Document:

Excess Benefit and Deferred Bonus Plan

 Exhibit (10)(b) 

McDONALD’S EXCESS BENEFIT 

AND DEFERRED BONUS PLAN 

Section 1 

Introduction 
 1.1
The Plan. McDonald’s Corporation (the “Company”) hereby amends and restates the McDonald’s Excess Benefit and Deferred Bonus Plan, as set forth herein, effective January 1, 2011 (the “Plan”). The Plan was
initially established effective January 1, 2005 as a successor plan to the McDonald’s Corporation Supplemental Profit Sharing and Savings Plan (the “Supplemental Plan”). The Plan, as initially established, has been amended and
restated effective as of January 1, 2005 and as of January 1, 2008. The Supplemental Plan was amended in response to the enactment of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), to suspend
deferrals into that plan for years after 2004. 
 1.2 Applicability. The provisions of this Plan, as herein amended and restated, shall
apply to amounts credited to Participants’ Accounts on or after January 1, 2011; provided, however, that the terms of the Plan in effect from January 1, 2005 to December 31, 2007 shall apply to distributions from the Accounts of
any Participant who had a separation from service (as defined under the terms of the Plan in effect at from January 1, 2005 to December 31, 2007) on or after January 1, 2005 and prior to January 1, 2008. 

1.3 Purposes and Features of Plan. 
  

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

  

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

1.4 Administration. The Plan shall be administered by a committee of three officers of the Company (the “Committee”), the members of
which shall be appointed from time to time by the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”). The Committee shall have the powers set forth in the Plan and the power to interpret its
provisions. Any decisions of the Committee shall be final and binding on all persons with regard to the Plan. The Company and the Adopting Subsidiaries shall furnish the Committee or its delegate such evidence, data and information as the Committee
or its delegate may reasonably request in the discharge of its duties. Participants and Beneficiaries shall also furnish the Committee or its delegate such evidence, data and information (including, without limitation, current address, phone
numbers, Social Security numbers, death certificates, etc.) as the Committee or its delegate may reasonably request in the discharge of its duties. 

1.5 Compliance with Section 409A. The Plan is intended to comply with the requirements of Section 409A of the Code and final
regulations, rulings and other applicable guidance issued thereunder (collectively, “Section 409A”), and shall be interpreted and administered accordingly. 

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

Section 2 

Deferred Bonus Feature: Participation and Deferral Elections 

2.1 Eligibility and Participation. Subject to the conditions and limitations of the Plan, an individual shall be eligible to participate in the
Deferred Bonus Feature of the Plan for a calendar year (a “Deferred Bonus Eligible Employee”) if, on the applicable Election Due Date (as defined in Section 4.1) for such year, the individual is an employee of the Company who is in
the Direction Compensation Band of the Company or above (or an employee of an Adopting Subsidiary who is in a comparable compensation band). Any Deferred Bonus Eligible Employee who, in accordance with Sections 2.3 and 4 below, makes an Annual Bonus
Deferral Election (as described in Section 2.2(a) below) or a Long-Term Bonus Deferral Election (as described in Section 2.2(b) below) shall become a Participant and shall remain a Participant until the entire balance of the
Participant’s Account is distributed. 
 2.2 Deferral Elections. Subject to Sections 2.3 and 4 below: 

 

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

  

	 	(b)	Any Deferred Bonus Eligible Employee may make an election (a “Long-Term Bonus Deferral Election”) to defer receipt of all or any portion (in 1% increments) of
the long-term cash performance-based compensation (“Long-Term Cash Bonus”) that he or she may receive for a particular performance cycle under the McDonald’s Cash Performance Unit Plan, any successor long-term cash bonus plan of the
Company, or any long-term cash bonus plan of an Adopting Subsidiary, in which the Deferred Bonus Eligible Employee participates (collectively, the “Long-Term Cash Bonus Plan”). 

 

	 	(c)	No other forms of compensation (including, but not limited to, sign on bonuses, officers’ discretionary bonuses, severance or exit bonuses or restricted stock
units) paid by the Company or any Adopting Subsidiary and no compensation paid by any affiliate of the Company that is not an Adopting Subsidiary may be deferred under the Deferred Bonus Feature of the Plan. 

The amounts deferred by a Participant pursuant to this Section 2.2 shall be credited to the Participant’s Account in accordance
with Section 5.1. 
 2.3 Rules for Bonus Deferral Elections. Bonus Deferral Elections shall be made in accordance with
Section 4 below. Participants shall make separate Annual Bonus Deferral Elections and Long-Term Bonus Deferral Elections. The first Annual Bonuses that may be deferred pursuant to an Annual Bonus Deferral Election made under Section 2.2(a)
of this amendment and restatement of the Plan shall be the Annual Bonus for 2010 that, in the absence of a Bonus Deferral Election, would be paid in the first quarter of 2011. The first Long-Term Cash Bonus payable under the Long-Term Cash Bonus
Plan that may be deferred pursuant to a Long-Term Bonus Deferral Election made under Section 2.2(b) shall be the Long-Term Cash Bonus payable with respect to the 2010-2012 performance cycle. 

Notwithstanding any provision herein to the contrary, an Annual Bonus may be deferred pursuant to an Annual Bonus Deferral Election only
if and to the extent such Annual Bonus qualifies as “performance-based compensation” within the meaning of Treasury Regulation Section 1.409A-1(e), unless such Annual Bonus is payable to a Participant who participates in the
McDonald’s Corporation Executive Retention Replacement Plan (the “ERRP”). 

 Section 3 

Excess 401(k) Contributions Feature of Plan: 

Participation and Deferral Elections 

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

	 	(a)	the individual (i) is an employee of the Company in the Direction Compensation Band of the Company or above (or an employee of an Adopting Subsidiary in a
comparable compensation band) on the Election Due Date for such Specified Year, and (ii) is eligible to participate in the employer matching contribution feature under the Profit Sharing Plan of January 1 of the Specified Year;

  

	 	(b)	the individual has Annualized Compensation (as defined below) determined as of a date within the calendar year preceding the Specified Year as determined by the
Committee (the “Compensation Determination Date”) in an amount that exceeds the applicable dollar amount in effect under Code Section 414(q)(1)(B)(i) for the year preceding the Specified Year; and 

 

	 	(c)	the individual has Compensation (as defined in Section 3.2(c)) during the Specified Year. 

An employee’s “Annualized Compensation” shall equal the sum of the employee’s annual base salary as of the
Compensation Determination Date plus the employee’s Annual Bonus received under an Annual Bonus Plan in the year that includes the Compensation Determination Date (in each case determined without regard to the employee’s elective deferrals
under this Plan, the Profit Sharing Plan or otherwise). 
 Any Excess 401(k) Contributions Eligible Employee who makes an Excess
401(k) Contributions Deferral Election in accordance with the requirements of Sections 3.3 and 4 below and whose Account is thereafter credited with amounts pursuant to Section 3.2 below shall become a Participant and shall remain a Participant
until the entire balance of the Participant’s Account is distributed. 
 3.2 Benefits. 

