Document:

<PAGE>

                                                                 Exhibit 10.16.2

                                                     September 30, 2000

Greater Bay Bancorp
2860 W. Bayshore Road
Palo Alto, CA 94303
Attention: Kamran Husain

Dear Mr. Husain:

          This letter amendment (this "Amendment") is to confirm the changes
agreed upon between Wells Fargo Bank, National Association ("Bank") and Greater
Bay Bancorp ("Borrower") to the terms and conditions of that certain letter
agreement between Bank and Borrower dated as of November 4, 1999, as amended
from time to time (the "Agreement").  For valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Bank and Borrower hereby agree
that the Agreement shall be amended as follows to reflect said changes.

          1.   The Agreement is hereby amended (a) by deleting "November 2,
               2000" as the last day on which Bank will make advances under the
               Line of Credit, and by substituting for said date "October 30,
               2001," and (b) by deleting "Twenty Five Million Dollars
               ($25,000,000.00)" as the maximum principal amount available to
               Borrower under the Line of Credit, and by substituting for said
               amount "Forty Million Dollars ($40,000,000.00)," with such
               changes to be effective upon the execution and delivery to Bank
               of a promissory note substantially in the form of Exhibit A
               attached hereto (which promissory note shall replace and be
               deemed the Line of Credit Note defined in and made pursuant to
               the Agreement) and all other contracts, instruments and documents
               required by Bank to evidence such change. In no event shall
               proceeds of the Line of Credit be used to finance acquisitions.

          2.   Section 1.1(b) is hereby amended to read as follows:

               "(b) Borrowing and Repayment. Borrower may from time to time
                    -----------------------
               during the term of the Line of Credit borrow, partially or wholly
               repay its outstanding borrowings, and reborrow, subject to all of
               the limitations, terms and conditions contained herein or in the
               Line of Credit Note; provided however, that (i) the total
               outstanding borrowings under the Line of Credit shall not at any
               time exceed the maximum principal amount available thereunder, as
               set forth above, and that (ii) Borrower shall maintain a zero
               balance on the Line of Credit for a period of 30 consecutive
               calendar days during the term of the Line of Credit."

          3.   Section V.3(a) is hereby amended to read as follows:

               "(a) not later than 95 days after and as of the end of each
               fiscal year, an audited consolidated financial statement of
               Borrower, prepared by independent certified public accountants
               acceptable to Bank, and an unconsolidated financial statement of
               Borrower, prepared by Borrower, in all cases to include balance
<PAGE>

               sheet, income statement, and statement of cash flows, together
               with, for the audited statements, an unqualified opinion;"

          4.   The introductory paragraph of Section V.9 is hereby amended to
               read as follows:

               9.   Financial Condition. Maintain Borrower's financial condition
                    -------------------
               (and, with respect to paragraphs (c) and (d) below, cause all of
               Borrower's subsidiaries or Bank Subsidiaries (as applicable) to
               maintain their combined financial condition) as follows using
               generally accepted accounting principles consistently applied and
               used consistently with prior practices (except to the extent
               modified by the definitions herein), with compliance determined
               commencing with Borrower's financial statements for the period
               ending September 30, 1999:

          5.   The following is hereby added to the Agreement as Paragraph
               V.9(d):

               (d)  Non-Performing Assets not greater than one and fifteen
               hundredths percent (1.15%) of all Bank Subsidiaries' total loans
               and OREO, determined as of the end of each fiscal quarter, with
               Non-Performing Assets defined as the sum of all Bank
               Subsidiaries' non-performing loans and OREO, and with OREO
               defined as other real estate owned.

          6.   Section V.10 (Other Indebtedness) is hereby deleted.

          7.   Section V.14 (Year 2000 Compliance) is hereby deleted.

          8.   In consideration of the changes set forth herein and as a
               condition to the effectiveness hereof, immediately upon signing
               this Amendment Borrower shall pay to Bank a non-refundable fee of
               $40,000.00.

          9.   Except as specifically provided herein, all terms and conditions
               of the Agreement remain in full force and effect, without waiver
               or modification. All terms defined in the Agreement shall have
               the same meaning when used herein. This Amendment and the
               Agreement shall be read together, as one document.

          10.  Borrower hereby remakes all representations and warranties
               contained in the Agreement and reaffirms all covenants set forth
               therein. Borrower further certifies that as of the date of
               Borrower's acknowledgment set forth below there exists no default
               or defined event of default under the Agreement or any promissory
               note or other contract, instrument or document executed in
               connection therewith, nor any condition, act or event which with
               the giving of notice or the passage of time or both would
               constitute such a default or defined event of default.

          11.  The effective date of this Amendment shall be October 19, 2000.
<PAGE>

     Your acknowledgment of this Amendment shall constitute acceptance of the
foregoing terms and conditions. If not acknowledged on or before October 31,
2000, Bank agreements herein shall be null and void.

                                    Sincerely,

                                    WELLS FARGO BANK,
                                      NATIONAL ASSOCIATION

                                    By: /s/ Julius L. Young Jr.

                                    Title: Vice President

Acknowledged and accepted as of September 30, 2000:

GREATER BAY BANCORP

By: /s/ Steven C. Smith

Title: Executive Vice President, Chief Administrative Officer and Chief
Financial Officer

By: /s/ Kamrain F. Husain

Title: Senior Vice President, Finance & Risk Management
<PAGE>

                         REVOLVING LINE OF CREDIT NOTE

$40,000,000.00                                         San Francisco, California
                                                       October 19, 2000

     FOR VALUE RECEIVED, the undersigned GREATER BAY BANCORP ("Borrower")
promises to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION ("Bank")
at its office at 420 Montgomery, San Francisco, California, or at such other
place as the holder hereof may designate, in lawful money of the United States
of America and in immediately available funds, the principal sum of Forty
Million Dollars ($40,000,000.00), or so much thereof as may be advanced and be
outstanding, with interest thereon, to be computed on each advance from the date
of its disbursement as set forth herein.

DEFINITIONS:

     As used herein, the following terms shall have the meanings set forth after
each, and any other term defined in this Note shall have the meaning set forth
at the place defined:

     (a) "Business Day" means any day except a Saturday, Sunday or any other day
on which commercial banks in California are authorized or required by law to
close.

     (b) "Fixed Rate Term" means, for each advance requested hereunder, a period
of three (3) months commencing initially on the Business Day on which such
advance is made, and automatically renewing for a period of 3 months at the end
of each such 3 month period (or renewed period), during which the outstanding
principal amount under this Note related to such advance bears interest
determined in relation to LIBOR as in effect on the first Business Day of the
applicable 3 month period; provided however, that no Fixed Rate Term shall
extend beyond the scheduled maturity date hereof.  If any Fixed Rate Term would
end on a day that is not a Business Day, then such Fixed Rate Term shall be
extended to the next succeeding Business Day.

