Document:

Exhibit 10.3

 

 

	
  

  Notice of Grant of 

  Award and Award Agreement

  	
   

  	
  Hospira, Inc.

  ID: 

  275 N. Field
  Drive

  Lake Forest, IL 60045

   

  
	
  

  [name and address of Grantee]

  	
   

  	
  

  Award Number:

  

  Plan:

  

  ID:

  	
   

  	
  

  [award#]

  

  Hospira, Inc. 2004 Stock Incentive Plan

   

  [grantee’s SSN]

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

Effective
[date], you have been granted Restricted Stock Units with respect to [# of
shares] shares of Hospira, Inc. (the Company) stock.

 

The
Restricted Stock Units are subject to the attainment of performance goals
described in the attached Term Sheet. 
Units earned will become fully vested on the date shown.

 

	
  Units

  	
   

  	
  Vest
  Type

  	
   

  	
  Full
  Vest

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [# of units]

  	
   

  	
  On Vest Date

  	
   

  	
  [vest date]

  

 

By your signature and the Company’s signature below, you and the Company agree
that these Restricted Stock Units are granted under and governed by the terms
and conditions of the Hospira 2004 Long-Term Stock Incentive Plan, the
Restricted Stock Unit Award Agreement and the administrative rules governing
the Restricted Stock Agreement, all of which are attached and made a part of
this document.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Hospira, Inc. 
  

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
  Name: Christopher B. Begley

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title: Chief Executive Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  

 

 

RESTRICTED
STOCK UNIT AWARD AGREEMENT

 

 

You have been selected to be a Participant in the
Hospira, Inc. 2004 Long-Term Stock Incentive Plan (the “Plan”), as
specified in the attached Notice of Grant of Award and Award Agreement (the “Notice”):

 

THIS AGREEMENT (“Agreement”),
effective as of the date set forth in the attached Notice, is between Hospira, Inc.,
a Delaware corporation (the “Company”) and the Grantee named in the Notice,
pursuant to the provisions of the Plan. Except where the context clearly
implies to the contrary, any capitalized term not defined in this Agreement
shall have the meaning ascribed to that term under the Plan.

 

The parties hereto agree as follows:

 

1.   Award of
Restricted Stock Units.  The Company
hereby grants to Grantee the number of restricted stock units (the “Units”) set
forth in the attached Notice subject to the terms and conditions set forth
below and in the attached Term Sheet. 
The term “Units” shall include “Earned Units” as defined in Section 2(a) below.

 

2.             Restrictions. 
The Units are being awarded to Grantee subject to the forfeiture
conditions set forth below (the “Restrictions”) which shall, unless otherwise
stated, lapse, if at all, as set forth in the attached Term Sheet.

 

(a)           The
Units are subject to the attainment of performance goals during the performance
period, as described in the attached Term Sheet.  The number of Units earned upon the
attainment of the performance goals (the “Earned Units”) shall be determined by
the Compensation Committee of the Board of Directors (the “Committee”) upon
completion of the performance period.

 

(b)           Any
Units subject to the Restrictions shall be automatically forfeited upon the
earliest to occur of the following: (i) except as provided in Section 6,
the date of the Grantee’s termination of employment with the Company or a
subsidiary for any reason other than death, Disability or Retirement; or (ii) subject
to the provisions of Section 3, the date the Grantee engages in conduct
which constitutes Restricted Activity.

 

3.             Restricted Activity.

 

(a)              Without
the prior written consent of the Committee, the Grantee shall not, while
employed by the Company and for a period of one year following the termination
of employment for any reason:

 

(i)       directly
or indirectly engage or assist any person engaging in any Competitive Business,
individually, or as an officer, director, employee, agent, consultant, owner,
partner, lender, manager, member, principal, or in any other capacity, or
render any services to any entity that is engaged in any Competitive Business;
provided, however, that the Grantee’s ownership of 1% of any class of equity
security of any entity engaged in any Competitive Business shall not be deemed
a breach of this paragraph 3(a) provided such securities are listed on a
national securities exchange or quotation system or have been registered under Section 12(g) of
the Securities Exchange Act of 1934, as amended;

 

 

 

(ii)       directly
or indirectly divert, take away, solicit, or assist others in soliciting any
current or prospective customer, supplier, independent contractor or service
provider of the Company or any affiliate or otherwise interfere with the
relationship between the Company or any affiliate and any current or
prospective customer, service provider, supplier, independent contractor or
stockholder;

 

(iii)      directly
or indirectly induce any person to leave employment with the Company, or
solicit for employment other than on behalf of the Company, offer employment
to, or employ, any person who was an employee of the Company, in each case
within six months of such inducement, solicitation, or offer; or

 

(iv)      engage
in conduct which constitutes Cause.

