Document:

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                                                       Exhibit 10.13

                              GREATER BAY BANCORP

                                 1997 ELECTIVE

                          DEFERRED COMPENSATION PLAN

                        Amended as of December 16, 1999

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                              GREATER BAY BANCORP
                   1997 ELECTIVE DEFERRED COMPENSATION PLAN
                        Amended as of December 16, 1999

     This Greater Bay Bancorp 1997 Elective Deferred Compensation Plan (the
"Plan") is adopted by Greater Bay Bancorp, a California corporation (the
"Company"), and its Subsidiaries to provide specified deferred compensation
benefits to a select group of management or highly compensated employees and
Directors who contribute materially to the continued growth, development, and
future business success of the Company and its Subsidiaries.  The Plan shall be
unfunded for tax purposes and for purposes of Title I of ERISA.

                                   ARTICLE I
                                   ---------
                                  DEFINITIONS
                                  -----------

     Section 1.01  Definitions.  Whenever used in the Plan, the following words
                   -----------
and phrases shall have the meanings set forth below unless a different meaning
is expressly provided or plainly required by the context in which the words or
phrases are used:

                   (A) "Account" or "Deferred Compensation Contribution Account"
                        -------------------------------------------------------
          means the account maintained for each Participant which represents his
          or her total interest in the Plan as of any date and which consists of
          the Participant's account to which (i) Deferred Compensation
          Contributions have been credited under the Plan, plus (ii) Additions
          have been credited in accordance with Section 4.03 of this Plan, and
          (iii) all distributions have been subtracted.  This Account shall be a
          bookkeeping entry only and shall be utilized solely as a device for
          the measurement and determination of the amounts to be paid to a
          Participant pursuant to this Plan.  Each Participant's Account shall
          be maintained on a Plan Year-by-Plan Year basis so that the Deferred
          Compensation Contribution for a Participant for each Plan Year shall
          be tracked separately, as well as any Additions thereto and any
          distributions with respect to the deferred amounts attributable to
          that particular Plan Year.

                   (B) "Additions" means deemed earnings on Deferred
                        ---------
          Compensation Contributions with respect to the Interest Reference Rate
          applicable to the Deferred Compensation Contributions for a particular
          Plan Year for a Participant.

                   (C) "Beneficiary" means one or more persons, trusts, estates
                        -----------
          or other entities designated in accordance with Section 5.02(C) of the
          Plan that are entitled to receive benefits under the Plan upon the
          death of a Participant.

                   (D) "Board" means the Board of Directors of the Company or a
                        -----
          Subsidiary, as the context requires.

                   (E) "Committee" means the Deferred Compensation Committee
                        ---------
          created by the Company Board or, if none, the Company Board itself.
          The

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          Committee shall consist of at least two (2) members, who may
          themselves also be Participants.

                   (F) "Compensation" means, with respect to any Employee, the
                        ------------
          annual base salary paid to such Employee by the Company or a
          Subsidiary that is includable in the Employee's gross income for each
          calendar year (determined without regard to community property laws),
          annual bonuses, special awards, commissions and deferred compensation
          contributions to this Plan, but excluding (1) any other amounts
          contributed by the Company or a Subsidiary to any pension plan or plan
          of deferred compensation, (2) any amount paid by the Company or a
          Subsidiary for non-taxable fringe benefits, such as health and
          welfare, hospitalization and group life insurance benefits, or
          perquisites, and (3), unless the Committee determines otherwise for a
          particular Plan Year, any amounts paid by the Company under the
          Venture Banking Group Warrant Incentive Compensation Plan (as it may
          be amended from time to time).

                   In the case of Directors, Compensation means the annual fees
          paid by the Company or a Subsidiary, including retainer fees and
          meeting fees, as compensation for serving on the Board of the Company
          or a Subsidiary.

                   (G) "Deferred Compensation Contributions" means the amount of
                        -----------------------------------
          Compensation a Participant elects to have the Company or a Subsidiary
          defer on his or her behalf under the Plan on a pretax basis in
          accordance with Section 3.01.

                   (H) "Director" means a member of a Board.
                        --------

                   (I) "Disabled" or "Disability" means permanent and total
                        --------      ----------
          disability as defined in Section 22(e)(3) of the Internal Revenue Code
          of 1986, as amended.

                   (J) "Election Form" means that form to be provided to a
                        -------------
          Participant by the Company or a Subsidiary by which the recipient may
          elect to participate in the Plan for a particular Plan Year.  A copy
          of the initial form of Election Form is attached hereto as Exhibit A.
          The Committee may modify such form from time to time.

                   (K) "Employee" means any person who is either (1) a Director,
                        --------
          or (2) a common law employee of the Company or a Subsidiary who is a
          member of a select group of management or highly compensated
          employees.

                   (L) "Interest Reference Rate" means, for each Plan Year, the
                        -----------------------
          published average Moody's corporate bond yield for AAA-rated corporate
          bonds published for the month of January of each Plan Year, plus 200
          basis points.  It is acknowledged that Moody's publishes such bond
          yields weekly during each month and that the Interest Reference Rate
          will be an average of such weekly bond yields as published from time
          to time for January of a Plan Year.  Notwithstanding such average, the
          Interest Reference Rate for a Plan Year shall

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          not be less than a 7% floor nor greater than a 10% ceiling, except
          that the Committee (in its sole and absolute discretion) may increase
          the Interest Reference Rate above said 10% ceiling for any Plan Year.
          The Interest Reference Rate as so computed shall float from year to
          year. If Moody's ceases publication of such bond yields, the Committee
          may select any comparable published rate as a replacement.

                   (M) "Participant" means an Employee who has been selected to
                        -----------
          participate in the Plan by the Committee for a particular Plan Year in
          accordance with the rules of eligibility established by the Committee
          and shall include, where the context requires, a former Participant
          entitled to benefits under the Plan.

                   (N) "Plan Year" means, for the initial year of the Plan,
                        ---------
          December 1, 1997 through December 31, 1997, and thereafter a 12-month
          period ending each December 31.

                   (O) "Subsidiary" means any corporation that has adopted the
                        ----------
          Plan and in which the Company owns, directly or indirectly, fifty
          percent (50%) or more of the total combined voting power of such
          corporation. Every corporation satisfying the foregoing ownership test
          as of the date of the adoption of the Plan by the Company has adopted
          the Plan simultaneously. Additional corporations may become
          Subsidiaries in the future if the foregoing ownership test is met and
          their Boards adopt the Plan.

                                  ARTICLE II
                                  ----------
                                 PARTICIPATION
                                 -------------

     Section 2.01  Eligibility and Participation.  As set forth in the
                   -----------------------------
definitions of "Employee" and "Participant," only certain Directors and a select
group of management or highly compensated common law employees of the Company or
a Subsidiary are eligible to participate in the Plan in accordance with such
eligibility rules as the Committee may establish.  Each Employee selected by the
Committee for participation in the Plan with respect to a particular Plan Year
shall become eligible to participate in the Plan upon notice by the Committee of
his or her eligibility for participation for that Plan Year.

     Section 2.02  Enrollment of Participants.  Each Employee eligible to
                   --------------------------
participate in the Plan and selected by the Committee for possible participation
for a particular Plan Year as provided in Section 2.01 shall complete an
Election Form pursuant to Section 3.02 with regard to that Plan Year.  At the
time of his or her initial enrollment, each such Employee shall also designate a
Beneficiary to receive benefits under the Plan in the event such Employee dies
prior to the time all benefits held in his or her Account under the Plan have
been distributed to him or her.

     Section 2.03  Duration of Participation.  From Plan Year to Plan Year, the
                   -------------------------
Committee may select potential Participants for that particular Plan Year from
among the Employees in its sole and absolute discretion.  Selection of an
Employee as a potential Participant with respect to

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one Plan Year does not guarantee selection of that Employee as a potential
Participant with respect to any subsequent Plan Year by the Committee.

                                  ARTICLE III
                                  -----------
                                 CONTRIBUTIONS
                                 -------------

     Section 3.01  Deferred Compensation Contributions.  Each Plan Year, a
                   -----------------------------------
Participant may designate on an Election Form a percentage of his or her
Compensation to have allocated to the Plan as a Deferred Compensation
Contribution in accordance with the provisions of Section 3.02, subject to the
limits set forth herein.  A Participant may elect to have such contributions
made from bonuses or Director fees at a lower or higher rate than from other
Compensation.  The minimum annual deferral is $2,000 in the aggregate, and the
maximums are:  100% of Director's fees; 100% of bonuses; and 50% of other
Compensation.

