Document:

Exhibit 4.5

    

    

    HUMANA INC.

    4.875% Senior Notes due 2030

    PRINCIPAL AMOUNT

    
      
        	REGISTERED	
                $

                  

              

      

      

    

    CUSIP No.: 444859BN1

    ISIN No.: US444859BN12

    No. 1

    

    

    THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A
      DEPOSITARY OR A NOMINEE THEREOF.  UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY (THE “DEPOSITARY”) TO A NOMINEE OF THE
      DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
      TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS
      IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

    HUMANA INC., a Delaware corporation (the “Issuer” or the “Company,” which terms include any successor
      corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of                      DOLLARS on April 1, 2030 and to pay interest thereon (computed on
      the basis of a 360-day year of twelve 30-day months), semi-annually in arrears on April 1st and October 1st (the “Interest Payment Dates”) of each year, commencing on October 1, 2020, at the rate per annum specified in the title of this Note from
      March 26, 2020 or the most recent Interest Payment Date to which interest had been paid or duly provided for.

    The interest so payable and punctually paid or duly provided for on any Interest Payment Date will, as
      provided in the Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on March 15th or September 15th (the “Record Date”) immediately preceding such Interest Payment
      Date. Except as provided herein, payment of the principal of (and premium, if any) and interest on this Note will be made at the office or agency of the Company maintained by the Company for such purpose, in the Borough of Manhattan, The City of New
      York, which initially will be in the corporate trust office of an affiliate of The Bank of New York Mellon Trust Company, N.A., the Trustee for this Note under the Indenture, located at 240 Greenwich Street, New York, New York 10286, in such coin or
      currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

    Reference is hereby made to the further provisions of this Note as set forth on the reverse hereof,
      which further provisions shall for all purposes have the same effect as if set forth at this place.

    Unless the certificate of authentication hereon has been executed by or on behalf of The Bank of New
      York Mellon Trust Company, N.A., the Trustee for this Note under the Indenture, or its successor thereunder, by the manual signature of one of its authorized officers, this Note shall not be entitled to any benefit under the Indenture or be valid or
      obligatory for any purpose.

    
      
        

    

    IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed, manually or in
      facsimile, and an imprint or facsimile of its corporate seal to be imprinted hereon.

    Dated:  March 26, 2020

    

    

    	
            HUMANA INC.

          
	 	 	 
	
            By

          	 	 
	
            Name:

          	 	
            Alan J. Bailey

          
	
            Title:

          	 	
            Vice President, Treasury

          

    

    

    [FACSIMILE OF SEAL]

    Attest:

    	
            By

          	 	 
	
            Name:

          	 	
            Joseph M. Ruschell

          
	
            Title:

          	 	
            Associate Vice President, Assistant General Counsel & Corporate Secretary

          

    

    

    

    

    
      
        

    

    CERTIFICATE OF AUTHENTICATION

    This is one of the Securities of the series designated therein described in the within-mentioned Indenture.

    

    

    	
            THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

          
	 	 	 
	
            By

          	 	 
	 	 	
            Authorized Signatory

          
	 	 	 
	
            Dated:

          

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        

    

    (Reverse of Note)

    HUMANA INC.

     This Note is one of a duly authorized issue of Securities of the Company designated as its 4.875%
      Senior Notes due 2030 (the “Notes”).  The Notes are one of an indefinite number of series of debt securities of the Company (the “Securities”), issued or issuable under and pursuant to a base indenture, dated as of August 5, 2003 (the “Base
      Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.) (as successor to The Bank of New York) (herein called the “Trustee,” which term includes any successor
      Trustee under the Indenture), as supplemented by a seventeenth supplemental indenture, dated as of March 26, 2020 (the “Seventeenth Supplemental Indenture”; the Base Indenture as supplemented by the Seventeenth Supplemental Indenture is herein called
      the “Indenture”), to which Indenture and all indentures supplemental thereto (other than supplemental indentures creating a different series of notes) reference is hereby made for a statement of the respective rights thereunder of the Company, the
      Trustee and the Holders of the Notes and the terms upon which the Notes are to be authenticated and delivered.  The terms, conditions and provisions of the Notes are those stated in the Indenture, those made part of the Indenture by reference to the
      Trust Indenture Act of 1939, as amended, and those set forth in this Note.  This Note is one of a series designated on the face hereof initially issued in an aggregate principal amount of $        .  The Company may, from time to time, without the
      consent of the Holders, issue and sell additional Securities ranking equally with the Notes and otherwise identical in all respects (except for their date of issue, issue price and, if applicable, the first payment of interest on the additional
      Securities) so that such additional Securities shall be consolidated and form a single series with the Notes.  If any additional Securities are not fungible with the Notes for U.S. federal income tax purposes, they will be issued with a different
      CUSIP number (or other applicable identifying number).

