Disclosures

Internet Banking, Mobile Banking, and Bill Pay Agreement

The first time you access your account through Internet Banking, you agree to be bound by the terms and conditions of the Internet Banking Agreement (“Agreement”) and acknowledge its receipt and your understanding of its terms.

Introduction

Through Internet Banking, you can manage accounts to which you are authorized from your home or office on a personal computer. Internet Banking can be used to conduct any of the following “On-line Financial Services”.

Obtain balances and transaction histories on all accounts to which you’re authorized (All account balances and transaction histories reflect activity through the bank update from memo posting);
Transfer money between those accounts (The number of transfers you can make from an account is limited as described in the applicable account agreement.
In addition, if a hold is placed on any funds deposited in an eligible account you may not transfer the portion of the funds being held until the hold expires). You are responsible for the installation, maintenance, and operation of your Computer, browser and software.
FNB is not responsible for any errors or failures from any malfunction of your Computer, the browser or the software.
FNB is also not responsible for any Computer virus or related problems that may be associated with the use of an online system.

The Service

Access to Internet Baking will not be effective until all information on the signed Internet Banking Enrollment form has been verified and approved by FNB. To use Internet Banking, you must have at least one FNB personal account and an Internet Banking Password. Through Internet Banking, you will have access to any of your FNB share accounts or loan accounts. FNB reserves the right to deny access to a deposit account or loan account or to deny transactions under certain circumstances. You authorize FNB to act on instructions received through Internet Banking under your password and without inquiring into the identity of the person using that password. However, do not, under any circumstances, disclose your password by telephone or to anyone claiming to represent FNB; The Bank’s employees do not need and should not ask for your password. You are liable for all transactions made or authorized using your password. FNB has no responsibility for establishing the identity of any person using your password. If, despite FNB’s advice, you give your password to anyone, you do so at your own risk since anyone to whom you give your Internet Banking password or other means of access will have full access to your accounts even if you attempt to INTERNET BANKING, MOBILE BANKING, AND BILL PAYMENT AGREEMENT Introduction The Service limit that person’s authority. You must notify FNB that your password has been lost, stolen or otherwise compromised and should not be honored and must be disabled. FNB cannot be responsible for customer errors or negligent use of the Internet Banking Services and will not cover losses due to:

• Input error or misuse of the Internet Banking Services.
• Leaving a computer unattended during an Online banking session–click “Sign Off” to end your session.
• Failure to report known incidents of unauthorized account access within 2 business days of the account access.

Data Recording

When you access Internet Banking to conduct transactions, the information you enter may be recorded. By using Internet Banking, you consent to such a recording.

First National Bank of Manchester Internet Banking and Bill Pay Help

FNB’s Internet Banking and Bill Payment Help document details how to operate the FNB Internet Banking and Bill Payment System. As part of this agreement you agree to become familiar with the information contained in the FNB Internet Banking and Bill payment Help document prior to using the FNB Internet Banking and Bill Payment service. FNB Internet Banking and Bill Payment Help document may be reviewed online and may also be accessed during your Internet Banking session by clicking the Help button. All information contained in the FNB Internet Banking and Bill Payment Help document and any updates to it are part of this Agreement.

Services

FNB Internet Banking and Bill Payment allow FNB customers to access information for and initiate transactions from their FNB accounts. Such services include but are not limited to the following:

1. View account information for checking, savings, certificate of deposit, IRA’s, Club Accounts and loan accounts. (*These features are limited to the extent, and subject to the terms, noted below.
2. Transfer funds between linked FNB accounts.
3. Schedule payments to non-FNB payees in the United States. You should allow at least (5) business days between the date you have scheduled your payment to be processed and the payment due date.
4. Modify/Cancel payments scheduled in advance.
5. Report account problems, request information, or order changes to account information or services via a secured communication channel.

*Your ability to transfer funds between certain accounts is limited by federal law and the Deposit Agreement. You should refer to the Deposit Agreement for legal restrictions and service charges applicable for excessive withdrawals or transfers. Transfers made using the Internet Banking Service are counted against permissible number of transfers described in the Deposit Agreement.

There may be at least a one-business-day delay in transferring funds between your accounts. Except as provided in this Agreement, all Internet banking transaction instructions received by 2:00 will be completed that business day. Any instructions received after 2:00 p.m. will be completed the next business day. Data Recording Services First National Bank Internet Banking and Bill Payment Help

By directing FNB Internet Banking and Bill Payment to transfer funds or initiate a payment, you authorize FNB to withdraw from the designated account the amount of funds required to complete the assigned transaction without. You regard requests for new account services, instructions to change existing account information or services, and other communication received via FNB Internet Banking and Bill Payment as legal endorsements. As such, all correspondence initiated via FNB Internet Banking and Bill Payment shall command the legal authority of a written request by your signature.

