Document:

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                                                                    EXHIBIT 10.6

                              EMPLOYMENT AGREEMENT
                              --------------------

     This Employment Agreement (this "Agreement") is entered into effective
November 29, 1999, by and between Total Renal Care Holdings, Inc. (the
"Employer") and Gary Beil (the "Employee").

     1.   TERM OF AGREEMENT.
          -----------------

          Employer hereby agrees to employ Employee, and Employee hereby accepts
employment,  upon the terms and  conditions  hereinafter  set forth.  Employee's
employment  with  Employer is "at will," which means that Employee may terminate
his employment at any time,  with or without cause,  and with or without notice,
and, similarly,  that Employer may terminate Employee's  employment at any time,
with or without cause, and with or without notice.

     2.   DUTIES OF EMPLOYEE.
          ------------------

          (a)  Employee shall be the Vice President-Controller of Employer and
               shall perform the duties of such office, as well as such other
               duties that may be assigned to him by the Vice President & Chief
               Accounting Officer or other senior level executive of Employer.

          (b)  Employee agrees to devote substantially all of his time, energy,
               and ability to the business of Employer. Employee shall at all
               times observe and abide by Employer's policies and procedures as
               in effect from time to time.

          (c)  Unless otherwise agreed, Employee shall report to the Vice
               President and Chief Accounting Officer of Employer or his
               designee. Employee shall work in Employer's Tacoma, Washington
               Business Office.

     3.   COMPENSATION.
          ------------

          Employer shall pay to Employee in full consideration of all services
to be rendered by Employee:

          (a)  Salary: Employer will pay to Employee a base salary of $150,000
               ------
               annually. Such salary shall be earned bi-weekly and shall be
               payable in periodic installments consistent with Employer's
               payroll schedule. Amounts payable shall be reduced by standard
               withholdings and authorized deductions. Employer may, in its
               discretion, increase Employee's salary.

                                       1
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          (b)  Bonus. Employee shall be eligible to receive a bonus of up to 50%
               -----
               of his current salary, payable in a manner consistent with
               Employer's practices and procedures. The amount of the bonus, if
               any, will be decided by Employer in its sole discretion and based
               on the criteria used to determine the bonus, if any, payable to
               similarly-situated executives.

          (c)  Benefits. Employee and/or his family, as the case may be, shall
               --------
               be eligible for participation in and shall receive all benefits
               under Employer's health and welfare benefit plans (including,
               without limitation, medical, prescription, dental, disability,
               and life insurance) under the same terms and conditions
               applicable to executives at similar level of compensation and
               responsibility.

          (d)  Vacation. Employee shall receive 26 days of PTO per year.
               --------

          (e)  Relocation Expenses. Employee shall receive relocation payments
               -------------------
               not to exceed $40,000.00.

          (f)  Stock Options. Employee will receive options to purchase 60,000
               -------------
               shares of Employer stock, vesting ratably over four (4) years and
               expiring on the fifth anniversary of the grant. The vesting
               period will accelerate upon a Change In Control, as that term is
               defined by the Stock Option Agreement.

          (g)  Employer reserves the right to modify, suspend, or discontinue
               any and all of its health and welfare benefit plans, practices,
               policies, and programs at any time without recourse by Employee
               so long as such action is taken generally with respect to all
               other similarly-situated peer executives and does not single out
               Employee.

     4.   TERMINATION.
          -----------

          (a)  Death or disability. Employee's employment shall automatically
               -------------------
               terminate upon Employee's death. If Employer determines in good
               faith that a Disability of has occurred (pursuant to the
               definition of Disability set forth below), it may give Employee
               written notice of its intention to terminate Employee's
               employment. In such event, Employee's employment with Employer
               shall terminate effective on the 30th day after receipt of such
               notice by Employee, provided that, within the 30 days after
               receipt of such notice, Employee shall not have returned to
               full-time performance of his duties. For purposes of this
               Agreement, "Disability" shall mean a physical or mental
               impairment that renders Employee unable to perform the essential
               functions of his position, even with reasonable accommodation
               that does not impose an undue hardship on Employer. Employer
               reserves the right, in good faith, to make the determination of
               Disability under this Agreement based upon the

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               information supplied by Employee and/or his medical personnel, as
               well as information from medical personnel (or others) selected
               by Employer or its insurers.

