Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(the “Agreement”) is entered into by and between HERITAGE COMMERCE CORP, a California bank holding company (the “Company”),
HERITAGE BANK OF COMMERCE, a California banking corporation (the “Bank”), and ROBERTSON CLAY JONES, an individual
(the “Executive”) as of September 15, 2022 (the “Effective Date”). This Agreement replaces
any previous employment agreements between the parties and makes such previous agreements null and void.

 

RECITALS

 

WHEREAS, the Company is a
California corporation and a bank holding Company registered under the Bank Holding Company Act of 1956, as amended, subject to the supervision
and regulation of the Board of Governors of the Federal Reserve System,

 

WHEREAS, the Company is the
parent holding company for the Bank, which is a California banking association, subject to the supervision and regulation of the California
Department of Financial Protection and Innovation and the Federal Reserve Board,

 

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

 

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 Company
and 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 Company, the Bank
and the Executive hereby agree as follows:

 

1.              Employment.

 

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

 

1.2          Devotion
to Bank Business. The Executive shall devote Executive’s full business time, ability, and attention to the business of the
Company and the Bank during the term of this Agreement and shall not during the term of this Agreement engage in any other business activities,
duties, or pursuits whatsoever, or directly or indirectly render any services of a business, commercial, or professional nature to any
other person or organization, whether for compensation or otherwise, without the prior written consent of the Board of Directors of the
Company and the Bank. 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 Company and the Bank in accordance with this Agreement. Nothing in this Agreement shall be interpreted to prohibit
the Executive from making passive personal investments. However, the Executive shall not directly or indirectly acquire, hold, or retain
any interest in any business competing with or similar in nature to the business of the Bank and the Company, except as permitted by
Company or Bank policies or authorized by the Board of Directors of the Company and the Bank.

 

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1.3          Standard.
The Executive will set a high standard of professional conduct given the Executive’s role with the Company and the Bank and the
Executive’s responsibility relative to the Company’s and the Bank’s presence and stature in the community. The Executive
will, at all times, emulate this high professional standard of conduct in order to develop and enhance the Company’s and the Bank’s
reputation and image. The Executive will comply with all applicable rules, policies and procedures of the Company and the Bank and any
of its subsidiaries and all pertinent regulatory standards as may affect the Company and the Bank.

 

1.4          Location.
The Executive’s official office shall be at the principal executive offices of the Company and the Bank located in San Jose, California,
however, it is understood that Executive may work remotely or from any one of the Bank’s branch offices. Executive may be required
to travel from time to time in the course of performing the Executive’s duties for the Company and the Bank.

 

1.5          No
Breach of Contract. The Executive hereby represents to the Company and the Bank that: (a) 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 the Executive is
otherwise bound; (b) 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 to the Company and the Bank; and
(c) that except as disclosed (and provided copies) 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 term of this Agreement shall be a period of one (1) year from the Effective Date, subject to the termination provisions of Section 6.
Upon the occurrence of the first annual anniversary of the Effective Date, and on each anniversary date thereafter, the term of this
Agreement shall be deemed automatically extended for an additional one (1) year term, subject to the termination provisions of Section 6.

 

3.             Compensation.

 

3.1          Salary.
The Executive shall receive a salary at an annual rate of $560,000 which will be paid in accordance with the Company’s and the
Bank’s normal payroll procedures including applicable adjustments for withholding taxes. The Executive shall receive such annual
increases in salary, if any, as may be determined by the Company’s Board of Directors annual review of the Executive’s compensation
each year during the term of this Agreement. 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.

 

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3.2          Incentive
Compensation.

 

(a)          The
Executive shall be entitled to qualify for an annual incentive compensation payment pursuant to the terms of the Company’s Executive
Officer Bonus Plan in effect at the date of this Agreement, and as amended at any future date or pursuant to any successor incentive
plan or arrangement adopted by the Company or the Bank for its officers (the “Incentive Plan”). Notwithstanding any
terms of the Incentive Plan to the contrary, an annual payment if earned under the Incentive Plan for a fiscal year shall be paid to
the Executive no later than the 15th day of the third month following the end of the calendar year in which the annual incentive compensation
payment is no longer subject to a substantial risk of forfeiture. Except as set forth in the Incentive Plan or this Agreement, or in
any successor incentive plan or arrangement, no incentive compensation payments shall be prorated for a partial year during the year
the Executive’s employment is terminated and the Executive shall not be entitled to receive incentive compensation payments for
any year during the term of this Agreement in which Executive was not employed by the Company and the Bank for the full fiscal year.

 

(b)          The
Executive shall be entitled to qualify for the awards of Restricted Stock Units and Performance Restricted Stock Units pursuant to the
Company’s 2013 Equity Incentive Plan and Long Term Incentive Equity Program.

 

(c)          On
the Effective Date the Company shall issue a stock award of 25,000 shares of restricted stock to the Executive vesting ratably over three
years subject to acceleration on a change of control.

 

3.3          Other
Benefits. The Executive shall be entitled to those benefits adopted by the Company and the Bank for all executive officers of the
Company or the Bank, subject to applicable qualification requirements and regulatory approval requirements, if any. To the extent that
the level of such benefits is based on seniority or compensation levels, the Company and the Bank shall make appropriate and proportionate
adjustments to the Executive’s benefits. The Executive shall be further entitled to the following additional benefits which shall
supplement or replace, to the extent duplicative of any part or all of the general officer benefits and the benefits otherwise provided
to the Executive:

 

(a)          Automobile
Allowance and Insurance. The Bank will pay to the Executive an automobile allowance in the amount of $1,000 per month during the
term of this Agreement. The Bank shall reimburse the Executive for gasoline and maintenance expenditures related to use of the automobile
acquired or used by the Executive upon presentation and approval of receipts, invoices or other appropriate evidence of such expense
in accordance with the policies of the Bank. The Executive shall obtain and maintain public liability insurance and property damage insurance
policies with insurer(s) acceptable to the Bank with such coverages in such amounts as may be acceptable to the Bank from time to
time. The Bank may elect to provide and pay for such insurance policies in lieu of the Executive maintaining such policies.

 

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(b)          Vacation.
The Executive shall be entitled to 30 paid vacation days for each calendar year (reduced pro rata for any partial year), of which at
least 10 days (reduced pro rata for any partial year) must be taken consecutively. Vacation may be accrued in accordance with the Company’s
or Bank’s policy.

 

(c)          Insurance.
The Bank or the Company shall provide during the term of this Agreement at no cost to the Executive group life, health (including medical,
dental, vision and hospitalization), accident and disability insurance coverage for the Executive and the Executive’s dependents
through a policy or policies provided by the insurer(s) selected by the Company or the Bank in their sole discretion on the same
basis as all other executives in comparable positions with the Bank.

 

(d)          401(k).
The Company 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 to participate in the 401(k) plan, and shall receive a matching contribution in accordance
with the terms of the 401(k) plan from the Company.

 

(e)          Employee
Stock Ownership Plan. The Executive will be eligible to participate in the Company’s Employee Stock Ownership Plan (“ESOP”),
subject to the terms and conditions of the ESOP.

 

(f)          Reimbursement
for Tax Preparation. The Bank will reimburse the Executive for up to $1,200 of expense incurred by the Executive for tax consultation
and preparation of tax returns, upon presentation and approval of receipts, invoices or other appropriate evidence of such expense in
accordance with policies of the Bank.

 

(g)          Annual
Physical Exam. The Bank shall pay or reimburse the Executive of the cost, if any, in excess of applicable insurance coverage specified
in Section 3.3(c) for an annual physical examination conducted by a licensed physician(s) selected by the Executive,
the results of which examination shall not be required to be disclosed to the Bank. Any such reimbursement shall be made upon presentation
and approval of receipts, invoices or other appropriate evidence of such expense in accordance with policies of the Bank.

