Online Banking and Bill Pay Agreement

A. GENERAL RULES

1. Access

By accessing Somerset Savings Bank's Online Banking service, you agree to the following terms and conditions within this Online Banking and Bill Payment Agreement (the "Agreement"). Your consent to the terms and conditions of this Agreement is given each time you log on to the service using your Logon ID and Password. In addition, by using the Online Banking service you consent to the secure electronic transmission of your personal financial information.

In order to authorize use of these services you must be an account owner. An account owner owns an individual account with only one name or is a joint owner of an account that is held by two or more parties. If you are a joint account holder, you agree that each account holder is authorized to access all of the funds held in that account. We are authorized to process any transactions that any owner may execute using the password established for the account. The use of the password will have the same binding effect as your signature. An account is defined to mean your Checking Account, Money Market Deposit Account, Statement Savings Account, Passbook Savings Account, Christmas Club, Vacation Club, Certificate of Deposit Account (CD), and Retirement Account or Loan Account that you may have with us, hereafter referred to as "Account" or "Accounts".

Any rules which are applicable under your deposit contract with Somerset Savings Bank, as disclosed in the Deposit Account Disclosure and signature card provided to you when you opened your Account with the Bank, will also be applicable to Online Banking.

Business days include every day other than Saturday, Sunday and Federal Holidays.

2. Computer Requirements

In order to utilize Online Banking, you will need a personal computer and related equipment. You are responsible for maintaining your computer equipment and to utilize the Internet Web browsers that the Bank supports. The Bank will not be responsible for any malfunction, virus or other conditions that may occur with the personal computer you use to access these services. The Bank suggests that you obtain one of the many virus protection programs that are readily available from many commercial vendors.

Currently the Bank supports Internet Explorer versions 5.5 or greater and Netscape Communicator 4.72 or greater.

The system is designed to accept 128-bit encryption, the most powerful encryption security technology available on the Internet today. If your browser is not already setup with 128-bit encryption to access this site, you must go to either the Microsoft or Netscape web site and download the 128-bit encryption browser version, or contact your Internet Service Provider (ISP) for further instruction.

While using Online Banking there are a few things the Bank would like to bring to your attention:

• You can save bookmarks that point only to the first page or the logon page. You cannot save bookmarks to other pages after you have logged on.
• DO NOT use your browser's Back button after you have logged on. Doing so can interrupt your banking session.
• Changing the size of your browser's window after you have logged on triggers some browsers to reload the data, which may disrupt your banking session.

3. Password Security

You agree not to give your password to any third party, who is not an owner of the Account. This password is designed to protect your Accounts with the Bank and provide you with security to protect your Account information.

The password, in connection with Online Banking, acts as your signature for the Accounts you have with us. All electronic communications that are authenticated by this password will be valid and shall have the same effect as your written and signed paper authorizations.

If you don't follow these recommended practices, and you give your Logon ID number and password to another individual, you are giving that individual the ability to review the balances and transaction history on any and all account(s) upon which you are the owner, regardless of whether they are a party to the account(s). In addition, the ability to transfer funds and use the Bill Payment Services will also be available if your account(s) have been set up for those functions. This is applicable to all accounts you currently have with the Bank as well as all account(s) you may open in the future. The Bank cannot be held responsible if you do not take appropriate steps to protect your Logon ID and password.

If you believe that someone has obtained your password and/or someone has attempted to use it, or someone has initiated an unauthorized transfer, you must notify the Bank promptly. The Bank can be notified by calling (732) 560-1700 during normal business hours 8:30 AM to 4:30 PM Monday through Wednesday and 8:30 AM to 6:00 PM Thursday and Friday.

4. Limitations and Restrictions

Your rights to Online Banking may be denied if you do not logon with the correct Logon ID and/or Password. You will be denied access if you exceed the maximum number of failed attempts while accessing this service. For security reasons the number of attempts is not disclosed.

5. Account Services

Online Banking allows you to review all Accounts you have with the Bank on which you are the Account owner.

You can see specific transactions such as debits, credits, transfers, interest paid for the period and year-to-date interest paid by following the easy step-by-step procedures as outlined in our help screens. Account balances are current however the balance may not reflect all current transactions; for example, the processing of ATM transactions may be limited to the processing time for ATM networks and therefore may not yet be posted to your account. Account history is available to you from the time of your last statement to a maximum of ninety (90) days.

Transfers may be made between eligible deposit products. Transfers may only be made to the extent there is a sufficient available balance in the Account from which you are transferring funds. The following rules apply to transfers:

• Transfers may be made between any checking, money market or statement savings accounts.

Federal Regulation restricts transfers from money market and statement savings accounts to six (6) per statement cycle. Refer to our Disclosure Statement on Federal Law Regulation "E" for further details.

• Transfers to and from passbook savings and certificates of deposit are not allowed.
• Transfers must occur prior to 8:00 PM to be posted to the same business day.
• All transfers posted after 8:00 PM will be posted the following business day.

