Document:

Exhibit 10.1

Articles of Association of
Fresenius Medical Care AG & Co. KGaA

I.              General
Terms

Art. 1 Name and Registered Office

(1)                               The
Company is a partnership limited by shares (KGaA). The name
of the Company is

Fresenius Medical Care AG & Co. KGaA

(2)                               The
registered office of the Company is in Hof an der Saale.

Art. 2 Objects of the Business

(1)                               The
objects of the Company are:

a)        the development,
production and distribution of as well as the trading in health care products,
systems and procedures, including dialysis;

b)       the projecting, planning, establishment,
acquisition and operation of health care businesses, including dialysis
centers, also in separate enterprises or through third parties as well as the
participation in such dialysis centers;

c)        the development,
production and distribution of other pharmaceutical products and the provision
of services in this field;

d)       the provision of advice in
the medical and pharmaceutical areas as well as scientific information and
documentation;

e)        the provision of
laboratory services for dialysis and non-dialysis patients and homecare medical
services.

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The Company will operate
itself or through subsidiaries at home and abroad.

(2)                               The
Company shall be entitled to enter into any and all business transactions and take
any and all measures which seem to be necessary or useful to achieve the
objects of the Company and may, in particular, participate in other enterprises
of the same or similar kind, take over the management and/or the representation
of such enterprises, transfer company divisions, including essential company
divisions, to enterprises in which the Company holds an interest and establish
branches at home and abroad.

Art. 3 Notifications and Publications

(1)                               All
notifications of the Company shall be made in the electronic Federal Gazette (Elektronischer Bundesanzeiger).

(2)                               English
short versions of the invitations to general meetings which must provide for
the place, date and time and the items on the agenda of the general meeting and
the prerequisites of participation in the meetings as well as English short
versions of the other notifications shall also be published in The Wall Street
Journal and in The New York Times. The newspapers mentioned above are not
journals used by the Company for notifications in the sense of Article 3
paragraph (1); such publications shall not be a pre-condition for a valid
notification of the Company. With the consent of the supervisory board the
general partner may determine deviations from this provision.

II.                                  Capital and Shares

Art. 4 Capital

(1)                               The
capital of the Company amounts to EUR 250,271,178.24 (in words: two
hundred and fifty million two hundred and seventy one thousand one hundred
seventy eight Euro and twenty four Cent) and is divided into 96,629,422 (in
words: ninety six million six hundred twenty nine thousand and four hundred
twenty two) bearer ordinary shares and 1,132,757 (in words: one million one

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hundred thirty two thousand and seven hundred fifty
seven) non-voting bearer preference shares.

In case of issuance of non-voting bearer preference
shares, particulars thereof are set forth in Article 19.

No consent of the preferred shareholders shall be
required for the issuance of non-voting bearer preference shares which, for the
distribution of the profits or the corporate assets, will be equal to or be
preferred to the non-voting bearer preference shares existing from time to
time, if and to the extent that the subscription rights of the preference
shareholders are not excluded.

(2)                               The
capital stock in the amount of DM 100,000.00 (in words: one hundred thousand
Deutsche Mark) available at the transformation of the Company into a Stock
Corporation was raised through change of the legal form of the legal entity of
previous legal form, Fresenius Medical Care GmbH with registered office in Hof
an der Saale.

The capital stock in the amount of
EUR 250,271,178.24 (in words: two hundred and fifty million two hundred
and seventy one thousand one hundred seventy eight Euro and twenty four Cent)
available at the transformation of the Company into a partnership limited by
shares (KGaA) was raised through change of the legal form of the legal entity
of previous legal form, Fresenius Medical Care AG with registered office in Hof
an der Saale.

(3)                               The
general partner is authorized, in the period up to 29 August 2010, with
the approval of the supervisory board, to increase, on one or more occasions,
the capital of the Company by up to a total of EUR 35,000,000.00 (in
words: thirty five million Euro) for cash by the issue of new bearer ordinary
shares (Authorized Capital I). The number of shares must increase in the same
proportion as the capital. The general partner is further authorized, with the
approval of the supervisory board, to decide on the exclusion of shareholders’
pre-emption rights. Exclusion of pre-emption rights is admissible, however,
only for fractional amounts. The new shares may also be taken up by credit
institutions to be specified by the general partner, with the obligation to
offer them to the shareholders (indirect pre-emption rights). The general
partner is further authorized, with the approval of the supervisory board, to
determine the further details of the implementation of the capital increase out
of Authorized Capital I. The

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supervisory board is authorized to amend the Articles
of Association after complete or partial implementation of the capital increase
out of Authorized Capital I or after the expiry of the authorized period in
accordance with the amount of the capital increase out of Authorized Capital I.

(4)                               The
general partner is authorized, in the period up to 29 August 2010, with
the approval of the supervisory board, to increase, on one or more occasions,
the capital of the Company by up to a total of EUR 25,000,000.00 (in words:
twenty five million Euro) for cash and/or contributions in kind by the issue of
new bearer ordinary shares (Authorized Capital II). The number of shares must increase
in the same proportion as the capital. The general partner is further authorized,
with the approval of the supervisory board, to decide on the exclusion of
shareholders’ pre-emption rights. Exclusion of pre-emption rights is admissible,
however, only if

·                                in
the case of a capital increase for cash the amount of capital attributable to
the new shares does not exceed 10% of the share capital at the time of the
issue of the new shares and the issue price for the new shares is not
significantly lower than the stock exchange price of the listed shares of the
same class and rights at the time of the final determination of the issue price
by the general partner, or

·                                in
the case of a capital increase for contributions in kind the grant of shares
should be for the purpose of acquiring an enterprise, parts of an enterprise or
a participation in an enterprise.

The general partner is further authorized, with the
approval of the supervisory board, to determine the further details of the
implementation of the capital increase out of Authorized Capital II. The supervisory
board is authorized to amend the Articles of Association after complete or
partial implementation of the capital increase out of Authorized Capital II or
after the expiry of the authorized period in accordance with the amount of the
capital increase out of Authorized Capital II.

(5)                               The
capital of the Company is conditionally increased by up to EUR 3,728,215.04 (in
words: three million seven hundred twenty eight thousand two hundred and
fifteen Euro and four Cent) by the issue of up to 1,108,074 (in words: one
million one hundred eight thousand and seventy four) new 

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non-voting bearer preference shares and by up to
348,260 (in words: three hundred forty eight thousand two hundred and sixty)
new bearer ordinary shares. The conditional capital increase will be
implemented only to the extent that, in accordance with the employee
participation program resolved on by the general meeting of 24.09.1996
convertible bonds relating to non-par value 
shares will be issued and the holders of convertible bonds exercise
their right of conversion. The new non-voting bearer preference shares and the
new bearer ordinary shares shall participate in profits from the beginning of
the fiscal year in which they arise by the exercise of the right of conversion.

(6)                               The
capital of the Company is conditionally increased by up to EUR 2,245,980.16 (in
words: two million two hundred and forty five thousand nine hundred and eighty
Euro and sixteen Cent) by the issue of up to 768,162 (in words: seven hundred
sixty eight thousand one hundred and sixty two) new non-voting bearer
preference shares and by up to 109,174 (in words: one hundred nine thousand one
hundred and seventy four) new bearer ordinary shares. The conditional capital
increase will be implemented only to the extent that, in accordance with the
share option program resolved on by the general meetings of 10.06.1998 and
30.05.2000, share options relating to non-par value shares have been issued and
the holders exercise their options. The new non-voting bearer preference shares
and bearer ordinary shares shall participate in profits from the beginning of
the fiscal year in which they are issued.

(7)                               The
capital of the Company is conditionally increased by up to EUR 8,964,738.56 (in
words: eight million nine hundred and sixty four thousand seven hundred and
thirty eight Euro and fifty six Cent) by the issue of up to 1,109,967 (in
words: one million one hundred nine thousand nine hundred and sixty seven) new
non-voting bearer preference shares and by up to 2,391,884 (in words: two
million three hundred ninety one thousand eight hundred eighty four) new bearer
ordinary shares. The conditional capital increase will be implemented only to
the extent that, in accordance with the international employee participation
program resolved on by the general meeting of 23.05.2001 convertible bonds relating
to non-par value shares have been issued and the holders of convertible bonds
exercise their right of conversion. The new non-voting bearer preference shares
and the new bearer ordinary shares shall participate in profits from the
beginning of the fiscal year in which they arise by the exercise of the right
of conversion.

