Document:

Exhibit
10.4

MGP INGREDIENTS, INC.

SEPARATION AGREEMENT AND RELEASE OF CLAIMS

WHEREAS, the undersigned
employee has been involuntarily terminated as a result of a restructuring;

WHEREAS, MGP Ingredients is
making available to the undersigned employee a separation benefit conditioned
upon a release of all claims by the undersigned employee; and

WHEREAS, the undersigned
employee is not entitled otherwise to any separation benefit and wishes to
accept the separation benefit described below.

The undersigned employee agrees as follows:

1.             In exchange for the separation benefit described below, Michael Trautschold (“Employee”) releases and forever
discharges MGP Ingredients, Inc., its predecessors, successors, assigns,
officers, directors, stockholders, agents, employees, and all related or
subsidiary companies or divisions (collectively referred to as “Employer”) from
all claims, demands, suits, grievances, liabilities, or causes of action of any
kind whatsoever now existing including but not limited to those that in any way
relate to or are connected with or arise directly or indirectly out of the
employment of Employee by Employer or the termination of that employment.

2.             The claims released and discharged by Employee as of the
date of this Agreement include, but are not limited to, claims that might be
asserted under any federal, state or local law, regulation, ordinance, or
decision concerning employment, discrimination in employment, or termination of
employment including but not limited to:

A.                                   The
Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C.  sec. 621, et seq.;

B.                                     The
Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. sec.
1001, et seq.;

C.                                     The
Kansas Acts Against Discrimination, as amended, Kan. State. Ann.  sec. 44-1001, et seq.;

D.                                    Title
VII of Civil Rights Act of 1964 as amended, 42 U.S.C. sec 2000e, et seq.;

E.                                      Americans
With Disabilities Act, 42 U.S.C. sec. 12101, et seq.:

F.                                      The
Civil Rights Act of 1866, as amended, 42 U.S.C. sec. 1981;

G.                                     The
Civil Rights Act of 1991, 42 U.S.C. sec. 1981a; and

H.                                    Family
and Medical Leave Act.

The claims released and discharged by Employee also include, but are
not limited to, any claim that Employer breached any contract, express or
implied, with Employee, made any misrepresentations to Employee, discharged
Employee in violation of public policy, or acted wrongfully in any way toward
Employee.  The claims released and
discharged by Employee also include, but are not limited to, any claim relating
in any manner to personal injuries, fringe benefits, medical, dental,
hospitalization, life, disability, or other insurance benefits, pension or
other retirement benefits, and any claims for attorney’s fees, reinstatement or
rehire.

Employee further agrees not to initiate any legal proceeding against
Employer based on any fact or circumstance occurring up to and including the
date of the execution by Employee of this Agreement.

Employee’s last date of employment will be December 31, 2006.  By this Agreement, Employee waives any claim
for reinstatement and agrees not to seek re-employment

 2
 

with Employer at any time in the future.  Employee agrees that any attempt to obtain
re-employment following his signing this Agreement will constitute a breach of
this Agreement, and that Employer may rely upon such breach in refusing
employment, or in discharging Employee from employment.

3.             The separation benefit shall be paid after the
revocation period for this Agreement has expired and shall be as follows:

a.                                       Employee
shall receive gross compensation of Forty-two Hundred Dollars and Eleven Cents
($4,200.11) per week from January 1, 2007 until December 23, 2007.  Compensation checks will be paid at net pay
after normal deductions and last weekly check will be paid on December 27, 2007.  The above amounts are inclusive of accrued
vacation that was not paid prior to December 31, 2006.  If Employee does not accept this Agreement,
any unpaid accrued vacation will be paid to Employee.

b.                                      Health
Care.  If otherwise eligible, Employee
may elect continuing healthcare coverage pursuant to COBRA.  If Employee remains eligible for COBRA, Employer
will pay 85% of the family premium through 
December 23, 2007.  If Employee
elects other healthcare coverage, Employer will reimburse Employee for the cost
of such coverage through December 23, 2007 but not to exceed the amount
Employer would have paid had Employee elected healthcare coverage pursuant to
COBRA.

