Document:

Form of Statement of Terms and Conditions applicable to Awards

 Exhibit 10.3 
 FORM OF 
 McKESSON CORPORATION 

STATEMENT OF TERMS AND CONDITIONS 
 APPLICABLE TO AWARDS 
 PURSUANT TO THE 2005 MANAGEMENT INCENTIVE PLAN

 Effective April 20, 2010 
 The following terms and conditions shall apply to awards made under the McKesson Corporation 2005 Management Incentive Plan (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 Plan or in Section 10. In the event these terms and conditions conflict with the terms of the Plan document, the Plan
document shall control. 
  

	1.	Participant. 

Only active employees of the Company who are employed in an executive, managerial or professional capacity may be designated as
Participants under the Plan. The Compensation Committee (“the Committee”) of the Company’s Board of Directors 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 Chief Executive Officer of the Company. 
 Participation in the Plan during the Performance Period does
not guarantee payment of an Actual Award under the Plan for the Performance Period. Participation in the Plan during one Performance Period does not guarantee participation during a subsequent Performance Period. 

 

	 	A.	New Hires. 

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

	 	B.	Transfers and Promotions. 

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

  
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during the Performance Period must be actively at work in the eligible position for a minimum of three months during the Performance Period 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 during the Performance Period from one eligible position to a new eligible position with a higher Individual Target Award will, in general, have the determination of his or her
Actual Award prorated between the two Individual Target Awards, provided that the Participant is actively at work for a minimum of three months of the Performance Period in the new eligible position having the higher Individual Target Award.

 A Participant who during the Performance Period is demoted to or transferred to a new eligible position with
a lower Individual Target Award will have the determination of his or her Actual Award prorated in management’s 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
Actual Award. 
 A Participant who changes jobs and / or organizations during the Performance Period may have different Business
Scorecards applicable to each job / organization. The Participant may, in management’s discretion, have the determination of his or her Actual Award prorated between the two Business Scorecards. 

 

	4.	Individual Performance Modifier. 

 Actual Awards will be adjusted, in management’s 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

  
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requirements (performance or otherwise) associated with such payment have been fully met. Such requirements may include, but are not limited to: 

 

	 	•	 	 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 Actual Award, 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 Awards. 

 

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

If the Participant ceases to be a bona fide employee of the Company prior to the payment of the Actual Award, for any
reason other than death, Retirement, Severance or Long-Term Disability, the Participant’s interest in the Awards 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 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 Actual 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 due to Retirement prior to January 1 of the Performance Period, the Participant’s interest in the Awards 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 due to Retirement on or after January 1 of the Performance Period, the Participant shall be entitled to receive an Actual 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 due to Severance prior to January 1 of the Performance Period, the Participant’s interest in the Awards 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 due to Severance on or after January 1 of the Performance Period, the Participant shall be entitled to receive an Actual 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 Company for the exclusive purpose of implementing, administering and managing participation in the Plan. 
 The Participant understands that the Company and the Employer hold certain personal information about the Participant, including but not limited to 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 Company, 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. 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

  
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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 Plan and any
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)	“Actual Award” means the finally determined amount payable under the Plan for a Performance Period. 

 

	 	(b)	“Awards” means, collectively, Individual Target Awards and Actual Awards. 

 

	 	(c)	“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. 

 

	 	(d)	“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 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. 

  

	 	(e)	“Retirement” means termination from the Company with age plus years of service equal to at least 65. 

 

	 	(f)	“Severance” means participation in and entitlement to benefits under the Company’s Severance Pay Plan in accordance with the terms and conditions of such
plan. 

  
 5Form of Statement of Terms and Conditions applicable to Awards

 Exhibit 10.4 
 CEO 
 FORM OF 

McKESSON CORPORATION 
 STATEMENT OF TERMS AND CONDITIONS 
 APPLICABLE TO AWARDS MADE TO

 THE CHIEF EXECUTIVE OFFICER 
 PURSUANT TO THE LONG-TERM INCENTIVE PLAN 
 The following terms and
conditions shall apply to awards made under the McKesson Corporation Long-Term Incentive Plan on or after May 26, 2009 to a key executive of the Company (the “Participant”). Capitalized terms used herein are defined in Section 7.

