Document:

Directors' Stock Plan

 Exhibit 10(a). McDonald’s Corporation Directors’ Stock Plan 
  
 Section 1. Introduction 
  

	1.1	The Plan. McDonald’s Corporation (the “Company”) first established the McDonald’s Directors’ Deferred Compensation Plan (the “Plan”) for
the members of its Board of Directors who are not officers or employees of the Company (“Outside Director” or “Outside Directors”) on July 1, 1984. Effective January 19, 1995, in order to reflect the Plan’s focus on creating
an identity of interest between the Company’s Outside Directors and its shareholders, the Plan was renamed the “Directors’ Stock Plan.” The Plan was later amended and restated effective September 19, 1996, July 15, 1997, May 17,
2001, and December 3, 2003. Effective December 2, 2004, the Plan is further amended and restated so as to bring it into compliance with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) as to
the Nongrandfathered Accounts (as defined in Section 2.4 below). 

  

	1.2	Purpose. The purposes of the Plan are: to advance the Company’s interests by attracting and retaining well-qualified Outside Directors and Senior Directors (together,
“Directors”); to provide such individuals with incentives to put forth maximum efforts for the long term success of the Company’s business; and to provide a vehicle to increase the identity of interest between Directors and
shareholders. 

  
 Section 2. Benefits 
  

	2.1	Elected Deferred Benefits. Each Director may elect in accordance with Section 3.1 to defer all or any part of the fees to be received by such Director for service on the
Board of Directors of the Company (including annual and committee retainers and Board and committee meeting fees, to the extent applicable)(“Elected Deferred Benefits”). Elected Deferred Benefits shall be credited to an account for each
Director (an “Account”) on a quarterly basis at such a time and in such a manner as is reasonably determined by the Controller of the Company. Each Director’s Account may be further divided into amounts deferred pursuant to a
particular year’s deferral election. 

  

	2.2	Stock Equivalent Benefit. 

  

	 	(a)	In addition to any Elected Deferred Benefits, each Director shall receive a stock equivalent benefit, which shall be determined in the manner described in this Section 2.2
(“Stock Equivalent Benefit”) and credited to his or her Account. 

  

	 	(b)	On January 19, 1995, an amount equal to $17,500 multiplied by the number of an Outside Director’s full years of service (up to a maximum of ten years) shall be accrued for such
Outside Director’s Stock Equivalent Benefit. After January 19, 1995, and before January 1, 2004, for each Director, an amount equal to $17,500 shall be accrued for such Director’s Stock Equivalent Benefit at the end of each full year of
service (up to a maximum of ten years), with an additional accrual as of December 31, 2003, for each Director who has not completed ten full years of service before that date, in an amount equal to (x) $17,500 times (y) a fraction, the numerator of
which is the number of days from the day after end of the Director’s most recently completed full year of service through December 31, 2003 (or, if the Director has not yet completed a full year of service, from the date he or she became a
member of the Board), and the denominator of which is 365. In measuring full years of service for purposes of this Section 2.2(b), Board service shall commence as of the first Board meeting or committee meeting for which the Director received
compensation and end with the last Board meeting or committee meeting for which the Director received compensation. 

  

	 	(c)	As of December 31 of each calendar year beginning with 2004, there shall be accrued for each individual who was a Director for all or any portion of that calendar year a Stock
Equivalent Benefit equal to $30,000 times, in the case of an individual who was not a Director for the entire calendar year, a fraction, the numerator of which is the number of days during that calendar year on which such individual was a Director,
and the denominator of which is the total number of days in that calendar year. 

  

	2.3	Adjustment of Accounts. Each Director’s Account shall be adjusted periodically (but no less than once each year), at such time or times and in such manner as is
reasonably determined by the Controller of the Company and as of the date of any payment from the Account, in order to treat such Account as though all amounts credited to it had been invested in shares of McDonald’s Stock by reflecting income,
gains and losses in the amounts and at the times as such would have occurred if an amount equal to each credit to such Account were invested in shares (including fractional shares) of McDonald’s Stock at a per-share price equal to the market
value of a share of McDonald’s Stock on the date such credit was made (determined in accordance with Section 5.7). 

  

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	2.4	Grandfathered and Nongrandfathered Accounts. The Account of each Director shall be subdivided into a portion representing compensation that is not subject to Section 409A
because it was deferred on or before December 31, 2004, and the earnings thereon (the “Grandfathered Account”) and a portion representing all other compensation (the “Nongrandfathered Account”). 

  
 Section 3. Deferrals; Deferral Elections 
  

	3.1	Deferral Elections. A person who becomes a Director during a calendar year may elect by a written notice delivered to McDonald’s Corporation within 30 days after
becoming a Director to receive Elected Deferred Benefits as provided in Section 2.1 with respect to fees for services performed following the delivery of such notice to McDonald’s Corporation. Each other Director may elect by filing a written
election with McDonald’s Corporation on or before December 31 of a given calendar year to receive Elected Deferred Benefits as provided in Section 2.1 for the following calendar year. Any election made pursuant to this Section 3.1 shall be
irrevocable. 

  

	3.2	Specified Payment Dates. A Director electing to defer Elected Deferred Benefits pursuant to an election filed after July 15, 1997, may make an irrevocable election to have
those Elected Deferred Benefits paid promptly following, or beginning promptly following, a Specified Payment Date (as defined below). Notwithstanding any such election, if the Director’s Termination or death occurs on a day before the
Specified Payment Date, the Special Payment Date election shall not apply, and such Elected Deferred Benefits shall be paid in accordance with Section 3.3 below. A “Specified Payment Date” means a date specified by the Director at the time
he or she elects to defer the Elected Deferred Benefits in question, which date must be March 31, June 30 or September 30 of a specified year in the future, but no earlier than the March 31st of the calendar year following the year in which the
deferred amounts would have been paid (if they had not been deferred). “Termination” means (1) in the case of an Outside Director, his or her ceasing to be a member of the Board of Directors for any reason other than his or her death,
unless he or she becomes a Senior Director at that time, and (2) in the case of a Senior Director, his or her ceasing to be a Senior Director for any reason other than his or her death; provided, that with respect to a Director’s
Nongrandfathered Account, the term “Termination” shall be interpreted in a manner consistent with the definition of “separation from service as determined by the Secretary” within the meaning of Section 409A(a)(2)(A)(i).

