Document:

Exhibit 10.4

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the “Agreement”)
is entered into as of February 8, 2007, by and between HERITAGE BANK OF
COMMERCE, a California banking corporation (the “Bank”)
and JAMES MAYER, an individual (the “Executive”).

RECITALS

WHEREAS, the Bank, Heritage Commerce Corp (“HCC”) and
Diablo Valley Bank (“Diablo”) have entered into an Agreement and Plan of
Reorganization, dated February 8, 2007 (“Plan of Reorganization”) for the
merger of Diablo with and into the Bank (the “Merger”).

WHEREAS, the Board of Directors of the Bank has
approved and authorized the entry into this Agreement with the Executive; and

WHEREAS, this Agreement shall to become effective as
of the Effective Time as defined in the Plan of Reorganization (herein, the “Effective
Date”).

WHEREAS, the parties desire to enter into this
Agreement to set forth the terms and conditions for the employment relationship
of the Executive with the Bank.

AGREEMENT

NOW, THEREFORE, in consideration of the promises and
mutual covenants and agreements herein contained and intending to be legally
bound hereby, the Bank and the Executive hereby agree as follows:

1.             Employment.

1.1           Title.  The Executive is employed as Executive Vice
President of the Bank.  In this capacity,
the Executive shall have such duties and responsibilities as may be designated
to him by the President of the Bank and in accordance with the objectives or
policies of the Board of Directors, from time to time, in connection with the
business activities of the Bank.

1.2           Full-Time Employment.  During the Term (as defined in Section 2),
and excluding any period of vacation and sick leave to which the Executive is
entitled, the Executive agrees to devote his full attention and time during
normal business hours to the business and affairs of the Bank in a manner and
with such results as are consistent with his position and compensation and to
use the Executive’s best efforts to perform such responsibilities.  During the Term it shall not be a violation
of this Agreement for the Executive to (A) serve on corporate, civic or
charitable boards or committees, (B) deliver lectures, fulfill speaking
engagements or teach at educational institutions and (C) manage personal
investments, so long as such activities do not significantly interfere with the
performance of the Executive’s responsibilities as an employee of the Bank in
accordance with this Agreement.

1.3           Standard.  The Executive will set a high standard of
professional conduct given his role with the Bank and his responsibility
relative to the Bank’s presence and stature in the 

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community.  The
Executive will, at all times, emulate this high professional standard of
conduct in order to develop and enhance the Bank’s reputation and image.  The Executive will comply with all applicable
rules, policies and procedures of the Bank and any of its subsidiaries and all
pertinent regulatory standards as may affect the Bank.

1.4           Location.  The Executive shall provide services for the
Bank at its office located in Danville, California.  The Executive agrees that the Executive will
be regularly present at the Bank’s Danville office and that the Executive may
be required to travel from time to time in the course of performing the
Executive’s duties for the Bank.

1.5           No Breach of Contract.   The Executive hereby represents to the Bank
that:  (i) the execution and
delivery of this Agreement by the Executive and the performance by the
Executive of the Executive’s duties hereunder shall not constitute a breach of,
or otherwise contravene, the terms of any other agreement or policy to which
the Executive is a party or by which he is otherwise bound; (ii) that the
Executive has no information (including, without limitation, confidential
information or trade secrets) of any other person or entity which the Executive
is not legally and contractually free to disclose the Bank; and (iii) that
the Executive is not bound by any confidentiality, trade secret or similar
agreement (other than this Agreement) with any other person or entity.

2.             Term.  The Bank hereby agrees to employ as of the
Effective Date and continue in its employ the Executive, and the Executive
hereby accepts such employment and agrees to remain in the employ of the Bank,
for the period commencing on the Effective Date and extending for three (3) years
or until this Agreement is terminated in accordance with the provisions of
Section 6 below.

3.             Compensation.

3.1           Salary.  Subject to the further provisions of this
Agreement, the Bank shall pay the Executive a salary at an annual rate equal to
$220,000 for the first twelve months, $240,000 for the next twelve months, and
$250,000 for the following twelve months, which will be paid in accordance with
the Bank’s normal payroll procedures. 
Participation in deferred compensation, discretionary or performance
bonus, retirement, stock option and other employee benefit plans and in fringe
benefits shall not reduce the annual rate.

3.2           Bonus.  The Executive shall be eligible, for each
calendar year ending during the Term of this Agreement (prorated for partial
years), an annual bonus (the “Annual Bonus”)
under the Heritage Bank of Commerce Proxy Officer Bonus Plan or comparable
alternate plan, subject to the terms, conditions and limitations of the
Incentive Plan.

3.3           Participation in
Employee Benefit Plans.  During the
Term of this Agreement, the Executive and/or the Executive’s family, as the
case may be, shall be eligible to participate in all benefits (pension, thrift,
profit sharing, life insurance, medical coverage, disability, medical, dental
and vision, or other retirement or employee benefits) under employee benefit
plans, practices, policies and programs provided by the Bank.

(a)           401(k).  HCC maintains a 401(k) plan for its eligible
employees.  Subject to the terms and
conditions set forth in the official plan documents, the Executive will be
eligible 

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to enroll in the 401(k) plan, and shall receive a
matching contribution in accordance with the terms of the 401(k) plan from HCC.

(b)           Employee Stock
Ownership Plan.  The Executive shall have
the option to participate in the HCC’s Employee Stock Ownership Plan on the
same basis as other executives in comparable positions with the Bank.

(c)           Other.  The Executive’s eligibility and all other
terms and conditions of the Executive’s participation in the Bank’s benefit,
insurance and disability plans and programs will be governed by the official
plan documents which may change from year-to-year.

3.4           2004 Stock Option
Plan.  Executive shall be entitled to
20,000 stock options pursuant to the terms of the HCC’s 2004 Stock Option Plan
(the “2004 Plan”), subject to the approval of the Compensation Committee and
the Board of Directors of HCC.  The
exercise price will be the Fair Market Value for the HCC’s Common Stock on the
date of grant as defined in the 2004 Plan. 
The Executive’s options will
vest in daily increments of 1/1460th from the date of grant until fully vested
and shall expire ten years from the date of grant.  All such options shall be subject to the
terms and conditions of the 2004 Plan and shall be conditioned upon the
Executive’s execution of an option agreement with HCC in a form specified by
HCC.  Any future grants of stock options
shall be at the sole discretion of the Compensation Committee and the Board of
Directors.

