Document:

Exhibit

Exhibit 4.2

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934

This summary highlights selected information about the capital stock of Wisconsin Electric Power Company (“WE,”“we” or “our”) and may not contain all of the information that is important to you. This summary does not purport to be exhaustive and is qualified in its entirety by reference to our Restated Articles of Incorporation (the “Articles”) and our Bylaws (the “Bylaws”). 
WE has the following two classes of capital stock registered under Section 12(g) of the Securities Exchange Act of 1934: 
		
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	Six Per Cent. Preferred Stock, $100 Par Value; and 

		
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	Serial Preferred Stock, 3.60% Series, $100 Par Value.

Description of Preferred Stock
General
WE has:
		
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	45,000 authorized shares of Six Per Cent. Preferred Stock at $100 Par Value (the “6% Preferred Stock”), of which 45,000 shares were issued and outstanding; and

		
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	2,286,500 authorized shares of Serial Preferred Stock, $100 Par Value, of which 260,000 were issued and outstanding and designated as Serial Preferred Stock, 3.60% Series, $100 Par Value (the “3.60% Serial Preferred Stock” and, together with the 6% Preferred Stock, the “Preferred Stock”). 

All of the outstanding shares of Preferred Stock are fully paid and non-assessable. 
Dividends
6% Preferred Stock. The holders of 6% Preferred Stock are entitled to receive cumulative cash dividends, when and as declared by the Board of Directors (“Board”) at the rate of 6%, payable quarterly on the last days of January, April, July and October in each year. We may not pay common dividends to our parent company and holder of all of our issued and outstanding common stock, WEC Energy Group, Inc. (“WEC”), if any dividends on the 6% Preferred Stock have not been paid.
3.60% Serial Preferred Stock. The holders of the 3.60% Serial Preferred Stock are entitled to receive cumulative cash dividends at the rate of 3.60%, payable quarterly on the first days of March, June, September and December in each year. We may not pay common dividends to WEC, the holder of all our issued and outstanding common stock, if any dividends on the 3.60% Serial Preferred Stock have not been paid.

In addition, pursuant to the terms of our 3.60% Serial Preferred Stock, our ability to declare common stock dividends would be limited to 75% or 50% of net income during a twelve month period if our common stock equity to total capitalization, as defined in the preferred stock designation is less than 25% and 20%, respectively.
Redemption Provisions
6% Preferred Stock. The 6% Preferred Stock is not redeemable by us at any time. 

3.60% Preferred Stock. The shares of the 3.60% Serial Preferred Stock are redeemable by us, in whole or in part, at any time upon not less than 30 nor more than 60 days’ notice to the date fixed for such redemption at a redemption price of $101 for each issued and outstanding share, plus accrued and unpaid dividends to the redemption date. 

Voting Rights

General

Except as described below, each outstanding share of Preferred Stock is entitled to one vote on each matter submitted to a vote at a meeting of our stockholders and shall vote together with all other classes of Preferred Stock and common stock as a single class. 

Dividend Default

If and when dividends payable on any Preferred Stock are in default in an amount equivalent to four full quarterly dividends for any such Preferred Stock, until such default has been remedied, the holders of the Preferred Stock, voting together as a class and without regard to series, are entitled to elect the smallest number of directors necessary to constitute a majority of the full Board, and our common stockholder, voting separately as a class, will be entitled to elect our remaining directors. When all dividends in default with respect to the applicable Preferred Stock have been paid, the special voting rights of the holders of the Preferred Stock to elect a majority of the Board shall be divested, provided that such special right to elect a majority of the Board shall be exercisable in the case of any similar future default or defaults.

Consent Rights

So long as any Preferred Stock is outstanding, WE cannot increase the total authorized amount of any class of Preferred Stock or authorize any other preferred stock ranking on parity with the Preferred Stock as to assets or dividends without the consent of the holders of a majority of the total number of Preferred Stock then outstanding, without regard to class or series, present or represented by proxy at a meeting duly called for such purpose. 

