Document:

ex-10_1.htm

    Exhibit
      10.1

    
       

      
        
          Adopted
            on

          September
            29, 2000

          Amended
            on January 25, 2002

          Restated
            on March 11, 2005 as a

          result
            of two-for-one stock split

          Amended
            on December 2, 2005

          Restated
            on February 17, 2006

          as
            a result of two-for-one

          stock
            split

          Amended
            on January 26, 2007

          Corrected
            March 30, 2007

      

    

    

    AETNA
      INC.

    NON-EMPLOYEE
      DIRECTOR COMPENSATION PLAN

    

    

    SECTION
      1.                                ESTABLISHMENT
      OF PLAN; PURPOSE.

     

    The
      Plan is hereby established to permit Eligible Directors of the Company, in
      recognition of their contributions to the Company, to receive Shares in the
      manner described below.  The Plan is intended to enable the Company to
      attract, retain and motivate qualified Directors and to enhance the long-term
      mutuality of interest between Directors and stockholders of the
      Company.

     

    SECTION
      2.                                DEFINITIONS.

     

    When
      used in this Plan, the following terms shall have the definitions set forth
      in
      this Section:

     

    “Accounts”
      shall mean an Eligible Director’s Stock Unit Account and Interest Account, as
      described in Section 9.

     

    “Affiliate”
      shall mean any corporation or other entity (other than the Company or one of
      its
      Subsidiaries) in which the Company directly or indirectly owns at least twenty
      percent (20%) of the combined voting power of all classes of stock of such
      entity or at least twenty percent (20%) of the ownership interests in such
      entity.

     

    “Board
      of Directors” shall mean the Board of Directors of the
      Company.

     

    “Code”
      shall mean the Internal Revenue Code of 1986, as amended, and the regulations
      thereunder.

     

    “Committee”
      shall mean the Nominating and Corporate Governance Committee of the Board of
      Directors or such other committee of the Board as the Board shall designate
      from
      time to time.

     

    “Company”
      shall mean Aetna U.S. Healthcare Inc., a Pennsylvania
      corporation.  Following consummation of the transactions contemplated
      by the Merger Agreement, Aetna U.S. Healthcare Inc. will change its name to
      Aetna Inc.

     

    “Compensation”
      shall mean the annual retainer fees earned by an Eligible Director for service
      as a Director, the annual retainer fee, if any, earned by an Eligible Director
      for service as a member of a committee of 

     

    
      
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    the
      Board of Directors; and any fees earned by an Eligible Director for attendance
      at meetings of the Board of Directors and any of its committees.

     

    “Director”
      shall mean any member of the Board of Directors, whether or not such member
      is
      an Eligible Director.

     

    “Disability”
      shall mean an illness or injury that lasts at least six months, is expected
      to
      be permanent and renders a Director unable to carry out his/her
      duties.

     

    “Effective
      Date” shall mean the date on which the transactions contemplated by the
      Merger Agreement are consummated.

     

    “Eligible
      Director” shall mean a member of the Board of Directors who is not an
      employee of the Company.

     

    “Exchange
      Act” shall mean the Securities Exchange Act of 1934, as
      amended.

     

    “Fair
      Market Value” shall mean on any date, with respect to a Share, the closing
      price of a Share as reported by the Consolidated Tape of the New York Stock
      Exchange Listed Shares on such date, or if no shares were traded on such
      Exchange on such date, on the next date on which the Common Stock is
      traded.

     

    “Government
      Service” shall mean the appointment or election of the Eligible Director to
      a position with the federal, state or local government or any political
      subdivision, agency or instrumentality thereof.

     

    “Grant”
      shall mean a grant of Units under Section 5, Options under Section 7 and Other
      Stock Based Awards under Section 12.

     

    “Interest
      Account” shall mean the bookkeeping account established to record the
      interests of an Eligible Director with respect to deferred Compensation that
      is
      not deemed invested in Units.

     

     “Merger
      Agreement” shall mean the Agreement and Plan of Restructuring and Merger
      among ING America Insurance Holdings, Inc., ANB Acquisition Corp., the Former
      Parent and for limited purposes only, ING Groep N.V., dated as of July 19,
      2000.

     

    “Option”
      shall mean the right granted under Section 7 to purchase the number of shares
      of
      Stock specified by the Board of Directors, at a price and for the term fixed
      by
      the Board of Directors in accordance with the Plan and subject to any other
      limitations and restrictions as this Plan and the Board of Directors shall
      impose, which such option is not intended to qualify as an “incentive stock
      option” under Section 422 of the Code.

     

    “Other
      Stock Based Awards” means any right granted under Section 12.

     

    “Prior
      Plan” shall mean the Aetna Inc. Non-Employee Director Deferred Stock and
      Deferred Compensation Plan.

     

    “Retirement”
      shall mean (i) with respect to Units outstanding on January 26, 2007 and (ii)
      with respect to Units issued after January 26, 2007, termination of service
      as a
      Director on or after age 72.

     

    “Shares”
      shall mean shares of Stock.

     

    “Stock”
      shall mean the Common Shares, $.01 par value, of the Company.

     

    “Stock
      Unit Account” shall mean, with respect to an Eligible Director who has
      elected to have deferred amounts deemed invested in Units, a bookkeeping account
      established to record such Eligible Director’s interest 

     

    
      
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    under
      the Plan related to such Units.

     

    “Subsidiary”
      shall mean any entity of which the Company possesses directly or indirectly
      fifty percent (50%) or more of the total combined voting power of all classes
      of
      stock of such entity.

     

    “Unit”
      shall mean a contractual obligation of the Company to deliver a Share or pay
      cash based on the Fair Market Value of a Share to an Eligible Director or the
      beneficiary or estate of such Eligible Director as provided herein.