          (b)  Cause. Employer may terminate Employee's employment for Cause.
               -----
               "Cause" shall mean that employer, acting in good faith based upon
               the information then known to Employer, determines that Employee
               has engaged or committed: (1) a felony that is likely to and
               which does in fact have the effect of injuring the reputation,
               business, or a business relationship of Employer; (2) an act of
               fraud or dishonesty resulting in or intended to result directly
               or indirectly in personal enrichment at the expense of Employer;
               (3) repeated refusal to perform his duties, which goes
               uncorrected for a period of thirty (30) days after written notice
               has been provided to Employee; (4) act of willful misconduct or
               gross negligence; (5) an act of unlawful discrimination,
               including sexual harassment; or (6) a violation of his duty of
               loyalty or of any fiduciary duty.

          (c)  Obligations of Employer Upon Termination.
               ----------------------------------------

                  (1)  Death or Disability. If Employee's employment is
                       -------------------
                       terminated by reason of Employee's death or Disability
                       (as that term is defined above), this Agreement shall
                       terminated without further obligation to Employee or his
                       legal representative under this Agreement, other than for
                       (a) payment of the sum of (i) Employee's annual base
                       salary through the date of termination to the extent not
                       theretofore paid and (ii) any compensation previously
                       deferred by Employee (together with any accrued interest
                       or earnings thereon) and any accrued but unused PTO (the
                       sum of the amounts described in (i) and (ii) shall
                       hereinafter be referred to as the "Accrued Obligations"),
                       which shall be paid to Employee or his estate or
                       beneficiary, as applicable, in a lump sum upon
                       termination and in a manner consistent with Employer's
                       payroll practices; and (b) payment to Employee or his
                       estate or beneficiary, as applicable, any amounts due
                       pursuant to the terms of any applicable welfare benefit
                       plans. Nothing herein shall affect Employee's rights
                       under any existing stock option agreement.

                  (2)  Cause. If Employee's employment is terminated for Cause
                       -----
                       (as that term is defined above), this Agreement shall
                       terminate without further Obligations to Employee other
                       than for the timely payment of Accrued Obligations.

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                  (3)  Other than Cause, Death, or Disability. If, within two
                       --------------------------------------
                       (2) years of the date of this Agreement, Employee's
                       employment is terminated for other than Cause, death, or
                       Disability, this Agreement shall terminate without
                       further obligations to Employee other than (a) the timely
                       payment of Accrued Obligations and (b) the continued
                       payment of his then-current base salary, less standard
                       withholdings and authorized deductions, for a period of
                       twelve (12) months following the termination of his
                       employment. During this twelve-month period, Employee
                       will use his best efforts to obtain employment or
                       consulting arrangements. Employer may offset,
                       dollar-for-dollar, any amount Employee earns from any
                       subsequent employment or consulting arrangement, less
                       relocation and other costs associated with the change of
                       employment. Employee will advise Employer in writing as
                       to his earnings.

     5.   CHANGE OF CONTROL.
          -----------------

          (a)  For purposes of this Agreement, a "Change of Control" shall mean:
               (1) any transaction or series of transactions in which any person
               or group (within the meaning of Rule 13d-5 under the Exchange Act
               and Sections 13(d) and 14(d) of the Exchange Act) becomes the
               direct or indirect "beneficial owner" (as defined in Rule 13d-3
               under the Exchange Act), by way of a stock issuance, tender
               offer, merger, consolidation, other business combination or
               otherwise, of greater than 50% of the total voting power (on a
               fully diluted basis as if all convertible securities had been
               converted and all warrants and options had been exercised)
               entitled to vote in the election of directors of Employer
               (including any transaction in which Employer becomes a wholly
               owned or majority owned subsidiary of another corporation); (2)
               any merger or consolidation or reorganization in which Employer
               does not survive; (3) any merger or consolidation in which
               Employer survives, but the shares of Employer's common stock
               outstanding immediately before such merger or consolidation
               represent 50% or less of the voting power of Employer after such
               merger or consolidation; or (4) any transaction in which more
               than 50% of Employer's assets are sold.

          (b)  For purposes of this Agreement, "Constructive Discharge" shall
               mean the occurrence of any of the following after a Change of
               Control: (1) Employee is no longer the Vice President-Controller
               and his position has been significantly downgraded; (2) the scope
               of Employee's authority, duties, and responsibilities have been
               materially diminished; or (3) there has been a material reduction
               in Employee's base salary, bonus, or benefits as in effect on the
               date of a Change of Control.

