Document:

Exhibit 4.4.2

 

	
   

  	
  200900008285

  
	
   

  	
  Filed
  for Record in

  
	
   

  	
  TAZEWELL COUNTY, IL

  
	
   

  	
  ROBERT
  LUTZ

  
	
   

  	
  04-16-2009
  At 02:38 pm.

  
	
   

  	
  MORTGAGE

  	
  43.75

  
	
   

  	
  RHSP
  Surcharge 

  	
  10.00

  

 

Space Above This Line For Recording Data

 

This
instrument was prepared by
                                                                 

When
recorded return to Loan Department, Exchange National Bank & Trust
Co., 600 Commercial Street, PO Box 189, Atchison, KS  66002

 

MORTGAGE

 

(With Future Advance Clause)

 

DATE
AND PARTIES.  The date of
this Mortgage (Security Instrument) is APRIL 15, 2009.  The parties and their addresses are:

 

MORTGAGOR:

MGP INGREDIENTS, INC

A Kansas Corporation

P O BOX 130

ATCHISON, KS  66002

 

LENDER:

EXCHANGE NATIONAL SANK & TRUST CO.

Organized and existing under the laws of Kansas

600 COMMERCIAL ST

ATCHISON, Kansas  66002

 

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

 

SEE EXHIBIT A

 

The property is located in
Tazewell County at , PEKIN, Illinois.

 

Together with all rights,
easements, appurtenances, royalties, mineral rights, oil and gas rights, all
water and riparian rights, wells, ditches and water stock, crops, timber, all
diversion payments or third party payments made to crop producers 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
(all referred to as Property).  This Security
Instrument will remain in effect until the Secured Debts and all underlying
agreements have been terminated in writing by Lender.

 

	
  MGP INGREDIENTS, INC

  Illinois Mortgage

  KS/4CHRISTIN00000000000111049041009N

  	
   

  	
  © 1996 Bankers Systems, Inc., St. Cloud, MN 

  	
   

  	
  Initials _______

  

 

1

 

2.              MAXIMUM OBLIGATION LIMIT.  The total principal
amount secured by this Security Instrument at any one time will not exceed
$2,800,000.00.  This limitation of amount
does not include interest, attorneys’ fees 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.

 

3.              SECURED DEBTS AND FUTURE ADVANCES.  The term “Secured
Debts” includes and this Security Instrument will secure each of the following:

 

A.            Specific Debts.  The following debts
and all extensions, renewals, refinancings, modifications and
replacements.  A promissory note or other
agreement, dated April 15, 2009, from Mortgagor to Lender, with a loan
amount of $2,800,000.00, with an interest rate of 7.0 percent per year and
maturing on September 3, 2009.  One
or more of the debts secured by this Security Instrument contains a future
advance provision.

 

B.            All Debts.  All present and future debts from Mortgagor
to Lender, even if this Security Instrument is not specifically referenced, or
if the future debt is unrelated to or of a different type than this debt.  If more than one person signs this Security
Instrument, each agrees that it will secure debts incurred either individually
or with others who may not sign this Security Instrument.  Nothing in this Security Instrument
constitutes a commitment to make additional or future loans or advances.  Any such commitment must be in writing.  In the event that Lender fails to provide any
required notice of the right of rescission, Lender waives any subsequent
security interest in the Mortgagor’s principal dwelling that is created by this
Security Instrument.  This Security
Instrument will not secure any debt for which a non-possessory, non-purchase
money security interest is created in “household goods” in connection with a “consumer
loan,” as those terms are defined by federal law governing unfair and deceptive
credit practices.  This Security Instrument
will not secure any debt for which a security interest is created in “margin
stock” and Lender does not obtain a “statement of purpose,” as defined and
required by federal law governing securities.

 

C.            Future Advances.  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
executed by Mortgagor in favor of Lender after this Security Instrument whether
or not this Security Instrument is specifically referenced, and whether or not
the purpose of the future advances or future obligations is related to the
purpose of the Secured Debts.  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.  In the event that Lender fails to provide any
required notice of the right of rescission, Lender waives any subsequent
security interest in the Mortgagor’s principal dwelling that is created by this
Security Instrument.

 

D.            Sums Advanced.  All sums advanced
and expenses incurred by Lender under the terms of this Security Instrument.

 

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

 

5.              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.

 

Initials _______

 

2

 

6.              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.

 

7.              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.

 

8.              TRANSFER OF AN INTEREST IN THE MORTGAGOR.  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.

 

9.              WARRANTIES AND REPRESENTATIONS.  Mortgagor makes to
Lender the following warranties and representations which will continue as long
as this Security Instrument is in effect:

 

A.            Power.  Mortgagor is duly organized, and validly
existing and in good standing in all jurisdictions in which Mortgagor
operates.  Mortgagor has the power and
authority to enter into this transaction and to carry on Mortgagor’s business
or activity as it is now being conducted and, as applicable, is qualified to do
so in each jurisdiction in which Mortgagor operates.

