Document:

Exhibit

Cardinal Ethanol, LLC
Employee Bonus Plan
Amended and Restated for Fiscal Year 2016-17
(Effective 10-1-16)
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, 2016 to September 30, 2017 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, 2017 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)27,751 or more..................................................         0% payout
2)27,750 - 26,751.................................................         1% payout
3)26,750 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) 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)  Near Miss Reporting (complete 2) (1% max payout)
1) Two (2) Near Miss Reports completed (Plant or Internal Control)
3)  Improve ERI Audit Score (based on bi-annual Audit scores/ranking)(1% max payout)
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 93.26%
Q3 Payout = Completion of all non-capital deficiencies highlighted and metioned in the latest ERI Safety Audit within 90 days of issuance of the ERI Safety Audit Report
Q4 Payout = A Safety Audit Score greater than the previous ERI Safety Audit score.

Personal Incentive (10% additional opportunity available)
Available to the following positions: Production Manager, EHS 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 30%......................................................     0% payout
•Ranking between 30% and 20%...............................................     1% payout
•Ranking in the top 20%.............................................................     2% payout 
Production - Ethanol Throughput, denatured gallons (2% max payout)
•Less than 120.0 M gallons........................................................     0% payout
•120.0 M to 125.0 M gallons.......................................................     1% payout
•125.0 M to 130.0 M gallons.......................................................     1 1/2% payout
•Greater than 130.0 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) (3%)
•Greater than 328 hours downtime............................................     0% payout
•328 to 280 hours downtime......................................................     1% payout
•279 to 240 hours downtime......................................................     2% payout 
•Less than 240 hours downtime.................................................     3% payout 
Project Management - (Based on project budget and timeline provided by management) (2%)
•Capital Projects completed on-time.........................................     1% payout
•Capital Projects completed on budget......................................     1% payout
EHS Manager: Personal Goals (annual payout)
Safety - Improve ERI Safety Audit Score (based on last audit score prior to year end) (3% max payout)
•Ranking below the 2nd Quartile...............................................     0% payout
•Ranking in the 2nd Quartile......................................................     2% payout
•Ranking in the 1st Quartile.......................................................     3% 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 
Environmental Compliance - Maintain Permit Parameters (4%)
•No EHS violations resulting in fines (EPA, OSHA, IDEM, etc.)    3% payout
Food Safety Modernization Act - Compliance (3%)
•Failure to meet compliance due date.........................................     0% payout
•Fully Compliant by September 17, 2017 due date....................     3% payout

Controller: Personal Goals (annual payout)
Financial Planning - Prepare the Annual Budget (with help from the CFO if necessary) (3%)
(Budget Ready for October 2017 Board Meeting)
		
	•
	NO...........................................................................................    0% payout

		
	•
	YES.........................................................................................     3% payout

Tax/K-1 - Completed K-1s in a timely manner before the date of the annual meeting (2%)
•Completion on or after the Annual Meeting date....................     0% payout
•Completion before the Annual Meeting date...........................     1% payout
•Completion by January 31, 2017.............................................     2% payout 
FY 10-K - Close for timely SEC filing and bank/Investor Obligations (3%)
•Completion after December 13, 2016......................................     0% payout
•Completion on or before December 13, 2016..........................     1% payout
•Completion on or before December 1, 2016............................     2% payout
•Completion on or before Thanksgiving 2016...........................    3% payout
Accounting - Preparation of Financial Statements (5 day close) (2%)
		
	•
	Preliminary Financials ready in 5 days 9 of 12 months.............     1% payout

		
	•
	Preliminary Financials ready in 5 days 11 of 12 months...........     2% 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. 40% of this payout will be tied to Production Manager, Maintenance Manager, EHS Manager, and Controller meeting their individual goals.  60% of this payout will be based on Production and Capital Management goals.
“Senior Management”: Goals (annual payout) (CEO, CFO, Commodity Manager, Plant Manager) 
1)  Leadership/Management/Coaching - Develop and Support Mid-management (4%)
•Average completion score of mid management incentive award times 40% award value.
2)  Production & Capacity Goals (Based on Denatured Production) (3%)
•Fiscal Year End Production > 120,000,000 MG......................     1% payout
•Fiscal Year End Production > 125,000,000 MG......................     2% payout
•Fiscal Year End Production > 130,000,000 MG......................     3% payout
3)  Capital Project Management -  (3% maximum payout)
•Capital Project Detail Packet Completed.................................    1% payout
•On-Time & On-Budget Completion.........................................    1% payout
•Post Project Analysis Completed..............................................    1% payoutExhibit

Exhibit 10.1
THE J. M. SMUCKER COMPANY
RESTRICTED STOCK AGREEMENT

WHEREAS, ____________ (the “Grantee”) is an employee of The J. M. Smucker Company, an Ohio corporation (the “Company”), or one of its Subsidiaries; and
WHEREAS, the execution of an agreement in the form hereof (this “Agreement”) has been authorized by a resolution of the Executive Compensation Committee (the “Committee”) of the Board, pursuant to The J. M. Smucker Company 2010 Equity and Incentive Compensation Plan (the “Plan”), as of ____________ (the “Date of Grant”);
NOW, THEREFORE, the Company hereby grants to the Grantee ____________ shares of Restricted Stock (the “Restricted Stock”), effective as of the Date of Grant, subject to the terms and conditions of the Plan and the following additional terms, conditions, limitations and restrictions.

