Document:

<PAGE>

                               January 17, 2001

E.ON International Finance B.V.
Strawinskylaan 3111,
1070 ZX Amsterdam
The Netherlands
Attention: Mr. Peter Pels

E.ON AG
Bennigsenplatz 1
D-40474 Dusseldorf
Germany
Attention: Dr. Michael Bangert

Ladies and Gentlemen:

     Reference is made to (a) the Credit Agreement dated as of September 22,
2000 (the "Credit Agreement") between MEMC Electronic Materials S.P.A. ("MEMC
Sub") and E.ON International Finance B.V., formerly called VEBA International
Finance B.V. ("Finance") and (b) the Guaranty of MEMC Electronic Materials, Inc.
("MEMC") dated September 22, 2000, relating to, among other things, the Credit
Agreement (the "Guaranty").

     MEMC, E.ON AG and Finance hereby agree that if on or prior to September 1,
2001, the entire principal amount of 80 million euro, plus all accrued interest
and any other outstanding amounts owing under the Credit Agreement have not been
paid in full to Finance, then (i) MEMC shall cause MEMC Sub to execute and
deliver to Finance, and Finance shall execute and deliver to MEMC Sub, an
amended and restated Credit Agreement, and (ii) MEMC shall execute and deliver
to Finance an amended and restated Guaranty. The amended and restated Credit
Agreement and the amended and restated Guaranty shall amend and restate the
Credit Agreement and the Guaranty, respectively, in a manner substantially the
same as the amended and restated credit agreements between E.ON AG and MEMC
effective as of December 31, 2000, including, without limitation, the extension
of the maturity date of the Credit Agreement for an additional twelve months
until September 22, 2002.

                                        Very truly yours,

                                        MEMC Electronic Materials, Inc.

                                        By: /s/ Kenneth L. Young
                                           ----------------------------------
                                           Name:  Kenneth L. Young
                                           Title: Treasurer

ACCEPTED AND AGREED:

E.ON INTERNATIONAL FINANCE B.V.

By: /s/ H. J. Wirix and S. A. L. Visser
   -------------------------------------------
   Name: H. J. Wirix and S. A. L. Visser
   Title: Managing Director/Managing Director

By:_____________________________________
   Name:
   Title:

                                    Page 1
<PAGE>

E.ON AG

By: /s/  Erhard Schipporeit
   ---------------------------------------
   Name:  Dr. Erhard Schipporeit
   Title: Chief Financial Officer

By: /s/ Michael Bangert
   ---------------------------------------
   Name:  Dr. Michael Bangert
   Title: Vice President

                                    Page 2<PAGE>

                                                                   Exhibit 10(f)
                             McDONALD'S CORPORATION
                             ----------------------
                              DEFERRED INCOME PLAN
                              --------------------
          (As Amended and Restated Effective as of September 1, 2000)

                                   Section 1
                                   ---------
                                  Introduction
                                  ------------

     1.1  The Plan and Effective Date.  The McDonald's Corporation Deferred
Income Plan, formerly known as the McDonald's Corporation Deferred Incentive
Plan, ("Plan") was established November 1, 1993. The Plan was amended and
restated effective September 1, 1994 and was subsequently amended by the first
amendment thereof effective as of February 1, 1996 and the second amendment
thereof effective as of August 15, 1996. The Plan was subsequently amended and
restated effective several times, including amendment and restatements effective
as of January 1, 1997, July 15, 1997, August 1, 1998, December 1, 1998 and
September 1, 1999. The "effective date" of the amendment and restatement of the
Plan as set forth herein is September 1, 2000 (unless otherwise indicated
herein).

     1.2  Purpose.  McDonald's Corporation ("McDonald's" or the "Company") has
established the Plan for its officers, regional managers, department directors
(and other employees in the Senior Director Compensation Band), and certain
expatriate international country heads to retain and attract highly qualified
personnel by offering the benefits of a non-qualified, unfunded plan of deferred
compensation.  The Company may also allow other subsidiaries or affiliates to
adopt the Plan in accordance with Section 7.

     1.3  Administration.  The Plan shall be administered by the Compensation
Committee of the Board of Directors of the Company (the "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 Committee may delegate its authority
hereunder to an officer or officers of the Company.

