Document:

EX-4.2

 Exhibit 4.2 

EXECUTION VERSION 
 FIRST
SUPPLEMENTAL INDENTURE 
 FIRST SUPPLEMENTAL INDENTURE, dated as of March 16, 2020 (this “Supplemental
Indenture”), by and among PATTERN ENERGY GROUP INC., a Delaware corporation, as issuer (the “Company”), PATTERN US FINANCE COMPANY LLC, a Delaware limited liability company (the “Guarantor”), PATTERN ENERGY
OPERATIONS LP, a Delaware limited partnership (“Pattern Ops”) and DEUTSCHE BANK TRUST COMPANY AMERICAS, as trustee (the “Trustee”), supplements the Indenture, dated as of January 25, 2017 (the
“Indenture”), among the Company, the Guarantor and the Trustee. 
 RECITALS OF THE COMPANY 

WHEREAS, pursuant to the Indenture, the Company issued $350,000,000 aggregate principal amount of 5.875% Senior Notes due 2024 (the
“Notes”); 
 WHEREAS, pursuant to the Agreement and Plan of Merger, dated as of November 3, 2019, among the Company,
Pacific US Inc., a Delaware corporation (“Parent”) that is controlled by Canada Pension Plan Investment Board, and Pacific BidCo US Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger
Sub”), Merger Sub has merged with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Parent; 

WHEREAS, Section 9.01(iv) of the Indenture provides that the Company, the Guarantor and the Trustee may amend or supplement the
Indenture, the Notes or the Guarantee, without the consent of any Holder of Notes, to make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights under the
Indenture of any Holder in any material respect; 
 WHEREAS, the Board of Directors has duly adopted resolutions authorizing the Company to
execute and deliver this Supplemental Indenture; 
 WHEREAS, the Company has requested that the Trustee execute and deliver this
Supplemental Indenture and has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel; and 
 WHEREAS, all
conditions precedent provided for in the Indenture relating to the execution of this Supplemental Indenture have been complied with. 
 NOW,
THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH, for and in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto mutually covenant and agree for the equal and
proportionate benefit of the Holders as follows: 

 ARTICLE 1 

TERMS 

Section 1.01. Definitions. Capitalized terms used but not defined herein have the meanings ascribed to such terms in the
Indenture. 
 ARTICLE 2 

AMENDMENTS 

Section 2.01. Assumption; Joint and Several Liability. Pattern Ops, as co-obligor, hereby
expressly assumes, jointly and severally with the Company, liability for (a) the due and punctual payment of the principal of (and premium, if any, on) and interest on all the Notes issued under the Indenture and (b) the due and punctual
performance and observance of all of the covenants and conditions of the Indenture to be performed by the Company. 
 Section 2.02.
Obligations of the Company. Notwithstanding the agreement of Pattern Ops to become liable for the due and punctual payment of the principal of (and premium, if any, on) and interest on all the Notes issued under, the Company remains the
issuer of the Notes and fully liable for all of its obligations under the Indenture and has not been released from any liabilities or obligations thereunder. 

ARTICLE 3 

ACCEPTANCE OF SUPPLEMENTAL INDENTURE 

Section 3.01. Trustee’s Acceptance. The Trustee hereby accepts this Supplemental Indenture and agrees to perform the same
under the terms and conditions set forth in the Indenture. 
 ARTICLE 4 

MISCELLANEOUS PROVISIONS 

Section 4.01. Governing Law; Waiver of Trial by Jury. THIS SUPPLEMENTAL INDENTURE AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING
UNDER OR RELATED TO THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

EACH OF THE COMPANY, THE GUARANTOR, PATTERN OPS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

  
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 Section 4.02. Benefits of Supplemental Indenture. Nothing in this Supplemental
Indenture, expressed or implied, shall give to any Person, other than the Holders, the parties hereto, any Paying Agent, any authenticating agent, any Registrar and their successors hereunder, any benefit or any legal or equitable right, remedy or
claim under this Supplemental Indenture. 
 Section 4.03. Execution in Counterparts. This Supplemental Indenture may be executed
in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF
transmission shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by
facsimile or PDF shall be deemed to be their original signatures for all purposes. 
 Section 4.04. Ratification of Indenture.
The Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental Indenture shall be deemed part of the Indenture in the manner and to the extent herein provided. 

