Document:

Exhibit

CVR Refining, LP
Performance-Based Bonus Plan

Philosophy / Background
CVR Refining, LP (the “Company”) is committed to wages and benefits that are competitive with a market-based, pay-for-performance compensation philosophy, providing such base pay, bonus and long-term incentive awards in line with those of the refining industry.  This Performance-Based Bonus Plan (the “Plan”) is intended to reward high performance employees, and to retain these employees in critical roles, through the issuance of bonus awards (each, a “Bonus”).

Administration
The Plan is maintained and administered by, or under the direction of, the Compensation Committee (the "Compensation Committee") of the board of directors (the “Board”) of the general partner of the Company with respect to employees of the Company and its subsidiaries, excluding CVR Energy, Inc. (“CVI”), CVR Partners, LP (“UAN”), their respective general partners and their respective subsidiaries (references to “employees” within this Plan are references to all employees of the foregoing entities).  
The Compensation Committee shall annually approve all salaries, targets and bonus metrics for employees in Grade E14 and above, and shall annually approve a total bonus pool for employees in Grade E13 and below. The Compensation Committee delegates to the Chief Executive Officer the authority to approve payouts from such total bonus pool to employees in Grade 13 and below, in his sole discretion. The Chief Executive Officer shall also be responsible for assigning salaries, bonus targets, and Grade levels to employees in Grade 13 and below.
In the event of a claim or dispute brought forth by any employee with a Grade level of E11 or below, the decision of the Chief Executive as to the facts in the case and the meaning and intent of any provision of the Plan, or its application, shall be final, binding, and conclusive. In the event of a claim or dispute brought forth by any employee with a Grade level of E12 or above, the decision of the Compensation Committee as to the facts in the case and the meaning and intent of any provision of the Plan, or its application, shall be final, binding, and conclusive.
The Plan described herein does not create a contractual obligation on the part of the Company.  The Company expressly reserves the right to modify, discontinue, or otherwise change the Plan outlined in this document at the sole and absolute discretion of the Company without advance notice.  
Introduction
The purpose of the Plan and any Bonus to be paid hereunder is to enhance the Company’s ability to attract, motivate, reward and retain employees, and to strengthen their commitment to the success of the Company.  

Eligibility and Administration
Bonuses are made based on the applicable calendar year during which the employees performed the services and are generally paid (to the extent payable) after the financials have been audited and within 90 days of the end of the calendar year (the “Performance Period” or “Period”).  

Generally, only exempt, non-exempt and non-union hourly employees are eligible to receive a Bonus, provided that, to receive a Bonus, an employee must: (i) be actively employed with the Company for at least 180 days during the calendar year; (ii) consistently perform at or above expectations for their role; (iii) be actively employed on the date of payout and not on a performance improvement plan or in corrective or disciplinary action status as a result of poor performance during the Performance Period. Employees hired prior to October 1 during the Performance Period will be eligible to receive a Bonus provided the above requirements (ii) and (iii) are met.

Subject to annual review, Bonuses are computed in accordance with each eligible employee’s Grade (as shown in Appendix A), prorated for time in an eligible position, as well as a performance multiplier of zero to 150 percent, based on performance against the achievement of the allocated Company and individual performance measures described herein. Appendices A-E present the overall compensation structure (Appendix A), example calculations (Appendices B, C), eligibility (Appendix D) and bonus payout measures (Appendix E). The Individual Performance Multiplier component of a Bonus, if any, is entirely discretionary.  

In addition, if the Adjusted EBITDA Threshold established for the Company for a given Performance Period is not reached, no Bonus will be paid for the Period, subject to Compensation Committee discretion. The Compensation Committee may, in its sole and absolute discretion, waive the Adjusted EBITDA Threshold requirement, increase, decrease, or otherwise adjust performance measures, targets, and payout ranges used hereunder, as a result of extraordinary or non-recurring events, changes in applicable accounting rules or principles, changes in the Company’s methods of accounting, changes in applicable law, changes due to consolidations, growth capital spend programs, acquisitions, or reorganizations affecting the Company and its subsidiaries and affiliates, or other similar changes in the Company’s business.

Company Performance: Environmental Health & Safety (EH&S) Measures – 25%
EH&S measures are as follows (see Appendix F for definitions):
		
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	Personal Safety – Total Recordable Injury Rate (TRIR);

		
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	Process Safety – Process Safety Tier 1 Events Incident Rate (PSIR); and

		
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	Environmental Events (EE) - Number of “numerical” releases, spills, permit exceedances and violations.

Company Performance: Financial Measures – 75%
Financial measures are objectives related to the following (see Appendix F for definitions):
		
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	Reliability; 

		
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	Equipment Utilization; 

		
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	Operating Expense; and  

		
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	Return on Capital Employed. 

Spot Bonus

Introduction
Employees making an extraordinary contribution to the furtherance of Company financial performance or advances in Company culture may be nominated by their manager or executive sponsor for a Bonus on a spot basis (a “Spot Bonus”), subject to approval by the Chief Executive. Spot Bonuses will be limited to employees in salary grades E13 and below and a maximum value of five thousand dollars ($5,000).

Terms and Conditions of Spot Bonus 
Except as specifically set forth herein, the foregoing provisions of the Plan will likewise apply to a Spot Bonus.  For the avoidance of doubt, these provisions relate to, among others, forfeiture and/or recoupment, amendment or termination, tax withholding, data protection and consent and governing law. 

General Provisions

See Appendix F for definitions relating to the Plan.

Participation in the Plan is subject to (i) each individual employee’s compliance with the Company’s mission and values, its code of ethics and its policies and procedures, including, without limitation, the Corporate Policies and Procedures and employee handbook (collectively, “Company Policies”), and (ii) the Clawback and Recoupment Policy attached as Appendix G.

Each employee that is eligible and receives a Bonus or Spot Bonus will be liable for any and all federal, state, provincial, local or foreign taxes, pension plan contributions, employment insurance premiums, social insurance contributions, amounts payable to a governmental and/or regulatory body in the employee’s country and other levies of any kind required by applicable laws to be deducted or withheld with respect to any such award (collectively, the “Withholding Taxes”). The Company will have the right to deduct and withhold all required Withholding Taxes from any payment or other consideration deliverable to an employee pursuant to any such payment. All awards under the Plan are intended to be exempt from Section 409A of the Internal Revenue Code of 1986, as amended, and shall be construed and interpreted in accordance with such intent.

Participation in the Plan does not confer upon any employee any right to continue in the employ of the Company or its subsidiaries, nor interfere in any way with the right of the Company and its subsidiaries to terminate any employee’s employment at any time.  The Company and its subsidiaries are under no obligation to continue the Plan in future years.  

