Document:

Greater Bay Bancorp Severance Plan II

 EXHIBIT 10.4 
  
 GREATER BAY 
  
 BANCORP 
  
 SEVERANCE PLAN II 
  
 (Amended and Restated Effective January 1, 2005) 

 TABLE OF CONTENTS 
  

					
	ARTICLE I PURPOSE	  	2
		
	ARTICLE II EFFECTIVE DATE	  	2
		
	ARTICLE III DEFINITIONS	  	2
	    Section 3.1.	  	 Affiliated Company
	  	2
	    Section 3.2.	  	 Base Benefit
	  	3
	    Section 3.3.	  	 Board of Directors
	  	3
	    Section 3.4.	  	 Calculated Severance
	  	3
	    Section 3.5.	  	 Code
	  	3
	    Section 3.6.	  	 Committee
	  	3
	    Section 3.7.	  	 Company
	  	3
	    Section 3.8.	  	 Effective Date
	  	3
	    Section 3.9.	  	 Employee
	  	3
	    Section 3.10.	  	 Eligible Employee
	  	3
	    Section 3.11.	  	 ERISA
	  	3
	    Section 3.12.	  	 Layoff
	  	3
	    Section 3.13.	  	 Leave of Absence
	  	3
	    Section 3.14.	  	 Member Company
	  	4
	    Section 3.15.	  	 Participant
	  	4
	    Section 3.16.	  	 Pay
	  	4
	    Section 3.17.	  	 Plan
	  	4
	    Section 3.18.	  	 Plan Year
	  	4
	    Section 3.19.	  	 Severance Benefit
	  	4
	    Section 3.20.	  	 Year of Service
	  	4
		
	ARTICLE IV ELIGIBILITY FOR BENEFITS	  	4
	    Section 4.1.	  	 Employees Eligible for Severance Benefits.
	  	4
	    Section 4.2.	  	 Employees Not Eligible for Severance Benefits.
	  	4
		
	ARTICLE V SEVERANCE BENEFITS	  	5
	    Section 5.1.	  	 Calculation of Base Benefit.
	  	5
	    Section 5.2.	  	 Determination of Calculated Severance.
	  	6
	    Section 5.3.	  	 Maximum Severance Benefit.
	  	6
	    Section 5.4.	  	 Golden Parachute Restriction.
	  	6
	    Section 5.5.	  	 Continued Insurance Benefits.
	  	7
	    Section 5.6.	  	 Other Employee Benefits.
	  	7
	    Section 5.7.	  	 Payment of Benefits.
	  	8
	    Section 5.8.	  	 Payment Offset.
	  	8
	    Section 5.9.	  	 Repayment Upon Re-employment.
	  	8
	    Section 5.10.	  	 Unfunded Plan.
	  	8
	    Section 5.11.	  	 Prohibition Against Golden Parachute Payments.
	  	8
		
	ARTICLE VI ADMINISTRATION	  	8
	    Section 6.1.	  	 Plan Administration.
	  	8

  

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	    Section 6.2.	  	 Plan Committee.
	  	9
	    Section 6.3.	  	 Named Fiduciary.
	  	9
	    Section 6.4.	  	 Indemnification of Committee.
	  	9
	    Section 6.5.	  	 Claims Procedure.
	  	10
		
	ARTICLE VII AMENDMENT AND TERMINATION	  	12
		
	ARTICLE VIII GENERAL	  	12
	    Section 8.1.	  	 Payment Out of General Assets.
	  	12
	    Section 8.2.	  	 Welfare Benefit Plan.
	  	12
	    Section 8.3.	  	 Gender.
	  	13
	    Section 8.4.	  	 Limitation on Participant’s Rights.
	  	13
	    Section 8.5.	  	 Severability.
	  	13

  

 ii 

 GREATER BAY BANCORP 
 SEVERANCE PLAN II 
 Amended and Restated as of January 1, 2005

  
 ARTICLE I 
  
 PURPOSE 
  
 GREATER BAY BANCORP (the “Company”) established, effective as of January 1, 1998, and amended as of
March 23, 1999, the Termination & Layoff Pay Plan II to provide severance benefits to selected executives whose employment terminates in connection with a Layoff or Termination (as such terms were defined in the Termination &
Layoff Plan II). The Company has amended, restated and renamed such plan as the Severance Plan II, effective as of January 1, 2005, and hereby further amends and restates such plan, effective as of January 1, 2005, to provide severance
benefits to such executives who are deemed Eligible Employees and whose employment terminates in connection with a Layoff, in accordance with the terms set forth hereunder. The intent of the plan is to ensure all Eligible Employees have reasonable
protection related to a Layoff event as specified herein. 
  
 ARTICLE II 
  
 EFFECTIVE DATE 

 
 All of the policies and practices of each Member Company regarding
severance, or similar payments to Eligible Employees upon termination of employment in connection with a Layoff are hereby superseded by this plan which shall be known as the GREATER BAY BANCORP Severance Plan II (the “Plan”), as
originally established January 1, 1998, amended March 23, 1999, and as amended and restated effective January 1, 2005. 
  
 ARTICLE III 
  
 DEFINITIONS 
  
 Section 3.1. Affiliated Company means: 
  

	 	(a)	Any corporation (other than the Company) that is included in a controlled group of corporations, within the meaning of Code Section 414(b), that includes the Company, and

  

	 	(b)	Any trade or business (other than the Company) that is under common control with the Company within the meaning of Code Section 414(c), and 

  

	 	(c)	Any member (other than the Company) of an affiliated service group, within the meaning of Code Section 414(m), that includes the Company, and 

  

	 	(d)	Any other entity required to be aggregated with the Company pursuant to regulations under Code Section 414(o). 