     (c) "LIBOR" means the rate per annum (rounded upward, if necessary, to the
nearest whole 1/8 of 1%) and determined pursuant to the following formula:

     LIBOR =           Base LIBOR
                -----------------

                100% - LIBOR Reserve Percentage

"Base LIBOR" means the rate per annum for United States dollar deposits quoted
by Bank as the Inter-Bank Market Offered Rate, with the understanding that such
rate is quoted by Bank for the purpose of calculating effective rates of
interest for loans making reference thereto, on the first day of a Fixed Rate
Term for delivery of funds on said date for a period of time approximately equal
to the number of days in such Fixed Rate Term and in an amount approximately
equal to the principal amount to which such Fixed Rate Term applies.  Borrower
understands and agrees that Bank may base its quotation of the Inter-Bank Market
Offered Rate upon such offers or other market indicators of the Inter-Bank
Market as Bank in its discretion deems appropriate including, but not limited
to, the rate offered for U.S. dollar deposits on the London Inter-Bank Market.

  (ii) "LIBOR Reserve Percentage" means the reserve percentage prescribed by the
Board of Governors of the Federal Reserve System (or any successor) for
"Eurocurrency Liabilities" (as defined in Regulation D of the Federal Reserve
Board, as amended), adjusted by Bank for expected changes in such reserve
percentage during the applicable Fixed Rate Term.
<PAGE>

     (d) "Prime Rate" means at any time the rate of interest most recently
announced within Bank at its principal office as its Prime Rate, with the
understanding that the Prime Rate is one of Bank's base rates and serves as the
basis upon which effective rates of interest are calculated for those loans
making reference thereto, and is evidenced by the recording thereof after its
announcement in such internal publication or publications as Bank may designate.

INTEREST:

     (a) Interest.  The outstanding principal balance of this Note shall bear
         --------
interest (computed on the basis of a 360-day year, actual days elapsed) at a
fixed rate per annum determined by Bank to be two fifths percent (0.40%) above
LIBOR in effect on the first day of the applicable Fixed Rate Term. Bank is
hereby authorized to note the interest rate applicable to this Note during the
term hereof and any payments made thereon on Bank's books and records (either
manually or by electronic entry) and/or on any schedule attached to this Note,
which notations shall be prima facie evidence of the accuracy of the information
noted.

     (b)  Additional LIBOR Provisions.
          ---------------------------

     (i) If Bank at any time shall determine that for any reason adequate and
reasonable means do not exist for ascertaining LIBOR, then Bank shall promptly
give notice thereof to Borrower.  If such notice is given and until such notice
has been withdrawn by Bank, then the outstanding principal balance hereof,
subsequent to the end of the Fixed Rate Term applicable thereto, shall bear
interest determined in relation to the Prime Rate.

     (ii) If any law, treaty, rule, regulation or determination of a court or
governmental authority or any change therein or in the interpretation or
application thereof (each, a "Change in Law") shall make it unlawful for Bank to
maintain interest rates based on LIBOR, then any such unlawful LIBOR-based loans
then outstanding shall be converted, at Bank's option, so that interest on the
portion of the outstanding principal balance subject thereto is determined in
relation to the Prime Rate; provided however, that if any such Change in Law
shall permit any LIBOR-based loans to remain in effect until the expiration of
the Fixed Rate Term applicable thereto, then such permitted LIBOR-based loans
shall continue in effect until the expiration of such Fixed Rate Term. Upon the
occurrence of any of the foregoing events, Borrower shall pay to Bank
immediately upon demand such amounts as may be necessary to compensate Bank for
any fines, fees, charges, penalties or other costs incurred or payable by Bank
as a result thereof and which are attributable to any LIBOR based interest loans
made available to Borrower hereunder, and, absent manifest error, any reasonable
allocation made by Bank among its operations shall be conclusive and binding
upon Borrower.

  (iii)  If any Change in Law or compliance by Bank with any request or
directive (whether or not having the force of law) from any central bank or
other governmental authority shall:

     (A)  subject Bank to any tax, duty or other charge with respect to making
          any LIBOR based loans, or change the basis of taxation of payments to
          Bank of principal, interest, fees or any other amount payable
          hereunder (except for changes in the rate of tax on the overall net
          income of Bank); or

     (B)  impose, modify or hold applicable any reserve, special deposit,
          compulsory loan or similar requirement against assets held by,
          deposits or other liabilities in or for the account of, advances or
          loans by, or any other acquisition of funds by any office of Bank; or
<PAGE>

     (C)  impose on Bank any other condition;

and the result of any of the foregoing is to increase the cost to Bank of
making, renewing or maintaining any LIBOR based loans hereunder and/or to reduce
any amount receivable by Bank in connection therewith, then in any such case,
Borrower shall pay to Bank immediately upon demand such amounts as may be
necessary to compensate Bank for any additional costs incurred by Bank and/or
reductions in amounts received by Bank which are attributable to such LIBOR
based loans.  In determining which costs incurred by Bank and/or reductions in
amounts received by Bank are attributable to any LIBOR based loans made
available to Borrower hereunder, any reasonable allocation made by Bank among
its operations shall be conclusive and binding upon Borrower.

     (d) Payment of Interest.  Interest accrued on this Note shall be payable on
         -------------------
the last day of each month, commencing November 30, 2000 and on the maturity
date of this Note.

     (e) Default Interest.  From and after the maturity date of this Note, or
         ----------------
such earlier date as all principal owing hereunder becomes due and payable by
acceleration or otherwise, the outstanding principal balance of this Note shall
bear interest until paid in full at an increased rate per annum (computed on the
basis of a 360-day year, actual days elapsed) equal to four percent (4%) above
the rate of interest from time to time applicable to this Note.

BORROWING AND REPAYMENT:

     (a) Borrowing and Repayment.  Borrower may from time to time during the
         -----------------------
term of this Note borrow, partially or wholly repay its outstanding borrowings,
and reborrow, subject to all of the limitations, terms and conditions of this
Note and of any document executed in connection with or governing this Note;
provided however, that the total outstanding borrowings under this Note shall
not at any time exceed the principal amount stated above.  The unpaid principal
balance of this obligation at any time shall be the total amounts advanced
hereunder by the holder hereof less the amount of principal payments made hereon
by or for Borrower, which balance may be endorsed hereon from time to time by
the holder.  The outstanding principal balance of this Note shall be due and
payable in full on October 30, 2001.

     (b) Advances.  Advances hereunder, to the total amount of the principal sum
         --------
stated above, may be made by the holder at the oral or written request of (i)
Kamran Husain, Steven Smith, Shawn Saunders or Mark Eschen, any one acting
alone, who are authorized to request advances and direct the disposition of any
advances until written notice of the revocation of such authority is received by
the holder at the office designated above, or (ii) any person, with respect to
advances deposited to the credit of any account of Borrower with the holder,
which advances, when so deposited, shall be conclusively presumed to have been
made to or for the benefit of Borrower regardless of the fact that persons other
than those authorized to request advances may have authority to draw against
such account.  The holder shall have no obligation to determine whether any
person requesting an advance is or has been authorized by Borrower.

     (c) Application of Payments.  Each payment made on this Note shall be
         -----------------------
credited first, to any interest then due and second, to the outstanding
principal balance hereof, with such payments applied to the oldest Fixed Rate
Term first.

