Online Access Agreement and Electronic Fund Transfer Act Disclosure

This agreement is a contract that establishes the rules that cover electronic access to your accounts at First National Bank of Fredericksburg through Online Banking.

By using Online Banking, you accept all the terms and conditions of this Agreement. Please read it carefully.

The terms and conditions of the deposit agreements and disclosures for each of your First National Bank of Fredericksburg's accounts as well as your other agreements 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 Pennsylvania. If any provision of this Agreement is found 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 (expressed 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 First National Bank of Fredericksburg's successors and assigns. Certain of the obligations of the parties pursuant to this Agreement by their nature, would continue beyond the termination, cancellation or expiration of this Agreement.

Definitions: As used in this Agreement, the words "we," "our," "us," and "Bank" mean First National Bank of Fredericksburg. "You" and "Your" refer to the account holder authorized by Bank to use Online Banking under this Agreement and anyone else authorized by that account holder to exercise control over the account holder's funds through Online Banking. "Account" or "accounts" means your accounts at Bank. "Electronic funds transfers" means ATM withdrawals, pre-authorized transactions, point of sale transactions, transfers to and from your Bank accounts using Online Banking including bill payments. "Online Banking services" means the services provided pursuant to this Agreement, including the bill payment service. "Business Days" means Monday thru Friday. Holidays are not included.

Access: To use Online Banking, you must have at least one account with Bank, and access to Internet service. Access to your accounts through Online Banking will be based upon the identification of users and authority levels maintained at the Bank. We undertake no obligation to monitor transactions through Online Banking to determine that they are made on behalf of the account holder.

Online Banking Services: You can use Online Banking to check the balance of your Bank accounts, transfer funds between your accounts, make stop payment requests, pay bills from your account in the amounts and on the dates you request.

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.

Your Password: For security purposes, you are required to change your password upon your initial first time login to Online Banking. The password, a minimum of 6 digits, maximum of 17 digits, is determined by the account holder and is not communicated to the Bank. 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. After three unsuccessful login attempts, the system locks the user out, requiring either a designated wait period or a phone call to the Bank to reset the password before reentry into the system. You may also click on “Forgot Your Password?” to have your password re-set, in which case you will receive an e-mail with your new temporary password.
We recommend that you create a unique access ID that utilizes both upper and lowercase 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.

Guidelines for Safe Online Banking Transactions: Online security begins with the authentication process, which generally involves one or more basic factors: Something the user knows (i.e., password, PIN); something the user has (i.e., ATM card, smart card, multi factor PassMark and PassPhrase on registered computers); something the user is (i.e., a fingerprint). FNB uses multi-factor authentication for online banking purposes.

FNB would not contact customers on an unsolicited basis and request your online banking credentials. Should you ever be contacted (via telephone, e-mail, etc.) by someone claiming to be an employee of FNB, DO NOT provide any such information. Instead, please contact FNB immediately. If you notice suspicious account activity or information security related events, please contact FNB immediately. Contact information is included at the end of this Disclosure.

Following is a list of Controls that may be implemented to help detect and prevent attacks:
Anti-malware software may provide a defense against “keyloggers” and “man-in-the-middle” or “man-in-the browser” attacks. Anti-malware software is used to prevent, detect, block, and remove adware, spyware, and other forms of malware such as “keyloggers”. It is important to note that anti-malware is generally signature based, and some advanced versions of malware continuously alter their signature.

Security: 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 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. Your password and access 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. Once the server session is established, the user and the server are in a secured environment. The server has been certified as a 128-bit encrypted with Secure Sockets Layer (SSL) protocol. With SSL, data that travels between the bank and customer is encrypted and can only be decrypted with the public and private key pair. Requests must filter through a router and firewall before they are permitted to reach the server. A router, a piece of hardware, works in conjunction with the firewall to block and direct traffic coming to the server. Notwithstanding our efforts to insure that Online Banking is secure, you acknowledge that the Internet is inherently insecure and that all data transfers, including electronic mail, occur openly on the Internet and potentially can be read by others. FNB is not responsible for any electronic virus or viruses that you may encounter. We suggest that you routinely scan your PC using a virus protection product. An undetermined virus may corrupt and destroy your programs, files and your hardware.

