Incentive Stock Options VS. Non-Qualified Stock Options

Cam across this interesting article, I'll past the useful breakdown chart from this article to this post:
http://www.startupcompanylawyer.com/2008/03/05/whats-the-difference-between-an-iso-and-an-nso/

This is applicable to the US tax system

ISO	NSO
Tax Qualification Requirements:	* The option price must at least equal the fair market value of the stock at the time of grant. * The option cannot be transferable, except at death. * There is a $100,000 limit on the aggregate fair market value (determined at the time the option is granted) of stock which may be acquired by any employee during any calendar year (any amount exceeding the limit is treated as a NSO). * All options must be granted within 10 years of plan adoption or approval of the plan, whichever is earlier. * The options must be exercised within 10 years of grant. * The options must be exercised within three months of termination of employment (extended to one year for disability, with no time limit in the case of death).	None, but an NSO granted with an option price less than the fair market value of the stock at the time of grant will be subject to taxation on vesting and penalty taxes under Section 409A.
Who Can Receive:	Employees only	Anyone
How Taxed for Employee:	* There is no taxable income to the employee at the time of grant or timely exercise. * However, the difference between the value of the stock at exercise and the exercise price is an item of adjustment for purposes of the alternative minimum tax. * Gain or loss when the stock is later sold is long-term capital gain or loss. Gain or loss is the difference between the amount realized from the sale and the tax basis (i.e., the amount paid on exercise). * Disqualifying disposition destroys favorable tax treatment.	* The difference between the value of the stock at exercise and the exercise price is ordinary income. * The income recognized on exercise is subject to income tax withholding and to employment taxes. * When the stock is later sold, the gain or loss is capital gain or loss (calculated as the difference between the sales price and tax basis, which is the sum of the exercise price and the income recognized at exercise).