MBank Online Banking Agreement

Agreement - This Agreement, which includes the Fee Schedule and Enrollment Form, is a contract establishing the rules, which cover your electronic access to your accounts at MBank "BANK" through Merchants eBank "SYSTEM" . By using SYSTEM, you accept all terms and conditions of this Agreement. Please read it carefully. The terms and conditions of the deposit agreements and disclosures for each of your BANK accounts as well as your other agreements with BANK such as loans, continue to apply notwithstanding anything to the contrary in this Agreement. This Agreement is also subject to applicable federal laws and the laws of the State of Oregon except to the extent this Agreement can and does vary such rules or laws . If any provision of this Agreement is found to be unenforceable according to its terms, all remaining provisions will continue in full force and effect. The headings in this Agreement are for convenience or reference only and will not govern the interpretation of the provisions. Any waiver express or implied by either party of any default or breach of this Agreement must be in writing and shall not constitute a waiver of any other or subsequent default or breach. You may not assign this Agreement. This Agreement is binding upon your heirs and BANK's successors and assigns. Certain of the obligations of the parties pursuant to this Agreement that by their nature would continue beyond the termination, cancellation or expiration of this Agreement shall survive termination, cancellation or expiration of this Agreement. This Agreement, together with the Enrollment Form and Fee Schedule, constitutes the entire agreement between you and BANK with respect to the subject matter hereof and there are no understandings or agreements relative hereto which are not fully expressed herein.

Definitions - As used in this Agreement, the words "we", "our", "us" and "BANK" mean MBank. "You" and "your" refer to the account holder authorized by BANK to use SYSTEM under this Agreement and anyone else authorized by that account holder to exercise control over the account holder's funds through SYSTEM. "Account" or "accounts" means your accounts at BANK. "Electronic fund transfers" means ATM withdrawals, pre-authorized transactions, point of sale transactions and transfers to and from your BANK accounts using SYSTEM including bill payments. "SYSTEM Services" means the services provided pursuant to this Agreement, including the Bill Payment Service. "Business days" means Monday through Friday. Holidays are not included.

Internet Security Information - Our Internet Banking service utilizes a comprehensive security strategy to protect accounts and transactions conducted over the Internet. In addition to our login security, we use SSL secure socket layer encryption technology for everything done in the system. Your browser automatically activates this technology when it attempts to connect to our system and it will support 128-bit key lengths. Whenever SSL is securing your communications, the browser will typically indicate the "secure session" by changing the appearance of a small padlock icon at the bottom of the screen from open to locked. What this means to you is that your communications are scrambled from your browser to our servers at all times, so no unauthorized party can read the information as it is carried over the Internet. Additionally, our servers have been certified by a "Certificate Authority" to assure you that you are actually talking to our servers instead of someone pretending to be us.

During your use of the Internet Banking system, we will pass a "cookie" to your browser to identify you. We do not and cannot use our cookies to obtain new information about you. A "cookie" is security data given to a browser by a web server and returned by the browser on subsequent transmissions to identify the user and encryption information. When you log onto the system, this cookie enables us to process multiple transactions during the session without you having to provide your Login ID and password for each individual transaction. After a predetermined amount of time set by our security system or when you log off, the session cookie is no longer accepted. A new cookie is used for each session, so that no one can use the cookie to access your account. For Cash Management users, a cookie may also be used to restrict access to a specific PC for conducting business transactions.

Registration Process - The service requires the customer to complete the initial registration process. This involves printing an Enrollment Form and mailing it to our office. The information on the Enrollment Form will identify everything we will need to enable the service. Once we verify the information you submitted for accuracy and authorizations, you will be notified when your account will be activated by mail.

Access - To use SYSTEM, you must have at least one account at BANK, access to Internet service and an email address. Once we have received your signed Enrollment Form and verified your account information, we will send you e-mail confirmation of our acceptance of your enrollment, along with your assigned Login ID. Your temporary password will be forwarded through the postal system. SYSTEM can be used to access only the BANK accounts designated for access by SYSTEM in your Enrollment Form. You can add or delete any of your BANK accounts from this Agreement by completing a new Enrollment Form. Access to your accounts through SYSTEM will be based upon the identification of users and authority levels specified by you in your Enrollment Form. We undertake no obligation to monitor transactions through SYSTEM to determine that they are made on behalf of the account holder.

