Document:

Exhibit

Confidential Treatment Requested. Confidential portions of this document have been redacted and have been separately filed with the Commission.

AMENDMENT NO. 3
TO ETHANOL PURCHASE AND SALE AGREEMENT
BETWEEN CARDINAL ETHANOL, LLC AND MUREX N.A., LTD.
DATED DECEMBER 18, 2006
THIS AMENDMENT NO. 3 TO the ETHANOL PURCHASE AND SALE AGREEMENT (“Amendment”) is made and entered into as of this twenty-seventh (27th) day of July, 2018 (the “Signing Date”) by and between Murex LLC, a Texas limited liability company (“Murex”), (successor in interest to Murex N.A., Ltd.), located at 7160 North Dallas Parkway, Suite 300, Plano, Texas 75024, and Cardinal Ethanol, LLC, an Indiana limited liability company (“Cardinal”), located at 1554 N. 600 E., Union City, IN 47390.
WITNESSETH:
WHEREAS, Murex and Cardinal entered into that certain Ethanol Purchase and Sale Agreement on December 18, 2006 (the “Agreement”); and
WHEREAS, Murex and Cardinal entered Amendment 1 to the Agreement on July 6, 2009; and 
WHEREAS, Murex and Cardinal entered Amendment 2 to the Agreement on November 22, 2011; and 
WHEREAS, Murex and Cardinal desire to amend certain provisions of said Agreement.
NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
ARTICLE I
Amendments
Section 1.01 Amendment to Article 1. Definitions. Effective as of the date hereof, Article 1 of the Agreement is amended to read as follows:

            Section 1.4 “Buyer” means Murex LLC, a Texas limited liability company Effective January 1, 2013, Murex N.A., Ltd., a Texas limited partnership, converted to Murex LLC, a Texas limited liability company with the address of 7160 North Dallas Parkway, Suite 300, Plano, Texas 75024. Both are treated as partnerships for federal tax purposes. Under Treasury Regulation 30 1.7701-3, the Federal Employer Identification Number did not change. The ownership, employees, contact information and business of the company did not change. Only the company name and type of entity changed.

Section 1.16 “Plant” means the Ethanol production plant located in Randolph County, Indiana, with initial production of 100 million gallons and additional production due to expansion and improvements in efficiency estimated at but not guaranteed to be 132 million gallons per year.
Section 1.02 Amendment to Article 1. Definitions. Effective as of the Effective Date shown below, Article 1 of the Agreement is amended to read as follows:

Section 1.5 “Commission” means for each net gallon that Buyer takes under this Agreement, Buyer shall receive *** per gallon as defined in Section 7.1.

Section 1.10 “Effective Date” means November 18, 2019.

Section 1.03 Amendment to Section 3.1 Initial Term; Renewal. Effective as of the Effective Date, Section 3.1 of the Agreement is amended to read as follows:

      Section 3.1. Initial Term; Renewal.  The initial term of the Agreement shall be for an eleven (11) year period (the “Initial Term”), beginning on November 18, 2008, the Date of First Delivery. The Initial Term shall be followed by a renewal term (the “Renewal Term”) of slightly more than three years (ending November 30, 2022) that renews automatically for one-year periods unless notice is given by either party at least ninety (90) days prior to the end of the current term. 

Section 1.04 Addition of Section 4.4 D6 Ethanol Renewable Identification Numbers (“RINs”). Effective as of the Effective Date, Section 4.4 of the Agreement is added to read as follows:

Section 4.4 D6 Ethanol RINs. On all ethanol produced, Buyer will handle all RIN activity for Seller through the Environmental Protection Agency (“EPA”) Moderated Transaction System (''EMTS''). In addition, Buyer will submit all regulatory reports required by the EPA following Seller's review and approval. Buyer represents and warrants that all RIN activity reports and regulatory reports will be conducted and completed in accordance with and as required by all applicable laws and regulations. 

