Document:

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                                                                   Exhibit 10.43

                              MCKESSON CORPORATION

                       1998 CANADIAN STOCK INCENTIVE PLAN

                      (As Amended Through October 26, 2001)

ARTICLE I -    PURPOSE

1.1     The purpose of the McKesson Corporation 1998 Canadian Stock Incentive
        Plan (the "Plan"), is to enable McKesson Corporation (the "Company") to
        offer designated employees of Canadian subsidiaries of the Company
        performance-based stock incentives thereby attracting, retaining and
        rewarding such employees and strengthening the mutuality of interests
        between the employees and the Company's shareholders.

ARTICLE II -   DEFINITIONS

2.1     In this Plan, the following terms shall have the following meanings:

        (a)    "Article" and "Section" means an article or section of this Plan;

        (b)    "Award" means any grant approved in accordance with the terms of
               the Plan;

        (c)    "Beneficiary" means a person or persons designated by the
               Participant to succeed to, in the event of death, any outstanding
               Award held by the Participant. Any Participant may, subject to
               applicable laws and such limitations as may be prescribed by the
               Committee, designate one or more persons primarily or
               contingently as beneficiaries in writing by notice delivered to
               the Company, and may revoke such designations in writing. If a
               Participant fails effectively to designate a beneficiary, the
               Participant's estate shall be the Participant's beneficiary;

        (d)    "Board of Directors" means the board of directors of the Company;

        (e)    "Committee" means the Compensation Committee of the Board of
               Directors or such other committee, as the Board of Directors may
               appoint from time to time for the purpose of administering this
               Plan, or if at any time the Board does not have a Compensation
               Committee or does not so appoint another committee for such
               purpose, the Board of Directors;

        (f)    "Company" means McKesson Corporation and its successors and
               assigns;

        (g)    "Disability" means (i) a physical or mental condition which, in
               the judgment of the Committee based on competent medical evidence
               satisfactory to the

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               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 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;

        (h)    "Fair Market Value" means, as of any date, the composite closing
               price on such day of the Company's common shares as reported in
               The Wall Street Journal;

        (i)    "Latest Exercise Date" means the latest date on which a
               particular Option may be exercised;

        (j)    "Medis" means Medis Health and Pharmaceutical Services Inc.;

        (k)    "Notice of Grant" means a notice executed by the Company and the
               Participant to whom an Award has been granted by which the
               Committee shall notify a Participant of an Award granted to him
               in accordance with the terms of the Plan, which notice shall be
               duly executed by the Company and such Participant;

        (l)    "Option" means a right generated under the Plan to a Participant
               to purchase Shares in accordance with the terms of the Plan;

        (m)    "Optionee" means a Participant to whom an Award of an Option has
               been made;

        (n)    "Option Price" means in respect of an option, the price to be
               paid per Share by a Participant on the exercise of an Option set
               out in Section 5.2(b);

        (o)    "Participant" means an employee of Medis or a Canadian subsidiary
               of the Company who has been designated by the Committee in its
               sole discretion as being eligible to participate in the Plan;

        (p)    "Plan" means this McKesson Corporation 1998 Canadian Stock
               Incentive Plan and any schedules attached hereto, as amended and
               restated from time to time;

        (q)    "Retirement" means any retirement in accordance with the
               applicable retirement policies of the relevant Canadian
               subsidiary;

        (r)    "Shares" means common shares of the Company;

        (s)    "Stock Appreciation Right" means an Award described in Article
               IV;

        (t)    "Termination of Employment" means the termination of a
               Participant's employment with Medis, a Canadian subsidiary of the
               Company or the Company, other than as a result of death,
               Disability or Retirement;

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2.2     In this Plan, unless the context requires otherwise, references to the
        male gender include the female gender and words importing the singular
        number may be construed to extend to and include the plural number and
        vice versa.

ARTICLE III -  ADMINISTRATION

3.1     This Plan shall be administered and interpreted by the Committee. The
        Committee will construe and interpret the terms and provisions of the
        Plan and of any Award granted thereunder. The Committee may correct any
        defect, complete any omission or reconcile any inconsistency in the
        Plan, in any Notice of Grant or in any agreement relating to the Plan in
        is sole discretion and in the manner or to the extent is shall deem
        necessary.

3.2     The Committee shall have full authority to grant, pursuant to the terms
        of the Plan, to Participants Options and Stock Appreciation Rights. In
        particular, and without limitation, the Committee shall have the
        authority to:

               (i)    select the Participants to whom Awards may be granted from
                      time to time hereunder;

               (ii)   determine the terms and conditions, not inconsistent with
                      the terms of the Plan, of any Award granted hereunder,
                      including, but not limited to, any restriction or
                      limitation on transfer, any vesting schedule or
                      acceleration thereof, or any forfeiture provisions or
                      waiver thereof regarding any Award and the Shares relating
                      thereto, based on such factors as the Committee shall
                      determine, in its sole discretion; and

               (iii)  modify or waive any restrictions or limitations contained
                      in and grant extensions to or accelerate the vestings of,
                      any outstanding Awards, so long as such notifications,
                      waivers, extensions or accelerations are consistent with
                      the terms of the Plan; but no such changes shall impair
                      the rights of any Participant without his consent.