Scheduling Online Bill Payments

Bill Payments will be sent electronically the payee may not receive payment until seventy-two (72) hours after the payment is deducted from your account. Bill Payment(s) scheduled after 2:00 pm will be processed on the next business day. Payment(s) can be scheduled up to 364 days in advance. Payment(s) made through the Bill Payment Service requires sufficient time for your payee to credit your account properly. You must authorize and schedule payment(s) within a sufficient time frame to avoid finance charges and other charges that may be assessed by the payee for late or non-receipt of payment. FNB will not be responsible for any charges assessed or other action taken by a payee resulting from a late or non-payment, including but not limited to finance charge and late fees.

Hours of Access

You may access On-line Financial Services seven (7) days a week, twenty-four (24) hours a day. However, at certain times, some or all of Internet Banking may not be available due to system maintenance (reboot) or reasons beyond our control (power failure). We do not warrant that Internet Banking will be available at all times. When unavailable, you may use an automated teller machine (ATM) or call our office to conduct your transaction.

Fees

There is no charge for the use of Internet Banking or Bill Payment. Payments to FNB accounts and transfers between your FNB accounts are free of charge. NOTE: Your accounts and loan accounts are still subject to the fees, charges, balance requirements, etc. articulated in the Deposit Agreement and the Loan Agreement.

Electronic Funds Transfer Errors

*See Complete Regulation E disclosure under the DISLOSURE section

In case of errors or questions about your electronic transfers, telephone us at 606-598-6111 or write us at 120 Town Square, Manchester Kentucky 40962 as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt.

FNB must hear from you within (60) days after the FIRST statement on which the problem or error appeared. Please tell us your name and account number, describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information and then tell us the dollar amount of the suspected error. If you tell us Scheduling Online Bill Payments Hours of Access Fees Electronic Funds Transfer Errors orally, we may require that you send us your complaint or questions in writing within (10) business days.

FNB will determine whether an error occurred within (10) business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to forty-five (45) days to investigate your complaint or question. If we decide to do this, we will credit your account within ten (10) business days for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within ten (10) business days, we may not credit your account. For errors involving new accounts, point of sale, or foreign initiated transactions, we may take up to ninety (90) days to investigate your complaint or question. For new accounts, we may take up to twenty (20) business days to credit your account for the amount you think is in error.

We will tell you the results within three (3) business days after completing our investigation. If we decide there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.

Customer Liability for Unauthorized Transfers

Notify FNB at once if you believe your PIN or password has been stolen at 606-598-6111. Telephoning is the best way to limit the amount of loss. If you tell FNB within two (2) business days, you can loose no more than $50.00 if someone has used your PIN or password without your permission.

If you do not tell us within two (2) business days after you learn of the loss or theft of your PIN or password and we can prove that some of the loss may have been prevented had we been informed of the loss, you can lose as much as $500.00

FNBM’s Liability for Failure to Make Transfers/Bill Payments

If FNB does not complete a transfer to or from your account on time or in the correct amount according to the account agreement with you (including, but not limited to, all rules and regulations governing your account), we will be liable for all losses not to exceed the amount of the transfer. However, there are exceptions. FNB will not be liable for, including but not limited to, the following:

1. If, through no fault of FNB, you do not have enough money in your account to complete the transfer; or
2. If the transfer would go over your credit limit on your line of credit account; or
3. If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precaution that have been taken; or
4. If the funds in the account are subject to legal process or other encumbrance restricting such transfers; or
5. If the Internet Banking system was not working properly due to the failure of electronic or mechanical equipment or communications lines, telephone or other interconnect problems, normal maintenance, unauthorized access, theft, operator errors, sever weather, earthquakes, floods and strikes or other labor problems; or
6. If there is an allegation of fraudulent activity concerning the account; or
7. If other rules, regulations or agreements of FNB so provide.
8. If transaction instructions are not actually received by FNB, FNB may not be held accountable for any loss resulting from the delay or failure to transmit instructions arising from user error, malfunction of equipment, natural impediments, and/or inaccurate or incomplete information. Customer Liability for Unauthorized Transfers FNB’s Liability for Failure to Make Transfers/Bill Payments

Occasionally a Payee may choose not to participate in the Bill Payment service, or may require additional information before accepting payments. FNB will work with these Payees to encourage them to accept an electronic or check payment from the bank. If FNB is unsuccessful, or if FNB determines that the Payee cannot process payments in a timely manner, FNB may decline future payments to this Payee. In the unlikely event that this occurs, FNB will promptly send you a notice. Any obligations that you wish to pay through the FNB Internet Banking and Bill Payment service must be payable in U.S. dollars to a payee located in the United Sates, U.S. territories, and APOs. FNB reserves the right in its sole discretion to restrict categories of payees to whom payments may be made using this service.

You should not use the service to make:

1. tax payments
2. court-ordered payments
3. payments to settle security transactions

Disclosure of Account to Third Parties

We will disclose information to third parties about your account or transfers you made:

1. When it is necessary to complete the transfer;
2. In order to verify existence and conditions of your account for a third party, such as a credit bureau or merchant;
3. In order to comply with a government agency or court orders; or
4. If you give us written permission.

Timeout Feature

In order to prevent someone from gaining unauthorized access to your financial information, you should always log off the system after you have completed your business. As an added level of protection, FNB online banking has a timeout feature that automatically terminates your session after an extended period of inactivity.

