Document:

ex10-2.htm

    EXHIBIT
      10.2

    

    EMPLOYMENT
      AGREEMENT

    

    

    THIS
      EMPLOYMENT AGREEMENT (“Agreement”) is effective as of July 25, 2007, and is
      among CITY HOLDING COMPANY, a West Virginia corporation (the “Company”), CITY
      NATIONAL BANK OF WEST VIRGINIA, a national banking association
      (“City National”), and Craig G. Stilwell (“Employee”). The Company and City
      National are referred to collectively herein as the “Employer.”

     

    Recitals:

     

    The
      Company desires to employ Employee as its Executive Vice-President and City
      National desires to employ Employee as its Executive
      Vice-President.

     

    This
      employment agreement replaces and supersedes the Amended and Restated Employment
      Agreement entered into between the Employer and Employee on May 15, 2001 as
      amended on November 18, 2003, as well as the Amendment to the Employment
      Agreement signed on February 25, 2005, pursuant to which the Employee became
      the
      Executive Vice-President of the Company and City National. That Employment
      Agreement currently has a term which ends February 15, 2008.

     

    Employee
      is willing to make his services available to Employer on the terms and subject
      to the conditions set forth herein.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and promises contained
      herein and other good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties agree as follows:

     

    Agreement:

     

    1.  Employment.
      Employee is employed as Executive Vice-President of the Company and City
      National. Employee shall have such duties and responsibilities as are
      commensurate with such positions. Employee accepts and agrees to such
      employment, subject to the general supervision and pursuant to the orders,
      advice and direction of Employer’s President and Chief Executive Officer.
      Employee shall perform such duties as are customarily performed by one holding
      such positions in other same or similar businesses or enterprises as that
      engaged in by Employer.

     

    2.  Term
      of
      Employment. The term of this Agreement shall commence on July 25, 2007
      and shall terminate on July 31, 2009, unless extended. On each monthly
      anniversary date following July 31, 2007, this Agreement will be automatically
      extended for an additional month; provided, however, that on any one month
      anniversary date following July 31, 2007 either Employer or Employee
      may serve notice to the other party to fix the term to a definite two year
      period from the date of such notice and, in such event, no further automatic
      extensions will occur. The term of this Agreement as it may be extended pursuant
      to this Section 2, or as it may be shortened in accordance with Section 5 or
      Section 6, is referred to as the “Term.”

     

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

    3.  Compensation.

     

    (a)  For
      all
      services rendered by Employee to Employer under this Agreement, Employer shall
      pay to Employee a minimum annual salary at a rate not less than $212,000 or
      as
      it has been periodically adjusted, payable in accordance with the payroll
      practices of Employer applicable to its officers. The Company and/or City
      National may make such payments as well as any other payments provided for
      in
      this Agreement but, regardless of who is the payor, both the Company and City
      National shall be jointly and severally liable for such payments. Employee’s
      annual salary shall be adjusted upward annually reflecting the Company’s
      performance, compensation levels for peer institutions, and changes in the
      scale
      and scope of business activities of the Company under Employee’s
      leadership.

     

    (b)  Employee
      shall be paid “incentive compensation” at the end of each of Employer’s fiscal
      years which occurs in whole or in part during the Term based on Employer’s
      Return on Tangible Equity (“ROTE”) for such fiscal year. For purposes of this
      Agreement, “Return on Tangible Equity” shall mean Net Income divided by Tangible
      Equity. For purposes of this Agreement, Tangible Equity shall mean Stockholder’s
      Equity less Goodwill and Other Intangibles. If ROTE is at least 14%, such
      incentive compensation shall be payable as follows:  If Employer’s
      ROTE is 14%, Employee shall receive “incentive compensation” of 20% of
      Employee’s annual salary. If ROTE is greater than 14%, Employee shall receive
“incentive compensation” of 20% of his annual salary, plus an additional 5% of
      annual salary for each 1% increase in ROTE over 14%. If ROTE results in a
      fraction of 1%, then the “incentive compensation” shall be calculated based on
      the formula set forth above through the whole number of the percentage, plus
      the
      fractional portion of ROTE times 5%. As a result, the following table provides
      some examples of the “incentive compensation” earned for various levels of
      ROTE:

     

    
      	 	
              Incentive
                Compensation as a

            
	
              Return
                on Tangible Equity

            	
              Percentage
                of Annual Salary

            
	 	 
	
              14%

            	
              20%

            
	
              15%

            	
              25%

            
	
              16%

            	
              30%

            
	
              17%

            	
              35%

            
	
              18%

            	
              40%

            
	
              19%

            	
              45%

            
	
              20%

            	
              50%

            
	
              21%

            	
              55%

            
	
              22%

            	
              60%

            
	
              23%

            	
              65%

            
	
              24%

            	
              70%

            
	
              25%

            	
              75%

            
	
              26%

            	
              80%

            
	
              27%

            	
              85%

            
	
              28%

            	
              90%

            
	
              29%

            	
              95%

            
	
              30%

            	
              100%

            

    

    

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

    

    (c)  Any
      “incentive compensation” for a fiscal year shall be deemed to have been fully
      earned and payable at December 31st of each fiscal year, and shall be paid
      to
      Employee within 30 days of the issuance of Employer’s audited financial
      statements for a specified fiscal year. “Return on Tangible Equity” shall be
      determined on a consolidated basis in accordance with Generally Accepted
      Accounting Principles before extraordinary items. Unless otherwise approved
      in
      the discretion of the Board of Directors or its Compensation Committee, no
      “incentive compensation” shall be payable if Return on Tangible Equity is less
      than 14%. In the event that, during any fiscal year, Employee dies, is deemed
      to
      have voluntarily terminated his employment by reason of Total and Permanent
      Disability, is terminated without Just Cause, or terminates employment for
      Good
      Reason, or if this Agreement terminates because it is not extended under Section
      2 of this Agreement, the “incentive compensation” provided for herein shall be
      prorated based on the number of days worked by Employee pursuant to this
      Agreement in the fiscal year of his termination of employment (including
      vacation and sick days) or in the fiscal year in which the Agreement is not
      extended to the number of business days in such fiscal year.

     

    (d)  Employee
      shall be eligible for a “bonus” in addition to the previously described
“incentive compensation”, such bonus to be awarded by the Employer’s Board of
      Directors following recommendation by the Compensation Committee of such Board.
      Any bonus awarded is at the discretion of the Board and would incorporate and
      recognize accomplishments and achievements attributable to Employee and/or
      his
      leadership which the Compensation Committee and/or the Board determined to
      be in
      the best long-term interests of the Employer and which contributions are not
      deemed to be adequately reflected in “incentive compensation” based on
      Employer’s Return on Tangible Equity provided for in Section 3(b) of this
      Agreement.

     

    (e)  Employee
      shall have the right to participate in the incentive plans of Employer for
      which
      he may become eligible and designated a participant, including but not limited
      to any equity based compensation plans and future incentive plans adopted by
      the
      Employer during the Term.

     

    (f)   Except
      as otherwise specifically provided herein, for so long as Employee is employed
      by Employer, Employee also shall be paid, on the same basis as other officers
      of
      Employer, employee pension and welfare benefits and group employee benefits
      such
      as sick leave, vacation, group disability and health, life, and accident
      insurance and similar indirect compensation which Employer may from time to
      time
      extend to its officers; provided that Employee shall receive term life insurance
      coverage in an amount not less than two (2) times his base salary as then in
      effect. For purposes of clarification, under Employer’s existing policies
      Employee shall be entitled to up to eight weeks of vacation each year. Unused
      vacation pay shall not carry over to succeeding years.

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

    (g)  If
      during
      the Term of the Agreement Employee becomes eligible for retirement under
      Employer's retirement plans and he retires, Employee may elect to continue
      receiving the health insurance coverage provided to Employee prior to retirement
      at a comparable rate and benefit available to other retired employees (or,
      if no
      such benefit is then made available to other retired employees, at the rate
      and
      benefit available to Employee at the time of retirement).

     

    (h)  For
      so
      long as Employee is employed by Employer, Employer shall pay Employee's
      reasonable civic club dues.

     

    (i)  Employer
      shall reimburse Employee for the reasonable fees and charges of Employee's
      legal
      counsel and tax advisor incurred in connection with the negotiation,
      implementation and exercise of his rights under his employment agreements and
      benefits from time to time.

     

    (j)  In
      the
      event that the Company effects a distribution of purchase rights or warrants
      or
      other equity securities to holders of its Common Stock generally, including,
      without limitation, a rights offering for the purpose of raising capital, and
      the terms of any options or other equity compensation arrangements then held
      by
      Employee do not provide for an equitable adjustment for Employee's benefit
      to
      protect Employee from dilution of Employee's equity interest resulting
      therefrom, then the Company shall cause such amount of warrants, rights or
      securities to be issued or made available for purchase or exercise by Employee
      in the same amount and on the same terms and conditions as would be available
      to
      a shareholder holding the number of shares covered by the options or other
      equity compensation benefits then held by Employee. Without limiting the
      foregoing, if the provisions of Employee's Stock Option Agreements relating
      to
      equitable adjustment of stock options are not permitted or are limited by the
      Company’s Stock Incentive Plans, or if there are insufficient shares available
      for issuance under such plan to provide for such adjustment, the Employer shall
      pay to Employee such amount as may be necessary to hold Employee harmless in
      respect of its inability to provide Employee the full benefit of such
      provision.

     

    4.  Covenants
      of Employee.

     

    (a)  Subject
      to the limitations provided in Subsections 4(b), 4(c), 4(d), and 4(e) (whichever
      may be applicable), upon termination of Employee's employment, Employee will
      not, directly or indirectly, either as a principal, executive officer, employer,
      stockholder, co-partner or in any other individual or representative capacity
      whatsoever, engage in the consumer, savings or commercial banking business,
      the
      savings and loan business, or the mortgage banking business in any county of
      any
      state in which the Company or City National Bank maintains offices immediately
      prior to the termination of employment, as well as the counties of Kanawha,
      Putnam, Jackson, Cabell, Wayne, Mason, Lincoln, Doddridge, Marion, Raleigh,
      Summers, Fayette, Greenbrier, Nicholas, Braxton, Lewis, Monroe, Pocahontas,
      Mercer, Wood, Harrison, Jefferson, Berkeley, Morgan, Hampshire in West Virginia
      or the counties of Boyd, Carter, Greenup or Johnson in Kentucky, or the counties
      of Lawrence or Scioto in Ohio, nor will Employee solicit, or assist any other
      person in so soliciting, any depositors or customers of Employer or its
      Affiliates or induce any then or former employee of Employer or its Affiliates
      to terminate his or her employment with Employer or its Affiliates; provided,
      however, that nothing herein contained shall be deemed to prevent or limit
      the
      right of Employee to invest in a business similar to Employer's business if
      such
      investment is limited to less than one percent of the capital stock or other
      securities of any corporation or similar organization whose stock or securities
      are publicly owned or are regularly traded on any public exchange. The term
      “Affiliate” as used in this Agreement means a Person that directly or indirectly
      through one or more intermediaries, controls, or is controlled by, or is under
      common control with, another Person. The term “Person” as used in this Agreement
      means any person, partnership, corporation, group or other entity.

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

    (b)  Except
      as
      provided in Section 4(e) hereof, if Employee voluntarily terminates his
      employment with Employer, Employee will be subject to the provisions of
      Subsection 4(a) for a period of 36 months following the date of termination
      of
      employment of Employee.

     

    (c)  If
      Employee's employment is terminated by Employer for Just Cause (as defined
      in
      Subsection 6(c)), Employee will be subject to the provisions of Subsection
      4(a)
      for a period of 36 months following the date of termination of Employee’s
      employment.

     

    (d)  If
      Employee's employment is terminated by Employer for reasons other than Just
      Cause (as defined In Subsection 6(c)) at any time, Employee will not be subject
      to the provisions of Subsection 4(a), provided, however, that for 36 months
      after termination, Employee shall not solicit or assist another person in
      soliciting, any depositor or customer of Employer or its Affiliates or induce
      any then or former employee to terminate his or her employment with Employer
      or
      its Affiliates.

     

    (e)  Notwithstanding
      any other provision of this Agreement to the contrary, if Employee voluntarily
      terminates his employment with Employer in accordance with Subsection 6(f),
      Employee will not be subject to Subsection 4(a), provided, however, that for
      36
      months after termination, Employee shall not solicit or assist another person
      in
      soliciting, any depositor or customer of Employer or its Affiliates or induce
      any then or former employee to terminate his or her employment with Employer
      or
      its Affiliates.

     

    (f)  During
      the Term of Employee's employment hereunder and thereafterfor a period of 36
      months, and except as required by any court, supervisory authority or
      administrative agency or as may be otherwise required by applicable law,
      Employee shall not, without the written consent of the Board of Directors of
      Employer or a person authorized thereby, disclose to any person, other than
      an
      employee of Employer or an Affiliate thereof or a person to whom disclosure
      is
      reasonably necessary or appropriate in connection with the performance by
      Employee of his duties as an employee of Employer or an Affiliate, any
      confidential information obtained by him while in the employ of Employer, unless
      such information has become a matter of public knowledge at the time of such
      disclosure.

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

    (g)  The
      covenants contained in this Section 4 shall be construed and interpreted in
      any
      judicial proceeding to permit their enforcement to the maximum extent permitted
      by law. Employee agrees that the restraints imposed herein are necessary for
      the
      reasonable and proper protection of Employer and its Affiliates and that each
      and every one of the restraints is reasonable in respect to such matter, length
      of time and the area proscribed. Employee further acknowledges that damages
      at
      law would not be a measurable or adequate remedy for breach of the covenants
      contained in this Section 4 and, accordingly, Employee agrees to submit to
      the
      equitable jurisdiction of any court of competent jurisdiction in Charleston,
      West Virginia in connection with any action to enjoin Employee from violating
      any such covenants.

     

    5.  Disability.

     

    If,
      by
      reason of Total and Permanent Disability (as defined below) during the Term,
      Employee is unable to carry out the essential functions of his employment for
      12
      consecutive months, his services may be terminated by the Board of Directors
      determining so to do upon one month's notice to be given to Employee at any
      time
      after the period of 12 continuous months of Total and Permanent Disability
      and
      while such Total and Permanent Disability continues. If, prior to the expiration
      of the one month period after the giving of such notice, Employee shall recover
      from such Total and Permanent Disability and return to the full-time active
      discharge of his duties, then such notice shall be of no further force and
      effect and Employee's employment shall continue as if the same had been
      uninterrupted. If Employee shall not so recover from his Total and Permanent
      Disability and return to his duties, then his services shall terminate at the
      expiration date of such one month's notice with the same force and effect as
      if
      that date had been the date of termination originally provided for hereunder.
      During the first 12 months of the period of Employee's Total and Permanent
      Disability, Employee shall continue to earn all compensation (including bonuses
      and incentive compensation) to which Employee would have been entitled as if
      he
      had not been Totally and Permanently Disabled, such compensation to be paid
      at
      the time, in the amounts, and in the manner provided in Subsection 3(a), and
      to
      be reduced by the amount of any compensation received pursuant to any applicable
      disability insurance plan of Employer. Thereafter, Employee shall receive
      compensation to which he is entitled under any applicable disability insurance
      plan. At the time of Employee’s termination of employment under this Section 5
      as a result of his Total and Permanent Disability, Employee shall be entitled
      to
      receive “Termination Compensation” as defined in Subsection 6(b) multiplied by
      three (3) paid over 60 equal monthly installments beginning with the first
      day
      of the month following Employee’s termination of employment as a result of Total
      and Permanent Disability under this Section 5. Such payments shall be reduced
      by
      the amount of any compensation received pursuant to any applicable disability
      insurance plan of Employer. Employee shall continue to receive health insurance
      coverage from Employer on the same terms as were in effect prior to Employee’s
      termination, either under the Employer’s plans or comparable coverage, for all
      periods Employee receives Termination Compensation so long as Employee complies
      with Subsection 4(a). If a dispute arises between Employee and Employer
      concerning Employee's physical or mental ability to continue or return to the
      performance of his duties as aforesaid, Employee shall submit to examination
      by
      a competent physician mutually agreeable to the parties, and his opinion as
      to
      Employee's capability to so perform will be final and binding. Upon termination
      of Employee's services by reason of Total and Permanent Disability, the Term
      shall end. For purposes of this Agreement, “Total and Permanent Disability”
means the Employee: (i) is unable to engage in any substantial gainful
      activity by reason of any medically determinable physical or mental impairment
      which can be expected to result in death or can be expected to last for a
      continuous period of not less than twelve (12) months; or (ii) is, by reason
      of
      any medically determinable physical or mental impairment which can be expected
      to result in death or can be expected to last for a continuous period of not
      less than twelve (12) months, receiving income replacement benefits for a period
      of not less than three (3) months under an accident and health plan covering
      employees of the Company.

