Online Banking Agreement & Disclosure

What this Agreement covers

This Southern First Bank Online Banking Agreement and Disclosure ("Agreement") describes your rights and obligations as a user of the Online Banking service. This service provides Southern First Bank clients access to perform a number of banking functions through the use of a personal computer or mobile access device, such as a smart phone or tablet, on accounts linked to the service. It also describes the rights and obligations of Southern First Bank ("Bank").

Please read this Agreement carefully. By requesting and using the Online Banking services, you agree to comply with the terms and conditions of this Agreement.

Relation to other Agreements

Your use of Online Banking services may also be affected by the agreements between us for your linked Southern First accounts. When you link an account to Online Banking, the agreements that you already have with us do not change. When you use Online Banking services to access a credit account, you do so under the terms and conditions we provided to you in the agreement and disclosure for the credit account. You should review those agreements for any applicable fees, for limitations on the number of transactions you can make, and for other restrictions that might impact your use of an account with Online Banking.

I. Definitions

The following definitions apply in this Agreement: "Authorized Representative" refers to a person with authority (with respect to the account); "Bill Payment" is the online service that enables the scheduling of bill payments using a personal computer; "ISP" refers to your Internet Service Provider; "Online Banking" is the internet-based service providing access to your Bank account(s); "Online Account" means the Bank account from which you will be conducting transactions using a Service; "Password" is the customer-generated code selected by you for use during the initial sign-on, or the codes you select after the initial sign-on, that establishes your connection to the Service; "PC" means your personal computer which enables you, with the Internet browser and ISP, to access your Online Account; ''Time of day" references are to Eastern time; "User ID" is the Bank-generated identification code assigned to you for your connection to the Service; "We", "us", or "Bank" refer to Southern First Bank which offers the Services and which holds the accounts accessed by the Services; and "You" or "your" refers to the owner of the account or the authorized representative.

II. Schedule of Fees

The Bank does not charge a fee for the use of Online Banking Service, except as otherwise provided in this Agreement or your applicable account agreements and schedule of fees.

III. Access to Services

When you request the use of the Online Banking Service, the Bank will provide instructions on how to access and use the service. You will need to have an Internet-enabled device, ISP, User ID and User Password to access Online Banking. If you want to limit the accounts that are linked or the activity level assigned to an account, please contact your Client Experience Officer to discuss the available options. For businesses that utilize Cash Management services, please refer to the Cash Management Services Agreement.

Online Banking is available 24 hours a day, 7 days a week. However, availability of the Services may be suspended for brief periods of time for purposes of maintenance, updating and revising the software.

For purposes of transactions, the Bank's business days are Monday through Friday, excluding Federal holidays and weekends. All transactions which are requested on Saturdays, Sundays, or holidays on which the Bank chooses to remain closed, will be processed on the Bank's next business day. The Bank's business day begins at 8:30 a.m.

Note: If you access Online Banking through Southern First Bank's mobile banking applications ("Mobile Banking Applications ("Mobile Banking Apps"), www.southernfirst.com ("Mobile Web") Personal Financial Management Software, or through an indirect service, all of the features of Online Banking may not be available. Please refer to this Agreement, your applicable account agreement or fee schedule for information on fees for optional services.

IV. Online Banking for Consumer and Business

A. Account Access. You may have online access to any or all of your Bank accounts. There is no restriction on the types of accounts you may access: checking, savings, certificates of deposit, including IRAs, or loan accounts.

B. Transfer of Funds. In addition to viewing account information, you may use Online Banking to conduct transfer of funds. You may make one-time transfers or schedule future or recurring transfers such as transfers to make loan payments. You may transfer funds between your linked Southern First accounts on either a one-time or recurring basis, including as a payment to a linked installment loan or mortgage.

REG D Notice: Federal regulations require us to monitor excessive transactions on savings or money market accounts. As described in the Truth in Savings disclosure provided to you at the time your account was opened you are entitled to six transfers or withdrawals (or a combination of six transfers and withdrawals) per statement cycle to another bank account of yours or to a third party when transaction are made by means of preauthorized, automatic transfer, automatic sweep for overdraft protection, or telephone transfer, whether initiated by check, draft, point-of-sale transactions, or debit card transactions, if applicable, or similar order to a third party. This includes online banking account transfers and bill payments. If you exceed the number of permitted transactions per cycle, an excessive activity fee may apply.

If you need to access your account more frequently, the number of withdrawals allowed per statement cycle is unlimited when made by mail, messenger, automated teller machine (ATM), or in person, or when such withdrawals are made by telephone (via check mailed to the depositor).

Accordingly, if the transfer limitations are continuously exceeded in a 3-month period of the preceding 12-month period, we are required to convert the account to a non-interest bearing account or lower interest bearing account, if eligible.

C. Additional Services. New services may be introduced for Online Banking from time to time. The Bank will notify you of the existence of these new services. By using these services when they become available, you agree to be bound by the rules that will be made available to you concerning these services.

