Document:

Exhibit 10.3

 

SHARE PURCHASE AGREEMENT

 

This SHARE PURCHASE
AGREEMENT is made and entered into as of August 26, 2015 (this “Agreement”), by and among Dr. Ryuji Ueno, an
individual (“Seller 1”), Dr. Sachiko Kuno, an individual (“Seller 2”), S&R Technology
Holdings, LLC, a Delaware limited liability company (“Seller 3”, and together with Seller 1 and Seller 2, collectively,
the “Sellers”, and each of them, a “Seller”), and Sucampo Pharmaceuticals, Inc., a Delaware
corporation (“Acquiror”, and together with the Sellers, collectively, the “Parties”, and
each of them, a “Party”). Certain other capitalized terms used in this Agreement are defined in Exhibit A
hereto.

 

RECITALS

 

WHEREAS, Seller 1,
Seller 2, and Seller 3 own Three Million Two Hundred Thousand (3,200,000), Two Million (2,000,000), and Three Million Three Hundred
Seventy-One Thousand Nine Hundred (3,371,900) shares, respectively, of the common stock (the “Common Stock”)
of R-Tech Ueno, a corporation organized under Japanese law (the “Company”, and such shares of the Common Stock
of the Company owned by the Sellers, collectively, the “Seller Shares”);

 

WHEREAS, Acquiror
and the Company have entered into negotiations with respect to the initiation by a subsidiary of Acquiror (“Tender Sub”)
of a tender offer bid (such tender offer bid, including any amendments or extensions thereto the “Tender Offer”)
to acquire for cash (i) all of the issued and outstanding shares of Common Stock of the Company (excluding the Seller Shares) at
a price of 1,900 JPY per share (the “Share Offer Price”) and (ii) all of the outstanding options to purchase
capital stock of the Company at a price per option (designated in JPY) corresponding to the difference between the exercise price
of such option and the Share Offer Price;

 

WHEREAS, Jefferies
Finance LLC (“Jefferies”) has entered into a financing commitment letter, dated as of the date hereof, between
Acquiror and Jefferies (the “Financing Commitment”), pursuant to which Jefferies has committed to provide debt
financing, in the aggregate amount and on the terms and conditions set forth in the Financing Commitment, for, amongst other things,
the consummation of (i) the purchase of the Seller Shares and (ii) the Tender Offer (the provision of such debt financing, the
“Financing”); and

 

WHEREAS, in order
to induce Acquiror to proceed with the Tender Offer, the Parties desire to enter into this Agreement, pursuant to which the Sellers
will sell the Seller Shares to Acquiror, upon the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby,
the Parties hereby agree as follows:

 

ARTICLE I

PURCHASE OF SELLER SHARES

 

Section 1.01       
Sale of Seller Shares(a). Upon the terms and conditions hereinafter set forth, the Sellers hereby agree to sell, assign, transfer and deliver to
the Acquiror at the Closing, and the Acquiror hereby agrees to purchase and accept from the Sellers at the Closing, the Seller
Shares. The Seller Shares shall be conveyed free and clear of all Liens.

 

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Section 1.02   
Consideration for Seller Shares. At the Closing, in reliance upon the representations, warranties and covenants set
forth herein and in consideration of the Sellers’ sale, assignment, transfer and delivery of the Seller Shares to the Acquiror,
the Acquiror shall pay to each Seller, by wire transfer of immediately available United States dollars to an account designated
by the applicable Seller prior to the Closing, an amount of cash equal to the product of (x) the number of Seller Shares held by
such Seller, multiplied by (y) the Per Share Purchase Price (such payments, collectively, the “Closing Payments”).
The amount of the Closing Payments shall be calculated in JPY and converted to United States dollars using the exchange rate quoted
on www.oanda.com as of the close of trading on the New York Stock Exchange on the date that the Tender Offer is announced to the
public (the “Announcement Date”).

 

Section 1.03   
Seller Acknowledgement Regarding Price. Each Seller acknowledges and agrees that (i) it has knowledge and experience
in financial and business matters sufficient to enable it to evaluate the merits and risks of the transactions contemplated by
this Agreement and the Tender Offer, (ii) it has had access to all information that it deems necessary or appropriate to determine
the value of the Seller Shares that such Seller is selling to Acquiror pursuant to this Agreement, (iii) the Share Offer Price
may be greater than the Per Share Purchase Price, (iv) notwithstanding the amount of the Share Offer Price, in consideration of
the sale of its Seller Shares, such Seller shall be entitled to the Closing Payment calculated pursuant to Section 1.02, and (v)
it has consulted its own financial and legal advisors in connection with the transactions contemplated by this Agreement and it
has entered into this Agreement voluntarily.

 

Section 1.04   
Withholding. Acquiror shall be entitled to deduct and withhold from any consideration payable or otherwise deliverable
to any Seller pursuant to this Agreement such amounts as Acquiror may be required to deduct or withhold therefrom under applicable
Law. To the extent such amounts are so deducted or withheld and paid over to the applicable Governmental Authority or other applicable
Person, such amounts will be treated for all purposes under this Agreement as having been paid to the Seller to whom such amounts
would otherwise have been paid.

 

Section 1.05   
Transfer Taxes. All transfer, documentary, stamp, registration and all other Taxes, fees and duties, if any, incurred
in connection with the sale and transfer of the Seller Shares shall be borne and paid by the Sellers.

 

ARTICLE II

CLOSING

 

Section 2.01   
Closing. Subject to the satisfaction or waiver of all of the conditions set forth in Section 2.02 of this Agreement
(other than those conditions which, by their terms, are intended to be satisfied at the Closing, but subject to the satisfaction
or waiver of those conditions), the consummation of the sale and purchase of the Seller Shares (the “Closing”)
shall take place at the offices of Cooley LLP 4401 Eastgate Mall, San Diego, California 92121-1909 at 10:00 a.m. local time in
Tokyo, Japan on (i) the date of the settlement of the Tender Offer, or (ii) on such other date following the settlement of the
Tender Offer and/or at such other time and place as the Sellers, on the one hand, and Acquiror, on the other hand, shall mutually
agree. The date on which the Closing actually takes place is referred to in this Agreement as the “Closing Date.”

 

 

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Section 2.02   
Conditions to Closing.

 

(a)          
Acquiror’s Closing Conditions. The obligations of Acquiror to effect the sale and purchase of the Seller Shares
and otherwise consummate the transactions contemplated by this Agreement are subject to the satisfaction or waiver, at or prior
to the Closing, of each of the following conditions:

 

(i)           
Accuracy of Representations. Each of the representations and warranties made by the Sellers in this Agreement (excluding
Section (i) of Schedule 3.01) shall be true and correct in all material respects at the Closing Date, except where a failure to
satisfy such condition would not prevent the consummation of the sale and purchase of the Seller Shares.

 

(ii)         
Performance of Covenants. The covenants and obligations that the Sellers are required to comply with or to perform
pursuant to Section 4.01(a)(i)(a) shall have been complied with and performed in all material respects.

 

(iii)       
No Injunctions or Restraints. No temporary restraining order, preliminary or permanent injunction or other material
legal restraint or prohibition issued or promulgated by a Governmental Authority preventing the consummation of the sale and purchase
of the Seller Shares or the consummation of the other transactions contemplated by this Agreement shall be in effect, and there
shall not be any Law enacted or deemed applicable to the sale and purchase of the Seller Shares or the consummation of the other
transactions contemplated by this Agreement that makes the consummation thereof illegal.

 

(iv)       
Consents and Notices. All filings or notices to, and all Consents of, any Governmental Body or other Person required
to be delivered or obtained (whether pursuant to applicable Law, Contract (including each Covenant, dated as of April 14, 2015,
executed by each of the Sellers in favor of Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (each, a “Lock-Up Agreement”),
or otherwise) prior to the consummation of the sale and purchase of the Seller Shares shall have been delivered or obtained (and
copies thereof provided to Acquiror) and shall be in full force and effect, except where a failure to satisfy such condition would
not prevent the consummation of the sale and purchase of the Seller Shares.

 

(v)         
Majority Share Acquisition. Tender Sub shall have completed the Majority Share Acquisition.

 

(vi)       
No Liens. The Seller Shares shall not be subject to any Liens or other encumbrances that would prevent Acquiror from
obtaining good and clean title to the Seller Shares at the Closing.

 

(vii)     
Financing. Acquiror shall have obtained the Financing, or such other financing as required to close the Tender Offer
and this Agreement.

 

(b)          
Sellers’ Closing Conditions. The obligations of the Sellers to effect the sale and purchase of the Seller Shares
and otherwise consummate the transactions contemplated by this Agreement are subject to the satisfaction or waiver, at or prior
to the Closing, of the following conditions:

 

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(i)           
Accuracy of Representations. Each of the representations and warranties made by the Acquiror in this Agreement shall
be true and correct in all material respects at the Closing Date, except where a failure to satisfy such condition would not prevent
the consummation of the sale and purchase of the Seller Shares.

 

(ii)         
Performance of Covenants. All of the covenants and obligations that the Acquiror is required to comply with or to
perform at or prior to the Closing Date shall have been complied with and performed in all material respects, except where a failure
to satisfy such condition would not prevent the consummation of the sale and purchase of the Seller Shares.

 

(iii)       
No Injunctions or Restraints. No temporary restraining order, preliminary or permanent injunction or other material
legal restraint or prohibition issued or promulgated by a Governmental Authority preventing the consummation of the sale and purchase
of the Seller Shares or the consummation of the other transactions contemplated by this Agreement shall be in effect, and there
shall not be any Law enacted or deemed applicable to the sale and purchase of the Seller Shares or the consummation of the other
transactions contemplated by this Agreement that makes the consummation thereof illegal.

 

(iv)       
Majority Share Acquisition. Tender Sub shall have completed the Majority Share Acquisition.

 

Section
2.03       Closing Deliveries.

 

(a)          
Sellers. At the Closing, the Sellers shall deliver, or cause to be delivered, to the Acquiror, the following:

 

(i)            
evidence reasonably satisfactory to Acquiror reflecting the application by Sellers for the book-entry transfer of the Seller
Shares from the securities accounts of the Sellers to the securities account of Acquiror; and

 

(ii)          
such other documents and instruments as may be reasonably required by the Acquiror to consummate the transactions contemplated
hereby.

 

(b)          
Acquiror. At the Closing, the Acquiror shall deliver, or cause to be delivered to the Sellers, the Closing Payments
in immediately available funds pursuant to wire transfer instructions provided by the Sellers to the Acquiror not less than three
(3) days prior to the Closing.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Section 3.01      
Representations and Warranties of the Sellers. Each Seller hereby represents and warrants to Acquiror that the statements
set forth in Schedule 3.01 are true and correct as of the date of this Agreement and will be true and correct as of the Closing
Date (or, if made as of a specified date, as of such specified date only).

 

Section 3.02      
Representations and Warranties of Acquiror. Acquiror hereby represents and warrants to the Sellers that the statements
set forth in Schedule 3.02 are true and correct as of the date of this Agreement and will be true and correct as of the Closing
Date (or, if made as of a specified date, as of such specified date only).

 

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ARTICLE IV

COVENANTS OF THE PARTIES

 

Section 4.01      
The Sellers’ Obligations Prior to Closing.

 

(a)          
Certain Covenants. During the period between the date hereof and the Closing or the earlier termination of this Agreement
in accordance with its terms, except as contemplated by this Agreement, required by applicable Law or otherwise agreed to in writing
by Acquiror:

 

(i)           
none of the Sellers shall (a) sell, assign, transfer, or otherwise dispose of (including by tender into the Tender Offer),
or pledge, hypothecate or suffer any Lien to be imposed upon, any of the Seller Shares, or (b) acquire any additional shares of
the capital stock of the Company or any option, call, warrant or right (whether or not immediately exercisable) to acquire any
capital stock or other equity security of the Company, or any security, instrument or obligation that is or may become convertible
into or exchangeable for any capital stock or other equity security of the Company;

 

(ii)         
the Sellers and their respective Affiliates shall not, nor shall any of them authorize or permit any of their Representatives
acting on their behalf to, directly or indirectly: (a) initiate, solicit or encourage any inquiry, proposal or offer from any Person
(other than Acquiror) relating to a possible Acquisition Transaction; (b) participate in any discussions or negotiations or enter
into any agreement with, or provide any non-public information to, any Person (other than Acquiror) relating to or in connection
with a possible Acquisition Transaction; or (c) consider, entertain, approve, accept or ratify any proposal or offer from any Person
(other than Acquiror) relating to a possible Acquisition Transaction, and the Sellers shall promptly notify the Acquiror in writing
of any material inquiry, proposal or offer relating to a possible Acquisition Transaction that is received by any Seller or any
of their respective Affiliates, or any of their Representatives;

 

(iii)       
none of the Sellers or their respective Affiliates shall take any action, or fail to take any action required or contemplated
under the terms of this Agreement or reasonably necessary or appropriate and requested by Acquiror in furtherance of the sale and
purchase of the Seller Shares as contemplated hereunder, with the intent of, or that would reasonably be expected to, frustrate,
hinder, delay, impede, or make unlikely or impossible the fulfillment of the conditions to the Parties’ obligations to consummate
the Closing, the Tender Offer, the Majority Share Acquisition, or any other transaction contemplated by this Agreement; and

 

(iv)       
none of the Sellers shall authorize any of, or agree or commit to take, any of the actions described in the preceding clauses
(i) through (iii) of this Section 4.01(a).

