Colorado Currency Trading Policies and Procedures

Policies and Procedures. The Trade Membership Agreement and Policies and Procedures, a copy of which the Member has received, are incorporated herein and made a part of this agreement. Colorado Currency may also be referred to as CC throughout this agreement. Member will also be referred to as Trader throughout these policies.


Nature of the Parties. CC will act as a third-party record keeper of transactions between Traders, and as a clearinghouse to direct Traders to each other. Trader grants CC the exclusive right to regulate the exchange and make decisions in its judgment deems necessary.


Nature of the Trade Dollar. Trade dollars shall not be considered as legal tender, a commodity or a security by either CC or its Traders. Trade credits are not negotiable as cash. For tax purposes, bartering is equivalent to a cash sale and subject to IRS 1099B reporting. Use of trade dollars is a taxable event and each member is solely responsible for reporting all applicable local, state and federal taxes resulting from trade transactions. CC must be informed of any change in a member’s legal tax name/number status. It is understood and agreed that Members may not be considered a creditor of CC or the exchange in relation for a Member’s ability or lack thereof to utilize or spend trade dollars in their account. Member acknowledges that trade dollars in the barter system (positive balances) are the liabilities of persons/companies who have spent more than their earnings (negative balances); that there is a creditor/debtor relationship between such persons, and that trade transactions incur the normal business risks associated with any credit transaction. As a general rule, trade dollars are the liabilities of

Members who owe the barter system, and not of Colorado Currency, which is solely liable for its own indebtedness. Colorado Currency is authorized to establish a bad debt reserve fund by charging all accounts on a regular basis an amount in trade dollars to be paid into such a fund. Any positive balances abandoned or surrendered by former members in accordance with the Rules may also be paid into the reserve fund. Further, member grants CC and its officers and directors the authority to regulate and control the amount of outstanding trade dollars in the barter exchange and to borrow and spend trade dollars in accordance with best practices and recommendations established by the National Associations of Trade Exchanges.


Trade Transactions. Trade transactions between Traders are entered into on a voluntary basis. Traders will sell goods and/or services, for trade credit, at their prevailing market prices. Traders will sell at a minimum the first $5000 worth of goods and or services, per transaction, for 100% trade at their prevailing price. Trader may collect cash for the difference between the purchase amount and the amount authorized. CC is due their normal service fee from the seller on any cash collected from a CC trader, excluding sales tax. All Traders are independent of CC. CC bears no responsibility for the quality of products or services, timely delivery, prices or warranties, or any disputes that arise from transactions. CC shall be held harmless on all transactions. Disputes between Traders will be arbitrated by CC upon request of either Trader in the dispute. The decision of CC shall be final in all cases. Upon written request of a Trader, CC may stop payment of trade funds payable to another Trader for a period of up to 30 days after a particular transaction. CC will place such funds in an escrow account with the buyer’s account remaining debited until the dispute is resolved by CC. Member acknowledges that the sole principals in any trade are the buying and selling parties; and that CC is not the agent of any member nor the guarantor of any transaction or trade dollar.


Trade Authorizations. All transactions must be approved by CC prior to sale and have a purchase authorization number assigned to each transaction. CC is not responsible for transactions that have not been authorized. Seller must maintain copies of authorized CC vouchers to be able to produce upon demand to verify transactions. The seller is responsible for acquiring the purchase authorization for any sale, and securing the buyer’s signature on the CC trade voucher. Seller may alternatively use any paperwork which they use in their normal course of business to verify a transaction.


Monthly Accounting. Cash and trade fees are due and payable upon authorization and are billed monthly for convenience. Cash fees are due and payable on the 10th of each month. Cash fees that remain unpaid after 30 days will result in a member’s account being suspended and all trades will be refused until payment is made. After 90 days in suspension a member’s account may be closed without notice and any trade balance forfeited. Trader must notify CC in writing of any contested charges or discrepancies in monthly statements within ten days of the receipt thereof. Failure to give such timely notification shall constitute a waiver by the Trader of any right to contest the accuracy of the statement.


Suspension and Cancellation of Trading Privileges. CC reserves the right to cancel membership, to freeze Trader’s account without notice, and to terminate a Trader’s trading privileges for non-fulfillment of any provisions of the Trade Agreement, or Trading Policies and Procedures. Trader agrees that CC’s discretion in all such matters is final. If a member’s fees become 30 days past due, CC has the right to require fees be paid in advance of spending. Member accounts may not be assigned, transferred or sold without prior consent of CC. CC trade dollars may not be sold without prior consent of CC.


Termination. Membership in CC may be canceled by a Trader upon written notice of cancellation. Membership shall be canceled when all fees have been paid in full. Trader shall not be entitled to a refund of any fees paid prior to cancellation.


Contact Permission. Member gives CC permission to send trade offerings and related advertisements via email, fax, USPS on a regular basis.