D. Account Alerts. Account alerts allow you to choose optional alert messages for your accounts. Each account alert has different options available, and you will be asked to select from among these options upon activation of an account alert. We may add new alerts from time to time, or cancel old alerts. We may notify you when we cancel alerts, but are not obligated to do so. Alerts may be sent to the primary email address for Online Banking. SMS text messaging is available with Consumer Online Banking. If you change your email address or phone number, you are responsible for informing us of that change.

We do our best to deliver alerts in a timely manner with accurate information, however, alerts may be delayed or prevented by factors that are beyond our control (such as system failure or misdirected delivery). We cannot guarantee the delivery or accuracy of alerts, as the content of the alert may be outdated by the time you review or receive the alert. This could be due to other activity on your account or delays in sending data among various systems. You agree that we are not liable for any delays, failure to deliver, or misdirected delivery of any alert; for any errors in the content of an alert or for any actions taken or not taken by you or a third party as the result of an alert.

Because alerts are not encrypted, we will never include your full account number. However, alerts may include your name and some information about your accounts. Depending upon the type of alert, information such as your account balance, transaction information, or the due date for a loan payment may be included. Anyone with access to your alerts will be able to view the contents of these messages.

V. Statements

You will receive your regular account statement either monthly or quarterly, depending on the type of account. These statements are available to you electronically within Online Banking on a rolling 18 month period.

VI. Use of Your Security Password

You are responsible for keeping your password and Online Account information confidential. In order to protect yourself against fraud, you should adhere to the following guidelines:

• Do not give out your account information, Password, or User ID
• Do not leave your PC unattended while you are using the Bank's Online Banking Site
• Never leave your account information within range of others
• Do not send privileged account information (account number, Password, etc.) in any public or general email system

If you believe your password has been lost or stolen, or if you suspect any fraudulent activity on your account, call the Bank immediately at 877-679-9646 between the hours of 8:30 a.m. to 5:00 p.m., Monday through Friday. Telephoning the Bank is the best way of minimizing your losses and liability. (See Sections X and XI)

If you believe your Password has been lost or stolen, please use the Password change feature within the Online Banking section of the website to change your Password. We recommend you follow all guidelines for creating passwords. Remember, the most secure passwords involve numbers and letters, upper and lower case, numbers, and punctuation.

A. Protecting Your User Logon Credentials

You agree that we may send notices and other communications, to the current address shown in our records, whether or not that address includes a designation for delivery to the attention of any particular individual. You further agree that we will not be responsible or liable to you in any way if information is intercepted by an unauthorized person, either in transit or at your place of business. You agree to: 1) keep your user logon credentials secure and strictly confidential 2) instruct each person to whom you have authorized to have user logon credentials that he or she is not to disclose it to any unauthorized person; and 3) immediately notify us and select a new user logon credentials if you believe your user logon credentials may have become known to an unauthorized person.

Southern First Bank will have no liability to you for any unauthorized payment or transfer made using your user login credentials that occurs before you have notified us of possible unauthorized use and we have had a reasonable opportunity to act on that notice. We may suspend or cancel your user logon credentials even without receiving such notice from you, if we suspect your user logon credentials is being used in an unauthorized or fraudulent manner. Southern First Bank will have no liability for such suspension or cancellation.

B. Acknowledgment of Commercially Reasonable Security Procedures

By using Online Banking, you acknowledge and agree that this Agreement sets forth security procedures for electronic banking transactions that are commercially reasonable. You agree to be bound by 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 had a reasonable opportunity to act on such notice).

C. 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 that is less than the amount per your instructions, unless otherwise required by law, our liability shall be limited to interest on the amount that 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 will we be liable to both parties, and our payment to either party will fully discharge any obligation to the other. If we make a payment or transfer in an erroneous amount that 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 will 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 Southern First 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 Southern First Bank be liable to you for special, indirect or consequential damages including, without limitation, lost profits or attorney's fees, even if we are advised in advance of the possibility of such damages.

VII. Electronic Mail (Email)

If you send the Bank an email message, the Bank will be deemed to have received it on the following business day. You should not rely on email if you need to report an unauthorized transaction from one of your accounts or if you need to stop a payment that is scheduled to occur.

NOTE: Email transmissions outside of the Online Banking site are not secure. We advise you not to send us or ask for sensitive information such as account numbers, password, or account information, etc. via any general or public email system. If you wish to contact us electronically, please use the Message Center provided in our Online Banking site. Use this secure form to email the Bank regarding inquiries about an electronic funds transfer error resolution, reporting unauthorized transactions or contacting the Bank regarding other concerns of a confidential nature. We will never contact via email and ask for your Online Banking logon credentials.

