McKesson 2005 Annual Report Download - page 133

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. Prior to January 1, 1994, an Eligible Executive or Eligible Director elected in writing and filed with the
Administrator, at the same time as such Eligible Executive or Eligible Director made any election to defer compensation, 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 five years after the end of the Year for which compensation is deferred. Notwithstanding the foregoing,
the five-year minimum deferral period shall not apply to payments made as a result of death, Disability, Retirement, pre-retirement termination,
a Change in Control 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 McKesson’s annual
meeting of stockholders next following the Eligible Director’s 72nd birthday. An Eligible Executive or Eligible Director may alter the period
of deferral, provided that:
a. such alteration is made at least one year prior to the earliest date the Participant could have received distribution of the amounts
credited to his or her Account under the earlier election, and
b. such alteration does not provide for the receipt of such amounts earlier than one year from the date of the alteration, subject to the
five-year minimum deferral rule stated above.
3. Change in Election of Form and Time of Payment. Subject to the provisions of Section E.2 above, a Participant may change a previous
election as to form and time of payment of benefits by completing in writing and filing with the Administrator a new election of form and time
of payment of benefits under this Plan from the following:
a. Form.
i. Payment of the amount credited to the Participant’s Account in a single sum.
ii. Payment of amounts credited to the Participant’s Account in any specified number of approximately equal annual installments (not
in excess of ten).
b. Time.
i. The lump sum or first installment to be paid in January of the year designated by the Participant.
ii. The lump sum or first installment to be paid in January after the designated interval following the earlier of the Participant’s
Retirement or of the determination of Disability.
4. Payments on Termination. If a Participant terminates service with the Company for any reason other than Retirement, Disability or
death, then, notwithstanding the election made by the Participant pursuant to Sections E.2 and E.3 above, the entire undistributed amount
credited to his or her Account shall be paid in the form of a lump sum in the January of the calendar year following the calendar year of
termination of service.
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