                                   Section 2
                                   ---------
                      Participation and Deferral Elections
                      ------------------------------------

     2.1  Eligibility and Participation.  Subject to the conditions and
limitations of the Plan, all officers, regional managers, department directors
and other employees who are in the Senior Direction Compensation Band of the
Company and international country heads who are on United States payroll and who
are identified as eligible by the Committee shall be eligible to participate in
the Plan ("Eligible Employees").  Notwithstanding the foregoing, an individual
who becomes employed in one of the positions listed in the preceding sentence
after the Due Date (as defined in Section 2.3(a)) shall be eligible to
participate in the Plan and become an Eligible Employee on the first

                                       1
<PAGE>

day of the month next following the date of such employment. Any Eligible
Employee who makes a Deferral Election as described in Section 2.2 below shall
become a participant in the Plan ("Participant") and shall remain a Participant
until the entire balance of the Participant's Deferral (defined in Section 4.1
below) is distributed.

     2.2  Deferral Elections.  Any Eligible Employee may make an election to
defer receipt of all or any portion (in 5% increments) of his or her incentive
under the McDonald's Target Incentive Plan ("TIP") for a calendar year.  Subject
to Section 2.3(b) below, any Eligible Employee may also make an election to
defer a percentage (in 5% increments) of his or her base salary for the
following calendar year in accordance with the following schedule:

             Compensation Band                           Maximum Deferral
     (or Category of Eligible Employee)                     Percentage
     --------------------------------------------------------------------

     Highest paid five officers (ranked by the
     total of base pay and the target incentive
     under TIP for the current year)                            90%
     Executive Management Band                                  80%
     (includes Executive Vice Presidents)
     Senior Leadership and Leadership Bands                     70%
     (includes all other officers and regional managers)
     Senior Direction Band                                      60%
     (includes Department Directors)

provided, however, that the committee of officers designated by the Committee to
administer the Plan (the "Officer Committee") may, in its discretion, grant
individual requests for higher deferral percentages of base salary and provided
further that the Officer Committee may, in its discretion, authorize Eligible
Employees to modify their deferral percentages of base salary as may be
necessary to reflect organizational, title or compensation band changes. Such
modification may be made only with respect to base salary earned and paid after
the effective date of the modification.

If applicable, any Eligible Employee may also make an election to defer all or a
portion (in 5% increments) of his or her Three-Year Incentive award ("Three-Year
Incentive") under the 1992 Stock Ownership Incentive Plan for a calendar year.

Elections to defer TIP, base salary or Three-Year Incentive awards are referred
to herein as "Deferral Elections".  All other forms of compensation, including
but not limited to exit bonuses, severance bonuses or bonuses paid under the
Executive Retention Plan during a transition or retention period may not be
deferred under this Plan.

     2.3  Rules for Deferral Elections.  Deferral Elections shall be made in
accordance with the rules set forth below:

                                       2
<PAGE>

     (a)  All Deferral Elections must be in writing on such forms as the
          Committee may prescribe and must be returned to the Committee no later
          than the date specified by the Committee (the "Due Date"). In no event
          will the Due Date be later than the end of the year that precedes the
          year that the amount deferred would otherwise be made available to
          such Eligible Employee.

     (b)  An individual shall be eligible to make a Deferral Election only if he
          or she is an Eligible Employee on the Due Date. Notwithstanding the
          foregoing, an individual who becomes an Eligible Employee after the
          Due Date in accordance with Section 2.1 will be eligible to make a
          base salary Deferral Election within 30 days after the date he or she
          becomes an Eligible Employee. Such Deferral Elections shall become
          effective as soon as administratively feasible after the Deferral
          Election is made.

     (c)  If an Eligible Employee terminates employment in the same calendar
          year in which he or she makes a Deferral Election, that Deferral
          Election (and any Deferral Elections respecting future compensation in
          years following the year of employment termination) will be null and
          void and no deferral will be made. This provision will not apply to
          any base salary Deferral Election made in accordance with Section
          2.3(b) by an individual who becomes an Eligible Employee after the Due
          Date.

