VILLAGE BANK™ INTERNET BANKING AGREEMENT AND ELECTRONIC FUNDS TRANSFER ACT NOTICE

TABLE OF CONTENTS:

Introduction

Agreement

Definitions

Account Ownership

Access

System Services

Hours of Access

Log In Security

Internet Browser Security Information

Fees and Charges

Posting of Transfers

Overdrafts (Order of Payments, Transfer and other Withdrawals)

Limits on Amounts and Frequency of System Transactions

Village Bank Internet Banking Bill Payment Service

Periodic Statements

Change in Terms

Inquiries About Your Electronic Transfers, Including Bill Payments

Our Liability For Failure To Make A Transfer Or For Making An Erroneous Transfer

Disclaimer Of Warranty And Limitations Of Liability

Your Liability For Unauthorized Transfers

Confidentiality

Third Party Network Disclaimer

Third Party Software Virus Protection

Hardware and Software Requirements

Your Right To Terminate This Agreement

The Bank’s Right To Terminate This Agreement

Electronic Mail

Communication Between the Bank And You

Consent To Electronic Delivery Of Notices

Ownership Of Website

Miscellaneous

Introduction

Please read the following Agreement carefully. After you have read this Agreement, you may use Village Bank’s internet banking product, known as Village Bank Internet Banking, by logging into Village Bank Internet Banking and completing the login protocol. This Agreement is copyrighted by Village Bank and its reproduction or distribution is prohibited without express consent of Village Bank.

Agreement

This Agreement, which includes currently applicable fees and charges, is the contract which establishes the terms and conditions that apply when you use Village Bank’s internet banking product, “Village Bank Internet Banking”, which permits electronic access to your accounts at Village Bank (the “Bank”). By using Village Bank Internet Banking or permitting any other person to use Village Bank Internet Banking, you accept all the terms and conditions of this Agreement.

The terms and conditions of this Agreement are in addition to any deposit agreements, deposit account rules and regulations, fee schedules and disclosures for each of your accounts as they may change from time to time, (collectively, the “Deposit Agreement”) as well as your other agreements with the Bank, including, but not limited to, your signature card, any loan-related agreement or overdraft protection agreement, any changes of terms or notices, and any rules or regulations that govern the use of your accounts.

This Agreement, together with any Deposit Agreement, and any other documentation relating to other features of Village Bank Internet Banking, constitutes the entire Agreement between you and the Bank with respect to subject matter of this Agreement, and there are no unwritten understandings or agreements as to these matters.

Definitions

As used in this Agreement, the words "we", "our", "us" and "Bank" mean Village Bank and any affiliated entity or authorized agent.

"You" and "your" refer to the account owner(s) authorized to use Village Bank Internet Banking under this Agreement and anyone else authorized by the account owner(s) to exercise control over the account owner(s) funds through Village Bank Internet Banking otherwise known as "Authorized User".

"Account" or "accounts" means your account or accounts at the Bank eligible for Village Bank Internet Banking as determined by the Bank. "Electronic" means electrical, digital, magnetic, wireless, optical or electromagnetic technology, or any other technology that entails similar capabilities.

"Electronic funds transfers" means any electronic banking transaction, including, but not limited to, ATM withdrawals, pre-authorized transactions, point of sale transactions, transfer to and from your accounts using Village Bank Internet Banking, including bill payments.

"Payee" means any individual, bank, educational institution, company, merchant or other business entity you wish to pay using the Bill Payment Service.

"System Services" means the services provided pursuant to the Agreement, including, but not limited to, the Bill Payment Service.
"Business Days" means Monday through Friday, excluding bank holidays.

