Document:

Exhibit 4.6.1

 

	
  DEBTOR NAME AND ADDRESS

   

  MGP
  INGREDIENTS, INC. 

  PO
  Box 130 

  Atchison,
  KS 66002 

   

  Type:
  o individual o partnership x corporation o  

  State
  of organization/registration (if applicable) Kansas  

  o   If
  checked, refer to addendum for additional Debtors and signatures.

  	
   

  	
  SECURED PARTY NAME AND ADDRESS

   

  Union
  State Bank of Everest DBA Bank of Atchison USB

  701
  Kansas Avenue

  Atchison,
  KS 66002

  

 

COMMERCIAL SECURITY AGREEMENT

 

The date of this Commercial
Security Agreement (Agreement) is July 20, 2009

SECURED DEBTS.  This
Agreement will secure all sums advanced by Secured Party under the terms of
this Agreement and the payment and performance of the following described
Secured Debts that (check one) x Debtor o

(Borrower)
owes to Secured Party:

o            Specific Debts.  The following debts and all extensions,
renewals, refinancings, modifications, and replacements (describe):

 

x          All Debts.  All present and future debts, even if this
Agreement is not referenced, the debts are also secured by other collateral, or
the future debt is unrelated to or of a different type than the current
debt.  Nothing in this Agreement is a
commitment to make future loans or advances.

 

SECURITY INTEREST.  To secure the payment and performance of the
Secured Debts, Debtor gives Secured Party a security interest in all of the
Property described in this Agreement that Debtor owns or has sufficient rights
in which to transfer an interest, now or in the future, wherever the Property
is or will be located, and all proceeds and products of the Property.  “Property” includes all parts, accessories,
repairs, replacements, improvements, and accessions to the Property; any
original evidence of title or ownership; and all obligations that support the
payment or performance of the Property.  “Proceeds”
includes anything acquired upon the sale, lease, license, exchange, or other
disposition of the Property; any rights and claims arising from the Property;
and any collections and distributions on account of the Property.  This Agreement remains in effect until
terminated in writing, even if the Secured Debts are paid and Secured Party is
no longer obligated to advance funds to Debtor or Borrower.

 

PROPERTY
DESCRIPTION.  The Property
is described as follows:

 

o            Accounts and Other Rights to
Payment:  All rights
to payment, whether or not earned by performance, including, but not limited
to, payment for property or services sold, leased, rented, licensed, or
assigned.  This includes any rights and
interests (including all liens) which Debtor may have by law or agreement
against any account debtor or obligor of Debtor.

o            Inventory:  All inventory held for ultimate sale or
lease, or which has been or will be supplied under contracts of service, or
which are raw materials, work in process, or materials used or consumed in
Debtor’s business.

o            Equipment:  All equipment including, but not limited to,
machinery, vehicles, furniture, fixtures, manufacturing equipment, farm
machinery and equipment, shop equipment, office and record keeping equipment,
parts, and tools.  The Property includes
any equipment described in a list or schedule Debtor gives to Secured Party,
but such a list is not necessary to create a valid security interest in all of
Debtor’s equipment.

o            instruments and Chattel Paper:  All instruments, including negotiable
instruments and promissory notes and any other writings or records that
evidence the right to payment of a monetary obligation, and tangible and
electronic chattel paper.

o            General Intangibles:  All general intangibles including, but not
limited to, tax refunds, patents and applications for patents, copyrights,
trademarks, trade secrets, goodwill, trade names, customer lists, permits and
franchises, payment intangibles, computer programs and all supporting
information provided in connection with a transaction relating to computer
programs, and the right to use Debtor’s name.

o            Documents:  All documents of title including, but not
limited to, bills of lading, dock warrants and receipts, and warehouse
receipts.

o            Farm Products and Supplies:  All farm products including, but not limited
to, all poultry and livestock and their young, along with their produce,
products, and replacements; all crops, annual or perennial, and all products of
the crops; and all feed, seed, fertilizer, medicines, and other supplies used
or produced in Debtor’s farming operations.

o            Government Payments and Programs:  All payments, accounts, general intangibles,
and benefits including, but not limited to, payments in kind, deficiency
payments, letters of entitlement, warehouse receipts, storage payments,
emergency assistance and diversion payments, production flexibility contracts,
and conservation reserve payments under any preexisting, current, or future
federal or state government program.

o            Investment Property:  All investment property including, but not
limited to, certificated securities, uncertificated securities, securities
entitlements, securities accounts, commodity contracts, commodity accounts, and
financial assets.

o            Deposit Accounts:  All deposit accounts including, but not
limited to, demand, time, savings, passbook, and similar accounts.

x          Specific Property Description:  The Property includes, but is not limited by,
the following (if required, provide real estate description):

 

All equipment, parts, accessories, repairs, replacements, substitutions
and improvements of and to such Equipment and all proceeds of the foregoing
located upon the Flour Mill Real Estate, Onaga Real Estate and Atchison Plant
Real Estate located on the North side of the 1100 block of Main, the North &
South side of 1200 and 1300 main street Atchison Kansas.

 

USE OF PROPERTY.  The
Property will be used for o personal x business o agricultural o                       purposes.

 

SIGNATURES. Debtor agrees
to the terms on pages 1 and 2 of this Agreement and acknowledges receipt
of a copy of this Agreement.

 

	
  DEBTOR

  MGP
  INGREDIENTS, INC. 

  	
   

  	
  SECURED PARTY

  Union
  State Bank of Everest DBA Bank of Atchison USB 

  
	
   

  	
   

  	
   

  
	
  /s/
  Timothy W. Newkirk 

  	
   

  	
  /s/
  Donald E. Ball 

  
	
  Timothy
  W. Newkirk, President and CEO

  	
   

  	
  Donald
  E. Ball, Senior Vice President

  

 

© 2000 Bankers
Systems, Inc., St. Cloud, MN Form 5A-BUS 7/24/2001 13641 CV (6/04)   BOA92377

	
   

  	
  GOTO(00170de8)

  

 

1

 

GENERAL
PROVISIONS.  Each Debtor’s
obligations under this Agreement are independent of the obligations of any
other Debtor.  Secured Party may sue each
Debtor individually or together with any other Debtor.  Secured Party may release any part of the
Property and Debtor will remain obligated under this Agreement.  The duties and benefits of this Agreement
will bind the successors and assigns of Debtor and Secured Party.  No modification of this Agreement is
effective unless made in writing and signed by Debtor and Secured Party.  Whenever used, the plural includes the
singular and the singular includes the plural. 
Time is of the essence.

 

APPLICABLE
LAW.  This Agreement is governed by
the laws of the state in which Secured Party is located.  In the event of a dispute, the exclusive
forum, venue, and place of jurisdiction will be the state in which Secured
Party is located, unless otherwise required by law.  If any provision of this Agreement is
unenforceable by law, the unenforceable provision will be severed and the
remaining provisions will still be enforceable.

 

NAME AND
LOCATION.  Debtor’s name
indicated on page 1 is Debtor’s exact legal name.  If Debtor is an individual, Debtor’s address
is Debtor’s principal residence.  If
Debtor is not an individual, Debtor’s address is the location of Debtor’s chief
executive offices or sole place of business. 
If Debtor is an entity organized and registered under state law, Debtor
has provided Debtor’s state of registration on page 1.  Debtor will provide verification of
registration and location upon Secured Party’s request.  Debtor will provide Secured Party with at
least 30 days notice prior to any change in Debtor’s name, address, or state of
organization or registration.

 

WARRANTIES
AND REPRESENTATIONS.  Debtor has
the right, authority, and power to enter into this Agreement.  The execution and delivery of this Agreement
will not violate any agreement governing Debtor or Debtor’s property, or to
which Debtor is a party.  Debtor makes
the following warranties and representations which continue as long as this
Agreement is in effect:

 

(1)         Debtor is duly organized and
validly existing in all jurisdictions in which Debtor does business;

(2)         the execution and performance
of the terms of this Agreement have been duly authorized, have received all
necessary governmental approval, and will not violate any provision of law or
order;

(3)         other than previously
disclosed to Secured Party, Debtor has not changed Debtor’s name or principal
place of business within the last 10 years and has not used any other trade or
fictitious name; and

(4)         Debtor does not and will not
use any other name without Secured Party’s prior written consent.

