Document:

exv4w10

 

Exhibit 4.10

FORM OF DEBT SECURITIES WARRANT AGREEMENT

McKESSON CORPORATION

and

As Warrant Agent

WARRANT AGREEMENT

Dated as of _________ __, ____

 

 

TABLE OF CONTENTS1

	 	 	 	 	 	 	 
	 	 	 	 	Page
	

	 	ARTICLE I	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	ISSUANCE, EXECUTION AND COUNTERSIGNATURE OF WARRANT CERTIFICATES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.1

	 	Issuance of Warrant Certificates
	 	 	2	 
	Section 1.2

	 	Form of Warrant Certificates
	 	 	2	 
	Section 1.3

	 	Execution and Authentication of Warrant Certificates
	 	 	2	 
	Section 1.4

	 	Temporary Warrant Certificates
	 	 	3	 
	Section 1.5

	 	Payment of Taxes
	 	 	3	 
	Section 1.6

	 	Definition of Holder
	 	 	4	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE II	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.1

	 	Warrant Price 4	 	 	 	 
	Section 2.2

	 	Duration of Warrants 4	 	 	 	 
	Section 2.3

	 	Exercise of Warrants 4	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE III	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	OTHER TERMS OF WARRANTS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.1

	 	[Call of Warrants by the Corporation
	 	 	5	 
	

	 	ARTICLE IV	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	[REGISTRATION,] EXCHANGE, TRANSFER AND

SUBSTITUTION OF WARRANT CERTIFICATES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.1

	 	[Registration,] Exchange and Transfer of Warrant Certificates
	 	 	6	 
	Section 4.2

	 	Mutilated, Destroyed, Lost or Stolen Warrant Certificates
	 	 	6	 
	Section 4.3

	 	Persons Deemed Owners
	 	 	7	 
	Section 4.4

	 	Cancellation of Warrant Certificates
	 	 	7	 

	1	 	The Table of Contents is not a part of the Warrant
Agreement.

i 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	

	 	ARTICLE V	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS

OF WARRANT CERTIFICATES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.1

	 	No Rights as Holders of Warrant Debt Securities
Conferred by Warrants or Warrant Certificates
	 	 	8	 
	Section 5.2

	 	Holder of Warrant Certificate May Enforce Rights
	 	 	8	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE VI	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	CONCERNING THE WARRANT AGENT	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.1

	 	Warrant Agent
	 	 	8	 
	Section 6.2

	 	Conditions of Warrant Agent’s Obligations
	 	 	8	 
	Section 6.3

	 	Resignation, Removal and Appointment of Successor
	 	 	10	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE VII	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.1

	 	Consolidations and Mergers of the Corporation and Sales, Leases
and Conveyances Permitted Subject to Certain Conditions
	 	 	11	 
	Section 7.2

	 	Rights and Duties of Successor Corporation
	 	 	11	 
	Section 7.3

	 	Amendment
	 	 	12	 
	Section 7.4

	 	Notice and Demands to the Corporation and Warrant Agent
	 	 	12	 
	Section 7.5

	 	Notices to Warrant Holders
	 	 	12	 
	Section 7.6

	 	Addresses
	 	 	13	 
	Section 7.7

	 	Governing Law
	 	 	13	 
	Section 7.8

	 	Delivery of Prospectus
	 	 	13	 
	Section 7.9

	 	Obtaining of Governmental Approvals
	 	 	13	 
	Section 7.10

	 	Persons Having Rights under Warrant Agreement
	 	 	13	 
	Section 7.11

	 	Headings
	 	 	13	 
	Section 7.12

	 	Counterparts
	 	 	14	 
	Section 7.13

	 	Inspection of Agreement
	 	 	14	 

ii 

 

     THIS WARRANT AGREEMENT, dated as of                     ,___, between McKesson Corporation, a
corporation duly organized and existing under the laws of the State of Delaware (the “Corporation”)
and                                         , a [corporation] [national banking association] organized and existing
under the laws of                     , as Warrant Agent (herein called the “Warrant Agent”).

     WHEREAS, the Corporation has entered into an Indenture (the “Indenture”) dated as of
                    , ___, with [                    ] as trustee (such trustee, and any successors to such
trustee, herein called the “Trustee”), providing for the issuance from time to time, in one or more
series, of its [Senior] [Senior Subordinated] [Subordinated] [Junior Subordinated] Debt Securities;
and

     WHEREAS, the Corporation proposes to sell [If Offered Debt Securities and Warrants —
[title of Debt Securities being offered] (the “Offered Debt Securities”) with] warrant certificates
(such warrant certificates and other warrant certificates issued pursuant to this Agreement herein
called the “Warrant Certificates”) evidencing one or more warrants (“Warrants” or, individually, a
“Warrant”) representing the right to purchase [title of Debt Securities purchasable through
exercise of Warrants] (the “Warrant Debt Securities”); and

     WHEREAS, the Corporation desires the Warrant Agent to act on behalf of the Corporation, and
the Warrant Agent is willing to so act, in connection with the issuance, exchange, exercise and
replacement of the Warrant Certificates, and in this Agreement wishes to set forth, among other
things, the form and provisions of the Warrant Certificates and the terms and conditions on which
they may be issued, exchanged, exercised and replaced;

     NOW, THEREFORE, in consideration of the premises and of the mutual agreements herein
contained, the parties hereto agree as follows:

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ARTICLE I

ISSUANCE, EXECUTION AND COUNTERSIGNATURE

OF WARRANT CERTIFICATES

     Section 1.1 Issuance of Warrant Certificates. [If Warrants alone — Upon
issuance, each Warrant Certificate shall evidence one or more Warrants.] [If Offered Debt
Securities and Warrants — Warrant Certificates shall be [initially] issued in units with the
Offered Debt Securities and shall [not] be separately transferable [before                     , ___(the
“Detachable Date”)]. Each such unit shall consist of a Warrant Certificate or Certificates
evidencing an aggregate of ___Warrants for each $                     principal amount of Offered Debt
Securities.] Each Warrant evidenced thereby shall represent the right, subject to the provisions
contained herein and therein, to purchase Warrant Debt Securities in the aggregate principal amount
of $                    .

     Section 1.2 Form of Warrant Certificates. The Warrant Certificates (including the
Form[s] of Exercise [and Assignment] to be set forth on the reverse thereof) shall be in
substantially the form set forth in Exhibit A hereto, shall be printed, lithographed or engraved on
steel engraved borders (or in any other manner determined by the officers executing such Warrant
Certificates, with the execution thereof by such officers conclusively evidencing such
determination) and may have such letters, numbers or other marks of identification and such legends
or endorsements placed thereon as may be required to comply with any law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any securities exchange on which
the Warrant Certificates may be listed or as may, consistently herewith, be determined by the
officers executing such Warrant Certificates, with the execution thereof by such officers
conclusively evidencing such determination.

