Document:

Exhibit (10)A

 

 

 

TARGET CORPORATION

 

POST RETIREMENT EXECUTIVE SURVIVOR BENEFIT PLAN

 

 

TARGET CORPORATION

POST RETIREMENT

EXECUTIVE SURVIVOR BENEFIT PLAN

 

 

ARTICLE I

 

DEFINITIONS

 

When used in this Plan
document, the following terms have the meanings indicated unless a different
meaning is plainly required by the context. 
All other terms in this Plan shall have the same meaning as those used
in the Qualified Plans unless the context clearly indicates the contrary.

 

Section 1.1             “Code” means the Internal Revenue Code of
1986, as amended.

 

Section 1.2             “Company” means Target Corporation and any
of its subsidiaries or affiliated business entities.

 

Section 1.3             “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended.

 

Section 1.4             “Participant” means any former employee of
the Company described in Section 2.3 of this Plan.

 

Section 1.5             “Retirement” means Normal or Early
Retirement as defined in the Qualified Plan.

 

Section 1.6             “Spouse” means the individual, if any, to
whom the Participant is legally married under the Defense of Marriage Act,
(P.L. 104-109, as amended and codified from time to time) at the time of the
Participant’s retirement.

 

Section 1.7             “Qualified Plan” means the Target
Corporation Employees’ Pension Plan (the “TGT Plan”) as in effect from time to
time, The Retirement Plan of The J. L. Hudson Company (the “Hudson Plan”) as in
effect from time to time, the Mervyn’s Pension Plan (the “Mervyn’s Plan”) as in
effect from time to time.

 

Section 1.8             “Plan” means the Target Corporation Post
Retirement Executive Survivor Benefit Plan, as of its original effective date,
including any subsequent amendments thereto.

 

Section 1.9             “Beneficiary” means the person or persons
designated in accordance with Article VI.

 

 

 

ARTICLE II

 

GENERAL 

 

Section 2.1             Name of Plan.  The name of the Plan set forth herein is the
Target Corporation Post Retirement Executive Survivor Benefit Plan (the “Plan”).

 

Section 2.2             Purpose.  The Plan has been established by the Company
to provide a death benefit to certain beneficiaries of certain Participants who
are receiving retirement benefits from a Qualified Plan.  The Plan is intended to be a “top hat welfare
benefit plan” within the meaning of Department of Labor Reg. Sec. 2520.104-24
and Sections 201(2), 301(a) and 401(a)(1) of ERISA and shall be interpreted and
administered accordingly.

 

Section 2.3             Participation.  An Employee of the Company will become a
Participant in this Plan upon satisfying the following conditions:

 

(a)                                  he
or she is a Participant in a Qualified Plan and has either an Early Retirement
or Normal Retirement as defined under such Qualified Plan; and

 

(b)                                 is designated at the time of his or her retirement by the
chief human resources officer of the Company as a member of the Senior
Management Group (‘SMG’) or the Executive Management Group (‘EMG’), or of an
equivalent rank in any revised classification system.

 

Section 2.4             Transfers.  Each Employee who is classified as a member
of the Target Corporation Corporate Operating Committee and has a fully vested
benefit under the Company’s qualified defined benefit pension plan on April 30,
2002 will not become a Participant in this Plan but rather will have the
actuarial lump sum present value of the survivor pension benefit under this
Plan credited to a deferral account in his or her name under the Target
Corporation Executive Deferred Compensation Plan (“SMG EDCP”), as provided
under Article VII.  Upon transfer of his
or her survivor benefit to the SMG EDCP, such Employee shall cease to be
eligible to be a Participant under this Plan. 
Adjustments to and payment of such transferred benefit is determined
under the SMG EDCP.