 

(b)         If the Grantee
engages in any activity described in paragraph 3(a) above without the
written consent of the Committee, the Company, as determined by the Committee
in its sole discretion, may terminate the Agreement as of the date on which the
Grantee engaged in such Restricted Activity, and (i) the Grantee shall pay
to the Company in cash any Financial Gain the Grantee realized from the vesting
of the Units, provided that such vesting occurred within one year from the date
that the Grantee engaged in such Restricted Activity, and (ii) if the
Restricted Activity occurs prior to the delivery of the Earned Units, the
Grantee shall forfeit the Units and this Agreement shall terminate as of the
date on which the Grantee first engaged in such Restricted Activity.

 

4.             Death, Disability or Retirement.  In the event of the death, Disability or
Retirement of the Grantee at any time during the performance period, the number
of shares of Common Stock equal to the number of Earned Units (or cash equal to
the value of the shares) will be delivered to the Grantee or the Grantee’s
personal representative, upon the determination of the number of Earned Units
after the end of the performance period, but no later than 90 days following
the end of such performance period.

 

5.             Change in Control.  In the event of a Change in Control of the
Company during the performance period, the Grantee will be deemed to have
earned an award based on the maximum performance goal established by the
Committee and a number of shares of Common Stock equal to the number of deemed
Earned Units (or cash equal to the value of the shares) will be delivered to
the Grantee no later than 90 days following such Change in Control.

 

6.             Termination of Employment.  In the event of the Grantee’s Involuntary
Termination of Employment during the performance period, the number of shares
of Common Stock equal to the number of Earned Units as of the date of such
Involuntary Termination of Employment will be delivered to the Grantee, upon
the determination of the number of Earned Units after the end of the
performance period, but no later than 90 days following the end of such
performance period. If Grantee’s termination of employment during the
performance period for reasons other than death, Disability or Retirement does
not constitute an Involuntary Termination of Employment, all Units shall be
forfeited.  The Company will not be
obligated to pay Grantee any consideration whatsoever for forfeited Units
(whether or not earned).

 

7.             Dividend Equivalents.  The provisions of this Section 7 shall
apply only if during the performance period, a dividend is paid on shares of
Hospira common stock.  In such event, the
Grantee will be credited with Dividend Equivalents that shall be subject to the
same Restrictions and other terms and conditions applicable to the Earned Units
and shall be paid out in cash as of the applicable periods specified in
Sections 4, 5, and 6.  Dividend Equivalents
will not be paid on awards earned in excess of the original number of Units
granted.

 

 

8.             Adjustments. 
If the number of outstanding shares of Common Stock is changed as a
result of stock dividend, stock split or the like without additional
consideration to the Company, the number of Units subject to this Award shall
be adjusted in accordance with the applicable provisions of the Plan pertaining
to such adjustments.

 

9.             Delivery of Certificate.  Subject to withholding of taxes as provided
in Section 10 below, the Company shall deliver to the Grantee a
certificate representing a number of shares of Common Stock equal to the number
of Earned Units on which Restrictions have lapsed plus a cash payment equal to
the value of any fractional Earned Unit then credited to the Grantee’s account,
upon the lapse of Restrictions, or at a later date specified by the Grantee in
a Notice of Deferral Election filed with the Committee within rules established
to comply with section 409A of the Internal Revenue Code of 1986, as amended,
and any regulations promulgated thereunder (“Section 409A”) and in
conformance with such deferral option forms under the Notice of Deferral
Election provided by the Company.

 

10.          Withholding Taxes. 
The Company is entitled to withhold an amount equal to the Company’s
required statutory withholding taxes for the respective tax jurisdiction
attributable to any share of Common Stock or property deliverable in connection
with the Earned Units.  Subject to such
limitations as the Company may establish from time to time, Grantee may satisfy
any withholding obligation in whole or in part by making a cash payment equal
to the amount required to be withheld.

 

11.          Nontransferability. 
Grantee may not directly or indirectly, by operation of law or
otherwise, voluntarily or involuntarily, sell, assign, pledge, encumber, charge
or otherwise transfer any of the Units subject to this Award.

 

12.          Voting and Other Rights.

 

(a)                                 Grantee shall
have no rights as a stockholder of the Company in respect of the Earned Units,
including the right to vote and to receive dividends and other distributions,
until delivery of certificates representing shares of Common Stock in
satisfaction of the Earned Units.

 

(b)                                 The grant of
Units does not confer upon Grantee any right to continue in the employ of the
Company or a subsidiary or to limit or interfere with the right of the Company
or a subsidiary, to terminate Grantee’s employment at any time.

 

(c)                                  The grant of an
award under the Plan is a one-time benefit and does not create any contractual
or other right to receive an award in the future.  Future grants, if any, will be at the sole
discretion of the Company, including, but not limited to, the timing of any
grant, the amount of the award and vesting provisions.

 

(d)                                 The Committee
retains the right to reduce the number of Units subject to this Award at any
time prior to payment or delivery based on the performance of the Grantee.

 

13.          Funding.  No
assets or shares of Common Stock shall be segregated or earmarked by the
Company in respect of any Units awarded hereunder.  The grant of Units hereunder shall not
constitute a trust and shall be solely for the purpose of recording an
unsecured contractual obligation of the Company.

