Document:

MCD-3.31.2013- Ex 10.(K)

Exhibit 10(k)

McDonald's Corporation Cash Performance Unit Program

Section 1: General
 
1.1 The Plan.  McDonald's Corporation, a Delaware corporation (the “Company”) has established this McDonald's Corporation Cash Performance Unit Plan (the “Plan” or “CPUP”) effective as of February 13, 2013.  The purpose of the Plan is to advance the interests of the Company and its shareholders and to provide Participants (as defined below) with the opportunity to earn cash long-term incentive compensation that is linked to the Company's long-term business interests.  This Plan is adopted under the authority of the McDonald's Corporation 2009 Cash Incentive Plan with respect to any Participant who the Compensation Committee of the Board of Directors (the “Committee”) determines that the limitation on deductibility imposed by Section 162(m) of the Internal Revenue Code could apply.  This Plan shall in all respects be interpreted and applied consistently with Section 5.1 below.  
 
1.2 Participants.  Employees at the level of Senior Vice President (or the equivalent level for compensation purposes) and above (“Participants”) are eligible for awards under this Plan.
 
Section 2: Plan Design
 
2.1 Performance Period.  The Plan shall have three-year performance periods commencing on January 1, 2013 and each January 1 thereafter while this Plan is in effect (each a “Performance Period”).
 
2.2 Establishment of Target CPUP Awards.  Each Participant shall be eligible to earn an award under the Plan (an “Award”).  The Committee or its delegee shall establish a target amount, expressed as a specific dollar value, for each Participant's Award for each Performance Period.
 
2.3 Performance Goals.  The final amount of Awards shall be determined following the end of the Performance Period based on the Company's performance during the Performance Period as measured by one or more performance measures (“Performance Goals”) established by the Committee and as determined by the Committee after the end of the Performance Period.  The Performance Goals established by the Committee may be (but need not be) different each Performance Period and different Performance Goals may be applicable to different Participants.  At the time the Committee establishes Performance Goals for a Performance Period, the Committee shall specify whether Company performance must achieve threshold performance with respect to the Performance Goal for there to be any CPUP payout.
  
2.4 Performance Targets.  The Committee shall determine for each Performance Period (i) the applicable Performance Goals and the threshold, target and maximum performance levels of Performance Goals in respect of the Performance Period for Awards under the Plan and (ii) the bases on which the Committee may make adjustments to one or more of the Performance Goals.
 
2.5 Calculation of CPUP Awards.  Following the end of the Performance Period, the Committee shall determine final Awards under the Plan for eligible Participants.  Final Awards shall be determined based on the Company's actual performance during the Performance Period and as specified in the following sentence, except as otherwise expressly provided in Sections 4.1 through 4.5 hereof.  The Award shall be adjusted up or down from the target Award based upon the Company's actual performance during the Performance Period against the Performance Goals previously established by the Committee.  In no event shall a final Award exceed 230% of the target Award.
 
2.6 Payment of Awards.  Awards shall be paid in cash to eligible Participants, as determined by the Committee in accordance with the provisions of this Plan, no later than March 15 of the calendar year following the calendar year in which such Performance Period ended.  Except as expressly provided to the contrary in Sections 4.1 through 4.4 hereof, no Participant shall have the unconditional right to an Award hereunder until the Performance Period has concluded and the exact amount of the Award (if any) has been determined by the Committee.  
 
Section 3: Employment / Change in Status
 
3.1 Employment.  In order to be eligible to receive any Award under the Plan, a Participant must be employed by the Company (or a subsidiary) during the entire Performance Period, except as expressly provided to the contrary in Section 3.2 and/or Sections 4.1 through 4.4 hereof.
 

3.2 Mid-Cycle Entry.  Any Participant who is promoted or hired into a position eligible for Awards under the Plan (an “Eligible Position”) during the first twelve months of a Performance Period is eligible for a pro-rated Award based on the number of months (partial months treated as full months) in the Eligible Position and as set forth in Section 2.5 hereof.  

3.3 Mid-Cycle Exit.  Any former Participant who has moved out of, and is no longer employed in an Eligible Position after the first twelve months of a Performance Period will receive a pro-rated payment based on the number of months (partial months treated as full months) during the Performance Period that the former Participant worked in the Eligible Position and as set forth in Section 2.5 hereof.  Any former Participant who has moved out of, and is no longer employed in an Eligible Position during the first twelve months of a Performance Period will forfeit the Award.
 
