Document:

a2020incentivestockoptio

                 C.H. ROBINSON INCENTIVE STOCK OPTION (TIME-BASED U.S.) AGREEMENT       THIS AGREEMENT  (the “Agreement”), made on the Grant Date set forth in the C. H. Robinson Worldwide, Inc. Equity  Award letter dated February 6, 2020 by and between C.H. ROBINSON WORLDWIDE, INC. , a Delaware corporation (the  “Company”), and the employee named on the C. H. Robinson Worldwide, Inc. Equity Award letter (“Employee”), pursuant  to the Company’s 2013 Equity Incentive Plan (the “Plan”).      Unless the context indicates otherwise, terms that are not defined in this Agreement shall have the meaning set forth  in the Plan as it currently exists or as it is amended in the future.  For good and valuable consideration, the receipt and  adequacy of which are hereby acknowledged, the Company and Employee hereby agree as follows:      1.  Grant of Option       The Company hereby grants to Employee, on the Grant Date set forth in the C. H. Robinson Worldwide, Inc. Equity    Award letter, the right and option (hereinafter called the “Option”) to purchase all or any part of an aggregate of the    number of shares of Common Stock, par value $0.10 per share (the “Common Stock”), set forth on the C. H. Robinson    Worldwide, Inc. Equity Award letter (the “Option Shares”) at the price per share set forth on the C. H. Robinson    Worldwide, Inc. Equity Award letter  on the terms and conditions set forth in this Agreement and in the Plan. This    Option is intended to be an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of    1986, as amended (the “Code”). The Option shall terminate at the close of business ten (10) years from the Award    Date, or such shorter period as is prescribed herein. Employee shall not have any of the rights of a stockholder with    respect to the shares subject to the Option until such shares shall be issued to Employee upon the proper exercise of    the Option.      2.  Vesting and Exercisability      (a)   Except as otherwise provided in paragraphs 3 and 5, Options granted to a participant will vest in equal annual    installments over a five (5) year period contingent on the participant’s continued Service.  Beginning on December 31,    2020, and on each December 31 thereafter through December 31, 2024, an equal portion (20%) of the Options will vest    and become a right to receive an equal number of shares of the Company’s common stock.         (b)   Subject to the terms and conditions set forth herein and in the Plan, the vested portion of this Option shall be    exercisable by Employee until the termination of the Option.  The vesting terms provided above shall be cumulative,    meaning that to the extent the Option has not already been exercised and has not expired, terminated or been    forfeited, Employee or the person otherwise entitled to exercise the Option under the terms of this Agreement and the    Plan may at any time purchase all or any portion of the then vested Option Shares.           (c)  During the lifetime of Employee, the Option shall be exercisable only by Employee and shall not be assignable or    transferable by Employee, other than by will or the laws of descent and distribution, as further provided in Section 6(c)    of the Plan.        (d) Notwithstanding Section 2(a), the vesting of this Option shall be accelerated, and this Option may be exercised as to    all Option Shares remaining subject to this Option Agreement, on the date of a Change in Control.        (e) Employee understands that to the extent that the aggregate Fair Market Value (determined at the time the Option    was granted) of the shares of Common Stock with respect to which all incentive stock options within the meaning of    Section 422 of the Code are exercisable for the first time by Employee during any calendar year exceed $100,000, in    accordance with Section 422(d) of the Code such options shall be treated as options that do not qualify as incentive    stock options.                 SOPTS20        February 2020 

 