  

	3.3	General Payment Date. The balance in a Director’s Account, other than any portion to which a Specified Payment Date applies under Section 3.2, shall be paid, or begin to
be paid, in April of the calendar year following the year of the Director’s Termination or death, whichever occurs first (the “General Payment Date” and, together with any Specified Payment Dates, the “Payment Dates”).

  
 Section 4. Payment of Benefits 
  

	4.1	Time and Method of Payment. A Director’s Account shall automatically be paid in a single lump sum promptly following the applicable Payment Date(s), unless and to the
extent a valid written installment distribution election has been filed in accordance with this Section 4.1 and Section 4. Subject to Section 4.4(b) if applicable, an installment distribution election may apply to all or any portion of the Account
for which payment is to be made, and shall specify the period of years (up to a maximum of 15 years) over which installment payments are to be made. Installment payments shall be made annually in substantially equal installments over the installment
period specified, beginning at or promptly following the applicable Payment Date. Each installment payment shall be computed by dividing the balance of the Account that is to be paid in installments by the number of payments remaining in the
installment period. 

  

	4.2	Form of Payment. All payments shall be made in cash, in an amount equal to the market value of a share of McDonald’s Stock (determined in accordance with Section 5.7) on
the day before the date of payment, times the number of shares and fractions thereof for which payment is being made. 

  

	4.3	Beneficiaries. Each Director shall have the right to name a beneficiary or beneficiaries who shall receive the benefits hereunder in the event of the Director’s death
prior to the payment of his or her entire Account. If the Director fails to designate beneficiaries or if all such beneficiaries predecease the Director, benefits shall be paid to the Director’s surviving spouse, and if none, then to the
Director’s estate. To be effective, any beneficiary designation shall be filed in writing with McDonald’s. A Director may revoke an existing beneficiary designation by filing another written beneficiary designation with McDonald’s.
The latest beneficiary designation received by McDonald’s shall be controlling. 

  

	4.4	Installment Elections. 

  

	 	(a)	This Section 4.4(a) shall apply to the Grandfathered Accounts only. An installment election must be made on or before December 31 of the calendar year preceding the calendar year in
which the applicable Payment Date occurs. Installment distribution elections with respect to a Director’s Account may be made during the 

  

 52    McDonald’s Corporation 

 Director’s lifetime only by the Director. Except as provided below in this Section 4.4, an
installment election is irrevocable once made, and payments will be made in accordance with it notwithstanding the subsequent Termination or death of the Director. If a Director’s Termination occurs before a Specified Payment Date for any
portion of his or her Account, the Director may, on or before December 31 of the calendar year in which the Termination occurs, revoke or change an installment election the Director had made with respect to that portion of his or her Account before
the Termination. If a Director dies before his or her Termination, any installment elections with respect to any portions of his or her Account to which a Specified Payment Date before the date of death applied shall continue to govern the payout of
those portions of his or her Account, but any other installment elections made by such Director before his or her death shall automatically be considered revoked, the person(s) entitled to receive payment of the remainder of his or her Account under
Section 4.3 shall be entitled to make an irrevocable installment election at any time on or before December 31 of the calendar year in which the Director’s death occurs, and the remainder of the Director’s Account shall be paid to such
person(s) in accordance with Section 4.1, taking into account any such installment elections. 
  

	 	(b)	This Section 4.4(b) shall apply to the Nongrandfathered Accounts only. A Director may make an installment election for each calendar year’s Stock Equivalent Benefit and Elected
Deferred Benefit (if any). Such an installment election must be made at the time the Director elects to defer the Elected Deferred Benefit for the year in question or, if no Elected Deferred Benefit is elected for that year, not later than the
latest time at which such an election would be permitted. An installment election is irrevocable once made, and payments of both the Stock Equivalent Benefit and any Elected Deferred Benefit for the applicable calendar year will be made in
accordance with it notwithstanding the subsequent Termination or death of the Director, except to the extent that the Committee determines, in its sole discretion, to establish procedures under which installment elections may be revoked or changed
in compliance with Section 409A of the Code. 

  

	4.5	Funding. Benefits payable under the Plan to any person shall be paid directly by the Company. The Company shall not be required to fund or otherwise segregate assets to be
used for payment of benefits under the Plan. While the Company may cause investments in shares of McDonald’s Stock to be made through open market purchases in amounts equal or unequal to amounts payable hereunder, the Company shall not be under
any obligation to make such investments and any such investment shall remain subject to the claims of its general creditors and the amounts payable to any Directors under the Plan shall not be affected by any such investment. Notwithstanding the
foregoing, the Company, in its discretion, may maintain one or more trusts to hold assets to be used for payment of benefits under the Plan; provided that the assets of such trust shall be subject to the creditors of the Company in the event that
the Company becomes insolvent or is subject to bankruptcy or insolvency proceedings. Any payments by such a trust of benefits provided hereunder shall be considered payment by the Company and shall discharge the Company of any further liability for
the payments made by such trust. 