PREPAYMENT:

     (a) Borrower may prepay principal on any portion of this Note at any time
and in any amount.  In consideration of Bank providing this prepayment option to
Borrower, or if this Note
<PAGE>

shall become due and payable at any time prior to the last day of the Fixed Rate
Term applicable thereto by acceleration or otherwise, Borrower shall pay to Bank
immediately upon demand a fee which is the sum of the discounted monthly
differences for each month from the month of prepayment through the month in
which such Fixed Rate Term matures, calculated as follows for each such month:

     (i)    Determine the amount of interest which would have accrued each month
            ---------
            on the amount prepaid at the interest rate applicable to such amount
            had it remained outstanding until the last day of the Fixed Rate
            Term applicable thereto.

     (ii)   Subtract from the amount determined in (i) above the amount of
            --------
            interest which would have accrued for the same month on the amount
            prepaid for the remaining term of such Fixed Rate Term at LIBOR in
            effect on the date of prepayment for new loans made for such term
            and in a principal amount equal to the amount prepaid.

     (iii)  If the result obtained in (ii) for any month is greater than zero,
            discount that difference by LIBOR used in (ii) above.

Borrower acknowledges that prepayment of such amount may result in Bank
incurring additional costs, expenses and/or liabilities, and that it is
difficult to ascertain the full extent of such costs, expenses and/or
liabilities. Borrower, therefore, agrees to pay the above-described prepayment
fee and agrees that said amount represents a reasonable estimate of the
prepayment costs, expenses and/or liabilities of Bank.  If Borrower fails to pay
any prepayment fee when due, the amount of such prepayment fee shall thereafter
bear interest until paid at a rate per annum two percent (2%) above the Prime
Rate in effect from time to time (computed on the basis of a 360-day year,
actual days elapsed).  Each change in the rate of interest on any such past due
prepayment fee shall become effective on the date each Prime Rate change is
announced within Bank.

EVENTS OF DEFAULT:

     The occurrence of any of the following shall constitute an "Event of
Default" under this Note:

          (a) The failure to pay, within 5 calendar days after the due date, any
          principal, interest, fees or other charges hereunder or under any
          contract, instrument or document executed in connection with this
          Note; provided however, that with respect to interest, fees or other
          charges, no Event of Default shall be deemed to have occurred if the
          same are paid later than the fifth day after the applicable due date
          but within 30 days after the applicable due date no more than two
          times during the term of this Note.

     (b)  The filing of a petition by or against Borrower under any provisions
of the Bankruptcy Reform Act, Title 11 of the United States Code, as amended or
recodified from time to time, or under any similar or other law relating to
bankruptcy, insolvency, reorganization or other relief for debtors (and, if
                                                                    ---
filed against Borrower, the proceeding in question is not dismissed within 60
days after its filing, provided further, that Bank shall not be required to make
advances during such 60 day period); the appointment of a receiver, trustee,
custodian or liquidator of or for any part of the assets or property of
Borrower; Borrower becomes insolvent, makes a general assignment for the benefit
of creditors or is generally not paying its debts as
<PAGE>

they become due; or any attachment or like levy on any property of Borrower with
a book value of $5,000,000.00 or more.

     (c)     The dissolution or liquidation of Borrower.

     (d)  Any default in the payment or performance of any obligation, or any
defined event of default, under any provisions of any contract, instrument or
document pursuant to which Borrower has incurred (i) any obligation for borrowed
money, (ii) any purchase obligation, or (iii) any other liability of any kind to
any person or entity, including the holder, and, in the cases of (ii) or (iii)
                                            ---
the obligation or other liability exceeds $5,000,000.00, and, in the cases of
                                                         ---
(i), (ii) or (iii), the creditor has taken action(s) with respect to such
default, which action may consist solely of the sending of a notice of default.

     (e)  Any financial statement provided by Borrower to Bank proves to be
incorrect, false or misleading in any material respect.

     (f)     Any violation or breach of any provision of, or any defined event
of default under, any addendum to this Note or any loan agreement, guaranty,
security agreement, deed of trust, mortgage or other document executed in
connection with or securing this Note, and, if such violation or breach is by
                                       ---
its nature susceptible of being cured, the same is not cured within 30 days
after the date Borrower first knew (or, using reasonable due diligence, should
have known) thereof.

MISCELLANEOUS:

     (a)     Remedies. Upon the occurrence of any Event of Default, the holder
             --------
of this Note, at the holder's option, may declare all sums of principal and
interest outstanding hereunder to be immediately due and payable without
presentment, demand, notice of nonperformance, notice of protest, protest or
notice of dishonor, all of which are expressly waived by Borrower, and the
obligation, if any, of the holder to extend any further credit hereunder shall
immediately cease and terminate. Borrower shall pay to the holder immediately
upon demand the full amount of all payments, advances, charges, costs and
expenses, including reasonable attorneys' fees (to include outside counsel fees
and all allocated costs of the holder's in-house counsel), expended or incurred
by the holder in connection with the enforcement of the holder's rights and/or
the collection of any amounts which become due to the holder under this Note,
and the prosecution or defense of any action in any way related to this Note,
including without limitation, any action for declaratory relief, whether
incurred at the trial or appellate level, in an arbitration proceeding or
otherwise, and including any of the foregoing incurred in connection with any
bankruptcy proceeding (including without limitation, any adversary proceeding,
contested matter or motion brought by Bank or any other person) relating to
Borrower or any other person or entity.

     (b)     Governing Law.  This Note shall be governed by and construed in
             -------------
accordance with the laws of the State of California.
<PAGE>

     IN WITNESS WHEREOF, the undersigned has executed this Note as of the date
first written above.

GREATER BAY BANCORP

By: /s/ Steven C. Smith
Title: EVP, CFO & CAO

By: /s/ Kamran F. Husain
Title: SVP, Finance & Risk Management<PAGE>

                                                                   Exhibit 10.17

                           LINE OF CREDIT AGREEMENT

THIS LINE OF CREDIT AGREEMENT ("Agreement") is made and entered into as of
November 1, 2000 by and between GREATER BAY BANCORP, a California corporation
("Borrower") and UNION BANK OF CALIFORNIA, N.A. ("Bank").

                             ARTICLE 1.  THE LOAN

1.1  Revolving Loan.  Bank will loan to Borrower an amount not to exceed TWENTY
FIVE MILLION AND NO/100 DOLLARS ($25,000,000.00) outstanding in the aggregate at
any one time ("Loan").  Borrower may borrow, repay and reborrow all or part of
the Loan in amounts of not less than ONE MILLION AND NO/100 DOLLARS
($1,000,000.00) in accordance with the terms of the Note.  The Loan shall be
evidenced by a promissory note ("Note", together with this Agreement and all
documents executed in connection with this Agreement, collectively, "Loan
Documents") on the standard form used by Bank for commercial loans.  All
borrowings under the Loan must be made before October 30, 2001 ("Maturity
Date"), at which time all unpaid principal and interest of the Loan shall be due
and payable.  Bank shall enter each amount borrowed and repaid in Bank's records
and such entries shall be deemed to be the amount of the Loan outstanding.
Omission of Bank to make any such entries shall not discharge Borrower of its
obligation to repay in full with interest all amounts borrowed.

