Document:

Exhibit 4.2

Execution Version

 

RESTRUCTURING
AGREEMENT

 

THIS RESTRUCTURING AGREEMENT (“Restructuring Agreement”)
entered into as of this 20th day of July, 2009, by and between CENTRAL ILLINOIS
LIGHT COMPANY (“CILCO”), an Illinois corporation, and MGP INGREDIENTS, INC. (“MGP”),
f/k/a Midwest Grain Products, Inc., a Kansas corporation.

 

RECITALS

 

A.            CILCO’s
predecessor-in-interest, Cilcorp Development Services, Inc., and MGP entered
into a Steam Heat Service Agreement dated December 16, 1993 (“Steam
Agreement”).

 

B.            CILCO
and MGP entered into a Gas Service Agreement dated September 1, 2006 (“Gas
Agreement”, and together with the Steam Agreement, the “Supply Agreements”).

 

C.            MGP
agreed to pay CILCO, under CILCO’s tariffs, for electric and natural gas
delivery service (“Delivery Service”).

 

C.            MGP
is in default under both Supply Agreements as a result of its failure to make payments
required thereunder, and has failed to pay for Delivery Service.

 

D.            The
parties desire to agree upon a payment schedule with regard to amounts owed under
the Supply Agreements and pursuant to the Delivery Service and provide for the
termination of the Steam Agreement.

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

 

1.             Payment. 
The parties agree that as of June 30, 2009, MGP owes CILCO $5,283,028.41
under the Steam Agreement, $6,076,773.26 under the Gas Agreement and
$254,395.52 for Delivery Service (collectively, the “Balance Due”).  Although MGP is in default under the Supply
Agreements and Delivery Service and the Balance Due is immediately due and
payable, CILCO has agreed to not declare a default, and to accept payment of
the Balance Due in accordance with a payment schedule reflected in the Note
delivered by MGP contemporaneously with the execution of this Restructuring Agreement
(“Note”), which Note provides for the payment in full of the Balance Due, plus
interest, over an 20-month period.  MGP
agrees to keep current with respect to any amounts which become due under the
Gas Agreement or pursuant to the Delivery Service after June 30, 2009.

 

2.             Security.

 

(a)           As
security for the Note, MGP shall execute on the date hereof an Assignment of
Income Tax Refunds and Proceeds (“Assignment”) pursuant to which MGP assigns all
of its rights, title and interest in and to certain income tax refunds and
proceeds identified in the Assignment (“Refund”).  In addition, MGP agrees to execute any
additional documents which are necessary in order to direct the Internal
Revenue Service to pay the Refund directly to CILCO.

 

 

(b)           As
additional security for the Note, within thirty (30) days after the date of
this Agreement, MGP shall execute and deliver and shall use its best efforts to
cause any third parties to execute and deliver to CILCO any and all
documentation reasonably requested by CILCO in order to grant to CILCO a
mortgage, security agreement and assignment of rents (the “Mortgage”),
insurable by a title insurance company, in all of the real property, including
but not limited to the buildings and other improvements thereon, on the 51.333
acre site located at 1301 South Front Street, Pekin, Illinois 61554, which
Mortgage shall be subordinate only to the interest held by Exchange National Bank &
Trust Co. in the maximum amount of Two Million Eight Hundred Thousand Dollars ($2,800,000.00).

 

3.             Termination of the Steam Agreement.  With respect to the Steam Agreement, the
parties agree as follows:

 

(a)           The
Steam Agreement shall terminate effective as of June 30, 2009.

 

(b)           Should
MGP elect to reopen its grain processing plant located on South Front Street in
Pekin, Illinois (“MGP Plant”), the parties will negotiate regarding the terms
of a new steam agreement (“New Agreement”). 
Among other things, any New Agreement shall provide (i) that MGP is
responsible for all costs relating to the start-up of the Boiler Plant (as
defined in the Steam Agreement) and its ongoing staffing requirements, and (ii) for
a new schedule of charges reflective of the increased costs and expenses
involved in operating and maintaining the Boiler Plant.  Neither party shall be liable to the other
for a failure to execute a New Agreement, and a failure to execute a New
Agreement shall not affect MGP’s obligations under the Note, the Assignment or
the Real Estate Documents.

