ELECTRONIC FUNDS TRANSFER DISCLOSURE

1. Coverage. This Agreement applies to transactions conducted with an automated teller card ("Card") issued to you at your request, which permits you to access through certain terminals ("terminals") certain of your accounts established with us. This Agreement also applies to preauthorized electronic fund transfers to and from certain of your deposit accounts established with us. This Agreement applies to all persons that are party to the accounts. Every person who can use the accounts is responsible for the use of the Card. In this Agreement, the terms "you" and "your" refer to each party to the account, and the terms "us," "we", and "our" refer to the Bank. Transactions and accounts governed by this Agreement are also subject to applicable federal and Wisconsin laws and regulations and any other rules or agreements governing or referring to the transactions or accounts, including but not limited to account agreements, debit card rules, funds availability rules, depository agreements and the Operating Rules of the National Automated Clearing House Association. Except as may be specifically indicated in this Agreement, in cases of inconsistency or conflict between the other rules or agreements and this Agreement, this Agreement shall control.
2. Authorized Use of Card and PIN. We will issue a personal identification number ("PIN") to you for use in connection with the Card. You agree not to disclose the PIN to anyone other than authorized users of the Card. If anyone uses your Card or PIN with your permission, you will be responsible for any charges made to the account. You agree to safely keep the Card and PIN, not to record the PIN on the Card or otherwise disclose or make it available to anyone other than an authorized user, and to use the Card and PIN only at terminals that accept the Card and as instructed.
3. Liability Disclosure. Tell us AT ONCE if you believe your Card or PIN has been lost or stolen or if you believe there have been unauthorized transfers to or from your account. Telephoning is the best way of keeping your possible losses down. You can lose no more than $50 if someone used your Card and PIN without your permission. If any other unauthorized transfer was made from your account, and you do not tell us within 60 days of the date we mail a periodic statement to you, you may not get any money you lost after the 60 days if we show that we could have stopped someone from taking the money if you would have told us in time. You can lose no more than $50 for unauthorized transfers occurring within 60 days after the periodic statement was mailed to you. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods.
4. Address and Telephone Number. If you believe your Card or PIN has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call 1-800-267-3610 or write Baylake Bank, Attn: Deposit Processing at P.O. Box 9, Sturgeon Bay, WI 54235.
5. Business Day Disclosure. Our business days are Monday through Friday. The following holidays are not included as business days: Federal Holidays.
6. Goods and Services Purchased. If a merchant accepts the Card in payment of goods or services, and you receive credit for goods returned or adjustments, the merchant will send us a credit slip. We will apply the credit slip as a credit to your account. We will not make cash refunds to you on purchases made with the Card. Unless your use of the Card results in a loan from us to you, you must raise any claim or defense with respect to goods or services purchased with your Card directly with the merchant who honored the Card.
7. Chargebacks. As to any transaction which (a) involves a sale of goods or services which is paid for directly through a terminal; (b) involves a transfer of $50 or more from a deposit account; and (c) does not involve a check or draft, we shall, upon receipt within three business days of the transaction of written or oral notice from you, reverse the transaction and recredit your account.
8. Terminal Malfunctions. Terminals and these services are available for your convenience and we are not liable for the unavailability or failure to operate of all or any part of a terminal. You release us from liability for personal injury or property damage incurred by you in connection with use of the Card or any terminal and consequential damages incurred in connection with the use of a Card or terminal.
9. Termination. We may terminate your privilege of using the Card and may withhold approval of any transaction at any time. The privilege of using the Card by any of you may be terminated by any one person who can use the accounts accessible with the Card. The Card is our property and shall be surrendered by you to us upon request and regardless of who terminates the Card privileges. Termination shall not affect the rights and obligations of the parties for transactions made with the Card before the privileges are terminated.
10. Account Access. You may use your Card and PIN to accomplish the following transactions (some of these services may not be available at all terminals.
11. Overdrafts/Credit Account. Each withdrawal or transfer from an account is an order to us to pay from that account at that time, which we may charge against the account even though the charge creates an overdraft. The time required to charge or credit your account after you use your Card will depend on the location of the terminal and the type of transaction. 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. If any account is a credit account, such as a Visa card or MasterCard card account, you should refer to the agreement provided in connection with that account for your rights and responsibilities relating to transactions affecting that account in which the Card is used.
