Document:

Form of Deed of Tax Covenant

 Exhibit 10.4 
  
 Dated [·] 2005

  
 BOTAPOL MANAGEMENT B.V. 
  
 and 
  
 TAKIRRA INVESTMENT CORPORATION N.V. 
  

and 
  
 RÉMY COINTREAU 
  
 and 
  
 CAREY AGRI INTERNATIONAL
POLAND Sp. z o.o. 
  
 and 
  
 CENTRAL EUROPEAN DISTRIBUTION CORPORATION 
  
 TAX DEED OF COVENANT 
  
 

 
  
 One Silk Street 
 London EC2Y 8HQ 
  
 Telephone (44-20) 7456 2000 
 Facsimile (44-20) 7456 2222 
  
 Ref: Antoaneta Proctor/Katie Price 

 Tax Deed of Covenant 
  
 This Tax Deed of Covenant is made on [·] 2005 between:

  

	(1)	Botapol Management B.V., a company incorporated in the Netherlands whose registered office is at [·], the Netherlands (“Botapol Management”); 

  

	(2)	Takirra Investment Corporation N.V., a company incorporated in the Netherlands Antilles whose registered office is at Fokkerweg 26, Unit 301, Curaçao, Netherlands
Antilles (“Takirra” and together with Botapol Management, the “Sellers” and each a “Seller”); 

  

	(3)	Rémy Cointreau S.A., a company incorporated in France whose registered office is at rue Joseph Pataa, Ancienne rue de la Champagne, 16100 Cognac, France (the
“Guarantor”); 

  

	(4)	Carey Agri International Poland Sp. z o.o., a limited liability company incorporated under the laws of Poland whose registered office is at [·] (the “Purchaser”); and 

  

	(5)	Central European Distribution Corporation, a company incorporated in Delaware whose registered office is at Two Bala Plaza, Suite 300, Philadelphia, United States of America
(“CEDC”). 

  
 WHEREAS: 
  

	(A)	This Deed is entered into pursuant to the provisions of an International Share Sale Agreement dated [·] 2005 and made between the Sellers (1), the Guarantor (2) and the Purchaser (3) (the “Agreement”). 

  

	(B)	The Guarantor has agreed to guarantee the performance of Botapol Management, an indirect subsidiary of the Guarantor, of its obligations under this Deed. 

 

	(C)	CEDC has agreed to guarantee the performance of the Purchaser, a subsidiary of CEDC, of its obligations under this Deed. 

  

	(D)	The obligations of the Sellers under this Deed are several. Accordingly, Botapol Management shall not have any liability for the performance of Takirra of its obligations under this
Deed and vice versa. 

  
 It is agreed as follows: 

 

	1	Interpretation 

  
 In this Deed, including the Schedule, the headings shall not affect its interpretation and: 
  

	 	1.1	unless otherwise defined, words and expressions defined in the Agreement shall have the same meaning wherever used in this Deed and the provisions of Clause 1 of the
Agreement shall be deemed to be incorporated in this Deed; 

  

	 	1.2	in the event of conflict between the provisions of the Agreement and this Deed, this Deed shall prevail; 

  

	 	1.3	the following expressions bear the following meanings namely: 

  

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 “Accounts” means the audited balance sheet, statement of income, stockholders’
equity and cash flow: 
  

	 	(i)	in respect of Botapol Holding for the financial period ending 31 March 2005; 

  

	 	(ii)	in respect of Hillcroft for the financial year ending 31 December 2004; and 

  

	 	(iii)	in respect of Bols both of (a) for the financial year ending 31 December 2004 and (b) for the financial period ending 31 March 2005. 

  
 “Accounting Period” means any period in respect of which
Tax is or may be charged; 
  
 “Last Accounting
Date” means: 
  

	 	(i)	in respect of Botapol Holding and Bols, 31 March 2005; and 

  

	 	(ii)	in respect of Hillcroft, 31 December 2004 

  
 “Purchaser’s Benefit” means any Taxation Benefit arising: 
  

	 	(i)	to any member of the Purchaser’s Group (other than a Company); or 

  

	 	(ii)	to any Company in respect of any Transaction occurring after the Closing Date or in a period ending after Closing or taken into account as an asset in preparing the Accounts;

  
 “Seller Group Company” means
any company which is a member of the Sellers’ Group; 
  
 “Straddle Period” means, in relation to any Company, an accounting period beginning before and ending after Closing; 
  
 “Taxation” or “Tax” means all forms of taxation (other than deferred tax (as that term is understood for book
accounting purposes)) whether direct or indirect and whether levied by reference to income, profits, gains, net wealth, asset values, turnover, volumes sold added value, any Transaction or other reference and statutory, governmental, state,
provincial, local governmental or municipal impositions, duties (but excluding any registration, stamp and transfer taxes and capital duties which are payable as a result of the Transactions contemplated by the Transaction Documents), contributions
and levies (including without limitation social security contributions and any other payroll taxes), in each case whenever and wherever imposed (whether imposed by way of a withholding or deduction for or on account of tax or otherwise) and whether
chargeable or attributable to any Company or any other person and all penalties, surcharges, charges, costs and interest relating thereto save to the extent such penalties or interest are attributable to unreasonable delay by the Purchaser or any
member of the Purchaser’s Group or, after Closing, any Company, or to the failure of the Purchaser to comply with its obligations under this Deed or the Agreement; 
  
 “Taxation Authority” means any Tax authority of competent jurisdiction with respect to any of the
Companies; 
  
 “Taxation Benefit” means any
Taxation benefit or advantage including any loss, relief, allowance, exemption, set-off, deduction, reduction, postponement, roll-over, hold-over, repayment, recovery or credit available in the computation of any liability to Taxation; 

 

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 “Tax Return” means any return, declaration, claim for refund, information return or
statement relating to Taxation which was filed or should have been filed with any Taxation Authority, including any schedule or attachment thereto; 
  
 “Transaction” includes any transaction, circumstance, act, event or omission of whatever nature and includes, without limitation, any
change in the residence of any person for the purposes of any Taxation and any change in accounting reference date; 
  

	 	1.4	references to “profits” include income, profits or gains (including capital gains) of any description or from any source and references to profits earned,
accrued or received include profits deemed to have been or treated as earned, accrued or received for Taxation purposes; 

  

	 	1.5	references to Tax, Taxation or Taxation payable shall include: 

  

	 	1.5.1	the loss or non-availability of, or reduction in the amount of, any Purchaser’s Benefit to the extent that such Purchaser’s Benefit has been taken into account as
an asset in the Accounts; 

  

	 	1.5.2	the cancellation, loss, non-availability or reduction in the amount of, or setting off against any Taxation liability, of a right to repayment of Taxation, to the extent that
such right has been taken into account in, or in computing a provision for Taxation in, the Accounts; and 

  

	 	1.5.3	the setting off against profits or against a Taxation liability (in either case in respect of which but for such setting off the Company concerned would have had a liability
to pay Taxation in respect of which a claim could have been made under this Deed) of any Purchaser’s Benefit, 

  
 and the amount of Taxation shall in such cases be deemed to be: 
  

	 	(i)	in a case within Clause 1.5.1 above, the amount of Taxation which would have been saved if the Purchaser’s Benefit had not been lost, reduced or set off or, as the case may be,
had been available; 

  

	 	(ii)	in a case within Clause 1.5.2 above, the amount of the repayment; or 

  

	 	(iii)	in a case within Clause 1.5.3 above, the amount of Taxation which would have been saved by use of the Purchaser’s Benefit but for such setting off; 

  

	 	1.6	references to the “Purchaser” shall, where the benefit of this Deed has been assigned under Clause 18.6 of the Agreement, mean the person or persons for the
time being entitled to the benefit of this Deed PROVIDED THAT the Sellers shall not, in any circumstance, be required to make a greater payment to such person or persons than it would have had to make had the benefit of this Deed not been assigned;

  

	 	1.7	references to the “Sellers” shall include either or both of them, as the case may be; 

  

	 	1.8	references to Clauses are to Clauses of this Deed unless otherwise specified. 

