Q. How does this thing work?
A. It's very simple. All our company has done is redirect advertising dollars back into the pockets of our customers. Instead of paying huge dollars to TV stations, newspapers and radio station, we are giving the money to you through the Cash Rewards Program.

Q. How can your Brokerage afford to make this offer?
A. Like most companies, the Don Lawyer Real Estate Team has a marketing budget. Other companies choose to spend their advertising dollars running expensive radio, TV and “image advertising”, or offer discounts on their services, or other such incentives. Don’s Sales Team chooses to spend a large portion of its budget on something’s from which all the clients of our Team can truly benefit. Don has chosen to reinvest a significant portion of the Team’s promotional dollars directly back into the pockets of clients who support the Team by using its services. A fair shot at up to $10,000 is a lot better than a gift certificate at a local restaurant – wouldn’t you agree?

Q. Please explain the concept of “Breakage”.
A. Insurance, coupon and rebate programs like Cash Rewards work on the concept of “breakage”. Breakage is the statistical difference between the number or coupons, rewards, policies, etc. issued, and those that are collected or paid. Have you ever bought an item and received a rebate coupon in the box it came in but never sent it in? That’s breakage. Breakage can be quantified, tracked and projected. The mathematical term for such statistics is “actuarial data”. Actuarial data is used by companies when offering a payout, the total of all such commitments typically being larger than the sum total of the company’s premium payments.

Q. Are there other kinds of programs that work this way?
A1: Yes. Even your auto insurance policy! Let's say, you buy a new car for $20,000 then insure the car with an auto insurance company that you are using for the first time. You give the insurer a $500 check for the premium at the time the policy is issued and three days later, you have an accident and total the car. What does the insurance company do? They send you a check for $20,000, even though you only gave them one premium of $500. Is that too good to be true? No, of course not! We all know that every policyholder won’t have an accident and make a claim. Effectively, those who do not make claims pay for those who do (with something always left over for the insurance carrier's profit!) Do people pay medical, auto, life and disability insurance? How can insurance companies be so profitable yet still pay all valid claims? The answer is that they work like the Cash Rewards Program — the Certificate Holders who don't make a claim, or don’t follow the rules when they do make a claim, pay for those who do make valid claims.

Q. Is there Actuarial Data for programs like Cash Rewards?
A. Yes. This program is designed on the basis of such data — it is the foundation of the Cash Rewards Program, as it is for all such breakage offers. For example, 47% of all Cash Rewards Certificate recipients do not even make their initial claim within the first 7 days, as required! As hard as it may be to understand, a huge number of people given Cash Rewards Certificates will never make their claim, or they will not follow the rules, or will forget, or will lose their certificate or the documentation, will die, inherit money, etc., etc.

Q. In addition to insurance companies, are there other institutions that benefit from breakage?
A. Yes. Banks, financial and many other large institutions have programs predicated on the benefit of breakage. For example, unclaimed bank account balances, lottery winnings, PMI mortgage premiums, etc. - the list is huge. The IRS is holding $2.5 million in unclaimed tax refunds for calendar year 1999 alone! What happens to this money?

Q. I don't believe this is for real.
A. It is simply a financial reward that is paid for by the Sponsor (in this case, the Don Lawyer Real Estate Team) and offered to you at point of purchase/sale. There are hundreds of other Sponsors around the United States and Canada. Some are other real estate offices operating in different territories; others are in different industries and businesses. For example, Master Craft Boats uses the program as does Keller Williams, ReMax, Oak Creek Homes, American Home Star ( a large U.S. home builder), G & A Marketing (one of the largest automobile marketing companies in the U.S.), Budget Blinds (largest window covering retailer) and others.

Q. When do I get my Cash Rewards Certificate?
A. You will receive your Certificate upon closing.

Q. How long is the Cash Rewards Certificate good for?
A. The Certificate is redeemable 36 months after the closing of the transaction.

Q. Thirty-six months is too long, why do I have to wait so long to get my money?
A. If I gave you a postdated check today for $10,000 would you cash it?

Q. To whom can a Cash Reward Certificate be issued?
A. The recipient of the Cash Reward Certificate must be the person named on the Closing Statement. If the Closing Statement is made out in the name of Mr. Bill Jones, then the Cash Reward Certificate must be made out in the same name.