 

B.            Authority.  The execution, delivery and performance of
this Security Instrument and the obligation evidenced by this Security
Instrument are within Mortgagor’s powers, have been duly authorized, have
received all necessary governmental approval, will not violate any provision of
law, or order of court or governmental agency, and will not violate any
agreement to which Mortgagor is a party or to which Mortgagor is or any of
Mortgagor’s property is subject.

 

C.            Name and Place of Business.  Other than
previously disclosed in writing to Lender, Mortgagor has not changed Mortgagor’s
name or principal place of business within the last 10 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 Mortgagor’s existing name, trade names and
franchises.

 

10.       PROPERTY CONDITION, ALTERATIONS AND
INSPECTION.  Mortgagor will keep the Property in good
condition and make all repairs that are reasonably necessary.  Mortgagor will 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 will 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 will give Mortgagor notice at the time of or before an inspection
specifying a reasonable purpose for the inspection.  Any inspection of the Property will be
entirely for Lender’s benefit and Mortgagor will in no way rely on Lender’s
inspection.

 

Initials _______

 

3

 

11.       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 will 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.

 

12.       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.

 

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

 

A.            Payments.  Mortgagor fails to make a payment in full
when due.

 

B.            Insolvency or Bankruptcy.  The death,
dissolution or insolvency of, appointment of a receiver by or on behalf of,
application of any debtor relief law, the assignment for the benefit of
creditors by or on behalf of, the voluntary or involuntary termination of
existence by, or the commencement of any proceeding under any present or future
federal or state insolvency, bankruptcy, reorganization, composition or debtor
relief law by or against Mortgagor, Borrower, or any co-signer, endorser,
surety or guarantor of this Security Instrument or any other obligations
Borrower has with Lender.

 

Initials _______

 

4

 

C.            Business Termination.  Mortgagor merges,
dissolves, reorganizes, ends its business or existence, or a partner or
majority owner dies or is declared legally incompetent.

 

D.            Failure to Perform.  Mortgagor fails to
perform any condition or to keep any promise or covenant of this Security
Instrument.

 

E.              Other Documents.  A default occurs
under the terms of any other document relating to the Secured Debts.

 

F.              Other Agreements.  Mortgagor is in
default on any other debt or agreement Mortgagor has with Lender.

 

G.            Misrepresentation.  Mortgagor makes any
verbal or written statement or provides any financial information that is
untrue, inaccurate, or conceals a material fact at the time it is made or
provided.

 

H.            Judgment.  Mortgagor fails to satisfy or appeal any
judgment against Mortgagor.

 

I.                 Forfeiture.  The Property is used in a manner or for a
purpose that threatens confiscation by a legal authority.

 

J.              Name Change.  Mortgagor changes Mortgagor’s name or assumes
an additional name without notifying Lender before making such a change.

 

K.            Property Transfer.  Mortgagor transfers
all or a substantial part of Mortgagor’s money or property.  This condition of default, as it relates to
the transfer of the Property, is subject to the restrictions contained in the
DUE ON SALE section.

 

L.             Property Value.  Lender determines in
good faith that the value of the Property has declined or is impaired.

 

M.          Material Change.  Without first
notifying Lender, there is a material change in Mortgagor’s business, including
ownership, management, and financial conditions.

 

N.            Insecurity.  Lender determines in good faith that a
material adverse change has occurred in Mortgagor’s financial condition from
the conditions set forth in Mortgagor’s most recent financial statement before
the date of this Security Instrument or that the prospect for payment or
performance of the Secured Debts is impaired for any reason.

 

14.       REMEDIES.  On or after default, Lender may use any and
all remedies Lender has under state or federal law or in any document relating
to the Secured Debts.  Any amounts
advanced on Mortgagor’s behalf will be immediately due and may be added to the
balance owing under the Secured Debts. 
Lender may make a claim for any and all insurance benefits or refunds
that may be available on Mortgagor’s default.

 

Subject to any right to
cure, required time schedules or any other notice rights Mortgagor may have
under federal and state law, Lender may make all or any part of the amount
owing by the terms of the Secured Debts immediately due and foreclose this
Security Instrument in a manner provided by law upon the occurrence of a
default or anytime thereafter.

 

Upon default, Lender will
have the right, without declaring the whole indebtedness due and payable, to
foreclose against all or any part of the Property and will have the right to
possession provided by law.  This
Security Instrument will continue as a lien on any part of the Property not
sold on foreclosure.

 

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 Debts after the balance is due or is
accelerated or after foreclosure proceedings are filed will not constitute a
waiver of Lender’s right to require full and complete cure of any existing
default.  By not exercising any remedy,
Lender does not waive Lender’s right to later consider the event a default if
it continues or happens again.