 

(h)          Business
Expenses/Memberships. The Executive shall be entitled to incur and be reimbursed for all reasonable business expenses, including
for monthly dues for membership to one Country Club selected by Executive and for the monthly dues for The Capital Club, (but not
any amount attributable to or payable for initiation fees or capital improvement costs or fees). The Company and the Bank shall 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 Company and the Bank’s policies.

 

4.              Indemnity.
The Bank and the Company 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 Company and the Bank to the
same extent the Bank and the Company indemnifies and holds harmless other executive officers and directors of the Company and the Bank
and in accordance with the articles of incorporation, bylaws and established policies of the Bank and the Company.

 

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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          “Average
Annual Bonus” means the average bonus or incentive compensation amount paid to (or earned by) the Executive during the three
(3) fiscal years (including the period of employment with the Company and the Bank prior to the Effective Date) immediately preceding
the Termination Date.

 

5.3          “Base
Salary” means, as of any Date of Termination of employment, the current annual salary of the Executive.

 

5.4          “Cause”
means (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 or the Company; (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 willfully breaches a fiduciary duty, or violates any law, rule or regulation, which breach or violation
results in a material adverse effect on the Company and the Bank (taken as a whole). If the Company or Bank decides to terminate the
Executive’s employment for Cause, the Company or Bank (as applicable) will provide the Executive with notice specifying the grounds
for termination, accompanied by a brief written statement stating the relevant facts supporting such grounds.

 

5.5          “Change
of Control” means, subject to the limitations of Section 409A of the Code, set forth in Section 7 of this
Agreement, the earliest occurrence of one of the following events:

 

(a)          the
acquisition (or acquisition during the 12 month period ending on the date of the most recent 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 promulgated under the
Exchange Act) of 40% or more of either (i) the then outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of the Company entitled
to vote generally in the election of directors (“Outstanding Company 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 Company, (ii) any acquisition by the Company 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 Company or the Bank or any corporation controlled by the Company or the Bank 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

 

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(b)          individuals
who, as of the Effective Date, constitute the Board of Directors of the Company (the “Incumbent Board”) cease for
any reason other than resignation, death or disability to constitute at least a majority of the Company’s Board of Directors during
any 12 month period; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination
for election by the Company’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 Company’s Board of Directors; or

 

(c)          consummation
of a reorganization, merger or consolidation of the Company or the Bank, or sale or other disposition (in one transaction or a series
of transactions) of any assets of the Bank or the Company having a total fair market value equal to, or more than, 40% of the total gross
fair market value of all of the assets of the Bank or the Company immediately prior to such acquisition or acquisitions (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 Common Stock and Outstanding 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 all or substantially all of the Company’s or Bank’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 Common Stock and Outstanding 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 Company or the Bank or such corporation
resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, of 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 Company’s Board of Directors at the time of the execution of the initial agreement, or of the action of the Company’s
Board of Directors, providing for such Business Combination; or

 

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

 

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

 

5.7          “Change
of Control Period” means the period of time (a) commencing on the earlier of (i) 120 days before the date the Change
of Control occurs, or if earlier, 120 days before a definitive agreement is executed by the Company or the Bank for a transaction described
in Section 5.4(c) (provided, however, that in the event of this subsection (a)(i) the Executive reasonably
demonstrates that the Executive’s termination of employment should it occur was either (x) at the request of a third party
who has taken steps reasonably calculated to effect a change in control, or (y) otherwise arose in connection with a Change in Control),
or (ii) the date the Change of Control occurs, and (b) ending on the last day of the 24th calendar month immediately following
the month the Change of Control occurred.

 

5.8          “Date
of Termination” means (a) if the Executive’s employment is terminated due to the Executive’s death, the Date
of Termination shall be the date of death; (b) if the Executive’s employment is terminated due to Disability, the Date of
Termination is the Disability Effective Date; (c) if the Executive’s employment is terminated by the Bank or the Company for
Cause, the Date of Termination is the date on which the Bank or the Company gives notice to the Executive of such termination; (d) if
the Executive’s employment is terminated by the Bank or the Company without Cause or voluntarily by the Executive, the Date of
Termination shall be the date specified in the notice of termination; and (e) if the Executive’s employment terminates for
any other reason, the Date of Termination shall be the Executive’s final date of employment.

 

5.9          “Disability”
means a physical or mental condition of the Executive which occurs and persists and which, in the written opinion of a physician selected
by the Company or 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 the Executive’s duties for an indefinite
period of not less than 180 days.

 

5.10        “Good
Reason” means:

 

(a)          any
material adverse change in the salary, incentive compensation, benefits, status, responsibilities, authority, and duties (including offices
held, titles and reporting requirements or appointment to any position with a subsidiary business entity whether existing, newly created
or resulting from a transaction involving a Change of Control) of the Executive, as contemplated by Section 1 of this Agreement;

 

(b)          any
failure by the Company or Bank to comply with any of the provisions of Sections 3 or 4 of this Agreement, other than
an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the Company or Bank promptly after
receipt of notice thereof given by the Executive;

 

(c)          the
Company’s requiring the Executive to be based at any office or location that increases the Executive’s current commute (as
of the Effective Date) from his principal residence to the principle executive offices of the Company and the Bank by more than 10 miles;

 

(d)          any
purported termination by the Company or the Bank of the Executive’s employment otherwise than as expressly permitted by this Agreement;
or

 

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(e)          any
failure by the Company or the Bank to comply with and satisfy Section 8 of this Agreement.

 

For purposes of this Section 5.10
any reasonable good faith determination of “Good Reason” made by the Executive shall be conclusive.

 

5.11          “Release
Agreement” means a written agreement executed by the Company, the Bank and the Executive substantially in form of Exhibit A,
attached to this Agreement

 

6.          Termination.

 

6.1          This
Agreement may be terminated for the following reasons:

 

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

 

(b)          Disability.
In the event of the Executive’s Disability, the Company or the Bank may give the Executive a notice of termination. In such event,
the Executive’s employment with the Company and the Bank and this Agreement shall terminate without further act of the parties
effective 30 days after receipt of such notice by the Executive (the “Disability Effective Date”) provided, however,
that within the 30 days after such receipt, the Executive shall not have returned to full-time performance of the Executive’s duties.
Unless otherwise agreed in writing between the Executive, the Company and the Bank, the Executive shall immediately cease performing
and discharging the duties and responsibilities of the Executive’s positions and remove the Executive’s personal belongings
from the Company’s and the Bank’s premises. All rights and obligations accruing to the Executive under this Agreement shall
cease at such termination, except that such termination shall not prejudice the Executive’s rights regarding employment benefits
which shall have accrued prior to such termination, and any other remedy which the Executive may have at law, in equity or under this
Agreement, which remedy accrued prior to such termination.

 

(c)          Cause.
The Company or the Bank may terminate the Executive’s employment and this Agreement for Cause. Unless otherwise agreed in writing
between the Executive, the Company and the Bank, upon receipt of notice of termination for Cause the Executive shall immediately cease
performing and discharging the duties and responsibilities of the Executive’s positions and remove the Executive’s personal
belongings from the Company’s and the Bank’s premises. All rights and obligations accruing to the Executive under this Agreement
shall cease at such termination, except that such termination shall not prejudice the Executive’s rights regarding employment benefits
which shall have accrued prior to such termination, and any other remedy which the Executive may have at law, in equity or under this
Agreement, which remedy accrued prior to such termination.

