<PAGE>   1

                                                                   EXHIBIT 10.27

                                New Option Grants






                               AMN HOLDINGS, INC.
                       1999 PERFORMANCE STOCK OPTION PLAN

                       Nonqualified Stock Option Agreement

               STOCK OPTION AGREEMENT dated December 13, 2000, between AMN
HOLDINGS, INC., a Delaware corporation (the "Company"), and Steven Francis (the
"grantee").

               All words and phrases not otherwise expressly defined herein
shall have the same meanings as are ascribed to such words and phrases in the
Plan document.

               The Committee has determined that the objectives of the Plan will
be furthered by granting to the grantee an option pursuant to the Plan.

               In consideration of the foregoing and of the mutual undertakings
set forth in this Stock Option Agreement, the Company and the grantee agree as
follows:

         Section 1. Grant of Option. The Company hereby grants to the grantee a
nonqualified stock option to purchase 11,544.5 shares of Stock at a purchase
price of $287.84 per share.

         Section 2. Exercisability.

               (a) In General. Subject to Section 4 hereof, the option shall
become vested and exercisable if, and only if certain performance targets are
met, as follows:

<TABLE>
<CAPTION>
                                                    NUMBER OF SHARES AS TO WHICH
      FISCAL YEAR                 EBITDA             OPTION BECOMES EXERCISABLE
<S>                        <C>                      <C>
          2001             at least $33,310,000                  2,886.2

          2002             at least $39,865,000                  2,886.1

          2003             at least $45,856,000                  2,886.1

          2004             at least $52,745,000                  2,886.1
</TABLE>

         Any portion of the option that becomes exercisable pursuant to the
above shall become exercisable as of the date of delivery of audited financial
statements by the Company's independent auditor for the applicable Fiscal Year
(in each case, the "Fiscal Year Vesting Date"), provided that the grantee was
employed on the last day of the applicable Fiscal Year.




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                                                                               2




         (b) Change of Control Acceleration. Notwithstanding the foregoing, in
the event a Change of Control occurs prior to December 31, 2003, in which the
net proceeds actually received by HWH Capital Partners, L.P. and its affiliates
(collectively, "HWP") in the form of cash and marketable securities exceeds, on
an aggregate basis (after taking into account any prior sales by HWP of any
portion of its investment in the Company), $580.81 per share of Stock, the
portion of the option which was eligible to become vested pursuant to Section
2(a) with respect to the Fiscal Year in which a Change of Control occurs and, if
any, later Fiscal Years shall become exercisable, effective immediately prior to
such event.

         (c) Expiration of Option.

                  (i)      Generally. Subject to the provisions of this Section
                           2(c) and Section 4, the option shall terminate and
                           cease to be exercisable on December 31, 2009.

                  (ii)     Special Rule. Notwithstanding the provisions of
                           Section 2(c)(i), if the Company does not meet the
                           performance target established in Section 2(a) for a
                           Fiscal Year, that portion of the option which was
                           eligible to become vested with respect to such Fiscal
                           Year shall immediately terminate.

         Section 3. Method of Option Exercise. The option or any part thereof
may be exercised only by giving to the Company written notice of exercise in the
form prescribed by the Committee. Full payment of the purchase price shall be
made on the option exercise date by certified or official bank check or, in the
Committee's discretion (which shall not be unreasonably withheld), by personal
check (subject to collection), payable to the Company, or delivery of shares of
Stock already owned by the grantee for at least six months prior to the option
exercise date as described in Section 5.4(b)(iii) of the Plan. The grantee shall
have no right to pay the option exercise price, or to receive shares of Stock
with respect to an option exercise, prior to the option exercise date. For
purposes of this Stock Option Agreement, the "option exercise date" shall be
deemed to be the first business day immediately following the date written
notice of exercise is received by the Company.

         Section 4. Termination of Employment.

               (a) Unvested Options.

