This HOB Online Internet Banking Agreement and Disclosure (the "Agreement") discusses how you can use Heritage Oaks Bank "HOB Online" (the "Service") to obtain information about your accounts, to transfer funds between your accounts, and to request certain other bank services. It also contains the terms and conditions governing the Service. If you previously registered for HOB Online, this version of the Agreement replaces the agreement that you had with us. If you continue to use the Service, you are bound by these terms. Under this updated Agreement, customers can use the Service to transfer funds between their Heritage Oaks Bank accounts. (Commercial customers can use HOB Online to transfer funds between their accounts if they have the appropriate agreement(s) on file. See Registration – Business Accounts, below.)

IF YOU ARE A CORPORATE CUSTOMER AND DO NOT WISH TO HAVE THE ABILITY TO TRANSFER FUNDS BETWEEN ACCOUNTS USING HOB ONLINE, PLEASE CALL US AT (805) 369-5200, AND WE WILL REMOVE THAT FUNCTION FROM YOUR SERVICE. If you use HOB Online, you thereby indicate your consent to these terms. You may print a copy of this Agreement for your records now, or you can refer to this document in the Terms of Service later at your convenience.

HOB Online Service
HOB Online is a consumer electronic banking service. You may access HOB Online through Heritage Oaks Bank's web page on the Internet, www.HeritageOaksBank.com.

Equipment and Technical Requirements
You understand that to use HOB Online, you are required to acquire the equipment and communication support necessary to connect to the Internet. (For example, Personal Computer, modem, and Internet Access Service. A printer will be required if you wish to print account information on paper.)

Security & Protecting Your Account
Heritage Oaks Bank is strongly committed to protecting the security and confidentiality of our customer account information. Heritage Oaks Bank uses state-of-the-art technology in the ongoing development of its HOB Online Internet Banking service to ensure this security. We use several different methods to protect your account information:

• You can only access HOB Online with certain browsers that have a high security standard.
• Your account numbers are not displayed in full - only the last 4 digits can be viewed.
• You must have a valid Access ID and Password to logon. Passwords must contain at least six characters, two of which must be numbers. We will require you to select a new password every six months.
• If no action is taken for 10 minutes, you will be automatically logged off HOB Online.

Your Responsibility:
You agree...

• Not to give out your identifying information, such as your HOB Online Password, to any other person. The Bank may rely on your Access ID to identify you when providing online banking services to you.
• Never to leave your account information displayed in an area accessible by others.
• Never to leave your PC unattended while using HOB Online.
• To always exit the system by clicking on EXIT after using HOB Online.
• To notify Heritage Oaks Bank HOB Online at (805) 369-5200 immediately if you suspect that your Access ID or Password has become known to any unauthorized person.

HOB Online E-Mail Communications
Electronic messages sent and received via the "Contact Us" option in HOB Online (i.e., once your Access ID and Password have been accepted by Heritage Oaks Bank and your browser shows that a secure connection has been established) are secure. 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 communication options provided in our Customer Service section. You agree that we may take a reasonable time to act on any e-mail. Correspondence that requires expeditious handling – for example, if you need to report an unauthorized transaction from one of your accounts, or if you need to immediately stop payment on a check you have issued, should be made by calling the Bank. (The telephone number for the Customer Service Center in your city is listed on the Information page at www.HeritageOaksBank.com). You agree that Heritage Oaks Bank may send you electronic messages about other products or services we offer.

Registration – Business and Corporate Cash Management Accounts
Heritage Oaks Bank business account customers must first contact the Bank and/or enroll in HOB Online Internet Banking Services by completing and signing the Cash Management Corporate Representative Form, Access Identifier Enrollment and other forms that may be required, such as Wire Transfer Agreements, ACH Origination Agreements, etc.

At the present time, the representative activity levels are:

Account Inquiry: This activity level will allow you to obtain current account balance and transaction information for the previous 60 days. This activity level does not include transferring funds.

Transferring Funds: This activity level allows you to obtain account information, to transfer funds between accounts linked to the Access ID, and to obtain certain other banking services. Each checking, money market and loan account linked to your Access ID will have this activity level, unless you choose otherwise.

