Document:

exv10w15

 

Exhibit 10.15

EMPLOYMENT AGREEMENT

THIS AGREEMENT is made effective as of September 1, 2003 by and between
John D. Johnson (hereafter “Johnson”) and CHS, Inc., a Minnesota cooperative
corporation (together with all affiliates, the “Company”).

	1.	 	Employment

The Company hereby agrees to and does hereby employ Johnson as its Chief
Executive Officer, and Johnson hereby agrees to accept employment with
the Company as Chief Executive Officer, for the period set forth in
Paragraph 2 below (the period of employment) upon the other terms and
conditions set forth in this Agreement.

	2.	 	Period of Employment; Termination of Agreement

The period of employment shall commence on the date of this Agreement
and, subject to the provisions of Paragraphs 5 and 6 below, shall
continue for a rolling three (3) year period, provided that Johnson’s
employment may be earlier terminated by either party subject to the
rights and obligations of the parties set forth herein.

	3.	 	Performance

Throughout the period of employment, Johnson agrees to devote his full
time and attention during normal business hours to the business of the
Company, except for earned vacations and except for illness or
incapacity.

	4.	 	Compensation

	(a)	 	For all services to be rendered by Johnson in any capacity
during the period of employment, Johnson shall be paid as annual
compensation a base salary of at least $850,000. The Board will
annually review Johnson’s annual compensation and determine what is
appropriate for a cost of living increase, merit increase, and/or
increase in responsibilities or duties.

	(b)	 	During the term of his employment hereunder, Johnson shall be
compensated pursuant to the plan in effect on September 1, 2003 with
annual variable pay pursuant to the plan in effect during the term
of this agreement. In addition, Johnson shall be eligible for long
term variable pay.

	(c)	 	Johnson shall be entitled to receive all benefits set forth
in the Special Supplemental Executive Retirement Plan, effective the        day
of        , 2003 (the “Special SERP”) or any successor plan.
Johnson shall further be entitled to any additional employee
benefits separately made available to him from time to time by the
Board in its discretion.

1

 

	(d)	 	The Company shall bear such ordinary and necessary business
expenses incurred by Johnson in performing his duties hereunder as
the Company determines from time to time, provided that Johnson
accounts promptly for such expenses to the Company in the manner
prescribed from time to time by the Company.

5. Termination with Severance Allowance

	(a)	 	Termination by the Company Not for Cause. In the event of
termination of the employment of Johnson by the Company during the
period of employment for any reason other than for cause, as
defined in paragraph 6(a), death or disability, the Company shall:

(i) pay Johnson a severance allowance in the amount of 2.99 times
the greater of

(A) his then-current base salary plus short-term and
long-term target bonus (“Target Bonus”), or

(B) the amount payable in base salary plus Target
Bonus for calendar year 2003;

(ii) provide a five-year enhancement to his retirement plan, except
that no such enhancement shall be provided if the termination
occurs after Johnson has attained the age of 60;

(iii) include the amount of the severance paid as salary or wages
for purposes of computing the pension cash balance and Special SERP
calculation;

(iv) bear the entire cost of Johnson’s COBRA family health
insurance coverage for one (1) year;

(v) continue his family health insurance thereafter up to age 65
(or any revised age for Medicare eligibility), upon Johnson’s
payment of the retiree premium rate, except for any period during
which Johnson is eligible for coverage, without any exclusions for
preexisting conditions, through another employee group plan; and

(vi) continue his existing executive perquisites for a period of
three (3) years.

Said severance allowance shall be in lieu of all other severance payable
to Johnson under Company severance policies.

