** **

**Exhibit 10.1**

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**Summary of 2008 Terms of Employmentfor Named Executive Officers**

 

*Salary*

 
| **Officer**                                                                        | ** ** | **Salary** | ** ** |
|------------------------------------------------------------------------------------|------------|------------|------------|
| ** **                                                                         | ** ** | ** ** | ** ** |
| Christopher B. Begley,  Chairman and Chief Executive Officer                       |       | $          | 1,050,000  |   |
|                                                                               |       |       |       |
| Terrence C. Kearney, Chief  Operating Officer                                      |       | 625,000    |       |
|                                                                               |       |       |       |
| Thomas E. Werner, Senior  Vice President, Finance and Chief Financial Officer |       | 445,000    |       |
|                                                                               |       |       |       |
| Brian J. Smith, Senior  Vice President, General Counsel and Secretary              |       | 425,000    |       |
|                                                                                    |            |            |            |  |

 

The salary foreach officer took effect on March 24, 2008.  The prior year’s salary (which took effect onMarch 26, 2007) for each officer was $960,000 for Mr. Begley,$575,000 for Mr. Kearney, $405,000 for Mr. Werner, and $390,000 for Mr. Smith.

 

*AnnualCash Incentive*

 

Each is aparticipant in the Hospira Inc. 2004 Performance Incentive Plan, which is filedas Exhibit 10.9 to Hospira’s Annual Report on Form 10-K for the yearended December 31, 2007 (the “2007 Form 10-K”).  The planprovides 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% forthe chief operating officer and 1.0% for the other named executiveofficers.  The compensation committee of Hospira’s board of directors hasdiscretion to reduce, but not increase, the award from the base award. The committee will consider Hospira’s adjusted net income, net sales, cashflows and corporate well-being as factors in exercising such discretion anddetermining actual awards payable under such plan for 2008 performance.

 

*Equity*

 

Each officer is eligibleto receive option and performance share awards under the Hospira 2004 Long-TermStock Incentive Plan, which is filed as Exhibit 10.8 to Hospira’s 2007 Form 10-K.  Awards are made in the discretion of the compensation committee ofHospira’s board of directors.

 

*Changein Control and Severance Pay*

 

Each officer isparty to a change-in-control agreement in the forms filed as Exhibit 10.12(for each officer other than Mr. Werner) to Hospira’s Quarterly Report on Form 10-Qfor the quarter ended March 31, 2004, and Exhibit 10.1 (for Mr. Werner)to Hospira’s Current Report on Form 8-K filed on August 11,2006.  The agreements were amended in the forms filed as Exhibit 10.12(a)(i) (foreach officer other than Mr. Werner) and Exhibit 10.12(b)(i) (forMr. Werner) to the 2007 Form 10-K.

 

All of the namedexecutive officers, except the chairman and chief executive officer, arecovered by Hospira’s Corporate Officer Severance Plan, which provides severancepay and benefits to corporate officers and is filed as Exhibit 10.1 toHospira’s Quarterly Report on Form 10-Q for the quarter ended September 30,2007.

 

*Non-qualifiedDeferred Compensation Plan*

 

Each officer iseligible to participate in Hospira’s Non-Qualified Savings and Investment Plan,a non-qualified deferred compensation plan, which is filed as Exhibit 10.19to Hospira’s 2007 Form 10-K.

 

A description ofthe above-described items is included in Hospira’s proxy statement for the 2008Annual Meeting of Shareholders.

 

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