  

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	2	Covenant 

  

	 	2.1	Subject to any other provisions of this Deed, the Sellers severally agree to each pay to the Purchaser on the due date for payment an amount equal to one half of the amount
of: 

  

	 	2.1.1	any Taxation payable or suffered by any Company: 

  

	 	(i)	in respect of, or arising from, any Transaction effected or deemed to have been effected on or before the Closing Date; 

  

	 	(ii)	by reference to any profits earned, accrued or received by that Company on or before the Closing Date; or 

  

	 	(iii)	by reference to the net worth, asset value, turnover or added value of that Company on or before the Closing Date; 

  

	 	2.1.2	any Taxation affecting any Company in respect of, or arising from any Transaction completed after the Closing Date in pursuance of a legally binding obligation or an
arrangement, in either case whether or not conditional, incurred or entered into on or before the Closing Date (for the avoidance of doubt this shall not include any Transaction entered into between either or both Sellers and the Purchaser or any
Company pursuant to the share sale or the terms of the Agreement); 

  

	 	2.1.3	any liability of any Company to make a payment for, or repay in whole or in part, (other than to any other Company) any Taxation Benefit pursuant to any agreement or
arrangement entered into on or before the Closing Date to the extent such Taxation Benefit was taken into account as an asset in preparing the Accounts; 

  

	 	2.1.4	any payment (other than a payment due from another Company) which any Company fails to obtain in consideration for any Taxation Benefit to the extent such payment was taken
into account as an asset in preparing the Accounts; and 

  

	 	2.1.5	any reasonable third party costs and expenses properly incurred or payable by the Purchaser and the Companies in connection with, or in consequence of, any matter for which a
successful claim is made by the Purchaser under this Deed. 

  

	 	2.2	Any payments made under Clause 2.1 above shall be treated as an adjustment to the consideration paid by the Purchaser for the Shares under the terms of the Agreement.

  

	3	Exclusions 

  

	 	3.1	The Sellers shall not be liable under Clause 2.1 above to the extent that: 

  

	 	3.1.1	provision or reserve for such Taxation was made or otherwise taken into account in the Accounts; 

  

	 	3.1.2	such Taxation was discharged prior to the Closing Date; 

  

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	 	3.1.3	the Purchaser has otherwise been compensated in respect of the matter giving rise to a claim under Clause 2.1, under the Deed or the Agreement or in any other manner;

  

	 	3.1.4	such Taxation arises in the ordinary course of business of any Company since the Last Accounting Date in accordance with such Company’s current accounting practices;

  

	 	3.1.5	such Taxation would not have arisen but for, or is increased as a result of: 

  

	 	(a)	any voluntary act of; or 

  

	 	(b)	disclaimer, withdrawal of claim or election made, or notice or consent given by, 

  
 the Purchaser or, after the Closing Date, any Company, which such Purchaser or Company knew or ought reasonably to have
known would give rise to such Taxation, other than: 
  

	 	(i)	an act in the ordinary course of business carried on by any Company at the Closing Date and which could not reasonably have been avoided; 

  

	 	(ii)	pursuant to a binding obligation or an arrangement entered into before the Closing Date; or 

  

	 	(iii)	at the joint written request of the Sellers or their professional advisers; 

  

	 	3.1.6	any Taxation which arises by reason of a voluntary disclaimer by any Company after the Closing Date of the whole or part of any Taxation Benefit to which it is entitled or by
reason of the revocation by any Company after the Closing Date of any claim for Taxation Benefit made (whether provisionally or otherwise) by it prior to the Closing Date, other than: 

  

	 	(i)	an act in the ordinary course of business carried on by any Company at the Closing Date and which could not reasonably have been avoided; 

  

	 	(ii)	pursuant to a binding obligation or an arrangement entered into before the Closing Date; or 

  

	 	(iii)	at the joint written request of the Sellers or their professional advisers, 

  

in each case where such Taxation Benefit was taken into account in, or in computing a provision for Taxation in, the Accounts; 
  

	 	3.1.7	such Taxation would not have arisen but for or has been increased by a failure or omission by any Company to make any claim, election, surrender or disclaimer or give any
notice or consent or do any other thing after Closing Date the making, giving or doing of which was taken into account or assumed in computing a provision for Taxation in the Accounts and requested by the Sellers under the provisions of this Deed or
otherwise or where the need for such claim, election, surrender, disclaimer, notice or consent is otherwise actually known to the Purchaser; 

  

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	 	3.1.8	any liability would not have arisen, but for an act carried out or omitted to be carried out by the Sellers or any Company prior to the Closing Date at the written request of
the Purchaser; 

  

	 	3.1.9	any Taxation Benefit arising as a consequence of, or by reference to, a Transaction which occurred before the Closing Date, or in respect of a period ending on or before
Closing, is available to relieve or mitigate such Taxation within the later of (i) two years of such Taxation arising and (ii) 31 December 2007, except to the extent that such Taxation Benefit is taken into account as an asset in, or in computing a
provision for Taxation in, the Accounts; 

  

	 	3.1.10	any VAT payable by any Company with respect to a Transaction effected or deemed to have been effected by such Company on or before the Closing Date is:

  

	 	(i)	collected through receipt of payment of invoices issued by that Company with respect to such Transaction; and/or 

  

	 	(ii)	capable of being set off against VAT due from that Company with respect to Transactions effected or deemed to be effected after the Closing Date; 

  

	 	3.1.11	such Taxation arises or is increased as a consequence of any change in the accounting policy or practice adopted by the relevant Company after the Closing Date, except where
such change was necessary in order to comply with any applicable legal, regulatory, financial, reporting or other requirement in force on or before the Closing Date; 

  

	 	3.1.12	any Taxation arises or is increased as a consequence of any change in the law (including subordinate legislation) or its interpretation by the relevant courts or in the
generally published interpretation or practice of any Taxation Authority coming into force after Closing or to the extent that such Taxation arises or is increased by a change in any rate of Taxation after Closing; or 

  

	 	3.1.13	the income, profits or gains to which that Taxation is attributable were actually received by any Company on or before the Closing Date but were not reflected in the
Accounts. 

  

	 	3.2	The provisions of [Clause 9.1 (Time Limitation for Claims) and] [TBD] Clause 9.3 (Maximum Liability) of the Agreement shall have effect as if expressly
incorporated in this Deed. 

