TREGO-WAKEENEY STATE BANK

ONLINE BANKING AGREEMENT & ELECTRONIC FUNDS TRANSFER DISCLOSURE

This Online Banking Agreement and EFT Disclosure ("Agreement") describes your rights and obligations as a user of the Online Banking Service and/or Bill Pay Service ("Services"). It also describes the rights and obligations of Trego-WaKeeney State Bank ("Bank"). Please read this Agreement carefully. By requesting and using one or both of these Services, you agree to comply with the terms and conditions of this Agreement.

Definitions

The following definitions apply in this Agreement:

Access to Services

The Bank will provide instructions on how to use the Online Banking and Bill Pay Services. You will gain access to your Online Accounts through the use of your Internet-enabled device, your ISP, your Password and your User ID. You may access your Online Accounts 24 hours a day, seven (7) days a week. However, availability of the Services may be suspended for brief periods of time for purposes of maintenance, updating and revising the software.

You may access any of your personal accounts online, one of which must be a primary checking account. Once you have selected your primary account you may select additional accounts including other checking, savings, certificates of deposit, individual retirement accounts or loan accounts.

With Online Banking and Bill Pay Services, you may:

NOTE: Because regulations require the Bank to limit preauthorized transfers (including automatic, telephone, and Online Banking transfers), the following limitations apply:

Should you exceed the permitted number of transfers/withdrawals on an account, the Bank will be required to close the account, and/or change the account to a demand deposit account.

Additional Services. New services may be introduced for Online Banking from time to time. The Bank will notify you of the existence of these new services. By using these services when they become available, you agree to be bound by the rules that will be made available to you concerning these services.

Online Banking and Bill Pay Fees

The Bank offers the benefits and convenience of Online Banking and Online Bill Pay to you for free.

We reserve the right to change the monthly maintenance fees for the use of these services. Prior to a fee change, we will notify you in writing thirty (30) days before any change goes into effect. Your use of these services after the effective date of change confirms your acceptance of the new fees. Service fees for other banking transactions may be covered in supporting documentation from the Bank, such as the account agreements and disclosures.

Registration for the Trego-WaKeeney State Bank Online Banking Service

Trego-WaKeeney State Bank Online Banking can be accessed via a menu option or "button" found on Trego-WaKeeney State Bank's home page, www.twsbank.com. You may become eligible for Online Banking by completing a Trego-WaKeeney State Bank Online Banking Application in person or by applying online. Registration forms are subject to approval by the Bank and, in order to use Online Banking, you must have an account in good standing with the Bank. By signing the Trego-WaKeeney State Bank Online Banking Application if applying in person or clicking the "Accept" button if applying online, you agree to the terms of this Agreement. Joint accounts will qualify for Online Banking provided only one signature is required to authorize withdrawals. Accounts requiring two or more signatures will not qualify for Online Banking. You must individually or jointly own all accounts accessible through Online Banking.

Equipment and Technical Requirements

It is your responsibility to acquire the software or equipment necessary to use Online Banking. To access Trego-WaKeeney State Bank Online Banking and to perform transactions, you must have an Internet access with a web browser that supports 128-bit encryption. You acknowledge that access to Online Banking and the availability of services hereunder is at all times conditioned upon the availability of the computer services, software and system used to communicate your instructions and the Bank's responses

Use of Your Security Password

You are responsible for keeping your password and Online Account information confidential. In order to protect yourself against fraud, you should adhere to the following guidelines:

You understand that all User IDs, Passwords and any other security codes (collectively, the "Codes") provided to you by the Bank in connection with Online Banking are confidential and should not be disclosed to third parties. You are responsible for the safekeeping of your Codes, and agree not to disclose or otherwise make your Codes available to anyone not authorized to sign on your accounts. If the confidentiality of your Codes is compromised, you shall notify us immediately. If you furnish your Trego-WaKeeney State Bank Online Banking Codes to another person and grant authority to that person to make bill payments who then exceeds that authority, you are liable for all subsequent bill payments and/or transfers until we have been notified that bill payments and/or transfers by that person are no longer authorized. You agree that these security procedures are commercially reasonable and are designed to authenticate your transactions.

Notification of Unauthorized Transaction or Lost or Stolen Access Device

If you believe your User ID and Password have become known by an unauthorized person or has been lost or stolen, or that someone has made bill payments or transferred money without your permission, call the Bank immediately at 785-743-2104 between the hours of 8:00 a.m. and 4:30 p.m., Monday through Friday. Telephoning the Bank is the best way of minimizing your losses and liability.

If you believe your Password has been lost or stolen, you should use the Password change feature within the Online Banking section of the Web site to change your Password.

Electronic Mail

If you send the Bank an e-mail message, the Bank will be deemed to have received it on the following business day. You should not rely on e-mail if you need to report an unauthorized transaction from one of your accounts or if you need to stop a payment that is scheduled to occur.

