Document:

exv10w14

EXHIBIT 10.14

McKESSON CORPORATION

2005 MANAGEMENT INCENTIVE PLAN

Amended and Restated Effective April 20, 2010

 

 

Table of Contents

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 Page	 
	 	A.	 	 	NAME; EFFECTIVE TIME
	 	 	1	 
	 	B.	 	 	PURPOSE
	 	 	1	 
	 	C.	 	 	ADMINISTRATION
	 	 	1	 
	 	D.	 	 	PARTICIPATION
	 	 	2	 
	 	E.	 	 	INDIVIDUAL TARGET AWARDS FOR PARTICIPANTS
	 	 	2	 
	 	F.	 	 	BASIS OF AWARDS
	 	 	3	 
	 	G.	 	 	AWARD DETERMINATION
	 	 	4	 
	 	H.	 	 	PROCEDURES APPLICABLE TO COVERED EMPLOYEES
	 	 	4	 
	 	I.	 	 	PAYMENT OF AWARDS
	 	 	5	 
	 	J.	 	 	EMPLOYMENT ON PAYMENT DATE
	 	 	5	 
	 	K.	 	 	CHANGE IN CONTROL
	 	 	6	 
	 	L.	 	 	FORFEITURE
	 	 	6	 
	 	M.	 	 	RECOUPMENT
	 	 	8	 
	 	N.	 	 	WITHHOLDING TAXES
	 	 	8	 
	 	O.	 	 	EMPLOYMENT RIGHTS
	 	 	8	 
		P.	 	 	NONASSIGNMENT; PARTICIPANTS ARE GENERAL CREDITORS
	 	 	8	 
	 	Q.	 	 	AMENDMENT OR TERMINATION
	 	 	8	 
	 	R.	 	 	SUCCESSORS AND ASSIGNS
	 	 	9	 
	 	S.	 	 	GOVERNING LAW
	 	 	9	 
	 	T.	 	 	INTERPRETATION AND SEVERABILITY
	 	 	9	 
	 	U.	 	 	DEFINITIONS
	 	 	9	 
	 	V.	 	 	EXECUTION
	 	 	12	 

i. 

 

McKESSON CORPORATION

2005 MANAGEMENT INCENTIVE PLAN

Amended and Restated Effective April 20, 2010

A. NAME; EFFECTIVE TIME

     The name of this plan is the McKesson Corporation 2005 Management Incentive Plan. The Plan
replaces in its entirety the Company’s 1989 Management Incentive Plan. On May 25, 2005, the Board
adopted the Plan, effective for fiscal years of the Company commencing on and after April 1, 2005,
with such adoption subject to stockholder approval, which was granted on July 27, 2005. The
Committee subsequently amended and restated the Plan on and effective October 27, 2006, amended and
restated the Plan on October 24, 2008, effective January 1, 2009, and amended and restated the Plan
on and effective April 20, 2010.

B. PURPOSE

     The purpose of the Plan is to advance and promote the interests of the Company and its
stockholders by providing performance-based incentives to certain employees and to motivate those
employees to set and achieve above-average financial and non-financial objectives.

C. ADMINISTRATION

     The Committee shall have full power and authority, subject to the provisions of the Plan,
(i) to designate employees as Participants for any Performance Period, (ii) to add and delete
employees, subject to the eligibility requirement set forth in paragraph D.1 below, from the list
of designated Participants, (iii) to establish Individual Target Awards for Participants, (iv) to
establish performance goals upon achievement of which the Individual Target Awards will be based,
and (v) to take all action in connection with the foregoing or in relation to the Plan as it deems
necessary or advisable. Decisions and selections of the Committee shall be made by a majority of
its members and, if made pursuant to the provisions of the Plan, shall be final.

     Notwithstanding the foregoing, the Committee may delegate to the Chief Executive Officer (the
“CEO”) the power and authority, subject to the provisions of the Plan, (i) to designate employees
who are not members of the Officer Group as Participants, (ii) to recommend members of the Officer
Group to the Committee for designation as Participants; provided that the Committee shall review
and approve members of the Officer Group as Participants recommended by the CEO, (iii) to add and
delete employees who are not members of the Officer Group, subject to the eligibility requirement
set forth in paragraph D.1 below, from the list of designated Participants, (iv) to establish
Individual Target Awards for Participants who are not members of the Officer Group, (v) to
establish performance goals upon achievement of which such Individual Target Awards will be based,
and (vi) to review and approve, modify or disapprove, or otherwise adjust or

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determine the amount, if any, to be paid to Participants who are not members of the Officer
Group for the applicable Performance Period based on such Participants’ performance goals and
individual performance. In addition to the forgoing, the CEO may further delegate his authority to
other executive offices of the Company, except that the CEO may not delegate his authority to
recommend members of the Officer Group to the Committee for designation as Participants.
References to the Committee herein shall include references to the CEO and his designees to the
extent that the Committee has delegated power and authority under the Plan to the CEO and to the
extent that the CEO has further delegated power and authority under the Plan to other executive
officers of the Company.

