Document:

EX-10.14

 

Exhibit 10.14

Amended and

Restated on

January 26, 2007

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 shall be immediately eligible to participate in the Program
upon election to the Board.
	 
	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.

Page 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 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.

Page 2

 

	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.

Page 3EX-10.25

 

Exhibit
10.25

Aetna

151 Farmington Avenue

Hartford, CT 06156

Ronald A. Williams

Chairman, CEO and President

(860) 273-1239

Fax: (860) 273-9020

February 22, 2007

Alan M. Bennett

48 Field Brook Road

Madison, CT 06443

Dear Alan:

This letter amends the letter to you from Aetna Inc. dated September 22, 2004. The second paragraph
of the September 22, 2004 letter is amended to change the reference to November 23, 2007 to March
30, 2007.

Aetna Inc.

By /s/ Ronald A. Williams

Agreed and Accepted

/s/ Alan M. Bennet

Alan M. Bennett

February 23, 2007

DateEX-10.29

 

Exhibit 10.29

	 	 	 
	

	 	Kenneth Meyer
	 

	 	Head of Executive Recruiting
	 

	 	Aetna
	 

	 	151 Farmington Avenue — RSAH
	 

	 	Hartford, CT 06156
	January 25, 2007

	 	Ph: 860-273-0537
	 

	 	Fax: 860-273-4816
	 

	 	MeyerK3@aetna.com

Mr. Joseph M. Zubretsky

160 Riverside Boulevard

Apt# 31F

New York, N.Y. 10069

Dear Joe:

On behalf of Aetna Inc. (the “Company”), I am pleased to offer you the position of Executive Vice
President, Finance, as the planned successor to the Senior Vice President, Chief Financial Officer.
Upon your assumption of that role, you will become the Executive Vice President, Chief Financial
Officer.

You have agreed to commence your employment as soon as practicable, but in no event later than
February 28, 2007. As set forth below, your total annualized compensation opportunity for 2007
and 2008 (salary, plus bonus at target performance, plus long-term incentive award at target
performance) will have a target value of $3,900,000 as more fully described below.

Your base salary will be $700,000 per year, payable in accordance with the Company’s regular
payroll practices (currently bi-weekly). Your salary will be reviewed periodically for a possible
salary increase and the Company may also from time to time review and adjust salaries to reflect
appropriate compensation for each position, provided, however, that your salary may not be reduced
by the Company without your consent, except in the event of a ratable reduction affecting senior
officers of the Company generally.

You will be eligible for consideration for an award under the Company’s annual incentive program
beginning with the 2007 performance year (payable in 2008 as long as the plan is in effect). Each
year thereafter, while you are employed by the Company, you will be eligible for consideration for
additional awards under the annual incentive program while the plan remains in effect. Your
full-year annual target bonus opportunity will be 100% of your base salary.

In connection with the Company’s long-term incentive awards granted in 2007, at the next regularly
scheduled meeting of the Board of Directors’ Committee on Compensation and Organization we will
recommend that you be granted Aetna stock appreciation rights (SARs) which we consider as having a
total target value of $1,250,000 on the effective date of the grant. The number of SARs that you
will receive will be based on both a valuation factor (which will be the same as that used to value
SAR grants made to senior executives of the Company generally) and the closing price of Aetna
common stock on the effective date of the grant, in accordance with Company grant practices. SARs
are not exercisable for the first year after the date of grant and will vest in three equal annual
installments. This grant will be subject to you agreeing to the terms of the award agreement and
the plan.

We will also recommend at the next regularly scheduled meeting of the Board of Directors’ Committee
on Compensation and Organization that you be granted restricted stock units (RSUs) which we
consider as having a total value on the effective date of the grant of $1,250,000. The

 

 

Joseph M. Zubretsky

January 25, 2007

Page 2

number of RSUs that you will receive will be based on the
closing price of Aetna common stock on the
effective date of the grant, in accordance with Company grant practices. These RSUs will vest in
three equal annual installments beginning on the first anniversary of the grant. The RSU grant
will be subject to you agreeing to the terms of the award agreement and the plan.

In connection with the Company’s long-term incentive program for 2008, and provided you are an
active employee at that time, we will recommend to the Board of Directors Committee on Compensation
and Organization that you
receive a long-term award opportunity at target performance of $2,500,000. This recommendation
will be made at the same time in 2008 as regular long-term incentive awards are recommended for
other senior officers of the Company generally.

In recognition of your career move, at the next regularly scheduled meeting of the Board of
Directors’ Committee on Compensation and Organization, we will also recommend that you be granted
sign-on Aetna stock appreciation rights (Sign on SARs) which we consider as having a total target
value of $3,000,000 on the effective date of the grant. The number of Sign on SARs that you will
receive will be based on both a valuation factor (which will be the same as that used to value SAR
grants made to other senior executives of the Company generally) and the closing price of Aetna
common stock on the effective date of the grant, in accordance with Company grant practices. The
Sign on SARs will vest in three equal annual installments from the date of grant. The Sign on SAR
grant will be subject to you agreeing to the terms of the award agreement and plan.

In addition, at the next regularly scheduled meeting of the Board of Directors’ Committee on
Compensation and Organization we will also recommend that you be granted sign on restricted stock
units (Sign on RSUs) which shall have a total grant value of $3,500,000 on the effective date of
the grant. The number of Sign on RSUs that you will receive will be based on the closing price of
Aetna common stock on the effective date of the grant, in accordance with Company grant practices.
These Sign on RSUs will vest in three equal annual installments from the date of grant. The Sign on
RSU grant will be subject to you agreeing to the terms of the award agreement and the plan.

Generally, off-cycle grants are awarded on a specified day in the month following the month in
which you were hired. If the month of the grant is a month in which the Company is in a
pre-earnings blackout, the grant will not be effective until at least two business days after the
release of earnings. You will be sent your grant details along with instructions on how to accept
your grants within two weeks of your grant effective date.