     

    “Year
      of Service as a Director” shall mean a period of 12 months of service as a
      Director, measured from the effective date of a Unit.

     

    SECTION
      3.                                ADMINISTRATION.

     

    The
      Plan shall be administered by the Board of Directors. The Board of Directors
      shall have the responsibility of construing and interpreting the Plan and of
      establishing and amending such rules and regulations as it deems necessary
      or
      desirable for the proper administration of the Plan. Any decision or action
      taken or to be taken by the Board of Directors, arising out of or in connection
      with the construction, administration, interpretation and effect of the Plan
      and
      of its rules and regulations, shall, to the maximum extent permitted by
      applicable law, be within its absolute discretion (except as otherwise
      specifically provided herein) and shall be conclusive and binding upon all
      Eligible Directors and any person claiming under or through any Eligible
      Director.

     

    Subject
      to the terms of the Plan and applicable law, and in addition to other express
      powers and authorizations conferred on the Board of Directors by the Plan,
      the
      Board of Directors shall have full power and authority to: (i) determine the
      number of Shares to be covered by, or with respect to which payments, rights,
      or
      other matters are to be calculated in connection with, Units and Options; (ii)
      determine the terms and conditions of any Option; (iii) interpret and administer
      the Plan and any instrument or agreement relating to, or Grant made under,
      the
      Plan; (iv) establish, amend, suspend, or waive such rules and regulations and
      appoint such agents as it shall deem appropriate for the proper administration
      of the Plan; and (v) make any other determination and take any other action
      that
      the Board of Directors deems necessary or desirable for the administration
      of
      the Plan.

     

    The
      Plan shall be administered such that awards under the Plan shall be deemed
      to be
      exempt under Rule 16b-3 of the Securities and Exchange Commission under the
      Exchange Act (“Rule 16b-3”), as such Rule is in effect on the Effective Date of
      the Plan and as it may be subsequently amended from time to time.

     

    SECTION
      4.                                SHARES
      AUTHORIZED FOR ISSUANCE.

     

    4.1           Maximum
      Number of Shares.  The aggregate number of Shares with
      respect to which Grants may be awarded to Eligible Directors under the Plan
      shall not exceed 250,000 Shares, subject to adjustment as provided in Section
      4.2 below, plus that number of Shares equal to the aggregate number of Shares
      credited to each Eligible Director’s Stock Unit Account as a result of transfers
      of stock units from the Prior Plan pursuant to Section 9.10.  If any
      Unit or Option is settled in cash or is forfeited without a distribution of
      Shares, the Shares otherwise subject to such Unit or Option shall again be
      available for Grants hereunder.  [As of March 11, 2005, the shares
      available for issuance under the Plan were adjusted  pursuant to
      Section 4.2 as a result of the Company’s 2005 2-for-1 stock split.  As
      of February 17, 2006, the shares available for issuance under the Plan were
      adjusted pursuant to Section 4.2 as a result of the Company’s 2006 2-for-1 stock
      split.]

     

    4.2           Adjustment
      for Corporate Transactions.  In the event that any stock
      dividend, extraordinary cash dividend, recapitalization, reorganization, merger,
      consolidation, split-up, spin-off, combination, exchange of shares, warrants
      or
      rights offering to purchase Stock at a price substantially below Fair Market
      Value, or other similar event affects the Stock such that an adjustment is
      required to preserve, or to prevent enlargement of, the benefits or potential
      benefits made available under the Plan, then the Board of Directors shall adjust
      the number 

     

    
      
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    and
      kind of shares which thereafter may be awarded under the Plan and the number
      of
      Units and Options and the exercise price thereof that have been, or may be,
      granted under the Plan.  Additionally, the Board of Directors may make
      provisions for a cash payment to an Eligible Director.

     

    SECTION
      5.                                UNIT
      GRANTS.

     

    5.1           Unit
      Awards.  Each Eligible Director (other than any Eligible
      Director who has received an award under the Prior Plan) who is first elected
      or
      appointed to the Board of Directors

    on
      or after the Effective Date of the Plan shall be awarded 6,000 Units on such
      date (or such other number of Units as the Board shall determine).  In
      addition, on the date of each Annual Meeting of Shareholders of the Company
      occurring after 2000 and during the term of the Plan an eligible Director
      serving as a Director on such date shall be awarded such number of Units as
      the
      Board shall determine.

     

    5.2           Delivery
      of Shares.  Subject to satisfaction of the applicable vesting
      requirements set forth in Section 6 and except as otherwise provided in Section
      8, all Shares that are subject to any Units shall be delivered to an Eligible
      Director and transferred on the books of the Company on the date which is the
      first business day of the month immediately following the termination of such
      Eligible Director’s service as a Director.  Notwithstanding the
      foregoing, an Eligible Director may elect that all or a portion of his or her
      Units shall be payable in cash as soon as practicable following the first
      business day of the month immediately following the termination of such Eligible
      Director’s service as a Director.  Any fractional Shares to be
      delivered in respect of Units shall be settled in cash based upon the Fair
      Market Value on the date any whole Shares are transferred on the books of the
      Company to the Eligible Director or the Eligible Director’s
      beneficiary.  The amount of any cash payment shall be determined by
      multiplying the number of Units and the number of Units subject to a cash
      payment election by the Fair Market Value on the last business day preceding
      the
      payment date.  Upon the delivery of a Share (or cash with respect to a
      whole or fractional Share) pursuant to the Plan, the corresponding Unit (or
      fraction thereof) shall be canceled and be of no further force or
      effect.