 

	 	(a)	Each Excess 401(k) Contributions Eligible Employee may make an election (an “Excess 401(k) Contributions Deferral Election”) for a Specified Year to defer
receipt of the percentage (in 1% increments) of his or her Compensation (as defined in Section 3.2(c) below) specified in his or her Excess 401(k) Contributions Deferral Election. An Excess 401(k) Contributions Eligible Employee’s Excess
401(k) Contributions Deferral Election will be treated both as an Annual Deferral Election (as defined in Section 4.1(a)) under this Plan and as a 401(k) election under the Profit Sharing Plan. The amounts deferred pursuant to an Excess 401(k)
Contributions Deferral Election are referred to as “Elective Deferrals.” A Participant’s Elective Deferrals for a Specified Year will first be contributed to the Profit Sharing Plan as 401(k) contributions in accordance with the terms
of the Profit Sharing Plan until the amounts so contributed reach the Limits (as defined in Section 3.2(d) below) for the Specified Year. The Participant’s Elective Deferrals in excess of the Limits for such Specified Year shall be
credited to his or her Account pursuant to Section 5.1. 

	 	(b)	The Account of each Excess 401(k) Contributions Eligible Employee who makes an Excess 401(k) Contributions Deferral Election for a Specified Year shall also be credited
with an amount equal to the excess of (i) the amount of matching employer contributions that would be allocated to the Participant’s accounts under the Profit Sharing Plan for the Specified Year if the entire amount of his or her Elective
Deferrals for the Specified Year had been contributed to the Profit Sharing Plan and the Limits did not apply, over (ii) the amount of matching employer contributions actually allocated to his or her accounts under the Profit Sharing Plan for
the Specified Year. Notwithstanding the foregoing, if a Participant ceases to be an eligible employee under the Profit Sharing Plan prior to the first day of a Specified Year, the matching employer contributions for such Specified Year will be
determined with regard to “Mandatory 401(k) Match” but without regard to the “Discretionary 401(k) Match” (as those terms are defined is the Profit Sharing Plan) for such Specified Year. 

 

	 	(c)	For purposes of this Section 3, “Compensation” means compensation as defined in the Profit Sharing Plan, but determined without regard to the limitations
imposed under Section 401(a)(17) of the Code; provided, however, that if an Excess 401(k) Contributions Eligible Employee has made an Annual Bonus Deferral Election under Section 2 for a Specified Year, (i) for purposes of determining
the amount of a Participant’s Elective Deferrals for the Specified Year, his or her Compensation will not include the portion of any Annual Bonus paid during the Specified Year that was deferred pursuant to his or her Annual Bonus Deferral
Election for such Specified Year; and (ii) for purposes of determining the amount of the Participant’s matching employer contributions described in Section 3.2(b)(i) for the Specified Year, the Participant’s Compensation will be
determined without regard to his or her Annual Bonus Deferral Election for such Specified Year. In addition, for purposes of determining the amount of a Participant’s Elective Deferrals for a Specified Year, his or her Compensation for such
Specified Year will include the portion, if any, of his or her Annual Bonus paid during the Specified Year even if the Participant has ceased to be an eligible employee under the Profit Sharing Plan prior to the payment of such Annual Bonus.

  

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

3.3 Rules for Excess 401(k) Contributions Deferral Election. An Excess 401(k) Contributions Deferral Eligible Employee shall receive the benefits
provided for in Section 3.2 for a Specified Year only if he or she makes an Excess 401(k) Contributions Deferral Election in accordance with Section 4 below to participate in the Excess 401(k) Contributions Feature of the Plan and to make
401(k) contributions under the Profit Sharing Plan for the Specified Year. The first Specified Year under this restatement of the Plan shall be the 2011 calendar year. 

Section 4 

Rules for Deferral Elections 

4.1 Timing for Deferral Elections. For purposes of this Section, the term “Deferral Election” shall refer to Annual Bonus Deferral
Elections, Long-Term Bonus Deferral Elections and Excess 401(k) Contributions Deferral Elections, collectively. 
  

	 	(a)	 Annual Bonus Deferral Elections and Excess 401(k) Contributions Deferral Elections. All Annual Bonus Deferral Elections and Excess 401(k)
Contributions Deferral Elections (collectively the “Annual Deferral Elections”) for a specified year must be returned to the Committee no later than the date specified for such year by the Committee (the “Election Due

	 	
Date”), but in no event later than: (i) in the case of an Excess 401(k) Contributions Deferral Election, June 30 of the calendar year prior to the Specified Year and (ii) in
the case of an Annual Bonus, the date that is six months prior to the last day of the performance period for which the Annual Bonus is earned. 

  

	 	(b)	Special Election Due Date for Executive Retention Replacement Plan Participants. Notwithstanding the provisions of Section 4.1(a) of the Plan to the
contrary, if a Participant participates in the ERRP, the Election Due Date shall be no later than (i) in the case of an Excess 401(k) Contributions Deferral Election, December 31 of the second calendar year preceding the Specified Year and
(ii) in the case of an Annual Bonus (including an Annual Bonus that fails to qualify as performance-based compensation within the meaning of Treasury Regulation Section 1.409A-1(e)), December 31 of the year immediately preceding
the year in which the performance period for which the Annual Bonus is earned begins. 

  

	 	(c)	Long-Term Bonus Deferral Elections. The Long-Term Bonus Deferral Election for the Long-Term Cash Bonus payable with respect to any performance cycle must be
returned to the Committee no later than the Election Due Date specified by the Committee with respect to such performance cycle, but in no event later than December 31 of the calendar year preceding the calendar year in which the performance
cycle for such Long-Term Cash Bonus begins. 

 Except as otherwise specifically provided in this Plan, each
Deferral Election shall become irrevocable by the Participant or the Company after the Election Due Date applicable to such Deferral Election. Each Annual Deferral Election shall apply only to the year for which such Annual Deferral Election was
made. Each Long-Term Bonus Deferral Election shall apply only to the Long-Term Cash Bonus with respect to which such Long-Term Bonus Deferral Election was made. 

4.2 Payment Form Election. At the time a Participant makes a Deferral Election, the Participant must also elect to receive distributions of the
amounts credited to his or her Account pursuant to such Deferral Election (and any investment earnings credited thereto) either in the form of a single lump sum or in installments. A separate distribution form election will be made with respect to
each Deferral Election. Notwithstanding the foregoing, all amounts deferred pursuant to any Deferral Election made on or before December 31, 2004 (and the investment earnings credited thereto) will be distributed in a single lump sum. If a
Participant fails to elect a form of distribution in a Deferral Election, all amounts credited to the Participant’s Account pursuant to such Deferral Election will be distributed in a single lump sum. 

