Document:

Form of Stock Option Agreement

 EXHIBIT 10.3 
  
 Non-Qualified Stock Option Agreement under 
 the DaVita Inc. 2002 Equity Compensation Plan - Employee 
  

			
	Primary Terms	  	 
		
	Optionee:	  	 
		
	SSN:	  	 
		
	Address:	  	 
		
	Grant Date:	  	 
		
	Options Granted:	  	 
		
	Option Price per Share:	  	 $

		
	Expiration Date:	  	 
		
	Plan Name:	  	 2002 Equity Compensation Plan

		
	Plan ID#:	  	 
		
	Vesting Schedule:	  	 

  
 The terms set forth above, together
with the terms and conditions attached, constitute one agreement. 
  
 Note:
Please mark and initial any correction to the Name, SSN and/or Address shown on this page before returning a signed copy of this stock option agreement to the Stock Plan Administrator. 

 This Non-Qualified Stock Option Agreement is dated
as                 of (“Grant Date”) by and between DaVita Inc., a Delaware corporation (“Company”) and
                 (“Optionee”) pursuant to the Company’s 2002 Equity Compensation Plan (“Plan”). Capitalized terms that are used
but not defined in this document shall have the meanings set forth in the Plan. 
  
 1. Grant of Option. 
  
 (a) The Company hereby grants to the Optionee the right (“Option”) to purchase all or any portion of             shares (“Shares”)
of the common stock of the Company (“Common Stock”) at a purchase price of $              per share (“Option Price”). 
  

	 	(b)	It is intended that this Option will not qualify for treatment as an incentive stock option under Internal Revenue Code (“Code”) Section 422. 

  
 2. Term of Option. 
  

	 	(a)	This Option shall be effective for the period (“Term”) from the Grant Date shown above through December 1, 2005 (“Expiration Date”). 

  

	 	(b)	In the case of the termination of the Optionee’s employment with the Company (“Severance”), the following rules shall apply in determining the date on which the
Option shall terminate. 

  

	 	(i)	If the Optionee dies while employed by the Company or during the three (3) month period immediately subsequent to his or her Severance, the Option shall terminate one (1) year from
the date of the Severance. 

  

	 	(ii)	If the Optionee was disabled (within the meaning of Section 22(e)(3) of the Code) at the time of his or her Severance, the Option shall terminate one (1) year following the
Severance. 

  

	 	(iii)	In all other cases, the Option shall terminate three (3) months following the Severance. 

  

	 	(c)	If a Participant is transferred between the Company and a subsidiary thereof, or vice versa, or between subsidiaries, Severance shall not be deemed to have occurred.

  
 3. Exerciseability. 
  
 (a) The shares subject to this Option shall become
exerciseable (“vest”) on the dates indicated under the Vesting Schedule table above such that this Option shall be fully exerciseable on the last date listed on such table; provided, however, that such vesting shall cease at the time of
Optionee’s Severance. 
  
 (b) These
installments shall be cumulative, so that this Option may be exercised as to any or all of the Shares covered by an installment at any time or times after the installment becomes vested and until this Option terminates. 
  
 (c) The foregoing notwithstanding, in the event of a
“Change of Control”, defined herein as (i) any transaction or series of transactions in which any person or group (within the meaning of Rule 13d-5 under the Exchange Act and Sections 13(d) and 14(d) under the Exchange Act) becomes the
direct or indirect “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), by way of a stock issuance, tender offer, merger, consolidation, other business combination or otherwise, of greater than 50% of the total voting
power (on a fully diluted basis as if all convertible securities had been converted and all warrants and options had been exercised) entitled to vote in the election of directors of the Company (including any transaction in which the Company becomes
a wholly-owned or majority-owned subsidiary of another corporation), or (ii) any merger or consolidation or reorganization in which the Company does not survive, or (iii) any merger or consolidation in which the Company survives, but the shares of
the Company’s Common Stock outstanding immediately prior to such merger or consolidation represent 50% or less of the 

 voting power of the Company after such merger or consolidation, or (iv) any transaction in which more
than 50% of the Company’s assets are sold, then, in any such case, this Option shall automatically vest and become immediately exerciseable in its entirety, such vesting to be effective as of the effective date of such transaction or series of
transactions; provided, however, that no transaction contemplated by clauses (i) through (iv) above shall constitute a Change of Control if both (x) the person acting as the Chief Executive Officer of the Company for the 6 months prior to such
transaction becomes the Chief Executive Officer or Executive Chairman of the Board of Directors of the entity that has acquired control of the Company as a result of such transaction (the “Acquiror”) immediately after such transaction and
remains the Chief Executive Officer or Executive Chairman of the Board of Directors for not less than one year following the transaction and (y) a majority of the Acquiror’s board of directors immediately after such transaction consist of
persons who were directors of the Company immediately prior to such transaction. 
  