  

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 Section 3.2. Base Benefit means the severance benefit payable to a Participant in accordance
with Articles IV and V of the Plan, the amount of which is based upon such Participant’s Pay and his title or position with a Member Company as of the date he terminates employment with the Member Company on account of a Layoff. 
  
 Section 3.3. Board of Directors means the board of directors of
the Company. 
  
 Section 3.4. Calculated Severance
means the severance benefit payable to a Participant in accordance with Articles IV and V of the Plan, the amount of which is based upon such Participant’s full Years of Service with a Member Company as of the date the Participant terminates
employment with a Member Company on account of a Layoff. 
  
 Section 3.5. Code means the Internal Revenue Code of 1986, as amended. 
  
 Section 3.6. Committee means the Benefits Administration Committee appointed by the Compensation Committee of the Company’s Board of Directors. 
  
 Section 3.7. Company means GREATER BAY BANCORP. 
  
 Section 3.8. Effective Date means January 1, 2005.

  
 Section 3.9. Employee means (1) any full-time
employee of a Member Company or (2) any regular part-time employee of a Member Company. For purposes of this Section 3.9, “full-time employee” shall mean an employee of a Member Company who is regularly scheduled to work at least
forty (40) hours per week for twelve (12) months each year. Notwithstanding the foregoing, with respect to employees of a Member Company which requires fewer than forty (40) hours per week for classification as a full-time employee,
“full-time employee” shall be defined according to such Member Company’s administrative policy and practice. “Regular part-time” employee shall mean any employee of a Member Company who is regularly scheduled to work at
least twenty (20) hours per week for twelve (12) months each year, but fewer hours than necessary to classify him as a full-time employee. 
  
 Section 3.10. Eligible Employee means an Employee who is a member of the Company’s Managing Committee (MC) and an Employee of a Member
Company. 
  
 Section 3.11. ERISA means the Employee
Retirement Income Security Act of 1974, as amended. 
  
 Section 3.12. Layoff means the termination of employment due to a business-based reduction in force, including, but not limited to, cost reduction, business or process reorganization/re-engineering, reassignment of duties, lack
of/insufficient duties, or elimination of a position. 
  
 Section 3.13. Leave of Absence means a period of absence from regular employment which is approved by the Member Company in a non-discriminatory manner for reasons such as, but not limited to, sickness, disability, education,
jury duty, convenience to a Member Company, maternity or paternity leave, family leave, or for periods of military duty during which the Employee’s reemployment rights are protected by law. 
  

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 Section 3.14. Member Company means the Company or an Affiliated Company, provided that the
Compensation Committee of the Company’s Board of Directors consents to the participation of any such Affiliated Company in the Plan with respect to Eligible Employees of such Affiliated Company. 
  
 Section 3.15. Participant means an Eligible Employee who
satisfies the requirements under Section 4.1 of the Plan. 
  
 Section 3.16. Pay means an Eligible Employee’s current annual rate of regular base salary or wages on the date of the Participant’s termination of employment with a Member Company on account of a Layoff, excluding all
other extra pay such as bonuses, overtime, commissions, premiums, supplements, imputed income and living, auto or other allowances. 
  
 Section 3.17. Plan means the Greater Bay Bancorp Severance Plan II. 
  
 Section 3.18. Plan Year means each twelve (12) consecutive month period from January 1 through
December 31. 
  
 Section 3.19. Severance Benefit
means the sum of any Base Benefit and any Calculated Severance to which a Participant is entitled in accordance with Articles IV and V. 
  
 Section 3.20. Year of Service means a twelve (12)-continuous month period beginning on an Employee’s most recent date of hire (or
rehire), and each twelve (12)-continuous month period beginning on the anniversary of such hire (or rehire) date, during which the Employee remains continuously employed by a Member Company. 
  
 ARTICLE IV 
  
 ELIGIBILITY FOR BENEFITS 
  
 Section 4.1. Employees Eligible for Severance Benefits.
Except as provided in this Section 4.1 and in Section 4.2, and subject to Section 5.11, an Eligible Employee whose employment is terminated by a Member Company on or after the Effective Date shall be eligible for a Severance Benefit
if: 
  

	 	(a)	Subject to Section 4.2, the Eligible Employee’s employment is terminated as a result of a Layoff; and 

  

	 	(b)	The Eligible Employee executes a waiver and release agreement in such form as determined by the Committee (the “Waiver and Release Agreement”) and returns the Waiver and
Release Agreement to the Member Company within the time period (not to exceed 45 days or such longer period as may be required by applicable law) specified in the Waiver and Release Agreement. 

  
 Section 4.2. Employees Not Eligible for Severance
Benefits. An Eligible Employee shall not be entitled to a Severance Benefit set forth in Article V if: 
  

	 	(a)	The Employee’s employment is terminated for reasons other than Layoff; or 

  

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	 	(b)	The Employee’s employment is terminated by reason of a Change in Control as that term is defined in the Greater Bay Bancorp Change in Control Plan II; or

  

	 	(c)	The Employee has in force an employment contract or executive severance agreement with a Member Company which includes provision for the payment of severance benefits upon the
termination of his employment with the Member Company as a result of a Layoff, unless such severance benefits are less than the Severance Benefit provided for in the Plan (in which case the Employee shall be entitled to the Severance Benefit
provided in the Plan in lieu of the severance benefits provided under such agreement); or 

  

	 	(d)	With respect to termination of employment resulting from a Layoff, the Employee is offered employment by a Member Company in another position of comparable pay and status to the
position held immediately prior to the Layoff, regardless of whether he accepts the offer; or 

  

	 	(e)	The Employee fails to perform his regular assigned job duties through the date specified by a Member Company as his termination date; or 

  

	 	(f)	The Employee fails to return a properly executed Waiver and Release Agreement on a timely basis. 