 

14.          Definitions. 
For purposes of this Agreement, the following words shall have the meaning
provided below:

 

(a)                           Cause.  The term “Cause” shall mean, in the sole
opinion and discretion of the Committee, the Grantee has (i) engaged in a
material breach of the Company’s 

 

 

code of business conduct, (ii) committed an act of fraud,
embezzlement or theft in connection with the Grantee’s duties or in the course
of employment, or (iii) wrongfully disclosed secret processes or
confidential information of the Company or its subsidiaries.

 

(b)                           Competitive
Business.  The term “Competitive
Business” means any business activity in which the Company or any subsidiary is
actively engaged at the time the Grantee’s employment terminates.  For these purposes, entities deemed to be
engaged in Competitive Business include, by way of example and not limitation,
Abraxis BioScience, Inc., Baxter International Inc., Teva Pharmaceuticals,
Becton, Dickinson and Company, B. Braun Melsungen AG, Cardinal
Healthcare Inc., Fresenius Medical Care AG, Terumo Medical Corporation,
Patheon, Inc., and Edwards Lifesciences Corporation.

 

(c)                            Date of
Termination.  The term “Date
of Termination” means the first day occurring on or after grant of the award
under this Agreement on which the Grantee is not employed by the Company or any
subsidiary, regardless of the reason for the termination of employment;
provided that a termination of employment shall not be deemed to occur by
reason of a transfer of the Grantee between the Company and a subsidiary or
between two subsidiaries; and further provided that the Grantee’s employment
shall not be considered terminated while the Grantee is on a leave of absence
from the Company or a subsidiary approved by the Grantee’s employer.  If, as a result of a sale or other
transaction, the Grantee’s employer ceases to be a subsidiary (and the Grantee’s
employer is or becomes an entity that is separate from the Company), and the
Grantee is not, at the end of the 30-day period following the transaction,
employed by the Company or an entity that is then a subsidiary, then  the occurrence of such transaction shall
be treated as the Grantee’s Date of Termination caused by the Grantee being
discharged by the employer.

 

(d)                           Disability.  The term “Disability” means the Grantee
either is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period of not less
than 12 months;  or by reason of any
medically determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period of not less
than 12 months, the Grantee is receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering
employees of the Company or a subsidiary.

 

(e)                            Dividend Equivalent. “Dividend
Equivalent” means, with respect to any shares of Hospira common stock that are
to be issued pursuant to an award at the end of the performance period, an
amount equal to cash dividends that are payable to stockholders of record
during the performance period on a like number of shares of Hospira common
stock.

 

(f)                                   Financial Gain.  “Financial Gain” means the Fair Market Value
of the Common Stock on the date the Unit is deemed vested, multiplied by the
number of Units actually distributed pursuant to this Agreement, reduced by any
taxes paid in countries other than the United States, to the extent that such
taxes are not otherwise eligible for refund from the taxing authorities.

 

 

(g)                                  Involuntary Termination of
Employment.  “Involuntary
Termination of Employment” means the Grantee’s position with the Company and
its affiliates is eliminated due to a reduction in force or other restructuring
or the Grantee’s employment is otherwise terminated for reasons not related to
performance, illegal activity, failure to abide by the Company’s Code of
Conduct, or other good cause as determined by the Committee and is otherwise
considered to be involuntary.

 

(h)                                 Retirement.  “Retirement” of the Grantee means, the
occurrence of the Grantee’s Date of Termination on or after the date that the
Grantee reaches the age of 55 and has 10 years of combined service with the
Company or its subsidiaries (or with Abbott Laboratories and its affiliates,
provided that the Grantee transitioned employment from Abbott to the Company in
conjunction with the distribution of the Company’s common stock to the Abbott
shareholders) (as determined by the Committee).

 

15.          Notices.  Any
written notice under this Award shall be deemed given on the date that is two
business days after it is sent in writing, delivered either in hand, by
certified mail, return receipt requested, postage prepaid, or by Federal
Express or other recognized delivery service, which provides proof of delivery,
all delivery charges prepaid, and addressed as follows:

 

	
  To the Company:

  	
   

  	
  Hospira, Inc.

  
	
   

  	
   

  	
  275 N. Field Drive

  
	
   

  	
   

  	
  Lake Forest, IL 60045

  
	
   

  	
   

  	
  Attention: Corporate
  Secretary

  

 

To the Grantee or his or her representative at the address of the
Grantee at the time appearing in the employment records of the Company,
currently as shown in the attached Notice or

 

At such other address as either party may designate by notice given to
the other in accordance with these provisions.

 

16.          Governing Law. 
All questions concerning the construction, validity and interpretation
of this Award shall be governed by and construed according to the internal law
and not the law of conflicts of the State of Illinois.

 

17.          Amendment. 
This Agreement may be amended in accordance with the provisions of the
Plan, and may otherwise be amended by written agreement of the Grantee and the
Company without the consent of any other person; provided that the Committee
may amend by the Company as it shall deem necessary and appropriate in its sole
discretion to comply with the requirements of Section 409A.

