Document:

ex10-10.htm

    
      
        

      

      EXHIBIT
10.10

      

        

      

      AETNA
INC.

      2000
STOCK INCENTIVE PLAN

      

      PERFORMANCE
STOCK UNIT TERMS OF AWARD

      

      Performance
Period January 1, 2008 through December 31, 2009

      

      

      Pursuant
to its 2000 Stock Incentive Plan (the "Plan"), Aetna Inc. (the "Company") hereby
grants Performance Stock Units on the terms and conditions hereinafter set
forth.  The number of Performance Stock Units awarded is included in
the website of the designated broker, currently UBS Financial Services, Inc.,
and in the Notice of the Performance Stock Unit Grant Acknowledgement and
Acceptance Form.  All capitalized terms used herein which are not
otherwise defined herein shall have the meaning specified in the
Plan.

      

       

      ARTICLE
I

       

      DEFINITIONS

      

      
        	
                (a)

              	
                “Affiliate"
      means an entity at least a majority of the total voting power of the
      then-outstanding voting securities of which is held, directly or
      indirectly, by the Company and/or one or more other
      Affiliates.

              

      

      

      
        	
                (b)

              	
                 "Board"
      means the Board of Directors of Aetna
Inc.

              

      

      

      (c)        "Change
in Control" means the happening of any of the following:

      

      
        	
                (i)  

              	
                When
      any "person" as defined in Section 3(a)(9) of the Securities Exchange Act
      of 1934, as amended (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

              

      

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                (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 Grantee, if Grantee is part of a “group,” within the
      meaning of Section 13(d)(3) of the Exchange Act as in effect on the
      effective date, which consummates the Change in Control
      transaction.  In addition, for purposes of the definition of
      “Change in Control” a person engaged in business as an underwriter of
      securities shall not be deemed to be the “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.

              

      

      

      
        	
                (d)

              	
                "Committee"
      means the Board's Committee on Compensation and Organization or any
      successor thereto.

              

      

      

      
        	
                (e)

              	
                "Common
      Stock" means the Company's Common Shares, $.01 par value per
      share.

              

      

      

      
        	
                (f)

              	
                "Company"
      means Aetna Inc.

              

      

      

      
        	
                (g)

              	
                "Effective
      Date" means the date of grant of this award of Performance Stock
      Units.

              

      

      

      
        	
                (h)

              	
                “Fair
      Market Value" means the closing price of the Common Stock as reported by
      the Consolidated Tape of the New York Stock Exchange Listed Shares on the
      date such value is to be determined, or, if no shares were traded on such
      date, on the next day on which the Common Stock is
  traded.

              

      

      

      
        	
                (i)

              	
                “Fundamental
      Corporate Event” shall mean any stock dividend, extraordinary cash
      dividend, recapitalization, reorganization, merger, consolidation,
      split-up, spin-off, combination, exchange of shares, warrants or rights
      offering to purchase Common Stock at a price substantially below fair
      market value, or similar event.

              

      

      

      
        	
                (j)

              	
                "Grantee"
      means the person to whom this award has been
  granted.

              

      

      

      
        	
                (k)

              	
                “Holding
      Company” means an entity that becomes a holding company for the Company or
      its businesses as a 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, respectively, of the voting stock outstanding
      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.

              

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      
        	
                (l)

              	
                "Long
      Term Disability" means long-term disability as defined under the terms of
      the Company's applicable long-term disability plans or
      policies.

              

      

      

      
        	
                (m)

              	
                “Net
      Shares” means the number of shares of Common Stock which will be deposited
      in a brokerage account in the Grantee’s name at the Company’s designated
      broker after shares have been withheld to satisfy applicable tax and
      withholding requirements upon vesting of the Performance Stock
      Units.

              

      

      

      
        	
                (n)

              	
                “Performance
      Period” means the two-year period ending December 31,
  2009.

              

      

      

      
        	
                (o)

              	
                “Performance
      Stock Units” means the number of shares of Common Stock represented by the
      number of units awarded or such other amount as may result by operation of
      Article III of this Agreement.

              

      

      

      
        	
                (p)

              	
                “Plan”
      means the Aetna Inc. 2000 Stock Incentive
Plan.

              

      

      

      
        	
                (q)

              	
                "Retirement"
      means the termination of employment of a Grantee from active service with
      the Company, a Subsidiary or Affiliate provided the Grantee’s age and
      completed years of service total 65 or more points at termination of
      employment.

              

      

      

      
        	
                (r)

              	
                “Shares
      of Stock” or “Stock” means the Common
Stock.

              

      

      

      
        	
                (s)

              	
                "Subsidiary"
      means an entity of which, at the time such subsidiary status is to be
      determined, at least 50% of the total combined voting power of all classes
      of stock of such entity is held by the Company and/or one or more other
      subsidiaries.

              

      

      

      
        	
                (t)

              	
                "Successor"
      means the legal representative of the estate of a deceased Grantee or the
      person or persons who shall acquire the right to the Performance Stock
      Units by bequest or inheritance or by reason of the death of the
      Grantee.

