Document:

HSP-EX 10.8_12.31.2013_10K

SEVERANCE AGREEMENT

This Severance Agreement (“Agreement”) is entered into by and between Neil Ryding (“Ryding“ or “You”) and Hospira, Inc., (“the Company”).

		
	1.
	Last Day of Work:  The parties agree that your last day of employment with Hospira will be October 11, 2013.

		
	2.
	Entire Agreement:  The parties understand that this Agreement constitutes the entire agreement between the parties and supersedes all other prior agreements and undertakings both written and oral among the parties with respect to the subject matter hereof, except for the Employee Agreement previously entered into by you and Hospira, dated July 19, 2012 (the “Employee Agreement”) (unless specifically modified herein).  Any amendments or modifications to this Agreement shall only be valid if made in writing and signed by both parties.

		
	3.
	Payments and Other Consideration:  Subject to the terms of this Agreement, Hospira will provide you with:

		
	(a)
	a “Severance Payment” equaling up to two (2) years of your current, as of the date of your last day of employment, base salary (less applicable taxes and withholdings), paid to you in equal monthly installments over the course of 24 months, effective from the date you sign this Agreement, provided that you will forfeit such payment if you fail to execute this Agreement, and the payment does not commence, within 60 days after your last day of employment.  Severance payments will terminate upon the earlier of:  (i) your commencement of new employment in any capacity; or (ii) two years from the date on which you sign this Agreement;

		
	(b)
	a lump sum payment equivalent to 130% of the cost of 52‐weeks of COBRA (as defined in Section 4980B of the Internal Revenue Code of 1986, as amended, and Sections 601‐609 of the Employee Retirement Income Security Act of 1974, as amended) continuation coverage premiums in lieu of any continued medical, dental, vision, and other welfare benefits offered by Hospira; and such period of COBRA continuation coverage will be included as part of the period during which you may elect continued group health coverage under COBRA;

		
	(c)
	outplacement services, selected by Hospira and at its expense, for a period beginning on your last date of employment and continuing until the earlier to occur of:  (i) your acceptance of other employment; or (ii) 12 months after the date you sign this Agreement.  The outplacement service provider will be instructed to bill Hospira directly for these services; 

		
	(d)
	Your equity grants are subject to the terms of the Hospira 2004 Long-Term Stock Incentive Plan, as amended, the agreements under which they were granted, and the administrative rules and procedures regarding such equity grants.  Under those terms, any stock options that are not vested as of your last day of employment will expire as of that date and be forfeited.  Options that are vested as of your last day of employment are exercisable for three months following such date, when they will lapse.  Ryding understands that he will forfeit all performance share units and performance-based restricted stock unit grants.

		
	(e)
	Bonus Payment:  Ryding is not entitled to a 2013 or 2014 Hospira Performance Incentive Plan (PIP) or Hospira Incentive Plan (HIP) payment. 

		
	(f)
	Sign on Bonus and Relocation Reimbursement:  Hospira agrees that it will not seek to recover amounts paid to Ryding as a sign-on bonus or relocation expense.

		
	4.
	Vacation Payments:  Ryding agrees that the payment provided in paragraph 3(a) is inclusive of any earned but unused vacation for 2013.

    
		
	5.
	Return of Any Outstanding Payments:  You agree to pay any and all outstanding amounts you owe to Hospira and you hereby authorize Hospira to withhold any such outstanding amounts from your final paycheck and/or Severance Payment.

		
	6.
	Return of Company Property:  By your signature below, you agree that all company property, including, but not limited to, any: (a) electronics, such as company issued computer, iPhone (or any company cell phone) and iPad; and (b) documents, memoranda, notes, records, reports, photographs, drawings, plans, papers, or other documents made or compiled by or made available to you during the course of employment with Hospira (whether in paper or electronic format), and any copies of abstracts thereof, whether or not they contain Confidential Information, are and shall be the property of Hospira.  You have made a diligent effort to locate any such Company property within your possession and have delivered it to Hospira.  In the event that you locate an item of Company property that you inadvertently failed to deliver to Hospira, you will do so promptly upon discovering it.  