c.                                       Retirement.  Employee is vested in the ESOP and 401k Plans
per the respective plan documents and may take withdrawals per the respective
plan documents.

d.                                      Options.  Employee will be permitted to exercise
options to the extent permitted under applicable option plans and related
awards.

e.                                       Restricted
Stock Incentive Plan.  If the Company
attains the applicable performance goals, the Employee will be permitted to
receive restricted shares on a pro rata basis as described in Attachments 1 and
2.  Subject to the Company attaining
performance goals, he will be entitled to receive 30/36 of the award whose
performance period ends in 2007 and 18/36 of the award whose performance period
ends in 2008.  If the Company does not
attain performance goals, then notwithstanding the provisions of Attachments 1
and 2, he will be entitled to receive 30/84 of the award whose performance period
ends in 2007 during 2007 and 18/84 of the award whose performance period ends
in 2008 during 2008.

 3
 

f.                                         Outplacement.  Employer will provide, at its expense of
$15,000.00, an outplacement program through CSG Partners, Inc. / Lee Hecht
Harrison in the Kansas City area.  If
Employee elects before the expiration of 15 days after the effective time of
this Release to waive the outplacement benefit, Employer will promptly pay
Employee $15,000.

g.                                      Consulting.  Employer and Employee will enter into a
consulting arrangement on future projects in the form attached as Attachment 3
with prior written approval from the President of MGP concerning the scope of
each project.  A minimum of 400 hours
will be guaranteed for calendar year 2007 at a rate of $250 per hour.  Fees will be based on 1⁄4 hour increments with
explanations required for invoicing as provided in the consulting
agreement  The Confidentiality
Obligations referred to in paragraph 5 below and in the consulting agreement
will apply to any Confidential Information (as therein defined) or trade
secrets made known to Employee during the period that he is consulting for
Employer.

h.                                      Long
Term Care Policy.  Employee may continue
his long term care policy by paying the premium.  Invoice will be sent direct to Employee from
the carrier.

i.                                          Withholding.  All payments hereunder will be subject to
applicable withholding.

4.             Employee is not releasing Employer from any obligation
concerning any claim for unemployment compensation Employee may make.  Employer agrees not to protest any
unemployment compensation claim if Employee’s factual information provided to support
the claim is truthful.

5.             Employee acknowledges that he continues to be bound by
confidentiality obligations as imposed by law or as referenced in the Acknowledgement
of and Agreement with Respect to Ongoing Confidentiality Obligations, attached
as Attachment 4.

6.             Employee further agrees to assist in a smooth
transition, to not be disruptive, and to cooperate with Employer concerning
this change in employment status.

7.             Employee will return on or before December 31, 2006, the
laptop computer and mobile phone and other Company property, if any, in his
possession.

 4
 

8.             Employee understands and agrees that the provisions of
this Release and the requirement that the Release be signed in order for
Employee to receive the separation benefit do not constitute an admission of
any liability to Employee and that Employer expressly denies any such
liability.

9.             Employee does not waive any rights or claims that may
arise after the date this Release is signed.

10.           Employee agrees that prior to
December 31, 2007 he will not, without the prior written consent of the
Company, (a) except on behalf of the Employer in his capacity as consultant for
the Employer, represent, approach, solicit, hire or otherwise deal with,
directly or indirectly, any person associated with a customer of the Company
with whom he had contact during the period of his employment with Employer
regarding the wheat protein, starch or resin ingredients business (“Business”)
or (b) employ or retain or solicit for employment or retention by any other
person, any employee of the Employer. Employee hereby acknowledges that the
remedies at law of the Employer for any breach of employee’s obligations
contained in this Section would be inadequate and the Employer shall be
entitled to injunctive relief or any other equitable relief for any violation
hereof and Employee, in any equitable proceeding, agrees not to claim that a
remedy at law is available to the Employer.

11.           Employer hereby advises Employee in
writing to consult with an attorney prior to executing this Release, and
Employee has been given a period of at least 21 days within which to consider
this Release, but Employee may accept or reject its terms, if he chooses, at
any time prior to the expiration of the 21 day period (12/11/06).  For a period of seven days following the
signing of this Release, Employee may revoke the Release

 5
 

and the Release shall not become effective or
enforceable until the revocation period has expired.