     

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

    6.  Termination.

     

    (a)  Notwithstanding
      any other provision of this Agreement to the contrary, in the event that
      Employee voluntarily terminates employment with Employer (other than as a result
      of the application of Section 5 or 6(f) hereof) or in the event this Agreement
      terminates after Employer elects not to extend it and to convert it to a fixed
      two-year period, Employee will be entitled to receive $693,082, plus interest
      accruing from and after December 31, 2006, on all unpaid amounts until paid,
      at
      the Treasury One-Year Constant Maturity rate which shall be determined as of
      December 31st
      of the prior year for the succeeding calendar year and shall adjust each
      December 31st
      for the succeeding year until the amount is fully paid. This amount shall be
      paid to Employee over 36 equal monthly payments, beginning with the first day
      of
      the month following Employee’s voluntary termination of employment. In addition,
      Employee shall continue to receive health insurance coverage from Employer
      on
      the same terms as were in effect prior to Employee's termination, either under
      the Employer's plans or comparable coverage for 60 months or until Employee
      becomes eligible for health benefits provided by another employer, which
      benefits are substantially equivalent to those offered by Employer to Employee
      immediately prior to termination, whichever is shorter, so long as Employee
      complies with Subsection 4(a). The benefits provided for under this Section
      6(a)
      reflect benefits originally provided under the Employment Agreement signed
      between the Employer and the Employee on May 15, 2001 as amended on November
      18,
      2003 which benefits became fully vested on May 15, 2005. The benefits
      provided under this Section 6(a) shall not be subject to risk of forfeiture
      under any circumstances, including any of the reasons that qualify for “Just
      Cause” as provided under Section 6(c) except where Employee personally profits
      from his willful fraudulent activity and that activity materially and adversely
      affects Employer. If, at the time of such termination, circumstances exist
      which
      would permit Employee to terminate his employment and be entitled to the
      benefits provided for under paragraph 6(f), Employee may elect to terminate
      employment either pursuant to paragraph 6(f) or this paragraph 6(a); provided,
      however, that such election shall be permitted only if the timing and form
      of
      payment under paragraph 6(f) and this paragraph 6(a) are the same. No voluntary
      termination of employment by Employee under this paragraph 6(a) shall be deemed
      to be made in connection with a Change of Control for any reason.

     

    By
      way of
      example, to illustrate the foregoing, Employee may voluntarily resign at any
      time during the term of this Agreement and receive $693,082 plus interest on
      any
      unpaid amounts during 2007 at the Treasury One-Year Constant Maturity Rate
      on
      December 31, 2006, (which was 4.94%), plus interest on unpaid amounts during
      subsequent years at the Treasury One-Year Constant Maturity Rate as of December
      31 of each prior year.  Interest would continue to adjust on this same
      basis until the amount is paid in full, etc. For example, the Employee may
      resign effective December 31, 2007 and receive $727,320.25.

     

    
      
        
        

      

      
        -31-

        
          

        

      

      
        
        

      

    

    (b)   “Termination
      Compensation” means the highest amount of cash compensation paid (or earned and
      payable whether or not deferred) to or for the benefit of Employee in respect
      of
      any of the three most recent calendar years ending prior to the date of
      termination, determined by reference to the annual cash compensation (salary,
      incentive compensation, and  bonus) reflected in the summary
      compensation table set forth in the Company’s proxy statement for such year, or,
      in the absence of such previously reported table, by reference to the amount
      of
      such compensation as would be reflected for such year in such a summary
      compensation table prepared in accordance with Item 402(b) of Regulation S-K
      of
      the Securities and Exchange Commission.

     

    By
      way of
      example, to illustrate the foregoing:  Cash compensation for 2004 was
      $328,000. Cash compensation for 2005 was $328,440, and cash compensation for
      2006 was $346,541. As a result, Termination Compensation would be at least
      $346,541 if termination occurs during 2007, 2008, or 2009. As a result, if
      Employee’s employment was terminated 1) by Employer for reasons other than “Just
      Cause” as provided for in Subsection 6(c), 2) by death as provided for in
      Subsection 6(d), 3) by disability as provided for in Section 5, or 4) as
      provided for in Subsection 6(f) at any time through December 31, 2009, Employee
      would receive at least $1,039,623 paid over 36 months (three times “Termination
      Compensation” of $346,541). The amount that would be paid could increase above
      this amount if total cash compensation of Employee in 2007 or any subsequent
      year preceding termination, is higher than $346,541. For instance, if the
      Employee’s employment was terminated for reasons other than “Just Cause” in
      2008, and cash compensation for 2007 was $360,000, then the employee would
      receive $1,080,000 paid over 36 months.

     

    (c)  Employer
      shall have the right to terminate Employee's employment under this Agreement
      at
      any time for Just Cause, which termination shall be Effective immediately.
      Termination for “Just Cause” shall include termination for (a) Employee's
      commission of an act materially and demonstrably detrimental to the Employer,
      which act constitutes willful misconduct by the Employee in the performance
      of
      his material duties to the Employer not authorized, directed or ratified by
      City
      National’s or the Company’s Board of Directors; (b) Employee's conviction of a
      felony involving moral turpitude; or (c) Employee’s material breach of any other
      provision of this Agreement, provided that Employee has received written notice
      from Employer of such material breach and such breach remains uncured 30 days
      after the delivery of such notice. No act or failure to act will be considered
      “willful” under this Agreement unless it is done, or omitted to be done, by the
      Employee in bad faith or without reasonable belief that his action or omission
      was in the best interests of the Employer. In the event Employee's employment
      under this Agreement is terminated for Just Cause, Employee’s right to receive
      compensation or other benefits under this Agreement for any period after such
      termination shall be limited to those provided for under Subsection
      6(a).

     

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

    (d)  If
      Employee shall die during the Term, this Agreement and the employment
      relationship hereunder will automatically terminate on the date of death, which
      date shall be the last date of the Term. Notwithstanding this Subsection 6(d),
      if Employee dies while employed by Employer, Employee's estate shall receive
      an
      amount equal to the Employee's Termination Compensation (as defined above)
      multiplied by (3) three, paid over 36 equal monthly payments commencing with
      the
      first day of the month following the date of death, in addition to any life
      insurance benefits available to all employees of City National.

     

    (e)  Employer
      may terminate Employee’s employment other than for “Just Cause,” as described in
      Subsection 6(c), at any time upon written notice to Employee, which termination
      shall be effective immediately. In the event Employer terminates Employee
      pursuant to this Subsection 6(e), Employee will nevertheless receive his
      Termination Compensation times (3) three to be paid in 36 monthly installments
      commencing with the first day of the month following Employee’s termination of
      employment under this Section 6(e). In addition, Employee shall continue to
      receive health insurance coverage from Employer on the same terms as were in
      effect prior to Employee’s termination, either under Employer’s plans or
      comparable coverage, for 60 months, or until Employee becomes eligible for
      health benefits offered by another employer, which benefits are substantially
      equivalent to those provided by Employer to Employee immediately prior to
      termination, whichever is shorter. Notwithstanding anything in this Agreement
      to
      the contrary, if Employee breaches Subsection 4(d), Employee will not be
      entitled to receive any further compensation or benefits pursuant to this
      Subsection 6(e).

     

    (f)  Employee
      may voluntarily terminate employment with Employer (i) pursuant to
      paragraph 8(g) hereof, or (ii) for “Good Reason.”  In either such
      event, Employee shall be entitled to receive (i) any compensation due but not
      yet paid through the date of termination, and (ii) in lieu of any further salary
      payments from the date of termination to the end of the Term, an amount equal
      to
      the Termination Compensation multiplied by 3.00 paid in 36 monthly installments
      commencing with the first day of the month following the date of such
      termination of employment. In addition, Employee shall continue to receive
      health insurance coverage from Employer on the same terms as were in effect
      prior to Employee’s termination, either under Employer’s plans or comparable
      coverage for either 60 months or until Employee becomes eligible for health
      benefits provided by another employer, which benefits are substantially
      equivalent to those offered by Employer to Employee immediately prior to
      termination, whichever is shorter. Under these circumstances, Employee shall
      not
      be subject to the restrictions in Section 4(a), as set forth in Section
      4(e).

     

    “Good
      Reason” shall mean the occurrence of any of the following events without
      Employee's express written consent:

     

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

    (i)  the
      assignment to Employee of duties inconsistent with the position of Executive
      Vice-President of companies similar to the Employer;

     

    (ii)   a
      reduction by Employer in Employee's pay grade or base salary as then in effect
      or the exclusion of Employee from participation in Employer's benefit plans
      in
      which he previously participated as in effect at the date hereof or as the
      same
      may be increased from time to time during the term of this
      Agreement.

     

    (iii)   an
      involuntary relocation of Employee more than 50 miles from the location where
      Employee worked immediately following his most recent voluntary relocation
      or
      the breach by Employer of any other material provision of this
      Agreement;

     

    (iv)  any
      purported termination of the employment of Employee by Employer which is not
      effected in accordance with this Agreement; or

     

    (v)  the
      occurrence of a Change of Control within the period of 24 months preceding
      such
      termination.

     

    A
“Change
      of Control” shall be deemed to have occurred if (i) any person or group of
      persons (as defined in Section 13(d) and 14(d) of the Securities Exchange Act
      of
      1934) together with its affiliates, excluding employee benefit plans of
      Employer, is or becomes, directly or indirectly, the “beneficial owner” (as
      defined in Rule 13d-3 promulgated under the Securities Exchange Act of 1934)
      of
      securities of the Company or of City National representing 20% or more of the
      combined voting power of its then outstanding securities; or (ii) during the
      term of this Agreement as a result of a tender offer or exchange offer for
      the
      purchase of securities of the Company or of City National (other than such
      an
      offer by the Company or City National for its own securities), or as a result
      of
      a proxy contest, merger, consolidation or sale of assets, or as a result of
      any
      combination of the foregoing, individuals who at the beginning of any two-year
      period during the Term of this Agreement constitute the Company’s or City
      National’s Board of Directors, plus new directors whose election or nomination
      for election by the Company’s or City National’s shareholders, as applicable, is
      approved by a vote of at least two-thirds of the directors still in office
      who
      were directors at the beginning of such two-year period, cease for any reason
      during such two-year period to constitute at least two-thirds of the members
      of
      such Board of Directors; or (iii) the shareholders of the Company or of City
      National approve a merger or consolidation of the Company and/or City National
      with any other corporation or entity regardless of which entity is the survivor,
      other than a merger or consolidation which would result in the voting securities
      of the Company or City National outstanding immediately prior thereto continuing
      to represent (either by remaining outstanding or being converted into voting
      securities of the surviving entity) at least 80% of the combined voting power
      of
      the voting securities of the Company or City National or such surviving entity
      outstanding immediately after such merger or consolidation; or (iv) the
      shareholders of the Company or City National, as applicable, approve a plan
      of
      complete liquidation or winding-up of the Company or City National or an
      agreement for the sale or disposition by the Company or City National of all
      or
      substantially all of the Company’s or City National’s assets; or (v) any event
      which Employer's Board of Directors determines should constitute a Change of
      Control.

     

    (g)  In
      receiving any payments pursuant to this Section 6, Employee shall not be
      obligated to seek other employment or take any other action by way of mitigation
      of the amounts payable to Employee hereunder, and such amounts shall not be
      reduced or terminated whether or not Employee obtains other
      employment.

     

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

    (h)  In
      the
      event that Employer's independent public accountants or the Internal Revenue
      Service determine, at any time during or after expiration of this Agreement,
      that Employee has collected an amount arising from any and all sources of
      compensation from Employer (including, without limitation, by virtue of the
      immediately following sentence) exceeding the product of 2.99 and Employee's
      “base amount” as defined in Section 280G(b)(3) of the Internal Revenue Code (the
“Code § 280G Maximum”), notwithstanding any provision of this agreement or any
      plan or arrangement of Employer to the contrary, Employer shall pay Employee
      147.5% of the federal excise taxes payable by Employee under Code § 4999. Such
      tax gross up payment shall be made to Employee no later than the due date of
      the
      Employee’s tax return reporting the amount of such tax. If, by virtue of any
      plan or arrangement of Employer, benefits to which Employee would otherwise
      be
      entitled would be curtailed or reduced because Employee may collect an amount
      exceeding the Code § 280G Maximum, Employer shall nevertheless pay to Employee
      an amount equal to 100% of the value by which such benefits are curtailed or
      reduced, and any such payments shall be subject to the excise tax reimbursement
      prescribed by the preceding section.

     

    (i)  To
      the
      extent that Employee is a "key employee" (as defined under Section 416(i) of
      the
      Internal Revenue Code, disregarding Section 416(i)(5) of the Internal Revenue
      Code) of the Company, no payment of Termination Compensation may be made under
      this Section 6 prior to the earlier of (i) the expiration of the six (6)-month
      period measured from the date of Employee's separation from service, or (ii)
      the
      date of Employee's death; provided, however, that the six (6) month delay
      required under this Section 6(i) shall not apply to the portion of any payment
      resulting from the Employee’s “involuntary separation from service” (as defined
      in Treas. Reg. § 1.409A 1(n) and including a “separation from service for good
      reason,” as defined in Treas. Reg. § 1.409A 1(n)(2)) that (a) is payable no
      later than the last day of the second year following the year in which the
      separation from service occurs, and (b) does not exceed two times the lesser
      of
      (i) the Employee’s annualized compensation for the year prior to the year in
      which the separation from services occurs, or (ii) the dollar limit described
      in
      Section 401(a)(17) of the Code. To the extent Termination Compensation payable
      in monthly installments under this Section 6 is required to be deferred under
      the preceding sentence, the first six months of monthly installments shall
      be
      payable in month seven following Employee's separation from service and the
      remaining monthly payments shall be made when otherwise scheduled.

     

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

    (j)  Any
      reference in this Agreement to a termination of employment, severance from
      employment or separation from employment shall be deemed to mean a “Termination
      of Employment.”  A “Termination of Employment” means the termination
      of the Employee’s employment with the Company and its Affiliates for reasons
      other than death or Total and Permanent Disability.  Whether a
      Termination of Employment takes place is determined based on the facts and
      circumstances surrounding the termination of the Employee’s
      employment.  A Termination of Employment will be considered to have
      occurred if it is reasonably anticipated that:

     

    (i)  the
      Employee will not perform any services for the Company or its Affiliates after
      Termination of Employment, or

     

    (ii)  the
      Employee will continue to provide services as the Company or its Affiliates
      at
      an annual rate that is less than fifty percent (50%) of the bona fide services
      rendered during the immediately preceding twelve (12) months of
      employment.

