Document:

TNAV EX10.34# 12.31.2014 10Q

Exhibit 10.34#

SEPARATION AGREEMENT AND RELEASE
This Separation Agreement and Release ("Agreement") is made by and between Vincent Nakayama (fka Vincent Uttley) ("Employee") and Telenav, Inc., a Delaware corporation (the "Company") (collectively referred to as the "Parties" or individually referred to as a "Party"). 
RECITALS
WHEREAS, Employee was employed by the Company; 
WHEREAS, Employee previously signed an Confidential Information and Invention Assignment Agreement with the Company dated May 5, 2014 (the "Confidentiality Agreement"); 
WHEREAS, the Company granted Employee restricted stock units (RSUs) for an aggregate of 250,000 shares of Company common stock, which RSUs remain outstanding and unvested immediately prior to the Termination Date (as defined below) under the Company's 2009 Equity Incentive Plan (the "2009 Plan"), each of which is represented by a RSU agreement between the Company and Employee (collectively, the "RSU Agreements"). Of such RSUs, the Employee holds no RSUs that are vested as of the Termination Date. 
WHEREAS, the Company and Employee entered into an offer letter dated April 3, 2014 and an Employment and Change of Control Agreement dated April 11, 2014 (collectively, the "Employment Agreements"); 
WHEREAS, the Company and Employee agreed that the Employee would terminate his employment with the Company effective October 31, 2014 (the "Termination Date"); and 
WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that the Employee may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Employee's employment with or separation from the Company. 
NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Employee hereby agree as follows: 
1.Consideration. 

a.Severance Agreement. Pursuant to the terms and conditions of the Employment Agreement, Employee is entitled to receive the following severance benefits: 

Exhibit 10.34#

i.Payment. The Company agrees to pay Employee a lump sum of severance pay at a rate equal to Employee's base salary rate ($350,000 per year), as in effect on the Termination Date, for twelve (12) months from tile Termination Date, a pro-rated portion of Employee's target bonus for t1Je fiscal year ending June 30, 2015 ($70,000) and one-half of the $100,000 signing bonus payable to you upon the six month anniversary of your employment ($50,000) (the payment will occur on the fifth day after the effective date of this Agreement) in accordance with the Company's normal payroll practices. 

ii.COBRA. The Company will reimburse Employee for the payments Employee makes for COBRA coverage for a period of twelve (12) months, provided Employee timely elects and pays for continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA"), within the time period prescribed pursuant to COBRA. COBRA reimbursements will be made by the Company to Employee consistent with the Company's normal expense reimbursement policy, provided that Employee submits documentation to the Company substantiating his payments for COBRA coverage. 
b.Signing Bonus. The Parties agree that the remaining $50,000 signing bonus to be paid twelve (12) months after the date the Employee commenced employment (May 5, 2014), May 1,2015, shall be forfeited and that the Employee is not entitled to receive such signing bonus. 
c.RSUs. The Parties agree that the number of shares of Company common stock that Employee is entitled to receive the RSUs is no shares pursuant to the RSU Agreements in accordance with the terms of such RSU Agreements. The RSUs that have not vested as of the Termination Date will terminate and be cancelled as of the Termination Date and Employee will have no further rights or entitlements with respect thereto. 
2.Benefits. Employee's health insurance benefits will cease on October 31, 2014, subject to Employee's right to continue his health insurance under COBRA. Employee's participation in all benefits and incidents of employment, including, but not limited to, vesting in stock options, and the accrual of bonuses, vacation, and paid time off, ceased as of the Termination Date.
3.Payment of Salary and Receipt of All Benefits. Employee acknowledges and represents that, other than the consideration set forth in this Agreement, the Company has paid or provided all salary, wages, bonuses, accrued vacation/paid time off, premiums, leaves, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Employee. 
4.Release of Claims. Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Company and its current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, trustees, divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the "Releasees"). Employee, on his 

Exhibit 10.34#

own behalf and on behalf of his respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, demand, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the Effective Date of this Agreement, including, without limitation: 
a.any and all claims relating to or arising from Employee's employment relationship with the Company and the termination of that relationship; 
b.any and all claims relating to, or arising from, Employee's right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law; 
c.any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;
d.any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Labor Standards Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; the Sarbanes-Oxley Act of 2002; the California Family Rights Act; the California Labor Code; the California Workers' Compensation Act; and the California Fair Employment and Housing Act; 
e.any and all claims for violation of the federal or any state constitution; 
f.any and all claims arising out of any other laws and regulations relating to employment or employment discrimination; 
g. any claim for any loss, cost, damage, or expense arising out of any dispute over the nonwithholding or other tax treatment of any of the proceeds received by Employee as a result of this Agreement; and 
h.    any and all claims for attorneys' fees and costs. 