3.4 Change in Eligible Position.  With respect to any Participant who moves from one Eligible Position to another Eligible Position with a different Award target, if the change is during the first twelve months of a Performance Period, the Participant's final Award shall be determined on a pro-rata basis based on the number of months (any partial month shall be treated as a full month at the new target) during the Performance Period that the Participant worked in each Eligible Position and as set forth in Section 2.5 hereof.  Any change after the first twelve months of a Performance Period will not impact the Award for that Performance Period. 

3.5 Leave of Absence.  With respect to any Participant who is on Company-approved leave of absence from an Eligible Position in excess of two hundred seventy (270) days, whether consecutive or nonconsecutive, during a Performance Period, the Participant's final Award as determined pursuant to Section 2.5 hereof shall be prorated based on the ratio of (i) the total number of days in the Performance Period less the number of days in excess of 270 during which the Participant was on one or more approved leaves of absence during the Performance Period to (ii) the total number of days in the Performance Period. 
 
Section 4: Termination Provisions
 
4.1 Retirement.  If after the first twelve months of a Performance Period a Participant's employment is terminated by reason of the Participant's Retirement (as defined below), then such Participant shall be eligible to receive a pro-rata portion of the Award that would have been payable to such Participant if he or she had remained employed throughout the Performance Period, based on the number of months (partial months treated as full months) worked in an Eligible Position during the Performance Period.  Such Award shall be paid at the time and in the manner set forth in Section 2.6 hereof.   If a Participant's employment is terminated by reason of a Retirement during the first twelve months of a Performance Period, the Participant's Award will be forfeited.  

4.2 Covered Termination.  If after the first twelve months of a Performance Period a Participant's employment is terminated by the Company in a Covered Termination (as defined below), then such Participant shall be eligible to receive a pro-rata portion of the Award that would have been payable to such Participant if he or she had remained employed throughout the Performance Period, based on the number of months (partial months treated as full months) worked in an Eligible Position during the Performance Period.  Such Award shall be paid at the same time and in the manner set forth in Section 2.6 hereof.  If a Participant's employment is terminated by reason of a Covered Termination during the first twelve months of a Performance Period, the Participant's Award will be forfeited.  

4.3 Death or Disability.  If during the Performance Period a Participant's employment is terminated by reason of the Participant's death or Disability (as defined in McDonald's Corporation 2012 Omnibus Stock Ownership Plan), then such Participant shall be eligible to receive a pro-rata portion of the Award that would have been payable to such Participant if he or she had remained employed throughout the Performance Period, based on the number of months (partial months treated as full months) worked in an Eligible Position during the Performance Period.  Such Award shall be paid at the time and in the manner set forth in Section 2.6 hereof.

4.4 Change of Control.  In the event of a Change of Control (as defined in McDonald's Corporation 2012 Omnibus Stock Ownership Plan) during a Performance Period, each Participant whose employment has not terminated prior to the consummation of such Change of Control shall be entitled to receive a payment in full satisfaction of his or her opportunity under the CPUP for such Performance Period in an amount equal to: (i) the amount that would be payable to such Participant under the CPUP, if the applicable performance goals were achieved at the level achieved during the portion of the Performance Period that precedes the Change of Control multiplied by (ii) a fraction, the numerator of which is the number of months (partial months treated as full months) in the portion of the Performance Period that precedes the Change of Control and the denominator of which is the total number of months in the Performance Period; provided, that the Participant shall forfeit his or her right to receive such payment if he or she experiences a termination of employment for Cause before the payment is made.  This payment shall be paid at the time and in the manner set forth in Section 2.6 hereof; provided, however, that if the Change of Control qualifies as a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company within the meaning of U.S. Treasury Department Regulation Section 1.409A-3(i)(5), payment will be made within thirty (30) days after the occurrence of the Change of Control.

4.5 Cause.  A Participant will forfeit the Award upon termination of employment for Cause (as defined in McDonald's Corporation 2012 Omnibus Stock Ownership Plan).
 
