Document:

Exhibit 4.1

 

€413,700,000 ADDITIONAL FACILITY AA ACCESSION AGREEMENT

 

To:                              The Bank of Nova Scotia as Facility Agent and Security Agent

 

From:                  The persons listed in Schedule 1 to this Additional Facility AA Accession Agreement (the Additional Facility AA Lenders)

 

Date:  26 July 2011

 

UPC Broadband Holding B.V. (formerly known as UPC Distribution Holding B.V) - €1,072,000,000 Term Credit Agreement dated 16 January 2004 as amended from time to time (the Credit Agreement)

 

1.                                       In this Additional Facility AA Accession Agreement:

 

Facility AA means the €413,700,000 redrawable term loan facility made available under this Agreement.

 

Facility AA Advance means a euro denominated advance made to UPC Financing by the Additional Facility AA Lenders under Facility AA.

 

Facility AA Commitment means, in relation to an Additional Facility AA Lender, the amount in euros set opposite its name under the heading “Facility AA Commitment” in Schedule 1 to the counterpart of this Agreement executed by that Additional Facility AA Lender, to the extent not cancelled, transferred, or reduced under the Credit Agreement.

 

Facility L means the €830,000,000 redrawable term loan facility made available under the Additional Facility Accession Agreement dated 3 July 2006.

 

Facility L Interest Period means the Interest Period currently selected (as at the date of this Agreement) in respect of the outstanding €830,000,000 Advance under Facility L.

 

Facility Q means the €422,000,000 redrawable term loan facility made available under the Additional Facility Accession Agreements dated 25 March 2009, 27 April 2009, 8 September 2009, 30 October 2009 and 18 November 2009.

 

Facility Q Interest Period means the Interest Period currently selected (as at the date of this Agreement) in respect of the outstanding €220,300,000 Advance under Facility Q.

 

2.                                       Unless otherwise defined in this Additional Facility AA Accession Agreement, terms defined in the Credit Agreement shall have the same meaning in this Additional Facility AA Accession Agreement and a reference to a Clause is a reference to a Clause of the Credit Agreement.  The principles of construction set out in Clause 1.2 (Construction) of the Credit Agreement apply to this Agreement as though they were set out in full in this Additional Facility AA Accession Agreement.

 

3.                                       We refer to Clause 2.2 (Additional Facilities) of the Credit Agreement.

 

4.                                       This Additional Facility AA Accession Agreement will take effect on the date on which the Facility Agent notifies UPC Broadband and the Additional Facility AA Lenders that it has received the documents and evidence set out in Schedule 2 to this Additional Facility AA Accession Agreement, in each case in form and substance satisfactory to it or, as the case may

 

 

be, the requirement to provide any of such documents or evidence has been waived by the Facility Agent on behalf of the Additional Facility AA Lenders (the Effective Date).

 

5.                                       We, the Additional Facility AA Lenders, agree:

 

(a)           to become party to and to be bound by the terms of the Credit Agreement as Lenders in accordance with Clause 2.2 (Additional Facilities) of the Credit Agreement; and

 

(b)           to become party to the Security Deed as Lenders and to observe, perform and be bound by the terms and provisions of the Security Deed in the capacity of Lenders in accordance with Clause 9.3 (Transfers by Lenders) of the Security Deed.

 

6.                                       The Additional Facility Commitment in relation to an Additional Facility AA Lender (for the purpose of the definition of Additional Facility Commitment in Clause 1.1 (Definitions) of the Credit Agreement) is its Facility AA Commitment.

 

7.                                       Any interest due in relation to Facility AA will be payable on the last day of each Interest Period in accordance with Clause 8 (Interest) of the Credit Agreement.

 

8.                                       The Additional Facility Availability Period for Facility AA shall be the period from and including the Effective Date up to and including the date falling one month before the Final Maturity Date in respect of Facility AA.

 

9.                                       Facility AA shall comprise a committed term loan facility which shall (subject to paragraph 10 below) be capable of being reborrowed in relation to any sums that are prepaid in accordance with Clause 7.10(d) (Miscellaneous provisions) of the Credit Agreement.

 

10.                                 UPC Financing shall not deliver a Request in relation to Facility AA if as a result of the proposed Request more than 10 Advances under Facility AA would be outstanding.

 

11.                                 The Facility AA Advances will be used for general corporate purposes and working capital purposes, including the repayment or prepayment of existing indebtedness.

 

12.                                 (a)           The first Interest Period to apply to the first Facility AA Advance will be a period equal to the period running from the Effective Date up to and including the last day of the Facility L Interest Period and Facility Q Interest Period (being, for the avoidance of doubt, the same date).

 

(b)           In respect of the first Interest Period only, EURIBOR shall mean the EURIBOR rate as determined in respect of the Facility L Interest Period and Facility Q Interest Period (being, for the avoidance of doubt, the same rate).

 

13.                                 The Final Maturity Date in respect of this Facility AA will be 31 July 2016.

 

14.                                 The outstanding Facility AA Advances will be repaid in full on the Final Maturity Date.