 1. Committee Action. 
 The Target Award is the amount specified by the Committee at the time of making the award. Notwithstanding any provision of the Plan to the contrary, no amount shall be payable with respect to a
Performance Period unless the Committee certifies that it is satisfied that the requirements (performance or otherwise) associated with such payment have been fully met. 
 2. Performance Measures. 
 Any payment pursuant to the Target Award shall
be contingent upon the Company’s performance during the Performance Period. The final amount to be paid pursuant to the Target Award shall be calculated by determining the percentage, determined with reference to the Performance Chart (with
interpolation), and then applying the result to the Target Award (such finally determined amount, the “Actual Award”). The Target Award and the Actual Award may be referred to herein cumulatively as the “Awards.” 

The Committee reserves the right to reduce the individual payments determined according to the above formula. 

Payment of the Actual Award, if any, shall be made in a lump sum as soon as reasonably practicable following the end of the Performance
Period and the Committee’s certification as set forth in Section 1, subject to forfeiture as provided in Section 3 below or acceleration as provided in Section 4 below; provided, however, that the Actual Award shall not be paid
later than following the end of the calendar year in which the Performance Period ends, unless as otherwise provided below. 

 CEO 

 
 3. Effect of a Termination of Employment. 

 

	 	(a)	Termination of Employment Due to Retirement, Death or Long-Term Disability Prior to Completion of One Half of the Performance Period; Termination for Any Reason
Other Than Retirement, Death or Long-Term Disability Prior to Payment of the Actual Award 

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

 

	 	(b)	Termination of Employment by Reason of Retirement, Death or Long-Term Disability On or After Completion of One Half of the Performance Period

 If the Participant ceases to be a bona fide employee of the Company on or after completion of one half of the
Performance Period, due to Retirement, death or Long-Term Disability, the Participant (or the Participant’s Beneficiary, if payment is made on account of the death of the Participant) shall be entitled to receive the following as soon as
reasonably practicable after the end of the Performance Period, but prior to the end of the calendar year in which the Performance Period ends: 
 The pro-rata portion of the Actual Award adjusted by the actual service during the Performance Period; provided, the fraction representing the pro-rata amount shall be applied to the Actual Award, which
is based on the actual performance during the Performance Period, and not the Target Award. 
 4. Effect of Change in
Control. 
 In the event of the occurrence of a Change in Control prior to the termination of the Participant’s
employment with the Company, the Actual Award will be calculated and replaced with an award of restricted cash with a dollar amount equal to the dollar amount of the Actual Award assuming attainment of target performance or actual performance
achieved, if greater, as of the Change in Control and with the restrictions on such restricted cash award lapsing at the end of the Performance Period applicable to the Target Award without regard to the Change in Control. In the event that the
Participant’s employment is terminated by the Company without Cause or for Retirement, death or Long Term Disability or by the Participant for Good Reason during the vesting period of the restricted cash award, such restricted cash award shall
immediately vest and be paid out as follows: 
 The Participant shall receive a cash payment determined based on the Performance
Chart measured through the last full fiscal year completed prior to the employment termination date, and paid as soon as practicable following the employment termination 

  
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 CEO 

 
 
date, but in no event later than the date that is the later of (i) the end of the calendar year or (ii) two and one-half months after, such Participant terminates employment.

 5. Section 409A. 
 It is the Company’s intent that the Awards under the Plan do not constitute deferred compensation subject to section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”);
however, to the extent any amount payable under the Plan, when considered together with any other payments or benefits which may be considered deferred compensation subject to Section 409A (as determined by the Company in its reasonable
judgment), would result in the imposition of additional tax under Section 409A if paid on or within six months following such termination of employment, such amount shall instead be paid on the date that follows the date of such termination of
employment by six months or such longer time as required to avoid tax liabilities under Section 409A. For purposes of this Statement of Terms and Conditions, “termination of employment” and similar iterations, shall have the same
meaning as “Separation from Service” as defined in DCAP III. 
 6. Employment Agreement. 