    The terms of other series of Securities issued under the Base Indenture may vary with respect to
      interest rates or interest rate formulas, issue dates, maturity, redemption, repayment, currency of payment and otherwise as provided in the Base Indenture.  The Base Indenture further provides that Securities of a single series may be issued at
      various times, with different maturity dates and may bear interest at different rates.  All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

    This Note is not subject to any sinking fund.

    If an Event of Default (other than an Event of Default described in Section 501(5) or 501(6) of the
      Indenture, with respect to the Company) with respect to the Notes shall occur and be continuing, then either the Trustee or the Holders of not less than 25% in aggregate principal amount of the Notes of this series then Outstanding may declare the
      aggregate principal amount of the Notes of this series due and payable in the manner and with the effect provided in the Indenture.  If an Event of Default specified in Section 501(5) or 501(6) occurs with respect to the Company, all of the unpaid
      principal amount and accrued interest thereon shall ipso facto become and be immediately due and payable in the manner and with the effect provided in the Indenture without any declaration or other act by the Trustee or any Holder.

    This Note may be redeemed at any time in whole, or from time to time in part, at the option of the Company
      (such date of redemption, the “Optional Redemption Date”) at the Redemption Price (as defined below) plus accrued and unpaid interest thereon to the Optional Redemption Date, subject to the rights of Holders as of the close of business on a relevant
      Record Date to receive interest due on the related Interest Payment Date.

    The “Redemption Price” shall equal the greater of:

    
      	
              •

            	
              100% of the principal amount of the Notes to be redeemed; and

            

    

    
      	
              •

            	
              the sum of the present values of the remaining scheduled payments on the Notes to be redeemed consisting of
                principal and interest, exclusive of interest accrued to the Optional Redemption Date that would be due if the notes matured on the Par Call Date, discounted to the Optional Redemption Date on a semiannual basis (assuming a 360-day year
                consisting of twelve 30-day months) at the applicable Treasury Yield plus 50 basis points;

            

    

    provided,
        however, that if the Company redeems any Notes on or after the Par Call Date, the Redemption Price for such Notes shall equal 100% of the principal amount of Notes to be redeemed.

    The Notes called for redemption become due on the Optional Redemption Date.  Notices of redemption will be
      mailed (or otherwise transmitted in accordance with the applicable procedures of the Depositary) at least 15 but not more than 60 days before the Optional Redemption Date to each Holder of Notes to be redeemed at its registered address.  The notice
      of redemption for the Notes will state the amount to be redeemed.  On and after the Optional Redemption Date, interest will cease to accrue on any Notes that are redeemed.  If less than all the Notes are redeemed at any time, the Notes shall be
      selected on a pro rata basis or by any other method the Trustee deems fair and appropriate.

    For purposes of determining the Redemption Price, the following definitions are applicable:

    “Comparable Treasury Issue” means the United States Treasury security selected by an Independent
      Investment Banker as having a maturity comparable to the remaining term of the Notes to be redeemed (assuming, for this purpose, that such Notes matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with
      customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes assuming for this purpose, the Notes mature on the Par Call Date.

    “Comparable Treasury Price” means, with respect to any Optional Redemption Date the average of the
      Reference Treasury Dealer Quotations obtained by the Company for that Optional Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or, if the Company is unable to obtain at least four such Reference
      Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations obtained by the Company.

    “Independent Investment Banker” means each of BofA Securities, Inc., Goldman Sachs & Co. LLC or J.P.
      Morgan Securities LLC, as selected by the Company or, if all such firms are unwilling or unable to select the applicable Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Company.

    “Par Call Date” means January 1, 2030 (three months prior to maturity).