     

    7.  Other
      Employment.

     

    Employee
      shall devote all of his business time, attention, knowledge and skills solely
      to
      the business and interest of Employer and its Affiliates, and Employer and
      its
      Affiliates shall be entitled to all of the benefits, profits and other
      emoluments arising from or incident to all work, services and advice of
      Employee, and Employee shall not, during the Term hereof, become interested
      directly or indirectly, in any manner, as partner, officer, director,
      stockholder, advisor, employee or in any other capacity in any other business
      similar to Employer's business; provided, however, that nothing herein contained
      shall be deemed to prevent or limit the right of Employee to invest in a
      business similar to Employer's business if such investment is limited to less
      than one percent of the capital stock or other securities of any corporation
      or
      similar organization whose stock or securities are publicly owned or are
      regularly traded on any public exchange.

     

    8.  Miscellaneous.

     

    (a)   This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of West Virginia without regard to conflicts of law principles
      thereof.

     

    (b)  This
      Agreement constitutes the entire Agreement between Employee and Employer, with
      respect to the subject matter hereof, and supersedes the Amended and Restated
      Employment Agreement entered into between the Employer and Employee on May
      15,
      2001, as amended on November 18, 2003, as well as the Amendment to the
      Employment Agreement signed on February 25, 2005, pursuant to which the Employee
      became the Executive Vice President of the Company and City
      National.  Without limiting the foregoing, Employee agrees that this
      Agreement satisfies any rights he may have had under the prior employment
      agreements.

     

    
      
        
        

      

      
        -36-

        
          

        

      

      
        
        

      

    

    (c)  This
      Agreement may be executed in one or more counterparts, all of which, taken
      together, shall constitute one and the same instrument.

     

    (d)  Any
      notice or other communication required or permitted under this Agreement shall
      be effective only if it is in writing and delivered in person or by reliable
      overnight courier service or deposited in the mails, postage prepaid, return
      receipt requested, addressed as follows:

     

    To
      Employer:

     

    City
      Holding Company

     

    25
      Gatewater Road

     

    Charleston,
      West Virginia 25313

     

    (304)
      769-1100

     

    Attention:        Corporate
      Secretary

     

    To
      Employee:

     

    Craig
      G.
      Stilwell

     

    [Address
      and Telephone Number]

     

    

     

    Notices
      given in person or by overnight courier service shall be deemed given when
      delivered to the address required by this Subsection 8(d), and notices given
      by
      mail shall be deemed given three days after deposit in the mails. Any party
      hereto may designate by written notice to the other party in accordance herewith
      any other address to which notices addressed to him shall be sent.

     

    (e)  The
      provisions of this Agreement shall be deemed severable and the invalidity or
      unenforceability of any provision shall not affect the validity or
      enforceability of the other provisions hereof. It is understood and agreed
      that
      no failure or delay by Employer or Employee in exercising any right, power
      or
      privilege under this Agreement shall operate as a waiver thereof, nor shall
      any
      single or partial exercise thereof preclude any other or further exercise
      thereof or the exercise of any other right, power or privilege
      hereunder.

     

    (f)  In
      the
      event any dispute shall arise between Employee and Employer as to the terms
      or
      interpretations of this Agreement, whether instituted by formal legal
      proceedings or otherwise, including any action taken by Employee to enforce
      the
      terms of this Agreement or in defending against any action taken by Employer,
      Employer shall reimburse Employee for all reasonable costs and expenses,
      including reasonable attorneys' fees, arising from such dispute, proceeding
      or
      action, if Employee shall prevail in any action initiated by Employee or shall
      have acted reasonably and in good faith in defending against any action
      initiated by Employer. Such reimbursement shall be paid within 10 days of
      Employee furnishing to Employer written evidence, which may be in the form,
      among other things, of a canceled check or receipt, of any costs or expenses
      incurred by Employee. Any such request for reimbursement by Employee shall
      be
      made no more frequently than at 60 day intervals.

     

    
      
        
        

      

      
        -37-

        
          

        

      

      
        
        

      

    

    (g)  Should
      Employee die after termination of his employment with Employer while any amounts
      are payable to him hereunder, this Agreement shall inure to the benefit of
      and
      be enforceable by Employee's executors, administrators, heirs, distributees,
      devisees and legatees and all amounts payable hereunder shall be paid in
      accordance with the terms of this Agreement to Employee's devisee, legatee
      or
      other designee or, if there is no such designee, to his estate. Employer shall
      require any successor (whether direct or indirect, by purchase, merger,
      consolidation or other-wise) to all or substantially all of the business or
      assets of Employer, by agreement in form and substance reasonably satisfactory
      to Employee to expressly assume and agree to perform this Agreement in the
      same
      manner and same extent that Employer would be required to perform it if no
      such
      succession had taken place. Failure of Employer to obtain such agreement prior
      to the effectiveness of any such succession shall be deemed “Good Reason”,
      permitting termination by Employee pursuant to Section 6(f). As used in this
      Agreement, “Employer” shall mean Employer as hereinbefore defined and any
      successor to its business or assets as aforesaid.

     

    (h)  To
      the
      extent necessary to effectuate the terms of this Agreement, the terms of this
      Agreement, and the respective rights and obligations of the parties, which
      must
      survive the termination of Employee's employment or the termination or
      expiration of this Agreement shall so survive. Without limiting the foregoing,
      Sections 4, 5, 6, and 8(g) shall expressly survive the termination of this
      Agreement.

     

    
      
        
        

      

      
        -38-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      date
      and year first above written.

    

     

    
      	
              CITY
                HOLDING COMPANY

            
	 
	 
	
              By:           /s/
                Charles R. Hageboeck

            
	
              Charles
                R. Hageboeck, President
                &

            
	
              CEO

            

    

    

    

    
      	
              CITY
                NATIONAL BANK OF

            
	
              WEST
                VIRGINIA

            
	 
	 
	
              By:           /s/
                Charles R. Hageboeck

            
	
              Charles
                R. Hageboeck, President
                &

            
	
              CEO

            

    

    

    

    
      	
              EMPLOYEE

            
	 
	 
	
              /s/
                Craig G. Stilwell

            
	
              Craig
                G.
                Stilwell

            

    

    

     

    -39-exh10-9.htm

    Exhibit
      10.9

    

    

    

    

    

    

    

    

    

    

    SIERRA
      HEALTH SERVICES, INC.

    

    

    DEFERRED
      COMPENSATION PLAN

    

    

    Effective
      May 1, 1996, as Amended

    and
      Restated January 1, 2006

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

     

    
       

      
        
        

        
          

        

      

       

    

    TABLE
      OF
      CONTENTS

    

    Page

    

    
      	
              Purpose

            	 	
              1

            
	 	 	 	 	 
	
              ARTICLE
                1

            	
              Definitions                                                                                                           

            	
              1

            
	 	 	 	 	 
	
              ARTICLE
                2

            	
              Selection,
                Enrollment,
                Eligibility                                                                                                           

            	
              7

            
	 	 	 	 	 
	
              2.1

            	 	
              Selection
                by
                Committee                                                                                                           

            	
              7

            
	
              2.2

            	 	
              Enrollment
                Requirements                                                                                                           

            	
              7

            
	
              2.3

            	 	
              Eligibility;
                Commencement of
                Participation                                                                                                           

            	
              7

            
	
              2.4

            	 	
              Termination
                of Participation and/or
                Deferrals                                                                                                           

            	
                 7

            
	 	 	 	 	 
	
              ARTICLE
                3

            	
              Deferral
                Commitments/Company Matching/Crediting/Taxes

            	
                 8

            
	 	 	 	 	 
	
              3.1

            	 	
              Minimum
                Deferral                                                                                                           

            	
                 8

            
	
              3.2

            	 	
              Maximum
                Deferral                                                                                                           

            	
                 8

            
	
              3.3

            	 	
              Election
                to Defer; Effect of Election
                Form                                                                                                           

            	
                 9

            
	
              3.4

            	 	
              Withholding
                of Annual Deferral
                Amounts                                                                                                           

            	
                 9

            
	
              3.5

            	 	
              Annual
                Company Matching
                Amount                                                                                                           

            	
                 9

            
	
              3.6

            	 	
              Annual
                Company Restoration
                Amount                                                                                                           

            	
               10

            
	
              3.7

            	 	
              Vested
                Company Matching Account, Vested Company

            	 
	 	 	
              Restoration
                Account, and Deferral Account

              Restoration
                Account, and Deferral Account

            	
                11

            
	
              3.8

            	 	
              Crediting/Debiting
                of Account
                Balances                                                                                                           

            	
               11

            
	
              3.9

            	 	
              FICA,
                Withholding and Other
                Taxes                                                                                                           

            	
               13

            
	
              3.10

            	 	
              Rollovers
                From Prior Deferred Compensation
                Plan                                                                                                           

            	
              14

            
	 	 	 	 	 
	
              ARTICLE
                4

            	
              Short-Term
                Payout; Unforeseeable Financial Emergencies;

            	 
	 	 	
              Withdrawal
                Election

            	
               14

            
	 	 	 	 	 
	
              4.1

            	 	
              Short-Term
                Payout                                                                                                           

            	
              14

            
	
              4.2

            	 	
              Other
                Benefits Take Precedence Over Short-Term Payout

            	
              14

            
	
              4.3

            	 	
              Withdrawal
                Payout/Suspensions for Unforeseeable Financial
                Emergencies .

            	
              15

            
	
              4.4

            	 	
              Withdrawal
                Election                                                                                                           

            	
              15

            
	 	 	 
	
              ARTICLE
                5

            	
              Retirement
                Benefit                                                                                                           

            	
              15

            
	 	 	 	 	 
	
              5.1

            	 	
              Retirement
                Benefit                                                                                                           

            	
              15

            
	
              5.2

            	 	
              Payment
                of Retirement
                Benefit                                                                                                           

            	
              15

            
	
              5.3

            	 	
              Death
                Prior to Completion of Retirement
                Benefit                                                                                                           

            	
              16

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              ARTICLE
                6

            	
              Pre-Retirement
                Survivor
                Benefit                                                                                                           

            	
              16

            
	 	 	 	 	 	 
	
              6.1

            	 	
              Pre-Retirement
                Survivor
                Benefit                                                                                                           

            	
              16

            
	
              6.2

            	 	
              Payment
                of Pre-Retirement Survivor
                Benefit                                                                                                           

            	
              16

            
	 	 	 	 	 	 
	
              ARTICLE
                7

            	
              Termination
                Benefit                                                                                                           

            	
              16

            
	 	 	 	 	 	 
	
              7.1

            	 	
              Termination
                Benefit                                                                                                           

            	
              16

            
	
              7.2

            	 	
              Payment
                of Termination
                Benefit                                                                                                           

            	
              17

            
	 	 	 	 	 	 
	
              ARTICLE
                8

            	
              Disability
                Waiver and
                Benefit                                                                                                           

            	
              17

            
	 	 	 	 	 	 
	
              8.1

            	 	
              Disability
                Waiver                                                                                                           

            	
              17

            
	
              8.2

            	 	
              Continued
                Eligibility; Disability
                Benefit                                                                                                           

            	
              17

            
	 	 	 	 	 	 
	
              ARTICLE
                9

            	
              Beneficiary
                Designation                                                                                                           

            	
              18

            
	 	 	 	 	 	 
	
              9.1

            	 	
              Beneficiary                                                                                                           

            	
              18

            
	
              9.2

            	 	
              Beneficiary
                Designation; Change; Spousal
                Consent                                                                                                           

            	
              18

            
	
              9.3

            	 	
              Acknowledgment                                                                                                           

            	
              19

            
	
              9.4

            	 	
              No
                Beneficiary
                Designation                                                                                                           

            	
              19

            
	
              9.5

            	 	
              Doubt
                as to
                Beneficiary                                                                                                           

            	
              19

            
	
              9.6

            	 	
              Discharge
                of
                Obligations                                                                                                           

            	
              19

            
	 	 	 	 	 	 
	
              ARTICLE
                10

            	
              Leave
                of Absence; Consulting

            	
              19

            
	 	 	 
	
              10.1

            	 	
              Paid
                Leave of
                Absence                                                                                                           

            	
              19

            
	
              10.2

            	 	
              Unpaid
                Leave of
                Absence                                                                                                           

            	
              19

            
	
              10.3

            	 	
              Consulting
                Arrangements                                                                                                           

            	
              20

            
	 	 	 
	
              ARTICLE
                11

            	
              Termination,
                Amendment or
                Modification                                                                                                           

            	
              20

            
	 	 	 
	
              11.1

            	 	
              Termination                                                                                                           

            	
              21

            
	
              11.2

            	 	
              Amendment                                                                                                           

            	
              21

            
	
              11.3

            	 	
              Plan
                Agreement                                                                                                           

            	
              21

            
	
              11.4

            	 	
              Effect
                of
                Payment                                                                                                           

            	
              21

            
	 	 	 
	
              ARTICLE
                12

            	
              Administration                                                                                                           

            	
              21

            
	 	 	 
	
              12.1

            	 	
              Committee
                Duties                                                                                                           

            	
              21

            
	
              12.2

            	 	
              Agents                                                                                                           

            	
              22

            
	
              12.3

            	 	
              Binding
                Effect of
                Decisions                                                                                                           

            	
              22

            
	
              12.4

            	 	
              Indemnity
                of
                Committee                                                                                                           

            	
              22

            
	
              12.5

            	 	
              Employer
                Information                                                                                                           

            	
              22

            

    

    
       

      
        
        

        
          

        

      

       

    

    

    
      	
              ARTICLE
                13

            	
              Other
                Benefits and
                Agreements                                                                                                           

            	
              22

            
	 	 	 	 	 	 
	
              13.1

            	 	
              Coordination
                with Other
                Benefits                                                                                                           

            	
              22

            
	 	 	 	 	 	 
	
              ARTICLE
                14

            	
              Claims
                Procedures                                                                                                           

            	
              22

            
	 	 	 	 	 	 
	
              14.1

            	 	
              Presentation
                of
                Claim                                                                                                           

            	
              22

            
	
              14.2

            	 	
              Notification
                of
                Decision                                                                                                           

            	
              23

            
	
              14.3

            	 	
              Review
                of a Denied
                Claim                                                                                                           

            	
              23

            
	
              14.4

            	 	
              Decision
                on
                Review                                                                                                           

            	
              23

            
	
              14.5

            	 	
              Legal
                Action                                                                                                           

            	
              24

            
	 	 	 	 	 	 
	
              ARTICLE
                15

            	
              Trust                                                                                                           

            	
              24

            
	 	 	 	 	 	 
	
              15.1

            	 	
              Establishment
                of the
                Trust                                                                                                           

            	
              24

            
	
              15.2

            	 	
              Interrelationship
                of the Plan and the
                Trust                                                                                                           

            	
              24

            
	
              15.3

            	 	
              Distributions
                From the
                Trust                                                                                                           

            	
              24

            
	 	 	 
	
              ARTICLE
                16

            	
              Miscellaneous                                                                                                           

            	
              24

            
	 	 	 
	
              16.1

            	 	
              Unsecured
                General
                Creditor                                                                                                           

            	
              24

            
	
              16.2

            	 	
              Employer's
                Liability                                                                                                           

            	
              25

            
	
              16.3

            	 	
              Nonassignability                                                                                                           

            	
              25

            
	
              16.4

            	 	
              Not
                a Contract of
                Employment                                                                                                           

            	
              25

            
	
              16.5

            	 	
              Furnishing
                Information                                                                                                           

            	
              25

            
	
              16.6

            	 	
              Terms                                                                                                           

            	
              26

            
	
              16.7

            	 	
              Captions                                                                                                           

            	
              26

            
	
              16.8

            	 	
              Governing
                Law                                                                                                           

            	
              26

            
	
              16.9

            	 	
              Notice                                                                                                           

            	
              26

            
	
              16.10

            	 	
              Successors                                                                                                           

            	
              26

            
	
              16.11

            	 	
              Spouse's
                Interest                                                                                                           

            	
              26

            
	
              16.12

            	 	
              Validity                                                                                                           

            	
              26

            
	
              16.13

            	 	
              Incompetent                                                                                                           

            	
              27

            
	
              16.14

            	 	
              Court
                Order                                                                                                           

            	
              27

            
	
              16.15

            	 	
              Distribution
                in the Event of
                Taxation                                                                                                           

            	
              28

            
	
              16.16

            	 	
              Legal
                Fees To Enforce Rights After Change in Control

            	
              28

            

    

    

    
       

      
        
        

        
          

        

      

       

    

    

    SIERRA
      HEALTH SERVICES, INC.