Notwithstanding the foregoing, no provision in this document herein shall adversely affect any provision in the employment agreement by
and between the Participant and the Company, if any, in effect at the time when payments are made under the Plan. 
 7.
Definitions. 
 When capitalized in the text of this Statement of Terms and Conditions the following terms shall have the
meaning set forth below: 
  

	 	(a)	“Beneficiary” means the person, persons or entity designated by a Participant in accordance with any procedures established by the Committee to receive any
amounts distributable under the Plan in the event of the death of the Participant. If no Beneficiary is designated or if no designated Beneficiary is living when a distribution is to be made, then the Beneficiary shall be the Participant’s
current lawful spouse if then living or, if not, the Participant’s estate. A Participant may change or revoke a previous designation of a Beneficiary at any time. 

 

	 	(b)	“Cause” means termination of the Participant’s employment with the Company upon the Participant’s negligent or willful engagement in misconduct
which, in the sole determination of the Chief Executive Officer (“CEO”) (or his designee), is injurious to the Company, its employees, or its customers. 

 

	 	(c)	“Change in Control” shall have the meaning set forth in Section 6 of the Plan. 

  
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 CEO 

 
  

	 	(d)	“Committee” means the Compensation Committee of the Board of Directors of the Company. 

 

	 	(e)	“Company” means McKesson Corporation, a Delaware corporation, including its subsidiaries and affiliates. 

 

	 	(f)	“DCAP III” means the McKesson Corporation Deferred Compensation Administration Plan III, as amended from time to time. 

 

	 	(g)	“Good Reason” means any of the following actions, if taken without the express written consent of the Participant: 

 

	 	(i)	Any material change by the Company in the CEO’s functions, duties or responsibilities as President and Chief Executive Officer, which change would cause the
CEO’s position with the Company to become of less dignity, responsibility, importance, or scope as compared to the position and attributes that applied to the CEO immediately prior to the Change in Control, or an adverse change in the
CEO’s title, position or his obligation and right to report directly to the Board; 

  

	 	(ii)	Any reduction in the CEO’s base annual salary, MIP target or Long Term Incentive compensation (LTI) targets, which LTI targets include cash awards with
performance periods greater than one year and equity based grants, except for reductions that are equivalent to reductions applicable to executive officers of the Company; 

 

	 	(iii)	Any material failure by the Company to comply with any of the provisions of an award (or of any employment agreement between the parties) subsequent to a Change in
Control; 

  

	 	(iv)	The Company’s requiring the CEO to be based at any office or location more than 25 miles from the office at which the CEO is based on the date immediately
preceding the Change in Control, except for travel reasonably required in the performance of the CEO’s responsibilities; 

  

	 	(v)	Cancellation of the automatic renewal mechanism set forth in the CEO’s Employment Agreement; 

 

	 	(vi)	If the Board removes the CEO as Chairman at or after a Change in Control (or prior to a Change in Control if at the request of any third party participating in or
causing the Change in Control), unless such removal is required by then-applicable law; or 

  

	 	(vii)	A change in the majority of the members of the Board as it was construed immediately prior to the Change in Control; 

  
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 CEO 

 
 provided that the Participant (A) has given written
notice to the Board as to the details of the basis for such Good Reason within thirty (30) days following the date on which the Participant alleges the condition giving rise to such Good Reason initially occurs and the Company has failed to
provide a reasonable cure within thirty (30) business days after its receipt of such notice and (B) Participant’s Separation from Service occurs within ninety (90) days of the time in which the condition giving rise to such Good
Reason initially occurs. 
  

	 	(h)	“Long-Term Disability” shall mean that an individual is determined by the Social Security Administration to be totally disabled. 

 

	 	(i)	The “Performance Chart” shall be the performance measure(s) and award scale(s), specified by the Committee at the time of making the award.

  

	 	(j)	“Performance Period” is the period of time, identified by a beginning and end date, specified by the Committee at the time of making the award over which
performance is measured. 

  

	 	(k)	“Plan” means the McKesson Corporation Long-Term Incentive Plan, as amended from time to time. 

 

	 	(l)	“Retirement” means Approved Retirement in accordance with the McKesson Executive Benefit Retirement Plan or having age plus service equal to or greater than
65 and designation as a retiree by the Compensation Committee of the Board. 