 

15.                                 The Margin in relation to Facility AA is 3.25 per cent. per annum.

 

16.                                 The Borrower in relation to Facility AA is UPC Financing.

 

17.                                 The Borrower shall pay to the Facility Agent for distribution to each Additional Facility AA Lender in accordance with Clause 20.1(b) (Commitment fee) of the Credit Agreement a commitment fee in an amount equal to 1.30 per cent. per annum of the undrawn uncancelled portion of the Total Additional Facility AA Commitment.  Such commitment fee shall be 

 

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calculated and shall accrue on a daily basis and shall be payable on the Effective Date and thereafter quarterly in arrears.

 

18.                                 (a)           Provided that any upsizing of Facility AA permitted under this paragraph will not breach any term of the Credit Agreement, Facility AA may be upsized by any amount, by the signing of one or more further Additional Facility AA Accession Agreements, that specify (along with the other terms specified therein) UPC Financing as the sole Borrower and which specify Additional Facility AA Commitments denominated in euros, to be drawn in euros, with the same Final Maturity Date, Commitment Fee and Margin as specified in this Additional Facility AA Accession Agreement.

 

(b)           For the purposes of this paragraph 18 (unless otherwise specified), references to Additional Facility AA Lenders and Facility AA Advances shall include Lenders and Advances made under any such further and previous Additional Facility AA Accession Agreement.

 

(c)           Where any Facility AA Advance has not already been consolidated with any other Facility AA Advance, on the last day of any Interest Period for such Facility AA Advance, that Facility AA Advance will be consolidated with any other Facility AA Advance which has an Interest Period ending on the same day as that Facility AA Advance, and all such Facility AA Advances will then be treated as one Advance.

 

19.                                 Each of UPC Broadband and UPC Financing confirms, on behalf of themselves and each other Obligor that the representations and warranties set out in Clause 15 (Representations and Warranties) of the Credit Agreement (with the exception of Clauses 15.6(a) (Consents), 15.10 (Financial condition), 15.12 (Security Interests), 15.13(b) (Litigation and insolvency proceedings), 15.14 (Business Plan), 15.15 (Tax liabilities), 15.16 (Ownership of assets), 15.18 (Works Council), 15.19 (Borrower Group Structure), 15.20 (ERISA), 15.24 (UPC Financing) and 15.25 (Dutch Banking Act)) are true and correct as if made at the Effective Date with reference to the facts and circumstances then existing, and as if each reference to the Finance Documents includes a reference to this Additional Facility AA Accession Agreement.

 

20.                                 UPC Broadband further represents and warrants on the Effective Date that the execution and delivery by it of this Additional Facility AA Accession Agreement and the performance of the transactions contemplated by this Additional Facility AA Accession Agreement will not violate any agreement or instrument to which UPC Holding is a party or binding upon UPC Holding or any member of the Borrower Group or any assets of UPC Holding or any member of the Borrower Group’s assets, where such violation would or is reasonably likely to have a Material Adverse Effect.

 

21.                                 Each Additional Facility AA Lender confirms to each Finance Party that:

 

(a)                                  it has made its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in the Credit Agreement and has not relied on any information provided to it by a Finance Party in connection with any Finance Document; and

 

(b)                                 it will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities while any amount is or may be outstanding under the Credit Agreement or any Additional Facility Commitment is in force.

 

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22.           Each of the Additional Facility AA Lenders agrees that without prejudice to Clause 26.3 (Procedure for novations) of the Credit Agreement, each New Lender (as defined in the Novation Certificate referred to below) shall become, by the execution by the Facility Agent of a Novation Certificate substantially in the form of Schedule 3 to this Additional Facility AA Accession Agreement, bound by the terms of this Additional Facility AA Accession Agreement as if it were an original party hereto as an Additional Facility AA Lender and shall acquire the same rights and assume the same obligations towards the other parties to this Additional Facility AA Accession Agreement as would have been acquired and assumed had the New Lender been an original party to this Additional Facility AA Accession Agreement as an Additional Facility AA Lender.

 

23.           The prior consent of UPC Broadband is required for any such assignment, transfer or novation (unless to an Additional Facility AA Lender or an Affiliate of an Additional Facility AA Lender), provided that:

 

(a)                                  UPC Broadband’s consent must not be unreasonably withheld or delayed;

 

(b)                                 the consent of UPC Broadband to an assignment, transfer or novation must not be withheld solely because the assignment, novation or transfer may result in an increase to the Mandatory Cost or the Sterling Mandatory Cost;

 

(c)                                  the prior consent of UPC Broadband is not required when an Event of Default is outstanding;

 

(d)                                 nothing in this paragraph 23 restricts the ability of any Additional Facility AA Lender to enter into any sub-participation or other arrangement with any third party relating to the Finance Documents which does not transfer to that third party any obligation and/or legal or equitable interest in any of the rights arising under the Credit Agreement.