 

4.             Miscellaneous.

 

(a)           Notices.  All notices and other communications required
hereunder shall be in writing and shall be deemed given if delivered
personally, mailed by registered or certified mail, return receipt requested,
or sent by telecopy with receipt confirmed by telephone, to the parties at the
following addresses or to such other addresses as a party may from time to time
notify the other parties.

 

	
  (i)

  	
  If to CILCO, to:

  
	
   

  	
   

  
	
   

  	
  Central Illinois Light Company

  
	
   

  	
  300 Liberty Street

  
	
   

  	
  Peoria, Illinois 61602

  
	
   

  	
  Attention: Stan E.
  Ogden , Vice President

  
	
   

  	
  Telecopy: 309-677-5016

  

 

2

 

	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Daniel J. Godar

  
	
   

  	
  Armstrong Teasdale LLP

  
	
   

  	
  One Metropolitan Square

  
	
   

  	
  Suite 2600

  
	
   

  	
  St. Louis, MO
  63102-2740

  
	
   

  	
  Telecopy: 314-612-2249

  
	
   

  	
   

  
	
  (ii)

  	
  If to MGP
  Ingredients, Inc., to:

  
	
   

  	
   

  
	
   

  	
  Tim Newkirk

  
	
   

  	
  President

  
	
   

  	
  MGP
  Ingredients, Inc.

  
	
   

  	
  100 Commercial Plaza

  
	
   

  	
  Atchison, Ks. 66002

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Carl W. Struby

  
	
   

  	
  Lathrop & Gage
  LLP

  
	
   

  	
  2345 Grand Blvd

  
	
   

  	
  Suite 2800

  
	
   

  	
  Kansas City, Missouri 64108

  

 

(b)           Assignment.  This Restructuring Agreement shall not be
assignable by any party without the prior written consent of all other parties
hereto.  Subject to the foregoing, this
Restructuring Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective successors in interest and assigns.

 

(c)           Waiver.  The failure of a party to insist upon strict
adherence to any term of this Restructuring Agreement on any occasion shall not
be considered a waiver thereof or deprive that party of the right thereafter to
insist upon strict adherence to that term or any other term of this
Restructuring Agreement.

 

(d)           Entire
Agreement; Amendment.  This Restructuring
Agreement shall supersede any and all existing agreements between the parties
hereto and relating to the subject matter hereof and may not be amended except
by a written agreement signed by all parties hereto.

 

(e)           Governing
Law.  This Restructuring Agreement
shall be governed by and construed in accordance with the internal laws, and
not the laws of conflicts of laws, of the State of Illinois.

 

(f)            Heading.  Section headings are used herein for
convenience of reference only and shall not affect the meaning of any provision
of this Restructuring Agreement.

 

3

 

(g)           Severability.  If any provision of this Restructuring
Agreement is invalid or unenforceable, the balance of this Restructuring Agreement
shall remain in effect to the extent that the remaining provisions are not
affected by such invalidity or unenforceability.

 

(h)           Further
Assurances.  The parties hereto shall
each take as promptly as possible all such action as may be necessary or
appropriate in order to effectuate the transactions contemplated hereunder,
subject to the terms explicitly set out herein.

 

(i)            Counterparts.  This Restructuring Agreement may be executed
in one or more counterparts each of which shall be deemed an original but all
of which taken together shall constitute one and the same agreement.

 

[Signature Page Follows]

 

4

 

IN WITNESS WHEREOF, the parties have caused this
Restructuring Agreement to be executed by their duly authorized representatives
as of the date set forth above.

