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                                                                   Exhibit 10.45

                            SILICON VALLEY BANCSHARES

                           1997 EQUITY INCENTIVE PLAN

                            ADOPTED DECEMBER 19, 1996
                     APPROVED BY SHAREHOLDERS APRIL 17, 1997
                         AMENDED AS OF SEPTEMBER 8, 1997
                           AMENDED AS OF JULY 20, 2000

1.     PURPOSES.

       (a)    The purpose of the Plan is to provide a means by which selected
Employees and Directors of and Consultants to the Company, and its Affiliates,
may be given an opportunity to benefit from increases in value of the stock of
the Company through the granting of (i) Incentive Stock Options, (ii)
Nonstatutory Stock Options, (iii) stock bonuses, (iv) rights to purchase
restricted stock, and (v) stock appreciation rights, all as defined below.

       (b)    The Company, by means of the Plan, seeks to retain the services of
persons who are now Employees or Directors of or Consultants to the Company or
its Affiliates, to secure and retain the services of new Employees, Directors
and Consultants, and to provide incentives for such persons to exert maximum
efforts for the success of the Company and its Affiliates.

       (c)    The Company intends that the Stock Awards issued under the Plan
shall, in the discretion of the Board or any Committee to which responsibility
for administration of the Plan has been delegated pursuant to subsection 3(c),
be either (i) Options granted pursuant to Section 6 hereof, including Incentive
Stock Options and Nonstatutory Stock Options, (ii) stock bonuses or rights to
purchase restricted stock granted pursuant to Section 7 hereof, or (iii) stock
appreciation rights granted pursuant to Section 8 hereof. All Options shall be
separately designated Incentive Stock Options or Nonstatutory Stock Options at
the time of grant, and in such form as issued pursuant to Section 6, and a
separate certificate or certificates will be issued for shares purchased on
exercise of each type of Option.

2.     DEFINITIONS.

       (a)    "AFFILIATE" means any parent corporation or subsidiary
corporation, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f) respectively, of the Code.

       (b)    "BOARD" means the Board of Directors of the Company.

       (c)    "CODE" means the Internal Revenue Code of 1986, as amended.

       (d)    "COMMITTEE" means a Committee appointed by the Board in accordance
with subsection 3(c) of the Plan.

       (e)    "COMPANY" means Silicon Valley Bancshares, a California
corporation.

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       (f)    "CONCURRENT STOCK APPRECIATION RIGHT" or "CONCURRENT RIGHT" means
a right granted pursuant to subsection 8(b)(2) of the Plan.

       (g)    "CONSULTANT" means any person, including an advisor, engaged by
the Company or an Affiliate to render consulting services and who is compensated
for such services, provided that the term "Consultant" shall not include
Directors who are paid only a director's fee by the Company or who are not
compensated by the Company for their services as Directors.

       (h)    "CONTINUOUS STATUS AS AN EMPLOYEE, DIRECTOR OR CONSULTANT" means
that the service of an individual to the Company, whether as an Employee,
Director or Consultant, is not interrupted or terminated. The Board or the chief
executive officer of the Company may determine, in that party's sole discretion,
whether Continuous Status as an Employee, Director or Consultant shall be
considered interrupted in the case of: (i) any leave of absence approved by the
Board or the chief executive officer of the Company, including sick leave,
military leave, or any other personal leave; or (ii) transfers between the
Company, Affiliates or their successors.

       (i)    "COVERED EMPLOYEE" means the chief executive officer and the four
(4) other highest compensated officers of the Company for whom total
compensation is required to be reported to shareholders under the Exchange Act,
as determined for purposes of Section 162(m) of the Code.

       (j)    "DIRECTOR" means a member of the Board.

       (k)    "EMPLOYEE" means any person, including Officers and Directors,
employed by the Company or any Affiliate of the Company. Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.

       (l)    "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

       (m)    "FAIR MARKET VALUE" means, as of any date, the value of the common
stock of the Company determined as follows:

              (1)    If the common stock is listed on any established stock
exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap Market,
the Fair Market Value of a share of common stock shall be the closing sales
price for such stock (or the closing bid, if no sales were reported) as quoted
on such exchange or market (or the exchange or market with the greatest volume
of trading in the Company's common stock) on the day of determination, as
reported in THE WALL STREET JOURNAL or such other source as the Board deems
reliable.

              (2)    In the absence of such markets for the common stock, the
Fair Market Value shall be determined in good faith by the Board.

       (n)    "INCENTIVE STOCK OPTION" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

       (o)    "INDEPENDENT STOCK APPRECIATION RIGHT" or "INDEPENDENT RIGHT"
means a right granted pursuant to subsection 8(b)(3) of the Plan.

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       (p)    "NON-EMPLOYEE DIRECTOR" means a Director who either (i) is not a
current Employee or Officer of the Company or its parent or subsidiary, does not
receive compensation (directly or indirectly) from the Company or its parent or
subsidiary for services rendered as a consultant or in any capacity other than
as a Director (except for an amount as to which disclosure would not be required
under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act
("Regulation S-K")), does not possess an interest in any other transaction as to
which disclosure would be required under Item 404(a) of Regulation S-K, and is
not engaged in a business relationship as to which disclosure would be required
under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a
"non-employee director" for purposes of Rule 16b-3.

       (q)    "NONSTATUTORY STOCK OPTION" means an Option not intended to
qualify as an Incentive Stock Option.

       (r)    "OFFICER" means a person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

       (s)    "OPTION" means a stock option granted pursuant to the Plan.

       (t)    "OPTION AGREEMENT" means a written agreement between the Company
and an Optionee evidencing the terms and conditions of an individual Option
grant. Each Option Agreement shall be subject to the terms and conditions of the
Plan.

       (u)    "OPTIONEE" means a person to whom an Option is granted pursuant to
the Plan or, if applicable, such other person who holds an outstanding Option.

       (v)    "OUTSIDE DIRECTOR" means a Director who either (i) is not a
current employee of the Company or an "affiliated corporation" (within the
meaning of the Treasury regulations promulgated under Section 162(m) of the
Code), is not a former employee of the Company or an "affiliated corporation"
receiving compensation for prior services (other than benefits under a tax
qualified pension plan), was not an officer of the Company or an "affiliated
corporation" at any time, and is not currently receiving direct or indirect
remuneration from the Company or an "affiliated corporation" for services in any
capacity other than as a Director, or (ii) is otherwise considered an "outside
director" for purposes of Section 162(m) of the Code.

       (w)    "PLAN" means this 1997 Equity Incentive Plan.

       (x)    "RULE 16B-3" means Rule 16b-3 of the Exchange Act or any successor
to Rule 16b-3, as in effect with respect to the Company at the time discretion
is being exercised regarding the Plan.

       (y)    "SECURITIES ACT" means the Securities Act of 1933, as amended.

       (z)    "STOCK APPRECIATION RIGHT" means any of the various types of
rights which may be granted under Section 8 of the Plan.

       (aa)   "STOCK AWARD" means any right granted under the Plan, including
any Option, any stock bonus, any right to purchase restricted stock, and any
Stock Appreciation Right.

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       (bb)   "STOCK AWARD AGREEMENT" means a written agreement between the
Company and a holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant. Each Stock Award Agreement shall be subject to the
terms and conditions of the Plan.

       (cc)   "TANDEM STOCK APPRECIATION RIGHT" or "TANDEM RIGHT" means a right
granted pursuant to subsection 8(b)(1) of the Plan.

3.     ADMINISTRATION.

       (a)    The Plan shall be administered by the Board unless and until the
Board delegates administration to a Committee, as provided in subsection 3(c).

       (b)    The Board shall have the power, subject to, and within the
limitations of, the express provisions of the Plan:

              (1)    To determine from time to time which of the persons
eligible under the Plan shall be granted Stock Awards; when and how each Stock
Award shall be granted; whether a Stock Award will be an Incentive Stock Option,
a Nonstatutory Stock Option, a stock bonus, a right to purchase restricted
stock, a Stock Appreciation Right, or a combination of the foregoing; the
provisions of each Stock Award granted (which need not be identical), including
the time or times when a person shall be permitted to receive stock pursuant to
a Stock Award; whether a person shall be permitted to receive stock upon
exercise of an Independent Stock Appreciation Right; and the number of shares
with respect to which a Stock Award shall be granted to each such person.

              (2)    To construe and interpret the Plan and Stock Awards granted
under it, and to establish, amend and revoke rules and regulations for its
administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Stock Award Agreement,
in a manner and to the extent it shall deem necessary or expedient to make the
Plan fully effective.

              (3)    To amend the Plan or a Stock Award as provided in Section
14.

              (4)    Generally, to exercise such powers and to perform such acts
as the Board deems necessary or expedient to promote the best interests of the
Company which are not in conflict with the provisions of the Plan.

       (c)    The Board may delegate administration of the Plan to a committee
or committees of the Board composed of one (1) or more members (the
"Committee"). In the discretion of the Board, the Committee may be composed of
two (2) or more Non-Employee Directors and/or Outside Directors. If
administration is delegated to a Committee, the Committee shall have, in
connection with the administration of the Plan, the powers theretofore possessed
by the Board, (and references in this Plan to the Board shall thereafter be to
the Committee), subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board. The
Board may abolish the Committee at any time and revest in the Board the
administration of the Plan.

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4.     SHARES SUBJECT TO THE PLAN.

       (a)    Subject to the provisions of Section 13 relating to adjustments
upon changes in stock, the stock that may be issued pursuant to Stock Awards
shall not exceed in the aggregate nine hundred thousand (900,000) shares of the
Company's common stock. If any Stock Award shall for any reason expire or
otherwise terminate, in whole or in part, without having been exercised in full,
the stock not acquired under such Stock Award shall revert to and again become
available for issuance under the Plan. Shares subject to Stock Appreciation
Rights exercised in accordance with Section 8 of the Plan shall not be available
for subsequent issuance under the Plan.