Account Ownership

The provisions of this paragraph apply if any of your accounts with the Bank is a joint account. When your Village Bank Internet Banking service is linked to one or more joint accounts, the Bank may act on the verbal, written or electronic instructions of any authorized signer on the accounts regarding your service. Each joint account owner with account access to Village Bank Internet Banking is jointly and severally bound by this Agreement. Each of you acting alone, under separate, assigned Village Bank Internet Banking ID and Village Bank Internet Banking PIN, may perform transactions, pay bills, obtain information, change payments or transfers, terminate this Agreement or otherwise transact business, take actions or perform under this Agreement. The Bank is not required to obtain the consent of or notify either of you about the actions of other joint owners or any Authorized User. However, each of you will only be permitted to access accounts for which you are an owner or Authorized User. Each of you individually releases the Bank from liability and agrees not to make a claim or bring any action against us for honoring the instructions of another owner on your account or of any Authorized User authorized to use Village Bank Internet Banking. Each of you agrees to indemnify and hold the Bank harmless from any and all liability (including, but not limited to, reasonable attorney's fees) arising from any such claims or actions.

Access

To use Village Bank Internet Banking, you must have at least one active account at the Bank, a computer, access to the Internet and an Email address. You must have a Bank checking account to utilize the Bill Payment Service feature. To access Village Bank Internet Banking, you must use the Village Bank Internet Banking ID or other means of access we establish, together with a Village Bank Internet Banking PIN of your choosing, and any other security protocol we establish. To access the Bill Payment Service, you must first have an established Village Bank Internet Banking account and be logged on to Village Bank Internet Banking. Anyone to whom you give your Village Bank Internet Banking ID and PIN will have full access to your accounts at the Bank even if you attempt to limit that person's authority. Thus you assume the risk of financial loss should you give someone else authorized access and should they exceed the scope of any authorized access.

Changes to account information must be communicated to us by an account owner in writing. We undertake no obligation to monitor transactions through Village Bank Internet Banking to determine that they are made on behalf of the account owners and authorized users.

System Services

You can use Village Bank Internet Banking to: check the balance of your accounts, view account transaction histories, transfer funds between your accounts, order checks, and pay bills if approved by Village Bank from your accounts in the amounts and on the dates requested. Additional services and enhancements to existing services may be added by us from time to time without prior notice. Account balances may have been adjusted from the previous day's ending balance by the amount of online memo transactions such as current or pending in-person teller, ATM, debit, POS or ACH transactions not yet officially posted to your account. Final account balances in your account shall be determined by the Bank according to the financial records system used by us (which may not be the account balance displayed via Village Bank Internet Banking).

Hours of Access

You can use Village Bank Internet Banking seven days a week, twenty-four (24) hours a day, although some or all services may not be available occasionally due to emergency or scheduled system maintenance or events beyond our control. We agree to post notice of any extended or unusual periods of non-availability on the Village Bank website. Our inability to post such a notice of non-availability does not override the Deposit Agreement governing your account(s). Additionally, we may modify, suspend, or terminate access to Village Bank Internet Banking at any time and for any reason without notice or refund of fees you have paid, if any.

Log In Security

By using Village Bank Internet Banking, you acknowledge and agree that this Agreement sets forth security procedures for electronic banking transactions which are commercially reasonable. You agree to be bound by instructions, whether authorized or unauthorized, which we implement in compliance with these procedures, unless you have given us prior notice of possible unauthorized use as described below and we had a reasonable opportunity to act on such notice.

Security is very important to Village Bank. When you login to the service for the first time, you will enter your account number and initial password. Your password will be your telephone banking password, or, if you have not used our telephone banking service, your initial password will be the last four digits of your social security number (personal accounts) or taxpayer identification number (business accounts). You must be an owner or authorized signer on the account to be an authorized user.

You will then be prompted to select a new "Access ID" and "Password" that you will thereafter use to gain access to your accounts. You should select a new Access ID and a new Password known only to you. Passwords are case sensitive (must be entered exactly as input with upper and/or lower case characters). Your password must contain both alpha and numeric characters, must contain at least two letters, must include at least one alpha case change, and must be a total of 6 to 16 characters. You determine what Password you will use and the identity of your Password is not communicated to us. You agree that we are authorized to act on instructions received under your Password. Because your Password is used to access your accounts, you should treat it as you would any other sensitive personal data. You should carefully select a Password that is hard to guess. The most commonly used Passwords are family names, names of children, social security numbers, addresses, dates of birth and telephone numbers. These Passwords should be avoided. Keep your Password safe. Memorize your Password and never tell it to anyone unless you intend to allow that person access to your accounts.