Section 4.05. The Trustee. The Trustee makes no representations as to and shall not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture. The recitals in this Supplemental Indenture are made by the Company only and not by the Trustee, and all of the rights, privileges, protections, immunities and benefits
afforded to the Trustee under the Indenture are deemed to be incorporated herein, and shall be enforceable by the Trustee hereunder, in each of its capacities hereunder as if set forth herein in full. 

Section 4.06. Effect on Successors and Assigns. All agreements of the Company, the Guarantor, Pattern Ops, the Trustee, the
Registrar and the Paying Agent in this Supplemental Indenture will bind their respective successors. 
 Section 4.07. Headings,
Etc. The titles and headings of the articles and sections of this Supplemental Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or
provisions hereof. 
 [Signature Pages Follow] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed as of the day and year first written above. 
  

			
	
	PATTERN ENERGY GROUP INC.
		
	By:	 	 /s/ Dyann Blaine

		 	Name: Dyann Blaine
		 	Title: Vice President
	
	 PATTERN US FINANCE COMPANY

LLC, as Guarantor

		
	By:	 	 /s/ Dyann Blaine

		 	Name: Dyann Blaine
		 	Title: Vice President
	
	PATTERN ENERGY OPERATIONS LP
		
	By:	 	 /s/ Dyann Blaine

		 	Name: Dyann Blaine
		 	Title: Vice President

 [Signature Page to 2024 Notes Supplemental Indenture] 

 
			
	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee
		
	By:	 	 /s/ Luke Russell

		 	Name: Luke Russell
		 	Title: Assistant Vice President
		
	By:	 	 /s/ Chris Niesz

		 	Name: Chris Niesz
		 	Title: Vice President

 [Signature Page to 2024 Notes Supplemental Indenture]Exhibit 4.2

 

DESCRIPTION OF HOWARD BANCORP, INC. CAPITAL
STOCK

 

References to “we,” “us”
or “our” and the “Company” herein refer to Howard Bancorp, Inc., a Maryland corporation.

 

This summary does not purport to be complete
and is qualified in its entirety by reference to our articles of incorporation, as amended (“Articles of Incorporation”),
and our amended and restated bylaws (“Bylaws”), each of which is incorporated by reference as an exhibit to our Annual
Report on Form 10-K filed with the Securities and Exchange Commission of which this Exhibit 4.2 is a part. We encourage you to
read our Articles of Incorporation and Bylaws, which are incorporated herein by reference, and the applicable provisions of the
Maryland General Corporation Law (the “MGCL”).

 

General

 

Our Articles of Incorporation authorize
the issuance of capital stock consisting of 20,000,000 shares of common stock, par value $0.01 per share, and 5,000,000 shares
of preferred stock, par value $0.01 per share. As of December 19, 2019, we had 19,066,913 shares of common stock outstanding and
had reserved for issuance (i) 25,000 shares of common stock underlying options that are or may become exercisable at an average
price of $14.54 per share and (ii) 11,032 shares of common stock underlying unvested restricted stock units. In addition, as of
December 31, 2019, we had the ability to issue 564,414 shares of common stock pursuant to options, restricted stock, restricted
stock units and other equity awards that may be granted in the future under our existing equity compensation plans. As of December
31, 2019, we had no shares of preferred stock issued and outstanding.

 

The authorized but unissued shares of our
common stock and preferred stock are available for general purposes, including, but not limited to, the possible issuance as stock
dividends, use in connection with mergers or acquisitions, cash dividend reinvestments, stock purchase plans, public or private
offerings, or our equity compensation plans. Except as may be required to approve a merger or other transaction in which additional
authorized shares of common stock would be issued, no stockholder approval will be required for the issuance of those shares.

 

Common Stock

 

General

 

Each share of common stock has the same
relative rights as, and is identical in all respects to, each other share of common stock. All outstanding shares of our common
stock are fully paid and nonassessable. Our common stock is listed on The NASDAQ Capital Market under the symbol “HBMD.”

