On April 6, 2001, B & L Bank and another local financial institution, Lafayette County Bank, a state chartered commercial bank, merged with the B & L Bank being the survivor.

In anticipation of the merger, a new bank building was constructed and occupied in March 2001, which is now the main banking facility located at 205 South 13th Street, Lexington, Missouri.

Lexington, Missouri, is located in Lafayette County on the southern bank of the Missouri river approximately 45 miles east of Kansas City, Missouri. Lexington, estimated population of 5,000, is the county seat. Lafayette County is predominantly rural and contains several small towns, although the western portions are becoming bedroom communities for commuters to jobs in the Kansas City metropolitan area. The Odessa office, located 15 miles southwest of Lexington, was constructed and opened in 2004. Odessa has a population of over 5,000 and is located on a major interstate highway, making it easily accessible to the Kansas City metropolitan area.

The principal lending activity of B & L Bank is the origination of conventional mortgage loans. Its deposit base is primarily from the communities it serves. It offers a full line of commercial banking products.

B & L Bank is owned by Lexington B & L Financial Corp. which until March 2003 was publicly traded on the NASDAQ symbol "LXMO." For copies of current financial information on Lexington B & L Financial Corp. see below.

Internet scammers casting about for people's financial information have a new way to lure unsuspecting victims: They go "phishing."

Phishing is a high-tech scam that uses spam or pop-up messages to deceive you into disclosing your credit card numbers, bank account information, Social Security number, passwords, or other sensitive information.

According to the Federal Trade Commission (FTC), phishers send an email or pop�up message that claims to be from a business or organization that you deaf with—for example, your Internet service provider (ISP), bank, online payment service, or even a government agency. The message usually says that you need to "update" or "validate" your account information. It might threaten some dire consequence if you don't respond. The message directs you to a website that looks just like a legitimate organization's site, but it isn't. The purpose of the bogus site? To trick you into divulging your personal information so the operators can steal your identity, run up bills or commit crimes in your name.

The FTC, the nation's consumer protection agency, suggests these tips to help you avoid getting hooked by a phishing scam:

• If you get an email or pop-up message that asks for personal or financial information, do not reply or click on the link in the message. Legitimate companies don't ask for this information via email. If you are concerned about your account, contact the organization in the email using a telephone number you know to be genuine, or open a new Internet browser session and type in the company's correct web address. In any case, don't cut and paste the link in the message.
• Don't email personal or financial information. Email is not a secure method of transmitting personal information. If you initiate a transaction and want to provide your personal or financial information through an organization's website, look for indicators that the site is secure, like a lock icon on the browser's status bar or a URL for a website that begins "https:" (the "s" stands for "secure"). Unfortunately, no indicator is foolproof; some phishers have forged a security icon.
• Review credit card and bank account statements as soon as you receive them to determine whether there are any unauthorized charges. If your statement is late by more than a couple of days, call your credit card company or bank to confirm your billing address and account balances.
• Use anti-virus software and keep it up to date. Some phishing emails contain software that can harm your computer or track your activities on the Internet without your knowledge. Anti-virus software and a firewall can protect you from inadvertently accepting such unwanted files. Anti-virus software scans incoming communications for troublesome files. Look for anti-virus software that recognizes current viruses as well as older ones; that can effectively reverse the damage; and that updates automatically. A firewall helps make you invisible on the Internet and blocks all communications from unauthorized sources. It's especially important to run a firewall if you have a broadband connection. Finally, your operating system (like Windows or Linux) may offer free software "patches" to close holes in the system that hackers or phishers could exploit.
• Be cautious about opening any attachment or downloading any files from emails you receive, regardless of who sent them.
• Report suspicious activity to the FTC. If you get spam that is phishing for information, forward it to [email protected]. If you believe you've been scammed, file your complaint at www.ftc,gov, and then visit the FTC's Identity Theft website at www.consumer.gov/idtheft to learn how to minimize your risk of damage from ID theft. Visit www.ftc,gov/spam to learn other ways to avoid email scams and deal with deceptive spam.

NOTE: The above information was provided by the Federal Trade Commission.

Additional information and practical tips for helping consumers to be "on guard" against Internet fraud, including tips to secure your computer and protect your personal information, can be found at www.onguardonline.gov. This website is a joint coalition between the federal government and the technology industry to help combat internet fraud and identity theft.

As a B & L Bank customer, you can rest assured that we will never ask you to verify private information via email. If you receive an email that appears to have originated from B & L Bank requesting your personal information, DO NOT RESPOND TO THE EMAIL. Instead, notify B & L Bank at 660-259-2247 and file a complaint at www.ftc.gov.