If you authorize another person to use your Access ID and Password, that person can use Village Bank Internet Banking to view any information or initiate any transaction on any of the accounts to the same extent as you, including viewing information or initiating transactions on accounts to which that person does not otherwise have access. As such, your sharing of your Access ID and Password is strongly discouraged by Village Bank, and done at your sole risk and peril.

Passwords can be changed at any time by the account owner through the Village Bank Internet Banking system. You are encouraged to change your Password regularly, such as every 60 to 90 days. This can be done at any time, after you logged in, from the "options" menu.

You should always exit Village Bank Internet Banking after you finish viewing your accounts. Never leave your computer unattended while accessing Village Bank Internet Banking. If you choose to do so, a third party may be able to access your accounts from your terminal, without ever needing to use your Access ID and Password.

Your session time limit is limited to 60 minutes. To help prevent unauthorized access and ensure the security of your accounts, we will end your online session if we have detected no activity for 20 minutes. This is to protect you in case you accidentally leave your computer unattended after you log on. When you return to your computer, you will be prompted to re-enter your password and your session will continue where you left off.

The Village Bank Internet Banking system will allow a user to try to correctly enter their Access ID and Password for up to three (3) tries. If entry is unsuccessful after the third try, you should contact your branch office by telephone. Passwords are encrypted so that we cannot see your actual Password. We will provide you with a temporary Password and the system will require you to change it to a new Password the next time you log into Village Bank Internet Banking.

The Bank is committed to the highest standards for your account security. We use the latest technologies to safeguard the privacy and security of your personal information. Federal regulations also encourage us to implement features to strengthen the security of Village Bank Internet Banking. We call this Multifactor Authentication or "MFA".

MFA will be established for Village Bank Internet Banking solely at the Bank's discretion and may be changed or discontinued at any time without notice. The first time you sign in to Village Bank Internet Banking we will begin collecting a usage profile for you. This profile will include a log of your "normal" log in behaviors to help us match future log in activity against. Additionally, we will provide you with a selection of challenge questions. You will be prompted to select and answer challenge questions. Choose questions whose answers are easy for you to remember. You should not print, store, save or share your selected challenge questions and answers with anyone.

Every time you log in to Village Bank Internet Banking, we will check your usage profile against the terms of your current log in. Should any terms fall outside of your recognized profile, you will be presented with your selected challenge questions. Once you successfully answer your challenge questions, you will be logged in to Village Bank Internet Banking. The Bank may deny Village Bank Internet Banking account access if you cannot complete the MFA protocol.

If you have additional questions regarding MFA, please contact one of our branch offices.

YOU AGREE TO KEEP YOUR ACCESS ID AND PASSWORD CONFIDENTIAL. USE OF THE ACCESS ID AND PASSWORD BY YOU OR BY ANY OTHER PERSON WITH YOUR AUTHORIZATION WILL BE CONSIDERED THE SAME AS YOUR WRITTEN SIGNATURE AUTHORIZING US TO COMPLETE ANY TRANSACTION OR REQUEST COMMUNICATED THROUGH VILLAGE BANK INTERNET BANKING. VILLAGE BANK WILL HAVE NO LIABILITY TO YOU FOR ANY UNAUTHORIZED PAYMENT OR TRANSFER MADE USING YOUR PASSWORD THAT OCCURS BEFORE YOU HAVE NOTIFIED US OF POSSIBLE UNAUTHORIZED USE AND WE HAVE HAD A REASONABLE OPPORTUNITY TO ACT ON THAT NOTICE.

Internet Browser Security Information

Village Bank Internet Banking is part of a network that utilizes a comprehensive security strategy to protect your accounts and transactions conducted over the Internet. In-depth information on many of the techniques and features employed by the system can be viewed and are explained in our Village Bank Internet Banking Security statement. In addition to our login security, we use the SSL (secure socket layer) encryption technology that supports 128-bit key encryption for everything you do in the Village Bank Internet Banking system. It is important to verify that a secure connection between your browser and the Village Bank Internet Banking server has been established before transmitting any confidential account information over the Internet. Whenever SSL is securing your communications, the browser will typically indicate the "secure session" by changing the appearance of a small icon on the padlock at the bottom of the screen from open to lock. What this means to you is that your communications are scrambled from your browser to our servers at all times so no unauthorized party can read the information as it is carried over the Internet.

