Document:

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                                                                    EXHIBIT 10.1

                                                         Aetna Inc.
                                                         151 Farmington Avenue
                                                         Hartford, CT 06156-9998

                                                         ELEASE E. WRIGHT
                                                         Senior Vice President
                                                         Human Resources, RC3A
May 25, 2000                                             (860) 273-8371
                                                         Fax:  (860) 560-8721

Richard L. Huber
20 Charter Oak Place
Hartford, CT 06106

Dear Dick:

This letter is to confirm our agreement as follows:

1.       Your last day as an employee and director of Aetna Inc. and its
         affiliates was February 24, 2000.

2.       Provided you shall have delivered the executed release agreement in the
         form attached as Attachment A:

         (i)      Until November 2, 2001 you will be paid salary continuation at
                  two times your base pay rate, payable bi-weekly and you will
                  continue to be eligible for group medical/dental benefits on
                  the same basis as an active employee. You may elect to receive
                  the foregoing salary continuation in a lump sum, but if you do
                  you will no longer be eligible for continuation of your group
                  medical/dental benefits.

         (ii)     You will receive payment for your accrued but unused vacation
                  days.

         (iii)    Notwithstanding anything to the contrary in your ACEShares
                  award agreements, you will continue to be eligible for a pro
                  rata vesting of your ACEShares awards for the 1997-2000 and
                  1999-2002 cycles based on your active service through February
                  25, 2000, to the extent that performance criteria and other
                  provisions as outlined in the respective award agreements are
                  met. Your stock options awards will continue to vest through
                  November 2, 2001; thereafter, their continued vesting and
                  exercise will be governed by the rules applicable to retirees.

         (iv)     Until November 2, 2001, the Company will provide you with such
                  office space and related secretarial support as identified by
                  the Company. In addition, the
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Richard L. Huber
May 25, 2000

                  Company will continue to pay the monthly fees associated with
                  any Company-owned home security equipment until October 31,
                  2001 at which time you may elect to purchase said equipment at
                  a price to be mutually agreed.

         (v)      You will be entitled to outplacement and transitional
                  financial counseling in accordance with the Company's policies
                  and programs or the economic equivalent.

         (vi)     For purposes of your pension, you will be treated as having
                  service of 14 years and 4 months with the Company.

         You would not otherwise be eligible for the foregoing benefits under
         current Company plans and policies and said benefits are in lieu of any
         other separation benefits previously agreed to but not specified in
         this agreement, including the Company's Severance and Salary
         Continuation Benefit Plan and the letter agreement between you and the
         Company dated January 19, 1995, as amended.

3.       If at any time BankAmerica ceases to provide retiree medical coverage,
         and the Company still provides retiree medical coverage, you will be
         eligible to participate in the Company's retiree medical coverage
         program consistent with the Company's policy at that time.

4.       The non-competition covenants contained in your ACEShares agreements
         shall not terminate, but instead shall remain in full force and effect
         until November 2, 2001 and all other covenants in your stock option and
         ACEShares agreements shall remain in full force and effect as set forth
         therein. In addition, in consideration of your agreement to the
         foregoing extension of the restricted period under your ACEShares
         agreements, with respect to paragraph 11(a)(v) of the ACEShares
         agreements you entered into dated January 29, 1999, July 25, 1997 and
         February 28, 1997, the Company agrees that commercial and investment
         banking services and financial services which are not in substantial
         and direct competition with the business of the Company shall to that
         extent not be deemed to be "business activities" which are competitive
         to a "business of the Company," within the meaning of that paragraph.
         The terms and provisions of the non-competition covenants of your
         ACEShares and option agreements shall be incorporated herein, as
         amended above.

5.       You agree to provide assistance to and shall cooperate with the
         Company, upon its reasonable request and without additional
         compensation, with respect to matters within the scope of your duties
         and responsibilities during employment. (The Company agrees and
         acknowledges that it shall, to the maximum extent possible under then
         prevailing circumstances, coordinate (or cause an affiliate to
         coordinate) any such request with your other commitments and
         responsibilities to minimize the degree to which such request
         interferes with such commitments and responsibilities.) The
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Richard L. Huber
May 25, 2000

         Company agrees that it will reimburse you for reasonable travel
         expenses (ie., travel, meals, and lodging) that you may incur in
         providing assistance to the Company hereunder.