 

(b)          
Support and Cooperation. Each Seller agrees to take all reasonable actions available to them and requested by Acquiror
to support the Tender Offer (including, to the extent applicable and if requested by Acquiror, by voting the Seller Shares in favor
of transactions in furtherance thereof. If requested by Acquiror, the Sellers agree to place the Seller Shares into escrow with
a third party specified by Acquiror during any period of time that the holders of Common Stock or stock options of the Company
are entitled to tender their shares or options into the Tender Offer.

 

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(c)          
Termination of Related Party Agreements. Prior to the Closing, the Sellers shall takes such steps as are necessary
to terminate, subject to the agreement of the Company, effective as of the Closing Date, those Related Party Agreements (if any)
identified by Acquiror in writing to the Sellers prior to the Closing and provide Acquiror with evidence thereof reasonably satisfactory
to Acquiror.

 

Section 4.02      
Efforts to Consummate. Each of the Parties hereto shall use its reasonable best efforts to take, or cause to be taken,
all lawful and reasonable actions within such Party’s control and to do, or cause to be done, all lawful and reasonable things
within such Party’s control necessary to fulfill the conditions precedent to the obligations of the other Party(ies) hereunder
and to consummate and make effective as promptly as practicable the transactions contemplated by this Agreement and to cooperate
with each other in connection with the foregoing. Except as otherwise set forth in this Agreement, each Party to this Agreement:
(a) shall make all filings and other submissions (if any) and give all notices (if any) required to be made and given (whether
pursuant applicable Law, Contract, or otherwise) by such Party in connection with the sale of the Seller Shares and the other transactions
contemplated by this Agreement; (b) shall use reasonable best efforts to obtain each Consent (if any) required to be obtained (whether
pursuant to applicable Law, Contract, or otherwise) by such Party in connection with the sale of the Seller Shares or any of the
other transactions contemplated by this Agreement, provided that Sellers shall not be required to make any payments (not otherwise
legally or contractually owed) (other than customary administrative, processing or similar fees) to third parties to obtain any
required Consent; and (c) shall use reasonable best efforts to lift any injunction prohibiting, or any other legal bar to, the
sale of the Seller Shares or any of the other transactions contemplated by this Agreement. Nothing in this Agreement shall be construed
as an attempt or an agreement by the Parties to assign or cause the assignment of (or transfer control of) any Contract or permit
which by Law is non-assignable without the Consent of any other Person, unless such Consent shall have been given.

 

Section 4.03      
Notifications. Each Party shall give prompt notice to the other Parties (and subsequently keep the other Parties
informed on a current basis) upon its becoming aware of (a) any Actions commenced or, to such Party’s knowledge, threatened
against, relating to or involving or otherwise affecting such Party or any of its Affiliates which relate to the Tender Offer,
the Majority Share Acquisition or any other transactions contemplated by this Agreement, or (b) the occurrence or existence of
any fact, event or circumstance that would or would be reasonably likely to (i) cause or constitute a material breach of any of
its representations, warranties, covenants or agreements contained herein, or (ii) impair or delay the completion of the Tender
Offer, the Majority Share Acquisition or the Closing; provided, however, the delivery of any notice pursuant to this
Section 4.03 shall not (x) cure any breach of, or non-compliance with, any other provision of this Agreement or (y) limit the remedies
available to any Party receiving such notice.

 

Section 4.04      
Confidentiality.

 

(a)          
For [...***...] ([...***...])
years from and after date of this Agreement, Sellers will hold and treat in confidence, and will not use, and will cause their
Affiliates to hold and treat in confidence, all non-public documents and information (including any information with regard to
terms and conditions of this Agreement) concerning the Company, Acquiror and each of their respective Affiliates (collectively,
“Acquiror Confidential Information”); provided, however, that Acquiror Confidential Information shall
not include documents or information that (1) are required or requested (with prompt notice of such request to be made to Acquiror)
to be disclosed by applicable Law or any Governmental Authority, (2) generally become available to the public through no fault
of any Seller, (3) become available to Sellers on a non-confidential basis, or (4) are independently developed by Sellers or their
respective Affiliates without reference to any Acquiror Confidential Information. Notwithstanding the foregoing, Sellers may disclose
Acquiror Confidential Information to the respective directors, officers, agents, consultants and other representatives (including
attorneys, financial advisor and accountants) of Sellers or their Affiliates to the extent reasonably necessary for execution or
performance of this Agreement or the enforcement of their rights hereunder.

 

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(b)          
For [...***...] ([...***...])
years from and after the date of this Agreement, Acquiror will hold and treat in confidence, and will not use, and will cause its
Affiliates to hold and treat in confidence, all non-public documents and information concerning Sellers and their respective Affiliates
(“Seller Confidential Information”); provided, however, that Seller Confidential Information shall not include
documents or information that (1) are required or requested (with prompt notice of such request to be made to Sellers) to be disclosed
by applicable Law or any Governmental Authority, (2) generally become available to the public through no fault of Acquiror or its
Affiliates, (3) become available to Acquiror or its Affiliates on a non-confidential basis, or (4) are independently developed
by Acquiror or its Affiliates without reference to any Seller Confidential Information. Notwithstanding the foregoing, Acquiror
may disclose Seller Confidential Information to the directors, officers, agents, consultants and other representatives (including
attorneys, financial advisors, accountants, potential financing sources) of Acquiror or its Affiliates to the extent reasonably
necessary for execution or performance of this Agreement or the Tender Offer or the enforcement of its rights hereunder.

 

Section 4.05          
No Lender Liability. Notwithstanding anything herein to the contrary, the Sellers hereby waive any rights or claims
against Jefferies, each lead arranger and each other agent or co-agent (if any) with respect to the Financing, the Lenders, or
any affiliate thereof and all of their respective affiliates and each director, officer, employee, representative and agent thereof
(each, a “Financing Party”) in connection with this Agreement, the Financing or the Financing Commitment, whether
at law or equity, in contract, in tort or otherwise, and the Sellers agree not to commence (and if commenced agree to dismiss or
otherwise terminate) any Action against any Financing Party in connection with this Agreement or the transactions contemplated
hereby (including any action relating to the Financing or the Financing Commitment). In furtherance and not in limitation of the
foregoing waiver, it is agreed that no Lender shall have any liability for any claims, losses, settlements, damages, costs, expenses,
fines or penalties to the Sellers in connection with this Agreement or the transactions contemplated hereby (including the Financing
or the Financing Commitment).

 

ARTICLE V

INDEMNIFICATION

 

Section 5.01      
Indemnification by Sellers. Sellers shall jointly and severally indemnify Acquiror from and against all Losses
incurred by Acquiror to the extent arising out of or resulting from (i) any inaccuracy or breach of a representation or warranty
made by the Sellers under Section 3.01, (ii) any breach or failure by the Sellers to perform any of their covenants or obligations
contained in this Agreement, or (iii) any Taxes imposed on the Sellers that are required by applicable Law to be withheld from
the Per Share Purchase Price in connection with the sale of the Seller Shares as contemplated hereunder, including as a result
of the pricing of the Common Stock in the Tender Offer. Notwithstanding the foregoing, the Sellers’ obligations under clauses
(i) and (ii) of the preceding sentence shall not exceed, in the aggregate, the Closing Payments received by Sellers.

 

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Section 5.02      
Indemnification by Acquiror. Acquiror shall indemnify the Sellers from and against all Losses incurred by the Sellers
to the extent arising out of or resulting from (i) any inaccuracy or breach of a representation or warranty made by Acquiror under
Section 3.02 or (ii) any breach or failure by Acquiror to perform any of its covenants or obligations contained in this Agreement.

 

Section 5.03      
Survival; Indemnification Procedure(a)          
. The Parties’ representations, warranties, covenants, and agreements contained in this Agreement shall survive the
Closing. Whenever any claim shall arise for indemnification under this ARTICLE V, the indemnified Person making such claim shall
notify the Party from whom indemnification is sought (the “Indemnifying Party”) in writing of the claim and,
when known, the facts constituting the basis for such claim; provided, however, that the failure timely to provide
such notice shall not release the Indemnifying Party from its obligations under this ARTICLE V.

 

ARTICLE VI

TERMINATION

 

Section 6.01      
Termination. This Agreement may be terminated by the Sellers, acting together, on the one hand, or the Acquiror,
on the other hand, by written notice to the applicable Party or Parties if (i) the Tender Offer has not closed on or before the
date that is ninety (90) Business Days following the date of this Agreement, or (ii) the Tender Offer is withdrawn.

 

Section 6.02      
Notice of Termination. Any Party desiring to terminate this Agreement pursuant to Section 6.01 shall give written
notice of such termination to the other Parties to this Agreement.

 

Section 6.03      
Effect of Termination. In the event of the termination of this Agreement as provided in Section 6.01, this Agreement
shall forthwith become void and there shall be no liability on the part of any Party to this Agreement or any Financing Party except
as set forth in ARTICLE V with respect to Losses suffered by any Party prior to the termination of this Agreement. This Section
6.03, Sections 4.04 (Confidentiality) and 4.05 (No Lender Liability), and ARTICLE V and ARTICLE VII (and the corresponding definitions
in Exhibit A) shall survive any termination of this Agreement.

 

ARTICLE VII

MISCELLANEOUS

 

Section 7.01      
Governing Law; Jurisdiction.

 

(a)          
The Parties hereto acknowledge and irrevocably agree (i) that any dispute, action, or proceeding, whether in law or in equity,
whether in contract or in tort or otherwise, arising out of, or relating to, the transactions contemplated hereby shall be subject
to the exclusive jurisdiction of any state or federal court sitting in the County of New Castle, Delaware and any appellate court
thereof and each party hereto submits for itself and its property with respect to any such dispute, action or proceeding to the
exclusive jurisdiction of such court, (ii) not to bring or permit any of their Affiliates to bring or support anyone else in bringing
any such dispute, action or proceeding in any other court, (iii) to waive and hereby waive, to the fullest extent permitted by
law, any objection which any of them may now or hereafter have to the laying of venue of, and the defense of an inconvenient forum
to the maintenance of, any such dispute, action or proceeding in any such court, (iv) to waive and hereby waive any right to trial
by jury in respect of any such dispute, action or proceeding, (v) that a final judgment in any such action shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law and (vi) that any such
dispute, action or proceeding shall be governed by, and construed in accordance with, the laws of the State of Delaware, without
regard to the conflicts of law rules of such State that would result in the application of the laws of any other jurisdiction.

 

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(b)          
Notwithstanding anything herein to the contrary, the Parties hereto acknowledge and irrevocably agree (1) that any dispute,
action, or proceeding, whether in law or in equity, whether in contract or in tort or otherwise, involving the Lenders arising
out of, or relating to, the transactions contemplated hereby, the Financing or the performance of services thereunder or related
thereto shall be subject to the exclusive jurisdiction of any state or federal court sitting in the County of New York, Borough
of Manhattan, New York, New York and any appellate court thereof and each party hereto submits for itself and its property with
respect to any such dispute, action or proceeding to the exclusive jurisdiction of such court, (ii) not to bring or permit any
of their Affiliates to bring or support anyone else in bringing any such dispute, action or proceeding in any other court, (iii)
to waive and hereby waive, to the fullest extent permitted by law, any objection which any of them may now or hereafter have to
the laying of venue of, and the defense of an inconvenient forum to the maintenance of, any such dispute, action or proceeding
in any such court, (iv) to waive and hereby waive any right to trial by jury in respect of any such dispute, action or proceeding,
(v) that a final judgment in any such action shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law and (vi) that any such dispute, action or proceeding shall be governed by, and construed
in accordance with, the laws of the State of New York, without regard to the conflicts of law rules of such State that would result
in the application of the laws of any other jurisdiction.