     

    5.3           Dividend
      Equivalents.  An Eligible Director shall have no rights as a
      shareholder of the Company with respect to any Units until Shares are delivered
      to the Director pursuant to this Section 5 hereof; provided that, each Eligible
      Director shall have the right to receive an amount equal to the dividend per
      Share for the applicable dividend payment date (which, in the case of any
      dividend distributable in property other than Shares, shall be the per Share
      value of such dividend, as determined by the Company for purposes of income
      tax
      reporting) times the number of Units held by such Eligible Director on the
      record date for the payment of such dividend (a “Dividend
      Equivalent”).  Each Eligible Director may elect, prior to any calendar
      year, whether the Dividend Equivalent is (i) payable in cash, on or as soon
      as
      practicable after each date on which dividends are paid to shareholders with
      respect to Shares; (ii) treated as reinvested in an additional number of Units
      determined by dividing (A) the cash amount of any such dividend by (B) the
      Fair
      Market Value on the related dividend payment date; or (iii) deferred and
      credited to the Eligible Director’s Interest Account pursuant to Section
      9.4.

     

    SECTION
      6.                                UNIT
      VESTING.

     

    6.1           Service
      Requirements.  Except as otherwise provided in this Section 6
      or Section 8, an Eligible Director shall vest in his or her Units as provided
      in
      this Section 6.1.  If an Eligible Director terminates service prior to
      the completion of three Years of Service as a Director, the number of Shares
      to
      be delivered to such Eligible Director in respect of Units granted upon his
      or
      her election to the Board shall equal the amount obtained by multiplying 6,000
      by a fraction, the numerator of which is the number of full months of service
      completed by such Director from the applicable date of Unit grant (counting
      any
      partial month of service as a full month) and the denominator of which is
      36.  If an Eligible Director terminates service prior to the
      completion of

    one
      Year of Service as a Director from the date of Unit grant with respect to any
      annual grant of Units made hereunder, the number of Shares to be delivered
      to
      such Eligible Director in respect of such Unit grant shall equal the amount
      obtained by multiplying the number of Units subject to such Unit grant by a
      fraction, the numerator of which is the number of full months of service
      completed by such Director from the applicable date of the Unit grant (counting
      any partial month of service as a full month) and the denominator of which
      is

     

    
      
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    12.  Notwithstanding
      the foregoing, and except as provided in Section 6.2, if the Eligible Director
      terminates service by reason of his/her death, Disability, Retirement, or
      acceptance of a position in Government Service prior to the completion of the
      period of service required to be performed to fully vest in any Unit grant,
      all
      Shares that are the subject of such Unit grant (or, if elected by the Eligible
      Director, the value thereof in cash) shall be delivered to such Eligible
      Director (or the Eligible Director’s beneficiary or estate).

    

    6.2           Six
      Months’ Minimum Service.  If an Eligible Director has
      completed less than six consecutive months of service as a Director, all Units
      held by such Eligible Director shall be immediately forfeited.  If an
      Eligible Director has completed less than six consecutive months of service
      from
      any date on which any annual grant of Units is made, all Units held by such
      Eligible Director that relate to such annual grant of units shall be immediately
      forfeited.

     

    6.3           Distribution
      on Death.  Except as provided in Section 6.2, in the event of
      the death of an Eligible Director, the Shares corresponding to such Units or,
      at
      the election of the Eligible Director’s beneficiary or estate, the Fair Market
      Value thereof in cash shall be delivered to the beneficiary designated by the
      Eligible Director on a form provided by the Company, or, in the absence of
      such
      designation, to the Eligible Director’s estate.

     

    SECTION
      7.                                STOCK
      OPTIONS.

     

    (a)  Grant.  Subject
      to the provisions of the Plan, the Board of Directors shall have the authority
      to award Options to an Eligible Director and to determine (i) the number of
      Shares to be covered by each Option, (ii) subject to Section 7(b), the exercise
      price of the Option and (iii) the conditions and limitations applicable to
      the
      exercise of the Option.

     

    (b)  Exercise
      Price.  The exercise price of an Option shall not be less than
      100% of the Fair Market Value on the date of grant.

     

    (c)  Exercise.  Each
      Option shall be exercised at such times and subject to such terms and conditions
      as the Board of Directors may specify at the time of the award of such Option
      or
      thereafter. No shares shall be delivered pursuant to any exercise of an Option
      unless arrangements satisfactory to the Board of Directors have been made to
      assure full payment of the exercise price therefor. Without limiting the
      generality of the foregoing, payment of the exercise price may be made in cash
      or its equivalent or, if and to the extent permitted by the Board of Directors
      by exchanging Shares owned by the Eligible Director (which are not the subject
      of any pledge or other security interest) either actually or by attestation,
      or
      by a combination of the foregoing, provided that the combined value of all
      cash
      and cash equivalents and the Fair Market Value of any such Shares so tendered
      to
      the Company, valued as of the date of such tender, is at least equal to such
      exercise price.

     

    (d)
      No Eligible Director shall have any rights as a shareholder with respect to
      any
      Shares to be issued pursuant to any Option under the Plan prior to the issuance
      thereof.

     

    SECTION
      8.                                CHANGE
      IN CONTROL.

     

    8.1           Immediate
      Vesting.  Upon the occurrence of a Change in Control, each
      Eligible Director’s right and interest in Units and Options which have not
      previously vested shall become vested and nonforfeitable.

     

    8.2           Cash
      Settlement.  (a) (i) Upon the occurrence of a Change in
      Control, in lieu of delivering Shares with respect to the Units then held by
      an
      Eligible Director, the Company shall pay such Eligible Director, not later
      than
      60 days after the Change in Control occurs, cash in an aggregate amount equal
      to
      the product of (x) the number of Shares that are subject to all Units credited
      to such Eligible Director at the time of the Change in Control multiplied by
      (y)
      the Fair Market Value on the date of the Change in Control.