For additional protection, access to the FNB system will be denied or locked after three unsuccessful login attempts.

Disputes

In the event of a dispute regarding Internet Banking, you and FNB agree to resolve the dispute by looking to this Agreement. You agree that this Agreement is the complete and exclusive statement of the agreement between you and FNB, which supersedes any proposal or prior agreement, oral or written, and any other communications between you and FNB relating to the subject matter of this Agreement. If there is a conflict between what one of FNB employees says and the terms of this Agreement, the terms of this Agreement have final control.

No Waiver

FNB shall not be deemed to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by FNB. No delay or omission on the part of FNB in exercising any right or remedy shall operate as a waiver of such right or remedy or any other rights or remedies. A waiver on any particular occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions.

Your Right to Terminate

You may cancel your Internet Banking service at any time by providing us with written notice by postal mail, fax, at Delete My Account or phone (if you can validate your identity). Your access to Internet Banking will be suspended within three (3) business days of our receipt of your instructions to cancel this service. You will remain responsible for all outstanding fees, charges and pending transactions incurred prior to the date of cancellation.

Our Right to Terminate

You agree that we can terminate or limit your access to Internet Banking for any of the following reasons:
1. Without prior notice, if you have insufficient funds in any one of your Bank accounts. Internet Banking may be reinstated, at our sole discretion, once sufficient funds are available to cover any fees, pending transfers, debits, etc.
2. Upon three (3) business days notice, if you do not contact us to designate a new Primary checking account immediately after you close an existing Primary Checking account.
3. If you do not login to Internet Banking during any consecutive ninety (90) day period. If you wish to reinstate Internet Banking Services, you must contact the Bank.
4. You violate any term or condition of this Agreement.

Securing and Protecting Your Accounts

We are committed to protecting the security and confidentiality of our customers’ account information. We use several techniques to help secured our Internet Banking service. Including the following:

• You can only access information with certain browsers that have a high security standard.
• You must have a valid Internet Banking User ID and password to logon.
• If no activity is taken for a period of minutes, you will be automatically logged off the Internet Banking Service.

Liability

You are solely responsible for controlling the safekeeping of and access to, your password. You are liable for all transactions you make or that you authorize another person to make even if that person exceeds his or her authority. If you want to terminate another person’s authority, you must notify us and arrange to change the password. You will be responsible for any Bill Payment request you make that contains an error or is a duplicate of another Bill Payment. In any event First National Bank will not be liable for any special, consequential, incidental, or punitive losses, damages, or expenses in connection with this agreement or the Service, even if we have knowledge of the possibility of them.

Virus Protection

FNB utilizes the most up-to-date technology to protect our internal our internal systems and your personal financial information from computer viruses. Malicious viruses can sometimes be used to gain access to your personal computer. For protection of your personal system, FNB recommends you implement the following measures:

• Purchase and install antivirus software such as McAfee’s Virus Scan or Symantec’s Norton Antivirus to detect and eliminate potential viruses on your computer. For more information on virus detection software, visit McAfee Security or Symantec.
• Consider purchasing antivirus software that automatically scans for virus updates whenever you go online. If your software does not have this feature, update your antivirus software at least weekly by contacting your antivirus vendor to obtain the most current antivirus signature file.
• Do not open email attachments or downloaded files without firs saving them to your hard disk (C: drive). Your antivirus software should be configured to scan each file when it is saved and when it is opened.
• Never open email attachments from individuals you do not know. Simply delete the message altogether.
• Use caution with email attachments, even if you know the sender. If you were not expecting the message or if you have any suspicions, contact the sender and confirm that they indeed sent the message.

Communications Between FNBM and You

Unless this Agreement provides otherwise, you can communicate with us in regards to Internet Banking by one of the following ways. Normal business hours are from 8:00 AM to 3:30 PM EST, Monday through Friday, excluding federal holidays.

• Website: www.FNBMBank.com
• Telephone: Bookkeeping 606-598-6111 (Monday-Friday 8:00a.m. to 3:30 p.m.)(EST)
• Facsimile: 606-598-1451
• Postal Mail: First National Bank Attn: Bookkeeping 120 Town Square Manchester, Ky. 40962
• Secure Messaging via Internet Banking

You agree to accept this disclosure online rather than a paper disclosure. We recommend you print the entire Agreement and Disclosure for your records. If you are unable to print this, please request a paper disclosure to be mailed to you.

Business Banking Disclosure

Business Internet Banking Agreement and Disclosure
Customers who apply for Internet Banking are required to read this Agreement & Disclosure, prior to applications. Please read all information carefully.

Definitions
As used in this Agreement, the words “we”, “our”, “us” and “Bank” mean First National Bank Manchester. “Authorized user” refers to the accountholder authorized, under this Agreement, by the Bank to use Internet Banking. “You” and “your” refer to the “authorized users.” “Account” or “accounts” means your deposit or loan account at First National Bank. “Electronic funds transfers” means ATM withdrawals, preauthorized transactions, point of sale transactions and transfers to and from your Bank accounts. “Internet Banking Services” refers to the services provided pursuant to the Agreement, including the Online Bill Payment Service. “Business days” means Monday through Friday, excluding Federal holidays.

