ABC, Inc. ("ABC" or "the Company'), an SEC registrant, is a fashion retailer that sells men's and women's clothing and accessories. As an incentive to its employees, the Company established a compensation incentive plan granting 100,000 options on Jamary 15, 20X0. On that date (the grant date), ABC's stock price was $15.00 per share. The significant terms of the incentive plan are as follows: The options have a $15.00 "strike" or exercise price (the price the employee would pay to purchase a share of stock if the options vest). . For the options to vest, the following must occur: . The employee must continue to provide service to the Company throughout the entire explicit service period of five years (ie., a five-year "cliff-vesting award). a The Company must achieve annual sales of at least $20 million during the fifth year of the explicit service period. . The Company's share price must increase by at least 25 percent over the five-year explicit service period. In addition, if the Company achieves sales of at least $25 million during the fifth year of the vesting period, the strike price of the options will decrease from $15 to $10. The options expire after 10 years following the grant date. The options are classified as equity awards. Additional Facts: Assume it is probable that 100 percent of the employees receiving the awards will continue as employees for the entire five-year service period and that the five-year service period is determined to be the requisite service period. On the grant date, ABC's management determined that it is probable that the Company's sales in year 5 will be $30 million, and therefore it is probable on the grant date that sales are greater than or equal to at least $25 million, The grant-date fair value of the options assuming a strike price of $15 is $8 per option. The grant-date fair value assuming a strike price of $10 per option is $12 per option. . . . . . Question: How do the service, performance, and market conditions affect vesting of the units? Of the various conditions present in the awards which affect the vesting of the award