Document:

Exhibit 4.2.2

Execution Version

 

ASSIGNMENT OF INCOME TAX REFUNDS AND PROCEEDS

 

THIS
ASSIGNMENT OF INCOME TAX REFUNDS AND PROCEEDS (the “Assignment”) is entered into this 20th day of July,
2009, by and between MGP INGREDIENTS, INC.
f/k/a Midwest Grain Products, Inc., a Kansas corporation, whose
address is 100 Commercial Street, Box 130, Atchison, Kansas  (together
with its subsidiaries and affiliates, the “Assignor”), and CENTRAL
ILLINOIS LIGHT COMPANY, an Illinois corporation,
whose address is 300 Liberty Street, Peoria, Illinois 61602 (“CILCO”).

 

WITNESSETH:

 

WHEREAS, Assignor has filed Assignor’s income tax
returns with the United States Internal Revenue Service (the “IRS”) for Assignor’s
fiscal year ending July 1, 2007  (the “Tax
Return”); and

 

WHEREAS,  in
connection with the transactions contemplated by that certain Restructuring
Agreement dated of even date herewith by and between Assignor and CILCO (the “Restructuring
Agreement”), Assignor has delivered a Promissory Note dated July 17, 2009
executed by Assignor and payable to the order of CILCO in the original
principal amount of Eleven Million Six Hundred Fourteen Thousand One Hundred
Ninety-Seven Dollars and Nineteen Cents ($11,614,197.19) (as amended from time
to time, the “Note”); and

 

WHEREAS, as required by the Restructuring
Agreement and in order to secure payment of the Note and any and all other
obligations hereafter arising from Assignor to CILCO (collectively, the “Obligations”),
Assignor has agreed to assign to CILCO all of Assignor’s right, title and interest
in and to any proceeds or refunds payable by the IRS pursuant to the filing of
the Tax Return and any and all amendments thereto (collectively, the “Collateral”);
and

 

NOW,
THEREFORE, in
consideration of the foregoing and for other good and valuable consideration, subject
to the terms and conditions of the Note, and any and all documents executed by Assignor
which evidence or secure same, the receipt and sufficiency of which are hereby
acknowledged, it is agreed as follows:

 

1.             Assignor does hereby grant a
continuing security interest in and to and hereby assigns, conveys and
transfers to CILCO all of Assignor’s right, title and interest in, to and under
the Collateral.

 

2.             Assignor shall at all times
faithfully and promptly discharge the obligations of Assignor under the Collateral.

 

3.             All distributions or refunds of any
kind, whether cash or in kind, and all other payments of money or property of
any sort whatsoever, and any other benefits inuring to Assignor by reason of or
relating to the Collateral, shall be paid and delivered directly to CILCO.  In the event that Assignor directly receives
any portion of such Collateral, Assignor agrees to pay and deliver to CILCO the
full amount of such Collateral (up to the amount of the then outstanding
principal and interest on this Note) within five (5) days of the receipt
of any such Collateral.

 

4.             Assignor agrees to execute any and
all documents and take any and all actions as may be necessary or required by CILCO
(in CILCO’s sole discretion) in order to perfect or maintain CILCO’s security
interest in the Collateral, or to effectuate the intent of this Assignment,
including but not limited to any power of attorney that may be required by the
IRS and/or the United States Treasury in order to

 

 

enable CILCO to directly
receive the Collateral.  In addition,
Assignor irrevocably authorizes CILCO at any time and from time to time while
this Assignment is in effect to file financing statements and amendments
thereto relating to the Collateral, without the signature of Assignor.  Further, Assignor agrees that it shall refrain
from taking any action that could reduce or delay the amount of the Collateral,
delay its payment or adversely affect CILCO’s ability to directly receive the
Collateral.

 

5.             Assignor represents and warrants to
CILCO that as of the date hereof: (i) to the best of its knowledge, the
value of the Collateral is approximately $5,500,000, (ii) except as set
forth herein and subject to the terms of that certain Subordination Agreement
by and between Wells Fargo Bank, National Association, Assignor and CILCO dated
of even date herewith, Assignor owns the Collateral free and clear from all
liens and other encumbrances thereon.

 

6.             All rights of CILCO under this
Assignment shall expire upon satisfaction in full of all of the obligations and
liabilities of Assignor to CILCO under the Obligations.