		
	7.
	Employee Agreement:  The parties agree that the Employee Agreement remains in full force and effect, except that paragraphs 9, 12 and 15 of the Employee Agreement are superseded and replaced by the paragraphs below:

		
	(a)
	Ryding shall not, for a period of two (2) years following his last day of employment at Hospira, become employed (whether in a temporary or permanent capacity) or perform consulting work for CareFusion, Baxter Healthcare, B Braun Medical and/or Smiths Medical;

		
	(b)
	Ryding shall not, for a period of two (2) years following his last day of employment at Hospira, solicit or assist in soliciting, either directly or indirectly, any employee of Hospira to work for or with Ryding or any company, entity or organization that has employed Ryding or retained him as a consultant or independent contractor during the two years following the termination of his employment at Hospira; 

		
	(c)
	Ryding further agrees that for a period of one year following his last day of employment at Hospira, he will not become employed by, perform consulting services, or otherwise work for or with any company, entity, or organization in a capacity involving the research, discovery, development, manufacture, importation, marketing, promotion or sale of products that are directly competitive with Hospira’s Device products;

		
	(d)
	Ryding agrees that he will not disclose any Confidential Information, as that term is defined in Paragraph 2(c) of the Employee Agreement, to any employer, prospective employer or entity or organization by whom he may be employed or for whom he may provide consulting services; and 

		
	(e)
	For a period of two (2) years after the last date of Ryding’s employment with Hospira, Ryding shall communicate his obligations under this Agreement and the Employee Agreement to any subsequent employer(s), including providing such employer(s) with a copy of this Agreement and the Employee Agreement.  Ryding shall also advise Hospira of the name and address of any subsequent employer within this period. 

Ryding agrees that if he engages in activities prohibited under his Employee Agreement and paragraph 7 above, then Hospira has the right to immediately cease any remaining payments owed to him under paragraph 3(a) of this Agreement and to claw back any and all payments made to him under paragraph 3(a) of this Agreement.

		
	8.
	Notice of Re-Employment:  Ryding agrees that he will immediately notify Hospira’s Chief Human Resources Officer upon commencing any employment within 24 months of the date of this Agreement.

		
	9.
	Non-Disparagement:  You agree to maintain and protect the reputation of Hospira and its businesses, products and personnel, and you shall not disparage Hospira or any person representing Hospira, or engage in any similar activities which reasonably could be anticipated to affect negatively the reputation of Hospira and its businesses, products and personnel, and relationships with current or prospective customers, suppliers and employees.  Hospira also agrees that it shall instruct the entire Senior Leadership Team and Device Leadership Team not to disparage you.  

		
	10.
	Cooperation Agreement:  You agree to make reasonable efforts to cooperate with Hospira with respect to any suit, claim or question arising regarding any matter of which you had knowledge during your employment with Hospira.  Such cooperation shall be at such mutually agreed upon times that are reasonably acceptable to you and your schedule and shall include, but not be limited to, appearance at depositions, assistance in responding to discovery demands, and in preparing for trial and appearance at trial.  Hospira will reimburse you for all such reasonable out-of-pocket expenses you incur in providing such assistance.  If Hospira asks you to spend more than twenty (20) hours pursuant to this provision, it will pay you $200.00/per hour for your time after 20 hours.