     Section 1.3 Execution and Authentication of Warrant Certificates. The Warrant
Certificates shall be executed on behalf of the Corporation by its President and Chief Executive
Officer, one of its Vice Presidents (any reference to a Vice President of the Company herein shall
be deemed to include any Vice President of the Company whether or not designated by a number or a
word or words added before or after the title “Vice President”), its Treasurer or its Controller
under its corporate seal reproduced thereon attested to by its Secretary or any Assistant
Secretary. The signature of any of these officers on the Warrant Certificates may be manual or
facsimile.

     Warrant Certificates evidencing the right to purchase an aggregate principal amount not
exceeding $                     of Warrant Debt Securities (except as provided in Sections 1.4, 2.3(c), 4.1
and 4.2) may be executed by the Corporation and delivered to the Warrant Agent upon the execution
of this Warrant Agreement or from time to time thereafter. The Warrant Agent shall, upon receipt
of Warrant Certificates duly executed on behalf of the Corporation, authenticate Warrant
Certificates evidencing
Warrants representing the right to purchase up to $                     aggregate principal amount of
Warrant Debt Securities and shall deliver such Warrant Certificates to or upon the order of the
Corporation. Subsequent to such original issuance of the Warrant Certificates, the Warrant Agent
shall authenticate a Warrant Certificate only if the

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Warrant Certificate is issued in exchange or
substitution for one or more previously authenticated Warrant Certificates [If registered
Warrants — or in connection with their transfer], as hereinafter provided.

     Each Warrant Certificate shall be dated the date of its authentication by the Warrant Agent.

     No Warrant Certificate shall be entitled to any benefit under this Agreement or be valid or
obligatory for any purpose, and no Warrant evidenced thereby shall be exercisable, until such
Warrant Certificate has been authenticated by the manual signature of the Warrant Agent. Such
signature by the Warrant Agent upon any Warrant Certificate executed by the Corporation shall be
conclusive evidence, and the only evidence, that the Warrant Certificate so authenticated has been
duly issued hereunder.

     Warrant Certificates bearing the manual or facsimile signatures of individuals who were at the
time the proper officers of the Corporation shall bind the Corporation, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Warrant Certificates or did not hold such offices at the date of such Warrant
Certificates.

     Section 1.4 Temporary Warrant Certificates. Pending the preparation of definitive
Warrant Certificates, the Corporation may execute, and upon the order of the Corporation the
Warrant Agent shall authenticate and deliver, temporary Warrant Certificates which are printed,
lithographed, typewritten, mimeographed or otherwise produced, substantially of the tenor of the
definitive Warrant Certificates in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers executing such Warrant
Certificates may determine, with the execution thereof by such officers conclusively evidencing
such determination.

     If temporary Warrant Certificates are issued, the Corporation will cause definitive Warrant
Certificates to be prepared without unreasonable delay. After the preparation of definitive Warrant
Certificates, the temporary Warrant Certificates shall be exchangeable for definitive Warrant
Certificates upon surrender of the temporary Warrant Certificates at the corporate trust office of
the Warrant Agent [or  ___], without charge to the Holder (as defined in Section
1.6 below). Upon surrender for cancellation of any one or more temporary Warrant Certificates the
Corporation shall execute and the Warrant Agent shall authenticate and deliver in exchange therefor
definitive Warrant Certificates representing the same aggregate number of Warrants. Until so
exchanged, the temporary Warrant Certificates shall in all respects be entitled to the same
benefits under this Agreement as definitive Warrant Certificates.

 3

 

     Section 1.5 Payment of Taxes. The Corporation will pay all stamp taxes and other
duties, if any, to which, under the laws of the United States of America or any State or political
subdivision thereof, this Agreement or the original issuance of the Warrant Certificates may be
subject.

     Section 1.6 Definition of Holder. The term “Holder” as used herein shall mean [If
Offered Debt Securities and Warrants which are not immediately detachable —, prior to the
Detachable Date, the registered owner of the Offered Debt Security to which such Warrant
Certificate was initially attached, and, after such Detachable Date,] [if bearer Warrants, the
bearer of such Warrant Certificates] [if registered Warrants, the person in whose name at the time
such Warrant Certificate shall be registered upon the books to be maintained by the Warrant Agent
for that purpose pursuant to Section 4.1]. [If Offered Debt Securities and Warrants which are
not immediately detachable — Prior to the Detachable Date, the Corporation will, or will cause
the registrar of the Offered Debt Securities to, make available to the Warrant Agent current
information as to Holders of the Offered Debt Securities.]

ARTICLE II

WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS

     Section 2.1 Warrant Price. During the period from                     , ___through and
including                     , ___, each Warrant shall entitle the Holder thereof, subject to the
provisions of this Agreement, to purchase from the Corporation the principal amount of Warrant Debt
Securities stated in the Warrant Certificate at the exercise price of      % of the principal amount
thereof [plus accrued amortization, if any, of the original issue discount of the Warrant Debt
Securities] [plus accrued interest, if any, from the most recent date from which interest shall
have been paid on the Warrant Debt Securities or, if no interest shall have been paid on the
Warrant Debt Securities, from [                    , ___]. [In each case, the original issue discount
($                     for each $1,000 principal amount of Warrant Debt Securities) will be amortized
at a ___% annual rate, computed on a[n] [semi-]annual basis [using a 360-day year consisting of
twelve 30-day months].] Such exercise price of each Warrant is referred to in this Agreement as
the “Exercise Price.”

     Section 2.2 Duration of Warrants. Any Warrant evidenced by a Warrant Certificate may
be exercised at any time, as specified herein, on or after [the date thereof] [                     , ___]
and at or before 5:00 p.m. New York City time on ,                     , ___(the “Expiration Date”). Each
Warrant not exercised at or before the close of business on the
Expiration Date shall become void, and all rights of the Holder of the Warrant Certificate
evidencing such Warrant under this Agreement or otherwise shall cease.

     Section 2.3 Exercise of Warrants. (a) During the period specified in Section 2.2, any
whole number of Warrants may be exercised by surrendering the Warrant Certificate evidencing such
Warrants at the place or at the places set forth in the Warrant Certificate, with the purchase form
set forth in the Warrant Certificate duly executed, accompanied by payment in full, in lawful money
of the United States of America, [in cash or by certified check or official bank check in New York
Clearing House funds] [by surrender of the [specified aggregate amount of [identified securities]]
[by bank wire transfer in immediately available funds], of the Exercise Price for each Warrant
exercised. The date on which payment in full of the Exercise Price for a

 4

 

Warrant and the duly
executed and completed Warrant Certificate are received by the Warrant Agent shall be deemed to be
the date on which such Warrant is exercised. The Warrant Agent shall deposit all funds received by
it as payment for the exercise of Warrants to the account of the Corporation maintained with it for
such purpose and shall advise the Corporation by telephone at the end of each day on which such a
payment is received of the amount so deposited to its account. The Warrant Agent shall promptly
confirm such telephonic advice to the Corporation in writing.

