Internet Banking Agreement and Disclosure

This Internet Banking Agreement and Disclosure (the "Agreement") is between The Bank of San Jacinto County (the "Bank") and each depositor who has applied for, been approved for, and enrolled in our Internet Banking Services(the "Services"), or any person whom the depositor has authorized to use the depositor's Services. By completing and signing the Bank's Internet Banking Application/Enrollment form, you have agreed to be bound by the terms and conditions of this Agreement, as it may be amended from time to time. This Agreement describes your and our rights, responsibilities, and obligations with respect to the Services, and supplements any other agreements between us, including the electronic funds transfer agreements and disclosures that you received previously when opening your bank deposit account and/or contracting for other types of electronic transfer access for those accounts. When you use the Services or you permit any other person to use the Services, you agree to the terms and conditions we have set out in this Agreement and any instructional material we provide regarding the Service. If there is a conflict between the terms and conditions of this Agreement and those contained in other agreements between us, this Agreement will control.

In this Agreement, the words "you" and "your" mean each person who signs as applicant on our Internet Banking Application/Enrollment form and any person authorized by an applicant to use the applicant's Internet Banking Services. The term "Business Account" means an account that is not established primarily for personal, family, or household purposes. The term "Consumer Account" means any account established primarily for personal, family, or household purposes. The words, "we," "us," "our," and "Bank" mean The Bank of San Jacinto County and any agent, independent contractor, designee, or assignee that we may, in our sole discretion, involve in the provision of online services, including but not limited to Fiserv Solutions, Inc. The terms "designated account(s)" and "account(s)" mean your accounts with us that you designate on your Application/Enrollment form for Internet Banking Services. Internet Banking Services ("Services") means the information, communications, and transactions provided to you by us through the The Bank of San Jacinto County web site, URL address http://www.banksjc.com (the "Site") within our area of services, as described more fully below. Other definitions may appear within the text of this Agreement.

Eligibility: In order to be eligible for Internet Banking Services, you must have at least one deposit account with us. We will assign to you an Internet Banking customer identification ("ID") number and give you instructions to activate your personal identification number ("PIN"), which you must use to access Internet Banking. We may require you to change your PIN every three months for security purposes. You should keep your PIN in a secure location. Any person having access to your Internet Banking customer ID number and PIN will be able to access Internet Banking and perform all transactions, including reviewing your account information and making transfers between your accounts with us.

Linking Your Accounts: You can use Internet Banking to access as many of your accounts with us as you designate on your Internet Banking Application/Enrollment form. Accounts that are "linked" under the Services must have one common owner and signer. An account that requires two or more signatures to make withdrawals, transfers, or transactions cannot be accessed through the Services.

Access: Internet Banking is generally accessible 24 hours a day, seven days a week, except for reasonable periods from time to time for system maintenance. We are not liable under this Agreement for failure to provide access due to a system failure or due to other unforeseen acts. We may modify, suspend, or terminate access to Internet Banking Services at any time and for any reason without prior notice, unless such notice is required by law. You should notify us immediately if an account that is not yours or to which you are not authorized access as a sole signer, or otherwise, is linked to your account by calling us at (936) 653-4395 or write to us at P.O. Box 100, Coldspring, Texas 77331.

Risk of Use and Disclaimer of Liability: Although the Bank attempts to provide accurate, up to date information on its Site, the information and material contained in the Site, including text, graphics, pictures, logos, icons and other materials (the "Contents"), are provided on an "as is" "as available" basis, and the Bank disclaims liability for any errors or omissions in the Contents. Your use and browsing of the Site and its Contents and your use of the Services is at your own risk. The Bank makes no representations, endorsements, or warranties of any kind whatsoever, either express or implied, including, but not limited to, any warranties of title, accuracy, completeness, suitability, reliability, or any implied warranties of merchantability, fitness for a particular purpose, freedom from computer virus or non-infringement, with the sole exception of warranties (if any) that cannot be expressly excluded under applicable law. Neither the Bank nor any affiliate, nor any other party or their respective directors, officers, or employees involved in creating, producing, or delivering the Site is or shall be liable for any direct, consequential, indirect, special, punitive or other damages of any kind arising out of your access to or use of the Site or the Services, whether under a contract, tort or any other theory of liability, arising in connection with and use of the Services or in connection with any failure of performance, error, omission, interruption, defect, delay in operation or transmission, computer virus, line system failure, loss of data, or loss of use, whether related to or caused by the equipment, software, Bank, or by Internet browser providers such as Netscape and Microsoft, or by online service providers or by an agent or subcontractor of any of the previously mentioned parties.

