Document:

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                                  Exhibit 10.1
                                  ------------

                              EMPLOYMENT AGREEMENT
                              --------------------

     THIS EMPLOYMENT AGREEMENT (this "Agreement"), executed as of September 17,
2001, by and between JOHN Q. HAMMONS HOTELS, INC., a Delaware Corporation (the
"Company"), and LOU WECKSTEIN ("Employee").

                                    RECITALS
                                    --------

     Employee will be employed as the President of the Company on the terms and
conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the parties agree as follows:

                                    AGREEMENT
                                    ---------

     1.   Employment. The Company hereby employs Employee as President
          ----------
("President") of the Company, and Employee hereby accepts employment on the
terms and subject to the conditions set forth herein. Employee shall have and
exercise the authority and perform the duties normally incident to the office of
President, as well as such other duties as may be reasonably delegated to him by
the Company's Chief Executive Officer (the "CEO") and Board of Directors (the
"Board").

     2.   Employment Date. Employee's employment with the Company shall begin on
          ---------------
September 15, 2001 (the "Commencement Date"), and shall continue until
terminated by either party.

     3.   Compensation.
          ------------

          (a)  Company agrees to pay the Employee an annual "Base Salary" of
Three Hundred Thousand Dollars ($300,000.00) less applicable withholding, to be
paid to Employee on the Company's normal payroll schedule. For purposes of this
Agreement, "Base Salary" shall not include any performance incentives, bonuses,
or other benefits.

          (b)  The Employee shall be entitled to participate in any incentive or
supplemental compensation plan or arrangement instituted by the Company for
which the Employee is eligible as determined by the plan, and shall be eligible
for an annual cash bonus for his first year of employment of up to forty percent
(40%) of the Base Salary. The amount of such bonus, if any, will be determined
on the same basis and under the same bonus plan used for other executive
officers of Company.

          (c)  The Employee agrees and hereby acknowledges that any money,
benefits or other forms of compensation paid to Employee by a private individual
or entity affiliated with

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the Company ("Extra Compensation") are provided as additional compensation for
his services to the Company. Employee also agrees and acknowledges that Extra
Compensation in no way affects the Duty of Loyalty and other fiduciary duties
Employee owes to Company and its shareholders as an officer of the Company
(collectively "Fiduciary Duties"). The Employee further agrees to immediately
notify the Company in writing at the end of each year the full amount of any
Extra Compensation received by him that year and the person paying that Extra
Compensation.

          (d)  Stock Options. The Company shall grant to Employee options to
               -------------
purchase one hundred thousand (100,000) shares ("Options") of the Company's
Class A Common Stock, par value One Dollar ($1.00) ("Common Stock"), for their
fair market value on the grant date of the option, pursuant to the Company's
1994 Stock Option Plan as in effect on the date hereof.

          Except as otherwise provided herein, each of the Options granted
hereunder shall vest and become exercisable over a four (4) year period
following their Grant Date as follows: twenty-five percent (25%) of the granted
Options shall vest and become exercisable on each anniversary of the Grant Date
of the Options. Notwithstanding the foregoing, all Options granted to Employee
shall immediately vest and become exercisable upon the sale, merger,
reorganization or recapitalization of the Company pursuant to which the holders
of the Common Stock of the Company become entitled to receive stock, securities,
or other assets in exchange for their shares of Common Stock.

     4.   Benefits. Employee shall be entitled to receive the following
          --------
benefits from the Company:

          (a)  Insurance. The Company shall, at its sole expense, provide such
               ---------
medical and disability insurance as is generally available to other executive
employees of the Company. If immediate coverage under the Company's insurance
plans is not available to Employee as of the Commencement Date, the Company
shall pay, or reimburse Employee for, the cost of maintaining full coverage
under Employee's existing life, health and disability insurance policies until
Employee is covered under the Company's plans.

          (b)  Retirement Plan. Employee shall be entitled to participate in any
               ---------------
retirement, savings or benefit plans that the Company makes available to any of
its executive employees.

          (c)  Club Memberships. The Company shall provide a golf membership at
               ----------------
Highland Springs Country Club (the "Country Club"). Employee shall be
responsible for all monthly dues and food and other incidental charges incurred
by Employee for personal use at the Country Club.

          (d)  Vacation. Employee shall be entitled to three (3) weeks of paid
               --------
vacation annually.