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          (c)  If Employee resigns following a Constructive Discharge following
               a Change of Control, this Agreement shall terminate without
               further obligations to Employee other than (a) the timely payment
               of Accrued Obligations and (b) the continued payment of his
               then-current base salary, less standard withholdings and
               authorized deductions, for a period of twelve (12) months
               following the termination of his employment. During this
               twelve-month period, Employee will use his best efforts to obtain
               employment or consulting arrangements. Employer may offset,
               dollar-for-dollar, any amount Employee earns from any subsequent
               employment or consulting arrangement, less relocation and other
               costs associated with the change of employment. Employee will
               advise Employer in writing as to his earnings.

     6.   INDEMNIFICATION.
          ---------------

          Employer agrees to indemnify Employee against and in respect of any
and all claims, demands in accordance with all applicable laws.

     7.   ARBITRATION.
          -----------

          Except as provided below, any controversy or claim arising out of,
relating to, or in any way connected with this Agreement, any alleged breach
thereof, or Employee's employment shall be settled by arbitration in accordance
with the rules of the National Rules for the Resolution of Employment Disputes
of the American Arbitration Association. Without limiting the general nature of
the foregoing, such claims include, but are not limited to: wage and benefit
claims; contract claims; tort claims; defamation claims; claims for employment
discrimination (statutory or nonstatutory) based on age, race, sex, national
origin, color, religion, disability (perceived, actual, or record of), medical
condition, sexual orientation, and marital status; claims for harassment; and
claims for a violation of federal, state, local, or other government law,
constitution, statute, regulation, or ordinance. The arbitrator shall apply the
appropriate federal or state law, shall have the authority to interpret this
Agreement (but does not have the power to amend, change, delete, or add any
terms), and shall have the power to determine the appropriate legal or equitable
remedy, if any. The arbitrator's decision, which must be in writing, will be
final and binding, and the arbitrator's award may be entered in any court having
jurisdiction thereof.

     8.   NON-COMPETITION.
          ---------------

          (a)  During the term of this Agreement, Employee shall not, directly
               or indirectly, either as an employee, employer, consultant,
               agent, principal, partners, stockholder, corporate officer,
               director, or in any other individual or representative capacity,
               engage or participate in any business that is in competition in
               any manner whatsoever with the business of Employer, its
               subsidiaries, or affiliates.

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          (b)  Employee agrees that for a period of one (1) year after the
               termination of his employment with Employer, he will not,
               directly or indirectly, without the prior written consent of
               Employer's Board of Directors, provide consulting services with
               or without pay, own, manage, operate, join, control, participate
               in, or be connected as a stockholder, partner, or otherwise with
               any business, individual, partnership, firm, corporation, or
               other entity that is then in competition with Employer's business
               or any subsidiary or affiliate of Employer.

          (c)  It is expressly agreed that Employer will or would suffer
               irreparable injury if Employee were to compete with the business
               of Employer or any subsidiary or affiliate of Employer in
               violation of this Agreement and that Employer would by reason of
               such competition be entitled to injunctive relief in a court of
               appropriate jurisdiction. Employee consents and stipulates to the
               entry of such injunctive relief in such a court prohibiting him
               from competing with Employer or any subsidiary or affiliate of
               Employer in violation of this Agreement.

     9.   ANTISOLICITATION.
          ----------------

          Employee promises and agrees that during the term of this Agreement,
he will not influence or attempt to influence any customers of Employer or any
of its present or future subsidiaries or affiliates, either directly or
indirectly, to divert their business to any business, individual, partnership,
firm, corporation, or other entity that is then in competition with Employer's
business or any subsidiary or affiliate of Employer.

     10.  SOLICITING EMPLOYEES.
          --------------------

          Employee promises and agrees that he will not, for a period of one (1)
year after the termination of his employment, directly or indirectly, solicit
any of Employer's employees to work for any business, individual, partnership,
firm, corporation, or other entity that is then in competition with Employer's
business or any subsidiary or affiliate of Employer.

     11.  CONFIDENTIAL INFORMATION.
          ------------------------

          (a)  Employee shall hold in a fiduciary capacity for the benefit of
               Employer all secret or confidential information, knowledge, or
               data relating to Employer or any of its affiliated companies, and
               their respective businesses, which shall have been obtained by
               Employee during his employment by Employer or any of its
               affiliated companies and which shall not be or become public
               knowledge (other than by acts by Employee or his representatives
               in violation of this Agreement). After termination of Employee's
               employment with Employer,

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               Employee shall not, without the prior written consent of
               Employer, or as may otherwise required by law or legal process,
               communicate or divulge any such information, knowledge, or data
               to anyone other than Employer or those designated by it.

