5130 MADISON AVENUE * SACRAMENTO, CA 95841
PHONE: (916) 779-6252
Open Every Day 10 am - 6 pm

CONSIGNMENT AREA UPDATE: There is more room available in the consignment
area for both floor and wall items. Please be sure your items are of good quality and in good
condition. This area is not meant for sale of fixer-uppers!
Items placed in the consignment area must have a specific consignment price tag
obtained from the cashier. Do not use your own tags even with the correct consignment
dealer number. We date and track the items placed on the floor and on the walls in this limited
area. Items not bearing the proper tag will be removed and stored in the warehouse for your
pickup.

YEAR-END SALES PRINTOUT: If you would like a printout of your 2011
sales after 12-31-11, please leave your name and dealer number with the cashier.
A printout will be placed in your file.

CAUTION TO NEW DEALERS RE SELLER'S PERMIT APPLICATION: The
Board of Equalization's online application for a Seller's Permit can be confusing, so please be
aware of the following. When it refers to the "business" in several spots (i.e., "business e-mail"
and "business phone number"), it is referring to your own personal business, whether you have
given your business a name or are simply using your own name. It is not referring to Midway
Antique Mall. A few dealers have put Midway's e-mail address on the form and we have been
receiving e-mails from the Board that are meant to go to individual dealers, such as e-mails
giving you your Express Log-in code, which is like your personal BOE password.

If you review the article below regarding the BOE compliance visit, you will see that you need
to tell them you want to "add a sublocation" and that is Midway Antique Mall at our Madison
Avenue address. They should not need Midway's e-mail address for this purpose.

It is best that new applications be done in person at the BOE. It is quick (once you find parking!)
and much simpler than it appears online.

CAMERA UPGRADES: In the process of negotiating a lease renewal with our security
camera/monitoring company, we got them to throw in four additional cameras and a few other
perks. There will be two cameras installed outside the building and two more inside. We are
happy to report that there have been no incidents requiring further surveillance equipment, but
the more, the better.

VINTAGE CLOTHING: If you want to place a pricey item in Vintage Clothing (over $100),
please advise Faye so that she can keep an eye on it and position it in full camera view. There
haven't been any problems in this regard, but the holidays are near and you can never be too
careful. If Faye is not present, just leave a note at her jewelry repair station.

REMINDER ABOUT DISCOUNT POLICIES: We have prepared a single-page memo
reminding dealers about our long-standing discount policies and addressing a few creative
methods customers use nowadays for obtaining discounts. The memo is in the Dealer Room
and on the dealer file cabinet and is a reiteration of excerpts of the Dealer Agreement
primarily concerning further discounts on items already marked SALE or FIRM and discounts
on merchandise of dealers not onsite. We understand that some dealers will discount in a
heartbeat, but others carefully price their items in this economy with little profit built in and
have a right to expect that Midway will follow its dual policy of not discounting SALE or FIRM
items and not calling dealers in order to do so. If you want to sell your stuff for less, price it
that way, mark it on sale, or be onsite on busy days (weekends) to wheel and deal. Otherwise,
our discount policies must be followed. Dealers who opt to continue performing work shifts and
dealers who are called upon to perform rent-credit work shifts will be expected to be very
familiar with our discount policies and able to convey them on the spot, during their shifts, to customers seeking discounts. Copies of the memo are available upon request.

DEALER CONSIGNMENT AREA EXPANDING: We are expanding the consignment
aisle for Midway dealers who occasionally come across good buys on furniture but whose
space (or showcase!) does not accommodate it. Consignments have been moving nicely.
There is no rent charged to dealers, but the commission on items sold from the consignment
aisle will be 20% instead of ten. If you wish to place a piece of furniture in this area, you
must go through Mark or Gary, and a special price tag will be prepared for your item. Since
space is limited, only furniture is permitted in this area and will be on an item-by-item basis.
It is located at the very back of the Center Showroom.
Art walls are now available for consignment pieces in this high-traffic aisle.

REMINDER RE MAILING PAYCHECKS: As set forth in the Dealer Rental Agreement,
if you want your paychecks mailed to you, you must supply us with business-size
envelopes that are stamped, self-addressed and return-addressed. The checks are
set out for pick-up by the mail carrier, who only comes into the store on days he has mail
to deliver to Midway, and federal holidays may interfere with mail pick-up. So please
allow at least one week from the pay date for receipt of your check by mail. In the event
checks are lost in the mail, also as set forth in the rental agreement, a $35 stop-payment
fee will be assessed before a new check is issued.

