Document:

2005 Supplemental Executive Retirement Plan

 EXHIBIT 10.3 
  
 

 
  
 GREATER BAY BANCORP

  
 2005 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	SECTION 1	  	PURPOSE	  	1
			
	SECTION 2	  	GENERAL PROVISIONS	  	1
			
	SECTION 3	  	BENEFITS	  	6
			
	SECTION 4	  	ADMINISTRATION	  	8
			
	SECTION 5	  	ADOPTION BY ASSOCIATED COMPANIES	  	11
			
	SECTION 6	  	MISCELLANEOUS	  	11

  

 i 

 GREATER BAY BANCORP 
 2005 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
  
 SECTION 1 
 PURPOSE 
  

The purpose of this Greater Bay Bancorp 2005 Supplemental Executive Retirement Plan (the “Plan”) is to provide retirement income benefits to
certain highly compensated employees of Greater Bay Bancorp and its Subsidiaries that supplement such employees’ Social Security benefits and benefits under the Greater Bay Bancorp 401(k) Plan and specified other employee benefit plans
maintained by the Employer. 
  
 SECTION 2 
 GENERAL PROVISIONS 
  
 2.1 Effective Date. The Plan is effective as of January 1, 2005. Amendments that may be made to the Plan from time to time shall apply to
individuals participating in this Plan who perform work as Employees after the effective date applicable to such amendments. 
  
 2.2 Defined Terms. The following words and phrases as used in this Plan shall have the following meanings: 
  
 (a) “Actuarial Equivalent” (or “Actuarially Equivalent”)
means a benefit having the same value as the benefit which such actuarial equivalent replaces, based upon option factors obtained by using the mortality table and discount rate used by the Company in accordance with FAS 87 in determining its cost of
benefits under this Plan at the time that the determination of value is made. 
  
 (b) “Associated Company” means any corporation, trade, or business which together with the Company is considered to be a member of a controlled group of corporations or under common control for purposes of
Sections 414(b) or (c) of the Code. 
  
 (c) “Board”
means the Board of Directors of Greater Bay Bancorp. 
  
 (d)
“Change in Control” means the first to occur of any of the following events: 
  
 (i) Any “person” (as such term is used in sections 13 and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), becomes the beneficial owner (as that term is used in
section 13(d) of the Exchange Act), directly or indirectly, of more than fifty percent (50%) of the capital stock of the Company entitled to vote in the election of directors, other than a group of two or more persons not (A) acting in concert for
the purpose of acquiring, holding or disposing of such stock or (B) otherwise required to file any form or report with any governmental agency or regulatory authority having jurisdiction over the Company which requires the reporting of any change in
control. The acquisition of additional stock by any person who immediately prior to such acquisition already is the beneficial owner of more than fifty percent (50%) of the capital stock of the Company entitled to vote in the election of directors
is not a Change in Control. 
  

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 (ii) During any period of not more than twelve (12) consecutive months during which the Company
continues in existence, not including any period prior to the effective date of this Plan, individuals who, at the beginning of such period, constitute the Board, and any new director (other than a director designated by a person who has entered
into an agreement with the Company to effect a transaction described in clause (i), (iii) or (iv) of this subsection 2.2(d)) whose appointment to the Board or nomination for election to the Board was approved by a vote of a majority of the directors
then still in office, either were directors at the beginning of such period or whose appointment or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the Board. 
  
 (iii) The effective date of any consolidation or merger of the Company
(after all requisite shareholder, applicable regulatory and other approvals and consents have been obtained), other than (A) a consolidation or merger of the Company in which the holders of the voting capital stock of the Company immediately prior
to the consolidation or merger hold at least fifty percent (50%) of the voting capital stock of the surviving entity immediately after the consolidation or merger or (B) a consolidation or merger of the Company with one or more other persons that
are related to the Company immediately prior to the consolidation or merger. For purposes of this provision, persons are “related” if one of them owns, directly or indirectly, at least fifty percent (50%) of the voting capital stock of the
other or a third person owns, directly or indirectly, at least fifty percent (50%) of the voting capital stock of each of them. 
  
 (iv) The sale or transfer of substantially all of the Company’s assets, to one or more persons that are not related (as defined in clause (iii) of
this subsection 2.2(d)) to the Company immediately prior to the sale or transfer. 
  
 (e) “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
  
 (f) “Company” means Greater Bay Bancorp, a California corporation, and such of its successors or assigns as may expressly adopt the Plan and
agree in writing to continue the Plan. Company may also mean an Associated Company that has adopted this Plan in accordance with Section 5 hereof. 
  
 (g) “Compensation Committee” means the Compensation Committee of the Board. 
  
 (h) “Covered Compensation” means with respect to an Eligible Employee the sum of (i) the amount paid to such
individual as base salary from the Employer, plus (ii) the amount paid to such individual as annual bonus from the Employer, plus (iii) any amounts deferred by such individual under the Greater Bay Bancorp 401(k) Plan and under the Greater Bay
Bancorp 2005 Voluntary Deferred Compensation Plan. Deferred amounts shall be considered to have been received at such times and in such amounts as would have applied if no deferral had been elected by the individual. 
  