Exhibit 10.34#

Employee agrees that the release set forth in this section will be and remain in effect in all respects as a complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement. This release does not release claims that cannot be released as a matter of law, including, but not limited to, Employee's right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company (with the understanding that any such filing or participation does not give Employee the right to recover any monetary damages against the Company; Employee's release of claims herein bars Employee from recovering such monetary relief from the Company). 
5.Acknowledgment of Waiver of Claims under ADEA. Employee acknowledges that he is waiving and releasing any rights he may have under the Age Discrimination in Employment Act of 1967 ("ADEA"), and that this waiver and release is knowing and voluntary. Employee agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Agreement. Employee acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Employee was already entitled. Employee further acknowledges that he has been advised by this writing that: (a) he should consult with an attorney prior to executing this Agreement; (b) he has twenty-one (21) days within which to consider this Agreement; (c) he has seven (7) days following his execution of this Agreement to revoke this Agreement; (d) this Agreement will not be effective until after the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law. In the event Employee signs this Agreement and returns it to the Company in less than the 21-day period identified above, Employee hereby acknowledges that he has freely and voluntarily chosen to waive the time period allotted for considering this Agreement. 
6.California Civil Code Section 1542. Employee acknowledges that he has been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows: 
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 
Employee, being aware of said code section, agrees to expressly waive any rights he may have thereunder, as well as under any other statute or common law principles of similar effect. 
7.No Pending or Future Lawsuits. Employee represents that he has no lawsuits, claims, or actions pending in his name, or on behalf of any other person or entity, against the Company or any 

Exhibit 10.34#

of the other Releasees. Employee also represents that he does not intend to bring any claims on his own behalf or on behalf of any other person or entity against the Company or any of the other Releasees. 
8.Confidentiality. Employee agrees to maintain in complete confidence the existence of this Agreement, the contents and terms of this Agreement, and the consideration for this Agreement (hereinafter collectively referred to as "Separation Information"). Except as required by law, Employee may disclose Separation Information only to his immediate family members, the Court in any proceedings to enforce the terms of this Agreement, Employee's attorney(s), and Employee's accountant and any professional tax advisor to the extent that they need to know the Separation Information in order to provide advice on tax treatment or to prepare tax returns, and must prevent disclosure of any Separation Information to all other third parties. Employee agrees that he will not publicize, directly or indirectly, any Separation Information. 
9.Trade Secrets and Confidential Information/Company Property. Employee reaffirms and agrees to observe and abide by the terms of the Confidentiality Agreement, specifically including the provisions therein regarding nondisclosure of the Company's trade secrets and confidential and proprietary information, and nonsolicitation of Company employees. Employee's signature below constitutes his certification under penalty of perjury that he has returned all documents and other items provided to Employee by the Company, developed or obtained by Employee in connection with his employment with the Company, or otherwise belonging to the Company. 
10.No Cooperation. Employee agrees that he will not knowingly encourage, counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so or as related directly to the ADEA waiver in this Agreement. Employee agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order. If approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Employee will state no more than that he cannot provide counselor assistance.
11.Nondisparagement. Employee agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees.
The Company agrees to refrain from any disparagement, defamation, libel, or slander of Employee. Employee understands that the Company's obligations under this paragraph extend only to the Company's current executive officers and only for so long as each officer is an employee of the Company.
12.Breach. In addition to the rights provided in the "Attorneys' Fees" section below, Employee acknowledges and agrees that any material breach of this Agreement, unless such breach constitutes a legal action by Employee challenging or seeking a determination in good faith of the 

Exhibit 10.34#

validity of the waiver herein under the ADEA, or of any provision of the Confidentiality Agreement will entitle the Company immediately to recover and/or cease providing the consideration provided to Employee under this Agreement and to obtain damages, except as provided by law. 
13.No Admission of Liability. Employee understands and acknowledges that this Agreement constitutes a compromise and settlement of any and all actual or potential disputed claims by Employee. No action taken by the Company hereto, either previously or in connection with this Agreement, will be deemed or construed to be (a) an admission of the truth or falsity of any actual or potential claims or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to Employee or to any third party. 
14.Nonsolicitation. Employee agrees that for a period of twelve (12) months immediately following the Effective Date of this Agreement, Employee will not directly or indirectly solicit any of the Company' s employees to leave their employment at the Company. 
15.Costs. The Parties will each bear their own costs, attorneys' fees, and other fees incurred in connection with the preparation of this Agreement.
16.Indemnification. Employee agrees to indemnify and hold harmless the Company from and against any and all loss, costs, damages, or expenses, including, without limitation, attorneys' fees or expenses incurred by the Company arising out of the breach of this Agreement by Employee, or from any false representation made herein by Employee, or from any action or proceeding that may be commenced, prosecuted, or threatened by Employee or for Employee's benefit, upon Employee's initiative, direct or indirect, contrary to the provisions of this Agreement. Employee further agrees that in any such action or proceeding, this Agreement may be pled by the Company as a complete defense, or may be assel1ed by way of counterclaim or cross-claim. 
17.Authority. The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement. Employee represents and warrants that he has the capacity to act on his own behalf and on behalf of all who might claim through him to bind them to the terms and conditions of this Agreement. Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein. 
18.No Representations. Employee represents that he has had an opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement. Employee has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement. 
19.Severability. In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent jurisdiction 