       (b)    The stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise.

5.     ELIGIBILITY.

       (a)    Incentive Stock Options and Stock Appreciation Rights appurtenant
thereto may be granted only to Employees. Stock Awards other than Incentive
Stock Options and Stock Appreciation Rights appurtenant thereto may be granted
only to Employees, Directors or Consultants.

       (b)    No person shall be eligible for the grant of an Incentive Stock
Option if, at the time of grant, such person owns (or is deemed to own pursuant
to Section 424(d) of the Code) stock possessing more than ten percent (10%) of
the total combined voting power of all classes of stock of the Company or of any
of its Affiliates unless the exercise price of such Option is at least one
hundred ten percent (110%) of the Fair Market Value of such stock at the date of
grant and the Option is not exercisable after the expiration of five (5) years
from the date of grant.

       (c)    Subject to the provisions of Section 13 relating to adjustments
upon changes in stock, no person shall be eligible to be granted Options and
Stock Appreciation Rights covering more than two hundred fifty thousand
(250,000) shares of the Company's common stock in any calendar year.

6.     OPTION PROVISIONS.

       Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. The provisions of separate
Options need not be identical, but each Option shall include (through
incorporation of provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:

       (a)    TERM. No Option shall be exercisable after the expiration of ten
(10) years from the date it was granted.

       (b)    PRICE. The exercise price of each Incentive Stock Option shall be
not less than one hundred percent (100%) of the Fair Market Value of the stock
subject to the Option on the date the Option is granted; the exercise price of
each Nonstatutory Stock Option shall be not less than eighty-five percent (85%)
the Fair Market Value of the stock subject to the Option on the date the Option
is granted. Notwithstanding the foregoing, an Option (whether an Incentive Stock
Option or a Nonstatutory Stock Option) may be granted with an exercise price
lower than that set forth in the

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preceding sentence if such Option is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of Section
424(a) of the Code.

       (c)    CONSIDERATION. The purchase price of stock acquired pursuant to an
Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash at the time the Option is exercised, or (ii) at
the discretion of the Board or the Committee, at the time of the grant of the
Option, (A) by delivery to the Company of other common stock of the Company, (B)
according to a deferred payment or other arrangement (which may include, without
limiting the generality of the foregoing, the use of other common stock of the
Company) with the person to whom the Option is granted or to whom the Option is
transferred pursuant to subsection 6(d), or (C) in any other form of legal
consideration acceptable to the Board. In the case of any deferred payment
arrangement, interest shall be compounded at least annually and shall be charged
at the minimum rate of interest necessary to avoid the treatment as interest,
under any applicable provisions of the Code, of any amounts other than amounts
stated to be interest under the deferred payment arrangement.

       (d)    TRANSFERABILITY. An Incentive Stock Option shall not be
transferable except by will or by the laws of descent and distribution, and
shall be exercisable during the lifetime of the person to whom the Incentive
Stock Option is granted only by such person. A Nonstatutory Stock Option shall
only be transferable by the Optionee upon such terms and conditions as are set
forth in the Option Agreement for such Nonstatutory Stock Option, as the Board
or the Committee shall determine in its sole discretion. The person to whom the
Option is granted may, by delivering written notice to the Company, in a form
satisfactory to the Company, designate a third party who, in the event of the
death of the Optionee, shall thereafter be entitled to exercise the Option.

       (e)    VESTING. The total number of shares of stock subject to an Option
may, but need not, be allotted in periodic installments (which may, but need
not, be equal). The Option Agreement may provide that from time to time during
each of such installment periods, the Option may become exercisable ("vest")
with respect to some or all of the shares allotted to that period, and may be
exercised with respect to some or all of the shares allotted to such period
and/or any prior period as to which the Option became vested but was not fully
exercised. The Option may be subject to such other terms and conditions on the
time or times when it may be exercised (which may be based on performance or
other criteria) as the Board may deem appropriate. The provisions of this
subsection 6(e) are subject to any Option provisions governing the minimum
number of shares as to which an Option may be exercised.

       (f)    TERMINATION OF EMPLOYMENT OR RELATIONSHIP AS A DIRECTOR OR
CONSULTANT. In the event an Optionee's Continuous Status as an Employee,
Director or Consultant terminates (other than upon the Optionee's death or
disability or for Cause), the Optionee may exercise his or her Option (to the
extent that the Optionee was entitled to exercise it as of the date of
termination) but only within such period of time ending on the earlier of (i)
the date three (3) months following the termination of the Optionee's Continuous
Status as an Employee, Director or Consultant (or such longer or shorter period
specified in the Option Agreement), or (ii) the expiration of the term of the
Option as set forth in the Option Agreement. If, at the date of termination, the
Optionee is not entitled to exercise his or her entire Option, the shares
covered by the unexercisable portion of the Option shall revert to and again
become available for issuance under the Plan. If, after termination, the
Optionee does not exercise his or her Option within the time specified in the
Option Agreement, the Option shall terminate, and the shares covered by such
Option shall revert to and again become available for issuance under the Plan.

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       In the event an Optionee's Continuous Status as an Employee, Director or
Consultant terminates for Cause, then the Option shall immediately terminate,
and the shares covered by such Option shall revert to and again become available
for issuance under the Plan. "Cause" shall be defined as an act of embezzlement,
fraud, dishonesty, or breach of fiduciary duty to the Company, a deliberate
disregard of the rules of the Company which results in loss, damage or injury to
the Company, any unauthorized disclosure of any of the secrets or confidential
information of the Company, inducing any client or customer of the Company to
break any contract with the Company or inducing any principal for whom the
Company acts as agent to terminate such agency relations, or engaging in any
conduct which constitutes unfair competition with the Company, or any act which
results in Optionee being removed from any office of the Company by any bank
regulatory agency.

       An Optionee's Option Agreement may also provide that if the exercise of
the Option following the termination of the Optionee's Continuous Status as an
Employee, Director, or Consultant (other than upon the Optionee's death or
disability) would result in liability under Section 16(b) of the Exchange Act,
then the Option shall terminate on the earlier of (i) the expiration of the term
of the Option set forth in the Option Agreement, or (ii) the tenth (10th) day
after the last date on which such exercise would result in such liability under
Section 16(b) of the Exchange Act. Finally, an Optionee's Option Agreement may
also provide that if the exercise of the Option following the termination of the
Optionee's Continuous Status as an Employee, Director or Consultant (other than
upon the Optionee's death or disability) would be prohibited at any time solely
because the issuance of shares would violate the registration requirements under
the Securities Act, then the Option shall terminate on the earlier of (i) the
expiration of the term of the Option, or (ii) the expiration of a period of
three (3) months after the termination of the Optionee's Continuous Status as an
Employee, Director or Consultant during which the exercise of the Option would
not be in violation of such registration requirements.

       (g)    DISABILITY OF OPTIONEE. In the event an Optionee's Continuous
Status as an Employee, Director or Consultant terminates as a result of the
Optionee's disability, the Optionee may exercise his or her Option (to the
extent that the Optionee was entitled to exercise it as of the date of
termination), but only within such period of time ending on the earlier of (i)
the date twelve (12) months following such termination (or such longer or
shorter period specified in the Option Agreement), or (ii) the expiration of the
term of the Option as set forth in the Option Agreement. If, at the date of
termination, the Optionee is not entitled to exercise his or her entire Option,
the shares covered by the unexercisable portion of the Option shall revert to
and again become available for issuance under the Plan. If, after termination,
the Optionee does not exercise his or her Option within the time specified
herein, the Option shall terminate, and the shares covered by such Option shall
revert to and again become available for issuance under the Plan.

       (h)    DEATH OF OPTIONEE. In the event an Optionee's Continuous Status as
an Employee, Director or Consultant terminates as a result of Optionee's death,
the Option may be exercised (to the extent the Optionee was entitled to exercise
the Option as of the date of death) by the Optionee's estate, by a person who
acquired the right to exercise the Option by bequest or inheritance or by a
person designated to exercise the option upon the Optionee's death pursuant to
subsection 6(d), but only within the period ending on the earlier of (i) the
date twelve (12) months following the date of death (or such longer or shorter
period specified in the Option Agreement), or (ii) the expiration of the term of
such Option as set forth in the Option Agreement. If, at the time of death, the
Optionee was not entitled to exercise his or her entire Option, the shares
covered by the unexercisable portion of the

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Option shall revert to and again become available for issuance under the Plan.
If, after death, the Option is not exercised within the time specified herein,
the Option shall terminate, and the shares covered by such Option shall revert
to and again become available for issuance under the Plan.

       (i)    EARLY EXERCISE. The Option may, but need not, include a provision
whereby the Optionee may elect at any time while an Employee, Director or
Consultant to exercise the Option as to any part or all of the shares subject to
the Option prior to the full vesting of the Option. Any unvested shares so
purchased may be subject to a repurchase right in favor of the Company or to any
other restriction the Board determines to be appropriate.

7.     TERMS OF STOCK BONUSES AND PURCHASES OF RESTRICTED STOCK.

       Each stock bonus or restricted stock purchase agreement shall be in such
form and shall contain such terms and conditions as the Board or the Committee
shall deem appropriate. The terms and conditions of stock bonus or restricted
stock purchase agreements may change from time to time, and the terms and
conditions of separate agreements need not be identical, but each stock bonus or
restricted stock purchase agreement shall include (through incorporation of
provisions hereof by reference in the agreement or otherwise) the substance of
each of the following provisions as appropriate:

       (a)    PURCHASE PRICE. The purchase price under each restricted stock
purchase agreement shall be such amount as the Board or Committee shall
determine and designate in such Stock Award Agreement, but in no event shall the
purchase price be less than eighty-five percent (85%) of the stock's Fair Market
Value on the date such award is made. Notwithstanding the foregoing, the Board
or the Committee may determine that eligible participants in the Plan may be
awarded stock pursuant to a stock bonus agreement in consideration for past
services actually rendered to the Company or for its benefit.