ACCEPTANCE OF TERMS: This Online Banking agreement (this "Agreement") contains the terms and enrollment form that govern your use of the 24-Hour Banking Online Internet Banking Service. In this Agreement we will use the words "Online Service" to refer to 24-Hour Banking Online Internet Banking Service. Upon accessing this site, you acknowledge that you will or have read and agree to abide by the terms and conditions described below. Your use and browsing of this site are at your own risk. Should you decide not to agree to the following terms and conditions, you should exit this site.

You may use a service provider to access your Eligible Accounts through the Internet. Other service functions are also available through this Internet access. The information and materials contained in these pages, and the terms, conditions and descriptions of the products and services that appear are subject to change and may be revised from time to time without prior notice. Your continued use of our 24-Hour Banking Online Service following any changes or revisions shall constitute your acceptance of such changes or revisions.

Use of this site is expressly conditioned on your acceptance of the following terms and conditions. This Agreement governs in conjunction with other agreements between us, including but not limited to your signature card, our rules governing deposit accounts, fee schedules, electronic funds transfer agreement and disclosure, loan agreement(s) and bill payments authorization and agreement. If the terms and conditions of this Agreement conflict with those contained in the other agreements between us, this Agreement controls. If you do not agree with any part of the terms and conditions in this Agreement, you must not use this site. Use by you and by any person authorized by you of this site indicates your agreement to these terms and conditions and any instructional material which we provide you regarding the Service.

Information about products and services described is for informational purposes only and should not be considered as an offer to make those products and services available to you. You may not be eligible for all of the products and services described. Your eligibility for any product and service is subject to final determination and acceptance by B & L Bank.

Nothing provided in the website is intended to provide legal, accounting, financial, or tax advice. You should consult your own professional advisor on such matters.

You are prohibited from posting or transmitting any unlawful, threatening, obscene, libelous, or otherwise offensive material.

DEFINITIONS: In this Agreement, the words "we," "us," and "our" refer to B & L Bank and any of our affiliates and their successors or assigns. "You" or "your" refers to the owner of an Eligible Account or an authorized representative. "Account," "accounts," and "eligible account" mean the account(s) tied to your customer identification access code used through our Online Banking Service to conduct banking transactions or bill payments. "Authorized representative" refers to a person with authority of any kind with respect to an Eligible Account or an Online Banking Transaction. "Electronic Fund" means ATM withdrawals, preauthorized transactions, point of sale transactions, transfers to and from your account using Online Service, including bill payments. "Business Days" means every Monday through Friday excluding holidays.

EQUIPMENT REQUIREMENTS: Online Service requires a personal computer ("PC") equipped with a modem which runs at a speed of at least 56K baud. To provide the highest degree of confidentiality and security, we require the use of browsers that provide encryption using a 128-bit key. You are responsible for acquiring and maintaining this equipment and software. It is recommended that you also acquire and maintain current Virus Protection software to protect your PC, software and data from computer "viruses" and other equipment or software problems and/or failures. The Bank is not responsible for any electronic virus or viruses that you may encounter. We encourage you to routinely scan your PC and and data storage devices using a reliable product. Undetected or unrepaired viruses may corrupt and destroy your programs, files and even your hardware. The Bank will not be responsible for any errors or failures from the malfunction or failure of your hardware or software.

ELIGIBLE ACCOUNTS:

You may use Online Service to perform any of the following services designated by you in the original application or subsequent application provided by you:

• To receive and download balance and transaction information from Eligible Accounts;
• To transfer funds between any authorized Eligible Accounts;
• To obtain loan account balance information;
• To make a loan payment through funds transfer between Eligible Accounts;
• To initiate a stop payment on a check;
• To order checks for your authorized accounts.

ACCESS TO ELIGIBLE ACCOUNTS: To use Online Service, you must have at least one account with us, access to Internet service, and an e-mail address. Once we have received your signed Enrollment Form, delivered in person to one of our offices or faxed to 660-259-2384 or mailed to B & L Bank, P.O. Box 190, Lexington, MO 64067, and verified your account information, we will send you, by postal mail, confirmation of our acceptance of your enrollment, along with your assigned log-in ID and temporary password.

You may access Eligible Accounts, as designated on your enrollment form, at the website at www.bl-bank.com to obtain balances, transaction history and other information. Subject to the terms of this Agreement, you will generally be able to access your Eligible Accounts through the website seven days a week, 24 hours a day.

At certain times, the Online Service may not be available due to system maintenance or circumstances beyond our control. During these times, you may use our touch-tone telephone banking service, a B & L Bank automated teller machine ("ATM"), our Customer Service line at 660-259-2247 during business hours, or one of our B & L Bank offices to obtain information about your Eligible accounts.