  
 For purposes of this Section 4.2, a “position of comparable pay and status” shall mean a position with not less than one
hundred percent (100%) of the Pay, bonus opportunity and benefits of the position held by the Employee prior to his termination of employment and with a similar scope of duties and responsibilities to such prior position. In addition, a
position will not be considered a position of comparable pay and status if an Employee is required to increase his normal commute to reach a new worksite by 35 miles or more each way. Notwithstanding the foregoing, the Committee reserves the right
to make decisions based on the facts and circumstances of individual cases as to whether a position is of comparable pay and status to that held by an Employee prior to his employment termination, provided that the Employee may appeal any such
decision pursuant to the provision of Section 6.5. 
  
 ARTICLE V 
  
 SEVERANCE BENEFITS

  
 Section 5.1. Calculation of Base
Benefit. Subject to the provisions of Sections 4.1, 4.2, and 5.11, a Participant whose employment is terminated as a result of a Layoff shall be entitled to receive a Base Benefit under this Plan as follows: 
  

	 	(a)	CEO. A Participant who is the CEO shall be entitled to receive a Base Benefit equal to twenty-four (24) months of Pay. 

  

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	 	(b)	All Other Participants. Each other Participant shall be entitled to receive a Base Benefit equal to twelve (12) months of Pay. 

  
 Section 5.2. Determination of Calculated Severance.
Subject to the provisions of Sections 4.1, 4.2, and 5.11, a Participant whose employment is terminated as a result of a Layoff shall be entitled to receive Calculated Severance under this Plan, based on the Participant’s full Years of Service
with a Member Company, equal to the amount of Pay that would have been payable for the number of weeks determined under the following table: 
  

			
	 No. of Full Years of Service

	  	 No. of Weeks Per Full Year of Service

	Less than 1 year	  	0 weeks
	1 year to 4 years	  	1 week 
	5 years to 10 years	  	2 weeks
	11 years or more	  	3 weeks

  
 Section 5.3.
Maximum Severance Benefit. Notwithstanding anything to the contrary contained herein, the maximum Severance Benefit payable to a Participant other than the CEO upon a termination of employment on account of a Layoff is eighteen
(18) months of Pay. 
  
 Section 5.4. Golden Parachute
Restriction. 
  

	 	(a)	In General. Notwithstanding anything above in this Article V, if a Participant is a “disqualified individual” (as defined in Section 280G(c) of the Code), and
the severance benefit provided for in Sections 5.1 and 5.2, together with any other payments which the Participant has the right to receive from a Member Company would constitute a “parachute payment” (as defined in Section 280G(b)(2)
of the Code), the Severance Benefit shall be reduced. The reduction shall be in an amount so that the present value of the total amount received by the Participant from a Member Company will be One Dollar ($1.00) less than three (3) times the
Participant’s base amount (as defined in Section 280G of the Code) and so that no portion of the amounts received by the Participant shall be subject to the excise tax imposed by Section 4999 of the Code. 

  

	 	(b)	Deferred Compensation and Reimbursements Exception. In no circumstances will a Member Company reduce the Severance Benefits payable to a Participant on account of the
restrictions of this Section 5.4 by the amounts the Participant has the right to receive under an executive deferred compensation plan of the Company (Deferred Compensation Plan), amounts paid or payable to the Participant to reimburse him
either fully or partially for excise tax and/or income tax on the reimbursement (gross up amounts), or amounts paid or payable on the Participant as indemnification for attorney’s fees and legal expenses. 

  

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	 	(c)	Determination of Reduction. The determination as to whether any reduction in the Severance Benefit is necessary shall be made by a Member Company in good faith, and the
determination shall be conclusive and binding on the Participant. 

  

	 	(d)	Repayment of Excess Amount. If through error or otherwise the Participant should receive payments under this Plan, together with other payments the Participant has the right
to receive from a Member Company, excluding Deferred Compensation Plan payments in excess of one dollar ($1.00) less than three times his base amount, the Participant shall immediately repay the excess to the Member Company upon notification that an
overpayment has been made. 

  
 Section 5.5.
Continued Insurance Benefits. Provided that the Participant timely elects continued coverage under the Consolidated Omnibus Budge Reconciliation Act of 1985 (“COBRA”), the Member Company shall pay that portion of the premiums
of each Participant’s group medical, dental and vision coverage, including coverage for the Participant’s eligible dependents, that the Member Company regularly paid prior to the Participant’s termination date for the period during
which the Participant is eligible for a Severance Benefit under Sections 5.1 and 5.2 (the “Continuation Period”). Such premium payments shall continue for the duration of the Continuation Period; provided, however, that no such premium
payments shall be made following the effective date of the Participant’s coverage by a medical, dental or vision insurance plan of a subsequent employer. Each Participant shall be required to notify the Member Company immediately if the
Participant becomes covered by a medical, dental or vision insurance plan of a subsequent employer. 
  
