INVESTING THROUGH RETIREMENT ACCOUNTS

					              INVESTING THROUGH RETIREMENT ACCOUNTS

General

While most people are aware that IRAs, SEPs, Keogh's (HR-10s) and other types of retirement
plans may be invested in areas other than insured bank deposits, including real estate, listed
and non-listed stocks, mutual funds and bonds, many are not aware of their ability to invest in
the sale of new bank stock. This misunderstanding or confusion is due in large part to the fact
that many of the larger retirement plan sponsors resist such investments for a variety of reasons
- general policy or the fact that they don't receive a commission for placing the investment, for
example. In fact, in face of the resistance from these managers, one might reasonably
conclude that this investment was, at best, marginally acceptable and, at worst, somewhat
illegal. This, simply put, is not true!

The laws, rules and regulations governing self-directed retirement accounts do not distinguish
IPOs or new bank stock as any more or less acceptable than any other potential investment. It
is solely up to the individual making the investment to determine the relative risk/return of any of
the investment options open to them. In fact, many of the recent new bank stocks have found
that a significant percentage of their offerings have been subscribed through retirement
accounts.

Now that the misunderstanding some may have regarding the ability to invest in new bank
stocks through their retirement plans has been addressed, it is important to note some of the
more commonly asked questions as to how this investment is accomplished (assuming, of
course, that you have decided that this investment makes sense for you).

This information is not intended, and should not be regarded, as legal or financial advice
regarding the use of your retirement plan for the purpose of purchasing shares of El Camino
Bank (In Organization). As with all transactions involving the use of your retirement funds, you
should consult with your accountant, financial and/or tax advisors in connection with an
investment in the bank’s securities. The information contained herein is not an offer to sell the
securities of El Camino Bank (in Organization). Please read the offering circular for information
regarding the offering.

Questions & Answers

May an investment in a new bank stock be made through any retirement account?

       No, only a self-directed retirement account without specific restrictions against
       investing in new bank stock may be used.

       Keep in mind, however, as briefly addressed above, the sponsor may have other
       reasons to resist this investment. If you encounter these difficulties, contact
       other, possibly smaller plans, which would likely be more interested in service
       and the overall relationship than the individual transaction (commission). Finally,
       of course, the issuer of the new bank stock would be most helpful in referring you
       to a reputable self-directed retirement plan sponsor, which would have no trouble
       processing this investment.
Okay, I'm convinced and I've opened my self-directed retirement account. How do I buy the
new bank stock from the public offering and get it into the account?

       What you don't do, as your plan manager will tell you, is buy the new bank stock
       first! You need to put funds into your retirement account either by making a
       qualified contribution or by transferring the funds into the account from another
       qualified plan. You cannot buy the stock personally and then transfer it to the
       retirement account.

To transfer funds from my already existing qualified plan, must I close it?

       No, you may have as many qualified plans as you want, with different custodians.
       This does not, however, increase the amount of your maximum annual
       contribution.

Okay, my money is in my self-directed retirement plan. What do I do now?

       Notify your retirement plan manager that you want to invest in new bank stock
       and advise him/her of the number of shares you wish to invest. Be sure to take
       notice of the minimum number of shares required to invest in the new bank stock
       and the amount of money available in your self-directed retirement account: You
       then fill in (on the Subscription Application) the number of shares you want your
       plan to purchase and deliver it to your plan manager with the Offering Circular
       (prospectus). Some also provide subscribers with a Broker Instruction Letter. If
       provided, you should complete the form and deliver it to your plan manager. As
       an alternative, the issuer of new bank stock will usually be more than happy to
       have a copy of the Offering Circular and Subscription Application delivered
       directly to the retirement plan manager on your behalf.

What happens if the new bank stock is not successfully completed?

       Your investment funds are returned to your retirement plan, in some cases with
       interest or deduction for expenses incurred in investing such funds.

When the new bank stock is successfully completed, do I receive a stock certificate?

       No, your investment is held in "street name" (the name of the broker/retirement
       plan) on your behalf. Periodic updates will be sent to you from this source based
       largely on information they receive from the company (new bank stock issuer).

       It is very important that you notify directly the new bank stock issuer of your
       investment along with your address (and phone number if you feel comfortable
       doing so). While this is not in any way legally required and does not affect the
       integrity of your investment, it will expedite your receipt of information regarding
       the company and increase their recognition of you.

What if I have other questions?

       Ask your plan manager. On a specific new bank stock, the new bank stock issuer
       can also be most helpful.

				
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