NOTICE: This is a legal contract that, among other things, describes your responsibilities and limits our liabilities. Please read it carefully.

1. Parties
Liberty Numismatics or any use of the first person plural, such as "we," "our," or "us," means Liberty Numismatics Inc., the distributor of the Liberty Dollar in digital warehouse receipt form (hereinafter ELD) and the provider of the Internet based Digital Warehouse Receipts payment system. "Account Holder," "Holder," or any use of the second person singular, such as "you" or "your" refers to any user of the digital services provided by Liberty Numismatics. "Web site" means the http://www.LibertyDollar.org URL site or any other site operated by Liberty Numismatics.

2. Agreement
After due considerations on the part of both parties, this "Terms of Service" contract is offered by Liberty Numismatics and is hereby accepted when the "Yes, I agree" button is clicked at the bottom of this contract by the Account Holder

3. Digital Warehouse Receipt Account
In agreement with the terms and conditions as defined below, the Account Holder hereby agrees to open a Digital Warehouse Receipt Account (hereinafter DWRA or "account") with Liberty Numismatics for the express purpose of exchanging Federal Reserve Notes into eLD and using the eLD as a private voluntary barter currency.

4. Username and Passcode Policy
The Username and Password are the keys to your DWRA and access to your eLD stored within our system. Your Password is case sensitive, must contain at least one (1) number and a minimum of eight (8), a maximum of thirteen (13) characters of letters, numbers and symbols. Your Password should be a code and not a phrase. You will be assigned your Username and must establish your own Password. You will be asked for the answers to two hint questions in association with your Username in order to verify your account at the time you open your DWRA to verify you account if you ever lose your password. It is our responsibility to maintain your Username and Password confidentiality within our system. It is your responsibility to maintain Username and Password confidentiality outside of our system. Please take whatever measures, which you feel necessary, to ensure that you do not lose your Username and Password. You hereby acknowledge and accept that anyone's knowledge of both your Username and Password constitutes granting de facto power of attorney to them over your account. Please note that no one at Liberty Numismatics will ever ask you for your Password. Please alert us if anyone claiming to be from Liberty Numismatics ever asks you to identify your Password.

5. Privacy Policy
We will not release your information to any third party without your consent or unless compelled by a court order from a competent jurisdiction or as a result of the dispute resolution processes. We will attempt to inform you of any initiation of such a legal inquiry.

6. Currency Exchange
You agree to read, understand, and accept the established procedures as posted on the Web site before placing an order to exchange Federal Reserve Notes (USD) for eLD with us or using the eLD payment system. You further understand and agree to be bound by the prevailing Base Value of the eLD at the time of each transaction. All funds must be received by Liberty Numismatics prior to any exchange from USD into eLD. Payment of USD may be made in cash, checks, money orders, bank wire, credit cards, EFT, ACH and by any other form as may be defined as acceptable from time to time and posted on the Web site by Liberty Numismatics. Any attempt to use fraudulent funds, money from illegal activities, or for the purpose of laundering such funds will result in notification to the general public of your actions by any means we wish and that this action supersedes any privacy policy or these Terms of Service.

7. Terms to Open an Account
A free account may be opened without any funds by providing your name, social security number, address, phone number, email address and creating a passcode.

8. Fees
All fees are disclosed on the Web site. We reserve the right to assess and collect fees for our services. We further reserve the right to change our fees at any time and at our sole discretion.

9. Right of Association
We reserve the right to refuse an account or services to any particular Account Holder or applicant for an account, at any time, with or without notice, at our sole discretion, with or without cause, and to suspend, freeze or terminate any account at any time, with or without notice, at our sole discretion, with or without cause, for the protection of Liberty Numismatics and the eLibertyDollar.

10. Valuation of Silver Backing
Currently, each eLD with a Face Value of $1.00 (one Liberty Dollar) is backed by one-twentieth Troy ounce of .999 fine silver and any fraction of a dollar is likewise backed by an appropriate prorated amount of silver. The valuation of the eLibertyDollar is identified on the Web site as "$20 SILVER BASE." When the market price of silver rises or falls so as it is no longer possible for Liberty Numismatics to provide an $1.00 (one Liberty Dollar) in eLD that is backed by one-twentieth Troy ounce of .999 fine silver, Liberty Numismatics may at its sole discretion, raise or lower the valuation of eLD so that the currency is still 100% backed by physical silver in the warehouse.
Please note that the eLD Moved Up from the $10 Silver Base to the $20 Silver Base on November 24, 2005, in response to higher silver prices. It is now projected that the eLD will Move Up to the $50 Silver Base on Easter Sunday, March 23, 2008.

11. Silver Storage
All eLD balances are physically backed by one ounce .999 fine silver for every $20 eLD and accumulative fraction thereof. The silver is stored at a Private Location. We may change, add, move, or discontinue the silver storage facility at our discretion, provided that all silver denominated balances remain 100% backed by physical silver in an allocated storage.

12. Silver Audit
The amount of silver that backs the eLD is audited every month and checked against the Daily Transaction Report so that at no time within the month, is the eLD distributed in excess of the amount of silver. The audit certifies that the total amount of eLD in the system is 100% backed by silver and no eLDs are issued without being 100% backed with .999 fine silver.

