This account is non-transferable.

Interest Rate
This is a fixed interest rate account. You will be paid the same mentioned rate until maturity, as long as you meet the minimum balance requirements.

Frequency
Interest will be calculated on a SIMPLE interest basis. Interest will not accrue on interest until interest is credited to the account. Interest will be credited to your account monthly.

Minimum Balance Requirement
You must deposit $10,000 to open this account.

To Obtain the Annual Percentage Yield Disclosed
You must maintain the required minimum balance in the account each day to obtain the disclosed annual percentage yield. Annual percentage yield assumes principal and interest remain on deposit at the some rate for one year.

Balance Computation Method
We use the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of Interest on "Non-Cash" Deposits
Interest begins to accrue on the business day you deposit "non-cash" items (for example, checks or wire).

Deposits
All deposits will be evidenced by a receipt. All Internet CD's will also receive a monthly statement by mail.

Fees
There are no minimum balance fees assessed against a certificate of deposit account.

Transaction Limitations
You may not make deposits to or withdrawals from this certificate of deposit account until the maturity date or during the 7 day grace period. Under certain promotional CD offerings, one additional deposit may be allowed during CD term. Additional deposit allowances, if applicable, will be noted in your CD passbook contract.

You may request in writing to have accrued interest automatically debited from your account each month by check. La Jolla Bank will mail you a check at the end of each month except for the month in which your CD matures. The month in which your CD matures, accrued interest will be automatically credited to your account on the maturity date.

Withdrawal of Interest Prior to Maturity
The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings. If you request tax deferred status, a withdrawal of interest before the maturity date or year end, will stop tax deferred status. Interest will be reported for the tax year in which it is withdrawn.

Early Withdrawal Penalties
We will impose a penalty if you withdraw any or all of the principal before maturity date. The fee imposed will be determined by the following schedule. The actual number of days in the stated period will be used.

CD term of 1 day - 180 days:	One month loss of interest, accrued or not.
CD term of 181 days - 365 days:	Two months loss of interest, accrued or not.
CD term of 366 days - 730 days:	Three months loss of interest, accrued or not.
CD term of over 730 days:	Six months loss of interest, accrued or not.

Renewal Policies
This account will automatically renew at maturity. The account will be renewed for the same term at the current rate on your maturity date. You will have seven (7) calendar days after the maturity date to withdraw funds without penalty.