12. Transaction Limitations.  Federal law limits the number of preauthorized and automatic transfers from this account to a maximum of six per calendar month.  For money market accounts, transfers or withdrawals made by check, draft, debit card or similar order payable to third parties are included in the six preauthorized and automatic transfers. Preauthorized transfers include automatic transfers to another account or to a third party accomplished by written or oral agreement, computer payments, telephone instructions, or Automated Clearing House (ACH) at a predetermined time or on a regular or automatic basis. There is no restriction on transfers to your loan account at Baylake Bank, or withdrawals made in person, by mail or at an Automated Teller Machine (ATM).
13. Charge for Transfers. We will charge you for electronic fund transfers the fees, if any, identified in our current fee schedule accompanying this Agreement, as may be amended from time to time. A fee may also be imposed by a terminal/network operator if you initiate a transfer from a terminal that is not operated by us. You will be notified of any such fee when you use the terminal.
14. Terminal Transfers. You can get a receipt at the time you make any transfer to or from your account using a terminal.
15. Periodic Statements. Unless the only type of electronic transfer that you receive is a preauthorized deposit to your passbook account, you will get a monthly account statement. If there are no transfers in a particular month, you will get a statement at least quarterly.
16. Passbook Account Where the Only Possible Electronic Fund Transfers are Preauthorized Credits. If you bring your passbook to us, we will record any electronic deposits that were made to your account since the last time you brought in your passbook.
17. Preauthorized Credits. If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call us at 1-800-267-3610 to find out whether or not the deposit has been made.
18. Preauthorized Withdrawals.
(a) Right to Stop Payment and Procedure for Doing So. If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Here's how:
Call us at 1-800-267-3610, or write us at Baylake Bank, Attn: Deposit Processing P.O. Box 9, Sturgeon Bay, WI 54235, in time for us to receive your request 3 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 and get it to us within 14 days after you call. We will charge you for each stop payment order you give the charge for stopping payment identified in our current fee schedule accompanying this Agreement as may be amended from time to time.
(b) Notice of Varying Amounts. If these regular payments may vary in amount the person you are going to pay will tell you, 10 days before each payment, when it will be made and how much it will be. You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.
(c) Liability for Failure to Stop Payment of Preauthorized Transfers. If you order us to stop one of these payments 3 business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.
19. Our 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, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance:
-if, through no fault of ours, your account does not contain enough money to make the transfer.
-if the money in your account is subject to legal process or other encumbrances restricting the transfer.
-if the transfer would go over the credit limit on your overdraft credit plan, if any.
-if the terminal where you are making the transfer does not have enough cash.
-if the terminal or transfer system was not working properly and you knew about the breakdown when you started the transfer.
-if circumstances beyond our control (such as fire or flood) prevent the transfer despite reasonable precautions that we have taken.
-if incomplete or inaccurate information is forwarded by the U.S. Treasury or through an automated clearing house.
-as otherwise indicated in this Agreement.
20. Account Information Disclosure. We will disclose information to third parties about your account or the transfers you make: (a) to third parties where it is necessary for completing or tracing transfers or resolving errors or claims; or (b) to verify or disclose the existence, amount or condition of your accounts for third parties, such as credit bureaus, merchants or other financial institutions; or (c) pursuant to court orders and other legal process; or (d) to comply with subpoenas, summonses, search warrants or requests from government agencies; or (e) to comply with state or federal laws requiring us to provide information regarding depositors and their accounts to governmental agencies; or (f) to other companies affiliated with us, unless you have opted out of such disclosures in accordance with our Deposit Account Rules or privacy policy we provide to you; or (g) to others with your consent; or (h) otherwise in accordance with our privacy policy we provide to you.
21. Amendment. We may amend this Agreement upon giving you such notice as may be required by law, effective upon the date indicated in the notice.
22. Additional Provisions.
IN CASE OF ERRORS OR QUESTIONS
ABOUT YOUR ELECTRONIC TRANSFERS
Telephone us at 1-800-267-3610
or Write us at
Baylake Bank, Attn: Deposit Processing
P.O. Box 9, Sturgeon Bay, WI 54235
as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than 60 days after we sent you the FIRST statement on which the problem or error appeared.
1. Tell us your name and account number (if any).
2. Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.
3.Tell us the dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days.
We will determine whether an error occurred within 10 business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days for the amount you think is in error, so that you
will have the 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.
The 10 day periods in the preceding paragraph may be extended to 20 business days, if the error involves a transfer to or from the account within 30 days after the first deposit to the account was made.
If the error involves an electronic transfer from your account to buy goods or services direct from a merchant, a transfer initiated outside of the United States or a transfer that occurred within 30 days after the first deposit to the account was made, the 45 day time period to investigate your complaint or question will be 90 days in place of 45 days.
We will tell you the results within three 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.

