Document:

Exhibit 10.7.2

 

Form of InfraSource Services, Inc.

2004 Omnibus Stock Incentive Plan Non-Qualified Stock Option Agreement

for senior management and directors

 

This
NON-QUALIFIED STOCK OPTION AGREEMENT (this “Option Agreement”), dated of the _____
day of ______, 20__  (the “Date of Grant”),
is by and between InfraSource Services, Inc., a Delaware corporation (the “Company”),
and _______ (the “Optionee”).

 

Pursuant
to the Company’s 2004 Omnibus Stock Incentive Plan (the “Plan”), the Board of
Directors of the Company (the “Board”), as the Administrator of the Plan, has
determined that the Optionee is to be granted an option (the “Option”) to
purchase Shares of the Company’s Common Stock on the terms and conditions set
forth herein, and hereby grants such Option. 
The Option is not intended to constitute an “incentive
stock option” within the meaning of Section 422 of the Internal Revenue Code of
1986, as amended (the “Code”).

 

Any
capitalized terms not defined herein shall have their respective meanings set
forth in the Plan.

 

1.             Number of Shares.  The Option entitles the Optionee to purchase __________
shares of the Company’s Common Stock (the “Option Shares”) at a price of $_______
per share (the “Option Exercise Price”).

 

2.             Option Term.  The term of the Option and of this Option
Agreement (the “Option Term”) shall commence on the Date of Grant and, unless
the Option is otherwise terminated pursuant to this Option Agreement, shall
terminate upon the tenth anniversary of the Date of Grant (the “Expiration Date”).  In no event may the Option be exercised after
expiration of the Option Term.

 

3.             Vesting; Conditions of Exercise.

 

(a)           Subject to Section 7, the Option
shall vest as to twenty-five percent (25%) of the Option Shares on each of the
first four anniversaries of the Date of Grant [following
for directors][; provided that, in the event of a Change of
Control Transaction (as defined below) of the Company, the Option shall become
immediately vested with respect to all Option Shares if each of the OCM/GFI
Power Opportunities Fund LP (“GFI”) and the OCM Principal Opportunities Fund II
LP (“OCM”) has achieved at least a twenty-five percent (25%) internal rate of
return.]

 

(b)           Except as otherwise provided herein,
the right of the Optionee to purchase Shares with respect to which this Option
has become exercisable may be exercised in whole or in part at any time or from
time to time prior to expiration of the Option Term; provided, however,
that the Option may not be exercised for a fraction of a share.

 

 

(c)           Definitions.

 

[following for directors]  [(i) For purposes of this Agreement, “Cause”
shall mean (A) the continued failure by Optionee to substantially perform his
duties with the Company or any Parent or Subsidiary or (B) the willful engaging
by Optionee in gross misconduct materially and demonstrably injurious to the
Company or any Parent or Subsidiary

 

(ii)           For purposes of this Agreement, “Change
of Control Transaction” shall have the meaning set forth in the Stockholders’
Agreement by and among the Company and certain of its stockholders, dated as of
September 24, 2003 (the “Stockholders’ Agreement”).]

 

[following for senior management]  [(i)  For purposes of this Agreement, “Cause”
shall have the meaning set forth in the Optionee’s employment agreement with the
Company or any Parent or Subsidiary, or if Optionee is not subject to any such
agreement, “Cause” shall mean (i) the continued failure by Optionee to
substantially perform his duties with the Company or any Parent or Subsidiary
or (ii) the willful engaging by Optionee in gross misconduct materially and
demonstrably injurious to the Company or any Parent or Subsidiary.

 

(ii)           For purposes of this Agreement, “Good
Reason” shall have the meaning set forth in the Optionee’s employment agreement
with the Company or any Parent or Subsidiary, or if Optionee is not subject to
any such agreement, “Good Reason” shall mean the Company’s material reduction
of the Optionee’s compensation or duties and responsibilities (without Optionee’s
express written consent); provided, that Optionee has provided the
Company of written notice of the material breach and the Company does not cure
such breach within 15 days following the date Optionee provides notice thereof
to the Company.

 

(iii)          For purposes of this Agreement, “Change
in Control Period” means the [twenty-four] month period commencing on the
occurrence of a Change in Control.

 

(iv)          For purposes of this Agreement, “Change
in Control” means a transaction or series of transactions resulting in any
person or entity other than (x) Infrasource (or its subsidiaries), (y) the
OCM/GFI Power Opportunities Fund LP, or (z) the OCM Principal Opportunities
Fund II LP (or any combination of (x), (y) or (z), holding more than 50% of the
Company’s voting stock or any sale exchange or other disposition of all or
substantially all of the Company’s business or assets.]