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 (i) “Credited Service” means the portion of a Participant’s period of Service on and after
the effective date of this Plan, throughout which the Participant was classified as an Eligible Employee. 
  
 (j) “Disability Retirement Date” means the fifteenth (15th) day of the month next following the month in which the Participant incurs a Disability while an Eligible Employee of the Company, but prior to a Participant’s Normal Retirement Date. 

 
 (k) “Disability” means a medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months and which: 
  
 (i) Renders the Participant unable to engage in any substantial gainful activity; or 
  
 (ii) Results in the Participant receiving income replacement benefits for a period of not less than three (3) months under
any policy of long-term disability insurance maintained by the Bank or the Company for the benefit of its employees. 
  
 “Disability” shall be interpreted in a manner consistent with Section 409A of the Code and shall be determined by the Plan Administrator in its
sole discretion, after consideration of such evidence as it may require, including a report or reports of such physician or physicians as the Plan Administrator may designate. 
  
 (l) “Early Retirement Date” means the first day of the calendar month next following the month in which a
Participant terminates employment with the Company after completing ten (10) years of Credited Service and attaining age fifty-five (55), but prior to the Participant’s Normal Retirement Date. 
  
 (m) “Employee” means any person employed as an employee of the
Company or an Associated Company, including officers, but excluding directors and Board members who are not in the Company’s or an Associated Company’s employ in any other capacity. 
  
 (n) “Eligible Employee” means any Employee who, after the effective
date of this Plan, becomes and continues to be an executive officer of the Company required to file reports under Section 16 of the Securities Exchange Act of 1934, as amended, or otherwise is designated by the Compensation Committee to be eligible
to participate in this Plan. An Employee who has entered into a Supplemental Executive Compensation Agreement with the Company or any Associated Company that provides nonqualified retirement benefits to such Employee shall not be an Eligible
Employee. An Employee shall be considered to be an Eligible Employee only during such periods as the Employee continues to meet the foregoing requirement. 
  
 (o) “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 
  
 (p) “Final Average Compensation” means the aggregate of a
Participant’s Covered Compensation during the consecutive three (3) calendar years in which the Participant 

  

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received Covered Compensation within the final seven (7) calendar years in which the Participant received Covered Compensation that produces the largest
aggregate amount of such Covered Compensation, divided by three (3). In the event a Participant has received Covered Compensation in less than three (3) full calendar years, such Participant’s Final Average Compensation shall be determined by
dividing the Participant’s aggregate Covered Compensation for the calendar months in which the Participant received Covered Compensation by the number of such calendar months, and multiplying the result by twelve (12) to obtain an annual rate
of Final Average Compensation. 
  
 (q) “401(k) Matching
Benefit” means the annual benefit under a single life annuity for the life of the Participant commencing on the Participant’s Normal Retirement Date that is Actuarially Equivalent to a hypothetical account balance equal to the sum of

  
 (i) sixty-two and one-half percent (62 1/2%) of the applicable dollar amount specified in Section 402(g)(1)(B) of the Code for each calendar year that the
Participant is an Eligible Employee, which amount shall be credited as of the last day of such calendar year; plus 
  
 (ii) annual interest on the hypothetical account balance, which shall be credited as of the last day of each calendar year at the Treasury Rate for such
calendar year. 
  
 (r) “Normal Retirement Date” means
the first day of the calendar month next following the month in which a Participant terminates employment with the Company after the Participant reaches Social Security Retirement Age. 
  
 (s) “Participant” means an individual who as an Eligible Employee has qualified for participation and is
participating under the Plan. 
  
 (t) “Plan
Administrator” means Greater Bay Bancorp, which shall be the administrator of the Plan within the meaning of Section 3(16) of ERISA. 
  
 (u) “Restoration Plan Benefit” means the annual benefit under a single life annuity for the life of the Participant commencing on the
Participant’s Normal Retirement Date that is Actuarially Equivalent to a hypothetical account balance equal to the sum of 
  
 (i) five percent (5%) of the excess of (A) the Participant’s Covered Compensation for each calendar year that the Participant is an Eligible
Employee over (B) the maximum dollar amount of a Participant’s Covered Compensation that can be taken into account for such calendar year for purposes of determining contributions or benefits under a qualified retirement plan, as set forth in
Section 401(a)(17) of the Code, which amount shall be credited as of the last day of such calendar year; plus 
  
 (ii) annual interest on the hypothetical account balance, which shall be credited as of the last day of each calendar year at the Treasury Rate for such
calendar year. 
  
 (v) “Retirement Date” means the
fifteenth (15th) day of the seventh (7th) month next following the Participant’s Normal Retirement Date or Early Retirement Date, whichever is applicable. 
  

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 (w) “Service” means the period during which an Employee is employed by the Company or any
Associated Company commencing with the Employee’s first day of employment and continuing through the termination of such employment, including paid leaves of absence, but excluding any unpaid leaves of absence or other unpaid breaks in service
except to the extent required to be included under applicable law. 
  