 

Debtor
owns all of the Property, and Secured Party’s claim to the Property is ahead of
the claims of any other creditor, except as otherwise agreed and disclosed to
Secured Party prior to any advance on the Secured Debts.  The Property has not been used for any
purpose that would violate any laws or subject the Property to forfeiture or
seizure.

 

DUTIES
TOWARD PROPERTY.  Debtor will
protect the Property and Secured Party’s interest against any competing
claim.  Except as otherwise agreed,
Debtor will keep the Property in Debtor’s possession at the address indicated
on page 1 of this Agreement.  Debtor
will keep the Property in good repair and use the Property only for purposes
specified on page 1.  Debtor will
not use the Property in violation of any law and will pay all taxes and
assessments levied or assessed against the Property.  Secured Party has the right of reasonable
access to inspect the Property, including the right to require Debtor to
assemble and make the Property available to Secured Party.  Debtor will immediately notify Secured Party
of any loss or damage to the Property. 
Debtor will prepare and keep books, records, and accounts about the Property
and Debtor’s business, to which Debtor will allow Secured Party reasonable
access.

 

Debtor
will not sell, offer to sell, license, lease, or otherwise transfer or encumber
the Property without Secured Party’s prior written consent.  Any disposition of the Property will violate
Secured Party’s rights, unless the Property is inventory sold in the ordinary
course of business at fair market value. 
If the Property includes chattel paper or instruments, either as
original collateral or as proceeds of the Property, Debtor will record Secured
Party’s interest on the face of the chattel paper or instruments.  If the Property includes accounts, Debtor
will not settle any account for less than the full value, dispose of the
accounts by assignment, or make any material change in the terms of any account
without Secured Party’s prior written consent. 
Debtor will collect all accounts in the ordinary course of business,
unless otherwise required by Secured Party. 
Debtor will keep the proceeds of the accounts, and any goods returned to
Debtor, in trust for Secured Party and will not commingle the proceeds or
returned goods with any of Debtor’s other property.  Secured Party has the right to require Debtor
to pay Secured Party the full price on any returned items.  Secured Party may require account debtors to
make payments under the accounts directly to Secured Party.  Debtor will deliver the accounts to Secured
Party at Secured Party’s request.  Debtor
will give Secured Party all statements, reports, certificates, lists of account
debtors (showing names, addresses, and amounts owing), invoices applicable to
each account, and any other data pertaining to the accounts as Secured Party
requests.

 

If
the Property includes farm products, Debtor will provide Secured Party with a
list of the buyers, commission merchants, and selling agents to or through whom
Debtor may sell the farm products. 
Debtor authorizes Secured Parry to notify any additional parties
regarding Secured Party’s interest in Debtor’s farm products, unless prohibited
by law.  Debtor agrees to plant,
cultivate, and harvest crops in due season. 
Debtor will be in default if any loan proceeds are used for a purpose
that will contribute to excessive erosion of highly erodible land or to the
conversion of wetland to produce or to make possible the production of an
agricultural commodity, further explained in 7 CFR Part 1940, Subpart G, Exhibit M.  If Debtor pledges the Property to Secured
Party (delivers the Property into the possession or control of Secured Party or
a designated third party), Debtor will, upon receipt, deliver any proceeds and
products of the Property to Secured Party. 
Debtor will provide Secured Party with any notices, documents, financial
statements, reports, and other information relating to the Property Debtor
receives as the owner of the Property.

 

PERFECTION
OF SECURITY INTEREST.  Debtor
authorizes Secured Party to file a financing statement covering the
Property.  Debtor will comply with,
facilitate, and otherwise assist Secured Party in connection with obtaining
possession or control over the Property for purposes of perfecting Secured
Party’s interest under the Uniform Commercial Code.

 

INSURANCE.  Debtor agrees to keep the Property insured
against the risks reasonably associated with the Property until the Property is
released from this Agreement.  Debtor
will maintain this insurance in the amounts Secured Party requires.  Debtor may choose the insurance company, subject
to Secured Party’s approval, which will not be unreasonably withheld.  Debtor will have the insurance provider name
Secured Party as loss payee on the insurance policy.  Debtor will give Secured Party and the
insurance provider immediate notice of any loss.  Secured Party may apply the insurance
proceeds toward the Secured Debts. 
Secured Party may require additional security as a condition of
permitting any insurance proceeds to be used to repair or replace the
Property.  If Secured Party acquires the
Property in damaged condition, Debtor’s rights to any insurance policies and
proceeds will pass to Secured Party to the extent of the Secured Debts.  Debtor will immediately notify Secured Party
of the cancellation or termination of insurance.  If Debtor fails to keep the Property insured,
or fails to provide Secured Party with proof of insurance, Secured Party may
obtain insurance to protect Secured Party’s interest in the Property.  The insurance may include coverages not
originally required of Debtor, may be written by a company other than one
Debtor would choose, and may be written at a higher rate than Debtor could
obtain if Debtor purchased the insurance.

 

AUTHORITY
TO PERFORM.  Debtor
authorizes Secured Party to do anything Secured Party deems reasonably
necessary to protect the Property and Secured Party’s interest in the Property.  If Debtor fails to perform any of Debtor’s
duties under this Agreement, Secured Party is authorized, without notice to
Debtor, to perform the duties or cause them to be performed.  These authorizations include, but are not
limited to, permission to pay for the repair, maintenance, and preservation of
the Property and take any action to realize the value of the Property.  Secured Party’s authority to perform for
Debtor does not create an obligation to perform, and Secured Party’s failure to
perform will not preclude Secured Party from exercising any other rights under
the law or this Agreement.

 

If
Secured Party performs for Debtor, Secured Party will use reasonable care.  Reasonable care will not include any steps
necessary to preserve rights against prior parties or any duty to take action
in connection with the management of the Property.

 

If
Secured Party comes into possession of the Property, Secured Party will
preserve and protect the Property to the extent required by law.  Secured Party’s duty of care with respect to
the Property will be satisfied if Secured Party exercises reasonable care in
the safekeeping of the Property or in the selection of a third party in
possession of the Property.

 

Secured
Party may enforce the obligations of an account debtor or other person
obligated on the Property.  Secured Party
may exercise Debtor’s rights with respect to the account debtor’s or other
person’s obligations to make payment or otherwise render performance to Debtor,
and enforce any security interest that secures such obligations.

 

PURCHASE
MONEY SECURITY INTEREST.  If the
Property includes items purchased with the Secured Debts, the Property
purchased with the Secured Debts will remain subject to Secured Party’s
security interest until the Secured Debts are paid in full.  Payments on any non-purchase money loan also
secured by this Agreement will not be applied to the purchase money loan.  Payments on the purchase money loan will be
applied first to the non-purchase money portion of the loan, if any, and then
to the purchase money portion in the order in which the purchase money Property
was acquired.  If the purchase money
Property was acquired at the same time, payments will be applied in the order
..Secured Party selects.  No security
interest will be terminated by application of this formula.

 

DEFAULT.  Debtor will be in default if any of the
following occurs and Debtor fails to cure the same within five (5) days:

 

(1)          Debtor (or
Borrower, if not the same) fails to make a payment in full when due;

(2)          Debtor fails to
perform any condition or keep any covenant on this or any debt or agreement
Debtor has with Secured Party;

(3)          a default occurs
under the terms of any instrument or agreement as evidencing or pertaining to
the Secured Debts;

(4)          anything else
happens that either causes Secured Party to reasonably believe that Secured
Party will have difficulty in collecting the Secured Debts or significantly
impairs the value of the Property.

 

REMEDIES.  After Debtor defaults, and after Secured
Party gives any legally required notice and opportunity to cure the default,
Secured Party may at Secured Party’s option do any one or more of the
following:

 

(1)         make all or any part of the
Secured Debts immediately due and accrue interest at the highest post-maturity
interest rate;

(2)         require Debtor to gather the
Property and make it available to Secured Party in a reasonable fashion;

(3)         enter upon Debtor’s premises
and take possession of all or any part of Debtor’s property for purposes of
preserving the Property or its value and use and operate Debtor’s property to
protect Secured Party’s interest, all without payment or compensation to
Debtor;

(4)         use any remedy allowed by
state or federal law, or provided in any agreement evidencing or pertaining to
the Secured Debts.