 

(d)          Termination
by Bank or the Company without Cause. Subject to the last sentence of this Section 6.1(d), the Company or the Bank may,
at its election and in its sole discretion, terminate the Executive’s employment and this Agreement at any time and for any reason
or for no reason, upon 30 days prior written notice to the Executive, without prejudice to any other remedy to which the Company or the
Bank may be entitled either at law, in equity or under this Agreement. Unless otherwise agreed in writing between the Executive, the
Company and the Bank, upon the Executive’s receipt of notice of termination without Cause, the Executive shall immediately cease
performing and discharging the duties and responsibilities of the Executive’s positions and remove the Executive’s personal
belongings from the Company’s and the Bank’s premises. All rights and obligations accruing to the Executive under this Agreement
shall cease at such termination, except that such termination shall not prejudice the Executive’s rights regarding employment benefits
which shall have accrued prior to such termination, including the right to receive the severance benefits specified in Section 6.2(a) or
6.2(b) below, and any other remedy which the Executive may have at law, in equity or under this Agreement, which remedy accrued
prior to such termination. For the avoidance of doubt, if the Company terminates the Executive from Executive’s position set forth
in Section 1.1 of this Agreement, but the Executive remains an employee of the Bank, termination by the Company shall not
be deemed a termination without cause for purposes of Section 6.2(a) or Section 6.2(b) or constitute
a termination of this Agreement.

 

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(e)          Voluntary
Termination by Executive. The Executive may terminate the Executive’s employment and this Agreement at any time and for any
reason or no reason, upon 30 days prior written notice to the Company and the Bank. Unless otherwise agreed in writing between the Executive,
the Company and the Bank, upon the Company’s and the Banks’s receipt of the Executive’s written notice of voluntary
termination the Executive shall immediately cease performing and discharging the duties and responsibilities of the Executive’s
positions and remove the Executive’s personal belongings from the Company’s and the Bank’s premises. All rights and
obligations accruing to the Executive under this Agreement shall cease at such termination, except that such termination shall not prejudice
the Executive’s rights regarding employment benefits which shall have accrued prior to the date of such termination and any other
remedy which the Executive may have at law, in equity or under this Agreement, which remedy accrued prior to the date of such termination.

 

(f)          Termination
by the Executive for Good Reason. The Executive may resign the Executive’s employment from the Company and Bank due to a Good
Reason (i) if the Company or the Bank has not cured or remedied the event giving rise to the Good Reason within thirty 30 days after
its receipt of a written notice from the Executive stating the Executive’s belief that a Good Reason event exists; and (ii) such
written notice is provided to the Company within 30 days of the purported Good Reason event and describes in detail the basis and underlying
facts supporting the Executive’s belief that a Good Reason event has occurred. Failure to timely provide such written notice to
the Company means that the Executive will be deemed to have consented to and irrevocably waived the potential Good Reason event. If the
Company or Bank does timely cure or remedy the Good Reason, then the Executive may either resign employment without it being due to a
Good Reason or the Executive may continue to remain employed subject to the terms of this Agreement. The Company’s receipt of a
notification by the Executive of a Good Reason event shall not be deemed to constitute the Company’s acknowledgement, agreement
or admission that a Good Reason event has occurred. If the Executive terminates Executive’s employment and this Agreement pursuant
to this Section 6.1(f) unless otherwise agreed in writing between the Executive, the Company and the Bank, the Executive
shall immediately cease performing and discharging the duties and responsibilities of Executive’s positions and remove the Executive’s
personal belongings from the Company’s and the Bank’s premises. All rights and obligations accruing to the Executive under
this Agreement shall cease at such termination, except that such termination shall not prejudice the Executive’s rights regarding
employment benefits which shall have accrued prior to such termination and any other remedy which the Executive may have at law, in equity
or under this Agreement, which remedy accrued prior to such termination.

 

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6.2          Certain
Benefits upon Termination.

 

(a)           Termination
without Cause/Termination for Good Reason. In the event this Agreement is terminated based on Section 6.1(d) (termination
without cause) or Section 6.1(f) (termination for Good Reason) and upon execution of the Release Agreement by the Executive,
then in such case, the Executive shall receive the Accrued Obligations on the Date of Termination, and severance benefits constituting
of:

 

(i)          cash
payment in the amount equal to two (2) times the sum of the Executive’s (A) Base Salary and (B) the Average Annual
Bonus, payable in a lump sum within 60 days following the Date of Termination, and

 

(ii)         reimbursement
of up to $5,000 for bona fide, professional out placement services upon presentation of receipts, invoices or other appropriate evidence
of such expense in accordance with policies of the Bank.

 

(iii)        continuation
of group insurance coverage specified in Section 3.3(b) of this Agreement on terms at least equal to those if the Executive’s
employment had not been terminated, but not less favorable than that provided to other executives in comparable positions with the Bank,
for a period of 12 months from the Date of Termination, including, continuation of medical coverage for the Executive and the Executive’s
dependents pursuant to The Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), or under applicable California
law pursuant to Assembly Bill No. 1401 (“Cal COBRA”), with one hundred percent (100%) of premiums for the insurance
coverage payable by the Company or the Bank monthly to the Executive for a period of 12 months from the Date of Termination. After expiration
of the 12 month period, the Executive and the Executive’s dependents shall have such rights to continue to participate under
the Company’s or the Bank’s group insurance coverage specified in Section 3.3(b)) at the Executive’s expense
to the extent available under the terms of the plan or benefit. The Executive agrees to notify the Company or the Bank as soon as practicable,
but not less than 10 business days in advance of the commencement of comparable insurance coverage with another employer. The Company’s
and Bank’s obligation for the 12 month period specified herein with respect to the foregoing benefits shall be limited to the extent
that the Executive obtains any such benefits pursuant to a subsequent employer’s benefit plans, in which case the Company or the
Bank may reduce the coverage of any benefits it is required to provide the Executive hereunder so long as the aggregate coverage and
benefits of the combined benefit plans of the new employer are not substantially less favorable to the Executive than the coverage and
benefits required to be provided hereunder.

 

Notwithstanding the foregoing
or any other provision of this Agreement, if any part or all of the severance benefits is subject to taxation under Section 409A
of the Code, as determined by the Company or the Bank, with the advice of its independent accounting firm or other tax advisors, then
the severance benefits shall be subject to modification as set forth in Section 7 of this Agreement.

 

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Notwithstanding the foregoing,
when the Executive is entitled to the severance benefits provided in Section 6.2(b), then Executive shall not be entitled
to the severance benefits pursuant to this Section 6.2(a).

 

The Executive acknowledges
and agrees that severance benefits pursuant to this Section 6.2(a) are in lieu of all damages, payments and liabilities
on account of the early termination of this Agreement and are the sole and exclusive remedy for the Executive for a termination specified
in Section 6.1(d) or Section 6.1(f).

 

(b)          Termination
and Change in Control. In the event of a Change in Control and at any time during the Change of Control Period (x) the Executive’s
employment is terminated, or (y) the Executive voluntarily terminates the Executive’s employment and this Agreement for Good
Reason, and upon execution of the Release Agreement by the Executive, then the Executive shall receive the Accrued Obligations on the
Date of Termination, and the severance benefits consisting of:

 

(i)          a
cash payment in an amount equal to two and three-fourths (2.75) times the sum of the Executive’s (A) Base Salary and (B) Average
Bonus, payable in a lump sum within 60 days following the Date of Termination.

 

(ii)         continuation
of group insurance coverage specified in Section 3.3(b) of this Agreement on terms at least equal to those if the Executive’s
employment had not been terminated, but not less favorable than that provided to other executives in comparable positions with the Bank,
for a period of 24 months from the Date of Termination, including continuation of medical coverage for the Executive and the Executive’s
dependents pursuant to Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), or under applicable California
law pursuant to Assembly Bill No. 1401 (“Cal COBRA”), with one hundred percent (100%) of premiums for the insurance
coverage payable by the Company or the Bank monthly to the Executive for a period of 24 months from the Date of Termination. After such
expiration of the 24 month period, the Executive and the Executive’s dependents shall have such rights to continue to participate
under the Bank’s or the Company’s group insurance coverage specified in Section 3.3(b)) at the Executive’s
expense to the extent available under the terms of the plan or benefit. The Executive agrees to notify the Company or the Bank as soon
as practicable, but not less than 10 business days in advance of the commencement of comparable insurance coverage with another insurance
carrier. The Company’s or the Bank’s obligation for the 24 month period specified herein with respect to the foregoing benefits
shall be limited to the extent that the Executive obtains any such benefits pursuant to a subsequent employer’s benefit plans,
in which case the Company or the Bank may reduce the coverage of any benefits it is required to provide the Executive hereunder so long
as the aggregate coverage and benefits of the combined benefit plans of the new employer are not substantially less favorable to the
Executive than the coverage and benefits required to be provided hereunder.