 

Section 7.02          
Cost and Expenses. Except as otherwise provided in this Agreement, each Party shall bear the costs, expenses and
fees (including fees and expenses of the attorneys, certified public accountants, tax advisors and other advisors) incurred by
such Party in relation to the preparation, execution and performance of this Agreement.

 

Section 7.03      
Assignment. No Party shall assign or transfer or purport to assign or transfer (whether by operation of Law or otherwise)
any of its rights, interests or obligations hereunder without the prior written consent of the other Parties; provided, that Acquiror
may assign this Agreement and its rights and interests herein without any such consent to any of its Affiliates or as collateral
to any Person providing financing to Acquiror. Subject to the preceding sentence, this Agreement shall be binding upon and shall
inure to the benefit of the Parties and their respective successors and assigns.

 

Section 7.04      
Amendments and Waivers. No amendment, modification or discharge of this Agreement, and no waiver hereunder, shall
be valid or binding unless set forth in writing and duly executed by the Party against whom enforcement of the amendment, modification,
discharge or waiver is sought (except that this Section 7.04 and Sections 4.05 (No Lender Liability), 6.03 (Effect of Termination),
7.01(b) (Governing Law; Jurisdiction), 7.03 (Assignment), and 7.11 (No Third-Party Beneficiaries) shall not be amended, modified,
discharged, or waived in a manner that is adverse to the Lenders without the prior written consent of the Lenders). No failure
or delay by any Party hereto in exercising any right hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise of any other right hereunder.

 

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Section 7.05      
Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
under any Law or as a matter of public policy, all other conditions and provisions of this Agreement shall nevertheless remain
in full force and effect so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected
in any manner materially adverse to any Party. The Parties shall negotiate in good faith in order to seek to agree on the terms
of a mutually satisfactory provision to be substituted for any provision found to be invalid, illegal or unenforceable.

 

Section 7.06      
Counterparts. This Agreement may be executed in two or more counterparts (including by facsimile or email pdf format),
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

Section 7.07      
Entire Agreement. This Agreement (including the Schedules and Exhibits hereto) constitutes the entire agreement of
the Parties hereto with respect to the subject matter hereof, and supersede any and all previous oral or written agreements or
understandings between the Parties in relation to the matters dealt with herein. The Schedules and Exhibits referred to in this
Agreement are intended to be and hereby are specifically made a part of this Agreement. Any and all previous agreements and understandings
between the Parties regarding the subject matter hereof, whether written or oral, are superseded by this Agreement.

 

Section 7.08      
Notices. Any notice or communication under this Agreement shall be sent to the Parties in English at their respective
addresses set forth below or such other addresses as a Party may from time to time notify the other Parties pursuant to this Section
7.08. Notices may be sent by hand, or by registered mail (internationally recognized courier service if overseas) or by fax or
email, and shall be deemed to be received, if sent by hand, fax or email, one normal working hour (at the place of delivery) after
delivery or transmission, and if by registered mail the second Business Day after posting (or, in the case of international courier
service, on the fifth Business Day following the date of deposit with such courier service, or such earlier delivery date as may
be confirmed in writing to the sender by such courier service).

 

If to Acquiror:

 

Sucampo Pharmaceuticals, Inc.

4520 East-West Highway, 3rd Floor

Bethesda, MD 20814 USA

Attention: General Counsel

Phone: (301) 961-3400

Fax: (301) 961-3440

Email address: [...***...]

 

with a copy (which shall not constitute
notice) to:

 

Cooley LLP

    10

     

    

4401 Eastgate Mall

San Diego, California 92121-1909

Attention: [...***...]

Phone: [...***...]

Fax: [...***...]

Email address: [...***...]

 

If to Seller 1:

 

Dr. Ryuji Ueno

c/o S&R Technology Holdings, LLC

2001 L Street, Suite 750

Washington, D.C. 20036

Phone: [...***...]

Email address: [...***...]

 

If to Seller 2:

 

Dr. Sachiko Kuno

c/o S&R Technology Holdings, LLC

2001 L Street, Suite 750

Washington, D.C. 20036

Phone: [...***...]

Email address: [...***...]

 

If to Seller 3:

 

S & R Technology Holdings, LLC

2001 L Street, NW, Suite 750

Washington, DC 20036

Phone: [...***...]

 

and, in the case of notice to any Seller, with copies
(which shall not constitute notice) to:

 

McGuireWoods LLP

800 East Canal Street

Richmond, Virginia 23219

Attention: [...***...]

Phone: [...***...]

Fax: [...***...]

Email address: [...***...]

 

and:

 

McGuireWoods LLP

800 East Canal Street

Richmond Virginia 23219

Attention: [...***...]

Phone: [...***...]

Fax: [...***...]

    11

     

    

Email address: [...***...]

 

Section 7.09      
Language. This Agreement has been prepared and executed in, and shall be construed in accordance with, the English
language. Any Japanese translation prepared by any Party shall be for convenience purposes only, and in the event of a dispute
as to interpretation of this Agreement, shall have no bearing on such interpretation.

 

Section 7.10      
Fraud. Each Party acknowledges and agrees that nothing herein shall relieve or release a Person of any liability
in connection with any fraudulent or criminal acts committed by such Person, its Affiliates or their respective representatives,
and nothing herein shall provide any indemnification to or release of any Person committing such fraudulent or criminal acts.

 

Section 7.11          
No Third-Party Beneficiaries. Except with respect to this Section 7.11 and Sections 4.05 (No Lender Liability), 6.03
(Effect of Termination), 7.01(b) (Governing Law; Jurisdiction), 7.03 (Assignment), and 7.04 (Amendments and Waivers), which Sections
the Parties expressly agree that the Lenders will be third-party beneficiaries under, the rights created by this Agreement are
solely for the benefit of the Parties hereto and their respective successors or permitted assigns, and no other Person shall have
or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Agreement or
any provision herein contained.

 

Section 7.12          
Further Assurances. If, at any time after the Closing, any further action is necessary or desirable to carry out
the purposes of this Agreement or to vest the Acquiror with full right, title and possession to the Seller Shares, the Sellers
agree to take, and will take, all such lawful and necessary action required to so do or that the Acquiror otherwise reasonably
requests to carry out and give effect to the Sellers’ agreements and undertakings pursuant to this Agreement. In furtherance
thereof, the Sellers hereby agree to execute and deliver, or cause to be executed and delivered, such further instruments or documents
or take such other action as may be necessary or convenient, in the opinion of the Acquiror or the Acquiror’s legal counsel,
to carry out the transactions contemplated hereby.

 

Section 7.13          
Remedies Cumulative; Specific Performance. The rights and remedies of the Parties hereto shall be cumulative (and
not alternative). The Parties to this Agreement agree that in the event of any breach or threatened breach by any Party to this
Agreement of any covenant, obligation or other provision set forth in this Agreement for the benefit of any other Party to this
Agreement, such other Party shall be entitled (in addition to any other remedy that may be available to it) to: (a) a decree or
order of specific performance or mandamus to enforce the observance and performance of such covenant, obligation or other provision,
and (b) an injunction restraining such breach or threatened breach. Each Party agrees not to raise any objections to the availability
of the equitable remedy of specific performance to prevent or restrain breaches of this Agreement by such Party, and to specifically
enforce the terms and provisions of this Agreement to prevent breaches or threatened breaches of, or to enforce compliance with,
the covenants and obligations of such Party under this Agreement all in accordance with the terms of this Section 7.13. Any Party
seeking an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions
of this Agreement shall not be required to provide any bond or other security in connection with such order or injunction all in
accordance with the terms of this Section 7.13.

 

    12

     

    

Section 7.14          
Construction. Unless indicated to the contrary in this Agreement by the context or use thereof: (a) the words, “herein,”
“hereto,” “hereof” and words of similar import refer to this Agreement as a whole and not to any particular
section or paragraph of this Agreement; (b) references in this Agreement to articles, sections or paragraphs refer to articles,
sections or paragraphs of this Agreement; (c) headings of sections are provided for convenience only and should not affect the
construction or interpretation of this Agreement; (d) words importing the masculine gender shall also include the feminine and
neutral genders, and vice versa; (e) words importing the singular shall also include the plural, and vice versa; (f) the words
“include”, “includes” and “including” shall be deemed to be followed by the phrase “without
limitation”; (g) any reference to a statute refers to such statute as it may have been or may be amended from time to time,
or to such statute’s successor, and shall be deemed also to refer to all rules and regulations promulgated thereunder; (h)
any reference to a Contract or other document as of a given date means the Contract or other document as amended, supplemented
and modified from time to time through such date; (i) “or” shall include the meanings “either” or
“both”; and (j) the symbols “JPY” or “¥” shall refer to the lawful currency of Japan. The
Parties hereto agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party
shall not be applied in the construction or interpretation of this Agreement.

 

[remainder of page intentionally left
blank]

 

 

 

    13

     

    

 

IN WITNESS WHEREOF, the Parties
have executed this Agreement as of the date first above written.

 

 

	/s/ Ryuji Ueno	 
	Dr. Ryuji Ueno	 
	 	 	 
	 	 	 
	 	 	 
	/s/ Sachiko Kuno	 
	Dr. Sachiko Kuno	 
	 	 	 
	 	 	 
	 	 	 
	S&R TECHNOLOGY HOLDINGS, LLC	 
	 	 
	 	 
	By:	/s/ Ryuji Ueno	 
	Name: 	Dr. Ryuji Ueno	 
	Title: 	President	 
	 	 	 
	 	 	 
	 	 	 
	SUCAMPO PHARMACEUTICALS, INC.	 
	 	 
	 	 
	By:	/s/ Peter Greenleaf	 
	Name: 	Peter Greenleaf	 
	Title: 	Chief Executive Officer	 

 

 

 

     

     

    

Exhibit
A

certain definitions

 

For purposes of this Agreement (including
this Exhibit A):

 

“Acquiror”
shall have the meaning set forth in the preamble hereto.

 

“Acquiror
Confidential Information” shall have the meaning set forth in Section 4.04(a).

 

“Acquisition
Transaction” shall mean any transaction involving: (i) the sale, license, disposition or acquisition of all or
a material portion of the Company’s business or assets; (ii) the issuance, disposition or acquisition of (A) any capital
stock or other equity security of the Company (other than Common Stock issued to employees of the Company, upon exercise of stock
options or otherwise, in routine transactions in accordance with the Company’s past practices), (B) any option, call, warrant
or right (whether or not immediately exercisable) to acquire any capital stock or other equity security of the Company (other than
stock options granted to employees of the Company in routine transactions in accordance with the Company’s past practices),
or (C) any security, instrument or obligation that is or may become convertible into or exchangeable for any capital stock or other
equity security of the Company; or (iii) any merger, consolidation, share exchange, tender offer (other than the Tender
Offer), business combination, reorganization or similar transaction involving the Company.

 

“Action”
shall mean any claim, action, suit, arbitration, mediation, proceeding or investigation, whether civil, criminal or administrative,
by or before any Governmental Authority or arbitral body.

 

“Affiliate”
shall mean, (i) with respect to a particular individual, (A) the individual’s spouse and any parent, child, sibling, grandparent,
grandchild, aunt, uncle, niece, nephew of the individual or the individual’s spouse, (B) any Person that is directly or indirectly
controlled by the particular individual or any such family member of the particular individual or his/her spouse, (C) any Person
in which the particular individual or any such family member of the particular individual or his/her spouse has a material financial
interest, and (D) any Person with respect to which the particular individual or such family member of the particular individual
or his/her spouse serves as a director, officer or partner (or in a similar capacity); and (ii) with respect to any specified Person
other than an individual, (A) any Person that directly, or indirectly through one or more intermediaries, Controls, or is Controlled
by, or is under common Control with, the Person specified, (B) any Person in which the specified Person has a material financial
interest, and (C) any Person which has a material financial interest in the specified Person. “Control” and
its derivative words mean the possession, direct or indirect, of the power to direct or cause the direction of the decisions, management
and policies of a Person, whether through the ownership of voting securities, by contract or otherwise, including the ability to
elect the majority of the directors or the members of a similar governing body of a Person.

 

“Agreement”
shall have the meaning set forth in the preamble hereto.

 

“Announcement
Date” shall have the meaning set forth in Section 1.02.

 

 

    3.01(i)-1

     

    

“Business
Day” shall mean any day other than a Saturday or Sunday, or any other day on which commercial banks in Tokyo, Japan or
New York in the U.S.A. are authorized or required by applicable Law to close.

 

“Closing”
shall have the meaning set forth in Section 2.01.