The first time that a Participant elects to have any portion of the amounts credited to his or her Account under this Plan distributed in
the form of installments, the Participant must also elect the frequency of the installment payments (i.e., monthly, quarterly or annual) and the duration of the installment payments (with a minimum of 2 years and a maximum of 15 years).
Except as provided in Section 6.6, once a Participant elects the frequency and duration of installment payments, such election shall be irrevocable and will apply to all installments payable to the Participant under this Plan. 

Except as provided in Section 6.1 or 6.2, a payment form election made pursuant to this Section 4.2 with respect to the amounts
credited to a Participant’s Account deferred pursuant to a Deferral Election shall be irrevocable. 

 Section 5 

Accounts 
 5.1
Accounts. 
  

	 	(a)	A bookkeeping account shall be established in each Participant’s name (an “Account”). The Account of each individual who is a Participant in both the
Deferred Bonus Feature and the Excess 401(k) Contributions Feature of the Plan shall be divided into two subaccounts, one representing the amounts credited to the Participant’s Account pursuant to Section 2 above of the Plan, and the other
representing the amounts credited to the Participant’s Account pursuant to Section 3 above, in each case, as adjusted pursuant to Section 5.2 below and as a result of distributions from the Account. The Participant’s Accounts
shall be further subdivided into (i) a lump sum subaccount to which shall be credited amounts that the Participant has elected to receive in the form of a single lump sum payment when the Account is distributed, and (ii) an installment
subaccount to which shall be credited amounts that the Participant has elected to receive in the form of installments when the Account is distributed. 

  

	 	(b)	The Participants’ Accounts may be further subdivided as the Committee may from time to time determine to be necessary or appropriate, including without limitation,
to reflect different sources of credits to the Accounts and different deemed investments thereof and to distinguish between amounts deferred by a Participant hereunder with respect to periods of employment prior to his or her separation from service
within the meaning of Treasury Regulation Section 1.409A-1(h) (a “Separation from Service”) and amounts deferred after such Participant resumes active employment with the Company or an Adopting Subsidiary. 

 

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

 5.2 Investment Elections and
Earnings Credits. 
  

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

 

	 	(b)	As of January 1, 2008, the available investment choices under the Plan are: 

 

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

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

  

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

  

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

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

Section 6 

Payment of Benefits 

6.1 Time and Method of Payment. The distribution of the Participant’s Account balance shall be paid or commence to be paid as soon as
practicable on or after the Participant’s Distribution Commencement Date. A Participant’s “Distribution Commencement Date” is the first business day of the seventh month following the month in which the Participant has a
Separation from Service. The lump sum subaccount of a Participant’s Account will be distributed in a single lump sum as soon as reasonably practicable (but not more than 90 days) after the Participant’s Distribution Commencement Date and
the installment subaccount of the Participant’s Account will commence to be distributed in installments at the frequency and over the duration elected by the Participant in the first Deferral Election in which he elected installments. The
installment payments will commence as soon as reasonably practicable (but not more than 90 days) after the Participant’s Distribution Commencement Date. 

If any amount is credited to a Participant’s Account after his or her Distribution Commencement Date with respect to services
performed prior to the Participant’s Separation from Service, the portion of such amount, if any, that is credited to the Participant’s lump sum subaccount will be distributed to the Participant immediately after such amount is credited to
his lump sum subaccount, and the portion of such amount credited to the Participant’s installment subaccount will be distributed to the Participant over the remaining installment period. 

Notwithstanding any election made by a Participant pursuant to Section 4.2, if a Participant dies before receiving his or her entire
Account balance, the Participant’s designated beneficiary or beneficiaries will receive the Participant’s entire remaining Account balance in a single lump sum as soon as reasonably practicable (but not more than 90 days) after the later
of (i) the Participant’s Distribution Commencement Date, or (ii) the first day of the month following the date of the Participant’s death. 

6.2 Small Balance Rule. Notwithstanding any election made by a Participant pursuant to Section 4.2, if the balance in a Participant’s
Account as of the Participant’s Separation from Service is less than $50,000, then such Participant’s Account shall be paid in a single lump sum as soon as administratively practicable on or after the Participant’s Distribution
Commencement Date. 
 6.3 Medium of Payment. All payments shall be made in cash. 

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

 6.5 Beneficiary. 
  

	 	(a)	A Participant shall have the right to name a beneficiary or beneficiaries who shall receive the balance of a Participant’s Account in the event of the
Participant’s death prior to the payment of his or her entire Account (a “Beneficiary Designation”). A beneficiary may be an individual, a trust or an entity that is tax-exempt under Code Section 501(c)(3). If a Participant does
not name a beneficiary under this Plan or if the Participant survives all of his or her named beneficiaries (including contingent beneficiaries), the Participant’s Account shall be paid to the beneficiary or beneficiaries designated by the
Participant to receive distributions under the Supplemental Plan (if any) and if the Participant does not have a valid beneficiary designation in effect under the Supplemental Plan as of the date of his or her death, the Participant’s Account
will be distributed to his or her estate. A Participant may change or revoke an existing Beneficiary Designation by filing another Beneficiary Designation with the Committee. The latest Beneficiary Designation received by the Committee shall be
controlling. 

  

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

  

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

 6.6 Section 409A Transition Elections. Pursuant to the transition relief granted under
Section 409A of the Internal Revenue Code, each Participant who is an employee of Company or an Adopting Subsidiary may make a one-time irrevocable election (a “Section 409A Transition Election”) to request a lump sum distribution of
the Participant’s Account in accordance with paragraph (a) below and/or to change the duration and/or frequency of installment payments in accordance with paragraph (b) below. A Participant’s Section 409A Transition Election
must be made no later than November 14, 2008 or such later date designated by the Company provided that such date shall be no later than December 1, 2008 (the “Section 409A Transition Election Date”). If a Participant makes a
Section 409A Transition Election on or after the date on which such Participant has a Separation from Service, his or her Section 409A Transition Election shall be null and void and distribution of the Participant’s Account will be
made in accordance the terms of the Plan without regard to this Section 6.6. A Participant’s Section 409A Transition Election will be subject to the following terms and conditions: 

 

	 	(a)	Lump Sum Payment Election. A Participant who is eligible to make a Section 409A Transition Election may elect under this paragraph (a) to receive a
distribution of all amounts credited to his or her Account under this Plan as of December 31, 2008 (as adjusted for investment earnings, gains and losses through the date of distribution) in a single lump sum payment on January 8, 2009. A
Section 409A Transition Election made under this paragraph (a) shall not apply to amounts credited to the Participant’s Account after December 31, 2008 and shall not affect the Participant’s continued participation in the
Plan. Except as provided in paragraph (b) below, all amounts credited to the Participant’s Account under the Plan on or after January 1, 2009 shall be distributed in accordance with the terms of the Plan without regard to this
Section 6.6. 