3.5           Business Expenses.  During the Term of this Agreement, the
Executive shall be entitled to incur and be reimbursed for all reasonable
business expenses.  The Bank agrees that
it will reimburse the Executive for all such expenses upon the presentation by
the Executive, from time to time, of an itemized account of such expenditures
setting forth the date, the purposes for which incurred, and the amounts
thereof, together with such receipts showing payments in conformity with the
Bank’s established policies.  Reimbursement
shall be made within a reasonable period after the Executive’s submission of an
itemized account in accordance with the Bank’s policies.  In addition, the Bank agrees to pay for
monthly membership dues on behalf of Executive to the Contra Costa Country Club
and the Olympic Club during the Term of this Agreement.

3.6           Fringe Benefits.  During the Term of this Agreement, the
Executive shall be entitled to receive the following fringe benefits:

(a)           the Bank shall provide
to Employee, for business use, an automobile suitable to his position.  The Executive may select the type of vehicle,
subject to the approval of the Bank, but the obligation of the Bank shall not
exceed a lease payment of $750 per month, exclusive of taxes, pre-lease
deposits and fees.  The Bank shall pay
for all fuel, maintain the vehicle in good condition and repair and endeavor to
obtain and maintain automobile insurance covering the Executive and the Bank in
amounts consistent with Bank policy as in effect from time to time;

(b)           such other fringe
benefits, commensurate with those available to other executives in comparable
positions with the Bank in accordance with the policies of Bank as in effect
from time to time.

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3.7           Vacations.  During the Term of this Agreement, the
Executive shall be entitled to paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Bank as in effect for
the Executive or for other executives in comparable positions with the Bank; provided,
however, that the Executive shall be entitled to earn paid vacation at
the rate of not less than 25 days vacation days for each calendar year, of
which at least 10 days must be taken consecutively.  Vacation may be accrued up to a maximum of 30
days of earned vacation.  Once this
maximum is reached, the Executive shall cease to earn or accrue vacation unless
and until the Executive takes vacation and the Executive’s accrued vacation has
dropped below the maximum accrual level, at which time the Executive shall
recommence to earn and accrue paid vacation. 
The date or dates of vacation shall be determined by the Executive and
the President, and will be subject to the Bank’s business requirements.

4.             Indemnity.  The Bank shall indemnify and hold the
Executive harmless from any cost, expense or liability arising out of or
relating to any acts or decisions made by the Executive on behalf of or in the
course of performing services for the Bank to the same extent the Bank
indemnifies and holds harmless other executive officers and directors of the Bank
and in accordance with the Bank’s articles of incorporation, bylaws,
established policies and applicable law and plan.

5.             Certain Terms
Defined.  For purposes of this
Agreement:

5.1           “Accrued
Obligations” means the sum of the Executive’s Base Salary and
accrued vacation through the Date of Termination to the extent not theretofore
paid, outstanding expense reimbursements and any compensation previously
deferred by the Executive to the extent not theretofore paid.

5.2           “Base Salary”
means, the salary as provided in Section 3.1 as of the Date of Termination
of employment.

5.3           “Cause”
shall mean (i) the Executive willfully breaches or habitually neglects the
duties which the Executive is required to perform under this Agreement; (ii)
the Executive commits an intentional act of moral turpitude that has a material
detrimental effect on the reputation or business of the Bank; (iii) the
Executive is convicted of a felony or commits any material and actionable act
of dishonesty, fraud, or intentional material misrepresentation in the
performance of the Executive’s duties under this Agreement; (iv) the
Executive engages in an unauthorized disclosure or use of inside information,
trade secrets or other confidential information; or (v) the Executive
breaches a fiduciary duty, or willfully and materially violates any other duty,
law, rule, regulation or policy of the Bank or an affiliate.  If the Bank decides to terminate the
Executive’s employment for Cause, the Bank will provide the Executive with
notice specifying the grounds for termination, accompanied by a brief written
statement stating the relevant facts supporting such grounds.

5.4           “Change of
Control” shall mean:

(a)           the acquisition by any
individual, entity, or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
(a “Person”) of beneficial ownership
(within the meaning of Rule 13d-3 

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promulgated under the Exchange Act) of 40% or more of
either (i) the then outstanding shares of common stock of HCC (the “Outstanding HCC Common Stock” or (ii) the combined voting
power of the then outstanding voting securities of the HCC entitled to vote
generally in the election of directors (the “Outstanding
HCC Voting Securities”); provided, however, that for
purposes of this Subsection (a), the following acquisitions shall not
constitute a Change of Control; (i) any acquisition directly from the HCC, (ii)
any acquisition by the HCC that reduces the number of shares issued and
outstanding through a stock repurchase program or otherwise, (iii) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the HCC or any corporation controlled by the HCC or (iv) any
acquisition by any corporation pursuant to a transaction which complies with
clauses (i), (ii) and (iii) of Subsection (c) of this Section 5.4; or

(b)           a majority of the
individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason other than
resignation, death or disability to constitute at least a majority of the
Board; provided, however, that any individual becoming a director
subsequent to the Effective Date whose election, or nomination for election by
the HCC’s shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board; or

(c)           consummation of a
reorganization, merger or consolidation or sale or other disposition of all or
substantially all of the assets of the HCC (a “Business
Combination”), in each case, unless, following such Business
Combination, (i) all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding HCC Common Stock
and Outstanding HCC Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of,
respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns the HCC or all or
substantially all of the HCC’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding HCC Common
Stock and Outstanding HCC Voting Securities, as the case may be, (ii) no Person
(excluding any corporation resulting from such Business Combination or any
employee benefit plan (or related trust) of the HCC or such corporation
resulting from such Business Combination) beneficially owns, directly or
indirectly, 20% or more of, respectively, the then outstanding shares of common
stock of the corporation resulting from such Business Combination or the
combined voting power of the then outstanding voting securities of such
corporation except to the extent that such ownership existed prior to the
Business Combination, and (iii) at least a majority of the members of the board
of directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board, providing for such Business
Combination; or

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(d)           approval by the
shareholders of the HCC of a complete liquidation or dissolution of the HCC.

