A method for facilitating the distribution of physical restricted
securities to a set of participants comprises receiving from an
originating entity, such as a venture capitalist, a distribution package.
A transfer agent is given temporary custody of the restricted securities
and delivery instructions are provided to the transfer agent. Because the
transfer agent has custody of the securities while they are still in the
name of the originating entity, it can perform distributions of the
restricted securities in accordance with incrementally delivered
instructions and does not need to terminate the entire distribution if
the instructions for a particular participant are incomplete or
inconsistent. A system for gathering distribution instructions from
participants and delivering the instructions to a facilitator is also
disclosed.