 

24.           The Facility Office and address for notices of each Additional Facility AA Lender for the purposes of Clause 32.2 (Addresses for notices) of the Credit Agreement will be that notified by each Additional Facility AA Lender to the Facility Agent.

 

25.           This Additional Facility AA Accession Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

26.           This Additional Facility AA Accession Agreement may be executed in any number of counterparts, and by each party on separate counterparts.  Each counterpart is an original, but all counterparts shall together constitute one and the same instrument.  Delivery of an executed counterpart signature page of this Additional Facility AA Accession Agreement by e-mail (PDF) or telecopy shall be as effective as delivery of a manually executed counterpart of this Additional Facility AA Accession Agreement.

 

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SCHEDULE 1

 

ADDITIONAL FACILITY AA LENDERS AND COMMITMENTS

 

	
Additional   Facility AA Lender
    	
 
    	
Facility   AA Commitment
    	
 
    
	
 
    	
 
    	
(€)
    	
 
    
	
UPC Broadband Operations B.V.
    	
 
    	
413,700,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
413,700,000
    	
 
    

 

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SCHEDULE 2

 

CONDITIONS PRECEDENT DOCUMENTS

 

1.                                      Constitutional Documents

 

(a)                                  A copy of the constitutional documents of each Obligor (other than UPC Financing) and the partnership agreement of UPC Financing or, if the Facility Agent already has a copy, a certificate of an authorised signatory of the relevant Obligor confirming that the copy in the Facility Agent’s possession is still correct, complete and in full force and effect as at a date no earlier than the date of this Additional Facility AA Accession Agreement.

 

(b)                                 An extract of the registration of each Obligor established in the Netherlands in the trade register of the Dutch Chamber of Commerce.

 

2.                                      Authorisations

 

(a)                                  A copy of a resolution of the board of managing and, to the extent applicable, board of supervisory directors (or equivalent) and, to the extent that a shareholders’ resolution is required, a copy of the shareholders’ resolution of each Obligor:

 

(i)            approving the terms of and the transactions contemplated by this Additional Facility AA Accession Agreement and (in the case of each of UPC Broadband and UPC Financing) resolving that it execute the same (and, in the case of the Guarantors and the Charging Entities (as defined in the Security Deed) resolving that it execute the confirmation described at paragraph 4(a) below; and

 

(ii)           (in the case of UPC Broadband and UPC Financing) authorising the issuance of a power of attorney to a specified person or persons to execute this Additional Facility AA Accession Agreement on its behalf and (in the case of the Guarantors and the Charging Entities (as defined in the Security Deed)) authorising the issuance of a power of attorney to a specified person or persons to execute the confirmation described in paragraph 4(a) below.

 

(b)                                 A specimen of the signature of each person authorised pursuant to its constitutional documents or to the power of attorney referred to in paragraph (a) above to sign this Additional Facility AA Accession Agreement or the confirmation described in paragraph 4(a) below (as appropriate).

 

(c)                                  A certificate of an authorised signatory of UPC Broadband, each Guarantor and each Charging Entity certifying that each copy document specified in this Schedule and supplied by UPC Broadband, each Guarantor and each Charging Entity is correct, complete and in full force and effect as at a date no earlier than the date of this Additional Facility AA Accession Agreement.

 

(d)                                 A copy of any other authorisation or other document, opinion or assurance which the Facility Agent has notified UPC Broadband is necessary in connection with the entry into and performance of, and the transactions contemplated by, this Additional Facility AA Accession Agreement or for the validity and enforceability of this Additional Facility AA Accession Agreement.

 

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3.                                      Legal opinions

 

(a)                                  A legal opinion of Allen & Overy LLP, English legal advisers to the Facility Agent, addressed to the Finance Parties.

 

(b)                                 A legal opinion of Allen & Overy LLP, Dutch legal advisers to the Facility Agent, addressed to the Finance Parties.

 

(c)                                  A legal opinion of Allen & Overy LLP, New York legal advisers to the Facility Agent, addressed to the Finance Parties.

 

4.                                      Other documents

 

Confirmation (in writing) from (i) each of the Guarantors that its obligations under Clause 14 (Guarantee) of the Credit Agreement and (ii) each of the Charging Entities (as defined in the Security Deed) that the Security Interests granted to the Beneficiaries pursuant to the Security Documents and its obligations under the Finance Documents, shall continue unaffected and that such obligations extend to the Total Commitments as increased by the addition of Facility AA and that such obligations shall be owed to each Finance Party including the Additional Facility AA Lenders.

 

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SCHEDULE 3

 

NOVATION CERTIFICATE (CASHLESS)

 

To:          The Bank of Nova Scotia as Facility Agent and UPC Financing as Borrower

 

From:      UPC Broadband Operations B.V. and [the EXISTING [·] LENDER / NEW AA LENDER]

 

Date:        2011

 

UPC Broadband Holding B.V. - e1,072,000,000 Term Credit Agreement dated 16 January 2004 (the Credit Agreement)

 

We refer to:

 

(a)                                 Clause 26.3 (Procedure for novations) of the Credit Agreement;

 

(b)                                Clause 9.3 (Transfers by the Lenders) of the Security Deed;

 

(c)                                 the Additional Facility [·] Accession Agreement; and

 

(d)                                the €[·] Additional Facility AA Accession Agreement.