               (b) The Warrant Agent shall from time to time, as promptly as practicable after the exercise
of any Warrants in accordance with the terms and conditions of this Agreement and the Warrant
Certificates, advise the Corporation and the Trustee of (i) the number of Warrants so exercised,
(ii) the instructions of each Holder of the Warrant Certificates evidencing such Warrants with
respect to delivery of the Warrant Debt Securities to which such Holder is entitled upon such
exercise, and instructions of such Holder as to delivery of Warrant Certificates evidencing the
balance, if any, of the Warrants remaining after such exercise, and (iii) such other information as
the Corporation or the Trustee shall reasonably require.

               (c) As soon as practicable after the exercise of any Warrants, the Corporation shall issue,
pursuant to the Indenture, in authorized denominations, to or upon the order of the Holder of the
Warrant Certificate evidencing such Warrants, the Warrant Debt Security or Warrant Debt Securities
to which such Holder is entitled in fully registered form, registered in such name or names as may
be directed by such Holder; and, if fewer than all of the Warrants evidenced by such Warrant
Certificate were exercised, the Corporation shall execute and an authorized officer of the Warrant
Agent shall manually authenticate and deliver a new Warrant Certificate evidencing the number of
Warrants remaining unexercised.

               (d) The Corporation shall not be required to pay any stamp or other tax or other governmental
charge required to be paid in connection with any transfer involved in the issue of the Warrant
Debt Securities; and in the event that any such transfer is involved, the Corporation shall not be
required to issue or deliver any
Warrant Debt Securities until such tax or other charge shall have been paid or it has been
established to the Corporation’s satisfaction that no such tax or other charge is due.

ARTICLE III

OTHER TERMS OF WARRANTS

     Section 3.1 [Call of Warrants by the Corporation. If Warrants issued hereunder
are callable by the Corporation — The Corporation shall have the right to call and repurchase
any or all Warrants on or after                     , ___(the “Call Date”) and upon the occurrence of
[describe events or circumstances under which Corporation may call the Warrants] (the “Call Terms”)
at a price of $                     per Warrant (the “Call Price”). Notice of such Call Price, Call Date and
Call Terms shall be given to registered holders of Warrants in the manner provided in Section 7.5.]

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ARTICLE IV

[REGISTRATION,] EXCHANGE, TRANSFER AND SUBSTITUTION OF WARRANT CERTIFICATES

     Section 4.1 [Registration,] Exchange and Transfer of Warrant Certificates. [If
registered Warrants — The Warrant Agent shall keep, at its corporate trust office [and at ],
books in which, subject to such reasonable regulations as it may prescribe, it shall register
Warrant Certificates and transfers of outstanding Warrant Certificates].

     [If Offered Debt Securities and Warrants which are not immediately detachable — Prior
to the Detachable Date, a Warrant Certificate may be exchanged or transferred only together with
the Offered Debt Security to which such Warrant Certificate was initially attached, and only for
the purpose of effecting, or in conjunction with, an exchange or transfer of such Offered Debt
Security. Additionally, on or prior to the Detachable Date, each transfer or exchange of an
Offered Debt Security [on the register of the Offered Debt Securities] shall operate also to
transfer or exchange the Warrant Certificate or Certificates to which such Offered Debt Security
was initially attached. After the Detachable Date, upon] [If Offered Debt Securities and
Warrants which are immediately detachable or if Warrants alone –- Upon] surrender at the
corporate trust office of the Warrant Agent [or                     ] of Warrant Certificates properly
endorsed [or accompanied by appropriate instruments of transfer] and accompanied by written
instructions for [transfer or] exchange, all in a form satisfactory to the Corporation and the
Warrant Agent, such Warrant Certificates may be exchanged for other Warrant Certificates [If
registered Warrants –- or may be transferred in whole or in part]; provided that Warrant
Certificates issued in exchange for [or upon transfer of] surrendered Warrant Certificates shall
evidence the same aggregate number
of Warrants as the Warrant Certificates so surrendered. No service charge shall be made for
any exchange [or transfer] of Warrant Certificates, but the Corporation may require payment of a
sum sufficient to cover any stamp or other tax or governmental charge that may be imposed in
connection with any such exchange [or transfer]. Whenever any Warrant Certificates are so
surrendered for exchange [or transfer], the Corporation shall execute and an authorized officer of
the Warrant Agent shall manually authenticate and deliver to the person or persons entitled thereto
a Warrant Certificate or Warrant Certificates as so requested. The Warrant Agent shall not be
required to effect any exchange [or transfer] which would result in the issuance of a Warrant
Certificate evidencing a fraction of a Warrant or a number of full Warrants and a fraction of a
Warrant. All Warrant Certificates issued upon any exchange [or transfer] of Warrant Certificates
shall evidence the same obligations, and be entitled to the same benefits under this Agreement, as
the Warrant Certificates surrendered for such exchange [or transfer].

     Section 4.2 Mutilated, Destroyed, Lost or Stolen Warrant Certificates. If any
mutilated Warrant Certificate is surrendered to the Warrant Agent, the Corporation shall execute
and an officer of the Warrant Agent shall manually authenticate and deliver in exchange therefor a
new Warrant Certificate of like tenor and bearing a number not

 6

 

contemporaneously outstanding. If
there shall be delivered to the Corporation and the Warrant Agent (i) evidence to their
satisfaction of the destruction, loss or theft of any Warrant Certificate and of the ownership
thereof and (ii) such security or indemnity as may be required by them to save each of them and any
agent of either of them harmless, then, in the absence of notice to the Corporation or the Warrant
Agent that such Warrant Certificate has been acquired by a bona fide purchaser, the Corporation
shall execute and upon its request an officer of the Warrant Agent shall manually authenticate and
deliver, in lieu of any such destroyed, lost or stolen Warrant Certificate, a new Warrant
Certificate of like tenor and bearing a number not contemporaneously outstanding. Upon the issuance
of any new Warrant Certificate under this Section, the Corporation may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in relation thereto
and any other expenses (including the fees and expenses of the Warrant Agent) connected therewith.
Every new Warrant Certificate issued pursuant to this Section in lieu of any destroyed, lost or
stolen Warrant Certificate shall evidence an original additional contractual obligation of the
Corporation, whether or not the destroyed, lost or stolen Warrant Certificate shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this Agreement equally and
proportionately with any and all other Warrant Certificates duly issued hereunder. The provisions
of this Section are exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Warrant
Certificates.

