McKesson 2005 Annual Report Download - page 166

not participate in any other survivor benefit or life insurance plan or similar program solely for Company Executives unless otherwise
specifically approved by the Administrator in writing. For example, any Executive who participates in this Plan shall not receive any life
insurance benefits under the McKesson Corporation 1984 Executive Insurance Plan, or its predecessor, the McKesson Executive Benefit Plan.
This provision shall not preclude the Executive’s participation in any Company retirement plan, compensation plan, deferred compensation
plan, excess benefit plan, any group life insurance or survivor benefit plan made generally available by the Company to all employees. This
provision shall not preclude the payment of survivor benefits which are earned and payable under any Company retirement plan.
D. SURVIVOR BENEFITS
1. Death of Executive While Employed. In the event of the death of an Executive while employed by the Company and except as provided
in Sections D.3 and D.4 below, the benefit provided by the Plan and payable to the Executive’s Beneficiary as soon as practicable thereafter
shall be a lump sum equal to the lesser of (a) three times the Annual Base Salary of the Executive at the time of death, or (b) $2,000,000. The
benefit shall be provided to the Executive’s Beneficiary either through the proceeds of life insurance owned by the Company on the
Executive’s life or as a lump sum cash payment from the general assets of the Company. In the later case, the benefit amount shall be increased
by multiplying it by the Tax Factor. The application of this Section D.1 is illustrated in Appendix I to the Plan.
2. Death of Executive After Approved Retirement. In the event of the death of an Executive after his or her Approved Retirement and
except as provided in Sections D.3 and D.4 below, the benefit provided by the Plan and payable to the Executive’s Beneficiary as soon as
practicable thereafter shall be a lump sum equal to the lesser of (a) 1.5 times the Annual Base Salary of the Executive at retirement, and (b) (i)
$500,000 for an Executive who retires on or before January 1, 1997, or (ii) $1,000,000 for an Executive who retires after January 1, 1997. The
benefit shall be provided to the Executive’s Beneficiary either through the proceeds of life insurance owned by the Company on the
Executive’s life or as a lump sum cash payment from the general assets of the Company. In the latter case, the benefit amount shall be
increased by multiplying it by the Tax Factor.
3. Limitations on Benefits. No survivor benefits shall be paid under this Section D in the following circumstances:
a. The Administrator shall determine in his or her discretion that Executive has provided false or misleading information regarding
Executive’s health or medical history that materially adversely affects the Company, or
b. The Administrator shall determine in his or her discretion that Executive has committed suicide.
For purposes of this Section D.3, the Administrator in his or her discretion may waive in writing the foregoing limitations in whole or in
part, and all determinations by the Administrator shall be final.
2