       (b)    TRANSFERABILITY. Rights under a stock bonus or restricted stock
purchase agreement shall be transferable by the grantee only upon such terms and
conditions as are set forth in the applicable Stock Award Agreement, as the
Board or the Committee shall determine in its discretion, so long as stock
awarded under such Stock Award Agreement remains subject to the terms of the
agreement.

       (c)    CONSIDERATION. The purchase price of stock acquired pursuant to a
stock purchase agreement shall be paid either: (i) in cash at the time of
purchase; (ii) at the discretion of the Board or the Committee, according to a
deferred payment or other arrangement with the person to whom the stock is sold;
or (iii) in any other form of legal consideration that may be acceptable to the
Board or the Committee in its discretion. Notwithstanding the foregoing, the
Board or the Committee to which administration of the Plan has been delegated
may award stock pursuant to a stock bonus agreement in consideration for past
services actually rendered to the Company or for its benefit.

       (d)    VESTING. Shares of stock sold or awarded under the Plan may, but
need not, be subject to a repurchase option in favor of the Company in
accordance with a vesting schedule to be determined by the Board or the
Committee.

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       (e)    TERMINATION OF EMPLOYMENT OR RELATIONSHIP AS A DIRECTOR OR
CONSULTANT. In the event a Participant's Continuous Status as an Employee,
Director or Consultant terminates, the Company may repurchase or otherwise
reacquire any or all of the shares of stock held by that person which have not
vested as of the date of termination under the terms of the stock bonus or
restricted stock purchase agreement between the Company and such person.

8.     STOCK APPRECIATION RIGHTS.

       (a)    The Board or Committee shall have full power and authority,
exercisable in its sole discretion, to grant Stock Appreciation Rights under the
Plan to Employees or Directors of or Consultants to, the Company or its
Affiliates. To exercise any outstanding Stock Appreciation Right, the holder
must provide written notice of exercise to the Company in compliance with the
provisions of the Stock Award Agreement evidencing such right. Except as
provided in subsection 5(c), no limitation shall exist on the aggregate amount
of cash payments the Company may make under the Plan in connection with the
exercise of a Stock Appreciation Right.

       (b)    Three types of Stock Appreciation Rights shall be authorized for
issuance under the Plan:

              (1)    TANDEM STOCK APPRECIATION RIGHTS. Tandem Stock Appreciation
Rights will be granted appurtenant to an Option, and shall, except as
specifically set forth in this Section 8, be subject to the same terms and
conditions applicable to the particular Option grant to which it pertains.
Tandem Stock Appreciation Rights will require the holder to elect between the
exercise of the underlying Option for shares of stock and the surrender, in
whole or in part, of such Option for an appreciation distribution. The
appreciation distribution payable on the exercised Tandem Right shall be in cash
(or, if so provided, in an equivalent number of shares of stock based on Fair
Market Value on the date of the Option surrender) in an amount up to the excess
of (A) the Fair Market Value (on the date of the Option surrender) of the number
of shares of stock covered by that portion of the surrendered Option in which
the Optionee is vested over (B) the aggregate exercise price payable for such
vested shares.

              (2)    CONCURRENT STOCK APPRECIATION RIGHTS. Concurrent Rights
will be granted appurtenant to an Option and may apply to all or any portion of
the shares of stock subject to the underlying Option and shall, except as
specifically set forth in this Section 8, be subject to the same terms and
conditions applicable to the particular Option grant to which it pertains. A
Concurrent Right shall be exercised automatically at the same time the
underlying Option is exercised with respect to the particular shares of stock to
which the Concurrent Right pertains. The appreciation distribution payable on an
exercised Concurrent Right shall be in cash (or, if so provided, in an
equivalent number of shares of stock based on Fair Market Value on the date of
the exercise of the Concurrent Right) in an amount equal to such portion as
shall be determined by the Board or the Committee at the time of the grant of
the excess of (A) the aggregate Fair Market Value (on the date of the exercise
of the Concurrent Right) of the vested shares of stock purchased under the
underlying Option which have Concurrent Rights appurtenant to them over (B) the
aggregate exercise price paid for such shares.

              (3)    INDEPENDENT STOCK APPRECIATION RIGHTS. Independent Rights
will be granted independently of any Option and shall, except as specifically
set forth in this Section 8, be subject to the same terms and conditions
applicable to Nonstatutory Stock Options as set forth in

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Section 6. They shall be denominated in share equivalents. The appreciation
distribution payable on the exercised Independent Right shall be not greater
than an amount equal to the excess of (A) the aggregate Fair Market Value (on
the date of the exercise of the Independent Right) of a number of shares of
Company stock equal to the number of share equivalents in which the holder is
vested under such Independent Right, and with respect to which the holder is
exercising the Independent Right on such date, over (B) the aggregate Fair
Market Value (on the date of the grant of the Independent Right) of such number
of shares of Company stock. The appreciation distribution payable on the
exercised Independent Right shall be in cash or, if so provided, in an
equivalent number of shares of stock based on Fair Market Value on the date of
the exercise of the Independent Right.

9.     CANCELLATION AND RE-GRANT OF OPTIONS.

       (a)    The Board or the Committee shall have the authority to effect, at
any time and from time to time, (i) the repricing of any outstanding Options
and/or any Stock Appreciation Rights under the Plan and/or (ii) with the consent
of the affected holders of Options and/or Stock Appreciation Rights, the
cancellation of any outstanding Options and/or any Stock Appreciation Rights
under the Plan and the grant in substitution therefor of new Options and/or
Stock Appreciation Rights under the Plan covering the same or different numbers
of shares of stock, but having an exercise price per share not less than
eighty-five percent (85%) of the Fair Market Value (one hundred percent (100%)
of the Fair Market Value in the case of an Incentive Stock Option) or, in the
case of a 10% shareholder (as described in subsection 5(b)) receiving a new
grant of an Incentive Stock Option, not less than one hundred ten percent (110%)
of the Fair Market Value) per share of stock on the new grant date.
Notwithstanding the foregoing, the Board or the Committee may grant an Option
and/or Stock Appreciation Right with an exercise price lower than that set forth
above if such Option and/or Stock Appreciation Right is granted as part of a
transaction to which section 424(a) of the Code applies.

       (b)    Shares subject to an Option or Stock Appreciation Right canceled
under this Section 9 shall continue to be counted against the maximum award of
Options and Stock Appreciation Rights permitted to be granted pursuant to
subsection 5(c) of the Plan. The repricing of an Option and/or Stock
Appreciation Right under this Section 9, resulting in a reduction of the
exercise price, shall be deemed to be a cancellation of the original Option
and/or Stock Appreciation Right and the grant of a substitute Option and/or
Stock Appreciation Right; in the event of such repricing, both the original and
the substituted Options and Stock Appreciation Rights shall be counted against
the maximum awards of Options and Stock Appreciation Rights permitted to be
granted pursuant to subsection 5(c) of the Plan. The provisions of this
subsection 9(b) shall be applicable only to the extent required by Section
162(m) of the Code.

10.    COVENANTS OF THE COMPANY.

       (a)    During the terms of the Stock Awards, the Company shall keep
available at all times the number of shares of stock required to satisfy such
Stock Awards.

                                       10
<PAGE>

       (b)    The Company shall seek to obtain from each regulatory commission
or agency having jurisdiction over the Plan such authority as may be required to
issue and sell shares of stock upon exercise of the Stock Award; provided,
however, that this undertaking shall not require the Company to register under
the Securities Act either the Plan, any Stock Award or any stock issued or
issuable pursuant to any such Stock Award. If, after reasonable efforts, the
Company is unable to obtain from any such regulatory commission or agency the
authority which counsel for the Company deems necessary for the lawful issuance
and sale of stock under the Plan, the Company shall be relieved from any
liability for failure to issue and sell stock upon exercise of such Stock Awards
unless and until such authority is obtained.

11.    USE OF PROCEEDS FROM STOCK.

       Proceeds from the sale of stock pursuant to Stock Awards shall constitute
general funds of the Company.

12.    MISCELLANEOUS.

       (a)    The Board shall have the power to accelerate the time at which a
Stock Award may first be exercised or the time during which a Stock Award or any
part thereof will vest pursuant to subsection 6(e), 7(d) or 8(b),
notwithstanding the provisions in the Stock Award stating the time at which it
may first be exercised or the time during which it will vest.

       (b)    Neither an Employee, Director or Consultant nor any person to whom
a Stock Award is transferred under subsection 6(d), 7(b), or 8(b) shall be
deemed to be the holder of, or to have any of the rights of a holder with
respect to, any shares subject to such Stock Award unless and until such person
has satisfied all requirements for exercise of the Stock Award pursuant to its
terms.

       (c)    Nothing in the Plan or any instrument executed or Stock Award
granted pursuant thereto shall confer upon any Employee, Director, Consultant or
other holder of Stock Awards any right to continue in the employ of the Company
or any Affiliate (or to continue acting as a Director or Consultant) or shall
affect the right of the Company or any Affiliate to terminate the employment of
any Employee with or without cause the right of the Company's Board of Directors
and/or the Company's shareholders to remove any Director as provided in the
Company's Bylaws and the provisions of the California Corporations Code, or the
right to terminate the relationship of any Consultant subject to the terms of
such Consultant's agreement with the Company or Affiliate.

