Document:

exv10w1

 

Exhibit 10.1

Named Executive Officer Compensation Schedule

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2005 Long-Term	 	 	 	 
	Name & Principal Position	 	2005 Salary	 	 	2005 Bonus	 	 	Incentive Award(1)	 	 	2006 Base Salary	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Timothy H. Callahan
	 	$	1,050,000	 	 	$	1,760,000	 	 	58,637 RSRs	 	$	1,110,000	 
	Michael C. Colleran
	 	 	400,000	 	 	 	650,000	 	 	28,785 RSRs	 	 	425,000	 
	William R.C. Tresham
	 	 	400,000	 	 	 	550,000	 	 	26,652 RSRs	 	 	425,000	 
	Brian K. Lipson
	 	 	400,000	 	 	 	450,000	 	 	21,322 RSRs	 	 	414,000	 
	Ted R. Jadwin
	 	 	290,000	 	 	 	185,000	 	 	9,595 RSRs	 	 	300,000	 

 

			
	(1)	 	Upon vesting of the restricted stock rights (the “RSRs”), one share of Trizec’s common stock is
issuable for each RSR that vests. The RSR award granted to each executive officer represents the
number of RSRs awarded based on $23.45 per share of Trizec common stock, the closing price on
February 6, 2006.exv4w1

 

Exhibit 4.1

CERTIFICATE OF MEMBERSHIP UNITS

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	Membership	 
	 	Number	 	 	 	 	 	 	 	Units	 
	 	 
	 	 	 	 	 	 	 	 
	 

Cardinal Ethanol, LLC

A Limited Liability Company Organized Under the Laws of the State of Indiana

     
THIS CERTIFIES THAT
                                                                                                                                            is/are the

owner(s) of                                                                                UNITS (                    ) of the Membership Units
of Cardinal Ethanol, LLC, an Indiana limited liability company. Changes in
the actual Membership Units held by the Members are reflected in the Certificate of
Registration of the Company.

The Membership Units represented by this Certificate may not be transferred or assigned except
in compliance with the Operating Agreement of the Company, a copy of which is available at the
principal office of the Company.

IN WITNESS WHEREOF, the Company has caused this Certificate to be signed by its duly authorized
Chairman and Secretary as of this                     day of                                         , 20 .

 

	 	 	 
	 

	 	 
	Troy Prescott, President
	 	John N. Shanks II, Secretary

 

 

     FOR VALUE RECEIVED,                    hereby sell, assign, and transfer unto                                                             
                                                                                                                                                                                      Units represented by the within Certificate, and do hereby irrevocably constitute and
appoint                                        
                                                                                 Attorney to transfer the said Units on the books of the within named Company with
full power of substitution in the premises.

     Dated                                         ,                     .

	 	 	 	 	 
	In Presence of
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

THE TRANSFERABILITY OF THE UNITS REPRESENTED BY THIS CERTIFICATE IS
RESTRICTED. SUCH UNITS MAY NOT BE SOLD, ASSIGNED, OR TRANSFERRED, NOR WILL
ANY ASSIGNEE, VENDEE, TRANSFEREE OR ENDORSEE THEREOF BE RECOGNIZED AS
HAVING ACQUIRED ANY SUCH UNITS FOR ANY PURPOSES, UNLESS AND TO THE EXTENT
SUCH SALE, TRANSFER, HYPOTHECATION OR ASSIGNMENT IS PERMITTED BY, AND IS
COMPLETED IN STRICT ACCORDANCE WITH, APPLICABLE STATE AND FEDERAL LAW AND
THE TERMS AND CONDITIONS SET FORTH IN THE OPERATING AGREEMENT AND AGREED TO
BY EACH MEMBER.

THE UNITS REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS, AND MAY NOT BE
SOLD, OFFERED FOR SALE, OR TRANSFERRED IN ABSENCE OF EITHER AN EFFECTIVE
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER
APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO
THE COMPANY THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND UNDER APPLICABLE STATE SECURITIES
LAWS.exv4w2

 

Exhibit 4.2

CARDINAL ETHANOL, LLC

SUBSCRIPTION AGREEMENT

Limited Liability Company Membership Units

$5,000.00 per Unit

Minimum Investment of 4 Units ($20,000)

1 Unit Increments Thereafter ($5,000)

The undersigned subscriber, desiring to become a member of Cardinal Ethanol, LLC (“Cardinal
Ethanol”), an Indiana limited liability company, with its principal place of business at 2 OMCO
Square, Suite 201, Winchester IN 47394, hereby subscribes for the purchase of the membership
interests of Cardinal Ethanol, and agrees to pay the related purchase price, identified below.