4.6 All Other Terminations.  Participants will forfeit the Award upon termination of employment for any reason other than those reasons set forth above in Sections 4.1 through 4.4, except to the extent otherwise provided pursuant to the terms of the ERRP.

4.7 Twelve Months in Eligible Position.  For the avoidance of doubt, if a Participant was in an Eligible Position for less than twelve months at the time of termination for any reason other than death or Disability, such Participant shall forfeit the Award.

4.8  Definitions.  
    
“Covered Termination” means a Participant's termination of employment by the Company or a subsidiary without Cause and (A) when the Participant satisfies the following three conditions:  (i) combined age and years of Company service equal to or greater than 48, (ii) Participant executes and delivers (and does not revoke) a release agreement in a form satisfactory to the Company, and (iii) Participant executes and delivers a non-competition agreement covering a period of 18 months in a form satisfactory to the Company as permitted by applicable law or (B) when the Participant terminates employment to become a franchisee.  However, if a Participant is employed by a subsidiary in a European Market, (i) above is not required.

“European Market” means the following markets: Austria, Belarus, Belgium, Bulgaria, Croatia, Czech. Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Morocco, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia/Montenegro, Slovakia, Slovenia, Spain, Sweden, Switzerland, U.K., Ukraine.

“Retirement” means a Participant's termination of employment when the Participant satisfies the following four conditions:  (i) combined age and years of Company service equal to or greater than 68, (ii) Participant provides 6 months advance written notice of his or her intention to terminate employment to the Corporate Vice President - Global Total Compensation, (iii) Participant executes and delivers (and does not revoke) a release agreement in a form satisfactory to the Company, (iv) Participant executes and delivers a non-competition agreement covering a period of 18 months in a form satisfactory to the Company as permitted by applicable law.  However, if a Participant is employed by a subsidiary in a European Market, (i) above is not required and the notice required by (ii) is 12 months.    

Section 5: Miscellaneous
 
5.1 Administration of the Plan.  The Committee administers the Plan. The Committee shall have full and final authority, in its discretion, but subject to the express provisions of the 2009 Cash Incentive Plan in the case of Participants with respect to whom such provisions apply, to: establish the terms and conditions of Awards; determine the extent to which cash payments are actually earned pursuant to Awards and the amounts to be paid; interpret the Plan and to make all determinations necessary or advisable for the administration of the Plan; and amend, modify suspend or terminate the Plan, in whole or in part, in any manner and for any reason, and without the consent of any Participant, or other person, provided that no such amendment, modification or termination shall adversely affect the payment of any Award for a Performance Period ending prior to the action amending, modifying or terminating the Plan or the payment of any Award payable pursuant to Section 4.4 hereof or the right of a Participant pursuant to any agreement with the Company or any subsidiary.  This administrative discretion specifically includes the right to modify Awards if necessary to be consistent with and avoid the imposition of tax penalties based upon Section 409A of the Internal Revenue Code.  The determination of the Committee on all matters relating to this Plan and all Awards shall be made in its sole discretion, and shall be conclusive and final.  No member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award.
 
5.2 Deferral.  Awards may be deferred only in accordance with, and subject to the terms of, the McDonald's Excess Benefit and Deferred Bonus Plan in effect at the time the deferral election is made.
 
5.3 Withholding Taxes.  The Company may withhold or cause to be withheld from any or all cash payments made under the Plan such amounts as are necessary to satisfy all federal, state, local and foreign withholding tax requirements related thereto.
 
5.4 Funding. Benefits payable under the Plan to any person shall be paid by the Company (or a subsidiary).  The Company shall not be required to fund, or otherwise segregate assets to be used for payment of, benefits under the Plan.  Participants shall have no claim against the Company or its assets with respect to Awards under the Plan other than as unsecured general creditors.
 

