Document:

EXHIBIT 4(c)

 

 

SUPPLEMENTAL INDENTURE NO. 9

 

BY

 

AND

 

BETWEEN

 

McDONALD’S CORPORATION

 

AND

 

U.S. BANK NATIONAL ASSOCIATION

(formerly, First Union National Bank),

as Trustee

 

 

Dated September 28, 2009

 

 

SUPPLEMENTAL TO SENIOR DEBT
SECURITIES INDENTURE

DATED AS OF OCTOBER 19, 1996

 

 

 

McDONALD’S
CORPORATION

SUPPLEMENTAL INDENTURE NO. 9

Dated September 28, 2009

Medium-Term
Notes, Due from One Year to 60 Years from Date of Issue

Supplemental Indenture No. 9, dated September 28,
2009, by and between McDONALD’S CORPORATION, a corporation organized and
existing under the laws of the State of Delaware (hereinafter sometimes
referred to as the “Company”), and
U.S. BANK NATIONAL ASSOCIATION (formerly, First Union National Bank), a
national banking association authorized to accept and execute trusts
(hereinafter sometimes referred to as the “Trustee”).

 

W I T N E S S
E T H:

 

WHEREAS, The Company and the Trustee have
executed and delivered a Senior Debt Securities Indenture, dated as of October 19,
1996 (as amended or supplemented from time to time, the “Indenture”);

 

WHEREAS, Section 10.01 of the Indenture
provides for the Company, when authorized by its Board of Directors, and the
Trustee to enter into an indenture supplemental to the Indenture to establish
the form or terms of Debt Securities, as permitted by Sections 2.01 and 2.02 of
the Indenture; and

 

WHEREAS, Sections 2.01 and 2.02 of the
Indenture provide for Debt Securities of any series to be established pursuant
to an indenture supplemental to the Indenture;

 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE
WITNESSETH:

 

For and in consideration of the premises and
the purchase of the series of Debt Securities provided for herein, it is
mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of such series of Debt Securities, as follows:

 

ARTICLE
ONE

RELATION TO INDENTURE; DEFINITIONS

 

SECTION 1.01.   This
Supplemental Indenture No. 9 constitutes an integral part of the
Indenture.

 

SECTION 1.02.   (a)  For
all purposes of this Supplemental Indenture No. 9, except as otherwise
expressly provided or unless the context otherwise requires, all capitalized
terms used and not defined herein shall have the meanings assigned to them in
the Indenture or in Exhibits A and B hereto.

 

(b)      All references
herein to Articles, Sections and Exhibits, unless otherwise specified, refer to
the corresponding Articles, Sections or Exhibits of this Supplemental Indenture
No. 9; and

 

(c)      The
terms “hereof,” “herein,” “hereto,” “hereunder” and “herewith” refer to this
Supplemental Indenture No. 9.

 

 

ARTICLE
TWO

THE SERIES OF DEBT SECURITIES

 

SECTION 2.01.   (a)  There
shall be a series of Debt Securities issuable in registered form (the “Notes”) and designated the “Medium-Term Notes, Due from One
Year to 60 Years from Date of Issue”. 
The Notes shall be issuable without limitation as to the aggregate
principal amount thereof.

 

(b)      Each
Note shall bear interest either at a fixed rate (a “Fixed Rate
Note”), which may be zero in the case of Original Issue Discount
Notes (as defined below), or at a floating rate (a “Floating
Rate Note”) or at a rate determined by reference to an Index (as
defined below) in the case of certain Indexed Notes (as defined below).

 

SECTION 2.02.   Fixed Rate Notes
and Floating Rate Notes shall contain substantially the terms and provisions
set forth in either the form of Fixed Rate Note or the form of Floating Rate
Note attached as Exhibits A and B, respectively, or such other forms of Notes
specified in an Officers’ Certificate pursuant to duly adopted resolutions of
the Board of Directors of the Company. 
All of the terms and provisions of such Notes are hereby incorporated by
reference herein.

 

SECTION 2.03.   In addition to
the terms described in Section 2.02, a Note shall contain the following
terms to be specified in a Pricing Supplement:

 

(a)        the principal amount and currency (which
may be U.S. dollars or one or more foreign currencies, including the Euro, as
designated by the Company (the “Specified Currency”))
for such Note (and, if the Specified Currency is other than U.S. dollars,
certain other terms relating to such Note and such Specified Currency,
including the authorized denominations of such Note);

 

(b)        whether such Note is a Fixed Rate Note,
a Floating Rate Note or an Indexed Note as to which interest is determined by
reference to an Index;

 

(c)        the price (expressed as a percentage of
the aggregate principal amount thereof) at which such Note will be issued (the “Issue Price”);

 

(d)        the date on which such Note will be
issued (the “Original Issue Date”);

 

(e)        the date on which such Note will mature
(the “Stated Maturity”);

 

(f)         if such Note is a Fixed Rate Note, the
rate per annum at which such Note will bear interest, if any, and the dates on
which interest will be payable if other than February 15 and August 15
(each an “Interest Payment Date”);

 

(g)        if such Note is a Floating Rate Note,
the Base Rate, the Initial Interest Rate, the Interest Reset Period, the
Interest Payment Dates, the Maximum Interest Rate, if any, the Minimum Interest
Rate, if any, the Spread or Spread Multiplier, if any (all as defined in
Sections 2.02 and 2.06), and any other terms relating to the particular method
of calculating the interest rate for such Note;

 

(h)        whether such Note is an Original Issue
Discount Note;

 

(i)         if such Note is an Indexed Note, the
manner in which the principal amount of the Note payable at Stated Maturity
and/or the interest amount payable will be determined (other than as described
in Section 2.07);

 

2

 

(j)         whether such Note may be redeemed at
the option of the Company, or repaid at the option of the Holder, prior to
Stated Maturity and, if so, the provisions (other than the redemption and
prepayment provisions specified in Sections 2.02) relating to such redemption
or repayment, including, in the case of an Original Issue Discount
Note, Indexed Note or Amortizing Note (as defined below), the information
necessary to determine the amount due upon redemption or repayment;

 

(k)        if such Note is an Amortizing Note,
information necessary to determine the repayment schedule, including the manner
in which payments thereon will be applied to interest and the reduction of
unpaid principal; and

 

(l)         any other terms of such Note not inconsistent
with the provisions of the Indenture.

 

SECTION 2.04.   The Bank of New
York Mellon Trust Company, N.A., 2 North LaSalle Street, Suite 1020,
Chicago, Illinois, is hereby initially appointed as Authenticating Agent,
Registrar, Paying Agent and Calculation Agent with respect to the Notes.

 

SECTION 2.05.   With respect to
any Notes issued hereunder, (a) the term “Original
Issue Discount Note” shall mean (i) a Note, including any such
Note whose interest rate is zero, that has a stated redemption price at
maturity that exceeds its Issue Price by at least 0.25% of its aggregate
principal amount, multiplied by the number of full years from the Original
Issue Date to the Stated Maturity of such Note; and (ii) any other Note
designated by the Company as issued with original issue discount for U.S.
federal income tax purposes; and (b) the term “Yield to
Stated Maturity” shall mean the yield to Stated Maturity, calculated
at the time of issuance of the Notes or, if applicable, at the most recent
redetermination of interest on such Notes and calculated in accordance with
accepted financial practice.

 

SECTION 2.06.   (a) With
respect to any Notes issued hereunder, the term “Indexed Note”
shall mean a Note, the principal amount payable at Stated Maturity of which (the
“Indexed Principal Amount”) and/or the
interest amount payable on which is determined by reference to a measure (the “Index”) which will be related to (i) the rate of
exchange between the Specified Currency for such Note and the other currency or
composite currency (the “Index Currency”)
specified in such Indexed Note (such Indexed Note, “Currency
Indexed Note”); (ii) the difference in the price of a specified
commodity (the “Indexed Commodity”) on specified
dates (such Indexed Note, “Commodity Indexed Note”);
(iii) the difference in the level of a specified stock index (the “Stock Index”), which may be based on U.S. or foreign stocks,
on specified dates (such Indexed Note, “Stock Indexed Note”);
or (iv) such other objective price or economic measures as are described
in such Indexed Note.

 

(b)      Unless
otherwise specified in an Indexed Note, interest on such Indexed Note will be
payable by the Company based on the amount designated therein as the “Face Amount” of such Indexed Note. Such Indexed Note will describe
whether the principal amount of such Indexed Note that would be payable upon
redemption or repayment prior to Stated Maturity will be the Face Amount of
such Indexed Note, the Indexed Principal Amount of such Indexed Note at the
time of redemption or repayment, or another amount described in such Indexed
Note.

 

SECTION 2.07.   With respect to
any Notes issued hereunder, the term “Amortizing Notes”
shall mean any Note, payments in respect of which represent interest due and
the reduction of unpaid principal, as provided in such Amortizing Note.

 

SECTION 2.08.   Any interest on
any Note which is payable, but is not punctually paid or duly provided for, on
any Interest Payment Date (herein called “Defaulted Interest”)
shall forthwith cease to be payable to the Holder on the relevant Regular
Record Date by virtue of having been such Holder; and such 

 

3

 

Defaulted Interest may be paid by the Company, at its election in each
case, as provided in clause (a) and clause (b) below:

 

(a)        The Company may elect to make payment of
any Defaulted Interest to the Persons in whose names the Notes are registered
at the close of business on a special record date (“Special
Record Date”) for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Note
and the date of the proposed payment, and at the same time the Company shall
deposit with the Trustee or any paying agent designated by the Company an
amount of money equal to the aggregate amount proposed to be paid in respect of
such Defaulted Interest or shall make arrangements satisfactory to the Trustee
or with any paying agent designated by the Company for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Persons entitled to such Defaulted Interest as in this Section provided.  Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more
than 15 nor less than 10 days prior to the date of the proposed payment and not
less than 10 days after the receipt by the Trustee of the notice of the
proposed payment.  The Trustee shall
promptly notify the Company of such Special Record Date and, in the name and at
the expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be mailed, first class
postage prepaid, to each Holder of Notes at his address as it appears in the
Debt Security Register, not less than 10 days prior to such Special Record
Date.  Notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor having been mailed
as aforesaid, such Defaulted Interest shall be paid to the Persons in whose
names the Notes are registered on such Special Record Date and shall no longer
be payable pursuant to the following clause (b).

 

(b)        The Company may make payment of any
Defaulted Interest in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Notes may be listed, and
upon such notice as may be required by such exchange, if, after notice given by
the Company to the Trustee of the proposed payment pursuant to this clause,
such payment shall be deemed practicable by the Trustee.

 

(c)        Subject to the foregoing provisions of
this Section, each Note delivered under this Supplemental Indenture No. 9
upon transfer of or in exchange for or in lieu of any other Note shall carry
the rights to interest accrued and unpaid, and to accrue, which were carried by
such other Note.

 

SECTION 2.09.   With respect to
any Notes issued hereunder, the Notes, as a whole or in part, are subject to
redemption, at any time, at the election of the Company if the Company becomes
obligated to, or there is a material probability that the Company will become
obligated to, withhold or deduct for, or on account of, any present or future
taxes, duties, assessments or governmental charges of whatever nature imposed
or levied on payments in respect of such Notes, by or on behalf of any
governmental authority.  Any such
redemption shall be done in accordance with Article Three of the
Indenture.

 

SECTION 2.10.   The Place of
Payment for the Notes shall be both The City of New York, New York, and The
City of Philadelphia, Pennsylvania.

 

SECTION 2.11.   The terms and
provisions contained in the form of the Notes attached as Exhibits A and B
shall constitute, and are hereby expressly made, a part of the Indenture and,
to the extent applicable, the Company and the Trustee, by their execution and
delivery hereof, expressly agree to such terms and provisions and to be bound
thereby.

 

4

 

ARTICLE
THREE

MISCELLANEOUS

 

SECTION 3.01.   The recitals of
fact herein and in the Notes shall be taken as statements of the Company and
shall not be construed as made by the Trustee.

 

SECTION 3.02.   This
Supplemental Indenture No. 9 shall be construed in connection with and as
a part of the Indenture.

 

SECTION 3.03.   (a)  If any
provision of this Supplemental Indenture No. 9 limits, qualifies or
conflicts with another provision of the Indenture required to be included in
indentures qualified under the Trust Indenture Act of 1939 (as in effect on the
date of this Supplemental Indenture No. 9) by any of the provisions of
Sections 310 to 317, inclusive, of the Trust Indenture Act of 1939, such
required provisions shall control.

 

(b)      In case
any one or more of the provisions contained in this Supplemental Indenture No. 9
or in the Notes issued hereunder should be invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein and therein shall not in any way be affected,
impaired, prejudiced or disturbed thereby.

 

SECTION 3.04.   Whenever in this
Supplemental Indenture No. 9 either of the parties hereto is named or
referred to, this shall be deemed to include the successors or assigns of such
party, and all the covenants and agreements in this Supplemental Indenture No. 9
contained by or on behalf of the Company or by or on behalf of the Trustee
shall bind and inure to the benefit of the respective successors and assigns of
such parties, whether so expressed or not. Nothing in this Supplemental
Indenture No. 9 or the Notes, expressed or implied, shall give to any
Person, other than the parties hereto, their successors hereunder and the
Holders of the Notes, any benefit or any legal or equitable right, remedy or
claim under this Supplemental Indenture No. 9.

 

SECTION 3.05.   (a)  This
Supplemental Indenture No. 9 may be executed in any number of
counterparts, each of which so executed shall be deemed an original, but all such
counterparts shall together constitute but one and the same instrument.

 

(b)      The
descriptive headings of the several Articles of this Supplemental Indenture No. 9
were formulated, used and inserted herein for convenience only and shall not be
deemed to affect the meaning or construction of any of the provisions hereof.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

5

 

IN WITNESS WHEREOF, McDONALD’S CORPORATION
has caused this Supplemental Indenture No. 9 to be signed, acknowledged
and delivered by one of its authorized directors or officers and the same to be
attested by its Secretary or Assistant Secretary, and U.S. BANK NATIONAL
ASSOCIATION, as Trustee, has caused this Supplemental Indenture No. 9 to
be signed, acknowledged and delivered by one of its Vice Presidents and the
same to be attested by one of its Authorized Officers, all as of the day and
year first written above.

 

 

	
   

  	
   

  	
  McDONALD’S
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Michael D. Richard

  
	
   

  	
   

  	
   

  	
  Michael
  D. Richard

  
	
   

  	
   

  	
   

  	
  Corporate
  Senior Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Gloria Santona

  	
   

  	
   

  
	
  Gloria
  Santona  

  	
   

  	
   

  
	
  Corporate
  Executive Vice President,  

  	
   

  	
   

  
	
  General
  Counsel and Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION,

  
	
   

  	
   

  	
  as
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  George J. Rayzis

  
	
   

  	
   

  	
   

  	
  George
  J. Rayzis

  
	
   

  	
   

  	
   

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Ralph E. Jones

  	
   

  	
   

  
	
  Ralph
  E. Jones

  	
   

  	
   

  
	
  Vice
  President

  	
   

  	
   

  

 

6

 

EXHIBIT A

 

Form of Fixed Rate Note

 

FIXED RATE NOTE

 

	
  REGISTERED

  	
   

  	
  PRINCIPAL AMOUNT

  
	
   

  	
   

  	
   

  
	
  No.

  	
  McDONALD’S CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MEDIUM-TERM NOTE

  	
   

  
	
   

  	
  (FIXED RATE)

  	
  CUSIP

  

 

Due
From One Year To 60 Years From Date Of Issue

 

 

IF THE REGISTERED OWNER OF THIS NOTE (AS INDICATED BELOW) IS THE
DEPOSITORY TRUST COMPANY  (“DTC”) OR A
NOMINEE OF DTC, THIS NOTE IS A GLOBAL SECURITY AND THE FOLLOWING LEGEND IS
APPLICABLE: UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.  UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES REPRESENTED
HEREBY IN DEFINITIVE REGISTERED FORM, THIS REGISTERED GLOBAL SECURITY MAY NOT
BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE OF DTC, OR BY A NOMINEE OF
DTC TO DTC OR ANOTHER NOMINEE OF DTC, OR BY DTC OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

 

IF APPLICABLE, THE “TOTAL AMOUNT OF OID,” “YIELD TO STATED MATURITY”
AND “INITIAL ACCRUAL PERIOD OID” (COMPUTED UNDER THE APPROXIMATE METHOD)
BELOW WILL BE COMPLETED SOLELY FOR THE PURPOSES OF APPLYING THE FEDERAL
INCOME TAX ORIGINAL ISSUE DISCOUNT (“OID”) RULES.