          (e)  Indemnity; D & O Insurance. To the extent permitted by law, the
               --------------------------
Company shall indemnify Employee for any and all liability or damages incurred
by Employee

                                        2

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in connection with his employment hereunder; and Employee shall be covered by
any Directors and Officers Liability Insurance which is maintained by Company.

          (f)  Miscellaneous. The Company shall reimburse Employee for all costs
               -------------
and expenses reasonably incurred by Employee in connection with the performance
of his duties hereunder.

     5.   Relocation. The Company shall pay the relocation costs for Employee
          ----------
and his family to move from Phoenix to Springfield, including without limitation
(i) packing and moving their personal effects, furniture and other property,
(ii) travel costs (including meals and lodging), (iii) insurance costs related
to the move. In the event the Company terminates this Agreement, it shall pay
the relocation costs for Employee and his family to move to Phoenix from
Springfield as specified above.

     6.   Employee Conduct.
          ----------------

          (a)  If the Employee has the authority to make purchases or
disbursements on behalf of the Company, the Employee will make no purchase or
disbursement or other payment of any kind or character which is in violation of
any written or unwritten policy of the Company or in violation of any applicable
statute, rule, regulation, ordinance, or order of any jurisdiction, foreign or
domestic. The Employee further agrees to indemnify and hold harmless the Company
from any liabilities, obligations, claims, penalties, fines, expenses, or losses
resulting from any willful or unlawful acts of the Employee which contravene in
any material respect any policy of the Company or any statute, rule, regulation,
ordinance, or order of any jurisdiction, foreign or domestic, applicable to the
Employee or the Company.

          (b)  The Employee agrees to disclose honestly and fully all
information and documentation in Employee's possession concerning all
transactions or events relating to or affecting the Company as and to the extent
such information or documentation is requested by the Company.

     7.   Restrictive Covenants.
          ---------------------

          (a)  Consideration. Employee agrees that his employment with the
               -------------
Company, his continuing employment with the Company, and the Company's provision
of training and proprietary information to the Employee is sufficient
consideration for agreeing to the restrictive covenants contained in this
Agreement.

          (b)  Defense. The parties agree that the existence of any claim or
               -------
cause of action of the Employee against the Company, based on this Agreement or
any other express or implied agreement, shall not constitute a defense to the
enforcement by the Company of any of the restrictive covenants contained in this
Agreement. These restrictive covenants shall survive the termination, for any
reason, of any other agreement between the parties or of the employment
relationship between the parties.

                                        3

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          (c)  Scope. Employee agrees that if any court of competent
               -----
jurisdiction determines that any provision contained in these restrictive
covenants are too broad or otherwise unreasonable, the court shall amend only
such provisions as necessary for the restrictions contained in these covenants
to be enforceable, as so amended, shall be enforced by such court. Employee
further agrees that any alleged breach or alleged failure of performance of this
Agreement by Company shall not render any provision of this Agreement
unenforceable.

          (d)  Covenant Not to Compete. During the Employee's employment by the
               -----------------------
Company, Employee agrees not to become employed or otherwise affiliated with any
person or business organization as an officer or executive employee of any
business directly in competition with the Company's business.

          (e)  Covenant Not to Disclose. Employee acknowledges that during
               ------------------------
Employee's employment, the Company will provide to Employee and Employee will
otherwise obtain, have access to, or learn certain Confidential Information of
the Company. The term "Confidential Information" includes, without limitation,
any information received from clients, bid and purchasing practices and
policies, client lists, contracts, pricing lists, discount practices and
policies, marketing and promotional practices, types of services, types of
products, supplier accounts, purchasing and pricing arrangements, employee
compensation, technical data, proprietary training, financial information,
computer databases, and other non-public and proprietary data. Employee agrees
not to disclose any Confidential Information to any person or business
organization (or agent or representative of a person or business organization)
outside of the Company at any time.

          (f)  Covenant Not to Solicit. For a period of two years after
               -----------------------
termination of his employment, Employee agrees not to solicit, hire, or be
connected with the solicitation or hiring of any person who was an employee of
the Company within the six months prior to termination of Employee's employment.

          (g)  No Disparagement. The Employee agrees not to engage in any
               ----------------
pattern of conduct which involves publishing or making written or verbal
statements or remarks which are disparaging or damaging to the integrity,
reputation or goodwill of the Company or its management.

