Document:

<PAGE>
                                                                    EXHIBIT 10.5

                              CONTRACT OF GUARANTY

BANK OF NORTH GEORGIA
Atlanta, Georgia                                              September 30, 2002

         For and in consideration of the sum of $1.00 in hand paid by Bank (as
that term is hereinafter defined) to SUNLINK HEALTH SYSTEMS, INC., a corporation
of the State of Ohio (the "UNDERSIGNED"), the sufficiency and receipt of which
are hereby acknowledged by Undersigned, and in consideration of any loan or
other financial accommodation heretofore, contemporaneously, or hereafter at any
time made or granted to SUNLINK HEALTHCARE CORP., SOUTHERN HEALTH CORPORATION,
and SOUTHERN HEALTH CORPORATION OF JASPER, INC., jointly or severally, (herein
collectively called "BORROWER") by BANK OF NORTH GEORGIA, a state chartered
bank, (herein, together with its successors and assigns, called "BANK"), and for
other good and valuable consideration, Undersigned agrees that:

         Undersigned hereby unconditionally guarantees the full and prompt
payment when due, whether by acceleration or otherwise, and at all times
hereafter, of: (a) the indebtedness evidenced by that certain Note of even date,
in the principal amount of Six Million Dollars ($6,000,000), plus the interest
specified therein, executed by Borrower, payable to the order of Bank (herein
called the "NOTE"); (b) any and all extensions, renewals, or modifications of
said Note, and all out-of-pocket expenses including without limitation
reasonable attorneys' fees and expenses, incurred in the collection thereof, the
enforcement of rights under any security therefor and the enforcement hereof, in
any such case, after and during the continuance of any default in payment
thereof; (c) any indebtedness resulting from advances made on Borrower's behalf
by Bank under the Loan Documents to protect or preserve the priority and
security of its lien; and (d) all other charges and expenses, including, without
limitation, late charges and the payment of all costs, expenses, charges and
other expenditures required to be made by Borrower, or which Borrower agrees to
make, under the terms and provisions of any Loan Documents (as that term is
hereinafter defined). All such items (a), (b), (c) and (d) are herein called the
"LIABILITIES".

         Undersigned further unconditionally guarantees the faithful, prompt and
complete compliance by Borrower with all terms, conditions, covenants,
agreements and undertakings of Borrower (herein collectively called the
"OBLIGATIONS") under the Note, under all deeds to secure debt and security
agreements securing payment of the Liabilities (collectively called the
"SECURITY Deed"), and under all other agreements, documents and instruments
executed by Borrower or any one of them in favor of Bank in connection with the
Liabilities (the Note, Security Deed and all such other agreements, documents
and instruments evidencing or securing the Liabilities or Obligations being
herein collectively called the "LOAN DOCUMENTS").

         In the event (a) Borrower fails to perform the Obligations or pay the
Liabilities or (b) Borrower pays the Liabilities and, thereafter, Bank is
required to refund all or any part of such payment(s) to Borrower or any other
party of entity, Undersigned shall, upon the written demand

<PAGE>

of Bank, promptly and with due diligence pay all Liabilities and perform and
satisfy for the benefit of Bank all Obligations.

         Undersigned expressly represents and acknowledges that the making of
the loan evidenced by the Note and other financial accommodations by Bank to
Borrower are and will be of direct interest, benefit and advantage to
Undersigned.

         The undertakings of Undersigned hereunder are independent of the
Liabilities and Obligations of Borrower, and a separate action or actions for
payment, damages or performance may be brought and prosecuted against
Undersigned whether or not an action is brought against Borrower or the security
for the Obligations, and whether or not Borrower be joined in any such action or
actions, and whether or not notice be given or demand be made upon Borrower.

         Any amount received by Bank from whatever source and applied by it
toward the payment of the Liabilities shall be applied in such order of
application as Bank may from time to time elect. If a claim is ever made upon
Bank for repayment or recovery of any amount or amounts received by Bank in
payment of any of the Liabilities or Obligations and Bank repays all or part of
said amount by reason of (a) any judgment, decree or order of any court or
administrative body having jurisdiction over Bank of any of its property, or (b)
any settlement or compromise of any such claim effected by Bank with any such
claimant (including Borrower), then in such event Undersigned agrees that any
such judgment, decree, order, settlement or compromise shall be binding upon
Undersigned, notwithstanding any revocation hereof or the cancellation of the
Note or any other instrument evidencing any of the Liabilities or Obligations,
and Undersigned shall be and remain obligated to Bank hereunder for the amount
so repaid or recovered to the same extent as if such amount had never originally
been received by Bank. If Bank shall settle or compromise any such claim in
excess of $250,000.00 without approval of the undersigned, which approval shall
not be unreasonably withheld or delayed, the Undersigned shall be released from
liability hereunder in respect of the amount of any such settlement or
compromise.