Agreement
This Agreement, including the service fees for Internet Banking related charges serves as the contract to establish the terms and conditions of Business Internet Banking. This Agreement provides guidelines for electronic access to your accounts. By using Internet Banking or permitting any other persons to use Internet Banking, you accept all the terms and conditions of this Agreement. The terms and conditions of this Agreement are in addition to any deposit agreements, deposit account rules and regulations, schedule of services and disclosures for each of your accounts, collectively, the “Deposit Agreement” as well as your other agreements with the Bank, including any loan or overdraft protections agreements. This Agreement, together with the Enrollment Form and Schedule of Services, the Deposit Agreement and any other documentation relating to other features of Internet Banking, constitutes the entire Agreement between you and the Bank with respect to subject matter of this Agreement. There are no unwritten understandings or agreements as to those matters.

Computer Requirements

You are responsible for obtaining, installing, maintaining and operating all computer hardware, software and Internet access services necessary for performing online services. The Bank will notify you of all future changes to these software and hardware requirements electronically by posting the notice on the Bank’s website or by email.

Account Ownership and Use

Access to the Account(s) through Internet Banking will be based upon the identification of authorized users and authority levels as specified by you on the Business Internet Banking Enrollment Form. Account owner(s) must sign and return the Enrollment Form, before access is granted. The Enrollment Form is available on our website or at any First National Bank Branch. You may, at your sole discretion and liability, grant other employees and/or individuals access to your account(s) through Internet Banking. You agree that, in the event such authority is granted, we shall be absolved of any and all responsibility, duty, obligation or liability concerning acceptance of funds transfer instructions received from your authorized users. 2 You, individually and on behalf of the entity that owns the account(s), release us from liability and agree not to make a claim or bring any action against us for honoring or allowing any actions or transactions where the person performing the action or transaction is you or otherwise has been given access to the account(s). You, individually and on behalf of the entity that owns the account(s), agree to indemnify and hold us harmless from any and all liability, but not limited to, reasonable attorney fees arising from any such claims or actions.

Access

To use Internet Banking, you must have a Checking account at First National Bank, access to the Internet and an email address. The Online Bill Payment Service also requires the use of a First National Bank Checking account. Access to Internet Banking will not be effective until all information on the signed Internet Banking Enrollment Form has been verified and approved. Transfers in Internet Banking can only be made between the accounts designated on the Funds Transfer Authorization Request Form. Changes to account information must be communicated to us in writing. We undertake no obligation to monitor transactions through Internet Banking to determine that they are made between the accounts designated on the Funds Transfer Authorization Request Form. Changes to account information must be communicated to us in writing. We undertake no obligation to monitor transactions through Internet Banking to determine that they are made on behalf of the accountholder. During your Internet Banking session, you will automatically be disconnected after twenty (20) minutes of inactivity. IMPORTANT NOTE: When leaving an Internet Banking session, it is highly recommended that you signoff completely before going to another website. The system will not automatically log you out of your Internet Banking session unless there is ten minutes of inactivity. If you do not sign-off, someone using the same computer, within the ten minutes of inactivity, would be able to “back” into your session. Signing off from your session will ensure your access to your account information is safeguarded.

Internet Banking Services

You can use Internet Banking to check the balance of your account(s), view transaction histories, transfer funds between your account(s), initiate stop payments, view front and back of check images and pay bills. Internet Banking allows you to download account histories to various accounting software programs. Stepby-Step instructions are provided within Internet Banking. Advance features include ACH Payments Updated balance and account activity is available by 7:00 p.m. (Eastern Time). Deposits, withdrawals (this does not include ATM/POS transactions) and payments are immediately viewable on your accounts. Additional services and enhancements to existing services may be added from time to time without prior notice.

Hours of Access

You can use Internet Banking seven (7) days a week, twenty-four (24) hours a day. Some or all Internet Banking services may not be available occasionally due to emergency or scheduled system maintenance or events beyond our control. We agree to post notice of any extended or unusual periods of non-availability on our website www.FNBMBank.com

Your Password

You are required to change your password upon your initial login to Internet Banking. You will be prompted to change your password every ninety (90) days. You determine your password. The identity of your password is never communicated to us. Internet Banking will force you to create a password that utilizes both alpha and numeric characters. Your password must be between six (6) to twelve (12) characters long. Your password should not be associated with any commonly known personal identification, such as social security numbers, address, date of birth or names of children. Your password should be memorized rather than written down. Your password will be revoked after three (3) unsuccessful attempts to sign-on to Internet Banking. To reestablish your access to Internet Banking you must contract the Bank to obtain a new temporary password. You agree to keep your user ID, and password
1. secure and strictly confidential, providing it only to authorized users on your account(s);
2. instruct each person to whom you give this information that he or she is not to disclose it to any unauthorized person; and
3. immediately notify us if you believe your information may have become know to an unauthorized person.