  

	4	Due Date for Payment 

  

	 	4.1	The due date for payment under Clause 2.1 shall be as follows: 

  

	 	4.1.1	where a liability of the Sellers under this Deed arises from a liability of the Purchaser or any Company to make a payment or an increased payment of Taxation or a repayment
of any payment made prior to Closing in respect of a Taxation Benefit or an amount in respect thereof which has not at the date of the notice under Clause 6.1 been made, then: 

  

	 	(i)	in the case of a payment of Taxation in respect of which there is no provision for payment by instalments, the date falling five (5) Business Days before the latest date on which
that Taxation may be paid to the relevant Taxation Authority without a liability to, or further liability to, interest or penalties accruing; and 

  

 6 

	 	(ii)	in the case of a payment of Taxation in respect of which there is provision for payment by instalments, the date falling five (5) Business Days before each date on which an
instalment of such payment becomes payable (and so on each such date an appropriate proportion of the amount claimed shall be paid, such proportion to be notified by the Purchaser to each of the Sellers at least five (5) Business Days prior to such
date); 

  

	 	4.1.2	in a case within Clause 1.5.1 above, the date falling five (5) Business Days before the latest date on which Taxation becomes payable which would not have been payable had
the relevant Taxation Benefit not been lost, reduced or found to be unavailable without a liability to interest or penalties accruing (the amount payable to the Purchaser on any particular date in respect of the Taxation Benefit shall be only the
amount of Taxation which is payable on each date but which would not have been payable had the Taxation Benefit not been lost, reduced or found to be unavailable); 

  

	 	4.1.3	in a case within Clause 1.5.2 above, the date the repayment of Taxation would have been obtained; 

  

	 	4.1.4	in a case within Clause 1.5.3 above, the date on which the relevant Taxation liability would have been payable without a liability to interest or penalties accruing but for
the setting off of the relevant Taxation Benefit; and 

  

	 	4.1.5	in any other case, five (5) Business Days after a notice containing a written demand in respect of the matter for which the Sellers are liable is received from the Purchaser
pursuant to Clause 6.1 below. 

  

	 	4.2	Any liability of the Sellers hereunder shall be calculated and settled in the same currency as that of any amount payable under Clause 2.1. 

  

	 	4.3	Interest will accrue on any amounts owed by the Sellers or the Purchaser under this Deed from the due date for payment until the date such payment is made in accordance with
Clause 18.13 of the Agreement, provided that interest shall not accrue for any period in respect of which interest due to the relevant Taxation Authority is included in the payment due to be made under this Deed before application of this Clause
4.3. 

  

	5	Pre-Closing Computations 

  

	 	5.1	Subject to, and in accordance with, the provisions of this Clause 5, the Sellers or their duly authorised agents shall, at the their own cost, prepare, submit and deal with
(or procure the preparation and submission of): 

  

	 	5.1.1	all Tax Returns and computations relating to Taxation; and 

  

 7 

	 	5.1.2	all claims, elections, surrenders, disclaimers, notices and consents for Taxation purposes in accordance with Clauses 5.2, and 5.10 below, 

  
 in respect of all periods relevant for Taxation purposes of each Company
ending on or before the Closing Date (the “Pre-Closing Accounting Periods”). 
  

	 	5.2	The Sellers may make, for Pre-Closing Accounting Periods, only such claims, elections, surrenders, disclaimers, notices or consents in respect of each Company that have been
assumed to be made by any Company in the Accounts or the notes to the Accounts. 

  

	 	5.3	The Sellers or their duly authorised agents shall deliver all tax documents relevant to the matters set out in Clause 5.1 above (the “Tax Documents”) to the
Purchaser for authorisation and signing prior to submission. The Purchaser shall procure that the Tax Documents are so authorised and signed as soon as reasonably practicable by or on behalf of the relevant Company. The Sellers hereby agree to
cancel within five (5) Business Days of the Closing Date any existing authority held by any employee or agent of, or an adviser to, the Sellers to sign Tax Documents on behalf of any Company with effect from the Closing Date. If a time limit is
imposed by law, a Taxation Authority or otherwise, in relation to any Tax Documents, the Sellers shall ensure that the Purchaser receives such Tax Documents no later than ten (10) calendar days before the expiry of the time limit.

  

	 	5.4	The Sellers shall procure that: 

  

	 	5.4.1	the Purchaser is kept informed of the progress of all matters relating to the Taxation affairs of the Companies in relation to the Pre-Closing Accounting Periods;

  

	 	5.4.2	the Purchaser receives copies of all written correspondence with any Taxation Authority insofar as it is relevant to the matters referred to in Clause 2.1 and 5.1 above; and

  

	 	5.4.3	the Purchaser’s reasonable written comments in relation to the matters referred to in this Clause 5 are taken into account by the Sellers when dealing with such matters.

  

	 	5.5	The Sellers agree to devote reasonable resources to dealing with pre-Closing Taxation affairs, and shall use reasonable endeavours to ensure that they are finalised as soon
as reasonably practicable. The Sellers shall ensure that all Tax Documents are true and accurate in all respects and are not misleading. 

  

	 	5.6	The Purchaser shall procure that each of the Sellers is sent a draft of any Tax Return of any Company relating to the Straddle Period or a Pre-Closing Accounting Period if
such Tax Return relates to a matter (a “Relevant Matter”) which might affect the liability to Tax of the Sellers or the Sellers’ liability under Clause 2.1 at least ten (10) calendar days before its intended submission to a
Taxation Authority and shall procure that its final form contains such alterations as the Sellers may (acting jointly), within five (5) calendar days of receiving the draft Tax Return, reasonably require to avoid or reduce such liability.

  

	 	5.7	[Botapol Management or its duly authorized agents shall deliver to the Purchaser, within [60 Business Days] of the Closing Date, transfer pricing documentation as defined by Article
9a of the Polish Corporate Income Tax Act (the “TP 

  

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 documentation”) regarding all qualifying transactions completed or entered into by Hillcroft
or Bols after 1 January 2001 and before the [Last Accounting Date].] [Sellers to confirm what information is available and time frame in which such information can be collated and handed to the Purchaser] 
  

	 	5.8	The Purchaser shall further procure that each of the Sellers receives a copy of any correspondence received by, or on behalf of, any Company which relates to any Tax Return
and concerns a Pre-Closing Accounting Period, a Straddle Period or a Relevant Matter and shall (without limitation of the Sellers’ rights under Clause 5.1 and 5.2 above) accept or procure the acceptance of any alteration reasonably required by
the Sellers (acting jointly) to avoid or reduce any liability to Taxation or under Clause 2.1 to any correspondence, election or claim to be sent by, or on behalf of, any Company to any Taxation Authority in relation to such Pre-Closing Accounting
Period or Straddle Period Tax Returns or in connection with a Relevant Matter (having given the Sellers reasonable opportunity (and no less than fifteen (15) Business Days or, if the Purchaser receives such correspondence etc. less than fifteen (15)
Business Days prior to any applicable time limit for it to supply a response, such time as is half of the period between receipt by the Purchaser and the applicable time limit) to consider any such correspondence, claim or election prior to their
being sent. 

  

	 	5.9	The Purchaser shall procure that the Sellers and their duly authorised agents are (on reasonable notice in writing to the Purchaser) afforded such reasonable access to the
books, accounts, personnel, correspondence and documentation of the Companies and such other reasonable assistance as may be required to enable the Sellers to discharge their obligations under this Clause 5. 

  

	 	5.10	Notwithstanding Clause 5.2, neither the Purchaser nor any Company shall be required to submit any claims, elections, surrenders, disclaimers, notices or consents to the
extent that such relate to a Purchaser’s Benefit (except for setting off of any VAT payable by any Company with respect to a Transaction effected or deemed to have been effected by such Company on or before the Closing Date against VAT due from
such Company with respect to Transactions effected or deemed to be effected after the Closing Date), and any agreement by the Purchaser or any Company in this respect shall be without prejudice to any liability of the Sellers that may arise in
respect of such Taxation Benefit. 

