<SUBMISSION>
<ACCESSION-NUMBER>0000916002-04-000080
<TYPE>S-8
<PUBLIC-DOCUMENT-COUNT>5
<FILING-DATE>20041020
<DATE-OF-FILING-DATE-CHANGE>20041020
<EFFECTIVENESS-DATE>20041020
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>MGP INGREDIENTS INC
<CIK>0000835011
<ASSIGNED-SIC>2040
<IRS-NUMBER>480531200
<STATE-OF-INCORPORATION>KS
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>S-8
<ACT>33
<FILE-NUMBER>333-119860
<FILM-NUMBER>041088018
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1300 MAIN ST
<CITY>ATCHISON
<STATE>KS
<ZIP>66002
<PHONE>9133671480
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1300 MAIN STREET
<CITY>ATCHISON
<STATE>KS
<ZIP>66002
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>MIDWEST GRAIN PRODUCTS INC
<DATE-CHANGED>19920703
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>S-8
<SEQUENCE>1
<FILENAME>forms8.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>FORM S-8</TITLE>
</HEAD>
<BODY>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>
UNITED STATES <BR>
SECURITIES AND EXCHANGE COMMISSION </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Washington, D.C. 20549 </FONT></H1>

<P ALIGN=CENTER>_________________ </P>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>
FORM S-8 </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
REGISTRATION STATEMENT <BR>
UNDER <BR>
THE SECURITIES ACT OF 1933 </FONT></H1>

<P ALIGN=CENTER>_________________ </P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4><B>
MGP INGREDIENTS, INC. </B></FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(Exact name of registrant as specified in its charter) </FONT></P>

<P ALIGN=CENTER>_________________ </P>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="15%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="20%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
Kansas</B></FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="25%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
48-0531200</B></FONT></TD>
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
<TD WIDTH="15%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="20%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
(State of Incorporation)</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="25%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
(I.R.S. Employer Identification No.)</FONT></TD>
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp;</FONT></TD></TR>
</TABLE><BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
MGP INGREDIENTS, INC. <BR>
STOCK INCENTIVE PLAN OF 2004 <BR></B>
(Full Title of Plan) </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
1300 Main Street <BR>
P. O. Box 130 <BR>
Atchison, Kansas 66002 <BR>
(913)&nbsp;367-1480 <BR></B>
(Address, including zip code, and telephone number, including <BR>
area code, of registrant&#146;s principal executive offices) </FONT></P>

<P ALIGN=CENTER>_________________ </P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
Carl W. Struby <BR>
Lathrop &amp; Gage L.C. <BR>
Suite 2800 <BR>
2345 Grand Boulevard <BR>
Kansas City, Missouri 64108 <BR>
(816)&nbsp;292-2000 <BR></B>
(Name, address, including zip code, and telephone number, including area code, of agent for
service) </FONT></P>

<P ALIGN=CENTER>_________________ </P>

<TABLE WIDTH="100%" BORDER="1" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP" ALIGN="CENTER">
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
CALCULATION OF REGISTRATION FEE</FONT></TD></TR>
</TABLE>

<TABLE WIDTH="100%" BORDER="1" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP" ALIGN="CENTER">
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
Title of Each<BR>
Class of Securities<BR>
To Be Registered</B></FONT></TD>
<TD WIDTH="15%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
Amount To Be<BR>
Registered<SUP>(1)</SUP><BR>
&nbsp;&nbsp;</B></FONT></TD>
<TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
Proposed Maximum<BR>
Offering Price<SUP>(2)</SUP><BR>
Per Share</B></FONT></TD>
<TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
Proposed Maximum<BR>
Aggregate Offering<SUP>(2)</SUP><BR>
Price</B></FONT></TD>
<TD WIDTH="15%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
Amount of<BR>
Registration Fee<BR>
&nbsp;&nbsp;</B></FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Common Stock no par value</FONT></TD>
<TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
980,000</FONT></TD>
<TD WIDTH="20%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
$8.78</FONT></TD>
<TD WIDTH="20%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
$8,604,400</FONT></TD>
<TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
$1,090</FONT></TD></TR>
</TABLE><BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(1) </FONT></TD>
<TD WIDTH="95%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Plus any additional amount that may result from plan adjustments to prevent
dilution resulting from stock dividends, stock splits or similar transactions. </FONT></TD>
</TR>

<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(2) </FONT></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Pursuant to Rule 457(c) and (h) under the Act, the proposed maximum offering
price per share and the proposed maximum aggregate offering price are estimated
solely for purposes of calculating the registration fee, and are based upon the
average of the high and low prices of the Common Stock of the Company as
reported by NASDAQ on October 13, 2004. </FONT></P></TD>
</TR>
</TABLE>
<BR>


<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
1</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
PART II <BR>
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT </FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Item 3. Incorporation of Documents by Reference. </FONT></H1>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following documents filed by the Company with the Securities and Exchange Commission are
incorporated herein by reference and made a part of this Registration Statement: </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.&nbsp;&nbsp;The Company&#146;s Annual Report on Form 10-K for the fiscal year ended June 30,
2004; </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.&nbsp;&nbsp;All other reports filed by the Company under Sections&nbsp;13(a) or 15(d) of the
Securities Exchange Act of 1934 since June 30, 2004; and </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3.&nbsp;&nbsp;The description of the Company&#146;s Common Stock contained in the
Company&#146;s Registration Statement on Form&nbsp;8-A (File No. 000-17196)
filed September 23, 1988, including any amendment or report filed for the
purpose of updating such description. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, all documents subsequently filed by the Company pursuant to Sections&nbsp;13(a),
13(c), 14 and 15(d) of the Securities Exchange Act of 1934, as amended, prior to the
filing of a post-effective amendment which indicates that all securities offered have been
sold or which deregisters all securities then remaining unsold shall be deemed to be
incorporated by reference into this Registration Statement and to be a part hereof from
the date of filing of these documents. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any statement contained herein or in a document all or a portion of which is incorporated or
deemed to be incorporated by reference herein shall be deemed to be modified or superseded
for purposes of this Registration Statement to the extent that a statement contained
herein or in any other subsequently filed document which also is or is deemed to be
incorporated by reference herein modifies or supersedes such statement. Any such statement
so modified or superseded shall not be deemed, except as so modified or amended, to
constitute a part of this Registration Statement. </FONT></P>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Item 4. Description of Securities. </FONT></H1>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.</FONT></P>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Item 5. Interests of Named Experts and Counsel. </FONT></H1>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable.</FONT></P>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Item 6. Indemnification of Directors and Officers. </FONT></H1>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;17-6002 (a)(8) of the Kansas General Corporation Code provides that a certificate of incorporation
may contain a provision eliminating or limiting the personal liability of a director to
the corporation or its stockholders for monetary damages for breach of fiduciary duty as a
director, provided that such provision shall not eliminate or limit the liability of a
director (i)&nbsp;for any breach of the director&#146;s duty of loyalty to the corporation
or its stockholders; (ii)&nbsp;for acts or omissions not in good faith or which involve
intentional misconduct or a knowing violation of law; (iii)&nbsp;under
Section&nbsp;17-6424 of the Kansas General Corporation Code (relating to liability for
unauthorized acquisitions or redemptions of, or dividends on, capital stock); or
(iv)&nbsp;for any transaction from which the director derived an improper personal
benefit. The Company&#146;s restated and amended certificate of incorporation contains the
provisions permitted by Section&nbsp;17-6002 (a)(8) of the Kansas General Corporation
Code. The effect of these provisions is to eliminate the Company&#146;s and its
stockholders&#146; rights (through stockholders&#146; derivative suits on behalf of the
Company) to recover monetary damages against a director for breach of the fiduciary duty
of care as a director except in the situations described in clauses (i)&nbsp;through
(iv)&nbsp;above. The limitations described above, however, do not affect the ability of
the Company or its stockholders to seek non-monetary based remedies, such as an injunction
or rescission, against a director for breach of his fiduciary duty nor would such
limitations limit liability under the federal securities laws. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under Section&nbsp;17-6303 of the Kansas General Corporation Code, a corporation has the power
under specified circumstances to indemnify its directors, officers, employees and agents
in connection with actions, suits or proceedings brought against them by a third party or
in the right of the corporation, by reason of the fact that they were or are such
directors, officers, employees or agents, against expenses, judgments and other amounts
incurred in any such action, suit or proceeding. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Bylaws of the Company provide that each person who is or was or had agreed to become a
director or officer of the Company, or each such person who is or was serving or who had
agreed to serve at the request of the Company as a director or officer </FONT></P>


<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
2</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
of another corporation, partnership, joint venture, trust or other enterprise (including the heirs,
executors, administrators or estate of such person), will be indemnified by the Company,
to the fullest extent permitted from time to time by the Kansas General Corporation Code
as the same exists or may hereafter be amended (but, if permitted by applicable law, in
the case of any such amendment, only to the extent that such amendment permits the Company
to provide broader indemnification rights than said law permitted the Company to provide
prior to such amendment). The Company may, by action of the Company Board, provide
indemnification to employees and agents of the Company, and to persons serving as
employees or agents of another corporation, partnership, joint venture, trust or other
enterprise, at the request of the Company, with the same scope and effect as the foregoing
indemnification of directors and officers. The Company may be required to indemnify any
person seeking indemnification in connection with a proceeding (or part thereof) initiated
by such person only if such proceeding (or part thereof) was authorized by the Company
Board or is a proceeding to enforce such person&#146;s claim to indemnification pursuant
to the rights granted by the Bylaws or otherwise by the Company. The right to
indemnification includes the right to be paid by the Company the expenses incurred in
defending any such proceeding in advance of its final disposition, provided that the
payment of such expenses in advance of the final disposition of a proceeding shall be made
only upon delivery to the Company of an undertaking to repay all amounts so advanced if it
shall ultimately be determined that such director or officer is not entitled to be
indemnified. In addition, the Company may enter into one or more agreements with any
person providing for indemnification greater or different from that provided in the
Bylaws. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the Bylaws, if a claim for indemnification is not paid in full by the Company within
ninety days after a written claim pursuant to the preceding paragraph has been received by
the Company, the claimant may at any time thereafter bring suit against the Company to
recover the unpaid amount of the claim and, if successful in whole or in part, the
claimant will be entitled to be paid also the expense of prosecuting such claim. The
Bylaws provide that it will be a defense to any such action (other than an action brought
to enforce a claim for expenses incurred in defending any proceeding in advance of its
final disposition where the required undertaking, if any is required, has been tendered to
the Company) that the claimant has not met the standard of conduct which makes it
permissible under the Kansas General Corporation Code for the Company to indemnify the
claimant for the amount claimed, but the burden of proving such defense will be on the
Company. Neither the failure of the Company (including the directors, independent legal
counsel or stockholders) to have made a determination prior to the commencement of such
action that indemnification of the claimant is proper in the circumstances because he or
she has met the applicable standard of conduct set forth in the Kansas General Corporation
Code, nor an actual determination by the Company (including the directors, independent
legal counsel or stockholders) that the claimant has not met such applicable standard of
conduct, will be a defense to the action or create a presumption that the claimant has not
met the applicable standard of conduct. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Bylaws provide that the right to indemnification and the payment of expenses incurred in
defending a proceeding in advance of its final disposition conferred in the Bylaws will
not be exclusive of any other right which any person may have or may in the future acquire
under any statute, provision of the Articles of Incorporation, the Bylaws, agreement, vote
of stockholders or disinterested directors or otherwise. The Bylaws permit the Company to
maintain insurance, at its expense, to protect itself and any director, officer, employee
or agent of the Company or another corporation, partnership, joint venture, trust or other
enterprise against any expense, liability or loss, whether or not the Company would have
the power to indemnify such person against such expense, liability or loss under the
Kansas General Corporation Code. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section 13 (e) of the Stock Incentive Plan of 2004 provides members of the Committee and any
officer or employee of the Company or a subsidiary acting at the direction or on behalf of
the Committee shall not be personally liable for any action or determination taken or made
in good faith with respect to the Plan, and shall, to the extent permitted by law, be
fully indemnified, held harmless and protected by the Company with respect to any such
action or determination. Accordingly, members of the Committee and officers acting at
their direction or on their behalf are entitled to indemnification and reimbursement as
directors pursuant to the Company&#146;s bylaws or any agreement between the Company and
its directors providing for indemnification. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company currently has directors and officers&#146; liability insurance that insures
directors and officers of the Company with respect to claims made for alleged
&#147;wrongful acts&#148; in their roles as directors or officers of the Company and its
subsidiaries. The insurance also insures the Company for claims against the Company&#146;s
directors or officers in situations in which the Company has an obligation to indemnify
its directors and officers. </FONT></P>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Item 7. Exemption from Registration Claimed. </FONT></H1>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Not applicable. </FONT></P>