Q. If I die before my Certificate matures, will my family receive the funds?
A. No.

Q. Can the Certificate be transferred to a family member once it has been issued?
A. The Cash Reward Certificate is not transferable under any circumstance. It remains payable only in the name of the person on the Closing Statement.

Q. What do I have to do to redeem my Certificate for Cash?
A. The simple steps you must follow are clearly indicated on the Certificate and on a handout you will receive before closing. You can also call me and I will explain the steps to you.

Q. If I miss a requirement by 1 day, will this void my Certificate?
A. Yes. Just like your insurance policy. If you missed your insurance premium payment by the end of the grace period, your insurance is cancelled.

Q. I have lost my Cash Reward Certificate. Can it be replaced?
A. If you lose or destroy your Certificate it cannot be replaced and you will not be eligible to make a claim. Look after your Cash Reward Certificate just like you would cash. Comply with the printed terms and conditions and you will not become a statistic.

Q. What if you guys go out-of-business during the thirty-six months?
A. The Cash Rewards program is administered by an independent third party. This was done to insure that no matter what happens to us, you could still get your cash.

Q. What if I do everything in a timely and correct manner and Cash Rewards goes out of business?'
A. The program is set up to pay the claims for money due even if of Cash Rewards Inc. (“CRI”) or the Sponsor who issues the Cash Reward Certificate (in this case, Keller Williams Realty) goes out of business.

Q. Why does everything I send have to be sent by certified mail?
A. Consumers are asked to mail their registration and final claim in by certified mail so there will never be any confusion as to when they were sent. Remember, there are strict timelines within which documents must be sent.

Q. Can I use FedEx or UPS? Why must I use the Post Office and send by Certified Mail?
A. To be fair to all Certificate Holders, the program must have material conveyed to the ITPA in a uniform manner — one that will never change. Material must also be sent by a service that will give the sender a reliable means to prove when it was sent. Certified Mail satisfies these requirements. FedEx, UPS, DHL, Airborne and other such services either do not have an adequate system for proving when you sent something or they have a system but it is could change overnight at the whim of the company.

Q. The final step in the claims procedure appears tricky. It almost seems as if the company is trying to trick the public so claims do not have to be paid. Is this true?
A. Absolutely not.
- The reason we ask for a certified birth Certificate is simple — we need to know that you are who you say you are.
- The reason an original receipt is required and not a copy is that it is difficult to manipulate an original document.
- The reason proof of purchase is required also simple — we need to know with certainty that you are the actual purchaser of the product in order to protect us and other certificate claimants from fraud.
- The reason a current utility bill is required is simply because you may have moved in the last 36 months and we need to make sure that your claim payment is sent to the correct address.
- The reason you are required to save your first certified mailing receipt is for your protection, so that in case of any dispute as to when or if you made the 7-day window, you have proof. We use the date from the postal receipt, not the day it is received by our office.

Q. Why can't I get the Cash Reward taken off the price of the Property today?
A. As you can see, we have different cash rewards depending on the particular property you are interested in. Let's narrow it down to your particular transaction and see what the cash reward is. Then, I can sit down with you and explain all the details of the program.

Q. I don't believe this is for real!
A. It is simply a financial reward that is paid for by the sponsor and offered to you at the point of sale in appreciation doing business with us.

Q. This sounds like a scam — it seems gimmicky!
A. It is simply our way of saying thank you for using our services and allowing us to demonstrate first-hand yet another benefit of using the Don Lawyer Real Estate Team. It cost you nothing to participate and you certainly have no obligation to take advantage of this FREE program if you choose not to. It’s a benefit of using our Team. You have absolutely everything to gain and nothing to lose.

Q. How do I know this is for real?.
A. What do you have to lose? The Certificate is given to you for as a reward for doing business with us. It is not offered by any other brokerage in the area. Don has purchased exclusive rights to the territory. We provide it to you as a bonus. It’s a reward and if for any reason you do not follow through, you will still have gotten the full value of our services, which are far superior to any of our competitors, even without the bonus of the Cash Reward.
 

The Claim Fund

Q. Please explain the Claim Fund to me.
A. The Claim Fund is an account administered by Compass Bank. The beneficiaries are one of the following two groups: 1) validly claiming Certificate Holders, or 2) recognized national charities (Children's Medical Center and Scottish Rite Hospital for Children).