 

7.             Assignor agrees that CILCO (or its
successor, assign or designee) does not assume any of the obligations or duties
of Assignor under or with respect to the Collateral.  In no event shall CILCO have any liability
whatsoever for the performance of any obligations or duties of Assignor with
respect to the Collateral or the Tax Return.

 

8.             The exercise of any rights by CILCO
granted hereunder shall not satisfy or diminish any obligation or liability of Assignor
to CILCO in any way or limit or preclude the exercise of other rights and
remedies by CILCO until the Obligations are fully and finally repaid in full.

 

9.             Whenever any notice is required or
permitted by the terms of this Assignment, such notice shall be deemed given
when mailed by certified mail, return receipt requested, postage pre-paid to
the parties at their addresses set forth above.

 

10.           This Assignment shall be binding upon
and shall inure to the benefit of the respective heirs, executors,
representatives, successors and assigns of the parties hereto.

 

11.           This Assignment shall be governed by
and shall be construed in accordance with the laws of the State of Illinois.

 

Signature Page Follows

 

2

 

IN
WITNESS WHEREOF,
this Assignment has been executed by the parties as of the date first above
written.

 

 

	
   

  	
  MGP
  INGREDIENTS, INC.

  
	
   

  	
  f/k/a
  Midwest Grain
  Products, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Timothy W. Newkirk

  
	
   

  	
  Name:

  	
  Timothy
  W. Newkirk

  
	
   

  	
  Title:

  	
  President &
  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CENTRAL
  ILLINOIS LIGHT COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Stan El Ogden

  
	
   

  	
  Name:

  	
  Stan
  E. Ogden

  
	
   

  	
  TitleVice President

  

 

3Exhibit
4.2.3

 

WAIVER AGREEMENT

 

This
Agreement made as of July 20, 2009 among CLOUD L. CRAY, JR. TRUST under an
agreement dated October 25, 1983 (“Trust”),  MGP INGREDIENTS, INC.,  a Kansas Corporation (“MGP”) and CENTRAL
ILLINOIS LIGHT COMPANY, an Illinois Corporation 
(“CILCO”).

 

RECITALS:

 

A.                                   In connection
with transaction contemplated by a Restructuring Agreement of even date
herewith between MGP and CILCO, MGP has agreed to assign any proceeds or
refunds payable by the IRS to MGP pursuant to the filing of tax returns with
respect to MGP’s fiscal year ended July 1, 2007 (the “Refund”).

 

B.                                     Pursuant to a
Subordinated Secured Promissory Note (“Note”) made by MGP to Trust dated March 27,
2009, MGP has granted Trust a security interest in substantially all of MGP’s
personal property.  Trust, as a
significant stockholder and creditor of MGP, will benefit from the
Restructuring Agreement, and wishes to induce CILCO to enter into the
Restructuring Agreement.

 

NOW,
THEREFORE, FOR AND IN CONSIDERATION OF THE FOREGOING AND OTHER CONSIDERATION,
TRUST HEREBY AGREES AS FOLLOWS.

 

1.                                       Trust hereby
waives any interest in the Refund.

 

2.                                       Trust agrees
that the Company may file an amendment to the UCC-1 financing statements filed
to perfect Trust’s security interest in the collateral securing the Note to the
following effect :  “The Secured Party
disclaims any interest in income tax refunds or MGP Ingredients, Inc. and
subsidiaries for the year ended July 1, 2007.”

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year first above written.

 

	
   

  	
  CLOUD
  L. CRAY, JR., TRUST

  	
   

  
	
   

  	
  Under
  an agreement dated October 25, 1983

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Cloud L. Cray, Jr. TTEE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MGP
  INGREDIENTS, INC.,

  	
   

  
	
   

  	
  A
  Kansas corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Timothy W. Newkirk

  	
   

  
	
   

  	
   

  	
  President &
  CEO

  	
   

  

 

 

	
   

  	
  CENTRAL
  ILLINOIS LIGHT COMPANY

  	
   

  
	
   

  	
  An
  Illinois Corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ByExhibit 4.2.4

 

SUBORDINATION AGREEMENT

 

THIS
SUBORDINATION AGREEMENT (“Agreement”),
dated as of July 21, 2009, is made by CENTRAL ILLINOIS LIGHT COMPANY (the “Subordinated Creditor”), for the benefit of WELLS FARGO
BANK, NATIONAL ASSOCIATION (with its participants, successors and assigns, the “Senior Lender”), acting through its Wells Fargo Business
Credit operating division.