     Section 3.02  Election Procedure.  The Committee shall provide an Election
                   ------------------
Form to each Employee who is selected by the Committee to participate in the
Plan and to become a Participant.  Each such selected eligible Employee who
elects to make a Deferred Compensation Contribution for the applicable Plan Year
shall so specify on the Election Form and shall agree to a corresponding
reduction in his or her cash Compensation.  A Participant must complete his or
her annual Election Form and return it to the Committee on or before such date
as the Committee shall specify.  In the case of a Participant making an election
for the next Plan Year, such date shall be no later than the last day of the
calendar month prior to commencement of the Plan Year for which the
Participant's election shall be effective.  For the initial Plan Year or for an
eligible Employee selected for participation during the course of a Plan Year,
an eligible selected Employee shall elect to participate during the Plan Year in
which he or she first becomes eligible for participation by returning to the
Committee his or her properly completed Election Form on the deferral of
Compensation for services rendered by such Employee after his or her deferral
election.  If such eligible Employee does not make an election during the Plan
Year in which he or she first becomes eligible, a subsequent election may only
be made at the commencement of any succeeding Plan Year.  An election made by an
eligible selected Employee shall apply only for one Plan Year, and each eligible
Employee selected for participation for a subsequent Plan Year must make a
separate election for that Plan Year.

     Section 3.03  Failure to Elect.  An eligible Employee selected for
                   ----------------
participation but failing to return a completed Election Form to the Committee
on or before the specified due date for a Plan Year shall be deemed to have
elected to receive his or her full Compensation in cash for that Plan Year.

     Section 3.04  Irrevocability of Election by the Participant.  Except as
                   ---------------------------------------------
provided in Section 5.03 and Section 5.04, a Deferred Compensation Contribution
election made under the Plan shall remain irrevocable for the entire Plan Year
for which the election is made.

     Section 3.05  Company or Subsidiary Contributions.  Currently the Plan does
                   -----------------------------------
not provide for Company or Subsidiary contributions.

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     Section 3.06  FICA and Other Taxes.  For each Plan Year in which a Deferred
                   --------------------
Compensation Contribution is being withheld, the Company or Subsidiary shall
ratably withhold from the Participant's Compensation the Participant's share of
FICA and other employment taxes imposed on such Compensation; first, from
Compensation not deferred under the Plan, and (if necessary) second, from
Compensation which otherwise would be deferred under the Plan.

                                   ARTICLE IV
                                   ----------
                  PARTICIPANT ACCOUNTS AND INVESTMENT OPTIONS
                  -------------------------------------------

     Section 4.01  Participant Accounts.  The Company or Subsidiary shall
                   --------------------
establish a Deferred Compensation Contribution Account on behalf of each
Participant which shall be credited Plan Year-by-Plan Year with Deferred
Compensation Contributions on behalf of such Participant.  Deferred Compensation
Contributions with respect to regular Compensation shall be credited at least
monthly and Deferred Compensation Contributions with respect to Compensation
paid less frequently than monthly shall be credited promptly after such
Compensation otherwise would have been paid.

     The Committee shall maintain records relative to each Participant's
Deferred Compensation Contribution Account so that its value may be determined
as of any business day as provided in Sections 4.03 and 5.02(B) below.  Each
Participant shall be advised from time to time, at least once each Plan Year, as
to the status and value of his or her Deferred Compensation Contribution
Account.

     Section 4.02  Investment Options.  A Participant shall be deemed to have
                   ------------------
his or her Deferred Compensation Contribution for each Plan Year treated as if
such Contribution were  invested and reinvested at the Interest Reference Rate.
Participants have no other investment options with respect to Deferred
Compensation Contributions.

     Section 4.03  Crediting of Additions.  The Deferred Compensation
                   ----------------------
Contributions that a Participant makes to the Plan each Plan Year shall be
deemed to have been invested and reinvested from time to time at the Interest
Reference Rate.  The Committee shall credit the Participant's Account with
Additions on the Deferred Compensation Contributions credited to the
Participant's Account.  Additions to the Participant's Account shall accrue
beginning on the date the Account first has a positive balance and shall
continue until the Participant has received his or her Account in full as
provided under Section 5.02.  Deemed interest shall be credited quarterly and
compounded quarterly on a Participant's Account, as if each Deferred
Compensation Contribution were allocated to such Account on the last day of the
quarter in which it would otherwise be paid as Compensation.  In the case of any
event resulting in a distribution to a Participant or Beneficiary prior to the
end of a Plan Year, the basis for that Plan Year's interest crediting will be a
fraction of the full year's interest, based on the number of full calendar
quarters during the Plan Year prior to the calendar quarter in which the
distribution occurred.

     Section 4.04  Minimum Benefit.  Notwithstanding any provision of the Plan
                   ---------------
to the contrary, in no event shall the amount of benefits payable to a
Participant be less than the total

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amount of Deferred Compensation Contributions that the Participant has made to
the Plan during his or her years of participation in the Plan, less all
distributions.

                                   ARTICLE V
                                   ---------
                                    BENEFITS
                                    --------

     Section 5.01  Vesting.  Each Participant shall be fully vested in his or
                   -------
her Deferred Compensation Contribution Account at all times.

     Section 5.02  Payments of Benefits.  Except as provided in the remaining
                   --------------------
provisions of this Article V, a Participant's benefits hereunder shall be paid
to the Participant (or to his or her Beneficiary following the Participant's
death), as follows:

                   (A) That portion of the Participant's Account with respect to
          a Deferred Compensation Contribution for a Plan Year which the
          Participant has elected to have payable in the form of installments
          based upon the Participant's designation on his or her Election Form
          for that Plan Year shall be payable to him or her in the form of
          installments, and that portion of the Participant's Account with
          respect to a Deferred Compensation Contribution for a Plan Year which
          the Participant has elected to have payable in the form of a lump sum
          based upon the Participant's designation on his or her Election Form
          for that Plan Year shall be payable to him or her in the form of a
          lump sum, at such time as provided below.

                   (B) Payment of a Participant's benefit in the form of
          installments and/or a lump sum shall commence or shall be payable, as
          applicable, within 60 days following the Participant's death or payout
          commencement date specified in the applicable Election Form.

                   Notwithstanding the foregoing, the Committee may in its sole
          and absolute discretion disregard an installment election by the
          Participant and direct the payment of the Participant's benefit in a
          single lump sum, if the total amount of the benefit does not exceed
          $25,000. If the Participant dies before all installment benefits have
          been paid, the remaining installments shall be paid (over the
          remaining period) to his or her Beneficiary; provided, that the
          Committee in its sole and absolute discretion may determine to pay the
          value of the Account to the Beneficiary in a lump sum.

                   (C) A Participant may designate or change at any time the
          Beneficiary to receive the Participant's benefits hereunder in the
          event of his or her death.  Any such designation shall be made on a
          form provided by the Committee for that purpose, and shall not be
          effective until the form is filed with the Committee.  A form of
          beneficiary designation is attached hereto as Exhibit B, which form
          the Committee may modify from time to time.  Spousal consent is
          required if a married Participant wishes to name a primary Beneficiary
          other than his or her spouse.  If no Beneficiary is designated, or if
          a designated Beneficiary shall not survive to receive all payments due
          hereunder, all or such part of the Participant's

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          Account as have not been distributed shall be payable to the
          Participant's spouse, and, if no spouse survives, to the Participant's
          children, with equal shares among living children and with the living
          descendants of a deceased child receiving equal portions of the
          deceased child's share, and in the absence of spouse or descendant, to
          the Participant's estate. For purposes of this paragraph, "descendant"
          means all persons who are descended from the person referred to,
          either by legitimate birth to or legal adoption by such person, or any
          of such person's legitimately born or legally adopted descendants
          except descendants adopted by other persons. The Participant may
          designate a Beneficiary's estate or other conditional Beneficiaries in
          the event the first designated Beneficiary does not survive to receive
          full payment.

     Section 5.03  Hardship Withdrawals for Disability or Unforeseeable
                   ----------------------------------------------------
                   Emergencies.
                   -----------

                   (A) Amount. Upon Committee approval, in the case of
                       ------
          Disability of a Participant or an unforeseeable emergency with respect
          to a Participant, a Participant shall be permitted to (1) make a cash
          withdrawal, in any whole percentage increment or dollar amount, of up
          to one hundred percent (100%) of the amount in his or her Account,
          and/or (2) suspend any deferrals required to be made by him or her,
          for such period as the Committee may approve. However, the amount of
          any distribution under this section in the case of an unforeseeable
          emergency or Disability shall be limited to the amount necessary to
          defray the hardship expense which is not reasonably available from
          other sources outside the Plan and which constitutes an unforeseeable
          emergency. For this purpose, the Bank may accept the written statement
          of the Participant stating the nature of his or her immediate and
          heavy financial need, his or her financial resources, and the fact
          that the amount of withdrawal requested is not reasonably available
          from other sources.