Q. What is the role of the Claim Fund Bank?
A. The Claim Fund Bank holds funds in a trust account for the potential benefit of Certificate Holders through an escrow account.

Q. Who is the Claim Fund Bank?
A. The money in the Claim Fund is held by Compass Bank, a southwestern financial holding company headquartered in Birmingham, Alabama. Compass Bank currently operates 376 full-service banking centers in seven states. It provides a broad array of financial services and is among the top 40 U.S. bank holding companies by asset size. Compass was named to Forbes “Platinum 400” list as one of the best managed companies in America (for 5 consecutive years) and is a NASDAQ traded stock under the symbol CBSS.

Q. How is the money in the Claim Fund protected?
A. Compass will hold funds for the program regardless of whether or not CRI is in business, or even if the program were to change the ITPA or the escrow agent. CRI does not hold the funds. Furthermore, it is the ITPA who reviews claims and issues instructions to issue funds to validly claiming Certificate Holders.

Q. Is the Claim Fund insured? Can the investment be lost?
A. The majority of the funds will be invested in federal or state government bonds, backed by the full faith and credit of the United States Government. Funds not invested in government bonds will be re-invested in the Claim Fund bank account. The bank account is the contractual promise of one of the largest banks in the United States to make the funds available on demand.

Q. What controls are in place to make sure the funds are protected from fraudulent of invalid claims?
A. An escrow agent (with no financial affiliation or stake in CRI) must authorize each disbursement of cash pursuant to any claim under the Cash Rewards Program. The escrow agent is paid an escrow fee for rendering escrow services. Currently, the escrow agent is Gary D. Glick, Attorney at Law, whose office is in Irving Texas. The escrow agent’s responsibilities include overseeing all monetary transfers within the Cash Rewards Claim Fund by Compass Bank and the escrow works with and oversee all transfers money within the Cash Rewards Claim Fund held by Compass Bank.

Q. If the Claim Fund Bank is merely the repository of funds, why is size important?
A1. The Claim Fund bank is the repository of funds held for the potential benefit of Certificate Holders and disburses funds only at the direction of the ITPA. However, funds in the bank account at this bank represent the aggregate contractual promise to make all funds available on demand to qualifying Certificate Holders. It is better that this promise be made by a large, financially strong institution.
A2. The fact that an institution of the scale and reputation of Compass Bank would associate with the CRI program says good things about the program. Large financial institutions carefully guard their reputation, and protecting that reputation is far more valuable to them than merely taking in a few more bank deposits. While Compass Bank does not specifically endorse the CRI program, they would not associate with CRI if they did not feel comfortable with the program.

Q. Can CRI terminate the Claim Fund bank?
A. Yes. This is important to assure that the bank remains price-competitive. However, CRI can terminate Compass Bank only if CRI appoints a successor bank with substantial assets. There are no circumstances whereby CRI could terminate the Claim Fund and gain control of the funds held for Certificate Holders.
The Role of the ITPA

Q. What is the “Independent Third Party Administrator” (“ITPA”)?
A. The ITPA verifies the accuracy and validity of all Claims against the Claim Fund. If and when a Claim is determined to be valid, the ITPA advises the Claim Fund holding the funds in trust to disburse the funds, in accordance with the predetermined set of escrow and other procedures the Claim Fund must adhere to.

Q. What is the role of the ITPA?
A. The role of the ITPA is to determine the validity of Certificate Registrations and redemption claims submitted by consumers, which claims, if valid, will survive until any and all customers have redeemed their awards. The ITPA for Cash Rewards is the Resolve Corporation. The Resolve Corporation has offices across the U.S. and Canada through which it provides Business to Business, Consumer Fulfillment, and other services including (on the consumer fulfillment side) Coupon Clearing/Manufacturer Redemption Services, Rebate/Mail Fulfillment, Contest Management, Premium and Sampling Fulfillment, Loyalty Programs and more.

Q. What controls are imposed on the ITPA?
A. The ITPA acts independently of CRI. Sponsors and the charities that benefit from unclaimed funds cannot tell the ITPA what claims to approve. However, the ITPA is contractually obligated to handle the Claim Fund in strict accordance with the rules and procedures of the Cash Rewards program. If it fails to do so, it would be liable for any financial loss and CRI would have the right to appoint a successor.

