This Agreement describes your rights and obligations as a user of the Online Banking service or the Bill Payment service ("Services"). It also describes the rights and obligations of Four Oaks Bank & Trust Company. Please read this Agreement carefully. By requesting and using one of these Services, you agree to comply with the terms and conditions of this Agreement.

Definitions

The following definitions apply in this Agreement. "Online Banking" is the Internet-based service providing access to your Four Oaks Bank & Trust Company account(s); "Online Account" means any Four Oaks Bank & Trust Company account from which you will be conducting transactions using a Service; and "Password" is the system-generated code sent to you by Four Oaks Bank & Trust Company for use during the initial sign-on, or the codes you select after the initial sign- on, that establishes your connection to the Service. "Time of day" references are to Eastern Standard Time or Eastern Daylight Time, as applicable. "We," "us" or "the bank" refer to Four Oaks Bank & Trust Company which offers the Services and which holds the accounts accessed by the Services.

The bank will provide instructions on how to use the Online Banking or Bill Payment service. You will gain access to your Online Accounts through the use of your Internet-enabled device, your Internet Service Provider, your Passcode and your Social Security number.

You agree not to allow anyone to gain access to the Services or to let anyone know your Passcode used with the Services. You agree to assume responsibility for all transactions up to the limits allowed by applicable law.

If your Passcode has been lost or stolen, call the bank immediately at 919-963-2177 8:30 am to 5:00 pm, Monday through Friday. Telephoning the bank is the best way of minimizing your losses. If you believe your Passcode has been lost or stolen and you tell us within two business days after you learn of the loss or theft, you can lose no more than $50 if someone uses your Passcode without your permission. If you do NOT tell us within two business days after you learn of the loss or theft of your Passcode, and we can prove we could have stopped someone from using your Passcode without your permission if you had told us, you could lose as much as $500.

If your statement shows transfers that you did not make, notify us immediately by calling 919-963-2177, 8:30 am to 5:00 pm, Monday through Friday or by writing to the following address:

Four Oaks Bank & Trust Company

ATTN: Electronic Banking

PO Box 309

Four Oaks, NC 27524

If you do not notify the bank within 60 days after the statement was mailed to you, you may not recover any money lost after the 60 days which would not have been lost if we had been notified in time. If a good reason (such as a long trip or hospital stay) delayed you from contacting us, we will extend the time periods.

In addition to viewing account information, you may use Online Banking to conduct the following transactions:

(1) Transfer funds among your checking accounts, savings accounts and money market accounts. NOTE: Because regulations require the bank to limit preauthorized transfers (including Online Banking transfers), the following limitations apply:

(a) Statement savings account. You can make no more than six withdrawals per quarter.

(b) Money Market savings account. You can make no more than six transfers per statement period by preauthorized or automatic transfer or by telephone or Online Banking and no more than three of these may be by check, draft or debit card.

(2) New services may be introduced for Online Banking from time to time. We 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 which will be made available to you concerning these services.

The Bill Payment 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 checking account. Through the Bill Payment service, you can pay bills from your Bill Pay Account to businesses or individuals.

All payments you make will be deducted from the account that you designate as your Bill Pay Account for the Bill Payment service. Any payments you wish to make through this service must be payable in U.S. dollars to a payee located in the continental United States. We reserve the right to restrict types of payees to whom payments may be made using the Service from time to time. You should not use the Bill Payment service to make payments to settle securities purchases, payments to interest bearing accounts, tax payments, or court ordered payments. Payments for these payees will be your sole responsibility if delayed or improperly processed or credited.

Funds must be available in your Bill Pay Account on the scheduled payment date. If the date you schedule a payment to be initiated falls on a non-business day (Saturday, Sunday or holiday), funds must be available in your Bill Pay Account the following business day (e.g., Monday). After funds are withdrawn from your Bill Pay Account to make a payment, we may make the payment either by transferring funds electronically to the payee or by mailing the payee a check.

You may choose to schedule payments to recur in the same amount weekly, monthly or semi-monthly.  For all  payments, you agree to allow at least four (4) business days between the date you schedule a payment to be initiated and the payment due date (that is, the due date shown on your invoice or provided in your agreement with the payee, not taking into account any applicable grace period). If you do not, you will be fully responsible for all late fees, finance charges or other action taken by the payee. If you schedule your payment and follow all instructions provided, but the payment is not received by the payee in a timely manner, we will work with the payee on your behalf to attempt to have any late fees or charges reversed.