 

“Closing
Date” shall have the meaning set forth in Section 2.01.

 

“Closing
Payments” shall have the meaning set forth in Section 1.02.

 

“Common
Stock” shall have the meaning set forth in the recitals hereto.

 

“Company”
shall have the meaning set forth in the recitals hereto.

 

“Consent”
means any approval, consent, ratification, permission, waiver, or authorization.

 

“Contract”
shall mean any contract, agreement, instrument, undertaking, indenture, commitment, loan, license or other legally binding obligation,
whether written or oral.

 

“FIEL”
shall mean the Financial Instruments and Exchange Law of Japan (kinyuu-shohin-torihiki-ho) (Law No. 25 of 1948, as amended).

 

“Financing”
shall have the meaning set forth in the recitals hereto.

 

“Financing
Commitment” shall have the meaning set forth in the recitals hereto.

 

“Financing
Party” shall have the meaning set forth in Section 4.05.

 

“Governmental
Authority” shall mean any domestic, foreign or supranational government, governmental authority, court, tribunal, agency
or other regulatory, administrative or judicial agency, commission or organization (including self-regulatory organizations), tribunal
or arbitral body, stock exchange, and any subdivision, branch or department of any of the foregoing.

 

“Indemnifying
Party” shall have the meaning set forth in Section 5.03.

 

“Jefferies”
shall have the meaning set forth in the recitals hereto.

 

“Law”
shall mean, with respect to any Person, any law, statute or ordinance, or any rule, regulation, standard, judgment, order, writ,
injunction, ruling, decree, arbitration award, agency requirement, license or permit of any Governmental Authority that is legally
binding on such Person.

 

“Lenders”
shall mean Jefferies and a syndicate of banks, financial institutions and other lenders providing the Financing pursuant to the
terms of the Financing Commitment.

 

“Lien”
shall mean a lien, charge, option, mortgage, pledge, security interest, claim, deed of trust, hypothecation or encumbrance of any
kind.

 

     

     

    

“Losses”
shall mean damages, losses or liabilities (including judgments, awards, interest and penalties), together with costs and expenses
reasonably incurred, including the reasonable fees and disbursements of legal counsel.

 

“Majority
Share Acquisition” shall mean the consummation, pursuant to the Tender Offer, of the acquisition by Tender Sub of more
than fifty percent (50%) of the outstanding shares of Common Stock of the Company held by Persons other than the Sellers (calculated
on a fully diluted basis).

 

“Order”
shall mean any order, injunction, judgment, decree, ruling, assessment, judicial or administrative order, award or determination
of any Governmental Authority or arbitrator.

 

“Organizational
Documents” shall mean the articles of incorporation, the rules of the board of directors, the share handling regulations,
the partnership agreement, the limited liability company agreement, the operating agreement or other similar governing instruments,
in each case as amended as of the date specified, of any Person.

 

“Parties”
and “Party” shall have the meanings set forth in the preamble hereto.

 

“Per Share
Purchase Price” shall mean 1,400 JPY.

 

“Person”
shall mean any natural person, general or limited partnership, limited liability company, limited liability partnership, corporation,
joint stock company, trust, unincorporated association, joint venture, Governmental Authority, or other entity, whether acting
in an individual, fiduciary or other capacity.

 

“Related Party Agreements”
shall have the meaning set forth in Section (i) of Schedule 3.01.

 

“Representative” shall
mean, with respect to any Person, any officer, director, employee, agent, attorney, accountant, advisor, financing source or other
representative of such Person.

 

“Seller,” “Sellers,”
“Seller 1,” “Seller 2,” and “Seller 3” shall have the meaning set
forth in the preamble hereto.

 

“Seller Confidential Information”
shall have the meaning set forth in Section 4.04(b).

 

“Seller Shares” shall
have the meaning set forth in the recitals hereto.

 

“Share Offer Price”
shall have the meaning set forth in the recitals hereto.

 

“Taxes”
shall mean all taxes, charges, fees, levies or other assessments, including income, capital, gross receipts, excise, property,
stamp, registrations, sales, license, payroll, consumption, withholding and franchise taxes, escheat obligation, and any secondary
tax liability, imposed by Japan or any other country or any local government or taxing authority or political subdivision or agency
thereof or therein, and such term shall include any interest, penalties or additions attributable to such taxes, charges, fees,
levies or other assessments.

 

“Tender
Offer” shall have the meaning set forth in the recitals hereto.

 

     

     

    

“Tender
Sub” shall have the meaning set forth in the recitals hereto.Exhibit

Exhibit 10(o)

McDonald’s Corporation
Severance Plan

As Amended and Restated Effective September 30, 2015

TABLE OF CONTENTS
	
					
	 
	 
	 
	 
	Page

	ARTICLE I.  ‐ Statement of Purpose
	1

	ARTICLE II. ‐ Definitions
	1

	ARTICLE III. ‐ Eligibility
	5

	ARTICLE IV.  ‐ Benefits
	6

	 
	 
	 
	 

	 
	Section 4.1.
	 
	Computation of Severance Pay
	6

	 
	Section 4.2.
	 
	Medical, Dental and Vision Coverage
	6

	 
	Section 4.3.
	 
	Transitional Assistance
	7

	 
	Section 4.4.
	 
	Stock Options and Restricted Stock Units
	7

	 
	Section 4.5.
	 
	Sabbatical
	7

	 
	Section 4.6.
	 
	Prorated TIP Bonuses
	7

	 
	Section 4.7.
	 
	Company Vehicle
	7

	 
	Section 4.8.
	 
	Prorated CPUP Payment
	8

	 
	Section 4.9.
	 
	Timing Rules for Certain Reimbursements and Payments
	8

	 
	 
	 
	 
	 

	ARTICLE V. ‐ Payment of Severance Pay and Sabbatical Pay
	8

	 
	 
	 
	 
	 

	 
	Section 5.1.
	 
	Form and Timing of Payments
	8

	 
	Section 5.2.
	 
	Delayed Payment Date for Key Employees
	8

	 
	Section 5.3.
	 
	Death of Qualifying Employee
	9

	 
	Section 5.4.
	 
	Offsets for Foreign Severance Benefits
	9

	 
	 
	 
	 
	 

	ARTICLE VI. ‐ Requirement of Effective Release; Integration with Other Benefits
	9

	 
	 
	 
	 
	 

	 
	Section 6.1.
	 
	Releases Generally
	9

	 
	Section 6.2.
	 
	Benefit Programs Generally
	10

	 
	Section 6.3.
	 
	Severance Not Compensation; Severance Period Not Service
	10

	 
	Section 6.4.
	 
	Increases in Compensation, Stock Option Grants and Restricted Stock Units
	11

	 
	Section 6.5.
	 
	Limitations on Severance
	11

	 
	 
	 
	 
	 

	ARTICLE VII. ‐ Discontinuance or Repayment of Benefits Upon Re-Employment or For                      Cause
	11

	 
	 
	 
	 
	 

	 
	Section 7.1.
	 
	Discontinuance or Repayment upon Re-Employment
	11

	 
	Section 7.2.
	 
	Discontinuance or Repayment for Cause
	11

	 
	 
	 
	 
	 

	ARTICLE VIII.  ‐ Plan Administration
	12

	 
	 
	 
	 
	 

	ARTICLE IX. ‐ Claims Procedure
	12

	 
	 
	 
	 
	 

	 
	Section 9.1.
	 
	Filing a Claim
	12

	 
	Section 9.2.
	 
	Review of Claim Denial
	13

	 
	 
	 
	 
	 

	ARTICLE X. ‐ Amendment and Termination
	13

	
					
	ARTICLE XI. ‐ Miscellaneous
	14

	 
	 
	 
	 
	 

	 
	Section 11.1.
	 
	Qualifying Employee Information
	14

	 
	Section 11.2.
	 
	Successors and Assigns
	14

	 
	Section 11.3.
	 
	Employment Rights
	14

	 
	Section 11.4.
	 
	Controlling Law
	14

	 
	Section 11.5.
	 
	Notices
	14

	 
	Section 11.6.
	 
	Interests Not Transferable
	14

	 
	Section 11.7.
	 
	Mistake of Fact or Law
	14

	 
	Section 11.8.
	 
	Representations Contrary to the Plan
	15

	 
	Section 11.9.
	 
	Plan Funding
	15

	 
	Section 11.10.
	 
	Headings
	15

	 
	Section 11.11.
	 
	Severability
	15

	 
	Section 11.12.
	 
	Withholding
	15

	 
	Section 11.13.
	 
	Indemnification
	15

	 
	 
	 
	 
	 

	Appendix I ‐ Schedule of Severance Benefits
	 

	 
	 
	 
	 
	 

McDONALD’S CORPORATION
SEVERANCE PLAN

ARTICLE I.
Statement of Purpose

McDonald’s Corporation has established the McDonald’s Corporation Severance Plan to provide financial assistance through severance payments and other benefits to employees on the United States payroll who are subject to United States taxation and whose employment with an Employer hereunder is terminated in a Covered Termination.
The Plan is intended to be an unfunded welfare benefit plan for purposes of the Employee Retirement Income Security Act of 1974, as amended, and a severance pay plan within the meaning of the United States Department of Labor regulation section 2510.3-2(b).  All prior existing severance pay plans, programs and practices for employees (other than the McDonald’s Corporation Change of Control Severance Plan), whether formal or informal, are hereby revoked and terminated for Covered Employees.  This document applies to Covered Employees whose Covered Termination occurs on and after September 30, 2015.  The payment of severance benefits to any Employee who had a Covered Termination prior to September 30, 2015 shall be determined in accordance with the terms of the Plan in effect at the time of such Employee’s Covered Termination.
ARTICLE II.
Definitions

Cash Performance Unit Plan or CPUP.  “Cash Performance Unit Plan” or “CPUP” means the McDonald’s Cash Performance Unit Plan, the long-term incentive plan for eligible Officers or, if applicable, such other long-term cash incentive plan of an Employer as may be in effect as of a Qualifying Employee’s Termination Date.
Cause.  “Cause” means any one or more of the following:
		
	(a)
	an Employee’s commission of any act or acts involving dishonesty, fraud, illegality or moral turpitude;

		
	(b)
	an Employee’s willful or reckless material misconduct in the performance of his or her duties; 

		
	(c)
	an Employee’s willful habitual neglect of material duties; or 

		
	(d)
	an Employee’s serious and reckless or intentional violation of McDonald’s Standards of Business Conduct.

Change of Control Severance Plan.  “Change of Control Severance Plan” means a McDonald’s Corporation Tier I or Tier II Change of Control Employment Agreement, established as of January 1, 2008, as each is amended from time to time.

Claim.  “Claim” means a written application for Severance Benefits under Section 9.1 of the Plan.
Claimant.  “Claimant” means any individual who believes that he or she is eligible for Severance Benefits under this Plan and files a claim pursuant to Section 9.1 of the Plan.
COBRA.  “COBRA” means the provisions regarding healthcare continuation coverage set forth in Section 601 et seq. of ERISA and Section 4980B of the Code.
COBRA Premium.  “COBRA Premium” means the monthly cost of providing healthcare continuation coverage for a qualified beneficiary under COBRA, as adjusted from time to time.
Code.  “Code” means the Internal Revenue Code of 1986, as amended.
Company Service Date.  “Company Service Date” means an Employee’s first day of full-time employment or benefits eligible part-time employment with an Employer as determined by McDonald’s Human Resources Department.
Compensation.  “Compensation” means the defined term under McDonald’s Corporation Profit Sharing and Savings Plan, McDonald’s Corporation Excess Benefit and Deferred Bonus Plan and any other long-term incentive plan, welfare benefits plan, deferred compensation arrangement, fringe benefit, practice or policy maintained by an Employer as described in Section 6.3 of the Plan. 
Covered Employee.  “Covered Employee” means an Employee who has been notified by McDonald’s Corporation that he or she has a Covered Termination making them eligible for Severance Benefits under the Plan as described in Article III.
Covered Termination.  “Covered Termination” means an Employee’s Separation from Service due to:
		
	(a)
	Reduction in the work force;

		
	(b)
	Elimination of a position or job restructuring;

		
	(c)
	Elimination of a position due to outsourcing; or

		
	(d)
	Termination of employment by an Employer without Cause.