 

 

ARTICLE III

 

SURVIVOR BENEFITS

 

Section 3.1             Spousal Benefit.  If a Participant is married when he/she
retires, then, upon the death of the Participant, the surviving Spouse will
receive a benefit equal to a joint and 100% survivor pension annuity as
calculated under the Qualified Plan:  (i)
as of the Participant’s annuity starting date, (ii) without regard to maximum
compensation limitations in Qualified Plans required by Section 401(a)(17) of
the Code, (iii) as if Section 4.7 of the Qualified Plan included in Certified
Earnings for a Plan Year compensation that would have been paid in that year in
the absence of an election to defer payment of the compensation to a later date
pursuant to the provisions of a deferred compensation plan, and (iv) without
regard to the alternative benefit formula of Sections 4.6(a)(4) and 4.6(b)(3)
of the Qualified Plan.  This benefit
shall be paid to the surviving Spouse beginning at Participant’s death and
continuing until the surviving Spouse dies. 
If the Spouse predeceases the Participant no benefit will be paid to the
estate.  In the event the Participant
dies prior to commencing his/her benefit under the Qualified Plan for purpose
of this Plan, the benefit shall be calculated as if Participant had begun
his/her annuity on the day before the date of death.

 

Section 3.2             Non-Spousal Beneficiary.  If Participant is single at the time of
retirement, then, as soon as administratively feasible after death, the
Participant’s Beneficiary, or if no Beneficiary has been designated, the
Participant’s estate will receive a lump sum payment equal to the present value
of a joint and 100% survivor annuity benefit, assuming the following:  (i) the benefit was determined as of the
Participant’s annuity starting date; (ii) Participant’s contingent annuitant
was the same age but opposite gender as the Participant; (iii) without regard
to maximum compensation limits in Qualified Plan required by Section 401(a)(17)
of the Code;  (iv) as if Section 4.7 of
the Qualified Plan included in Certified Earnings for a Plan Year compensation
that would have been paid in that year in the absence of an election to defer
payment of the compensation to a later date pursuant to the provisions of a
deferred compensation plans, and (v) without regard to the alternative benefit
formula of Sections 4.6(a)(4) and 4.6(b)(3) of the Qualified Plan.  In the event the Participant dies prior to
commencing his/her benefit under the Qualified Plan for purpose of this Plan,
the benefit shall be calculated as if Participant had begun his/her annuity on
the day before the date of death.

 

 

Section 3.3             Termination of Benefits and Plan.  Effective as of October 28, 2005:

 

(i)                                     The
ESBP is terminated and will cease to provide survivor benefits to any
Participant or employee of the Company who dies on or after October 28, 2005.

 

(ii)                                  The
ESBP is terminated and will cease to provide a benefit transfer for any Participant
or employee of the Company who might become eligible to receive a benefit
transfer (including annual adjustment transfers) as provided under Section 2.4
and Article VII.

 

(iii)                               Any
participant who received a benefit transfer described in Section 2.4 and
Article VII (including annual adjustment transfers) shall have his or her
rights to such transfers determined solely under the provisions of the SMG
EDCP.

 

(iv)                              The
ESBP will continue to provide survivor benefits to:

 

(a)                                  a
surviving Spouse or Beneficiary who was entitled to receive a benefit under the
ESBP on account of a Participant’s death prior to October 28, 2005; or

 

(b)                                 the surviving Spouse or Beneficiary of a Participant who
retired on or before October 28, 2005.

 

Such benefits shall be provided
in accordance with the terms of the ESBP in effect on the earlier of the date
of the Participant’s death or October 28, 2005. 
Following the payment of benefits required under this Paragraph iv, the ESBP will terminate in its entirety.

 

ARTICLE IV

 

MISCELLANEOUS

 

Section 4.1             Unfunded.  Benefits payable under this Plan will not be
funded but rather will be made out of the general assets of the Company.  No person entitled to a benefit under this
Plan shall, by virtue of this Plan, have any interest in any specific asset or
assets of the Company.  Such persons have
only an unsecured contract right to receive payments in accordance with this
Plan.

 

 

Section 4.2             Benefits May Not Be Assigned or
Alienated.  Except as required by
law, 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; no interest
or right to received a benefit may be taken, either voluntarily or
involuntarily, for the satisfaction or 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 4.3             Not Employment Agreement.  The sole rights of a Participant under this
Plan shall be to have this Plan administered according to its provisions, to
receive whatever benefits he or she may be entitled to hereunder, and nothing
in this Plan shall be interpreted as a guarantee that any funds in a Trust or
assets of the Company will be sufficient to pay any such benefit.  This Plan is not an employment agreement and
does not assure the continued employment of any employee or Participant for any
time or period.