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(8)                               The
capital of the Company is conditionally increased by up to EUR 12,800,000.00
(in words: twelve million eight hundred thousand Euro) by the issue of up to
5,000,000 (in words: five million) new bearer ordinary shares. The conditional
capital increase will be implemented only to the extent that options have been
issued in accordance with the Stock Option Program 2006 under the resolution of
the general meeting of 9.05.2006, the holders of options exercise their right
and the Company for the satisfaction of the options does not grant any of its
own shares, for the granting and processing of options of members of the
management board of the general partner, its supervisory board is exclusively
competent. The new bearer ordinary shares participate in profits from the beginning
of the financial year in which they are issued.

(9)                               In
case of a capital increase, the profit participation may be determined in derogation
from Section 60 (2) German Stock Corporation Act (AktG).

Art. 5 Shares

(1)                               The
shares will be non-par value bearer shares.

(2)                               The
Company shall be entitled to issue share certificates made out to bearer each
evidencing a plurality of shares (collective share certificates). There is no
claim of the shareholders to share certificates with respect to their
individual participation.

(3)                               The
form of the share certificates and of the dividend coupons and renewal coupons
shall be determined by the general partner with the consent of the supervisory
board.

(4)                               The
Company shall take the necessary measures to achieve that its shares will,
preferably, be admitted for official quotation on the stock exchange in Frankfurt
am Main and in suitable form - e.g. as American Depositary Shares - on the New
York Stock Exchange and that such admissions will be maintained. With the
consent of the supervisory board which must decide unanimously on such consent,
the general partner may determine deviations from this provision.

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III.                              Constitution
of the Company

A. General Partner

Art. 6 General Partner,
Capital Contribution, Legal Relationships and

Resignation

(1)           General
partner of the Company is

Fresenius Medical Care Management AG

with registered office in Hof an der Saale.

(2)           The
general partner has not made a capital contribution. It shall neither participate
in the profit or the loss of the Company nor in its assets.

(3)           The
general partner will cease to be general partner of the Company if and when all
shares in the general partner are no longer held directly or indirectly by a
person holding more than 25 per cent of the capital of the Company, directly or
indirectly via a controlled enterprise in the sense of Section 17 (1) German
Stock Corporation Act (AktG); this
will not apply if and when all shares in the general partner are held directly
or indirectly by the Company.

Additionally, the general partner will cease to be general partner of
the Company, if the shares in the general partner are acquired by a person

·                                who
does not acquire shares of the Company in the amount of more than 25 per cent
of the capital of the Company or

·                               who
had not, within three months after the effectiveness of such acquisition,
submitted a voluntary or mandatory takeover offer to the shareholders of the
Company according to the rules of the German Takeover Act (WpÜG); the fair
consideration offered to the shareholders must also reflect the consideration
which the purchaser had paid for the share in the general partner, if the
amount for such consideration is above the amount of its equity capital.

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The other grounds for withdrawal as provided for by law remain
unaffected with respect to the general partner.

(4)           If the
general partner withdraws from the Company or if such withdrawal can be
foreseen, the supervisory board is authorized and obliged to admit immediately,
or at the time of the withdrawal of the general partner, as new general partner
of the Company a corporation whose shares are fully owned by the Company. If
the general partner withdraws from the Company while no new general partner is
admitted simultaneously as aforesaid, the Company shall for the time being be
continued by the limited shareholders of the Company alone. In such case, the
supervisory board shall immediately apply for the appointment of a substitute
representative who will represent the Company until the admission of a new
general partner according to sentence 1 of this paragraph, in particular with respect
to the acquisition or formation of such new general partner.

The supervisory board is authorized to adjust the version of the
Articles of Association so as to reflect the change of the general partner.

(5)           In the
case of the continuing of the Company pursuant to Article 6 paragraph (4) of
these Articles of Association or in the case that all shares in the general partner
are held directly or indirectly by the Company an extraordinary general meeting
or the next annual general meeting shall decide about the transformation of the
Company into a stock corporation (Aktiengesellschaft).
The resolution with respect to such transformation can be taken with a simple
majority of the votes cast. The general partner is obliged to consent to such
transformation decided by the general meeting.

Art. 7 Management and
Representation of the Company, Reimbursement of Expenses and Remuneration

(1)           The
Company shall be represented by its general partner. Vis-à-vis the general
partner the Company shall be represented by the supervisory board.

(2)           The
general partner shall be responsible for management of the Company. The general
partner’s management authority also encompasses exceptional management
measures. The right of the shareholders to consent to exceptional management
measures at the general meeting is excluded.

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(3)           The
general partner shall be reimbursed for any and all expenses in connection with
management of the Company’s business, which includes remuneration of the
members of its executive bodies. The general partner shall invoice its expenses
monthly; it is entitled to claim payment in advance.

(4)           As
consideration for assuming the management of the Company and the liability, the
general partner shall receive a non-profit-and-loss-based annual remuneration
of 4 per cent of its equity capital.

(5)           The
general partner is not authorized to undertake transactions for its own or for
another’s account outside the scope of its responsibilities within the Company.

B. Supervisory Board

Art. 8 Election and Term
of Office of the Supervisory Board

(1)           The
supervisory board consists of six (6) members.

All six (6) members shall be elected by the general meeting according
to the provisions of the German Stock Corporation Act (AktG).
The resolution can only be taken with a majority of a minimum of 75 per cent of
the votes cast.

(2)           Unless
expressly otherwise resolved by the general meeting, the supervisory board
members shall be appointed to hold office until the end of the ordinary general
meeting which resolves on the discharge for the fourth fiscal year after
commencement of the term of office. The year in which the term of office
commences shall not be considered for this calculation. Re-election of supervisory
board members shall be permissible.

(3)           If
a member elected by the general meeting withdraws from the supervisory board
before expiration of his term of office, a new member is to be elected in the
next general meeting to replace the withdrawing member. The newly elected
member shall hold office for the remaining term of office of the withdrawing member.

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(4)           The
general meeting may, for the supervisory board members to be elected by it,
appoint substitute members who will become members of the supervisory board on
the basis of a specific order to be determined upon election if and when
supervisory board members withdraw before expiration of their term of office.
Their position as substitute members shall revive if and when the general
meeting elects a new member instead of the withdrawing supervisory board member
replaced by such substitute member. The term of office of the substitute member
shall end upon completion of the general meeting in which an election according
to Article 8 paragraph (3) is made.

(5)           Each
member of the supervisory board may resign from office by giving one month’s
written notice even without good cause.

Art. 9 Constitution of
the Supervisory Board

(1)           Following
the general meeting in which the supervisory board has been newly elected, the
supervisory board shall hold a meeting without special notice of meeting and,
where necessary, shall elect in such meeting from among its members a chairman
and a deputy chairman for the whole term of office of the elected persons as
supervisory board members.

(2)           If the
chairman or his deputy resigns his office before expiration of his term of
office, the supervisory board shall immediately hold a new election to replace
the resigning chairman/deputy.

Art. 10 Meetings and
Resolutions of the Supervisory Board

(1)           The
meetings of the supervisory board shall be called by the chairman by notice
subject to a notice period of fourteen (14) days. The meetings may be called in
writing, by fax or by other electronic means of communication. The items on the
agenda must be stated in the invitation to the meeting. Notwithstanding sentence
2, in urgent cases, this period may be shortened and the meeting may be called
by telegram, telex or telephone.

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(2)           The
meetings of the supervisory board shall in the regular case be by personal
attendance. It is, however, admissible that meetings of the supervisory board
be held by way of a video conference or that individual supervisory board
members participate by way of video link, provided that in these cases the
passing of resolutions also takes place by way of a video conference or video
link. Outside of meetings, resolutions in writing, telegraph, telex, fax, telephone
or electronic communication (e-mail etc.) are admissible, if this is ordered by
the chairman of the supervisory board, or in the event of his being unable to
act, by his deputy.

