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                                                                                         :

                     Plan of Distribution

 

                                                            Primarily for Currency Collectors


                                                                                                    August 22, 2005

Introduction:


The offering of the Millennium Dollar® as a paper currency suggests that some people may wish to collect this private currency. The purpose of this document is to briefly describe our current Plan of Distribution with respect to the offering of the Millennium Dollar®. Please note that this plan is subject to change without formal notification.


Denominations:


The Millennium Dollar® will be offered in seven denominations (1, 2, 5, 10, 20, 50 & 100 MR$). The first printing will use an image and quotation of Alexander Hamilton, the first Secretary of the U.S. Treasury. If the private currency is well-received, and additional printings are ordered; then the sponsor intends to add as many as six other historical figures over time. If this vision is fully carried out, then Hamilton will remain only on the 20 MR$ note; while being replaced in future printings on the other six denominations.


Products to be Offered:


The sponsor intends to offer the following products:

 

          1.      Collector’s Sets:            


The Collector’s Set will include seven notes (1, 2, 5, 10, 20, 50 & 100 MR$) with the same numerical serial number. (Only the English & Greek lettering in the serial number will vary by denomination.) The Collector’s Sets will range from serial number 1 to 2100, which will then be divided into seven series of 300 sets each. Each Collector’s Set Series will be reserved for a different historical figure, as follows:

 

          Series “A” (or the Hamilton Series) Collector’s Sets will have the successive serial numbers: 1, 8, 15,

           . . . 2094. There will be seven Hamilton notes in each set with the same numerical serial number.

 

          Series “B” (with historical figure #2) Collector’s Sets will have the successive serial numbers: 2, 9, 16,

           . . . 2095. There will be six Hamilton notes with the historical figure #2 replacing Hamilton on the 1

           MR$ note only. All the notes will have the same numerical serial number.

 

          Series “C” (with historical figure #3) Collector’s Sets will have the successive serial numbers: 3, 10,

          17 . . . 2096. There will be five Hamilton notes with the 1MR$ and 2 MR$ notes being replaced by

          historical figures #2 & #3. All the notes will have the same numerical serial number.


          And so on . . . through Series “G” Collector’s Sets.


The Hamilton notes for Series “B” through “G” will be set aside, until the MR$ notes are printed for each additional historical figure; whereupon the successive sets will become available. This means that we will only have 300 Hamilton Sets to offer at this time, which will contain uncirculated notes.


We will begin offering the Collector’s Sets in reverse order with the highest serial number first (2094) and continue downwards. Initially we expect the Collector’s Sets to sell close to the indexed value of the Millennium Dollar® notes they contain, which is 188 MR$. (On September 1, 2005, the indexed value of these notes would be 188 MR$ x 1.156361 = $217.40 plus shipping, handling & insurance charges.) However, we reserve the right to terminate the offering of the Collector’s Sets, if the winning auction price does not begin to reflect the numismatical value of the MR$ notes.

 

                     2.      Collector’s Notes:


Inasmuch as we have matched the serial numbers on the MR$ notes in the Collector’s Sets to be numerically identical, a Hamilton note will become available every time it is replaced with a MR$ note representing a different historical figure. As such, we will begin to offer individual Hamilton notes for collectors, which will be uncirculated as well. (If, and when, they are printed; six out of every seven notes, representing the other historical figures, will also become available.)


As an example, the Series “G” Collector’s Set (with serial number 2100) will have only one Hamilton 20 MR$ note. This will provide us with six Hamilton notes (1, 2, 5, 10, 50 & 100 MR$ notes) with the serial number 2100 that can be offered individually. We will offer the individual Hamilton notes with the highest serial numbers and work our way downward. Once again, we reserve the right to terminate the offering of the Collector’s Sets, if the winning auction price does not begin to reflect the numismatical value of the MR$ notes.

 

                     3.      Inspection Sets:


Inasmuch as we are asking merchants to accept the Millennium Dollar® notes at the indexed value; we felt that merchants would want to have a set of MR$ notes, so they could recognize the difference between the real notes and counterfeit notes. For this reason, we decided to offer Inspection Sets, which would include seven notes (1, 2, 5, 10, 20, 50 & 100 MR$). The Inspection notes will be backed with present value assets, just like the Collector’s notes; and may be submitted to the sponsor for conversion into United States dollars (USD) at the prevailing currency exchange rate.