 

15.       COLLECTION EXPENSES AND ATTORNEYS’ FEES.  On or after Default,
to the extent permitted by law, Mortgagor agrees to pay all expenses of
collection, enforcement or protection of Lender’s rights and remedies under
this Security Instrument or any other document relating to the Secured
Debts.  Mortgagor agrees to pay expenses
for Lender to inspect and preserve the Property and for any recordation costs
of releasing the Property from this Security Instrument.  Expenses include reasonable attorneys’
fees.  These expenses are due and payable
immediately.  If not paid immediately,
these expenses will bear interest from the date of payment until paid in full
at the highest interest rate in effect as provided for in the terms of the
Secured Debts.  In addition, to the
extent permitted by the United 

 

Initials _______

 

5

 

States
Bankruptcy Code, Mortgagor agrees to pay the reasonable attorneys’ fees
incurred by Lender to protect Lender’s rights and interests in connection with
any bankruptcy proceedings initiated by or against Mortgagor.

 

16.       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 substance,” “hazardous
waste,” “hazardous substance,” or “regulated substance” under any Environmental
Law.

 

Mortgagor represents,
warrants and agrees that:

 

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.

 

E.              Except as previously disclosed and acknowledged in writing
to Lender, Mortgagor and every tenant have been, are and will 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 

 

Initials _______

 

6

 

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
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 will 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.

 

17.       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 will 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.

 

18.       INSURANCE.  Mortgagor agrees to keep the Property insured
against the risks reasonably associated with the Property.  Mortgagor will maintain this insurance in the
amounts Lender requires.  This insurance
will last until the Property is released from this Security Instrument.  What Lender requires pursuant to the
preceding two sentences can change during the term of the Secured Debts.  Mortgagor may choose the insurance company,
subject to Lender’s approval, which will not be unreasonably withheld.

 

All insurance policies and
renewals will include a standard “mortgage clause” and, where applicable, “loss
payee clause.”  If required by Lender,
Mortgagor agrees to maintain comprehensive general liability insurance and
rental loss or business interruption insurance in amounts and under policies
acceptable to Lender.  The comprehensive
general liability insurance must name Lender as an additional insured.  The rental loss or business interruption
insurance must be 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).

 

Mortgagor will give Lender
and the insurance company immediate notice of any loss.  All insurance proceeds will be applied to
restoration or repair of the Property or to the Secured Debts, at Lender’s
option.  If Lender acquires the Property
in damaged condition, Mortgagor’s rights to any insurance policies and proceeds
will pass to Lender to the extent of the Secured Debts.

 

Mortgagor will immediately
notify Lender of cancellation or termination of insurance.  If Mortgagor fails to keep the Property
insured, Lender may obtain insurance to protect Lender’s interest in the
Property and Mortgagor will pay for the insurance on Lender’s demand.  Lender may demand that Mortgagor pay for the
insurance all at once, or Lender may add the insurance premiums to the balance
of the Secured Debts and charge interest on it at the rate that applies to the
Secured Debts.  This insurance may
include coverages not originally required of Mortgagor, may be written by a
company other than one Mortgagor would choose, and may be written at a higher
rate than Mortgagor could obtain if Mortgagor purchased the insurance.  Mortgagor acknowledges and agrees that Lender
or one of Lender’s affiliates may receive commissions on the purchase of this
insurance.

 

19.       ESCROW FOR TAXES AND INSURANCE.  Mortgagor will not
be required to pay to Lender funds for taxes and insurance in escrow.

 

20.       CO-SIGNERS.  If Mortgagor signs this Security Instrument
but is not otherwise obligated to pay the Secured Debts, Mortgagor does so only
to mortgage Mortgagor’s interest in the Property to secure payment of the
Secured Debts and Mortgagor does not agree by signing this Security Instrument
to be personally liable on the Secured Debts. 
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.

 

Initials _______

 

7

 

21.       WAIVERS.  Except to the extent prohibited by law,
Mortgagor waives all homestead exemption, redemption, reinstatement and
appraisement rights relating to the Property.

 

22.       APPLICABLE LAW.  This Security
Instrument is governed by the laws of Kansas, the United States of America, and
to the extent required, by the laws of the jurisdiction where the Property is
located, except to the extent such state laws are preempted by federal law.

 

23.       JOINT AND INDIVIDUAL LIABILITY AND
SUCCESSORS.  Each Mortgagor’s obligations under this
Security Instrument are independent of the obligations of any other
Mortgagor.  Lender may sue each Mortgagor
individually or together with any other Mortgagor.  Lender may release any part of the Property
and Mortgagor will still be obligated under this Security Instrument for the
remaining Property.  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 will bind and
benefit the successors and assigns of Lender and Mortgagor.

