**Exhibit 10.8(e)**

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**ExhibitC**

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**HOSPIRA2004 LONG-TERM STOCK INCENTIVE PLAN**

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**NQSOTERMS**

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The Participant specifiedbelow has been granted this Option by Hospira, Inc. (the “Company”) under theterms of the Hospira 2004 Long-Term Stock Incentive Plan (the “Plan”).  The Option shall be subject to the followingterms and conditions (the “Option Terms”):

 

1.                                       Termsof Award.  The following words andphrases relating to the grant of the Option shall have the following meanings:

 

(a)                                  The“Participant” is                                       .

 

(b)                                 The“Grant Date” is                                       .

 

(c)                                  Thenumber of “Covered Shares” shall be                                       sharesof Stock.

 

(d)                                 The“Exercise Price” is $                      pershare.

 

Except where the context clearly implies to the contrary, anycapitalized term in this award shall have the meaning ascribed to that termunder the Plan.

 

2.                                       Non-QualifiedStock Option.  The Option is notintended to constitute an “incentive stock option” as that term is used in Codesection 422.

 

3.                                       Dateof Exercise.  Subject to thelimitations of the Option Terms, as of the six-month anniversary of the GrantDate, these Options may be exercised in full, provided the Expiration Date hasnot occurred prior to such date.

 

(a)                                  Notwithstandingthe foregoing provisions of this paragraph 3, the Option shall become fullyexercisable upon a Change in Control that occurs on or before the Date ofTermination.

 

(b)                                 TheOption may be exercised (prior to or following the Date of Termination) only tothe extent exercisable, based on the foregoing, as of the date of exercise.

 

(c)                                  TheCovered Shares shall continue to become exercisable pursuant to thisSection 3 until the Expiration Date (as defined in Section 4).

 

(d)                                 Notwithstandingthe foregoing provisions of this paragraph 3, in the event of termination ofemployment for reasons other than death, Disability or Retirement, the Optionmay only be exercised on or after the Date of Termination only to the extentthe Option was exercisable prior to the Date of Termination, or becameexercisable on the Date of Termination.

 

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4.                                       Expiration.  The Option shall not be exercisable afterthe Company’s close of business on the last business day that occurs prior tothe Expiration Date.  The “ExpirationDate” shall be the earliest to occur of:

 

(a)                                  thefive-year anniversary of the Grant Date;

 

(b)                                 ifthe termination of employment occurs for reasons other than death, Disability(as defined in Section 8) or Retirement (as defined in Section 8),the three-month anniversary of the Date of Termination (as defined inSection 8); provided, however, that if the Participant dies during suchthree month period following the Date of Termination, then the three-monthanniversary of the date of death;

 

(c)                                  thedate on which the Participant engages in conduct which constitutes Cause; or

 

(d)                                 thedate on which the Participant, at any time prior to the one-year anniversary ofthe Date of Termination, engages, directly or indirectly, for the benefit ofthe Participant or others, in any activity, employment or business which, inthe sole opinion and discretion of the Committee, is competitive with theCompany or any of its Subsidiaries.

 

5.                                       Methodof Option Exercise.  Subject to theOption Terms and the Plan, the Option may be exercised in whole or in part byfiling a written notice with the Secretary of the Company at its corporateheadquarters prior to the Company’s close of business on the last business daythat occurs prior to the Expiration Date. Such notice shall specify the number of shares of Stock which theParticipant elects to purchase, and shall be accompanied by payment of theExercise Price for such shares of Stock indicated by the Participant’selection. Payment may be by cash or by check payable to the Company, or exceptas otherwise provided by the Committee before the Option is exercised: (i) allor a portion of the Exercise Price may be paid by the Participant by deliveryof shares of Stock (by actual delivery or by attestation) owned by theParticipant and acceptable to the Committee having an aggregate Fair MarketValue (valued as of the date of exercise) that is equal to the amount of cashthat would otherwise be required; and (ii) the Participant may pay the ExercisePrice by authorizing a third party to sell shares of Stock (or a sufficientportion of the shares) acquired upon exercise of the Option and remit to theCompany a sufficient portion of the sale proceeds to pay the entire ExercisePrice and any tax withholding resulting from such exercise.  Except as otherwise provided by theCommittee prior to exercise, payments made with shares of Stock in accordancewith clause (i) above shall be limited to shares held by the Participant fornot less than six months prior to the payment date.  The Option shall not be exercisable if and to the extent theCompany determines that such exercise would violate applicable state or Federalsecurities laws or the rules and regulations of any securities exchange onwhich the Stock is traded and shall not be exercisable during any blackoutperiod established by the Company from time to time.

 

6.                                       Withholding.  The exercise of the Option is subject towithholding of all applicable taxes.  Atthe election of the Participant, and subject to such rules and limitations asmay be established by the Committee from time to time, such withholdingobligations may be satisfied (i) through cash payment by the Participant; (ii)through the surrender of shares of Stock

 

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by (actualdelivery or by attestation) which the Participant already owns (provided,however, that to the extent shares described in this clause (ii) are used tosatisfy more than the minimum statutory withholding obligation, as describedbelow, then, except as otherwise provided by the Committee, payments made withshares of Stock in accordance with this clause (ii) shall be limited to sharesheld by the Participant for not less than six months prior to the paymentdate); or (iii) through the surrender of shares of Stock to which theParticipant is otherwise entitled under the Plan; provided, however, that suchshares under this clause (iii) may be used to satisfy not more than theCompany’s minimum statutory withholding obligation (based on minimum statutorywithholding rates for Federal and state tax purposes, including payroll taxes,that are applicable to such supplemental taxable income).

