Item 10. Directors, Executive Officers and Corporate Governance.
(c) Significant Employees. 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
Item 11. Executive Compensation.
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).