EXHIBIT 10.1

FIRST AMENDMENT TO THE
SALARY CONTINUATION AGREEMENT
BETWEEN HERITAGE BANK AND KEVIN P. CLARK

PARTIES:

Heritage Bank (the Company)

Kevin P. Clark (the Executive)

RECITALS:

1.

The Parties entered into the Salary Continuation Agreement on January 1, 1996,
and the Agreement has not been previously amended.

2.

At this time the Parties wish to amend the Agreement to reflect a six-month
waiting period for a distribution so long as the Executive remains a key
employee.

NOWTHEREFOR, effective upon signing the Agreement is hereby amended as follows:

AMENDMENT:

Sections 2.1.2, 2.2.2, 2.3.2, 2.4.2 and 3.1.2, are all hereby amended with the
addition of a new last sentence, to read as follows:

“Notwithstanding the preceding, if at that time of the payment of any or all
benefits pursuant to this Agreement, the Executive is a key employee, within the
meaning of Code Sections 409A(a)(2)(B)(i) and 416(i), the payment of such
benefits shall not commence in less than six month’s following the Executive’s
separation from service.”

DATED this 20th day of December, 2005.

Executive: Company:

Heritage Bank, FSB   /s/   Kevin P. Clark

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    By:    /s/   Steve L. Feurt

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Kevin P. Clark   Steve L. Feurt, Executive Vice President

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