 

	
  Issue
  Price:

  	
   

  	
  %

  	
   

  	
  Original
  Issue Date:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest
  Rate:

  	
   

  	
  %

  	
   

  	
  Stated
  Maturity:

  

 

Specified Currency:

	
  (Applicable
  only if other than U.S. dollars)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Option
  to Receive Payments in Specified Currency:  
  

  	
  o Yes

  	
  o  No

  
	
  (Applicable only if Specified Currency is other
  than U.S. dollars)

  	
   

  

 

Authorized Denominations:

	
  (Applicable
  only if other than U.S.$1,000 and increments of U.S.$1,000, or if Specified Currency
  is other than U.S. dollars)

  

 

Method of Payment of Principal:

	
  (Applicable
  only if other than immediately available funds)

  

 

A-1

 

Interest Payment Dates:

(Applicable only if other than February 15 and August 15 of
each year)

 

Regular Record Dates:

(Applicable only if other than February 1 and August 1 of
each year)

 

Optional Redemption:

 

Optional Redemption Dates:

 

Redemption Prices:

 

o                                          The Redemption Price shall
initially be    % of the principal amount
of the Note to be redeemed and shall decline at each anniversary of the initial
Optional Redemption Date by    % of the
principal amount to be redeemed until the Redemption Price is 100% of such
principal amount; provided, however,
that if this Note is an Original Issue Discount Note, the Redemption Price
shall be the Amortized Face Amount of the principal amount to be redeemed.

 

o              Other:

 

Sinking Fund:

 

Sinking Fund Dates:

 

Sinking Fund Amounts:

 

Amortizing Note:  o Yes  o  No

 

Amortizing Schedule:

 

Optional Repayment:

 

Optional Repayment Dates:

 

Optional Repayment Prices:

 

Original Issue Discount Note:

 

Total Amount of OID:

 

Yield to Stated Maturity:

 

Initial Accrual Period OID:

 

Other Provisions:

 

A-2

 

McDONALD’S CORPORATION, a corporation duly organized
and existing under the laws of the State of Delaware, United States of America
(herein called the “Company”, which
term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to [Cede &
Co.] [Name of registered holder] 

 

or registered assigns, on
the Stated Maturity shown above, the principal sum specified above (or so much
thereof as shall then remain outstanding) in the currency specified above (the “Specified Currency”) and to pay interest on the principal
sum outstanding from time to time in the Specified Currency at the Interest
Rate shown above from and including the Original Issue Date shown above or from
and including the most recent date to which interest has been paid or duly
provided for, semiannually in arrears, unless otherwise specified on the face
hereof, on but excluding February 15 and August 15 of each year and
at but excluding Maturity (each such day being an “Interest
Payment Date”), until the principal hereof is paid or duly provided
for.  Unless otherwise specified on the
face hereof, interest on this Note, if any, will be computed on the basis of a
360-day year of twelve 30-day months. 
The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date as specified on the face hereof shall, as provided in
such Indenture, be paid to the person in whose name this Note is registered at
the close of business on the Regular Record Date for such interest as which,
unless otherwise specified on the face hereof, shall be the February 1 or August 1
(whether or not a Business Day), as the case may be, next preceding an Interest
Payment Date.  Notwithstanding the
foregoing, if this Note is issued between a Regular Record Date and the related
Interest Payment Date, the interest so payable for the period from the Original
Issue Date to such Interest Payment Date shall be paid on the next succeeding
Interest Payment Date to the Registered Holder hereof on the related Regular
Record Date.

 

If any payment date falls on a day that is
not a Business Day (as defined below), the required payment of principal,
premium (if any) and/or interest will be made on the next succeeding Business
Day as if made on the date such payment was due, and no interest shall accrue
on such required payment for the period from and after the payment due date to
the date of such payment on the next succeeding Business Day.  For purposes of this Note, “Business Day” means any day, other than Saturday or Sunday,
that is (i) neither a legal holiday nor a day on which banking
institutions are authorized or required by law, regulation or executive order
to close in (a) The City of New York, (b) the City of Chicago, or (c) if
the Specified Currency for this Note is other than U.S. dollars or Euro, the
Principal Financial Center (as defined below) of the country issuing such
currency; or (ii) if the Specified Currency for this Note is Euro, a day
on which the TARGET System is operating or in any other place or any other days
as may be specified herein.  “Principal Financial Center” will be the capital city of the
country of the Specified Currency, except that with respect to Australian
dollars, Canadian dollars, U.S. dollars and Swiss francs, the Principal
Financial Center shall be Sydney, Toronto, The City of New York and Zurich,
respectively.

 

The principal hereof and any premium and
interest hereon are payable by the Company in the Specified Currency shown
above.  If the Specified Currency shown
above is other than U.S. dollars, the Company or the Paying Agent will (unless
otherwise specified on the face hereof) arrange to convert all payments in
respect hereof into U.S. dollars in the manner described on the reverse
hereof.  The Holder hereof may, if so
indicated above, elect to receive all or a specified portion of any payments in
respect hereof in the Specified Currency by delivery of a written notice to the
Paying Agent on or prior to the applicable record date or at least 15 calendar
days prior to the Stated Maturity, as the case may be.  Such election will remain in effect until
revoked by written notice to the Paying Agent received on or prior to the
applicable record date or at least 15 calendar days prior to the Stated
Maturity, as the case may be.  If the
Company determines that the Specified Currency is not available to the Company
for making payments in respect hereof due to the imposition of exchange
controls or other circumstances beyond the Company’s control, then the Holder
hereof may not so elect to receive payments in the Specified Currency, and any
such outstanding election shall be automatically suspended, and payments shall
be in U.S. dollars, until the Company determines that the Specified Currency is
again available to the Company for making such payments.

 

If this Note is a Certificated Note, payments
of interest in U.S. dollars (other than interest payable at Maturity) will be
made by check mailed to the address of the Person entitled thereto as such
address shall appear on the Debt Security Register on the applicable Regular
Record Date, provided that, if the Holder
hereof is the Holder of U.S.$10,000,000 (or the equivalent thereof in a
Specified Currency other than U.S. dollars determined

 

A-3

 

as provided on the reverse
hereof) or more in aggregate principal amount of Notes of like tenor and term,
such U.S. dollar interest payments will be made by wire transfer of immediately
available funds, but only if appropriate wire transfer instructions have been
received in writing by the Paying Agent not less than 15 calendar days prior to
the applicable Interest Payment Date. 
Simultaneously with any election by the Holder hereof to receive
payments in respect hereof in the Specified Currency (if other than U.S.
dollars), such Holder shall provide appropriate wire transfer instructions to
the Paying Agent and all such payments will be made by wire transfer of
immediately available funds to an account maintained by the payee with a bank
located outside the United States. 
Unless otherwise specified on the face hereof, the principal hereof and
any premium and interest hereon payable at Maturity will be paid in immediately
available funds upon surrender of this Note at the Place of Payment.  If this Note is a Global Security, beneficial
owners of interest herein will be paid in accordance with DTC’s and its
participants’ procedures in effect from time to time.

 

Reference is hereby made to the further
provisions of this Note set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth in this
place.

 

THIS NOTE SHALL BE GOVERNED BY,
AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE
OF ILLINOIS.

 

Unless the Certificate of Authentication
hereon has been executed by the Trustee referred to on the reverse hereof (or
by an Authenticating Agent, as provided in the Indenture) by manual signature,
this Note shall not be entitled to any benefit under the Indenture or be valid
or obligatory for any purpose.

 

A-4

 

IN WITNESS WHEREOF, McDonald’s Corporation
has caused this Note to be signed in its corporate name by the Chairman of the
Board, Vice Chairman of the Board, Chief Executive Officer, President, Chief
Financial Officer or Treasurer manually or in facsimile, and a facsimile of its
corporate seal to be imprinted hereon and attested by the manual or facsimile
signature of its Secretary or one of its Assistant Secretaries.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [SEAL]

  	
   

  	
  McDONALD’S
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
						

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Debt
Securities of the series designated herein provided for in the within mentioned
Indenture.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION,

  
	
   

  	
   

  	
  as
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE
  BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

  
	
   

  	
   

  	
  as
  Authenticating Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-5

 

McDONALD’S CORPORATION

MEDIUM-TERM NOTE

(FIXED RATE)

 

This Note is one of a single series of duly
authorized issue of debentures, notes or other evidences of indebtedness of the
Company (the “Debt Securities”) of a single
series hereinafter specified, all issued or to be issued in one or more series
under a Senior Debt Securities Indenture, dated as of October 19, 1996
(herein called the “Indenture”),
between the Company and U.S. Bank National Association (formerly, First Union
National Bank), as trustee (herein called the “Trustee”,
which term includes any successor trustee under the Indenture) to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Debt Securities
and of the terms upon which the Debt Securities are, and are to be,
authenticated and delivered.  The Debt
Securities may be issued in one or more series, which different series may be
issued in various currencies, may be issued in various aggregate principal
amounts, may mature at different times, may bear interest (if any) at different
rates, may be subject to different redemption provisions (if any), may be
subject to different sinking, purchase or analogous funds (if any), may be
subject to different covenants and Events of Default and may otherwise vary as
in the Indenture provided.  This Debt
Security is one of the series designated on the face hereof, which may be issued
without limitation as to aggregate principal amount.  The U.S. dollar equivalent of the public
offering price or purchase price of Notes denominated in foreign currency will
be determined by an agent designated by the Company, which initially shall be The
Bank of New York Mellon Trust Company, N.A. (the “Paying Agent”),
on the basis of the noon buying rate in The City of New York for cable
transfers in foreign currencies as certified for customs purposes by the
Federal Reserve Bank of New York (the “Market Exchange Rate”)
for such currencies on the applicable trade dates.

 

“Maturity”, when
used with respect to this Note, means the date on which the principal of this
Note or an installment of principal becomes due and payable as provided herein
or in the Indenture, whether at Stated Maturity or by declaration of
acceleration, call for redemption or otherwise.

 

Unless otherwise specified on the face hereof
in the case of Notes represented by a Global Security, the authorized
denominations of Notes denominated in U.S. dollars will be U.S.$1,000 and any
larger amount that is a multiple of U.S.$1,000. 
The authorized denominations of Notes denominated in a currency other
than U.S. dollars will be as set forth on the respective faces thereof.

 

Each Note will be issued initially as either
a Book-Entry Note or a Certificated Note.

 

If the Specified Currency is other than U.S.
dollars, the amount of any U.S. dollar payment to be made in respect hereof
will be determined by the Paying Agent based on the highest firm bid quotation
in The City of New York expressed in U.S. dollars received by the Paying Agent
at approximately 11:00 A.M., New York City time, on the second Business
Day before the applicable payment date (or, if no such rate is quoted on such
date, the Paying Agent will use the last date on which such rate was quoted),
from three (or, if three are not available, then two) recognized foreign
exchange dealers in New York City (which may include the agents, their
affiliates or the Paying Agent) selected by the Paying Agent and approved by
the Company for the purchase by the quoting dealer, for settlement on such
payment date, of the aggregate amount of the Specified Currency payable on such
payment date in respect of all Notes denominated in such Specified Currency.  All currency exchange costs will be borne by
the Holders of such Notes by deductions from such U.S. dollar payments.  If at least two such bid quotations are not
available, then such payments will be made in the Specified Currency, unless
the Specified Currency is 

 

A-6

 

unavailable due to the
imposition of exchange controls or to other circumstances beyond the Company’s
control, in which case payment will be made as described in the next paragraph.

 

If the Specified Currency is other than U.S.
dollars and this Note is a Global Note, the Holder of a beneficial interest in
this Global Note may elect to receive a payment or payments in the Specified
Currency by notifying the DTC participant through which its Notes are held on
or prior to the applicable Record Date of (1) the Holder’s election to
receive all or a portion of the payment in the Specified Currency, and (2) wire
transfer instructions to an account located outside of the United States.  DTC must be notified of an election and wire
transfer instructions (1) on or prior to the third New York Business Day
(as defined below) after the Record Date for any payment of interest, and (2) on
or prior to the tenth New York Business Day after the Record Date for any
payment of principal.  DTC will notify
the Paying Agent of an election and wire transfer instructions (1) on or
prior to 5:00 P.M. New York City time on the fifth New York Business Day
after the Record Date for any payment of interest, and (2) on or prior to
5:00 P.M. New York City time on the twelfth New York Business Day after
the Record Date for any payment of principal. 
If complete instructions are forwarded to DTC through DTC participants
and by DTC to the Paying Agent on or prior to such dates, such Holder will
receive payment in the Specified Currency outside of DTC; otherwise, only U.S.
dollar payments will be made by the Paying Agent to DTC.

 

The term “New York Business Day”
means any day other than a Saturday or Sunday or a day on which banking
institutions in the City of New York are authorized or required by law or
executive order to close.

 

Except as set forth below, if any payment in
respect hereof is required to be made in a Specified Currency other than U.S.
dollars and such currency is unavailable to the Company due to the imposition
of exchange controls or other circumstances beyond the Company’s control or is
no longer used by the government of the country issuing such currency (unless
otherwise replaced by the Euro) or for the settlement of transactions by public
institutions of or within the international banking community, then such
payment shall be made in U.S. dollars until such currency is again available to
the Company or so used.  The amount so
payable in such foreign currency shall be converted into U.S. dollars on the
basis of the most recently available Market Exchange Rate for such currency or
as otherwise indicated on the face hereof. 
Any payment made under such circumstances in U.S. dollars will not
constitute an Event of Default under the Indenture.

 

If the principal of and any interest and
premium, if any, on the Notes is payable in any Specified Currency other than
U.S. dollars and (i) the country of which such Specified Currency has been
a currency of legal tender for the payment of public and private debts (the “Currency Country”) becomes a Participating Member State (as
defined below), then the Company may, solely at its option and without the
consent of the Holders of such Notes or the need to amend the Indenture, on any
Interest Payment Date after the date on which such country has become a
Participating Member State has occurred, (such Interest Payment Date, a “Redenomination Date”), redenominate all of those Notes into
Euro upon the giving of not less than 30 days’ notice thereof in accordance
with the terms of such Notes, which notice shall set forth the manner in which
such redenomination shall be effected. 
If the Company elects to redenominate a tranche of Notes, the election
to redenominate will have effect as follows:

 

1.             each denomination will be deemed to
be denominated in such amount of Euro as is equivalent to its denomination or
the amount of interest in the Specified Currency at the Fixed Conversion Rate
(as defined below) adopted by the Council of the European Union for the
Specified Currency, rounded down to the nearest Euro 0.01;

 

A-7

 

2.             after the Redenomination Date, all
payments in respect of those Notes, other than payments of interest in respect of
periods commencing before the Redenomination Date, will be made solely in Euro
as though references in those Notes to the Specified Currency were to
Euro.  Payments will be made in Euro by
credit or transfer to a Euro account (or any other account to which Euro may be
credited or transferred) specified by the payee, or at the option of the payee,
by a Euro cheque;

 

3.             if those Notes bear interest at a
fixed rate and interest for any period ending on or after the Redenomination
Date is required to be calculated for a period of less than one year, it will
be calculated on the basis of the applicable fraction specified in the pricing
supplement; and

 

4.             such other changes shall be made to
the terms of those Notes as we may decide, after consultation with the Trustee,
and as may be specified in the notice, to conform them to conventions then
applicable to debt securities denominated in Euro or to enable those Notes to
be consolidated with other notes, whether or not originally denominated in the
Specified Currency or Euro.  Any such
other changes will not take effect until after they have been notified to the
Holders.