	(b)	 	Termination by Johnson in the event of Consolidation. In the event of a
full consolidation of the Company’s business with the business of any
other entity, if Johnson is not offered the position of Chief Executive
Officer of the combined entity, this may be deemed at Johnson’s option to
be an event of termination without cause. In that event, the Company
shall:

(i) pay Johnson a severance allowance in the amount of 2.99 times
the greater of

2

 

(A) his then-current base salary plus Target Bonus, or

(B) the amount payable in base salary plus Target Bonus
for calendar year 2003;

(ii) provide a five-year enhancement to his retirement plan, except
that no such enhancement shall be provided if the termination
occurs after Johnson has attained the age of 60;

(iii) include the amount of the severance paid as salary or wages
for purposes of computing the pension cash balance and Special SERP
calculation;

(iv) bear the entire cost of Johnson’s COBRA family health
insurance coverage for one (1) year;

(v) continue his family health insurance thereafter up to age 65
(or any revised age for Medicare eligibility), upon Johnson’s
payment of the retiree premium rate, except for any period during
which Johnson is eligible for coverage, without any exclusions for
preexisting conditions, through another employee group plan; and

(vi) continue his existing executive perquisites for a period of
three (3) years.

Said severance allowance shall be in lieu of all other severance payable
to Johnson under Company severance policies.

(c) Additional Payments. In the event that Johnson becomes entitled to
payments under paragraph 5(a) or 5(b) of this Agreement, the Company
shall cause its independent auditors promptly to review, at the Company’s
sole expense, the applicability of Section 4999 of the Code to such
payments. If such auditors shall determine that any payment or
distribution of any type by the Company to Johnson or for his benefit,
whether paid or payable or distributed or distributable pursuant to the
terms of this Agreement or otherwise (the “Total Payments”), would be
subject to the excise tax imposed by Section 4999 of the Code, or any
interest or penalties with respect to such excise tax (such excise tax,
together with any such interest and penalties, are collectively referred
to as the “Excise Tax”), then Johnson shall be entitled to receive an
additional cash payment (a “Gross-Up Payment”) within 30 days of such
determination equal to an amount such that after payment by Johnson of
all taxes (including any interest or penalties imposed with respect to
such taxes), including any Excise Tax, imposed upon the Gross-Up Payment,
Johnson would retain an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Total Payments. For purposes of the
foregoing determination, Johnson’s tax rate shall be deemed to be the
highest statutory marginal state and Federal tax rate (on a combined
basis) (including Johnson’s share of F.I.C.A. and Medicare taxes) then in
effect. If no determination by the Company’s auditors is made prior to
the time a tax return reflecting the Total Payments is required to be
filed by Johnson, he will be entitled to receive a Gross-Up Payment
calculated on the basis of the Total Payments reported by Johnson in such
tax return, within 30 days of the filing of such tax return. In

3

 

all events, if any tax authority determines that a greater Excise Tax
should be imposed upon the Total Payments than is determined by the
Company’s independent auditors or reflected in Johnson’s tax return
pursuant to this Section 6, Johnson shall be entitled to receive the full
Gross-Up Payment calculated on the basis of the amount of Excise Tax
determined to be payable by such tax authority from the Company within 30
days of such determination.

(d) Request and Release. In order to obtain the severance allowance
provided for in this Agreement, Johnson must submit a request for
severance and must sign a complete release of all claims. The Company
shall have no obligation to pay any severance allowance unless and until
Johnson shall have submitted the request for severance and signed a full
and complete release of all claims, to be drafted by Legal Counsel for
the Company.

6. Termination without Severance Allowance

	(a)	 	Termination by the Company for Cause. The Company may
terminate Johnson’s employment for cause without incurring further
obligation. For the purpose of this Agreement, termination of
Johnson’s employment shall be deemed to have been for cause only:

	(i)	 	if termination of Johnson’s employment shall have
been the result of an act or acts of fraud, theft or
embezzlement on the part of Johnson which, if convicted, would
constitute a felony and which results or which is intended to
result directly or indirectly in gain or personal enrichment
of Johnson at the expense of the Company; or

	(ii)	 	if termination of Johnson’s employment results
from Johnson’s willful and material misconduct, including
willful and material failure to perform his duties, and
Johnson has been given written notice by the Board of
Directors with respect to such and Johnson does not cure
within a reasonable time; or

	(iii)	 	if there has been a breach by Johnson during the
period of employment of the provisions of Paragraph 3 above,
relating to the time to be devoted to the affairs of the
Company, and with respect to any alleged breach of Paragraph 3
hereof, Johnson shall have substantially failed to remedy such
alleged breach within thirty days from Johnson’s receipt of
notice from the Board of Directors.