Section 1.05 Amendment to Section 7.1(a) Determination of Price. Effective as of the Effective Date, Section 7.1(a) of the Agreement is amended to read as follows:

Section 7.1(a) Determination of Price. For all sales of Ethanol by Buyer, where Buyer has agreed to sell Ethanol to third party customers, Buyer agrees to pay to Seller for each Gallon of Ethanol Delivered determined in accordance with Section 5.2 (the “Purchase Price”). The Purchase Price shall be equal to the actual sale price invoiced by Buyer for such Ethanol re-sold by Buyer to such third party customers for the most recent week (the “Sale Price”) less: (i) all Resale Costs, (ii) Taxes (as defined in Section 7.2) paid by Buyer, and (iii) the Commission of *** per gallon.

Section 1.06 Amendment to Section 8.2 Rail Shipment. Effective as of the Signing Date, Section 8.2 of the Agreement is amended to read as follows:

Section 8.2    Rail Shipment. If the Ethanol is being transported by rail, the cost of rail transportation will include, but not be limited to, freight from Delivery Point to destination, accessorial charges, fuel surcharges and excess empty mileage charges.

Section 1.07 Addition of Section 8.3 Tank Cars. Effective as of the Signing Date, Section 8.3 of the Agreement is added to read as follows:

    

*** Confidential material redacted and filed separately with the Commission

Section 8.3 Tank Cars. Buyer will be responsible for providing a minimum of two hundred twenty five (225) Tank Cars needed for rail transportation and will manage Seller’s Tank Car fleet.  Buyer will lease DOT-117 Tank Cars to Seller at *** per Tank Car per month. Buyer will also lease DOT-111 Tank Cars to Seller ***. These amounts will billed by Buyer to Seller on or before the first (1st) day of the month for the previous month, and Seller will pay Buyer no later than the tenth (10th) day of each month for rail car leases. Buyer and Seller will develop a plan and work together to satisfy Seller’s Tank Car needs.

Section 1.08 Addition of Section 8.4 Rail Allowance. Effective as of the date hereof, Section 8.4 of the Agreement is added to read as follows:

Section 8.4 Rail Allowance. Any rail allowance based exclusively on Buyer’s entire rail fleet system will be for Buyer’s account.

Section 1.09 Addition of Section 9.2 Sewaren, New Jersey Terminalling Agreement. Effective as of the date hereof, Section 9.2 of the Agreement is added to read as follows:

Section 9.2 Sewaren, New Jersey Terminalling Agreement. On September 26, 2014, Buyer and Seller entered into a separate Terminalling Agreement providing 60,000 barrels of commingled Ethanol storage at Motiva Enterprises LLC’s (“Motiva”) Sewaren, New Jersey facility. Buyer has a separate agreement with Motiva. Both agreements expire on January 31, 2019. Buyer and Seller will work with Motiva to lower storage costs and extend the Terminalling Agreements to coincide with the termination date of the Renewal Term, November 30, 2022.

Section 1.10 Amendment of Section 10.1 Purchase Price. Effective as of the Signing Date, Section 10.1 of the Agreement is amended to read as follows:

Section 10.1 Purchase Price. Buyer shall pay to Seller the net Purchase Price for each Gallon of Ethanol Delivered under this Agreement as provided in Section 7.1(a) by direct wire transfer or electronic transfer to Seller’s designated bank account. The direct wire transfer or electronic transfer to Seller’s designated bank account (“Payment”) shall be made no later than the *** day after the Friday of the week in which Seller issues the bill of lading for such Gallons sold and delivered during said week. At the time of each Payment Buyer shall forward a statement to Seller setting forth in reasonable detail all third party buyer purchase terms including without limitation, the quantity of Ethanol sold, the purchase prices, and all Resale Costs, Transportation Costs and Commissions directly relating to such third party sale and purchase terms, and the quantity and price of Ethanol purchased by Buyer for its own account (if any). 

Section 1.11 Addition of Section 19.20 Other Terms and Conditions. Effective as of the Effective Date, Section 19.20 is added to the Agreement as follows:

Section 19.20 Other Terms and Conditions. Buyer and Seller will continue to look for more efficient reporting and data transfer, and endeavor to implement best practices for mutual benefit.

*** Confidential material redacted and filed separately with the Commission

IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the date first written above.