 

Terms defined in the Credit Agreement or, if not defined in the Credit Agreement, the Additional Facility [·] Accession Agreements, have the same meaning in this Novation Certificate.

 

1.                                       [                 ] (the Existing [·] Lender) agrees to novate and UPC Broadband Operations B.V. (the New [·] Lender) agrees to accept novation on the Effective Date, of all the Existing [·] Lender’s rights and obligations referred to in the Schedule in accordance with Clause 26.3 (Procedure for novations) of the Credit Agreement and clause 9.3 (Transfers by the Lenders) of the Security Deed.

 

2.                                       UPC Broadband Operations B.V. (the Existing AA Lender) agrees to novate and [                  ] (the New AA Lender) agrees to accept the novation on the Effective Date of all the Existing AA Lender’s rights and obligations referred to in the Schedule in accordance with Clause 26.3 (Procedure for novations) of the Credit Agreement and clause 9.3 (Transfers by the Lenders) of the Security Deed.

 

3.                                       The New [·] Lender confirms that it is bound by the terms of the Additional Facility [·] Accession Agreement as if it were an original party thereto as an Additional Facility [·] Lender and shall acquire the same rights and assume the same obligations towards the other parties to the Additional Facility [·] Accession Agreement as would have been acquired and assumed had the New [·] Lender been an original party to the Additional Facility [·] Accession Agreement as an Additional Facility [·] Lender.

 

4.                                       The New AA Lender confirms that it is bound by the terms of the Additional Facility AA Accession Agreement as if it were an original party thereto as an Additional Facility AA Lender and shall acquire the same rights and assume the same obligations towards the other parties to the Additional Facility AA Accession Agreement as would have been acquired and

 

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assumed had the New AA Lender been an original party to the Additional Facility AA Accession Agreement as an Additional Facility AA Lender.

 

5.                                       This certificate shall take effect on the date of this certificate.

 

6.                                       For the purposes of this certificate, “Effective Date” has the same meaning given to such term in the Additional Facility AA Accession Agreement.

 

7.                                       Each party to this document agrees, the Facility Agent agrees on behalf of each Finance Party, and UPC Broadband Holding B.V. agrees on behalf of each Obligor, that this document is a Novation Certificate notwithstanding that its form is different to that required by the Credit Agreement.

 

8.                                       This Novation Certificate is a Finance Document.

 

9.                                       This Novation Certificate may be executed in any number of counterparts, and by each party on separate counterparts.  Each counterpart is an original, but all counterparts shall together constitute one and the same instrument.  Delivery of an executed counterpart signature page of this Novation Certificate by e-mail (PDF) or telecopy shall be as effective as delivery of a manually executed counterpart of this Novation Certificate.

 

10.                                 This Novation Certificate and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

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THE SCHEDULE

 

Rights and obligations to be novated:

 

1.                                      EXISTING [·] LENDER

 

Existing [·] Commitment: €[        ]

 

Assignee: New [·] Lender

 

2.                                      EXISTING AA LENDER

 

Existing AA Commitment: €[        ]

 

Assignee: New AA Lender

 

[THE EXISTING [·] LENDER], as the Existing [·] Lender

 

 

By:

Name:

Title:

 

UPC BROADBAND OPERATIONS B.V., as the New [·] Lender

 

 

By:

Name:

Title:

 

UPC BROADBAND OPERATIONS B.V., as the Existing AA Lender

 

 

By:

Name:

Title:

 

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[THE NEW AA LENDER], as the New AA Lender

 

 

By:

Name:

Title:

 

 

UPC BROADBAND HOLDING B.V., as Obligors agent

 

 

By:

Name:

Title:

 

 

THE BANK OF NOVA SCOTIA, as Facility Agent

 

 

By:

Name:

Title:

 

The Facility Agent confirms that the Effective Date is the date on which it countersigns this Novation Certificate.

 

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SIGNATORIES

 

THE BANK OF NOVA SCOTIA as Facility Agent

 

By:          Authorized Signatory

 

 

THE BANK OF NOVA SCOTIA as Security Agent

 

By:          Authorized Signatory

 

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UPC BROADBAND HOLDING B.V.

 

By:          Authorized Signatory

 

By:          Authorized Signatory

 

 

UPC FINANCING PARTNERSHIP

 

By:          Authorized Signatory

 

By:          Authorized Signatory

 

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ADDITIONAL FACILITY AA LENDERS

 

 

UPC BROADBAND OPERATIONS B.V.