     

    (ii)           Upon
      the occurrence of a Change in Control, the Company shall pay to each Eligible
      Director 

     

    
      
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    cash
      in an amount equal to the accrued value of such Eligible Director’s Interest
      Account.

     

    (b)           Upon
      the occurrence of a Change in Control, in lieu of delivering Shares with respect
      to each Option then held by an Eligible Director, the Company shall pay such
      Eligible Director, not later than 60 days after the Change in Control occurs,
      cash in an aggregate amount equal to the product of (i) the number of Shares
      that are subject to each Option held by such Eligible Director at the time
      of
      the Change in Control multiplied by (ii) the amount by which the Fair Market
      Value on the date of the Change of Control exceeds the exercise price of such
      Option.

     

    8.3           Definition.  “Change
      in Control” shall mean the occurrence of any of the following
      events:

     

    (i)           When
      any “person” as defined in Section 3(a)(9) of the Exchange Act and as used in
      Sections 13(d) and 14(d) thereof, including a “group” as defined in Section
      13(d) of the Exchange Act but excluding the Company and any Subsidiary thereof
      and any employee benefit plan sponsored or maintained by the Company or any
      Subsidiary (including any trustee of such plan acting as trustee), directly
      or
      indirectly, becomes the “beneficial owner” (as defined in Rule 13d-3 under the
      Exchange Act, as amended from time to time), of securities of the Company
      representing 20 percent or more of the combined voting power of the Company’s
      then outstanding securities;

     

    (ii)           When,
      during any period of 24 consecutive months the individuals who, at the beginning
      of such period, constitute the Board (the “Incumbent Directors”) cease for any
      reason other than death to constitute at least a majority thereof, provided
      that
      a Director who was not a Director at the beginning of such 24-month period
      shall
      be deemed to have satisfied such 24-month requirement (and be an Incumbent
      Director) if such Director was elected by, or on the recommendation of or with
      the approval of, at least two-thirds of the Directors who then qualified as
      Incumbent Directors either actually (because they were directors at the
      beginning of such 24-month period) or by prior operation of this Paragraph
      (ii);
      or

     

    (iii)           The
      occurrence of a transaction requiring stockholder approval for the acquisition
      of the Company by an entity other than the Company or a Subsidiary through
      purchase of assets, or by merger, or otherwise.

     

    Notwithstanding
      the foregoing, in no event shall a Change in Control be deemed to have occurred
      (i) as a result of the formation of a Holding Company, or (ii) with respect
      to a
      Director if the Director is part of a “group”, within the meaning of Section
      13(a)(3) of the Exchange Act as in effect on the effective date of the Change
      in
      Control transaction.  In addition, for purposes of the definition of
“Change in Control” a person engaged in the business as an underwriter of
      securities shall not be deemed to be a “beneficial owner” of, or to
“beneficially own”, any securities acquired through such person’s participation
      in good faith in a firm commitment underwriting until the expiration of forty
      days after the date of such acquisition.

    

    For
      purposes of this Section 8.3, the term Holding Company means an entity that
      becomes a holding company for the Company or its business as part of any
      reorganization, merger, consolidation or other transaction, provided that the
      outstanding shares of common stock of such entity and the combined voting power
      of the then outstanding voting securities of such entity entitled to vote
      generally in the election of directors is, immediately after such
      reorganization, merger, consolidation or other transaction, beneficially owned,
      directly or indirectly, by all or substantially all of the individuals and
      entities who were the beneficial owners of the outstanding shares of Common
      Stock and the combined voting power of the outstanding voting securities,
      respectively, of the Company immediately prior to such reorganization, merger,
      consolidation or other transaction in substantially the same proportions as
      their ownership, immediately prior to such reorganization, merger, consolidation
      or other transaction, of such outstanding voting stock.

    

    SECTION
      9.                                DEFERRED
      COMPENSATION PROGRAM.

     

    9.1           Election
      to Defer.  On or before December 31 of any calendar year, an
      Eligible Director may 

     

    
      
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    elect
      to defer receipt of all or any part of any Compensation payable in respect
      of
      the calendar year following the year in which such election is made, and to
      have
      such amounts credited, in whole or in part, to a Stock Unit Account or an
      Interest Account.  Any person who shall become an Eligible Director
      during any calendar year may elect, not later than the 30th day after
      his or
      her term as a Director begins, to defer payment of all or any part of his or
      her
      Compensation payable for the portion of such calendar year following such
      election.

     

    9.2           Method
      of Election.  A deferral election shall be made by written
      notice filed with the Corporate Secretary of the Company.  Such
      election shall continue in effect (including with respect to Compensation
      payable for subsequent calendar years) unless and until the Eligible Director
      revokes or modifies such election by written notice filed with the Corporate
      Secretary of the Company.  Any such revocation or modification of a
      deferral election shall become effective as of the end of the calendar year
      in
      which such notice is given and only with respect to Compensation payable for
      services rendered thereafter. Amounts credited to the Eligible Director’s Stock
      Unit Account prior to the effective date of any such revocation or modification
      of a deferral election shall not be affected by such revocation or modification
      and shall be distributed only in accordance with the otherwise applicable terms
      of the Plan.  An Eligible Director who has revoked an election to
      participate in the Plan may file a new election to defer Compensation payable
      for services to be rendered in the calendar year following the year in which
      such election is filed.

     

    9.3           Investment
      Election.  At the time an Eligible Director elects to defer
      receipt of Compensation pursuant to Section 9.1, the Eligible Director shall
      designate in writing the portion of such Compensation, stated as a whole
      percentage, to be credited to the Interest Account (or such other account as
      may
      be established from time to time by the Committee) and the portion to be
      credited to the Stock Unit Account.  If an Eligible Director fails to
      notify the Corporate Secretary as to how to allocate any Compensation between
      the Accounts, 100% of such Compensation shall be credited to the Interest
      Account.  By written notice to the Corporate Secretary of the Company,
      an Eligible Director may change the manner in which the Compensation payable
      with respect to services rendered after the end of such calendar year are
      allocated among the Accounts.

