INTERNET BANKING APPLICATION

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Please list the account numbers you would like to access through our Internet Banking product.

By signing below, you are applying for Internet Banking Services. I agree that sufficient funds must be available in my account on the date I schedule payments or transfers that are to be made using the Internet Banking Service. I authorize you to charge my account for any transactions made through the use of the Internet Banking Service, including the amount of any recurring payment or transfer that I make.

I acknowledge receipt of the Internet Banking Agreement, that I understand the terms and conditions set forth therein and agree to be bound by them.

__________________________________________ ________________________

Signature Date

Received by:_____ Date Processed:_______ Processor:________

INTERNET BANKING INSTRUCTIONS

Wait until the padlock disappears and enter your CIF# (Customer Number) and enter. A keyboard will appear on which you click on the temporary PIN (9682310). This will prompt you to change your PIN. It is case sensitive and must be 6-15 characters either numeric, alphabetical or combination of both.

If you try to access the website three (3) times with an incorrect PIN you will be disabled and must call the bank to be reset.

To register for Online Bill Pay sign on to Internet Banking. When you get to the page that shows your account information click on the Online Services and you will see a link that says Bill Pay. Click on this to register. If this does not open, make sure your pop-up blocker is off (allow pop-ups to this site). If you have any problems, please call the bank.

This Agreement for Internet Banking is by and between Security State Bank (hereinafter referred to as the "Bank") and the account holder (hereinafter referred to as "you" or "your").

In accordance with your decision to utilize the Bank's Internet Banking product, the Bank hereby grants you an exclusive nontransferable sublicense of Internet Banking software. You agree and understand that upon your written acceptance of this Agreement and the completion of the Customer Information Sheet, the Bank will provide you with access to Internet Banking. Internet Banking is not a product belonging to the Bank but is, instead, a third party service which has been made available to the customers of Security State Bank if they elect to accept such service.

Such service will provide you with information and data relative to your bank statements and your accounts at the Bank and, should you elect, such program may also permit you to initiate certain transfers in and from your accounts. The Bank has no proprietary control over the software and, therefore, cannot and will not guarantee its performance or suitability.

You may utilize Internet Banking to obtain information concerning the status of your accounts at the Bank, seven (7) days a week, twenty-four (24) hours a day.

You agree to keep your password strictly confidential. If you authorize or permit another person to use the Service or attain your password, you are responsible for payments, transfers, or advances that person makes from the deposit and credit accounts linked to your service registration. If your password becomes known to any unauthorized person, or if you believe that it may have become known to an unauthorized person, you will immediately provide telephone notice thereof to the Bank, followed by written notice to be sent the same day. The Bank reserves the right to change your password at any time, effective upon notice to you.

The Bank will exercise reasonable care in entering into your accounts the information you place into Internet Banking. The Bank shall not be liable or responsible for information which is inaccurate, incomplete, not current, or lost in transmission. It is understood that the Bank assumes no liability or responsibility for the accuracy, completeness or correctness of the data entered into Internet Banking.

The Bank will execute properly authorized transfer requests on the business date received provided such requests are received by the Bank prior to 3:00 p.m. By initiating any such transfer(s), you assume full responsibility for verifying the availability of collected funds at the time of the transfer request.

You understand that under Federal Reserve Board Regulation D, depositors are permitted to make no more than six transfers or withdrawals from a money market account per month (not counting transactions made at ATMs or at banking centers). Transfers made by telephone or personal computer are counted toward the six total permitted monthly transfers or withdrawals. If you transactions exceed the legal limit, we will charge you a fee for each such transaction in excess of the legal limit. If you exceed the restrictions more than three times during a 12- month period, we will change the money market account to a checking account. On Regular Savings accounts, we charge a fee for each withdrawal or transfer in excess of three. The amount of these fees as set forth in the Account Information Disclosure.

All individuals who are given use of your password to initiate any of the transactions described in paragraph 3 (hereinafter referred to, as "Electronic Entry (ies) shall be designated as "authorized representatives". You understand that an electronically transmitted name of an "authorized representative" is not subject to verification and the name of an authorized representative, you may be solely responsible for any actions taken by such unauthorized person. You acknowledge and agree that, notwithstanding the terms of any agreement to the contrary between you and the Bank, when you use Internet Banking to effect Electronic Entries, the Bank shall have no responsibility for verifying such Entries by telephone or otherwise prior to effecting the transactions. With respect to any Electronic Entry, the Bank is under no obligation to honor either partially or entirely, any transfer requests which exceeds the available funds in your account with the Bank, is not in accordance with any written agreement between you and the Bank; or is not in accordance with the security requirements set out herein. If the Bank in its sole discretion creates an overdraft to complete a transfer, you agree to repay the Bank upon demand, together with interest (at the Bank's then current per diem interest rate for such overdrafts), a processing fee and, if necessary, the costs of collection. However, the Bank is under no obligation to create an overdraft for any purpose. The Bank is not liable for failing or refusing to perform any transaction that would violate this or any other agreement with the Bank.