  

	 	(m)	“Target Award” means the amount specified by the Committee payable to a participant for the Performance Period and payable for achievement at 100%.

  
 5 

 OFFICERS 

 
 FORM OF 

McKESSON CORPORATION 
 STATEMENT OF TERMS AND CONDITIONS 
 APPLICABLE TO AWARDS MADE TO

 CERTAIN OFFICERS 
 PURSUANT TO THE LONG-TERM INCENTIVE PLAN 
 The following terms and
conditions shall apply to awards made under the McKesson Corporation Long-Term Incentive Plan on or after May 26, 2009 to a key executive of the Company (the “Participant”). Capitalized terms used herein are defined in Section 7.

 1. Committee Action. 
 The Target Award is the amount specified by the Committee at the time of making the award. The Committee reserves the right to adjust an individual’s Target Award prior to the date of payment of such
award if there is a change in an individual’s duties and/or responsibilities. Notwithstanding any provision of the Plan to the contrary, no amount shall be payable with respect to a Performance Period unless the Committee certifies that it is
satisfied that the requirements (performance or otherwise) associated with such payment have been fully met. 
 2.
Performance Measures. 
 Any payment pursuant to the Target Award shall be contingent upon the Company’s performance
during the Performance Period. The final amount to be paid pursuant to the Target Award shall be calculated by determining the percentage, determined with reference to the Performance Chart (with interpolation), and then applying the result to the
Target Award (such finally determined amount, the “Actual Award”). The Target Award and the Actual Award may be referred to herein cumulatively as the “Awards.” 

The Committee reserves the right to reduce the individual payments determined according to the above formula. 

Payment of the Actual Award, if any, shall be made in a lump sum as soon as reasonably practicable following the end of the Performance
Period and the Committee’s certification as set forth in Section 1, subject to forfeiture as provided in Section 3 below or acceleration as provided in Section 4 below; provided, however, that the Actual Award shall not be paid
later than following the end of the calendar year in which the Performance Period ends, unless as otherwise provided below. 

  
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 OFFICERS 

 
 3. Effect of a Termination of Employment. 

 

	 	(a)	Termination of Employment Due to Retirement, Death or Long-Term Disability Prior to Completion of One Half of the Performance Period; Termination for Any Reason
Other Than Retirement, Death or Long-Term Disability Prior to Payment of the Actual Award 

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

 

	 	(b)	Termination of Employment by Reason of Retirement, Death or Long-Term Disability On or After Completion of One Half of the Performance Period

 If the Participant ceases to be a bona fide employee of the Company on or after completion of one half of the
Performance Period, due to Retirement, death or Long-Term Disability, the Participant (or the Participant’s Beneficiary, if payment is made on account of the death of the Participant) shall be entitled to receive the following as soon as
reasonably practicable after the end of the Performance Period, but prior to the end of the calendar year in which the Performance Period ends: 
 The pro-rata portion of the Actual Award adjusted by the actual service during the Performance Period; provided, the fraction representing the pro-rata amount shall be applied to the Actual Award, which
is based on the actual performance during the Performance Period, and not the Target Award. 
 4. Effect of Change in
Control. 
 In the event of the occurrence of a Change in Control prior to the termination of the Participant’s
employment with the Company, the Actual Award will be calculated and replaced with an award of restricted cash with a dollar amount equal to the dollar amount of the Actual Award assuming attainment of target performance or actual performance
achieved, if greater, as of the Change in Control and with the restrictions on such restricted cash award lapsing at the end of the Performance Period applicable to the Target Award without regard to the Change in Control. In the event that the
Participant’s employment is terminated by the Company without Cause or for Retirement, death or Long Term Disability or by the Participant for Good Reason during the vesting period of the restricted cash award, such restricted cash award shall
immediately vest and be paid out as follows: 
 The Participant shall receive a cash payment determined based on the Performance
Chart measured through the last full fiscal year completed prior to the employment 

  
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 OFFICERS 
 termination date, and paid as soon as practicable following the employment termination date, but in no event later than the date that is the later of (i) the end of the calendar year or (ii) two
and one-half months after, such Participant terminates employment. 
 5. Section 409A. 

