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SEC Filings

S-1/A
CHIPOTLE MEXICAN GRILL INC filed this Form S-1/A on 12/23/2005
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Other Terms and Conditions Relating to Accounting Services


Accounting Data and Documents

 

* All accounting transactional data is owned by Chipotle.
* All paper accounting documents are owned by Chipotle. McDonald's will produce any stored documents upon request within 30 days.
* Chipotle agrees to respond to System issues that impact McDonald's service levels with 24 hours.

 

McDonald's processes on the Chipotle ERP System (Oracle), connecting remotely. The System is administrated by Chipotle. Chipotle employs a 3rd party for hosting, and is responsible in entirety for managing the relationship. All accounting transactional data is maintained by Chipotle.

Certain paper accounting documents are filed in Columbus or moved to off-site storage in Columbus (McDonald's maintains storage log).

Rights to any Shared Tools/Technology:
*Electronic Invoicing
*Workflow
*Accounting Tools

 

Electronic Invoicing/Workflow
*Upon termination of delivery of the Accounting Services by McDonald's, Chipotle will be permitted to copy Sterling configuration information if they choose to buy Sterling software.

Accounting Tools
* Upon termination of delivery of the Accounting Services by McDonald's, Chipotle will be permitted to copy these specific tools.
* Future accounting tool development by McDonald's will be fee basis (fully loaded cost) and subject to the same agreements as the existing tools.

 

Electronic Invoicing (EDI)—One translation software (Sterling GIS) and architecture (hardware and hosting) are used for McOpCo, Chipotle, and CanOpCo restaurant accounts payable invoices. All entities bear in the related total cost of ownership in relation to usage. Two times daily, transactional data is sent from the translator to Chipotle's ERP System (Oracle A/P data tables), which is owned by and controlled by Chipotle. Additionally, a Tools Warehouse is owned by McDonald's. Oracle tables are copied to this Warehouse so that business rules can be applied to the EDI data for screening prior to acceptance (i.e. valid stores, duplicates, delivery date valid).
Workflow (in development)—Sterling GIS is tool used also for invoice workflow. Front end a/p entry will be via this tool. On a daily basis, transactional data is sent from the translator to Chipotle ERP Sytstem (Oracle A/P data tables), which is owned by and controlled by Chipotle. Additionally, a Tools Warehouse is owned by McDonald's. Oracle tables are copied to this Warehouse so that business rules can be applied to the workflow data.
Accounting Tools—The following accounting tools contained in Chart B have been developed by McDonald's. These tools enable a large reduction in accounting labor associated with certain accounting processes. The tools are excel based and are housed in the Tools Warehouse. Oracle tables are copied to this Warehouse so that business rules can be applied to flag exceptions for research and resolution.

System Response Obligations

 

Chipotle agrees to respond to System issues that impact McDonald's service levels as follows:
* Production down problems—acknowledge receipt of issue within 1 business hour (close), 4 business hours (other). Continuous work to resolve.
* Non production down problems—acknowledge receipt of issue within 1 business day. Weekly status update.

 

McDonald's processes on the Chipotle ERP System (Oracle), connecting remotely. The System is administrated by Chipotle.

 

 

McDonald's agrees to the same criterion as above for Electronic Invoicing, Workflow, and Accounting Tools.

 

 

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