<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
3</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>


<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Item 8. Exhibits. </FONT></H1>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=8>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
4.1 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Articles of Incorporation of the Company, as amended (incorporated by reference to
Exhibit 3 of the Company's Report on Form 10-Q for the quarter ended September 30,
2002 (File No. 0-17196)).
</FONT></TD></TR>

<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
4.2 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Bylaws of the Company (Incorporated by reference to Exhibit 3.2 of the Company&#146;s
Annual Report on Form 10-K for the fiscal year ended June 30, 1989))
</FONT></TD></TR>

<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
*4.3 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Stock Incentive Plan of 2004
</FONT></TD></TR>

<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
*5 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Opinion of Counsel as to legality of the obligations being registered hereby.
</FONT></TD></TR>

<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
*23.1 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Consent of BKD LLP
</FONT></TD></TR>

<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
*23.2 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Consent of Counsel (included in the opinion filed as Exhibit 5 to this
Registration Statement).
</FONT></TD></TR>

<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
*24 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Powers of Attorney executed by officers and directors of the Company who have
signed the Registration Statement.
</FONT></TD></TR>
</TABLE>

<BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_________________ <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Filed herewith</FONT></P>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Item 9. Undertakings. </FONT></H1>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby undertakes: </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%>&nbsp;&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement: </FONT></TD></TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%>&nbsp;&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp;&nbsp;to include any prospectus required by Section 10(a)(3)
of the Securities Act of 1933; </FONT></TD></TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%>&nbsp;&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(ii)&nbsp;&nbsp;&nbsp;&nbsp;to reflect in the prospectus any facts or events
arising after the effective date of the Registration Statement (or the most
recent post-effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in the
Registration Statement; </FONT></TD></TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%>&nbsp;&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(iii)&nbsp;&nbsp;&nbsp;&nbsp;
to include any material information with respect to the plan of distribution not
previously disclosed in the Registration Statement or any material change to
such information in the Registration Statement. </FONT></TD></TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Provided, however,</I> that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the information
required to be included in a post-effective amendment by those paragraphs is contained in
periodic reports filed with or furnished to Commission by the Company pursuant to Section
13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by
reference in this Registration Statement; </FONT></TD></TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%>&nbsp;&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
That, for the purpose of determining any liability under the Securities Act of
1933, each post-effective amendment shall be deemed to be a new Registration
Statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial <I>bona fide</I>
offering thereof. </FONT></TD></TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=10%>&nbsp;&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the
offering. </FONT></TD></TR>
</TABLE>
<BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned Company hereby undertakes that, for purposes of determining any
liability under the Securities Act of 1933, each filing of the Company&#146;s
annual report pursuant to Section 13(a) or Section 15(d) of the Securities
Exchange Act of 1934 (and where applicable, each filing of an employee benefit
plan&#146;s annual report pursuant to Section 15(d) of the Securities Exchange
Act of 1934) that is incorporated by reference in this Registration Statement
shall be deemed to be a new Registration Statement relating to the securities
offered therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Insofar as indemnification for liabilities arising under the Securities Act of
1933 may be permitted to directors, officers, and controlling persons of the
Company pursuant to the foregoing provisions, or otherwise, the Company has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification (other
than the payment by the Company of expenses</FONT></P>


<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
4</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
incurred or paid by a director,
officer or controlling person of the Company in the successful defense of any
action, suit or proceeding) is asserted by such director, officer, or
controlling person in connection with the securities being registered, the
Company will, unless in the opinion of its counsel the matter has been settled
by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of such
issue. </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
SIGNATURES </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Act of 1933, the Company certifies that it has
reasonable grounds to believe that it meets all of the requirements for filing on Form S-8
and has duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in Atchison, Kansas, on the 20th day of October,
2004. </FONT></P>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
MGP INGREDIENTS, INC.</B></FONT></TD></TR>
</TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
By:</FONT></TD>
<TD WIDTH="45%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
/s/ Laidacker M. Seaberg<BR>
Name: Laidacker M. Seaberg<BR>
Title: President</FONT></TD></TR>
</TABLE>
<BR><BR><BR><BR>

<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
5</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement
has been signed below by the following persons in the capacities and on the dates
indicated: </FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">

<U><B>Name</B></U> </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
<U><B>Title</B></U> </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
<U><B>Date</B></U> </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
/s/ Laidacker M. Seaberg* </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
President (Principal </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
October 20, 2004 </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Laidacker M. Seaberg </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Executive Officer) and Director </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
/s/ Brian Cahill* </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Vice President and Treasurer </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
October 20, 2004 </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Brian Cahill </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
(Principal Financial and </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Accounting Officer) </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
/s/ Michael Braude* </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Director </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
October 20, 2004 </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Michael Braude </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
/s/ John E. Byom* </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Director </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
October 20, 2004 </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
John E. Byom </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
/s/ Cloud L. Cray, Jr.* </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Director </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
October 20, 2004 </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Cloud L. Cray, Jr. </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
/s/ Michael R. Haverty* </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Director </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
October 20, 2004 </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Michael R. Haverty </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
/s/ Linda E. Miller* </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Director </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
October 20, 2004 </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Linda E. Miller </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
/s/ Randy M. Schrick* </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Director </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
October 20, 2004 </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Randy M. Schrick </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
/s/ Daryl R. Schaller* </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Director </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
October 20, 2004 </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Daryl R. Schaller </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
/s/ John R. Spiers* </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Director </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
October 20, 2004 </FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
John R. Spiers </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD></TR>
</TABLE>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Brian Cahill, by signing his name hereto, does hereby sign this Registration Statement
on behalf of each of the above referenced directors and officers pursuant to powers
of attorney executed by each of such persons and filed herewith as Exhibit 24. </FONT></P>

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
*By <BR>
/s/ Brian Cahill*<BR>
Brian Cahill<BR>
Attorney-in-Fact</FONT></P>


<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
6</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>


<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
EXHIBIT LIST </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
4.1 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Articles of Incorporation of the Company, as amended (incorporated by reference to Exhibit
3 of the Company&#146;s Report on Form 10-Q for the quarter ended September 30, 2002 (File
No. 0-17196)) </FONT></TD></TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
4.2 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Bylaws of the Company (Incorporated by reference to Exhibit 3.2 of the Company&#146;s
Annual Report on Form 10-K for the fiscal year ended June 30, 1989)) </FONT></TD>
</TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
*4.3 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Stock Incentive Plan of 2004</FONT></TD></TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
*5 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Opinion of Counsel as to legality of the obligations being registered hereby
</FONT></TD></TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
*23.1 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Consent of BKD LLP</FONT></TD></TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
*23.2 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Consent of Counsel (included in the opinion filed as Exhibit 5 to this Registration Statement)
</FONT></TD></TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
*24 </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Powers of Attorney executed by officers and directors of the Company who have signed the Registration
Statement</FONT></TD></TR></TABLE>
<BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_________________ <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Filed herewith</FONT></P>
<BR><BR><BR><BR><BR><BR>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
7</FONT></P>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>exhibit5.htm
<DESCRIPTION>EXHIBIT 5
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 5</TITLE>
</HEAD>
<BODY>

<H1 ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
EXHIBIT 5</FONT></H1><BR>

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
October 20, 2004 </FONT></P>

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
MGP Ingredients, Inc.<BR>
1300 Main Street <BR>
Atchison, Kansas 66002 </FONT></P>

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Ladies and Gentlemen: </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have acted as counsel for MGP Ingredients, Inc., a Kansas corporation, in connection with
the registration, pursuant to a registration statement on Form S-8 (the &#147;Registration
Statement&#148;), of up to 980,000 shares of the Company&#146;s Common Stock, no par value
(the &#147;Shares&#148;), of the Company for use in connection with the Company&#146;s
Stock Incentive Plan of 2004 (the &#147;Plan&#148;). Capitalized terms used but not
defined herein shall have the meanings ascribed to such terms in the Registration
Statement. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection therewith, we have examined the originals, or certified, conformed or
reproduction copies of: </FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="8">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
(i)</FONT></TD>
<TD WIDTH="80%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
resolutions of the Board of Directors;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
(ii)</FONT></TD>
<TD WIDTH="80%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
the Registration Statement;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
(iii)</FONT></TD>
<TD WIDTH="80%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
the Plan;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
(iv)</FONT></TD>
<TD WIDTH="80%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
the Amended and Restated Certificate of Incorporation of the Company; and
</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
(v)</FONT></TD>
<TD WIDTH="80%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
the Bylaws of the Company</FONT></TD></TR>
</TABLE>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have also made such other factual and legal investigations as we have deemed necessary and
appropriate in order to render the opinions hereinafter expressed. In such examinations,
we have assumed the genuineness of all signatures, the authenticity of all documents
submitted to us as originals and the conformity to original documents of all documents
submitted to us as certified copies or photocopies. As to any facts material to the
opinion set forth below which were not independently established or verified, we have
relied upon statements and representations of officers and other representatives of the
Company and others. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based upon the foregoing, and subject to the limitations, qualifications and assumptions set
forth herein, we are of the opinion that: </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(1)&nbsp;&nbsp;the Plan has been duly adopted by the Company; </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(2)&nbsp;&nbsp;upon the exercise of stock options and issuance of shares of Common Stock
underlying such stock options, in accordance with the terms of the Plan, and
delivery of such shares to the purchasers thereof against payment of the
exercise price therefor, the shares will be validly issued, fully paid and
nonassessable; </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(3)&nbsp;&nbsp;upon the end of any vesting period, in the case of grants of restricted stock,
and the satisfaction of performance measures, in the case of performance awards,
and the issuance of shares of Common Stock underlying such grants, in accordance
with the terms of the Plan, and the delivery of such shares to the grantees
thereof upon satisfaction of the conditions to such delivery, such shares will
be validly issued, fully paid and nonassessable; and </FONT></P>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(4)&nbsp;&nbsp;the Plan is not subject to the provisions of the Employee Retirement Income
Security Act of 1974. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We hereby consent to the filing of this opinion as an exhibit to the Registration Statement
and to all references to the undersigned in the Registration Statement and all amendments
thereto. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The opinion set forth in this letter is effective as of the date hereof. No expansion of this
opinion may be made by implication or otherwise. We express no opinion other than as
herein expressly set forth. The opinion expressed herein is solely for your benefit and
may not be relied upon in any manner or for any purpose by any other person or entity. It
may not be quoted in whole or in part without our prior written consent. </FONT></P>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="60%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Very truly yours,<BR>
&nbsp;&nbsp;<BR>
&nbsp;&nbsp;<BR>
&nbsp;&nbsp;<BR>
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="60%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
/s/ Lathrop &amp; Gage L.C.</FONT></TD></TR>
</TABLE>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>exhibit23_1.htm
<DESCRIPTION>EXHIBIT 23.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 23.1</TITLE>
</HEAD>
<BODY>

<H1 ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
EXHIBIT 23.1</FONT></H1>
<BR><BR><BR><BR><BR><BR><BR><BR><BR><BR>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </FONT></H1>
<BR><BR>

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
The Audit Committee and Board of Directors <BR>
MGP Ingredients, Inc. <BR>
Atchison, Kansas </FONT></P>
<BR><BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
We consent to the incorporation by reference on Registration Statement Form S-8
and in the related Prospectuses, of MGP Ingredients, Inc. relating to its Stock
Incentive Plan of 2004, of our report dated July&nbsp;30, 2004, on our audit of
the consolidated balance sheets of MGP Ingredients, Inc. as of June 30, 2004 and
2003, and the related consolidated statements of income, stockholders&#146; equity
and cash flows for each of the three years in the period ended June 30, 2004,
which report is incorporated by reference in the Annual Report on Form 10-K
of MGP Ingredients, Inc. for the fiscal year ended June 30, 2004, and of our report dated
July 30, 2004, with regard to the financial statement schedule that is included in such
Form 10-K for the year ended June 30, 2004. </FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="60%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
/s/ BKD, LLP
</FONT></TD></TR>
</TABLE><BR><BR>

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Kansas City, Missouri <BR>
October 19, 2004 </FONT></P>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>exhibit24.htm
<DESCRIPTION>EXHIBIT 24
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 24</TITLE>
</HEAD>
<BODY>