 (x) “Social Security Benefit” means the estimated monthly primary insurance amount that an Employee is or would be entitled to receive commencing at Social Security Retirement Age under the Social Security Act, whether or not the
Employee applies for or actually receives such benefit at such age or at any earlier or later age. For purposes of this Plan, such estimated amount shall be determined as of any date on the following basis: 
  
 (i) the Social Security Act as in effect on January 1 of the calendar year
in which the Employee’s severance from service date (SSD) occurs, if the Employee’s SSD occurs before June 1 of such year, or as in effect on June 1 of the calendar year in which the Employee’s SSD occurs, if the Employee’s SSD
occurs after May 31 of such year; 
  
 (ii) the assumption that,
in each calendar year beginning with the earlier of the calendar year in which the individual became an Employee and the calendar year in which the Employee attained age 35 and ending with the calendar year in which the Employee’s SSD occurs,
the Employee had earnings in an amount equal to or exceeding the Social Security taxable wage base for such calendar year; 
  
 (iii) the assumption that in each calendar year after the calendar year in which the Employee’s SSD occurs and ending with the calendar year
immediately prior to the calendar year in which the Employee reaches Social Security Retirement Age, the Employee will have wages equal to the Social Security taxable wage base for the calendar year in which the Employee’s SSD occurs; and

  
 (iv) the table or formula that would be used to determine the
Employee’s benefit under the Social Security Act upon the Employee attaining Social Security Retirement Age would be identical to those in effect on the Employee’s SSD. 
  
 (y) “Social Security Retirement Age” means the age (ranging from age 65 for persons born in 1937 and earlier to
age 67 for persons born in 1960 and later) at which an Employee is or would be entitled to receive his or her full unreduced benefit under the Social Security Act, whether or not the Employee applies for or actually receives such benefit at such age
or at any earlier or later age. 
  
 (z) “Treasury Rate”
means the quarterly average of the 10-year Treasury Bill constant maturity securities rate, with no floor or ceiling. The Interest Reference Rate shall be computed for each calendar quarter as the average of the (weekly) 10-year Treasury Bill
constant maturity securities rates published by Federal Reserve Board during the prior calendar quarter. The interest rate shall float from quarter to quarter. If the Federal Reserve Board ceases to weekly publication of the 10-year Treasury Bill
constant maturity securities rate, the Plan Administrator may select any comparable published rate as a replacement. 
  

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 2.3 Number and Gender. Wherever appropriate, words used herein in the singular may include the
plural, or the plural may be read as the singular, and the masculine may include the feminine. 
  
 2.4 The Code and ERISA. All references herein to Sections of the Code or to ERISA, or any Regulations or Rulings thereunder, shall be deemed to refer to such Sections as they may subsequently be modified,
amended, replaced or amplified by Federal Statutes, Regulations, or Rulings of similar application and import. 
  
 2.5 Headings. Headings and sub-headings included in this Plan are for convenience of reference only and shall not be used in the construction or
interpretation of any matter hereunder. 
  
 SECTION 3 

BENEFITS 
  
 3.1 Vested Benefit. A Participant shall have a vested right in his or her accrued retirement benefits under the Plan at the earliest of (a) the
Participant’s completion of ten (10) years of Service, (b) the Participant’s attainment of age sixty-five (65) while an Employee, (c) the Participant’s incurring a Disability while an Employee, (d) the Participant’s death while
an Employee, or (e) a Change in Control. 
  
 3.2 Normal
Retirement Benefit. The Normal Retirement Benefit payable under this Plan to a Participant who retires at his or her Normal Retirement Date, shall be an annual benefit payable in monthly installments in the form of a single life annuity for the
life of the Participant commencing on the Participant’s Retirement Date, with the annual benefit amount (not less than zero) equal to 
  
 (a) Two percent (2%) of the Participant’s Final Average Compensation multiplied by the Participant’s full years of Credited Service (but not
exceeding 25 years of Credited Service) as of the date the Normal Retirement Benefit is being calculated; reduced by 
  
 (b) The sum of 
  
 (i) the Participant’s Social Security Benefit, multiplied by the ratio of the Participant’s years of Credited Service to 30 years; 

 
 (ii) the Participant’s 401(k) Matching Benefit; and 
  
 (iii) the Participant’s Restoration Plan Benefit. 
  
 The maximum Normal Retirement Benefit for a Participant with 25 or more years
of Credited Service is fifty percent (50%) of the Participant’s Final Average Compensation, reduced by the sum of the items specified in clause (b) above. 
  

3.3 Early Retirement Benefit. A Participant who is entitled to and elects to retire on his or her Early Retirement Date shall receive an Early
Retirement Benefit commencing at the Participant’s Retirement Date. The Participant’s Early Retirement Benefit shall be the 

  

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Participant’s Normal Retirement Benefit based on the Participant’s Credited Service, Final Average Compensation, Social Security Benefit, 401(k)
Matching Benefit and Restoration Plan Benefit, all determined as of his or her Early Retirement Date, reduced by five-twelfths of one percent (5/12%) for each month by which the Participant’s Early Retirement Date precedes the
Participant’s Normal Retirement Date. 
  