          (b)  Employee agrees that all lists, materials, records, books, data,
               plans, files, reports, correspondence, and other documents
               ("Employer material") used, prepared, or made available to
               Employee shall be and remain property of Employer. Upon
               termination of employment, Employee shall immediately return all
               Employer material to Employer, and Employee shall not make or
               retain any copies thereof.

     12.  ASSIGNMENT.
          ----------

          Employee may not, without the prior written consent of Employer,
assign this Agreement or any rights or obligations hereunder. Employer may
assign this Agreement and delegate any of its rights and duties, without the
consent of Employee, to any of its subsidiaries or affiliates. In addition, upon
the sale of all or substantially all of the assets, business, and goodwill of
Employer to another corporation, or upon the merger or consolidation of Employer
with another corporation, this Agreement may be assigned to the corporation
purchasing such assets, business, and goodwill, or surviving such merger or
consolidation so long as said corporation expressly assumes in writing the
obligation of Employer herein.

     13.  INVALIDITY OF PROVISION.
          -----------------------

          In the event that any provision of this Agreement is determined to be
illegal, invalid, or void for any reason, the remaining provisions hereof shall
continue in full force and effect.

     14.  WAIVER.
          ------

          No waiver of any breach of any term or provision of this Agreement
shall be construed to be, nor shall be, a waiver of any other breach of this
Agreement. No waiver shall be binding unless in writing and signed by the party
waiving the breach.

     15.  COMPLETE AGREEMENT.
          ------------------

          This Agreement constitutes and contains the entire agreement and final
understanding concerning Employee's employment with Employer and the other
subject matters addressed herein between the parties. It is intended by the
parties as a complete and exclusive statement of the terms of their agreement.
It supersedes and replaces all prior negotiations and all agreements proposed or
otherwise, whether written or oral, concerning the subject matter hereof. Any
representation, promise, or agreement not specifically included in this
Agreement

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shall not be binding upon or enforceable against either party.

     16.  CONSTRUCTION.
          ------------

          Each party has cooperated in the drafting and preparation of this
Agreement. Hence, in any construction to be made of this Agreement, the same
shall not be construed against any party on the basis that the party was the
drafter. The captions of this Agreement are not part of the provisions hereof
and shall have no force or effect.

     17.  COMMUNICATIONS.
          --------------

          All notices, requests, demands, and other communications hereunder
shall be in writing and shall be deemed to have been duly given if delivered or
if mailed by registered or certified mail, postage prepaid, addressed to
Employer at 21250 Hawthorne Blvd., Ste. 800, Torrance, California, 90503, or
addressed to Employee at 1710 20th Street Ct. NW, Gig Harbor, Washington, 98335.

     18.  EXECUTION.
          ---------

          This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Photographic copies of such signed counterparts may
be used in lieu of the originals for any purpose.

     19.  LEGAL COUNSEL.
          -------------

          Employee and Employer recognize that this is a legally binding
contract and acknowledge and agree that they have had the opportunity to consult
with legal counsel of their choice.

          In witness whereof, the parties hereto have executed this Agreement as
of the date first written above.

      /s/ KENT THIRY                             /s/ GARY BEIL
     -----------------------------              -----------------------------
     Total Renal Care Holdings, Inc.            Gary Beil
     By: Kent Thiry
     Its: Chief Executive Officer

                                       8<PAGE>

                                                                    EXHIBIT 10.7

                                 EMPLOYMENT AGREEMENT
                                 --------------------

     This Employment Agreement (this "Agreement") is entered into effective July
19, 2000 (the "Effective Date"),  by and between Total Renal Care Holdings, Inc.
("Employer") and Charles J. McAllister, M.D., F.A.C.P. ("Employee").

     1.   TERM OF AGREEMENT.
          -----------------

          (a)  Employer hereby agrees to employ Employee, and Employee hereby
               accepts employment, upon the terms and conditions hereinafter set
               forth.

          (b)  The term of Employee's employment hereunder shall commence on the
               Effective Date and, unless either terminated as provided herein
               or modified as provided by Paragraph 5 below, shall continue
               until July 19, 2002.  During this two-year period, Employer may
               only terminate Employee's employment for death, Disability, or
               Cause, as those terms are defined below.