     Section 4.3 Persons Deemed Owners. [If Offered Debt Securities and Warrants which
are not immediately detachable — Prior to the Detachable Date, the Corporation, the Warrant
Agent and all other persons may treat the registered owner of any Offered Debt Security as the
owner
of the Warrant Certificates initially attached thereto for any purpose and as the person
entitled to exercise the rights represented by the Warrants evidenced by such Warrant Certificates,
any notice to the contrary notwithstanding. After the Detachable Date,] [If registered
Warrants — and prior to due presentment of a Warrant Certificate for registration of transfer,
the] [If Offered Debt Securities and Warrants which are immediately detachable or Warrants
alone — The] Corporation, the Warrant Agent and all other persons may treat the Holder as the
owner thereof for any purpose and as the person entitled to exercise the rights represented by the
Warrants evidenced thereby, any notice to the contrary notwithstanding.

     Section 4.4 Cancellation of Warrant Certificates. Any Warrant Certificate surrendered
for exchange[, transfer] or exercise of the Warrants evidenced thereby shall, if surrendered to the
Corporation, be delivered to the Warrant Agent, and [If Warrant Certificates are issued in
bearer form — , except as provided below,] all Warrant Certificates surrendered or so
delivered to the Warrant Agent shall be promptly cancelled by it and shall not be reissued and,
except as expressly permitted by this Agreement, no Warrant Certificate shall be issued hereunder
in lieu or in exchange thereof. [If Warrant Certificates are issued in bearer form —
Warrant Certificates delivered to the Warrant Agent in exchange for Warrant Certificates of other
denominations may be retained by the Warrant Agent for reissue as authorized hereunder.] The
Corporation may at any time deliver to the Warrant Agent for cancellation any Warrant Certificates
previously issued hereunder which the Corporation

 7

 

may have acquired in any manner whatsoever, and
all Warrant Certificates so delivered shall be promptly cancelled by the Warrant Agent. All
cancelled Warrant Certificates held by the Warrant Agent shall be disposed of, as instructed by the
Corporation, subject to applicable law.

ARTICLE V

OTHER PROVISIONS RELATING TO RIGHTS

OF HOLDERS OF WARRANT CERTIFICATES

     Section 5.1 No Rights as Holders of Warrant Debt Securities Conferred by Warrants or
Warrant Certificates. No Warrant Certificate or Warrant evidenced thereby shall entitle the
Holder thereof to any of the rights of a Holder of the Warrant Debt Securities, including, without
limitation, the right to receive the payment of principal of (or premium, if any) or interest, if
any, on the Warrant Debt Securities or to enforce any of the covenants in the Indenture.

     Section 5.2 Holder of Warrant Certificate May Enforce Rights. Notwithstanding any of
the provisions of this Agreement, any Holder of any Warrant Certificate, without the consent of the
Warrant Agent, the Trustee, the holder of any Warrant Debt Securities or the Holder of any other
Warrant Certificate,
may, on its own behalf and for its own benefit, enforce, and may institute and maintain any
suit, action or proceeding against the Corporation suitable to enforce or otherwise in respect of
its right to exercise the Warrant or Warrants evidenced by his or her Warrant Certificate in the
manner provided in the Warrant Certificates and in this Agreement.

ARTICLE VI

CONCERNING THE WARRANT AGENT

     Section 6.1 Warrant Agent. The Corporation hereby appoints as                                         
Warrant Agent of the Corporation in respect of the Warrants and the Warrant Certificates upon the
terms and subject to the conditions herein set forth, and                                          hereby
accepts such appointment. The Warrant Agent shall have the power and authority granted to and
conferred upon it in the Warrant Certificates and hereby and such further power and authority to
act on behalf of the Corporation as the Corporation may hereafter grant to or confer upon it. All
of the terms and provisions with respect to such power and authority contained in the Warrant
Certificates are subject to and governed by the terms and provisions hereof.

     Section 6.2 Conditions of Warrant Agent’s Obligations. The Warrant Agent accepts its
obligations herein set forth, upon the terms and conditions hereof, including the following, to all
of which the Corporation agrees and to all of which the rights hereunder of the Holders from time
to time of the Warrant Certificates shall be subject:

 8

 

               (a) Compensation and Indemnification. The Corporation agrees promptly to pay the
Warrant Agent the compensation to be agreed upon with the Corporation for all services rendered by
the Warrant Agent and to reimburse the Warrant Agent for reasonable out-of-pocket expenses
(including reasonable counsel fees) incurred by the Warrant Agent in connection with the services
rendered hereunder by the Warrant Agent. The Corporation also agrees to indemnify the Warrant Agent
for, and to hold it harmless against, any loss, liability or expense incurred without negligence or
bad faith on the part of the Warrant Agent, arising out of or in connection with its acting as such
Warrant Agent hereunder, including the reasonable costs and expenses of defending itself against
any claim or liability in connection with the exercise or performance at any time of its powers or
duties hereunder. The obligations of the Corporation under this subsection (a) shall survive the
exercise of the Warrant Certificates and the resignation or removal of the Warrant Agent.

               (b) Agent for the Corporation. In acting under this Warrant Agreement and in
connection with the Warrant Certificates, the Warrant Agent is acting solely as agent of the
Corporation
and does not assume any obligation or relationship of agency or trust for or with any of the
owners or Holders of the Warrant Certificates.

               (c) Counsel. The Warrant Agent may consult with counsel, which may include counsel
for the Corporation, and the written advice of such counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it hereunder in
good faith and in reliance thereon.

               (d) Documents. The Warrant Agent shall be protected and shall incur no liability for
or in respect of any action taken or omitted by it in reliance upon any notice, direction, consent,
certificate, affidavit, statement or other paper or document reasonably believed by it to be
genuine and to have been presented or signed by the proper parties.

               (e) Certain Transactions. The Warrant Agent, any of its officers, directors and
employees, or any other agent of the Corporation, in its individual or any other capacity, may
become the owner of, or acquire any interest in, any Warrant Certificates, with the same rights
that it would have if it were not such Warrant Agent, officer, director, employee or other agent,
and, to the extent permitted by applicable law, it may engage or be interested in any financial or
other transaction with the Corporation and may act on, or as depositary, trustee or agent for, any
committee or body of holders of Warrant Debt Securities or other obligations of the Corporation as
freely as if it were not such Warrant Agent, officer, director, employee or other agent. Nothing in
this Warrant Agreement shall be deemed to prevent the Warrant Agent from acting as Trustee under
the Indenture.