 

4.            Adjustments.  The Option and all rights and obligations
under this Agreement are subject to Section 3 of the Plan, the terms of which
are incorporated herein by this reference.

 

5.            Nontransferability
of Options.   Except by will or under
the laws of descent and distribution, the Option and this Option Agreement
shall not be transferable and, during the lifetime of Optionee, the Option may
be exercised only by Optionee; provided, however, that

 

2

 

Optionee
shall be permitted to transfer this Option to a trust, partnership, limited
liability company or corporation (or other entity approved by the Administrator
in its sole discretion) controlled by the Optionee during the Optionee’s
lifetime for the benefit of Optionee’s immediate family (the “Trust”) by
providing written notice of transfer to the Company in a form provided by the
Company.  Without limiting the generality
of the foregoing, except as otherwise provided herein, the Option may not be
assigned, transferred, exchanged, mortgaged, pledged, hypothecated, gifted or
otherwise disposed of or encumbered (including, without limitation, by
operation of law) and the Optionee may not agree to do any of the foregoing.  Any attempted assignment, transfer, pledge,
hypothecation or other disposition of the Option contrary to the provisions
hereof, and the levy of any execution, attachment or similar process upon the
Option, shall be null and void and without effect.

 

6.             Method of Exercise of Option.  The Option may be exercised by means of
written notice of exercise to the Company in a form provided by the Company
specifying the number of Option Shares to be purchased, accompanied by payment
in full of the aggregate Option Exercise Price of the Common Stock as to which
such Option shall be exercised and any applicable withholding taxes (i) in cash
or by check, (ii) at the discretion of the Administrator, by means of a
cashless exercise procedure either through a broker or, through withholding of
shares of Common Stock otherwise issuable upon exercise of the Option that have
an aggregate Fair Market Value on the date of surrender in an amount sufficient
to pay the aggregate Option Exercise Price of the Common Stock as to which such
Option shall be exercised and/or the minimum statutory withholding taxes with
respect thereto, (iii) in the form of unrestricted shares of Common Stock
already owned by the Optionee which, (x) in the case of unrestricted shares of
Common Stock acquired upon exercise of an option, have been owned by Optionee
for more than six months on the date of surrender, and (y) have an aggregate
Fair Market Value on the date of surrender equal to the aggregate Option
Exercise Price of the Common Stock as to which such Option shall be exercised
and/or the minimum statutory withholding taxes with respect thereto, or (iv) by
any other means of exercise authorized from time to time in the Plan and/or by
the Board.

 

7.             Effect of Termination of
Employment.  Upon the termination of
Optionee’s employment or service with the Company or any Parent or Subsidiary,
except as provided in this Section 7, the Option shall immediately terminate as
to any Option Shares that have not previously vested as of the date of such
termination (the “Termination Date”).

 

(a)           Termination by the Company for
Cause.  In the event Optionee’s
employment or service with the Company or any Parent or Subsidiary is
terminated by the Company for Cause, the Option shall terminate in full as of
the Termination Date and shall not be exercisable as to any of the Option
Shares.

 

[following for directors] [(b) Termination
as a Result of Death or Disability. 
In the event Optionee’s employment with or service to the Company or any
Parent or Subsidiary is terminated as a result of Optionee’s death or
Disability, any portion of the Option that has vested as of the Termination
Date shall be exercisable in whole or in part for a period of one year
following the Termination Date.  Upon
expiration of such one-year period, any unexercised portion of the Option shall
terminate in full.

 

3

 

(c)           Termination for any other Reason.  Except as set forth in subsections (a) and
(b) above, in the event Optionee’s employment with or service to the Company or
any Parent or Subsidiary is terminated for any reason, any portion of the
Option that has vested as of the Termination Date shall be exercisable in whole
or in part for a period of 30 days following the Termination Date.  Upon expiration of such 30-day period, any
unexercised portion of the Option shall terminate in full.]

 

[following for senior management] [(b)    Termination by the Company without
Cause; Termination for Good Reason. 
In the event Optionee’s employment or service with the Company or any
Parent or Subsidiary is terminated by the Company without Cause or by Optionee
for Good Reason, the Option shall become immediately vested and exercisable
with respect to that number of shares equal to the product of (i) 25% of the
total Option Shares and (ii) the ratio equal to the number of whole months that
have elapsed from the later of (x) the Date of Grant and (y) the last
anniversary of the Date of Grant to the termination date by 12, and the then
vested portion of the Option shall be exercisable in whole or in part for a
period of 90 days following the Termination Date.  Upon expiration of such 90-day period, any
unexercised portion of the Option shall terminate in full.