Transfers: Transfers initiated through Online Banking before 5:00 PM (Eastern Standard Time) on a business day are posted to your account the same day. Transfers completed after 5:00 PM (Eastern Standard Time) on a business day will be posted on the next business day. Transfers completed anytime during Saturday, Sunday or banking holiday will be posted on the next business day. Online Banking identifies transfers based upon the login ID of the user who made the electronic transfer. You agree to communicate with any other persons with authorized access to your accounts concerning any transfers from your accounts in order to avoid overdrafts. Because regulations require First National Bank of Fredericksburg to limit preauthorized transfers (including Online Banking transfers), the following limitations apply: For a Savings Account you are not permitted to make more than six (6) transfers per statement cycle by preauthorized, automatic transfer, by telephone or Online Banking. If you are a Money Market Account holder you may not make more than six (6) transfers per statement cycle by preauthorized, automatic transfer, telephone transfer, Online Banking, check, draft, debit card or similar order to a third party. Please note: If there are not sufficient funds in the account, we cannot complete this transfer. However, future recurring transfers will not be impacted.

Overdrafts: If your account has insufficient funds to perform all electronic fund transfers you have requested for a given business day, then:
a. Electronic funds transfers involving current disbursements, like ATM withdrawals, will have priority;
b. Electronic fund transfers initiated through Online Banking which would result in an overdraft of your account may, at our discretion, be canceled;
c. In the event electronic fund transfers initiated through Online Banking 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.
If a hold has been placed on 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.

Online Banking Bill Payment Service:. To use Bill Payment Service, you must agree to separate Terms and Conditions for 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 the next business day. By using Online Banking bill payment service option, you agree that, based upon instructions received under your password, we can charge your designated account by transfer, "no signature required draft," or by debiting and remitting funds on your behalf. We reserve the right to refuse to pay any payee designated by you. If we do so, we will notify you promptly.

Stop Payment Requests: To be effective, a stop-payment request must precisely identify the name of the payee, amount, check number, and date of the payment. You will incur stop payment charges as disclosed in the current fee schedule for applicable amount. A stop payment entered online before 5:00 p.m. will be placed on the item the following business day. If you need a stop payment placed on the item effective immediately, please call or visit one of our branch offices.

Stopping the payment of a check is different from the cancellation of a bill payment. Please see separate Terms and Conditions for Bill Payment Service for bill payment stop payment request information. The Service’s ability to process a stop payment request will depend on the payment method and whether or not a check has cleared. The Service may also not have a reasonable opportunity to act on any stop payment request after a payment has been processed. If you desire to stop any payment that has already been processed, you must contact Customer Service at (800) 877-8021. Although the Service will make every effort to accommodate your request, the Service will have no liability for failing to do so. The Service may also require you to present your request in writing within fourteen (14) days. The fee for each stop payment request will be the charge on the current fee schedule.

Periodic Statements: You will not receive a separate Online Banking statement. Transfers to and from your accounts using Online Banking will appear on the respective paper statements or e-statement for your bank accounts.

Change of 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 Bank web site or forward it to you by email or by postal mail. If advanced 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. You acknowledge and agree that changes to fees applicable to specific accounts are governed by the applicable deposit agreements and disclosures.

Your Protections Under Regulation E (Electronic Funds Transfer Act): The protections afforded by Regulation E apply to consumer accounts. They do not apply to business accounts.

In Case of Errors or Questions about Your Electronic Transfers: Contact us as soon as you can, if you think your paper statement or e-statement is wrong, or if you need more information about a transfer listed on your paper statement or e-statement. We must hear from you no later than 60 days after we sent the FIRST paper statement or e-statement upon which the problem or error appeared. When you contact us:
1. Tell us your name and account number.
2. 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.
3. Tell us the dollar amount of the suspected error.
4. If the suspected error relates to a bill payment, see Terms & Conditions for Bill Payment Service. You will need to tell us the account number used to pay the bill, payee name, the date the payment was made and payment amount.

If you contact us by telephone or by email, we may require that you send us your complaint or question in the form of a paper writing 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 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.

ERROR RESOLUTION PROCEDURES - IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR ELECTRONIC TRANSFERS Telephone us at (717) 865-2123 or write to us at: First National Bank of Fredericksburg 3016 S. Pine Grove Street, Fredericksburg, PA 17026

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:
1. If through no fault of ours, you do not have enough money in your account to make a transfer
2. If a legal order directs us to prohibit withdrawals from the account
3. If your account is closed, or if it is to be frozen
4. 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
5. If you, or anyone authorized by you, commits any fraud or violates any law or regulation
6. If any electronic terminal, telecommunication device, or any part of Online Banking electronic fund transfer system is not working properly and you knew about the problem when you started the transfer
7. If you have not properly followed the on-screen instructions for using Online Banking
8. 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 may have taken
9. If you have not provided us with complete and correct payment information for the Bill Payment Service, including without limitation, the name, address, your payee-assigned account number, payment date and payment amount for the payee on a bill payment

