Exhibit 10.31
 Cardinal Ethanol, LLC
Employee Bonus Plan
Fiscal Year 2010-2011
  regular pay overtime holiday 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 Pay.
 C)
    
    Employee must be working from October 1, 2010 to September 30, 2011 to be eligible for
the full bonus.
  A)
    
    Eligibility for the Financial Goal payout (Part A) portion of the plan begins at
$7,500,000 net income. Nothing will be paid out under Part A if the Company doesnt meet
this minimum net income.
 B)
    
    Part A is eligible to all employees that meet the eligibility requirements.
 C)
    
    For the purposes of this plan, the Management Team, as defined, will not be eligible
for a bonus under Part A.
 D)
    
    Payout will be made prior to December 31, 2011 once the fiscal year end results are
calculated and approved.
  A)
    
    Team Goals (Part B) are not subject to a minimum net income requirement.
 B)
    
    Payout for Part B will be made quarterly and based on company Operational Statistics
by quarter.
 C)
    
    Employee must be employed on the last day of the quarter to receive any payout from
Part B.
 D)
    
    Employee does not need to have worked the full quarter to be eligible. Payout will be
made by the month end following the end of the quarter.
 E)
    
    Part B is applicable to all employees that meet the eligibility requirements.




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Plan Theory:
 1)
    
    The Company has to achieve a degree of financial success in order for the plan to
payout under Part A.
 2)
    
    Part A requires the Company to make greater than $7,500,000 in net income to payout.
This is ~a 10% return to investors before any bonuses are paid out.
 3)
    
    The Team has to meet acceptable safety and production goals in order for the plan to
payout under Part B.
 4)
    
    There is a Part C that is specific to Management Staff, as defined.
 The Plan:
 Financial Goal (Part A)
 >
  
    
    If net income is less than $7,500,000, the Company will not make a contribution to
Employee Part A.
 
    
    If net income is greater than or equal to $7,500,000 and less than or equal to
$11,999,999, the Company will contribute to eligible employees an amount equal to 5% of the
employees wages (as defined).
 
    
    If net income is greater than or equal to $12,000,000, and less than or equal to
$19,999,999, the Company will contribute to eligible employees an amount equal to 7.5% of
the employees wages (as defined).
 
    
    If net income is greater than or equal to $20,000,000, the company will contribute to
eligible employees an amount equal to 10% of the employees wages (as defined).
 Team Goal (Part B)
   
    
    If a Cardinal employee sustains a Lost Time Accident during the quarter there will be
no (0) payout for the quarter.
 
    
    If Recordable incidences are greater than 1 for the quarter, there will be no (0)
payout for the quarter.
 
    
    If Recordable incidences equal 1 for the quarter, a payout of 1% of the employees
wage (as defined) for the quarter will be contributed to the bonus under Part B.
 
    
    If Recordable incidences equal zero (0) for the quarter, a payout of 3% of the
employees wage (as defined) for the quarter will be contributed to the bonus under Part B.




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
    
    If the moisture corrected, undenatured yield is less than 2.716 the payout will be zero
(0).
 
    
    If the moisture corrected, undenatured yield is between 2.716  2.735, the Company
will contribute to Employee Part B an amount equal to 1/2% of the employees quarterly wage
(as defined).
 
    
    If the moisture corrected, undenatured yield is between 2.736  2.755, the Company
will contribute to Employee Part B an amount equal to 11/2% of the employees quarterly wage
(as defined).
 
    
    If the moisture corrected, undenatured yield is between 2.756  2.775, the Company
will contribute to Employee Part B an amount equal to 21/2% of the employees quarterly wage
(as defined).
 
    
    If the moisture corrected, undenatured yield is above 2.775, the Company will
contribute to Employee Part B an amount equal to 41/2% of the employees quarterly salary.
 Management (Part C)
    
    
    If net income is less than $7,500,000, the Company will not make a contribution to
Employee Part C.
 
    
    If net income is greater than or equal to $7,500,000 and less than or equal to
$11,999,999, the Company will contribute to eligible employees an amount equal to 10% of
the employees wages (as defined).
 
    
    If net income is greater than or equal to $12,000,000, and less than or equal to
$19,999,999, the Company will contribute to eligible employees an amount equal to 15% of
the employees wages (as defined).
 
    
    If net income is greater than or equal to $20,000,000, the company will contribute to
eligible employees an amount equal to 20% of the employees wages (as defined).