	(b)	 	Nonrenewal of Agreement. The Company may elect not to renew
this Agreement, and thereby to terminate Johnson’s employment
hereunder without any severance obligations, upon at least three (3)
years’ prior written notice to Johnson.

	(c)	 	Termination by Johnson. Johnson shall have the right to
terminate his employment in his sole discretion, with or without
cause, by providing thirty (30)

4

 

days notice of his intent to resign. Johnson shall in that event
receive no further compensation or severance allowance.

	(d)	 	Death. In the event of Johnson’s death during the period of
employment, the legal representative of Johnson shall be entitled to
the base or fixed salary provided for in Paragraph 4(a) above for
the month in which death shall have occurred, at the rate being paid
at the time of death, and the period of employment shall be deemed
to have ended as of the close of business on the last day of the
month in which death shall have occurred but without prejudice to
any benefits, such as life insurance, otherwise due in respect of
Johnson’s death.

	(e)	 	Disability

	(i)	 	In the event of Johnson’s disability during the
period of employment, Johnson shall be entitled to an amount
equal to the base or fixed salary provided for in Paragraph
4(a) above, at the rate being paid at the time of the
commencement of disability, for the period of such disability
but not in excess of twelve (12) months from the beginning of
the period that establishes such disability, as described in
Paragraph 6(e)(iii) below.

	(ii)	 	The amount of any payments due under Paragraph
6(e)(i) shall be reduced by any payments to which Johnson may
be entitled for the same period because of disability under
any disability or pension plan of the Company or of any
division, subsidiary, or affiliate thereof, or as the result
of workers’ compensation or nonoccupational disability
payments received from any government entity.

	(iii)	 	The term “Disability” as used in this Agreement,
shall mean an illness or accident occurring during the period
of employment which prevents Johnson from performing the
essential functions of his job under this Agreement, with
reasonable accommodations (as defined by federal and Minnesota
disability laws), for a period of six consecutive months. The
period of employment shall be deemed to have ended as of the
close of business on the last day of such six-month period but
without prejudice to any payments due Johnson from any
disability policy or disability insurance.

7. Noncompetition

Johnson agrees that during the term of his employment and thereafter for
a period of two (2) years, he will not directly or indirectly engage in
or carry on a business that is in direct competition with any significant
business unit of the Company as conclusively determined by the Board of
Directors. Further, Johnson agrees that during this same period of time
he will not act as an agent, representative, consultant, officer,
director, independent contractor or employee of any entity or enterprise
that is in direct competition with any significant business unit of the
Company as conclusively determined by the Board of Directors.

5

 

8. Nondisclosure of Confidential Information

Johnson, except in connection with his employment hereunder, will not
disclose to any person or entity, either during the Period of Employment
or at any time thereafter, any confidential information acquired by
Johnson while employed by the Company. This protected confidential
information includes the Company’s trade secrets, technical information,
contracts, systems, procedures, business plans, internal reports, and
personnel files and information. Johnson agrees and acknowledges that all
of such information, in any form, is and will remain the sole and
exclusive property of the Company.

9. Successor in Interest

This Agreement and the rights and obligations hereunder shall be binding
upon and inure to the benefit of the parties hereto and their respective
legal representatives, and shall also bind and inure to the benefit of
any successor of the Company by merger or consolidation or any purchaser
or assignee of all or substantially all of its assets, but, except to any
such successor, purchaser, or assignee of the Company, neither this
Agreement nor any rights or benefits hereunder may be assigned by either
party hereto.

10. Construction

Whenever possible, each provision of this Agreement shall be interpreted
in such a manner as to be effective and valid under applicable law, but
if any provision of this Agreement shall be prohibited by or invalid
under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity without invalidating the
remainder of such provision or the remaining provisions of this
Agreement.

11. Governing Laws

This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Minnesota.

