Highwater Ethanol, LLC 2017 Executive Bonus Plan for CEO and CFO
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Bonus & Incentive Agreements
Summary
This agreement outlines the 2017 executive bonus plan for Highwater Ethanol, LLC's CEO, Brian Kletscher, and CFO, Lucas Schneider. The plan specifies bonus percentages based on performance metrics such as net income, EBITDA, debt service, compliance, share value, and financial reporting. Each executive's bonus is calculated as a percentage of their base salary, with the CEO eligible for up to 35% and the CFO up to 32%. The plan details how bonuses are earned based on achieving specific financial and operational targets during the fiscal year.
EX-10.55 2 ex1055executivebonusplan.htm EXECUTIVE BONUS PLAN 2017 Exhibit
Highwater Ethanol Incentive Program | ||||||||||||||||||||||
Fiscal 2017 | ||||||||||||||||||||||
Eligible | Salary | Net Income Incentive | EBITDA | Debt Service | Share Value | Yield/Project | Compliance | Total Percent Incentive | Total Incentive | |||||||||||||
Brian | Kletscher | Yes | $ | 173,040.00 | 15 | % | 5 | % | 5 | % | 2 | % | 3 | % | 5 | % | 35 | % | $ | 60,564.00 | ||
Eligible | Salary | Net Income Incentive | EBITDA | Debt Service | Share Value | Financial Reports | Audit/SEC Compliance | Total Percent Incentive | Total Incentive | |||||||||||||
Lucas | Schneider | Yes | $ 132,483.75 | 15.00% | 5.00% | 5.00% | 2.00% | 2.00% | 3.00% | 32.00% | $ 42,394.80 | |||||||||||
$ 102,958.80 | ||||||||||||||||||||||
CEO Executive Bonus | CFO Executive Bonus | |||||||||||||||||||||
Base Salary | Percent | $ 173,040.00 | Base Salary | Percent | $ 132,483.75 | |||||||||||||||||
Bonus potential | 35% | Bonus Potential | 32% | |||||||||||||||||||
1. EBITDA | 5% | 1. EBITDA | 5% | |||||||||||||||||||
Budgeted | 2% | $ 3,460.80 | Budgeted | 2% | $2,649.68 | |||||||||||||||||
plus 10% | 2% | $ 3,460.80 | plus 10% | 2% | $2,649.68 | |||||||||||||||||
plus 15% | 1% | $ 1,730.40 | plus 15% | 1% | $1,324.84 | |||||||||||||||||
2. Debt Service | 5% | 2. Debt Service | 5% | |||||||||||||||||||
Budget plus 5% | 2% | $ 3,460.80 | Budget plus 5% | 2% | $2,649.68 | |||||||||||||||||
plus 10% | 2% | $ 3,460.80 | plus 10% | 2% | $2,649.68 | |||||||||||||||||
plus 15% | 1% | $ 1,730.40 | plus 15% | 1% | $1,324.84 | |||||||||||||||||
3. Compliance | 5% | 3. Compliance | 3% | |||||||||||||||||||
MPCA/DNR Permits Water | 1% | $ 1,730.40 | SEC Reporting | 2% | $2,649.68 | |||||||||||||||||
MPCA Air Permits | 1% | $ 1,730.40 | Audit | 1% | $1,324.84 | |||||||||||||||||
Federal Rail/State Rail/OSHA | 1% | $ 1,730.40 | ||||||||||||||||||||
SEC Reporting | 2% | $ 3,460.80 | ||||||||||||||||||||
4. Operations/Yield | 2% | 4. Financial Reports | 2% | |||||||||||||||||||
2.88 | 1% | $ 1,730.40 | Monthly On Time | 1% | $1,324.84 | |||||||||||||||||
2.89 | 1% | $ 1,730.40 | Quarterly | 1% | $1,324.84 | |||||||||||||||||
5. Increase Share Value/Distribution | 1% | $ 1,730.40 | 3% | 5. Increase Share Value/Distribution | 1% | $1,324.84 | 3% | |||||||||||||||
1% | $ 1,730.40 | 6% | 1% | $1,324.84 | 6% | |||||||||||||||||
6. New Technology Reviewed | 1% | $ 1,730.40 | ||||||||||||||||||||
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% | $ 1,730.40 | $3.0 - $3.5 MM | 1% | $1,324.84 | |||||||||||||||||
$3.5 - $4.0 MM | 1% | $ 1,730.40 | $3.5 - $4.0 MM | 1% | $1,324.84 | |||||||||||||||||
$4.0- $4.5 MM | 1% | $ 1,730.40 | $4.0- $4.5 MM | 1% | $1,324.84 | |||||||||||||||||
$4.5 - $5.0 MM | 1% | $ 1,730.40 | $4.5 - $5.0 MM | 1% | $1,324.84 | |||||||||||||||||
$5.0 - $5.5 MM | 1% | $ 1,730.40 | $5.0 - $5.5 MM | 1% | $1,324.84 | |||||||||||||||||
$5.5 - $6.0 MM | 1% | $ 1,730.40 | $5.5 - $6.0 MM | 1% | $1,324.84 | |||||||||||||||||
$6.0 - $6.5 MM | 1% | $ 1,730.40 | $6.0 - $6.5 MM | 1% | $1,324.84 | |||||||||||||||||
$6.5 - $7.0 MM | 1% | $ 1,730.40 | $6.5 - $7.0 MM | 1% | $1,324.84 | |||||||||||||||||
$7.0 - $ 7.5 MM | 1% | $ 1,730.40 | $7.0 - $ 7.5 MM | 1% | $1,324.84 | |||||||||||||||||
$7.5 - $8.0 MM | 1% | $ 1,730.40 | $7.5 - $8.0 MM | 1% | $1,324.84 | |||||||||||||||||
$8.0 - $8.5 MM | 1% | $ 1,730.40 | $8.0 - $8.5 MM | 1% | $1,324.84 | |||||||||||||||||
$8.5 - $9.0 MM | 1% | $ 1,730.40 | $8.5 - $9.0 MM | 1% | $1,324.84 | |||||||||||||||||
$9.0 - $9.5 MM | 1% | $ 1,730.40 | $9.0 - $9.5 MM | 1% | $1,324.84 | |||||||||||||||||
$9.5 - $10.0 MM | 1% | $ 1,730.40 | $9.5 - $10.0 MM | 1% | $1,324.84 | |||||||||||||||||
$10.0 - $10.5 MM | 1% | $ 1,730.40 | $10.0 - $10.5 MM | 1% | $1,324.84 | |||||||||||||||||
$ 60,564.00 | $42,394.80 | |||||||||||||||||||||