 

 

	
   

  	
  CENTRAL ILLINOIS LIGHT
  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stan E. Ogden

  
	
   

  	
  Name:

  	
  Stan E. Ogden

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MGP INGREDIENTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy W. Newkirk

  
	
   

  	
  Name:

  	
  Timothy W. Newkirk

  
	
   

  	
  Title:

  	
  President &
  CEO

  

 

5Exhibit 4.2.1

Execution
Version

 

PROMISSORY NOTE

 

	
  $11,614,197.19

  	
  July 20, 2009

  

 

On or before the Maturity Date, the
undersigned, MGP INGREDIENTS, INC. f/k/a Midwest Grain Products, Inc., a
Kansas corporation, whose address is 100 Commercial Street, Box 130, Atchison,
Kansas (“MGP”), for value received, promises to pay to the order of CENTRAL
ILLINOIS LIGHT COMPANY, an Illinois corporation, whose address is 300 Liberty
Street, Peoria, Illinois 61602 (“CILCO”), at 300 Liberty Street, Peoria,
Illinois 61602, or at such other place as may be designated in writing by CILCO,
in lawful money of the United States of America in immediately available funds,
the principal sum of Eleven Million Six Hundred Fourteen Thousand One Hundred
Ninety-Seven Dollars and Nineteen Cents ($11,614,197.19) together with interest
on the aforesaid principal sum, from the date hereof, at the rate or rates
hereinafter specified.

 

This Note is executed in connection with that
certain Restructuring Agreement dated of even date herewith between MGP and CILCO
(the “Restructuring Agreement”).  The
term “Maturity Date” shall mean March 14, 2011, or any earlier date on
which payment hereunder is due whether by acceleration or otherwise.  This Note is secured by an Assignment of
Income Tax Refunds and Proceeds of even date herewith by and among MGP and CILCO
(the “Assignment”).

 

During the period between the date of this
Note and the Maturity Date, MGP agrees to pay interest on the from time to time
unpaid principal balance of this Note at a rate of nine percent (9%) per annum
(the “Loan Interest Rate”).

 

Subject to the provisions of this paragraph,
said principal shall be due and payable in eighteen (18) equal monthly
installments together with interest thereon, with the first such payment being
due October 14, 2009 and the final payment being due on the Maturity Date.  In addition, on each of August 14, 2009
and September 14, 2009, interest payments shall be due and payable on the outstanding
principal amount of the Note.  Each of the
payments made pursuant to this Note shall be applied first to the payment of
accrued interest and then to the reduction of the principal balance.  MGP agrees that for so long as any principal
or interest remains outstanding under this Note, all distributions, refunds and
other payments of money relating to the Collateral (as defined in the
Assignment), shall be paid and delivered directly to CILCO and applied as a
prepayment of the Note (up to the aggregate amount of the then outstanding
principal and interest on this Note).  In
the event that MGP directly receives any portion of such Collateral, MGP agrees
to make prepayment of this Note in 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.  After each prepayment of Collateral, the principal
balance of this Note shall be accordingly reduced and the remaining principal
shall thereafter be due and payable in a number of equal monthly installments
equal to the number of payment dates remaining until (and including) the
Maturity Date, together with interest thereon, with the first such payment
being due on the 14th day of the month following the applicable prepayment.

 

CILCO shall invoice MGP for amounts due
pursuant to this Note at least fourteen (14) days in advance of the due date of
each payment, provided that CILCO’s failure to deliver any such invoice or
notice shall in no way relieve MGP of any payment obligation hereunder.  Invoices shall be delivered to MGP at the
address set forth in the initial paragraph of this Note or to such other
address as MGP may from time to time notify CILCO in writing.

 

After the Maturity Date, the rate of interest
of this Note shall be the Loan Interest Rate plus five (5) percentage
points per annum (the “Default Rate”).

 

 

If any payment of principal or interest due
on this Note is payable on a day which is a Saturday, Sunday, or legal holiday
in the State of Illinois, then such payment shall be due on the next business
day, the amount of such payment, in such case, to include all interest accrued
to the date of actual payment.