    “Reference Treasury Dealer” means each of BofA Securities, Inc., Goldman Sachs & Co. LLC or J.P.
      Morgan Securities LLC and their respective successors and two other primary U.S. government securities dealers in New York City (each, a “Primary Treasury Dealer”) selected by the Independent Investment Banker; provided, however, that if any of the
      foregoing shall cease to be a Primary Treasury Dealer, the Company shall substitute therefor another Primary Treasury Dealer.

    “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any
      Optional Redemption Date for the Notes, an average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue for the Notes, expressed in each case as a percentage of its principal amount, quoted in writing to the
      Company by the Reference Treasury Dealer at 3:30 p.m., New York City time, on the third business day preceding the Optional Redemption Date.

    “Treasury Yield” means, with respect to any Optional Redemption Date, the rate per annum equal to the
      semi-annual equivalent yield to maturity, computed as of the third business day immediately preceding the Optional Redemption Date, of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue, expressed as a percentage of its
      principal amount, equal to the applicable Comparable Treasury Price for the Optional Redemption Date.

    As provided in the Indenture, the Notes shall be subject to repurchase by the Company or a third party at
      the option of the Holders at a purchase price of 101% upon the occurrence of a Change of Control Triggering Event.  Upon receipt of notice of a Change of Control Offer, Holders electing to have Notes repurchased pursuant to the Change of Control
      Offer shall either (i) surrender this Note with the form of “Option of Holder to Elect Repurchase” attached hereto completed or (ii) transfer its Notes to the Paying Agent by book-entry transfer pursuant to the applicable procedures of the Paying
      Agent, in either case prior to the close of business on the third Business Day prior to the Change of Control Payment Date.

    The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee with the
      consent of the Holders of more than 50% in aggregate principal amount of the Securities at the time Outstanding of each series issued under the Indenture to be affected thereby, to execute supplemental indentures for the purpose of adding any
      provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any manner the rights of the Holders of the Securities of such series; provided, however, that no such supplemental indenture shall, among other things, (i) change the Stated Maturity of the principal of, or any installment of principal of or interest on, any Security, or reduce the
      principal amount thereof or interest thereon, if any, or any premium payable upon redemption thereof; or (ii) change the Place of Payment on any Security or the currency or currency unit in which any Security or the principal or interest thereon is
      payable; (iii) impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof; (iv) reduce or alter the method of computation of any amount payable upon redemption, repayment or purchase of any
      Securities by the Company (or the time when such redemption, repayment or purchase may be made); or (v) reduce the percentage in principal amount of the Securities, the Holders of which are required to consent to any supplemental indenture, without
      the consent of the Holder of each Security affected thereby.  The Indenture also contains provisions permitting the Holders of more than 50% in aggregate principal amount of the Securities of each series at the time outstanding, on behalf of the
      Holders of all the Securities of that series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences with respect to such series, except a default in the
      payment of principal of or interest, if any, on any Security of that series or a default with respect to a covenant or provision of the Indenture which cannot be amended without the consent of such Holder.

    The Notes are issuable only in registered form without coupons in denominations of $2,000 and integral
      multiples of $1,000 in excess thereof.  The Notes shall be initially issued in the form of a Global Security.  All payments of principal of (and premium, if any) and interest on the Notes will be made to the Trustee so long as the Notes are in the
      form of a Global Security.  As provided in the Indenture and subject to certain limitations therein set forth, the Notes are exchangeable for a like aggregate principal amount of Notes as requested by the Holder surrendering the same.  If (x) the
      Depositary is at any time unwilling or unable to continue as depository and a successor depository is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such ineligibility, (y) the Company delivers
      to the Trustee a Company Order to the effect that this Note shall be exchangeable or (z) an Event of Default has occurred and is continuing with respect to the Notes, this Note shall be exchangeable for Notes in definitive form and in an equal
      aggregate principal amount.  Such definitive Notes shall be registered in such name or names as the Depositary shall instruct the Trustee.

    As provided in the Indenture and subject to certain limitations set forth therein and above, the
      transfer of this Note may be registered on the Security Register of the Company, upon surrender of this Note for registration of transfer at the office or agency of the Company in the Borough of Manhattan, The City of New York, duly endorsed by, or
      accompanied by a written instrument of transfer in form satisfactory to the Company duly executed by, the Holder hereof or by his attorney duly authorized in writing, and thereupon one or more new Notes of authorized denominations and for the same
      aggregate principal amount will be issued to the designated transferee or transferees.