Exhibit 10.34#

or arbitrator to be illegal, unenforceable, or void, this Agreement will continue in full force and effect without said provision or portion of provision.
20.Attorneys' Fees. Except with regard to a legal action challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, in the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party will be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation, court fees, and reasonable attorneys' fees incurred in connection with such an action. 
21.Entire Agreement. This Agreement represents the entire agreement and understanding between the Company and Employee concerning the subject matter of this Agreement and Employee's employment with and separation from the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter of this Agreement and Employee' s relationship with the Company, with the exception of the Confidentiality Agreement.
22.No Oral Modification. This Agreement may only be amended in a writing signed by Employee and the Company's Chief Executive Officer.
23.Governing Law. This Agreement will be governed by the laws of the State of California, without regard for choice-of-law provisions. The Parties consent to personal and exclusive jurisdiction and venue in the State of California.
24.Effective Date. Employee understands that this Agreement will be null and void if not executed by him within twenty one (21) days. Each Party has seven (7) days after that Party signs this Agreement to revoke it. This Agreement will become effective on the eighth (8th) day after Employee signed this Agreement, so long as it has been signed by the Parties and has not been revoked by either Party before that date (the "Effective Date").
25.Counterparts. This Agreement may be executed in counterparts and by facsimile, and each counterpart and facsimile will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned.
26.Voluntary Execution of Agreement. Employee understands and agrees that he executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of his claims against the Company and any of the other Releasees. Employee acknowledges that: 
a. he has read this Agreement; 
b. he bas been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of his own choice or has elected not to retain legal counsel; 

Exhibit 10.34#

c. he understands the terms and consequences of this Agreement and of the releases it contains; and 
d. he is fully aware of the legal and binding effect of this Agreement. 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below. 

	
					
	 
	Vincent Nakayama, an individual

	Dated:  November 8, 2014
	/s/ Vincent Nakayama             

	 
	Vincent Nakayama

    
	
					
	 
	Telenav, Inc.

	Dated:  November 18, 2014
	By: /s/ HP Jin                 

	 
	Dr. HP Jin

	 
	President & CEOMCK_Exhbit 10.1_12.31.2014

Exhibit 10.1
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 October 21, 2014 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.
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

CEO

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 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 employment termination date.

CEO

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 estab-lished 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 distribu-tion 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.

		
	(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:

CEO

		
	(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;

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 a physical or mental condition in respect of which the administrator of the Company’s long-term disability plan has determined that the Participant is eligible to receive income replacement benefits; or, if the Participant is not then a participant in the Company’s long-term disability plan, a physical or mental condition that the administrator of the Company’s long-term disability plan determines would have rendered the Participant eligible to receive income replacement benefits, had the Participant been enrolled in such plan.

CEO

		
	(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%.

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 October 21, 2014 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.
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 

OFFICERS

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 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 employment termination date.    
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.

OFFICERS

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.

		
	(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;

OFFICERS

		
	(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 a physical or mental condition in respect of which the administrator of the Company’s long-term disability plan has determined that the Participant is eligible to receive income replacement benefits; or, if the Participant is not then a participant in the Company’s long-term disability plan, a physical or mental condition that the administrator of the Company’s long-term disability plan determines would have rendered the Participant eligible to receive income replacement benefits, had the Participant been enrolled in such plan.

		
	(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%.

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 October 21, 2014 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.
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. 

EMPLOYEES

		
	(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 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 employment termination date.
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.

EMPLOYEES

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 estab-lished 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 Benefi-ciary is living when a distribu-tion 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.

		
	(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;

EMPLOYEES

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 a physical or mental condition in respect of which the administrator of the Company’s long-term disability plan has determined that the Participant is eligible to receive income replacement benefits; or, if the Participant is not then a participant in the Company’s long-term disability plan, a physical or mental condition that the administrator of the Company’s long-term disability plan determines would have rendered the Participant eligible to receive income replacement benefits, had the Participant been enrolled in such plan.

		
	(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%.

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