Each party will bear the liability or the risk of any error of loss of data, information, transactions or other losses that may be due to the failure of its respective computer system or third party communications provider. We will have no liability to you for any damage or other loss, direct or consequential, that you may incur by reason of your use of your computer system.

You agree that our liability for viruses, worms, Trojan horses, or other similar harmful components that may enter your system by downloading the materials from our Site will be limited to replacing, or the reasonable cost of replacing, the lost information, software or other material. We will not be responsible or liable for any indirect, incidental, special, or consequential damages that may result from such harmful components.

WITHOUT LIMITING THE FOREGOING, THE SERVICES AND EVERYTHING ON THE SITE ARE PROVIDED TO YOU "AS IS," "AS AVAILABLE" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR PARTICULAR PURPOSE, FREEDOM FROM COMPUTER VIRUS OR NON-INFRINGEMENT, UNLESS DISCLAIMING SUCH WARRANTY IS PROHIBITED BY LAW.

Equipment and Software: The following devices (collectively, the "Equipment") are required to access the Services: personal computer and modem with browser equipped with 128-bit encryption.

Available Internet Banking Services: Depending upon the particular features you select, you may use your customer ID number and PIN to access the following Internet Banking Services:

(1) Account Information: You may view the current balance, interest rate, and history for your designated checking, savings and time accounts, as well as designated loan accounts. For your designated checking, and savings accounts, you can also view the current and prior periodic statements.

(2) Transfers: You may transfer funds between any designated checking and savings accounts. You may also transfer funds from a designated checking or savings account to pay a designated loan owed to the Bank. Transfers may be subject to other restrictions, described under "Limitations" below. Transfers to third parties may be effected through our Bill Pay Service, which is offered as an ancillary service to our Internet Banking Services.

Your account records are updated at the close of each business day to reflect credits and debits that are posted to your account that day. Therefore, when you use Internet Banking Services to access your designated account, your account balance may not reflect deposits and/or withdrawals that have been made since your account records were last updated.

E-Mail: You can use electronic mail ("e-mail") to contact us about inquiries, maintenance and/or problem resolution issues. However, e-mail is not a secure method of communication over the Internet and we recommend that you do not send confidential information by e-mail.

Limitations: For security purposes, we may from time to time, establish limits on the dollar amount of electronic funds transfers you may make each day that are different from those set forth below. These limits may vary according to the manner in which such transfers are made. If we make a change that results in stricter limits on the dollar amount set forth below or any other change about which, by law, we are required to give you notice, we will provide you with a written notice of the stricter limits or other change. The current limitations are:

• There are no limits on the number of balances inquiries, or number or dollar amount of transfers you may make via Internet Banking in a single day. However, transfers from some types of accounts are restricted by federal law, or by our design of the product. You are not permitted under applicable law to make more than six (6) pre-authorized, automatic, telephone, or computer transfers from a savings or money market account each statement period.

No more than three (3) of the transfers may be made by draft, check, debit card, or similar order to a third party (to the extent permitted by these accounts). Refer to your account agreement for further information regarding these limitations.