     The Committee may promulgate such rules and regulations as it deems necessary for the proper
administration of the Plan and the CEO (but not his designees) may promulgate rules and regulations
as he deems necessary for the proper administration of the Plan with respect to Participants who
are not members of the Officer Group. The Committee may interpret the provisions and supervise the
administration of the Plan, and take all action in connection therewith or in relation to the Plan
as it deems necessary or advisable. The interpretation and construction by the Committee of any
provision of the Plan or of any award shall be final.

D. PARTICIPATION

	 	1.	 	Eligibility—Executives, Managers and Professionals

     Only active employees of the Company who are employed in an executive, managerial or
professional capacity may be designated as Participants under the Plan.

	 	2.	 	Designation of Participants

     No person shall be entitled to any award under the Plan for any Performance Period unless he
or she is so designated as a Participant for that Performance Period.

E. INDIVIDUAL TARGET AWARDS FOR PARTICIPANTS

     At the beginning of each Performance Period, the Committee shall establish an Individual
Target Award for each Participant. An Individual Target Award shall only be a target and the
amount of the target may or may not be paid to the Participant. Establishment of an Individual
Target Award for an employee for any Performance Period shall not imply or require that an
Individual Target Award or an Individual Target Award at any specified level will be set for any
subsequent year. The amount of any actual award paid to any Participant may be greater or less
than this target. As set forth in paragraph G.4 below (but subject to the limitations applicable
to Covered Employees contained in Article H), the actual award may be as much as three times target
or as low as zero for any Performance Period. The Individual Target Award may be established for
a Participant by name, job level, position or any other similar identifier.

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F. BASIS OF AWARDS

	 	1.	 	Performance Goals

     The Committee shall establish measures, which may include financial and non-financial
objectives (“Performance Goals”) for each segment of the Company. These Performance Goals shall be
determined by the Committee in advance of each Performance Period or within such period as may be
permitted by the regulations issued under Section 162(m), and to the extent that awards are paid to
Covered Employees, the performance criteria to be used shall be any of the following, either alone
or in any combination, which may be expressed with respect to the Company or one or more operating
units or groups, as the Committee may determine: cash flow; cash flow from operations; total
earnings; earnings per share, diluted or basic; earnings per share from continuing operations,
diluted or basic; earnings before interest and taxes; earnings before interest, taxes,
depreciation, and amortization; earnings from operations; net asset turnover; inventory turnover;
capital expenditures; net earnings; operating earnings; gross or operating margin; debt; working
capital; return on equity; return on net assets; return on total assets; return on investment;
return on capital; return on committed capital; return on invested capital; return on sales; net or
gross sales; market share; economic value added; cost of capital; change in assets; expense
reduction levels; debt reduction; productivity; stock price; customer satisfaction; employee
satisfaction; and total shareholder return.

	 	2.	 	Adjustment Of Performance Goals

     The Committee may determine Performance Goals on an absolute basis or relative to internal
goals or relative to levels attained in prior years or related to other companies or indices or as
ratios expressing relationships between two or more Performance Goals. In addition, Performance
Goals may be based upon the attainment of specified levels of Company performance criteria under
one or more of the measures described above relative to the performance of other corporations or a
designated comparison group. The Committee shall specify the manner of adjustment of any
Performance Goal to the extent necessary to prevent dilution or enlargement of any award as a
result of extraordinary events or circumstances, as determined by the Committee, or to exclude the
effects of extraordinary, unusual, or non-recurring items; changes in applicable laws, regulations,
or accounting principles; currency fluctuations; discontinued operations; non-cash items, such as
amortization, depreciation, or reserves; asset impairment; or any recapitalization, restructuring,
reorganization, merger, acquisition, divestiture, consolidation, spin-off, split-up, combination,
liquidation, dissolution, sale of assets, or other similar corporate transaction.