 

If
Secured Party repossesses the Property or enforces the obligations of an
account debtor, Secured Party may keep or dispose of the Property as provided
by law.  Secured Party will apply the
proceeds of any collection or disposition first to Secured Party’s expenses of
enforcement, which includes reasonable attorneys’ fees and legal expenses to
the extent not prohibited by law, and then to the Secured Debts.  Debtor (or Borrower, if not the same) will be
liable for the deficiency, if any.

 

By
choosing any one or more of these remedies, Secured Party does not give up the
right to use any other remedy.  Secured
Party does not waive a default by not using a remedy.

 

WAIVER.  Debtor waives all claims for damages caused
by Secured Party’s acts or omissions where Secured Party acts in good faith.

 

NOTICE
AND ADDITIONAL DOCUMENTS.  Where
notice is required, Debtor agrees that 10 days prior written notice will be
reasonable notice to Debtor under the Uniform Commercial Code.  Notice to one party is notice to all
parties.  Debtor agrees to sign, deliver,
and file any additional documents and certifications Secured Party considers
necessary to perfect, continue, or preserve Debtor’s obligations under this
Agreement and to confirm Secured Party’s lien status on the Property.

 

2Exhibit 4.6.2

 

	
  Return
  To:

  	
  Union
  State Bank of Everest DBA Bank of Atchison USB

  
	
   

  	
  701
  Kansas Avenue

  
	
  Prepared
  By:

  	
  Donald
  E. Ball

  

 

                          State
of Kansas                          Space
Above This Line For Recording Data                          

 

REAL ESTATE MORTGAGE

(With Future Advance Clause)

 

1.                   DATE AND PARTIES.  The date of this
Mortgage (Security Instrument) is July 20,
2009 and the parties, their addresses and tax identification
numbers, if required, are as follows:

 

MORTGAGOR:

MGP INGREDIENTS, INC. a Kansas Corporation

PO Box 130

Atchison, KS 66002

 

o            If checked, refer to the
attached Addendum incorporated herein, for additional Mortgagors, their
signatures and acknowledgments.

 

LENDER:

Union State Bank of Everest DBA Bank of Atchison USB, organized and
existing under the laws of Kansas

701 Kansas Avenue

Atchison, KS 66002

 

Taxpayer ID #: 48-0456400

 

2.                   CONVEYANCE.  For good and valuable consideration, the
receipt and sufficiency of which is acknowledged, and to secure the Secured Debt
(defined below) and Mortgagor’s performance under this Security Instrument,
Mortgagor grants, bargains, conveys, mortgages and warrants to Lender the
following described property:

 

See schedule “A”

 

	
  KANSAS - AGRICULTURAL/COMMERCIAL REAL ESTATE
  SECURITY INSTRUMENT

  	
   

  
	
  (NOT FOR FNMA, FHLMC, FHA OR VA USE, AND NOT FOR
  CONSUMER PURPOSES)

  	
   

  
	
  © 1993,
  2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-KS 11/25/2003

  	
   

  
	
  13615.CV
  (1/04)          BOA92377

  	
  GOTO(00170de6)

  

 

1

 

	
  The
  property is located in

  	
  Atchison

  	
  at

  	
  1300
  Main

  
	
   

  	
  (County)

  	
   

  	
   

  

 

	
  , 

  	
  Atchison

  	
  ,
  Kansas

  	
  66002

  
	
  (Address)

  	
  (City)

  	
   

  	
  (Zip Code)

  

 

Together with all rights,
easements, appurtenances, royalties, mineral rights, oil and gas rights, crops,
timber, all diversion payments or third party payments made to crop producers,
all water and riparian rights, wells, ditches, reservoirs, and water stock and
all existing and future improvements, structures, fixtures, and replacements
that may now, or at any time in the future, be part of the real estate
described above (all referred to as “Property”).

 

3.                   MAXIMUM OBLIGATION LIMIT.  The total principal
amount secured by this Security Instrument at any one time shall not exceed $3,500,000.00.  This limitation of amount does not include
interest and other fees and charges validly made pursuant to this Security
Instrument.  Also, this limitation does
not apply to advances made under the terms of this Security Instrument to
protect Lender’s security and to perform any of the covenants contained in this
Security Instrument.  The limitation is
for the purposes set forth in K.S.A. § 9-1101, § 58-2336 and § 79-3102.

 

4.                   SECURED DEBT AND FUTURE ADVANCES.  The term “Secured
Debt” is defined as follows:

 

A.      Debt incurred under the terms of all promissory note(s),
contract(s), guaranty(ies) or other evidence of debt described below and all
their extensions, renewals, modifications or substitutions.  (When
referencing the debts below it is suggested that you include items such as
borrowers’ names, note amounts, interest rates, maturity dates, etc.)

Note dated July 20th 2009.

B.        All future advances from Lender to Mortgagor or other future
obligations of Mortgagor to Lender under any promissory note, contract,
guaranty, or other evidence of debt existing now or executed after this
Security Instrument whether or not this Security Instrument is specifically
referenced, or such future advances or future obligations are incurred for any
purpose that was related or unrelated to the purpose of the Security
Instrument.  If more than one person
signs this Security Instrument, each Mortgagor agrees that this Security
Instrument will secure all future advances and future obligations that are
given to or incurred by any one or more Mortgagor, or any one or more Mortgagor
and others.  All future advances and
other future obligations are secured by this Security Instrument even though
all or part may not yet be advanced.  All
future advances and other future obligations are secured as if made on the date
of this Security Instrument.  Nothing in
this Security Instrument shall constitute a commitment to make additional or
future loans or advances in any amount. 
Any such commitment must be agreed to in a separate writing.

C.        All obligations Mortgagor owes to Lender, which now exist or
may later arise, to the extent not prohibited by law, including, but not
limited to, liabilities for overdrafts relating to any deposit account
agreement between Mortgagor and Lender.

D.       All additional sums advanced and expenses incurred by Lender
for insuring, preserving or otherwise protecting the Property and its value and
any other sums advanced and expenses incurred by Lender under the terms of this
Security Instrument.

 

This Security Instrument
will not secure any other debt if Lender fails to give any required notice of
the right of rescission.

 

5.                   PAYMENTS.  Mortgagor agrees that all payments under the
Secured Debt will be paid when due and in accordance with the terms of the
Secured Debt and this Security Instrument.

 

6.                   WARRANTY OF TITLE.  Mortgagor warrants
that Mortgagor is or will be lawfully seized of the estate conveyed by this
Security Instrument and has the right to grant, bargain, convey, sell, mortgage
and warrant the Property.  Mortgagor also
warrants that the Property is unencumbered, except for encumbrances of record.

 

7.                   PRIOR SECURITY INTERESTS.  With regard to any
other mortgage, deed of trust, security agreement or other lien document that
created a prior security interest or encumbrance on the Property, Mortgagor
agrees:

 

A.     To make all payments when due and to perform or comply with
all covenants.

B.       To promptly deliver to Lender any notices that Mortgagor
receives from the holder.

C.       Not to allow any modification or extension of, nor to
request any future advances under any note or agreement secured by the lien
document without Lender’s prior written consent.

 

2

 

8.                   CLAIMS AGAINST TITLE.  Mortgagor will pay
all taxes, assessments, liens, encumbrances, lease payments, ground rents,
utilities, and other charges relating to the Property when due.  Lender may require Mortgagor to provide to
Lender copies of all notices that such amounts are due and the receipts
evidencing Mortgagor’s payment. 
Mortgagor will defend title to the Property against any claims that
would impair the lien of this Security Instrument.  Mortgagor agrees to assign to Lender, as
requested by Lender, any rights, claims or defenses Mortgagor may have against
parties who supply labor or materials to maintain or improve the Property.

 

9.                   DUE ON SALE OR ENCUMBRANCE.  Lender may, at its
option, declare the entire balance of the Secured Debt to be immediately due
and payable upon the creation of, or contract for the creation of, any lien,
encumbrance, transfer or sale of all or any part of the Property.  This right is subject to the restrictions
imposed by federal law (12 C.F.R. 591), as applicable.  This covenant shall run with the Property and
shall remain in effect until the Secured Debt is paid in full and this Security
Instrument is released.

