SECTION 838

The issuance by public offering without pre-emptive subscription right of new shares which do not confer to their holders the same rights as the old shares shall be subject to the following conditions: 1) the issue must be carried out within a period of two (2) years from the general meeting which authorized it; 2) the issue price or pricing conditions shall be set by the extraordinary general meeting based on report of the board of directors and on the special report of the auditors. If the issue is not carried out on the date of the annual general meeting following the decision, an extraordinary general meeting shall make the decision based on the report of the board of directors and on the special report of the auditors, on the retention or adjustment of the issue price or the conditions of its determination and, failing this, the decision of the first meeting shall be null.