                   (B) Withdrawal Procedure. A Participant wishing to withdraw
                       --------------------
          any amount hereunder shall do so by making application therefor which
          demonstrates to the satisfaction of the Committee (in its sole and
          absolute discretion) that the Participant is confronted by Disability
          or by a financial hardship due to an unforeseeable emergency.
          Application for withdrawals shall be made on such forms as the
          Committee prescribes and may be made at any time, effective as of the
          first day of the month following at least fifteen (15) days' notice to
          the Committee. Distribution of withdrawals shall be made in a lump sum
          as soon as is administratively possible following such date.
          Withdrawal distributions shall be based on the value of the
          Participant's Account as of the last day of the month prior to the
          date of the withdrawal, subject to quarterly interest accrual.

                   (C) Definition of Unforeseeable Emergency. For purposes of
                       -------------------------------------
          this section, "unforeseeable emergency" includes severe financial
          hardship to the Participant resulting from a sudden and unexpected
          illness or accident of the Participant (not resulting in Disability,
          however) or of a dependent (as defined in section 152(a) of the
          Internal Revenue Code of 1986, as amended) of the

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          Participant, loss of the Participant's property due to casualty, or
          other similar extraordinary and unforeseeable circumstances arising as
          a result of events beyond the control of the Participant. The
          circumstances that will constitute an unforeseeable emergency will
          depend upon the facts of each case, but, in any case, no withdrawal
          shall be permitted to the extent that such hardship is or may be
          relieved:

                    (1) Through reimbursement or compensation by insurance or
               otherwise;

                    (2) By liquidation of the Participant's assets (not
               including qualified retirement plan benefits), to the extent the
               liquidation of such assets would not itself cause severe
               financial hardship; or

                    (3) By cessation of deferrals under the Plan.

     Section 5.04  Non-Emergency Withdrawal.  A Participant may elect (on a form
                   ------------------------
provided by the Committee), at any time, to withdraw all of his or her Deferred
Compensation Contribution Account, less a 10% withdrawal penalty which shall be
forfeited upon such withdrawal.  No partial withdrawals are allowed.  Upon such
a withdrawal, the Participant's participation in the Plan shall cease, and the
Participant may not participate in the Plan for two (2) Plan Years following the
Plan Year in which the withdrawal occurs.

     Section 5.05  Regulatory Accelerated Payout.  If at any time any Subsidiary
                   -----------------------------
that is a bank is determined to be "significantly undercapitalized" pursuant to
the prompt corrective action provisions of federal banking law, then,
notwithstanding the general provisions of this Article V above, the Subsidiary
shall immediately distribute to such Subsidiary's Participants or Beneficiaries
a lump sum cash amount equal to the Account balances of such distributees.  In
the event bank Subsidiaries of the Company constituting more than two-thirds
(2/3) of the net assets of the Company have been determined to be "significantly
undercapitalized" as defined above, the Company shall make a similar immediate
payout to the Company's Participants and Beneficiaries.  All determinations for
purposes of this Section 5.05 shall be made by the Committee in its sole and
absolute discretion.

                                   ARTICLE VI
                                   ----------
                           CREDITOR RIGHTS; NO TRUST
                           -------------------------

     By participating in the Plan, a Participant shall become a mere unsecured
creditor of the Company or a Subsidiary.  No assets of the Company or a
Subsidiary shall be placed in trust or otherwise set aside from the claims of
general creditors of the Company or a Subsidiary for the benefit of any
Participant.  A Participant shall have the mere promise of the Company or a
Subsidiary to pay deferred compensation in the future.  A Participant's right to
benefit payments under the Plan are not subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment or
garnishment by creditors of the Participant or his Beneficiary.

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     The foregoing not withstanding, upon the occurrence of a Change in Control
as the term is defined below, the Company shall create an irrevocable trust, the
assets of which are subject to the claims of general creditors of the Company or
a Subsidiary (the "Rabbi Trust"), and transfer all amounts credited to the
Deferred Compensation Contribution Account of each Participant to such Rabbi
Trust.  For purposes of the Plan, the term "Change in Control" shall mean the
first to occur of any of the following events:

                   (A) Any "person" (as that term is used in Section 13 and
          14(d)(2) of the Securities Exchange Act of 1934 ("Exchange Act"))
          becomes the beneficial owner (as that term is used in Section 13(d) of
          the Exchange Act), directly or indirectly, of 25% or more of the
          Company's capital stock entitled to vote in the election of Directors;

                   (B) During any period of not more than two consecutive years,
          not including any period prior to the adoption of this Trust,
          individuals who, at the beginning of such period constitute the Board
          of Directors of the Company, 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 (A), (C), (D)
          and (E) of this Article) whose election by the Board of Directors or
          nomination for election by the Company's stockholders was approved by
          a vote of at least three-fourths (3/4ths) of the Directors then still
          in office, either were Directors at the beginning of the period or
          whose election or nomination for election was previously so approved,
          cease for any reason to constitute at least a majority thereof;

                   (C) The shareholders of the Company approve any consolidation
          or merger of the Company, other than a consolidation or merger of the
          Company in which the holders of the common stock of the Company
          immediately prior to the consolidation or merger hold more than 50% of
          the common stock of the surviving corporation immediately after the
          consolidation or merger;

                   (D) The shareholders of the Company approve any plan or
          proposal for the liquidation or dissolution of the Company; or

                   (E) The shareholders of the Company approve the sale or
          transfer of substantially all of the Company's assets to parties that
          are not within a "controlled group of corporations" (as defined in
          Code Section 1563) in which the Company is a member.

                                  ARTICLE VII
                                  -----------
                             ADMINISTRATION OF PLAN
                             ----------------------

     Section 7.01  Plan Administration.  The administration of the Plan shall be
                   -------------------
under the supervision of the Committee, which shall see that the Plan is carried
out, in accordance with its terms, for the exclusive benefit of persons entitled
to participate in the Plan without discrimination among them.  Committee members
must recuse themselves with respect to any

                                       10
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decisions of the Committee relating to that particular member individually. The
Committee's powers will include, but will not be limited to, the following
authority, in addition to all other powers provided by this Plan:

             (A) To make and enforce such rules and regulations as it deems
     necessary or proper for the efficient administration of the Plan;

             (B) To interpret the Plan, its interpretation thereof in good faith
     to be final and conclusive on all persons claiming benefits under the Plan;

             (C) To decide all questions concerning the Plan and the eligibility
     of any person to participate in the Plan;

             (D) To appoint such agents, counsel, accountants, consultants and
     other persons as may be required to assist in administering the Plan; and

             (E) To allocate and delegate its responsibilities under the Plan
     and to designate other persons to carry out any of its responsibilities
     under the Plan, any such allocation, delegation or designation to be in
     writing.

     Section 7.02  Examination of Records.  The Committee will make available to
                   ----------------------
each Participant such of his or her records under the Plan as pertain to the
Participant, for examination at reasonable times during normal business hours.

     Section 7.03  Nondiscriminatory Exercise of Authority.  Whenever, in the
                   ---------------------------------------
administration of the Plan, any discretionary action by the Committee is
required, the Committee shall exercise its authority in a nondiscriminatory
manner so that all persons similarly situated will receive substantially the
same treatment.  The Committee is given broad discretion to interpret and
construe the Plan and to carry out its responsibilities hereunder.  Subject to
the rights of appeal set forth in Section 7.04, decisions and interpretations of
the Committee shall be final, conclusive, and binding once made and shall be
entitled to judicial deference, and shall be upheld unless found to be arbitrary
or capricious.

     Section 7.04  Claim For Benefits and Review of Denial.
                   ---------------------------------------

             (A) Submission of Claim.  A Participant or Beneficiary (the
                 -------------------
     "Claimant") may file a claim for benefits under the Plan by writing a
     letter to the Committee which requests the determination of the Claimant's
     entitlement to benefits and which states the basis for the claim.  The
     claim must be dated and signed by the Claimant, and must contain the
     Claimant's address and telephone number.

             (B) Denial of Claim.  If a claim is wholly or partially denied, the
                 ---------------
     Committee shall, within ninety (90) days after receipt of the claim,
     provide written notice to the Claimant setting forth the following in a
     manner calculated to be understood by the Claimant:

               (1) The specific reason or reasons for the denial;

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               (2) Specific reference to pertinent Plan provisions on which the
          denial is based;

               (3) 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

               (4) Appropriate information as to the steps to be taken if the
          Claimant wishes to submit his or her claim for review.

          If special circumstances require an extension of time for processing
     the claim, the Committee may extend the period for an additional ninety
     (90) days by furnishing written notice of the extension to the Claimant
     prior to the termination of the initial ninety 90-day period.

          If notice of denial of the claim is not furnished to a Claimant within
     these periods, and the claim has not been granted within these periods, the
     claim shall be deemed denied for the purposes of review.