 

Voting Rights

 

In general, each outstanding share of our
common stock entitles the holder to vote for the election of directors and on all other matters requiring stockholder action, and
each share is entitled to one vote. The holders of our common stock possess exclusive voting power, except as otherwise provided
by law or by articles of amendment establishing any series of our preferred stock.

 

There is no cumulative voting in the election
of directors. Assuming a quorum is present, our directors will be elected by holders of our common stock by a plurality vote. All
other questions brought before a meeting of stockholders at which a quorum is present will be decided by a majority of all the
votes cast at the meeting, whether cast in person or by proxy, unless the matter requires a greater number of affirmative votes
under the MGCL or our Articles of Incorporation. Our Articles of Incorporation and Bylaws contain certain provisions that may limit
stockholders’ ability to effect a change in control as described under the section below entitled “Anti-Takeover Effects
of Certain Articles of Incorporation and Bylaws Provisions and Maryland Law.”

 

     

     

    

 

Dividend, Liquidation and Other Rights

 

Subject to all rights of holders of any
other class or series of stock, holders of common stock are entitled to receive dividends if and when our board of directors declares
dividends from funds legally available therefor. Under Maryland law, we are not permitted to pay dividends if, as a result, we
would be unable to pay our debts as they come due in the ordinary course of business or if our total assets would be less than
the sum of our total liabilities plus the amount that would be needed, if we were to be dissolved at the time the dividend is paid,
to satisfy the preferential rights on dissolution of any stockholders whose preferential rights on dissolution are superior to
those stockholders receiving the dividend. If we issue preferred stock, the holders of such preferred stock may have a priority
over the holders of common stock with respect to dividends.

 

If we voluntarily or involuntarily liquidate,
dissolve or wind up, holders of our common stock are entitled to share ratably in our assets legally available for distribution
after payment of, or adequate provision for, all of our known debts and liabilities. These rights are subject to the preferential
liquidation rights of any series of our preferred stock that may then be outstanding.

 

Holders of our common stock have no preference,
conversion, exchange, sinking fund or redemption rights and have no preemptive rights to purchase or subscribe for any of our securities.
Our board of directors may issue additional shares of our common stock or rights to purchase shares of our common stock without
the approval of our common stockholders.

 

Additional Shares

 

Our Articles of Incorporation grant our
board of directors the right to classify or reclassify any unissued shares of common stock from time to time by setting or changing
the preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends, qualifications and terms
or conditions of redemption. Accordingly, our board of directors could authorize the issuance of additional shares of common stock
with terms and conditions that could have the effect of discouraging a takeover or other transaction which the holders of some,
or a majority, of shares of common stock might believe to be otherwise in their best interests or in which the holders of some,
or a majority of, shares of common stock might receive a premium for their shares of common stock over the then market price of
such shares. As of the date hereof, our board of directors has no plans to classify or reclassify any unissued shares of common
stock.

 

Transfer Agent and Registrar

 

The transfer agent and registrar for our
common stock is Computershare, Inc.

 

Preferred Stock

 

Our board of directors, without stockholder
approval, is empowered to authorize the issuance, in one or more series, of shares of preferred stock at such times, for such purposes
and for such consideration as it may deem advisable. The description of the shares of each series of preferred stock, including
the designation, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or terms or
conditions of redemption will be set forth in resolutions adopted by our board of directors and in Articles Supplementary filed
as required by Maryland law. Accordingly, our board of directors, without stockholder approval, may authorize the issuance of one
or more series of preferred stock with voting and conversion rights which could adversely affect the voting power of the holders
of common stock and, under certain circumstances, discourage an attempt by others to gain control of the Company.

 

The creation and issuance of any series
of preferred stock, and the relative rights, designations and preferences of such series, if and when established, will depend
on, among other things, our future capital needs, then existing market conditions and other factors that, in the judgment of our
board of directors, might warrant the issuance of preferred stock.

 

No shares of preferred stock are issued
and outstanding as of December 31, 2019.

 

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Anti-Takeover Effects of Certain Articles of Incorporation
and Bylaws Provisions and Maryland Law

 

Our Articles of Incorporation and Bylaws,
in addition to the MGCL, contain certain provisions that make it more difficult to acquire control of us by means of a tender offer,
open market purchase, a proxy fight or otherwise. Several of these provisions are designed to encourage persons seeking to acquire
control of us to negotiate with our board of directors. We believe that, as a general rule, the interests of our stockholders would
be best served if any change in control results from negotiations with our board of directors.

