Hospira Executive Officer Severance Plan (Effective September 1, 2007 and as Amended Through the Fourth Amendment Effective August 21, 2013) (November 6th, 2013)
Purpose. The Hospira Executive 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 or under any law, statute or regulation.
Summary of 2013 Terms of Employment for Named Executive Officers (May 1st, 2013)
Each officer is a participant in the Hospira Inc. 2004 Performance Incentive Plan, which is filed as Exhibit 10.4 for the Hospira, Inc. Annual Report on Form 10-K for the year ended December 31, 2010. The plan provides for a base award equal to 2.0% of Hospira's earnings before interest, taxes, depreciation and amortization for the chief executive officer and 1.0% for the other named executive officers. The compensation committee of Hospira's board of directors has discretion to reduce, but not increase, the award from the base award. The committee may consider, among other factors, Hospira's adjusted net income, corporate well-being or individual performance as factors in exercising such discretion and determining actual awards payable under such plan.