McKesson 2005 Annual Report Download - page 210

2. COBRA Contributions. Individuals who have COBRA Continuation Coverage under Section H, shall be required to make COBRA
Contributions as provided therein. The amount of COBRA Contributions shall be determined by the Company, in the manner provided by
Section I.5.A, and the Company shall communicate any change in these amounts to individuals who are required to contribute.
3. Required Contributions. Each Executive who is receiving compensation from the Company or a subsidiary or affiliate under the regular
Payroll shall make any required contributions to the Plan by Payroll deductions. Each other Executive shall make any required contributions to
the Plan on a monthly or quarterly basis or in such other manner as determined by the Company. The Company will remit such contributions to
the Insurance Company as necessary to pay required premiums under the Insurance Contract. The amount of an Executive’s required
contributions shall be determined by the Company on the basis of premiums due under the Insurance Contract. The Company shall
communicate any change in the amount of an Executive’s required contributions to such individuals from time to time.
4. Company Contributions. The Company shall contribute to the Plan such amounts as are necessary to pay required premiums under the
Insurance Contract or any reasonable administrative expenses of the Plan not paid by the Insurance Company. Except to the extent used to pay
the reasonable administrative expenses of the Plan, all Company Contributions shall be remitted to the Insurance Company in accordance with
the terms of the Insurance Contract.
5. Payment of Expenses. The Company shall pay all expenses of the Plan except for such expenses as are paid by the Insurance Company
pursuant to the terms of the Insurance Contract or any other agreement between the Insurance Company and the Company. The Company, or
its delegate, shall have sole discretion to determine whether an expense of the Plan shall be paid by the Company or the Insurance Company,
subject to the terms of the Insurance Contract or any other agreement between the Insurance Contract and the Company.
6. Limitation of Liability. No liability for the payment of benefits under the Plan shall be imposed upon the Compensation Committee, the
Company or its Officers, members of its Board of Directors or shareholders.
N. ADMINISTRATION OF THE PLAN
1. In General. The Plan shall be administered by the Senior Vice President, Human Resources of McKesson. If the Senior Vice President,
Human Resources is an Executive participating in the Plan, then any discretionary action he or she takes as Administrator which directly
affects him or her as an Executive shall be specifically approved by the Compensation Committee. The Administrator shall have the ultimate
responsibility to interpret the Plan and shall adopt such rules and regulations for carrying out the Plan as it may deem necessary or appropriate.
Decisions of the Administrator shall be final and binding on all parties who have an interest in the Plan.
2. Elections and Notices. All elections and notices made by an Executive under this Plan shall be in writing and filed with the
Administrator.
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