Guam Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. is an executive compensation program designed specifically for nonemployee directors serving on the board of National Surgery Centers, Inc. This comprehensive plan provides an opportunity for nonemployee directors to own company stock while aligning their interests with the long-term success and growth of National Surgery Centers, Inc. The Guam Nonemployee Directors Stock Option Plan grants nonemployee directors the right to purchase a specific number of company shares at a predetermined exercise price within a specific time frame. By awarding stock options, National Surgery Centers, Inc. aims to incentivize nonemployee directors to contribute their expertise, experience, and insights towards enhancing the company's corporate governance and overall performance. One of the key benefits of the Guam Nonemployee Directors Stock Option Plan is that it allows nonemployee directors to share in the company's success as the stock price appreciates over time. This approach fosters a sense of ownership and commitment among nonemployee directors, as they have a direct stake in the company's performance and profitability. The Guam Nonemployee Directors Stock Option Plan may have different types or variations, such as: 1. General Stock Option Plan: This type typically awards nonemployee directors with stock options that vest over a certain period and have a specified term for exercise. The exercise price is usually set at fair market value on the date of the grant. 2. Performance-based Stock Option Plan: In this type of plan, the stock options granted to nonemployee directors become exercisable based on achieving specific performance goals or milestones. By linking stock options to performance, National Surgery Centers, Inc. seeks to drive directors' performance and create shareholder value. 3. Restricted Stock Option Plan: This variation provides nonemployee directors with restricted stock units that have certain restrictions or conditions attached to them. For example, the stock units may not vest fully until the director completes a certain number of years on the board. 4. Long-term Stock Option Plan: This type of plan is designed to encourage nonemployee directors to stay with the company for an extended period. The stock options granted under this plan may have a longer vesting period, enabling nonemployee directors to realize greater value by staying committed to National Surgery Centers, Inc. for the long term. National Surgery Centers, Inc. believes that the Guam Nonemployee Directors Stock Option Plan is a valuable tool in attracting, motivating, and retaining high-caliber nonemployee directors who play a vital role in shaping the company's strategic direction and corporate governance. It provides a means to align the interests of the directors with those of the shareholders and fosters a commitment to the long-term success of National Surgery Centers, Inc. while allowing nonemployee directors to share in the company's financial achievements.