     8.   Termination.
          -----------

          (a)  The Company may terminate this Agreement at any time with or
without "Cause". As used herein, the term Cause means gross negligence, fraud or
willful misconduct.

          (b)  This Agreement shall terminate upon the death of Employee or, at
the election of the Company, if Employee is unable to perform his duties
hereunder by reason of illness, injury or incapacity for one hundred eighty
(180) consecutive days ("Disability") (during which time Employee shall continue
to be compensated as provided herein).

                                        4

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     9.   General Provisions.
          ------------------

          (a)  Assignment Prohibited. Employee may not assign or delegate any of
               ---------------------
his rights or obligations hereunder. Company may assign this Agreement in
connection with a merger, sale of the stock or assets, reorganization, spin-off
or separation of any subsidiary or department or any similar transaction.

          (b)  Notice. Unless contrary provisions are expressly set forth
               ------
herein, all notices of any kind shall be in writing and shall, at the option of
the party giving the notice, be (i) personally delivered, (ii) delivered by
reputable overnight courier, (iii) sent by telefax, or (iv) sent, by certified
or registered mail, postage prepaid, return receipt requested, to the person
entitled to receive the notice at the last address provided in writing by such
person to the other signatory. All such notices shall be deemed given on the
date the notice is actually received at the address indicated.

          (c) Titles and Captions. All section titles or captions in this
              -------------------
Agreement are for convenience only. They shall not be deemed part of this
Agreement and in no way define, limit, extend or describe the scope or intent of
any provisions hereof. Except as specifically provided otherwise, references to
"Sections" are to Sections of this Agreement.

          (d)  Further Action. The parties to this Agreement shall execute and
               --------------
deliver all documents, provide all information and take or refrain from taking
action as may be necessary or appropriate to achieve the purposes of this
Agreement.

          (e)  Binding Effect. This Agreement shall be binding upon and inure to
               --------------
the benefit of the parties hereto and their heirs, executors, administrators,
successors, legal representatives and permitted assignees.

          (f)  Entire Agreement. This Agreement constitutes the entire agreement
               ----------------
among the parties hereto pertaining to the subject matter of this Agreement and
supersedes all prior agreements, negotiations, and discussions among the parties
hereto regarding the subject matter of this Agreement.

          (g)  Creditors. None of the provisions of this Agreement shall be for
               ---------
the benefit of or enforceable by any creditors of the parties.

          (h)  Waiver. No failure by any party to insist upon the strict
               ------
performance of any covenant, duty, agreement or condition of this Agreement or
to exercise any right or remedy consequent upon a breach thereof shall
constitute waiver of any such breach or any other covenant, duty, agreement or
condition.

          (i)  Counterparts. This Agreement may be executed in counterparts, all
               ------------
of which together shall constitute an agreement binding on both of the parties,
notwithstanding that both such parties are not signatories to the original or
the same counterpart. Each party shall become bound by this Agreement
immediately upon affixing his or its signature hereto, independently of the
signature of the other party.

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          (j)  Applicable Law. This Agreement shall be construed in accordance
               --------------
with and governed by the internal laws of the State of Missouri, without regard
to the principles of conflicts of law. The parties agree that the appropriate
venue for any dispute relating to this Agreement shall be the Circuit Court for
Greene County, Missouri, or the U.S. District Court for the Western District of
Missouri, Southern Division, located at Springfield, Missouri.

          (k)  Invalidity. Notwithstanding Section 7C, above, if any provision
               ----------
of this Agreement is deemed to be invalid or unenforceable by any court of
competent jurisdiction, the remainder of this Agreement shall remain valid and
fully enforceable.

          (l)  Drafting. No provision of this Agreement shall be interpreted for
               --------
or against any party hereto on the basis that such party was the draftsman of
such provision; and no presumption or burden of proof shall arise disfavoring or
favoring an party by virtue of the authorship of any of the provisions of this
Agreement.

          IN WITNESS WHEREOF, Company and Employee have caused this Employment
Agreement to be executed as of the date first set forth above.

                                                COMPANY:

                                                JOHN Q. HAMMONS HOTELS, INC.