(3)           The
supervisory board shall constitute a quorum if half the members making up the
entire board take part in the adoption of the resolution.

(4)           If
members of the supervisory board are prevented from attending the meeting, they
may have another member of the supervisory board submit their written votes.
Such delivery of the written vote shall be deemed to be participation in the
adoption of the resolution.

(5)           Resolutions
of the supervisory board shall require the majority of the votes cast unless
otherwise provided by law or the Articles of Association. In case of a tie, a
new vote shall be taken on the same issue at the request of the chairman of the
supervisory board or of another member of the supervisory board. In the event
that such new vote leads again to a tie, the chairman of the supervisory board
shall have two (2) votes (to the legally permissible extent, this shall apply
also to committees of the supervisory board of which he is a member). Article
10 paragraph (4) shall be applicable to the casting of the second vote. The
deputy chairman of the supervisory board shall not be entitled to such second
vote.

(6)          Minutes
of the meetings of the supervisory board shall be prepared in the English
language. The minutes shall be signed by the chairman of the meeting. Any
minutes to be prepared outside of the meeting by personal attendance (Präsenzsitzung), as outlined in Article 10 paragraph (2)
with respect to resolutions shall be signed by the chairman of the supervisory
board. On demand of a member of the supervisory board a German translation of
the minutes shall be prepared.

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Art. 11 Rights and
Duties of the Supervisory Board

(1)                                 The
supervisory board shall have the rights and duties defined by mandatory legal
provisions and these Articles of Association.

(2)                                 The
supervisory board shall, at any time, have the right to supervise the entire
management of the general partner and to inspect and audit all books and records,
including the minutes of the meetings of the management board of the general
partner, as well as the assets of the Company. This right to inspect and audit
can also be claimed by any individual supervisory board member. The supervisory
board member must direct his request to the chairman of the supervisory board
who shall pass the request on to the chairman of the management board of the
general partner or, in the case that a chairman does not exist, to the
management board of the general partner.

(3)                                 The
general partner shall regularly report to the supervisory board. In addition,
the supervisory board may request the submission of a report if and when there
is reasonable cause therefore including where such cause relates to a business
event at an affiliated company which has become known to the general partner
and which may substantially influence the situation of the Company. Article 11
paragraph (2), sentences 2 and 3 apply mutatis mutandis with the proviso that a
report only to the supervisory board can be demanded.

(4)                                 If
the Company holds a participation in its general partner, all rights of the
Company under and with respect to such participation (e.g. voting rights, information
rights etc.) will be exercised by the supervisory board.

(5)                                 The
supervisory board shall be entitled, without resolution of the general meeting,
to make any amendments to the Articles of Association which concern only the
wording.

Art. 12
Rules of Procedure of the Supervisory Board, Audit and Corporate Governance
Committee

(1)                                 The
supervisory board shall, within the statutory provisions and the Articles of
Association, provide itself with rules of procedure which shall, in particular,

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also take account of the
interests of the non-German speaking supervisory board members.

(2)                                 The
supervisory board has an audit and corporate governance committee. The audit
and corporate governance committee has three members at least two of whom are
independent members. Independent members are persons who, apart from their
membership of the supervisory board of the general partner or of Fresenius AG,
have no significant business, professional or personal relations with the
Company or any of its affiliates. The audit and corporate governance committee
reviews the report of the general partner on relations to affiliates without
affecting the competence of the supervisory board. The report of the
supervisory board is to contain a report on the activity of the audit and
corporate governance committee and its proposals. The rules of procedures of
the audit and corporate governance committee shall provide more detailed
provisions.

Art. 13 Remuneration of
Supervisory Board Members

(1)                                 The
members of the supervisory board shall be reimbursed for the expenses incurred
in the exercise of their office, including any value-added tax.

(2)                                 Each
member of the supervisory board shall receive a fixed fee of USD 80,000.00 per
annum for each full fiscal year, payable in four equal instalments at the end
of each calendar quarter.

In the event that the general meeting, taking into
consideration the annual results, resolves a higher remuneration by a three
fourths majority of the votes cast, such higher remuneration shall be payable.

(3)                                 The
chairman of the supervisory board shall receive additional remuneration in the
amount of USD 80,000.00 and his deputy additional remuneration in the
amount of USD 40,000.00.

(4)                                 As
a member of a committee, a supervisory board member shall receive, in addition,
USD 30,000.00 per year, or as chairman of a committee, USD 50,000.00 per year,
payable in each case in four equal installments at the end of each calendar
quarter.

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(5)                                 If
a fiscal year is not a complete calendar year, the remuneration shall be paid
on a pro rata temporis basis.

(6)                                 To
the extent that a member of the supervisory board is at the same time member of
the supervisory board of the General Partner Fresenius Medical Care Management
AG and receives remuneration for his services as member of the supervisory
board of Fresenius Medical Care Management AG, the remuneration according to
Article 13 (2) will be reduced to half of it. The same shall apply in
relation to additional remuneration of the Chairman and his deputy according to
Article 13 (3) if such person is, at the same time, the chairman or his
deputy, respectively, of the supervisory board of Fresenius Medical Care Management
AG. If the deputy of the chairman of the supervisory board of the Company is at
the same time chairman of the supervisory board of Fresenius Medical Care
Management AG he shall not receive additional remuneration according to Article
13 (3) for his services as deputy of the chairman of the Company.

(7)                                 The
Company shall pay the remuneration of the supervisory board members subject to
statutory deductions.

(8)                                 The
Company shall provide the members of the supervisory board with an insurance
protection regarding the fulfilment of their duties as such members of the
supervisory board which is subject to an appropriate deductible.

C. Joint
Committee

Art. 13a Joint
Committee

The Company has a joint committee consisting of two
members of the supervisory board of the general partner delegated by the general
partner and two members of the supervisory board of the Company (Joint
Committee). The general partner shall appoint one of its delegates to be
chairman of the Joint Committee.

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Art. 13b
Appointment and Period of Office of Members of the Joint Committee

(1)                                 Section
103 (2) German Stock Corporation Act (AktG) shall
apply to the members of the joint committee to be delegated by the general
partner.

(2)                                 The
members of the supervisory board of the Company on the joint committee will be
appointed by resolution of the general meeting. For the appointment and removal
of members of the supervisory board of the Company in the joint committee, the
provisions on the election and removal of members of the supervisory board in
Sections 103 (1) and (5), 124 (3) sent. 1, 127, 137, 285 (1) sent. 2 No. 1
German Stock Corporation Act (AktG) apply
accordingly. If a member of the supervisory board of the Company on the joint
committee leaves the joint committee prior to the expiry of his period of
office and no replacement member is appointed, the supervisory board of the
Company shall appoint a replacement member from among its members, the period
of office of whom will end at the ending of the next ordinary general meeting
of the Company.

(3)                                 For
the members of the joint committee Section 103 (3) sent. 1 and 4 German Stock
Corporation Act (AktG) apply accordingly. The
joint committee shall decide on resolutions with a simple majority.

(4)                                 The
provisions in Art. 8 (2) to (5) shall apply to the election and periods of office
of members of the joint committee unless otherwise provided in subsecs. (1) and
(2).

Art. 13c Rights
and Duties of the Joint Committee

(1)                                 The
general partner requires the approval of the joint committee for the following
matters:

a)                           transactions
between the Company and companies controlled by it on the one hand and a
company which controls the Company or a company which is controlled by the
controlling company, without at the same time being controlled by the Company
on the other side, if considerable importance is attributed to them and the
consideration in the transaction in a single case or – in the case of long-term
transactions – the annual expense exceeds 0.25% of the group turnover. The
group turnover as

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shown in the group
financial statements of the Company presented most recently to the general
meeting according to Sections 278 (3), 176 (1) sent. 1 German Stock Corporation
Act (AktG) is decisive.

b)                          The
acquisition and sale of significant participations and parts of companies;

c)                           the
spin-off of significant parts of the business from the assets of the Company or
of a company in which it holds directly or indirectly all the shares;

d)                          part
mergers which refer to a significant part of the business;

e)                           conclusion
of inter-company agreements between a company significantly under the control
of the Company and a third party;

f)                             conclusion
of leases of operations with third parties insofar as the subject matter of the
lease is a significant part of the business;

g)                          the
stock market flotation of significant companies controlled by the Company;

h)                          the
conclusion of profit-sharing agreements between a company significantly
controlled by the Company and a third party.