<H1 ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
EXHIBIT 24</FONT></H1>
<BR>
<H1 ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
POWER OF ATTORNEY</FONT></H1>
<BR>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and
appoints Brian Cahill as his or her true and lawful attorney-in-fact and agent, with full
power of substitution and in his or her place and stead in any and all capacities, to sign
a registration statement on Form S-8 with respect to MGP Ingredients, Inc.&#145;s Stock
Incentive Plan of 2004 (including post effective amendments) to such registration
statement, and to file the same, with all exhibits thereto and other documents in
connection therewith, with the Securities and Exchange Commission, granting unto said
attorney-in-fact and agent, full power and authority to do and perform each and every act
and thing requisite or necessary to be done in and about the premises to perfect and
complete such filing(s), as fully to all intents and purposes as he or she might or could
do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or
his substitute or substitutes, may lawfully do or cause to be done by virtue hereof. </FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="40%">
<FONT FACE="Times New Roman, Times, Serif" SIZE="3">
<U><B>Name</B></U></FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
<U><B>Title</B></U></FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
<U><B>Date</B></U></FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
/s/ Laidacker M. Seaberg</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
President (Principal</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
October 14, 2004</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Laidacker M. Seaberg</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Executive Officer) and Director</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
/s/ Brian Cahill</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Vice President and Treasurer</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
October 14, 2004</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Brian Cahill</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
(Principal Financial and</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Accounting Officer)</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
/s/ Michael Braude</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Director</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
October 14, 2004</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Michael Braude</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
/s/ John E. Byom</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Director</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
October 14, 2004</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
John E. Byom</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
/s/ Cloud L. Cray, Jr.</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Director</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
October 14, 2004</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Cloud L. Cray, Jr.</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
/s/ Michael R. Haverty</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Director</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
October 14, 2004</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Michael R. Haverty</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
/s/ Linda E. Miller</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Director</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
October 14, 2004</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Linda E. Miller</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
/s/ Randy M. Schrick</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Director</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
October 14, 2004</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Randy M. Schrick</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
/s/ Daryl R. Schaller</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Director</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
October 14, 2004</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Daryl R. Schaller</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
/s/ John R. Spiers</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
Director</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
October 14, 2004</FONT></TD></TR>

<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
John R. Spiers</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD></TR>
</TABLE>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>5
<FILENAME>exhibit4_3.htm
<DESCRIPTION>EXHIBIT 4.3
<TEXT>
<HTML>
<HEAD>
<TITLE>STOCK INCENTIVE PLAN</TITLE>
</HEAD>
<BODY>

<H1 ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Exhibit 4.3 </FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
MGP INGREDIENTS, INC. <BR>
STOCK INCENTIVE PLAN OF 2004 </FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Table of Contents </FONT></H1>



<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3"><U>
Section</U></FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3"><U>
Page</U></FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
1.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
PURPOSES</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
2</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
2.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
DEFINITIONS</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
2</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
3.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
GRANTS OF STOCK INCENTIVES</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
4</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
4.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
STOCK SUBJECT TO THE PLAN</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
5</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
5.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
STOCK AWARDS</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
6</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
6.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
STOCK OPTIONS</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
7</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
7.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
STOCK APPRECIATION RIGHTS</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
8</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
8.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
PERFORMANCE AWARDS</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
8</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
9.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
TERMINATION OR SUSPENSION OF EMPLOYMENT</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
9</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
10.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
ADJUSTMENT PROVISIONS</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
11</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
11.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
CHANGE IN CONTROL; SALE OF SUBSIDIARY</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
12</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
12.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
TERM</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
13</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
13.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
ADMINISTRATION</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
13</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
14.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
GENERAL PROVISIONS</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
15</FONT></TD></TR></TABLE><BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
<TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
15.</FONT></TD>
<TD WIDTH="85%"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
AMENDMENT OR DISCONTINUANCE OF PLAN</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
18</FONT></TD></TR></TABLE><BR>
<BR><BR><BR><BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-1</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
MGP INGREDIENTS, INC. <BR>
STOCK INCENTIVE PLAN OF 2004 </FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
1. PURPOSES. </FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The purpose of this Stock Incentive Plan of 2004 (the &#147;Plan&#148;) is to aid MGP
Ingredients, Inc., a Kansas corporation (the &#147;Company&#148;), in attracting,
retaining, motivating and rewarding employees who provide substantial services to the
Company or its Subsidiaries, to provide for equitable and competitive compensation
opportunities, to recognize individual contributions and reward achievement of Company
goals, and to promote the creation of long-term value for stockholders by closely aligning
the interests of Participants with those of stockholders. </FONT></P>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
2. DEFINITIONS. </FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless otherwise required by the context, the following terms, when used in the Plan, shall have
the meanings set forth in this Section 2: </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Award Agreement:</B> Any written agreement, contract, or other instrument or document evidencing
any Stock Incentive, which may, but need not, be executed or acknowledged by a
Participant. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Board of Directors or Board:</B>  The Board of Directors of the Company. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Change in Control:</B>  A Change in Control shall mean: </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp;The acquisition (other than from the Company) by any person, entity or
&#147;group,&#148; within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act, (excluding, for this purpose, the Company or its subsidiaries, any
employee benefit plan of the Company or its subsidiaries, trustees of the Cray
Family Trust, or any person who acquires Common or Preferred Stock from Cloud L.
Cray, Jr. or from any trust controlled by or for the benefit of Cloud L. Cray,
Jr. prior to or as a result of his death) of beneficial ownership, (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of at least 30% of the
then outstanding shares of Common Stock and 50% of the then outstanding shares
of Preferred Stock or 30% of the combined voting power of the Company&#146;s
then outstanding voting securities entitled to vote generally in the election of
directors; or </FONT></TD></TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(ii)&nbsp;&nbsp;&nbsp;Individuals who, as of the date hereof, constitute the Board (as of the date
hereof the &#147;Incumbent Board&#148;) cease for any reason to constitute at
least a majority of the Board, provided that any person becoming a director
subsequent to the date hereof whose election, or nomination for election by the
Company&#146;s stockholders, was approved by a vote of at least a majority of
the directors then comprising the Incumbent Board (other than an election or
nomination of an individual whose initial assumption of office is in connection
with an actual or threatened election contest relating to the election of the
Directors of the Company) shall be, for purposes of this Plan, considered as
though such person were a member of the Incumbent Board; or </FONT></TD></TR>
</TABLE><BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(iii)&nbsp;&nbsp;&nbsp;Approval by the stockholders of the Company of a reorganization, merger,
consolidation, in each case, with respect to which persons who were the
stockholders of the Company immediately prior to such reorganization, merger or
consolidation do not, immediately thereafter, own collectively as a group more
than 50% of the combined voting power entitled to vote generally in the election
of directors of the reorganized, merged or consolidated company&#146;s then
outstanding voting securities, or a liquidation or dissolution of the Company or
of the sale of all or substantially all of the assets of the Company. </FONT></TD></TR>
</TABLE><BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If any of the events enumerated in clauses (i) through (iii) occur, the Board shall determine
the effective date of the Change in Control resulting therefrom, for purposes of the Plan. </FONT>
</TD></TR></TABLE>
<BR>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Code:</B> The  Internal  Revenue  Code of  1986 as now or  hereafter  amended.
References  to any  provision  of the  Code or regulation (including a proposed regulation)
thereunder shall include any successor provisions and regulations.</FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-2</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Committee:</B> The Human Resources and Compensation Committee of the Board of Directors of the Company or
any other committee the Board may subsequently appoint to administer the Plan pursuant to
Section 13 hereof, each member of which shall be a Qualified Member. No action of the
Committee shall be void or deemed to be without authority due to the failure of any
member, at the time the action was taken, to be a Qualified Member. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Common Stock:</B> The Common Stock of the Company, no par value, or such other class of shares or
other securities as may be subject to the Plan as the result of an adjustment made
pursuant to the provisions of Section 10. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Company:</B>  MGP Ingredients, Inc., a Kansas corporation. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Covered Employee:</B>  An Eligible Person who is a Covered Employee as specified in Section 14(o).
 </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Disability: </B>The inability of a Participant to perform substantially such Participant&#146;s duties
and responsibilities due to a physical or mental condition that would entitle such
Participant to benefits under the Company&#146;s Long-Term Disability Plan in effect at
the time or, if no such plan is in effect, such condition as would enable the Participant
to receive an award for permanent and total disability from the Social Security
Administration. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Eligible Person: </B>A salaried, full-time employee of the Company or any Subsidiary, including any
executive officer (whether or not also a director of the Company), and any such person who
has been offered employment by the Company or a Subsidiary, provided that such prospective
employee may not receive any payment or exercise any right relating to a Stock Incentive
until such person has commenced employment with the Company or a Subsidiary. An employee
on leave of absence may be considered as still in the employ of the Company or Subsidiary
for purposes of eligibility for participation in the Plan. For purposes of the Plan, a
joint venture in which the Company or a Subsidiary has a substantial direct or indirect
equity investment shall be deemed a Subsidiary, if so determined by the Committee. Stock
Incentives may be made to Eligible Persons whether or not they have received prior awards
under the Plan or under any previously adopted plan, and whether or not they are
participants in other benefit plans of the Company or any other Subsidiary. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Exchange Act:</B>  The Securities Exchange Act of 1934, as amended. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Executive Officer:</B> At any time, an individual who is an executive officer of the Company within
the meaning of Exchange Act Rule 3b-7 as promulgated and interpreted by the SEC under the
Exchange Act, or any successor rule or regulation thereto as in effect from time to time,
or who is an officer of the Company within the meaning of Exchange Act rule 16a-1(f) as
promulgated and interpreted by the SEC under the Exchange Act, or any successor rule or
regulation thereto as in effect from time to time. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Fair Market Value:</B> The fair market value of a share of Common Stock on the date as of which
fair market value is to be determined shall be: (a) if the Common Stock is reported on the
NASDAQ National Market System of the National Association of Securities Dealers, Inc., the
last reported sales price of a share of Common Stock as reported by NASDAQ; or (b) if the
Common Stock is listed on an established securities exchange or exchanges, the highest
reported closing price of a share of Common Stock on such exchange or exchanges. The fair
market value of the Common Stock if not so reported or listed and the fair market value of
any other property on the date as of which fair market value is to be determined shall
mean the fair market value as determined by the Committee in its sole discretion. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Incentive Compensation:</B> Bonuses, extra and other compensation payable in addition to a salary or
other base amount, whether contingent or not, whether discretionary or required to be paid
pursuant to an agreement, resolution, arrangement, plan or practice, and whether payable
currently or on a deferred basis, in cash, Common Stock or other property. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Incentive Stock Option:</B> A stock option which satisfies the requirements of Section 422 of the
Code. None of the Options granted under the Plan is intended to be an Incentive Stock
Option. </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-3</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Mature Stock</B>: Previously-acquired shares of Common Stock for which the holder thereof has
good title, free and clear of all liens and encumbrances and which such holder either
(i)&nbsp;has held for at least six months or (ii)&nbsp;has purchased on the open market. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Non-Qualified Stock Option:</B> A right to purchase Common Stock from the Company that is granted under
Section 6 of the Plan. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Option:</B> An option to purchase shares of Common Stock or, where the context so requires, the
instrument which evidences such an option. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Participant:</B>  Any Eligible Person selected by the Committee to receive a Stock Incentive under the Plan.
</FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Performance Award</B>: A conditional right, granted to a Participant under Section 8, to a Stock Award
or other Stock Incentive, as determined by the Committee, based upon performance criteria
specified by the Committee. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Plan:</B>  The Stock Incentive Plan of 2004 herein set forth as the same may from
time to time be amended. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Qualified Member: </B>A member of the Committee who is a &#147;Non-Employee Director&#148; within
the meaning of Rule 16b-3(b)(3) and an &#147;outside director&#148; within the meaning of
Regulation 1.162-27 under Code Section 162(m). </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Retirement: </B>Retirement at or after the attainment of age 62. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Stock Appreciation Right:</B> A right to receive a number of shares of Common Stock, cash, or a
combination of the two based on the increase in the Fair Market Value of shares of Common
Stock subject to an Option, as set forth in Section 7 of the Plan. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Stock Award:</B> An issuance or transfer of shares of Common Stock at the time a Stock Incentive
is granted or as soon thereafter as practicable, or an undertaking to issue or transfer
such shares in the future, including, without limitation, such an issuance, transfer or
undertaking with respect to a Stock Incentive that is contingent, in whole or in part,
upon the attainment of a specified objective or objectives. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Stock Incentive:</B>  A stock incentive granted under the Plan in one of the forms authorized in Section 3.
</FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Subsidiary:</B> A corporation or other form of business association of which shares (or other ownership
interests) having 50% or more of the voting power are owned or controlled, directly or
indirectly, by the Company. </FONT></P>