  

	 	(b)	 Change in Installment Payment Period. A Participant who is eligible to make a Section 409A Transition Election may elect to change the
duration and/or the frequency of any installment payments previously elected by such Participant pursuant to Section 4.2. An election made under this paragraph (b) must specify the duration of installment payments (from 2 to 15

	 	
years) and the frequency of installment payments (monthly, quarterly or annual). Such an election shall replace the duration and frequency elected by the Participant when the Participant made his
or her initial installment payment election under Section 4.2 and apply to all amounts distributable to the Participant in the form of installments. Except as provided in paragraph (a), in no event shall a Section 409A Transition Election
made under this Section 6.6 cause any amounts that the Participant previously elected to receive in a lump sum to be paid in the form of installments or any amounts that the Participant previously elected to receive in the form of installments
to be paid in a lump sum. 

 If a Participant makes an election under both paragraph (a) and paragraph (b),
the election under paragraph (a) shall apply to all amounts credited to the Participant’s Account as of December 31, 2008 (as adjusted for investment earnings, gains and losses through the date of distribution) and the election under
paragraph (b) will apply to all amounts credited to the Participant’s on or after January 1, 2009 that the Participant elects to receive in form of installments pursuant to Section 4.2. 

Section 7 

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

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

 7.3 Employment Rights. Establishment of the Plan shall not be construed to give any employee or Participant the right to be retained
in the Company’s service or that of its subsidiaries and affiliates, or to any benefits not specifically provided by the Plan. 
 7.4
Interests Not Transferable. Except as to withholding of any tax under the laws of the United States or any state or locality and the provisions of Section 6.5 above, no benefit payable at any time under the Plan shall be subject in any
manner to alienation, sale, transfer, assignment, pledge, attachment, or other legal process, or encumbrance of any kind. Any attempt to alienate, sell, transfer, assign, pledge or otherwise encumber any such benefits, whether currently or
thereafter payable, shall be void. No person shall, in any manner, be liable for or subject to the debts or liabilities of any person entitled to such benefits. If any person shall attempt to, or shall alienate, sell, transfer, assign, pledge or
otherwise encumber benefits under the Plan, or if by any reason of the Participant’s bankruptcy or other event happening at any time, such benefits would devolve upon any other person or would not be enjoyed by the person entitled thereto under
the Plan, then the Company, in its discretion, may terminate the interest in any such benefits of the person entitled thereto under the Plan and hold or apply them to or for the benefit of such person entitled thereto under the Plan or such
individual’s spouse, children or other dependents, or any of them, in such manner as the Company may deem proper. 
 7.5 Forfeitures and
Unclaimed Amounts. Unclaimed amounts shall consist of the amount of the Account of a Participant that cannot be distributed because of the Committee’s inability, after a reasonable search, to locate a Participant or the Participant’s
beneficiary, as applicable, within a period of two years after the Payment Date upon which the payment of benefits becomes due. Unclaimed amounts shall be forfeited at the end of such two-year period. These forfeitures will reduce the obligations of
the Company under the Plan. After an unclaimed amount has been forfeited, the Participant or beneficiary, as applicable, shall have no further right to the Participant’s Account. 

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

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

7.8 Section 16. Notwithstanding any other provision of the Plan, the Compensation Committee may impose such restrictions, rules and
regulations on the terms and conditions of participation in the Plan by any Participant who has been deemed by the Board of Directors of the Company to be subject to Section 16 of the Securities Exchange Act of 1934, as amended, as the
Compensation Committee may determine to be necessary or appropriate. Any investment election made pursuant to Section 5.2 that would result in liability or potential liability under said Section 16 shall be void ab initio.

 Section 8 

Subsidiary Participation 

8.1 Adoption of Plan. Any entity in which the Company directly or through intervening subsidiaries owns 80% or more of the total combined voting
power or value of all classes of stock, or, in the case of an unincorporated entity, 80% or more interest in the capital and profits (a “Subsidiary”) may, with the approval of the Compensation Committee and under such terms and conditions
as the Compensation Committee may prescribe, adopt the corresponding portions of the Plan by resolution of its board of directors and thereby become an “Adopting Subsidiary” The Compensation Committee may amend the Plan as necessary or
desirable to reflect the adoption of the Plan by an Adopting Subsidiary, provided, however, that an Adopting Subsidiary shall not have the authority to amend or terminate the Plan under Section 9 below. Exhibit B identifies the
Adopting Subsidiaries as of January 1, 2010. The Committee may amend Exhibit B from time to time to reflect changes in the Adopting Subsidiaries. 

8.2 Withdrawal from the Plan by Subsidiary. Any Adopting Subsidiary shall have the right, at any time, upon the approval of and under such
conditions as may be provided by the Compensation Committee, to withdraw from the Plan by delivering to the Compensation Committee written notice of its election to withdraw, upon which it shall be considered a “Withdrawing Subsidiary.”
Upon receipt of such notice, the Withdrawing Subsidiary shall establish a successor plan and assume full responsibility (i) for payment of the Account of each Participant who is currently employed by the Withdrawing Subsidiary on the effective
date of the Withdrawing Subsidiary’s withdrawal from the Plan, (ii) to the extent required by the Compensation Committee, for payment of the Account of each Participant who had a Separation from Service prior to the effective date on the
Withdrawing Subsidiary’s withdrawal from the Plan and whose last period of service prior to his or her Separation from Service was with the Withdrawing Subsidiary, and (iii) for continuing to honor the irrevocable Deferral Elections, if
any, that are still in effect with respect to each such Participant. The Company shall have no further obligations to such Participants or any of their beneficiaries under the Plan to the extent that the liability for the payment of their Accounts
is assumed by such Withdrawing Subsidiary. 
 Notwithstanding the foregoing, if an Adopting Subsidiary ceases to be a Subsidiary
for any reason, such Affiliated Subsidiary shall be deemed to have withdrawn from the Plan and become a Withdrawing Subsidiary in accordance with this Section 8.2 immediately before such Affiliated Subsidiary ceases to be a Subsidiary, unless
the Company and the Affiliated Subsidiary or the person or group of persons that acquires a controlling interest in the Affiliated Subsidiary enter into an agreement that requires the Company to retain the liability for the payment of benefits under
the Plan with respect to such Affiliated Subsidiary and/or to effect a Partial Termination of the Plan in accordance with Section 8.3 with respect to such Affiliated Subsidiary. 

