Common use of Stock Compensation Expense Clause in Contracts

Stock Compensation Expense. At completion, Envision equity awards will be converted into Newco equity awards after giving effect to the Exchange Ratio. Share-based compensation expense, following the completion of the Mergers, will reflect the fair value of the awards as of the completion date for the portion that was allocated to post-combination services. This adjustment eliminates the historical stock compensation expense of $6.6 million and $9.3 million for the year ended December 31, 2015 and the nine months ended September 30, 2016, respectively and records stock compensation expense of $12.7 million and $5.7 million related to post-combination service of converted unvested Envision equity awards for the year ended December 31, 2015 and the nine months ended September 30, 2016, respectively. In addition, 18,279 outstanding shares of restricted stock granted to AmSurg directors under the AmSurg equity plans will become fully and immediately vested upon the effective time of the Mergers. As a result, approximately $0.9 million of additional compensation expense was recognized for the year ended December 31, 2015.