Document:

Document

Drive Shack Inc.
218 W. 18th St., 3rd Fl. New York, NY 10011

September 28, 2020

Dear Larry:

This letter will amend the terms of your current Offer Letter, dated as of December 12, 2017 (your “Offer Letter”). Except as otherwise set forth in this letter, the terms and conditions of your Offer Letter remain in full force and effect.

Commencing as of the date of this letter, your title will be Chief Accounting Officer and Treasurer, reporting to the Company’s Chief Financial Officer.

In consideration of your 2019 and 2020 employment, your annual bonus amount of $164,000.00 for the fiscal year ended 2019, as described in the Company’s Annual Report on Form 10-K, will be paid with a bonus payment date no later than the date on which the Company pays bonuses in respect of such year to other members of the Drive Shack corporate team or, if earlier, any bonus payment date in respect of any year subsequent.  In addition, your bonus amount of $285,000.00 for the fiscal year ended 2020 will be paid no later than the date on which the Company pays bonuses in respect of such year to other members of the Drive Shack corporate team or, if earlier, any bonus payment date in respect of any year subsequent. If you do not remain on the Company’s payroll on the applicable date of payment for either bonus, you are not eligible to receive that bonus, except as set forth in the following sentence. If the Company terminates your employment without Cause (except as a result of your death or Disability) and you execute a separation agreement and general release of claims in a form generally accepted for executives (the “Release”) then you will be entitled to receive (A) the bonus amounts set forth above, to the extent not yet paid, on the applicable date set forth above, (B) an amount in cash equal to the sum of 25% of your annual base salary, payable in equal installments in accordance with the Company’s normal payroll practices during the three-month year period following the date of termination and (C) continued participation in the Company’s benefit plans at active employee rates for three months following the date of termination.

Thank you for your commendable work and ongoing commitment to the business.

Drive Shack Inc.
By:

I affirm my understanding of, and agreement to, the terms and conditions set forth above, and hereby accept this amendment to the Offer Letter:

/s/ Lawrence A. Goodfield, Jr. 
Legal Name (Printed):   Lawrence A. Goodfield, Jr.             Date: 9/28/2020Document

EX 10.1A

AMENDMENT NO. 1 to EMPLOYMENT AGREEMENT

This AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (this “Amendment”) is made and entered into as of November 5, 2020 (the “Effective Date”) by and between Jay D. Debertin (the “Executive”) and CHS Inc. (the “Company”) and amends that certain Employment Agreement effective May 22, 2017 by and between Executive and the Company.  All terms capitalized herein shall have the same meanings ascribed to them in the Agreement.  In the event of any conflict between the terms of the Agreement and the terms of this Amendment, the terms of this Amendment shall prevail.

WHEREAS, Executive and Company entered into the Agreement;

WHEREAS, Executive and Company desire to amend the Agreement to extend the term of the Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties amend the Agreement as follows:

•Section 1 of the Agreement (“Term”) is amended by deleting the date “August 31, 2020” and inserting the date “August 31, 2023”.

Except as herein above modified, the terms and conditions of the Agreement shall remain in full force and effect.

This Amendment No. 1 may be executed in counterparts and signatures transmitted electronically shall be deemed to be original signatures.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and Executive has executed this Agreement as of the day and year first above written.

															
	CHS INC. 		JAY D. DEBERTIN	
					
	By:				
					
	Name: 	Daniel Schurr			
	Title:	Chair of the Board of DirectorsDocument

CHS Annual Variable Pay Plan                 Exhibit 10.3
Master Plan Document

			
	Purpose

The purpose of the CHS Annual Variable Pay Plan (the “Plan”) is to provide a direct financial incentive for eligible employees (each a “Participant”) who contribute to the achievement of company and business unit financial performance goals, as well as individual performance goals that are aligned with organizational priorities and CHS Leadership Expectations. The Plan is intended to:
•Drive strong business performance and reward participants for achieving goals relevant to the business
•Emphasize shared ownership of enterprise and business unit initiatives, and reward for the achievement of collective results through collaborative work efforts
•Create a line of sight for participants to see how their actions contribute to the achievement of company goals
•Reward goal achievement that is competitive with compensation in the external market and aligns with organizational and market best practices

			
	Performance Period

Each Performance Period for the Plan (“Performance Period”) will be a CHS fiscal year, currently September 1 through August 31. A new Performance Period begins each fiscal year.

