(1) If used for merchandise, they will be treated for your purchases just as "gift certificates" usually are, i.e. they can pay for all of any purchase in the stores for as long as they last whether in conjunction with credit from trade-ins or otherwise. They may begin to be used for this purpose anytime after 6 months from their date of issue shall have passed. There will be no expiration date for their use.

(2) If a "Certificate" is used completely before the end of the first year, a "gift certificate" in an amount equal to 10% of the original value will be mailed to you within 30 days. If a "Certificate" is not used in full for merchandise by the 1st anniversary of its issue, a "gift certificate" in an amount equal to 10% of the amount used during that first year will be mailed to you within 30 days following such anniversary date. Thereafter, you will receive another "gift certificate" equal to 10% of the amount used for merchandise since the previous anniversary within 30 days after subsequent completion or after any subsequent anniversary.

(3) Beginning one year from the date of issuance, a "Special Book Certificate" shall begin to be eligible for cash redemption on the following basis. A check for 8% of the remaining balance on a "Certificate" shall be mailed within 30 days following each anniversary of a "Certificate" which has a balance remaining on an anniversary date.

(4) Three drawings will be held on the 1st day of each month (if such day is a holiday, the first day thereafter which is not a holiday) to select the "Certificates" to be redeemed for cash by the 10th day following the drawings. These "Certificates" will be redeemed for their remaining balances plus 8% per annum pro rated for the period from the last anniversary date to the date drawn. For any amount which has been used for merchandise since the last anniversary of a given "Certificate", there will be a "gift certificate" issued as described above.

(5) At least one "Certificate" of a $1,000 denomination will be drawn in each month in which there are any eligible. At least one "Certificate" of a $500 denomination will be drawn in each month in which there are any eligible unless there are no eligible $1,000 "Certificates", in which case three $500 certificates will be drawn.

(6) At least five "Certificates" of a $100 denomination will be drawn in each month in which there are that many eligible unless there are no eligible $1,000 "Certificates" and less than three eligible $500 "Certificates", in which case up to an additional fifteen eligible $100 "Certificates" shall be drawn until the total face value of "Certificates" to be designated for cash redemption by this method equals $2,000 for said month.

(7) If for any reason a "Certificate" shall not have been redeemed in full by its sixth anniversary, it shall become due and payable within 30 days after such anniversary date. We reserve the right on 30 days written notice to call for cash redemption any or all outstanding "Certificates" unless the holder of such "Certificate" shall agree to convert said "Certificate" to a regular "gift certificate". In the case of such a call or conversion the holder shall be entitled to pro rata interest, an additional "gift certificate" or both in a similar manner to the earlier stipulations.

(8) The only exception to the foregoing cash redemption terms shall be that in the event of "emergency" circumstances, a notice of such circumstances and an explanation thereof is to be submitted to a "board of exceptions", comprised of one "Certificate" holder from each denomination, at least ten days before the next regularly scheduled drawings. Such board shall have the sole power to rule on the necessity of early redemption and allot an appropriate denominational slot from the next monthly drawings to satisfy the emergency. No more than one such slot shall be allotted for any one month.