    No reference herein to the Indenture and no provisions of this Note or of the Indenture shall alter or
      impair the obligation of the Company, which is absolute and unconditional, to pay the principal of (and premium, if any) and interest on this Note at the time, place and rate, and in the coin or currency, herein and in the Indenture prescribed.

    No service charge shall be made for any such registration of transfer or exchange, but the Company may
      require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

    Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any
      agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by
      notice to the contrary.

    Certain of the Company’s obligations under the Indenture with respect to Notes may be terminated if the
      Company irrevocably deposits with the Trustee money or Government Obligations sufficient to pay and discharge the entire indebtedness on all Notes, as provided in the Indenture.

    No recourse shall be had for the payment of the principal of (and premium, if any), or the interest, if
      any, on this Note, or for any claim based thereon, or upon any obligation, covenant or agreement of the Company in the Indenture, against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or of any
      successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment of penalty or otherwise; and all such personal liability is expressly released and waived as a condition of, and as part of
      the consideration for, the issuance of this Note.

    The Indenture and the Notes shall be governed by and construed in accordance with the laws of the State
      of New York. 

    
      
        

    

    

    

    ASSIGNMENT/TRANSFER FORM

    FOR VALUE RECEIVED the undersigned registered Holder hereby sell(s), assign(s) and transfer(s) unto (insert Taxpayer Identification
        No.)_________________________________________________________________________________________________________    

              ________________________________________________________________________________________________________________        

                                                (Please print or typewrite name and address including postal zip code of assignee)

        the within Note and all rights thereunder, hereby irrevocably constituting and appointing_______________________________________

         __________________________________________________________________________________________attorney to transfer said 

        Note on the books of the Company with full power of substitution in the premises.

            

      

                _________________________________________________

      

    Date:  __________________

      

     

      

    NOTICE:  The signature of the registered Holder to this assignment must correspond with the name as written upon the face of the within instrument in every particular,
        without alteration or enlargement or any change whatsoever.

      

    

    
      
        

    

    OPTION OF HOLDER TO ELECT PURCHASE

    If you elect to have this Note purchased by the Company pursuant to Section 1109 of the Indenture, check
      this box:  ◻

    If you want to elect to have only part of this Note purchased by the Company pursuant to Section 1109 of
      the Indenture, state the amount in principal amount (must be integral multiple of $1,000):  $____________________________________________

    Date: __________ Your Signature _________________________________________________

                       (Sign exactly as your name appears on the other side of the Security)

    

    

    Signature Guarantee: ____________________________________________________________

    (Signature must be guaranteed)

    The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan
      associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15.EX-4.2

 EXHIBIT 4.2 

DESCRIPTION OF THE REGISTRANT’S COMMON STOCK REGISTERED 

PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934 

As of December 31, 2019, CBM Bancorp, Inc. had one class of securities registered under Section 12 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”): our common stock. 
 The following description of our common stock is a summary and does
not purport to be complete. It is subject to and qualified in its entirety by reference to our articles of incorporation and our bylaws, each of which is an exhibit to the Annual Report on Form 10-K of which
this Exhibit 4.2 is a part. We encourage you to read our articles of incorporation, our bylaws and the applicable provisions of the Maryland General Corporation Law for additional information. 

Authorized Capitalization 
 Our authorized
capital stock consists of: 
  

	 	•	 	 24,000,000 shares of common stock, par value $4.00 per share; and 

 

	 	•	 	 1,000,000 shares of serial preferred stock, par value $1.00 per share. 

Our board of directors may issue shares of our common stock from time to time for such consideration as the board may deem advisable without
further stockholder approval, subject to the maximum number of authorized shares provided in our articles of incorporation. Our common stock is non-withdrawable capital, is not an insurable account and is not
insured by the FDIC. 
 Description of Common Stock 

