Document:

catc-ex42_149.htm

 

Exhibit 4.2

CAMBRIDGE BANCORP

DESCRIPTION OF SECURITIES REGISTERED UNDER 

SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

The following description is a general summary of the terms of Cambridge Bancorp’s common stock. The description below does not purport to be complete and is subject to and qualified in its entirety by reference to our articles of organization and amended and restated by-laws, copies of which are filed as exhibits to this Annual Report on Form 10-K. All references to the “Company,” “we,” “us” and “our” refer to Cambridge Bancorp. 

General

Our articles of organization authorize us to issue 10,000,000 shares of common stock, par value $1.00 per share. 

Each share of our common stock has the same relative rights and is identical in all respects to each other share of our common stock.

Voting Rights

Holders of our common stock are entitled to one vote per share on each matter properly submitted to shareholders for their vote, including the election of directors. Holders of our common stock do not have the right to cumulate their votes for the election of directors. A plurality of votes cast, in person or represented by proxy, at the annual meeting and entitled to vote is required for the election of directors. Subject to certain limited exceptions, whenever any corporate action is to be taken by a vote of the shareholders, it will be authorized by the affirmative vote of a majority of the votes cast, in person or represented by proxy, at the meeting and entitled to vote thereon.

Liquidation Rights

The holders of our common stock, together with the holders of any class or series of stock entitled to participate with the holders of our common stock in the distribution of assets in the event of any liquidation, dissolution or winding-up of us, whether voluntary or involuntary, will be entitled to participate equally in the distribution of any of our assets remaining after we have paid, or provided for the payment of, all of our debts and liabilities.

Dividends

The holders of our common stock and any class or series of stock entitled to participate with the holders of our common stock are entitled to receive dividends declared by our board of directors out of any assets legally available for distribution. As a holding company, our ability to pay distributions is affected by the ability of our subsidiaries to pay dividends. The ability of our bank subsidiary, and our ability, to pay dividends in the future is, and could in the future be further, influenced by bank regulatory requirements and capital guidelines.

Miscellaneous

The holders of our common stock have no preemptive or conversion rights for any shares that may be issued. Our common stock is not subject to additional calls or assessments, and all shares of our common stock currently outstanding are fully paid and nonassessable. All shares of common stock will, when issued, be fully paid and nonassessable, which means that the full purchase price of the shares will have been paid and the holders of the shares will not be assessed any additional monies for the shares.

Certain Important Charter Provisions

Our amended and restated by-laws provide for the division of our board of directors into three classes of directors, each class as nearly as equal as possible, with each serving staggered terms. Except as otherwise provided 

 

 

in the articles of organization or the amended and restated by-laws, the amended and restated by-laws may be amended, altered or repealed in whole or in part, and new by-laws may be adopted, by a vote of the holders of a majority of the shares of common stock outstanding and entitled to vote. Although the directors may also amend, alter or repeal, in whole or in part, the amended and restated by-laws, any amendment, alteration or repeal of the amended and restated by-laws that affects the voting power of shareholders, other than action with respect to the applicable law regarding control share acquisitions, requires shareholder approval.

Additionally, our amended and restated by-laws provide that certain business combinations require the affirmative vote of (i) a majority of the disinterested directors if, at the time of the vote, distinterested directors constitute at least a majority of the board of directors, or (ii) the holders of at least the sum of (x) 66% of the outstanding shares of common stock that are beneficially owned by persons other than any Substantial Stockholder (as defined in the amended and restated by-laws), plus (y) the number of shares of common stock beneficially owned by such Substantial Stockholders.

Some of the foregoing provisions may have the effect of deterring hostile takeovers or delaying changes in control or management of us.

Since the terms of our articles of organization and amended and restated by-laws may differ from the general information we are providing, you should only rely on the actual provisions of our articles of organization and amended and restated by-laws. 

NASDAQ Stock Market Listing

Our common stock is traded on the NASDAQ Stock Market under the symbol “CATC.”

Transfer Agent and Registrar

The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company, LLC.catc-ex1030_293.htm

 

Exhibit 10.30

 

EXECUTION VERSION

 

Cambridge Bancorp

1336 Massachusetts Avenue

Cambridge, Massachusetts 02138

 

December 5, 2019

 

Thomas J. Fontaine 

Wellesley Bancorp, Inc.

40 Central Street 

Wellesley, MA 02482 

 

Dear Thomas:

 

As you know, Cambridge Bancorp ("Cambridge"), Cambridge Trust Company (the "Company''), Wellesley Bancorp, Inc. ("Wellesley") and Wellesley Bank have entered into negotiations for Cambridge's acquisition of Wellesley pursuant to an Agreement and Plan of Merger (such acquisition, the "Transaction" and any such agreement, the "Merger Agreement"). You are critical to Cambridge's desire to pursue and to consummate the Transaction. Accordingly, it is a material condition to Cambridge's willingness to complete the Transaction that you accept this offer of employment, and Cambridge is relying on your commitment to join and to continue with Cambridge and its subsidiaries after the consummation of the Transaction. 

The following terms and conditions of employment will completely replace and supersede any previous employment, compensation, change in control, or severance agreement executed between you and Wellesley or Wellesley Bank (including but not limited to the Employment Agreement by and among you, Wellesley and Wellesley Bank, dated March 27, 2018); provided, however, that nothing herein is intended to impact the terms and conditions of the Change in Control Agreement by and between Cambridge and you, delivered concurrently herewith (the "Change in Control Agreement"). Contingent on the successful consummation of the Transaction, the following terms and conditions of employment will become effective as of the "Effective Date" as defined in the Merger Agreement (the "Effective Date"). 

