Alerus Financial Online Banking Agreement I. Introduction Thank you for choosing Online Banking with Alerus Financial! This Online Banking Agreement (the "Agreement") explains the terms and conditions governing the use of Alerus Financial's Personal Online Banking Services. All Internet Banking Services of any kind offered by Alerus Financial will be referred to collectively as "Services" in this Agreement. The Agreement also contains the terms and conditions governing the Services. The terms and conditions of your deposit agreements and disclosures for each of your accounts at Alerus Financial as well as your other agreements with Alerus Financial such as loans, continue to apply notwithstanding anything to the contrary in this Agreement. II. Definitions As used in this agreement, the following words have the meanings given below. "Online Banking Services" and "Services" means the services provided pursuant to this Agreement. "Eligible Accounts" Each Alerus Financial product that you have with us is called an Eligible Account and includes deposit accounts, savings accounts, time accounts and loans, including lines of credit. All eligible accounts will be linked by means of the tax identification number (i.e., social security number) This means that you will be able to view and access any accounts for which you are a co-owner or authorized signer. Certain accounts with restricted access will not be allowable as Eligible Accounts. "We," "us," "our" and "Alerus Financial" are used to refer to Alerus Financial, N.A., the depository institution that holds one or more accounts accessed by the Service. "You" or "your" is used to refer to each person who applies or is authorized by you to use the Services. "Business Day" means Monday through Friday, except banking holidays. "Electronic Funds Transfers" means ATM withdrawals, preauthorized transactions, point of sale transactions, transfers to and from your account with us using Online Banking Services. III. Access to Service In order for you to use the Services described in this Agreement, you must have at least one Eligible Account with us and access to Internet service. Alerus Financial customers can register online by selecting the "Accept" button at the end of this Agreement. To register online you must then complete all required information fields on the enrollment form. By completing the online enrollment form, you authorize us to treat your enrollment form as if it had been in writing and signed by you. Once we have received your enrollment form online and verified your account information, we will send you by e-mail a confirmation of our acceptance of your enrollment. Upon acceptance, a password will be mailed by postal mail within 72 hours if the enrollment form is received prior to 4:00 P.M. CST or within 48 hours if received after 4:00 P.M. CST. All Eligible Accounts which you have with Alerus Financial will be linked to your Online Banking Services. If you would like an account removed from your Eligible Accounts, please contact us at contact us at 701.795.2662 in Grand Forks, ND, at 701.280.5151 in Fargo/West Fargo, ND, or by calling 1.800.279.3200, ext 2662. You agree that we may send confidential mailings, including your temporary password, to the current address shown in our records for your primary checking account. You further agree that we will not be responsible or liable to you in any way in the event that such properly addressed information is intercepted by an unauthorized person, either in transit or at your place of residence. IV. Security and Use of Your Password We are committed to protecting the security and confidentiality of our customer account information. We take measures to protect confidentiality and security of your account. We use several different methods to ensure this security and protect your account information. You can only access Online Banking with certain browsers that have a high security standard. Acceptable browsers include either Internet Explorer 5.5 or greater or Netscape Navigator 6.2 or greater, with 128-bit encryption. You will be required to select two Security Questions and Answers at the time of enrollment. We will use this information to verify your identity at the time you call us with a request, such as reactivating your access with a temporary password. You will be issued a user ID and password to login to the system. Both your user name and password are case-sensitive and should be between 8-16 characters in length. Your access will be further enhanced using multifactor authentication. Multifactor authentication is a combination of something you know (your user ID and password) and something you have (personal image and pass phrase). Upon first login, you will be required to select an image, pass phrase, and additional challenge questions. Successful login will require your user ID, password, and verification of image and pass phrase. In addition, you will have the option to identify the computer you regularly use as your primary computer for login authentication, which will streamline the authentication process. When you access online banking from a computer not registered by you, you will be asked an additional challenge question to confirm your identity. If no action is taken for 10 minutes, you will automatically be logged off Online Banking Services. Your account will be locked out for 30 minutes after 5 invalid signon attempts. This will count as 1 lockout. Your account can be locked out temporarily (30 minutes) a total of 2 times. After the 2nd temporary lockout, you will be permanently locked out and will need to contact us at contact us at 701.795.2662 in Grand Forks, ND, at 701.280.5151 in Fargo/West Fargo, ND, or by calling 1.800.279.3200, ext 2662. To change your password at a later date, click on the Options button and select Change Password. Your password must include at least one alpha and one numeric character. Your password should not be associated with any commonly known personal identification. You will also be able to change your image, pass phrase, or challenge questions by clicking the Options button and selecting change security options. You may also call us at 701.795.2662 in Grand Forks, ND, at 701.280.5151 in Fargo/West Fargo, ND, or by calling 1.800.279.3200, ext 2662 for assistance. We also urge you to take measures to protect your access information (user ID, password and enhanced security features). You agree not to allow anyone to gain access to the Services or to let anyone know your access information used with the Service. You agree to assume responsibility for all transactions initiated through the Service with your User ID and password, up to the limits allowed by law. We have no responsibility for establishing the identity of any person or determining