  

	 	5.11	The Purchaser agrees that the Sellers shall continue to be in charge of Taxation litigation commenced prior to the Closing Date and shall cause the relevant Companies being
parties to such Taxation litigation not to withdraw any existing powers of attorney to conduct such Taxation litigation in the name and on behalf of the affected Company other than at the joint request of the Sellers, in which case the Purchaser
shall cause the respective Company to issue a new power of attorney to such legal and tax advisors as may be indicated jointly by the Sellers. To the extent any of the: 

  

	 	(i)	liabilities relating to claims being the subject matter of such Taxation litigation; or 

  

	 	(ii)	costs associated with the conduct of such Taxation litigation, 

  
 have been included as a liability or have been otherwise provided for in the Accounts, the Purchaser shall, upon the joint written request of the
Sellers, cause 
  

 9 

 the respective Company to promptly effect payment of the amount of relevant Taxation being the subject
of such litigation and/or the costs associated with the conduct of such Taxation litigation, up to the amount of such Taxation included in the Accounts. 
  

	 	5.12	This Clause 5 shall operate without prejudice to the provisions of Clause 6. 

  

	6	Claims 

  

	 	6.1	If the Purchaser or any Company becomes aware after the Closing Date of any matter which could give rise to a liability under this Deed, the Purchaser shall procure that
notice of that matter is given as soon as reasonably practicable to each of the Sellers and as regards any such matter the Purchaser shall itself or shall procure that the Company concerned shall at the joint request of the Sellers take such action
as they may reasonably request to deal with the matter but subject as set out in Clause 6.2 and Clause 6.3 below and subject to the Purchaser and the relevant Company being indemnified to their reasonable satisfaction by the Sellers against all
losses (including additional Taxation), costs, damages and expenses which may be incurred as a result. 

  

	 	6.2	The Purchaser and each Company shall be at liberty without reference to the Sellers to deal with any matter which could give rise to a liability under this Deed if the
Sellers delay unreasonably in giving any such request as is mentioned in Clause 6.1 above, provided that the Purchaser or Company concerned has notified each of the Sellers of its intention to so deal with the matter and has afforded the Sellers a
period of fifteen (15) Business Days to respond except that if there is a time limit for response to the relevant Taxation Authority and the Purchaser or a Company has notified the claim to the Sellers as soon as reasonably practicable under the
provisions of Clause 6.1 above, then the Sellers shall be afforded such shorter period to respond as shall end at least five (5) Business Days prior to the expiry of such time limit. 

  

	 	6.3	The Purchaser shall procure that the Sellers and their duly authorised agents are (on reasonable notice in writing to the Purchaser) afforded such reasonable access to the
books, accounts, personnel, correspondence and documentation of the Companies and such other reasonable assistance as may be required to enable the Sellers to exercise their rights under this Clause 6. 

  

	7	Purchaser’s Indemnity 

  

	 	7.1	The Purchaser shall pay the relevant Seller an amount equal to the amount of any Taxation (plus any third party costs and expenses which such Seller has incurred or paid in
connection with such liability to Taxation) for which that Seller or any member of that Sellers’ Group has become liable and has paid by virtue of the failure of the Purchaser, a member of the Purchaser’s Group or any Company after the
Closing Date, to discharge such Taxation, except to the extent such Taxation: 

  

	 	7.1.1	is subject to a valid claim under this Deed by the Purchaser which has not been satisfied (or could be the subject of any such valid claim, assuming that a claim was made in
respect of such Taxation), in which case the Purchaser’s liability under this Clause 7.1 shall be reduced by the amount of the relevant Seller’s liability under Clause 2.1 of this Deed in respect of 

  

 10 

 such claim and the Purchaser shall have no further recourse against that Seller in respect of that Tax
liability under Clause 2.1 of this Deed or otherwise (for the avoidance of doubt, the provisions of this Clause 7.1.1 shall not affect any claim the Purchaser may have under Clause 2.1 of this Deed against the other Seller in respect of such Tax
liability); or 
  

	 	7.1.2	has been recovered under any relevant statutory provision. 

  

	 	7.2	The Purchaser agrees to pay to the relevant Seller an amount equal to any VAT for which that Seller has become liable as a result of supplies, acquisition, imports or
Transactions made by any Company after the Closing Date. 

  

	 	7.3	Clauses 4 and 6 above shall apply to Clause 7.1 as they apply to the covenant contained in Clause 2.1, replacing references to the Sellers by references to the Purchaser (and
vice versa) and making any other necessary modifications. 

  

	8	Recovery from Third Parties 

  

	 	8.1	If before the Sellers make any payment in discharge of any claim by the Purchaser under this Deed, the Purchaser or any Company recovers or is or becomes entitled to recover
(whether by payment, discount, credit, relief or otherwise) from any other person (other than a Company), including for the avoidance of doubt any Taxation Authority, any sum in respect of that Taxation, then: 

  

	 	8.1.1	the Purchaser shall procure that before steps are taken to enforce a claim against the Sellers following notification under Clause 6.1 above, all reasonable steps are taken
to enforce recovery from such other person, subject to the Purchaser and the relevant Company being indemnified to their reasonable satisfaction by the Sellers against all losses (including additional Taxation), damages, costs and expenses which may
be reasonably incurred, and keep the Sellers fully informed of the progress of any action taken; and 

  

	 	8.1.2	any actual recovery by the Purchaser or any Company, less any reasonable third party costs and expenses of recovery (including any Taxation which would not have been incurred
but for the recovery of that amount) shall reduce each Seller’s liability by an equal amount being half the amount recovered from any third person (other than a Company) or satisfy, as the case may be, such claim to the extent of such recovery.

  

	 	8.2	If the Sellers pay an amount in respect of Taxation under Clause 2.1 and any Company is or becomes entitled to recover (whether by payment, discount, credit, relief or
otherwise) from any other person (other than a Company) any sum in respect of that Taxation, then the Purchaser shall: 

  

	 	8.2.1	within five (5) Business Days of being or becoming so entitled, notify each Seller of such entitlement and shall, if so requested by the Sellers acting jointly and subject to
the Purchaser and that Company being indemnified to their reasonable satisfaction by the Sellers against all losses (including additional Taxation), damages, reasonable costs and expenses which may be reasonably incurred, take or procure that the
relevant Company takes all reasonable steps to enforce that recovery (keeping the Sellers fully informed of the progress of any action taken); and 

  

 11 

	 	8.2.2	within five (5) Business Days of recovering any such amount, account to each Seller an amount equal to (a) half of the whole of any sum so recovered (including any interest
or repayment supplement paid to the Purchaser or any Company) less any reasonable third party costs and expenses of recovery (including any Taxation which would not have been incurred but for the recovery of that amount) or, if less, (b) the amount
of any payment previously made by each of the Sellers in respect of such Taxation. 

  

	9	Savings 

  

	 	9.1	If the auditors for the time being of any Company certify in writing (at the joint request and expense of the Sellers) to the Sellers and the Purchaser that Taxation which
has resulted in a payment by the Sellers falling due pursuant to Clause 2.1 or the TaxWarranties gives rise to an actual saving (the “Saving”) of Taxation for any Company or the Purchaser, then an amount equal to half of the amount
of such Saving shall be allocated to each Seller and either (a) set off against any payment then due from that Seller under this Deed, or (to the extent that it is not so set off) (b) paid by the Purchaser to that Seller within five (5) Business
Days of the Saving being obtained. 

  

	 	9.2	If any Company or the Purchaser discovers that there has been a Saving, the Purchaser shall, or shall procure that the Company concerned shall, as soon as reasonably
practicable give full details thereof to the Sellers and supply to the Sellers such information as they may reasonably require (acting jointly) to verify the amount of the Saving. 

  

	 	9.3	For the purposes of Clause 9.1 a person obtains a Saving if as a result of the Taxation which results in a claim by the Purchaser under Clause 2.1 that person is relieved in
whole or in part of a liability to make some other payment of Taxation which it would otherwise have been liable to make or obtains a right to repayment of Taxation which would not otherwise have been available. 