 

MGP
Ingredients, Inc., a Kansas corporation (the “Borrower”),
is now or hereafter may be indebted to the Senior Lender on account of loans or
the other extensions of credit or financial accommodations from the Senior
Lender to Borrower, or to any other person under the guaranty or endorsement of
Borrower.

 

The
Subordinated Creditor has entered into certain financial accommodations with
Borrower.

 

As
a condition to making any loan or extension of credit to Borrower, the Senior
Lender has required that the Subordinated Creditor (i) subordinate the
payment of the Subordinated Note and the Subordinated Creditor’s other
financial accommodations to the payment of any and all indebtedness of the
Borrower to the Senior Lender (except as otherwise provided herein) and (ii) disclaim
any interest or Liens in the Collateral which is not Subordinated Creditor
Collateral.  Assisting Borrower in obtaining
credit accommodations from the Senior Lender and subordinating his  interests pursuant to the terms of this Agreement are in
the Subordinated Creditor’s best interest.

 

ACCORDINGLY,
in consideration of the loans and other financial accommodations that have been
made and may hereafter be made by the Senior Lender for the benefit of the
Borrower, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Subordinated Creditor hereby
agrees as follows:

 

1.                                       Definitions. As used
herein, the following terms have the meanings set forth below:

 

“Borrower Default” means a Default or Event of Default as
defined in any agreement or instrument evidencing, governing, or issued in
connection with Senior Lender Indebtedness, including, but not limited to, the
Credit Agreement, or any default under or breach of any such agreement or
instrument.

 

“Collateral”
means all business assets of Borrower including all collateral now or hereafter
securing payment of the Senior Lender Indebtedness, including all proceeds
thereof.

 

 

“Credit Agreement” means that certain
Credit and Security Agreement dated on or about the date hereof, by and between
Borrower and the Senior Lender as the same may hereafter be amended,
supplemented or restated from time to time.

 

“Enforcement” shall mean for
Subordinated Creditor to make demand for payment or accelerate the Subordinated
Indebtedness, repossess any material amount of Collateral or commence the
judicial or non-judicial enforcement of any of the rights and remedies under
the Subordinated Note, Subordinated Indebtedness or any related agreements or
applicable law.  For the avoidance of
doubt, “Enforcement” shall specifically exclude any demand or action taken by
Subordinated Creditor to obtain or receive payments upon the sale of the Real
Estate Collateral.

 

“Enforcement Notice” shall mean a
written notice delivered, at a time when a Subordinated Indebtedness Default
has occurred and is continuing, by Subordinated Creditor to Senior Lender,
specifying the relevant Subordinated Indebtedness Default and stating the
current balance of the Subordinated Indebtedness.

 

“Lien” means any security interest,
mortgage, deed of trust, pledge, lien, charge, encumbrance, title retention
agreement or analogous instrument or device, including the interest of each
lessor under any capitalized lease and the interest of any bondsman under any
payment or performance bond, in, of or on any assets or properties of a Person,
whether now owned or hereafter acquired and whether arising by agreement or
operation of law.

 

“Real Estate Collateral” means that
certain real property owned by Borrower located at 1301 South Front Street in
Pekin, Il  61555-4065 and described on Exhibit A
attached hereto.

 

“Senior Lender Indebtedness” is used herein in its most
comprehensive sense and means any and all advances, debts, obligations and
liabilities of Borrower to the Senior Lender, heretofore, now or hereafter
made, incurred or created, whether voluntary or involuntary and however
arising, whether due or not due, absolute or contingent, liquidated or
unliquidated, determined or undetermined, including under any swap, derivative,
foreign exchange, hedge, deposit, treasury management or other similar
transaction or arrangement at any time entered into by the Borrower with the
Senior Lender, and whether the Borrower may be liable individually or jointly
with others, or whether recovery upon such Indebtedness may be or hereafter
becomes unenforceable.

 

“Subordinated
Creditor Collateral” means collectively, the Real Estate Collateral
and Tax Refund Collateral.

 

“Subordinated Indebtedness” means all obligations arising
under the Subordinated Note and each and every other debt, liability and
obligation of every type and description which the Borrower may now or at any
time hereafter owe to the Subordinated Creditor, whether such debt, liability
or obligation now exists or is hereafter created or incurred, and whether it is
or may be direct or indirect, due or to become due, 

 

2

 

absolute or contingent, primary or secondary, liquidated or
unliquidated, or joint, several or joint and several, with the exception of
Trade Payables Indebtedness.