 No provision of this Plan will affect the continuation coverage rules under COBRA, except that the Member Company’s payment of any applicable
insurance premiums during the Continuation Period will be credited as payment by the Participant for purposes of the Participant’s payments required under COBRA. Therefore, the period during which a Participant may elect to continue the Member
Company’s group medical coverage at his own expense under COBRA, the length of time during which COBRA coverage will be made available to the Participant, and all other rights and obligations of the Participant under COBRA (except the
obligation to pay insurance premiums that the Member Company pays during the Continuation Period) will be applied in the same manner that such rules would apply in the absence of this Plan. At the conclusion of the Continuation Period, the
Participant shall be responsible for the entire payment of premiums required under COBRA for the duration of the COBRA continuation period. For purposes of this Section 5.5, applicable premiums that will be paid by the Member Company during the
Continuation Period shall not include any amounts payable by the Participant under a Section 125 health care reimbursement plan, which amounts, if any, are the sole responsibility of the Participant. 
  
 Section 5.6. Other Employee Benefits. All other employee
benefits (such as life insurance, disability coverage, and retirement plan coverage) terminate as of the Participant’s termination date (except to the extent that a conversion privilege may be available thereunder). 
  

 7 

 Section 5.7. Payment of Benefits. The Plan shall pay a Severance Benefit to a
Participant whose employment is terminated on account of a Layoff in the form of a lump sum. The Plan shall make lump sum distributions as soon as administratively practicable and in no event later than thirty (30) days following the receipt by
the Company of a timely and properly executed Waiver and Release Agreement. Notwithstanding the foregoing, if any payment to be made hereunder is considered nonqualified deferred compensation subject to Section 409A of the Code and otherwise
would be made within six months following a Participant’s termination of employment to such Participant who is a “specified employee” as defined for purposes of Code Section 409A, then such payment shall be delayed and paid on
the first day of the seventh calendar month following such termination of employment. 
  
 Section 5.8. Payment Offset. A Member Company reserves the right to offset the Severance Benefits payable under Sections 5.1 and 5.2 by any advance, loan or other monies the Participant owes the
Member Company. All Severance Benefit payments under the Plan will be subject to applicable withholding for federal, state and local taxes. 
  
 Section 5.9. Repayment Upon Re-employment. In the event of a Participant’s reemployment by a Member Company during the period of
time in respect of which Calculated Severance pursuant to Section 5.2 has been paid in a lump sum, the Member Company shall require such Participant to repay to the Member Company all or a portion of such Calculated Severance as a condition of
reemployment. The amount required to be repaid shall equal the Participant’s weekly Pay for the total number of weeks for which the Participant was eligible under Section 5.2 minus the Participant’s weekly Pay for the number of weeks
that have elapsed since the Participant’s termination of employment. If the Calculated Severance is paid in installments, the installment payments will stop upon reemployment with a Member Company. 
  
 Section 5.10. Unfunded Plan. The obligations of a Member
Company under this Plan may be funded through contributions to a trust or otherwise, but the obligations of the Member Company are not required to be funded under this Plan unless required by law. Nothing contained in this Plan shall give a
Participant any right, title or interest in any property of a Member Company. 
  
 Section 5.11. Prohibition Against Golden Parachute Payments. Notwithstanding any provision of the Plan to the contrary, no Participant who is an institution-affiliated party as the term is defined
in Section 359.1(h) of the Federal Deposit Insurance Corporation Rules and Regulations (“FDIC Rules and Regs”) shall be entitled to the payment of any Severance Benefit under the Plan to the extent that such payment shall be deemed a
“golden parachute payment” as the term is defined in FDIC Rules and Reg. Section 359.1(f)(i)(ii) or (iii). 
  
 ARTICLE VI 
  
 ADMINISTRATION 
  
 Section 6.1. Plan Administration. The Company shall be the administrator of the Plan for purposes of Section 3(16) of ERISA and shall have responsibility for complying with any ERISA reporting
and disclosure rules applicable to the Plan for any Plan Year. 
  

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 Section 6.2. Plan Committee. In all respects other than as provided in
Section 6.1, the Plan shall be administered and operated by the Committee. The Committee shall have all powers necessary to supervise the administration of the Plan and control its operations. In addition to any powers and authority conferred
to the Committee elsewhere in the Plan or by law, the Committee shall have, by way of illustration but not by way of limitation, the following discretionary powers and authority: 
  

	 	(a)	To allocate fiduciary responsibilities among the named fiduciaries and to designate one or more other persons to carry out fiduciary responsibilities. However, no allocation or
delegation under this Section 6.2(a) shall be effective until the person or persons to whom the responsibilities have been allocated or delegated agree to assume the responsibilities. 

  

	 	(b)	To designate agents to carry out responsibilities relating to the Plan, other than fiduciary responsibilities. 

  

	 	(c)	To employ such legal, accounting, clerical, and other assistance as it may deem appropriate in carrying out the provisions of this Plan, including one or more persons to render
advice with regard to any responsibility any fiduciary may have under the Plan. 

  

	 	(d)	To establish rules and procedures from time to time for the conduct of the Committee’s business and the administration and effectuation of this Plan. 

 

	 	(e)	To administer, interpret, construe and apply this Plan. To decide all questions which may arise or which may be raised under this Plan by any Employee, Participant, former
Participant or other person whatsoever, including but not limited to all questions relating to eligibility to participate in the Plan, the amount of service of any Participant, and the amount of benefits to which any Participant may be entitled.

  

	 	(f)	To determine the manner in which the Severance Benefits of this Plan, or any part thereof, shall be administered. 

  

	 	(g)	To perform or cause to be performed such further acts as it may deem to be necessary, appropriate or convenient in the efficient administration of the Plan.

  
 Any action taken in good faith by the Committee in the exercise
of discretionary authority conferred upon it by this Plan shall be conclusive and binding upon the Participants. All discretionary powers conferred upon the Committee shall be absolute. However, all discretionary powers shall be exercised in a
uniform and nondiscriminatory manner. 
  
