Business Online Banking (BOB) Terms and Conditions Agreement This agreement entered into between (“you” and “your”) and People’s Bank is to provide you with cash management services via Business Online Banking (BOB). The following terms and conditions contain the rules which govern the services provided by BOB. AGREEMENT People’s Bank will provide you access to the system which will report certain information on the accounts listed on your Enrollment Form. Additionally, BOB allows you to place stop payments, transfer money between certain People’s Bank accounts, originate a wire transfer of funds, and transmit a NACHA formatted ACH file. You will provide the necessary equipment, including but not limited to:  A Personal Computer  Internet Access (ISP Internet Service Provider)  Your Preferred Internet Browser (i.e. Internet Explorer) (Recommended: Internet Explorer 6.0 Service Pack 1 or higher)  Screen resolution of 800x600 or greater  Note: If you are using the Premier ACH feature, your personal computer will also require Microsoft .NET Framework Version 1.1 People’s Bank will provide to you the appropriate access to the system. You do not acquire any proprietary interest or rights therein as a result of its use of the service nor shall you copy or duplicate any materials provided by People’s Bank. ACCESS To use BOB, you must have at least one checking account at People’s Bank, access to Internet service and an e-mail address. Upon receipt of your signed Enrollment Form and Terms and Conditions Agreement, we will verify your account information and, if approved, establish a client account for BOB. Once established, we will send confirmation of enrollment to all users with supervisory rights. The supervisory user’s login ID will be sent by e-mail; the temporary password will be sent by US Mail. BOB can be used to access only the People’s Bank accounts which you have designated on your Enrollment Form. You can add or delete any of your bank accounts or authorized users from this Agreement by calling 541-776-5350. Access to your accounts through BOB will be based upon the identification of users and authority levels specified by you in your Enrollment Form. Each non-supervisory user’s login ID will be sent by email; the temporary password will be sent by US Mail. We undertake no obligation to monitor transactions through BOB to determine that they are made on behalf of the account holder. SERVICES You can use BOB to check the balance of your People’s Bank accounts, view account histories, transfer funds between your People’s Bank accounts, make stop payment requests, and view images of checks from your People’s Bank accounts.

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HOURS OF ACCESS You can use BOB seven days a week, twenty-four hours a day, although some or all BOB services may not be available occasionally due to emergency or scheduled system maintenance. We agree to post notice of any extended periods of nonavailability on the People’s Bank website. CHANGE IN TERMS People’s Bank may add to, modify or replace the computer program for BOB at its sole discretion and without notice, provided services rendered to you are not negatively affected or obligations altered. From time to time People’s Bank may deem it necessary to hold training or retraining for you. You agree that you will require appropriate personnel to participate in such training. YOUR PASSWORD For security purposes, you are required to change your password upon your initial login to BOB. 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. YOU SHALL ASSUME THE ENTIRE RESPONSIBILITY AT ALL TIMES FOR THE SUPERVISION, MANAGEMENT, CONTROL AND CONFIDENTIALITY OF YOUR PASSWORD AND ASSUME THE ENTIRE RISK FOR THE FRAUDULENT OR UNAUTHORIZED USE OF YOUR PASSWORD. YOU UNDERSTAND THAT FAILURE TO PROTECT YOUR PASSWORD MAY ALLOW AN UNAUTHORIZED PERSON OR ENTITY TO ACCESS BOB. You agree to develop and put into place internal procedures to limit such risk, including, among other things: (a) changing your password at least once every 90 days; (b) changing your password each time an employee who had access to the password leaves your company or is reassigned; and (c) keeping your password under secure conditions. You also agree to notify us immediately if you know or suspect that the confidentiality of your password has been breached. Upon three unsuccessful attempts to use your password, your access to BOB will be revoked. To re-establish your authorization to use BOB, you must contact us to have your password reset or to obtain a new temporary password. We recommend that you create a password that utilizes both upper and lower case letters and numbers for purposes of security. Your password should not be associated with any commonly known personal identification such as social security number, address, date of birth or names of children and should be memorized rather than written down. SECURITY You understand the importance of your role in preventing misuse of your accounts through BOB and you agree to promptly examine your paper statement for each of your People’s Bank accounts as soon as you receive it. You agree to protect the confidentiality of your account and account number as well as your personal identification information such as your driver's license number and social security number. You understand that personal identification information by itself or together with information related to your account may allow unauthorized access to your account. Your password and login ID are intended to provide security against unauthorized entry and access to your accounts. Data transferred via BOB is encrypted in an effort to provide transmission security and BOB utilizes identification technology to verify that the sender and receiver of BOB transmissions can be appropriately identified by each other. Notwithstanding our efforts to ensure that BOB 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 monitored and read by others. We cannot and do not warrant that all data transfers utilizing BOB, or e-mail transmitted to and from us, will not be monitored or read by others. SERVICES DETAIL Posting of Transfers - Transfers initiated through BOB before 5:00 p.m. (Pacific Standard Time) on a business day are posted to your account the same day. Transfers completed after 5:00 p.m. (Pacific Standard Time) on a business day, Saturday, Sunday or banking holiday will be posted on the next business day. BOB identifies transfers based upon the login ID of the user who made the electronic transfer. Accordingly, you understand and acknowledge that the View Postings screen in the Transfer menu option of BOB may not reflect transfers made by multiple users from the same