BUYER:

MUREX LLC
a Texas limited liability company

By: /s/ Robert C. Wright                                      
      Robert C. Wright
       President

SELLER:

CARDINAL ETHANOL, LLC
an Indiana limited liability company

By: /s/ Jeffrey L. Painter                                        
Name: Jeffrey L. Painter                                        
Title:    CEO & PresidentExhibit

Cardinal Ethanol, LLC
Employee Bonus Plan
Amended and Restated for Fiscal Year 2018-19
(Effective 10-1-18)

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 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, 2018 to September 30, 2019 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, 2019 once the fiscal year end results are calculated, reviewed, 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 goal accomplishments 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 30%.......................................        0% payout

		
	2)
	Ranking in the top 30% - 20%......................................        1% payout

		
	3)
	Ranking between 20% - 15%......................................        2% payout

		
	4)
	Ranking in the top 15%............................................        3% payout

		
	•
	Goal #2 Optimize Natural Gas Usage (BTU per Anhydrous Ethanol Gallon) (2% max payout)

		
	1)
	26,500 or more.................................................        0% payout

		
	2)
	26,499 - 25,751 .................................................        1% payout

		
	3)
	25,750 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 30%.....................................    0% payout

		
	2)
	Ranking between 30% and 20%..............................    .    1% payout

		
	3)
	Ranking in the top 20%............................................    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) Individual Employee Participation Task from the below menu:
		
	◦
	Employee Participation Menu (One item per employee)

Safety Program Area Audit Complete
Non-Routine Task Pre-Work Audit Completed
Lead a Toolbox Talk
Review, update, and complete PSSR activity.
LOTO/Confined Space Program Review
Contractor Observation, Review and Evaluation
Participate and complete an optional Safety Webinar.
Participate on an Internal Control committee.
		
	2)
	Near Miss Reporting (complete 2) (1% max payout)

		
	◦
	Two (2) Near Miss Reports completed (Plant, Internal Control, Cyber)

		
	3)
	Improve ERI Audit Score (based on bi-annual Audit scores/ranking) (1% max payout)

(required a minimum of 1 above to be eligible for item #3)
Q1 Payout = Completion of all non-capital deficiencies highlighted and mentioned in the      
       latest ERI Safety Audit. Completed by October 31, 2018.
Q2 Payout = A Safety Audit Score greater than the previous ERI Safety Audit Score (89.58%).
Q3 Payout = Completion of all non-capital deficiencies highlighted and mentioned in the      
       latest ERI Safety Audit within 90 days of issuance of ERI Safety Audit Report.
Q4 Payout = Minimum Loss Leader Assessment score of 80%. 
      

Grain Department Quarterly Incentive (replaces number 1, 2, & 3 above)
(Deryl, Stephanie, Janel, Ben)
Providing an incentive to the grains department represents one way to allow the grains department to achieve goals that are critical to maintaining customer focus, grain origination, and management of commodity risk associated with corn origination.
		
	•
	Goal # 1 - Direct Farm Visits (Individual) (3% max. payout)

		
	1)
	Less than three (3) farm visits......................................................       0% payout

		
	2)
	Three (3) to Five (5) farm visits....................................................    1% payout

		
	3)
	Six (6) to Seven (7) farm visits......................................................    2% payout

		
	4)
	Eight (8) or more farm visits.........................................................     3% payout

		
	•
	Goal # 2 - Advanced Marketing Alternative Contracts: Increase revenue by “selling” alternative grain contracts. Contracts included in this goal are: HTAs, Averaging, Bushels Only/Premium Offers, Minimum Priced, Min/Max Priced, Accumulators, and Managed Bushels with annual true-up (Group) (2% max. payout)

		
	1)
	Less than 7.5% of all bushels are added value contracts................................     0% payout

		
	2)
	7.5% - 10% of all bushels are value added contracts....................................    1% payout

		
	3)
	Greater than 10% of all bushels are value added contracts............................... 2% payout

		
	•
	Goal # 3 - Grain Trading Revenue (end of year annual true-up) (2% max. payout)

		
	1)
	Trading P & L Gross Margin of > $375,000..........................................    1% payout

		
	2)
	Trading P & L Gross Margin of > $500,000..........................................    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 Individual Employee Participation (1% max payout)

Participate in one (1) Safety Committee meeting and one (1) Individual Employee Participation Task from the below menu:
		
	◦
	Individual Employee Participation Menu

Safety Program Area Audit Complete
Non-Routine Task Pre-Work Audit Completed
Lead a Toolbox Talk
Review, update, and complete PSSR activity.
LOTO/Confined Space Program Review
Contractor Observation, Review and Evaluation
Participate and complete an optional Safety Webinar.
Participate on an Internal Control committee.

