Document:

Exhibit

Exhibit 10.1

AMENDMENT TO STOCK APPRECIATION RIGHTS AGREEMENTS 

This Amendment to Stock Appreciation Rights Agreements is entered into effective as of March 1, 2018, by and between DaVita Inc., a Delaware corporation (the “Company”), and Carol Anthony Davidson (the “Grantee”).
WHEREAS, in connection with Grantee’s annual compensation from the Company for his service as a non-employee member of the Board of Directors (the “Board”) of the Company, and pursuant to the Company’s 2011 Incentive Award Plan (the “Plan”), the Company granted to Grantee each of the Stock-Settled Stock Appreciation Rights (“SSARs”) awards set forth below (collectively, the “SSAR Grants”): 

	
			
	Grant Date
	Number of SSAR Base Shares
	Expiration Date

	June 17, 2013
	24,000
	6/17/2018

	June 17, 2014
	5,414
	6/17/2019

	June 16, 2015
	4,662
	6/16/2020

	June 20, 2016
	5,015
	6/20/2021

	June 16, 2017
	7,178
	6/16/2022

WHEREAS, the Company and Grantee entered into Stock-Settled Stock Appreciation Rights Agreements dated as of June 17, 2013, June 17, 2014, June 16, 2015, June 20, 2016 and June 16, 2017 respectively (the “SSAR Agreements”), that set forth the terms and conditions applicable to the SSAR Grants; 
WHEREAS, pursuant to Section 2.53 of the Plan, the Plan “Administrator,” which is the Board for purposes of matters pertaining to awards to directors of the Company pursuant to Section 13.1 of the Plan, has the authority within its sole discretion to make determinations and changes with respect to the SSAR Grants regarding the time within which Mr. Davidson must exercise the SSARs, including by extending the time that Mr. Davidson otherwise would have had to exercise the awards; 
WHEREAS, by resolutions adopted by the Board at its meeting on January 30 - February 1, 2018, the Board revised the SSAR Grants to provide that rather than having three (3) months from Termination of Service (as defined in the Plan) within which Mr. Davidson must exercise the SSARs, Mr. Davidson would be able to exercise the SSARs at any time up until the original expiration dates of the SSAR Grants; and 
WHEREAS, in order to have the SSAR Agreements be consistent with and reflect the action taken by the Board, the Company and Grantee desire to amend the SSAR Agreements pursuant to Section 11 thereof; 
NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the parties hereto, intending to be legally bound hereby, agree as follows: 

1.The parties acknowledge that prior to the amendment contemplated herein, the language of  Section 2(b) of each of the respective SSAR Agreements reads as follows:

(b)    This SAR shall expire and cease to be exercisable on the earlier to occur of:

(i)     the Expiration Date,

      (ii)     the date which is three (3) months after the date on which the Grantee's membership on the Board of Directors of the Company terminates unless such termination is the result of Grantee's death (or Grantee dies during the three (3) month period following the termination of his or her membership on the Board of Directors of the Company) or Grantee was disabled (within the meaning of Section 22(e)(3) of the Code) at the time of such termination of membership on the Board of Directors of the Company, or
   
(iii)     the date which is one (1) year from the date of termination of Grantee's membership on the Board of Directors if such termination is the result of Grantee's death (or Grantee dies during the three (3) month period following the termination of his or her membership on the Board of Directors of the Company) or Grantee was disabled (within the meaning of Section 22(e)(3) of the Code) at the time of such termination of membership on the Board of Directors.

(iv)     Notwithstanding the foregoing, the SAR shall terminate no later than the Expiration Date, regardless of whether or not Grantee remains a member of the Board of Directors of the Company.

2. The parties agree that each of the respective SSAR Agreements shall be amended such that after the amendment, the language of  Section 2(b) of Exhibit A to the respective SSAR Agreements shall read in its entirety as follows:
“(b)    This SAR shall expire and cease to be exercisable on the Expiration Date.”
For the avoidance of doubt, the Expiration Date as defined in the SSAR Agreements for the 2013, 2014, 2015, 2016 and 2017 SSAR Grants, respectively, are June 17, 2018, June 17, 2019, June 16, 2020, June 20, 2021, and June 16, 2022.
		