As a part of the Executive Tier of the Aetna Equity based Compensation program, we encourage you to
achieve a certain level of ownership in Company stock to better align the interests of senior
executives with Company shareholders. Specifically, at the end of a three year period from your
start of employment, we expect you to own shares of stock in the Company with a dollar value
greater than or equal to 300% of your base salary. Under current program guidelines, vested RSUs
and stock held upon exercise of a SAR are counted for purposes of determining whether an executive
has satisfied the ownership expectation. There are a variety of Company programs currently
available to you to build this stock ownership position. More information about these programs and
others are available on our “My Pay and Benefits” website.

 

 

Joseph M. Zubretsky

January 25, 2007

Page 3

A one-time sign-on payment of $850,000 (less applicable withholding and taxes) will be made to you
after you begin work at Aetna in recognition of your career move. This payment will be reflected
in either your first or the following paycheck (depending on the payroll cycle and your start
date). If you voluntarily terminate your employment or are terminated for Cause within 6 months of
your start date, you will be responsible for repaying the full amount of your sign-on payment.
Additionally, in recognition of forfeited future dividends, we will provide a one-time additional
sign-on payment of $200,000 (less applicable taxes) which will be paid to you after you begin work
at Aetna in recognition of your career move. This payment will be reflected in either your first
or the following paycheck (depending on the payroll cycle and your start date). If you voluntarily
terminate your employment or are terminated for Cause within 12 months of your start date, you will
be responsible for repaying 50% of this additional sign-on payment. Upon receipt of documentation
of showing required repayment, we will also provide reimbursement of up to $125,000 of your current
employer’s sign-on bonus, which you may be required to pay, as a result of your termination of
employment.

In recognition of the forfeiture of your SERP, a $2,800,000 Deferred Compensation Account bearing
interest at same rate as the fixed value fund of the Company’s 401(k) Plan (currently 5.00%) will
be created for you. This account, together with accrued interest thereon, will vest in increments
of 25% per year on the anniversary of your date of hire. If your employment is involuntarily
terminated by the Company other than for Cause on or before the second anniversary of your hire
date, you will vest as follow: $2,800,000 (together with interest thereon) multiplied by a fraction
the numerator of which shall be the number of months from your date of hire until your termination
date and the denominator shall be forty-eight (48). If your employment is involuntarily terminated
by the Company other than for Cause after the second anniversary of your hire date, the amount that
would have vested in the current year and the next year will become immediately vested as of your
termination date. The vested amount will be paid to you six (6) months following your termination
of employment with the Company.

You will be eligible to participate in our employee benefits (including fringe benefits, vacation,
qualified pension and qualified and non-qualified 401(k), life, health, accident and disability) on
a basis no less favorable than those benefits made available generally to senior executives of the
Company. Coverage for medical, dental, life, disability, flexible spending accounts and accident
benefits will become effective on the first of the month following the date you begin work. If you
begin work on the first of the month, your benefits will become effective immediately. Information
on Aetna’s total benefits package (various benefit programs and services and associated costs) can
be accessed at www.Aetna.com/working (Benefits). Once you begin work, you can enroll for
coverage through our intranet site.

For the purpose of Paid Time Off (PTO) accrual only, you will earn PTO days as if you had 10 (ten)
years of service. In your first partial calendar year of employment, your PTO accrual will be
pro-rated, based on your hire date. PTO includes time out of the office for vacation, personal
time, family illness, and incidental sick days.

Federal law requires that we verify the employment authorization of all new employees. On your
first day, you must bring appropriate documentation to verify both your identity and employment
eligibility. Please carefully review the enclosed materials that provide information about certain
documents (List of Acceptable Documents) that you must bring to work on your first day.

 

 

Joseph M. Zubretsky

January 25, 2007

Page 4

You have provided us with a copy of your UnumProvident Corporation Employment Agreement dated March
16, 2005 (the “UnumProvident Agreement”) and you have represented that you are not subject to any
other employment agreement or restriction with any present and/or former employers. We have each
independently concluded that Aetna is not a significant competitor of UnumProvident Corporation.
In addition, your primary duties and responsibilities at Aetna will not relate to the management or
operation of the Aetna’s disability insurance business or any complementary special risk products
and services. Therefore, your future employment at Aetna will not violate §12(a) of the
UnumProvident Agreement. You agree not to use or disclose any UnumProvident confidential
information in any way in the performance of your duties at the Company. In so agreeing, Aetna
will (a) with counsel of its choice reasonably acceptable to you, assume the defense of and, to the
fullest extent permitted by law, indemnify and hold you harmless from any and all Losses arising
from or related to claims threatened or initiated by UnumProvident for alleged breach of §§12(a) or
12(c) of the UnumProvident Agreement and/or related common law claims, and contract claims in
connection with the fact of your departure, and (b) reimburse you for all forfeitures and Losses
under §12(b) of the UnumProvident Agreement. For the purposes of this paragraph, “Losses” shall
mean all losses, costs, damages or expenses incurred or suffered by you (including attorneys’ fees
and tax liabilities relating to any indemnification payment made by Aetna, other than taxes for
payments that relate to a Loss that is a replacement of an amount that otherwise would have been
compensation to you). In the event of any interruption or cessation (or delay in the commencement)
of your employment with the Aetna due to any legal action by UnumProvident, the Aetna’s obligations
under this agreement shall not be suspended and any such interruption or cessation (or delay) shall
not give Aetna the right to terminate your employment for Cause. This indemnification obligation
shall survive the termination of your employment with Aetna for any reason other than for Cause.