 

10.            TRANSFER OF AN INTEREST IN THE MORTGAGE.  If Mortgagor is an
entity other than a natural person (such as a corporation or other
organization), Lender may demand immediate payment if:

 

A.      A beneficial interest in Mortgagor is sold or transferred.

B.        There is a change in either the identity or number of
members of a partnership or similar entity.

C.        There is a change in ownership of more than 25 percent of
the voting stock of a corporation or similar entity.

 

However, Lender may not
demand payment in the above situations if it is prohibited by law as of the
date of this Security Instrument.

 

11.            ENTITY WARRANTIES AND REPRESENTATIONS.  If Mortgagor is an
entity other than a natural person (such as a corporation or other
organization), Mortgagor makes to Lender the following warranties and
representations which shall continue as long as the Secured Debt remains
outstanding:

 

A.      Mortgagor is duly organized and validly existing in
Mortgagor’s state of incorporation or organization.  Mortgagor is in good standing in all states
in which Mortgagor transacts business. 
Mortgagor has the power and authority to own the Property and to carry
on its business as now being conducted and, as applicable, is qualified to do
so in each state in which Mortgagor operates.

B.        The execution, delivery and performance of this Security
Instrument by Mortgagor and the obligations evidenced by the Secured Debt are
within the power of Mortgagor, have been duly authorized, have received all
necessary governmental approval, and will not violate any provision of law, or
order of court or governmental agency.

C.        Other than previously disclosed in writing to Lender,
Mortgagor has not changed its name within the last ten years and has not used
any other trade or fictitious name. 
Without Lender’s prior written consent, Mortgagor does not and will not
use any other name and will preserve its existing name, trade names and
franchises until the Secured Debt is satisfied.

 

12.            PROPERTY CONDITION, ALTERATIONS AND
INSPECTION.  Mortgagor will keep the Property in good
condition and make all repairs that are reasonably necessary.  Mortgagor shall not commit or allow any
waste, impairment, or deterioration of the Property.  Mortgagor will keep the Property free of
noxious weeds and grasses.  Mortgagor
agrees that the nature of the occupancy and use will not substantially change
without Lender’s prior written consent. 
Mortgagor will not permit any change in any license, restrictive
covenant or easement without Lender’s prior written consent.  Mortgagor will notify Lender of all demands,
proceedings, claims, and actions against Mortgagor, and of any loss or damage
to the Property.

 

No portion of the Property
will be removed, demolished or materially altered without Lender’s prior
written consent except that Mortgagor has the right to remove items of personal
property comprising a part of the Property that become worn or obsolete,
provided that such personal property is replaced with other personal property
at least equal in value to the replaced personal property, free from any title
retention device, security agreement or other encumbrance.  Such replacement of personal property will be
deemed subject to the security interest created by this Security Instrument.  Mortgagor shall not partition or subdivide
the Property without Lender’s prior written consent.

 

Lender or Lender’s agents
may, at Lender’s option, enter the Property at any reasonable time for the
purpose of inspecting the Property. 
Lender shall give Mortgagor notice at the time of or before an
inspection specifying a reasonable purpose for the inspection.  Any inspection of the Property shall be
entirely for Lender’s benefit and Mortgagor will in no way rely on Lender’s
inspection.

 

3

 

13.            AUTHORITY TO PERFORM.  If Mortgagor fails
to perform any duty or any of the covenants contained in this Security
Instrument, Lender may, without notice, perform or cause them to be
performed.  Mortgagor appoints Lender as
attorney in fact to sign Mortgagor’s name or pay any amount necessary for
performance.  Lender’s right to perform
for Mortgagor shall not create an obligation to perform, and Lender’s failure
to perform will not preclude Lender from exercising any of Lender’s other
rights under the law or this Security Instrument.  If any construction on the Property is
discontinued or not carried on in a reasonable manner, Lender may take all
steps necessary to protect Lender’s security interest in the Property, including
completion of the construction.

 

14.            ASSIGNMENT OF LEASES AND RENTS.  Mortgagor assigns,
grants, bargains, conveys, mortgages and warrants to Lender as additional
security all the right, title and interest in the following (Property).

 

A.      Existing or future leases, subleases, licenses, guaranties
and any other written or verbal agreements for the use and occupancy of the
Property, including but not limited to, any extensions, renewals, modifications
or replacements (Leases).

 

B.        Rents, issues and profits, including but not limited to,
security deposits, minimum rents, percentage rents, additional rents, common
area maintenance charges, parking charges, real estate taxes, other applicable
taxes, insurance premium contributions, liquidated damages following default,
cancellation premiums, “loss of rents” insurance, guest receipts, revenues,
royalties, proceeds, bonuses, accounts, contract rights, general intangibles,
and all rights and claims which Mortgagor may have that in any way pertain to
or are on account of the use or occupancy of the whole or any part of the
Property (Rents).

 

In the event any item listed
as Leases or Rents is determined to be personal property, this Assignment will
also be regarded as a security agreement.

 

Mortgagor will promptly provide
Lender with copies of the Leases and will certify these Leases are true and
correct copies.  The existing Leases will
be provided on execution of the Assignment, and all future Leases and any other
information with respect to these Leases will be provided immediately after
they are executed.  Mortgagor may
collect, receive, enjoy and use the Rents so long as Mortgagor is not in
default.  Mortgagor will not collect in
advance any Rents due in future lease periods, unless Mortgagor first obtains
Lender’s written consent.  Upon default,
Mortgagor will receive any Rents in trust for Lender and Mortgagor will not
commingle the Rents with any other funds. 
When Lender so directs, Mortgagor will endorse and deliver any payments
of Rents from the Property to Lender. 
Amounts collected will be applied at Lender’s discretion to the Secured
Debts, the costs of managing, protecting and preserving the Property, and other
necessary expenses.  Mortgagor agrees
that this Security Instrument is immediately effective between Mortgagor and
Lender and effective as to third parties on the recording of this Assignment.

 

As long as this Assignment
is in effect, Mortgagor warrants and represents that no default exists under
the Leases, and the parties subject to the Leases have not violated any
applicable law on leases, licenses and landlords and tenants.  Mortgagor, at its sole cost and expense, will
keep, observe and perform, and require all other parties to the Leases to
comply with the Leases and any applicable law. 
If Mortgagor or any party to the Lease defaults or fails to observe any
applicable law, Mortgagor will promptly notify Lender.  If Mortgagor neglects or refuses to enforce
compliance with the terms of the Leases, then Lender may, at Lender’s option,
enforce compliance.

 

Mortgagor will not sublet,
modify, extend, cancel, or otherwise alter the Leases, or accept the surrender
of the Property covered by the Leases (unless the Leases so require) without
Lender’s consent.  Mortgagor will not
assign, compromise, subordinate or encumber the Leases and Rents without Lender’s
prior written consent.  Lender does not
assume or become liable for the Property’s maintenance, depreciation, or other
losses or damages when Lender acts to manage, protect or preserve the Property,
except for losses and damages due to Lender’s gross negligence or intentional
torts.  Otherwise, Mortgagor will
indemnify Lender and hold Lender harmless for all liability, loss or damage
that Lender may incur when Lender opts to exercise any of its remedies against
any party obligated under the Leases.

 

15.            LEASEHOLDS; CONDOMINIUMS; PLANNED UNIT
DEVELOPMENTS.  Mortgagor agrees to comply with the
provisions of any lease if this Security Instrument is on a leasehold.  If the Property includes a unit in a condominium
or a planned unit development, Mortgagor will perform all of Mortgagor’s duties
under the covenants, by-laws, or regulations of the condominium or planned unit
development.

