Document:

EX-10.12

 

Exhibit 10.12

AMENDMENT 2 TO EMPLOYMENT AGREEMENT

     AMENDMENT dated as of January 3, 2006 (“Amendment”) to that certain Employment Agreement
(“Agreement”) dated as of September 6, 2000 by and between Aetna Inc., a Pennsylvania corporation,
and John W. Rowe, M.D. (“Executive”) as amended as of June 27, 2003 (certain capitalized terms used
herein being defined in Article 7 of the Agreement).

     WHEREAS, the Board and the Executive desire to plan for a successful transition of
responsibilities and to amend the Agreement on the terms and conditions set forth below;

     WHEREAS, the Company and Executive desire to enter into this Amendment embodying the terms of
such extension and amendment;

     NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements of
the parties set forth in this Amendment, and of other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally
bound, agree as follows:

     1. Section 1.01 of the Agreement shall be deleted and replaced in its entirety as follows:

“SECTION 1.01. Position. On February 14, 2006 Executive’s title and job
responsibilities shall be that of an executive officer Chairman of the Board.”

     2. Section 2 of the Amendment dated as of June 27, 2003 shall be deleted and replaced in its
entirety as follows:

“Effective July 7, 2003, Executive’s Base Salary as referred to in Section 2.01 shall
be increased by $100,000 to the annual rate of $1,100,000, payable in accordance with
the payroll and administrative practices of the Company from time to time; provided,
however, that such increase and any future increases shall be mandatorily deferred
(but nevertheless remain eligible for benefits) until the later of (i) the date on
which said amounts would be deductible by the Company under IRC Section 162(m), and
(ii) the date or dates elected by Executive prior to the effective date of such
increase (subject to the requirements of IRC Section 409A as applicable), but with
respect to any salary above $1,000,000 earned on or after January 1, 2005, no date
earlier than six months following Executive’s termination of employment, and said
deferrals shall earn a rate of return in accordance with the Company’s deferral
program applicable to the Company’s senior executive officers in effect from time to
time.”

     3. Section 6.15(b) of the Employment Agreement shall be modified as follows: each reference
to “two years after the termination of the Employment Term” shall be replaced with the phrase
“three years after the termination of the Employment Term”, so that the two year nonsolicitation
provisions contained therein shall be extended to three years. Similarly, Section 6.15(c)(i) of
the Employment Agreement shall be modified to replace the reference to “one year after the
termination of the Employment Term” with the phrase “three years after the termination of the
Employment Term”, so that the one year non-compete provision contained therein shall be extended to
three years. In consideration of these extensions, the Company shall pay the Executive on each of
first, second and third anniversaries of his termination of employment due to “Retirement” the
amount of $150,000. The phrase “Retirement” as used herein shall mean termination of employment by
Executive provided that the Executive’s age and completed years of service total 65 or more points
at such termination. In addition, if Executive’s Consultancy pursuant to Section 5 of the
Consulting Agreement (described below) is extended for either one or two years past the initial
three-year term of the consultancy, the Executive shall be entitled to an additional $150,000
(payable on the fourth and fifth anniversary of his termination of employment due to Retirement) in consideration for each year in which the nonsolicitation and non-compete covenants contained in

Page 1

 

Section 6.15(b) and 6.15(c)(i) of the Employment Agreement are renewed concurrent with
the renewal (if any) of the Consultancy term. Notwithstanding anything herein to the contrary,
should the non-compete agreement described in this Section 3 be terminated prior to the time any
annual $150,000 payment is due, the Company shall pay the Executive a pro-rated amount for each
full month for which the Executive was subject to the non-compete during such annual period. For
avoidance of doubt, the parties agree that this Section 3 of the Amendment 2 to the Employment
Agreement, together with Sections 6.15 and 6.16 of the Employment Agreement, shall survive the
Executive’s termination of employment and expiration of the Employment Term.

     4. Effective upon the termination of the Executive’s employment due to Retirement, the
Company agrees to enter into a Consulting Agreement on the terms, conditions and in the form
attached hereto as Exhibit A which is incorporated herein and made a part hereof.

     5. In the event the Executive terminates his employment due to Retirement prior to the end of
a fiscal year, he shall be entitled to a pro-rata annual bonus for performance related to such
fiscal year, calculated (consistent with historical practices) and paid at the same time as the
Company makes such calculations and payments to other senior executives of the Company.

