Document:

Form of Director Stock Option Agreement

 Exhibit 10.7 
  
 DIRECTOR 
 NONSTATUTORY STOCK OPTION AGREEMENT 
  

	1.	Grant. Greater Bay Bancorp, a California corporation (the “Company”), hereby grants to C. Donald Allen (the “Optionee”), an option (the
“Option”) to purchase a total of 1,000 shares of common stock of the Company, at the price determined as provided herein, and in all respects subject to the terms, definitions and provisions of the Greater Bay Bancorp 1996 Stock
Option Plan (the “Plan”). The capitalized terms defined in the Plan shall have the same defined meanings herein. 

  

	2.	Nature of the Option. This Option is intended by the Company and the Optionee to be a nonstatutory stock option and does not qualify for any special tax benefits to the
Optionee. This option is not an Incentive Stock Option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended. 

  

	3.	Exercise Price. The Exercise Price is $28.92 for each share of common stock, which price is not less than the Fair Market Value per share of the common stock of the
Company on the Grant Date. 

  

	4.	Term of Option. Subject to earlier termination as provided in the Plan, this Option shall terminate on January 19, 2014, and may be exercised during such term only in
accordance with the Plan and the terms of this Option. 

  

	5.	Exercise of Option. This Option shall be exercisable during its term in accordance with the provision of Section 6 of the Plan as follows: 

  

	 	a)	Right to Exercise. This Option shall vest cumulatively from the date of grant of the Option, exercisable during a period of five years after the Grant Date as follows:
20% of the Shares subject to the Option shall be vested on the first anniversary of the Grant Date, and an additional 20% of the Shares subject to the Option shall vest on each anniversary of the Grant Date thereafter.

  

	 	b)	Minimum Exercise. This Option may not be exercised for less than 10 Shares nor for a fraction of a Share. 

  

	 	c)	Method of Exercise. This Option shall be exercisable by written notice which shall state the election to exercise the Option and specify the number of whole Shares in respect
of which the Option is being exercised. Such written notice shall be signed by the Optionee and shall be delivered in person or by certified mail, to the Secretary of the Company accompanied by payment of the Exercise Price as specified below.

  
 No Shares will be issued pursuant to the
exercise of the Option unless such issuance and such exercise shall comply with all relevant provisions of law and the requirements of any stock exchange or inter-dealer quotation system upon which the shares of the Company’s common stock may
then be listed or quoted. Assuming such compliance, the Shares shall be 
  

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 considered transferred to the Optionee on the date on which the Option is exercised with respect to such
Shares. An Optionee shall have no rights as a shareholder of the Company with respect to any Shares until the issuance of a stock certificate to the Optionee for such Shares. 
  

	 	d)	Method of Payment. The entire Exercise Price of Shares issued under this Option shall be payable in cash or by certified check, official bank check, or the equivalent thereof
acceptable to the Company at the time when such Shares are purchased. Such payment also shall include the amount of any withholding tax obligation which may arise in connection with the exercise, as determined by the Company. In addition, payment
may be made in any of the following forms as indicated by an “X” in the preceding parenthesis: 

  
 (X) Surrender of Stock. Payment of all or part of the Exercise Price and any withholding taxes may be made all or in part with Shares which have
already been owned by the Optionee or Optionee’s representative for more than 6 months and which are surrendered to the Company in good form for transfer. Such Shares shall be valued at their Fair Market Value on the date when the new Shares
are purchased pursuant to exercise of the Option. 
  
 (X)
Exercise/Sale. Payment may be made by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the all or part of the Exercise Price and any withholding taxes. 
  
 (X) Exercise/Pledge. Payment may be made by the delivery (on a form
prescribed by the Company) of an irrevocable direction to pledge Shares to a securities broker or lender approved by the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of all or part of the
Exercise Price and any withholding taxes. 
  

	 	e)	Termination of Service. In the event that the Optionee’s Service as an Employee terminates: 

  
 (i) As a result of such Optionee’s death, Total and Permanent Disability, retirement or resignation
without cause, the term of the Option shall expire twelve months after the calendar year in which such event occurs, but not later than the expiration date specified in Section 4 above. Subject to the foregoing, any Options scheduled to vest during
the calendar year in which such event occurs shall accelerate and become immediately exercisable. 
  