VIII. Linked Accounts

All accounts with the Bank that you enroll in a service will be linked by the tax identification numbers of the persons authorized to access the account. The linked accounts will appear together without regard to the ownership of the accounts. For example, if an authorized user of a linked account accesses the Service, that authorized user will be able to view and access at a single time the following accounts:

• the accounts of the business for which that person is an authorized user
• the accounts of any other business for which that person is an authorized user
• any consumer accounts for which the person is a co-owner or authorized signer

IX. Electronic Fund Transfer (review for policy)  Provisions for Consumer Accounts (see Section X for Business Accounts)

A. Applicability. These provisions are only applicable to online electronic fund transfers that credit or debit a consumer's checking, savings or other asset account and are subject to the Federal Reserve Board's Regulation E (an "EFT"). When applicable, the Bank may rely on any exceptions to these provisions that are contained in Regulation E. All terms that are not defined in this Agreement, but which are defined in Regulation E shall have the same meaning when used in this section.

B. Your liability. The following determines your liability for any unauthorized EFT or any series of related unauthorized EFTs:

1. Generally, tell us AT ONCE if you believe your card and/or code has been lost or stolen, or if you believe an electronic funds transfer has been made without your permission using information from your check. Telephoning the bank is the best way of keeping your possible losses down. If you notify the Bank within 2 business days after your password was lost or stolen, your liability will not exceed $50.00 or the amount of the unauthorized EFTs that occur before notification, whichever is less.

2. If you fail to notify the Bank within 2 business days after your password was lost or stolen, and we can prove we could have stopped someone from using your card and/or code without your permission if you had told us, your liability will not exceed the lesser of $500.00 or the total of:

a. $50.00 or the amount of unauthorized EFTs that occur within the 2 business days.

b. The total of authorized EFTs which occur during the 2 days before notification to the Bank, provided the Bank establishes that these EFTs would not have occurred had the Bank been notified within that 2-day period.

3. You must report an unauthorized EFT that appears on your periodic statement, no later than 60 days of transmittal of the statement to avoid liability for subsequent transfers. Your liability will not exceed the amount of the unauthorized EFTs that occurred within the 60-day period. You may also be liable for the amounts as described in sections 1 and 2 above.

If you tell us verbally, we will 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 (20 business days if the transfer involved a new account) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days (90 days if the transfer involved a new account, a point-of-sale transaction, or a foreign-initiated transfer) 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. Your account is considered a new account for the first 30 days after the first deposit is made, unless each of you already has an established account with us before this account was opened.

We will tell you about 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.

4. You may notify the Bank by telephone or in writing. Notification by general email to report an unauthorized transaction is not secure and therefore not advised.

C. Telephone Numbers and Addresses. In case of errors or questions regarding an Online Banking or Bill Payment transaction, please contact the bank by any of the following methods:

• Providing the information in person to any member of our Client Services team at any office location
• Calling us at: 877-679-9646
• Send written notification to the following address:

Southern First Bank
Attn: Client Services
PO Box 17465
Greenville, SC 29606

We must hear from you at the telephone number or address, listed above, no later than 60 days after we sent you the FIRST statement on which the problem or error appeared. We will need:

1. Your Name and account number.

2. Description of 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 additional information.

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

X. Business Accounts (see Section IX for Consumer Accounts)

If you are a business, any authorized user of your business is authorized on such terms, conditions, and agreements as we may require to:

• enter into this Agreement, as amended from time to time
• access each account of yours in any manner and for any purpose available through the Service, whether now available or available at some time in the future
• use any Online Banking service in any manner and for any purpose available through the Service, whether now available or available at some time in the future

XI. Term and Termination

A. Term. This agreement will become effective on the Effective Date and shall remain in effect until termination in accordance with the following provisions.

B. Termination for Cause. To terminate this Agreement, you must notify the Bank and provide your:

a. Name

b. Address

c. The Service(s) you are discontinuing, and

d. The termination date of the Service(s).

When a Service is terminated, any prescheduled payments or transfers made through Online Banking will also be terminated. You may contact the bank by any of the following methods:

• By providing the information in person to any member of our Client Services team at any office location
• By calling us at: 877-679-9646
• By notification in writing mailed to the following address:

Southern First Bank
Attn: Client Services
PO Box 17465
Greenville, SC 29606

XII. Liability

A. Our Liability. In addition to the provisions above, this section explains our liability to you only to the extent that any other agreements, notices, or disclosures have not separately disclosed our liability. In no event, shall we be liable to you for failure to provide access to your Online Banking or Bill Payment service accounts. Unless otherwise required by applicable law, we are only responsible for performing the Online Banking and Bill Payment services as delineated in this Agreement. We will be liable for the amount of any material losses or damages incurred by you and resulting directly from our gross negligence. We will not be liable to you in the following instances:

1. If through no fault of the Bank, you do not have enough money in your account to make the transfer.

2. If circumstances beyond our control (such as fire, flood, power outage, equipment or technical failure or breakdown) prevents the transfer despite reasonable precautions that we have taken.

3. If there is a hold on your account, or if access to your account is blocked, in accordance with banking policy.

4. If your funds are subject to a legal proceeding or other encumbrance is restricting the transfer.

5. If your transfer authorization terminates by operation of law.

6. If you believe someone has accessed your accounts without your permission and you fail to notify the bank immediately.

