EMPLOYEE STOCK OPTIONS GRANTED BY PARENT OR SUBSIDIARY CORPORATION.

SEC. 25. EMPLOYEE STOCK OPTIONS GRANTED BY PARENT OR SUBSIDIARY CORPORATION. Section 421 (a) (relating to employee stock options) is amended by adding at the end thereof the following new sentence: “In applying paragraphs (2) and (3) of subsection (d) for purposes of the preceding sentence, there shall be substituted for the term ‘employer corporation’ wherever it appears in such paragraphs the term ‘grantor corporation’, or the term ‘corporation issuing or assuming a stock option in a transaction to which subsection (g) is applicable’, as the case may be.”