 

16.            DEFAULT.  Mortgagor will be in default if any of the
following occur:

 

A.      Any party obligated on the Secured Debt fails to make
payment when due or within five (5) days thereafter;

B.        A breach of any term or covenant in this Security Instrument
or any other document executed for the purpose of creating, securing or
guarantying the Secured Debt which is not cured within any grace period
provided;

C.        The making or furnishing of any verbal or written
representation, statement or warranty to Lender that is false or incorrect in
any material respect by Mortgagor or any person or entity obligated on the
Secured Debt;

 

4

 

D.       The death, dissolution, or insolvency of, appointment of a
receiver for, or application of any debtor relief law to, Mortgagor or any
other person or entity obligated on the Secured Debt;

E.         A good faith belief by Lender at any time that the prospect
of any payment is impaired or the value of the Property is impaired;

F.         A material adverse change in Mortgagor’s business which
Lender in its opinion believes impairs the value of the Property or repayment
of the Secured Debt; or

G.        Any loan proceeds are used for a purpose that will
contribute to excessive erosion of highly erodible land or to the conversion of
wetlands to produce an agricultural commodity, as further explained in 7 C.F.R.
Part 1940, Subpart G, Exhibit M.

 

17.            REMEDIES ON DEFAULT.  In some instances,
federal and state law will require Lender to provide Mortgagor with notice of
the right to cure or other notices and may establish time schedules for
foreclosure actions.  Subject to these
limitations, if any, Lender may accelerate the Secured Debt and foreclose this
Security Instrument in a manner provided by law if Mortgagor is in default.

 

At the option of Lender, all
or any part of the agreed fees and charges, accrued interest and principal
shall become immediately due and payable, after giving notice if required by
law, upon the occurrence of a default or anytime thereafter.  In addition, Lender shall be entitled to all
the remedies provided by law, the terms of the Secured Debt, this Security
Instrument and any related documents. 
All remedies are distinct, cumulative and not exclusive, and the Lender
is entitled to all remedies provided at law or equity, whether or not expressly
set forth.  The acceptance by Lender of
any sum in payment or partial payment on the Secured Debt after the balance is
due or is accelerated or after foreclosure proceedings are filed shall not
constitute a waiver of Lender’s right to require complete cure of any existing
default.  By not exercising any remedy on
Mortgagor’s default, Lender does not waive Lender’s right to later consider the
event a default if it continues or happens again.

 

18.            EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS’
FEES; COLLECTION COSTS.  Except when prohibited by law, Mortgagor
agrees to pay all of Lender’s expenses if Mortgagor breaches any covenant in
this Security Instrument.  Mortgagor will
also pay on demand any amount incurred by Lender for insuring, inspecting,
preserving or otherwise protecting the Property and Lender’s security
interest.  These expenses will bear
interest from the date of the payment until paid in full at the highest
interest rate in effect as provided in the terms of the Secured Debt.  Mortgagor agrees to pay all reasonable costs
and expenses incurred by Lender in collecting, enforcing or protecting Lender’s
rights and remedies under this Security Instrument.  This amount may include, but is not limited
to, collection agency fees or attorneys’ fees, but not both, and other legal
costs and expenses incurred by Lender in exercising any remedy under this Loan
or under the law, for all persons other than salaried employees of Lender.  This Security Instrument shall remain in
effect until released.

 

19.            ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES.  As used in this
section, (1) Environmental Law means, without limitation, the
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA,
42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations,
ordinances, court orders, attorney general opinions or interpretive letters
concerning the public health, safety, welfare, environment or a hazardous
substance; and (2) Hazardous Substance means any toxic, radioactive or
hazardous material, waste, pollutant or contaminant which has characteristics
which render the substance dangerous or potentially dangerous to the public
health, safety, welfare or environment. 
The term includes, without limitation, any substances defined as “hazardous
material,” “toxic substances,” “hazardous waste,” “hazardous substance” or “regulated
substance” under any Environmental Law.

 

Mortgagor represents,
warrants and agrees that, except as disclosed in a Phase I report provided to
lender:

 

A.      Except as previously disclosed and acknowledged in writing
to Lender, no Hazardous Substance has been, is, or will be located,
transported, manufactured, treated, refined, or handled by any person on, under
or about the Property, except in the ordinary course of business and in strict
compliance with all applicable Environmental Law.

B.        Except as previously disclosed and acknowledged in writing
to Lender, Mortgagor has not and will not cause, contribute to, or permit the
release of any Hazardous Substance on the Property.

C.        Mortgagor will immediately notify Lender if (1) a
release or threatened release of Hazardous Substance occurs on, under or about
the Property or migrates or threatens to migrate from nearby property; or (2) there
is a violation of any Environmental Law concerning the Property.  In such an event, Mortgagor will take all
necessary remedial action in accordance with Environmental Law.

D.       Except as previously disclosed and acknowledged in writing
to Lender, Mortgagor has no knowledge of or reason to believe there is any
pending or threatened investigation, claim, or proceeding of any kind relating
to (1) any Hazardous Substance located on, under or about the Property; or
(2) any violation by Mortgagor or any tenant of any Environmental
Law.  Mortgagor will immediately notify
Lender in writing as soon as Mortgagor has reason to believe there is any such
pending or threatened investigation, claim, or proceeding.  In such an event, Lender has the right, but
not the obligation, to participate in any such proceeding including the right
to receive copies of any documents relating to such proceedings.

 

5

 

E.         Except as previously disclosed and acknowledged in writing
to Lender, Mortgagor and every tenant have been, are and shall remain in full
compliance with any applicable Environmental Law.

F.         Except as previously disclosed and acknowledged in writing
to Lender, there are no underground storage tanks, private dumps or open wells
located on or under the Property and no such tank, dump or well will be added
unless Lender first consents in writing.

G.        Mortgagor will regularly inspect the Property, monitor the
activities and operations on the Property, and confirm that all permits,
licenses or approvals required by any applicable Environmental Law are obtained
and complied with.

H.       Mortgagor will permit, or cause any tenant to permit, Lender
or Lender’s agent to enter and inspect the Property and review all records at
any reasonable time to determine (1) the existence, location and nature of
any Hazardous Substance on, under or about the Property; (2) the
existence, location, nature, and magnitude of any Hazardous Substance that has
been released on, under or about the Property; or (3) whether or not
Mortgagor and any tenant are in compliance with applicable Environmental Law.

I.            Upon Lender’s request and at any time, Mortgagor agrees, at
Mortgagor’s expense, to engage a qualified environmental engineer to prepare an
environmental audit of the Property and to submit the results of such audit to
Lender.  The choice of the environmental
engineer who will perform such audit is subject to Lender’s approval.

J.           Lender has the right, but not the obligation, to perform any
of Mortgagor’s obligations under this section at Mortgagor’s expense.

K.       As a consequence of any breach of any representation,
warranty or promise made in this section, (1) Mortgagor will indemnify and
hold Lender and Lender’s successors or assigns harmless from and against all
losses, claims, demands, liabilities, damages, cleanup, response and remediation
costs, penalties and expenses, including without limitation all costs of
litigation and attorneys’ fees, which Lender and Lender’s successors or assigns
may sustain; and (2) at Lender’s discretion, Lender may release this
Security Instrument and in return Mortgagor will provide Lender with collateral
of at least equal value to the Property secured by this Security Instrument
without prejudice to any of Lender’s rights under this Security Instrument.

L.         Notwithstanding any of the language contained in this
Security Instrument to the contrary, the terms of this section shall survive
any foreclosure or satisfaction of this Security Instrument regardless of any
passage of title to Lender or any disposition by Lender of any or all of the
Property.  Any claims and defenses to the
contrary are hereby waived.

 

20.            CONDEMNATION.  Mortgagor will give
Lender prompt notice of any pending or threatened action, by private or public
entities to purchase or take any or all of the Property through condemnation,
eminent domain, or any other means, Mortgagor authorizes Lender to intervene in
Mortgagor’s name in any of the above described actions or claims.  Mortgagor assigns to Lender the proceeds of
any award or claim for damages connected with a condemnation or other taking of
all or any part of the Property.  Such
proceeds shall be considered payments and will be applied as provided in this
Security Instrument.  This assignment of
proceeds is subject to the terms of any prior mortgage, deed of trust, security
agreement or other lien document.

 

21.            INSURANCE.  Mortgagor agrees to maintain insurance as
follows:

 

A.      Mortgagor shall keep the Property insured against loss by
fire, flood, theft and other hazards and risks reasonably associated with the
Property due to its type and location. 
This insurance shall be maintained in the amounts and for the periods
that Lender requires.  What Lender
requires pursuant to the preceding two sentences can change during the term of
the Secured Debt.  The insurance carrier
providing the insurance shall be chosen by Mortgagor subject to Lender’s
approval, which shall not be unreasonably withheld.  If Mortgagor fails to maintain the coverage
described above, Lender may, at Lender’s option, obtain coverage to protect
Lender’s rights in the Property according to the terms of this Security
Instrument.