7. If you have not properly followed the instructions on how to make a transfer including in this Agreement.

8. If we have received incomplete or inaccurate information from you or a third party involving the account or transfer.

9. If we have a reasonable basis for believing that unauthorized use of your password or account has occurred (or may be occurring).

10. If you default under this Agreement, the deposit account agreement, a credit agreement, or any other agreement with us, or if we or you terminate this Agreement.

IN NO EVENT SHALL WE HAVE ANY LIABILITY TO YOU OR ANY THIRD PARTY FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM OR ARISING OUT OF THIS AGREEMENT.

B. Indemnification. You agree to indemnify, defend and hold us, our affiliate companies, directors, officers, employees and agents harmless against any third-party claim, demand, suit, action or other proceeding and any expenses related to an Online Banking or Bill Payment account.

C. Third Parties. We are not liable for any loss or liability resulting from any failure of your equipment or software, or that of an internet service provider such as Google or Microsoft Edge, by an internet access provider, or by an online service provider, nor will we be liable for any direct, indirect, special, or consequential damages resulting from your access to or failure access an Online Banking or Bill Payment account.

D. Virus/Malware/Spyware Protection. The Bank is not responsible for any electronic virus or viruses that you may encounter. We suggest that you routinely scan your PC or mobile device using a virus protection product. Undetected virus(es)/Malware/Spyware may corrupt and destroy your programs, files, and your hardware or may provide unauthorized access to your accounts.

Recommended best practices for Consumer Online Banking:

User ID and Password Guidelines:

• Create a "strong" password with at least 8 characters that includes a combination of letters and numbers
• Change your password frequently
• Never share username and password information
• Avoid using an automatic login feature that saves usernames and passwords

General Guidelines:

• Do not use public or other unsecured computers for logging into Online Banking
• Check your last login date and time, and transfer history every time you log in
• Review account balances and detail transactions regularly (preferably daily) to confirm payment and other transaction data and immediately report any suspicious transactions to the Bank
• Whenever possible, use Bill Pay instead of checks to limit account number dissemination exposure and to obtain better electronic record keeping
• Take advantage of and regularly view system alerts; examples include balance alerts and transfer alerts
• Don't use account numbers, your Social Security number, or other account or personal information when creating account nicknames or other titles
• Review historical reporting features of your Online Banking application on a regular basis to confirm payment and other transaction data
• Never leave a computer unattended while using Online Banking

Online Payments, Account Transfer & Account Data:

• When you have completed a transaction, ensure you log off to close your computer connection
• Reconcile by carefully monitoring account activity and reviewing all transactions daily
• Review historical and audit reports regularly to confirm transaction activity
• Utilize available alerts for funds transfer activity

Recommended best practices for Business Online Banking:

User ID and Password Guidelines:

• Create a "strong" password with at least 8 characters that includes a combination of letters and numbers
• Passwords must be changed every 90 days
• Never share username and password information
• Avoid using an automatic login feature that saves usernames and passwords

General Guidelines:

• Do not use public or other unsecured computers for logging into Online Banking
• Check your last login date and time, and transfer history every time you log in
• Review account balances and detail transactions regularly (preferably daily) to confirm payment and other transaction data and immediately report any suspicious transactions to your financial institution
• Whenever possible, use Bill Pay instead of checks to limit account number dissemination exposure and to obtain better electronic record keeping
• Take advantage of and regularly view system alerts; examples include balance alerts, transfer alerts, password change alerts, ACH Alerts (for Cash Management users) and Wire Alerts (for Cash Management users)
• Don't use account numbers, your Social Security number, or other account or personal information when creating account nicknames or other titles
• Review historical reporting features of your Online Banking application on a regular basis to confirm payment and other transaction data
• Never leave a computer unattended while using Online Banking

Online Payments & Account Data

• When you have completed a transaction, ensure you log off to close your computer connection
• Reconcile by carefully monitoring account activity and reviewing all transactions daily

Account Transfer

• Use limits provided for monetary transactions
• Review historical and audit reports regularly to confirm transaction activity
• Utilize available alerts for funds transfer activity

ACH (Automated Clearing House Batches)

• Use pre-notification transactions to verify account numbers within your ACH payments are correct
• Use limits for monetary transactions
• Review transaction reporting regularly to confirm transaction activity
• Utilize available alerts for ACH activity

Wire Transfers

• Use limits provided for monetary transactions
  
• Review historical and audit reports regularly to confirm transaction activity
  
• Utilize available alerts for wire transfer activity

Administrative Users

• Limit administrative rights on users' workstations to help prevent the inadvertent downloading of malware or other viruses
• Dedicate and limit the number of computers used to complete Online Banking transactions; do not allow Internet browsing or email exchange and ensure these computers are equipped with the latest versions and both anti-virus and anti-spyware software
• Delete online user IDs as part of the exit procedure when employees leave your company
• Assign dual system administrators for online Cash Management Services. Dual system administrators use more than one person's login, access credentials, and a separate computer for initiating and approving transactions
• Use multiple approvals for monetary transactions and require separate entry and approval users
• Establish transaction dollar limits for employees who initiate and approve online payments such as ACH batches, wire transfers, and account transfers