     

    9.4           Dividend
      Equivalents.  In addition to the deferral of Compensation
      permitted under Section 9.1, an Eligible Director may elect, in the manner
      and
      at the time described in Section 5.3, to have Dividend Equivalents payable
      in
      respect of his or her Units credited to his or her Interest Account in the
      manner and at the time described in such Section 5.3.

     

    9.5           Interest
      Account.  Any Compensation allocated to the Interest Account
      shall be credited to the Interest Account as of the date such Fees would have
      been paid to the Eligible Director.  Any amounts credited to the
      Interest Account shall be credited with interest at the same rate and in the
      manner in which interest is credited under the Fixed Investment Fund (or, if
      such fund no longer exists, the fund with the investment criteria most clearly
      comparable to that of such Fund) under the Aetna Inc. Incentive Savings Plan
      (or
      any successor thereto).

     

    9.6           Stock
      Unit Account.  Any Compensation allocated to the Stock Unit
      Account shall be deemed to be invested in a number of Units equal to the
      quotient of (i) such Compensation divided by (ii) the Fair Market Value on
      the
      date the Fees then being allocated to the Stock Unit Account would otherwise
      have been paid.  Fractional Units shall be credited, but shall be
      rounded to the nearest hundredth percentile, with amounts equal to or greater
      than .005 rounded up and amounts less than .005 rounded
      down.  Whenever a dividend other than a

    dividend
      payable in the form of Shares is declared with respect to the Shares, the number
      of Units in the Eligible Director’s Stock Unit Account shall be increased by the
      number of Units

    determined
      by dividing (i) the product of (A) the number of Units in the Eligible
      Director’s Stock Unit Account on the related dividend record date, and (B) the
      amount of any cash dividend declared by the Company on a Share (or, in the
      case
      of any dividend distributable in property other than Shares, the per share
      value
      of such dividend, as determined by the Company for purposes of income tax
      reporting), by (ii) the Fair Market Value on the related dividend payment
      date.  In the case of any dividend declared on Shares which is payable
      in Shares, the Eligible Director’s Stock Unit Account shall be increased by the
      number of Units equal to the product of (i) the number of Units credited to
      the
      Eligible Director’s Stock Unit Account on the related dividend record date, and
      (ii) the 

     

    
      
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    number
      of Shares (including any fraction thereof) distributable as a dividend on a
      Share.

     

    9.7           Distribution
      Election.  At the time an Eligible Director makes a deferral
      election pursuant to Section 9.1, the Eligible Director shall also file with
      the
      Corporate Secretary of the Company a written election ( a “Distribution
      Election”) with respect to whether:

     

    (i)
      the aggregate amount, if any, credited to the Interest Account at any time
      and
      the value of any Units credited to the Stock Unit Account shall be distributed
      in cash, in Shares or in a combination thereof at the election of the
      Director;

     

    (ii)
      such distribution shall commence as soon as practicable following the first
      business day of the calendar month following the date the Eligible Director
      ceases to be a Director or on the first business day of any calendar year
      following the calendar year in which the Eligible Director ceases to be a
      Director; and

     

    (iii)
      such distribution shall be in one lump sum payment or in such number of annual
      installments (not to exceed ten) as the Eligible Director may
      designate.

     

    The
      amount of any installment payment shall be determined by multiplying the amount
      credited to the Accounts of an Eligible Director immediately prior to the
      distribution by a fraction, the numerator of which is one and the denominator
      of
      which is the number of installments (including the current installment)
      remaining to be paid.  An Eligible Director may at any time, and from
      time to time, change any Distribution Election applicable to his or her
      Accounts, provided that no election to change the timing of any final
      distribution shall be effective unless it is made in writing and received by
      the
      Corporate Secretary of the Company at least one full calendar year prior to
      the
      time at which the Eligible Director ceases to be a director.

     

    9.8           Financial
      Hardship Withdrawal.  Any Eligible Director may, after
      submission of a written request to the Corporate Secretary of the Company and
      such written evidence of the Eligible Director’s financial condition as the
      Committee may reasonably request, withdraw from his Interest Account up to
      such
      amount as the Committee shall determine to be necessary to alleviate the
      Eligible Director’s financial hardship.

     

    9.9           Timing
      and Form of Distributions.  Any distribution to be made
      hereunder, whether in the form of a lump sum payment or installments, following
      the termination of an Eligible Director’s service as a Director shall commence
      in accordance with the Distribution Election made by the Eligible Director
      pursuant to Section 9.7.  If an Eligible Director fails to specify a
      form of payment for a distribution in accordance with Section 9.7, the
      distribution from the Interest Account shall be made in cash and the
      distribution from the Stock Unit Account shall be made in Shares.  If
      an Eligible Director fails to specify in accordance with Section 9.7 a
      commencement date for a distribution or whether such distribution shall be
      made
      in a lump sum payment or a number of installments, such distribution shall
      be
      made in a lump sum payment and commence on the first business day of the month
      immediately following the date on which the Eligible Director ceases to be
      a
      Director.  In the case of any distribution being made in annual
      installments, each installment after the first installment shall be paid on
      the
      first business day of

    each
      subsequent calendar year, or as soon as practical thereafter, until the entire
      amount subject to such Distribution Election shall have been paid.