(2)                                 Matters
referred to in (1) b) to h) are significant if 40% of the group turnover, the
group balance sheet total and the group profit (annual surplus prior to interest
and tax/EBIT) is affected by the matter. The significance shall be determined
on the basis of the mathematical average of the said figures in the audited and
unreservedly certified group accounts of the Company in the previous three
financial years.

(3)                                 The
competences and rights of the general meeting under statute and the Articles of
Association remain unaffected.

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Art. 13d Meetings
and Resolutions of the Joint Committee

(1)                                 Meetings
of the joint committee will be called by its chairman stating the matter which
is to be the subject of a resolution.

(2)                                 The
chairman of the joint committee shall with the invitation, but at the latest
the third day prior to the meeting of the joint committee, transmit a report of
the general partner on the matters which are the subject matter of resolutions.
The report shall conclude with a draft resolution of the general partner.

(3)                                 Every
member of the joint committee can demand information on all affairs of the
Company which are the subject matter of resolutions, from the general partner.
At the request of two members of the joint committee, the members of the joint
committee are to be granted the facility to inspect the books and documents of
the Company if and to the extent a reference to the subject matter of the resolution
exists.

(4)                                 The
joint committee has a quorum if at least three members participate in the
taking of the resolution. If a resolution is not passed because of the lack of
a quorum, the chairman of the joint committee shall again call a meeting of the
joint committee with notice of at least one week, which shall then have a quorum
if at least two members participate in the taking of the resolution. The joint
committee decides by a majority of the votes. Every member of the joint committee
has one vote. In the case of a tie, a new vote on the same subject is to be
taken on the application of the chairman or another member of the joint committee.
In that vote, if there is also a tie, the chairman of the joint committee has
two votes.

(5)                                 Unless
otherwise provided in (1) to (4), Art. 10 of the Articles of Association shall
apply to the meetings and the resolutions of the joint committee.

Art. 13e Rules of
Procedure, Report, Remuneration

(1)                                 The
joint committee can, subject to mandatory legal provisions and the Articles of
Association of the Company give itself rules of procedure which will, in particular,
take account of the interests of the non-German speaking members of the joint
committee.

 17
 

 

 

(2)                                 If
the joint committee has met, it shall report to the general meeting on its activities.
Section 171 (2) sent. 1 and 2 (first half sentence) German Stock Corporation
Act (AktG) and Section 176 (1) sent. 1 German
Stock Corporation Act (AktG) shall
apply mutatis mutandis. If resolutions are passed by the exercise of the second
vote of the chairman of the joint committee, this is to be disclosed in the
report.

(3)                                 The
members of the joint committee shall receive USD 3,500.00 for a meeting. Art.
13 (1), (7) and (8) of the Articles of Association apply accordingly.

Art. 13f Duty of
Care and Responsibility of the Members of the Joint Committee

Section 116 German Stock Corporation Act (AktG) applies to the members of the joint committee mutatis
mutandis.

D.
General Meeting

Art. 14 Calling of
the General Meeting

(1)                                 The
general meeting shall be called no later than thirty days before the day by the
end of which the shareholders must register according to Article 15,
unless a shorter period is permitted by law. In calculating such period, the
day the general meeting is called and the day by the end of which the shareholders
must register before the meeting shall not be counted; if the end of that
period is a Sunday, an official holiday at the registered office of the Company
or a Saturday, such day will be replaced by the preceding working day.

(2)                                 No
later than on the last day of the convocation period, also the English short
version pursuant to Article 3 paragraph (2) shall be published, if necessary.

(3)                                 The
general meeting shall be held at the place where the registered office of the
Company is located, or in a German city where a stock exchange is situated or
at the place where the registered office of a domestic affiliated company is located.

 18
 

 

 

Art. 15 Attendance at the
General Meeting

(1)                                 Only
those shareholders shall be entitled to attend the general meeting who have
registered in writing (Textform) in the German or English language at the location
given in the calling of the general meeting no later than on the fifth day before
the general meeting.

(2)                                 Further,
shareholders are required to provide evidence of their entitlement to attend
the general meeting and to vote. This requires certification showing ownership
of their shares to be issued by the depository bank. Certification must refer
to the beginning of the twenty-first day before the general meeting, 0.00 hours
at the registered office of the Company. Certification must be received by the
Company in writing (Textform) in the German or English language at the location
given in the calling of the general meeting no later than on the fifth day before
the general meeting.

(3)                                 The
members of the management board of the general partner and of the supervisory
board should personally attend the general meeting. If it is not possible for a
member of the supervisory board to attend at the place of the general meeting,
in particular, because he is abroad for cause, he may participate in the general
meeting by sound and picture transmission.

(4)                                 If
a voting right is to be exercised by a proxy, authorization in writing
(Textform) shall be sufficient.

Art. 16 Date of the
Ordinary General Meeting

The general meeting which resolves on the adoption of
the annual financial statement and on the discharge of the general partner and
the supervisory board and on the disposition of the profits (ordinary general
meeting) shall be held within the first eight (8) months of a fiscal year.

 19
 

 

 

Art. 17
Chairmanship at the General Meeting and Voting

(1)                                 The
general meeting shall be chaired by the chairman of the supervisory board or,
if he is prevented or at the request of the chairman of the supervisory board,
by another supervisory board member to be designated by the chairman of the
supervisory board. If and when no such designation has been made and the
chairman of the supervisory board is prevented, another member to be designated
by the supervisory board shall preside over the general meeting.

(2)                                 The
chairman shall chair the meeting and determine the order of items to be dealt
with as well as the kind and form of the voting. The chairman is entitled to
reasonably limit the speaking time of the shareholders and the time to ask questions
from the beginning of the general meeting on, if such limitation is allowed by
law.

(3)                                 The
majorities of the votes cast and of the capital stock represented for the
adoption of the resolution which are required for the resolutions of the general
meeting shall be governed by the statutory provisions, unless otherwise provided
for in these Articles of Association. In case of a tie, a proposal shall be deemed
denied.

(4)                                 Each
ordinary share shall grant one (1) vote at the general meeting. The preference
shares have no voting rights, unless otherwise required by mandatory legal
provisions; otherwise, sentence 1 of this paragraph shall apply mutatis mutandis.

(5)                                 The
chairman can decide that the entire general meeting or extracts therefrom be
transmitted in sound and/or picture. Such transmission can even be in a form to
which the public has unlimited access. The form of the transmission should be
made known in the invitation.

(6)                                 To
the extent that the resolutions of the general meeting are subject to the consent
of the general partner, the general partner shall declare at the general meeting
whether consent to the resolutions will be given or will be refused.

 20
 

 

 

IV.           Annual Financial Statement and
Disposition of Profits

Art. 18 Fiscal
Year, Rendering of Accounts

(1)                                 The
fiscal year shall be the calendar year.

(2)                                 Within
the first three (3) months of the fiscal year but no later than within the
maximum period required by mandatory legal provisions, the general partner
shall prepare the annual financial statement and the management report for the
preceding fiscal year and submit the same to the supervisory board without delay.
The general partner may allocate in the annual financial statement a part of
the annual net profit up to the half of the annual net profit to other revenue
reserves.

(3)                                 The
supervisory board shall commission the audit by the auditors of the financial
statements. Before the audit report of the auditors is forwarded to the supervisory
board, the general partner shall be given the opportunity to express its opinion.

(4)                                 At
the same time as the submission of the annual financial statement and the
management report the general partner shall provide the supervisory board with
the proposal on the appropriation of the net profits.

(5)                                 The
annual financial statement shall be approved by a resolution of the general
meeting with the consent of the general partner.