SPECIFIC PRODUCT DISCLOSURES & AGREEMENTS.
1. ATM. (Automated Teller Card) Disclosure. In order to transfer funds into or out of your accounts using your ATM Card, it must be properly validated and you must have a Personal Identification Number (PIN). The total amount of withdrawals may not exceed $600 per day, including both cash withdrawals and point-of-sale purchases. The card may be used at any ATM location accepting Cirrus and all other regional networks.
2. Shazam (Debit Card) Agreement and Disclosure Statement.
a.) 24 hour Banking Card at ATMs: The ATM portion of your Shazam card may be used at designated ATMs for cash withdrawals, inquiries to account or deposits and transfers just as you would use your ATM card described above. The Shazam card may also be used at certain merchant locations for purchases where point of sale is available. Simply enter your PIN (Personal Identification Number) to debit funds directly from your checking account or savings account. All fees and conditions apply.
b.) Shazam Card: In addition to the uses described in (a) above, your Shazam card may be used for purchasing goods at any merchant displaying the VISA logo. Purchases made at merchant locations must come from your checking account.
c.) Limitations on Cash Withdrawal: You may not use your card for a transaction that would cause the outstanding balance of any designated account to be less than zero, unless the account has been previously linked to a Baylake Bank Personal Reserve Account (PRA). We are not required to complete a transaction which would overdraw your account, however, if we do, you agree to pay us any excess amount or improperly withdrawn or transferred amount immediately upon our request. We may stop or limit electronic transfers from your account at any time, if it is necessary to maintain or restore the security of the system or of your account. The following limitations apply for your Baylake Bank Shazam Card:

• The cash withdrawal limit is $300 (off-line) and $600 (on-line) per calendar day at any ATM.
• The Point of Sale limit for Shazam ranges from $500 (off-line) to $1000 or higher if approved by the bank (on-line) per day, not to exceed the available balance.
• The merchant may be required to obtain an authorization from us for any transaction over a certain dollar amount. The available balance in your primary account will be reduced by the amount of any transaction for which the merchant received authorization from us, even if the documentation evidencing the transaction has not yet been received or processed by us. When the document has cleared through us, any "hold" placed on your account for the amount of the transaction will be released and your primary account will be debited for the amount of transaction. You agree that we are not responsible if we do not authorize or if we dishonor other POS, ATM or check transactions drawn on your primary checking account while such a hold is placed on your account.

d.) Each time you use your Shazam card:

• At any 24-hour ATM, you will receive a receipt upon request.
• At POS locations, you may receive an imprinted sales slip.
• Your monthly checking account statement will show all card transactions.

If Your Shazam Card is Lost or Stolen: Immediately contact Baylake Bank during regular business hours at 1-800-267-3610 or Shazam (weeknights or weekends) at 1-800-383-8000.
3. Telebanc is an electronic method of access provided solely to Baylake Bank customers using the telephone to make account inquires, transfer funds from one of your own accounts to another, make a loan payment from your deposit account to a loan account at Baylake or to obtain rates. The system does not allow you to make electronic transfers to third persons or authorize any other person to make deposits or withdrawals from your accounts. Access is limited to you as an account holder and you are responsible for the user code and password. Carefully protect your secure access at all times and change your password frequently.
4. eBanc, the Baylake Bank interactive Web Site, provides internet banking 24/7 at www.baylake.com. Using this site, Baylake customers may access their own accounts, transfer funds between their accounts, make loan payments at Baylake Bank and pay bills to third parties. All disclosures are posted on the site and must be reviewed and agreed to prior to use and activation. In addition, in order to utilize the Baylake Bank Bill Pay System, customers must complete a Bill Pay Disclosure and Agreement form.
5. Electronic Check Conversion Checks. If we process your check which has been scanned by a merchant and converted to an electronic item only, it will be covered under these rules for electronic funds transfers.

All general and specific disclosures, agreements and fees as presented earlier in this section apply. Also see "Baylake Bank Fee Schedule". Contact your nearest Baylake Financial Center to activate use of any of the above services.