McKesson 2005 Annual Report Download - page 94

McKESSON CORPORATION
DEFERRED COMPENSATION ADMINISTRATION PLAN
(Amended and Restated as of October 28, 2004)
A. PURPOSE
This Plan was established to provide a select group of executives employed by the Company an opportunity to defer for later payment
amounts earned as compensation. Since its original effective date, the Plan has been amended and restated on various occasions. This
amendment and restatement has been approved by the Board as of October 28, 2004 and shall be effective as of such date except as indicated
otherwise below.
B. ERISA PLAN
This Plan is an unfunded deferred compensation program intended primarily for a select group of management or highly compensated
employees of the Company and members of the Board who are not employees of the Company. The Plan, therefore, is covered by Title I of
ERISA except that it is exempt from Parts 2, 3 and 4 of Title I of ERISA.
C. PARTICIPATION AND DEFERRALS
This Plan and participation in the Plan were frozen as of January 1, 1994. No individual who was not a Participant in the Plan prior to
January 1, 1994 shall become a Participant in this Plan.
D. AMOUNTS OF DEFERRAL
No new deferrals shall be made under this Plan on and after January 1, 1994. Deferrals made prior to such date were governed by the Plan
as in effect at that time.
E. PAYMENT OF DEFERRED COMPENSATION
1. Election of Account. Each Participant’s deferred compensation shall be credited to a separate bookkeeping account of McKesson
maintained for such Participant (the “Account”). The Participant may elect that deferrals be credited either to the “Retained Account” or the
“Stock Account” as defined below. All such elections shall be irrevocable.
2. Retained Account.
a. The Retained Account shall accrue interest during each calendar year equal to the median yield of all non-convertible debt issues
coming to market during the twelve-month period ending one month prior to the end of the month in which the election instructions are issued
in the prior fiscal year from companies rated A (includes A- and A+), as reported by the Standard & Poor’s Monthly Bond Guides in its
calendar of new offerings. The rate of interest so determined shall be applied to each Participant’s entire Retained Account balance. The
Retained Account balance shall be compounded at the end of each calendar year by the annual rate of interest so determined.
b. Notwithstanding Section E.2.a, above, beginning January 1, 1994, all deferrals made by a Participant into his or her Retained Account
after 1992 shall earn interest at the same rate as deferrals to the McKesson Deferred Compensation Administration Plan II (“DCAP II”) (the
“Declared Rate”). Notwithstanding the foregoing, if a Change in Control (as defined in Section E.12 below) occurs, the Declared Rate for the
balance of the calendar year in
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