 3.4 Computation
of Disability Retirement Benefit. A Participant who incurs a Disability and elects to retire on his or her Disability Retirement Date shall receive a Disability Retirement Benefit commencing at the Participant’s Disability Retirement Date.
The Participant’s Disability Retirement Benefit shall be the Participant’s Normal Retirement Benefit based on the Participant’s Credited Service, Final Average Compensation, Social Security Benefit, 401(k) Matching Benefit and
Restoration Plan Benefit, all determined as of his or her Disability Retirement Date, reduced by five-twelfths of one percent (5/12%) for each month by which the Participant’s Disability Retirement Date precedes the Participant’s Normal
Retirement Date. 
  
 3.5 Payment of Retirement Benefits.

  
 (a) The form for payment of benefits under the Plan to a
Participant, who is not legally married and has no legally registered domestic partner at the time benefits commence, shall be a fixed amount monthly payment for the life of the Participant commencing on the Participant’s Retirement Date (or
Disability Retirement Date, if applicable), continuing on the fifteenth (15th) day of each month thereafter, and
ending with the month in which the Participant’s death occurs. 
  
 (b) The form for payment of benefits under the Plan to a Participant, who is legally married or has a legally registered domestic partner at the time benefits commence, shall be a joint and survivor benefit under which the Participant shall
receive a fixed amount monthly payment for the Participant’s lifetime in an amount equal to the Actuarial Equivalent of the monthly benefit that would otherwise have been payable if payments were made in accordance with subsection (a), and
after the Participant’s death, if the Participant is survived by the spouse or registered domestic partner to whom the Participant was legally married or registered on the date for commencement of the Participant’s benefit hereunder, fifty
percent (50%) of the monthly amount payable to the Participant pursuant to this subsection (b) shall be payable monthly thereafter to such spouse or registered domestic partner as long as such spouse or registered domestic partner survives.

  
 3.6 Payment of Death Benefits. If a Participant dies
and on the date of death the Participant is legally married or has a legally registered domestic partner, the Participant shall be considered to have retired on the date of his or her death. The spouse of such Participant shall be entitled to
receive the fifty percent (50%) survivor benefit that would have been payable under subsection 3.5(b) to the Participant if the Participant had retired and commenced receiving a Disability Retirement Benefit or Normal Retirement Benefit, as the case
may be, on the fifteenth (15th) day of the month following the month in which the Participant’s death occurs.
The benefit payable to the spouse or registered domestic partner shall commence with the month following the month in which the Participant’s death occurs and shall be payable monthly thereafter as long as such spouse or registered domestic
partner survives. 
  

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 3.7 Lump Sum Payment of Small Benefits. Anything contained in Section 3.5 or 3.6 to the contrary
notwithstanding, if the vested benefit payable under this Plan to any Participant, contingent annuitant, or beneficiary at the time monthly payments are to commence shall have an Actuarial Equivalent value of less than $100,000, the Actuarial
Equivalent value of such vested benefit shall be paid to the Participant, contingent annuitant, or beneficiary in a single lump sum, in full settlement of the benefit under this Plan. 
  
 3.8 Income Tax Withholding. The Company shall withhold from any amount paid under this Plan any and all federal,
state and local income taxes and any other taxes that are required to be withheld from such payment under applicable law. 
  
 3.9 FICA Tax Withholding. The Company shall withhold from a Participant’s other compensation and/or from the first payments to be made under
this Plan, the Participant’s share of FICA and other employment taxes imposed on the value of the benefits payable from this Plan at the time such value becomes determinable and such taxes are required to be withheld under applicable law.

  
 3.10 Unfunded Status and Source of Benefit Payments.
The Plan is intended to be unfunded for purposes of both ERISA and the Code. The Plan does not require any segregated or separate assets. The benefits provided under the Plan shall be paid solely from the general assets of the Company. The Company
may establish or maintain one or more “rabbi trusts” or specific accounts with a financial institution to invest funds and hold assets to be used for the payment of benefits under the Plan, but any such “rabbi trusts,” accounts,
funds or assets shall not be considered to be assets of the Plan and shall remain subject to the claims of the general creditors of the Company. No Participant or spouse or registered domestic partner of a Participant or other person shall have any
claim against, right to, or security or other interest in, any “rabbi trust,” fund, account or asset of the Company from which any payment under the Plan may be made. 
  
 SECTION 4 
 ADMINISTRATION 
  
 4.1 Administration. This Plan
shall be administered by the Plan Administrator. The Plan Administrator is authorized to interpret this Plan and make all determinations which it deems necessary or advisable for its administration, which interpretations and determinations shall be
conclusive on all affected parties, unless and until reversed, amended or withdrawn by the Plan Administrator. This Plan shall be administered as an unfunded employee pension benefit plan maintained primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employees, and is not intended to meet the qualification requirements of Section 401 of the Code or the requirements of Parts 2, 3 and 4 of Subtitle B of Title I of ERISA.

  
 4.2 Agents and Specialists. The Plan Administrator may
appoint one or more persons or agents to aid it in carrying out its duties as Plan Administrator and a named fiduciary, and may delegate such of its powers and duties or powers as it deems desirable to such persons or agents. Such persons and agents
may be, but are not required to be, officers of the Company or other Employees. The Plan Administrator may employ such counsel, auditors, actuaries and other specialists and such clerical, medical and other services as the Plan Administrator may
require in carrying out the provisions of the Plan. 
  

