b). FILING OF MEDALLION RELEASING, INC. ENTITY – In order to comply with U.C.C. security filing requirements of some of the label supplier studios participating in the Medallion Releasing sales venture, Company has elected to file a new corporate entity, Medallion Releasing, Inc., and to domicile this division in Nevada. Company has elected Tom Sims to serve as President of Medallion Releasing, Inc., reflecting his capacity as the primary sales executive for this division whose sole function is to generate sales for HHSE products and for the products of the participating supplier studios for HHSE. Under the terms of the structural formation, 100% of the fees and net revenues earned by Medallion Releasing, Inc. shall be remitted to Hannover House, Inc. Other corporate entities under the Hannover House corporate umbrella include Truman Press, Inc. (the original California entity, now domiciled in Arkansas), Bookworks, Inc. (an Arkansas special purpose corporation), and VODWIZ, Inc., a Wyoming special purpose corporation.
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