 

By: Authorized Signatory

 

14Exhibit 10.1

 

Hospira Corporate Officer Severance Plan

(Effective September 1, 2007 and as amended through the Third Amendment effective May 10, 2011)

 

1.                                       Purpose.  The Hospira Corporate Officer Severance Plan (“Plan”) was established to provide Severance Pay and other benefits to terminated Corporate Officers of Hospira, Inc. (the “Company”) who satisfy the terms of the Plan.  Severance Pay and benefits under the Plan shall be in lieu of any benefits available under the Hospira Transitional Pay Plan or any other severance plan or policy maintained by the Company or any of its subsidiaries and affiliates (each an “Affiliate”); and benefits will not be payable under the Plan if the relevant termination of employment results in the employee being eligible for equivalent (or greater) severance pay and benefits under an employment agreement between the Company or an Affiliate and the employee, or under the Hospira, Inc. Change in Control Severance Pay Plan or any Change in Control agreement between the Company or any Affiliate and the employee.

 

2.                                       Administration.  Except as specifically stated herein, the Plan is administered by the Company’s Senior Vice President, Organizational Transformation and People Development or, if there is no person by such title, such other person acting as chief human resources officer of Hospira, Inc. (“Administrator”).  The Administrator has the complete discretion and authority with respect to the Plan and its application.  The Administrator reserves the right to interpret the Plan, prescribe, amend and rescind rules and regulations relating to it, determine the terms and provisions of Severance Pay and benefits and make all other determinations it deems necessary or advisable for the administration of the Plan.  The determination of the Administrator in all matters regarding the Plan shall be conclusive and binding on all persons.  The Administrator may delegate any of his or her duties under the Plan to one or more other persons.

 

3.                                       Scope.  The Plan will apply to all Corporate Officers (“Participants”).  For purposes of the Plan, the term “Corporate Officer” means an individual elected a corporate officer of the Company by its Board of Directors or designated as a Plan participant by the Compensation Committee of the Board of Directors of the Company (“Committee”) and listed on the attached Exhibit A, but shall not include assistant officers.

 

4.                                       Eligibility for Severance Pay.  A Participant becomes entitled to receive severance pay (“Severance Pay”) only if he or she is terminated by the Company or an Affiliate for any of the following reasons, and the conditions described in Section 5 below are met:

 

(a)                                  The Participant’s position is eliminated due to a reduction in force or other restructuring.

 

(b)                                 For the Company’s Chief Executive Officer (“CEO”), the Participant’s employment is terminated for other than “Cause,” defined as the willful engaging by the Participant in illegal conduct or gross misconduct which is demonstrably and materially injurious to the Company.  For purposes of this Plan, no act, or

 

 

failure to act, on the Participant’s part shall be deemed “willful” unless done, or omitted to be done, by the Participant not in good faith and without reasonable belief that the Participant’s action or omission was in the best interest of the Company.

 

(c)                                  For all other Participants other than the CEO, the Participant’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 Administrator and is otherwise considered to be involuntary.

 

Section 4(b) shall apply only to a Participant who is the CEO.  A Participant’s eligibility for Severance Pay shall not be affected by the Company’s decision to accept his or her resignation or retirement following the occurrence of any of the conditions described in Sections 4(a),  4(b), and 4(c). The decision as to whether a Participant is eligible for Severance Pay and benefits under this Plan shall be made by the Administrator, not the Participant.  If the Participant disagrees, the Participant must follow the procedures set forth in Section 14.

 

5.                                       Conditions to Receipt of Severance Pay.

 

(a)                                  Severance Pay is not available to a Participant otherwise eligible for Severance Pay who transfers to another position with the Company or any Affiliate.

 

(b)                                 A Participant must sign an agreement in a form provided by the Administrator under which the Participant agrees to use all best efforts to protect the secrecy and confidentiality of information that is confidential and proprietary to Hospira or any of its Affiliates (“Confidential Information”) and under which the Participant agrees that, for a period of 2 years after his or her termination of employment the Participant will: (1) not engage, directly or indirectly, in any activity or employment, for the benefit of the Participant or others, in a manner that contributes to any research, discovery, development, manufacture, importation, marketing, promotion, sale or use of any competing Hospira product, process or service, which is related in any way to the Participant’s employment with the Company or any of its Affiliates; (2) not engage in any activity or employment in the performance of which any Confidential Information obtained, provided or otherwise acquired, directly or indirectly, during the term of employment with Hospira or any of its Affiliates is likely to be used or disclosed, notwithstanding the Participant’s undertaking to the contrary; (3) not solicit the customers of the Company or any of its Affiliates or entice any employee of the Company or any of its Affiliates to leave the employment of the Company or any of its Affiliates; and (4) inform the Company of other employment by contacting the Administrator within 5 days of accepting such other employment.

 

(c)                                  A Participant must satisfy any other condition specified in Section 5 and Section 6.  During the period in which a Participant is entitled to consider the execution of the waiver and release agreement described in Section 6, or during such other period as is otherwise agreed to by the Administrator and the Participant, he or

 

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she may be required to complete unfinished business projects and be available for discussions regarding matters relative to the Participant’s duties with the Company or any of its Affiliates.