 

24.       AMENDMENT, INTEGRATION AND SEVERABILITY.  This Security
Instrument may not be amended or modified by oral agreement.  No amendment or modification of this Security
Instrument is effective unless made in writing and executed by Mortgagor and
Lender.  This Security Instrument and any
other documents relating to the Secured Debts are the complete and final
expression of the agreement.  If any
provision of this Security Instrument is unenforceable, then the unenforceable
provision will be severed and the remaining provisions will still be
enforceable.

 

25.       INTERPRETATION.  Whenever used, the
singular includes the plural and the plural includes the singular.  The section headings are for convenience only
and are not to be used to interpret or define the terms of this Security
Instrument.

 

26.       NOTICE, FINANCIAL REPORTS, ADDITIONAL
DOCUMENTS AND RECORDING TAXES.  Unless otherwise required by law, any notice
will be given by delivering it or mailing it by first class mail to the
appropriate party’s address listed in the DATE AND PARTIES section, or to any
other address designated in writing. 
Notice to one Mortgagor will be deemed to be notice to all
Mortgagors.  Mortgagor will inform Lender
in writing of any change in Mortgagor’s name, address or other application
information.  Mortgagor will provide
Lender any financial statements or information Lender requests.  All financial statements and information
Mortgagor gives Lender will be correct and complete.  Mortgagor agrees to pay all expenses, charges
and taxes in connection with the preparation and recording of this Security
Instrument.  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 to confirm Lender’s lien status on any
Property, and Mortgagor agrees to pay all expenses, charges and taxes in
connection with the preparation and recording thereof.  Time is of the essence.

 

27.       WAIVER OF JURY TRIAL.  All of the parties to this Security Instrument
knowingly and intentionally, irrevocably and unconditionally, waive any and all
right to a trial by jury in any litigation arising out of or concerning this
Security Instrument or any other documents relating to the Secured Debts or
related obligation.  All of these parties
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.

 

Initials _______

 

8

 

SIGNATURES.  By signing, Mortgagor agrees to the terms and
covenants contained in this Security Instrument.  Mortgagor also acknowledges receipt of a copy
of this Security Instrument.

 

	
  MORTGAGOR:

  	
   

  
	
   

  	
   

  
	
  MGP
  INGREDIENTS, INC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By/s/ Timothy W. Newkirk

  	
   

  
	
   

  	
  TIMOTHY W NEWKIRK, PRESIDENT & CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  LENDER:

  	
   

  
	
   

  	
   

  
	
  Exchange
  National Bank & Trust Co.

  	
   

  
	
   

  	
   

  
	
   

  	
  By /s/ Mark Windsor

  	
   

  
	
   

  	
  Mark Windsor, President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

ACKNOWLEDGMENT.

 

(Business
or Entity)

 

Timothy
W. Newkirk, President & CEO OF MGP Ing., Inc. OF Atchison, KS ss.

 

This instrument was
acknowledged before me this 15th day of April, 2009 by TIMOTHY W NEWKIRK -
PRESIDENT & CEO of MGP INGREDIENTS, INC a Kansas corporation, on
behalf of the corporation.

 

 

	
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Initials _______

 

9

 

(Lender
Acknowledgment)

 

Mark
Windsor, President OF Exchange Natl. Bank & Trust Co. OF Atchison, KS ss.

 

This instrument was
acknowledged before me this 15th day of April, 2009 by Mark Windsor — President
of Exchange National Bank & Trust Co., a corporation, on behalf of the
corporation.

 

 

	
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Initials _______

 

10

 

Exhibit “A”

 

Real
property in the County of Tazewell, State of Illinois, described as follows:

 

Tract
I:

 

A
part of the Northeast Quarter of Fractional Section 9, and a part of Lots
6 and 8 in the Southeast Quarter of Fractional Section 4, said Lots 6 and
8 being shown on plat recorded on page 57 of Plat Book “B”, in the
Recorder’s Office of Tazewell County, Illinois, all being in Township 24 North,
Range 5 West of the Third Principal Meridian, Tazewell County, Illinois, and
more particularly described as follows:

 