We may suspend or cancel your access even without receiving such notice from you, if we suspect your password is being used in an unauthorized or fraudulent manner. We can not accept notification of lost or stolen passwords or unauthorized transfers via email.

You agree that we are authorized to act on instructions received under your password. You accept responsibility for the confidentiality and security of your password.

IF YOU FURNISH A PASSWORD AND GRANT AUTHORITY TO MAKE TRANSFERS TO A PERSON (SUCH AS A FAMILY MEMBER OR CO-WORKER) WHO EXCEEDS THE AUTHORITY GIVEN, YOU ARE FULLY LIABLE FOR THE TRANSFERS UNLESS YOU NOTIFY US THAT TRANSFERS BY THAT PERSON ARE NO LONGER AUTHORIZED, WITH REASONABLE OPPORTUNITY TO ACT ON THAT NOTICE.

WARNING: Certain Internet browsers will prompt you to “save password”. If you elect to save your password, it will be stored in your computer. This will allow anyone who obtains access to your computer to use your browser to sign on to Internet Banking in your name and under your password, thereby accessing your account without your knowledge or permission. The Bank would not know that the instructions were not from you, and would follow them just as if they came from you. The Bank strongly urges you not to save your password in your browser’s “memory,” even though it may save you time.

Security

We are committed to protecting the security and confidentiality of our customer’s bank account information. We use several techniques to help secure our Internet Banking service, including the following:
• You can only access information with certain browsers that have a high security standard.
• If no activity is taken for a period of minutes, you will be automatically logged off the Internet Banking Service.

You understand the importance of your role in preventing misuse of your accounts through Internet Banking and you agree to promptly examine your statement for each of your Bank accounts as soon as you receive it. You agree to protect the confidentiality of your user ID and password, which are intended to provide security against unauthorized entry and access to your accounts.

Notwithstanding our efforts to ensure that Internet Banking is secure, you acknowledge that the Internet is inherently insecure and that all data transfers, including electronic mail, occur openly on the Internet and 4 potentially can be monitored and read by others. We cannot and do not warrant that all data transfers utilizing Internet Banking, or email transmitted to and from us, will not be monitored or read by others. For more security tips please visit our website at www.FNBMBank.com

Liability

Fees and Charges

You agree to pay the fees and charges for your use of Internet Banking as set forth in the current Service Fees section of this Agreement, and in the current Schedule of Service Fees. You agree that all such fees and charges will be deducted from the account designated as the “Primary Checking Account” on your Internet Banking Enrollment Form.

If you close your Primary Checking Account, you must contact Electronic Banking Service by email or in writing immediately to designate another account as your Primary Checking Account.

You agree to pay any additional charges for services that you request which are not covered by this Agreement. You are also responsible for telephone, Internet service provider, satellite or other such associated fees you incur in connection with your use of Internet Banking.

The Bank will notify you of any change in the pricing of Internet Banking. If the Bank does not receive a response with regards to a price change within 30 days, the Bank will assume your acceptance of the new schedule.

Posting of Transfers

Transfers initiated through Internet Banking before 7:00 PM (Eastern Time) on a business day are posted to your account the same day, providing funds are available. Transfers completed after 7:00 PM (Eastern Time) on a business day, or anytime on Saturday, Sunday or federal holiday will be posted to your account on the same day but funds will not be available until the next business day.

Internet Banking identifies transfers based upon the user ID who made the transfer. You agree to communicate with any other authorized users concerning any transfers or bill payments form your account(s) in order to avoid overdrafts.

With the acceptance of this Agreement access to lines of credit/loans, through Internet Banking, will be utilized only as authorized by the loan agreements.

Overdrafts

If your account has insufficient funds to perform all electronic funds transfers (transfers, Online Bill Payment, etc.) you have requested for a given business day, then:

a) Electronic funds transfers involving currency disbursements, like ATM withdrawals will have priority;
b) Electronic funds transfers initiated through Internet Banking which would result in an overdraft of your account may, at our discretion be cancelled; Liability 5
c) In the event the electronic fund transfer initiated through Internet Banking, which would result in an overdraft on your account are not cancelled, overdraft charges may be assessed pursuant to the terms of the Deposit Agreement.
d) You agree to pay us the amount of any overdraft together with any fee and accrued interest immediately upon demand, whether or not you requested or participated in the transaction creating the overdraft or received any benefit from the transaction creating the overdraft. You agree to pay all costs and expenses, including attorney fees, incurred by us in the collection of any overdraft.

Automated Clearing House Services

The Automated Clearing House (“ACH”) Service allows you to make payments to or collect funds from accounts. ACH payments or collections may be set up in Internet Banking. Each ACH request (“Order”) must be completed in its entirety. The following rules and regulations apply.

Customer Authorizations and Record Retention
You may initiate ACH Orders only with the prior written authorization of the persons whose accounts are affected by such Orders. You agree to maintain a copy of each authorization for a period of two years following its termination, and to provide us with a copy upon request. It is your responsibility to verify that the individual signing the ACH debit or credit agreement is in fact entitled to use the specified account. You will not submit ACH debit Orders to collect funds for checks or other paper items which have been dishonored and returned for any reason, even if such represented check Orders are permitted under the Rules.