    DEFERRED
      COMPENSATION PLAN

    

    Effective
      May 1, 1996, as Amended

    and
      Restated January 1, 2006

    

    

    Purpose

    

    The
      purpose of this Plan is to provide specified benefits to a select group of
      management or highly compensated Employees who contribute materially to the
      continued growth, development and future business success of the Sierra Health
      Services, Inc., a Nevada corporation, and its subsidiaries (including lower-tier
      subsidiaries), if any, that sponsor this Plan.  This Plan shall be
      unfunded for tax purposes and for purposes of Title I of ERISA.

    

    ARTICLE
      1

    Definitions

    

    For
      purposes hereof, unless otherwise clearly apparent from the context, the
      following phrases or terms shall have the following indicated
      meanings:

    

    
      	
              1.1

            	
              "Account
                Balance" shall mean, with respect to a Participant, the sum of (i)
                the
                Deferral Account plus (ii) the Vested Company Matching Account plus
                (iii)
                the Vested Company Restoration Account.  This account shall be a
                bookkeeping entry only and shall be utilized solely as a device for
                the
                measurement and determination of the amounts to be paid to a Participant
                pursuant to this Plan.

            

    

    

    
      	
              1.2

            	
              "Annual
                Bonus" shall mean any annual cash compensation in addition to Base
                Annual
                Salary relating to services performed during any calendar year, whether
                or
                not paid in such calendar year or included on the Federal Income
                Tax Form
                W-2 for such calendar year, payable to a Participant as an Employee
                under
                any Employer's annual bonus and incentive plans, including any such
                bonuses payable to physician
                employees.

            

    

    

    
      	
              1.3

            	
              "Annual
                Company Matching Amount" for any one Plan Year shall be the amount
                determined in accordance with Section
                3.5.

            

    

    

    
      	
              1.4

            	
              "Annual
                Company Restoration Amount" for any one Plan Year shall be the amount
                determined in accordance with Section
                3.6.

            

    

    
      	
              1.5

            	
              "Annual
                Deferral Amount" shall mean that portion of a Participant's Base
                Annual
                Salary and/or Annual Bonus that a Participant elects to have, and
                is,
                deferred in accordance with Article 3, for any one Plan Year. In
                the event
                of a Participant's Retirement, Disability (if deferrals cease in
                accordance with Section 8.1), death or a Termination of Employment
                prior
                to the end of a Plan Year, such year's Annual Deferral Amount shall
                be the
                actual amount withheld prior to such
                event.

            

    

    

    
      	
              1.6

            	
              "Base
                Annual Salary" shall mean the annual cash compensation relating to
                services performed during any calendar year, whether or not paid
                in such
                calendar year or included on the Federal Income Tax Form W-2 for
                such
                calendar year including bonuses (other than the Annual Bonus),
                commissions, severance payments and overtime, but excluding stock
                option
                income, relocation expenses, non-monetary awards, fringe benefits,
                retainers, directors fees and other fees, pay in lieu of vacations,
                insurance premiums paid by an Employer, insurance benefits paid to
                the
                Participant or his or her beneficiary, Employer contributions to
                qualified
                or nonqualified plans and automobile and other allowances paid to
                a
                Participant for employment services rendered (whether or not such
                allowances are included in the Employee's gross income).  Base
                Annual Salary shall be calculated before reduction for compensation
                voluntarily deferred or contributed by the Participant pursuant to
                all
                qualified or non-qualified plans and shall be calculated to include
                amounts not otherwise included in the Participant's gross income
                under
                Code Sections 125, 402(e)(3), or 402(h) pursuant to plans established
                by
                any Employer; provided however that all such amounts will be included
                in
                compensation only to the extent that, had there been no such plan,
                the
                amount would have been payable in cash to the
                Employee.

            

    

    

    
      	
              1.7

            	
              "Beneficiary"
                shall mean one or more persons, trusts, estates or other entities,
                designated in accordance with Article 9, that are entitled to receive
                benefits under this Plan upon the death of a
                Participant.

            

    

    

    
      	
              1.8

            	
              "Beneficiary
                Designation Form" shall mean the form, established from time to time
                by
                the Committee, that a Participant completes, signs and returns to
                the
                Committee to designate one or more
                Beneficiaries.

            

    

    

    
      	
              1.9

            	
              "Board"
                shall mean the board of directors of the
                Company.

            

    

    

    
      	
              1.10

            	
              "Change
                in Control" shall mean a transaction or event in which, after the
                effective date of the Plan, (i) the Company shall merge or consolidate
                with any other corporation and shall not be the surviving corporation;
                (ii) the Company shall transfer all or substantially all of its assets
                to
                any other person; or (iii) any person shall have become the beneficial
                owner of more than 50% of the voting power of outstanding voting
                securities of the Company.

            

    

    

    
      	
              1.11

            	
              "Claimant"
                shall have the meaning set forth in Section
                14.1.

            

    

    

    
      	
              1.12

            	
              "Code"
                shall mean the Internal Revenue Code of 1986, as it may be amended
                from
                time to time.

            

    

    

    
      	
              1.13

            	
              "Committee"
                shall mean the committee described in Article
                12.

            

    

    

    
      	
              1.14

            	
              "Company"
                shall mean Sierra Health Services, Inc., a Nevada
                corporation.

            

    

    

    
      	
              1.15

            	
              "Company
                Matching Account" shall mean the sum of all of a Participant's Annual
                Company Matching Amounts plus amounts credited and debited in accordance
                with all the applicable crediting provisions of this Plan, less all
                distributions made to the Participant or his or her Beneficiary pursuant
                to this Plan that relate to his or her Company Matching
                Account.  This account shall be a bookkeeping entry only and
                shall be utilized solely as a device for the measurement and determination
                of the amounts to be paid to the Participant pursuant to this
                Plan.

            

    

    

    
      	
              1.16

            	
              "Company
                Restoration Account" shall mean the sum of all of a Participant's
                Annual
                Company Restoration Amounts plus amounts credited and debited in
                accordance with all the applicable provisions of the Plan, less all
                distributions made to the Participant or his or her Beneficiary pursuant
                to the Plan that relate to his or her Company Restoration
                Account.  This account shall be a bookkeeping entry only and
                shall be utilized solely as a device for the measurement and determination
                of the amounts to be paid to the Participant pursuant to this
                Plan.

            

    

    

    
      	
              1.17

            	
              "Deferral
                Account" shall mean the sum of all of a Partici­pant's Annual Deferral
                Amounts, plus amounts credited and debited in accordance with all
                the
                applicable provisions of the Plan, less all distributions made to
                the
                Participant or his or her Beneficiary pursuant to the Plan that relate
                to
                his or her Deferral Account. This account shall be a bookkeeping
                entry
                only and shall be utilized solely as a device for the measurement
                and
                determination of the amounts to be paid to the Participant pursuant
                to
                this Plan.

            

    

    

    
      	
              1.18

            	
              "Deduction
                Limitation" shall mean the following described limitation on a benefit
                that may otherwise be distributable pursuant to the provisions of
                this
                Plan.  Except as otherwise provided, this limitation shall be
                applied to all distributions that are "subject to the Deduction
                Limitation" under this Plan. If an Employer determines in good faith
                prior
                to a Change in Control that there is a reasonable likelihood that
                any
                compensation paid to a Participant for a taxable year of the Employer
                would not be deductible by the Employer solely by reason of the limitation
                under Code Section 162(m), then to the extent deemed necessary by
                the
                Employer to ensure that the entire amount of any distribution to
                the
                Participant pursuant to this Plan prior to the Change in Control
                is
                deductible, the Employer may defer all or any portion of a distribution
                under this Plan. Any amounts deferred pursuant to this limitation
                shall be
                credited and debited with additional amounts in accordance with Section
                3.8 below, even if such amount is being paid out in
                installments.  The amounts so deferred adjusted to reflect
                amounts credited and debited thereon shall be distributed to the
                Participant or his or her Beneficiary (in the event of the Participant's
                death) at the earliest possible date, as determined by the Employer
                in
                good faith, on which the deductibility of compensation paid or payable
                to
                the Participant for the taxable year of the Employer during which
                the
                distribution is made will not be limited by Section 162(m), or if
                earlier,
                the effective date of a Change in
                Control.  Notwith­stand­ing anything to the contrary in
                this Plan, the Deduction Limitation shall not apply to any distributions
                made after a Change in Control.

            

    

     

    
      	
              1.19

            	
              "Disability"
                shall mean a period of disability during which a Participant qualifies
                for
                disability benefits under the Participant's Employer's long-term
                disability plan, or, if a Participant does not participate in such
                a plan,
                a period of disability during which the Participant would have qualified
                for disability benefits under such a plan had the Participant been
                a
                participant in such a plan, as determined in the sole discretion
                of the
                Committee.  If the Participant's Employer does not sponsor such
                a plan, or discontinues to sponsor such a plan, Disability shall
                be
                determined by the Committee in its sole
                discretion.

            

    

    

    
      	
              1.20

            	
              "Disability
                Benefit" shall mean the benefit set forth in Article
                8.

            

    

    

    
      	
              1.21

            	
              "Election
                Form" shall mean the form established from time to time by the Committee
                that a Participant completes, signs and returns to the Committee
                to make
                an election under the Plan.

            

    

    

    
      	
              1.22

            	
              "Employee"
                shall mean a person who is an employee of any
                Employer.

            

    

    

    
      	
              1.23

            	
              "Employer(s)"
                shall mean the Company and/or any of its subsidiaries (now in existence
                or
                hereafter formed or acquired) that have been selected by the Board
                to
                participate in the Plan and have adopted the
                Plan.

            

    

    

    
      	
              1.24

            	
              "ERISA"
                shall mean the Employee Retirement Income Security Act of 1974, as
                amended
                from time to time.

            

    

    

    
      	
              1.25

            	
              "401(k)
                Plan" shall be that certain Sierra Health Services, Inc. Profit
                Sharing/401(k) Plan & Trust, dated January 1, 1989 and adopted by the
                Company.

            

    

    

    
      	
              1.26

            	
              "Monthly
                Installment Method" shall be an installment payment method over the
                duration selected by the Participant in accordance with this Plan,
                calculated as follows:  The Participant's Account Balance, as of
                the date of the Participant's Retirement, death, Disability or Termination
                of Employment, shall be multiplied by a fraction, the numerator of
                which
                is 1 and the denominator of which is the number of periods over which
                the
                installment payments shall be paid.  The result of this
                multiplication shall be the amount of each installment payment for
                the
                Plan Year in which the Participant Retired, died, suffered a Disability
                or
                experienced a Termination of Employment and this amount shall be
                paid
                starting on the first day of the month following the Participant's
                Retirement, Death, Disability or Termination of Employment and shall
                continue to be paid on the first day of each month thereafter during
                that
                Plan Year.  For each subsequent Plan Year during the installment
                payment period, the Participant's Account Balance shall be determined
                as
                of January 1 of that Plan Year, in accordance with Section 3.8, after
                taking into account all previous installment payments, and such balance
                shall be multiplied by the fraction described above, except that
                the
                denominator shall be the number of remaining periods over which the
                installment payments are to be paid. The resulting amount shall be
                the
                amount of each installment payment for the Plan Year, which amount
                shall
                be paid on the first day of each month during the Plan Year.  If
                a Participant has a positive Account Balance after the end of the
                elected
                installment payment period, the remaining Account Balance shall be
                paid in
                a lump sum on the first day of the month following the month in which
                the
                installment period ends.  If any installment, if paid, would
                reduce the Participant's Account Balance to zero or below, that
                installment payment shall be reduced so that the Participant's Account
                Balance does not go below zero and all future installment payments
                shall
                cease.

            

    

    
      	
              1.27

            	
              "Participant"
                shall mean any person (i) who, as an Employee, is selected to participate
                in the Plan, (ii) who elects to participate in the Plan, (iii) who
                signs a
                Plan Agreement, an Election Form and a Beneficiary Designation Form,
                (iv)
                whose signed Plan Agreement, Election Form and Beneficiary Designation
                Form are accepted by the Committee, (v) who commences participation
                in the
                Plan, and (vi) whose Plan Agreement has not terminated. A spouse
                or former
                spouse of a Participant shall not be treated as a Participant in
                the Plan,
                even if he or she has an interest in the Participant's benefits under
                the
                Plan under applicable law or as a result of property settlements
                resulting
                from legal separation or divorce.

            

    

    

    
      	
              1.28

            	
              "Plan"
                shall mean the Company's Deferred Compensation Plan, which shall
                be
                evidenced by this instrument and by each Plan Agreement, as they
                may be
                amended from time to time.

            

    

    

    
      	
              1.29

            	
              "Plan
                Agreement" shall mean a written agreement, as may be amended from
                time to
                time, which is entered into by and between an Employer and a
                Participant.  The terms of any Plan Agreement may vary any of
                the terms set forth in this Plan and such changes shall be binding
                on the
                Employer and the Participant if the Plan Agreement is signed by the
                Participant and accepted by the Employer.  The Plan Agreement
                executed by a Participant and accepted by the Employer shall provide
                for
                the entire benefit to which such Participant is entitled under the
                Plan;
                should there be more than one Plan Agreement, the Plan Agreement
                bearing
                the latest date of acceptance by the Employer shall supersede all
                previous
                Plan Agreements in their entirety and shall govern the agreement
                between
                the parties.

            

    

    

    
      	
              1.30

            	
              "Plan
                Year" shall, for the first Plan Year, begin on May 1, 1996 and end
                on
                December 31, 1996. For each Plan Year thereafter, the Plan Year shall
                begin on January 1 of each year and continue through December
                31.

            

    

    

    
      	
              1.31

            	
              "Pre-Retirement
                Survivor Benefit" shall mean the benefit set forth in Article
                6.

            

    

    

    
      	
              1.32

            	
              "Retirement,"
                "Retire(s)" or "Retired" shall mean, with respect to an Employee,
                severance from employment from all Employers for any reason other
                than a
                leave of absence, death or Disability on or after age sixty-five
                (65) or
                on or after age fifty-five (55) with ten (10) Years of Service, subject
                to
                Section 10.3.

            

    

     

    
      	
              1.33

            	
              "Retirement
                Benefit" shall mean the benefit set forth in Article
                5.

            

    

    

    
      	
              1.34

            	
              "Short-Term
                Payout" shall mean the payout set forth in Section
                4.1.

            

    

     

    
      
        

      

    

     

    
      	
              1.35

            	
              "Termination
                Benefit" shall mean the benefit set forth in Article
                7.

            

    

    

    
      	
              1.36

            	
              "Termination
                of Employment" shall mean the ceasing of employment with all Employers,
                voluntarily or involuntarily, for any reason other than Retirement,
                Disability, death or an authorized leave of absence, subject to Section
                10.3.

            

    

    

    
      	
              1.37

            	
              "Trust"
                shall mean the trust established pursuant to that certain Master
                Trust
                Agreement, dated as of May 1, 1996 between the Company and the trustee
                named therein, as amended from time to
                time.

            

    

    

    
      	
              1.38

            	
              "Unforeseeable
                Financial Emergency" shall mean an unanticipated emergency that is
                caused
                by an event beyond the control of the Participant that would result
                in
                severe financial hardship to the Participant resulting from (i) a
                sudden
                and unexpected illness or accident of the Participant or a dependent
                of
                the Participant, (ii) a loss of the Participant's property due to
                casualty, or (iii) such other extraordinary and unforeseeable
                circumstances arising as a result of events beyond the control of
                the
                Participant, all as determined in the sole discretion of the
                Committee.

