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.