              

      

      

      
        	
                (u)

              	
                “Vest
      Date” means the date on which the Committee determines that the
      performance goal established for the Performance Period has been achieved
      in accordance with the terms of this Agreement, if at
  all.

              

      

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      ARTICLE
II

      

      PERFORMANCE
PERIOD

      

      Subject
to the terms of this Agreement, the Performance Stock Units will vest, as of the
Vest Date, in accordance with the terms of the Plan and this Terms of Award
Agreement, or on such earlier date as provided in Article IV.  If the
Committee determines that the performance goal set forth on Exhibit A is met, on
the Vest Date the Grantee shall vest to one share of Common Stock for each
vested Performance Stock Unit net of applicable taxes and withholding (or such
greater or lessor amount based on performance, as set forth on Exhibit
A).  Such Net Shares will be delivered to the Company’s designated
broker, in a brokerage account established in the Grantee’s name, as soon as
administratively possible after the Vest Date.  If the Committee
determines that the performance goal set forth on Exhibit A is not met at the
minimum level, no shares will vest.

      

      Any
social security calculation or other adjustments discovered after the payment of
Net Shares will be settled in cash not in Common Stock.

      

      

      ARTICLE
III

      

      CAPITAL
CHANGES

      

      In the
event that the Committee shall determine that any Fundamental Corporate Event
affects the Common Stock such that an adjustment is required to preserve, or to
prevent enlargement of, the benefits or potential benefits made available under
this Plan, then the Committee shall, in such manner as the Committee may deem
equitable, adjust the number and kind of shares subject to the award of
Performance  Stock Units.  Additionally, the Committee may
make provision for cash payment to a Grantee or the Successor of the
Grantee.  However, the number of  Performance Stock Units
shall always be a whole number.

      

      ARTICLE
IV

      

      CHANGE
IN CONTROL

      

      Notwithstanding
any other provision of this Agreement to the contrary, upon the occurrence of a
Change in Control, the Performance Stock Units not previously forfeited pursuant
to this Terms of Award Agreement shall become immediately vested at a level
which equals the greater of the number of Performance Stock Units that would
have vested (x) at target-level 100% vesting, or (y) based on the Company’s
actual performance level using the date on which the Change in Control occurs as
the end of the Performance Period.  Net Shares shall be delivered as
of the date of the Change in Control.  If an award is deferred
pursuant to Article VII(i), the Change in Control will not accelerate the
payment of the deferred Performance Stock Units unless the Change in Control
meets the definition of change in control set forth in Treasury Regulation
Section 1.409A-3(i)(5).

      

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      ARTICLE
V

      

      TERMINATION
OF EMPLOYMENT

      

      
        	
                 
      

              	 

      

      
        	
                (a)

              	
                Except
      as provided in (c) below, if, during the Performance Period, Grantee shall
      cease to be employed by the Company, its Subsidiaries or Affiliates, for
      reason of death, Long-term Disability, Retirement or involuntary
      termination of employment by the Company, the portion of the Performance
      Stock Units that may vest on the Vest Date, if any, shall be calculated in
      accordance with the following formula:  (i) the number of
      completed days employed after the Effective Date divided by 731;
      multiplied by (ii) the number of Performance Stock Units, that otherwise
      would have vested.

              

      

      

      
        	
                (b)

              	
                Except
      as provided in (a) above, any Performance Stock Unit not vested as of the
      date Grantee terminates employment shall be forfeited at the time of
      cessation of employment; provided, however, that if Grantee’s employment
      is terminated by the Company other than for cause and Grantee has not
      previously, or does not subsequently, vest to any portion of the
      Performance Stock Unit in accordance with its terms, then upon the
      forfeiture of the entire Performance Stock Unit, the Company will pay
      Grantee an amount equal to the value of a single share of Common Stock,
      whether or not the forfeited Performance Stock Unit related to more than a
      single share of Common Stock, calculated as of the cessation of
      employment, if requested by Grantee, within 30 days of such cessation of
      employment.

              

      

      
        	
                 
      

              	 

      

      
        	
                (c)

              	
                No
      Performance Stock Unit will vest after the Company has terminated the
      employment of the Grantee for cause, unless the Committee, in its sole
      discretion, deems a payment to be warranted under the particular
      circumstances.  In addition, the Performance Stock Units will
      not vest if Grantee if Grantee has willfully engaged in gross misconduct
      or other serious impropriety which the Company determines is likely to be
      damaging or detrimental to the Company, any Subsidiary or
      Affiliate.

              

      

      
        	
                 
      

              	 

      

      
        	
                (d)

              	
                Employment
      for purposes of determining the vesting rights of the Grantee and the
      expiration of the grant under this Article V shall mean continuous active
      full-time salaried employment with the Company, a Subsidiary or an
      Affiliate, except that the period during which the Grantee is on vacation,
      sick leave, or other pre-approved leave of absence (provided there is no
      actual termination of employment), shall not interrupt the continuous
      employment of the Grantee.  Notwithstanding any period during
      which Grantee receives salary continuation or severance shall not be
      considered as part of the continuous employment of the
      Grantee.