		
	11.
	General Release and Covenant Not to Sue:  In exchange for the payment and benefits listed in paragraph 3, except as set forth herein, you agree to and forever waive, release, and discharge Hospira from any and all claims, actions, causes of action, obligations for damages, losses, expenses, attorneys’ fees or costs, back pay, loss of earnings, debts, reinstatement and any and all other demands which you may have against Hospira arising out of your employment with Hospira, and/or any other occurrences whatsoever to the effective date of this Agreement, whether known or unknown, suspected or concealed, and whether presently asserted or otherwise, including but not limited to:

		
	(a)
	claims arising under Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; Section 1981 of the Civil Rights Act of 1866; the Americans with Disabilities Act; the Age Discrimination in Employment Act; the Fair Labor Standards Act; the Family Medical Leave Act; the Employee Retirement Income Security Act; the Worker Adjustment and Retraining Notification Act (WARN); and/or claims arising out of any other state, federal, local or municipal employment statute; and/or

		
	(b)
	claims arising out of any other federal, state or local statute, constitution, ordinance, regulation or at common law; and/or

		
	(c)
	any other claim whatsoever, including but not limited to, claims relating to implied or express employment contracts, public policy or tort claims, retaliatory discharge claims, negligence, negligent hiring, defamation claims, wrongful discharge claims, invasion of privacy claims, intentional infliction of emotional distress claims, intentional interference with contract claims, common law claims, personal injury claims, or any other claim whatsoever relating to your employment, your discharge of employment and/or any other occurrence to the date of this Agreement.

The parties agree that by signing this Agreement you do not release any claims which you cannot waive or release by law.  Further, the parties agree that you are not releasing any claims you may have to enforce for breach of this Agreement, any claims that may arise after you sign this Agreement, any right you may have to unemployment compensation or worker’s compensation, or any rights  you may have as an employee and/or officer of Hospira to indemnification in connection with third party claims or proceedings, under any statute, by-laws insurance policies, or Hospira policies.  You further agree that, in the event that you may be included as a claimant in any administrative charge or investigation or may be a member of a class, to waive any monetary recovery from Hospira as a result of such inclusion.  In addition, you agree never to sue Hospira in any forum for any claim covered by the above waiver and release language.  If you violate this Agreement by suing Hospira in connection with a released claim, then you shall reimburse the payments and cost of benefits provided by paragraph 3 and be liable to Hospira for its reasonable attorneys’ fees and other litigation costs incurred in defending against such a suit.
12.    Other Representations: You represent and warrant that:

		
	(a)
	you have read this Agreement in its entirety and are advised to obtain counsel before signing this Agreement;

		
	(b)
	you are signing this Agreement knowingly and voluntarily, without coercion of any kind, and with full knowledge and understanding of the provisions of this Agreement, their legal and practical effect, which shall be final and binding upon you and Hospira; 

		
	(c)
	you are not otherwise entitled to the payments and benefits described in paragraph 3(a)–(c); 

		
	(d)
	you understand that you may take up to 21 days, or more if extended in writing by Hospira, to review and consider this Agreement;

		
	(e)
	you are not relying on any statements, representations or promise made by Hospira, except as specifically set forth in this Agreement;

		
	(f)
	you acknowledge that you have not suffered any on-the-job injury for which you have not filed a claim;

		
	(g)
	if any part of this Agreement is found to be illegal or invalid, the rest of this Agreement will be enforceable; and

		
	(h)
	after signing this Agreement, you have 7 days to revoke this Agreement and can do so by delivering written revocation to Ken Meyers, Senior Vice President, Chief Human Resources Officer.  If you do not revoke this Agreement, you will receive the payments and benefits described in paragraph 3.

		
	13.
	Change in Control Agreement:  In exchange for the payment and benefits listed in paragraph 3, you agree that:  (a) you shall not be entitled to any payments or benefits under the Agreement regarding Change in Control by and between you and Hospira (“Change in Control Agreement”); and (b) the Change in Control Agreement shall be deemed terminated as of the date hereof.  As of the date on which Hospira offered you this Agreement there had been no Change in Control, and was no Potential Change in Control, as defined by the Change in Control Agreement.

		
	14.
	Choice of Law Provision:  The validity, interpretation, construction, performance and enforcement of this Agreement shall be governed by Illinois law.

		
	15.
	Binding Nature of the Agreement: This Agreement shall be binding upon, and inure to the benefit of, the parties’ respective heirs, executors, administrators, beneficiaries, trustees, legal representatives, successors, parents, subsidiaries, affiliates, divisions, officers, directors, agents and assigns.

