Exhibit (4)(b)
LINE OF CREDIT NOTE
$27,000,000 September _______, 1995
FOR VALUE RECEIVED, the undersigned, MIDWEST GRAIN PRODUCTS, INC., a Kansas
corporation ("Borrower") hereby promises to pay to the order of Commerce Bank
of Kansas City, N.A. ("Bank") at its offices in Kansas City, Missouri, the
aggregate unpaid principal amount and accrued interest of all borrowings
hereunder. The aggregate unpaid principal amount shall also become immediately
due and payable, without demand or further action on the part of Bank upon the
occurrence of an event of default as set forth in Section 4.1 of the Line of
Credit Loan Agreement, as amended, dated November 30, 1993 (the "Agreement").
Interest on this note shall be calculated on the actual number of days on the
basis of a year of 360 days. If the outstanding balance is less than $500,000,
the line of credit shall bear interest at a per annum rate equal to the Prime
Rate. If the outstanding balance is $500,000 or greater, the line of credit
shall bear interest at the greater of either (1) the Prime Rate, minus 1%, or
(2) the Federal Funds Rate plus 1.50%.
Interest will be payable monthly, in arrears, and at maturity, whether by
acceleration or otherwise, beginning October 1,1995, and on the first day of
each month thereafter. Interest will be computed on the actual days
outstanding based upon a year consisting of 360 days. If any interest payment
on this note shall become due and payable on a day which is not a business day
of Bank, payment shall be made on the next succeeding business day of Bank.
"Prime Rate" means the Prime Rate of interest established from time to time by
Commerce Bank and designated as such for its internal convenience, and no
representation is made that the Prime Rate is the best, the lowest or a favored
rate of interest. The rate of interest, if tied to the Prime Rate, shall
change with and be effective on the date of each change in the Prime Rate.
"Federal Funds Rate" means the effective Federal Funds Rate as quoted by the
Federal Reserve Bank of New York on a daily basis. The Federal Funds Rate is
adjusted daily.
So long as the Agreement has not been terminated, Borrower may, from the date
of this note through October 1, 1997 borrow, repay and reborrow sums, at any
one time outstanding, not to exceed $27,000,000. All advances and repayments
hereunder shall be endorsed on the reverse hereof (or an attached schedule) by
the Bank or holder, and between the undersigned and Bank, such endorsements and
the balances derived from such endorsements shall be conclusively presumed to
reflect the amounts advanced and repaid hereunder and the then outstanding and
unpaid balance of sums advanced or readvanced hereunder.
The undersigned hereby waives presentment, protest, demand and notice of
dishonor or default.
This note is issued pursuant to the terms of the Agreement, to which Agreement,
and any amendments thereto, reference is hereby made for a statement of the
terms and conditions under which this borrowing was made, and is to be repaid.
MIDWEST GRAIN PRODUCTS, INC.
By: /s/ Xxxx X. Xxxxxxxxx
Title: President & CEO
By: /s/ Xxxxxx X. Xxxx
Title: VP - CFO
