INVESTOR SUBSCRIPTION AGREEMENT
Series 4 Subordinated Unsecured Notes
Persons interested in purchasing Notes of KH Funding Company (the "Notes") must
complete and return this Subscription Agreement along with their check, money
order or wire transfer to:
KH Funding Company
00000 Xxxxxxxx Xxxxx Xxxxx000
Xxxxxx Xxxxxx, XX 00000
If accepted by KH Funding Company (the "Company"), this Subscription Agreement
shall constitute a subscription for Notes of the Company. The minimum
investment, subject to waiver by the Company, is $5,000.
Acceptance of this Agreement will be in the form of an Acknowledgment which will
be mailed to you. Monthly statements will be mailed to you showing the balance
for your note. If this Agreement is not accepted by the Company, your investment
funds will be returned to you within ten (10) days with no interest earned
thereon.
Method of Payment: Check, money order or wire transfer payable to KH Funding
Company.
I/we hereby irrevocably tender this Subscription Agreement for the purchase of
$_______________ and, with this Subscription Agreement, I tender payment in such
amount for the Notes subscribed.
Term Requested (check one): See the enclosed Prospectus and/or
Prospectus/Supplement for current interest
rates.
___1-Year Fixed Term Note ___3-Year Fixed Term Note ___5-Year Fixed Term Note
The 1, 3 and 5-Year Fixed Term Notes have a fixed interest rate that is set at
issuance.
Interest (check one): ___ Monthly ___Quarterly ___Accrued
In connection with this investment in the Company, I represent and warrant as
follows:
1. I have received the Company's Prospectus dated ______________, 2003.
2. I am a bona fide resident of the state of ____________________.
3. My Social Security number or taxpayer identification number given
below is correct.
4. I am not subject to backup tax withholding (NOTE: Please cross out #4
if you have been notified by the Internal Revenue Service that you
are subject to backup withholding because of underreporting interest
or dividends on your tax return.
Please register the Note which I am purchasing as follows:
Name: ___________________________________________________________
As (check one):
_____Individual _____ Existing Partnership _____ Trust
_____Tenants-in-Common _____ Corporation _____ XXX or SEP
_____Joint Tenants _____ Minor with adult custodian under UGMA
For the person(s) who will be registered noteholder(s):
------------------------------ -----------------------------
Name Telephone
------------------------------ -----------------------------
Street address Social Security or Taxpayer ID number
------------------------------ ------------------------------
City State Zip Date of birth
(only required for XXX accounts)
------------------------------ ------------------------------
Signature Date
Original - KH FUNDING COMPANY Copy - SUBSCRIBER
Subscription Agreement
INVESTOR SUBSCRIPTION AGREEMENT
Series 3 Senior Secured Notes
Persons interested in purchasing Notes of KH Funding Company (the "Notes") must
complete and return this Subscription Agreement along with their check, money
order or wire transfer to:
KH Funding Company
00000 Xxxxxxxx Xxxxx Xxxxx000
Xxxxxx Xxxxxx, XX 00000
If accepted by KH Funding Company (the "Company"), this Subscription Agreement
shall constitute a subscription for Notes of the Company. The minimum
investment, subject to waiver by the Company, is $5,000.
Acceptance of this Agreement will be in the form of an Acknowledgment which will
be mailed to you. Monthly statements will be mailed to you showing the balance
for your note. If this Agreement is not accepted by the Company, your investment
funds will be returned to you within ten (10) days with no interest earned
thereon.
Method of Payment: Check, money order or wire transfer payable to KH Funding
Company.
I/we hereby irrevocably tender this Subscription Agreement for the purchase of
$_______________ and, with this Subscription Agreement, I tender payment in such
amount for the Notes subscribed.
Term Requested (check one): See the enclosed Rate Sheet for current
interest rates.