8.3 Partial Termination of the Plan Upon a Subsidiary Change of Control Event. Notwithstanding any other provision of the Plan, if an Adopting
Subsidiary undergoes a Subsidiary Change of Control Event, as defined below (a “Disaffiliated Subsidiary”), the 

 
Company, in its sole discretion, may terminate the portion of the Plan (a “Partial Termination”) covering those Participants (“Disaffiliated Participants”) who immediately
following the occurrence of such Subsidiary Change of Control Event are employed by, or are otherwise performing services for, such Disaffiliated Subsidiary. Any such Partial Termination of the Plan shall be done in accordance with and subject to
the requirements imposed under Treasury Regulation Section 1.409A-3(j)(4)(ix)(B), including the following: 
  

	 	(a)	The Company may amend the Plan pursuant to Section 9.1 at any time during the period commencing 30 days prior and ending 12 months after the occurrence of a
Subsidiary Change of Control Event to implement a Partial Termination with respect to such Subsidiary Change of Control Event. 

  

	 	(b)	If a Partial Termination amendment is timely adopted, each Disaffiliated Participant will receive, within the 12 month period following the date the Partial Termination
amendment is adopted, a lump sum distribution of his or her entire Account balance under the Plan and his or her entire account balance under all other Company-sponsored deferred compensation plans that together with the Plan are required to be
treated as a single “plan” under Treasury Regulation Section 1.409A-1(c)(2) immediately following the Subsidiary Change of Control Event. 

  

	 	(c)	An Adopting Subsidiary shall undergo a “Subsidiary Change of Control Event” if (i) it ceases to be a Subsidiary as a result of a stock or asset sale or
similar transaction and (ii) such sale or other transaction constitutes a “change in the ownership” (within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(v)) of such Adopting Subsidiary, a “change in effective
control” (within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vi)(1)) of such Adopting Subsidiary, or a “change in the ownership of a substantial portion of the assets” (within the meaning of Treasury Regulation
Section 1.409A-3(i)(5)(vii)) of such Adopting Subsidiary. 

 8.4 Transfer of Benefit Liabilities to an Asset
Purchaser. In the event of a sale or other disposition of assets by the Company or an Affiliated Subsidiary to an unrelated purchaser (“Purchaser”) in a transaction that is described in Treasury Regulation Section 1.409A-1(h)(4),
the Company and the Purchaser may agree that the Purchaser will assume the benefit liabilities of all Participants hereunder who continue to provide services to the Purchaser (or any related entity that together with Purchaser is treated as a single
employer pursuant to Code Section 414(b) or (c)) immediately following such sale or disposition of assets and each such Participant shall not be treated as having had a Separation form Service hereunder provided that the requirements of
Treasury Regulation Section 1.409A-1(h)(4) are satisfied. 
 Section 9 

Amendment and Termination; ERISA Issues 

9.1 Amendment and Termination. The Company reserves the right at any time by action of its Board of Directors of the Company or the Compensation
Committee to modify, amend or terminate the Plan; provided, however, that no such amendment or termination of the Plan shall result in a reduction or elimination of a Participant’s Account; and further provided that, except
as provided in Section 9.3, no such amendment or termination shall result in any acceleration or delay in the payment of any amount due under this Plan except to the extent such acceleration or delay is permitted by Section 409A. The
Compensation Committee shall provide notice of amendments adopted by the Compensation Committee to the Board of Directors of the Company on a timely basis. 

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

 9.2 Termination of the Plan Upon a Change of Control of the Company. Notwithstanding any other
provision in this Plan to the contrary, immediately following a Change of Control of the Company (as defined below), the Plan shall be terminated and each Participant and each beneficiary of a deceased Participant (without regard to whether such
Participant has had a Separation from Service or is then receiving installments payments) shall receive an immediate lump sum distribution of his or her entire remaining Account balance. 

For purposes of this Section 9.2, a “Change of Control of the Company” means a “change in the ownership” (within
the meaning of Treasury Regulation Section 1.409A-3(i)(5)(v)) of the Company, a “change in effective control” (within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vi)) of the Company, or a “change in the
ownership of a substantial portion of the assets” (within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vii)) of the Company. 

9.3 ERISA Issues. It is the intention of the Company that the Plan be a nonqualified deferred compensation plan described in Sections 201(2),
301(a)(3) and 401(a)(1) of ERISA covering a select group of management or highly compensated employees of the Company or an Adopting Subsidiary (a “Top Hat Plan”). 

Section 10 

Committee Actions and Electronic Elections 

10.1 Actions of Committees. Any actions by the Committee or the Compensation Committee shall be taken upon the approval of a majority of the
members thereof at any in-person or telephonic meeting or in writing. 
 10.2 Electronic Elections. Anything in the Plan to the contrary
notwithstanding, the Committee may in its discretion may make disclosure or give information to Participants and beneficiaries and permit Participants or their beneficiaries to make electronic elections in lieu of written disclosure, information or
elections provided in the Plan. In making such a determination, the Committee shall consider the availability of electronic disclosure of information and elections to Participants and beneficiaries, the protection of the rights of Participants and
their beneficiaries, the appropriateness of the standards for authentication of identity and other security considerations involved in the electronic election system and any guidance issued by any relevant governmental authorities. 

Section 11 

Special Provisions for Rehired Employees 

11.1 Deferral Elections of Rehired Participants. A Participant’s Separation from Service shall have no effect on any Deferral Election in
effect at the time of the Participant’s Separation from Service and such Deferral Election shall continue to apply to any Compensation, Annual Bonus and/or Long-Term Cash Bonus, as applicable, that the Participant receives for the relevant
period to which the Deferral Election applies. If the Participant subsequently resumes service with the Company or a Subsidiary, the Participant may not amend or modify any Deferral Election that remains in effect on the date the Participant resumes
service. The Participant may file new Deferral Elections, if he or she is eligible to do so, at such time and in accordance with the terms and conditions as are set forth in Section 4.1. 