A. SUBSCRIBER INFORMATION. Please print your individual or entity name and address. Joint
subscribers should provide their respective names. Your name and address will be recorded exactly
as printed below.

	 	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	Subscriber’s Printed Name	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Title, if applicable:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Subscriber’s Address:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	     Street	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	     City, State, Zip Code	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Telephone:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Email Address:	 	 
	 

	 	 	 	 	 	 	 	 

B. NUMBER OF UNITS PURCHASED. You must purchase at least 4 units. Your ownership interest
may not exceed 40% of all our outstanding membership units. We presently have 568 units
outstanding. Therefore, the maximum number of units you may own is 3,827 units if we sell the
minimum offering and 6,787 units if we sell the maximum.

	 	 	 
	 	 
	 

C. PURCHASE PRICE. Indicate the dollar amount of your investment (minimum investment is
$20,000).

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	1. Total Purchase Price	 	 	=	 	 	2. 1st Installment	 	 	+	 	 	3. 2nd Installment
	 	($5,000.00 Per Unit multiplied	 	 	 	 	 	(10% of the Total Purchase	 	 	 	 	 	(90% of the Total Purchase
	 	by the number in box B above.)	 	 	 	 	 	Price)	 	 	 	 	 	Price)
	 	 
	 	 	=	 	  	 
	 	 	+	 	 	 

D. GENERAL INSTRUCTIONS FOR SUBSCRIBERS:

You should read the Prospectus dated [Date of Effectiveness] (the “Prospectus”) in its entirety
including exhibits for a complete explanation of an investment in Cardinal Ethanol, LLC. To
subscribe, you must:

INSTRUCTIONS IF YOU ARE SUBSCRIBING PRIOR TO THE COMPANY’S RELEASE OF FUNDS FROM ESCROW:
If you are subscribing prior to the Company’s release of funds from escrow, you must follow Steps 1
through 5 below:

          1. Complete all information required in this Subscription Agreement, and date and sign the
Subscription Agreement on page 6 and the Member Signature Page to our Second Amended and Restated
Operating Agreement attached to this Subscription Agreement as Exhibit A.

1

 

          2. Immediately provide your personal (or business) check for the first installment of ten
percent (10%) of your investment amount made payable to                                         , escrow agent for
Cardinal Ethanol, LLC. You will determine this amount in box C.2 on page 1 of this Subscription
Agreement.

          3. Execute the Promissory Note and Security Agreement on page 7 of this Subscription Agreement
evidencing your commitment to pay the remaining ninety percent (90%) due for the Units that is
attached to this Subscription Agreement and grant Cardinal Ethanol a security interest in your
Units.

          4. Deliver each of the original executed documents referenced in Items 1 and 3 of these
Instructions, together with your personal or business check described in Item 2 of these
Instructions to either of the following:

	 	 	 	 	 	 	 
	 

	 	Cardinal Ethanol, LLC
	 	 

	 	 
	 

	 	Attention: Angela Armstrong
	 	 

	 	 
	 

	 	2 OMCO Square, Suite 201
	 	 

	 	 
	 

	 	Winchester IN 47394
	 	 

	 	 

          5. Upon written notice from Cardinal Ethanol stating that its sales of Units have exceeded the
Minimum Offering amount of $45,000,000, you must, within thirty (30) days secure an additional
personal (or business) check for the second installment of ninety percent (90%) of your investment
amount made payable to                                         , escrow agent for Cardinal Ethanol in satisfaction of the
Promissory Note and Security Agreement. You will determine this amount in box C.3 on page 1 of
this Subscription Agreement. You must deliver this check to the same address set forth above in
Instruction 4 within thirty (30) days of the date of Cardinal Ethanol’s written notice. If you fail
to pay the second installment pursuant to the Promissory Note and Security Agreement, Cardinal
Ethanol shall be entitled to retain your first installment and to seek other damages, as provided
in the Promissory Note and Security Agreement.