 

The Executive acknowledges
and agrees that severance benefits pursuant to this Section 6.2(b) are in lieu of all damages, payments and liabilities
on account of the events described above for which such severance benefits may be due the Executive under Section 6.2(b) of
this Agreement. This Section 6.2(b) shall be binding upon and inure to the benefit of the Bank and the Company and their
respective successors and assigns.

 

    11 

     

    

 

Notwithstanding the foregoing,
the Executive shall not be entitled to receive severance benefits pursuant to this Section 6.2(b) in the event Executive’s
termination of employment results from an occurrence described in Sections 6.1(a), 6.1(b) or 6.1(c).

 

(c)          Death.
If the Executive’s employment terminates 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
incentive compensation 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 Company and the Bank to the estate and beneficiaries of other executives in comparable positions with the Company and
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.

 

(d)          Disability.
If the Executive’s employment terminates 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 incentive compensation
for the year in which the termination occurs prorated through the Date of Termination and any benefits under such plans, programs, practices
and policies relating to disability benefits, if any, as in effect on the Date of Termination.

 

(e)          Cause/Voluntary
Termination. If the Executive’s employment terminates for Cause, this Agreement shall terminate without further obligations
to the Executive other than the obligation to pay to the Executive the Accrued Obligations. If the Executive’s employment terminates
due to the Executive’s voluntarily termination of this Agreement, except as provided in Section 6.1(f) or clause
(y) of the first paragraph of Section 6.2(b), this Agreement shall terminate without further obligations to the
Executive other than the obligation to pay to the Executive the Accrued Obligations.

 

(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 without cause and should there thereafter be a Change of Control,
then the Executive would be entitled to be paid only under Section 6.2(b) and not under Section 6.2(a),
as well. In addition, the Executive shall not be entitled to receive severance benefits of any kind from any parent, wholly owned subsidiary
or other affiliated entity of the Company or the Bank if in connection with the same event or series of events the payments provided
for in this Section 6.2 has been triggered.

 

7.              Section 409A
Limitation/Section 280(g).

 

(a)          Section 409A.
It is the intention of the Company, the Bank, and the Executive that the severance benefits payable to the Executive under Section 6.2
either be exempt from, or otherwise comply with, Section 409A (“Section 409A”) of the Code.

 

    12 

     

    

 

Notwithstanding any other term
or provision of this Agreement, to the extent that any provision of this Agreement is determined by the Company or the Bank, with the
advice of its independent accounting firm or other tax advisors, to be subject to and not in compliance with Section 409A, including,
without limitation, the definition of Change in Control or the timing of commencement and completion of severance benefits and/or other
benefit payments to the Executive hereunder, or the amount of any such payments, such provisions shall be interpreted in the manner required
to exempt the benefit from or to comply with Section 409A. The Company, the Bank and the Executive acknowledge and agree that such
interpretation could, among other matters, (i) limit the circumstances or events that constitute a “change in control;”
(ii) delay for a period of six months or more, or otherwise modify the commencement of severance and/or other benefit payments;
(iii) modify the completion date of severance and/or (iv) other benefit payments and/or reduce the amount of the benefit otherwise
provided.

 

The Company, Bank and the Executive
further acknowledge and agree that if, in the judgment of the Company or the Bank, with the advice of its independent accounting firm
or other tax advisors, amendment of this Agreement is necessary to exempt the benefits from or to comply with Section 409A, the
Company, the Bank, and the Executive will negotiate reasonably and in good faith to amend the terms of this Agreement to the extent necessary
so that it exempts the benefits from or to comply with Section 409A (with the most limited possible economic effect on the Company,
the Bank and the Executive). For example, if this Agreement is subject to Section 409A and Section 409A requires that severance
and/or other benefit payments must be delayed until at least six months after the Executive terminates employment, then the Bank, the
Company and the Executive shall delay payments and/or promptly seek a written amendment to this Agreement that would, if permissible
under Section 409A, eliminate any such payments otherwise payable during the first six months following the Executive’s termination
of employment and substitute therefore a lump sum payment or an initial installment payment, as applicable, at the beginning of the 7th
month following the Executive’s termination of employment which, in the case of an initial installment payment, would be equal
in the aggregate to the amount of all such payments thus eliminated. Notwithstanding the foregoing, (a) the Executive and the Executive’s
dependents shall not be denied access to and participation in any health or medical insurance coverage and benefits, for any period of
time the Executive and the Executive’s dependents are otherwise eligible, and (b) the Executive acknowledges and agrees that
the Company or the Bank shall have the exclusive authority to determine whether the Executive is a “specified employee” within
the meaning of Section 409A(a)(2)(B)(i).

 

(b)          Section 280(g).
If any payment or benefit the Executive would receive in connection with a Change of Control from the Company or otherwise (“Payment”)
would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for
this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then
such Payment will be equal to the Reduced Amount. The “Reduced Amount” will be either (x) the largest portion
of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion, up to
and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment
taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the Executive’s receipt,
on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to
the Excise Tax. If a reduction in the Payment constituting “parachute payments” is necessary so that no portion of such Payment
is subject to the Excise Tax, then the reduction shall occur in a manner to maximize the Executive’s after-tax retained value and
if necessary to comply with Code Section 409A shall be effected in the following order: first, reduction of cash payments; second,
cancellation of accelerated vesting of stock awards; and third, reduction of employee benefits. The Company shall determine the extent
to which the Executive is subject to the Excise Tax in its reasonable discretion and in accordance with the regulations promulgated under
Section 280G of the Code. Notwithstanding the foregoing, the parties will use its good faith efforts to maximize to the extent reasonable
the Executive’s after-tax retained value of the payments and benefits the Executive receives in connection with a Change of Control
in accordance with the foregoing.

 

    13 

     

    

 

8.              Assignment.
This Agreement will inure to the benefit of and be binding upon the Bank and the Company and any of their respective 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 the Executive’s rights, obligations or benefits under this Agreement. The Company and 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 Company or the Bank to assume expressly and agree to perform this Agreement in the same manner and
to the same extent that the Company and the Bank be required to perform it if no such succession had taken place. As used in this Agreement,
the “Company” or the “Bank” shall mean the Company or the Bank, as applicable, as hereinbefore defined and any
successor to the Company’s or Bank’s business and/or assets as aforesaid which assumes and agrees to perform this Agreement
by operation of law, or otherwise.

 

9.              Specific
Performance. The Executive hereby represents and agrees that the services to be performed under the terms of this Agreement are of
a special, unique, unusual, extraordinary, and intellectual character that gives them a peculiar value, the loss of which cannot be reasonably
or adequately compensated in damages in an action at law. The Executive therefore expressly agrees that the Company and the Bank, in
addition to any other rights or remedies that the Bank and the Company may possess, shall be entitled to injunctive and other equitable
relief to prevent or remedy a breach of this Agreement by the Executive.