 

The definitions of Business Day and Market
Day that shall apply to the Notes for payments on or in respect thereof
following any redenomination thereof and for all other purposes under the Notes
and under the Indenture shall be (A) business day and market day
definitions for fixed or floating rate (as applicable) Euro-denominated debt
obligations issued in the Euromarkets and held in international clearing
systems which are consistent with existing or anticipated market practices as
determined by the Company or (B) if no such Business Day and Market Day
definitions are so determined, the definitions of Business Day and Market Day
which applied to such Notes before redenomination or (C) if the Company
would be unable to make payments on the Notes on the date that payment is
expressed to be due if (B) above were to apply, such other business day
and market day definitions as are determined by the Company.

 

“EMU” means
Economic and Monetary Union as contemplated by the Treaty of Rome;

 

“Euro” means the
single or unified currency to be introduced in the Participating Member States,
whether known as the Euro or otherwise;

 

“Fixed Conversion Rate”
with respect to any Specified Currency means the irrevocably fixed conversion
rate between the Euro and such Specified Currency adopted by the Council of the
European Union according to Article 109 1(4) first sentence of
the Treaty of Rome;

 

“Maastricht Treaty”
means the treaty on European Union which was signed in Maastricht on February 1,
1992 and came into force on November 1, 1993;

 

“Participating Member State”
means a member state of the European Union that adopts the Euro in accordance
with the Treaty of Rome; and

 

“Treaty of
Rome” means the Treaty of Rome of March 25, 1957, as amended by
various agreements, including the Treaty on European Union (1993), the Treaty
of Amsterdam (1999), the Treaty of Nice (2003) and as further amended, from
time to time.

 

The Company may, with the consent of the
Trustee, and without the need to obtain the consent of the Holders of any Note,
make any changes or additions to the terms of the Notes of a series which
correct any manifest error or any ambiguity or correct or supplement any
defective provisions described herein, and which changes or additions the
Company and the Trustee believe are not materially 

 

A-8

 

prejudicial to the interests
of the Holders of the Notes of such series. 
Any such change or addition shall be binding on the Company, the Holders
of the Notes of such series, the Trustee, the Paying Agents and any other agent
of the Company.  Any change or addition
shall be considered to be made by operation of the terms of the relevant
Notes.  The Company shall promptly give
notice of any such change or addition.

 

Except as provided in the Note or in the
Pricing Supplement with respect to the redenomination of the Notes into Euro,
the occurrence or non-occurrence of an EMU Event (as defined below) or the
entry into force of any law, regulation, directive or order requiring
redenomination to be undertaken on terms different than those described herein,
will not have the effect of altering any term of, or discharging or excusing
performance under, the Indenture or Notes nor give the Company, the Trustee or
the Holder of such Notes, the right unilaterally to alter or terminate the
Indenture or Notes or give rise to any Event of Default or otherwise be the
basis for any acceleration, early redemption, rescission, notice, repudiation,
adjustment or renegotiation of the terms of the Indenture or Notes.  The occurrence or non-occurrence of an EMU
Event will be considered to occur automatically pursuant to the terms of the
Notes. For purposes hereof, “EMU Event”
means any event associated with EMU in the European Community, including,
without limitation, each (and any combination) of (i) the fixing of
exchange rates between the currency of a Participating Member State and the
Euro or between the currencies of Participating Members States; (ii) the
introduction of the Euro as lawful currency in a Participating Member State; (iii) the
withdrawal from legal tender of any currency that, before the introduction of
the Euro, was lawful currency in any of the Participating Member States; or (iv) the
disappearance or replacement of a relevant rate option or other price source
for the national currency of any participating Member State, or the failure of
the agreed price or rate sponsor (or a successor sponsor) or screen provider to
publish or display the required information.

 

If so specified on the face hereof, the
Company may, at its option, redeem this Note in whole, or from time to time in
part in accordance with the procedures set forth in the Indenture, on the date
or dates designated as the Optional Redemption Date(s) on the face hereof,
at the Redemption Price(s) specified on the face hereof declining from a
specified premium, if any, to par, together with accrued interest to the
Optional Redemption Date.  The Company
may exercise such option by causing the Trustee or the Paying Agent to mail a
notice of such redemption at least 30 but not more than 60 days prior to the
applicable Optional Redemption Date.  In
the event of redemption of this Note in part only, a new Note or Notes for the
unredeemed portion hereof shall be issued in the name of the Holder hereof upon
the cancellation hereof.

 

If so specified on the face hereof, this Note
will be repayable prior to its Stated Maturity at the option of the Holder on
the Optional Repayment Date(s) shown on the face hereof at the Optional
Repayment Price(s) shown on the face hereof, together with accrued
interest to the date of repayment.  In
order for this Note to be repaid, the Paying Agent must receive at least 30 but
not more than 45 days prior to an Optional Repayment Date (i) this Note
with the form below entitled “Option to Elect Repayment” duly completed; or (ii) a
facsimile transmission or letter from a member of a national securities exchange
or the National Association of Securities Dealers, Inc. or a commercial
bank or trust company in the United States of America setting forth the name of
the Holder of this Note, the principal amount of the Note to be repaid, the
certificate number or a description of the tenor and terms of this Note, a
statement that the option to elect repayment is being exercised thereby and a
guarantee that this Note with the form below entitled “Option to Elect
Repayment” duly completed will be received by the Paying Agent not later than
five Business Days after the date of such facsimile transmission or
letter.  If the procedure described in
clause (ii) of the preceding sentence is followed, this Note with the form
duly completed must be received by the Paying Agent by such fifth Business
Day.  Any tender of this Note for
Repayment shall be irrevocable.  The
repayment option may be exercised by the Holder of this Note for less than the
entire principal amount of the Note, provided that
the principal amount of this Note remaining outstanding after repayment is an
authorized denomination.  Upon such
partial repayment, this 

 

A-9

 

Note shall be canceled and a
new Note or Notes for the remaining principal amount hereof shall be issued in
the name of the Holder of this Note.

 

Unless otherwise specified on the face
hereof, this Note will not be subject to any sinking fund.  Any such sinking fund shall be administered
in accordance with the terms specified on the face hereof and otherwise as set
forth in the Indenture.

 

Notwithstanding anything herein to the
contrary, if this Note is an Original Issue Discount Note, the amount payable
in the event of redemption or repayment prior to the Stated Maturity hereof, in
lieu of the principal amount due at the Stated Maturity hereof, shall be the
Amortized Face Amount of this Note as of the Optional Redemption Date or the
Optional Repayment Date, as the case may be. 
The “Amortized Face Amount” of this Note
shall be the amount equal to (a) the Issue Price (as set forth on the face
hereof) plus (b) that portion of the difference between the Issue Price
and the principal amount hereof that has accrued at the Yield to Stated
Maturity (as set forth on the face hereof) (computed in accordance with
generally accepted United States bond yield computation principles) at the date
as of which the Amortized Face Amount is calculated, but in no event shall the
Amortized Face Amount of this Note, if it is an Original Issue Discount Note,
exceed its principal amount.

 

If this Note is a Global Security, ownership
of beneficial interests herein will be limited to participants in DTC or
persons that hold interests through such participants, and the transfer of
beneficial interests herein will be effected only through records maintained by
DTC (and with respect to interests of participants in DTC) and by participants
in DTC or persons that may hold interests through such participants (with
respect to persons other than participants in DTC).

 

As provided in the Indenture and subject to
certain limitations therein set forth, this Note is exchangeable for a like
aggregate principal amount of Notes of different authorized denominations, as
requested by the Person surrendering the same.

 

If this Note is a Global Security, this Note
is exchangeable only if (x) DTC notifies the Company that it is unwilling
or unable to continue as depositary for this Note or if at any time DTC ceases
to be in good standing under the Securities Exchange Act of 1934, as amended,
and the Company does not appoint a successor depositary within 90 days after
the Company receives such notice or becomes aware that DTC is no longer in good
standing; or (y) the Company in its sole discretion determines that this
Note shall be exchanged for Certificated Notes in definitive form, provided
that the definitive Notes so issued in exchange for this Note shall be in
authorized denominations and be of like aggregate principal amount and tenor
and terms as the portion of this Note to be exchanged.  Except as provided above, owners of
beneficial interests in this Note (if a Global Security) will not be entitled
to have this Note or Notes represented by this Note registered in their names
or receive physical delivery of Notes in definitive form and will not be
considered the Holders hereof for any purpose under the Indenture.

 

As provided in the Indenture and subject to
certain limitations therein set forth, this Note is transferable on the Debt
Security register of the Company, upon surrender of this Note for registration
of transfer at the offices or agencies as may be designated and maintained by
the Company for such purpose in accordance with the provisions of the
Indenture, duly endorsed by or accompanied by a written instrument of transfer
in form satisfactory to the Company and the Debt Security registrar, duly
executed by the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Notes of this series, of authorized denominations and
for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

 

A-10

 

No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

 

The Company, the Trustee and any agent of the
Company or of the Trustee may treat the Person in whose name this Note is
registered as the owner hereof for the purpose of receiving payment as herein
provided and for all other purposes, whether or not this Note be overdue, and
neither the Company, the Trustee nor such agent shall be affected by notice to
the contrary.

 

If an Event of Default shall occur and be
continuing with respect to the Notes, the unpaid principal amount of the Notes
may be declared due and payable in the manner and with the effect provided in
the Indenture.

 

The Indenture contains provisions permitting
the Company and the Trustee, with the consent of the Holders of not less than
66 2/3% in aggregate principal amount of each series of the Debt Securities at
the time outstanding (as defined in the Indenture) to be affected (each series
voting as a class), evidenced as in the Indenture provided, to execute supplemental
indentures adding any provisions to or changing in any manner or eliminating
any of the provisions of the Indenture or of any supplemental indenture or
modifying in any manner the rights of the Holders of the Debt Securities of all
such series; provided, however,
that no such supplemental indenture shall, among other things, (i) extend
the fixed maturity of any Debt Security, or reduce the rate or extend the time
of payment of interest thereon, or reduce the principal amount or premium if
any, thereon, or make the principal thereof, or premium if any, or interest, if
any, thereon payable in any coin or currency other than that hereinabove
provided, without the consent of the Holder of each Debt Security so affected
or reduce the amount of principal of an Original Issue Discount Security that
would be due and payable upon acceleration of maturity thereof, or (ii) reduce
the aforesaid percentage of Debt Securities the Holders of which are required
to consent to any such supplemental indenture, without the consent of the
Holders of each Debt Security so affected. 
The Indenture also contains provisions permitting the Holders of a
majority in aggregate principal amount of the Notes at the time Outstanding, as
defined in the Indenture, on behalf of the Holders of all the Notes, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Notes issued upon the transfer hereof or in
exchange therefor or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note or upon any Note issued upon the transfer hereof
or in exchange therefor or in lieu hereof.

 

No reference herein to the Indenture and no
provision of this Note or of the Indenture shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the principal of
and interest on this Note at the times, places and rate, and in the coin and
currency, herein prescribed.

 

No recourse shall be made for the payment of
the principal of or the interest on this Note or for any claim based herein or
otherwise in any manner in respect hereof, or in respect of the Indenture,
against any incorporator, stockholder, officer or director, as such past,
present or future, of the Company or of any predecessor or successor
corporation, whether by virtue of any constitutional provision or statute or rule of
law, or by the enforcement of any assessment or penalty or in any other manner,
all such liability being expressly waived and released by the acceptance hereof
and as part of the consideration for the issue hereof.

 

All terms used in this Note that are defined
in the Indenture shall have the meanings assigned to them in the Indenture.

 

A-11

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

 

	
  TEN
  COM - as tenants in common

  	
   

  	
  UNIF
  GIFT MIN ACT -

  
	
   

  	
   

  	
  Custodian
  Under Uniform Gifts to Minors Act

  
	
  TEN
  ENT - as tenants by the entireties

  	
   

  	
         (Cust)               
  (Minor)

  
	
   

  	
   

  	
   

  	
   

  
	
  JT
  ENT - 

  	
  as
  joint tenants with right of survivorship and not as tenants in common

  	
   

  	
  (State)

  
					

 

Additional abbreviations may
also be used though not in the above list

 

	
   

  

 

OPTION TO ELECT REPAYMENT

 

The undersigned hereby irrevocably requests and instructs the Company
to repay $                    
principal amount of the within Note, pursuant to its terms, on the “Optional
Repayment Date” first occurring after the date of receipt of the within Note as
specified below, together with interest thereon accrued to the date of
repayment, to the undersigned at:

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Please
  Print or Type Name and Address of the Undersigned)

  	
   

  

 

and to issue to the undersigned, pursuant to the terms of the
Indenture, a new Note or Notes representing the remaining principal amount of
this Note.

 

For this Option to Elect Repayment to be effective, this Note with the
Option to Elect Repayment duly completed must be received by the Company within
the relevant time period set forth above at its office or agency in the Borough
of Manhattan, the City and State of New York, located initially at the office
of the Registrar at The Bank of New York Mellon Trust Company, N.A.,                         ,
New York, New York               ,
Attention:  Corporate Trust
Administration.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Note:  The signature to this Option to Elect
  Repayment must correspond with the name as written upon the face of the
  within Note in every particular without alteration or enlargement or any
  change whatsoever.

  

 

A-12

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

 

	
  Please
  Insert Social Security or Other

  	
   

  
	
          Identifying
  Number of Assignee:

  	
   

  	
   

  

 

Please Print or Typewrite Name and Address of Assignee:

 

	
   

  	
   

  

 

the within Instrument of McDONALD’S CORPORATION and all rights
thereunder, and hereby does irrevocably constitute and appoint

 

	
   

  	
  Attorney

  

 

to transfer such Note on the books of McDONALD’S CORPORATION with full
power of substitution in the premises.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  

 

 

NOTICE:  The signature to this
assignment must correspond with the name as it appears upon the face of the
Note in every particular, without alteration or enlargement or any change
whatsoever.

 

A-13

 

EXHIBIT
B

Form of Floating Rate
Note

 

	
   

  	
  FLOATING RATE NOTE

  	
   

  
	
  REGISTERED

  	
   

  	
  PRINCIPAL AMOUNT

  
	
   

  	
   

  	
   

  
	
  No.

  	
  McDONALD’S CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MEDIUM-TERM NOTE

  	
   

  
	
   

  	
  (FLOATING RATE)

  	
  CUSIP

  

 

Due from One Year to 60
Years from Date of Issue

 

IF THE REGISTERED OWNER OF THIS NOTE
(AS INDICATED BELOW) IS THE DEPOSITORY TRUST COMPANY  (“DTC”) OR A NOMINEE OF DTC, THIS NOTE IS A
GLOBAL SECURITY AND THE FOLLOWING LEGEND IS APPLICABLE: UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, TO COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO. HAS AN INTEREST HEREIN.  UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR
IN PART FOR SECURITIES REPRESENTED HEREBY IN DEFINITIVE REGISTERED FORM,
THIS REGISTERED GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE
BY DTC TO A NOMINEE OF DTC, OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF
DTC, OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITARY.

 

IF APPLICABLE, THE “TOTAL AMOUNT
OF OID,” “YIELD TO STATED MATURITY” AND “INITIAL ACCRUAL PERIOD OID” (COMPUTED
UNDER THE APPROXIMATE METHOD) SET FORTH BELOW WILL BE COMPLETED SOLELY FOR THE
PURPOSES OF APPLYING THE FEDERAL INCOME TAX ORIGINAL ISSUE DISCOUNT (“OID”)
RULES.

