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Annandale State Bank

Dated: March 4, 2003

This ASBNET Agreement and Disclosure ("Agreement") is the contract which covers both your and our rights and responsibilities concerning the ASBNET Internet Banking Product services offered to you by Annandale State Bank ("Financial Institution"). The ASBNET services permit you to inquire on all of your accounts and transactions, electronically initiate account transactions involving your accounts, electronically initiate transfers from your accounts, and communicate with Annandale State Bank. In this Agreement, the words "you", "your" and "yours" mean those who request and use ASBNET, any joint owners of accounts accessed under this Agreement or any authorized users of this service. The words "we", "us" and "our" mean Annandale State Bank. The word "accounts" means any one or more accounts you have with Annandale State Bank. By requesting and using the ASBNET service, each of you, jointly and severally, agree to the terms and conditions of this Agreement, and any amendments.

Account Access: You may use your personal computer to access your accounts. You will need a personal computer, direct dial modem and access to the Internet. ASBNET is protected by 128-bit encryption issued and authorized by VeriSign. Netscape Communicator 5.5 or Internet Explorer 5.5 or greater with 128-bit encryption is required to access ASBNET. You are responsible for the installation, maintenance and operation of any software and your computer. We will not be responsible for any errors or failures involving any telephone service, Internet service, software installation or your computer. The ASBNET service is accessible 7 days a week, 24 hours a day through your Internet Service Provider unless we experience technical difficulties. You must use your Access ID and Password to access your accounts. You define your "Access ID" and "Password". Your Access ID has no restrictions (you can use numbers, first name and last initial, first initial and last name, etc) as long as it is 6 characters in length. Once you have selected your Access ID you will not be allowed to change it. The password must be a minimum of 12 characters and a maximum of 17 characters. The Password must include a minimum of: 2 numbers, 2 lowercase letters and 2 UPPERCASE letters. Special characters, like @, # or $ are also encouraged but not required. You may change your password as often and as many times as you would like.

Types of Services: At the present time, you may use the ASBNET service to:

• Review balances, transaction history and tax information on any of your Checking, Savings, IRA, Certificate of Deposit and Loan accounts.
• Request Stop Payment on a check if you know the check number and amount.
• Transfer funds between your checking, savings and loan accounts on a "one time" or scheduled basis.
• Download your account transactions to "Quicken," "Microsoft Money" or "Excel".
• Communicate with us using the "E-MAIL US" electronic mail feature.

Transactions involving your deposit accounts, including checking account stop payment requests via electronic mail will be subject to the terms of your account agreement and transactions involving a line of credit account will be subject to your loan agreement and disclosures, as applicable.

Service Limitations: The following limitations on ASBNET transactions may apply in using the services listed above:

• Transfers: You may make funds transfers to other accounts of yours as often as you like. However, transfers from a money market account will be limited to a total of 6 in any one month. The 6 transactions may be all electronic transfers. However, no more than 3 of the 6 allowed transactions may be made to a third party. You may transfer or withdraw up to the available balance in your account or up to the available credit limit on a line of credit at the time of the transfer, except as limited under this Agreement or your deposit or loan agreements. We reserve the right to refuse any transaction that would draw upon insufficient or unavailable funds.
• Account Information: The account balance and transaction history information may be limited to recent account information involving your accounts. The availability of funds for transfer or withdrawal may be limited due to the processing time for ATM and other electronic transactions and our Funds Availability Policy.
• E-Mail: We may not immediately receive E-mail communications that you send and we will not take action based on E-mail requests until we actually receive your message and have a reasonable opportunity to act. If you need to contact us immediately regarding an unauthorized transaction or stop payment request, you may call us at (320) 274-8216.
• Stop Payments: You may stop payment on any check if you know the check number and amount of the check. Stop payments will be charged the current stop payment fee in effect at that time. We will require you to confirm your stop payment in writing within 14 days after the request.

Security of Access ID and Password: The original Access ID and password for ASBNET will be randomly selected by us. The first time you access ASBNET, you must click on the "Log on" button. Enter the randomly selected Access ID and password given to you by us and then click on SUBMIT. You will be prompted to change your Access ID and password. Refer to the Account Access section for Access ID and password requirements. The Access ID and password rules are designed for your maximum protection. The Access ID and password is confidential and should not be disclosed to third parties or recorded. You are responsible for the safekeeping of your Access ID and password. You agree not to disclose or otherwise make your Access ID and password known to anyone not authorized to sign on your accounts. If you disclose your Access ID and password to anyone, that person may be able to access your private account information. Your Access ID will remain constant. You will be able to change your password as often and as many times as you desire. If you suspect your password has been compromised, change your password immediately. We may terminate your ASBNET access if we believe your Access ID and password has been compromised.

Liability for Unauthorized Access: You are responsible for all transfers you authorized under this Agreement. If you permit other persons to use your Access ID and password, you are responsible for any transactions they authorize or conduct on your accounts. However, tell us at once if you believe anyone has used your Access ID and password or accessed your accounts through ASBNET without your authorization. Immediately changing your password and telephoning us is the best way of keeping your losses down. If you tell us within 2 business days, you can lose not more than $50.00 if someone accesses your accounts without permission. If you do not tell us within 2 business days after you learn of the unauthorized use of your account or password, and we can prove that we could have stopped someone from accessing your account without your permission if you had told us, you could lose as much as $500.00.