Unauthorized Transfers: Contact us AT ONCE if you believe that your Online Banking PIN has been lost or stolen or you think that someone has transferred or may transfer money from your account without your permission. You can report a problem by calling us at 1-800-809-7949 or by writing us at 3016 S. Pine Grove Street, Fredericksburg, Pennsylvania 17026, Attention: Online Banking Department. However, telephoning is the best way of keeping your possible losses to a minimum. If you telephone us to report a problem, we also require you to put your claim in writing to us within ten (10) business days. The loss, theft, or unauthorized use of your LOGIN and PIN could cause you to lose all the money in your account (plus the money in any account linked for the purpose of overdraft protection). However, if you tell us within two (2) business days after you learn of the loss, theft, or unauthorized transaction, you can lose no more than $50 if someone used your Online Banking LOGIN and PIN to make a transaction without your permission. If you do NOT tell us within two (2) business days after you learn of the loss, theft, or unauthorized use of your Online Banking LOGIN and PIN, and we can prove we could have stopped someone from using your Online Banking LOGIN and PIN without your permission if you had told us, you could lose as much as $500.

Also, if your statement shows a transfer(s) which you did not make, tell us at once. If you do not contact us within sixty (60) days after the statement was mailed to you, you may not get back any money lost after the 60th day, 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 notifying us, we will extend the time periods to a reasonable time.

BILL PAYMENT ERROR RESOLUTION PROCEDURES - IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR BILL PAYMENT ELECTRONIC TRANSFERS Telephone us at (800) 877-8021 or write to us at: First National Bank of Fredericksburg 3016 S. Pine Grove Street, Fredericksburg, PA 17026. See separate Terms and Conditions for Bill Payment Service.

Our Liability for Failure to Make a Bill Payment: The Service will use its best efforts to make all your payments properly. However, the Service shall incur no liability and any Service Guarantee shall be void if the Service is unable to complete any payments initiated by you because of the existence of any one or more of the following circumstances:

1. If, through no fault of the Service, your Payment Account does not contain sufficient funds to complete the transaction or the transaction would exceed the credit limit of your overdraft account;
2. The payment processing center is not working properly and you know or have been advised by the Service about the malfunction before you execute the transaction;
3. You have not provided the Service with the correct Payment Account information, or the correct name, address, phone number, or account information for the Biller; and/or,
4. Circumstances beyond control of the Service (such as, but not limited to, fire, flood, or interference from an outside force) prevent the proper execution of the transaction and the Service has taken reasonable precautions to avoid those circumstances.

Provided none of the foregoing exceptions are applicable, if the Service causes an incorrect amount of funds to be removed from your Payment Account or causes funds from your Payment Account to be directed to a Biller which does not comply with your Payment Instructions, the Service shall be responsible for returning the improperly transferred funds to your Payment Account, and for directing to the proper Biller any previously misdirected transactions, and, if applicable, for any late payment related charges.

Unauthorized Bill Payments: Contact us AT ONCE if you believe that your Online Banking PIN has been lost or stolen or you think that someone has transferred or may transfer money from your account without your permission. You can report a problem with bill payment by calling us at 1-800-877-8021 or by writing us at 3016 S. Pine Grove Street, Fredericksburg, Pennsylvania 17026, Attention: Online Banking Department. However, telephoning is the best way of keeping your possible losses to a minimum. If you telephone us to report a problem, we also require you to put your claim in writing to us within ten (10) business days. The loss, theft, or unauthorized use of your LOGIN and PIN could cause you to lose all the money in your account (plus the money in any account linked for the purpose of overdraft protection). However, if you tell us within two (2) business days after you learn of the loss, theft, or unauthorized transaction, you can lose no more than $50 if someone used your Online Banking LOGIN and PIN to make a transaction without your permission. If you do NOT tell us within two (2) business days after you learn of the loss, theft, or unauthorized use of your Online Banking LOGIN and PIN, and we can prove we could have stopped someone from using your Online Banking LOGIN and PIN without your permission if you had told us, you could lose as much as $500.

Also, if your statement shows a transfer(s) which you did not make, tell us at once. If you do not contact us within sixty (60) days after the statement was mailed to you, you may not get back any money lost after the 60th day, 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 notifying us, we may extend the time period.

Disclaimer of Warranty and Limitation of Liability: We make no warranty of any kind, expressed 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 First National Bank of Fredericksburg exceed the amount paid by you for the services provided to you through Online Banking.

You are responsible for obtaining, installing, maintaining and operation of all computer hardware and software necessary for Online Banking and Bill Pay. The Bank will not be responsible for any errors or failures from the malfunction or failure of your hardware or software.