       (d)    To the extent that the aggregate Fair Market Value (determined at
the time of grant) of stock with respect to which Incentive Stock Options are
exercisable for the first time by any Optionee during any calendar year under
all plans of the Company and its Affiliates exceeds one hundred thousand dollars
($100,000), the Options or portions thereof which exceed such limit (according
to the order in which they were granted) shall be treated as Nonstatutory Stock
Options.

       (e)    The Company may require any person to whom a Stock Award is
granted, or any person to whom a Stock Award is transferred pursuant to
subsection 6(d), 7(b) or 8(b), as a condition of exercising or acquiring stock
under any Stock Award, (1) to give written assurances satisfactory to the
Company as to such person's knowledge and experience in financial and business
matters and/or to employ a purchaser representative reasonably satisfactory to
the Company who is knowledgeable and

                                       11
<PAGE>

experienced in financial and business matters, and that he or she is capable of
evaluating, alone or together with the purchaser representative, the merits and
risks of exercising the Stock Award; and (2) to give written assurances
satisfactory to the Company stating that such person is acquiring the stock
subject to the Stock Award for such person's own account and not with any
present intention of selling or otherwise distributing the stock. The foregoing
requirements, and any assurances given pursuant to such requirements, shall be
inoperative if (i) the issuance of the shares upon the exercise or acquisition
of stock under the Stock Award has been registered under a then currently
effective registration statement under the Securities Act, or (ii) as to any
particular requirement, a determination is made by counsel for the Company that
such requirement need not be met in the circumstances under the then applicable
securities laws. The Company may, upon advice of counsel to the Company, place
legends on stock certificates issued under the Plan as such counsel deems
necessary or appropriate in order to comply with applicable securities laws,
including, but not limited to, legends restricting the transfer of the stock.

       (f)    To the extent provided by the terms of a Stock Award Agreement,
the person to whom a Stock Award is granted may satisfy any federal, state or
local tax withholding obligation relating to the exercise or acquisition of
stock under a Stock Award by any of the following means or by a combination of
such means: (1) tendering a cash payment; (2) authorizing the Company to
withhold shares from the shares of the common stock otherwise issuable to the
participant as a result of the exercise or acquisition of stock under the Stock
Award; or (3) delivering to the Company owned and unencumbered shares of the
common stock of the Company.

13.    ADJUSTMENTS UPON CHANGES IN STOCK.

       (a)    If any change is made in the stock subject to the Plan, or subject
to any Stock Award (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the
receipt of consideration by the Company), the Plan will be appropriately
adjusted in the type(s) and maximum number of securities subject to the Plan
pursuant to subsection 4(a) and the maximum number of securities subject to
award to any person during any calendar year pursuant to subsection 5(c), and
the outstanding Stock Awards will be appropriately adjusted in the type(s) and
number of securities and price per share of stock subject to such outstanding
Stock Awards. Such adjustments shall be made by the Board or the Committee, the
determination of which shall be final, binding and conclusive. (The conversion
of any convertible securities of the Company shall not be treated as a
"transaction not involving the receipt of consideration by the Company.)"

       (b)    In the event of "Change in Control," unless otherwise determined
by the Board or Committee at the time of grant, all outstanding Stock Awards
shall immediately become one hundred percent (100%) vested, and the Board shall
notify all participants that their outstanding Stock Awards shall be fully
exercisable for a period of three (3) months (or such other period of time not
exceeding six (6) months as is determined by the Board at the time of grant)
from the date of such notice, and any unexercised Stock Awards shall terminate
upon the expiration of such period.

       "Change in Control" means the occurrence of any of the following events:

                                       12
<PAGE>

              (1)    a merger or consolidation of the Company or Bancshares with
any other corporation, other than a merger or consolidation which would result
in beneficial owners of the total voting power in the election of directors
represented by the voting securities ("Voting Securities") of the Company or
Bancshares (as the case may be) outstanding immediately prior thereto continuing
to beneficially own securities representing (either by remaining outstanding or
by being converted into voting securities of the surviving entity) at least
fifty percent (50%) of the total Voting Securities of the Company or Bancshares,
or of such surviving entity, outstanding immediately after such merger or
consolidation;

              (2)    the filing of a plan of liquidation or dissolution of the
Company or the closing of the sale, lease, exchange or other transfer or
disposition by the Company or Bancshares of all or substantially all of the
Company's assets;

              (3)    any person (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")),
other than (A) a trustee or other fiduciary holding securities under an employee
benefit plan of the Company or Bancshares, (B) a corporation owned directly or
indirectly by the shareholders of Bancshares in substantially the same
proportions as their beneficial ownership of stock in Bancshares, or (C)
Bancshares (with respect to Bancshares' ownership of the stock of the Company),
is or becomes the beneficial owner (within the meaning of Rule 13d-3 under the
Exchange Act), directly or indirectly, of the securities of the Company or
Bancshares representing 50% or more of the Voting Securities; or

              (4)    any person (as such term is used in Sections 13(d) or 14(d)
of the Exchange Act), other than (a) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or Bancshares, (b) a
corporation owned directly or indirectly by the shareholders of Bancshares in
substantially the same proportions as their ownership of stock in Bancshares, or
(c) Bancshares (with respect to Bancshares' ownership of the stock of the
Company) is or becomes the beneficial owner (within the meaning or Rule 13d-3
under the Exchange Act), directly or indirectly, of the securities of the
Company or Bancshares representing 25% or more of the Voting Securities of such
corporation, and within twelve (12) months of the occurrence of such event, a
change in the composition of the Board of Directors of Bancshares occurs as a
result of which sixty percent (60%) or fewer of the directors are Incumbent
Directors.

       "Incumbent Directors" shall mean directors who either

                     (A)    are directors of the Company as of the date hereof;

                     (B)    are elected, or nominated for election, to the Board
with the affirmative votes of at least a majority of the directors of the
Company who are Incumbent Directors described in (A) above at the time of such
election or nomination; or

                                       13
<PAGE>

                     (C)    are elected, or nominated for election, to the Board
with the affirmative votes of at least a majority of the directors of the
Company who are Incumbent Directors described in (A) or (B) above at the time of
such election or nomination.

       Notwithstanding the foregoing, "Incumbent Directors" shall not include an
individual whose election or nomination to the Board occurs in order to provide
representation for a person or group of related persons who have initiated or
encouraged an actual or threatened proxy contest relating to the election of
directors of the Company.

14.    AMENDMENT OF THE PLAN AND STOCK AWARDS.

       (a)    The Board at any time, and from time to time, may amend the Plan
and/or some or all outstanding Stock Awards granted under the Plan. However,
except as provided in paragraph 13 relating to adjustments upon changes in
stock, no amendment shall be effective unless approved by the shareholders of
the Company to the extent shareholder approval is necessary for the Plan to
satisfy the requirements of Section 422 of the Code, Rule 16b-3 or any Nasdaq or
securities exchange listing requirements.

       (b)    The Board may in its sole discretion submit any other amendment to
the Plan for shareholder approval, including, but not limited to, amendments to
the Plan intended to satisfy the requirements of Section 162(m) of the Code and
the regulations promulgated thereunder regarding the exclusion of
performance-based compensation from the limit on corporate deductibility of
compensation paid to certain executive officers.

       (c)    It is expressly contemplated that the Board may amend the Plan in
any respect the Board deems necessary or advisable to provide eligible Employees
with the maximum benefits provided or to be provided under the provisions of the
Code and the regulations promulgated thereunder relating to Incentive Stock
Options and/or to bring the Plan and/or Incentive Stock Options granted under it
into compliance therewith.

       (d)    Rights and obligations under any Stock Award granted before
amendment of the Plan shall not be impaired by any amendment of the Plan unless
(i) the Company requests the consent of the person to whom the Stock Award was
granted and (ii) such person consents in writing.

       (e)    The Board at any time, and from time to time, may amend the terms
of any one or more Stock Award; provided, however, that the rights and
obligations under any Stock Award shall not be impaired by any such amendment
unless (i) the Company requests the consent of the person to whom the Stock
Award was granted and (ii) such person consents in writing.

15.    TERMINATION OR SUSPENSION OF THE PLAN.

       (a)    The Board may suspend or terminate the Plan at any time. Unless
sooner terminated, the Plan shall terminate on December 18, 2006 which shall be
within ten (10) years from the date the Plan is adopted by the Board or approved
by the shareholders of the Company, whichever is earlier. No Stock Awards may be
granted under the Plan while the Plan is suspended or after it is terminated.

                                       14
<PAGE>

       (b)    Rights and obligations under any Stock Award granted while the
Plan is in effect shall not be impaired by suspension or termination of the
Plan, except with the written consent of the person to whom the Stock Award was
granted.

16.    EFFECTIVE DATE OF PLAN.

       The Plan shall become effective as determined by the Board, but no Stock
Awards granted under the Plan shall be exercised unless and until the Plan has
been approved by the shareholders of the Company, which approval shall be within
twelve (12) months before or after the date the Plan is adopted by the Board,
and, if required, an appropriate permit has been issued by the Commissioner of
Corporations of the State of California.

                                       15<PAGE>
                                                                   Exhibit 10.46

                                CHANGE IN CONTROL
                            SEVERANCE BENEFITS POLICY

       THIS CHANGE IN CONTROL SEVERANCE BENEFITS POLICY (the "POLICY") is
adopted this 18th day of August, 2000 by SILICON VALLEY BANK, a California
corporation (the "COMPANY"), a wholly owned subsidiary of Silicon Valley
Bancshares, a California corporation ("BANCSHARES"). This Policy is intended to
provide Eligible Employees with the compensation and benefits described herein
upon the occurrence of specific events.

       Certain capitalized terms used in this Policy are defined in Article VI.

                                    ARTICLE I

                               ELIGIBLE EMPLOYEES

       1.1    Eligible Employees are all employees of the Company.
Notwithstanding the foregoing, the employees of any other wholly owned
subsidiary of Bancshares or subsidiary of the Company also shall be Eligible
Employees under this Policy if such subsidiary is so designated by the Company
and agrees in writing to be bound by the terms and conditions of this Policy.