         Bank may, from time to time, without notice to Undersigned, and without
affecting, diminishing or releasing the liability of Undersigned, (a) retain or
obtain and perfect by possession a security interest in any property to secure
any of the Liabilities or any Obligations hereunder, (b) retain or obtain the
primary or secondary liability of any party or parties, in addition to
Undersigned, with respect to any of the Liabilities or Obligations, (c) extend
or renew for any period (whether or not longer than the original period and on
more than one occasion), alter or exchange any of the Liabilities or Obligations
or decrease the indebtedness of Borrower, (d) release or compromise any
undertaking of Undersigned hereunder or any undertaking of any other party or
parties primarily or secondarily liable on any of the Liabilities or
Obligations, (e) release its security interest, if any, in all or any property
securing any of the Liabilities or any Obligations hereunder and permit any
substitution or exchange for any such property (but shall not be obligated to
obtain any substitution or exchange), (f) resort to Undersigned for payment of
any of the Liabilities, or any portion thereof, and the performance of the
Obligations or any of them, whether or not Bank shall have resorted to any
property securing any of the undertakings hereunder or shall have proceeded
against Undersigned or any other party primarily or secondarily liable on any of
the Liabilities or Obligations, and (g) alter, extend, change, modify,

                                      -2-

<PAGE>

release or cancel any covenant, agreement or provision contained in any or all
of the Loan Documents.

         Undersigned hereby expressly waives: (a) notice of the acceptance of
this Guaranty, (b) notice of the existence or creation of any of the Loan
Documents or all or any of the Liabilities or Obligations, (c) presentment,
demand, notice of dishonor, protest, and all other notice whatever, (d) all
diligence on the part of Bank in collection or protection of, or realization
upon, any security for any of the Liabilities or Obligations or in enforcing any
remedy available to it under any of the Loan Documents, and (e) the provisions
of Section 10-7-24 of the Official Code of Georgia Annotated.

         Bank may, without notice of any kind, sell, assign or transfer all or
any of the Liabilities and Obligations, and in such event each and every
immediate and successive assignee, transferee, or holder of all or any of the
Liabilities and Obligations, shall have the right to enforce this Guaranty, by
suit or otherwise, for the benefit of such assignee, transferee or holder, as
fully as if such assignee, transferee or holder were herein by name specifically
given such rights, powers and benefits. No such sale, assignment or transfer
shall be made to any other hospital, company or entity providing healthcare
services to the public. Bank shall have an unimpaired right, prior and superior
to that of any such assignee, transferee or holder, to enforce this Guaranty for
the benefit of Bank, as to so much of the Liabilities and Obligations as it has
not sold, assigned or transferred. Bank shall have the right to deliver, under
and subject to the confidentiality provisions hereof and of the Loan Documents,
to any prospective assignee or transferee of the Liabilities and obligations all
information and material in Bank's files concerning Undersigned, including
financial statements of the Undersigned.

         Undersigned and Bank agree certain loan related data (including,
without limitation, confidential information, documents, applications and
reports) may be transmitted electronically, including over the Internet. This
data may be transmitted to, received from or circulated among Borrower,
Undersigned and Bank and among officers, employees, agents and representatives
of Borrower, Undersigned and permitted (pursuant to the preceding paragraph)
assignees or transferees of the Bank or Borrower. Both Undersigned and Bank
acknowledge and agree that (a) there are risks associated with the use of
electronic transmission and that neither Bank nor Undersigned controls the
method of transmittal or service providers, (b) neither Bank nor Undersigned has
any obligation or responsibility whatsoever and assumes no duty or obligation to
the other for the security, receipt or third party interception of such
transmissions and (c) each of Undersigned and Bank will release the other from
any claim, damage or loss, including those arising in whole or part from either
party's strict liability or sole, comparative or contributory negligence, which
are related to the electronic transmittal of data, subject, however, in all
cases to the parties' obligations, if any, under mandatory provisions of
applicable law, including, without limitation, the Health Insurance Portability
and Accountability Act of 1996.