 

All insurance policies and renewals shall be
acceptable to Lender and shall include a standard “mortgage clause” and, where
applicable, “loss payee clause.” 
Mortgagor shall immediately notify Lender of cancellation or termination
of the insurance.  Lender shall have the
right to hold the policies and renewals. 
If Lender requires, Mortgagor shall immediately give to Lender all
receipts of paid premiums and renewal notices. 
Upon loss, Mortgagor shall give immediate notice to the insurance
carrier and Lender.  Lender may make
proof of loss if not made immediately by Mortgagor.

 

Unless otherwise agreed in writing, all
insurance proceeds shall be applied to restoration or repair of the Property or
to the Secured Debt, whether or not then due, at Lender’s option.  Any application of proceeds to principal
shall not extend or postpone the due date of scheduled payment nor change the
amount of any payment.  Any excess will
be paid to the Mortgagor.  If the Property
is acquired by Lender, Mortgagor’s right to any insurance policies and proceeds
resulting from damage to the Property before the acquisition shall pass to
Lender to the extent of the Secured Debt immediately before the acquisition.

 

B.        Mortgagor agrees to maintain comprehensive general liability
insurance naming Lender as an additional insured in an amount acceptable to
Lender, insuring against claims arising from any accident or occurrence in or
on the Property.

 

6

 

C.        Mortgagor agrees to maintain rental loss or business
interruption insurance, as required by Lender, in an amount equal to at least
coverage of one year’s debt service, and required escrow account deposits (if
agreed to separately in writing), under a form of policy acceptable to Lender.

 

22.            ESCROW FOR TAXES AND INSURANCE.  Unless otherwise
provided in a separate agreement, Mortgagor will not be required to pay to
Lender funds for taxes and insurance in escrow.

 

23.            FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS.  Mortgagor will
provide to Lender upon request, any financial statement or information Lender
may deem reasonably necessary.  Mortgagor
agrees to sign, deliver, and file any additional documents or certifications
that Lender may consider necessary to perfect, continue, and preserve Mortgagor’s
obligations under this Security Instrument and Lender’s lien status on the
Property.

 

24.            JOINT AND INDIVIDUAL LIABILITY; CO-SIGNERS;
SUCCESSORS AND ASSIGNS BOUND.  All duties under this Security Instrument are
joint and individual.  If Mortgagor signs
this Security Instrument but does not sign an evidence of debt, Mortgagor does
so only to mortgage Mortgagor’s interest in the Property to secure payment of
the Secured Debt and Mortgagor does not agree to be personally liable on the
Secured Debt.  If this Security
Instrument secures a guaranty between Lender and Mortgagor, Mortgagor agrees to
waive any rights that may prevent Lender from bringing any action or claim
against Mortgagor or any party indebted under the obligation.  These rights may include, but are not limited
to, any anti-deficiency or one-action laws. 
Mortgagor agrees that Lender and any party to this Security Instrument
may extend, modify or make any change in the terms of this Security Instrument
or any evidence of debt without Mortgagor’s consent.  Such a change will not release Mortgagor from
the terms of this Security Instrument. 
The duties and benefits of this Security Instrument shall bind and
benefit the successors and assigns of Mortgagor and Lender.

 

25.            APPLICABLE LAW; SEVERABILITY;
INTERPRETATION.  This Security Instrument is governed by the
laws of the jurisdiction in which Lender is located, except to the extent
otherwise required by the laws of the jurisdiction where the Property is
located.  This Security Instrument is
complete and fully integrated.  This
Security Instrument may not be amended or modified by oral agreement.  Any section in this Security Instrument,
attachments, or any agreement related to the Secured Debt that conflicts with
applicable law will not be effective, unless that law expressly or impliedly
permits the variations by written agreement. 
If any section of this Security Instrument cannot be enforced according
to its terms, that section will be severed and will not affect the
enforceability of the remainder of this Security Instrument.  Whenever used, the singular shall include the
plural and the plural the singular.  The captions
and headings of the sections of this Security Instrument are for convenience
only and are not to be used to interpret or define the terms of this Security
Instrument.  Time is of the essence in
this Security Instrument.

 

26.            NOTICE.  Unless otherwise required by law, any notice
shall be given by delivering it or by mailing it by first class mail to the
appropriate party’s address on page 1 of this Security Instrument, or to
any other address designated in writing. 
Notice to one mortgagor will be deemed to be notice to all mortgagors.

 

27.            WAIVERS.  Except to the extent prohibited by law,
Mortgagor waives all appraisement, homestead exemption, and redemption rights
relating to the Property.  However, the
waiver of redemption is not applicable to that portion of the Property that
covers agricultural land or a single or two-family dwelling owned by or held in
trust for a natural person.

 

28.            U.C.C. PROVISIONS.  If checked, the
following are applicable to, but do not limit, this Security Instrument:

 

o            Construction Loan.  This Security Instrument secures an
obligation incurred for the construction of an improvement on the Property.

 

x          Fixture Filing.  Mortgagor grants to Lender a security
interest in all goods that Mortgagor owns now or in the future and that are or
will become fixtures related to the Property.

 

o            Crops; Timber; Minerals; Rents, Issues and
Profits.  Mortgagor
grants to Lender a security interest in all crops, timber and minerals located
on the Property as well as all rents, issues, and profits of them including,
but not limited to, all Conservation Reserve Program (CRP) and Payment in Kind
(PIK) payments and similar governmental programs (all of which shall also be
included in the term “Property”).

 

o            Personal Property.  Mortgagor grants to Lender a security
interest in all personal property located on or connected with the Property,
including all farm products, inventory, equipment, accounts, documents,
instruments, chattel paper, general intangibles, and all other items of
personal property Mortgagor owns now or in the future and that are used or
useful in the construction, ownership, operation, management, or maintenance of
the Property (all of which shall also be included in the term “Property”).  The term “personal property” specifically
excludes that property described as “household goods” secured in connection with
a “consumer” loan as those terms are defined in applicable federal regulations
governing unfair and deceptive credit practices.

 

7

 

x          Filing As Financing Statement.  Mortgagor agrees and acknowledges that this
Security Instrument also suffices as a financing statement and any carbon,
photographic or other reproduction may be filed of record for purposes of Article 9
of the Uniform Commercial Code.

 

29.            OTHER TERMS.  If checked, the following are applicable to
this Security Instrument:

 

o            Line of Credit.  The Secured Debt includes a revolving line of
credit provision.  Although the Secured
Debt may be reduced to a zero balance, this Security Instrument will remain in
effect until released.

 

o            Agricultural Property.  Mortgagor covenants and warrants that the
Property will be used principally for agricultural or farming purposes and that
Mortgagor is an individual or entity allowed to own agricultural land as
specified by law.

 

o            Purchase Money Mortgage.  The Secured Debt includes money which is used
in whole or in part to purchase the Property.

 

o            Separate Assignment.  The Mortgagor has executed or will execute a
separate assignment of leases and rents. 
If the separate assignment of leases and rents is properly executed and
recorded, then the separate assignment will supersede this Security Instrument’s
“Assignment of Leases and Rents” section.

 

o            Additional Terms.

 

See loan agreement &
Loan.

 

30.            WAIVER OF JURY TRIAL.  To the extent not
prohibited by law, Mortgagor and Lender knowingly and intentionally waive the
right, which the party may have, to a trial by jury with respect to any
litigation arising from the Secured Debt, or any other agreement executed in
conjunction with the Evidence of Debt and this Mortgage.  Mortgagor and Lender each acknowledge that
this section has either been brought to the attention of each party’s legal
counsel or that each party had the opportunity to do so.

 

8

 

SIGNATURES:  By signing below, Mortgagor agrees to the
terms and covenants contained in this Security Instrument and in any
attachments.  Mortgagor also acknowledges
receipt of a copy of this Security Instrument on the date stated on page 1.

 

	
  Entity
  Name:

  	
   

  	
  MGP
  INGREDIENTS, INC.