 

10.            Loyalty,
Confidentiality and Non-Solicitation by the Executive.

 

(a)          Definitions.
The term “Trade Secrets” shall be given its broadest possible interpretation and shall mean any information, including
formulas, patterns, compilations, financial reports, customer records, marketing or financial programs, devices, methods, know-how, negative
know-how, techniques, discoveries, ideas, concepts, designs, technical information, drawings, data, customer and supplier lists, information
regarding customers, buyers and suppliers, distribution techniques, production processes, research and development projects, marketing
plans, general financial information and financial information concerning customers, the Company’s or the Bank’s legal, business
and financial structure and operations, and other confidential and proprietary information or processes which (i) derive independent
economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from
its disclosure or use and (ii) are the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

 

    14 

     

    

 

The term “Proprietary
Information” shall also be given its broadest possible interpretation and shall mean any and all information disclosed or made
available by the Company or the Bank to the Executive including, without limitation, any information upon which the Company’s or
the Bank’s business or success depends.

 

(b)          The
Executive shall not, during the term of this Agreement, directly or indirectly, either as an employee, employer, consultant, agent, principal,
stockholder (except as permitted in Section 1.2 of this Agreement), officer, director, or in any other individual or representative
capacity, engage or participate in any competitive banking or financial services business without the prior written consent of the Board
of Directors of the Company or the Bank.

 

(c)          Following
termination of this Agreement and the Executive’s employment hereunder, the Executive shall not use any Trade Secret or Proprietary
Information of the Bank or the Company or their affiliates and subsidiaries to solicit, directly, indirectly or in any manner whatsoever,
(i) any employee of the Bank, the Company or their affiliates and subsidiaries (including any former employees who voluntarily terminated
employment with the Bank or the Company within a 12 month period prior to the Executive’s termination of employment) to resign
or to apply for or accept employment with any other competitive banking or financial services business within the counties in California
in which the Bank has located its headquarters or branch offices, or (ii) any customer, person or entity that has a business relationship
with the Bank during the 12 month period prior to the Executive’s termination of employment with the Bank, terminate such business
relationship and engage in a business relationship with any other competitive banking or financial services business within the counties
in California in which the Bank has located its headquarters or branch offices.

 

11.            Disclosure
of Information. The Executive shall not, at any time or in any manner, directly or indirectly, either before or after termination
of this Agreement, without the prior written consent of the Board of Directors of the Company or except as required by law to comply
with legal process including, without limitation, by oral questions, interrogatories, requests for information or documents, subpoena,
civil investigative demand or similar process, use for the Executive’s own benefit or the benefit of any other person or entity,
or otherwise disclose or communicate to any person or entity including, without limitation, the media or by way of the World Wide Web,
any information concerning any Trade Secret or Proprietary Information of the Company or the Bank. The Executive further recognizes and
acknowledges that any Trade Secrets concerning any customers of the Company or the Bank and their respective affiliates and subsidiaries,
as it may exist from time to time, is strictly confidential and is a valuable, special and unique asset of the Company’s or the
Bank’s. In the event the Executive is required by law to disclose Trade Secrets or Proprietary Information, the Executive will
provide the Company and the Bank, and their counsel with immediate notice of such request so that they may consider seeking a protective
order. If, in the absence of a protective order or the receipt of a waiver hereunder, the Executive is nonetheless, in the written opinion
of knowledgeable counsel, compelled to disclose Trade Secrets or Proprietary Information to any tribunal or any other party or else stand
liable for contempt or suffer other material censure or material penalty, then the Executive may disclose (on an “as needed”
basis only) such information to such tribunal or other party without liability hereunder. Notwithstanding the foregoing, the Executive
may disclose Trade Secrets or Proprietary Information as may be required by any regulatory agency having jurisdiction over the operations
of the Company or the Bank in connection with an examination of the Company or the Bank or other proceeding conducted by such regulatory
agency. Under the Defend Trade Secrets Act of 2016 (“DTSA”) an individual shall not be held criminally or civilly liable
under any federal or state trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a federal,
state or local government official, either directly or indirectly to an attorney; and (ii) solely for the purpose of reporting or
investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding,
if such filing is made under seal. In addition, the DTSA provides that an individual who files a lawsuit for retaliation by an employer
for reporting a suspected violation of law may disclose the trade secret to the attorney for the individual and the use of trade secret
information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does
not disclosure the trade secret, except pursuant to court order.

 

    15 

     

    

 

12.            Written,
Printed or Electronic Material. All written, printed or electronic material, notebooks and records including, without limitation,
computer disks, cloud-based storage, Blackberry, iPhone, iPad (or similar devices), or lap top used by the Executive in performing duties
for the Bank or the Company, other than the Executive’s personal address lists, telephone lists, notes and diaries, are and shall
remain the sole property of the Company and the Bank. Upon termination of employment, the Executive shall promptly return all such material
(including all copies, extracts and summaries thereof) to the Bank.

 

13.            Miscellaneous.

 

13.1        Notice.
For the purposes of this Agreement, all notices, requests, consents, claims, demands, waivers,
and other communications hereunder (each, a “Notice”) shall be in writing and
addressed to the parties at the addresses set forth below (or to such other address that may be designated by the receiving party from
time to time in accordance with this Section). All Notices shall
be delivered by personal delivery, nationally recognized overnight courier (with all fees pre-paid), or email (with confirmation of transmission),
or certified or registered mail (in each case, return receipt requested, postage pre-paid). Except as otherwise provided in this Agreement,
a Notice is effective only (a) upon receipt by the receiving party, and (b) if the party giving the Notice has
complied with the requirements of this Section.

 

	Company:	HERITAGE COMMERCE CORP

    224 Airport Parkway,

    San Jose, CA 95110

    Attn: Chairman of the Board of Directors

    plazajack@me.com

     

	Bank:	HERITAGE BANK OF COMMERCE

    224 Airport Parkway

    San Jose, CA 95110

    Attn: Chairman of the Board of Directors

    plazajack@me.com

 

    16 

     

    

 

	with a copy to:	Buchalter, A Professional Corporation

    1420 Fifth Avenue, Suite 3100

    Seattle, WA 98101

    Attn: Mark A. Bonenfant, Esq.

    mbonenfant@buchalter.com

     

	Executive:	Robertson Clay Jones

    224 Airport Parkway

    San Jose, CA 95110

    Clay.jones@herbank.com

 

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

 

13.3          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.

 

13.4          Severability.
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.

 

13.5          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.

 

13.6          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 or the Company, 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.

 

13.7          Arbitration.
To the extent not resolved through mediation as provided in Section 13.6, all claims, disputes and other matters in question
arising out of or relating to this Agreement, any termination of the Executive’s employment, the enforcement or interpretation
of this Agreement, or because of an alleged breach, default, or misrepresentation in connection with any of the provisions of this Agreement,
including (without limitation) any state or federal statutory claims, shall be resolved by binding arbitration in accordance with the
Company’s and Bank’s Agreement to Binding.

 

    17 

     

    

 

13.8          Attorneys
Fees. In the event of litigation, arbitration or any other action or proceeding between the parties to interpret or enforce this
Agreement, or any part thereof or relating to this Agreement, the prevailing party shall be entitled to recover its costs related to
such action or proceeding and its reasonable fees of attorneys, accountants and expert witnesses incurred by such party in connection
with any such action or proceedings. The prevailing party shall be deemed to be the party which obtains substantially the relief sought
by final resolution, compromise or settlement, or as may otherwise be determined by order of a court of competent jurisdiction in the
event of litigation, an award or decision of an arbitrator in the event of arbitration.

 

13.9          Entire
Agreement. This Agreement and the Company’s and Bank’s Agreement to Binding Arbitration supersedes any and all agreements,
either oral or in writing, between the parties with respect to the employment of the Executive by the Company and the Bank and contains
all of the covenants and agreements between the parties with respect to the employment of the Executive by the Company and the Bank.
Each party to this Agreement acknowledges that no other representations, inducements, promises, or agreements, oral or otherwise, have
been made by any party, or anyone acting on behalf of any party, which are not set forth herein, and that no other agreement, statement,
or promise not contained in this Agreement shall be valid or binding on either party.