         No delay or failure on the part of Bank in the exercise of any right or
remedy shall operate as a waiver thereof, and no single or partial exercise by
Bank of any right or remedy herein shall preclude other or further exercise
thereof or the exercise of any other right or remedy whether contained herein or
in the Note, or any of the other Loan Documents. No action of Bank permitted
hereunder shall in any way impair or affect this Guaranty. No right or power of

                                      -3-

<PAGE>

Borrower or anyone else to assert any claim or defense as to the invalidity or
unenforceability of any of the Loan Documents or of the Liabilities or
Obligations shall impair or affect the undertakings of Undersigned hereunder.
Undersigned agrees that it shall have no right of subrogation, reimbursement or
indemnity whatsoever and no right of recourse to or with respect to any assets
or property of Borrower or to any collateral for the Liabilities and Obligations
except as provided in the immediately following sentence and then only until
payment in full to Bank of the Liabilities and Obligations. Upon and to the
extent of payment hereunder by Guarantor of any of the Liabilities or
performance by Guarantor of any of the Obligations, Guarantor shall be
subrogated, on a basis subject to and subordinate to the rights of Bank until
Bank shall be paid in full all amounts owing to it under the Loan Documents, to
all rights of Bank under the Loan Documents, including without limitation, in
and to all collateral held by Bank for payment or performance of the Liabilities
and Obligations.

         It is fully understood that until (a) all of the Obligations then due
are performed and (b) all of the Liabilities are paid, and not subject to refund
or disgorgement, Undersigned's undertakings hereunder shall not be released or
altered, in whole or in part, by any action, occurrence or thing which might,
but for this provision of this Guaranty, be deemed a permanent or temporary,
legal or equitable discharge or stay with respect to a surety or guarantor, or
by reason of any waiver, extension, modification, forbearance or delay or other
act or omission of Bank or its failure to proceed promptly or otherwise, or by
reason of any action taken or omitted by Bank, whether or not such action or
failure to act varies or increases the risk of, or affects the rights or
remedies of, Undersigned, or by reason of any further dealings among Borrower,
Bank and any other guarantor, surety or other party, and Undersigned hereby
expressly waives and surrenders any defense to the performance of the
undertakings of Undersigned hereunder based upon any of the foregoing acts,
omissions, occurrences, things, agreements or waivers or any of them; it being
the purpose and intent of the parties hereto that the covenants, agreements and
all undertakings hereunder are absolute, unconditional and irrevocable under any
and all circumstances.

         If, for any reason whatsoever, Borrower is now or hereafter becomes
indebted to Undersigned, such indebtedness and interest thereon and all liens,
security interests and rights now or hereafter existing with respect to the
property of Borrower securing the same shall (exclusive of charges for services
rendered), at all times, be subordinate in all respects to the Liabilities,
Obligations and to all liens, security interests and rights now or hereafter
existing to secure the Obligations and Liabilities. Prior to the occurrence of a
default or event of default under the Note or the occurrence of an event
permitting the Bank to declare the total unpaid balance of the Note to be due
and payable, the Undersigned is entitled to enforce or receive payment, directly
or indirectly, of any and all such indebtedness of Borrower to Undersigned.

         The Undersigned covenants and agrees unto Bank to deliver annual
audited consolidated financial statements of the Undersigned and its
subsidiaries, including Borrower, within ninety (90) days after the end of each
fiscal year of Undersigned. Undersigned represents and warrants unto Bank that,
to Undersigned's best knowledge and belief, no event or fact has occurred which
would result in a material adverse change in its consolidated financial
condition as reflected in the last financial statements delivered to Bank.

                                      -4-

<PAGE>

         This is a continuing guaranty and shall remain in full force and effect
as to Undersigned.

         Any notice, demand, request or other communication required or
permitted hereunder shall be in writing, and shall be deemed to have been duly
given or made if either delivered personally to the addressee or mailed by
certified or registered mail addressed to the last known address of the
addressee.

         This Guaranty shall inure to the benefit of Bank, its successors and
assigns, and shall bind Undersigned and the heirs, legal representatives,
successors and assigns of Undersigned.

         This Guaranty does not supersede any other guaranty, or any other
agreement, executed and delivered by Undersigned in favor of Bank.

         The books and records of Bank showing the account between it and
Borrower shall be admissible in any action or proceeding, shall be binding upon
Undersigned for the purpose of establishing the items therein set forth, and
shall constitute prima facie proof thereof.

         As additional consideration to Bank, Undersigned hereby agrees to
provide the opportunity to Bank to bid on the merchant card servicing business
of all of the current and future hospitals in which Undersigned has a legal or
beneficial interest.