5.5 Forfeiture and Repayment Under Certain Circumstances.  Awards under the Plan are intended to align the Participant's long-term interests with the long-term interests of the Company.  If a Participant (i) violates a confidentiality, non-solicitation, non-competition, or similar restrictive covenant between the Company (or one of its subsidiaries) and such Participant or (ii) engages in willful fraud that causes harm to the Company (or one of its subsidiaries) or that is intended to manipulate the performance results under Section 2 of this Plan (either of (i) or (ii), “Detrimental Conduct”) either during employment with the Company or after such employment terminates for any reason, the Participant is acting contrary to the long-term interests of the Company.  Accordingly, the following rules shall apply under this Plan in respect of Detrimental Conduct:
 
		
	(a)
	In the event that the Company determines, in its sole and absolute discretion, that a Participant engaged in Detrimental Conduct prior to the second anniversary of the conclusion of the Performance Period, the Company may, if no payments hereunder have previously been made to such Participant, in its sole and absolute discretion, terminate such Participant's participation in the Plan.  Additionally, if payments hereunder have previously been made to such Participant, the Company may, in its sole and absolute discretion, send a notice of recapture (a “Recapture Notice”) to such Participant.  Within ten days after receiving a Recapture Notice from the Company, the Participant shall deliver to the Company an amount in cash equal to the gross cash payment previously made to such Participant hereunder.

		
	(b)
	The Company has sole and absolute discretion not to take action pursuant to this Section 5.5 upon discovery of Detrimental Conduct, and its determination not to take action in any particular instance shall not in any way limit its authority to terminate participation of a Participant and/or send a Recapture Notice in any other instance.

		
	(c)
	Upon receipt of a payment hereunder, the applicable Participant shall, if requested by the Company, certify on a form acceptable to the Company, that he or she is not, and has not previously been, engaged in Detrimental Conduct.

		
	(d)
	Notwithstanding any provision of this Section 5.5, if any provision of this Section 5.5 is determined to be unenforceable or invalid under any applicable law, such provision will be applied to the maximum extent permitted by applicable law, and shall automatically be deemed amended in a manner consistent with its objectives to the extent necessary to conform to any limitations required under applicable law; provided, Section 5.5 shall not apply in any manner to individuals subject to the laws of France.

		
	(e)
	Any action taken by the Company pursuant to this Section 5.5 is without prejudice to any other action the Company, or any of its subsidiaries, may choose to take upon determination that a Participant has engaged in Detrimental Conduct.

		
	(f)
	This Section 5.5 will cease to apply after a Change of Control.

Not withstanding anything in the Plan to the contrary, the Company will be entitled, to the extent permitted or required by applicable law, Company policy and/or the requirements of an exchange on which the Company's shares are listed for trading, in each case, as in effect from time to time, to recoup compensation of whatever kind paid by the Company at any time to a Participant under this Plan and each Participant, by accepting an Award pursuant to this Plan, agrees to comply with any Company request or demand for such recoupment.

5.6 Eligible Compensation.  Any Awards and payments of cash will constitute special incentive payments to the Participant and will not be taken into account in computing the amount of salary or compensation of the Participant for the purposes of determining any pension, retirement, death or other benefits under: (a) any qualified, non-qualified or supplemental pension, retirement or profit-sharing plan of the Company or any of its subsidiaries, or (b) any bonus, life insurance or other employee benefit plan of the Company or any of its subsidiaries.
 
5.7 Relationship to Other Plans.  With respect to any Participant who participates in the Company's Executive Retention Replacement Plan (“ERRP”) or has a Change of Control Employment Agreement (“CIC Agreement”) with the Company, notwithstanding anything to the contrary in this Plan the terms of the ERRP or CIC Agreement, as applicable, shall prevail to the extent of any inconsistency.
 
5.8 Section 162(m) of the Internal Revenue Code.  With respect to any Participant with respect to whom the Committee determines that the limitation on deductibility imposed by Section 162(m) of the Internal Revenue Code could apply, the Plan shall be interpreted and administered in a manner that is consistent with the provisions of the McDonald's Corporation 2009 Cash Incentive Plan (or any successor plan), and in the event of any inconsistency between this Plan and the McDonald's Corporation 2009 Cash Incentive Plan the relevant provisions of the latter plan shall prevail.
 

5.9 Awards Not Assignable. Awards granted under the Plan shall not be assignable or transferable other than by will or by the laws of descent and distribution.
 
5.10 No Additional Rights. Neither the establishment of this Plan, nor the granting of any Award, shall be construed to (a) give any Participant the right to continued employment with the Company or to any benefits not specifically provided under the Plan or (b) in any manner modify the right of the Company or any of its subsidiaries to modify, amend or terminate any of their respective employee benefit plans.
 