SYSTEM Services - You can use SYSTEM to check the balance of your BANK accounts, view BANK account histories, transfer funds between your BANK accounts, order checks, make stop payment requests, change your address and pay bills from your BANK accounts in the amounts and on the dates you request if you have requested the Bill Payment Service on your Enrollment Form. Balance and activity information are available as of 3:00 a.m. Pacific Standard Time for the previous day.

Hours of Access - You can use SYSTEM seven days a week, twenty-four hours a day, although occasionally some or all SYSTEM services may not be available due to emergency or scheduled system maintenance. We agree to post notice of any extended periods of non-availability on the SYSTEM website.

Your Password - For security purposes, you are required to change your password upon your initial login to SYSTEM. You determine what password you will use; the identity of your password is not communicated to us. 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 and agree to change your password regularly. Upon three unsuccessful attempts to use your password, your access to SYSTEM will be revoked. To re-establish your authorization to use SYSTEM, you must contact us to have your password reset or to obtain a new temporary password. 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 or names of children, and should be memorized rather than written down.

Security - You understand the importance of your role in preventing misuse of your accounts through SYSTEM, and you agree to promptly examine the paper statement for each of your 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 SYSTEM is encrypted in an effort to provide transmission security; SYSTEM utilizes identification technology to verify that the sender and receiver of SYSTEM transmissions can be appropriately identified by each other. Notwithstanding our efforts to ensure that the SYSTEM is secure, you acknowledge that the Internet is inherently insecure and that all data transfers, including electronic mail, occur openly on the Internet and can potentially be monitored and read by others. We cannot and do not warrant that all data transfers utilizing BANK SYSTEM, or email transmitted to and from us, will not be monitored or read by others.

Fees and Charges - You agree to pay the fees and charges as set forth in the current fee schedule for your use of SYSTEM Services. You agree that all such fees and charges will be deducted from the BANK checking account designated as the "Primary Checking Account" on your Enrollment Form. If you close your Primary Checking Account, you must contact us immediately to designate another account as your Primary Checking Account. You agree to pay any additional reasonable charges for services you request not covered by this Agreement. You are also responsible for telephone and Internet service fees incurred in connection with your use of SYSTEM. Current Fees: Online Banking is free of service charges. Online Bill Pay is free for 60 days, $6/month thereafter for up to 15 bills. Additional bills are $.40 each for personal accounts, $1.50 each for business accounts.

Posting of Transfers - Transfers initiated through SYSTEM before 3:00 p.m. Pacific Standard Time on a business day are posted to your account the same day. Transfers completed after 3:00 p.m. Pacific Standard Time on a business day, Saturday, Sunday or banking holiday will be posted on the next business day. SYSTEM identifies a transfer based upon the Login ID of the user who made the electronic transfer. Accordingly, you understand and acknowledge that the View Postings screens in both the Transfer and Bill Payer menu options of SYSTEM will not reflect transfers made by multiple users from the same account if different Login IDs are used. You agree to communicate to any other persons with authorized access to your accounts concerning any transfers or bill payments from your accounts, in order to avoid overdrafts.

Overdrafts Order of Payments, Transfers and other Withdrawals - If your account has insufficient funds to perform all electronic fund transfers you have requested for a given business day, then: a Electronic fund transfers involving currency disbursements, like ATM/POS withdrawals, will have priority; b Electronic fund transfers initiated through SYSTEM which would result in an overdraft of your account may, at our discretion, be cancelled and c In the event that electronic fund transfers initiated through SYSTEM which would result in an overdraft of your account are not canceled, overdraft charges may be assessed pursuant to the terms of the deposit agreement for that account.

Limits on Amounts and Frequency of SYSTEM Transactions - The number of transfers from BANK accounts and the amounts that may be transferred are limited pursuant to the terms of the applicable deposit agreement and disclosure for those accounts. If a hold has been placed upon deposits made to an account from which you wish to transfer funds, you cannot transfer the portion of the funds held until the hold expires.

