Highwater Ethanol 2018 Executive Bonus Plan for CEO and CFO

Summary

This agreement outlines the 2018 executive bonus plan for Highwater Ethanol's CEO, Brian Kletscher, and CFO, Lucas Schneider. The plan specifies bonus eligibility based on a percentage of each executive's base salary, with incentives tied to company performance metrics such as net income, EBITDA, debt service, compliance, share value, and other operational targets. The plan details how bonuses are calculated and the maximum potential payout for each executive, ensuring that compensation is linked to both financial and compliance achievements during the fiscal year.

EX-10.57 2 ex1057executivebonusplan.htm EX 10.57 2018 EXECUTIVE BONUS PLAN Exhibit


Highwater Ethanol Incentive Program
Fiscal 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eligible
Salary
Net Income Incentive
EBITDA
Debt Service
Share Value
Yield/Project
Compliance
Total Percent Incentive
Total Incentive
 
 
 
 
 
 
 
 
 
 
 
 
Brian
Kletscher
Yes
$
203,040.00

15
%
5
%
5
%
2
%
3
%
5
%
35
%
$
71,064.00

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eligible
Salary
Net Income Incentive
EBITDA
Debt Service
Share Value
Financial Reports
Audit/SEC Compliance
Total Percent Incentive
Total Incentive
 
 
 
 
 
 
 
 
 
 
 
 
Lucas
Schneider
Yes
$
137,483.75

15
%
5
%
5
%
2
%
2
%
3
%
32
%
$
43,994.80

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
115,058.80

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CEO Executive Bonus
 
 
 
 
           CFO Executive Bonus
 
 
 
 
 
Base Salary
Percent
$
203,040.00

 
 
Base Salary
 
Percent
$
137,483.75

 
 
Bonus potential
35%
 
 
 
Bonus Potential
 
32%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1. EBITDA
5%
 
 
 
1. EBITDA
 
5%
 
 
 
Budgeted
2%
$
4,060.80

 
 
Budgeted
 
2%
$
2,749.68

 
 
plus 10%
2%
$
4,060.80

 
 
plus 10%
 
2%
$
2,749.68

 
 
plus 15%
1%
$
2,030.40

 
 
plus 15%
 
1%
$
1,374.84

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2. Debt Service
5%
 
 
 
2. Debt Service
 
5%
 
 
 
Budget plus 5%
2%
$
4,060.80

 
 
Budget plus 5%
 
2%
$
2,749.68

 
 
plus 10%
2%
$
4,060.80

 
 
plus 10%
 
2%
$
2,749.68

 
 
plus 15%
1%
$
2,030.40

 
 
plus 15%
 
1%
$
1,374.84

 
 
 
 
 
 
 
 
 
 
 
 
 
 
3. Compliance
5%
 
 
 
3. Compliance
 
3%
 
 
 
MPCA/DNR Permits Water
1%
$
2,030.40

 
 
SEC Reporting
 
2%
$
2,749.68

 
 





MPCA Air Permits
1%
$
2,030.40

 
 
Audit
 
1%
$
1,374.84

 
 
Federal Rail/State Rail/OSHA
1%
$
2,030.40

 
 
 
 
 
 
 
 
SEC Reporting
2%
$
4,060.80

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4. Operations/Yield
2%
 
 
 
4. Financial Reports
2%
 
 
 
 
2.88
1%
$
2,030.40

 
 
 
Monthly On Time
1%
$
1,374.84

 
 
 
2.89
1%
$
2,030.40

 
 
 
Quarterly
1%
$
1,374.84

 
 
 
 
 
 
 
 
 
 
 
 
 
 
5. Increase Share Value/Distribution
1%
$
2,030.40

3%

 
5. Increase Share Value/Distribution
1%
$
1,374.84

3%

 
 
 
1%
$
2,030.40

6%

 
 
 
1%
$
1,374.84

6%

 
 
 
 
 
 
 
 
 
 
 
 
 
6. New Technology Reviewed
1%
$
2,030.40

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6. Income
 
 
 
 
6. Income
 
 
 
 
 
Net Income Portion
Profitability
 
 
Net Income Portion
Profitability
 
 
 
Net Income {Book}
Percent 15%
 
 
Net Income {Book}
Percent 15%
 
 
 
$3.0 - $3.5 MM
1%
$
2,030.40

 
 
$3.0 - $3.5 MM
 
1%
$
1,374.84

 
 
$3.5 - $4.0 MM
1%
$
2,030.40

 
 
$3.5 - $4.0 MM
 
1%
$
1,374.84

 
 
$4.0- $4.5 MM
1%
$
2,030.40

 
 
$4.0- $4.5 MM
 
1%
$
1,374.84

 
 
$4.5 - $5.0 MM
1%
$
2,030.40

 
 
$4.5 - $5.0 MM
 
1%
$
1,374.84

 
 
$5.0 - $5.5 MM
1%
$
2,030.40

 
 
$5.0 - $5.5 MM
 
1%
$
1,374.84

 
 
$5.5 - $6.0 MM
1%
$
2,030.40

 
 
$5.5 - $6.0 MM
 
1%
$
1,374.84

 
 
$6.0 - $6.5 MM
1%
$
2,030.40

 
 
$6.0 - $6.5 MM
 
1%
$
1,374.84

 
 
$6.5 - $7.0 MM
1%
$
2,030.40

 
 
$6.5 - $7.0 MM
 
1%
$
1,374.84

 
 
$7.0 - $ 7.5 MM
1%
$
2,030.40

 
 
$7.0 - $ 7.5 MM
 
1%
$
1,374.84

 
 
$7.5 - $8.0 MM
1%
$
2,030.40

 
 
$7.5 - $8.0 MM
 
1%
$
1,374.84

 
 
$8.0 - $8.5 MM
1%
$
2,030.40

 
 
$8.0 - $8.5 MM
 
1%
$
1,374.84

 
 
$8.5 - $9.0 MM
1%
$
2,030.40

 
 
$8.5 - $9.0 MM
 
1%
$
1,374.84

 
 
$9.0 - $9.5 MM
1%
$
2,030.40

 
 
$9.0 - $9.5 MM
 
1%
$
1,374.84

 
 
$9.5 - $10.0 MM
1%
$
2,030.40

 
 
$9.5 - $10.0 MM
 
1%
$
1,374.84

 
 
$10.0 - $10.5 MM
1%
$
2,030.40

 
 
$10.0 - $10.5 MM
 
1%
$
1,374.84

 
 
 
 
 
$
71,064.00

 
 
 
 
 
$
43,994.8