         This Guaranty shall be construed in accordance with the laws of the
State of Georgia, and such laws shall govern the interpretation, construction
and enforcement hereof. Undersigned hereby irrevocably submits generally and
unconditionally for Undersigned and in respect of Undersigned's property to the
nonexclusive jurisdiction and venue of the Superior Court of Fulton County,
Georgia and the United States District Court for the Northern District of
Georgia, over any suit, action or proceeding arising out of or relating to this
Guaranty, or the Obligations of the Liabilities. Undersigned hereby irrevocably
waives, to the fullest extent permitted by law, any objection that Undersigned
may now or hereafter have to the laying of venue in any such court and any claim
that any such court is an inconvenient forum. Undersigned hereby agrees and
consents that, in addition to any methods of service of process provided for
under applicable law, all service of process in any such suit, action or
proceeding may be made by certified or registered mail, return receipt
requested, directed to Undersigned at 900 Circle 75 Parkway, Suite 1300,
Atlanta, Georgia 30339, unless written notice of a subsequent address is
received by Bank from Undersigned. Nothing herein shall affect the right of Bank
to serve process in any manner permitted by law or limit the right of Bank to
bring proceedings against Undersigned in any other court or jurisdiction.

         Wherever possible each provision of this Guaranty shall be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this Guaranty shall be prohibited by or invalid under such law,
such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Guaranty. With respect to any interest demanded
from Undersigned based upon the Loan Documents, such interest shall be limited
to the lesser of the rate specified in the Loan Documents or the highest
applicable rate deemed proper by law.

                                      -5-

<PAGE>

         Any controversy or claim between or among the parties hereto including
but not limited to those arising out of or relating to this Guaranty or any
related agreements or instruments, including any claim based on or arising from
an alleged tort, shall be determined by binding arbitration in accordance with
the Federal Arbitration Act (or if not applicable, the applicable state law),
the Rules of Practice and Procedure for the Arbitration of Commercial Disputes
of Endispute, Inc., doing business as J.A.M.S./Endispute ("J.A.M.S."), as
amended from time to time, and the "Special Rules" set forth below. In the event
of any inconsistency, the Special Rules shall control. Judgment upon any
arbitration award may be entered in any court having jurisdiction. Any party to
this Guaranty may bring an action, including a summary or expedited proceeding,
to compel arbitration of any controversy or claim to which this agreement
applies in any court having jurisdiction over such action.

         The arbitration shall be conducted in the City of Atlanta, Georgia and
administered by J.A.M.S. who will appoint an arbitrator; if J.A.M.S. is unable
or legally precluded from administering the arbitration, then the American
Arbitration Association will serve. All arbitration hearings will be commenced
within ninety (90) days of the demand for arbitration; further, the arbitrator
shall only, upon a showing of cause, be permitted to extend the commencement of
such hearing for up to an additional sixty (60) days.

         Nothing in this Guaranty shall be deemed to (i) limit the applicability
of any otherwise applicable statutes of limitation or repose and any waivers
contained in this Guaranty; or (ii) be a waiver by Bank of the protection
afforded to it by 12 U.S.C. Sec. 91 or any substantially equivalent state law;
or (iii) limit the right of Bank (A) to exercise self help remedies such as (but
not limited to) setoff, or (B) to foreclose against any real or personal
property collateral, or (C) to obtain from a court provisional or ancillary
remedies such as (but not limited to) injunctive relief or the appointment of a
receiver. Bank may exercise such self help rights, foreclose upon such property,
or obtain such provisional or ancillary remedies before, during or after the
pendency of any arbitration proceeding brought pursuant to this Guaranty. At
Bank's option, foreclosure under a deed to secure debt or mortgage may be
accomplished by any of the following: the exercise of a power of sale under the
deed to secure debt or mortgage, or by judicial sale under the deed to secure
debt or mortgage, or by judicial foreclosure. Neither the exercise of self help
remedies nor the institution or maintenance of an action for foreclosure or
provisional or ancillary remedies shall constitute a waiver of the right of any
party, including the claimant in any such action, to arbitrate the merits of the
controversy or claim occasioning resort to such remedies.

         No provision in the Loan Documents regarding submission to jurisdiction
and/or venue in any court is intended or shall be construed to be in derogation
of the provisions in any Loan Document for arbitration of any controversy or
claim.

                                      -6-

<PAGE>

         IN WITNESS WHEREOF, Undersigned has caused this Contract of Guaranty to
be executed by its duly authorized officer and its seal affixed hereto as of the
day and year first above written, this 30th day of September, 2002.