 

13.10        Waiver.
The failure of a party to insist on strict compliance with any of the terms, provisions, covenants, or conditions of this Agreement by
another party shall not be deemed a waiver of any term, provision, covenant, or condition, individually or in the aggregate, unless such
waiver is in writing, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment
of that right or power for all or any other times.

 

13.11        Severability.
If any provision in this Agreement is held by a court of competent jurisdiction or arbitrator to be invalid, void, or unenforceable,
the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way. Any provision
of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid
or unenforceable.

 

13.12        Interpretation.
This Agreement shall be construed without regard to the party responsible for the preparation of the Agreement and shall be deemed to
have been prepared jointly by the parties. Any ambiguity or uncertainty existing in this Agreement shall not be interpreted against any
party, but according to the application of other rules of contract interpretation, if an ambiguity or uncertainty exists.

 

13.13        Governing
Law and Venue. The laws of the State of California, other than those laws denominated choice of law rules, shall govern the validity,
construction and effect of this Agreement. Any action which in any way involves the rights, duties and obligations of the parties hereunder
and is not resolved by binding arbitration shall be brought in the courts of the State of California and venue for any action or proceeding
shall be in Santa Clara County or in the United States District Court for the Northern District of California, and the parties hereby
submit to the personal jurisdiction of said courts.

 

    18 

     

    

 

13.14        Payments
due Deceased Executive. If the Executive dies prior to the expiration of the term of the Executive’s employment (except termination
resulting from such death), any payments that may be due the Executive from the Bank or the Company under this Agreement as of the date
of death shall be paid to the Executive’s heirs, beneficiaries, successors, permitted assigns or transferees, executors, administrators,
trustees, or any other legal or personal representatives.

 

13.15        Effect
of Termination on Certain Provisions. Upon the termination of this Agreement, the obligations of the Bank, the Company and the Executive
hereunder shall cease except to the extent of the Bank’s or the Company’s obligation to make payments, if any, to or for
the benefit of the Executive following termination, and provided that this Section 13.15 and Sections 4, 6.2,
7, 8, 9, 10, 11, 12, and 13.1 through 13.14 shall remain in full force and effect.

 

13.16        Advice
of Counsel and Advisors. The Executive acknowledges ad agrees that he has read and understands the terms and provisions of this Agreement
and prior to signing this Agreement, Executive has had the advice of counsel and/or such other advisors as Executive deemed appropriate
in connection with the Executive’s review and analysis of such terms and provisions of this Agreement.

 

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

 

	 	“COMPANY”
	 	 
	 	HERITAGE COMMERCE CORP,

                                        a California bank holding company

 

		By:	/s/ Walter T. Kaczmarek
	 	 	Walter T. Kaczmarek
	 	 	Director and Authorized Signatory

 

 

	 	“BANK”
	 	 
	 	HERITAGE BANK OF COMMERCE,

                                        a California banking corporation

 

		By:	/s/ Walter T. Kaczmarek
	 	 	Walter T. Kaczmarek
	 	 	Director and Authorized Signatory

 

 

	 	“EXECUTIVE”

 

		By:	/s/ Robertson Clay Jones
	 	 	Robertson Clay Jones

 

    19 

     

    

 

Exhibit a

 

RELEASE
AGREEMENT

 

This Release Agreement (the
 “Release Agreement”) is entered into by and between ___________________ (“Employee”), on the one
hand, and HERITAGE BANK OF COMMERCE, a California banking corporation (the “Bank”) and HERITAGE COMMERCE CORP., a
California bank holding company (the “Company”), on the other hand.

 

RECITALS

 

A.          Employee,
the Company and the Bank entered into an Employment Agreement dated as of __________________, and any amendments thereto (the “Employment
Agreement”).

 

B.          Employee’s
employment with the Company and the Bank is terminated effective _____________ (“Termination Date”).

 

C.          A
condition precedent to certain of the Company’s and the Bank’s obligations under Section 6.2 (a) or Section 6.2(b),
as applicable of the Employment Agreement is the execution of this Release Agreement by Employee.

 

NOW, THEREFORE, in consideration
of the foregoing premises and the mutual covenants herein contained, and for other good and valuable consideration, the adequacy of which
is hereby acknowledged, the parties, intending to be legally bound, agree and covenant as follows:

 

A.          General
Release.

 

In consideration for the
payments and benefits specified in Section 6.2(a) or Section 6.2(b), as applicable of the Employment Agreement, Employee
agrees to unconditionally, irrevocably, and forever fully release, waive, and discharge the Bank and the Company, and each and all of
their past, present, and future parent companies, subsidiaries, related entities, affiliates, predecessors, successors, assigns, officers,
directors, managers, employees, members, shareholders, owners, representatives, attorneys, insurers, reinsurers, and agents (and the
past, present, and future officers, directors, managers, employees, members, shareholders, owners, representatives, attorneys, insurers,
reinsurers, and agents of any such parent companies, subsidiaries, related entities, affiliates, predecessors, successors, and assigns)
(collectively the “Released Parties”) from and against any and all claims, actions, causes of action, suits, demands,
contracts, agreements, obligations, losses, compensation, wages, penalties, liabilities, rights, and damages of any kind or nature whatsoever,
whether known or unknown, foreseen or unforeseen, which Employee ever had, now has or may claim to have against any or all of the Released
Parties for, upon or by reason of any fact, matter, injury, incident, circumstance, cause or thing whatsoever, from the beginning of
time up to and including the date of Employee's execution of this Release Agreement, including, without limitation, any claim or obligation
arising from or in any way related to Employee's employment with the Bank or the Company, the termination of that employment, or an alleged
breach of the Employment Agreement.

 

This General Release specifically
includes, but is not limited to, any claim for discrimination or violation of any statutes, rules, regulations or ordinances, whether
federal, state or local, including, but not limited to, Title VII of the Civil Rights Act, the Age Discrimination in Employment Act,
the Reconstruction Era Civil Rights Act, the California Fair Employment and Housing Act, the California Labor Code, the California Business
and Professions Code, the California constitution, and any claims at common law.

 

    A-1 

     

    

 

Employee further knowingly
and willingly agrees to waive the provisions and protections of Section 1542 of the California Civil Code, which reads:

 

A general release does not extend
to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release
and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.

 

This General Release covers
not only any and all claims by Employee against the Bank and the Company, and the other persons and entities released in this General
Release, but, to the extent permitted by applicable law, it also covers any claim for damages or reinstatement asserted on Employee’s
behalf by any other person or entity, including, without limitation, any government agency, and Employee expressly waives the right to
any such damages or reinstatement. This General Release does not include any claims that cannot lawfully be waived or released by Employee.

 

B.          Revocation
Period. Employee, the Bank and the Company acknowledge and agree that (i) Employee
has twenty-one (21) days from Employee’s receipt of this Release Agreement in which to consider its terms (including, without limitation,
Employee’s release and waiver of any and all claims under the Age Discrimination in Employment Act) before executing it, although
Employee may execute this Release Agreement earlier if Employee chooses (but not earlier than Employee’s Termination Date),
(ii) Employee will have seven (7) days after Employee’s execution of this Release Agreement in which to revoke this Release
Agreement (including, without limitation, Employee’s release and waiver of any and all claims under the Age Discrimination in Employment
Act), in which event a written notice of revocation must be received by the Chief Executive Officer of the Bank before the expiration
of this seven (7) day revocation period, and (iii) this Release Agreement will not become effective and enforceable until this
seven (7) day period has expired without revocation by Employee.

