McKesson 2005 Annual Report Download - page 147

F. TERMINATION BEFORE APPROVED RETIREMENT
1. Basic Rule.
a. Termination Benefits. Subject to other applicable provisions in this Plan, an Executive who terminates employment with the
Company other than on Approved Retirement or death shall be entitled to receive, beginning at age 65, monthly payments equal to his
Termination Benefits. An Executive’s Termination Benefits are equal to (1) the applicable percentage of Average Final Compensation under
Section D.1.a., multiplied by the Executive’s Pro Rata Percentage and reduced by (2) the Executive’s Basic Retirement Benefits at the later of
age 65 or the date of actual termination. See Appendix C for an example of this calculation.
b. Plan Termination or Removal from Participation. An Executive who terminates employment with the Company other than on
Approved Retirement or death and who has been removed from Plan participation (“removal”) or with respect to whom the Plan has terminated
prior to his or her termination of employment (“termination”) shall be entitled to receive, beginning at age 65, monthly payments determined
under this Section F but treating the date of “removal” or “termination”, whichever is applicable, as the date of termination of employment for
purposes of calculating the Executive’s Pro Rata Percentage and Average Final Compensation.
c. Reduction for Subsequent Employer Benefits. Any amount payable under Section F.1.a or b shall be reduced by any retirement
benefit payable to the Executive or the Executive’s beneficiary on account of service rendered to another employer after the Executive’s
termination of employment with the Company.
2. Limitations. No benefits shall be paid under this Section F to:
a. Termination for Cause. An Executive who is terminated for Cause. If the Executive has a written employment agreement, Cause
shall be determined in accordance with that agreement. Otherwise, Cause shall be determined by the Administrator.
b. Violation of Employment Agreement. An Executive who terminates employment in violation of a written employment agreement (if
any). Termination is in violation of an employment agreement if termination occurs before the end of the term of that contract and is not
allowed by the agreement (e.g., for “good reason”).
c. No Vested Interest. An Executive who has not at the time of his or her termination of employment with the Company (i) completed
five Years of Service or (ii) attained age 65, or if later, the fifth anniversary of participation in the Plan (or, in the case of an Executive who was
terminated prior to April 26, 1999, an Executive who had no vested interest in benefits under the Retirement Plan at the time of his or her
termination of employment with the Company) shall have no vested interest in benefits under the Plan and upon termination of employment
with the Company shall forfeit any benefit the Executive had accrued under the Plan. For purposes of the foregoing, Years of Service before a
Break in Service shall not be counted if the consecutive one-year Breaks in Service equal or exceed the greater of five or the aggregate number
of Years of Service before the Break in Service. An Executive who would have such a vested interest (1) if the Executive’s employment was
not terminated by the
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