 (d) The Optionee’s Severance (whether by reason of death or otherwise) shall not accelerate the number of shares with respect to
which an Option may be exercised. 
  
 4. Method of
Exercising. 
  
 This Option may be
exercised by the Optionee upon delivery of the following documents to the Company at its principal executive offices: 
  
 (a) Written notice, in the form of a completed exercise election form, specifying the number of full Shares to be purchased; 

 
 (b) Payment of the full purchase price therefor in cash,
by check, or in such other form of lawful consideration as the Committee may approve from time to time; 
  
 (c) Such agreements or undertakings that are required by the Committee pursuant to the Plan; and 
  
 (d) Payment of any taxes (including withholding taxes) which
may be required by the Committee. 
  
 5.
Assignments. 
  
 (a) This Option shall
be exerciseable only by the Optionee during the Optionee’s lifetime. 
  
 (b) The rights of the Optionee under this Option may not be assigned or transferred except by will or by the laws of descent and distribution. 
  
 6. No Rights as a Stockholder. 
  
 The Optionee shall have no rights as a stockholder of any Shares covered by this Option until the date a
certificate for such Shares has been issued to him or her following the exercise of the Option. 
  
 7. Interpretation of Option. 
  
 (a) This Option is made under the provisions of the Plan and shall be interpreted in a manner consistent with it. 
  
 (b) Any provision in this Option inconsistent with the Plan
shall be superseded and governed by the Plan. A copy of the Plan is attached hereto as Exhibit A. 
  
 (c) For all purposes under this Agreement, employment by the Company shall include employment by the Company or any subsidiary thereof.

 8. Legends on Certificates. 
  
 The Optionee acknowledges that the certificates representing the Shares issued upon exercise of this Option may bear such
legends and be subject to such restrictions on transfer as the Company may deem necessary to comply with all applicable state and federal securities laws and regulations. 
  
 9. Amendments. 
  
 This Option may be amended at any time with the consent of the Company and the Optionee. 
  
 10. Non-Competition/Non-Solicitation/Non-Disclosure. 
  
 (a) The Optionee acknowledges and recognizes the highly competitive nature of the business of the Company and accordingly
agrees that while Optionee is an employee of the Company and for the one-year period following termination of such relationship, the Optionee will not (i) engage in or become an employee, director, principal or shareholder of, consultant to or
equity participant in, any person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise other than the Company that engages in activities that are in competition with the Company in the
United States (the “Territory”); (ii) (x) directly or indirectly induce any employee of the Company, its affiliates or its subsidiaries or any physician with privileges at a dialysis facility owned by the Company, its affiliates or its
subsidiaries to (A) engage in any activity that Optionee has agreed to refrain from pursuant to (i) above or (B) terminate his or her relationship with the Company or any of its affiliates or subsidiaries or (y) directly or indirectly employ, or
offer employment to or other similar arrangement with, any person who is or was during the period of the Optionee’s employment or consulting or advisory relationship with the Company, or was beforehand, employed or engaged by the Company, its
affiliates or subsidiaries, including but not limited to a medical director of a dialysis facility owned or operated by the Company, its subsidiaries or affiliates, or a physician with admitting privileges at a dialysis facility owned, operated or
managed by Company, or one of its affiliates or subsidiaries, or (iii) take any action that results, or might reasonably result in any of the foregoing. 
  
 (b) In addition, Optionee agrees not to disclose or use for his or her own benefit or purposes or for the benefit or purposes of any person, firm,
partnership, joint venture, association, corporation or other business organization, entity or enterprise other than the Company and any of its subsidiaries or affiliates, any trade secrets, information, data, or other confidential information
relating to customers, development, programs, costs, marketing, trading, investment, sales activities, promotion, credit and financial data, financing methods, plans, or the business and affairs of the Company (“Information”); provided,
however, the foregoing shall not apply to (i) Information which is not unique to the Company, or (ii) Information which is generally known to the industry or the public other than as a result of the Optionee’s breach of his covenant, or (iii)
disclosure that is required by any applicable law, rule or regulation. If Optionee receives such a request to produce Information in his or her possession, Optionee shall provide Company reasonable advance notice, in writing, prior to producing said
Information, so as to give Company reasonable time to object to Optionee producing said Information. 
  