Fees and Charges

The Village Bank Internet Banking service is available to our personal and business account customers at no monthly charge for account information services, transfers between accounts, and unlimited bill payment.

However, there may be fees charged by the Bank depending on the type of account you access for these services. You might incur charges for:

• Normal account fees and service charges
• Any Internet service provider fees
• Transactions or transfers made through Village Bank Internet Banking from a savings or Money Market account may result in an excess transaction fee. See your savings or Money Market account disclosures for details.
• A non-sufficient funds fee may also apply if you schedule payments or transfers and your available balance is not sufficient to process the transaction on the date scheduled.
• We may charge you a research fee of $25.00 per hour for an inquiry about any on-line transaction that occurred more than 180 days before the date you make the inquiry. This fee will be waived if we determine that a bank error occurred.

Posting of Transfers

Electronic funds transfers initiated through Village Bank Internet Banking until 4:00 PM (Eastern Time) on a Business Day are posted to your account the same day, provided funds are available. Electronic funds transfers completed after 4:00 PM (Eastern Time) on a Business Day, or anytime on a Saturday, Sunday or a bank holiday will be posted on the next Business Day, provided funds are available.

Overdrafts (Order of Payments, Transfer and other Withdrawals)

If your account has insufficient available funds to perform all electronic funds transfers you have requested for a given Business Day, then:

1. Electronic funds transfers involving currency disbursements, like ATM withdrawals, will have posting priority;
2. Electronic funds transfers initiated through Village Bank Internet Banking which would result in an overdraft of your account may, at our discretion, be cancelled, unless you have an existing overdraft protection account or overdraft line of credit with the Bank with sufficient available credit which would result in an advance against such overdraft account or overdraft line of credit sufficient to pay the item(s) in question; and
3. In the event the electronic funds transfer initiated through Village Bank Internet Banking result in an overdraft on your account are not cancelled, overdraft charges may be assessed pursuant to the terms of the Deposit Agreement.

Limits on Amounts and Frequency of System Transactions

Your ability to transfer funds from certain accounts, such as Money Market accounts and savings accounts, is limited by federal law and regulation and by the Deposit Agreement. You should refer to the Deposit Agreement for legal restrictions and service charges applicable to excessive withdrawals or transfers and any applicable penalties. Electronic Funds Transfers made using Village Bank Internet Banking are counted against the permissible number of transfers for these type accounts as described in the Deposit Agreement. Village Bank does not permit bill payment service from Money Market or savings accounts. If a hold has been placed on deposits made to accounts from which you wish to transfer funds, the funds held are unavailable until the expiration of the hold.

Village Bank Internet Banking Bill Payment Service

If you enroll and we accept your enrollment in the optional Village Bank Internet Banking Bill Payment service, you will be able to schedule bill payments and see a history of all the payments made from your accounts. You need to designate a specific Village Bank checking account as your bill payment account.

Restrictions: Accountholders that require two (2) signatures for withdrawal purposes will be unable to access the Village Bank Internet Banking Bill Payment service.

Eligibility: You may pay any merchant or individual approved for payment by the Bank through the Village Bank Internet Banking Bill Payment service. Such bill payments are available only to payees with a U.S. mailing address. We are unable to process any payments to federal, state or local tax agencies, and any court-ordered payments such as alimony or child support.

Bill Pay Procedure: By furnishing us with the names and account information of those payees to whom you wish to direct payment, you authorize us to follow the payment instructions, which you provide to us via the Village Bank Internet Banking Bill Payment service for these payees. When we receive your payment instruction for the current date or future date, we will remit the funds to the payee on your behalf from the funds in your selected account; on the day you have instructed them to be sent (Payment Date). We reserve the right to restrict categories of payees to whom payment may be made using the Village Bank Internet Banking Bill Payment service.

The daily limit for the total dollars of payments approved is governed by the system's available balance in the checking account selected for making the payment. You can withdrawal up to the system's available balance as long as your account shows sufficient funds to cover your payments. A payment will normally be debited to your account on the Business Day that you selected.

