Exhibit








Cardinal Ethanol, LLC
Employee Bonus Plan
Amended and Restated for Fiscal Year 2015-16
(Effective 10-1-15)
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 again 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, 2015 to September 30, 2016 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, 2016 once the fiscal year end results are calculated 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”, Christianson Benchmarking Results, 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 results 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.











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 - $19,999,999  =  71⁄2%payout
-    Payout Level 3 ........................$ 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 industry; based on rankings through Benchmarking surveys. (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. Measure will be based on results of rankings through Benchmarking surveys. (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 Lead Rankings for Ethanol Yield based on 12 month rolling average - (Christianson Benchmarking; All Plants, undenatured, moisture adjusted gallons per bushel ground based on corn at 15%)(3% max payout)


1)Ranking below the top 40%...............................        0% payout
2)Ranking in the top 40% - 35 %..........................        1% payout
3)Ranking between 35% - 25% ...........................        2% payout 
4)Ranking in the top 25% (Leader).......................        3% payout 
		
	•
	Goal #2 Optimize Natural Gas Usage (BTU per Anhydrous Ethanol Gallon)(2% max payout)


1)26,801 or more..................................................         0% payout
2)26,800 - 26,126.................................................         1% payout
3)26,125 or less....................................................        2% payout 
		
	•
	Goal #3 Improve Corn Oil Yield based on 12 month rolling average - (Christianson Benchmarking; Pounds of Oil per Bushels Ground)(2% max payout)


1)Ranking below the top 35%...............................     0% payout
2)Ranking between 35% and 25%........................        1% payout
3)Ranking in the top 25%......................................     2% payout 
		
	•
	Goal #4 Improve Safety Record - Individual Safety Participation; subject to verification and approval by management. (3% max payout)


1) Safety Committee Meeting and Employee Participation (1% max payout)









      Participate in one (1) Safety Committee meeting and one (1) Employee Participation
Task from the below menu:
o    Employee Participation Menu 
Safety Program Area Audit Complete
Non-Routine Task Pre-work Audit Completed
Lead a Toolbox Talk
LOTO/Confined Space Program Review
Contractor Observation, Review and Evaluation
Participate and complete an optional Safety Webinar.
Participate on an Internal Control committee.
2) Improve ERI Audit Score (based on bi-annual Audit scores/ranking)(1% max payout)
		
	1)
	Ranking below the 2nd Quartile......................................    0% payout


		
	2)
	Ranking in the 2nd Quartile............................................     1/2% payout


		
	3)
	Ranking in the 1st Quartile.............................................    1% payout


3) Near Miss Reporting (complete 2) (1% max payout)
1) Two (2) Near Miss Reports completed (Plant or Internal Control)









Personal Incentive (10% additional opportunity available)
Available to the following positions: Production Manager, ESH Manager, Maintenance Manager, and 
Controller. 
These positions will be eligible for an additional 10% payout if they meet certain personal goals. These individual goals will be ones the positioned employee will have a direct impact in achieving the best return to the business.
Personal Incentive (10% additional opportunity available)
Production Manager: Personal Goals (annual payout)
Safety - Improve ERI Safety Audit Score (based on last audit score prior to yearend) (2% max payout)
•Ranking below the 2nd Quartile.................................................     0% payout
•Ranking in the 2nd Quartile.......................................................     1% payout
•Ranking in the 1st Quartile........................................................     2% payout
Safety - All non-capital recommendations from ERI Audit satisfactorily completed within 90 days of notification (1% max payout)
•Have Audit items been completed    NO..................................     0% payout
•Have Audit items been completed    YES................................     1% payout 
Production - Improve Ranking of Ethanol Yield - (Christianson Benchmarking; All Plants, undenatured, moisture adjusted gallons per bushel ground based on corn at 15%) (3% max payout)
•Ranking below the top 40%.......................................................     0% payout
•Ranking in the top 40% - 35%...................................................     1% payout
•Ranking in the top 35% - 25%...................................................     2% payout
•Ranking in the top 25% (Leader)...............................................     3% payout
Production - Maximize Corn Oil Production (Christianson Benchmarking; All Plants, undenatured, moisture adjusted to 15%, pounds per bushel ground.)(2% max payout)
•Ranking below the top 35%......................................................     0% payout
•Ranking between 35% and 25%...............................................     1% payout
•Ranking in the top 25%.............................................................     2% payout 
Production - Ethanol Throughput, denatured gallons (2% max payout)
•Less than 116.0 M gallons........................................................     0% payout
•116.0 M to 117.0 M gallons.......................................................     1% payout
•117.0 M to 120.0 M gallons.......................................................     11/2% payout
•Greater than 120.0 M gallons...................................................     2% payout









