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ADJUSTABLE RATE RIDER 200206074 (LIBOR 6 Month Index - Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 29TH day of MAY, 2002 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Tres[ or Security Decd (the "Security Instrument ") of the same date given by the undersigned (the "Borrower ") to secure Borrower's Adjustable Rate Nice (the "Note ") to: HERITAGE MORTGAGE CORPORATION. AN OREGON CORPORATION (the "Lender ") of the sane; date and covering the property described in the Security Instrument and located at: 916 WEST DIVISION STREET GRAND ISLAND. NE 68801 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. TIIE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides Tot an initial interest rate of 10.875 %. The Note provides for changes in the interest rate and We monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of JUNE, 2005 , and on that day every 6TH month thereafter. Each date oil which my interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index' is the average of interbank o0crud rates for 6 month U.S. dollar-demmninated deposits in the London Market ( "IJBOR "), as published in The Wall Street Journal. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." It the hhdex is no longer available, the Note Holder will choose a new index drat is based upon wunparable information. I fe, Note Iloldcr will give me notice of this choice. (C) Calculation of Changes Before each Change Dale, the Now Holder will calculate ny new interest late by adding SEVEN AND THREE QUARTERS pertamtage points ( 7.750 11) to the Current Index. The Note Holder will then round We result of this addition to the nearest one - eighth of one percentage point (0.125'h). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Iloldcr will Wen determine the amount of the monthly payment that would be sufficient to repay We unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. DDSW IK Page 1 43