              

      

      
        	
                 
      

              	 

      

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      ARTICLE
VI

      

      EMPLOYEE
COVENANTS

      

      
        	
                (a)

              	
                As
      consideration for this grant of Performance Stock Units, without prior
      written consent of the Company:

              

      

      

      
        	
                 
      

              	 	
                (i) 
      

              	
                Grantee
      will not (except to the extent required by an order of a court having
      competent jurisdiction or under subpoena from an appropriate government
      agency) use or disclose to any third person, whether during or subsequent
      to Grantee’s employment, any trade secrets, confidential information and
      proprietary materials, which may include, but are not limited to, the
      following categories of information and materials: customer lists and
      identities; provider lists and identities; employee lists and identities;
      product development and related information; marketing plans and related
      information; sales plans and related information; premium or other pricing
      information; operating policies and manuals; research; payment rates;
      methodologies; procedures; contractual forms; business plans; financial
      records; computer programs; database; or other financial, commercial,
      business or technical information related to the Company or any Subsidiary
      or Affiliate unless such information has been previously disclosed to the
      public by the Company or has become public knowledge other than by a
      breach of this Agreement; provided, however, that this limitation shall
      not apply to any such use or disclosure made while Grantee is employed by
      the Company, any Subsidiary or Affiliate if such disclosure occurred in
      connection with the performance of Grantee’s job as an employee of the
      Company, any Subsidiary or
Affiliate;

              

      

      

      
        	
                 
      

              	 	
                (ii) 
      

              	
                Grantee
      will not, during and for a period of 12 months or 24 months for executive
      tier employees (the executive tier status determined as of the effective
      date of this grant) following Grantee’s termination of Employment,
      directly or indirectly induce or attempt to induce any employee to be
      employed by or to perform services
elsewhere;

              

      

      
        	
                 
      

              	 

      

      
        	
                 
      

              	 	
                (iii) 
      

              	
                Grantee
      will not, during and for a period of 12 months or 24 months for executive
      tier employees (the executive tier status determined as of the effective
      date of this grant) following Grantee's termination of Employment,
      directly or indirectly, induce or attempt to induce any agent or agency,
      broker, supplier or health care provider of the Company or any Subsidiary
      to cease or curtail providing services to the Company or any Subsidiary;
      and

              

      

      

      
        	
                 
      

              	 	
                (iv) 
      

              	
                Grantee
      will not, during and for a period of 12 months or 24 months for executive
      tier employees (the executive tier status determined as of the effective
      date of this grant) following Grantee’s termination of Employment,
      directly or indirectly solicit or attempt to solicit the trade of any
      individual or entity which, at the time of such solicitation, is a
      customer of the Company, any Subsidiary or Affiliate, or which the
      Company, any Subsidiary or Affiliate is undertaking reasonable steps to
      procure as a customer at the time of or immediately preceding termination
      of Employment; provided, however, that this limitation shall only apply to
      any product or service which is in competition with a product or service
      of the Company, any Subsidiary or Affiliate and shall apply only with
      respect to a customer or prospective customer with whom the Grantee has
      been directly or indirectly
involved.

              

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                In
      addition:

              

      

      

      
        	
                (v)  

              	
                Following
      the termination of Grantee’s Employment, Grantee shall provide assistance
      to and shall cooperate with the Company or a Subsidiary or Affiliate, upon
      its reasonable request and without additional compensation, with respect
      to matters within the scope of Grantee’s duties and responsibilities
      during Employment, provided that any reasonable out-of-pocket expenses
      Grantee incurs in connection with any assistance Grantee has been
      requested to provide under this provision for items including, but not
      limited to, transportation, meals, lodging and telephone, shall be
      reimbursed by the Company.  The Company agrees and acknowledges
      that it shall, to the maximum extent possible under the then prevailing
      circumstances, coordinate, or cause a Subsidiary or Affiliate to
      coordinate, any such request with Grantee’s other commitments and
      responsibilities to minimize the degree to which such request interferes
      with such commitments and responsibilities;
and

              

      

      

      
        	
                 
      

              	
                (vi) 
      

              	
                Grantee
      shall promptly notify the Company’s General Counsel if Grantee is
      contacted by a regulatory or self-regulatory agency with respect to
      matters pertaining to the Company or by an attorney or other individual
      who informs the Grantee that he/she has filed, intends to file, or is
      considering filing a claim or complaint against the
    Company.