			
	Eligibility

•Employees must have a start date in an eligible non-union position and have a status of a full-time or part-time regularly scheduled employee on or before June 1 of the Performance Period.
•Employees must be employed in an eligible non-union position, have actively worked a minimum of 30 days in the Performance Period, and have a status of a full-time or part-time regularly scheduled employee at the end of the Performance Period (August 31), or have had an eligible status change during the Performance Period (reference Award Proration for more information).
•The following table provides an overview of basic Plan eligibility. Refer to the additional criteria in this section for details.

						
	Eligible
	Ineligible

	Non-Union
	Union

	Full-time
	Layoff

	Part-time Regularly Scheduled
	Temp/Seasonal

	Start date on/before June 1
	Start date after June 1

	Active in eligible status at the end of the Performance Period
	Separated or other ineligible status at the end of the Performance Period

	Worked a minimum of 30 days during the Performance Period
	Worked less than 30 days during the Performance Period

		Eligible for certain other forms of variable compensation

•An employee’s eligibility may change during the Performance Period due to a status change. Eligible status changes will result in the employee becoming eligible or maintaining eligibility as a Participant, however actual compensation earned under the Plan will be prorated (reference Award Proration for more information).
•An employee who has an ineligible status change during the Performance Period and/or is in an ineligible status at the end of the Performance Period (August 31) is not eligible to participate in the Plan and will not be a Participant for purposes of the Plan (reference the table above for more information).
2020 CHS Annual Variable Pay Master Plan Document  1

CHS Annual Variable Pay Plan                 Exhibit 10.3
Master Plan Document

•Employees who are eligible to earn variable compensation through any other bonus, commission or incentive plan are not eligible to participate in the Plan and will not be a Participant for purposes of this Plan, unless approved by the Plan Administrators.
•Employees may forfeit eligibility to participate in the Plan for any Performance Period, or have their actual compensation earned under the Plan modified at the sole discretion of the Plan Administrators, if it is determined that the Employee has failed to meet job performance criteria and standards, which includes but is not limited to documented performance issues, or that they have committed acts of misconduct, dishonesty or violation of CHS policies and procedures. Forfeiture of eligibility or changes in actual compensation earned under the Plan must be approved by the Employee’s Human Resources Director and Compensation Director.
•Employees that are not eligible for the Plan after consideration of the eligibility rules include: Energy Certified Energy Specialists; Energy Transportation and Distribution Drivers; Energy Zip Trip store employees below the C-Store Manager level; Production Incentive eligible employees; Temco Terminal employees; Ag Associates; Country Operations employees below the Vice President level without a department name beginning with CO. Eligibility can be changed at the sole discretion of the Plan Administrators. 
•This Plan document applies to eligible U.S. and Canadian Participants. Plan documents are customized by region for eligible International employees.

			
	Performance Goals

The Plan has predetermined financial performance goals as defined in the Plan Appendix, including Return on Invested Capital (ROIC) and Return on Assets (ROA), as well as Individual Performance Goals (“Performance Goals”). The ROIC and ROA financial performance goals for each Performance Period are measured over the entire Performance Period. 
•The President and Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) establish, and the CHS Board of Directors approves, the ROIC Performance Goals at the corporate level for each Performance Period pursuant to the Plan. 
•The CEO and CFO establish, in collaboration with senior finance and business unit leaders, the ROA Performance Goals at the business unit level for each Performance Period pursuant to the Plan.
•Individual Performance Goals are determined by the Participant and the Participants’ Manager at the beginning of the Performance Period.
The Plan payout range is calculated as a percent of each target Performance Goal, or the expected level of performance, based on actual results for each Performance Goal for the Performance Period. The payout range is calculated independently for each Performance Goal and mathematically interpolated when results are attained between the Performance Goal levels. The following table illustrates the Performance Goal levels and associated payout range. 