12. Notices

Any notice required or permitted to be given under this Agreement shall
be sufficient if in writing, sent by Certified Mail, Return Receipt
Requested:

	 	 	 	 	 
	 	 	
If to Johnson:
	 	John D. Johnson
	 	 	 	 	10 Echo Lake Blvd.
	 	 	 	 	Mahtomedi, MN 55115
	 	 	 	 	 
	 	 	
If to the Company:
	 	Chairman of the Board
	 	 	 	 	CHS, Inc.
	 	 	 	 	5500 CENEX Drive
	 	 	 	 	Inver Grove Heights, MN 55077

6

 

	 	 	 	 	 
	 	 	
With a copy to:
	 	General Counsel
	 	 	 	 	CHS, Inc.
	 	 	 	 	5500 CENEX Drive
	 	 	 	 	Inver Grove Heights, MN 55077

13. Entire Agreement

This Agreement shall constitute the entire agreement between the parties,
superseding the parties’ Agreement of September 1, 2000 and any prior
agreements. This Agreement may not be modified or amended, and no waiver
shall be effective, unless by written document signed by the Chairman of
the Board and Johnson.

IN WITNESS WHEREOF, the parties have executed this Agreement effective as
of the date set forth above.

	 	 	 
	 	 	
CHS, Inc.
	 	 	 
	 	 	
By:
	
	 	

	John D. Johnson	 	 
	 	 	 
	 	 	
Its:
	 	 	

7exv10w16

 

Exhibit 10.16

CHS, INC.

SPECIAL SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

ARTICLE I

INTRODUCTION

     Section 1.1. Adoption. CHS, Inc. (“CHS”) hereby adopts the CHS, Inc.
Special Supplemental Executive Retirement Plan (the “Plan”) effective this          day
of          , 2003, for the purpose of providing benefits for certain of
its employees who are part of a select group of management or highly
compensated employees.

     Section 1.2. Purpose. The purpose of this Plan is to provide specified
benefits to a select group of senior management and highly compensated
employees who contribute materially to the continued growth, development and
future business success of CHS. This Plan shall be unfunded for tax purposes
and for purpose of Title I of the Employee Retirement Income Security Act of
1974, as amended from time to time (ERISA).

ARTICLE II

DEFINITIONS AND INTERPRETATION

     Section 2.1. Definitions. When used in this Plan document, the following
terms have the meanings indicated unless a different meaning is plainly
required by the context.

     “Account” means an account established for a Participant under the terms
of the Plan.

     “Administrator” means the person or persons appointed by CHS (or its
Board) to administer the Plan. If CHS does not appoint an Administrator, the
Board will be the Administrator.

     “Annual Incentive Pay” means the annual incentive pay paid to a
Participant pursuant to the Annual Incentive Plan.

     “Annual Incentive Plan” means the Cenex Harvest States Cooperatives Annual
Incentive Plan dated                          ,
                          .

     “Base Pay” means the annual compensation, excluding bonuses, commissions,
overtime, relocation expenses, incentive payments, non-monetary awards, fringe
benefits, retainers, directors fees and other fees, severance allowances, pay
in lieu of vacations, insurance premiums paid by CHS, insurance benefits paid
to the Participant or his Beneficiary, CHS contributions to qualified or
nonqualified plans, automobile and other allowances paid to a Participant for
services rendered. Base Pay will be calculated prior to reduction for
compensation voluntarily deferred or contributed by the Participant for
qualified or nonqualified plans and will include amounts not otherwise

 

 

included in the Participant’s gross income under Code Sections 125, 401(k),
402(e)(3), 402(h), or 403(b).

     “Beneficiary” means the person, persons or entity designated in writing by
the Participant on forms provided by the Administrator to receive distribution
of certain death benefits under the Plan in the event of the Participant’s
death. A Participant may change the designated Beneficiary from time to time
by filing a new written designation with the Administrator, and such
designation shall be effective upon receipt by the Administrator. If a
Participant has not designated a Beneficiary, or if a designated Beneficiary is
not living or in existence at the time of a Participant’s death, any death
benefits payable under the Plan shall be paid to the Participant’s spouse, if
then living, and if the Participant’s spouse is not then living, to the
Participant’s estate.