  

	 	9.4	The Purchaser shall procure that each Company shall utilise any available Taxation Benefits to create and maximise a Saving, provided that the Purchaser shall not be obliged
to procure that such Taxation Benefits are so utilised to the extent other Purchaser’s Benefits are available to be utilised in priority to such Taxation Benefits. 

  

	10	Tax Groups 

  
 The Sellers represent to the Purchaser that no Company is a member of a group which makes a consolidated Tax Return. 
  

	11	Withholdings and Deductions 

  

	 	11.1	All sums payable under this Deed shall be paid free and clear of all deductions, withholdings, set-offs or counterclaims whatsoever save only as may be required by law. If
any deductions or withholdings are required by law the party making the payment shall (except in the case of interest payable under Clause 4.3) be obliged to pay to the other party such sum as will after such deduction or withholding has been made
leave the other party with the same amount as it would have been entitled to receive in the absence of any such requirement to make a deduction or 

  

 12 

 withholding, provided that if either party to this Deed shall have assigned the benefit (in whole or in
part) of this Deed, then the liability of the other party under this Clause 11.1 shall be limited to that (if any) which would have been had no such assignment taken place. 
  

	 	11.2	If any Taxation Authority charges to Taxation (or would charge to Taxation in the absence of any Taxation Benefits available to the recipient) any sum paid under this Deed,
then the amount so payable shall be grossed up by such amount as will ensure that after payment of the Taxation so charged (or which would have been so charged if any Taxation Benefits available to the recipient were ignored) there shall be left a
sum equal to the amount that would otherwise be payable under this Deed, provided that if either party to this Deed shall have assigned the benefit (in whole or in part) of this Deed, then the liability of the other party under this Clause 11.2
shall be limited to that (if any) which would have been had no such assignment taken place. 

  

	 	11.3	If the recipient of a payment made under this Deed receives a credit for, or refund of, any Taxation payable by it or similar benefit by reason of any deduction or
withholding for or on account of Taxation, then it shall reimburse to the other party such part of such additional amounts paid to it pursuant to Clause 11.2 above as the recipient of the payment certifies to the other party will leave it (after
such reimbursement) in no better and no worse position than it would have been in if the other party had not been required to make such deduction or withholding. 

  

	12	Miscellaneous 

  
 The provisions of Clause 11 (Remy Cointreau Guarantee), 17 (Confidentiality) and 18 (Other Provisions) of the Agreement shall apply to this Deed with any
necessary changes. 
  

	13	Effect of Discharge of Claim 

  
 For the avoidance of doubt, the Sellers shall remain liable in accordance with the terms of this Deed notwithstanding that any Taxation giving rise to a
liability to make a payment under Clause 2.1 of this Deed is or has been discharged or suffered by the relevant Company, whether before or after the date of this Deed and whether by payment or by the loss or utilisation of any Taxation Benefit or
right to repayment of Taxation. 
  

	14	Effect of Waiver, Release, etc. 

  
 Any liability under this Deed may in whole or in part be released, compounded or compromised or time or indulgence may be given by the person to whom the
liability is owed in its absolute discretion as regards any of the persons under such liability without this in any way prejudicing or affecting its rights against any other or others of those persons under the same or a like liability whether joint
and several or otherwise. 
  

	15	Illegality 

  
 If at any time any provision of this Deed is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, neither the
legality, validity or enforceability of such provision under the law of any other jurisdiction, nor the legality, validity or enforceability of any other provision of this Deed, shall in any way be affected or impaired thereby. 
  

 13 

	16	Governing Law 

  
 This Deed shall be governed by and construed in accordance with English law. 
  

	17	Deed 

  
 The signature or sealing of this document by or on behalf of a party shall constitute an authority to the solicitors, or an agent or employee of the solicitors, acting for that party in connection with this document
to deliver it as a deed on behalf of that party. 
  
 In witness whereof
this document has been duly executed as a Deed the day and year first before written. 
  

 14 

			
	[EXECUTED as a DEED by [·]	 	}
	  
 (Director)
	 
	  
 duly authorised on behalf of
 BOTAPOL MANAGEMENT B. V.
	 
	  
 EXECUTED as a DEED by
[·]
	 	 }

	  
 (Director)
	 
	  
 duly authorised on
behalf of
	 
	 TAKIRRA INVESTMENT
 CORPORATION
N.V.
	 	 
	  
 EXECUTED as a DEED by
[·]
	 	 }

	  
 (Director)
	 
	  
 duly authorised on
behalf of
 RÉMY COINTREAU S.A.
	 
		
	 EXECUTED as a DEED by [·]
	 	 }

	  
 (Director)
	 
	  
 duly authorised on
behalf of
 CAREY AGRI INTERNATIONAL
 Sp. z o.o.
	 

  

 15 

			
	 EXECUTED as a DEED by [·]
	 	 }

	  
 (Director)
	 
	  
 duly authorised on
behalf of
 CENTRAL EUROPEAN DISTRIBUTION
 CORPORATION]
	 

  

 16Exhibit 4.3

 FIRST SUPPLEMENTAL INDENTURE 
  
 KH FUNDING COMPANY, a Maryland corporation, 
 as obligor 
  
 Series 3 Senior Secured Investment Debt Securities 
  
 $120,000,000.00 
  
 and 
  
 Series 4 Subordinated Unsecured Investment Debt Securities 

 
 $30,000,000.00 
  
 WELLS FARGO BANK, National Association, a National Banking Association,

 as trustee 
  
 Dated as of July 1, 2005 
  
 Supplementing the Original Indenture 
 Dated as of August 2, 2004 

 TABLE OF CONTENTS 
  

							
	 ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE
	  	1
	 	  	    Section 1.1	 	Definitions	  	2
	 	  	    Section 1.5	 	Recitals; Duties of Trustee	  	2
	 	  	    Section 1.6	 	Relationship to Original Indenture and Additional Supplemental Indentures	  	2
		
	ARTICLE II. THE ADDITIONAL SECURITIES	  	3
	 	  	    Section 2.1(a)	 	Amount; Accounts; Interest; Maturity – Additional Securities	  	3
	 	  	    Section 2.14	 	Lien upon Collateral	  	4
		
	ARTICLE IV. COVENANTS	  	4
	 	  	    Section 4.4	 	Compliance Certificate	  	4
		
	ARTICLE VI. DEFAULTS AND REMEDIES	  	4
	 	  	    Section 6.10	 	Priorities	  	4
		
	ARTICLE VII. TRUSTEE	  	5
	 	  	    Section 7.10	 	Eligibility; Disqualification	  	5
		
	ARTICLE X. SUBORDINATION	  	5
	 	  	    Section 10.2	 	Liquidation; Dissolution; Bankruptcy	  	5
	 	  	    Section 10.6	 	Subrogation	  	6
	 	  	    Section 10.7	 	Relative Rights	  	6
	 	  	    Section 10.8	 	Subordination May Not Be Impaired by the Company or Holders of Senior Debt	  	7
	 	  	    Section 10.9	 	Distribution or Notice to Representative	  	7
		
	ARTICLE XI. MISCELLANEOUS	  	8
	 	  	    Section 11.16	 	Incorporation of Supplemental Indenture into Indenture	  	8

  