Maintenance Manager: Personal Goals (annual payout)
Safety - Improve ERI Safety Audit Score (based on last audit score prior to yearend) (2% max payout)
•Ranking below the 2nd Quartile.................................................     0% payout
•Ranking in the 2nd Quartile.......................................................     1% payout
•Ranking in the 1st Quartile........................................................     2% payout
Safety - All non-capital recommendations from ERI Audit satisfactorily completed within 90 days of notification. (1% max payout)
•Have Audit items been completed.................    NO.....................     0% payout
•Have Audit items been completed.................    YES...................     1% payout
Maintenance - Reduction of supply cost (Based on Christianson Benchmarking for “All Plants - Plant Supplies/Repair/Maintenance”) (2% max payout)
•Ranking outside of the top 20 plants........................................     0% payout
•Top 20 Benchmarking rank for all plants..................................     1% payout
•Leader (top 25% ranking for all plants)....................................      2% payout 
Maintenance - Uptime (includes all downtime) (2%)
•Greater than 288 hours downtime...........................................     0% payout
•288 to 240 hours downtime.....................................................     1% payout
•Less than 240 hours downtime...............................................     2% payout 
Capital Project Management - (3%)
•Capital Project Detail Packet Completed................................     1% payout
•On-Time & On-Budget Completion.........................................     1% payout
•Post Project Analysis Completed............................................     1% payout
EHS Manager: Personal Goals (annual payout)
Safety - Improve ERI Safety Audit Score (based on last audit score prior to yearend) (4% max payout)
•Ranking below the 2nd Quartile...............................................     0% payout
•Ranking in the 2nd Quartile.....................................................     2% payout
•Ranking in the 1st Quartile......................................................     4% payout
Safety - All non-capital recommendations from ERI Audit satisfactorily completed within 90 days of notification (2% max payout)
•Have Audit items been completed.................NO....................     0% payout
•Have Audit items been completed.................YES..................     2% payout 
Environmental Compliance - Maintain Permit Parameters (4%)
•No EHS violations resulting in fines (EPA, OSHA, IDEM, etc.)    3% payout
•Written Monthly EHS Review..................................................     1% payout
- To include Company policy violations, observation summary, recommended actions, bonus tracking, etc.









Controller: Personal Goals (annual payout)
Financial Planning - Prepare at least one cash flow assessment and margin forecast each month during
the fiscal year (3%)
		
	•
	Less than 12 forecasts prepared..............................................    0% payout


		
	•
	12 forecasts prepared..............................................................    1% payout


		
	•
	14 or more forecasts prepared.................................................     2% payout


		
	•
	16 or more forecasts prepared.................................................     3% payout


Tax/K-1 - Completed K-1s in a timely manner before the date of the annual meeting (2%)
•Completion after February 10, 2015........................................     0% payout
•Completion by February 10, 2015...........................................     1% payout
•Completion by January 30, 2015.............................................     2% payout 
FY 10-K - Close for timely SEC filing and bank/Investor Obligations (2%)
•Completion after December 10, 2014......................................     0% payout
•Completion on or before December 10, 2014..........................     1% payout
•Completion on or before December 1, 2014............................     2% payout
Accounting - Prepare calculations for member’s distributions (3%)
		
	•
	Prepare one distribution in each half of the fiscal year............     11⁄2% payout


		
	•
	Prepare at least 3 distributions during the fiscal year..............     3% payout


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. 60% of this payout will be tied to the Managers mentioned under item #1 meeting their goals. 40% of this payout will be based on COGS as a percentage of Sales.
“Senior Management”: Goals (annual payout) (CEO, CFO, Commodity Manager, Plant Manager) Leadership/Management/Coaching - Develop and Support Mid-management (4%)
		
	•
	Average completion score of mid management incentive award times 40% award value.


Production & Capacity Goals (Based on Denatured Production) (4%)
		
	•
	Fiscal Year End Production > 120,000,000 MG......................     1% payout


		
	•
	Operate for 60 days at 125,000,000 MG or greater................     1% payout


		
	•
	Operate for 10 days at 130,000,000 MG or greater................     2% payout


Strategic Planning and Implementation - Bi-Annual Presentation Delivered to BOD (2%)
		
	•
	Completion of Strategic Opportunities for Board assessment and potential implementation. 


-      Team to determine plan, process, implementation and delivery.