		
	16.
	Notice:  All notices, requests, demands or other communications provided for by this Agreement shall be in writing and sufficiently given if and when mailed by registered or certified mail, return receipt requested, postage prepaid, or if personally delivered to the parties entitled thereto at the addresses stated below.  If either party wishes the notices to be sent to a different address that party will provide the other party with prompt notice of the change.  

Mr. Ken Meyers
Senior Vice President, Chief Human Resources Officer 
Hospira, Inc.
275 North Field Drive
Lake Forest, IL  60045

  /s/ Neil Ryding                      15TH NOVEMBER, 2013        
Neil Ryding                        Date

  /s/ Ken Meyers                
Hospira, Inc.

By:     Ken Meyers
Senior Vice President,
Chief Human Resources Officer

  2nd Dec 2013                    
Date

1HSP-EX 10.38_12.31.2013_10K

EMPLOYEE AGREEMENT
Agreement made between HOSPIRA, INC., a Delaware corporation, on behalf of itself and its Subsidiaries as defined below) (collectively, "HOSPIRA"), and the undersigned employee ("EMPLOYEE"), WITNESS the following
EMPLOYEE acknowledges that HOSPIRA has the right to protect its good will and interest in Confidential Information (as defined below) and obtain the benefit of certain discoveries, inventions, improvements, and innovations developed by its employees.
In consideration of the execution of this Agreement, the mutual agreements contained in this Agreement and the employment of EMPLOYEE by HOSPIRA, the parties agree as follows:
1.EMPLOYEE is engaged by HOSPIRA in a position of trust and confidence in which EMPLOYEE will use, observe, obtain or have access to Confidential Information (as defined below).
2.As used in this Agreement, the following terms have the meanings specified:
		
	(a)
	"HOSPIRA Customer" means any person, corporation or any other commercial organization or entity that EMPLOYEE called upon or dealt with for purposes of selling, promoting or marketing a service or product on behalf of HOSPIRA during the last two years of EMPLOYEE's employment with HOSPIRA.

		
	(b)
	"Competing Products" means: any product, process or service that has the same or similar purpose or use as a product, process or service researched, discovered, developed, manufactured, imported, marketed, sold, offered for sale or used by HOSPIRA, which is related in any way to EMPLOYEE’s employment with HOSPIRA.

		
	(c)
	“Confidential Information” means all discoveries, inventions, improvements and innovations, whether or not patentable or copyrightable, methods, processes, techniques, shop practices, formulae, compounds, compositions, organisms, computer software, equipment, research data, clinical and pharmacological data, marketing, pricing and sales information, personnel data, customer lists, financial data, plans and all other know-how, trade secrets and proprietary information which are in the possession of HOSPIRA and which have not been published or disclosed to the general public.  Confidential Information also includes information received by HOSPIRA under an obligation of confidentiality to any third party.

		
	(d)
	“Subsidiary” means a corporation or any other commercial organization or entity, and any branch or office of any of the foregoing, thirty percent (30%) or more of the assets or voting securities of which is owned or controlled, directly or indirectly, by HOSPIRA.