	 	3.	 	Performance Goals Related To More Than One Segment Of The Company

     Awards may be based on performance against objectives for more than one segment of the
Company. For example, awards for corporate management may be based on overall corporate
performance against objectives, but awards for a unit’s management may be based on a combination of
corporate, unit and sub-unit performance against objectives.

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	 	4.	 	Performance Period; Individual Performance

     The Committee shall specify the Performance Period over which period Performance Goals will be
measured and determined.

     Subject to the limitations set forth in Article H below, individual performance of each
Participant may be measured and used in determining awards under the Plan.

G. AWARD DETERMINATION

	 	1.	 	Award Determined By Committee

     After any Performance Period for which an Individual Target Award is established for a
Participant under the Plan, the Committee shall review and approve, modify or disapprove the
amount, if any, to be paid to the Participant for the Performance Period. The amount paid shall be
the Individual Target Award adjusted to reflect both the results against the Participant’s
Performance Goals and the Participant’s individual performance. Subject to Article H, all awards
are subject to adjustment at the sole discretion of the Committee.

	 	2.	 	Financial And Non-Financial Performance

     Individual Target Award amounts will be modified based on the achievement of financial and
non-financial objectives by the Company and relevant units and/or sub-units. Performance results
against objectives shall be reviewed and approved by the Committee in accordance with paragraph F.2
above, as applicable.

	 	3.	 	Individual Performance

     Any Individual Target Award, adjusted to reflect financial performance, may be further
adjusted with the review and approval of the Committee to give full weight to the Participant’s
individual performance during the Performance Period.

	 	4.	 	Overall Effect

     Subject to Article H, the combination of any financial performance adjustment and individual
performance adjustment may increase the amount paid under the Plan to a Participant for any
Performance Period to as much as three times the Individual Target Award, and may reduce any amount
payable to zero.

H. PROCEDURES APPLICABLE TO COVERED EMPLOYEES

     Awards under the Plan to Participants who are Covered Employees shall be subject to
pre-established Performance Goals as set forth in this Article H. Notwithstanding the provisions
of paragraph G.3 above, the Committee shall not have discretion to modify the terms of awards to
such Participants except as specifically set forth in this Article H.

     At the beginning of a Performance Period, the Committee shall establish Individual Target
Awards for such of the Participants who may be Covered Employees, payment of

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which shall be conditioned upon satisfaction of specific Performance Goals for the Performance
Period established by the Committee in writing in advance of the Performance Period, or within such
period as applicable regulations under Section 162(m) may permit to qualify payments to be
“performance-based”. The Performance Goals established by the Committee shall be based on one or
more of the criteria set forth in paragraph F.1 above. The extent, if any, to which an award will
be payable will be based upon the degree of achievement of the Performance Goals in accordance with
a pre-established objective formula or standard as determined by the Committee. The application of
the objective formula or standard to the Individual Target Award will determine whether the Covered
Employee’s award for the Performance Period is greater than, equal to or less than the
Participant’s Individual Target Award. To the extent that the minimum Performance Goals are
satisfied or surpassed, and upon written certification by the Committee that the Performance Goals
have been satisfied to a particular extent, payment of the award shall be made as soon as
reasonably practicable after the Payment Date in accordance with the objective formula or standard
applied to the Individual Target Award unless the Committee determines, in its sole discretion, to
reduce or eliminate the payment to be made.

     Notwithstanding any other provision of the Plan, the maximum award payable to any Participant
who is a Covered Employee for any fiscal year of the Company shall not exceed $6,000,000.

I. PAYMENT OF AWARDS

     An award under the Plan shall be paid in a single sum to the Participant as soon as reasonably
practicable after Payment Date, unless the Participant elects to defer his or her award pursuant to
the terms and conditions of the Company’s Deferred Compensation Administration Plan III
(“DCAP III”) and in compliance with Section 409A of the Code. To the extent that an award is not
deferred under DCAP III, such award shall be paid no later than the end of the period under which
payment would be deemed to be a “short-term deferral” as defined in the regulations under Section
409A of the Code.

J. EMPLOYMENT ON PAYMENT DATE

     No award shall be made to any Participant who is not an active employee of the Company on the
Payment Date; provided, however, that the Committee, in its sole and absolute discretion, may make
pro-rata awards to Participants in circumstances that the Committee deems appropriate in its
discretion, including, but not limited to, a Participant’s death, disability, retirement or other
termination of employment prior to the Payment Date. Any such pro-rated awards shall be determined
by the Committee in accordance with Article G above after taking into account the portion of the
Performance Period completed. Notwithstanding the foregoing, any pro-rata award that the Committee
in its sole and absolute discretion, may make to a Covered Employee upon a circumstance that is not
death, disability or a Change in Control, shall be based on the attainment of the pre-established
Performance Goals designated for the applicable performance period under Article H above.