 

(d)                                 A Participant must return all property and information of the Company or any of its Affiliates.

 

(e)                                  A Participant must agree to pay all outstanding amounts owed to the Company or any Affiliate and authorize the Company or Affiliate to withhold any outstanding amounts from his or her final paycheck and/or Severance Pay.

 

6.                                       Amount of Severance Pay.  The amount of Severance Pay to which a Participant is entitled under the Plan is the sum of:

 

(a)                                  2 years of the Participant’s base salary at the rate in effect on the date of termination, plus

 

(b)                                 for the year of termination: (1) if the Participant also participates in the Hospira Incentive Plan or a successor plan (“HIP”), the Participant’s pro rata annual incentive bonus award through the date of termination, with the determination of the amount of such award based on an assumption that the target level of performance has been achieved; or (2) if the Participant also participates in the Hospira, Inc. Performance Incentive Plan or a successor plan (“PIP”), the Participant’s pro rata annual incentive bonus award, if any, through the date of termination as determined under the PIP.

 

In addition to the pro-rata bonus provided under Section 6(b) above, if the Participant’s date of termination occurs after the end of a performance period applicable to an annual incentive bonus award in which the Participant participates, and prior to the payment of the award, if any, for the period, the Participant shall be entitled to a lump sum payment in cash with respect to such prior performance period, as determined under the terms of that incentive award arrangement.

 

A Participant who is receiving benefits under a short term disability plan maintained by the Company or any Affiliate will be entitled to Severance Pay at the end of the period of payment of short term disability if, and only if, (1) he or she is not then eligible for benefits under a long term disability plan maintained by the Company or an Affiliate, and (2) he or she is not offered employment with the Company or an Affiliate that, in the discretion of the Administrator, is comparable to that held by the Participant at the time the applicable period of short term disability commenced.  A Participant will not be entitled to Severance Pay at the end of the period of long term disability.

 

Except as provided in the last sentence of this paragraph, Severance Pay will be paid to a Participant in one lump sum cash payment.  Payment will be made as soon as practicable after the last to occur of (1) the date of the Participant’s termination of employment, (2)  the effective date of the Participant’s executed waiver and release agreement in the form provided by the Administrator (i) which releases the Company and its Affiliates, and their respective officers, directors and employees, from any and all actions, suits, proceedings,

 

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claims and demands relating to the Participant’s employment with the Company or any Affiliate and the termination thereof, (ii) which releases all rights and benefits required under any other severance policy or plan maintained by the Company or any Affiliate, and (iii) under which the Participant agrees to maintain and protect the reputation of the Company and its Affiliates and their businesses, products and personnel, and the Participant agrees further to not disparage the Company, any Affiliate,  or any person representing the Company or any Affiliate, or engage in any similar activities which reasonably could be anticipated to affect negatively the reputation of the Company and any Affiliate and their businesses, products and personnel, and relationships with current or prospective customers, suppliers and employees and (3) the satisfaction of the conditions described in Sections 5(b), (c),  (d) and (e).  In any event, the payment shall be made no later than 2 1⁄2 months after the end of the year in which the termination described in Section 4 occurs. Severance Pay shall be reduced by applicable amounts necessary to comply with federal, state and local income tax withholding requirements. Notwithstanding any provision contained herein, for a Participant who participates in the PIP, the payment described in Section 6(b)(2) shall be paid after the determination of such amount, but no later than 2 1⁄2 months after the end of the year in which the termination described in Section 4 occurs.  For all participants, the benefits described in this Plan shall be forfeited if the Participant fails to execute the agreement described in Section 5(b) and the waiver and release agreement described in this paragraph within 2 1⁄2 months after the end of the year in which the termination described in Section 4 occurs.

 

7.                                       Benefits.

 

(a)                                  Welfare Benefits.  A Participant entitled to Severance Pay shall receive, at the time of payment of Severance Pay, a lump sum payment equivalent to 130% of the cost of 72-weeks of COBRA (as defined in Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”), and Sections 601-609 of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or any successor sections) continuation coverage premiums in lieu of any continued medical, dental, vision, and other welfare benefits offered by the Company or any Affiliate.  Such period of COBRA continuation coverage shall be included as part of the period during which the Participant may elect continued group health coverage under COBRA.

 

(b)                                 Outplacement Services.  A Participant entitled to Severance Pay shall receive outplacement services, selected by the Company at its expense, for a period commencing on the date of termination of employment and continuing until the earlier to occur of the Participant accepting other employment or 12 months thereafter.

 

8.                                       Death of Participant.  No Severance Pay will be paid if a Participant dies before satisfying Section 4 and Section 5; provided, however, that if a Participant dies after becoming entitled to receive Severance Pay by satisfying Section 4 and Section 5 but prior to receiving Severance Pay pursuant to Section 4, payment of the Severance Pay determined under Section 4 will be made to the representative of his or her estate.  Notwithstanding any provision of this Plan to the contrary, the Administrator and the

 

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Participant’s estate may agree to alternative means for the satisfaction of the requirements in Sections 5 (b), (c), (d) and (e).