Commencing
at the Northeast corner of said Northeast Quarter of Fractional Section 9;
thence South 89 degrees 29 minutes 14 seconds West, along the North line of
said Fractional Section 9, a distance of 1,629.48 feet to the place of
beginning; thence from said place of beginning South 20 degrees 05 minutes 14
seconds West a distance of 13.41 feet; thence South 86 degrees 48 minutes 22
seconds East a distance of 267.42 feet; thence South 00 degrees 56 minutes 03
seconds West a distance of 159.82 feet to the North line of The Quaker Oats
Company by deed recorded in Book 2045, page 72, of the Tazewell County
Recorder’s Office; thence South 89 degrees 27 minutes 16 seconds West along
said North line a distance of 104.33 feet; thence South 00 degrees 56 minutes
03 seconds West along the West line of The Quaker Oats Company property as
described in aforementioned deed, a distance of 253.00 feet to the South line
of The American Distilling Company property; thence South 89 degrees 27 minutes
16 seconds West along the South line of The American Distilling property, a
distance of 850.76 feet to the Southeast corner of a parcel conveyed by The
American Distilling Company to Pekin River and Warehouse Terminal, Inc. by
deed recorded in Book 2351, page 208, of the Tazewell County Recorder’s
Office; thence North 25 degrees 40 minutes 22 seconds West along Easterly line
of said parcel, a distance of 371.70 feet, thence North 00 degrees 02 minutes
54 seconds West along Easterly line of said parcel, a distance of 106.63 feet
to the South line of said Fractional Section 4; thence continuing North 00
degrees 02 minutes 54 seconds along Easterly line of said parcel 77.64 feet to
the Northerly corner of Pekin River and Warehouse Terminal Inc. property, and
also being a point on the Northwesterly line of Lot 8 as recorded in Plat Book “B”,
page 57, of the Tazewell County Recorder’s Office; thence North 46 degrees
59 minutes 11 seconds East along the Northwesterly line, of said Lot 8 a
distance of 1,110.92 feet; thence South 43 degrees 00 minutes 54 seconds East a
distance of 280.47 feet; thence South 42 degrees 00 minutes 08 seconds West, a
distance of 188.94 feet; thence South 19 degrees 51 minutes 12 seconds West, a
distance of 276.07 feet; thence South 69 degrees 54 minutes 46 seconds East, a
distance of 148.90 feet; thence South 20 degrees 05 minutes 14 seconds West, a
distance of 182.59 feet to the place of beginning; situate, lying and being in
the County of Tazewell and State of Illinois.

 

Initials _______

 

11

 

Tract
II:

 

A
part of the Northeast Quarter of Fractional Section 9, and a part of Lots
6 and 8 in the Southeast Quarter of Fractional Section 4, said Lots 6 and
8 being shown on plat recorded in page 57 of Plat Book “B” in the Recorder’s
Office of Tazewell County, Illinois, all being in Township 24 North, Range 5
West of the Third Principal Meridian, Tazewell County, Illinois and more
particularly described as follows:

 

Commencing
at the Southeast corner of the Southeast Quarter of said Fractional Section 4;
thence South 89 degrees 29 minutes 14 seconds West, along the South line of the
Southeast Quarter of said Fractional Section 4, a distance of 1,020.92
feet to a concrete monument being the Place of Beginning for the Tract herein
being described; thence North 37 degrees 03 minutes 04 seconds East a distance
of 1,013.11 feet; thence North 57 degrees 55 minutes West a distance of 292.65
feet to the Northwesterly right-of-way line of South Front Street; thence North
29 degrees 56 minutes 48 seconds East, along the Northeasterly right-of-way
line of South Front Street, a distance of 481.39 feet to a concrete monument;
thence North 46 degrees 54 minutes 36 seconds West a distance of 263.31 feet to
a point on the Northeasterly line of Lot 6 as recorded in Plat Book “B”, page 57,
of the Tazewell County Recorder’s Office; thence North 24 degrees 46 minutes 48
seconds West, along the Northeasterly line of said Lot 6 a distance of 35.6
feet; thence North 87 degrees 04 minutes 48 seconds West a distance of 214.55
feet to a point on the Northwesterly line of said Lot 6; said point being 200
feet from the Northerly corner of said Lot 6; thence South 46 degrees 59
minutes 11 seconds West, along the Northwesterly line of said Lot 6 and Lot 8
as recorded in Plat Book “B”, page 57 of the Tazewell County Recorder’s
Office, a distance of 1,146.23 feet to the Northerly corner of Tract I
previously described; thence South 43 degrees 00 minutes 54 seconds East, along
said Tract I, a distance of 280.47 feet; thence South 42 degrees 00 minutes 08
seconds West, along said Tract I, a distance of 188.94 feet; thence South 19
degrees 51 minutes 12 seconds West, along said Tract I, a distance of 276.97 feet;
thence South 69 degrees 54 minutes 46 seconds East, along said Tract I, a
distance of 148.90 feet; thence South 20 degrees 05 minutes 14 seconds West,
along said Tract I, a distance of 196.00 feet; thence South 86 degrees 48
minutes 22 seconds East, along said Tract I, a distance of 267.42 feet; thence
South 00 degrees 56 minutes 03 seconds West, along said Tract I, a distance of
159.82 feet to the property line of Quaker Oats Company; thence North 89
degrees 27 minutes 16 seconds East, along said property line a distance of
345.67 feet; thence North 00 degrees 56 minutes 03 seconds East, along said
property line, a distance of 189.47 feet of the Place of Beginning; situate,
lying and being in the County of Tazewell and State of Illinois.