     (d)  Amounts will be deferred to the "Payment Date" specified by the
          Eligible Employee in the Deferral Election and payments will commence
          within 30 days following the Payment Date in accordance with Section
          5.1(b). The Payment Date specified must be no earlier than the March
          31st of the calendar year following the year in which the deferred
          amounts would otherwise have been paid and must be either a "Specific
          Payment Date" or an "Employment Termination Payment Date" as follows:

          (i)  A "Specific Payment Date" is the 15th or last day of a specified
               month (but not December 31) of a specified year.

          (ii) An "Employment Termination Payment Date" is the March 31
               following the year in which the Eligible Employee terminates
               employment, unless the Eligible Employee elects a later
               Employment Termination Date in accordance with Section 5.1(a).

          If an Eligible Employee terminates employment and has one or more
          Specific Payment Dates that would occur after the Employment
          Termination Payment Date, all amounts deferred to those Specific
          Payment Date(s) shall automatically be accelerated and payment will
          commence in accordance with the Eligible Employee's Employment
          Termination Payment Date election under Section 5.1(a).  Participant
          401(k) McDESOP Equalization Amounts and Company Profit Sharing

                                       3
<PAGE>

          Equalization Credits described in Section 3 shall be deferred to the
          Participant's Employment Termination Payment Date, even though a
          Participant has elected a Specific Payment Date for the remainder of
          his or her deferral.

     (e)  An Eligible Employee may revoke a Specific Payment Date and elect an
          earlier or later Payment Date and may revoke an Employment Termination
          Payment Date and elect an earlier Payment Date, subject to the
          following rules:

          (i)  The election to revoke a Payment Date and elect a new Payment
               Date must be made no later than the end of the calendar year
               preceding the original designated Payment Date and must be made
               at least six months prior to the original designated Payment
               Date; and

          (ii) Any new designated Payment Date must be in a calendar year
               subsequent to the date of the election and must be at least six
               months after the date of the election.

                                   Section 3
                                   ---------
         Equalization for McDonald's Corporation Profit Sharing Program
         --------------------------------------------------------------

     3.1  Equalization to Adjust for Participant 401(k) McDESOP Contributions.
Amounts deferred under this Plan are not considered compensation for the
McDonald's Corporation Profit Sharing Program (the "Profit Sharing Program") or
for the related non-qualified plans: the McDonald's 1989 Executive Compensation
Plan, the McDonald's Supplemental Employee Benefit Equalization Plan and the
McDonald's Profit Sharing Program Equalization Plan (the "McCAP/McEqual Plans").
The McDESOP portion of the Profit Sharing Program allows participants to
contribute a percentage of their compensation as Section 401(k) contributions.
Therefore, Eligible Employees who are Profit Sharing Program participants and
make Deferral Elections for base salary and TIP awards under this Plan shall
automatically have a portion of these deferred amounts set aside until the
Participant's Employment Termination Payment Date to adjust for the fact that
McDESOP Section 401(k) contributions cannot be made to the Profit Sharing
Program or the related non-qualified plans for these deferred amounts (the
"Participant 401(k) McDESOP Equalization Amount"). The Participant 401(k)
McDESOP Equalization Amount shall be based on the amount that would have been
contributed by the Participant under the McDESOP portion of the Profit Sharing
Program and the related non-qualified plans if the deferral of base salary and
TIP had not occurred. No Participant 401(k) McDESOP Equalization credit will be
made for deferrals of Three-Year Incentive awards under this Plan.

     3.2  Company Profit Sharing Equalization Credits.  Amounts deferred under
this Plan are not considered as compensation under the Profit Sharing Program or
the

                                       4
<PAGE>

McCAP/McEqual Plans. Therefore, base salary and TIP awards deferred under this
Plan shall be credited with an amount equal to the Company contribution that the
Participant would have received under the Profit Sharing Program and/or
McCAP/McEqual Plans if such deferral had not occurred ("Company Profit Sharing
Equalization Credit"). If a Participant is not eligible to participate in the
Profit Sharing Program or McCAP/McEqual Plans, or is not eligible to receive a
Company contribution under such plans with respect to a deferred amount, no
Company Profit Sharing Equalization Credit will be made. No Company Profit
Sharing Equalization Credit shall be made for Three-Year Incentive awards
deferred under this Plan.