Cancellation. In the event of a Trader’s withdrawal or termination from CC, all past due and current fees must be paid within 10 days of withdrawal or termination. Members who have stopped selling their product or service permanently fall under this definition. Traders will have 90 days from the date of withdrawal or termination to spend their remaining balance, but only after payment of prepaid service fees and accounting fees. If fees are not paid within 10 days, Trader’s balance shall be forfeited to CC. After 90 days, Trader may maintain a balance at a cost of $15.00 cash per month payable in advance. Past due fees will be turned over for collection after 90 days. If a member has a negative trade balance, the member has 90 days to pay their account with acceptable products or services. After the 90 days, the Member must pay the barter exchange any remaining deficit balance with a payment having an equivalent value. The payment must be acceptable to Colorado Currency and have easily determined value. In the event the member’s account is terminated, the barter exchange retains complete reservation of rights to recover Member’s deficit trade balance in law and equity.


Liability of Trade Dollars. Member acknowledges that trade dollars in the exchange are the liabilities of members who have spent more than their earnings and that there is a creditor/debtor relationship. Trade dollars are the liabilities of members who owe the exchange. Negative trade balances in any other accounts, such as debt reserve, conversion accounts, member loan accounts, acquisition of deficit spent barter groups, or other situations that may occur are not the responsibility of CC. CC is liable solely for indebtedness of its own operating account.


Bad Debt Reserve. Members agree to establish a trade dollar bad debt reserve fund by paying a monthly interest charge on member negative trade balances. This Fee will automatically be deducted from the Members’ account each month. Such trade funds shall be deposited in a bad debt reserve fund to offset losses in the TE system.


Member Insolvency/Bankruptcy. If Member files bankruptcy, Member agrees that CC shall suspend trading until all cash fees are paid, and may either file a secured claim, terminate the account, or take other legal action without being required to move for relief from stay.


Direct Trades. Trader will not attempt to do a direct trade with another CC member as long as either trader is a member of CC. Trader agrees that CC will charge their normal commission on any direct trade, cash purchase, or trade transaction, or that is diverted to another barter company if either party is a member of CC. CC may also terminate a Traders account or pursue civil liability in the event Trader attempts to do a direct trade with another CC member.


Trade Dollar Loans. Members grant Colorado Currency the right and power to make trade dollar loans to any Member on terms and conditions consistent with Member’s creditworthiness and ability to repay. The exercise of this power shall be at the sole discretion of management with regard to principal, interest, terms and conditions, lending policy, and other particulars. Colorado Currency reserves the right to require exchange member’s to complete a formal loan agreement, request financial statements, credit history and collateral prior to loan approval. Colorado Currency is under no obligation to extend credit at any time. Colorado Currency will use its best efforts to ensure timely repayments of principal and interest, appropriate collateralization, and perfection of security interest in all loans. Any account with a negative balance will be charged up to 1% per month in trade. While operating under a trade dollar loan, Member must accept all trade sales at 100% trade until such loan has been repaid. Trade dollar loans will not be authorized unless Member is paying their fees with a credit card.


Member Account Inactivity Charge. Any Member whose account remains inactive with no buying or selling activity for a period of six months will incur an inactivity charge of 1% of their balance or a minimum of $25 trade.


Trade Requests. All trade requests for travel, goods and services that are fulfilled by CC but not purchased by the requesting member may be subject at CC’s discretion to a research fee up to the value of the commission if such request was purchased.


Overpricing. All products and services are to be traded at fair market value or everyday selling prices. CC has the right to investigate claims of overpricing. Violations of overpricing subject the member to immediate termination. CC with advance documentation from the Member, may allow special pricing for low margin items.


Proprietary Information. Members agree that all Member directories, address lists, email lists, offerings and communications by email, fax, mail or any other form of communication are proprietary to CC and its members only. Unauthorized distribution to any non-member of CC or to any competing trade group is a breach of this agreement. Access to the client portion of the CC website is for CC members only. Members agree to not share their log in with anyone. Such violation will result in termination of membership in CC. Further, any unauthorized use of a CC membership list by a member for purposes of soliciting sales, donations or contributions of any kind is a breach of this agreement.


Colorado Currency Scrip Dollars. Colorado Currency Scrip Dollars are proprietary to CC members, their families and employees only. They cannot be sold or traded to others including other trade exchanges without written authorization of CC. Unauthorized sale or trading of Colorado Currency Scrip Dollars is grounds for immediate suspension of your account and possible forfeiture of the account balance.


Attorneys Fees and Costs. In the event CC incurs any costs or legal fees to enforce any of the provisions of the Trade Membership Agreement or these Trading Policies and Procedures, the Trader agrees that reasonable costs or legal fees shall be assessed against them.


Disclaimer of Liability. By signing the CC Trade membership Agreement and Trading Policies and Procedures, Member agrees to participate in the barter exchange; and hold harmless and defend CC in respect to any claim, debt or liability arising out of any transaction of which the Member is a buyer or seller. This includes, but is not limited to product liability, contractor disputes, malpractice claims, etc. Member acknowledges that all trade transactions are entered into voluntarily.


Modifications of Policies and Procedures. CC reserves the right, upon 30 days written notice, to modify its terms, policies and procedures, and conditions for trading and accepting new Traders. CC may from time to time publish bulletins or directives containing modification or additions to these policies and procedures by which Trader agrees to abide by.


Severability. If any term of the Trade Membership Agreement, or these Policies and Procedures is judged unenforceable it shall not affect the enforceability of the remaining terms.