Dividends. CBM Bancorp may pay dividends on its common stock if, after giving effect to such dividends, it would be able to pay
its debts in the usual course of business and its total assets would exceed the sum of its total liabilities plus the amount needed to satisfy the preferential rights upon dissolution of stockholders whose preferential rights on dissolution are
superior to those receiving the dividends. However, even if CBM Bancorp’s assets are less than the amount necessary to satisfy the requirement set forth above, CBM Bancorp may pay dividends from: its net earnings for the fiscal year in which
the distribution is made; its net earnings for the preceding fiscal year; or the sum of its net earnings for the preceding eight fiscal quarters. The payment of dividends by CBM Bancorp is also subject to limitations that are imposed by applicable
regulation, including restrictions on payments of dividends that would reduce CBM Bancorp’s assets below the then-adjusted balance of its liquidation account. The holders of common stock of CBM Bancorp will be entitled to receive and share
equally in dividends as may be declared by our board of directors out of funds legally available therefor. If CBM Bancorp issues shares of preferred stock, the holders thereof may have a priority over the holders of the common stock with respect to
dividends. 
 Voting Rights. The holders of common stock of CBM Bancorp have exclusive voting rights in CBM Bancorp.
They elect CBM Bancorp’s board of directors and act on other matters as are required to be presented to them under Maryland law or as are otherwise presented to them by the board of directors. Generally, each holder of common stock is entitled
to one vote per share and does not have any right to cumulate votes in the election of directors. Any person who beneficially owns more than 10% of the then-outstanding shares of CBM Bancorp’s common stock, however, will not be entitled or
permitted to vote any shares of common stock held in excess of the 10% limit. If CBM Bancorp issues shares of preferred stock, holders of the preferred stock may also possess voting rights. Certain matters require the approval of two-thirds of the voting power of our outstanding common stock. 
 Corporate powers and control of
Chesapeake Bank of Maryland, as a federal stock savings bank, are vested in its board of directors, who elect the officers of Chesapeake Bank of Maryland and who fill any vacancies on the board of directors. Voting rights of Chesapeake Bank of
Maryland are vested exclusively in the owners of the shares of capital stock of Chesapeake Bank of Maryland, which will be CBM Bancorp, and are voted at the direction of CBM Bancorp’s board of directors. Consequently, the holders of the common
stock of CBM Bancorp have no direct control of Chesapeake Bank of Maryland. 

 Liquidation. In the event of any liquidation, dissolution or winding up of
Chesapeake Bank of Maryland, CBM Bancorp, as the holder of 100% of Chesapeake Bank of Maryland’s capital stock, would be entitled to receive all assets of Chesapeake Bank of Maryland available for distribution, after payment or provision for
payment of all debts and liabilities of Chesapeake Bank of Maryland, including all deposit accounts and accrued interest thereon, and after distribution of the balance in the liquidation account to Eligible Account Holders. In the event of
liquidation, dissolution or winding up of CBM Bancorp, the holders of its common stock would be entitled to receive, after payment or provision for payment of all its debts and liabilities (including payments with respect to its liquidation
account), all of the assets of CBM Bancorp available for distribution. If preferred stock is issued, the holders thereof may have a priority over the holders of the common stock in the event of liquidation or dissolution. 

Preemptive Rights. Holders of the common stock of CBM Bancorp will not be entitled to preemptive rights with respect to any
shares that may be issued. The common stock is not subject to redemption. 
 Dissenters’ Rights of Appraisal. Under the
articles of incorporation, CBM Bancorp stockholders are not entitled to dissenters’ rights of appraisal in the event of a merger or consolidation of CBM Bancorp with another corporation unless the board of directors determines by a resolution
approved by a majority of directors then in office that dissenters’ rights shall apply to all or any classes of stock. 

Exclusive Forum Provision. Our articles of incorporation provide that, unless we consent in writing to the selection of an
alternative forum, any state or federal court located within the State of Maryland, in all cases subject to the court’s having personal jurisdiction over the indispensable parties named as defendants, shall be the sole and exclusive forum for
certain types of actions and proceedings that may be initiated by our stockholders with respect to our Company, our directors, our officers or our other employees. 

Restrictions On Acquisition Of CBM Bancorp, Inc. 

The following discussion is a general summary of the material provisions of Maryland law, CBM Bancorp’s articles of incorporation and
bylaws, Chesapeake Bank of Maryland’s charter and certain other regulatory provisions that may be deemed to have an “anti-takeover” effect. The following description is necessarily general and is not intended to be a complete
description of the document or regulatory provision in question. 
 Maryland Law and Articles of Incorporation and Bylaws of CBM Bancorp 