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 4.3 Application for Benefits. The Plan Administrator may require any applicant for a retirement
benefit under this Plan to furnish it with such documents, data or information as the Plan Administrator may consider reasonably necessary or desirable. To the greatest extent possible, it is the intent of the Plan and its administrative procedures
that any benefits payable to a Participant, contingent annuitant or beneficiary be processed automatically by the Plan Administrator without the necessity of the Participant, contingent annuitant or beneficiary filing any formal claim for benefits,
other than such elections or notifications as may be required under the Plan. 
  
 4.4 Claims Procedure. 
  
 (a) If a Participant or beneficiary believes he or she is entitled to benefits under the Plan and that such benefits have been denied to him or her, such Participant or beneficiary shall file a claim to benefits in writing with the Plan
Administrator, setting forth the reason for and including any evidence supporting such claim. The Plan Administrator shall review any such claim and shall render a decision with respect thereto and shall notify the claimant of such decision within
ninety (90) days following the Plan Administrator’s receipt of such claim, unless the Plan Administrator determines that special circumstances require an extension of time for processing the claim. In no event shall any such extension exceed
ninety (90) days following the end of the initial ninety (90)-day period (i.e., the total period may not exceed one hundred eighty (180) days). If the Plan Administrator extends the time for processing a claim, the Plan Administrator shall give the
claimant written notice of the extension within ninety (90) days of the Plan Administrator’s receipt of the claim. The notice of extension shall indicate the special circumstances requiring the extension of time and the date by which the Plan
Administrator expects to render a decision on the claim. If the Plan Administrator denies any benefit claim, notice of the denial shall set forth the following information in a manner calculated to be understood by the claimant: 
  
 (i) The specific reason or reasons for the denial; 
  
 (ii) Reference to the specific Plan provisions on which the denial is based;

  
 (iii) A description of any additional material or information
necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and 
  
 (iv) A description of the Plan’s appeal procedures and the time limits applicable to such procedures, including a statement of the claimant’s
right to bring a civil action under Section 502(a) of ERISA if the appeal is denied. 
  
 (b) Any denial of a claim to benefits may be appealed by a Participant or beneficiary for a reexamination of the claim by the Plan Administrator. Any such appeal must be filed in writing with the Plan Administrator
within ninety (90) days following the Participant’s receipt of the written notice of denial. The written notice of appeal shall set forth 

  

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the grounds on which the appeal for reexamination of the claim is based. If written notice of the appeal is not submitted to the Plan Administrator within
such ninety (90)-day period, the Plan Administrator’s original decision on the claim will become final. In the event such an appeal is timely filed, the Plan Administrator shall reexamine the claim and shall afford the participant or
beneficiary an opportunity to present written comments, documents, records and other information relating to such claim. In such event, the claimant shall be provided, upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant to the claimant’s claim for benefits. The Plan Administrator’s review on appeal shall take into account all comments, documents, records and other information submitted by the claimant
relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The decision of the Plan Administrator with respect to any claim appealed to it for reexamination shall be made
within a reasonable time, but not later than sixty (60) days after receipt of the request for review, unless the Plan Administrator determines that special circumstances require an extension of time for processing the appeal. In no event shall any
such extension exceed sixty (60) days following the end of the initial sixty (60)-day period (i.e., the total period may not exceed one hundred twenty (120) days). If the Plan Administrator extends the time for processing an appeal, the Plan
Administrator shall give the claimant written notice of the extension within sixty (60) days of the Plan Administrator’s receipt of the claim. The notice of extension shall indicate the special circumstances requiring the extension of time and
the date by which the Plan Administrator expects to render a decision on the appeal. If the Plan Administrator denies any benefit claim on appeal, notice of the denial shall set forth the following information in a manner calculated to be understood
by the claimant: 
  
 (i) The specific reason or reasons for the
denial; 
  
 (ii) Reference to the specific Plan provisions on
which the denial is based; 
  
 (iii) A statement that the
claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits; and 
  
 (iv) A statement of the claimant’s right to bring a civil action under
Section 502(a) of ERISA. 
  
 (c) The determination of the Plan
Administrator with respect to any claim or appeal filed hereunder shall be conclusive and binding on all affected parties. 
  
 (d) It is the duty of a Participant or beneficiary to keep the Plan Administrator or the Company informed of his or her current address and of any other
changes in status or other factors which may affect his or her entitlement to benefits under this Plan and the processing of any claim in accordance with the automatic procedures contemplated in the Plan. In the event the Plan Administrator or
Company is not kept so informed and as a result the claim to benefits cannot be processed automatically, the participant or beneficiary must file a claim to benefits in writing in accordance with the procedures set forth in Section 4.3(a) above.

  

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 SECTION 5 
 ADOPTION BY ASSOCIATED COMPANIES 
  
 5.1 Associated Company Participation. Any Associated Company may adopt this Plan with the approval of Greater Bay Bancorp. In such event, the term “Company” shall be deemed to refer to such Associated Company wherever used
herein, except that any amendment to the Plan applicable to the Associated Company shall require the approval in writing of Greater Bay Bancorp. As long as Greater Bay Bancorp is a party to the Plan it shall be empowered to act thereunder for any
participating Associated Company in all matters respecting the Plan, and any action taken by Greater Bay Bancorp with respect thereto shall automatically include and be binding upon any Associated Company which is a party to the Plan. 
  