The Compensation Committee may at any time, or from time to time, in its sole and absolute discretion, (a) amend, alter or modify the provisions of this Plan, (b) terminate this Plan, or (c) terminate the participation of an employee or group of employees in this Plan; provided, however, that in the event of the termination of the Plan or a termination of participation, the Compensation Committee, in its sole and absolute discretion, may determine that a prorated award is payable to employees who were participants in this Plan under such terms and conditions as established by the Compensation Committee.

Notwithstanding anything herein to the contrary, whether or not any payment or award is authorized, earned or paid under the Plan will be determined by the Compensation Committee in its sole and absolute discretion, and no such payment or award shall be earned, nor shall any right to any such payment or award exist or accrue, unless, among other factors, such payment or award has been authorized by the Compensation Committee in its sole and absolute discretion, and actually paid to the employee.   In addition, whether or not any payment or award is authorized, earned or paid pursuant to the Plan is without regard to whether any of the individual performance metrics, financial performance targets and/or goals, or any other benchmarks, targets, personal goals or criteria set forth in the Plan are met, not met, exceeded or not exceeded.
No employee, beneficiary or other person shall have any right, title or interest in any amount awarded under the Plan prior to the payment of such award to him or her.  An employee’s rights to a payment under the Plan are no greater than those of unsecured general creditors of the Company or its subsidiaries.
By participating in the Plan, each employee consents to the holding and processing of personal information provided by such employee to the employer, any affiliate of the employer, trustee or third party service provider, for all purposes relating to the operation of the Plan.  Consents include, but are not limited to: (i) administering and maintaining employee records; (ii) providing information to the employer, its affiliates, trustees of any employee benefit trust, registrars, brokers or third party administrators of the Plan; (iii) providing information to future purchasers or merger partners of the employer or any of its affiliates, or the business in which the employee works; and (iv) to the extent not prohibited by applicable law, transferring information about the employee to any country or territory that may not provide the same protection for the information as the employee’s home country.
The Plan is governed by the laws of the State of New York and as such will be construed under and in accordance with the laws of the State of New York without regard to conflicts of law.

Appendix A 
Compensation Structure: Base Pay & Incentive Plans

[Table Redacted]

Individual Performance Measures
Supervisor’s assessment of employee’s performance will be based on the following categories:
		
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	Interpersonal effectiveness

		
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	Business conduct

		
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	Professional and technical development

		
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	Leadership 

		
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	Achievement of goals

		
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	Results orientation

The assessment is discretionary and based on a wide range of considerations which often change over the course of the year.

Appendix B
Bonus Payout and Company Performance Calculations

               Bonus Payout Calculation:

               **Company Performance Multiplier:

Appendix C
Bonus Payout Examples

Appendix D
CVR Refining, LP

Eligibility
Non-union direct employees of Company, its general partner and their respective subsidiaries, including Commercial Executives, Pipeline, Trucking, Marketing, Company Controller, Crude, Planning, Wholesale, Wynnewood and Coffeyville refineries and Capital Projects.

Appendix E
CVR Refining, LP
Bonus Payout Measures

Environmental Health & Safety (EH&S) Measures (25%)
Three measures evenly weighted (33-1/3% each): Total Recordable Incident Rate (TRIR), Process Safety Tier I Incident Rate (PSIR), and Environmental Events (EE):
    
	
			
	Percentage Change(over the prior year)
	 
	Bonus Achievement

	Increase in Incident Rate or Incidents
	 
	Zero

	0%
	 
	50% of Target Percentage (Threshold)

	Decrease > 0% and < 3%
	 
	Linear Interpolation between Threshold and Target

	Decrease of 3%
	 
	Target Percentage

	Decrease > 3% and < 10%
	 
	Linear Interpolation between Target and Maximum

	Decrease of 10% or more, or if TRIR is maintained at or below 1.0, PSIR at or below 0.2 and EE at or below 20
	 
	150% of Target (Maximum)

Financial Measures (75%) 
Four measures evenly weighted (25% each):

	
			
	Reliability
	 
	Bonus Achievement

	Greater than 8.0%
	 
	Zero

	8.00%
	 
	50% of Target Percentage (Threshold)

	6.01% to 7.99%
	 
	Linear Interpolation between Threshold and Target

	6.00%
	 
	Target Percentage

	5.0% to 5.99%
	 
	Linear Interpolation between Target and Maximum

	Less than 5.0%
	 
	150% of Target (Maximum)

	
			
	Equipment Utilization
	 
	Bonus Achievement

	Less than 95%
	 
	Zero

	95%
	 
	50% of Target Percentage (Threshold)

	95.01% to 99.99%
	 
	Linear Interpolation between Threshold and Target

	100%
	 
	Target Percentage

	100.01% to 104.99%
	 
	Linear Interpolation between Target and Maximum

	Greater than 105%
	 
	150% of Target (Maximum)

	
			
	Operating Expense
	 
	Bonus Achievement

	Greater than 103.0%
	 
	Zero

	103%
	 
	50% of Target Percentage (Threshold)

	100.1% to 102.99%
	 
	Linear Interpolation between Threshold and Target

	100%
	 
	Target Percentage

	95.0% to 99.99%
	 
	Linear Interpolation between Target and Maximum

	Less than 95%
	 
	150% of Target (Maximum)

	CVRR ROCE (Ranking vs. Peer Group*)
	 
	Bonus Achievement

	First (highest)
	 
	150% of Target (Maximum)

	Second
	 
	125% of Target Percentage

	Third
	 
	112.5% of Target Percentage

	Fourth
	 
	Target Percentage (100%)

	Fifth
	 
	75% of Target Percentage

	Six
	 
	50% of Target Percentage (Minimum)

	Seventh
	 
	Zero

Performance measures subject to peer group ranking will be based on LTM data as of September 30 of the Performance Period.

*The Refining Industry peer group will include Valero, Marathon, PBF Energy, Delek, Holly Frontier and Par Pacific.

Appendix F
Definitions

“Adjusted EBITDA” for the Company means earnings before interest, taxes, depreciation and amortization, and adjusted for first-in, first-out accounting impacts, unrealized gains and losses on derivative transactions, turnaround expenses, loss on extinguishment of debt, asset impairment charges, non-controlling interest and board-directed actions.

“Adjusted EBITDA Threshold” means actual capital expenditures plus reserves for major scheduled turnaround expenses plus interest on debt for the given Performance Period. In Performance Periods that include a turnaround, Adjusted EBITDA Threshold will equal capital expenditures plus total turnaround spend less established turnaround reserves (excluding reserves added in the current period) plus interest on debt. [Redacted]

“Chief Executive” means the President and Chief Executive Officer of the Company.

“Eligible Compensation” means (i) for eligible exempt employees, such employee’s base salary at the time the Bonus or Spot Bonus is determined (prorated for time in an eligible position), and (ii) for eligible non-exempt and non-union hourly employees, such employees’ eligible wages for the applicable year as determined by the Company to be required by law. 

“Environmental Events” (“EE”) means the total number of reportable quantities and water deviations.  
		