 

Despite our belief as to the benefits of
the following provisions, these provisions also may have the effect of discouraging a future takeover attempt in which stockholders
might receive a substantial premium for their shares over then current market prices and may tend to perpetuate existing management.
As a result, stockholders who might desire to participate in such a transaction may not have an opportunity to do so. Our board
of directors, however, believes that the potential benefits of these provisions outweigh their possible disadvantages.

 

The following description of certain provisions
of our Articles of Incorporation and Bylaws and the MGCL that may have anti-takeover effects is a summary only and is subject to,
and is qualified by reference to, applicable provisions of our Articles of Incorporation and our Bylaws as well as applicable provisions
of the MGCL.

 

Provisions of Our Articles of Incorporation
and Bylaws

 

Classification of the Board of Directors.
Our Articles of Incorporation provide that we will have not less than five nor more than 25 directors, and our Bylaws provide that
the exact number shall be fixed by its board of directors and that the number of directors may be increased or decreased by the
board of directors. Our board of directors is currently comprised of 13 directors.

 

Our directors are divided into three classes
- Class I, Class II, and Class III - each class consisting of an equal number of directors, or as nearly equal as possible. Each
director generally serves for a term ending on the date of the third annual meeting following the annual meeting at which such
director was elected. A classified board of directors promotes continuity and stability of management, but makes it more difficult
for our stockholders to change a majority of the directors because it generally takes at least two annual elections of directors
for this to occur. We believe that classification of the board of directors will help to assure the continuity and stability of
the Company’s business strategies and policies as determined by its board of directors.

 

Extraordinary Transactions. Pursuant
to the MGCL, a Maryland corporation generally cannot (except under and in compliance with specifically enumerated provisions of
the MGCL) amend its articles of incorporation, consolidate, merge, sell, lease or exchange all or substantially all of its assets,
engage in a share exchange, or liquidate, dissolve or wind-up unless such acts are approved by the affirmative vote of holders
of at least two-thirds of the shares entitled to vote on the matter, unless a lesser or greater percentage is set forth in the
corporation’s articles of incorporation. Our Articles of Incorporation require that such acts (other than an amendment to
our Articles of Incorporation to increase or decrease the number of authorized shares of our capital stock, which our Articles
of Incorporation authorize the board of directors to approve without stockholder approval) be approved by the affirmative vote
of holders of at least 80% of all the votes entitled to be cast on the matter unless, other than with respect to certain amendments
to our Articles of Incorporation, the transaction is approved by a majority of our board of directors.

 

Articles of Incorporation Amendments.
In general, other than amendments permitted to be made without stockholder approval under Maryland law or by a specific provision
in our Articles of Incorporation, such as our ability to increase or decrease the aggregate number of shares of stock or the number
of shares of stock of any class that we have the authority to issue, the current provisions of our Articles of Incorporation may
be amended if such amendment is declared advisable by our board of directors and is approved by our stockholders by the affirmative
vote of a majority of all votes entitled to be cast on the matter voting together as a single class.

 

Bylaws Amendments. Our Bylaws may
be amended only by the board of directors. Our Articles of Incorporation and Bylaws provide that stockholders have no power or
authority to amend, alter, change or repeal our Bylaws.

 

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Removal of Directors. Our Articles
of Incorporation and Bylaws provide that a director may only be removed by the affirmative vote of holders of at least 80% of the
votes entitled to be cast in the election of directors. In addition, the MGCL provides that if a corporation’s directors
are divided into classes, as ours are, a director may only be removed for cause.

 

No Dissenters’ Rights. Our
Articles of Incorporation provides that our stockholders and other security holders are not entitled to exercise any rights of
an objecting stockholder under the MGCL unless otherwise determined by our board of directors in its sole discretion.