                           (i) General Rule. All unvested portions of an option
                  granted to a grantee shall terminate and no longer be
                  exercisable upon such grantee's termination of employment for
                  any reason, except to the extent that options may become
                  exercisable post-employment in accordance with Section 5.5 of
                  the Plan or may remain eligible for vesting pursuant to
                  Section 4(a)(ii) of this Agreement.

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                                                                               3



                           (ii) Termination Before Performance Verified.
                  Notwithstanding Section 4(a)(i), if a grantee terminates
                  employment after the end of a Fiscal Year, but before the
                  Fiscal Year Vesting Date, (if applicable), the portion of such
                  grantee's option that was eligible to vest upon delivery of
                  audited financial statements confirming that performance
                  targets were met for such Fiscal Year shall remain outstanding
                  and eligible for vesting until delivery of such audited
                  financial statements. Thereafter, the unvested portion of such
                  option shall immediately terminate and the treatment of the
                  vested portion of the option shall be governed by Section
                  4(b).

                  (b) Vested Options.

                           (i) Death and Disability. Unless otherwise provided
                  herein, if a grantee's employment with the Company and its
                  subsidiaries terminates by reason of death or Disability (as
                  defined in a grantee's employment agreement, if applicable, or
                  if not applicable, as defined in Section 22(e)(3) of the
                  Code), the portion, if any, of the option granted to such
                  grantee which was exercisable immediately prior to such
                  termination of employment or which becomes exercisable
                  thereafter in accordance with Section 4(a)(ii) of this
                  Agreement may be exercised by such grantee or, as the case may
                  be, by such grantee's court-appointed legal representative or,
                  in the case of the grantee's death, by the person or persons
                  to whom such option passes under the grantee's will (or, if
                  applicable, pursuant to the laws of descent and distribution)
                  until the earlier of (x) the later of (1) one year after the
                  grantee's termination by reason of death or Disability and (2)
                  with respect to any portion of the option that vests in
                  accordance with Section 4(a)(ii) of this Agreement, one year
                  after the date of delivery of audited financial statements and
                  (y) the date on which such portion of the option terminates or
                  expires in accordance with the provisions of the Plan and the
                  other provisions of this Stock Option Agreement.

                           (ii) Regular Termination; Leaves of Absence. Unless
                  otherwise provided herein, if the grantee's employment
                  terminates for reasons other than as provided in Section
                  4(b)(i), the portion, if any, of the option granted to such
                  grantee which was exercisable immediately prior to such
                  termination of employment or which becomes exercisable
                  thereafter in accordance with Section 4(a)(ii) of this
                  Agreement may be exercised by such grantee until the earlier
                  of (x) the later of (1) 90 days after the grantee's date of
                  termination and (2) with respect to any portion of the Option
                  that vests in accordance with Section 4(a)(ii) of this
                  Agreement, 90 days after the date of delivery of audited
                  financial statements, and (y) the date on which such option
                  terminates or expires in accordance with the provisions of the
                  Plan and the other provisions of this Stock Option Agreement.
                  The Committee may in its discretion determine (A) whether any
                  leave of absence (including short-term or long-term disability
                  or
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                                                                               4


                  medical leave) shall constitute a termination of employment
                  for purposes of the Plan and (B) the impact, if any, of any
                  such leave on outstanding options under the Plan.

                  (c) Right of Discharge Reserved. Nothing in the Plan or this
Stock Option Agreement shall confer upon the grantee or any other person the
right to continue in the employment of the Company or any of its subsidiaries or
affect any right which the Company or any of its subsidiaries may have to
terminate the employment of the grantee or any other person.

         Section 5. Withholding Tax Requirements. Shares of Stock deliverable to
the grantee upon exercise, pursuant to the terms of the Plan and this Stock
Option Agreement, shall be subject to income tax withholding as provided in
Section 10 of the Plan. Subject to the Committee's consent (which shall not be
unreasonably withheld), a grantee may elect to satisfy all or part of such
requirements by delivery of unrestricted shares of Stock owned by the grantee as
provided in Section 10.2 of the Plan.