              

      

      

      
        	
                 
      

              	
                (vii) 
      

              	
                Grantee
      acknowledges that all original works of authorship that are created by
      Grantee (solely or jointly with others) within the scope of Grantee’s
      employment which are protectable by copyright are “works made for hire” as
      that term is defined in the United States Copyright Act (17 U.S.C.,
      Section 101).  Grantee further acknowledges that while employed
      by the Company, Grantee may develop ideas, inventions, discoveries,
      innovations, procedures, methods, know-how or other works which relate to
      the Company’s current or are reasonably expected to relate to the
      Company’s future business that may be patentable or subject to trade
      secret protection.  Grantee agrees that all such works of
      authorship, ideas, inventions, discoveries, innovations, procedures,
      methods, know-how and other works shall belong exclusively to the Company,
      and the Grantee hereby assigns all right, title, and interest therein to
      the Company.

              

      

      

        
To the extent any of the foregoing works may be patentable, Grantee agrees that
the Company may file and prosecute any application for patents

        
for  such works and that the Grantee will, on request, execute assignments
to the Company relating to (and take all such further steps as may
be

       
 reasonably necessary to perfect the Company’s sole and exclusive ownership
of) any such application and any patents resulting therefrom.

      

      
        	
                (b)

              	
                If
      any provision of Article VI (a) is determined by a court of competent
      jurisdiction not to be enforceable in the manner set forth herein, the
      Company and Grantee agree that it is the intention of the parties that
      such provision should be enforceable to the maximum extent possible under
      applicable law and that such court shall reform such provision to make it
      enforceable in accordance with the intent of the
  parties.

              

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

      
        	
              	
                (c)  

              	
                Grantee
      acknowledges that a material part of the inducement for the Company to
      grant the Performance Stock Units is Grantee’s covenants set forth in
      Article VI (a) and that the covenants and obligations of Grantee with
      respect to nondisclosure, non-solicitation and cooperation relate to
      special, unique and extraordinary matters and that a violation of any of
      the terms of such covenants and obligations will cause the Company
      irreparable injury for which adequate remedies are not available at
      law.  Therefore, Grantee agrees that, if Grantee shall breach
      any of those covenants or obligations, Grantee shall not be entitled to
      vest in the Performance Stock or be entitled to retain any income
      therefrom and the Company shall be entitled to an injunction, restraining
      order or such other equitable relief (without the requirement to post
      bond) restraining Grantee from committing any violation of the covenants
      and obligations contained in Article VI.  The remedies in the
      preceding sentence are cumulative and are in addition to any other rights
      and remedies the Company may have at law or in equity as a court or
      arbitrator shall reasonably
determine.

              

      

      

      
        	
                (d)

              	
                Employment
      Dispute Arbitration Program - Mandatory Binding
      Arbitration of Employment
Disputes.

              

      

      

      
        	
                (i)  

              	
                Except
      as otherwise specified in this Agreement, the Grantee and the Company
      agree that all employment-related legal disputes between them will be
      submitted to and resolved by binding arbitration, and neither the Grantee
      nor the Company will file or participate as an individual party or member
      of a class in a lawsuit in any court against the other with respect to
      such matters.  This shall apply to claims brought on or after
      the date the Grantee accepts this Agreement, even if the facts and
      circumstances relating to the claim occurred prior to that date and
      regardless of whether the Grantee or the Company previously filed a
      complaint/charge with a government agency concerning the
      claim.

              

      

      

      For
purposes of Article VI (d) of this Agreement, “the Company” includes Aetna Inc.,
its Subsidiaries and Affiliates, their predecessors, successors and assigns, and
those acting as representatives or agents of those entities.  THE
GRANTEE UNDERSTANDS THAT, WITH RESPECT TO CLAIMS SUBJECT TO THE ARBITRATION
REQUIREMENT, ARBITRATION REPLACES THE RIGHT OF THE GRANTEE AND THE COMPANY TO
SUE OR PARTICIPATE IN A LAWSUIT.  THE GRANTEE ALSO UNDERSTANDS THAT IN
ARBITRATION, A DISPUTE IS RESOLVED BY AN ARBITRATOR INSTEAD OF A JUDGE OR JURY,
AND THE DECISION OF THE ARBITRATOR IS FINAL AND BINDING.

      

      
        	
                 
      

              	
                 (ii)
       

              	
                THE
      GRANTEE UNDERSTANDS THAT THE ARBITRATION PROVISIONS OF THIS AGREEMENT
      AFFECT THE LEGAL RIGHTS OF THE GRANTEE AND THE COMPANY AND ACKNOWLEDGES
      THAT THE GRANTEE HAS BEEN ADVISED TO, AND HAS BEEN GIVEN THE OPPORTUNITY
      TO, OBTAIN LEGAL ADVICE BEFORE SIGNING THIS
  AGREEMENT.

              

      

      

      
        	
                 
      

              	
                (iii) 
      

              	
                Article
      VI (d) of this Agreement does not apply to workers’ compensation claims,
      unemployment compensation claims, and claims under the Employee Retirement
      Income Security Act of 1974 (“ERISA”) for employee benefits.  A
      dispute as to whether Article VI (d) of this Agreement applies must be
      submitted to the binding arbitration process set forth in this
      Agreement.