We have set aside the Hamilton notes with serial numbers 2100 to 4500 for the Inspection Sets. The Inspection Sets will begin with a serial number, such as 2101 for the 1 MR$ note, but each subsequent note in the set will increase by one. As such, the Inspection Sets will range from 2101 to 2107, 2102 to 2108, 2103 - 2109 . . . 4494 - 4500.


We will begin by offering the Inspection Set with the lowest serial numbers (2101 - 2108) and move upwards thereafter. We expect to sell the Inspection Sets at or about the indexed value of 188 MR$ or $217.40 plus shipping, handling and insurance.

 

                     4.      Promotional Sets:


The Promotional Set is for those who want introduce their customers to the Millennium Dollar® notes, one MR$ at a time. The Promotional Set includes one hundred 1 MR$ notes with consecutive serial numbers, which are still in the shrink wrapped packages from the printer. The Promotional Sets will be offered at auction and are expected to sell at approximately the indexed value of 100 MR$ (or $115.64) plus shipping, handling and insurance.

 

                     5.      Merchant’s Sets:

 

            Inasmuch as we are offering the MR$ products at auction, and/or through distributors at a price comparable to the winning auction bids; we are offering a larger set of Millennium Dollar® notes for merchants. We call this the Merchant Set, which will include 75 Hamilton notes with a range of notes per denomination, as follows:

                          Denomination:             Notes:                         Total:

    2                   

                                   1 MR$                   38                      38 MR$

                                   2 MR$                     1                        2 MR$

                                   5 MR$                     6                      30 MR$

                                 10 MR$                     8                      80 MR$

                                 20 MR$                   15                     300 MR$

                                 50 MR$                     3                     150 MR$

                               100 MR$                     4                     400 MR$

 

                                                Total:        75                  1,000 MR$

 

The Merchant’s Set offers a range of notes designed to meet the probable distribution of MR$ notes from a merchant’s cash register during the course of business. Certainly, the Merchant’s Set may also meet the needs of other customers as well. Merchant’s Sets will be offered at auction and are expected to sell at or near the indexed value, which on September 1, 2005 would be: 1,000 MR$ x 1.156361 = $1,156.36 plus shipping, handling and insurance.

 

                      6.      Store of Value Sets:


The Store of Value Set is for those who wish to hold Millennium Dollar® notes as a store of value, or for the purpose of engaging in larger financial transactions. The Store of Value Set will offer one hundred 100 MR$ notes, which will still be in the shrink-wrapped package from the printer. The Store of Value Set is expected to sell for about 10,000 MR$ or $11,563.61 plus shipping, handling and insurance. Please note that any sale approaching $10,000, or higher, will be reported to the proper authorities in accordance with the law. As such, Millennium Dollars® should not be used for money laundering or other illicit purposes

 

         7.      Specimen Sets:              


The Specimen Set includes seven notes (1, 2, 5, 10, 20, 50 & 100 MR$). The Specimen notes are identical to the regular Millennium Dollar® notes; except that, they are stamped SPECIMEN in red ink over the serial numbers. In addition, the Specimen notes will have two holes punched at the top of the note. Specimen notes will not be backed by present value assets and are not eligible for conversion into United States dollars (USD)


Our purpose in offering the Specimen notes is to provide customers with a relatively cheap replica of the MR$ notes by which they can learn to spot counterfeit notes. Initially, the Specimen Sets will be offered at 5.00 MR$ per set; plus shipping, handling and insurance.

 

                      8.      Specimen Packets:


The Specimen Packet will contain twenty-five 1 MR$ Specimen notes, which are priced at 10 MR$ (or $11.56) plus shipping, handling and insurance. Each Specimen note is stamped in red with “SPECIMEN,” and is punched with two holes at the top of the note. Specimen notes are not secured by present value assets and are not convertible into USD. These notes are provided as an alternative means of promoting the introduction and use of the Millennium Dollar®.


Shipping, Handling & Insurance:


There will be shipping, handling and insurance charges on each product sold. The shipping and handling charges will be set forth in each e-Bay auction. The primary delivery services will not offer to insure the shipping of money; hence, we have initiated a self-insurance program. Every product shipped by the sponsor will be covered by our insurance program. The insurance will be explained at our e-Bay auctions, or the insurance program can be reviewed on this Web site. Please see: Insurance Program.


Questions?


If you have any questions, then please feel free to contact us at: USD@MillenniumDollar.com.

 

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