5.11 Choice of Law. The law of the State of Illinois, except its law with respect to choice of law, shall be controlling in all matters relating to this Plan.
 
5.12 Headings.  Section and clause headings are for ease of reference only and should not be taken as affecting the interpretation of the provisions of this Plan.MCD-3.31.2013- Ex 10.(N)

Exhibit 10(n)

McDONALD'S CORPORATION
2012 OMNIBUS STOCK OWNERSHIP PLAN
STOCK OPTION AWARD AGREEMENT

EXECUTIVE OFFICERS
McDONALD'S CORPORATION (the “Company” or “McDonald's”), hereby grants to the individual named in the chart below (the “Optionee”), the number of options to purchase shares of the Company's Stock (the “Options”) for the Option Price per share (the “Option Price”), both as set forth in the chart below.  These Options shall vest and terminate according to the vesting schedule and termination provisions described below in this Stock Option Award Agreement, including any Appendices (together, the “Agreement”).  The Options shall be subject to the terms and conditions set forth in this Agreement and in the McDonald's Corporation 2012 Omnibus Stock Ownership Plan, as amended (the “Plan”).
Capitalized terms not otherwise defined in this Agreement shall have the meaning provided in the Plan.  The Plan is incorporated into, and made a part of, this Agreement.
	
		
	Optionee:
	 

	Number of Options:
	 

	Type of Option Grant:
	Non-Qualified Stock Option

	Option Price:
	$94.00

	Grant Date
	February 13, 2013

	Expiration Date:
	10th Anniversary of the Grant Date

	Vesting Schedule:
	25% on first anniversary of Grant Date 
25% on second anniversary of Grant Date
25% on third anniversary of Grant Date
25% on fourth anniversary of Grant Date

1.Executive Retention Replacement Plan. If the Optionee participates in the Company's Executive Retention Replacement Plan (the “ERRP”), the treatment of the Options upon the Optionee's termination of employment (within the meaning of the ERRP) is governed by the terms of the ERRP, which terms will supersede any provisions of this Agreement and the Plan to the extent they are inconsistent with the ERRP.
2.Termination of Employment.  For purposes of this Section 2, the date of Termination of Employment will be the last date that the Optionee is classified as an employee in the payroll system of the Company or applicable Subsidiary, provided that in the case of a Grantee who is subject to U.S. federal income tax (a “U.S. Taxpayer”), the date of Termination of Employment will be the date that the Grantee experiences a “separation from service,” in accordance with the requirements of Code Section 409A.  The Committee shall have the exclusive discretion to determine when the Optionee is no longer employed for purposes of the Options, this Agreement and the Plan.
(a)Termination Within One Year of the Grant Date.  If the Optionee has a Termination of Employment for any reason other than death or Disability prior to the 12-month anniversary of the Grant Date, all Options will be immediately forfeited, regardless of any other provisions of this Agreement or the Plan.
(b)Termination for Cause.  If the Optionee has a Termination of Employment for Cause, all vested and unvested Options shall terminate immediately; provided, however, that if the Optionee has a Termination of Employment for Cause due solely to a Policy Violation (which means a termination resulting from the commission of any act or acts which violate the Standards of Business Conduct of the Company or a Subsidiary or any successor thereto (including underlying polices or policies specifically referenced therein), as the same is effect and applicable to the Optionee at of the time of the Optionee's violation), as determined by the Committee in its sole and absolute discretion, the provisions of subsection 2(c) below shall apply.

