Exhibit








Exhibit 10.4A
CHS ANNUAL VARIABLE PAY PLAN 
APPENDIX A, PLAN DETAILS - FISCAL 2017        
 




COMPANY RETURN ON ADJUSTED EQUITY (ROAE) and RETURN ON ASSET (ROA) GOALS


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

	Maximum
	11.5%
	11.5%
	Maximum Performance Goal
	200%

	Target
	9.5%
	9.5%
	Targeted Performance Goal
	100%

	Threshold
	7.5%
	7.5%
	Minimum Performance Goal
	50%






RETURN ON ADJUSTED EQUITY (ROAE) EXPLANATION
ROAE is a measurement of company profitability and is calculated by dividing adjusted net income (earnings) by adjusted equity. To determine the equity and earnings adjustments, CHS subtracts preferred stock dividends from earnings, and reduces equity by the amount of preferred stock on the balance sheet.


	
	
	ROAE

	Adjusted Fiscal Year Earnings

	Adjusted Beginning Year Equity








RETURN ON ASSETS (ROA) EXPLANATION
ROA is a measurement of how well a company uses its assets to generate earnings and is calculated by dividing operating income by total assets minus working capital liabilities. Details on the ROA calculation, goal determination and 2017 goals can be answered by the finance contact for your group.
	
	
	ROA

	Operating Income

	Total Assets - Working Capital Liabilities








AWARD 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 EXAMPLES
The following is an example of an annual variable pay compensation calculation for an employee who is a Business Unit Contributor 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 ROAE
	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 in a Corporate Contributor role 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 ROAE
	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 ROAE threshold goal required to trigger all components of the Plan is not met. However, the business unit exceeds its target goal. The annual variable pay compensation calculation is for an employee who is in a Business Unit Contributor role with a $70,000 pay basis and a target award potential of 5.0% ($3,500). 


The business unit achieves 110% of its ROA target and only the earned business unit award is paid. Zero compensation is earned for the CHS ROAE and Individual Performance components of the award.


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

	CHS ROAE
	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