It is the Company’s intent that the Awards under the Plan do not constitute deferred compensation subject to section 409A of the
Internal Revenue Code of 1986, as amended (“Section 409A”); however, to the extent any amount payable under the Plan, when considered together with any other payments or benefits which may be considered deferred compensation subject to
Section 409A (as determined by the Company in its reasonable judgment), would result in the imposition of additional tax under Section 409A if paid on or within six months following such termination of employment, such amount shall instead
be paid on the date that follows the date of such termination of employment by six months or such longer time as required to avoid tax liabilities under Section 409A. For purposes of this Statement of Terms and Conditions, “termination of
employment” and similar iterations, shall have the same meaning as “Separation from Service” as defined in DCAP III. 
 6. Employment Agreement. 
 Notwithstanding the foregoing, no provision in
this document herein shall adversely affect any provision in the employment agreement by and between the Participant and the Company, if any, in effect at the time when payments are made under the Plan. 

7. Definitions. 
 When capitalized in the text of this Statement of Terms and Conditions the following terms shall have the meaning set forth below: 

 

	 	(a)	“Beneficiary” means the person, persons or entity designated by a Participant in accordance with any procedures established by the Committee to receive any
amounts distributable under the Plan in the event of the death of the Participant. If no Beneficiary is designated or if no designated Beneficiary is living when a distribution is to be made, then the Beneficiary shall be the Participant’s
current lawful spouse if then living or, if not, the Participant’s estate. A Participant may change or revoke a previous designation of a Beneficiary at any time. 

 

	 	(b)	“Cause” means termination of the Participant’s employment with the Company upon the Participant’s negligent or willful engagement in misconduct
which, in the sole determination of the Chief Executive Officer (or his designee), is injurious to the Company, its employees, or its customers. 

  

	 	(c)	“Change in Control” shall have the meaning set forth in Section 6 of the Plan. 

  
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 OFFICERS 

	 	(d)	“Committee” means the Compensation Committee of the Board of Directors of the Company. 

 

	 	(e)	“Company” means McKesson Corporation, a Delaware corporation, including its subsidiaries and affiliates. 

 

	 	(f)	“DCAP III” means the McKesson Corporation Deferred Compensation Administration Plan III, as amended from time to time. 

 

	 	(g)	“Good Reason” means any of the following actions, if taken without the express written consent of the Participant: 

 

	 	(i)	Any material adverse change by the Company in the Participant’s authorities, duties, or responsibilities, which change would cause the 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; 

 

	 	(ii)	Any significant reduction in the Participant’s base salary immediately prior to the Change in Control, other than a reduction effected as part of an
across-the-board reduction affecting all Plan participants; 

  

	 	(iii)	Any material failure by the Company to comply with any of the provisions of an award (or of any employment agreement between the parties) subsequent to a Change in
Control; 

  

	 	(iv)	The Company’s requiring the Participant to 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; or 

  

	 	(v)	Any change in the person to whom the Participant reports, as this relationship existed immediately prior to a Change in Control; 

provided that the Participant (A) has given written notice to the Board as to the details of the basis for such Good Reason within
thirty (30) days following the date on which the Participant alleges the condition giving rise to such Good Reason initially occurs and the Company has failed to provide a reasonable cure within thirty (30) business days after its receipt
of such notice and (B) Participant’s Separation from Service occurs within ninety (90) days of the time in which the condition giving rise to such Good Reason initially occurs. 

 

	 	(h)	“Long-Term Disability” shall mean that an individual is determined by the Social Security Administration to be totally disabled. 

  
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 OFFICERS 

	 	(i)	The “Performance Chart” shall be the performance measure(s) and award scale(s), specified by the Committee at the time of making the award.

  

	 	(j)	“Performance Period” is the period of time, identified by a beginning and end date, specified by the Committee at the time of making the award over which
performance is measured. 

  

	 	(k)	“Plan” means the McKesson Corporation Long-Term Incentive Plan, as amended from time to time. 

 

	 	(l)	“Retirement” means Approved Retirement in accordance with the McKesson Executive Benefit Retirement Plan or having age plus service equal to or greater than
65 and designation as a retiree by the Compensation Committee of the Board. 

