Prime Security Bank Internet Banking
Terms and Conditions Agreement
and Disclosure Statement

This agreement states the terms and conditions that apply when you use the Prime Security Bank Internet Banking Service. The terms and conditions detailed below are to be added to the terms and conditions you have already received in relation to any accounts you have with us or for any services you have obtained from us. You must follow all of our instructions and procedures applicable to the services covered under this agreement. This agreement is subject to the laws of the United States of America and the State of Minnesota. To the extent that the laws of another State may apply, you agree that the State of Minnesota will have jurisdiction.

The terms "we", "us", "our", and "Bank"refer to Prime Security Bank and any of its affiliates. The terms "you"and "your"refer to the user of the site who establishes an Internet Banking Customer Account with us, or that uses or is authorized to use an Internet Banking Identification Code (User ID) and Password or other means to establish access. The term "Internet Banking Service"refers to the service provided by the Bank that will allow you to access your accounts via the internet by means of a personal computer or any other means we authorize or allow. Internet Banking provides a number of options including the ability to make loan payments, access and transfer funds between accounts, change your address, and view your statements.

Internet Banking User ID and Password

To access our Internet Banking Service, you must use the User ID and Password and/or other means of access that we provide to you for your Internet Banking Customer Account. It is your responsibility to safeguard this User ID and Password. Anyone who is given or obtains access to your User ID and Password and/or other means of access will have full access to your accounts at the Bank. You agree to notify us immediately upon theft or compromise of your password or upon discovery of any transactions that you did not authorize. Upon three unsuccessful attempts, your access to the system will be revoked. To re-establish access, you must contact us to have your password reset or obtain a new temporary password.

Security

You understand the importance of your role in preventing the misuse of your account through the Internet Banking Service and agree to review your paper statement promptly for each account you have with us for misuse. You understand that identification information by itself or in combination with account information may allow unauthorized access to your account. Your User ID and Password are intended to provide security against unauthorized entry and access to your accounts. Banking data transferred over the internet is encrypted in an effort to provide security during transmission. Our system utilizes identification technology to verify that the sender and recipient of any system transmissions can be appropriately identified by each other.

Virus Protection

Prime Security Bank is not responsible for any electronic viruses that you may encounter. We encourage users to routinely scan their personal computers and diskettes using a reliable virus detection product. Viruses should be isolated and removed. Undetected viruses or viruses that have been detected and not promptly removed may lead to corrupted files, programs, and hardware.

Internet Banking Account Owner Information

In order to obtain access to an account, you must be a direct owner on the account. You may not designate an account for internet access if it is an account that requires more than one signature for withdrawals.

Internet Banking Transactions

You, or anyone you have authorized by giving them your Internet User ID and Password or other means of access, may perform the following transactions

• Make transfers between your qualifying accounts to the extent authorized
• Obtain information that we make available about your qualifying accounts.
• Obtain other services and perform any other transactions that we authorize.

Please note that we are not bound by any limitation on authority that you may have placed upon the person(s) to whom you have authorized access to your account(s). Limits on Internet Banking Transactions

• You must have enough collected funds in the account from which you instruct us to make the transfer or payment. If you do not have collected funds sufficient to cover the amount of your transfer or payment request, we may but are not obligated to complete the transfer or payment.
• For savings accounts, transfers or payments made to another account or to third parties via pre-authorized, automatic, telephone, or internet transactions are limited to six per month with no more than three of these transfers or payments being made by check, debit card, or similar order to third parties.
• You also agree to be bound by any other terms and conditions you received when you opened your deposit account, or that you may have received subsequent to opening your deposit account.

• If we fail to complete a transfer or payment from your account on time or for the correct amount, we will generally be liable for your losses and damages. A few exceptions where we will not be liable are detailed below:
• Through no fault of the Bank, you do not have enough money available in the account from which the transfer or payment is being made, or the account from which the transfer or payment is to be made is closed or is not in good standing.
• We reverse a transfer or payment due to insufficient funds, or the transfer or payment would cause you to exceed the credit limit established for your account(s).
• If your computer equipment or ours is not working properly and the breakdown should have been apparent to you when you attempted to complete the transaction.
• If you have not given us complete, correct, and current account numbers or other identifying information to allow us to properly complete the transaction.
• You provide us with wrong, incomplete, or inaccurate information or fail to correct or tell us about any inaccuracy in the information you supplied to us, provided you were aware of the inaccuracy.
• You do not completely and properly follow our instructions.
• You do not contact us in time for your transfer or payment to be received and credited by the time it is due.
• The funds in the account from which a payment or transfer is to be made is subject to a legal process or other claim or restriction that inhibits the transaction or circumstances beyond our control and prevents, delays, intercepts, or alters the transaction, despite reasonable precautions we have taken.
• The failure was due to fire, flood, tornado or other natural disaster, or from the loss of a telephone line or other communication device, computer failure, or other circumstances beyond our control.
• We have legitimate reason to believe that the requested transaction is unauthorized.
• We have legitimate reason to believe that the requested transaction is fraudulent or otherwise illegal.