 - ii - 

 CROSS-REFERENCE TABLE* 
  

			
	 Trust Indenture Act
 Section

	 	 Indenture
 Section

	 305(a)(1)
	 	7.10
	    (a)(2)
	 	7.10
	    (a)(3)
	 	NA
	    (a)(4)
	 	NA
	    (a)(5)
	 	NA
	    (b)
	 	7.8, 7.10
	    (c)
	 	NA
	 311(a)
	 	7.11
	    (b)
	 	7.11
	    (c)
	 	NA
	 312(a)
	 	2.5
	    (b)
	 	11.3
	    (c)
	 	11.3
	 313(a)
	 	7.6
	    (b)(1)
	 	NA
	    (b)(2)
	 	7.6
	    (c)
	 	7.6, 11.2
	    (d)
	 	7.6
	 314(a)
	 	4.3, 4.4, 11.2
	    (b)
	 	4.4
	    (c)(1)
	 	11.4
	    (c)(2)
	 	11.4
	    (c)(3)
	 	NA
	    (d)
	 	NA
	    (e)
	 	11.5
	    (f)
	 	NA
	 315(a)
	 	7.1(b)
	    (b)
	 	7.5, 11.2
	    (c)
	 	7.1(a)
	    (d)
	 	7.1(c)
	    (e)
	 	6.11
	 316(a)(last sentence)
	 	2.10
	    (a)(1)(A)
	 	6.5
	    (a)(1)(B)
	 	6.4
	    (a)(2)
	 	NA
	    (b)
	 	6.7
	    (c)
	 	NA
	 317(a)(1)
	 	6.8
	    (a)(2)
	 	6.9
	    (b)
	 	2.4
	 318(a)
	 	11.1

	NA	means not applicable 

	*	This Cross Reference Table is not part of the Indenture 

  

 - iii - 

 THIS FIRST SUPPLEMENTAL INDENTURE dated as of July 1, 2005 between KH Funding Company, a Maryland
corporation, as issuer (the “Company”), and Wells Fargo Bank, National Association, a National Banking Association, as trustee (the “Trustee”) (this “First Supplemental Indenture”), supplements and amends the Indenture
dated as of August 2, 2004 (the “Original Indenture”) between the Company, and the Trustee. 
  
 WITNESSETH THAT: 
  
 WHEREAS, the Company and the Trustee have heretofore executed and delivered the Original Indenture to provide for the issuance of the Company’s debt
securities to be issued in one or more series; 
  
 WHEREAS,
Section 2.1 of the Original Indenture provides, among other things, that the Company may issue, from time to time in accordance with the provision of the Original Indenture, Additional Securities; 
  
 WHEREAS, the Company desires to provide for the issuance of Additional
Securities and to set forth the terms that will be applicable thereto; 
  
 WHEREAS, all action on the part of the Company necessary to authorize the issuance of the Additional Securities under the Original Indenture and this First Supplemental Indenture (the Original Indenture, as amended and supplemented by this
First Supplemental Indenture, being hereinafter called this “Indenture”) has been duly taken; and 
  
 WHEREAS, all acts and things necessary to make the Additional Securities, when executed by the Company and authenticated and delivered by the Trustee as
provided in the Original Indenture, the legal, valid and binding obligations of the Company, and to constitute these presents a valid and binding supplemental indenture according to its terms binding on the Company, have been done and performed, and
the execution of this First Supplemental Indenture and the creation and issuance under this Indenture of the Additional Securities have in all respects been duly authorized, and the Company in the exercise of the legal right and power vested in it,
executes this First Supplemental Indenture and proposes to create, execute, issue and deliver the Additional Securities. 
  
 NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH: 
  
 That, in order to establish the terms and provisions of, and to authorize the authentication and delivery of, the Additional
Securities, the Company and the Trustee agree to supplement the Original Indenture as follows for the benefit of each other and for the equal and ratable benefit of the Holders of the Additional Securities issued pursuant to the Company’s
registration statement on Form SB-2 declared effective by the Securities and Exchange Commission on or about July 1, 2005: 
  
 ARTICLE I. 
 DEFINITIONS AND INCORPORATION

 BY REFERENCE 
  
 Section 1.1 of Article I is supplemented to include definitions of Collateral, Lien and Lien Documents, and to delete in its entirety the definition of
Senior Debt and substitute the following in its stead. Article I is further supplemented to include Sections 1.5 and 1.6 as set forth below. 

 Section 1.1. Definitions. 
  
 Capitalized words and terms used in this First Supplemental Indenture and not otherwise defined herein shall have the
meanings specified in this Section 1.1. Capitalized words and terms used in this First Supplemental Indenture and not defined in this Section 1.1 shall, except as otherwise stated herein, have the meanings assigned to them in the Original Indenture.

  
 “Collateral” shall mean all of the assets of Company
on, in or with respect to which a Lien can be created and perfected pursuant to the applicable Uniform Commercial Code. 
  
 “Lien” shall mean any security interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
otherwise) or charge against or interest in the Collateral to secure the repayment of all Senior Debt. 
  
 “Lien Documents” shall mean all agreements, security agreements, control agreements, mortgages or other instruments or documents executed and
delivered to evidence, create or perfect the Lien granted by the Company in and to the Collateral in favor of the Trustee for the ratable benefit of the Holders of Senior Debt, as now existing or hereafter executed, modified, amended, substituted or
replaced. Attached hereto as Exhibit      is a copy of an executed counterpart of a Security Agreement between the Company and the Trustee, a Deposit Account Control Agreement among the Company, the Trustee and the banking
institution a party thereto, and a Securities Intermediary Control Agreement among the Company, the Trustee and the brokerage company a party thereto. 
  
 “Senior Debt” means the Series 3 Senior Secured Securities and any Indebtedness (whether outstanding on the date hereof or thereafter created)
incurred by the Company in connection with borrowings by the Company (including its subsidiaries) from a bank, trust company, insurance company, any other institutional lender or other entity which lends funds in connection with its primary business
activities whether such Indebtedness is or is not specifically designated by the Company as being “Senior Debt” in its defining instruments. 
  
 Section 1.5. Recitals; Duties of Trustee. 
  
 The recitals contained in this First Supplemental Indenture are made by the Company and not by the Trustee; and all of the provisions contained in the
Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full. 
  
 Section 1.6. Relationship to Original Indenture and Additional Supplemental
Indentures. 
  
 (a) The Original Indenture and this First
Supplemental Indenture shall be read, taken, and construed as one and the same instrument. However, in the event of a conflict or a difference between the provisions of the Original Indenture and this First Supplemental Indenture, the provisions of
this First Supplemental Indenture shall control. The provisions hereof shall remain in effect and shall be deemed a part of the Original Indenture for so long as the Investment Debt Securities remain Outstanding. Except as amended and supplemented
hereby, the provisions of the Original Indenture shall remain in full force and effect. 
  
 (b) Additional Supplemental Indentures may be executed and delivered in accordance with the provisions of the Original Indenture. Nothing herein contained shall be deemed to relieve the Company from its obligations
under any such Supplemental Indenture for so long as it remains in effect and, except as expressly provided in the Original Indenture, no provision of any such Supplemental Indenture shall be deemed to relieve the Company from its respective
obligations under this First Supplemental Indenture for so long as it remains in effect. 
  

 - 2 - 

 ARTICLE II. 
 THE SECURITIES 
  
 Article II is
supplemented to add new Sections 2.1(A) and 2.14 as follows: 
  
 Section 2.1(A).
Amount; Accounts; Interest; Maturity – Additional Securities. 
  
 The aggregate principal amount of Additional Securities that may be authenticated and delivered under this First Supplemental Indenture is $108,000,000 (the “Additional Securities”). The Additional Securities may be subject to
notations, legends or endorsements required by law, applicable rules and regulations and agreements to which the Company is subject or usage. 
  