The bank is only responsible for exercising ordinary care in processing and sending payments upon your authorization in accordance with this Agreement. We will not be liable in any way for damages you incur if you do not have sufficient funds in your Bill Pay Account to make the payment on the processing date, for delays in mail delivery, for changes to the payee's address or account number unless you have advised us of the change sufficiently in advance, for the failure of any payee to correctly account for or credit the payment in a timely manner, or for any other circumstances beyond the control of the bank.

If the session during which you schedule a payment or transfer ends by 1:00 pm, it will be considered to have been received on that day. Otherwise, it will be considered received on the following business day. For all entries made using the service, the time recorded by the Online Banking service controls.

If your Bill Pay Account does not have sufficient funds to make a payment as of the date the transfer or payment is attempted or scheduled to be made, the transfer or payment will be canceled and no further attempt will be made by the bank to make the transfer or payment. We will attempt to notify you by e-mail or U.S. Postal Mail, but we shall have no obligation or liability if we do not complete a transfer or payment because there are insufficient funds in your account to process a transaction. In all cases, you are responsible for either making alternate arrangements for the payment or rescheduling the payment through the Service. In the case of fixed payments, only the payment currently scheduled will be canceled. Fixed payments scheduled for future dates will not be affected.

The way to cancel or change a payment is to use the Service. Payments must be changed or canceled using the Service prior to 2:00 pm on the business day the transaction is scheduled to be initiated. If you ask us to cancel a payment after it is issued and we agree to do so, we may charge you a stop payment fee. Stop payment orders, whether oral, written, or electronic, will be in effect for a period of six months. All stop payment orders must be confirmed in writing within 14 days. After six months, any stop payment will terminate and must be renewed in order to continue in effect. The bank may pay any item that is presented following the lapse of any stop payment order.

If you send the bank an electronic mail message, we will deem to have received it on the following business day. The bank will have a reasonable time to act on your e-mail.

You should not rely on electronic mail if you need to communicate with us immediately - for example, 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.

You agree that the bank may respond to you by electronic mail with regard to any matter related to the Service, including responding to any claim of unauthorized electronic funds transfer that you make. Any such electronic mail sent to you by the bank shall be considered received within three (3) days of the date sent by the bank, regardless of whether or not you sign on to the Service within that time frame.

In addition to this Agreement, you and the bank agree to be bound by and comply with the requirements of the agreements applicable to each of your Online Accounts. Your use of the Online Banking service or the Bill Payment service is your acknowledgment that you have received these agreements and intend to be bound by them. You should review other disclosures received by you when you open your accounts at the bank including the charges that may be imposed for electronic funds transfers or the right to make transfers listed in the fee schedules accompanying those disclosures and the fee schedule at the end of this Agreement. We will automatically deduct the fees related to this Service from your Bill Pay Account each month.

The Services are available 24 hours a day, seven days a week, except during special maintenance periods. For purposes of transactions, the bank's business days are Monday through Friday, excluding holidays. All Online Banking transaction requests received after 2:00 pm (1:00 pm for Bill Payment) on business days and all transactions which are requested on Saturdays, Sundays or holidays on which we choose to remain closed, will be processed on the bank's next business day. The bank's business day begins at 9:00 am.

The bank may modify the terms and conditions applicable to either Service from time to time upon mailing or delivering a notice of the modifications to you at the address shown on our account records and the revised terms and conditions shall be effective at the earliest date allowed by applicable law. We may send any notice to you via electronic mail and it will be deemed to have been received three days after it is sent. We reserve the right to terminate this Agreement and your use of the Services in whole or in part at any time without prior notice.

In case of errors or questions regarding an Online Banking or Bill Payment transaction, call us at 919-963-2177 or write us at the following address:

Four Oaks Bank & Trust Company

ATTN: Electronic Banking

PO Box 309

Four Oaks, NC 27524

We must hear from you at the specified telephone number or address no later than 60 days after we sent you the FIRST statement on which the problem or error appeared. We will need:

1. Your name and account number (if any)

2. A description of the error or the transfer in question and an explanation concerning why you believe it is an error or need more information

3. The dollar amount of the suspected error and date on which it occurred.

If the report is made orally, we may require that you send the complaint or question in writing within 10 business days. We will notify you with the results of the investigation within 10 business days and will correct any error promptly. If more time is needed, however, we may take up to 45 days to investigate a complaint or question. If this occurs, we will credit your account within 10 business days for the amount you think is in error. This will allow you to use the money during the time it takes us to complete our investigation. If your complaint or question is not received in writing within 10 business days, we may not credit your account until the investigation is completed.