 

	
  Parcel
  Numbers:

  	
  10-10-09-200-010

  
	
   

  	
  04-10-04-400-002

  
	
   

  	
  10-10-09-200-001

  

 

Initials _______

 

12Exhibit 4.4.3

 

PLEDGE AND SECURITY AGREEMENT

 

This PLEDGE AND SECURITY AGREEMENT (this “Agreement”), executed and delivered as
of the 15th day of April, 2009, by MGP INGREDIENTS, INC.,
a Kansas corporation (“Pledgor”),
in favor of NATIONAL CITY BANK, a
national banking association (“Bank”).  The
following recitals form the basis for this Agreement and are made a material
part hereof:

 

A.                                 Pledgor is the
registered and beneficial owner and holder of that certain Taxable Industrial
Revenue Bond Series 2006 (MGP Ingredients Project) (No. R.1) in the
principal amount of $7,000,000 (the “Bond”) issued by the City of Atchison,
Kansas (the “City”) pursuant to that certain Trust Indenture dated as of December 28,
2006 (the “Indenture”) between the City and Commerce Bank, N.A., as Trustees.

 

B.                                   Bank has agreed
to make a loan in the total amount of up to $3,000,000.00
(the “Loan”)
to Pledgor, evidenced by that certain promissory note in the original principal
amount of the Loan, dated the date hereof, and further described in that
certain Loan Agreement, dated as of the date hereof, between Borrower and Bank
(as amended from time to time, the “Loan Agreement”).

 

C.                                   To secure
further the payment and performance of Borrower’s Obligations, Bank has
requested that Pledgor execute and deliver this Agreement in favor of Bank.

 

NOW, THEREFORE, in consideration of the foregoing, Pledgor agrees with
Bank as follows:

 

I.  DEFINITIONS
AND TERMS

 

1.1                               The following
words, terms and phrases shall have the meanings set forth thereafter and such
meanings shall be applicable to the singular and plural form thereof, giving
effect to the numerical difference, whenever the context so requires.

 

“Collateral”
is defined in Paragraph 2.1 below.

 

“Event of
Default” is defined in Paragraph 4.1 below.

 

“Supplemental
Documentation” is defined in Paragraph 2.2 below.

 

1.2                               Except as
otherwise expressly defined in this Agreement, capitalized terms in this
Agreement shall have the meaning provided in the Loan Agreement, and if not
defined therein, by the applicable definition therefor (if any) in the Uniform
Commercial Code as adopted by the State of Kansas.

 

II. 
COLLATERAL:  GENERAL TERMS

 

2.1                               To secure the
prompt payment and performance of Borrower’s Obligations, Pledgor grants to
Bank a security interest in and to, and pledges and assigns to Bank, all of
Pledgor’s now owned and hereafter acquired right, title, share and interest in,
to and under the Bond.  All of the
foregoing are referred to herein collectively as the “Collateral”.

 

 

2.2                               Pledgor shall
execute and deliver to Bank upon request, at any time and from time to time
hereafter, all agreements, instruments, documents and other written matter (the
“Supplemental
Documentation”) that Bank may reasonably request, in form and
substance acceptable to Bank, including, without limitation, delivering the
original Bond to Bank, endorsed to Bank by means of the form of Assignment
attached hereto, to perfect and maintain Bank’s security interest, lien and
encumbrance in the Collateral and to consummate the transactions contemplated
in or by this Agreement and the Loan Agreement.

 

2.3                               Pledgor
warrants and represents to and covenants with Bank as follows:

 

(a)                               Provided Bank
takes such actions as are required under state law to perfect a security
interest in the Collateral, Bank’s security interest in the Collateral is now
and at all times hereafter shall be perfected and have a first priority, and
the exercise by Bank of its rights hereunder, is not and shall not be a default
under the Bond or result in any defense, set-off of counterclaims asserted by
any Person under the Bond.

 

(b)                              Pledgor agrees
to mail or deliver to Bank copies of any and all notices which Pledgor may from
time to time give to or serve upon the City pursuant to the provisions of the
Indenture, the Lease between the City as Issuer and Pledgor as Tenant dated as
of the issue date of the Bond (the “Lease”), pursuant to which Pledgor agreed
to pay rent in an amount sufficient to pay principal, interest and other
payments on the Bond, and other documents executed by Pledgor in connection
with the Bond, the Indenture or the Lease (collectively, the “Bond
Documents”).  Such copy shall be mailed
or delivered to Bank simultaneously with the mailing or delivery to City.

 

(c)                               Pledgor will
enforce the obligations of the City under the Bond Documents and will promptly
notify Bank, in writing, of any material default under the Bond Documents.  Pledgor will immediately deliver to Bank a
copy of any notice given or received by Pledgor under or relating to any of the
Bond Documents.

 

(d)                              If any action
shall be commenced by Pledgor in respect of the Bond or the Bond Documents,
then Bank shall have the option, exercisable upon notice from Bank to Pledgor,
to conduct and control any such litigation with counsel of Bank’s choice and
reasonably acceptable to Pledgor.  Bank
may proceed in its own name or in the name of Pledgor in connection with any
such litigation, and Pledgor agrees to execute any and all powers, consents or other
documents required by Bank in connection therewith.  Pledgor shall reimburse Bank for all of
Bank’s out-of-pocket expenses incurred in connection with any such litigation,
including Bank’s attorneys’ fees and expenses.