BOARD OF EQUALIZATION COMPLIANCE VISIT: Midway has had its first compliance visit
from the BOE, as they do with all businesses, and passed without a hitch. We did learn, however, and must
pass on to you, that every dealer must have a separate seller's permit (the orange form) for each and every
location where that dealer sells, including outdoor and indoor shows, flea markets, stores, malls, etc. The
"account number" on the permit will be the same on all the permits, but the address shown directly
underneath the number must coincide with the location where you are selling. For example, if you sell at
Midway and the Trove and Alameda and the Folsom outdoor shows, you must have four different (orange)
seller's permits. If you just have your home address on your permit, that will indicate to the BOE that you are
selling from your home, which could have tax or local licensure implications. Therefore, if you do not currently
have a seller's permit that has Midway Antique Mall shown as the name and address, you must call the BOE
and obtain one. There is no cost, you can't do it online, and you don't need to go in person. Just phone the
local BOE office at (916) 227-6700 and tell them you need to add a sublocation onto your permit. The BOE
compliance specialist we met with is Ms. Lily Feng, whose card lists a phone number of (916) 203-8162.
Please feel free to call her if you have any questions.

LOTTERY POOL NOW WEEKLY instead of bi-weekly. Fewer dealers are playing, so the winnings,
small as they may be, are larger for each player; i.e., six dollars each instead of 60 cents! Winnings,
regardless of amount, will be divided equally among players.

SALES REPORTS: The recent downtime we experienced with the sales check-in software gives us an
opportunity to remind dealers of a few basics. First, mall computer software operates virtually 24/7, as you
may have noticed that some sales updates are actually posted at 3 a.m. It would be miraculous if there was
never any downtime in such a program. Updates become necessary and, as you may know, are imperfect.
Tweaking must be done and it takes time. If the problem occurs on a Friday or a weekend, our Texas software
posting service may not be available until the following Monday. Therefore, for those dealers who are used to
checking in on their sales, in the event that check-in fails:

                * READ THIS DEALER PAGE FIRST.   It will give you information on when the system
                       is expected to be back online. You can be sure the info will be headlined and not buried below.
                      You won't find it on the main, customer-oriented web page or on the page that you may skip to
                       that bypasses our message and goes directly to your sales. This page is a service we provide to you.

                * ALLOW 48 HOURS BEFORE PANICKING AND CALLING US. If it occurs on a Friday
                       or a weekend, factor that into the time parameter. Rest assured, your sales are not lost and it does
                       not affect your paycheck. We appreciate your wanting to alert us of the problem if there is no
                       message about it on this page.

We have had remarkably little downtime on this system that is in its sixth year of operation and would like to
think there will be no more episodes, but that is just wishful thinking. So we appreciate your patience and confidence
in our ability to correct the inevitable glitches that occur. For those of you who took it in stride, THANK YOU!

Radio Reminder: As a reminder to our long-time dealers and for those who are
newer to Midway: Radios left on (for sale or not) must be kept low and tuned to a music
station and not sports or talk radio, which is primarily political and is bound to offend or
annoy one side or the other. We had customer complaints about this in our first year of
operation and decided that neutrality is best for business. Talk radio also conflicts with
the overhead music and may affect not only your sales, but your neighbors'.

City of Sacramento business license audits: If your state Board of Equalization seller's
permit bears an address other than Midway's address, and that other address is within the City of Sacramento city limits, you may be receiving a letter from a company the city has hired to
"conduct a compliance audit of the City's business operation tax ordinance for the years of 2006 through 2010." Midway's dealers who have sold exclusively at Midway from 2006 to present are not affected by this since Midway dealers operate under Midway's license. If you sell anywhere else, within the city of Sacramento, you may possibly be contacted by the audit group, as two of our dealers have recently been. If you are contacted by MuniServices regarding this, and you have sold nowhere other than at Midway since 2006, see Mark. He will provide you with a letter to present
to the audit service company verifying that you do not require the '"City of Sacramento Business
Operations Tax certificate" referred to in their letter.

REMINDER to Dealers who vacate: You are responsible for gathering all merchandise belonging
to you before you leave Midway. This includes items in Vintage Clothing and other community booths,
in the Dealer Room, and in other dealers' booths where you may have placed items for sale. As per the
Dealer Agreement, items you leave behind may either be donated themselves or the sales proceeds from
them donated to our current charity. When you cease paying rent, items left behind are considered
abandoned. You must also supply us with stamped, self-addressed envelopes if you want your remaining
paychecks mailed.

Advertising Gimmicks: Some dealers have suggested that Midway utilize outdoor signs, banners,
sidewalk A-frames, acrobats, etc., to drum up business, and we have always replied that such things are against Sacramento County codes, which was made very clear to us when we have applied for and received our County business licenses. We recently came across the old Antique Plaza's dealer letter from January 23, 2003, detailing their experience regarding this type of advertising. It makes interesting reading and confirms our understanding of the consequences of utilizing such gimmicks. The letter is in the Dealer Room for your info.