     “Board” means the Board of Directors of CHS.

     “Change of Control” means the first to occur of either of the following
events:

     (a) Date that any one person, or group of persons acting as a group,
acquires ownership of shares of CHS that, together with shares already held by
the person or group, possesses more than fifty percent (50%) of the total
voting power of CHS shares. However, the acquisition of additional shares by
the same person or group is not considered a change of control.

     (b) CHS sells to an unrelated third party or parties (at one time or
within any two-year period) one third of the fair market value of its assets
and the assets of its wholly owned subsidiaries.

     “CHS” means CHS, Inc.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Committee” means the committee of CHS as described in Section 6.3 of the
Plan.

     “ERISA” means the Employee Retirement Income Security At of 1974, as
amended.

     “Participant” means a person who has satisfied the requirements of Section
2.1.

     “Plan” means the CHS, Inc. Special Supplemental Executive Retirement Plan
as it may be amended from time to time.

     “Plan Year” means the twelve (12) month period that begins on                          ,
and ends on                          .

 - 2 -

 

     “Total Disability” means total disability as defined by CHS long-term
disability plan.

     “Year of Service” means a Plan Year during which a Participant is
continuously employed by CHS.

     Section 2.2. Performance of Obligations. CHS agrees to perform its
obligations in accordance with the Plan.

     Section 2.3. Gender and Number. The singular form of any word will
include the plural and the masculine gender will include the feminine wherever
necessary for the proper interpretation of this Plan.

ARTICLE III

PARTICIPATION

     Section 3.1. Eligibility and Participation. The Chief Executive Officer
of CHS as of the effective date of this Plan will be eligible to participate in
this Plan on the date designated by the Board. The Board may from time to time
designate additional executives for inclusion in the Plan in its sole
discretion.

     Section 3.2. Status as Participant. A person who becomes a Participant
will remain a Participant in the Plan until all benefits payable to such person
under the Plan have been distributed.

ARTICLE IV

SUPPLEMENTAL RETIREMENT BENEFIT

     Section 4.1. Amount of Benefit. A supplemental retirement benefit will be
payable to a Participant under this Article IV. The amount of the
Participant’s benefit under the Plan shall be the sum of all amounts credited
to an Account established in the Participant’s name under this Article IV.

     Section 4.2. Account. CHS shall establish and maintain an Account for
each Participant to which amounts will be credited under this Section 4.2.
Each Participant’s Account shall be a separate bookkeeping account established
and maintained for the Participant representing separate unfunded and unsecured
general obligations of CHS with respect to the Participant and to which are
credited the amounts determined in accordance with this Section 4.2.

     (a) Base Benefit Amount. As of the end of each Plan Year for which a
Participant completes a Year of Service, an amount will be credited to the
Participant’s Account equal to the amount set forth in Schedule A, which shall
be attached to this Plan and incorporated herein, for the Plan Year for which
such Year of Service was completed. Any amounts not so credited to the
Participant’s Account for any Plan Year due to the Participant’s death, Total
Disability, termination of employment or a Change of Control will be forfeited.
After the amounts set forth in Schedule A have been so

 - 3 -

 

credited to the Participant’s Account or forfeited pursuant to this subsection
(a), no further amounts shall be credited to the Participant’s Account under
this subsection (a).

