McKesson 2005 Annual Report Download - page 148

Company in violation of the Executive’s employment agreement or (2) if the Executive’s employment was not terminated for “good reason”
under such agreement, shall be treated as having such a vested interest. This Section F.2 shall not apply to any Executive who was a participant
in this Plan on September 29, 1993. The foregoing notwithstanding, effective January 30, 2002, the Compensation Committee may in its sole
discretion waive the five Years of Service requirement and confer vested rights on any Executive.
3. Pro Rata Percentage. An Executive’s Pro Rata Percentage is the higher of the following two percentages (but not greater than 100%).
The first percentage is determined by dividing the number of the Executive’s whole months of employment with the Company by the number
of whole months from the date that the Executive was first hired by the Company to the date that the Executive will reach age 65 and
multiplying by 100. The second percentage is determined by multiplying 4.44% by the number of the Executive’s whole and partial years of
completed employment with the Company.
4. Rules of Application.
a. Periods of Employment. Effective April 26, 1999, for purposes of determining employment with the Company, Years of Service
before a Break in Service (and, at the discretion of the Administrator, any other periods of Service that would be disregarded under the
Retirement Plan) shall not be counted under this Section F if the consecutive one-year Breaks in Service equal or exceed the greater of five or
the aggregate number of the Executive’s Years of Service before the Break in Service.
b. Basic Retirement Benefits. For purposes of this Section F, an Executive’s Basic Retirement Benefits shall be determined at the time
that the Executive terminates employment with the Company, calculating all benefits as if they were payable in the form of a straight life
annuity beginning at the later of age 65 or the date of actual termination of employment, without survivor benefits.
c. Method of Payment. Benefits under this Section shall be paid in the form provided in Section H.
d. Date Benefits Begin. Benefits payable under this Section shall begin on the first day of the month following the date the Executive
reaches age 65.
e. Death Benefits. For purposes of this Section:
If an Executive dies after benefits have begun, benefits payable thereafter, if any, shall be paid in accordance with the method of
payment determined under Section H.
If an Executive who has terminated employment and is entitled to receive benefits under this Section F dies before benefits begin, the
Executive’s beneficiary shall receive the monthly benefit payable under an actuarially reduced form of joint and 100% survivor annuity with
the Executive’s beneficiary as the contingent annuitant, payable beginning on the first day of the month after the Executive would have reached
age 65. The principles of the second and third sentences of Section E.2.a and the principles of Section E.2.b and of this Section shall apply for
calculating these survivor benefits.
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