3.All identification badges, access cards or keys, automobiles, computers or other equipment, memoranda, notes, records, reports, photographs, drawings, plans, papers, computer software, compounds and other documents, products and materials made or compiled by or made available.to EMPLOYEE during the course of employment with HOSPIRA, and any copies, summaries or abstracts thereof, whether in electronic, paper or other form and whether or not they contain Confidential Information, are and shall be the property of HOSPIRA and shall be delivered to HOSPIRA by EMPLOYEE prior to termination of employment with HOSPIRA. 
4.All discoveries, inventions, improvements, software, innovations, trademarks, trade dress, or Internet domain names, whether or not patentable, copyrightable, or registerable (including all data and records pertaining thereto) which EMPLOYEE may invent, discover, originate, or conceive during the term of employment with HOSPIRA or which may arise out of or result from Confidential Information obtained, provided or otherwise acquired, either directly or indirectly, by EMPLOYEE in connection with EMPLOYEE’s employment with HOSPIRA, shall be the sole and exclusive property of HOSPIRA.  EMPLOYEE shall promptly and fully disclose each and all such discoveries, inventions, improvements, software or innovations to HOSPIRA.
5.EMPLOYEE shall, and does hereby, assign to HOSPIRA, EMPLOYEE's entire right, title, and interest to any of the discoveries, inventions, improvements, software, innovations, trademarks, trade dress, and Internet domain names described in Paragraph 4 of this Agreement and any related U.S. or foreign counterparts, including patents, patent applications, copyrights and registrations; shall execute any instruments considered necessary by HOSPIRA to convey or perfect HOSPIRA’s ownership thereof; and shall assist HOSPIRA in obtaining, defending and enforcing its rights therein.  HOSPIRA shall bear all expenses it authorizes be incurred in connection with such activity and shall pay to EMPLOYEE reasonable compensation for any time spent by EMPLOYEE performing such duties at the request of HOSPIRA after termination of employment.  In addition, EMPLOYEE shall maintain in confidence any information, including without limitation documents and communications, disclosed to EMPLOYEE after EMPLOYEE’s term of employment with HOSPIRA in connection with EMPLOYEE’s obligations hereunder.
6.Paragraphs 4 and 5 of this Agreement shall not apply to an invention for which no equipment, supplies, facility or trade secret information of HOSPIRA was used and which was developed entirely on EMPLOYEE’s own time, unless (a) at the time of completion of reduction to practice the invention relates (1) to the business of HOSPIRA or (2) to HOSPIRA’s actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by the EMPLOYEE for HOSPIRA.
7.EMPLOYEE understands that HOSPIRA has hired EMPLOYEE because of EMPLOYEE’s general skills and abilities and not because of EMPLOYEE’s possession, if any, of any former employer’s, customer’s, or other third party’s confidential or proprietary information.  EMPLOYEE hereby certifies that EMPLOYEE has returned all property, data, and documents, whether in electronic, paper, or other form, of any former employer, customer, or other third party.  EMPLOYEE agrees (a) not to disclose or use, directly or indirectly, in furtherance of EMPLOYEE’s employment with HOSPIRA, any confidential or proprietary information, whether in electronic, paper, or other form, that EMPLOYEE obtained through EMPLOYEE’s employment with any previous employer(s) and (b) to comply with and abide by any confidentiality obligations that EMPLOYEE has at the time hired by HOSPIRA.
8.EMPLOYEE shall use all best efforts to protect the secrecy and confidentiality of Confidential Information.  Employee shall not, during the term of employment with HOSPIRA or thereafter, use or disclose, or assist in the disclosure to others, directly or indirectly, any Confidential Information, except as required and authorized in the scope of EMPLOYEE’s job responsibilities and in the furtherance of HOSPIRA’s business.  EMPLOYEE acknowledges that the relationship of EMPLOYEE to HOSPIRA with respect to Confidential Information shall be fiduciary in nature.
9.EMPLOYEE shall not, during the term of employment with HOSPIRA or for a period of one year after the termination of employment with HOSPIRA, in each country in which HOSPIRA conducts business, engage, directly or indirectly, in any activity or employment, for the benefit of Employee or others, in a manner that contributes to any research, discovery, development, manufacture, importation, marketing, promotion, sale or use of one or more Competing Products.  This paragraph shall only apply to the extent permitted by the laws of the state in which EMPLOYEE works or worked on behalf of HOSPIRA immediately prior to the termination of employment.