6.       To the extent set forth in the immediately following sentence, the
         Company hereby represents that it is not aware of any facts that would
         cause the Company to assert a claim against you for any act or failure
         to act during your employment by the Company. This representation is
         limited to matters presently within my personal knowledge or the
         personal knowledge of L. Edward Shaw, Jr., the general counsel of the
         Company, it being expressly agreed that we have not conducted any
         special review or examination for this purpose. Nothing in this
         agreement shall affect or diminish your rights to indemnification, or
         the Company's indemnification obligations to you, under Connecticut or
         other applicable law or under any applicable insurance policies, in
         connection with claims brought by third parties including, but not
         limited to, any derivative actions brought in the Company's name.

7.       You agree to execute all documentation requested by the Company needed
         to implement this agreement, including resignations from all positions
         and directorships you may hold with Company subsidiaries or affiliates.

8.       Unless required by law, you will not, for yourself or any other person
         or entity, directly or indirectly, divulge, communicate or in any way
         make use of any confidential, sensitive, or proprietary information
         acquired in the performance of your service for the Company, without
         the prior written consent of an appropriate Company officer. You
         represent that all documents and property of the Company, including
         those containing confidential, sensitive or proprietary information,
         have been or shortly will be returned to the Company.

9.       You represent that prior to the date hereof, and you agree that after
         the date hereof, you have not and will not make any communication with
         any party regarding the Company or any aspect of the business or
         affairs of the Company, other than as specifically permitted by a
         written agreement signed by the Chairman of the Board of Directors or
         the General Counsel of the Company or as explicitly compelled by law,
         except for private conversations with individuals who are not members
         of the media or stock analyst community, on the condition that any such
         conversations are limited to general comments consistent with paragraph
         8 and would not reasonably be expected to have a negative affect on the
         image, reputation, prospects, value or business relationships of the
         Company.

10.      You understand and agree that if you breach any of the covenants of
         this letter agreement you will not be entitled to any of the payments
         or benefits provided under paragraphs 2 and 3 or any benefits under the
         Company's non-qualified pension arrangements and you will be required
         to return to the Company any such payments and benefits which you have
         received.
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Richard L. Huber
May 25, 2000

11.      For purposes of paragraph 4 and 9 only, the term Company shall mean not
         only Aetna Inc., but also subsidiary corporations, any affiliated
         entities whether or not incorporated, the employees, agents, officers,
         directors and shareholders of all such entities and any person or
         entity which may succeed to the rights and liabilities of such entities
         by assignment or otherwise.

12.      The entire agreement between you and the Company is set out in this
         agreement or incorporated by reference. No other promises or
         representations have been made, and there is no oral understanding or
         agreement between you and the Company which is not contained, or
         incorporated by reference, in this agreement. This agreement shall be
         construed in accordance with the laws of Connecticut.

Please sign and return one copy of this letter to evidence of your agreement.

Sincerely,

AETNA INC.                                   AGREED TO AND ACCEPTED:

By:   /s/ Elease E. Wright                   By:  /s/ Richard L. Huber
      Elease E. Wright                            Richard L. Huber
      Senior Vice President

                                                  Date:    May 25, 2000
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                                                                    ATTACHMENT A

                                RELEASE AGREEMENT

         I, Richard L. Huber, acknowledge that this document accurately reflects
an agreement entered into between me and Aetna Inc. as of this 25th day of May,
2000. In exchange for the benefits and consideration set forth in a letter dated
May 25, 2000 entered into between Aetna Inc. and me (the "Agreement"), I hereby
agree to the following:

            1. DEFINITION. In this agreement the word "Company" means not only
Aetna Inc., but also subsidiary corporations, any affiliated entities whether or
not incorporated, the employees, agents, officers, directors and shareholders of
all such entities and any person or entity which may succeed to the rights and
liabilities of such entities by assignment or otherwise.

            2. RELEASE. I hereby release and hold harmless (on behalf of myself
and my family, heirs, executors, successors and assigns) now and forever, the
Company from and waive any claim that I have presently, may have or have had in
the past, known or unknown, against the Company by reason of my employment with
and/or service as a director of the Company including, without limitation, the
termination thereof, other than claims I may have (i) to the payment of amounts
due and payable in accordance with the terms of the Agreement, including without
limitation the severance and other benefits and (ii) to be indemnified by the
Company from and against any third party claims arising out of or relating to my
employment with or other services on behalf of the Company.

