Business Disclosures

CNBconnect BUSINESS ONLINE BANKING AGREEMENT AND DISCLOSURE

1. Coverage. This Agreement applies to your use of our commercial Internet banking service (CNBconnect BUSINESS Online BankingĀ®), which permits you to access certain of your accounts with us via the Internet for services selected by you and agreed upon by us. In this Agreement, the terms "you" and "your" refer to the depositor on a commercial account accessible by CNBconnect BUSINESS Online Banking, and the terms "us," "we," and "our" refer to the Bank.

2. Enrollment/Application Forms. To establish CNBconnect BUSINESS Online Banking, you must complete certain enrollment forms or other documents ("Enrollment Forms") evidencing your desire to access your accounts using the CNBconnect BUSINESS Online Banking and identifying the specific accounts that will be accessible (the "Account(s)"). The specific services available to you are identified in your CNBconnect BUSINESS Online Banking Enrollment Forms. Your signature on the Enrollment Forms constitutes your agreement to the terms of this Agreement. Additional information relating to CNBconnect BUSINESS Online Banking is included in the on-line manual or instructions provided to you and such materials are incorporated into this Agreement by reference.

3. Your Responsibility. You are responsible for selecting all systems, hardware, your CNBconnect BUSINESS Online Banking provider and for any defect, malfunction or interruption in service or security due to hardware failure, your choice of CNBconnect BUSINESS Online Banking provider and systems and computer services. We have no responsibility or liability for same.
CNBconnect BUSINESS Online Banking IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED. USE OF THE SERVICE IS AT YOUR SOLE RISK. WE DO NOT WARRANT THAT CNBconnect BUSINESS Online Banking WILL BE UNINTERRUPTED OR ERROR FREE, NOR DO WE MAKE ANY WARRANTY AS TO ANY RESULTS THAT MAY BE OBTAINED BY USE OF CNBconnect BUSINESS Online Banking. WE MAKE NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, IN RELATION TO CNBconnect BUSINESS Online Banking.

4. Access Codes. You agree to identify, in your Enrollment Forms, a person to be your authorized Administrator. We will issue a Password or other access code ("Password(s)") to the authorized Administrator, which will allow the authorized Administrator to access all of the services available to you using CNBconnect BUSINESS Online Banking. You understand and agree that upon receipt of the initial Password by the authorized Administrator, the authorized Administrator will have full access to perform all of the services we provide to you over CNBconnect BUSINESS Online Banking. You understand and agree that the authorized Administrator also has the authority to assign Passwords to other persons, to identify the services that may be performed using each Password, and to amend and revoke assigned Passwords and the services that may be performed using the assigned Passwords.

5. Customer Liability. You are responsible for maintaining the confidentiality of the Passwords. You understand and agree that you are responsible for all transactions incurred using your Passwords. You agree to disclose Passwords only to those individuals authorized to use CNBconnect BUSINESS Online Banking or a particular level of service in CNBconnect BUSINESS Online Banking. Anyone to whom you disclose your Passwords and anyone who has access to your Passwords will have full access to the services you can perform on CNBconnect BUSINESS Online Banking, including full access to your Accounts. The person's authority will be limited only to the extent that the Password was established with limitations on the services that could be performed using that Password. We are entitled to presume that all communications containing proper Passwords are authorized by you and to act upon those communications, and you will be bound by any transaction performed by any person using that Password. You assume full responsibility and liability for the consequences of any misuse or unauthorized use of or access to CNBconnect BUSINESS Online Banking or disclosure of any confidential information or instructions of yours by your employees, agents or other third parties that gain access to your Passwords. The use of the Password as a security measure supersedes any other security procedures in agreements you have with us relating to funds transfers such as a wire transfer agreement or ACH Agreement.

6. Contact in Event of Unauthorized Access. Tell us at once if you believe any of your Passwords have been lost, stolen or otherwise available to an unauthorized person. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your Accounts (plus your maximum overdraft line of credit). If you believe your Password has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call (516)498-9111 or write CNBconnect BUSINESS Online Banking Administrator, Community National Bank, 200 Middle Neck Road, Great Neck, NY 11021.