5.5           “Code”
means the Internal Revenue Code of 1986, as amended and any successor
provisions to such sections.

5.6           “Common Stock”
means shares of HCC’s common stock, no par value.

5.7           “Date of
Termination” means (i) if the Executive’s employment is terminated
due to the Executive’s death, the Date of Termination shall be the date of
death; (ii) if the Executive’s employment is terminated due to Disability, the
Date of Termination is the Disability Effective Date; (iii) if the Executive’s
employment is terminated by the Bank for Cause, the Date of Termination is the
date on which the Bank gives notice to the Executive of such termination; (iv)
if the Executive’s employment is terminated by the Bank without Cause or by the
Executive, the Date of Termination shall be the date specified in the notice of
termination (which date shall not be more than 30 days after the date on which
such notice of termination is given); and (v) if the Executive’s employment
terminates for any other reason, the Date of Termination shall be the Executive’s
final date of employment.

5.8           “Disability”
shall mean a physical or mental condition of the Executive which occurs and
persists and which, in the written opinion of a physician selected by the Bank
or its insurers and acceptable to the Executive or the Executive’s legal
representative, and, in the written opinion of such physician, the condition
will render the Executive unable to return to his duties for an indefinite
period of not less than 90 days.

6.             Termination.

6.1           This Agreement may be
terminated for the following reasons:

(a)           Death.  This Agreement and Executive’s employment shall
terminate automatically upon the Executive’s death.

(b)           Disability.  In the event of the Executive’s Disability, the
Bank may give the Executive a notice of termination.  In such event, this Agreement and Executive’s
employment  with the Bank shall terminate
effective on the 30th day after receipt of such notice by the Executive (the “Disability
Effective Date”) provided that within the 30 days after such receipt, the
Executive shall not have returned to full-time performance of the Executive’
duties.

(c)           Cause.  The Bank may terminate this Agreement and Executive’s
employment for Cause.

(d)           Without Cause.  The Bank may terminate this Agreement and Executive’s
employment without Cause.

(e)           Voluntary
Termination By Executive.  The
Executive may terminate this Agreement and his employment with the Bank with or
without cause.

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6.2           Certain Benefits
upon Termination.

(a)           Termination without
Cause.  If, during the Term, the Bank
shall terminate the Executive’s employment for any reason other than Cause,
death or Disability, the Bank shall pay to the Executive in a lump sum in cash
within 30 days after the Date of Termination the aggregate of the following
amounts:

(i)            the Accrued
Obligations; and

(ii)           an amount equal to the
greater of (A)(x) twelve (12) months of Employee’s Base Salary then in
effect plus (y) the highest annual bonus paid or payable, including any
bonus or portion thereof which has been earned but deferred (and annualized for
any year during which the Executive was employed for less than twelve full
months), during the Term of this agreement, but not to exceed $100,000, or (B)
an amount equal to the number of months remaining on the Term of this Agreement
at the time of termination multiplied by the monthly Base Salary then in
effect.

(b)           Termination Upon
Change of Control.  If, during the
Term, the Bank shall terminate the Executive’s employment without Cause in
connection with a Change of Control and such termination occurs within 120 days
before or 12 months following a Change of Control, the Bank shall pay to the
Executive in a lump sum in cash within 30 days after the Date of Termination
the aggregate of the following amounts:

(i)            the Accrued
Obligations; and

(ii)           an amount equal to the
greater of (A)(x) twelve (12) months of Employee’s Base Salary then in
effect plus (y) the highest annual bonus paid or payable, including any
bonus or portion thereof which has been earned but deferred (and annualized for
any year during which the Executive was employed for less than twelve full
months), during the Term of this agreement, but not to exceed $100,000, or (B)
an amount equal to the number of months remaining on the Term of this Agreement
at the time of termination multiplied by the monthly Base Salary then in effect.

(c)           Death.  If the Executive’s employment terminates
during the Term by reason of the Executive’s death, this Agreement shall
terminate without further obligations to the Executive’s legal representatives
under this Agreement, other than for payment of Accrued Obligations and any
Bonus Award for the year in which the death occurred prorated through the Date
of Termination.  Accrued Obligations shall
be paid to the Executive’s estate or beneficiary, as applicable, in a lump sum
in cash within 30 days of the Date of Termination; provided, however,
that payment may be deferred until the Executive’s executor or personal
representative has been appointed and qualified pursuant to the laws in effect
in the Executive’s jurisdiction of residence at the time of the Executive’s
death.  The Executive’s estate and/or
beneficiaries shall be entitled to receive, benefits at least equal to the most
favorable benefits provided by the Bank to the estate and beneficiaries of
other executives in comparable positions with the Bank under such plans,
programs, practices and policies relating to death benefits, if any as in
effect on the date of the Executive’s death.

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(d)           Disability.  If the Executive’s employment terminates
during the Term by reason of the Executive’s Disability, this Agreement shall
terminate without further obligations to the Executive under this Agreement,
other than for payment of Accrued Obligations and any Bonus Award for the year
in which the termination occurs prorated through the Date of Termination.

(e)           Cause/Voluntary
Termination.

(i)            If the Bank terminates
this Agreement and the Executive’s employment for Cause during the Term, this
Agreement shall terminate without further obligations to the Executive other
than the obligation to pay to the Executive the Accrued Obligations.

(ii)           Subject to the
provisions of Section 6.2(e)(iii), if the Executive’s employment
terminates due to the Executive’s voluntary termination during the Term, this
Agreement shall terminate without further obligations to the Executive other
than the obligation to pay to the Executive 
the Accrued Obligations.

(iii)          If Executive gives
written notice to the Bank during the 18th full calendar
month following the Effective Date of his desire to terminate this Agreement
and his employment with an effective date 30 days following the date of
delivery of such notice, then the Bank shall accept the notice of termination
and pay Executive $300,000, payable $16,666.66 per month for 18 months
commencing on the first full calendar month following Executive’s termination
date, provided however, that Executive does not breach any of his remaining
obligations under this Agreement or the Non-Compete Non Solicitation and
Confidentiality Agreement with HCC and the Bank dated the date hereof.