Maryland law, as well as CBM Bancorp’s articles of incorporation and bylaws, contain a number of provisions relating to corporate
governance and rights of stockholders that may discourage future takeover attempts. As a result, stockholders who might desire to participate in such transactions may not have an opportunity to do so. In addition, these provisions will also render
the removal of the board of directors or management of CBM Bancorp more difficult. 
 Directors. The board of directors is
divided into three classes. The members of each class are elected for a term of three years and only one class of directors will be elected annually. Thus, it would take at least two annual elections to replace a majority of the board of directors.
The bylaws establish qualifications for board members, including restrictions on affiliations with competitors of Chesapeake Bank of Maryland. Further, the bylaws impose notice and information requirements in connection with the nomination by
stockholders of candidates for election to the board of directors or the proposal by stockholders of business to be acted upon at an annual meeting of stockholders. Such notice and information requirements are applicable to all stockholder business
proposals and nominations, and are in addition to any requirements under the federal securities laws. 
 Restrictions on Calling
Special Meetings. The articles of incorporation and bylaws provide that special meetings of stockholders can be called by the president, the chairman, by a majority of the whole board of directors or upon the written request of stockholders
entitled to cast at least a majority of all votes entitled to vote at the meeting. 
 Prohibition of Cumulative Voting. The
articles of incorporation prohibit cumulative voting for the election of directors. 

  
 2 

 Limitation of Voting Rights. The articles of incorporation provide that in no
event will any person who beneficially owns more than 10% of the then-outstanding shares of common stock, be entitled or permitted to vote any of the shares of common stock held in excess of the 10% limit. 

Restrictions on Removing Directors from Office. The articles of incorporation provide that directors may be removed only for
cause, and only by the affirmative vote of the holders of at least two-thirds of the voting power of all of CBM Bancorp’s then-outstanding common stock entitled to vote (after giving effect to the
limitation on voting rights discussed above in “—Limitation of Voting Rights”). 
 Authorized but Unissued Shares.
CBM Bancorp has authorized but unissued shares of common and preferred stock. The articles of incorporation authorize 25,000,000 shares of stock, including 1,000,000 shares of serial preferred stock. In addition, the articles of
incorporation authorize the board of directors to amend the charter, without stockholder approval, to increase or decrease the aggregate number of authorized shares of stock or the number of authorized shares of any class of stock. CBM Bancorp is
authorized to issue preferred stock from time to time in one or more series subject to applicable provisions of law, and the board of directors is authorized to fix the designations, and relative preferences, limitations, voting rights, if any,
including without limitation, offering rights of such shares (which could be multiple or as a separate class). In the event of a proposed merger, tender offer or other attempt to gain control of CBM Bancorp that the board of directors does not
approve, it may be possible for the board of directors to authorize the issuance of a series of preferred stock with rights and preferences that would impede the completion of the transaction. An effect of the possible issuance of preferred stock
therefore may be to deter a future attempt to gain control of CBM Bancorp. 
 Amendments to Articles of Incorporation and Bylaws.
Amendments to the articles of incorporation must be approved by the board of directors and by the affirmative vote of at least two-thirds of the outstanding shares of common stock, or by the
affirmative vote of a majority of the outstanding shares of common stock if at least two-thirds of the members of the board of directors approve such amendment. 

The articles of incorporation also provide that the bylaws may be amended by the affirmative vote of a majority of CBM Bancorp’s
directors or by the affirmative vote of at least two-thirds of the votes eligible to be cast in the election of directors. 

Business Combinations. Under Maryland law, “business combinations” between a Maryland corporation and an interested
stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation,
statutory share exchange or, in circumstances specified in the statute, certain transfers of assets, certain stock issuances and transfers, liquidation plans and reclassifications involving interested stockholders and their affiliates or issuance or
reclassification of equity securities. Maryland law defines an interested stockholder as: (i) any person who beneficially owns 10% or more of the voting power of a corporation’s voting stock after the date on which the corporation had 100
or more beneficial owners of its stock; or (ii) an affiliate or associate of the corporation at any time after the date on which the corporation had 100 or more beneficial owners of its stock who, within the two-year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then-outstanding voting stock of the corporation. A person is not an interested stockholder under the
statute if the board of directors approved in advance the transaction by which the person otherwise would have become an interested stockholder. However, in approving a transaction, the board of directors may provide that its approval is subject to
compliance, at or after the time of approval, with any terms and conditions determined by the Board. 
 After the five-year prohibition, any
business combination between the Maryland corporation and an interested stockholder generally 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 shares of voting stock of the corporation; and (ii) two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the
interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder. These super-majority vote requirements do not apply if the corporation’s
common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares. 