  
 Section 5. General
Provisions 
  

	5.1	Plan Administration. The Plan shall be administered by a committee appointed from time to time by the Board of Directors (the “Committee”). The Committee shall have
discretionary authority to interpret and administer the Plan, to correct errors in administration, and otherwise to implement the Plan, in each case consistent with its purposes and intent. The Committee shall also have the power to take such other
actions as are necessary so that transactions pursuant to the Plan do not result in liability under Section 16(b) of the Securities Exchange Act of 1934. All actions of the Committee with respect to the Plan shall be final and binding on all
persons. 

  

	5.2	Retention Rights. Establishment of the Plan shall not be construed to give an Outside Director or Senior Director the right to be retained on the Board of Directors or to any
benefits not specifically provided by the Plan. 

  

	5.3	Interests Not Transferable. Except as to withholding of any tax required under the laws of the United States or any state or locality and except with respect to designation
of a beneficiary to receive benefits in the event of the death of a Director, no benefit payable at any time under the Plan shall be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment, or other legal process, or
encumbrance of any kind. Any attempt by a Director to alienate, sell, transfer, assign, pledge or otherwise encumber any such benefits whether current or thereafter payable, shall be void. No benefit shall, in any manner, be liable for or subject to
the debts or liabilities of any person entitled to such benefits. If any person shall attempt to, or shall alienate, sell, transfer, assign, pledge or otherwise encumber his or her benefits under the Plan, or if by any reason of his or her
bankruptcy or other event happening at any time, such benefits would devolve upon any other person or would not be enjoyed by the person entitled thereto under the Plan, then the Company in its discretion, may terminate the interest in any such
benefits of the person entitled thereto under the Plan and hold or apply them to or for the benefit of such person entitled thereto under the Plan or his or her spouse, children or other dependents, or any of them, in such manner as the Company may
deem proper. 

  

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	5.4	Amendment and Termination. The Board intends the Plan to be permanent, but reserves the right at any time to modify, amend or terminate the Plan, provided, however, that
benefits credited as provided herein shall constitute an irrevocable obligation of the Company. 

  

	5.5	Controlling Law. The law of Illinois, except its law with respect to choice of law, shall be controlling in all manners relating to the Plan. 

  

	5.6	Number. Words in the plural shall include the singular and the singular shall include the plural. 

  

	5.7	Value of McDonald’s Stock. The market value of McDonald’s Stock for purposes hereof on a given day shall be the closing price, at the close of normal trading hours,
of McDonald’s Stock on the New York Stock Exchange Composite Tape on that day (or, if quotations for McDonald’s Stock are not reported on the New York Stock Exchange Composite Tape on that day, such closing price of McDonald’s Stock
on the New York Stock Exchange Composite Tape on the first day preceding such day on which such quotations are so reported). 

  

	5.8	Compliance with Section 409A. This Plan, as amended and restated as of December 2, 2004, is intended to comply with the requirements of Section 409A of the Code with respect
to the Nongrandfathered Accounts, and shall be interpreted accordingly. Notwithstanding any other provision of this Plan, no acceleration of payment of Nongrand-fathered Accounts that is not permitted by Section 409A of the Code shall be permitted,
and no amendment or termination of the Plan shall be effective to the extent that it would cause Grandfathered Accounts to be subject to Section 409A of the Code. 

  

					
	 Executed with effect as of
 the 2nd day of December
2004.
	 	McDonald’s Corporation
		
	 	 	           /S/ Gloria Santona

	 	 	By	 	Gloria Santona
	 	 	 	 	Corporate Executive Vice President,
	 	 	 	 	General Counsel and Secretary

  

 54    McDonald’s CorporationExcess Benefit and Deferred Bonus Plan

 Exhibit 10(b). McDonald’s Excess Benefit and Deferred Bonus Plan 
  
 Section 1. Introduction 
  

	1.1	The Plan. McDonald’s Corporation (the “Company”) has adopted the McDonald’s Excess Benefit and Deferred Bonus Plan (the “Plan”), as set forth
herein, as a successor plan to the McDonald’s Corporation Supplemental Profit Sharing and Savings Plan (the “Supplemental Plan”). The Supplemental Plan was amended in response to the enactment of Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”) to suspend deferrals into that plan for years after 2004. The Plan is effective as of January 1, 2005. 

  

	1.2	Purposes and Features of Plan. 

  

	 	(a)	The purposes of the Plan are (i) to provide a select group of employees with the opportunity to elect to defer compensation under the “Deferred Bonus Feature” of the Plan,
and (ii) to provide a select group of employees who participate in the McDonald’s Corporation Profit Sharing and Savings Plan or the McDonald’s Ventures 401(k) Plan (each, a “Profit Sharing Plan”) with deferred compensation under
the “Excess 401(k) Contributions Feature” of the Plan in excess of the maximum amount of 401(k) contributions and matching employer contributions that may be contributed on their behalf under the applicable Profit Sharing Plan, absent the
Limits described in Section 3.2(b) below. 

  

	 	(b)	The “Participants” in each feature of the Plan will be a select group of management or highly compensated employees of the Company or an Adopting Subsidiary. The
Participants in the Deferred Bonus Feature are described in Section 2 below. The “Participants” in the Excess 401(k) Contributions Feature are described in Section 3 below. 

  

	1.3	Administration. The Plan shall be administered by a committee of three officers of the Company (the “Committee”), the members of which shall be appointed from time
to time by the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”). The Committee shall have the powers set forth in the Plan and the power to interpret its provisions. Any decisions of the
Committee shall be final and binding on all persons with regard to the Plan. 

  

	1.4	Compliance with Section 409A. The Plan is intended to comply with the requirements of Section 409A of the Code and regulations, rulings and other guidance issued thereunder
(collectively, “Section 409A”), and shall be interpreted and administered accordingly. Notwithstanding any other provision of this Plan, no acceleration of payment of Accounts that is not permitted by Section 409A shall be permitted, and
no action, amendment or termination of the Plan shall be effective to the extent that it would cause the Plan to violate the requirements of Section 409A. 