2)  Near Miss Reporting (complete 2) (1% max payout)
		
	◦
	Two (2) Near Miss Reports completed (Plant, Internal Control, Cyber)

3)  Improve ERI Audit Score (based on bi-annual Audit scores/ranking) (1% max payout)
(required a minimum of 1 above to be eligible for item #3)
Q1 Payout = Completion of all non-capital deficiencies highlighted and mentioned in the      
       latest ERI Safety Audit. Completed by October 31, 2018.
Q2 Payout = A Safety Audit Score greater than the previous ERI Safety Audit Score (89.58%).
Q3 Payout = Completion of all non-capital deficiencies highlighted and mentioned in the      
       latest ERI Safety Audit within 90 days of issuance of ERI Safety Audit Report.
Q4 Payout = Minimum Loss Leader Assessment score of 80%.

Administrative Incentive (replaces 1, 2, & 3 basic Bonus Plan)
(Ashleigh, Jacqueline, Lacy)

Timely completion of financial statement, filings, and investor information is important to maintain a successful, well established image to the customers, the employees and unit holders. Adding incentive goals to the Administration Staff, puts the control and success of those activities into the hands of those who have the biggest impact on completion of them.  

Goal #1 - SEC Reporting (3% max payout)
A)  Quarter 1  FY 10-K - Close for timely SEC filing and meeting bank and investor expectations/obligations
		
	•
	Completion after December 15, 2018 .............................................    0% payout

		
	•
	Completion on or before December 15, 2018 .................................    1% payout

		
	•
	Completion on or before December 1, 2018 ....................................    2% payout

		
	•
	Completion on or before Thanksgiving 2018 ..................................    3% payout

B)    Quarters 2, 3, & 4 Quarterly SEC Reporting - Have filing information completed so that Audit Committee meeting takes place 10 days prior to filing deadline
•Audit Committee meeting 2 days prior to deadline...........................    0% payout
•Audit Committee meeting 6 days prior to deadline...........................    1% payout
•Audit committee meeting 10 days prior to deadline............................    3% payout

Goal #2 - Accounting: Preparation of Financial Statements (5 day close) (2% max payout)
•Preliminary Financials ready in 5 days 2 of 3 months.........................    1% payout
•Preliminary Financials ready in 5 days 3 of 3 months .........................    2% payout
Goal #3 - Sarbanes-Oxley: Increase internal controls by reducing findings from Internal Control Audit (2% max payout)
•Four (4) or more Audit findings...........................................................    0% payout
•Two (2) -Three (3) audit findings.........................................................    1% payout
•Less than Two (2) audit findings..........................................................    2% payout
Goal #4 - Improve Safety Record: Individual  Safety Participation; subject to verification and approval by management. (All Quarters) (3% max payout)
1) Safety Committee Meeting and Individual Employee Participation (1% max payout)
Participate in one (1) Safety Committee meeting and one (1) Individual Employee Participation Task from the below menu:
◦Individual Employee Participation Menu 
Safety Program Area Audit Complete
Non-Routine Task Pre-Work Audit Completed
Lead a Toolbox Talk
Review, update, and complete PSSR activity.
LOTO/Confined Space Program Review
Contractor Observation, Review and Evaluation
Participate and complete an optional Safety Webinar.
Participate on an Internal Control committee.
2) Near Miss Reporting (complete 2) (1% max payout)
•Two (2) Near Miss Reports completed (Plant, Internal Control, Cyber)
3) Improve ERI Audit Score (based on bi-annual Audit scores/ranking) (1% max payout) 
(required a minimum of 1 above to be eligible for item #3) 

Q1 Payout = Completion of all non-capital deficiencies highlighted and mentioned in the latest ERI Safety Audit. Completed by October 31, 2018.
Q2 Payout = A Safety Audit Score greater than the previous ERI Safety Audit Score (89.58%).
Q3 Payout = Completion of all non-capital deficiencies highlighted and mentioned in the latest ERI Safety Audit within 90 days of issuance of ERI Safety Audit Report.
Q4 Payout = Minimum Loss Leader Assessment score of 80%.