(6)                                 Article
18 paragraphs (2) and (3) shall apply correspondingly to group financial
statements and to a report on the economic group position, as far as Section
170 (1) sent. 2 German Stock Corporation Act (AktG)
is applicable to the Company as Parent Company.

Art. 19 Disposition of
Profits

(1)                                 The
general meeting shall resolve on the disposition of the balance sheet profits
subject to the following paragraphs (2) to (4) of this Article.

 21
 

 

 

(2)                                 Out
of the annual balance sheet profits, the non-voting bearer preference shares
shall receive a dividend which exceeds that for the ordinary shares by an
amount of EUR 0.06 per preference share, but at least a dividend in an
amount of EUR 0.12 per preference share.

(3)                                 The
minimum dividend of EUR 0.12 per preference share shall take precedence
over the distribution of a dividend on the ordinary shares.

(4)                                 In
the event that the balance sheet profits for one or more fiscal years are insufficient
to distribute EUR 0.12 per preference share, the lacking sums shall be
paid subsequently without interest out of the balance sheet profits for the following
fiscal years, i.e. after distribution of the minimum dividend on the preference
shares for these fiscal years and before distribution of a dividend on the
ordinary shares. The right to subsequent payment shall be part of the profit
share for the fiscal year from the balance sheet profits of which the subsequent
payment on the preference shares is made.

V.
Miscellaneous

Art. 20 Partial
Invalidity

Should any of the provisions of these Articles of
Association be or become ineffective in whole or in part, or should these
Articles of Association have a regulatory gap, the validity of the remaining
provisions hereof shall not be affected. The Parties shall replace any such
ineffective provision by an adequate provision that, as far as legally
possible, comes closest to the intent and purpose of these Articles of
Association; The same shall apply in case of a regulatory gap.

Art. 21 Formation
Expenses

(1)                                 The
formation expenses (Notary’s fees, court costs, costs of notification) amount
up to DM 5,000.00 (in words: five thousand German Marks).

(2)                                 Additionally,
the Company has to bear the expenses for the transformation of Fresenius
Medical Care AG into Fresenius Medical Care AG & Co. KGaA in an

 22
 

 

 

amount up to EUR
7,500,000.00 (in words: seven million five hundred thousand Euro).

 

 23Exhibit 10.2

 

18 May 2006

FRESENIUS MEDICAL CARE

AG & Co. KGaA

STOCK
OPTION PLAN 2006

 

TABLE OF CONTENTS

	
  CLAUSE

  	
   

  	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  PREAMBLE AND PURPOSE

  	
   

  	
  1

  
	
  2.

  	
   

  	
  OPTIONS

  	
   

  	
  1

  
	
  3.

  	
   

  	
  THE TERM OF THE PLAN

  	
   

  	
  2

  
	
  4.

  	
   

  	
  PARTICIPANTS AND DISTRIBUTION OF THE OPTIONS

  	
   

  	
  2

  
	
  5.

  	
   

  	
  GRANT OF OPTIONS

  	
   

  	
  3

  
	
  6.

  	
   

  	
  EXERCISE PRICE

  	
   

  	
  3

  
	
  7.

  	
   

  	
  CONDITIONS FOR THE EXERCISE OF THE OPTIONS

  	
   

  	
  3

  
	
  8.

  	
   

  	
  EXERCISE OF THE
  OPTIONS

  	
   

  	
  6

  
	
  9.

  	
   

  	
  EFFECTIVENESS OF THE EXERCISE OF THE OPTIONS

  	
   

  	
  6

  
	
  10.

  	
   

  	
  OPTION OFFICE

  	
   

  	
  7

  
	
  11.

  	
   

  	
  ADJUSTMENT OF THE EXERCISE PRICE

  	
   

  	
  7

  
	
  12.

  	
   

  	
  OPTIONS IN SPECIAL CASES

  	
   

  	
  8

  
	
  13.

  	
   

  	
  TRANSFERABILITY AND FORFEITURE

  	
   

  	
  9

  
	
  14.

  	
   

  	
  TAXES, CONTRIBUTIONS AND OTHER EXPENSES

  	
   

  	
  9

  
	
  15.

  	
   

  	
  PROCEDURE, ENDING AND ADJUSTMENT OF THE PLAN

  	
   

  	
  10

  
	
  16.

  	
   

  	
  LIABILITY RISKS, EXCHANGE RISKS AND TAX RISKS

  	
   

  	
  11

  
	
  17.

  	
   

  	
  MISCELLANEOUS PROVISIONS

  	
   

  	
  11

  
	
  18.

  	
   

  	
  DEFINITIONS

  	
   

  	
  12

  

 

 i

 

 

1.                                               PREAMBLE
AND PURPOSE

1.1                                          The ordinary General Meeting of Fresenius
Medical Care AG & Co. KGaA (the Company)
on 9 May 2006 decided (i) to increase the capital up to 12,800,000.00
Euro subject to the issue of 5,000,000 non par value bearer ordinary shares of
the Company (hereinafter referred to as the
Shares) by way of creating conditional capital and (ii) to
grant these options to members of the management board of Fresenius Medical
Care Management AG (the General Partner)
in their capacity as organs of the General Partner of the Company, to the
members of the management boards of affiliated companies and to managerial
staff members (Führungskräfte) of the Company
and affiliated companies within the FMC Group (hereinafter referred to as the Options), which entitle the holders to
purchase a total maximum of 5,000,000 shares. Members of the management and employees solely employed by Fresenius AG
or affiliated companies which are affiliated to the Company only through
Fresenius AG are excluded. Instead of new shares to fulfil the
obligation out of this stock option plan, shares of the Company which have been
acquired by the Company or which the Company itself has in its own possession
can also be issued if a separate authorising resolution is passed by the general
meeting.

1.2                                          This stock option plan (the Plan) contains the requirements, conditions
and procedures for the grant and exercise of the Options (the Option Conditions) and has been adopted by
the General Partner and, in so far as members of the management board of the
General Partner entitled under this plan, by the supervisory board of the
General Partner.

1.3                                          The purpose of this Plan is to align the
interests of the management and managers with the interest of the shareholders
in the long term growth of the Company value in order in this manner to take
account of shareholder value. At the same time Company offers its management
and employees, by the introduction of the Plan, an internationally competitive
remuneration component the long term benefits of which, in close connection
with the success of the Company, in a transparent and intelligent system occupy
the central points. The Plan therefore constitutes an incentive to direct
decisions at the achievement of the ambitious, clearly defined Success Target
for the Company.

2.                                               OPTIONS

2.1                                          The Options issued under the Plan entitle the
holders of the Options to purchase Shares in accordance with the terms of the
Option Conditions.

2.2                                          One Option carries the entitlement to
purchase one non par value bearer ordinary share of the Company. In this Plan,
a total of up to 5,000,000 Options which grant entitlement to subscribe for a
total of 5,000,000 non par value bearer shares may be issued within the term of
the Plan. The right to subscribe for Shares can be satisfied either out of the
conditional capital created for that purpose or from the Company’s stock of its
own shares. If the management board of the General Partner is concerned, its
supervisory board will decide about the way how to satisfy the right to subscribe
for shares, for the other Participants, the General Partner.

 1
 

 

 

2.3                                          An Option has a period of validity of seven
years from the time at which it is granted to the Participant.

2.4                                          The Options will not be evidenced by
certificates.

3.                                               THE
TERM OF THE PLAN

The Plan has a term of
five years, beginning on the first day of the first calendar month after entry
of the conditional capital in the commercial register. Clause 2.3 (Options)
remains unaffected.

4.                                               PARTICIPANTS
AND DISTRIBUTION OF THE OPTIONS

4.1                                          Options
can be issued only to the following groups of persons (hereinafter referred to
as the Participants); the maximum limits
stated below may not be exceeded (in relation in each case to the entire
group):

	
  (a)

  	
   

  	
  Members of the management board of the General
  Partner

  	
   

  	
  max. 1,000,000 Options

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Members of the management boards of affiliated
  companies within the FMC group

  	
   

  	
  max. 1,000,000 Options

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Managerial staff members (in the sense of grading by
  the Company) of the Company and affiliated companies within the FMC group.

