An employee was granted 100 Non-qualified Stock Options with an exercise price of $10/share. The employee exercised all of the options when the FMV was $15/share. The employee subsequently sold the stock several years after exercising the option for a price of $18/share. What amount and character of income must the employee recognize and when will the employee recognize the income?

$500 of ordinary income at exercise
		$500 of ordinary income at exercise and $300 of LTCG at sale
		$800 of ordinary income at sale
		$800 of LTCG at sale