Shared Administration and Grain Incentive (Replaces 1, 2, & 3 of base bonus plan)
(Stephen)
Goal #1 - SEC Reporting (1.5% max payout)
A) Quarter 1 FY 10-K - Close for timely SEC filing and bank/Investor Obligations
•Completion after December 15, 2018..........................................    0% payout
•Completion on or before December 15, 2018.............................    0.5% payout
•Completion on or before December 1, 2018................................    1% payout
•Completion on or before Thanksgiving 2018..............................    1.5% payout
B) Quarters 2, 3, & 4: Quarterly SEC Reporting - Have filing information completed so that Audit Committee meeting takes place 10 days prior to filing deadline
•Audit Committee meeting 2 days prior to deadline....................    0% payout
•Audit Committee meeting 6 days prior to deadline.....................    0.5% payout
•Audit committee meeting 10 days prior to deadline.....................    1.5% payout
Goal #2 - Accounting: Preparation of Financial Statements (5 day close) (1% max payout)
•Preliminary Financials ready in 5 days 2 of 3 months...................    0.5% payout
•Preliminary Financials ready in 5 days 3 of 3 months..................    1.0% payout
Goal #3 - Sarbanes-Oxley: Increase internal controls by reducing findings from Internal Control Audit (1% max payout)
•Four (4) or more Audit findings....................................................    0.0% payout
•Two (2) -Three (3) audit findings .................................................    0.5% payout
•Less than Two (2) audit findings ..................................................    1.0% payout
Goal #4 - Improve Safety Record: Individual Safety Participation; subject to verification and approval by management.
(All Quarters) (3% max payout)
1) Safety Committee Meeting and Individual  Employee Participation (1% max payout)
Participate in one (1) Safety Committee meeting and one (1) Individual Employee Participation Task from the below menu:
•Individual Employee Participation Menu 
Safety Program Area Audit Complete
Non-Routine Task Pre-Work Audit Completed
Lead a Toolbox Talk
Review, update, and complete PSSR activity.
LOTO/Confined Space Program Review
Contractor Observation, Review and Evaluation
Participate and complete an optional Safety Webinar.
Participate on an Internal Control committee.

2) Near Miss Reporting (complete 2) (1% max payout)
o Two (2) Near Miss Reports completed (Plant, Internal Control, Cyber)

3) Improve ERI Audit Score (based on bi-annual Audit scores/ranking) (1% max payout) 
(required a minimum of 1 above to be eligible for item #3) 
Q1 Payout = Completion of all non-capital deficiencies highlighted and mentioned in the latest ERI Safety Audit within 90 days of issuance of ERI Safety Audit Report.
Q2 Payout = A Safety Audit Score greater than the previous ERI Safety Audit Score (90.72%).
Q3 Payout = Completion of all non-capital deficiencies highlighted and mentioned in the latest ERI Safety Audit within 90 days of issuance of ERI Safety Audit Report.
Q4 Payout = A Safety Audit Score greater than the previous ERI Safety Audit Score or 93%.

Goal #4 - Direct Farm Visits (Individual) (1.5% max. payout)
1)    Less than two (2) farm visits ..........................................        0% payout
2)    Two (2) farm visits .........................................................        0.5% payout
3)    Three (3) to four (4) farm visits ......................................        1.0% payout
4)    Five (5) or more farm visits.............................................         1.5% payout

Goal #5  - Advanced Marketing Alternative Contracts: Increase revenue by "selling" alternative grain contracts. Contracts included in this goal are: HTAs, Averaging, Bushels Only/Premium Offers, Minimum Priced, Min/Max Priced, Accumulators, and Managed Bushels with annual true-up (Group) (1% max. payout)

1)Less than 7.5% of all bushels are added value contracts...         0% payout
2)7.5% - 10% of all bushels are value added contracts.........    0.5% payout
3)Greater than 10% of all bushels are value added contracts..    1.0% payout

Goal #6 - Grain Trading Revenue (end of year annual true-up) (1% max. payout)
1)Trading P & L Gross Margin of  > $375,000 ......................    0.5% payout
2)Trading P & L Gross Margin of  > $500,000 .......................    1.0% payout

Personal Incentive (10% additional opportunity available)
Available to the following positions: Production Manager, EHS Manager, Maintenance Manager

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.