  	
   

  	
  max. 3,000,000 Options

  

 

4.2                                          For
the individual members of the management board of the General Partner its
supervisory board will decide whether they are entitled to receive Options. For
the other Participants the General Partner will decide this.

4.3                                          The number of Options to be granted to a
Participant is determined on the basis of individual performance of the
Participant and the Participant’s responsibilities within FMC Group. This
determination will be made in the case of management board members of the
General Partner by its supervisory board. The General Partner makes the
determination for the other Participants.

4.4                                          There is no legal right to the grant of
Options on the basis of this Plan. The status or possible status of an employee
as Participant or the fact that a Participant was granted Options in the past
cannot be interpreted as an obligation that this employee or a possible
Participant in general or in the future will be granted Options. In particular
no operational practice (betriebliche Übung)
is constituted by the grant of Options. This applies even if Options are
granted in several successive years.

 2
 

 

 

5.                                               GRANT
OF OPTIONS

5.1                                          The grant of the total Options available in
accordance with Clause 4.1 should be made as far as possible in equal tranches
throughout the term of the Plan. This can, however, be subject to deviation in
the case of objective grounds (sachliche Gründe),
decided by the General Partner’s supervisory board with respect to Options
granted to the management board of the General Partner, otherwise by the
General Partner.

5.2                                          The Options will be granted to the
Participants in each case with effect on the last Monday in July and/or
the first Monday in December (both days are referred to as the Grant  Date
in each case); the grant shall be made in text form. If the
conditional capital created by the General Meeting resolution of 9
May 2006 is not entered in the commercial register prior to
1 July 2006, Options will be granted for the first time on the first
working day of the calendar month following the entry.

5.3                                          The grant of Options will be made without any
additional payment (Zuzahlung).

6.                                               EXERCISE
PRICE

The exercise price of an
Option shall be the average Stock Exchange Price of non par value bearer
ordinary shares of the Company on the Frankfurt stock exchange on the last 30
calendar days prior to the Grant Date in each case in Euro. Clause 11
(Adjustment of the Exercise Price) remains unaffected.

7.                                               CONDITIONS
FOR THE EXERCISE OF THE OPTIONS

For the exercise of the
Options, all the following conditions, subject to the general conditions of
this Plan, must be fulfilled.

7.1                                          Waiting Period for the
Exercise/Exercise Period/Black-Out Periods

(a)                                          Unless otherwise expressly stated in these
Option Conditions, the Options may be exercised only after the expiration of
the Waiting Period, during the Exercise Period and before the end of their term
in accordance with Clause 2.3, not, however, during the Black-Out Periods.

(b)                                         The Waiting Period is three years from the
Grant Date in each case (the Waiting Period).
After expiry of the Waiting Period, the Options can be exercised during any
Exercise Period within the term of the Options.

(c)                                          The exercise of the Options can be declared
in each case at any time outside Black-Out Periods (the Exercise Period).

(d)                                         The Black-Out Periods are the following in
each case:

(i)                                              the period from the
21st calendar day prior to a Company’s general
meeting until the end of the day of such general meeting;

 3
 

 

 

(ii)                                           the period from the
day on which the Company publishes an offer to its shareholders to subscribe
for new shares in a stock exchange gazette or the Electronic Federal Gazette up
to the day on which the shares of the Company issued in accordance with that
right are listed for the first time on the Frankfurt Stock Exchange “ex
subscription rights”; and

(iii)                                        the period from the
fifteenth calendar day prior to the publication of the quarterly results/annual
results until the publication of the quarterly results/annual results.

The above mentioned
black-out periods include in each case the times for beginnings and ends
stated. On inquiry, the Company shall inform the Participants of the exact
beginning and end dates of the periods in which exercise is blocked.

If the management board
of the General Partner is concerned, its supervisory board and if other
Participants are concerned, the General Partner, shall, in justified
exceptional cases, determine other black-out periods, the beginning of which
will in each case be notified to the Participants in due time in advance.

7.2                                          Success Targets/(Partial)
Forfeiture in case of Non-achievement

(a)                                          The Success Target is achieved if within the
three year Waiting Period after the grant of Options to the Participant, the
adjusted basic income per ordinary share (EPS)
in each case, in comparison to the EPS of the previous financial year, has
increased by at least eight per cent.

(b)                                         The EPS shall be calculated following the
US-GAAP (Generally Accepted Accounting Principles)
methodology based upon the hereafter described adjusted net income as follows:

The adjusted net income
corresponds to the net income shown in the consolidated financial statements of
the Company (prepared in accordance with the accountancy principles of
US-GAAP),

(i)                                              to which is added the
costs shown in the relevant consolidated financial statement for:

·                              -
provided that the costs occur only once - the purchase, integration and
financing of companies (in particular the Renal Care Group, Inc.) or
dialysis clinics, including the costs in connection with

·                                any
costs and expenses attributable to liability exposure existing already prior to
the time of acquisition and/or

·                                the
sale of dialysis clinics irrespective of whether this was ordered by the
competent anti-trust authority or not;

 4
 

 

 

·                              extraordinary
items in the meaning of the US-GAAP;

·                              effects
of new US-GAAP pronouncements, in the first year the pronouncement becomes
effective; and

·                              any
tax effects in respect to the above mentioned points; and

(ii)                                           from which is
subtracted any gains shown in the consolidated financial statements in each
case by reference to the following

·                              the
sale of dialysis clinics irrespective of whether this was ordered by the
competent anti-trust authority or not;

·                              extraordinary
items as defined under US-GAAP;

·                              effects
of new US-GAAP pronouncements, in the first year the pronouncement becomes
effective; and

·                              any
tax effects in respect to the above mentioned points.

(c)                                          In the first year of the application of the
Stock Option Plan 2006 the calculation of the Success Target shall be based on
an income available for all classes of shares for the respective years 2005 and
2006 excluding any effects related to the transformation of the legal form of
the Company into a KGaA and to the conversion of the Company’s preference
shares into ordinary shares (both concluded in 2006).

(d)                                         The determination of EPS and changes thereto
compared to the EPS of the relevant comparison year will be verified in a
binding manner in each case by the auditors of the Company on the basis of the
audited consolidated financial statements for the question of the admissibility
of exercise of Options.

(e)                                          If the Success Target is not achieved in one
or more of the three comparison periods within the Waiting Period, the Options
issued in each case are forfeited only in the proportion in which the Success
Target has not been achieved within the Waiting Period, i.e. for one-third,
two-thirds or completely. (Example: If 90 Options are issued in 2006 and if the
Success Target is not achieved on one occasion within the three year Waiting
Period, the Participants can, after the expiry of the Waiting Period, exercise
60 Options subject to compliance with the general conditions of this Plan.)

7.3                                          Personal Preconditions for
Exercise

(a)                                          The entitled persons must at the time of
exercise be in employment or service relationship with the Company, a domestic
or foreign affiliated company in the FMC Group or with the General Partner.

 5
 

 

 

(b)                                         Clause 12 (Options in Special Cases) remains
unaffected.

8.                                               EXERCISE
OF THE OPTIONS

8.1                                          Within the Exercise Period, the entitled
person can exercise the Options exercisable under Clause 7 in whole or in part
in each case.

8.2                                          The exercise of the Options must be declared
in writing to the Company or, if an Option Office is nominated under Clause 10
(Option Office), to this Option Office (Exercise
Declaration). The Exercise Declaration must be received within the
Exercise Period and must contain the declaration as to how many Options of the
entitled person are exercised. If the Exercise Declaration is not received in
time, it is deemed as not to have been made. If the Option Office undertakes,
in accordance to Section 198 Stock Corporation Act, the necessary declaration
vis-á-vis the Company for the
Participant, a form for the making of the Exercise Declaration (for example,
entry in an electronic system) can be agreed between the Participant and the
Option Office.

8.3                                          The exercise of the Options is irrevocable
and cannot be made subject to any conditions whatsoever.