(f)            Single Trigger
Event.  The provisions for payments
contained in this Section 6.2 may be triggered only once during the term of
this Agreement, so that, for example, should the Executive be terminated
because of a Disability and should there thereafter be a Change of Control,
then the Executive would be entitled to be paid only under Section 6.2(d) and
not under Section 6.2(b) as well.

7.             Assignment.  This Agreement will inure to the benefit of
and be binding upon the Bank and any of its successors and assigns.  In view of the personal nature of the
services to be performed under this Agreement by the Executive, the Executive
will not have the right to assign or transfer any of his rights, obligations or
benefits under this Agreement.  The Bank
will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of the Bank to assume expressly and agree to perform this Agreement in
the same manner and to the same extent that the Bank would be required to
perform it if no such succession had taken place.  As used in this Agreement, “Bank” shall mean
the Bank as hereinbefore defined and any successor to its business and/or
assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

8.             Confidential
Information.  During the Term of this
Agreement and thereafter, the Executive shall not, except as may be required to
perform his duties hereunder or as required by 

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applicable law, disclose to others for use, whether
directly or indirectly, any Confidential Information regarding the Bank, HCC or
any subsidiary or affiliate thereof (“Bank Group”).  “Confidential Information”
shall mean information about the Bank Group, its respective clients and
customers that is not available to the general public and that was learned by
the Executive in the course of his employment by the Bank, including (without
limitation) any data, formulae, information, proprietary knowledge, trade
secrets and client and customer lists and all papers, resumes, records and the
documents containing such Confidential Information.  The Executive acknowledges that such Confidential
Information is specialized, unique in nature and of great value to the Bank
Group, and that such information gives the Bank Group a competitive
advantage.  Upon the termination of his
employment, the Executive will promptly deliver to the Bank all documents (and
all copies thereof) containing any Confidential Information.

9.             Noncompetition.  The Executive agrees that during the Term of
this Agreement, he will not, directly or indirectly, without the prior written
consent of the Bank, provide consultative service with or without pay, own,
manage, operate, join, control, participate in, or be connected as a
stockholder, partner, or otherwise with any business, individual, partner,
firm, corporation, or other entity which is then in competition with the Bank
or any present affiliate of the Bank; provided, however, that the
“beneficial ownership” by the Executive, either individually or as a member of
a “group,” as such terms are used in Regulation 13D of the Exchange Act, of not
more than 1% of the voting stock of any publicly held corporation shall not be
a violation of this Agreement.  It is
further expressly agreed that the Bank will or would suffer irreparable injury
if the Executive were to compete with the Bank or any subsidiary or affiliate
of the Bank in violation of this Agreement and that the Bank would by reason of
such competition be entitled to injunctive relief in a court of appropriate
jurisdiction, and the Executive further consents and stipulates to the entry of
such injunctive relief in such a court prohibiting the Executive from competing
with the Bank or any subsidiary or affiliate of the Bank in violation of this
Agreement.

10.           Right
to Bank Materials.  The Executive
agrees that all lists, materials, books, files, reports, correspondence,
records, and other documents (“Bank Materials”)
used, prepared, or made available to the Executive, shall be and shall remain
the property of the Bank.  Upon the
termination of his employment, all Bank Materials shall be returned immediately
to the Bank, and the Executive shall not make or retain any copies thereof.

11.           Anti-solicitation.  The Executive promises and agrees that during
the Term of this Agreement, and for a period of one (1) year
thereafter or for so long as Employee is receiving payment from the Bank
pursuant to Section 6.2(a) or Section 6.2(e)(iii), whichever is
longer, he will not for himself or any individual, partnership, corporation,
limited liability company or other entity, directly or indirectly, use any
Confidential Information to influence or attempt to influence customers,
franchisees, landlords, or suppliers of the Bank or any of its present or
future subsidiaries or affiliates, to divert their business to any individual,
partnership, firm, corporation or other entity then in competition with the
business of the Bank, or any subsidiary or affiliate of the Bank.

12.           Soliciting
Employees.  The Executive promises
and agrees that during the Term of this Agreement and for a period of one (1) year
thereafter or for so long as Employee is receiving payment from the Bank
pursuant to Section 6.2(a) or Section 6.2(e)(iii), whichever is
longer, the 

 9
 

Executive will not, directly or indirectly,
individually or as a consultant to, or as an employee, officer, stockholder,
director or other owner of or participant in any business, solicit (or assist
in soliciting) any person who is then, or at any time within six (6) months
prior thereto was, an employee of the Bank who earned annually $25,000 or more
as an employee of the Bank during the last six (6) months of his or her own
employment to work for (as an employee, consultant or otherwise) any business,
individual, partnership, firm, corporation, or other entity whether or not
engaged in competitive business with any entity in the Bank Group.

13.           American
Jobs Creation Act of 2004.  In the
event that either party after consultation with its or his tax adviser
reasonably determines that any item payable by the Bank to the Executive would
be, or is reasonably likely to be, 
pursuant to Section 409A of the Code, as amended by the American Jobs
Creation Act of 2004, P.L. 108-357 or any regulations promulgated thereunder
includible in the Executive’s gross income in a taxable year before the year(s)
in which the Executive actually receives the item, such party shall notify the
other party in writing.  Any such notice
shall specify: (a) in reasonable detail the basis and reasons for such party’s
determination; (b) any Internal Revenue Service notices, regulations, revenue
rulings or procedures, or other authority for the party’s determination; and
(c) any proposed amendment(s) to this Agreement that the notifying party
believes would prevent the inclusion of such item in a tax year before the
Executive’s actual year of receipt of such item of income.  If such notification specifies proposed
amendment(s) to this Agreement, the parties agree to negotiate in good faith
the terms and conditions of an amendment to this Agreement.  Provided,
however, nothing in this Section 13 shall be construed or
interpreted to require the Bank to increase any amounts payable to the
Executive pursuant to this Agreement or to consent to any amendment that would
materially and adversely change the Bank’s financial accounting or tax
treatment of the payments to the Executive under this Agreement.