<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
3. GRANTS OF STOCK INCENTIVES.</FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;<U>Persons Eligible to Participate</U>. Subject to the provisions of the Plan,
the Committee may at any time grant Stock Incentives under the Plan to, and only
to, Eligible Persons. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;<U>Forms of Stock Incentives</U>. Stock Incentives may be granted in the
following forms: </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;a Stock Award, in accordance with Section 5, or </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(ii)&nbsp;&nbsp;a Stock Option, in accordance with Section 6, or </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(iii)&nbsp;&nbsp;a Stock Appreciation Right, in accordance with Section 7, or </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(iv)&nbsp;&nbsp;a Performance Award in accordance with Section 8, or </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(v)&nbsp;&nbsp;a combination of any of the foregoing. </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-4</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;<U>Award Agreements</U>. Each Stock Incentive shall be evidenced by a written
          Award Agreement in a form prescribed by the Committee that is consistent with
          this Plan, that shall be delivered to the Participant and that shall specify the
          terms and conditions of the Stock Incentive and any rules applicable thereto.
          The Committee may impose on any Stock Incentive or the exercise thereof, at the
          date of grant or thereafter (subject to Section&nbsp;15(a) ), such additional
          terms and conditions, not inconsistent with the provisions of the Plan, as the
          Committee shall determine. The Committee shall retain full power and discretion
          with respect to any term or condition of a Stock Incentive that is not mandatory
          under the Plan. The Committee shall require the payment of lawful consideration
          for a Stock Incentive to the extent necessary to satisfy the requirements of the
          Kansas General Corporations Act, and may otherwise require payment of
          consideration for a Stock Incentive except as limited by the Plan. Award
          Agreements may be executed on behalf of the Company and the Plan by any
          Executive Officer of the Company or such other officer of the Company as the
          Committee shall designate. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;<U>Amendments</U> <U>of Award Agreements</U>. Subject to the terms of the Plan,
          the Committee may from time to time authorize the amendment of outstanding Award
          Agreements so long as such amendments are consistent with the Plan; provided,
          that any such amendment that would adversely affect the rights of any
          Participant or any holder or beneficiary of any Stock Incentive theretofore
          granted shall not to that extent be effective without the consent of the
          affected Participant, holder or beneficiary. The Committee may not reprice (as
          defined in Section 15(a)) any Stock Option which has been awarded to a
          Participant without stockholder approval. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;<U>Timing</U> <U>of Payment under Stock Incentives; Deferrals.</U> Subject to
          the terms of the Plan and any applicable Award Agreement, payments to be made by
          the Company or Subsidiary upon the exercise of an Option or other Stock
          Incentive or settlement of a Stock Incentive may be made in a single payment or
          transfer, in installments, or on a deferred basis. Installment or deferred
          payments may be required by the Committee (subject to Section&nbsp;15(a)) or
          permitted at the election of the Participant on terms and conditions established
          by the Committee. </FONT></P>

<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
4. STOCK SUBJECT TO THE PLAN.</FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;<U>Number of Shares Available</U>. Subject to the provisions of clause (b) of
          this Section 4 and Section 10, the number of shares of Common Stock that may be
          issued under the Plan for Stock Incentives during the term of the Plan is nine
          hundred eighty thousand (980,000). </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;<U>Share Counting Rules.</U> If any shares of Common Stock subject to a Stock
          Incentive shall not be issued or transferred or shall cease to be issuable or
          transferable under such Stock Incentive, or if, after issuance or transfer, any
          such shares shall be reacquired by the Company or Subsidiary because of a
          Participant&#146;s failure to comply with or meet the terms and conditions of a
          Stock Incentive, such shares may again be made subject to Stock Incentives; and
          only the net additional shares issued upon the exercise or vesting of a Stock
          Incentive through the delivery or withholding of shares of Common Stock in
          payment of the exercise price or withholding taxes shall be counted against the
          number of shares which are authorized for issuance under this paragraph. The
          limitation provided for in this paragraph shall also be increased by the number
          of shares subject to any substitute Stock Incentives granted under Section
          14(k). Notwithstanding the foregoing, shares shall be deemed to have been issued
          pursuant to a Stock Option or Stock Award and shall be charged against the
          limitation provided for in this paragraph, whether actually delivered, to the
          extent of the number of shares covered by that portion of the related Stock
          Option or Stock Award granted under the Plan which is settled by the exercise of
          a Stock Appreciation Right or by a cash payment under a Stock Award. The
          foregoing notwithstanding, shares shall not become available under this Section
          4(b) in an event that would constitute a &#147;material amendment&#148; of the
          Plan subject to stockholder approval under then applicable NASDAQ Marketplace
          Rules. Because shares will count against the number reserved in Section 4(a)
          upon delivery, and subject to the share counting rules under this Section 4(b),
          the Committee may determine that Stock Incentives may be outstanding that relate
          to a greater number of shares than the aggregate remaining available under the
          Plan, so long as Stock Incentives will not result in delivery and vesting of
          shares in excess of the number then available under the Plan. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;<U>Use of Treasury and Other Shares</U>. Subject to the requirements of
          applicable Kansas law, authorized but unissued shares of Common Stock and shares
          of Common Stock held in the treasury, whether acquired by the Company
          specifically for use under the Plan or otherwise, may be used, as the Board of
          Directors may from time to time determine, for purposes of the Plan; provided,
          however, that any shares acquired or held by the Company for the purposes of the
          Plan shall, unless and until transferred to a Participant in accordance with the
          terms and </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-5</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
conditions of a Stock Incentive, be and at all times remain treasury
shares of the Company, available for any corporate purpose, irrespective of
whether such shares are entered in a special account for purposes of the Plan. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;<U>Certain Limitations on Grants</U>. Notwithstanding any provision herein to
          the contrary, and subject to adjustment as provided in Section 10, to the extent
          necessary for an award to be qualified performance based compensation under
          Section 162(m) of the Code, the maximum aggregate number of shares of Common
          Stock issuable under any Stock Incentives awarded to any individual with respect
          to any fiscal year of the Company shall be 100,000 shares or equivalents
          thereof. In addition, subject to other provisions of the Plan permitting the
          expiration of restrictions under certain circumstances, unless otherwise
          determined by the Committee the Stock Awards or Performance Awards granted under
          Section 5 or 8 will be subject to a vesting period of one year from the date of
          grant in the case of such Stock Incentives that are performance based and three
          years from the date of grant in the case of such Stock Incentives under Section
          5 that are not performance based; provided, however, that such Stock Incentives
          may vest, in whole or in part, on an accelerated basis in the event of a
          Participant&#146;s death, Disability, Retirement, or in the event of a Change in
          Control or other special circumstances, including involuntary termination
          without cause, in the sole discretion of the Committee. In its discretion, the
          Committee may provide for vesting periods of longer or shorter duration that the
          one or three year periods referred to above. For purposes of this Section 4(d),
          (i) a period that precedes the grant of the Stock Incentive will be treated as
          part of the vesting or performance period if the participant has been notified a
          reasonable time after the commencement of the period that he or she has the
          opportunity to earn the Stock Incentive based on performance and/or continued
          service, and (ii) vesting over a vesting period may include periodic vesting
          over such period if the rate of such vesting is proportional (or less rapid)
          throughout such period. </FONT></P>

<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
5. STOCK AWARDS.</FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stock Incentives in the form of Stock Awards shall be subject to the following provisions: </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;<U>General</U>. A Stock Award shall be granted only (i) in payment of Incentive
          Compensation that has been earned, (ii) as Incentive Compensation to be earned,
          or (iii) a combination of (i) and (ii). </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;<U>Valuation</U>. For the purposes of the Plan, in determining the value of a
          Stock Award, all shares of Common Stock subject to such Stock Award shall be
          valued at not less than 100% of the Fair Market Value of such shares on the date
          such Stock Award is granted, regardless of whether or when such shares are
          issued or transferred to the Participant and whether or not such shares are
          subject to restrictions which affect their value. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;<U>Grant</U>. Shares of Common Stock subject to a Stock Award may be issued or
          transferred to a Participant at the time the Stock Award is granted, or at any
          time subsequent thereto, or in installments from time to time, as the Committee
          shall determine. With respect to a Stock Award providing for issuance or
          transfer of shares subsequent to the time it is granted, the Committee may
          provide for payment to the grantee of amounts equal to the cash dividends which
          would have been payable in respect of such shares (as adjusted under Section 10
          of the Plan) if they had been issued or transferred at the time the Stock Award
          was granted. Such payments may be made in cash, shares of Common Stock or a
          combination of cash and shares. Such payments may be made at the time the shares
          are issued or transferred, or at the time or times the cash dividends would have
          been payable if the shares had been issued or transferred at the time the Stock
          Award was granted. A Stock Award may provide that if such payments are made at
          the time shares are issued or transferred, there also will be paid interest on
          any deferred dividend amounts, with respect to the number of shares of Common
          Stock subject to such award, if any. Any amount payable in shares of Common
          Stock under the terms of the Stock Award may be paid in cash on each date on
          which delivery of shares would otherwise have been made, in an amount equal to
          the Fair Market Value on such date of the shares which would otherwise have been
          delivered. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;<U>Terms Relating to Transfer, Payment or Forfeiture</U>. A Stock Award may
          contain such other terms and conditions as the Committee may determine with
          respect to transfer, payment or forfeiture of all or any part of the Stock
          Award. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;<U>Other Terms</U>. A Stock Award may be subject to such other terms and
          conditions, including, without limitation, restrictions on sale or other
          disposition of the shares issued or transferred pursuant to the Stock Award, as
          the Committee may determine; provided, however, that upon the issuance or
          transfer of shares pursuant to a Stock </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-6</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Award, the recipient shall, with respect
to such shares, be and become a stockholder of the Company fully entitled to
receive dividends, to vote and to exercise all other rights of a stockholder
except to the extent otherwise provided in the Stock Award. </FONT></P>

<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
6. STOCK OPTIONS.</FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stock Incentives granted under the Plan in the form of Stock Options shall be Non-Qualified
Stock Options and shall be subject to the following provisions: </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a) <U>Grant</U>. Subject to the provisions of the Plan, including those contained
          in this Section 6, the Committee shall have the sole and complete authority to
          determine the Eligible Persons to whom Options shall be granted, the number of
          shares of Common Stock to be covered by each Option, the option price therefor
          and the conditions and limitations applicable to the exercise of the Option. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b) <U>Date of Grant</U>. The &#147;Date of Grant&#148; of an Option shall be the
          date the action of the Committee providing for the grant of the Option is taken,
          or such later date as the Committee may provide. An amendment to the terms of an
          existing Option shall not constitute the grant of a new Option except to the
          extent that the amendment increases the number of shares subject to the Option
          other than as the result of an amendment effected pursuant to the adjustment
          provisions of the Plan. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c) <U>Price</U>. The price at which shares of Common Stock may be purchased under
          an Option (the &#147;Option Price&#148;) shall be specified in the Option and
          shall be not less than 100% of the Fair Market Value of such stock on the Date
          of Grant of the Option. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d) <U>Term</U>. An Option shall be exercisable only during a term (the &#147;Term
          of the Option&#148; or &#147;Term&#148;) commencing not sooner than six months
          and one day after the Date of Grant of the Option and ending (unless the Option
          shall have terminated earlier under other provisions of the Plan) on a date
          fixed by the Committee and stated in the Option, which date shall not be later
          than the tenth anniversary of the Date of Grant. If an Option is granted for an
          original Term of less than ten years, the Committee may, at any time prior to
          the expiration of the Option, extend its Term for a period ending not later than
          the tenth anniversary of the Date of Grant of the Option. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e) <U>Installments</U>. An Option may provide that it shall be exercisable in full
          or in part at any time during the Term of the Option, or that it shall be
          exercisable in a specified series of installments. Unless otherwise provided in
          the Option, installments or portions thereof not exercised in earlier periods
          shall be cumulative and shall be available for exercise in later periods. The
          Committee may, by so providing in an Option, require any partial exercise
          thereof to be with respect to a specified minimum number of shares. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f) <U>Exercise</U>. To the extent that the right to purchase shares has accrued
          under an Option, the Option may be exercised from time to time by the optionee
          or by a person or persons entitled to exercise the Option, by delivery to the
          Company of a written notice, in the manner and in such form as may be prescribed
          by the Committee, stating the number of shares with respect to which the Option
          is being exercised, and by making provision satisfactory to the Company for the
          payment in full of the Option price of the shares prior to or in connection with
          the delivery of certificates evidencing the shares. In this regard, no
          certificate representing Common Stock shall be delivered until (x) the full
          purchase price therefor has been paid (or arrangement made for such payment to
          the Company&#146;s satisfaction), either in (A) cash (which includes certified
          bank or cashier&#146;s checks or money orders), (B) Mature Stock having an
          aggregate Fair Market Value, determined as of the date of exercise, equal to the
          aggregate purchase price payable by reason of such exercise, or (C) by a
          combination of (A) and (B); and (y) full payment of any withholding taxes
          thereon required by the Company to be paid (or arrangements made for such
          payment to the Company&#146;s satisfaction). Upon receipt of such notice and
          payment, the Company shall deliver to or upon the order of the optionee, or such
          other person entitled to exercise the Option, at the corporate headquarters of
          the Company, or at such place as shall be mutually acceptable, a certificate or
          certificates evidencing such shares. An Option may not be exercised for
          fractional shares of Common Stock. The Committee may, in its discretion and at
          the request of the optionee, upon receipt in cash (as described above) of the
          exercise price and upon the provision of the amount of any taxes required to be
          withheld, issue shares directly to a brokerage firm selected by the optionee to
          whom the optionee has submitted an irrevocable notice of exercise in accordance
          with Regulation T of the Board of Directors of the Federal Revenue Board. </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-7</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(g) <U>No Stockholder Rights Prior to Exercise</U>. No person shall have any rights
          of a stockholder by virtue of an Option except with respect to shares actually
          issued to him, and issuance of shares shall not confer retroactive rights to
          dividends. </FONT></P>