          (C) Appeal From Denial of Claim.  A Claimant may appeal the denial of
              ---------------------------
     a claim to the Committee by delivering to the Committee a written
     application for review within sixty (60) days after receipt by the Claimant
     of written notification of denial of the claim, or such longer period as
     the Committee may, in its reasonable discretion, permit.  The written
     application shall be dated and signed by the Claimant or his or her
     authorized representative and shall request a review of the prior denial of
     the claim.  The Claimant shall be entitled to a full and fair review of the
     denial of his or her claim, including the opportunity for the Claimant or
     his or her authorized representative to review pertinent documents and to
     submit issues and comments in writing.

          (D) Review of Appeal.  The Committee shall make its decision on the
              ----------------
     appeal within sixty (60) days after receipt of the request for review,
     unless special circumstances (such as the need to hold a hearing if, in the
     Committee's determination, a hearing is necessary or advisable) require an
     extension of time, in which case a decision shall be rendered as soon as
     possible, but not later than one hundred twenty (120) days after receipt of
     the request for review.  If such an extension of time for review is
     required because of special circumstances, written notice of the extension
     shall be furnished to the Claimant prior to the commencement of the
     extension.  If the decision on review is not furnished within these time
     limits, the claim shall be deemed denied on review.

          The decision on review shall be in writing and shall include specific
     reasons for the decision, written in a manner calculated to be understood
     by the Claimant, and specific references to the pertinent Plan provisions
     on which the decision is based.

          (E) Legal Action.  Compliance with the administrative appeal
              ------------
     provisions of this Section 7.04 is a mandatory prerequisite to a Claimant's
     right to commence any legal action with respect to any claim for benefits
     under this Plan.

                                       12
<PAGE>

     Section 7.05  Correction of Administrative Errors.  If an error is made in
                   -----------------------------------
the administration of the Plan, the Committee shall promptly correct the error
upon its discovery.  For this purpose, "administration" shall encompass the
entire operation of the Plan, including, but not limited to, eligibility,
participation and benefit calculation and distribution.  If a Claimant (as
defined in Section 7.04) has been denied a benefit payment due to such
administrative oversight, the Committee shall determine the correct interest of
the Claimant and the Company or Subsidiary shall pay an amount on behalf of the
Claimant as is necessary to rectify the error.  If an excessive payment has been
made for a Participant or Beneficiary, the Committee shall advise the
Participant or Beneficiary of the error and shall take such actions on the
Plan's behalf as are necessary to retrieve the excessive payment.

     Section 7.06  Participant Applications and Notices.  Any Participant or
                   ------------------------------------
Beneficiary applications or notices required to be made to the Committee
hereunder shall be made to the Committee at the Company's principal office
address, and shall be deemed made upon personal delivery, two (2) days following
posting by express mail (postage prepaid), Federal Express or similar overnight
carrier, or five (5) days after sending by ordinary mail, postage prepaid.

                                  ARTICLE VIII
                                  ------------
                       AMENDMENT AND TERMINATION OF PLAN
                       ---------------------------------

     Section 8.01  Amendment.  The Company shall have the right to amend this
                   ---------
Plan from time to time, and to amend or cancel any such amendments.  Plan
amendments shall be stated in an instrument executed by the Company and each
Subsidiary adopting such amendment in the same manner as this Plan, and this
Plan shall be deemed to have been amended in the manner and at the time therein
set forth and all Participants and Beneficiaries shall be bound thereby;
provided, however, that no amendments shall be effective which shall attempt to
reduce the Account balance of any Participant or Beneficiary.

     Section 8.02  No Contractual Obligation.  It is the expectation of the
                   -------------------------
Company and the Subsidiaries that they will continue the Plan indefinitely, but
the continuation thereof is not assumed as a contractual obligation by the
Company or any Subsidiary.  The Plan may be discontinued or terminated with
respect to the Company or any Subsidiary at any time by action of the Company or
Subsidiary.  Discontinuance or termination of the Plan shall not have the effect
of depriving any Participant or Beneficiary of any benefit owed under the Plan
as of the date of termination of the Plan.

     Section 8.03  Procedure Upon Termination.  Upon the termination of the Plan
                   --------------------------
by the Company, the Company shall proceed as soon as administratively feasible,
but in any event within one (1) year from such effective date, to distribute all
of the Participants' Accounts owed under the Plan.

                                   ARTICLE IX
                                   ----------
                            MISCELLANEOUS PROVISIONS
                            ------------------------

                                       13
<PAGE>

     Section 9.01  Information To Be Furnished.  Participants and Beneficiaries
                   ---------------------------
shall provide the Committee with such information and evidence, and shall sign
such documents, as may reasonably be requested from time to time for the purpose
of administration of the Plan.

     Section 9.02  Limitation on Participants' Rights.  Participation in the
                   ----------------------------------
Plan shall not give any person the right to continued employment, or any right
or interest in the Plan other than as herein provided.  The Company and each
Subsidiary reserves the right to dismiss any person without any liability for
any claim either against the Plan, except to the extent herein provided, or
against the Company or Subsidiary.  All benefits provided hereunder shall be
provided solely by the Company or Subsidiary from its general assets.

     Section 9.03  Receipt and Release.  Any payment on behalf of any
                   -------------------
Participant or his or her legal representative or Beneficiary in accordance with
the provisions of this Plan shall be, to the extent thereof, in full
satisfaction of all claims against the Company or Subsidiary and the Company or
Subsidiary may require such Participant, legal representative or Beneficiary, as
a condition precedent to such payment, to execute a receipt and release to such
effect.

     Section 9.04  Nonassignability.  None of the benefits, payments, proceeds
                   ----------------
or claims of any Participant or Beneficiary shall be subject to any claim of any
creditor of any Participant or Beneficiary and, in particular, the same shall
not be subject to attachment or garnishment or other legal process by any
creditor of any Participant or Beneficiary, nor shall any Participant or
Beneficiary have any right to alienate, anticipate, commute, pledge, encumber or
assign any of the benefits or payments or proceeds which he or she may expect to
receive under this Plan.

     Section 9.05  Incompetency.  Every person receiving or claiming benefits
                   ------------
under the Plan shall be conclusively presumed to be mentally competent and of
age until the date on which the Committee receives a written notice, in a form
and manner acceptable to the Committee, that such person is incompetent or a
minor, for whom a guardian or other person legally vested with the care of his
or her person or estate has been appointed; provided, however, that if the
Committee shall find that any person to or for whom a benefit is payable under
the Plan is unable to care for his or her affairs because of incompetency, or is
a minor, any payment due (unless a prior claim therefor shall have been made by
a duly appointed legal representative) may be paid to the spouse, a child, a
parent or a brother or sister, or to any person or institution deemed by the
Committee to have incurred expense for such person otherwise entitled to
payment.  To the extent permitted by law, any such payment so made shall be a
complete discharge of liability therefor under the Plan.

     Section 9.06  No Guarantee of Tax Consequences.  The Company and the
                   --------------------------------
Subsidiaries make no commitment or guarantee that any Deferred Compensation
Contributions or other benefits hereunder provided or to be provided to or for
the benefit of a Participant or Beneficiary will be excludable from the
Participant's or Beneficiary's gross income for federal or state income tax
purposes, or that any other federal or state tax treatment will apply to or be
available to any Participant or Beneficiary.

     Section 9.07  Indemnification of Company and Subsidiaries by Participants.
                   -----------------------------------------------------------
If a Deferred Compensation Contribution or other amount is allocated to an
Account hereunder for any Participant and such allocation is taxable to the
Participant, such Participant shall indemnify

                                       14
<PAGE>

and reimburse the Company and Subsidiaries for any liability they may incur for
failure to withhold federal or state income tax or Social Security tax from such
payments. However, such indemnification and reimbursement shall not exceed the
amount of additional federal and state income tax and interest that the
Participant would have owed if the amount had been paid to the Participant as
regular cash Compensation, plus the Participant's share of any Social Security
tax that would have been paid on such Compensation, less any such additional
income and Social Security tax actually paid by the Participant.

     Section 9.08  Benefits Solely From General Assets.  The benefits provided
                   -----------------------------------
hereunder will be paid solely from the general assets of the Company or
Subsidiary, as applicable.  This Plan is an unfunded Plan, with no segregated or
separate assets required.  No Participant or Beneficiary or other person shall
have any claim against, right to, or security or other interest in, any fund,
account or asset of the Company or Subsidiary from which any payment under the
Plan may be made.  All amounts of compensation deferred under the Plan, all
property and rights purchased with such amounts, and all income attributable to
such amounts, property or rights, shall remain (until made available to the
Participant or other Beneficiary) solely the property and rights of the Company
or Subsidiary (without being restricted to the provision of benefits under the
Plan) subject only to the claims of the general creditors of the Company or
Subsidiary, as applicable.

     Section 9.09  Governing Law.  This Plan shall be construed, administered
                   -------------
and enforced according to the laws of California.

