Corporate Governance Guidelines
(Adopted August 1, 2006)

1. Composition of the Board and Board Membership Criteria; Director Qualifications

The Nominating and Corporate Governance Committee shall recommend to the Board criteria for Board membership, which shall include the criteria set forth in these Corporate Governance Guidelines, and shall recommend individuals for membership on the Company’s Board of Directors.  In making its recommendations, the Nominating and Corporate Governance Committee shall:

review candidates’ qualifications for membership on the Board (including making a specific determination as to the independence of the candidate) based on the criteria approved by the Board (and taking into account the enhanced independence, financial literary and financial expertise standards that may be required under law or New York Stock Exchange (“NYSE”) rules for audit committee membership purposes);

in evaluating current directors for re-nomination to the Board, assess the performance of such director; and

periodically review the composition of the Board in light of the current challenges and needs of the Board and the Company, and determine whether it may be appropriate to add or remove individuals after considering issues of judgment, diversity, age, skills, background and experience.

Independence

A majority of the Board shall be comprised of directors meeting the independence requirements of the NYSE at a minimum.  The Board shall make an affirmative determination at least annually as to the independence of each director.

Term Limits

The board of directors does not believe that it is desirable or in the best interests of the Company to limit the number of terms for which an individual may serve as a member of the Board.

Retirement Age

It is the policy of the Board to avoid a mandatory retirement age for directors which would have the disadvantage of discontinuing the availability and contributions of directors who are otherwise capable and valuable members of the Board.

Simultaneous Service on Other Public Company Boards

The Board does not believe that its members should be prohibited from serving on board of directors and/or committees of other entities or organizations, and the Board has not adopted any guidelines limiting such activities.  The Nominating and Corporate Governance Committee and the Board, however, will take into account the nature of, and time involved in, the service of a member of the board of directors to other entities and organizations in evaluating the suitability of individual members for service on the board of directors.  Notwithstanding the foregoing, any service to other entities and organizations shall be consistent with the Company's conflict of interest policies and all laws, rules and regulations applicable to the Company, including those of the NYSE and the SEC.

Changes in Primary Employment

It is the policy of the Board that every director, including the CEO and any other inside directors, must notify the Nominating and Corporate Governance Committee of his or her retirement, any change in employer and any other significant change in professional roles and responsibilities.  The Nominating and Corporate Governance Committee shall evaluate the continued appropriateness of Board membership under the new circumstances and make a recommendation to the Board as to any action to be taken with respect to continued Board membership.

2. Director Responsibilities

The Board acts as the ultimate decision-making body of the Company and advises and oversees management, who are responsible for the day-to-day operations and management of the Company.  In fulfilling this role, each director must act in what he or she reasonably believes to be in the best interests of the Company and must exercise his or her business judgment.

Participation at and Preparation for Board Meetings

The Company expects directors to be active and engaged in discharging their duties and to keep themselves informed about the business and operations of the Company.  Directors are expected to attend all Board meetings and the meetings of the committees on which they serve and to prepare themselves for these meetings.

In order for the Board to exercise fully its oversight functions, management provides the Board with access to information regarding the Company and the markets in which the Company operates.  All materials, information and data that is relevant to the understanding by the members of the board of directors of matters to be discussed at its meetings, where feasible, should be distributed, either electronically or in writing, to all members of the board of directors in advance of the meeting, and directors are expected to review such materials prior to the meeting.  Such materials, information and data shall be distributed in a manner that, considering the complexity of the materials, information and data, will provide each member of the board of directors with a reasonable opportunity to review the materials, information and data.

Company Performance and Corporate Strategy

The Board reviews the Company’s financial performance on a regular basis at Board meetings and through periodic updates, with a particular focus on peer and competitive comparisons.  These reviews include the views of management.

The Board also conducts an annual off-site meeting to review and approve the Company’s long-term strategy, and assess its strategic, competitive and financial performance, on both an absolute basis and in relation to the performance, practices and policies of its peers and competitors.

3. Board Agenda

The Chairman of the Board, in conjunction with the CEO, shall determine the frequency and length of Board meetings and shall set the agenda for each Board meeting.  Board members are encouraged to suggest the inclusion of additional items on an agenda, and any director may request that an item be placed on an agenda.

4. Meetings of Non-Management Directors

The Company’s non-management directors shall regularly schedule executive sessions in which management does not participate.  If this group includes directors who do not meet the independence standards of the NYSE, the directors who are so independent shall also meet in executive session at least once a year.

5. Board Size

The Board presently has seven members.  Although the Board considers its present size to be appropriate, it may consider expanding its size to accommodate an outstanding candidate or candidates or reducing its size if the Board determines that a smaller Board would be more appropriate.  The Nominating and Corporate Governance Committee shall periodically review the size of the Board and recommend any proposed changes to the Board.

6. Chairman of the Board and CEO

The Board believes it is important to retain its flexibility to allocate the responsibilities of the offices of the Chairman and CEO in any way that is in the best interests of the Company at a given point in time.  The Board may make a determination as to the appropriateness of its current policies in connection with the recruitment and succession of the Chairman of the Board and/or the CEO.