7. Business Days. Our business days are Monday through Friday. The following holidays are not included as business days: New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgivings Day, Christmas Eve Day (PM only) and Christmas Day. We can process a fund transfer on the same business day as your instructions, if we receive your instructions before our CNBconnect BUSINESS Online Banking cut-off hour of 3:00 p.m. (Noon on Christmas Eve Day) on a business day. If we receive your instruction after the end of our business day, we process the transaction on our next business day. If you schedule a fund transfer for a future date, we process the transaction after the close of business on that date, if that day is a business day. If the date you request for a future transfer or payment is not a business day, we process the transaction on the business day immediately preceding the date you have requested. If you schedule a recurring funds transfer and the payment date does not exist in a month, the payment will be processed on the last business day of that month.

8. Functions. Using your Password and the CNBconnect BUSINESS Online Banking you can perform all of the functions described in the Enrollment Forms, in connection with the Accounts described in the Enrollment Forms, and you can:
a. view account information
b. transfer funds among your deposit accounts with us
c. transfer funds from your line of credit to your checking account with us
d. make payments out of deposit accounts to your loan accounts with us
e. initiate stop payment orders
f. transfer funds to accounts at other financial institutions
g. federal and state tax payments
h. Additional functions may be made available from time-to time, subject to the terms and conditions of this Agreement.
i. Subject to available funds, you may transfer funds using the CNBconnect BUSINESS Online Banking in any amount.
j. For security reasons, there are other limits on the number of transfers you can make using CNBconnect BUSINESS Online Banking.

9. Canceling Funds Transfers.
a. Canceling an Order. You may cancel or change a pending funds transfer by selecting and accurately completing the appropriate fields from the funds transfer menu at least 3 day(s) before the day the transaction is to be processed by us.
b. Preauthorized Transfers. If you tell us in advance to make a regular transfer at a regular time out of your Account without further action by you (a preauthorized transfer), you can stop these payments either by following the procedure in the preceding paragraph, or you can call us at (516)498-9111 or write us at CNBconnect BUSINESS Online Banking Administrator, Community National Bank, 200 Middle Neck Road, Great Neck, NY 11021, in time for us to receive your request three business days or more before the payment is scheduled to be made. If you call, we may also require you to put your request in writing in a form approved by us and get the form to us within 14 days after you call. We will require that you tell us the exact amount of the debit, the next date the debit is to be made and the exact name of the payee. If you stop payment of such a preauthorized transfer in accordance with the terms of this Agreement, we will stop the next debit and all subsequent preauthorized payments to that payee.
c. Our Rights. If we fail to cancel or stop any funds transfer, we have all of the rights given to us under our Deposit Account Agreement with you for failing to comply with a valid stop payment request as though the transfer request is a check.

10. Overdrafts. When you schedule a funds transfer using the CNBconnect BUSINESS Online Banking, you authorize us to withdraw the necessary funds from your designated Account with us. We deduct the amount of your funds transfer from your designated Account on the date we process your instruction. Each instruction to us to withdraw or transfer from an Account is an order to us to pay from that Account at that time or on a later date, if any, indicated in the instruction. We may charge payments against the Account even though the charge creates an overdraft, or we may refuse to make payments if the charge creates an overdraft. If you overdraw your Account, you agree to immediately pay us the overdrawn amount, together with any applicable fees. If the Account is maintained in connection with an overdraft credit plan, any overdraft will be made in accordance with the agreement or rules governing that Account rather than this Agreement.