     Section 9.10  Distribution in the Event of Taxation or ERISA Coverage.
                   -------------------------------------------------------

     If, for any reason, all or any portion of a Participant's Account under
this Plan becomes taxable to the Participant prior to receipt, a Participant may
petition the Committee for a distribution of that portion of his or her Account
that has become taxable.  Upon the grant of such a petition, which grant shall
not be unreasonably withheld, the Company or Subsidiary shall distribute to the
Participant immediately available funds in an amount equal to the taxable
portion of his or her Account.  If the petition is granted, the tax liability
distribution shall be made within 90 days of the date when the Participant's
petition is granted.  Such a distribution shall reduce the Participant's
Account.  The Committee shall also distribute a Participant's Account
immediately in a lump sum in the event of a judicial or administrative decision,
or an opinion of Company's counsel, that such Participant is not a member of a
"select group of management or highly compensated employees" within the meaning
of Title I of ERISA (determined without regard to any termination of employment
or termination of Director status with the Company or a Subsidiary).

     Section 9.11  Taxes and Withholding.  The Company or Subsidiary may
                   ---------------------
withhold from any distribution under this Plan any and all employment and income
taxes that are required to be withheld under applicable law.

     Section 9.12  Adoption by Subsidiaries.  Any corporation that is now or
                   ------------------------
hereafter becomes a Subsidiary may adopt this Plan by executing a counterpart
signature page hereto and furnishing written notice of such adoption to the
Committee.

                                       15<PAGE>

                                                                   Exhibit 10.14

            GREATER BAY BANCORP 1996 STOCK OPTION PLAN, AS AMENDED
            ------------------------------------------------------
                            As of January 23, 2000

1.  PURPOSE.
    -------

     The purpose of the Plan is to offer selected employees, directors and
consultants an opportunity to acquire a proprietary interest in the success of
the Company, or to increase such interest, by purchasing Shares of the Company's
Common Stock. The Plan provides for the grant of Nonstatutory Options, ISOs
intended to qualify under Section 422 of the Code, and the grant of Restricted
Stock Awards.

2.  DEFINITIONS.
    -----------

     (a)  "Board of Directors" shall mean the Board of Directors of the Company,
          ------------------
as constituted from time to time.

     (b)  "Change in Control" shall mean the occurrence of any of the following
          -----------------
events:

          (i)    A change in the composition of the Board of Directors, as a
     result of which fewer than one-half of the incumbent directors are
     directors who either:

                 (A)  Had been directors of the Company 24 months prior to such
          change; or

                 (B)  Were elected, or nominated for election, to the Board of
          Directors 24 months prior to such change and who were still in office
          at the time of the election or nomination;

          (ii)   Any "person" (as such term is used in Sections 13(d) and 14(d)
     of the Exchange Act) by the acquisition or aggregation of securities is or
     becomes the beneficial owner, directly or indirectly, of securities of the
     Company representing 50 percent or more of the combined voting power of the
     Company's then outstanding securities. For purposes of this Paragraph (ii),
     the term "person" shall not include an employee benefit plan maintained by
     the Company;

          (iii)  The effective date of any merger, consolidation or other
     reorganization of the Company, other than a merger, consolidation or other
     reorganization of the Company in which the holders of the voting capital
     stock of the Company immediately prior to the merger, consolidation or
     other reorganization hold more that 50 percent of the voting capital stock
     of the surviving entity or its parent immediately after the consolidation,
     merger or other reorganization;

          (iv)   The shareholders of the Company approve any plan or proposal
     for the liquidation or dissolution of the Company; or
<PAGE>

          (v)  The shareholders of the Company approve the sale or transfer of
     substantially all of the Company's assets to parties that are not within a
     "controlled group of corporations" (as that term is defined in section 1563
     of the Code) in which the Company is a member.

     (c)  "Code" shall mean the Internal Revenue Code of 1986, as amended.
           ----

     (d)  "Committee" shall mean a committee of the Board of Directors, as
           ---------
described in Section 3(a), or in the absence of such a committee, the Board of
Directors.

     (e)  "Company" shall mean Greater Bay Bancorp, a California corporation,
           -------
formerly known as Mid-Peninsula Bancorp, a California corporation.

     (f)  "Employee" shall mean:
           --------

          (i)   Any individual who is a common-law employee of the Company or of
     a Subsidiary;

          (ii)  A member of the Board of Directors; and

          (iii) An independent contractor who performs services for the Company
     or a Subsidiary and who is not a member of the Board of Directors.

Service as an independent contractor or member of the Board of Directors shall
be considered employment for all purposes of the Plan, except as provided in
Section 4(a).

     (g)  "Exchange Act" shall mean the Securities Exchange Act of 1934, as
           ------------
amended.

     (h)  "Exercise Price" shall mean the amount for which one Share may be
           --------------
purchased upon exercise of an Option, as specified by the Committee in the
applicable Stock Option Agreement.

     (i)  "Fair Market Value" shall mean the market price of Stock, determined
           -----------------
by the Committee as follows:

          (i)   If Stock was traded over-the-counter on the date in question but
     was not traded on the Nasdaq system or the Nasdaq National Market System,
     then the Fair Market Value shall be equal to the mean between the last
     reported representative bid and asked prices quoted for such date by the
     principal automated inter-dealer quotation system on which Stock is quoted
     or, if Stock is not quoted on any such system, by the "Pink Sheets"
     published by the National Quotation Bureau, Inc.;

          (ii)  If Stock was traded over-the-counter on the date in question and
     was traded on the Nasdaq system or the Nasdaq National Market System, then
     the Fair Market Value shall be equal to the last-transaction price quoted
     for such date by the Nasdaq system or the Nasdaq National Market System;

                                       2
<PAGE>

         (iii) If Stock was traded on a stock exchange on the date in question,
     then the Fair Market Value shall be equal to the closing price reported by
     the applicable composite transactions report for such date; and

         (iv)  If none of the foregoing provisions is applicable, then the Fair
     Market Value shall be determined by the Committee in good faith on such
     basis as it deems appropriate.

In all cases, the determination of Fair Market Value by the Committee shall be
conclusive and binding on all persons.

     (j) "Grantee" means an individual who holds a Restricted Stock Award.
          -------

     (k) "ISO" shall mean an employee incentive stock option described in
          ---
Section 422(b) of the Code.

     (l) "Nonstatutory Option" shall mean a stock option not described in
          -------------------
Sections 422(b) or 423(b) of the Code.

     (m) "Option" shall mean an ISO or Nonstatutory Option granted under the
          ------
Plan and entitling the holder to purchase Shares.

     (n) "Optionee" shall mean an individual who holds an Option.
          --------

     (o) "Plan" shall mean this Greater Bay Bancorp 1996 Stock Option Plan, as
          ----
it may be amended from time to time.

     (p) "Restricted Stock" means shares of Common Stock issued or issuable
          ----------------
pursuant to a grant of Restricted Stock Award.

     (q) "Restricted Stock Award" means the right to earn Restricted Stock under
          ----------------------
the Plan.

     (r) "Restricted Stock Award Agreement" means a written agreement between
          --------------------------------
the Company and the Grantee which contains the terms, conditions and
restrictions pertaining to his or her Restricted Stock Award.

     (s) "Restrictions" shall mean (a) the restrictions on sale or other
          ------------
transfer (b) the exposure  to forfeiture set forth in Section 4 of the
Restricted Award Agreement and/or (c) the restrictions relating to performance,
if any, set forth on Appendix A of the Restricted Stock Award Agreement.

     (t) "Retirement" shall have the same meaning as "Retirement," as defined in
          ----------
the Greater Bay Bancorp 401(k) Profit Sharing Plan.

     (u) "Service" shall mean service as an Employee.
          -------

     (v) "Share" shall mean one share of Stock, as adjusted in accordance with
          -----
Section 9 (if applicable).

                                       3
<PAGE>

     (w)  "Stock" shall mean the Common Stock of the Company.
           -----

     (x)  "Stock Option Agreement" shall mean the agreement between the Company
           ----------------------
and an Optionee which contains the terms, conditions and restrictions pertaining
to his or her Option.

     (y)  "Subsidiary" shall mean any corporation, if the Company and/or one or
           ----------
more other Subsidiaries own not less than 50 percent of the total combined
voting power of all classes of outstanding stock of such corporation.  A
corporation that attains the status of a Subsidiary on a date after the adoption
of the Plan shall be considered a Subsidiary commencing as of such date.

     (z)  "Substitute Option" shall mean an option described in Section 6(j).
           -----------------

     (aa) "Substitute Restricted Stock Award" shall mean a restricted stock
           ---------------------------------
award described in Section 7(m).

     (bb) "Total and Permanent Disability" shall mean that the Optionee or
           ------------------------------
Grantee is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or which has lasted, or can be expected to last, for a
continuous period of not less than one year.