A Covered Termination does not include the Separation from Service of (i) any Employee who is being terminated for performance reasons, (ii) an Officer who is entitled to receive benefits under the Executive Retention Replacement Plan or (iii) an Employee who is eligible to receive benefits under the Change of Control Severance Plan with respect to such Separation from Service.  In addition, an Employee’s Separation from Service will not be treated as a Covered Termination hereunder if the Employee fails to return all property of the Employers (including, without limitation, automobiles (unless previously purchased in accordance with the applicable Schedule), keys, credit cards, documents and records, identification cards, equipment, phones, computers, etc.) within fifteen (15) days after the Employee’s Separation from Service.
2

Employee.  “Employee” means an employee (including an Officer) of an Employer who is on the Employer’s United States payroll and is subject to taxation in the United States, but excluding those employees who are classified as Interns and restaurant management employees hired on a temporary basis for a period that does not exceed six months.
Employer.  “Employer” means for purposes of this Plan, McDonald’s Corporation and the following Related Entities:  McDonald’s USA, LLC; McDonald’s Latin America, LLC; McDonald’s APMEA, LLC; McDonald’s International, LLC and McDonald’s Europe, Inc. and Restaurant Application Development International.
ERISA.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
Executive Retention Replacement Plan.  “Executive Retention Replacement Plan” means the McDonald’s Corporation Executive Retention Replacement Plan.
Key Employee.  “Key Employee” means a “specified employee” as determined in accordance with the McDonald’s Corporation Section 409A Specified Key Employee Policy adopted as in effect on January 1, 2008 and as amended from time to time in accordance with Treasury Regulation Section 1.409A-1(i).
McDonald’s Corporation.  “McDonald’s Corporation” means McDonald’s Corporation and its successors and assigns.
Officer.  “Officer” means an Employee in the leadership band and above.
Plan.  “Plan” means the McDonald’s Corporation Severance Plan as set forth in this document.
Plan Administrator.  “Plan Administrator” means the person responsible for administration of the Plan as set forth in Article VIII of the Plan.
Plan Year.  The “Plan Year” shall be the calendar year for record keeping purposes.
Prorated CPUP.  “Prorated CPUP” means the cash lump sum payment described in Section 4.8 for certain Qualifying Employees who are eligible for a pro rata long-term cash incentive bonus under CPUP for the performance period during which the Qualifying Employee’s Termination Date occurs.
Prorated TIP.  “Prorated TIP” means the cash lump sum payment for certain Qualifying Employees described in Section 4.6 of the Plan who are eligible for a pro rata bonus under McDonald’s TIP.
Qualifying Employee.  “Qualifying Employee” means each Covered Employee who meets the requirements set forth in the Plan, including, without limitation, the requirement to sign a Release Agreement within the time frame described in Section 6.1 and not revoke or rescind the Release Agreement.
3

Related Entity.  “Related Entity” means a corporation, trade, or business if it and McDonald’s Corporation are members of a controlled group of corporations as defined in Section 414(b) of the Code or under common control as defined in Section 414(c) of the Code. 
Release Date.  “Release Date” means the date upon which a Qualifying Employee’s signed Release Agreement required under Section 6.1 of the Plan becomes irrevocable and non-rescindable.
Schedule.  “Schedule” means the schedules attached as Appendix I to the Plan which describe the duration and which Severance Benefits under the Plan are available for different categories of Qualifying Employees.
Separation from Service.  “Separation from Service” means an Employee’s cessation of the performance of services for McDonald’s Corporation and all of its Related Entities; provided that a “Separation from Service” shall not be deemed to have occurred for purposes of this Plan unless the relevant circumstances constitute the Employee’s “Separation from Service” with McDonald’s Corporation and all of its Related Entities within the meaning of Section 409A of the Code.  In general, neither a transfer of employment from an Employer to another Related Entity nor a change in status from Employee to independent contractor or similar non-employee service provider to an Employer or any Related Entity will be treated as a Separation from Service.
Severance Benefits.  “Severance Benefits” means the Severance Pay and any other benefit payable pursuant to this Plan.
Severance Pay.  “Severance Pay” means the lump sum cash payment made to a Qualifying Employee pursuant to Section 4.1 of the Plan.
Severance Period.  “Severance Period” means the period of time equal to the Qualifying Employee’s Weeks of Severance commencing on his or her Termination Date.
Termination Date.  A Covered Employee’s “Termination Date” is the date on which a Covered Termination becomes effective.
Termination Notice Date.  A “Termination Notice Date” is the date on which a Covered Employee receives notice that he or she has a Covered Termination under the Plan.
TIP.  “TIP” means McDonald’s Target Incentive Plan or any annual bonus plan that replaces the Target Incentive Plan.
TIP-Eligible.  A Qualifying Employee is “TIP-Eligible” if his or her Termination Date is on or after March 1 of a calendar year and the Qualifying Employee is eligible to participate in TIP for the calendar year in which his or her Covered Termination occurs.
Weekly Base Pay.  “Weekly Base Pay” means the base salary or base wages that a Qualifying Employee earns during a week, based upon rate of pay in effect for the Qualifying Employee immediately before the Qualifying Employee’s Termination Date, excluding overtime or any special payments, and is used to compute the amount of Severance Pay under Section 4.1 of the 
4

Plan.  For part-time employees weekly pay is determined by the average number of weekly hours worked during the preceding 12 months, or shorter period of employment, if applicable.  However, for part-time employees of Restaurant Application Development International, average weekly base pay shall be determined using the six weeks immediately preceding termination of employment.
Offsets for Foreign Severance Benefits.   If a Qualifying Employee is entitled to receive severance compensation as a statutory or government-funded benefit under the laws of a foreign country, the Severance Benefits that would otherwise be payable under this Plan may be offset by such severance compensation as the Plan Administrator determines in his or her discretion.
Weeks of Severance.  “Weeks of Severance” means the weeks for each Year of Service of a Qualifying Employee subject to the minimum and maximum Weeks of Severance as set forth in the Schedule applicable to such Qualifying Employee.
Year of Service.  A “Year of Service” for purposes of computing the amount of Severance Pay under Section 4.1 of the Plan means each complete twelve-month period beginning on the Qualifying Employee’s Company Service Date and ending on the Qualifying Employee’s Termination Date, with any period of less than 6 months being rounded down to the nearest complete twelve-month period and any period of 6 months or more being rounded up to the nearest complete twelve-month period.  For example, a period of 10 years, 8 months and 3 days shall equal eleven Years of Service and a period of 10 years, 5 months and 3 days shall equal ten Years of Service.

ARTICLE III.
Eligibility

To be eligible for Severance Benefits under the Plan, an Employee must be subject to United States taxation and must be on the United States active payroll of an Employer (or must be an Employee who would be on the United States payroll but for the fact that, immediately prior to his or her Termination Date, the Employee is on a leave of absence or receiving short-term disability benefits) immediately before his or her Termination Date.  Such an Employee must be designated for a Covered Termination by McDonald’s Corporation and be notified that he or she has been so designated under the Plan as a Covered Employee.  The fact that an Employee receives notice of termination of employment, or an Employee’s employment actually terminates, shall not automatically entitle such Employee to be considered a Covered Employee nor automatically cause such termination to be considered a Covered Termination.
McDonald’s Corporation shall establish procedures and processes for implementing Covered Terminations.  These procedures and processes may differ depending on the business needs and priorities of the affected work unit.  In the case of any Officer who is an officer of McDonald’s Corporation within the meaning of Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended (as determined by the Board of Directors of McDonald’s Corporation), the Compensation Committee of the Board of Directors of McDonald’s Corporation shall determine whether such Officer shall be treated as a Covered Employee and to what extent such Officer will be entitled to receive Severance Benefits under this Plan and the determinations of the 
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Compensation Committee shall be final and binding.  Officers who are entitled to receive benefits under the Executive Retention Replacement Plan are not eligible for benefits under this Plan.  In addition, any Employee who is entitled to receive benefits under the Change of Control Severance Plan with respect to his or her Separation from Service shall not be eligible for benefits under this Plan.

ARTICLE IV.
Benefits

In General.  Each Qualifying Employee shall be entitled to Severance Pay and other Severance Benefits in accordance with this Article IV and Article V below, together with the Schedules included in Appendix I to this Plan applicable to the different categories of Qualifying Employees.  Except as provided in Section 5.2, to the extent there is any conflict between the provisions of the Plan and an applicable Schedule, the provisions of the Schedule shall control.  If a Qualifying Employee would be covered by both (i) Schedule A, B, C or D and (ii) the Schedules dealing with special circumstances (Schedule E, F or G), then Schedule E, F or G, as applicable, shall be the only Schedule that applies to that Qualifying Employee, except to the extent that provisions of another Schedule are incorporated by reference in the special circumstance Schedules.  If a Qualifying Employee is a part-time Employee who is not benefits eligible as described in Schedule H, the only benefit payable under the Plan shall be Severance Pay for the duration specified in Schedule H.

Section 4.1.    Computation of Severance Pay.  A Qualifying Employee shall receive Severance Pay in a lump sum amount equal to his or her Weekly Base Pay multiplied by the Qualifying Employee’s Weeks of Severance.

Section 4.2.    Medical, Dental and Vision Coverage.  Unless otherwise provided in the applicable Schedule, if a Qualifying Employee is entitled to file, and does timely file, an election to continue any health benefits under a medical, dental and/or vision benefit program sponsored by McDonald’s Corporation in accordance with the provisions of COBRA, the Employer shall pay a portion of such COBRA Premiums, as specified in the next sentence, during the Severance Period, out of the total period of eighteen months normally provided for by COBRA.  During the Severance Period, the Qualifying Employee shall be required to pay a portion of the COBRA Premiums equal to what he or she would pay for such health benefits under the applicable program of McDonald’s Corporation, if he or she had remained employed, and the Employer shall pay the balance of such COBRA Premiums.  The Employer’s payments, as applicable, shall be made to the entity funding the applicable plan coverage, and not to the Qualifying Employee.  The Qualifying Employee must pay his or her share of such COBRA Premiums and may not have such cost withheld from the Severance Pay nor contributed to any cafeteria or flexible spending account.  After the Severance Period ends, any further COBRA to which the Qualifying Employee may be entitled shall continue only if the Qualifying Employee pays the full cost thereof at the rate of 102% of both the employee and the employer premium costs under the applicable plans.  The Employers shall not pay any portion of the COBRA Premiums for more than twelve months, regardless of whether the Qualifying Employee or his or her eligible dependents have an additional qualifying event under COBRA.  Notwithstanding the foregoing, if COBRA is no longer required to be provided to a Qualifying Employee under the federal laws 
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governing COBRA during the Severance Period, all payments of COBRA Premiums for that Qualifying Employee under this Plan will also end.
Section 4.3.    Transitional Assistance.  The Employers shall provide each Qualifying Employee with transitional assistance only if and only to the extent set forth in the applicable Schedule.  The Qualifying Employee must start the transitional process within 60 days of the Termination Date.  In no event shall any Qualifying Employee be entitled to receive cash or other benefits in lieu of such transitional assistance.
Section 4.4.    Stock Options and Restricted Stock Units.  Any equity compensation (including, without limitation, stock options and restricted stock units) granted to a Covered Employee under any equity incentive plan maintained by McDonald’s Corporation that is outstanding immediately before the Termination Date shall be treated in accordance with the terms of the equity incentive plan, prospectus and grant applicable to such equity compensation.
Section 4.5.    Sabbatical.  A Qualifying Employee shall receive a lump sum sabbatical payment equal to eight weeks of Weekly Base Pay if:  (a) the Qualifying Employee was entitled to take a sabbatical leave immediately before his or her Termination Date; or (b) the Qualifying Employee was eligible for McDonald’s Corporation’s sabbatical program and the Termination Date occurs on or after the ninth, nineteenth, twenty-ninth or thirty-ninth anniversary of the Qualifying Employee’s Company Service Date but before the beginning of the year in which the tenth, twentieth, thirtieth or fortieth anniversary thereof occurs.  In no event shall a Qualifying Employee receive more than one sabbatical payment or more than a total of eight weeks of Weekly Base Pay under this Section 4.5.
Section 4.6.    Prorated TIP Bonuses.  A Qualifying Employee who is TIP-Eligible shall also be entitled to receive a Prorated TIP payment, if the Qualifying Employee terminated employment on or after March 1 of a calendar year.  The Prorated TIP payment shall be prorated based on a fraction, the numerator of which is the number of days from January 1 through the Termination Date in the calendar year and the denominator of which is 365 (or 366 in a leap year).  The Prorated TIP payment shall be based on the actual performance of McDonald’s Corporation and its subsidiaries and business units during the annual performance period and shall be subject to supervisory discretion for the individual performance factor.  The Prorated TIP payment will be made at the same time TIP payments are made to active employees.
Section 4.7.    Company Vehicle.  A Qualifying Employee who has a company-provided vehicle may purchase it and, in certain cases, may receive a prorated cash reimbursement for recent upgrades related to such vehicle, as determined by McDonald’s Fleet Management Department and the terms of the McDonald’s Corporation Vehicle Program applicable to the Qualifying Employee.  In no event will the initial salary reduction of $1,200 paid by Home Office employees ($1,500 in the case of Officers) be refunded or repaid to the Employee.
In order to exercise the right to purchase his or her company-provided vehicle, a Qualifying Employee must provide notice of such exercise and complete the purchase in accordance with the procedures determined by McDonald’s Fleet Management Department, but in no event may the purchase take place before his or her Release Date.  If the Covered Employee’s Termination Date occurs before his or her Release Date, the Covered Employee must return his or her 
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company-provided vehicle on his or her Termination Date, and the vehicle shall be returned to him or her when such purchase can be completed.
Section 4.8.    Prorated CPUP Payment.  A Qualifying Employee who is eligible to participate in CPUP may be entitled to receive a Prorated CPUP payment if the Qualifying Employee has a Covered Termination under CPUP.  The Prorated CPUP payment, if any, shall be pro-rated based on the calculation set forth in the CPUP plan document.  The Prorated CPUP payment, if any, shall be based on the actual performance of McDonald’s Corporation during the applicable performance period.  The Prorated CPUP payment will be paid to the Qualifying Employee at the same time CPUP payments are made to other eligible active employees.
Section 4.9.    Timing Rules for Certain Reimbursements and Payments.  Officer and director level employees are entitled to reimbursement for certain financial planning expenses for the year in which their Termination Date occurs.  The financial planning services must be both completed and submitted for reimbursement within three months after the Qualifying Employee’s Termination Date or, if earlier, by the last day of the year in which the Termination Date occurs.  Expenses submitted after this date will not be reimbursed.  Officers who are entitled to executive physicals must complete their physical within six months of the Qualifying Employee’s Termination Date.  If a Qualifying Employee’s spouse is also eligible for a physical, the spouse also must complete the physical within six months of the Qualifying Employee’s Termination Date.
ARTICLE V.
Payment of Severance Pay and Sabbatical Pay