 

	
  Issue
  Price:

  	
   

  	
  %

  	
   

  	
  Original
  Issue Date:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial
  Interest Rate:

  	
   

  	
  %

  	
   

  	
  Stated
  Maturity:

  

 

Specified Currency:

(Applicable only if other than U.S. dollars)

 

	
  Option
  to Receive Payments in Specified Currency:

  	
   

  	
  o   Yes

  	
   

  	
  o   No

  
	
  (Applicable only if Specified Currency is other
  than U.S. dollars and if this Note is not a Book-Entry Note)

  

 

Method of Payment of Principal:

(Applicable only if other than immediately available funds)

 

Authorized
Denominations:

(Applicable only if other than U.S. $1,000 and increments of $1,000 or
if Specified Currency is other than U.S. dollars)

 

	
  Base
  Rate:

  	
  o  CD Rate

  	
   

  	
  o  CMT Rate

  	
   

  	
  o  Commercial Paper Rate

  	
   

  	
  o  Federal Funds Rate

  
	
   

  	
  o  LIBOR

  	
   

  	
  o   Prime Rate

  	
   

  	
  o  Treasury Rate

  	
   

  	
  o  Other (see attached)

  

 

B-1

 

If Base Rate is CMT Rate, specify Designated CMT Reuters Page:

 

	
  If
  Base Rate is LIBOR, specify:

  	
   

  	
  LIBOR
  Reuters:

  	
   

  	
  Designated
  LIBOR Page:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest
  Reset Period:

  	
   

  	
  LIBOR
  Currency:

  	
   

  	
  Index
  Maturity:

  

 

Interest Reset Dates:

(Applicable only if other than as described on the reverse hereof)

 

Interest Payment Dates:

 

Interest Accrual:

(Applicable only if other than as described on the reverse hereof)

 

	
  Spread
  Multiplier:

  	
   

  	
  Spread (+/-):

  
	
   

  	
   

  	
   

  
	
  Maximum
  Interest Rate:

  	
   

  	
  Minimum Interest Rate:

  

 

Optional Redemption:

 

Optional Redemption Dates:

 

Redemption Prices:

 

o            The Redemption Price shall
initially be    % of the principal amount
of the Note to be redeemed and shall decline at each anniversary of the initial
Optional Redemption Date by    % of the
principal amount to be redeemed until the Redemption Price is 100% of such
principal amount; provided, however, that if this Note is an
Original Issue Discount Note, the Redemption Price shall be the Amortized Face
Amount of the principal amount to be redeemed.

 

o   Other:

 

	
  Sinking
  Fund:

  	
   

  	
  Amortizing
  Note:

  
	
  Sinking Fund Dates:

  	
   

  	
  Amortization Schedule:

  
	
  Sinking Fund Amounts:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Optional
  Repayment: 

  	
   

  	
  Original
  Issue Discount Note:

  
	
  Optional Repayment Dates:

  	
   

  	
  Total Amount of OID:

  
	
  Optional Repayment Prices:

  	
   

  	
  Yield to Stated Maturity:

  
	
   

  	
   

  	
  Initial Accrual Period OID:

  
	
   

  	
   

  	
   

  
	
  Other
  Provisions:

  	
   

  	
   

  

 

B-2

 

McDONALD’S CORPORATION, a corporation duly
organized and existing under the laws of the State of Delaware, United States
of America (herein called the “Company”, which
term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to [Cede &
Co.] [name of registered holder]

 

or registered assigns, on
the Stated Maturity shown above, the principal sum specified above (or so much
thereof as shall then remain outstanding) in the currency specified above (the “Specified Currency”) and to pay interest on the principal
sum outstanding from time to time in the Specified Currency at the Initial
Interest Rate shown above from and including the Original Issue Date shown
above until but excluding the first Interest Reset Date shown above following
the Original Issue Date and thereafter at the Base Rate shown above, adjusted
by the Spread and/or Spread Multiplier, if any, shown above, determined in
accordance with the provisions on the reverse hereof, until said principal
amount is paid or duly provided for in accordance with the terms hereof.  The interest so payable, and punctually paid
or duly provided for, on each Interest Payment Date as specified on the face
hereof shall, as provided in the Indenture referred to on the reverse hereof,
be paid to the person in whose name this Note is registered at the close of
business on the Regular Record Date for such interest as specified on the face
hereof, which, unless otherwise specified on the face hereof, shall be the date
(whether or not a Business Day), 15 calendar days immediately preceding such
Interest Payment Date.  Notwithstanding
the foregoing, if this Note is issued between a Regular Record Date and the
related Interest Payment Date, the interest so payable for the period from the
Original Issue Date to such Interest Payment Date shall be paid on the next
succeeding Interest Payment Date to the Registered Holder hereof on the related
Regular Record Date.  For purposes of
this Note, “Business Day” means any day, other than
Saturday or Sunday, that is (i) neither a legal holiday nor a day on which
banking institutions are authorized or required by law, regulation or executive
order to close in (a) The City of New York, (b) the City of Chicago,
or (c) if the Specified Currency for this Note is other than U.S. dollars
or Euro, the Principal Financial Center (as defined below) of the country
issuing such currency; (ii) if the Specified Currency for this Note is
Euro, a day on which the TARGET System is operating or in any other place or
any other days as may be specified herein; or (iii) if this Note is a
LIBOR Note, a London Business Day.  “Principal Financial Center” will be the capital city of the
country of the Specified Currency or LIBOR Currency, as the case may be, except
that with respect to Australian dollars, Canadian dollars, U.S. dollars and Swiss
francs, the Principal Financial Center shall be Sydney, Toronto, The City of
New York and Zurich, and (solely in the case of the LIBOR Currency) London,
respectively. “London Business Day” means a day
on which banking institutions are open for business (including dealings in the
LIBOR Currency) in London.

 

The principal hereof and any premium and
interest hereon are payable by the Company in the Specified Currency shown
above.  If the Specified Currency shown
above is other than U.S. dollars, the Company or the Paying Agent will (unless
otherwise specified on the face hereof) arrange to convert all payments in
respect hereof into U.S. dollars in the manner described on the reverse
hereof.  The Holder hereof may, if so
indicated above, elect to receive all payments in respect hereof in the
Specified Currency by delivery of a written notice to the Paying Agent not
later than 15 calendar days prior to the applicable payment date.  Such election will remain in effect until
revoked by written notice to the Paying Agent received not later than 15
calendar days prior to the applicable payment date.  If the Company determines that the Specified
Currency is not available to the Company for making payments in respect hereof
due to the imposition of exchange controls or other circumstances beyond the
Company’s control, then the Holder hereof may not so elect to receive payments
in the Specified Currency, and any such outstanding election shall be
automatically suspended, and payments shall be in U.S. dollars, until the
Company determines that the Specified Currency is again available to the
Company for making such payments.

 

If this Note is a Certificated Note, payments
of interest in U.S. dollars (other than interest payable at Maturity) will be
made by check mailed to the address of the Person entitled thereto as such
address shall appear on the Debt Security Register on the applicable Regular
Record Date, provided that, if the Holder
hereof is the Holder of U.S.$10,000,000 (or the equivalent thereof in a
Specified Currency other than U.S. dollars determined as provided on the
reverse hereof) or more in aggregate principal amount of Notes of like tenor
and term, such U.S. dollar interest payments will be made by wire transfer of
immediately available funds, but only if appropriate wire transfer instructions
have been received in writing by the Paying Agent not less than 15 

 

B-3

 

calendar days prior to the
applicable Interest Payment Date. 
Simultaneously with any election by the Holder hereof to receive
payments in respect hereof in the Specified Currency (if other than U.S.
dollars), such Holder shall provide appropriate wire transfer instructions to
the Paying Agent and all such payments will be made by wire transfer of
immediately available funds to an account maintained by the payee with a bank
located outside the United States. 
Unless otherwise specified on the face hereof, the principal hereof and
any premium and interest hereon payable at Maturity will be paid in immediately
available funds upon surrender of this Note at the Place of Payment.  If this Note is a Global Security, beneficial
owners of interest herein will be paid in accordance with DTC’s and its
participants’ procedures in effect from time to time.

 

Reference is hereby made to the further
provisions of this Note set forth on the reverse hereof, and such further
provisions shall for all purposes have the same effect as if set forth in this
place.

 

THIS NOTE SHALL BE GOVERNED BY,
AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE
OF ILLINOIS.

 

Unless the Certificate of Authentication
hereon has been executed by the Trustee referred to on the reverse hereof (or
by an Authenticating Agent, as provided in the Indenture) by manual signature,
this Note shall not be entitled to any benefit under the Indenture or be valid
or obligatory for any purpose.

 

B-4

 

IN WITNESS WHEREOF, McDonald’s Corporation
has caused this Note to be signed in its corporate name by the Chairman of the
Board, Vice Chairman of the Board, Chief Executive Officer, President, Chief
Financial Officer or Treasurer manually or in facsimile, and a facsimile of its
corporate seal to be imprinted hereon and attested by the manual or facsimile
signature of its Secretary or one of its Assistant Secretaries.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [SEAL]

  	
   

  	
  McDONALD’S
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
							

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Debt
Securities of the series designated herein provided for in the within mentioned
Indenture.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION,

  
	
   

  	
   

  	
  as
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE
  BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

  
	
   

  	
   

  	
  as Authenticating
  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-5

 

MCDONALD’S CORPORATION

MEDIUM-TERM NOTE

(FLOATING RATE)

 

This
Note is one of a single series of duly authorized issue of debentures, notes or
other evidences of indebtedness of the Company (the “Debt
Securities”) of a single series hereinafter specified, all issued or
to be issued in one or more series under a Senior Debt Securities Indenture,
dated as of October 19, 1996 (herein called the “Indenture”),
between the Company and U.S. Bank National Association (formerly, First Union
National Bank), as trustee (the “Trustee”, which
term includes any successor Trustee under the Indenture) to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee and the Holders of the Debt Securities and of the
terms upon which the Debt Securities are, and are to be, authenticated and
delivered.  The Debt Securities may be
issued in one or more series, which different series may be issued in various
currencies, may be issued in various aggregate principal amounts, may mature at
different times, may bear interest (if any) at different rates, may be subject
to different redemption provisions (if any), may be subject to different
sinking, purchase or analogous funds (if any), may be subject to different
covenants and Events of Default and may otherwise vary as in the Indenture provided.  This Debt Security is one of
the series designated on the face hereof, which may be issued without
limitation as to aggregate principal amount.  The U.S. dollar equivalent of the public
offering price or purchase price of Notes denominated in a foreign currency
will be determined by an agent designated by the Company, which initially shall
be The Bank of New York Mellon Trust Company, N.A. (the “Paying Agent”),
on the basis of the noon buying rate in New York City for cable transfers in
foreign currencies as certified for customs purposes by the Federal Reserve
Bank of New York (the “Market Exchange Rate”)
for such currencies on the applicable trade dates.

 

“Maturity”, when used with respect to this Note, means the
date on which the principal of this Note or an installment of principal becomes
due and payable as provided herein or in the Indenture, whether at Stated
Maturity or by declaration of acceleration, call for redemption or otherwise.

 

Unless
otherwise specified on the face hereof in the case of Notes represented by a
Global Security, the authorized denominations of Notes denominated in U.S.
dollars will be U.S.$1,000 and any larger amount that is a multiple of
U.S.$1,000.  The authorized denominations
of Notes denominated in a currency other than U.S. dollars will be as set forth
on the respective faces thereof.

 

Each
Note will be issued initially as either a Book-Entry Note or a Certificated
Note.

 

If
the Specified Currency is other than U.S. dollars, the amount of any U.S.
dollar payment to be made in respect hereof will be determined by the Paying
Agent based on the highest firm bid quotation in The City of New York expressed
in U.S. dollars received by the Paying Agent as of 11:00 A.M., New York
City time, on the second Business Day before the applicable payment date (or,
if no such rate is quoted on such date, the Paying Agent will use the last date
on which such rate was quoted) from three (or, if three are not available, then
two) recognized foreign exchange dealers in The City of New York (which may
include the agents, their affiliates or the Paying Agent) selected by the
Paying Agent and approved by the Company for the purchase by the quoting
dealer, for settlement on such payment date, of the aggregate amount of the
Specified Currency payable on such payment date in respect of all Notes
denominated in such Specified Currency. 
All currency exchange costs will be borne by the Holders of such Notes
by deductions from such U.S. dollar payments. 
If at least two such bid quotations are not available, then such
payments will be made in the Specified Currency, unless the Specified Currency
is unavailable due to the imposition of exchange controls or to other
circumstances beyond the Company’s control, in which case payment will be made
as described in the next paragraph.

 

B-6

 

If
the Specified Currency is other than U.S. dollars and this Note is a Global
Note, the Holder of a beneficial interest in this Global Note may elect to
receive a payment or payments in the Specified Currency by notifying the DTC
participant through which its Notes are held on or prior to the applicable
Record Date of (1) the Holder’s election to receive all or a portion of
the payment in the Specified Currency, and (2) wire transfer instructions
to an account located outside of the United States.  DTC must be notified of an election and wire
transfer instructions (1) on or prior to the third New York Business Day
(as defined below) after the Record Date for any payment of interest, and (2) on
or prior to the tenth New York Business Day after the Record Date for any
payment of principal.  DTC will notify
the Paying Agent of an election and wire transfer instructions (1) on or
prior to 5:00 P.M. New York City time on the fifth New York Business Day
after the Record Date for any payment of interest, and (2) on or prior to
5:00 P.M. New York City time on the twelfth New York Business Day after
the Record Date for any payment of principal. 
If complete instructions are forwarded to DTC through DTC participants
and by DTC to the Paying Agent on or prior to such dates, such Holder will
receive payment in the Specified Currency outside of DTC; otherwise, only U.S.
dollar payments will be made by the Paying Agent to DTC.

 

The
term “New York Business Day” means any day
other than a Saturday or Sunday or a day on which banking institutions in the
City of New York are authorized or required by law or executive order to close.

 

Except
as set forth below, if any payment in respect hereof is required to be made in
a Specified Currency other than U.S. dollars and such currency is unavailable
to the Company due to the imposition of exchange controls or other
circumstances beyond the Company’s control or is no longer used by the
government of the country issuing such currency (unless otherwise replaced by
the Euro) or for the settlement of transactions by public institutions of or
within the international banking community, then such payment shall be made in
U.S. dollars until such currency is again available to the Company or so
used.  The amount so payable in such
foreign currency shall be converted into U.S. dollars on the basis of the most
recently available Market Exchange Rate for such currency or as otherwise
indicated on the face hereof.  Any
payment made under such circumstances in U.S. dollars will not constitute an
Event of Default under the Indenture.

 

If the principal of and any interest and
premium, if any, on the Notes is payable in any Specified Currency other than
U.S. dollars and (i) the country of which such Specified Currency has been
a currency of legal tender for the payment of public and private debts (the “Currency Country”) becomes a Participating Member State (as
defined below), then the Company may, solely at its option and without the
consent of the Holders of such Notes or the need to amend the Indenture, on any
Interest Payment Date after the date on which such country has become a
Participating Member State has occurred, (such Interest Payment Date, a “Redenomination Date”), redenominate all of those Notes into
Euro upon the giving of not less than 30 days’ notice thereof in accordance
with the terms of such Notes, which notice shall set forth the manner in which
such redenomination shall be effected. 
If the Company elects to redenominate a tranche of Notes, the election
to redenominate will have effect as follows:

 

1.               each denomination will be
deemed to be denominated in such amount of Euro as is equivalent to its
denomination or the amount of interest in the Specified Currency at the Fixed
Conversion Rate (as defined below) adopted by the Council of the European Union
for the Specified Currency, rounded down to the nearest Euro 0.01;

 

2.               after the Redenomination
Date, all payments in respect of those Notes, other than payments of interest
in respect of periods commencing before the Redenomination Date, will be made
solely in Euro as though references in those Notes to the Specified Currency
were to Euro.  Payments will be made in
Euro by credit or transfer to a Euro account (or any other account to which
Euro 

 

B-7

 

may be credited or transferred) specified by the payee, or at the
option of the payee, by a Euro cheque;

 

3.               if those Notes bear interest
at a floating rate, the pricing supplement will specify any relevant changes to
the provisions relating to interest; and

 

4.               such other changes shall be
made to the terms of those Notes as we may decide, after consultation with the
Trustee, and as may be specified in the notice, to conform them to conventions
then applicable to debt securities denominated in Euro or to enable those Notes
to be consolidated with other notes, whether or not originally denominated in
the Specified Currency or Euro.  Any such
other changes will not take effect until after they have been notified to the
Holders.