  

	1.5	Defined Terms. Capitalized terms used in this Plan that are not defined herein have the same meaning as the same term in the applicable Profit Sharing Plan. An index of terms
defined in the Plan is attached as Exhibit A to the Plan. 

  
 Section 2. Deferred Bonus Feature: Participation and Deferral Elections 
  

	2.1	Eligibility and Participation. Subject to the conditions and limitations of the Plan, an individual shall be eligible to participate in the Deferred Bonus Feature of the Plan
for a calendar year (a “Deferred Bonus Eligible Employee”) if, on the Election Due Date for such year, the individual is an employee of the Company who is in the Senior Direction Compensation Band of the Company or above (or an employee of
an Adopting Subsidiary who is in a comparable compensation band). Any Deferred Bonus Eligible Employee who makes a Bonus Deferral Election as described in Section 2.2 below and in accordance with the requirements of Sections 2.3 and 4 below shall
become a Participant, and shall remain a Participant until the entire balance of the Participant’s Account is distributed. 

  

	2.2	Deferral Elections. Subject to Sections 2.3 and 4 below: 

  

	 	(a)	Any Deferred Bonus Eligible Employee may make an election (a “Bonus Deferral Election”) to defer receipt of all or any portion (in 1% increments) of the compensation that
he or she may receive in a particular year under the McDonald’s Target Incentive Plan, any successor annual bonus plan of the Company, or any annual bonus plan of an Adopting Subsidiary, in which the Deferred Bonus Eligible Employee
participates (collectively, the “Annual Bonus Plan”) to the extent permitted by Section 2.3 below. 

  

	 	(b)	No other forms of compensation, including, but not limited to exit bonuses, severance bonuses or pro-rated annual bonuses paid under the Executive Retention Plan may be deferred
under the Deferred Bonus Feature of the Plan. 

  

 McDonald’s Corporation    55 

  

	2.3	Rules for Bonus Deferral Elections. Bonus Deferral Elections shall be made in accordance with Section 4 below. The first Bonus Deferral Elections permitted under this Plan
shall be with respect to bonuses under the Annual Bonus Plan that are earned in 2004 and to be paid in the first quarter of 2005; provided, that such Bonus Deferral Elections shall be void to the extent they are do not comply with the
requirements of Code Section 409A, unless the Company amends or modifies the Plan and/or Participants’ Bonus Deferral Elections in a manner that causes the Plan and Participants’ Bonus Deferral Elections to comply with the requirements of
Code Section 409A pursuant to Section 9.1 below. 

  
 Section 3.
Excess 401(k) Contributions Feature of Plan: Participation and Deferral Elections 
  

	3.1	Eligibility and Participation. Subject to the conditions and limitations of the Plan, an individual shall be eligible to participate in the Excess 401(k) Contributions
Feature of the Plan (an “Excess 401(k) Contributions Eligible Employee”) for a calendar year (the “Specified Year”) if: 

  

	 	(a)	the individual is an active participant in one of the Profit Sharing Plans as of the first day of the Specified Date; 

  

	 	(b)	on the Election Due Date for such Specified Year, the individual is either (i) an employee of the Company in the Direction Compensation Band of the Company or above (or an employee
of an Adopting Subsidiary in a comparable compensation band); and 

  

	 	(c)	the individual has annualized compensation determined as of a date within the calendar year preceding the Specified Year as determined by the Committee (the “Compensation
Determination Date”) in an amount that exceeds the applicable dollar amount in effect under Code Section 414(q)(1)(B)(i) for the year preceding the Specified Year. An employee’s annualized compensation shall equal the sum of the
employee’s annual base salary as of the Compensation Determination Date plus the employee’s annual bonus received under an Annual Bonus Plan in the year that includes the Compensation Determination Date (in each case determined without
regard to the employee’s elective deferrals under this Plan, a Profit Sharing Plan or otherwise). 

  
 Any Excess 401(k) Contributions Eligible Employee who makes an Excess 401(k) Contributions Deferral Election in accordance with the requirements of
Sections 3.3 and 4 below and who is thereafter credited with amounts pursuant to Section 3.2 below, shall become a Participant, and shall remain a Participant until the entire balance of the Participant’s Account is distributed. 
  

	3.2	Benefits. 

  

	 	(a)	Each Excess 401(k) Contributions Eligible Employee who makes an Excess 401(k) Contributions Deferral Election for a Specified Year shall receive as credits to his or her Account, as
provided in Section 5.1 below, an amount equal to the excess of (i) to the amount of 401(k) contributions and the associated matching employer contributions that would be allocated to his or her accounts under the applicable Profit Sharing Plan for
the Specified Year if the Limits (as defined in Section 3.2(b) below) did not apply, over (ii) the amount of 401(k) contributions and the associated matching employer contributions actually allocated to his or her accounts under the applicable
Profit Sharing Plan for the Specified Year. 

  
 If
an Excess 401(k) Contributions Eligible Employee has made a Bonus Deferral Election under Section 2 for a Specified Year, (i) for purposes of determining the amount of 401(k) contributions that would have been allocated to his or her accounts under
the applicable Profit Sharing Plan for the Specified Year if the Limits did not apply, his or compensation will not include the portion of any bonus for the Specified Year that was deferred pursuant to his or her Bonus Deferral Election for such
Specified Year; and (ii) for purposes of determining the amount of matching employer contributions that would have been allocated to his or her accounts under the applicable Profit Sharing Plan for the Specified Year if the Limits did not apply, his
or her compensation will be determined without regard to his or her Bonus Deferral Election for such Specified Year. 
  