 The Company shall issue the Additional Securities as provided in Section 2.12 of the Original Indenture. The record of beneficial ownership of the
Additional Securities shall be maintained and updated by the Company through the establishment and maintenance of Accounts. Each Additional Security shall be in such denominations as may be designated from time to time by the Company but in no event
in an original denomination less than $5,000. This minimum amount may be increased or decreased from time to time by the Company and the Company, in its sole discretion, may accept a lesser amount from any Holder. The Investment Debt Securities
shall be Fixed Term Notes and Demand Notes. The Fixed Term Notes shall have maturity dates of one year, three years and five years. The Demand Notes shall have demand periods of one day or thirty days. 
  
 Each Additional Security shall bear interest from and commencing on its
Interest Accrual Date at such rate of interest as the Company shall determine from time to time; provided, however, that (i) the Series 3 Senior Secured Security One Year Fixed Term Notes, Three Year Fixed Term Notes and Five Year Fixed Term Notes
shall pay interest at an annual interest rate fixed at the time of issuance with the initial interest rates being 6.25%, 6.60% and 6.85% respectively, (ii) the Series 3 Senior Secured Security One Day Demand Notes and the Thirty Day Demand Notes
shall pay interest at a variable annual interest rate with the initial rates being 5.00% and 5.25% respectively, and (iii) the Series 4 Subordinated Unsecured Security One Year Fixed Term Notes, Three Year Fixed Term Notes and Five Year Fixed Term
Notes shall pay interest at an annual interest rate fixed at the time of issuance with the initial interest rates being 7.00%, 7.25% and 7.75% respectively. The Company may change the interest rates from time to time by filing a supplement to the
Company’s prospectus. 
  
 Interest on an Investment Debt
Security will compound daily and will have interest paid, at the election of the Holder, either (i) monthly, quarterly, semi-annually or annually, or (ii) accrued and credited as principal to the Holder’s Account. To the extent any applicable
interest payment date is not a Business Day, then interest shall be paid instead on the next succeeding Business Day. All interest payments on the Investment Debt Securities shall be approved prior to payment by the Company’s Treasurer.

  
 The Company will give each Holder of a Fixed Term Note
(existing as of the applicable Maturity Record Date) a written notice at least seven days prior to the Maturity Date of the Fixed Term Note held by such Holder reminding such Holder of the pending maturity of the Fixed Term Note and noticing the
Holder of the Company’s intention to repay, or if the Company does not intend to repay the Fixed Term Note, reminding the Holder that they must choose to either (i) redeem the Fixed Term Note, (ii) extend the Fixed Term Note, or (iii)
transition the Fixed Term Note into a new account. If the Company gives notice to a Holder of the Company’s intention to repay a Fixed Term Note at maturity, no interest will 
  

 - 3 - 

 accrue after the Maturity Date for such Fixed Term Note if payment is timely made. Otherwise, if a Holder requests
repayment within seven days after the Maturity Date, the Company will pay interest on the Fixed Term Note during the period after the Fixed Term Note’s Maturity Date and prior to redemption at the rate being paid on such Fixed Term Note
immediately prior to its maturity. 
  
 The terms and provisions
contained in the Investment Debt Securities shall constitute, and are hereby expressly made, a part of this First Supplemental Indenture and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this First
Supplemental Indenture, and the Holders by accepting the Investment Debt Securities, expressly agree to such terms and provisions and to be bound thereby. In case of a conflict, the provisions of this First Supplemental Indenture shall control.

  
 Section 2.14. Lien upon Collateral.

  
 The Trustee shall hold a Lien upon all right, title and
interest of the Company in and to the Collateral, whether now owned or hereafter acquired, including all property described in the Lien Documents, as such Lien Documents may hereafter be modified, amended, substituted or replaced. 
  
 ARTICLE IV. 
 COVENANTS 
  
 Article IV is supplemented to include a Section 4.4(d) as follows:: 
  
 Section 4.4. Compliance Certificate. 
  
 *        *        *        * 
  
 (d) The Company shall deliver to the Trustee such Opinions of Counsel as required by TIA ss. 314(b) or any other applicable law. 
  
 ARTICLE VI. 
 DEFAULTS AND REMEDIES 
  
 Article VI is supplemented to delete Section 6.10 in its entirety and substitute the following in its stead: 
  
 Section 6.10. Priorities. 
  
 If the Trustee collects any money pursuant to this Article, it shall, subject to the provisions of Article X hereof, pay out the money in the following
order: 
  
 First: to the Trustee, its agents and attorneys for
amounts due under Section 7.7 of the Original Indenture, including payment of all compensation, expenses and liabilities incurred, and all advances made, if any, by the Trustee and the costs and expenses of collection; 
  
 Second: to holders of Senior Debt as to interest and then principal, pro rata
according to the principal amount of Senior Debt held by such holders; and 
  
 Third: to Holders for amounts due and unpaid on the Series 4 Unsecured Securities for interest and then principal; and 
  

 - 4 - 

 Fourth: to the Company or to such party as a court of competent jurisdiction shall direct. 
  
 The Trustee may fix a record date and payment date for any payment to
Holders. 
  
 ARTICLE VII. 
 TRUSTEE 
  
 Article VII is supplemented to delete the second paragraph of Section 7.10 in its entirety and substitute the following in its stead: 
  
 Section 7.10. Eligibility; Disqualification. 
  
 *        *        *        * 
  
 This Indenture shall always have a Trustee who satisfies the requirements of TIA ss. 305(a)(1). The Trustee is subject to TIA ss. 305(b). 
  
 ARTICLE X. 
 SUBORDINATION 
  
 Article X is supplemented to delete Sections 10.2, 10.6, 10.7, 10.8 and 10.9 in their entirety and substitute the following in its stead: 
  
 Section 10.2. Liquidation; Dissolution; Bankruptcy. 
  
 (a) Upon any payment or distribution of assets of the Company of any kind or character, whether in cash, property or
securities, to creditors upon (i) any dissolution or winding-up or total or partial liquidation or reorganization of the Company whether voluntary or involuntary and whether or not involving insolvency or bankruptcy, (ii) any bankruptcy or
insolvency case or proceeding or any receivership, liquidation, reorganization or other similar case or proceeding in connection therewith, relative to the Company or to its assets, or (iii) any assignment for the benefit of creditors or any other
marshaling of assets of the Company, all obligations due, or to become due, in respect of Senior Debt (including interest after the commencement of any such proceeding at the rate specified in the applicable Senior Debt) shall first indefeasibly be
paid in full, or provision shall have been made for such payment, in cash, cash equivalents or otherwise in a manner satisfactory to the holders of Senior Debt, before any payment is made on account of the principal of, premium, if any, or interest
on the Series 4 Subordinated Unsecured Securities, except that Holders of Series 4 Subordinated Unsecured Securities may receive securities that are subordinated to at least the same extent as the Series 4 Subordinated Unsecured Securities are to
(x) Senior Debt and (y) any securities issued in exchange for Senior Debt. Upon any such dissolution winding-up, liquidation or reorganization, any payment or distribution of assets of the Company of any kind or character, whether in cash, property
or securities, to which the Holders of the Series 4 Subordinated Unsecured Securities or the Trustee under this Indenture on behalf of the Holders of Series 4 Subordinated Unsecured Securities would be entitled, except for the provisions hereof,
shall be paid by the Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, or by the Holders of the Series 4 Subordinated Unsecured Securities or by the Trustee under this
Indenture if received by them or the Trustee on behalf of the Holders of the Series 4 Subordinated Unsecured Securities, directly to the holders of Senior Debt (pro rata to such holders on the basis of the amounts of Senior Debt held by such
holders) or their representative or representatives, or to the trustee or trustees under any indenture pursuant to which any of such Senior Debt may have been issued, as their interests may appear, for application to the payment of Senior Debt

  

 - 5 - 

 remaining unpaid until all such Senior Debt has been indefeasibly paid in full, or provisions shall have been made for
such payment, in cash, cash equivalents or otherwise in a manner satisfactory to the holders of Senior Debt, after giving effect to any concurrent payment, distribution or provision therefor to or for the holders of Senior Debt. 
  