 

The definitions of Business Day and Market
Day that shall apply to the Notes for payments on or in respect thereof
following any redenomination thereof and for all other purposes under the Notes
and under the Indenture shall be (A) business day and market day
definitions for fixed or floating rate (as applicable) Euro-denominated debt
obligations issued in the Euromarkets and held in international clearing
systems which are consistent with existing or anticipated market practices as
determined by the Company or (B) if no such Business Day and Market Day
definitions are so determined, the definitions of Business Day and Market Day
which applied to such Notes before redenomination or (C) if the Company
would be unable to make payments on the Notes on the date that payment is
expressed to be due if (B) above were to apply, such other business day
and market day definitions as are determined by the Company.

 

“EMU” means
Economic and Monetary Union as contemplated by the Treaty of Rome;

 

“Euro” means the
single or unified currency to be introduced in the Participating Member States,
whether known as the Euro or otherwise;

 

“Fixed Conversion Rate”
with respect to any Specified Currency means the irrevocably fixed conversion
rate between the Euro and such Specified Currency adopted by the Council of the
European Union according to Article 109 1(4) first sentence of
the Treaty of Rome;

 

“Maastricht Treaty”
means the treaty on European Union which was signed in Maastricht on February 1,
1992 and came into force on November 1, 1993;

 

“Participating Member State”
means a member state of the European Union that adopts the Euro in accordance
with the Treaty of Rome; and

 

“Treaty of Rome”
means the Treaty of Rome of March 25, 1957, as amended by various
agreements, including the Treaty on European Union (1993), the Treaty of
Amsterdam (1999), the Treaty of Nice (2003) and as further amended, from time
to time.

 

The Company may, with the consent of the
Trustee, and without the need to obtain the consent of the Holders of any Note,
make any changes or additions to the terms of the Notes of a series which
correct any manifest error or any ambiguity or correct or supplement any
defective provisions described herein, and which changes or additions the
Company and the Trustee believe are not materially prejudicial to the interests
of the Holders of the Notes of such series. 
Any such change or addition shall be binding on the Company, the Holders
of the Notes of such series, the Trustee, the Paying Agents and any other agent
of the Company.  Any such change or
addition shall be considered to be made by operation of the terms of the
relevant Notes.  The Company shall
promptly give notice of any such change or addition.

 

B-8

 

Except as provided in the Note or in the
Pricing Supplement with respect to the redenomination of the Notes into Euro,
the occurrence or non-occurrence of an EMU Event (as defined below) or the
entry into force of any law, regulation, directive or order requiring
redenomination to be undertaken on terms different than those described herein,
will not have the effect of altering any term of, or discharging or excusing
performance under, the Indenture or Notes, nor give the Company, the Trustee or
the Holder of such Notes, the right unilaterally to alter or terminate the
Indenture or Notes or give rise to any Event of Default or otherwise be the
basis for any acceleration, early redemption, rescission, notice, repudiation,
adjustment or renegotiation of the terms of the Indenture or Notes.  The occurrence or non-occurrence of an EMU
Event will be considered to occur automatically pursuant to the terms of the
Notes.  For purposes hereof, “EMU Event” means any event associated with EMU in the
European Union, including, without limitation, each (and any combination) of (i) the
fixing of exchange rates between the currency of a Participating Member State
and the Euro or between the currencies of Participating Members States; (ii) the
introduction of the Euro as lawful currency in a Participating Member State; (iii) the
withdrawal from legal tender of any currency that, before the introduction of
the Euro, was lawful currency in any of the Participating Member States; or (iv) the
disappearance or replacement of a relevant rate option or other price source
for the national currency of any participating Member State, or the failure of
the agreed price or rate sponsor (or a successor sponsor) or screen provider to
publish or display the required information.

 

If
so specified on the face hereof, the Company may, at its option, redeem this
Note in whole, or from time to time in part in accordance with the procedures
set forth in the Indenture, on the date or dates designated as the Optional
Redemption Date(s) on the face hereof, at the Redemption Price(s) specified
on the face hereof declining from a specified premium, if any, to par, together
with accrued interest to the Optional Redemption Date.  The Company may exercise such option by
causing the Trustee or the Paying Agent to mail a notice of such redemption at
least 30 but not more than 60 days prior to the applicable Optional Redemption
Date.  In the event of redemption of this
Note in part only, a new Note or Notes for the unredeemed portion hereof shall
be issued in the name of the Holder hereof upon the cancellation hereof.

 

If
so specified on the face hereof, this Note will be repayable prior to its
Stated Maturity at the option of the Holder on the Optional Repayment Date(s) shown
on the face hereof at the Optional Repayment Price(s) shown on the face
hereof, together with accrued interest to the date of repayment.  In order for this Note to be repaid, the
Paying Agent must receive at least 30 but not more than 45 days prior to an
Optional Repayment Date (i) this Note with the form below entitled “Option
to Elect Repayment” duly completed; or (ii) a facsimile transmission or
letter from a member of a national securities exchange or the National
Association of Securities Dealers, Inc. or a commercial bank or trust
company in the United States of America setting forth the name of the Holder of
this Note, the principal amount of the Note to be repaid, the certificate
number or a description of the tenor and terms of this Note, a statement that
the option to elect repayment is being exercised thereby and a guarantee that
this Note with the form below entitled “Option to Elect Repayment” duly
completed will be received by the Paying Agent not later than five Business
Days after the date of such facsimile transmission or letter.  If the procedure described in clause (ii) of
the preceding sentence is followed, this Note with the form duly completed must
be received by the Paying Agent by such fifth Business Day.  Any tender of this Note for repayment shall
be irrevocable.  The repayment option may
be exercised by the Holder of this Note for less than the entire principal
amount of the Note, provided that
the principal amount of this Note remaining outstanding after repayment is an
authorized denomination.  Upon such
partial repayment, this Note shall be canceled and a new Note or Notes for the
remaining principal amount hereof shall be issued in the name of the Holder of
this Note.

 

B-9

 

Unless
otherwise specified on the face hereof, this Note will not be subject to any
sinking fund.  Any such sinking fund
shall be administered in accordance with the terms specified on the face hereof
and otherwise as set forth in the Indenture.

 

Notwithstanding
anything herein to the contrary, if this Note is an Original Issue Discount
Note, the amount payable in the event of redemption or repayment prior to the
Stated Maturity hereof, in lieu of the principal amount due at the Stated
Maturity hereof, shall be the Amortized Face Amount of this Note as of the
Optional Redemption Date or the Optional Repayment Date, as the case may
be.  The “Amortized
Face Amount” of this Note shall be the amount equal to (a) the
Issue Price (as set forth on the face hereof) plus (b) that portion of the
difference between the Issue Price and the principal amount hereof that has
accrued at the Yield to Stated Maturity (as set forth on the face hereof)
(computed in accordance with generally accepted United States bond yield computation
principles) at the date as of which the Amortized Face Amount is calculated,
but in no event shall the Amortized Face Amount of this Note, if it is an
Original Issue Discount Note, exceed its principal amount.

 

This
Note will bear interest from its Original Issue Date to the first Interest
Reset Date (as defined below) at the Initial Interest Rate set forth on the
face hereof.  Thereafter, the interest
rate hereon for each Interest Reset Period (as defined below) will be
determined by reference to the Base Rate or Rates specified on the face hereof,
plus or minus the Spread, if any, and/or multiplied by the Spread Multiplier,
if any, specified on the face hereof. 
The Base Rates that may be specified on the face hereof are the CD Rate,
the CMT Rate, the Commercial Paper Rate, the Federal Funds Rate, LIBOR, the
Treasury Rate, the Prime Rate or any other Base Rate or formula specified on
the face hereof. “H.15(519)” means the publication
entitled “Statistical Release H.15(519), Selected Interest Rates” or any
successor publication, published by the Board of Governors of the Federal
Reserve System.  “H.15 Daily
Update” means the daily update of H.15(519), available through the
Web site of the Board of Governors of the Federal Reserve System at http://www.federalreserve.gov/release/h15/update,
or any successor site or publication.

 

As
specified on the face hereof, this Note may also have either or both of the
following (in each case expressed as a rate per annum on a simple interest
basis):  (i) a maximum limitation,
or ceiling, on the rate at which interest may accrue during any interest period
(“Maximum Interest Rate”) and (ii) a
minimum limitation, or floor, on the rate at which interest may accrue during
any interest period (“Minimum Interest Rate”).  In addition to any Maximum Interest Rate that
may be specified on the face hereof, the interest rate will in no event be
higher than the maximum rate permitted by applicable law, as the same may be
modified by United States law of general application.

 

The
interest rate hereon will be reset daily, weekly, monthly, quarterly,
semiannually or annually (such period being the “Interest
Reset Period” specified on the face hereof, and the first day of
each Interest Reset Period being an “Interest Reset Date”).  Unless otherwise specified on the face
hereof, the Interest Reset Dates will be, if this Note resets daily, each
Business Day; if this Note (unless this Note is a Treasury Rate Note) resets
weekly, Wednesday of each week; if this Note is a Treasury Rate Note that
resets weekly, Tuesday of each week (except as provided below under “Determination of Treasury Rate”); if this Note resets
monthly, the third Wednesday of each month; if this Note resets quarterly, the
third Wednesday of March, June, September and December of each year;
if this Note resets semiannually, the third Wednesday of each of the two months
of each year specified on the face hereof; and if this Note resets annually,
the third Wednesday of one month of each year specified on the face hereof.  If an Interest Reset Date would otherwise be
a day that is not a Business Day, such Interest Reset Date shall be postponed
to the next succeeding Business Day, except that, if the Base Rate specified on
the face hereof is LIBOR and such Business Day is in the next succeeding
calendar month, such Interest Reset Date shall be the immediately preceding
Business Day.

 

B-10

 

Unless
otherwise specified on the face hereof, the interest payable hereon on each
Interest Payment Date shall be the accrued interest from and including the
Original Issue Date or the last date to which interest has been paid or duly
provided for, as the case may be, to but excluding such Interest Payment Date
or Maturity, as the case may be.  Unless
otherwise specified on the face hereof, accrued interest shall be calculated by
multiplying the principal amount hereof by an accrued interest factor.  Such accrued interest factor will be computed
by adding the interest factors calculated for each day in the period for which
accrued interest is being calculated. 
Unless otherwise specified on the face hereof, the interest factor
(expressed as a decimal calculated to seven decimal places without rounding)
for each such day shall be computed by dividing the interest rate in effect on
such day by 360 if the Base Rate specified on the face hereof is the CD Rate,
the Commercial Paper Rate, the Federal Funds Rate, LIBOR or the Prime Rate, or
by the actual number of days in the year, if the Base Rate specified on the
face hereof is the Treasury Rate or the CMT Rate.  For purposes of making the foregoing
calculation, the interest rate in effect on any Interest Reset Date will be the
applicable rate as reset on such date. 
Unless otherwise specified on the face hereof, all percentages resulting
from any calculation of the rate of interest hereof will be rounded, if
necessary, to the nearest 1/100,000 of 1% (.0000001), with five millionths of a
percentage point (.00000005) rounded upward, and all currency amounts used in
or resulting from such calculation will be rounded to the nearest one-hundredth
of a unit (with .005 of a unit being rounded upward).

 

Unless
otherwise specified on the face hereof and except as provided below, interest
will be payable, if this Note resets daily, weekly or monthly, on the third
Wednesday of each month or on the third Wednesday of March, June, September and
December of each year, as specified on the face hereof; if this Note
resets quarterly, on the third Wednesday of March, June, September and December of
each year; if this Note resets semiannually, on the third Wednesday of each of
the two months of each year specified on the face hereof; and if this Note
resets annually, on the third Wednesday of one month of each year specified on
the face hereof (each such day being an “Interest Payment Date”)
and, in each case, at Maturity.  If an
Interest Payment Date (other than at Maturity) would otherwise fall on a day
that is not a Business Day, such Interest Payment Date shall be postponed to
the next succeeding Business Day, except that, if the Base Rate specified on
the face hereof is LIBOR and such Business Day would fall in the next
succeeding calendar month, such Interest Payment Date shall be the immediately
preceding Business Day.

 

If
the Maturity of this Note falls on a day that is not a Business Day, the
required payment of principal, premium (if any) and/or interest will be made on
the next succeeding Business Day as if made on the date such payment was due,
and no interest shall accrue on such payment for the period from and after
Maturity to the date of such payment on the next succeeding Business Day.

 

The
Company has appointed and entered into an agreement with an agent (a “Calculation Agent”) to calculate the interest rates on
Floating Rate Notes.  Unless otherwise
specified on the face hereof, The Bank of New York Mellon Trust Company, N.A.
shall be the Calculation Agent.  At the
request of the Holder hereof, the Calculation Agent will provide to such Holder
the interest rate then in effect, and, if determined and different, the
interest rate that will become effective on the next Interest Reset Date.  All determinations of interest rates by the
Calculation Agent shall, in the absence of manifest error, be conclusive for
all purposes and binding on the Holder hereof.

 

Subject
to applicable provisions of law and except as specified herein, on each
Interest Reset Date the rate of interest shall be the rate determined in
accordance with the provisions of the applicable heading below.

 

B-11

 

Determination
of CD Rate

 

If
the Base Rate specified on the face hereof is the CD Rate, this Note will bear
interest for each Interest Reset Period at the interest rate calculated with
reference to the CD Rate and any Spread and/or Spread Multiplier, if any,
specified on the face hereof.  The “CD Rate” for each Interest Reset Period shall be:

 

(1) the rate as of the second Business
Day prior to the Interest Reset Date for such Interest Reset Period (a “CD Rate Determination Date”) for negotiable U.S. dollar
certificates of deposit having the Index Maturity specified on the face hereof,
as published in H.15(519) under the caption ‘‘CDs (secondary market)’’;

 

(2) if the rate referred to in clause (1) is
not so published by 3:00 P.M., New York City time, on the Calculation Date
(as defined below) pertaining to such CD Rate Determination Date, then the “CD
Rate” for such Interest Reset Period will be the rate on such CD Rate
Determination Date for negotiable U.S. dollar certificates of deposit of the
particular Index Maturity as published in H.15 Daily Update, or other
recognized electronic source used for the purpose of displaying the applicable
rate, under the caption ‘‘CDs (secondary market)’’;

 

(3) if the rate referred to in clause (2) is
not so published by 3:00 P.M., New York City time, on such Calculation
Date, then the “CD Rate” for such Interest Reset Period will be calculated by
the Calculation Agent as the arithmetic mean of the secondary market offered
rates as of 10:00 A.M., New York City time, on such CD Rate Determination
Date, of three leading nonbank dealers in negotiable U.S. dollar certificates of
deposit in The City of New York (which may include the agents or their
affiliates) selected by the Calculation Agent for negotiable U.S. dollar
certificates of deposit of major United States money market banks (in the
market for negotiable U.S. certificates of deposit) with a remaining maturity
closest to the particular Index Maturity in an amount that is representative
for a single transaction in that market at that time; or

 

(4) if the dealers so selected by the
Calculation Agent are not quoting offered rates as mentioned in clause (3), the
CD Rate for such Interest Reset Period will be the CD Rate in effect on such CD
Rate Determination Date, or, if none, the Initial Interest Rate.

 

The
“Calculation Date” pertaining to any CD
Rate Determination Date shall be the earlier of (i) the tenth calendar day
after such CD Rate Determination Date or, if such day is not a Business Day,
the next Business Day or (ii) the Business Day immediately before the
applicable Interest Payment Date or Maturity, as the case may be.