	 	(b)	For purposes of this Plan, the “Limits” means the limitations imposed on the maximum amount of elective contributions and matching contributions that may be contributed on
behalf of the Excess 401(k) Contributions Eligible Employee under the applicable Profit Sharing Plan in which he or she participates as a result of the application of the maximum aggregate contributions imposed under Code Section 415, the maximum
amount of compensation that may be taken into account under Code Section 401(a)(17) and the maximum amount of elective deferrals imposed under Code Section 402(g). 

  

	3.3	Rules for Excess 401(k) Contributions Deferral Election. An Excess 401(k) Contributions Deferral Eligible Employee shall receive the benefits provided for in Section 3.2 for
a Specified Year only if he or she makes an election (an “Excess 401(k) Contributions Deferral Election”) in accordance with Section 4 below to participate in the Excess 401(k) Feature of the Plan and to make 401(k) contributions under the
applicable Profit Sharing Plan for the Specified Year. The first Specified Year under this Plan shall be the 2005 calendar year.  

  

 56    McDonald’s Corporation 

 Section 4. Rules for Deferral Elections 
  

	4.1	Timing for Deferral Elections. All Bonus Deferral Elections and Excess 401(k) Contributions Deferral Elections (collectively the “Deferral Elections”) must be
returned to the Committee no later than the date specified for such year by the Committee (the “Election Due Date”), but in no event later than the latest date permitted by Section 409A. Each Deferral Election shall apply only to the year
with respect to which it is made, and shall be irrevocable by the Participant and the Company as to that year, except as specifically provided in this Plan. 

  

	4.2	Tax Withholding and Other Special Rules. Notwithstanding any other provision of the Plan, an individual’s Deferral Election may not cause an individual’s cash
compensation, payable after taking into account the Deferral Election and all other applicable deductions and withholdings, to be less than zero dollars. If an individual’s Deferral Election, after giving effect to all other applicable
deductions and withholdings (including the tax withholding required pursuant to Section 6.4), would cause the amount of cash compensation payable to such individual to be less than zero dollars, the Committee shall reduce the amount of compensation
deferred pursuant to the individual’s Deferral Election to the extent necessary to ensure that his or her cash compensation for each payroll period is not reduced below zero dollars. 

  
 Section 5. Accounts 
  

	5.1	Accounts. 

  

	 	(a)	A bookkeeping account shall be established in each Participant’s name (an “Account”). The Account of each individual who is a Participant in both the Deferred Bonus
Feature and the Excess 401(k) Contributions Feature of the Plan shall be divided into two subaccounts, one representing the amounts credited to the Participant’s Account pursuant to Section 2 above of the Plan, and the other representing the
amounts credited to the Participant’s Account pursuant to Section 3 above, in each case, as adjusted pursuant to Section 5.2 below and as a result of distributions from the Account. 

  

	 	(b)	The Participants’ Accounts may be further subdivided as the Committee may from time to time determine to be necessary or appropriate, including without limitation to reflect
different sources of credits to the Accounts and different deemed investments thereof. 

  

	 	(c)	Amounts deferred pursuant to a Deferral Election shall be credited to the applicable Account as of the date the Participant would otherwise have received the deferred amounts in the
absence of a Deferral Election. Any amount credited under the Excess 401(k) Contributions Feature of the Plan shall be credited to the applicable Account as of the date the amount would have been allocated under the applicable Profit Sharing Plan if
the Limits had not applied. Adjustments of a Participant’s various subaccounts to reflect investment experience and distributions shall in all cases be done on a pro-rata basis, and such subaccounts shall be treated in the same manner for all
other purposes of the Plan, except as specifically provided in Section 9.2 below. 

  

	5.2	Investment Elections and Earnings Credits. 

  

	 	(a)	Each Participant in the Plan shall be permitted from time to time to make an investment election regarding the manner in which his or her Account shall be deemed invested. Subject
to the following, the Committee shall establish and communicate to Participants the investment choices that will be available to Participants and the procedures for making and changing investment elections, as it may from time to time determine to
be appropriate. Unless otherwise determined by the Committee, a Participant’s investment election may be split among the available choices in increments of 1%, totaling 100%. 

  

	 	(b)	As of January 1, 2005, the available investment choices under the Plan are: 

  

	 	(i)	a rate of return based upon the McDonald’s Common Stock Fund under the Profit Sharing Plan, after adjustment for expenses under the Plan (the “Excess McDonald’s
Common Stock Return”); 

  

	 	(ii)	a rate of return based upon the Stable Value Fund under the Profit Sharing Plan, after adjustment for expenses under the Plan (the “Excess Stable Value Return”); and

  

	 	(iii)	a rate of return based upon the S&P 500 Index Fund under the Profit Sharing Plan, after adjustment for expenses under the Plan (the “Excess S&P 500 Index Return”).

  

	 	(c)	For any period during which a Participant has failed to make an investment election, the Participant’s Account shall be credited with the Excess Stable Value Return. A
Participant’s investment election will continue in effect until the Participant files a new investment election. 

  

	5.3	Vesting. A Participant shall be fully vested at all times in the balance of his or her Account. 

  

 McDonald’s Corporation    57 

 Section 6. Payment of Benefits 
  

	6.1	Time and Method of Payment. The balance in a Participant’s Account shall be paid to the Participant in a single lump sum payment on the first business day that is at
least six months after the Participant’s “separation from service” within the meaning of Section 409A; provided, that to the extent permitted by Section 409A, if the Participant dies before such payment is made, the balance in his or
her Account shall be paid to his or her beneficiary or beneficiaries in a single lump sum payment as soon as administratively feasible after the Participant’s death. 

  

	6.2	Small Balance Rule. Notwithstanding any other provision of the Plan, to the extent permitted by Section 409A, if the balance in a Participant’s Account as of the end of
the month during which the Participant’s employment terminates is less than $50,000, then such Participant’s Account shall be paid in a single lump sum as soon as administratively feasible after the end of such month.