        The Chief Executive Officer of the Company shall have concurrent
        authority to grant Options to Participants, pursuant to the terms of the
        Plan and consistent with the administration of the Plan by the
        Committee, subject to the limitations of Section 5.1.

3.3     The Committee shall have full and complete authority to adopt, alter and
        repeal any administrative rules, guidelines or practices governing the
        Plan and perform all acts, including the delegation of its authority as
        it shall from time to time deem advisable.

3.4     Any decision, interpretation or other action made or taken in good faith
        by or at the direction of the Committee (or any of its members) or the
        Company arising out of or in connection with the Plan shall be within
        the absolute discretion of all and each of them, as the case may be, and
        shall be final, binding and conclusive on the Company and all employees
        and Participants and their respective Beneficiaries, heirs, executors,
        administrators, successors and assigns.

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ARTICLE IV -   SHARES AVAILABLE

4.1     The number of shares on which Options/Stock Appreciation Rights which
        may be granted will be determined at the sole discretion of the Board of
        Directors.

4.2     If the Company changes the number of issued Shares at any time for any
        reason, including by stock dividend, stock split, recapitalization,
        reorganization, exchange of shares, liquidation, combination or other
        change in corporate structure affecting the Shares or makes a
        distribution of cash or property which has a substantial impact on the
        value of the issued Shares or there is a change in the valuation
        formula, the Awards shall be appropriately adjusted by the Board of
        Directors in their sole discretion. The Board of Directors shall also
        make adjustments so that the net value of each such Award shall not be
        changed.

4.3     Except as otherwise specifically provided herein, the Committee or the
        Chief Executive Officer, as applicable, shall determine the time to make
        an Award. Each Award shall be effective on a date determined by the
        Committee; provided, however, with respect to an Option awarded by the
        Chief Executive Officer, the effective date of such Award shall be the
        later of (i) the date when [the Chief Executive Officer executes a
        document setting forth the Option Award and delivers such document to
        the Corporate Secretary for filing with the minutes of the Committee] or
        (ii) the date specified in the Award.

ARTICLE V - OPTIONS

5.1     The Committee (or the Chief Executive Officer), in its (or his)
        discretion, may grant to a Participant an Option; provided, however,
        that the Chief Executive Officer may not: (i) grant options under the
        Plan and the McKesson Corporation 1999 Stock Option and Restricted Stock
        Plan covering more than 1,000,000 shares in the aggregate; (ii) grant an
        option covering more than 100,000 shares to an individual officer or
        employee; or (iii) designate himself or any executive officer of the
        Corporation, as defined in the Rules of the New York Stock Exchange, as
        a recipient of any option granted. Options granted by the Chief
        Executive Officer shall be subject to the same terms as options granted
        by the Committee.

5.2     Options granted under this Plan shall be subject to the following terms
        and conditions and shall be in such form and contain such additional
        terms, not inconsistent with the terms of this Plan, as the Committee
        may deem desirable:

        (a)    At the time of the Award of an Option, the Committee (or the
               Chief Executive Officer) shall specify the maximum number of
               Shares which the Optionee may purchase. In exercising its (or
               his) discretion, the Committee (or the Chief Executive Officer)
               shall consider the Participant's performance and contribution to
               the success of the Company and any special circumstances
               including, but not limited to, the sustained superior performance
               of the Participant, the need to retain the Participant and the
               need to attract new employees.

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        (b)    The Option Price per Share shall be determined by the Committee
               or the Chief Executive Officer, as applicable.

        (c)    All Options are immediately exercisable upon Disability or death,
               and the Optionee or the Optionee's estate must exercise options
               within three years of the date of such death or Disability. After
               such period, all unexercised Options shall be automatically
               cancelled and any rights to such Options shall be forfeited.

        (d)    Options may be exercised in accordance with the terms of the
               Award in whole or in part at any time before the Latest Exercise
               Date, and subject to subsections (c), (g) and (h), provided that:

               (i)    the Optionee notifies the Company in writing of his intent
                      to exercise the Option in whole or in part in such form as
                      prescribed by the Company and forwards such notice to the
                      Office of the Corporate Secretary of the Company;

               (ii)   the Participant's written notice is accompanied by payment
                      in full in the amount of the aggregate Option Price for
                      such number of Shares in such form as the Company may
                      accept.

        (e)    No fractional Shares shall be issued upon the exercise of an
               Option. Accordingly, if for any reason, an Optionee would
               otherwise have become entitled to a fractional Share upon the
               exercise of an Option, he shall have the right to purchase only
               the next lower whole number of Shares and no payment or other
               adjustment will be made with respect to the fractional interests
               so disregarded.

        (f)    The interest of any Optionee shall not be transferable or
               alienable by him either by pledge, assignment or in any other
               manner whatsoever and, during his lifetime shall be vested only
               in him, but shall thereafter enure to the benefit of and be
               binding upon the Beneficiary or legal personal representatives of
               the Optionee.