11. Limitations on Transfers. Under federal regulations, you may make no more than six preauthorized electronic fund transfers and telephone transfers, including CNBconnect BUSINESS Online Banking transactions, checks and point-of-sale transactions per month from your savings or money market deposit account. Of these six transactions, you are limited to no more than three transactions per month by check, draft, debit card or similar order to third parties. Each fund transfer through CNBconnect BUSINESS Online Banking from your savings or money market deposit account is counted as one of the six limited transfers you are permitted each month. (However, payments to your loan accounts with us are not counted toward this limit for savings and money market deposit accounts.)
11.1 Account Holder(s) ("You") authorize Community National Bank ("us/we") to make any wire transfer(s) described on the wire transfer form (whether electronic in nature or written).
11.2 You agree to hold Community National Bank harmless from any loss that occurs if your instructions are incomplete, ambiguous, or incorrect. We are not required to seek clarification from anyone regarding ambiguous instructions. If we cannot complete a transfer (e.g., because of an ambiguity), we will notify you orally or in writing by the end of the next business day.
11.3 For security purposes, Community National Bank practices random telephone verifications for wire requests. Successful verification of these selected wires must be completed prior to processing the request. Therefore, it is important that your contact information on file with us is correct. You can check your contact information while logged into your account. First click Manage Accounts, then Change Settings. If your address or phone numbers are incorrect, please notify us as soon as possible by sending an electronic mail message or transmitting a signed fax to 516-498-8222.
11.4 If you identify the Beneficiary, the Beneficiary Bank, or an Intermediary Bank by name and number, payment of the order may be made based on the number alone, even if it identifies a person or bank different from that shown in your instructions.
11.5 We may transfer funds through an Intermediary Bank or funds transfer system that is different from that shown in your instructions.
11.6 If we receive your payment order after our processing ending hour, or on a weekend or holiday, we may process it on the next funds-transfer business day. A delay may also occur if an Intermediary Bank or the Beneficiary Bank is not accepting payment orders (e.g., due to a local holiday).
11.7 If your transfer is made from an account with us, it will be reflected on your next periodic statement. You will receive a callback confirmation from us regarding your transfer. You must confirm the wire transfer during the callback confirmation.
11.8 Foreign transfers may be subject to delays, charges imposed by other banks, and changes in foreign currency exchange rates.
11.9 We will not be liable for consequential, special, or exemplary damages or losses of any kind. We will not be liable for any failure to act or delay due to: a lack of sufficient available funds in your account; circumstances beyond our control; fire, flood, or natural disasters; communication failures; labor disputes; any inaccuracy or ambiguity in your instructions; the action or inaction of others; or any applicable government or funds-transfer system rule, policy, or regulation.
11.10 Customer may initiate Wire Transfers for Customer's account provided that (i) a completed Wire Transfer Agreement is in place with the bank (ii) all wire transfer requests reach the bank by 2:00 P.M. EST on the day the customer desires the transfer and (iii) that the account has sufficient collected funds to pay the requested transfer.
Indemnification
Customer acknowledges that Customer shall be fully responsible and liable for any transactions initiated under this Agreement. Customer acknowledges that Customer is in the best position to monitor the use of the Services, avoid errors in transmitting transactions through the use of the Services, protect the confidentiality and secrecy of the Passwords, and govern the authority given to each authorized user. Therefore, Customer agrees that the Bank shall have no duty or obligation to verify information submitted by Customer in using the Services or be responsible or liable for any unauthorized use of the Services, or errors in transactions initiated by Customer, except as may be caused by the gross negligence or willful misconduct on the part of the Bank. The Bank shall have no liability for performing its obligations herein if such failure to perform is a result of circumstances beyond the Bank's control. In no event shall the Bank be held liable for any consequential, exemplary, punitive, or special damages of Customer for any unauthorized use or error in transmitting a transaction initiated by Customer in using the Services. Customer agrees to indemnify and hold the Bank, its officers, directors, agents and employs harmless from all claims, demands, judgments, expenses, liability, causes of action and damages, arising out of Customer's use of the Services. These Indemnification Paragraphs shall survive termination of this Agreement.

