This Online Banking Agreement ("the Agreement") explains the terms and conditions governing the use of basic Online Banking Services offered by HomeTown National Bank. All Online Banking Services of any kind whatsoever offered by HomeTown National Bank (including, but not limited to funds transfers) will be referred to collectively as “Online Banking Services” in this Agreement. "You" refers to each person(s) who opens, or those individuals authorized to use any account at HomeTown National Bank and any person(s) who have been given a Login ID and Password chosen by the customer. The term "business day" means all days except Saturday, Sunday, and all banking holidays. By using any of the Online Banking Services, you agree to abide by the terms and conditions of this Agreement as well as the "Deposit Account Agreement and Disclosure", a copy of which you received when you opened your deposit account with us. You may receive another copy upon request.

All Online Banking Services offered by HomeTown National Bank are governed by this Agreement, as well as by applicable federal and state laws and regulations and the Deposit Account Agreement of HomeTown National Bank. All applicable fee schedules published by HomeTown National Bank from time to time will apply to the Online Banking Services. You are responsible for the payment of any fees incurred by you on any account, for any service, at any time. You agree to pay all such fees upon request of HomeTown National Bank. Further, you agree to pay all telephone charges or fees incurred by you in accessing Online Banking Services. Online Banking Services requires you to have Internet access established.

You may use Online Banking to check the balance of your HomeTown National Bank accounts, view account histories, transfer funds between your accounts, pay bills, and send us emails.

You may use Online Banking seven days a week, twenty-four hours a day, and all on-line transactions will be available to view immediately.

By submitting this Form:

You agree that your use of the Online Banking Services will confirm that you have completed and reviewed this Agreement and applicable disclosures, any of which HomeTown National Bank may amend from time to time. Your initial use of any Online Banking Service in connection with your account(s) at HomeTown National Bank constitutes your acceptance and agreement to be bound by all of the terms and conditions of this Agreement.

In order to take advantage of other Online Banking offered, you understand that you must complete this agreement to establish basic Online Banking Services with HomeTown National Bank. All services later added are covered under this agreement and your signature authorizes HomeTown National Bank to carry out transactions under any other Online Banking Services you decide to use or set-up at a future date, such as Bill-Payment Services. By using any new service, you agree to be bound by the terms communicated to you in advance.

HomeTown National Bank will not provide any receipt or documentation of transactions other than regular account statements.

Security

You understand that your Password and Login ID can be used to expend funds from your account and that this code must be safeguarded. You authorize HomeTown National Bank and its agents to follow any instructions transmitted by use of this code, and agree to be bound thereby. If accessing a business or non-commercial account, you certify that you are authorized to use the Login ID and Password. HomeTown National Bank is entitled to act upon instructions received through any Internet Banking Service under your Login ID and Password without inquiring into the identity of the person using the Login ID or Password. However, you agree that you will not, under any circumstances, disclose your Login ID or Password to any person. You are liable for all transactions made or authorized using your Login ID and Password. HomeTown National Bank has no responsibility for establishing the identity of any person or determining the validity of any transaction received using your Login ID or Password. If you provide your Login ID or Password to anyone, you authorize any transactions carried out by that person. HomeTown National Bank assumes all transactions authorized by your Login ID and Password are legitimate. You hereby indemnify and release HomeTown National Bank from any and all liability and agree not to make any claim against HomeTown National Bank or bring any action against HomeTown National Bank in honoring or allowing any actions or transactions where you have authorized the person performing the action or transaction to use your account or when you have provided your Login ID or Password to that person.

For security purposes, you are required to change your password upon your initial login to Online Banking. You determine what password you will use and the identity of your password is not communicated to us. You agree that we are authorized to act on instructions received under your login and password. You accept responsibility for the confidentiality and security of your password and agree to change your password regularly. Upon three unsuccessful attempts to use your password, your access to Online Banking will be revoked. To re-establish your authorization to use Online Banking, you must contact us to have your password reset. We recommend that you create a password that utilizes both upper and lower case alpha and numeric characters for purposes of security. Your password should not be associated with any commonly known personal identification, such as social security numbers, address, date of birth, names of children, and should be memorized rather than written down. Each individual who has access to the Service must choose a separate Login ID and password.

You will notify HomeTown National Bank at once if you believe another person has improperly obtained your Login ID/Password or has carried out unauthorized transactions. At any time, you may ask HomeTown National Bank to disable your Login ID or Password and issue a new one to you.