 

Determination of Commercial Paper
Rate

 

If
the Base Rate shown on the face hereof is the Commercial Paper Rate, this Note
will bear interest for each Interest Reset Period at the interest rate
calculated with reference to the Commercial Paper Rate and any Spread and/or
Spread Multiplier, if any, specified on the face hereof.  The “Commercial Paper Rate”
for each Interest Reset Period will be determined by the Calculation Agent as:

 

(1) of the second Business Day prior to
the Interest Reset Date for such Interest Reset Period (a “Commercial
Paper Rate Determination Date”) and shall be the Money Market Yield
(as defined below) on such Commercial Paper Rate Determination Date of the rate
for commercial paper having the Index Maturity specified on the face hereof, as
published in H.15(519) under the caption ‘‘Commercial Paper—Nonfinancial’’;

 

B-12

 

(2) if the rate referred to in clause (1) is
not so published by 3:00 P.M., New York City time, on the Calculation Date
(as defined below), then the “Commercial Paper Rate” for such Interest Reset
Period shall be the Money Market Yield on such Commercial Paper Rate
Determination Date of the rate for commercial paper of the Index Maturity
specified on the face hereof as published in H.15 Daily Update, or such other
recognized electronic source used for the purpose of displaying the applicable
rate, under the caption ‘‘Commercial Paper—Nonfinancial’’;

 

(3) if the rate referred to in clause (2) is
not so published by 3:00 P.M., New York City time, on such Calculation
Date, then the “Commercial Paper Rate” for such Interest Reset Period shall be
the Money Market Yield of the arithmetic mean of the offered rates at
approximately 11:00 A.M., New York City time, on such Commercial Paper
Rate Determination Date of three leading dealers of U.S. dollar commercial
paper in The City of New York (which may include the agents or their
affiliates) selected by the Calculation Agent for commercial paper of the
particular Index Maturity specified on the face hereof placed for industrial
issuers whose bond rating is ‘‘AA’’, or the equivalent, from a nationally
recognized statistical rating organization; or

 

(4) if the dealers so selected by the
Calculation Agent are not quoting offered rates as mentioned in clause (3), the
“Commercial Paper Rate” for such Interest Reset Period will be the Commercial
Paper Rate in effect on such Commercial Paper Rate Determination Date, or, if
none, the Initial Interest Rate.

 

“Money Market Yield” shall be a yield calculated in
accordance with the following formula and expressed as a percentage:

 

	
  Money Market Yield =

  	
  D x 360

  	
  x

  	
  100

  	
   

  	
   

  
	
   

  	
  360 - (D x M)

  	
   

  	
   

  	
   

  	
   

  

 

where
“D” refers to the applicable per annum rate for commercial paper quoted on a
bank discount basis and expressed as a decimal, and “M” refers to the actual
number of days in the period for which accrued interest is being calculated.

 

The
“Calculation Date” pertaining to any
Commercial Paper Rate Determination Date shall be the earlier of (i) the
tenth calendar day after such Commercial Paper Rate Determination Date or, if
such day is not a Business Day, the next Business Day or (ii) the Business
Day immediately before the applicable Interest Payment Date or Maturity, as the
case may be.

 

Determination of Federal Funds
Rate

 

If
the Base Rate specified on the face hereof is the Federal Funds Rate, this Note
will bear interest for each Interest Reset Period at the interest rate
calculated with reference to the Federal Funds Rate and Spread and/or Spread
Multiplier, if any, specified on the face hereof.  The “Federal Funds Rate”
for each Interest Reset Period shall be:

 

(1) the effective rate on the second
Business Day prior to the Interest Reset Date for such Interest Reset Period (a
“Federal Funds Rate Determination Date”)
for U.S. dollar federal funds as published in H.15(519) under the caption ‘‘Federal
Funds (Effective)’’ and displayed on Reuters 3000 Xtra Service (“Reuters”) (or
any successor service) on page FEDFUNDS1 (or any other page as may
replace the specified page on that service) (‘‘Reuters Page FEDFUNDS1’’);

 

(2) if the rate referred to in clause (1) does
not so appear on Reuters Page FEDFUNDS1 or is not so published by 3:00 P.M.,
New York City time, on the Calculation Date (as defined 

 

B-13

 

below) pertaining to such
Federal Funds Rate Determination Date, the “Federal Funds Rate” for such
Interest Reset Period shall be the rate on such Federal Funds Rate
Determination Date for U.S. dollar federal funds as published in H.15 Daily
Update, or such other recognized electronic source used for the purpose of
displaying the applicable rate, under the caption ‘‘Federal Funds (Effective)’’;

 

(3) if the rate referred to in clause (2) is
not so published by 3:00 P.M., New York City time, on such Calculation
Date, then the “Federal Funds Rate” for such Interest Reset Period shall be the
arithmetic mean of the rates for the last transaction in overnight U.S. dollar
federal funds arranged by each of three leading brokers of U.S. dollar federal
funds transactions in The City of New York (which may include the agents or
their affiliates) selected by the Calculation Agent prior to 9:00 A.M.,
New York City time, on such Federal Funds Rate Determination Date; or

 

(4) if fewer than three brokers so
selected by the Calculation Agent are not quoting as mentioned in clause (3),
the “Federal Funds Rate” for such Interest Reset Period will be the Federal
Funds Rate in effect on such Federal Funds Rate Determination Date, or, if none,
the Initial Interest Rate.

 

The
“Calculation Date” pertaining to any Federal Funds Rate Determination Date
shall be the earlier of (i) the tenth calendar day after such Federal
Funds Rate Determination Date or, if such day is not a Business Day, the next
Business Day or (ii) the Business Day immediately before the applicable
Interest Payment Date or Maturity, as the case may be.

 

Determination of LIBOR

 

If
the Base Rate specified on the face hereof is LIBOR, this Note will bear
interest for each Interest Reset Period at the interest rate calculated with
reference to LIBOR and the Spread and/or Spread Multiplier, if any, specified
on the face hereof.  If LIBOR is indexed
to the offered rates for deposits in a currency other than U.S. dollars, the
method for determining such rate will be specified on the face hereof.  If LIBOR is indexed to the offered rate for
U.S. dollar deposits, “LIBOR” for each
Interest Reset Period shall be determined by the Calculation Agent as follows:

 

(1) on the second London Business Day
prior to the Interest Reset Date for such Interest Reset Period (a “LIBOR Determination Date”), if ‘‘LIBOR Reuters’’ is
specified on the face hereof, the arithmetic mean of the offered rates (unless
the specified Designated LIBOR Page by its terms provides only for a
single rate, in which case such single rate shall be used), calculated by the
Calculation Agent, for deposits in the LIBOR Currency having the Index Maturity
designated on the face hereof, commencing on the related Interest Reset Date,
that appear on the Designated LIBOR Page specified on the face hereof as
of 11:00 A.M., London time, on such LIBOR Determination Date, if at least
two such offered rates appear (unless, as aforesaid, only a single rate is
required) on such Designated LIBOR Page;

 

(2) if fewer than two offered rates
appear (or no rate appears and the Designated LIBOR Page by its terms
provides only for a single rate) on such LIBOR Determination Date as specified
in clause (1), with respect to this LIBOR Note and an Interest Reset Period to
which this clause (2) applies, the Calculation Agent will request the
principal London offices of each of four major reference banks in the London
interbank market (which may include the agents or their affiliates), as
selected by the Calculation Agent, to provide the Calculation Agent with its
offered quotation for deposits in the LIBOR Currency for the period of the
Index Maturity designated on the face hereof, commencing on the second London
Business Day immediately following such LIBOR Determination Date, to prime
banks in the London interbank market at approximately

 

B-14

 

11:00 A.M., London
time, on such LIBOR Determination Date and in a principal amount that is
representative for a single transaction in such LIBOR Currency in such market
at such time.  If at least two such
quotations are provided, LIBOR determined on such LIBOR Determination Date will
be calculated by the Calculation Agent as the arithmetic mean of such
quotations;

 

(3) if fewer than two quotations
referred to in clause (2) are provided, LIBOR determined on such LIBOR
Determination Date will be calculated by the Calculation Agent as the
arithmetic mean of the rates quoted at approximately 11:00 A.M. in the
applicable Principal Financial Center, on such LIBOR Determination Date by
three major banks (which may include the agents or their affiliates) in that
Principal Financial Center selected by the Calculation Agent for loans in the
LIBOR Currency to leading European banks, having the Index Maturity designated
on the face hereof and in a principal amount that is representative for a
single transaction in such LIBOR Currency in such market at such time; or

 

(4) if the banks so selected by the
Calculation Agent are not quoting as mentioned in clause (3), LIBOR determined
as of such LIBOR Determination Date will be LIBOR in effect on such LIBOR
Determination Date.

 

“Calculation Date” pertaining to LIBOR shall be the LIBOR
Determination Date.

 

“Designated LIBOR Page” means, if “LIBOR Reuters” is
specified on the face hereof, the display on Reuters, or any successor service,
on page LIBOR01, or any other page as may replace that page on
that service, for the purpose of displaying the London interbank rates of major
banks for the applicable LIBOR Currency.

 

“LIBOR Currency” means the currency specified on the face
hereof as the currency for which LIBOR shall be calculated.  If no such currency is specified on the face
hereof, the LIBOR Currency shall be U.S. dollars.

 

“Principal Financial Center” will be the capital city of the
country of the Specified Currency or LIBOR Currency, except that with respect
to Australian dollars, Canadian dollars, U.S. dollars, Swiss francs and Euro,
the Principal Financial Center shall be Sydney, Toronto, The City of New York,
Zurich and (solely in the case of the LIBOR Currency) London, respectively.

 

Determination
of Treasury Rate

 

If
the Base Rate specified on the face hereof is the Treasury Rate, this Note will
bear interest for each Interest Reset Period at the interest rate calculated
with reference to the Treasury Rate and the Spread and/or Spread Multiplier, if
any, specified on the face hereof.  The “Treasury Rate” for each Interest Reset Period will be:

 

(1) the rate from the auction (“Auction”)
held on the Treasury Rate Determination Date (defined below) for such Interest
Reset Period of direct obligations of the United States (‘‘Treasury
Bills’’) having the Index Maturity specified on the face hereof,
under the caption ‘‘INVESTMENT RATE’’ on the display on Reuters (or any
successor service) on page USAUCTION10 (or any other page as may
replace that page on that service) (‘‘Reuters Page USAUCTION10’’)
or page USAUCTION11 (or any other page as may replace that page on
that service) (‘‘Reuters Page USAUCTION11’’);

 

(2) if the rate referred to in clause (1) is
not so published by 3:00 P.M., New York City time, on the related
Calculation Date (as defined below) pertaining to such Treasury Rate 

 

B-15

 

Determination Date, the Bond
Equivalent Yield of the rate for the applicable Treasury Bills as published in
H.15 Daily Update, or another recognized electronic source used for the purpose
of displaying the applicable rate, under the caption ‘‘U.S. Government Securities/Treasury
Bills/Auction High’’;

 

(3) if the rate referred to in clause (2) is
not so published by 3:00 P.M., New York City time, on the Calculation
Date, the Bond Equivalent Yield of the auction rate of the applicable Treasury
Bills as announced by the U.S. Department of the Treasury;

 

(4) if the rate referred to in clause (3) is
not so announced by the U.S. Department of the Treasury, or if the Auction is
not held, the Bond Equivalent Yield of the rate on the Treasury Rate
Determination Date of the applicable Treasury Bills as published in H.15(519)
under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”;

 

(5) if the rate referred to in clause (4) is
not so published by 3:00 P.M., New York City time, on the related
Calculation Date, the rate on the Treasury Rate Determination Date of the
applicable Treasury Bills as published in H.15 Daily Update, or another
recognized electronic source used for the purpose of displaying the applicable
rate, under the caption ‘‘U.S. Government Securities/Treasury Bills/Secondary
Market’’;

 

(6) if the rate referred to in clause (5) is
not so published by 3:00 P.M., New York City time, on the related
Calculation Date, the rate on the Treasury Rate Determination Date calculated
by the Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of
the secondary market bid rates, as of approximately 3:30 P.M., New York
City time, on the Treasury Rate Determination Date, of three leading primary
U.S. government securities dealers (which may include the agents or their
affiliates) selected by the Calculation Agent, for the issue of Treasury Bills
with a remaining maturity closest to the Index Maturity specified on the face
hereof; or

 

(7) if the dealers so selected by the
Calculation Agent are not quoting as mentioned in clause (6), the Treasury Rate
in effect on such Treasury Rate Determination Date, or, if none, the Initial
Interest Rate.

 

The
“Treasury Rate Determination Date” for
each Interest Reset Period will be the day of the week in which the Interest
Reset Date for such Interest Reset Period falls on which Treasury Bills would
normally be auctioned.  Treasury Bills
are normally sold at auction on Monday of each week, unless that day is a legal
holiday, in which case the auction is normally held on the following Tuesday,
except that such auction may be held on the preceding Friday.  If, as the result of a legal holiday, an
auction is so held on the preceding Friday, such Friday will be the Treasury
Rate Determination Date pertaining to the Interest Reset Period commencing in
the next succeeding week.  If an auction
date shall fall on any day that would otherwise be an Interest Reset Date for a
Note whose Base Rate is the Treasury Rate, then such Interest Reset Date shall
instead be the Business Day immediately following such auction date.

 

The
“Calculation Date” pertaining to any
Treasury Rate Determination Date shall be the earlier of (i) the tenth
calendar day after such Treasury Rate Determination Date, or if such day is not
a Business Day, the next Business Day or (ii) the Business Day immediately
before the applicable Interest Payment Date or Maturity, as the case may be.

 

The
‘‘Bond Equivalent Yield’’ means a yield
(expressed as a percentage) calculated in accordance with the following
formula:

 

B-16

 

	
  Bond Equivalent Yield =

  	
  D
  × N

  	
  x

  	
  100

  	
   

  	
   

  
	
   

  	
  360-(D
  × M)

  	
   

  	
   

  	
   

  	
   

  

 

where ‘‘D’’ refers to the applicable annual rate for
Treasury Bills quoted on a bank discount basis and expressed as a decimal, ‘‘N’’
refers to 365 or 366, as the case may be, and ‘‘M’’ refers to the actual number
of days in the applicable Interest Reset Period.

 

Determination of Prime Rate

 

If
the Base Rate specified on the face hereof is the Prime Rate, this Note will
bear interest for each Interest Reset Period at the interest rate calculated
with reference to the Prime Rate and the Spread and/or Spread Multiplier, if
any, specified on the face hereof.  The “Prime Rate” for each Interest Reset Period will be
determined by the Calculation Agent as:

 

(1) of the second Business Day prior to
the Interest Reset Date for such Interest Reset Period (a “Prime Rate
Determination Date”) and shall be the rate published in H.15(519)
under the caption ‘‘Bank Prime Loan’’;

 

(2) if the rate referred to in clause (1) is
not so published by 3:00 P.M., New York City time, on the Calculation Date
(as defined below), then the “Prime Rate” for such Interest Reset Period on
such Prime Rate Determination Date shall be as published in H.15 Daily Update,
or such other recognized electronic source used for the purpose of displaying
the applicable rate, under the caption ‘‘Bank Prime Loan’’;

 

(3) if the rate referred to in clause (2) is
not so published by 3:00 P.M., New York City time, on the Calculation
Date, then the “Prime Rate” for such Interest Reset Period on such Prime Rate
Determination Date calculated by the Calculation Agent shall be the arithmetic
mean of the rates of interest publicly announced by each bank that appears on
the Reuters Screen US PRIME 1 Page (as defined below) as such bank’s prime
rate or base lending rate as of 11:00 A.M., New York City time, on such
Prime Rate Determination Date;

 

(4) if fewer than four rates referred to
in clause (3) are so published by 3:00 P.M., New York City time, on
the related Calculation Date, the “Prime Rate” will be the rate calculated by
the Calculation Agent on the Prime Rate Determination Date as the arithmetic
mean of the prime rates or base lending rates quoted on the basis of the actual
number of days in the year divided by a 360-day year as of the close of
business on such Prime Rate Determination Date by three major banks (which may
include the agents or their affiliates) in The City of New York selected by the
Calculation Agent; or

 

(5) if the banks so selected by the
Calculation Agent are not quoting as mentioned in clause (4), the Prime Rate of
such Interest Reset Period will be the Prime Rate in effect on such Prime Rate
Determination Date, or, if none, the Initial Interest Rate.