ONLINE BANKING SERVICES: You may use Online Service to obtain account information through our website. This includes obtaining balance information, transaction history and other information on your Eligible Accounts. This information is as of close of business for the previous business day.

A transfer completed through Online Service before the transfer cutoff time on a business day* will be posted to your Eligible Account the same day. All transfers completed after the transfer cutoff time on a business day or on a day that is not a business day, will be posted on the next business day. The transfer cutoff time is 6:00 p.m. (Central Time). The cutoff time for loan payment and stop payment is also 6:00 p.m.

    *Every day is a business day except Saturdays, Sundays and federal holidays.

All electronic communications that we receive from you on the bl-bank.com site that meet identity requirements will be deemed valid, authentic and binding obligations. You intend and agree that these electronic communications will be given the same legal effect as your written and signed paper communications and shall be deemed for all purposes to have been "signed" and to constitute an "original" when printed from electronic files or records established and maintained in the normal course of business. You agree that electronic copies of communications are valid and you will not contest the validity or enforceability of such transactions, absent proof of altered data or tampering.

The Bank may from time to time introduce new Online Banking Services. When this happens we will update our website to include them. Your use of new Online Banking Services will be governed by the terms of this agreement.

OVERDRAFTS (Order of Payments, Transfers, and other Withdrawals): If your Eligible Account has insufficient funds to perform all electronic fund transfers you have requested for a given business day, then:

• Electronic fund transfers involving currency disbursements, like ATM withdrawals, will have priority;
• Electronic fund transfers initiated through Online Service which would result in an overdraft of your account may, at our discretion, be cancelled;
• In the event the electronic fund transfers initiated through Online Banking Service which would result in an overdraft of your account are not cancelled, overdraft charges may be assessed pursuant to the terms of the deposit agreement for that account.

LINKED ELIGIBLE ACCOUNTS: All Eligible Accounts will be linked in accordance with the Online Banking agreement form, allowing viewing and access.

LIMITS ON AMOUNTS AND FREQUENCY OF SERVICE TRANSACTIONS: The number of transfers from Eligible Accounts and the amounts that may be transferred are limited pursuant to the terms of the applicable deposit agreement and disclosure for those accounts. According to Federal Regulations, you may not make more than six (6) preauthorized or automatic transfers from your money market or savings account during the monthly statement period.

If a hold has been placed on deposits made to an account from which you wish to transfer funds, you cannot transfer the portion of the funds until the hold expires.

STOP PAYMENT REQUEST: Online stop-payment requests submitted by 6:00 p.m. (Central Time) will be effective the next business day. To be effective, this type of stop-payment request must precisely identify the name of the payee, the check number (if applicable), the amount and the date of the check or bill pay transaction. If you make your stop-payment request online or by telephone, we will require you to put your request in writing and get it to us within 14 days after you call. You will incur stop-payment charges as disclosed in the current fee schedule for the applicable account. You may not stop payment of any type of online transfer or debit card transactions.

We will make every effort to act upon your stop-payment order; however, we are not responsible for failing to stop if the transaction you wish stopped has been insufficiently described to us, has already been paid, or if your stop payment notice was not received in time or at a place for us to have reasonably acted upon it before the transaction became final.

AUTHORIZED REPRESENTATIVES FOR BUSINESS ACCOUNTS: If a business owns an authorized account, any authorized representative of your business is authorized on such terms, conditions, and agreements as we may from time to time require:

• To enter into this Agreement, as amended from time to time;
• To access each Eligible Account of yours in any manner and for any purpose available through the Service, whether now or in the future;
• To use any Online Banking Service in any manner and for any purpose available through the Service, whether now or in the future.

OUR LIABILITY FOR FAILURE TO MAKE A TRANSFER: 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 when you have properly instructed us to do so, we will be liable to you for your losses or damages caused as a result. However, there are some exceptions. We will NOT be liable, for instance:

• If you do not have adequate money in your eligible account to complete a transaction from the account.
• If a legal order directs us to prohibit withdrawals from the account.
• If your account is closed, or if it has been frozen.
• If you do not initiate an electronic fund transfer soon enough for your payment to be made and properly credited by the payee by the time it is due.
• If the transfer would cause your balance to go over the credit limit of an established line of credit or the credit limit for any credit arrangements set up to cover overdrafts.
• If any electronic terminal, telecommunication device, or any part of the Online Service electronic fund transfer system is not working properly and you knew about the problem when you started the transfer.
• If you have not properly followed the on-screen instructions for using Online Service.
• If the transfer is not in accordance with any term or condition applicable to the relevant Online Service or Eligible Account.
• If your password has been reported lost or stolen or if we have any other reason to believe that an electronic funds transfer may be erroneous or unauthorized by you.
• If funds involved are subject to a hold, dispute, or restriction.
• If you, any joint holder, or an authorized cosigner on an Eligible Account has requested that we stop payment on the electronic transfer.
• If the transfer is not in accordance with any other requirement of our applicable policies, procedures or practices; or
• If circumstances beyond our or our agent's control prevent making a transfer or payment, despite reasonable precautions that we have taken. Such circumstances include but are not limited to computer failure, telecommunication outages, postal strikes and other labor unrest, delays caused by payees, fires, floods, and other natural disasters.

Except to the extent that we are liable under the terms of this Agreement or an agreement that otherwise governs your Eligible Account, if you are an owner of an Eligible Account, you agree to indemnify and hold us, our directors, officers, employees and agents harmless from all loss, liability, claims, demands, judgements, and expenses arising out of or in any way connected with an Eligible Account or the performance of an Online Service. This indemnification is provided without regard to whether our claim for indemnification is due to the use of the Online Service by you or your authorized representative.

Our duties and responsibilities to you are strictly limited to those described in the Agreement, except with respect to any provisions of the law applying to electronic fund transfers that cannot be varied or waived by agreement. In no event will the Bank be liable for any consequential, special, or punitive damages or for any indirect loss that you may incur or suffer in connection with the service (even if the Bank has been informed of the possibility of such damages), including, without limitation, attorneys' fees. The Service Provider is an independent contractor and not the Bank's agent. The Bank's sole duty shall be to exercise reasonable care in the initial selection of the Service Provider.

YOUR LIABILITY AND RESPONSIBILITY FOR UNAUTHORIZED TRANSFERS: If you believe that your password may have been lost or stolen, or that someone has transferred or may transfer money from your account without your permission, or if you suspect any fraudulent activity on your account, notify us immediately by calling Customer Service at 660-259-2247 or in writing to B & L Bank, P. O. Box 190, Lexington, MO 64067.

You could lose all of the money in your accounts (plus your maximum overdraft line of credit, if any). If you contact us within 2 business days after you learn of the loss, theft, compromise, or unauthorized use of your password, you can lose no more than $50 if someone used your password without your permission. If you do NOT contact us within 2 business days after you learn of the loss, theft, compromise, or unauthorized use of your password, and we can prove we could have stopped someone from using your password to access your accounts without your permission if you had told us, you could lose as much as $500.00.

Also, if your paper statement shows transfers that you did not make, contact us at once. If you do not tell us within 60 days after the paper statement was mailed to you, you may not get back any money you lost through transactions made after the 60-day time period if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or hospital stay) kept you from contacting us, we will extend the time periods.

IN CASE OF ERRORS OR QUESTIONS ABOUT ELECTRONIC FUND TRANSFERS, including Bill Payments: Contact us as soon you can if you think your paper statement is wrong or if you need more information about a transfer listed on your paper statement.

The telephone number and address of the person or office to be notified when you believe that an unauthorized EFT has been or may be made are:

• Customer Service at 660-259-2247, during regular business hours
• B & L Bank
  P.O. Box 190
  Lexington, MO 64067

When you contact us:

• Tell us your name and account number.
• Describe the error or 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.
• Tell us the dollar amount of the suspected error.
• If the suspected error relates to a bill payment made via the Service, tell us the account number used to pay the bill, payee name, date the payment was sent, payment amount, ID number, and the payee account number for the payment in question. (This information appears on the Bill Payment View Postings Screen.)

If you contact us by telephone, we may require that you send us your complaint or question in writing by postal mail or fax within 10 business days.

We will communicate to you the results of our investigation within 10 business days after you contact us 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 provisionally 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 in written form within 10 days, we may provisionally credit your account. We will send you a written explanation within 3 business days after we finish our investigation. You may ask for copies of the documents that we used in our investigation.

If a notice of error involves an electronic funds transfer that was initiated in a location outside the United States, the applicable time period for action shall be 20 business days in place of 10 business days, and 90 calendar days in place of 45 calendar days. If we have made a provisional credit, a corresponding debit will be made from your account.

If we have reasonable proof, within our sole discretion, that the merchant has received your bill payment, we will not credit your account. We will make every effort to work with the merchant to resolve the issue on your behalf. In our investigation of bill payment transactions, we will request from a merchant a refund of any interest and/or fees which you may have been assessed. You will be notified of the final resolution.