 Section 6.3.
Named Fiduciary. The members of the Committee shall be named fiduciaries with respect to this Plan for purposes of Section 402 of ERISA. 
  
 Section 6.4. Indemnification of Committee. The Company shall, to the extent permitted by law, by the purchase of insurance or
otherwise, indemnify and hold harmless each 

  

 9 

 
member of the Committee and each other fiduciary with respect to this Plan for liabilities or expenses they and each of them incur in carrying out their
respective duties under the Plan, other than for any liabilities or expenses arising out of such fiduciary’s gross negligence or willful misconduct. A fiduciary shall not be responsible for any breach of responsibility of any other fiduciary
except to the extent provided in Section 405 of ERISA. 
  
 Section 6.5. Claims Procedure. 
  

	 	(a)	Applications for Benefits and Inquiries. Any application for benefits, inquiries about the Plan or inquiries about present or future rights under the Plan must be submitted
to the Committee in writing by an applicant (or his authorized representative). The address for the Committee is: 

  
 Plan Committee 
 Greater Bay Bancorp 

1900 University Avenue, Suite 600 
 East Palo
Alto, CA 94303 
  

	 	(b)	Denial of Claims. In the event that any application for benefits is denied in whole or in part, the Committee must provide the applicant with written or electronic notice of
the denial of the application, and of the applicant’s right to review the denial. Any electronic notice will comply with the regulations of the U.S. Department of Labor. The notice of denial will be set forth in a manner designed to be
understood by the applicant and will include the following: 

  

	 	(i)	the specific reason or reasons for the denial; 

  

	 	(ii)	references to the specific Plan provisions upon which the denial is based; 

  

	 	(iii)	a description of any additional information or material that the Committee needs to complete the review and an explanation of why such information or material is necessary; and

  

	 	(iv)	an explanation of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the applicant’s right to bring a civil action
under section 502(a) of ERISA following a denial on review of the claim, as described in Section 6.5(d) below. 

  
 This notice of denial will be given to the applicant within ninety (90) days after the Committee receives the application, unless special circumstances require an
extension of time, in which case, the Committee has up to an additional ninety (90) days for processing the application. If an extension of time for processing is required, written notice of the extension will be furnished to the applicant
before the end of the initial ninety (90) day period. 
  

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 This notice of extension will describe the special circumstances necessitating the additional time and the date by which
the Committee is to render its decision on the application. 
  

	 	(c)	Request for a Review. Any person (or that person’s authorized representative) for whom an application for benefits is denied, in whole or in part, may appeal the denial
by submitting a request for a review to the Committee within sixty (60) days after the application is denied. A request for a review shall be in writing and shall be addressed to: 

  
 Plan Committee 
 Greater Bay Bancorp 
 1900 University Avenue, Suite 600 
 East Palo Alto, CA 94303 
  
 A request for review must set forth all of the grounds on which it is based, all facts in support of the request and any other matters that the applicant feels are
pertinent. The applicant (or his representative) shall have the opportunity to submit (or the Committee may require the applicant to submit) written comments, documents, records, and other information relating to his claim. The applicant (or his
representative) shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to his claim. The review shall take into account all comments, documents, records and
other information submitted by the applicant (or his representative) relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. 
  

	 	(d)	Decision on Review. The Committee will act on each request for review within sixty (60) days after receipt of the request, unless special circumstances require an
extension of time (not to exceed an additional sixty (60) days), for processing the request for a review. If an extension for review is required, written notice of the extension will be furnished to the applicant within the initial sixty
(60) day period. This notice of extension will describe the special circumstances necessitating the additional time and the date by which the Committee is to render its decision on the review. The Committee will give prompt, written or
electronic notice of its decision to the applicant. Any electronic notice will comply with the regulations of the U.S. Department of Labor. In the event that the Committee confirms the denial of the application for benefits in whole or in part, the
notice will set forth, in a manner calculated to be understood by the applicant, the following: 

  

	 	(i)	the specific reason or reasons for the denial; 

  

	 	(ii)	references to the specific Plan provisions upon which the denial is based; 

  

	 	(iii)	 a statement that the applicant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other
information relevant to his claim (excluding those protected by legal privilege); and 

  

 11 

	 	(iv)	a statement of the applicant’s right to bring a civil action under section 502(a) of ERISA. 

  

	 	(e)	Rules and Procedures. The Committee will establish rules and procedures, consistent with the Plan and with ERISA, as necessary and appropriate in carrying out its
responsibilities in reviewing benefit claims. The Committee may require an applicant who wishes to submit additional information in connection with an appeal from the denial of benefits to do so at the applicant’s own expense.

  

	 	(f)	Exhaustion of Remedies. No legal action for benefits under the Plan may be brought until the claimant (i) has submitted a written application for benefits in accordance
with the procedures described by Section 6.5(a) above, (ii) has been notified by the Committee that the application is denied, (iii) has filed a written request for a review of the application in accordance with the appeal procedure
described in Section 6.5(c) above, and (iv) has been notified that the Committee has denied the appeal. Notwithstanding the foregoing, if the Committee does not respond to a Participant’s claim or appeal within the relevant time
limits specified in this Section 6.5, the Participant may bring legal action for benefits under the Plan pursuant to Section 502(a) of ERISA. 

  
 ARTICLE VII 
  
 AMENDMENT AND TERMINATION 
  
 This Plan may be amended from time to time, or terminated at the discretion of the Board of Directors by a written resolution adopted by a majority of the
Board of Directors; provided, however, that no amendment or termination shall adversely affect the right to any unpaid Severance Benefit of a Participant whose Layoff termination date has occurred prior to such amendment or termination of the Plan.