ACH Payment Orders
When you transmit an ACH Payment Order, you authorize us to charge your account for the amount of the payment. If your account does not have enough available funds to cover a payment, we may reject the transaction. We may charge a fee for each ACH Payment Order presented against insufficient available funds, whether or not we honor the request. You assume the sole responsibility for providing us with accurate payment information in the form and format that we require. We are not responsible for confirming such information, or for monitoring or refusing to process duplicate Orders. If you give us an Order that is incorrect in any way, you agree that we may charge your account for the payment whether or not the error could have been detected by us. We are not obligated to detect errors in your transfer or payment instructions.

Prenotification
You must send a pre-notification (zero-dollar amount transaction) entry six (6) days prior to initiating the first five (dollar transaction) entry to an account. This is done automatically when using the ACH Payments and Collections feature. When using the ACH File Upload feature a pre-notification file must be created and uploaded. A pre-notification is done to test the validity and accuracy of the account numbers and routing numbers.

Should you receive notice that any such pre-notification has been rejected by the Receiving Depository Financial Institution (RDFI), or that an RDFI will not receive entries without having first received a copy of the written authorization signed by their customer (the Receiver), you will initiate no further Orders to the Receiver until you provide the RDFI with such authorization. At such time, you may initiate Orders within the time limits provided in the ACH Rules. You understand that ACH Orders will be posted based on the account information provided in the ACH transaction, not based on the name, individual identification or other information provided in the entry.

ACH Transaction Rules
When engaging in any transactions through the ACH, you agree to comply with the terms of this Agreement and the Rules of the National Automated Clearing House Association of this Agreement and the Rules of the National Clearing House Association (“NACHA”) (the “Rules”), as amended from time to time and Uniform Commercial Code Article 4A (UCC4A) (IC26-1-4-1), if applicable. You can obtain a 6 copy of the Rules by contracting NACHA – Electronic Payments Association at 13450 Sunrise Valley Drive, Suite 100, Herndon, VA 20171, 703-561-1100.00, or at info@nacha.org.

ACH Payment/Collection Instructions
Your orders must comply with the requirements set forth in the Rules and any applicable security procedures. You acknowledge that Orders may not be initiated that violates the laws of the United States, including the economic sanctions administered by the U.S. Treasury Office of Foreign Assets Control (OFAC).

You will be solely responsible for the acts and omissions of authorized users. You agree to indemnify, defend and hold us harmless from any actions, claims, proceedings, damages, losses and costs which you or we incur as a result of their actions or omissions.

Unless you promptly notify us of a problem with an ACH Payment or Collection, at least one (1) day prior to the transaction, you will be deemed to have approved the accuracy and completeness of the information contained in the transaction.

Transaction Limits and Safeguards
You agree not to exceed the transaction limits we establish for your account. You agree that you will not allow anyone to initiate Orders without proper authorization and adequate safeguards. You will review pending Orders prior to their submission to ensure that they are complete, accurate and properly authorized.

Cancellation and Amendment of Orders
You may not cancel or amend an Order after we receive it. If we attempt to reverse an Order at your request, we assume no liability for any interest or losses that result if the reversal is not completed. You agree to indemnify, defend, hold harmless and reimburse us for all expenses, losses, claims, actions, proceedings and damages we incur in reversing or attempting to reverse said Order. You are solely responsible for providing notice to Receivers that a reversal is being transmitted and the reason for the reversal no later than the settlement date of the reversing entry.

Notice of Returned/Refused of Orders
We may refuse any Order with or without cause or prior notice. You agree to maintain sufficient funds in your account for a period of two business days prior to the settlement date to cover the amount of your Orders, as well as returned or reversed Collection Orders, adjustment Orders, and other amounts owed to us. We may refuse an Order if there are not sufficient funds in your account on the date we initiate the transaction (up to two business days before an ACH settlement date) or on the settlement date. We will notify you of such refusal electronically, in writing or be telephone, no later than two business days after the date the Order was to be completed. We are not required to pay you interest on a rejected Order for the period from the refusal of the Order to your receipt of the notice of refusal. If an Order is returned by ACH, we may submit the Order back to you, adjust your account, and await further instructions. We may resubmit such Order, but only if the return is due to our error and we have sufficient data to resubmit the Order. You agree to retain and provide us with the necessary information to make such Orders until midnight of the third business day following the settlement date. We will not be obligated to credit your account with any interest, unless the return is caused by our failure to properly execute the Order.