 

Should (a) MGP fail to make any payment hereunder
on the date when due (including the payment of any portion of the Collateral),
and any portion of such payment shall remain unpaid for a period of five (5) days
after such due date, (b) MGP undergo a Change in Control (as defined
below),  (c) there be a violation of any
term, condition, covenant, representation or warranty set forth in the Restructuring
Agreement, the Assignment or any agreement or certificate referenced by either
such document, or (d) MGP divest all or substantially all of its interest
in that certain grain processing plant located at 1301 South Front Street,
Pekin, Illinois 61554, then in any such case the holder of this Note, at its
option and without further notice or demand, may declare immediately due and
payable the entire unpaid balance of principal due under this Note, together
with all accrued interest thereon.  In
such case, the holder of this Note may also recover all costs of suit and other
expenses in connection with efforts to collect any of the aforesaid amounts,
together with reasonable attorneys’ fees (including attorneys’ fees for
representation in proceedings under the Bankruptcy Code), regardless of whether
litigation is commenced, together with interest on any judgment obtained by the
holder of this Note at the Default Rate, including interest at the Default Rate
from and after the date of any such default until actual payment is made to the
holder of this Note of the full amount due such holder.

 

As used above, the term “Change in Control”
means, with respect to a referenced Person, the occurrence of any one of the
following events:  (a) any Person
who is not an Affiliate of the referenced Person becomes a “beneficial owner,”
as such term is used in Rule 13d-3 under the Securities Exchange Act of
1934, of more than twenty percent (20%) of the referenced Person’s voting stock
or equity; (b) the referenced Person adopts any plan of liquidation
providing for the distribution of all or substantially all of its assets; or (c) the
referenced Person is party to a merger, consolidation, other form of business
combination with a Person not Affiliated with the referenced Person, unless the
business of the referenced Person is continued following any such transaction
by a resulting entity (which may be, but need not be, the referenced Person)
and the owners of the referenced Person immediately prior to such transaction
hold, directly or indirectly, a majority of the voting power of the resulting
entity.

 

MGP reserves the right to prepay the whole or
any part of the principal sum hereof at any time or from time to time, without
premium or penalty, so long as no default has occurred under this Note.  The holder, however, shall have no obligation
to re-advance any sums prepaid and any partial prepayment shall not relieve the
undersigned of paying succeeding installment maturities when due.  Interest accrued on any part of the principal
hereof which is prepaid shall be paid with such principal prepayment.

 

Presentment and demand for payment, notice of
non-payment, protest, protest of non-payment, notice of protest, notice of
dishonor, and any and all lack of diligence and suit are hereby waived by all
parties liable hereon.  Any failure by
any holder hereof to exercise any right hereunder shall not be construed as a
waiver of the right to exercise the same or any other right at any other time
and from time to time thereafter.

 

The loan evidenced hereby has been made and
this Note has been delivered, in Peoria, Illinois, and such loan, this Note,
and the rights, obligations and remedies of CILCO and the undersigned shall be
governed by and construed in accordance with the internal laws of the State of Illinois.  All obligations of the undersigned and
rights, powers and remedies of CILCO, expressed herein shall be in addition to,
and not in limitation of, those provided by law.  This Note shall be freely assignable by CILCO.

 

THE INDEBTEDNESS EVIDENCED BY THIS NOTE IS
SUBJECT TO THE TERMS OF A SUBORDINATION AGREEMENT DATED OF EVEN DATE HEREWITH
BY AND AMONG MGP, CILCO AND WELLS FARGO BANK, NATIONAL ASSOCIATION.

 

 

ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY,
EXTEND CREDIT, OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING
PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE.  TO PROTECT BORROWER AND CREDITOR FROM
MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH
MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE
STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN
WRITING TO MODIFY IT.

 

[Signature page follows.]

 

 

IN WITNESS WHEREOF, the undersigned has
caused this Note to be executed and delivered 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

  

 

Signature Page to
Promissory Note

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