 

Employee and the Bank and
the Company further acknowledge and agree that the payments and benefits specified in Section 6.2(a) or Section 6.2(b),
as applicable of the Agreement will not be made, the Release Agreement will become null and void, unless and until each of the following
four conditions are satisfied: (a) Employee executes the Release Agreement within twenty-one (21) days after receiving it, (b) Employee
returns the executed Release Agreement to the Bank no later than five (5) working days after executing it, (c) the Release
Agreement by its terms becomes effective and enforceable after the seven (7) day revocation period specified in the preceding paragraph
has expired without revocation by Employee, and (d) Employee returns all materials (pursuant to Section 12 of the Employment
Agreement) to the Bank no later than five (5) days after the Termination Date.

 

C.          Representations
By Employee.

 

Employee represents and agrees
that, prior to Employee’s execution of this Release Agreement, Employee has been informed by the Bank and the Company of Employee’s
right to consult with legal counsel regarding the terms of this Release Agreement during the 21 day review period in Paragraph B above,
that Employee has had the opportunity to discuss the terms of this Release Agreement with legal counsel of Employee’s choosing,
and that the Bank and the Company by this writing is encouraging Employee to seek this advice of legal counsel.

 

    A-2 

     

    

 

D.          Miscellaneous.

 

1.          Entire
Agreement. Except for the Employment Agreement, this Release Agreement sets forth the entire agreement between Employee and the Bank
and the Company regarding the subject matter hereof and supersedes any and all agreements, either oral or in writing, between the parties
with respect to the subject matter hereof. Each party to this Release Agreement acknowledges that no other representations, inducements,
promises, or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not set forth
herein, and that no other agreement, statement, or promise not contained in this Release Agreement shall be valid or binding on either
party.

 

2.          Severability.
If any provision in this Release Agreement is held by a court of competent jurisdiction or arbitrator to be invalid, void, or unenforceable,
the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way. Any provision
of this Release Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not
held invalid or unenforceable.

 

3.          Attorneys
Fees. In the event of litigation, arbitration or any other action or proceeding between the parties to interpret or enforce this
Agreement, or any part thereof or relating to this Agreement, the prevailing party shall be entitled to recover its costs related to
such action or proceeding and its reasonable fees of attorneys, accountants and expert witnesses incurred by such party in connection
with any such action or proceedings. The prevailing party shall be deemed to be the party which obtains substantially the relief sought
by final resolution, compromise or settlement, or as may otherwise be determined by order of a court of competent jurisdiction in the
event of litigation, an award or decision of an arbitrator in the event of arbitration.

 

The undersigned agree to
the terms of this Release Agreement and voluntarily enter into it with the intent to be bound hereby.

 

	EMPLOYEE:	HERITAGE
                                            COMMERCE CORP.

 

 

	 	 	By:	 

		Name:	 

		Title:	 

 

	 	HERITAGE BANK OF COMMERCE

 

		By:	 
	 	Name:	 
	 	Title:	 

 

    A-3Exhibit 10.1

 

SHARE PURCHASE AGREEMENT

 

This Share Purchase Agreement
(this “Agreement”), dated as of September 16, 2022, is entered into among Shanghai Highlight Media Co., Ltd., a PRC
limited liability company (the “Target”), the sellers listed in Exhibit A (each a “Seller,” and
collectively the “Sellers”) and Code Chain New Continent Limited, a company incorporated under the laws of the State
of Nevada (“CCNC” or the “Buyer”). Capitalized terms used in this Agreement have the meanings given
to such terms herein.

 

RECITALS

 

WHEREAS, Sellers own
100% equity interest in the Target; and

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

Purchase and sale

 

Section 1.01 Purchase
and Sale. Subject to the terms and conditions set forth herein, at the Closing (as defined in Section 2.01), Buyer shall issue
9,000,000 shares of common stock of the Buyer (“CCNC Shares”), valued at $0.25 per share, to the Sellers with individual
amount set forth in the Exhibit A, in exchange for the Sellers’ agreement to enter into and cause the Target to enter into certain
VIE Agreements (“VIE Agreements”) with Makesi Wulian Technology (Shanghai) Co., Ltd. (“WFOE”),
an indirect subsidiary of the Buyer, to establish a VIE (variable interest entity) structure. Through the VIE Agreements, the Target
will pay service fees to WFOE in the amount of 100% of the Target’s after-tax net income, while WFOE will be obligated to absorb
all of losses of the Target. Under the generally accepted accounting principles in the U.S. (U.S. GAAP) and for account purposes, WFOE
will treat the Target as a consolidated affiliated entity and will consolidate the financial results of the Target in the consolidated
financial statements. The VIE Agreements shall consist of Technical Consultation and Service Agreement, Equity Pledge Agreement, Equity
Option Agreement, and Voting Rights Proxy and Financial Supporting Agreement. This Agreement, the VIE Agreements and any other agreements,
instruments, and documents required to be delivered in connection with this Agreement or at the Closing are collectively referred to
as the “Transaction Documents”.

 

ARTICLE II

CLOSING

 

Section 2.01 Closing.
The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place on a date
mutually agreed by the parties after the date all of the conditions described in Section 2.02 are met (the “Closing Date”).

 

Section 2.02 Conditions
to Closing.

 

(a) The
Buyer shall hold a special meeting of stockholder as soon as possible and a majority of holders of the common stock of the Buyer, who
do not and will not have any interest in the transactions contemplated by this Agreement, shall approve the transaction contemplated
herein.

 

(b) The
Target, the Sellers and the Buyer shall obtain any and all regulatory approval as required in connection with the transactions contemplated
by this Agreement

 

Section 2.03 Sellers
Closing Deliverables. At the Closing, Sellers shall deliver to Buyer
Copies of the VIE agreements executed by the Sellers and the Target.

 

     

     

    

 

Section 2.04 Buyer
Closing Deliverables. At the Closing, the Buyer shall deliver to Sellers:

 

(a) the
certificates evidencing the CCNC Shares, free and clear of all mortgage, pledge, lien, charge, security interest, claim, community property
interest, option, equitable interest, restriction of any kind (including any restriction on use, voting, transfer, receipt of income,
or exercise of any other ownership attribute), or other encumbrance
(each, an “Encumbrance”), duly endorsed in blank or accompanied by stock powers or other instruments of transfer
duly executed in blank, with all required share transfer tax stamps affixed thereto; and

 

(b) Copies
of the VIE agreements executed by WFOE. 

 

ARTICLE III

Representations and warranties of sellers

 

Each Seller represents and
warrants to Buyer that the statements contained in this Article ARTICLE III are true and correct as of the date hereof. For purposes
of this Article ARTICLE III, “Sellers’ knowledge,” “knowledge of Sellers,” and any similar phrases shall
mean the actual or constructive knowledge of any director or officer of Sellers, after due inquiry.

 

Section
3.01 Organization and Authority of Sellers. The Sellers, if an entity, is a company duly organized and validly existing under
the laws (as defined in Section 3.03) of the PRC. Each of the Sellers has full corporate power and authority to enter into this Agreement,
the VIE Agreements and the other Transaction Documents to which Sellers are a party, to carry out its obligations hereunder and thereunder,
and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Sellers of this Agreement, the VIE
Agreements and any other Transaction Document to which Sellers are a party, the performance by Sellers of its obligations hereunder and
thereunder, and the consummation by Sellers of the transactions contemplated hereby and thereby have been duly authorized by all requisite
corporate action on the part of Sellers. This Agreement, the VIE Agreements and each Transaction Document to which Sellers are a party
constitute legal, valid, and binding obligations of Sellers enforceable against Sellers in accordance with their respective terms.

 

Section
3.02 Organizations, Authority, and Qualification of the Target.
The Target is duly organized and validly existing under the Laws of the PRC and has full corporate power and authority to
own, operate, or lease the properties and assets now owned, operated, or leased by it and to carry on its business as it has been and
is currently conducted. The Target is duly licensed or qualified to do business and is in good standing in each jurisdiction in which
the properties owned or leased by it or the operation of its business as currently conducted makes such licensing or qualification necessary.