8.4                                          The Options can only be exercised if the
Exercise Price for the Options which are intended to be exercised is paid. The
Exercise Price must be received by the Company or, if an Option Office in
accordance with Clause 10 (Option Office) is named, by the Option Office at the
latest on the day of the effect of the exercise of the Options. Clause 9
(Effectiveness of the Exercise of the Options) remains unaffected.

8.5                                          In case an Option Office is named by the Company,
Options can only be exercised if Participants grant an irrevocable
power-of-attorney in writing to the Option Office on the form provided to
entitle the Option Office to make all declarations and undertake all actions
necessary for the acquisition of Shares.

8.6                                          The entitled person must state on what
account the shares arising out of the exercise of his Options are to be
entered. He can state that the shares arising out of the exercise of his
Options should immediately be sold. The Company will make reasonable efforts
that the Option Office will render services necessary to comply with the
requirements of the Plan when Options should immediately be sold.

9.                                               EFFECTIVENESS
OF THE EXERCISE OF THE OPTIONS

9.1                                          The exercise of the Options shall be
effective on the day of receipt by the Company of the Option Declaration or if
an Option Office is named, by the Option Office if the receipt is within the
Usual Banks’ Working Hours (übliche Bankarbeitszeiten),
otherwise on the next following Banking Day.

9.2                                          For the Options of the management board of
the General Partner, its supervisory board and for the other
Participants/entitled persons, the General Partner, can provide that the
exercise

 6
 

 

 

of the Options will be effective only uniformly after the expiry of a
maximum of ten Banking Days after the end of the Exercise Period, if this is to
be indicated on grounds of processing.

10.                                        OPTION
OFFICE

For technical processing
of the exercise of the Options, the management board can instruct a credit
institution to act as an Option Office.

11.                                        ADJUSTMENT
OF THE EXERCISE PRICE

11.1                                    If the Company, during the term of the
Options, while granting a direct or indirect
subscription right to its shareholders increases its capital by the issue of
new shares or issues bonds with conversion or option rights and if, in that
case, fixed conversion or option prices per share are less than the Exercise
Price for the Options, the General Partner or if members of the management
board of the General Partner are affected, its supervisory board, is entitled
to establish financial equality for the Participants. This equality may be
established by the reduction of the Exercise Price or the adjustment of the
number of Options or a combination of both. The Participants have no right to
such financial equality. In the case of the issue of shares, debentures or
options in the course of equity based incentive programs of the Company, no
equalization will be granted.

11.2                                    In the event of a capital increase out of
retained earnings by the issue of new shares, the conditional capital will, in
accordance with Section 218 Stock Corporation Act (Aktiengesetz,
AktG), be increased in the same proportion as the share capital. The
right of the Participants to subscribe new shares by the exercise of Options
shall increase in the same proportion. The Exercise Price will be reduced in
the same proportion. If the capital increase out of retained earnings takes
place without the issue of new shares, (Section 207 ss. 2 sentence 2 AktG)
the Options and the Exercise Price remain unchanged.

11.3                                    In the event of a capital reduction, no
adjustment of the Exercise Price or the option ratio shall take place if by the
capital reduction the total number of shares is not changed or the reduction is
associated with a repayment of capital or with the acquisition of the Company’s
own shares for a valuable consideration. In the case of a capital reduction by
merger of shares without capital redemption and in the case of an increase in
the number of shares without any change in capital (share split), the number of
shares which can be acquired for each Option at the Exercise Price shall be
reduced or increased in proportion to the capital reduction or share split. The
Exercise Price for one Share shall be adjusted in the same proportion.

11.4                                    When adjusting the Exercise Price or the
number of Options it has to be taken care of that this does not lead to
additional tax under Section 409A of the U.S. Internal Revenue Code of
1986 as amended (the “IRC”).

 7
 

 

 

12.                                        OPTIONS
IN SPECIAL CASES

12.1                                    Leaving on Age Grounds

If the Participant
retires from employment or service with a company of the FMC Group upon
reaching the minimum required age for retirement, without having been
dismissed, the Options remain unaffected. Disability, occupational disability
and early retirement shall be equivalent to retirement. The Participant is
obligated to give evidence to the Company or an office named by the Company of
the occurrence of the above mentioned cases within three months of the
retirement date in an appropriate manner. Otherwise, for the management board
of the General Partner, its supervisory board and for the other Participants,
the General Partner, may declare the Options to be forfeited without
replacement.

12.2                                    Ordinary
Termination/Cancellation of Employment by Agreement

If the employment or
service of a Participant with the Company or an affiliated company within the
FMC Group has ended by termination or by agreement, the Participant can
exercise the Options which are exercisable at the time the employment or
service relationship ends within the 60 calendar day period immediately
following such termination or agreement, subject to extension for any Black-Out
Period which would reduce the 60 calendar day period. Each Option not exercised
after the expiry of this Exercise Period, shall be forfeited without
replacement irrespective of whether the further conditions of this Plan have
been fulfilled. Clause 12.4 (Extraordinary Termination) remains unaffected.

12.3                                    Death

In the case of the death
of a Participant, the Options remain unaffected. These rights may be exercised
by the Heirs of the Participant. The Heirs are obligated to give evidence of
their entitlement within three months after the death of the Participant upon
which the Participant’s estate passes to his heirs in an appropriate manner;
otherwise, for the Options of the former members of management board of the
General Partner, its supervisory board and for the Options of other former
Participants, the General Partner, may declare the Options to be forfeited
without replacement. Clause 12.4 (Extraordinary Termination) remains
unaffected.

12.4                                    Extraordinary Termination

The right to exercise the
Options in accordance with Clause 12.2 (Ordinary Termination) does not exist if
the Participant has ended the employment or service on grounds of termination
without notice issued by the Company or an affiliated company within the FMC
Group, or if at the time of leaving, there were grounds which would have caused
the Company or an affiliate within the FMC Group, to have issued an
extraordinary termination. The right to exercise the Options in accordance with
Clause 12.3 (Death) shall not exist if at the time of the death of the
Participant, there were good grounds which would have caused the Company or an
affiliated company within the FMC Group to issue an extraordinary termination.

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12.5                                    Engagement with Fresenius
Group

The Options will not be
affected by the transfer of a Participant from the Company or from an
affiliated company within the FMC Group to Fresenius AG or to companies
affiliated with Fresenius AG.

12.6                                    Effect of Change in Status
as Affiliated Company

If a company is no longer
an affiliated company of the Company within the FMC Group, the employment or
service of each Participant who is no longer engaged in the Company or an
affiliated company within the FMC Group shall be deemed to be terminated
according to Clause 12.2 (Ordinary Termination) in the meaning of this Plan and
in reference to all Options based on this Plan.

12.7                                    Individual Cases

In individual cases, the
supervisory board of the General Partner with regard to Options of the members
of the management board of the General Partner and the General Partner with
respect to Options of the other Participants, can waive or amend the provisions
according to Clause 12.1 (Leaving on Age Grounds) to Clause 12.4 (Extraordinary
Termination).

13.                                        TRANSFERABILITY AND FORFEITURE

13.1                                    Options granted under this Plan and Options
inherited according to Clause 12.3 are not transferable. Any purported assignment
or disposal over Options, such as the granting of sub-participations therein,
pledging, granting usufruct rights (Nießbrauch) or
the formation of a trust, shall be void and invalid. The same applies to legal
transactions which are financially equal to a transfer or assignment.

13.2                                    All unexercised Options are forfeited without
replacement on expiry of their term, irrespective of whether they were ever
exercisable within the terms of these Option Conditions.

14.                                        TAXES,
CONTRIBUTIONS AND OTHER EXPENSES

14.1                                    General

All taxes incurred in
connection with the Options or their exercise shall be borne by the holder of
such Options themselves. The obligation of the Company or an affiliated company
to pay income tax and other taxes or contributions on behalf of the
Participants remains unaffected. The Company or affiliated companies are
entitled for this purpose to deduct the necessary amounts from the
wages/salaries of the Participants until the tax and contributions are
completely repaid or to require the Participants to pay or provide for payment
of at least the minimum amount of any taxes and contributions that the Company
or an affiliated company may be required to withhold with respect to the Option
or their exercise. The Company can make the exercise of the Options by the
Participants conditional, inter alia, on

 9
 

 

 

evidence of payment of
tax and/or contributions, or that adequate security is provided by the
Participants. In this respect, the provisions of Section 38 ss. 4 Income
Tax Act are referred to.