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K. CHANGE IN CONTROL

     In the event of a Change in Control, the Company or any successor or surviving corporation
shall pay to each Participant an award for the Performance Period in which the Change in Control
occurs and for any previous Performance Period for which awards have been earned but not yet paid;
provided, however, any awards for any previous Performance Period paid to a Covered Employee shall
be based on the attainment of the pre-established Performance Goals designated for the applicable
performance period under Article H above. Subject to the employment requirements of Article J,
each such award shall be equal to the greatest of the following: (i) the Participant’s Individual
Target Award for the applicable Performance Period; (ii) the Participant’s Individual Target Award
for the applicable Performance Period adjusted based on the actual performance outcome for that
Performance Period, provided, that the Committee may not invoke its discretionary authority to
reduce the amount of such an award; or (iii) the average of awards earned and paid to (or deferred
by) the Participant in the three (or such fewer number of years that the Participant has been
eligible for such an award) completed Performance Periods immediately preceding the applicable
Performance Period. Such awards shall be paid by the Company or any successor or surviving
corporation at such time as the awards otherwise would be payable under the Plan; provided,
however, that if a Participant is terminated without Cause or terminates for Good Reason within
twelve months after a Change in Control, then such Participant shall be paid his or her awards
determined under this Article K, within thirty days of such termination. Notwithstanding the
foregoing, any award determined pursuant to this Article K shall be reduced by any corresponding
award payable under a Participant’s individual written employment agreement, if any.

L. FORFEITURE

     Any other provision of the Plan to the contrary notwithstanding, if the Committee determines
that a Participant has engaged in any of the actions described below, then upon written notice from
the Company to the Participant (i) the Participant shall not be eligible for any award for the year
in which such notice is given or for the preceding year, if such award has not been paid as of the
date of the notice, (ii) any payment of an award received by the Participant within twelve months
prior to the date that the Company discovered that the Participant engaged in any action described
below shall immediately be repaid to the Company by the Participant in cash (including amounts
withheld pursuant to Article M) and (iii) any award deferred pursuant to Article I within twelve
months prior to the date that the Company discovered that the Participant engaged in any action
described below shall be forfeited immediately and shall not be distributed to the Participant
under any circumstances.

     The consequences described above shall apply if the Participant, either before or after
termination of employment with the Company:

	 	1.	 	Discloses to others, or takes or uses for his or her own purpose or the purpose
of others, any trade secrets, confidential information, knowledge, data or know-how or
any other proprietary information or intellectual property belonging to the Company and
obtained by the Participant during the term of

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	 	 	 	his or her employment, whether or not they are the Participant’s work product.
Examples of such confidential information or trade secrets include, without
limitation, customer lists, supplier lists, pricing and cost data, computer
programs, delivery routes, advertising plans, wage and salary data, financial
information, research and development plans, processes, equipment, product
information and all other types and categories of information as to which the
Participant knows or has reason to know that the Company intends or expects secrecy
to be maintained; or
	 
	 	2.	 	Fails to promptly return all documents and other tangible items belonging to
the Company in the Participant’s possession or control, including all complete or
partial copies, recordings, abstracts, notes or reproductions of any kind made from or
about such documents or information contained therein, upon termination of employment,
whether pursuant to retirement or otherwise; or
	 
	 	3.	 	Fails to provide the Company with at least thirty (30) days’ written notice
prior to directly or indirectly engaging in, becoming employed by, or rendering
services, advice or assistance to any business in competition with the Company. As
used herein, “business in competition” means any person, organization or enterprise
which is engaged in or is about to become engaged in any line of business engaged in by
the Company at the time of the termination of the Participant’s employment with the
Company; or
	 
	 	4.	 	Fails to inform any new employer, before accepting employment, of the terms of
this Article L and of the Participant’s continuing obligation to maintain the
confidentiality of the trade secrets and other confidential information belonging to
the Company and obtained by the Participant during the term of his or her employment
with the Company; or
	 
	 	5.	 	Induces or attempts to induce, directly or indirectly, any of the Company’s
customers, employees, representatives or consultants to terminate, discontinue or cease
working with or for the Company, or to breach any contract with the Company, in order
to work with or for, or enter into a contract with, the Participant or any third party;
or
	 
	 	6.	 	Engages in conduct which is not in good faith and which disrupts, damages,
impairs or interferes with the business, reputation or employees of the Company; or
	 
	 	7.	 	Directly or indirectly engages in, becomes employed by, or renders services,
advice or assistance to any business in competition with the Company, at any time
during the twelve months following termination of employment with the Company.