To protect the Company’s proprietary information, as a condition of your employment, you will be
required to sign and return the attached Non-Competition, Non-Solicitation, Confidentiality and
Assignment Agreement. Please keep a copy for your records. We have agreed that you will not take
any information or documents of any kind

if/when you resign from your current employer; will return any and all documents, files and
electronic records of any description that relate in any way to your current employer’s business’
and will not provide to the Company, or use in the performance of your duties, any confidential
information of your current or any prior employer.

If your employment is involuntarily terminated by the Company during the first 24 months of
employment other than for Cause, you will receive payment for (a) one hundred four (104) weeks of
salary (such that at the end of the 104 week period you shall have received a total 200% of
salary), and (b) twenty-four (24) months of bonus in the amount of 100% of salary (such that at
the end of the 24 month period you shall have received as bonus a total equal to 200% of salary)
all in lieu of amounts payable under any Company severance and salary continuation benefits plan,
upon delivery of a release of any employment-related claims and covenants in form and substance
reasonably satisfactory to the Company. Such salary continuation and target bonus payments shall
be made in accordance with the Company’s payroll practice then in effect (currently bi-weekly). If
your employment is involuntarily terminated by the Company other than for Cause after the
twenty-fourth (24) month of employment, you will receive (a) fifty-two (52) weeks of base salary
and (b) twelve (12) months of target bonus (calculated at the rate of 100% of salary continuation)
all in lieu of amounts payable under any Company severance and salary continuation benefits plan
upon delivery of a release of any employment-related claims and covenants in form and substance
reasonably satisfactory to the Company. Further, should termination occur as a result of a Change
in Control, you will be afforded 280G financial

 

 

Joseph M. Zubretsky

January 25, 2007

Page 5

protection beyond a 10% excess personal tax
liability, as set forth in Exhibit A. In addition, notwithstanding any plan provision or
applicable award agreement to the contrary, upon involuntary termination of employment by the
Company other than for Cause, your Sign on SARs and RSUs will continue to vest during the
applicable severance period provided herein. At the end of such severance period any remaining
unvested Sign on Sars will automatically vest and any remaining unvested Sign on RSUs will vest on
the original vesting date set forth in the award agreement (without regard to your termination of
employment). The vested Sign on SARs will remain exercisable for the lesser of five (5) years or
the remaining term of the SAR. Upon your involuntary termination of employment due to death or
disability, your Sign on SARs and RSUs will immediately vest and the Sign on SARs will be
exercisable for the lesser of five (5) years or the remaining term of the SAR.

For the purposes of this Agreement, “Cause” means the occurrence of any one or more of the
following: (a) your willful and continued failure to attempt in good faith to perform the duties
of your position (other than as a result of incapacity due to physical or mental illness or injury)
which failure is not remedied within fifteen business days of written notice from the Company; (b)
your material gross negligence or willful malfeasance in the performance of your duties; (c) with
respect to the Company, your having been convicted of fraud, embezzlement, or any other act
constituting a felony; or (d) your having been convicted of a felony which has or is likely to have
a material adverse economic or reputational impact on the Company. For purposes of this
definition, no act or failure to act shall be deemed “willful” unless effected by you without
reasonable belief that such action or failure to act was lawful and in the best interests of the
Company.

If any provision of this agreement (or any award of compensation or benefits provided under this
agreement) would cause you to incur any additional tax or interest under Section 409A of the
Internal Revenue Code, the Company shall reform such provision to comply with 409A and agrees to
maintain, to the maximum extent practicable without violating 409A of the Code, the original intent
and economic benefit to you of the applicable provision.

This offer and your acceptance of that offer also are contingent upon your agreement to use the
Company’s mandatory/binding arbitration program rather than the courts to resolve
employment-related legal disputes. In arbitration, an arbitrator instead of a judge or jury
resolves the dispute, and the decision of the arbitrator is final and binding. The enclosed
materials should answer any questions you have about Aetna’s Employment Dispute Arbitration
Program. With respect to claims subject to the arbitration requirement, arbitration replaces your
right and the Company’s right to sue or participate in a lawsuit. You are advised to, and may take
the opportunity to, obtain legal advice before final acceptance of the terms of this offer. Please
complete the enclosed Employment Dispute Arbitration Acknowledgement form and return it to your
hiring manager on or before your first day of employment.

You should understand that Aetna is an “at will” employer and makes no representation to you of
continued employment. While the Company hopes that its employment relationship with its employees
will be mutually enjoyable and lasting, the Company may terminate your employment at any time, with
or without cause or notice, and you may do the same. This letter reflects all of the terms of the
Company’s offer of employment and by your acceptance you represent to the Company that you are not
relying on any verbal or other promises, inducements, representations or other consideration not
reflected in this letter.

 

 

Joseph M. Zubretsky

January 25, 2007

Page 6

Your New Employee Orientation will be delivered via Aetna’s intranet on your start date. Our
orientation web-site will provide you with information which allows you to sign-up for benefits,
handle payroll administration functions, obtain your employee I.D. badge and parking hang tag
(where applicable), etc. Look for the “Welcome to Aetna” e-mail that will start you on your
orientation experience.

Once again, I am delighted to extend this offer to you and look forward to your acceptance. Please
acknowledge your acceptance of this offer by signing the enclosed copy of this letter, the enclosed
copy of the non-competition/non-solicitation/confidentiality/assignment agreement. and returning
them to me within two (2) days. The terms set forth in this offer are irrevocable during this two
day period and shall not be withdrawn during such period. If you have any questions, please do not
hesitate to call me.

Sincerely,

Aetna Inc.

