Document:

Exhibit 4.1.9

 

CONSENT AND RELEASE

 

THIS CONSENT AND RELEASE,
dated as of December 21, 2009 (this “Release”),
between MGP INGREDIENTS, INC., a Kansas
corporation (the “Borrower”), and
WELLS FARGO BANK, NATIONAL ASSOCIATION
(the “Lender”) acting through its Wells Fargo
Business Credit operating division.

 

WITNESSETH:

 

WHEREAS, pursuant to that
certain Credit and Security Agreement, dated as of July 21, 2009 (as
amended, restated, supplemented or otherwise modified from time to time, the “Credit  Agreement”; capitalized
terms defined therein and used herein having the meanings given to them in the
Credit Agreement), between the Borrower and the Lender, the Lender has agreed
to make extensions of credit to the Borrower upon the terms and subject to the
conditions set forth therein;

 

WHEREAS, pursuant to the
Credit Agreement, the Borrower granted to the Lender a lien on and security
interest in the Collateral of the Borrower, including without limitation all of
the personal property assets of the Borrower set forth on Exhibit A
attached hereto (the “Flour  Equipment”) located in the Flour Mill at 1100 Main Street in
Atchison, Kansas; and

 

WHEREAS, pursuant to that
certain Asset Purchase Agreement dated as of approximately even date herewith,
by and between Borrower and ConAgra Foods Food Ingredients Company, Inc.,
a Delaware corporation (“ConAgra”),
ConAgra has agreed to purchase the Flour Equipment (the “Flour
Equipment  Sale”).

 

NOW, THEREFORE, in
consideration of the premises and the agreements hereinafter contained, it is
hereby agreed as follows:

 

1.             Consent to Sale
and Release of Flour Equipment.  The Lender hereby consents to the Flour
Equipment Sale subject to the following conditions, all of which shall survive
the initial closing of the Flour Equipment Sale:

 

(a)           The aggregate proceeds from the Flour Equipment Sale
shall not be in an amount less than approximately $500,000 (the “Sale Proceeds”).

 

(b)           All Sale Proceeds (other than amounts used to pay
fees and costs due by Borrower associated with the Flour Equipment Sale) shall
be wired concurrent with the closing of the Flour Equipment Sale to the
following account of Borrower established at Lender:

 

Bank Name: Wells Fargo Bank

Wire Routing Transit Number: 121000248

City, State: San Francisco, CA

Account Number: 4121928048

Title of Account: MGP Ingredients, Inc.

 

 

2.             Release of Liens.  Upon satisfaction of the conditions set forth
in Section 1 hereto, upon the closing of the Flour Equipment Sale, the
Lender hereby releases and terminates any and all security interests and liens
held by or for the benefit of the Lender (to the extent Lender had a security
interest or lien) in the assets comprising the Flour Equipment.

 

3.             Representations
of the Borrower.  The
Borrower hereby represents and warrants to the Lender that (a) upon
execution of this Release and at the time of the Flour Equipment Sale, it is in
compliance with the Credit Agreement and the other Loan Documents, and (b) before
and after giving effect to the disposition of the Flour Equipment, no Default or
Event of Default has occurred and is continuing as of the date hereof and as of
the closing date of the Flour Equipment Sale.

 

4.             Governing Law,
Etc.  This Release shall be governed
by, and construed in accordance with, the law of the State of Minnesota.  This Release may be executed in any number of
counterparts, each of which shall be an original, and all of which, when taken
together, shall constitute one agreement. 
Delivery of an executed signature page of this Release by facsimile
or electronic transmission shall be effective as delivery of a manually
executed counterpart hereof.

 

5.             Third Party
Beneficiaries.  This
Release is not intended to confer any legal or equitable rights or remedies
upon any party other than the parties hereto.

 

[Signatures follow on next
page]

 

2

 

IN WITNESS WHEREOF, the
parties hereto have executed this Release as of the date first written above.

 

	
  WELLS FARGO BANK,

  	
   

  	
  MGP INGREDIENTS, INC.