 

“Subordinated Indebtedness Default” means a Default or Event
of Default as defined in any agreement or instrument evidencing, governing, or
issued in connection with Subordinated Indebtedness, including, but not limited
to, the Subordinated Note, or any default under or breach of any such agreement
or instrument.

 

“Subordinated Note” means the Borrower’s promissory note made
by the Borrower dated on or about the date hereof, payable to the order of the
Subordinated Creditor in the approximate original principal amount of
$11,614,197.19, together with all renewals, extensions and modifications
thereof and any note or notes issued in substitution therefore.

 

“Tax Refund Collateral” means all of Borrower’s right, title
and interest in and to any proceeds or refunds payable by the Internal Revenue
Service pursuant to the filed income tax return for Borrower’s fiscal year
ending July 1, 2007, and any and all amendments thereto.

 

“Trade Payable Indebtedness” means the trade payable
indebtedness owed by Borrower to Subordinated Creditor, whether such trade
payable debt now exists or is hereafter created or incurred, and whether it is
or may be direct or indirect, due or to become due, absolute or contingent,
primary or secondary, liquidated or unliquidated, or joint, several or joint
and several, which shall not include indebtedness evidenced by the Subordinated
Note.  For the avoidance of doubt and
without limiting the foregoing, “Trade Payable Indebtedness” shall include
amounts accruing after June 30, 2009 (i) for products or services
provided pursuant to the Gas Service Agreement dated September 1, 2006 by
and among Borrower, Subordinated Creditor and the other parties thereto, (ii) for
products or services provided pursuant to any successor agreement to that
certain Steam Heat Service Agreement dated December 16, 1993 by and among
Borrower, Subordinated Creditor and the other parties thereto and (iii) relating
to providing electric and natural gas commodity and/or delivery service.

 

2.                                       Subordination.

 

(a)                                  The
Subordinated Creditor hereby agrees that, except as otherwise provided herein,
the payment and performance of all of the Subordinated Indebtedness is hereby
expressly subordinated to the payment and performance in full of the Senior
Lender Indebtedness and regardless of any priority otherwise available to the
Subordinated Creditor by law or by agreement, the Senior Lender shall hold a
first priority Lien in the Collateral and the Subordinated Creditor hereby
disclaims any interest or Liens in the Collateral, except for the Subordinated
Creditor Collateral.  The Subordinated
Indebtedness shall continue to be subordinated to the Senior Lender
Indebtedness even if the Senior Lender Indebtedness is deemed unsecured,
under-secured, subordinated, avoided or disallowed under the United States
Bankruptcy Code or other applicable law.

 

3

 

(b)                                 Notwithstanding
anything contained herein to the contrary, until the earlier of (i) the
date that all of the Senior Lender Indebtedness has been indefeasibly paid and
performed in full and the Senior Lender has released its Lien in the Collateral
or (ii) the expiration of the Standstill Period (as hereinafter defined),
the Subordinated Creditor hereby disclaims any interest or Liens in the
Collateral other than the Subordinated Creditor Collateral.  The parties agree that the provisions of this
Section 2(b), are made in favor of and shall only inure to the
benefit of, only Senior Lender its participants, successors and assigns and to
no other persons.

 

(c)                                  Notwithstanding
anything contained herein to the contrary (i) the Senior Lender
acknowledges that the Subordinated Creditor does not subordinate its Lien in
the Subordinated Creditor Collateral and (ii) any Lien claimed in the
Subordinated Creditor Collateral by the Senior Lender, shall be and remain
fully subordinate for all purposes to the Lien of the Subordinated Creditor in
the Subordinated Creditor Collateral for all purposes whatsoever.  Notwithstanding anything in any documents
between Subordinated Creditor and Borrower to the contrary, the Subordinated
Creditor hereby consents to Senior Lender taking a Lien in the Real Estate
Collateral, provided that any such Lien shall be and remain fully subordinate
for all purposes to the Lien of the Subordinated Creditor in the Real Estate Collateral
for all purposes whatsoever.

