McKesson 2005 Annual Report Download - page 110

such election shall not take effect until 12 months after the date it is made, and payment otherwise scheduled to be made in that 12-month
period shall be made on schedule. The foregoing notwithstanding, the Administrator may, at his or her discretion, distribute all benefits to a
Beneficiary in a single payment as soon as reasonably practicable after the death of the Participant if the value of the Participant’s Account is
less than $5,000 on the date of death of the Participant.
b. Prior to January 1, 2003, if a Participant died after payments from his or her Account had begun, the remainder of the amounts
credited to the Participant’s Account was paid to his or her Beneficiary at the same time and in the same manner as they would have been paid
to the Participant had the Participant survived. If a Participant died before payments from his or her Account had begun, the amount credited to
his or her Account was paid to his or her Beneficiary at the time and in the manner elected by the Participant.
6. Designation of Beneficiary. A Participant may designate any person(s) or any entity as his or her Beneficiary. Designation shall be in
writing and shall become effective only when filed with the Administrator. Such filing must occur before the Participant’s death. A Participant
may change the Beneficiary, from time to time, by filing a new written designation with the Administrator. Effective January 1, 2003, if the
Participant fails to effectively designate a Beneficiary in accordance with the Administrator’s procedures or the person designated by the
Participant is not living at the time the distribution is to be made, then the Participant’s Beneficiary shall be the Participant’s surviving spouse,
if any, or, if there is no surviving spouse, the Participant’s surviving children, if any, in equal shares, or if there are no surviving children, the
Participant’s estate.
7. Payments on Disability. If the Administrator determines that a Participant has become Disabled, the entire undistributed amount credited
to his or her Account shall be paid in the form and at the time elected by the Participant, or, if no election has been made, in a lump sum as
soon as practicable after such determination is made.
8. Payments on Hardship. The Administrator may, in his or her sole discretion, direct payment to a Participant of all or of any portion of
the Participant’s Account balance, notwithstanding an election under Section E.3 above, at any time that he or she determines that such
Participant has suffered an event of undue hardship which causes an emergency condition in the Participant’s financial affairs.
9. Other Withdrawals. Effective June 1, 2000 and subject to approval by the Administrator, a Participant may elect to receive a withdrawal
of all or part of the Participant’s Account under the Plan at any time not otherwise expressly authorized pursuant to the terms of the Plan;
provided, however, that ten percent (10%) of the amount of the withdrawal requested shall be permanently forfeited to the Company and the
Participant shall have no further right to that amount. The terms of such withdrawal shall be governed by the provisions of the Participant’s
election form in effect at the time of such election to the extent not otherwise specified in the Participant’s election made pursuant to this
Section E.9.
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