     3.3  Rules for Profit Sharing Equalization Amounts.  Equalization amounts
under Sections 3.1 and 3.2 above (collectively referred to as "Equalization
Amounts") shall be deferred until the Participant's Employment Termination
Payment Date and cannot be withdrawn under Section 5.3.  Equalization Amounts
will become part of the Participant's Deferral Account and will be credited with
earnings as part of that Deferral Account as described in Section 4.1.

                                   Section 4
                                   ---------
                               Deferral Accounts
                               -----------------

     4.1  Deferral Accounts.  A bookkeeping account shall be established in the
Participant's name ("Deferral Account").  Each Participant's Deferral Account
may be further divided into:

     (a)  amounts deferred pursuant to that year's Deferral Election and
          earnings thereon,

     (b)  Company Profit Sharing Equalization Credits associated with that
          year's Deferral Election and earnings thereon; and

     (c)  Participant 401(k) McDESOP Equalization amounts associated with that
          year's Deferral Election and earnings thereon.

The Committee may also authorize other divisions or subaccounts of the Deferral
Accounts as may be necessary to reflect the terms of the Plan as amended from
time to time.

Amounts deferred pursuant to a Deferral Election shall be credited to the
Deferral Account as of the date the Participant would otherwise have received
the deferred amounts in the absence of a Deferral Election.  Any Equalization
Amounts shall be credited to the Deferral Account as of the date the amount
would have been allocated under the Profit Sharing Program or the McCAP/McEqual
Plans if the deferral had not occurred.

                                       5
<PAGE>

     4.2  Investment Elections and Earnings Credits.  Each Participant in the
Plan shall make an investment election, as described below, and such election
shall apply to the entire amount credited to the Participant's Deferral under
the Plan.  However, Section 16 Insiders, as defined in Section 5.5 of the Plan
may not make investment elections involving McDonald's Common Stock.  (For
further details concerning these restrictions, see Section 5.5 of the Plan.)

A Participant may change his investment election effective as of the first day
of any month.  All investment elections shall be made by filing an investment
election form with the Committee at such time and in such manner as the
Committee may specify.  If no new investment election is filed, the
Participant's Deferral Account will continue to be invested in accordance with
his or her most recent investment election.

Investment elections may be split between the rates of return equivalent to the
rates of return of the investment funds under the Profit Sharing Program in
increments of 5%, provided that the percentages specified must total 100%. As of
September 1, 2000, these equivalent rates of return are:

     (a)  a rate of return based upon the McDonald's Common Stock Fund under the
          Profit Sharing Program, after adjustment for expenses ("McDonald's
          Common Stock" equivalent);

     (b)  effective July 1, 2000, a rate of return based upon the International
          Stock Fund under the Profit Sharing Program, after adjustment for
          expenses ("International Stock"equivalent);

     (c)  a rate of return based upon the  Stable Value Fund under the Profit
          Sharing Program, after adjustment for expenses ("Stable Value"
          equivalent);

     (d)  a rate of return based upon the Diversified Stock Fund under the
          Profit Sharing Program, after adjustment for expenses ("Diversified
          Stock" equivalent);

     (e)  a rate of return based upon the Blended Stock/Bond Fund under the
          Profit Sharing Program, after adjustment for expenses ("Blended
          Stock/Bond" equivalent);

     (f)  a rate of return based upon the S&P 500 Index Fund under the Profit
          Sharing Program, after adjustment for expenses ("S&P 500 Index"
          equivalent); and

     (g)  a rate of return based upon the Money Market Fund under the Profit
          Sharing Program, after adjustment for expenses ("Money Market"
          equivalent).

                                       6
<PAGE>

Effective January 1, 2001, the International Stock, Diversified Stock and
Blended Stock/Bond based returns will no longer be available for investment
elections under the Plan. Prior to that date, each Participant may elect to
change his or her election under the International Stock, Diversified Stock and
Blended Stock/Bond based returns to an election in the Company Stock, S&P 500
Index, Stable Value and/or Money Market based returns.  If a Participant fails
to make such a new election before the due date specified by the Committee,
amounts credited with the International Stock, Diversified Stock or Blended
Stock/Bond rates of return shall automatically be credited with the S&P 500
Index rate of return, effective as of January 1, 2001.

