Incremental Market Value definition
Incremental Market Value means the theoretical market value of new Burger King restaurants developed by Parent, the Company or any of their wholly-owned subsidiaries during the five year period from the Effective Date to the Measurement Date, or during such period as set forth in Section 4(c) or Section 3(e) of this Agreement. For purposes of this Agreement, "theoretical market value" means an amount equal to the "pro forma cash flow" (as reasonably determined by the Board of Directors in their sole discretion using generally accepted accounting principles) of the newly developed Burger King restaurants multiplied by five (5) less all gross capitalized costs (excluding any costs associated with the purchase and improvement of land and the construction of new Burger King restaurants, but including any costs related to furniture, fixtures and equipment) incurred by the Company or the Parent (including gross capitalized internal development costs allocated to such restaurants prior to any deduction for depreciation and amortization of such costs) to develop such restaurants. "Pro forma cash flow" of the newly developed Burger King restaurants is to be based on (i) the actual cash flows of the Burger King restaurants developed by the Executive and open for a period of 12 months or more and (ii) the projected cash flows of the Burger King restaurants developed by the Executive and open for a period of less than 12 months. For purposes of this Agreement, actual cash flow shall be equal to restaurant revenues (defined as all sums charged by such restaurants in their capacity as Burger King franchisees for goods, merchandise or services sold at, from or away from such restaurant, including premiums and telephone orders; provided, however, that such sums shall not include (x) any federal, state, county or city sales or excise tax, or other similar taxes collected by such restaurants, in their capacity from customers based upon sales, (y) cash received as payment in credit transactions where the extension of credit itself has already been included such sums and (z) any amounts received for not-for-profit sales of nonfood items approved for use in connection with promotional campaigns, if any, of Burger King Corporation) less cost of goods sold and all operating expenses, including general and administrative expenses and lease expenses (whether payable to a third party or to the Company, Parent or their respective affiliates, allocable to such restaurant but excluding depreciation and amorti...
Examples of Incremental Market Value in a sentence
In the event the Executive's employment is terminated pursuant to Section 3(b)(i),(ii) or (iv), or Section 3(c)(iii), at any time after the third anniversary of the Effective Date and prior to the Measurement Date, the Executive shall be entitled to receive 3.5% of the Incremental Market Value as of the Termination Date.
The Executive agrees that, other than as set forth in this Section 4(c) and in Section 3(e), above, the Executive shall not be entitled to receive any portion of such long term incentive compensation as measured by the Incremental Market Value and no other form of long term incentive compensation has been agreed upon or promised by the Company other than as set forth in this Agreement.