        (g)    On the Optionee's Termination of Employment for any reason, other
               than by reason of the Retirement, Disability or death of the
               Optionee, the Optionee may exercise any Option for which rights
               to exercise have accrued to the Optionee at the time of
               Termination of Employment, within 3 months following the date of
               Termination of Employment. After such period, all unexercised
               Options shall be automatically cancelled and any rights to any
               Options shall be forfeited.

        (h)    Where the employment of an Optionee is terminated by reason of
               Retirement, the Optionee may exercise any Option for which rights
               to exercise have accrued to the Optionee at the time of
               Retirement within three years following the date of Retirement.
               After such period, all unexercised Options shall be automatically
               cancelled and any rights to any Options shall be forfeited.

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        (i)    The Committee may at any time offer to buy out an option
               previously granted, based on such terms and conditions as the
               Committee shall establish and communicate to the Participant at
               the time that such offer is made.

        (j)    The Committee may at any time in its sole discretion accelerate
               the right to exercise any Options.

        (k)    In the event of a Change of Control as defined in this section,
               the right to exercise Options will be accelerated such that all
               Options are immediately exercisable.

               A "Change of Control" of me Company shall be deemed to have
               occurred if any of the events set forth in any one of the
               following paragraphs shall occur:

               (i)    any "person" (as such term is used in sections 13 (d) and
                      14(d) of the Securities Exchange Act of 1934, as amended
                      (U.S.), excluding the Company or any of As affiliates, a
                      trustee or any fiduciary holding securities under an
                      employee benefit plan of the Company or any of its
                      affiliates, an underwriter temporarily holding securities
                      pursuant to an offering of such securities or a
                      corporation owned, directly or indirectly, by stockholders
                      of the Company in substantially the same proportions as
                      their ownership of the Company, is or becomes the
                      "beneficial owner" (as defined in Rule 13d-3 under the
                      Securities Exchange Act of 1934, as amended (U.S.),
                      directly or indirectly, of securities of the Company
                      representing 30% or more of the combined voting power of
                      the Company's then outstanding securities; or

               (ii)   during any period of not more than two consecutive years,
                      individuals who at the beginning of such period constitute
                      the Board and any new director (other than a director
                      designated by a Person who has entered into an agreement
                      with the Company to effect a transaction described in
                      clause (i), (iii) or (iv) or this paragraph) whose
                      election by the Board or nomination for election by the
                      Company's stockholders was approved by a vote of at least
                      two-thirds (2/3) of the directors then still in office who
                      either were directors at the beginning of the period or
                      whose election or nomination for election was previously
                      so approved, cease for any reason to constitute a majority
                      thereof; or

               (iii)  the shareholders of the Company approve a merger or
                      consolidation of the Company with any other corporation,
                      other than (A) a merger or consolidation which would
                      result in the voting securities of the Company outstanding
                      immediately prior thereto continuing to represent (either
                      by remaining outstanding or by being converted into voting
                      securities of the surviving entity), in combination with
                      the ownership of any trustee or other fiduciary holding
                      securities under an employee benefit plan of the Company,
                      at least 50% of the combined voting power of the voting
                      securities of the Company or such surviving entity
                      outstanding

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                                      -7-

                      immediately after such merger or consolidation, or (B) a
                      merger or consolidation effected to implement a
                      recapitalization of the Company (or similar transaction)
                      in which no person acquires more than 50% of the combined
                      voting power of the Company's then outstanding securities;
                      or

               (iv)   the shareholders of the Company approve a plan of complete
                      liquidation of the Company or any agreement for the sale
                      or disposition by the Company of all or substantially all
                      of the Company's assets.

               Notwithstanding the foregoing, no Change in Control shall be
               deemed to have occurred if there is consummated any transaction
               or series of integrated transactions immediately following which
               the holders of the Stock immediately prior to such transaction or
               series of transactions continue to have the same proportionate
               ownership in an entity which owns all or substantially all of the
               assets of the Company immediately prior to such transaction or
               series of transactions.

               A Change of Control shall also be deemed to occur in the event
               that 50.1% of more of the shares of Medis become owned by an
               entity other than the Company.

5.3     The Committee or the Chief Executive Officer, as applicable, shall
        notify each Optionee of the terms and conditions of the Award of an
        Option by a Notice of Grant. The Notice of Grant shall indicate the
        Option Price, the earliest and Latest Exercise Date and other terms
        relating to the Award of the Option.

5.4     As soon as practicable, after the Company's receipt of the Participant's
        written notice as specified in Section 5.2(d) and payment of the Option
        Price, the Optionee shall be entitled to receive a certificate
        representing the Shares purchased through the exercise of the Option.

5.5     An Optionee shall not have any rights as a shareholder in respect of
        Shares subject to an Option until such Shares have been paid for in full
        and issued.

5.6     The Committee may, in its discretion, provide at any time, and from time
        to time, that particular Options granted hereunder will be accompanied
        by a grant of Stock Appreciation Rights as set out in Article VI.

5.7     Any other provision of these terms and conditions to the contrary
        notwithstanding, if the Committee determines that an Optionee has
        engaged in any of the actions described in (c) below, the consequences
        set forth in (a) and (b) below shall result:

        (a)    Any outstanding Option shall immediately and automatically
               terminate, be forfeited and shall cease to be exercisable,
               without limitation, by the Optionee or his or her
               representatives, in the case of the death of the Optionee.