          (c)  If Employee continues to be employed by Employer after July 19,
               2002, and if the Triggering Event, as that term is defined in
               Paragraph 5, has not occurred, Employee's employment with
               Employer will become "at will," which means that Employee may
               terminate his employment at any time, with or without cause, and
               with or without notice, and, similarly, that Employer may
               terminate Employee's employment at any time, with or without
               cause, and with or without notice.  Similarly, at the end of any
               period of employment guaranteed because of the occurrence of the
               Triggering Event, as set forth in Paragraph 5 below, Employee
               will become an at-will employee.

     2.   DUTIES OF EMPLOYEE.
          ------------------

          (a)  Employee shall be the Chief Medical Officer of Employer and shall
               perform the duties of such office, as well as such other duties
               that may be assigned to him by the Chief Executive Officer of
               Employer or his designee.  Employee acknowledges and agrees that
               his title may be changed at any time at the Chief Executive
               Officer's discretion.

          (b)  Employee agrees to devote substantially all of his time, energy,
               and ability to the business of  Employer.  Employee shall at all
               times observe and abide by Employer's policies and procedures as
               in effect from time to time.
<PAGE>

          (c)  Unless otherwise agreed, Employee shall report to the Chief
               Executive Officer of Employer or his designee.

     3.   COMPENSATION.
          ------------

          Employer shall pay to Employee in full consideration of all services
to be rendered by Employee:

          (a)  Salary: Employer will pay to Employee a base salary of $200,000
               ------
               annually. Such salary shall be earned bi-weekly and shall be
               payable in periodic installments consistent with Employer's
               payroll schedule.  Amounts payable shall be reduced by standard
               withholdings and authorized deductions.  Employer may, in its
               discretion, increase Employee's salary.

          (b)  Bonus.  Employee shall be eligible to receive a performance bonus
               -----
               of up to $100,000, payable in a manner consistent with Employer's
               practices and procedures.  The amount of the bonus, if any, will
               be decided by the Chief Executive Officer and/or the Board of
               Directors in its sole discretion.

          (c)  Benefits.  Employee and/or his family, as the case may be, shall
               --------
               be eligible for participation in and shall receive all benefits
               under Employer's health and welfare benefit plans (including,
               without limitation, medical, prescription, dental, disability,
               and life insurance) under the same terms and conditions
               applicable to most executives at similar level of compensation
               and responsibility.

          (d)  Vacation.  Employee shall accrue paid time off ("PTO") pursuant
               --------
               to Employer's then-current policy.

          (e)  Stock Options.  Employee will receive options to purchase 160,000
               -------------
               shares of Employer stock.  Such options will have a five-year
               term and vest over a four-year period, one-quarter vesting on
               each anniversary date of the grant. The vesting period will
               accelerate upon a Change In Control, as that term is defined by
               the Stock Option Agreement.  The exercise price of the options
               shall be the closing price as reported on the New York Stock
               Exchange on the date of the grant, which will be the start date
               of Employee's employment.  The options will be reflected in a
               separate Stock Option Agreement.

          (f)  Professional and Educational Fees:  Employer will pay or
               ---------------------------------
               reimburse Employee for all reasonable costs related to his
               position as Chief Medical Officer, including necessary licensure,
               obligatory malpractice insurance, and membership in medical
               organizations, such as ACP, ASN, and ACPE.  In

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<PAGE>

               addition, Employer will pay or reimburse Employee for all
               reasonable costs related to educational activities that are
               related to Employer's business activities. Employee shall seek
               the approval of the Chief Executive Officer or his designee
               before incurring any such cost.

          (g)  Employer reserves the right to modify, suspend, or discontinue
               any and all of its health and welfare benefit plans, practices,
               policies, and programs at any time without recourse by Employee
               so long as such action is taken generally with respect to all
               other similarly-situated peer executives and does not single out
               Employee.

     4.   TERMINATION.
          -----------

          (a)  Death or disability.  Employee's employment shall automatically
               -------------------
               terminate upon Employee's death.  If Employer determines in good
               faith that a Disability of has occurred (pursuant to the
               definition of Disability set forth below), it may give Employee
               written notice of its intention to terminate Employee's
               employment.  In such event, Employee's employment with Employer
               shall terminate effective on the 30th day after receipt of such
               notice by Employee, provided that, within the 30 days after
               receipt of such notice, Employee shall not have returned to full-
               time performance of his duties.  For purposes of this Agreement,
               "Disability" shall mean a physical or mental impairment that
               renders Employee unable to perform the essential functions of his
               position, even with reasonable accommodation that does not impose
               an undue hardship on Employer.  Employer reserves the right, in
               good faith, to make the determination of Disability under this
               Agreement based upon the information supplied by Employee and/or
               his medical personnel, as well as information from medical
               personnel (or others) selected by Employer or its insurers.