If a Participant fails to make an investment election, amounts shall be credited
with the same rate of return as amounts for which no investment election is
received under the Profit Sharing component of the McDonald's Corporation Profit
Sharing Program. (Currently, this is the Money Market equivalent rate of
return.) All investment elections will continue in effect for all Participants
until the Participant files a new investment election.

As of the 15th day (or if the 15th day of the month is not a business day, the
next previous business day) and the last business day of each calendar month, or
such additional dates as the Committee shall specify ("Valuation Date"), each
Deferral Account shall be credited with earnings, gains and losses equal to the
amount the Deferral Account would have earned, gained or lost, since the prior
Valuation Date if actually invested in the funds specified.

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

                                   Section 5
                                   ---------
                              Payment of Benefits
                              -------------------

     5.1  Time and Method of Payment.  Payments of a Participant's Deferral
Account shall be made to a Participant, or the Participant's beneficiary if the
Participant is deceased, in accordance with the rules set forth below:

     (a)  Time of Payment. Payment shall be made in accordance with the
          applicable Specific Payment Date or Employment Termination Payment
          Date.  A Participant may elect an Employment Termination Payment Date
          that is later than the March 31 following the year in which the
          Participant terminates employment, which later date shall be either
          the 15th or last date of any month (but not December 31) specified by
          the Participant. Such election shall be made in writing in such form
          as the Committee shall require, no later than December 31 of the year
          in which the Participant terminates employment.

                                       7
<PAGE>

     (b)  Commencement of Payment.  Payment to the Participant or the
          Participant's beneficiary shall commence within 30 days following the
          Payment Date.

     (c)  Method of Payment.  Payments to a Participant or Participant's
          beneficiary shall automatically be paid in a lump sum, unless the
          Participant or the Participant's beneficiary elects one of the
          following installment payment methods:

          (i)   In monthly, quarterly or annual installments over a period of up
                to 25 years, as specified by the Participant or the
                Participant's beneficiary. Installment payments shall be made in
                substantially equal installments over the installment period
                specified. Each installment payment shall be computed by
                dividing the balance of the Deferral Account that is to be paid
                in installments by the number of payments remaining in the
                installment period.

          (ii)  In monthly, quarterly or annual installments of a dollar amount
                specified by the Participant or the Participant's beneficiary.

          (iii) In an initial partial lump sum payment with subsequent
                installment payments. The lump sum payment and first installment
                payment shall be distributed in a year specified by the
                Participant or the Participant's beneficiary and subsequent
                monthly, quarterly or annual installment payments shall be made
                either over a period of years (as described in (i) above) or of
                a specified dollar amount (as described in (ii) above), as
                specified by the Participant or the Participant's beneficiary.

          An installment distribution election under this Section 5.1(c) shall
          be made in writing in such form as the Committee shall require on or
          before the December 31 of the calendar year preceding the Payment
          Date. Such installment distribution election shall apply to all
          payments that commence on the same Payment Date. Once an installment
          election is filed for a Payment Date, it cannot be revoked.
          Installment payments shall commence within 30 days after the Payment
          Date.

Notwithstanding the foregoing, Deferral Elections made in 1993 which specified a
five year installment payment shall be null and void, and shall be paid in a
lump sum, unless the Participant or the Participant's beneficiary files a
written installment election prior to December 31 of the calendar year preceding
the Payment Date.

     5.2  Form of Payment.  All payments shall be made in cash.  However, a
Participant who has elected a McDonald's Common Stock based return may elect to
receive payment in the form of shares of McDonald's Common Stock by filing a
written

                                       8
<PAGE>

request with the Committee prior to December 31 of the calendar year preceding
the Payment Date.

     5.3  Early Withdrawals and Acceleration of Installment Payments.  A
Participant shall have the right to withdraw in cash any portion of the balance
of his or her Deferral Account (except for the Equalization Amounts of the
Participant's Deferral Account under Sections 4.1(b) and (c) and amounts which
were not withdrawable under the terms of the Plan prior to September 1, 1994) at
any time prior to the applicable Payment Date, subject to the Committee's
consent and a 10% forfeiture penalty on the amount requested.  A Participant who
is receiving installment payments may accelerate payment of any unpaid amount,
subject to the Committee's consent and 10% forfeiture penalty on the amount
accelerated.  The withdrawal or accelerated installment (reduced by the 10%
forfeiture penalty) shall be paid within 30 days of the Valuation Date next
following the date the election to withdraw or accelerate payments is approved
by the Committee.  Withdrawals and accelerated installments shall be made first
from the earliest maturing Deferral Account and shall be taken pro rata from the
investment rate equivalents elected by the Participant.  Withdrawals shall be
subject to such procedures as the Committee shall establish from time to time.