                                       SUNLINK HEALTH SYSTEMS, INC.

                                       By: /s/ Robert M. Thornton, Jr.
                                          --------------------------------------
                                       Printed Name: Robert M. Thornton, Jr.
                                       Title: CEO

                                       Attest:
                                              ----------------------------------
                                       Printed Name:
                                       Title:

                                                    [CORPORATE SEAL]

                                      -7-<PAGE>
                                                                   EXHIBIT 10.62

                                                [OFFICERS/EMPLOYEES/CONSULTANTS]

                             RENAL CARE GROUP, INC.

                      NON-QUALIFIED STOCK OPTION AGREEMENT
                                   (1999 PLAN)

                           ---------------------------

         THIS AGREEMENT is made as of the Date of Grant, by RENAL CARE GROUP,
INC., a corporation organized and existing under the laws of the State of
Delaware (the "Company"), to ___________________ (the "Optionee").

         Upon and subject to the Additional Terms and Conditions attached hereto
and incorporated herein by reference as part of this Agreement, the Company
hereby awards as of the Date of Grant to Optionee an option (the "Option"), as
described below, to purchase the Option Shares.

         A.       DATE OF GRANT:

         B.       TYPE OF OPTION:   Non-Qualified Stock Option.

         C.       EXERCISE PRICE PER SHARE:

         D.       OPTION SHARES: __________ shares of the Company's Common
                  Stock, $.01 par value.

         E.       VESTING SCHEDULE:

                  The Vesting Schedule shall be as follows:

<TABLE>
<CAPTION>
                       Schedule           Percentage of Option Shares Vested
                       --------           ----------------------------------
                  <S>                     <C>

</TABLE>

<PAGE>

                                                [OFFICERS/EMPLOYEES/CONSULTANTS]

         F.       EXPIRATION DATE: This Option may be exercised at any time
                  after the Date of Grant through 5:00 p.m., Nashville,
                  Tennessee time, on the 10th anniversary of the Date of Grant,
                  provided that this Option may be exercised as to no more than
                  the vested Option Shares, determined pursuant to the Vesting
                  Schedule or as modified as provided herein.

         IN WITNESS WHEREOF, the Company has executed this Agreement the _______
day of __________, _________.

                                       RENAL CARE GROUP, INC.

                                       By:
                                          --------------------------------------

ATTEST:

--------------------------------------

                                          OPTIONEE:

                                          --------------------------------------

WITNESS:

--------------------------------------

                                       2
<PAGE>

                                                [OFFICERS/EMPLOYEES/CONSULTANTS]

                         ADDITIONAL TERMS AND CONDITIONS
                             RENAL CARE GROUP, INC.
                      NON-QUALIFIED STOCK OPTION AGREEMENT
                              FOR _________________

         1.       Exercise of Option. This Option may be exercised in whole or
in part, but in no less than one hundred (100) share lots, by written notice, in
substantially the form as Exhibit 1 hereto, directed to the Secretary of the
Company at its principal place of business, accompanied by payment of the
Exercise Price for the number of shares purchased. Payment shall be made in
cash, by check, or in shares of Common Stock already held by the Optionee prior
to the exercise of the Option. In the event that all or part of the Exercise
Price is paid in shares of Common Stock, the value of such shares shall be equal
to the Fair Market Value of such shares on the date of exercise of the Option,
and the Optionee shall deliver to the Company a certificate or certificates for
such shares.

         2.       Issuance of Option Shares. Upon a valid exercise of this
Option, the Company shall, or shall direct its transfer agent to, make delivery
of the Option Shares as soon as reasonably possible; provided, however, that the
Company shall not be required to issue or deliver any certificates for Option
Shares pursuant to this Option prior to (a) the completion of any registration
or qualification of such shares under any federal or state law, or any ruling or
regulation of any governmental body which the Board shall, in its sole
discretion, determine to be necessary or advisable, and/or (b) the Optionee
making at the time of exercise any reasonable representations and warranties
requested by the Company in order to qualify the issuance of the Option Shares
for exemptions from registration under state or federal securities laws. The
Option Shares issued on the exercise of this Option, when paid for as herein
provided, will be fully paid and non-assessable.