• The amount of Internet Banking transfers that you may make is limited by the available balance in the account you wish to transfer from, including any funds available through any type of overdraft protection arrangement you have established with us. If you request a transfer that exceeds the funds available in the account from which a transfer is being made, we will not be required to honor the transfer request. However, if we, in our sole discretion, choose to make a requested transfer that exceeds the funds available in the account, that account will be subject to our current fee for processing items drawn against non-sufficient funds.
• Transfers may also be limited by legal processes or other claims restricting such transfers.
• Transfer instructions received by us Monday through Friday, excluding holidays, before 5:00 P.M. Central Time will be credited/debited to your designated accounts on that business day, assuming that you have sufficient available funds. Transfers processed after that time or on a weekend or holidays will be credited/debited on the next business day.

Fees and Charges for Internet Banking Transactions:

• There is no charge for the Internet Banking Service transactions.
• However, fees and charges for other services may apply to Internet Banking transactions (including but not limited to fees for processing insufficient funds items).

Your Rights and Responsibilities:

(1) Your Responsibility:

You are responsible for keeping your customer ID number, PIN, and account data confidential. If you authorize other persons to use your customer ID number and PIN in any manner, your authorization will be considered unlimited in amount until you have notified us in writing that you have revoked your authority, and you are responsible for any transactions made by such person from your designated account(s) until you notify us that transfers by that person are no longer authorized by you.

(2) Liability for Unauthorized Internet Banking Transactions Involving Consumer Accounts:

Tell us AT ONCE if you believe your Internet Banking customer ID number or PIN has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, or if you suspect any fraudulent activity on your account. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your accounts (plus your maximum overdraft line of credit).

Also, if your statement shows transfers that you did not make, tell us AT ONCE. If you do not tell us within sixty (60) days after the first statement showing such a transfer was mailed to you, you may not get back any money lost after the sixty (60) days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods for notification.

If you believe that your customer ID number or PIN number has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call (936) 653-4395 or write to us at The Bank of San Jacinto County, P.O. Box 100, Coldspring, Texas 77331.

Business Accounts: To the extent your designated account is a Business Account, the limitations on liability set forth above are not applicable. Notwithstanding anything to the contrary in the Agreement, you will be liable for any unauthorized use of the Internet Banking Services in these instances unless otherwise provided by applicable law or written agreement with us.

Business Days: For purposes of this Agreement, our business days are Monday through Friday. Holidays are not included.
Documentation:

(1) Periodic Statement: You will get a monthly account statement from us, unless there are no transactions in a particular month. In that case, you will get a statement quarterly. All Internet Banking transfers effected during that statement period will be reflected on your statement.

(2) Direct Deposit: If you have arranged to have direct deposits made to your designated account at least once every sixty (60) days from the same person or company, you can call us at (936) 653-4395 or use Internet Banking to find out whether or not the deposit has been made.

Our Liability for Failure to Make Transfers: If we do not complete a transfer to or from your designated Consumer Account on time or in the correct amount according to our Agreement with you, we will be liable for your losses or damages. However, there are some exceptions to our liability for processing Internet Banking transactions on your account(s). We will NOT be liable, for instance;

• If, through no fault of ours, you do not have enough money in your designated account to make the transfer.
• If the funds in your designated account are attached, subject to legal process or other claim restricting such transfer.
• If the transfer would go over the credit limit on your overdraft line.
• If either you or we have terminated this Agreement.
• If the system was NOT working properly and you knew about the malfunction or breakdown when you started the transfer request.
• If circumstances beyond our control (such as fire, flood, malfunction in computer or communications equipment or malfunction or disruption of telephone line service) prevent the completion of the transaction despite reasonable precautions that we have taken to avoid these circumstances.
• If we believe in good faith that a breach of security has occurred, or is occurring, involving your designated account(s) or any aspect of your utilization of Internet Banking Services and we take immediate steps to notify you.
• If there are any other exceptions stated in other agreements between you and us, with respect to your account(s). There may be other exceptions stated throughout this Agreement.

You agree to abide by and be bound by all applicable limitations. In addition, if such failure is not intentional and results from a bona fide error, notwithstanding procedures to avoid such error, our liability shall be limited to the actual losses or damages proved.

If the affected account is a Business Account, the extent of our liability for failure to make timely transfers to or from the account will be governed by other provisions of this Agreement.