                                                By: /s/John Q. Hammons
                                                    ----------------------------
                                                    John Q. Hammons,
                                                    Chairman of the Board

                                                EMPLOYEE:

                                                /s/ Lou Weckstein
                                                --------------------------------
                                                Lou Weckstein

                                        6<PAGE>

                                                                   EXHIBIT 10(d)

                             McDONALD'S CORPORATION
                        1975 STOCK OWNERSHIP OPTION PLAN
                             AS AMENDED AND RESTATED
                             -----------------------

THE PLAN
--------

     McDonald's Corporation (the "Company") hereby amends and restates the
McDonald's Corporation 1975 Stock Ownership Option Plan, effective July 30,
2001. As so amended and restated, the McDonald's Corporation 1975 Stock
Ownership Option Plan is hereinafter called the "Plan". The terms of options
granted prior to the effective date of this amendment shall not be adversely
affected in any way by this amendment.

     1.   Purpose. The purpose of this Plan is to advance the interest of the
          -------
Company by encouraging and enabling the acquisition of a larger personal
financial interest in the Company by those employees upon whose judgment and
efforts the Company is largely dependent for the successful conduct of its
operations. It is anticipated that the acquisition of such financial interest
will stimulate the efforts of such employees on behalf of the Company,
strengthen their desire to continue in the service of the Company and encourage
shareholder and entrepreneurial perspectives through employee stock ownership.
It is also anticipated that the opportunity to obtain such financial interest
will prove attractive to promising new managerial and executive talent and will
assist the Company in attracting such employees. The options granted hereunder
shall not constitute incentive stock options as such term is defined in Section
422A of the Internal Revenue Code.

     2.   Scope of the Plan. An aggregate of 121,780,788 of the Company's
          -----------------
authorized but unissued shares of common stock, $.01 par value per share or
shares acquired by purchase as described in the paragraph below or any
combination of shares from both sources are hereby made available, and shall be
reserved for issuance, under the Plan. Effective January 1, 2001, an additional
one million (1,000,000) shares were made available and were reserved for
delivery on account of the exercise of awards under this Plan and payment of
benefits in connection with such awards. The aggregate number of shares
available under this Plan shall be subject to adjustment on the occurrence of
any of the events and in the manner set forth in Section 11 hereof. If an option
shall expire or terminate for any reason, without having been exercised in full,
the unpurchased shares subject thereto shall (unless the Plan shall have
terminated or unless all or a part of such shares were issued under the
Company's 1978 Incentive Plan) become available for other options under the
Plan.

          The Board of Directors (called the "Board") or such person or persons
that the Board shall specifically authorize or direct to act on its behalf shall
also have the authority to purchase from time to time, in such amounts and at
such prices as it, in its discretion, shall deem advisable or appropriate,
shares of the common stock of the Company, to be held as treasury

<PAGE>

shares and reserved and used solely for issuance at the discretion of the Option
Committee, as set forth in Section 3 hereof, upon exercise of options granted
under this Plan and in accordance with the provisions of the preceding
paragraph.

     3.   Administration. Except as herein expressly reserved by the Board and
          --------------
not delegated by the Board to the Committee, the Plan shall be administered by a
Committee, to be known as the Option Committee (called the "Committee"), which
will include not less than three Directors of the Company, who shall be
appointed, from time to time, by the Board. Except as herein expressly reserved
by the Board and not delegated by the Board to the Committee, the Committee
shall have full and final authority, in its discretion, but subject to the
express provisions of the Plan: (a) to determine the purchase price of the
common stock covered by each option, and the individuals to whom, and the time
or times at which, options shall be granted and the number of shares to be
covered by each option; (b) to interpret the Plan; (c) to prescribe, amend and
rescind rules and regulations relating to the Plan; (d) to determine the terms,
provisions, and any restrictions or conditions (including but not limited to
restrictions with respect to stock acquired upon exercise of the option which
may continue beyond the date of the optionee's termination of employment) of the
respective option agreements (which need not be identical) by which options
shall be evidenced and, with the consent of the optionee, to modify the terms,
provisions, restrictions or conditions of any option agreement; (e) to cancel,
with the consent of the optionee, outstanding options and to grant new options
in substitution therefor; (f) to authorize foreign subsidiaries to adopt plans
as provided in Section 17; (g) to delegate its duties and responsibilities under
the Plan with respect to such foreign subsidiary plans, except its duties and
responsibilities with respect to grants of options to persons who, under Section
16(b) of the Securities Exchange Act of 1934, as amended (the "Act"), are
treated (in the opinion of counsel for the Company) as officers or directors of
the Company, to such individuals or committees as the Committee in its sole
discretion may approve and (i) the acts thereunder by such individuals or
committees shall be treated hereunder as acts of the Committee and (ii) such
individuals or committees shall report to the Committee regarding the delegated
duties and responsibilities; and (h) to make all other determinations deemed
necessary or advisable for the administration of the Plan.