 (c) If, at any time within (a) the Term of this Option, or (b) one (1) year after termination of employment for any reason, whichever is the latest,
Optionee (i) breaches the non-competition provision of Section 10(a), (ii) breaches the non-solicitation provision of Section 10(a), (iii) breaches the non-disclosure provision of Section 10(b), (iv) is convicted of a felony, (v) has been
adjudicated by a court of competent jurisdiction of having committed an act of fraud or dishonesty resulting or intending to result directly or indirectly in personal enrichment at the expense of the Company, or (vi) is excluded from participating
in any federal health care program, then (1) this Option shall terminate effective on the date on which Optionee enters into such activity and (2) any gain realized by Optionee from exercising all or a portion of this Option shall be paid by
Optionee to the Company. 

 This agreement may be considered null and void at the discretion of the Company if a signed copy is not returned to the
Stock Plan Administrator within 90 days of the Grant Date above. 
  
 In Witness
Whereof, the Company and the Optionee have executed this Option as of the date first written above. 
  

					
	 Optionee
	  	 Leadership
 (Executive, V.P, etc.)
	 	 Company

			
	
	  	
	 	

	 Printed Name
	  	 Printed Name
	 	 Printed Name

			
	
	  	
	 	

	 Signature
	  	 Signature
	 	 Signature

			
	
	  	
	 	 VP, Secretary & General Counsel

	 Title
	  	 Title
	 	 Title

			
	
	  	
	 	 Legal

	 Division/Department
	  	 Division/Department
	 	 Division/DepartmentForm of Restricted Stock Unit

 EXHIBIT 10.4 
  
 

 
  
 RESTRICTED STOCK UNITS AWARD

 [DATE] 
  
 [TEAMMATE NAME] 
 [TEAMMATE ADDRESS] 
  
 RE:     RESTRICTED STOCK UNITS AWARD 
  
 Dear [TEAMMATE NAME]: 
  
 In recognition of your continuing contributions toward making DaVita the Greatest Dialysis Company the World has Ever Seen, and as a reward for your hard work and
commitment to living our Mission and our Values, you have been granted this award (the “Award”) of restricted stock units (“Restricted Stock Units” or “Units”) under DaVita’s 2002 Equity Compensation Plan (the
“Plan”). This Award represents your right to receive shares of common stock of DaVita Inc. (the “Company”), subject to your fulfillment of the vesting conditions set forth in this agreement (the “Agreement”).

  
 The terms of your Award are as set forth in this Agreement and in the Plan.
The Plan is incorporated into this Agreement by reference, which means that this Agreement is limited by and subject to the terms of the Plan. In the event of a conflict between the terms of this Agreement and the terms of the Plan, the terms of the
Plan will control. Capitalized terms that are used here but that are not defined in this Agreement have the meanings given to them in the Plan. The most important terms of the Award are summarized as follows: 
  
 1. Award Date: 
  
 2. Number of Units: 
  
 3. Vesting Schedule: The Award will vest according to the
following schedule: 
  

									
	 Vesting Date

	 	 Units then vesting

	 	 	 	 	 	 

  
 4. Conversion of
Restricted Stock Units and Stock Issuance. Upon each vesting date of the Award (each, a “Vesting Date”), one share of Common Stock will become 

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 issuable to you for each Restricted Stock Unit that vests on such Vesting Date (the “Shares”). After the Vesting Date, the Company will issue the Shares to you,
after reducing the Shares by the number of shares (if any) that are sold to satisfy your tax withholding obligations. No fractional shares will be issued under this Agreement, even though such fractions may result if a portion of a share must be
sold to pay your withholding taxes. 
  
 5. Termination of
Employment. You must be an employee of the Company on a Vesting Date in order to receive the Shares then vesting. Thus, Restricted Stock Units will not continue to vest if your employment terminates for any reason, including in the event you
die, become disabled, retire, or change to become an independent contractor. In those circumstances, you will forfeit your right to any Restricted Stock Units that would otherwise vest after the date on which your employment is terminated. 

  
 6. Right to Shares. You will not have any right to the
Shares subject to your Award until they are actually issued to you. 
  
 7. Taxes. 
  
 (a) Generally. You are
ultimately liable and responsible for all taxes owed in connection with the Award, regardless of any action the Company or any of its Subsidiaries takes with respect to any tax withholding obligations that arise in connection with the Award. Neither
the Company nor any of its Subsidiaries makes any representation or undertaking regarding the treatment of any tax withholding in connection with the grant or vesting of the Award or the subsequent sale of Shares issuable pursuant to the Award. The
Company and its Subsidiaries do not commit and are under no obligation to structure the Award to reduce or eliminate your tax liability. As a condition and term of this Award, no election under Section 83(b) of the United States Internal Revenue
Code may be made by you or any other person with respect to all or any portion of the Award. 
  