  
 ARTICLE VIII 
  
 GENERAL 
  
 Section 8.1. Payment Out of General Assets. The benefits and costs of this Plan shall be paid by the
Company and each Member Company out of its general assets. 
  
 Section 8.2. Welfare Benefit Plan. This Plan is intended to be an employee welfare benefit plan, as defined in Section 3(1), Subtitle A of Title 1 of ERISA. The Plan will be interpreted to effectuate this intent.

  

 12 

 Section 8.3. Gender. The masculine pronoun shall include the feminine pronoun and the
feminine pronoun shall include the masculine pronoun and the singular pronoun shall include the plural pronoun and the plural pronoun shall include the singular pronoun, unless the context clearly indicates otherwise. 
  
 Section 8.4. Limitation on Participant’s Rights.
Nothing in this Plan shall be construed to guarantee terminated Employees any right to be recalled or rehired by a Member Company. 
  
 Section 8.5. Severability. If any provision of the Plan shall be held illegal or invalid, the illegality or invalidity shall not affect
the remaining parts, which shall be enforced as if the illegal or invalid provision had not been included in this Plan. 
  

 13Employment Agreement

 EXHIBIT 10.5 
  
 Employment Agreement 
  
 This Employment Agreement (the “Agreement”) is made and entered into as of January 31, 2006, by and between Greater Bay Bancorp, a
California corporation (the “Company”) and David L. Kalkbrenner (“Kalkbrenner”). 
  
 RECITALS 
  
 A. As of the date of this Agreement, Kalkbrenner has retired as a Director of the Company, having previously served as the President and Chief Executive Officer of the Company from 1996 through 2003 and as the founding President and Chief
Executive Officer of Mid-Peninsula Bank prior to that time; 
  
 B.
The Company desires to employ Kalkbrenner as a fixed term employee so as to continue to avail itself of Kalkbrenner’s knowledge of the banking industry and his strong ties to the clients of Mid-Peninsula Bank and the community in which it
operates. 
  
 C. Accordingly, the parties desire to enter into
this Agreement on the terms and conditions set forth herein. 
  
 NOW THEREFORE, in consideration of the foregoing recitals and the respective undertakings of the Company and Kalkbrenner set forth below, the Company and Kalkbrenner agree as follows: 
  
 1. Duration. This Agreement shall commence on January 31, 2006 and shall
continue until January 31, 2007, unless earlier terminated as provided in Section 4 of this Agreement (the “Employment Term”) or renewed for an additional one-year term at the sole discretion of the Company. 
  
 2. Position, Duties and Compensation. 
  
 (a) Kalkbrenner shall serve as an at-will fixed term employee with the title “Chairman
of the Mid-Peninsula Bank Strategic Development Board.” In that capacity, his responsibilities shall include facilitating development of new and/or retention of existing client relationships, promoting the transition and success of the
Mid-Peninsula Bank Chief Executive Officer and assisting the Company’s Chief Executive Officer and Chairman on corporate matters as requested. 
  
 (b) The Company shall pay Kalkbrenner $10,000 per month (“Base Salary”) during the Employment Term, subject to required withholdings. The Company shall
reimburse Kalkbrenner for all reasonable business expenses authorized by the Company’s CEO or his duly authorized designee. The Company shall also provide Kalkbrenner with office space, office supplies, a laptop computer and cellular telephone
for his use during the Employment Term. 
  
 (c) During the Employment Term,
Kalkbrenner’s existing stock options and shares of restricted stock will continue to be governed by the terms of their respective grant agreements. If 

 the Company decides, in its sole discretion, not to renew this Agreement at the end of the Employment Term, the
restrictions on all remaining shares of restricted stock previously granted to Kalkbrenner shall lapse and the vesting of all unvested stock options previously granted to Kalkbrenner shall accelerate so that 100% of such stock options shall be fully
vested effective on the last day of the Employment Term. 
  
 (d) Continuing
Services. During the Employment Term, Kalkbrenner will be called upon to provide such services for the Company and its subsidiaries as determined from time to time by the Company’s Chief Executive Officer. Kalkbrenner will not be required
to follow a regular daily or weekly work schedule, but Kalkbrenner will be expected to provide services for approximately 20 hours per month. 
  
 (e) Fringe Benefits. The participation of Kalkbrenner and his spouse, during the Employment Term and thereafter, in the Company’s group health and medical
insurance plans will continue to be governed by Section 13 of the Employment Agreement, dated as of January 1, 1999, as amended as of December 11, 2000, between the Company and Kalkbrenner (the “Amended Employment
Agreement”). As a part-time, fixed term employee, Kalkbrenner will not be entitled to participate in any other benefit plans of the Company, including severance and change in control pay plans, and will not earn or be entitled to receive any
vacation benefits.  
  
 3. Covenants. 
  
 3.1 Compliance with Policies. In connection with the
performance of his duties and responsibilities, Kalkbrenner shall comply with all policies, rules and procedures reasonably adopted from time to time by the Company, including, but not limited to, the Company’s Code of Conduct and Ethics,
Insider Trading Policy and Information Security Policy. 
  
 3.2
No Conflicting Employment. Kalkbrenner shall not, during the Employment Term, engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company or its subsidiaries and
affiliates are now involved or become involved during the Employment Term, nor will Kalkbrenner engage in any other activities that conflict with Kalkbrenner’s obligations to the Company. Kalkbrenner shall not provide services to any board of
directors of any for-profit organization without the prior written approval of the Company’s Chief Executive Officer. 
  