         Section 6. Agreement Provisions to Prevail. This Stock Option Agreement
shall be subject to all of the terms and provisions of the Plan, which are
incorporated hereby and made a part hereof, including, without limitation, the
provisions of Section 8 of the Plan (generally relating to consents required by
securities and other laws) and Section 11 of the Plan (generally relating to the
effects of certain reorganizations and other extraordinary transactions and
providing the Committee with the ability to adjust performance targets). In the
event there is any inconsistency between the provisions of this Stock Option
Agreement and the Plan, the provisions of this Stock Option Agreement shall
govern.

         Section 7. Grantee's Acknowledgments. By entering into this Stock
Option Agreement, the grantee agrees and acknowledges that (a) he has received
and read a copy of the Plan, including Section 14.3 of the Plan (generally
relating to waivers of claims to continued exercisability of awards, damages and
severance entitlements related to non-continuation of awards), and accepts this
option upon all of the terms thereof, and (b) no member of the Committee shall
be liable for any action or determination made in good faith with respect to the
Plan or any award thereunder or under this Stock Option Agreement.

Section 8. Stockholder Restrictions.

               (a) Restrictions on Transfer of Stock Acquired by Option
Exercise.

                  (i) Limitation on Transfer. The grantee shall not sell, give,
         assign, hypothecate, pledge, encumber, grant a security interest in or
         otherwise dispose of (whether by operation of law or otherwise) (each a
         "transfer") any Stock or any right, title or interest therein or
         thereto, except in accordance with the provisions of this Agreement.
         Any attempt to transfer any Stock or any rights hereunder in violation
         of the preceding sentence shall be null and void ab initio.

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                                                                               5



                  (ii) Permitted Transfers. At any time after December 31, 2003,
         the grantee may, subject to this Section 8(a)(ii), Section 8(a)(iii)
         and Section 8(b), transfer all, but not less than all, of the Stock
         owned by the grantee to any Person other than a Person involved with
         the medical or employee staffing industry other than through the
         Company (each a "Permitted Transferee"); provided that the
         consideration for such transfer shall consist solely of cash. No such
         transfer to a Permitted Transferee shall be effective unless such
         Permitted Transferee becomes a party to a separate agreement setting
         forth substantially the same terms as this Section 8. No Permitted
         Transferee of Stock pursuant to this Section 8(a)(ii) shall thereafter
         re-transfer such Stock except in accordance with this Section 8(a)(ii)
         and Section 8(a)(iii).

                  (iii) Permitted Transfer Procedures. The grantee shall give
         notice to the Company and AMN Acquisition Corp., a Delaware corporation
         ("AMN") of its intention to make any transfer permitted under Section
         8(a)(ii) not less than thirty (30) calendar days prior to effecting
         such transfer, which notice shall state the name and address of the
         party to whom such transfer is proposed and the Stock proposed to be
         transferred.

         (b)      Proposed Voluntary Transfers by the Grantee: Right of First
                  Refusal.

                  (i) Offering Notice. If after December 31, 2003 the grantee
         has received a bona fide offer from a Person (the "Third Party
         Purchaser") to pay for cash (a "Third Party Offer") all of its Stock
         (the "Offered Stock") and the grantee desires to accept the Third Party
         Offer, then the grantee (the "Selling Stockholder") shall make an offer
         (the "Offer") to sell the Offered Stock to AMN and the Company by
         sending written notice (the "Offering Notice") to the Company and AMN,
         which notice shall state (x) the number of shares of Offered Stock and
         (y) all material terms and conditions of such proposed sale (including
         the proposed purchase price per share of Stock).

                  (ii) Offer Price. Upon receipt of the Offering Notice, AMN or
         its designee and the Company (to the extent that AMN or its designee
         does not exercise its right of first refusal for the Offered Stock)
         shall have the right, but not the obligation, to purchase collectively
         all, but not less than all, of the Offered Stock. If the Offer is
         accepted by AMN's designee, AMN shall remain responsible for such
         designee's performance hereunder. The right of first refusal shall be
         exercisable with respect to the Offered Stock (i) by AMN or its
         designee and (ii) by the Company, to the extent that AMN or its
         designee does not exercise its right of first refusal for all of the
         Offered Stock, by written notice to the Selling Stockholder (with a
         copy to the Company) within twenty (20) calendar days (in the case of
         AMN) and within thirty (30) calendar days (in the case of the Company)
         of receipt of the Offering Notice. Failure by AMN or the
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         Company to respond within the applicable Notice Period shall be
         regarded as a rejection of the Offer.

