“X” = the annual percentage change in the Comparable Restaurant Sales for the fiscal year ending December 31, 2017
“Y” = the annual percentage change in Comparable Restaurant Sales for the fiscal year ending December 31, 2018
“Z” = the annual percentage change in Comparable Restaurant Sales for the fiscal year ending December 31, 2019.
The following terms shall have the respective meanings set forth below when determining 3-Year CRS Growth:
“Comparable Restaurant” means a restaurant operated under the Chipotle Mexican Grill, Pizzeria Locale, and/or TastyMade brands by the Company or its direct or indirect Subsidiaries, beginning in such restaurant’s 13th full calendar month of operations.
“Comparable Restaurant Sales”, with respect to a fiscal year, means the net sales attributable to Comparable Restaurants that are realized during such year, as determined in accordance with generally accepted accounting principles. For avoidance of doubt, net sales from a restaurant shall only be counted after it has become a Comparable Restaurant.
Provisions Applicable to all Performance Shares
The Target Number of Performance Shares (and, with respect to the Stock Price Component, the dollar amounts designed in its Performance Goal Table) shall be adjusted to prevent the enlargement or dilution of rights under this Award Agreement due to any increase or decrease in issued shares of the Company’s Common Stock without consideration consistent with the terms of the Plan.
Straight-line interpolation shall be used to determine the Payout Percentage when the level of performance in a Performance Goal Table is between two stated levels in such table, and the Payout Percentage shall be expressed to the nearest tenth of a percent. For example, if the highest Stock Price during the Performance Period is $700, the Payout Percentage is 150%, which is the midpoint between the Payout Percentage at $650 per share and $750 per share.
Performance Shares that are earned under this Appendix A shall only be issued to the Participant to the extent that the continued employment conditions set forth in the Performance Share Agreement have been satisfied.
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