ARTICLE I

DEFINITIONS

All terms used herein with initial capital letters and not otherwise defined herein that are defined in the Plan shall have the meanings assigned to them in the Plan.

ARTICLE II

CERTAIN TERMS OF THE RESTRICTED STOCK

1.Issuance of Restricted Stock.  The Restricted Stock covered by this Agreement shall be issued to the Grantee effective upon the Date of Grant.  The Restricted Stock shall be registered in the Grantee’s name and shall be fully paid and nonassessable.  Any certificates or evidence of award shall bear an appropriate legend referring to the restrictions hereinafter set forth.

2.Restrictions on Transfer of Shares.  The Restricted Stock may not be sold, exchanged, assigned, transferred, pledged, encumbered or otherwise disposed of by the Grantee, except to the Company, unless the Restricted Stock has become nonforfeitable as provided in Article II, Section 3 hereof; provided, however, that the Grantee’s rights with respect to such Restricted Stock may be transferred by will or pursuant to the laws of descent and distribution.  Any purported transfer or encumbrance in violation of the provisions of this Article II, Section 2 shall be void, and the other party to any such purported transaction shall not obtain any rights to or interest in such Restricted Stock.  The Committee in its sole discretion, when and as permitted by the Plan, may waive the restrictions on transferability with respect to all or a portion of the Restricted Stock.

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3.Vesting of Restricted Stock.

(a)All of the Restricted Stock covered by this Agreement shall become nonforfeitable on the ______ anniversary of the Date of Grant, which such date will be __________, if the Grantee shall have remained in the continuous employ of the Company or a Subsidiary during that ______-year period (such period, the “Vesting Period”).

(b)Notwithstanding the provisions of Article II, Section 3(a), if the Grantee dies or becomes permanently disabled during the Vesting Period, then a number of shares of Restricted Stock will become nonforfeitable, with such number being determined by multiplying the number of shares of Restricted Stock granted by this Agreement by a fraction, the numerator of which is the number of days the Grantee was actively employed by the Company or a Subsidiary during the Vesting Period, and the denominator of which is the total number of days in the Vesting Period. 

(c) Notwithstanding the provisions of Article II, Sections 3(a) or (b), all of the Restricted Stock shall immediately become nonforfeitable upon the occurrence of a Change in Control during the Vesting Period.

(d)Notwithstanding the provisions of Article II, Sections 3(a) or (b), if the Grantee leaves the employ of the Company or a Subsidiary during the Vesting Period under circumstances determined by the Committee to be for the convenience of the Company, the Committee may, when and as permitted by the Plan, determine that all of the Restricted Stock covered by this Agreement shall become nonforfeitable.

4.Forfeiture of Shares.  The Restricted Stock shall be forfeited, except as otherwise provided in Article II, Section 3 above, if the Grantee ceases to be employed by the Company or a Subsidiary prior to the end of the Vesting Period or in the event the Committee determines the Grantee has engaged in Detrimental Activity as such term is defined in the Plan.  In the event of a forfeiture, any certificate(s) representing the Restricted Stock or any evidence of direct registration of the Restricted Stock covered by this Agreement shall be cancelled. 

5.Dividend, Voting and Other Rights.  

(a)       Except as otherwise provided herein, from and after the Date of Grant, the Grantee shall have all of the rights of a shareholder with respect to the Restricted Stock covered by this Agreement, including the right to vote such Restricted Stock and receive any dividends that may be paid thereon; provided, however, that any additional Common Shares or other securities that the Grantee may become entitled to receive pursuant to a stock dividend, stock split, combination of shares, recapitalization, merger, consolidation, separation, or reorganization or any other change in the capital structure of the Company shall be subject to the same restrictions as the Restricted Stock covered by this Agreement.
(b)        Cash dividends on the Restricted Stock covered by this Agreement shall be paid to the Grantee pursuant to the Company’s then-current articles of incorporation and reported on the Grantee’s annual wage and tax statement (Form W-2) as compensation.

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6.Retention of Restricted Stock in Book Entry Form.  The Restricted Stock will be held at the Company’s transfer agent in book entry form with appropriate restrictions relating to the transfer of such Restricted Stock until all restrictions thereon will have lapsed.

ARTICLE III

GENERAL PROVISIONS

7.Compliance with Law.  The Company shall make reasonable efforts to comply with all applicable federal and state securities laws; provided, however, notwithstanding any other provision of this Agreement, the Company shall not be obligated to issue any Common Shares pursuant to this Agreement if the issuance thereof would result in a violation of any such law.

