McKesson 2005 Annual Report Download - page 107

time and in the form specified by the Administrator. On electing to defer compensation under this Plan, the Participant shall be deemed to
accept all of the terms and conditions of this Plan. All elections to defer amounts under this Plan shall be made pursuant to an election executed
and filed with the Administrator before the amounts so deferred are earned.
3. Notification of Participants. The Administrator shall annually notify each Eligible Executive and each Eligible Director that he or she
may participate in the Plan for the next Year. Such notice shall also set forth the Declared Rate for the next Year.
4. Relation to Other Plans.
a. Participation in Other Plans. An Eligible Executive or an Eligible Director may participate in this Plan and may also participate in
any other benefit plan of the Company in effect from time to time for which he or she is eligible, unless the other plan may otherwise exclude
participation on the basis of eligibility for, or participation in, this Plan. No amounts may be deferred under this Plan which have been deferred
under any other plan of the Company. Deferrals under this Plan may result in a reduction of benefits payable under the Social Security Act, the
Retirement Plan and the PSIP.
b. Automatic Deferral. Prior to January 1, 2000 and subject to the last sentence of Section D.2 below, an Eligible Executive who makes
an election to defer compensation under this Plan shall have an additional amount automatically deferred from his or her remaining
compensation. The amount of such additional deferral shall be an amount equal to (x) the amount deferred by the Eligible Executive into the
Plan, multiplied by (y) the percentage rate of the Eligible Executive’s deferrals into the PSIP, as in effect at the beginning of each Year.
Effective as of January 1, 2000, an Eligible Executive’s base salary deferrals and annual bonus award deferrals (but not DCAP housing
deferrals, sign-on and retention bonus deferrals and Long-Term Incentive Plan award deferrals) shall be credited, in a separate Account under
the Plan with an amount calculated to be the Matching Employer Contribution percentage that would have been credited to the Eligible
Executive’s PSIP account if six percent (6%) of such deferrals under DCAP II had been made under the PSIP. For these purposes, Matching
Employer Contribution shall have the meaning defined in the PSIP. (Prior to January 1, 2000, the additional deferrals were credited to the
Eligible Executive’s account in the McKesson Corporation Supplemental PSIP and governed by the terms of that plan.)
D. AMOUNTS OF DEFERRAL
1. Minimum Deferral. The minimum amount that an Eligible Executive may defer under this Plan for any Year is $5,000 of base salary, or
$5,000 of any annual bonus award(s) and $5,000 of any Long-Term Incentive Plan award. The minimum amount of compensation that an
Eligible Director may defer for any Year is $5,000.
2. Maximum Deferral for Eligible Executives. The maximum amount of compensation which an Eligible Executive may defer under this
Plan for any Year is (i) 75% (80% prior to January 1, 2000) of the amount of such Eligible Executive’s base salary for such Year, and (ii) 90%
(100% prior to January 1, 2002) of any annual bonus award and/or any Long-Term Incentive Plan award determined and payable to him or her
in such Year. Additionally,
2