 

3.                                       Payments.

 

(a)                                  Until all of
the Senior Lender Indebtedness has been indefeasibly paid and performed in full
and the Senior Lender has released its Lien in the Collateral, the Subordinated
Creditor shall not, without the Senior Lender’s prior written consent, demand,
receive or accept any payment (whether of principal, interest or otherwise)
from the Borrower in respect of the Subordinated Indebtedness, or exercise any
right of or permit any setoff in respect of the Subordinated Indebtedness except
that the Subordinated Creditor may, provided no Borrower Default has occurred
or would occur as a result of any such payments, accept scheduled, current (not
more than 30 days past due), non-accelerated payments (but not prepayments) of
principal and interest required to be paid under the Subordinated Note.

 

(b)                                 Notwithstanding
anything contained herein to the contrary, (i) the Subordinated Creditor
may receive payments from Borrower which are payments of Trade Payable Indebtedness
and (ii) the Subordinated Creditor may receive payments from Borrower
which are proceeds of the Subordinated Creditor Collateral.

 

4.                                       Receipt of
Prohibited Payments. If the Subordinated Creditor receives any payment
on the Subordinated Indebtedness that the Subordinated Creditor is not entitled
to receive under the provisions of this Agreement, the Subordinated Creditor
will hold the amount so received in trust for the Senior Lender and will
forthwith turn over such payment to the Senior Lender in the form received
(except for the endorsement of the Subordinated Creditor where necessary) for
application to then-existing Senior Lender Indebtedness (whether or not due),
in such manner of application as the Senior Lender may deem appropriate. If the
Subordinated Creditor exercises any right of setoff which the Subordinated
Creditor is not permitted to exercise under the provisions of this Agreement,
the Subordinated Creditor will promptly pay

 

4

 

over to the Senior Lender,
in immediately available funds, an amount equal to the amount of the claims or
obligations offset. If the Subordinated Creditor fails to make any endorsement
required under this Agreement, the Senior Lender, or any of its officers or employees
or agents on behalf of the Senior Lender, is hereby irrevocably appointed as
the attorney-in-fact (which appointment is coupled with an interest) for the
Subordinated Creditor to make such endorsement in the Subordinated Creditor’s
name.

 

5.                                       Action on
Subordinated Indebtedness. 
Unless and until the Senior Lender Indebtedness has been indefeasibly
paid and performed in full and the Senior Lender has released its Lien in the
Collateral:

 

(a)                                  The
Subordinated Creditor will not commence any action or proceeding against the
Borrower to recover all or any part of the Subordinated Indebtedness, or join
with any creditor (unless Senior Lender shall so join) in bringing any
proceeding against the Borrower under any bankruptcy, reorganization,
readjustment of debt, arrangement of debt receivership, liquidation or
insolvency law or statute of the federal or any state government; and

 

(b)                                 The
Subordinated Creditor will not commence any action or proceeding with respect
to the Collateral or against the Borrower, will not take possession of, sell or
dispose of, or otherwise deal with, the Collateral, and will not exercise or
enforce any other right or remedy which may be available to the Subordinated
Creditor against the Borrower or with respect to the Collateral.

 

(c)                                  Notwithstanding
anything contained herein to the contrary, the Subordinated Creditor shall be
permitted to commence an Enforcement against (i) the Real Estate
Collateral on the date that is sixty (60) days after an Enforcement Notice from
Subordinated Creditor has actually been received by Senior Lender, (ii) the
Tax Refund Collateral upon the occurrence of a Subordinated Indebtedness
Default and (iii) the Borrower with respect to Trade Payable Indebtedness
at any time.  Notwithstanding anything
herein to the contrary, on the date that is three hundred and sixty five days
(365) days after delivery of an Enforcement Notice to Subordinated Creditor
pursuant to the terms of Section 12 hereof (the “Standstill
Period”), all obligations of Subordinated Creditor under this
Agreement shall terminate and expire.

 

6.                                       Action
Concerning Collateral and Restrictions on Liens.

 

(a)                                  Subordinated
Creditor represents, warrants, agrees, promises and covenants to Senior Lender
that unless and until all of the Senior Lender Indebtedness has been
indefeasibly paid and performed in full and the Senior Lender has released its
Lien in the Collateral the (i) Subordinated Creditor will not modify,
amend, restate or otherwise change the Subordinated Note or any documents,
agreements or instruments representing or related to any Subordinated
Indebtedness; (ii) except for the Subordinated Creditor Collateral, the
Subordinated Creditor holds no Lien and will hold no Lien on the Collateral or
any other property or assets of Borrower; (iii) there are currently no UCC
or similar filings in connection with any indebtedness from Borrower to
Subordinated Creditor, and will not be any such filings except filings which
specifically describe the

 

5

 

Subordinated
Creditor Collateral; and (iv) except for Liens relating to the
Subordinated Creditor Collateral, should any Lien be taken or received by
Subordinated Creditor in respect of the Collateral or any other property or
assets of Borrower, or should any UCC or similar filing against Borrower be
made by or on behalf of Subordinated Creditor, Senior Lender may, in its sole
and absolute discretion, terminate, release, cancel (or take assignment thereof
for its own benefit) any such Liens or filings, and Subordinated Creditor
hereby appoints Senior Lender as its attorney-in-fact for such purposes.