We will also not be liable for any incidental or consequential damages resulting from our failure to complete your transfer or payment request.

Your Liability and Indemnity

You warrant that you will perform your obligations under the Internet Banking Terms and Conditions Agreement consistent with all applicable Bank rules and regulations. You also warrant that all of the information you provide to us is accurate, timely, and has been authorized by you. In the event that you breach any of the foregoing warranties, you agree to indemnify Prime Security Bank against any loss, liability, or expense. You also agree to hold Prime Security Bank harmless for any and all acts of employees or other persons to whom you grant access or who gain access to your Internet Banking Customer Account.

Business Days

Internet Banking Service is normally available 24 hours a day, 7 days a week. However, we only process transactions and update information on business days. Our business days are Monday through Friday, with the exception of holidays. Transfers made after 3:00 p.m. CST will be processed on the next business day.

Statements

The transfers and payments you make on the Prime Security Bank Internet Banking Service will be detailed on the periodic account statements that we provide. You agree to notify us promptly if you change your address, or if you believe that there are any errors or unauthorized transactions on your statement(s).

Charge for Transactions

You agree to be charged for applicable Internet Banking transactions as shown below:

• There is no charge for Internet Banking Service

Unauthorized Transactions and the Loss or Theft of Your Internet Banking User ID and Password

If you believe your Internet Banking User ID and Password or any other means of access to your account(s) have been lost, stolen, or used by someone else without your approval, please contact us immediately at:

Prime Security Bank
1305 Vierling Drive
Shakopee, MN 55379
Voice (952) 403-6405
Fax (952) 403-6272

Or,

Prime Security Bank
201 Main Street
P.O. Box 219
Karlstad, MN 56732
Voice (218) 436-2151
Fax (218) 436-2154

Contacting us immediately by telephone during bank business hours is the best way to limit your possible losses.

If a loss occurs in your account(s) and you notify us regarding the unauthorized transaction, your liability for the loss that occurred will be as follows:

• If you notify us within 60 business days of discovering the loss, your liability for any losses that occurred will be limited to $50.00.
• If you do not contact us within 60 business days after the discovery of the loss, theft, or unauthorized use of your Internet Banking User ID and Password and we prove that we could have prevented the unauthorized access to your account had we learned the information, your liability for any losses that occurred could be as much as $500.00.
• Please contact us immediately if your paper statement indicates a transfer or payment that you did not authorize. If you do not notify us within 60 days after the paper statement was mailed to you, you may be responsible for the entire amount of the loss if we prove that we could have prevented the loss if you had told us in time.

If you have given someone your Internet Banking User ID and Password or other means of access and want to terminate that person's access, you must change your password. Until you change your password, that person will have full access to your Internet Banking Customer Account.

Confidentiality

Prime Security Bank will only disclose account information to authorized third parties under the following circumstances:

• When a request for account information is received from a government agency or court of law
• When the disclosure of information is necessary in order to complete a requested When we routinely verify the existence and condition of your account to a third party such as a credit reporting agency
• When you deliver to us written permission to release account information to a third party

Please see the Bank's Privacy Policy for further details.

Other Terms

As you access the Prime Security Bank Internet Banking Service for the first time, you will implicitly agree to be bound by the terms and conditions of this Internet Banking Terms and Conditions Agreement and Disclosure Statement.

You may terminate this Agreement at any time upon providing Prime Security Bank with a written notice. After you terminate your Agreement, you authorize us to continue making transfers that you have previously authorized until we have had a reasonable period of time to act upon your termination request. Once we have acted upon your termination request, your Internet Banking Customer Account will be cancelled and you will no longer be able to access your account information on the internet.

We may terminate this Agreement at anytime upon proper notice. If we terminate the use of your Internet Banking Customer Account, we reserve the right to make no further transfers or payments from your account(s), including any transfer(s) that you may have previously authorized.

If any provision of this Agreement shall be rendered unenforceable, the remaining provisions shall continue to apply.

You agree to abide by all of the terms and conditions contained therein at all times.