     The Committee shall determine in its sole discretion whether the Participant has engaged in
any of the acts set forth in subsections 1 through 7 above, and its determination shall be
conclusive and binding on all interested persons.

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     Any provision of this Article L which is determined by a court of competent jurisdiction to be
invalid or unenforceable should be construed or limited in a manner that is valid and enforceable
and that comes closest to the business objectives intended by such invalid or unenforceable
provision, without invalidating or rendering unenforceable the remaining provisions of this
Article L.

M. RECOUPMENT 

     Individual Target Awards, and payments made under such awards, are subject to the
Corporation’s Compensation Recoupment Policy, which was first adopted by the Corporation on January
20, 2010, as amended from time to time, and which is hereby incorporated by reference into this
Plan.

N. WITHHOLDING TAXES

     Whenever the payment of an award is made, such payment shall be net of an amount sufficient to
satisfy federal, state and local income and employment tax withholding requirements and authorized
deductions.

O. EMPLOYMENT RIGHTS

     Neither the Plan nor designation as a Plan Participant shall be deemed to give any individual
a right to remain employed by the Company. The Company reserves the right to terminate the
employment of any employee at any time, with or without cause or for no cause, subject only to the
requirements of a written employment contract (if any).

P. NONASSIGNMENT; PARTICIPANTS ARE GENERAL CREDITORS

     The interest of any Participant under the Plan shall not be assignable either by voluntary or
involuntary assignment or by operation of law (except by designation of a beneficiary or
beneficiaries to the extent allowed under DCAP III or a successor plan with respect to amounts
deferred under Article I) and any attempted assignment shall be null, void and of no effect.

     Amounts paid under the Plan shall be paid from the general funds of the Company, and each
Participant shall be no more than an unsecured general creditor of the Company with no special or
prior right to any assets of the Company for payment of any obligations hereunder. Nothing
contained in the Plan shall be deemed to create a trust of any kind for the benefit of any
Participant, or create any fiduciary relationship between the Company and any Participant with
respect to any assets of the Company.

Q. AMENDMENT OR TERMINATION

     The Board of Directors may terminate or suspend the Plan at any time. The Committee may amend
the Plan at any time; provided that (i) to extent required under Section 162(m), the Plan will not
be amended without prior approval of the Company’s stockholders, and (ii) no amendment shall
retroactively and adversely affect the payment of any award previously made. Notwithstanding the
foregoing, no amendment adopted

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following the occurrence of a Change in Control shall be effective if it (a) would reduce a
Participant’s Individual Target Award for the Performance Period in which the Change in Control
occurs, (b) would reduce an award payable to a Participant based on the achievement of Performance
Goals in the Performance Period before the Performance Period in which the Change in Control
occurs, or (c) modify the provisions of this Article P.

R. SUCCESSORS AND ASSIGNS

     This Plan shall be binding on the Company and its successors or assigns.

S. GOVERNING LAW

     The law of the State of Delaware shall govern all question concerning the construction,
validity and interpretation of the Plan, without regard to the state’s conflict of laws rules.

T. INTERPRETATION AND SEVERABILITY

     The Plan is intended to comply with Section 162(m), and all provisions contained herein shall
be construed and interpreted in a manner to so comply. In case any one or more of the provisions
contained in the Plan shall for any reason be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any other provision of
the Plan, but the Plan shall be construed as if such invalid, illegal or unenforceable provisions
had never been contained herein.

U. DEFINITIONS

	 	1.	 	“Cause”

     “Cause” shall mean termination of the Participant’s employment upon the Participant’s willful
engagement in misconduct which is demonstrably and materially injurious to the Company. No act, or
failure to act, on the part of the Participant shall be considered “willful” unless done, or
omitted to be done, by the Participant not in good faith and without reasonable belief that the
Participant’s action or omission was in the best interest of the Company.

	 	2.	 	“Change in Control”

     A “Change in Control” shall mean the occurrence of any change in ownership of the Company,
change in effective control of the Company, or change in the ownership of a substantial portion of
the assets of the Company, as defined in Section 409A(a)(2)(A)(v) of the Internal Revenue Code of
1986, as amended, the regulations thereunder, and any other published interpretive authority, as
issued or amended from time to time.

	 	3.	 	“Code”

     “Code” shall mean the Internal Revenue Code of 1986, as amended.