     (b) Performance-based Amount. As of the end of each Plan Year for which a
Participant completes a Year of Service, an amount will be credited to the
Participant’s Account equal to an amount not to exceed the amount set forth in
Schedule B, which shall be attached to this Plan and incorporated herein, for
the Plan Year for which such Year of Service was completed. If an amount shall
be credited to a Participant’s Account for any Plan Year pursuant to this
subsection (b), such amount will be determined by the Board or Committee,
provided the authority for making such determination has been so delegated to
the Committee, based on the Participant’s performance for the Plan Year for
which such determination is made pursuant to the performance standards under
the Annual Incentive Plan. By way of example, if a Participant receives sixty
percent (60%) of his or her maximum Annual Incentive Pay for a particular year
pursuant to the Annual Incentive Plan, an amount equal to sixty percent (60%)
of the amount set forth in Schedule B for the Plan Year for which such
determination is made will be credited to the Participant’s Account under this
Plan. Any amounts not so credited to the Participant’s Account for any Plan
Year due to the Participant’s death, Total Disability, termination of
employment or a Change of Control will be forfeited. After the appropriate
percentage of the amounts set forth in Schedule B have been so credited to the
Participant’s Account or forfeited pursuant to this subsection (b), no further
amounts shall be credited to the Participant’s Account under this subsection
(b).

     (c) Earnings. As of the end of each Plan Year, the amount credited to
each Participant’s Account will be adjusted by an amount equal to the product
of: (i) an interest rate of eight percent (8%), and (ii) the balance in the
Participant’s Account prior to the credit of any amounts for the immediately
following Plan Year pursuant to Section 4.2 (a) or (b) (i.e., the opening
account balance).

     Section 4.3. Vesting. For purposes of conceptually determining the
benefit that may be payable to a Participant under the Plan, the Participant’s
interest in the Plan shall at all times be fully vested.

ARTICLE V

DISTRIBUTIONS

     Section 5.1. Commencement of Benefits. Subject to Sections 5.3, 5.4 and
5.6 of this Plan, benefits under the Plan will be distributed beginning on the
first day of the sixth (6th) month of the Plan Year following the earliest to
occur of the Participant’s death, Total Disability, or termination of
employment.

     Section 5.2. Form of Distribution. CHS shall pay the Participant or his
Beneficiaries the vested portion of the Participant’s Account in one of the
following methods elected by the Participant or the Participant’s Beneficiary
in writing:

     (a) One lump sum payment; or

 - 4 -

 

     (b) A series of annual payments made over a period of years not to exceed
ten (10); or

     (c) One of the following annuity options:

     (1) Single life annuity (with level payments made for the
annuitant’s lifetime that cease upon the annuitant’s death).

     (2) Joint life and one-half survivor annuity (with full level
payments made as long as both the annuitant and joint annuitant are
alive, and upon the death of either the annuitant or joint annuitant,
fifty percent (50%) reduced, level payments to continue to the survivor
for as long he or she is alive).

Any benefits payable under the Plan in the form of an annuity shall be payable
from the assets of CHS. No annuity contract shall be required to be purchased
or distributed to or on behalf of the Participant pursuant to this subsection
(c).

     (d) A Participant must make an election in writing no later than six (6)
months prior to the beginning of the Plan Year in which a distribution is to be
made as to the form or commencement date of a benefit. If no such election is
made as to the form, distribution shall be made in the form of a single lump
sum payment unless the Board or Committee determines otherwise and so informs
the Participant.

     Section 5.3. Death Benefit. Notwithstanding any provision in this Plan to
the contrary, in the event of the death of a Participant prior to the payment
of the entire amount credited to the Participant’s Account, any unpaid amounts
shall be paid to the Participant’s Beneficiary as soon as practicable after the
Participant’s death.

     Section 5.4. Disability. Notwithstanding any provision in this Plan to
the contrary, in the event of the Total Disability of a Participant prior to
the payment of the entire amount credited to the Participant’s Account, any
unpaid amounts shall be paid to the Participant as soon as practicable after
the Participant’s Total Disability.

     Section 5.5. Distribution for Taxes. Anything herein to the contrary
notwithstanding, if, at any time, a court of competent jurisdiction or the
Internal Revenue Service determines that an amount credited to a Participant’s
Account is includable in the gross income of the Participant and subject to
tax, CHS may, in its sole discretion, permit a lump sum distribution of an
amount equal to the amount determined to be includable in the Participant’s
gross income.