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account if different login IDs are used. 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. Overdrafts (Order of Payment, Transfers and other Withdrawals) – If your account has insufficient funds to perform all electronic funds transfers you have requested for a given business day, then: (a) electronic funds transfers involving currency disbursements, like ATM withdrawals, will have priority; (b) electronic funds transfers initiated through BOB which would result in an overdraft of your account may be cancelled at our discretion; (c) in the event the electronic funds transfers initiated through BOB which would result in an overdraft of your account are not cancelled, overdraft charges will be assessed pursuant to the terms of the deposit agreement for that account. Limits on Amounts and Frequency of BOB transactions – The number of transfers from People’s Bank accounts and the amounts which may be transferred are limited pursuant to the terms of the applicable deposit agreement and disclosure for those accounts. 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 - Stop payment requests must precisely identify the name of the payee, the check number, the amount and scheduled date of the payment. It is not possible to stop or cancel a payment which is completed (processed). You may initiate stop payment requests online via BOB only for paper checks you have written on your People’s Bank accounts. To be effective, this type of stop payment request must precisely identify the name of the payee, the check number, the amount and the date of the check. All stop payments incur stop payment charges as disclosed in the current fee schedule for the applicable account. Stop payments initiated online are only valid for fourteen days. Please come to the Bank to sign a stop payment agreement to extend the expiration date to 180 days. Disclosure of Account Information and Transfers - You understand information about your accounts or the transfers you make may automatically be disclosed to others. For example, tax laws require disclosure to the government of the amount of interest you earn, and some transactions, such as large currency and foreign transactions, must be reported to the government. We may also provide information about your accounts to persons or companies we believe would use the information for reasonable purposes, such as when a prospective creditor seeks to verify information you may have given in a credit application or a merchant calls to verify a check you have written. In addition, we routinely inform credit bureaus when accounts are closed because they were not handled properly. We may also seek information about you from others, such as the credit bureau, in connection with the opening or maintaining of your account or in connection with approving your access to the system. You agree and hereby authorize all of these transfers of information. Periodic Statements - You will not receive a separate BOB statement. Transfers to and from your accounts using BOB will appear on the respective periodic paper statements for your People’s Bank accounts. RESPONSIBILITIES A person with supervisory rights is responsible for requesting User IDs for your officers and employees to access BOB. People’s Bank will provide you with User IDs and temporary passwords. You agree to notify People’s Bank promptly in writing of any supervisor changes. This notification must be delivered in person or by US Mail to 750 Biddle Road, Medford, OR. 97504. People’s Bank shall not be responsible for any losses or damages caused by any person(s) authorized to access the system prior to receipt of such notice from you and a reasonable opportunity to act on such notice. If you have reason to believe that any security procedures or codes have or may have become known by unauthorized persons (whether or not employed by you), you shall immediately notify People’s Bank within 24 hours at (541) 7765350. People’s Bank will replace the security procedures and codes in accordance with People’s Bank’s security requirements. You shall be solely liable for funds transfer instructions and other communications initiated before People’s Bank has received such notice and has had a reasonable opportunity to act on such notice. People’s Bank reserves the right to change any or all of the security procedures and codes at any time by giving telephone or written notice to you at the address/phone number indicated on this agreement. You and People’s Bank represent, warrant, and mutually agree that all information concerning the other party or parties which comes into its possession in connection with any online banking service including software, user guides, security Rev 7/1/2008