In Case of Errors or Questions About Your Electronic Transfers: Consumer Accounts: Telephone us at (936) 653-4395 or write to us at the address shown below as soon as you can, if you think your statement is wrong or if you need more information about a transfer listed on the statement:

The Bank of San Jacinto County P.O. Box 100 Coldspring, Texas 77331

We must hear from you no later than sixty (60) days after we sent the FIRST statement on which the problem or error appeared.

• Tell us your name and account number (if any).
• 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.
• Tell us the dollar amount of the suspected error.

If you tell us orally, we may require that you send us your complaint or question in writing within ten (10) business days.

We will tell you the results of our investigation within ten (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 re-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 re-credit your account.

For errors involving new accounts or a transfer initiated from a foreign location, 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 that there was no error, we will send you a written explanation of our findings within three (3) business days after we -finish our investigation. You may ask for copies of the documents that we used in our investigation.

Business Accounts: This provision does not apply to Business Accounts. See "Special Business Accounts" provisions for information about reporting discrepancies.

Confidentiality: For your designated account that is a Consumer Account we will disclose information to third parties about your account or the transfers you make:

• To complete transfers as necessary;
• To verify the existence and condition of your account upon the request of a third party, such as a credit bureau, or merchant; or
• To comply with government agencies or court orders; or
• If you give us your written permission; or
• As otherwise provided in other agreements you have with us regarding your account(s).

For your designated account that is a Business Account, the provisions of this section are not applicable and we reserve the right to share Business Account information to the fullest extent permitted by law.

Personal Identification Number (PIN): The Internet Banking customer ID number and PIN are for your security purposes. The numbers are confidential and should not be disclosed to third parties or recorded or saved on a computer or other online system. You are responsible for safekeeping your customer ID number and PIN. You agree not to disclose or otherwise make your Internet Banking customer ID number or PIN available to anyone not authorized to sign on your designated account(s).

Notices: All notices from us will be effective when we have mailed or delivered them to your last known address in our records. Notices from you will be effective when received by us at the address in this Agreement. We reserve the right to change the terms and conditions upon which the Internet Banking Services are offered. If your designated account is a Consumer Account, we will mail a notice to you at least twenty-one (21) days before the effective date of any change when required by law to do so. Use of Internet Banking is subject to existing regulations covering your designated accounts and any future changes to those regulations.

Enforcement: In the event that we bring a legal action to enforce this Agreement, or collect amounts owing as a result of any account transaction, you agree to pay any reasonable attorney’s fees and costs that we may incur, including fees on any appeal, subject to any limits under applicable law.

Termination of Internet Banking Services: You agree that we may terminate this Agreement and your use of Internet Banking Services if:

• You or any authorized user of your Internet Banking PIN breach this or any other agreement with us;
• We have reason to believe that there has been an unauthorized use of your Internet Banking Customer ID number or PIN;
• You close all accounts linked under this Agreement;
• We notify you or any other party to your designated account that we have cancelled or will cancel this Agreement;

You or any other party to your designated account can terminate this Agreement by notifying us in writing. You must notify us at least ten (10) business days before the date on which you wish to have your Internet Banking Services terminated. Termination of this Agreement will not affect the rights and responsibilities of the parties under this Agreement for transactions initiated before termination.

You may add or remove a designated account to the Internet Banking Services by calling (936) 653-4395.

Other Provisions:

(1) Funds Availability: There may be a delay between the time a deposit is made and when it will be available for withdrawal or transfer. You should review our Funds Availability Policy to determine the availability of the funds deposited. We reserve the right to refuse to complete any Internet Banking transaction that would draw upon insufficient available funds, exceed a credit limit or lower an account below a required balance.

(2) New Services: We may introduce new Internet Banking Services from time to time. By using these new Services after they become available, you agree to be bound by all terms and conditions applicable thereto.

(3) Ownership of Website: The content, information and offers on our Site are copyrighted by The Bank of San Jacinto County and unauthorized use, reproduction, linking or distribution of any portions is strictly prohibited.

