Document:

Exhibit 4.2

 

DESCRIPTION OF THE COMMUNITY FINANCIAL
CORPORATION’S COMMON STOCK

REGISTERED UNDER SECTION 12 OF THE SECURITIES
EXCHANGE ACT OF 1934

 

Wellesley Bancorp, Inc. (the “Company”)
is incorporated in the State of Maryland. The rights of our shareholders are generally covered by Maryland law and our articles
of incorporation and bylaws (each as amended and in effect on the date hereof). The terms of our common stock are therefore subject
to Maryland law, including the Maryland General Corporation Law, and the common and constitutional law of Maryland.

 

This exhibit describes the general terms
of our common stock. This is a summary and does not purport to be complete. Our articles of incorporation and bylaws as they exist
on the date of this Annual Report on Form 10-K are incorporated by reference or filed as an exhibit to the Annual Report on Form
10-K of which this exhibit is a part, and amendments or restatements of each will be filed with the Securities and Exchange Commission
(the “SEC”) in future periodic or current reports in accordance with the rules of the SEC. You are encouraged to read
these documents.

 

For more detailed information about the
rights of our common stock, you should refer to our articles of incorporation and bylaws and the applicable provisions of Maryland
law, including the Maryland General Corporation Law (the “MGCL”), for additional information.

 

General 

 

The Company is authorized to issue fourteen
million (14,000,000) shares of common stock having a par value of $.01 per share and one million (1,000,000) shares of
preferred stock having a par value of $.01 per share.

 

The Company’s common stock is currently
listed for quotation on the Nasdaq Capital Market under the symbol “WEBK.”

 

Common Stock 

 

Dividends. The holders of
common stock of Wellesley Bancorp, Inc. will be entitled to receive and share equally in dividends as may be declared by the board
of directors of the Company out of funds legally available for dividends. If the Company issues preferred stock, the holders of
the preferred stock may have a priority over the holders of the common stock with respect to dividends.

 

Voting Rights. Because
there are no issued and outstanding shares of the Company’s preferred stock, the holders of the Company’s common
stock have exclusive voting rights in the Company. They elect the Company’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 Company’s
board. Generally, each holder of the Company’s common stock is entitled to one vote per share and will not have any
right to cumulate votes in the election of directors. If the Company issues preferred stock, holders of Wellesley Bancorp
preferred stock may also possess voting rights.

 

     

     

    

 

The Company’s articles of incorporation
provide that in no event will any record owner of any outstanding common stock which is beneficially owned, directly or indirectly,
by a person who, as of any record date for the determination of stockholders entitled to vote on any matter, beneficially owns
in excess of 10% of the then-outstanding shares of common stock, be entitled, or permitted to any vote in respect of the shares
held in excess of the limit. This limitation does not apply to any director or officer acting solely in their capacities as directors
and officers, or any employee benefit plans of the Company or any subsidiary or a trustee of a plan.

 

The Company can generally amend or
repeal provisions of the articles of incorporation as prescribed by the MGCL without action of the stockholders (if no such
stockholder approval is required for the proposed amendment or repeal under the MGCL). Notwithstanding the foregoing, the
articles of incorporation provide that certain amendments to the articles of incorporation relating to a change in control of
the Company and certain other corporate actions must be approved by at least 75% of the outstanding shares entitled to
vote.

 

Our articles of incorporation provide that
our bylaws may not be adopted, repealed, altered, amended or rescinded by stockholders except by the affirmative vote of the holders
of at least 75% of the voting stock.

 

Liquidation. If there is any
liquidation, dissolution or winding up of Wellesley Bank, the Company, as the sole holder of Wellesley Bank’s capital stock,
would be entitled to receive all of Wellesley Bank’s assets available for distribution after payment or provision for payment
of all debts and liabilities of Wellesley Bank, including all deposit accounts and accrued interest. Upon liquidation, dissolution
or winding up of the Company, the holders of its common stock would be entitled to receive all of the assets of the Company available
for distribution after payment or provision for payment of all its debts and liabilities. If the Company issues preferred stock,
the preferred stock holders may have a priority over the holders of the common stock upon liquidation or dissolution.

 

Preemptive Rights; Redemption. Holders
of the common stock of the Company will not be entitled to preemptive rights with respect to any shares that may be issued. The
common stock cannot be redeemed.

 

Certain Charter and Bylaw Provisions Affecting Stock

 

Our articles of incorporation contain several
provisions that may make the Company a less attractive target for an acquisition of control by anyone who does not have the support
of the Company’s board of directors. Such provisions include, among other things, the requirement of a supermajority vote
of stockholders to approve certain amendments to the articles of incorporation relating to a change in control and certain other
corporate actions, several special procedural rules, and a staggered board of directors.