Section 5.1.    Form and Timing of Payments.  Except as provided in Section 5.2, a Qualifying Employee’s Severance Pay and sabbatical pay, if any, shall be paid to the Qualifying Employee in a single lump sum as soon as reasonably practicable following the later of the Termination Date or the Release Date, but in no event later than 90 days after the Termination Date; provided, however that the Plan Administrator may, in his or her sole  discretion, cause the Employer to make such payments at any time during the 90 day period following the Termination Date even if prior to the Release Date.  Notwithstanding the foregoing, payment of the Severance Pay and the sabbatical pay is expressly conditioned on timely execution of a Release Agreement in accordance with Section 6.1.  If a Qualifying Employee fails to execute the Release Agreement during the time frame specified in Section 6.1, the Covered Employee shall forfeit his or her right to receive the Severance Pay and sabbatical pay and shall repay any Severance Pay and sabbatical pay the Covered Employee previously received.  The Employers shall have the right to seek enforcement of this repayment right in any court of competent jurisdiction.
Section 5.2.    Delayed Payment Date for Key Employees.  Notwithstanding any provision in this Plan or any applicable Schedule to the contrary, if a Qualifying Employee is a Key Employee as of his or her Termination Date, the payment of such Qualifying Employee’s Severance Pay and sabbatical pay, if any, shall be delayed until and shall be paid on the date that is six months after his or her Termination Date or in accordance with Section 5.3 if the Qualifying Employee dies before the end of such six month period. 
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Section 5.3.    Death of Qualifying Employee.  In the event a Qualifying Employee (including a Qualifying Employee who is a Key Employee) dies before receiving his or her Severance Pay and sabbatical pay under the Plan, the Qualifying Employee’s Severance Pay and sabbatical pay shall be paid in a lump sum as soon as practicable following the Qualifying Employee’s death, but not later than 90 days following the Qualifying Employee’s death, to the beneficiary designated by the Qualifying Employee under the McDonald’s Corporation Profit Sharing and Savings Plan.  If a deceased Qualifying Employee has failed to designate a specific beneficiary under the McDonald’s Corporation Profit Sharing and Savings Plan, or if the designated beneficiary dies before the Qualifying Employee has received his or her Severance Pay and sabbatical pay, payment of the Qualifying Employee’s Severance Pay and sabbatical pay shall be made to the Qualifying Employee’s spouse if the Qualifying Employee is married as of the date of his or her death or otherwise to the Qualifying Employee’s estate.
Section 5.4.    Offsets for Foreign Severance Benefits.  If a Qualifying Employee is entitled to receive severance compensation as a statutory or government-funded benefit under the laws of a foreign country, the Severance Benefits that would otherwise be payable under this Plan may be offset by such severance compensation as the Plan Administrator determines in his or her discretion.

ARTICLE VI.
Requirement of Effective Release; Integration with Other Benefits
Section 6.1.    Releases Generally.  In addition to the requirements of Article III of the Plan, it shall be a condition of eligibility for Severance Benefits under the Plan that the Covered Employee shall have timely signed a release agreement (the “Release Agreement”) within the period of time specified below and shall not have timely revoked or rescinded such Release Agreement.  Such Release Agreement shall be in a form acceptable to the Plan Administrator that complies with applicable law and which is appropriate for the Covered Employee’s classification.  The Release Agreement may include a covenant not to compete with McDonald’s Corporation or its subsidiaries.  A Release Agreement must be signed no later than the date specified in the form of Release Agreement provided to the Covered Employee by the Plan Administrator; provided, however, that such date shall not be more than 60 days after the Covered Employee’s Termination Date.  McDonald’s Corporation shall provide a Covered Employee with an executable form of Release Agreement no later than five (5) business days following the Covered Employee’s Termination Date.
Except as provided in Section 5.1, no Severance Pay or sabbatical pay will be paid to a Covered Employee unless and until the Covered Employee timely signs the Release Agreement and the period of time for revoking or rescinding such agreement under applicable law has expired without the Covered Employee having revoked or rescinded such agreement.  Severance Benefits other than Severance Pay and sabbatical payments shall be provided to a Covered Employee in accordance with Article III until such time as the Covered Employee either (a) fails to sign a Release Agreement within the time specified above or (b) timely revokes or rescinds an executed Release Agreement, at which time the Covered Employee shall cease to receive any further Severance Benefits under this Plan and shall repay McDonald’s Corporation the cost of 
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any Severance Benefits previously received by the Covered Employee.  The Employers shall have the right to seek enforcement of this repayment right in any court of competent jurisdiction.
If a Covered Employee dies prior to the expiration of the time frame for signing the Release Agreement, the requirement for executing the Release Agreement shall be waived and the Severance Pay and sabbatical pay shall be paid in accordance with Section 5.3.
Section 6.2.    Benefit Programs Generally.  Except as provided in Section 6.5 below, Severance Benefits under this Plan are in addition to all pay and other benefits normally payable to a Qualifying Employee as of his or her Termination Date according to the established applicable policies, plans, and procedures of McDonald’s Corporation and its Related Entities (other than severance pay plans, programs and practices, which have been revoked and terminated for Covered Employees pursuant to Article I above).  Without limiting the generality of the foregoing, each Qualifying Employee shall be paid for any accrued but unused vacation as of his or her Termination Date.  If a Qualifying Employee’s Termination Date occurs in a year when he or she is eligible for an extra week of vacation under the “Splash Program,” the Qualifying Employee will be paid for any unused Splash vacation.  In addition, any benefit continuation or conversion rights to which a Qualifying Employee is entitled as of his or her Termination Date shall be made available to him or her.  On a Qualifying Employee’s Termination Date, all benefit plans, policies, fringe benefits and pay practices in which the Qualifying Employee was participating shall cease to apply to the Qualifying Employee in accordance with the terms of such benefits plans, policies, procedures and practices that apply to any other employee terminating employment with McDonald’s Corporation or its Related Entities, as applicable and in accordance with the requirements of any applicable law, unless such benefits are specifically continued as a Severance Benefit under this Plan.  In addition, the Employers will waive repayment by a Qualifying Employee of sabbatical, relocation and/or short-term disability benefits that otherwise would be required if the Qualifying Employee did not return to active employment under the terms of the applicable sabbatical, relocation or short-term disability program of the Employer.  Finally, the Employers will continue to provide educational assistance for any class that the Qualifying Employee has begun to attend before his or her Termination Notice Date, provided that the Qualifying Employee complies with all requirements for such assistance and notifies the educational assistance service center of his or her Covered Termination within two weeks after his or her Termination Notice Date.
Section 6.3.    Severance Not Compensation; Severance Period Not Service.  Payments for vacation pursuant to Section 6.2 shall be Compensation for purposes of determining any benefits provided under McDonald’s Corporation Profit Sharing and Savings Plan and the McDonald’s Corporation Excess Benefit and Deferred Bonus Plan to the extent so provided in the applicable plan documents.  Except as provided in the preceding sentence, Severance Benefits under this Plan shall not be construed as Compensation for purposes of determining any benefits provided under McDonald’s Corporation Profit Sharing and Savings Plan, the McDonald’s Corporation Excess Benefit and Deferred Bonus Plan, any long-term incentive plan, or any other welfare benefit plan, deferred compensation arrangement, fringe benefit, practice or policy maintained by an Employer for its employees.  The period of time during which Severance Benefits are being paid out or provided shall not count as credited service for any benefit program, payroll practice (such as entitlement to vacation or sabbatical) or for any other welfare benefit, profit sharing, 
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savings, retirement or deferred compensation benefit or fringe benefit plan, practice or policy of any Employer.

Section 6.4.    Increases in Compensation, Stock Option Grants and Restricted Stock Units.  After a Covered Employee’s Termination Notice Date, he or she shall not be entitled to any increases in compensation, including, without limitation, regularly scheduled merit increases in Weekly Base Pay or grants of stock options or restricted stock units.
Section 6.5.    Limitations on Severance.  To the extent that any federal, state or local law, including, without limitation, the Worker Adjustment and Retraining Notification Act and so-called “plant closing” laws, requires an Employer or any Related Entity to give advance notice or make a payment of any kind to a Covered Employee because of that Covered Employee’s involuntary termination due to layoff, reduction in force, plant or facility closing, sale of business, change of control, or any other similar event or reason, the Severance Pay provided under this Plan may be reduced or eliminated, as the case may be, by the amount of wages, benefits, or voluntary and unconditional payments paid in lieu of notice.  The Severance Benefits provided under this Plan (together with the wages, benefits, or other payments described in this Section that reduce or eliminate the Severance Pay) are intended to satisfy any and all statutory obligations that may arise out of a Covered Employee’s Covered Termination.

ARTICLE VII.
Discontinuance or Repayment of Benefits Upon Re-Employment or For Cause

Section 7.1.    Discontinuance or Repayment upon Re-Employment.  If a Qualifying Employee is subsequently re-employed by an Employer or any Related Entity before or after all of the Qualifying Employee’s Severance Benefits under this Plan have been paid or provided, Schedule G shall set forth the Qualifying Employee’s rights to receive or retain Severance Benefits under this Plan, unless the Plan Administrator, on behalf of the Employers, agrees otherwise in writing.
Section 7.2.    Discontinuance or Repayment for Cause.  Notwithstanding any other provision of the Plan, if the Plan Administrator determines at any time that a Qualifying Employee committed any act or omission that would constitute Cause while he or she was employed by an Employer or any Related Entity, the Employers may (i) cease payment of any benefit otherwise payable to a Qualifying Employee under the Plan and (ii) require the Qualifying Employee to repay any and all Severance Pay, sabbatical pay and Prorated TIP previously paid to such Qualifying Employee under the terms of this Plan.  The Employers shall have the right to seek enforcement of their rights under clause (ii) above in any court of competent jurisdiction.

ARTICLE VIII.
Plan Administration

McDonald’s Corporation may appoint one or more individuals to serve as Plan Administrator for the Plan.  Currently, the McDonald’s Welfare Plan Administrative Committee serves as Plan Administrator. 
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The Plan Administrator shall have the discretionary authority to determine eligibility for Severance Benefits under the Plan and to construe the terms of the Plan, including the making of factual determinations.  Benefits under the Plan shall be paid only if the Plan Administrator decides in his or her discretion that the Claimant is entitled to such benefits.  The decisions of the Plan Administrator shall be final and conclusive with respect to all questions concerning administration of the Plan.  The Plan Administrator may delegate to other persons responsibilities for performing certain of the duties of the Plan Administrator under the terms of the Plan and may seek such expert advice as the Plan Administrator deems reasonably necessary with respect to the Plan.  The Plan Administrator shall be entitled to rely upon the information and advice furnished by such delegates and experts, unless the Plan Administrator has actual knowledge that such information and advice is inaccurate or unlawful.  Notwithstanding the foregoing, the Compensation Committee of the Board of Directors of McDonald’s Corporation shall have the final authority with respect to all Severance Benefits under the Plan for executive Officers subject to Section 16 of the Securities Exchange Act of 1934.
McDonald’s Corporation intends for the Plan to comply with the requirements of Section 409A of the Code and regulations, rulings and other guidance issued thereunder, and the Plan shall be interpreted and administered accordingly.