 

7.                                       Transferability.  The Option is not transferable by theParticipant other than by will or by the laws of descent and distribution, andduring the Participant’s life, may be exercised only by the Participant.  It may not be assigned, transferred (exceptas aforesaid), pledged or hypothecated by the Participant in any way whether byoperation of law or otherwise, and shall not be subject to execution,attachment or similar process.  Anyattempt at assignment, transfer, pledge or hypothecation, or other dispositionof this Option contrary to the provisions hereof, and the levy of anyattachment or similar process upon this option, shall be null and void andwithout effect.

 

8.                                       Definitions.  For purposes of the Option Terms, words andphrases shall be defined as follows:

 

(a)                                  Cause.  The term “Cause” shall mean, in the soleopinion and discretion of the Committee, the Participant has (i) engaged in amaterial breach of the Company’s code of business conduct, (ii) committed anact of fraud, embezzlement or theft in connection with the Participant’s dutiesor in the course of employment, or (iii) wrongfully disclosed secret processesor confidential information of the Company or its subsidiaries.

 

(b)                                 Dateof Termination.  The term “Date ofTermination” means the first day occurring on or after the Grant Date on whichthe Participant is not employed by the Company or any Subsidiary, regardless ofthe reason for the termination of employment; provided that a termination ofemployment shall not be deemed to occur by reason of a transfer of theParticipant between the Company and a Subsidiary or between two Subsidiaries;and further provided that the Participant’s employment shall not be consideredterminated while the Participant is on a leave of absence from the Company or aSubsidiary approved by the Participant’s employer.  If, as a result of a sale or other transaction, the Participant’semployer ceases to be a Subsidiary (and the Participant’s employer is orbecomes an entity that is separate from the Company), and the Participant isnot, at the end of the 30-day period following the transaction, employed by theCompany or an entity that is then a Subsidiary, then****the occurrence of such transaction shall be treated as theParticipant’s Date of Termination caused by the Participant being discharged bythe employer.

 

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(c)                                  Disability.  The Term “Disability” shall mean theParticipant’s disability as defined in the Hospira Extended Disability Plan,whether or not such Participant is a participant in such disability plan, for aperiod of twelve (12) consecutive months.

 

(d)                                 Retirement.  “Retirement” of the Participant means, theoccurrence of the Participant’s Date of Termination on or after the date (i)the Participant reaches the age of 55 and has 10 years of combined service withthe Company or its subsidiaries (or with Abbott Laboratories and itsaffiliates, provided that the Participant transitioned employment from Abbottto the Company in conjunction with the distribution of the Company’s commonstock to the Abbott shareholders) (as determined by the Committee), or (ii) theParticipant retires pursuant to the provisions of any defined benefitretirement plan sponsored by the Company or its subsidiaries that is thenapplicable to the Participant, all of the foregoing as approved by theCommittee.

 

9.                                       Heirsand Successors.  The Option Termsshall be binding upon, and inure to the benefit of, the Company and itssuccessors and assigns, and upon any person acquiring, whether by merger,consolidation, purchase of assets or otherwise, all or substantially all of theCompany’s assets and business.

 

10.                                 Administration.  The authority to manage and control theoperation and administration of the Option Terms shall be vested in theCommittee, and the Committee shall have all powers with respect to the OptionTerms as it has with respect to the Plan. Any interpretation of the OptionTerms by the Committee and any decision made by it with respect to the OptionTerms is final and binding on all persons.

 

11.                                 PlanGoverns. Notwithstanding anything in the Option Terms to the contrary, theOption Terms shall be subject to the terms of the Plan, a copy of which may beobtained by the Participant from the office of the Secretary of the Company;and the Option Terms is subject to all interpretations, amendments, rules andregulations promulgated by the Committee from time to time pursuant to thePlan.

 

12.                                 NotAn Employment Contract. The Option will not confer on the Participant anyright with respect to continuance of employment or other service with theCompany or any Subsidiary, nor will it interfere in any way with any right theCompany or any Subsidiary would otherwise have to terminate or modify the termsof such Participant’s employment or other service at any time.

 

13.                                 Notices.  Any written notices provided for in theOption Terms or the Plan shall be in writing and shall be deemed sufficientlygiven if either hand delivered or if sent by fax or overnight courier, or bypostage paid first class mail. Notices sent by mail shall be deemed receivedthree business days after mailing but in no event later than the date of actualreceipt. Notices shall be directed, if to the Participant, at the Participant’saddress indicated by the Company’s records, or if to the Company, at theCompany’s principal executive office.

 

14.                                 FractionalShares. In lieu of issuing a fraction of a share upon any exercise of theOption, resulting from an adjustment of the Option pursuant to paragraph 3.4 ofthe Plan or

 

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otherwise, theCompany will be entitled to pay to the Participant an amount equal to the fairmarket value of such fractional share.

 

15.                                 NoRights As Shareholder.  TheParticipant shall not have any rights of a shareholder with respect to theshares subject to the Option, until a stock certificate has been duly issuedfollowing exercise of the Option as provided herein.

 

16.                                 Amendment.  The Option Terms may be amended inaccordance with the provisions of the Plan, and may otherwise be amended bywritten agreement of the Participant and the Company without the consent of anyother person.

 

IN WITNESS WHEREOF, theCompany has caused these presents to be executed in its name and on its behalf,all as of the Grant Date.

 
|   | Hospira,  Inc. |
|--------|----------------|
|   |           |
|   |           |
|   | By:            |   |
|   | Its:           |   |

 

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