 

Section 4.4             Administration.  The Company has assigned to the Plan
Administrative Committee — Non-Qualified Plans for Target Corporation (“Non-Qualified
PAC”) the responsibility to control and manage the operations and day to day
administration of this Plan and make all decisions and determinations incident
thereto.  The Plan shall be administered
by the Company, which shall have the authority to interpret and construe the
terms of the Plan as it deems appropriate including the authority to determine
eligibility for benefits under the Plan and to determine the appropriate
discount rate for determining the value of the benefit paid in Article
III.  The Company shall have the duty and
responsibility of maintaining records, making the requisite calculations and
disbursing the payments hereunder.  The
Company’s interpretations, determinations, regulations and calculations shall
be final and binding on all interested persons and parties.

 

Section 4.5             Claims Procedure.  The Non-Qualified PAC shall establish a
claims procedure consistent with ERISA requirements.

 

Section 4.6             Withholding.  The Company retains the right to withhold
such portion of any benefit payable under the Plan, for any and all income,
employment, excise and other tax as the Company may, it its sole discretion,
deem necessary or appropriate.

 

Section 4.7             Waiver of Notice.  Any notice required hereunder may be waived
by the person entitled thereto.

 

Section 4.8             Agent for Legal Process.  The Company shall be the agent for service of

 

 

legal process
with respect to any matter concerning the Plan, unless and until the Company
designates some other person as such agent.

 

Section 4.9             Indemnification.  In addition to any other applicable
provisions for indemnification, the Participating Employers jointly and
severally agree to indemnify and hold harmless, to the extent permitted by law,
each director, officer and Employee of the Participating Employers against any
and all liabilities, losses, costs or expenses (including legal fees) of
whatsoever kind and nature which may be imposed on, incurred by or asserted
against such person at any time by reason of such person’s services as a
fiduciary in connection with the Plan, but only if such person did not act
dishonestly, or in bad faith, or in willful violation of the law or regulations
under which such liability, loss, cost or expense arises.

 

Section 4.10           Correction of Errors.  It is recognized that in the operation and
administration of the Plan certain mathematical and accounting errors may be
made or mistakes may arise by reason of factual errors in information supplied
to the Company or Trustee.  The Company
shall have power to cause such equitable adjustments to be made to correct for
such errors as the Company, in its discretion, considers appropriate.  Such adjustments shall be final and binding
on all persons.

 

ARTICLE V

 

AMENDMENT, TERMINATION AND APPLICABLE LAW

 

Section 5.1             Amendment and Termination.  The Company, by action of its Board of
Directors or one of its officers, or by action of a person or committee so authorized
by resolution of the Board of Directors, may amend or terminate the Plan at any
time and from time to time.  The
Non-Qualified PAC is authorized to make any other amendments to this Plan
deemed necessary or desirable by the Committee for the operation and
administration of this Plan provided such amendment does not have a material
financial impact on the Company

 

Section 5.2             Applicable Law.  The provisions of this Plan shall be
construed and enforced according to the laws of the State of Minnesota to the
extent that such laws are not preempted by the laws of the United States of
America.  All controversies, disputes,
and claims arising hereunder shall be submitted to the United States District
Court for the District of Minnesota.

 

 

ARTICLE VI

 

BENEFICIARY DESIGNATION

 

A participant who is single at
the time of his or her termination of employment shall have the right to
designate any person or persons as Beneficiary or Beneficiaries to whom payment
under this Plan shall be made upon Participant’s death.  Each beneficiary designation shall become
effective only when filed in writing with the Company during the Participant’s
lifetime on a form prescribed by the Company. 
The filing of a new Beneficiary designation form will cancel all
beneficiary designations previously filed.

 

ARTICLE VII

 

TRANSFERS

 

Section 7.1             Application.  This Article VII applies to Employees who are
subject to Section 2.4 (“Affected Participant”).

 

Section 7.2             Initial One-Time Transfer.  The April 30, 2002 actuarial lump sum present
value of an Affected Participant’s accrued survivor benefit determined under
Article III of the Plan as of December 31, 2001, shall be transferred to the
SMG EDCP as a credit to the Participant’s deferral account under the SMG
EDCP.  The actuarial lump sum present
value shall be determined in accordance with the provisions of the SMG EDCP and
shall be forfeited in the event the Participant fails to satisfy the
requirements of Section 2.3.