       1.2    The rights and obligations of the Eligible Employees and the
Company contained in Articles II through VI shall survive any termination of an
Eligible Employee for twenty-four (24) months following a Change in Control (as
hereinafter defined), or such later period as may be required so that all
benefits to which the Eligible Employee is entitled under this Policy are paid
or otherwise provided to the Eligible Employee.

       1.3    The Company intends to set forth the compensation and benefits
which an Eligible Employee shall be entitled to receive in the event that there
is a Change in Control or the Eligible Employee's employment with the Company
terminates following a Change in Control under the circumstances described in
Article II of this Policy.

       1.4    As a condition of receiving benefits under this Policy, an
Eligible Employee shall be required to execute a general waiver and release in
the form provided by the Company and as further described in Section 3.2.

       1.5    This Policy shall supersede any other policies or agreements
relating to any compensation, benefits, severance or other amounts to be paid to
an Eligible Employee in the event of the Eligible Employee's termination of
employment following the occurrence of a Change in Control, but shall NOT
supersede any agreement between the Eligible Employee and the Company or any
personnel policies of the Company relating to other aspects of the Eligible
Employee's

                                       1
<PAGE>

employment relationship with the Company, including but not limited to the
Company's personnel policies addressing severance payments to the Eligible
Employee in the event of a termination of the Eligible Employee's employment
which is not proximately related to the occurrence of a Change in Control.

                                   ARTICLE II

                               SEVERANCE BENEFITS

       2.1    ENTITLEMENT TO SEVERANCE BENEFITS. If an Eligible Employee's
employment terminates due to an Involuntary Termination or a Constructive
Termination within twenty-four (24) months following a Change in Control, the
termination of employment will be a Covered Termination and the Company shall
pay the Eligible Employee the compensation and benefits described in this
Article II. If the Eligible Employee's employment terminates, but not due to an
Involuntary Termination or a Constructive Termination within twenty-four (24)
months following a Change in Control, or for any reason prior to a Change in
Control or after twenty-four (24) months or more following a Change in Control,
then the termination of employment will NOT be a Covered Termination and
Eligible Employee will NOT be entitled to receive any payments or benefits under
this Article II.

       Payment of any benefits described in this Article II shall be subject to
the restrictions and limitations set forth in Article III.

       2.2    LUMP SUM SEVERANCE PAYMENT AND BENEFITS. An Eligible Employee
entitled to benefits under this Policy shall receive the lump sum severance
payment and other benefits described in Exhibit A of this Policy.

       2.3    TAX-QUALIFIED RETIREMENT PLANS. Upon the occurrence of a Covered
Termination, the Eligible Employee's benefits accrued under any pension, profit
sharing, or stock bonus plan intended to satisfy the requirements of Section
401(a) of the Internal Revenue Code, specifically including, but not limited to,
the Silicon Valley Bank 401(k) and Employee Stock Ownership Plan and the Silicon
Valley Bank Money Purchase Pension Plan, shall become fully vested.

       2.4    WELFARE BENEFITS. Following a Covered Termination, an Eligible
Employee and his or her covered dependents will be eligible to continue their
Welfare Benefit coverage under any Welfare Benefit plan or program maintained by
the Company only to the extent provided under the terms and conditions of such
Welfare Benefit plan or program. Except for the foregoing, no continuation of
Welfare Benefits shall be provided under this Policy except to the extent
continuation of health insurance coverage is required under the Consolidated
Omnibus Budget Reconciliation Act of 1985 ("COBRA").

                                       2
<PAGE>

       This Section 2.4 is not intended to affect, nor does it affect, the
rights of an Eligible Employee, or an Eligible Employee's covered dependents,
under any applicable law with respect to health insurance continuation coverage.

       2.5    OUTPLACEMENT SERVICES. The Company shall provide an Eligible
Employee with outplacement services under the terms and conditions of the
Company's personnel policies in effect immediately prior to the occurrence of a
Change in Control.

       2.6    MITIGATION. Except as otherwise specifically provided herein, an
Eligible Employee shall not be required to mitigate damages or the amount of any
payment provided under this Policy by seeking other employment or otherwise, nor
shall the amount of any payment provided for under this Policy be reduced by any
compensation earned by an Eligible Employee as a result of employment by another
employer or by retirement benefits received after the date of the Covered
Termination, or otherwise.

                                   ARTICLE III

                     LIMITATIONS AND CONDITIONS ON BENEFITS

       3.1    WITHHOLDING OF TAXES. The Company shall withhold appropriate
federal, state or local income and employment taxes from any payments hereunder.

       3.2    EMPLOYEE AGREEMENT AND RELEASE PRIOR TO RECEIPT OF BENEFITS. Upon
the occurrence of a Covered Termination, and prior to the receipt of any
benefits under this Policy on account of the occurrence of a Covered
Termination, Eligible Employee shall, as of the date of a Covered Termination,
execute an employee agreement and release in the form provided by the Company.
In the event an Eligible Employee does not execute such employee agreement and
release within the time period specified in such employee agreement and release
or if the Eligible Employee revokes such employee agreement and release within
the revocation period provided in such employee agreement and release no
benefits shall be payable under this Policy to such Eligible Employee. The
Company reserves the right to include in the employment agreement and release a
representation regarding non-publication of the terms of this Policy.

       3.3    LIMITS IMPOSED BY APPLICABLE BANKING LAW. Notwithstanding any
other provision to the contrary, the Company shall not be obligated under this
Policy to pay any benefit to the extent that such payment would violate any
prohibition or limitation on termination payments under any applicable federal
or state statute, rule or regulation promulgated, or effective order issued, by
any federal or state regulatory agency having jurisdiction over the Company or
Bancshares. Without limiting the foregoing, the Company and Eligible Employee
acknowledge and agree that the Federal Deposit Insurance Corporation (the
"FDIC") has issued a regulation that prohibits payment of the benefit under
certain circumstances, unless such payments were approved by the FDIC, the
Federal Reserve Bank of San Francisco (the "FRB") and the California State
Banking Department (the "SBD").

                                       3
<PAGE>

                                   ARTICLE IV

                            OTHER RIGHTS AND BENEFITS

       4.1    NONEXCLUSIVITY. Nothing in the Policy shall prevent or limit an
Eligible Employee's continuing or future participation in any benefit, bonus,
incentive or other plans, programs, policies or practices provided by the
Company and for which the Eligible Employee may otherwise qualify, nor, except
as specifically provided herein, shall anything herein limit or otherwise affect
such rights as the Eligible Employee may have under any stock option or other
agreements with the Company. Except as otherwise expressly provided herein,
amounts which are vested benefits or which the Eligible Employee is otherwise
entitled to receive under any plan, policy, practice or program of the Company
at or subsequent to the date of a Covered Termination shall be payable in
accordance with such plan, policy, practice or program.

       4.2    PARACHUTE PAYMENTS.

       (a)    In the event that any payment received or to be received by an
Eligible Employee pursuant to this Policy ("Payment") would (i) constitute a
"parachute payment" within the meaning of Section 280G of the Internal Revenue
Code (the "Code") and (ii) but for this subsection (a), be subject to the excise
tax imposed by Section 4999 of the Code (the "Excise Tax"), then, subject to the
provisions of subsection (c) hereof, such Payment shall be reduced, if at all,
to the largest amount which the Eligible Employee, in his or her discretion,
determines would result in maximizing the Eligible Employee's net proceeds with
respect to such Payments (after taking into account the payment of any
appropriate federal, state or local income and employment taxes and the payment
of any Excise Tax imposed on such Payment). The determination by the Eligible
Employee of any required reduction pursuant to this subsection (a) shall be
conclusive and binding upon the Company. The Company shall reduce a Payment in
accordance with this subsection (a) (the "Reduction Amount") only upon written
notice by the Eligible Employee indicating the Reduction Amount, if any. If the
Internal Revenue Service (the "IRS") determines that a Payment is subject to the
Excise Tax, then subsection (c) hereof shall apply, and the enforcement of
subsection (c) shall be the exclusive remedy to the Company for a failure by the
Eligible Employee to reduce the Payment so that no portion thereof is subject to
the Excise Tax.

       (b)    In the event a Payment is reduced in accordance with subsection
(a) hereof, the Eligible Employee may elect to have the Company remit the
Reduction Amount to a 501(c)(C) non-profit charitable organization, within ten
(10) days after a Payment is made to the Eligible Employee. The Eligible
Employee may designate any eligible 501(c)(3) non-profit charitable organization
as the recipient of the Reduction Amount by written submission to the Company,
provided that such designation is received within six (6) months prior to the
date in which Eligible Employee first becomes entitled to a Payment pursuant to
this Policy. Notwithstanding anything

                                       4
<PAGE>

to the foregoing, in no event may the Eligible Employee designate a Charitable
Recipient in which the Eligible Employee has a direct or indirect beneficial
ownership interest.

       (c)    If, notwithstanding any reduction described in subsection (a)
hereof (or in the absence of any such reduction), the IRS determines that the
Eligible Employee is liable for the Excise Tax as a result of the receipt of one
or more Payments, then the Eligible Employee shall be obligated to pay back to
the Company, within 30 days after final IRS determination, an amount of such
Payments equal to the "Repayment Amount." The Repayment Amount with respect to
such Payments shall be the smallest such amount, if any, as shall be required to
be paid to the Company so that the Eligible Employee's net proceeds with respect
to such Payments (after taking into account the payment of the Excise Tax
imposed on such Payments) shall be maximized. Notwithstanding the foregoing, the
Repayment Amount with respect to such Payments shall be zero if a Repayment
Amount of more than zero would not eliminate the Excise Tax imposed on such
Payments. If the Excise Tax is not eliminated pursuant to this subsection (b),
the Eligible Employee shall pay the Excise Tax.