XIII. General Terms and Conditions

A. Bank Agreements. In addition to this Agreement, you and the Bank agree to be bound by and comply with the requirements of the agreements applicable to each of your Online Accounts. Your use of the Online Banking Service or the Bill Payment Service is your acknowledgment that you have received these agreements and intend to be bound by them. You should review other disclosures including the charges that may be imposed for electronic funds transfers or the right to make transfers listed in the fee schedules accompanying those disclosures and the fee schedule contained in this Agreement. We will automatically deduct the fees related to this Service from your primary Account each month. In the event of a conflict between this agreement and any other agreement, the other agreement shall control over this agreement.

B. Changes and Modifications. The Bank may modify the terms and conditions applicable to the Services from time to time. We may send any notice to you via email, and you will have to be deemed to have received it 3 days after it is sent. The revised terms and conditions shall be effective at the earliest date allowed by applicable law. We reserve the right to terminate this Agreement and your use of the Services in whole or in part at any time without prior notice.

C. Assignment. We may assign this Agreement to an affiliate of the Bank or any successor in interest in the event of a merger, reorganization, change of control, acquisition, or sale of all or substantially all assets of the business to which this Agreement is related without the other party's prior written consent.

D. Notices. Unless otherwise required by applicable law, any notice or written communication given pursuant to this Agreement may be sent to you electronically.

E. Disclosure of Information. We will only disclose information to third parties about your account or transfers you make under the following circumstances:

• where it is necessary for the provision of Online Banking and for completing transfers
• in order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant
• in order to comply with government or court orders, or other reporting requirements
• if you give us your permission
• to the Bank affiliated companies

F. Governing Law. This Agreement is governed by the laws of the State of South Carolina and applicable federal law.

Bill Payment Agreement Disclosure

What this Agreement covers

This Southern First Bank Bill Payment Agreement and Disclosure ("Agreement") describes your rights and obligations as a user of the Bill Pay service. This service provides Southern First Bank clients access to perform banking functions through the use of a personal computer or mobile access device, such as a smart phone or tablet, on accounts linked to the service. It also describes the rights and obligations of Southern First Bank ("Bank").

Please read this Agreement carefully. By requesting and using the Bill Pay services, you agree to comply with the terms and conditions of this Agreement.

Relation to other Agreements

Your use of Bill Pay services may also be affected by the agreements between us for your linked Southern First accounts. Use of this service is to direct Southern First Bank to make payments from your designated checking account to payees you choose in accordance with this agreement. The Terms and Conditions of this agreement are in addition to the Account agreements, disclosures, and other documents in effect from time to time that govern your account.

I. Definitions

The following definitions apply in this Agreement: "Authorized Representative" refers to a person with authority (with respect to the account); "Bill Payment" is the online service that enables the scheduling of bill payments using a personal computer; "ISP" refers to your Internet Service Provider; "Online Banking" is the internet-based service providing access to your Bank account(s); "Online Account" or “Payment Account” means the Bank account from which you will be conducting transactions using a Service; "Password" is the customer-generated code selected by you for use during the initial sign-on, or the codes you select after the initial sign-on, that establishes your connection to the Service; "PC" means your personal computer which enables you, with the Internet browser and ISP, to access your Online Account; ''Time of day" references are to Eastern time; "User ID" is the Bank-generated identification code assigned to you for your connection to the Service; "We", "us", or "Bank" refer to Southern First Bank which offers the Services and which holds the accounts accessed by the Services; and "You" or "your" refers to the owner of the account or the authorized representative.

II. Schedule of Fees

The Bank does not charge a fee for the use of the Bill Pay Service, except as otherwise provided in this Agreement or your applicable account agreements and schedule of fees. A service charge may be assessed if you request one or more of the services listed below. Please contact your Client Experience Officer or visit a Southern First Bank office for details. There will not be a charge for any item that is deemed an error conducted by Southern First Bank. Additional charges for a customer requested service may include:

• Return Check due to Subscriber Error
• Check copy mailed or Faxed to Subscriber or Bank
• Check copy mailed to a payee
• Stop Payment
• Return ACH items due to Subscriber or Bank Error
• Overnight carrier delivery charge (per item)
• Research fee for items greater than 18 months old

III. Access to Bill Payment Services

Access to Bill Payment services is an additional feature within Online Banking. No additional sign on information is required.

You will need to have an Internet-enabled device, ISP, UserID and User Password to access Online Banking. If you want to limit the accounts that are linked or the activity level assigned to an account, please contact your Client Experience Officer to discuss the available options. For businesses that utilize Cash Management services, please refer to the Commercial Online Banking Agreement.

Note: If you access Online Banking through Southern First Bank’s Mobile Banking Applications, Website-www.southernfirst.com, Financial Management Software, or through an indirect service, all of the features of Online Banking may not be available, including, but not limited to, Bill Pay. Please refer to this Agreement, your applicable account agreement or fee schedule for information on fees for optional services.

