McKesson 2005 Annual Report Download - page 96

5. Change in Election of Form and Time of Payment. Subject to the provisions of Section E.4 above, a Participant may change a previous
election as to form and time of payment of benefits by completing in writing and filing with the Administrator a new election of form and time
of payment of benefits under this Plan from the following:
a. Form.
i. Payment of the amount credited to the Participant’s Account in a single sum.
ii. Payment of amounts credited to the Participant’s Account in any specified number of approximately equal annual installments (not
in excess of ten).
b. Time.
i. The lump sum or first installment to be paid in January of the year designated by the Participant.
ii. The lump sum or first installment to be paid in January after the designated interval following the earlier of the Participant’s
Retirement or of the determination of Disability.
6. Payments on Termination. If a Participant terminates service with the Company for any reason other than Retirement, Disability or
death, then, notwithstanding the election made by the Participant pursuant to Sections E.4 and E.5 above, the entire undistributed amount
credited to his or her Account shall be paid in the form of a lump sum in the January of the calendar year following the calendar year of
termination of service.
7. Payments on Death.
a. On and after January 1, 2003, each Participant shall make an election at the time of any election to defer compensation under the Plan
of the time and form in which any amount remaining in the Participant’s Account at the time of the Participant’s death shall be paid to his or
her Beneficiary. Such election shall be made in writing and filed with the Administrator. Benefits shall be paid in one of the forms specified in
Section E.5. The Participant may modify such election at any time up until the date of the Participant’s death in a writing filed with the
Administrator. In addition, within one year following the death of the Participant the Beneficiary may elect to receive payment in a lump sum;
provided, however, that such election shall not take effect until 12 months after the date it is made, and payment otherwise scheduled to be
made in that 12-month period shall be made on schedule. The foregoing notwithstanding, the Administrator may, at his or her discretion,
distribute all benefits to a Beneficiary in a single payment as soon as reasonably practicable after the death of the Participant if the value of the
Participant’s Account is less than $5,000 on the date of death of the Participant.
b. Prior to January 1, 2003, if a Participant died after payments from his or her Account had begun, the remainder of the amounts
credited to the Participant’s Account was paid to his or her Beneficiary at the same time and in the same manner as they would have been paid
to the Participant had the Participant survived. If a Participant died before payments from his or her Account had begun, the amount credited to
his or her Account was paid to his or her Beneficiary at the time and in the manner elected by the Participant.
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