(1) Each Mega Millions second through ninth prize shall be paid in one payment.

(2) Should total prize liability, exclusive of jackpot prize rollover from previous drawings, exceed three hundred percent of draw sales or fifty percent of draw sales plus $50,000,000, whichever is less, (both hereinafter referred to as the "liability cap"), the second and third prizes shall be paid on a parimutuel rather than fixed prize basis, provided, however, that in no event shall the parimutuel prize be greater than the set prize. The amount to be used for the allocation of such parimutuel prizes shall be the liability cap less the amount paid for the jackpot prize and prize levels four through nine. The California state lottery's sales and prizes are excluded for purposes of the liability cap calculation.