Commencing as of the Effective Date, I am pleased to offer you employment with the Company. You will serve as the Chief Banking Officer of the Company. The following areas will report to you directly, commercial services, branch banking, and small business. This letter confirms our offer of employment and includes details of the financial arrangements. 

Your office will be located in Wellesley, Massachusetts. You will report to Denis Sheahan, the Company's Chief Executive Officer. You will be expected to devote your full business time and attention to your duties and responsibilities on behalf of the Company. 

For your services, we will provide you with the following compensation and benefits, all of which shall be subject to all applicable taxes and withholdings. 

 

	
1.  
	
Base Salary. For your first year of employment with the Company, you will be paid a base salary at the annualized rate of $450,000. The base salary will be paid in accordance with our regular payroll practices. 

	
2.
	
Short-Term Incentive. Beginning in 2020 you will be eligible to receive an annual performance based short-term incentive (cash bonus) of 50% of your base salary (your "Target Incentive Opportunity") based upon achievement of targeted, agreed-upon goals, both Company-wide and individual. Your actual annual 

 

 

		
performance-based bonus shall be determined by the Company and may range from no payout for not achieving threshold performance to amounts in excess of the Target Incentive Opportunity for stretch performance up to 75% of your base salary. Any actual annual performance-based bonus earned by you for a calendar year will be paid or settled no later than March 15th of the following year. The cash bonus for 2020 will be pro-rated based on the effective date of the Transaction. 

	
3. 
	
Long-Term Incentive. Each year, beginning in 2020 you will be eligible to receive an annual equity award as determined by the Compensation Committee of the Board of Directors. Your annual target award will be $450,000 with a potential RSU payout ranges from 0% of target (threshold) to 200% of target (stretch). Results in between the threshold and stretch goals will be interpolated. The Long-Term Incentive award for 2020 will be pro-rated based on the effective date of the Transaction. 

	
4. 
	
Defined Contribution Supplemental Executive Retirement Plan (SERP). The Company will make a contribution of 10% of your base salary and cash bonus into a non-qualified deferred compensation plan account for your benefit. This benefit is subject to the execution of a SERP agreement subject to a one (1) year non-compete and non-solicitation provision, which is attached hereto. 

	
5. 
	
Benefits. You will be eligible to participate in the various employee benefit plans, programs, and arrangements that the Company may offer to similarly-situated employees from time to time, in accordance with the terms and conditions of those plans, programs, and arrangements. 

 

The foregoing describes the compensation that you will receive during your first year of employment with the Company, but this letter is not a contract or guarantee of employment for any particular period of time. At all times you will be an employee at will, which means that you and the Company are each free to terminate your employment at any time and for any or no reason. 

On or after the Effective Date, you will be presented with and asked to execute acknowledgements of receipt and/or agreements to be bound by various Company policies including, without limitation, our Code of Ethics and our Securities Trade and Insider Trading Policy. 

You agree that you will not, at any time during or after your employment by the Company, without the Company's prior consent, reveal or disclose to any person outside of the Company, or use for your own benefit or the benefit of any other person or entity, any confidential information concerning the business or affairs of the Company or its affiliates, or concerning the business or affairs of the Company or its affiliates, or concerning any of their customers, clients, or employees ("Confidential Information"). For purposes of this letter, Confidential information shall include, but shall not be limited to: financial information or plans; sales and marketing information or plans; business or strategic plans; salary, bonus, or other personnel information of any type; information concerning methods of operation; proprietary systems or software; legal or regulatory information; cost and pricing information or policies; information concerning new or potential products or markets; investment models, practices, procedures, strategies, or related information; research and/or analysis; and information concerning new or potential customers. Confidential Information shall not include information falling within the description of Confidential Information that already is available to the public through no unauthorized act of yours and salary, bonus, or other personnel information specific to you, nor should the paragraph be construed so as to interfere with your right to use your general knowledge, experience, memory, and skills, whenever or wherever acquired, in any future employment. Notwithstanding the foregoing, you may comply with legal process; provided however, that if you anticipate making such a disclosure to comply with legal process, you agree to provide the Company with ten (10) days advance written notice or, if such notice is not practicable under the circumstances, with as much written notices as is practicable. 

By accepting this offer of employment, you acknowledge that your continued employment with the Company is subject to a successful background check. 

 

 

 

Because Federal law requires that you provide us with documentation of your eligibility to work in the United States, this offer is conditioned upon your providing such documentation within three (3) business days of your commencing work. 

This offer is also conditioned upon your acceptance of the attached Employee Proprietary Information and Restrictive Covenants Agreement on or prior to the Effective Date (see the attached document). 

The interpretation, construction, and performance of this offer letter shall be governed by the laws of the Commonwealth of Massachusetts, excluding laws pertaining to conflicts of law. 

By accepting this offer of employment, you represent that you are not under any contractual or other obligation to any other person or entity that would prevent you from performing all of your duties and responsibilities to the Company. To indicate your acceptance of this offer, please sign and date this offer letter in the space below and return a copy to me by mail or email. 

In the event that the Transaction does not close, this offer letter will automatically terminate and have no further force or effect. 

 

* * * * *

 

 

 

 

 

Sincerely,

 

Pilar Pueyo 

Senior Vice President, Human Resources Director

 

I accept employment with Cambridge Trust Company on the terms and conditions stated above.

 

	
/s/ Thomas J. Fontaine 
	
 
	
12/5/19

	
Thomas J. Fontaine
	
 
	
Date

 

Attachment:

 

Cambridge Trust Company Employee Proprietary Information and Restrictive Covenants 
Agreement 

Change in Control Agreement 
SERP Agreement

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