Provisional Credit
Credit for ACH transfer is provisional until the Receiving Depository Financial Institution (RDFI) obtains final settlement. If final settlement does not occur, the originator of the transfer is not deemed to have made payment to the beneficiary, and the beneficiary’s bank

Internet Banking Online Bill Payment Service

By using the Online Bill Payment Service you agree that we will debit your designated account by electronic transfer, “no signature required draft” or by debiting and remitting funds on your behalf. 7 You may designate only one Checking account from which Bill Payments are made. If the Bank institutes a monthly charge, it will be deducted from your Checking Account. To make a payment through the Online Bill Payment Service, you must designate:

a. The Bank account from which the payments are to be made;
b. The complete name of the payee, your account number with the payee and the payee’s remittance address;
c. The amount of the payment;
d. The date you want the payment to be debited from your account. If the date you want the payment to be debited from your account is not a business day, your account will be debited the next business day.

We reserve the right to refuse to pay any payee designated by you. If we do so, the Bank will notify you promptly. The Bank reserves the right to terminate or deny access to the Online Bill Payment Service. You are not allowed to pay a court ordered payment or make a payment to the Internal Revenue Service through the Online Bill Payment Service.

Scheduling Online Bill Payments
The Bill Payment Processing Center determines if the payment is sent electronically or by paper check. If payment is made by paper check, you understand and agree that paper checks are mailed and the payee may not receive payment until five (5) to seven (7) business days after the payment is deducted from your account. If the payment is made electronically you understand and agree that the payee may not receive payment until seventy-two (72) hours after the payment is deducted from your account.

Bill payment(s) scheduled after 8:00 PM EST will be processed on the next business day. Payment(s) can be scheduled up to 364 days in advance.

You understand and agree that we are not responsible for the timely delivery of mail, the improper transmission or handling of payments by third party (such as the failure of the payee to properly post a payment to your account). You also understand and agree that we are not responsible if you do not have sufficient funds in your account on the date payment is to be deducted from your account. Payment(s) made through the Bill Payment Service requires sufficient time for your payee to credit your account properly. You must authorize and schedule payment(s) within a sufficient time frame to avoid finance charges or other charges that may be assessed by the payee for late or non-receipt of payment. The Bank will not be responsible for any charges assessed or other action taken by a payee resulting from a late or non-receipt of payment, including but not limited to finance charges or late fees.

Funds must be available in your designated account on the scheduled payment date. If your account does not have sufficient funds on such scheduled date, the payment will be processed as any other non-sufficient funds item with all applicable charges as provided in the Deposit Agreement. You will be notified and the Bank shall have no obligation or liability if it does not complete a transfer or payment because there are insufficient funds in your account to process the transaction. In all cases, you will be responsible for either making alternate arrangements for the payment or rescheduling the payment through the Bill Payment Service. In the event you have insufficient funds to make some, but not all, disclosed in the Deposit Account Agreement.

How to Cancel an Online Bill Payment
A bill payment that you have scheduled, but has not been completed may be canceled before 3:00 PM (Eastern Standard Time) on the business day the payment is scheduled to be debited from your account. The payment must be in the pending payments list. A verbal request to cancel a bill payment can be made 8 by contacting the Bookkeeping Department at 606-598-6111. The request must precisely identify the name of the payee; the payee assigned account number, the amount and scheduled date of the payment.

If a bill payment is paid electronically and has been debited from your account, you can not cancel or stop the transactions.

If a bill payment is paid by paper draft, you may be able to cancel the payment if the paper draft has not cleared. Contact Bookkeeping at 606-598-6111. If the paper draft has not cleared, we will attempt to process your stop payment request. If the paper draft has already cleared, you will be notified. To process this request you must submit a message, under your user ID and password, from Internet Banking, authorizing this action without your physical signature.

Periodic Statements
All Internet Banking transactions will appear on your periodic statement.

Change in Terms
We may change any term of this Agreement at any time. If the change would result in increased fees for any Internet Banking service, increased liability for your, fewer types of available electronic funds transfers or stricter limitations on the frequency or dollar amount of transfers, we agree to give you notice at least thirty (30) days before the effective date of such change, unless immediate change is necessary to maintain the security of an account or our electronic funds transfer system. We may notify you of any required notice of change in terms on our website at www.FNBMBank.com by email or postal mail. If advance notice of change is not required, and the change does not jeopardize the security of your account or our electronic funds transfer system, we will notify you of the change in terms within thirty (30) days after the change become effective. Your continued use of any part or all of Internet Banking indicates your acceptance of the change in terms.

If your email account changes or is cancelled, you must contact Bookkeeping immediately

Disclaimer of Warranty and Limitations of Liability
We make not warranty of any kind, express or implied, including implied warranty of merchantability or fitness for a particular purpose, in connections with the services of Internet Banking provided to you under this Agreement. We do not and cannot warrant that Internet Banking will operate without errors, or that any or all Internet Banking services will be available and operational at all times or that you will always have access to Internet Banking. We do not warrant that our services, the Internet or our suppliers will be available on a specified date or time or have the capacity to meet your demands during specific hours.