 

Procedures for Stockholder Nominations
and Proposals. Our Bylaws provide that any stockholder desiring to make a nomination for the election of directors or a proposal
for new business at an annual meeting of stockholders must submit written notice to the Company’s secretary not less than
90 days nor more than 120 days before the anniversary of the mailing date of the proxy materials in connection with the Company’s
prior year’s annual meeting, unless we provide prior public disclosure, as defined in our Bylaws, of less than 100 days of
such annual meeting, in which case such notice must be received not later than the tenth day following the day on which we first
make such public disclosure of the date of the meeting. With respect to an election to be held at a special meeting of stockholders,
notice of nominees for director must be received no later than the tenth day following the day on which prior public disclosure
of the date of the special meeting is first made.

 

A stockholder’s notice to the secretary
must set forth as to each matter such stockholder proposes to bring before the annual meeting (i) a brief description of the business
desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, (ii) the name
and address, as they appear on our books, of the stockholder proposing such business and, to the extent known, any other stockholders
known by such stockholder to be supporting such proposal, (iii) the class and number of shares of our capital stock that are beneficially
owned by such stockholder on the date of such stockholder notice and, to the extent known, by any other stockholders known by such
stockholder to be supporting such proposal on the date of such stockholder notice, (iv) the identification of any person retained
or to be compensated by the stockholder submitting the proposal, or any person acting on his or her behalf, to make solicitations
or recommendations to stockholders for the purpose of assisting in the passage of such proposal and a brief description of the
terms of such employment, retainer or arrangement for compensation, and (v) any material interest of the stockholder in such business.

 

A stockholder’s notice with respect
to the nomination of a director candidate must set forth: (a) as to each person whom the stockholder proposes to nominate for election
or re-election as a director and as to the stockholder giving the notice (i) the name, age, business address and residence address
of the person (and as the address appears on our books, if different), (ii) the principal occupation or employment of the person,
(iii) the class and number of shares of our stock that are beneficially owned by the person on the date of such stockholder notice,
and (iv) any other information relating to the person that is required to be disclosed in solicitations for proxies for election
of directors pursuant to the proxy rules under the Securities Exchange Act of 1934 or any successor rule thereto (to the extent
such rules are applicable to us); (b) as to any person known by the stockholder giving the notice to be supporting any such nominee
(i) the name and address, as they appear on our books, of such persons and (ii) the class and number of shares of our stock that
are beneficially owned by such persons; (c) a representation that the stockholder giving the notice intends to appear in person
or by proxy at the meeting to nominate the person or persons specified in the notice; (d) a description of all arrangements or
understandings between the stockholder giving the notice and each nominee and any arrangements or understandings between the stockholder
and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination or nominations
are to be made by the stockholder; and (e) the consent of each nominee to serve as a director if so elected.

 

Nominations and proposals that fail to follow
the prescribed procedures will not be considered. We believe that it is in our and our stockholders’ best interests to provide
sufficient time to enable management to disclose to stockholders information about a dissident slate of nominations for directors
or proposals for new business. This advance notice requirement also may give management time to solicit its own proxies in an attempt
to defeat any dissident slate of nominations should management determine that doing so is in the best interest of stockholders
generally. Similarly, adequate advance notice of stockholder proposals will give management time to study such proposals and to
determine whether to recommend to the stockholders that such proposals be adopted.

 

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Absence of Cumulative Voting. There
is no cumulative voting in the election of our directors. Cumulative voting means that holders of stock of a corporation are entitled,
in the election of directors, to cast a number of votes equal to the number of shares that they own multiplied by the number of
directors to be elected. Because a stockholder entitled to cumulative voting may cast all of his, her or its votes for one nominee
or disperse his, her or its votes among nominees as the stockholder chooses, cumulative voting is generally considered to increase
the ability of minority stockholders to elect nominees to a corporation’s board of directors. The absence of cumulative voting
means that the holders of a majority of our voting shares can elect all of the directors then standing for election and the holders
of the remaining shares will not be able to elect any directors.

 

Authorized Shares. As indicated above,
our Articles of Incorporation currently authorize the issuance of 20,000,000 shares of common stock and 5,000,000 shares of preferred
stock and authorize a majority of our board of directors, without stockholder approval, to increase or decrease the aggregate number
of shares of its stock or the number of shares of stock of any class that we have authority to issue. The authorization of shares
of common stock and preferred stock in excess of the amount issued, and the authority of a majority of the board of directors to
increase our authorized capital stock or any class thereof without stockholder approval, provides our board of directors with flexibility
to effect, among other transactions, financings, acquisitions, stock dividends, stock splits and stock options or other stock-based
compensation. The unissued authorized shares also may be used by our board of directors consistent with its fiduciary duty to deter
future attempts to gain control of the Company. Also, as indicated above, our board of directors’ right to set the terms
of one or more series of preferred stock has anti-takeover effects.