Your funds will be placed in Cardinal Ethanol’s escrow account at                                         . The funds
will be released to Cardinal Ethanol or returned to you in accordance with the escrow arrangements
described in the Prospectus. Cardinal Ethanol may, in its sole discretion, reject or accept any
part or all of your subscription. If Cardinal Ethanol rejects your subscription, your Subscription
Agreement and investment will be promptly returned to you, plus nominal interest, minus escrow
fees. Cardinal Ethanol may not consider the acceptance or rejection of your subscription until a
future date near the end of this offering.

INSTRUCTIONS IF YOU ARE SUBSCRIBING AFTER THE COMPANY’S RELEASE OF FUNDS FROM ESCROW: If
you are subscribing after the Company’s release of funds from escrow, you must follow Steps 1
through 3 below:

          1. Complete all information required in this Subscription Agreement, and date and sign the
Subscription Agreement on page 6 and the Member Signature Page to our Second Amended and Restated
Operating Agreement attached to this Subscription Agreement as Exhibit A.

          2. Immediately provide your personal (or business) check for the entire amount of your
investment (as determined in Box C.1 on page 1) made payable to “Cardinal Ethanol, LLC.”

          3. Deliver the original executed documents referenced in Item 1 of these Instructions,
together with your personal or business check described in Item 2 of these Instructions to the
following:

Cardinal Ethanol, LLC

2 OMCO Square, Suite 201

Winchester IN 47394

     If you are subscribing after we have released funds from escrow and we accept your investment,
your funds will be immediately at-risk as described in the Prospectus. Cardinal Ethanol may, in
its sole discretion, reject or accept any part or all of your subscription. If Cardinal Ethanol
rejects your subscription, your Subscription Agreement and investment will be returned to you
promptly, plus nominal interest, minus escrow fees. Cardinal Ethanol may not consider the
acceptance or rejection of your subscription until a future date near the end of this offering.

2

 

You may
direct your questions to one of our directors listed below or to Cardinal Ethanol at
765-584-2209.

	 	 	 
	Director
	 	Telephone Number

	Troy Prescott
	 	(765) 969-5541

	Tom Chalfant
	 	(765) 729-3129

	Ralph Brumbaugh
	 	(937) 423-0964

	Thomas Chronister
	 	(260) 437-0418

	Everett Hart
	 	(937) 459-7301

	Jeremy Herlyn
	 	(765) 914-4938

	Michael Shuter
	 	(765) 208-2422

	Steve Snider
	 	(765) 744-1881

	Jerrold Voisinet
	 	(937) 773-1069

	Andrew Zawosky
	 	(937) 459-0162

E. Additional Subscriber Information. The subscriber, named above, certifies the following under
penalties of perjury:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	1.	 	 	Form of Ownership. Check the appropriate box (one only) to indicate form of
ownership. If the subscriber is a Custodian, Corporation, Partnership or Trust, please
provide the additional information requested.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	Individual	 	 
	 	 	 	 	 	 	o	 	Joint Tenants with Right of Survivorship (Both signatures must appear on Page 6.)
	 	 	 	 	 	 	o	 	Corporation, Limited Liability Company or Partnership
(Corporate Resolutions, Operating Agreement or Partnership Agreement must be
enclosed.)
	 

	 	 	 	 	 	o
	 	Trust	 	 

	 	 	 	 	 	 	 
	 

	 	  Trustee’s Name:	 	 
	 	 
	 

	 	  Trust Date:	 	 
	 	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	o	 	Other: Provide detailed information in the space immediately below.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 
	 	 	 	2.	 	 	Subscriber’s Taxpayer Information. Check the appropriate box if you are a
non-resident alien, a U.S. Citizen residing outside the United States or subject to
backup withholding. Trusts should provide their taxpayer identification number.
Custodians should provide the minor’s Social Security Number. All individual
subscribers should provide their Social Security Number. Other entities should provide
their taxpayer identification number.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	o
	 	Check box if you are a non-resident alien
	 

	 	 	 	 	 	o
	 	Check box if you are a U.S. citizen residing outside of the United States
	 

	 	 	 	 	 	o
	 	Check this box if you are subject to backup withholding

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Subscriber’s Social Security No.
	 	 

	 	 
	 

	 	 	 	Joint Subscriber’s Social Security No.
	 	 

	 	 
	 

	 	 	 	Taxpayer Identification No.
	 	 