 

18.          Plan Documents. 
The Plan and the Prospectus for the Hospira, Inc. 2004 Long Term
Incentive Plan are available at:

 

http://www.UBS.com/

 

or from:

 

Mr. Doug Owens

 

Corporate Compensation,
Hospira, Inc.

 

 

Mail Stop  H1 South, 275 N. Field Drive, Lake Forest,
IL  60045

 

phone:  224-212-2962; fax:  224-212-3358; e-mail:  doug.owens@Hospira.com

 

	
   

  	
   

  	
   

  	
   

  	
   

   

   

  	
   

  
	
  

  GRANTEE’S INITIALS

  	
  

  INITIALS OF HOSPIRA, INC.’S

  General Counsel and Secretary

  

 

 

 

 

2008 — 2010 Total Shareholder Return (TSR) TERM SHEET

 

 

	
  PERFORMANCE
  PERIOD:

   

  	
  Beginning
  January 1, 2008, and ending December 31, 2010.

  
	
  PERFORMANCE
  GOAL:

  	
  ·      Relative Total Shareholder Return (“RTSR”)
  compared to peer companies (identified in Appendix I) is the FY08-10
  performance measure. Relative Total Shareholder Return is defined as the
  percentile rank of Hospira’s Total Shareholder Return compared to the Total
  Shareholder Return of Hospira’s peer companies over the Performance
  Period.  Total Shareholder Return is
  the annualized rate of return on a share of common stock, reflecting stock
  price appreciation plus reinvestment of dividends and the compounding effect
  of dividends, adjusted appropriately to reflect stock splits, spin-offs and
  similar transactions.

   

  

 

The
Base Price of Hospira’s common stock, and each peer company’s common stock, is
the average of the closing prices for the last 30 trading days before the start
of Performance Period. The average closing price for the last 30 trading days
of FY07 preceding the FY08-10 Performance Period is XXX and serves as the base
for relative comparisons over the Performance Period.

 

The
payment levels at various percentile rankings against the peer companies are
shown in the following table:

 

	
   

  	
  HOSPIRA 

  %Percentile Rank

  	
   

  	
  % of Units

  Earned

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  75th

  	
   

  	
  200%

  	
   

  
	
   

  	
  70th

  	
   

  	
  180%

  	
   

  
	
   

  	
  65th

  	
   

  	
  160%

  	
   

  
	
   

  	
  60th

  	
   

  	
  140%

  	
   

  
	
   

  	
  55th

  	
   

  	
  120%

  	
   

  
	
   

  	
  50th

  	
   

  	
  100%

  	
   

  
	
   

  	
  45th

  	
   

  	
  85%

  	
   

  
	
   

  	
  40th

  	
   

  	
  70%

  	
   

  
	
   

  	
  35th

  	
   

  	
  55%

  	
   

  
	
   

  	
  30th

  	
   

  	
  40%

  	
   

  
	
   

  	
  25th

  	
   

  	
  25%

  	
   

  
	
   

  	
  <25th

  	
   

  	
  0%

  	
   

  
	
   

  	
  ·

  ·

  	
  With linear interpolation between percentiles

  Percentile rank includes HOSPIRA

  
						

 

Earnout
Opportunities During the Performance Period:

 

 

·                  The Program provides the opportunity for the
interim earnout of up to one-quarter of the Units originally granted both at
the end of FY08 and again at the end of the FY 08-09 period (in this case
cumulative TSR for a two-year period) based upon the individual percentile
ranking for these two distinct measurement periods.  The maximum interim earnout during the
Performance Period is capped at one-quarter of Units originally granted for
each of the two interim measurement periods, even if the interim measurement
period’s performance results are above the 50th percentile.

 

·                  Any Units earned during the interim
measurement periods are effectively converted to service-based restricted stock
units (RSUs) and are then subject to the Grantee’s continued employment with
Hospira until end of the 3-year Performance Period.

 

·                  The Program also provides the opportunity for
the cumulative earnout of up to 200% of the original Units granted, with the
maximum payout level for the entire Performance Period, at end of the full
3-year Performance Period, being the greater of (i) the maximum payout
level for the entire 3-year Performance Period or (ii) the total of any
Units earned during the interim measurement periods.

