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CONSTRUCTION LOAN MORTGAGE, SECURITY AGREEMENT,  ASSIGNMENT OF LEASES AND RENTS  AND FIXTURE FINANCING STATEMENT




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Exhibit A
 2




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,
 3




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4




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5




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AGREEMENTS
 Performance of Obligations; Incorporation by Reference
 Further Assurances
 Sale, Transfer, Encumbrance
 6




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Insurance
 Taxes, Liens and Claims, Utilities Exhibit B
 7




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Escrow Payments
 Maintenance and Repair; Compliance with Laws
 Leases
 8
            Lease
 Person
 Tenant
 Indemnity
 9




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Assignment of Leases and Rents
   10




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REPRESENTATIONS AND WARRANTIES
  Ownership, Liens, Compliance with Laws
 Use
 11




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Utilities; Services
 Construction of the Improvements
 CASUALTY; CONDEMNATION
 Casualty, Repair, Proof of Loss
    Use of Insurance Proceeds
 12




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Condemnation
  13




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Use of Condemnation Proceeds
        14




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DEFAULTS AND REMEDIES
 Events of Default
 Remedies
 Acceleration
 Receiver
  Entry
 15




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Cure; Protection of Security
 Uniform Commercial Code Remedies
 Foreclosure; Lawsuits
 Other Remedies 16
        Power of Sale for Personal Mortgaged Property
  Single or Multiple Foreclosure Sales
  Foreclosure Sale Foreclosure Sales
  Expenses of Exercising Rights Powers and Remedies
 17




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Restoration of Position
 Marshalling
 Waivers
 Mortgagees Right to Cure Defaults
 18




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Suits and Proceedings
 MISCELLANEOUS
 Binding Effect; Survival; Number; Gender
 Severability
 Notices
 If to Mortgagee:
    
    First National Bank of Omaha1620 Dodge Street, Stop 1050Omaha, Nebraska 68197-1050Attn: Fallon SavageFax No.: (402) 633-3519If to Mortgagor:
    
    Cardinal Ethanol, LLC2 OMCO, Suite201P.O. Box 47934
 19




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Winchester, Indiana 47934Attn: Troy Prescott, PresidentFax No.: (765) 584-2224
  Applicable Law
 Waiver of Jury Trial
 Effect
 Assignability
 Headings
 Fixture Filing
 (a)
    
    Name and address of Debtor:
    
    Cardinal Ethanol, LLC2 OMCO Square, Suite 201P.O. Box 501Winchester, Indiana 47394USA(b)
    
    Type of Organization:
    
    Limited liability company(c)
    
    Jurisdiction of Organization:
    
    Indiana(d)
    
    Organizational I.D. No.:
    
    2005021100241(e)
    
    Name and address of Secured
    
    First National Bank of OmahaParty:
    
    1620 Dodge Street, Stop 1050Omaha, Nebraska 68197-1050USA
 20




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(f)
    
    Description of the collateral:
    
    See granting clause above(g)
    
    Description of real estate to
    
    See Exhibit A hereto.which the collateral isattached or upon which it isor will be located:
  Estoppel Certificate
 Definitions
 ENVIRONMENTAL
 Environmental Matters; Notice; Indemnity
  et seq et seq. et seq. et seq.
 21




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et seq. et seq.
 et
     22




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23




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24




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25




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IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY
THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS
WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY
ANOTHER WRITTEN AGREEMENT.
 MORTGAGOR:CARDINAL ETHANOL, LLC, an Indiana limited
liability companyBy:
    
    /s/ Troy Prescott

Troy Prescott, President
  
 26




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I affirm under the penalties of perjury, that I have taken responsible care to redact each Social
Security Number in this document, unless required by law.
 /s/ James M. Pfeffer

James M. Pfeffer
 27




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CERTIFICATE OF ACKNOWLEDGMENT
 STATE OF INDIANA
    
    
    )) ss.COUNTY OF Marion
    
    
    )
  Linda L. Schmidt

Notary Public-SignatureNotary Public-Printed NameDate: December 19, 2006
  My commission expires:6/29/2011
 
   Marion
 28




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EXHIBIT A  LEGAL DESCRIPTION
 Tract I, containing 207.623 acres




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Tract II, containing 87.598 acres




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EXHIBIT B  PERMITTED ENCUMBRANCES




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EXHIBIT C  ENVIRONMENTAL STUDIES