EXHIBIT 10.1

Summary of 2007 Terms of Employment for Named Executive Officers

Salary

Officer

 

Salary

 

Christopher B. Begley, Chief Executive Officer

 

$

960,000

 

 

 

 

 

Terrence C. Kearney, Chief Operating Officer

 

575,000

 

 

 

 

 

Edward A. Ogunro, Senior Vice President, Research and Development and Medical
Affairs, and Chief Scientific Officer

 

425,000

 

 

 

 

 

Thomas E. Werner, Senior Vice President, Finance and Chief Financial Officer

 

405,000

 

 

 

 

 

Brian J. Smith, Senior Vice President, General Counsel and Secretary

 

390,000

 

 

The salary for each officer took effect on March 26, 2007.

Annual Cash Incentive

Each is a participant in the Hospira Inc. 2004 Performance Incentive Plan.  The
plan provides for a base award equal to 2.0% of Hospira’s earnings before
interest, taxes, depreciation and amortization for the chief executive officer,
1.5% for the chief operating officer and 1.0% for the other named executive
officers.  The compensation committee of Hospira’s board of directors has
discretion to reduce, but not increase, the award from the base award.  The
committee will consider Hospira’s adjusted net income, net sales, cash flows and
corporate well-being as factors in exercising such discretion and determining
actual awards payable under such plan for 2007 performance.

Equity

Each officer is eligible to receive awards under the Hospira 2004 Long-Term
Stock Incentive Plan, which is filed as Exhibit 10.8 to Hospira’s Annual Report
on Form 10-K for the year ended December 31, 2006 (the “2006 Form 10-K”). 
 Awards are made in the discretion of the compensation committee of Hospira’s
board of directors.

Change in Control

Each officer is party to a change-in-control agreement in the forms filed as
Exhibit 10.12(a) (for each officer other than Mr. Werner) and Exhibit 10.12(b)
to the 2006 Form

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10-K.  A description of these agreements was included in Hospira’s proxy
statement for the 2007 Annual Meeting of Shareholders.

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