 

(c)           Termination without Good Reason.  In the event Optionee terminates employment
or service with the Company or any Parent or Subsidiary without Good Reason,
any portion of the Option that has vested as of the Termination Date shall be
exercisable in whole or in part for a period of 30 days following the
Termination Date.  Upon expiration of
such 30-day period, any unexercised portion of the Option shall terminate in
full.

 

(d)           Termination as a Result of Death
or Disability.  In the event Optionee’s
employment or service with the Company or any Parent or Subsidiary is
terminated as a result of Optionee’s death or Disability, any portion of the
Option that has vested as of the Termination Date shall be exercisable in whole
or in part for a period of one year following the Termination Date.  Upon expiration of such one-year period, any
unexercised portion of the Option shall terminate in full.

 

(e)           During a Change in Control Period.  If, during a Change in Control Period, the
Optionee’s employment is terminated by the Company other than for Cause, or by
the Optionee for Good Reason, then immediately upon such termination the Option
shall be vested and exercisable with respect to the greater of (i) that portion
of the Option that has vested as of the Termination Date, or (ii) 50% of the
total Option Shares. The then vested and exercisable portion of the Option
shall be exercisable for a period of 90 days following the Termination Date,
and that portion of the Option that remains unvested shall terminate in full as
of the Termination Date.  Upon expiration
of such 90-day period, any unexercised portion of the Option shall terminate in
full.]

 

8.             Notices.  All notices and other communications under
this Option Agreement shall be in writing and shall be given by facsimile or
first class mail, certified or registered with return receipt requested, and
shall be deemed to have been duly given three days after mailing or 24 hours
after transmission by facsimile to the respective parties named below:

 

4

 

	
  If to Company:

  	
   

  	
  InfraSource Services, Inc.

  
	
   

  	
   

  	
  100 West Sixth Street, Suite 300

  
	
   

  	
   

  	
  Media, PA 19063

  
	
   

  	
   

  	
  Attention: CEO or General Counsel

  
	
   

  	
   

  	
  Facsimile:

  
	
   

  	
   

  	
   

  
	
  If
  to the Optionee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile:

  	
   

  

 

Either
party hereto may change such party’s address for notices by notice duly given
pursuant hereto.

 

9.             Securities Laws Requirements.  The Option shall not be exercisable to any extent,
and the Company shall not be obligated to transfer any Option Shares to the
Optionee upon exercise of such Option, if such exercise, in the opinion of
counsel for the Company, would violate the Securities Act (or any other federal
or state statutes having similar requirements as may be in effect at that
time).

 

10.           Protections Against
Violations of Agreement.  No
purported sale, assignment, mortgage, hypothecation, transfer, pledge,
encumbrance, gift, transfer in trust (voting or other) or other disposition of,
or creation of a security interest in or lien on, any of the Option Shares by
any holder thereof in violation of the provisions of this Option Agreement or
the Certificate of Incorporation or the Bylaws of the Company, will be valid,
and the Company will not transfer any of said Option Shares on its books nor
will any of said Option Shares be entitled to vote, nor will any dividends be
paid thereon, unless and until there has been full compliance with said
provisions to the satisfaction of the Company. 
The foregoing restrictions are in addition to, and not in lieu of any
other, remedies, legal or equitable, available to enforce said provisions.

 

11.           Withholding Requirements.  The Company’s obligations under this Option
Agreement shall be subject to all applicable tax and other withholding
requirements, and the Company shall, to the extent permitted by law, have the
right to deduct any withholding amounts from any payment or transfer of any
kind otherwise due to the Optionee.

 

12.           Successors and Assigns.  All the terms and provisions of this Option
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the respective successors and assigns of the parties hereto, including the
Optionee’s estate, successors and beneficiaries; provided, however, that,
except as otherwise set forth herein, this Option Agreement may not be assigned
by the Optionee without the prior written consent of the Company.

 

13.           Failure to Enforce Not a Waiver.  The failure of either party to enforce at any
time any provision of this Option Agreement shall in no way be construed to be
a waiver of such provision or of any other provision hereof.

 

5

 

14.           Governing Law.  This Option Agreement shall be governed by
and construed according to the laws of the State of Delaware without regard to
its principles of conflict of laws.

 

15.           Incorporation of Plan.  The Plan is hereby incorporated by reference
and made a part hereof, and the Option and this Option Agreement shall be
subject to all terms and conditions of the Plan.

 

16.           Amendments.  This Option Agreement may be amended or
modified at any time only by an instrument in writing signed by each of the
parties hereto.

 

17.           Rights as a Stockholder.  Neither the Optionee nor any of the Optionee’s
successors in interest shall have any rights as a stockholder of the Company
with respect to any shares of Common Stock subject to the Option until the date
of issuance of a stock certificate for such shares of Common Stock.