ARTICLE IX.
Claims Procedure

Section 9.1.    Filing a Claim.  Any individual who believes he or she is eligible for Severance Benefits under this Plan that have not been provided may submit his or her application for Severance Benefits to the Plan Administrator (or to such other person who may be designated by the Plan Administrator) in writing in such form as is provided or approved by the Plan Administrator.  A Claimant shall have no right to seek review of a denial of Severance Benefits, or to bring any action in any court to enforce a Claim, prior to filing a Claim and exhausting rights under this Article IX.
When a Claim has been filed properly, it shall be evaluated and the Claimant shall be notified of the approval or the denial of the Claim within ninety (90) days after the receipt of such Claim unless special circumstances require an extension of time for processing the Claim.  If such an extension of time for processing is required, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial ninety (90) day period, which notice shall specify the special circumstances requiring an extension and the date by which a final decision will be reached (which date shall not be later than one hundred and eighty (180) days after the date on which the Claim was filed).  A Claimant shall be given a written notice in which the Claimant shall be advised as to whether the Claim is granted or denied, in whole or in part.  If a Claim is denied, in whole or in part, the notice shall contain (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 necessary to perfect the Claim and an explanation of why such material or information is necessary, and (d) the Claimant’s right to seek review of the denial.
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Section 9.2.    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 Plan Administrator 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 Plan Administrator within sixty (60) days after the date on which the Claimant received written notification of the denial.  Within sixty (60) days after a request for review is received, the review shall be made and the Claimant shall be advised in writing of the decision on review, unless special circumstances require an extension of time for processing the review, in which case the Claimant shall be given a written notification within such initial sixty (60) day period specifying the reasons for the extension and when such review shall be completed (provided that such review shall be completed within one hundred and twenty (120) days after the date on which the request for review was filed).  The decision on review by the Plan Administrator shall be forwarded to the Claimant in writing and shall include specific reasons 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.

ARTICLE X.
Amendment and Termination

McDonald’s Corporation reserves the right to amend the Plan from time to time or to terminate the Plan; provided, however, that no such amendment or termination shall reduce the amount of Severance Benefits payable to any Qualifying Employee whose Termination Date has already occurred, who has signed and not revoked or rescinded a Release Agreement required by Section 6.1, and who has completed all other applicable paperwork on or before the effective date of such amendment or termination.  Notwithstanding the foregoing, the Plan Administrator may amend or modify the terms of the Plan hereunder (i) to the extent necessary or advisable to comply with or obtain the benefits or advantages under the provisions of applicable law, regulations or rulings or requirements of the Internal Revenue Service or other governmental agency or of changes in such law, regulations, rulings or requirements (including, without limitation, any amendment necessary to comply with or secure an exemption from Section 409A of the Code) or (ii) to adopt any other procedural or cosmetic amendment that does not materially change the benefits to Qualifying Employees or materially increase the cost of the benefits provided hereunder.  No person may amend this Plan in a manner that would subject any Covered Employee to taxation of his or her Severance Pay or any other Severance Benefits under Section 409A(a)(1) of the Code.

ARTICLE XI.
Miscellaneous

Section 11.1.    Qualifying Employee Information.  Each Qualifying Employee shall notify the Plan Administrator of his or her mailing address and each change of mailing address.  In addition, each Qualifying Employee shall be required to furnish the Plan Administrator with any other information and data that McDonald’s Corporation or the Plan Administrator considers necessary for the proper administration of the Plan.  The information provided by the Qualifying Employee under this provision shall be binding upon the Qualifying Employee, his or her dependents and any beneficiary for all purposes of the Plan, and McDonald’s Corporation and 
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the Plan Administrator shall be entitled to rely on any representations regarding personal facts made by a Qualifying Employee, his or her dependents or beneficiary, unless such representations are known to be false.  The receipt of Severance Benefits under the Plan by each Qualifying Employee is conditioned upon the Qualifying Employee furnishing full, true and complete data, evidence or other information and the Qualifying Employee’s timely signature of any document related to the Plan, requested by McDonald’s Corporation or the Plan Administrator.
Section 11.2.    Successors and Assigns.  The obligations of McDonald’s Corporation under the Plan shall be assumed by its successors and assigns.
Section 11.3.    Employment Rights.  The existence of the Plan shall not confer any legal or other rights upon any employee to continuation of employment.  McDonald’s Corporation and its Related Entities reserve the right to terminate any employee with or without cause at any time, notwithstanding the provisions of this Plan.
Section 11.4.    Controlling Law.  The provisions of this Plan shall be governed, construed and administered in accordance with ERISA.  To the extent that ERISA does not apply, the laws of the State of Illinois shall be controlling, other than Illinois law concerning conflicts of law.
Section 11.5.    Notices.  Any notice, request, election or other communication under this Plan shall be in writing and shall be considered given when delivered personally or mailed by first class mail properly addressed (which, in the case of a Qualifying Employee, shall include mailing to the last address provided to the Plan Administrator by such Qualifying Employee).  Notice to McDonald’s Corporation or the Plan Administrator by fax shall be acceptable notice if faxed to the number designated by McDonald’s Corporation or the Plan Administrator, as applicable, for receipt of notices under this Plan.
Section 11.6.    Interests Not Transferable.  The interest of persons entitled to Severance Benefits under the Plan are not subject to their debts or other obligations and, except as provided in Sections 5.3 and 11.2 above and Section 11.12 below, as required by federal or state garnishment orders issued to the Plan or McDonald’s Corporation or any Employer, or as may be required by ERISA, may not be voluntarily or involuntarily sold, transferred, alienated, assigned or encumbered.
Section 11.7.    Mistake of Fact or Law.  Any mistake of fact or misstatement of fact shall be corrected when it becomes known and proper adjustment made by reason thereof.  A Qualifying Employee shall be required to return any payment, or portion thereof, made by mistake of fact or law to the applicable Employer that made such payment.

Section 11.8.    Representations Contrary to the Plan.  No employee, Officer, or director of McDonald’s Corporation has the authority to alter, vary or modify the terms of the Plan or the Severance Benefits available to any Qualifying Employee except by means of a written amendment duly authorized by the Board of Directors of McDonald’s Corporation or its delegate, in accordance with the provisions of the Plan.  No verbal or written representations contrary to the terms of the Plan and any duly authorized written amendment in effect as of the 
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date such representation was made shall be binding upon the Plan, the Plan Administrator, McDonald’s Corporation or any Related Entity.
Section 11.9.    Plan Funding.  No Qualifying Employee or beneficiary thereof shall acquire by reason of the Plan any right in or title to any assets, funds, or property of McDonald’s Corporation or any Employer.  Any Severance Benefits that become payable under the Plan are unfunded obligations of the Qualifying Employee’s Employer, and shall be paid from the general assets of such Employer.  No employee, Officer, director or agent of McDonald’s Corporation or any Related Entity guarantees in any manner the payment of Severance Benefits.
Section 11.10.    Headings.  The headings in this Plan are for convenience of reference and shall not be given substantive effect.
Section 11.11.    Severability.  If any provision of this Plan is held illegal or invalid for any reason, the other provisions of this Plan shall not be affected.
Section 11.12.    Withholding.  Notwithstanding any other provision of this Plan, the Employers may withhold from any and all Severance Benefits such United States federal, state or local or foreign taxes as may be required to be withheld pursuant to any applicable law or regulation.
Section 11.13.    Indemnification.  Any individual serving as Plan Administrator without compensation, and each and every individual who is an employee of an Employer or any Related Entity to whom are delegated duties, responsibilities and authority with respect to the Plan, shall be indemnified to the fullest extent permitted by applicable law and the McDonald’s Corporation Bylaws.
Executed this 30th day of September, 2015
	
					
	 
	 
	McDONALD’S CORPORATION
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	/s/ Richard Floersch
	 
	 

	 
	 
	Richard Floersch
	 
	 

	 
	 
	Corporate Executive Vice President and Chief Human Resources Officer
	 
	 

	 
	 
	 
	 
	 

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Appendix I
McDonald’s Corporation Severance Plan
Schedule A:
Severance Benefits for
Qualifying Employees who are Officers
This Schedule sets forth the Severance Benefits under the Plan for those Qualifying Employees who are employed as Officers and who are full-time Employees or benefits-eligible part-time Employees immediately before their Termination Dates.  A Qualifying Employee under this Schedule who is a Key Employee as of his or her Termination Date, as determined under Section 5.2, shall be subject to the six month delay in payment of Severance Pay and sabbatical pay described in Section 5.2 in order to comply with Internal Revenue Code Section 409A.
Weeks of Severance:  Each Qualifying Employee covered by this Schedule shall be credited with two (2) Weeks of Severance for each Year of Service with a minimum of twenty six (26) Weeks of Severance and a maximum of fifty-two (52) Weeks of Severance.
Severance Pay:  Each Qualifying Employee shall receive Severance Pay in a lump sum in an amount equal to his or her Weekly Base Pay multiplied by his or her Weeks of Severance.
Medical/Dental Coverage:  The Employers shall make the payments for COBRA Premiums provided for in Section 4.2 of the Plan during the Qualifying Employee’s Severance Period.
Transitional Assistance:  Each Qualifying Employee covered by this Schedule shall receive transitional assistance under a senior executive program, at the expense of the Employers, for a period of not more than 12 months, beginning not later than 60 days after the Qualifying Employee’s Termination Date.
Prorated TIP/CPUP:  Each Qualifying Employee who is TIP-Eligible may receive a Prorated TIP, if any, computed in accordance with Section 4.6 of the Plan and each Qualifying Employee who is eligible for a long-term cash bonus under CPUP may receive a Prorated CPUP, if any, computed in accordance with Section 4.8 of the Plan.
Company Vehicle:  Section 4.7 of the Plan shall apply to each Qualifying Employee who has a company-provided vehicle.
Other Severance Benefits:  A Qualifying Employee shall also receive, if otherwise eligible, the Severance Benefits provided for in Section 4.4 (equity awards) and Section 4.5 (sabbatical).

McDonald’s Corporation Severance Plan
Schedule B:
Severance Benefits for
Qualifying Employees in the Direction and Senior Direction Compensation Bands
This Schedule sets forth the Severance Benefits under the Plan for those Qualifying Employees who are in the Direction or Senior Direction Compensation Band of the Employers and who are full-time Employees or benefits-eligible part-time Employees immediately before their Termination Dates.
Weeks of Severance:  Each Qualifying Employee covered by this Schedule shall be credited with two (2) Weeks of Severance for each Year of Service with a minimum of sixteen (16) Weeks of Severance and a maximum of thirty-eight (38) Weeks of Severance.
Severance Pay:  Each Qualifying Employee shall receive Severance Pay in a lump sum in an amount equal to his or her Weekly Base Pay multiplied by his or her Weeks of Severance.
Medical/Dental Coverage:  The Employers shall make the payments for COBRA Premiums provided for in Section 4.2 of the Plan during the Qualifying Employee’s Severance Period.
Transitional Assistance:  Each Qualifying Employee covered by this Schedule shall receive transitional assistance under an executive program, at the expense of the Employers, for a period of not more than six months, beginning not later than 60 days after the Qualifying Employee’s Termination Date.
Prorated TIP:  Each Qualifying Employee who is TIP-Eligible may receive a Prorated TIP, if any, computed in accordance with Section 4.6 of the Plan.
Company Vehicle:  Section 4.7 of the Plan shall apply to each Qualifying Employee who has a company-provided vehicle.
Other Severance Benefits:  A Qualifying Employee shall also receive, if otherwise eligible, the Severance Benefits provided for in Section 4.4 (equity awards) and Section 4.5 (sabbatical).