12.           Employee certifies that all
transactions reportable under Section 16 of the Securities Exchange Act of
1934, as amended, by him in Employer’s stock prior to the date hereof have been
reported.

13.           Employee acknowledges and agrees that
no promise or agreement not expressed in this Release has been made; that this
Release is not executed in reliance upon any statement or representation made
by Employer or by any person employed by or representing Employer other than
the statements contained in the Release itself; that the consideration recited
above is the sole and only consideration for this Release; and that the terms
of this Release are contractual and not mere recitals.

	
  Date: 11/21/06

  	
   

  
	
   

  	
  /s/Michael
  Trautschold

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ David E.
  Rindom

  	
   

  
	
   

  	
  Witness

  
	
   

  	
   

  
	
  Date: 11/21/06

  	
  /s/David E. Rindom

  	
   

  
	
   

  	
  Authorized
  Officer

  
	
   

  	
  MGP Ingredients,
  Inc.

  

 

 6

Attachment
1

MGP INGREDIENTS, INC.

AGREEMENT AS TO AWARD OF RESTRICTED SHARES

GRANTED UNDER THE STOCK INCENTIVE PLAN OF 2004

	
  Date of Grant: December 1, 2004

  	
   

  	
   

  
	
  Time of Grant: 10:15 a.m. CST

  	
   

  	
  7,400 Restricted Shares

  
	
   

  	
   

  	
   

  

In accordance with and subject to the terms and
restrictions set forth in the MGP Ingredients, Inc. Stock Incentive Plan of
2004 (the “2004 Plan”) and this Agreement, MGP INGREDIENTS, INC., a Kansas
corporation (the “Company”), hereby grants to the Participant named below the
number of Restricted Shares of Common Stock of the Company as set forth below:

Participant: Micahel
J. Trautschold

Number of Restricted Shares under the 2004 Plan: 7,400

NOW, THEREFORE, the Company and the Participant hereby
agree to the following terms and conditions:

1.                                       Issuance
of Restricted Shares.  The shares
described above are being issued by the Company to the Participant as
Restricted Shares pursuant to the terms and provisions of the 2004 Plan and of
the Guidelines for Issuance of Fiscal 2005 Restricted Share Awards (the “Guidelines”)
adopted by the Human Resources Committee of the Board of Directors of the
Company, true copies of which are attached hereto as Exhibits A and B and
incorporated herein by reference.  Upon
the execution of this Agreement,  the
Company shall issue in the Participant’s name the aggregate number of
Restricted Shares described above, 
subject to the provisions of the Guidelines requiring that such
certificate or certificates be held in the custody of the Company.

2.                                       Vesting
in Restricted Shares.  Subject to the
provisions of the Guidelines, Restricted Shares shall vest in the Participant
upon the Participant’s completion of seven (7) full years of employment with
the Company commencing on July 1, 2004. 
However, in the event that the Performance Measure is achieved, the
Restricted Shares shall vest in the Participant upon completion of three (3)
full years of employment commencing on July 1, 2004.  The Performance Measure means that the
Company has achieved earnings per share on a cumulative basis for the period
beginning on July 1, 2004 and ending on June 30, 2007 of $3.15 per share.  The Performance Measure is subject to
adjustment, as provided in the Guidelines, 
and the inclusion or exclusion of unusual or non-recurring items is
subject to the discretion of the Compensation Committee, as provided in the
Guidelines.  Except as provided in the
Guidelines, the Restricted Shares issued to the Participant shall be forfeited
to the Company if the Participant’s employment with the Company is terminated
prior to the end of the applicable Restriction Period.

 

3.                                       Restriction
on Transfer. The Participant shall not voluntarily sell, exchange,
transfer, pledge, hypothecate, or otherwise dispose of any Restricted Shares to
any other person or entity during the applicable Restriction Period.  Any disposition or purported disposition made
in violation of this paragraph shall be null and void, and the Company shall
not recognize or give effect to such disposition on its books and records.