So long as any Preferred Stock is outstanding, WE cannot authorize any class of stock which would be preferred as to assets or dividends over the Preferred Stock without the consent of the holders of at least two-third of the total number of shares of the 6% Preferred Stock and at least two-third of the total number of shares of the 3.60% Serial Preferred Stock, without regard to series, present or represented by proxy at a meeting duly called for such purpose.

So long as any Preferred Stock is outstanding, WE cannot amend the Articles to (i) change the express terms and provisions of the 6% Preferred Stock in any manner substantially prejudicial to the holders thereof without the consent of two-thirds of the shares of 6% Preferred Stock then outstanding or (ii) change the express terms and provisions of the 3.60% Serial Preferred Stock in any manner substantially prejudicial to the holders thereof without the consent of two-thirds of the shares of 3.60% Serial Preferred Stock then outstanding.

So long as any shares of the 3.60% Serial Preferred Stock are outstanding, consent of two-thirds of the total number of shares of Preferred Stock outstanding, voting together as a class and without regard to series, is necessary for effecting or validating the issue of any additional shares of the 3.60% Serial Preferred Stock unless, in any such case: 

		
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	WE’s Net Income (as defined below) for any twelve consecutive calendar months within the fifteen calendar months immediately preceding the month within which the issuance of such additional shares is authorized by the Board shall have been in the aggregate not less than one and one-half times the sum of the interest requirements for one year on all of the indebtedness of WE to be outstanding at the date of such proposed issue and the full dividend requirements for one year on all shares of the Preferred Stock and all other stock, if any, ranking prior to or on parity with the 3.60% Preferred Stock, to be outstanding at the date of such proposed issue, including the shares then proposed to be issued but excluding any such indebtedness and any such shares proposed to be retired in connection with such proposed issue; and  

		
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	the aggregate of the capital of WE applicable to all stock of any class ranking junior to the Preferred Stock, plus the surplus of WE, shall be not less than the aggregate amount payable upon involuntary liquidation, dissolution or winding up of the affairs of WE to the holders of all shares of the Preferred Stock and of any shares of stock of any class ranking on a parity therewith to be outstanding immediately after such proposed issue, excluding from such computation all indebtedness and stock to be retired through such proposed issue.

“Net Income” for any period for the purpose of this subsection, is calculated by adding to the net earnings of WE for said period, determined in accordance with GAAP, as adjusted by action of the Board as hereafter provided, the amount deducted for interest.  In determining such net income for any period, there shall be deducted, in addition to other items of expense, the amount charged to income for said period on WE’s books for taxes and the provisions for depreciation and depletion as recorded on such books or the minimum amount required therefor under the provisions of any then existing general indenture or mortgage or deed of trust of WE, whichever is larger.  In the determination of such Net Income, the Board may, in the exercise of due discretion, make adjustments by way of increase or decrease in such net income to give effect to changes therein resulting from any acquisition of properties or to any redemption, acquisition, purchase, sale or exchange of securities by WE either prior to the issuance of any shares of the Preferred Stock or stock, or securities convertible into stock, ranking on a parity therewith then to be issued or in connection therewith.

Liquidation

In the event of any voluntary liquidation, dissolution or winding up, or involuntary liquidation of WE, each holder of a share of Preferred Stock is entitled to be paid the par value of such holder’s shares of Preferred Stock before any assets of WE are paid or distributed to the holder of our common stock. After the holders of Preferred Stock have received such payments, the remainder of our assets will be divided and distributed to the holder of our common stock. 