                  (iii) Sell Option. If all of the Offered Stock has not been
         acquired by AMN or its designee or the Company, the Selling
         Stockholder(s) shall have the right to sell such Stock to the Third
         Party Offeror on the terms and conditions of the Third Party Offer;
         provided, that any such sale must be consummated within 45 calendar
         days of the date of the Offering Notice; provided however, that if
         compliance with the Hart-Scott-Rodino Antitrust Improvements Act of
         1976 is necessary to consummate such sale, the 45-day period may be
         extended to the end of the waiting period thereunder (but in no event
         to more than 75 calendar days after the date of the Offering Notice).
         In the event that such sale is not consummated within such 45-day
         period (as extended if applicable) for any reason, then the
         restrictions provided for herein shall again become effective, and no
         transfer of such Offered Stock may be made thereafter by such Selling
         Stockholder(s) without again complying with this Section 8(b)(iii).

         (c) Drag-Along Right.

                  (i) Sale of the Company. In the event AMN (the "Initiating
         Seller") proposes to sell any of its Stock in one or more related
         transactions, including without limitation, a merger or consolidation
         (a "Drag-Along Sale") to a bona fide third party purchaser (the
         "Proposed Transferee") on an arm's length basis, the Initiating Seller
         shall have the right (the "Drag-Along Right") to require the grantee
         (the "Drag-Along Seller") to sell, and the Drag-Along Seller hereby
         agrees to sell, to the Proposed Transferee:

               (1) until AMN has sold (or will have sold as a result of such
sale (assuming no tag-along rights are exercised on such sale)) Stock to a third
party in an amount equal to at least 75 percent (75%) of the Stock owned by AMN
as of the date hereof (the "Threshold Event"), that number of shares of Stock
(but not less than such number of shares of Stock) which is equal to the product
of (x) the number of Shares held by the grantee and (y) a fraction (A) the
numerator of which is the number of outstanding shares of Stock proposed to be
sold by the Initiating Seller and (B) the denominator of which is the number of
shares of Stock owned by the Initiating Seller; and

               (2) from and after the Threshold Event, all, but not less than
all, of its Stock (such amount referred to in clause (1) or (2), as the case may
be, for the grantee being herein referred to as the "Drag-Along Amount").

                  (ii) Sale Notice. The Initiating Seller shall notify the
         Company, and the Company shall promptly notify the Drag-Along Seller in
         writing of such proposed Transfer (the "Sale Notice"). The Sale Notice
         shall set forth (a) the name and address of the Proposed Transferee and
         (b)
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         a copy of the written proposal pursuant to which the Drag-Along Sale
         will be effected, containing all of the material terms and conditions
         thereof, including (1) the number of shares of Stock (calculated on a
         fully diluted, as converted basis) proposed to be transferred by the
         Initiating Seller, (2) the applicable Drag-Along Amount, (3) the price
         per share of Stock to be paid, (4) the terms and conditions of payment
         offered by the Proposed Transferee, (5) whether the Initiating Seller
         has determined to exercise the Drag-Along Right, (6) in the event the
         Initiating Seller has determined to exercise the Drag-Along Right, that
         the Proposed Transferee has been informed of the Drag-Along Right
         provided for in this Section 8(c) and has agreed to purchase the
         applicable Drag-Along Amount in accordance with the terms hereof and
         (7) the date and location of and procedures for selling Stock to the
         Proposed Transferee.

