Hannover House Inc (HHSE)

[Cpoulsen2]

Tom Sims is the man! His salary isn't reflecting his work at all!

Tom Sims Exec. V.P. Sales = $120,000*


* Tom Sims is also entitled to a sales-performance-based bonus compensation plan that pays him a commission of one percent
(1%) of Net sales generated in excess of the initial two-million ($2,000,000) in base revenues annually, up to a maximum annual
income of $500,000 (representing annual sales achievement of $38-million).

In addition to Eric F. Parkinson and D. Frederick Shefte, Company considers its Executive Vice President of Sales, Tom
Sim s, to be a significant employee. Sims joined the Company in June, 2014, with a mandate to recreate a multi-studio
distribution model similar to those that he successfully formed and operated for Vivendi / Universal Music Group and Allegro
Media Group. The release model being operated by Tom Sims, Medallion Releasing, Inc., is a consortium of five (at present)
video labels, each representing a specialty in non-competitive arenas and categories of videos (e.g., Spanish, Urban, Christian,
Family, Horror, Anime). The continued employment of Tom Sims is believed to be a material requirement of the supplier
studios participating with Medallion Releasing, Inc. For calendar year 2015, Company is forecasting gross sales of over $5 -
million from the Medallion supplier labels, which revenues will nicely supplement income being generated by Hannover House
activities.