4.                                       Legend
on Certificates.  In order that all
potential transferees and others shall be put on notice of this Agreement and
so long as the risk of forfeiture exists under the Plan and Guidelines, each
certificate evidencing ownership of the Restricted Shares issued pursuant to
the Plan (and any replacements thereto) shall bear a legend in substantially
the following form:

“The shares evidenced by
this Certificate have been issued pursuant to the MGP Ingredients, Inc. Stock
Incentive Plan of 2004 and a related agreement (the “Agreement”) between the
Company and the registered holder.  The
holder’s rights are subject to the restrictions, terms and conditions of the
Plan and to the Agreement, which restricts the transfer of the shares and
subjects them to forfeiture to the Company under the circumstances referred to
in the Agreement.  This legend may be
removed when the holder’s rights to the shares vest under the Agreement.”

5.             Controlling
Provisions.  The provisions of the
Guidelines shall apply to the award made under this Agreement.  In the event of a conflict between the
provisions of this Agreement and the Guidelines, the provisions of the
Guidelines will control.

IN WITNESS WHEREOF, this Instrument has been executed
as of this 3rd day of December, 2004.

	
  

  	
  MGP INGREDIENTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Laidacker M. Seaberg

  
	
   

  	
   

  	
  Laidacker M. Seaberg

  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  

 

ACKNOWLEDGEMENT

I understand and agree that the Restricted Shares to
be acquired by me are subject to the terms, provisions and conditions hereof
and of the Plan and Guidelines, to all of which I hereby expressly assent.  This Agreement shall be binding upon and
inure to the benefit of the Company, myself, and our respective successors and
legal representatives.

 2
 

 

This Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof, and may not be
modified, amended, renewed or terminated, nor may any term, condition or breach
of any term or condition be waived, except in writing signed by the parties
sought to be bound thereby.  Any waiver
of any term, condition or breach shall not be a waiver of any term or condition
of the same term or condition for the future or any subsequent breach.  In the event of the invalidity of any part or
provision of this Agreement, such invalidity shall not effect the
enforceability of any other part or provision of this Agreement.

Signed this 12th 
day of January, 2005.

	
  

  	
   

  	
  /s/ Michael J. Trautschold

  
	
   

  	
   

  	
  Signature of Participant

  

 

 3

Attachment 2

MGP INGREDIENTS, INC.

AGREEMENT AS TO AWARD OF RESTRICTED SHARES

GRANTED UNDER THE STOCK INCENTIVE PLAN OF 2004

	
   

  	
   

  	
   

  
	
  Date of Grant: August
  30, 2005

  	
   

  	
   

  
	
  Time of Grant: 10:15 a.m. CST

  	
   

  	
  14,600 Restricted Shares

  
	
   

  	
   

  	
   

  

In accordance with and subject to the terms and
restrictions set forth in the MGP Ingredients, Inc. Stock Incentive Plan of
2004 (the “2004 Plan”) and this Agreement, MGP INGREDIENTS, INC., a Kansas
corporation (the “Company”), hereby grants to the Participant named below the
number of Restricted Shares of Common Stock of the Company as set forth below:

Participant: Micahel
J. Trautschold

Number of Restricted Shares under the 2004 Plan: 14,600

NOW, THEREFORE, the Company and the Participant hereby
agree to the following terms and conditions:

1.                                       Issuance
of Restricted Shares.  The shares
described above are being issued by the Company to the Participant as
Restricted Shares pursuant to the terms and provisions of the 2004 Plan and of
the Guidelines for Issuance of Fiscal 2006 Restricted Share Awards (the “Guidelines”)
adopted by the Human Resources Committee of the Board of Directors of the
Company, true copies of which are attached hereto as Exhibits A and B and
incorporated herein by reference.  Upon
the execution of this Agreement,  the
Company shall issue in the Participant’s name the aggregate number of
Restricted Shares described above, 
subject to the provisions of the Guidelines requiring that such
certificate or certificates be held in the custody of the Company.