                  (iii) Purchase of Drag-Along Amount. The Stock purchased from
         the Drag-Along Seller by the Proposed Transferee pursuant to this
         Section 8(c) shall be paid for at the same price per share and upon
         terms and conditions no less favorable than the terms and conditions
         applicable to the Stock to be sold by the Initiating Seller.

         (d) Stock Certificate Legend: Recording of Transfer. A copy of this
Agreement shall be filed with the Secretary of the Company and kept with the
records of the Company. Each certificate representing Stock now held or
hereafter acquired by the grantee shall, at the option of the Company, for as
long as this Section 8 is effective, bear a legend as follows:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
         SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED, SOLD, ASSIGNED,
         TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE
         ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
         SUCH ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS, OR AN OPINION
         OF COUNSEL SATISFACTORY TO THE ISSUER HEREOF THAT SUCH REGISTRATION IS
         NOT REQUIRED AS TO SUCH SALE OR OFFER.

         THE TRANSFER AND PLEDGE OF ANY OF THE SECURITIES REPRESENTED BY THIS
         CERTIFICATE IS RESTRICTED BY THE TERMS OF THIS STOCK OPTION AGREEMENT,
         DATED AS OF DECEMBER 13, 2000, AMONG THE COMPANY AND THE GRANTEE, A
         COPY OF WHICH MAY BE INSPECTED AT THE COMPANY'S PRINCIPAL OFFICE.

         (e) All Transfers in Compliance with Law and Subject to this Agreement.
Any transfer of Stock permitted or required by this Agreement must be in

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compliance with the applicable provisions of this Agreement and with federal and
state securities laws, including, without limitation, the Securities Act.

         (f) Specific Performance. The parties hereto intend that each of the
parties have the right to seek damages and/or specific performance in the event
that any other party hereto fails to perform such party's obligations hereunder.
Therefore, if any party shall institute any action or proceeding to enforce the
provisions hereof, any party against whom such action or proceeding is brought
hereby waives any claim or defense therein that the plaintiff party has an
adequate remedy at law.

         (g) Definitions. For purposes hereof, the following terms shall have
the meanings set forth below:

         "Person" means any individual, corporation, partnership, limited
liability company, firm, joint venture, association, joint stock company, trust,
unincorporated organization, governmental body or other entity.

         "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.

         "Stock" means, with respect to each Stockholder, all shares, whether
now owned or hereafter acquired, of Common Stock owned by such Stockholder.

         (h) Term. This entire Section 8 shall terminate upon the closing of a
bona fide initial public offering of Common Stock of the Company.

     Section 9. Nontransferability. No option granted to the grantee under the
Plan or this Stock Option Agreement shall be assignable or transferable by the
grantee (whether by operation of law or otherwise and whether voluntarily or
involuntarily), other than by will or by the laws of descent and distribution.
During the lifetime of the grantee, all rights granted to the grantee under the
Plan or under this Stock Option Agreement shall be exercisable only by the
grantee or the grantee's court appointed legal representative. Notwithstanding
the foregoing, with the Committee's consent, the option may be transferred to
one or more members of the grantee's immediate family or trusts all of the
beneficiaries (other than contingent beneficiaries) of which are members of the
grantee's immediate family.

Section 10. Forfeiture for Non-Compete Violation.

     (a) Non-Compete. The grantee agrees that during the term of grantee's
employment and for a period of two years thereafter (the "Coverage Period") the
grantee will not engage in, consult with, participate in, hold a position as
shareholder, director, officer, consultant, employee, partner or investor, or
otherwise assist any business entity (i) in any State of the United States of
America or (ii) in any other country in which the Company has business
activities, in either case, that is engaged in any activities which are
competitive with the business of providing healthcare or other personnel on a
temporary basis to hospitals, healthcare facilities or other entities and any

<PAGE>   9
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and all business activities reasonably related thereto in which the Company or
any of its divisions, affiliates or subsidiaries are then engaged.

         (b) Non-Solicit. The grantee agrees that during the Coverage Period, he
shall not solicit, attempt to solicit or endeavor to entice away from the
Company any person who, at any time during the Term was a traveling nurse or
other healthcare professional, employee, customer, client or supplier of the
Company.