(4) Governing Law: This Agreement will be governed by and construed in accordance with the laws of Texas, without regard to Texas conflict of law provisions. Your existing account relationships will continue to be governed by and construed in accordance with the laws as disclosed in such account agreements.

(5) Headings: The headings used in this Agreement are for convenience only and shall not be held to limit or affect the terms of this Agreement.

(6) Scope of Agreement: This Agreement represents our complete agreement with you relating to our provision of Internet Banking Services. No other statement, oral or written, including language in our website, unless otherwise noted, is part of this Agreement

Special Business Account Provisions: The terms and provisions of this section shall be applicable to Business Accounts only. In the event that the terms and provisions of this section conflict or are inconsistent with any of the other terms and provisions of this Agreement, the terms and provisions of this section shall govern and control. Otherwise, the other terms and provisions of this Agreement are also applicable to Business Accounts, subject to statements of inapplicability with respect to certain terms and provisions.

1. Mailings; Unauthorized Use: You agree that we may send confidential mailings, including (without limitation) ID/PIN confirmations, to the current address shown in our records for your designated account, whether or not that address includes a designation for delivery to the attention of any particular individual. You further agree that we will not be responsible or liable to you in any way in the event that such properly addressed information is intercepted by an unauthorized person, either in transit or at your place of business. You agree to: 1) keep your ID and PIN secure and strictly confidential, providing it only to authorized signers on your account(s) or other trusted employees, agents, etc., whom you want to act as your representative to access your account(s); 2) instruct each person to whom you give your ID and PIN that he or she is not to disclose it to any unauthorized person; and 3) immediately notify us and request a new ID and/or PIN if you believe your ID or PIN may have become known to an unauthorized person. You agree to be bound by any instructions transmitted through the Services, whether authorized or unauthorized, and we shall have no liability to you for any unauthorized transactions or inquiry made using your ID and PIN. We reserve the right to suspend or cancel your ID and PIN if we suspect it is being used in an unauthorized or fraudulent manner.
2. Examining Records and Reporting Discrepancies: We provide no separate written confirmation of individual transfers, payments or other transactions conducted through the
   Services. Confirmation is provided through online information available from the Services and through your periodic mailed account statements. You agree to examine your statements promptly and to notify us immediately of any discrepancy between the statements and your other account records. You also agree to notify us immediately of any discrepancy you may find in reviewing online information. You may notify us of discrepancies at the telephone numbers and address set forth in the paragraph titled "Errors or Questions". You agree that in no event will we be liable to you under this Agreement, or in performing the transactions contemplated by this Agreement, for special, indirect or consequential damages including, without limitation, lost profits or attorneys’ fees, even if we are advised in advance of the possibility of such damages, or any other damages, notwithstanding any other provisions of this agreement to the contrary.
3. Additional Terms and Conditions: You acknowledge, represent and warrant that all accounts that can be accessed under this Agreement are not accounts established primarily for personal, family or household purposes. Accordingly, the provisions of the Electronic Fund Transfer Act, as amended (15 U.S.C. 1693 et seq.), Federal Reserve Regulation E, as amended (12 C.F.R. 205), and any other laws or regulations intended for the protection or governance of consumers or consumer accounts do not apply to any transactions involving accounts subject to this Agreement, except to the extent such provisions are expressly set forth herein and are not made inapplicable with respect to Business Accounts according to the terms hereof.

Miscellaneous: In addition to this Agreement, you agree to comply with all applicable account agreements and State and Federal laws and regulations.

All notices from us will be effective when we have mailed or delivered them to your last known address on our records. Notice from you will be effective when received by us at the address specified in the Agreement. We reserve the right to change the terms and conditions upon which the services is offered. We will mail notice to you at least twenty-one (21) days before the effective date of any change, when required by law to do so. Use of Internet Banking Services is subject to existing regulations covering your account and any future changes to those regulations.

The importance of maintaining the confidentiality and privacy of the information provided by our customers is one of our highest priorities. You should carefully review our privacy policy, which is available on our website at www.banksjc.com