SECURITY: You will be given a password that will give you access to your Eligible Accounts. This password can be changed within the Online Service. We recommend that you change your password regularly. We recommend that you create a password that utilizes between 8 and 17 digits containing at least 4 lower case alpha and 4 numeric characters for purposes of security. Your password should not be associated with any commonly known personal identification, such as social security numbers, address, date of birth, or names of children. We are entitled to act on instructions received under your password. For security purposes, it is recommended that you memorize the password and do not write it down. You are responsible for keeping your password and Eligible Account information confidential.

We require the use of a 128-bit secure browser to log in to your account and perform transactions. Secure browsers employ Secure Sockets Layer (SSL) technology to communicate with servers. The technology encrypts or scrambles the communication (i.e., your account information) so it is virtually impossible for anyone other than the Bank or its affiliates to read it.

Upon five unsuccessful attempts to use your password, your access to Online Service will be revoked. To re-establish your authorization to use Service, you must contact us by calling Customer Service at 660-259-2247 to have your password reset or to obtain a new temporary password.

LINKS: Links to non-B & L websites contained in this site are offered only as pointers to sources of information on subjects or services that may be of interest to users of the B & L Bank's website, and B & L Bank is not responsible for the content of such sites as we have no control over what is displayed there.

B & L Bank does not guarantee the authenticity of documents at such sites, and links to non-B & L sites do not imply any endorsement of or responsibility for the ideas, opinions, information, products, or services offered at such sites. Use of links to any non-B & L site is solely at the user's own risk.

TERMINATION: Unless otherwise required by applicable law, B & L Bank may terminate this Agreement and/or your access to any transaction through the Online Service, in whole or in part, at any time.

Access to the Online Services, in whole or in part, may be reinstated by us, at our discretion, at any time. If reinstated, the then current terms of this Agreement will control. You may request reinstatement of Online Service by calling our Customer Service at 660-259-2247.

If you wish to cancel any of your Online Services, contact B & L Bank at 660-259-2247 or send us cancellation instructions in writing to:

CHANGES: Except as otherwise required by law, rule or regulation, we may change the terms of this Agreement from time to time and at any time. When changes are made we will update this Agreement at the website. The website will be updated on the effective date, unless an immediate change is necessary to maintain security of the system or unless a law, rule, or regulation requires that it be updated at an earlier time. As always, you may choose to accept or decline changes by continuing or discontinuing to use the Online Service.

DISCLOSURE OF INFORMATION: You authorize us to disclose to third parties, affiliates, and agents, such as independent auditors, consultants or attorneys, information you have provided or that we or our affiliates have obtained about your accounts and the transfers you make:

• To comply with laws, government agency rules or orders, court orders, subpoenas or other legal authority to request such information;
• To verify the existence and condition of your account for a third party, such as a credit bureau or merchant;
• When necessary to complete any type of transfer and any type of bill payments;
• When we have entered into an agreement to have another party provide the Bill Payment Service or receive your account information. We will provide the third party with information about your eligible account, types of transactions, and your electronic mail messages in order to carry out your instructions.

FEES: There are no monthly or transaction fees for accessing the Online Service for viewing your accounts or completing transfers to and from your Eligible Accounts. Other fees may be assessed and billed separately by your internet service provider.

To the fullest extent permitted by applicable law, you authorize us to obtain payment of your obligation to us under the Agreement from time to time by initiating debit or credit transfers to any of the accounts. At the time any account is closed or any Online Service is terminated (whether by you, by us, or otherwise) you agree that all such obligations will be immediately due and payable to us, and you authorize us to withhold the amount of any such obligations from any account. Debiting an account is not the Bank's exclusive remedy under this or any other section of the Agreement and the Bank will not be deemed to have made an election of remedies by making any such debit or deduction on any one or more occasions.

TELEPHONE CHARGES: You will be responsible for any telephone charges which you incur by using the Online Service.

MISCELLANEOUS FEES AND CHARGES: The fees that have been separately disclosed to you in connection with your Eligible Account(s) will continue to apply to the account(s).

ADDRESS CHANGES: It is your responsibility to ensure that the contact information in your user profile is current and accurate. This contact information includes name, address, phone numbers, e-mail address and account numbers. Changes can be made either via secure message within Online Service or by U. S. Mail. We are not responsible for any payment processing errors or fees incurred by you if you do not provide accurate account or contact information.

ASSIGNMENT: You may not assign all or any part of your rights or obligations under this Agreement without our prior express consent, which may be withheld at our sole discretion. We may assign or delegate all or any part of our rights or obligations under this Agreement, including, without limitation, the performance of the services described herein. This Agreement will be binding on and inure to the benefit of the successors and assigns of either party.