(c)Termination Due to Policy Violation.  If the Optionee has a Termination of Employment for Cause due solely to a Policy Violation, any Options vested on the date of the Optionee's Termination of Employment may be exercised not later than the 90th day following the Optionee's Termination of Employment (but not beyond the Expiration Date).  Any unvested Options shall be forfeited as of the date of the Optionee's Termination of Employment.
(d)Termination on Account of Death or Disability.  If the Optionee has a Termination of Employment on account of death or Disability (including during the first 12 months following the Grant Date), any unvested Options, whether or not vested on the date of the Optionee's Termination of Employment, may be exercised at any time within three years after such Termination of Employment (but not beyond the Expiration Date); and in the case of death, the Options may be exercised by (i) the Optionee's personal representative or by the person to whom the Options are transferred by will or the applicable laws of descent and distribution or (ii) the Optionee's beneficiary designated in accordance with Section 8 of the Plan.
For purposes of subsections (e) and (f) that follow, the term “Company Service” means the Optionee's aggregate number of years of employment with the Company and any Subsidiary, including employment with any Subsidiary during the period before it became a Subsidiary.
(e)Termination on Account of Retirement
i.Termination with At Least 68 Years of Combined Age and Service.  If the Optionee voluntarily terminates employment and (i) the Optionee's combined age and years of Company Service is equal to or greater than 68, (ii) the Optionee provides six months advance written notice of his or her intention to terminate employment to the Corporate Vice President - Global Total Compensation, (iii) the Optionee executes and delivers (and does not revoke) a release agreement satisfactory to the Company and (iv) the Optionee executes and delivers a non-competition agreement covering a period of 18 months in a form satisfactory to the Company as permitted by applicable law (as the Committee may require), any unvested Options that would have vested within three years of the Optionee's Termination of Employment, will become exercisable in accordance with the Vesting Schedule set forth above in this Agreement, and any exercisable Options may be exercised at any time within three years after the Optionee's Termination of Employment or before the Expiration Date, if sooner.  If the Optionee executes and delivers a non-competition agreement, and then violates the provisions of that agreement (in the Committee's discretion), all unexercised Options will immediately terminate and will not be exercisable. 
ii.Termination of Employment After Attaining Age 60 with 20 or More Years of Service.  If the Optionee terminates employment (other than for Cause) after attaining age 60 with 20 years or more of Company Service and the Optionee executes and delivers (and does not revoke) a release agreement satisfactory to the Company, any unvested Options that would have vested within three years of the date of the Optionee's Termination of Employment will become exercisable in accordance with the Vesting Schedule set forth above in this Agreement, and any exercisable Options may be exercised at any time within three years after the Optionee's Termination of Employment.
iii.Termination of Employment After Attaining Age 60 with Less than 20 Years of Service.  If the Optionee terminates employment (other than for Cause) after attaining age 60 but before completing 20 years of Company Service and the Optionee executes and delivers (and does not revoke) a release agreement satisfactory to the Company, any Options exercisable on the date of the Optionee's Termination of Employment may be exercised at any time within one year after such Termination of Employment (but not beyond the Expiration Date).  All unvested Options will be forfeited as of the date of Termination of Employment.
(f)Termination on Account of Special Circumstances.  If the Optionee has a Termination of Employment due to Special Circumstances (which means, a Termination of Employment due to the Optionee becoming an owner-operator of a McDonald's restaurant in connection with his or her Termination of Employment or a Termination of Employment by the Company or a Subsidiary without Cause, in each case, where the Optionee's combined age and years of Company Service meets the threshold set forth in the chart below and the Optionee satisfies the additional conditions set forth in subsections (i) and (ii) below, as applicable), the Options, to the extent unvested as of the date of the Optionee's Termination of Employment, will, for the applicable period after the Optionee's Termination of Employment specified in the chart below, become vested in accordance with the Vesting Schedule set forth above in this Agreement and any vested Options may be exercised at any time within the applicable period specified in the chart below after such Termination of Employment (but not beyond the Expiration Date).  As of the expiry of the applicable period specified in the chart below after the Optionee's Termination of Employment, any Options that remain unvested will be forfeited.  
	