     Section 5.6. Change of Control. Notwithstanding any provision in this
Plan to the contrary, in the event of a Change of Control of CHS, all
Participants shall be paid the entire amounts credited to their Accounts as of
that date in the form of single lump sum distributions on the January 1 of the
calendar year following the calendar year in

 - 5 -

 

which occurs such Change of Control. Amounts not credited to any Participant’s
Account as of the date on which the Change of Control occurs shall be
forfeited.

ARTICLE VI

ADMINISTRATION OF THE PLAN

     Section 6.1. Interpretation. The Plan will be administered by the
Administrator which will have the authority, duty and power to interpret and
construe the provisions of the Plan as it deems appropriate, to resolve all
factual and legal questions concerning the status and rights of a Participant
and a Beneficiary, to determine whether a Participant or Beneficiary is
entitled to any benefits that may be payable under the Plan. The Administrator
will have the duty and responsibility of maintaining records, making the
requisite calculations and dispersing the payments hereunder. The
Administrator’s interpretations, determinations, regulations and calculations
will be final and binding on all persons and parties concerned.

     Section 6.2. General Administration. The Administrator will be
responsible for the general operation and administration of the Plan and for
carrying out the provisions thereof. The Administrator will have the authority
to establish and revise rules, procedures and regulations relating to the Plan
and to make any other determinations which it believes necessary or advisable
for the administration of the Plan. The Administrator will be responsible for
the expenses incurred in the administration of the Plan. The Administrator
will be entitled to rely conclusively upon all tables, valuations,
certificates, opinions and reports furnished by any actuary, accountant,
controller, counsel or other person employed or engaged by the Administrator
with respect to the Plan.

     Section 6.3. Committee. A Committee consisting of one (1) or more members
appointed by the Board will act for CHS under the Plan, unless the Plan
specifically indicates that the Board or other persons are to act for CHS with
respect to a specified matter under the Plan. If such Board does not appoint
anyone to the Committee or if all members resign or otherwise cease to be
members of the Committee, such Board or any officer designated by the Board
will act for CHS until it makes any appointments under this section.

     Section 6.4. Records. The records of the Plan will be maintained on the
Plan Year.

ARTICLE VII

AMENDMENT OR TERMINATION

     Section 7.1. Amendment or Termination. CHS intends the Plan to be
permanent but, subject to Section 5.6 of this Plan, reserves the right to amend
or terminate the Plan at any time. Any such amendment or termination will be
made pursuant to a resolution of CHS’ Board and will be effective as of the
date provided in the resolution. An amendment will be stated in an instrument
in writing signed in the

 - 6 -

 

name of CHS by a person authorized by the Board and all parties interested
herein will be bound thereby.

     Section 7.2. Impact on Benefits. No amendment or termination of the Plan
will directly or indirectly reduce any benefit described in Article IV of the
Plan as of the effective date of such amendment or termination. Subject to
Section 5.6 of this Plan, a Participant’s Account under the Plan will not be
credited with additional amounts, other than amounts determined under
subsection (c) of Section 4.2, after the termination of the Plan and will be
determined under the appropriate provisions of the Plan as if the Participant
did not accumulate any additional service after the effective date of such
termination and did not have any increase in compensation after that date.
Upon the termination of the Plan, distribution of benefits payable under the
Plan will be made to each Participant or the Participant’s Beneficiary or
surviving spouse in accordance with Article V of the Plan.

ARTICLE VIII

GENERAL PROVISIONS

     Section 8.1. Responsibility for Benefits and Expenses. CHS will pay
benefits arising under the Plan and all costs, charges and expenses related
thereto. CHS may anticipate its obligations under this Plan by establishing a
trust or purchasing any insurance or other contract; provided, however, that
such “funding” vehicle will not:

     (a) change the status of this Plan as an unfunded plan both for tax
purposes and for purposes of Title I of ERISA; or

     (b) change the rights of a Participant or the Participant’s Beneficiary or
surviving spouse under Section 8.3 of the Plan.