              

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                (iv) 
      

              	
                The
      Grantee and/or the Company may seek emergency or temporary injunctive
      relief from a court (including with respect to claims arising out of
      Article VI (a) in accordance with applicable law).  However,
      except as provided in Article VI (c) of this Agreement, after the court
      has issued a ruling concerning the emergency or temporary injunctive
      relief, the Grantee and the Company shall be required to submit the
      dispute to binding arbitration pursuant to this
  Agreement.

              

      

      

      
        	
                 
      

              	
                (v) 
      

              	
                Unless
      otherwise agreed, the arbitration will be administered by the American
      Arbitration Association (the “AAA”) and will be conducted pursuant to the
      AAA’s Employment Arbitration Rules and Mediation Procedures (the “Rules”),
      as modified in this Agreement, in effect at the time the request for
      arbitration is filed.  The AAA’s Rules are available on the
      AAA’s website at www.adr.org.
      THE GRANTEE ACKNOWLEDGES THAT THE COMPANY HAS ENCOURAGED THE GRANTEE TO
      READ THESE RULES PROMPTLY AND CAREFULLY AND THAT THE GRANTEE HAS BEEN
      AFFORDED SUFFICIENT OPPORTUNITY TO DO
SO.

              

      

      

      
        	
                 
      

              	
                (vi) 
      

              	
                If
      the Company initiates a request for arbitration, the Company will pay all
      of the administrative fees and costs charged by the AAA, including the
      arbitrator’s compensation and charges for hearing room rentals,
      etc.  If the Grantee initiates a request for arbitration or
      submits a counterclaim to the Company’s request for arbitration, the
      Grantee shall be required to contribute One Hundred Dollars ($100.00) to
      those administrative fees and costs, payable to the AAA at the time the
      Grantee's request for arbitration or counterclaim is
      submitted.  The Company may increase the contribution amount in
      the future without amending this Agreement, but not to exceed the maximum
      permitted under the AAA rules then in effect. In all cases, the Grantee
      and the Company shall be responsible for payment of any fees assessed by
      the arbitrator as a result of that party’s delay, request for
      postponement, failure to comply with the arbitrator’s rulings and for
      other similar reasons.

              

      

      

      
        	
                 
      

              	
                (vii) 
      

              	
                The
      Grantee and the Company may choose to be represented by legal counsel in
      the arbitration process and shall be responsible for their own legal fees,
      expenses and costs.  However, the arbitrator shall have the same
      authority as a court to order the Grantee or the Company to pay some or
      all of the other’s legal fees, expenses and costs, in accordance with
      applicable law.

              

      

      

      
        	
                 
      

              	
                (viii) 
      

              	
                Unless
      otherwise agreed, there shall be a single arbitrator, selected by the
      Grantee and the Company from a list of qualified neutrals furnished by the
      AAA.  If the Grantee and the Company cannot agree on an
      arbitrator, one will be selected by the
AAA.

              

      

      

      
        	
                 
      

              	
                (ix) 
      

              	
                Unless
      otherwise agreed, the arbitration hearing will take place in the city
      where the Grantee works or last worked for the Company.  If the
      Grantee and the Company disagree as to the proper locale, the AAA will
      decide.

              

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                (x) 
      

              	
                The
      Grantee and the Company shall be entitled to conduct limited pre-hearing
      discovery.  Each may take the deposition of one person and
      anyone designated by the other as an expert witness.  The party
      taking the deposition shall be responsible for all associated costs, such
      as the cost of a court reporter and the cost of an original
      transcript.  Each party also has the right to submit one set of
      ten written questions (including subparts) to the other party, which must
      be answered under oath, and to request and obtain all documents on which
      the other party relies in support of its answers to the written
      questions.  Additional discovery may be permitted by the
      arbitrator upon a showing that it is necessary for that party to have a
      fair opportunity to present a claim or
defense.

              

      

      

      
        	
                 
      

              	
                (xi) 
      

              	
                The
      arbitrator shall apply the same substantive law that would apply if the
      matter were heard by a court and shall have the authority to order the
      same remedies (but no others) as would be available in a court
      proceeding.  The time limits for requesting arbitration or
      submitting a counterclaim and the administrative prerequisites for filing
      an arbitration claim or counterclaim are the same as they would be in a
      court proceeding.  The arbitrator shall consider and decide any
      dispositive motions (motions seeking a decision on some or all of the
      claims or counterclaims without an arbitration hearing) filed by any
      party.

              

      

      

      
        	
                 
      

              	
                (xii) 
      

              	
                All
      proceedings, including the arbitration hearing and decision, are private
      and confidential, unless otherwise required by law.  Arbitration
      decisions may not be published or publicized without the consent of both
      the Grantee and the Company.

              

      

      

      
        	
                 
      (xiii)  

              	
                Unless
      otherwise agreed, the arbitrator’s decision will be in writing with a
      brief summary of the arbitrator’s
opinion.