 

Preferred Stock 

 

Preferred stock may be issued with designations,
powers, preferences and rights as the board of directors may from time to time determine. The board of directors can, without stockholder
approval, issue preferred stock with voting, dividend, liquidation and conversion rights that could dilute the voting strength
of the holders of the common stock and may assist management in impeding an unfriendly takeover or attempted change in control.Exhibit
10.10

 

SETTLEMENT AGREEMENT

 

This Settlement Agreement
(the “Agreement”) is entered into as of March 23, 2020, by and among LOUIS CROSIER (“Executive”),
WELLESLEY BANK (the “Bank”), WELLESLEY BANCORP, INC. (“Wellesley”), CAMBRIDGE
TRUST COMPANY (“CTC”), and CAMBRIDGE BANCORP (“Cambridge”) (collectively the “Parties”).

 

WITNESSETH:

 

WHEREAS, Executive
commenced employment with the Bank as President of Wellesley Investment Partners, LLC under the terms and conditions set forth
in an offer letter dated September 3, 2014 (the “Offer Letter”); and

 

WHEREAS, Item
10 of the Offer Letter provides for a Change in Control Bonus upon the sale of Wellesley Investment Partners, LLC; and

 

WHEREAS, the
Bank, Wellesley, CTC and Cambridge entered into an Agreement and Plan of Merger dated as of December 5, 2019 (the “Merger
Agreement”), whereby Wellesley will merge with and into Cambridge and the Bank will merge with and into CTC (collectively,
the “Transaction”), and the date the Transaction closes is hereby defined as the “Closing Date”;
and

 

WHEREAS, it
is not clear that Executive is entitled to receive a Change in Control Bonus under the Offer Letter in connection with the Transaction,
but the Parties desire to hereby settle the value and conditions of Executive’s entitlement to a Change in Control Bonus
under the Offer Letter; and

 

WHEREAS, concurrently
with the execution and delivery of this Agreement, Executive is simultaneously executing the offer letter and the Employee Proprietary
Information and Restrictive Covenants Agreement with CTC, attached hereto as Exhibit A (“Cambridge Offer”),
which shall become effect upon, and subject to the occurrence of, the consummation of the Transaction.

 

NOW THEREFORE,
in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the Parties agree as follows:

 

1.           
Settlement of Change in Control Bonus Amount.

 

1.1            
Change in Control Bonus Amount. On the Closing Date, in consideration for Executive entering into this Agreement
and abiding by its terms, the Bank shall pay Executive a lump-sum cash amount equal to $250,000 (the “Change in
Control Bonus Amount”), less applicable withholdings.

 

1.2             Complete
Satisfaction. Executive agrees that the full payment of the Change in Control Bonus Amount, as determined in accordance Section
1.1, shall be in complete satisfaction of amounts due and owing Executive under Item 10 of the Offer Letter, and
Executive shall have no further rights to a bonus payment under the Offer Letter in the event of subsequent transaction that
may give rise to a change in ownership of Wellesley Investment Partners, LLC.

 

     

     

    

 

For the avoidance of
doubt, the payment of the Change in Control Bonus Amount under this Agreement shall not release the Bank, Wellesley, Cambridge
or CTC, as applicable, from any of the following obligations: (a) obligations to pay to Executive accrued but unpaid wages
earned up to the Closing Date; (b) the payment of any of Executive’s vested benefits under the tax-qualified and non-qualified
plans of the Bank or Wellesley, including any benefits that become vested as a result of the Transaction; (c) obligations
regarding accelerated vesting of equity awards, if any, under any equity awards granted by Wellesley to Executive and outstanding
immediately prior to the Closing Date; (d) the payment of the Merger Consideration with respect to Executive’s common
stock of Wellesley as contemplated by the Merger Agreement; or (e) rights to indemnification under applicable corporate law,
the organizational documents of the Bank or Wellesley, as an insured under any director’s and officer’s liability insurance
policy new or previously in force, or pursuant to the Merger Agreement.

 

2.           
Code Section 409A Compliance. The intent of the parties is that payments under this Agreement either be exempt
from or comply with Code Section 409A and the Treasury Regulations and guidance promulgated thereunder, and accordingly, to the
maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.

 

3.           
Restrictive Covenant 

 

3.1             
Executive agrees that for the period of his employment with the Bank and any successor
to the Bank or Wellesley and for twelve (12) months after the date his employment ends for any reason, including but not limited
to voluntary or involuntary termination, Executive will not, either directly or through others: (a) solicit or attempt to solicit
any employee of the Bank or Wellesley or any successor to the Bank or Wellesley, with whom Executive had contact or whose identity
Executive learned as a result of his employment, to end his relationship with the Bank or Wellesley, or any successor to the Bank
or Wellesley; or (b) solicit any consultant, contractor, strategic partner, or customer of the Bank or Wellesley or any successor
to the Bank or Wellesley with whom Executive had contact or whose identity Executive learned as a result of his employment (which,
for the avoidance of doubt, shall not include any person or entity included in any client or similar list in Executive’s
possession as of the date of this Agreement), to diminish or materially alter his/her/its relationship with the Bank or Wellesley.