1.2  Purpose of Loan.  The proceeds of the Loan shall be used only for general
corporate purposes of Borrower and/or its subsidiary banks (each existing or
hereafter acquired subsidiary of Borrower which is a bank shall be hereafter
referred to as a "Bank Subsidiary").

1.3  Interest.  Interest on the outstanding principal balance of the Loan shall
accrue daily from the date of the first advance until the Maturity Date at a per
annum rate equal to LIBOR plus seventy five basis points (0.75%).  Interest
shall be payable on the first day of each calendar quarter, commencing the first
such date to occur after the first advance under the Loan and continuing through
the Maturity Date, on which date all accrued interest and principal remaining
unpaid shall be due and payable in full.  The Loan may be prepaid in full or in
part only in accordance with the terms of the Note and any such prepayment shall
be subject to the prepayment fee provided for therein.

1.4  Fee.  Borrower shall pay in advance a non-refundable fee of TWENTY-FIVE
THOUSAND AND NO/100 DOLLARS ($25,000.00) on or before the date of execution of
this Agreement, receipt of which is acknowledged by Bank.

1.5  Disbursement.  Upon any borrowing hereunder, Bank shall disburse the
proceeds of the Loan as provided in Bank's standard form authorization executed
by Borrower.

                       ARTICLE 2.  CONDITIONS PRECEDENT

Bank shall not be obligated to disburse all or any portion of the proceeds of
the Loan unless at or prior to the time for the making of such disbursement, the
following conditions have been fulfilled to Bank's satisfaction:

2.1  Compliance.  Borrower shall have performed and complied with all terms and
conditions required by this Agreement to be performed or complied with by it
prior to or at the date of the making of such disbursement and shall have
executed and delivered to Bank the Note and other documents deemed necessary by
Bank.

                                     Page 1
<PAGE>

2.3  Borrowing Resolution.  Borrower shall have provided Bank with certified
copies of resolutions duly adopted by the Board of Directors of Borrower,
authorizing this Agreement and the Loan Documents.  Such resolutions shall also
designate the persons who are authorized to act on Borrower's behalf in
connection with this Agreement and to do the things required of Borrower
pursuant to this Agreement.

2.4  Continuing Compliance.  At the time any disbursement is to be made, there
shall not exist any event, condition or act which constitutes an event of
default under Article 6 hereof or any event, condition or act which with notice,
lapse of time or both would constitute such event of default; nor shall there be
any such event, condition, or act immediately after the disbursement were it to
be made.

                  ARTICLE 3.  REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants that:

3.1  Business Activity.  The principal business of Borrower is that of a bank
holding company.

3.2  Affiliates and Subsidiaries.  Borrower's affiliates and subsidiaries (those
entities in which Borrower has either a controlling interest or at least a 25%
ownership interest) and their addresses are as provided on a schedule delivered
to Bank on or before the date of this Agreement.

3.3  Authority to Borrow.  The execution, delivery and performance of this
Agreement, the Note and all other agreements and instruments required by Bank in
connection with the Loan are not in contravention of any of the terms of any
indenture, agreement or undertaking to which Borrower is a party or by which it
or any of its property is bound or affected.

3.4  Financial Statements.  The financial statements of Borrower, including both
a balance sheet at December 31, 1999, together with supporting schedules, and an
income statement for the twelve (12) months then ended, have heretofore been
furnished to Bank, and are true and complete and fairly represent the financial
condition of Borrower during the period covered thereby, and since that date
there has been no material adverse change in the financial condition or
operations of Borrower.

3.5  Title.  Except for assets which may have been disposed of in the ordinary
course of business, Borrower has good and marketable title to all of the
property reflected in its financial statements delivered to Bank and to all
property acquired by Borrower since the date of said financial statements, free
and clear of all material liens, encumbrances, security interests and adverse
claims except those specifically referred to in said financial statements.

3.6  Litigation.  There is no litigation or proceeding pending or, to its
knowledge threatened against Borrower or any of its property which is reasonably
likely to (a) affect the financial condition, property or business of Borrower
in a materially adverse manner or (b) result in liability in excess of
Borrower's insurance coverage.

3.7  Default.  Borrower is not now in default in the payment of any of its
material obligations, and there exists no event, condition or act which
constitutes an event of default under Article 6 hereof and no condition, event
or act which with notice or lapse of time, or both, would constitute an event of
default.

                                     Page 2
<PAGE>

3.8  Organization.  Borrower is duly organized and existing under the laws of
the State of California, and has the power and authority to carry on the
business in which it is engaged and/or proposes to engage.

3.9  Power.  Borrower has the power and authority to enter into this Agreement
and to execute and deliver the Note and all of the other Loan Documents.

3.10  Authorization.  This Agreement and all things required by this Agreement
have been duly authorized by all requisite action of Borrower.

3.11  Qualification.  Borrower is duly qualified and in good standing in any
jurisdiction where such qualification is required.

3.12  Compliance with Laws.  Borrower is not in violation with respect to any
applicable laws, rules, ordinances or regulations which materially affect the
operations or financial condition of Borrower.

3.13  ERISA.  Any defined benefit pension plans as defined in the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), of Borrower meet,
as of the date hereof, the minimum funding standards of Section 302 of ERISA,
and no Reportable Event or Prohibited Transaction as defined in ERISA has
occurred with respect to any such plan.

3.14  Regulation U.  No action has been taken or is currently planned by
Borrower, or any agent acting on its behalf, which would cause this Agreement or
the Note to violate Regulation U or any other regulation of the Board of
Governors of the Federal Reserve System or to violate the Securities and
Exchange Act of 1934, in each case as in effect now or as the same may hereafter
be in effect.  Borrower is not engaged in the business of extending credit for
the purpose of purchasing or carrying margin stock as one of its important
activities and none of the proceeds of the Loan will be used directly or
indirectly for such purpose.

3.15  Wells Fargo Agreement.  Borrower hereby confirms that Borrower is in
compliance with all terms and conditions of that certain Letter Revolving Line
of Credit Agreement dated November 4, 1999, between Wells Fargo Bank, National
Association ("Wells Fargo") and Borrower ("Wells Fargo Agreement"); and further
certifies that, as of the date of this Agreement, there exists no event of
default as defined in the Wells Fargo Agreement, nor any condition, act or event
which with the giving of notice or the passage of time or both would constitute
an event of default under the Wells Fargo Agreement.

3.16  Continuing Representations.  These representations shall be considered to
have been made again at and as of the date of each disbursement of the Loan and
shall be true and correct as of such date or dates.

                       ARTICLE 4.  AFFIRMATIVE COVENANTS

Until the Note and all sums payable pursuant to this or any other of the Loan
Documents have been paid in full, unless Bank waives compliance in writing,
Borrower agrees that Borrower will:

4.1  Use of Proceeds.  Use the proceeds of the Loan only as provided in Section
1.2 above.

4.2  Payment of Obligations.  Pay and discharge promptly all taxes, assessments
and other governmental charges and claims levied or imposed upon it or its
property, or any part thereof, provided, however, that Borrower shall have the
right in good faith to contest any such taxes, assessments, charges or claims
and, pending the outcome of such contest, to delay or refuse

                                     Page 3
<PAGE>

payment thereof provided that adequately funded reserves are established by it
to pay and discharge any such taxes, assessments, charges and claims.