the validity of any transaction received using your User ID and password. You will be responsible for the enhanced security by confirming your image and pass phrase as well as answering challenge questions as required to access online banking functions. You also agree never to leave your account information displayed in an area accessible to others and to never leave your PC unattended while using Online Banking Services. We will not be liable for and will not reimburse you for any losses that may occur as a result of the use of your User ID and password. You agree to notify us immediately if you suspect that any of your security information has become known to any unauthorized person at contact us at 701.795.2662 in Grand Forks, ND, at 701.280.5151 in Fargo/West Fargo, ND, or by calling 1.800.279.3200, ext 2662. V. Online Transactions Types of Online Transactions You can use Online Banking to check the balance of your accounts, place stop payments, view account histories, transfer funds among your accounts Scheduling Transfers You may schedule a transfer to be initiated on the same day, or any future calendar day or to be automatically initiated in a fixed amount on a recurring basis (weekly, monthly, quarterly, annually, etc.) between your Eligible Accounts. Transfers may be made in any amount not exceeding the available balance plus the undisbursed line of credit in your Eligible Account from which the transfers are made. To change a Scheduled Transfer, click the "Accounts" button then click on the account that is scheduled to make the transfer. Click the "Transfers" button then select the transfer you want to change from the "To Account" column of the list provided. The following options can be changed: · The frequency can be changed by selecting another frequency from the drop-down list box. · The Transfer Amount. · The Transfer Date. · The Number of Remaining Payments. · The Description of the Transfer. Click the "Update" button to complete your request Stop Payments – Checks Only To place a stop payment on a check, select the account that you want by clicking on the account number, then click on the "Stop Payment" button. Enter the amount of the transaction in the Amount field. Enter the valid check number in the Number field. Click on the "Submit" button to send the stop payment to the bank. You will receive a confirmation receipt. The stop payment will immediately be placed on your account for a period of fourteen days. You will receive a letter within a few days that needs to be signed and returned to the bank in order to keep the stop payment in place for 6 months. There will be an $18 fee assessed to your account for the stop payment. I agree to hold Alerus Financial harmless for all expenses and costs incurred by the bank on account of refusing payment of the above described check, and agree not to hold the bank liable on account of payment contrary to this request if the same occurs through inadvertence, accident, or oversight. I understand that this order will automatically expire in 18 days unless renewed in writing. If unsure of exact check number, or if the transaction you want to stop is not a check, please contact our Customer Care Center at contact us at 701.795.2662 in Grand Forks, ND, at 701.280.5151 in Fargo/West Fargo, ND, or by calling 1.800.279.3200, ext 2662. Limits on Amounts and Frequency of Online Transactions Your ability to transfer funds between and/or make payments from certain Eligible Accounts is limited by law and are outlined in your deposit account agreement. You may make no more than six transfers per statement period from your Savings and Money Market Savings Accounts by preauthorized or automatic transfer or by telephone or Online Banking. In the case of Money Market Accounts, no more than three of the six permitted transfers may be by check, draft or debit card. Hours of Operation Online Banking Services are available 24 hours a day, seven days a week, except during special maintenance periods. We cannot guarantee that services will always be available as a result of occasional emergency situations or scheduled maintenance. We agree to post notice of any extended period of non-availability on our website. Specific times and deadlines may be applicable to specific aspects of the Service under this Agreement. Posting of Transfers One-time transfers initiated through Online Banking Services before 11:00 p.m. Central Standard Time (CST) on a business day are posted to your account the same day. One-time transfers completed after 11:00 p.m. CST on a business day, Saturday, Sunday or banking holiday, will be posted on the next business day. Scheduled transfers initiated through Online Banking Services before 6:00 p.m. CST on a business day are posted to your account the same day. Scheduled transfers completed after 6:00 p.m. CST on a business day, Saturday, Sunday or banking holiday, will be posted on the next business day. E-Mail or Communications between Alerus Financial and You Unless this Agreement provides otherwise, you can communicate with us in any of the following ways: · E-mail You can contact us by e-mail by using the Contact Us button at the bottom of the web page or send e-mail to Support@alerusmail.com. · Telephone You can contact us by telephone contact us at 701.795.2662 in Grand Forks, ND, at 701.280.5151 in Fargo/West Fargo, ND, or by calling 1.800.279.3200, ext 2662 · Facsimile You can contact us by fax at 701.795.2652 · Postal Mail You can write us at: Alerus Financial, Attn: Customer Care Center, P.O. Box 6001, Grand Forks, ND 58206-6001 · In Person You may visit us in person at any one of our locations. A list of our locations is available on our home page under the heading "Inside Alerus". · In general, communications sent over the public Internet are not necessarily secure. Therefore, we will not send, and we strongly suggest that you do not send, any confidential account information unless using the electronic communications option provided in our Online Banking Services. We will not respond to account information related questions sent via Internet e-mail. You agree that we may take a reasonable time to act on any e-mail. Correspondence that requires immediate handling, for example, if you need to report an unauthorized transaction from one of your accounts, or if you need to report a lost or stolen password, should be made by calling the Bank. You agree to receive communications regarding your Account, including change-in-terms notices regarding Online Banking Services electronically. Any e-mail sent to you by us shall be considered received by you when they have been made available to you. X. Change in Terms We may change any term of this Agreement at any time. If the change would result in increased fees for any Online Banking