2.                                       Vesting
in Restricted Shares.  Subject to the
provisions of the Guidelines, Restricted Shares shall vest in the Participant
upon the Participant’s completion of seven (7) full years of employment with
the Company commencing on July 1, 2005. 
However, in the event that the Performance Measure is achieved, the
Restricted Shares shall vest in the Participant upon completion of three (3)
full years of employment commencing on July 1, 2005.  The Performance Measure means that the
Company has achieved earnings per share on a cumulative basis for the period
beginning on July 1, 2005 and ending on June 30, 2008 of $1.73 per share.  The Performance Measure is subject to
adjustment, as provided in the Guidelines, 
and the inclusion or exclusion of unusual or non-recurring items is
subject to the discretion of the Compensation Committee, as provided in the
Guidelines.  Except as provided in the
Guidelines, the Restricted Shares issued to the Participant shall be forfeited to
the Company if the Participant’s employment with the Company is terminated
prior to the end of the applicable Restriction Period.

 

3.                                       Restriction
on Transfer. The Participant shall not voluntarily sell, exchange,
transfer, pledge, hypothecate, or otherwise dispose of any Restricted Shares to
any other person or entity during the applicable Restriction Period.  Any disposition or purported disposition made
in violation of this paragraph shall be null and void, and the Company shall
not recognize or give effect to such disposition on its books and records.

4.                                       Legend
on Certificates.  In order that all
potential transferees and others shall be put on notice of this Agreement and
so long as the risk of forfeiture exists under the Plan and Guidelines, each
certificate evidencing ownership of the Restricted Shares issued pursuant to
the Plan (and any replacements thereto) shall bear a legend in substantially
the following form:

“The shares evidenced by
this Certificate have been issued pursuant to the MGP Ingredients, Inc. Stock
Incentive Plan of 2004 and a related agreement (the “Agreement”) between the
Company and the registered holder.  The
holder’s rights are subject to the restrictions, terms and conditions of the
Plan and to the Agreement, which restricts the transfer of the shares and
subjects them to forfeiture to the Company under the circumstances referred to
in the Agreement.  This legend may be
removed when the holder’s rights to the shares vest under the Agreement.”

5.             Controlling
Provisions.  The provisions of the
Guidelines shall apply to the award made under this Agreement.  In the event of a conflict between the
provisions of this Agreement and the Guidelines, the provisions of the
Guidelines will control.

IN WITNESS WHEREOF, this Instrument has been executed
as of this 20th day of September, 2005.

	
  

  	
  MGP INGREDIENTS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Laidacker M. Seaberg

  
	
   

  	
   

  	
  Laidacker M. Seaberg

  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  

 

ACKNOWLEDGEMENT

I understand and agree that the Restricted Shares to
be acquired by me are subject to the terms, provisions and conditions hereof
and of the Plan and Guidelines, to all of which I hereby expressly assent.  This Agreement shall be binding upon and
inure to the benefit of the Company, myself, and our respective successors and legal
representatives.

 2
 

 

This Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof, and may not be
modified, amended, renewed or terminated, nor may any term, condition or breach
of any term or condition be waived, except in writing signed by the parties
sought to be bound thereby.  Any waiver
of any term, condition or breach shall not be a waiver of any term or condition
of the same term or condition for the future or any subsequent breach.  In the event of the invalidity of any part or
provision of this Agreement, such invalidity shall not effect the
enforceability of any other part or provision of this Agreement.

Signed this 20th day of September, 2005.

	
  

  	
   

  	
  /s/ Michael J. Trautschold

  
	
   

  	
   

  	
  Signature of Participant

  

 

 3Exhibit
10.5

CONSULTATION AGREEMENT

THIS AGREEMENT made as of the
1st day of January, 2007 between MGP INGREDIENTS, INC.,
a Kansas corporation (“Company”) and MICHAEL TRAUTSCHOLD
(“Trautschold”), a resident of Johnson County, Kansas.