  	
   

  	
  Entity
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Timothy W. Newkirk

  	
   

  	
   

  	
   

  	
   

  
	
  (Signature)

  	
  Timothy
  W. Newkirk, President and CEO      (Date)

  	
   

  	
  (Signature)

  	
   

  	
  (Date) 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Signature)

  	
  (Date)  

  	
   

  	
  (Signature)

  	
  (Date) 

  
									

 

ACKNOWLEDGMENT:

 

	
  (Individual)

  	
  STATE
  OF                            COUNTY
  OF
                                  }
  ss.

  
	
  This
  instrument was acknowledged before me this day of
           day of                                 

  
	
  by                                                                                                                      

  
	
  My
  commission expires: 

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Notary Public)

  

 

	
   

  	
  STATE
  OF Kansas, COUNTY OF Atchison} ss.

  
	
  (Business or Entity Acknowledgment

  	
  This
  instrument was acknowledged before me this day of 20th
  day of July 2009 by Timothy W. Newkirk, President & CEO (Title(s)) of
  MGP INGREDIENTS, INC. (Name of
  Business or Entity) a Kansas Corporation on
  behalf of the business or entity.

  
	
   

  	
  My
  commission expires: 9/1/12 

  
	
   

  	
   

  	
  /s/ Donald E. Ball

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Notary Public)

  

 

9

 

Schedule “A”

MGP Ingredients, Inc.

July 20, 2009

 

Parcel
1:

 

(Intentionally
omitted)

 

Parcel
2:

 

(Intentionally
omitted)

 

Parcel
3:

 

West
Thirty-five feet (35') of Lot Three (3), Block twenty and one-half (201/2), in
West Atchison, an addition to the City of Atchison.

 

Parcel
4:

 

The
West Half of Lot two (2), in Block twenty and one-half (201/2), in West
Atchison, an addition to the City of Atchison.

 

Parcel
5:

 

Lot
One (1) and the East Half of Lot Two (2), in Block twenty and one-half
(201/2), in West Atchison, an addition to the City of Atchison.

 

Parcel
6:

 

The
East Thirty-eight and three-fourths feet (E 38.75') of Lot Three (3), Block
twenty and one-half (201/2), in that part of the City of Atchison known and
designated as West Atchison.

 

Parcel
7:

 

The
East one-half (E1/2) of Lot Four (4), Block twenty and one-half (201/2) in West
Atchison, an addition to the City of Atchison.

 

Parcel
8:

 

The
West one-half (W1/2) of Lot Four (4), Block twenty and one-half (201/2), in
West Atchison, an addition to the City of Atchison.

 

Parcel
9:

 

Lot
Five (5) in Block twenty and one-half (2.01/2), in West Atchison, an
addition to the City of Atchison.

 

A-1

 

Parcel
10:

 

The
South Thirty feet (30') of Lot Six (6), Block twenty (20), West Atchison, an
addition to the City of Atchison.

 

Parcel
11:

 

The
North Ninety feet of Lot six (6), in Block Twenty (20) in West Atchison, an
addition to the City of Atchison, Kansas, together with the West vacated Thirty
feet of Roberts Street, which abut on the East of said North Ninety feet of Lot
six.

 

Parcel
12:

 

The
East (E) Forty (40) feet of Lot Seven (7), in Block twenty (Blk 20), in
West Atchison (WA), an addition to the City of Atchison.

 

Parcel
13:

 

The
West Thirty-three and three-fourths feet (33 3/4') of Lot Seven (7), the East
Eleven and One-fourth feet (111/4') of Lot Eight (8), Block twenty (20), West
Atchison, an addition to the City of Atchison.

 

Parcel
14:

 

The
East thirty feet (30') of the West sixty-two and one-half feet (62W) of Lot
Eight (8), Block twenty (20), West Atchison, an addition to the City of
Atchison.

 

Parcel
15:

 

All
of the West Thirty-two and one-half feet (W 32'/2') of Lot Eight (8), Block
twenty (20), West Atchison, an addition to the City of Atchison.

 

Parce
16:

 

The
East Forty-seven feet (47') of Lot Ten (10), Block twenty (20), West Atchison,
an addition to the City of Atchison.

 

Parcel
17:

 

The
North Thirty feet (30') of the South sixty feet (60') of Lot Six (6), Block
twenty (20), West Atchison, an addition to the City of Atchison.

 

Parcel
18:

 

The
East Fifty Eight feet (E 58') of Lot Eight (8), Block twenty and one-half
(201/2), in West Atchison, an addition to the City of Atchison.

 

A-2

 

Parcel
19:

 

The
East (E) Seventy-three and one-third (73 1/3) feet of Lot Seven (LT 7),
and the West (W) Fifty-two (52) feet of Lot Eight (LT 8), Block twenty and
one-half (201/2) in West Atchison, an addition to the City of Atchison.

 

Parcel
20:

 

The
East Three feet (E 3') and Nine inches (9") of Lot six (6) and the
West thirty-six feet (W 36') and Eight inches (8") of Lot Seven (7), all
in Block twenty and one-half (201/2) in West Atchison, an addition to the City
of Atchison.

 

Parcel
21:

 

The
West Eighty-five feet (W 85') of Lot six (LT 6), in Block twenty and one-half
(Blk 201/2), in West Atchison, an addition to the City of Atchison.

 

Parcel
22:

 

Lot
Eleven (Lt 11) and the West (W) Thirty (30) feet of vacated Roberts
Street, all in Block twenty (Blk 20), in West Atchison, an addition to the City
of Atchison, Kansas.

 

Parcel
23:

 

Tract
No. 1

 

Lots
1 to 16, both inclusive, Block 211/2, West Atchison, an addition to the City of
Atchison, Kansas, together with all adjacent tracts out of the streets and
alleys adjoining said Lots heretofore acquired, by reversion, upon the vacation
of said streets and alleys.

 

Tract
No. 2

 

Lots
9, 10, and 11, Block 21, West Atchison, an addition to the City of Atchison,
Kansas, and the West 30 feet of vacated Roberts Street East of and adjoining
said Lot 11, excepting the following described tract:

 

Beginning
at a point 14 feet East of the Southeast corner of said Lot 11; thence East 16
feet to the center line of Roberts Street (now vacated); thence North along
said center line 30 feet; thence southwesterly 34 feet to the point of
beginning, together with all adjacent tracts out of the streets and alleys
adjoining the tract above described heretofore acquired, by reversion, upon the
vacation of said streets and alleys.

 

A-3

 

Tract
No. 3

 

Lot
6, Block 21, West Atchison, an addition to the City of Atchison, Kansas, and
the West 30 feet of vacated Roberts Street East of and adjoining said Lot,
except the following described tract:

 

Beginning
at the Northwest corner of said Lot 6; thence East along the North line of said
Lot and the Easterly continuation thereof 100 feet; thence South 100 feet;
thence West 100 feet to a point on the West line of said Lot 6; thence North
100 feet to the point of beginning. Together with all adjacent tracts out of
the streets and alleys adjoining the tract above described heretofore acquired,
by reversion, upon the vacation of said streets and alleys.

 

Tract
No. 4

 

Lots
1 to 8, both inclusive, Block 50, L. C. Challiss Addition, an addition to the
City of Atchison, Kansas, together with all adjacent tracts out of the streets
and alleys adjoining said lots heretofore acquired, by reversion, upon the
vacation of said streets and alleys.

