SECTION 822-10

The company called to allot capital securities or securities giving access to it must take necessary measures for the protection of the interests of holders of rights thus created if it decides to issue, in any form whatsoever, new capital securities with pre-emptive subscription rights reserved for its shareholders, to distribute reserves in cash or in kind, as well as share, issue or merger premiums, or to change the distribution of its profits by creating preferred shares. For that purpose, it shall: 1) Either enable holders of these rights to exercise them if the period provided for in the issue agreement is not yet open, so they may immediately participate in the transactions referred to in the first paragraph or benefit therefrom; 2) Or adopt provisions enabling them, in case they will exercise their rights later, to subscribe for, on an irreducible basis, newly issued securities, or obtain them freely, or receive cash or similar assets to those that were allocated, in the same the quantities or proportions and under the same conditions, except for dividend rights, than if they were, at the time of the transaction, shareholders; 3) Or make an adjustment of subscription conditions, conversion bases, terms of exchange or allotment initially provided for so as to take into account the impact of transactions mentioned in the first paragraph.