 

 

 

The
following examples show how the interim measurement feature works:

 

Example 1:

Assumptions:

·                  1,500 Units originally
granted

·                  Year 1 performance (FY08) =
25th %ile

·                  Years 1 & 2
(FY08-09) cumulative performance = 55th%ile

·                  Years 1 through 3 (FY08-10)
cumulative performance = 50th%ile

 

	
  Earnout:

  	
   

  	
   

  	
  Earned

  
	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
  Year 1: 25th percentile results = 25%
  interim earnout level based upon actual results during the interim
  measurement period

  	
   

  	
   

  
	
   

  	
  ·

  	
  25% X (1/4 of original PSU grant of 1,500 Units)

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  25% X 375 = 94 Units earned and converted to RSUs

  	
   

  	
  94

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
  Years 1 & 2: 55th percentile
  results = 120% earnout level based upon actual results but earnout is capped
  at 100% during interim meas urement period

  	
   

  	
   

  
	
   

  	
  ·

  	
  100% X (1/4 of original PSU grant of 1,500 Units)

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  100%(1) X 375 = 375 Units earned and
  converted to RSUs

  	
   

  	
  375

  	
   

  
	
  Cumulative Subtotal of Interim Earnout

  	
  469

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
  Years 1 - 3: 50th percentile results =
  100% earnout level based upon actual results for full 3-year Performance
  Period

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  100% X 1,500 original PSU grant = 1,500 Units earned

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
  1,500

  	
  (2)

  
										

 

(1) Interim earnout potential is
capped at 100%

(2) The 469
Units earned over the first two years of the Performance Period are included in
this 1,500 PSU Total, i.e., an additional 1,031 Units are earned for the full
three-year Performance Period results.

 

 

	
  VESTING:

  	
  Subject
  to the terms of the Restricted Stock Unit Award Agreement, restrictions on
  the restricted stock units earned during the performance period, as
  determined above, will lapse on December 31, 2010, if the Grantee is a
  full-time active employee of the Company on that date.

   

  Final
  determination and distribution of the number of restricted stock units earned
  will be made after the actual TSR growth during the performance period has
  been certified by Hospira, Inc.’s independent auditor and the Audit
  Committee of the Company’s Board of Directors.

  

 

Example 2:

Assumptions:

·                  1,500 Units originally
granted

·                  Year 1 performance = 25th
%ile

·                  Years 1& 2 cumulative
performance = 100th%ile

·                  Years 1-3 cumulative
performance = 10th%ile

 

	
  Earnout:

  	
   

  	
   

  	
  Earned

  
	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
  Year 1:  25th percentile results = 25%
  earnout level based upon actual results during the interim measurement period

  	
   

  
	
   

  	
  ·

  	
  25% X (1/4 of original PSU
  grant of 1,500 Units)

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  25% X 375 = 94 Units
  earned and converted to RSUs 

  	
   

  	
  94

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
  Years 1 & 2:  100th percentile results = 100%
  earnout level based upon actual results during interim measurement period

  	
   

  	
   

  
	
   

  	
  ·

  	
  100% X (1/4 of original
  PSU grant of 1,500 Units)

  	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  100% X 375 = 375 Units
  earned and converted to RSUs

  	
   

  	
  375

  	
   

  
	
   

  	
   

  	
  1,000

  	
   

  
	
  Cumulative Subtotal

  	
   

  	
   

  	
  469

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
  Years 1-3 :  10th  percentile results = 0%
  earnout level based upon actual results for full 3-year Performance Period

  	
   

  	
   

  
	
   

  	
  ·

  	
  0% X 1,500 original PSU
  grant = 0 Units earned

  	
   

  	
   

  	
   

  
	
  TOTAL 

  	
   

  	
   

  	
  469

  	
  (2)

  
											

 

(2) Even though the final
performance earns a cumulative 0% payout, the Grantee had an interim earnout of
469 Units for year 1 and years 1&2

 

 

Appendix I

 

Peer Companies for Relative TSR Comparison

 

	
  Ticker

  	
   

  	
  Company Name

  	
   

  	
  Sector

  
	
  ABT

  	
   

  	
  Abbott
  Labs

  	
   

  	
  Health
  Care

  
	
  AGN

  	
   

  	
  Allergan
  Inc.

  	
   

  	
  Health
  Care

  
	
  ABC

  	
   

  	
  AmerisourceBergen
  Corp.

  	
   

  	
  Health
  Care

  
	
  AMGN

  	
   

  	
  Amgen

  	
   

  	
  Health
  Care

  
	
  ABI

  	
   

  	
  Applera
  Corp-Applied Biosystems Group

  	
   

  	
  Health
  Care

  
	
  BCR

  	
   

  	
  Bard
  (C.R.) Inc.

  	
   

  	
  Health
  Care

  
	
  BRL

  	
   

  	
  Barr
  Pharmaceuticals Inc.

  	
   

  	
  Health
  Care

  
	
  BAX

  	
   

  	
  Baxter
  International Inc.

  	
   

  	
  Health
  Care

  
	
  BDX

  	
   

  	
  Becton
  Dickinson

  	
   

  	
  Health
  Care

  
	
  BIIB

  	
   

  	
  BIOGEN
  IDEC Inc.

  	
   

  	
  Health
  Care

  
	
  BSX

  	
   

  	
  Boston
  Scientific

  	
   

  	
  Health
  Care

  
	
  BMY

  	
   

  	
  Bristol-Myers
  Squibb

  	
   

  	
  Health
  Care

  
	
  CAH

  	
   

  	
  Cardinal
  Health Inc.

