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Cardinal Ethanol, LLC Employee Bonus Plan Amended and Restated for Fiscal Year
2020-21 (Effective 10-1-20) The purpose in developing and continuing an Employee
Bonus Plan is to reward the employees for their contributions that directly
impact the financial results of the Company, that reflect a positive safety
culture, and to promote teamwork needed to complete desired goals. This year’s
Plan is made up of financial and team goals relating to the Company’s financial
success, safety, and production efficiency. For the purposes of the Plan, wages
are defined as the amount paid during the defined period and limited to regular
pay, overtime, holiday, and paid time off (PTO). Rules of the Plan: a) All plan
payouts must be approved by the Board of Directors. b) Employee must be employed
on the day that the Board approves the payout to be eligible for any bonus
payout. c) Employee must be working from October 1, 2020 to September 30, 2021
to be eligible for the full bonus. Financial Goal: a) Eligibility for the
Financial Goal payout portion of the plan begins at $7,500,000 net income. There
will be NO payout under the financial goal section if the Company does not meet
this minimum income threshold. b) The Financial Goal section is eligible to all
employees that meet the eligibility requirements. c) Payout for the Financial
Goal will be made prior to December 31, 2021 once the fiscal year end results
are calculated, reviewed, and approved. Team Goals: a) Team Goals are not
subject to a minimum net income requirement. b) Payout for the Team Goals will
be made quarterly and based on company “Operational Statistics”, Individual
Safety Participation, and Audits. c) Employee must be employed on the last day
of the quarter and on the day the Board approves the payout to receive any
payout from the Team Goals. d) Employee does not need to have worked the full
quarter to be eligible. Payout will be made once final goal accomplishments are
known and have been approved by the Board of Directors. e) Team Goal payout is
applicable to all employees that meet the eligibility requirements.

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Employee Bonus Plan Financial Goal – Max Payout 10% of eligible wage. • Minimum
required net profit needed for payout $7.5M (Annual Payout) - Payout Level
1…………………………… $ 7,500,000 - $11,999,999 = 5 % payout - Payout Level 2……………………………
$12,000,000 - $19,999,999 = 7½% payout - Payout Level 3…………………………… $20,000,000
and above = 10% payout Team Goals – Max Payout 10% of eligible wage. Team Goal
#1 – Improved efficiency and production through increased ethanol yield per
bushel ground as compared to previous year’s achievements. (Quarterly Payout)
Team Goal #2 – Optimize natural gas usage by reducing BTU/gallon. Achieved
Natural Gas Usage number will be based on “Operation Statistics” work papers.
(Quarterly Payout) Team Goal #3 – Maximize corn oil yield per bushel of corn
ground. (Quarterly Payout) Team Goal #4 – Improve Safety performance. Increase
awareness and maintain safety performance. Near Misses will be based on
individual reports submitted on time to the EHS Manager. Other Safety criteria
are based on individual participation and Bi-Annual Safety Audits. (Quarterly
Payout) • Goal #1 Be a leader in efficiency through optimizing ethanol yield –
(Improve on our 3-year average yield of 2.90 undenatured, moisture adjusted
gallons per bushel ground based on corn at 15%) (3% max payout) 1) Undenatured
Ethanol Yield below 2.909 bu/gal…………. 0% payout 2) Undenatured Ethanol Yield of
2.91 – 2.919 bu/gal…. 1% payout 3) Undenatured Ethanol Yield of 2.920 – 2.935
bu/gal..…. 2% payout 4) Undenatured Ethanol Yield of > 2.935
bu/gal................ 3% payout • Goal #2 Optimize Natural Gas Usage (BTU per
Anhydrous Ethanol Gallon) (2% max payout) 1) 25,950 or more…..…….………………………………………
0% payout 2) 25,949 – 25,450 ………………………………………………. 1% payout 3) Less than
25,450..…………………………………………….. 2% payout • Goal #3 Maximize Corn Oil Yield –
(Pounds of Oil per Bushels Ground) (2% max payout) 1) Corn Oil Yield of <.880
lbs/bushel……………………. 0% payout 2) Corn Oil Yield of .880 - .899 lbs/bu..…………………
1% payout 3) Corn Oil Yield of > .900 .........…………………………. 2% payout

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• Goal #4 Improve Safety Record: Individual Safety Participation; subject to
verification and approval by management. (3% max payout) 1) Safety Committee
Meeting and Individual Employee Participation (1% max payout) Participate in one
(1) Safety Committee meeting and one (1) Individual Employee Participation Task
from the below menu: o Individual Employee Participation Menu (One item per
employee) Safety Program Area Audit Complete Non-Routine Task Pre-Work Audit
Completed Lead a Toolbox Talk Review, update, and complete PSSR activity.
LOTO/Confined Space Program Review Contractor Observation, Review and Evaluation
Participate and complete an optional Safety Webinar. Participate on an Internal
Control committee. 2) Near Miss Reporting (complete 2) (1% max payout) o Two (2)
Near Miss Reports completed (Plant, Internal Control, Cyber) 3) Improve ERI
Audit Score (based on bi-annual Audit scores/ranking) (1% max payout) (required
a minimum of 1 above to be eligible for item #3) Q1 Payout = Completion of all
non-capital deficiencies highlighted and mentioned in the latest ERI Safety
Audit within 90 days of issuance of ERI Safety Audit Report. Q2 Payout = A
Safety Audit Score greater than the previous ERI Safety Audit Score (91.58%). Q3
Payout = Completion of all non-capital deficiencies highlighted and mentioned in
the latest ERI Safety Audit within 90 days of issuance of ERI Safety Audit
Report. Q4 Payout = A Safety Audit Score greater than the Previous ERI Safety
Audit Score (TBD after Q2 Audit).

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Personal Incentive (10% additional opportunity available) Available to the
following positions: CEO, CFO, Commodity Manager, and Plant Manager These
positions will be eligible for an additional 10% payout. 50% of this payout will
be tied to the Production Manager, Maintenance Manager, and the EHS Manager
meeting their individual goals. 20% of this payout will be tied to all employee
base plan average annual score. 30% of this payout will be based on Production
improvement. “Senior Management”: Goals (annual payout) (CEO, CFO, Commodity
Manager, Plant Manager) 1) Leadership/Management/Coaching – Develop and Support
Mid-management (5%) Average completion scores of mid management incentive award
times 50% award value. 2) Staff Development and Training – Develop programs and
processes for employee success (2%) Average earned score of all employees
(excluding mid-management) incentive award times 20% award value. 3) Production
& Capacity Goals (Based on Denatured Production) (3%) 1) Fiscal Year End
Production > 132,000,000 MG………………. 1% payout 2) Fiscal Year End Production >
134,000,000 MG………......... 2% payout 3) Fiscal Year End Production > 138,000,000
MG………......... 3% payout

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