Bill Payment: This activity level will include the right to make payments to third parties through our HOB Online Internet Banking Service. Superuser: Only signers on the account will be given the superuser status. Any additional users added will have limited access controlled by the superuser.

Registration – Personal Accounts
Heritage Oaks Bank personal account customers must first either enroll on-line or complete the Heritage Oaks Bank HOB Online Enrollment Form and either fax it to 805-369-5001 or return the completed and signed original to Heritage Oaks Bank, Attention: HOB Online, 545 12th Street, Paso Robles, CA 93447, for Internet Banking Services.

HOB Online Internet Banking Funds Transfer Provisions: As a Heritage Oaks Bank HOB Online customer, you can make immediate transfers between your Heritage Oaks Bank deposit accounts over the Internet. All such transfers are subject to the terms of these HOB Online Internet Banking Funds Transfer Provisions (the "Transfer Provisions"). You can also use HOB Online to transfer funds between certain line of credit accounts and your deposit accounts. Transfers are not permitted from one line of credit account to another line of credit account. By using the Funds Transfer Service (the "Service"), you agree to these Transfer Provisions.

General Information: Meaning Of Terms. As used in the Transfer Provisions, the following words have the meanings given below. "You" and "your(s)" refer to each person (including any business) who applies to use the Service, and each person who uses the Service with the permission of an applicant. "Business" means any corporation, partnership, Limited Liability Company, sole proprietorship or any other type of entity maintaining a deposit account for commercial purposes. "We," "us," "our(s)," "Heritage Oaks Bank," or "Bank" refer to the Heritage Oaks Bank. "Business Day" means Monday through Friday, except banking holidays.

Which Sections of These Provisions Apply to Consumer and Business Customers - Exclusion: When using the Service in connection with accounts established primarily for personal, family, or household purposes ("consumer" or "personal" accounts), Sections 1, 2, and 3 of these Transfer Provisions apply to you. When using the Service in connection with accounts established primarily for business purposes, Sections 1, 2, 3 and 4 of these Transfer Provisions apply to you.

Authorization to Charge Accounts: You are responsible for all transfers you or your authorized representatives make using the Service. You authorize us to debit your designated account(s) for any transactions accomplished through the use of the Service (including the transfer of funds from another deposit account or overdraft line of credit that provides overdraft protection, if you have one of those services in effect). You agree that we may comply with transfer instructions entered by any one person using an authorized Access ID and Password, not withstanding any provision that may be contained in other account documentation purporting to require more than one signature to withdraw funds from the account. If you permit another person to use Heritage Oaks Bank HOB Online or give them your Access ID or Password, you are responsible for transfers, payments or advances that person makes from the deposit and credit accounts linked to your Service registration even if that person exceeds your authorization. These Transfer Provisions do not apply to any transfer of funds, the primary purpose of which is the purchase or sale of securities or commodities in or through a Money Market Account.

Schedule of Fees for the Funds Transfer Service: Fees applicable to the funds transfer service are disclosed under the Schedule of Fees.

HOB Online Internet Banking Funds Transfer Service Particulars
Types of Transfers; Posting: You can transfer funds between your Checking and Savings accounts using HOB Online, and between your deposit accounts and your Money Market Account. All such transfers are effective when you complete the transaction online. You can also transfer funds between your deposit accounts and certain line of credit accounts using HOB Online. Transfers to a line of credit account will not be reflected in your line of credit account until the business day following the day on which you complete the transaction. You cannot transfer funds between line of credit accounts using the Service.

Limits On Transactions: There is a maximum dollar limit on any transfer equal to the available balance in your account plus the available balance or credit balance in any other account or line of credit attached to the deposit account to provide overdraft protection.

Availability: Funds must be available in the account from which you wish to transfer funds on the date you enter the transaction.

