Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers. OnJanuary 1, 2020 ,South Dakota Soybean Processors, LLC (the "Company") entered into a new employment agreement with its Chief Executive Officer,Thomas J. Kersting .Mr. Kersting's agreement provides for an annual base salary of$385,000 for each of the three years endedDecember 31, 2020 , 2021 and 2022. For each calendar year thereafter, the Company's board of managers, at its sole discretion, will review and setMr. Kersting's annual base salary during the remaining term of his agreement, provided it be no less than$365,000 unless agreed to byMr. Kersting . After 2022, the agreement provides for successive 36-month terms untilMr. Kersting reaches the age of 62, at which time it will convert to a fixed three-year term ending on his 65th birthday. IfMr. Kersting is terminated without cause, he is entitled to receive: (i) his base salary for the greater of: (A) the remaining term of the agreement (up to a maximum of 36 months) or (B) 52 weeks from the date of termination; (ii) any other amounts earned, accrued or owed toMr. Kersting under the agreement but not yet paid; and (iii) any other benefits payable toMr. Kersting under any benefit plan or program of the Company.Mr. Kersting is also subject to a non-competition provision under which he is prohibited from competing with the Company during the term of the agreement and for a period of two years following his termination for any reason. In addition to his base salary, the agreement grants toMr. Kersting the right to receive an annual profit sharing bonus equal to 0.7% of the Company's annual net income in excess of$2 million . He is also entitled to paid vacations and holidays, receipt and participation in insurance benefits and retirement plans provided to other Company employees, and reimbursement of reasonable travel and other related employment expenses. Item 9.01 Financial Statements and Exhibits. (d) Exhibits. The following exhibits are filed with this report:
10.1 Employment Agreement (
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