  

	6.3	Form of Payment. All payments shall be made in cash. 

  

	6.4	Withholding of Taxes. The Company shall withhold any applicable Federal, state or local income tax from payments due under the Plan in accordance with such procedures as the
Company may establish. Generally, any Social Security taxes, including the Medicare portion of such taxes, shall be withheld from other compensation payable to the Participant in question, or paid by the Participant in question to the Company, at
the time amounts are credited to the Participant’s Account. The Company shall also withhold any other employment or other taxes as necessary to comply with applicable laws. 

  

	6.5	Beneficiary. 

  

	 	(a)	A Participant shall have the right to name a beneficiary or beneficiaries who shall receive the balance of a Participant’s Account in the event of the Participant’s death
prior to the payment of his or her entire Account (a “Beneficiary Designation”). A beneficiary may be an individual, a trust or an entity that is tax-exempt under Code Section 501(c)(3). If no beneficiary is named by a Participant or if
the Participant survives all of the named beneficiaries, the Participant’s Account shall be paid to the Participant’s estate. A Participant may change or revoke an existing Beneficiary Designation by filing another Beneficiary Designation
with the Committee. The latest Beneficiary Designation received by the Committee shall be controlling. 

  

	 	(b)	Notwithstanding any other provision of the Plan or the McDonald’s Corporation Supplemental Profit Sharing and Savings Plan, a Participant who is also a participant in the
McDonald’s Corporation Supplemental Profit Sharing and Savings Plan must designate the same beneficiary or beneficiaries under both such plans, and accordingly, the latest Beneficiary Designation received by the Committee under either such plan
shall be controlling under both such plans. 

  

	 	(c)	A beneficiary designated by a Participant or another beneficiary who has not yet received payment of the entire benefit payable to him or her under the Plan shall have the right to
name a beneficiary or beneficiaries to receive the balance of such benefit in the event of the beneficiary’s death prior to the payment of the entire amount of such benefit, in accordance with Section 6.5(a) above, as if the beneficiary were a
Participant (regardless of whether the Participant or such other beneficiary is still alive). 

  

	 	(d)	In addition, after the death of a Participant or a beneficiary thereof, any beneficiary designated by the Participant or such deceased beneficiary, as applicable, who has not yet
received payment of the entire benefit payable to him or her under the Plan shall be treated for purposes of Section 5 of the Plan in the same manner as the Participant with respect to the Account or portion thereof of which such person is the
beneficiary. 

  
 Section 7. Miscellaneous 
  

	7.1	Funding. Benefits payable under the Plan to any Participant shall be paid directly by the Company. The Company shall not be required to fund, or otherwise segregate assets to
be used for payment of benefits under the Plan. While the Company may, in the discretion of the Committee, make investments (a) in shares of McDonald’s Common Stock through open market purchases or (b) in other investments in amounts equal or
unequal to amounts payable hereunder, the Company shall not be under any obligation to make such investments and any such investment shall remain an asset of the Company subject to the claims of its general creditors. 

  

	7.2	Account Statements. The Company shall provide Participants with statements of the balances of their Accounts under the Plan at least annually. 

  

	7.3	Employment Rights. Establishment of the Plan shall not be construed to give any employee or Participant the right to be retained in the Company’s service or that of its
subsidiaries and affiliates, or to any benefits not specifically provided by the Plan. 

  

 58    McDonald’s Corporation 

	7.4	Interests Not Transferable. Except as to withholding of any tax under the laws of the United States or any state or locality and the provisions of Section 6.5 above, no
benefit payable at any time under the Plan shall be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment, or other legal process, or encumbrance of any kind. Any attempt to alienate, sell, transfer, assign, pledge or
otherwise encumber any such benefits, whether currently or thereafter payable, shall be void. No person shall, in any manner, be liable for or subject to the debts or liabilities of any person entitled to such benefits. If any person shall attempt
to, or shall alienate, sell, transfer, assign, pledge or otherwise encumber benefits under the Plan, or if by any reason of the Participant’s bankruptcy or other event happening at any time, such benefits would devolve upon any other person or
would not be enjoyed by the person entitled thereto under the Plan, then the Company, in its discretion, may terminate the interest in any such benefits of the person entitled thereto under the Plan and hold or apply them to or for the benefit of
such person entitled thereto under the Plan or such individual’s spouse, children or other dependents, or any of them, in such manner as the Company may deem proper. 

  

	7.5	Forfeitures and Unclaimed Amounts. Unclaimed amounts shall consist of the amount of the Account of a Participant that cannot be distributed because of the Committee’s
inability, after a reasonable search, to locate a Participant or the Participant’s beneficiary, as applicable, within a period of two years after the Payment Date upon which the payment of benefits become due. Unclaimed amounts shall be
forfeited at the end of such two-year period. These forfeitures will reduce the obligations of the Company under the Plan. After an unclaimed amount has been forfeited, the Participant or beneficiary, as applicable, shall have no further right to
the Participant’s Account. 

  

	7.6	Controlling Law. The law of Illinois, except its law with respect to choice of law, shall be controlling in all matters relating to the Plan to the extent not preempted by
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). 

  

	7.7	Action by the Company. Except as otherwise specifically provided in the Plan, any action required of or permitted by the Company under the Plan shall be by resolution of the
Board of Directors of the Company or by action of any member of the Committee or person(s) authorized by resolution of the Board of Directors of the Company. 

  

	7.8	Section 16. Notwithstanding any other provision of the Plan, the Compensation Committee may impose such restrictions, rules and regulations on the terms and conditions of
participation in the Plan by any Participant who has been deemed by the Board of Directors of the Company to be subject to Section 16 of the Securities Exchange Act of 1934, as amended, as the Compensation Committee may determine to be necessary or
appropriate. Any transaction that would result in liability or potential liability under said Section 16 shall be void ab initio. 