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procedures, or any security codes will be maintained as confidential and shall not be used or divulged to any other party except as may be necessary or advisable for the due performance of any of the services or as required by applicable law. You are solely responsible for the establishment and maintenance of procedures within your respective company to ensure the confidentiality of security procedures and codes. People’s Bank will take reasonable precautions to ensure that your information in the online banking system will remain confidential and protected from unauthorized access by third parties. There shall be a presumption that People’s Bank has satisfied the foregoing obligation if People’s Bank has adhered to its regular security procedure. People’s Bank will make every effort to meet established schedules. People’s Bank shall not be responsible for machine errors or data processing equipment failures, from whatever cause. People’s Bank shall have the right to delegate its duty to perform services hereunder to an appropriate third party as determined by People’s Bank in its sole discretion. This right of delegation, however, shall be limited to situations where People’s Bank’s data processing equipment is inoperable or other conditions beyond People’s Bank’s control make it either temporarily or permanently impossible for People’s Bank to perform hereunder. While People’s Bank shall have the right to delegate its duty to perform under this Agreement, it shall be under no duty to do so. People’s Bank will honor your transactions and instructions only when you have complied with these Terms and Conditions. People’s Bank will be under no obligation to honor, either in whole or in part, any transaction or instruction that: (a) exceeds your collected and available funds on deposit with People’s Bank; (b) is not in accordance with any condition indicated by you and agreed to by People’s Bank; (c) People’s Bank has reason to believe was initiated by a user not authorized by you; (d) involves funds subject to a hold, dispute, or legal process preventing their withdrawal; (e) would violate any provision of any present or future risk control program of the Federal Reserve or any current or future rule or regulation of any other federal or state regulatory authority; (f) is not in accordance with any other requirement stated in these Terms and Conditions or any People’s Bank policy, procedure or practice; or, (g) for the protection of People’s Bank or you, People’s Bank has reasonable cause not to honor. FEES AND CHARGES You agree to pay the fees and charges for your use of system services as set forth in the current fee schedule. You agree that all such fees and charges will be deducted from the checking account designated as the "Primary Checking Account" on your Enrollment Form. If you close your Primary Checking Account, you must contact us immediately to designate another account as your Primary Checking Account. You agree to pay any additional reasonable charges for services you request which are not covered by this Agreement. You are also responsible for telephone and Internet service fees you incur in connection with your use of the system. GENERAL PROVISION The laws of the State of Oregon shall govern these Terms and Conditions. BANK’S POLICIES AND PRACTICES WITH RESPECT TO PROTECTING CONFIDENTIALITY AND SECURITY OF NONPUBLIC PERSONAL INFORMATION:

We restrict access to nonpublic personal information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. By using the site, you agree that all access and use of the site and its contents are at your own risk. You acknowledge that we specifically disclaim any liability (whether based in contract, tort, strict liability or otherwise) for any direct, indirect, incidental, consequential, or special damages arising out of, or in any way connected with, your access to or use of the site (even if we have been advised of the possibility of such damage). This includes liability associated with any viruses that may infect a user’s computer equipment. You agree to indemnify, defend, and hold People’s Bank individually and collectively, including their subsidiaries, directors, officers, employees, agents, and assignees, harmless from and against Rev 7/1/2008