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	 	4.	 	“Committee”

     “Committee” shall mean the Compensation Committee of the Board of Directors of McKesson
Corporation; provided, however, that the Committee shall consist solely of two or more “outside
directors”, in conformance with Section 162(m) of the Code.

	 	5.	 	“Company”

     “Company” shall mean McKesson Corporation, a Delaware corporation, including its subsidiaries
and affiliates.

	 	6.	 	“Covered Employee”

     “Covered Employee” shall mean an eligible Participant designated by the Committee who is, or
is expected to be, a “covered employee” within the meaning of Section 162(m) for the Performance
Period in which an award is payable hereunder.

	 	7.	 	“Good Reason”

     “Good Reason” shall mean any of the following actions, if taken without the express written
consent of the Participant:

	 	a.	 	any material change by the Company in the functions, duties, or
responsibilities of the Participant, which change would cause such
Participant’s position with the Company to become of less dignity,
responsibility, importance, or scope from the position and attributes that
applied to the Participant immediately prior to the Change in Control;
	 
	 	b.	 	any reduction in the Participant’s base salary;
	 
	 	c.	 	any material failure by the Company to comply with any of the
provisions of any employment agreement between the Company and the Participant;
	 
	 	d.	 	the requirement by the Company that the Participant be based at
any office or location more than 25 miles from the office at which the
Participant is based on the date immediately preceding the Change in Control,
except for travel reasonably required in the performance of the Participant’s
responsibilities and commensurate with the amount of travel required of the
Participant prior to the Change in Control; or
	 
	 	e.	 	any failure by the Company to obtain the express assumption of
this Plan by any successor or assign of the Company.

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	 	8.	 	“Individual Target Award”

     “Individual Target Award” shall mean the target award established for each Participant under
Article E, which shall be a percentage of the Participant’s base salary or a fixed dollar amount,
as determined by the Committee.

	 	9.	 	“Officer Group”

     “Officer Group” shall mean the Covered Employees and any other officer of the Company
designated as part of the Officer Group by the Committee.

	 	10.	 	“Participants”

     “Participants” shall mean those employees specifically designated as Participants for a
Performance Period under Article D.

	 	11.	 	“Payment Date”

     “Payment Date” shall mean the date following the conclusion of a Performance Period on which
the Committee certifies that applicable Performance Goals have been satisfied and authorizes
payment of corresponding awards.

	 	12.	 	“Performance Goals”

     “Performance Goals” shall have the meaning set forth in Article F hereof.

	 	13.	 	“Performance Period”

     “Performance Period” shall mean the time period over which Performance Goals of the Company
are measured, as the Committee determines in its discretion; provided that if the Committee does
not designate a time period, then the Performance Period shall mean the fiscal year of the Company.

	 	14.	 	“Plan”

     “Plan” shall mean the McKesson Corporation 2005 Management Incentive Plan, as amended from
time to time.

	 	15.	 	“Section 162(m)”

     “Section 162(m)” shall mean Section 162(m) of the Code and regulations promulgated thereunder,
as may be amended from time to time.

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V. EXECUTION

     This amended and restated 2005 Management Incentive Plan was adopted by the Committee April
20, 2010.

	 	 	 	 	 
	McKESSON CORPORATION

 	 
	By:  	/s/ Jorge L. Figueredo
 	 
	 	Jorge L. Figueredo 	 
	 	Executive Vice President, Human Resources 	 
	 

12exv10w15

EXHIBIT 10.15

FORM OF

McKESSON CORPORATION

STATEMENT OF TERMS AND CONDITIONS

APPLICABLE TO AWARDS

PURSUANT TO THE MANAGEMENT INCENTIVE PLAN

Effective April 20, 2010

     The McKesson Management Incentive Plan (“MIP” or “Plan”) provides the short-term cash
incentive compensation component of McKesson total compensation program.

     The following terms and conditions shall apply to awards made under the Plan to an executive,
managerial or professional employee of the Company who is specifically designated as a participant
in the Plan. Capitalized terms used herein are defined in the MIP or in Section 8. In the event
these terms and conditions conflict with the terms of the MIP, the MIP document shall control.

1. Participant.

     Only active employees of the Company, its subsidiaries or affiliates who are employed in an
executive, managerial or professional capacity may be designated as Participants under the Plan.
The Compensation Committee of the Board (“the Committee”) shall review those employees who are
eligible to participate in the Plan and recommended by management and determine which of those
employees will become Plan Participants. The Committee may add to or delete individuals from the
list of designated Participants at any time and from time to time, at its sole discretion. The
Committee has delegated the authority to approve Plan Participants to the CEO.