A. Description of Bill Payment Service. If you are a Southern First Bank client with a deposit account, you may use the Bill Payment service to direct payments from your designated Bill Payment Account to third parties you wish to pay. Through the Bill Payment Service, you can pay bills from your Bill Payment account to businesses or individuals.

The Bank will process payments on the business day you designate the bill to be processed (Monday through Friday, except Federal holidays), provided the payment request is received prior to the cut-off time of 4:00 PM EST. Bill Payment requests received after the business day cut-off time or at any time on a non-business day will be processed the next business day. The Bank reserves the right to change the cut-off time by providing you notice of the change.

For recurring payment requests: If you designate a processing date of the 28th through the 31st of a month, processing will be initiated on the last calendar day of the month. Otherwise, recurring payment requests will be processed on the dates you have designated, unless such date falls on a non-business day resulting in your payment being processed on the next business day.

All payments you make will be deducted from the checking account that you designate as your Funding Account for the Bill Payment Service. Any payments you wish to make through this Service must be payable in U.S. dollars to a payee located in the continental United States. We reserve the right to restrict types of payees to whom payments may be made using the Service from time to time.

You should not use the Bill Payment Service to make payments to settle securities purchases, payments to interest bearing accounts, tax payments, or court ordered payments. Payments for these payees will be your sole responsibility if delayed or improperly processed or credited.

B. How to setup Payees and Payments. If you would like to add a new Payee, you can submit your request by entering a payee name in the “Pay someone new:” field or click the “Add” button. The Bill Pay service also has a “How Do I…”, “Terms” and “FAQs” links at the bottom of the page with informative information. Please contact your Client Experience Officer or visit a Southern First Bank office for additional instructions on use of the service.

C. Scheduling Payments. Bill Payments are processed on the day you select as a Scheduled Payment Date. When scheduling Bill Payments, you must select a Scheduled Payment Date that is no later than the recommended time frame for delivery on Check payments (5 business days) or electronic payments (2 business days) before your actual due date. If the actual due date falls on a non-Business Day, you must select a scheduled payment date that adds a minimum of at least 1 business day, more days are necessary for multi-day federal holidays, to the recommended time frame for delivery of check and electronic payments. Scheduled payment dates and recommended delivery times should be prior to any late date or grace period. The Service will not be responsible for any finance charge or penalties incurred for late payments that were due to invalid information entered by the user such as payee address or user account number. The Service will be responsible for any changes to Payees made in error by the Service.

Due to circumstances beyond our control, some Payees may take longer to post payments than others. We suggest sending your first payment with additional time to post before your bill’s due date. After your first payment has posted, you will then have a better understanding of the amount of time to allow for each payment.

Funds must be available in your Bill Payment Account on the scheduled process date. If the date you schedule a payment to be initiated falls on a non-business day (Saturday, Sunday, or Federal holiday), funds must be available in your Bill Payment Account the following business day (e.g. Monday).

After funds are withdrawn from your Bill Payment Account to make a payment, we may make the payment either by transferring funds electronically to the payee or by mailing the payee a check. You may choose to schedule payments to recur in the same amount at regular weekly, monthly, or semi-monthly intervals. When you create a new payee in the Bill Payment Service, it may take 2 business days to set up the payee to receive payments. You should schedule a payment to a new payee at least 10 business days before any payment due date, to allow us time to set up the payee and verify information about your account with the payee.

• For all subsequent payments: you agree to allow at least 4 to 10 business days between the date you schedule a payment to be initiated and the payment due date (that is, the due date shown on your invoice or provided in your agreement with the payee, not considering any applicable grace period)

• If the payment is an Automatic Clearing House (ACH) electronic payment it may take up to 4 business days to reach the payee. However, if the company or person that you are paying cannot accept an electronic payment, the Bill Payment Service will send a check that may take up to 10 business days

• If you do not follow these time frames, you will be fully responsible for all late fees, finance charges or other actions taken by the payee. If you schedule your payment and follow all instructions provided, but the payment is not received by the payee in a timely manner, the Bank will work with the payee on your behalf to reverse any late fees or charges

C. No Duty to Monitor Payments. The Bank is responsible for exercising ordinary care in processing and sending payments upon your authorization in accordance with this Agreement. The Bank will not be liable in any way for damages you incur for any of the following reasons:

• insufficient funds in your Bill Payment Account to make the payment on the processing date
• delays in mail delivery
• changes to the payee's address or account number unless we've been advised of the change in advance
• the failure of any payee to correctly account for or credit the payment in a timely manner
• any other circumstances beyond the control of the Bank

If the session during which you schedule a payment or transfer ends by 4:00 PM EST, the Bank will be considered to have received it on that day. Otherwise, it will be considered received on the following business day. For all entries made using the Services, the time recorded by the Online Banking Service will be considered the official time of the transaction. If your Bill Payment Account does not have sufficient funds to make a payment as of the date the payment is debited to your account, one attempt will be made to complete the transaction. The Bank shall have no obligation or liability if it does not complete a payment because there are insufficient funds in your account to process a payment. In all cases, you are responsible for making alternate arrangements for the payment or reschedule the payment through the Service. In the case of fixed payments, only the payment currently scheduled will be impacted. Fixed payments scheduled for future dates will not be affected.