	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	3.	 	 	Member Report Address. If you would like duplicate copies of member reports
sent to an address that is different than the address identified in section A, please
complete this section.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	State of Residence.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	State of Principal Residence:	 	 	 	 
	 

	 	 	 	 	 	State where driver’s license is issued:
	 	 

	 	 
	 

	 	 	 	 	 	State where resident income taxes are filed:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

3

 

State(s) in which you have maintained your principal residence during the past three
years:

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	a
	 	 	b.	 	 	c.
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	5.	 	Suitability Standards. You cannot invest in Cardinal Ethanol unless you meet
one, or more, of the following suitability tests (a or b) set forth below. Please
review the suitability tests and check the box(es) next to the following suitability
test that you meet. For husbands and wives purchasing jointly, the tests below will be
applied on a joint basis.
	 
	 	 	 	 	 	 
	 

	 	a.
	 	o
	 	I (We) have annual income from whatever
source of at least $45,000 and a net worth of at least $45,000,
exclusive of home, furnishings and automobiles; or
	 
	 	 	 	 	 	 
	 

	 	c.
	 	o
	 	I (We) have a net worth of at least $100,000,
exclusive of home, furnishings and automobiles.
	 
	 	 	 	 	 	 

	 	 	 	 	 
	6.	 	Subscriber’s Representations and Warranties. You must read and certify your
representations and warranties and sign and date this Subscription Agreement.
	 
	 	 	 	 
	 	 	By signing below the subscriber represents and warrants to Cardinal Ethanol that he,
she or it:
	 
	 	 	 	 
	 

	 	a.
	 	has received a copy of Cardinal Ethanol’s Prospectus dated
[effective date] and the exhibits thereto;
	 
	 	 	 	 
	 

	 	b.
	 	has been informed that the Units of Cardinal Ethanol are
offered and sold in reliance upon a federal securities registration; Florida,
Georgia, Illinois, Indiana, Kentucky, Michigan, Ohio, and Tennessee securities
registrations; and exemptions from securities registrations in various other
states, and understands that the Units to be issued pursuant to this
subscription agreement can only be sold to a person meeting requirements of
suitability;
	 
	 	 	 	 
	 

	 	c.
	 	has been informed that the securities purchased pursuant to
this Subscription Agreement have not been registered under the securities laws
of any state other than the States of Florida, Georgia, Illinois, Indiana,
Kentucky, Michigan, Ohio, and Tennessee, and that Cardinal Ethanol is relying
in part upon the representations of the undersigned Subscriber contained
herein;
	 
	 	 	 	 
	 

	 	d.
	 	has been informed that the securities subscribed for have not
been approved or disapproved by the Florida, Georgia, Illinois, Indiana,
Kentucky, Michigan, Ohio, and Tennessee Securities Departments or any other
regulatory authority, nor has any regulatory authority passed upon the accuracy
or adequacy of the Prospectus;
	 
	 	 	 	 
	 

	 	e.
	 	intends to acquire the Units for his/her/its own account
without a view to public distribution or resale and that he/she/it has no
contract, undertaking, agreement or arrangement to sell or otherwise transfer
or dispose of any Units or any portion thereof to any other person;
	 
	 	 	 	 
	 

	 	f.
	 	understands that there is no present market for Cardinal
Ethanol’s membership units, that the membership units will not trade on an
exchange or automatic quotation system, that no such market is expected to
develop in the future and that there are significant restrictions on the
transferability of the membership units;
	 
	 	 	 	 
	 

	 	g.
	 	has been encouraged to rely upon the advice of his legal
counsel and accountants or other financial advisers with respect to the tax and
other considerations relating to the purchase of units;
	 
	 	 	 	 
	 

	 	h.
	 	has received a copy of the Cardinal Ethanol Second Amended and
Restated Operating Agreement, dated February 1, 2006, and understands that upon
closing the escrow by Cardinal Ethanol, the subscriber and the membership units
will be bound by the provisions of the Second Amended and Restated Operating
Agreement which contains, among other things, provisions that restrict the
transfer of membership units;

4

 

	 	i.	 	understands that the Units are subject to substantial
restrictions on transfer under state securities laws along with restrictions in
the Cardinal Ethanol Second Amended and Restated Operating Agreement and agrees
that if the membership units or any part thereof are sold or distributed in the
future, the subscriber shall sell or distribute them pursuant to the terms of
the Second Amended and Restated Operating Agreement, and the requirements of
the Securities Act of 1933, as amended, and applicable state securities laws;
	 
	 	j.	 	meets the suitability test marked in Item 5 above and is
capable of bearing the economic risk of this investment, including the possible
total loss of the investment;
	 
	 	k.	 	understands that Cardinal Ethanol will place a restrictive
legend on any certificate representing any unit containing substantially the
following language as the same may be amended by the Governors of Cardinal
Ethanol in their sole discretion:

THE TRANSFERABILITY OF THE MEMBERSHIP UNITS REPRESENTED BY THIS
CERTIFICATE IS RESTRICTED. SUCH UNITS MAY NOT BE SOLD, ASSIGNED,
OR TRANSFERRED, AND NO ASSIGNEE, VENDEE, TRANSFEREE OR ENDORSEE
THEREOF WILL BE RECOGNIZED AS HAVING ACQUIRED ANY SUCH UNITS FOR
ANY PURPOSES, UNLESS AND TO THE EXTENT SUCH SALE, TRANSFER,
HYPOTHECATION, OR ASSIGNMENT IS PERMITTED BY, AND IS COMPLETED IN
STRICT ACCORDANCE WITH, APPLICABLE FEDERAL AND STATE LAW AND THE
TERMS AND CONDITIONS SET FORTH IN THE SECOND AMENDED AND RESTATED
OPERATING AGREEMENT OF THE COMPANY, AS AMENDED FROM TIME TO TIME.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD,
OFFERED FOR SALE OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
UNDER APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH TRANSACTION IS EXEMPT FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
UNDER APPLICABLE STATE SECURITIES LAWS.

	 	l.	 	understands that, to enforce the above legend, Cardinal Ethanol
may place a stop transfer order with its registrar and stock transfer agent (if
any) covering all certificates representing any of the membership units;
	 
	 	m.	 	has knowledge and experience in business and financial matters
as to be able to evaluate the merits and risks of an investment in the Units,
believes that the investment in Units is suitable for the subscriber and can
bear the economic risk of the purchase of Units including the total loss of the
undersigned’s investment;
	 
	 	n.	 	may not transfer or assign this subscription agreement, or any
of the subscriber’s interest herein;
	 
	 	o.	 	has written his, her, or its correct taxpayer identification
number under Item E.2 on this subscription agreement;
	 
	 	p.	 	is not subject to back up withholding either because he, she or
it has not been notified by the Internal Revenue Service (“IRS”) that he, she
or it is subject to backup withholding as a result of a failure to report all
interest or dividends, or the IRS has notified him, her or it that he is no
longer subject to backup withholding (Note this clause (p) should be crossed
out if the backup withholding box in Item E.2 is checked);
	 
	 	q.	 	understands that execution of the attached Promissory Note and
Security Agreement will allow Cardinal Ethanol or its assigns to pursue the
obligor for payment of the amount due thereon by any legal means, including,
but not limited to, acquisition of a judgment against

5

 

	 	 	 	the obligor in the event that the subscriber defaults on that Promissory Note
and Security Agreement; and
	 
	 	r.	 	acknowledges that Cardinal Ethanol may retain possession of
certificates representing subscriber’s Units to perfect its security interest
in those Units.

Signature of Subscriber/ Joint Subscriber:

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 
	 
	 	 	 	 	 	 
	Individuals:

	 	 	 	 	 	Entities:

	 	 	 
	 
	 	 
	 

     Name of Individual Subscriber (Please Print)

	 	 
 Name
of Entity (Please Print)
	 
	 	 
	 

     Signature of Individual

	 	 
 Print
Name and Title of Officer
	 
	 	 
	 

     Name of Joint Individual Subscriber (Please Print)

	 	 
 Signature
of Officer
	 
	 	 
	 

     Signature of Joint Individual Subscriber

	 	 

ACCEPTANCE OF SUBSCRIPTION BY CARDINAL ETHANOL, LLC:

Cardinal Ethanol, LLC hereby accepts the subscription for the above Units.

Dated this                    day of                                        , 200___.

CARDINAL ETHANOL, LLC

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Its:
	 	 	 	 
	 

	 	 

	 	 

6

 

PROMISSORY NOTE AND SECURITY AGREEMENT

Date of Subscription Agreement:                                                             , 200___.