         3.       Termination of Employment or Death.

                  (a)      In the event of a termination of Optionee's
employment or consulting services for any reason (other than a termination of an
Optionee employee by his or her death or disability), (i) except as provided in
clause (ii) of this sentence this Option shall terminate as of the day of notice
of such termination by either party, but in no event later than the Expiration
Date, and (ii) any unexercised portion of this Option which is otherwise
exercisable on the date of termination may be exercised by Optionee at any time
within three (3) months following the date of such termination, unless Optionee
dies during such three (3) month period, but in no event later than the
Expiration Date. If Optionee is an employee, whether military, government or
other service by Optionee or other leave of absence granted to Optionee shall
constitute such a termination shall be determined in each case by the Board at
its discretion, and any determination by the Board shall be final and
conclusive. If the Board determines that such absence does not constitute such a
termination, however, Optionee may exercise his or her option only with the
consent of the Board.

                                       3
<PAGE>

                                                [OFFICERS/EMPLOYEES/CONSULTANTS]

                  (b)      If Optionee is an employee, upon termination of
Optionee's employment with the Company (including its subsidiaries) as result of
a permanent disability (as defined by Section 22(e)(3) of the Code), (i) except
as provided in clause (ii) of this sentence, this Option shall terminate and be
unexercisable on the date of such termination, but in no event later than the
Expiration Date, and (ii) any unexercised portion of this Option which is
otherwise exercisable on the date of such termination may be exercised by
Optionee at any time within six (6) months following the date of such
termination, unless Optionee dies during such six (6) month period, but in no
event later than the Expiration Date.

                  (c)      If Optionee is an employee, upon termination of his
or her employment by the Company without Cause, if there is a written employment
agreement between Optionee and the Company, this Option shall cease to vest in
accordance with the Vesting Schedule regardless of any salary continuation
specified by such employment agreement as a result of such termination. Upon
termination of his or her employment with the Company, (i) except as provided in
clause (ii) of this sentence, this Option shall terminate and be unexercisable
as to unvested options on the date of termination, but in no event later than
the Expiration Date, and (ii) any unexercised portion of this Option which is
otherwise exercisable as of such termination date may be exercised by Optionee
at any time within three (3) months following such termination date, unless
Optionee dies during such three (3) month period such option may be exercised
pursuant to subparagraph (d) below, but in no event later than the Expiration
Date. If there is no written employment agreement between Optionee and the
Company, upon termination of his or her employment by the Company without Cause
any unexercised portion of this Option shall terminate in accordance with
Section 3(a) above, but in no event later than the Expiration Date.

                  (d)      If Optionee dies, (i) except as provided in clause
(ii) of this sentence, this Option shall terminate and be unexercisable on the
date of death, and (ii) any unexercised portion of this Option, if otherwise
exercisable at the date of death, may be exercised by his or her personal
representatives, heirs, or legatees at any time prior to the expiration of one
(1) year after the date of Optionee's death, but in no event later than the
Expiration Date.

         4.       Full Information. Optionee represents that he or she is
familiar with the business and affairs of the Company and realizes that the
receipt of the Option and Option Shares is a speculative investment and that any
possible profit therefrom is uncertain. Optionee further represents that he or
she has had the opportunity to ask questions of and receive answers from the
Company and any person acting on its behalf and to obtain all information
available with respect to the Company and its affairs, and has received all
information and data with respect to the Company that he or she has requested
and which he or she has deemed relevant in connection with his or her receipt of
the Option and the Option Shares subject to the Option.

         5.       No Rights in Option Stock. Optionee shall have no rights as a
stockholder with respect to any of the Option Shares prior to the date of
issuance to the Optionee of a certificate or certificates for such shares.
Optionee shall have no rights with respect to such shares not expressly
conferred by this Agreement.

                                       4
<PAGE>

                                                [OFFICERS/EMPLOYEES/CONSULTANTS]

         6.       Stock Reserved. The Company shall at all times during the term
of this Agreement reserve and keep available such number of shares of the Common
Stock as will be sufficient to satisfy the requirements of this Agreement, and
shall pay all original issue taxes on the exercise of this Option, and all other
fees and expenses necessarily incurred by the Company in connection therewith.

         7.       Nonassignability. This Option shall not be encumbered or
transferred in whole or in part except by will or the laws of descent and
distribution and is exercisable during the lifetime of the Optionee only by the
Optionee.

         8.       No Employment. This Agreement shall not give Optionee a right
to employment by, or membership on the board of directors of, the Company or its
subsidiaries.

         9.       Non-Qualified Option. It is the intent of the parties hereto
that this Option be a non-qualified stock option and subject to all of the
applicable provisions of the Internal Revenue Code of 1986, as amended. The
Company recognizes that the Optionee may be subject to restrictions regarding
his or her right to trade Common Stock under applicable securities laws.
Accordingly, the Optionee may want to consider making an election to be taxed
upon exercise of this Option under Section 83(b) of the Code. The Optionee shall
have sole discretion to make such an election and shall be solely responsible
for complying with the Code and all relevant rules and regulations in connection
with such election. The Optionee shall provide written notice to the Company of
such election immediately after making such election.

