Unisync : Annual Information Form year ended September 30, 2021

UNISYNC CORP.

ANNUAL INFORMATION FORM

For the Fiscal Year Ended

September 30, 2021

Dated: December 23, 2021

TABLE OF CONTENTS
TABLE OF CONTENTS ..............................................................................................................................................	1
CORPORATE STRUCTURE .......................................................................................................................................	3
The Corporation ..............................................................................................................................................	3
Intercorporate Relationships............................................................................................................................	3
DESCRIPTION OF THE BUSINESS...........................................................................................................................	5
Summary .........................................................................................................................................................	5
Marketing and Sales Strategy ..........................................................................................................................	6
Competitive Conditions...................................................................................................................................	7
Research and Development Activities.............................................................................................................	7
Intellectual Property ........................................................................................................................................	7
Cycles ..............................................................................................................................................................	8
Employees .......................................................................................................................................................	8
Foreign Operations ..........................................................................................................................................	8
Financing of the Business................................................................................................................................	9
Risk Factors.....................................................................................................................................................	9
GENERAL DEVELOPMENT OF THE BUSINESS..................................................................................................	13
DESCRIPTION OF CAPITAL STRUCTURE ...........................................................................................................	15
Authorized and Issued Share Capital ............................................................................................................	15
Stock Option Plan..........................................................................................................................................	15
Shareholder Rights Plan ................................................................................................................................	15
DIVIDEND POLICY ..................................................................................................................................................	16
MARKET FOR SECURITIES OF THE CORPORATION ........................................................................................	16
Trading Price and Volume ............................................................................................................................	16
DIRECTORS AND OFFICERS ..................................................................................................................................	17
Name, Occupation and Security Holding ......................................................................................................	17
Background of the Directors and Executive Officers ....................................................................................	18
Cease Trade Orders, Bankruptcies, Penalties or Sanctions ...........................................................................	19
Conflicts of Interest .......................................................................................................................................	19
LEGAL PROCEEDINGS AND REGULATORY ACTIONS ....................................................................................	19
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS...........................................	20
TRANSFER AGENT AND REGISTRAR..................................................................................................................	20
MATERIAL CONTRACTS ........................................................................................................................................	20
INTERESTS OF EXPERTS........................................................................................................................................	20
ADDITIONAL INFORMATION................................................................................................................................	20
Audit Committee Charter ..............................................................................................................................	20
Composition of the Audit Committee ...........................................................................................................	20
Relevant Education and Experience ..............................................................................................................	20
External Auditor Service Fees.......................................................................................................................	21
SEDAR..........................................................................................................................................................	22
SCHEDULE A - AUDIT COMMITTEE CHARTER
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ANNUAL INFORMATION FORM

CERTAIN INTERPRETATION MATTERS

Unless the context requires, all references to the "Corporation" or "Unisync" means Unisync Corp. and its predecessors. Unless otherwise specified, all references to "$" or "dollars" refer to Canadian currency.

This Annual Information Form ("AIF") may refer to registered trademarks, trade names and service marks of companies other than the Corporation, which names and marks belong to their respective owners. Unisync and the Unisync logo are registered trademarks.

This AIF is dated December 23, 2021. Except where otherwise indicated, the information contained in this AIF is stated as of September 30, 2021.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This AIF contains statements, which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation. Such forward-looking statements or information include, but are not limited to, statements with respect to the Corporation's plan to expand into other segments of the garment industry, to acquire established revenue producing businesses, to the expected recovery of customers in the transportation, hospitality and service industries from the COVID-19 pandemic and to pursue the Department of National Defence's Operational Clothing and Footwear Contract and new accounts in the North American airline sector, in addition to statements regarding the Corporation's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation's underlying assumptions. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "would", "could", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Persons reading this Annual Information Form are cautioned that such statements or information are only predictions, and that the Corporation's actual future results or performance may be materially different. Factors that could cause actual events or results to differ materially from those suggested by these forward- looking statements include, but are not limited to: the effects of the COVID-19 pandemic, competition, operational risk, litigation, a change in the timing or bidding conditions of future government contracts, customer concentration/economic dependence, working capital, potential conflicts of interest, volatility of stock price, disruptions in production, government budgetary restraint, reliance on key personnel, reliance on few suppliers, reliance on subcontractors, technological milestones, operating cost fluctuations, increases in interest rates, decreases in the value of the Canadian dollar against the U.S. dollar and other foreign currencies, access to credit, the impact of pandemic diseases and the efficacy of vaccines to limit those pandemic diseases, potential unknown liabilities and cybersecurity risks and including, but not limited to, other factors described in the Corporation's reports filed on SEDAR, including its financial statements and management's discussion and analysis for the year ended September 30, 2021. This list is not exhaustive of the factors that may affect the Corporation's forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this Annual Information Form are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Corporation will be realized. The Corporation disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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CORPORATE STRUCTURE

The Corporation

Unisync Corp. ("Unisync", or the "Corporation") is a corporation existing under the British Columbia Business Corporations Act. The Corporation was formed by the amalgamation of Chatworth Resources Inc. and ComWest Capital Corp. on November 30, 2005, under the name "ComWest Enterprise Corp.". The Corporation changed its name to Unisync Corp. on August 1, 2014. The Corporation's head office and principal address are located at Suite 1328, 885 West Georgia Street, Vancouver, British Columbia, Canada, V6C 3E8 and its registered office is located at 2500 - 700 West Georgia Street, Vancouver, British Columbia, Canada V7Y 1B3.

On October 19, 2009, the outstanding common shares of the Corporation were effectively consolidated on a 5:1 basis. On March 3, 2015, the outstanding common shares of the Corporation were consolidated into a single class of shares named the Class B Common Shares. On March 28, 2018, the Class B Common Shares were renamed to "Common Shares".

Intercorporate Relationships

As at September 30, 2021, the Corporation had seven directly and indirectly wholly-owned subsidiaries, York Uniforms Holdings Limited (incorporated under the laws of The Province of Ontario), Peerless Garments GP Inc. (incorporated under the laws of The Province of Ontario), Unisync Group Limited (incorporated under the laws of The Province of Ontario), 9334-0438 Quebec Inc., operating as Utility Garments Inc. (incorporated under the laws of The Province of Quebec), Unisync, Inc. (incorporated under the laws of The State of Delaware) and Unisync (Nevada) LLC (incorporated under the laws of The State of Nevada). The Corporation also indirectly holds a 90% partnership interest in Peerless Garments LP (formed under the laws of The Province of Manitoba).

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A diagram setting forth these intercorporate relationships is set forth below.

			Unisync Corp.
		public holding company
			TSX ("UNI")
100%
	100%
Peerless Garments GP Inc.		York Uniforms Holdings Limited
general partner		holding company
acquired August 19, 2010		acquired June 30, 2014

100%

9334-0438 Quebec Inc.

operating as Utility Garments Inc. designs, manufactures, distributes corporate apparel

acquired October 1, 2018

18%82%

Unisync Group Limited

designs, manufactures, distributes

corporate apparel

acquired June 30, 2014

90%

Peerless Garments LP

manufactures protective military wear

acquired August 19, 2010

100%

Unisync, Inc.

U.S. holding company

incorporated October 1, 2018

100%

Unisync (Nevada) LLC

designs, manufactures, distributes

corporate apparel

incorporated October 1, 2018

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