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

Production - Improve Ranking of Ethanol Yield - (Christianson Benchmarking; All Plants, undenatured, moisture adjusted gallons per bushel ground based on corn at 15%) (2% max payout)
		
	•
	Ranking below the top 35%........................................................    0% payout

		
	•
	Ranking in the top 35% - 30%...........................................................    1% payout

		
	•
	Ranking in the top 30% - 20%..........................................................  1 1⁄2 payout

		
	•
	Ranking in the top 20%.................................................................    2% 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 30%..............................................................     0% payout

		
	•
	Ranking between 30% and 20%.........................................................     1% payout

		
	•
	Ranking in the top 20%..........................................................................     2% payout

Production - Ethanol Throughput, denatured gallons (3% max payout)
		
	•
	Less than 130,000,000 gallons ...................................................    ..0% payout

		
	•
	> 130,000,000 gallons ...............................................................1% payout

		
	•
	> 134,000,000 gallons ..............................................................2% payout

		
	•
	> 138,000,000 gallons .............................................................. 3% payout

PSM Compliance Program - Identify, Develop, and Track (1% max payout).
		
	•
	Identify and Complete ALL PSM required task, capital and non-capital projects,

through MOCs, SDRs, PSSRs, etc..................................................  1% 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

Maintenance - Reduction of supply cost (Based on Christianson Benchmarking for “All Plants - Plant Supplies/Repair/Maintenance”) (3% 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) ...........................................   3% payout

Maintenance - Uptime (includes all downtime) (4%)
		
	•
	Annual Maintenance Shutdown not to exceed 240 hours.......................     1% payout

		
	•
	Downtime outside of Annual Maintenance Shutdown

		
	–
	More than 240 hours downtime............................................      0% payout

		
	–
	240 to 193 hours downtime ..................................................  1% payout

		
	–
	192 to 145 hours downtime................................................... 2% payout

		
	–
	144 hours downtime or less ..................................................  3% payout

PSM Compliance Program - Identify, Develop, and Track (1% max payout).
		
	•
	Identify and Complete ALL PSM required task, capital and non-capital projects,

through MOCs, SDRs, PSSRs, etc................................................. 1% payout

EHS Manager: Personal Goals (annual payout)
Safety - Improve ERI Safety Audit Score (based on last audit score prior to yearend) (3% max payout)
		
	•
	Ranking below the 2nd Quartile............................................................ 0% payout

		
	•
	Ranking in the 2nd Quartile.............................................................. 2% payout

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

Environmental Compliance - Maintain Permit Parameters (4% max payout)
		
	•
	>1 EHS violations resulting in fines (EPA, OSHA, IDEM, etc.)        0% payout

		
	•
	1 (one) EHS violations resulting in fines <$10,000             2% payout

		
	•
	No EHS violations resulting in fines (EPA, OSHA, IDEM, etc.)         4% payout

PSM Compliance Program - Identify, Develop, and Track (2% max payout).
		
	•
	Identify and Complete ALL PSM required task, capital and non-capital projects,

 through MOCs, SDRs, PSSRs, etc............................................... 2% payout

Safety - Maintain OSHA Required training programs for personnel (1% max payout)
		
	•
	Has all OSHA training been completed by 9-30-19?

NO ....................................................................................   0% payout
YES .................................................................................... 1% 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. 50% of this payout will be tied to the Production Manager, Maintenance Manager, and the EHS Manager meeting their individual goals. 20% of this payout will be tied to all employee (except for mid managers) average annual score. 30% of this payout will be based on Production improvement.
 
“Senior Management”: Goals (annual payout) (CEO, CFO, Commodity Manager, Plant Manager)
		
	1)
	Leadership/Management/Coaching - Develop and Support Mid-management (5%)

Average completion scores of mid management incentive award times 50% award value.

		
	2)
	Staff Development and Training - Develop programs and processes for employee success (2%)

Average earned score of all employees (excluding mid-management) incentive award times 20% award value.

		
	3)
	Production & Capacity Goals (Based on Denatured Production) (3%)

		
	1)
	Fiscal Year End Production > 130,000,000 MG................... 1% payout

		
	2)
	Fiscal Year End Production > 134,000,000 MG...................... 2% payout

		
	3)
	Fiscal Year End Production > 138,000,000 MG...................... 3% payout

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}]]