         10.      Share Adjustments. If the Company's outstanding shares of
Common Stock are increased or decreased or changed into or exchanged for a
different number or kind of shares or other securities of the Company by reason
of any recapitalization, reclassification, stock split, combination of shares,
stock dividend, or transaction having similar effect, the Board shall
proportionately and appropriately adjust the number and kind of shares that are
subject to this Option and the Exercise Price Per Share, without any change in
the aggregate price to be paid therefor upon exercise of this Option.

                                       5
<PAGE>

                                                [OFFICERS/EMPLOYEES/CONSULTANTS]

         11.      Changes in Control.

                  (a)      Change in Control. Subject to Section 12, in the
event that a Change in Control shall occur, then (i) this Option (whether vested
or not vested) shall automatically become one hundred percent (100%) vested
immediately, and (ii) no other terms, conditions, restrictions or limitations
shall be imposed upon this Option after such date, and in no circumstance shall
this Option be forfeited on or after such date.

                  (b)      Automatic Acceleration and Cash-Out. Subject to
Section 12, upon a Change in Control that results directly or indirectly in the
Common Stock (or the stock of any successor the Company received in exchange for
Common Stock) ceasing to be publicly traded on a national securities market at
any time, (i) this Option shall automatically become one hundred percent (100%)
vested immediately with respect to the Option Shares, (ii) no other terms,
conditions, restrictions or limitations shall be imposed upon this Option after
such date, and in no circumstance shall this Option be forfeited on or after
such date, and (iii) this Option shall be valued and cashed out on the basis of
the Change in Control Price.

                  (c)      Section 16 Insider. Notwithstanding anything herein
to the contrary, if the Optionee is subject to the reporting requirements of
Section 16 of the Exchange Act with respect to the Company, and on the date of
the Change in Control this Option has not been outstanding for a period of at
least six months from the Date of Grant, the Optionee shall not be paid the
consideration described in this Section 11 above until the first day next
following the end of such six-month period.

         12.      Modification, Extension and Renewal. The Board may modify,
renew or accept the surrender of this Option, including the acceleration or
waiver of any vesting or other restrictions or limitations, or the conversion of
this Option (with appropriate adjustments) to be applicable to the securities of
any successor corporation to the Company or parent of any such successor, and
the Board may authorize new options in substitution for the Option. Any
substituted, modified or converted options may bear such different or additional
terms and conditions as the Board shall deem appropriate. The determination of
the Board as to the terms of any of the foregoing may be made without regard to
whether a Change in Control has or has not occurred (or whether the Board has
determined that any event shall not be considered to be a Change in Control) and
shall be conclusive and binding notwithstanding the provisions hereof regarding
exercisability. Any fractional shares resulting from any of the foregoing
adjustments under this Section shall be disregarded and eliminated. However, no
modification of this Option shall, without the consent of the Optionee,
adversely affect the rights or obligations of the Optionee with respect to this
Option.

         13.      Administration. This Agreement shall be administered,
construed and interpreted by the Board.

         14.      Definitions.

                  "Board" means the Board of Directors of the Company.

                                       6
<PAGE>

                                                [OFFICERS/EMPLOYEES/CONSULTANTS]

                  "Change in Control" means a change in control of the Company
of a nature that would be required to be reported (assuming such event has not
been "previously reported") in response to Item 1(a) of a Current Report on Form
8-K pursuant to Section 13 or 15(d) of the Exchange Act; provided that, without
limitation, a Change in Control shall also be deemed to have occurred at such
time as:

                           (i)      any "person" within the meaning of Section
         14(d) of the Exchange Act, other than the Company, a Subsidiary, or any
         employee benefit plan(s) sponsored by the Company or any Subsidiary, is
         or has become the "beneficial owner," as defined in Rule l3d-3 under
         the Exchange Act, directly or indirectly, of 25% or more of the
         combined voting power of the outstanding securities of the Company
         ordinarily having the right to vote at the election of directors;

                           (ii)     individuals who constitute the Board
         immediately prior to any meeting of stockholders (the "Incumbent
         Board") have ceased for any reason to constitute at least a majority
         thereof after such shareholder meeting, provided that any person
         becoming a director whose election, or nomination for election by the
         Company's stockholders, was approved by a vote of at least
         three-quarters (3/4) of the directors comprising the Incumbent Board
         (either by a specific vote or by approval of the proxy statement of the
         Company in which such person is named as a nominee for director without
         objection to such nomination) shall be, for purposes of this Agreement,
         considered as though such person were a member of the Incumbent Board;