	 	 	 	 	 
	By:
	 	/s/ Kenneth Meyer	 	 
	 

	 	 

Kenneth Meyer
	 	 

	 	 	 	 	 	 	 
	Accepted:

	 	/s/ Joseph M. Zubretsky	 	Date:	 	February 6, 2007
	 

	 	 
	 	 	 	 
	 

	 	Joseph M. Zubretsky	 	 	 	 

c: Ronald A. Williams

Enclosures

 

 

Interoffice Communication

Exhibit A

	 	 	 
	To:

	 	Joseph M. Zubretsky
	 
	 	 
	Date:

	 	January 25, 2007
	 
	 	 
	Subject:

	 	Change in Control Excise Tax Policy

Pursuant to the offer letter (the “Agreement”) provided to you by Aetna Inc. (together with any
successor, “Aetna”) as of the date hereof setting forth your severance protection in the event of a
change in control, you have agreed that you will be subject to the Aetna Change in Control Excise
Tax Policy for Selected Officers. This memorandum sets forth the terms of that policy as it
applies to you.

	1.	 	Initial Determinations by Accounting Firm.
	 
	 	 	In the event that a change in “the ownership or effective control” of Aetna or “the ownership of
a substantial portion of the assets” of Aetna (a “Change in Ownership”) occurs or is expected to
occur (in either case within the meaning of Section 280G of the Internal Revenue Code of 1986,
as amended (the “Code”)), Aetna shall retain a national accounting firm selected by Aetna and
reasonably acceptable to you (the “Accounting Firm”) to perform the calculations necessary under
this memorandum. The Accounting Firm shall have discretion to retain an independent appraiser
with adequate expertise (the “Appraiser”) to provide any valuations necessary for the Accounting
Firm’s calculations hereunder. Aetna shall pay all the fees and costs associated with the work
performed by the Accounting Firm and any Appraiser retained by the Accounting Firm. If the
Accounting Firm has performed services for any person, entity or group in connection with the
Change in Ownership, you may select an alternative national accounting firm to be the Accounting
Firm. If the Appraiser otherwise performs work for any of the entities involved in the Change
in Ownership or their affiliates (or has performed work for any such entity within the three
years preceding the calculations hereunder), then you may select an alternative appraiser of
national stature with adequate expertise to be the Appraiser. The Accounting Firm shall provide
promptly to both Aetna and you a written report setting forth the calculations required under
this memorandum, together with a detail of all relevant supportive data, valuations and
calculations. All determinations of the Accounting Firm shall be binding on you and Aetna.
When making the calculations required hereunder, you shall be deemed to pay:

	 	•	 	Federal income taxes at the highest applicable marginal rate of Federal income taxation
for the taxable year for which any such calculation is made, and
	 
	 	•	 	any applicable state and local income taxes at the highest applicable marginal rate of
taxation for the taxable year for which any such calculation is made, net of the maximum
reduction in Federal income taxes which could be obtained from deduction of such state and
local taxes.

 

 

	 	 	The Accounting Firm shall determine (the “Initial Determination”):

	 	(i)	 	the aggregate amount of all payments, benefits and distributions provided by Aetna to
you or for your benefit, whether paid or payable or distributed or distributable pursuant
to the terms of the Agreement or any other agreement, plan or arrangement of Aetna or
otherwise (other than any payment pursuant to this memorandum) which are in the nature of compensation and contingent upon a Change in
Ownership (valued pursuant to Section 280G of the Code) (collectively the “Payments”); and

	 	(ii)	 	the maximum amount of the Payments you would be entitled to receive without being
subject to the excise tax imposed by Section 4999 of the Code (the “Payment Cap”) (such
excise tax, together with any interest or penalties with respect to such excise tax, are
hereinafter collectively referred to as the “Excise Tax”).

	2.	 	Initial Treatment of Payments.

	 	(a)	 	If the amount of the Payments does not exceed the Payment Cap, you shall be entitled to
receive the full amount of the Payments.
	 
	 	(b)	 	If the amount of the Payments exceeds the Payment Cap by less than 10% of the Payment
Cap amount, then, notwithstanding anything to the contrary, the amount of the Payments
payable to you shall be reduced to the amount of the Payment Cap. In the event that the
Payments are subject to reduction hereunder, you shall have the right to designate which of
the Payments will be reduced or eliminated.
	 
	 	(c)	 	If the amount of the Payments exceeds the Payment Cap by more than 10% of the Payment
Cap amount, then the amount of the Payments you are entitled to receive shall not be
reduced and Aetna shall pay to you an additional payment (a “Gross-Up Payment”) in an
amount such that after payment by you of all taxes (including any interest and penalties
imposed with respect to such taxes), including any Excise Tax, imposed upon the Gross-Up
Payment you retain an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
the Payments. All determinations required to be made as to whether a Gross-Up Payment is
required and the amount of such Gross-Up Payment shall be made by the Accounting Firm.

	3.	 	Redeterminations Based on IRS or Court Ruling.
	 
	 	 	If after the date of the Initial Determination (A) you become entitled to receive additional
Payments (including, without limitation, severance) contingent upon the same Change in
Ownership, or (B) you become subject to the terms of any final binding agreement between you and
the Internal Revenue Service or any decision of a court of competent jurisdiction which is not
appealable or for which the time to appeal has lapsed (a “Final Determination”) and which is
contrary to the Initial Determination, then based upon such additional Payments or such Final
Determination (as the case may be), the Accounting Firm shall recalculate:

	 	(i)	 	the aggregate Payments (such recalculated amount, the “Redetermined Payments”); and

 

 

	 	(ii)	 	the maximum amount of the Redetermined Payments you would be entitled to receive
without being subject to the excise tax imposed by Section 4999 of the Code (the
“Redetermined Payment Cap”) (such excise tax, together with any interest or penalties with
respect to such excise tax, are hereinafter referred to as the “Redetermined Excise Tax”).

