Document:

Exhibit 4.8.7

 

MORTGAGEE’S
CONSENT

 

To induce Wells Fargo Bank, National Association (“Wells Fargo”), to
extend credit and other financial accommodations to or for the benefit of MGP
Ingredients, Inc., a Kansas corporation (“Company”), secured by Company’s
accounts, chattel paper, commercial tort claims, deposit accounts, documents,
equipment, farm products, general intangibles, instruments, inventory,
investment property, letter-of-credit rights, letters of credit, money and any
other personal property (collectively, the “Collateral”), and for other good
and valuable consideration, Cloud L. Cray, Jr. Trust, under an agreement
dated October 25, 2983, (“Mortgagee”), hereby certifies and agrees for the
benefit of the Wells Fargo as follows:

 

1.             Premises; Mortgage.
Mortgagee holds a mortgage lien on certain premises (the “Premises”) located in
Atchison County, Kansas and described in Exhibit A attached hereto,
pursuant to a mortgage (the “Mortgage”), a true, correct and complete copy of
which is attached hereto as Exhibit B. The Mortgage is in full force and
effect and Company is not in default of any provision of the Mortgage.

 

2.             Subordination.
Mortgagee’s interest in the Collateral is subject to a Subordination Agreement
dated July 16, 2009 between Wells Fargo and Mortgagee.

 

3.             Notices to Wells
Fargo. Mortgagee shall promptly notify Wells Fargo as provided herein of
each of the following events:

 

(a)           any notice which Mortgagee may give to Company regarding
any breach of the Mortgage, or any termination of Company’s rights to use,
lease or possess the Premises;

 

(b)           any legal action which Mortgagee may commence to foreclose
Company’s interests in the Premises or to appoint a receiver for the Premises;

 

(c)           any agreement or proposal for Company to voluntarily convey
to Mortgagee title to all or any portion of the Premises; and

 

(d)           Mortgagee, or any receiver or agent on its behalf,
acquires possession of the Premises through foreclosure, voluntary conveyance
by Company, court order or otherwise.

 

All
notices to Wells Fargo shall be deemed given when received by Wells Fargo at:

 

1

 

Wells Fargo Bank, National Association 

MAC N9312-040

109 South 7th Street, 4th Floor 

Minneapolis, MN 55402 

Attention: Becky A. Koehler

 

4.             Wells Fargo’s
Right to Occupy Premises. Mortgagee hereby grants Wells Fargo the right to
take and remain in possession of the Premises for purposes of holding,
processing, manufacturing, selling, using, storing, liquidating, realizing upon
or otherwise disposing of the Collateral, and for related and incidental
purposes, for up to 105 days from and after the date on which Mortgagee, or any
receiver or agent on its behalf, acquires possession of the Premises through
foreclosure, voluntary conveyance, court order or otherwise. Mortgagee
acknowledges that Wells Fargo shall not be liable for any diminution in value
of the Premises during the period of time in which Wells Fargo has physical
possession of the Premises.

 

5.             Miscellaneous.
This Disclaimer and Consent shall be governed by and construed in accordance
with the substantive laws (other than conflict laws) of the State of Minnesota.
This Disclaimer and Consent may be executed in any number of counterparts, each
of which shall be an original, but all of which together shall constitute one
instrument. No failure on the part of Wells Fargo to exercise, and no delay in
exercising any right, power or remedy hereunder shall operate as a waiver of
such right, power or remedy; nor shall any single or partial exercise of any
right, power or remedy hereunder preclude any other or further exercise of such
right, power or remedy or the exercise of any other right, power or remedy.
This Disclaimer and Consent expresses completely, exclusively and finally all
the agreements, conditions and covenants of the parties and does not need
evidence (written or oral) of prior, contemporaneous or subsequent statements
or representations (express or implied) to reflect the intentions of the
parties. This Disclaimer and Consent may not be supplemented or modified except
in writing. This Disclaimer and Consent inures to the benefit of Wells Fargo
and its participants, successors, and assigns, and binds Mortgagee and its
respective successors and assigns. Mortgagee will notify any successor or
assign of the terms of this Disclaimer and Consent. This Disclaimer and Consent
does not imply a commitment to lend and shall be binding as long as any credit
facility remains outstanding, or any obligations of Company to Wells Fargo
remain outstanding or are subject to being set aside, recovered, rescinded or
required to be returned for any reason. THE
PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON
OR PERTAINING TO THIS DISCLAIMER AND CONSENT.

 

2

 

IN WITNESS WHEREOF, the undersigned has caused this document to be
executed by its respective officer thereunto duly authorized, as of the date
first above written.

 

	
   

  	
  CLOUD
  L. CRAY, JR. TRUST

  
	
   

  	
  Under
  an agreement dated October 25,1983

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Cloud L. Cray, Jr., Ttee

  
	
   

  	
   

  	
  Name:
  Cloud L. Cray, Jr.

  
	
   

  	
   

  	
  Title:
  Trustee

  

 

	
  This
  instrument was drafted by:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  STATE
  OF KANSAS

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  COUNTY
  OF ATCHISON

  	
  )

  	
   

  

 

The foregoing instrument was acknowledged before me this 15th day of July, 2009, by Cloud L. Cray, Jr.,
the trustee of Cloud L. Cray, Jr. Trust, a
               ,
on behalf of said
                           
..

