In recent years public funding for the arts and humanities has experienced substantial cutbacks with the consequence that vital programs that support artistic expression and humanitarian activities in the United States have lost ground.

First Creative Foundation (FCF) is in the process of being formed as a 501(c)(3) tax-exempt organization separate and apart from the bank to support artistic expression and humanitarian activities of interest to the Creative Community of the United States.

The bank and FCF will have separate Boards of Directors, however, one or two Directors may sit on each of the Boards. FCF's Board will be responsible for overseeing day-to-day administration of the foundation, as well as establishing and periodically reviewing the grant-making guidelines.

The bank is being organized in part to help address the desire to establish a totally independent, economically sound commercial banking institution designed to provide financial products and services in support of the financial health and well being of the Creative Community. It aspires to be more than a banking institution by supporting sustainable funding of artistic and humanitarian activity administered through the proposed First Creative Foundation.

It is intended that First Creative Foundation will be organized in a fashion similar to most traditional foundations. We expect that application guidelines, submission, review and gifting procedures will be set by the Chief Executive of First Creative Foundation under the direction and oversight of a strong Board of Directors.

It is anticipated during the initial growth years, the bank will not generate significant revenues to the Foundation. Accordingly, the Foundation will aggressively pursue a well-designed fund raising donor program to begin its granting activities. In addition to the donor program, other entrepreneurial income generating activities will be established by the Foundation to support its early gifting program.

First Creative Capital intends to organize the capitalization of the bank and the foundation through a tax advantaged investment whereby the investors will make a contribution of stock to FCF, and take a tax deduction for the contribution. The effect of the transaction will be for FCF to hold approximately 10% of the common stock of the bank and will receive its pro-rata share of dividends when declared by the bank's Board of Directors, subject to sound banking practices approved by bank regulators. These dividends will create a sustainable source of funding to the Foundation in support of the Creative Community.

Once the bank becomes profitable, it is also intended that up to 10% of the bank's pre-tax net income will be donated to First Creative Foundation on an annual basis subject to the approval of the bank's Board of Directors and any necessary regulatory approvals.

FCF will establish a blue chip fund-raising-donor-program to increase its endowment during the initial growth years to support its grant programs. The Foundation will aggressively pursue a well-designed fund-raising-donor-program to begin its granting activities, and will adapt an entrepreneurial business approach to generating income from its activities to support its gifting programs.

The bank and First Creative Foundation aspire to demonstrate their value to the Creative Community and to play a significant role in support of artistic and humanitarian activities of interest to the Creative Community of the United States.