									
	Performance Goal Level
	Level Definition
	Payout Range

	Maximum
	Highest level of Performance
	200%

	Target
	Expected level of Performance
	100%

	Threshold
	Lowest level of Performance
	50%

			
	Performance Goal Weightings

The Performance Goal weightings indicate the relative value of each Performance Goal in the award calculation. 
Performance Goals are weighted based on whether Participants are in a Corporate Function or a Business Unit Participant group. The following table illustrates Performance Goal weightings by Participant group.

2020 CHS Annual Variable Pay Master Plan Document  2

CHS Annual Variable Pay Plan                 Exhibit 10.3
Master Plan Document

															
	Participant Group
	Group Definition
	Performance Goal Weighting
		
			ROIC
	ROA
	Individual

	Corporate Function
	Enterprise Support
	70%
		30%

	Business Unit
	Defined Market Segment
	35%
	35%
	30%

			
	Performance Goal Trigger

To earn actual compensation under the Plan for any Performance Goal, one of two Performance Goal levels (“Trigger”) must be met.
The Trigger defines the level of required performance to trigger a payout. The Trigger is based on whether Participants are in a Corporate Function or a Business Unit Participant group. 
•For Corporate Function Participant’s, the threshold ROIC Trigger must be met for actual compensation to be earned. 
◦If the threshold ROIC Trigger is not met, no actual compensation is earned for any Performance Goal.
•For Business Unit Participant’s, the threshold ROIC or target ROA Trigger must be met for actual compensation to be earned.
◦If the threshold ROIC Trigger is not met, and the target ROA Trigger is met, actual compensation may still be earned for the ROA Performance Goal only. 
◦If both the threshold ROIC and target ROA Triggers are not met, no actual compensation is earned for any Performance Goal.

The following table illustrates how actual compensation is earned for each Performance Goal if the Trigger is met. 

																		
	Participant Group
	Trigger
		Performance Goal Weighting Compensation Earned
		
		Performance Goal
	Performance Goal Level Required
	ROIC
	ROA
	Individual

	Corporate Function
	ROIC
	Threshold
	Yes
	Yes
	Yes

	Business Unit
	ROIC
	Threshold
	Yes
	Yes
	Yes

	IF THRESHOLD ROIC TRIGGER IS NOT MET
					
	Corporate Function
	ROIC
	Threshold
	No
	No
	No

	Business Unit
	ROIC
	Threshold
	No
	Varies Based on Business Unit ROA Results (see below)
	No

	Business Unit
	ROA
	Target
	No
	Yes
	No

						
	Award Opportunity	

Participant’s target Award Opportunity (“Award Opportunity”) pursuant to the Plan for any Performance Period varies by grade level and/or position and is one factor used in the calculation of actual compensation earned under the Plan.

						
	Pay Basis	

Participant’s Pay Basis is determined based on whether Participants are salaried (exempt) or hourly (non-exempt) and is another factor used in the calculation of actual compensation earned under the Plan. Pay Basis for any Performance Period is determined as follows:
2020 CHS Annual Variable Pay Master Plan Document  3

CHS Annual Variable Pay Plan                 Exhibit 10.3
Master Plan Document

•Salaried (exempt) Participants: Base pay, at the end of the Performance Period (August 31), prorated by the number of days worked.
•Hourly (non-exempt) Participants: Actual earnings in an eligible position, including base pay and overtime, during the Performance Period (September 1 through August 31). 

						
	Award Proration	

Participant’s actual compensation earned under the Plan will be prorated based on the following changes:
•Financial performance goal changes that occur on or before June 1 of the Performance Period;
•Performance goal weighting changes that occur on or before June 1 of the Performance Period;
•Eligible status changes that occur during the Performance Period.
•Actual compensation earned under the Plan may also be prorated based on changes in grade level and/or or position that occur during the Performance Period, at the sole discretion of the Participant’s Manager and Human Resources Director.
•The following table outlines status changes and how actual compensation earned under the Plan will be prorated when a change in status occurs during the Performance Period. Refer to the Eligibility for details.