 

(b)                                 Senior Lender
may take possession of, sell, dispose of, and otherwise deal with all or any
part of the Collateral,
except for the Subordinated Creditor Collateral, and may enforce any
right or remedy available to it with respect to the Borrower or the Collateral
(except for the Subordinated Creditor Collateral), all without notice to or
consent of the Subordinated Creditor except as specifically required by applicable
law.

 

(c)                                  The Senior
Lender shall have no duty to preserve, protect, care for, insure, take
possession of, collect, dispose of, or otherwise realize upon any of the
Collateral or any other property or assets of the Borrower, and in no event
shall the Senior Lender be deemed the Subordinated Creditor’s agent with
respect to the Collateral. All proceeds received by the Senior Lender with
respect to any Collateral may be applied, first, to pay or reimburse the Senior
Lender for all costs and expenses (including reasonable attorneys’ fees)
incurred by the Senior Lender in connection with the collection of such
proceeds, and, second, to any Senior Lender Indebtedness secured by the Senior
Lender’s Lien in that Collateral in any order that it may choose.

 

(d)                                 Nothing
contained herein will prevent Borrower and Senior Lender from amending,
modifying, restating and otherwise dealing with the Senior Lender Indebtedness
in any manner Borrower and Senior Lender deem necessary and/or desirable
without notice to or consent of the Subordinated Creditor (the “Modified Senior Lender Indebtedness”).  This Agreement shall remain fully applicable
to such Modified Senior Lender Indebtedness and the Modified Senior Lender
Indebtedness will be deemed the “Senior Lender Indebtedness” for all purposes
hereunder.

 

7.                                       Bankruptcy and
Insolvency. In the event of any receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization or
arrangement with creditors, whether or not pursuant to bankruptcy law, the sale
of all or substantially all of the assets of the Borrower, dissolution,
liquidation or any other marshalling of the assets or liabilities of the
Borrower, the Subordinated Creditor will file all claims, proofs of claim or
other instruments of similar character necessary to enforce the obligations of
the Borrower in respect of the Subordinated Indebtedness and will hold in trust
for the Senior Lender and promptly pay over to the Senior Lender in the form
received (except for the endorsement of the Subordinated Creditor where
necessary) for application to the then-existing Senior Lender Indebtedness, any
and all moneys, dividends or other assets received in any such proceedings on
account of the Subordinated Indebtedness, unless and until the Senior Lender
Indebtedness has been paid in full and the Senior Lender’s Lien in the
Collateral has been terminated, except for proceeds from (i) the
Subordinated Creditor Collateral, (ii) the Collateral after the expiration
of the Standstill Period and (iii) debt relating to Trade Payables
Indebtedness.  If the Subordinated
Creditor shall

 

6

 

fail to take any such
action, the Senior Lender, as attorney-in-fact for the Subordinated Creditor,
may take such action on the Subordinated Creditor’s behalf. The Subordinated
Creditor hereby irrevocably appoints the Senior Lender, or any of its officers
or employees on behalf of the Senior Lender, as the attorney-in-fact for the
Subordinated Creditor (which appointment is coupled with an interest) with the
power but not the duty to demand, sue for, collect and receive any and all such
moneys, dividends or other assets and give acquittance therefor and to file any
claim, proof of claim or other instrument of similar character, to vote claims
comprising Subordinated Indebtedness to accept or reject any plan of partial or
complete liquidation, reorganization, arrangement, composition or extension and
to take such other action in the Senior Lender’s own name or in the name of the
Subordinated Creditor as the Senior Lender may deem necessary or advisable for
the enforcement of the agreements contained herein; and the Subordinated
Creditor will execute and deliver to the Senior Lender such other and further
powers-of-attorney or instruments as the Senior Lender may request in order to
accomplish the foregoing. If the Senior Lender desires to permit the use of
cash collateral or to provide post-petition financing to the Borrower, the
Subordinated Creditor shall not object to the same or assert that its interests
are not being adequately protected.