     Participation in a Performance Period does not guarantee payment of an award under the Plan
for that Performance Period. Participation in one Performance Period does not guarantee
participation in a subsequent Performance Period.

     A. New Hires.

     An employee hired after the beginning of a Performance Period must be in an eligible
position and actively at work prior to the January 1 that falls within that Performance
Period in order to be a Participant in that Performance Period.

     B. Transfers and Promotions.

     An employee promoted into or transferred from an ineligible position to an eligible
position during a Performance Period must be actively at work for a minimum of three months
in the new eligible position to be a Participant.

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     An employee demoted from or transferred from an eligible position to an ineligible
position during the Performance Period must be actively at work for a minimum of three
months in the eligible position to be a Participant.

2. Individual Target Award.

     The Individual Target Award is the percentage of base annual salary specified at the beginning
of the Performance Period (or beginning of participation, if later) for a Participant.

     A. Transfers, Promotions and Demotions.

     A Participant who moves from one job to a new job with a higher Individual Target Award
during the Performance Period will, in general, have his final Award Determination prorated
between the two Individual Target Awards. The participant should be actively at work for a
minimum of three months in the new position for the new, higher, Individual Target Award to
be recognized in the final Award Determination.

     A Participant demoted to or transferred to a new job with a lower Individual Target
Award, during the Performance Period, will have his final Award Determination based on
management discretion.

     Notwithstanding the foregoing, any proration must be based on the achievement of
Performance Goals for the Performance Period.

3. Performance Measures and Goals.

     Each Participant shall have one or more Individual Performance Measures. Individual
Performance Measures may be quantitative, qualitative or both. The Performance Goals (defined in
Article F of the Plan) established for each segment of the Company are referred to as the Business
Scorecard. A Participant’s Individual Performance Measures and the Performance Goals, taken as a
whole, will determine the amount of the Participant’s Award.

     A Participant who changes jobs and / or organization during the Performance Period may have
different Business Scorecards applicable to each job / organization. The Participant may have his
final Award Determination prorated between the two Business Scorecards.

4. Individual Performance Modifier.

     Final awards will be adjusted, at management discretion, to reflect the Participant’s
individual contribution to Business Scorecard results and the Participant’s Individual Performance
Measures.

5. Other Individual Requirements.

     Notwithstanding any provision of the Plan to the contrary, no amount shall be payable with
respect to the Performance Period unless the Committee certifies that it is satisfied that the
requirements (performance or otherwise) associated with such payment have been fully met. Such
requirements may include, but are not limited to:

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	 	•	 	Completion of the Company’s Legal and Regulatory Compliance and Ethics Training
Program.

6. Award Determination.

     Any payment to a Participant shall be based on Business Scorecard results during the
Performance Period as modified by the Participant’s Individual Performance Modifier. The actual
award is determined by:

	 	•	 	Taking the Covered Compensation received during the Performance Period;
	 
	 	•	 	Multiplying by the Individual Target Award;
	 
	 	•	 	Multiplying by the Business Scorecard results (actual vs. target);
	 
	 	•	 	Adjusting the result determined above, up or down, by the Individual Performance
Modifier.

     Management and the Committee shall review and approve, modify or disapprove the amount, if any
to be paid to a Participant for the Performance Period. Management and the Committee reserve the
right to reduce or increase or eliminate the individual payments determined according to the above
method. No Personal Modifier shall exceed 150%.

     Notwithstanding the foregoing, any awards to Covered Employees shall be made and determined in
a manner consistent with the Plan and Section 162(m) of the Code.

7. Effect of a Termination of Employment, Prior to the End of the Performance Period, on the
Award.

     A. Termination of Employment for Other Than Death, Retirement, Severance, and
Long-Term Disability.

     If the Participant ceases to be a bona fide employee of the Company or of its
subsidiaries and affiliates prior to the payment of the final award, for any reason other
than death, Retirement, Severance or Long-Term Disability, the Participant’s interest in the
Award shall be forfeited and no amount shall be payable to the Participant with respect to
service during the Performance Period.

     B. Termination of Employment by Reason of Death or Long-Term Disability.

     If the Participant ceases to be a bona fide employee of the Company or of its
subsidiaries and affiliates due to death or Long-Term Disability during the Performance
Period, the Participant (or the Participant’s Beneficiary, if payment is made on account of
the death of the Participant) shall be entitled to receive an Award as calculated under
Paragraph 6 above.