						
	Status Change*
	Proration Rule – Days Included

	Deceased
	Days worked in an eligible status

	Full-Time
	Days worked in an eligible status

	Layoff
	Days worked in an eligible status; unless status is Layoff at the end of the Performance Period

	Leave of Absence
	Days worked in an eligible status; and First 90 days

	Long-Term Disability
	Days worked in an eligible status

	Military Leave
	Days worked in an eligible status; and First 90 days

	Part-Time Regularly Scheduled
	Days worked in an eligible status

	Position Elimination (including Divestiture)
	Days worked in an eligible status

	Retirement (Refer to CHS Retirement Plan rules)
	Days worked in an eligible status

	Separation
	Days worked in an eligible status; unless status is Separation at the end of the Performance Period

	Separation and Return to Eligible Status
	Days worked in an eligible status before and after separation if employee returns within 90 days

	Short-Term Disability (including FMLA)
	Days worked in an eligible status; and First 90 days

	Temp/Seasonal to Eligible Status
	Days worked in an eligible status; unless status is Temp/Seasonal at the end of the Performance Period

	Union to Eligible Status
	Days worked in an eligible status, unless status is Union at the end of the Performance Period

	Workers Compensation
	Days worked in an eligible status; and First 90 days

*Not all eligible status changes are included in the table above. 

						
	Award Payment	

Actual compensation earned under the Plan, including compensation for Participants who are no longer employed by the company after the end of the Performance Period and/or due to an eligible status change during the Performance Period, is determined, approved and issued as soon as administratively feasible following the Performance Period. No compensation shall be deemed earned under the Plan until after Performance Period financial results are approved by the CHS Board of Directors. 
Actual compensation earned under the Plan can be modified or terminated without Participant consent for any reason up until the CHS Board of Directors approves the Performance Period financial results. Once 
2020 CHS Annual Variable Pay Master Plan Document  4

CHS Annual Variable Pay Plan                 Exhibit 10.3
Master Plan Document

approved, actual compensation earned cannot be modified or terminated, except as is expressly provided in the Plan. 
In all cases, actual compensation earned under the Plan shall be paid no later than November 30 following the Performance Period for which it was earned. Actual compensation earned under the Plan is paid through the same process as the Participant’s paycheck. All payments are subject to appropriate withholdings.

						
	Administration	

The CFO and Chief Human Resource Officer (CHRO) administer the Plan (each a Plan Administrator). The Plan Administrators, along with the CEO, are authorized to make all decisions as required in the administration of the Plan and to exercise their discretion to define, interpret, construe and apply Plan provisions, approve, administer, withdraw, and make any exceptions to the terms of the Plan. Any adjustments to the Plan based on extraordinary business conditions requires CHS Board of Directors and CFO approval at the corporate level, and CEO and CFO approval at the business unit level.

						
	General Provisions	

CHS reserves the right to change or cancel the Plan at any time. This Plan document does not intend to create an employment contract or provide a guarantee of continued employment. There is no vested right to any payment prior to the award determination and the CHS Annual Variable Pay Plan does not give rise to any vested right to future payments.
Non-Recurring Events: Non-recurring business events, which have a substantial impact on CHS financial results during the Plan Period, may be excluded from the calculations for determining awards. Such events could include but are not limited to, major gains or losses from acquisitions (including planned short-term losses), divestitures, lawsuits, significant business write-offs, casualty losses or sale of assets.
Recovery: Actual compensation earned under the Plan shall be subject to recovery or the penalties pursuant to any applicable company policy, law, rule or regulation or applicable stock exchange rule, including, without limitation, Section 304 of the Sarbanes-Oxley Act of 2002, Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and any applicable stock exchange listing rule adopted Pursuant thereto.

						
	Additional Information	

Performance Goals and Plan examples are included in the Plan Appendix. Contact your Manager or Human Resources Business Partner for more information.
2020 CHS Annual Variable Pay Master Plan Document  5

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