     Section 8.2. Inalienability. The benefits payable hereunder or the right
to receive future benefits under the Plan may not be anticipated, alienated,
sold, transferred, assigned, pledged, encumbered, or subjected to any charge or
legal process; and no interest or right to receive a benefit may be taken,
either voluntarily or involuntarily, for the satisfaction of the debts of, or
other obligations or claims against, such person or entity, including claims
for alimony, support, separate maintenance and claims in bankruptcy
proceedings.

     Section 8.3. Unsecured Claim. The right of a Participant or the
Participant’s Beneficiary or surviving spouse to receive a distribution
hereunder will be an unsecured claim against the general assets of CHS, and
neither a Participant nor his or her Beneficiary or surviving spouse will have
any rights in or against any amount credited to any Account under the Plan or
any other assets of CHS. The Plan will at all times be considered entirely
unfunded both for tax purposes and for purposes of Title I of ERISA.

     Section 8.4. Plan Administered According to Its Terms. No Participant,
Beneficiary or surviving spouse will have any right to a benefit under the Plan
except in accordance with the terms of the Plan. Establishment of the Plan
will not be construed

 - 7 -

 

to give any Participant the right to be retained in the service of CHS. The
sole rights of a Participant or his or her Beneficiary or surviving spouse
under the Plan will be to have the Plan administered according to its terms,
and to receive whatever benefits he or she may be entitled to hereunder.

     Section 8.5. Impact of Corporate Change. The Plan will not be
automatically terminated by a transfer or sale of assets of CHS or by the
merger or consolidation of CHS into or with any other corporate or other
entity, but the Plan will be continued after such sale, merger or consolidation
only if and to the extent that the transferee, purchaser or successor entity
agrees to continue the Plan. In the event the Plan is not continued by the
transferee, purchaser or successor entity, then the Plan will terminate subject
to the provisions of Article VII and Section 5.6 of the Plan.

     Section 8.6. Governing Law. To the extent not pre-empted by the laws of
the United States of America, the laws of the State of Minnesota shall be the
controlling state law in all matters relating to this Plan.

     Section 8.7. Severability. If any provisions of this Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of this Plan, but this Plan shall be construed and
enforced as if the illegal and invalid provisions never had been included
herein.

     Section 8.8. Taxes. CHS has the right to deduct from all payments made
under the Plan to a Participant, the Participant’s Beneficiary or surviving
spouse any federal, state, local or other taxes required by law to be withheld
with respect to such payments.

     Executed this          day
of                          , 2003.

	 	 	 
	 	 	
CHS, Inc.
	 	 	 
	 	 	
By:
	 	 	

	 	 	 
	 	 	
Title:
	 	 	

 - 8 -

 

SCHEDULE A

Annual Special SERP Contributions

	 	 	 	 	 	 	 	 	 
	Year	 	Age	 	 	SERP Contribution	 
	
	 	
	 	 	
	 
	2002
	 	 	54	 	 	 	 	 
	2003
	 	 	55	 	 	$	263,663	 
	2004
	 	 	56	 	 	$	263,663	 
	2005
	 	 	57	 	 	$	263,663	 
	2006
	 	 	58	 	 	$	263,663	 
	2007
	 	 	59	 	 	$	263,663	 
	2008
	 	 	60	 	 	$	306,163	 
	2009
	 	 	61	 	 	$	350,428	 
	2010
	 	 	62	 	 	$	395,481	 

 - 9 -

 

SCHEDULE B

Annual Maximum Performance-Based

Special SERP Contributions

	 	 	 	 	 	 	 	 	 
	Year	 	Age	 	 	SERP Contribution	 
	
	 	
	 	 	
	 
	2002
	 	 	54	 	 	 	 	 
	2003
	 	 	55	 	 	$	83,272	 
	2004
	 	 	56	 	 	$	83,272	 
	2005
	 	 	57	 	 	$	83,272	 
	2006
	 	 	58	 	 	$	83,272	 
	2007
	 	 	59	 	 	$	83,272	 
	2008
	 	 	60	 	 	$	83,272	 
	2009
	 	 	61	 	 	$	83,272	 
	2010
	 	 	62	 	 	$	83,272	 

 - 10 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}]]