              

      

      

      
        	
                 
      

              	
                (xiv) 
      

              	
                The
      arbitrator’s decision is final and binding on the Grantee and the
      Company.  After the arbitrator’s decision is issued, the Grantee
      or the Company may obtain an order of judgment from a court and may obtain
      a court order enforcing the decision.  The arbitrator’s decision
      may be appealed to the courts only under the limited circumstances
      provided by law.

              

      

      

      
        	
                 
      

              	
                (xv) 
      

              	
                If
      the Grantee previously signed an agreement, including but not limited to
      an employment agreement, containing arbitration provisions, those
      provisions are superseded by the arbitration provisions of this
      Agreement.

              

      

      

      
        	
                 
      

              	
                (xvi) 
      

              	
                If
      any provision of Article VI (d) is found to be void or otherwise
      unenforceable, in whole or in part, this shall not affect the validity of
      the remainder of Article VI (d) and the remainder of the
      Agreement.  All other provisions shall remain in full force and
      effect.

              

      

      

      For
purposes of this Article VI, the term “Employment” shall refer to active
employment with the Company, any Subsidiary or Affiliate, and shall not include salary
continuation or severance periods.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      

      ARTICLE
VII

      

      OTHER
TERMS

      

      
        	
                (a)

              	
                Nothing
      in this Agreement shall interfere with or limit in any way the right of
      the Company or any Subsidiary or Affiliate to terminate the Grantee’s
      employment at any time.  Neither the execution and delivery
      hereof nor the granting of the Award shall constitute or be evidence of
      any agreement or understanding, express or implied, on the part of the
      Company or any of its Subsidiaries to employ or continue the employment of
      the Grantee for any period.

              

      

      

      
        	
                (b)

              	
                Until
      the Performance Stock Units have become vested, Grantee shall not have any
      rights as a stockholder (including the right to payment of dividends) by
      virtue of this grant of Performance Stock
Units.

              

      

      

      
        	
                (c)

              	
                During
      the Performance Period, the Performance Stock Units shall be
      nontransferable and non-assignable except by will or the laws of descent
      and distribution.

              

      

      

      
        	
                (d)

              	
                The
      award, when vested, will be settled on a net basis.  Prior to
      issuing any Common Shares, the Company will withhold an amount sufficient
      to satisfy federal, state, local, social security and Medicare withholding
      tax requirements relating to award.  Any social security
      calculation or other adjustments discovered after net share payment will
      be settled in cash, not in Shares of Common Stock.  Vesting will
      result in taxable compensation reportable on the Grantee’s W-2 in year of
      vesting.

              

      

      

      
        	
                (e)

              	
                This
      Performance Stock Unit is an unfunded obligation of the Company and
      nothing in this Agreement shall be construed to create any claim against
      particular assets or require the Company to segregate or otherwise set
      aside any assets or create any fund to meet its obligations
      hereunder.

              

      

      

      
        	
                (f)

              	
                Anything
      herein to the contrary notwithstanding, a Grantee whose Performance Stock
      Units have been forfeited as a result of termination of employment due to
      U.S. Military Service and who is later re-employed (in a full-time active
      status) after discharge within the time period set in 38 U.S.C. Section
      4312 will be eligible to have the forfeited Performance Stock Units
      reinstated as follows: (i) if such Grantee is re-employed during the
      Performance Period, all forfeited Performance Stock Units shall be
      reinstated; or (ii) if such Grantee is re-employed after the Performance
      Period, a cash payment will be made to the Grantee, minus applicable
      taxes, for the value of the forfeited Performance Stock Units on the Vest
      Date pursuant to procedures established by the Company for this
      purpose.

              

      

      

      
        	
                (g)

              	
                It
      is the intention of the Company and Grantee that this Agreement not result
      in unfavorable tax consequences to Grantee under Section 409A of the Code,
      and the regulations and guidance promulgated thereunder (“Section 409A”)
      and the Agreement shall be interpreted as to so
      comply.  Notwithstanding anything to the contrary herein, the
      Company and Grantee agree to the provisions set forth below in order to
      comply with the requirements of Section
409A.

              

      

      

      
        	
                 
      

              	
                (i)

              	
                If
      Grantee is a “specified employee” (within the meaning of Section 409A)
      with respect to the Company, any non-qualified deferred compensation
      otherwise payable to or in respect of Grantee in connection with Grantee’s
      termination of employment shall be delayed until the earliest date upon
      which such amounts may be paid without being subject to taxation under
      Section 409A.  Any amount, the payment or benefit of which is
      delayed by application of the preceding sentence, shall be paid as soon as
      possible following the expiration of such
  period.

              

      

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                (ii)

              	
                Unless
      deferred pursuant to this agreement, all payments shall be paid to
      Grantee, to the extent earned, in no event later than the last day of the
      “applicable 2 1⁄2 month period,” as such term is defined in Treasury
      Regulation Section 1.409A-1(b)(4)(i)(A) with respect to such payment’s
      treatment as a “short-term deferral” for purposes of Section
      409A.