Confidentiality and Security

The circumstances, under which we will disclose information about you or your accounts, have been separately disclosed to you in our Privacy Policy and in other disclosures, which have been provided directly to you. Our Privacy Policy may change from time to time and is always available on-line and at our banking office.

Web Transfers

Web transfers may be scheduled using the Trego-WaKeeney State Bank Online Banking service between accounts at the Bank which have been made accessible via Online Banking. Account transfers initiated before 3:00 p.m. will post to your account the same day. Account transfers initiated after 3:00 p.m. will post to your account the next business day. Scheduled one-time and recurring transfers may be changed or cancelled until 2:00 p.m. on the "effective date".

Bill Pay Services

The Bill Pay Service permits you to use your internet-enabled device to direct payments from your designated online Bill Pay Account to third parties you wish to pay. Your Bill Pay Account must be a primary checking account. Through the Bill Pay Service, you can pay bills from your Bill Pay Account to businesses or individuals.

Bill payments may be initiated in two different transaction modes - One-Time and Recurring. In order to pay bills, you must establish your payees. Payees may either receive payments via an electronic transmission or a check drawn on your account. Electronic payments will typically be received by the payee within two (2) business days, and will be deducted from your account on the date the transfer is initiated. Check or paper payments will typically be received by the payee within five (5) business days, and will be deducted from your account at the time you initiate the check to the payee, if funds are available in the funding account.

You understand that if a bill payment request describes the beneficiary inconsistently by name and account number, execution of the request will occur on the basis of the account number, even if it identifies a person other than the named beneficiary.

You must allow sufficient time for the payee to receive the bill payment before the due date the payee provides you, excluding grace periods. If you do not allow sufficient time for a bill payment, you assume full responsibility for all late fees, finance charges and any other actions initiated by the payee against you. If a check or paper bill payment is not received by a payee for any reason, with your authorization, the Bank will place a stop payment on the check and the Bank's normal stop payment fees will be assessed. In all instances, it is your responsibility to reschedule the bill payment.

If an electronic payment transaction is not processed because there are insufficient funds in the funding account, we are not responsible for the failure of this transaction. You will receive a message within your Online Banking service advising you that the bill payment transaction could not be processed. In this instance, the service will continue to retry processing the payment until funds are available. If there are insufficient available funds in your account at the time a bill payment check is presented for payment, the check may be returned to the payee and the Bank's normal insufficient funds or returned check fee will be assessed.

If more than one person has access to a Bill Pay Account, each person may individually enroll in the Bill Pay Service. Each enrolled person needs a unique password but may choose to use the same payee list. Each individual may terminate his/her enrollment in the Bill Pay Service without affecting the Service for any other person enrolled in that Bill Pay Account. However, any enrolled person may terminate the Bill Pay Service that will terminate the service for all enrolled persons on that Bill Pay Account.

The Bank is responsible only for exercising reasonable and ordinary care in making bill payments upon your authorization and for sending or mailing a bill payment to the designated payee based on the circumstances as outlined.

Authorization to Charge Accounts

You authorize the Bank to charge your account(s) and facilitate the requests you initiate using Online Banking for bill payments and/or transfers, including the amount for any recurring bill payment or transfer, plus any service charges for Online Banking or Bill Pay without requiring your signature on the item and without prior notice to you.

Before any bill payment and/or transfer requests are processed, sufficient available funds must be in the account(s) from which the funds are to be debited.

You understand that in adding a payee or maintaining a payee list, even if no payments are scheduled, you are electing to use the full Trego-WaKeeney State Bank Online Banking service with the Bill Payment feature and therefore will be charged accordingly. You authorize the Bank to process bill payments and to transfer funds according to the instructions the Bank receives if the instructions are received by the Bank through Online Banking. You authorize the Bank to initiate any reversing entry or correcting entry and to debit your account(s) at Trego-WaKeeney State Bank or elsewhere, in order to correct any mistaken entry.

Documentation and Verification of Bill Payments and Transfers

Confirmation Numbers

Upon scheduling of a transaction using Online Banking, a confirmation number will be given. You should record this number, along with the payee, scheduled date and transaction amount in your checkbook register (or other permanent record) or you may wish to print the confirmation screen. These procedures will help in resolving any problems that may occur. Other than your ability to print the confirmation screen, no printed receipts are issued through Online Banking.

Preauthorized Deposits or Transfers

If you have arranged to have direct deposits or transfers made to your account, you can find out whether or not they have been made through Online Banking.

Periodic Statements

Information concerning Trego-WaKeeney State Bank Online Banking transactions will be shown on your normal monthly checking account statement for the account(s) from which bill payments or transfers are made. If you have a savings account linked to Online Banking, you will receive a monthly savings statement unless there are no electronic transactions in a particular month; you will at least receive a quarterly savings statement if there is no electronic activity.