8.Withholding Taxes.  To the extent that the Company or any Subsidiary is required to withhold federal, state, local or foreign taxes in connection with the Restricted Stock or any delivery of Common Shares pursuant to this Agreement, and the amounts available to the Company or such Subsidiary for such withholding are insufficient, it will be a condition to the receipt of Restricted Stock or such delivery that the Grantee make arrangements satisfactory to the Company for payment of the balance of such taxes required to be withheld.  The Grantee hereby elects to satisfy this withholding obligation by having withheld, from the Common Shares otherwise deliverable to the Grantee, Common Shares having a value equal to the amount required to be withheld (except where the Grantee has made an election under Section 83(b) of the Code with respect to the Common Shares subject to delivery).  The Common Shares so retained shall be credited against such withholding requirement at the Market Value per Share on the date of such retention.  The Company may, at the request of the Grantee, withhold Common Shares for payment of taxes in excess of the minimum amount of taxes required to be withheld; provided, however, that in no event shall the Company withhold Common Shares for payment of taxes in excess of the maximum statutory individual tax rate in the jurisdiction(s) applicable to the Grantee.

9.Continuous Employment.  For purposes of this Agreement, the continuous employment of the Grantee with the Company or a Subsidiary shall not be deemed to have been interrupted, and the Grantee shall not be deemed to have ceased to be an employee of the Company or Subsidiary, by reason of the (a) transfer of his or her employment among the Company and its Subsidiaries or (b) a leave of absence approved by a duly constituted officer of the Company or a Subsidiary.  

10.Right to Terminate Employment.  No provision of this Agreement shall limit in any way whatsoever any right that the Company or a Subsidiary may otherwise have to terminate the employment of the Grantee at any time.  Nothing herein shall be deemed to create a contract or a right to employment with respect to the Grantee. 

11.Relation to Other Benefits.  Any economic or other benefit to the Grantee under this Agreement or the Plan shall not be taken into account in determining any benefits to which the Grantee may be entitled under any profit-sharing, retirement, or other benefit or compensation plan maintained by the Company or a Subsidiary and shall not affect the amount of any life insurance coverage available to any beneficiary under any life insurance plan covering employees of the Company or a Subsidiary. 

3

12.Amendments.  Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto; provided, however, that no amendment shall impair the rights of the Grantee under this Agreement without the Grantee’s consent; further provided, however, that the Grantee’s consent shall not be required to an amendment that is deemed necessary by the Company to ensure compliance with (or exemption from) Section 409A of the Code or the Dodd-Frank Wall Street Reform and Consumer Protection Act or any regulations promulgated thereunder.

13.Severability.  In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable. 

14.Relation to Plan.  This Agreement is subject to the terms and conditions of the Plan.  In the event of any inconsistency between the provisions of this Agreement and the Plan, the Plan shall govern.  The Committee acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise herein, have the right to determine any questions which arise in connection with the grant of the Restricted Stock.   

15.Nature of Grant.  The Grantee agrees that: (a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time; (b) the grant of Restricted Stock is voluntary and occasional and does not create any contractual or other right to receive future grants of Restricted Stock, or benefits in substitution of Restricted Stock, even if Restricted Stock have been granted repeatedly in the past; (c) all decisions with respect to future Restricted Stock grants will be at the sole discretion of the Company; (d) participation in the Plan is voluntary; (e) the Restricted Stock are not a part of normal or expected pay package for any purposes; (f) if he or she is a Covered Employee, within the meaning of the Company's Clawback of Incentive Compensation Policy (the “Policy”), he or she acknowledges and accepts the terms and conditions of the Policy as in effect on the Date of Grant; and (g) in consideration of the grant of Restricted Stock, no claim or entitlement to compensation or damages will be created by any forfeiture or other termination of the Restricted Stock or diminution in value of the Restricted Stock, and the Grantee releases the Company and its Subsidiaries from any such claim that may arise.  If any such claim is found by a court of competent jurisdiction to have been created, then, by signing this Agreement, the Grantee will be deemed irrevocably to have waived the Grantee’s entitlement to pursue such claim. 

16.Electronic Delivery.  The Company may, in its sole discretion, deliver any documents related to the Restricted Stock and the Grantee’s participation in the Plan, or future awards that may be granted under the Plan, by electronic means or to request the Grantee’s consent to participate in the Plan by electronic means.  The Grantee consents to receive such documents by electronic delivery and, if requested, agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

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17.Governing Law.  This Agreement is made under, and shall be governed by and construed in accordance with the internal substantive laws of the State of Ohio. 

This Agreement is executed by the Company as of ____________.

THE J. M. SMUCKER COMPANY        

_______________________________
By:     
Title:    

The undersigned hereby acknowledges receipt of an executed original of this Agreement, together with a copy of the prospectus for the Plan, dated November 17, 2010, summarizing key provisions of the Plan, and accepts the award of Restricted Stock granted hereunder on the terms and conditions set forth herein and in the Plan.  

Date:  ____________        _______________________________
Grantee:  _______________________

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