Information on loans you have with the Bank is also available to you. You may use the Online Banking transfer option to make payments on Bank loans with funds from an eligible deposit account, provided the payment amount is equal to the payment due.

6. Bill Payment Services

Bill Payment Services are available to you via Online Banking 24 hours a day, 7 days a week. Access to the Bank's site is obtained by the ISP (Internet Service Provider) of your choice. Although the Bank takes prudent steps to assure access to our site and provide Online Banking, there are many events that are beyond the Bank's control, such as connectivity provided by your ISP. You agree to hold the Bank harmless in the event Online Banking is unavailable and transactions such as internal funds transfers and/or bill payments cannot be initiated. The following rules apply to Bill Payment Services:

A. You hereby authorize the Bank or its authorized agent to make payments on your behalf as directed by you, and to charge such payments from the designated checking account. You have identified in your Online Banking Application the checking account you wish to be debited. You may make a total of $10,000.00 per day in Bill Payment transactions.

B. Stop Payments. You may modify, stop or cancel any payment order of any one-time payment or on any pre-authorized automatic payment you have pending, up until 6:00 PM of the business day prior to the scheduled payment date. For payments input and scheduled for the current business day, you may modify, stop or cancel the payment as long as it still appears in your Payment Outbox. Once a payment has been processed, you may still be able to place a Stop Payment on it. If the payment was made by check, a Stop Payment may be placed as long as the check has not cleared. If the payment was made electronically a Stop Payment cannot be made. Please call the Bill Payment Service Center at 1-866-211-1506 for a determination.

C. To ensure that payees receive payments on the due date, you must schedule your payments 5 to 7 business days in advance of the due date. You understand that the Bank or its authorized agent will use reasonable efforts to ensure that payments reach creditors on time but the Bank cannot guarantee the time a payment will be posted by your creditor. You are responsible for any loss or penalty that you may incur due to lack of sufficient or available funds or other conditions that may prevent the withdrawal of funds from the Account.

D. The Bank will use its best efforts and ordinary care to follow all your payment instructions properly. However, we will not incur any liability if we are unable to make any payments due to the following reasons:

• The processing center and/or site is not functioning properly and we have advised you of such problems;
• The creditor does not allocate your payment correctly, although we provided the correct payee information specified by you;
• Your Account does not contain sufficient available funds at the time the payment is executed;
• The Bank has frozen your Account due to fraud, misuse, IRS levy or court order.

E. In the event you direct a bill payment debit and you do not have sufficient available funds in your checking account with us to cover such payment, your Bill Payment Service with us may be frozen or terminated.

F. All payments made by you through our Bill Payment Services will be shown on your monthly checking account statement, which is mailed to the address of record. You may also verify any debits, credits, transfers to and from your account by utilizing our Phone Banking Services, which are available to you 24 hours a day, 7 days a week by calling 1-800-420-1220.

G. Expedited Bill Payment. Expedited Bill Payment allows you to make an expedited payment to a payee. Depending on the recipient, payments may either be a same day electronic payment or a check sent overnight to the payee. Expedited payments must be effected by 7:45 P.M. EST. A convenience fee of $15.00 per payment will be charged to your Somerset Savings Bank checking account for each expedited payment made. Once you have requested an expedited bill payment transaction, you may not place a stop payment request on it. Expedited Bill Payments cannot be sent to an address in Hawaii, Alaska, or to a P.O. Box. All other conditions applicable to the Bank's Bill Payment Service are in effect over Expedited Bill Payment transactions except for those situations where the Expedited Bill Payment terms and conditions are in conflict. In those instances, the Expedited Bill Payment terms and conditions will apply.

H. Online Banking Service Fees. There are no fees for basic Online Banking, Transfer or regular Bill Payment services. Expedited Bill Payment transactions will be charged a convenience fee of $15.00 per payment. The Bank reserves the right to change the fees in the future with thirty (30) days advance notice.

I. Questions regarding the Bill Payment service, for example how to modify a payment, has a payment been received by the payee, etc. can be resolved by calling the Bill Payment Service Center 24 hours a day, 7 days a week, at 1-866-211-1506.

B. REQUIRED DISCLOSURES

1. In case of errors or questions about your transactions or if you think your statement is wrong or if you need more information about a transaction listed on the statement,

Telephone us at (732) 560-1700 or write us at:

Somerset Savings Bank, SLA
220 West Union Avenue
PO Box 220
Bound Brook, NJ 08805
Attn: Electronic Funds Transfer Dept.

We must hear from you no later than sixty (60) days after we sent you the FIRST statement on which the problem or error appeared. When doing so, you must do the following:

A. Tell us your name and account number.

B. Describe the error or the transaction you are unsure about and explain as clearly as you can why you believe it is an error or why you need more information.

C. Tell us the dollar amount of the suspected error.

We will investigate and determine whether an error occurred within ten (10) business days after we hear from you (twenty (20) business days if your complaint or question involves a transaction that occurred within thirty (30) days of the first deposit to your Account), and we 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 credit your Account within ten (10) business days for the amount you think is an error (twenty (20) business days if the transaction occurred within thirty (30) days of the first deposit to your Account), so that you will have use of the money during the time it takes us to complete the investigation.