 (b) Payment of Withholding Taxes. Prior to any event in connection with the Award (e.g., vesting) that the Company determines may result in any domestic or foreign tax withholding obligation, whether national,
federal, state or local, including any social tax obligation (the “Tax Withholding Obligation”), you must arrange for the satisfaction of the minimum amount of such Tax Withholding Obligation in a manner acceptable to the Company. You may
choose to satisfy your tax obligation in either of the following manners: 
  
 (i) By Sale of Shares. Unless you choose to satisfy the Tax Withholding Obligation by some other means in accordance with clause (ii) below, your acceptance of this Award constitutes your
instruction and authorization to the Company and any brokerage firm determined acceptable to the Company for such purpose to withhold or sell on your behalf a whole number of Shares from those Shares issuable to you as the Company determines to be
appropriate to generate cash proceeds sufficient to satisfy the Tax Withholding Obligation. Such Shares will be sold on the day the Tax Withholding Obligation arises (e.g., a Vesting Date) or as soon thereafter as practicable. 

 Page 3 
  
 You will be responsible for all broker’s fees and other costs of sale, and you agree to indemnify and hold the Company harmless from any losses, costs, damages, or
expenses relating to any such sale. To the extent the proceeds of such sale exceed your Tax Withholding Obligation, the Company agrees to pay such excess in cash to you through payroll or otherwise as soon as practicable. You acknowledge that the
Company or its designee is under no obligation to arrange for such sale at any particular price, and that the proceeds of any such sale may not be sufficient to satisfy your Tax Withholding Obligation. Accordingly, you agree to pay to the Company or
any of its Subsidiaries as soon as practicable, including through additional payroll withholding, any amount of Tax Withholding Obligation that is not satisfied by the sale of Shares described above. 
  
 (ii) By Check, Wire Transfer or Other Means. At any time not
less than ten (10) business days before any Tax Withholding Obligation arises (e.g, a Vesting Date), you may notify the Company of your intent to make a separate cash payment to satisfy your Tax Withholding Obligation. If you elect to satisfy your
Tax Withholding Obligation in this manner, you will be asked to remit to the Company an amount that the Company determines is sufficient to satisfy the Tax Withholding Obligation within ten (10) business days after the Vesting Date by (a) delivery
of a certified check payable to the Company, attn: Dan Chandler, Stock Plan Administrator, P.O. Box 2076, Tacoma, Washington 98401-2076, or such other address as the Company may from time to time direct, (b) wire transfer to such account as the
Company may direct, or (c) such other means as the Company may establish or permit. If you do not remit this amount to the Company within twenty (20) business days after the Vesting Date, the Company reserves the right to satisfy your Tax
Withholding Obligation in the manner set out under paragraph (i) above in its sole discretion. 
  
 (c) Right to Retain Shares. The Company may refuse to issue any Shares to you until you satisfy the Tax Withholding Obligation. 
  
 8. No Assignment. Your interest in the Award may not be assigned or alienated, whether voluntarily or involuntarily.

  
 9. Amendments. This Award may be amended only by means
of a written document signed by both you and the Company. 
  
 10. Change of Control of the Company. Under certain circumstances, if the Company is sold, your entire Award will vest immediately. The specific rules regarding the circumstances in which full vesting occurs are contained in an
exhibit to this Agreement. 
  
 11.
Non-Competition/Non-Solicitation/Non-Disclosure. 
  
 (a) You acknowledge and recognize the highly competitive nature of the business of the Company and accordingly agree that while you are an employee of the Company and for the one-year period following termination of such relationship, you
will not (i) engage in or become an employee, director, principal or shareholder of, consultant 

 Page 4 
  
 to or equity participant in, any person, firm, partnership, joint venture, association, corporation or other business organization, entity, or enterprise other than the
Company that engages in activities that are in competition with the Company in the United States; (ii) (x) directly or indirectly induce any employee of the Company, its affiliates or its subsidiaries or any physician with privileges at a dialysis
facility owned by the Company, its affiliates or its subsidiaries to (A) engage in any activity that you have agreed to refrain from pursuant to (i) above or (B) terminate his or her relationship with the Company or any of its affiliates or
subsidiaries or (y) directly or indirectly employ, or offer employment to or other similar arrangement with, any person who is or was during the period of your employment or consulting or advisory relationship with the Company, or was beforehand,
employed or engaged by the Company, its affiliates or subsidiaries, including but not limited to a medical director of a dialysis facility owned or operated by the Company, its subsidiaries or affiliates, or a physician with admitting privileges at
a dialysis facility owned, operated or managed by Company, or one of its affiliates or subsidiaries, or (iii) take any action that results, or might reasonably result in any of the foregoing. 
  