 

Maryland Anti-Takeover Statutes

 

Business Combinations. Under the
MGCL, certain “business combinations” between a Maryland corporation and an “Interested Stockholder” (as
described in the MGCL) are prohibited for five years after the most recent date on which the Interested Stockholder became an Interested
Stockholder, unless an exemption is available. Thereafter a business combination must be recommended by the board of directors
of the corporation and approved by the affirmative vote of at least (i) 80% of the votes entitled to be cast by holders of outstanding
voting shares of the corporation and (ii) two-thirds of the votes entitled to be cast by holders of outstanding voting shares of
the corporation other than shares held by the Interested Stockholder with whom the business combination is to be effected, unless
the corporation’s stockholders receive a minimum price (as described in the MGCL) for their shares and the consideration
is received in cash or in the same form as previously paid by the Interested Stockholder for its shares.

 

Maryland’s business combination statute
does not apply to business combinations that are approved or exempted by the board of directors prior to the time that the Interested
Stockholder becomes an Interested Stockholder. In addition, Maryland’s business combination statute does not apply to a corporation
that “opts out” of the business combination statute through a provision in its articles of incorporation. We have not
elected to “opt out” of Maryland’s business combination statute through such a provision.

 

Control Share Acquisitions. The MGCL
provides that holders of “control shares” of a Maryland corporation acquired in a “control share acquisition”
have no voting rights with respect to the “control shares” except to the extent approved by a vote of holders of two-thirds
of the shares entitled to be voted on the matter, excluding shares of stock owned by the acquirer or by officers or directors who
are employees of the corporation. “Control shares” are voting shares of stock which, if aggregated with all other such
shares of stock previously acquired by the acquirer, or in respect of which the acquirer is able to exercise or direct the exercise
of voting power except solely by virtue of a revocable proxy, would entitle the acquirer to exercise voting power in electing directors
within one of the following ranges of voting power: (i) one-tenth or more but less than one-third; (ii) one-third or more but less
than a majority; or (iii) a majority of all voting power. Control shares do not include shares the acquiring person is then entitled
to vote as a result of having previously obtained stockholder approval. A “control share acquisition” means the acquisition
of control shares, subject to certain exceptions.

 

A person who has made or proposes to make
a control share acquisition, upon satisfaction of certain conditions (including an undertaking to pay expenses and delivery of
an “acquiring person statement”), may compel the corporation’s board of directors to call a special meeting of
stockholders to be held within 50 days of demand to consider the voting rights of the shares. If no request for a meeting is made,
the corporation may itself present the question at any stockholders’ meeting.  

 

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Unless the corporation’s articles
of incorporation or bylaws provide otherwise, if voting rights are not approved at the meeting or if the acquiring person does
not deliver an acquiring person statement within 10 days following a control share acquisition then, subject to certain conditions
and limitations, the corporation may redeem any or all of the control shares (except those for which voting rights have previously
been approved) for fair value determined, without regard to the absence of voting rights for the control shares, as of the date
of the last control share acquisition or of any meeting of stockholders at which the voting rights of such shares are considered
and not approved. Moreover, unless the articles of incorporation or bylaws provides otherwise, if voting rights for control shares
are approved at a stockholders’ meeting and the acquirer becomes entitled to exercise or direct the exercise of a majority
or more of all voting power, other stockholders may exercise dissenters’ rights. The fair value of the shares as determined
for purposes of such dissenters’ rights may not be less than the highest price per share paid by the acquirer in the control
share acquisition.

 

Maryland’s control share acquisition
statute does not apply to individuals or transactions that are approved or exempted (whether generally or specifically) in a provision
of the corporation’s articles of incorporation or bylaws before the control share acquisition occurs. We have not approved
or exempted any individuals or transactions through such a provision.

 

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