Security: You have read our security statement and acknowledge that the electronic security measures used in your Online Banking transactions are reasonable and acceptable.

Our Right to Terminate: You agree that we can terminate or limit your access to Online Banking for any of the following reasons:
1. Without prior notice, if you have insufficient funds in any one of your Bank accounts. Online Banking service may be reinstated, at our sole discretion, once sufficient funds are available to cover any fees, pending transfers, and debits.
2. Upon 3 business days notice, if you do not contact us to designate a new Primary Checking Account immediately after you close your checking account.
3. Upon reasonable notice, for any other reason at our sole discretion.

Electronic messages from you to us, or from us to you, will be treated as written documents for any purpose a written document is needed. However, we can require written confirmation of messages or instructions if we choose, and may delay any executing transactions until we receive confirmation acceptable to us. We might do this, for example, if we think it will help protect you or us from fraud or a loss, but we can do so in other circumstances. Please Note: This is not a secure e-mail form. Please do not include account information or items of a confidential nature.

Communication between First National Bank of Fredericksburg and You: Unless the Agreement provides otherwise, you can communicate with us in any one of the following ways:

Email: wdorsey@fnbankonline.com

Telephone: (717)865-2123 OR 1-800-809-7949

Facsimile: (717)865-7783

Postal: First National Bank of Fredericksburg, 3016 S. Pine Grove Street, Fredericksburg, PA, 17026

Online Access Agreement and Electronic Fund Transfer Act Disclosure

This agreement is a contract that establishes the rules that cover electronic access to your accounts at First National Bank of Fredericksburg through Online Banking.

By using Online Banking, you accept all the terms and conditions of this Agreement. Please read it carefully.

The terms and conditions of the deposit agreements and disclosures for each of your First National Bank of Fredericksburg's accounts as well as your other agreements 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 Pennsylvania. If any provision of this Agreement is found 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 (expressed 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 First National Bank of Fredericksburg's successors and assigns. Certain of the obligations of the parties pursuant to this Agreement by their nature, would continue beyond the termination, cancellation or expiration of this Agreement.

Definitions: As used in this Agreement, the words "we," "our," "us," and "Bank" mean First National Bank of Fredericksburg. "You" and "Your" refer to the account holder authorized by Bank to use Online Banking under this Agreement and anyone else authorized by that account holder to exercise control over the account holder's funds through Online Banking. "Account" or "accounts" means your accounts at Bank. "Electronic funds transfers" means ATM withdrawals, pre-authorized transactions, point of sale transactions, transfers to and from your Bank accounts using Online Banking. "Online Banking services" means the services provided pursuant to this Agreement. "Business Days" means Monday thru Friday. Holidays are not included.

Access: To use Online Banking, you must have at least one account with Bank, and access to Internet service. Access to your accounts through Online Banking will be based upon the identification of users and authority levels maintained at the Bank. We undertake no obligation to monitor transactions through Online Banking to determine that they are made on behalf of the account holder.

Online Banking Services: You can use Online Banking to check the balance of your Bank accounts, transfer funds between your accounts, and make stop payment requests.

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.

Your Password: For security purposes, you are required to change your password upon your initial first time login to Online Banking. The password, a minimum of 6 digits, maximum of 17 digits, is determined by the account holder and is not communicated to the Bank. 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. After three unsuccessful login attempts, the system locks the user out, requiring either a designated wait period or a phone call to the Bank to reset the password before reentry into the system.

We recommend that you create a unique access ID that utilizes both upper and lowercase 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.

Guidelines for Safe Online Banking Transactions: Online security begins with the authentication process, which generally involves one or more basic factors: Something the user knows (i.e., password, PIN); something the user has (i.e., ATM card, smart card, multi factor PassMark and PassPhrase on registered computers); something the user is (i.e., a fingerprint). FNB uses multi-factor authentication for online banking purposes.

FNB would not contact customers on an unsolicited basis and request your online banking credentials. Should you ever be contacted (via telephone, e-mail, etc.) by someone claiming to be an employee of FNB, DO NOT provide any such information. Instead, please contact FNB immediately. If you notice suspicious account activity or information security related events, please contact FNB immediately. Contact information is included at the end of this Disclosure.

Following is a list of Controls that may be implemented to help detect and prevent attacks:

Anti-malware software may provide a defense against "keyloggers" and "man-in-the-middle" or "man-in-the browser" attacks. Anti-malware software is used to prevent, detect, block, and remove adware, spyware, and other forms of malware such as "keyloggers". It is important to note that anti-malware is generally signature based, and some advanced versions of malware continuously alter their signature.