     4.   Eligibility. With the exception of clerical employees and with the
          -----------
further exception of persons (other than managers) employed in Company-owned
restaurants, options may be granted to (a) any employees of the Company or its
domestic subsidiaries, or (b) any employees, officers and directors of the
Company's foreign subsidiaries. Any entity in which the Company directly or
through intervening subsidiaries owns twenty-five percent (25%) or more of the
total combined voting power or value of all classes of stock or, in the case of
an unincorporated entity, a twenty-five percent (25%) or more interest in the
capital and profits, shall be treated as a subsidiary. In selecting the
individuals to whom options shall be granted, as well as in determining the
number of shares subject to each option, the Committee shall take into
consideration such factors as it deems relevant in connection with accomplishing
the purpose of the Plan. Subject to the provisions of Section 2 hereof, an
individual who has been granted an option may, if he is otherwise eligible, be
granted additional options if the Committee shall so determine.

                                       -2-

<PAGE>

     5.   Option price. The purchase price of the stock covered by each option
          ------------
shall not be less than the fair market value of such stock on the date the
option is granted (herein called the "Option Date"). For the purposes hereof the
fair market value shall be deemed to be the closing price of said stock on the
New York Stock Exchange Composite Tape on the Option Date or, if no sales of
said stock appear on such Tape on that date, on the next preceding date on which
there were such sales. Such price shall be subject to adjustment as provided in
Section 11 hereof.

     6.   Terms of employment. No obligation of the Company as to the length of
          -------------------
employment shall be implied by the terms of this Plan or any option granted
hereunder. The Company reserves the same rights to terminate employment of any
employee as existed prior to the date hereof.

     7.   Non-transferability of options. An option granted hereunder shall, by
          ------------------------------
its terms, not be transferable other than by will or the laws of descent and
distribution and may be exercised, during his lifetime, only by the optionee;
provided, however, that an optionee may, in a manner specified by the Committee,
designate in writing an individual beneficiary or beneficiaries to exercise an
option granted hereunder after the optionee's death.

     8.   Restricted stock. Upon granting an option or a substituted option or
          ----------------
upon accelerating the exercise date of an option pursuant to Section 16 or, with
respect to previously granted outstanding options, upon consent of the optionee,
the Committee may provide that shares granted upon exercise of the option shall
be subject to such restrictions as it may from time to time deem appropriate.
Specifically, but without limitation, the Committee may provide that shares
granted upon exercise of the option shall be restricted for such period after
the date of exercise as the Committee may determine, and shall be
non-transferable during such period, provided that with respect to options which
are accelerated, the restriction period shall not extend beyond the earliest
date on which the option or portion thereof could have been exercised prior to
acceleration. The restriction shall provide that if the optionee's employment is
terminated for reasons other than death, permanent disability or any other
reason specified by the Committee during the restriction period, the optionee
shall resell the restricted stock to the Company at the lesser of the option
exercise price paid or the fair market value on the date of termination of
employment. Any such shares shall bear an appropriate legend specifying that
such shares are subject to such restrictions. The Committee shall have
authority, in its discretion, to accelerate the time at which any or all of the
restrictions may lapse prior to the expiration of the restrictions or to remove
any or all of the restrictions. After the expiration of the restrictions, the
Committee shall cause shares free of the restrictions to be reissued without a
legend. Notwithstanding the foregoing, such restrictions shall not apply to
shares issued upon exercise after termination of employment by reason of death
or permanent disability pursuant to Subsection 9(a) and 9(b) hereof and, with
respect to shares issued subject to such restrictions, such restrictions shall
be cancelled by the Committee upon submission to the Committee of proof that the
termination of the optionee's employment occurred by reason of the optionee's
death, permanent disability (as defined in Section 9) or other reasons specified
by the Committee.