Services, 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 funds transfer system. We will post any required notice of the change in terms on our website or forward it to you by e-mail or postal mail. If advance notice of the change is not required, and disclosure doe not jeopardize the security of the account or our electronic fund transfer system, we will notify you of the change in terms within 30 days after the change becomes effective. Your continued use of any or all of the subject Online Banking Services indicates your acceptance of the change in terms. XI. Termination A. Your Right to Terminate: You may cancel your Online Banking Services at any time by contacting us using one of the methods outlined in Section IX and providing us with your name, address, whether you are discontinuing Online Banking Services, and the effective date to stop the Services. We will verify your identity by utilizing the Security Questions and Answers you selected upon enrollment. B. Our Right to Terminate: You agree that we can terminate this Agreement and your use of Online Banking Services in whole or in part at any time without prior notice. We will promptly notify you if we terminate this Agreement or your use of the Services for any reason. C. Termination for Inactive Accounts: If you do not access your Eligible Accounts via the Online Banking Services for any three (3) month period, we may terminate your Services. XII. Electronic Fund Transfer Provisions for Customers Applicability The provisions in this section apply only to electronic fund transfers that debit or credit a consumer's checking or savings accounts and are subject to the Federal Reserve Board's Regulation E (an "EFT") and Regulation D. Your Liability Tell us at once if you believe your password has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit). If you tell us within 2 business days, after you learn of the loss or theft of your password, you can lose no more than $50 if someone used your password without your permission. If you do not tell us within 2 business days after you learn of the loss or theft of you password, and we can prove we could have stopped someone from using your password without your permission, you could lose as much as $500. Also, if your statement shows transfers that you did not make, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If your delay in notifying us was due to extenuating circumstances, we will extend the times specified above to a reasonable period. 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 for your losses or damages. However, there are some exceptions. We will not be liable, for instance: · If, through no fault of ours, you do not have enough money in your account to make the transfer. · If any electronic terminal, telecommunication device or Online Banking Services is not working properly, and you knew about the problem when you started the transfer. · If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken. · If a legal order directs us to prohibit withdrawals from the account. · If your account is closed, or if it has been frozen. · If you, or anyone authorized by you, commits any fraud or violates any law or regulation. · If you have not properly followed the scheduling instructions on how to make a transfer or payment included in this Agreement. · If you have supplied us with inaccurate information regarding a bill payment. · There may be other exceptions stated in this Agreement or other agreements with you. Errors and Questions If you believe there has been an error related to an Online transaction, you have a question about an Online transaction, you think you statement or receipt is wrong or you need more information about an Online transaction listed on the statement or receipt, please contact us at the telephone number or address listed in Section IX of this agreement as soon as you can. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared. · Tell us your name and account number · Describe the error or transfer you are unsure about, and explain as clearly as possible why you believe it is an error or why you need more information. · Tell us the dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days. We will determine whether an error occurred within 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 45 days to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days for the amount you think is in error, so that 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 within 10 business days, we may not credit your account. We will tell you the results within three business days after completing our investigation. If we decide that there was not error, we will send you a written explanation. You may ask for copies of the documents we used in our investigation by contacting us at the telephone number or address listed in this agreement. Disclosure of Information to Third Parties We will disclose information to third parties about your account or the transfers you make: · Where it is necessary for completing transfers; or · In order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant; or · In order to comply with government agency or court orders; or · If you give us written permission. XIII. Limit of Our 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 the Online Banking Services provided to you under this Agreement. We do not and cannot warrant that Online Banking Services will operate without errors, or that all Services will be available and operational at all times. We are not responsible for any direct, indirect, special, incidental or consequential damages arising in any way out of your use of Online Banking Services provided under this Agreement. XIV. Fee Schedule Alerus Online Alerus Financial offers the benefits and convenience of the Alerus Personal Online Banking Services to our personal customers at no cost. XIV. General Other Agreements In addition to this Agreement, you agree to be bound by and comply with the requirements of the agreements applicable to each of your Eligible Accounts. Your use of the Services is your acknowledgment that you have received these agreements and intend to be bound by them. You should review other disclosures provided to you when you opened your accounts with us. Entire Agreement This Agreement, as it may be amended from time to time, contains the entire understanding between you and Alerus Financial concerning the Online Banking Services. If any provision of this Agreement is found to be unenforceable according to its terms, all remaining provisions will continue in full force and effect. Governing Law This Agreement and the Services are governed by the laws of the State of North Dakota and applicable federal law, without regard to any different state laws that may govern your Eligible Accounts.