Share-based Payments F29-21b

The 5 criteria to be a non-compensatory stock purchase plan.

1. All employees participate.
2. Option period limited to reasonable time, usually within one month.
3. Discount below market price limited to reasonable amount. Should be ≤ 5% of market price.
4. Purchase price must be based on the market price.
5. Employee have the option to cancel before purchase, and obtain a full refund.