12. Fees. We will charge you CNBconnect BUSINESS Online Banking fees, if any, identified in our current fee schedule, account information brochures and disclosures available from us, and as they may be amended by us from time to time, and otherwise in accordance with our Deposit Account Rules.

13. Periodic Statements. Your CNBconnect BUSINESS Online Banking account activity will appear on your periodic account statement. If there are no transfers in a particular month, you will receive statements at least quarterly.

14. Our Obligation to Make Transfers. We are not obligated to make any transfer:
a. If, through no fault of ours, your Account does not contain sufficient collected funds to make the transfer.
b. If the money in your Account is subject to legal process or other encumbrances restricting the transfer.
c. If the transfer would go over the credit limit on your overdraft credit plan, if any.
d. If a transfer system was not working properly and you knew about the breakdown when you started the transfer.
e. If circumstances beyond our control (such as fire, flood or power failure) prevent the transfer or use of CNBconnect BUSINESS Online Banking despite reasonable precautions that we have taken.
f. If incomplete or inaccurate information is forwarded to us by you or through an automated clearinghouse.
g. If you have not properly followed the instructions for using the CNBconnect BUSINESS Online Banking.
h. If your operating system is not properly installed or functioning properly.
i. For errors or failures from any malfunctions of your browser, CNBconnect BUSINESS Online Banking provider, computer, computer virus or other problems relating to the computer equipment you use with the CNBconnect BUSINESS Online Banking, including, without limitation, your inability to access CNBconnect BUSINESS Online Banking or any part of CNBconnect BUSINESS Online Banking.
j. For a failure to provide access or for interruptions in access to the CNBconnect BUSINESS Online Banking due to CNBconnect BUSINESS Online Banking system failure.
NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT, UNLESS OTHERWISE PROHIBITED BY LAW, OUR SOLE RESPONSIBILITY FOR AN ERROR BY US OR OUR THIRD PARTY PROVIDER IN TRANSFERRING FUNDS, PAYING A BILL, OR OTHERWISE ARISING FROM OR RELATING TO THIS AGREEMENT WILL BE TO CORRECT ANY ERRORS [AND PAY ANY PENALTIES AND ASSOCIATED LATE CHARGES TO THE PAYEE], BUT IN NO CASE WILL WE BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES IN CONNECTION WITH OR IN ANY WAY RELATED TO CNBconnect BUSINESS Online Banking OR OUR PERFORMANCE HEREUNDER.
IN NO EVENT WILL OUR LIABILITY FOR ANY DIRECT DAMAGES ARISING FROM OR RELATING TO THIS AGREEMENT, THE SERVICE OR THE INTERNET GENERALLY EXCEED THE TOTAL FEES INCURRED BY YOU DURING THE THREE (3) MONTHS IMMEDIATELY PRECEDING ACCRUAL OF SUCH CAUSE OF ACTION. IF YOU ARE DISSATISFIED WITH CNBconnect BUSINESS Online Banking, YOUR SOLE AND EXCLUSIVE REMEDY SHALL BE FOR YOU TO DISCONTINUE USE OF CNBconnect BUSINESS Online Banking AND/OR TERMINATE THIS AGREEMENT IN ACCORDANCE WITH SECTION 15.
YOU AGREE TO INDEMNIFY AND HOLD US HARMLESS FROM ANY AND ALL CLAIMS, DEMANDS, ACTIONS, SUITS, DAMAGES, JUDGEMENTS, LIABILITIES, COSTS AND EXPENSES, AND ATTORNEY'S FEES ARISING OUT OF OR RESULTING FROM YOUR USE OF CNBCONNECT BUSINESS ONLINE BANKING OR YOUR BREACH OF ANY OF YOUR OBLIGATIONS UNDER THIS AGREEMENT. YOUR OBLIGATION TO INDEMNIFY US SHALL SURVIVE TERMINATION OF THIS AGREEMENT.