  

	 	(m)	“Target Award” means the amount specified by the Committee payable to a participant for the Performance Period and payable for achievement at 100%.

  
 5 

 EMPLOYEES 

 
 FORM OF 

McKESSON CORPORATION 
 STATEMENT OF TERMS AND CONDITIONS 
 APPLICABLE TO AWARDS MADE TO

 CERTAIN EMPLOYEES 
 PURSUANT TO THE LONG-TERM INCENTIVE PLAN 
 The following terms and
conditions shall apply to awards made under the McKesson Corporation Long-Term Incentive Plan on or after May 26, 2009 to a key executive of the Company (the “Participant”). Capitalized terms used herein are defined in Section 6.

 1. Committee Action. 
 The Target Award is the amount specified by the Committee at the time of making the award. The Committee reserves the right to adjust an individual’s Target Award prior to the date of payment of such
award if there is a change in an individual’s duties and/or responsibilities. Notwithstanding any provision of the Plan to the contrary, no amount shall be payable with respect to a Performance Period unless the Committee certifies that it is
satisfied that the requirements (performance or otherwise) associated with such payment have been fully met. 
 2.
Performance Measures. 
 Any payment pursuant to the Target Award shall be contingent upon the Company’s performance
during the Performance Period. The final amount to be paid pursuant to the Target Award shall be calculated by determining the percentage, determined with reference to the Performance Chart (with interpolation), and then applying the result to the
Target Award (such finally determined amount, the “Actual Award”). The Target Award and the Actual Award may be referred to herein cumulatively as the “Awards.” 

The Committee reserves the right to reduce the individual payments determined according to the above formula. 

Payment of the Actual Award, if any, shall be made in a lump sum as soon as reasonably practicable following the end of the Performance
Period and the Committee’s certification as set forth in Section 1, subject to forfeiture as provided in Section 3 below or acceleration as provided in Section 4 below; provided, however, that the Actual Award shall not be paid
later than following the end of the calendar year in which the Performance Period ends, unless as otherwise provided below. 

  
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 EMPLOYEES 

 
 3. Effect of a Termination of Employment. 

 

	 	(a)	Termination of Employment Due to Retirement, Death or Long-Term Disability Prior to Completion of One Half of the Performance Period; Termination for Any Reason
Other Than Retirement, Death or Long-Term Disability Prior to Payment of the Actual Award 

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

 

	 	(b)	Termination of Employment by Reason of Retirement, Death or Long-Term Disability On or After Completion of One Half of the Performance Period

 If the Participant ceases to be a bona fide employee of the Company or of its subsidiaries and affiliates, on
or after completion of one half of the Performance Period, due to Retirement, death or Long-Term Disability, the Participant (or the Participant’s Beneficiary, if payment is made on account of the death of the Participant) shall be entitled to
receive the following as soon as reasonably practicable after the end of the Performance Period, but prior to the end of the calendar year in which the Performance Period ends: 

The pro-rata portion of the Actual Award adjusted by the actual service during the Performance Period; provided, the fraction
representing the pro-rata amount shall be applied to the Actual Award, which is based on the actual performance during the Performance Period, and not the Target Award. 
 4. Effect of Change in Control. 
 In the event of the occurrence of a
Change in Control prior to the termination of the Participant’s employment with the Company, the Actual Award will be calculated and replaced with an award of restricted cash with a dollar amount equal to the dollar amount of the Actual Award
assuming attainment of target performance or actual performance achieved, if greater, as of the Change in Control and with the restrictions on such restricted cash award lapsing at the end of the Performance Period applicable to the Target Award
without regard to the Change in Control. In the event that the Participant’s employment is terminated by the Company without Cause or for Retirement, death or Long Term Disability or by the Participant for Good Reason during the vesting period
of the restricted cash award, such restricted cash award shall immediately vest and be paid out as follows: 
 The Participant
shall receive a cash payment determined based on the Performance Chart measured through the last full fiscal year completed prior to the employment 

  
 2 

 EMPLOYEES 
 termination date, and paid as soon as practicable following the employment termination date, but in no event later than the date that is the later of (i) the end of the calendar year or (ii) two
and one-half months after such Participant terminates employment. 
 5. Section 409A. 

