Company $Co.$ has $1,000$ employees and it decides to grant each of the employees $200$ share options as part of

its new rewards plan. The options are exercisable over $5$ years and subject only to the condition that the

company's stock price must be at least $30\%$ higher than its original issue price. Company Co$.\text{'}$s share$-$based

payments are subject to:

Non$-$market performance conditions

Service condition

Service and market performance conditions

Non$-$vesting condition