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        (b)    If the Optionee exercised an Option within six months prior to
               the date upon which the Company discovered that the Optionee
               engaged in any action described in (c) below, the Optionee, upon
               written notice from the Company, shall immediately pay to the
               Company the economic value realized or obtained by the exercise
               of such Option measured at the date of exercise.

        (c)    The consequences described in (a) and (b) above shall apply if
               the Optionee, either before or after termination of employment
               with Medis, the Company or its affiliates:

               (i)    Discloses to others, or takes or uses for his 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 Medis, the Company or its affiliates and obtained by
                      the Optionee during the term of his employment, whether or
                      not they are the Optionee'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 date, financial information,
                      research and development plans, processes, equipment,
                      product information and all other types and categories of
                      information as to which the Optionee knows or has reason
                      to know that Medis, the Company or its affiliates intends
                      or expects secrecy to be maintained;

               (ii)   Fails to promptly return all documents and other tangible
                      items belonging to Medis, the Company or its affiliates in
                      the Optionee'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;

               (iii)  Fails to provide Medis, the Company or its affiliates 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 Medis, the Company or its
                      affiliates. 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 Medis, the Company or its
                      affiliates at the time of the termination of the
                      Optionee's employment with Medis, the Company or its
                      affiliates;

               (iv)   Fails to inform any new employer, before accepting
                      employment, of the terms of this paragraph and of the
                      Optionee's continuing obligation to maintain the
                      confidentiality of the trade secrets and other
                      confidential information belonging to Medis, the Company
                      or its affiliates and

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                                      -9-

                      obtained by the Optionee during the term of his employment
                      with Medis, the Company or any Subsidiary;

               (v)    Induces or attempts to induce, directly or indirectly, any
                      of the customers of Medis, the Company or its affiliates,
                      employees, representatives or consultants to terminate,
                      discontinue or cease working with or for Medis, the
                      Company or its affiliates, or to breach any contract with
                      Medis, the Company or any of its affiliates, in order to
                      work with or for, or enter into a contract with, the
                      Optionee or any third party; or

               (vi)   Engages in conduct which is not in good faith and which
                      disrupts, damages, impairs or interferes with the
                      business, reputation or employees of Medis, the Company or
                      its affiliates.

        The Committee shall determine in its sole discretion whether the
        Optionee has engaged in any of the acts set forth in (i) through (vi)
        above, and its determination shall be conclusive and binding on all
        interested persons.

        Any provision of this paragraph 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 paragraph.

ARTICLE VI -   APPRECIATION RIGHTS

6.1     Stock Appreciation Rights may only be granted in conjunction with an
        Option (referred to in this Article as a "Reference Option") granted
        under the Plan.

6.2     Stock Appreciation Rights shall be subject to such terms and conditions,
        not inconsistent with the provisions of this Plan, as shall be
        determined from time to time by the Committee, including the following:

        (a)    A Stock Appreciation Right granted with respect to a Reference
               Option shall terminate and no longer be exercisable upon the
               termination or exercise of the Reference Option.

        (b)    A Stock Appreciation Right shall be exercisable only at such time
               or times and to the extent that the Reference Option to which it
               relates shall be exercisable.

        (c)    A Stock Appreciation Right may be exercised by an Optionee by
               surrendering the applicable portion of the Reference Option. The
               Participant will then have no further rights relating to the
               Reference Option.

        (d)    Upon exercising a Stock Appreciation Right, a Participant shall
               be entitled to receive an amount in cash, as determined by the
               Committee, equal in value to the excess Fair Market Value of one
               Share over the Option Price in Respect of the

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               Reference Option multiplied by the number of Shares in respect of
               which the Stock Appreciation Right shall have been exercised.

        (e)    Stock Appreciation Rights shall not be transferable except to the
               extent indicated in Subsection 5.2(i) and shall terminate in
               accordance with Subsections 5.2(c), (g) or (h).

6.3     The Committee shall notify a Participant of an Award of a Stock
        Appreciation Right by a Notice of Grant. The Notice of Grant shall
        indicate the term of the Award, the Reference Option and Option Price or
        the Fair Market Value on the date of the Award, as applicable.

ARTICLE VII -  TERMINATION OR AMENDMENT

7.1     Notwithstanding any other provision of the Plan, the Company, acting
        through its Board of Directors, may, at any time and from time to time,
        amend in whole or in part, any or all of the provisions of the Plan, or
        suspend or terminate it entirely; provided, however, that, unless
        otherwise required by law, the rights of a Participant with respect of
        any Awards granted prior to such amendment, suspension or termination,
        may not be impaired without the consent of such Participant.

ARTICLE VIII - GENERAL

8.1     This Plan is intended to be unfunded. With respect to any payments to
        which a Participant has a fixed and vested interest, but which have not
        yet been made to the Participant by the Company, nothing in the Plan
        shall give any such Participant any rights that are greater than those
        of a general creditor of the Company.