	4.	 	Reconciliations Based on Redeterminations.

	 	(a)	 	If the Redetermined Payment Cap is greater than the Payment Cap (and your Payments were
reduced pursuant to paragraph 2(b)), then Aetna shall promptly pay you the amount by which
the Redetermined Payments Cap exceeds the Payment Cap, together with interest on such
difference at the applicable Federal rate (as defined in Section 1274(d) of the Code) (the
“Federal Rate”) from the original Payment due date to the date of actual payment of the
difference by Aetna.
	 
	 	(b)	 	If the aggregate value of the Redetermined Payments exceeds the Redetermined Payment
Cap by less than 10%, then, notwithstanding anything to the contrary, the amount of the
Redetermined Payments that you are entitled to receive and retain shall be reduced to the
amount of the Redetermined Payment Cap. In the event that the Redetermined Payments are
subject to reduction under this paragraph and any such portion of the Redetermined Payments
have no yet been paid to you, you shall have the right to designate which

	 	 	 	portion of such unpaid Redetermined Payments should be reduced or eliminated. If you have
previously received any Payments in excess of the Redetermined Payment Cap, such excess
Payments shall be deemed for all purposes to be a loan to you made on the date of receipt of
such excess Payments, which you shall have an obligation to repay to Aetna on demand,
together with interest on such amount at the applicable Federal rate (as defined in Section
1274(d) of the Code) from the date of your receipt of such excess Payments to the date of
repayment by you. Notwithstanding the foregoing, if any portion of such excess Payments
which is to be refunded to Aetna has been paid to any Federal, state or local tax authority,
repayment thereof shall not be required until actual refund or credit of such portion has
been made to you, and interest payable to Aetna shall not exceed interest received or
credited to you by such tax authority for the period it held such portion. In addition, if,
pursuant to a Final Determination, any such excess Payments are not deemed a loan and as a
result you are subject to Redetermined Excise Tax, then you shall be treated as if the
aggregate value of the Redetermined Payments exceeds the Redetermined Payment Cap by more
than 10% under paragraph 3(c) and you shall be entitled to the Supplemental Gross-Up
Payment, subject to all the attendant conditions set forth below.
	 
	 	(c)	 	If the aggregate value of the Redetermined Payments exceeds the Redetermined Payment
Cap by more than 10%, then the amount of the Redetermined Payments you are entitled to
receive and retain shall not be reduced and Aetna shall pay to you an additional payment (a
“Supplemental Gross-Up Payment”) in an amount such that after payment by you of all taxes
(including any interest and penalties imposed with respect to such taxes), including any
Redetermined Excise Tax, imposed on the Supplemental Gross-Up Payment you retain an amount
of the Supplemental Gross-Up Payment; provided that if you have previously received a
Gross-Up Payment, the amount of the Supplemental Gross-Up Payment shall be reduced by the
amount of the Gross-Up Payment you previously received, so that you will be fully
reimbursed, but will not receive duplicative reimbursements. If, however, the Excise

 

 

	 	 	 	Tax exceeds the Redetermined Excise Tax, you shall have an obligation to repay to Aetna.
Notwithstanding the foregoing, in the event any portion of the Gross-Up Payment to be
refunded to Aetna has been paid to any Federal, state or local tax authority, repayment
thereof shall not be required until actual refund or credit of such portion has been made
to you. You and Aetna shall mutually agree upon the course of action to be pursued (and
the method of allocating the expenses thereof) if your good faith claim for refund or
credit is denied.

	5.	 	Procedures With Respect to IRS Claims.
	 
	 	 	You shall notify Aetna in writing of any claim by the Internal Revenue Service relating to any
unpaid excise tax applicable to the Payments. Such notification shall be given as soon as
practicable but no later than twenty business days after you know of such claim and shall
apprise Aetna of the nature of such claim, any assessment under such claim and the date on which
such assessment is requested to be paid. You shall not pay such claim prior to the expiration
of the thirty day period following the date on which you give such notice to Aetna (or such
shorter period ending on the date that any payment of taxes with respect to such claim is due).
If Aetna notifies you in writing prior to the expiration of such period that it desires to
contest such claim, you shall:

	 	(a)	 	give Aetna any information reasonably requested by Aetna relating to such claim,
	 
	 	(b)	 	take such action in connection with contesting such claim as Aetna shall reasonably
request in writing from time to time including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by Aetna,
	 
	 	(c)	 	cooperate with Aetna in good faith in order effectively to contest such claim, and
	 
	 	(d)	 	permit Aetna to participate in any proceedings relating to such claim;

	 	 	provided, however, that Aetna shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and shall indemnify
and hold you harmless, on an after-tax basis, for any Excise Tax, Redetermined Excise Tax or
income tax, including interest and penalties with respect thereto, imposed as a result of such
representation and payment of costs and expenses. Without limitation on the foregoing, Aetna shall control all proceedings taken in connection with such
contest and, at its sole option, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of such claim and
may, at its sole option, either direct you to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner, and you agree to prosecute such contest to a
determination before any administrative tribunal, in a court of initial jurisdiction and in one
or more appellate courts, as Aetna shall determine; provided, however, that if Aetna directs you
to pay such claim and sue for a refund, Aetna shall advance the amount of such payment to you,
on an interest-free basis, and shall indemnify and hold you harmless, on an after-tax basis,
from any Excise Tax, Redetermined Excise Tax or income tax, including interest and penalties
with respect thereto, imposed with respect to such advance or with respect to any imputed income
with respect to such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of you

 

 

	 	 	with respect to which such
contested amount is claimed to be due is limited solely to such contested amount. Furthermore,
Aetna’s control of the contest shall be limited to issues with respect to which a Gross-Up
Payment would be payable hereunder and you shall be entitled to settle or contest, as the case
may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
	 
	 	 	If after the receipt by you of an amount advanced by Aetna pursuant to the foregoing, you become
entitled to receive any refund with respect to such claim, you shall (subject to Aetna’s
complying with the requirements of above with respect to any contestation of an excise tax
claim) promptly pay to Aetna the amount of such refund (together with any interest paid or
credited thereon by the taxing authority after deducting any taxes applicable thereto). If,
after the receipt by you of an amount advanced by Aetna hereunder, a determination is made that
you shall not be entitled to any refund with respect to such claim and Aetna does not notify you
in writing of its intent to contest such denial of refund prior to the expiration of thirty days
after such determination, then such advance shall be forgiven and shall not be required to be
repaid and the amount of such advance shall offset, to the extent thereof, the amount of the
Supplemental Gross-Up Payment required to be paid hereunder. The forgiveness of such advance
shall be considered part of the Supplemental Gross-Up Payment and subject to gross-up for any
taxes (including interest or penalties) associated therewith.
	 