 3.3 Confidential Information.  
  
 (a) Confidential Information. Except as herein provided, Kalkbrenner agrees that during and after the term of this Agreement, he (i) shall keep Confidential
Information (as defined below) confidential and shall not directly or indirectly, use, divulge, publish or otherwise disclose or allow to be disclosed any aspect of Confidential Information without the prior written consent of the Company’s
Chief Executive Officer except in the performance of Kalkbrenner’s duties for the Company; (ii) shall refrain from any action or conduct which might reasonably or foreseeably be expected to compromise the confidentiality or proprietary
nature of the Confidential Information; and (iii) shall follow recommendations made by the Company’s Board or the Company’s Chief Executive Officer with respect to Confidential Information. For purposes of 
  

 2 

 this Agreement, “Confidential Information” includes but is not limited to trade secrets, confidential
information, knowledge or data of the Company, or any of its clients, customers, consultants, shareholders, licenses, licensors, vendors or affiliates, that Kalkbrenner may produce, obtain or otherwise acquire or have access to during the course of
his employment by the Company (whether before or after the date of this Agreement), including but not limited to: business plans, records, and affairs; customer files and lists (including but not limited to: customers of the Company on whom
Kalkbrenner called or with whom Kalkbrenner became acquainted during the term of his employment); special customer matters; sales practices; methods and techniques; merchandising concepts, strategies and plans; sources of supply and vendors; special
business relationships with vendors, agents and brokers; promotional materials and information; financial matters; mergers; acquisitions; equipment, technologies and processes; selective personnel matters; inventions; developments; product
specifications; procedures; pricing information; intellectual property; technical data; software programs; finances; operations and production costs; ideas; plans technology; brokers or other entities which refer customers to the Company; proposals;
market analyses; technical services; incentives; customer needs; customer risks or risk factors; customer purchasing patterns; customer renewal or expiration data; customer concerns; pricing and profit margins; and other information which the
Company has developed at significant expenditure of time, effort and/or expense. All Confidential Information and all tangible materials containing Confidential Information are and shall remain the sole property of the Company. 
  
 (b) Third Party Information. Kalkbrenner recognizes that the Company may
have received, and in the future may receive, from third parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited
purposes. Kalkbrenner agrees that he owes the Company and such third parties, during the term of the Agreement and thereafter, a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any
person or firm and to use it in a manner consistent with, and for the limited purposes permitted by, the Company’s agreement with such third party. 
  
 (c) Return of Confidential Material. In the event of Kalkbrenner’s termination of employment with the Company for any reason whatsoever,
Kalkbrenner agrees promptly to surrender and deliver to the Company all records, notes, materials, equipment, drawings, documents and data of any nature pertaining to any Confidential Information or to his employment, and Kalkbrenner will not retain
or take with him any tangible materials containing or pertaining to any Confidential Information that Kalkbrenner may produce, acquire or obtain access to during the term of this Agreement. 
  
 3.4 Nonsolicitation.  
  
 (a) Nonsolicitation of Employees. Kalkbrenner agrees that during the
period of his employment, he will not, directly or indirectly, induce, solicit, recruit or encourage any employee of the Company to leave the employ of the Company, which means that he will not: (i) disclose to any third party the names,
backgrounds or qualifications of any employees or otherwise identify them as potential candidates for employment; or (ii) personally or through any other person approach, recruit, interview or otherwise solicit employees to work for Kalkbrenner
or any other employer. 
  

 3 

 (b) Nonsolicitation of Customers Using Confidential Information. Kalkbrenner agrees that during the
period of his employment and thereafter, he will not solicit, either on behalf of Kalkbrenner of any third party, the business of any client or customer of the Company, whether past, present or prospective, using any Confidential Information.

  
 (c) Nonsolicitation of Identified Customers. In addition
to Kalkbrenner’s obligations under Section 3.4(b), Non-Solicitation of Customers Using Confidential Information, Kalkbrenner further agrees that during the period of his employment, he will not solicit, either on behalf of himself or any
third party, the business of any client or customer of the Company, whether past, present or prospective; (i) whose business Kalkbrenner was directly or indirectly involved in soliciting or recruiting on behalf of the Company during the
one-year period prior to the date of Kalkbrenner’s termination of employment with the Company; or (ii) whose account Kalkbrenner was assigned to or whose account Kalkbrenner serviced during the one-year period prior to the date of
Kalkbrenner’s termination of employment with the Company. Such restriction shall not apply to any customer of the Company that terminated its relationship with the Company and became a customer of a competitor of the Company (other than a
competitor with which Kalkbrenner was affiliated) at least 12 months prior to the acceptance of business by Kalkbrenner. 
  
 4. Termination. This Agreement and all related obligations of the parties under this Agreement (excluding Kalkbrenner’s obligations that
expressly extend beyond termination of employment) shall terminate on January 31, 2007 unless earlier terminated as follows: 
  
 4.1 Termination of Employment With Cause. During the Employment Term, the Company may terminate this Agreement with “Cause”
at any time without advance notice. For purposes of this Agreement, “Cause” shall mean any of the following that has a material adverse effect upon the Company: (i) willful failure or refusal to perform a substantial or material
lawful directive of the Company’s Board or the Company’s Chief Executive Officer; (ii) willful misconduct or deliberate violation of any fiduciary obligations or other duties owed the Company; (iii) performance of material duties
in a grossly negligent manner or material violation of applicable laws or regulations in the performance of Kalkbrenner’s duties as set forth herein; (iv) Kalkbrenner’s conviction of a felony; or (v) Kalkbrenner’s conviction
of a crime involving moral turpitude, fraudulent conduct or dishonest conduct. In the event the Company terminates this Agreement for Cause, Kalkbrenner shall be paid only his Base Salary earned through the date of termination. 
  