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	 Reportable quantities are releases of substances during a 24-hour period that exceed a federal, state or local reporting threshold.

		
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	Reportable quantity is an event or contemporaneous combination of events during at 24-hour period that results in a release that exceeds a reportable quantity or quantities of a EPCRA/CERCLA compound as defined in the EPA List of Lists or a release that exceeds any other federal, state or local reporting threshold.  Federally permitted releases and continuous releases defined in 40 CFR §302.6 and §302.8 are not considered reportable quantities under this measure.

		
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	A reportable quantity is counted by event or contemporaneous combination of events, not by the number of individual reports that are filed or number of compounds which exceed their reportable quantity.  Events are considered contemporaneous if they occur within 24-hours or when a common cause results in one or more reportable quantities during contiguous or overlapping 24-hour periods.

		
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	Water deviations are exceedances of a NPDES-based permit limit, wastewater bypasses and sheens to water of the United States.  

		
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	The number of deviations is based on the number of individual permit limits exceeded irrespective of the number of causal events attributed to the deviation.  However, a continuance of an ongoing permit limit deviation would not be double-counted if it were contemporaneous with a prior deviation and/or event.  

		
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	Oil sheens and reportable quantities to water are only counted once as a water deviation environmental event.

A single event that results in multiple reportable quantities and/or when a water deviation is also a regulatory reportable quantity is not “double-counted” and will only be considered one Environmental Event.
“Executive Officer” of the Company means an “executive officer” as that term is defined in Rule 3b-7 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or an “officer” of the Company for purposes of Section 16 of the Exchange Act.

“Equipment Utilization” means actual throughput for the Performance Period divided by the planned throughput for the Performance Period, as adjusted at the discretion of the Compensation Committee for events or downtime caused by third parties.  Planned throughput is reflected in the Company’s annual volumetric plan. Monthly targets may be adjusted on a month by month basis to optimize production for which there is an economic incentive to do so during the given period. In such cases, the annual volumetric plan will be adjusted for the purposes of Bonus calculations with the new targets in place of the original targets.

“Operating Expense” means measurement of actual controllable and fixed operating costs divided by budgeted amounts. For purposes of calculating the Bonus, budgeted amounts are subject to revision by the Board in its discretion based on changes in business conditions or configuration of the business (e.g., items such as acquisitions or divestitures, unusual or non-recurring charges and changes in staffing relating to changed strategy approved by the Board will be considered as items for potential adjustment).  

“Process Safety Incident Rate” (“PSIR”) means a standardized measure of process safety performance for the number of process safety tier 1 events per 100 full-time equivalent employees, as defined in the recommended practice for process safety performance indicators, ANSI/API RP 754.   
A process safety tier 1 event is an unplanned or uncontrolled loss of primary containment of any material, including non-toxic and non-flammable materials, from a process that results in one or more consequences, including: 
		
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	an employee, contractor or subcontractor “days away from work” injury and/or fatality;

		
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	a hospital admission and/or fatality or a third-party;

		
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	an officially declared community evacuation or community shelter-in-place;

		
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	a fire or explosion resulting in greater than or equal to $25,000 of direct cost to the company;

		
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	an officially declared community evacuation or community shelter-in-place;

		
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	a pressure relief device (PRD) discharge to atmosphere whether directly or via a downstream destructive device that results in one or more of four defined consequences and a PRD discharge quantity greater than defined threshold quantities in a one-hour period; or,

		
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	a release of material greater than defined threshold quantities described in any one-hour period.

“Reliability” means Lost Profit Opportunity (“LPO”), defined as foregone gross margin that results from operational variance due to factors within the Company’s control, specifically including human and equipment performance, divided by the sum of actual gross margin plus LPO.

“Return on Capital Employed” (“ROCE”) means operating income before depreciation and amortization (excluding asset impairments, non-cash asset write-downs and inventory valuation gains or losses) divided by average Capital Employed during the Period (averages calculated using 5-quarter end balances for the measurement period). 

“Capital Employed” means the total assets, less current liabilities (adjusted for any asset or inventory valuations imputed on operating income).

“Total Recordable Injury Rate” (“TRIR”) means a standardized measure of safety performance for the number of work-related injuries per 100 full-time equivalent employees, as defined by OSHA.    
“Throughput” means total crude oil and other feedstocks charged to the refinery including isobutane, normal butane, natural gasoline, gas oil, biodiesel and ethanol used for blending.

Appendix G 
Clawback and Recoupment Policy

This Clawback and Recoupment Policy applies to each Bonus and Spot Bonus (for purposes of this Plan, an “Award”).   

If the Compensation Committee in its sole and absolute discretion, determines that (i) there has been misconduct or a gross dereliction of duty resulting in either a violation of law or Company Policy, that, in either case, causes significant financial or reputational harm to the Company (or any of its affiliates), and that an employee committed the misconduct or gross dereliction of duty, or failed in his or her responsibility to manage or monitor the applicable conduct or risk; (ii) an employee has committed an immoral act which is reasonably likely to impair the reputation of the Company (or any of its affiliates); (iii) an employee committed, or was indicted for, a felony or any crime involving fraud or embezzlement or dishonesty or was convicted of, or entered a plea of nolo contendere to a misdemeanor (other than a traffic violation) punishable by imprisonment under federal, state or local law; (iv) an employee violated any securities or employment laws or regulations; (v) an employee materially breached a Company Policy or any non-compete and/or non-solicitation clause included in an agreement or offer letter with such employee’s employer; (vi) an employee embezzled and/or misappropriated any property of the Company (or any of its affiliates) or committed any act involving fraud with respect to the Company (or any of its affiliates); or (vii) an employee engaged in conduct (including by omission) or an event or condition has occurred, which, in each case, would have given the Company or its subsidiaries the right to terminate the employee’s employment for Cause (as defined herein), then, to the extent not prohibited by applicable law, such Compensation Committee, in its sole and absolute discretion, may cancel, declare forfeited, or rescind such Award, or may seek reimbursement from such employee (and such employee will be obligated to repay) all or any portion of any payments made to such employee in respect of such Award.

If the Compensation Committee determines, in its sole and absolute discretion, that calculations underlying the performance measures and targets, including but not limited to mistakes in the Company’s financial statements, were incorrect, then such Compensation Committee may, in its sole and absolute discretion, seek to recover the amount of any payment made to employees that exceeded the amount that would have been paid based on the corrected calculations.

To the extent not prohibited by applicable law, if an employee is an officer, or, if applicable, has otherwise been designated by the Board of the Company as an Executive Officer, the Board may seek reimbursement of any payment made to such employee in respect of an Award in the event of a restatement of such Company’s (or any of its subsidiaries’) financial results (occurring due to material noncompliance with any financial reporting requirements under applicable securities laws) that reduced a previously granted payment made to such employee in respect of an Award.  In that event, the Compensation Committee may, in its sole and absolute discretion, seek to recover the amount of any such payment made to the employee that exceeded the amount that would have been paid based on the restated financial results.