As of 2/1/12, FNB requires customers that originate ACH transactions to do so under a dual control environment, preferably with 2 different computers. If one log in credential or computer is breached, ACH transactions will not be originated without the log in credentials of the second user. FNB will call to verify ACH originations > $25,000 prior to allowing origination.

Security: 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 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. Your password and access 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. Once the server session is established, the user and the server are in a secured environment. The server has been certified as a 128-bit encrypted with Secure Sockets Layer (SSL) protocol. With SSL, data that travels between the bank and customer is encrypted and can only be decrypted with the public and private key pair. Requests must filter through a router and firewall before they are permitted to reach the server. A router, a piece of hardware, works in conjunction with the firewall to block and direct traffic coming to the server. Notwithstanding our efforts to insure that Online Banking is secure, you acknowledge that the Internet is inherently insecure and that all data transfers, including electronic mail, occur openly on the Internet and potentially can be read by others. FNB is not responsible for any electronic virus or viruses that you may encounter. We suggest that you routinely scan your PC using a virus protection product. An undetermined virus may corrupt and destroy your programs, files and your hardware.

Transfers: Transfers initiated through Online Banking before 5:00 PM (Eastern Standard Time) on a business day are posted to your account the same day. Transfers completed after 5:00 PM (Eastern Standard Time) on a business day will be posted on the next business day. Transfers completed anytime during Saturday, Sunday or banking holiday will be posted on the next business day. Online Banking identifies transfers based upon the login ID of the user who made the electronic transfer. You agree to communicate with any other persons with authorized access to your accounts concerning any transfers from your accounts in order to avoid overdrafts. Because regulations require First National Bank of Fredericksburg to limit preauthorized transfers (including Online Banking transfers), the following limitations apply: For a Savings Account you are not permitted to make more than six (6) transfers per statement cycle by preauthorized, automatic transfer, by telephone or Online Banking. If you are a Money Market Account holder you may not make more than six (6) transfers per statement cycle by preauthorized, automatic transfer, telephone transfer, Online Banking, check, draft, debit card or similar order to a third party. Please note: If there are not sufficient funds in the account, we cannot complete this transfer. However, future recurring transfers will not be impacted.

Overdrafts: If your account has insufficient funds to perform all electronic fund transfers you have requested for a given business day, then:
a. Electronic funds transfers involving current disbursements, like ATM withdrawals, will have priority;
b. Electronic fund transfers initiated through Online Banking which would result in an overdraft of your account may, at our discretion, be canceled;
c. In the event electronic fund transfers initiated through Online Banking 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.
If a hold has been placed on 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.

Stop Payment Requests: To be effective, a stop-payment request must precisely identify the name of the payee, amount, check number, and date of the payment. You will incur stop payment charges as disclosed in the current fee schedule for applicable amount. A stop payment entered online before 5:00 p.m. will be placed on the item the following business day. If you need a stop payment placed on the item effective immediately, please call or visit one of our branch offices.

Periodic Statements: You will not receive a separate Online Banking statement. Transfers to and from your accounts using Online Banking will appear on the respective paper statements or e-statement for your bank accounts.

Change of 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 Bank web site or forward it to you by email or by postal mail. If advanced 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. You acknowledge and agree that changes to fees applicable to specific accounts are governed by the applicable deposit agreements and disclosures.

Your Protections Under Regulation E (Electronic Funds Transfer Act): The protections afforded by Regulation E apply to consumer accounts. They do not apply to business accounts.

In Case of Errors or Questions about Your Electronic Transfers: Contact us as soon as you can, if you think your paper statement or e-statement is wrong, or if you need more information about a transfer listed on your paper statement or e-statement. We must hear from you no later than 60 days after we sent the FIRST paper statement or e-statement upon which the problem or error appeared.

When you contact us:

1. Tell us your name and account number.
2. 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.
3. Tell us the dollar amount of the suspected error.

If you contact us by telephone or by email, we may require that you send us your complaint or question in the form of a paper writing 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 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.