            3. EXTENT OF RELEASE. This agreement is valid whether any claim
arises under any federal, state or local statute (including, without limitation,
Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age
Discrimination in Employment Act of 1967, the Equal Pay Act, the Americans with
Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974
and all other statutes regulating the terms and conditions of my employment),
regulation or ordinance, under the common law or in equity (including any claims
for wrongful discharge or otherwise), or under any policy, agreement,
understanding or promise, written or oral, formal or informal, between the
Company and myself.

            4. CONSIDERATION. The consideration hereby provided to me under the
Agreement is not required under the Company's standard policies and I know of no
circumstances other than my agreeing to the terms of this agreement which would
require the Company to provide such consideration.
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            5. RESTRICTIONS. I have not filed, nor will I initiate or cause to
be initiated on my behalf, any complaint, charge, claim or proceeding against
the Company before any local, state or federal agency, court or other body
relating to my employment or the termination thereof (each individually a
"Proceeding"), nor will I participate in any Proceeding. I waive any right I may
have to benefit in any manner from any relief (whether monetary or otherwise)
arising out of any Proceeding, including any EEOC proceeding. I understand that
by entering into this agreement, I will be limiting the availability of certain
remedies that I may have against the Company and limiting also my ability to
pursue certain claims against the Company. The foregoing will not be used to
justify interfering with any right I may have to file a charge or participate in
an investigation or proceeding conducted by the EEOC. The foregoing will not
restrict my right to defend myself in any action brought against me by the
Company.

            6. PENALTIES. If I initiate or participate in any legal actions, as
described above, the Company shall have the right, but shall not be obligated,
to deem this agreement void without effect and to require me to repay to the
Company any amounts payment of which was conditioned on the execution of this
agreement, and to terminate any benefit or payments (other than with respect to
vested benefits under any plan governed by ERISA) that are otherwise payable
under the Agreement.

            7. RIGHT TO COUNSEL. The Company advises me that I should consult
with an attorney prior to execution of this agreement and the Agreement. I
understand that it is in my best interest to have this document and the
Agreement reviewed by an attorney of my own choosing and at my own expense, and
I hereby acknowledge that I have been afforded a period of at least twenty-one
days during which to consider this agreement and the Agreement and to have this
agreement and the Agreement reviewed by my attorney.

            8. SEVERABILITY CLAUSE. Should any provision or part of this
agreement be found to be invalid or unenforceable, only that particular
provision or part so found and not the entire agreement shall be inoperative.

            9. EVIDENCE. This document may be used as evidence in any proceeding
relating to my employment or the termination thereof. I waive all objections as
to its form.

           10. FREE WILL. I am entering into this agreement and the Agreement of
my own free will. The Company has not exerted any undue pressure or influence on
me in this regard. I have had reasonable time to determine whether entering into
this agreement and the Agreement is in my best interest. I

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understand that if I request additional time to review the provisions of this
agreement and the Agreement, a reasonable extension of time will be granted.

           11. REVOCATION. This agreement may be revoked by me within seven days
after the date on which I sign this agreement and I understand that this
agreement and the Agreement are not binding or enforceable until such seven day
period has expired. Any such revocation must be made in a signed letter executed
by me and received by the Company at the following address no later than 5 p.m.
Eastern Standard Time on the seventh day after I have executed this agreement
and the Agreement: Aetna Corporate Secretary, RC4A, 151 Farmington Avenue,
Hartford, CT 06156. I understand that if I revoke this agreement, the Agreement
will not be effective or enforceable and I will not be entitled to any benefits
thereunder.

           12. NON-ADMISSION. Nothing contained in this agreement shall be
deemed or construed as an admission of wrongdoing or liability on the part of
the Company.

           13. GOVERNING LAW. This agreement and the Agreement shall be
construed in accordance with the laws of the State of Connecticut, applicable to
contracts made and entirely to be performed therein.

Date:    May 25, 2000                                       /s/ Richard L. Huber
                                                            Richard L. Huber

                                       3<PAGE>   1
                                                                    EXHIBIT 10.2

May 31, 2000                                               151 Farmington Avenue
                                                         Hartford, CT 06156-3124
Mr. William H. Donaldson
860 United Nation's Plaza
New York, NY 10017

Dear Bill:

         This letter establishes the terms of your employment with Aetna, Inc.
("Aetna").