D. Cancel or Change Payment Instructions. Payments must be changed or canceled using the Service prior to 4:00 PM EST on the business day the transaction is scheduled to be initiated. If you ask us to cancel a payment after it is issued and we agree to do so, we may charge you a stop payment fee. Stop payment orders whether written, or electronic, will be in effect for a period of 6 months. Verbal requests are in effect for a period of 14 days. After the 14 days the verbal stop payment will terminate. After 6 months, the written or electronic stop payment will terminate and must be renewed in order to continue in effect. The Bank may pay any item that is presented following the lapse of any stop payment order.

The Bank is not responsible if a Bill Payment cannot be processed due to incomplete, inaccurate, or outdated information provided by you regarding a Payee or if you attempt to pay a Payee that is not on your Authorized Payee list.

E. No Signature Required. When any payment or other online Service generates items to be charged to your account, you agree that we may debit your Bill Payment account without requiring your signature on the item and without prior notice to you.

F. Multiple Person Bill Payment Accounts. If more than one person has access to a Bill Payment account, each person may individually enroll in the Bill Pay service. Each enrolled person needs a unique password but may choose to use the same payee list. Each individual may terminate her/his enrollment in the Bill Payment service without affecting the Service for any other person enrolled in that Bill Payment account. However, any enrolled person may terminate the Bill Payment service that will terminate the service for all enrolled persons on that Bill Payment account.

IV. General Terms and Conditions

A. Bank Agreement. In addition to this Agreement, you and the Bank agree to be bound by and comply with the requirements of the agreements applicable to each of your Payment Accounts. Your use of the Bill Payment Service is your acknowledgment that you have received these agreements and intend to be bound by them. You should review other disclosures including the charges that may be imposed for electronic funds transfers or the right to make transfers listed in the fee schedules accompanying those disclosures and the fee schedule contained in this Agreement. We will automatically deduct the fees related to this Service from your Bill Payment Account each month. In the event of a conflict between this agreement and any other agreement, the other agreement shall control over this agreement.

When you schedule a payment, you authorize Southern First to debit your payment account and remit funds on your behalf. You certify that your payment account is an account from which you are authorized to make payments and any payment you make will be debited from this account. You also authorize Southern First the credit of returned payments from using the Bill Payment Service.

You agree to have available and collected funds on deposit in the account you designate in amounts sufficient to pay for all Bill Payments requested, as well as any other payment obligations you have with the Bank. The Bank reserves the right, without liability, to reject or reverse a Bill Payment if you fail to comply with this requirement or any other terms of this agreement. If you do not have sufficient funds in the Account, and the Bank has not exercised its right to reverse or reject a Bill Payment, you agree to pay for such payment obligations on demand. You further agree the Bank, at its option, may charge any of your accounts with the Bank to cover such payment obligations.

Any Bill Payment can be changed or canceled, provided you access the Service prior to the cut-off time of 4:00 PM EST on the business day prior to the business day the Bill Payment is going to be initiated.

Southern First uses a third party to provide this service. The third-party payment processor that the bank has contracted with to provide the Service to its customers is not affiliated with or a part of Southern First Bank.

In using this Service, you understand that the Service and/or the United States Postal Service may return payments for various reasons, such as, but not limited to, the Service account number is not valid; the Service is unable to locate account; or Payee account is paid in full. The Service will use its reasonable efforts to research and correct the returned payment or void the payment and credit your Payment Account. You may receive notification from the Service.

B. Service Agreement. The Bill Payment Service will incur no liability and a Service Guarantee shall be void if the Bill Payment Service is unable to complete any payments initiated because of the following:

1. You have not provided the Bill Payment Service with the correct payment account information, or the correct name, address, phone number, or account information for the Payee upon initiation of the payment.
2. Circumstances beyond the control of the Bill Payment Service (such as, but not limited to, fire, flood, or interference from outside force) prevents the proper execution of the transaction and the Bill Payment Service has taken reasonable precautions to avoid these circumstances.
3. The payment processing center is not working properly, and you know or have been advised by the Bill Payment Service about the malfunctions before you execute the transaction.
4. If at no fault of the Service, your account does not contain sufficient funds to complete the transaction, or the transaction would exceed the credit limit of your overdraft account.
5. You attempt to pay a Payee that is not on your authorized Payee list.

Provided that none of the foregoing circumstances are applicable, the Service will bear responsibility for any late payment related charges up to $50.00 should a Bill Payment post after its Due Date as long as the Bill payment was scheduled in accordance with the guidelines under the “Bill Paying Service.” The service will first attempt to have the fee waived at the payee and if unsuccessful the fee will be reimbursed up to $50.00.