 

3.2             
The Parties agree that for purposes of this Agreement, a customer is any person or entity (a) to which the Bank or
Wellesley or any successor to the Bank or Wellesley has provided goods or services at any time during the twelve (12) months prior
to the end of his employment; or (b) that has been actively sought by the Bank or Wellesley or any successor to the Bank or Wellesley
regarding the prospect of the Bank or Wellesley or any successor of the Bank or Wellesley providing goods or services to such person
or entity during the twelve (12) months prior to the end of my employment. Immediately following the Closing Date, CTC and Cambridge
will be successors to the Bank and Wellesley, respectively.

 

3.3              Notwithstanding
the immediately foregoing paragraph, in the event Executive’s employment ends for any reason, voluntarily or
involuntarily (other than as a result of Executive’s termination for Cause (as defined in the Cambridge Offer, attached
hereto as Exhibit A), on or following the second anniversary of the Effective Date (as defined in the Cambridge Offer,
attached hereto as Exhibit A), the definition of “customer” for purposes of this Agreement shall expressly
exclude the customers set forth on the schedule attached to Exhibit A hereto, as Schedule 1.

 

     

     

    

 

3.4             
Nothing in this Agreement shall prohibit Executive from soliciting his immediate
family members or any entities that are wholly owned by Executive and/or his immediate family members.

 

4.           
General.

 

4.1             
Heirs, Successors, and Assigns. The terms of this Agreement shall be binding upon the Parties hereto and their
respective heirs, successors, assigns and legal representatives.

 

4.2             
Final Agreement. This Agreement represents the entire understanding of the Parties with respect to the subject
matter hereof and supersedes all prior understandings, written or oral. The terms of this Agreement may be changed, modified, or
discharged only by an instrument in writing signed by each of the Parties hereto.

 

4.3             
Withholdings. The Bank may withhold from any amounts payable under this Agreement such federal, state, or
local taxes as may be required to be withheld pursuant to applicable law or regulation.

 

4.4             
Governing Law. This Agreement shall be construed, enforced, and interpreted in accordance with and governed
by the laws of the Commonwealth of Massachusetts, without reference to its principles of conflicts of law, except to the extent
that federal law shall be deemed to preempt such state laws.

 

4.5             
Voluntary Action and Waiver. Executive acknowledges that by his free and voluntary act of signing below, Executive
agrees to all of the terms of this Agreement and intends to be legally bound thereby. Executive acknowledges that he has been advised
to consult with an attorney prior to executing this Agreement.

 

4.6             
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to
be an original but all of which together shall constitute one and the same instrument.

 

4.7             
Regulatory Limitations. Notwithstanding any other provision of this Agreement, the Bank shall not be obligated
to make, and Executive shall have no right to receive, any payment under this Agreement which would violate any law, regulation,
or regulatory order applicable to the Parties at the time such payment is due, including, without limitation, Section 1828(k)(1)
of Title 12 of the United States Code and any regulation or order thereunder of the Federal Deposit Insurance Corporation.

 

5.           Breach
of Agreement. The Bank and Executive expressly agree that in an action brought to enforce this Agreement, the
prevailing part(ies) shall be entitled to recover from the opposing part(ies) reasonable attorneys’ fees and costs
incurred in enforcing any provision of or any right contained in this Agreement, unless specifically prohibited by statute or
regulation, as well as any and all remedies available at law.

 

[SIGNATURE PAGE FOLLOWS]

 

     

     

    

 

IN WITNESS WHEREOF, the Parties have
caused this Agreement to be executed by their duly authorized officers, and Executive has signed this Agreement, effective as of
the date first above written.

 

	 	EXECUTIVE:
	 	 
	 	/s/ Louis Crosier
	 	      Louis Crosier    
	 	 
	 	WELLESLEY BANCORP, INC.
	 	 
	 	By:       /s/ Thomas Fontaine
	 	Name:   Thomas Fontaine
	 	Title:     President and Chief Executive Officer
	 	 
	 	WELLESLEY BANK
	 	 
	 	By:        /s/ Thomas Fontaine
	 	Name:   Thomas Fontaine
	 	Title:     President and Chief Executive Officer
	 	 
	 	CAMBRIDGE BANCORP
	 	 
	 	By:        /s/ Denis K. Sheahan
	 	Name:   Denis K. Sheahan
	 	Title:     Chairman and Chief Executive Officer
	 	 
	 	CAMBRIDGE TRUST COMPANY
	 	 
	 	By:        /s/ Denis K. Sheahan
	 	Name:   Denis K. Sheahan
	 	Title:     Chairman
and Chief Executive Officer

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