If the Company subsequently determines that it is required by law to apply a “clawback” or alternate recoupment provision to an Award, under the Dodd-Frank Wall Street Reform and Consumer Protection Act or otherwise, then such clawback or recoupment provision also shall apply to such Award, as if it had been included on the effective date of such Award.

To the extent not prohibited under applicable law, the Company (or any of its subsidiaries) (as applicable), in its sole and absolute discretion, will have the right to set off (or cause to be set off) any amounts otherwise due to employee from such Company or a subsidiary in satisfaction of any repayment obligation of such employee hereunder, provided that any such amounts are exempt from, or set off in a manner intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended.

For the avoidance of doubt, the Company’s and its subsidiaries’ rights under this Plan will apply to employees, without regard to whether any such employee is currently providing, or previously provided, services to the Company or its subsidiary as an employee.

“Cause” for purposes of any Award means such employee’s (i) refusal or neglect to perform substantially his or her employment-related duties or services, (ii) personal dishonesty, incompetence, willful misconduct or breach of fiduciary duty, (iii) indictment for, conviction of or entering a plea of guilty or nolo contendere to a crime constituting a felony or his or her willful violation of any applicable law (other than a traffic violation or other offense or violation outside of the course of employment or services to the Company or its affiliates which in no way adversely affects the Company and its affiliates or their reputation or the ability of the employee to perform his or her employment-related duties or services or to represent the Company or any affiliate of the Company that employs such employee or to which the employee performs services), (iv) failure to reasonably cooperate, following a request to do so by the Company, in any internal or governmental investigation of the Company or any of its affiliates or (v) material breach of any written covenant or agreement with the Company or any of its affiliates not to disclose any information pertaining to the Company or such affiliate or not to compete or interfere with the Company or such affiliate; provided that, in the case of any employee who, as of the date of determination, is party to an effective services, severance or employment agreement with the Company or any affiliate, “Cause” will have the meaning, if any, specified in such agreement.

CVRR Bonus Plan Approved March 19, 2019        Page 1Exhibit 10.1 - Form of 2019 Performance Share Unit Agreement

		

			Exhibit 10.1

		

		

			 

		

		
			Performance Share Agreement
		

			
					
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						Name of Participant:

					
					
						Participant Name

				
	
					
						Target Number of Performance Shares:

					
					
						# of Shares

				
	
					
						Grant Date:

					
					
						February 8, 2019

				
	
					
						Performance Period:

					
					
						January 1, 2019 – December 31, 2021

				

		
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			This Performance Share Agreement (“Agreement”) evidences the grant to the Participant by Chipotle Mexican Grill, Inc. (the “Company”) of the right to receive shares of Common Stock of the Company, $.01 par value per share (“Common Stock”), on the terms and conditions provided for herein pursuant to the Amended and Restated Chipotle Mexican Grill, Inc. 2011 Stock Incentive Plan (the “Plan”).  Except as specifically set forth herein, this Agreement and the rights granted hereunder are expressly subject to all of the terms, definitions and provisions of the Plan as it may be amended and restated from time to time. Capitalized terms used in this Agreement and not defined herein shall have the meanings attributed to them in the Plan.
		

		
			1.    Grant of Performance Shares.  Subject to the terms and provisions of this Agreement and the Plan, the Company hereby grants to Participant the right to be issued shares of Common Stock as provided in this Agreement, including Appendix A hereto (the “Performance Shares”), subject to the following conditions:
		

		
			(a)    Certification by the Committee of the extent to which the Performance Goals set forth on Appendix A have been achieved;
		

		
			(b)    Participant being continuously employed (subject to the provisions of Section 2) with the Company (as defined in the Plan) from the Grant Date through the final day of the Performance Period; and
		

		
			(c)    The satisfaction or occurrence of any additional conditions to vesting set forth on Appendix A.
		

		
			The date on which all of the conditions set forth above are satisfied is the “Vesting Date,” and the Company will issue one share of Common Stock for each Performance Share earned and vested to the Participant on the March 15th immediately following the Performance Period, subject to (i) earlier payment in connection with a Change in Control under Section 3(c) or to the extent administratively practicable following the Vesting Date, or (ii) later payment as permitted without resulting in tax under Section 409A of the Code (the date of such issuance of shares following the Vesting Date, the “Payout Date”).
		

		
			This Agreement represents the Company’s unfunded and unsecured promise to issue Common Stock at a future date, subject to the terms of this Agreement and the Plan.  Participant has no rights under this Agreement other than the rights of a general unsecured creditor of the Company.
		

		

		

		 

		

			 

		

 

		
		

		
			Subject to the satisfaction of any tax withholding obligations described in Section 6 below, Participant may elect to defer the receipt of any of the shares of Common Stock underlying the Performance Shares by submitting to the Company a deferral election in the form provided by the Company.  In the event Participant intends to defer the receipt of Performance Shares, Participant must submit to the Company a completed deferral election form no later than the Final Election Date (as defined below). By submitting such deferral election, Participant represents that he/she understands the effect of any such deferral under relevant federal, state and local tax and social security laws, including, but not limited to, the fact that social security contributions may be due upon the Vesting Date notwithstanding the deferral election.  Any deferral election may be amended or terminated prior to the Final Election Date.  A deferral election shall become irrevocable on the Final Election Date and any deferral election or revision of a deferral election submitted after the Final Election Date shall be void and of no force or effect.  The “Final Election Date” shall be the last business day occurring on or before the date that is six months prior to the final day of the Performance Period, provided that in no circumstances will the Final Election Date be later than the date Participant ceases to provide services to the Company or the date that the making of such election causes the Performance Shares to become subject to the excise tax pursuant to Code Section 409A.
		

		
			2.    Termination of Employment.  Subject to the provisions that follow in this Section 2 and Section 3, if at any time prior to the expiration of the Performance Period Participant’s service with the Company terminates, then notwithstanding any contrary provision of this Agreement, the Performance Shares subject to this Agreement will be forfeited and cancelled automatically as of the date of such termination, and no shares of Common Stock will be issued hereunder.
		

		
			Notwithstanding the foregoing or any contrary provision in the Plan, if Participant’s employment terminates prior to the Vesting Date as a result of Participant’s death, or the Committee determines that such termination is in connection with Participant’s Retirement (as defined below), or is as a result of Participant’s medically diagnosed permanent physical or mental inability to perform his or her job duties, then the award evidenced by this Agreement will continue in force following the date of such termination, and, subject to any then effective deferral election, a pro-rata portion of the shares of Common Stock underlying the Performance Shares will be issued to Participant (or if applicable his or her estate, heirs or beneficiaries) on the Payout Date, in an amount reflecting the period of Participant’s continued service to the Company from and after the Grant Date through the date of termination of Participant’s service.  The Committee will determine the pro-rata portion of the Performance Shares to be paid out under the following formula:  Total number of shares of Common Stock issuable on account of attaining the Performance Goals based upon the actual performance results during the Performance Period multiplied by a fraction, the numerator of which is the number of days of service following the Grant Date and occurring during the Performance Period and the denominator of which is the total number of days following the Grant Date through the final day of the Performance Period.
		