If for any reason a scheduled payment processed through the Village Bank Internet Banking Bill Payment service is declined, it will automatically be rescheduled for the following Business Day. The system will continue to attempt to pay the bill on the following Business Days until there are sufficient funds or you cancel or reschedule it. There may be NSF fee(s) assessed based upon the Bank's fee schedule.

Time of bill payments: Although payments may be scheduled for the current Business Day or any date in the future at any time, they will only be processed each Business Day at our cut-off time of 4:00 PM (Eastern Time). Anything scheduled on a non-Business Day, or after the cut-off time, will not be processed until the following Business Day.

Since we must forward the funds and billing information to the payee, some lead-time for payments is necessary. (Our system assumes the payee/vendor will promptly process the payment on the Business Day it is received. Any delays caused by the payee/vendor would result in additional days before the payment would show on their records.)

To avoid incurring a finance charge or other charges, you must schedule a payment sufficiently in advance of the due date of your payment. It is necessary that all Payment Dates selected by you be no less than five (5) full Business Days before the actual due date, not the late date and/or a date in the grace period. If you do not schedule a bill payment in sufficient time or you do not otherwise initiate a bill payment properly, you will be solely responsible for any late charges, finance charges, or other costs resulting from failure to make the bill payment on time. You are solely responsible for all data entry errors.

Checks: Not all payees accept electronic bill payments. In the event that the payee for your scheduled payment does not accept payment via the electronic system, your payment will be made by mailing a paper check. The check will be signed by the Bank or its representative, and will not be signed by you; however, you agree that any check issued in this manner to make a bill payment will be deemed authorized by you. Paper payments require longer delivery time. Payments made by paper should be scheduled at least seven (7) full Business Days prior to the actual due date, not the late date and/or a date in the grace period. In all cases, the payment will be delivered to the payee/vendor by the tenth Business Day after the payment was approved and charged to your account.

Occasionally, a payee may choose not to participate in the Village Bank Internet Banking Bill Payment service, or may require additional information before accepting payments. We will work with payees to encourage them to accept an electronic or check payment from the Bank. If we are unsuccessful, or if we determine that the payee cannot process payments in a timely manner, the Bank may decline future payments to this payee. In the unlikely event that this occurs, the Bank will promptly send you a notice. If a third party acting upon your instruction issued through Village Bank Internet Banking Bill Payment service is unsuccessful in executing your instructions you may receive notification from the third party after its best efforts to research and correct the returned payment. Village Bank may rely on the representations of the third party in its sole discretion.

Returned or rejected bill payments: If a bill payment is returned or rejected by the Bank (including, without limitation, any intermediary bank or the Payee's bank), the Bank will notify you and you will be solely responsible for re-initiating the bill payment. If a bill payment is returned by a third party used to implement Bill Payment services you may receive notification from the third party after its best efforts to research and correct the returned payment. You agree to furnish to the Bank such information as it may request to resolve any error or inquiry arising out of your initiation of any bill payment(s).

Periodic Statements

All Village Bank Internet Banking originated transactions will appear on the periodic account statement(s) we provide or otherwise make available to you for your account(s). You will receive a periodic statement for each account's cycle in which an electronic funds transfer has occurred. You agree to notify us promptly if you change your address or if you believe there are any errors or unauthorized transactions on any statement or statement information.

Change in Terms

We may change any term of this Agreement at any time. If the change would result in increased fees for any Village Bank Internet Banking service, increased liability for you, fewer types of available electronic funds transfers or stricter limitations on the frequency or dollar amount of transfers, we agree to give you notice at least thirty (30) days before the effective date of any such change, unless immediate change is necessary to maintain the security of an account or our electronic funds transfer system or we are required to act in a shorter time period by our supervisory regulatory agencies. We may post any required notice of change in terms on the Bank's website or forward it to you by e-mail or postal mail. If the advance notice of the change is not required, and disclosure does not jeopardize the security of the account or our electronic funds transfer system, we will notify you of the change in terms within thirty (30) days after the change becomes effective. Your continued use of Village Bank Internet Banking indicates your acceptance of the change in terms. We reserve the right to waive, reduce or reverse charges or fees at our sole discretion. You acknowledge and agree that the applicable deposit account agreements and disclosures govern changes to fees applicable to specific accounts. You also agree to accept notification on any and all changes to these accounts by e-mail.

