McKesson 2005 Annual Report Download - page 167

4. Executives Removed from Participation. Except as otherwise approved by the Administrator in writing and at his or her sole discretion,
no survivor benefits shall be paid under this Section D to any Beneficiary of an Executive (i) who has elected not to participate under
Section C.2 or (ii) who has been removed from Plan participation prior to his or her death, or (iii) subject to Section E below, with respect to
whom the Plan has been terminated prior to his or her death.
5. Designation of Beneficiary. A Participant may designate any person(s) or any entity as his or her Beneficiary. Designation shall be in
writing and shall become effective only when filed with the Administrator. Such filing must occur before the Participant’s death. A Participant
may change the Beneficiary, from time to time, by filing a new written designation with the Administrator. Effective January 1, 2003, if the
Participant fails to effectively designate a Beneficiary in accordance with the Administrator’s procedures or the person designated by the
Participant is not living at the time the distribution is to be made, then the Participant’s Beneficiary shall be the Participant’s surviving spouse,
if any, or, if there is no surviving spouse, the Participant’s surviving children, if any, in equal shares, or if there are no surviving children, his or
her estate.
E. TERMINATION OF EMPLOYMENT OTHER THAN ON APPROVED RETIREMENT OR DEATH
1. Basic Rule.
a. In the event of the death of an Executive after his or her termination of employment with the Company other than on Approved
Retirement and except as provided in Section E.2 below, the Company shall pay Executive’s Beneficiary a lump sum equal to (i) an amount
calculated using the formula in Section D.2 above, subject to the limitations of Section D.3 above, (ii) multiplied by the Executive’s Pro Rata
Percentage, and (iii) reduced by the amount provided in Section E.1.c below. Except as otherwise approved by the Administrator in writing and
at his or her sole discretion, final Annual Base Salary shall be determined as of the date of the Executive’s termination of employment, for
purposes of this Section E.1.a. The application of this Section E.1.a is illustrated in Appendix II to the Plan.
b. In the event of the death of an Executive after the Executive has been removed from Plan participation in accordance with Section C.4
(“removal”) or with respect to whom the Plan has been terminated in accordance with Section E (“Plan termination”) prior to his or her
termination of employment, and except as provided in Section E.2 below, the Company shall pay Executive’s Beneficiary a sum equal to the
amount calculated as provided in Section E.1.a above, but treating the Executive’s date of “removal” or the date of the “Plan termination”,
whichever is applicable, as his or her date of termination of employment for purposes of calculating his or her Pro Rata Percentage and his or
her final Annual Base Salary.
c. Any amount determined under Section E.1.a or Section E.1.b shall be reduced by any death or survivor benefit (other than a retirement
benefit paid under a tax qualified retirement plan) payable on account of service rendered by the Executive to another employer after his or her
termination of employment with the Company.
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