		
			For purposes of this Section 2, “Retirement” means that a Participant having a combined Age and Years of Service (as those terms are defined below) of at least 70 (a) has given the Chief Executive Officer of the Company or his or her designee at least six months prior written notice of such Participant’s retirement; (b) has signed and delivered to the Company an agreement 
		

		 

		

			2

		

		

			 

		

 

		providing for such restrictive covenants, for a period of two years after such retirement, as may be determined from time to time by the Committee, based on individual facts and circumstances, to be reasonably necessary to protect the Company’s interests, (c) has signed and delivered to the Company, within 21 days of the Executive’s date of employment termination (or such later time as required under applicable law) a general release agreement of claims against the Company and its affiliates in a form reasonably acceptable to the Committee, which is not later revoked, and (d) voluntarily terminates from service with the Company.  The term “Age” of a Participant means (as of a particular date of determination), the Participant’s age on that date in whole years and any fractions thereof, and the term “Years of Service” means the number of years and fractions thereof during the period beginning on a Participant’s most recent commencement of employment with the Company or a subsidiary or parent of the Company (or such other Company-associated entity as the Committee may determine from time to time) and ending on the date of such Participant’s termination of service with the Company or a subsidiary or parent of the Company.  The Participant’s refusal to meet any of the conditions set forth in (a), (b), (c) or (d) above, or breach of any agreement entered into pursuant to (b) or (c) above, shall constitute a waiver by the Participant of the benefits attributable to Retirement under this Agreement.
		

		
			Notwithstanding the foregoing, if at any time prior to the Payout Date Participant’s service with the Company terminates for Cause, then notwithstanding any contrary provision of this Agreement, the Performance Shares subject to this Agreement will be forfeited and cancelled automatically as of the date of such termination, and no shares of Common Stock will be issued hereunder.
		

		
			3.    Change in Control.
		

		
			(a)    In the event of a Change in Control that does not also constitute a “change in the ownership or effective control of a corporation, or a change in the ownership of a substantial portion of the assets of a corporation” under Treas. Reg. § 1.409A-3(i)(5), then (i) the Performance Shares subject to this Agreement shall remain outstanding, (ii) the Performance Shares shall continue to be subject to the terms of this Agreement, and (iii) the provisions of the first  paragraph of Section 7(b) of the Plan (regarding rights upon a Qualifying Termination) shall not apply to such Performance Shares.
		

		
			(b)    In the event of a Change in Control that is also a “change in the effective control of a corporation” under Treas. Reg. § 1.409A-3(i)(5)(vi), then  (i) the Performance Shares subject to this Agreement shall remain outstanding, (ii) the Performance Shares shall continue to be subject to the terms of this Agreement, (iii) the provisions of the first paragraph of Section 7(b) of the Plan shall apply to such Performance Shares, and (iv) such Performance Shares shall be paid out upon the Payout Date based upon the actual level of performance.
		

		
			(c)    In the event of a Change in Control that is also a “change in the ownership of a corporation” under Treas. Reg. § 1.409A-3(i)(5)(v) or a “change in the ownership of a substantial portion of a corporation’s assets” under Treas. Reg. § 1.409A-3(i)(5)(vii) (a “Special CIC”), the Performance Shares subject to 
		

		 

		

			3

		

		

			 

		

 

		this Agreement shall immediately vest and the Participant shall receive, within 10 days of such Special CIC, the consideration (including all stock, other securities or assets, including cash) payable in respect of the Target Number of Performance Shares (or, if greater, the number of Performance Shares based on actual performance from the beginning of the Performance Period until the Special CIC, as reasonably determined by the Committee based on available information) as if they were vested, issued and outstanding at the time of such Special CIC; provided, however, that with respect to Performance Shares that are otherwise subject to a “substantial risk of forfeiture” under Treas. Reg. § 1.409A-1(d) and to the extent permitted by Treas. Reg. § 1.409-3, the Committee may arrange for the substitution for the Performance Shares with the grant of a replacement award (the “Replacement Award”) to Participant of shares of restricted stock of the surviving or successor entity (or the ultimate parent thereof) in such Change in Control, but only if all of the following criteria are met:
		

		
			(i)    Such Replacement Award shall consist of securities listed for trading following such Change in Control on a national securities exchange;
		

		
			(ii)    Such Replacement Award shall have a value as of the date of such Change in Control equal to the value of the Target Number of Performance Shares (or, if greater, the number of Performance Shares based on actual performance from the beginning of the Performance Period until the Special CIC, as reasonably determined by the Committee based on available information), calculated as if the Performance Shares were exchanged for the consideration (including all stock, other securities or assets, including cash) payable for shares of Common Stock in such Change in Control transaction;
		

		
			(iii)    Such Replacement Award shall become vested and the securities underlying the Replacement Award shall be issued to the Participant on the second anniversary of the commencement of the Performance Period or if such Change in Control occurs following that date shall become vested and shall be issued on third anniversary of the commencement of the Performance Period, in either case subject to Participant’s continued employment with the surviving or successor entity (or a direct or indirect subsidiary thereof) through such date, provided, however, that such Replacement Award will vest immediately upon and the securities underlying the Replacement Award shall be issued within 60 days after the date that (i) Participant’s employment is terminated by the surviving or successor entity Without Cause, (ii) Participant’s employment is terminated  for Good Reason, (iii) Participant’s death or (iv) Participant’s medically diagnosed permanent physical or mental inability to perform his or her job duties;
		

		
			(iv)    Notwithstanding Section 3(c), such Replacement Award shall vest immediately prior to and the securities underlying the 
		

		 

		

			4

		

		

			 

		

 

		Replacement Award shall be issued to Participant upon (A) any transaction with respect to the surviving or successor entity (or parent or subsidiary company thereof) of substantially similar character to a Change in Control, or (B) the securities constituting such Replacement Award ceasing to be listed on a national securities exchange, in each case so long as Participant remains continuously employed until such time; and 
		

		
			(v)    The Replacement Award or the right to such Replacement Award does not cause the Performance Shares to become subject to tax under Code Section 409A.  
		

		
			Upon such substitution the Performance Shares shall terminate and be of no further force and effect.
		

		
			4.    Rights as Shareholder.  Participant shall not have any of the rights of a shareholder with respect to the Performance Shares except to the extent that shares of Common Stock on account of such Performance Shares are issued to Participant in accordance with the terms and conditions of this Agreement and the Plan.
		