 

	
  

  	
  NOTARY
  PUBLIC - State of Kansas

  	
  /s/
  Marta L. Myers

  
	
  MARTA L.
  MYERS

  	
   

  
	
  My Appt.
  Exp. 01/03/2010

  	
  Notary Public

  

 

(Signature page to Mortgagee’s
Disclaimer and Consent)

 

 

EXHIBIT
A

TO

MORTGAGEE’S
DISCLAIMER AND CONSENT

 

The Premises referred to in the referenced instrument are located in Atchison
County, Kansas, and are described as follows:

 

A-1

 

EXHIBIT B

TO

MORTGAGEE’S DISCLAIMER
AND CONSENT

 

[COPY
OF MORTGAGE]

 

[Reference is made to
Exhibit 4.8.2 in 10-K for fiscal year ended 6/30/09]

 

B-1Exhibit 4.9.21

 

July 17, 2009

 

MGP
Ingredients, Inc.

Midwest
Grain Pipeline, Inc.

100
Commercial Street

Atchison,
Kansas 66002

 

Re:          Stepdown Extensions

 

Ladies
and Gentlemen:

 

Please
refer to the Credit Agreement dated as of May 5, 2008, among MGP Ingredients, Inc.,
Midwest Grain Pipeline, Inc., Commerce Bank, N.A., as Agent, Issuing Bank
and Swingline Lender, and the Banks party thereto, as amended by (1) a
First Amendment to Credit Agreement dated as of September 3, 2008, (2) a
Second Amendment to Credit Agreement dated as of November 7, 2008, (3) a
Third Amendment to Credit Agreement dated as of December 19, 2008, (4) a
Fourth Amendment to Credit Agreement dated as of February 27, 2009, and a
letter agreement dated as of March 11, 2009, (5) a Fifth Amendment to
Credit Agreement dated as of March 13, 2009, (6) a Sixth Amendment to
Credit Agreement dated as of March 26, 2009 and (7) a Seventh
Amendment to Credit Agreement dated as of June 15, 2009 (as so amended,
the “Credit Agreement”). 
Capitalized terms used and not defined in this letter have the meanings
given to them in the Credit Agreement.

 

By
executing and delivering this letter, the parties to the Credit Agreement agree
that:

 

1.             The definition of Letter of
Credit Commitment in Section 1.1 of the Credit Agreement is amended
by (a) changing the reference to “July16, 2009” in subclause (2) thereof
to “July 23, 2009” and (b) changing the reference to “July 17,
2009” in subclause (3) thereof to “July 24, 2009”.

 

2.             The definition of Revolving
Credit Commitment in Section 1.1 of the Credit Agreement is amended
by (a) changing the reference to “July17, 2009” in subclause (2) thereof
to “July 23, 2009” and (b) changing the reference to “July 16,
2009” in subclause (3) thereof to “July 24, 2009”.

 

3.             The definition of Swingline
Loan Commitment in Section 1.1 of the Credit Agreement is amended
by (a) changing the reference to “July16, 2009” in subclause (2) thereof
to “July 23, 2009” and (b) changing the reference to “July 16,
2009” in subclause (3) thereof to “July 24, 2009”.

 

4.             On the date of this letter,
the Borrowers shall jointly and severally pay to the Agent, for distribution to
the Banks in accordance with their respective Pro-Rata Shares, the sum of
$10,000, which amount shall be deemed fully-earned and non-refundable on the
date of this letter, and which amount shall be in addition to any other amounts
the Borrowers have promised to pay pursuant to any of the Credit Documents.

 

 

5.             Except as amended hereby,
the Credit Agreement and the other Credit Documents shall remain in full force
and effect and be binding on the parties thereto in accordance with their
respective terms.

 

6.             Nothing in this letter
constitutes a waiver of any Default or Event of Default that may exist on the
date hereof, and nothing in this letter obligates the Agent or the Banks to
enter into any alternative arrangements for the satisfaction of the Borrowers’
outstanding obligations.  Furthermore,
nothing in the letter shall obligate the Agent or the Banks to enter into
further or future arrangements in the event of other defaults by the Borrowers
under their obligations and covenants contained in the Credit Documents or any
future agreement or arrangement with the Agent and the Banks.

 

7.             This letter shall not be
effective until each party has signed this letter and delivered it to the
Agent.  This letter may be validly
executed and delivered by fax, e-mail or other electronic means, and by use of
multiple counterpart signature pages. 
This letter shall be governed by the same law that governs the Credit
Agreement.

 

If you
are in agreement with the provisions of this letter, please sign this letter in
the space provided and return this letter or your signature page to the
Agent.

 

	
   

  	
  Regards

  
	
   

  	
   

  
	
   

  	
  COMMERCE
  BANK, N.A., as Agent, Issuing Bank, Swingline Lender and a Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Craig D. Buckley

  
	
   

  	
   

  	
  Name:
  Craig D. Buckley

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  
	
  AGREED
  TO:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  MGP
  INGREDIENTS, INC.

  	
  BMO
  CAPITAL MARKETS FINANCING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Timothy W. Newkirk

  	
   

  	
  By:

  	
  /s/
  Barry Stratton

  
	
   

  	
  Name:
  Timothy W. Newkirk

  	
  Name:
  Barry Stratton

  
	
   

  	
  Title:
  President & CEO

  	
  Title:  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
  MIDWEST
  GRAIN PIPELINE, INC.

  	
  NATIONAL
  CITY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Timothy W. Newkirk

  	
   

  	
  By:

  	
  /s/
  Michael Leong

  
	
   

  	
  Name:
  Timothy W. Newkirk

  	
  Name:  Michael Leong

  
	
   

  	
  Title:
  President & CEO

  	
  Title:
  Vice President

  
						

 

2

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