No. 12887. Argued October 8, 1959. Decided December 22, 1959. Benjamin C. Sigal, Washington, D.C. (Edmond F. Rovner, Washington, D.C., on the brief), for petitioner. Earle W. Putnam, Washington, D.C. (Stuart Rothman, General Counsel, Thomas J. McDermott, Associate General Counsel, Marcel Mallet-Prevost, Asst. General Counsel, Duane B. Beeson, Attorney, National Labor Relations Board, Washington, D.C., on the brief), for respondent. John G. Wayman, Pittsburgh, Pa. (W.D. Armour, Reed, Smith, Shaw McClay
(a) General rule Section 421(a) shall apply with respect to the transfer of a share of stock to an individual pursuant to his exercise of an option granted under an employee stock purchase plan (as defined in subsection (b)) if- (1) no disposition of such share is made by him within 2 years after the date of the granting of the option nor within 1 year after the transfer of such share to him; and (2) at all times during the period beginning with the date of the granting of the option and ending on