Exhibit 10.18
[C.H. Robinson Letterhead]
February 1, 2000
MANAGEMENT BONUS PLAN
The Compensation Committee is pleased to initiate the management bonus plan
for certain selected personnel. Compared with prior plans some modifications
have been made which the Compensation Committee believes will be beneficial.
C.H. Robinson Worldwide, Inc.'s (the Company's) continued growth will cause this
program to give you increasing financial rewards.
1. The plan will run for one calendar year, commencing in 2000. There is
no commitment by the Committee or the Company that the plan will
continue beyond this year.
2. The units allocated to you below are for the year 2000. These units
may be decreased or increased, or remain the same in any year at the
discretion of the Committee.
3. The individual must be an employee on December 31 of the plan year in
order to earn the award.
4. Payment of any awards earned hereunder will be paid in cash or such
other medium as determined by the Compensation Committee.
5. Profit Sharing will be paid only on those awards earned and paid, and
in the year those awards are paid.
6. This award shall be based on the Company's earnings prior to federal
and state income taxes, to any expense associated with this executive
bonus plan, and to extraordinary gains or losses from the sale of all
or part of various businesses. The calculation of the award value will
be determined by the Compensation Committee which determination shall
be final and binding on all parties. The individual award value shall
be determined by taking the number of units in each bracket and
multiplying by the unit value for units in that bracket. The value of
a whole unit in each bracket is equal to .1% of the final pre tax
earnings included in that bracket. For example, if we were to achieve
our pre tax earnings plan for 2000 of $106,000,000 each unit in the
following brackets would have a value as follows:
BRACKET PRE TAX EARNINGS RANGE UNIT VALUE
------- ---------------------- -----------
A $0 to $10,000,000
B $10,000,000 to $20,000,000
C $20,000,000 to $30,000,000
D $30,000,000 to $40,000,000
E $40,000,000 to $50,000,000
F $50,000,000 to $60,000,000
G $60,000,000 to $70,000,000
H $70,000,000 to $80,000,000
I $80,000,000 to $90,000,000
J $90,000,000 to $95,000,000
K $95,000,000 to $100,000,000
L $100,000,000 to $105,000,000
M $105,000,000 to $110,000,000
N $110,000,000 to $115,000,000
You have been awarded the following units:
BRACKET PRE TAX EARNINGS RANGE NUMBER OF UNITS
------- ---------------------- ---------------
A $0 to $ 10,000,000
B $ 10,000,000 to $ 20,000,000
C $ 20,000,000 to $ 30,000,000
D $ 30,000,000 to $ 40,000,000
E $ 40,000,000 to $ 50,000,000
F $ 50,000,000 to $ 60,000,000
G $ 60,000,000 to $ 70,000,000
H $ 70,000,000 to $ 80,000,000
I $ 80,000,000 to $ 90,000,000
J $ 90,000,000 to $ 95,000,000
K $ 95,000,000 to $100,000,000
L $100,000,000 to $105,000,000
M $105,000,000 to $110,000,000
N $110,000,000 to $115,000,000
7. Any awards earned hereunder shall be paid as soon as administratively
practical following the end of the year to which the cash award
relates.
8. Any payment due, paid, or advanced hereunder will be forfeited if you
leave the Company and are employed or perform a service that is
determined to be in direct competition with the Company or its
affiliates or subsidiaries, or if you disclose any confidential
information or trade secrets of the Company or its affiliates or
subsidiaries. The Compensation Committee's determination of this is
final. Your participation in the program shall not confer on you any
right to continued employment with the Company, nor will it interfere
in any way with the right of the Company to terminate such employment
at any time. Furthermore, the adoption of this program will not in any
way interfere with the right of the Company to select among, adopt or
change any business, investment, or compensation policies or plans at
any time or from time to time in its sole and absolute discretion.
9. Individuals may take advances against the awards. The advance that may
be taken is subject to the absolute discretion of the Compensation
Committee.
10. The Company will withhold the following from advances and final
payouts: federal and state income tax withholding, FICA withholding,
loan payments to the Company, and any other withholding required by
law.
The Committee is enthusiastic about this program, as it feels that the more
incentives it can provide each person, the more vitally and personally
interested and involved this person will become in making C. H. Robinson
Worldwide, Inc. a bigger and better company.
Yours very truly,
John Wiehoff
President
Enclosure