3.  ADMINISTRATION.
    --------------

     (a) Committee Membership.  The Board of Directors shall have the authority
         --------------------
to administer the Plan but may delegate its administrative powers under the
Plan, in whole or in part, to one or more committees of the Board of Directors.
With respect to the participation of Employees who are subject to Section 16 of
the Exchange Act, the Plan may be administered by a committee composed solely of
two or more members of the Board of Directors who qualify as "nonemployee
directors" as defined in Securities and Exchange Commission Rule 16b-3 under the
Exchange Act. The Plan may be administered by a committee composed solely of two
or more members of the Board of Directors who qualify as "outside directors" as
defined by the Internal Revenue Service for awards intended to qualify for an
exemption under Section 162(m)(4)(C) of the Code.

     (b) Committee Procedures.  The Board of Directors shall designate one of
         --------------------
the members of any Committee appointed under paragraph (a) as chairman.  Any
such Committee may hold meetings at such times and places as it shall determine.
The acts of a majority of the Committee members present at meetings at which a
quorum exists, or acts reduced to or approved in writing by all Committee
members, shall be valid acts of the Committee.

     (c) Committee Responsibilities.  Subject to the provisions of the Plan, any
         --------------------------
such Committee shall have full authority and discretion to take the following
actions:

          (i)   To interpret the Plan and to apply its provisions;

          (ii)  To adopt, amend or rescind rules, procedures and forms relating
     to the Plan;

                                       4
<PAGE>

          (iii)  To authorize any person to execute, on behalf of the Company,
     any instrument (including, but not limited to, Stock Option Agreements and
     Restricted Stock Award Agreements) required to carry out the purposes of
     the Plan;

          (iv)   To determine when Options and Restricted Stock Awards are to be
     granted under the Plan;

          (v)    To select the Optionees and Grantees;

          (vi)   To determine the number of Shares to be made subject to each
     Option and Restricted Stock Award;

          (vii)  To prescribe the terms and conditions of each Option, including
     (without limitation) the Exercise Price, to determine whether such Option
     is to be classified as an ISO or as a Nonstatutory Option, and to specify
     the provisions of the Stock Option Agreement relating to such Option;

          (viii) To prescribe the terms and conditions of each Restricted Stock
     Award, including (without limitation) Restrictions (if any), and to specify
     the provisions of the Restricted Stock Award Agreement relating to such
     Restricted Stock Award;

          (ix)   To amend any outstanding Stock Option Agreement and Restricted
     Stock Award Agreement, subject to applicable legal restrictions and to the
     consent of the Optionee or Grantee who entered into such agreement;

          (x)    To prescribe the consideration for the grant of each Option and
     Restricted Stock Award under the Plan and to determine the sufficiency of
     such consideration; and

          (xi)   To take any other actions deemed necessary or advisable for the
     administration of the Plan.

All decisions, interpretations and other actions of the Committee shall be final
and binding on all Optionees and Grantees, and all persons deriving their rights
from an Optionee or Grantee. No member of the Committee shall be liable for any
action that he or she has taken or has failed to take in good faith with respect
to the Plan or any Option or Restricted Stock Award.

4.  ELIGIBILITY.
    -----------

     (a) General Rules.  Only Employees shall be eligible for designation as
         -------------
Optionees or Grantees by the Committee.  In addition, only Employees who are
common-law employees of the Company or a Subsidiary shall be eligible for the
grant of ISOs.

     (b) Ten-Percent Stockholders.  An Employee who owns more than 10 percent of
         ------------------------
the total combined voting power of all classes of outstanding stock of the
Company or any of its Subsidiaries shall not be eligible for the grant of an ISO
unless:

          (i)    The Exercise Price is at least 110 percent of the Fair Market
     Value of a Share on the date of grant; and

                                       5
<PAGE>

          (ii) Such ISO by its terms is not exercisable after the expiration of
     five years from the date of grant.

     (c) Attribution Rules.  For purposes of Subsection (b) above, in
         -----------------
determining stock ownership, the rules of Section 424(d) of the Code shall
apply.

     (d) Outstanding Stock.  For purposes of Subsection (b) above, "outstanding
         -----------------
stock" shall include all stock actually issued and outstanding immediately after
the grant.  "Outstanding stock" shall not include shares authorized for issuance
under outstanding options held by the Employee or by any other person.

5.  STOCK SUBJECT TO PLAN.
    ---------------------

     (a) Basic Limitation.  Shares reserved for issuance pursuant to the
         ----------------
exercise of Options and Restricted Stock Awards granted under the Plan shall be
authorized but unissued Shares.  The aggregate number of Shares which may be
issued pursuant to the exercise of Options and Restricted Stock Awards granted
under the Plan shall be 4,915,780, all of which may be issued pursuant to the
exercise of ISOs, Nonstatutory Options or Restricted Stock Awards granted under
the Plan. The number of Shares which are subject to Options or Restricted Stock
Awards outstanding at any time under the Plan shall not exceed the number of
Shares which then remain available for issuance under the Plan.  The Company,
during the term of the Plan, shall at all times reserve and keep available
sufficient Shares to satisfy the requirements of the Plan.

     (b) Additional Shares.  In the event that any outstanding option granted
         -----------------
under this Plan, including Substitute Options, or the Prior Plan, for any reason
expires or is canceled or otherwise terminated, the Shares allocable to the
unexercised portion of such option shall become available for the purposes of
this Plan.  In the event that any outstanding Restricted Stock Award granted
under this Plan, including Substitute Restricted Stock Awards, for any reason
expires or is canceled, forfeited or otherwise terminated, the Shares allocable
to the unearned portion of such Restricted Stock Award shall become available
for the purposes of this Plan.

6.  TERMS AND CONDITIONS OF OPTIONS.
    -------------------------------

     (a) Stock Option Agreement.  Each grant of an Option under the Plan shall
         ----------------------
be evidenced by a Stock Option Agreement executed by the Optionee and the
Company. Such Option shall be subject to all applicable terms and conditions of
the Plan and may be subject to any other terms and conditions which are not
inconsistent with the Plan and which the Committee deems appropriate for
inclusion in a Stock Option Agreement. The provisions of the various Stock
Option Agreements entered into under the Plan need not be identical.

     (b) Number of Shares.  Each Stock Option Agreement shall specify the number
         ----------------
of Shares that are subject to the Option and shall provide for the adjustment of
such number in accordance with Section 9.  Options granted to any Optionee in a
single calendar year shall in no event cover more than 60,000 Shares, subject to
                                                       ------
adjustment in accordance with Section 9.  The Stock Option Agreement shall also
specify whether the Option is an ISO or a Nonstatutory Option.

                                       6
<PAGE>

     (c) Exercise Price.  Each Stock Option Agreement shall specify the Exercise
         --------------
Price.  The Exercise Price of an Option shall not be less than 100 percent of
the Fair Market Value of a Share on the date of grant, except as otherwise
provided in Section 4(b) with respect to ISO's and Section 6(i) with respect to
Substitute Options.  The Exercise Price shall be payable in a form described in
Section 8.

     (d) Withholding Taxes.  As a condition to the exercise of an Option, the
         -----------------
Optionee shall make such arrangements as the Committee may require for the
satisfaction of any federal, state, local or foreign withholding tax obligations
that arise in connection with such exercise. The Optionee shall also make such
arrangements as the Committee may require for the satisfaction of any federal,
state, local or foreign withholding tax obligations that may arise in connection
with the disposition of Shares acquired by exercising an Option. The Committee
may permit the Optionee to satisfy all or part of his or her tax obligations
related to the Option by having the Company withhold a portion of any Shares
that otherwise would be issued to him or her or by surrendering any Shares that
previously were acquired by him or her. Such Shares shall be valued at their
Fair Market Value on the date when taxes otherwise would be withheld in cash.
The payment of taxes by assigning Shares to the Company, if permitted by the
Committee, shall be subject to such restrictions as the Committee may impose.

     (e) Exercisability.  Each Stock Option Agreement shall specify the date
         --------------
when all or any installment of the Option is to become exercisable.  The vesting
of any Option shall be determined by the Committee at its sole discretion;
provided however, that:

            (i)   Each Stock Option Agreement shall provide for immediate
     exercisability of the entire Option in the event of a Change in Control.
     In addition, each Stock Option Agreement shall provide that during the 15
     day period prior to the effective date of a merger, consolidation or other
     reorganization which would constitute a Change in Control, each holder of
     an Option shall have the right, subject to earlier expiration or
     termination of the Option in accordance with its terms, to exercise the
     entire Option which exercise shall be deemed effective immediately prior to
     the effective date of such merger, consolidation or other reorganization
     and be subject to the occurrence of such effective date.

            (ii)  In the event that an Optionee's Service terminates, the Option
     shall be exercisable only to the extent the Option was vested as of the
     date of such termination, unless otherwise specified in the Optionee's
     Stock Option Agreement.