McDonald’s Corporation Severance Plan
Schedule C:
Severance Benefits for Qualifying Employees
in the Specialist, Supervisory/Consulting or Management/Advisory Bands
This Schedule sets forth the Severance Benefits under the Plan for those Qualifying Employees who are in the Specialist, Supervisory/Consulting or Management/Advisory Band but who are not Officers or directors of McDonald’s Corporation or directors of any other Employer, and who are full-time Employees or benefits-eligible part-time Employees immediately before their Termination Dates.
Weeks of Severance:  Each Qualifying Employee covered by this Schedule shall be credited with two (2) Weeks of Severance for each Year of Service with a minimum of twelve (12) Weeks of Severance and a maximum of twenty-six (26) Weeks of Severance.
Severance Pay:  Each Qualifying Employee shall receive Severance Pay in a lump sum in an amount equal to his or her Weekly Base Pay multiplied by his or her Weeks of Severance.
Medical/Dental Coverage:  The Employers shall make the payments for COBRA Premiums provided for in Section 4.2 of the Plan during the Qualifying Employee’s Severance Period.
Transitional Assistance:  Each Qualifying Employee covered by this Schedule C shall receive transitional assistance, at the expense of the Employers, for a period of not more than six months, beginning not later than 60 days after the Qualifying Employee’s Termination Date.
Prorated TIP:  Each Qualifying Employee who is TIP-Eligible may receive a Prorated TIP, if any, computed in accordance with Section 4.6 of the Plan.
Company Vehicle:  Section 4.7 of the Plan shall apply to each Qualifying Employee who has a company-provided vehicle.
Other Severance Benefits:  A Qualifying Employee shall also receive, if otherwise eligible, the Severance Benefits provided for in Section 4.4 (equity awards) and Section 4.5 (sabbatical).

McDonald’s Corporation Severance Plan
Schedule D:
Severance Benefits for
Qualifying Employees in the Associate or Coordination Compensation Bands
This Schedule sets forth the Severance Benefits under the Plan for those Qualifying Employees who are Employees in the Associate or Coordination Compensation Band, and who are full-time Employees or benefits-eligible part-time Employees immediately before their Termination Dates.
Weeks of Severance:  Each Qualifying Employee covered by this Schedule shall be credited with two (2) Weeks of Severance for each Year of Service with a minimum of eight (8) Weeks of Severance and a maximum of twenty (20) Weeks of Severance.
Severance Pay:  Each Qualifying Employee shall receive Severance Pay in a lump sum in an amount equal to his or her Weekly Base Pay multiplied by his or her Weeks of Severance.
Medical/Dental Coverage:  The Employers shall make the payments for COBRA Premiums provided for in Section 4.2 of the Plan during the Qualifying Employee’s Severance Period.
Transitional Assistance:  Each Qualifying Employee covered by this schedule shall receive three months transitional assistance, beginning not later than 60 days after the Qualifying Employee’s Termination Date.
Prorated TIP:  Each Qualifying Employee who is TIP-Eligible may receive a Prorated TIP, if any, computed in accordance with Section 4.6 of the Plan.
Other Severance Benefits:  A Qualifying Employee shall also receive, if otherwise eligible, the Severance Benefits provided for in Section 4.4 (equity awards) and Section 4.5 (sabbatical).

McDonald’s Corporation Severance Plan
Schedule E:
Severance Benefits for
Qualifying Employees becoming Restaurant Operators
This Schedule sets forth the Severance Benefits under the Plan for those Qualifying Employees who are full-time Employees or benefits-eligible part-time Employees immediately before their Termination Dates and who become restaurant operators (either as owner/operators or in a joint venture with an Employer). 
Weeks of Severance:  Each Qualifying Employee covered by this Schedule shall be credited with the lesser of sixteen (16) Weeks of Severance or the number of Weeks of Severance equal to the number of weeks from the Qualifying Employee’s Termination Date until the Qualifying Employee is projected to begin operation of a restaurant franchised by McDonald’s Corporation as determined by the Plan Administrator in his sole discretion.  
Severance Pay:  Each Qualifying Employee shall receive Severance Pay in a lump sum in an amount equal to his or her Weekly Base Pay multiplied by his or her Weeks of Severance.
Medical/Dental Coverage:  The Employers shall make the payments for COBRA Premiums provided for in Section 4.2 of the Plan during the Qualifying Employee’s Severance Period.
Prorated TIP:  A Qualifying Employee who is TIP-Eligible may receive a Prorated TIP, if any, computed in accordance with Section 4.6 of the Plan.
Company Vehicle:  Section 4.7 of the Plan shall apply to each Qualifying Employee who has a company-provided vehicle.
Other Severance Benefits:  A Qualifying Employee who is covered by this Schedule E shall also receive, if otherwise eligible, the Severance Benefits provided for in Sections 4.4 (equity awards) and 4.5 (sabbatical) of the Plan, but shall not receive the Severance Benefits provided for in Section 4.3 (Transitional Assistance) of the Plan.

McDonald’s Corporation Severance Plan
Schedule F:
Severance Benefits for
Qualifying Outsourced Employees
This Schedule sets forth the Severance Benefits under the Plan for each Qualifying Employee (1) who is a full-time Employee or a benefits-eligible part-time Employee before his or her Termination Date, (2) whose Covered Termination occurs as a result of the elimination of his or her job because the functional area is outsourced, and (3) who is offered employment with the entity that will be providing services on an outsourced basis to McDonald’s Corporation or a Related Entity in a position with a level of responsibility comparable to his or her job that was eliminated (as determined by the Plan Administrator in his or her sole discretion), at a rate of Weekly Base Pay not less than 80% of his or her rate of Weekly Base Pay immediately before the Termination Date, and located not more than 25 miles from the location of his or her eliminated job, regardless of whether the Qualifying Employee accepts or rejects such offer (referred to as a  “Qualifying Outsourced Employee”).
Weeks of Severance:  Each Qualifying Employee covered by this Schedule shall be credited with four (4) Weeks of Severance.
Severance Pay:  Each Qualifying Employee shall receive Severance Pay in a lump sum in an amount equal to his or her Weekly Base Pay multiplied by his or her Weeks of Severance.
Medical/Dental Coverage:  The Employers shall make the payments for COBRA Premiums provided for in Section 4.2 of the Plan during the Qualifying Employee’s Severance Period.
Prorated TIP:  A Qualifying Outsourced Employee who is TIP-Eligible may receive a Prorated TIP, if any, computed in accordance with Section 4.6 of the Plan.
Company Vehicle:  Section 4.7 of the Plan shall apply to each Qualifying Outsourced Employee who has a company-provided vehicle.
Other Severance Benefits:  A Qualifying Outsourced Employee shall also receive, if otherwise eligible, the Severance Benefits provided for in Section 4.4 (equity awards) and Section 4.5 (sabbatical), but shall not receive the Severance Benefits provided for in Section 4.3 (Transitional Assistance) of the Plan.

McDonald’s Corporation Severance Plan
Schedule G:
Severance Benefits for
Certain Rehired Qualifying Employees
This Schedule sets forth the Severance Benefits under the Plan for each Qualifying Employee who was a full-time Employee or a benefits-eligible part-time Employee immediately before his or her Termination Date, and who commences work with McDonald’s Corporation or any Related Entity after his or her Termination Date.
Severance Pay, Sabbatical Pay and Prorated TIP:  A rehired Qualifying Employee shall be entitled to receive or retain his or her (1) sabbatical pay (if any) under Section 4.5, and (2) Prorated TIP (if any) under Section 4.6.  A rehired Qualifying Employee shall be entitled to receive or retain the portion of his or her Severance Pay that is attributable to the Weeks of Severance (including any fraction of a Week of Severance) from the Termination Date through the date the Qualifying Employee is rehired and he or she shall repay the portion, if any, of the Severance Pay previously received by the Qualifying Employee that is attributable to the Weeks of Severance (including any fraction of a Week of Severance) on or after the date the Qualifying Employee is rehired.  The Employers shall have the right to seek enforcement of their right to repayment in any court of competent jurisdiction.
Medical/Dental Coverage:  The Employer’s payments for COBRA Premiums provided for in Section 4.2 of the Plan shall end upon the Qualifying Employee’s reemployment.
Transitional Assistance:  Any transitional assistance under Section 4.3 shall cease upon the Qualifying Employee’s reemployment.
Company Vehicle:  A rehired Qualifying Employee may keep any company-provided vehicle that he or she purchased or was in the process of purchasing under Section 4.7 of the Plan.
Equity Awards:  A rehired Qualifying Employee shall be treated as a new employee for stock option and restricted stock unit purposes.

McDonald’s Corporation Severance Plan
Schedule H:
Severance Benefits for Certain Part-Time Employees
This Schedule sets forth the Severance Benefits under the Plan for each Qualifying Employee who is a part-time Employee who is not benefits-eligible before his or her Termination Date.
A Qualifying Employee who is a part-time Employee and who is not benefits eligible shall receive Severance Pay in an amount equal to his or her Weekly Base Pay multiplied by his or her Weeks of Severance determined in accordance with his or her compensation band as set forth in the chart below, as applicable, but shall not receive any other Severance Benefits under the Plan.

	
				
	Compensation Band
	Weeks of Severance

	Weeks/Years of Service
	Minimum
	Maximum

	Associate and Coordination
	2 weeks
	8 weeks
	20 weeks

	Specialist, Supv/Consulting & Mgmt/Advisory
	2 weeks
	12 weeks
	26 weeks

	Direction and Sr. Direction
	2 weeks
	16 weeks
	38 weeks

	Leadership and above
	2 weeks
	26 weeks
	52 weeks

McDonald’s Corporation Severance Plan
Schedule I:
Severance Benefits for
Qualifying McOpCo Restaurant Management Employees and Shared Restaurant Support Employees

This Schedule sets forth the Severance Benefits under the Plan for each Qualifying Employee (1) who is salaried Restaurant Management Employee  or a full time salaried or hourly Shared Restaurant Support Employee (as determined by the Plan Administrator) before his or her Termination Date, (2) whose Covered Termination occurs as a result of the elimination of his or her job because of the sale of one or more restaurants, and (3) who is either (i) not offered employment with the purchasing Operator of the restaurant or (ii) offered employment (x) with a level of responsibility not comparable to his or her job that was eliminated (as determined by the Plan Administrator in his or her sole discretion), (y) at a rate of monthly Base Pay less than 80% of his or her rate of monthly Base Pay immediately before the Termination Date, or (z) at a location more than 35 miles from the location of his or her eliminated job.
Weeks of Severance:  Each Qualifying Employee covered by this Schedule shall be credited with four (4) Weeks of Severance.
Severance Pay:  Each Qualifying Employee shall receive Severance Pay in a lump sum in an amount equal to his or her Weekly Base Pay multiplied by his or her Weeks of Severance.
Medical/Dental Coverage:  The Employers shall make the payments for COBRA Premiums provided for in Section 4.2 of the Plan during the Qualifying Employee’s Severance Period (4 weeks).
Company Vehicle:  Section 4.7 of the Plan shall apply to each Qualifying Employee who has a company-provided vehicle.
Other Severance Benefits:  A Qualifying Employee shall also receive, if otherwise eligible, the Severance Benefits provided for in Section 4.4 (equity awards) and Section 4.5 (sabbatical), but shall not receive the Severance Benefits provided for in Section 4.3 (Transitional Assistance) of the Plan.

McDonald’s Corporation Severance Plan
Schedule J:
Severance Benefits for
Employees of Restaurant Application Development International

This schedule modified the Severance Benefits under the Plan for each Qualifying Employee who is, immediately before his or her Termination Date, an employee of Restaurant Application Development International (RDI) and whose Termination Date occurs on or after October 1, 2012.

Employees of RDI will receive the following Severance Benefits under the Plan.  No other benefits will be paid for employees of RDI.   The amount of Severance will depend on how long the employee worked for RDI, including time worked for the predecessor company YGOMI LLC (prior to May 1, 2010) or for RTS (between May 1, 2010 and October 1, 2012).   Each RDI employee will receive Weeks of Severance times the number of continuous years of service with each partial year of service rounded up to the next whole year.

	
			
	Position
	Weeks of Severance

	Minimum
	Maximum

	Officer
	26 weeks
	52 weeks

	Director
	13 weeks
	26 weeks

	Manager
	6 weeks
	26 weeks

	All Others
	2 weeks
	13 weeks

Notwithstanding the foregoing, in no event will aggregate severance payments to an RDI employee under the Plan exceed two times the lesser of: (1) the RDI employee’s annualized compensation based upon his or her annual rate of pay for the taxable year preceding the taxable year in which the employee’s Termination Date occurs (adjusted for any increase during that year that was expected to continue indefinitely if the employee had not been terminated ), or (2) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Internal Revenue Code of 1986, as amended (the “Code”) for the year in which the RDI employee’s Termination Date occurs (in 2015 this limit is $265,000).

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