                           (iii)    upon approval by the Company's stockholders
         of a reorganization, merger, share exchange or consolidation, other
         than one with respect to which those persons who were the beneficial
         owners, immediately prior to such reorganization, merger, share
         exchange or consolidation, of outstanding securities of the Company
         ordinarily having the right to vote in the election of directors own,
         immediately after such transaction, more than 75% of the outstanding
         securities of the resulting corporation ordinarily having the right to
         vote in the election of directors; or

                           (iv)     upon approval by the Company's stockholders
         of a complete liquidation and dissolution of the Company or the sale or
         other disposition of all or substantially all of the assets of the
         Company other than to a Subsidiary.

                  Notwithstanding the occurrence of any of the foregoing, the
Board may determine, if it deems it to be in the best interest of the Company,
that an event or events otherwise constituting a Change in Control shall not be
so considered. Such determination shall be effective if it is made by the Board
prior to the occurrence of an event that otherwise would be or probably will
lead to a Change in Control or after such event if made by the Board a majority
of which is composed of directors who were members of the Board immediately
prior to the event that otherwise would be or probably will lead to a Change in
Control. Upon such determination, such event or

                                       7
<PAGE>

                                                [OFFICERS/EMPLOYEES/CONSULTANTS]

events shall not be deemed to be a Change in Control for any purposes hereunder,
including but not limited to, Section 12.

                  "Code" means the Internal Revenue Code of 1986, as amended.

                  "Common Stock" means the Common Stock, $.01 par value, of the
Company.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder.

                  "Fair Market Value" means the closing price of the shares of
Common Stock on a national securities exchange on the day on which such value is
to be determined or, if no shares were traded on such day, on the next preceding
day on which shares were traded, as reported by the National Quotation Bureau,
Inc. or other national quotation service. If the shares are not traded on an
exchange but are traded in the over-the-counter market, on the day on which such
value is to be determined or, if such "asked" price is not available, the last
sales price on such day or, if no shares were traded on such day, on the next
preceding day on which the shares were traded, as reported by the National
Association of Securities Dealers Automatic Quotation System (NASDAQ) or other
national quotation service.

                  "Subsidiary" means any corporation that qualifies as a
subsidiary of a corporation under the definition of "subsidiary corporation"
contained in Section 424(f) of the Code.

                                    * * * * *

                                       8
<PAGE>
                                                [OFFICERS/EMPLOYEES/CONSULTANTS]

                                    EXHIBIT 1

                              NOTICE OF EXERCISE OF
                            STOCK OPTION TO PURCHASE
                                 COMMON STOCK OF
                             RENAL CARE GROUP, INC.

                                            Name:
                                                 -------------------------------

                                            Address:
                                                    ----------------------------

                                            Date:
                                                 -------------------------------

Renal Care Group, Inc.
Attention:  [Secretary]
2525 West End, Suite 600
Nashville, Tennessee  37203

         Re:      Exercise of Non-Qualified Stock Option

Ladies and Gentlemen:

         Subject to acceptance hereof in writing by Renal Care Group, Inc. (the
"Company"), I hereby give at least ten days but not more than thirty (30) days
prior notice of my election to exercise options granted to me to purchase
_____________ shares of Common Stock of the Company under the Renal Care Group,
Inc. Non-Qualified Stock Option Agreement granted on ______________________,
______. The purchase shall take place as of ______________________, ______ (the
"Exercise Date").

         On or before the Exercise Date, I will pay the applicable purchase
price by delivery of a certified check for $__________ for the full purchase
price payable to the order of Renal Care Group, Inc.

         The required federal, state and local income tax withholding, if any,
on the exercise of the option shall be paid on or before the Exercise Date.

         I hereby reaffirm that the representations made in Additional Terms and
Conditions of the Agreement are true and correct as of the date of exercising
this Option.

                                       9
<PAGE>

         As soon as the stock certificate is registered in my name, please
deliver it to me at the above address.

                                    Very truly yours,

AGREED TO AND ACCEPTED:

RENAL CARE GROUP, INC.

By:
   ---------------------------------------

Title:
       -----------------------------------

Number of Shares Exercised:
                           ------------------------

Number of Shares Remaining:
                           ------------------------

Date:
     --------------------

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]