14.           Miscellaneous.

14.1         Notice.  For the purpose of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by United
States certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth below, or to such other
addresses as either party may have furnished to the other in writing in
accordance herewith, except that notice of a change of address shall be
effective only upon actual receipt:

Company:                                                                             HERITAGE
COMMERCE BANK

150 Almaden Boulevard

San Jose, CA 95113

Attn:  President

with a copy to:                                                    BUCHALTER
NEMER

1000 Wilshire Boulevard, Suite 1500

Los Angeles, CA  90017-2457

Attn:  Mark A. Bonenfant, Esq.

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Executive:                          JAMES
MAYER

2596 Danville Blvd.

Alamo, CA 94501

14.2         Amendments or
Additions.  No amendment,
modification or additions to this Agreement shall be binding unless in writing
and signed by both parties hereto.

14.3         Section Headings.  The section headings used in this Agreement
are included solely for convenience and shall not affect, or be used in
connection with, the interpretation of this Agreement.

14.4         Severability.  The provisions or any portion of the provisions
of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.

14.5         Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed to be an original, but both of
which together will constitute one and the same instrument.

14.6         Mediation.  Prior to engaging in any legal or equitable
litigation or other dispute resolution process, regarding any of the terms and
conditions of this Agreement between the parties, or concerning the subject
matter of the Agreement between the parties, each party specifically agrees to
engage in good faith, in a mediation process at the expense of the Bank,
complying with the procedures provided for under California Evidence Code
Sections 1115 through and including 1125, as then currently in effect.  The parties further and specifically agree to
use their best efforts to reach a mutually agreeable resolution of the
matter.  The parties understand and
specifically agree that should any party to this Agreement refuse to
participate in mediation for any reason, the other party will be entitled to
seek a court order to enforce this provision in any court of appropriate
jurisdiction requiring the dissenting party to attend, participate, and to make
a good faith effort in the mediation process to reach a mutually agreeable
resolution of the matter.

14.7         Arbitration.  To the extent not resolved through mediation
as provided in Section 14.6, any controversy arising out of or relating to
the Executive’s employment (whether or not before or after the expiration of
the Term of employment), any termination of the Executive’s employment, this
Agreement, the enforcement or interpretation of any such an agreement, or
because of an alleged breach, default, or misrepresentation in connection with
any of the provisions of such an agreement, including (without limitation) any
state or federal statutory claims, shall be submitted to arbitration in
San Jose County, California, before a sole arbitrator (the “Arbitrator”)
selected from judicial arbitration mediation services (“JAMS”), or if JAMS is
no longer able to supply the arbitrator, such arbitrator shall be selected from
the American Arbitration Association (“AAA”), and shall be conducted in
accordance with the provisions of California Code of Civil Procedure §§ 1280 et
seq. as the exclusive remedy of such dispute; provided, however, that
provisional injunctive relief may, but need not, be sought in a court of law
while arbitration proceedings are pending, and any provisional injunctive
relief granted by such court shall remain effective until the matter is finally
determined by the Arbitrator.  Final
resolution of any dispute through arbitration may include any remedy or relief 

 11
 

that the Arbitrator deems just and equitable,
including any and all remedies provided by applicable state or federal
statutes.  At the conclusion of the
arbitration, the Arbitrator shall issue a written decision that sets forth the
essential findings and conclusions upon which the Arbitrator’s award or
decision is based.  Any award or relief
granted by the Arbitrator hereunder shall be final and binding on the parties
hereto and may be enforced by any court of competent jurisdiction.

14.8         Miscellaneous.  No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.

14.9         Entire Agreement.  With the exception of the Non-Compete,
Non-Solicitation and Confidentiality Agreement, this Agreement embodies
the entire agreement of the parties hereto respecting the matters within its
scope and this Agreement supersedes all prior and contemporaneous agreements of
the parties hereto that directly or indirectly bears upon the subject matter
hereof.  Any prior negotiations,
correspondence, agreements, proposals or understandings relating to the subject
matter hereof shall be deemed to have been merged into this Agreement, and to
the extent inconsistent herewith, such negotiations, correspondence,
agreements, proposals, or understandings shall be deemed to be of no force or
effect.  There are no representations,
warranties, or agreements, whether express or implied, or oral or written, with
respect to the subject matter hereof, except as expressly set forth herein.

14.10       Governing Law.  The validity, interpretation, construction
and performance of this Agreement shall be governed by the laws of the State of
California without regard to its conflicts of law principles.

14.11       Withholding.  Any payments provided for hereunder shall be
paid net of any applicable withholding required under federal, state or local
law.

14.12       Attorney Fees.  In the event of any action, suit or
proceeding brought under or in connection with this Agreement, the prevailing
party therein shall be entitled to recover, and the other party hereto agrees
to pay, the prevailing party’s costs and expenses in connection therewith,
including reasonable attorneys’ fees.

14.13       Survival.  The provisions of this Agreement that may be
reasonably interpreted as surviving termination of this Agreement, including
Sections 8, 9, 10, 11, 12, 13, and 14 (in its entirety) shall continue in
effect after termination of this Agreement.

 12
 

IN WITNESS WHEREOF, each
of the parties hereto has executed this Agreement on the date first indicated
above.

	
  

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  HERITAGE BANK OF COMMERCE,

  
	
   

  	
  a California banking corporation

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Walter
  Kaczmarek

  	
   

  
	
   

  	
   

  	
  Walter
  Kaczmarek,

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Mayer

  	
   

  
	
   

  	
   

  	
  James Mayer

  
					

 

 13Exhibit 10.5

NON-COMPETE, NON-SOLICITATION

AND CONFIDENTIALITY AGREEMENT

THIS NON-COMPETE, NON-SOLICITATION AND CONFIDENTIALITY
AGREEMENT (this “Agreement”) is entered into this 8th day of February, 2007, by and among Heritage
Commerce Corp, a California Corporation (“Heritage”), Heritage Bank of
Commerce, a California banking corporation (“HBC”) and James Mayer (“Shareholder”).

WHEREAS, concurrently with the execution of this
Agreement, Heritage, HBC and Diablo Valley Bank (“Diablo”) have entered
into that certain Agreement and Plan of Merger (the “Merger Agreement”)
dated as of February 8, 2007 whereby on the Effective Date (as defined in
the Merger Agreement) Diablo will merge with and into HBC and HBC shall survive
the merger (the “Merger”).