 (b) In addition, you agree not to disclose or use for your own benefit or
purposes or for the benefit or purposes of any person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise other than the Company and any of its subsidiaries or affiliates, any trade
secrets, information, data, or other confidential information relating to customers, development, programs, costs, marketing, trading, investment, sales activities, promotion, credit and financial data, financing methods, plans, or the business and
affairs of the Company (“Information”); provided, however, the foregoing shall not apply to (i) Information which is not unique to the Company, or (ii) Information which is generally known to the industry or the public other than as a
result of your breach of his covenant, or (iii) disclosure that is required by any applicable law, rule or regulation. If you receive such a request to produce Information in your possession, you shall provide Company reasonable advance notice, in
writing, prior to producing said Information, so as to give Company reasonable time to object to your producing said Information. 
  
 (c) If, at any time within (a) the Term of this Agreement, or (b) one (1) year after termination of employment for any reason, whichever is the latest,
you (i) breach the non-competition provision of Section 11(a), (ii) breach the non-solicitation provision of Section 11(a), (iii) breach the non-disclosure provision of Section 11(b), (iv) are convicted of a felony, (v) have been adjudicated by a
court of competent jurisdiction of having committed an act of fraud or dishonesty resulting or intending to result directly or indirectly in personal enrichment at the expense of the Company, or (vi) are excluded from participating in any federal
health care program, then (1) this Agreement shall terminate effective on the date on which you enter into such activity, and (2) any consideration received by you a result of this Award under this Agreement shall be paid by you to the Company.

  
 12. Execution of Award Agreement. In order for this
Award to be effective, you must sign one copy of it and return it to Daniel Chandler, Stock Plan Administrator of the Company, in the enclosed envelope within 90 days of the Award Date. 

 Page 5 
  
 Very truly yours, 
  
 DAVITA INC. 
  

	
	

	 Vice President, Secretary and General Counsel

 Page 6 
  
 I, a resident of                      (state), accept and agree
to the terms of the Restricted Stock Unit Award described in this Agreement and in the Plan, acknowledge receipt of a copy of this Agreement, the Plan, and the applicable Plan Summary, and acknowledge that I have read them carefully and that I fully
understand their contents. 
  

			
	 	  	 ____________________________

	 Taxpayer ID Number: [INSERT SSN]
	  	 [INSERT TEAMMATE NAME]

	 Award Number: [INSERT GRANT ID]
	  	 Dated:                                     
   

	 Award Date: [INSERT GRANT DATE]
	  	 
	 	  	 Address:                                     
           

	 	  	 ____________________________

	 	  	 ____________________________

	 	  	 ____________________________

 Page 7 
  
 Events Causing Full Vesting of Awards 
  
 The shares subject to your Restricted Stock Unit Award will become fully vested upon the Company having a “Change of Control,” as that term is defined below:

  
 Change of Control will mean: 
  
 (i) any transaction or series of transactions in which any person or group (within the
meaning of Rule 13d-5 under the Exchange Act and Sections 13(d) and 14(d) under the Exchange Act) becomes the direct or indirect “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), by way of a stock issuance, tender
offer, merger, consolidation, other business combination or otherwise, of greater than 50% of the total voting power (on a fully diluted basis as if all convertible securities had been converted and all warrants and options had been exercised)
entitled to vote in the election of directors of the Company (including any transaction in which the Company becomes a wholly-owned or majority-owned subsidiary of another corporation), or 
  
 (ii) any merger or consolidation or reorganization in which the Company does not survive, or

  
 (iii) any merger or consolidation in which the Company survives, but the
shares of the Company’s Common Stock outstanding immediately prior to such merger or consolidation represent 50% or less of the voting power of the Company after such merger or consolidation, or 
  
 (iv) any transaction in which more than 50% of the Company’s assets are sold.

  
 However, no transaction contemplated by clauses (i) through (iv) above shall
constitute a Change of Control if both (x) the person acting as the Chief Executive Officer of the Company for the 6 months prior to such transaction becomes the Chief Executive Officer or Executive Chairman of the Board of Directors of the entity
that has acquired control of the Company as a result of such transaction (the “Acquirer”) immediately after such transaction and remains the Chief Executive Officer or Executive Chairman of the Board of Directors for not less than one year
following the transaction and (y) a majority of the Acquirer’s board of directors immediately after such transaction consist of persons who were directors of the Company immediately prior to such transaction.

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