<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
6. STOCK APPRECIATION RIGHTS.</FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a) <U>Grant</U>. Stock Appreciation Rights may be granted in connection with any
          Option granted under the Plan, either at the time of the grant of such Option or
          at any time thereafter during the term of the Option. A grant of Stock
          Appreciation Rights shall either be included in the instrument evidencing the
          Option to which they relate or evidenced by a separate instrument meeting the
          requirements of Section 3 of the Plan. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b) <U>Settlement</U>. A person entitled to exercise an Option in connection with
          which Stock Appreciation Rights shall have been granted shall be entitled, at
          such time or times and subject to such terms and conditions as may be stated in
          the granting instrument, to settle all or part of the Option by requesting the
          Company to pay, in cancellation of the part of the Option to be settled,
          consideration in an amount equal to the number of shares of Common Stock subject
          to the canceled part of the Option times the amount by which the fair market
          value of one share on the exercise date exceeds the Option Price (the
          &#147;Appreciation&#148;). The election shall be made in a written instrument,
          in form satisfactory to the Committee, delivered in the manner prescribed in
          Section 6 for the exercise of options. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c) <U>Form of Consideration</U>. The form of the consideration to be paid for the
          Appreciation shall either be cash, shares of Common Stock having an aggregate
          market value on the exercise date equal to the Appreciation, or a combination of
          cash and shares. Such form of consideration shall be specified either by the
          Committee or, subject to the approval of the Committee, by the person exercising
          the Stock Appreciation Right, provided that such form of consideration shall in
          no event include fractional shares of Common Stock. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d) <U>Other Terms</U>. An Option in connection with which Stock Appreciation Rights
          are granted may prescribe or limit the period or periods of time during which
          the Stock Appreciation Rights may be exercised as provided in paragraph (b) of
          this Section 7, and may prescribe such additional terms and conditions
          applicable to the exercise of the Stock Appreciation Rights as may be determined
          by the Committee and as are consistent with the Plan. In no event may Stock
          Appreciation Rights be exercised at a time when the Option in connection with
          which they were granted is not exercisable. </FONT></P>

<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
8. PERFORMANCE AWARDS.</FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a) <U>Performance Awards Generally</U>. The Committee is authorized to grant
          Performance Awards on the terms and conditions specified in this Section&nbsp;8.
          Performance Awards may be denominated as a Stock Award or other Stock Incentive
          (or a combination) which may be earned or vest upon achievement or satisfaction
          of performance conditions specified by the Committee. The Committee may use such
          business criteria and other measures of performance as it may deem appropriate
          in establishing any performance conditions. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b) <U>Performance Awards Granted to Covered Employees</U>. If the Committee
          determines that a Performance Award to be granted to an Eligible Person who is
          designated by the Committee as likely to be a Covered Employee should qualify as
          &#147;performance-based compensation&#148; for purposes of Code
          Section&nbsp;162(m), the Committee shall designate the Performance Award as an
          &#147;Award to Covered Employee&#148; and the grant, exercise, vesting and/or
          settlement of such Performance Award shall be contingent upon achievement of a
          pre-established performance goal and other terms set forth in this
          Section&nbsp;8(b). </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)  <U>Performance Goal Generally</U>. The performance goal for such Performance
          Awards shall consist of one or more business criteria and a targeted level or
          levels of performance with respect to each of such criteria, as specified by the
          Committee consistent with this Section&nbsp;8(b). The performance goal shall be
          objective and shall otherwise meet the requirements of Code Section&nbsp;162(m)
          and regulations thereunder (including Regulation 1.162-27 and successor
          regulations thereto), including the requirement that the level or levels of
          performance targeted by the Committee result in the achievement of performance
          goals being &#147;substantially uncertain.&#148; The Committee may determine
          that such Performance Awards shall be granted, </FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-8</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
exercised, vest and/or settled upon achievement of any one performance goal or
that two or more of the performance goals must be achieved as a condition to grant, exercise, vesting
and/or settlement of such Performance Awards. Performance goals may differ for
Performance Awards granted to any one Participant or to different Participants.
</FONT></TD></TR>
</TABLE><BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(ii) <U>Business Criteria</U>. One or more of the following business criteria for the
Company, on a consolidated basis, and/or for specified Subsidiaries or other
business units of the Company, shall he used by the Committee in establishing
performance goals for such Performance Awards: (1)&nbsp;net sales;
(2)&nbsp;income from operations; (3) income before taxes; (4) income before
interest, taxes, depreciation, amortization, incentives, service fees and/or
extraordinary or special items; (5)&nbsp;net income or net income per common
share (basic or diluted); (6)&nbsp;return on assets, return on investment,
return on capital, or return on equity; (7)&nbsp;cash flow from operations, free
cash flow (cash flow from operations less capital expenditures) or cash flow
return on invested capital; (8)&nbsp;stock price or total stockholder return;
and (9)&nbsp;strategic business criteria, consisting of one or more objectives
based on meeting specified market penetration, geographic business expansion
goals, cost targets, customer satisfaction, employee satisfaction, management of
employment practices and employee benefits, and goals relating to acquisitions
or divestitures of subsidiaries, affiliates or joint ventures. The targeted
level or levels of performance with respect to such business criteria may be
established at such levels and in such terms as the Committee may determine, in
its discretion, including in absolute terms, as a goal relative to performance
in prior periods, or as a goal compared to the performance of one or more
comparable companies or an index covering multiple companies. </FONT></P></TD>
</TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(iii) <U>Performance Period; Timing for Establishing Performance Goals</U>.
Achievement of performance goals in respect of such Performance Awards shall be
measured over a performance period specified by the Committee. A performance
goal shall be established not later than the earlier of (A)&nbsp;90 days after
the beginning of any performance period applicable to such Performance Award or
(B)&nbsp;the time 25% of such performance period has elapsed. </FONT></TD>
</TR></TABLE>
<BR>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c) <U>Settlement of Performance Awards; Other Terms</U>. Settlement of Performance
Awards shall be in Stock Awards or other Stock Incentives, in the discretion of
the Committee. The Committee may, in its discretion, increase or reduce the
amount of a settlement otherwise to be made in connection with such Performance
Awards, but may not exercise discretion to increase any such amount payable to a
Covered Employee in respect of an Award to Covered Employee subject to
Section&nbsp;8(b). </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d) <U>Written Determinations</U>. Determinations by the Committee as to the
establishment of performance goals, the amount potentially payable in respect of
Performance Awards, the level of actual achievement of the specified performance
goals relating to Performance Awards, and the amount of any final Performance
Award shall be recorded in writing in the case of any Award to Covered Employee
intended to qualify under Section&nbsp;162(m). Specifically, the Committee shall
certify in writing, in a manner conforming to applicable regulations under
Section&nbsp;162(m), prior to settlement of each such Performance Award granted
to a Covered Employee, that the performance objective relating to the
Performance Award and other material terms of such Award upon which settlement
of the Award was conditioned have been satisfied. </FONT></P>

<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
9. TERMINATION OR SUSPENSION OF EMPLOYMENT.</FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following provisions shall apply in the event of the Participant&#146;s termination of
employment unless the Committee shall have provided otherwise, either at the time of the
grant of the Stock Incentive or thereafter: </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a) <U>Stock Options and Stock Appreciation Rights</U>. </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(i) <U>Termination of Employment Other than Due to Death, Disability, Cause or
Retirement</U>. If the Participant&#146;s employment with the Company or its
Subsidiaries is terminated for any reason other than death, Disability, cause
due to misconduct or Retirement, the Participant&#146;s right to exercise any
Stock Option and related Stock Appreciation Right will terminate one year after
the cessation of employment, unless the Option or Right terminates earlier by
its terms or under other provisions of the Plan. Until the </FONT></TD></TR>
</TABLE>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-9</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Option or Right terminates, it may be exercised by the optionee, his estate or legal
representatives for all or a portion of the shares as to which the right of
purchase had accrued under the Plan at the time of cessation of employment,
subject to all applicable conditions and restrictions provided in the Plan and
the Option. In no event shall an Option or Right be exercisable later than the
date of expiration of the term of the Option or Right, and in no event shall an
Option or Right be exercisable for any shares as to which the right of purchase
had not accrued at the time of cessation of employment. Employment for the
purposes of this paragraph shall mean continuous full-time salaried employment.
Vacations, sick leaves and any approved absence on leave shall not constitute a
termination of employment or an interruption of continuous full-time salaried
employment. </FONT></TD></TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(ii) <U>Disability or Retirement</U>. If the Participant&#146;s employment with the
Company or its Subsidiaries is terminated by Disability or Retirement, any Stock
Option or Stock Appreciation Right held by such Participant shall terminate on
the earlier of (i) the third anniversary of such termination of employment, or
(ii) the date the Option or Right would have otherwise expired by its terms had
it not been for such termination of employment. Until the Option terminates, it
may be exercised by the optionee, his estate or legal representatives, for all
or a portion of the shares as to which the right of purchase had accrued as of
the date of such exercise, subject to all applicable conditions and restrictions
provided in the Plan and the Option or Right. In no event shall such Option or
Right be exercisable later than the date of expiration of the term of the Option
or Right, and in no event shall such Option or Right be exercisable for any
shares as to which the right of purchase had not accrued at the time of
exercise. </FONT></TD></TR>
</TABLE><BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(iii) <U>Death</U>. If the Participant&#146;s employment with the Company or its
Subsidiaries is terminated by death, and if any Stock Option or Stock
Appreciation Right was in effect at the time of his death (whether or not its
terms had then commenced), the Option or Right may, until the expiration of one
year from the date of death of the Participant or until the earlier expiration
of the term of the Option or Right, be exercised as and to the extent it could
have been exercised by the Participant had he been living at the time of
exercise, by the legal representatives of the Participant or by any person,
persons or entity to whom his rights under the Option or Right shall have been
transferred pursuant to the provisions of paragraph (h) of Section 14 of the
Plan. Such exercise shall not be limited to the shares as to which the right of
purchase had accrued at the date of death of the Participant, but shall be
subject to all applicable conditions and restrictions prescribed in the Plan and
the Option or Right, including any installment provision. </FONT></TD>
</TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(iv) <U>Acceleration and Extension of Exercisability</U>. The Committee may, in its
discretion, provide (A) that a Stock Option or Stock Appreciation Right granted
to a Participant may terminate at a date earlier than that set forth above; (B)
that a Stock Option or Stock Appreciation Right granted to a participant not
subject to Section 16 of the Exchange Act may terminate at a date later than
that set forth above, provided such date shall not be beyond the date the option
or right would have expired had it not been for the termination of the
Participant&#146;s employment. </FONT></TD></TR>
</TABLE><BR>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b) <U>Stock Awards and Performance Awards that are not designated as an Award to
          Covered Employee</U>. Unless otherwise determined by the Committee, if the
          employment of the Participant with the Company or a Subsidiary terminates by
          reason of Disability, death, Retirement or, in the sole discretion of the
          Committee, involuntary termination of employment without cause, any restrictions
          and provisions for forfeiture on such Participant&#146;s outstanding Stock
          Awards shall automatically expire, any performance goals with respect to
          Performance Awards will be deemed to have been satisfied at the target level on
          the date the Committee determines that the performance goal has been met and the
          Participant will be entitled to a prorated award. Such prorated award will be
          equal to the number of Stock Awards or other Stock Incentives that would have
          been awarded (in the case of Performance Awards, at the target level) multiplied
          by a fraction, the numerator of which shall equal the number of months such
          Participant was employed by the Company during the vesting or performance
          period, as applicable (fractional months shall be counted as full months) and
          the denominator of which shall equal the number of months in the vesting or
          performance period, as applicable. Unless the Committee determines otherwise, if
          the employment of the Participant with the Company or a Subsidiary terminates
          for any other reason, the portion of such award which is subject to performance
          goals or other vesting requirement on the effective date of such
          Participant&#146;s termination of employment shall be immediately forfeited and
          canceled by the Company. </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-10</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c) <U>Performance Awards that are an Award to Covered Employee</U>. Unless
          otherwise determined by the Committee, if the employment of the Participant with
          the Company or a Subsidiary terminates by reason of Disability or death, any
          performance goals with respect to Performance Awards will be deemed to have been
          satisfied at the target level on the date the Committee determines that the
          performance goal has been met and the Participant will be entitled to a prorated
          award. Such prorated award will be equal to the number of Stock Awards or other
          Stock Incentives that would have been awarded at the target level multiplied by
          a fraction, the numerator of which shall equal the number of months such
          Participant was employed by the Company during the performance period
          (fractional months shall be counted as full months), and the denominator of
          which shall equal the number of months in the performance period. Unless the
          Committee determines otherwise, if the employment of the Participant with the
          Company or a Subsidiary terminates for any other reason, the portion of such
          award which is subject to performance goals on the effective date of such
          Participant&#146;s termination of employment shall be immediately forfeited and
          canceled by the Company. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d) <U>Termination for Cause</U>. Notwithstanding the other provisions hereof, a
          Stock Incentive granted to a Participant shall expire and the Participant shall
          thereupon forfeit all rights thereunder if the Participant is terminated for
          cause due to the misconduct of the Participant. The Committee shall, in its sole
          discretion, determine whether a termination was for cause due to misconduct. </FONT></P>