Liability for Unauthorized Use

You will notify the Bank immediately if you believe your User ID, Password and any other security codes (collectively, the "Codes") have become known to an unauthorized person, or have been lost or stolen. The best way to keep your possible losses to a minimum is to telephone or e-mail the Bank. If you suggest that an unauthorized bill payment or transfer may have occurred, we may require you to sign an affidavit concerning the details. Your liability for unauthorized use is limited by Regulation "E" (which implements the Electronic Fund Transfer Act) and Regulation "Z" (which implements the Truth in Lending Act) which provide:

Financial Institution's Liability

If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages as provided by law. However, there are some exceptions. We will NOT be liable, for instance:

Standard of Care

The Bank will use due care and act in good faith in connection with providing the services to you. The Bank does not warrant or represent that Online Banking will operate uninterrupted or that Online Banking will be error free. The Bank will use reasonable commercial efforts under the circumstances to contract with third parties as required for the products and services on which Online Banking is dependent including, but not limited to: communication carriers, network service providers, equipment manufacturers and their associated hardware and software providers.

Error Resolution

You will telephone us at 785-743-2104, send an e-mail via the Trego-WaKeeney State Bank Online Banking service or write Trego-WaKeeney State Bank, Attention: Online Banking, P.O. Box 187, WaKeeney, KS, 67672, as soon as you realize your statement or receipt is wrong or if you need more information about a bill payment or transfer listed on the statement or receipt. The Bank must hear from you no later than sixty (60) days after we sent the FIRST statement on which the problem or error appeared. You must:

If you tell us verbally, we may require you to send to us your complaint or question in writing within ten (10) business days. We may also require you to provide your complaint in the form of an affidavit. We will tell you the results of our investigation within ten (10) business days (20 business days for new accounts) 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 (ninety (90) days for new accounts and foreign initiated or point of sale transfers) to investigate your complaint or question. If we decide to do this, we will re-credit your account within ten (10) business days (twenty business (20) days for new accounts) for the amount you think is in error, so that you will have the use of your 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. The extended time periods for new accounts apply to all electronic fund transfers that occur within the first thirty (30) calendar days after the first deposit to the account is made, including those for foreign initiated or point of sale transactions. If the Bank determines there was no error, we will send you a written explanation within three (3) business days after we finish our investigation. You may ask for copies of the documents we used in our investigation.

Account Information Disclosure

We have the right to disclose information to third parties about your account and the bill payments or transfers you make:

Other Conditions

You are responsible for complying with all Terms and Conditions of this Agreement and the regulations governing the deposit accounts which you access using Online Banking. We can terminate your Trego-WaKeeney State Bank Online Banking privileges without notice to you if you do not pay any fee(s) as detailed in this Agreement when they are due, or if you do not comply with the terms of any agreements associated with your accounts and/or your Trego-WaKeeney State Bank Online Banking service, as modified from time to time.

Except as governed by federal law or regulation, the Terms & Conditions of this Agreement shall be governed by the substantive laws of the United States and the laws of the state of Kansas, without regard to such state's rules regarding conflict of laws and without regard to your state of residence. The venue for all litigation relating to this Agreement shall be in any county in Kansas in which the Bank has a retail office.

Change in Terms

Changes in the terms of the Trego-WaKeeney State Bank Online Banking Agreement & Electronic Funds Transfer Disclosure may be made by the Bank from time to time and shall become effective upon the earlier of:

Terms and Conditions Disclosure

By using Online Banking, you acknowledge receipt of and agree to be bound by this Trego-WaKeeney State Bank Online Banking Agreement & Electronic Funds Transfer Disclosure as well as the Trego-WaKeeney State Bank's Checking and Savings Account Disclosures, which were received by you at the time your account was opened, plus any amendments to these instruments, which will be furnished to you as they occur. If there are any changes with any of these agreements and/or disclosures, the latest dated document will govern.

Notices

Unless otherwise required by applicable law, any notice or written communication given pursuant to this Agreement may be sent to you electronically. All notices to you shall be sent to your email address as it appears in our account records. If there is more than one signer on an account, notice to one of you is notice to all.

Notices to the Bank shall be sent to Trego-WaKeeney State Bank, Attention: Online Banking, PO Box 187, WaKeeney, KS, 67672, or may be sent by electronic mail using the Trego-WaKeeney State Bank Online Banking service. Other than as specifically provided herein, notices to the Bank are effective when received.

Right of Termination

You may cancel your Online Banking and/or Bill Pay Services at any time by calling or providing written notice to the Bank. If you have payments or transfers scheduled after cancellation, it is your responsibility to make other arrangements for those payments or transfers.

We may immediately terminate your Online Banking and/or Bill Pay privileges without notice to you under the following circumstances:

We will promptly notify you if we terminate this Agreement or your use of the Services for any other reason.

Disclaimer of Warranties

Except as expressly set forth in this Agreement, the Bank makes no representations or warranties, expressed or implied, including without limitation any warranty or merchantability or fitness for a particular purpose with respect to the services to be provided under this Agreement. The Bank does not own the software which is incorporated in the Trego-WaKeeney State Bank Online Banking Service or Bill Pay Service.