Q. What access does the ITPA have to the Claim Fund?
A. The ITP A has access to the Claim Fund only through an appointed escrow agent. Of course, the ITPA can direct the escrow agent to pay it's agreed upon fees. Other than that, the ITPA can have funds disbursed only in 2 instances: (A) to valid Certificate claimants or (B) to the recognized charities, for funds not claimed by Certificate claimants.

Q. Is the ITPA bonded? If not, why?
A. The ITPA is not bonded, because the ITPA never handles the money and cannot divert money to itself.

Q. Can CRI terminate the ITPA?
A. Yes. This is important to assure that the ITPA remains price-competitive. However, CRI can terminate the ITPA only if CRI appoints a successor that demonstrates an ability to perform the required functions and certifies that it is independent of CRI and the potential beneficiaries of the Claim Fund.

Q. Who has access to the Claim Fund?
A. Only the Escrow Agent, who is independent of both CRI and the ITPA, can disburse funds from the Claim Fund account. The Escrow Agent is a licensed attorney who corroborates that the ITPA makes proper disbursements. CRI has no control over the account and is not a signatory on it.

Q. Is CRI required by law to have an ITPA & a major financial institution as the Claim Fund bank?
A. The law does not require that an independent, impartial third party determine valid Certificate registrations or redemptions. Nor does the law require that CRI cause leftover funds in the Claim Fund account be donated to charity. The law would permit CRI itself to control these funds and make these decisions but it does not.

Q. If the law doesn't require an ITPA & would permit breakage to be paid to CRI, why doesn't CRI do this?
A. In this way, CRI demonstrates that the program will be fairly and impartially administered. Other firms might say “trust me”, and hope the merchant does so. We ask only that the sponsor look at the facts and ask whether the program itself is worthy of the sponsor's trust. CRI has put every safeguard they are aware of in place for this program. This has been done voluntarily, for the sole purpose of demonstrating trustworthiness, reliability and fairness and securing the program and its funds.

Q. CRI says the program complies with the law. Explain that.
A. The law requires that (like any retail promotion) the CRI program is fully, fairly, accurately and meaningfully disclosed, which it is. This insures that customers understand the program and are able to comply with it. CRI has gone to great lengths to insure that is done.

Q. How does CRI insure that the program is fair?
A. CRI trains Sponsors to explain the program to customers and emphasizes that a fair and meaningful explanation is required and essential to the success of the program. Every customer is told precisely how the program works. Every customer can easily perform the required steps. Every customer acknowledges in writing that the required steps have been explained to them and that they understand these steps. Thus, every customer understands that when they receive a Certificate, if they fail to redeem the Certificate, they have no one to blame but themselves.

Q This seems too good to be true!
A. I will be happy to explain anything further. What particular part of the program seems too good to be true?

Q. How long will this rewards thing last?
A. We are the only real estate brokerage in the Arlington/Mansfield area authorized to offer this program. Our brokerage generally awards only 10 Certificates a month and the agents are not told how many of each month’s allocation have been given out – they are simply told when they are used up. Let's see if we can get you on the program today so that you don’t’ miss out on this valuable opportunity.

Q. How long will the program continue?
A. The brokerage decides weekly what programs to offer and communicates this to the agents at weekly staff meetings. Each week the programs or the terms of any particular program can change. Thus, agents do not know from week to week what programs will be offered or in what amounts!

Scottish Rite Hospital for Children:
Scottish Rite Hospital for Children is a place that puts children's welfare above all else. Supported solely through private donations, the hospital is a place that provides the finest medical care in the friendliest environment. Today, Scottish Rite Hospital for Children provides ongoing treatment for more than 13,000 children annually, without charge. Their commitment to research and study, medical breakthroughs and new technologies has dramatically impacted the lives of more than 130,000 children, not only in Texas, but also throughout the world.

Children's Medical Center
For almost 90 years, Children's Medical Center has created an environment just for kids. An environment supported by highly trained medical and clinical staffs using advanced technology. From life-saving organ transplants to state-of-the-art trauma and intensive care, everything they do is for the love of children. Their research, education and advocacy efforts demonstrate their whole-hearted commitment to addressing issues that face today's children and their families.