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     C. Termination of Employment by Reason of Retirement.

     If the Participant ceases to be a bona fide employee of the Company or of its
subsidiaries and affiliates due to Retirement prior to January 1 of the Performance Period,
the Participant’s interest in the Award shall be forfeited and no amount shall be payable to
the Participant with respect to service during the Performance Period.

     If the Participant ceases to be a bona fide employee of the Company or of its
subsidiaries and affiliates due to Retirement on or after January 1 of the Performance
Period, the Participant shall be entitled to receive an Award as calculated under Paragraph
6 above.

     D. Termination of Employment by Reason of Severance.

     If the Participant ceases to be a bona fide employee of the Company or of its
subsidiaries and affiliates due to Severance prior to January 1 of the Performance Period,
the Participant’s interest in the Award shall be forfeited and no amount shall be payable to
the Participant with respect to service during the Performance Period.

     If the Participant ceases to be a bona fide employee of the Company or of its
subsidiaries and affiliates due to Severance on or after January 1 of the Performance
Period, the Participant shall be entitled to receive an Award as calculated under Paragraph
6 above.

8. Data Privacy.

     By accepting the Award, the Participant hereby explicitly and unambiguously consents to the
collection, use and transfer, in electronic or other form, of his or her personal data as described
in this document by and among, as applicable, the Participant’s employer (the “Employer”) and the
Corporation and its Affiliates for the exclusive purpose of implementing, administering and
managing participation in the Plan.

     The Participant understands that the Corporation and the Employer hold certain personal
information about the Participant, including, but not limited, his or her name, home address and
telephone number, date of birth, social insurance or other identification number, salary,
nationality, job title, any shares of Company stock or directorships held in the Corporation,
details of all compensation or any other entitlement to Company-sponsored benefits for the purpose
of implementing, administering and managing the Plan (“Data”). The Participant understands that
Data may be transferred to any third parties assisting in the implementation, administration and
management of the Plan, that these recipients may be located in the Participant’s country or
elsewhere, such as in the United States of America, and that the recipient’s country may have
different data privacy laws and protections than the Participant’s country. The Participant
understands that he or she may request a list with the names and addresses of any potential
recipients of the Data by contacting the local human resources representative. The Participant
authorizes the recipients to receive, possess, use, retain and transfer the Data, in electronic or
other form, for the purposes of implementing, administering and managing participation in the Plan.
The Participant understands that Data will be held only as long as is necessary to implement,
administer and manage his or her participation in the Plan.

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The Participant understands that he or she may, at any time, view Data, request additional
information about the storage and processing of Data, require any necessary amendments to Data or
refuse or withdraw the consents herein, without cost, by contacting in writing the local human
resources representative. The Participant understands, however, that refusing or withdrawing
consent may affect his or her ability to participate in the Plan. For more information on the
consequences of refusal to consent or withdrawal of consent, the Participant understands that he or
she may contact the local human resources representative.

9. Governing Law.

     The law of the State of Delaware shall govern all question concerning the construction,
validity and interpretation of the Awards, without regard to the state’s conflict of laws rules.

10. Definitions.

     Capitalized terms shall have the same meaning as provided in the Plan. Additional capitalized
text that is not included in the Plan, but is used in this Statement of Terms and Conditions, shall
have the meaning set forth below:

	 	(a)	 	“Award” means an Individual Target Award.
	 
	 	(b)	 	“Covered Compensation” means regular wages earned by and paid to the
Participant during the Performance Period, including any Paid Time Off (PTO) pay.
Covered compensation does not include any other compensation received during the
Performance Period, including, but not limited to, earnings received during a paid
leave, overtime or commission pay.
	 
	 	(c)	 	“Long-Term Disability” means (i) a physical or mental condition which, in the
judgment of the Committee based on competent medical evidence satisfactory to the
Committee, including, if required by the Committee, medical evidence obtained by an
examination conducted by a physician selected by the Committee, renders an individual
unable to engage in any substantial gainful activity for the Company or its
subsidiaries or affiliates and which impairment is likely to result in death or to be
of long, continued and indefinite duration, or (ii) a judicial declaration of
incompetence.
	 
	 	(d)	 	“Retirement” means termination from the Company and all of its subsidiaries
with age plus years of service at least equal to 65.
	 
	 	(e)	 	“Severance” means Eligibility for participation in and entitlement to benefits
under the Company’s Severance Pay Plan, as defined in Section 3 of the Plan.

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