		
	Age and Years of
Company Service
	Additional Vesting
and Time to Exercise

	68 plus years
	3 Years

	58 to 67 years
	2 Years

	48 to 57 years
	1 Year

i.Termination of Employment Without Cause.  In the case of the Optionee's Termination of Employment by the Company or a Subsidiary without Cause, to qualify for the treatment provided in this subsection (f), the Optionee must execute and deliver (i) a release agreement satisfactory to the Company (which the Optionee does not revoke) and (ii) a non-competition agreement covering a period of 18 months in a form satisfactory to the Company as permitted by applicable law (as the Committee or its delegee may require).  If the Optionee executes and delivers a non-competition agreement, and then violates the provisions of that agreement (in the Committee's discretion), all unexercised Options will immediately terminate and will not be exercisable.  
ii.Termination due to Change in Status to Owner-Operator.  If the Optionee becomes an owner-operator of a McDonald's restaurant in connection with his or her Termination of Employment, to qualify for the above treatment, the Optionee must execute and deliver (and not revoke) a release agreement satisfactory to the Company.  
(g)Termination Due to Disaffiliation.  If the Optionee has a Termination of Employment because of a Disaffiliation (Disaffiliation of a Subsidiary means the Subsidiary's ceasing to be a Subsidiary for any reason (including, without limitation, as a result of a public offering, or a spinoff or sale by the Company, of the stock of the Subsidiary)) and the Optionee executes and delivers (and does not revoke) a release agreement satisfactory to the Company, any Options vested on the date of the Disaffiliation may be exercised at any time within one year following the Disaffiliation (but not beyond the Expiration Date).  All unvested Options shall be forfeited as of the date of the Disaffiliation.  If, however, the Options are assumed by another entity, this rule will not apply and the Options will continue in effect, subject to any changes as may be made to reflect the assumption of the Options.  
(h)Any Other Reason.  If the Optionee has a Termination of Employment for a reason other than those specified in Sections 2(a)-(g) above, any Options vested on the date of the Optionee's Termination of Employment may be exercised not later than the 90th day following the Optionee's Termination of Employment (but not beyond the Expiration Date).  All unvested Options shall be forfeited as of the date of Termination of Employment.
(i)Selection of Rule.  If the Optionee's Termination of Employment is covered by more than one of the foregoing rules, the applicable rule that is the most favorable to the Optionee shall apply, except that (i) in the case of a Termination of Employment for Cause, the Committee shall have the sole and absolute discretion to determine whether the Optionee is eligible for the treatment described in Section 2(c) above; and (ii) in the case of a Termination Due to Disaffiliation, Section 1(g) shall apply.
3.Responsibility for Taxes.  Regardless of any action the Company or the Optionee's employer (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Optionee acknowledges that liability for all Tax-Related Items is and remains the Optionee's responsibility and may exceed the amount actually withheld by the Company or the Employer.  The Optionee further acknowledges that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Options, including the grant, vesting or exercise of the Options, the subsequent sale of shares of Stock acquired as a result of such exercise and the receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Options to reduce or eliminate the Optionee's liability for Tax-Related Items or achieve any particular tax result.  Furthermore, if the Optionee has become subject to Tax-Related Items in more than one jurisdiction between the Grant Date and the date of any relevant taxable event, the Optionee acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.
The Optionee authorizes the Company and/or the Employer, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following: (i) withholding from the Optionee's wages or other cash compensation paid to the Optionee by the Company and/or the Employer; or (ii) withholding from proceeds of the sale of shares of Stock acquired at exercise of the Options, either through a voluntary sale or through a mandatory sale arranged by the Company (on the Optionee's behalf pursuant to this authorization). The Optionee shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of the Optionee's participation in the Plan that cannot be satisfied by the means previously described.  The Company may refuse to issue or deliver shares of Stock or the proceeds of the sale of shares of Stock if the Optionee fails to comply with his or her obligations in connection with the Tax-Related Items.  
4.Repayment/Forfeiture.  Any benefits the Optionee may receive hereunder shall be subject to repayment or forfeiture as may be required to comply with (i) any applicable listing standards of a national securities exchange adopted in accordance with Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding recovery of erroneously awarded compensation) and any implementing rules and regulations of the U.S. Securities and Exchange Commission adopted thereunder, (ii) similar rules under the laws of any other jurisdiction and (iii) any policies adopted by the Company to implement such requirements, all to the extent determined by the Company in its discretion to be applicable to the Optionee.

5.No Employment or Service Contract. Nothing in this Agreement or in the Plan shall confer upon the Optionee any right to continue in the employ of the Company or any Subsidiary for any period of specific duration or interfere with or restrict in any way the right of the Company or any Subsidiary, which is hereby expressly reserved, to remove, terminate or discharge the Optionee at any time for any reason whatsoever, with or without Cause and with or without advance notice.
6.Governing Law.  The Options are governed by, and subject to, United States federal and Illinois state law (without regard to the conflict of law provisions) and the requirements of the New York Stock Exchange as well as the terms and conditions set forth in the Plan and this Agreement.  
7.Electronic Delivery and Acceptance.  The Company may, in its sole and absolute discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means and/or require the Optionee to accept this Option or any future option grant by electronic means.  The Optionee hereby consents to receive such documents by electronic delivery and agrees that acceptance of this Option and any future option grant may be through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
8.Severability.  The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
9.Waiver. The waiver by the Company with respect to compliance of any provision of this Agreement by the Optionee shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach of such party of any provision of this Agreement.
10.Headings. The headings in this Agreement have been inserted for convenience of reference only, and are to be disregarded in any construction of the provisions of this Agreement.
11.Appendices.  The Appendices constitute part of this Agreement.  Notwithstanding the provisions in this Agreement, the Options shall be subject to any special terms and conditions set forth in the Appendices to this Agreement.  