Preemptive and Conversion Rights

No holder of any of the Preferred Stock is entitled to preemptive or sinking fund provisions or conversion rights.  The Preferred Stock are not subject to further calls or to assessment by WE.Exhibit

Exhibit 4.1

ERIE INDEMNITY COMPANY
DESCRIPTION OF CAPITAL STOCK
The following summary of the rights of our Class A common stock, stated value $0.0292 per share (“Class A Common Stock”) and Class B common stock, stated value $70.00 per share (“Class B Common Stock”) does not purport to be complete. This summary is subject to and qualified by the provisions of our Amended and Restated Articles of Incorporation dated April 19, 2011 (“Articles of Incorporation”) and our Amended and Restated Bylaws dated April 30, 2019 (“Bylaws”), copies of which are incorporated herein by reference. Additionally, the Pennsylvania Business Corporation Law of 1988, as amended (the “PBCL”), also affects the terms of our capital stock.
Our authorized capital stock consists of 74,996,930 shares of Class A Common Stock and 3,070 shares of Class B Common Stock. As of the close of business on February 21, 2020, 46,189,068 shares of Class A Common Stock and 2,542 shares of Class B Common Stock were outstanding.  Updates to the number of shares outstanding will be made on the cover page of our annual or quarterly reports for subsequent fiscal years or fiscal quarters that we file with the Securities and Exchange Commission.
Description of Class A Common Stock and Class B Common Stock
Voting Rights.  Under our Articles of Incorporation, shares of Class B Common Stock have the exclusive right to elect directors and to vote on matters brought before meetings of shareholders, except where any applicable law shall permit shares of Class A Common Stock to vote as a class in regard to any change in the rights, preferences and privileges of our Class A Common Stock. 
Right to Dividends and Other Distributions.  Holders of shares of Class B Common Stock are entitled to receive dividends if, when and as they are declared by our Board of Directors out of funds legally available therefor. If and when a dividend is declared and paid on shares of Class B Common Stock, each share of Class A Common Stock is entitled to the declaration and payment of a dividend, at the same time and on the same record date, in an amount at least equal to two-thirds of one percent (2/3%) of the dividend per share paid on the Class B Common Stock. 
In addition, shares of Class A Common Stock are entitled to receive dividends if, when and as they are declared by our Board of Directors out of funds legally available therefor without any requirement that a simultaneous dividend be paid on shares of Class B Common Stock. 
Right to Receive Liquidation Distributions.  Upon our liquidation, dissolution or winding-up, holders of Class A Common Stock and holders of Class B Common Stock are entitled to share ratably in any assets available for distribution to shareholders, provided, however, that in any such event, each holder of a share of Class B Common 

	
			
	 
	 
	 

Stock shall receive the amount to which he or she would be entitled as if his or her share of Class B Common Stock had been converted into 2,400 shares of Class A Common Stock. 
Conversion.  Each share of Class B Common Stock is convertible at any time, at the option of the holder thereof, into 2,400 shares of Class A Common Stock.  We will cancel any shares of Class B Common Stock tendered for conversion and such shares shall not be reissued following conversion. Shares of Class A Common Stock are not convertible into any other shares of our capital stock.
Preemptive Rights.  Holders of Class A Common Stock have the preemptive right to subscribe for and purchase pro rata any shares of Class A Common Stock offered for sale for cash, at a price per share not less than the stated value of the Class A Common Stock and upon such terms as are fixed by our Board of Directors. This preemptive right does not apply to shares of Class A Common Stock issued upon the conversion of shares of Class B Common Stock. Holders of Class B Common Stock do not have preemptive rights.
Other Matters.  Holders of Class A Common Stock and Class B Common Stock have no cumulative voting rights. There are no redemption rights or sinking fund provisions applicable to the Class A Common Stock or Class B Common Stock. All outstanding shares of Class A Common Stock and Class B Common Stock are fully paid and non-assessable.
Trading Market.  The Class A Common Stock is registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is listed on the NASDAQ Global Select Market under the symbol “ERIE”. Broadridge Corporate Issuer Solutions, Inc. serves as our transfer agent.  The Class B Common Stock is not registered under the Exchange Act and is not actively traded.
Certain Provisions Affecting Control of Our Company
General. Certain provisions of our Articles of Incorporation, Bylaws and the PBCL operate with respect to extraordinary corporate transactions, such as mergers, reorganizations, tender offers, sales or transfers of substantially all of our assets or our liquidation of the Company, and could have the effect of delaying or making more difficult a change in control of our company in certain circumstances.
Certain Provisions of the Bylaws.  Our Bylaws establish advance notice procedures with respect to shareholder proposals and the nomination of candidates for election of directors.  These procedures may impede shareholders’ ability to bring matters before a meeting of shareholders or make nominations for directors at a meeting of shareholders.
Our Bylaws include provisions eliminating the personal liability of our directors to the fullest extent permitted by the PBCL and indemnifying our directors and officers to 