7. Board Committees

The Board shall have at all times an Audit Committee, a Compensation Committee and a Nominating and Corporate Governance Committee.  Subject to any changes that the Board may make from time to time:

·         the Audit Committee shall generally be responsible for overseeing the integrity of the Company’s financial statements, its independent auditor, its internal audit function and compliance by the Company with legal and regulatory requirements;

·         the Compensation Committee shall generally be responsible for overseeing the Company’s compensation and benefits policies, evaluating executive officer performance and compensation and reviewing the Company’s management succession plan; and

·         the Nominating and Corporate Governance Committee shall generally be responsible for identifying qualified Board candidates, recommending director nominees and appointments to Board committees, evaluating Board performance, overseeing director compensation and overseeing the Company’s Corporate Governance Guidelines and Code of Business Conduct and Ethics.

Each of the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee shall operate pursuant to its own written charter.  These charters shall, among other things, set forth the purpose, goals and responsibilities of the particular committee, the procedures for committee member appointment and removal and committee structure and operations, as well as reporting to the Board. The charters shall also provide for an annual evaluation of each committee’s performance.

Only independent directors meeting the independence requirements of the NYSE and, for audit committee members, Rule 10A-3 of the Securities Exchange Act of 1934 and any related rules promulgated by the Securities and Exchange Commission may serve on these three committees.  Committee members shall be appointed by the Board based upon the recommendation of the Nominating and Corporate Governance Committee, except for the Nominating and Corporate Governance Committee, which is directly appointed by the Board.  The Board may, from time to time, establish or maintain additional committees as it deems appropriate and in the best interests of the Company.

In making its recommendations for committee appointments, the Nominating and Corporate Governance Committee shall:

·         review candidates’ qualifications for membership on the committee (including a determination as to the independence of the candidate) based on the criteria recommended by the Nominating and Corporate Governance Committee;

·         in evaluating current directors for re‑appointment to a committee, assess the performance of such director and of such committee; and

·         periodically review the composition of the committee in light of the current challenges and needs of the committee, and determine whether it may be appropriate to add or remove individuals after considering issues of judgment, diversity, age, skills, background and experience.

While the rotation of committee members at certain set intervals should be considered periodically, rotation is not required because the Board believes there are significant benefits attributable to continuity and experience gained in service on a particular committee over time.

8. Board Member Access to Management and Independent Advisors

Board members shall have access to the management and employees of the Company and to its outside counsel and auditors.  Any meetings or contacts that a director wishes to initiate may be arranged through the CEO or the Secretary or directly by the director in appropriate circumstances.

Executive officers and other members of senior management are expected to be present at Board meetings at the invitation of the Board.  The Board encourages senior management to make presentations and to invite to Board meetings managers and other employees who can provide additional insight into the items being discussed.

The Board and each of its committees is authorized to hire independent legal, financial or other advisors as they may consider necessary, without conferring with or obtaining the approval of management or, in the case of committees, the full Board.

9. Director Compensation

The Compensation Committee shall review and approve compensation (including stock option grants and other equity-based compensation) for the Company’s directors.  In so reviewing and approving director compensation, the Compensation Committee shall, among other things, identify corporate goals and objectives relevant to director compensation and evaluate the performance of the Board in light of such goals and objectives and set director compensation based on such evaluation and such other factors as the Compensation Committee deems appropriate and in the best interests of the Company (including the cost to the Company of such compensation).

10. Director Orientation and Continuing Education

All new members of the Board are encouraged to participate in the Company’s orientation program for directors.  Other directors may also attend the orientation program.  All directors will be offered the opportunity, and are encouraged, to participate in continuing education programs in order to stay current and knowledgeable about the business of the Company, including attendance at the annual Renewable Fuels Association’s National Ethanol Conference on Policy & Marketing and one other industry conference for which the Company will reimburse reasonable travel and conference expenses.

Such orientation and continuing education programs shall be developed and overseen by the Nominating and Corporate Governance Committee of the Board.

11. Management Evaluation and Management Succession

The Compensation Committee shall evaluate the performance of the senior management of the Company and shall present its findings to the full Board.  The Board shall review the Compensation Committee’s report in order to ensure that management’s performance is satisfactory and that management is providing the best leadership for the Company in the long and short-term.

The Compensation Committee shall review and report to the Board on the Company’s succession planning, including succession planning in the case of the incapacitation, retirement or removal of the CEO.  The CEO shall provide a report to the Compensation Committee recommending and evaluating potential successors, along with a review of any development plans recommended for such individuals.  The CEO shall also provide to the Board, on an ongoing basis, his or her recommendation as to a successor in the event of an unexpected emergency.

12. Annual Performance Evaluation

The Board, led by the Nominating and Corporate Governance Committee, shall establish and conduct an annual self-evaluation to determine whether it and its committees are functioning effectively.  The Nominating and Corporate Governance Committee shall oversee the evaluation with each director completing a questionnaire developed by the Nominating and Corporate Governance Committee with respect to various criteria.  The collective evaluations shall be compiled in advance of the review session and shall be presented by the Chairman of the Nominating and Corporate Governance Committee to the full Board for discussion.  This process shall also include annual self-assessments by each Board committee, relying on a review process similar to that used by the Board, with performance criteria for each committee established on the basis of its charter.