 5.2 Benefit Obligations. Greater Bay Bancorp and each Associated
Company shall be obligated to pay to an Employee and such Employee’s contingent annuitant or beneficiary only that portion of the benefits hereunder, if any, that are based upon the Employee’s Credited Service earned while employed by
Greater Bay Bancorp or such Associated Company, respectively. Expenses and fees in the operation of the Plan shall be apportioned by Greater Bay Bancorp between itself and Associated Companies participating hereunder as closely as possible in
proportion to the value of the benefits for their respective Employees (except where such fees or expenses are attributable to a particular participating company). Each Associated Company participating hereunder agrees to pay such amounts as so
determined or to reimburse Greater Bay Bancorp for such amount if Greater Bay Bancorp has paid or advanced such benefit payments, fees or expenses, or any part of them. 
  
 5.3 Termination of Associated Company Participation. Greater Bay Bancorp reserves the right, in its sole discretion
and at any time, to terminate the participation in this Plan of any or all Associated Companies. Such termination shall be effective immediately upon notice of such termination from Greater Bay Bancorp to the Associated Company being terminated.

  
 SECTION 6 
 MISCELLANEOUS 
  
 6.1 Applicable Law. All matters respecting the validity, effect, interpretation and administration of this Plan shall be determined in accordance
with ERISA, as it applies to unfunded employee pension benefit plans maintained primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees, and, to the extent state law is not
pre-empted by ERISA, the laws of the State of California applicable to contracts wholly executed and performed in such state. 
  
 6.2 Amendment or Discontinuance of the Plan. The Company expects to continue this Plan, but reserves the right to amend or terminate it in whole or
in part at any time, to any extent and in any manner that the Company in its sole discretion may consider advisable, necessary or desirable. Each such amendment or termination shall be adopted by action of the Board taken at a duly held meeting of
the Board, taken by written consent of the Board or taken in any other manner permitted under the Company’s articles of incorporation or bylaws or permitted under corporate law applicable to the Company. The Board may delegate (by reference to
a specific amendment or class of amendments or otherwise) to any officer of the 

  

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Company the authority to adopt any amendment or amendments (but not any plan termination) on behalf of the Board. Each amendment shall be duly adopted and in
full force and effect when the action of the Board adopting such amendment is taken (if such amendment is adopted by the Board) or when signed by an officer of the Company who has authority to do so pursuant to the provisions of this Section 6.2 (if
such amendment is adopted by such an officer). Upon any termination or partial termination of this Plan, the rights of all affected Participants and their contingent annuitants and beneficiaries to benefits then accrued under this Plan shall be
nonforfeitable. No amendment or termination of this Plan shall adversely affect the rights of a Participant with respect to his or her accrued benefit under the Plan determined as of the date of adoption of the amendment. 
  
 6.3 Attorneys’ Fees and Costs. If any legal action or other
proceeding is brought to collect any payment, to enforce any right, or to clarify any right under this Plan, the successful or prevailing party or parties shall be entitled to recover reasonable attorney’s fees and other costs incurred in that
action or proceeding, in addition to any other relief to which it or they may be entitled. 
  
 6.4 No Trust or Fiduciary Relationship Created. Nothing contained in this Plan, and no action taken pursuant to the provisions of this Plan, shall create or be construed to create a trust of any kind or a
fiduciary relationship between the Company or the Plan Administrator and any Participant, contingent annuitant, or beneficiary. 
  
 6.5 No Guarantee of Employment. No provision in this Plan shall be deemed or construed to impair or affect in any manner whatsoever the right of
the Company in its discretion at any time to employ persons as Employees, to discharge or terminate the Service of any Participant or Employee, or to retire any Participant or Employee, and every such right shall remain with the Company as if this
Plan were not in existence and had not been established. 
  
 6.6
Prohibition against Certain Payments. Notwithstanding any provision of the Plan to the contrary, no Participant shall be entitled to receive, and the Company shall not pay, any amount under this Plan that is prohibited by Section 359.1 of the
Federal Deposit Insurance Corporation Rules and Regulations. 
  
 6.7 Indemnification. The Company, through insurance or otherwise, shall indemnify and defend any Board member, Company officer, Employee, Plan Administrator, and agent or representative of any Plan Administrator to whom the Plan
Administrator has delegated fiduciary duties against any and all claims, losses, damages, expenses, including counsel fees, incurred by the person or agent and any liability, including any amounts paid in settlement with the Company’s approval,
arising from the action or failure to act of the person or agent or Company, except when the same is judicially determined to be attributable to the gross negligence or willful misconduct of such person or agent. The right of indemnity described in
the preceding sentence shall be conditioned upon (a) the timely receipt of notice by the Company of any claim asserted against the person or agent, which notice, in the event of a lawsuit shall be given within ten (10) days after receipt by the
person or agent of the complaint, and (b) the receipt by the Company of an offer from person or agent of an opportunity to participate in the settlement or defense of such claim. 
  

