Exhibit 10.1
SECOND AMENDMENT TO EMPLOYMENT
AGREEMENT
This document is to amend the first
amendment to, as well as the Employment Agreement (the
“Agreement”) entered into as of June 15, 2000, by
and between DaVita Inc. (“Employer”) and Joseph Mello
(“Employee”). Specifically, effective December 12,
2008, the parties agree to amend the Agreement as
follows:
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1.
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Section 2.3(b) is hereby deleted in its
entirety and replaced with the following:
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“Employee must be employed by
Employer (or an affiliate) on the date any Bonus is paid to be
eligible to receive such Bonus and, if Employee is not employed by
Employer (or an affiliate) on the date any Bonus is paid for any
reason whatsoever, Employee shall not be entitled to receive such
Bonus, provided , however , that in the event
Employee dies or is terminated by Employer by reason of Disability
(as defined below), Employee (or his estate) shall be entitled to
receive, by March 15 of the calendar year following such
event, a pro rated Bonus for that portion of any year prior to such
termination (or for the whole year and a portion of a year if such
termination occurs after December 31 of any year and prior to
the date on which the Bonus for such year is paid) regardless of
whether Employee is employed on the date such Bonus is paid; and
provided further , that, in the event Employee is terminated
without Material Cause (as defined below) or resigns following
Constructive Discharge (as defined below) at any time, Employee
shall be entitled to receive a Bonus for the year in which such
termination occurs equal to the normal Bonus, if any, which he
received for the immediately preceding calendar year multiplied by
two (2), which Bonus shall be payable within five (5)
business days after the effective date of such
termination.”
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2.
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Section 3.3 is hereby deleted in its
entirety and replaced with the following:
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“ Other Termination .
Employer may terminate the employment of Employee for any reason or
for no reason at any time upon at least thirty (30)
days’ advance written notice. If Employer terminates the
employment of Employee for reasons other than for Material Cause or
Disability, or if Employee resigns within sixty (60) days
following Constructive Discharge (as defined below), Employee shall
(i) be entitled to receive the Base Salary and benefits as set
forth in Section 2.1 and Section 2.2 ,
respectively, through the effective date of such termination,
(ii) be entitled to receive the Bonus provided for in
Section 2.3(b) , (iii) be entitled to receive a
lump-sum payment payable within 90 days after the effective date of
Employee’s termination of employment equal to the Base Salary
in effect as of the date of such termination multiplied by 2;
(iv) be entitled to continue to receive during the one-year
period following the effective date of such termination (the
“Severance Period”) the employee health insurance
benefits set forth in Section 2.2 (to the extent
Employee can continue to receive such benefits under
Employer’s health insurance policies and programs in effect
at the effective time of such termination through the exercise of
his rights under COBRA, Employee shall elect to receive COBRA
benefits, and Employer shall pay Employee’s insurance
premiums for COBRA coverage during the Severance Period;
provided , however , to the extent such
benefits cannot be provided under such policies
and programs, Employer shall purchase for Employee reasonably
equivalent health insurance benefits during the Severance Period
subject to the limitation set forth below and subject to the
limitation set forth in Section 2.7 ); and (v) not
be entitled to receive any other compensation, benefits, or
payments of any kind, except as otherwise required by law or by the
terms of any benefit or retirement plan or other arrangement that
would, by its terms, apply. The foregoing notwithstanding, in the
event Employee accepts employment (as an employee or as an
independent contractor) with another employer during the Severance
Period, (x) Employee shall imm