            

    

    

    
      	
              1.39

            	
              "Unvested
                Accrued Amounts" shall mean the part of a Participant's Company Matching
                Account and Company Restoration Account which is not vested under
                Section
                3.7.

            

    

    

    
      	
              1.40

            	
              "Vested
                Company Matching Account" shall have the meaning set forth in Section
                3.7.

            

    

    

    
      	
              1.41

            	
              "Vested
                Company Restoration Account" shall have the meaning set forth in
                Section
                3.7.

            

    

    

    
      	
              1.42

            	
              "Years
                of Service" shall mean the total number of full years in which a
                Participant has been employed by one or more Employers. For purposes
                of
                this definition, a year of employment shall be a 365 day period (or
                366
                day period in the case of a leap year) that, for the first year of
                employment, commences on the Employee's date of hiring and that,
                for any
                subsequent year, commences on an anniversary of that hiring date.
                Any
                partial year of employment shall not be
                counted.

            

    

     

    ARTICLE
      2

    Selection,
      Enrollment, Eligibility

    

    
      	
              2.1

            	
              Selection
                by Committee.  Participation in the Plan shall be limited to
                a select group of management or highly compensated Employees of the
                Employers, as determined by the Committee in its sole
                discretion.  From that group, the Committee shall select, in its
                sole discretion, Employees to participate in the Plan.  For this
                purpose, the term "highly compensated" shall be interpreted in a
                manner
                consistent with regulations and other guidance under the
                Code.

            

    

     

    
      	
              2.2

            	
              Enrollment
                Requirements.  As a condition to participation, each
                selected Employee shall complete, execute and return to the Committee,
                within 30 days of selection, a Plan Agreement, an Election Form and
                a
                Beneficiary Designation Form. In addition, the Committee shall establish
                from time to time such other enrollment requirements as it determines
                in
                its sole discretion are necessary.

            

    

    

    
      	
              2.3

            	
              Eligibility;
                Commencement of Participation.  Provided an Employee
                selected to participate in the Plan has met all enrollment requirements
                set forth in this Plan and required by the Committee, including returning
                all required documents to the Committee within 30 days of selection,
                that
                Employee shall commence participation in the Plan on the first day
                of the
                next month which begins following the date the Employee completes
                all
                enrollment requirements.  If an Employee fails to meet all such
                requirements within the required 30 day period, that Employee shall
                not be
                eligible to participate in the Plan until the first day of a month
                during
                the Plan Year following the delivery to and acceptance by the Committee
                of
                the required documents.

            

    

    

    
      	
              2.4

            	
              Termination
                of Participation and/or Deferrals.  If the Committee
                determines in good faith that a Participant no longer qualifies as
                a
                member of a select group of management or highly compensated employees,
                as
                membership in such group is determined in accordance with Section
                2.1 or
                otherwise under Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA,
                the
                Committee shall have the right, in its sole discretion, to (i) terminate
                any deferral election the Participant has made for the Plan Year
                in which
                the Participant's membership status changes, (ii) prevent the Participant
                from making future deferral elections and/or (iii) immediately distribute
                the Participant's then Account Balance, determined as if there has
                occurred a Termination of Employment and terminate the Participant's
                participation in the Plan.  If the Committee chooses to
                terminate the Participant's participation in the Plan, the Committee
                may,
                in its sole discretion, reinstate the Participant to full Plan
                participation at such time in the future as the Participant again
                becomes
                a member of the select group described above.  The foregoing
                notwithstanding, if the Participant ceases to qualify as "highly
                compensated" under Section 2.1, the Committee may permit the Participant
                to continue participation for a reasonable period thereafter in order
                to
                permit the Participant an opportunity to reattain "highly compensated"
                status.

            

    

     

    ARTICLE
      3

    Deferral
      Commitments/Company Matching/Crediting/Taxes

    

    
      	
              3.1

            	
              Minimum
                Deferral.

            

    

    
      	
               

            	
              (a)

            	
              Minimum.  For
                each Plan Year, a Participant may elect to defer, as his or her Annual
                Deferral Amount, a minimum of $2,000 from either his or her Base
                Annual
                Salary or Annual Bonus.  If an election is made for less than
                the stated minimum amount, or if no election is made, the amount
                deferred
                shall be zero.

            

    

    

    
      	
               

            	
              (b)

            	
              Short
                Plan Year.  If a Participant first becomes a Participant
                after the first day of a Plan Year, or in the case of the first Plan
                Year
                of the Plan itself, the minimum deferral shall be an amount equal
                to the
                minimum set forth above, multiplied by a fraction, the numerator
                of which
                is the number of complete months remaining in the Plan Year and the
                denominator of which is 12.

            

    

    

    3.2           Maximum
      Deferral.

    

    
      	
                              
                (a)  

            	
              Maximum.  For
                each Plan Year, a Participant may elect to defer, as his or her Annual
                Deferral Amount, Base Annual Salary and/or Annual Bonus up to the
                following maximum percentages for each deferral
                elected:

            

    

    

    
      	 	 	 	 Maximum	
               

            
	
              Deferral

            	 	 	 Amount	
            
	 	 	 	 	 
	
              Base
                Annual Salary

            	 90%	
               

            
	
              Annual
                Bonus

            	 90%	
            

    

    

    
      	
               

            	
              (b)

            	
              Short
                Plan Year.  If a Participant first becomes a Participant
                after the first day of a Plan Year, or in the case of the first Plan
                Year
                itself, for such Plan Year only, a Participant may elect to defer,
                as his
                or her Annual Deferral Amount, Base Annual Salary and/or Annual Bonus
                that
                accrue after the date of entry into the Plan, a dollar amount up
                to an
                amount equal to the limits set forth in Section 3.2(a) above multiplied
                by
                such Participant's total amount of Base Annual Salary and/or Annual
                Bonus
                for the entire Plan Year.

            

    

    

    
      	
              3.3

            	
              Election
                to Defer; Effect of Election
                Form.

            

    

    

    
      	
               

            	
              (a)

            	
              First
                Plan Year.  In connection with a Participant's commencement
                of participation in the Plan, the Participant shall make an irrevocable
                deferral election for the Plan Year in which the Participant commences
                participation in the Plan, along with such other elections as the
                Committee deems necessary or desirable under the Plan. For these
                elections
                to be valid, the Election Form must be completed and signed by the
                Participant, timely delivered to the Committee (in accordance with
                Section
                2.3 above), and accepted by the
                Committee.

            

    

    

    
      	
               

            	
              (b)

            	
              Subsequent
                Plan Years.  For each succeeding Plan Year, an irrevocable
                deferral election for that Plan Year, and such other elections as
                the
                Committee deems necessary or desirable under the Plan, shall be made
                by
                timely delivering to the Committee, in accordance with its rules
                and
                procedures, before the end of the Plan Year
                preceding the Plan Year for which the election is made, a new Election
                Form.  If no such Election Form is timely delivered for a Plan
                Year, no Annual Deferral Amount shall be withheld for that Plan
                Year.

            

    

    

    A
      Participant may amend his or her Election Form for a particular Plan Year to
      increase the amount of deferral, one time during the Plan Year, only as provided
      in this paragraph.  For the amended Election Form to be valid, the
      amended Election Form must be completed and signed by the Participant, delivered
      to the Committee, and accepted by the Committee.  The Committee has
      sole discretion to accept, reject, or otherwise rule on the amended Election
      Form.  The deferral amount or percentage that the Participant includes
      on his or her reused Election Form, shall be limited to the portion of such
      Participant’s Base Annual Salary not yet earned by the Participant as of the
      date the Participant submits the revised Election Form to the Committee for
      acceptance.

    

    
      	
              3.4

            	
              Withholding
                of Annual Deferral Amounts.  For each Plan Year, the Base
                Annual Salary portion of the Annual Deferral Amount shall be withheld
                in
                equal amounts from each regularly scheduled Base Annual Salary payroll,
                commencing at the earliest practicable payroll after participation
                begins.  The Annual Bonus portion of the Annual Deferral Amount
                shall be withheld at the time the Annual Bonus is or otherwise would
                be
                paid to the Participant, whether or not this occurs during the Plan
                Year
                itself.

            

    

    

    
      	
              3.5

            	
              Annual
                Company Matching Amount.  With respect to the 2006 Plan Year
                and later Plan Years, if a Participant participates in the 401(k)
                Plan for
                that year, then the Participant’s Annual Company Matching Amount for such
                Plan Year shall be equal to the amount that the Company would have
                contributed for that year as a matching contribution to the Participant’s
                401(k) Plan account, computed as if the Participant did not defer
                the
                Participant’s Annual Deferral Amount, less the actual Company matching
                contribution to the Participant’s 401(k) Plan account for that year. With
                respect to Plan Years prior to and including the 1999 Plan Year,
                if, and
                only if, a Participant participates in the 401(k) Plan to the maximum
                extent possible under the limits applicable to the Plan for the Plan
                Year,
                the Participant's Annual Company Matching Amount for such Plan Year
                shall
                be equal to 50% of the Participant's Annual Deferral Amount for such
                Plan
                Year, up to an amount that does not exceed the lesser of 5% of the
                Participant's Base Annual Salary for 1999 and earlier Plan Years
                or 50% of
                the IRC 402(g)(1) limit in the effect for the Plan Year, reduced
                by the
                amount of any Company matching contributions made to the 401(k) Plan
                on
                his or her behalf for the plan year of the 401(k) Plan that corresponds
                to
                the Plan Year. The Annual Company Matching Amount shall be credited
                to the
                Participant's Company Matching Account as of the first day of February
                of
                the Plan Year following the Plan Year to which it relates. Notwithstanding
                the above, if a Participant is not employed by an Employer as of
                the last
                day of a Plan Year other than by reason of his or her Retirement,
                Disability or death, the Annual Company Matching Amount for such
                Plan Year
                shall be zero.  In the event of Retirement, Disability or death,
                a Participant shall be credited with the Annual Company Matching
                Amount
                for the Plan Year in which he or she Retires, dies or becomes
                disabled.  The foregoing notwithstanding, for any Plan Year
                from
                the 2000 Plan Year through the 2005 Plan Year, no Annual Company
                Matching
                Amount shall be credited to the Participant's Company Matching Account,
                although prior Annual Company Matching Amounts credited to such Account
                shall remain subject to the
                Plan.

            

    

     

    
      	
              3.6

            	
              Annual
                Company Restoration Amount.  The Participant's Annual
                Company Restoration Amount for each Plan Year beginning on or after
                January 1, 1997 shall be equal to the amount of employer contributions
                other than matching contributions under the 401(k) Plan which would
                have
                been made on the Participant's behalf and allocated to the Participant's
                account on or after July 1, 1997 for such Plan Year but for one or
                more
                limitations imposed by the 401(k) Plan pursuant to the Code, including
                but
                not limited to any such amounts resulting from the application of
                the
                compensation limitations contained in Code Section 401(a)(17) or
                the
                limitations contained in Code Section 415.  For purposes of this
                Section 3.6, employer contributions under the 401(k) Plan exclude
                contributions resulting from the cash or deferred arrangement under
                the
                401(k) Plan but include contributions resulting from the reallocation
                of
                prior employer contributions (other than matching contributions)
                forfeited
                by other 401(k) Plan participants.  The Annual Company
                Restoration Amount shall be credited to the Participant's Company
                Restoration Account as of the date or dates such amounts would have
                been
                allocated to the Participant's account(s) under the 401(k) Plan if
                such
                amounts had in fact been allocated under the 401(k) Plan.  The
                foregoing notwithstanding, if a Participant is not employed by an
                Employer
                as of the last day of a Plan Year other than by reason of his or
                her
                Retirement, Disability or death, the Annual Company Restoration Amount
                for
                such Plan Year shall be zero.  In the event of Retirement,
                Disability or death, a Participant shall be credited with the Annual
                Company Restoration Amount for the Plan Year in which he or she Retires,
                dies or becomes disabled.  The Participant's Annual Company
                Restoration Amount for each Plan Year prior to the Plan Year beginning
                January 1, 1997 shall be zero.  It is understood that the
                Company will discontinue employer contributions other than matching
                contributions under the 401(k) Plan in Plan Years after 1999, so
                that no
                amount will be credited as an Annual Company Restoration Amounts
                in
                respect of such Plan Years.

            

    

    

    
      	
              3.7

            	
              Vested
                Company Matching Account, Vested Company Restoration Account and
                Deferral
                Account.  With respect to all benefits under this Plan other
                than the Termination Benefit, a Participant's Vested Company Matching
                Account shall equal 100% of such Participant's Company Matching Account
                and a Participant's Vested Company Restoration Account shall equal
                100% of
                such Participant's Company Restoration Account.  With respect to
                the Termination Benefit, in the case of a Termination of Employment
                prior
                to July 1, 1999, the vesting of a Participant's Company Matching
                Account
                and Company Restoration Account shall be governed by the terms of
                this
                Plan as in effect at the time of such Termination of
                Employment.  With respect to the Termination Benefit, in the
                case of a Termination of Employment on or after July 1, 1999, a
                Participant's Company Matching Account and Company Restoration Account
                shall vest on the basis of the Partici­pant's Years of Service at the
                time the Participant experiences a Termination of Employment, in
                accordance with the following schedule for balances resulting from
                Company
                Matching Amounts and Company Restoration Amounts for the Plan Year
                after
                1999:

            

    

    

    
      	 	 	 	
              Vested
                Percentage of

            	 
	
              Years
                of Service at Date of 

              Termination
                of Employment

            	 	 	
              Company
                Matching Account and

              Company
                Restoration Account

            
	 	 	 	 	 	 
	
              Less
                than 1 year

            	 	 	 	
              0%

            	 	 
	
              1
                year or more, but less than 2

            	 	 	 	
              33%

            	 	 
	
              2
                years or more, but less than 3

            	 	 	 	
              66%

            	 	 
	
              3
                years or more

            	 	 	 	
              100%

            	 	 

    

    

    
       

      
        
          

        

      

       

    

    The
      foregoing notwithstanding, after a Change in Control, a Participant's Vested
      Company Matching Account shall equal 100% of such Participant's Company Matching
      Account and a Participant's Vested Company Restoration Account shall equal
      100%
      of such Participant's Company Restoration Account.  A Participant's
      Deferral Account shall always be 100% vested.

    

    
      	
              3.8

            	
              Crediting/Debiting
                of Account Balances.  In accordance with, and subject to,
                the rules and procedures that are established from time to time by
                the
                Committee, in its sole discretion, amounts shall be credited or debited
                to
                a Participant's Account Balance (and to the Participant's Unvested
                Accrued
                Amounts) in accordance with the following
                rules:

            

    

    

    
      	
               

            	
              (a)

            	
              Election
                of Measurement Funds.  A Participant, in connection with his
                or her initial deferral election in accordance with Section 3.3(a)
                above,
                shall elect, on the Election Form, one or more Measurement Fund(s)
                (as
                described in Section 3.8(c) below) to be used to determine the additional
                amounts to be credited or debited to his or her Account Balance (and
                Unvested Accrued Amounts) from the date on which the Participant
                commences
                participation in the Plan and continuing thereafter, unless changed
                in
                accordance with the next sentence.  Commencing with the January
                1 or July 1 ("Investment Election Date") that follows the Participant's
                commencement of participation in the Plan and on each subsequent
                Investment Election Date during which the Participant participates
                in the
                Plan, no later than the day before an Investment Election Date, the
                Participant may (but is not required to) elect, by submitting an
                Election
                Form to the Committee that is accepted by the Committee, to add or
                delete
                one or more Measurement Fund(s) to be used to determine the amounts
                to be
                credited or debited to his or her Account Balance (and Unvested Accrued
                Amounts), or to change the portion of his or her Account Balance
                (and
                Unvested Accrued Amounts) allocated to each previously or newly elected
                Measurement Fund.  If an election is made in accordance with the
                previous sentence, it shall apply to the next Investment Election
                Date and
                continue thereafter, unless changed in accordance with the previous
                sentence.   Notwith­stand­ing the foregoing, the
                maximum transfer that may be made from the Declared Rate Measurement
                Fund
                to another Measurement Fund in any one Plan Year cannot exceed 20%
                of the
                maximum balance in the Participant's account in the Declared Rate
                Measurement Fund in the current Plan Year and the four prior Plan
                Years, provided that this restriction shall no longer apply upon
                termination of the Declared Rate Measurement Fund in accordance with
                Section 3.8(c).