 

III. 
COLLATERAL:  THE BOND

 

3.1                               Pledgor
warrants and represents to Bank that the Bond is being delivered to Bank
concurrently herewith accompanied by an appropriate assignment relating thereto
in blank by Pledgor.  Pledgor, from time
to time hereafter, shall assign any additional or replacement Bond which
becomes subject to this Agreement pursuant to the provisions hereof to Bank in
a form reasonably acceptable to Bank. 
Such additional or replacement Bond shall be delivered to Bank
accompanied with an assignment thereof duly executed by Pledgor in form
reasonably acceptable to Bank in blank by Pledgor.

 

3.2                               Bank may now,
or at any time or times after an Event of Default occurs, transfer the Bond
into the name of Bank, or into the name of Bank’s nominee, without disclosing
that such Bond so

 

2

 

transferred are pledged or hypothecated, and without any indication on
any new bond or other document issued to evidence such obligations, that such
bond is pledged, and the persons issuing the same, or their transfer agents,
shall not be bound to inquire in the event that Bank or said nominee makes any
other transfer of the Bond, as to whether Bank or its nominee has the right to
make such further transfer, and the persons issuing the same, or their transfer
agents, shall not be liable for transferring the same, unless such transfer is
made in connection with the gross negligence or willful misconduct of the
transferring party.

 

IV.  DEFAULT

 

4.1                               The occurrence
of any one of the following events shall constitute a default (“Event of Default”)
under this Agreement:

 

(a)                               If Pledgor
fails or neglects to perform, keep or observe any term, provision, condition,
covenant, warranty or representation contained in this Agreement which is
required to be performed, kept or observed by Pledgor after ten (10) days
written notice and opportunity to cure; or

 

(b)                              If an Event of
Default has occurred under the Loan Agreement or any of the other Loan
Documents.

 

4.2                               All of Bank’s
rights and remedies under this Agreement are cumulative and non-exclusive.

 

4.3                               Upon an Event
of Default, Bank, in its sole and absolute discretion, may exercise any one or
more of the remedies available to it at law or in equity, including, without
limitation:  (a) the rights and
remedies accruing to a secured party under the Uniform Commercial Code of the
relevant state or states and any other applicable law upon default by a debtor;
and (b) sell or cause to be sold the Bond or any part thereof and all of
Pledgor’s right, title and interest therein at public or private sale as Bank
deems advisable in accordance with the applicable laws of the United States or
of any state.

 

4.4                               Pledgor agrees
that in any sale of the Bond, Bank is authorized to comply with any limitation
or restriction in connection with such sale as Bank may deem is necessary or
advisable in order to avoid any violation of applicable law, or in order to
obtain any required approval of the sale or of the purchaser by any
governmental authority or official, and Pledgor further agrees that such
compliance shall not result in such sale being considered commercially
unreasonable, nor shall Bank be liable or accountable to Pledgor for any
discount allowed by reason of the fact that the Bond was sold in compliance
with any such limitation or restriction.

 

4.5                               Any sale of the
Bond may be made for cash or credit at the election of Bank and the amounts of
any such sale shall be credited to Borrower’s Obligations only when the
proceeds thereof are actually received by Bank in immediately available or
collected funds.  Bank, or its nominee,
may become the purchaser at such sale. 
Bank may, if it deems it reasonable, postpone or adjourn any such sale
of the Collateral from time to time by an announcement at the time and place of
sale or by announcement at the time and place of such postponed or adjourned
sale, without being required to give a new notice of sale.

 

4.6                               Pledgor
recognizes that in the event Pledgor fails to perform, observe or discharge any
of Borrower’s Obligations, or breaches any representation, warranty or covenant
hereunder, no remedy of

 

3

 

law will provide adequate relief to Bank, and agrees that Bank shall be
entitled to temporary and permanent injunctive relief in any such case without
the necessity of proving actual damages.

 

4.7                               Any notice
required to be given by Bank of a sale, lease or other intended action by Bank,
deposited in the United States mail, postage prepaid and duly addressed to
Pledgor at the address specified in the Loan Agreement not less than ten (10) days
prior to such proposed action, shall constitute commercially reasonable and
fair notice to Pledgor thereof.

 

4.8                               Pledgor agrees
that Bank has no obligation to preserve rights against prior parties to the
Collateral.  Further, Pledgor waives and
releases any cause of action and claim against Bank as a result of Bank’s
possession, collection or sale of the Collateral, and any liability or penalty
for failure of Bank to comply with any requirement imposed on Bank relating to
notice of sale, holding of sale or reporting of sale of the Collateral, and, to
the extent permitted by law, any right of redemption from such sale.