8.2     Participation in the Plan is not a guarantee of employment or of
        continued participation in the Plan in any subsequent year.

8.3     In no event shall the value of, or income arising from, any Awards under
        this Plan be treated as compensation for the purposes of any pension,
        profit sharing, life insurance, disability or any other retirement or
        welfare benefit plan now maintained or hereafter adopted by Medis, the
        Company or any of its affiliates unless such plan specifically provides
        to the contrary. Nothing herein contained shall affect Optionee's right
        to participate in and receive benefits from and in accordance with the
        then current provisions of any pensions, insurance, or other employment
        welfare plan or program offered by Medis, the Company or any of its
        affiliates.

8.4     The Company shall have the right to deduct from any payment to be made
        pursuant to the Plan, or to otherwise require, prior to the issuance or
        delivery of any Shares or the payment of any cash hereunder, payment by
        the Participant of any taxes required bylaw to be withheld. The
        Committee may permit any such withholding obligation to be satisfied by
        reducing the number of Shares otherwise deliverable or by accepting the
        delivery of previously owned Shares on account thereof.

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8.5     Except as specifically permitted hereunder, the interest of any
        Participant or Optionee under the Plan in any Award shall not be
        transferable or alienable by him and, during his lifetime, shall be
        vested only in him, but shall thereafter enure to the benefit or and be
        binding upon the Beneficiary or legal personal representatives of the
        Participant.

8.6     No member of the Board of Directors, no member of the Committee, no
        employee (including the Chief Executive Officer) nor the Company shall
        be liable for any act or failure to act hereunder, by another member or
        employee or by an agent to whom duties in connection with the
        administration of the Plan have been delegated except in circumstances
        involving bad faith, gross negligence or fraud.

8.7     The Company's obligation to issue Shares in accordance with the terms of
        the Plan and any Award hereunder is subject to compliance with the laws,
        rules and regulations of all public agencies and authorities applicable
        to the issuance and distribution of such Shares and to the listing of
        such Shares on any stock exchange on which any of the Shares of the
        Company may be listed. As a condition of participation in the Plan, all
        Participants must first agree to comply with all such laws, rules and
        regulations and to furnish to the Company all information and
        undertakings as may be required to permit compliance with such laws,
        rules and regulations.

8.8     The Plan and any Awards hereunder shall be governed by and construed in
        accordance with the laws of the Province of Ontario and the laws of
        Canada applicable therein.

8.9 The effective date of this Plan is the 28th day of January, 1998.<PAGE>
                                                                   Exhibit 10.44

                              MCKESSON CORPORATION
                        2000 EMPLOYEE STOCK PURCHASE PLAN
                       (AS AMENDED THROUGH JULY 31, 2001)

1.      PURPOSE

        The McKesson Corporation 1998 Employee Stock Purchase Plan (the "Plan")
is intended to encourage the employees of the Company and certain of its
subsidiaries to acquire a proprietary interest, or to increase their existing
proprietary interest, in the Company. The Board of Directors of the Company (the
"Board") believes that employee ownership of the Company's stock will serve as
an incentive, encouraging employees to continue their employment and to perform
diligently their duties as employees. The Plan is intended to qualify as an
"employee stock purchase plan" within the meaning of Section 423 of the Internal
Revenue Code of 1986, as amended (the "Code").

2.      STOCK RESERVED FOR THE PLAN

        The Company will reserve 6,100,000 (which number has been adjusted to
reflect the 2:1 stock split effected by the former HBO & Company on May 27,
1998, and the Exchange Ratio as defined in the Merger Agreement) shares of the
Company's common stock, $.01 par value per share ("Stock"), for purchase by
employees under the Plan. The number of shares of Stock reserved for the Plan
may further be adjusted as provided in Section 16. The shares of Stock reserved
for the Plan may be shares now or hereafter authorized but unissued, shares that
have been reacquired by the Company, or shares of treasury stock.

3.      ADMINISTRATION

        The Plan will be administered by the Compensation Committee of the Board
(the "Committee"), consisting of members of the Board designated by the Board.
The Board from time to time may remove members from, or add members to, the
Committee. Vacancies on the Committee will be filled by the Board. Subject to
the express provisions of the Plan, the Committee will have authority to
interpret the Plan, to prescribe rules and regulations for administering the
Plan, and to make all other determinations necessary or advisable in
administering the Plan. The determinations of the Committee will be final and
binding upon all persons, unless otherwise determined by the Board. A majority
of the members of the Committee will constitute a quorum, and the Committee may
act by vote of a majority of its members at a meeting at which a quorum is
present, or without a meeting by a written consent signed by all members of the
Committee. To the extent consistent with applicable law, the Committee may
delegate its duties hereunder to a sub-committee, whose members need not be
members of the Board.

<PAGE>

4.      ELIGIBILITY

        (a) Eligible Employees. Except as set forth in subsections (b) and (c)
below, all employees of the Company, and all employees of any parent
corporation, as defined in Code Section 424(e) (a "Parent") or any subsidiary
corporation as defined in Code Section 424(f) (a "Subsidiary") of the Company
that is designated by the Board as a participating Parent or Subsidiary, will be
eligible to participate in the Plan. Such employees are referred to herein as
"Employees." No person who is not an Employee will be eligible to participate in
the Plan.