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                The
      Company and Grantee agree to cooperate in good faith in an effort to
      comply with Section 409A.  Under no circumstances shall the
      Company be responsible for any taxes, penalties, interest or other losses
      or expenses incurred by the Grantee due to any failure to comply with
      Section 409A.

              

      

      

      
        	
                (h)  

              	
                This
      Agreement is subject to the 2000 Stock Incentive Plan heretofore adopted
      by the Company and approved by its shareholders.  The terms and
      provisions of the Plan (including any subsequent amendments thereto) are
      hereby incorporated herein by reference.  In the event of a
      conflict between any term or provision contained herein and a term or
      provision of the Plan, the applicable terms and provisions of the Plan
      will govern and prevail.

              

      

      

      
        	
                (i)

              	
                At
      such times and upon such terms and conditions as the Company shall
      determine, the Company may permit eligible Grantees to elect to defer the
      distribution of an Award otherwise payable to the Grantee under this
      Agreement until termination of the Grantee’s Employment or such other date
      Company shall permit.

              

      

      

      

      
        
           

        

        
          12ex10-15.htm

    
      

    

    
Exhibit
10.15

     

    Amended
and

    Restated
on

    January
25, 2008

     

    AETNA
INC.

     

    1999
DIRECTOR CHARITABLE AWARD PROGRAM

     

    
      	
              1.

            	
              PURPOSE
      OF THE PROGRAM

            

    

     

    
      	
               
      

            	
              The
      Aetna Inc. Director Charitable Award Program (the “Program”) allows each
      eligible Director (“Director”) of Aetna Inc. (the “Corporation”) to
      recommend that the Corporation make a donation of $1,000,000 to the
      eligible tax-exempt organization(s) (the “Donee(s)”) selected by the
      Director, with the donation to be made, in the Director’s name, in ten
      equal annual installments, with the first installment to be made following
      the Director’s retirement.  The purpose of the Program is to
      recognize the interest of the Corporation and its outside Directors in
      supporting worthy educational institutions and other charitable
      organizations.

            

    

     

    
      	
              2.

            	
              ELIGIBILITY

            

    

     

    
      	
               
      

            	
              All
      persons serving as outside Directors of the Corporation as of February 1,
      1999, shall be eligible to participate in the Program.  All
      outside Directors who join the Corporation’s Board of Directors after that
      date and before January 26, 2008 are eligible to participate in the
      Program upon election to the Board.  An outside Director who
      first joins the Corporation’s Board of Directors after January 25, 2008
      shall not be eligible to participate in the
  Program.

            

    

     

    
      	
              3.

            	
              RECOMMENDATION
      OF DONATION

            

    

     

    
      	
               
      

            	
              When
      a Director becomes eligible to participate in the Program, he or she may
      make a written recommendation to the Corporation, on a form approved by
      the Corporation for this purpose, designating the Donee(s) which he or she
      intends to be the recipient(s) of the corporate donation to be made on his
      or her behalf.  A participating Director may revise or revoke
      any such recommendation by signing a new recommendation form and
      submitting it to the Corporation.

            

    

     

    
      	
              4.

            	
              AMOUNT
      AND TIMING OF DONATION

            

    

     

    
      	
               
      

            	
              Each
      eligible Director may choose one organization to receive a donation of
      $1,000,000, or up to five organizations to receive donations aggregating
      $1,000,000.  Each recommended organization must be recommended
      to receive a donation of at least $100,000.  The donation will
      be made by the Corporation in ten equal annual installments, with the
      first installment to be made shortly after the Director’s termination of
      service as a Director on account of the Corporation’s mandatory director
      retirement policy in effect on the date of such termination of service
      (“Retirement”).  In the event of a Director’s earlier
      termination of service, provided he or she has satisfied the vesting
      requirements, the first installment of the donation will be made when the
      Director otherwise would have reached his or her Retirement
      date.  Notwithstanding the foregoing, provided that the other
      provisions of the Program are satisfied, with regard to any Director
      currently serving as such on January 26, 2007, the first installment shall
      commence shortly after the Director reaches age 72 (or a later time if
      requested by the Director), regardless of whether the Director has
      terminated service as a Director at that time.  If a Director
      recommends more than one organization to receive a donation, each will
      receive a prorated portion of each annual installment.  Each
      annual installment payment will be divided among the recommended
      organizations in the same proportions as the total donation amount has
      been allocated among the organizations by the
  Director.

