Hannover House Inc (HHSE)

[Cpoulsen2]

CEO & COO buying shares 3.6-4.2 x over the market price

a). Officer Share Purchase / Debt Forgiveness. During the fourth quarter of 2014, the Company’s two principal
managers, Eric F. Parkinson (C.E.O.) and D. Frederick Shefte (President) each agreed to purchase shares 6,541,613 Common
Stock shares in the Company for an aggregate amount of USD $200,000, representing a per-share transaction amount of
approximately $.03057 per share. On October 1st, the first day of the fourth quarter of 2014, the Company’s shares were trading
on the open market for $.0072 each; on December 31, 2014, the last day of the fourth quarter of 2014, the Company’s shares
were trading on the open market for $.0085 each. The agreement by management to purchase shares at $.03057 represents a
premium-to-market value of approximately 3.6-to-4.2-X over market value at that point in time. In consideration of the
agreement, the managers waived the Company’s obligation to pay this amount to each of them in deferred salary, as had been
accumulating over the prior years and creating a balance sheet liability.