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any damage, loss, or liability of any kind, including without limitation, reasonable attorney's fees and court costs which result directly or indirectly, in whole or in part, from the online banking services, except those which may be caused by People’s gross negligence. In no event shall People’s Bank be liable for any interruption of transmissions, equipment failure, war, emergency conditions, consequences of any equipment breakdown or malfunction, or other circumstances beyond People’s Bank’s control, nor for the consequences of error in any encoding, keypunching, data, or other instructions furnished by you, nor shall People’s Bank be liable under any circumstances for consequential damages or punitive damages. Your Right to Terminate - You may cancel your online banking service at any time by providing us with written notice by US Mail or fax. Your access to BOB will be suspended within three business days of our receipt of your instructions to cancel the service. You will remain responsible for all outstanding fees and charges incurred before the date of cancellation. Our Right to Terminate - You agree that we can terminate or limit your access to BOB for any of the following reasons: 1. Without prior notice if you have insufficient funds in any one of your People’s Bank accounts. BOB may be reinstated, at our sole discretion, once sufficient funds are available to cover any fees, pending transfers, and debits. 2. Upon three business days' notice if you do not contact us to designate a new Primary Checking Account immediately after you close your Primary Checking Account. 3. Upon reasonable notice for any other reason at our sole discretion. These Terms and Conditions (including the Exhibits attached hereto) constitute the entire agreement between People’s Bank and you with respect to the subject matter hereof and supersedes any prior agreements or representations between People’s Bank and you with respect to such subject matter and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements.

Company Name: __________________________________________ Phone Number: ______________________ Address:

___________________________________________________________________________________

By: ______________________________________ Signature

By: _____________________________________ Signature

Title:_____________________________________

Title:____________________________________

Date:______________________________________

Date:____________________________________

People’s Bank (to be completed by branch personnel) Representative:_____________________________

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Summary of Services A.

Balance Inquiry You may access information on authorized depository accounts. Information provided may include ledger balance, available balance, float balances and any debits and credits since last bank statement.

B

Electronic Transfer You may transfer funds between authorized accounts at People’s Bank. The balance that is being transferred cannot exceed the available balance in the account being debited.

C.

Stop Payment You may issue stop payment orders on items drawn on authorized account(s) at People’s Bank. People’s Bank will be afforded a reasonable time of not less than one full business day in which to act on any stop payment order. You may print out the information electronically transmitted to establish or renew a stop payment order to serve as a written stop payment order.

D.

Domestic Wire Transfer of Funds People’s Bank may make a wire transfer of funds on your behalf upon instructions received electronically from you. Wire transfer instructions received prior to People’s Bank’s cutoff deadline of 1:00 PM on a business day will be processed the same day. Otherwise, People’s Bank may treat the instructions as received on the next business day. In the event a wire transfer is rejected and returned, People’s Bank shall have no obligation to retransmit the wire if People’s Bank originally executed the transfer according to the instructions received. In this event, you shall be notified and it shall be your responsibility to resubmit the instructions. The feature requires that a signed Wire Transfer Agreement be on file with People’s Bank.

E.

ACH File Transmission You may initiate a transfer of a NACHA formatted ACH file. The feature requires that a signed ACH Origination Agreement be on file with People’s Bank and is subject to credit approval.

F.

Security People’s Bank shall provide you with a User ID, used in conjunction with the password established by you, to access BOB allowing you to set up individual user security.

G.

Bill Payment / Payroll Services You can sign up for bill payment and/or payroll services for your business. With business bill pay you can do the following: pay from multiple accounts, email payments, inter-bank transfers, add memo and comment fields, setup bill payment reminders, categorize your payees, enable dual signature authorization, add customer specific security features, and pay your taxes.

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BUSINESS DAY Business day is a day People’s Bank is open to the public for carrying on substantially all of its business (other than Saturday, Sunday or the following legal holidays). New Year’s Day……………………………..…………….………………….……...January 1 Martin Luther King Jr., Day……………………………………………………….3rd Monday in January Presidents’ Day………………………………………………………………………3rd Monday in February Memorial Day…………………………………………………………………….….Last Monday in May Independence Day…………………………………………………………………..July 4th Labor Day…………………………………………………………………………...1st Monday in September Columbus Day……………………………….………………………………….…..2nd Monday in October Veterans’ Day………………………………………………………………….…….November 11th Thanksgiving Day……………………………………………………………….…..4th Thursday in November Christmas Day…………………………………………………………………….…December 25th

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