  	
   

  	
  Health
  Care

  
	
  CELG

  	
   

  	
  Celgene
  Corp.

  	
   

  	
  Health
  Care

  
	
  COV

  	
   

  	
  Covidien
  Ltd.

  	
   

  	
  Health
  Care

  
	
  ESRX

  	
   

  	
  Express
  Scripts

  	
   

  	
  Health
  Care

  
	
  FRX

  	
   

  	
  Forest
  Laboratories

  	
   

  	
  Health
  Care

  
	
  GENZ

  	
   

  	
  Genzyme
  Corp.

  	
   

  	
  Health
  Care

  
	
  GILD

  	
   

  	
  Gilead
  Sciences

  	
   

  	
  Health
  Care

  
	
  HSP

  	
   

  	
  Hospira
  Inc.

  	
   

  	
  Health
  Care

  
	
  RX

  	
   

  	
  IMS
  Health Inc.

  	
   

  	
  Health
  Care

  
	
  JNJ

  	
   

  	
  Johnson &
  Johnson

  	
   

  	
  Health
  Care

  
	
  KG

  	
   

  	
  King
  Pharmaceuticals

  	
   

  	
  Health
  Care

  
	
  LH

  	
   

  	
  Laboratory
  Corp. of America Holding

  	
   

  	
  Health
  Care

  
	
  LLY

  	
   

  	
  Lilly
  (Eli) & Co.

  	
   

  	
  Health
  Care

  
	
  MCK

  	
   

  	
  McKesson
  Corp. (New)

  	
   

  	
  Health
  Care

  
	
  MHS

  	
   

  	
  Medco
  Health Solutions Inc.

  	
   

  	
  Health
  Care

  
	
  MDT

  	
   

  	
  Medtronic
  Inc.

  	
   

  	
  Health
  Care

  
	
  MRK

  	
   

  	
  Merck &
  Co.

  	
   

  	
  Health
  Care

  
	
  MIL

  	
   

  	
  Millipore
  Corp.

  	
   

  	
  Health
  Care

  
	
  MYL

  	
   

  	
  Mylan
  Inc.

  	
   

  	
  Health
  Care

  
	
  PDCO

  	
   

  	
  Patterson
  Cos. Inc.

  	
   

  	
  Health
  Care

  
	
  PKI

  	
   

  	
  PerkinElmer

  	
   

  	
  Health
  Care

  
	
  PFE

  	
   

  	
  Pfizer
  Inc.

  	
   

  	
  Health
  Care

  
	
  DGX

  	
   

  	
  Quest
  Diagnostics

  	
   

  	
  Health
  Care

  
	
  SGP

  	
   

  	
  Schering-Plough

  	
   

  	
  Health
  Care

  
	
  STJ

  	
   

  	
  St Jude
  Medical

  	
   

  	
  Health
  Care

  
	
  SYK

  	
   

  	
  Stryker
  Corp.

  	
   

  	
  Health
  Care

  
	
  THC

  	
   

  	
  Tenet
  Healthcare Corp.

  	
   

  	
  Health
  Care

  
	
  TMO

  	
   

  	
  Thermo
  Fisher Scientific

  	
   

  	
  Health
  Care

  
	
  VAR

  	
   

  	
  Varian
  Medical Systems

  	
   

  	
  Health
  Care

  
	
  WAT

  	
   

  	
  Waters
  Corporation

  	
   

  	
  Health
  Care

  
	
  WPI

  	
   

  	
  Watson
  Pharmaceuticals

  	
   

  	
  Health
  Care

  
	
  WYE

  	
   

  	
  Wyeth

  	
   

  	
  Health
  Care

  
	
  ZMH

  	
   

  	
  Zimmer
  Holdings

  	
   

  	
  Health
  Care

  

 

 

HOSPIRA
2004 LONG-TERM STOCK INCENTIVE PLAN

 

NOTICE
OF DEFERRAL ELECTION FORM

 

Subject to the provisions
of the Hospira 2004 Long-Term Stock Incentive Plan (the “Plan”), the Notice of
Grant of Award and Award Agreement (“Notice”) and the Restricted Stock Unit
Award Agreement (“Agreement”),  I hereby
elect to defer the receipt of the Earned Units, that would otherwise be issued
as specified in the Agreement,  in
accordance with the election below (“Election”). All capitalized terms are as
defined herein or as defined in the Plan, the Notice or the Agreement.

 

I.              DISTRIBUTION COMMENCEMENT DATE

 

                I hereby acknowledge and agree that the distribution
of my Earned Units shall begin after the end of the performance period
identified in the Agreement (“Performance Period”) but no later than 90 days
following the end of such Performance Period (“Distribution Commencement Date”).

 

II.                                     EARNED UNITS DEFERRAL

 

                Pursuant to Section 9 of the Agreement, I hereby
elect to defer the receipt of
          % of the Earned
Units (“Deferred Units”).