  
	
  NATIONAL ASSOCIATION

  	
   

  	
  a Kansas corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Becky A. Koehler

  	
   

  	
  By:

  	
  /s/ Timothy W. Newkirk

  
	
  Name:

  	
  Becky A. Koehler

  	
   

  	
  Name:

  	
  Timothy W. Newkirk

  
	
  Title:

  	
  Vice President

  	
   

  	
  Title:

  	
  President

  

 

3

 

EXHIBIT A

 

Flour Equipment to be
Released

 

	
   

  	
   

  	
  MGP Mill
  Equipment Removal List

  	
   

  	
   

  
	
  Location

  	
   

  	
  Equipment

  	
   

  	
  Manufacture

  
	
  Elevator

  	
   

  	
  Grain Probe

  	
   

  	
  Apollo

  
	
  Elevator

  	
   

  	
  Various Motors

  	
   

  	
   

  
	
  Elevator

  	
   

  	
  Grain Cleaner

  	
   

  	
  Garnet

  
	
  Elevator

  	
   

  	
  Misc Electrical
  Starters & Section

  	
   

  	
   

  
	
  Mill

  	
   

  	
  Hammermill 150
  hp

  	
   

  	
  Bliss

  
	
  Mill

  	
   

  	
  Hammertec elbows

  	
   

  	
   

  
	
  Mill

  	
   

  	
  MTMA Cleaner\asp
  (3)

  	
   

  	
  Buhler

  
	
  Mill

  	
   

  	
  Destoner MTSB100

  	
   

  	
  Buhler

  
	
  Mill

  	
   

  	
  Destoner MTSC 50

  	
   

  	
  Buhler

  
	
  Mill

  	
   

  	
  Destoner MTSC
  120/120

  	
   

  	
  Buhler

  
	
  Mill

  	
   

  	
  Aspirator

  	
   

  	
  Buhler

  
	
  Mill

  	
   

  	
  Hammermill 50 hp

  	
   

  	
  Bliss

  
	
  Mill

  	
   

  	
  flowbalancer (1)

  	
   

  	
  Buhler

  
	
  Mill

  	
   

  	
  Rollstand

  	
   

  	
  Sangati

  
	
  Mill

  	
   

  	
  Misc rolls
  chills

  	
   

  	
   

  
	
  Mill

  	
   

  	
  Misc rolls mill
  parts

  	
   

  	
  various

  
	
  Mill

  	
   

  	
  Misc stream
  splitter

  	
   

  	
  Kice

  
	
  Mill

  	
   

  	
  Entoleters

  	
   

  	
   

  
	
  Mill

  	
   

  	
  Misc blowers

  	
   

  	
  various

  
	
  Mill

  	
   

  	
  Misc Pulleys

  	
   

  	
   

  
	
  Mill

  	
   

  	
  Misc Magnets

  	
   

  	
  various

  
	
  Mill

  	
   

  	
  Misc pneu slide
  gates

  	
   

  	
  various

  
	
  Mill

  	
   

  	
  Misc Fans

  	
   

  	
  various

  
	
  Mill

  	
   

  	
  misc
  Airlock\hoppers

  	
   

  	
  various

  
	
  Mill

  	
   

  	
  Misc
  Spouting\valves\elbows

  	
   

  	
   

  
	
  Mill

  	
   

  	
  Flour bin
  dischargers

  	
   

  	
   

  
	
  Mill

  	
   

  	
  Pneumatic
  ab-mill (30) splitters

  	
   

  	
  Kice

  
	
  Mill

  	
   

  	
  Fans pneu b-mill
  (3)

  	
   

  	
  Kice

  
	
  mill

  	
   

  	
  Misc auto Valves

  	
   

  	
  Salina

  
	
  Mill

  	
   

  	
  Sifter 6 section
  (2)

  	
   

  	
  GW

  
	
  Mill

  	
   

  	
  Sifter 4 section
  (1)

  	
   

  	
  GW

  
	
  Mill

  	
   

  	
  Rebolt 211

  	
   

  	
  GW

  
	
  Mill

  	
   

  	
  Intensivesifter
  (6)

  	
   

  	
  Buhler

  
	
  Mill

  	
   

  	
  Rebolt 431

  	
   

  	
  GW

  
	
  Mill

  	
   

  	
  Duster (6)

  	
   

  	
  Buhler

  
	
  Mill

  	
   

  	
  Rebolt 322/14

  	
   

  	
  GW

  
	
  Mill

  	
   

  	
  Rebolt 321/8

  	
   

  	
  GW

  
	
  Mill

  	
   

  	
  Extraction
  sifter

  	
   

  	
  gw

  
	
  Mill

  	
   

  	
  Misc Lift shoes

  	
   