          (b)  Cause.  Employer may terminate Employee's employment for Cause.
               -----
               "Cause" shall mean that employer, acting in good faith based upon
               the information then known to Employer, determines that Employee
               has engaged or committed: (1) a felony that is likely to and
               which does in fact have the effect of injuring the reputation,
               business, or a business relationship of Employer; (2) an act of
               fraud or dishonesty resulting in or intended to result directly
               or indirectly in personal enrichment at the expense of Employer;
               (3) repeated refusal or failure to perform his duties in a
               minimally satisfactory manner, which goes uncorrected for a
               period of thirty (30) days after written notice has been provided
               to Employee; (4) act of willful misconduct or gross negligence;
               (5) an act of unlawful discrimination, including sexual
               harassment; or (6) a violation of his duty of loyalty or of any
               fiduciary duty.

                                       3
<PAGE>

          (c) Obligations of Employer Upon Termination.
              ----------------------------------------

              (1)  Death or Disability. If Employee's employment is terminated
                   -------------------
                   by reason of Employee's death or Disability (as that term is
                   defined above), this Agreement shall terminated without
                   further obligation to Employee or his legal representative
                   under this Agreement, other than for (a) payment of the sum
                   of (i) Employee's annual base salary through the date of
                   termination to the extent not theretofore paid and (ii) any
                   compensation previously deferred by Employee (together with
                   any accrued interest or earnings thereon) and any accrued but
                   unused PTO (the sum of the amounts described in (i) and (ii)
                   shall hereinafter be referred to as the "Accrued
                   Obligations"), which shall be paid to Employee or his estate
                   or beneficiary, as applicable, in a lump sum upon termination
                   and in a manner consistent with Employer's payroll practices;
                   and (b) payment to Employee or his estate or beneficiary, as
                   applicable, any amounts due pursuant to the terms of any
                   applicable welfare benefit plans. Nothing herein shall affect
                   Employee's rights under any existing stock option agreement.

              (2)  Cause. If Employee's employment is terminated for Cause (as
                   -----
                   that term is defined above), this Agreement shall terminate
                   without further Obligations to Employee other than for the
                   timely payment of Accrued Obligations.

     5.   CHANGE IN MANAGEMENT.
          --------------------

          (a)  If, during the first year of Employee's employment, neither Kent
               Thiry nor David Barry is the Chief Executive Officer, Chairman of
               the Board, or the Chief Operating Officer (the "Triggering
               Event") of Employer, Employee's term of employment will be
               guaranteed for three (3) years once the Triggering Event has
               occurred.  During this three-year period, Employee's employment
               may only be terminated because of death, Disability, or Cause, as
               those terms are defined above.

          (b)  If the Triggering Event occurs during the second year of
               Employee's employment, Employee's term of employment will be
               guaranteed for two and one-half years once the Triggering Event
               has occurred.  During this two and one-half year period,
               Employee's employment may only be terminated because of death,
               Disability, or Cause, as those terms are defined above.

                                       4
<PAGE>

     6.   INDEMNIFICATION.
          ---------------

          Employer agrees to indemnify Employee against and in respect of any
and all claims, demands in accordance with all applicable laws.

     7.   ARBITRATION.
          -----------

          Except as provided below, any controversy or claim arising out of,
relating to, or in any way connected with this Agreement, any alleged breach
thereof, or Employee's employment shall be settled by arbitration in accordance
with the rules of the National Rules for the Resolution of Employment Disputes
of the American Arbitration Association.  Without limiting the general nature of
the foregoing, such claims include, but are not limited to: wage and benefit
claims; contract claims; tort claims; defamation claims; claims for employment
discrimination (statutory or nonstatutory) based on age, race, sex, national
origin, color, religion, disability (perceived, actual, or record of), medical
condition, sexual orientation, and marital status; claims for harassment; and
claims for a violation of federal, state, local, or other government law,
constitution, statute, regulation, or ordinance.  The arbitrator shall apply the
appropriate federal or state law, shall have the authority to interpret this
Agreement (but does not have the power to amend, change, delete, or add any
terms), and shall have the power to determine the appropriate legal or equitable
remedy, if any.  The arbitrator's decision, which must be in writing, will be
final and binding, and the arbitrator's award may be entered in any court having
jurisdiction thereof.  The arbitration will be held in a mutually agreeable
location in Florida.  The arbitrator shall apply Florida law.