        (b) Excluded Employees. The following Employees will not be eligible to
participate in the Plan:

            (i) any Employee whose customary employment is less than 20 hours
        per week or for not more than 5 months in any calendar year; and

            (ii) any Employee who, immediately after a right to purchase Stock
        is granted hereunder, would own shares of Stock, or of the stock of a
        Subsidiary, possessing 5 percent or more of the total combined voting
        power or value of all classes of such stock. In determining whether an
        Employee owns 5 percent of such shares, (A) the attribution of ownership
        rules of Code Section 424(d) will apply, and (B) an Employee will be
        deemed to own the shares of stock underlying any outstanding option
        which he has been granted (whether under the Plan or any other plan or
        arrangement); and

            (iii) effective for the first Purchase Period commencing after
        September 30, 1999 and for any subsequent Purchase Period, any Employee
        who as of the first day of any such Purchase Period has not completed a
        period of employment of at least 30 days.

5.      OFFERING DATES

        The Plan will be implemented by a continuous series of 24-month
offerings beginning on the first trading day on or after May 1 and November 1 of
each calendar year and terminating on the last trading day of the month which is
24 months later (the "Offering Periods") and six-month periods commencing on
each May 1 and November 1 and ending on the following October 31 and April 30,
during which contributions may be made toward the purchase of Stock under the
Plan (the "Accumulation Periods"). For purposes of calculating the purchase
price under Section 9, the applicable Offering Period shall be determined as
follows:

            (i) Once a Participant is enrolled in the Plan for an Offering
        Period, such Offering Period shall continue to apply to the Participant
        until the earliest of (A) the end of such Offering Period, (B) the date
        the Participant elects to discontinue contributions to the Plan and
        receive a distribution of his Cash Account, or (C) re-enrollment in a
        subsequent Offering Period under paragraph (ii) below.

            (ii) In the event that the Fair Market Value of the Stock on the
        last trading day before the commencement of the Offering Period in which
        the Participant is enrolled is higher than on the last trading day
        before the commencement of any subsequent Offering Period, the first
        Offering Period shall be canceled and the Participant shall
        automatically be re-enrolled for such subsequent Offering Period.

<PAGE>

6.      ELECTION TO PARTICIPATE

        (a) Initial Election. Each Employee who is eligible to participate in
the Plan may become a participant (a "Participant") by making an election, prior
to any Offering Date and in accordance with procedures established by the
Committee, authorizing specified regular payroll deductions over the next
succeeding Purchase Period (an "Election Form"). Each election will be expressed
as a percentage of the Employee's Compensation (as defined below), which may not
exceed 15 percent of the Employee's Compensation for any payroll period or be
less than 1 percent of the Employee's Compensation for any payroll period (or
such other maximum and minimum percentages as the Committee may determine). An
Employee's "Compensation" is his "compensation" as that term is defined in the
McKesson Corporation Profit-Sharing Investment Plan. Payroll deductions for a
Participant will be made regularly and in equal amounts during the Purchase
Period by the Company, and will be credited to a bookkeeping account established
by the Company in the name of the Participant (the "Cash Account"). No interest
will be paid on or credited to Cash Accounts.

        (b) Changes in Rate of Payroll Deductions. A Participant may change the
amount of payroll deductions elected for a Purchase Period by providing notice
in accordance with procedures established by the Committee.

        (c) Discontinuance of Contributions. At any time during a Purchase
Period, (but not later than five business days prior to the Purchase Date), a
Participant may discontinue participation in the Plan for the current Purchase
Period by providing notice in accordance with procedures established by the
Committee. Upon such discontinuance, at the Participant's election, the balance
of his Cash Account will be (i) returned to the Participant as soon as
practicable, or (ii) held in the Cash Account until the end of the Purchase
Period and applied to purchase Stock in accordance with Section 10. A
Participant who discontinues payroll deductions may recommence his participation
in the Plan as of the Offering Date for any other succeeding Purchase Period,
provided he otherwise is eligible to participate and timely files a new Election
Form with the Committee.

7.      PURCHASE PERIOD LIMITATION ON RIGHTS TO PURCHASE STOCK

        (a) In General. Subject to the annual limitations in Section 8 below,
the maximum number of shares of Stock each Participant will have the right to
purchase under the Plan during a Purchase Period is determined by dividing (i)
$12,500 by (ii) the Fair Market Value of one share of Stock on the Offering Date
for such Purchase Period.

        (b) Insufficient Shares of Stock. If at any time the number of shares of
Stock available for purchase under the Plan is insufficient to grant to each
Participant the right to purchase the full number of shares to which he
otherwise would be entitled, then each Participant will have the right to
purchase that number of available shares of Stock that is equal to the total
number of available shares of Stock multiplied by a fraction, the numerator of
which is the amount of Compensation credited to the Participant's Cash Account
for the Purchase Period, and the denominator of which is the total amount of
Compensation credited to the Cash Accounts of all Participants for the Purchase
Period.