Inquiries About Your Electronic Transfers, Including Bill Payments

Contact the Bank as soon as you can if you think your periodic paper or electronic statement is wrong, or if you need more information about a transfer listed on either statement. You may contact us for this purpose by any of the methods stated in the section of this Agreement titled "Communications Between Bank and You". We must hear from you no later than sixty (60) days after we sent you the FIRST paper statement or electronic 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 is related to a bill payment made via Village Bank Internet Banking Bill Payment service, tell us the account number used to pay the bill, payee name, the date the payment was sent, payment amount, Bill Payer ID number and the payee account number for the payment in question

If you contact us by telephone or by e-mail, we may require that you send us your complaint or question in writing by postal mail or fax within ten (10) Business Days.

The Bank will determine whether an error has occurred within ten (10) Business Days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to forty-five (45) days to investigate your complaint or question. If we decide to do this, we will provisionally credit your account within ten (10) Business Days for the amount you think is in error, so you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it in writing within ten (10) Business Days of our request, we may not provisionally credit your account.

The Bank will tell you the results of our investigation within three (3) Business Days after completing our investigation. If we find that there was no error, we will send you a written explanation. You may ask for copies of the documents we used in our investigation. If we have made a provisional credit, a corresponding debit may be made from your account.

If your notice of an error involves a point-of-sale (POS) or international transaction, we may take up to ninety (90) days to investigate your complaint or question.

If your notice of an error involves a transaction that occurred during the first thirty (30) days after the first deposit to the account, the applicable time periods are twenty (20) Business Days and ninety (90) days respectively.

Our Liability For Failure To Make A Transfer Or For Making An Erroneous Transfer

If the Bank does not complete an electronic funds transfer to or from your account, including bill payment, on time or in the correct amount, according to our Agreement with you when you have properly instructed us, we will be liable to you as follows:

1. We will use our best efforts to return the improperly transferred funds to the Account, and
2. We will direct to the proper payee any previously misdirected payment or transfers, and
3. We will pay any late fees assessed due to our error or omission

You agree to assist us, as necessary, in our efforts to recover any misdirected funds and otherwise comply with your payment instructions. If we cause an incorrect amount of funds to be credited to your account, you agree that we may take any action appropriate to correct the error and prevent you from being unjustly enriched.

The Bank will not be liable in the following circumstances and as otherwise provided in this Agreement and in any Deposit Agreement:

1. If, through no fault of ours, you do not have enough available money in your account to make a transfer;
2. If a legal order or other legal process directs us to prohibit withdrawals from the account;
3. If your account is closed, frozen or subject to a hold;
4. If the transfer would cause your balance to go over the credit limit of an established overdraft protection account or overdraft line of credit or the credit limit for any other 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 Village Bank Internet Banking electronic funds transfer system is not working properly and this problem should have been apparent to you, or we advised you of such malfunction, when you started the transfer;
7. If you have not provided us with complete and correct payment information for 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;
8. If you have not properly followed the on-screen instructions for using Village Bank Internet Banking;
9. If circumstances beyond our direct control (including, but not limited to fire, flood, interruption of telephone or other communication service, etc.) prevent the transfer, despite reasonable precautions that we have taken;
10. If you pay a bill too late to timely arrive at the payee’s place of business;
11. We made a timely payment but the payee (i.e. a merchant or other institution) did not timely credit your payment;
12. If your transfer or payment authorization terminates by operation of law;
13. If you become aware of facts which suggest that someone has accessed your accounts without your permission and you fail to notify Bank immediately upon your discovery;
14. If we have a reasonable basis for believing that unauthorized use of your Village Bank Internet Banking ID and PIN or any of your accounts has occurred or may be occurring;
15. If your operating system or software was not properly installed or functioning properly;
16. If you default under this Agreement, the Deposit Agreement, a credit agreement or any other agreement with us or if you or we terminate this Agreement

The foregoing shall constitute our entire liability and your exclusive remedy. In no event shall we be liable for any direct, indirect, special, incidental, consequential, or exemplary damages, including lost profits (even if advised of the possibility thereof) arising in any way out of the use of Village Bank Internet Banking. Further, in no event shall the liability of the Bank and its affiliates exceed the amounts paid by you for the services provided to you through Village Bank Internet Banking.