 (ii) As a result of termination by the Company for cause, the term of the Option shall expire thirty days after the Company’s notice
or advice of such termination is dispatched to Employee, but not later than the original expiration date specified in the Stock Option Agreement. For purposes of this Paragraph (ii), “cause” shall mean an act of embezzlement, disclosure of
any of the secrets or confidential information of the Company, the inducement of any client or customer of the 
  

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 Company to break any contract with the Company, or the inducement of any principal for whom the Company
acts as agent to terminate such agency relationship, the engagement of any conduct which constitutes unfair competition with the Company, the removal of Optionee from office by an court or bank regulatory agency, or such other similar acts which the
Committee in its discretion determine to constitute good cause for termination of Optionee’s Service. As used in this Paragraph (ii), Company includes Subsidiaries of the Company. 
  
 Neither the Plan nor this Option shall be deemed to give Optionee a right to remain an Employee or consultant of the Company or Subsidiary.
The company and its Subsidiaries reserve the right to terminate the service of any Employee or consultant at any time, with or without cause, subject to applicable laws and the terms of any written employment agreement. 
  

	6.	Non-Transferability of Option. 

  

	 	(a)	Except as provided below, this Option may not be transferred in any manner other than by will, by written beneficiary designation or by the laws of descent and distribution, and may
be exercised during the lifetime of Optionee only by Optionee. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. 

  

	 	(b)	Optionee may transfer this Option in whole or in part to the following persons (and only the following persons): (i) Optionee’s spouse, former spouse, children including
adopted children, step-children, grandchildren, parents, grandparents, brothers, sisters, aunts, uncles, nieces, nephews, first cousins, mother-in-law, father-in-law, brothers-in-law, or sisters-in-law (“Family Members”), or such other
persons as may be approved in writing by the Committee in its sole and absolute discretion (“Approved Transferees”), or (ii) a trust or trusts for the exclusive benefit of any such Family Members or Approved Transferees.

  

	 	(c)	In order to effectuate a transfer pursuant to Section 6(b) above, the transfer must be in writing in an instrument submitted to the Company within ten (10) business days after its
execution. The Company may grant or withhold its consent to the transfer or the terms of the transfer in its sole and absolute discretion. In the event the Company does not notify Optionee in writing of its disapproval of the transfer or its terms
within ten (10) business days of receipt by the Company of a copy of the written transfer instrument from the Optionee, the transfer shall be deemed approved. 

  

	 	(d)	Transfers of this Option under Section 6(b) above may not be a transfer for consideration (for example, sales or exchanges of the Option are not permitted).

  

	 	(e)	Family Members and Approved Transferees may not retransfer this Option in whole or in part other than by will or by the laws of descent and distribution, and a transferred Option
may be exercised during the lifetime of the transferee only by such transferee. 

  

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	 	(f)	Following any transfer hereunder, the Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to the transfer. The term
“Optionee” shall be deemed to refer to the transferee. The events of termination of employment in Section 5(e) shall continue to be applied with respect to the original Optionee rather than the transferee, following which the Option shall
be exercisable by the transferee only to the extent and for the periods specified in Section 5(e). 

  

	7.	Adjustment of Shares. In the event of a subdivision of the outstanding shares of common stock of the Company, a declaration of a dividend payable in Shares, a declaration of
a dividend payable in a form other than Shares in an amount that has a material effect on the value of Shares, a combination or consolidation of the outstandings shares of common stock (by reclassification or otherwise) into a lesser number of
Shares, a recapitalization, a spin-off or a similar occurrence, the Company shall make appropriate adjustments in the number of Shares covered by the Option and in the Exercise Price of the Option. 

  
 In the event that the Company is a party to a merger, consolidation or other
reorganization agreement which would constitute a “Change in Control”, such agreement may provide, subject to the provisions of Section 6(e)(i) of the Plan (which provides for the immediate acceleration of the vesting and exercisability of
all shares subject to this Option), (i) for the assumption of this Option by the surviving corporation or its parent or for continuation of the Option by the Company (if the Company is a surviving corporation), or (ii) for cancellation of the Option
upon payment of a cash settlement equal to the difference between the amount to be paid for one Share under such agreement and the then-current Fair Market Value of such Share on an unrestricted basis, or (iii) in the event the agreement does not
provide for either of the events specified in subparagraphs (i) and (ii) above, the cancellation of this Option not exercised prior to the effective date of such merger, consolidation or other reorganization, in all cases without the Optionee’s
consent. 
  
 Except as provided in this Section, Optionee shall
have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment or any dividend or any other increase or decrease in the number of share of stock of any class. Any issue by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to the Option. The grant of this Option
pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or
transfer all or any part of its business or assets. 
  

