Exhibit








Exhibit 10.6A
CHS ANNUAL VARIABLE PAY PLAN 
APPENDIX, PLAN DETAILS - FISCAL 2018    


COMPANY RETURN ON INVESTED CAPITAL (ROIC) and RETURN ON ASSET (ROA) GOALS


	
					
	Performance Targets
	CHS ROIC
	CHS ROA
	Description
	Award as % of Target

	Maximum
	5.7%
	6.0%
	Maximum Performance Goal
	200%

	Target
	4.7%
	5.1%
	Targeted Performance Goal
	100%

	Threshold
	3.7%
	4.3%
	Minimum Performance Goal
	50%






RETURN ON INVESTED CAPITAL (ROIC) EXPLANATION
ROIC is a measurement of how efficiently the company uses its capital and the level of returns on that capital, and is calculated by dividing net operating profit after tax by funded debt plus equity. Details on the ROIC calculation, goal determination and 2018 goals can be answered by the finance contact for your group.
	
		
	ROIC=
	Net Operating Profit After Tax

	*Funded Debt + Equity






*Funded Debt is the average of the funded debt at each of the beginning of and the end of the fiscal year, and Equity is the equity at the beginning of the fiscal year.


RETURN ON ASSETS (ROA) EXPLANATIONRETURN ON ASSETS (ROA) EXPLANATION
ROA is a measurement of how well a company uses its assets to generate earnings and maximizes returns on owner equity and company assets, and is calculated by dividing operating income by total assets minus working capital liabilities. Details on the ROA calculation, goal determination and 2018 goals can be answered by the finance contact for your group. 
	
		
	ROA=
	Operating Income

	*Net Assets






* Net Assets are total assets minus working capital liabilities (current liabilities related to the Business Unit business activities excluding financing (payables, accruals, derivatives, liabilities, advances, etc.)) and is measured as of the beginning of the fiscal year.


AWARD OPPORTUNITY EXAMPLESAWARD OPPORTUNITY EXAMPLES
The example below illustrates threshold, target, and maximum award opportunities for an employee with a pay basis of $70,000 and a target award potential of 5%. 
	
				
	Performance Targets
	Award Opportunity as % of Base Pay
	Award Opportunity Calculation
	Award Opportunity Amount

	Maximum
	10.0%
	  $70,000 x 10.0%
	$7,000

	Target
	  5.0%
	$70,000 x 5.0%
	$3,500

	Threshold
	  2.5%
	$70,000 x 2.5%
	$1,750






Compensation earned will be mathematically interpolated when performance results occur between the three Performance Levels. 















AWARD CALCULATION EXAMPLESARD CALCULATION EXAMPLES
The following is an example of an annual variable pay compensation calculation for an employee who is a Business Unit participant with a $70,000 pay basis and a target award potential of 5.0% ($3,500).


	
							
	Performance Measures
	Goal Weighting
	Target Award 
	X
	Performance to Target
	=
	Goal/ Award Result

	CHS ROIC
	10%
	   $350
	X
	   90%
	=
	$315

	Business Unit ROA
	60%
	$2,100
	X
	 100%
	=
	$2,100

	Individual Performance
	30%
	$1,050
	X
	 170%
	=
	$1,785

	Totals
	100%
	$3,500
	 
	 
	 
	$4,200






The following is an example of an annual variable pay compensation calculation for an employee who is a Corporate participant with a $70,000 pay basis and a target award potential of 5.0% ($3,500).


	
							
	Performance Measures
	Goal Weighting
	Target Award 
	X
	Performance to Target
	=
	Goal/ Award Result

	CHS ROIC
	60%
	$2,100
	X
	  90%
	=
	$1,890

	Enterprise ROA
	10%
	   $350
	X
	100%
	=
	   $350

	Individual Performance
	30%
	$1,050
	X
	170%
	=
	$1,785

	Totals
	100%
	$3,500
	 
	 
	 
	$4,025






In the following example, the CHS ROIC threshold goal required to trigger all components of the Plan is not met. The business unit achieves 110% of its ROA target and only the earned business unit award is paid. No compensation is earned for the CHS ROIC and individual performance components of the award.


The earned award calculation is for an employee who is a Business Unit participant with a $70,000 pay basis and a target award potential of 5.0% ($3,500). 


	
							
	Performance Measures
	Goal Weighting
	Target Award 
	X
	Performance to Target
	=
	Goal/ Award Result

	CHS ROIC
	10%
	   $350
	X
	   0%
	=
	$0

	Business Unit ROA
	60%
	$2,100
	X
	 110%
	=
	$2,310

	Individual Performance
	30%
	$1,050
	X
	 0%
	=
	$0

	Totals
	100%
	$3,500
	 
	 
	 
	$2,310