3.  Effect of Termination of Employment       (a) Except as otherwise provided herein, if Employee ceases to be an Employee (as defined in the Plan) prior to the    termination of the Option, then Employee shall (i) forfeit the Option Shares that have not yet become vested, which    shall be cancelled and be of no further force or effect, and (ii) subject to Section 3(b), retain the right to exercise any    Option Shares that have previously become vested until the termination date of the Option.  If, prior to any    termination of Employment, Employee has executed and continues to adhere to a Management-Employee (“Key    Employee”) Agreement in favor of the Company which contains a non-competition provision, then the Option shall not    be terminated and vesting shall continue through the end of two (2) additional Measurement Periods following    Employee’s termination of Employment with the Company. In addition, if prior to any termination of Employment,    Employee has executed and continues to comply with the non-competition and non-solicitation provisions of a    Management-Employee (“Key Employee”) Agreement during any additional Measurement Periods, and if Employee    has a minimum of five (5) consecutive years of service at the time of such termination, then the Option shall not    terminate and vesting shall continue through the end of additional Measurement Periods following such termination    according to the following schedule:                  Sum of Age in Whole Years and Tenure in Whole Years of Potential Post -Employment Vesting                               Years                     At least 50 and less than 60                 3 years                      At least 60 and less than 70                 4 years                        At least 70 and greater                    5 years          Age and Tenure are individually rounded up to the nearest whole number and Tenure is defined as the period of time    between Employee’s date of separation from Service with the Company and Employee’s last date of hire (or in the case    of an acquisition, the equivalent last date of hire with the acquired entity).  Under no event, however, will any    entitlement to continued vesting under this Section 3(a) cause the vesting period of this Option to exceed five (5) years.    Employee understands that if the Option or any portion of the Option is exercised in accordance with the above later    than three months from the date of termination of employment, the Option or such portion of the Option may not    qualify for treatment as an incentive stock option within the meaning of Section 422 of the Code.          (b) Notwithstanding the foregoing, if Employee embezzles or misappropriates Company funds or property, or is    determined by the Company to have failed to comply with the terms and conditions of any of the following agreements    which Employee may have executed in favor of the Company:  i) Confidentiality and Noncompetition Agreement, ii)    Management-Employee Agreement, iii) Sales-Employee Agreement, iv) Data Security Agreement,  or v) any other    agreement containing post-employment restrictions (collectively the “Obligations”), will immediately and automatically    forfeit the Option, whether vested or unvested, and will retain no rights with respect to such Option.         (c) If Employee shall die while this Option is still exercisable according to its terms, or if employment is terminated    because Employee has died or become subject to a Disability while in the employ of the Company or a subsidiary, if    any, and Employee shall not have fully exercised the Option, such Option shall immediately vest in full and may be    exercised at any time up to the expiration of the Option after Employee’s death or date of termination of employment    for Disability by Employee, personal representatives or administrators, or guardians of Employee, as applicable, or by    any person or persons to whom the Option is transferred by will or the applicable laws of descent and distribution.      4.  Manner of Exercise       (a) The Option may be exercised only by Employee or as otherwise provided herein or in the Plan by delivering within    the Option period written notice to the Company at its principal office. The notice shall state the number of Option    Shares as to which the Option is being exercised and be accompanied by payment in full of the Option price for all    Option Shares designated in the notice.              SOPTS20        February 2020  

 

 (b) Employee may pay the Option price in cash, by check (bank check, certified check or personal check), by money  order, or with the approval of the Company (i) by delivering to the Company for cancellation shares of Common Stock  of the Company with a Fair Market Value as of the date the Option is exercised equal to the purchase price of the  Option Shares being purchased or (ii) by delivering to the Company a combination of cash and shares of Common Stock  of the Company with an aggregate Fair Market Value equal to the purchase price.          5.  Additional Forfeiture Provisions            Employee and the Company have entered into one or more of the agreements included as Obligations under Section  3(b). Any shares of Common Stock of the Company acquired by Employee pursuant to the exercise of this Option shall  be forfeited to the Company, in full, if Employee violates any of the terms of the Obligations or embezzles or  misappropriates Company funds or property.             6.  Miscellaneous           (a) This Option is issued pursuant to the Company’s 2013 Equity Incentive Plan, a copy of which has been provided to  the Employee, and is subject to its terms.  This Agreement and the other documents governing the Option shall be  subject to the choice of law provisions of Section 18(e) of the Plan.     (b) This Agreement shall not confer on Employee any right with respect to continuance of employment by the Company  or any of its affiliates, nor will it interfere in any way with the right of the Company to terminate such employment at  any time for any reason. Employee shall have none of the rights of a stockholder with respect to shares subject to this  Option until such shares shall have been issued to Employee upon exercise of this Option.     (c) The exercise of all or any parts of this Option shall only be effective at such time that the sale of Common Stock  pursuant to such exercise will not violate any state or federal securities or other laws.     (d) If there shall be any change in the shares of Common Stock of the Company through merger, consolidation,  reorganization, recapitalization, dividend in the form of stock (of whatever amount), stock split or other change in the  corporate structure of the Company, and all or any portion of the Option shall then be unexercised and not yet expired,  appropriate adjustments in the outstanding Option shall be made by the Company in accordance with Section 12(a) of  the Plan. Such adjustments shall include, where appropriate, changes in the number of shares of Common Stock and  the price per share subject to the outstanding Option as further provided in Section 12(a) of the Plan.     (e) The Company shall at all times during the term of the Option reserve and keep available such number of shares as  will be sufficient to satisfy the requirements of this Agreement.     (f) If Employee shall dispose of any of the shares of Common Stock of the Company acquired by Employee pursuant to  the exercise of the Option within two years from the date the Option was granted or within one year after the transfer  of any such shares to Employee upon exercise of the Option, then in order to provide the Company with the  opportunity to claim the benefit of any income tax deduction which may be available to it under the circumstances,  Employee shall promptly notify the Company of the dates of acquisition and disposition of such shares, the number of  shares so disposed of and the consideration, if any, received for such shares. In order to comply with all applicable  federal or state income tax laws or regulations, the Company may take such action as it deems appropriate to insure (i)  notice to the Company of any disposition of the Common Stock of the Company within the time periods described  above and (ii) that, if necessary, all applicable federal or state payroll, withholding, income or other taxes are withheld  or collected from Employee.     (g) In order to provide the Company with the opportunity to claim the benefit of any income tax deduction which may  be available to it upon the exercise of the Option when the Option does not qualify as an incentive stock option within  the meaning of Section 422 of the Code and in order to comply with all applicable federal or state income tax laws or  regulations, the Company may take such action as it deems appropriate to insure that, if necessary, all applicable       SOPTS20      February 2020  

