McDonald's European Communications Group

	McDonald's has always recognized the importance of two-way communications and dialogue with its employees.  Good communications is essential since all McDonald's employees share a common interest in our mutual success.  Our established local communications structures are designed to promote a constructive exchange of ideas and information through such vehicles as communication sessions, employee meetings, employee surveys and magazines for employees.

	McDonald's is known to people the world over.  However, our operations are organized on a purely local and national basis -- we serve one customer at a time, in one restaurant at a time, in each of our communities around the world.  Still, we think it essential to ensure transnational communication on matters such as customer service, quality, training and teamwork that transcend national borders.

	The European Communications Group ("ECG") will focus on transnational issues of this kind likely to have a significant effect on McDonald's restaurants within the EU.  Our aim is continuously to improve the company's processes, competitive position and customer satisfaction.

1.  The ECG will be composed of delegates that are employed by McDonald's and its subsidiaries from participating EU countries, considering that these employees share common interests in the success and future of the company.  The ECG also will include representatives of McDonald's Human Resources Department and the top managers of McDonald's European operations, one of whom shall serve as chairperson.  In addition, the Human Resources Department representatives will be responsible for developing the agenda for meetings.

2.  Using a democratic process, each country will select one or two delegates to participate in the ECG.  The maximum number of delegates to the ECG will be 30; however, if other countries join the EU, then the maximum number of delegates will increase by no more than two per additional country.  Selection of delegates will be determined locally within each country.  Delegates will serve a term of office determined locally in each country, provided they remain employed by McDonald's or its subsidiaries.  Each country may provide for the selection of replacement and alternative delegates.

3.  Delegates selected to participate in the ECG will meet annually. Such meetings may be at a central location or may be conducted through teleconferencing or other methods.  All expenses related to such meetings, including wages and any travel expenses, will be paid for by the company.  Two-way communications and dialogue on appropriate transnational issues of the type referred to below may occur through communications sessions, employee meetings, employee surveys and other appropriate communications vehicles, where such issues are of significance to particular employees.  Matters discussed in this way may also be included in the agenda of the next subsequent meeting of the ECG.

4.  Other countries, including countries which may join the EU in the future, may choose to have representatives attend ECG meetings.  In this case, they will be admitted to the ECG under the conditions described in this document.

5.  Matters to be discussed by the ECG will consist exclusively of subjects of community-wide applicability, such as customer service, quality, people, training, teamwork, new working methods and procedures, environmental issues, products, organizational structure, overall company performance in Europe, overall EU-wide business development, and substantial changes to the organization affecting operations in more than one EU country.  Matters determined locally will not be discussed at ECG sessions.  Employees attending ECG meetings will not disclose any confidential information they learn to others, either within or outside the company.

6.  Information regarding the matters discussed at the meetings will be provided at company expense to employees through appropriate existing communications vehicles, and the Human Resources Department representatives are responsible for accomplishing this.

7.  Local and national communications vehicles are not affected by the existence or activities of the ECG.  Appropriate translation and interpretation will be provided at company expense.  This document constitutes a legally binding agreement.  It will be translated into appropriate languages, and signatures to translated versions will be fully valid.  In the event of a dispute regarding this agreement, including its interpretation, the English version is controlling.

8.  This agreement will commence on the date it has been approved in all of the EU countries.  It will continue in force for a period of four years and will automatically be renewed for successive four year periods unless a two-thirds majority of the chosen members of the ECG decide in writing to terminate or modify the agreement any time within 90 days prior to its expiration.