For multiple party accounts, each person on a multiple party account will be liable for all transactions that are made on that account. Each owner(s) on a multiple party account(s) agrees to be liable for the actions of the other owner(s) on the account.

You understand the importance of your role in preventing misuse of your accounts through Online Banking and you agree to promptly examine your paper statement for each of your HomeTown National Bank accounts as soon as you receive it. You agree to protect the confidentiality of your account and account number, and your personal identification information, such as your driver’s license number and social security number. You understand that personal identification information by itself, or together with information related to your account, may allow unauthorized access to your account. Your password and login ID are intended to provide security against unauthorized entry and access to your accounts. Data transferred via online banking is encrypted in an effort to provide transmission security and HomeTown National Bank utilizes established security standards and procedures to keep your financial information secure and confidential, and to verify that the sender and receiver of online banking transmissions can be appropriately identified by each other.

Contact us as soon as you can, if you think your paper statement is wrong, or if you need more information about a transfer listed on your paper statement. We must hear from you no later than 60 days after we sent the FIRST paper statement upon which the problem or error appeared. When you contact us:

a) Tell us your name and account number.

b) Describe the error or 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.

c) Tell us the dollar amount of the suspected error.

If you contact us by telephone or by e-mail, we may require that you send us your complaint or question in paper form by postal mail or fax within 10 business days.

We will communicate to you the results of our investigation within 10 business days after you contact us and will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question. If we decide to do this, we will provisionally credit your account within 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 in paper form within 10 business days, we may not provisionally credit your account.

If we decide that there was no error, we will send you a written explanation within 3 business days after we finish our investigation. You may ask for copies of the documents that we used in our investigation. If we have made a provisional credit, a corresponding debit will be made from your account.

Our Liability for Failure to Make a Transfer

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 when you have properly instructed us to do so, we will be liable to you for your losses or damages caused as a result. However, there are some exceptions. We will NOT be liable, for instance:

a) If, through no fault of ours, you do not have enough money in your account to make a transfer.

b) If a legal order directs us to prohibit withdrawals from the account.

c) If your account is closed, or if it has been frozen.

d) If the transfer would cause your balance to go over the credit limit of an established line of credit or the credit limit for any credit arrangement set up to cover overdrafts.

e) If you, or anyone authorized by you, commits any fraud or violates any law or regulation.

f) If any electronic terminal, telecommunication device, or any part of the online banking electronic fund transfer system is not working properly and you knew about the problem when you started the transfer.

g) If you have not properly followed the on-screen instructions for using Online Banking.

h) If circumstances beyond our control (such as fire, flood, interruption in telephone service or other communication lines) prevent the transfer, despite reasonable precautions that we have taken.

Your Liability for Unauthorized Transfers

CONTACT US AT ONCE if you believe your password has been lost, stolen, used without your authorization, or otherwise compromised, or if someone has transferred or may transfer money from your accounts without your permission. An immediate telephone call to us is the best way to reduce any possible losses. You could lose all the money in your accounts (plus your maximum overdraft line of credit, if any). If you contact us within 2 business days after you learn of the loss, theft, compromise, or unauthorized use of your password, you can lose no more than $50 if someone used your password without your permission.

If you do NOT contact us within 2 business days after you learn of the loss, theft, compromise, or unauthorized use of your password, and we can prove we could have stopped someone from using your password to access your accounts without your permission if you had told us, you could lose as much as $500.

Also, if your paper statement shows transfers that you did not make, contact us at once. If you do not tell us within 60 days after the paper statement was mailed to you, you may not get back any money you lost through transactions made after the 60 day time period 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 hospital stay) kept you from contacting us, we will extend the time periods.

Disclaimer of Warranty and Limitation of Liability

We make no warranty of any kind, express or implied, including any implied warranty of merchantability or fitness for a particular purpose, in connection with the Online Banking Services provided to you under this Agreement. We do not and cannot warrant that Online Banking will operate without errors, or that any or all Online Banking Services will be available and operational at all times. Except as specifically provided in this Agreement, or otherwise required by law, you agree that our officers, directors, employees, agents or contractors are not liable for any indirect, incidental, special or consequential damages under or by reason of any services or products provided under this Agreement or by reason of your use of or access to Online Banking, including loss of profits, revenue, data or use by you or any third party, whether in an action in contract or tort or based on a warranty. Further, in no event shall the liability of HomeTown National Bank and its affiliates exceed the amounts paid by you for the services provided to you through Online Banking.