It is the Company’s intent that the Awards under the Plan do not constitute deferred compensation subject to section 409A of the
Internal Revenue Code of 1986, as amended (“Section 409A”); however, to the extent any amount payable under the Plan, when considered together with any other payments or benefits which may be considered deferred compensation subject to
Section 409A (as determined by the Company in its reasonable judgment), would result in the imposition of additional tax under Section 409A if paid on or within six months following such termination of employment, such amount shall instead
be paid on the date that follows the date of such termination of employment by six months or such longer time as required to avoid tax liabilities under Section 409A. For purposes of this Statement of Terms and Conditions, “termination of
employment” and similar iterations, shall have the same meaning as “Separation from Service” as defined in DCAP III. 
 6. Definitions. 
 When capitalized in the text of this Statement of Terms
and Conditions the following terms shall have the meaning set forth below: 
  

	 	(a)	“Beneficiary” means the person, persons or entity designated by a Participant in accordance with any procedures established by the Committee to receive any
amounts distributable under the Plan in the event of the death of the Participant. If no Beneficiary is designated or if no designated Beneficiary is living when a distribution is to be made, then the Beneficiary shall be the Participant’s
current lawful spouse if then living or, if not, the Participant’s estate. A Participant may change or revoke a previous designation of a Beneficiary at any time. 

 

	 	(b)	“Cause” means termination of the Participant’s employment with the Company upon the Participant’s negligent or willful engagement in misconduct
which, in the sole determination of the Chief Executive Officer (or his designee), is injurious to the Company, its employees, or its customers. 

  

	 	(c)	“Change in Control” shall have the meaning set forth in Section 6 of the Plan. 

 

	 	(d)	“Committee” means the Compensation Committee of the Board of Directors of the Company. 

 

	 	(e)	“Company” means McKesson Corporation, a Delaware corporation, including its subsidiaries and affiliates. 

  
 3 

 EMPLOYEES 

	 	(f)	“DCAP III” means the McKesson Corporation Deferred Compensation Administration Plan III, as amended from time to time. 

 

	 	(g)	“Good Reason” means any of the following actions, if taken without the express written consent of the Participant: 

 

	 	(i)	Any material adverse change by the Company in the Participant’s authorities, duties, or responsibilities, which change would cause the 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; 

 

	 	(ii)	Any significant reduction in the Participant’s base salary immediately prior to the Change in Control, other than a reduction effected as part of an
across-the-board reduction affecting all Plan participants; 

  

	 	(iii)	Any material failure by the Company to comply with any of the provisions of an award (or of any employment agreement between the parties) subsequent to a Change in
Control; or 

  

	 	(iv)	The Company’s requiring the Participant to 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; 

 provided that the Participant (A) has given written notice
to the Board as to the details of the basis for such Good Reason within thirty (30) days following the date on which the Participant alleges the condition giving rise to such Good Reason initially occurs and the Company has failed to provide a
reasonable cure within thirty (30) business days after its receipt of such notice and (B) Participant’s Separation from Service occurs within ninety (90) days of the time in which the condition giving rise to such Good Reason
initially occurs. 
  

	 	(h)	“Long-Term Disability” shall mean that an individual is determined by the Social Security Administration to be totally disabled. 

 

	 	(i)	The “Performance Chart” shall be the performance measure(s) and award scale(s), specified by the Committee at the time of making the award.

  

	 	(j)	“Performance Period” is the period of time, identified by a beginning and end date, specified by the Committee at the time of making the award over which
performance is measured. 

  
 4 

 EMPLOYEES 

	 	(k)	“Plan” means the McKesson Corporation Long-Term Incentive Plan, as amended from time to time. 

 

	 	(l)	“Retirement” means Approved Retirement in accordance with the McKesson Executive Benefit Retirement Plan or having age plus service equal to or greater than
65 and designation as a retiree by the Compensation Committee of the Board. 

  

	 	(m)	“Target Award” means the amount specified by the Committee payable to a participant for the Performance Period and payable for achievement at 100%.

  
 5

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