     8.   NON-COMPETITION.
          ---------------

          Employee agrees that during the term of this Agreement and for a
period of one (1) year after the termination of his employment with Employer for
any reason, he shall not: (i) directly or indirectly, on Employee's behalf or as
an officer, director, consultant, partner, owner, stockholder, employee,
creditor, agent, trustee, or advisor of any individual, partnership or limited
liability company, corporation, independent practice association, or management
services organization, or other entity ("Person") that is in the business of, or
directly or indirectly derives any economic benefit from, providing, arranging,
offering, managing, or subcontracting dialysis services or renal care services;
or (ii) in any other capacity, own, manage, control, operate, invest,  acquire
an interest, or otherwise engage in or act for or on behalf of any Person (other
than Employer and its subsidiaries and affiliates) engaged in any activity in
the United States and those countries outside the United States in which
Employer or any of its subsidiaries or affiliates had conducted any business
during Employee's employment hereunder, where such activity is similar to or
competitive with the activities carried on by Employer or any of its
subsidiaries or affiliates.  As used herein, the term "dialysis services" or
"renal care services" includes, but shall not be limited to, all dialysis
services and nephrology-related services provided by Employer at any time during
the period of Employee's employment, including, but not limited to,
hemodialysis, acute dialysis, apheresis services, peritoneal dialysis of any
type, staff-assisted hemodialysis, home hemodialysis, dialysis-related

                                       5
<PAGE>

laboratory and pharmacy services, access-related services, Method II dialysis
supplies and services, and any other services or treatment for persons diagnosed
as having end stage renal disease ("ESRD") or pre-end stage renal disease, as
well as any dialysis services provided in an acute hospital.  To the extent such
regulations is changed or amended, the term "ESRD" shall have the same meaning
as set forth in Title 42, Code of Federal Regulations 405.2101 et seq. or any
successor thereto.  Employee acknowledges that the nature of Employer's
activities is such that competitive activities could be conducted effectively
regardless of the geographic distance between Employer's place of business and
the place of any competitive business.  Notwithstanding anything herein to the
contrary, such activity shall not include the ownership of 1% or less of the
issued and outstanding stock of a public company.

          Employee agrees that the geographical limitations and duration of this
covenant not to compete is reasonable.  In particular, Employee agrees that his
position is national in scope and that he will have an impact on every location
Employer now or will conduct business.  Therefore, Employee acknowledges and
agrees that, like his position, this covenant cannot be limited to any
particular geographic region.

     9.   ANTISOLICITATION.
          ----------------

          Employee promises and agrees that during the term of this Agreement
and for a period of one (1) year from the date Employee's employment terminates
for any reason, he will not influence, attempt to influence, or otherwise cause
any customers of Employer or any of its present or future subsidiaries or
affiliates, either directly or indirectly, to divert their business to any
business, individual, partnership, firm, corporation, or other entity that is
then in competition with Employer's business or any subsidiary or affiliate of
Employer.

     10.  SOLICITING EMPLOYEES.
          --------------------

          Employee promises and agrees that he will not, for a period of one (1)
year after the termination of his employment, directly or indirectly, solicit
any of Employer's employees to work for any business, individual, partnership,
firm, corporation, or other entity that is then in competition with Employer's
business or any subsidiary or affiliate of Employer.  Employee also agrees that
during his employment and for a period of one (1) year after the termination of
his employment, directly or indirectly, hire any of Employer's employees to work
(as an employee or an independent contractor) for any business, individual,
partnership, firm, corporation, or other entity that is then in competition with
Employer's business or any subsidiary or affiliate of Employer.

     11.  CONFIDENTIAL INFORMATION.
          ------------------------

          (a)  Employee shall hold in a fiduciary capacity for the benefit of
               Employer all secret or confidential information, knowledge, or
               data relating to Employer or any of its affiliated companies, and
               their respective businesses, which shall

                                       6
<PAGE>

               have been obtained by Employee during his employment by Employer
               or any of its affiliated companies and which shall not be or
               become public knowledge (other than by acts by Employee or his
               representatives in violation of this Agreement). After
               termination of Employee's employment with Employer, Employee
               shall not, without the prior written consent of Employer, or as
               may otherwise required by law or legal process, communicate or
               divulge any such information, knowledge, or data to anyone other
               than Employer or those designated by it.