	 	 	The terms of this document shall not be amended, modified or curtailed without your written
consent.

 

Aetna’s Employment Dispute Arbitration Program

Following are the provisions of Aetna’s Employment Dispute Arbitration Program:

	1.	 	Except as otherwise specified, all employment-related legal disputes between employees
and the Company will be submitted to and resolved by binding arbitration, and neither the
employee 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 employee becomes subject to this Program,
even if the facts and circumstances relating to the claim occurred prior to that date and
regardless of whether the employee or the Company previously filed a complaint/charge with
a government agency concerning this claim.
	 
	2.	 	For purposes of this Program, the “Company” includes Aetna Inc., its subsidiaries and
related companies, their predecessors, successors and assigns, and those acting as
representatives or agents of those entities. “Employee” includes current and former
employees of the Company.
	 
	3.	 	This Program 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 this Program applies must be submitted to the
binding arbitration process set forth in this Program.
	 
	4.	 	The employee and/or the Company may seek emergency or temporary injunctive relief from
a court in accordance with applicable law. However, after the court has issued a ruling
concerning the emergency or temporary injunctive relief, the employee and the Company shall
be required to submit the dispute to binding arbitration pursuant to this Program.
	 
	5.	 	Unless otherwise agreed, the arbitration will be administered by the American
Arbitration Association (the “AAA”) and will be conducted pursuant to the AAA’s National
Rules for the Resolution of Employment Disputes (the “Rules”), as modified in this Program
in effect at the time the request for arbitration is filed. For more information, visit the
AAA website .
	 
	6.	 	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 employee initiates a request for
arbitration or submits a counterclaim to the Company’s request for arbitration, the
employee shall be required to contribute One Hundred Dollars ($100.00) to those
administrative fees and costs, payable to the AAA at the time the employee’s request for
arbitration or counterclaim is submitted. The Company may increase the contribution amount
to no more than the maximum permitted under the AAA rules then in effect. In all cases, the
employee 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.
	 
	7.	 	The employee 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 employee or
the Company to pay some or all of the other’s legal fees, expenses, and costs, in
accordance with applicable law.
	 
	8.	 	Unless otherwise agreed, there shall be a single arbitrator, selected by the employee
and the Company from a list of qualified neutrals furnished by the AAA. If the employee and
the Company cannot agree on an arbitrator, one will be selected by the AAA.

 

 

	9.	 	Unless otherwise agreed, the arbitration hearing will take place in the city where the
employee works or last worked for the Company. If the employee and the Company disagree as
to the proper locale, the AAA will decide.
	 
	10.	 	The employee 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.
	 
	11.	 	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 have the authority to consider and decide dispositive motions (motions seeking a
decision on some or all of the claims or counterclaims without an arbitration hearing).
	 
	12.	 	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 employee and the Company.
	 
	13.	 	Unless otherwise agreed, the arbitrator’s decisions will be in writing with a brief
summary of the arbitrator’s opinion.
	 
	14.	 	The arbitrator’s decision is final and binding on the employee and the Company. After
the arbitrator’s decision is issued, the employee 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.
	 
	15.	 	If the employee 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 Program.
	 
	16.	 	If any provision of this Program is found to be void or otherwise unenforceable, in
whole or in part, this shall not affect the validity of the remainder of the Agreement. All
other provisions shall remain in full force and effect.

 

 

Questions and Answers about Aetna’s Employment Dispute Arbitration Program

	 	 	You are being asked to agree to use binding arbitration to resolve employment-related legal
disputes that may arise between you and the Company. The following questions and answers are
designed to provide additional information about Aetna’s Employment Dispute Arbitration Program.
Arbitration affects your legal rights and you may want to obtain legal advice before making your
decision.
	 
	1.	 	What is arbitration?
	 
	 	 	In arbitration, each side presents its position in a formal, confidential hearing to an
impartial, outside arbitrator whom they have selected. The process often involves the testimony
of witnesses, depositions, and the formal introduction of evidence. The arbitrator then makes a
final, binding decision.
	 
	2.	 	Why does Aetna want to use binding arbitration?
	 
	 	 	The Company’s goal is to resolve employment-related disputes between Aetna and its employees in
a fair, cost-effective and prompt manner. The Company believes binding arbitration will better
achieve those objectives than the traditional litigation process. Many companies, including a
number of our competitors (such as CIGNA, Wellpoint and United Healthcare) have implemented
binding arbitration programs in recent years.
	 
	3.	 	Does this mean that if I have an employment-related legal dispute with Aetna and it is not
resolved through less formal means, the dispute will not be decided by a judge or jury?
	 
	 	 	Yes. While some disputes are not subject to the arbitration provisions, all “covered” disputes
will be submitted to a neutral arbitrator who will use the American Arbitration Association’s
(AAA’s) National Rules for the Resolution of Employment Disputes, as modified by Aetna’s
Employment Dispute Arbitration Program and will make a final and binding decision. These Rules
are available online at the 

AAA Website, and we encourage you to read them carefully.
	 