		
			5.    No Right to Continued Employment.  Nothing contained in this Agreement shall be deemed to grant Participant any right to continue in the employ of the Company for any period of time or to any right to continue his or her present or any other rate of compensation, nor shall this Agreement be construed as giving Participant, Participant’s beneficiaries or any other person any equity or interests of any kind in the assets of the Company or creating a trust of any kind or a fiduciary relationship of any kind between the Company and any such person.
		

		
			6.    Withholding Taxes.  No later than the date as of which an amount first becomes includible in the gross income of Participant for federal income or employment tax purposes with respect to the Performance Shares, Participant shall pay to the Company or make arrangements satisfactory to the Committee regarding the payment of, any federal, state, local or foreign taxes of any kind required by law to be withheld with respect to such amount.   To the extent approved in writing by the Committee, a Participant shall have the right to direct the Company to satisfy the minimum amount (or an amount up to a Participant’s highest marginal tax rate as may be permitted under the Plan from time to time provided such withholding does not trigger liability accounting under FASB ASC Topic 718 or its successor) required for federal, state and local tax withholding with Shares, including without limitation Shares otherwise delivered upon exercise of the SARs.  The obligations of the Company under the Plan and this Agreement shall be conditional on such payment, and the Company shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to the Participant.
		

		
			7.    No Fractional Shares.  If any terms of this Agreement call for payment of a fractional Performance Share, the number of Performance Shares issuable hereunder will be rounded down to the nearest whole number.
		

		
			8.    Non-Transferability of Award.  The Common Stock underlying the Performance Shares shall not be assignable or transferable by Participant prior to their vesting and issuance in accordance with this Agreement, except by will or by the laws of descent and distribution. In 
		

		 

		

			5

		

		

			 

		

 

		addition, no Performance Shares shall be subject to attachment, execution or other similar process prior to vesting.
		

		
			9.    Applicability of the Plan.  Except as specifically set forth herein, the Performance Shares are subject to all provisions of the Plan and all determinations of the Committee made in accordance with the terms of the Plan. By executing this Agreement, the Participant expressly acknowledges (i) receipt of the Plan and any current Plan prospectus and (ii) the applicability of the provisions of the Plan to the Performance Shares.
		

		
			10.    Additional Conditions to Issuance of Performance Shares.  Notwithstanding the occurrence of the Vesting Date or Payout Date, the Company shall not be required to issue any Common Stock underlying the Performance Shares hereunder so long as the Company reasonably anticipates that such issuance will violate federal or state securities law or other applicable law; provided however, that in such event the Company shall issue such Performance Shares at the earliest possible date at which the Company reasonably anticipates that the issuance of the shares will not cause such violation.
		

		
			11.    Modification; Waiver.  Except as provided in the Plan or this Agreement, no provision of this Agreement may be amended, modified, or waived unless such amendment or modification is agreed to in writing and signed by Participant and by a duly authorized officer of the Company, and such waiver is set forth in writing and signed by the party to be charged, provided that any change that is advantageous to Participant may be made by the Committee without Participant’s consent or written signature or acknowledgement. No waiver by either party hereto at any time of any breach by the other party hereto of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. Participant acknowledges and agrees that the Committee has the right to amend this Agreement in whole or in part from time-to-time if the Committee believes, in its sole and absolute discretion, such amendment is required or appropriate in order to conform the award evidenced hereby to, or otherwise satisfy any legal requirement (including without limitation the provisions of Section 409A of the Code). Such amendments may be made retroactively or prospectively and without the approval or consent of Participant to the extent permitted by applicable law, provided that the Committee shall not have any such authority to the extent that the grant or exercise of such authority would cause any tax to become due under Section 409A of the Code.
		

		
			12.    Notices.  Except as the Committee may otherwise prescribe or allow in connection with communications procedures developed in coordination with any third party administrator engaged by the Company, all notices, including notices of exercise, requests, demands or other communications required or permitted with respect to the Plan, shall be in writing addressed or delivered to the parties. Such communications shall be deemed to have been duly given to any party when delivered by hand, by messenger, by a nationally recognized overnight delivery company, by facsimile, or by first-class mail, postage prepaid and return receipt requested, in each case to the applicable addresses set forth below: 
		

		

		

		 

		

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		﻿
		

		
			If to Participant:
		

		
			to Participant’s most recent address on the records of the Company
		

		
			If to the Company:
		

		
			Chipotle Mexican Grill, Inc.
610 Newport Center Drive, Suite 1300
Newport Beach, CA 92660
Attn: Sr. Director – Total Rewards
		

		
			(or to such other address as the party in question shall from time to time designate by written notice to the other parties).
		

		
			13.    Compensation Recovery.  The Company may cancel, forfeit or recoup any rights or benefits of, or payments to, the Participant hereunder, including but not limited to any Shares issued by the Company following vesting of the Performance Shares under this Agreement or the proceeds from the sale of any such Shares, under any future compensation recovery policy that it may establish and maintain from time to time, to meet listing requirements that may be imposed in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act or otherwise.  The Company shall delay the exercise of its rights under this Section for the period as may be required to preserve equity accounting treatment.
		

		
			14.    Governing Law.  Except to the extent that provisions of the Plan are governed by applicable provisions of the Code or other substantive provisions of federal law, this Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to the principles of conflicts of law thereof.
		

		
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						CHIPOTLE MEXICAN GRILL, INC.

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						By:

					
					
						/s/ Neil Flanzraich

				
	
					
						﻿

					
					
						By:

					
					
						Neil Flanzraich

				
	
					
						﻿

					
					
						 

					
					
						Chairman, Compensation Committee

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Participant Name

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

				

		
			﻿
		

		
			﻿
		

		

		

		 

		

			7

		

		

			 

		

 

		
		

		
			Appendix A to 2019 Performance Share Agreement
		

		
			﻿
		

		
			Name of Participant: Participant Name
		

		
			Performance Criteria 
		

		
			The performance criteria under this Incentive Award shall be 3 Year CRS Growth (for the period from January 1, 2019 to December 31, 2021) and 3 Year Average RCF Margin (for the period from January 1, 2019 to December 31, 2021), as such terms are defined below.
		