 

III.           DISTRIBUTION METHOD

 

                The Deferred Units shall be distributed in accordance
with the deferred distribution date (“Deferred Distribution Date”) as follows:

 

                                                                                                (   )          On
the January 1 that next follows the date that is
                
(not to exceed 10 years) year(s) after the Distribution Commencement Date.

 

                                                                                                (  
)          In annual installments
for [          ] year(s) (not
to exceed 10 years) beginning on the Distribution Commencement Date and each
anniversary thereof.

 

Notwithstanding the
foregoing, I understand that, distribution of the Earned Units in connection
with my death, Disability, Retirement or upon a Change in Control during the
Performance Period shall be made in accordance with the applicable provisions
of the Agreement.

 

ALL DISTRIBUTIONS WILL BE IN THE FORM OF
COMPANY STOCK
(any fractional shares and Dividend Equivalents, if any, will be paid in cash).

 

IV.           EFFECTIVE DATE AND DEFERRAL CHANGES

 

This Election shall first become effective as
of the date submitted to the Company and shall remain in effect for all
subsequent years until modified or revoked by filing a new Election form.

 

I understand that the deferral specified above may be changed only by
an election completed and filed with the secretary of the Company at least 12
months prior to my Distribution Commencement Date, which will delay
commencement of my distribution by 5 years. 
Any change to my distribution method will be void if my Distribution
Commencement Date actually occurs within 12 months after the date my change is
filed with the Company.

 

 

	
  Name:

  	
   

  	
   

  
	
   

  	
  (Please Print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:Exhibit 10.1

 

FIRST AMENDMENT TO THE SEPARATION AGREEMENT

 

This First Amendment (this “Amendment”), dated as of
May 5, 2008, between Travelport Limited (“Travelport”) and Orbitz
Worldwide, Inc. (“OWW” and together with Travelport, the “Parties”) is
entered into to amend the Separation Agreement, dated as of July 25, 2007,
between the Parties (the “Separation Agreement”). Capitalized terms used herein
shall have the respective meanings ascribed thereto in the Separation Agreement
unless herein defined.

 

WHEREAS, Section 10.9 of the Separation
Agreement provides that the Separation Agreement may be amended, modified or
supplemented by written agreement of the Parties; and

 

WHEREAS, each of Travelport and OWW has determined
that it is in its best interests to authorize and approve the agreements set
forth herein.

 

NOW, THEREFORE, in consideration of the premises and
other good and valuable consideration, the receipt and sufficiency of which
hereby are acknowledged, it is mutually agreed as follows:

 

ARTICLE I

AMENDMENTS

 

Section 1.1             Section 1.1 of the Separation
Agreement is hereby amended to

 

(a)        Insert the
following definition:

 

“Parent of Travelport” means any Person that,
as of the time in question, directly or indirectly, (i) owns fifty percent
(50%) or more of the voting or capital stock of Travelport or (ii) owns
fifty percent (50%) or more of the economic interest in Travelport or has the
power to elect or direct the election of fifty percent (50%) or more of the
members of the governing body of Travelport or that otherwise has control over
Travelport.

 

(b)        Amend the
following definitions to read in their entirety as follows:

 

“Travelport Affiliated Group” means,
collectively, (i) Travelport, (ii) any direct or indirect Parent of
Travelport now or hereafter existing and (iii) all direct and indirect
Subsidiaries of Persons referred to in the foregoing clauses (i) and (ii),
other than members of the OWW Affiliated Group, now or hereafter existing.

 

“Trigger Date” means the first date on which
the Travelport Affiliated Group ceases to beneficially own Voting Stock
entitled to fifty percent (50%) or more of the votes entitled to be cast by the
then outstanding Voting Stock.

 

Section 1.2         Article I of the Separation
Agreement is hereby amended to insert the section set forth below:

 

Section 1.2         Calculation of Aggregate Voting
Stock.  Notwithstanding any provision
of this Agreement to the contrary, during the period beginning January 1,
2008

 

 

through and including March 31,
2009, the Travelport Affiliated Group shall be deemed for all purposes under
this Agreement, including, but not limited to, the definition of Trigger Date
(but not for any other purpose) to beneficially own, in the aggregate, Voting
Stock entitled to fifty one percent (51%) of the votes entitled to be cast by
the then outstanding Voting Stock.

 

Section 1.3             The initial paragraph of Section 2.10(d) of
the Separation Agreement is hereby amended by striking the phrase “or members
of the Travelport Affiliated Group no longer owning in the aggregate at least
50.1% of the equity of OWW on a fully-diluted basis, then:” and replacing it
with “or the Travelport Affiliated Group no longer beneficially owns, in the
aggregate, Voting Stock entitled to fifty percent (50%) or more of the votes
entitled to be cast by the then outstanding Voting Stock, then:”.