10.EMPLOYEE shall not, during the term of employment with HOSPIRA or for a period of one year after the termination of employment with HOSPIRA, in each country in which HOSPIRA conducts business, engage, directly or indirectly, for the benefit of EMPLOYEE or others, 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 is likely to be used or disclosed, notwithstanding EMPLOYEE’s undertaking to the contrary.  This paragraph shall apply only to the extent permitted by the laws of the state in which EMPLOYEE works on behalf of HOSPIRA or worked immediately prior to the termination of employment with HOSPIRA, and shall not be construed to limit in any way EMPLOYEE’s obligation not to use or disclose Confidential Information as set forth in Paragraph 8 above.
11.EMPLOYEE shall not, directly or indirectly, during the term of employment with HOSPIRA or for a period of one year after termination of employment with HOSPIRA, promote or market any Competing Products to any HOSPIRA Customer, or solicit any HOSPIRA Customers for purposes of selling any Competing Products.
12.EMPLOYEE shall not, during the term of employment with HOSPIRA or for a period of two years after termination of employment with HOSPIRA, directly or indirectly, for the benefit of EMPLOYEE or others, solicit or assist in soliciting to work as an employee, independent contractor, partner, or otherwise, any employee of HOSPIRA about whom EMPLOYEE acquired knowledge through EMPLOYEE’s employment with HOSPIRA.
13. 
This Agreement shall not be construed to limit in any way any "shop right," "fiduciary duty" or other common law or statutory or contractual rights of HOSPIRA, in or to any Intellectual Property or Confidential Information, including without limitation any trade secrets, which HOSPIRA has or may have by virtue of EMPLOYEE's employment.
14.    EMPLOYEE is employed at will, meaning either HOSPIRA or EMPLOYEE may terminate the employment relationship at any time, with or without notice, and for any reason or no reason at all.
15.For a period of two years after termination of employment with HOSPIRA, EMPLOYEE shall communicate EMPLOYEE's obligations under this Agreement to each subsequent employer(s), including providing to each subsequent employer(s) a copy of this Agreement, and shall advise HOSPIRA of the name and address of EMPLOYEE's intended future employer. HOSPIRA shall have the right to advise any subsequent employer of EMPLOYEE's obligations hereunder.
16.If any provision or provisions (or portions thereof) of this Agreement are held to be unenforceable by any court, such provision or provisions (or portions thereof) will be limited or eliminated to the minimum extent necessary so that this Agreement shall otherwise remain in full force and effect and be enforceable. This Agreement shall inure to the benefit of, be binding upon and be enforceable by HOSPIRA, and its successors and assigns and EMPLOYEE and EMPLOYEE's heirs, executors, and administrators.
17.This Agreement shall be construed, and its enforceability and the relationship of the parties shall be determined, in all respects under the laws of Illinois, without giving effect to conflict of laws.
18.EMPLOYEE agrees to abide by the HOSPIRA Code of Business Conduct.
19.The failure or refusal by HOSPIRA either to insist upon the strict performance of any provision of this Agreement or to exercise any right in any one or more instances or circumstances shall not be construed as a waiver or relinquishment of such provision or right, nor shall such failure or refusal be deemed a custom or practice contrary to such provision or right of this Agreement.
20.This Agreement is the sole, entire, and complete agreement of the parties relating to the subject matter hereof, replaces and supersedes all prior versions and representations, and shall apply, notwithstanding that such employment may include significant changes in responsibilities, location, and other terms and conditions, including nature or scope of Confidential Information to which EMPLOYEE has access. The obligations under this Agreement shall survive termination of employment.
21.No statements, promises, or representations have been made by any party to the other, or relied upon, other than as expressly provided in this Agreement with respect to the subject matter of the Agreement. This Agreement (and any provision thereof) may not be modified, changed, clarified or interpreted by the parties, except in a writing specifying the modification, change, clarification or interpretation, and signed by an HOSPIRA Corporate Officer and EMPLOYEE.

                                                    
Witness                EMPLOYEE Signature

                                                    
HOSPIRA, INC.                EMPLOYEE Printed Name
    
                            
                                                    
By                                Address
    
Dated                20            _                    _______
EMPLOYEE Social Security Number

1

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