<PAGE>

8.      ANNUAL LIMITATION ON RIGHTS TO PURCHASE STOCK

        No right to purchase shares of Stock under the Plan will be granted to
an Employee if such right, when combined with all other rights and options
granted under all of the Code Section 423 employee stock purchase plans of the
Company or any Parent or Subsidiary would permit the Employee to purchase shares
of Stock with a Fair Market Value (determined at the time the right or option is
granted) in excess of $25,000 for each calendar year in which the right or
option is outstanding at any time, determined in accordance with Code Section
423(b)(8).

9.      PURCHASE PRICE

        (a) In General. The purchase price of each share of Stock purchased at
the close of an Accumulation Period will be the lower of (i) 85 percent of the
Fair Market Value of the such share on the last trading day of such Accumulation
Period, or (ii) 85 percent of the Fair Market Value of such share on the first
day of the applicable Offering Period (as determined under Section 5).

        (b) Fair Market Value. The Fair Market Value of the Stock, as of any
date, will be equal to the closing price of the Stock on the New York Stock
Exchange ("NYSE"), for such date as reported in The Wall Street Journal. If no
transaction is reported for a particular date, Fair Market Value will be the
closing price on the closest preceding date for which any transaction is
reported. If the Stock is not traded on the NYSE, Fair Market Value will be
determined using the method established by the Committee.

10.     PURCHASE OF STOCK

        Subject to the share limitations set forth in Sections 7 and 8 above, as
of each Purchase Date, the Committee will purchase from the Company using the
funds in each Cash Account on such date, on behalf of each Participant having
funds in his Cash Account, the number of whole and fractional shares of Stock
determined by dividing the amount in such Cash Account on such date by the
purchase price determined under Section 9.

11.     STOCK ACCOUNTS

        (a) Establishment of Accounts. As soon as reasonably practicable after
each Purchase Date, the Company will deliver to a custodian selected by the
Committee (the "Custodian"), in electronic form, the total number of shares
purchased by all Participants in the Purchase Period. The Custodian will
maintain a separate "Stock Account" for each Participant, which will be credited
with the number of whole and fractional shares of Stock purchased by the
Participant under the Plan.

        (b) Withdrawals from Stock Accounts. A Participant may at any time
withdraw any whole shares of Stock credited to his Stock Account as to which the
holding period requirements of Code Section 423(a)(1) have been satisfied. As
soon as practicable after such request by a Participant, the Custodian will
cause such whole shares to be transferred in electronic form to a broker
designated by the Participant or will cause a certificate representing such
Shares to be delivered to the Participant.

<PAGE>

        (c) Rights as Shareholders. A Participant will have all of the rights of
a stockholder of the Company with respect to all of the shares of Stock credited
to his Stock Account, including the right to vote and receive dividends on such
Shares.

12.     TERMINATION OF EMPLOYMENT

        (a) Termination Other Than Due to Death, Disability or Retirement. If a
Participant terminates employment with the Company or any Parent or Subsidiary
during a Purchase Period for any reason other than death, disability, or
Retirement, then the Participant's participation in the Plan will immediately
terminate and the balance of the Participant's Cash Account will be returned to
the Participant. For purposes of the Plan, a Participant who is on an approved
leave of absence will not be considered to have terminated employment until the
91st day of such leave of absence or such longer period as the Participant's
right to re-employment is guaranteed by law or contract.

        (b) Termination Due to Death. If a Participant terminates employment
with the Company or any Parent or Subsidiary during a Purchase Period due to
death, then, at the election of the Participant's beneficiary, the balance of
the Participant's Cash Account will be (i) delivered to the beneficiary or (ii)
held in the Cash Account until the end of the Purchase Period and applied to
purchase Stock in accordance with Section 10.

        (c) Termination Due to Disability or Retirement. If a Participant
terminates employment with the Company or any Parent or Subsidiary due to
Retirement or disability no more than 3 months before the Purchase Date for a
Purchase Period, then, at the Participant's election, the balance of the
Participant's Cash Account will be (i) returned to the Participant, or (ii) held
in the Cash Account until the end of the Purchase Period and applied to purchase
Stock in accordance with Section 10. If a Participant terminates employment due
to Retirement or disability more than 3 months before the Purchase Date for a
Purchase Period, then the Participant's participation in the Plan will
immediately terminate and the balance of the Participant's Cash Account will be
returned to the Participant.

        (d) Definition of Retirement. For purposes of the Plan, Retirement will
mean the attainment by a Participant of age plus whole years of service with the
Company or any Parent or Subsidiary totaling 65 or more.

13.     BENEFICIARY

        In the event of the Participant's death, his beneficiary shall be his
surviving spouse, or if there is none, his surviving children in equal shares,
or if there are none, his estate.

14.     COMPLIANCE WITH SECURITIES LAW

        All shares of Stock issued under the Plan will be subject to such
restrictions as the Committee may deem advisable under any applicable federal or
state securities laws, and the Committee may cause a legend or legends making
reference to such restrictions to be placed on the certificates representing
such shares.