     (f) Term.  Each Stock Option Agreement shall specify the term of the
         ----
Option. The term of an ISO shall not exceed 10 years from the date of grant,
except as otherwise provided in Section 4(b). Subject to the preceding sentence,
the Committee at its sole discretion shall determine when an Option is to
expire. In the event that the Optionee's Service terminates:

            (i)   As a result of such Optionee's death or Total and Permanent
     Disability, the term of the Option shall expire twelve months (or such
     other period specified in the Optionee's Stock Option Agreement) after such
     death or Total and Permanent Disability but not later than the original
     expiration date specified in the Stock Option Agreement.

                                       7
<PAGE>

          (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 any 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.

          (iii)  As a result of termination for any reason other than Total and
     Permanent Disability, death or cause, the term of the Option shall expire
     three months (or such other period specified in the Optionee's Stock Option
     Agreement) after such termination, but not later than the original
     expiration date specified in the Stock Option Agreement.

     (g) Transferability.  During an Optionee's lifetime, such Optionee's ISO(s)
         ---------------
shall be exercisable only by him or her and shall not be transferable.  An
Optionee's Nonstatutory Options shall also not be transferable during the
Optionee's lifetime, except to the extent otherwise permitted in the Optionee's
Stock Option Agreement.  Subject to prior permitted transfers, in the event of
an Optionee's death, such Optionee's Option(s) shall not be transferable other
than by will, by written beneficiary designation or by the laws of descent and
distribution.

     (h) No Rights as a Stockholder.  An Optionee, or a transferee of an
         --------------------------
Optionee, shall have no rights as a stockholder with respect to any Shares
covered by his or her Option until the date of the issuance of a stock
certificate for such Shares.  No adjustments shall be made, except as provided
in Section 9.

     (i) Modification, Extension and Renewal of Options.  Within the limitations
         ----------------------------------------------
of the Plan, the Committee may modify, extend or renew outstanding Options or
may accept the cancellation of outstanding Options (to the extent not previously
exercised) in return for the grant of new Options at the same or a different
price.  The foregoing notwithstanding, no modification of an Option shall,
without the consent of the Optionee, impair such Optionee's rights or increase
his or her obligations under such Option.

     (j) Substitute Options.  If the Company at any time should succeed to the
         ------------------
business of another corporation through merger or consolidation, or through the
acquisition of stock or assets of such corporation, Options may be granted under
the Plan in substitution of options previously granted by such corporation to
purchase shares of its stock which options are outstanding at the date of the
succession ("Surrendered Options").  It is specifically intended that this
section of the Plan shall authorize the granting and issuance of Substitute
Options pursuant to the terms of: (i) the Amended and Restated Agreement and
Plan of Reorganization by and between Mid-Peninsula Bancorp and Cupertino
National Bancorp dated June 26, 1996 and (ii) the Agreement and Plan of
Reorganization by and among the Company, GBB Acquisition Corp., and Peninsula
Bank of Commerce dated November 3, 1997.  The Committee shall have discretion to
determine

                                       8
<PAGE>

the extent to which such Substitute Options shall be granted, the persons to
receive such Substitute Options, the number of Shares to be subject to such
Substitute Options, and the terms and conditions of such Substitute Options
which shall, to the extent permissible within the terms and conditions of the
Plan, be equivalent to the terms and conditions of the Surrendered Options. The
Exercise Price may be determined without regard to Section 6(c); provided
however, that the Exercise Price of each Substitute Option shall be an amount
such that, in the sole and absolute judgment of the Committee (and if the
Substitute Options are to be ISO's, in compliance with Section 424(a) of the
Code), the economic benefit provided by such Substitute Option is not greater
than the economic benefit represented by the Surrendered Option as of the date
of the succession.

7.   TERMS AND CONDITIONS OF RESTRICTED STOCK AWARDS.
     -----------------------------------------------

       (a) Restricted Stock Award Agreement.  Each grant of a Restricted Stock
           --------------------------------
Award under the Plan shall be evidenced by a Restricted Stock Award Agreement
executed by the Grantee and the Company.  Such Restricted Stock Award shall be
subject to all applicable terms and conditions of the Plan and may be subject to
any other terms and conditions, including any Restrictions, which are not
inconsistent with the Plan and which the Committee deems appropriate for
inclusion in a Restricted Stock Award Agreement.  The Restricted Stock Award
Agreement shall specify the purchase price (if any) for the Restricted Stock.
The provisions of the various Restricted Stock Award Agreements entered into
under the Plan need not be identical.

       (b) Number of Shares.  Each Restricted Stock Award Agreement shall
           ----------------
specify the number of Shares that are subject to the Restricted Stock Award and
shall provide for the adjustment of such number in accordance with Section 9.

       (c) Withholding Taxes.  As a condition to the lapse of any Restrictions
           -----------------
to the Restricted Stock Award, the Grantee shall make such arrangements as the
Committee may require for the satisfaction of any federal, state, local or
foreign withholding tax obligations that arise in connection with such lapse.
The Committee may permit the Grantee to satisfy all or part of his or her tax
obligations related to the Restricted Stock Award by having the Company withhold
a portion of any Shares that otherwise would be issued to him or her or by
surrendering any Shares that previously were acquired by him or her. Such Shares
shall be valued at their Fair Market Value on the date when taxes otherwise
would be withheld in cash. The payment of taxes by assigning Shares to the
Company, if permitted by the Committee, shall be subject to such restrictions as
the Committee may impose.

       (d)  Restrictions.  Each Restricted Stock Award Agreement shall specify
            ------------
any Restrictions on the Restricted Stock Award. Each Restricted Stock Award
Agreement shall specify the date(s) when all or any Restrictions to the
Restricted Stock Award shall lapse or the Restrictions (if any) relating to
performance satisfaction of which shall cause such Restrictions to lapse. The
lapse of any Restrictions shall be determined by the Committee in its sole
discretion, provided, however, that each Restricted Stock Award Agreement shall
provide that all Restrictions shall lapse upon a Change in Control.

                                       9
<PAGE>

       (e) Escrow of Restricted Stock.  Until all Restrictions have expired or
           --------------------------
been removed, the Secretary or such other escrow holder as the Board of
Directors may appoint shall retain custody of the stock certificates
representing the Restricted Stock subject to the Award; provided, however, that
in no event shall the Grantee retain physical custody of any certificates
representing shares of Restricted Stock awarded to him or her.

       (f) Termination of Service and Forfeiture of Restricted Stock.  Each
           ---------------------------------------------------------
Restricted Stock Award Agreement shall specify the term of the Restricted Stock
Award. Subject to the preceding sentence, the Committee at its sole discretion
shall determine when a Restricted Stock Award is to expire.  In the event that
the Grantee's Service terminates:

            (i)    As a result of such Grantee's death or Total and Permanent
       Disability, or in the event of Grantee's Retirement, the term of the
       Restricted Stock Award shall expire and any Restrictions on the
       Restricted Stock Awards immediately shall lapse upon such death, Total
       and Permanent Disability or Retirement but not later than the original
       expiration date specified in the Restricted Stock Award Agreement.

            (ii)   As a result of termination by the Company for cause, or any
       other event resulting in the termination of Grantee's Service not
       specified in Section 7(f)(i) above, the term of the Restricted Stock
       Award 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 Restricted Stock Award
       Agreement. In the event that a Grantee's Service terminates for cause, or
       any other event resulting in the termination of Grantee's service not
       specified in Section 7(f)(i) above, the Shares subject to the Restricted
       Stock Award shall be earned only to the extent the such Shares were
       earned as of the date of such termination, unless otherwise specified in
       the Grantee's Restricted Stock Award Agreement. In such event, the
       Grantee shall forfeit the right to earn any Restricted Stock subject to
       the Restricted Stock Award as to which vesting has not yet occurred, and
       the Restricted Stock so forfeited shall be returned to the Company.

       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 Grantee from office by any court or bank regulatory agency, or such other
similar acts which the Committee in its discretion determine to constitute good
cause for termination of Grantee's Service.  As used in this Paragraph (ii),
Company includes Subsidiaries of the Company.

       (g) No Fractional Shares.  In determining the number of shares of
           --------------------
Restricted Stock which are earned, fractional shares shall be rounded down to
the nearest whole number, provided that such fractional shares shall be
aggregated and earned at such time as all Restrictions lapse or expire.

                                       10
<PAGE>

       (h) Timing of Distributions: General Rule.  Except as provided in
           -------------------------------------
Subsection (i) below, certificates representing Restricted Stock shall be
distributed to the Grantee as soon as practicable after all Restrictions have
lapsed or expired.