Change in Terms

We may change any term of this Agreement at any time. If the change would result in increased fees for any online banking service, increased liability for you, fewer types of available electronic fund transfers, or stricter limitations on the frequency or dollar amount of transfers, we agree to give you notice at least 21 days before the effective date of any such change, unless an immediate change is necessary to maintain the security of an account or our electronic fund transfer system. We will post any required notice of the change in terms on the HomeTown National Bank website or forward it to you by e-mail or by postal mail or bank statement notification. If advance notice of the change is not required, and disclosure does not jeopardize the security of the account or our electronic fund transfer system, we will notify you of the change in terms within 30 days after the change becomes effective. Your continued use of any or all of the online banking services indicates your acceptance of the change in terms. We reserve the right to waive, reduce or reverse charges or fees in individual situations. You acknowledge and agree that changes to fees applicable to specific accounts are governed by the applicable deposit agreements and disclosures.

Your Right to Terminate

You may cancel your Online Banking service at any time by providing us with written notice by postal mail or fax. Your access to Online Banking will be suspended within 3 business days of our receipt of your instructions to cancel the service. You will remain responsible for all outstanding fees and charges incurred prior to the date of cancellation.

Our Right to Terminate

You agree that we can terminate or limit your access to Online Banking Services for any of the following reasons:

a) Without prior notice, if you have insufficient funds in any one of your HomeTown National Bank accounts. Online Banking service may be reinstated, in our sole discretion, once sufficient funds are available to cover any fees, pending transfers, and debits.

b) Upon 3 business days notice, if you do not contact us to designate a new Primary Checking Account immediately after you close your Primary Checking Account.

c) Upon reasonable notice, for any other reason in our sole discretion.

The limitations of liability set forth in this Agreement are subject to, and limited by any state or federal law to the contrary.

HomeTown National Bank has the right to modify or terminate this Agreement or the Deposit Account Agreement at any time. When making changes, HomeTown National Bank will comply with all legal notice requirements. Once this Agreement is terminated, HomeTown National Bank will not allow any additional transactions on the account, nor will additional Online Banking Services be permitted. If this Agreement is modified, your continued use of the Account will represent your acceptance of the changes.

Access

To use Online Banking you must have a checking account at HomeTown National Bank, access to the Internet, and an e-mail address. You must use a Login ID and a password to access the Service and acknowledge acceptance of the HomeTown National Bank Online Banking Agreement upon your initial log in. You can add or delete any of your HomeTown National Bank accounts from this Agreement by contacting us during normal business hours.

Hours of Access

You can use Online Banking seven days a week, twenty-four hours a day, although some or all Online Banking services may not be available occasionally due to emergency or scheduled system maintenance.

Notices

Any notice permitted or required under the terms of this Agreement shall be deemed to be given when deposited in the United States Mail, addressed to the other party at their last known address, or such other address as the party has designated, or by causing notice to be served personally upon the other party.

In the event any portion of this Agreement or any part thereof shall be determined to any court of competent jurisdiction to be invalid or otherwise unenforceable, the remaining provisions hereof shall remain in full force and effect.

All previous understandings and agreements between the parties are merged in this Agreement and neither party is relying upon any statement or representation not embodied in this Agreement, made by the other.

In the event of any suit or proceeding arising out of this agreement, the losing party shall pay to the prevailing party such sum or sums as the Court shall adjudge reasonable for attorneys' fees for such prevailing party.

This agreement shall be binding upon the heirs, personal representatives, administrators, executors, successors and assigns of the parties hereto.

This Agreement shall be governed by and construed in accordance with Federal law and regulations and to the extent state law is applicable, by the laws of the State of

Washington

. In the event either party is required to maintain an action to enforce their rights under this agreement, jurisdiction for any such action shall be vested with the District Court for the State of Washington and venue shall lie in Cowlitz County, Washington.

Business and Other Non-personal Accounts

The Bank’s obligations and the limitations on your liability do not apply in the case of business or other non-personal accounts. Under no circumstances will we be liable for any special or consequential damages involving such accounts. The owners of non-personal accounts must notify us immediately if they discover any unauthorized transactions or errors, and must send us a written notice of the problem within a reasonable time (not to exceed 14days from the date of discovery or their receipt of the first statement or notice reflecting the problem, whichever occurs first). We may process any Online instruction we believe is given by any of you if the instruction is accompanied by your Login ID and password, and you will be obligated for the transfer or payment, even if the instruction is not transmitted or authorized by you. The owner of a business account is liable for all transactions that occur on the account. The owner of the business account agrees to be liable for any other parties designated (by being given the Login ID or password) to conduct business on the account(s).