     6. Upon Executive’s Retirement, the parties agree that all rights and obligations contained
in the Agreement shall be extinguished, except as provided in this Amendment 2 and as provided in
Sections 5.01 (Successors), 5.02 (Assignment by Executive), 6.02 (Legal Fees and Expenses), 6.03
(Arbitration), 6.05 (Non-Exclusivity of Benefits), 6.07 (Mitigation), 6.12 (Governing Law), 6.14
(Indemnification), 6.15 (Nondisclosure, Nonsolicitation, Noncompete, and Nondisparagement) and 6.15
(Material Inducement; Specific Performance), all of which shall survive the Executive’s termination
of employment and expiration of the Employment Term until the later of (i) the three year
anniversary from date of Executive’s termination of employment, and (ii) the expiration of the
Consultancy term.

     7. Notwithstanding anything to the contrary, to the extent necessary to comply with Section
409A of the Internal Revenue Code, payments to be made following termination of employment and
entry into the Consulting Agreement shall not be paid until the six month anniversary of the
Consultant’s termination of employment.

     Except as modified above, all of the provisions, terms and conditions of the Agreement remain
in full force and effect.

     IN WITNESS WHEREOF, the Company and Executive have executed this Amendment, to be effective as
of the day and year first written above.

	 	 	 	 	 	 	 	 	 
	JOHN W. ROWE, M.D.	 	 	 	AETNA INC.
	 
	 	 	 	 	 	 	 	 
	/s/ John W. Rowe
 

	 	 
	 	By:
	 	/s/ Elease E. Wright
 

Elease E. Wright
	 	 
	 

	 	 	 	 	 	Title: Senior Vice President HR	 	 

Page 2

 

Exhibit A: Form of Consulting Agreement

Exhibit A

CONSULTING AGREEMENT

     This Consulting Agreement (this “Agreement”) is made as of the                      day of                     , 2006,
by and between Aetna Inc. (“Company”) and John W. Rowe, M.D. (“Consultant”). The parties hereto
agree as follows:

     1. Engagement. Company hereby engages Consultant and Consultant hereby agrees to
render at the request of the Company’s Chief Executive Officer or Board of Directors, upon
reasonable notice, independent consulting services for Company on matters of an executive and/or
high level nature, including but not limited to design and analysis of Company’s experience with
various products and strategies including consumer-directed health plans, Aexcel networks, Chairman
initiatives, Medicare, pharmaceutical programs, wellness programs, and other business matters as
agreed by the parties. At the Company’s request, Consultant will collaborate with the Company on
presentation and publication of the results of these analyses for use by the Company, internally or
externally. In addition, at the Company’s request, Consultant shall serve as a director of the
Aetna Foundation, Inc. and continue to participate in specific community activities, including
Board-related service, as requested by Company and agreed to by Consultant. In this engagement and
all activities hereunder, Consultant shall serve as an independent contractor and not an employee
of Company, as further explained in Section 6 below.

     2. Term. The term of this Agreement shall begin as of [                    , 2006] and
shall terminate on [                    , 2009], unless terminated earlier or extended pursuant to
Section 5 of this Agreement.

     3. Compensation. As compensation for all services rendered by Consultant under this
Agreement, Company shall pay Consultant at a per diem rate of $4,000 per day and at $2,000 per
half-day for consulting services excluding any community-related efforts or service as a board
director of a charitable or not-for-profit entity, subject to the provisions of Section 5 of this
Agreement. All such compensation shall be payable without deduction, including no deduction for
federal income, social security, or state income taxes. All applicable taxes shall be the
responsibility of Consultant. Company also shall pay all travel-related expenses of Consultant for
such consulting services including all community-related efforts performed at Company’s and/or
Aetna Foundation Inc.’s request. In connection with any consulting assignment hereunder, (i)
Consultant shall have full access (on the same basis then applicable to senior executives of the
Company) to the Company’s travel facilities (e.g., car, driver, aircraft and helicopter services),
(ii) Company shall provide an office with appropriate support services for Consultant at Company’s
facilities in either New York or Boston (at Consultant’s election), unless Consultant assumes
another professional position that provides office and support services, provided, however, that if
Company does not maintain facilities in the city in which Consultant desires to work, it shall
provide Consultant facilities at another location in such city, and (iii) Company shall provide
Consultant with computers (including upgrades), software, printers, monitors and access to
information technology and communications support staff (on the same basis as such items and
support are made available to senior executives of the Company) in his office and at his two
principal residences.