If an alleged error involves an electronic fund transfer outside a state or territory or possession of the United States, the applicable time periods for action by us are 20 business days (instead of 10) and 90 calendar days (instead of 45).

If we determine that no error occurred, we will send you a written explanation within three business days after the investigation is complete. You may request copies of the documents that were used in the investigation.

You agree that the bank may respond to you by electronic mail with regard to any claim of unauthorized electronic fund transfer related to the Service. Any such electronic mail sent to you by the bank shall be considered received within three (3) days of the date sent by the bank, regardless of whether or not you sign on to the Service within that time frame.

You will continue to receive your regular account statement either monthly or quarterly, depending on the type of account.

If we do not properly 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 the amount of any losses or damages incurred by you and resulting directly from such failure. We will not be liable in the following instances:

(1) If through no fault of the bank, you do not have enough money in your account to make the transfer.

(2) If circumstances beyond our control (such as fire, flood, power outage, equipment or technical failure or breakdown) prevents the transfer, despite reasonable precautions that we have taken.

(3) If there is a hold on your account, or if access to your account is blocked, in accordance with banking policy.

(4) If your funds are subject to legal process or other encumbrance restricting the transfer.

(5) If your transfer authorization terminates by operation of law.

(6) If you believe someone has accessed your accounts without your permission and you fail to notify us immediately.

(7) If you have not properly followed the scheduling instructions on how to make a transfer included in this Agreement.

(8) If we have received incomplete or inaccurate information from you or a third party involving the account or transfer.

(9) If we have a reasonable basis for believing that unauthorized use of your Password or account has occurred or may be occurring or if you default under this Agreement, the deposit account agreement, a credit agreement or any other agreement with us, or if we or you terminate this Agreement.

There may be other exceptions stated in this agreement and in other agreements with you. In no event shall we be liable for damages in excess of your actual loss due to our failure to complete a transfer, and we will not be liable for any incidental or consequential damages.

If any of the circumstances listed in subparagraph 2 or 8 above shall occur, we shall assist you with reasonable efforts in taking appropriate corrective action to reprocess the transactions that may not have been completed or to correct incorrect transactions that have been processed.

We will disclose information to third parties about your account or the transfers you make:

(1) where it is necessary for completing transfers. Or,

(2) in order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant. Or,

(3) in order to comply with government or court orders, or other reporting requirements. Or,

(4) if you give us your written permission. Or,

(5) to bank affiliated companies.

Information concerning your account history with the bank will be shared within the bank organization. Other information, including information you have given us as part of an application for one of our products or services, or information we have received from a credit bureau or other third party, also may be shared among affiliated companies within the bank organization. You may direct that information other than your bank account history not be shared with bank affiliates by e-mailing us using the "Contact Us" link in Online Banking or calling us at 919-963-2177 8:30 am to 5:00 pm, Monday through Friday.

You are responsible for complying with all the terms of this Agreement and with the terms of the agreement governing the deposit accounts which you access using electronic banking services. We can terminate your electronic banking privileges (including the Bill Payment service) under this Agreement without notice to you if you do not pay any fee required by this Agreement when due or if you do not comply with the agreement governing your deposit or loan accounts or your accounts are not maintained in good standing. We will promptly notify you if we terminate this Agreement or your use of the services for any other reason.

If you are not paying a monthly service charge for the Service, we may convert your account to inactive status if you do not sign on to the Service or have any transaction scheduled through the Service during any consecutive 90 day period. If your account is considered inactive, you must contact us to have the Service activated before you will be able to schedule any transaction through the Service.

To cancel the Online Banking and/or Bill Payment service, you must notify the bank and provide your name; address; whether you are discontinuing Online Banking, Bill Payment or both; and the effective date to stop the service. When Bill Payment is terminated, any prescheduled bill payments made through Online Banking will also be terminated. Your final charge for the Bill Payment service will be assessed at the end of your statement cycle. You may notify us by one of the following methods:

1) By sending an e-mail using the "Contact Us" link in Online Banking.

2) By calling us at 919-963-2177, 8:30 am to 5:00 pm, Monday through Friday.

3) By writing a letter and either sending it to the following address or giving it to a Customer Service Representative at any branch location:

Four Oaks Bank & Trust Company

ATTN: Electronic Banking

PO Box 309

Four Oaks, NC 27524

This Agreement is governed by the laws of the State of North Carolina and applicable federal law.

Four Oaks Bank offers the benefits and convenience of the Online Banking and Bill Payment services to consumer and business customers at no charge.