     5.4  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 and paid at the time base salary payments or incentive payments under
TIP or the Three-Year Incentive would otherwise have been paid to the
Participant. The Company shall also withhold any other employment taxes as
necessary to comply with applicable laws.

     5.5  Limitations For Section 16 Insiders.  A "Section 16 Insider" shall
include any Participant who has been deemed to be subject to Section 16 of the
Securities Exchange Act of 1934 (the "Exchange Act") by the Board of Directors
of the Company.  Notwithstanding any provision of the Plan to the contrary, the
Deferral Account of each Section 16 Insider is subject to the following
limitations:

     (a)  An Eligible Employee who is a Section 16 Insider at the time he or she
          makes a Deferral Election may elect a McDonald's Common Stock based
          return and at the same time must also specify the Payment Date and
          whether the payment will be in a lump sum or the specific installment
          method that will apply.  The election of a McDonald's Common Stock
          based return is irrevocable and cannot be changed by an investment
          election at a later date.  A Participant who is a Section 16 Insider
          may not make a withdrawal or accelerate installments under Section 5.3
          of any Deferral Accounts that are credited with a McDonald's Common
          Stock based return.  Section 16 Insiders who elect a McDonald's Common
          Stock based return and a form of payment will not be able to change
          those elections, even if the Plan is amended at a later date to
          provide increased flexibility.

                                       9
<PAGE>

     (b)  A Section 16 Insider who elects to invest in a McDonald's Common Stock
          based return shall also elect, at the time the deferral is made,
          whether the distribution will be paid in cash or in the form of
          McDonald's Common Stock.  This provision applies only to Deferral
          Elections made on and after August 15, 1996.  Amounts deferred under
          all Deferral Elections made prior to August 15, 1996 will be paid in
          cash.  However, for these cash distributions only, to the extent that
          a Section 16 Insider uses the cash distribution to purchase shares of
          McDonald's Common Stock on the open market in one or more transactions
          within seven months after the date such amounts are distributed, the
          Company shall reimburse the Section 16 Insider for all reasonable
          brokerage fees and other transaction costs incurred in connection with
          such purchases upon presentation of satisfactory evidence thereof not
          later than 60 days after the date of each transaction.

     (c)  If any Participant becomes a Section 16 Insider after making a
          Deferral Election under the Plan, any Deferral Account that is being
          credited with a McDonald's Common Stock based return shall
          automatically be converted to any non-McDonald's Common Stock based
          investment return specified by the Participant on an investment
          election form as of the Valuation Date immediately preceding the date
          the Participant is designated a Section 16 Insider by the Board of
          Directors.  This automatic change to non-McDonald's Common Stock based
          returns will be made to preserve the Participant's right to make
          investment choices for investment options that do not involve
          McDonald's Common Stock, make early withdrawals and elect accelerated
          installments under Section 5.3.

     (d)  Elections to invest in McDonald's Common Stock based returns can be
          made by Section 16 Insiders only at the time the Deferral Election is
          made.  Investment elections which would result in a transfer into the
          McDonald's Common Stock based return at a later date are not permitted
          for Section 16 Insiders.

In addition, the Committee may take such other actions as are necessary so that
transactions by Section 16 Insiders do not result in liability under Section
16(b) of the Exchange Act.

     5.6  Beneficiary.  A Participant shall have the right to name a beneficiary
or beneficiaries who shall receive the balance of a Participant's Deferral
Account in the event of the Participant's death prior to the payment of his or
her entire Deferral Account.  A beneficiary may include any person or persons or
an entity (ies) which is tax exempt under Section 501(c)(3) of the Internal
Revenue Code. If no beneficiary is named by a Participant or if he or she
survives all of the named beneficiaries, the Deferral Account shall be paid to
the same beneficiary or beneficiaries to which the Deferral Account would have
been paid if it were in the Participant's Profit Sharing Fund Account under

                                       10
<PAGE>

the Profit Sharing Program as of the date of the Participant's death. To be
effective, any beneficiary designation shall be filed in writing with the
Committee. A Participant may revoke an existing beneficiary designation by
filing another written beneficiary designation with the Committee. The latest
beneficiary designation received by the Committee shall be controlling.

