McKesson 2005 Annual Report Download - page 121

3. Relation to Other Plans. An Eligible Executive or an Eligible Director may participate in this Plan and may also participate in any other
benefit plan of the Company in effect from time to time for which he or she is eligible, unless the other plan may otherwise exclude
participation on the basis of eligibility for, or participation in, this Plan. No amounts may be deferred under this Plan which have been deferred
under any other plan of the Company.
D. AMOUNTS OF DEFERRAL
1. Minimum Deferral. The minimum amount that an Eligible Executive or Eligible Director may defer under this Plan is $5,000 of the
Cash Gain realized upon the completion of the Transaction.
2. Maximum Deferral. The maximum amount of compensation which an Eligible Executive or an Eligible Director may defer under this
Plan for any Year is one hundred percent (100%) of the Cash Gain realized upon the completion of the Transaction. Notwithstanding these
limits, deferrals may be reduced by the Company to leave sufficient remaining amounts legally required for taxes and other authorized
deductions. In addition, the amount of deferrals allowed to any Participant may be subject to a limit determined by the Administrator.
E. PAYMENT OF DEFERRED COMPENSATION
1. Book Account and Interest Credit. Any Cash Gain deferred by a Participant under the Plan shall be credited to a separate bookkeeping
account for such Participant (the “Account”). From the initial effective date of the Plan (January 27, 1994) through the end of Year 1994,
interest was credited to each Account at an annual rate of 7.5%. Thereafter, the interest rate is set each year to the Moody’s Corporate Bond
Yield Average for December of the preceding year (the “Declared Rate”). Notwithstanding the foregoing, if a Change in Control (as defined in
Section E.10 below) occurs, the Declared Rate for the balance of the calendar year in which the Change in Control occurs and for the two
calendar years immediately following the year in which the Change in Control occurs shall not be less than the Declared Rate as in effect on
the day before the Change in Control occurs. Interest on each Account balance shall be compounded daily on each business day within the
Year to yield the Declared Rate for the Year. (Prior to January 1, 2000, each Account balance was compounded monthly based on the annual
Declared Rate.) In the case of installment payments as provided in Section E.3 below, interest shall be credited on all amounts remaining in a
Participant’s Account until all amounts are paid out.
2. Length of Deferral. An Eligible Executive or Eligible Director shall elect in writing, and file with the Administrator, at the same time as
such Eligible Executive or Eligible Director makes any election to defer any portion of the Cash Gain, the period of deferral with respect to
such election, subject to the minimum required period of deferral and the maximum permissible period of deferral. The minimum required
period of deferral is two years from the date the compensation is deferred. Notwithstanding the foregoing, the two-year minimum deferral
period shall not apply to payments made as a result of death, Disability, Retirement, pre-Retirement termination or hardship. Payment must
commence no later than the end of the maximum period of deferral, which is the January following the year in which the Eligible Executive
attains age 72 or, in the case of an Eligible Director, the January after the Company’s
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