14.2                                    Foreign Participants in the
Plan

If the Participant is not
liable for tax in Germany, the above provisions shall apply according to the
applicable foreign tax law. The Participant will, as the case may be, receive
from the Company or affiliated company a certificate as to the financial
benefit received.

14.3                                    Section 162
(m) U.S. Internal Revenue Code

If the supervisory board
of the General Partner, in its sole discretion, determines at the request of
the General Partner that the limitations on deductions under
Section 162(m) IRC may apply to an Option granted to Participants
hereunder, the supervisory board of the General Partner shall be entitled to
decide upon the grant of Options made to such Participants.

14.4                                 Costs

The Participants shall
themselves bear all costs in connection with the exercise of the Options or
will reimburse the Company for these costs.

15.                                        PROCEDURE,
ENDING AND ADJUSTMENT OF THE PLAN

15.1                                    Unless otherwise provided in this Plan, the
terms of the Plan shall be interpreted, waived, adjusted or otherwise
administered, for the members of the management board of the General Partner,
by its supervisory board and all Options granted to members of the management
board of the General Partner will be approved by its supervisory board.
Otherwise, the Plan shall be interpreted, waived, adjusted or otherwise
administered by the General Partner and all Options granted to the other
Participants will be approved by the General Partner. All acts of the General
Partner or its supervisory board in connection with the Plan shall be performed
in accordance with German law, the Articles of Association of the Company and
the relevant rules of procedure.

15.2                                    The General Partner is entitled, with the
approval of its supervisory board, to end the Plan with effect for all
Participants at any time. The Options already granted to the Participants
remain unaffected.

15.3                                    If the rights of the management board of the
General Partner are affected, its supervisory board, otherwise the General
Partner, is entitled to adjust the Plan at any time. This applies even to
dealing with Options already granted if this does not influence the value of
the Options or if financial compensation accordingly is granted.

15.4                                    The Plan shall be construed, interpreted and
administered to comply with Section 409A of the IRC so as to avoid any
Option resulting in “deferred compensation” to any Participant, including
without limitation the method for granting Options and making adjustments under

 10
 

 

 

Clause 11 (provided such administration complies with any applicable
laws). In addition, for the members of the management board of the General
Partner, its supervisory board and for all other Participants the General
Partner is entitled to adjust the Plan and/or the terms of an outstanding
Option, in each case without the consent of the holder of such outstanding
Option (provided any such adjustment complies with any applicable laws), to the
extent that the General Partner or as far as the management board of the
General Partner is concerned, its supervisory board, reasonably determines that
the adjustment is necessary or advisable in order to preserve the intended tax
consequences of the Option as not constituting deferred compensation in light
of Section 409A IRC and any regulations or other guidance promulgated
thereunder.

16.                                        LIABILITY
RISKS, EXCHANGE RISKS AND TAX RISKS

16.1                                    The liability of the Company, its legal
representatives, employees and agents and the Options Office, its legal
representatives, employees and agents for simple negligence and consequential
loss and loss of profit is excluded.

16.2                                    The Company undertakes no warranty for the
general market development and price of the shares of the Company after the
granting of Options or the exercise of Options or for any other point or period
in time. There is, in particular therefore, no warranty that the Participants
will be able to exercise the Options or that Participants who exercise Options
will obtain a financial benefit of the difference between the Exercise Price
and the current stock exchange price or are in a position to sell the shares
subscribed at a profit. The acceptance and exercise of Options therefore is at
the sole risk of each Participant.

16.3                                    The Company grants no warranty that the tax
and contributions deducted in accordance with Clause 14 (Taxes, Contributions
and other expenses) or that other tax and contributions payable by the
Participants will be charged only on the difference between the Exercise Price
and the current stock exchange price at the exercise of the Options or on
delivery of the shares, on profit actually achieved by (immediate) sale or on
any other specific sum. The Participants are advised to obtain advice on their
personal tax situation.

17.                                        MISCELLANEOUS
PROVISIONS

17.1                                    This Plan is subject exclusively to German
law. The German text version of the Plan prevails in all cases.

17.2                                    All provisions of this Plan are subject to
the conditions that the resolution of the General Meeting on which it is based
is legally valid and that the statutory conditions are fulfilled.

17.3                                    No provisions contained in this Plan (or in
any documents referring to this Plan) transfer to a Participant or possible
Participant any right to continuation of employment or service with the Company
or any of its affiliated companies within the FMC Group. No employment contract
or service agreement can be deduced there from, nor shall it have any effect on
the right of the Company or any affiliated company within the FMC Group to
change remuneration or other benefits of such persons or to terminate the
employment of such

 11
 

 

 

persons with or without notice. This applies subject to the provision
that this Plan or any document connected therewith will adversely influence any
independent contractual right of these persons.

17.4                                    If any provision of this Plan is invalid on
grounds other than those in Clause 17.2, this shall not affect the validity of
the remaining provisions of the Plan. The same applies if it is ascertained
that the Plan is subject to an omission. In that case, this paragraph shall apply
to the effect that in place of the invalid or unenforceable provision or to
repair an omission, such provision shall apply which most closely corresponds
to the intended purpose of this Plan.

17.5                                    References and headings attributed to
individual sections and subsections of this Plan are solely for the purpose of
easier reference. These headings are in no case significant or relevant for the
interpretation of the Plan.

17.6                                    No provision in this Plan leads to or infers
a presumption that the authority of the General Partner or the authority of its
supervisory board to issue Options or approve other remuneration connected or
not connected to shares granted by any other share based long term incentive
program or any other authority may be restricted.

18.                                        DEFINITIONS

18.1                                    Affiliated Company means any German or foreign enterprise of
the Company in the meaning of Sections 15 ff. Stock Corporation Act (Aktiengesetz).

18.2                                    The term Heir
means the person, the persons, the trust or trusts, which are nominated by a
Participant or, if no such nomination is made, is or are entitled by will or
law in the event of the death of a Participant, to receive the benefit of the
Options under this Plan. The concept “heir” therefore also includes the
executor appointed by will or the administrator appointed by the court, if no
heir is named and is in a position to act under the given circumstances.

18.3                                    The term Company
stands for Fresenius Medical Care AG & Co. KGaA, Hof an der Saale,
Germany.

18.4                                    Option Office is the credit institution which can be
entrusted by the General Partner with the technical processing of the exchange
of Options.

18.5                                    The term Grant
Date has the meaning specified in Clause 5.2.

18.6                                    Waiting Period is as defined in Clause 7.1.

18.7                                    Exercise Period is as defined in Clause 7.1.

18.8                                    Exercise Price is as defined in Clause 6.

18.9                                    Exercise Declaration is as defined in Clause 8.2.

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18.10                              FMC Group stands for the Company and its affiliated
companies with the exception of Fresenius Aktiengesellschaft and the companies
affiliated with Fresenius Aktiengesellschaft in any manner other than through
the Company.

18.11                              General Partner is the General Partner of the Company,
Fresenius Medical Care Management AG.

18.12                              Participants are persons to whom Options may be granted in
the manner defined in Clause 4.1 (Participants).

18.13                              The term Plan
refers to this stock option plan of the Company as amended from time to time.

18.14                              Share means non-par value bearer ordinary share in
the Company.

18.15                              Stock Exchange Price means the closing price (Schlusskurs) of the shares in electronic “Xetra” trading of
the Deutsche Börse AG in Frankfurt/Main or a comparable successor system. If no
closing price is set in the electronic “Xetra” trading, the General Partner is
entitled, with the approval of its supervisory board, to agree on a suitable
means of replacing the closing price set in electronic “Xetra” trading.

18.16                              Success Target is as defined in Clause 7.2 (Success
Target).

18.17                              Banking Days are days on which banks in Frankfurt/Main are
open for normal public business.

18.18                              Usual bank’s working hours are working
hours Banking Days during which customer orders are normally taken to enable
same-day execution.

 13

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