          (b)  Employee agrees that all lists, materials, records, books, data,
               plans, files, reports, correspondence, and other documents
               ("Employer material") used, prepared, or made available to
               Employee shall be and remain property of Employer.  Upon
               termination of employment, Employee shall immediately return all
               Employer material to Employer, and Employee shall not make or
               retain any copies thereof.

     12.  EQUITABLE RELIEF.
          ----------------

          Employee agrees that any violation by Employee of any covenant in
Paragraph 8, 9, 10, or 11 will or would cause Employer to suffer irreparable
injury, the exact amount of which will be difficult to ascertain.  For that
reason, Employee agrees that Employer shall be entitled, as a matter of right,
to a temporary, preliminary, and/or permanent injunction and/or other injunctive
relief, ex parte or otherwise, from any court of competent jurisdiction,
restraining any further violations by Employee.  Such injunctive relief shall be
in addition to and in no way limit any and all other remedies Employer shall
have in law and equity for the enforcement of such covenants and provisions.
Employee consents and stipulates to the entry of such injunctive relief in such
a court prohibiting him from any further violation of the covenants and
provisions of Paragraph 8, 9, 10, or 11.

     13.  ASSIGNMENT.
          ----------

          Employee may not, without the prior written consent of Employer,
assign this Agreement or any rights or obligations hereunder.  Employer may
assign this Agreement and delegate any of its rights and duties, without the
consent of Employee, to any of its subsidiaries or affiliates.  In addition,
upon the sale of all or substantially all of the assets, business, and goodwill
of Employer to another corporation, or upon the merger or consolidation of
Employer with another corporation, this Agreement may be assigned to the
corporation purchasing such assets, business, and goodwill, or surviving such
merger or consolidation so long as said corporation expressly assumes in writing
the obligation of Employer herein.

                                       7
<PAGE>

     14.  INVALIDITY OF PROVISION.
          -----------------------

          In the event that any provision of this Agreement is determined to be
illegal, invalid, or void for any reason, the remaining provisions hereof shall
continue in full force and effect.

     15.  WAIVER.
          ------

          No waiver of any breach of any term or provision of this Agreement
shall be construed to be, nor shall be, a waiver of any other breach of this
Agreement.  No waiver shall be binding unless in writing and signed by the party
waiving the breach.

     16.  COMPLETE AGREEMENT.
          ------------------

          This Agreement constitutes and contains the entire agreement and final
understanding concerning Employee's employment with Employer and the other
subject matters addressed herein between the parties.  It is intended by the
parties as a complete and exclusive statement of the terms of their agreement.
It supersedes and replaces all prior negotiations and all agreements proposed or
otherwise, whether written or oral, concerning the subject matter hereof.  Any
representation, promise, or agreement not specifically included in this
Agreement shall not be binding upon or enforceable against either party.

     17.  CONSTRUCTION.
          ------------

          Each party has cooperated in the drafting and preparation of this
Agreement.  Hence, in any construction to be made of this Agreement, the same
shall not be construed against any party on the basis that the party was the
drafter.  The captions of this Agreement are not part of the provisions hereof
and shall have no force or effect.

     18.  COMMUNICATIONS.
          --------------

          All notices, requests, demands, and other communications hereunder
shall be in writing and shall be deemed to have been duly given if delivered or
if mailed by registered or certified mail, postage prepaid, addressed to
Employer at 21250 Hawthorne Blvd., Ste. 800, Torrance, California, 90503, or
addressed to Employee at 1001 Keene Road South, Clearwater, Florida 33756.

     19.  EXECUTION.
          ---------

          This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.  Photographic copies of such signed counterparts
may be used in lieu of the originals for any purpose.

                                       8
<PAGE>

     20.  LEGAL COUNSEL.
          -------------

          Employee and Employer recognize that this is a legally binding
contract and acknowledge and agree that they have had the opportunity to consult
with legal counsel of their choice.

          In witness whereof, the parties hereto have executed this Agreement as
of the date first written above.

          /s/ Kent Thiry                      /s/ Charles J. McAllister
-------------------------------------    ---------------------------------------
   Total Renal Care Holdings, Inc.        Charles J. McAllister, M.D. F.A.C.P.
   By: Kent Thiry
   Its: Chief Executive Officer

                                       9

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