               (f) No Liability for Interest. The Warrant Agent shall not be under any liability for
interest on any monies at any time received by it pursuant to any of the provisions of this
Agreement or of the Warrant Certificates unless otherwise agreed to in writing by the Corporation
and the Warrant Agent and except for the negligence of the Warrant Agent.

 9

 

               (g) No Liability for Invalidity. The Warrant Agent shall not incur any liability with
respect to the validity of this Agreement or any of the Warrant Certificates.

               (h) No Responsibility for Representations. The Warrant Agent shall not be responsible
for any of the recitals or representations contained herein or in the Warrant Certificates (except
as to the Warrant Agent’s Certificate of Authentication thereon), all of which are made solely by
the Corporation.

               (i) No Implied Obligations. The Warrant Agent shall be obligated to perform such
duties as are herein and in the Warrant Certificates specifically set forth and no implied duties
or obligations shall be read into this Agreement or the Warrant Certificates against the Warrant
Agent. The Warrant Agent shall not be under any obligation to take any action hereunder which may
tend to involve it in any expense or liability, the payment of which within a reasonable time is
not, in its reasonable opinion, assured to it. The Warrant Agent shall not be accountable or under
any duty or responsibility for the use by the Corporation of any of the Warrant Certificates
authenticated by the Warrant Agent and delivered by it to the Corporation pursuant to this
Agreement or for the application by the Corporation of the proceeds of the Warrant Certificates or
any exercise of the Warrants evidenced thereby. The Warrant Agent shall have no duty or
responsibility in case of any default by the Corporation in the performance of its covenants or
agreements contained herein or in the Warrant Certificates or in the Warrant Debt Securities or in
the case of the receipt of any written demand from a Holder of a Warrant Certificate with respect
to such default, including, without limiting the generality of the foregoing, any duty or
responsibility to initiate or attempt to initiate any proceeding at law or otherwise or, except as
provided in Section 7.4 hereof, to make any demand upon the Corporation.

     Section 6.3 Resignation, Removal and Appointment of Successor. (a) The Corporation
agrees, for the benefit of the Holders from time to time of the Warrant Certificates, that there
shall at all times be a Warrant Agent hereunder until all of the Warrant Certificates are no longer
exercisable.

               (b) The Warrant Agent may at any time resign as such agent by giving written notice to the
Corporation of such intention on its part, specifying the date on which it desires its resignation
to become effective; provided that, without the consent of the Corporation, such date shall not be
less than three months after the date on which such notice is given. The Warrant Agent hereunder
may be removed at any time by the filing with it of an instrument in writing signed by or on behalf
of the Corporation and specifying such removal and the date on which the Corporation expects such
removal to become effective. Such resignation or removal shall take effect upon the appointment by
the Corporation of a successor Warrant Agent (which shall be a bank or trust company organized and
doing business under the laws of the United States of America, any State thereof or the District of
Columbia and authorized under such laws to exercise corporate trust powers) by an instrument in
writing filed with such successor Warrant Agent and the acceptance of such appointment by such
successor Warrant Agent pursuant to Section 6.3(d).

 10

 

               (c) In case at any time the Warrant Agent shall resign, or be removed, or shall become
incapable of acting, or shall be adjudged bankrupt or insolvent, or shall file a voluntary petition
in bankruptcy or make an assignment for the benefit of its creditors or consent to the appointment
of a receiver or custodian of all or any substantial part of its property, or shall admit in
writing its inability to pay or meet its debts as they mature, or if a receiver or custodian of it
or of all or any substantial part of
its property shall be appointed, or if an order of any court shall be entered approving any
petition filed by or against it under the provisions of any applicable bankruptcy or similar law,
or if any public officer shall have taken charge or control of the Warrant Agent or of its property
or affairs, a successor Warrant Agent, qualified as aforesaid, shall be appointed by the
Corporation by an instrument in writing, filed with the successor Warrant Agent. Upon the
appointment as aforesaid of a successor Warrant Agent and acceptance by the latter of such
appointment, the Warrant Agent so superseded shall cease to be Warrant Agent hereunder.

               (d) Any successor Warrant Agent appointed hereunder shall execute, acknowledge and deliver to
its predecessor and to the Corporation an instrument accepting such appointment hereunder, and
thereupon such successor Warrant Agent, without any further act, deed or conveyance, shall become
vested with all the authority, rights, powers, trusts, immunities, duties and obligations of such
predecessor with like effect as if originally named as Warrant Agent hereunder, and such
predecessor, upon payment of its charges and disbursements then unpaid, shall thereupon become
obligated to transfer, deliver and pay over, and such successor Warrant Agent shall be entitled to
receive, all monies, securities and other property on deposit with or held by such predecessor, as
Warrant Agent hereunder.

               (e) Any corporation into which the Warrant Agent hereunder may be merged or converted or any
corporation with which the Warrant Agent may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Warrant Agent shall be a party, or any corporation
succeeding to all or substantially all the corporate trust business of the Warrant Agent, provided
that it shall be qualified as aforesaid, shall be the successor Warrant Agent under this Agreement
without the execution or filing of any paper or any further act on the part of any of the parties
hereto.

ARTICLE VII

MISCELLANEOUS

     Section 7.1 Consolidations and Mergers of the Corporation and Sales, Leases and
Conveyances Permitted Subject to Certain Conditions. To the extent permitted in the Indenture,
the Corporation may consolidate with, or sell or convey all or substantially all of its assets to,
or merge with or into any other corporation.

     Section 7.2 Rights and Duties of Successor Corporation. In case of any such
consolidation, merger, sale, lease or conveyance and upon any such assumption by the successor
corporation, such successor corporation shall succeed to and be

 11

 

substituted for the Corporation,
with the same effect as if it had been named herein, and the predecessor corporation, except in the
event of a lease, shall be relieved of any further obligation under this Agreement and the
Warrants. Such
successor corporation thereupon may cause to be signed, and may issue either in its own name
or in the name of the Corporation, any or all of the Warrant Debt Securities issuable pursuant to
the terms hereof. All the Warrant Debt Securities so issued shall in all respects have the same
legal rank and benefit under the Indenture as the Warrant Debt Securities theretofore or thereafter
issued in accordance with the terms of this Agreement and the Indenture.

     In case of any such consolidation, merger, sale, lease or conveyance, such changes in
phraseology and form (but not in substance) may be made in the Warrant Debt Securities thereafter
to be issued as may be appropriate.