     4. Performance of Duties. Consultant shall render services conscientiously and shall
devote his best efforts and abilities thereto, at such times during the term hereof, and in such
manner, as Company and Consultant shall mutually agree, not to exceed 25 full days per calendar
quarter, it being acknowledged that Consultant’s services shall be performed at such places and at
such times as are reasonably convenient to Consultant, upon reasonable notice. Consultant shall
observe all policies and directives promulgated from time to time by Company.

Page 3

 

     5. Termination. This Agreement will terminate by either party upon reasonable notice
to the other. This Agreement also will terminate on Consultant’s death or, upon Consultant’s
acceptance of an academic or government position, upon Consultant’s request. The term of this
Agreement may be extended for two additional one-year periods on the same terms and conditions upon
mutual agreement of Consultant and Company. Consultant’s obligations under Section 7 (Confidential
Information), Section 8 (Return of Confidential Information and Other Company Property), Section 9
(Rights of Authorship), Section 10 (Remedy), Section 11 (Arbitration) and Section 12
(Miscellaneous) shall survive termination hereof.

     6. Independent Contractor. It is expressly agreed that Consultant is acting as an
independent contractor in performing services hereunder. Company shall carry no workers’
compensation insurance or any health or accident insurance (other than standard Aetna retiree
medical care benefits to which the Consultant is otherwise entitled) to cover Consultant. Company
shall not pay any contributions to Social Security, unemployment insurance, federal or state
withholding taxes, nor provide any other contributions or benefits that might be expected in an
employer-employee relationship. Company shall, however, pay all expenses associated with the
arrangement contemplated herein, including but not limited to advice, consulting, negotiation and
preparation of documents memorializing such arrangement.

     7. Confidential Information. Consultant desires to act as a consultant to Company
and he understands and agrees that his duties for the Company in the past have required, and his
consulting duties may require, access to Confidential Information of a competitive nature, which
Company makes available only to select persons who have a need to know such confidential
information, and/or information subject to the attorney-client and work product privileges.
Consultant understands and agrees that for purposes of this Agreement, “Confidential Information”
includes all trade secrets and all information furnished by Company to Consultant, or to which
Consultant gains access during the course of his or her consulting relationship with Company, which
is either non-public, confidential or proprietary in nature, including, but not limited to
financial statements, client lists or information, supplier lists or information, subcontractor
lists or information, prospect lists or information, information pertaining to Company’s channels
of distribution, marketing, work product, pricing policy and records, sales representative
commission policy, sales volume by products, customer or geographic area, personnel history,
accounting procedures, invoice forms, contracts, leases, business plan, information about the
structure and marketing of the Company’s products and policies, revenue and/or commission
information, commission percentages, rating discounts and/or client costs, products, inventions,
services, pricing, databases, lead generation sources, debt information, employment manuals,
employee benefit cards, employee benefit statements, computer systems, software, computer hardware,
computer codes, passwords, programs and formula, technology, designs, secret processes, proprietary
or technical information, procedures or manuals, trademarks or copyrighted material in use or under
consideration for use, together with analyses, proposals, compilations, forecasts, studies, or
other documents or work product prepared by Company, its agents, representatives (including
attorneys, accountants and financial advisors) or employees which contain or otherwise reflect such
information. Consultant will not retain, use or disclose, directly or indirectly, any of Company’s
Confidential Information. Consultant recognizes that this Confidential Information is a unique
asset of Company, developed and perfected over a considerable time and at substantial expense to
Company and the disclosure of which may cause injury, loss of profits and loss of goodwill to
Company. Consultant agrees to protect the confidentiality of all Confidential Information during
the term of this Agreement and thereafter. Consultant agrees to keep all documents containing or
referring to Confidential Information in secure locations and not to duplicate, use or reveal to
third parties any Confidential Information except as necessary for the business purposes of
Company. Consultant agrees to inform all other persons to whom the Confidential Information might
be disclosed or made available of Company’s proprietary interest and of the recipient’s obligations
under this Agreement and to take such other protective measures as may be or become reasonably
necessary to preserve the confidentiality of such Confidential Information. Notwithstanding the
foregoing, however, “Confidential Information” shall not include such information that the
Consultant is required by law or a governmental agency to disclose, or information that has come
into the public domain by means other than breach of this Agreement.