11.2 Payments to Rehired Participants. If a Participant has a bona fide Separation from Service and thereafter resumes service with the Company or
any Subsidiary (whether as an employee or independent contractor), the portion of the Participant’s Account balance attributable to amounts deferred from compensation earned prior to such Separation from Service (as adjusted for net investment
earnings, gains and losses) shall be distributed to the Participant based on such Separation from Service without regard to the Participant’s resumption of service, and any amounts deferred from compensation earned after the Participant’s
resumption of service (as adjusted for net investment earnings, gains and losses) shall not be distributed to the Participant until the Participant’s subsequent Separation from Service. If a Participant had a Separation from Service and
subsequently resumed active service with the Company or a Subsidiary prior to January 1, 2008, then distributions from the Participant’s Account were suspended in accordance 

 
with the terms of the Plan in effect at the time the Participant resumed active service with the Company or a Subsidiary and the Participant’s distributions will not commence until he or she
has another Separation from Service. 
 Section 12 

Claims Procedures 

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

12.2 Review of Claim Denial. If a claim is denied, in whole or in part, the claimant shall have the right to (a) request that the Committee
review the denial, (b) review pertinent documents, and (c) submit issues and comments in writing, provided that the claimant files a written request for review with the Committee within 60 days after the date on which the claimant received
written notice from the Committee of the denial. Within 60 days after the Committee receives a properly filed request for review, the Committee shall conduct such review and advise the claimant in writing of its decision on review, unless special
circumstances require an extension of time for conducting the review. If an extension of time for conducting the review is required, the Committee shall provide the claimant with written notice of the extension before the expiration of the initial
60-day period, specifying the circumstances requiring an extension and the date by which such review shall be completed (which date shall not be later than 120 days after the date on which the Committee received the request for review). The
Committee shall inform the claimant of its decision on review in a written notice, setting forth the specific reason(s) for the decision and reference to Plan provisions upon which the decision is based. A decision on review shall be final and
binding on all persons for all purposes. 
 Executed in multiple originals this 22nd day of March, 2010. 

 

			
	McDONALD’S CORPORATION
		
	By:	 	/s/ Richard Floersch
	Name:	 	Richard Floersch
	Title:	 	Corporate Executive Vice President and Chief Human Resources Officer

 EXHIBIT A 

Index of Defined Terms 
  

			
	 Defined Term
	  	Section
		
	Account	  	5.1(a)
	Adopting Subsidiary	  	8.1
	Annual Bonus	  	2.2(a)
	Annual Bonus Deferral Election	  	2.2(a)
	Annual Bonus Plan	  	2.2(a)
	Annual Deferral Elections	  	4.1(a)
	Annualized Compensation	  	3.1(c)
	Beneficiary Designation	  	6.5(a)
	Change of Control of the Company	  	9.2
	Code	  	1.1
	Committee	  	1.4
	Company	  	1.1
	Compensation	  	3.2(c)
	Compensation Committee	  	1.4
	Compensation Determination Date	  	3.1(b)
	Deferral Election	  	4.1
	Deferred Bonus Eligible Employee	  	2.1
	Deferred Bonus Feature	  	1.3(a)
	Disaffiliated Participants	  	8.3
	Disaffiliated Subsidiary	  	8.3
	Distribution Commencement Date	  	6.1
	Election Due Date	  	4.1(a)
	Elective Deferrals	  	3.2(a)
	ERISA	  	7.6
	ERRP	  	2.3
	Excess 401(k) Contributions Deferral Election	  	3.2(a)
	Excess 401(k) Contributions Deferral Eligible Employee	  	3.3
	Excess 401(k) Contributions Eligible Employee	  	3.1
	Excess 401(k) Contributions Feature	  	1.3(a)
	Excess McDonald’s Common Stock Return	  	5.2(b)(i)
	Excess S&P 500 Index Return	  	5.2(b)(iii)
	Excess Stable Value Return	  	5.2(b)(ii)
	Limits	  	3.2(d)
	Long-Term Bonus Deferral Election	  	2.2(b)
	Long-Term Cash Bonus	  	2.2(b)
	Long-Term Cash Bonus Plan	  	2.2(b)
	Partial Termination	  	8.3
	Participants	  	1.3(b)
	Plan	  	1.1
	Profit Sharing Plan	  	1.2(a)

			
	 Defined Term
	  	Section
		
	 Section 409A
	  	1.5
	 Separation from Service
	  	5.1(b)
	Specified Year	  	3.1
	Subsidiary	  	8.1
	Subsidiary Change of Control Event	  	8.3(c)
	Supplemental Plan	  	1.1
	Top Hat Plan	  	9.3
	Withdrawing Subsidiary	  	8.2

 EXHIBIT B 

Adopting Subsidiaries 

McDonald’s USA, LLC 

McDonald’s Latin America, LLC 

McDonald’s AMEA, LLC 

McDonald’s International, LLC 

McDonald’s Europe, Inc.Terms of the Restricted Stock Units granted

 Exhibit (10)(q) 

Restricted Stock Units (RSUs) 

What are RSUs? 
 Each
“restricted stock unit” – also called an “RSU” or a “unit” – represents one hypothetical share of McDonald’s common stock. RSUs are granted under the 2001 Plan and are subject to the terms of the 2001
Plan and this Prospectus. 
 If you have received an award of RSUs, you must remain employed by McDonald’s until the end of
the vesting period in order for the RSUs to vest, subject to exceptions described below. In some cases, vesting may also be conditioned on performance goals. The vesting period and any applicable performance goals are specified in the grant
materials provided to you with respect to your RSUs. 
 RSUs are paid out either in shares of McDonald’s common stock or in
cash, at McDonald’s discretion. Payout will, subject to certain exceptions described below, occur as soon as administratively practicable after vesting. Each reference herein to the payout of RSUs “as soon as administratively
practicable” following termination of employment or another event shall require the RSUs to be paid out within ninety (90) days following the specified event. 

Does the grant of RSUs provide me with any shareholder rights? 

No. RSUs are not actual shares of stock, so you will not receive dividends on your units and you will have no voting rights with respect
to your units. If your RSUs are paid out in shares of McDonald’s common stock, you will have rights as a shareholder once you receive those shares. 

When do my RSUs vest? 

Typically on the third anniversary of the grant date. As explained above under “What are RSUs?”, your RSUs will vest in
accordance with the terms set forth in the confirmation sheet indicating the exact number of RSUs that you have been granted. Special rules apply if your employment terminates before the end of the vesting period, as explained below under
“What happens to my RSUs if I terminate employment before they vest?” Special rules also apply if a change in control of McDonald’s occurs before the end of the vesting period, as explained below under “Other
Information-Change in Control”. 
 What does “vesting” mean for my RSUs? 

Vesting means that you have satisfied the service requirement and, if applicable, the performance requirement and earned your RSUs.