WHEREAS, Shareholder is the President and Chief
Executive Officer of Diablo and beneficially owns approximately 5.77% of the
issued and outstanding shares of Diablo common stock;

WHEREAS, Shareholder acknowledges that the execution
and delivery of this Agreement by Shareholder is a condition precedent to the
obligations of the parties entering into the Merger Agreement and the
consummation of the Merger, and Shareholder acknowledges and agrees that
Heritage, HBC and Diablo would not proceed forward and consummate the transactions
contemplated under the Merger Agreement unless Shareholder enters into this
Agreement;

WHEREAS, Heritage, HBC and Shareholder acknowledge
that the covenants and agreements of Shareholder contained in this Agreement
are necessary to protect and preserve Diablo’s business for the benefit of
Heritage and HBC after consummation of the transactions contemplated by the Merger
Agreement;

WHEREAS, Shareholder has significant knowledge and
information concerning the business of Diablo and that such business is very
competitive;

WHEREAS, Shareholder will receive significant
consideration for the Shareholder’s exchange of his Diablo common stock through
the Merger;

WHEREAS, HBC has agreed to provide Shareholder with a
three year employment agreement pursuant to which Shareholder will become an
Executive Vice President of HBC on the Effective Date (as defined herein);

WHEREAS, this Agreement shall become effective at the
Effective Time (as defined in the Merger Agreement) of the Merger (the “Effective
Date”);

NOW, THEREFORE, in consideration of the promises and
covenants contained herein and for other good and valuable consideration, the
receipt, sufficiency and adequacy of which are mutually acknowledged by each
party, it is agreed as follows:

1.             Definitions.  Capitalized terms used in this Agreement not
otherwise defined have the meaning given such term in the Merger Agreement.  For purposes of this Agreement, the term “Business”
means the business of banking (including, without limitation, the acceptance of
deposits and the making of loans) as conducted by state chartered banks,
nationally chartered banks or office of thrift supervision chartered
institutions conducting business in the state of California (a) to be
undertaken in the formation of a new banking organization or (b) engaged
in by an existing banking organization with $1 billon or less of assets.

2.             Purpose.  Shareholder acknowledges and agrees that the
market for the Business is very competitive within the Restrictive Territory
(as defined herein), and one way that Diablo maintained its business and its
competitive position in the marketplace prior to the Closing was by investing
time and money in developing proprietary products, unique approaches to the
business, banking systems and strong client, vendor, and employee
relationships.  Shareholder further
acknowledges and agrees that proprietary and other information related to such 

 1
 

products, approaches and
relationships are highly confidential, and maintaining that confidentiality is
critical to Diablo’s success. 
Shareholder further acknowledges and agrees that Diablo has invested
substantial time and resources into developing relationships, customer lists
and business models and strategies and that disruption of such relationships or
misuse of such lists, models, and strategies would damage Heritage and HBC.

3.             Shareholder
Covenants.

(a)           Non-Competition.  Shareholder hereby covenants and agrees that
from the Effective Date until the third (3rd) anniversary of the Effective Date (“Restricted Period”),
Shareholder will not without the prior written consent of Heritage, engage or
participate or have any interest, directly or indirectly, in any Business
anywhere in the counties of Santa Clara, Alameda, Contra Costa, Marin,
San Francisco and San Mateo located in the State of California (“Restricted
Territory”) (all such entities shall be referred to each as “Competitor” or
collectively as “Competitors,”), with respect to the following acts:  (i) own any equity interest in any
Competitor; (ii) operate, join, control, advise, become a founder or
otherwise participate in any Competitor; (iii) lend credit or money for the
purpose of assisting another to establish or operate any Competitor; (iv)
request or advise any customer, strategic partner or vendor of Diablo that
becomes a present or future customer, strategic partner or vendor of Heritage,
HBC or their subsidiaries now and hereinafter existing (collectively, the “Affiliated
Companies”) to withdraw, curtail or cancel its business with Heritage, HBC
or the Affiliated Companies anywhere in the Restricted Territory;
(v) induce or influence (or attempt to induce or influence) any person or
entity who is engaged (as an employee, agent, independent contractor or
otherwise) by Heritage, HBC or the Affiliated Companies to terminate his, her
or its employment or engagement for the purpose of obtaining employment with a
Competitor; (vi) solicit any employee of Heritage, HBC or the Affiliated
Companies to leave employment and become affiliated with any Competitor; (vii)
solicit any actual or “prospective customer” (as hereinafter defined), which
was served by Diablo in connection with any business of Diablo, or (viii)
solicit, influence or attempt to influence any customer which is or was served
by Diablo to discontinue its business or service available from Heritage, HBC
or the Affiliated Companies; provided, that, Shareholder may own
and hold as an investment of up to 1% of any corporation within the Restricted
Territory that is listed on a national stock exchange and that is engaged in a
business that is competitive with Heritage, HBC or an Affiliated Company, but
Shareholder may not otherwise participate (whether in management or otherwise)
in such corporation.  A “prospective
customer” shall mean a company, person or other entity with which
Shareholder knows, or reasonably should know, that Diablo has had actual
contact with or has begun formulating a targeted strategy for contact at any
time during the term of this Agreement in connection with the operation of the
Business.  “Engaged in business”
shall include, without limitation, establishment of goodwill or business
reputation, maintenance of business assets and properties, and dealings with
customers, strategic partners, prospective customers, suppliers, or vendors.

(b)           Confidentiality.  Shareholder acknowledges and agrees that the
Shareholder has occupied a position of trust and confidence with Diablo prior
to the date hereof and has had access to and has become familiar with the
following, any and all of which constitutes confidential information of Diablo
(collectively “Confidential Information”) (a) any and all proprietary intellectual
property or trade secrets concerning the business and affairs of Diablo,
product specifications, data, know-how, formulae, compositions, processes,
designs, graphs, drawings, samples, inventions and ideas, past, current and
planned research and development, customer lists, current and anticipated
customer requirements, price lists, market studies, business plans, computer
software and programs (including object code and source code), database
technologies, systems, structures, architectures, processes, improvements,
devices, know-how, discoveries, concepts, methods, information of Diablo and
any other information, however documented, of Diablo that is a trade secret
within the meaning of any applicable law; (b) any and all proprietary non-public
information concerning the business and affairs of Diablo (which includes any
historical financial statements, financial projections, and budgets, historical
and projected sales, capital spending budgets and plans, the names and
backgrounds of key personnel, contractors, agents, suppliers, personnel
training, techniques and materials, manufacturing methods, designs and
techniques, purchasing methods and techniques, however documented; and
(c) any and all notes, analyses, compilations, studies, summaries and
other material prepared by or for Diablo containing or based, in whole or part,
upon any information included in the foregoing.

