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201008726 SUBORDINATION AGREEMENT THIS AGREEMENT made and executed this 16th day of November, 2010, by HOME FEDERAL SAVINGS AND LOAN ASSOCIATION O� GR.AND ISLAND, hereinafter referred to as "Subordinating Creditor" (whether one ar more), for the benefit of HERITAGE BANK, hereinafter referred to as "Secured Party". WITNESSETH: WHEREAS, John E. Nowicki and Jennifer L. Nowicki, husband and wife, (whether one or more), hereinafter referred to as "Debtor", have granted to the Subardinating Creditor a Mortgage or Deed af Trust dated June 8, 2009, and filed in the office of the Hall County Register af Deeds, on June 12, 2009, as document no. 2009046$1 in respect to that real estate described as: The Southerly Eighty-Eight and Three Tenths (88.3) Feet of Lot Eight (8), In Block Six (6), Spaulding and Gregg's Addition to the City of Grand Island, Hall County, Nebraska. WHEREAS, the Secured Farty has agreed to enter inta a loan transaction with the Debtor, whereby certain funds are to be advanced to the Debtor conditional upon the Debtar providing the Secured Party with a first lien in respect to the above described real estate, hereinafter referred ta as the "Collateral"; and WHEREAS, the Subordinating Creditor is willing to subordinate any lien it may have in respect to the Collateral by reason of Subordinating Creditor's Mortgage or Deed of Trust of record ta perfect s�curity whenever and wherever filed in order to assure the Secured Party af a first lien positian in and to the Collateral; NOW, THEREFORE, it is agreed: 1. The Subordinating Creditor hereby consents to a subordination of its priority position to the Secwed Party and agrees that its lien in respect to the Mortgage or Deed af Trust hereinabove described, if any, shall at all times be secondary to the extent herein provided and subject to the lien ofthe Secured Party in respect to the Callateral. 2. The Subordinating Creditor hereby consents ta the Debtor granting Secured Farty a first lien in all the Collateral as described above to secure indebtedness to be advanced to Debtor by Secured Party, in the original principal amount of Fort -Two Thousand and �0/l 00ths Dollars ($42,0OO.Op) �� ► i-��-a� �[� Rec. � �� _� `�]c�7G 3. So long as an abligation is outstanding frarn Debtor to the Secured Party for indebtedness evidenced by Prornissory Notes or other instruments of indebtedness to the extent herein provided in Paragraph 2, the Secured Party's interest in the Collateral shall have priority over the lien of the Subordinating Creditor in that collateral, and the Subordinating Creditor's interest in that Collateral is, in all respects, subject and subordinate to the security interest of the Secured Party to the extent of the principal sum yet owning to Secured Party in respect to the indebtedness described in Faragraph 2 along with interest and costs allocable thereta, however evidenced. 4. So long as any portion of the describ�d obligatian to the Secured Farty is outstanding and unpaid, the provisions of the Deed of trust or other instrument of security between the Debtor and the Secured Party are controlling as ta the collateral in which Secured Party is to have a first security interest, including any time there is a conflict between it and the provisions of any lien instrument granted to the Subardinating Creditor by the Debtor. 5. This Agreement is a continuing, absolute and unconditional agreement of subordination without regard to the validity or enforceability of the Pramissozy Notes or other instruments of indebtedness between the Debtar and the Secured Party evidencing sums due or documents granting a security interest in the Collateral, irrespective of the time or order of attachment or perfection of the security interest in the Collateral or the