WHEREAS, Company wishes to engage Trautschold to
provide consulting services for it in connection with the operations of its
business; and

NOW, THEREFORE, for and in consideration of the mutual
covenants herein made, Trautschold and the Company agree as follows:

1.                                       Consultation Agreement.

(a)                                  In
consideration for the Company’s agreement to pay him $250 an hour, upon and
subject to the terms of this Agreement, Trautschold agrees that for a period
commencing on the effective date hereof and ending on the earlier of December
31, 2007 or the date of his death, he will provide the Company’s President such
assistance, advice and consultation in connection with the Company’s
ingredients business as the Company’s President may request from time to time
after reasonable notice to Trautschold. 
In such capacity, Trautschold will use his best efforts, within the
bounds of law and ethics, to preserve the good will of the Company with its
customers, its employees, the ingredients industry and the general public.  Trautschold’s work under this Agreement may
include assisting in litigation involving the Company.  Nothing in this Agreement shall in anyway
compel Trautschold to respond to questions except with an honest truthful
answer.

(b)                                 It
is understood that if the Company has not utilized Trautschold’s services for
at least 400 hours before December 31, 2007, it will on January 15, 2008 pay
him an amount equal to the difference between $100,000 and the amount
previously paid for his consulting services under this Agreement. It is also
understood that if the Company requests in writing, Trautschold will continue
to provide consulting services until December 31, 2012 at the hourly rate set
forth above. However, any such election will not require the Company to
actually utilize Trautschold’s services or to utilize them for any minimum
amount of time after December 31, 2007.  Fees
will be based on 1/4 hour increments.  Fees
will be paid monthly commencing on February 15, 2007 for services rendered
during the prior month as evidenced by a monthly invoice submitted by
Trautschold.  Such invoice will indicate
the time spent and identify the matter worked on and any expenses
incurred.  If requested by the Company,
Trautschold will supply additional supporting data.

(c)                                  It
is also understood that Trautschold’s services under this Agreement will be
rendered primarily in the Kansas City, Missouri/Kansas City, Kansas
metropolitan area but that upon request Trautschold will travel to such other
places outside of the Kansas City, Missouri/Kansas City, Kansas metropolitan
area as the Company may reasonably request. 
All reasonable expenses incurred by Trautschold in connection with any
such travel will be reimbursed by the Company within fifteen (15) days after receipt
of the monthly invoice submitted by Trautschold.

(d)                                 It is anticipated that
this Agreement may require on the average thirty to thirty-five (30-35) hours
of work monthly, although there will be some months during which Trautschold
may not perform any services at all, and, on the other hand, some months in
which he will be required to work in excess of thirty to thirty-five
hours.  The hours during which
Trautschold performs services hereunder on any given day shall be determined by
him, although Trautschold will use reasonable efforts to respond timely to and
to accommodate the requests of the Company’s President for his services.

(e)                                  As a consultant,
Trautschold will be an independent contractor and will not be considered an
employee of the Company for any purpose.

(f)                                    Trautschold may
perform services for any other person or firm without the Company’s prior
consent provided that in doing so he does not violate this Agreement or any
other agreement with the Company.  In
this regard, Section 10 of the Separation Agreement and Release of Claims
between Trautschold and the Company requires the Company’s prior written
consent to certain contacts by Trautschold.

2.                                       Protection of Confidential Information.

(a)                                  As used in this
paragraph 2 the term “Confidential Information” means attorney client or other
confidential communications or information protected by the work product
doctrine and any of the following, whether historical, current or proposed and
whether the Company’s or a customer’s: customer lists, customer credit
information, marketing data,  production
methods and formulas, recipes, processes, innovations, inventions, strategies,
suppliers, pricing and pricing methods, sales techniques, advertising,
traveling and canvassing methods, brochures or instructions relating to products,
services or business of the Company or any customer of the Company, and any
other information which the Company may from time to time identify in writing to
Trautschold as information which it wishes to preserve as secret.  Such other Confidential Information and the
dates on which the Company so advised Trautschold may, but need not be,
recorded as an exhibit to be attached to and deemed a part of this Agreement.

(b)                                 By executing this
Agreement, Trautschold acknowledges that he has been advised that the Company
wishes to preserve Confidential Information as secret.