 You will receive a payout of your vested RSUs as soon as is administratively practicable after vesting, subject to certain
exceptions described below in the cases of termination of employment or change in control prior to the originally scheduled vesting date. The payout of RSUs will be made either in shares of McDonald’s common stock or in cash, as McDonald’s
decides. If McDonald’s decides to pay in shares, you will receive a number of shares of McDonald’s common stock equal to the number of your vested RSUs, subject to tax withholding and any applicable fees, as described below. If
McDonald’s decides to pay in cash, you will receive a cash payment equal to the value of that number of shares at the close of business on the day the RSUs vest, subject to tax withholding and any applicable fees, as described below. If you
receive a payout in shares, you will then have dividend, voting and other shareholder rights as to those shares. 
 What is the U.S. federal
income tax treatment of an RSU? 
 The following discussion is limited to United States federal income tax laws applicable
to RSU recipients who are both citizens and residents of the United States. The United States federal income tax treatment of RSUs granted to other recipients may differ. If you are a citizen of the United States and a resident of another country,
or a resident of the United States and a citizen of another country, you are subject to United States federal income tax laws and you may also be subject to the tax laws of other countries. The discussion does not address the possible impact of the
tax laws of other countries, which may provide for different tax consequences to recipients who are subject to such laws. Also, this discussion does not address the possible impact of the short-swing profit recovery rules of Section 16 of the
Securities Exchange Act of 1934, as amended, on the taxation of executive officers’ RSUs. You should consult your tax advisor about the tax consequences of RSUs, including the relevance to your particular situation of the considerations
discussed below. This discussion describes the tax law in effect on the date of this Prospectus and could change as a result of amendments to the law. 

Non-U.S. Tax Consequences. If you are not both a citizen and a resident of the United States, please consult your Guide to Issues
in your country for tax considerations relating to your RSUs. 

 General. Generally you will have taxable compensation income when you receive your
RSU payout, regardless of whether the payout is in shares or cash. The amount of ordinary income will be equal to the number of your RSUs multiplied by the NYSE composite closing price of the McDonald’s common stock at vesting. If the payout is
in shares, McDonald’s will require share withholding at the minimum statutory withholding rates in effect a the time of payment to cover, in part, your tax obligation. If the payout is in cash, McDonald’s will apply required withholding
procedures. 
 Tax under Section 409A on Deferred Compensation. In late 2004, a new Section 409A (“Section
409A”) was added to the Internal Revenue Code governing the taxation of certain deferred compensation. McDonald’s believes that the terms of RSUs are such that you will not be subject to tax penalties under this tax law as a result of
receiving these awards. The Company reserves the right to modify grants if necessary to avoid the imposition of these tax penalties. 

State and Local Taxes. Settlement of RSUs may also be subject to state and local taxation which varies from location to location.

 Effect on McDonald’s. The Company is generally entitled to a tax deduction in the same amount and in the same year
in which you recognize ordinary income resulting from the settlement of RSUs. 
 When is the income from RSUs taxable to non-U.S. recipients?

 Please refer to your Guide to Issues in your country and consult with your personal tax advisor. 

What happens to my RSUs if I terminate employment before they vest? 

The treatment of your RSUs upon termination of your employment before the end of the vesting period depends on the reason for your
termination. The following sections describe the treatment of your RSUs upon termination of employment. Each reference herein to the payout of RSUs “as soon as administratively practicable” following termination of employment or another
event shall require the RSUs to be paid out within ninety (90) days following the specified event. 
  

	 	•	 	 Termination With At Least 68 Years of Combined Age and Company or Affiliate Service 

If you voluntarily terminate your employment with McDonald’s and (i) your combined age and years of Company and/or Affiliate
Service equal or exceed 68, (ii) you provide six months prior written notice of your intention to terminate employment to Lisa Emerson, Corporate Vice President – Global Total Compensation, and (iii) you execute and deliver to the
Company a non-competition agreement satisfactory to the Company (in both cases as the Compensation Committee, or its delegee, may require), then you will vest in a pro-rata portion of your RSUs, based on the formula below. The vested RSUs will be
paid out as soon as administratively practicable after termination of employment. If you are a Specified Employee, your payment will be deferred until as soon as administratively practicable following the first to occur of (i) the originally
scheduled vesting date, (ii) the six-month anniversary of your termination of employment, or (iii) your death. 
 If
you violate the provisions of the non-competition agreement during the period following termination, the Company may seek to administratively or judicially enforce the covenants under the non-competition agreement and any failure to enforce that
right does not waive that right. 
 In addition to any other requirements, for all grants on or after February 13, 2008, you
are required to execute and deliver a release agreement satisfactory to the Company in order to receive this treatment. 

Special Rule – RSUs Granted on or After February 14, 2007 to Recipients in a European Market. Please refer to the
European Supplement to this Prospectus for information regarding the treatment of your RSUs upon termination of employment. 
  

	 	•	 	 Retirement After Age 60 with 20 Years or More of Company or Affiliate Service 

If your employment terminates, other than for Cause, at any time after you attain age 60 with at least 20 years of Company and/or
Affiliate Service, then you will vest in a pro-rata portion of your RSUs, based on the formula set forth below. The vested RSUs will be paid out as soon as administratively practicable after termination of employment. If you are a Specified
Employee, your payment will be deferred until as soon as administratively practicable following the first to occur of (i) the originally scheduled vesting date, (ii) the six-month anniversary of your termination of employment, or
(iii) your death. 
 In addition to any other requirements, for all grants on or after February 13, 2008, you are
required to execute and deliver a release agreement satisfactory to the Company in order to receive this treatment. 
 Special
Rule – RSUs Granted on or After February 14, 2007 to Recipients in a European Market. Please refer to the European Supplement to this Prospectus for information regarding the treatment of your RSUs upon termination of employment.

 Performance Vesting. If your employment terminates pursuant to either of the above rules and your RSUs are subject to
performance-based vesting, they will be paid out as soon as administratively practicable after the originally scheduled vesting date, in the same amount, if any, that would have been paid to you based on actual performance had you remained employed
through the originally scheduled vesting date but subject to the proration noted above in accordance with the formula set forth below. 

	 	•	 	 Special Circumstances (including Disaffilation). 

Special Circumstances means termination of employment by the Company without Cause or becoming an owner-operator of a McDonald’s
restaurant. 
 If you are terminated as a result of Special Circumstances and your combined age and years of Company and/or
Affiliate Service are equal to or greater than 48, a pro-rata portion of your unvested RSUs will vest, based on the formula below. The vested RSUs will be paid out as soon as administratively practicable after termination of employment. If you are a
Specified Employee, your payment will be deferred until as soon as administratively practicable following the first to occur of (i) the originally scheduled vesting date, (ii) the six-month anniversary of your termination of employment, or
(iii) your death. 
 In addition to any other requirements, for all grants on or after February 13, 2008, you are
required to execute and deliver a release agreement satisfactory to the Company in order to receive this treatment. 
 Special
Rule – RSUs Granted on or After February 14, 2007 to Recipients in a European Market. Please refer to the European Supplement to this Prospectus for information regarding the treatment of your RSUs upon termination of employment.