 

9.                                       Effective Date of Plan.  The Plan is effective as of September 1, 2007.

 

10.                                 Amendment or Termination.

 

(a)                                  Hospira reserves the right to amend or terminate the Plan at any time; provided, however, that no amendment or termination may adversely affect any Severance Pay and benefits of a Participant who has terminated employment and is entitled to Severance Pay and benefits by satisfying the requirements in Section 4 and Section 5.  All amendments and any termination of the Plan will be adopted by resolution of the Committee.

 

(b)                                 Severance Pay and benefits under the Plan are not intended to be a vested right.

 

11.                                 Code Section 409A.  Notwithstanding anything to the contrary in this Plan, the Committee may adopt such amendments to the Plan, or adopt policies or procedures, as may be necessary or appropriate to (a) exempt Severance Pay and benefits from Code Section 409A and/or to preserve the intended tax treatment thereof or (b) otherwise comply with the requirements of Code Section 409A and related regulations.

 

12.                                 Governing Law.  The terms of the Plan shall, to the extent not preempted by federal law, be governed by, and construed and enforced in accordance with, the laws of the State of Illinois, including all matters of construction, validity and performance.

 

13.                                 Miscellaneous Provisions.

 

(a)                                  Severance Pay and other benefits pursuant to the Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge prior to actual receipt by a Participant, and any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber or charge prior to such receipt shall be void and neither the Company nor any Affiliate shall be liable in any manner for, or subject to, the debts, contracts, liabilities, engagements or torts of any person entitled to any Severance Pay or other benefits under the Plan.

 

(b)                                 Nothing contained in the Plan shall confer upon any individual the right to be retained in the service of the Company or any Affiliate, nor limit the right of the Company or Affiliate to discharge or otherwise deal with any individual without regard to the existence of the Plan.

 

(c)                                  The Plan shall at all times be entirely unfunded.  No provision shall at any time be made with respect to segregating assets of the Company or any Affiliate for payment of any Severance Pay or other benefits hereunder.  No employee or any other person shall have any interest in any particular assets of the Company or any Affiliate by reason of the right to receive Severance Pay or other benefits under the Plan, and any such employee or any other person shall have only the rights of

 

5

 

a general unsecured creditor of the Company or an Affiliate with respect to any rights under the Plan.

 

14.                                 Appeals Procedure.  If a Participant feels he or she should be eligible for Severance Pay or benefits under the Plan, the Participant may file a written claim with the Administrator. If a written claim for Severance Pay or benefits under the Plan by a Participant or his or her beneficiary is denied, either in whole or in part, the Administrator will let the claimant know in writing within 90 days.  If the claimant does not hear within 90 days, the claimant may treat the claim as if it had been denied.  A notice of a denial of a claim will refer to a specific reason or reasons for the denial of the claim; will have specific references to the Plan provisions upon which the denial is based; will describe any additional material or information necessary for the claimant to perfect the claim and explain why such material information is necessary; and will have an explanation of the Plan’s review procedure.

 

The claimant will have 60 days after the date of the denial to request in writing for a review and a hearing.  The claimant must file a written request with the CEO (“Claims Administrator”) for a review; provided, however, that, if the claimant is the CEO, the Claims Administrator for such purpose shall be the Company’s Board of Directors.  During this time the claimant may review pertinent documents and may submit issues and comments in writing.  The Claims Administrator will have another 60 days in which to consider the claimant’s written request for review.  If special circumstances require an extension of time for processing, the Claims Administrator may have an additional 60 days to answer the claimant.  The claimant will receive a written notice if the extra days are needed.  The claimant may submit in writing any document, issues and comments he or she may wish.  The decision of the Claims Administrator will tell the claimant the specific reasons for his or her actions, and refer the claimant to the specific Plan provisions upon which its decision is based.

 

15.                             Rights Under ERISA.  Each Participant in the Plan is entitled to certain rights and protection under ERISA, which provides that all Participants shall be entitled to:

 

(a)           Examine, without charge, at the Company’s office all Plan documents.

 

(b)                                 Obtain copies of all Plan documents and other Plan information upon written request to the Administrator.  The Administrator may make a reasonable charge for the copies.