	3.
	The parties agree that the 2017 SSAR Agreement shall be amended such that after the amendment, the Vesting Schedule under the Primary Terms shall read in its entirety as follows:

“Vesting Schedule:  100% on March 1, 2018, provided that all other terms and conditions of the Plan are met.”

IN WITNESS WHEREOF, the parties hereto have executed this Amendment to Stock Appreciation Rights Agreements.
 	
				
	COMPANY
	 
	GRANTEE

	 
	 
	 
	 

	By
	/s/ Chetan P. Mehta
	 
	/s/ Carol Anthony Davidson

	 
	Chetan P. Mehta
	 
	Carol Anthony Davidson

	 
	 Group Vice President, FinanceExhibit

EXHIBIT 10.2

DAVITA INC.
NON-EMPLOYEE DIRECTOR COMPENSATION POLICY

ARTICLE I

PURPOSE

The primary purposes of the DaVita Inc. (the “Company”) Non-Employee Director Compensation and Reimbursement Policy (this “Policy”) are as follows:

		
	•
	to pay differentially higher compensation for higher levels of work, responsibility and performance;

		
	•
	to provide a compensation structure that will attract highly competent candidates; and

		
	•
	to provide a significant portion of compensation in the form of equity-based awards to align non-employee director compensation with increases in long-term shareholder value.

All references to “Director” in this Policy shall mean a member of the Company’s Board of Directors (the “Board”) who is not employed by the Company.

ARTICLE II

BASE ANNUAL RETAINER

Each Director shall receive a base annual retainer (the “Base Annual Retainer”) of up to Two Hundred Seventy Thousand Dollars ($270,000) per fiscal year as follows:

2.1    Cash:    Eighty Thousand Dollars ($80,000) to be paid in quarterly installments made within five business days of the last calendar day of each fiscal quarter;

2.2    Stock Settled Stock Appreciation Rights:  Ninety-Five Thousand Dollars ($95,000) to be paid in the form of stock-settled stock appreciation rights (“SSARs”). The SSARs shall be subject to the following terms and conditions (the “SSAR Grant Terms”):

		
	2.2.1
	Grant Date:  The SSARs shall be granted on May 15 of each year (the “Annual Grant Date”).

		
	2.2.2
	Amount:  The number of SSARs to be granted shall be the nearest whole number of shares determined by dividing $95,000 by twenty percent (20%) of the closing market price of the Company’s common stock as listed on the New York Stock Exchange on the Annual Grant Date, and if the Annual Grant Date does not fall on a trading day, then on the last trading day prior to the Annual Grant Date.

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	2.2.3
	Vesting:  The SSARs shall vest one hundred percent (100%) on the one year anniversary following the Annual Grant Date.

		
	2.2.4
	Expiration:  The SSARs shall expire five years following the Annual Grant Date. 

2.3    Direct Stock Issuances:  Ninety-Five Thousand Dollars ($95,000) to be paid in the form of direct stock issuances (“DSIs”) granted quarterly.  The DSIs shall be subject to the following terms and conditions (the “DSI Grant Terms”):

		
	2.3.1
	Grant Date:  The DSIs shall be granted on the last calendar day of each fiscal quarter. 

		
	2.3.2
	Amount:  The number of DSIs to be granted shall be the nearest whole number of shares as determined by dividing $23,750 by the closing market price of the Company’s common stock as listed on the New York Stock Exchange on the last trading day of each fiscal quarter.

2.4    Proration:  The Base Annual Retainer shall be prorated, as applicable, based on the days of service on the Board within a fiscal quarter.  SSARs granted on a prorated basis shall be granted and priced as of the close of market on the first day of service on the Board, which date shall be determined by the Board upon such individual’s appointment as a Director.

ARTICLE III

ANNUAL RETAINER PREMIUM – LEAD INDEPENDENT DIRECTOR

A Director serving as the Lead Independent Director of the Board shall be paid a premium (the “Lead Director Premium”) of up to One Hundred Twenty-Five Thousand Dollars ($125,000) per fiscal year as follows:

3.1    Cash:    Thirty-Seven Thousand Five Hundred Dollars ($37,500) to be paid in quarterly installments made within five business days of the last calendar day of each fiscal quarter.