 

Tract
No. 5

 

All
that part of Block 28, John Roberts’ Third Addition, now vacated together with
a portion of Utah Avenue adjacent thereto, now vacated, in West Atchison, an
addition to the City of Atchison, Kansas, described as follows:

 

Beginning
at the point on the South line of Utah Avenue (now vacated) approximately 165
feet West of the Northeast corner of said Block 28, measured along the North
line of said Block (said point being 9 feet Northwesterly of, measured at right
angles to, the center line of the Missouri Pacific Railroad Co. Track No. 17-137);
thence Southwesterly along a line making a Southwest angle of 54°14' with said
North line of said Block 28 a distance of 70 feet to a point (said point being
9 feet Northwesterly of, measured at right angles to, the center line of said
Track 17-137); thence Northwesterly at right angles to the last described
course 10 feet to a point (said point being 9 feet Northwesterly of, measured
at right angles to, the center line of the Missouri Pacific Railroad Co. Tract No. 17-138);
thence Southwesterly along a line turning an angle of 82°53' to the left of the
last described course 80 feet to a point (said point being 9 feet Northwesterly
of, measured at right angles to, the center line of said Track No. 17-138);
thence Southwesterly along a line turning an angle of 10°03' to the right of
the last described course 67.5 feet to a point (said point being 9 feet
Northwesterly of, measured at right angles to, the center line of said Track No. 17-138);
thence Southwesterly along a line turning an angle of 9°32' to the right of the
last described course 67.5 feet to a point (said point being 9 feet
Northwesterly of, measured at right angles to, the center line of said Track No. 17-138);
thence Southwesterly along a line turning an angle of 5°32' to the right of the
last described course 67.5 feet to a point (said point being 9 feet
Northwesterly of, measured at right angles to, the center line of said Track No. 17-138);
thence Southwesterly along a line turning an angle of 5° to the right of the
last described course 136 feet, more or less, to a point on the West line of
said Block 28 (said point being 9 feet Northwesterly of, measured at right
angles to, the center line of said Track No. 17-138); thence Northwesterly
along the West line of said Block 28 and the extension thereof 285 feet, more
or 

 

A-4

 

less,
to the center line of vacated Utah Avenue; thence East along the center line of
vacated Utah Avenue 445 feet, thence Southwesterly along a line turning an angle
of 114°18' to the right of the last described course 44.6 feet, more or less,
to the point of beginning.

 

Parcel
24:

 

Lot
8, in Block 21, in that part of the City of Atchison usually known and
designated as West Atchison, an Addition to the City of Atchison.

 

Parcel
25:

 

The
North One Hundred feet (N 100') of Lot Seven (7), in Block twenty-one (21), in
West Atchison, an addition to the City of Atchison.

 

Parcel
26:

 

The
South (S) Fifty (50) feet of Lot Seven (Lt 7), Block Twenty-one (Blk 21),
in West Atchison (WA), an addition to the City of Atchison, Atchison County,
Kansas, according to the Recorded Plat Thereof.

 

Parcel
27:

 

The
East Fifty-six feet (56') of Lot Twenty (20), in Block Twenty-Two (22), in West
Atchison, an addition to the City of Atchison.

 

Parcel
28:

 

The
East Twenty-six feet Ten inches (26'10”) of Lot Seventeen (17), Block
Twenty-two (22), West Atchison, an addition to the City of Atchison.

 

Parcel
29:

 

The
North Eighty-seven and one-half feet (N 87W) of Lots One (1) and Two (2),
in Block Twenty-two (22), in West Atchison, an addition to the City of
Atchison.

 

Parcel
30:

 

The
South sixty-two and one-half feet (621/2') of Lot One (1) and the South
sixty-two and one-half feet (62W) of Lot Two (2), Except the West twenty-five
feet (25') of said Lot Two (2), all in Block Twenty-two (22), in West Atchison,
an addition to the City of Atchison.

 

Parcel
31: (Intentionally omitted)

 

Parcel
32: (Intentionally omitted)

 

A-5

 

Parcel
33:

 

(Intentionally
omitted)

 

Parcel
34:

 

(Intentionally
omitted)

 

Parcel
35:

 

Tracts
No 1, 2 and 3 Intentionally omitted.

 

Tract
No 4

 

All
of Lots Twenty-five (25) and Twenty-six (26) and the West 0.50 feet of Lot
Twenty- seven (27), in Block Forty (40), in L. C. Challiss Addition to the City
of Atchison.

 

Parcel
36:

 

The
South 76 feet of Lots One (1) and Two (2), in Block Forty (40), in L. C.
Challiss Addition, an addition to the City of Atchison.

 

Parcel
37:

 

Lots
Fifteen (15) and Sixteen (16), in Block Forty (40), L. C. Challiss Addition, an
addition to the City of Atchison.

 

Parcel
38:

 

Lot
Seventeen (17), and the East Ten (10) feet of Lot Eighteen (18), Block
Forty (40) in the L. C. Challiss Addition to the City of Atchison.

 

Parcel
39:

 

Lot
Nineteen (19) and the West Fifteen feet (W 15') of Lot Eighteen (18), in Block
Forty (40), in L. C. Challiss Addition to the City of Atchison.

 

Parcel
40:

 

All
of Lots 35 to 38 inclusive, in Block 40, L. C. Challiss Addition to the City of
Atchison, Atchison County, Kansas, Except that part of the same that is South
of the Most Northwesterly right of way line of the Missouri Pacific Railroad
Co. and running through said Lots in Block 40, L. C. Challiss Addition.

 

A-6

 

Parcel
41:

 

(Intentionally
omitted) Same description as Parcel 36.

 

Parcel
42:

 

All
of Lots 39 and 40 of Block 40 of the L. C. Challiss Addition to the City of
Atchison, Atchison County, Kansas, and all those portions of Lots 31, 32, 33,
34, 35, 36, 37 and 38 of said Block 40 that lie Southeasterly and Easterly of
the Southeasterly line of that certain strip of land described in General
Warranty Deed dated October 14, 1929, from Missouri Pacific Railroad
Company to Pillsbury Flour Mills Company, identified in the Missouri Pacific
Railroad Deed Records as Document No. 1600306 #3-2.

 

Also
the North 30 feet of Lot 42 of Block 40 of the L. C. Challiss Addition to the
City of Atchison.

 

Parcel
43:

 

(Intentionally
omitted)

 

Parcel
44:

 

Lots
One (1) through Sixteen (16), inclusive, and Lot Twenty-two (22), in Block
Forty- eight (48), in L. C. Challiss’ Addition to the City of Atchison,
Atchison County, Kansas; and

 

A
tract in the Southeast Quarter (SE%) of the Northwest Quarter (NW’) of Section One
(1), Township Six (6), Range Twenty (20), described as follows:

 

Beginning
at a point in the West line of Thirteenth Street in the City of Atchison, 320
feet Northwardly from the intersection of said West line with the East and West
center line of said Section 1, thence Southwardly along said West line 15
feet more or less to a point in the Northwesterly line of a tract of land
condemned by the City of Atchison pursuant to Ordinance No. 3966,
Report of Condemnation being recorded in Book 234, Page 523, of the
Register of Deeds’ office for Atchison County, thence Southwestwardly along
said Northwesterly line to a point in the prolongation Southerly of the East
line of Fourteenth Street, thence Northwardly along said prolongation 390 feet
more or less to an intersection with the Southeasterly line of property of the
Atchison, Topeka and Santa Fe Railway Company, thence Northeastwardly along
said Southeasterly line 610 feet more or less to a point in the West line of
Thirteenth Street vacated Under Ordinance No. 3192, dated May 24,
1915, thence Eastwardly by a straight line at right angles to said West line of
Thirteenth Street 30 feet to the center line of said Thirteenth Street vacated,
thence Southwardly along said center line 400 feet more or less to the
Southerly line of that part of Thirteenth Street vacated under said Ordinance,
thence Westwardly along said Southerly line 30 feet to the point of beginning,
Containing 5.85 acres more or less.

 

A-7

 

Parcel
45:

 

Lots
One and Two (1 & 2) and the North Sixty Five feet (N 65') and the East
Half (E1/2) of the South eighty-five feet (S 85') of Lot Three (3) in
Block Fifty-one (51), in L. C. Challiss Addition to the City of Atchison.

 

Parcel
46:

 

Lots
Thirteen and Fourteen (Lts 13 & 14), Block Fifty-one (Blk 51), in L.
Challiss’ Addition to the City of Atchison.

 

Parcel
47:

 

All
of Lots Twenty-three (23) and Twenty-four (24), in Block Fifty-one (51) in that
part of the City of Atchison known and designated as L. C. Challiss Addition.

 

Parcel
48:

 

Lots
Nineteen (19), Twenty (20), Twenty-one (21) and Twenty-two (22), Block
Fifty-one (51), L. C. Challiss Addition to the City of Atchison.

 

Parcel
49:

 

Lots
Fifteen (15), Sixteen (16), Seventeen (17) and Eighteen (18), Block Fifty-one
(51) in L. C. Challiss Addition to the City of Atchison.

 

Parcel
50:

 

(Intentionally
omitted)

 

All
in Atchison County, Kansas.

 

A-8

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