If you notice any unauthorized transfers when viewing your transactions on ASBNET or on your statement, notify us at once. If you do not notify us within 60 days after the statement was mailed to you, you may not get back any money lost after the 60 if we can prove that we could have stopped someone from making the transfers if you had told us in time.

Or write us at:

Annandale State Bank

PO Box 310

Annandale, MN 55302

Business Days: Our business days are Monday through Thursday, 8:30 AM to 4:30 PM and Friday, 8:30 AM to 7:00 PM. Bank Holidays are not included. For on-line transactions, our cutoff time is 4:00 PM. Anything received by us after 4:00 PM or received on Saturdays, Sundays, and bank holidays, will be considered received on the next business day. You may contact us to inquire if a given holiday is determined by us to be a business day.

Fees and Charges: ASBNET Internet Banking is free.

Periodic Statements: Transfers and withdrawals transacted through ASBNET will be recorded on your periodic statement. You will receive a statement monthly unless there is no transaction in a particular month. In any case, you will receive a statement at least quarterly.

Account Information Disclosure: We will disclose information to third parties about your account or the transfers you make if:

• The disclosure is necessary for the completion of an electronic transfer.
• The disclosure is for the purpose of verifying the existence and condition of an account for a third party, including but not limited to, a credit bureau or merchant.
• The disclosure is necessary to resolve an error or an inquiry as to an alleged error.
• The disclosure is made to a supervisory agency in the exercise of its supervisory and regulatory examination functions with respect to a financial institution.

Financial Institution's Liability for Failure to Make Transfers: 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 and the data you entered, we will be liable for your actual losses or damages. However, we will not be liable:

• If, through no fault of ours, you do not have adequate funds in your account to complete a transaction, your account is closed, or the transaction amount would exceed your credit limit on your line of credit, if applicable.
• You used the wrong Access ID or password, or you have not properly followed any applicable computer or Internet Access instructions, or you did not receive a confirmation number from our ASBNET system.
• If your computer fails or malfunctions or the ASBNET service was not properly working and such a problem should have been apparent when you attempted such transaction.
• If circumstances beyond our control (such as fire, flood telecommunication outages, postal strikes, equipment or power failure) prevent us from making the transaction.
• If the funds in your account are subject to an administrative hold, legal process, or other claim.
• If you did not accurately complete the transfer information so that we can process the transfer.
• If the error was caused by a system beyond our control, such as your Internet Service Provider.
• If there are other exceptions as established by us from time to time.

Termination of ASBNET Services: You agree that we may terminate this Agreement and your use of the ASBNET services if you or any authorized user of your account or password, breach this or any other agreement with us; or if we have reason to believe that there has been an unauthorized use of your account or Password.

You or any other signer to your account can terminate this Agreement by notifying us in writing. Termination of service will be effective the first business day following receipt of your written notice. However, termination of this Agreement will not affect the rights and responsibilities of the parties under this Agreement for transactions initiated before termination.

Notices: We reserve the right to change the terms and conditions upon which this service is offered. We will post a notice of change on our webpage for a period of at least 30 days after any change has been made. You agree this type of notification is acceptable to you and any use of ASBNET services after the notice has been posted constitutes your agreement with the new terms and conditions. Use of ASBNET services is subject to existing regulations governing your accounts and any future changes to those regulations.

Error Resolution Notice: In case of errors or questions about your ASBNET transactions, telephone us at (320) 274-8216 or e-mail us at asbank@annabank.com or write us at the address set forth above in the Liability for Unauthorized Access section as soon as you can. We must hear from you no later than 60 days after we sent the first statement on which a problem appears.

• Tell us your name and account numbers.
• Describe the transaction in question and explain as clearly as you can why you believe it is an error or why you need additional information on the transaction.
• Tell us the dollar amount and date of the suspected error.

If you tell us orally, we may require that you send us your complaint or question in writing within 10 calendar days. We will determine whether an error has occurred within 10 business days (20 business days if the transfer involved a new account) after we hear from you and we will correct the error promptly. If we need more time, however, we may take up to 45 days (90 days if the transfer involved a new account or foreign initiated transaction) to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days (20 business days if the transfer involved a new account) for the amount you think is in error, so that you will have 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. An account is considered a new account for 30 days after the first deposit is made, if you are a new customer.

We will tell you the results within 3 business days after completing our investigation. 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.

Enforcement: You agree to be liable to us for any liability, loss, or expense as provided in this Agreement that we incur as a result of any dispute involving your accounts or services. You authorize us to deduct any such liability, loss or expense from your account without prior notice to you.

Right To Bring Civil Action: You may bring a civil action against any person violating any provision of Minnesota Statutes # 47.69 (governing consumer privacy and unauthorized withdrawals).

If you prevail in such action, you may recover the greater of your actual damages or $500.00. You may also be entitled to recover punitive damages, your court costs and reasonable attorney's fees.

Governing Law: This Agreement shall be governed by and construed in accordance with all applicable federal laws and all applicable laws of the State of Minnesota where you opened your account. You understand that we must comply with these laws, regulations and rules. You agree that if there is any inconsistency between the terms of the Agreement and any applicable law, regulation, or rule, the terms of this Agreement will prevail to the extent any such law, regulation, or rule, may be modified by agreement between us.

In addition, when using the Website or sending e-mail, information will be sent over the Internet, including communication lines and computers that we do not control. As a result, we assume no liability for, or relating to, the delay, failure, interruption or corruption of any information sent as a part of your use of the Website.