4.3  Maintenance of Existence.  Maintain and preserve its existence and assets
and all rights, franchises, licenses and other authority necessary for the
conduct of its business in all material respects and will maintain and preserve
its property, equipment and facilities in good order, condition and repair.
Upon reasonable prior written notice to Borrower, Bank may, at reasonable times,
visit and inspect any of the properties of Borrower.

4.4  Records.  Keep and maintain full and accurate accounts and records of its
operations according to regulatory and generally accepted accounting principles
and upon reasonable prior written notice will permit Bank to have access
thereto, to make examination and photocopies thereof, and to make audits during
regular business hours.

4.5  Information Furnished.  Furnish to Bank, in form and substance reasonably
satisfactory to Bank:

     (a) Within fifty (50) days after the close of each fiscal quarter of each
     fiscal year, its unaudited consolidated balance sheet as of the close of
     such fiscal quarter, its unaudited consolidated income and expense
     statement with year-to-date totals and supportive schedules, and its
     consolidated statement of retained earnings and cash flows for that fiscal
     quarter, all prepared in accordance with generally accepted accounting
     principles consistently applied and used consistently with prior practices
     ("GAAP").

     (b) Within ninety five (95) days after the close of each fiscal year, a
     copy of its statement of financial condition including at least its
     consolidated balance sheet as of the close of such fiscal year and its
     consolidated income and expense statement, and its consolidated retained
     earnings and cash flows statement for such fiscal year, examined and
     prepared on an audited basis by independent certified public accountants
     selected by Borrower and reasonably satisfactory to Bank, in accordance
     with GAAP along with any management letter provided by such accountants.

     (c) As soon as available, copies of such financial statements and reports
     as Borrower may file with any state or federal agency.

     (d) Within (i) fifty (50) days after the close of each fiscal quarter; and
     (ii) ninety five (95) days after the close of each fiscal year, a
     certification of compliance with all covenants under this Agreement,
     executed by Borrower's duly authorized officer, in form acceptable to Bank.

     (e) Prompt written notice to Bank of any Event of Default or breach under
     any of the terms or provisions of this Agreement or any other Loan
     Document, any litigation which would have a material adverse effect on
     Borrower's financial condition, and any other matter which has resulted in,
     or is likely to result in, a material adverse change in Borrower's
     financial condition or operations.

     (f) Within fifteen (15) days after Borrower knows or has reason to know
     that any Reportable Event or Prohibited Transaction (as defined in ERISA)
     has occurred with respect to any defined benefit pension plan of Borrower,
     a statement of an authorized officer of Borrower describing such event or
     condition and the action, if any, which Borrower proposes to take with
     respect thereto.

     (g) Such other financial statements and information as Bank may reasonably
     request from time to time.

                                     Page 4
<PAGE>

4.6  Financial Condition.  Maintain Borrower's financial condition (or with
respect to subparagraph (c) below, cause all of Borrower's subsidiaries or Bank
Subsidiaries (as applicable) to maintain their combined financial condition) as
follows using GAAP (except to the extent modified by the definitions herein),
with compliance determined commencing with Borrower's financial statements for
the period ending June 30, 2000:

     (a) Double Leverage Ratio not at any time greater than 1.50 to 1.0
     determined as of the end of each fiscal quarter.  "Double Leverage Ratio"
     means the ratio of (i) Borrower's equity investment in all its
     subsidiaries, to (ii) Borrower's equity.

     (b) On a consolidated basis (and cause each Bank Subsidiary to maintain) a
     capital ratio sufficient to be rated "well capitalized" by the Federal
     Reserve Board, Federal Deposit Insurance Corporation and each other federal
     or state regulatory entity or agency which has jurisdiction over Borrower
     or any Bank Subsidiary which maintains such a rating system; provided,
     however, that in the event Borrower acquires a Bank Subsidiary after the
     date of this Agreement which is not "well capitalized" at the time of such
     acquisition, Borrower shall cause such Bank Subsidiary to become "well
     capitalized" within six (6) months following such acquisition.

     (c) Consolidated net income after taxes of not less than $1.00, determined
     as of each fiscal quarter end on a rolling four (4) quarter basis.
     Consolidated herein refers to Borrower and all of its subsidiaries.

4.7  Notices to Bank.  Promptly give written notice to Bank of:

     (a) Any litigation or administrative or regulatory proceeding in which
     Borrower is named as a party where the amount claimed against Borrower is
     $1,000,000.00 or more, or where the granting of the relief requested would
     have a material adverse effect on Borrower's financial condition.

     (b) Any formal enforcement action taken by a governmental or regulatory
     agency or, to the knowledge of Borrower, proposed to be taken against
     Borrower and any of its subsidiaries.

     (c) Any event of default by Borrower under any of the terms or provisions
     of this Agreement or of any other agreement, contract, document or
     instrument entered, or to be entered into with Bank.

     (d) Any material event of default under any terms of the Wells Fargo
     Agreement.

     (e) Any material amendment, modification, extension, restatement or
     termination of the Wells Fargo Agreement.

     (f) Any other matter which has resulted in, or is likely to result in, a
     material adverse change in its financial condition or operations.

4.8  Reports Under Pension Plans.  Furnish to Bank, as soon as possible and in
any event within 15 days after Borrower knows or has reason to know of:

     (a) Occurrence of any reportable event under Section 4043(b) of ERISA for
     with the PBGC requires 30 days' notice.  "PBGC" means the Pension Benefit
     Guaranty Corporation or any successor thereto established under ERISA.

                                     Page 5
<PAGE>

      (b) Any action by Borrower to terminate or withdraw from a Plan or the
      filing of any notice of intent to terminate under Section 4041 of ERISA.
      "Plan" means any employee benefit plan of the Borrower subject to ERISA.

      (c) Any notice of noncompliance made with respect to a Plan under Section
      4041(b) of ERISA.

      (d) The commencement of any proceeding with respect to a Plan under
      Section 4041(b) of ERISA.

4.9   Insurance.  Keep all of its insurable property, real, personal or mixed,
insured by good and responsible companies against fire and such other risks as
are customarily insured against by companies conducting similar business with
respect to like properties.  Borrower will maintain adequate worker's
compensation insurance and adequate insurance against liability for damages to
persons and property.  Promptly upon request of Bank, deliver to Bank a copy of
each insurance policy, or, if permitted by Bank, a certificate of insurance
listing all insurance in force.

4.10  Additional Requirements.  Promptly, upon demand by Bank, take such further
action and execute all such additional documents and instruments in connection
with this Agreement as Bank in its reasonable discretion deems necessary, and
promptly supply Bank with such other information concerning its affairs as Bank
may request from time to time.