         (c) Confidential and Proprietary Information. The grantee agrees that
he will not, at any time make use of or divulge to any other person, firm or
corporation any confidential or proprietary information concerning the business
or policies of the Company or any of its divisions, affiliates or subsidiaries.
For purposes of this Agreement, any confidential information shall constitute
any information designated as confidential or proprietary by the Company or
otherwise known by the grantee to be confidential or proprietary information
including, without limitation, customer information. Grantee acknowledges and
agrees that for purposes of this Agreement, "customer information" includes
without limitation, customer lists, all lists of professional personnel, names,
addresses, phone numbers, contact persons, preferences, pricing arrangements,
requirements and practices. Grantee's obligation under this Section 10(c) shall
not apply to any information which (i) is known publicly; (ii) is in the public
domain or hereafter enters the public domain without the fault of grantee; or
(iii) is hereafter disclosed to grantee by a third party not under an obligation
of confidence to the Company. Grantee agrees not to remove from the premises of
the Company, except as an employee of the Company in pursuit of the business of
the Company or except as specifically permitted in writing by the Company, any
document or other object containing or reflecting any such confidential or
proprietary information. Grantee recognizes that all such information, whether
developed by the grantee or by someone else, will be the sole exclusive property
of the Company. Upon termination of employment, grantee shall forthwith deliver
to the Company all such confidential or proprietary information, including
without limitation all lists of customers, pricing methods, financial
structures, correspondence, accounts, records and any other documents, computer
disks, computer programs, software, laptops, modems or property made or held by
him or under his control in relation to the business or affairs of the Company
or any of its divisions, subsidiaries or affiliates, and no copy of any such
confidential or proprietary information shall be retained by him.

         (d) Forfeiture for Violations. If the grantee shall at any time violate
the provisions of Section 10(a), (b), or (c), the grantee shall immediately
forfeit all options (whether vested or unvested) and any exercise of an option
which occurs after (or within 6 months before) any such violation shall be void
ab initio.

     Section 11. Execution of Agreement. Notwithstanding anything contained in
this Stock Option Agreement to the contrary, no option may be exercised until
the grantee has returned an executed copy of this Stock Option Agreement to the
Company.

     Section 12. Notices. Any notice to be given to the Company hereunder shall
be in writing and shall be addressed to 12235 El Camino Real, Suite 200, San
Diego,
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California 92130 or at such other address as the Company may hereafter designate
to the grantee by notice as provided herein. Any notice to be given to the
grantee hereunder shall be addressed to the grantee at the address set forth
below or at such other address as the grantee may hereafter designate to the
Company by notice as provided herein. Notices hereunder shall be deemed to have
been duly given when received by personal delivery or by registered or certified
mail to the party entitled to receive the same.

     Section 13. Reorganization Event. The option awarded hereunder may be
subject, in the Committee's discretion, to termination on account of a
Reorganization Event affecting the Company, as described in Section 17 of the
Plan.

     Section 14. Successors and Assigns. This Stock Option Agreement shall be
binding upon and inure to the benefit of the parties hereto and the successors
and assigns of the Company and, to the extent set forth in the Plan, the heirs
and personal representatives of the grantee.

     Section 15. Governing Law. This Agreement shall be governed by the laws of
the State of Delaware applicable to agreements made and to be performed entirely
within such State.

     Section 16. Modifications to Agreement. This Agreement may not be altered,
modified, changed or discharged, except by a writing signed by or on behalf of
both the Company and the grantee.

         IN WITNESS WHEREOF, the parties hereto have executed this Stock Option
Agreement as of the date and year first above written.

                                    AMN HOLDINGS, INC.


                                    By:  /s/ Diane K. Stumph
                                         ---------------------------------------
                                          Title: CFO


                                    /s/ Steven C. Francis
                                    --------------------------------------------
                                                         Grantee


                                    P.O. Box 675770
                                    Rancho Santa Fe, CA 92067
                                    --------------------------------------------
                                                (Address)