       (i) Conditions to Issuance of Certificates.  The Company shall not be
           --------------------------------------
required to issue or deliver any certificate or certificates for shares of stock
pursuant to this Agreement prior to fulfillment of all of the following
conditions:

            (i)    The listing of such shares on all stock exchanges on which
       such class of stock is then listed;

            (ii)   The registration or qualification of such shares under any
       federal or state securities laws or under rulings or regulations of the
       Securities and Exchange Commission or of any other governmental
       regulatory body, which the Board of Directors shall, in its sole and
       absolute discretion, deem necessary or advisable;

            (iii)  The obtaining of any approval or other clearance from any
       state or federal governmental agency which the Board of Directors shall,
       in its sole and absolute discretion, determine to be necessary or
       advisable;

            (iv)   The lapse of such reasonable period of time as the Board of
       Directors may from time to time establish for reasons of administrative
       convenience;

            (v)    The receipt by the Company of full payment for any applicable
       withholding tax.

       (j) Transferability.  A Grantee's Restricted Stock Award shall not be
           ---------------
transferable during the Grantee's lifetime, except to the extent otherwise
permitted in the Grantee's Restricted Stock Award Agreement.  Subject to prior
permitted transfers, in the event of a Grantee's death, such Grantee's
Restricted Stock Award(s) shall not be transferable other than by will, by
written beneficiary designation or by the laws of descent and distribution.

       (k) Rights as Stockholder.  Upon the delivery of Restricted Stock to the
           ---------------------
escrow holder pursuant to the Restricted Stock Award Agreement, the Grantee
shall have all the rights of a stockholder of the Company with respect to the
Restricted Stock, subject to the Restrictions and the Restricted Stock
Agreement, including the right to vote the Restricted Stock and the right to
receive all dividends or other distributions paid or made with respect to the
Restricted Stock; provided, however, that any additional Shares of Restricted
Stock to which Grantee shall be entitled as a result of stock dividends, stock
splits or any other form of recapitalization in respect of Shares of Restricted
Stock subject to Restrictions shall also be subject to the Restrictions until
the Restrictions on the underlying shares of Restricted Stock lapse or expire.

       (l) Modification, Extension and Renewal of Options.  Within the
           ----------------------------------------------
limitations of the Plan, the Committee may modify, extend or renew outstanding
Restricted Stock Awards or may accept the cancellation of outstanding Restricted
Stock Awards (to the extent not previously earned) in return for the grant of
new Restricted Stock Awards at the same or a different price. The foregoing
notwithstanding, no modification of a Restricted Stock Award shall, without the

                                       11
<PAGE>

consent of the Grantee, impair such Grantee's rights or increase his or her
obligations under such Restricted Stock Award.

       (m) Substitute Restricted Stock Award.  If the Company at any time should
           ---------------------------------
succeed to the business of another corporation through merger or consolidation,
or through the acquisition of stock or assets of such corporation, Restricted
Stock Awards may be granted under the Plan in substitution of restricted stock
awards previously granted by such corporation with respect to shares of its
stock which restricted stock awards are outstanding at the date of the
succession ("Surrendered Restricted Stock Awards").   The Committee shall have
discretion to determine the extent to which such Substitute Restricted Stock
Awards shall be granted, the persons to receive such Substitute Restricted Stock
Awards, the number of Shares to be subject to such Restricted Stock Awards, and
the terms, conditions and restrictions of such Substitute Restricted Stock
Awards which shall, to the extent permissible within the terms and conditions of
the Plan, be equivalent to the terms, conditions and restrictions of the
Surrendered Restricted Stock Awards.  The Restrictions may be determined in the
sole discretion of the Committee; provided however, that the Restrictions of
each Substitute Restricted Stock Award shall be equivalent to the Restrictions
represented by the Surrendered Restricted Stock Award as of the date of the
succession.

8.   PAYMENT FOR SHARES.
     ------------------

       (a) General Rule.  The entire consideration for Shares issued under the
           ------------
Plan shall be payable in lawful money of the United States of America at the
time when such Shares are purchased, except as follows:

            (i)    ISOs.  In the case of an ISO granted under the Plan, payment
                   ----
       shall be made only pursuant to the express provisions of the applicable
       Stock Option Agreement. However, the Committee (at its sole discretion)
       may specify in the Stock Option Agreement that payment may be made
       pursuant to Subsections (b), (c) or (d) below.

            (ii)   Nonstatutory Options. In the case of a Nonstatutory Option
                   --------------------
       granted under the Plan, the Committee (at its sole discretion) may accept
       payment pursuant to Subsections (b), (c), or (d) below.

            (iii)  Restricted Stock Awards. In the case of a Restricted Stock
                   -----------------------
       Award granted under the Plan, payment (if any) shall be made only
       pursuant to the express provisions of the applicable Restricted Stock
       Award Agreement.

       (b) Surrender of Stock.  To the extent that this Subsection (b) is
           ------------------
applicable, payment may be made all or in part with Shares which have already
been owned by the Optionee or Grantee or his or her 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 under the Plan.

       (c) Exercise/Sale.  To the extent that this Subsection (c) is applicable,
           -------------
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 Company to sell
Shares and to deliver all or part of the sales

                                       12
<PAGE>

proceeds to the Company in payment of all or part of the Exercise Price of the
Option, or the consideration for the Restricted Stock Award, whichever the case
may be, and any withholding taxes.

       (d) Exercise/Pledge.  To the extent that this Subsection (d) is
           ---------------
applicable, 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 of the Option, or the consideration for the Restricted Stock
Award, whichever the case may be, and any withholding taxes.

9.   ADJUSTMENT OF SHARES.
     --------------------

       (a) General.  In the event of a subdivision of the outstanding Stock, 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 outstanding Stock (by
reclassification or otherwise) into a lesser number of Shares, a
recapitalization, a spinoff or a similar occurrence, the Committee shall make
appropriate adjustments in one or more of:

            (i)    The number of Shares available under Section 5 for future
       grants;

            (ii)   The limit set forth in Section 6(b) and Section 7(b);

            (iii)  The number of Shares covered by each outstanding Option and
       consideration for each outstanding Restricted Stock Award; or

            (iv) The Exercise Price under each outstanding Option and Restricted
       Stock Award.

       (b) Reorganizations.  In the event that the Company is a party to a
           ---------------
merger, consolidation or other reorganization which would constitute a Change in
Control, such agreement may provide, subject to the provisions of Section
6(e)(i) and the proviso of Section 7(d) (which provide for the immediate
acceleration of the vesting and exercisability of all shares subject to
outstanding Options and the immediate lapse of all restrictions on Restricted
Stock Awards), (i) for the assumption of outstanding Options and Restricted
Stock Awards by the surviving corporation or its parent, for their continuation
by the Company (if the Company is a surviving corporation), or (ii) for
cancellation of the Options or Restricted Stock Awards upon payment of a cash
settlement per Option or Restricted Stock Award 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 Options not exercised
prior to the effective date of such merger, consolidation or other
reorganization, in all cases without the Optionees' or Grantees' consent.

       (c) Reservation of Rights.  Except as provided in this Section 9, an
           ---------------------
Optionee or Grantee shall have no rights by reason of any subdivision or
consolidation of shares of stock of any class, the payment of any dividend or
any other increase or decrease in the number of shares of stock of

                                       13
<PAGE>

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 an Option and the number of or consideration
for Shares subject to a Restricted Stock Award. The grant of an Option or
Restricted Stock Award 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.

10.  SECURITIES LAWS.
     ---------------

       Shares shall not be issued under the Plan unless the issuance and
delivery of such Shares complies with (or is exempt from) all applicable
requirements of law, including (without limitation) the Securities Act of 1933,
as amended, the rules and regulations promulgated thereunder, state securities
laws and regulations, and the regulations of any stock exchange on which the
Company's securities may then be listed.

11.  NO RETENTION RIGHTS.
     -------------------

       Neither the Plan nor any Option or Restricted Stock Award shall be deemed
to give any individual a right to remain an employee or consultant of the
Company or a 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 a written employment agreement (if any).

12.  DURATION AND AMENDMENTS.
     -----------------------

       (a) Term of the Plan.  The Plan, as set forth herein, shall become
           ----------------
effective as of the Effective Date, provided that the Plan has been approved by
the shareholders of the Company in the manner required by applicable law or
regulation.  The Plan, if not extended, shall terminate automatically ten years
after the Effective Date, except that any ISO's granted under the Plan must be
granted by September 18, 2006, ten years after the Plan was adopted by the Board
of Directors.  It may be terminated on any earlier date pursuant to Subsection
(b) below.

       (b) Right to Amend or Terminate the Plan.  The Board of Directors may
           ------------------------------------
amend, suspend or terminate the Plan at any time and for any reason.  An
amendment of the Plan shall be subject to the approval of the Company's
shareholders only to the extent required by applicable laws or regulations.

       (c) Effect of Amendment or Termination.  No Shares shall be issued or
           ----------------------------------
sold under the Plan after the termination thereof, except upon exercise of an
Option granted prior to such termination. The termination of the Plan, or any
amendment thereof, shall not adversely affect any Share previously issued or any
Option or Restricted Stock Award previously granted under the Plan.

                                       14

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