<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
10. ADJUSTMENT PROVISIONS</FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a) <U>Adjustments to Shares and Price</U>. In the event that any large, special and
          non-recurring dividend or other distribution (whether in the form of cash or
          property other than Common Stock), recapitalization, stock split or reverse
          stock split, stock dividend, reorganization, merger, consolidation, spin-off,
          combination, repurchase, share exchange, liquidation. dissolution or other
          similar corporate transaction or event affects the Common Stock such that an
          adjustment is determined by the Committee to be appropriate under the Plan, then
          the Committee may, in such manner as it may deem equitable, adjust any or all of
          (i)&nbsp;the number and kind of shares of stock which may be delivered in
          connection with Stock Incentives granted thereafter; (ii)&nbsp;the number and
          kind of shares of stock by which annual per-person Stock Incentive limitations
          are measured under Section&nbsp;4(d); (iii)&nbsp;the number and kind of shares
          of stock subject to or deliverable in respect of outstanding Stock Incentives;
          and (iv)&nbsp;the exercise price, grant price, purchase price or other terms
          (including performance goals) relating to any Stock Incentive or, if deemed
          appropriate, the Committee may make provision for a payment of cash or property
          to the holder of an outstanding Option (subject to Section&nbsp;14(n)).The
          Committee may also determine that new Stock Incentives be substituted for any
          unexpired corresponding Stock Incentives then outstanding, such adjustments to
          be made in the case of outstanding Stock Options without an increase in the
          aggregate purchase price. The decision of the Committee regarding any such
          adjustment or substitution shall be final, binding and conclusive. If any such
          adjustment would result in a fractional security being (i)&nbsp;available under
          this Plan, such fractional security shall be disregarded, or (ii)&nbsp;subject
          to an award under this Plan, the Company shall pay the holder of such award, in
          connection with the first vesting, exercise or settlement of such award in whole
          or in part occurring after such adjustment, an amount in cash determined by
          multiplying (x)&nbsp;the fraction of such security (rounded to the nearest
          hundredth) by (y)&nbsp;the excess, if any, of (A)&nbsp;the Fair Market Value on
          the vesting, exercise or settlement date over (B)&nbsp;the exercise or base
          price, if any, of such award. The Company shall be obligated to, and therefore
          the Committee shall, provide for such equitable adjustments of outstanding Stock
          Incentives in order to preserve the positive intrinsic value of such Stock
          Incentives, unless in the circumstances the Participant would be able to realize
          such intrinsic value in the absence of an adjustment. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b) <U>Other Adjustments</U>. In addition, the Committee is authorized to make
          adjustments in the terms and conditions of, and the criteria included in, Stock
          Incentives (including Performance Awards and performance goals and any
          hypothetical funding pool relating thereto) in recognition of unusual or
          nonrecurring items or events (including, without limitation, events described in
          the preceding sentence, as well as acquisitions and dispositions of businesses
          and assets) affecting the Company or any subsidiary or other business unit, or
          the financial statements of the Company or any subsidiary, or in response to
          changes in applicable laws, regulations, accounting principles, tax rates and
          regulations or business conditions, or in view of the Committee&#146;s
          assessment of the business strategy of the Company, any subsidiary or business
          unit thereof, performance of comparable organizations, economic and business
          conditions, personal performance of a Participant and any other circumstances
          deemed relevant; provided that no such adjustment shall be authorized or made if
          and to the extent that the existence of such authority (i)&nbsp;would cause
          Options, Stock Appreciation Rights, or Performance Awards granted under
          Section&nbsp;8 to Participants designated by </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-11</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>


<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
the Committee as Covered Employees
and intended to qualify as &#147;performance-based compensation&#148; under Code
Section&nbsp;162(m) and regulations thereunder to otherwise fail to qualify as
&#147;performance-based compensation&#148; under Code Section&nbsp;162(m) and
regulations thereunder; or (ii)&nbsp;would cause the Committee to be deemed to
have authority to change the targets, within the meaning of Treasury Regulation
1.162-27(e)(4)(vi), under the performance goals relating to Options, Stock
Appreciation Rights or Performance Awards granted to Covered Employees and
intended to qualify as &#147;performance-based compensation&#148; under Code
Section&nbsp;162(m) and regulations thereunder. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee may also unilaterally amend outstanding Stock Incentives to remove restrictions
or otherwise change the terms of outstanding Stock Incentives to permit such incentives to
be substituted for comparable incentives to be provided by any entity which assumes the
obligations with respect to such outstanding Stock Incentives upon terms and conditions
approved by the Board of Directors or Stockholders. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c) <U>Committee Action Binding on all Persons</U>. The action of the Committee in
          approving any adjustment or change contemplated by this Section 10 shall be
          conclusively deemed to be equitable, appropriate, fair and/or comparable and
          shall be binding on all persons holding rights under the Plan. </FONT></P>

<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
11. CHANGE IN CONTROL; SALE OF SUBSIDIARY. </FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a) <U>Change in Control</U>. Unless the Committee shall otherwise provide in the
          Award Agreement relating to a Stock Incentive granted under the Plan, upon the
          occurrence of a Change in Control: </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(i) <U>Vesting of Stock Incentive</U>. Any Stock Incentive carrying a right to
exercise that was not previously exercisable and vested shall become fully
exercisable and vested as of the time of the Change in Control; and </FONT></TD>
</TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(ii) <U>Committee Power to Permit Cash Election</U>. The Committee may, in its
discretion, determine to extend to any Participant who holds an Option the right
to elect, during the 60-day period immediately following the Change in Control,
in lieu of acquiring the shares of Common Stock covered by such Option, to
receive in cash the excess of the Change in Control Price over the exercise
price of such Option, multiplied by the number of shares of Stock covered by
such Option, and to extend to any Participant who holds other types of Stock
Incentives denominated in shares the right to elect, during the 60-day period
immediately following the Change in Control, in lieu of receiving the shares of
Stock covered by such Stock Incentive, to receive in cash the Change in Control
Price multiplied by the number of shares of Stock covered by such Stock
Incentive. In addition, the Committee may provide that Options and Stock
Appreciation Rights shall be subject to a mandatory cash-out in lieu of
accelerated vesting. </FONT></TD>
</TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(iii) <U>Stock Awards</U>. Any restrictions and provisions for forfeiture on all
outstanding Stock Awards shall automatically expire and immediately lapse and
all such awards shall be immediately and fully vested. </FONT></TD>
</TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(iv) <U>Performance Awards</U>. Each Grantee of a Performance Award for a performance
period that has not been completed at the time of the Change in Control shall be
deemed to have earned a Performance Award as of the time of such Change in
Control equal to such Participant&#146;s target award opportunity for such
Performance Award. </FONT></TD></TR>
</TABLE><BR>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b) <U>Definition of &#147;Change in Control Price</U>.&#148; The &#147;Change in
Control Price&#148; means an amount in cash equal to the higher of (i)&nbsp;the
amount of cash and fair market value of property that is the highest price per
share of Common Stock paid (including extraordinary dividends) in any
transaction triggering the Change in Control or any liquidation of shares
following a sale of substantially all assets of the Company, or (ii)&nbsp;the
highest Fair Market Value per share at any time during the 60-day period
preceding and 60-day period following the Change in Control. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c) <U>Sale of Subsidiary</U>. Unless the Committee shall otherwise provide in the
Award Agreement relating to a Stock Incentive granted under the Plan, in the
event that the Company sells or otherwise disposes of substantially all the
assets of, or a majority interest in, a Subsidiary, then any and all Options and
Stock Appreciation Rights granted under the Plan to employees of the affected
Subsidiary shall be immediately exercisable in full, any restrictions and
 </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-12</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
provisions for forfeiture on all outstanding Stock Awards held by employees of
the affected Subsidiary shall automatically expire and immediately lapse and all
such awards shall be immediately and fully vested, and each employee of the
affected subsidiary who holds a Performance Award for a performance period that
has not been completed at the time of the sale or other disposition shall be
deemed to have earned a Performance Award as of the time of such sale or
disposition equal to such Participant&#146;s target award opportunity for such
Performance Award. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d) <U>Other Powers</U>. The Committee in its discretion and at any time may take
such additional action as it deems appropriate to address the effect of a Change
in Control or the sale or disposition of a Subsidiary on awards issued under
this Plan. Without limitation, the Committee may determine that any Stock
Options or Stock Appreciation Rights not exercised prior to a Change in Control
or the sale or other disposition of a Subsidiary, or within such period of time
thereafter (not to exceed 120 days) as the Committee shall determine, shall
terminate. </FONT></P>

<H1 ><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
12. TERM. </FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a) <U>Effective Date</U>. The Plan shall become effective when approved by the
holders of a majority of the shares of the Company&#146;s Common Stock and by
the holders of a majority of the shares of the Company&#146;s Preferred Stock,
present or represented and entitled to vote at a meeting duly held in accordance
with applicable law. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b) <U>Expiration Date</U>. No Stock Incentive shall be granted under the Plan after
October 14, 2014. Unless otherwise expressly provided in the Plan or in an
applicable Award Agreement, any Stock Incentive granted hereunder may, and the
authority of the Board or the Committee to amend, alter, adjust, suspend,
discontinue, or terminate any such Stock Incentive or to waive any conditions or
rights under any such Stock Incentive shall, continue after the authority for
grant of new Stock Incentive hereunder has been exhausted. </FONT></P>