                                    ARTICLE V

                           NON-ALIENATION OF BENEFITS

       No benefit hereunder shall be subject to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance or charge, and any attempt to so
subject a benefit hereunder shall be void.

                                   ARTICLE VI

                                   DEFINITIONS

       For purposes of the Policy, the following terms shall have the meanings
set forth below:

       6.1    "BASE SALARY" means the base salary rate in effect for the subject
Eligible Employee at the time of a Covered Termination, exclusive of any bonus
or other incentive cash compensation, income from any stock options or other
stock awards, supplemental deferred compensation contributions made by the
Company, pension or profit sharing contributions or distributions (except as
provided below), insurance payments or proceeds, fringe benefits, or other form
of additional compensation, but specifically including any amounts withheld from
base salary to provide benefits pursuant to section 125, 401(k), or 402(g) of
the Internal Revenue Code or pursuant to any other plan or program of deferred
compensation.

       6.2    "CHANGE IN CONTROL" means the consummation of any of the following
transactions:

              (a)    a merger or consolidation of the Company or Bancshares with
any other corporation, other than a merger or consolidation which would result
in beneficial owners of the

                                       5
<PAGE>

total voting power in the election of directors represented by the voting
securities ("Voting Securities") of the Company or Bancshares (as the case may
be) outstanding immediately prior thereto continuing to beneficially own
securities representing (either by remaining outstanding or by being converted
into voting securities of the surviving entity) at least fifty percent (50%) of
the total Voting Securities of the Company or Bancshares, or of such surviving
entity, outstanding immediately after such merger or consolidation;

              (b)    the filing of a plan of liquidation or dissolution of the
Company or the closing of the sale, lease, exchange or other transfer or
disposition by the Company or Bancshares of all or substantially all of the
Company's assets;

              (c)    any person (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")),
other than (A) a trustee or other fiduciary holding securities under an employee
benefit plan of the Company or Bancshares, (B) a corporation owned directly or
indirectly by the shareholders of Bancshares in substantially the same
proportions as their beneficial ownership of stock in Bancshares, or (C)
Bancshares (with respect to Bancshares' ownership of the stock of the Company),
is or becomes the beneficial owner (within the meaning of Rule 13d-3 under the
Exchange Act), directly or indirectly, of the securities of the Company or
Bancshares representing 50% or more of the Voting Securities; or

              (d)    any person (as such term is used in Sections 13(d) or 14(d)
of the Exchange Act), other than (a) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or Bancshares, (b) a
corporation owned directly or indirectly by the shareholders of Bancshares in
substantially the same proportions as their ownership of stock in Bancshares, or
(c) Bancshares (with respect to Bancshares' ownership of the stock of the
Company) is or becomes the beneficial owner (within the meaning or Rule 13d-3
under the Exchange Act), directly or indirectly, of the securities of the
Company or Bancshares representing 25% or more of the Voting Securities of such
corporation, and within twelve (12) months of the occurrence of such event, a
change in the composition of the Board of Directors of Bancshares occurs as a
result of which sixty percent (60%) or fewer of the directors are Incumbent
Directors.

       "INCUMBENT DIRECTORS" shall mean directors who either:

                     (A)    are directors of Bancshares as of the date hereof;

                     (B)    are elected, or nominated for election, to the Board
of Directors of Bancshares with the affirmative votes of at least a majority of
the directors of Bancshares who are Incumbent Directors described in (A) above
at the time of such election or nomination; or

                     (C)    are elected, or nominated for election, to the Board
of Directors of Bancshares with the affirmative votes of at least a majority of
the directors of Bancshares who are Incumbent Directors described in (A) or (B)
above at the time of such election or nomination.

                                       6
<PAGE>

       Notwithstanding the foregoing, "Incumbent Directors" shall not include an
individual whose election or nomination to the Board of Directors of Bancshares
occurs in order to provide representation for a person or group of related
persons who have initiated or encouraged an actual or threatened proxy contest
relating to the election of directors of Bancshares.

       6.3    "COMPANY" means Silicon Valley Bank, a California corporation, and
any successor thereto.

       6.4    "CONSTRUCTIVE TERMINATION" means that an Eligible Employee
voluntarily terminates his or her employment after any of the following are
undertaken without the Eligible Employee's express written consent:

              (a)    the material, involuntary reduction in the Eligible
Employee's responsibilities, authorities or functions as an employee of the
Company and/or affiliate thereof as in effect immediately prior to a Change in
Control, except in connection with the termination of the Eligible Employee's
employment for death, disability, retirement, fraud, misappropriation,
embezzlement or any listed exclusion from the definition of Involuntary
Termination;

              (b)    a reduction in the Eligible Employee's Base Salary;

              (c)    a reduction in the Eligible Employee's Total Compensation
to less than 85% of the amount provided to the Eligible Employee for the last
full calendar year immediately preceding the occurrence of a Change in Control;
or

              (d)    a relocation of the Eligible Employee to a location more
than fifty (50) miles from the location at which the Eligible Employee performed
the Eligible Employee's duties prior to a Change in Control, except for required
travel by the Eligible Employee on the Company's business to an extent
substantially consistent with the Eligible Employee's business travel
obligations at the time of a Change in Control.

       6.5    "COVERED TERMINATION" means an Involuntary Termination or a
Constructive Termination within twenty-four (24) months following a Change in
Control. No other event shall be a Covered Termination for purposes of this
Policy.

       6.6    "ELIGIBLE EMPLOYEE" means each employee of the Company (or
affiliate thereof) who meets the requirements of Section 1.1.

       6.7    "INVOLUNTARY TERMINATION" means an Eligible Employee's dismissal
or discharge by the Company (or, if applicable, by the successor entity) for
reasons other than for one of the following reasons:

                                       7
<PAGE>

              (a)    the commission by the Eligible Employee of an act of
deliberately criminal or fraudulent misconduct in the line of duty to the
Company or Bancshares (including, but not limited to, the willful violation of
any material law, rule, regulation, or cease and desist order applicable to the
Eligible Employee, the Company or Bancshares), a deliberate act that constitutes
a conflict of interest with the Company, Bancshares, or Bancshares'
shareholders, or a deliberate breach of a fiduciary duty owed by the Eligible
Employee to the Company, Bancshares, or Bancshares' shareholders;

              (b)    the Eligible Employee's habitual absence from work,
intentional failure to perform stated duties, gross negligence, or gross
incompetence in the performance of stated duties;

              (c)    the Eligible Employee's chronic alcohol or drug abuse that
results in a material impairment of the Eligible Employee's ability to perform
his or her duties as an employee of the Company after reasonable accommodation;

              (d)    the rendering of a verdict of guilty against the Eligible
Employee for any criminal offense (other than a law relating to a traffic
violation or similar offense), whether or not in the line of duty; or

              (e)    the Eligible Employee's removal from his or her office with
the Company or Bancshares pursuant to an effective order under Section 8(e) of
the Federal Deposit Insurance Act 12 U.S.C. Section 1818(e).

       The termination of an Eligible Employee's employment will not be deemed
to be an "Involuntary Termination" if such termination occurs as a result of the
death or disability of the Eligible Employee.

       6.8    "POLICY" means this Change in Control Severance Benefits Policy.

       6.9    "TOTAL COMPENSATION" means the amount of compensation paid by the
Company to an Eligible Employee with respect to the calendar year immediately
preceding the occurrence of a Change in Control. Such amount shall include the
following amounts paid with respect to such calendar year: the Eligible
Employee's Base Salary, any annual incentive compensation (excluding any "VC
Participant Amount" under, and as defined in, the Company's Retention Programs),
and any amounts withheld from the Eligible Employee's base salary or bonus to
provide benefits pursuant to section 125, 401(k), or 402(g) of the Internal
Revenue Code or pursuant to any other plan or program of deferred compensation.
Such amount shall exclude any bonus declared or paid from the warrant incentive
plan of the Company, overtime pay, any income from any stock options or other
stock awards, supplemental deferred compensation contributions made by the
Company, pension or profit sharing contributions or distributions (except
included above), insurance payments or proceeds, fringe benefits, and other
forms of additional compensation. Notwithstanding the foregoing, any annual
incentive compensation declared for the calendar year immediately preceding

                                       8
<PAGE>

the occurrence of a Change in Control shall relate to the Eligible Employee's
performance in the preceding calendar year.

       6.10   "WELFARE BENEFITS" means benefits providing for coverage or
payment in the event of an Eligible Employee's death, disability, illness or
injury that were provided to the Eligible Employee immediately before a Change
in Control, whether taxable or non-taxable and whether funded through insurance
or otherwise.

                                   ARTICLE VII

                               GENERAL PROVISIONS

       7.1    EMPLOYMENT STATUS. This Policy does not constitute a contract of
employment or impose on an Eligible Employee any obligation to remain as an
employee, or impose on the Company any obligation (i) to retain an Eligible
Employee as an employee, (ii) to change the status of an Eligible Employee as an
at-will employee, or (iii) to change the Company's policies regarding
termination of employment.

       7.2    NOTICES. Any notices provided hereunder must be in writing and
such notices or any other written communication shall be deemed effective upon
the earlier of personal delivery (including personal delivery by telex or
facsimile) or the third day after mailing by first class mail, to the Company at
its primary office location and to the Eligible Employee at his or her address
as listed in the Company's payroll records. Any payments made by the Company to
an Eligible Employee under the terms of this Policy shall be delivered to the
Eligible Employee either in person or at his or her address as listed in the
Company's payroll records.

       7.3    SEVERABILITY. Whenever possible, each provision of this Policy
will be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Policy is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Policy will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provisions had never been contained herein.