 

Section 1.4           Section 2.10(d)(iv)(4) of
the Separation Agreement is hereby amended to:

 

(a)        Strike the
phrase “fees on any letters of credit outstanding equal to the Applicable Rate
(as such term is defined in the Travelport Credit Facility) multiplied
by the daily maximum amount then available to be drawn under such outstanding
letters of credit in accordance with Section 2.03(g) of the
Travelport Credit Facility” and
replace it with “fees on any letters of credit (i) issued, renewed or
extended (including extensions of the term of any letter of credit) equal to
the applicable market rate obtained by Travelport from the administrative agent
under the Travelport Credit Facility (the applicable market rate having been
measured on the most recent first Business Day of January, April, July and
October preceding such issuance, renewal or extension and thereafter
re-measured on the first Business Day of each January April, July and
October during the term of such letter of credit) and (ii) outstanding
as of March 31, 2008 equal to the applicable rate with respect to Term
Loans that are Eurocurrency Rate Loans (as each such term is defined in the
Credit Agreement, dated as of July 25, 2007, among Orbitz Worldwide, Inc.,
UBS AG, Samford Branch, UBS Loan Finance LLC and the other lenders party
thereto)”.

 

(b)        Insert, after
“December” and before “; and”, the phrase “; provided however, at no time will
the fees paid by OWW for letters of credit under this clause be less than the
cost to Travelport of providing such letters of credit”.

 

Section 1.5           Section 2.10(d)(iv)(7) of
the Separation Agreement is hereby amended to strike the phrase “would exceed
the capacity available for letters of credit under the Travelport Credit Facility”
and replace it with “would exceed US$75,000,000”.

 

Section 1.6           Section 2.10 of the Separation
Agreement is hereby amended to add the following clauses to the end of
subsection 2.10(d):

 

“(e)      For the avoidance of doubt, as used in Section 2.10(d), (i) the
term “issued” (including terms with correlative meaning) shall include new
issuances, renewals and extensions (including extensions of term) and (ii) the
terms “letter of credit” and “letters of credit” shall mean a letter of credit
or letters of credit, as the case may be, denominated in U.S. dollars.

 

2

 

(f)            OWW agrees to
cooperate in good faith with Travelport to replace, as soon as practicable, any
letters of credit relating to the OWW Affiliated Group maintained by Travelport
under the Travelport Credit Facility that are not denominated in U.S. dollars
with either (i) borrowings under any credit facility maintained by OWW or (ii) letters
of credit denominated in U.S. dollars issued under the Travelport Credit
Facility pursuant to Section 2.10(d); provided, however,
that for any letters of credit issued under this Section 2.10(f) Travelport
hereby (x) waives the fee set forth in Section 2.10(d)(iv)(1)(b) 
and (y) agrees that the fee set forth in Section 2.10(d)(iv)(4) shall
be fixed at the rate in effect on the date hereof.”

 

Section 1.7             Section 8.1 of the Separation
Agreement is hereby amended by inserting after the phrase “any employees
specified by the other Party through March 31, 2008”, “and, with respect
to employees listed on Schedule 8.1 hereto through December 31, 2008”.  Schedule 8.1 is attached hereto.

 

ARTICLE II

MISCELLANEOUS

 

Section 2.1             This Amendment replaces and
supersedes the letter agreement between the Parties dated October 30, 3007.  This Amendment shall become effective as of
the date first written above, except for the amendments set forth in Sections
1.4(a),1.6 and 1.7 hereof, which shall be effective as of April 1, 2008.

 

Section 2.2             This Amendment shall be binding
upon and inure to the benefit of and be enforceable by the parties hereto or
their successors in interest, except as expressly provided in the Separation
Agreement.

 

Section 2.3             Nothing in this Amendment shall
convey any rights upon any Person or entity which is not a Party or a permitted
assignee of a Party to the Separation Agreement.

 

Section 2.4             This Amendment may be executed in
counterparts, each of which shall be deemed to be an original but all of which
together shall constituted one and the same agreement.

 

Section 2.5             This Amendment shall be construed
and enforced in accordance with, and the rights and duties of the Parties shall
be governed by, the laws of the State of New York without regard to the
principles of conflicts of law other than Section 5-1401 of the General
Obligations Law of the State of New York.

 

Section 2.6             Each Party to this Amendment agrees
that, other than as expressly set out in this Amendment, nothing in this
Amendment is intended to alter the rights, duties, obligations of the Parties
under the Separation Agreement which shall remain in full force and effect as
amended hereby.

 

3

 

IN
WITNESS HEREOF, the parties have caused this First Amendment to the Separation
Agreement to be executed and delivered as of the date first above written.

 

 

	
   

  	
  TRAVELPORT
  LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Eric J. Bock

  
	
   

  	
  Name:

  	
  Eric
  J. Bock

  
	
   

  	
  Title:

  	
  Executive
  Vice President and

  
	
   

  	
   

  	
  General
  Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ORBITZ
  WORLDWIDE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  James P. Shaughnessy

  
	
   

  	
  Name:

  	
  James
  P. Shaughnessy

  
	
   

  	
  Title:

  	
  Senior
  Vice President,

  
	
   

  	
   

  	
  General
  Counsel

  

 

4

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