 

Section 7.3             Annual Adjustments.  On or about April 30 of each year following
the Initial One-Time Transfer under Section 7.2, an adjustment will be made to
a Participant’s deferral account under the SMG EDCP to reflect the change in
the actuarial lump sum present value of the Participant’s survivor benefit
determined under Article III of this Plan offset by amounts previously
transferred (plus earnings).  This annual
adjustment is determined in accordance with the provisions of the SMG EDCP.Exhibit 10.1

 

RISK MANAGEMENT CONTRACT

 

THIS AGREEMENT is entered
into on the 28th day of November, 2005, by and among FCStone, LLC (“FCStone”),
an Iowa limited liability company with its main office at 2829 Westown Parkway,
West Des Monies, Iowa 50266, and Dakota Ethanol, L.L.C., a South Dakota limited
liability company (Client) with its
main office located at P.O. Box 100, Wentworth, South Dakota 57075,

 

RECITALS:

 

A.           Client operates an ethanol plant facility located in Wentworth South
Dakota, (the “Plant”) and desires to establish an input origination and
marketing risk management plan.

 

B.            FCStone, which is experienced in commodity
transactions and related risk management, is willing to provide such assistance
on the terms hereby stated.

 

NOW,
THEREFORE, IT IS AGREED AS FOLLOWS BETWEEN THE PARTIES:

 

1.             FCStone.  FCStone shall, during the term
hereof, provide services to Client in the implementation of a full service
price risk management program and grain procurement program for Client (the “FCStone
Program”). The services to be provided by FCStone hereunder are set forth in Exhibit A
attached hereto.

 

2.             Fees.

 

(a)          Client shall pay a fee for services and
materials provided by FCStone to Client hereunder of $0.001 per gallon of
ethanol produced (assumed to be 40 million gallons) during the Term.  Such fees shall be payable to FCStone monthly
in advance on the first business day of each month during the term hereof.  The monthly payment shall be $3333.33 per
month,

 

(b)          In addition to such fees, Client shall also
pay to FCStone any transaction commissions, fees, services charges or mark-ups
arising from options, futures or other risk management or cash commodity
transactions executed or brokered through FCStone, its affiliates, or others in
accordance with their applicable schedules of rates, except that FCStone
guarantees that the rate for exchange-traded futures and options contracts
shall not be more than $12.50 per round turn, plus all applicable exchange
fees, during the initial term hereof. 
Any OTC (over-the-counter)
transactions will be $10.00 per round turn, plus any applicable fees, during
the initial term hereof.

 

 

3.             Client Representative. Client shall designate one or more persons
who shall be authorized and directed to receive services hereunder and to make
all hedging and merchandising and purchasing and sales decisions for
Client.  All directions, transactions and
authorizations given by such representative to FCStone shall be binding upon
Client.  FCStone shall be entitled to
rely on the authorization of such persons until it receives written
notification from Client that such authorization has been revoked.

 

4.             Transactions with FCStone and FCStone
Affiliates. Client
understands, approves, authorizes, and agrees that FCStone as an advisor may recommend
that Client enter into transactions where FCStone will act as a broker or
futures commission merchant or where Client may enter into transactions with
one or more companies which are under common ownership or control with FCStone,
including, but not limited to, FCStone Trading, L.L.C. with respect to physical
energy products and over the counter swaps and options and FGDT, L.L.C. with
respect to cash grain. FCStone may also participate on Client’s behalf in
negotiations with one or more elevators, which are members of FCStone’s parent
company.  All futures, swap or cash
commodity transactions involving Client, FCStone and its affiliates shall be
subject to, and shall be governed by, the applicable customer agreements,
master agreements, confirmations, and other documentation thereof.

 

5.             FCStone Limitations.

 

(a)          To the extent and if any brokerage services
are provided by FCStone it will be to find suppliers or purchasers for Client.
FCStone will not purchase or sell grain, nor will it be directly involved in
the purchase of the grain involving Client. FCStone may give merchandising,
purchasing and hedging advice to Client, but all decisions on purchasing,
merchandising and hedging strategy will be made by Client. All hedging
positions will be the responsibility of Client, in Client’s account with
FCStone or other relevant party.  All
positions shall be for the purpose of hedging against price risks associated
with the Client’s operations.

 

(b)          FCStone assumes no responsibility for the
completion or performance of any contracts between Client and Client’s
customers and suppliers, and Client agrees that it shall not bring any action
or make any claim against FCStone based on any act, omission or claim of any of
Client’s customers or suppliers.