$5,000.00 per Unit

Minimum Investment of 4 Units ($20,000), 1 Unit Increments Thereafter ($5,000)

	 	 	 
	 

	 	Number of Units subscribed
	 

	 	 
	 

	 	Total Purchase Price ($5,000.00 per Unit multiplied by number of Units subscribed)
	 

	 	 
	          (                    )

	 	Less Initial Payment (10% of Principal Amount)
	 

	 	 
	 

	 	Principal Balance
	 

	 	 

FOR VALUE RECEIVED, the undersigned hereby promises to pay to the order of Cardinal Ethanol, LLC,
an Indiana limited liability company (“Cardinal Ethanol”), at its principal office located at 2
OMCO Square, Suite 201, Winchester IN 47394, or at such other place as required by Cardinal
Ethanol, the Principal Balance set forth above in one lump sum to be paid without interest within
30 days following the call of the Cardinal Ethanol Board of Directors, as described in the
Subscription Agreement. In the event the undersigned fails to timely make any payment owed, the
entire balance of any amounts due under this full recourse Promissory Note and Security Agreement
shall be immediately due and payable in full with interest at the rate of 12% per annum from the
due date and any amounts previously paid in relation to the obligation evidenced by this Promissory
Note and Security Agreement may be forfeited at the discretion of Cardinal Ethanol.

The undersigned agrees to pay to Cardinal Ethanol on demand, all costs and expenses incurred to
collect any indebtedness evidenced by this Promissory Note and Security Agreement, including,
without limitation, reasonable attorneys’ fees. This Promissory Note and Security Agreement may
not be modified orally and shall in all respects be governed by, construed, and enforced in
accordance with the laws of the State of Indiana.

The provisions of this Promissory Note and Security Agreement shall inure to the benefit of
Cardinal Ethanol and its successors and assigns, which expressly reserves the right to pursue the
undersigned for payment of the amount due thereon by any legal means in the event that the
undersigned defaults on obligations provided in this Promissory Note and Security Agreement.

The undersigned waives presentment, demand for payment, notice of dishonor, notice of protest, and
all other notices or demands in connection with the delivery, acceptance, performance or default of
this Promissory Note and Security Agreement.

The undersigned grants to Cardinal Ethanol, and its successors and assigns (“Secured Party”), a
purchase money security interest in all of the undersigned’s Membership Units of Cardinal Ethanol
now owned or hereafter acquired. This security interest is granted as non-exclusive collateral to
secure payment and performance on the obligation owed Secured Party from the undersigned evidenced
by this Promissory Note and Security Agreement. The undersigned further authorizes Secured Party to
retain possession of certificates representing such Membership Units and to take any other actions
necessary to perfect the security interest granted herein.

	 	 	 	 	 	 	 	 	 
	Dated:           , 200 .	 	 	 	 	 	 
	OBLIGOR/DEBTOR:	 	JOINT OBLIGOR/DEBTOR:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Printed or Typed Name of Obligor	 	Printed or Typed Name of Joint Obligor	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

(Signature)
	 	 	 	 

(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Officer Title if Obligor is an Entity	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 		 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 		 	 	 	 
	Address of Obligor	 	 	 	 	 	 

7

 

EXHIBIT “A”

MEMBER SIGNATURE PAGE

ADDENDA

TO THE

SECOND AMENDED AND RESTATED OPERATING AGREEMENT OF

CARDINAL ETHANOL, LLC

     The undersigned does hereby represent and warrant that the undersigned, as a condition to
becoming a Member in Cardinal Ethanol, LLC, has received a copy of the Second Amended and Restated
Operating Agreement, dated February 1, 2006, and, if applicable, all amendments and modifications
thereto, and does hereby agree that the undersigned, along with the other parties to the Second
Amended and Restated Operating Agreement, shall be subject to and comply with all terms and
conditions of said Second Amended and Restated Operating Agreement in all respects as if the
undersigned had executed said Second Amended and Restated Operating Agreement on the original date
thereof and that the undersigned is and shall be bound by all of the provisions of said Second
Amended and Restated Operating Agreement from and after the date of execution hereof.

	 	 	 	 	 
	Individuals:

	 	Entities:	 	 
	 
	 	 	 	 
	 

          Name of Individual Member (Please Print)

	 	 

Name of Entity (Please Print)
	 	 
	 
	 	 	 	 
	 

          Signature of Individual

	 	 

Print Name and Title of Officer
	 	 
	 
	 	 	 	 
	 

          Name of Joint Individual Member (Please Print)

	 	 

Signature of Officer
	 	 
	 
	 	 	 	 
	 

          Signature of Joint Individual Member

	 	 	 	 

Agreed and accepted on behalf of the

Company and its Members:

	 	 	 	 	 
	CARDINAL ETHANOL, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 

	 	 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]