 

Section 3.03 No
Conflicts or Consents. The execution, delivery, and performance by Sellers of this Agreement, the VIE Agreements and the other
Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will
not: (a) violate or conflict with any provision of the certificate of incorporation, by-laws, or other governing documents of Sellers
or the Target; (b) violate or conflict with any provision of any statute, law, ordinance, regulation, rule, code, treaty, or other requirement
of any Governmental Authority (collectively, “Law”) or any order, writ, judgment, injunction, decree, determination,
penalty, or award entered by or with any Governmental Authority (“Governmental Order”) applicable to Sellers or the
Target; (c) require the consent, notice, or filing with or other action by any Person (defined below) or require any permit, license,
or Governmental Order; (d) violate or conflict with, result in the acceleration of, or create in any party the right to accelerate, terminate,
or modify any contract, lease, deed, mortgage, license, instrument, note, indenture, joint venture, or any other agreement, commitment,
or legally binding arrangement, whether written or oral (collectively, “Contracts”), to which Sellers or the Target
is a party or by which Sellers or the Target is bound or to which any of their respective properties and assets are subject; or (e) result
in the creation or imposition of any Encumbrance on any properties or assets of the Target. “Person” means an individual,
corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association
or other entity.

 

    2

     

    

 

ARTICLE IV

Representations and warranties of Buyer

 

Buyer represents and warrants
to Sellers that the statements contained in this Article ARTICLE IV are true and correct as of the date hereof. For purposes of this
Article ARTICLE IV, “Buyer’s knowledge,” “knowledge of Buyer,” and any similar phrases shall mean the actual
or constructive knowledge of any director or officer of Buyer, after due inquiry.

 

Section 4.01 Authorization;
Binding Agreement. The Buyer has all requisite corporate power and authority to execute and deliver this Agreement, to perform its
obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby (a) have been duly and validly authorized and (b) no other corporate proceedings, other
than as set forth elsewhere in the Agreement, are necessary to authorize the execution and delivery of this Agreement or to consummate
the transactions contemplated hereby. This Agreement has been, and shall be when delivered, duly and validly executed and delivered by
the Buyer, assuming the due authorization, execution and delivery of this Agreement by the other parties hereto, and constitutes, or
when delivered shall constitute, the valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its
terms, except to the extent that enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization and moratorium
laws and other laws of general application affecting the enforcement of creditors’ rights generally or by any applicable statute
of limitation or by any valid defense of set-off or counterclaim, and the fact that equitable remedies or relief (including the remedy
of specific performance) are subject to the discretion of the court from which such relief may be sought (collectively, the “Enforceability
Exceptions”)

 

Section 4.02 Governmental
Approvals. No Consent of or with any Governmental Authority, on the part of the Buyer is required to be obtained or made in connection
with the execution, delivery or performance of this Agreement or the consummation of the transactions contemplated hereby, other than
(a) such filings as may be required in any jurisdiction in which such party is qualified or authorized to do business as a foreign corporation
in order to maintain such qualification or authorization, (b) such filings as contemplated by this Agreement, (c) any filings required
with Nasdaq with respect to the transactions contemplated by this Agreement, or (d) applicable requirements, if any, of the Securities
Act, the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and/ or any state “blue sky”
securities laws, and the rules and regulations thereunder.

 

Section 4.03 Non-Contravention.
The execution and delivery by the Buyer of this Agreement and the consummation of the transactions contemplated hereby, and compliance
with any of the provisions hereof, will not (a) conflict with or violate any provision of the Organizational Documents of such party
(if any), (b) conflict with or violate any Law, Order or Consent applicable to such party or any of its properties or assets, or
(c) (i) violate, conflict with or result in a breach of, (ii) constitute a default (or an event which, with notice or lapse of time or
both, would constitute a default) under, (iii) result in the termination, withdrawal, suspension, cancellation or modification of, (iv)
accelerate the performance required by such party under, (v) result in a right of termination or acceleration under, (vi) give rise to
any obligation to make payments or provide compensation under, (vii) result in the creation of any Lien upon any of the properties or
assets of such party under, (viii) give rise to any obligation to obtain any third party consent or provide any notice to any Person
or (ix) give any Person the right to declare a default, exercise any remedy, claim a rebate, chargeback, penalty or change in delivery
schedule, accelerate the maturity or performance, cancel, terminate or modify any right, benefit, obligation or other term under, any
of the terms, conditions or provisions of, any material contract of such party.

 

Section 4.04 Issuance
of the CCNC Shares. The issuance of the CCNC Shares is duly authorized and, upon issuance and payment in accordance with the terms
of the Transaction Documents the CCNC Shares shall be validly issued, fully paid and non-assessable and free from all Encumbrance with
respect to the issuance thereof.

 

    3

     

    

 

ARTICLE V

Miscellaneous

 

Section
5.01 Interpretation; Headings. This Agreement shall be construed without regard to any presumption or rule requiring construction
or interpretation against the party drafting an instrument or causing any instrument to be drafted. The headings in this Agreement are
for reference only and shall not affect the interpretation of this Agreement.

 

Section
5.02 Severability. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such
invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement.

 

Section
5.03 Entire Agreement. This Agreement, the VIE Agreements and the other Transaction Documents constitute the sole and entire
agreement of the parties to this Agreement with respect to the subject matter contained herein and therein, and supersede all prior and
contemporaneous understandings and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency
between the statements in the body of this Agreement and those in the VIE Agreements or the other Transaction Documents, and any exhibits,
the statements in the body of this Agreement will control.

 

Section
5.04 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written
consent of the other party, which consent shall not be unreasonably withheld or delayed. No assignment shall relieve the assigning party
of any of its obligations hereunder.

 

Section 5.05 Amendment
and Modification; Waiver. This Agreement may only be amended,
modified, or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof
shall be effective unless explicitly set forth in writing and signed by the party so waiving. No failure to exercise, or delay in exercising,
any right or remedy arising from this Agreement shall operate or be construed as a waiver thereof. No single or partial exercise of any
right or remedy hereunder shall preclude any other or further exercise thereof or the exercise of any other right or remedy.

 

Section
5.06 Governing Law; Submission to Jurisdiction. This Agreement shall be governed by and construed in accordance with the internal
laws of the State of New York, without giving effect to any choice or conflict of law provision or rule (whether of the State of New
York or any other jurisdiction). Any legal suit, action, proceeding, or dispute arising out of or related to this Agreement, the other
Transaction Documents, or the transactions contemplated hereby or thereby may be instituted in the federal courts of the United States
of America or the courts of the State of New York in each case located in the city of New York and county of New York, and each party
irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action, proceeding, or dispute.

 

Section
5.07 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which
together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by email or other means of electronic
transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

[signature page follows]

 

    4

     

    

 

IN WITNESS WHEREOF,
the parties have executed and delivered this Share Purchase Agreement as of the date first written above.

 

	CCNC	 
	 	 	 
	Code Chain New
Continent Limited	 
	 	 
	/s/ Wei Xu	 
	Name:	Wei Xu	 
	Title:	CEO and Chairman of the Board	 
	 	 
	THE TARGET	 
	 	 
	Shanghai Highlight
Media Co., Ltd.	 
	 	 
	/s/ Hongxiang Yu	 
	Name:	Hongxiang Yu	
	Title:	Executive Director	 
	 	 	 
	THE SHAREHOLDERS	 
	 	 
	Hongxiang Yu	 
	 	 
	/s/ Hongxiang Yu	 
	 	 	 
	Shuang Zhang	 
	 	 
	/s/ Shuang Zhang	 

 

    5

     

    

 

EXHIBIT
A

 

THE SELLERS

 

	Name	 	CCNC Shares	 
	Hongxiang Yu	 	 	6,300,000	 
	Shuang Zhang	 	 	2,700,000	 
	Total	 	 	9,000,000	 

 

 

 6

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