____1-Day Demand Note ____30-Day Demand Note
____1-Year Fixed Term Note ____3-Year Fixed Term Note ____5-Year Fixed Term Note
The 1-day and 30-day Notes have an interest rate that is adjusted by the Company
from time-to-time. The interest rate will not be less than 2.0% per year and
will not adjust more than 0.5% in any 90-day period. We will notify you in
writing at least seven (7) days prior to any decrease in the interest rate. The
1, 3 and 5-Year Fixed Term Notes have a fixed interest rate that is set at
issuance.
Interest (check one): ___ Monthly ___Quarterly ___Accrued
In connection with this investment in the Company, I represent and warrant as
follows:
1. I have received the Company's Prospectus dated ______________, 2003.
2. I am a bona fide resident of the state of ____________________.
3. My Social Security number or taxpayer identification number given below
is correct.
4. I am not subject to backup tax withholding (NOTE: Please cross out #4
if you have been notified by the Internal Revenue Service that you are
subject to backup withholding because of underreporting interest or
dividends on your tax return.
Please register the Note which I am purchasing as follows:
Name: ______________________________________________________________
As (check one):
_____Individual _____Existing Partnership _____Trust
_____Tenants-in-Common _____Corporation _____IRA or SEP
_____Joint Tenants _____Minor with adult custodian under UGMA
For the person(s) who will be registered noteholder(s):
------------------------------ -----------------------------
Name Telephone
------------------------------ -----------------------------
Street address Social Security or Taxpayer ID number
------------------------------ ------------------------------
City State Zip Date of birth
(only required for XXX accounts)
------------------------------ ------------------------------
Signature Date
Original - KH FUNDING COMPANY Copy - SUBSCRIBER
Subscription Agreement
2
[ KH FUNDING COMPANY LETTERHEAD]
[Date]
[Investor Name]
[Address]
[Address]
RE: Notice of Maturity Account No. _____________
Dear Investor:
A review of your account indicates that the Maturity Date is [Month
Day, Year]. Pursuant to the terms of the Notes you must chose to either (a)
redeem your investment in whole or part, or (b) continue you investment in Notes
of KH Funding Company ("the Company") under one of the below listed options, and
then complete and return to us this Notice of Maturity ("Notice").
Of course, we welcome your continued investment in Notes of KH Funding
and if you are interested in doing so enclosed please find our current
Prospectus dated [September __, 2003] and our current Rate Supplement. Simply
read this current Prospectus, including "Risk Factors," carefully before making
your investment decision. Then review the Rate Supplement and choose the rate
and term that best suits your investment objectives. Finally, complete the
options below and return this Notice to us in the enclosed postage-paid envelope
by [Month Day, Year], so we can update your investment account.
Again, thank you for your interest. If you have any questions, please
call our office at 000.000.0000.
Very truly yours,
Investor Relations
Options: (Select one)
(1) ___ I/we hereby irrevocably elect for KH Funding Company to redeem the Notes
referenced above in whole.
(2) ___ I/we hereby irrevocably elect for KH Funding Company to redeem the Notes
referenced above in part and in connection therewith, I/we tender
$_______________ of the Redemption Price for the purchase of Notes as selected
below.
(3) ___ I/we hereby irrevocably elect to continue my/our investment in Notes of
KH Funding Company and in connection therewith, I/we tender the entire
Redemption Price of the Notes referenced above for the purchase of Notes as
selected below.
If (2) or (3) above selected, please complete the following:
Term Requested (check one): *
______ 1-Day Demand Note ______ 30-Day Demand Note
______ 1-Year Fixed Term Note ______ 3-Year Fixed Term Note _____ 5-Year Fixed Term Note
Interest (check one): ___ Monthly ___Quarterly ___Accrued
Signature of Investor(s) Date
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Deposit Accounts are not FDIC or government insured.
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* The 1-day and 30-day Notes have an interest rate that is adjusted by the
Company from time-to-time. The applicable interest rates shall be based
upon the Federal-Funds Target Rate as follows: One Day: Federal-Funds
Target Rate plus 2.50% and Thirty Day: Federal-Funds Target Rate plus
3.00%. The 1, 3 and 5-Year Fixed Term Notes have a fixed interest rate that
is set at issuance.
NOTICE OF MATURITY
