Companies which Issue convertible Preferred Shares may recover such Shares in accordance with the following conditions: 1. Pay the value of the Preferred Shares in full. 2. Pay the value of the Preferred Shares from the Issuer’s profits or from returns of a new issue of Shares, which are allotted for the purpose of redeeming such shares. In the event there is a proposal for the redemption of Preferred Shares from the Issuer’s profits, an amount that equals the par value of the Preferred Shares recovered of the Issuer’s profits, the amount shall be transferred to a reserve account named the reserve account of capital redemption.