            

    

    

    
      	
               

            	
              (b)

            	
              Proportionate
                Allocation.  In making any election described in Section
                3.8(a) above, the Participant shall specify on the Election Form,
                in whole
                percentage points (1%), the percentage of his or her Account Balance
                (and
                Unvested Accrued Amounts) to be allocated to a Measurement Fund (as
                if the
                Participant was making an investment in that Measurement Fund with
                that
                portion of his or her Account Balance and Unvested Accrued
                Amounts).

            

    

    

    
      	
               

            	
              (c)

            	
              Measurement
                Funds.  The Participant may elect one or more measurement
                funds, based on certain mutual funds (the "Measurement Funds"), for
                the
                purpose of crediting or debiting amounts to his or her Account Balance
                (and Unvested Accrued Amounts).  The Committee shall select the
                mutual funds that are to be used as Measurement Funds.  As
                necessary, the Committee may, in its sole discretion, discontinue,
                substitute or add a Measurement Fund at any time.  Each such
                action will take effect as of the first day of the calendar quarter
                that
                follows by thirty (30) days the day on which the Committee gives
                Participants advance written notice of such change.  In
                addition, a Declared Rate Measurement Fund shall be maintained until
                December 31, 1999, under which interest shall be credited at a rate
                as
                specified by the Company on the November 1 of the year prior to the
                Plan
                Year for which the amount of interest is being determined; provided,
                however, that as of January 1, 2000, the Declared Rate Measurement
                Fund
                will be terminated and all balances therein shall be transferred
                to such
                other Measurement Funds as may have been elected by the Participant
                or, in
                the absence of any election, to a Measurement Fund consisting of
                one or
                more Guaranteed Interest Contracts.

            

    

    

    
      	
               

            	
              (d)

            	
              Crediting
                or Debiting Method.  The performance of each selected
                Measurement Fund (either positive or negative) will be determined
                by the
                Committee in its sole discretion based on the performance of the
                Measurement Funds themselves or, in the case of the Declared Rate
                Measurement Fund (prior to its termination), based on the amount
                of
                accrued interest credited to the fund.  A Participant's Account
                Balance (and Unvested Accrued Amounts) shall be credited or debited
                based
                on such performance of the Measurement Funds as determined by the
                Committee in its sole discretion.  As of each Investment
                Election Date, the Committee shall distribute to the Participants
                a
                statement of their respective Account Balances (and Unvested Accrued
                Amounts).  Furthermore, in the event of a Participant's
                termination of employment or any other event requiring a determination
                of
                the Participant's Benefit or the value of a Participant's Account
                Balance,
                the Account Balance shall be determined based on the performance
                of the
                relevant Measurement Fund(s) through the last date of the pay period
                during which the event occurs and shall not be further adjusted
                thereafter.

            

    

    
      	
               

            	
              (e)

            	
              No
                Actual Investment.  Notwithstanding any other provision of
                this Plan that may be interpreted to the contrary, the Measurement
                Funds
                are to be used for measurement purposes only, and a Participant's
                election
                of any such Measurement Fund, the allocation to his or her Account
                Balance
                (and Unvested Accrued Amounts) thereto, the calculation of additional
                amounts and the crediting or debiting of such amounts to a
                Partici­pant's Account Balance (and Unvested Accrued Amounts) shall
                not be considered or construed in any manner as an actual investment
                of
                his or her Account Balance (or Unvested Accrued Amounts) in any such
                Measurement Fund.  In the event that the Company or the Trustee
                (as that term is defined in the Trust), in its own discretion, decides
                to
                invest funds in any or all of the Measurement Funds, no Participant
                shall
                have any rights in or to such investments themselves.  Without
                limiting the foregoing, a Participant's Account Balance (and Unvested
                Accrued Amounts) shall at all times be a bookkeeping entry only and
                shall
                not represent any investment made on his or her behalf by the Company
                or
                the Trust; the Participant shall at all times remain an unsecured
                creditor
                of the Company.

            

    

    

    
      	
              3.9

            	
              FICA,
                Withholding and Other Taxes.  For each Plan Year in which an
                Annual Deferral Amount is being withheld or an Annual Company Matching
                Amount or Annual Company Restoration Amount is credited to a Participant,
                the Participant's Employer(s) shall withhold from that portion of
                the
                Participant's Base Annual Salary and/or Annual Bonus that is not
                being
                deferred, in a manner determined by the Employer(s), the Participant's
                share of FICA and other employment taxes.  If necessary, the
                Committee shall reduce the Annual Deferral Amount in order to comply
                with
                this Section 3.9.  In addition, the Participant's Employer(s) or
                the Trust, shall withhold from any payments made to a Participant
                under
                this Plan all federal, state and local income, employment and other
                taxes
                required to be withheld in connection with such payments, in amounts
                and
                in a manner to be determined in the sole discretion of the Employer(s)
                or
                the Trust.

            

    

    

    
      	
              3.10

            	
              Rollovers
                From Prior Deferred Compensation Plan.  A Participant who
                participated in the Company's prior nonqualified deferred compensation
                plan shall have the right, under such rules and at such times as
                are
                prescribed by the Committee, to roll over the benefit that the Participant
                is entitled to receive pursuant to such prior nonqualified deferred
                compensation plan so that such amount shall be held and administered
                pursuant to the terms of this Plan and shall be received at the same
                time
                that benefits are received pursuant to this
                Plan.

            

    

    

    

    ARTICLE
      4

    Short-Term
      Payout; Unforeseeable Financial Emergencies;

    Withdrawal
      Election

    

    
      	
              4.1

            	
              Short-Term
                Payout.  In connection with each election to defer an Annual
                Deferral Amount, a Participant may elect to receive a future "Short-Term
                Payout" from the Plan with respect to that Annual Deferral
                Amount.  Subject to the Deduction Limitation, the Short-Term
                Payout shall be a lump sum payment in an amount that is equal to
                the
                Annual Deferral Amount plus amounts credited or debited in the manner
                provided in Section 3.8 above on that amount, determined at the time
                of the Short-Term Payout becomes payable. If the Annual Deferral
                Amount is
                deferred in the 1999 Plan Year or an earlier Plan Year, each
                Short-Term Payout elected shall be paid, subject to the Deduction
                Limitation, within
                60 days of the first day of the Plan Year that is at least four years
                after the last day of the Plan Year in which the Annual Deferral
                Amount is
                actually deferred, subject to the terms and conditions of this
                Plan.  If the Annual Deferral Amount is deferred after the 1999
                Plan Year, each Short-Term Payout elected shall be paid, subject
                to the
                Deduction Limitation, within 60 days of the first day of the Plan
                Year
                elected by the Participant that is two or more years after the last
                day of
                the Plan Year in which the Annual Deferral Amount is actually deferred,
                subject to the terms and conditions of this Plan.  By way of
                example, if a Short-Term Payout is elected for amounts that are deferred
                in the Plan Year commencing January 1, 1997, the Short-Term Payout
                becomes
                payable within 60 days after January 1, 2002; if a Short-Term Payout
                is
                elected for amounts that are deferred in the Plan Year commencing
                January
                1, 2000, the earliest that the Participant could elect to receive
                such
                Short-Term Payout would be 60 days after January 1, 2003 (although
                the
                Participant would be permitted to elect a greater number of years
                of
                deferral for the Short-Term
                Payout).

            

    

    

    
      	
              4.2

            	
              Other
                Benefits Take Precedence Over Short-Term Payout.  Should an
                event occur that triggers a benefit under Articles 5, 6, 7 or  8
                or Section 16.14, any Annual Deferral Amount, plus amounts credited
                or
                debited thereon, that is subject to a Short-Term Payout election
                under
                Section 4.1 shall not be paid in accordance with Section 4.1 but
                shall be
                paid in accordance with the other applicable Article or
                Section.

            

    

    

    
      	
              4.3

            	
              Withdrawal
                Payout/Suspensions for Unforeseeable Financial
                Emergencies.  If the Participant experiences an
                Unforeseeable Financial Emergency, the Participant may petition the
                Committee to (i) suspend any deferrals required to be made by a
                Participant and/or (ii) receive a partial or full payout from the
                Plan.  The payout shall not exceed the lesser of the
                Participant's Account Balance, calculated as if such Participant
                were
                receiving a Termination Benefit, or the amount reasonably needed
                to
                satisfy the Unforeseeable Financial Emergency.  If, subject to
                the sole discretion of the Committee, the petition for a suspension
                and/or
                payout is approved, suspension shall take effect upon the date of
                approval
                and any payout shall be made within 60 days of the date of
                approval.  The payment of any amount under this Section 4.3
                shall not be subject to the Deduction
                Limitation.

            

    

    

    
      	
              4.4

            	
              Withdrawal
                Election.  A Participant may elect, at any time, to withdraw
                all of his or her Account Balance, less a withdrawal penalty equal
                to 7%
                of such amount (the net amount shall be referred to as the "Withdrawal
                Amount").  This election can be made at any time, before or
                after Retirement, Disability, death or Termination of Employment,
                and
                whether or not the Participant (or Beneficiary) is in the process
                of being
                paid pursuant to an installment payment schedule.  If made
                before Retirement, Disability or death, a Participant's Withdrawal
                Amount
                shall be his or her Account Balance calculated as if there had occurred
                a
                Termination of Employment as of the day of the election.  No
                partial withdrawals of the Withdrawal Amount shall be
                allowed.  The Participant shall make this election
                by giving the Committee advance written notice of the election in
                a form
                determined from time to time by the Committee.  The Participant
                shall be paid the Withdrawal Amount within 60 days of his or her
                election.  Once the Withdrawal Amount is paid, the Participant's
                participation in the Plan shall terminate, the Participant's Unvested
                Accrued Amounts will be forfeited and the Participant shall not be
                eligible to participate in the Plan until the first month that begins
                more
                than one year after his or her participation in the Plan terminated,
                at
                which time he or she will be eligible to reenroll on terms similar
                to
                those applicable to a newly hired employee.  The payment of this
                Withdrawal Amount shall not be subject to the Deduction
                Limitation.

            

    

     

    ARTICLE
      5

    Retirement
      Benefit

    

    
      	
              5.1

            	
              Retirement
                Benefit.  Subject to the Deduction Limitation, a Participant
                who Retires shall receive, as a Retirement Benefit, his or her Account
                Balance.

            

    

    

    
      	
              5.2

            	
              Payment
                of Retirement Benefit.  A Participant, in connection with
                his or her commence­ment of participation in the Plan, shall elect on
                an Election Form to receive the Retirement Benefit in a lump sum
                or
                pursuant to a Monthly Installment Method of 60, 120 or 180
                months.  The Participant may annually change his or her election
                to an allowable alternative payout period by submitting a new Election
                Form to the Committee, provided that any such Election Form is submitted
                at least one year prior to the Participant's Retirement and is accepted
                by
                the Committee in its sole discretion.  The Election Form most
                recently accepted by the Committee shall govern the payout of the
                Retirement Benefit.  If a Participant does not make any election
                with respect to the payment of the Retirement Benefit, such benefit
                shall
                be payable in a lump sum.  The lump sum payment shall be made,
                or installment payments shall commence, no later than 60 days after
                the
                date the Participant Retires, subject to Section 10.3 (which delays
                commencement of payment of the Retirement Benefit if the Participant
                enters into a consulting arrangement with the Company following the
                Participant's Retirement).  Any payment made shall be subject to
                the Deduction Limitation.

            

    

    

    
      	
              5.3

            	
              Death
                Prior to Completion of Retirement Benefit.  If a Participant
                dies after Retirement but before the Retirement Benefit is paid in
                full,
                the Participant's unpaid Retirement Benefit payments shall continue
                and
                shall be paid to the Participant's Beneficiary (a) over the remaining
                number of months and in the same amounts as that benefit would have
                been
                paid to the Participant had the Participant survived, or (b) in a
                lump
                sum, if reques­ted by the Beneficiary and allowed in the sole
                discretion of the Committee, that is equal to the Participant's unpaid
                remaining Account Balance.

            

    

     

    ARTICLE
      6

    Pre-Retirement
      Survivor Benefit

    

    
      	
              6.1

            	
              Pre-Retirement
                Survivor Benefit.  Subject to the Deduction Limitation, the
                Participant's Beneficiary shall receive a Pre-Retirement Survivor
                Benefit
                equal to the Participant's Account Balance if the Participant dies
                before
                he or she Retires, experiences a Termination of Employment or suffers
                a
                Disability.

            

    

    

    
      	
              6.2

            	
              Payment
                of Pre-Retirement Survivor Benefit.  The Pre-Retirement
                Survivor Benefit shall be paid in the same manner and at the same
                time as
                specified in the election made by the Participant pursuant to Section
                5.2.

            

    

     

    ARTICLE
      7

    Termination
      Benefit

    

    
      	
              7.1

            	
              Termination
                Benefit.  Subject to the Deduction Limitation, the
                Participant shall receive a Termination Benefit, which shall be equal
                to
                the Participant's Account Balance (i.e., determined based on Vested
                Company Matching Contributions and Vested Company Restoration
                Contributions) if a Participant experiences a Termination of Employment
                prior to his or her Retirement, death or
                Disability.

            

    

    

    
      	
              7.2

            	
              Payment
                of Termination Benefit.  The Termination Benefit shall be
                paid in a lump sum within 60 days of the Termination of Employment,
                subject to Section 10.3.  Notwithstanding the foregoing, a
                Participant may elect either (i) upon his election to participate
                in the
                Plan or (ii) at any time at least one year prior to Termination of
                Employment to receive the Termination Benefit in three, five, or
                ten
                annual installments.  In such case, the Termination Benefit
                shall be paid in the applicable number of installments, commencing
                no
                later than 60 days after the Participant's Termination of Employment,
                subject to Section 10.3 (which delays commencement of payment of
                the
                Termination Benefit if the Participant enters into a consulting
                arrangement with the Company following the Participant's Termination
                of
                Employment).  Any payment made shall be subject to the Deduction
                Limitation.  The Participant may annually change his or her
                election to an allowable alternative payout period by submitting
                a new
                Election Form to the Committee, provided that any such Election Form
                is
                submitted at least one year prior to the Participant's Termination
                of
                Employment and is accepted by the Committee in its sole
                discretion.

            

    

     

    ARTICLE
      8

    Disability
      Waiver and Benefit

    

    
      	
              8.1

            	
              Disability
                Waiver.

            

    

    

    
      	
               

            	
              (a)

            	
              Waiver
                of Deferral.  A Participant who is determined by the
                Committee to be suffering from a Disability shall be excused from
                fulfilling that portion of the Annual Deferral Amount commitment
                that
                would otherwise have been withheld from a Participant's Base Annual
                Salary
                and/or Annual Bonus for the Plan Year during which the Participant
                first
                suffers a Disability. During the period of Disability, the Participant
                shall not be allowed to make any additional deferral elections, but
                will
                continue to be considered a Participant for all other purposes of
                this
                Plan.  Notwithstanding the foregoing, if the Disability is
                determined by the Committee to be expected to be of a short term
                duration,
                the Annual Deferral Amount shall continue to be withheld from a
                Participant's Base Annual Salary and/or Annual
                Bonus.