Shareholder acknowledges and agrees that the
protection of the Confidential Information is necessary to protect and preserve
the value of Diablo’s business and proprietary properties being acquired by
Heritage and HBC.  Therefore, Shareholder
hereby agrees not to, at any time, disclose to any unauthorized Persons or use
for his or its own account or for the benefit of any third party any
Confidential Information, whether or not such information is 

 2
 

embodied in writing or other physical form or is
retained in the memory of Shareholder, without Heritage’s written consent,
unless and to the extent that the Confidential Information is or becomes
generally known to and available for use by the public other than as a result
of Shareholder’s fault or the fault of any other Person bound by a duty of
confidentiality to Heritage, HBC or the Affiliated Companies. Shareholder
agrees to deliver to Heritage at the Effective Date, and at any other time
Heritage may request, all documents, memoranda, notes, plans, records, reports
and other documentation, models, components, devices or computer software,
whether embodied in a disk or in other form (and all copies of all of the
foregoing), that contain Confidential Information and any other Confidential
Information that Shareholder may then possess or have under Shareholder’s
control.

(c)           Breach.  Shareholder, Heritage and HBC each recognize
and acknowledge that the Confidential Information and other knowledge
Shareholder has about Diablo and has and will obtain from Heritage, HBC or the
Affiliated Companies is special and unique, and any violation of the covenants
contained in this Agreement is likely to cause irreparable damage to Heritage,
HBC or the Affiliated Companies. 
Therefore, the parties agree that, upon any breach of any covenant
contained in this Section 3 by Shareholder, Heritage and HBC shall be
entitled to an appropriate injunction for a violation of such covenant,
threatened or actual, of such covenant, in addition to all other relief
available under applicable law.  If a court
or arbitrator has determined that Shareholder has committed a breach by
Shareholder of any covenant set forth in Section 3 of this Agreement, the Restricted
Period will be extended by the period of the duration of such breach.

(d)           Acknowledgment.  Shareholder acknowledges and agrees that the
restrictions set forth in this Section 3 are reasonable in scope and
essential to the preservation of Diablo’s business and proprietary properties
and that enforcement of these restrictions will not cause Shareholder any
hardship, and because of Shareholder’s background and experience, will not in
any manner preclude Shareholder from becoming gainfully employed in such a
manner and to such an extent as will provide a standard of living for
Shareholder and the members of Shareholder’s family of at least the sort and
fashion to which they have become accustomed. 
Each of Heritage, HBC and Shareholder acknowledges and agrees that the
covenants and agreements contained in this Section 3 have been negotiated
in good faith by each of them.  Each of
Heritage, HBC and Shareholder further acknowledges that (i) the goodwill
associated with the existing vendors, customers, assets and employees of Diablo
prior to the transactions contemplated herein is an integral component of the
value of Diablo to Heritage and HBC and is reflected in the consideration to be
received by Diablo shareholders, including the Shareholder pursuant to this
Agreement, and (ii) the covenants and agreements contained in this
Section 3 are necessary to preserve the value of Diablo’s business and
proprietary properties for Heritage and HBC following the transaction.  Each of Heritage, HBC and Shareholder
acknowledges that the limitations of time, geography and scope of activity
agreed to in Section 3 are reasonable because, among other things:  (A) Heritage, HBC and Diablo are engaged
in a highly competitive industry and have their operations in the Restricted
Territory, (B) Shareholder had unique access to, and will continue to have
access to, Confidential Information, including trade secrets, and know-how of Diablo
and its business and proprietary properties, (C) Shareholder is receiving
significant consideration in connection with the transactions contemplated by
the Merger Agreement and this Agreement, and (D) this Agreement provides
no more protection than is necessary to protect Heritage’s and HBC’s interest
in the goodwill of Diablo and its business and proprietary properties,
Confidential Information and Diablo, Heritage and HBC trade secrets.

(e)           No Disparagement.  Shareholder will not, directly or indirectly,
disparage Heritage and HBC, the business formerly conducted by Diablo, the
business conducted by Heritage and HBC or any shareholder, director, officer,
employee or agent of Heritage or HBC;

(f)            Future Employer.  Shareholder will, during the Restrictive
Period, within ten days after accepting any employment, consulting engagement,
engagement as an independent contractor, partnership or other association that
might reasonably involve the Business, advise Heritage of the identity of the
new employer, client, partner or other Person with whom Shareholder has become
associated.  Following receipt of such
notice, if Heritage in its reasonable judgment determines that Shareholder’s
proposed association involves a Person engaged in the Business, Heritage may
serve notice upon each such Person that such Shareholder is bound by this
Agreement and furnish each such Person with a copy of this Agreement or
relevant portions thereof.

(g)           Separate Agreement.  The covenants of Shareholder contained in
this Section 3 shall each be construed independently of any other
provision in this Agreement, and the existence of any claim or cause of 

 3
 

action of Shareholder
against Heritage or HBC whether predicated on this Agreement or otherwise,
shall not constitute a defense to the enforcement by Heritage or HBC of such
covenants.

(h)           Survival of
Covenants.  The covenants contained
in this Section 3 shall survive the termination of this Agreement by
either party hereto in accordance with the provisions of this Section 3.

4.             Conflict.  Shareholder represents and warrants to
Heritage and HBC that Shareholder has not executed any written agreement with
any other person or entity that would prohibit Shareholder from entering into
this Agreement.  Further, Shareholder
represents and warrants to Heritage and HBC that the execution of this
Agreement by Shareholder will not conflict with any obligations or duties which
Shareholder may have to prior employers or pursuant to any other agreement.

