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200211973 FIXED /ADJUSTABLE RATE RIDER (One -Year Treasury Index —Rate Caps —Fixed Rate Conversion Option) TIES FIXED /ADJUSTABLE RATE RIDER is made this 28th day of October 2002 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument ") of the same date given by the undersigned (`Borrower') to secure Borrower's Fixed /Adjustable Rate Note (the "Note') to United Nebraska Bank ( "Lender') of the same date and covering the property described in the Security Instrument and located at: 320 Ponderosa Drive Grand Island, NE 68803 t'i.,ny Address] THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE, LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. THE NOTE ALSO CONTAINS THE OPTION TO CONVERT THE ADJUSTABLE INTEREST RATE TO A NEW FIXED RATE. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 5.250%. The Note also provides for a change in the initial fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of November 1st 1 2007 , and the adjustable interest rate I will pay may change on that day every 12th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." (B) The Index Beginning with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one -year, as made available by the Federal Reserve Board. The most recent Index figure available as of the dale 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Two and 875 /1000 percentage points (_2.87517,,) to the Current Index. The Note Holder will then round the result of this addition to the nearest one - eighth of one percentage point (0.125 %). 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 Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Dale 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. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 7.250% or less than 5.000%_ Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than two percentage points from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 10.250 %, which is called the "Maximum Rata" (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes agsin. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of the change in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. The notice will include the amount of my monthly payment, any information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. FIXED INTEREST RATE OPTION The Note provides for Borrowers option to convert from an adjustable interest rate with interest rate limits to a new fixed interest rate, as follows: 5. FIXED INTEREST RATE CONVERSION OPTION (A) Option to Convert to Fixed Rate I have a Conversion Option that 1 can exercise unless I am in default or this Section 5(A) will not permit me to do so. The "Conversion Option" is my option to convert the interest rate I am required to pay by this Note from an ad ustable rate with interest rate limits to the fixed rate calculated under Section 5(B) below. We conversion can only take place on the first, second or third Change Date. Each Change Date on which my interest rate can convert from an adjustable rate to a fixed rate also is called the "Conversion Date." 1 can convert my interest rate only on one of these three Conversion Dates. If 1 want to exercise the Conversion Option, 1 must first meet certain conditions. Those conditions are that: (i) I must give the Note Holder notice that I want to do so; (ii) on the Conversion Date, I must not be in default under the Note or the Security Instrument; (iii) by a date specified by the Note Holder, I must pay the Note Holder a conversion fee of U.S. $250.00 ; and (iv) I must sign and give the Note Holder any documents the Note Holder requires to effect the conversion. (B) Calculation of Fixed Rate MULUSTATE FultwUn OSTABLE aVot RNER— ONE -YEAR TREASURY INDEX CONVERTIBLE . -S.,pk �,,iy— o..atix llnn= Im—, F—MBJ I/la I0887.CV (nun 611866 (Ea8�1 lr1