         1. Title/Position: You will serve as the Chief Executive Officer,
President and Chairman of the Board of Directors ("Board") of Aetna at the
pleasure of the Board.

         2. Start Date: February 25, 2000.

         3. Base Salary: From your start date through December 31, 2000 you
shall be paid an aggregate salary of $1,000,000, payable biweekly. Your annual
salary thereafter shall be $1,000,000, subject to the same being reviewed for
possible increase on the basis of your performance during Aetna's annual salary
review process in 2001 and each year thereafter as long as you are employed by
Aetna.

         4. Annual Bonus: You will be eligible to earn an annual bonus of up to
$2,000,000 under the Aetna Annual Incentive Plan in respect of each fiscal year
during which you are employed by Aetna. Subject to any applicable deferral
election, each of your annual bonuses will be paid as soon as practicable after
the end of the fiscal year, but in no event later than March 15 of the following
year.

         5. Incentive Awards:

                  (a) Initial Stock Option Award - Effective as of February 29,
         2000 Aetna awarded you an option ("Option") to purchase 500,000 shares
         of Aetna common stock under the Aetna 1996 Stock Incentive Plan
         ("Plan"), at the following per share exercise prices:

                  <TABLE>
                  <CAPTION>
                      Number of Shares           Exercise Price
                      ----------------           --------------
                  <S>                            <C>
                         300,000                     $41.125
                         100,000                     $ 55.00
                         100,000                     $ 65.00
                  </TABLE>

         The Option will become exercisable as of March 1, 2001 and has a fixed
term of 10 years from the date of grant.
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Mr. William H. Donaldson
May 31, 2000

                  (b) Initial Incentive Stock Award - You have also been granted
         100,000 shares of time-vesting Incentive Stock under the Plan
         ("Incentive Shares"). Prior to March 1, 2001 the Incentive Shares will
         be forfeitable, but you will receive all dividends and distributions
         otherwise payable with respect to the underlying shares. As of March 1,
         2001 the forfeiture provisions and any related restrictions on the
         Incentive Shares will lapse and the Incentive Shares will thereafter be
         fully vested.

                  (c) Award Documentation - Aetna will execute and deliver to
         you shortly written award agreements evidencing the Option and the
         Incentive Shares, which will set forth the terms described above and in
         paragraph 12 below and such other terms (not inconsistent with the
         terms herein) as are typically included in such award agreements under
         the Plan.

                  (d) Other Incentive Awards - You will be entitled to receive
         additional incentive awards as determined by Aetna, in its sole
         discretion.

         6. Office and Support Staff: You will be provided with offices suitable
to your position and duties in Hartford, Connecticut and New York City and
adequate secretarial and support staff in both locations to assist you in the
performance of your duties.

         7. Hartford Apartment: Aetna will provide you with the use of a fully
furnished apartment suitable to your position and reasonably acceptable to you
in the Hartford, Connecticut area and will make you whole for any and all
related taxes on an after-tax basis.

         8. Car: Aetna will assume the obligations of your current employer
under the lease covering the car which you currently use and will pay all
reasonable expenses relating to the car (including, insurance, fuel, repairs and
maintenance). At the expiration of the current lease (or such earlier date that
your current car becomes unusable) Aetna will provide a comparable car for your
use on the same basis.

         9. Other Benefits: You will participate in all welfare and fringe
benefits, and receive all perquisites, that are generally provided to the Chief
Executive Officer of Aetna.

         10. Company Aircraft: In furtherance of Aetna's business-related
security concerns, you shall be required to use Aetna provided aircraft for all
business and personal travel and Aetna will make you whole for any and all
related taxes on an after-tax basis.

         11. Excise Tax Make Whole: If any payments or benefits provided to you
by Aetna are subject to golden parachute excise taxes, then Aetna will make you
whole for such excise taxes on an after-tax basis pursuant to procedures
established for this purpose.