     

    9.10           Effect
      on Prior Plan.  Subject to approval of the Company’s sole
      shareholder and the consummation of the transactions contemplated by the Merger
      Agreement, the amounts standing to the credit of each Eligible Director’s stock
      unit account under the Prior Plan shall be transferred to the Plan and credited
      to the Eligible Director’s Stock Unit Account.  Any elections in
      effect under such Prior Plan shall be deemed to be an election made pursuant
      to
      and in accordance with the terms of this Section 9 unless and until the Eligible
      Director elects to change such elections in accordance with the provisions
      of
      this Section 9.

     

    SECTION
      10.                                UNFUNDED
      STATUS.

    
       

      
        Page
          8

        
          

        

      

      
        
        

      

    

     

    The
      Company shall be under no obligation to establish a fund or reserve in order
      to
      pay the benefits under the Plan.  A Unit represents a contractual
      obligation of the Company to deliver Shares or pay cash to a Director as
      provided herein.  The Company has not segregated or earmarked any
      Shares or any of the Company’s assets for the benefit of a Director or his/her
      beneficiary or estate, and the Plan does not, and shall not be construed to,
      require the Company to do so.  The Director and his/her beneficiary or
      estate shall have only an unsecured, contractual right against the Company
      with
      respect to any Units granted or amounts credited to a Director’s Accounts
      hereunder, and such right shall not be deemed superior to the right of any
      other
      creditor.  Units shall not be deemed to constitute options or rights
      to purchase Stock.

     

    

     

    SECTION
      11.                                AMENDMENT
      AND TERMINATION.

     

    The
      Plan may be amended at any time by the Board of Directors, provided that, except
      as provided in Section 4.2, the Board of Directors may not, without approval
      of
      the shareholders of the Company increase the number of Shares which may be
      awarded under the Plan.  The Plan shall terminate on April 30,
      2010.  Notwithstanding the foregoing, no amendment or termination of
      the Plan shall materially and adversely affect any rights of any Director under
      any Grant made pursuant to the Plan.  Unless the Board otherwise
      specifies at the time of such termination, a termination of the Plan will not
      result in the distribution of the amounts credited to an Eligible Director’s
      Accounts.

     

    SECTION
      12.                                OTHER
      STOCK-BASED AWARDS.

     

    The
      Board of Directors shall have authority to grant to Eligible Directors an “Other
      Stock-Based Award”, which shall consist of any right which is (i) not a Grant
      described in Sections 5 or 7 above and (ii) a Grant of Shares or a Grant
      denominated or payable in, valued in whole or in part by reference to, or
      otherwise based on or related to, Shares (including, without limitation,
      securities convertible into Shares ), as deemed by the Board of Directors to
      be
      consistent with the purposes of the Plan; provided that any such rights
      must comply, to the extent deemed desirable by the Board of Directors, with
      Rule
      16b-3 and applicable law. Subject to the terms of the Plan and any applicable
      award agreement, the Board of Directors shall determine the terms and conditions
      of any such Other Stock-Based Award.

     

    SECTION
      13.                                GENERAL
      PROVISIONS.

     

    13.1           No
      Right to Serve as a Director.  This Plan shall not impose any
      obligations on the Company to retain any Eligible Director as a Director nor
      shall it impose any obligation on the part of any Eligible Director to remain
      as
      a Director of the Company.

     

    13.2           Construction
      of the Plan.  The validity, construction, interpretation,
      administration and effect of the Plan, and the rights relating to the Plan,
      shall be determined solely in accordance with the laws of the State of
      Connecticut.

     

    13.3           No
      Right to Particular Assets.  Nothing contained in this Plan
      and no action taken pursuant to this Plan shall create or be construed to create
      a trust of any kind or any fiduciary relationship between the Company and any
      Eligible Director, the executor, administrator or other personal representative
      or designated beneficiary of such Eligible Director, or any other
      persons.  Any reserves that may be established by the Company in
      connection with Units granted under this Plan shall continue to be treated
      as
      the assets of the Company for federal income tax purposes and remain subject
      to
      the claims of the Company’s creditors.  To the extent that any
      Eligible Director or the executor, administrator, or other personal
      representative of such Eligible Director, acquires a right to receive any
      payment from the Company pursuant to this Plan, such right shall be no greater
      than the right of an unsecured general creditor of the Company.

     

    13.4           Listing
      of Shares and Related Matters.  If at any time the Board of
      Directors shall determine 

     

    
      
        Page
          9

        
          

        

      

      
        
        

      

    

     

    in
      its discretion that listing, registration or qualification of the Shares covered
      by this Plan upon any national securities exchange or under any state or federal
      law, or the consent or approval of any governmental regulatory body, is
      necessary or desirable as a condition of, or in connection with, the delivery
      of
      Shares under this Plan, no Shares will be delivered unless and until such
      listing, registration, qualification, consent or approval shall have been
      effected or obtained, or otherwise provided for, free of any conditions not
      acceptable to the Board of Directors.

     

    13.5           Severability
      of Provisions.  If any provision of this Plan shall be held
      invalid or unenforceable, such invalidity or unenforceability shall not effect
      any other provisions hereof, and this Plan shall be construed and enforced
      as if
      such provision had not been included.

     

    13.6           Incapacity.  Any
      benefit payable to or for the benefit of a minor, an incompetent person or
      other
      person incapable of receipting therefor shall be deemed paid when paid to such
      person’s guardian or to the party providing or reasonably appearing to provide
      for the care of such person, and such payment shall fully discharge any
      liability or obligation of the Board of Directors, the Company and all other
      parties with respect thereto.

     

    

     

    13.7           Nontransferability.  No
      Grant may be assigned or transferred, in whole or in part, either directly
      or by
      operation of law (except in the event of an Eligible Director’s death by will or
      applicable laws of descent and distribution), including, but not by way of
      limitation, by execution, levy, garnishment, attachment, pledge, bankruptcy
      or
      in any other manner, and no such right or interest of any Eligible Director
      in
      the Plan shall be subject to any obligation or liability of such Eligible
      Director.