 

In addition to creating rights for Participants, ERISA imposes duties upon the people who are responsible for the operation of an employee benefit plan.  The people who operate the Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of the Participants and beneficiaries.  No one,  including the Company, any Affiliate or any other person, may fire a Participant or otherwise discriminate against a Participant in any way to prevent him or her from obtaining a benefit or exercising his or her rights under ERISA.  If a Participant’s claim for a benefit is denied in whole or in part, he or she must receive a written explanation of the reason for the denial.  A Participant has the

 

6

 

right to have the Claims Administrator review and reconsider his or her written claim.  Under ERISA, there are steps a Participant can take to enforce the above rights.  For instance, if a Participant requests materials from the Administrator and does not receive them within thirty (30) days, he or she may file suit in a federal court.  In such a case the court may require the Company to provide the materials and pay the Participant up to $110 a day until the Participant receives the materials, unless the materials were not sent because of reasons beyond the control of the Company.  If a Participant has a claim for benefits, which is denied or ignored, in whole or in part, he or she may file suit in a state or federal court.  If a Participant is discriminated against for asserting his or her rights, he or she may ask assistance from the United States Department of Labor, or he or she may file suit in a federal court.  The court will decide who should pay the court costs and legal fees.  If the Participant is successful, the court may order the person he or she has sued to pay these costs and fees.  If the Participant loses, the court may order him or her to pay these costs and fees, for example, if it finds his or her claim to be frivolous.  If a Participant has questions about the Plan, he or she should contact the Administrator.  If a Participant has any questions about this statement or about his or her rights under ERISA, he or she should contact the nearest Area Office of the United States Labor-Management Services Administration, Department of Labor.

 

16.           Plan Facts:

 

	
Company:
   Address:
    	
 
    	
Hospira, Inc.
   275 North Field Drive
   Lake Forest, IL 60045
    
	
Plan   Name:
    	
 
    	
Hospira   Corporate Officer Severance Plan
    
	
Type   of Plan:
    	
 
    	
Severance   Plan-Welfare Benefits Plan
    
	
Plan   Year:
    	
 
    	
Calendar   year
    
	
Employer   Identification Number (EIN):
    	
 
    	
20-0504497
    
	
Plan   Administrator:
    	
 
    	
Senior   Vice President, Organizational Transformation and People Development
    
	
Business   Address:
    	
 
    	
275   North Field Drive
   Lake Forest, IL 60045
    
	
Agent   for Service of Legal Process:
    	
 
    	
Senior   Vice President, Organizational Transformation and People Development
    
	
Address
    	
 
    	
275   North Field Drive
   Lake Forest, IL 60045
    

 

7

 

Hospira Corporate Officer Severance Plan

Exhibit A

List of Plan Participants

 

	
Name
    	
 
    	
Position
    
	
 
    	
 
    	
 
    
	
Svend   Andersen
    	
 
    	
Corporate   Vice President and President, Europe, Middle East and Africa
    
	
 
    	
 
    	
 
    
	
F.   Michael Ball
    	
 
    	
Chief   Executive Officer
    
	
 
    	
 
    	
 
    
	
Anthony   N. Cacich
    	
 
    	
Corporate   Vice President, One to One
    
	
 
    	
 
    	
 
    
	
Anil   D’Souza
    	
 
    	
Corporate   Vice President, Global Marketing and Corporate Development
    
	
 
    	
 
    	
 
    
	
Francois   Dubois
    	
 
    	
Senior   Vice President, Quality
    
	
 
    	
 
    	
 
    
	
Arthur   J. Fiocco, Jr.
    	
 
    	
Corporate   Vice President, Pharmaceutical Operations
    
	
 
    	
 
    	
 
    
	
James   H. Hardy, Jr.
    	
 
    	
Senior   Vice President, Operations
    
	
 
    	
 
    	
 
    
	
Richard   J. Hoffman
    	
 
    	
Corporate   Vice President, Controller
    
	
 
    	
 
    	
 
    
	
Daphne   Jones
    	
 
    	
Senior   Vice President and Chief Information Officer
    
	
 
    	
 
    	
 
    
	
Jim   Mahoney
    	
 
    	
Corporate   Vice President, Global Manufacturing Operations
    
	
 
    	
 
    	
 
    
	
Kenneth   F. Meyers
    	
 
    	
Senior   Vice President, Organizational Transformation and People Development
    
	
 
    	
 
    	
 
    
	
Thomas   Moore
    	
 
    	
Corporate   Vice President and President, U.S.
    
	
 
    	
 
    	
 
    
	
Timothy   Oldham
    	
 
    	
Corporate   Vice President and President, Asia-Pacific
    
	
 
    	
 
    	
 
    
	
Mary   O’Neill
    	
 
    	
Corporate   Vice President, Supply Chain and Device Operations
    
	
 
    	
 
    	
 
    
	
Sumant   Ramachandra
    	
 
    	
Senior   Vice President, Research and Development, Medical and Regulatory Affairs and   Chief Scientific Officer
    
	
 
    	
 
    	
 
    
	
Brian   Smith
    	
 
    	
Senior   Vice President, General Counsel and Secretary
    
	
 
    	
 
    	
 
    
	
Ron   Squarer
    	
 
    	
Senior   Vice President, Chief Commercial Officer
    
	
 
    	
 
    	
 
    
	
Thomas   Werner
    	
 
    	
Senior   Vice President, Finance and Chief Financial Officer
    

 

Exhibit A (as revised May 10, 2011)

 

8

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