13. Redemption of the digital Liberty Dollar
eLibertyDollars may be redeemed into Silver Libertys on demand after payment of fabrication and overhead cost that may vary depending on the size. Redemption is by the "Redeem" tab and entering the Face Value amount in Liberty Dollars for each denomination. Your total amount including the fabrication and overhead costs will be calculated. Click "approve" and your order will ship within 30 days. Please note that when the eLibertyDollar is in the slot to Move Up to a new Silver Base, the first redemption may commence 60 days after the Move Up. Shipping and handling fees will apply as defined on the Web site.

14. Exchange of digital Liberty Dollar for US dollar
eLibertyDollar can be exchanged for US dollar at spot market rate as specified on the eLibertyDollar site. Account Holder agrees to abide by the terms and conditions as posted from time to time.

15. Non-Repudiable Payment System
The eLD denominated in Liberty Dollars may be voluntarily transferred between any two parties provided that the payee is an "Account Holder." Minimum amount that can be transferred is one hundredth ($0.01) eLD and the maximum amount that can be transferred is ten thousand ($10,000) eLD. The recipient of the transfer must accept the payment into an account. If the recipient does not accept the transfer within 30 days of the payment, the amount automatically reverts back to the account of the payee. Transaction fees may apply for using the Liberty Numismatics payment system as identified on the web site. It is the responsibility of the payee to pay the transaction fee at the time the eLD is transferred. All currency exchanges from USD to eLD or use of the eLD is final, not reversible, and cannot be repudiated.

16. Transfers Made by Liberty Numismatics to Your Account
All currency exchanges from your USD into eLD will be executed within 24 hours. It is your responsibility to accept the eLD into your account within 30 days. If you do not accept the eLD from Liberty Numismatics within 30 days, the eLD are returned to Liberty Numismatics and held for you for one year. If you have not requested your funds be transferred for a year, you lose your right to those funds.

17. Indemnification
You agree to indemnify and hold us, our affiliates, officers, directors, agents, consultants and employees harmless from any claim, action, demand, loss, or damages (including attorneys' fees) made or incurred by any third party arising out of or relating to your use of the Web site, the eLD or its payment system.

18. Disclaimer of Responsibility for External Systems
We will make reasonable efforts to ensure that orders involving other systems, including but not limited to the banking system, postal system, and other payment systems, are processed in a timely manner. However, we make no representations or warranties regarding the performance of any system outside our control, and disclaim any responsibility whatsoever for processing delays associated with systems outside our control. We are not liable for any actual or consequential damages arising from any claim of delay, except as otherwise provided in these Terms of Service.

19. Web Site Interface
We will provide and maintain a cryptographically secure self-service online user interface. This interface is available for you to place orders over the web site at all times, except during scheduled maintenance, and unforeseen emergencies.

20. Intellectual Property Policy
We retain all right, title, and interest in and to all trademarks and copyright. You may only use our trademarks with our express permission.

21. Third Parties
We reserve the right to appoint third parties to fulfill specified roles, at our discretion.

22. Dispute Resolution
Any unresolved dispute will be settled by each party appointing one representative: the two representatives will jointly appoint a third representative and the three representatives will resolve the dispute, preferably through unanimity but may resort to majority vote if necessary. Their resolution will be binding on both parties without appeal. The physical presence of the parties at the dispute resolution will not be required. Should either party fail to respond to a call for dispute resolution within thirty (30) calendar days, the representative of the other party will have the right to call on an inter-pleader to render a decision binding on both parties without appeal. This provision supersedes all other provisions, privacy policies, and the Terms of Service.

23. Jurisdiction
These Terms of Service are governed by the laws of the State of Nevada, USA

24. Tax Consequences
You acknowledge and agree that any tax consequences on any transactions processed by Liberty Numismatics or through your use of the eLD are your sole responsibility.

25. Not a Bank
You acknowledge and agree that we are not a bank, that accounts are not insured by any government agency, and that the Liberty Numismatics Web site is not subject to banking regulations.

26. Not an Investment
You acknowledge and agree that as we only provide warehouse receipts and a service to transfer them. You further acknowledge that we do not provide any investment instruments or investment opportunities, and that neither the ELD nor the Liberty Numismatics Web site is not subject to security regulations.

27. Force Majeur
Failure on our part to exercise or delay in exercising any right, power or remedy does not mean that we have waived that remedy. No single or partial exercise of any of our rights, powers or remedies precludes any other or future exercise of that or any other right, power or remedy.

28. Assignment
The provisions of these Terms of Service will be continuous and shall ensure to our benefit and that of our successors and assigns and are binding upon you and/or your estate, personal representatives, administrators and successors.

29. Severability
In the event that any provisions of these Terms of Service are determined by dispute resolution or a court of competent jurisdiction to be unenforceable, such provision will be unenforceable in that jurisdiction and the remainder of these Terms of Service will remain binding upon the parties as if such provisions were not contained therein. The enforceability of such provision shall otherwise be unaffected and remain enforceable in all other jurisdictions.

30. Entire Agreement
These Terms of Service constitute the entire contract between you and us and are intended as a complete and exclusive statement. These Terms of Service supersede all other communications between you and us. These Terms of Service may be amended from time to time. We will notify you through the web site of any changes to the Terms of Service. Your continued use of the Web site, products and/or services acknowledges your agreement with those changes.

21. Escheat
If you do not access your account for a period of five (5) years, your ELD will be transferred to Liberty Numismatics pending your subsequent access to the account. If you do not access your account for an additional period of five (5) years you account will be closed without any further recourse.

32. Eligibility
You acknowledge that you are over eighteen (18) years old, that you are in control of your own affairs and that you have read and agreed to these Terms of Service.