     9.   Termination of employment. An unexercised option, or any unexercised
          -------------------------
installment thereof, shall terminate if the employment of the optionee by the
Company or any of

                                       -3-

<PAGE>

its subsidiaries shall be terminated for any reason; except that (a) if such
employment is so terminated by death of the optionee, any unexercised portion of
the option (whether or not currently exercisable) at the date of death may be
exercised, in whole or in part, at any time within three years after the date of
death, by the optionee's personal representative or by the person to whom the
option is transferred by will or the applicable laws of descent and
distribution, and any such option which by its terms would otherwise expire
after the optionee's death but prior to the end of such three-year period
following the optionee's death, shall be extended so as to permit any
unexercised portion thereof to be exercised at any time within such three-year
period, provided that in no event shall any option be exercised after 13 years
from the Option Date; or (b) if such employment is terminated as a result of the
permanent disability of the optionee, the unexercised portion of the option
(whether or not currently exercisable) at the date of such termination of
employment may be exercised, in whole or in part, at any time within three years
after the date of such termination, and any such option which by its terms would
otherwise expire after the optionee's termination of employment by reason of
permanent disability but prior to the end of the three-year period following the
optionee's termination of employment, shall be extended so as to permit any
unexercised portion thereof to be exercised at any time within such three-year
period, provided that in no event shall any option be exercised after 13 years
from the Option Date; (c) if such employment is terminated on account of
retirement after attaining age 60 with at least 20 years of Company service, any
unexercised portion of an option or an installment which is then exercisable or
which becomes exercisable within three years following the date of retirement
may be exercised at any time within three years after such retirement, provided
that in no event shall any option be exercised after 10 years from the Option
Date; (d) if such employment is terminated on account of retirement after
attaining age 60 with less than 20 years of Company service, any unexercised
portion of an option or an installment which is then exercisable may be
exercised at any time within one year after such retirement, provided that in no
event shall any option be exercised after 10 years from the Option Date; (e) if
such employment is terminated on account of retirement with combined age and
years of Company service equal to or greater than 70, any unexercised option,
which was granted on or after May 1, 1999 and that is then exercisable or which
would become exercisable within three years of such retirement if the optionee
remained employed by the Company or a Subsidiary throughout such three-year
period, may be exercised, in whole or in part, by the optionee, at any time
within three years after the optionee's retirement provided that in no event
shall any option by exercised after 10 years from the Option Date; and further
provided that the optionee executes and delivers to the Company a two-year
non-competition agreement (in a form reasonably satisfactory to the Company);
and further provided that the optionee provides one-year's prior written notice
of the optionee's intention to retire to the officer in charge of the Benefits
and Compensation Department in Oak Brook Illinois; (f) if an optionee terminates
employment to become an owner-operator of a McDonald's restaurant or if an
optionee terminates after January 15, 2000 as a result of a job elimination, the
optionee will receive an extension of time to exercise any unexercised options
granted on or after May 1, 1999 and accelerated vesting of these options based
on the following rules that incorporate age and years of Company service:

                                       -4-

<PAGE>

          Age & Years of        Additional Vesting and Time to Exercise
          Company Service       Options Granted On or After May 1, 1999
          ---------------       ---------------------------------------
          70 plus years         3 Years
          60 to 69 years        2 Years
          50 to 59 years        1 Year;

provided that in no event shall any option be exercised after 10 years from the
Option Date or; (g) if such employment is terminated for any other reason
excluding termination for cause, the unexercised portion of the option (to the
extent exercisable on the date such employment is terminated) shall be
exercisable at any time within 30 days after the date of such termination,
provided that in no event shall any option be exercised after 10 years from the
Option Date. Permanent disability shall mean a mental or physical condition
which renders an optionee unable or incompetent to carry out the job
responsibilities he held or tasks to which he was assigned at the time the
disability was incurred. Job elimination shall include, without limitation,
terminations of employment by the Company due to corporate restructuring or
reorganization, job restructuring, reductions in force, outsourcing or
replacement of jobs by technology.

If the optionee violates the provisions of the non-competition agreement
described in Section 9(e) during the two-year period following retirement, all
unexercised options granted on or after May 1, 1999 will immediately terminate
and will not be exercisable.

     10.  Time of granting options. The Option Date under the Plan shall be the
          ------------------------
date on which such option shall be duly granted by or on behalf of the Company.

     11.  Adjustments. Notwithstanding any other provision or the Plan, option
          -----------
agreements entered into hereunder shall contain such provisions as the Committee
shall determine for adjustment of the number and class of shares covered
thereby, or of the option prices, or both, to reflect a stock dividend, stock
split-up, share combination, recapitalization, merger, consolidation,
acquisition of property or shares, separation, reorganization, liquidation or
the like, of or by the Company. In any such event, the aggregate number of class
of shares available under the Plan, shall be appropriately adjusted.