     Section 7.3 Amendment. This Agreement [and the Indenture] may be amended by the
parties hereto, without the consent of the Holder of any Warrant Certificate, for the purpose of
curing any ambiguity, or of curing, correcting or supplementing any defective provision contained
herein, or making such provisions in regard to matters or questions arising under this Agreement
[or the Indenture] as the Corporation may deem necessary or desirable; provided that such action
shall not adversely affect the interests of the Holders of the Warrant Certificates in any material
respect. Any amendment or supplement to this Agreement[, the Indenture] or the Warrants that has a
material adverse effect on the interests of Holders of any series of Warrants shall require the
written consent of Holders of a majority of the then outstanding Warrants of such series [(provided
that if Warrant Debt Securities have been issued, then the consent of Holders of a majority of the
then outstanding Warrants of such series and the Warrant Debt Securities voting as a class shall
instead be required)]. The consent of each Holder of a Warrant affected shall be required for any
amendment pursuant to which the Warrant Price would be increased or the number of Debt Securities
purchasable upon exercise of Warrants would be decreased. The Warrant Agent may, but shall not be
obligated to, enter into any amendment to this Agreement which affects the Warrant Agent’s own
rights, duties or immunities under this Agreement or otherwise.

     Section 7.4 Notice and Demands to the Corporation and Warrant Agent. If the Warrant
Agent shall receive any notice or demand addressed to the Corporation by the Holder of a Warrant
Certificate pursuant to the provisions of the Warrant Certificates, the Warrant Agent shall
promptly forward such notice or demand to the Corporation.

     Section 7.5 Notices to Warrant Holders. Pursuant to Sections 3.1 [add other sections
as applicable], the Corporation shall cause written notice of such Call Price, Call Date and Call
Terms [reference other items as applicable], as the case may be, to be given as soon as practicable
to the Warrant Agent and to each of the registered holders of the Warrant Certificates by first
class mail, postage prepaid, at such holder’s address appearing on the
Warrant Register. In addition to the written notice referred to in the preceding sentence,
the Corporation shall make a public announcement in a daily morning newspaper of general
circulation in                      of such Call Price, Call Date,

 12

 

and Call Terms [reference other items as
applicable], as the case may be, at least once a week for two successive weeks prior to the
implementation of such terms.

     Section 7.6 Addresses. Any communications from the Corporation to the Warrant Agent
with respect to this Agreement shall be addressed to , Attention: , and any
communications from the Warrant Agent to the Corporation with respect to this Agreement shall be
addressed to McKesson Corporation, One Post Street, San Francisco, California 94104, Attention:
Corporate Secretary (or such other address as shall be specified in writing by the Warrant Agent or
by the Corporation).

     Section 7.7 Governing Law. This Agreement and each Warrant Certificate issued
hereunder shall be governed by and construed in accordance with the laws of the State of New York
including, without limitation, Section 5-1401 of the New York General Obligations Law.

     Section 7.8 Delivery of Prospectus. The Corporation will furnish to the Warrant Agent
sufficient copies of a prospectus, appropriately supplemented, relating to the Warrant Debt
Securities (the “Prospectus”), and the Warrant Agent agrees that, upon the exercise of any Warrant
Certificate, the Warrant Agent will deliver to the person designated to receive Warrant Debt
Securities, prior to or concurrently with the delivery of such Securities, a Prospectus.

     Section 7.9 Obtaining of Governmental Approvals. The Corporation will from time to
time take all action which may be necessary to obtain and keep effective any and all permits,
consents and approvals of governmental agencies and authorities and securities acts filings under
United States Federal and State laws (including, without limitation, to the extent required, the
maintenance of the effectiveness of a registration statement in respect of the Warrant Debt
Securities under the Securities Act of 1933, as amended), which may be or become required in
connection with the exercise of the Warrant Certificates and the original issuance and delivery of
the Warrant Debt Securities.

     Section 7.10 Persons Having Rights under Warrant Agreement. Nothing in this Agreement
expressed or implied and nothing that may be inferred from any of the provisions hereof is
intended, or shall be construed, to confer upon, or give to, any person or corporation other than
the Corporation, the Warrant Agent and the Holders of the Warrant Certificates any right, remedy or
claim under or by reason
of this Agreement or of any covenant, condition, stipulation, promise or agreement hereof; and
all covenants, conditions, stipulations, promises and agreements contained in this Agreement shall
be for the sole and exclusive benefit of the Corporation and the Warrant Agent and their successors
and of the Holders of the Warrant Certificates.

     Section 7.11 Headings. The Article and Section headings herein and the Table of
Contents are for convenience of reference only and shall not affect the construction hereof.

 13

 

     Section 7.12 Counterparts. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original; but such counterparts
shall together constitute but one and the same instrument.

     Section 7.13 Inspection of Agreement. A copy of this Agreement shall be available at
all reasonable times at the principal corporate trust office of the Warrant Agent [and at 
___] for inspection by the Holder of any Warrant Certificate. The Warrant Agent may
require such Holder to submit its Warrant Certificate for inspection by it.

 14

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, and
their respective corporate seal to be hereunto affixed and attested, all as of the day and year
first above written.

	 	 	 	 	 
	 	 	McKESSON CORPORATION
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:

Title:
	[SEAL]
	 	 	 	 
	 
	 	 	 	 
	Attest:
	 	 	 	 
	 
	 	 	 	 
	  
	 	 	 	 
	 	 	[NAME OF WARRANT AGENT]
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:

Title:
	[SEAL]
	 	 	 	 
	 
	 	 	 	 
	Attest:
	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	[Assistant Secretary]
	 	 	 	 

 

 

EXHIBIT A

[FORM OF WARRANT CERTIFICATE]

[Face]

	 	 	 
	Form of Legend if Offered Debt
Securities with Warrants which are
not immediately detachable:

	 	[Prior to ___, this Warrant
Certificate may be transferred or
exchanged if and only if the [Title
of Offered Debt Security] to which
it was initially attached is so
transferred or exchanged.]
	 
	 	 
	Form of Legend if Warrants are not
immediately exercisable:

	 	[Prior to ___, Warrants
evidenced by this Warrant
Certificate cannot be exercised.]

EXERCISABLE ONLY IF AUTHENTICATED BY THE WARRANT

AGENT AS PROVIDED HEREIN

VOID AFTER THE CLOSE OF BUSINESS ON _______, ____

McKESSON CORPORATION

Warrant Certificate representing

Warrants to purchase

[Title of Warrant Debt Securities]

as described herein

	 	 	 
	No.