  
 Section 8. Subsidiary Participation 
  

	8.1	Adoption of Plan. Any entity in which the Company directly or through intervening subsidiaries owns 25% or more of the total combined voting power or value of all classes of
stock, or, in the case of an unincorporated entity, a 25% or more interest in the capital and profits (a “Subsidiary”) may, with the approval of the Compensation Committee and under such terms and conditions as the Compensation Committee
may prescribe, adopt the corresponding portions of the Plan by resolution of its board of directors and thereby become an “Adopting Subsidiary” The Compensation Committee may amend the Plan as necessary or desirable to reflect the adoption
of the Plan by an Adopting Subsidiary, provided, however, that an Adopting Subsidiary shall not have the authority to amend or terminate the Plan under Section 9 below. Exhibit B identifies the Adopting Subsidiaries as of January 1, 2005. The
Committee may amend Exhibit B from time to time to reflect changes in the Adopting Subsidiaries. 

  

	8.2	Withdrawal from the Plan by Subsidiary. Any Adopting Subsidiary shall have the right, at any time, upon the approval of and under such conditions as may be provided by the
Compensation Committee, to withdraw from the Plan by delivering to the Compensation Committee written notice of its election so to withdraw, upon which it shall be considered a “Withdrawing Subsidiary.” Upon receipt of such notice, the
Adopting Subsidiary shall assume full responsibility for funding the payment of the portion of the Accounts of Participants and beneficiaries attributable to credits made while the Participants were employees of such Withdrawing Subsidiary, plus any
net earnings, gains and losses on such credits, and the Company shall have no further obligations to such Participants or any of their beneficiaries under the Plan with respect to the portion of the Accounts attributable to credits made while the
Participants were employees of such Withdrawing Subsidiary. 

  

	8.3	Special Rule for Sales or Other Dispositions of Subsidiaries. Notwithstanding any other provision of the Plan, to the extent permitted by Section 409A: (a) if an Adopting
Subsidiary ceases to be a Subsidiary (thereby becoming a “Disaffiliated Subsidiary”) as a result of a sale, spinoff, public offering or other transaction involving the Disaffiliated Subsidiary, or if one or more businesses conducted by an
Adopting Subsidiary are sold to another entity (a “Buyer”), any Participant who as a result of such transaction ceases to be employed by the Company or one of its remaining Subsidiaries shall be considered to have experienced a termination
of employment for purposes of the Plan, unless 

  

 McDonald’s Corporation    59 

 clause (b) applies; and (b) if in connection with such a transaction, a Participant remains an employee
of the Disaffiliated Subsidiary or becomes an employee of the Buyer or one of its subsidiaries or affiliates, as applicable, and the Disaffiliated Subsidiary or the Buyer, as applicable, assumes all liabilities to the Participant under this Plan,
then the Participant shall not be considered to have experienced a termination of employment for purposes of the Plan, but the Company and its remaining Subsidiaries and affiliates shall have no further obligations to the Participant or any of his
or her beneficiaries under the Plan. 
  
 Section 9. Amendment and Termination;
ERISA Issues 
  

	9.1	Amendment and Termination. The Company reserves the right at any time by action of its Board of Directors of the Company or the Compensation Committee to modify, amend or
terminate the Plan; provided, however, that no such amendment or termination of the Plan shall result in a reduction or elimination of a Participant’s Account except to the extent required to comply with Section 409A; and provided,
further, that no such amendment or termination shall result in any acceleration of the payment of any Account except to the extent permitted by Section 409A. The Compensation Committee shall provide notice of amendments adopted by the
Compensation Committee to the Board of Directors of the Company on a timely basis. 

  
 Notwithstanding the foregoing, the Company’s Corporate Executive Vice President–Human Resources and its Corporate Executive Vice President,
General Counsel and Secretary may amend or modify the terms of the Plan and may amend, modify or terminate any Deferral Election made hereunder to the extent necessary or advisable to comply with the requirements of Section 409A. 
  

	9.2	ERISA Issues. It is the intention of the Company that the Plan be a nonqualified deferred compensation plan described in Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA
covering a select group of management or highly compensated employees of the Company or an Adopting Subsidiary (a “Top Hat Plan”). Without limiting the generality of the foregoing provisions of this Section 9, to the extent permitted by
Section 409A, the Company reserves the right to terminate one or more Participants’ participation in the Plan and to distribute such Participants’ Account balances to the Participants (or their beneficiaries), if it is determined by the
U.S. Department of Labor or any court of competent jurisdiction, or by the Company with the advice of legal counsel, that the Plan does not qualify as a Top Hat Plan. 

  
 Section 10. Committee Actions and Electronic Elections 
  

	10.1	Actions of Committees. Any actions by the Committee or the Compensation Committee shall be taken upon the approval of a majority of the members thereof at any in-person or
telephonic meeting or in writing. 

  

	10.2	Electronic Elections. Anything in the Plan to the contrary notwithstanding, the Committee may in its discretion make disclosure or give information to Participants and
beneficiaries and permit Participants or their beneficiaries to make electronic elections in lieu of written disclosure, information or elections provided in the Plan. In making such a determination, the Committee shall consider the availability of
electronic disclosure of information and elections to Participants and beneficiaries, the protection of the rights of Participants and their beneficiaries, the appropriateness of the standards for authentication of identity and other security
considerations involved in the electronic election system and any guidance issued by any relevant governmental authorities. 