 

8.                                       Restrictive
Legend; Transfer of Subordinated Indebtedness; Amendment. The
Subordinated Creditor will cause the Subordinated Note and all other notes,
bonds, debentures or other instruments evidencing the Subordinated Indebtedness
or any part thereof to contain a specific statement thereon to the effect that
the indebtedness thereby evidenced is subject to the provisions of this
Agreement, and the Subordinated Creditor will mark its books conspicuously to
evidence the subordination effected hereby. 
Attached hereto is a true and correct copy of the Subordinated Note
bearing such legend.

 

9.                                       Continuing
Effect. This Agreement shall constitute a continuing agreement of
subordination, and the Senior Lender may, without notice to or consent by the
Subordinated Creditor, modify any term of the Senior Lender Indebtedness in
reliance upon this Agreement. Without limiting the generality of the foregoing,
the Senior Lender may, at any time and from time to time, without the consent
of or notice to the Subordinated Creditor and without incurring responsibility
to the Subordinated Creditor or impairing or releasing any of the Senior Lender’s
rights or any of the Subordinated Creditor’s obligations hereunder:

 

(a)                                  change the
interest rate or change the amount of payment or extend the time for payment or
renew or otherwise alter the terms of any Senior Lender Indebtedness or any
instrument evidencing the same in any manner;

 

(b)                                 sell, exchange,
release or otherwise deal with any property at any time securing payment of the
Senior Lender Indebtedness or any part thereof;

 

(c)                                  release anyone
liable in any manner for the payment or collection of the Senior Lender
Indebtedness or any part thereof;

 

(d)                                 exercise or refrain
from exercising any right against the Borrower or any other person (including
the Subordinated Creditor); and

 

7

 

(e)                                  apply any sums
received by the Senior Lender, by whomsoever paid and however realized, to the
Senior Lender Indebtedness in such manner as the Senior Lender shall deem
appropriate.

 

10.                                 No Commitment. None of the
provisions of this Agreement shall be deemed or construed to constitute or
imply any commitment or obligation on the part of the Senior Lender to make any
future loans or other extensions of credit or financial accommodations to the
Borrower.

 

11.                                 Waiver and
Consent.  Senior Lender shall have no
obligation to the Subordinated Creditor with respect to the Collateral or the
Senior Lender Indebtedness, except for the Subordinated Creditor Collateral and
the Trade Payables Indebtedness.  Senior
Lender may (a) exercise collection rights, (b) take possession of,
sell or dispose of, and otherwise deal with, the Collateral, (c) in Senior
Lender’s name, the Subordinated Creditor’s name or in Borrower’s name, demand,
sue for, collect or receive any money or property at any time payable or
receivable on account of, or securing, any right to payment, or grant any
extension to, make any compromise or settlement with or otherwise agree to
waive, modify, amend or change the obligations (including collateral
obligations) of any account debtor or other obligor of the Debtor; (d) prosecute,
settle and receive proceeds on any insurance claims relating to the Collateral,
and (e) exercise and enforce any right or remedy available to Senior
Lender with respect to the Collateral, whether available before or after the
occurrence of any default; all without notice to or consent by anyone except as
specifically required by law. Senior Lender may apply the proceeds of the
Collateral in any order of application, and may remit or release such proceeds
or any other sums or amounts to the Borrower without being obligated to assure
that any such proceeds or sums are applied to the satisfaction of the
Subordinated Creditor’s subordinated security interest in any Collateral,
except as required by law. The Subordinated Creditor hereby waives any and all
right to require the marshalling of assets in connection with the exercise of
any of the remedies permitted by applicable law or agreement.

 

12.                                 Notice. All notices
and other communications hereunder shall be in writing and shall be (i) personally
delivered, (ii) transmitted by registered mail, postage prepaid, or (iii) transmitted
by telecopy, in each case addressed to the party to whom notice is being given
at its address as set forth below:

 

If
to the Senior Lender:

 

Wells
Fargo Bank, National Association

MAC
N9312-040

109
South 7th Street, 4th Floor

Minneapolis,
MN 55402

Attention:  Becky A. Koehler

Telecopier:  (612) 341-2472

 

8

 

If to the Subordinated Creditor:

 

Central
Illinois Light Company

300
Liberty Street

Peoria,
Illinois 61602

Attention:
Stan E. Ogden , Vice President

Telecopier: (309) 677-5016

 

with a copy to:

Daniel J. Godar

Armstrong Teasdale LLP

One Metropolitan Square

Suite 2600

St. Louis, MO 
63102-2740

Telecopy: 314-612-2249

 

or
at such other address as may hereafter be designated in writing by that party.
All such notices or other communications shall be deemed to have been given on (i) the
date received if delivered personally, (ii) the date of posting if
delivered by mail, or (iii) the date of transmission if delivered by
telecopy.

