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Loan Agreement

Loan Agreement

Loan Agreement | Document Parties: MGP INGREDIENTS INC | Everest DBA Bank of Atchison USB | Union State Bank of Everest DBA Bank You are currently viewing:
This Loan Agreement involves

MGP INGREDIENTS INC | Everest DBA Bank of Atchison USB | Union State Bank of Everest DBA Bank

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Title: Loan Agreement
Date: 9/11/2009
Industry: Food Processing     Sector: Consumer/Non-Cyclical

Loan Agreement, Parties: mgp ingredients inc , everest dba bank of atchison usb , union state bank of everest dba bank
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Exhibit 4.6

 

MGP INGREDIENTS, INC. (TIN:48-0531200)

Union State Bank of Everest DBA Bank of Atchison USB

Loan Number

BOA92377

PO Box 130

701 Kansas Avenue

Date

07/20/09

Atchison, KS 66002

Atchison, KS 66002

Maturity Date

07/25/16

 

 

Loan Amount

2,000,000.00

 

 

Renewal Of

New

BORROWER’S NAME AND ADDRESS
“I” includes each borrower above, jointly and severally

LENDER’S NAME AND ADDRESS
“You” means the lender, its successors and assigns.

 

 

 

For value received, I promise to pay to you, or your order, at your address listed above the PRINCIPAL sum of  Two Million and 00/100                                                                                                                                                           Dollars $ 2,000,000.00

x    Single Advance:   I will receive all of this principal sum on  July 20, 2009 .  No additional advances are contemplated under this note.

o     Multiple Advance:   The principal sum shown above is the maximum amount of principal I can borrow under this note.  On                          I will receive the amount of $                                  and future principal advances are contemplated.

Conditions:   The conditions for future advances are                                                                                                                          

o     Open End Credit:   You and I agree that I may borrow up to the maximum amount of principal more than one time.  This feature is subject to all other conditions and expires on                                                                              .

x    Closed End Credit:   You and I agree that I may borrow up to the maximum only one time (and subject to all other conditions).

INTEREST:   I agree to pay interest on the outstanding principal balance from-  July 20, 2009  at the rate of  7.500 % per year until  October 25, 2009 .

x    Variable Rate:   This rate may then change as stated below.

x    index Rate:   The future rate will be      6.000% over  the following index rate:  Three Year Treasury

 

 

o     No Index:   The future rate will not be subject to any internal or external index.  It will be entirely in your control.

x    Frequency and Timing:   The rate on this note may change as often as every three months beginning October 25, 2009 A change in the interest rate will take effect Oct. 25th, 2009 and every third month thereafter

o     Limitations:   During the term of this loan, the applicable annual interest rate will not be more than                 % or less than                  %.  The rate may not change more than                % each                                    .

Effect of Variable Rate:   A change in the interest rate will have the following effect on the payments:

o     The amount of each scheduled payment will change.  o  The amount of the final payment will change.

o

ACCRUAL METHOD:  Interest will be calculated on a  Actual/360 Day  basis.

POST MATURITY RATE:   I agree to pay interest on the unpaid balance of this note owing after maturity, and until paid in full, as stated below:

x    on the same fixed or variable rate basis in effect before maturity (as indicated above).

o     at a rate equal to

x    LATE CHARGE:   If a payment is made more than  10  days after it is due, I agree to pay a late charge of  5% of the late payment with a minimum of $1,000 and a maximum of $1,500

o     ADDITIONAL CHARGES:   In addition to interest, I agree to pay the following charges which o are o are not included in the principal amount above:

PAYMENTS:   I agree to pay this note as follows:

o     Interest:   I agree to pay accrued interest

 

o     Principal:   I agree to pay the principal

 

x    Installments:   I agree to pay this note in  84  payments.  The first payment will be in the amount of $ 32,000.00 and will be due  August 25, 2009 .  A payment of $ 32,000.00  will be due on the 25th day of each month  thereafter.  The final payment of the entire unpaid balance of principal and interest will be due July 25th 2016 .

ADDITIONAL TERMS:

Borrower agrees to the following:  1) Provide unedited Monthly financial statements, profit & loss and Cash flow projections within 30 days after Month end.  2) Provide the Bank with adequate insurance coverage on mortgaged assets to include Flood Insurance in the designated areas.  3) Pay all fees associated with this loan-see work sheet dated 7-20-09.  4) A prepayment fee of 3% of the balance, based on the regular scheduled payment of $32,000 a month.  This prepayment penalty is for the 1st Five years, ending July 25th, 2014.  Bank will waive the prepayment fee, if Bank is a party to a renewal of this note.  5) Provide bank with all monitoring results for the active ‘LUST’ as identified in the Phase 1 environmental study dated March 2009 by URS.  6) All terms are subject to the Intercreditor agreement dated July 20th 2009.  Borrower and Lender acknowledge the existence of recognizable environmental conditions (RECs) as disclosed in the “Phase 1 Environmental Site Assessment” dated March 2009, completed by URS.  Lender accepts this as full disclosure of known RECs by borrower.

 

x    SECURITY: This note is separately secured by (describe

 

PURPOSE: The purpose of this loan is  working capital

separate document by type and date):

 

 

Security agreement dated 7-20-09 and Real estate mortgage dated 7-20-09

 

SIGNATURES: I AGREE TO THE TERMS OF THIS NOTE (INCLUDING THOSE ON PAGE 2) . I have received a copy on today’s date.

(This section is for your internal use. Failure to list a separate security document does not mean the agreement will not secure this note.)

 

MGP INGREDIENTS, INC.

Signature for Lender

 

/s/ Timothy W. Newkirk

 

 

Timothy W. Newkirk, President & CEO

/s/ Donald E. Bell

 

 

Donald E. Ball, Senior Vice President

 

 

 

 

 

 

 

 

UNIVERSAL NOTE

 

 

 

 

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