 -12- 

 6.8 Assignments Prohibited. The interest hereunder, whether vested or not, of any Participant,
contingent annuitant, or beneficiary shall not be subject to alienation, assignment, encumbrance, attachment, garnishment, execution, sequestration or other legal or equitable process, or transferability by operation of law in event of bankruptcy,
insolvency or otherwise. 
  
 IN WITNESS WHEREOF, the
Company has caused this Plan to be duly executed for and on behalf of the Company by its duly authorized officers on this the 15th day of February, 2005. 
  

			
	GREATER BAY BANCORP
		
	By:	 	  

	Title:	 	  

  

 -13-Form of Director Nonstatutory Stock Option Agreement

 EXHIBIT 10.4 
  
 DIRECTOR 
 NONSTATUTORY STOCK OPTION AGREEMENT 
  

	1.	Grant. Greater Bay Bancorp, a California corporation (the “Company”), hereby grants to Name (the “Optionee”), an option (the “Option”) to
purchase a total of Shares shares of common stock of the Company, at the price determined as provided herein, and in all respects subject to the terms, definitions and provisions of the Greater Bay Bancorp 1996 Stock Option Plan (the
“Plan”). The capitalized terms defined in the Plan shall have the same defined meanings herein. 

  

	2.	Nature of the Option. This Option is intended by the Company and the Optionee to be a nonstatutory stock option and does not qualify for any special tax benefits to the
Optionee. This option is not an Incentive Stock Option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended. 

  

	3.	Exercise Price. The Exercise Price is $Price for each share of common stock, which price is not less than the Fair Market Value per share of the common stock of the
Company on the Grant Date. 

  

	4.	Term of Option. Subject to earlier termination as provided in the Plan, this Option shall terminate on «Expiration», and may be exercised during such term
only in accordance with the Plan and the terms of this Option. 

  

	5.	Exercise of Option. This Option shall be exercisable during its term in accordance with the provision of Section 6 of the Plan as follows: 

  
 a) Right to Exercise. This Option shall become 100% vested on the
date which is six months after the Grant Date; provided, however, this Option shall become 100% vested immediately in the event of Optionee’s death or Total and Permanent Disability prior to the expiration of such six month period. 

 
 b) Minimum Exercise. This Option may not be exercised for less
than 10 Shares nor for a fraction of a Share. 
  
 c) Method of
Exercise. This Option shall be exercisable by written notice which shall state the election to exercise the Option and specify the number of whole Shares in respect of which the Option is being exercised. Such written notice shall be signed by
the Optionee and shall be delivered in person or by certified mail, to the Secretary of the Company accompanied by payment of the Exercise Price as specified below. 
  
 No Shares will be issued pursuant to the exercise of the Option unless such issuance and such exercise shall comply with all
relevant provisions of law and the requirements of any stock exchange or inter-dealer quotation system upon which the shares of the Company’s common stock may then be listed or quoted. Assuming such compliance, the Shares shall be considered
transferred to the Optionee on the date on which the Option is exercised with 

  

 Page 1 of 5 

 
respect to such Shares. An Optionee shall have no rights as a shareholder of the Company with respect to any Shares until the issuance of a stock certificate
to the Optionee for such Shares. 
  
 d) Method of Payment.
The entire Exercise Price of Shares issued under this Option shall be payable in cash or by certified check, official bank check, or the equivalent thereof acceptable to the Company at the time when such Shares are purchased. Such payment also shall
include the amount of any withholding tax obligation which may arise in connection with the exercise, as determined by the Company. In addition, payment may be made in any of the following forms as indicated by an “X” in the preceding
parenthesis: 
  
 (X) Surrender of Stock. Payment of all or
part of the Exercise Price and any withholding taxes may be made all or in part with Shares which have already been owned by the Optionee or Optionee’s representative for more than 6 months and which are surrendered to the Company in good form
for transfer. Such Shares shall be valued at their Fair Market Value on the date when the new Shares are purchased pursuant to exercise of the Option. 
  
 (X) Exercise/Sale. Payment may be made by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker
approved by the all or part of the Exercise Price and any withholding taxes. 
  
 (X) Exercise/Pledge. Payment may be made by the delivery (on a form prescribed by the Company) of an irrevocable direction to pledge Shares to a securities broker or lender approved by the Company, as security
for a loan, and to deliver all or part of the loan proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes. 
  
 e) Termination of Service. In the event that the Optionee’s Service as an Employee terminates: 
  
 (i) As a result of such Optionee’s death, Total and Permanent
Disability, retirement or resignation without cause, the term of the Option shall expire 36 months after the date upon which such event occurs, but not later than the expiration date specified in Section 4 above. 
  
 (ii) As a result of termination by the Company for cause, the term of the
Option shall expire thirty days after the Company’s notice or advice of such termination is dispatched to Employee, but not later than the original expiration date specified in the Stock Option Agreement. For purposes of this Paragraph (ii),
“cause” shall mean an act of embezzlement, disclosure of any of the secrets or confidential information of the Company, the inducement of any client or customer of the Company to break any contract with the Company, or the inducement of
any principal for whom the Company acts as agent to terminate such agency relationship, the engagement of any conduct which constitutes unfair competition with the Company, the removal of Optionee from office by an court or bank regulatory agency,
or such other similar acts which the Committee in its discretion determine to constitute good cause for termination of Optionee’s Service. As used in this Paragraph (ii), Company includes Subsidiaries of the Company. 
  