Restrictions on Transfers from Savings and Money Market Accounts: Under Federal Reserve Board Regulation D, you may make an unlimited number of deposits or transfers into a savings or money market account; however, you may make no more than six transfers or withdrawals out of such an account per monthly statement cycle (not counting transactions made at ATMs or at banking centers). Transfers made by telephone, personal computer or funds automatically transferred from a savings or money market account to another deposit account for overdraft protection are counted toward the six total permitted monthly transfers or withdrawals. If your transactions exceed the legal limit, we will charge you a fee for each such transaction in excess of the legal limit. If you exceed the restrictions more than three times during a 12-month period, we may close the savings or money market account and transfer the funds to a checking account. On Regular and Student Savings accounts, we charge a fee for each withdrawal or transfer in excess of three per quarter. The amount of these fees and the minimum balances necessary to avoid these fees, where applicable, are set forth in the Schedule of Fees.

Insufficient Funds to Complete Transfer: If your account does not have sufficient funds to complete a transfer as of the date the transfer is scheduled to be made, the transfer may not be completed, but if we do complete the transfer as an accommodation to you, you are responsible for any overdraft created.

Correcting or Canceling Your Transfer: You cannot cancel your transfer after it has been entered in HOB Online and the information transmitted to us. You can correct information about a transfer before you send us the information, and you can use HOB Online to reverse a transaction after it has been entered.

Documentation and Verification of Transfers: The date and amount of transfers made through HOB Online will be shown on the Transaction History screen of HOB Online, and will also be shown on your printed statements for the accounts from which and to which the transfer is made.

Address and Telephone Number For Notification Of Unauthorized Use: If you believe your Access ID or password has become known by an unauthorized person, or that someone has transferred money without your permission, call Heritage Oaks Bank immediately at: (805) 239-5200 or write to: Heritage Oaks Bank, Attn: HOB Online, P.O. Box 7012, Paso Robles, CA 93447. If you suggest that an unauthorized transfer may have occurred, we may require you to sign an affidavit.

Also contact us with any other questions or problems that you may have regarding the Service, including:

• You have a problem with a transfer you authorized, or your statement reflects a transfer you think is in error.
• You need to obtain documentation concerning a transfer previously issued from your account. (There may be a fee for these requests, as disclosed in the Schedule of Fees at the end of this Agreement).

Disclosure of Account Information
We may disclose information to third parties about your account or the payments or transfers you make:

• When necessary for verifying or completing payments or transfers, or to resolve a problem related to a payment or transfer.
• To verify the existence and status of your account for a third party such as a credit bureau or merchant.
• If you give us your written (including electronic message) permission.
• As otherwise permitted or required in the Bank's Deposit Agreement and Disclosures or other applicable agreements, or by law or government regulations.

Additional Provisions Applicable Only to Business and Corporate Cash Management Accounts
When you transfer funds using HOB Online in connection with business accounts, the information in this Section 4 applies to you.

• Enrollment Form and Certification of Authority: Before using the Service, you must execute and deliver to us an Access Identifier Enrollment Form, which includes a Certification of Authority. This enrollment form is incorporated by reference as part of this Agreement. Only a person whose Access ID has a "Financial Transaction" or "Bill Payment" activity level may sign up for the Heritage Oaks Bank HOB Online Funds Transfer Service.
• Protecting Your Access ID and Password: You agree that we may send confidential mailings, including Access ID and Password confirmations, to the current address shown in our records for your primary checking account whether or not that address includes a designation for delivery to the attention of any particular individual; and you further agree that Heritage Oaks Bank 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 business.

You agree to:

• Keep your Access ID and Password secure and strictly confidential, providing them only to authorized signers on your account(s) or other trusted employees, agents, etc. who you want to act as your representative to access your account(s).
• Instruct each person to whom you give your Access ID and Password that he or she is not to disclose them to any unauthorized person; and
• Immediately notify us and select a new Access ID and Password if you believe your confidential codes may have become known to an unauthorized person.

The Bank shall have no liability to you for any unauthorized payment or transfer made using your Access ID and Password that occurs before you have notified us of possible unauthorized use and we have had a reasonable opportunity to act on that notice. We reserve the right to suspend or cancel your Access ID and password, even without receiving such notice from you, if we suspect they are being used in an unauthorized or fraudulent manner.