         12. Termination of Employment: If at any time you voluntarily elect to
terminate your employment with Aetna without the consent of the Board or your
employment with Aetna is terminated by Aetna due to gross misconduct in the
performance of your duties which is demonstrably and materially injurious to
Aetna, you will be entitled to receive any unpaid accrued base salary, annual
bonus (to the extent such annual bonus was previously determined but not yet
paid) and business expense reimbursements ("Accrued Payments") (payable within
15 days, subject to any deferral elections then in effect), but you will
immediately forfeit the Option
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Mr. William H. Donaldson
May 31, 2000

and the Incentive Shares, if and to the extent they are unvested. If, for any
reason other than those stated immediately above (including disability or
death), (x) you cease to hold the positions of Chief Executive Officer,
President and Chairman of Aetna before a spin-off or similar separation of the
Aetna healthcare business from the financial services business or (y) you cease
to hold the positions of Chief Executive Officer and Chairman of either the
healthcare business or the financial services business after the separation of
those businesses, then notwithstanding anything to the contrary contained herein
(i) you will be entitled to receive a single cash payment within 15 days of such
termination (subject to any deferral elections then in effect) equal to the sum
of (A) the Accrued Payments, (B) if such termination occurs prior to December
31, 2000, an amount equal to the unpaid balance of your salary through December
31, 2000, (C) if such termination occurs prior to the payment of your year 2000
annual bonus, your annual bonus for year 2000 of up to $2,000,000 as determined
by Aetna (but in no event less than a presumptive bonus at target of
$1,000,000), (D) if such termination occurs after December 31, 2000, a pro-rata
portion of your annual bonus in respect of the year of the termination
(calculated by multiplying the bonus amount determined by Aetna (but not less
than a presumptive bonus at target of $1,000,000) by a fraction, the numerator
of which is the number of days of your employment with Aetna during such year
and the denominator of which is 365), plus any annual bonus that has been
determined but not yet paid in respect of the immediately preceding year (or if
not yet determined, an amount determined by Aetna (but not less than a
presumptive bonus at target of $1,000,000), (ii) to the extent the Option is not
vested and exercisable as of the date of such termination, the Option will
immediately become fully vested and exercisable upon such termination, (iii) to
the extent the forfeiture provisions and any related restrictions on the
Incentive Shares have not lapsed as of the date of such termination, all such
forfeiture provisions and related restrictions will immediately lapse upon such
termination and (iv) any other amounts, accruals or entitlements under Aetna
compensation programs or awards shall be governed by the terms thereof;
provided, however, that the amounts payable under this paragraph are in lieu of
any benefits to which you might otherwise be entitled under any severance plans
or policies of Aetna applicable to employees generally. In the event of your
death, the payments and benefits for which you would have been eligible
hereunder will inure to the benefit of your estate.

          13. Restrictive Covenant: You agree that during the term of your
employment by Aetna and for one year thereafter you will not become associated,
whether as principal, partner, employee, consultant or shareholder (other than
as a holder of not more than 1% of the outstanding voting shares of any publicly
traded company), with any entity that is actively engaged in any geographic area
in any business which is in substantial and direct competition with Aetna. You
further agree that during the term of your employment by Aetna and for two years
thereafter you will not induce any employee of Aetna to be employed or perform
services elsewhere. Finally, you agree that during the term of your employment
by Aetna and thereafter (subject to the requirements of legal process) you will
hold in confidence all trade secrets, confidential information and proprietary
materials of Aetna. For the avoidance of doubt (i) the business of Donaldson,
Lufkin & Jenrette, Inc. and its affiliates ("DLJ") shall not be deemed to be in
substantial and direct competition with Aetna, (ii) no shares of any entity
beneficially owned by DLJ shall be attributed to you, (iii) the recruitment and
hiring of employees of Aetna by DLJ shall not be deemed to violate the foregoing
covenants, provided that you are not personally and actively involved in such
recruitment or hiring and (iv) information and materials shall not be considered
to be trade secrets, confidential or proprietary if they (a) have previously
been disclosed to the public, or are in the public domain, other than as a
result of the Executive's
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Page 4
Mr. William H. Donaldson
May 31, 2000

breach of this paragraph 13, or (b) are known or generally available within any
trade or industry of Aetna.

         14. If the foregoing terms are acceptable to you, please indicate your
acceptance and agreement by signing the enclosed copy of this letter and
returning it to me.

                                             Very truly yours,
                                             Aetna Inc.

Accepted and Agreed:  May 25, 2000

/s/ William H. Donaldson                /s/  Elease E. Wright
William H. Donaldson                         Elease E. Wright,
                                             Senior Vice President,
                                             Human Resources

                                        /s/  Michael H. Jordan
                                             Michael H. Jordan,
                                             Chairman of the Committee
                                             on Compensation and Organization
                                             of the Board of Directors

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