  
 Section 11. Special Provisions for Rehired Employees 
  

	11.1	Deferral Elections of Rehired Participants. If a Participant’s employment is terminated while he or she has a Deferral Election (including an election not to defer any
compensation under the Plan) in effect and the Participant is rehired in a position making him or her an Excess 401(k) Contributions Eligible Employee and/or a Deferred Bonus Eligible Employee, then (a) if the Participant resumes employment with the
Company or an Adopting Subsidiary during the calendar year of such termination or in the next following calendar year, such Deferral Election shall remain in effect with respect to compensation of the Participant from and after the date of rehire,
to the extent it is applicable thereto by its terms, and (b) in all other cases, such Deferral Election until shall have no application and such Participant will not be eligible to defer any compensation under the Plan in the year the Participant
resumes employment with the Company or an Adopting Subsidiary. Such reemployed Participant shall be eligible to file a new Deferral Election for any subsequent year in accordance with the terms of the Plan then in effect. 

 

	11.2	Payments to Rehired Participants. If a Participant whose employment has terminated is thereafter rehired prior to the distribution of his or her entire Account balance, then
any remaining payments hereunder required to be made to such Participant as a result of the Participant’s prior termination of employment shall be suspended until such Participant again becomes eligible to receive a distribution of his Account
hereunder as a result of his subsequent death, termination of employment or other event that results in the distribution hereunder. 

  

 60    McDonald’s Corporation 

 Section 12. Claims Procedures 
  

	12.1	Filing a Claim. A Participant or beneficiary of a Participant who believes that he or she is eligible for a benefit under this Plan that has not been provided may submit a
written claim for benefits to the Committee. The Committee shall evaluate each properly filed claim and notify the claimant of the approval or denial of the claim within 90 days after the Committee receives the claim, unless special circumstances
require an extension of time for processing the claim. If an extension of time for processing the claim is required, the Committee shall provide the claimant with written notice of the extension before the expiration of the initial 90-day period,
specifying the circumstances requiring an extension and the date by which a final decision will be reached (which date shall not be later than 180 days after the date on which the Committee received the claim). If a claim is denied in whole or in
part, the Committee shall provide the claimant with a written notice setting forth (a) the specific reasons for the denial, (b) references to pertinent Plan provisions upon which the denial is based, (c) a description of any additional material or
information needed and an explanation of why such material or information is necessary, and (d) the claimant’s right to seek review of the denial pursuant to Section 12.2 below. 

  

	12.2	Review of Claim Denial. If a claim is denied, in whole or in part, the claimant shall have the right to (a) request that the Committee review the denial, (b) review pertinent
documents, and (c) submit issues and comments in writing, provided that the claimant files a written request for review with the Committee within 60 days after the date on which the claimant received written notice from the Committee of the denial.
Within 60 days after the Committee receives a properly filed request for review, the Committee shall conduct such review and advise the claimant in writing of its decision on review, unless special circumstances require an extension of time for
conducting the review. If an extension of time for conducting the review is required, the Committee shall provide the claimant with written notice of the extension before the expiration of the initial 60-day period, specifying the circumstances
requiring an extension and the date by which such review shall be completed (which date shall not be later than 120 days after the date on which the Committee received the request for review). The Committee shall inform the claimant of its decision
on review in a written notice, setting forth the specific reason(s) for the decision and reference to Plan provisions upon which the decision is based. A decision on review shall be final and binding on all persons for all purposes.

  
 Executed in multiple originals this 1st day of
December 2004. 
  

			
	McDonald’s Corporation
	
	 /S/ Richard Floersch

	 By
	 	Richard Floersch
	 Executive Vice President–
 Human Resources

  

 McDonald’s Corporation    61 

 Exhibit A. Index of Defined Terms 
  

			
	 Defined Term

	  	Section

	 Account
	  	5.1(a)
	 Adopting Subsidiary
	  	8.1
	 Annual Bonus Plan
	  	2.2(a)
		
	 Beneficiary Designation
	  	6.5(a)
	 Bonus Deferral Election
	  	2.2(a)
	 Buyer
	  	8.3
		
	 Code
	  	1.1
	 Company
	  	1.1
	 Committee
	  	1.3
	 Compensation Committee
	  	1.3
	 Compensation Determination Date
	  	3.1(c)
		
	 Deferral Elections
	  	4.1
	 Deferred Bonus Eligible Employee
	  	2.1
	 Deferred Bonus Feature
	  	1.2(a)
	 Disaffiliated Subsidiary
	  	8.3
		
	 Election Due Date
	  	4.1
	 ERISA
	  	7.6
	 Excess 401(k) Contributions Deferral Election
	  	3.3
	 Excess 401(k) Contributions Deferral Eligible Employee
	  	3.1
	 Excess 401(k) Contributions Feature
	  	1.2(a)
	 Excess McDonald’s Common Stock Return
	  	5.2(b)(i)
	 Excess S&P 500 Index Return
	  	5.2(b)(iii)
	 Excess Stable Value Return
	  	5.2(b)(ii)
		
	 Limits
	  	3.2(b)
		
	 Participants
	  	1.2(b)
	 Plan
	  	1.1
	 Profit Sharing Plan
	  	1.2(a)
		
	 Section 409A
	  	1.4
	 Specified Year
	  	3.1
	 Subsidiary
	  	8.1
		
	 Top Hat Plan
	  	9.2
		
	 Withdrawing Subsidiary
	  	8.2

  

 62    McDonald’s Corporation 

 Exhibit B. Adopting Subsidiaries 
  
 McDonald’s USA, LLC 
  
 McDonald’s Ventures, LLC 
  
 McDonald’s Latin America, LLC 
  
 McDonald’s AMEA, LLC 
  
 McDonald’s International, LLC 
  
 McDonald’s Europe, Inc. 
  
 Boston Market Corporation 
  
 Chipotle Mexican Grill, Inc. 
  

 McDonald’s Corporation    63

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