SPIN MASTER CORP. 2018 ANNUAL INFORMATION FORM March 21, 2019 TABLE OF CONTENTS Page MEANING OF CERTAIN REFERENCES .................................................................................................................. 1 FORWARD-LOOKING STATEMENTS ..................................................................................................................... 1 NON-IFRS FINANCIAL MEASURES ........................................................................................................................ 2 THE COMPANY........................................................................................................................................................... 4 Incorporation and Office Address ................................................................................................................... 4 Intercorporate Relationships ............................................................................................................................ 4 BUSINESS OF THE COMPANY ................................................................................................................................. 5 General Development of the Business ............................................................................................................. 5 Overview of Business ...................................................................................................................................... 8 Competitive Strengths ..................................................................................................................................... 9 Growth Strategies .......................................................................................................................................... 12 Overview of Business Segments ................................................................................................................... 14 Inventors ........................................................................................................................................................ 19 Licensing ....................................................................................................................................................... 19 Entertainment ................................................................................................................................................ 20 In-House Digital Production .......................................................................................................................... 20 Manufacturing ............................................................................................................................................... 20 Quality Control .............................................................................................................................................. 21 Customers ...................................................................................................................................................... 21 Distribution Channels and Sales and Marketing............................................................................................ 21 Seasonality..................................................................................................................................................... 22 Competition ................................................................................................................................................... 22 Employees ..................................................................................................................................................... 23 Insurance ....................................................................................................................................................... 23 Intellectual Property ...................................................................................................................................... 23 Premises ........................................................................................................................................................ 23 INDUSTRY OVERVIEW ........................................................................................................................................... 23 Children’s Entertainment ............................................................................................................................... 23 Evolving Play Patterns .................................................................................................................................. 23 Government Regulation ................................................................................................................................. 24 DESCRIPTION OF SHARE CAPITAL ..................................................................................................................... 24 Subordinate Voting Shares and Multiple Voting Shares ............................................................................... 24 Preferred Shares ............................................................................................................................................ 27 Dividend Policy ............................................................................................................................................. 28 Prior Issuances of Unlisted Securities ........................................................................................................... 28 Market For Securities .................................................................................................................................... 28 Escrowed Securities and Securities Subject to Contractual Restriction on Transfer ..................................... 28 DIRECTORS AND EXECUTIVE OFFICERS ........................................................................................................... 29 Cease Trade Orders ....................................................................................................................................... 30 Bankruptcies .................................................................................................................................................. 31 Penalties or Sanctions .................................................................................................................................... 31 Advance Notice Provisions ........................................................................................................................... 31 AUDITOR AND AUDIT COMMITTEE INFORMATION ....................................................................................... 32 RISK FACTORS ......................................................................................................................................................... 33 MATERIAL CONTRACTS ........................................................................................................................................ 47 INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS......................................... 51 LEGAL PROCEEDINGS ............................................................................................................................................ 51 TRANSFER AGENT AND REGISTRAR .................................................................................................................. 51 EXPERTS .................................................................................................................................................................... 51 ADDITIONAL INFORMATION ................................................................................................................................ 52 GLOSSARY ................................................................................................................................................................ 53 APPENDIX A SPIN MASTER CORP. CHARTER OF THE AUDIT COMMITTEE ......................................... A-1 MEANING OF CERTAIN REFERENCES Spin Master Corp. (the “Company” or “Spin Master”) presents its consolidated financial statements in United States dollars. In this Annual Information Form, all references to “$” are to United States dollars and all references to “C$” are to Canadian dollars. Disclosure in this Annual Information Form is made as at December 31, 2018 unless otherwise indicated. Certain terms used in this Annual Information Form are defined under “Glossary”. FORWARD-LOOKING STATEMENTS Certain statements, other than statements of historical fact, contained in this Annual Information Form constitute “forward-looking information” within the meaning of certain securities laws, including the Securities Act (Ontario), and are based on expectations, estimates and projections as of the date on which the statements are made in this Annual Information Form. Forward-looking statements include, without limitation, statements of the Company with respect to: industry trends, overall market growth rates and the Company’s growth rates; expectations regarding revenue, expenses and operations; measures of the Company’s operating performance and financial condition; the business plans and strategies, including development and acquisition opportunities and product re-launches; intentions with respect to, and the ability to execute, its growth strategies; new brands and brand expansions; expansions into new categories; securing additional broader and more significant