  
 3 

 Control Share Acquisitions. The Maryland General Corporation Law provides that
“control shares” of a Maryland corporation acquired in a “control share acquisition” have no voting rights except to the extent approved by a vote of two-thirds of the shares entitled to be
voted on the matter, excluding shares of stock owned by the acquiror 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 acquiror, or in respect of which the acquiror is able to exercise or direct the exercise of voting power except solely by virtue of a revocable proxy, would entitle the acquiror to exercise voting power in electing
directors within one of the following ranges of voting power: 
  

	 	•	 	 one-tenth or more but less than
one-third; 

  

	 	•	 	 one-third or more but less than a majority; or 

 

	 	•	 	 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 for shares acquired through descent or distribution, in satisfaction of a pledge or in a merger, consolidation or share exchange
to which the corporation is a party. The control share acquisition statute applies to any Maryland corporation with 100 or more beneficial owners of its stock other than a close corporation or an investment company. 

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. 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 for those 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, if voting rights for control shares are approved at a stockholders’ meeting and the acquiror becomes entitled to exercise or direct the exercise of a majority or more of all voting power, other stockholders may exercise appraisal
rights. The fair value of the shares as determined for purposes of such appraisal rights may not be less than the highest price per share paid by the acquiror in the control share acquisition. The foregoing provisions may be modified by a Maryland
corporation’s charter or bylaws. 
 Although our bylaws provide that the Maryland Control Share Acquisition law will be inapplicable to
acquisitions of the Company’s common stock, this bylaw provision may be repealed at any time by a majority vote of the whole board of directors, in whole or in part, at any time, whether before or after a control share acquisition and may be
applied to any prior or subsequent control share acquisition. 
 Evaluation of Offers. The articles of incorporation of CBM
Bancorp provide that its board of directors, when evaluating a transaction that would or may involve a change in control of CBM Bancorp (whether by purchases of its securities, merger, consolidation, share exchange, dissolution, liquidation, sale of
all or substantially all of its assets, proxy solicitation or otherwise), may, in connection with the exercise of its business judgment in determining what is in the best interests of CBM Bancorp and its stockholders and in making any recommendation
to the stockholders, give due consideration to all relevant factors, including, but not limited to, certain enumerated factors, including (I) the economic effect, both immediate and long-term, upon CBM Bancorp’s stockholders, including
stockholders, if any, choosing not to participate in the transaction; (2) the effects, including any social and economic effects, on the employees, suppliers, creditors, depositors and customers of, and others dealing with, CBM Bancorp
and its subsidiaries and on the communities in which CBM Bancorp and its subsidiaries operate or are located; (3) whether the proposal is acceptable based on the historical and current operating results or financial condition of CBM
Bancorp; (4) whether a more favorable price could be obtained for CBM Bancorp’s stock or other securities in the future; (5) the reputation and business practices of the offeror and its management and affiliates as they
would affect the employees; (6) the future value of the stock or any other securities of CBM Bancorp; and (7) any anti-trust or other legal and regulatory issues that are raised by the proposal. 

  
 4 

 Purpose and Anti-Takeover Effects of CBM Bancorp’s Articles of Incorporation and
Bylaws. Our board of directors believes that the provisions described above are prudent and will reduce our vulnerability to takeover attempts and certain other transactions that have not been negotiated with and approved by our board of
directors. These provisions also will assist us in the orderly deployment of the offering proceeds into productive assets during the initial period after the conversion. We believe these provisions are in the best interests of CBM Bancorp and its
stockholders. Our board of directors believes that it will be in the best position to determine the true value of CBM Bancorp and to negotiate more effectively for what may be in the best interests of all our stockholders. Accordingly, our board of
directors believes that it is in the best interests of CBM Bancorp and all of our stockholders to encourage potential acquirers to negotiate directly with the board of directors and that these provisions will encourage such negotiations and
discourage hostile takeover attempts. It is also the view of our board of directors that these provisions should not discourage persons from proposing a merger or other transaction at a price reflective of the true value of CBM Bancorp and that is
in the best interests of all our stockholders. 
 Takeover attempts that have not been negotiated with and approved by our board of
directors present the risk of a takeover on terms that may be less favorable than might otherwise be available. A transaction that is negotiated and approved by our board of directors, on the other hand, can be carefully planned and undertaken at an
opportune time in order to obtain maximum value for our stockholders, with due consideration given to matters such as the management and business of the acquiring corporation. 