     

    13.8           Headings
      and Captions.  The headings and captions herein are provided
      for reference and convenience only, shall not be considered part of this Plan,
      and shall not be employed in the construction of this Plan.

     

    
      
        
        

      

      
        Page
          10Exhibit 4.3

    
      

    

    

    ELECTRONIC
      CLEARING HOUSE, INC.

     

    AND

     

    OTR,
      INC.

     

    AMENDMENT
      NUMBER THREE TO

    

    AMENDED
      AND RESTATED RIGHTS AGREEMENT

     

    APRIL
      24, 2007

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    AMENDMENT
      NUMBER THREE TO

    AMENDED
      AND RESTATED RIGHTS AGREEMENT

    

    This
      Amendment Number Three to Amended and Restated Rights Agreement (this
“Third Amendment”)
      is
      made and entered into as of the 24th day of April, 2007, by and between
      Electronic Clearing House, Inc., a Nevada corporation (“Company”),
      and
      OTR, Inc., an Oregon corporation (“Rights
      Agent”).

    

    RECITALS

    

    A.    Pursuant
      to that certain Rights Agreement dated September 30, 1996, by and between the
      Company and the Rights Agent (the “Original
      Agreement”),
      the
      Board of Directors of the Company authorized, declared and distributed a
      dividend of one preferred share purchase right (“Right”)
      for
      each share of Common Stock of the Company outstanding on September 30, 1996
      (“Record
      Date”),
      each
      Right representing the right to purchase four one-hundredths of a Preferred
      Stock share, and further authorized and directed the issuance of one Right
      with
      respect to each Common Stock share that has or will become outstanding between
      the Record Date and the earliest of the Distribution Date, the Redemption Date
      and the Final Expiration Date.

    

    B.    
On
      January 29, 2003, the Company and the Rights Agent entered into an Amended
      and
      Restated Rights Agreement (the “Amended
      Agreement”)
      that
      completely amended and restated the Original Agreement to, among other matters,
      clarify the effects on each Right of (i) dividends payable in common stock
      and
      (ii) subdivisions, combinations or consolidations of Common Stock as the same
      have been declared and implemented by the Company prior to January 29, 2003.
      Capitalized terms used but not otherwise defined herein shall have the meanings
      ascribed to such terms in the Amended Agreement.

    

    C.    
Concurrent
      with the execution of the Amended Agreement, the Board of Directors of the
      Company authorized and declared, and distributed as of January 29, 2003, a
      second dividend of one preferred share purchase right (the “Second
      Right”)
      for
      each share of Common Stock of the Company outstanding on January 29, 2003,
      each
      Second Right representing the right to purchase four one-hundredths of a
      Preferred Stock share, upon the terms and subject to the conditions set forth
      in
      the Amended Agreement, and further authorized and directed the issuance of
      one
      Second Right with respect to each Common Stock share that has or will become
      outstanding between January 29, 2003 and the earliest of the Distribution Date,
      the Redemption Date and the Final Expiration Date.

    

    D.    
On
      September 27, 2004, the Company and the Rights Agent entered into an Amendment
      Number One to Amended and Restated Rights Agreement (the “Amendment”)
      to,
      among other matters, amend the purchase price of each individual Right and
      Second Right such that each Right and Second Right would have a similar economic
      effect as was intended for such Right and Second Right under the Amended
      Agreement.

    

    E.    
On
      December 14, 2006, the Company and the Rights Agent entered into an Amendment
      Number Two to Amended and Restated Rights Agreement (the “Second
      Amendment”)
      to,
      among other matters, revise the definition of “Acquiring Person” to exempt
      Intuit Inc., a Delaware corporation (“Intuit”)
      therefrom.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    F.    
The
      Board
      of Directors of the Company has determined that it is in the best interests
      of
      the Company and its shareholders to amend the Amended Agreement (as amended),
      including all applicable sections, to revise the definition of “Acquiring
      Person” to remove the exemption of Intuit therefrom.

    

    G.    
Pursuant
      to Section 27 of the Amended Agreement, the Board of Directors has the power
      and
      authority to direct the amendment of the Amended Agreement (as amended) by
      the
      Company and the Rights Agent, such amendment to be evidenced by a writing signed
      by both parties.

    

    Accordingly,
      in consideration of the premises and the mutual agreements herein set forth,
      the
      parties hereby agree as follows:

    

    1.    
Amendment
      to Section 1(a).
      Section
      1(a) of the Amended Agreement is hereby amended and restated to read in its
      entirety as follows:

    

    “(a)
      "Acquiring Person" shall mean any Person (as such term is hereinafter defined)
      who or which, together with all Affiliates and Associates (as such terms are
      hereinafter defined) of such Person, shall be the Beneficial Owner (as such
      term
      is hereinafter defined) of twenty-percent (20%) or more of the Common Stock
      of
      the Company then outstanding, but shall not include the (i) Company, (ii) any
      Subsidiary (as such term is hereinafter defined) of the Company, and (iii)
      any
      employee benefit plan of the Company or of any Subsidiary of the Company, or
      of
      any entity holding Common Stock for or pursuant to the terms of any such plan,
      provided, however, that if a Person is the Beneficial Owner at the close of
      business on the date of this Agreement of twenty-percent (20%) or more of the
      Common Stock of the Company, such Person shall not be deemed an Acquiring Person
      unless and until such Person acquires any additional Common Stock in any manner
      other than pursuant to a stock dividend, stock split, recapitalization, or
      similar transaction that does not affect the percentage of outstanding Common
      Stock. Notwithstanding the foregoing, no Person shall become an "Acquiring
      Person" as the result of an acquisition of Common Stock by the Company which,
      by
      reducing the number of shares outstanding, increases the proportionate number
      of
      shares beneficially owned by such Person to twenty-percent (20%) or more of
      the
      Common Stock of the Company then outstanding; provided, however, that if a
      Person shall become the Beneficial Owner of twenty-percent (20%) or more of
      the
      Common Stock of the Company then outstanding by reason of share purchases by
      the
      Company and shall, after such share purchases by the Company, become the
      Beneficial Owner of any additional Common Stock of the Company, then such Person
      shall be deemed to be an "Acquiring Person." Notwithstanding the foregoing,
      if a
      majority of the Board of Directors then in office determines in good faith
      that
      a Person who should be an "Acquiring Person," as defined pursuant to the
      foregoing provisions of this paragraph (a), has become such inadvertently,
      and
      such Person divests as promptly as practicable a sufficient number of shares
      of
      Common Stock so that such Person would no longer be an Acquiring Person, as
      defined pursuant to the foregoing provisions of this paragraph (a), then such
      a
      Person shall not be deemed to be an "Acquiring Person" for any purposes to
      this
      Agreement.”