	8.	Taxation Upon Exercise of Option. Optionee understands that upon exercise of this Option, Optionee will generally recognize income for tax purposes in an amount equal to the
excess of the then Fair Market Value of the Shares over the exercise price. The Company will be required to withhold tax from Optionee’s current compensation with respect to such income; to the extent that Optionee’s current compensation
is insufficient to satisfy the withholding tax liability, the Company may require the Optionee to make a cash payment to cover such liability as a condition of exercise of this Option. The Optionee may elect to pay such tax by (i) requesting the
Company to withhold a sufficient number of shares from the 

  

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 shares otherwise due upon exercise or (ii) by delivering a sufficient number of shares of the Company’s common stock
which have been previously held by the Optionee for such a period of time as the Committee may require. The aggregate value of the shares withheld or delivered, as determined by the Committee must be sufficient to satisfy all such applicable taxes,
except as otherwise permitted by the Committee. If the Optionee is subject to Section 16 of the Securities Exchange Act of 1934, as amended, the Optionee’s election must be made in compliance with rules and procedures established by the
Committee. 
  
 Grant Date: January 19, 2004 
  

			
	GREATER BAY BANCORP
		
	By:	 	  

	 	 	Byron A. Scordelis
	 	 	Chief Executive Officer

  
 Optionee represents that
Optionee is familiar with the terms and provisions of this Option and hereby accepts the same subject to all the terms and provisions hereof. Optionee hereby agrees to accept as binding, conclusive and final all decision, or interpretations of the
Board of Directors or its duly appointed Committee upon any questions arising under the Plan. 
  

			
	Dated:                             	 	  

	 	 	Optionee

  

 Page 5 of 5Form of Restricted Stock Award Agreement

 Exhibit 10.8 
  
 RESTRICTED STOCK AWARD AGREEMENT 
  
 This Restricted Stock Award (the “Award”) is granted as of «Grant_Date» by Greater Bay Bancorp
(the “Company”), to «Fname» «Lname» (the “Grantee”) in accordance with the following terms and conditions: 
  

	 	1.	Award. The Company hereby irrevocably awards the Grantee «RS_Granted» shares of Common Stock of the Company (the “Shares”), no par value,
pursuant to the Greater Bay Bancorp Amended and Restated 1996 Stock Option Plan, as the same may from time to time be amended (the “Plan”), upon the terms and conditions and subject to the restrictions herein. All capitalized terms not
defined herein shall have the meanings given them in the Plan.  

  

	 	2.	Term. Subject to earlier termination as provided in the Plan, this Award shall terminate on «Expiration_Date», in accordance with the provisions of
Section 6(a) below. 

  

	 	3.	Restrictions. This Award shall be subject to the risk of forfeiture set forth in Section 4 and the restrictions on transfer set forth in Sections 5.

  

	 	4.	Termination of Service and Forfeiture of Restricted Stock. In the event that the Grantee’s Service as an Employee terminates: 

  

	 	(a)	As a result of such Grantee’s death or Total and Permanent Disability, or in the event of Grantee’s Retirement, the term of the Award shall expire, and any
Restrictions on the Award immediately shall lapse upon such death, Total and Permanent Disability or Retirement, but not later than the expiration date specified in Section 2 above. 

  

	 	(b)	As a result of termination by the Company for cause as defined in the Plan, or any other event resulting in the termination of Grantee’s Service not specified in Section
4(a) above, the Award shall expire 30 days after the Company’s notice or advice of such termination is dispatched to Grantee. In the event that a Grantee’s Service terminates for cause, or any other event resulting in the termination of
Grantee’s Service not specified in Section 4(a) above, the Shares subject to the Award shall be earned only to the extent such Shares were earned as of the date of such termination. In such event, the Grantee shall forfeit the right to earn any
Restricted Stock subject to the Award as to which vesting has not yet occurred, and the Restricted Stock so forfeited shall be returned to the Company. 

  

	 	5.	Restrictions on Transfer. This Award and all rights hereunder may not be transferred by the Grantee other than by will, by written beneficiary designation or by the
laws of descent and distribution. During the lifetime of the Grantee, Restricted Stock may only be earned by and issued to the Grantee. No non-permitted transferee of a Grantee shall have any right in or claim to any assets of the Plan, nor shall
the Company be subject to any claim for benefits hereunder. 