		
			Performance Goal Table
		

		
			The number of shares that can be earned under this Incentive Award is equal to the Target Number of Performance Shares multiplied by the percentage determined under the Performance Goal Table set forth below (the “Payout Percentage”).
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						3 Year Average RCF Margin

					
					
						3 Year CRS Growth

				
	
					
						3.50%

					
					
						4.00%

					
					
						4.50%

					
					
						5.00%

					
					
						5.50%

					
					
						6.00%

					
					
						6.50%

					
					
						7.00%

				
	
					
						19.00%

					
					
						0%

					
					
						25%

					
					
						50%

					
					
						75%

					
					
						100%

					
					
						150%

					
					
						150%

					
					
						175%

				
	
					
						20.00%

					
					
						50%

					
					
						75%

					
					
						100%

					
					
						125%

					
					
						150%

					
					
						200%

					
					
						200%

					
					
						250%

				
	
					
						21.00%

					
					
						75%

					
					
						100%

					
					
						125%

					
					
						150%

					
					
						200%

					
					
						250%

					
					
						250%

					
					
						300%

				
	
					
						22.00%

					
					
						75%

					
					
						125%

					
					
						150%

					
					
						200%

					
					
						250%

					
					
						275%

					
					
						300%

					
					
						300%

				

		
			﻿
		

		
			In no event will any Performance Shares be earned under this Appendix A if either (a) the 3  Year Average RCF Margin is less than 19.0%, or (b) 3 Year CRS Growth is less than 3.5%.  In no event may more than 300% of the Target Number of Performance Shares be earned under this Appendix A.  If the level of performance for either 3 Year CRS Growth, 3 Year Average RCF Margin or both falls between two stated performance levels in the Performance Goal Table, the Payout Percentage shall be determined under the heading “Interpolation” below.
		

		
			3 Year CRS Growth
		

		
			For purposes of the Performance Goal Table under this Appendix A, “3-Year CRS Growth” shall be determined with respect to the three year period beginning on January 1, 2019 using the following formula:
		

		
			﻿
		

		
			[(1+X)*(1+Y)*(1+Z)]^(1/3)-1
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			Where:
		

		

		

		 

		

			8

		

		

			 

		

 

		
		

		
			“X” = the annual percentage change in the Comparable Restaurant Sales for the fiscal year ending December 31, 2019
		

		
			“Y” = the annual percentage change in Comparable Restaurant Sales for the fiscal year ending December 31, 2020
		

		
			“Z” = the annual percentage change in Comparable Restaurant Sales for the fiscal year ending December 31, 2021
		

		
			﻿
		

		
			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 and/or Pizzeria Locale brands by the Company or its direct or indirect Subsidiaries, beginning in such restaurant’s 13th full calendar month of operations.
		

		
			﻿
		

		
			“CRS” or “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. 
		

		
			﻿
		

		
			3 Year Average RCF Margin
		

		
			﻿
		

		
			For purposes of the Performance Goal Table under this Appendix A, “3 Year Average RCF Margin” shall be determined under the following formula:
		

		
			﻿
		

		
			X + Y + Z
		

		
			3
		

		
			Where:
		

		
			﻿
		

		
			“X” = the Company’s RCF Margin from restaurant operations for the fiscal year ending December 31, 2019
		

		
			“Y” = the Company’s RCF Margin from restaurant operations for the fiscal year ending December 31, 2020.
		

		
			“Z” = the Company’s RCF Margin from restaurant operations for the fiscal year ending December 31, 2021.
		

		
			﻿
		

		
			“RCF Margin” represents the Company’s total revenue less restaurant operating costs (exclusive of depreciation and amortization), expressed as a percentage of the Company’s total revenue, for the applicable Company fiscal year.  RCF Margin shall be determined in accordance with generally accepted accounting principles as in effect on the first day of the applicable Performance Period.
		

		
			﻿
		

		
			Interpolation 
		

		
			The following rules shall be used to determine the Payout Percentage when the level of performance for either 3 Year CRS Growth, 3 Year Average RCF Margin or both falls between two stated performance levels in the Performance Goal Table:
		

		

		

		 

		

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		(1)    Determine what the Payout Percentage would have been without interpolation based on the highest actual results achieved and reflected in the Performance Goal Table for 3 Year CRS Growth and 3 Year Average RCF Margin.  For example, assume that 3 Year Average RCF Margin is 19.25% and 3-Year CRS Growth is 3.75%.  The Payout Percentage with no interpolation would be zero, as the highest achieved level of performance under the Performance Goal Table is 19% for 3 Year Average RCF Margin and 3.5% for 3 Year CRS Growth (with respect to each Performance Criteria, the “Base Achieved Level”).
		

		
			(2)    Calculate the CRS Adjustment Factor as follows: 
		

		
			(a)    Determine what the Payout Percentage would have been had positive results in excess of the Base Achieved Level for 3 Year CRS Growth been rounded up to the next highest level of stated performance in the Performance Goal Table (the “CRS Rounded Up Level”).  In the example noted in paragraph (1) above, the CRS Rounded Up Level would be 4.0% for 3 Year CRS Growth (3.75% rounded up to 4.0%), and the Payout Percentage based on the CRS Rounded Up Level would be 25% under the Performance Goal Table.
		

		
			(b)    Determine, as a percentage, the extent to which the Company achieved results for 3 Year CRS Growth greater than its Base Achieved Level as compared to its CRS Rounded Up Level, assuming that 3 Year Average RCF Margin equals its Base Achieved Level.  In the example noted in Paragraph (1) above, the extent to which 3 Year CRS Growth was attained between its Base Achieved Level and CRS Rounded Up Level was 50%, assuming a Base Achieved Level of 19% for 3 Year Average RCF Margin (3.75% is halfway in between the Base Achieved Level and the CRS Rounded Up Level).
		

		
			(c)    Calculate the CRS Adjustment Factor by (A) multiplying the difference between the percentages in paragraphs (2)(a) and (1) above by the percentage determined in paragraph (2)(b) above, rounded to the nearest tenth of a percent. In the example noted in paragraph (1) above, the CRS Adjustment Factor is 12.5% (i.e., (25% - 0%) multiplied by 50%).
		

		
			(3)    Calculate the RCF Adjustment Factor as follows:
		

		
			﻿
		

		
			(a)    Determine what the Payout Percentage would have been had positive results in excess of the Base Achieved Level for 3 Year Average RCF Margin been rounded up to the next highest level of stated performance in the Performance Goal Table (the “RCF Rounded Up Level”).  In the example noted in paragraph (1) above, the RCF Rounded Up Level would be 20% for 3 Year Average RCF Margin (19.25% rounded up to 20%), and the Payout Percentage based on the RCF Rounded Up Level would be 50% under the Performance Goal Table.
		

		
			﻿
		

		
			(b)    Determine, as a percentage, the extent to which the Company achieved results for 3 Year Average RCF Margin greater than its Base Achieved Level as compared to its RCF Rounded Up Level, assuming that 3 Year CRS Growth equals its Base Achieved Level.  In the example noted in Paragraph (1) above, the extent to which 3 Year Average RCF Margin was attained between its Base Achieved Level and Rounded Up Level was 25%, assuming a Base Achieved Level of 3.5% for 3 Year CRS Growth.
		

		

		

		 

		

			10

		

		

			 

		

 

		﻿
		

		
			(c)    Calculate the RCF Adjustment Factor by (A) multiplying the difference between the percentages in paragraphs (3)(a) and (1) above by the percentage determined in paragraph (3)(b) above, rounded to the nearest tenth of a percent. In the example noted in paragraph (1) above, the RCF Adjustment Factor is 12.5% (i.e., (50% - 0%) multiplied by 25%).
		

