(1) The option is granted pursuant to a plan that specifies the number of shares to be issued and the employees or class of employees to receive the option. The plan must be approved by the stockholders of the corporation within 12 months before or after the date the plan is adopted;
(2) The option is granted within 10 years of the date the plan is adopted or approved by the shareholders, whichever occurs first;
(3) The option must, by its terms, be exercisable within 10 years of the date it is granted;