Disclaimer Of Warranty And Limitations Of Liability

We make no warranty of any kind, express or implied, including any implied warranty of merchantability or fitness for a particular purpose, in connection with Village Bank Internet Banking services provided to you under this Agreement. We do not and cannot warrant that Village Bank Internet Banking will operate without errors, or that any or all Village Bank Internet Banking will be available and operational at all times, or that you will always have access to Village Bank Internet Banking. We do not warrant that our services, the Internet or our suppliers will be available on a specified date or time or have the capacity to meet your demands during specific hours. Neither the Bank nor its suppliers will be liable for any damage that you may suffer arising out of the use of, or inability to use, the services or products provided under this Agreement. Neither the Bank nor its suppliers will be liable for unauthorized access to the Bank's transmissions facilities, premises, or equipment or for unauthorized access to or alteration, theft or destruction of your data files, programs, procedures or information through accident, fraudulent means or devices or any other method, regardless of whether such damage occurs as a result of the Bank's or its suppliers' negligence. If the Bank supplies software, neither we, nor any software supplier nor information provider represents and warrants to you that the software, as defined below, we supply to you for Village Bank Internet Banking is free from any defects, computer virus or other software-related problems. In the event of such defects or computer virus caused by the software, the Bank's sole responsibility shall be limited to the replacement or the reasonable cost of replacement of the software we provided in connection with the Village Bank Internet Banking services. Further, we will not be liable for any indirect, special, consequential, economic or other damages. In states that do not allow the exclusion or limitation of liability for indirect, special, incidental or consequential damages, the Bank's liability is limited to the extent permitted by applicable law.

Your Liability For Unauthorized Transfers

Contact the Bank at once if you believe your Village Bank Internet Banking PIN has been lost, stolen or used without your authorization or otherwise compromised, or if someone has transferred or may transfer money from your accounts without your permission. You may contact us for this purpose by any of the methods stated below in the section of this Agreement titled "Communications Between the Bank and You". An immediate telephone call to us and discussion with a Bank representative is the best way to reduce any possible losses. We may ask you to provide us your complaint or question in writing by postal mail or fax within ten (10) Business Days. If you contact us within two (2) Business Days after you learn of the loss, theft, compromise or unauthorized use of your password, you can lose no more than $50 if someone used your password without your permission.

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

Also, if your periodic statement shows transfers that you did not make, contact the Bank at once. If you do not tell us within sixty (60) days after the FIRST statement showing such a transfer was mailed or provided to you, you may not get back any money you lost through transactions made after the sixty (60) day time period if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason, such as a long trip or hospital stay, kept you from contacting us, we may extend the time above periods in our sole discretion.

You agree to assist the Bank in its efforts to recover any funds that were transferred or paid without your consent or otherwise unauthorized.

Confidentiality

The importance of maintaining the confidentiality and privacy of the information provided by our customers is one of the Bank's highest priorities. We will disclose information to third parties about your account(s) or the transfer(s) you make only in the following situations:

1. Where it is necessary for completing a transfer;
2. In order to verify the existence and condition of your account(s) to a third party, such as a credit bureau;
3. In order to comply with any government agency or court orders or officials having legal authority to request such information;
4. As required by applicable law or regulation;
5. If you give us your written permission

For further information, please read our online Privacy Statement.

Third Party Network Disclaimer

You may not resell or redistribute any services you receive through Village Bank Internet Banking, or our other services, or from our suppliers. You acknowledge and agree that neither the Bank nor its suppliers are responsible for the content of your transmissions, which may pass through any Internet Service Provider or over the Internet. You agree to take reasonable steps to ensure you will not use the services provided to you or the Internet for illegal or disruptive purposes.

Third Party Software Virus Protection

The Bank makes no representations or warranties regarding the accuracy, functionality or performance of any third party software that may be used in connection with Village Bank Internet Banking, (for example: Quicken or Microsoft Money). The Bank is not responsible for any electronic virus that you may encounter. The Bank highly recommends the use of manufacturer-recommended virus detection software for your computer and that you regularly update such virus detection software.