	4.	 	Will the arbitrator have the authority to award the same type of monetary and non-monetary
relief as a judge or jury?
	 
	 	 	Yes. The arbitrator will be able to award the same types of relief as a judge or jury. Likewise,
the arbitrator cannot grant remedies that are unavailable in court.
	 
	5.	 	What if I disagree with the arbitrator’s decisions? Can I appeal to a court?
	 
	 	 	Except in very limited circumstances (for example, where fraud on the part of the arbitrator is
claimed), an arbitrator’s decision is final and binding on both the employee and the Company.
One reason why arbitration generally results in a more prompt outcome is that in most situations
the arbitrator’s decision is not subject to appeal by either party.
	 
	6.	 	Will I have as much time to file an arbitration claim as I would to file a lawsuit?
	 
	 	 	Yes. The time limits are the same as they would be in a court proceeding.
	 
	7.	 	Who pays for the arbitration costs?
	 
	 	 	Except for a nominal administration fee that must be paid by an employee at the time of filing
an arbitration claim with the AAA, Aetna pays the fees and expenses charged by the AAA,
including the neutral arbitrator’s compensation. Each party is required to pay fees assessed as
a result of its own delay, request for postponement/cancellation of a scheduled hearing or
failure to comply with an arbitrator’s rulings, etc.

 

 

	8.	 	If I decide to be represented by a lawyer in the arbitration proceeding, who pays my legal
fees?
	 
	 	 	Just as in the traditional legal process, each party may choose to be represented by counsel and
is responsible for payment of its own legal fees. However, the arbitrator has the same authority
as a judge to order one party to pay the other party’s legal fees and/or costs and expenses.
	 
	9.	 	What if I am already subject to an arbitration requirement in another employment agreement I
have with the Company?
	 
	 	 	The current agreement replaces any and all arbitration clauses contained in other employment
agreements you may have with the Company.
	 
	10.	 	Do the arbitration provisions cover only future claims I may have?
	 
	 	 	Any “covered” employment-related claims that you bring on or after the date you become subject
to Aetna’s Employment Dispute Arbitration Program is subject to arbitration, even if the facts
and circumstances surrounding the claim occurred earlier and regardless of whether you
previously filed a complaint/charge with a government agency concerning the claim.
	 
	11.	 	Do the arbitration provisions also cover employment-related claims that Aetna may have
against me?
	 
	 	 	Yes. The provisions are mutual and also require Aetna to arbitrate any “covered”
employment-related claims it may have against you.
	 
	12.	 	Do the arbitration provisions preclude me from filing a charge with the Equal Employment
Opportunity Commission (EEOC) or a similar agency?
	 
	 	 	No. The arbitration provisions do not preclude you from filing a charge with the EEOC or similar
agency. In fact, if filing a charge or complaint with a government agency would otherwise be
required before filing a lawsuit, the same requirement must be met before filing an arbitration
claim.
	 
	 	 	If I have additional questions as to how the arbitration program works, who should I contact?
	 
	 	 	You may contact Aetna HR Services at 1-800-238-6247.

 

 

Aetna Employment Dispute Arbitration Program

Acknowledgement

I acknowledge that:

	 	•	 	My offer of employment was contingent upon my agreement to use Aetna’s
mandatory/binding arbitration program rather than the courts to resolve
employment-related legal disputes. I agree to do so.
	 
	 	•	 	I received a description of Aetna’s Employment Dispute Arbitration Program and
accompanying Questions and Answers and was offered an opportunity to review these
materials.
	 
	 	•	 	I was advised that with respect to claims subject to arbitration, arbitration
replaces my right and the Company’s right to sue or participate in a lawsuit. I was
further advised of my right to obtain legal advice about arbitration before accepting
the terms of my job offer.

Employee
Name (print):
Joseph M. Zubretsky

Employee
Signature: /s/ Joseph M. Zubretsky

Date
Signed: February 6, 2007

Signature of Parent or Legal Guardian

If Applicant is a Minor:
 

Date
Signed:  

Complete all sections of this Acknowledgement form and return it to your manager for retention
in your personnel file.

 

 

NON-COMPETITION, NON-SOLICITATION, CONFIDENTIALITY AND ASSIGNMENT AGREEMENT

WHEREAS, I, Joseph M. Zubretsky, as an executive of Aetna Inc. or one of its subsidiaries or
affiliates (collectively, the “Company”), will be entrusted with knowledge of the Company’s
information and materials described below, and will be trained and instructed in the Company’s
particular operational methods; and

WHEREAS, I am desirous of being in the Company’s employment as an at-will employee;

NOW, THEREFORE, in consideration of my employment with the Company, the Company providing to me
Confidential Information as described below and other good and sufficient consideration, I hereby
covenant and agree as follows:

	 	1.	 	I covenant and agree that so long as I am employed with the Company and for a period of
twelve (12) months after my employment with the Company has been terminated for any reason,
whether with or without cause and whether voluntarily or involuntarily, I will not directly or
indirectly, (a) engage in the ownership (except less than 1% of the outstanding capital stock
of any publicly traded company) of, (b) become an employee of, or (c) act as a consultant or
contractor to, any competitor of the Company engaged in health care business (“Competitor”)
For purposes of Paragraph 1 of this Agreement “Competitor” shall mean the four companies
on a list provided by the Company to the Executive (the “Specified Entities”). The initial
list of Specified Entities shall be provided simultaneous with execution of this Agreement.
The Specified Entities may be changed by the Company from time to time (but shall never be
more than four) by delivering a new list to you, provided that any change in the list
delivered to you within 90 days prior to or at any time after termination of your employment
with the Company shall be null and void. Everywhere in this Agreement, a “Competitor” is
any company or organization that develops, administers, operates, offers or solicits offers
regarding medial, pharmacy, dental, behavioral health, group life, long-term care and
disability, medical management, networks, insurance or plans to employers, employees or
individuals. The Company does not intend to enforce the restrictions in this paragraph
to the extent (a) such enforcement would violate applicable law or (b) the restrictions are
invalid or void under applicable law.
	 