By accepting the Options, the Optionee agrees to the terms of this Agreement and the Plan.
BY:__________________________________

PRINT NAME:_______________________
DATE:_____________________________

APPENDIX A
Power of Attorney   
This Appendix A to the Agreement is a Power of Attorney that the Optionee authorizes by participating in the Plan.  Certain capitalized terms used but not defined in this Appendix A have the meanings set forth in the Agreement (including the Appendix) or the Plan.

I hereby irrevocably constitute and appoint the Corporate Secretary and each Assistant Corporate Secretary of McDonald's Corporation as my true and lawful attorney-in-fact (“Attorney”) with full power and authority and full power of substitution and resubstitution, to take in my name and on my behalf any and all actions necessary or desirable to meet any withholding obligation for Tax-Related Items as contemplated by the Agreement, including any and all of the following actions:
(i)  To sell in my name and on my behalf such number of shares of the common stock of McDonald's I acquire at vesting to the extent that McDonald's, in its sole discretion, determines that such sale is necessary and/or advisable in connection with tax withholding requirements under local law and/or regulations as a result of the vesting and exercise of any Options and to pay in my name and on my behalf my proportionate share of any lawful dealer's commission or discount and related expenses of such sale;
(ii)  To direct in my name and on my behalf the payment to McDonald's of the proceeds of such sale (net of any brokerage commissions) to the extent that McDonald's, in its sole discretion, determines is necessary and/or advisable in order to satisfy and discharge any such withholding obligation, with any excess to be returned to me by depositing the same in my Merrill Lynch account; and
(iii)  To execute such agreements and other documents and to take such other and further actions as may be necessary or desirable, as determined by the Attorney, to effectuate the foregoing.
This Power of Attorney is an agency coupled with an interest and all authority conferred hereby shall be irrevocable and shall not be terminated by me or by operation of law, whether by my death or incapacity or by the occurrence of any other event or events.  If, after the execution hereof and prior to the vesting and exercise of the Options, I should die or become incapacitated, actions taken by the Attorney hereunder and under the Agreement shall be as valid as if such death or incapacity had not occurred, regardless of whether the Attorney or McDonald's has received notice of such death or incapacity.
To induce any transfer agent or other third party to act, I hereby agree that any transfer agent or other third party receiving a duly executed copy or facsimile of this Power of Attorney may act upon it.  I for myself and for my heirs, executors, legal representatives and assigns hereby agree to indemnify and hold harmless any such transfer agent or other third party from and against any and all claims that may arise against such transfer agent or other third party by reason of such transfer agent or third party having relied on this Power of Attorney.
This Power of Attorney shall automatically terminate (without affecting any lawful action taken hereunder, which shall survive such termination) immediately upon the satisfaction and discharge of all withholding obligations for Tax-Related Items in connection with any Options to me under the Plan.  
The Attorney shall be entitled to act and rely upon any representation, warranty, agreement, statement, request, notice or instruction respecting this Power of Attorney given by me, not only as to the authorization, validity and effectiveness thereof, but also as to the truth and accuracy of information therein contained.  I agree that the Attorney assumes no responsibility or liability to any person, including me, other than to direct the transactions expressly contemplated hereby.  I also agree that the Attorney makes no representation about, and has no responsibility for, any aspect of the Plan or the Options, and the Attorney shall not be liable for any error of judgment, for any act done or omitted or for any mistake of fact or law except for the Attorney's own willful misconduct, gross negligence or bad faith.  
This Power of Attorney shall be governed by and construed in accordance with the laws of the State of Illinois, without regard to any otherwise applicable conflicts of law or choice of law principles.

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