       7.4    WAIVER. If either the Company or an Eligible Employee should waive
any breach of any provisions of this Policy, such party shall not thereby be
deemed to have waived any preceding or succeeding beach of the same or any other
provision of this Policy.

       7.5    COMPLETE AGREEMENT. This Policy, including Exhibits A and B and
any other written agreements specifically referred to in this Policy,
constitutes the entire agreement between an Eligible Employee and the Company,
and it is the complete, final, and exclusive embodiment of their agreement with
regard to this subject matter. No promise or representation other than those
expressly contained herein shall alter the terms of this Policy.

                                       9
<PAGE>

       7.6    BASIS OF PAYMENTS. All benefits under the Policy shall be paid by
the Company. The Policy shall be unfunded, and benefits hereunder shall be paid
only from the general assets of the Company.

       7.7    AMENDMENT OR TERMINATION OF POLICY. This Policy may be changed or
terminated only by the Company. A change or termination of this Policy must be
signed by an executive officer of the Company after such change or termination
has been approved by an authorized committee of the Company's Board of
Directors. NOTWITHSTANDING THE FOREGOING, no amendment or termination shall
affect the right to any unpaid benefit of any Eligible Employee whose employment
with the Company terminated prior to the amendment or termination of the Policy;
and FURTHER PROVIDED, that for the period of twenty-four (24) months following a
Change in Control, the Policy shall not be amended and no Eligible Employee
shall be reclassified in any manner that would adversely affect the interests of
the Eligible Employee without the written consent of the Eligible Employee so
affected.

       7.8    HEADINGS. The headings of the Articles and Sections hereof are
inserted for convenience only and shall not be deemed to constitute a part
hereof nor to affect the meaning thereof.

       7.9    SUCCESSORS AND ASSIGNS. This Policy is intended to bind and inure
to the benefit of and be enforceable by an Eligible Employee and the Company,
and their respective successors, assigns, heirs, executors and administrators,
except that an Eligible Employee may not assign any of his or her duties
hereunder and he may not assign any of his or her rights hereunder without the
written consent of the Company, which consent shall not be withheld
unreasonably.

       8.0    ARBITRATION. Any and all disputes or controversies, arising from
or regarding the interpretation, performance, enforcement or termination of this
Policy shall be resolved by final and binding arbitration under the procedures
set forth in the Arbitration Procedure attached hereto as Exhibit B and the then
existing Judicial Arbitration and Mediation Services, Inc. ("JAMS") Rules of
Practice and Procedure or the rules of practice and procedure of any successor
entity to JAMS (except insofar as they are inconsistent with the procedures set
forth in the enclosed Arbitration Procedure). Nothing in this section is
intended to prevent either the Company or an Eligible Employee from obtaining
either injunctive relief in court to prevent irreparable harm pending the
conclusion of any such arbitration or in lieu of arbitration or from utilizing
any judicial court system to seek enforcement of an arbitration award.

       8.1    ATTORNEY FEES. In the event of any arbitration or any other action
or proceeding relating to the interpretation, performance, enforcement or
termination of this Policy, the prevailing party shall be entitled to an award
requiring payment by the other party of such prevailing party's reasonable fees
and costs, including reasonable attorneys' fees incurred as a result of such
action or proceeding.

                                       10
<PAGE>

       8.2    TRANSFER OF SERVICES TO AFFILIATE. This Policy shall not prohibit
the Company from transferring an Eligible Employee's services to an affiliate of
the Company, provided that the rights and obligations of the parties hereto
shall not terminate in the event of such transfer, and provided further that the
new entity for which the Eligible Employee is performing services also shall be
bound hereby without the need for further written agreement and without release
of the Company.

       8.3    NO VIOLATION OF GOVERNING BANKING LAW. Nothing in this Policy is
intended to require or shall be construed as requiring the Company to do or fail
to do any act in violation of applicable law, rule, regulation or order. The
Company's inability, pursuant to court or regulatory order, to perform its
obligations under this Policy or the modification of this Policy by the FRB, the
SBD or other bank regulatory agency through administrative action shall not
constitute a breach of this Policy. Except to the extent provided in Section
3.3, the provisions of this Policy shall be severable. If this Policy or any
portion hereof shall be invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless perform its obligations
hereunder to the full extent permitted by any applicable portion of this Policy
that shall not have been invalidated, and the balance of this Policy not so
invalidated shall be enforceable in accordance with its terms.

       8.4    CONSTRUCTION OF POLICY. In the event of a conflict between the
text of the Policy and any Summary Plan Description, summary, description or
other information regarding the Policy, the text of the Policy shall control.
This Policy is intended to governed by and shall be construed in accordance with
the Employee Retirement Income Security Act of 1974 ("ERISA") and, to the extent
not preempted by ERISA, the laws of the State of California.

       IN WITNESS WHEREOF, to record the adoption of this Policy as set forth
herein, effective as of the day and year written above, Silicon Valley Bank has
caused its duly authorized officer to execute the same this ______ day of
___________, 2000.

                                        SILICON VALLEY BANK,
                                        a California corporation

                                        By:___________________________________

                                        Name:_________________________________

                                        Title:________________________________

Exhibit A:  CIC Benefit Table
Exhibit B:  Arbitration Procedure

                                       11

<PAGE>

                                    EXHIBIT A

                              SCHEDULE OF BENEFITS
                 ELIGIBLE EMPLOYEES AT GRADE LEVELS 14 AND ABOVE

       LUMP SUM SEVERANCE PAYMENT. Within thirty (30) days following a Covered
Termination, or such longer period as is administratively reasonable following
the close of the maximum period provided by law for consideration and revocation
of the employee agreement and release described in Section 3.2, the Eligible
Employee shall receive a lump sum payment determined by the Eligible Employee's
Base Salary multiplied by the appropriate factor applied from the table attached
as Exhibit A (which factor shall be based upon (1) the Eligible Employee's level
within the Company and (2) the relationship between the Selling Price of the
Company or Bancshares (as the case may be) at the time of the transaction (or
series of related transactions) causing the occurrence of a Change in Control
and the Book Value of the Company or Bancshares (as the case may be) at that
time). This lump sum payment shall be called the Eligible Employee's "CIC
Benefit."

              If the Eligible Employee's Covered Termination occurs on or before
the expiration of twelve (12) months from the occurrence of a Change in Control,
the Eligible Employee shall be entitled to receive 100% of his or her CIC
Benefit. If the Eligible Employee's Covered Termination occurs after the
expiration of twelve (12) months from the occurrence of a Change in Control, the
Eligible Employee shall be entitled to receive a CIC Benefit based upon the
following table:

<TABLE>
<CAPTION>
         NUMBER OF MONTHS
         FOLLOWING CHANGE IN CONTROL            PERCENTAGE OF CIC BENEFIT
         <S>                                   <C>
                    15                                    75%
                    18                                    50%
                    21                                    25%
                    24                                     0%
</TABLE>

              In the event that an Eligible Employee's Covered Termination
occurs on a date between two of these quarterly benchmarks, then the percentage
of the CIC Benefit to which Eligible Employee shall be entitled shall be equal
to the sum of two percentages (rounded to the nearest whole percentage): (1) the
Percentage of CIC Benefit for the quarterly benchmark next following the
occurrence of the Covered Termination, and (2) twenty five percent (25%)
multiplied by a fraction, the numerator of which is the number of days after the
date of Covered Termination and on or before the date on which the subsequent
quarterly benchmark falls, and the denominator of which is ninety one (91). For
example, if the date on which a Change of Control occurs is September 1, 1998
and the Eligible Employee incurs a Covered Termination on November 15, 1999,
then the Percentage of CIC Benefit to which Eligible Employee is entitled

                                       1.
<PAGE>

shall be 79% (75% + (16/91 X 25%)) or (75% + 4.4%) or 79.4%, as rounded to the
nearest whole percentage. Eligible Employee's CIC Benefit may be further reduced
as a result of the limits on payment of aggregate CIC Benefits described in
Exhibit A to this Agreement.

       STOCK OPTIONS AND STOCK. All stock options held by the Eligible with
respect to Bancshares stock that are unvested at the time of a Change in Control
shall become fully vested and exercisable upon a Change in Control (regardless
of whether a Covered Termination occurs). All Bancshares stock held by the
Eligible Employee that is unvested at the time of a Change in Control may become
fully vested upon a Change in Control, subject to the terms of the agreements
providing for the grant of such Bancshares stock. The Company shall take all
actions necessary to amend all stock option agreements evidencing outstanding
stock options granted to an Eligible Employee to provide for full vesting of
stock options upon a Change in Control or to otherwise conform such stock
agreements, as necessary, to the terms of this Policy.

*** For purposes of the attached table, the following definitions shall apply:

       II     "Book Value" shall mean the amount of the stockholders' equity, as
determined in accordance with generally accepted accounting principles, as of
the date immediately preceding a Change in Control, excluding the Company's
allowance for loan losses.

       III    "Selling Price" shall mean the valuation of the Company or
Bancshares (as the case may be) as determined by the Company or Bancshares,
respectively, in good faith at the time of the occurrence of the transaction (or
series of related transactions) as a result of which a Change in Control occurs.

       Furthermore, notwithstanding any provision in this Exhibit A and any
personnel policy of the Company to the contrary, the cumulative CIC Benefit paid
to all employees of the Company shall not exceed 5.8% of the difference between
the Selling Price and the Book Value assuming one-third (1/3rd) of the Company's
employees at the time of a Change in Control incur a Covered Termination, shall
not exceed 11.7% of the difference between the Selling Price and the Book Value
assuming two-thirds (2/3rds) of the Company's employees at the time of a Change
in Control incur a Covered Termination, and in no event shall exceed 17.5% of
the difference between the Selling Price and the Book Value. For purposes of the
potential reduction in CIC Benefits provided for in this paragraph, the
determination shall be made at the time of the Change in Control and the
determination of whether the cumulative CIC Benefit to be paid exceeds the
relevant limits specified herein also shall be determined at the time of the
Change in Control. If, at the time of the Change in Control, it is determined
that the limits specified in this paragraph are exceeded, then the potential CIC
Benefits of all employees of the Company incurring a Covered Termination shall
be proportionately decreased such that the resulting potential aggregate payouts
will not exceed the relevant limit.