Page 4

 

     8. Return of Confidential Information and Other Company Property. Consultant
acknowledges that all papers, photographs and apparatus related to the business of Company,
including those prepared or made by Consultant, including but not limited to the Confidential
Information, shall be and remain at all times the property of Company. When the consulting
relationship with the Company terminates for any reason, or upon request by Company, Consultant
will promptly deliver (within five calendar days) to Company all of Consultant’s files and copies
thereof and other property of Company in the Consultant’s possession, including but not limited to
any security pass or ID card, pagers, voice mail passwords or passcodes, company credit card, keys,
computer disks and software, work product, brochures or customer data, all originals and copies of
the Confidential Information and all originals and copies of documents relating to the Confidential
Information.

     9. Rights of Authorship. Consultant acknowledges that all original works of
authorship that are made by him (solely or jointly with others) within the scope of this Agreement
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).

     10. Remedy. Consultant understands that Company would not have any adequate remedy at
law for the material breach or threatened breach by the Consultant of Sections 7 (Confidential
Information), 8 (Return of Confidential Information and Other Company Property) or 9 (Rights of
Authorship) of this Agreement, and agrees that in the event of any such material breach or
threatened breach, Company may, in addition to the other remedies which may be available to it,
file a suit in equity to enjoin Consultant from the breach or threatened breach of such
covenant(s).

     11. Arbitration. Any matter, controversy or claim arising out of or relating to this
Agreement or to any breach of this Agreement, except claims set forth in Section 10 of this
Agreement, as to which Company has elected to seek a court remedy, shall be settled by arbitration
before one arbitrator in accordance with the Commercial Arbitration Rules of the American
Arbitration Association, and judgments on the award rendered by the arbitrators may be entered in
any court having jurisdiction thereof. Each party shall pay: the fees of his or its attorneys;
the expenses of his or its witnesses; and all other expenses connected with presenting his or its
case. Other costs of the arbitration, including the cost of any record or transcripts of the
arbitration hearing, administrative fees, the fees of the arbitrator, and all other fees and costs
shall be borne equally by the parties.

     12. Miscellaneous.

          (a) Notices. Any notice required or permitted to be given under this Agreement shall
be sufficient if in writing and if sent by registered or certified mail to Company or Consultant at
the address set forth below to such other address as they shall notify each other in writing.

If to Company:

Chief Executive Officer

Aetna Inc.

151 Farmingdale Avenue

Hartford, CT 06156

With a copy to:

General Counsel

Aetna Inc.

151 Farmington Avenue

Hartford, CT 06156

          If to Consultant: at Consultant’s last known address as reflected on the books and records of
the Company

Page 5

 

With a copy to:

Pearl Meyer & Partners

445 Park Avenue

New York, NY 10022

          (b) Assignment. This Agreement shall be binding upon and inure to the benefit of
Company and its successors and assigns. This Agreement shall not be assignable by Consultant.

          (c) Applicable Law. This Agreement shall be construed in accordance with the laws of
the State of Connecticut in every respect, without regard to its rules regarding conflicts of law.

          (d) Headings. Section headings and numbers herein are included for convenience of
reference only and this Agreement is not to be construed with reference thereto. If there is any
conflict between such numbers and headings and the text hereof, the text shall control.

          (e) Severability. If for any reason any portion of this Agreement shall be held
invalid or unenforceable, the parties agree that it is their intent that such provision shall be
enforced to the maximum extent possible under applicable law, and that the court or arbitrator
shall reform such provision to make it enforceable in accordance with the intent of the parties,
and that notwithstanding such invalidity, unenforceability or reformation of any provision, the
remaining provisions of this Agreement shall remain in full force and effect.

          (f) Entire Agreement. This Agreement contains the entire agreement of the parties
with respect to the subject matter hereof and supersedes all previous agreements between the
parties, provided, however, that the parties acknowledge that certain provisions of the Employment
Agreement dated as of September 6, 2000, as amended, may remain in effect as provided in such
agreement and amendments thereto, during all or a portion of the term of this Agreement. No
officer, employee, or representative of Company has any authority to make any representation or
promise in connection with this Agreement or the subject matter hereof that is not contained
herein, and Consultant represents and warrants that he has not executed this Agreement in reliance
upon any such representation or promise. No modification, extension or renewal of this Agreement
shall be valid unless made in writing and signed by the parties hereto.

          (g) Waiver of Breach. The waiver by Company of a breach of any provision of this
Agreement by Consultant shall not operate or be construed as a waiver of any subsequent breach by
Consultant.

          (h) Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together shall constitute one agreement.

