BerkShares Issue and Duration
 
September 2006

Dear Friends,

As you know, BerkShares are placed in circulation when citizens exchange federal dollars for BerkShares at any of the BerkShares Exchange Banks.  Some restrictions may apply.   The exchange rate is currently ninety cents per BerkShare.  Ninety federal dollars will yield one hundred BerkShares.  BerkShares are printed in 1, 5, 10, 20, and 50 denominations.
 
The federal dollars remain on deposit at the BerkShares Exchange Banks to redeem excess BerkShares at a ten percent discount.  One hundred BerkShares can be exchanged for ninety federal dollars.
 
The 2006 issue of BerkShares is designed to end after one year.  In June of 2007, BerkShares, Inc., with input from participating banks and businesses, will evaluate the circulation of the local currency. If exchange in BerkShares is vibrant then the program will continue and citizens may use their BerkShares for another year.
 
Otherwise, trade in BerkShares will terminate on September 30, 2007.  Those with BerkShares in hand will have until December 31, 2007 to exchange their BerkShares for federal dollars at designated BerkShares Exchange Banks. The federal funds will no longer be available for redemption of BerkShares beyond the December 31, 2007 date. Federal dollars remaining in BerkShares accounts after that date will be donated to the South Berkshire Fund of the Berkshire Taconic Community Foundation as a charitable contribution. The Foundation will use the donated funds exclusively to make grants to community groups in the Southern Berkshires.  Berkshire Taconic (www.berkshiretaconic.org <http://www.berkshiretaconic.org> ) is a trusted vehicle for responsible philanthropy in the region and has an established procedure for soliciting, evaluating, making, and overseeing grants.
 
Public notice of the decision of whether or not to extend the BerkShares program will be in local press and at the BerkShares website in July of 2007.  Please note, it is the intent of BerkShares board of directors to continue the program indefinitely.  BerkShares are placed in circulation as a tool for citizens to support regional businesses and together build a sustainable local economy.  The success of the program will depend on all of us!