     12.  Termination and amendment of the Plan. This Plan shall terminate on
          -------------------------------------
May 4, 2010. The Plan may be terminated at such earlier time, or be further
extended until such time, as the Board may determine. A termination shall not
affect any options then outstanding under the Plan.

          The Board may make modifications of the Plan as it shall deem
advisable, without further approval of the stockholders of the Company, except
as such stockholder approval may be required under (i) Rule 16b-3 (or any
successor provision) under the Act or (ii) the listing requirements of any
securities exchange registered under the Act on which are listed any of the
Company's equity securities.

                                       -5-

<PAGE>

     13.  Change in Control. All unexercised options granted on or after May 1,
          -----------------
1999, which are held by an optionee shall become exercisable upon the occurrence
of a Change in Control. A Change in Control shall be deemed to have occurred at
such time as:

          (i)    any "person" (as that term is used in Sections 13(d) and
14(d)(2) of the Exchange Act) (other than any subsidiary of the Company, any
employee benefit plan of the Company or any of its subsidiaries, or any related
trust) is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities representing 20% or more of
the combined voting power for election of directors of the then outstanding
securities of the Company or any successor of the Company;

          (ii)   during any period of two consecutive years or less, individuals
who at the beginning of such period constituted the Board of Directors of the
Company cease, for any reason, to constitute at least a majority of the Board of
Directors, unless the election or nomination for election of each new director
was approved by a vote of at least two-thirds of the directors then still in
office who were directors at the beginning of the period or whose election or
nomination for election was so approved; or

          (iii)  the stockholders of the Company approve any a merger,
reorganization, consolidation, or similar transaction, a plan or agreement for
the sale or other disposition of assets which, as of the date of the Company's
most recent annual or quarterly consolidated financial statements, accounted for
50% or more of the net book value of the Company's consolidated assets or 50% or
more of the Company's consolidated revenues, or a plan of liquidation of the
Company (any of the foregoing, a "Reorganization Transaction") that, based on
information included in the proxy and other materials distributed by the Company
to its stockholders in connection with the solicitation of such stockholder
approval, is not expected to qualify as an Exempt Reorganization Transaction.
"Exempt Reorganization Transaction" means a Reorganization Transaction that
results in the persons who were the direct or indirect owners of the outstanding
voting securities of the Company immediately before such Reorganization
Transaction becoming, immediately after the consummation of such Reorganization
Transaction, the direct or indirect beneficial owners of voting securities
representing more than 70% of the combined voting power of the then-outstanding
voting securities of the surviving corporation, in substantially the same
respective proportions as such persons' ownership of the voting securities of
the Company immediately before such Reorganization Transaction.

     14.  Stock purchased for investment. Shares purchased under the options
          ------------------------------
shall be purchased for investment and without present intention of resale,
unless, in the opinion of counsel for the Company, the shares may be purchased
without investment representation. Where an investment representation or other
restrictive representation or agreement is deemed necessary, the Committee may
require a written representation or agreement to that effect by the optionee at
the time the option is granted or exercised.

     15.  Term of options. Except as provided in Subsections 9(a) and 9(b), the
          ---------------
term of each option granted hereunder shall be for a period of no more than 10
years from the Option Date, and shall be subject to earlier termination as
hereinbefore provided; however, the

                                       -6-

<PAGE>

Committee may in its discretion extend the term of each option beyond ten years
from the Option Date, but in no event beyond 15 years from the Option Date.

     16.  Exercise of options.
          -------------------

          (a)  Subject to the provisions of Section 9 and Subsections 16(b) and
16(c), each option granted hereunder shall be exercisable in four equal biennial
installments, commencing on the first anniversary of the date of grant.

          (b)  The Board (or if delegated by the Board to the Committee, the
Committee) may specify a different exercise schedule or schedules for all or any
group or groups of employees to whom grants are made hereunder.

          (c)  The Committee, in its sole discretion, shall have the authority
to accelerate on an individual by individual basis, the time at which options or
any part thereof become exercisable to such earlier date or dates as determined
by the Committee. The Board (or if delegated by the Board to the Committee, the
Committee) shall have the authority to accelerate the time or times at which all
or any part of the options of all or any group of employees may be exercised.