	 	___Warrants

     This certifies that [the bearer is the] [                                         or registered assigns is the
registered] owner of the above indicated number of Warrants, each Warrant entitling such [bearer
[If Offered Debt Securities and Warrants which are not immediately detachable —, subject
to the bearer qualifying as a “Holder” of this Warrant Certificate, as hereinafter defined]
[registered owner] to purchase, at any time [after the close of business on                     , ___, and]
on or before the close of business on                     , ___, $                     principal amount of [Title of
Warrant Debt Securities] (the “Warrant Debt Securities”) of McKesson Corporation (the
“Corporation”), issued or to be issued under the Indenture (as hereinafter defined), on the
following basis.* [During

	*	 	Complete and modify the following provisions
as appropriate to reflect the terms of the Warrants and the Warrant Debt
Securities.

A-1

 

the period from                     , ____ through and including                     , ____, each Warrant shall
entitle the Holder thereof, subject to the provisions of the Warrant Agreement (as defined below),
to purchase from the Corporation the principal amount of Warrant Debt Securities stated above in
this Warrant Certificate at the exercise price of ___% of the principal amount thereof [plus
accrued amortization, if any, of the original issue discount of the Warrant Debt Securities] [plus
accrued interest, if any, from the most recent date from which interest shall have been paid on the
Warrant Debt Securities or, if no interest shall have been paid on the Warrant Debt Securities,
from                     , ____]; [in each case, the original issue discount ($                     for each $1,000
principal amount of Warrant Debt Securities) will be amortized at a ___% annual rate, computed on
a[n] [semi-]annual basis[, using a 360-day year consisting of twelve 30-day months] [(the “Exercise
Price”)]. The Holder of this Warrant Certificate may exercise the Warrants evidenced hereby, in
whole or in part, by surrendering this Warrant Certificate, with the purchase form set forth hereon
duly completed, accompanied [by payment in full, in lawful money of the United States of America,
[in cash or by certified check or official bank check in New York Clearing House funds] [by bank
wire transfer in immediately available funds]] [by surrender of the [specified aggregate principal
amount of [identified securities]], the Exercise Price for each Warrant exercised, to the Warrant
Agent (as hereinafter defined), at the corporate trust office of [name of Warrant Agent], or its
successor as warrant agent (the “Warrant Agent”) [or at                     ,] at the addresses specified on
the reverse hereof and upon compliance with and subject to the conditions set forth herein and in
the Warrant Agreement. This Warrant Certificate may be exercised only for the purchase of Warrant
Debt Securities in the principal amount of [$1,000] or any integral multiple thereof.

     The term “Holder” as used herein shall mean [If Offered Debt Securities and Warrants which
are not immediately detachable — , prior to                     , ___(the “Detachable Date”), the
registered owner of the Corporation’s [title of Offered Debt Securities] to which such Warrant
Certificate was initially attached, and after such Detachable Date,] [the bearer of such Warrant
Certificate] [the person in whose name at the time such Warrant Certificate shall be registered
upon the books to be maintained by the Warrant Agent for that purpose pursuant to Section 4.01 of
the Warrant Agreement].

     Any whole number of Warrants evidenced by this Warrant Certificate may be exercised to
purchase Warrant Debt Securities in registered form. Upon any exercise of fewer than all of the
Warrants evidenced by this Warrant Certificate, there shall be issued to the [bearer] [registered
owner] hereof a new Warrant Certificate evidencing the number of Warrants remaining unexercised.

     This Warrant Certificate is issued under and in accordance with the Warrant Agreement dated as
of                     , ___(the “Warrant Agreement”), between the Corporation and the Warrant Agent and
is subject to the terms and provisions contained in the Warrant Agreement, to all of which terms
and provisions the Holder of this Warrant Certificate consents by acceptance hereof. Copies of the
Warrant Agreement are on file at the above-mentioned office at the Warrant Agent [and at
                    ].

A-2

 

     The Warrant Debt Securities to be issued and delivered upon the exercise of warrants evidenced
by this Warrant Certificate will be issued under and in accordance with an Indenture (the
“Indenture”), dated as of                     , ___between the Corporation and 
, as trustee (such trustee, and any successors to such trustee, the
“Trustee”) and will be subject to the terms and provisions contained in the Warrant Debt Securities
and in the Indenture. Copies of the Indenture, including the form of the Warrant Debt Securities,
are on file at the corporate trust office of the Trustee [and at                                         ].

     [If Offered Debt Securities and Warrants which are not immediately detachable — Prior
to                     , ___(the “Detachable Date”), this Warrant Certificate may be exchanged or
transferred only together with the [title of Offered Debt Security] (the “Offered Debt Security”)
to which this Warrant Certificate was initially attached, and only for the purpose of effecting, or
in conjunction with, an exchange or transfer of such Offered Debt Security. Additionally, on or
prior to the Detachable Date each transfer of such Offered Debt Security on the register of the
Offered Debt Securities shall operate also to transfer this Warrant Certificate. After the
Detachable Date, this] [If Offered Debt Securities and Warrants which are immediately
detachable or Warrants alone — This] Warrant Certificate, and all rights hereunder, may be
transferred [If bearer Warrants — by delivery and the Corporation and the Warrant Agent
may treat the bearer hereof as the owner for all purposes] [If registered Warrants — when
surrendered at the corporate trust office of the Warrant Agent [or                     ] by the registered
owner or his assigns, in person or by an attorney duly authorized in writing, in the manner and
subject to the limitations provided in the Warrant Agreement].

     [If Offered Debt Securities and Warrants which are not immediately detachable —
Except as provided in the immediately preceding paragraph, after] [If Offered Debt Securities
and Warrants which are immediately detachable or Warrants alone — After] authentication by the
Warrant Agent and prior to the expiration of this Warrant Certificate, this Warrant Certificate may
be exchanged at the corporate trust office at the Warrant Agent [or at                     ] for Warrant
Certificates representing the same aggregate number of Warrants.

     This Warrant Certificate shall not entitle the [bearer] [registered owner] hereof to any of
the rights of a [registered] [holder] of the Warrant Debt Securities, including, without
limitation, the right to receive payments of principal (and premium, if any) or interest, if any,
on the Warrant Debt Securities or to enforce any of the covenants of the Indenture.

     Reference is hereby made to the further provisions of this Warrant Certificate set forth on
the reverse hereof, which further provisions shall for all purposes have the same effect as if set
forth at this place.

     This Warrant Certificate shall not be valid or obligatory for any purpose until authenticated
by the Warrant Agent.

A-3

 

     IN WITNESS WHEREOF, the Corporation has caused this Warrant Certificate to be duly executed
under its corporate seal.

Dated:_______________

	 	 	 	 	 
	 	McKESSON CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Attest:

____________________________________

Certificate of Authentication

     This is one of the Warrant Certificates referred to in the within-mentioned Warrant Agreement.