 

13.                                 Conflict in
Agreements. If the subordination provisions of any instrument
evidencing Subordinated Indebtedness conflict with the terms of this Agreement,
the terms of this Agreement shall govern the relationship between the Senior
Lender and the Subordinated Creditor.

 

14.                                 No Waiver. No waiver
shall be deemed to be made by the Senior Lender of any of its rights hereunder
unless the same shall be in writing signed on behalf of the Senior Lender, and
each such waiver, if any, shall be a waiver only with respect to the specific matter
or matters to which the waiver relates and shall in no way impair the rights of
the Senior Lender or the obligations of the Subordinated Creditor to the Senior
Lender in any other respect at any time.

 

15.                                 Binding Effect;
Acceptance. This Agreement shall be binding upon the
Subordinated Creditor and the Subordinated Creditor’s heirs, legal
representatives, successors and assigns and shall inure to the benefit of the
Senior Lender and its participants, successors and assigns irrespective of
whether this or any similar agreement is executed by any other creditor of the
Borrower. Notice of acceptance by the Senior Lender of this Agreement or of
reliance by the Senior Lender upon this Agreement is hereby waived by the
Subordinated Creditor.

 

16.                                 Miscellaneous. The paragraph
headings herein are included for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose. This Agreement may
be executed in any number of counterparts, each of which shall be an original,
but all of which together shall constitute one instrument.

 

17.                                 Governing Law;
Consent to Jurisdiction and Venue; Waiver of Jury Trial. This
Agreement shall be governed by and construed in accordance with the substantive
laws (other than conflict laws) of the State of Minnesota.  Each party consents to the personal 

 

9

 

jurisdiction of the state
and federal courts located in the State of Minnesota in connection with any
controversy related to this Agreement, waives any argument that venue in any
such forum is not convenient, and agrees that any litigation initiated by any
of them in connection with this Agreement may be venued in either the state or
federal courts located in Hennepin County, Minnesota.  THE PARTIES WAIVE ANY
RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR PERTAINING TO
THIS AGREEMENT.

 

18.                             Interpretation.  As used in this Agreement, unless the context
otherwise requires, the term “herein” shall mean “in this Agreement”.

 

19.                             Electronic
Signatures.  The
exchange of copies of this waiver and of signature pages by PDF through
email or facsimile transmission shall constitute effective execution and
delivery of this Agreement as to the parties and may be used in lieu of the
original Agreement for all purposes. 
Electronic signatures of the parties transmitted as set forth herein
shall deemed to be original signatures for all purposes.

 

[Signature Page Follows]

 

10

 

IN
WITNESS WHEREOF, the Subordinated Creditor has executed this Agreement as of
the date and year first above-written.

 

	
   

  	
  CENTRAL
  ILLINOIS LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Stan E. Ogden

  
	
   

  	
  Name:

  	
  Stan
  E. Ogden

  
	
   

  	
  Its:

  	
  Vice President

  

 

11

 

Acknowledgment by Borrower

 

The
undersigned, being the Borrower referred to in the foregoing Agreement, hereby (i) acknowledges
receipt of a copy thereof, (ii) agrees to all of the terms and provisions
thereof, (iii) agrees to and with the Senior Lender that it shall make no
payment on the Subordinated Indebtedness that the Subordinated Creditor would
not be entitled to receive under the provisions of the Agreement, (iv) agrees
that any such payment will constitute a default under the Senior Lender
Indebtedness, and (v) agrees to mark its books conspicuously to evidence
the subordination of the Subordinated Indebtedness effected hereby.

 

	
   

  	
  MGP
  INGREDIENTS, INC.

  
	
   

  	
  a
  Kansas corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Timothy W. Newkirk

  
	
   

  	
  Name:

  	
  Timothy
  W. Newkirk

  
	
   

  	
  Its:

  	
  President & CEO

  

 

 

Exhibit A

 

Legal Description of Real Estate Collateral

 

(Attached)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]