3.2    Stock Settled Stock Appreciation Rights:  Forty-Three Thousand Seven Hundred Fifty Dollars ($43,750) to be paid in the form of SSARs, subject to the SSAR Grant Terms provided in Section 2.2 above.

3.3    Direct Share Issuances:  Forty-Three Thousand Seven Hundred Fifty Dollars ($43,750) to be paid in the form of DSIs to be granted quarterly, subject to the DSI Grant Terms provided in Section 2.3 above. 

3.4    Proration:  The Lead Director Premium shall be prorated, as applicable, based on the days of service on the Board within a fiscal quarter.  SSARs granted on a prorated basis shall be granted and priced as of the close of market as listed on the New York Stock Exchange on the first day of service, which date shall be determined by the Board upon such Director’s appointment as the Lead Independent Director.

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ARTICLE IV

ANNUAL RETAINER PREMIUM – COMMITTEE CHAIRS

A Director serving as a Chair of a committee (“Committee”) of the Board shall be paid a cash premium (the “Chair Premium”) per fiscal year as follows:
 
4.1    Chairs of the Audit, Compensation and Compliance Committees:    Fifty-Thousand Dollars ($50,000) to be paid each in quarterly installments made within five business days of the last calendar day of each fiscal quarter.

4.2    Chairs of the Public Policy and Clinical Performance Committees:  Twenty-Five Thousand Dollars ($25,000) to be paid each in quarterly installments made within five business days of the last calendar day of each fiscal quarter.

4.3    Chair of the Nominating and Governance Committee:  No Chair Premium will be paid for services provided as Chair of the Nominating and Governance Committee.

4.4    Proration:  A Chair Premium shall be prorated, as applicable, based on the days of service as a Chair of a Committee within a fiscal quarter.

ARTICLE V

MEETING FEES

A Director shall be paid the following fees for his or her in person or telephonic attendance of Board and Committee meetings as follows:
 
5.1    Board:  Two Thousand Five Hundred Dollars ($2,500) cash for attendance of: (1) special Board meetings held in person, irrespective of length, and (2) special Board meetings held telephonically that last approximately one hour.  No additional compensation shall be provided for attendance of regular Board meetings. 

5.2    Committees/Sub-Committees:  Two Thousand Five Hundred Dollars ($2,500) cash for attendance of the following Committee meetings, provided that the Director is a member of such Committee: (1) regular or special Committee meetings held in person, and (2) regular or special Committee meetings held telephonically that last approximately one hour. Notwithstanding the foregoing, each member of the Audit Committee shall be paid Two Thousand Five Hundred Dollars ($2,500) in cash for his or her in person or telephonic attendance to each Audit Committee meeting related to quarterly earnings releases, regardless of the duration of such meeting. 

5.2.1    Notwithstanding anything herein to the contrary, a Director shall be paid $2,500 in cash for attendance to a regular or special meeting of a Committee of which such Director is not a member, provided that such Director’s attendance was made at the request of the Committee’s chair and provided further that such payment is made in accordance with this Section 5.2.

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5.2.2    New Committee Members:  A Director attending a Committee meeting held earlier on the same day of his or her appointment by the Board to such Committee, will be eligible to receive Committee meeting fees as described under this Section 5.2. 

ARTICLE VI

EXPENSE REIMBURSEMENT AND COMPENSATION
FOR ADDITIONAL TIME EXPENDED

6.1    Expense Reimbursement.  Each Director shall be reimbursed for his or her reasonable out-of-pocket business expenses incurred in connection with attending meetings of the Board or its Committees or in connection with other Board related business.   

6.2    Compensation for Additional Time.  Each Director shall be compensated in cash on a “per diem,” hourly or other basis at a rate that is reasonable and fair to the Company as determined in the discretion of the Lead Independent Director (or, should the matter be referred to  them, the Board or the Compensation Committee), for significant time spent outside of Board or Committee meetings for meetings or activities outside the scope of normal Board duties, including director training, meeting with Company management or external auditors, interviewing director candidates or other activities deemed necessary by the Chairman of the Board, the Lead Independent Director, or the entire Board.  Any dollar amounts set for a particular unit of time shall be paid on a pro rata basis for time expended that is less than the full unit of time for which a rate was set.  The Lead Independent Director shall oversee requests for compensation under this Article VI.

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