<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
13. ADMINISTRATION.</FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a) <U>Committee</U>. The Plan shall be administered by the Committee which shall
consist of not less than three directors of the Company designated by the Board
of Directors; provided, however, that no director shall be designated as a
member of the Committee unless such director shall at the time of designation be
a Qualified Member. At anytime that a member of the Committee is not a Qualified
Member, any action of the Committee relating to a Stock Incentive intended by
the Committee to qualify as &#147;performance-based compensation&#148; within
the meaning of Code Section&nbsp;162(m) and regulations thereunder or intended
to be covered by an exemption under Rule 16b-3 under the Exchange Act may be
taken by a subcommittee, designated by the Committee or the Board, composed
solely of two or more Qualified Members or may be taken by the Committee but
with each such member who is not a Qualified Member abstaining or recusing
himself or herself from such action, provided that, upon such abstention or
recusal, the Committee remains composed of two or more Qualified Members. Such
action, authorized by such a subcommittee or by the Committee upon the
abstention or recusal of such non-Qualified Member(s), shall be the action of
the Committee for purposes of the Plan. The express grant of any specific power
to the Committee, and the taking of any action by the Committee, shall not be
construed as limiting any power or authority of the Committee. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b) <U>Delegation by the Board</U>. The Board of Directors, by adoption of the Plan,
delegates to the Committee all of its authority under the Plan, including the
authority to award Stock Incentives, but excluding the authority to amend or
discontinue the Plan. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c) <U>Authority of the Committee</U>. </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(i) Subject to the terms of the Plan and applicable law, and in addition to other
express powers and authorizations conferred on the Committee by the Plan, the
Committee shall have full power and authority to: (A) designate Participants;
(B) determine the type or types of Stock Incentive to be granted to an eligible
employee; (C) determine the number of shares of Common Stock to be covered by,
or with respect to which payments, rights, or other matters are to be calculated
in connection with, Stock Incentives; (D) determine the terms and conditions of
any Stock Incentive; (E) determine whether, to what extent, and under what
circumstances Stock Incentives may be settled or exercised in cash, shares of
Common Stock, other securities, other Stock Incentives or other property, or
canceled, forfeited, or</FONT></TD></TR></TABLE>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-13</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
suspended; (F) determine whether, to what extent, and
under what circumstances cash, shares of Common Stock, other securities, other
Stock Incentives, other property, and other amounts payable with respect to a
Stock Incentive shall be deferred either automatically or at the election of the
holder thereof or of the Committee; (G) interpret and administer the Plan and
any instrument or agreement relating to, or Stock Incentive granted under, the
Plan; (H) establish, amend, suspend, or waive such rules and regulations and
appoint such agents as it shall deem appropriate for the proper administration
of the Plan; and (I) make any other determination and take any other action that
the Committee deems necessary or desirable for the administration of the Plan. </FONT></TD>
</TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(ii) Unless prohibited by the Plan, the Committee may, in its sole discretion and for
any reason at any time, take action such that (i)&nbsp;any or all outstanding
Stock Options or Stock Appreciation Right shall become exercisable in part or in
full, (ii)&nbsp;all or a portion of the vesting period applicable to any
outstanding Stock Award shall lapse, (iii)&nbsp;all or a portion of the
performance period applicable to any outstanding Performance Award shall lapse,
and (iv)&nbsp;the performance goals applicable to any outstanding award (if any)
shall be deemed to be satisfied at the maximum or any other level.
Notwithstanding the foregoing, except as to Committee action in the event of the
Participant&#146;s death or Disability or a Change in Control or as provided in
Section 10, no award designated as an Award to a Covered Employee may be
amended, nor may the Committee exercise any discretionary authority it may
otherwise have under this Plan with respect to an award designated as an Award
to a Covered Employee under this Plan, in any manner to waive the achievement of
the applicable performance goal, or to increase the amount payable pursuant
thereto or the value thereof, or otherwise in a manner that would cause an award
designated as an Award to a Covered Employee to cease to qualify for the
exemption from the limitation on deductibility under Section 162(m) of the Code.
Notwithstanding that performance goals may be achieved, the Committee may
determine, in its discretion, whether and the extent to which an award
designated as an Award to a Covered Employee, as defined under Code Section
162(m), will be paid. </FONT></TD></TR>
</TABLE><BR>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d) <U>Committee Discretion Binding</U>. Unless otherwise expressly provided in the
          Plan, all designations, determinations, interpretations, and other decisions
          under or with respect to the Plan or any Stock Incentive shall be within the
          sole discretion of the Committee, may be made at any time and shall be final,
          conclusive, and binding upon all persons, including the Company, any Subsidiary,
          any Participant, any holder or beneficiary of any Stock Incentive, any
          stockholder and any employee. The Committee&#146;s determination under the Plan
          including, without limitation, determination of the persons to receive awards,
          the form, amount and type of awards, the terms and provisions of awards and the
          written material evidencing such awards, any amendments to the terms and
          provisions of any awards, and the granting or rejecting of applications for
          delivery of shares of Common Stock need not be uniform and may be made
          selectively among otherwise eligible persons whether or not such persons are
          similarly situated. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e) <U>Limitation of Liabilit<I></I></U><I>y</I>. The Committee and each member
          thereof, and any person acting pursuant to authority delegated by the Committee,
          shall be entitled, in good faith, to rely or act upon any report or other
          information furnished by any executive officer, other officer or employee of the
          Company or a subsidiary or affiliate, the Company&#146;s independent auditors,
          consultants or any other agents assisting in the administration of the Plan.
          Members of the Committee, any person acting pursuant to authority delegated by
          the Committee, and any officer or employee of the Company or a subsidiary or
          affiliate acting at the direction or on behalf of the Committee or a delegee
          shall not be personally liable for any action or determination taken or made in
          good faith with respect to the Plan, and shall, to the extent permitted by law,
          be fully indemnified, held harmless and protected by the Company with respect to
          any such action or determination. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f) <U>Delegat</U>i<U>on</U>. Subject to the terms of the Plan and applicable law,
          the Committee may delegate to one or more officers or managers of the Company or
          any Subsidiary, or to a committee of such officers or managers, the authority,
          subject to such terms and limitations as the Committee shall determine, to grant
          Stock Incentives to, or to cancel, modify or waive rights with respect to, or to
          alter, discontinue, suspend, or terminate Stock Incentives held by, Participants
          who are not officers or directors of the Company for purposes of Section 16 of
          the Exchange Act, or any successor section thereto, or who are otherwise not
          subject to such Section. </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-14</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
14. GENERAL PROVISIONS.</FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a) <U>No Rights to Participation or Employment</U>. No person shall have any right
          to participation in this Plan. Nothing in the Plan or in any instrument executed
          pursuant thereto shall confer upon any Participant any right to continue in the
          employ of the Company or a Subsidiary or shall affect the right of the Company
          or of a Subsidiary to terminate the employment of any Participant with or
          without cause. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b) <U>Restrictions on Shares</U>. Each Stock Incentive made hereunder shall be
          subject to the requirement that if at any time the Company determines that the
          listing, registration or qualification of the shares of Common Stock subject to
          such Stock Incentive upon any securities exchange or under any law, or the
          consent or approval of any governmental body, or the taking of any other action
          is necessary or desirable as a condition of, or in connection with, the vesting,
          exercise or settlement of such Stock Incentive or the delivery of shares
          thereunder, such Stock Incentive shall not vest, be exercised or settled and
          such shares shall not be issued or delivered unless such listing, registration,
          qualification, consent, approval or other action shall have been effected or
          obtained, free of any conditions not acceptable to the Company. In addition, the
          Committee may condition the grant of a Stock Incentive on compliance with
          certain listing, registration or other qualifications applicable to the Stock
          Incentive under any law or any obligation to obtain the consent or approval of a
          governmental body. The Company may require that certificates evidencing shares
          of Common Stock delivered pursuant to any Stock Incentive made hereunder bear a
          legend indicating that the sale, transfer or other disposition thereof by the
          holder is prohibited except in compliance with the Securities Act of 1933, as
          amended, and the rules and regulations thereunder. The Company shall not be
          obligated by virtue of any terms and conditions of any Stock Incentive or any
          provisions of the Plan to recognize the exercise of a Stock Option or to sell or
          issue shares in violation of the Securities Act or the law of any government
          having jurisdiction thereof. Any postponement or delay by the Company in
          recognizing the exercise of any Stock Option or in issuing any shares under a
          Stock Award or otherwise hereunder shall not extend the term of a Stock Option
          nor shorten the term of any restriction period or vesting period attached to any
          Stock Award or other award and neither the Company nor its directors or officers
          shall have any obligation or liability to the holder of a Stock Incentive or to
          any other person with respect to any shares as to which a Stock Option or other
          award shall lapse because of such postponement or as to which issuance under a
          Stock Award or other Stock Incentive was delayed. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c) <U>No Rights as Stockholder</U>. Subject to the provisions of the applicable
          Stock Incentive, no Participant (individually or as a member of a group), and no
          beneficiary or other person claiming under or through him, shall have any right,
          title or interest in or to any shares of Common Stock allocated or reserved for
          the purposes of the Plan or subject to any Stock Incentive, except as to such
          shares of Common Stock, if any, as shall have been issued or transferred to him. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d) <U>Grants of Awards to Future Employees</U>. The Company or a Subsidiary may,
          with the approval of the Committee, enter into an agreement or other commitment
          to grant a Stock Incentive in the future to a person who is or will be at the
          time of grant an Eligible Person, and, notwithstanding any other provision of
          the Plan, any such agreement or commitment shall not be deemed the grant of a
          Stock Incentive until the date on which the Committee takes action to implement
          such agreement or commitment, which date shall for the purpose of the Plan be
          the date of grant. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e) <U>Implementation of Stock Incentives by Subsidiaries</U>. In the case of a
          grant of a Stock Incentive to any employee of a Subsidiary, such grant may, if
          the Committee so directs, be implemented by the Company issuing or transferring
          the shares, if any, covered by the Stock Incentive to the Subsidiary, for such
          lawful consideration as the Committee may specify, upon the condition or
          understanding that the Subsidiary will transfer the shares to the employee in
          accordance with the terms of the Stock Incentive. Notwithstanding any other
          provision hereof, such Stock Incentive may be issued by and in the name of the
          Subsidiary and shall be deemed granted on the date it is approved by the
          Committee or on such later date as the Committee shall specify. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f) <U>Withholding and Payment of Taxes</U>. The Company or a Subsidiary may make
          such provisions as it may deem appropriate for the withholding of any taxes
          which the Company or Subsidiary determines it is permitted or required to
          withhold in connection with any Stock Incentive. Such provisions may include a
          requirement that all or part of the amount of such taxes be paid to the Company
          or Subsidiary, in cash, at the time of settlement and may permit the Company to
          withhold an amount of cash, if any, which would otherwise be payable to a
          Participant, including withholding from wages or other cash compensation or
          awards otherwise due to the Participant, under this </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-15</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>


