Highwater Ethanol, LLC 2016 Executive Bonus Plan for CEO and CFO
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Summary
This agreement outlines the 2016 executive bonus plan for Highwater Ethanol, LLC's CEO and CFO, Brian Kletscher and Lucas Schneider. The plan specifies how bonuses are calculated as a percentage of base salary, based on performance metrics such as net income, EBITDA, debt service, compliance, share value, and other operational targets. Each executive's bonus potential and the criteria for earning various incentive percentages are detailed, with total potential bonuses capped at 35% for the CEO and 32% for the CFO. The plan sets clear financial and compliance goals for bonus eligibility.
EX-10.47 4 ex1047executivebonusplan20.htm EXECUTIVE BONUS PLAN 2016 Exhibit
Highwater Ethanol Incentive Program | |||||||||||
Fiscal 2016 | |||||||||||
Eligible | Salary | Net Income Incentive | EBITDA | Debt Service | Share Value | Yield/Project | Compliance | Total Percent Incentive | Total Incentive | ||
Brian | Kletscher | Yes | $ 164,800.00 | 15.00% | 5.00% | 5.00% | 2.00% | 3.00% | 5.00% | 35.00% | $ 57,680.00 |
Eligible | Salary | Net Income Incentive | EBITDA | Debt Service | Share Value | Financial Reports | Audit/SEC Compliance | Total Percent Incentive | Total Incentive | ||
Lucas | Schneider | Yes | $ 126,175.00 | 15.00% | 5.00% | 5.00% | 2.00% | 2.00% | 3.00% | 32.00% | $ 40,376.00 |
$ 98,056.00 | |||||||||||
CEO Executive Bonus | CFO Executive Bonus | ||||||||||
Base Salary | Percent | $ 160,000.00 | Base Salary | Percent | $122,500.00 | ||||||
Bonus potential | 35% | Bonus Potential | 32% | ||||||||
1. EBITDA | 5% | 1. EBITDA | 5% | ||||||||
Budgeted | 2% | $ 3,200.00 | Budgeted | 2% | $2,450.00 | ||||||
plus 10% | 2% | $ 3,200.00 | plus 10% | 2% | $2,450.00 | ||||||
plus 15% | 1% | $ 1,600.00 | plus 15% | 1% | $1,225.00 | ||||||
2. Debt Service | 5% | 2. Debt Service | 5% | ||||||||
Budget plus 5% | 2% | $ 3,200.00 | Budget plus 5% | 2% | $2,450.00 | ||||||
plus 10% | 2% | $ 3,200.00 | plus 10% | 2% | $2,450.00 | ||||||
plus 15% | 1% | $ 1,600.00 | plus 15% | 1% | $1,225.00 | ||||||
3. Compliance | 5% | 3. Compliance | 3% | ||||||||
MPCA/DNR Permits Water | 1% | $ 1,600.00 | SEC Reporting | 2% | $2,450.00 | ||||||
MPCA Air Permits | 1% | $ 1,600.00 | Audit | 1% | $1,225.00 | ||||||
Federal Rail/State Rail/OSHA | 1% | $ 1,600.00 | |||||||||
SEC Reporting | 2% | $ 3,200.00 | |||||||||
4. Operations/Yield | 2% | 4. Financial Reports | 2% | ||||||||
2.88 | 1% | $ 1,600.00 | Monthly On Time | 1% | $1,225.00 | ||||||
2.89 | 1% | $ 1,600.00 | Quarterly | 1% | $1,225.00 | ||||||
5. Increase Share Value/Distribution | 1% | $ 1,600.00 | 3% | 5. Increase Share Value/Distribution | 1% | $1,225.00 | 3% | ||||
1% | $ 1,600.00 | 6% | 1% | $1,225.00 | 6% | ||||||
6. New Technology Reviewed | 1% | $ 1,600.00 | |||||||||
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% | $ 1,600.00 | $3.0 - $3.5 MM | 1% | $1,225.00 | ||||||
$3.5 - $4.0 MM | 1% | $ 1,600.00 | $3.5 - $4.0 MM | 1% | $1,225.00 | ||||||
$4.0- $4.5 MM | 1% | $ 1,600.00 | $4.0- $4.5 MM | 1% | $1,225.00 | ||||||
$4.5 - $5.0 MM | 1% | $ 1,600.00 | $4.5 - $5.0 MM | 1% | $1,225.00 | ||||||
$5.0 - $5.5 MM | 1% | $ 1,600.00 | $5.0 - $5.5 MM | 1% | $1,225.00 | ||||||
$5.5 - $6.0 MM | 1% | $ 1,600.00 | $5.5 - $6.0 MM | 1% | $1,225.00 | ||||||
$6.0 - $6.5 MM | 1% | $ 1,600.00 | $6.0 - $6.5 MM | 1% | $1,225.00 | ||||||
$6.5 - $7.0 MM | 1% | $ 1,600.00 | $6.5 - $7.0 MM | 1% | $1,225.00 | ||||||
$7.0 - $ 7.5 MM | 1% | $ 1,600.00 | $7.0 - $ 7.5 MM | 1% | $1,225.00 | ||||||
$7.5 - $8.0 MM | 1% | $ 1,600.00 | $7.5 - $8.0 MM | 1% | $1,225.00 | ||||||
$8.0 - $8.5 MM | 1% | $ 1,600.00 | $8.0 - $8.5 MM | 1% | $1,225.00 | ||||||
$8.5 - $9.0 MM | 1% | $ 1,600.00 | $8.5 - $9.0 MM | 1% | $1,225.00 | ||||||
$9.0 - $9.5 MM | 1% | $ 1,600.00 | $9.0 - $9.5 MM | 1% | $1,225.00 | ||||||
$9.5 - $10.0 MM | 1% | $ 1,600.00 | $9.5 - $10.0 MM | 1% | $1,225.00 | ||||||
$10.0 - $10.5 MM | 1% | $ 1,600.00 | $10.0 - $10.5 MM | 1% | $1,225.00 | ||||||
$ 56,000.00 | $39,200.00 | ||||||||||