            

    

    

    
      	
               

            	
              (b)

            	
              Return
                to Work.  If a Participant returns to employment with an
                Employer, after a Disability ceases, the Participant may elect to
                defer an
                Annual Deferral Amount for the Plan Year following his or her return
                to
                employment or service and for every Plan Year thereafter while a
                Participant in the Plan; provided such deferral elections are otherwise
                allowed and an Election Form is delivered to and accepted by the
                Committee
                for each such election in accordance with Section 3.3
                above.

            

    

    

    
      	
              8.2

            	
              Continued
                Eligibility; Disability Benefit.  A Participant suffering a
                Disability shall, for benefit purposes under this Plan, continue
                to be
                considered to be employed, and shall be eligible for the benefits
                provided
                for in Articles 4, 5, 6 or 7 in accordance with the provisions of
                those
                Articles. Notwithstanding the above, the Committee shall have the
                right
                to, in its sole and absolute discretion and for purposes of this
                Plan
                only, and must in the case of a Participant who is otherwise eligible
                to
                Retire if either clause (i) or (ii) of this sentence applies, deem
                the
                Participant to have experienced a Termination of Employment, or in
                the
                case of a Participant who is eligible to Retire, to have Retired,
                at any
                time (or in the case of a Participant who is eligible to Retire,
                as soon
                as practicable) after such Participant (i) is determined to be permanently
                disabled under the Participant Employer's long-term disability plan
                (or
                would have been determined to be permanently disabled had he or she
                participated in that plan), or (ii), if such a plan does not exist,
                is
                determined to be permanently disabled by the Committee in its sole
                discretion, or (iii) is determined by the Committee, in its sole
                discretion, to have suffered a partial disability of such a nature
                that
                the Participant is unable to perform the material duties of his or
                her
                position.  In such a case (whether under clause (i), (ii) or
                (iii)), the Participant shall receive a Disability Benefit equal
                to his or
                her Account Balance at the time the Commit­tee's
                determination.  The Disability Benefit shall be paid in the same
                manner and at the same time as specified in the election made by
                the
                Participant pursuant to Section 5.2, unless the Committee in its
                sole
                discretion elects at any time to pay such amount or any remaining
                amount
                in a lump sum payment.  Any payment made shall be subject to the
                Deduction Limitation.  If a Participant is deemed to have a
                Termination of Employment under this Section 8.2, a subsequent event
                that
                would also constitute a Termination of Employment will be disregarded,
                and
                any resumption of full duties shall result in reinstatement to
                participation under the Plan only on such terms, as the Committee
                may then
                approve, that avoid duplication of benefits
                hereunder.

            

    

     

    ARTICLE
      9

    Beneficiary
      Designation

    

    
      	
              9.1

            	
              Beneficiary.  Each
                Participant shall have the right, at any time, to designate his or
                her
                Beneficiary(ies) (both primary as well as contingent) to receive
                any
                benefits payable under the Plan to a beneficiary upon the death of
                a
                Participant.  The Beneficiary designated under this Plan may be
                the same as or different from the Beneficiary designation under any
                other
                plan of an Employer in which the Participant
                participates.

            

    

    

    
      	
              9.2

            	
              Beneficiary
                Designation; Change; Spousal Consent.  A Participant shall
                designate his or her Beneficiary by completing and signing the Beneficiary
                Designation Form, and returning it to the Committee or its designated
                agent. A Participant shall have the right to change a Beneficiary
                by
                completing, signing and otherwise complying with the terms of the
                Beneficiary Designation Form and the Committee's rules and procedures,
                as
                in effect from time to time. If the Participant names someone other
                than
                his or her spouse as a Beneficiary for more than 50% of the Participant's
                benefits, a spousal consent, in the form designated by the Committee,
                must
                be signed by that Participant's spouse and returned to the Committee
                (subject to any procedural requirements as may be imposed by the
                Committee).  Upon the acceptance by the Committee of a new
                Beneficiary Designation Form, all Beneficiary designations previously
                filed shall be cancelled.  The Committee shall be entitled to
                rely on the last Beneficiary Designation Form filed by the Participant
                and
                accepted by the Committee prior to his or her
                death.

            

    

    

    
      	
              9.3

            	
              Acknowledgment.  No
                designation or change in designation of a Beneficiary shall be effective
                until received, accepted and acknowledged in writing by the Committee
                or
                its designated agent.

            

    

     

    
      	
              9.4

            	
              No
                Beneficiary Designation.  If a Participant fails to
                designate a Beneficiary as provided in Sections 9.1, 9.2 and 9.3
                above or,
                if all designated Beneficiaries predecease the Participant or die
                prior to
                complete distribution of the Participant's benefits, then the
                Participant's designated Beneficiary shall be deemed to be his or
                her
                surviving spouse.  If the Participant has no surviving spouse,
                the benefits remaining under the Plan to be paid to a Beneficiary
                shall be
                payable to the executor or personal representative of the Participant's
                estate.

            

    

    

    
      	
              9.5

            	
              Doubt
                as to Beneficiary.  If the Committee has any doubt as to the
                proper Beneficiary to receive payments pursuant to this Plan, the
                Committee shall have the right, exercisable in its
                discretion, to cause the Participant's Employer to withhold such
                payments
                until this matter is resolved to the Committee's
                satisfaction.

            

    

    

    
      	
              9.6

            	
              Discharge
                of Obligations.  The payment of benefits under the Plan to a
                Beneficiary shall fully and completely discharge the Company, all
                Employers and the Committee from all further obligations under this
                Plan
                with respect to the Participant, and that Participant's Plan Agreement
                shall terminate upon such full payment of
                benefits.

            

    

    

    

    ARTICLE
      10

    Leave
      of
      Absence; Consulting

    

    
      	
              10.1

            	
              Paid
                Leave of Absence.  If a Participant is authorized by the
                Participant's Employer for any reason to take a paid leave of absence
                from
                the employment of the Employer, the Participant shall continue to
                be
                considered employed by the Employer and the Annual Deferral Amount
                shall
                continue to be withheld during such paid leave of absence in accordance
                with Section 3.3.

            

    

    

    
      	
              10.2

            	
              Unpaid
                Leave of Absence.  If a Participant is authorized by the
                Participant's Employer for any reason to take an unpaid leave of
                absence
                from the employment of the Employer, the Participant shall continue
                to be
                considered employed by the Employer and the Participant shall be
                excused
                from making deferrals until the earlier of the date the leave of
                absence
                expires or the Participant returns to a paid employment
                status.  Upon such expiration or return, deferrals shall resume
                for the remaining portion of the Plan Year in which the expiration
                or
                return occurs, based on the deferral election, if any, made for that
                Plan
                Year.  If no election was made for that Plan Year, no deferral
                shall be withheld.

            

    

    

    
      	
              10.3

            	
              Consulting
                Arrangements.  Other provisions of the Plan
                notwithstand­ing, if the Company enters into a consulting arrangement
                with a Participant effective upon the Participant's Retirement or
                Termination of Employment, the payment of the Retirement Benefit
                or
                Termination Benefit shall be delayed.   In this case, the
                Participant will be treated as though employment continued until
                the
                consulting arrangement terminates for purposes of determining the
                time at
                which payment of the Retirement Benefit or Termination Benefit will
                commence.  This provision will not limit the Participant's
                withdrawal rights under Section 4.3 or 4.4 during the pendency of
                the
                consulting arrangement, but the Participant will not be permitted
                to defer
                compensation payable in connection with such consulting arrangement
                under
                the Plan.  Any determination of whether the Participant's
                severance from employment constitutes a Retirement or Termination
                of
                Employment shall be determined based on his or her circumstances
                at the
                time employment terminates, without regard to any continued service
                pursuant to the consulting
                arrangement.

            

    

     

    ARTICLE
      11

    Termination,
      Amendment or Modification

    

    
      	
              11.1

            	
              Termination.  Each
                Employer reserves the right to terminate the Plan at any time with
                respect
                to any or all of its Participants by the actions of its board of
                directors.  Upon the termination of the Plan with respect to any
                Employer, the Plan Agreements of the affected Participants who are
                employed by that Employer shall terminate and their Account Balance,
                determined as if they had experienced a Termination of Employment
                on the
                date of Plan termination or, if Plan termination occurs after the
                date
                upon which a Participant was eligible to Retire, then with respect
                to that
                Participant as if he or she had Retired on the date of Plan termination,
                shall be paid to the Participants as follows: Prior to a Change in
                Control, if the Plan is terminated with respect to all of its
                Participants, an Employer shall have the right, in its sole discretion,
                and notwithstanding any elections made by the Participant, to pay
                such
                benefits in a lump sum promptly after termination or pursuant to
                a Monthly
                Installment Method of up to 15 years, with amounts credited and debited
                during the installment period as provided herein, except that, if
                the Plan
                is terminated with respect to less than all of its Participants,
                an
                Employer shall be required to pay such benefits in a lump sum promptly
                after termination.  After a Change in Control, the Employer
                shall be required to pay such benefits in a lump sum except that,
                if a
                Participant has elected, upon his election to participate in the
                Plan or
                at least one year prior to such termination of the Plan, to receive
                the
                benefits in three, five, or ten annual installments under Section
                7.2, the
                Employer shall pay such benefits in the applicable number of annual
                installments commencing promptly after such termination.  The
                termination of the Plan shall not adversely affect any Participant
                or
                Beneficiary who has become entitled to the payment of any benefits
                under
                the Plan prior to such termination; provided however, that the Employer
                shall have the right to accelerate installment payments by paying
                the
                Account Balance in a lump sum or pursuant to a Monthly Installment
                Method
                using fewer months (except following a Change in Control in the case
                of
                Participant who has elected under Section 7.2 to receive the benefits
                in a
                three, five or ten annual
                installments).

            

    

    

    
      	
              11.2

            	
              Amendment.  Any
                Employer may, at any time, amend or modify the Plan in whole or in
                part
                with respect to that Employer by the actions of its board of directors,
                or, in the case of the Company, by the actions of the Committee,
                provided
                that any Committee-approved amendment or modification that would
                materially increase the Company’s expense or the benefits to Participants
                with respect to the Plan or that would be subject to approval of
                shareholders of the Company must be ratified by the Company’s Board of
                Directors.  The foregoing not withstanding, (i) no amendment or
                modification shall be effective to decrease or restrict the value
                of a
                Participant's Account Balance in existence at the time the amendment
                or
                modification is made, calculated as if the Participant had experienced
                a
                Termination of Employment as of the effective date of the amendment
                or
                modification, or, if the amendment or modification occurs after the
                date
                upon which the Participant was eligible to Retire, the Participant
                had
                Retired as of the effective date of the amendment or modification;
                and
                (ii) the amendment or modification of the Plan shall not affect any
                Participant or Beneficiary who has become entitled to the payment
                of
                benefits under the Plan as of the date of the amendment or modification;
                provided, however, that the Employer shall have the right to accelerate
                installment payments by paying the Account Balance in a lump sum
                or
                pursuant to a Monthly Installment Method using fewer
                months.

            

    

     

    
      	
              11.3

            	
              Plan
                Agreement.  Despite the provisions of Sections 11.1 and 11.2
                above, if a Participant's Plan Agreement contains benefits or limitations
                that are not in this Plan document, the Employer may only amend or
                terminate such provisions with the consent of the
                Participant.

            

    

    

    
      	
              11.4

            	
              Effect
                of Payment.  The full payment of the applicable benefit
                under Section 4.4 or Articles 5, 6, 7 or 8 of the Plan shall completely
                discharge all obligations to a Participant and his or her designated
                Beneficiaries under this Plan and the Participant's Plan Agreement
                shall
                terminate.

            

    

    

    

    ARTICLE
      12

    Administration

    

    
      	
              12.1

            	
              Committee
                Duties.  This Plan shall be administered by a Committee
                which shall consist of the Board, or such committee as the Board
                shall
                appoint.  Members of the Committee may be Participants under
                this Plan.  The Committee shall also have the discretion and
                authority to (i) make, amend, interpret, and enforce all appropriate
                rules
                and regulations for the administration of this Plan and (ii) decide
                or
                resolve any and all questions including interpretations of this Plan,
                as
                may arise in connection with the Plan.  The Committee may, in
                its sole discretion, waive or modify the length of the advance-election
                period a Participant is required to make an election as to the manner
                and
                timing of payment of Retirement or Termination Benefits under Sections
                5.2
                or 7.2 or in connection with the termination of the Plan under Section
                11.1.

            

    

    

    
      	
              12.2

            	
              Agents.  In
                the administration of this Plan, the Committee may, from time to
                time,
                employ agents and delegate to them such administrative duties as
                it sees
                fit (including acting through a duly appointed representative) and
                may
                from time to time consult with counsel who may be counsel to any
                Employer.

            

    

    

    
      	
              12.3

            	
              Binding
                Effect of Decisions.  The decision or action of the
                Committee with respect to any question arising out of or in connection
                with the administration, interpretation and application of the Plan
                and
                the rules and regulations promulgated hereunder shall be final and
                conclusive and binding upon all persons having any interest in the
                Plan.

            

    

    

    
      	
              12.4

            	
              Indemnity
                of Committee.  All Employers shall indemnify and hold
                harmless the members of the Committee against any and all claims,
                losses,
                damages, expenses or liabilities arising from any action or failure
                to act
                with respect to this Plan, except in the case of willful misconduct
                by the
                Committee or any of its members.

            

    

    

    
      	
              12.5

            	
              Employer
                Information.  To enable the Committee to perform its
                functions, each Employer shall supply full and timely information
                to the
                Committee on all matters relating to the compensation of its Participants,
                the date and circumstances of the Retirement, Disability, death or
                Termination of Employment of its Participants, and such other pertinent
                information as the Committee may reasonably
                require.

            

    

    
      
        
        

      

      
        
          

        

      

       

    

    ARTICLE
      13

    Other
      Benefits and Agreements

    

    
      	
              13.1

            	
              Coordination
                with Other Benefits.  The benefits provided for a
                Participant and Participant's Beneficiary under the Plan are in addition
                to any other benefits available to such Participant under any other
                plan
                or program for employees of the Participant's Employer.  The
                Plan shall supplement and shall not supersede, modify or amend any
                other
                such plan or program except as may otherwise be expressly
                provided.

            

    

     

    ARTICLE
      14

    Claims
      Procedures

    

    
      	
              14.1

            	
              Presentation
                of Claim.  Any Participant or Beneficiary of a deceased
                Participant (such Participant or Beneficiary being referred to below
                as a
                "Claimant") may deliver to the Committee a written claim for a
                determination with respect to the amounts distributable to such Claimant
                from the Plan.  If such a claim relates to the contents of a
                notice received by the Claimant, the claim must be made within 60
                days
                after such notice was received by the Claimant. All other claims
                must be
                made within 180 days of the date on which the event that caused the
                claim
                to arise occurred.  The claim must state with particularity the
                determination desired by the
                Claimant.

            

    

    

    
      	
              14.2

            	
              Notification
                of Decision.  The Committee shall consider a Claimant's
                claim within a reasonable time, and shall notify the Claimant in
                writing:

            

    

    

    
      	
               

            	
              (a)

            	
              that
                the Claimant's requested determination has been made, and that the
                claim
                has been allowed in full; or

            

    

    

    
      	
               

            	
              (b)

            	
              that
                the Committee has reached a conclusion contrary, in whole or in part,
                to
                the Claimant's requested determination, and such notice must set
                forth in
                a manner calculated to be understood by the
                Claimant:

            

    

    

    
      	
               

            	
              (i)

            	
              the
                specific reason(s) for the denial of the claim, or any part of
                it;

            

    

    

    
      	
               

            	
              (ii)

            	
              specific
                reference(s) to pertinent provisions of the Plan upon which such
                denial
                was based;

            

    

    

    
      	
               

            	
              (iii)

            	
              a
                description of any additional material or information necessary for
                the
                Claimant to perfect the claim, and an explanation of why such material
                or
                information
                is necessary; and (iv) an explanation of the claim review procedure
                set
                forth in Section 14.3 below.