THE BANK HAS NOT MADE, AND DOES NOT BY THIS AGREEMENT MAKE, ANY REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING THOSE OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE, WITH RESPECT TO INTERNET BANKING, AND THE BANK HEREBY DISCLAIMS THE SAME. IN NO EVENT SHALL THE BANK OR ITS DIRECTORS, EMPLOYEES, OR AGENTS BE LIABLE FOR ANY INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY, OR CONSEQUENTIAL LOSSES OR DAMAGES INCLUDING WITHOUT LIMITATION, LOSS OF USE, LOSS OF PROFITS, OR CLAIMS OF THIRD PARTIES, WHETHER OR NOT THE POSSIBILITY OF SUCH LOSSES OR DAMAGES WAS KNOWN BY THE BANK.

THE BANK AND ITS DIRECTORS, EMPLOYEES AND AGENTS ARE NOT AND SHALL NOT BE LIABLE FOR THE ACTS AND/OR OMISSIONS OF ANY THIRD PARTY, INCLUDING BUT NOT LIMITED TO THE VENDOR(S) OF INTERNET BANKING, AND ITS COMPONENTS, ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, INTERNET BANKING, OR YOUR USE THEREOF.

It is understood that the ability of the Bank to provide access to Internet Banking is conditioned upon the continued operation and availability of the computers which house Internet Banking. In the event that access by either you or the Bank to that computer/communications system is suspended or terminated for any reason, the Bank and its directors, employees and agents will have no responsibility to provide these services and, in such an event, the Bank may suspend or terminate this Agreement, without further responsibility or obligation.

The Bank shall take reasonable precautions to insure that the customer information put into Internet Banking will remain confidential and protected from unauthorized access by third parties. It shall be conclusively presumed that the Bank has satisfied the foregoing obligations if the Bank has adhered to its regular security procedures and made contracts with reputable third parties who have made comparable representations to the bank. Similarly, there shall be a presumption that the third-parties engaged by the Bank shall have satisfied their obligations to maintain confidentiality of customer's information input into Internet Banking if such parties have adhered to their regular security procedures. Notwithstanding the Bank's commitment to take reasonable precautions, you specifically agree that the Bank shall not be liable to or responsible for any breach of confidentiality through the use of Internet Banking except as such breach results solely form the Bank's gross negligence or willful misconduct.

Upon accessing Internet Banking, the Bank shall exercise ordinary care to follow the instructions it receives from you through Internet Banking, unless the Bank has received written notice to change your password. The Bank is not liable to you for any act or failure to act, unless such actor failure to act is grossly negligent or reckless. The Bank is not liable or responsible to you for: (a) delays caused by any internal computer, failure, or other problems, or computer problems with any third-party; (b) the furnishing of data or information, makes, errors, or omissions of any kind relating to inquiries, instructions, messages or transactions, originating from Internet Banking which are not caused by the Bank's gross negligence or willful misconduct; (c) use by other persons authorized by you for Internet Banking to effect or to attempt to effect transitions in your accounts and to gain information as to your accounts; (d) loss or damage caused to you by use of Internet Banking; (e) your failure to use Internet Banking in accordance with instructions; and any act of God, natural disaster or other cause outside the control of the Bank.

If you suffer any loss of interest resulting from the Bank's error in executing or failing to execute a transfer in accordance with this Agreement, the Bank will reimburse you for the loss of such interest as stated herein for a period not exceeding fourteen (14) days following your receipt of the confirmation advise or periodic account statement (whichever occurs first). Such interest shall not exceed the Federal Funds Rate (net of required reserve) in effect at the Federal Reserve Bank of Dallas for the period involved.

Liability for Unauthorized Use: You will tell us immediately if you believe your PIN or password has become known to an unauthorized person or if an unauthorized transaction has occurred involving your account. Telephoning is the best way of keeping your possible losses to a minimum. If you suggest that an unauthorized transfer or payment may have occurred, we may require you to sign an affidavit.

If you tell us within two banking days after you learn of the loss or theft, you can lose no more than $50.00 if an unauthorized person used your PIN or password without your permission to process a transaction. If you do NOT tell us within two banking days after you learned that your PIN or password has become known by an unauthorized person, and we can prove that we could have stopped someone from using your PIN or password without your permission if you had told us, you could be liable for as much as $500.00.

Also, if your statement shows electronic funds transfers that you did not make, you will tell us at once. We may require you to provide your complaint in the form of an affidavit. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 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 may extend the time periods.

Address and Telephone Number for Notifications of Unauthorized Use: The Bank strongly recommends that you not use electronic mail to notify us of any stop payment requests you wish to make on personal checks. To ensure expedient handling, stop payment requests on personal checks should be made by calling the Bank. If you believe your PIN or password has become known by an unauthorized person, or that someone has transferred money or made payments without your permission, you will call Security State Bank at (903) 903-2310, or write to:

Security State Bank, PO Box 70, Ore City, Texas 75683.

You hereby agree to defend, indemnify, and hold harmless the Bank and its directors, employees, and agents, firm and against any and all claims, actions and suits, whether groundless or otherwise, and from and against any and all liabilities, losses, damages, costs, charges, attorney's fees, and other expenses of every nature, directly or indirectly resulting from, due to or relating to, or arising by reason of, use(including unauthorized use), or misuse, or loss caused by the use of Internet Banking and including, without limitation, any such arising directly or indirectly out of, or in any way connected with this agreement.