<PAGE>

15.     RIGHTS NOT TRANSFERABLE

        Neither payroll deductions credited to a Participant's account nor any
rights under the Plan may be assigned, transferred, pledged or otherwise
disposed of in any way by the Participant (other than by will or the laws of
descent and distribution or as provided in Section 13 hereof). Rights under the
Plan are exercisable during the lifetime of the Participant only by the
Participant.

16.     ADJUSTMENT IN CASE OF CHANGES AFFECTING THE COMPANY'S STOCK

        (a) In General. In the event of a subdivision or consolidation of
outstanding shares of Stock, the payment of a stock dividend thereon, stock
split, reverse stock split, or in the event of any "corporate transaction" as
defined in Treasury Regulations Section 1.425-1(a)(1)(ii) (now relating to Code
Section 424), the number of shares reserved or authorized to be reserved under
the Plan, the number and price of such shares subject to purchase pursuant to
rights outstanding hereunder, the maximum number of shares each Participant may
purchase during each Purchase Period (pursuant to Section 7) or during each
calendar year (pursuant to Section 8), and the number of shares credited to
Participants' Stock Accounts, will be adjusted in such manner as may be deemed
necessary or equitable by the Board to give proper effect to such event, subject
to the limitations of Code Section 424.

        (b) Effect of Merger. Following consummation of the Merger, outstanding
purchase rights of HBO & Company employees under the Plan remained in effect and
were assumed by the Company, with appropriate changes to reflect the issuance of
shares of Stock.

17.     FOREIGN EMPLOYEES

        To the extent permitted under Section 423 of the Code, the Committee may
provide for such special terms for Participants who are foreign nationals, or
who are employed by the Company or a Parent or Subsidiary outside of the United
States of America, as the Committee may consider necessary or appropriate to
accommodate differences in local law, tax policy or custom. Moreover, the
Committee may approve such supplements to or amendments, restatements, or
alternative versions of, this Plan as it may consider necessary or appropriate
for such purposes without thereby affecting the terms of this Plan as in effect
for any other purpose; provided, however, that no such supplements, amendments,
restatements or alternative versions will include any provisions that are
inconsistent with the terms of this Plan, as then in effect, unless this Plan
could have been amended to eliminate such inconsistency without further approval
by the shareholders of the Company, or which would cause the Plan to fail to
meet the requirements of Section 423 of the Code.

18.     AMENDMENT OF THE PLAN

        The Board may amend the Plan in any respect; provided, however, that,
any amendment (i) increasing the number of shares of Stock reserved under the
Plan (other than as provided in Section 16), or (ii) any change in the
designation of corporations whose employees may be eligible to participate in
the Plan, other than a corporation who is a Parent or a Subsidiary, must be
approved, within 12 months of the adoption of such an amendment, by the holders
of a majority of the voting power of the outstanding shares of Stock.

<PAGE>

19.     TERMINATION OF THE PLAN

        The Plan and all rights of Employees hereunder will terminate:

        (a) as of the Purchase Date on which Participants purchase a number of
shares of Stock that substantially exhausts the number of shares available for
issuance under the Plan, to such an extent that the Committee determines that no
subsequent offerings are practicable; or

        (b) at any time upon action of the Board; provided, however, that if the
Plan is terminated during any Purchase Period, any amounts in a Participant's
Cash Account will be returned to the Participant.

20.     EFFECTIVE DATE

        This Amendment and Restatement will become effective as of May 1, 2000.
For Offering Periods prior to May 1, 2000 the terms of the Plan as in effect
from time to time are applicable.

21.     GOVERNMENT AND OTHER REGULATIONS

        (a) In General. The Plan, and the grant and exercise of the rights to
purchase shares of Stock hereunder, and the Company's obligation to sell and
deliver shares of Stock, will be subject to all applicable federal, state and
foreign laws, rules and regulations, and to such approvals by any regulatory or
government agency as may, in the opinion of counsel for the Company, be
required.

        (b) Withholding Obligations. Each Participant will, no later than the
date as of which the value of any purchase right granted under the Plan first
becomes includible in the gross income of the Participant for federal income tax
purposes, pay to the Company, or make arrangements satisfactory to the Company,
regarding payment of any federal, state, or local taxes of any kind required by
law to be withheld with respect to such purchase right. The obligations of the
Company under the Plan will be conditional on the making of such payments or
arrangements and the Company will, to the extent permitted by law, have the
right to deduct any such taxes from any payment of any kind otherwise due to the
Participant.

22.     INDEMNIFICATION OF COMMITTEE

        In addition to such other rights of indemnification as they have as
directors or as members of the Committee, the members of the Committee will be
indemnified by the Company against reasonable expenses (including, without
limitation, attorneys' fees) actually and necessarily incurred in connection
with the defense of any action, suit or proceeding, or in connection with any
appeal, to which they or any of them may be a party by reason of any action
taken or failure to act under or in connection with the Plan or any right
granted hereunder, and against all amounts paid by them in settlement thereof
(provided such settlement is approved to the extent required by and in the
manner provided by the Bylaws of the Company relating to indemnification of
directors) or paid by them in satisfaction of a judgment in any such action,
suit or proceeding, except in relation to matters as to which it will be
adjudged in such action, suit or proceeding that such Committee member did not
act in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the Company.

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