ERROR RESOLUTION PROCEDURES - IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR ELECTRONIC TRANSFERS Telephone us at (717) 865-2123 or write to us at: First National Bank of Fredericksburg 3016 S. Pine Grove Street, Fredericksburg, PA 17026

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:

1. If through no fault of ours, you do not have enough money in your account to make a transfer
2. If a legal order directs us to prohibit withdrawals from the account
3. If your account is closed, or if it is to be frozen
4. 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
5. If you, or anyone authorized by you, commits any fraud or violates any law or regulation
6. If any electronic terminal, telecommunication device, or any part of Online Banking electronic fund transfer system is not working properly and you knew about the problem when you started the transfer
7. If you have not properly followed the on-screen instructions for using Online Banking
8. 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 may have taken

Unauthorized Transfers: Contact us AT ONCE if you believe that your Online Banking PIN has been lost or stolen or you think that someone has transferred or may transfer money from your account without your permission. You can report a problem by calling us at 1-800-809-7949 or by writing us at 3016 S. Pine Grove Street, Fredericksburg, Pennsylvania 17026, Attention: Online Banking Department. However, telephoning is the best way of keeping your possible losses to a minimum. If you telephone us to report a problem, we also require you to put your claim in writing to us within ten (10) business days. The loss, theft, or unauthorized use of your LOGIN and PIN could cause you to lose all the money in your account (plus the money in any account linked for the purpose of overdraft protection). However, if you tell us within two (2) business days after you learn of the loss, theft, or unauthorized transaction, you can lose no more than $50 if someone used your Online Banking LOGIN and PIN to make a transaction without your permission. If you do NOT tell us within two (2) business days after you learn of the loss, theft, or unauthorized use of your Online Banking LOGIN and PIN, and we can prove we could have stopped someone from using your Online Banking LOGIN and PIN without your permission if you had told us, you could lose as much as $500.

Also, if your statement shows a transfer(s) which you did not make, tell us at once. If you do not contact us within sixty (60) days after the statement was mailed to you, you may not get back any money lost after the 60th day, 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 notifying us, we will extend the time periods to a reasonable time.

Disclaimer of Warranty and Limitation of Liability: We make no warranty of any kind, expressed 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 First National Bank of Fredericksburg exceed the amount paid by you for the services provided to you through Online Banking.

You are responsible for obtaining, installing, maintaining and operation of all computer hardware and software necessary for Online Banking. The Bank will not be responsible for any errors or failures from the malfunction or failure of your hardware or software.

Security: You have read our security statement and acknowledge that the electronic security measures used in your Online Banking transactions are reasonable and acceptable.

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

1. Without prior notice, if you have insufficient funds in any one of your Bank accounts. Online Banking service may be reinstated, at our sole discretion, once sufficient funds are available to cover any fees, pending transfers, and debits.
2. Upon 3 business days notice, if you do not contact us to designate a new Primary Checking Account immediately after you close your checking account.
3. Upon reasonable notice, for any other reason at our sole discretion.

Electronic messages from you to us, or from us to you, will be treated as written documents for any purpose a written document is needed. However, we can require written confirmation of messages or instructions if we choose, and may delay any executing transactions until we receive confirmation acceptable to us. We might do this, for example, if we think it will help protect you or us from fraud or a loss, but we can do so in other circumstances. Please Note: This is not a secure e-mail form. Please do not include account information or items of a confidential nature.

Communication between First National Bank of Fredericksburg and You: Unless the Agreement provides otherwise, you can communicate with us in any one of the following ways:

Email: wdorsey@fnbankonline.com

Telephone: (717)865-2123 OR 1-800-809-7949

Facsimile: (717)865-7783

Postal: First National Bank of Fredericksburg, 3016 S. Pine Grove Street, Fredericksburg, PA, 17026

Online Access Agreement and Disclosure

This agreement is a contract that establishes the rules that cover electronic access to your accounts at First National Bank of Fredericksburg through Online Banking.

By using Online Banking, you accept all the terms and conditions of this Agreement. Please read it carefully.

The terms and conditions of the deposit agreements and disclosures for each of your First National Bank of Fredericksburg's accounts as well as your other agreements 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 Pennsylvania. If any provision of this Agreement is found 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 (expressed 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 First National Bank of Fredericksburg's successors and assigns. Certain of the obligations of the parties pursuant to this Agreement by their nature would continue beyond the termination, cancellation or expiration of this Agreement.

Definitions: As used in this Agreement, the words "we," "our," "us," and "Bank" mean First National Bank of Fredericksburg. "You" and "Your" refer to the account holder authorized by Bank to use Online Banking under this Agreement and anyone else authorized by that account holder to exercise control over the account holder's funds through Online Banking. "Account" or "accounts" means your accounts at Bank. "Electronic funds transfers" means ATM withdrawals, pre-authorized transactions, point of sale transactions, transfers to and from your Bank accounts using Online Banking. "Online Banking services" means the services provided pursuant to this Agreement. "Business Days" means Monday thru Friday. Holidays are not included.

Access: To use Online Banking, you must have at least one account with Bank, and access to Internet service. Access to your accounts through Online Banking will be based upon the identification of users and authority levels maintained at the Bank. We undertake no obligation to monitor transactions through Online Banking to determine that they are made on behalf of the account holder.