 

18.           Agreement Not a Contract of
Employment.  Neither the Plan, the
granting of the Option, this Option Agreement nor any other action taken
pursuant to the Plan shall constitute or be evidence of any agreement or
understanding, express or implied, that the Optionee has a right to continue to
provide services as an officer, Board member, employee, consultant or advisor
of the Company or any Parent, Subsidiary or affiliate of the Company for any
period of time or at any specific rate of compensation.

 

19.           Authority of the Board.  The Board shall have full authority to
interpret and construe the terms of the Plan and this Option Agreement.  The determination of the Board as to any such
matter of interpretation or construction shall be final, binding and
conclusive.

 

20.           Dispute Resolution.  The parties agree to use their reasonable
best efforts to resolve any dispute regarding this Option Agreement through
good faith negotiations.  A party hereto
must give written notice of the substance of any dispute regarding this Option
Agreement to any other party to whom such dispute pertains.  Any such dispute that cannot be resolved
within 30 calendar days of receipt of the required notice (or such other time
period to which the parties may agree) will be submitted to an arbitrator
selected by mutual agreement of the parties. 
In the event that, within 50 days of the receipt of the required written
notice, a single arbitrator has not been selected by mutual agreement of the
parties, a panel of three arbitrators will be selected.  Each party to the dispute will select one
arbitrator and the two selected arbitrators will select one additional
arbitrator.  Except as the parties to the
dispute may otherwise agree, such arbitration will be conducted in accordance
with the then-existing rules for Commercial Arbitration of the American
Arbitration Association.  The decision of
the arbitrator or arbitrators, or of a majority thereof, as the case may be,
shall be made in writing and will be final and binding upon the parties hereto
as to the questions submitted.  The
parties will abide by and comply with such decision, which may be entered as an
enforceable judgment in a court of competent jurisdiction; provided, however,
the arbitrator or arbitrators, as the case may be, shall not be empowered to
award punitive damages.  Unless the
decision of the arbitrator or arbitrators, as the case may be, provides for a
different allocation of costs and expenses determined by the arbitrators to be
equitable under the circumstances, the parties in any

 

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arbitration under this Option Agreement will bear their
own costs and expenses and will each be responsible for one half of the
arbitrator(s) fees.

 

IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Option
Agreement on the day and year first above written.

 

 

	
  INFRASOURCE
  SERVICES, INC.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

 

The
undersigned hereby accepts and agrees to all the terms and provisions of the
foregoing Option Agreement and to all the terms and provisions of the Plan,
herein incorporated by reference.

 

 

	
  The
  Optionee:

  	
   

  
	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

7Exhibit 10.1

 

FIRST AMENDMENT

TO THE 2005 HERITAGE
COMMERCE CORP

SUPPLEMENTAL EXECUTIVE
RETIREMENT PLAN

 

This First Amendment to the 2005 Heritage Commerce
Corp Supplemental Executive Retirement Plan (hereinafter “First Amendment”) is
made and entered into effective this January 27, 2006, by Heritage Commerce
Corp. This First Amendment amends the 2005 Heritage Commerce Corp Supplemental
Executive Retirement Plan, designed to provide supplemental retirement benefits
to certain key employees of Heritage Commerce Corp, Heritage Bank of Commerce
and subsidiaries or affiliates thereof (hereinafter “the Employer”), effective
as of January 1, 2005, as follows:

 

Paragraph 5.1 shall be amended so as to add/insert the
following language immediately after the last sentence of paragraph 5.1:

 

Furthermore, for any Executive affected by this six
(6) month delay in payment imposed by IRC 409A, and when applicable, the
aggregate amount of the first seven (7) months of installments shall be paid at
the beginning of the seventh month following the date of separation from
service. Monthly installment payments shall continue thereafter according to
Form of Benefit chosen.

 

To the extent that any paragraph, term, or provision of The 2005
Heritage Commerce Corp Supplemental Executive Retirement Plan is not
specifically amended herein, or in any other amendment thereto, said paragraph,
term, or provision shall remain in full force and effect as set forth in said
Plan.

 

WHEREFORE, the following duly authorized representatives have signed
this Agreement as of the written date.

 

HERITAGE COMMERCE CORP

 

 

	
  By:

  	
  /s/ Lawrence D. McGovern

  	
   

  	
  Date:

  	
  1/27/06

  	
   

  
	
   

  	
  Lawrence D. McGovern CFO

  	
   

  	
   

  

 

 

	
  By:

  	
  /s/ Rebecca A. Levey

  	
   

  	
  Date:

  	
  1/27/06

  	
   

  
	
   

  	
  Rebecca A. Levey

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