4.11  Litigation and Attorneys' Fees.  Pay promptly to Bank upon demand,
reasonable attorneys' fees (including but not limited to the reasonable estimate
of the allocated costs and expenses of in-house legal counsel and legal staff)
and all costs and other expenses paid or incurred by Bank in collecting,
modifying or compromising the Loan or in enforcing or exercising its rights or
remedies created by, connected with or provided for in this Agreement or any of
the Loan Documents, whether or not an arbitration, judicial action or other
proceeding is commenced.  If such proceeding is commenced, only the prevailing
party shall be entitled to attorneys' fees and court costs.

                        ARTICLE 5.  NEGATIVE COVENANTS

Until the Note and all other sums payable pursuant to this Agreement or any
other of the Loan Documents have been paid in full, unless Bank waives
compliance in writing, Borrower agrees that Borrower will not:

5.1   Encumbrances and Liens.  Create, assume or suffer to exist any mortgage,
pledge, security interest, encumbrance, or lien (other than for taxes not
delinquent and for taxes and other items being contested in good faith) on
property of any kind, whether real, personal or mixed, now owned or hereafter
acquired, or upon the income or profits thereof ("Liens"), except:

      (a) Deeds of Trust and security agreements in favor of Bank.

      (b) Liens for taxes not yet due.

      (c) Liens outstanding on the date of this Agreement disclosed in writing
      to Bank.

      (d) Liens on any securities of the U. S. government (including any agency
      thereof).

      (e) Liens in connection with indebtedness permitted pursuant to Section
      5.2(e).

                                     Page 6
<PAGE>

     (f)  Liens which are not material or do not materially interfere with the
     conduct of Borrower's business.

     5.2  Other Debts.  Create, incur, assume or permit to exist any
     indebtedness or liabilities resulting from borrowings, loans or advances,
     whether secured or unsecured, matured or unmatured, liquidated or
     unliquidated, joint or several, except (a) the liabilities of Borrower to
     Bank, (b) any other liabilities of Borrower and any subsidiaries existing
     as of, and disclosed to Bank prior to, the date hereof, (c) unsecured and
     uncommitted operating lines of credit, such as daylight overdraft
     facilities and Fed Funds lines and the like, (d) other debts, lines of
     credit and leases such as the Wells Fargo Agreement (expected to be
     increased to $40,000,000) and a similar facility with First Union National
     Bank, (e) other unsecured loans and lines of credit in an aggregate amount
     not to exceed, on a consolidated basis, 50% of Borrower's consolidated
     equity preceding the incurring of such indebtedness, and (f) additional
     unsecured liabilities which are subordinated to the obligations of Borrower
     to Bank pursuant to agreements in form and content acceptable to Bank;
     provided that the indebtedness described in clauses (b), (c), (d) and (e)
     shall not be prior or senior in right of payment to the obligations of
     Borrower to Bank.

5.3  Sale of Assets, Liquidation or Merger.  Merge into or consolidate with any
other entity unless Borrower is the surviving entity; nor make any substantial
change in the nature of Borrower's business as conducted as of the date hereof
or as is permitted for a bank holding company or financial holding company by
the applicable regulations and interpretations of the Board of Governors of the
Federal Reserve system; nor sell, lease, transfer or otherwise dispose of all or
a substantial or material portion of Borrower's assets except in the ordinary
course of business.

5.4  Other Business.  Engage in any business activities other than that
permitted for a financial holding company or a bank holding company under the
applicable regulations and interpretations of the Board of Governors of the
Federal Reserve Board.

                         ARTICLE 6.  EVENTS OF DEFAULT

The occurrence of any of the following events ("Events of Default") shall
terminate any obligation on the part of Bank to make or continue the Loan and
automatically, unless otherwise provided under the Note, shall make all sums of
interest and principal and any other amounts owing under the Loan immediately
due and payable, without notice of default, presentment or demand for payment,
protest or notice of nonpayment or dishonor, or any other notices or demands:

     (a) Borrower shall default in the due and punctual payment of the principal
     of or the interest on the Note or any of the other Loan Documents, and a
     period of five (5) calendar days shall have elapsed thereafter; provided,
     however, with respect to interest, no Event of Default shall be deemed to
     have occurred if same is paid later than the fifth day after the applicable
     due date but within thirty (30) days after the applicable due date no more
     than two times during the term of the Loan.

     (b) Any representation or warranty made, or financial statement,
     certificate or other document provided, by Borrower shall prove to have
     been materially false or misleading when made.

     (c) Borrower shall default in the due performance or observance of any
     covenant or condition of the Loan Documents, and the same is not cured
     within 30 days after the

                                     Page 7
<PAGE>

     date Borrower knew or through the use of reasonable diligence should have
     known thereof; or Borrower shall fail to pay its debts generally as they
     become due or shall file any petition or action for relief under any
     bankruptcy, insolvency, reorganization, moratorium, creditor composition
     law, or any other law for the relief of or relating to debtors; an
     involuntary petition shall be filed under any bankruptcy law against
     Borrower, and the same is not dismissed within 60 days of such filing; or a
     custodian, receiver, trustee, assignee for the benefit of creditors, or
     other similar official, shall be appointed to take possession, custody or
     control of the properties of Borrower; or the dissolution or termination of
     the business of Borrower.

     (d) Borrower shall fail to perform in any material respect with respect to
     payment under any other agreement involving the borrowing of money, the
     purchase of property, the advance of credit or any other monetary liability
     of any kind in which the amount involved exceeds $1,000,000.00.

     (e) A material event of default by Borrower shall occur and be continuing
     under the Wells Fargo Agreement.

     (f) Any governmental or regulatory authority shall take any formal
     enforcement action against Borrower, or any other event shall occur, which
     would have a material adverse effect on the financial condition or business
     of Borrower.

     (g) Any judgment(s) in excess of $1,000,000.00 shall be entered against
     Borrower, or any involuntary lien(s) of any kind or character shall attach
     to any assets or property of Borrower having a book value in excess of
     $1,000,000.00 which has not been bonded or released within 60 days.

     (h) Any Plan shall be terminated pursuant to ERISA, a trustee shall be
     appointed by the appropriate United States District Court to administer any
     Plan, the PBGC shall institute proceedings to terminate any Plan, or any
     Plan shall fail to satisfy the minimum funding standard for such Plan for a
     plan year as established by the Internal Revenue Code, as amended from time
     to time.

                     ARTICLE 7.  MISCELLANEOUS PROVISIONS

7.1  Additional Remedies.  The rights, powers and remedies given to Bank
hereunder shall be cumulative and not alternative and shall be in addition to
all rights, powers and remedies given to Bank by law against Borrower or any
other person, including but not limited to Bank's rights of setoff or banker's
lien.

7.2  Nonwaiver.  Any forbearance or failure or delay by Bank in exercising any
right, power or remedy hereunder shall not be deemed a waiver thereof and any
single or partial exercise of any right, power or remedy shall not preclude the
further exercise thereof.  No waiver shall be effective unless it is in writing
and signed by an officer of Bank.

7.3  Inurement.  The benefits of this Agreement shall inure to the successors
and assigns of Bank and the permitted successors and assignees of Borrower, and
any assignment of Borrower without Bank's consent shall be null and void.