 

federal or state payroll, withholding, income or other taxes are withheld or collected from Employee. Employee may  elect to satisfy his federal and state income tax withholding obligations upon exercise of this option by (i) having the  Company withhold a portion of the shares of Common Stock otherwise to be delivered upon exercise of such option  having a Fair Market Value equal to the amount of federal and state income tax required to be withheld upon such  exercise, in accordance with such rules as the Company may from time to time establish, or (ii) delivering to the  Company shares of its Common Stock other than the shares issuable upon exercise of such option with a fair market  value equal to such taxes, in accordance with such rules.                                                                C.H. ROBINSON WORLDWIDE, INC.                                            SOPTS20      February 2020a2020non-usperformanceun

      C.H. ROBINSON RESTRICTED STOCK UNIT (NON U.S. PERFORMANCE-BASED)                                                     PROGRAM       C.H. Robinson Worldwide, Inc. (the “Company”) is permitted under the terms of its 2013 Equity Incentive Plan to issue its shares and other  derivative securities to employees at various times and in various forms.  The units are subject to the terms and conditions contained in the 2013  Equity Incentive Plan (unless expressly modified below), and will be vested, earned and delivered in the form of C.H. Robinson Worldwide, Inc.  Common Stock (“Common Stock”) as outlined below.                                                   Program Outline    1.  Participants are awarded restricted stock units, which will be recorded on the books and records of the Company until delivered in accordance      with this agreement.    2.  The Measurement Period for performance shall be January 1 through December 31 of a calendar/fiscal year.  Beginning on December 31,      2020, and on each December 31 thereafter through December 31, 2024, a portion of the Award will vest, but only if and only to the extent that      the Company’s Vesting Indicator (VI) is greater than zero for the respective year, as determined by the Compensation Committee of the      Company’s Board of Directors.  The VI is defined as the sum of 10 percentage points plus  the percentage increase (or decrease) in Company      diluted net income per share for the current year over the prior year rounded to two decimal places. For purposes of calculating the VI for any      year during the Measurement Period, the growth for a year is the percentage the current year’s EPS exceeds the greater of the previous year’s      diluted net income per share or the diluted net income per share for 2019.  That sum, in turn, is rounded to  the nearest whole  percentage.        Example:                                                                                                                                                                                             Prior Year              Current Year      Percentage Increase            Diluted EPS                                                                       $2.00                       $2.19                       9.50%      Add: 10 Percentage Points                                                                                                              19.50%      Rounded to the Nearest Whole Percentage                                                                               VI=20.00%        3.  In determining how many restricted stock units are vested at the end of each year, the VI is multiplied by the original restricted stock unit grant      and then rounded to the nearest whole unit.            Example :                                                                                   Restricted Stock Unit Grant: 1,000 shares                     Year 1       Year 2       Year 3        VI:                                                            20%          12%          26%         Rounded Number of Units Vested on Dec. 31:                     200          120          260       4.  The Compensation Committee’s calculation of VI shall be final, and the Compensation Committee retains the discretion to eliminate unusual      items, if any, for purposes of calculating the VI for any particular year.      5.  Participant’s restricted stock units may vest pursuant to paragraph 2 above with respect to this award for up to 5 years (and may vest in less      than 5 years if the VI during such time period is sufficiently high enough).  Any restricted stock units remaining unvested after December 31,      2024 will be forfeited and the participant will retain no rights with respect to the forfeited units.    6.  Participant’s restricted stock units vest only while the participant is employed by the Company.  A participant must be an employee of the      Company on December 31 of a particular year in order to vest in any restricted stock units for that year.  If a participant’s employment is      terminated, whether voluntarily or involuntarily, prior to vesting of any restricted stock units, any units remaining unvested as of the date of      termination will be forfeited, and the participant will retain no rights with respect to the forfeited units.      7.  Notwithstanding the foregoing, participants who embezzle or misappropriate Company funds or property, or who the Company has determined      have failed to comply with the terms and conditions of any of the following agreements which they may have executed in favor of the Company:       i) Confidentiality and Noncompetition Agreement, ii) Management-Employee Agreement, iii) Sales-Employee Agreement, iv) Data Security      Agreement,  or v) any other agreement containing post-employment restrictions, will automatically forfeit all restricted stock awarded, whether      vested or unvested, and will retain no rights with respect to such units.    8.  Although certain units may become vested, the Common Stock shall be delivered to participant in a single distribution of shares upon the earlier      of:  February 15, 2027 or two years after the participant terminates employment with the Company.    9.  Restricted stock may not be sold, exchanged, assigned, transferred, discounted, pledged or otherwise disposed of at any time prior to delivery      of the Common Stock.     IPERFRSU20  Febraury 2020 

