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