7.4  Severability.  Should any one or more provisions of this Agreement be
determined to be illegal or unenforceable, all other provisions nevertheless
shall be effective.

7.5  Construction.  The section and subsection headings herein are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                                     Page 8
<PAGE>

7.6   Amendments.  This Agreement may be amended only in writing signed by all
parties hereto.

7.7   Counterparts.  Borrower and Bank may execute one or more counterparts to
this Agreement, each of which shall be deemed an original.

7.8   Notices.  Any notices or other communications provided for or allowed
hereunder shall be effective only when given by one of the following methods and
addressed to the respective party at its address given with the signatures at
the end of this Agreement and shall be considered to have been validly given:
(a) upon delivery, if delivered personally; (b) upon receipt, if mailed, first
class postage prepaid, with the United States Postal Service; (c) on the next
business day, if sent by overnight courier service of recognized standing; and
(d) upon telephoned confirmation of receipt, if telecopied.  The addresses to
which notices or demands are to be given may be changed from time to time by
notice delivered as provided above.

7.9   Applicable Law.  This Agreement and all other agreements and instruments
required by Bank in connection therewith shall be governed by and construed
according to the laws of the State of California.  This Agreement hereby
incorporates any alternative dispute resolution agreement concurrently or
hereafter executed between Borrower and Bank.

7.10  Integration Clause.  Except for documents and instruments specifically
referenced herein, this Agreement constitutes the entire agreement between Bank
and Borrower regarding the Loan and all prior communications verbal or written
between Borrower and Bank shall be of no further effect or evidentiary value.

                                     Page 9
<PAGE>

THIS AGREEMENT is executed on behalf of the parties by duly authorized officers
as of the date first above written.

GREATER BAY BANCORP,                           UNION BANK OF CALIFORNIA, N. A.
a California corporation

By: /s/ Steven C. Smith                        By: /s/ Dennis A. Cattell

Title: EVP, CFO & CAO                          Title: Vice President

By: Kamran F. Husain

Title: SVP, Finance & Risk Management

ADDRESS FOR NOTICE:                        ADDRESS FOR NOTICE:
2860 West Bayshore Road                    445 South Figueroa Street, 13th Flr
Palo Alto, California 94303                Los Angeles, California 90071-1601
Attn: Kamran F. Husain                     Attn: William McGill
Senior Vice President                      Senior Vice President
Telephone No. (650) 813-8200               Telephone No. (213) 236-5009
FAX No. (650) 494-9193                     FAX No. (213) 236-5548

                                    Page 10
<PAGE>

                                     NOTE
                                  (BASE RATE)

================================================================================
Borrower Name  GREATER BAY BANCORP

--------------------------------------------------------------------------------
Borrower Address                        Office                   Loan Number
     2860 West Bayshore Road            Risk Management Dept
     Palo Alto, California 94303        __________________       _______________
                                        Maturity Date            Amount
                                        October 30 2001          $25,000,000.00
================================================================================

$25,000,000.00                                             November 1, 2000

FOR VALUE RECEIVED, on October 30, 2001("Maturity Date"), the undersigned
("Borrower") promises to pay to the order of UNION BANK OF CALIFORNIA, N.A.
("Bank"), as indicated below, the principal sum of TWENTY FIVE MILLION AND
NO/100 DOLLARS ($25,000,000.00), or so much thereof as is disbursed and
outstanding from time to time in accordance with the terms and conditions of
that certain Loan Agreement between Borrower and Bank dated as of November 1,
2000 (as amended, supplemented, extended, restated, or renewed from time to
time, "Agreement"), together with interest on the balance of such principal from
time to time outstanding, at the per annum rate or rates and at the times set
forth below.  All computations of interest under this Note shall be made on the
basis of a year of 360 days, for actual days elapsed.

At any time prior to the Maturity Date, subject to the provisions of the
Agreement, below, of this Note, Borrower may borrow, repay and reborrow hereon
so long as the total outstanding at any one time does not exceed the principal
amount of this Note.

1.   Payment.  Borrower shall pay interest on the first day of each calendar
quarter, commencing the first such date to occur after the first advance under
this Note.  Should interest not be paid when due, it shall become part of the
principal and bear interest as herein provided.  On the Maturity Date, all
principal and interest then unpaid shall be due and payable.

Borrower shall pay all amounts due under this Note in lawful money of the United
States at Bank's Risk Management Department, or such other office as may be
designated by Bank, from time to time.

1.1  Base Interest Rate.  Amounts outstanding hereunder in increments of at
least ONE MILLION AND NO/100 DOLLARS ($1,000,000.00) shall bear interest at a
rate, based on an index, which is seventy five (75) basis points per annum in
excess of Bank's LIBOR Rate for the Interest Period selected by Borrower, in
each case acceptable to Bank.

No Base Interest Rate may be changed, altered or otherwise modified until the
expiration of the Interest Period selected by Borrower.  The exercise of
interest rate options by Borrower shall be as recorded in Bank's records, which
records shall be prima facie evidence of the amount borrowed under either
interest option and the interest rate; provided, however, that failure of Bank
to make any such notation in its records shall not discharge Borrower from its
obligations to repay in full with interest all amounts borrowed. In no event
shall any Interest Period extend beyond the maturity date of this Note.

To exercise this option, Borrower may, from time to time with respect to
principal outstanding on which a Base Interest Rate is not accruing, and on the
expiration of any Interest Period with respect to principal outstanding on which
a Base Interest Rate has been accruing, select an

                                    Page 1
<PAGE>

index offered by Bank for a Base Interest Rate Loan and an Interest Period by
telephoning an authorized lending officer of Bank located at the banking office
identified below prior to 10:00 a.m., Pacific time, on any Business Day and
advising that officer of the selected index, the Interest Period and the
Origination Date selected (which Origination Date, for a Base Interest Rate Loan
based on the LIBOR Rate, shall follow the date of such selection by no more than
two (2) Business Days).

Bank will mail a written confirmation of the terms of the selection to Borrower
promptly after the election is made. Failure to send such confirmation shall not
affect Bank's rights to collect interest at the rate selected. If, on the date
of the selection, the index selected is unavailable for any reason, the
selection shall be void. Bank reserves the right to fund the principal from any
source of funds notwithstanding any Base Interest Rate selected by Borrower but
such source shall not affect the applicability of the Base Interest Rate if
selected by Borrower.

1.2  Variable Interest Rate.   All principal outstanding hereunder which is not
bearing interest at a Base Interest Rate shall bear interest at a rate per annum
equal to the Reference Rate, which rate shall vary as and when the Reference
Rate changes.

2.   Interest Rate Following Default.  In the event of default, at the option of
Bank, and, to the extent permitted by law, interest shall be payable on the
outstanding principal under this Note at a per annum rate equal to five percent
(5.0%) in excess of the Reference Rate, calculated from the date of default
until all amounts payable under this Note are paid in full.