<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Plan or otherwise, in the
amount necessary to satisfy any such obligation. In the discretion of the
Committee such provisions may also permit the payment of such taxes by the
Company through the withholding of shares of Common Stock to be issued under a
Stock Incentive, either on a mandatory or elective basis, or the delivery of
shares of Mature Stock owned by the Participant (either actual delivery or by
attestation procedures established by the Company), in any such case having an
aggregate Fair Market Value, determined as of the date the obligation to
withhold or pay taxes arises in connection with a Stock Incentive, not exceeding
the Company&#146;s minimum statutory withholding amount, based on the
Company&#146;s minimum statutory withholding rates for federal and state tax
purposes, including payroll taxes, that are applicable to the taxable income
resulting from the Stock Incentive. Any fraction of a share of Common Stock
which would be required to satisfy such an obligation shall be disregarded and
the remaining amount due shall be paid in cash by the holder. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(g) <U>Required Consent to and Notification of Code Section&nbsp;83(b) Election.</U>
          No election under Section&nbsp;83(b) of the Code (to include in gross income in
          the year of transfer the amounts specified in Code Section&nbsp;83(b)) or under
          a similar provision of the laws of a jurisdiction outside the United States may
          be made unless expressly permitted by the terms of the Award Agreement or by
          action of the Committee in writing prior to the making of such election. In any
          case in which a Participant is permitted to make such an election in connection
          with a Stock Incentive, the Participant shall notify the Company of such
          election within ten days of filing notice of the election with the Internal
          Revenue Service or other governmental authority, in addition to any filing and
          notification required pursuant to regulations issued under Code
          Section&nbsp;83(b) or other applicable provision. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(h) <U>Non-transferability</U>. Except with the Committee&#146;s prior approval, (i)
          no Stock Incentive and no rights under a Stock Incentive or under the Plan,
          contingent or otherwise, shall, by operation of law or otherwise, be
          transferable or assignable or subject to any encumbrance, pledge, hypothecation
          or charge of any nature, or to execution, attachment or other legal process,
          except that, in the event of the death of the Participant, the
          Participant&#146;s rights under the Stock Incentive may pass, as provided by
          law, to the legal representatives of the Participant, and such legal
          representatives may transfer any rights in respect of such Stock Incentive to
          the person or persons or entity (including a trust) entitled thereto under the
          will of Participant, or in the case of intestacy, under the applicable laws
          relating to intestacy, and (ii) during the life of a Participant, the Stock
          Incentive shall be exercisable only by such Participant. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i) <U>Other Compensation</U>. Nothing in the Plan is intended to be a substitute
          for, or shall preclude or limit the establishment or continuation of, any other
          plan, practice or arrangement for the payment of compensation or fringe benefits
          to employees generally, or to any class or group of employees, which the Company
          or any Subsidiary now has or may hereafter lawfully put into effect, including,
          without limitation, any retirement, pension, profit-sharing, insurance, stock
          purchase, incentive compensation or bonus plan. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(j) <U>Place of Administration</U>. The place of administration of the Plan shall
          conclusively be deemed to be within the State of Kansas and the validity,
          construction, interpretation and administration of the Plan and of any rules and
          regulations or determinations or decisions made thereunder, and the rights of
          any and all persons having or claiming to have any interest therein or
          thereunder, shall be governed by and be determined exclusively and solely in
          accordance with, the laws of the State of Kansas. Without limiting the
          generality of the foregoing, the period within which any action arising under or
          in connection with the Plan, or any payment or award made or purportedly made
          under or in connection therewith, must be commenced, shall be governed by the
          laws of the State of Kansas, irrespective of the place where the act or omission
          complained of took place and of the residence of any party to such action and
          irrespective of the place where the action may be brought. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(k) <U>Substitute Options</U>. Stock Incentives may be granted under the Plan from
          time to time in substitution for stock incentives held by employees of other
          corporations who are about to become employees of the Company or a Subsidiary as
          the result of a merger or consolidation of the employing corporation with the
          Company or a Subsidiary, or the acquisition by the Company or a Subsidiary of
          the assets of the employing corporation, or the acquisition by the Company or a
          Subsidiary of stock of the employing corporation as the result of which it
          becomes a Subsidiary. The terms and conditions of the substitute options so
          granted may vary from the terms and conditions set forth in this Plan to such
          extent as the Committee at the time of grant may deem appropriate to conform, in
          whole or in part, to the provisions of the stock incentives in substitution for
          which they are granted. </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-16</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(l) <U>Unfunded Status of Awards; Creation of Trusts</U>. The Plan is intended to
          constitute an &#147;unfunded&#148; plan for incentive and deferred compensation.
          With respect to any payments not yet made to a Participant or obligation to
          deliver Common Stock pursuant to a Stock Incentive, nothing contained in the
          Plan or any Award Agreement shall give any such Participant any rights that are
          greater than those of a general creditor of the Company; provided that the
          Committee may authorize the creation of trusts and deposit therein cash, Common
          Stock, other Stock Incentives or other property, or make other arrangements to
          meet the Company&#146;s obligations under the Plan. Such trusts or other
          arrangements shall be consistent with the &#147;unfunded&#148; status of the
          Plan unless the Committee otherwise determines with the consent of each affected
          Participant. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(m) <U>Payments in the Event of Forfeitures; Fractional Shares</U>. If so determined
          by the Committee, in the event of a forfeiture of a Stock Incentive with respect
          to which a Participant paid cash consideration, the Participant shall be repaid
          the amount of such cash consideration. No fractional shares of Stock shall be
          issued or delivered pursuant to the Plan or any Stock Incentive. Except as
          provided in the Plan, the Committee shall determine whether cash, other Stock
          Incentives or other property shall be issued or paid in lieu of such fractional
          shares or whether such fractional shares or any rights thereto shall be
          forfeited or otherwise eliminated. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(n) <U>Certain Limitations Relating to Accounting Treatment of Awards.</U> At any
          time that the Company is accounting for Stock Incentives under Accounting
          Principles Board Opinion 25 (&#147;APB 25&#148;), the Company intends that, with
          respect to such Stock Incentives, the compensation measurement date for
          accounting purposes shall occur at the date of grant or the date performance
          conditions are met if a Stock Incentive is fully contingent on achievement of
          performance goals, unless the Committee specifically determines otherwise.
          Therefore, other provisions of the Plan notwithstanding, in order to preserve
          this fundamental objective of the Plan, if any authority granted to the
          Committee hereunder or any provision of the Plan or a Stock Incentive agreement
          would result, under APB 25, in &#147;variable&#148; accounting or a measurement
          date other than the date of grant or the date such performance conditions are
          met with respect to such Stock Incentives, if the Committee was not specifically
          aware of such accounting consequence at the time such Stock Incentive was
          granted or provision otherwise became effective, such authority shall be limited
          and such provision shall be automatically modified and reformed to the extent
          necessary to preserve the accounting treatment of the award intended by the
          Committee. This provision shall cease to be effective if and at such time as the
          Company no longer accounts for equity compensation under APB 25. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(o) <U>Compliance with Code Section&nbsp;162(m)</U>. It is the intent of the Company
          that Options and Stock Appreciation Rights granted to Covered Employees and
          other Stock Incentives designated as &#147;Awards to Covered Employees&#148;
          subject to Section&nbsp;8(b) shall constitute qualified &#147;performance-based
          compensation&#148; within the meaning of Code Section&nbsp;162(m) and
          regulations thereunder. Accordingly, the terms of Sections 8(b), (c) and (d),
          including the definitions of Covered Employee and other terms used therein,
          shall be interpreted in a manner consistent with Code Section&nbsp;162(m) and
          regulations thereunder. Because the Committee cannot determine with certainty
          whether a given Participant will be a Covered Employee with respect to a fiscal
          year that has not yet been completed, the term Covered Employee as used herein
          shall mean only a person designated by the Committee as likely to be a Covered
          Employee with respect to a specified fiscal year. If any provision of the Plan
          or any Award Agreement relating to a Performance Award that is designated as
          intended to comply with Code Section&nbsp;162(m) does not comply or is
          inconsistent with the requirements of Code Section&nbsp;162(m) or regulations
          thereunder, such provision shall be construed or deemed amended to the extent
          necessary to conform to such requirements, and no provision shall be deemed to
          confer upon the Committee or any other person discretion to increase the amount
          of compensation otherwise payable in connection with any such award upon
          attainment of the applicable performance objectives. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(p) <U>Agreement</U>. The Committee may condition a Participant&#146;s right
          (i)&nbsp;to exercise, vest or settle the award, and (ii)&nbsp;to receive
          delivery of shares, on the execution and delivery to the Company of the Award
          Agreement and the completion of other requirements, including, but not limited
          to, the execution of a non-compete and/or non-solicitation agreement by the
          recipient and delivery thereof to the Company. Acceptance of, or receipt of the
          benefit of, a Stock Incentive shall be conclusively presumed to be assent by the
          holder to all of the terms and conditions of the Plan and of the Award
          Agreement, whether or not signed by the holder. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(q) <U>Termination of Employment or Service</U>. Unless otherwise determined by the
          Committee, a Participant employed by an entity that is a Subsidiary under this
          Plan shall be deemed to have terminated employment with or service to the
          Company for purposes of this Plan on the date that such entity ceases to be a
          Subsidiary hereunder. </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3">
A-17</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>


<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(r) <U>Designation of Beneficiary</U>. </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(i) If permitted by the Committee, a Participant may file with the Committee a
written designation of one or more persons as such Participant&#146;s
beneficiary or beneficiaries (both primary and contingent) in the event of the
Participant&#146;s death. To the extent an outstanding Stock Option granted
hereunder is exercisable, such beneficiary or beneficiaries shall be entitled to
exercise such Stock Option to the extent permitted under local law. </FONT></TD>
</TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(ii) Each beneficiary designation shall become effective only when filed in writing
with the Committee during the Participant&#146;s lifetime on a form prescribed
by the Committee. The filing with the Committee of a new beneficiary designation
shall cancel all previously filed beneficiary designations. </FONT></TD>
</TR></TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;</FONT></TD>
<TD WIDTH=90%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(iii) If a Participant fails to designate a beneficiary, or if all designated
beneficiaries of a Participant predecease the Participant, then each outstanding
Stock Option hereunder held by such Participant, to the extent exercisable, may
be exercised by, and any Stock Award not yet delivered shall be delivered,
exchanged, or paid to, such Participant&#146;s legal representative. </FONT></TD>
</TR></TABLE>
<BR>

<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
15. AMENDMENT OR DISCONTINUANCE OF PLAN.</FONT></H1>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a) <U>Amendment</U>. The Plan may be amended by the Board of Directors at any time,
          provided that without the affirmative vote of the holders of a majority of the
          shares of the Company&#146;s Common Stock and the affirmative vote of the
          holders of a majority of the Company&#146;s Preferred Stock present or
          represented, and entitled to vote at a meeting duly held in accordance with
          applicable law, no amendment shall be made which (i) increases the aggregate
          number of shares of Common Stock that may be issued or transferred pursuant to
          Stock Incentives as provided in Section 4, (ii) amends the provisions of
          paragraph (a) of Section 13 with respect to eligibility of members of the
          Committee, (iii) permits any person who does not meet the eligibility
          requirements of the Plan to be granted a Stock Incentive, (iv) amends the
          provisions of Sections 5, 6, 7 or 8 to permit shares to be valued or to be
          optioned at less than 100% of Fair Market Value or to change the business
          criteria in Section 8 upon which Performance Awards are based, (v) amends
          Section 12 to extend the term of the Plan, or (vi) amends this Section 15. Any
          amendment to the Plan shall be submitted to the Company&#146;s stockholders for
          approval not later than the earliest annual meeting for which the record date is
          after the date of such Board action if such stockholder approval is required by
          any federal or state law or regulation or the rules of any stock exchange or
          automated quotation system on which the Common Stock may then be listed or
          quoted, and the Board may otherwise, in its discretion, determine to submit
          other amendments to the Plan to stockholders for approval. Without the approval
          of stockholders, the Committee will not amend or replace previously granted
          Options or Stock Appreciation Rights in a transaction that constitutes it
          &#147;repricing.&#148; For purposes of this plan, a &#147;repricing&#148; means:
          (1) amending the terms of an Option or Stock Appreciation Right after it is
          granted to lower its exercise price; (2) any other action that is treated as a
          repricing under generally accepted accounting principles; and (3) canceling an
          Option or Stock Appreciation Right at a time when its strike price is equal to
          or greater than the fair market value of the underlying Stock, in exchange for
          another Option, Stock Appreciation Right, Stock Award, or other equity, unless
          the cancellation and exchange occurs in connection with a merger, acquisition,
          spin-off or other similar corporate transaction. A cancellation and exchange
          described in clause (3) of the preceding sentence will be considered a repricing
          regardless of whether the Option, Stock Award or other equity is delivered
          simultaneously with the cancellation, regardless of whether it is treated as a
          repricing under generally accepted accounting principles, and regardless of
          whether it is voluntary on the part of the Option holder. Adjustments to awards
          under Section 10 will not be deemed &#147;repricings,&#148; however. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b) <U>Discontinuance</U>. The Board of Directors may by resolution adopted by a
          majority of the entire Board of Directors discontinue the Plan at any time. </FONT></P>

<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c) <U>Consents</U>. No amendment or discontinuance of the Plan by the Board of
          Directors or the stockholders of the Company shall adversely affect, without the
          consent of the holder thereof, any Stock Incentive theretofore granted. </FONT></P>

<HR ALIGN=CENTER WIDTH=75% SIZE=1 NOSHADE>

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A-18</FONT></P>
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<P ALIGN="JUSTIFY"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned Secretary of MGP Ingredients, Inc., hereby certifies that the foregoing Plan
was duly approved by the holders of a majority of the Common and Preferred Stock present
or represented and entitled to vote at the Annual Meeting of Stockholders duly called,
noticed, convened and held on October 14, 2004, in accordance with the Certificate of
Incorporation, Bylaws and applicable laws of the State of Kansas. </FONT></P>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Date: October 14, 2004 </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
/s/&nbsp;Marta Myers
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp; </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Marta Myers, Secretary </FONT></TD>
</TR>
</TABLE>
<BR><BR><BR><BR><BR><BR>

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A-19</FONT></P>

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