Your Obligation to Examine Records And Report Discrepancies
The Bank provides no separate written confirmation of individual payments or transfers. Confirmation is provided through online information available from the Service and through your periodic mailed account statements. You agree to examine your statement promptly and to notify us immediately of any discrepancy between the statement and your other account records. You also agree to notify us immediately of any discrepancy you may find in reviewing online information. In no event shall the Bank be liable for interest compensation as described below, unless we are notified of a discrepancy within 60 days from the date of your first statement reflecting the discrepancy.

Acknowledgment of Commercially Reasonable Security Procedures
By using the Service, you acknowledge and agree that this Agreement sets forth security procedures for electronic banking transactions which are commercially reasonable. You agree to be bound by any instructions, whether authorized or unauthorized, which we implement in compliance with these procedures, unless you have given us prior notice of possible unauthorized use as described above (and we have had a reasonable opportunity to act on such notice).

Limitation of Bank's Liability
If we fail or delay in making a payment or transfer pursuant to your instructions, or if we make a payment or transfer in an erroneous amount which is less than the amount per your instructions, unless otherwise required by law our liability shall be limited to interest on the amount which we failed to timely pay or transfer, calculated from the date on which the payment or transfer was to be made until the date it was actually made or you canceled the instructions. We may pay such interest either to you or the intended recipient of the payment or transfer, but in no event shall we be liable to both parties, and our payment to either party shall fully discharge any obligation to the other. If we make a payment or transfer in an erroneous amount which exceeds the amount per your instructions, or if we permit an unauthorized payment or transfer after we have had a reasonable time to act on a notice from you of possible unauthorized use as described above, unless otherwise required by law our liability shall be limited to a refund of the amount erroneously paid or transferred, plus interest thereon from the date of the payment or transfer to the date of the refund, but in no event to exceed 60 days' interest. If we become liable to you for interest compensation under this Agreement or applicable law, such interest shall be calculated based on the average federal funds rate at the Federal Reserve Bank in the district where the Bank is headquartered for each day interest is due, computed on the basis of a 360-day year. Unless otherwise required by law, in no event will the Bank be liable to you for special, indirect or consequential damages including, without limitation, lost profits or attorneys' fees, even if we are advised in advance of the possibility of such damages.

Stop Payment Agreement

1. It is your responsibility to give us an exact description of the check or ACH/EFT in order for us to stop payment. If you give us any incorrect information, we will not be responsible for not stopping payment.
2. You agree that unless your stop payment order is received by us: (a) if a check, within a reasonable period of time for us to act on the Stop Payment Order prior to final payment of the check by the bank, or (b) if an ACH/EFT transfer, at least three business days preceding the scheduled date of the pre-authorized ACH/EFT, the bank will not be responsible for stopping payment. You agree that you may not request stop payment on any point-of-sale ACH/EFT, certified check, official institution check you have purchased from the bank, or any check which we have guaranteed payment. You understand that your stop payment request is conditional and subject to our verification that the check has not already been cashed or paid or that some other final payment action has not be taken.
3. Duration. (a) A stop payment order against a check is effective for six (6) months but will expire automatically after 14 calendar days if the order is oral and is not confirmed by you in writing during that period. A written stop payment order is effective for six (6) months only and will expire automatically at that time unless you specifically renewed it in writing prior to expiration (b) a stop payment order against an ACH/EFT transfer is effective only against the transfer described in the particular order and does not cancel or revoke your authorization for future ACH/EFT transfers by the same originator unless an ACH/EFT Permanent Revocation is indicated and you have executed and submitted an AFFIDAVIT OF UNAUTHORIZED ACH DEBIT ENTRY with your STOP PAYMENT REQUEST. An ACH/EFT stop payment order expires on the date scheduled for the transfer stopped.

Related Agreements
Your Heritage Oaks Bank accounts accessed by HOB Online continue to be governed by the following Heritage Oaks Bank agreements and documents, as they are amended from time to time:

• Deposit Account Agreement and Disclosure
• The Schedule of Account Fees and Services
• The Electronic Funds Transfer Agreement and Disclosure
• Facts About Funds Availability - Deposits, Holds and Withdrawals
• The Personal and Business Checking Account Features Brochure

If you have overdraft protection accounts that are accessed by HOB Online, they continue to be governed by the applicable agreements you have with Heritage Oaks Bank. If any inconsistency exists between such other documentation and this Agreement, then this Agreement shall control to the extent of the inconsistency.