_______________________________________

                    As Warrant Agent

By: __________________________________

                    Authorized Signature

A-4

 

[FORM OF WARRANT CERTIFICATE]

[REVERSE]

(Instructions for Exercise of Warrants)

     To exercise any Warrants evidenced hereby, the Holder of this Warrant Certificate must pay [in
cash or by certified check or official bank check in New York Clearing House funds or by bank wire
transfer in immediately available funds], the Exercise Price in full for each of the Warrants
exercised, to                     , Corporate Trust Department,                     , Attn:                      [or
                    ], which payment should specify the name of the Holder of this Warrant Certificate
and the number of Warrants exercised by such Holder. In addition, the Holder of this Warrant
Certificate should complete the information required below and present in person or mail by
registered mail this Warrant Certificate to the Warrant Agent at the addresses set forth below.

[FORM OF EXERCISE]

(To be executed upon exercise of Warrants.)

     The undersigned hereby irrevocably elects to exercise ___Warrants, represented by this
Warrant Certificate, to purchase $                     principal amount of the [Title of Warrant Debt
Securities] (the “Warrant Debt Securities”) of McKesson Corporation and represents that he has
tendered payment for such Warrant Debt Securities [in cash or by certified check or official bank
check in New York Clearing House funds or by bank wire transfer in immediately available funds] to
the order of McKesson Corporation, c/o Treasurer, in the amount of $                     in accordance with
the terms hereof. The undersigned requests that said principal amount of Warrant Debt Securities
be in fully registered form, in the authorized denominations, registered in such names and
delivered, all as specified in accordance with the instructions set forth below.

     If said principal amount of Warrant Debt Securities is less than all of the Warrant Debt
Securities purchasable hereunder, the undersigned requests that a new Warrant Certificate
representing the remaining balance of the Warrants evidenced hereby be issued and delivered to the
undersigned unless otherwise specified in the instructions below.

	 	 	 
	Dated:

	 	Name                                                                                                     
	 
	 	 
	

	 	 
	(Insert Social Security or Other
Identifying Number of Holder)

	 	Address                                                                                                     
                                                                                                                        
	 
	 	 
	Signature                                        

	 	[If registered warrant — (Signature
must conform in all respects to name
of holder as specified on the face
of the Warrant

A-5

 

	 	 	 
	

	 	Certificate and must
be guaranteed by an “eligible
guarantor institution,” that is, a
bank, stockbroker, savings and loan
association or credit union meeting
the requirements of the Warrant
Agent, which requirements include
membership or participation in the
Securities Transfer Agents Medallion
Program (“STAMP”) or such other
“signature guarantee program” as may
be determined by the Warrant Agent
in addition to, or in substitution
for, STAMP, all in accordance with
the Securities Exchange Act of 1934,
as amended.)]

  This Warrant may be exercised at the following addresses:

	 	 	 	 	 
	

	 	By hand at
	 	

	

	 	 	 	

	

	 	 	 	

	

	 	 	 	

	

	 	By mail at
	 	

	

	 	 	 	

	

	 	 	 	

	

	 	 	 	

	

	 	 	 	

(Instructions as to form and delivery of Warrant Debt Securities and/or Warrant
Certificates):

A-6

 

[FORM OF ASSIGNMENT]

(TO BE EXECUTED TO TRANSFER THE WARRANT CERTIFICATE)

FOR VALUE RECEIVED                                          hereby sells, assigns and transfers unto

	 	 	 
	

	 	

	

	 	(Please print name and
	

	 	address including zip code)

Please insert social security or other

identifying number

______________________________
 

the right represented by the within Warrant Certificate and does hereby irrevocably constitute and
appoint                                         , Attorney, to transfer said Warrant Certificate on the books of the
Warrant Agent with full power of substitution.

Dated:

	 	 	 
	

	 	 
	

	 	Signature

(Signature must conform in all respects to name
of holder as specified on the face of the Warrant
Certificate and must be guaranteed by an
“eligible guarantor institution,” that is, a
bank, stockbroker, savings and loan association
or credit union meeting the requirements of the
Warrant Agent, which requirements include
membership or participation in the Securities
Transfer Agents Medallion Program (“STAMP”) or
such other “signature guarantee program” as may
be determined by the Warrant Agent in addition
to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of
1934, as amended.)

Signature Guaranteed:

_________________________________

A-7<PAGE>

                                                                   Exhibit 10.46

                      MODIFICATION OF EMPLOYMENT AGREEMENT

         This Modification of Employment Agreement made as of this 9th day of
March, 2005, by and between Valley National Gases, Inc. ("Company"), a West
Virginia corporation and James P. Hart ("Employee").

         WITNESSETH:

         WHEREAS, Employee is deemed by Company to be a valuable executive
officer serving the Company; and

         WHEREAS, Company wishes to retain Employee as an executive officer of
the Company; and

         WHEREAS, the Company does not have any retention agreements or policies
presently in place that would affect this Employee; and

         WHEREAS, the Company and Employee have previously entered an Employment
Agreement ("Employment Agreement") which is dated the 1st day of June, 2003; and

         WHEREAS, the parties now desire to amend the Employment Agreement.

         NOW, THEREFORE, in consideration of the premises contained herein and
in that certain Employment Agreement between the parties, it is agreed as
follows:

         1.) Section 2. of the Employment Agreement is hereby amended to read as
follows:

                  Term. The Employee's employment by the Company and the initial
         term of this Agreement ("Initial Term") shall commence as of the date
         hereof and shall continue in full force and effect, unless earlier
         terminated as provided hereinafter in Section 6., until the third (3rd)
         anniversary thereof. At the conclusion of the Initial Term, Employee's
         employment with the Company may, at the Company's election, continue
         thereafter, until terminated as provided hereinafter in Section 6., on
         the terms and conditions as set forth in this Agreement. The Initial
         Term and all time of employment thereafter shall collectively be
         referred to as the "Employment Term".

         2.) Other than the amendment to the term of the Employment Agreement
above set out, there are no additional modifications to the Employment Agreement
which continues in full force and effect.

         IN WITNESS WHEREOF, the Company has caused this Modification of
Employment Agreement to be executed by authority of its Board of Directors, and
the Employee has hereunto set his hand, as of the day and year first written
above.

<PAGE>

                                             Valley National Gases, Inc.
WITNESS:

/s/  Gerald W. Zehala                    By: /s/  W.A. Indelicato
---------------------------------            -----------------------------------
                                             William A. Indelicato
                                        Its: Chief Executive Officer

WITNESS:

/s/  Gerald W. Zehala                        /s/  James P. Hart
---------------------------------            -----------------------------------
                                             James P. Hart

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