Hardware and Software Requirements

To be able to use the Village Bank On-Line Banking service, you must provide your own personal computer (a "PC") with a modem and related equipment (the "Hardware"). You must also provide the type of telephone or cable service and Internet access service required by the Hardware and/or the web browser software (the "Browser Software"). Once the Hardware has been properly connected to the telephone or cable service, and any required Internet access has been established, you will be able to access Village Bank On-Line Banking through the PC banking service provider (the "Service Provider") that will act as an interface between you and Village Bank. You are and will remain solely responsible for the purchase, hookup, installation, loading and maintenance of the Hardware, the Browser Software, the telephone or cable service, and the Internet access service to your PC, and all related costs. You are responsible for any local or long-distance telephone charges or Internet Service Provider charges that you incur by accessing your accounts via Village Bank On-Line Banking. You are solely responsible for scanning the Hardware and the Browser Software for computer viruses and other related problems before you use them.

NEITHER WE, NOR ANY OF OUR SUBSIDIARIES, ANY SOFTWARE SUPPLIER NOR ANY INFORMATION PROVIDERS MAKE ANY WARRANTY, EXPRESS OR IMPLIED, TO YOU CONCERNING THE SOFTWARE, HARDWARE EQUIPMENT, BROWSER OR OTHER SERVICES INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OF FITNESS FOR PARTICULAR PURPOSE (OR NON-INFRINGEMENT OF THIRD-PARTY RIGHTS), UNLESS DISCLAIMING SUCH LIABILITY IS PROHIBITED BY LAW.

Your Right To Terminate This Agreement

You may cancel your participation in either Village Bank Internet Banking or Village Bank Internet Banking Bill Payment service at any time by providing us signed written notice by postal mail or fax. You must maintain Village Bank Internet Banking in order to utilize the Village Bank Internet Banking Bill Payment service; however, you may cancel the Village Bank Internet Banking Bill Payment service at any time. Your access to Village Bank Internet Banking will be suspended within three (3) Business Days of the Bank's receipt of your instructions to cancel the service. You will remain responsible for all outstanding fees, charges and pending transactions incurred but not yet charged to your account(s) prior to the date of cancellation. Upon termination of Village Bank Internet Banking services, you will have to enroll in Village Bank Internet Banking if you wish service to be reinstated.

The Bank’s Right To Terminate This Agreement

You agree that the Bank can terminate or limit your access to Village Bank Internet Banking, for any of the following reasons:

1. Without prior notice, if you have insufficient funds in any one of your Bank accounts. Village Bank Internet Banking may be reinstated, at our sole discretion, once sufficient funds are available to cover any fees, pending transfers, debits, etc.;
2. Upon three (3) Business Days notice, if you do not contact us to designate a new Primary Checking Account immediately after you close an existing Primary Checking Account;
3. If you do not login to Village Bank Internet Banking or have any transaction scheduled through Village Bank Internet Banking during any consecutive ninety (90) day period. If you wish to reinstate Village Bank Internet Banking and have not given us notice to terminate, you must contact the Bank;
4. You violate any term or condition of this Agreement;
5. You violate any provision of law wherein your use of Village Bank Internet Banking advances the commission of a crime;
6. Upon reasonable notice, for any other reason in our sole discretion

Electronic Mail

If you send the Bank an electronic mail message (e-mail), the Bank will be deemed to have received it upon its actual receipt or no later than the following Business Day as determined in the sole discretion of the Bank. The Bank will have a reasonable time to act on your e-mail.

You should NOT rely on e-mail if you need to communicate with the Bank immediately (for example, to report the loss, theft or unauthorized use of your password or an unauthorized transaction from your Bank account).

Communication Between the Bank And You

Unless this Agreement provides otherwise, you can communicate with the Bank in any one of the following ways during normal business hours ("normal business hours" are 8:30 AM to 6:00 PM (Eastern Time), Monday through Friday, and Saturday, 9:00 AM to 12:00 PM (Eastern Time), except banking holidays):