 

  10.  As allowed by local law, participants will be entitled to receive dividends on units awarded, whether vested or unvested, when and if dividends      are declared by the Company’s Board of Directors on the Company’s Common Stock, in an amount of cash per share equal to and on the next      regularly occurring payroll date.  Dividends paid before delivery of the Common Stock will be treated as compensation income for tax purposes      and will be subject to income and payroll tax withholding by the Company.    11.  The value of this stock award, the fair market value of the underlying shares, and the payment of dividends are outside the scope of      compensation under the participant’s employment agreement and will not be taken into account in calculating severance or termination      payments, irrespective of the reason for termination of employment.    12.  In order to comply with all applicable tax laws or regulations, the Company will withhold the minimum required statutory taxes based on the Fair      Market Value of the Common Stock as required.  You may want to contact a financial advisor and/or a tax advisor to explain what stock      ownership impacts there might be to you as the owner of stock.    13.  Participation in this program may cause a taxable event either at the time of vesting or the time of delivery.  Please consult a tax adviser to      explain your responsibility and local tax laws.  For the purpose of taxation the value of the award is determined by the use of “Fair Market      Value”.  Fair Market value for a share shall mean the last sale price of a share of the Company’s Common Stock on the Nasdaq National      Market (or other national securities exchange on which the Company’s Common Stock is then listed) on the trading date immediately preceding      the date of taxation.  If the Company’s Common Stock is not then traded in an established securities market, the Compensation Committee of      the Board of Directors shall determine Fair Market Value in accordance with the 2013 Equity Incentive Plan.    14.  This restricted stock award shall confer no rights of continued employment to the participant, nor will it interfere in any way with the right of the      Company to terminate such employment at any time.  The Company retains all rights to enforce any other agreement or contract that the      Company has with the participant.    15.  2013 Equity Incentive Plan is entirely discretionary and may be amended or terminated by the company at any time, (b) the issuance of awards      is entirely in the discretion of the company, and (c) the issuance of awards in one year does not entitle the participant to any awards in any      future year.      16.  If there shall be any change in the Company’s Common Stock through merger, consolidation, reorganization, recapitalization, dividend in the      form of stock (of whatever amount), stock split or other change in the corporate structure of the Company, appropriate adjustments shall be      made in the number of restricted stock units that are vested or unvested under this agreement in order to prevent dilution or enlargement of      rights.    17.  In the event of a Change in Control, the Compensation Committee may, in its discretion, accelerate the vesting of the restricted stock units. A      "Change in Control" shall be deemed to occur on the date (i) a public announcement [which, for purposes of this definition, shall include,      without limitation, a report filed pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended] is made by the Company or any      Person (as defined below) that such Person beneficially owns more than 50% of the Common Stock outstanding, (ii) the Company      consummates a merger, consolidation or statutory share exchange with any other Person in which the surviving entity would not have as its      directors at least 60% of the Continuing Directors (as defined below) and would not have at least 60% of its Common Stock owned by the      common shareholders of the Company prior to such merger, consolidation or statutory share exchange, (iii) a majority of the Board of Directors      is not comprised of Continuing Directors or (iv) a sale or disposition of all or substantially all of the assets of the Company or the dissolution of      the Company.  A “Continuing Director” is a director recommended by the Board of Directors of the Company for election as a director of the      Company by stockholders. "Person” means any individual, firm, corporation or other entity, and shall include any successor (by merger or      otherwise) of such entity.    18.  In the event participant dies or is determined to be “disabled” as that term is defined in the Company’s current Long Term Disability Summary      Plan Description while employed by the Company, vesting of outstanding restricted units shall be accelerated and outstanding restricted units      shall be deemed fully vested and deliverable as soon as administratively practical.    19.  This restricted stock unit award is made pursuant to the Company’s  2013 Equity Incentive Plan and is subject to the terms of such plan.       Participant may request a copy of the plan from the Company.  By participating in the CHRW Restricted Stock Unit Program, participant shall      be deemed to have accepted all the conditions of the 2013 Equity Incentive Plan and this agreement, and the terms and conditions of any rules      adopted by the Committee (as defined in the 2013 Equity Incentive Plan) and shall be fully bound thereby.  This agreement shall be construed      under the laws of the state of Minnesota.                                                                                                                                                                       Page 2 of 2  IPERFRSU20  Febraury 2020

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