SECTION 778-12

In case of merger or demerger, preferred shares may be exchanged for shares of companies benefiting from the assignment of assets with equivalent special rights, or on the basis of a specific exchange parity taking into account abandoned specific rights. In the absence of exchange for shares conferring equivalent special rights, the merger or the demerger shall be submitted to the approval of the special meeting referred to in article 555 above. Any decision taken in violation of the foregoing shall be null.