(c)                                  Unless Trautschold
shall first secure the written consent of the Company, Trautschold shall not
disclose or use at any time, either during or subsequent to the term of this
Agreement, any Confidential Information, whether or not patentable, of which
Trautschold is presently aware or becomes informed during such time, whether or
not developed by Trautschold, except as required in the exercise of Trautschold’s
duties to the Company under this Agreement. 
This obligation shall not apply to any Confidential Information which is
or shall become a part of the public domain through no fault of
Trautschold.  Trautschold shall not be
deemed in breach of this provision for good faith actions undertaken in the
performance of duties requested of him by the Company under this Agreement.

(d)                                 Upon the Company’s
request, Trautschold shall promptly deliver to the Company all manuals, sales
materials, letters, notes, notebooks, reports, customer lists, and all

 2
 

copies thereof, and all other materials of a secret or confidential
nature related to the business of the Company or any customers of the Company,
which are in the possession or under the control of Trautschold.

(e)                                  Trautschold
acknowledges that his breach of the covenants contained in this paragraph 2
will cause irreparable damage to the Company, and accordingly, Trautschold
agrees that in addition to other remedies which it may have hereunder, the
Company may seek equitable relief to enforce the obligations imposed hereunder.

(f)                                    This paragraph 2 is
intended to supplement, but not limit or supplant, any obligation of
Trautschold or remedy of the Company which may be otherwise imposed on
Trautschold or available to the Company under common law or equity without
written agreement.

3.                                        Other Considerations.

The payment on January 15, 2008 referred to in
subparagraph 1 (b) will be made notwithstanding Trautschold’s death or
disability.  In the event of Trautschold’s
death, such payment will be made to such 
person or persons as he may designate in writing and in the absence of
such designation to his estate. Notwithstanding the foregoing, the Company
shall have no obligation to pay such amounts if Trautschold violates the terms
of this Agreement or contests the validity of the Separation Agreement and
Release of Claims with the Company or its application to any act or omission of
the Company prior to the effective time thereof.

4.                                       Notices.  Any notice
required or permitted to be given hereunder shall be sufficient if in writing
and shall be deemed delivered upon the date of mailing if mailed by certified
or registered mail, return receipt requested, to the address of Trautschold as
reflected in the Company’s records, or to the Company to 1300 Main Street, P.O.
Box 130, Atchison, Kansas 66002-0130, Attn: 
President.

5.                                       Miscellaneous.  This
Agreement constitutes the entire Agreement of the parties hereto respecting the
subject matter hereof and supersedes all prior understandings or agreements,
oral or written, among all or any of such parties.  This Agreement shall not be amended except by
a written agreement signed by all of the parties hereto.  This Agreement shall be binding upon, inure
to the benefit of and be enforceable by the parties hereto and their respective
heirs, personal representatives, successors and permitted assigns.  This Agreement shall be governed by the laws
of the State of Kansas.  In the event any
one or more of the provisions contained in this Agreement or any application
thereof shall be held to be illegal, the enforceability of the remaining
provisions of this Agreement or any other application thereof shall not in any
way be affected or impaired thereby.  No
delay or failure on the part of any party hereto in exercising any rights
hereunder, and no partial or single exercise thereof, shall constitute a waiver
of any other rights hereunder.  Whenever
the context hereof shall require, the use of any gender shall include all
genders and the singular shall include the plural, and vice versa.  All exhibits attached hereto are incorporated
herein by this reference.

 3
 

 

	
  

  	
  “COMPANY”

  
	
   

  	
   

  
	
   

  	
  (CORPORATE SEAL)

  	
   

  
	
   

  	
   

  
	
   

  	
  MGP INGREDIENTS, INC.

  
	
   

  	
   

  
	
  ATTEST:

  	
  By:

  	
  /s/ Laidacker M.Seaberg

  	
   

  
	
   

  	
   

  
	
   

  	
  Laidacker M. Seaberg

  
	
  Marta M. Myers

  	
  Chief Executive Officer

  
	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “CONSULTANT”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Michael J. Trautschold

  	
   

  
	
   

  	
  Michael Trautschold

  

 

 4

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