	 	 	 	 	 	 	 	 	 	 	 
	Aetna Inc.	 	 	 	John W. Rowe, M.D.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Its:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 

	 	 
	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

Page 6EX-10.14

 

Exhibit 10.14

AMENDMENT

TO

EMPLOYMENT AGREEMENT

     AMENDMENT (“Amendment”) made as of this 27th day of January 2006 to the Amended and Restated
Employment Agreement dated as of December 5, 2003 (the “Employment Agreement”) by and between Aetna
Inc. (“Aetna”), a Pennsylvania corporation and Ronald A. Williams (“Executive”).

     WHEREAS, Aetna and Executive have previously entered into the Employment Agreement; and

     WHEREAS, Aetna and Executive desire to amend the Employment Agreement.

     NOW, THEREFORE, effective February 14, 2006, the Employment Agreement is hereby amended as
follows:

     1. Sections 1.01(a) and (b) of the Employment Agreement are amended in their entirety to read
as follows:

“(a) On February 14, 2006 (the “Effective Date”), Executive shall
assume the position, duties and responsibilities as the Company’s
President and Chief Executive Officer.

(b) In such position, Executive shall have the duties and authority
commensurate with such position and such other duties and authority,
consistent with such position, as shall be assigned to him from time
to time by the Company’s Board of Directors (the “Board”). Executive
shall report only to the Board.”

     2. Section 1.02 of the Employment Agreement is amended in its entirety to read as follows:

     “SECTION 1.02. Term. Executive shall continue to be employed by the Company for a period
commencing on the Effective Date and, subject to earlier termination or extension as provided
herein, ending on December 31, 2008 (the “Employment Term”). On December 31, 2008 and on December
31st of each subsequent year up to and including December 31, 2013, the Employment Term shall
automatically be extended for one additional year (but not beyond Executive’s sixty-fifth (65th)
birthday) unless not later than 90 days prior to such date the Company or Executive shall have
given written notice of its or his intention not so to extend the Employment Term. Unless earlier
terminated, the Employment Term shall end on Executive’s sixty-fifth (65th) birthday.”

     3. Section 2.01 of the Employment Agreement is amended in its entirety to read as follows:

     “SECTION 2.01. Base Salary. Starting on the Effective Date, the Company shall pay Executive
an annual base salary (the “Base Salary”) at the initial annual rate of $1,100,000, payable in
equal monthly installments or otherwise in accordance with the payroll and personnel practices of
the Company from time to time. The Base Salary shall be reviewed annually by the Compensation
Committee of the Board (the “Committee”) for possible increase in the sole discretion of the
Committee. Executive’s Base Salary, as in effect from time to time, may not be reduced by the
Company without Executive’s consent, except in the event of a ratable reduction affecting all
senior officers of the Company. Any amount of Base Salary in excess of $1,000,000 for a fiscal
year shall be mandatorily deferred on an annual basis and in compliance with Code Section 409A (but
nevertheless remain eligible for benefits, if otherwise eligible) until the fiscal year after the
fiscal year in which Executive’s employment terminates; provided, however, to the extent
permissible under Code Section 409A without causing any additional tax on Executive under Code
Section 409A, if the Company reasonably anticipates that the Company’s tax deduction with respect
to such payment would be limited or eliminated by application of Code Section 162(m), such payment
shall be delayed to the earliest date in which the Company anticipates that its tax deduction for
such payment will not be limited or eliminated. Any deferral of Base Salary under this Section
2.01 shall earn a rate of return in accordance with the Company’s deferral program applicable to
the Company’s senior executive officers in effect from time to time.”

Page 1

 

     4. Section 2.02(a) of the Employment Agreement is amended in its entirety to read as follows:

     “(a) With respect to each fiscal year all or part of which is contained in the Employment
Term, Executive shall be eligible to participate in the Company’s annual incentive plan, with a
target bonus opportunity of 150% of Base Salary, a threshold bonus opportunity of 75% of Base
Salary and a maximum bonus opportunity of 300% of Base Salary or such other greater amount as the
Committee may determine in its sole discretion; provided, however, that in no event shall
Executive’s bonus payment exceed the maximum limit prescribed under the Company’s annual incentive
plan.”