  	
  Kice

  

 

4

 

	
   

  	
   

  	
  MGP Mill
  Equipment Removal List

  	
   

  	
   

  
	
  Location

  	
   

  	
  Equipment

  	
   

  	
  Manufacture

  
	
  Mill

  	
   

  	
  Vac system

  	
   

  	
  Hoffman

  
	
  Mill

  	
   

  	
  RJ filter
  conversion

  	
   

  	
  Kice

  
	
  Mill

  	
   

  	
  blendvane
  feeders

  	
   

  	
  Salina

  
	
  Mill

  	
   

  	
  Multi aspirator

  	
   

  	
  Kice

  
	
  Mill

  	
   

  	
  Misc PLC
  Equipment

  	
   

  	
  AB

  
	
  Mill

  	
   

  	
  Misc Spare parts

  	
   

  	
  various

  
	
  Mill

  	
   

  	
  Misc Motors

  	
   

  	
  various

  
	
  Mill

  	
   

  	
  Air
  dryer & tank

  	
   

  	
   

  
	
  Mill

  	
   

  	
  Fork
  Lift & charger

  	
   

  	
   

  
	
  Mill

  	
   

  	
  Boiler electric
  Dewey shepard

  	
   

  	
   

  
	
  Mill

  	
   

  	
  Electrical
  Starters & Section

  	
   

  	
  Allen Bradley

  
	
  Mill

  	
   

  	
  Vacuum

  	
   

  	
  Kice

  
	
  Mill

  	
   

  	
  Freight elevator

  	
   

  	
   

  

 

5Exhibit 4.1.10

 

Wells Fargo Business Credit

Sixth & Marquette

Minneapolis, Minnesota 55479

612 673-8500

 

December 31, 2009

 

VIA U.S. MAIL &
FACSIMILE (913) 360-5661

 

MGP Ingredients, Inc.

100 Commercial Street

Atchison, KS 66002

Attention: Timothy W. Newkirk

 

	
  Re:

  	
   

  	
  Certain loans made by
  Wells Fargo Bank, National Association (“Lender”) to
  MGP Ingredients, Inc., a Kansas corporation (“Borrower”),
  pursuant to that certain Credit and Security Agreement dated July 21,
  2009, by and between Borrower and Lender (as amended from time to time, the “Credit  Agreement”).
  Terms not otherwise defined herein shall have the meanings given in the
  Credit Agreement

  

 

Dear Mr. Newkirk:

 

Pursuant to the terms of
that certain Subordination Agreement dated as of July 16, 2009, made by
the Cloud L. Cray, Jr. Trust, under an agreement dated October 25,
1983 (“Cray  Trust”),
for the benefit of Lender (the “Cray Subordination
Agreement”), the Borrower is prohibited from prepaying that certain
Subordinated Secured Promissory Note made by the Borrower dated March 27,
2009, payable to the order of the Cray Trust in the original principal amount
of $2,000,000 (the “Cray  Note”). 
Notwithstanding anything contained in the Cray Subordination Agreement
to the contrary, Lender hereby consents to the complete prepayment of Cray Note
by Borrower, provided that (i) the Cray Trust promptly releases and
terminates the filings, mortgages security interests set forth on Exhibit A
attached hereto and each other security interest in the assets of Borrower held
by the Cray Trust, (ii) no Default or Event of Default has occurred and is
continuing at the time of the pay-off and (iii) no Default or Event of
Default will occur after giving effect to the pay-off.  Effective upon the Cray Note pay-off,
Borrower and Lender agree that all references to indebtedness to or liens held
by the Cray Trust shall be deleted from Schedule 6.3 and Schedule 6.4
of the Credit Agreement.

 

Pursuant to the terms of
that certain Subordination Agreement dated as of July 21, 2009, made by
the Union Pacific Railroad Company (“UPRR”), for the
benefit of Lender (the “UPRR  Subordination  Agreement”),
the Borrower is prohibited from prepaying that certain Promissory Note made by
the Borrower dated May 4, 2009, payable to the order of UPRR in the
original principal amount of $997,545.50 (the “UPRR
Note”). 
Notwithstanding anything contained in the UPRR Subordination Agreement
to the contrary, Lender hereby consents the complete prepayment of UPRR Note by
Borrower, provided that (i) no Default or Event of Default has
occurred and is continuing at the time

 

 

of
the pay-off and (ii) no Default or Event of Default will occur after
giving effect to the pay-off.  Effective
upon the UPRR Note pay-off, Borrower and Lender agree that all references to indebtedness
to or liens held by UPPR shall be deleted from Schedule 6.4 of the
Credit Agreement.

