# **Exhibit10.1**

**Summaryof 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 eachofficer took effect on March 26, 2007.

*Annual Cash Incentive*

Each is a participant inthe Hospira Inc. 2004 Performance Incentive Plan.  The plan provides for a base award equal to2.0% of Hospira’s earnings before interest, taxes, depreciation andamortization for the chief executive officer, 1.5% for the chief operatingofficer and 1.0% for the other named executive officers.  The compensation committee of Hospira’s boardof directors has discretion to reduce, but not increase, the award from thebase award.  The committee will considerHospira’s adjusted net income, net sales, cash flows and corporate well-beingas factors in exercising such discretion and determining actual awards payableunder such plan for 2007 performance.

*Equity*

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

*Change in Control*

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

----

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

----