 4.2 Termination of Employment Without Cause. If the
Company terminates this Agreement during the Employment Term without Cause, Kalkbrenner shall be paid his Base Salary through the end of the Employment Term payable in one lump sum within 30 days of the date of termination. 
  
 4.3 Termination Due to Death or Permanent Disability.
This Agreement shall terminate automatically upon death or permanent disability of Kalkbrenner. In such event, 
  

 4 

 Kalkbrenner or, in the case of death, Kalkbrenner’s estate shall receive Kalkbrenner’s Base Salary earned
through the date of such occurrence. For purposes of this Agreement, the term “permanent disability” means a medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months and which renders Kalkbrenner unable to engage in any substantial gainful activity. Whether or not Kalkbrenner meets these conditions will be determined by the Company in its sole discretion. 

 
 5. Miscellaneous. 
  
 5.1 Waiver. The waiver of the breach of any provision of this Agreement shall not operate or be construed as a waiver
of any subsequent breach of the same or other provision hereof. 
  
 5.2 Notices. All notices and other communications under this Agreement shall be in writing and shall be given by personal or courier delivery, facsimile or first class mail, certified or registered with return receipt requested, and
shall be deemed to have been duly given upon receipt if personally delivered or delivered by courier, on the date of transmission if transmitted by facsimile, or three days after mailing if mailed, to the headquarters addresses of the Company and
the address of Kalkbrenner contained in the records of the Company at the time of such notice. Any party may change such party’s address for notices by notice duly given pursuant to this Section 5.2. 
  
 5.3 Headings. The section headings used in this Agreement are intended
for convenience of reference and shall not by themselves determine the construction or interpretation of any provision of this Agreement. 
  
 5.4 Governing Law. This Agreement shall be governed by the laws of the State of California, without regard to the choice of law provisions of
California. Kalkbrenner expressly consents to personal jurisdiction in the state and federal courts located in California for any lawsuit arising from or relating to this Agreement, without regard to his then-current residence or domicile.

  
 5.5 Survival of Obligations. This Agreement shall be
binding upon and inure to the benefit of the executors, administrators, heirs, successors and assigns of the parties; provided, however, that except as herein expressly provided, this Agreement shall not be assignable either by the Company (except
to an affiliate or successor of the Company) or by Kalkbrenner without the prior written consent of the other parties. 
  
 5.6 Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one and the same
Agreement. 
  
 5.7 Withholding. All sums payable to the
Kalkbrenner hereunder shall be reduced by all federal, state, local and other withholdings and similar taxes and payments required by applicable law. 
  

 5 

 5.8 Enforcement. If any portion of this Agreement is determined to be invalid or unenforceable,
such portion shall be adjusted, rather than voided, to achieve the intent of the parties to the extent possible, and the remainder shall be enforced to the maximum extent possible. 
  
 5.9 Arbitration. Kalkbrenner and the Company mutually agree that they will submit all disputes arising
under this Agreement or arising out of or related to Kalkbrenner’s employment with the Company to final and binding arbitration in Palo Alto, California, under the National Rules for the Resolution of Employment Disputes of the American
Arbitration Association (AAA Rules) or, if the parties mutually agree, under the Employment Arbitration Rules and Procedures of JAMS. The arbitrator selected shall have the authority to grant Kalkbrenner or the Company all remedies otherwise
available by law. 
  
 Notwithstanding anything to the contrary in
the AAA or JAMS Rules, the arbitration shall provide (i) for written discovery and depositions adequate to give the parties access to documents and witnesses that are essential to the dispute and (ii) for a written decision by the
arbitrator that includes the essential findings and conclusions upon which the decision is based. Kalkbrenner and the Company shall each bear his or its own costs and attorneys’ fees incurred in conducting the arbitration, and, except in such
disputes where Kalkbrenner asserts a claim under a state or federal statute prohibiting discrimination in employment (“a Statutory Claim”), or as otherwise required by law, shall split equally the fees and administrative costs charged by
the arbitrator and the arbitration services. In disputes where Kalkbrenner asserts a Statutory Claim against the Company, Kalkbrenner shall be required to pay only the arbitration filing fee to the extent such filing fee does not exceed the fee to
file a complaint in state or federal court. The Company shall pay the balance of the arbitrator’s fees and administrative costs. 
  
 The prevailing party in the arbitration, as determined by the arbitrator, shall be entitled to recover his or its reasonable attorneys’ fees and
costs, including the costs or fees charged by the arbitrator and the arbitration service. In disputes where Kalkbrenner asserts a Statutory Claim, reasonable attorneys’ fees shall be awarded by the arbitrator based on the same standard as such
fees would be awarded if the Statutory Claim had been asserted in state or federal court. 
  
 5.10 Entire Agreement; Modifications. Except for Section 13 of the Amended Employment Agreement, which is herein incorporated by reference, this Agreement represents the entire understanding among the
parties with respect to the subject matter of this Agreement, and this Agreement supersedes any and all prior and contemporaneous understandings, agreements, plans, and negotiations, whether written or oral, with respect to the subject matter
hereof, including the Consulting Agreement, dated January 1, 2004, between the Company and Kalkbrenner which expired by its terms on December 31, 2005. All modifications to the Agreement must be in writing and signed by each of the parties
hereto. 
  

 6 

 IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the date set forth in the first
paragraph. 
  

			
	GREATER BAY BANCORP
		
	By:	 	 /s/ Byron A. Scordelis

	 	 	Byron A. Scordelis
	 	 	President and Chief Executive Officer
	
	 /s/ David L. Kalkbrenner

	David L. Kalkbrenner

  

 7

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