     5. Section 2.03 of the Employment Agreement is amended to add a new subsection (e) as follows:

     “(e) With respect to all grants on or after the Effective Date under any Company equity or
incentive plan, including without limitation, the Company’s current long-term incentive plan, on
Executive’s termination of employment (other than for Cause) Executive will be deemed to have
satisfied any and all criteria required to be considered “retired” (with the maximum benefit
payable under any such grant as a retiree, including based on age or service) for purposes of any
such grants. In any event, all such vested Awards that are exercisable shall remain exercisable
under the earlier of (i) the last date on which such Award would otherwise have been exercisable,
and (ii) the second anniversary of Executive’s termination of employment.”

     6. Article 2 of the Employment Agreement is amended to add a new Section 2.05 as follows:

     “SECTION 2.05. Restricted Stock Unit Grant. The Company shall cause the grant to Executive
of 75,000 restricted stock units on the Effective Date, which units shall vest, subject to
Executive’s continued employment with the Company, in three equal annual installments commencing on
the first anniversary of the Effective Date; provided that the units shall fully vest on a
Qualifying Event. Such grant shall include dividend equivalent rights (invested into additional
restricted stock units) and distribution of shares of the Company’s common stock registered under a
Registration Statement on Form S-8 (that is kept current) with the Securities and Exchange
Commission representing the vested restricted stock units shall be made to Executive six months
following termination of employment; provided, however, to the extent permissible under Code
Section 409A without causing any additional tax on Executive under Code Section 409A, if the
Company reasonably anticipates that the Company’s tax deduction with respect to such payment would
be limited or eliminated by application of Code Section 162(m), such payment shall be delayed to
the earliest date in which the Company anticipates that its tax deduction for such payment will not
be limited or eliminated.“

     7. Section 3.03(c) of the Employment Agreement is amended to replace “second anniversary” with
“third anniversary.”

     8. Article 3 of the Employment Agreement is amended to add a new Section 3.06 as follows:

     “SECTION 3.06. Six-Month Delay Distribution Requirement. Notwithstanding any provision of
this Agreement to the contrary, if any payment or benefit to be made hereunder in connection with a
termination of Executive’s employment does not comply with the “short-term deferral” exception
under Proposed Treasury Regulation Section 1.409A-1(b)(4) or any other rule or regulation exempting
such payment from the six-month delay required under Code Section 409A(B)(i), without causing such
amounts or other amounts to be subject to additional tax under Code Section 409A, (a) such payment
shall be delayed until the earlier of (i) the date which is six months after Executive’s
termination of employment for any reason other than death or (ii) the date of Executive’s death,
and (b) the full cost of any benefit shall be paid by Executive during such period and the Company
shall promptly reimburse Executive for said costs on the earlier of the date set forth in
subsections (a)(i) or (ii) of this Section 3.06. The provisions of this Section 3.06 shall only
apply if required to comply with Code Section 409A.”

     8. Section 6.02 of the Employment Agreement is amended to add the following sentence at the
end of the section:

     “In addition, the Company shall pay the reasonable legal fees and expenses associated with
entering into the amendment to this Agreement dated January 27, 2006.”

Page 2

 

     9. Section 6.15 of the Employment Agreement is amended to insert a new subsection (g) as follows:

     “(g) With respect to all awards of compensation after the Effective Date, including equity
compensation or benefits, notwithstanding anything to the contrary contained in the governing terms
of such compensation award(s), Executive’s compliance with the restrictive covenants contained in
Section 6.15 of this Agreement shall be deemed to be compliance in all respects with any and all
restrictive covenants contained in, incorporated by or otherwise referred to in any document
governing the terms of such compensation award(s).”

     10. Article 6 of the Employment Agreement is amended to insert a new Section 6.17 as follows:

     “SECTION 6.17. Code Section 409A. If any provision of this Agreement (or of any award of
compensation, including equity compensation or benefits) would cause Executive to incur any
additional tax or interest under Code Section 409A or any regulations or Treasury guidance
promulgated thereunder, the Company shall, after consulting with Executive, reform such provision
to comply with Code Section 409A; provided that the Company agrees to maintain, to the maximum
extent practicable, the original intent and economic benefit to Executive of the applicable
provision without violating the provisions of Code Section 409A.”

     IN WITNESS WHEREOF, the undersigned has caused this Amendment to be executed this 27th day of
January, 2006 .

	 	 	 	 	 	 	 
	 	 	AETNA INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/: John W. Rowe	 	 
	 	 	 	 	 
	 

	 	Title:
	 	Chairman and CEO	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 	 	     /s/: Ronald A. Williams	 	 
	 	 	 	 	 
	 	 	Ronald A. Williams	 	 

Page 3

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