 

The Credit Agreement, among
other things, prohibits the Borrower from making any contribution or investment
in any other Person or Affiliate. 
Borrower has requested that Lender consent to Borrower making a
contribution of up to $2,500,000 (the “ICP  Contribution”) to Illinois Corn Processing, LLC, a joint
venture partially owned by Borrower (“ICP”), for the
purpose of paying one-half of the restart and replacement cost of the boiler at
the Pekin Plant (the “Boiler  Restart”). 
Notwithstanding the provisions of the Credit Agreement and the other
Loan Documents, Lender hereby consents to Borrower making the ICP Contribution
subject to the following conditions, all of which shall be acceptable to Lender
in its sole and absolute discretion and shall survive the initial ICP
Contribution:

 

(i)            no Default or Event of Default has occurred and is
continuing at the time of the ICP Contribution;

 

(ii)           no Default or Event of Default will occur after
giving effect to the ICP Contribution being made;

 

(iii)          Illinois Corn Processing Holdings LLC, a Delaware
limited liability company, shall make a contribution equal to the ICP
Contribution to ICP for the Boiler Restart; and

 

(iv)          The ICP Contribution and the Holdings Contribution
shall be paid by ICP to the Central Illinois Light Company for the Boiler
Restart or otherwise used to pay for the Boiler Restart.

 

The Credit Agreement, among
other things, prohibits the Borrower from paying salaries or other compensation
which does not comply with the limitations contained in Section 6.8
of the Credit Agreement.  Notwithstanding
the provisions of the Credit Agreement and the other Loan Documents, Lender
hereby consents to Borrower paying salaries, bonuses, commissions, consultant
fees or other compensation in accordance with Exhibit B provided no
Borrower Default has occurred or would occur as a result of any such issuances
or payments.

 

In the event you should have
any questions or comments with respect to the matters set forth in this letter,
please do not hesitate to contact me.

 

2

 

In the event you should have
any questions or comments with respect to the matters set forth in this letter,
please do not hesitate to contact me.

 

	
   

  	
  WELLS FARGO BANK,

  
	
   

  	
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Becky A. Koehler

  
	
   

  	
   

  	
  Becky A. Koehler, its Vice
  President

  
	
   

  	
   

  
	
  ACKNOWLEDGED AND AGREED:

  	
   

  
	
   

  	
   

  
	
  MGP INGREDIENTS, INC.

  	
   

  
	
  a Kansas corporation

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Timothy W. Newkirk 

  	
   

  
	
  Name:

  	
  Timothy W. Newkirk

  	
   

  
	
  Its:

  	
  President and CEO

  	
   

  

 

3

 

EXHIBIT A

 

Cloud Cray Releases

 

	
  Jurisdiction

  	
   

  	
  UCC

  Number

  	
   

  	
  Filing

  Date

  	
   

  	
  Secured Party

  	
   

  	
  Collateral

  
	
  Kansas

  	
   

  	
  6613814

  	
   

  	
  7/10/09

  	
   

  	
  Cloud L. Cray, Jr. Trust

  	
   

  	
  All personal property except designated excluded
  assets

  
	
  Kansas

  	
   

  	
  6613822

  	
   

  	
  7/10/09

  	
   

  	
  Cloud L. Cray, Jr. Trust

  	
   

  	
  All personal property except designated excluded
  assets

  

 

MORTGAGE, ASSIGNMENT OF
LEASES, SECURITY AGREEMENT AND FIXTURE FILING FINANCING STATEMENT by MGP INGREDIENTS, INC., a Kansas corporation, whose address
is c/o Cray Business Plaza, 100 Commercial Street, Atchison, Kansas 66002 (the “Mortgagor”), to the CLOUD L. CRAY, JR. TRUST
under agreement dated October 25, 1983 related to certain property in
Atchison, Kansas (Recorded 3/30/09 in Atchison county, book 571, page 615-647).

 

4

 

EXHIBIT B

 

Incentive Program and
Guidelines

 

(Previously
filed as Exhibit 10.1 to Form 8-K filed on December 15, 2009)

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}]]