 Page 2 of 5 

 Neither the Plan nor this Option shall be deemed to give Optionee a right to remain an Employee or
consultant of the Company or Subsidiary. The company and its Subsidiaries reserve the right to terminate the service of any Employee or consultant at any time, with or without cause, subject to applicable laws and the terms of any written employment
agreement. 
  

	6.	Non-Transferability of Option.  

  
 (a) Except as provided below, this Option may not be transferred in any manner other than by will, by written beneficiary designation or by the laws of
descent and distribution, and may be exercised during the lifetime of Optionee only by Optionee. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. 
  
 (b) Optionee may transfer this Option in whole or in part to the following
persons (and only the following persons): (i) Optionee’s spouse, former spouse, children including adopted children, step-children, grandchildren, parents, grandparents, brothers, sisters, aunts, uncles, nieces, nephews, first cousins,
mother-in-law, father-in-law, brothers-in-law, or sisters-in-law (“Family Members”), or such other persons as may be approved in writing by the Committee in its sole and absolute discretion (“Approved Transferees”), or (ii) a
trust or trusts for the exclusive benefit of any such Family Members or Approved Transferees. 
  
 (c) In order to effectuate a transfer pursuant to Section 6(b) above, the transfer must be in writing in an instrument submitted to the Company within ten (10) business days after its execution. The Company may grant
or withhold its consent to the transfer or the terms of the transfer in its sole and absolute discretion. In the event the Company does not notify Optionee in writing of its disapproval of the transfer or its terms within ten (10) business days of
receipt by the Company of a copy of the written transfer instrument from the Optionee, the transfer shall be deemed approved. 
  
 (d) Transfers of this Option under Section 6(b) above may not be a transfer for consideration (for example, sales or exchanges of the Option are not
permitted). 
  
 (e) Family Members and Approved Transferees may
not retransfer this Option in whole or in part other than by will or by the laws of descent and distribution, and a transferred Option may be exercised during the lifetime of the transferee only by such transferee. 
  
 (f) Following any transfer hereunder, the Option shall continue to be
subject to the same terms and conditions as were applicable immediately prior to the transfer. The term “Optionee” shall be deemed to refer to the transferee. The events of termination of employment in Section 5(e) shall continue to be
applied with respect to the original Optionee rather than the transferee, following which the Option shall be exercisable by the transferee only to the extent and for the periods specified in Section 5(e). 
  

 Page 3 of 5 

	7.	Adjustment of Shares. In the event of a subdivision of the outstanding shares of common stock of the Company, a declaration of a dividend payable in Shares, a declaration of
a dividend payable in a form other than Shares in an amount that has a material effect on the value of Shares, a combination or consolidation of the outstandings shares of common stock (by reclassification or otherwise) into a lesser number of
Shares, a recapitalization, a spin-off or a similar occurrence, the Company shall make appropriate adjustments in the number of Shares covered by the Option and in the Exercise Price of the Option. 

  
 In the event that the Company is a party to a merger, consolidation or other
reorganization agreement which would constitute a “Change in Control”, such agreement may provide, subject to the provisions of Section 6(e)(i) of the Plan (which provides for the immediate acceleration of the vesting and exercisability of
all shares subject to this Option), (i) for the assumption of this Option by the surviving corporation or its parent or for continuation of the Option by the Company (if the Company is a surviving corporation), or (ii) for cancellation of the Option
upon payment of a cash settlement equal to the difference between the amount to be paid for one Share under such agreement and the then-current Fair Market Value of such Share on an unrestricted basis, or (iii) in the event the agreement does not
provide for either of the events specified in subparagraphs (i) and (ii) above, the cancellation of this Option not exercised prior to the effective date of such merger, consolidation or other reorganization, in all cases without the Optionee’s
consent. 
  
 Except as provided in this Section, Optionee shall
have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment or any dividend or any other increase or decrease in the number of share of stock of any class. Any issue by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to the Option. The grant of this Option
pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or
transfer all or any part of its business or assets. 
  

	8.	Taxation Upon Exercise of Option. Optionee understands that upon exercise of this Option, Optionee will generally recognize income for tax purposes in an amount equal to the
excess of the then Fair Market Value of the Shares over the exercise price. If the Company is required to withhold tax from Optionee with respect to such income; the Company may require the Optionee to make a cash payment or other arrangements to
cover such liability as a condition of exercise of this Option. 

  
 Grant Date: 
  

			
	 GREATER BAY BANCORP

		
	 By:
	 	  

  

 Page 4 of 5 

 Optionee represents that Optionee is familiar with the terms and provisions of this Option and hereby accepts the same
subject to all the terms and provisions hereof. Optionee hereby agrees to accept as binding, conclusive and final all decision, or interpretations of the Board of Directors or its duly appointed Committee upon any questions arising under the Plan.

  

	
	 Dated:
                                        
        

	
	  

	 Optionee

  

 Page 5 of 5

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