  

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	 	6.	Lapse of Restrictions. 

  

	 	(a)	Longevity Restrictions. Subject to forfeiture as provided in Section 4, the Restrictions shall lapse with respect to 100% of the Shares covered in this Award, in the
following non-cumulative installments: 

  

	 	(1)	such Restrictions shall lapse with respect to 20% of the Shares on «Vest1Date»; 

  

	 	(2)	such Restrictions shall lapse with respect to 20% of the Shares on «Vest2Date»; 

  

	 	(3)	such Restrictions shall lapse with respect to 20% of the Shares on «Vest3Date»; 

  

	 	(4)	such Restrictions shall lapse with respect to 20% of the Shares on «Vest4Date»;  

  

	 	(5)	such Restrictions shall lapse with respect to 20% of the Shares on «Vest5Date».  

  

	 	(b)	Change in Control. Upon a Change in Control, all Restrictions shall lapse. 

  

	 	(c)	Delivery of Certificates; Withholding Taxes. Upon the lapse of the Restrictions, the Company shall cause new certificates with respect to such Shares to be issued and
delivered to the Grantee, free from the legend provided for in Section 7 and any of the other Restrictions. Notwithstanding the foregoing, no such new certificate shall be delivered to the Grantee unless and until the Grantee shall have paid to the
Company in cash the full amount of all federal and state withholding or other employment taxes applicable to the taxable income of the Grantee resulting from the Award of Restricted Stock or the lapse of the Restrictions or withholding is otherwise
provided for to the satisfaction of the Board of Directors. 

  

	 	(d)	Treatment of Fractional Shares. For vesting purposes, any fractional Shares shall be rounded down to the nearest whole number, provided that such fractional Shares
shall be aggregated and vested on the date when all Restrictions lapse or expire. 

  

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	 	(e)	Action by Board of Directors. The Board of Directors of the Company shall have the authority, in its sole and absolute discretion, to accelerate the time at which any
or all Shares granted hereby shall vest, or to remove any or all of the Restrictions applicable to such Shares whenever the Board of Directors may determine that such action is appropriate by reason of changes to applicable tax or other laws.

  

	 	7.	Legend. Until all Restrictions lapse and new certificates are issued pursuant to Section 6(c), certificates representing shares of Restricted Stock issued pursuant to
this Agreement shall bear the following legend: 

  
 “The shares represented by this certificate are subject to reacquisition by Greater Bay Bancorp, and such shares may not be sold or otherwise transferred except pursuant to the provisions of the Restricted Stock Award Agreement by and
between Greater Bay Bancorp and the registered owner of such shares.” 
  

	 	8.	Certificate for the Shares.  

  

	 	(a)	Until all Restrictions have lapsed, the Secretary or such other escrow holder as the Board of Directors may appoint shall retain custody of the stock certificates
representing the Restricted Stock subject to the Award; provided, however, that in no event shall the Grantee retain physical custody of any certificates representing shares of Restricted Stock awarded to him or her. 

  

	 	(b)	The Grantee further agrees that simultaneously with his or her execution of this Agreement, he or she shall execute stock powers in favor of the Company with respect to the
Shares granted hereunder and that he or she shall promptly deliver such stock powers to the Company. 

  

	 	9.	Rights as a Stockholder. Upon the delivery of Restricted Stock to the escrow holder pursuant to Section 8(a), the Grantee shall have all the rights of a stockholder of
the Company with respect to the Restricted Stock, subject to the Restrictions and the Restricted Stock Agreement, including the right to vote the Restricted Stock and the right to receive all dividends or other distributions paid or made with
respect to the Restricted Stock; provided, however, that any additional Shares of Restricted Stock to which Grantee shall be entitled as a result of stock dividends, stock splits or any other form of recapitalization in respect of Shares of
Restricted Stock subject to Restrictions shall also be subject to the Restrictions until the Restrictions on the underlying shares of Restricted Stock lapse or expire. Grantee acknowledges that any dividends paid to Grantee with respect to any Share
of the Restricted Stock prior to the lapse of any Restrictions with respect to such Share shall be compensation income rather than dividend income unless Grantee has made an election under Section 83(b) of the Code with respect to such Share.

  

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	 	10.	Removal of Legends on Certificates and Return of Stock Powers. When the Company delivers to the Grantee the certificates in respect of Shares distributed pursuant to
Section 6(c) above, the Grantee shall also receive back the related stock power held by the Company pursuant to Section 8(b) above. The distributed Shares shall be free of the Restrictions and such certificate shall not bear the legend provided for
in Section 7 above. 