 (b) For purposes of this Article X, the words “cash, property or
securities” shall not be deemed to include securities of the Company or any other corporation provided for by a plan of reorganization or readjustment which are subordinated, to at least the same extent as the Series 4 Subordinated Unsecured
Securities, to the payment of all Senior Debt then outstanding or to the payment of all securities issued in exchange therefor to the holders of Senior Debt at the time outstanding. The consolidation of the Company with, or the merger of the Company
with or into, another corporation or the liquidation or dissolution of the Company following the conveyance or transfer of its property as an entirety, or substantially as an entirety, to another corporation upon the terms and conditions provided in
Article V shall not be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this Section if such other corporation shall, as part of such consolidation, merger, conveyance or transfer, comply with the conditions stated
in Article V of the Original Indenture. 
  
 Section 10.6. Subrogation. 
  
 After all Senior Debt is
paid in full, in cash, cash equivalents or otherwise in a manner satisfactory to the holders of such Senior Debt, and until the Series 4 Subordinated Unsecured Securities are paid in full, Holders of Series 4 Subordinated Unsecured Securities shall
be subrogated (equally and ratably with all other Indebtedness pari passu with the Series 4 Subordinated Unsecured Securities) to the rights of holders of Senior Debt to receive distributions applicable to Senior Debt to the extent that
distributions otherwise payable to the Holders of the Series 4 Subordinated Unsecured Securities have been applied to the payment of Senior Debt. A distribution made under this Article to holders of Senior Debt which otherwise would have been made
to Holders of the Series 4 Subordinated Unsecured Securities is not, as between the Company and Holders, a payment by the Company on the Senior Debt. 
  
 Section 10.7. Relative Rights. 
  
 This Article defines the relative rights of Holders of the Series 4 Subordinated Unsecured Securities and holders of Senior Debt. Nothing in this
Indenture shall: 
  
 (1) impair, as between the Company and
Holders of the Series 4 Subordinated Unsecured Securities, the obligations of the Company, which are absolute and unconditional, to pay principal of and interest on the Series 4 Subordinated Unsecured Securities in accordance with their terms;

  
 (2) affect the relative rights of Holders of the Series 4
Subordinated Unsecured Securities and creditors of the Company other than their rights in relation to holders of Senior Debt; or 
  
 (3) prevent the Trustee or any Holder of the Series 4 Subordinated Unsecured Securities from exercising its available remedies upon a Default or Event of
Default, subject to the rights of holders and owners of Senior Debt to receive distributions and payments otherwise payable to Holders. 
  
 If the Company fails because of this Article to pay principal of or interest on a Series 4 Subordinated Unsecured Security on the due date, the failure is
still a Default or Event of Default. 
  

 - 6 - 

 Section 10.8. Subordination May Not Be Impaired by the Company or Holders of Senior Debt. 
  
 No right of any present or future holder of Senior Debt to enforce the
subordination of the Indebtedness evidenced by the Series 4 Subordinated Unsecured Securities and the Obligations related thereto shall be prejudiced or impaired by any act or failure to act by any such holder or by the Company, the Trustee or any
Agent or by the failure of the Company to comply with this Indenture, regardless of any knowledge thereof which any such holder may have or otherwise be charged with. 
  
 Without limiting the effect of the preceding paragraph, any holder of Senior Debt may at any time and from time to time
without the consent of or notice to any other holder or to the Trustee, without impairing or releasing any of the rights of any holder of Senior Debt under this Indenture, upon or without any terms or conditions and in whole or in part: 

 
 (a) change the manner, place or term of payment, or change or extend the
time of payment of, renew or alter any Senior Debt or any other liability of the Company to such holder, any security therefor, or any liability incurred directly or indirectly in respect thereof, and the provisions of this Article X shall apply to
the Series 4 Subordinated Unsecured Securities as so changed, extended, renewed or altered; 
  
 (b) notwithstanding the provisions of Section 5.1 of this Indenture, sell, exchange, release, surrender, realize upon or otherwise deal with in any manner and in any order any property by whomsoever at any time
pledged or mortgaged to secure, or howsoever securing, any Senior Debt or any other liability of the Company to such holder or any other liabilities incurred directly or indirectly in respect thereof or hereof or any offset there against;

  
 (c) exercise or refrain from exercising any rights or remedies
against the Company or others or otherwise act or refrain from acting or, for any reason, fail to file, record or otherwise perfect any security interest in or lien on any property of the Company or any other Person; and 
  
 (d) settle or compromise any Senior Debt or any other liability of the
Company to such holder, or any security therefor, or any liability incurred directly or indirectly in respect thereof. 
  
 All rights and interests under this Indenture of any holder of Senior Debt and all agreements and obligations of the Trustee, the Holders, and the Company
under Article VI and under this Article X shall remain in full force and effect irrespective of (i) any lack of validity or enforceability of any agreement or instrument relating to any Senior Debt or (ii) any other circumstance that might otherwise
constitute a defense available to, or a discharge of, the Trustee, any Holder, or the Company. 
  
 Any holder of Senior Debt hereby authorized to demand specific performance of the provisions of this Article X, whether or not the Company shall have complied with any of the provisions of this Article X applicable to
it, may demand such at any time when the Trustee or any Holder of the Series 4 Subordinated Unsecured Securities shall have failed to comply with any of these provisions. The Trustee and the Holders of the Series 4 Subordinated Unsecured Securities
irrevocably waive any defense based on the adequacy of a remedy at law that might be asserted as a bar to such remedy of specific performance. 
  
 Section 10.9. Distribution or Notice to Representative. 
  
 Whenever a distribution is to be made or a notice given from the Company or the Trustee to holders of Senior Debt, the distribution may be made and the
notice given to such Holder or his/her/its designee. 
  
 Upon any payment or
distribution of assets of the Company referred to in this Article X, the Trustee and 
  

 - 7 - 

 the Holders of the Series 4 Subordinated Unsecured Securities shall be entitled to rely upon any order or decree made by
any court of competent jurisdiction in which bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings are pending or upon any certificate of any representative of any holder of Senior Debt or of the liquidating trustee or agent
or other Person making any distribution, delivered to the Trustee or to the Holders, for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of the Senior Debt and other indebtedness of the Company, the
amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article X. 
  
 ARTICLE XI 
 MISCELLANEOUS 
  
 Article XI is supplemented to include the following: 
  
 Section 11.16. Incorporation of Supplemental Indenture into Indenture. 
  
 This Supplemental Indenture is executed by the Company and the Trustee
pursuant to the provisions of Section 2.1 of the Original Indenture, and the terms and conditions hereof shall be deemed to be part for all purposes upon the effectiveness of this First Supplemental Indenture. This Indenture, as amended and
supplemented by this First Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 - 8 - 

 SIGNATURES 
  
 IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed as of the day and year first written above.

  

			
	ATTEST:	 	KH FUNDING COMPANY
		
	 /s/ James E. Parker

	 	 /s/ Robert L. Harris

	 	 	Robert L. Harris
	 	 	President
		
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	 	as Trustee
		
	 	 	 /s/ Robert L. Reynolds

	 	 	Robert L. Reynolds
	 	 	Vice President

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