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200501152
<br />SUBORDINATION AGREEMENT
<br />This Agr ment is made and execu this ),-),.day of e� Gd by and between and
<br />t^1L� `J r ( "Borrower "), .� J rrs,7h ( "Creditor "), and
<br />Geneva State Bank of Kearney, Nebraska ( "Bank. ")
<br />RECITALS:
<br />A. The Bank proposes to extend credit to the Borrower.
<br />B. A condition of such extension of credit is that all indebtedness of the Borrower to the Creditor
<br />related to a promissory note signed January 6, 2003 and further recognized as document number
<br />200302539 filed with the Register of Deeds Office in Hall County, Nebraska, whether due or not due,
<br />whether several or joint and several, and however arising, including all interest thereon (the "Creditor
<br />Indebtedness ") be subordinated to any and all indebtedness owed by the Borrower to the Bank, of every
<br />type and description, whether now existing or hereafter created or incurred, absolute or contingent,
<br />secured or unsecured, due or not due, whether several or joint and several, and however arising, including
<br />all interest thereon (collectively, the "Bank Indebtedness ").
<br />C. The Creditor is willing to subordinate the Creditor Indebtedness to the Bank Indebtedness in order
<br />to induce the Bank to make the above - described extension of credit and to give and continue to give credit
<br />and other financial accommodations to the Borrower.
<br />NOW, THEREFORE, in consideration of the premises and of the financial accommodations given, to
<br />be given, or continued by the Bank to the Borrower, the Creditor hereby agrees with the Bank as follows:
<br />1. The foregoing recitals are affirmed and incorporated herein by this reference.
<br />2. The Creditor does hereby expressly subordinate the payment of the Creditor Indebtedness and the
<br />lien of any security given in connection with the Creditor Indebtedness to the payment in full of the Bank
<br />Indebtedness and the lien of any security given in connection with the Bank Indebtedness to the extent and
<br />in the manner set forth herein.
<br />3. If any receivership, insolvency, bankruptcy, assignment of the benefits of creditors, readjustment
<br />of indebtedness, composition, reorganization (whether or not pursuant to bankruptcy laws), sale of all or
<br />substantially all of the assets, dissolution, winding up, liquidation, or any other marshalling of the assets
<br />and liabilities of the Borrower, any payment or distribution of assets of the Borrower of any kind or
<br />character, whether in cash, securities, or other property, which would otherwise be payable to or
<br />deliverable upon or with respect to the Creditor Indebtedness shall be paid or delivered directly to the
<br />Bank for application on the Bank Indebtedness until the Bank Indebtedness shall have been fully paid and
<br />satisfied. The Creditor will file all claims, proofs or claim or other instruments of similar character
<br />necessary to enforce the obligations of the Borrower with respect to the Creditor Indebtedness. If the
<br />Creditor shall fail to take any such action, the Bank may take such action on behalf of the Creditor. The
<br />Creditor hereby appoints the Bank, or any of its officers or employees in behalf of the Bank, as the
<br />attorney -in -fact for the Creditor to demand, sue for, collect and receive any and all such moneys,
<br />dividends or other assets and given acquittance therefor, and to file any claim, proof of claim or other
<br />instrument of similar character, and to take such other actions in the Bank's own name or in the name of
<br />the Creditor as the Bank may deem necessary or advisable for the enforcement of the agreements
<br />contained herein. If the Creditor is an individual, the power -of- attorney herein shall not be affected by the
<br />subsequent disability or incompetence of the Creditor. The appointment of the Bank as attorney -in -fact of
<br />the Creditor shall deemed to be coupled with an interest and shall be irrevocable. The Creditor will
<br />execute and deliver to the Bank such other and further powers of attorney or instruments as the Bank may
<br />request in order to accomplish the foregoing.
<br />4. The Creditor shall not assign, transfer, hypothecate, or dispose of any claim it has or may have
<br />against Borrower while any Bank Indebtedness remains unpaid, without the written consent of the Bank.
<br />The Bank reserves the right to withhold such consent or to condition such consent upon making any
<br />assignment, transfer, hypothecation or other disposition expressly subject to the terms of this Agreement.
<br />5. The Creditor shall upon request deliver to the Bank a true and correct copy of any notes or other
<br />instruments now or hereafter issued which evidence of the Creditor Indebtedness.
<br />6. This Agreement shall constitute a continuing agreement of subordination, and the Bank may,
<br />without notice to the Creditor, lend monies, extend credit, and make other financial accommodations to or
<br />for the account of Borrower on the faith hereof.
<br />7. The Bank, at any time and from time to time, may enter into such agreements with the Borrower as
<br />the Bank may deem proper extending the time of payment or renewing or otherwise altering the terms of
<br />all or any of the Bank Indebtedness or affecting any security given to secure payment and performance of
<br />any or all of the Bank Indebtedness, or may exchange, sell, or surrender or otherwise deal with any such
<br />LEGAL DESCRIPTION: Block Three (3) in Ponderosa Lake Estate Subdivision in
<br />the City of Grand Island, Hall County, Nebraska.
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