15. Termination. We may modify, suspend or terminate your privilege of using CNBconnect BUSINESS Online Banking and may withhold approval of any transaction, at any time, without prior notice to you. In the event we terminate CNBconnect BUSINESS Online Banking, we will try to notify you in advance but are not required to do so. You will be notified as soon as practicable. You may terminate CNBconnect BUSINESS Online Banking upon our receipt of written notice from you. Termination shall not affect the rights and obligations of the parties for transactions made with the CNBconnect BUSINESS Online Banking before we have had a reasonable time to respond to your termination request.
You must cancel all future funds transfers, whether recurring or individual payments, when you terminate CNBconnect BUSINESS Online Banking or we may continue to process such payments.

16. Third Parties. You understand that support and services relating to CNBconnect BUSINESS Online Banking are provided by third parties other than us, and you authorize us to contract with third parties to provide such support and service. You release us from any liability for failures, acts or omissions of any third party system operator including, but not limited to, unauthorized access to theft or destruction of your information or instructions.

17. Amendment. We may amend this Agreement at any time. Notice will be sent to you at your current address in our files. Amendments will be effective upon the date indicated in the notice.

18. General. This Agreement is intended to supplement and not to replace other agreements between you and us relating to your Accounts, including, without limitation, our Deposit Account Rules, ACH Agreements and Wire Transfer Agreements. In the event of a conflict between this Agreement and any other Account rules and agreements that apply to your Accounts or the functions performed using CNBconnect BUSINESS Online Banking, this Agreement shall govern and prevail. This Agreement is binding upon and inures to the benefit of the parties and their personal representatives, successors and assigns. The internal laws of the State of New York govern this Agreement.

19. Additional Provisions. NONE


Security Statement
This Internet Banking System brings together a combination of industry-approved security technologies to protect data for the bank and for you, our customer. It features password-controlled system entry, a VeriSign-issued Digital ID for the bank's server, Secure Sockets Layer (SSL) protocol for data encryption, and a router loaded with a firewall to regulate the inflow and outflow of server traffic.

CNB will never ask you to provide personal or confidential information like your social security number, account number, password or personal identification number (PIN) through the internet of e-mail. This is information that we already have on file. Please call (516) 498-9111 for verification before responding to any requests for this type of information.

Security Image
Once the security changes are in place, you will be provided a security image and prompted to enter a security phase. After your initial login, you can choose this image and phrase by selecting "Options" then "Change Security Data." Each time you log in, you will see the security image that you selected and know that you are on the authentic bank site. Only at this time will you enter your password.

Security Questions
You will be prompted to answer three security questions. If we do not recognize the computer you are using to log in, we will ask you to answer one of the security questions you have previously created.

Secure Access and Verifying User Authenticity
To begin a session with the bank's server the user must key in a Log-in ID and a password. Our system, the Internet Banking System, uses a "3 strikes and you're out" lock-out mechanism to deter users from repeated login attempts. After three unsuccessful login attempts, the system locks the user out, requiring a phone call to the bank to verify the password before re-entry into the system. Upon successful login, the Digital ID from VeriSign, the experts in digital identification certificates, authenticates the user's identity and establishes a secure session with that visitor.

Secure Data Transfer
Once the server session is established, the user and the server are in a secured environment. Because the server has been certified as a 128-bit secure server by VeriSign, data traveling between the user and the server is encrypted with Secure Sockets Layer (SSL) protocol. With SSL, data that travels between the bank and customer is encrypted and can only be decrypted with the public and private key pair. In short, the bank's server issues a public key to the end user's browser and creates a temporary private key. These two keys are the only combination possible for that session. When the session is complete, the keys expire and the whole process starts over when a new end user makes a server session.

Router and Firewall
Requests must filter through a router and firewall before they are permitted to reach the server. A router, a piece of hardware, works in conjunction with the firewall, a piece of software, to block and direct traffic coming to the server. The configuration begins by disallowing ALL traffic and then opens holes only when necessary to process acceptable data requests, such as retrieving web pages or sending customer requests to the bank. Using the above technologies, your Internet banking transactions are secure.