  

	 	11.	Adjustments for Capital Changes. In the event of any change in the outstanding shares of the Company’s Stock resulting from any stock dividend or split,
recapitalization, merger, consolidation, spin-off, reorganization, combination or exchange of shares, or other similar capital adjustment, or other increase or decrease in such shares without receipt or payment of consideration, the Board of
Directors shall adjust this Award in accordance with the Plan. 

  

	 	12.	Plan and Plan Interpretations as Controlling. The terms of the Plan are incorporated herein by reference and a copy of the Plan as currently in effect is attached
hereto. This Award and the terms and conditions herein set forth are subject in all respects to the terms and conditions of the Plan, which are controlling. All determinations and interpretations of the Board of Directors shall be binding and
conclusive upon the Grantee or his or her legal representatives or beneficiary with regard to any questions arising hereunder or under the Plan. Terms used in this Agreement have the same meanings as the definitions of those terms in the Plan.

  

	 	13.	Grantee Employment. Nothing in this Agreement shall limit the right of the Company to terminate the Grantee’s employment, or otherwise impose upon the Company any
obligation to employ or accept the services of the Grantee. 

  

	 	14.	Code Section 83(b) Election. Grantee agrees to notify the Company immediately in writing in the event Grantee makes an election under Section 83(b) of the
Internal Revenue Code (or any successor provision) or corresponding provisions of state or local tax laws with respect to this Award. In that event, any required withholding and/or employment tax payments as a result of such election shall thereupon
be made. Such withholding may be from the Grantee’s compensation from the Company, from cash supplied by the Grantee, or (to the extent permitted by law) Restricted Stock otherwise issuable to the Grantee. 

  

	 	15.	Assignment. The terms of this Agreement shall be binding upon the beneficiaries, executors, administrators, heirs and successors of the Grantee.

  

	 	16.	Securities Laws. The issuance of Restricted Stock shall be subject to any federal or state securities law restrictions, as the Board of Directors is advised by its
counsel. 

  

	 	17.	Notices. Any notices provided for in this Award or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices
delivered to Grantee, five (5) days after deposit in the United States mail, postage prepaid, addressed to Grantee at the address set forth in the records of the Company or at such other address as is designated by written notice to the Board of
Directors. 

  

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	 	18.	Separate Advice and Representation. The Company is not providing Grantee with advice, warranties, or representations regarding any of the legal, tax or business
effects to Grantee with respect to the Plan or this Award. Grantee is encouraged to seek legal, tax and business advice from Grantee’s own legal, tax and business advisers as soon as possible. By accepting this Award and the Shares covered
thereby, Grantee acknowledges that Grantee has not relied on legal, tax or business advice from the law firm of Manatt, Phelps & Phillips, LLP (or any of its partners, employees or independent contractors) with respect to the Plan or this Award
and that such law firm represented solely the Company with respect to the Plan and this Award. Grantee specifically waives any actual or apparent conflict of interest of, and releases from any liability, such law firm (and its partners, employees
and independent contractors) with respect to the Plan and this Award. By accepting this Award and the Shares covered thereby, and by signing this instrument, Grantee acknowledges that Grantee is familiar with the terms of the Agreement and the Plan,
that Grantee has been encouraged by the Company to discuss the Award and the Plan with Grantee’s own legal, tax and business advisers, and that Grantee agrees to be bound by the terms of this Agreement and the Plan. 

  
 Dated as of this      day
of                , 2004. 
  

			
	Greater Bay Bancorp
		
	By:	 	  

	 	 	 Peggy Hiraoka, Executive Vice President
 Human
Resources

  
 The undersigned:

  

	 	(a)	Acknowledges receipt of the foregoing Award and understands that all rights and liabilities with respect to this Award are set forth in this Agreement and the Plan attached
hereto; 

  

	 	(b)	Agrees that, in consideration of this Award, Grantee will comply with all the terms and conditions of this Agreement and the Plan; 

  

	 	(c)	Acknowledges that as of the date of this Award, it sets forth the entire understanding between the undersigned Grantee and the Company regarding the acquisition of the
Restricted Stock and supersedes all prior oral and written agreements on that subject. 

  
 Dated as of this              day of
                , 2004. 
  

			
	By:	 	  

	 	 	«Fname» «Lname»
		
	SSN :	 	«SSN»

  

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