3.   Prepayment

     (a)  Amounts outstanding under this Note bearing interest at a rate based
     on the Reference Rate may be prepaid in whole or in part at any time,
     without penalty or premium. Borrower may prepay amounts outstanding under
     this Note bearing interest at a Base Interest Rate in whole or in part at
     the end of any Interest Period provided Borrower has given Bank not less
     than five (5) Business Days prior written notice of Borrower's intention to
     make such prepayment and pays to Bank the liquidated damages due as a
     result. Liquidated Damages shall also be paid, if Bank, for any other
     reason, including acceleration or foreclosure, receives all or any portion
     of principal bearing interest at a Base Interest Rate prior to the end of
     the applicable Interest Period. Liquidated Damages shall be an amount equal
     to the present value of the product of: (i) the difference (but not less
     than zero) between (a) the Base Interest Rate applicable to the principal
     amount which is being prepaid, and (b) the return which Bank could obtain
     if it used the amount of such prepayment of principal to purchase at bid
     price regularly quoted securities issued by the United States having a
     maturity date most closely coinciding with the relevant Base Rate Maturity
     Date and such securities were held by Bank until the relevant Base Rate
     Maturity Date ("Yield Rate"); (ii) a fraction, the numerator of which is
     the number of days in the period between the date of prepayment and the
     relevant Base Rate Maturity Date and the denominator of which is 360; and
     (iii) the amount of the principal so prepaid (except in the event that
     principal payments are required and have been made as scheduled under the
     terms of the Base Interest Rate Loan being prepaid, then an amount equal to
     the lesser of (A) the amount prepaid or (B) 50% of the sum of (1) the
     amount prepaid and (2) the amount of principal scheduled under the terms of
     the Base Interest Rate Loan being prepaid to be outstanding at the relevant
     Base Rate Maturity Date). Present value under this Note is determined by
     discounting the above product to present value using the Yield Rate as the
     annual discount factor.

     (b)  In no event shall Bank be obligated to make any payment or refund to
     Borrower, nor shall Borrower be entitled to any setoff or other claim
     against Bank, should the return

                                    Page 2
<PAGE>

     which Bank could obtain under this prepayment formula exceed the interest
     that Bank would have received if no prepayment had occurred. All
     prepayments shall include payment of accrued interest on the principal
     amount so prepaid and shall be applied to payment of interest before
     application to principal. A determination by Bank as to the prepayment fee
     amount, if any, shall be conclusive absent manifest error.

     (c)  Bank shall provide Borrower a statement of the amount payable on
     account of prepayment.  Borrower acknowledges that (i) Bank establishes a
     Base Interest Rate upon the understanding that it apply to the Base
     Interest Rate Loan for the entire Interest Period, and any prepayment prior
     to the end of an Interest Period may result in Bank incurring additional
     costs, expenses or liabilities; and Borrower agrees to pay these Liquidated
     Damages as a reasonable estimate of the costs, expenses and liabilities of
     Bank associated with such prepayment prior to the end of an Interest
     Period.

4.   Default and Acceleration of Time for Payment.  The occurrence of any Event
of Default as defined in the Agreement shall (a) terminate any obligation of
Bank to make or continue the Loan; and shall (b) at Bank's option, make all sums
of interest, principal and any other amounts owing under any Loan Document due
and payable (in accordance with the terms of the Agreement) without notice of
default, presentment or demand for payment, protest or notice of nonpayment or
dishonor or any other notices or demands; and (c) give Bank the right to
exercise any other right or remedy provided by contract or applicable law.

5.   Additional Agreements of Borrower. If any amounts owing under this Note are
not paid when due, Borrower promises to pay all costs and expenses, including
reasonable attorneys' fees, incurred by Bank in the collection or enforcement of
this Note. Borrower and any endorser of this Note, for the maximum period of
time and the full extent permitted by law, (a) waive diligence, presentment,
demand, notice of nonpayment, protest, notice of protest, and notice of every
kind; (b) waive the right to assert the defense of any statute of limitations to
any debt or obligation hereunder; and (c) consent to renewals and extensions of
time for the payment of any amounts due under this Note. The receipt of any
check or other item of payment by Bank, at its option, shall not be considered a
payment on account until such check or other item of payment is honored when
presented for payment at the drawee bank. Bank may delay the credit of such
payment based upon Bank's schedule of funds availability, and interest under
this Note shall accrue until the funds are deemed collected. In any action
brought under or arising out of this Note, Borrower and any Obligor, including
their successors and assigns, hereby consent to the jurisdiction of any
competent court within the State of California, as provided in any alternative
dispute resolution agreement executed between Borrower and Bank, and consent to
service of process by any means authorized by said state's law. The term "Bank"
includes, without limitation, any holder of this Note. This Note shall be
construed in accordance with and governed by the laws of the State of
California. This Note hereby incorporates any alternative dispute resolution
agreement concurrently or hereafter executed between Borrower and Bank.

6.   Definitions.  As used herein, the following terms shall have the meanings
respectively set forth below:  "Base Interest Rate" means a rate of interest
based on the LIBOR Rate.  "Base Interest Rate Loan" means amounts outstanding
under this Note that bear interest at a Base Interest Rate.  "Base Rate Maturity
Date" means the last day of the Interest Period with respect to principal
outstanding under a Base Interest Rate Loan.  "Business Day" means a day on
which Bank is open for business for the funding of corporate loans, and, with
respect to the rate of interest based on the LIBOR Rate, on which dealings in
U.S. dollar deposits outside of the United States may be carried on by Bank.
"Interest Period" means with respect to funds bearing interest at a rate based
on the LIBOR Rate, any calendar period of one, two or three month period.  In
determining an Interest Period, a month means a period that starts on one
Business Day in a month and ends on and includes the day preceding the
numerically

                                    Page 3
<PAGE>

corresponding day in the next month. For any month in which there is no such
numerically corresponding day, then as to that month, such day shall be deemed
to be the last calendar day of such month. Any Interest Period which would
otherwise end on a non-Business Day shall end on the next succeeding Business
Day unless that is the first day of a month, in which event such Interest Period
shall end on the next preceding Business Day. "LIBOR Rate" means a per annum
rate of interest (rounded upward, if necessary, to the nearest 1/100 of 1%) at
which dollar deposits, in immediately available funds and in lawful money of the
United States would be offered to Bank, outside of the United States, for a term
coinciding with the Interest Period selected by Borrower and for an amount equal
to the amount of principal covered by Borrower's interest rate selection, plus
Bank's costs, including the cost, if any, of reserve requirements. "Origination
Date" means the first day of the Interest Period. "Reference Rate" means the
rate announced by Bank from time to time at its corporate headquarters as its
"Reference Rate." The Reference Rate is an index rate determined by Bank from
time to time as a means of pricing certain extensions of credit and is neither
directly tied to any external rate of interest or index nor necessarily the
lowest rate of interest charged by Bank at any given time.

This Note is the Note defined in the Agreement and is subject to the terms and
conditions contained therein.  All capitalized terms not otherwise defined in
this Note shall have the meaning ascribed to them in the Agreement.

GREATER BAY BANCORP,
a California corporation

By: /s/ Steven C. Smith

Title: EVP, CFO & CAO

By: /s/ Kamran F. Husain

Title: SVP, Finance & Risk Management

                                    Page 4

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