C. Changes and Modifications. The Bank may modify the terms and conditions applicable to the Services from time to time. We may send any notice to you via email, and you will have to be deemed to have received it three days after it is sent. The revised terms and conditions shall be effective at the earliest date allowed by applicable law. We reserve the right to terminate this Agreement and your use of the Services in whole or in part at any time without prior notice.

D. Assignment. We may assign this Agreement to an affiliate of the Bank or any successor in interest in the event of a merger, reorganization, change of control, acquisition, or sale of all or substantially all assets of the business to which this Agreement is related without the other party's prior written consent.

E. Notices. Unless otherwise required by applicable law, any notice or written communication given pursuant to this Agreement may be sent to you electronically.

F. Disclosure of Information. We will only disclose information to third parties about your account or transfers you make under the following circumstances:

1. Where it is necessary for the provision of Online Banking and for completing transfers 
2. In order to verify the existence and condition of your account for a third-party, such as a credit bureau or payee.
   
3. In order to comply with government or court orders, or other reporting requirements.
   
4. If you give us your permission.
   
5. To the Bank affiliated companies.
   

G. Governing Law. This Agreement is governed by the laws of the State of South Carolina and applicable federal law.

Loan Payments

Except as otherwise provided in the Online Banking Agreement for Southern First Bank accountholders, the following disclosures apply to your use of Loan Payments via Online Banking.

To make a payment

You may use Online Banking to make payments to your Southern First mortgage loan, home equity line of credit or consumer loan from your checking, savings¹ or other transaction account. Payments may be mailed to the address shown on your statement, online, or at the Bank office.

Payments received before the local cut off time on any business day (Monday through Friday) will be credited to your account on the date of receipt. Payments received after the local cut off time, or on a non-business day, will be credited the next business day.

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

• Where it is necessary for completing transfers
• In order to comply with government agency or court orders
• If you give us your written permission

All questions regarding transactions made through the Bank’s website should be directed to Southern First Bank. The Bank is responsible for loan payments made through our Online Banking and for resolving any errors in transactions conducted through the site.

Transactions made by an external account will appear on the statement issued by your bank or other financial institution. It is recommended that you print and save the confirmation page when you make a payment.

To cancel or edit a payment

Consumer Online Banking – Go to the Pay and Transfer tab and select “Scheduled Loan Payments”. You may edit or delete any scheduled payment or a series (recurring) listed by clicking on the applicable edit or delete drop down box.   

Business Online Banking – Go to the Money Movement tab and select “Scheduled Requests”. Click the ellipsis and select edit request or edit schedule.

Fees

There is no charge for the service if payments are scheduled to be drafted from a Southern First checking, savings, or transaction account.

By using our Online Banking to pay your mortgage, home equity line of credit or other consumer loan, you agree that we may charge you a fee for any payment returned or rejected by your financial institution, subject to applicable law.

Applicable late charges or other fees on your account may apply if you schedule a payment to be processed after your grace period or your other financial institution does not process the payment due to insufficient funds or other reasons.

Billing Rights and Error Resolution

If you think your bank statement is incorrect or if you need more information about a transaction on your statement, please contact the bank by any of the following methods:

• By providing the information in person to any member of our Client Services team at any office location
• By calling us at: 877-679-9646
• By notification in writing mailed to the following address:

Southern First Bank
Attn: Client Services
PO Box 17465
Greenville, SC 29606

To direct inquiries or notice of errors about Electronic Funds Transfers (automatic teller transactions, direct deposits, pre-authorized debits, or debit card transactions) or to verify a scheduled pre-authorized deposit, telephone the bank at 877-679-9646 or write us at the address above. We will investigate your inquiry and correct any error promptly. If we take more than 10 business days to do this, we will re-credit your account for the amount in error, so that you will have use of the money during the time it takes to complete the investigation.

We must receive notice from you no later than 60 days after the mailing date of your first statement on which the error or problem appeared. You may telephone us but doing so will not preserve your rights.

In your letter, please provide the following information:

1. Your name and account number.
2. The dollar amount and date of the suspected error.
3. A description of the error and an explanation as to why you believe there is an error.

You do not have to pay any amount in question while we are investigating, but you are still obligated to pay the parts of your account that are not in question. While we investigate your question or claim, we cannot report you as delinquent or take any action to collect the amount you have questioned.

Supplement to Periodic Statement Line of Credit Accounts

Finance Charge

To figure your daily principal balance, we begin with your Line of Credit principal balance at the beginning of each day. Any credits or payments for that day are subtracted. Any new advances or other debits posted to your account that day are added. Any unpaid finance and late charges are excluded. This gives us your daily principal balance. Then we multiply your daily principal balance by the daily periodic rate to determine your PERIODIC FINANCE CHARGE for that day. The finance charges for each day of the billing cycle are added together to determine your PERIODIC FINANCE CHARGE for the billing cycle.

If you have any questions, please contact us at 1-877-679-9646.

¹Regulation D places a limit of 6 withdrawals or outgoing transfers per month from savings or money market accounts.