Online Banking Services: You can use Online Banking to check the balance of your Bank accounts, transfer funds between your accounts, and make stop payment requests.

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. You may restrict hours of access by user.

Your Password: For security purposes, you are required to change your password upon your initial first time login to Online Banking. The password, a minimum of 6 digits, maximum of 17 digits, is determined by the account holder and is not communicated to the Bank. 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. After three unsuccessful login attempts, the system locks the user out, requiring either a designated wait period or a phone call to the Bank to reset the password before reentry into the system.

We recommend that you create a unique access ID that utilizes both upper and lowercase 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.

Guidelines for Safe Online Banking Transactions: Online security begins with the authentication process, which generally involves one or more basic factors: Something the user knows (i.e., password, PIN); something the user has (i.e., ATM card, smart card, multi factor PassMark and PassPhrase on registered computers); something the user is (i.e., a fingerprint). FNB uses multi-factor authentication for online banking purposes. Layered security (i.e., ACH transaction that is originated online must be confirmed via telephone) is a requirement for some types of transactions as of 1/1/12, for increased safety.

There have been significant changes in the threat landscape in recent years. Fraudsters have deployed more sophisticated methods to compromise authentication mechanisms and gain unauthorized access to customers' online accounts. Business accountholders especially have been targeted for account hijacking. You can make your computer safer by installing and updating regularly your anti-virus software; anti-malware programs; firewalls on your computer; operating system patches and updates. To learn more about online safety, visit http://www.uschamber.com/issues/technology/internet-security-essentials-business or http://onguardonline.gov/articles/0011-malware. If you notice suspicious activity within your account or experience security-related events (such as a Phishing e-mail), please contact FNB immediately. Contact information is included at the end of this Disclosure.

FNB would not contact customers on an unsolicited basis and request your online banking credentials. Should you ever be contacted (via telephone, e-mail, etc.) by someone claiming to be an employee of FNB, DO NOT provide any such information. Instead, please contact FNB immediately. If you notice suspicious account activity or information security related events, please contact FNB immediately. Contact information is included at the end of this Disclosure.

Following is a list of Controls that may be implemented to help detect and prevent attacks:

Anti-malware software may provide a defense against "keyloggers" and "man-in-the-middle" or "man-in-the browser" attacks. Anti-malware software is used to prevent, detect, block, and remove adware, spyware, and other forms of malware such as "keyloggers". It is important to note that anti-malware is generally signature based, and some advanced versions of malware continuously alter their signature.

As of 2/1/12, FNB requires businesses that originate ACH transactions to do so under a dual control environment, preferably with 2 different computers. If one log in credential or computer is breached, ACH transactions will not be originated without the log in credentials of the second user. FNB will call to verify ACH originations > $25,000 prior to allowing origination. Transaction monitoring/anomaly detection software monitors online banking activity for suspicious funds transfers. At this time, FNB is unable to offer this as a real-time solution.

Out-of-band authentication means that a transaction that is initiated via one delivery channel (i.e., the Internet) must be re-authenticated via another delivery channel (i.e., the telephone).

A number of vendors have developed USB devices that increase session security when plugged into the customer's PC. These generally enable a secure link between the customer's PC and the bank. Typically, the device is "read only" and cannot be altered by the customer or the malware infecting the PC.

The use of restricted funds transfer recipient lists or other controls over the administration of such lists can reduce funds transfer fraud.

Time of day restrictions can restrict access to i.e., Monday through Friday 9:00 a.m. to 5:00 p.m. This can help reduce the possibility of fraud. To verify your current time of day access (by user), or to change time of day access (by user), please contact FNB. Contact information is included at the end of this Disclosure.

FNB strongly suggests that each business customer perform a related risk assessment and review existing controls periodically.

Security: 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 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. Your password and access 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. Once the server session is established, the user and the server are in a secured environment. The server has been certified as a 128-bit encrypted with Secure Sockets Layer (SSL) protocol. With SSL, data that travels between the bank and customer is encrypted and can only be decrypted with the public and private key pair. Requests must filter through a router and firewall before they are permitted to reach the server. A router, a piece of hardware, works in conjunction with the firewall to block and direct traffic coming to the server. Notwithstanding our efforts to insure that Online Banking is secure, you acknowledge that the Internet is inherently insecure and that all data transfers, including electronic mail, occur openly on the Internet and potentially can be read by others. FNB is not responsible for any electronic virus or viruses that you may encounter. We suggest that you routinely scan your PC using a virus protection product. An undetermined virus may corrupt and destroy your programs, files and your hardware.