If you initially call in your complaint or question, you must also submit it to the Bank in writing within ten (10) business days after your call. If we do not receive your complaint or question in writing within ten (10) business days, we may not re-credit your Account.

We will tell you the results of our investigation within three (3) business days after completing it. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation. If we credit your Account with the funds while investigating an error, you must repay those funds to us if we conclude no error has occurred.

The disclosure and investigation requirements, as disclosed on the previous page, are not applicable to commercial accounts.

2. Limitations on Electronic Funds Transfers

Federal regulation limits the number of electronic funds transfers you may make out of your Money Market Deposit Account or Statement Savings Accounts to a maximum of 6 per statement cycle. There will be a fee of $5.00 per transaction in excess of the limits permitted by Federal regulation.

3. Our Liability if we Fail to Make Certain Transfers

The following applies to Electronic Funds Transfers:

If we do not complete a transfer to or from your deposit account on time or in the correct amount, we will be liable for your losses or damages. We will not be liable for losses or damages, as provided in our Deposit Account Agreement with you or resulting from any of the following circumstances:

A. Through no fault of ours, you do not have sufficient funds in your deposit account to make the transfer;

B. You do not authorize a bill payment soon enough for your payment to be made and properly credited by the payee by the time it is due;

C. We make a timely bill payment but the payee nevertheless does not credit your payment by the time it is due;

D. Your computer or other Internet-access device was not working properly;

E. Circumstances beyond our control prevent us from making a transfer or payment, despite reasonable precautions that we have taken. Such circumstances include telecommunication outages or interruptions, postal strikes, delays caused by payees, fires and floods;

F. The money in your Account is subject to legal process or other encumbrance restricting the transfer or payment;

G. You do not give proper, complete or correct instructions for the transfer or payment, or you do not follow the procedures in this or any other agreement with us for requesting a transfer or payment;

H. The US Postal service causes a delay;

I. We have cancelled your Online Bill Payment Service;

J. We have reason to believe that you or someone else is using Online Bill Payment for fraudulent or illegal purposes; or

K. The funds required to effect a payment or transfer request consist of monies deposited in a form or by a method such that they are not yet available for withdrawal.

4. Limitations of our Liability

Unless otherwise required by law, we will not be responsible for any losses or damages, including direct, indirect, special or consequential losses or damages that you may incur from the use of Online Banking.

We will not be responsible for any losses or damages, including direct, indirect, special or consequential losses or damages, that you may incur from the use of the software or the equipment you use to access Online Banking.

We will not be responsible for any losses or damages, including direct, indirect, special or consequential losses or damages that you may incur because of a failure or delay in the delivery or processing of any payment made using Online Banking.

5. Liability for Unauthorized Transfers

A. If you notify the Bank within two (2) business days after learning of the loss or theft of your Password, your liability shall not exceed the lesser of $50 or the amount of unauthorized transfers that occur before notice to the Bank.

B. If you fail to notify the Bank within two (2) business days after learning of the loss or theft of your Password and we can prove we could have stopped someone from accessing your Account(s) without your permission if you had told us, you could lose as much as $500.00.

C. 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.

6. Federal Law Regulation "E"

Refer to the full Regulation "E" disclosure notice for complete details of your rights. The full Regulation "E" disclosure prevails over any other notifications or terminology within any other Bank document.

C. OTHER

1. Disclosure of Account Information

We will disclose information about your Account(s) or the transactions you make to third parties:

A. Where it is necessary to complete transactions;

B. To verify the existence and standing of your Account with us upon the request of a third party, such as a credit bureau;

C. In accordance with your permission;

D. In order to comply with court orders or government or administrative agency summons, subpoenas, orders, examinations and escheat reports, and/or;

E. On receipt of certification from a federal agency or department that a request for information is in compliance with the Rights to Financial Privacy Act of 1978.

2. Address Changes

You agree to notify the Bank promptly in the event your address on record with us changes.

3. Discontinuation of Service

You may terminate this Agreement at any time by advising the Bank in writing. Upon your written request termination of the Bill Payment Services under this Agreement will be effective within one business day of your request.

The Bank retains the right to terminate the services under this Agreement at any time for any reason without notice.

Upon termination of the Bill Payment services any transactions or payments which you have scheduled to occur on a future date or on a recurring basis will not be completed as scheduled.

4. Agreement Changes

We may change the above agreement at any time, but will give you written notice at least 30 days before the change becomes effective if the change will result in increased charges or liability to you or stricter limitations.

5. Governing Law

The Laws of the United States and the State of New Jersey govern this Agreement.

6. E-Mail

Internet e-mail is not a secure method of communicating confidential information. You are therefore agreeing to utilize our secure Message Service link, accessible only after logging on to the Bank's Online Banking Web Site, to communicate with us regarding your Account.

7. Other Agreements

This Agreement shall be in addition to any other agreement that you have with the Bank.