	
			
	 
	 
	 

the fullest extent permitted by the PBCL. The limitation of liability and indemnification provisions in our Bylaws may discourage shareholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions may also have the effect of reducing the likelihood of derivative litigation against directors and officers, even though a derivative action, if successful, might otherwise benefit us and our shareholders. 
Our Bylaws provide that any or all of the directors may be removed at any time, either with or without cause, by a vote of a majority of the shares of Class B Common Stock outstanding and entitled to vote. This provision may delay or prevent our shareholders from removing incumbent directors.
Our Bylaws may be altered, amended, changed or repealed by (i) the approval or consent of not less than a majority of the shares of Class B Common Stock then outstanding or (ii) a majority of the entire board of directors, subject to certain exceptions.
Certain Provisions of the PBCL.  Under the PBCL, certain anti-takeover provisions may apply to Pennsylvania registered corporations (e.g., publicly traded companies) including those relating to (i) business combination transactions with an interested shareholder (generally defined to include a person who beneficially owns shares representing at least twenty percent of the votes that all shareholders would be entitled to cast in an election of directors of the corporation) unless certain conditions are satisfied or an exemption is applicable; (ii) control-share acquisitions in which the voting rights of certain shareholders of the corporation (specifically, a shareholder who acquires 20%, 33-1/3 or 50% or more of the voting power of the corporation) are conditioned upon the consent of a majority vote at a meeting of the independent shareholders of the corporation after disclosure by such shareholder of certain information; (iii) disgorgement of profits by certain controlling persons, generally defined as a 20% beneficial owner, from the disposition of any equity securities within twenty-four months prior to, and eighteen months succeeding, the acquisition of such control; (iv) the payment of severance to any eligible employee of a covered corporation whose employment is terminated, other than for willful misconduct, within ninety days before, or twenty-four months after, a control-share acquisition; (v) the rights of shareholders who objects to a "control transaction" (generally defined as the acquisition of voting shares by a person or group that would entitle the holders thereof to cast at least 20% of the votes that all shareholders would be entitled to cast in an election of the directors of the corporation) to demand fair value for their stock following a control transaction; (vi) a set of interrelated provisions which are designed to support the validity of actions taken by our Board of Directors in response to takeover bids, including specifically the Board's authority to "accept, reject or take no action" with respect to a takeover bid, and permitting the unfavorable disparate treatment of a takeover bidder, and (viii) provisions which allow the directors broad discretion in considering the best interests of the corporation, including a provision which permits the Board to consider various corporate interests including the short-term and long-term interests of the corporation and the resources, intent and conduct of any person seeking to acquire the corporation.

	
			
	 
	 
	 

Other Factors.  There are three H.O. Hirt Trusts that collectively own 2,340 shares of Class B Common Stock which represents approximately 92% of our outstanding Class B Common Stock.  This concentrated ownership of the Class B Common Stock as well as certain insurance laws and regulations applicable to the acquisition of insurance holding companies can be expected to have the effect of delaying, averting or preventing a change in control of our company and would probably prevent a change in control unless a majority of the trustees then in office of each of the H.O. Hirt Trusts vote in favor of such a change in control.

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