            

    

    

    
      	
              14.3

            	
              Review
                of a Denied Claim.  Within 60 days after receiving a notice
                from the Committee that a claim has been denied, in whole or in part,
                a
                Claimant (or the Claimant's duly authorized representative) may file
                with
                the Committee a written request for a review of the denial of the
                claim.  Thereafter, but not later than 30 days after the review
                procedure began, the Claimant (or the Claimant's duly authorized
                representative):

            

    

    

    
      	
               

            	
              (a)

            	
              may
                review pertinent documents;

            

    

    

    
      	
               

            	
              (b)

            	
              may
                submit written comments or other documents;
                and/or

            

    

    

    
      	
               

            	
              (c)

            	
              may
                request a hearing, which the Committee, in its sole discretion, may
                grant.

            

    

    

    
      	
              14.4

            	
              Decision
                on Review.  The Committee shall render its decision on
                review promptly, and not later than 60 days after the filing of a
                written
                request for review of the denial, unless a hearing is held or other
                special circumstances require additional time, in which case the
                Committee's decision must be rendered within 120 days after such
                date.  Such decision must be written in a manner calculated to
                be understood by the Claimant, and it must
                contain:

            

    

    

    
      	
               

            	
              (a)

            	
              specific
                reasons for the decision;

            

    

    

    
      	
               

            	
              (b)

            	
              specific
                reference(s) to the pertinent Plan provisions upon which the decision
                was
                based; and

            

    

    

    
      	
               

            	
              (c)

            	
              such
                other matters as the Committee deems
                relevant.

            

    

    

    
      	
              14.5

            	
              Legal
                Action.  A Claimant's compliance with the foregoing
                provisions of this Article 14 is a mandatory prerequisite to a Claimant's
                right to commence any legal action with respect to any claim for
                benefits
                under this Plan.

            

    

    

    

    ARTICLE
      15

    Trust

    

    
      	
              15.1

            	
              Establishment
                of the Trust.  The Company shall establish the Trust, and
                each Employer shall at least annually transfer over to the Trust
                such
                assets as the Employer determines are necessary to provide, on a
                present
                value basis, for its future liabilities created with respect to all
                Annual
                Deferral Amounts, Company Matching Amounts and Company Restoration
                Amounts
                for such Employer's Participants for all periods prior to the transfer,
                as
                well as the credits and debits to the Participants' Account Balance
                (and
                Unvested Accrued Amounts) for all periods prior to the transfer,
                taking
                into consideration the value of the assets in the trust at the time
                of the
                transfer.

            

    

     

    
      	
              15.2

            	
              Interrelationship
                of the Plan and the Trust.  The provisions of the Plan and
                the Plan Agreement shall govern the rights of a Participant to receive
                distributions pursuant to the Plan. The provisions of the Trust shall
                govern the rights of the Employers, Participants and the creditors
                of the
                Employers to the assets transferred to the Trust. Each Employer shall
                at
                all times remain liable to carry out its obligations under the
                Plan.

            

    

    

    
      	
              15.3

            	
              Distributions
                From the Trust.  Each Employer's obligations under the Plan
                may be satisfied with Trust assets distributed pursuant to the terms
                of
                the Trust, and any such distribution shall reduce the Employer's
                obligations under this Plan.

            

    

    

    

    ARTICLE
      16

    Miscellaneous

    

    
      	
              16.1

            	
              Unsecured
                General Creditor.  Participants and their Beneficiaries,
                heirs, successors and assigns shall have no legal or equitable rights,
                interests or claims in any property or assets of an
                Employer.  For purposes of the payment of benefits under this
                Plan, any and all of an Employer's assets shall be, and remain, the
                general, unpledged unrestricted assets of the Employer.  An
                Employer's obligation under the Plan shall be merely that of an unfunded
                and unsecured promise to pay money in the future.  If any right
                of a Participant under the Plan would cause such Participant to be
                in
                constructive receipt or have the economic benefit of any funds or
                other
                assets such that the Participant would be subject to federal income
                taxation in respect of such funds or other assets prior to the
                Participant's actual receipt thereof as a Termination or Retirement
                Benefit or other payout of benefits under the Plan, such right of
                the
                Participant shall be restricted to the extent necessary so that the
                Participant does not have such constructive receipt or economic
                benefit.

            

    

    

    
      	
              16.2

            	
              Employer's
                Liability.  An Employer's liability for the payment of
                benefits shall be defined only by the Plan and the Plan Agreement,
                as
                entered into between the Employer and a Participant.  An
                Employer shall have no obligation to a Participant under the Plan
                except
                as expressly provided in the Plan and his or her Plan
                Agreement.

            

    

    

    
      	
              16.3

            	
              Nonassignability.  Neither
                a Participant nor any other person shall have any right to commute,
                sell,
                assign, transfer, pledge, anticipate, mortgage or otherwise encumber,
                transfer, hypothecate, alienate or convey in advance of actual receipt,
                the amounts, if any, payable hereunder, or any part thereof, which
                are,
                and all rights to which are expressly declared to be, unassignable
                and
                non-transferable, except that the foregoing shall not apply to any
                family
                support obligations set forth in a court order.  No part of the
                amounts payable shall, prior to actual payment, be subject to seizure,
                attachment, garnishment or sequestration for the payment of any debts,
                judgments, alimony or separate maintenance owed by a Participant
                or any
                other person, nor be transferable by operation of law in the event
                of a
                Participant's or any other person's bankruptcy or
                insolvency.

            

    

    
      	
              16.4

            	
              Not
                a Contract of Employment.  The terms and conditions of this
                Plan shall not be deemed to constitute a contract of employment between
                the Company or any Employer and the Participant.  Such
                employment is hereby acknowledged to be an "at will" employment
                relationship that can be terminated at any time for any reason, or
                no
                reason, with or without cause, and with or without notice, unless
                expressly provided in a written employment agreement. Nothing in
                this Plan
                shall be deemed to give a Participant the right to be retained in
                the
                service of the Company or any Employer or to interfere with the right
                of
                the Company or any Employer to discipline or discharge the Participant
                at
                any time.

            

    

    

    
      	
              16.5

            	
              Furnishing
                Information.  A Participant or his or her Beneficiary will
                cooperate with the Committee by furnishing any and all information
                requested by the Committee and take such other actions as may be
                requested
                in order to facilitate the administration of the Plan and the payments
                of
                benefits hereunder, including but not limited to taking such physical
                examinations as the Committee may deem
                necessary.

            

    

    

    
      	
              16.6

            	
              Terms.  Whenever
                any words are used herein in the masculine, they shall be construed
                as
                though they were in the feminine in all cases where they would so
                apply;
                and whenever any words are used herein in the singular or in the
                plural,
                they shall be construed as though they were used in the plural or
                the
                singular, as the case may be, in all cases where they would so
                apply.

            

    

    

    
      	
              16.7

            	
              Captions.  The
                captions of the articles, sections and paragraphs of this Plan are
                for
                convenience only and shall not control or affect the meaning or
                construction of any of its
                provisions.

            

    

    

    
      	
              16.8

            	
              Governing
                Law.  Subject to ERISA, the provisions of this Plan shall be
                construed and interpreted according to the internal laws of the State
                of
                Nevada without regard to its conflicts of laws
                principles.

            

    

    

    
      	
              16.9

            	
              Notice.  Any
                notice or filing required or permitted to be given to the Committee
                under
                this Plan shall be sufficient if in writing and hand-delivered, or
                sent by
                registered or certified mail, to the address
                below:

            

    

    

    Sierra
      Health Services Deferred

    Compensation
      Plan Committee

    P.O.
      Box
      15645

    Las
      Vegas, Nevada 89114-5645

    

    Such
      notice shall be deemed given as of the date of delivery or, if delivery is
      made
      by mail, as of the date shown on the postmark on the receipt for registration
      or
      certification.

    

    Any
      notice or filing required or permitted to be given to a Participant under this
      Plan shall be sufficient if in writing and hand-delivered, or sent by mail,
      to
      the last known address of the Participant.

    
      	
              16.10

            	
              Successors.  The
                provisions of this Plan shall bind and inure to the benefit of the
                Participant's Employer and its successors and assigns and the Participant
                and the Participant's designated
                Beneficiaries.

            

    

    

    
      	
              16.11

            	
              Spouse's
                Interest.  The interest in the benefits hereunder of a
                spouse of a Participant who has predeceased the Participant shall
                automatically pass to the Participant and shall not be transferable
                by
                such spouse in any manner, including but not limited to such spouse's
                will, nor shall such interest pass under the laws of intestate
                succession.

            

    

    

    
      	
              16.12

            	
              Validity.  In
                case any provision of this Plan shall be illegal or invalid for any
                reason, said illegality or invalidly shall not affect the remaining
                parts
                hereof, but this Plan shall be construed and enforced as if such
                illegal
                or invalid provision had never been inserted
                herein.

            

    

    

    
      	
              16.13

            	
              Incompetent.
                If the Committee determines in its discretion that a benefit under
                this
                Plan is to be paid to a minor, a person declared incompetent or to
                a
                person incapable of handling the disposition of that person's property,
                the Committee may direct payment of such benefit to the guardian,
                legal
                representative or person having the care and custody of such minor,
                incompetent or incapable person.  The Committee may require
                proof of minority, incompetency, incapacity or guardianship, as it
                may
                deem appropriate prior to distribution of the benefit.  Any
                payment of a benefit shall be a payment for the account of the Participant
                and the Participant's Beneficiary, as the case may be, and shall
                be a
                complete discharge of any liability under the Plan for such payment
                amount.

            

    

    

    
      	
              16.14

            	
              Court
                Order.  The Committee is authorized to make any payments
                directed by court order in any action in which the Plan or the Committee
                has been named as a party.  In addition, if a court determines
                that a spouse or former spouse of a Participant has an interest in
                the
                Plan as the result of a property settlement or otherwise, the Committee,
                in its sole discretion, shall have the right, notwithstanding any
                election
                made by a Participant and notwithstanding the provisions of Section
                16.3,
                to take actions it deems necessary or appropriate in order to comply
                with
                the order of the court.  In such case, unless otherwise
                determined by the Committee, the following rules will
                apply:

            

    

    

    
      	
               

            	
              (a)

            	
              If
                the court's order directs immediate payment to or for the benefit
                of the
                spouse or former spouse (or a dependent family member), the Participant's
                Deferral Account or portion thereof subject to such order shall be
                valued
                as of the date of the court order and paid out in accordance therewith
                as
                a lump sum within 60 days
                thereafter.

            

    

     

    
      
        

      

    

     

    
      	
               

            	
              (b)

            	
              If
                the court's order directs payment to or for the benefit of the spouse
                or
                former spouse (or a dependent family member) at a future date, the
                Participant's Deferral Account shall be segregated, as of the date
                of the
                court order, into two subaccounts, one representing the portion subject
                to
                the court's order for payment to the spouse or former spouse (the
                "Court
                Order Subaccount") and the other representing the portion that is
                not or
                will not thereafter be required to be paid to such
                spouse or former spouse (the "Non-Court Order
                Subaccount").   Both of these Subaccounts shall be
                maintained in the name of the Participant.  The Court Order
                Subaccount shall be reallocated, as of the date of the court order,
                to the
                Measurement Fund that is a money market or other cash equivalent
                fund, and
                shall remain in such Measurement Fund without reallocation until
                such
                Subaccount is paid out.  The Court Order Subaccount shall be
                paid, to or for the benefit of the spouse or former spouse (or dependent
                family member) or otherwise in accordance with the court order, at
                the
                earlier of the time specified in the court order or the time that
                portion
                of the Deferral Account otherwise would have been paid under the
                Plan;
                provided, however, that if an event occurs that triggers a payout
                or
                benefit under Article 4, 5, 6, 7 or 8, the Court Order Subaccount
                shall be
                paid in accordance with the such applicable Article, and provided
                further,
                that the Court Order Subaccount shall remain subject to any vesting
                and
                other restrictions under the Plan.  The Non-Court Order
                Subaccount shall remain subject to the terms and conditions of the
                Plan
                without limitation.

            

    

    

    
      	
               

            	
              (c)

            	
              The
                Committee shall send written notice to the Participant explain the
                actions
                and rights under this Section 16.14 with respect to the Participant's
                Deferral Account, including (i) the reallocation of the Court Order
                Subaccount to the money market or cash equivalent Measurement Fund,
                (ii)
                the federal income tax consequence to the Participant upon payment
                of the
                Court Order Subaccount, and (iii) any aspect of the court order with
                which
                the Company cannot comply.

            

    

    

    
      	
              16.15

            	
              Distribution
                in the Event of Taxation.

            

    

    

    
      	
               

            	
              (a)

            	
              In
                General.  If, for any reason, all or any portion of a
                Participant's benefit under this Plan becomes taxable to the Participant
                prior to receipt, a Participant may petition the Committee before
                a Change
                in Control, or the trustee of the Trust after a Change in Control,
                for a
                distribution of that portion of his or her benefit that has become
                taxable.  Upon the grant of such a petition, which grant shall
                not be unreasonably withheld (and, after a Change in Control, shall
                be
                granted), a Participant's Employer shall distribute to the Participant
                immediately available funds in an amount equal to the taxable portion
                of
                his or her benefit (which amount shall not exceed a Participant's
                Account
                Balance under the Plan).  If the petition is granted, the tax
                liability distribution shall be made within 90 days of the date when
                the
                Participant's petition is granted.  Such a distribution shall
                affect and reduce the benefits to be paid under this
                Plan.

            

    

    

    
      	
               

            	
              (b)

            	
              Trust.  If
                the Trust terminates in accordance with Section 3.7(e) of the Trust
                and
                benefits are distributed from the Trust to a Participant in accordance
                with that Section, the Participant's benefits under this Plan shall
                be
                reduced to the extent of such
                distributions.

            

    

     

    
      	
              16.16

            	
              Legal
                Fees To Enforce Rights After Change in Control.  The Company
                and each Employer is aware that upon the occurrence of a Change in
                Control, the Board or the board of directors of the Employer (which
                might
                then be composed of new members) or a shareholder of the Company
                or the
                Employer, or of any successor corporation might then cause or attempt
                to
                cause the Company, the Employer or such successor to refuse to comply
                with
                its obligations under the Plan and might cause or attempt to cause
                the
                Company or the Employer to institute, or may institute, litigation
                seeking
                to deny Participants the benefits intended under the Plan. In these
                circumstances, the purpose of the Plan could be
                frustrated.  Accordingly, if, following a Change in Control, it
                should appear to any Participant that the Company, its Employer or
                any
                successor corporation has failed to comply with any of its obligations
                under the Plan or any agreement thereunder or, if the Company, such
                Employer or any other person takes any action to declare the Plan
                void or
                unenforceable or institutes any litigation or other legal action
                designed
                to deny, diminish or to recover from any Participant the benefits
                intended
                to be provided, then the Company and the Employer irrevocably authorize
                such Participant to retain counsel of his or her choice at the expense
                of
                the Company and the Employer (who shall be jointly and severally
                liable)
                to represent such Participant in connection with the initiation or
                defense
                of any litigation or other legal action, whether by or against the
                Company, the Employer or any director, officer, shareholder or other
                person affiliated with the Company, the Employer or any successor
                thereto
                in any jurisdiction.

            

    

     

    
      
        

      

    

     

     

     

    
 

    IN
      WITNESS WHEREOF, the Company has signed this amended and restated Plan document
      as of April 27, 2007.

    

    

    
      	
              SIERRA
                HEALTH SERVICES, INC.,

            
	
               a  Nevada
                corporation

               

            
	 	 
	
              By:

            	
               /s/
                Jonathon Bunker

            
	 	 
	
              Title:

            	
               President
                and Chief Operating Officer

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