 

“Reuters Screen US PRIME 1
Page” means the display on Reuters (or any successor service) on the
“US PRIME 1” page (or any other page as may replace that page on
that service) for the purpose of displaying prime rates or base lending rates
of major U.S. banks.

 

The
“Calculation Date” pertaining to a Prime
Rate Determination Date shall be the earlier of (i) the tenth calendar day
after such Prime Rate Determination Date or, if such day is not a Business Day,
the next Business Day or (ii) the Business Day immediately before the applicable
Interest Payment Date or Maturity, as the case may be.

 

B-17

 

Determination of CMT Rate

 

If
the Base Rate specified on the face hereof is the CMT Rate, this Note will bear
interest for each Interest Reset Period at the interest rate calculated with
reference to the CMT Rate and the Spread and/or Spread Multiplier, if any,
specified on the face hereof.

 

Unless
otherwise specified on the face hereof, the “CMT Rate”
for each Interest Reset Period will be determined by the Calculation Agent and
shall be the rate:

 

(1) if CMT Reuters Page (as defined
below) is FRBCMT, as of the second Business Day prior to the Interest Reset
Date for such Interest Reset Period (a “CMT Determination Date”)
is specified on the face hereof:

 

(a) the percentage equal to the yield
for United States Treasury securities at ‘‘constant maturity’’ having the Index
Maturity specified on the face hereof as published in H.15(519) under the
caption ‘‘Treasury Constant Maturities’’, as the yield is displayed on Reuters
(or any successor service) on page FRBCMT (or any other page as may
replace the specified page on that service) (‘‘Reuters Page FRBCMT’’),
for such CMT Determination Date;

 

(b) if the rate referred to in clause (a) does
not so appear on Reuters Page FRBCMT, the percentage equal to the yield
for United States Treasury securities at ‘‘constant maturity’’ having the
particular Index Maturity and for such CMT Determination Date as published in
H.15(519) under the caption ‘‘Treasury Constant Maturities’’;

 

(c) if the rate referred to in clause (b) does
not so appear in H.15(519), the rate on such CMT Determination Date for the
period of the particular Index Maturity as may then be published by either the
Federal Reserve System Board of Governors or the United States Department of
the Treasury that the Calculation Agent determines to be comparable to the rate
which would otherwise have been published in H.15(519);

 

(d) if the rate referred to in clause (c) is
not so published, the rate on such CMT Determination Date calculated by the
Calculation Agent as a yield to maturity based on the arithmetic mean of the
secondary market bid prices at approximately 3:30 P.M., New York City
time, on the Calculation Date relating to such CMT Determination Date of three
leading primary U.S. government securities dealers in The City of New York
(which may include the agents or their affiliates) (each, a ‘‘Reference Dealer’’), selected by the Calculation Agent from
five Reference Dealers selected by the Calculation Agent and eliminating the
highest quotation, or, in the event of equality, one of the highest, and the
lowest quotation or, in the event of equality, one of the lowest, for U.S.
Treasury securities with an original maturity equal to the particular Index
Maturity, a remaining term to maturity no more than one year shorter than that
Index Maturity and in a principal amount that is representative for a single
transaction in the securities in that market at that time;

 

(e) if fewer than five but more than two
of the prices referred to in clause (d) are provided as requested, the
rate on such CMT Determination Date calculated by the Calculation Agent based
on the arithmetic mean of the bid prices obtained and neither the highest nor
the lowest of the quotations shall be eliminated;

 

B-18

 

(f) if fewer than three prices referred
to in clause (d) are provided as requested, the rate on such CMT
Determination Date calculated by the Calculation Agent as a yield to maturity
based on the arithmetic mean of the secondary market bid prices as of
approximately 3:30 P.M., New York City time, on that Interest
Determination Date of three Reference Dealers selected by the Calculation Agent
from five Reference Dealers selected by the Calculation Agent and eliminating
the highest quotation or, in the event of equality, one of the highest and the
lowest quotation or, in the event of equality, one of the lowest, for U.S.
Treasury securities with an original maturity greater than the particular Index
Maturity, a remaining term to maturity closest to that Index Maturity and in a
principal amount that is representative for a single transaction in the
securities in that market at that time;

 

(g) if fewer than five but more than two
prices referred to in clause (f) are provided as requested, the rate on
such CMT Determination Date calculated by the Calculation Agent based on the
arithmetic mean of the bid prices obtained and neither the highest nor the
lowest of the quotations will be eliminated; or

 

(h) if fewer than three prices referred
to in clause (f) are provided as requested, the “CMT Rate” will be the CMT
Rate in effect on such CMT Determination Date, or, if none, the Initial
Interest Rate.

 

(2) if CMT Reuters Page is FEDCMT:

 

(a) the percentage equal to the one-week
or one-month, as specified on the face hereof, average yield for U.S. Treasury
securities at ‘‘constant maturity’’ having the Index Maturity specified on the
face hereof as published in H.15(519) opposite the caption ‘‘Treasury Constant
Maturities’’, as the yield is displayed on Reuters (or any successor service)
on page FEDCMT (or any other page as may replace the specified page on
that service) (‘‘Reuters Page FEDCMT’’), for
the week or month, as applicable, ended immediately preceding the week or
month, as applicable, in which the CMT Determination Date falls;

 

(b) if the rate referred to in clause (a) does
not so appear on Reuters Page FEDCMT by 3:00 P.M., New York City
time, on the related Calculation Date, the percentage equal to the one-week or
one-month, as specified herein, average yield for U.S. Treasury securities at ‘‘constant
maturity’’ having the particular Index Maturity and for the week or month, as
applicable, preceding the CMT Determination Date as published in H.15(519)
opposite the caption ‘‘Treasury Constant Maturities’’;

 

(c) if the rate referred to in clause (b) does
not so appear in H.15(519) by 3:00 P.M., New York City time, on the
related Calculation Date, the one-week or one-month, as specified herein,
average yield for U.S. Treasury securities at ‘‘constant maturity’’ having the
particular Index Maturity as otherwise announced by the Federal Reserve Bank of
New York for the week or month, as applicable, ended immediately preceding the
week or month, as applicable, in which such CMT Determination Date falls;

 

(d) if the rate referred to in clause (c) is
not so published by 3:00 P.M., New York City time, on the related
Calculation Date, the rate on such CMT Determination Date calculated by the
Calculation Agent as a yield to maturity based on the arithmetic mean of the
secondary market bid prices at approximately 3:30 P.M., New York City
time, on 

 

B-19

 

that CMT Determination Date
of three Reference Dealers selected by the Calculation Agent from five
Reference Dealers selected by the Calculation Agent and eliminating the highest
quotation, or, in the event of equality, one of the highest, and the lowest
quotation or, in the event of equality, one of the lowest, for U.S. Treasury
securities with an original maturity equal to the particular Index Maturity, a
remaining term to maturity no more than one year shorter than that Index
Maturity and in a principal amount that is representative for a single
transaction in the securities in that market at that time;

 

(e) if fewer than five but more than two
of the prices referred to in clause (d) are provided as requested, the
rate on the particular CMT Determination Date calculated by the Calculation
Agent based on the arithmetic mean of the bid prices obtained and neither the
highest nor the lowest of the quotations shall be eliminated;

 

(f) if the Calculation Agent cannot
obtain three prices referred to in clause (d), the “CMT Rate” for such Interest
Reset Period shall be calculated by the Calculation Agent and will be a yield
to maturity based on the arithmetic mean of the secondary market bid prices as
of approximately 3:30 P.M., New York City time, on that CMT Determination
Date of three Reference Dealers selected by the Calculation Agent from five
Reference Dealers selected by the Calculation Agent and eliminating the highest
quotation or, in the event of equality, one of the highest and the lowest
quotation or, in the event of equality, one of the lowest, for U.S. Treasury
securities with an original maturity of the number of years that is the next
highest to the Index Maturity specified on the face hereof and a remaining term
to maturity closest to the Index Maturity specified on the face hereof and in
an amount that is representative for a single transaction in the securities in
that market at that time;

 

(g) if fewer than five but more than two
prices referred to in clause (f) are provided as requested, then the CMT
Rate will be calculated by the Calculation Agent based on the arithmetic mean
of the offer prices obtained and neither the highest or the lowest of the
quotations will be eliminated; or

 

(h) if fewer than three prices referred
to in clause (f) are provided as requested, the “CMT Rate” will be the CMT
Rate in effect on such CMT Determination Date, or if none, the Initial Interest
Rate.

 

If
two U.S. Treasury securities with an original maturity greater than the Index
Maturity specified on the face hereof have remaining terms to maturity equally
close to the particular Index Maturity, the quotes for the U.S. Treasury
security with the shorter original remaining term to maturity will be used.

 

“CMT Reuters Page” means the display on Reuters (or any
successor service) on the page designated on the face hereof (or any other
page as may replace such page on that service for the purpose of
displaying Treasury Constant Maturities as reported in H.15(519)).  If no such page is specified on the face
hereof, the CMT Reuters Page shall be CMT Reuters Page FEDCMT, for
the most recent week.

 

The
“Calculation Date” pertaining to any CMT
Determination Date shall be the earlier of (i) the tenth day after such
CMT Determination Date or, if such day is not a Business Day, the next Business
Day or (ii) the Business Day immediately before the applicable Interest
Payment Date or Maturity, as the case may be.

 

If
this Note is a Global Security, ownership of beneficial interests herein will
be limited to participants in DTC or persons that hold interests through such
participants, and the transfer of beneficial

 

B-20

 

interests herein will be effected only through
records maintained by DTC (and with respect to interests of participants in
DTC) and by participants in DTC or persons that may hold interests through such
participants (with respect to persons other than participants in DTC).

 

As
provided in the Indenture and subject to certain limitations therein set forth,
this Note is exchangeable for a like aggregate principal amount of Notes of
different authorized denominations, as requested by the Person surrendering the
same.

 

If
this Note is a Global Security, this Note is exchangeable only if (x) DTC
notifies the Company that it is unwilling or unable to continue as depositary
for this Note or if at any time DTC ceases to be in good standing under the
Securities Exchange Act of 1934, as amended, and the Company does not appoint a
successor depositary within 90 days after the Company receives such notice or
becomes aware that DTC is no longer in good standing; or (y) the Company
in its sole discretion determines that this Note shall be exchanged for
Certificated Notes in definitive form, provided that the definitive Notes so
issued in exchange for this Note shall be in authorized denominations and be of
like aggregate principal amount and tenor and terms as the portion of this Note
to be exchanged.  Except as provided
above, owners of beneficial interests in this Note (if a Global Security) will
not be entitled to have this Note or Notes represented by this Note registered
in their names or receive physical delivery of Notes in definitive form and
will not be considered the Holders hereof for any purpose under the Indenture.

 

As
provided in the Indenture and subject to certain limitations therein set forth,
this Note is transferable on the Debt Security register of the Company, upon
surrender of this Note for registration of transfer at the offices or
agencies as may be designated and maintained by the Company for such purpose in
accordance with the provisions of the Indenture,
duly endorsed by or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Debt Security registrar, duly executed by
the Holder hereof or his attorney duly authorized in writing, and thereupon one
or more new Notes of this series, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

 

As
provided in the Indenture and subject to certain limitations therein set forth,
this Note is exchangeable for a like aggregate principal amount of Notes of
different authorized denominations, as requested by the Holder surrendering the
same.

 

No
service charge shall be made for any such registration of transfer or exchange,
but the Company may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection therewith.

 

The
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for purposes
of receiving payment as herein provided and for all other purposes, whether or
not this Note be overdue, and neither the Company, the Trustee nor any such
agent shall be affected by notice to the contrary.

 

If
an Event of Default shall occur and be continuing with respect to the Notes,
the unpaid principal of all Notes may be declared due and payable in this
manner and with the effect provided in the Indenture.

 

The
Indenture contains provisions permitting the Company and the Trustee, with the
consent of the Holders of not less than 66 2/3% in aggregate principal amount
of each series of the Debt Securities at the time outstanding (as defined in
the Indenture) to be affected (each series voting as a class), evidenced as in
the Indenture provided, to execute supplemental indentures adding any provisions
to or changing in any manner or eliminating any of the provisions of the
Indenture or of any supplemental indenture or 

 

B-21

 

modifying in any manner the rights of the
Holders of the Debt Securities of all such series; provided, however,
that no such supplemental indenture shall, among other things, (i) extend
the fixed maturity of any Debt Security, or reduce the rate or extend the time
of payment of interest thereon, or reduce the principal amount or premium if
any, thereon, or make the principal thereof, or premium if any, or interest, if
any, thereon payable in any coin or currency other than that hereinabove
provided, without the consent of the Holder of each Debt Security so affected
or reduce the amount of principal of an Original Issue Discount Security that
would be due and payable upon acceleration of maturity thereof, or (ii) reduce
the aforesaid percentage of Debt Securities the Holders of which are required
to consent to any such supplemental indenture, without the consent of Holders
of each Debt Security so affected.  The
Indenture also contains provisions permitting the Holders of a majority in
aggregate principal amount of the Notes at the time Outstanding, as defined in
the Indenture, on behalf of the Holders of all the Notes, to waive compliance
by the Company with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Notes issued upon the transfer hereof or in
exchange therefor or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note or upon any Note issued upon the transfer hereof
or in exchange therefor or in lieu hereof.

 

No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, places and rate, and in the coin and currency, herein prescribed.

 

No
recourse shall be made for the payment of the principal of or the interest on
this Note or for any claim based herein or otherwise in any manner in respect
hereof, or in respect of the Indenture, against any incorporator, stockholder,
officer or director, as such past, present or future, of the Company or of any
predecessor or successor corporation, whether by virtue of any constitutional
provision or statute or rule or law, or by the enforcement of any
assessment or penalty or in any other manner, all such liability being
expressly waived and released by the acceptance hereof and as part of the
consideration for the issue hereof.

 

All
terms used in this Note that are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

 

B-22

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

 

	
  TEN
  COM - as tenants in common

  	
   

  	
  UNIF
  GIFT MIN ACT-

  
	
   

  	
   

  	
  Custodian
  Under Uniform Gifts to Minors Act

  
	
  TEN
  ENT - as tenants by the entireties

  	
   

  	
         (Cust)
                
  (Minor)

  
	
   

  	
   

  	
   

  	
   

  
	
  JT
  ENT - 

  	
  as
  joint tenants with right of survivorship and not as tenants in common

  	
   

  	
  (State)

  
					

 

Additional abbreviations may
also be used though not in the above list

 

	
   

  

 

OPTION TO ELECT REPAYMENT

 

The undersigned hereby irrevocably requests and instructs the Company
to repay $                    
principal amount of the within Note, pursuant to its terms, on the “Optional
Repayment Date” first occurring after the date of receipt of the within Note as
specified below, together with interest thereon accrued to the date of
repayment, to the undersigned at:

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Please
  Print or Type Name and Address of the Undersigned)

  	
   

  

 

and to issue to the undersigned, pursuant to the terms of the
Indenture, a new Note or Notes representing the remaining principal amount of
this Note.

 

For this Option to Elect Repayment to be effective, this Note with the
Option to Elect Repayment duly completed must be received by the Company within
the relevant time period set forth above at its office or agency in the Borough
of Manhattan, the City and State of New York, located initially at the office
of the Registrar at The Bank of New York Mellon Trust Company, N.A.,                               ,
New York, New York             ,
Attention:  Corporate Trust
Administration.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Note:  The signature to this Option to Elect
  Repayment must correspond with the name as written upon the face of the
  within Note in every particular without alteration or enlargement or any
  change whatsoever.

  

 

B-23

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

 

	
  Please
  Insert Social Security or Other

  	
   

  
	
          Identifying
  Number of Assignee:

  	
   

  	
   

  

 

Please Print or Typewrite Name and Address of Assignee:

 

	
   

  	
   

  

 

the within Instrument of McDONALD’S CORPORATION and all rights
thereunder, hereby does irrevocably constitute and appoint

 

	
   

  	
  Attorney

  

 

to transfer such Note on the books of McDONALD’S CORPORATION with full
power of substitution in the premises.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  

 

 

NOTICE:  The signature to this
assignment must correspond with the name as it appears upon the face of the
Note in every particular, without alteration or enlargement or any change whatsoever.

