SECTION 640-1

Payment for subscribed shares or payment for shares acquired for a free allotment shall be made by a mandatory deduction, up to the amount of shares to be allotted, on the portion of profits of one or more fiscal years, as well as reserves, with the exception of the legal reserve. Sums levied on profits for payment or acquisition of shares shall be entered in a reserve account until the final allotment of such shares. When the amount of a reserve account constituted by deducting from the company profits is equal to the amount of shares allotted, the final allotment may be achieved. In the event of issuance, the board of directors or the general director, as the case may be, is authorized to make the necessary changes to the provisions of the articles of association insofar as these amendments are materially in line with the results of the transaction.