                                       2.
<PAGE>

                         CIC BENEFIT TABLE

MULTIPLE OF BASE SALARY

<TABLE>
<CAPTION>
----------------------- ----------- --------------------- ------------------ ---------- ------------------
       MULTIPLE OF                       EXECUTIVE            MANAGING                         ALL
       BOOK VALUE          OTC           COMMITTEE            COMMITTEE         MRT          OTHERS*
----------------------- ----------- --------------------- ------------------ ---------- ------------------
<S>                    <C>              <C>                  <C>            <C>            <C>
          1               0.000            0.000                0.000          0.000          0.150
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         1.1              0.000            0.000                0.000          0.000          0.150
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         1.2              0.000            0.000                0.000          0.000          0.150
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         1.3              0.000            0.000                0.000          0.000          0.150
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         1.4              0.000            0.000                0.000          0.000          0.150
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         1.5              0.000            0.000                0.000          0.000          0.150
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         1.6              0.000            0.000                0.000          0.000          0.150
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         1.7              0.000            0.000                0.000          0.000          0.150
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         1.8              0.000            0.000                0.000          0.000          0.150
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         1.9              0.000            0.000                0.000          0.000          0.150
----------------------- ----------- --------------------- ------------------ ---------- ------------------
          2               1.300            1.000                0.800          0.400          0.170
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         2.1              1.400            1.100                0.900          0.500          0.180
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         2.2              1.500            1.200                1.000          0.500          0.200
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         2.3              1.600            1.300                1.100          0.500          0.220
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         2.4              1.700            1.400                1.200          0.600          0.230
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         2.5              1.800            1.500                1.250          0.600          0.250
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         2.6              1.900            1.600                1.300          0.700          0.270
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         2.7              2.000            1.700                1.400          0.700          0.280
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         2.8              2.100            1.800                1.500          0.700          0.300
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         2.9              2.200            1.900                1.600          0.800          0.320
----------------------- ----------- --------------------- ------------------ ---------- ------------------
          3               2.300            2.000                1.700          0.800          0.330
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         3.1              2.400            2.100                1.800          0.900          0.350
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         3.2              2.600            2.200                1.850          0.900          0.370
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         3.3              2.700            2.300                1.900          1.000          0.380
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         3.4              2.800            2.400                2.000          1.000          0.400
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         3.5              2.900            2.500                2.100          1.000          0.420
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         3.6              3.000            2.600                2.150          1.100          0.430
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         3.7              3.100            2.700                2.200          1.100          0.450
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         3.8              3.200            2.800                2.300          1.200          0.470
----------------------- ----------- --------------------- ------------------ ---------- ------------------
         3.9              3.400            2.900                2.400          1.200          0.480
----------------------- ----------- --------------------- ------------------ ---------- ------------------
          4               3.500            3.000                2.500          1.250          0.500
----------------------- ----------- --------------------- ------------------ ---------- ------------------

----------------------- ----------- --------------------- ------------------ ---------- ------------------

----------------------- ----------- --------------------- ------------------ ---------- ------------------

----------------------- ----------- --------------------- ------------------ ---------- ------------------

----------------------- ----------- --------------------- ------------------ ---------- ------------------

----------------------- ----------- --------------------- ------------------ ---------- ------------------
</TABLE>

*--COVERING ALL OTHER EMPLOYEES AT GRADE 14 AND ABOVE (SEE THE SEPARATE CIC PLAN
FOR EMPLOYEES AT GRADES 11-13)

<PAGE>

                                    EXHIBIT A

                              SCHEDULE OF BENEFITS
                 ELIGIBLE EMPLOYEES AT GRADE LEVELS 13 AND BELOW

       Subject to the limitations specified below, within sixty (30) days
following a Covered Termination, or such longer period as is administratively
reasonable following the close of the maximum period provided by law for
consideration and revocation of the employee agreement and release described in
Section 3.2, an Eligible Employee classified at Grade Levels 13 and below as of
the date of the Covered Termination shall receive a lump sum payment in an
amount equal to one week of Base Salary for each full year of service with the
Company, but not to exceed a maximum of fifteen (15) weeks of Base Salary. This
lump sum payment shall be called the Eligible Employee's CIC Benefit.
NOTWITHSTANDING THE FOREGOING, Eligible Employees will receive a minimum of four
(4) weeks of Base Salary as the Eligible Employee's CIC Benefit.

       For purposes of determining CIC Benefits for an Eligible Employee
classified at Grade Levels 13 and below, such Eligible Employee's Base Salary
shall be divided by 52 in order to determine the amount of one week of Base
Salary.

       However, notwithstanding any provision in this Exhibit A and any
personnel policy of the Company to the contrary, the cumulative CIC Benefit paid
to all employees of the Company shall not exceed 5.8% of the difference between
the Selling Price and the Book Value assuming one-third (1/3rd) of the Company's
employees at the time of a Change in Control incur a Covered Termination, shall
not exceed 11.7% of the difference between the Selling Price and the Book Value
assuming two-thirds (2/3rds) of the Company's employees at the time of a Change
in Control incur a Covered Termination, and in no event shall exceed 17.5% of
the difference between the Selling Price and the Book Value. For purposes of the
potential reduction in CIC Benefits provided for in this paragraph, the
determination shall be made at the time of the Change in Control and the
determination of whether the cumulative CIC Benefit to be paid exceeds the
relevant limits specified herein also shall be determined at the time of the
Change in Control. If, at the time of the Change in Control, it is determined
that the limits specified in this paragraph are exceeded, then the potential CIC
Benefits of all employees of the Company incurring a Covered Termination shall
be proportionately decreased such that the resulting potential aggregate payouts
will not exceed the relevant limit.

*** For purposes of this Exhibit A, the following definitions shall apply:

       IV     "Book Value" shall mean the amount of the stockholders' equity, as
determined in accordance with generally accepted accounting principles, as of
the date immediately preceding a Change in Control, excluding the Company's
allowance for loan losses.

                                       1.
<PAGE>

       V      "Selling Price" shall mean the valuation of the Company or
Bancshares (as the case may be) as determined by the Company or Bancshares,
respectively, in good faith at the time of the occurrence of the transaction (or
series of related transactions) as a result of which a Change in Control occurs.

                                       2.
<PAGE>

                                    EXHIBIT B

                              ARBITRATION PROCEDURE

       VI     The parties agree that any dispute that arises in connection with
the payment of benefits under this Policy or the termination of this Policy
shall be resolved by binding arbitration in the manner described below.

       VII    A party intending to seek resolution of any dispute under the
Policy by arbitration shall provide a written demand for arbitration to the
other party, which demand shall contain a brief statement of the issues to be
resolved.

       VIII   The arbitration shall be conducted in Santa Clara County,
California, by a mutually acceptable retired judge from the panel of Judicial
Arbitration and Mediation Services, Inc. or any entity performing the same type
of services that succeeds to its business ("JAMS"). At the request of either
party, arbitration proceedings will be conducted in the utmost secrecy and, in
such case, all documents, testimony and records shall be received, heard and
maintained by the arbitrator in secrecy under seal, available for inspection
only by the parties to the arbitration, their respective attorneys, and their
respective expert consultants or witnesses who shall agree, in advance and in
writing, to receive all such information confidentially and to maintain such
information in secrecy, and make no use of such information except for the
purposes of the arbitration, unless compelled by legal process.

       IX     The arbitrator is required to disclose any circumstances that
might preclude the arbitrator from rendering an objective and impartial
determination. In the event the parties cannot mutually agree upon the selection
of a JAMS arbitrator, the President of JAMS shall designate the arbitrator.

       X      The party demanding arbitration shall promptly request that JAMS
conduct a scheduling conference within fifteen (15) days of the date of that
party's written demand for arbitration or on the first available date thereafter
on the arbitrator's calendar. The arbitration hearing shall be held within
thirty (30) days after the scheduling conference or on the first available date
thereafter on the arbitrator's calendar. Nothing in this paragraph shall prevent
a party from at any time seeking temporary equitable relief, from JAMS or any
court of competent jurisdiction, to prevent irreparable harm pending the
resolution of the arbitration.

       XI     Discovery shall be conducted as follows: (a) prior to the
arbitration any party may make a written demand for lists of the witnesses to be
called and the documents to be introduced at the hearing; (b) the lists must be
served within fifteen days of the date of receipt of the demand, or one day
prior to the arbitration, whichever is earlier; and (c) each party may take no
more than two depositions (pursuant to the procedures set forth in the
California Code of Civil Procedure) with a

                                       1.
<PAGE>

maximum of five hours of examination time per deposition, and no other form of
pre-arbitration discovery shall be permitted.

       XII    It is the intent of the parties that the Federal Arbitration Act
("FAA") shall apply to the enforcement of this provision unless it is held
inapplicable by a court with jurisdiction over the dispute, in which event the
California Arbitration Act ("CAA") shall apply.

       XIII   The arbitrator shall apply California law, including the
California Evidence Code, and shall be able to decree any and all relief of an
equitable nature, including but not limited to such relief as a temporary
restraining order, a preliminary injunction, a permanent injunction, or replevin
of Company property. The arbitrator shall also be able to award actual, general
or consequential damages, but shall not award any other form of damage (e.g.,
punitive damages).

                                       2.
<PAGE>

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