 Performance Vesting. If your RSUs are subject to performance-based vesting, they will be paid out as soon as is
administratively practicable after the originally scheduled vesting date, in the same amount, if any, that would have been paid to you based on actual performance had you remained employed through the originally scheduled vesting date but subject to
the proration noted above in accordance with the formula set forth below. 
 FORMULA FOR PRO-RATA VESTING 

For non-performance-based awards, the formula for pro-rata vesting is as follows: [Number of RSUs granted] multiplied by [the number of
months from the grant date through the date of termination] divided by [the number of months in the vesting period]. 
 For
performance-based awards, the formula for pro-rata vesting is as follows: [Number of RSUs that vest based on actual performance] multiplied by [the number of months from the grant date through the date of termination] divided by [number of months in
the vesting period]. The “number of RSUs that vest based on actual performance” means the number of RSUs that would have actually vested on the originally scheduled vesting date, had you remained employed until that date. 

Partial months are treated as whole months for the numerator in this calculation. The denominator will be expressed in months, and will
be fixed on the date of the grant at the number of months in the vesting period. In the event that McDonald’s decides to pay out your RSUs in shares and fractional shares result from applying the formula, any fractional share will be rounded up
to the next whole share. 
 Examples 

Non-Performance-Based Vesting: If you receive a non-performance-based grant of 900 RSUs on July 18, 2007 with a three-year
vesting period, and you retire on June 2, 2008, 300 of your 900 RSUs would vest and be paid out, because you would have worked 12 months (counting July 2007 and June 2008 each as whole months) out of the 36-month vesting period. 

Performance-Based Vesting: If you receive a performance-based grant of 1,000 RSUs on February 1, 2005 with a three-year
vesting period and a performance goal based on EPS for the period ended December 31, 2007, and you retire on December 31, 2006, your payout, if any, will not be determined and paid immediately, but will be determined based on actual EPS
through December 31, 2007. If the Company achieves the stated EPS threshold, so that all of your RSUs would have vested had you worked through February 1, 2008, then 638 of your 1,000 RSUs would vest and be paid out, because you have
worked 23 months out of the 36-month vesting period and the Company achieved performance to warrant 100% payout. If the Company’s actual EPS achievement results in only 75% vesting, then the number of your RSUs that vest and pay out would be
479 (computed as 750 x 23/36). 
  

	 	•	 	 For Cause or Policy Violation 

If you are terminated for Cause (including on account of a Policy Violation, as determined by the Compensation Committee or its delegee)
before your RSUs vest, you will forfeit them. 
  

	 	•	 	 Death or Disability 

If you terminate employment because of death or Disability before the scheduled vesting date of your RSUs, they will, unless the award is
subject to performance-based vesting, immediately vest and be paid out as soon as is administratively practicable after termination of employment, except that if you are a Specified Employee pursuant to the Company’s Specified Key Employee
Policy (“Specified Employee”) and your termination is due to Disability but you are not disabled within the meaning of Section 409A, your payment will be deferred until as soon as administratively practicable following the first to
occur of (i) the originally scheduled vesting date, (ii) the six-month anniversary of your termination of employment, or (iii) your death. 

 If your RSUs are subject to performance-based vesting and you die or terminate employment
because of Disability before the scheduled vesting date of your RSUs, they will be paid out, as soon as is administratively practicable after the originally scheduled vesting date, in the same amount, if any, that would have been paid to you based
on actual performance had you remained employed through the originally scheduled vesting date. 
  

	 	•	 	 Termination For Any Other Reason 

If your employment terminates for any reason not listed above before your RSUs vest, you will forfeit them. 

 

	 	•	 	 Special Terms for Grants to Executive Officers of McDonald’s Corporation 

For grants on or after February 10, 2010, if you have been appointed by the Board of Directors of McDonald’s Corporation as
an Executive Officer, please refer to the Executive Supplement for more details on the treatment of your stock options and RSUs upon termination. 

What happens to my RSUs upon a change in control or other transaction involving McDonald’s? 

RSUs will immediately vest upon a change in control if (a) McDonald’s common stock ceases to be publicly traded and (b) the
awards are not replaced by equivalent awards based upon publicly traded stock of a successor company or parent. In such an event, RSUs (including performance-based RSUs) will be paid out in full as soon as administratively practicable following the
change in control (but in no event more than 90 days following the change of control), except that if the change in control does not qualify as a change in control for purposes of Section 409A, payment will be deferred until the first to occur
of (i) the originally scheduled vesting date, (ii) your termination of employment (or, if you were an Specified Employee, the six-month anniversary of your termination of employment), or (iii) your death or disability within the
meaning of Section 409A. 
 If the immediate vesting described in the preceding paragraph does not apply, but the Company
terminates your employment for any reason other than Cause within two (2) years following a change in control, all of your RSUs (including performance-based RSUs) will vest and be paid out immediately (except that if you were an Specified
Employee, payment will be deferred until the first to occur of (i) the originally scheduled vesting date, (ii) the six-month anniversary of your termination of employment, (iii) or your death or disability within the meaning of
Section 409A). 
 Please refer to the “Other Information” section below for information concerning what
constitutes a “change in control” as defined in the Plan. 
 Is there anything else I need to do to make sure I don’t forfeit
my RSUs? 
 You should make sure that the Company has your current address and contact information. If at the time your RSUs
become payable, the Company is unable, after a reasonable search, to locate you or your beneficiary, as applicable, within a period of two calendar years after the payment becomes due, your RSUs will be considered “unclaimed amounts” and
will be forfeited. After an unclaimed amount has been forfeited, you or your beneficiary, as applicable, will have no further right to any payment of the unclaimed amount. 

Are the RSUs transferable? 

Your RSUs are not assignable or transferable during your lifetime. As described below, subject to certain exceptions for performance-based
RSUs, if you die while holding unvested RSUs, your unvested RSUs immediately will vest, and all of your RSUs will be paid out in shares or in cash, at the Company’s discretion, as soon as is administratively practicable after death. This payout
will be made to your beneficiaries or, if you have not designated a beneficiary, in accordance with your will or the applicable laws of descent and distribution. See “How do I designate a beneficiary? What happens if I don’t designate
one?” 
 If I receive shares of common stock upon vesting of my RSUs, when can I sell them? 

Generally, you may freely sell your shares at any time after you receive them. However, some recipients of RSUs may be subject to the
Company’s rules relating to (i) the short-swing profit recovery rules of Section 16 of the Securities Exchange Act of 1934, as amended, upon settlement of their RSUs, (ii) certain restrictions imposed by Rule 144 under the
Securities Act of 1933, as amended and/or (iii) other Company restrictions on trading (including the Company’s trading window rule). 

Will the Company offer equalization under its retirement plans for the RSU payouts or treat RSUs as compensation for any other purpose? 

No. RSUs under the 2001 Plan will not be considered compensation for any of McDonald’s retirement plans or any other employee benefit
plan. 
 What is my creditor status? 

You will be an unsecured general creditor of McDonald’s and there will be no Company funding of the liability with respect to RSUs.

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