**Exhibit 10.1**

 

**LSCP, LLLP DEFERRED BONUS COMPENSATION PLAN**

 

LSCP, LLLP hereby establishesthis Deferred Bonus Compensation Plan effective May 1, 2005.

 

**I.  PURPOSE**

 
| 1.01 |   | The purpose  of the Plan is to provide incentive and reward to a select group of management  employees, as designated by the Board of Directors of the Company. |
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**II.  DEFINITIONS**

 
| 2.01   |   | “Company”  means LSCP, LLLP.                                                                                                                                                                                                                                                                      |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                        |
| 2.02   |   | “Plan”  means the LSCP, LLLP Deferred Bonus Compensation Plan.                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                        |
| 2.03   |   | “Participant”  means a Key Employee who is eligible for the Plan.                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                        |
| 2.04   |   | “Beneficiary”  means a person designated by a Participant to receive plan benefits in the  event of the Participant’s death.                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                        |
| 2.05   |   | “Board”  means the Board of Directors of LSCP, LLLP.                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                        |
| 2.06   |   | “Key  Employee” means an employee of the Company who is an officer or in a  managerial, professional or other key position.                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                        |
| 2.07   |   | “Disability”  means that the Participant is unable to engage in any substantial gainful  activity by reason of any medically determinable physical or mental  impairment which can be expected to result in death or can be expected to  last for a continuous period of not less than 12 months. |
|   |   |                                                                                                                                                                                                                                                                                                        |
| 2.08   |   | “Retirement”  means termination of employment with the Company at or after attainment of  age 62.                                                                                                                                                                                                 |

 

**III.  PARTICIPATION**

 
| 3.01   |   | A Key  Employee of the Company is eligible to participate in this Plan and will  become a Participant upon designation by the Board. |
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|   |   |                                                                                                                                 |
| 3.02   |   | Once an  employee becomes a Participant in the Plan, he will remain a Participant  until his account balance is zero.                |

 

**IV.  GRANT OF DEFERRED BONUS**

 
| 4.01 |   | The Board  may annually grant a discretionary deferred bonus under the Plan to each  Participant in an amount between zero and twenty percent (20%) of each  Participant’s base salary for the prior calendar*** ***year.  Awards may vary within the |
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|   |   | range among  the Participants, and the Board may elect to make no award for a particular  year.                                                                                                                                   |
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|   |   |                                                                                                                                                                                                                              |
| 4.02   |   | The Board  shall meet on or about January 15 of each year (the “Grant Date”) for  purposes of determining the discretionary deferred bonuses. May 1, 2005, the  effective date of the Plan, shall also be a Grant Date. |
|   |   |                                                                                                                                                                                                                              |
| 4.03   |   | The Company  will maintain an account for each Participant which account will reflect the  total contribution amounts allocated to the Participant plus earnings on the  account.                                                 |

 

**V.  VESTING AND DISTRIBUTION**

 
| 5.01   |   | Each  deferred bonus shall vest on January 15 of the sixth calendar year following  the year of Grant Date (the “Vesting Date”), provided the Participant is  employed full-time by the Company throughout the six-year period.                                                                                                                                                                                        |
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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 5.02   |   | A deferred  bonus, including any accrued earning thereon, shall be distributed to the  Participant in a lump sum as soon as administratively practicable following  the Vesting Date.                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 5.03   |   | Any  nonvested deferred bonuses shall be forfeited upon the Participant’s  termination of employment for reasons other than Retirement, death or  Disability. Such amounts shall be fully vested upon the Participant’s  Retirement, death or Disability.                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 5.04   |   | Deferred  bonuses that vest by reason of the Participant’s Disability shall be  distributed to the Participant in a lump sum as soon as administratively  practicable thereafter.                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 5.05   |   | Distribution  of deferred bonuses that vest by reason of the Participant’s Retirement shall  be distributed to the Participant in five substantially equal annual  installments, with said installments commencing as soon as administratively  practicable following the date that is six months after the Participant’s  Retirement date.                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 5.06   |   | Deferred  bonuses that vest by reason of the Participant’s death shall be distributed  to the Participant’s designated beneficiary in a lump sum as soon as  administratively practicable following the death of the Participant. In the  event the Participant did not designate a beneficiary or the beneficiary  predeceases the Participant, the deferred bonuses shall be paid to the  Participant’s estate. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 5.06   |   | Any  nonvested deferred bonuses that are forfeited due to the Participant’s  termination of employment shall revert to the Company.                                                                                                                                                                                                                                                                                         |

 

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**VI.  AMENDMENT AND TERMINATION**

 
| 6.01   |   | The Company  reserves the right to amend the Plan at any time by resolution of the Board.  The Board will determine the effective date of the amendment. An amendment  may not deprive any Participant or Beneficiary of any deferred bonus that is  vested but not yet paid at the time of the amendment. Furthermore, an  amendment may not change the vesting period with respect to any nonvested  deferred bonuses already granted under the Plan. |
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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 6.02   |   | The Company  may terminate the Plan at any time by resolution of the Board.                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 6.03   |   | In the event  the Plan is terminated by the Company, any nonvested deferred bonus amounts  in the account of the Participants shall be fully vested and shall be  distributed to the Participants as soon as administratively practicable.                                                                                                                                                                                                              |

 

**VII.  FUNDING**

 

A Participant’s or Beneficiary’sinterest in the Plan is an unsecured claim against the general assets of theCompany and neither the Participant nor a Beneficiary has any right against theaccount until the Plan has distributed the benefit.  Notwithstanding the first sentence of thisparagraph, the Company will transfer sufficient cash to the Trust Under theLSCP, LLLP Deferred Bonus Compensation Plan (“Trust”), to pay the compensationpromised under the Plan.

 

**VIII.  MISCELLANEOUS**

 
| 8.01   |   | Neither the Participant nor a Beneficiary may assign, transfer or  pledge the benefits under this Plan. Any attempt to assign, transfer or  pledge a Participant’s benefits under this Plan is void.                                                                                                                             |
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| 8.02   |   | This Plan document is binding upon and inures to the Company, its  successors and assigns and upon the Participant, his heirs, beneficiaries and  legal representative.                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                  |
| 8.03   |   | Words used in the masculine also apply to the feminine where  applicable, and wherever the context of the plan dictates, the plural  includes the singular and the singular includes the plural. Titles of Plan  and Trust sections are for reference only.                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                  |
| 8.04   |   | The law of the State of Iowa will determine all questions arising  with respect to the provisions of the Plan, except to the extent superseded  by federal law.                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                  |
| 8.05   |   | The Board shall have full power and  authority to interpret, construe, and administer the Plan and the Board’s  interpretations and construction thereof, and actions hereunder, including  any valuation of a Participant’s account, or the amount or recipient of the  payment to be made therefrom, shall be binding and |

 

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|   |   | conclusive on all persons for all purposes.  No member of the Board shall be liable to  any person for any action taken or omitted in connection with the  interpretation and administration of the Plan unless attributable to his own  willful misconduct or lack of good faith. |
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| **LSCP, LLLP**(the “Company”)                              |
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|                                                                 |
| By: LITTLE SIOUX CORN PROCESSORS, LLC, General Partner of LSCP, LLLP |
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|  /s/ Ronald Wetherell                                           |   |
|                                                                 |
| Ronald Wetherell, Chairman                                           |

 

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