Highwater Ethanol 2018 Executive Bonus Plan for CEO and CFO
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Bonus & Incentive Agreements
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 | ||||||||||||||||||||