Our Ability To Terminate Services
You are responsible for complying with all the terms of this Agreement and with the terms of the agreements governing the accounts to or from which transfers are made using the Service. We can terminate your electronic banking privileges under this Agreement without notice to you if you do not pay any fee when due, or if you do not comply with any agreement governing your accounts, or if any such account is not maintained in good standing. We can also terminate the Service if we believe that an actual or potential unauthorized use of your Access ID, Password or account may be occurring. Heritage Oaks Bank reserves the right to terminate your access to the Heritage Oaks Bank Online Service or any portion of it in its sole discretion, without notice and without limitation, except as may be required by law.

Amendment
We can amend this Agreement upon notice to you, which you agree may be sent by e-mail. Any notice will be effective not later than ten (10) days after we send the notice (unless a law or regulation requires a longer notice period), whether or not you have retrieved the notice by that time.

New Services
We may, from time to time, introduce new services that are part of HOB Online. We will update this Agreement to notify you of the availability of these new services. By using HOB Online after those new services become available, you agree to be bound by the terms contained in the revised agreement.

Virus Protection
You agree that Heritage Oaks Bank is not responsible for any electronic virus that you may encounter using HOB Online. We encourage you to routinely scan your PC and diskettes using any reliable virus protection product to detect and remove any viruses found. Undetected or unrepaired, a virus may corrupt and destroy your programs, files and even your hardware.

Our Liability
Except as specifically provided in this Agreement or where the law requires a different standard, you agree that Heritage Oaks Bank nor any of its subsidiaries or affiliates (collectively, "Heritage Oaks Bank") nor any third party service providers engaged by Heritage Oaks Bank to perform any of the services connected with HOB Online shall be responsible for any damages, loss, property damage or bodily injury, incurred as a result of your using or attempting to use the HOB Online Service, whether caused by the equipment, software, Internet browser providers such as Netscape (Netscape Navigator browser) or Microsoft (Microsoft Internet Explorer browser), Internet access providers or on-line service providers or an agent or subcontractor of any of the foregoing. Nor shall Heritage Oaks Bank or any third party service providers engaged by Heritage Oaks Bank be responsible for any direct, indirect, special or consequential, economic or other damages arising in any way out of the installation, use or maintenance of the equipment, software, HOB Online or Internet browser or access software, or from the unavailability of HOB Online or for any errors in information provided through that service.

Charges and Fees
Customer Service requests for which you may be charged by Heritage Oaks Bank include: ordering copies of checks, copies of statements or other requests made through the 'Send a Request' option. These service requests are subject to Heritage Oaks Bank's normal service charges that were disclosed at account opening and in any subsequent editions of or amendments to your Schedule of Account Services and Fees brochure. Please refer to the latest version of your Schedule of Account Services Fees Disclosure document and any applicable amendments. Transfers of funds using HOB Online are currently free except as follows. If you have a Money Market or Savings Account, the number of transactions that you are allowed during a monthly statement cycle is limited. Transfers through HOB Online are counted, and if you exceed the total number of authorized transactions for those accounts, your account will be charged as stated below. If a transfer from a deposit account draws funds from an overdraft line of credit, or you directly make a transfer from your line of credit, you may be charged a fee for each advance, as stated in your line of credit agreement. On Money Market and Savings accounts, the numbers of transfers that you are allowed during a monthly statement cycle are limited. Transfers through HOB Online are included, and if you exceed the total number of authorized transactions for these accounts, your account may be charged an excessive activity fee.

Entire Agreement
This Agreement, as it may be amended from time to time, and if you are a business customer, your Access ID, Agreement and Disclosure and the Access Identifier Enrollment Form, contain the entire understanding between you and Heritage Oaks Bank concerning the HOB Online service, and supersedes any verbal conversations, other communications, and previous agreements, if any.