 

B-24United States Securities & Exchange Commission EDGAR Filing

EXHIBIT 10.1

CREDIT ENHANCEMENT AND FINANCING SECURITY AGREEMENT

THIS CREDIT ENHANCEMENT AND FINANCING SECURITY AGREEMENT (the "Agreement") is made as of May 29, 2009 (the "Effective Date"), by and between GelTech Solutions, Inc., a Delaware corporation (the "Company"), and Michael Reger (the "Reger"). 

WITNESSETH

WHEREAS, Reger to expects obtain a revolving line of credit (the "Loan"), in the principal amount of $2,500,000.00 from Enterprise Bank (the "Bank") pursuant to a certain Revolving Line of Credit Loan Agreement between the Company and the Bank (the "Loan Agreement" ) and a related Revolving Promissory Note (the "Note" ) and a Mortgage and Security Agreement (“Mortgage”) (the Loan Agreement, Note and Mortgage are hereinafter sometimes referred to as the “Loan Documents”); 

WHEREAS, Reger is personally responsible for the Loan;

WHEREAS, the Bank has provided the Loan to Reger on the condition that any disbursements under the Loan made to Reger must be advanced to the Company for the business purposes of using such advancement towards the Company’s operating capital and for the payment of the Company’s direct costs associated with acquisition of inventory;

WHEREAS, under the Loan Agreement, Michael Cordani (“Cordani”) and Joseph Ingarra (“Ingarra”) (collectively, Cordani and Ingarra are hereinafter referred to as the “Company’s Officers”) are Designated Persons authorized to request advances from the Loan (the “Requested Advances”);

WHEREAS, concurrent with Reger obtaining the Loan from the Bank, the Company will obtain a revolving line of credit from Reger (“Company’s Credit Line”) and will enter into a Revolving Line of Credit Agreement (“the Line of Credit Agreement”) and Revolving Promissory Note (the “Company Note”), which Credit Line Agreement and Company Note will contain similar terms of that of the Loan Agreement and Note executed by Reger in favor of the Bank (collectively, the Line of Credit Agreement and the Company Note are hereinafter sometimes referred to as the (“Company Loan Documents”);

WHEREAS, when the Requested Advances are made from the Loan by the Company’s Officers, the Requested Advances will be advanced to the Company and the Company will be obligated under the Company Note to repay Reger pursuant to the terms of the Line of Credit Agreement; 

WHEREAS, Reger has issued two Line of Credits to the Company: (1) a  $1,000,000.00  line of credit to the Company (“$1MM LOC”), on which the Company has drawn against the $1MM LOC an amount equal to $773,000.00 plus all accrued and unpaid interest thereon as of the Effective Date of this Agreement (the “$1MM LOC Outstanding Balance”) and (2) a $4,000,000.00 line of credit to the Company (“$4MM LOC”), on which the Company has drawn 

1

against the $4MM LOC an amount equal to $___________ plus accrued and unpaid interest thereon as of the Effective Date of the this Agreement (the $4MM LOC Outstanding Balance”); 

WHEREAS, as a condition precedent to the Bank making the Loan, Reger will cause  MR 1011, LLC, a Florida limited liability company owned wholly by Reger (“MR 1011”),  to enter into the Mortgage with the Bank;

WHEREAS, the Mortgage will grant a first-priority security interest in certain real property as described and set forth on Exhibit “A”) as collateral for the making of the Loan and repayment of the Note (the “Pledged Collateral”);

WHEREAS, in addition to the Pledged Collateral, the Loan Documents require that Reger make further security obligations in favor of the Bank in the form of affirmative covenants which will restrict the use of the Pledged Collateral and further burden Reger with continual reporting obligations to the Bank  (the “Affirmative Obligations”);

WHEREAS, subject to the closing of the Loan and in accordance with the terms of this Agreement, Reger has agreed to the Mortgage and Affirmative Obligation set forth in the Loan Documents; and 

WHEREAS, as consideration for Reger to  grant, in favor of the Bank, a security interest in the Pledged Collateral and agree to be burdened by the Affirmative Obligations set forth in the Loan Documents, the Company has agreed, upon the terms and conditions set forth herein, to (i) issue Reger 150,000 shares of common stock, par value $ .001 per share (the "Common Stock"), (ii) pay a Loan Acquisition Fee (as described below), (iii) payoff the $1MM LOC Outstanding Balance and the $4MM LOC Outstanding Balance  and cancel the  $1MM LOC and the $4MM LOC and (iv) enter into the Company Loan Documents. 

NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties hereto, the Company and Reger agree as follows:

1.

CONSIDERATION.

1.1

PLEDGE DOCUMENTS. In consideration of the Company’s issuance of the Common Stock and payment of the Loan Acquisition Fee (as defined in Section 1.2 below), Reger hereby agrees that he shall, or he shall cause MR 10011, as the case may be, at Closing (as defined in Section 2.1 below), execute and deliver, in favor of the Bank, whatever documentation the Bank reasonably requires in connection with the Loan, including but not limited to executing the Note, Loan Agreement and Mortgage. 

1.2

ISSUANCE OF COMMON STOCK AND PAYMENT OF LOAN AQUISITION FEE. In consideration of Reger causing MR 1011 to execute a Mortgage in favor of the Bank and providing to the Bank an additional security for payment of the Note through Reger’s Affirmative Obligations contained in the Loan Documents, the Company hereby agrees that it shall at Closing (as defined in Section 2.1 below) (a) issue to the 

2

Reger the Common Stock; (b) pay Reger a cash fee (the "Loan Acquisition Fee") in the amount of $60,000.00, (c) pay to the Reger the $1MM LOC Outstanding Balance and the $4MM LOC Outstanding Balance  and cancel both the $1MM LOC and the $4MM LOC and (d) enter into and execute Company Loan Documents for a $2,500,000.00 line of credit. 

2.

THE CLOSING. 

2.1

CLOSING DATE. The parties agree to effect the transactions contemplated hereby (the "Closing") contemporaneously with the execution of this Agreement, which Closing shall be contemporaneous with the closing of the Loan. 

2.2

CLOSING DELIVERABLES. (a) At the Closing, the Company shall deliver, or cause to be delivered, as the case may be, to Reger: (i) an executed copy of this Agreement; (ii) a Board Resolution executed by the Board of the Directors of the Company and (iii) the Loan Acquisition Fee and (iv) Revolving Line of Credit Loan Cancelation Agreement, (iv) the Company Loan Documents and (v) pay all Initial Expenses (as defined in Section 5 below). (b) At the Closing, Reger shall deliver or cause to be delivered to the Company (i)  an executed copy of this Agreement and (ii) Reger shall, or Reger shall cause, as the case may be, to deliver to the Bank duly executed copies of the Loan Documents 

3.

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY. The Company hereby represents warrants and covenants to REGER and agrees as follows: 

3.1

CORPORATE POWER. The Company is a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware and is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse effect on the Company’s business, properties, or financial condition. The Company has all requisite corporate power and authority to execute and deliver this Agreement and all agreements related to obtaining the Company’s Credit Line and to carry out and perform its obligations hereunder and thereunder. The Company has all requisite corporate power and authority to issue the Common Stock and pay the Loan Acquisition Fee.

3.2

AUTHORIZATION. This Agreement has been duly authorized, executed and delivered by the Company. All corporate action on the part of the Company and its shareholders, directors and officers necessary for the authorization, execution and delivery of this Agreement, the execution of the agreements related to the Loan, the issuance of the of Common Stock, the consummation of the other transactions contemplated hereby and the performance of all the Company's obligations hereunder have been taken. This Agreement constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to (i) laws of general application relating to bankruptcy, insolvency and the relief of debtors, (ii) rules of law governing specific performance, injunctive relief and other 

3

equitable remedies, and (iii) the limitations imposed by applicable federal or state securities laws. The shares of Common Stock issued to Reger have been duly authorized.

3.3

GOVERNMENTAL CONSENTS. All consents, approvals, orders, or authorizations of, or registrations, qualifications, designations, declarations, or filings with, any governmental authority, required on the part of the Company in connection with the valid execution and delivery of this Agreement, the offer and issuance of the Common Stock have been obtained and will be effective at the Closing, except for notices required or permitted to be filed thereafter with certain state and federal securities commissions, which notices shall be filed on a timely basis. 

3.4

LITIGATION. There is no proceeding involving Company pending or, to the knowledge of Company, threatened before any court or governmental authority, agency or arbitration authority which would prohibit the Company from entering into this Agreement or the Company Loan Documents or any document or undertakings related thereto. 

3.5

NO CONFLICTING AGREEMENTS. There is no charter, bylaw, stock provision, partnership agreement or other document pertaining to the organization, power or authority of Company and no provision of any existing agreement that would be in conflict with this Agreement or the Company Loan Documents or any document or undertakings related thereto. 

3.6

USE OF PROCEEDS FROM LOAN. The Company shall use the proceeds of the Company’s Credit Line solely for working capital of the Company and to acquire inventory in strict compliance with the Company Loan Documents.

4.

REPRESENTATIONS, WARRANTIES AND COVENANTS OF REGER. Reger hereby represents warrants and covenants to Company and agrees as follows:

4.1

AUTHORIZATION. This Agreement has been duly authorized, executed and delivered by Reger.  The execution of this Agreement and the agreements related to the Loan and all Loan Documents constitute a legal, valid and binding obligation of Reger enforceable against the Reger in accordance with its terms, subject to (i) laws of general application relating to bankruptcy, insolvency and the relief of debtors, (ii) rules of law governing specific performance, injunctive relief and other equitable remedies, and (iii) the limitations imposed by applicable federal or state securities laws.

4.2

LITIGATION. There is no proceeding or litigation involving Reger pending or, to the knowledge of Reger, threatened before any court or governmental authority, agency or arbitration authority which would prohibit Reger from entering into this Agreement or the Loan Documents. 

4.3

USE OF PROCEEDS FROM LOAN. Reger shall use the proceeds of the Loan in strict compliance with the Loan Documents.

4

5

REIMBURSEMENT OF PAYMENTS IN CONNECTION WITH LOAN DOCUMENTS AND THIS AGREEMENT. (a) The Company hereby agrees to pay to Reger (i) all reasonable and documented costs and expenses (including closing costs and reasonable legal expenses associated with the Loan) incurred or expended by Reger in connection with (x) Reger’s negotiation, drafting and execution of this Agreement, the Loan Documents, the drafting and negotiation of the  Company’s Loan Documents and any agreements relating to its obligations under this Agreement,  and Reger’s review of all documents in connection with the Loan, including the Note, Loan Agreement and Mortgage (the "Initial Expenses") and (y) the Bank's taking any action against Reger to enforce the Bank's rights under the Mortgage or any one of the Loan Documents in the event that the cause of action is related to a default by the Company on its obligation under the Company Loan Documents (together with the Initial Expenses, the "Expenses"). Notwithstanding the foregoing or anything else to the contrary in this Agreement, the Company shall not be required to reimburse Reger for Expenses that Reger would not have incurred but for  Reger's failure to satisfy the terms and conditions of this Agreement or the Mortgage and that such failure is not a result of default of an obligation by the Company under the Company Loan Document; (b) Each payment to be made by the Company hereunder shall be due within fifteen (15) days of the receipt by the Company of a request for reimbursement from Reger; notwithstanding the foregoing, the Company shall reimburse Reger for the Initial Expenses on day of the Closing; (c) All payments payable by the Company hereunder shall be made in immediately available funds to an account that Reger shall designate from time to time in writing to the Company. Payments due shall be made with interest thereon from the due date until payment thereof by the Company, at the Prime Rate offered by the Bank, plus 5%, and in effect as such due date. For the avoidance of doubt, the due date for any reimbursement request shall be fifteen (15) days after the date of a written reimbursement request made by Reger and (d) the Company shall make the payments specified above even if there is a dispute about whether the Bank is or was entitled to take any action to enforce its rights under the Mortgage or any one of the Loan Document. 

6.

MISCELLANEOUS. 

6.1

BINDING AGREEMENT; NON-ASSIGNMENT. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors. This Agreement is not assignable without the express written consent of both parties, which consent may be withheld for any reason. Nothing in this Agreement, express or implied, is intended to confer upon any third party any rights, remedies, obligations, or liabilities under or by reason of this Agreement except as expressly otherwise provided in this Agreement. 

6.2.

SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to the benefit of the transferees, successors, assigns, heirs, beneficiaries, executors, administrators, partners, agents, employees, and representatives of each party hereto.

6.3

GOVERNING LAW. This Agreement shall be governed by and construed under the laws of the State of Florida, irrespective of any contrary result otherwise required under the conflict or choice of law rules of Florida. 

5

6.4

COUNTERPARTS. This Agreement may be executed in counterparts, each of which shall be deemed an original, but both of which together shall constitute one and the same instrument.

6.5

TITLES AND SUBTITLES. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 

6.6

NOTICES. Any notice required or permitted under this Agreement must be given in writing and shall be deemed effectively given upon personal delivery or upon deposit with the United States Post Office, postage prepaid, if to the Company, addressed to Joseph Ingarra , Chief Operating Officer, GelTech Solutions, Inc.1460 Park Lane South Suite 1, Jupiter, Florida 33458, with a copy to Fred C. Cohen, Esq., Cohen, Norris, Scherer, Weinbeger & Wolmer, 712 U.S. Highway One Suite, 400 North Palm Beach, Florida 33408, or to the Michael Reger 777 Yamato Road Suite 300, Boca Raton, Florida 33431 with a copy to David W. Jamison, Jr. Esq. at 7501 Red Bay Place, Coral Springs, Florida 33065 or at such other address as a party may designate by ten days' advance written notice to the other party.

6.7

MODIFICATION; WAIVER. No modification or waiver of any provision of this Agreement or consent to departure therefrom shall be effective unless in writing and approved by the Company and Reger

6.8

FURTHER ASSURANCES. The parties shall take such further actions, and execute, deliver and file such documents, as may be necessary or appropriate to effectuate the intent of this Agreement.

6.9

CONSTRUCTION. The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party. Any references to any federal, state, local or foreign statute or law shall also refer to all rules and regulations promulgated thereunder, unless the context otherwise requires. Unless the context otherwise requires: (a) a term has the meaning assigned to it by this Agreement; (b) forms of the word "include" mean that the inclusion is not limited to the items listed; (c) "or" is disjunctive but not exclusive; (d) words in the singular include the plural, and in the plural include the singular; (e) provisions apply to successive events and transactions; (f) "hereof", "hereunder", " herein" and " hereto" refer to the entire Agreement and not any section or subsection; and (g) "$" means the currency of the United States. 

6.10

ENTIRE AGREEMENT. This Agreement and the Exhibits hereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and no party will be liable or bound to the other in any manner by any representations, warranties, covenants and agreements other than those specifically set forth herein.

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6.11

VENUE. The parties irrevocably submit to the exclusive jurisdiction of the courts of State of Florida located in Palm Beach County and federal courts of the United States for the Southern District of Florida in respect of the interpretation and of the provisions of this Agreement and in respect of the transactions contemplated hereby.

6.12

SURVIVAL OF REPRESENTATIONS AND WARRANTIES, ETC. All representations, warranties and covenants made by Reger or the Company herein or in any certificate or other instrument delivered by and pursuant hereto or in connection herewith, shall be deemed to have been relied upon by all parties hereto, and shall survive throughout the term of this Agreement and for two years thereafter regardless of any investigation made by or on behalf of any party hereto.

6.13

PERFORMANCE. Time is of the essence in this Agreement.

This Agreement is signed and delivered on the date and year first above set forth in which may be executed in multiple counterparts each of which shall be an original.

			
	                                                

	GELTECH SOLUTIONS, INC, a Delaware Corporation

	 
	 
	 

	 
	 
	 

	 
	By:

	                                          

	 
	 
	 

	 
	Name:

	 

	 
	 
	 

	 
	Title:

	 

	 
	 
	 

	 
	 
	 

	 
	 

	 
	Michael Reger

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