          (d)  The Committee, in its sole discretion, shall have the authority
to extend on an individual by individual basis the period of time during which
options or installments or any part thereof which have not been exercised may be
exercised. The Board (or if delegated by the Board to the Committee, the
Committee) shall have the authority to extend the period of time during which
all or any part of the options or installments of all or any group of employees
may be exercised.

          (e)  An optionee may exercise the option (or a part thereof) in whole
or in part at any time commencing on the date the option (or such part) becomes
exercisable. An option shall be exercised by delivery of notice of intent to
exercise the option with respect to a specific number of option shares. Such
notice shall be in a manner specified by the Company. Except as provided in
Section 18 hereof, the purchase of any shares as to which an option shall be
exercised shall be paid in full at the time of the purchase. Payment of the
option exercise price shall be made in cash or, in whole or in part, in common
stock of the Company valued at fair market value.

          An optionee shall not, by reason of any option granted hereunder, have
any right of a stockholder of the Company with respect to the shares covered by
his option until such shares have been issued to him. Any of the provisions of
this Section 16 to the contrary notwithstanding, except as provided in
Subsections 9(a), 9(b) or Section 15, in no event shall any option be exercised
after 10 years from the Option Date.

     17.  Stock option plans of foreign subsidiaries. The Committee may, in its
          ------------------------------------------
sole discretion, authorize any foreign subsidiary to adopt a plan for granting
options to purchase shares of common stock of the Company ("Foreign Option
Plan"). All grants of options under

                                       -7-

<PAGE>

such Foreign Option Plans shall be treated as grants under the Plan. Such
Foreign Option Plans shall have such terms and provisions as the Committee
permits not inconsistent with the provisions of the Plan and which may be more
restrictive than those contained in the Plan. Options granted under such Foreign
Option Plans shall be governed by the terms of the Plan except to the extent
that the provisions of the Foreign Option Plans are more restrictive than the
terms of the Plan in which cash such terms of the Foreign Option Plans shall
control.

     18.  Loans and guarantees. The Board (or, if delegated by the Board to the
          --------------------
Committee, the Committee) may, in its discretion, allow an optionee to defer all
or any portion of the option exercise price or may cause the Company to
guarantee a loan from a third party to the optionee, in an amount equal to all
or any portion of the option exercise price. Any such payment deferral by the
Company pursuant to this Section 18 shall be for such periods, at such interest
rates and on such other terms and conditions as the Board (or, if delegated to
the Committee, the Committee) may determine. Notwithstanding the foregoing, an
optionee shall not be entitled to defer the payment of the option exercise price
unless the optionee (a) has a binding obligation to pay the portion of the
option exercise price which is deferred and (b) pays at the time of exercise a
minimum amount, with respect to the shares to be granted upon exercise, equal to
the amount determined pursuant to resolution of the Board to be capital within
the meaning of Section 154 of the Delaware General Corporation Law.

     19.  Substituted options. In the event the Committee cancels with the
          -------------------
consent of an optionees any option granted under this Plan or any other Stock
Option Plan, and a new option is substituted therefor, the Option Date of the
cancelled option shall be the date used to determine the exercisability of the
new substituted option under Section 16 hereof so that the optionee may exercise
the substituted option in the same percentages and at the same times as if the
optionee has held the substituted option since the Option Date of the cancelled
option. This Section 19 shall be effective with respect to all options granted
on or after October 25, 1976, in substitution of cancelled options.

     20.  Elective Share Withholding.
          --------------------------

          (a)  Subject to Section 20(b), an optionee may elect the withholding
("Share Withholding") by the Company of a portion of the shares otherwise
deliverable to such optionee upon the exercise of an option (each a "Taxable
Event") having a fair market value equal to the minimum amount necessary to
satisfy required federal, state, or local withholding tax liability attributable
to the Taxable Event.

          (b)  Each Share Withholding election by an optionee shall be subject
to the following restrictions:

               (i)    any optionee's election shall be subject to the
Committee's right to revoke such election of Share Withholding by such optionee
at any time before the optionee's election if the Committee has reserved the
right to do so in the option agreement; and

               (ii)   the optionee's election shall be irrevocable.

                                       -8-

<PAGE>

          Executed this 31st day of October 2001.

                                              McDONALD'S CORPORATION

                                                  Stanley R. Stein
                                              ----------------------------------
                                              By: Stanley R. Stein
                                                  Executive Vice President

                                       -9-

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