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    5.         DONEES

     

    
      	
               
      

            	
              In
      order to be eligible to receive a donation, a recommended organization
      must initially, and at the time each donation installment is to be made,
      (a) qualify to receive tax-deductible donations by the Corporation under
      the Internal Revenue Code and (b) meet the then current criteria
      established by the Aetna Foundation, Inc. for its matching grant program;
      provided, however, that United Way, the Combined Health Appeal and any
      other organization conducting a workplace campaign at Aetna not eligible
      for the Aetna Foundation, Inc. matching grant program will be permitted
      Donees if otherwise eligible.  Upon the request of the
      Corporation’s Chief Executive Officer, or in the event Aetna Foundation,
      Inc. or a successor foundation is dormant or not in existence, a
      recommended organization must be reviewed and approved by the Nominating
      and Corporate Governance Committee.  A recommendation will be
      approved unless it is determined that a donation to the organization would
      not be in the best interests of the Corporation.  A Director’s
      private foundation will not be an eligible Donee.  If an
      organization recommended by a participating Director ceases to qualify as
      a Donee, and if the Director does not submit a form to change the
      recommendation, the amount recommended to be donated to the organization
      will instead be donated to the Director’s remaining recommended qualified
      Donee(s) on a prorated basis.  If none of the recommended
      organizations qualify, the donation will be made to the organization(s)
      selected by the Corporation.

            

    

     

    
      	
              6.

            	
              VESTING

            

    

     

    
      	
               
      

            	
              A
      participating Director will be vested in the Program:  (a) when
      he or she completes five years of Board service as an outside Director, or
      (b) in the event he or she terminates service prior to the completion of
      five years of service as a Director, by reason of death or disability, or
      (c) if there is a Change of Control of the Corporation while he or she is
      actively serving on the Board.  The term “Change of Control”
      shall have the same meaning as is defined for that term in the Aetna Inc.
      Non-Employee Director Deferred Stock and Deferred Compensation
      Plan.  For persons serving as outside Directors on February 1,
      1999, Board service as an outside Director prior to that date will count
      as vesting service (including service on the Boards of Aetna Life and
      Casualty Company and U. S. Healthcare, Inc.).  If a
      participating Director terminates Board service (other than due to death
      or disability) before becoming vested, no donation will be made on his or
      her behalf, provided, however, that in the event a participating Director
      terminates service prior to the completion of five years of service as a
      Director by reason of acceptance of a position in government service or
      any other reason, all years of service will be counted towards the vesting
      requirement in the event of such Director’s return to the
      Board.

            

    

     

    
      	
              7.

            	
              FUNDING
      AND PROGRAM ASSETS

            

    

     

    
      	
               
      

            	
              The
      Corporation may fund the Program or it may choose not to fund the
      Program.  If the Corporation elects to fund the Program in any
      manner, neither the participating Directors nor their recommended Donee(s)
      shall have any rights or interests in any assets of the Corporation
      identified for such purpose.  Nothing contained in the Program
      shall create, or be deemed to create, a trust, actual or constructive, for
      the benefit of a Director or any Donee recommended by a Director to
      receive a donation, or shall give, or be deemed to give, any Director or
      recommended Donee any interest in any assets of the Program or the
      Corporation.  If the Corporation elects to fund
    the

            

    

     

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

     

    
      	
               
      

            	
              Program
      through life insurance policies, a participating Director must cooperate
      and fulfill the enrollment requirements necessary to obtain insurance on
      his or her life in order to be eligible to participate or continue to
      participate in the Program.  In the event a Director has
      cooperated and fulfilled such requirements, but is considered to be
      uninsurable, such Director shall still be permitted to participate in the
      Program.

            

    

     

    
      	
              8.

            	
              AMENDMENT
      OR TERMINATION

            

    

     

    
      	
               
      

            	
              The
      Board of Directors of the Corporation may, at any time, without the
      consent of the Directors participating in the Program, amend, suspend, or
      terminate the Program.  However, once a participating Director
      becomes vested in the Program, the Program may not be amended, suspended
      or terminated with respect to such Director by lengthening such Director’s
      vesting period or by reducing the amount or timing of a donation to be
      made in the name of such Director without his or her consent, unless there
      has been an adverse change in laws or regulations affecting the Program
      (e.g., reduction or elimination of the tax deductibility of the donation
      by the Corporation).

            

    

     

    
      	
              9.

            	
              ADMINISTRATION

            

    

     

    
      	
               
      

            	
              The
      Program shall be administered by the Nominating and Corporate Governance
      Committee.  The Committee shall have plenary authority in its
      discretion, but subject to the provisions of the Program, to prescribe,
      amend, and rescind rules, regulations and procedures relating to the
      Program.  The determinations of the Committee on the foregoing
      matters shall be conclusive and binding on all interested
      parties.

            

    

     

    
      	
              10.

            	
              NON-ASSIGNMENT

            

    

     

    
      	
               
      

            	
              A
      Director’s rights and interests under the Program may not be assigned or
      transferred.

            

    

     

    
      	
              11.

            	
              GOVERNING
      LAW

            

    

     

    
      	
               
      

            	
              The
      Program shall be construed and enforced according to the laws of the State
      of Connecticut, and all provisions thereof shall be administered according
      to the laws of said state.

            

    

     

    
      	
              12.

            	
              EFFECTIVE
      DATE

            

    

     

    
      	
               
      

            	
              The
      Program effective date is February 1, 1999.  The recommendation
      of an eligible Director will not be effective until he or she completes
      the Program enrollment
requirements.

            

    

     

     

     

     

     

     

     

     

     

     

    
      
        
           

        

        
          3

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