	 	2.	 	I covenant and agree that for a period of twenty-four (24) months after my employment with
the Company has been terminated for any reason, whether with or without cause and whether
voluntarily or involuntarily, I will not directly or indirectly (a) solicit or aid in the
solicitation of any employee of the Company, (b) solicit or aid in the solicitation on behalf
of a Competitor of any customer of the Company, provided, however, that this limitation shall
only apply with respect to a product or service which is in competition with a product or
service of the Company or an affiliate either directly or indirectly, or (c) induce any health
care supplier or provider, broker or agent of the Company to cease or curtail providing
services to the Company. The company does not intend to enforce the restrictions in this
paragraph to the extent (a) such enforcement would violate applicable law or (b) the
restrictions are invalid or void under applicable law.
	 
	 	3.	 	The Company agrees to provide me with access to the Company’s trade secrets, confidential
information, and proprietary materials which may include but is not limited to the following
categories of information and materials: methods, procedures, computer programs, databases,
customer lists and identities, provider lists and identities, employee

 

 

	 	 	 	lists and identities,
processes, premium and other pricing information, research, payment rates, methodologies,
contractual forms, and other information which is not publicly available generally and which
has been developed or acquired by the Company with considerable effort and expense
(“Confidential Information”). I covenant and agree to hold all of the foregoing trade
secrets, confidential information and proprietary materials in the strictest confidence and
shall not disclose, divulge or reveal the same to any person or entity during the term of my
employment with the Company or at any time thereafter.
	 
	 	4.	 	I understand that I am an at-will employee and that either I or the Company may terminate our
employment relationship at any time, with or without cause or notice. Upon such termination,
and prior to such termination upon request of the Company, I shall immediately return to the
Company all Company property, documentation, trade secrets, confidential information and
proprietary materials in my possession, custody or control, and shall return any copies
thereof. After termination of my employment with the Company, I further agree to cooperate
reasonably with all matters requested by the Company within the scope of my employment with
the Company.
	 
	 	5.	 	The purpose of this Agreement, among other things, is to protect the Company from unfair or
inappropriate competition and to protect its trade secrets, confidential information and
business relationships. I agree that if the scope of enforcement of this Agreement is ever
disputed, a court or other competent trier of fact may modify and enforce it to the extent it
believes is lawful and appropriate.
	 
	 	6.	 	I acknowledge that all original works of authorship that are made by me (solely or jointly
with others) within the scope of my employment and 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). I further acknowledge that, while employed by the Company, I may develop ideas,
inventions, 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. To the extent any such works may be patentable, I agree that the Company
may file and prosecute any application for patents in my name and that I will, on request,
assign to the Company (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.
	 
	 	7.	 	I acknowledge that compliance with this Agreement is necessary to protect the business and
good will of the Company and that any actual or prospective breach will cause injury or damage
to the Company which may be irreparable and for which money damages may not be adequate. I
therefore agree that if I breach or attempt to breach this Agreement, the Company shall be
entitled to obtain temporary, preliminary and permanent equitable relief, without bond, to
prevent irreparable harm or injury, and to money damages, together with any and all other
remedies available under applicable law. I understand that I shall be liable to pay the
Company’s reasonable attorneys’ fees and costs in any successful action to enforce this
agreement.
	 
	 	8.	 	Any controversy or claim arising out of or relating to this Agreement or the breach,
termination, or validity thereof, except for temporary, preliminary, or permanent injunctive
relief or any other form of equitable relief, shall be settled by binding arbitration
administered by the American Arbitration Association (“AAA”) and conducted pursuant to

2

 

	 	 	 	the AAA’s National Rules for Dispute Resolution, as modified in Aetna’s Employment Dispute
Arbitration Program in effect at the time the request for arbitration is filed.
	 
	 	9.	 	This Agreement shall be construed in accordance with the laws of the State of Connecticut. I
hereby irrevocably consent to the personal jurisdiction of the courts of the State of
Connecticut, it being acknowledged that the Company maintains its headquarters in said
location.
	 
	 	10.	 	This Agreement constitutes the entire understanding and agreement between the parties with
respect to the subject matter hereof, and no verbal or other statements, inducements or
representations have been made or relied upon by any party. No modifications or change hereby
shall be binding upon any party unless in writing executed by all parties.
	 
	 	11.	 	I acknowledge that the Company is relying upon my foregoing commitments and obligations in
revealing trade secrets and confidential information to me, in making any future annual bonus
or salary increase and/or any other payments to me, and in otherwise employing me.

IN WITNESS WHEREOF, the parties, intending to be legally bound, state that they understand this
agreement, enter into it freely, and have duly executed it below.

	 	 	 	 	 	 	 	 	 	 	 
	Executed by:	 	 	 	Accepted by:	 	 
	Joseph M. Zubretsky	 	 	 	AETNA INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/
Joseph M. Zubretsky
	 	 	 	By:	 	/s/ Kenneth Meyer	 	 	 	 
	 	 	 	 	 	 	 	 	 
	(Signature)

	 	 	 	 	 	Kenneth Meyer	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Joseph
M. Zubretsky
	 	 	 	 	 	January 25, 2007	 	 
	 	 	 	 	 	 	 	 	 
	(Printed Name)

	 	 	 	 	 	(Date)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

(Title)

	 	 	 	 	 	 	 	 	 	 
	February
6, 2007
	 	 	 	 	 	 	 	 	 	 
	 

(Date)

	 	 	 	 	 	 	 	 	 	 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]