 

V.  GENERAL

 

5.1                               If at any time
or times hereafter Bank employs counsel  (A) after
an Event of Default, for advice or other representation with respect to the
Collateral, this Agreement or the administration thereof, (B) to represent
Bank in any litigation, contest, dispute, suit or proceeding or to commence,
defend or intervene or to take any other action in or with respect to any litigation,
contest, dispute, suit or proceeding (whether instituted by Bank, Pledgor or
any other Person) in any way or respect relating to the Collateral, this
Agreement or Pledgor’s affairs or (C) after an Event of Default, to
enforce any rights of Bank against Pledgor or any other Person which may be
obligated to Bank by virtue of this Agreement, the attorneys’ fees and costs
incurred by Bank in any manner or way with respect to the foregoing employment
of counsel shall be payable by Pledgor to Bank on demand, shall be part of
Borrower’s Obligations and shall be secured by all of the Collateral.

 

5.2                               If any
provision of this Agreement or the application thereof to any Person or
circumstance is held invalid or unenforceable, the remainder of this Agreement
and the application of such provision to other Persons or circumstances will
not be affected thereby, the provisions of this Agreement being severable in
any such instance.

 

5.3                               This Agreement
shall continue in full force and effect until Borrower’s Obligations are fully
paid, performed and discharged.  This
Agreement shall continue to be effective or be reinstated, as the case may be,
if at any time payment of any of Borrower’s Obligations is rescinded or must
otherwise be returned by Bank upon the insolvency, bankruptcy, or
reorganization of Pledgor, all as though such payment had not been made.

 

5.4                               No termination
of this Agreement or any of the Loan Documents (except pursuant to Section 5.3
above) shall in any way affect or impair the powers, obligations, duties,
rights and liabilities of Pledgor or Bank in any way or respect relating to (A) any
transaction or event occurring prior to such termination, (B) any of the
Collateral and (C) any of the undertakings, agreements, covenants,
warranties and representations of Pledgor contained in this Agreement or any of
the Loan Documents.

 

5.5                               All covenants,
warranties and representations contained herein shall be true as of the date
hereof and shall survive the execution and delivery of this Agreement.

 

5.6                                  Bank may
assign, sell participation interests in, negotiate, pledge or otherwise
hypothecate this Agreement and any of its rights and security hereunder.  Pledgor may not assign its rights under this
Agreement without the prior written consent of Bank.  Bank is authorized to disclose to 

 

4

 

any actual or prospective assignee hereunder
or loan participant such information concerning Pledgor, the Bond, or other
matters as Bank deems appropriate, provided such party agrees in writing to
keep confidential such information.

 

5.7                                  No waiver of
any breach or default hereunder shall constitute or be construed as a waiver by
Bank of any subsequent breach or default or of any breach or default of any
other provisions of this Agreement.  Any
waiver by Bank must be in writing and will not be construed as a continuing
waiver.  No waiver will be implied from
any delay or failure to take action on account of any default of Pledgor.

 

5.8                                  Any notices
required or permitted to be given under this Agreement shall be given as
provided in the Loan Agreement.

 

5.9                                  This Agreement
and the terms, provision and condition herewith shall be governed by and
construed and enforced in accordance with the internal laws of the State of
Kansas (without giving effect to the conflicts of law provisions thereof).

 

[SIGNATURE APPEARS ON THE FOLLOWING PAGE]

 

5

 

IN WITNESS WHEREOF, this Agreement has been duly executed as of the day
and year first above written.

 

	
   

  	
  “Pledgor”:

  
	
   

  	
   

  
	
   

  	
  MGP
  INGREDIENTS, INC., a Kansas corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy W. Newkirk

  
	
   

  	
  Name: Timothy W. Newkirk

  
	
   

  	
  Title:
  President & CEO

  

 

6

 

ASSIGNMENT

Taxable Industrial Revenue Bond,

Series 2006 (MGP Ingredients Project

 

FOR
VALUE RECEIVED, the undersigned sells, assigns and transfers unto

 

 

(Print
or Type Name, Address and Social Security Number

or
other Taxpayer Identification Number of Transferee)

 

the Bond represented by this certificate and
all rights thereunder, and hereby 
authorized the transfer of the within Bond on the books kept by the Bond
Registrar and Paying Agent for the registration and transfer of Bonds.

 

Dated: 
                                    .

 

 

	
   

  	
  MGP
  INGREDIENTS, INC., a Kansas corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  NOTICE:  The signature to this assignment must
  correspond with the name of the Registered Owner as it appears on the face of
  the within Bond in every particular.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guaranteed By:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Name
  of Eligible Guarantor Institution)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTICE:  Signature(s) must be guaranteed by an
  eligible guarantor institution as defined by SEC Rule 17Ad-15 (17 CFR
  240.17Ad-15).

  
					

 

7

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