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    2.    
Amendment
      to Section 3(a). Section
      3(a) of the Amended Agreement is hereby amended and restated to read in its
      entirety as follows:

    

    “(a)
      Until the earlier of the close of business on (i) the tenth day after the Stock
      Acquisition Date, or (ii) the tenth Business Day (or such later date as may
      be
      determined by action of the Board of Directors prior to such time as any Person
      becomes an Acquiring Person) after the date of the commencement by any Person
      (other than the Company, any Subsidiary of the Company, any employee benefit
      plan of the Company or of any Subsidiary of the Company or any entity holding
      Common Stock for or pursuant to the terms of any such plan) of, or of the first
      public announcement of the intention of any Person (other than the Company,
      any
      Subsidiary of the Company, any employee benefit plan of the Company or of any
      Subsidiary of the Company or any entity holding Common Stock for or pursuant
      to
      the terms of any such plan) to commence, a tender or exchange offer the
      consummation of which would result in any Person becoming the Beneficial Owner
      of Common Stock aggregating twenty-percent (20%) or more of the then outstanding
      Common Stock, irrespective of whether any shares of Common Stock are actually
      purchased pursuant to such offer (including any such date which is after the
      Record Date (with respect to Rights) and the Effective Date (with respect to
      Second Rights) and prior to the issuance of the Rights or the Second Rights,
      as
      the case may be, the earliest of such dates being herein referred to as the
      "Distribution Date"), (x) the Rights/Second Rights will be evidenced, subject
      to
      the provisions of Section 3(b) hereof, by the certificates for Common Stock
      registered in the names of the holders thereof (which certificates shall also
      be
      deemed to be Rights Certificates) and not be separate Rights Certificates,
      and
      (y) the right to receive Rights Certificates will be transferable only in
      connection with the transfer of Common Stock. As soon as practicable after
      the
      Distribution Date, the Company will prepare and execute, the Rights Agent will
      countersign, and the Company will send or cause to be sent (and the Rights
      Agent
      will, if requested, send) by first-class, insured, postage-prepaid mail, to
      each
      record holder of Common Stock as of the close of business on the Distribution
      Date, at the address of such holder shown on the records of the Company, a
      Rights Certificate, in substantially the form of Exhibit B attached hereto
      ("Rights Certificate"), evidencing one Right or Second Right, as the case may
      be, for each Common Stock share so held. As of the Distribution Date, the Rights
      and Second Rights will be evidenced solely by such Rights
      Certificates.”

    

    3.    
Amendment
      to Section 24(a).
      Section
      24(a) of the Amended Agreement is hereby amended and restated to read in its
      entirety as follows:

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “(a)
      The
      Board of Directors of the Company may, at its option, at any time after any
      Person becomes an Acquiring Person, exchange all or part of the then outstanding
      and exercisable Rights and Second Rights, which shall not include Rights or
      Second Rights that have become void pursuant to the provisions of Section
      11(a)(ii) hereof, for Common Stock at an exchange ratio of one Common Stock
      share per Right or per Second Right, as the case may be, appropriately adjusted
      to reflect any stock split, stock dividend or similar transaction occurring
      after the date hereof, such exchange ratio being hereinafter referred to as
      the
      "Exchange Ratio." Notwithstanding the foregoing, the Board of Directors shall
      not be empowered to effect such exchange at any time after any Person (other
      than the Company, any Subsidiary of the Company, any employee benefit plan
      of
      the Company or of any such Subsidiary, or of any entity holding Common Stock
      for
      or pursuant to the terms of any such plan), together with all Affiliates and
      Associates of such Person, becomes the Beneficial Owner of 50% or more of the
      Common Stock then outstanding.”

    

    4.    
Ratification
      of Amended Agreement.
      Except
      as expressly amended or modified herein, all terms and conditions of the Amended
      Agreement and the Amendment are hereby ratified, confirmed and approved and
      shall remain in full force and effect. In the event of any conflict or
      inconsistency between this Third Amendment, on the one hand, and the Amended
      Agreement, the Amendment and the Second Amendment, on the other hand, this
      Third
      Amendment shall govern.

     

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Third Amendment as of
      the
      date first set forth above.

     

    
      	
              ELECTRONIC
                CLEARING HOUSE, INC.

            	 	
              OTR,
                INC.

            	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
              By:  

            	
              /s/
                Joel M. Barry

            	 	
              By:

            	
              /s/
                Robert E. Roach

            	 
	 	
              JOEL
                M. BARRY

            	 	
              Name: 
                

            	
              Robert
                E. Roach

            	 
	 	
              Chairman
                of the Board and

            	 	
              Title:

            	
              Vice
                President

            	 
	 	
              Chief
                Executive Officer

            	 	 	 	 

    

     

     

    6

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