Employment Agreement


EXHIBIT 10.9 
October 15, 2002 
 
Lori S. Richardson Pellicioni 
9040 Alto Cedro Drive 
Beverly Hills, CA 90210 
 
Dear Lori: 
 
On behalf of DaVita
Inc., I am pleased to finalize the terms of your new position as Vice President, Compliance and Chief Compliance Officer. In this new role, you will report to the DaVita Board of Directors, Joe Mello and me. Your start date has yet to be determined.
The following represents the terms and conditions in this regard: 
 
As we discussed, your base salary for this position has been set at $210,000.00 per annum, less standard deductions and authorized withholdings. Your base salary will be reviewed each year during DaVita’s annual salary
review. DaVita, in its sole discretion, may increase the base salary as a result of any such review. In addition, you will be eligible to receive an annual performance bonus between zero and $135,000, which will be prorated the first year and is
payable in a manner consistent with our practices and procedures. Your position is exempt under the wage and hour laws. You will be paid bi-weekly pursuant to our normal payroll practices. Your status will be that of a regular full-time benefit
eligible employee. 
 
You and your family shall be
eligible for participation in and receive all benefits under DaVita’s health and welfare benefit plans under the same terms and conditions applicable to DaVita executives at similar levels of compensation and responsibility. A summary of those
benefits will be presented to you at the start of your employment. 
 
The Board of Directors has approved that you receive a grant of stock options to purchase 80,000 shares of DaVita stock. Such options will have a five-year term and will vest over a four-year period, one-quarter vesting on
each anniversary of the grant. The exercise price will be the closing price on the New York Stock Exchange on the start date of your employment. The options will be reflected in a separate Stock Option Agreement. DaVita is currently in the process
of developing an Executive Equity Ownership requirement. Specific details will be communicated when completed. In the meantime, should you have any questions, you can feel free to contact either Rich Whitney, CFO, or myself. 
 
The Company will provide you with a separate indemnification
agreement. Our indemnification agreement is currently being reviewed by outside counsel to ensure that it is consistent with the newly enacted federal laws; once that review is completed, we will send the indemnity agreement to you. DaVita also
agrees to reimburse you in accordance with its travel and entertainment policies, as well as other business-related expenses, incurred in the performance of your duties. Based upon your estimated travel schedule, DaVita agrees to allow you to
purchase coach seats as per our normal travel policy. For trips in excess of three (3) hours, DaVita will reimburse you for upgrades to Business Class. This is subject to change at DaVita’s discretion. 
 
Our offer of employment is conditioned upon your successful
completion of a pre-employment drug test, which must be successfully completed before you can start your employment. Please contact Moira Ireland at 310/750-2232 to arrange for a pre-employment drug test, which must be completed before you can start
your employment. 
 
This Agreement, separate Stock
Option Agreement, Non-Compete/Confidentiality/Non-Solicitation Agreement and provisions relating to termination of employment represent the entire understanding of the parties hereto with respect to your employment and supercedes all prior
agreements with respect thereto. This Agreement may not be altered or amended except in writing executed by both parties hereto. 






 

	  October 15, 2002
	  	  
	  Lori S. Richardson Pellicioni
	  	  Page 2


 
This
Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together constitute one and the same instrument. Photographic or facsimile copies of such signed counterparts may be used in lieu of
the originals for any purpose. 
 
In the event that
any provision of the Agreement is determined to be illegal, invalid or void for any reason, the remaining provisions hereof shall continue in full force and effect. 
 
If the above terms of employment are acceptable to you, please sign below and return this Agreement to me as
soon as possible. In addition, please read and sign the attached Non-Compete/Confidentiality/Non-Solicitation Agreement. 
 
Sincerely, 
 
Kent Thiry 
Chief Executive Officer 
DaVita Inc. 
 
I accept the position of Vice President, Compliance and Chief Compliance Officer under the terms and conditions outlined above.

 

	  	  	  	  	  
	
	  	  	  	  	  	  	  
	
	  	  	  	  	

	  Lori S. Richardson Pellicioni
	  	  	  	  	  	  Date


 
cc: Joe Mello

Chief Operating Officer 
 
Robert D. Armstrong 
Vice President, People Services