 

(c)          To the extent FCStone provides services
relating to accounting systems, sole responsibility for the accuracy and
completeness of Client’s books and

 

2

 

financial
statements shall remain with Client. 
FCStone shall not be deemed to attest in any way to the accuracy of such
books and financial statements.

 

(d)          FCStone assumes no responsibility for tax
advice, tax planning, or tax returns or tax reporting.

 

6.             Confidentiality Agreement. The parties have previously executed a
Confidentiality and Nondisclosure Agreement. Such agreement shall remain in
full force and effect and shall apply and govern all disclosure and use of
confidential information hereunder.

 

7.             Public
Disclosure. Any public announcements concerning the transaction
contemplated by this letter shall be approved in advance by FCStone and Client,
except for disclosures required by law,
in which case the disclosing party shall provide a copy of the disclosure to
the other party prior to its public release.

 

8.             Terms and Termination.

 

(a)          The initial term of this Agreement shall
commence on the Effective Date hereof and shall continue until October 31,
2006. This contract will automatically renew for an additional term of one (1) year
unless Client gives notice of non-renewal in writing to FCStone at least four (4) months
prior to the end of the initial term. 
The “Effective Date” shall be November 10, 2005.

 

(b)          This Agreement may be terminated by Client as
to FCStone in the event of material breach of any of the material terms hereof
by such other party, by written notice specifying the breach, which notice
shall be effective fifteen (15) days after it is given unless the receiving
party cures the breach within such time. 
This Agreement may be terminated by FCStone as to Client in the event of
material breach of any of the material terms hereof by Client, by written
notice specifying the breach, which notice shall be effective fifteen (15) days
after it is given unless the receiving party cures the breach within such
time.  This Agreement may be terminated
immediately without notice at the election of any party in the event of
bankruptcy, or any other receivership or insolvency proceeding is filed by or
against another party.

 

(c)          This Agreement may also be terminated by the
mutual consent of the parties on such terms as the parties may agree.

 

(d)          In addition to any other method of
terminating this Agreement, either party may unilaterally terminate this
Agreement at any time if such termination shall be required by any regulatory
authority, and such termination shall be

 

3

 

effective
on the 30th day following the giving of notice of intent to
terminate.

 

9.             Licenses, Bonds, and Insurance.  Each
party represents that it now has and will maintain in full force and effect
during the term of this Agreement, at its sole cost, all necessary state and
federal licenses, bonds and insurance in accordance with applicable state or
federal laws and regulations.

 

10.           Limitation
of Liability.  EACH PARTY UNDERSTANDS
THAT NO OTHER PARTY MAKES ANY GUARANTEE, EXPRESS OR IMPLIED, TO ANY OTHER OF PROFIT, OR OF ANY PARTICULAR ECONOMIC RESULTS
FROM TRANSACTIONS HEREUNDER. IN NO EVENT SHALL ANY PARTY BE LIABLE FOR SPECIAL,
COLLATERAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES FOR ANY ACT OR OMISSION COMING
WITHIN THE SCOPE OF THIS AGREEMENT OR FOR BREACH OF ANY OF THE PROVISIONS OF
THIS AGREEMENT, EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  SUCH EXCLUDED DAMAGES INCLUDE, BUT ARE NOT
LIMITED TO, LOSS OF GOODWILL, LOSS OF PROFITS, LOSS OF USE AND INTERRUPTION OF
BUSINESS.

 

11.           Disclaimer. Client understands and agrees that FCStone makes no warranty
respecting legal or regulatory requirements and risks. Client shall obtain such
legal and regulatory advice from third parties as it may deem necessary
respecting the applicability of legal and regulatory requirements applicable to
Client’s business.

 

12.           Indemnity.  Subject to the limitations set
forth in Section 10, the parties agree to indemnify each other as follows:

 

(a)          Client shall indemnify FCStone and their
brokers, officers, agents and employees and hold them harmless from and against
any claims, demands, liability or expense, including attorney’s fees and other
litigation expenses, arising out of claims by Client’s customers or suppliers,
or also arising out of a breach by Client of any covenant, representation or
warranty herein, or any negligence, fraud or misrepresentation of Client,
except to the extent such losses or damages are caused by the negligence,
fraud, willful injury or willful violation of law by the FCStone, or its
officers, directors, employees and agents or by the reckless disregard of its
duties hereunder by any such person.