A beneficiary designated by the Participant 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.  Any such beneficiary designation shall be made in accordance
with the provisions of this Section 5.6.

                                   Section 6
                                   ---------
                                 Miscellaneous
                                 -------------

     6.1  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.  Notwithstanding the foregoing, the Company may maintain one
or more trusts ("Trust") to hold assets to be used for payment of benefits under
the Plan.  Any payments by a Trust of benefits provided to a Participant under
the Plan shall be considered payment by the Company and shall discharge the
Company of any further liability under the Plan for such payments.

     6.2  Account Statements.  The Company shall provide Participants with
statements of the balance of their Deferral Accounts under the Plan at least
annually.  The Committee may, in their discretion, also issue statements as of
the March 31, June 30, September 30 and December 31 Valuation Dates, or as of
any other Valuation Date that the Committee deems appropriate.

     6.3  Employment Rights.  Establishment of the Plan shall not be construed
to give any Eligible Employee the right to be retained in the Company's service
or to any benefits not specifically provided by the Plan.

     6.4  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 5.6, 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,

                                       11
<PAGE>

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.

     6.5  Forfeitures and Unclaimed Amounts.  Unclaimed amounts shall consist of
the amount of the Deferral 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 (2) years after the Payment Date upon which the payment of benefits become
due. Unclaimed amounts shall be forfeited at the end of such two-year period.
Penalties charged for withdrawals under Section 5.3 shall also be forfeited in
the year in which the penalty is charged.  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 Deferral Account.

     6.6  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 ERISA.

     6.7  Action by the Company.  Except as otherwise specifically provided
herein, 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.

                                   Section 7
                                   ---------
                             Employer Participation
                             ----------------------

     7.1  Adoption of Plan.  Any subsidiary or affiliate of the Company
("Employer") may, with the approval of the Committee and under such terms and
conditions as the Committee may prescribe, adopt the corresponding portions of
the Plan by resolution of its board of directors.  The Committee may amend the
Plan as necessary or desirable to reflect the adoption of the Plan by an
Employer, provided however, that an adopting Employer shall not have the
authority to amend or terminate the Plan under Section 8.

     7.2  Withdrawal from the Plan by Employer.  Any such Employer shall have
the right, at any time, upon the approval of and under such conditions as may be
provided by the Committee, to withdraw from the Plan by delivering to the
Committee written notice of its election so to withdraw.  Upon receipt of such
notice by the Committee, the

                                       12
<PAGE>

portion of the Deferral Accounts of Participants and beneficiaries attributable
to credits made while the Participants were employees of such withdrawing
Employer, plus any net earnings, gains and losses on such credits, shall be
distributed from the Trust at the direction of the Committee in cash at such
time or times as the Committee, in its sole discretion, may deem to be in the
best interest of such employees and their beneficiaries. To the extent the
amounts held in the Trust for the benefit of such Participants and beneficiaries
are not sufficient to satisfy the Employer's obligation to such Participants and
their beneficiaries accrued on account of their employment with the Employer,
the remaining amount necessary to satisfy such obligation shall be an obligation
of the Employer, and the Company shall have no further obligation to such
Participants and beneficiaries with respect to such amounts.

                                   Section 8
                                   ---------
                           Amendment and Termination
                           -------------------------

The Company intends the Plan to be permanent, but reserves the right at any time
by action of its Board of Directors or the Committee to modify, amend or
terminate the Plan, provided however, that any amendment or termination of the
Plan shall not reduce or eliminate any Deferral Account accrued through the date
of such amendment or termination. The Committee shall provide notice of
amendments adopted by the Committee to the Board of Directors of the Company on
a timely basis.

     Executed in multiple originals this 15th day of December 2000.

                                   McDONALD'S CORPORATION

                                          /S/ Stanley R. Stein
                                          ------------------------
                                   By:    Stanley R. Stein
                                          ------------------------
                                   Title: Executive Vice President
                                          ------------------------

                                       13

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