5.             Non-Disclosure of
Agreement.  Shareholder shall not
disclose the terms and provisions of this Agreement or any other document
executed in connection herewith except to Shareholder’s lawyers, accountants,
tax advisors and spouse or by law to any Person; provided that
Shareholder may disclose the non-competition and confidentiality covenants
contained in Section 3 of this Agreement to a prospective employer or
business partner with the prior written consent of Heritage.

6.             Successors and
Assigns.  This Agreement will be
binding upon Heritage and HBC and Shareholder and will inure to the benefit of
Heritage and HBC and its affiliates, successors and assigns.

7.             Waiver.  The rights and remedies of the parties to
this Agreement are cumulative and not alternative. Neither the failure nor any
delay by any party in exercising any right, power or privilege under this
Agreement will operate as a waiver of such right, power or privilege, and no
single or partial exercise of any such right, power or privilege will preclude
any other or further exercise of such right, power or privilege or the exercise
of any other right, power or privilege. To the maximum extent permitted by
applicable law, (a) no claim or right arising out of this Agreement can be
discharged, in whole or in part, by a waiver or renunciation of the claim or
right except in writing; (b) no waiver that may be given by a party will be
applicable except in the specific instance for which it is given; and (c) no
notice to or demand on one party will be deemed to be a waiver of any
obligation of such party, or of the right of the party giving such notice or
demand to require the other party, to take further action without notice or
demand as provided in this Agreement.

8.             Governing Law.  This Agreement will be governed by the laws
applied by courts of California to contracts entered into within that state by
parties residing within that state and having no connection to any other state.

9.             Jurisdiction;
Service of Process.  Any proceeding
arising out of or relating to this Agreement may be brought in the courts of
the State of California, or, if it has or can acquire jurisdiction, in the
United States District Court for the Northern District of California, and each
of the parties irrevocably submits to the exclusive jurisdiction of each such
court in any such proceeding, waives any objection it may now or hereafter have
to venue or to convenience of forum, agrees that all claims in respect of the
proceeding shall be heard and determined only in any such court and agrees not
to bring any proceeding arising out of or relating to this Agreement in any
other court.  The parties agree that
either or both of them may file a copy of this paragraph with any court as
written evidence of the knowing, voluntary and bargained agreement between the
parties irrevocably to waive any objections to venue or to convenience of
forum.  Process in any proceeding
referred to in the first sentence of this section may be served on any party as
required under California law.

10.           Severability.  Whenever possible, each provision and term of
this Agreement will be interpreted in a manner to be effective and valid, but
if any provision or term of this Agreement is held to be prohibited or invalid,
then such provision or term will be ineffective only to the extent of such
prohibition or invalidity, without invalidating or affecting in any manner
whatsoever the remainder of such provision or term or the remaining provisions
or terms of this Agreement. If any of the covenants set forth in Section 3
of this Agreement are held to be unreasonable, arbitrary or against public
policy, such covenants will be considered divisible with respect to scope, time
and geographic area, and in such lesser scope, time and geographic area, will
be effective, binding and enforceable against Shareholder to the fullest extent
under California law.

 4
 

11.           Execution of
Agreement.  This Agreement may be
executed in one or more counterparts, each of which will be deemed to be an
original copy of this Agreement and all of which, when taken together, will be
deemed to constitute one and the same agreement.  The exchange of copies of this Agreement and
of signature pages by facsimile transmission shall constitute effective
execution and delivery of this Agreement as to the parties and may be used in
lieu of the original Agreement for all purposes.  Signatures of the parties transmitted by
facsimile shall be deemed to be their original signatures for all purposes.

12.           Section Headings,
Construction.  The headings of
sections in this Agreement are provided for convenience only and will not
affect its construction or interpretation. All references to “Section” or “Sections”
refer to the corresponding Section or Sections of this Agreement unless
otherwise specified. All words used in this Agreement will be construed to be
of such gender or number as the circumstances require. Unless otherwise
expressly provided, the word “Including” does not limit the preceding words or
terms.

13.           Notices.  All notices, consents, waivers and other
communications under this Agreement must be in writing and will be deemed to
have been duly given when (a) delivered by hand (with written confirmation of
receipt); (b) sent by facsimile (with written confirmation of receipt); or (c)
when received by the addressee, if sent by a nationally recognized overnight
delivery service (receipt requested), in each case to the appropriate addresses
and facsimile numbers set forth below (or to such other addresses and facsimile
numbers as a party may designate by notice to the other parties):

Shareholder:                                                                             James
Mayer

2596 Danville Blvd.

Alamo, CA 94501

with a copy to:                                                                 Dylan
W. Wiseman

Littler Mendelson

2520 Venture Oaks Way, Suite 390

Sacramento, CA

Facsimile:  (916) 561-0828

Heritage and HBC:               Heritage
Commerce Corp

150 Almaden Blvd.

San Jose, California  95113

Attn:  Walter T. Kaczmek

Facsimile: (408) 534-4940

With copy to:                                                                      Buchalter
Nemer

1000 Wilshire Boulevard

Suite 1500

Los Angeles, CA  90017-2457

Attn:  Mark A. Bonenfant, Esq.

Facsimile:  (213) 896-0400

14.           Recitals.  The recitals are incorporated herein and made
a part of this Agreement.

15.           Entire Agreement.  This Agreement constitutes the entire
agreement between the parties with respect to the subject matter of this
Agreement and supersedes all prior written and oral agreements and
understandings between the parties with respect to the subject matter of this
Agreement.  This Agreement may not be
amended except by a written agreement executed by the party to be charged with
the amendment.

[signature page follows]

 5
 

IN WITNESS WHEREOF, the parties hereto have executed
this Non-Compete, Non-Solicitation and Confidentiality Agreement on the date
first set forth above.

	
   

  	
  HERITAGE COMMERCE CORP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Walter T. Kaczmarek

  	
   

  
	
   

  	
   

  	
  Walter T. Kaczmarek

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HERITAGE
  BANK OF COMMERCE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/.Walter T. Kaczmarek

  	
   

  
	
   

  	
   

  	
  Walter T. Kaczmarek

  	
   

  
	
   

  	
   

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SHAREHOLDER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ James Mayer

  	
   

  
	
   

  	
  James Mayer

  

 

 6

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