Your Protections Under Regulation E (Electronic Funds Transfer Act): The protections afforded by Regulation E do not apply to business accounts.

Transfers: Transfers initiated through Online Banking before 5:00 PM (Eastern Standard Time) on a business day are posted to your account the same day. Transfers completed after 5:00 PM (Eastern Standard Time) on a business day will be posted on the next business day. Transfers completed anytime during Saturday, Sunday or banking holiday will be posted on the next business day. Online Banking identifies transfers based upon the login ID of the user who made the electronic transfer. You agree to communicate with any other persons with authorized access to your accounts concerning any transfers from your accounts in order to avoid overdrafts. Because regulations require First National Bank of Fredericksburg to limit preauthorized transfers (including Online Banking transfers), the following limitations apply: For a Savings Account you are not permitted to make more than six (6) transfers per statement cycle by preauthorized, automatic transfer, telephone or Online Banking. If you are a Money Market Account holder you may not make more than six (6) transfers per statement cycle by preauthorized, automatic transfer, telephone transfer, Online Banking, check, draft, debit card, or similar order to a third party. Please note: If there are not sufficient funds in the account, we cannot complete this transfer. However, future recurring transfers will not be impacted.

Overdrafts: If your account has insufficient funds to perform all electronic fund transfers you have requested for a given business day, then:

a. Electronic funds transfers involving current disbursements, like ATM withdrawals, will have priority;
b. Electronic fund transfers initiated through Online Banking which would result in an overdraft of your account may, at our discretion, be canceled;
c. In the event electronic fund transfers initiated through Online Banking 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.

If a hold has been placed on 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.

Stop Payment Requests: To be effective, a stop-payment request must precisely identify the name of the payee, amount, check number, and date of the payment. You will incur stop payment charges as disclosed in the current fee schedule for applicable amount. A stop payment entered online before 5:00 p.m. will be placed on the item the following business day. If you need a stop payment placed on the item effective immediately, please call or visit one of our branch offices.

Periodic Statements: You will not receive a separate Online Banking statement. Transfers to and from your accounts using Online Banking will appear on the respective paper statements or e-statement for your bank accounts.

Change of 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 Bank web site or forward it to you by email or by postal mail. If advanced 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. You acknowledge and agree that changes to fees applicable to specific accounts are governed by the applicable deposit agreements and disclosures.

In Case of Errors or Questions about your Electronic Transfers: You have 24 hours to notify us of an error regarding an electronic transfer.

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:

1. If through no fault of ours, you do not have enough money in your account to make a transfer
2. If a legal order directs us to prohibit withdrawals from the account
3. If your account is closed, or if it is frozen
4. 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
5. If you, or anyone authorized by you, commits any fraud or violates any law or regulation
6. If any electronic terminal, telecommunication device, or any part of Online Banking electronic fund transfer system is not working properly and you knew about the problem when you started the transfer
7. If you have not properly followed the on-screen instructions for using Online Banking.
8. 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 may have taken

Disclaimer of Warranty and Limitation of Liability: We make no warranty of any kind, expressed 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 First National Bank of Fredericksburg exceed the amount paid by you for the services provided to you through Online Banking.

You are responsible for obtaining, installing, maintaining and operation of all computer hardware and software necessary for Online Banking. The Bank will not be responsible for any errors or failures from the malfunction or failure of your hardware or software.

Security: You have read our security statement and acknowledge that the electronic security measures used in your Online Banking transactions are reasonable and acceptable.

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

1. Without prior notice, if you have insufficient funds in any one of your Bank accounts. Online Banking service may be reinstated, at our sole discretion, once sufficient funds are available to cover any fees, pending transfers, and debits.
2. Upon 3 business days notice, if you do not contact us to designate a new Primary Checking Account immediately after you close your checking account.
3. Upon reasonable notice, for any other reason at our sole discretion.

Electronic messages from you to us, or from us to you, will be treated as written documents for any purpose a written document is needed. However, we can require written confirmation of messages or instructions if we choose, and may delay any executing transactions until we receive confirmation acceptable to us. We might do this, for example, if we think it will help protect you or us from fraud or a loss, but we can do so in other circumstances. Please Note: This is not a secure e-mail form. Please do not include account information or items of a confidential nature.

Communication between First National Bank of Fredericksburg and You: Unless the Agreement provides otherwise, you can communicate with us in any one of the following ways:

Email: wdorsey@fnbankonline.com

Telephone: (717) 865-2123 OR 1 (800) 809-7949

Facsimile: (717) 865-7783

Postal: First National Bank of Fredericksburg, 3016 S. Pine Grove Street, Fredericksburg, PA, 17026