 

(b)          FCStone shall indemnify, defend Client, and
its officers, directors, employees and agents and hold them harmless from and
against any claims, demands, liability or expense, including attorneys’ fees
and other litigation expenses arising out of a breach by FCStone of any covenant,
representation

 

4

 

or
warranty herein, or any negligence, fraud or misrepresentation of FCStone,
except to the extent such losses or damages are caused by the negligence,
fraud, willful injury or willful violation of law by the Client, or its
officers, directors, employees and agents or by the reckless disregard of its
duties hereunder by any such person.

 

13.           Notices. Any notices permitted or required hereunder shall be in writing,
signed by an officer duly authorized of the party giving such notice, and shall
either be hand delivered or mailed.  If
mailed, notice shall be sent by certified, first class, return receipt
requested, mail to the address shown above, or any other address subsequently
specified by notice from one party to the other.

 

14.           General.

 

(a)          This Agreement is the entire understanding of
the parties concerning the subject matter hereof and it may be modified only in
writing signed by the parties.  All
commodities, futures, options, and swap transactions shall be subject to the
customer or master agreements between Client and FCStone, its affiliates, or
others. The parties may enter into other agreements in writing, including but
not limited to service agreements, customer agreements and master agreements
with respect to commodity futures options and swaps.

 

(b)            If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

 

(c)            No party shall be liable for any failure to
perform any or all of the provisions of this Agreement if and to the extent
that performance has been delayed or prevented by reason of any cause beyond
the reasonable control of such party. 
The expression “cause beyond the reasonable control” shall be deemed to
include, but not be limited to: acts, regulations, laws, or restraints imposed
by any governmental body; wars, hostilities, sabotage, riots, or commotions;
acts of God; or fires, frost, storms, or lightning.

 

(d)            This Agreement is not intended to, and does
not, create or give rise to any fiduciary duty on the part of any party to any
other.

 

(e)            No action, regardless of its nature or form,
arising from or in relation to this Agreement may be brought by either party
more than two (2) years after the cause of action has arisen, or, in the
case of an action for nonpayment, more than two (2) years from the date
the last payment was due.  Venue for any
action arising from or in relation to this Agreement shall be in State or

 

5

 

Federal court in Lake or Minnehaha Counties, South Dakota.

 

(f)             This Agreement is governed by and shall be
construed under the laws of the State of South Dakota.

 

(g)            This Agreement shall be binding upon and
inure to the benefit of the parties and the successors and assigns of the
entire business and goodwill of FCStone and Client, but shall not be otherwise
assignable without the express consent of the other parties.

 

Dated and executed as of the
day and year first written above.

 

 

	
  Dakota
  Ethanol

  
	
   

  
	
  BY:

  	
  Brian
  Woldt

  	
   

  
	
   

  	
  Its Chairman, Board of Managers

  
	
   

  
	
  FCSTONE,
  LLC

  
	
   

  
	
  BY:

  	
  Jason
  Sagebiel

  	
   

  
	
   

  	
  Its:
  Risk Management Consultant

  
						

 

6

 

EXHIBIT A

 

FCStone Services

 

FCStone will provide the
following services based on sound risk management principles, using FCStone’s
Basis Trading experience today with the futures and options markets to reduce
Client’s exposure to commodity price changes.

 

I.           General Scope.  FCStone will provide advice,
assistance and risk management with respect to Client’s grain original, energy
and transportation, procurement and output sales.

 

II.          Consulting Services and Program: FCStone services to Client
shall follow:

 

1)      FCStone shall provide Client with price risk
management evaluation, review and advice in relation to use of Corn and/or any
other grain products as they relate to the day-to-day operations of the plant
on both cash grain and futures/options and OTC products.

 

Such
services to be summarized monthly/annually in a detailed report prepared by
FCStone for the Client staff/board, and accordingly to their satisfaction in
terms of content and accountability.

 

III.        Internal Risk Management Procedures:

 

A.       Risk management guidelines and controls.  Risk management recommendations regarding position limits, strategies,
credit exposure and volumes will be presented for management and board
approval.

 

B.       Establish Corporate Risk Policy — Assess
Risk Profile — Define Hedge
Objective.

 

7

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