SYSTEM Bill Payment Service - You must designate: the BANK checking account from which the payments are to be made; the complete name of the payee, the account number, and the payee's remittance address, all exactly as shown on the billing statement or invoice; the amount of the payment and 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 during the next business day. By using the SYSTEM Bill Payment Service option, you agree that, based upon instructions received under your password, we can charge your designated account by electronic transfer, "no signature required draft" or by debiting and remitting funds on your behalf. You also agree that your first SYSTEM bill payment fee will be charged to your Primary Checking Account. We reserve the right to refuse payment to any payee designated by you. If we do so, we will notify you promptly.

Scheduling SYSTEM Payments - If the payee is to be paid by paper check as indicated on the Bill Payer list , you understand and agree that paper checks are mailed to the payee and the payee may not receive the payment until 5 to 8 business days after the date the payment is debited from your account. If the payee is to be paid electronically as indicated on the Bill Payer list , you understand and agree that the payee may not receive the payment until 3 days after the date the payment is debited from your account. You understand and agree that we are not responsible for the timely delivery of mail or the improper transmission or handling of payments by a third party, such as the failure of the bill payment payee to properly post a payment to your account.

How to Cancel a Bill Payment - To cancel a bill payment scheduled through SYSTEM, you must cancel the payment online via SYSTEM by following the onscreen instructions before 3:00 p.m. Pacific Standard Time on the date the payment is scheduled to be debited from your account. Once an electronic bill payment has been debited from your account, you CANNOT cancel or stop it. You may be able to stop a SYSTEM bill payment paid by paper draft by contacting us via telephone before the paper draft has cleared. You will have to contact us by telephone to determine if the paper draft has cleared. If the paper draft has not cleared, we will process your stop payment request in a timely manner. We will notify you immediately if the paper draft has already cleared. To be effective, this type of stop payment request must precisely identify the name of the payee, the payee-assigned account number, the amount and scheduled date of the payment and the ID number from the Bill Payment View Posting Screen.

STOP PAYMENTS

You may only initiate stop payment requests online via SYSTEM for paper checks you have written non-electronically on your BANK accounts not SYSTEM bill payer paper drafts. Online stop payment requests are processed in a timely manner on the business day following the date the stop payment has been requested online. To be effective, this type of stop payment request must precisely identify the name of the payee, the check number, the amount and the date of the check. If you make your stop payment request online or by telephone, we will also require you to put your request in the form of a paper writing and get it to us within 14 days after you call. You will incur stop payment charges as disclosed in the current fee schedule for the applicable account. Stop payment charges for SYSTEM bill payment paper drafts will be assessed.

DISCLOSURE OF INFORMATION TO PARTIES OUTSIDE OF MBank

MBank recognizes and respects your expectations of privacy. We will take the necessary steps to insure that information you share with us remains confidential. All MBank employees recognize the privacy concerns of customers and practice sensible "Privacy safeguards" in their everyday activities. We do not reveal information about our customers, or their accounts, to parties outside the Bank for their independent use unless: 1 to help complete a customer-initiated transaction, 2 to help administer the institution's bona fide business, 3 at the customer's request, 4 the disclosure of information is required, by law i.e., subpoena , 5 to a reputable information reporting agency i.e., credit bureau .

Periodic Statements - You will not receive a separate SYSTEM statement. Transfers to and from your accounts using SYSTEM will appear on the respective periodic paper statements for your BANK accounts.

Change in Terms - We may change any term of this Agreement at any time. If the change would result in increased fees for any SYSTEM 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 BANK SYSTEM website or forward it to you by email or by postal mail. 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 subject SYSTEM 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.

Electronic Fund Transfers - Your Rights and Responsibilities

The Electronic Fund Transfer Disclosure does not apply to any accounts other than consumer accounts, as defined by Regulation E.

Indicated below are types of Electronic Fund Transfers we are capable of handling, some of which may not apply to your account. Please read this disclosure carefully because it tells you your rights and obligations for the transactions listed. You should keep this notice for future reference.

Preauthorized Credits. You may make arrangements for certain direct deposits to be accepted into your checking or savings account(s).

Preauthorized Payments. You may make arrangements to pay certain recurring bills from your checking or savings account(s).

Internet Banking - types of transfers, dollar limitations, and charges

You may make arrangements for certain direct deposits to be accepted into your checking or savings account(s)

Transfer funds from savings to checking accounts(s)

Transfer funds from checking to savings account(s)

Transfer funds from checking account(s) to loan

Transfer funds from savings account(s) to loan

Get Information about: Your checking, savings, CD, and loan account(s).

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