		
			﻿
		

		
			(4)    Calculate the Payout Percentage by adding the CRS Adjustment Factor and the RCF Adjustment Factor to the Base Achieved Level from Paragraph (1).  In the example noted in paragraph (1) above, the interpolated Payout Percentage would be 25% (i.e. 12.5% + 12.5% + 0%).
		

		
			﻿
		

		
			See Appendix B for additional examples of the interpolation method used to determine Payout Percentages when the level of performance for either 3 Year CRS Growth, 3 Year Average RCF Margin or both falls between two stated performance levels in the Performance Goal Table.
		

		
			﻿
		

		
			Other Provisions
		

		
			﻿
		

		
			If the Committee determines after granting an Incentive Award that there has been a change in  law or accounting rules, that impacts CRS and/or Restaurant‐level Cash Flow Margin as set forth in this Appendix A, the Committee shall modify these measures, in whole or in part, as it deems appropriate and equitable in its discretion for such events that were not determinable or considered at the Grant Date.  For the avoidance of doubt, no adjustments otherwise authorized under Section 8 of the Plan shall be made with respect to the Performance Shares except as specifically provided in this Appendix A.
		

		
			﻿
		

		
			The Target Number of Performance Shares 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.  
		

		
			﻿
		

		
			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.
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		

		

		 

		

			11

		

		

			 

		

 

		Appendix B to 2019 Performance Share Agreement
		

		
			﻿
		

		
			Seth forth below are additional examples illustrating the interpolation method used to determine Payout Percentages when the level of performance for either 3 Year CRS Growth, 3 Year Average RCF Margin or both falls between two stated performance levels in the Performance Goal Table in Appendix A. The numbered steps below refer to the steps described in detail in Appendix A, above.
		

		
			﻿
		

		
			Example 1

		

		
			Assume that 3 Year Average RCF Margin is 19.5% and 3-Year CRS Growth is 4.75%.
		

		
			(1)    The Base Achieved Level is 50%.
		

		
			(2)    The CRS Adjustment Factor is calculated as follows: 
		

		
			(a)    The CRS Rounded Up Level would be 5% (4.75% rounded up to 5%), and the Payout Percentage based on the CRS Rounded Up Level would be 75% under the Performance Goal Table.
		

		
			(b)    The percentage reflecting the extent to which 3 Year CRS Growth was attained between its Base Achieved Level and CRS Rounded Up Level is 50% (4.75% is halfway in between 4.5% and 5%).
		

		
			(c)    The CRS Adjustment Factor is 12.5% (i.e., (75% - 50%) multiplied by 50%). 
		

		
			(3)    The RCF Adjustment Factor is calculated as follows:
		

		
			﻿
		

		
			(a)    The RCF Rounded Up Level would be 20% (19.5% rounded up to 20%), and the Payout Percentage based on the RCF Rounded Up Level would be 100% under the Performance Goal Table.
		

		
			﻿
		

		
			(b)    The percentage reflecting the extent to which 3 Year Average RCF Margin was attained between its Base Achieved Level and Rounded Up Level was 50% (19.5% is halfway in between 19% and 20%).
		

		
			﻿
		

		
			(c)    The RCF Adjustment Factor is 25% (i.e., (100% - 50%) multiplied by 50%).
		

		
			﻿
		

		
			(4)    The interpolated Payout Percentage would be 87.5% (i.e. 12.5% + 25% + 50%).
		

		
			﻿
		

		
			﻿
		

		

		

		 

		

			12

		

		

			 

		

 

		Example 2

		

		
			Assume that 3 Year Average RCF Margin is 20.5% and 3-Year CRS Growth is 6.75%.
		

		
			(1)    The Base Achieved Level is 200%.
		

		
			(2)    The CRS Adjustment Factor is calculated as follows: 
		

		
			(a)    The CRS Rounded Up Level would be 7% (6.75% rounded up to 7%), and the Payout Percentage based on the CRS Rounded Up Level would be 250% under the Performance Goal Table.
		

		
			(b)    The percentage reflecting the extent to which 3 Year CRS Growth was attained between its Base Achieved Level and CRS Rounded Up Level is 50% (6.75% is halfway in between 6.5% and 7%).
		

		
			(c)    The CRS Adjustment Factor is 25% (i.e., (250% - 200%) multiplied by 50%). 
		

		
			(3)    The RCF Adjustment Factor is calculated as follows:
		

		
			﻿
		

		
			(a)    The RCF Rounded Up Level would be 21% (20.5% rounded up to 21%), and the Payout Percentage based on the RCF Rounded Up Level would be 250% under the Performance Goal Table.
		

		
			﻿
		

		
			(b)    The percentage reflecting the extent to which 3 Year Average RCF Margin was attained between its Base Achieved Level and Rounded Up Level was 50% (20.5% is halfway in between 20% and 21%).
		

		
			﻿
		

		
			(c)    The RCF Adjustment Factor is 25% (i.e., (250% - 200%) multiplied by 50%).
		

		
			﻿
		

		
			(4)    The interpolated Payout Percentage would be 250% (i.e. 25% + 25% + 200%).
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		

		

		 

		

			13

		

		

			 

		

 

		Example 3

		

		
			Assume that 3 Year Average RCF Margin is 20.9% and 3-Year CRS Growth is 4.9%.
		

		
			(1)    The Base Achieved Level is 100%.
		

		
			(2)    The CRS Adjustment Factor is calculated as follows: 
		

		
			(a)    The CRS Rounded Up Level would be 5% (4.9% rounded up to 5%), and the Payout Percentage based on the CRS Rounded Up Level would be 125% under the Performance Goal Table.
		

		
			(b)    The percentage reflecting the extent to which 3 Year CRS Growth was attained between its Base Achieved Level and CRS Rounded Up Level is 80% (4.9% is four-fifths in between 4.5% and 5%).
		

		
			(c)    The CRS Adjustment Factor is 20% (i.e., (125% - 100%) multiplied by 80%). 
		

		
			(3)    The RCF Adjustment Factor is calculated as follows:
		

		
			﻿
		

		
			(a)    The RCF Rounded Up Level would be 21% (20.9% rounded up to 21%), and the Payout Percentage based on the RCF Rounded Up Level would be 125% under the Performance Goal Table.
		

		
			﻿
		

		
			(b)    The percentage reflecting the extent to which 3 Year Average RCF Margin was attained between its Base Achieved Level and Rounded Up Level was 90% (20.9% is nine-tenths in between 20% and 21%).
		

		
			﻿
		

		
			(c)    The RCF Adjustment Factor is 22.5% (i.e., (125% - 100%) multiplied by 90%).
		

		
			﻿
		

		
			(4)    The interpolated Payout Percentage would be 142.5% (i.e. 20% +22.5% + 100%).
		

		
			﻿
		

		
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			14

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