You agree that the Bank, its officers, directors, employees, agents or affiliates are not liable for any direct, indirect, incidental, special or consequential damages under or by reason of any services or products provided hereunder, your use of or access to Internet Banking, or the inability to use the services or products provided hereunder, including, but not limited to, loss of profits, revenue or date by you or any third party, whether in an action in contract or tort or based on a warranty. Neither Bank nor its suppliers will be liable for unauthorized access to the Bank’s transmissions facilities, premised, equipment or for unauthorized access to or alteration, theft or destruction of your data files, programs, procedures or information through accident, fraudulent means or devices or any other method, regardless of whether such damage occurs as a result of the Bank or its supplier’s negligence.

The Bank attempts to properly transmit email and other electronic communications. However, by using Internet Banking, you agree that you will not assert any claim against the Bank arising from the inadvertent or negligent misdirection of email or other electronic communications to a third party, even if such email results in the disclosure to a third party of confidential or personal information about you.

Third Party Network Disclaimer
You may not sell or redistribute any services you receive through Internet Banking, our other services or from our suppliers. You acknowledge and agree that neither the Bank nor its suppliers are responsible for the content of your transmissions, which may pass through any Internet Service Provider or over the Internet. You agree to take reasonable steps to ensure that you will not use the services provided to you for illegal or disruptive purposes. Disruptions include, but are not limited to, distributing chain letters or mass mailings of unsolicited email (“spamming”) propagating computer worms or viruses or using the services and the Internet to make unauthorized entry to any other machine. Violation of the foregoing may result in termination of access rights to the offending party or parties.

Third Party Software: Electronic Threats
The Bank makes no representations or warranties regarding the accuracy, functionality or performance of any third party software that me be used in connection with Internet Banking (for example Quicken, Microsoft Money etc.). The Bank is not responsible for any electronic threats (for example Viruses, Spy ware, etc.) that you may encounter. We encourage you to routinely scan your computer, diskettes and software using a reliable antivirus and malicious software detection products to detect and remove any electronic threats found. Undeleted or unrepaired electronic threats may alter, corrupt, transmit, damage or destroy your programs, files and even your computer, diskettes or software. It is your responsibility to maintain the integrity of your computer.

Your Right to Terminate
You may cancel your Internet Banking service at any time by providing us with written notice by postal mail, fax, at Delete My Account or phone (if you can verify your identity). Your access to Internet Banking will be suspended within three (3) business days of our receipt of your instructions to cancel this service. You will remain responsible for all outstanding fees, charges and pending transactions incurred prior to the date of cancellation.

Our Right to Terminate
You agree that we can terminate or limit your access to Internet Banking for any of the following reasons:
a. Without prior notice, if you have insufficient funds in any one of your Bank accounts. Internet Banking may be reinstated, at our sole discretion, once sufficient funds are available to cover any fees, pending transfers, debits, etc.
b. Upon three (3) business days notice, if you don not contact us to designated a new Primary Checking account immediately after you close an existing Primary Checking account.
c. If you do not login to Internet Banking during any consecutive ninety (90) day period. If you wish to reinstate Internet Banking Services, you must contact the Bank.
d. You violate any term or condition of this Agreement.
e. For any other reason at our sole discretion, with reasonable notice.

Electronic Mail
If you send the Bank an electronic message (email), the Bank will be deemed to have received it no later than the following business day. The Bank will have a reasonable time to act on your email.

You should not rely on email if you need to communicate with the Bank immediately (for example, to report the loss, theft or unauthorized use of your password or an unauthorized transaction). Do not use this feature to send us confidential information about your account.

You are strongly recommended to use Bank Mail, a secured messaging service within Internet Banking, for contacting us regarding your account.

Virus Protection
FNB utilizes the most up-to-date technology to protect our internal our internal systems and your personal financial information from computer viruses. Malicious viruses can sometimes be used to gain access to your personal computer. For protection of your personal system, FNB recommends you implement the following measures:
• Purchase and install antivirus software such as McAfee’s Virus Scan or Symantec’s Norton Antivirus to detect and eliminate potential viruses on your computer. For more information on virus detection software, visit McAfee Security or Symantec.
• Consider purchasing antivirus software that automatically scans for virus updates whenever you go online. If your software does not have this feature, update your antivirus software at least weekly by contacting your antivirus vendor to obtain the most current antivirus signature file.
• Do not open email attachments or downloaded files without firs saving them to your hard disk (C: drive). Your antivirus software should be configured to scan each file when it is saved and when it is opened.
• Never open email attachments from individuals you do not know. Simply delete the message altogether. • Use caution with email attachments, even if you know the sender. If you were not expecting the message or if you have any suspicions, contact the sender and confirm that they indeed sent the message.

Communication Between FNBM and You
Unless this Agreement provides otherwise, you can communicate with us in regards to Internet Banking by one of the following ways. Normal business hours are from 8:00 AM to 3:30 PM EST, Monday through Friday, excluding federal holidays.

Website: www.FNBMBank.com

Telephone: Bookkeeping 606-598-6111 (Monday-Friday 8:00a.m. to 3:30 p.m.)(EST)

Facsimile: 606-598-1451

Postal Mail: First National Bank Attn: Bookkeeping 120 Town Square Manchester, Ky. 40962

Please read this agreement carefully and keep a copy for your records.

Important information about procedures for opening a new account

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.