Although a tender offer or other takeover attempt may be made at a price substantially above the current market price, such offers are
sometimes made for less than all of the outstanding shares of a target company. As a result, stockholders may be presented with the alternative of partially liquidating their investment at a time that may be disadvantageous, or retaining their
investment in an enterprise that is under different management and whose objectives may not be similar to those of the remaining stockholders. 

Despite our belief as to the benefits to stockholders of these provisions of CBM Bancorp’s articles of incorporation and bylaws, these
provisions also may have the effect of discouraging a future takeover attempt that would not be approved by our board of directors, but pursuant to which stockholders may receive a substantial premium for their shares over then current market
prices. As a result, stockholders who might desire to participate in such a transaction may not have any opportunity to do so. Such provisions will also make it more difficult to remove our board of directors and management. Our board of directors,
however, has concluded that the potential benefits outweigh the possible disadvantages. 
 Charter of Chesapeake Bank of Maryland 

Chesapeake Bank of Maryland’s charter provides that for a period of five years from the closing of the conversion and offering, no person
other than CBM Bancorp may offer directly or indirectly to acquire the beneficial ownership of more than 10% of any class of equity security of Chesapeake Bank of Maryland. This provision does not apply to any
tax-qualified employee benefit plan of Chesapeake Bank of Maryland or CBM Bancorp or to underwriters in connection with a public offering. In addition, during this five-year period, all shares owned over the
10% limit may not be voted on any matter submitted to stockholders for a vote. 
 Federal Conversion Regulations 

Federal Reserve Board regulations prohibit any person from making an offer, announcing an intent to make an offer or participating in any other
arrangement to purchase stock or acquire stock or subscription rights in a converting institution or its holding company from another person prior to completion of its conversion. Further, without the prior written approval of the Federal Reserve
Board, no person may make an offer or announcement of an offer to purchase shares or actually acquire shares of a converted institution or its holding company for a period of three years from the date of the completion of the conversion if, upon the
completion of such offer, announcement or acquisition, the person would become the beneficial owner of more than 10% of the outstanding stock of the institution or its holding company. The Federal Reserve Board has defined “person” to
include any individual, group acting in concert, corporation, partnership, association, joint stock company, trust, unincorporated organization or similar company, a syndicate or any other group formed for the purpose of acquiring, holding or
disposing of securities of an insured institution. However, offers made exclusively to a bank or its holding company, or to an underwriter or member of a selling group acting on the converting institution’s or its holding company’s behalf
for resale to the general public, are excepted. The regulation also provides civil penalties for willful violation or assistance in any such violation of the regulation by any person connected with the management of the converting institution or its
holding company or who controls more than 10% of the outstanding shares or voting rights of a converted institution or its holding company. 

  
 5 

 Change in Control Law and Regulations 

Under the Change in Bank Control Act, no person may acquire control of a federal savings association or its parent holding company unless the
Office of the Comptroller of the Currency or the Federal Reserve Board, respectively, has been given 60 days’ prior written notice and has not issued a notice disapproving the proposed acquisition. In addition, under the Bank Holding Company
Act and the Federal Reserve Board’s regulations, no company may acquire control of a savings association without the prior approval of the Federal Reserve Board. In their review of notices and applications under these statutes, the Office of
the Comptroller of the Currency and the Federal Reserve Board take into consideration certain factors, including the financial and managerial resources of the acquirer and the competitive effects of the acquisition. 

Control, as defined under federal law, means ownership, control of or holding irrevocable proxies representing more than 25% of any class of
voting stock, control in any manner of the election of a majority of the company’s directors, or a determination by the Federal Reserve Board that the acquirer has the power to direct, or directly or indirectly exercise a controlling influence
over, the management or policies of the institution. Acquisition of more than 10% of any class of a savings’ and loan holding company’s voting stock constitutes a rebuttable determination of control under the regulations under certain
circumstances including where, as will be the case with CBM Bancorp, the issuer has registered securities under Section 12 of the Securities Exchange Act of 1934. Federal Reserve Board regulations provide that parties seeking to rebut control
will be provided an opportunity to do so in writing. 

  
 6

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