Document:

EX-4.2

 Exhibit 4.2 
 OFFICERS’ CERTIFICATE OF 
 DESIGNATION OF TERMS OF SECURITIES

 Each of the undersigned officers (each an “Officer” and collectively the “Officers”) of Radian Group
Inc., a Delaware corporation (the “Company”), hereby certifies pursuant to Sections 2.02 and 2.05 of the Senior Indenture dated as of June 7, 2005 (the “Indenture”), by and between the Company and U.S. Bank National
Association (the “Trustee”), as successor trustee to Wells Fargo Bank, NA, relating to the Company’s 9.000% Senior Notes due 2017 (the “Notes”), that: 
 1. Pursuant to the authority granted to them by the Company’s Board of Directors on February 13, 2013, the Officers do hereby approve the issuance by the Company of up to $195,176,000 in
aggregate principal amount of securities in exchange for the same principal amount of the Company’s existing 9.000% Senior Notes due 2017. The new securities are hereby approved and established as a series of securities (the “Notes”)
under Section 2.02(b) of the Indenture, titled “9.000% Senior Notes due 2017” and having the specific terms set forth on Attachment A hereto, “Terms of the Securities.” 

2. Each Officer has read all of the provisions of the Indenture relating to the conditions precedent to, or covenants applicable to, the
issuance of securities under the Indenture, and the definitions in the Indenture relating thereto, and the authentication by the Trustee of the Global Security therefor. 
 3. Each Officer has examined the Indenture and such other related documents as such Officer deemed necessary or appropriate to enable him to give this Officers’ Certificate. 

4. In each Officer’s opinion, such Officer has made such examination or investigation as is necessary to enable such Officer to
express an informed opinion as to whether all conditions precedent provided for in the Indenture relating to the issuance of the Notes and the authentication by the Trustee of the Global Security therefor (including any covenant compliance with
which constitutes a condition precedent) have been complied with. 
 5. In each Officer’s opinion, all such conditions
precedent to the issuance of the Notes under the Indenture have been complied with. 
 All capitalized terms in this
Officers’ Certificate not otherwise defined in this Officers’ Certificate (including Attachment A hereto) have the meanings assigned to them in the Indenture. 
 [Signature Page Follows] 

 IN WITNESS WHEREOF, the undersigned have hereunto signed their names as of this
28th day of February, 2013. 
  

			
	RADIAN GROUP INC.
		
	By:	 	 /s/ C. Robert Quint

		 	C. Robert Quint, Executive Vice President and Chief Financial Officer
		
	By:	 	 /s/ Edward J. Hoffman

		 	Edward J. Hoffman, Executive Vice President and General Counsel
		 	

 I, Tami Bohm, the duly elected and incumbent Assistant Secretary of the Company, do hereby certify
on behalf of the Company that: (i) C. Robert Quint is the duly elected, qualified and acting Executive Vice President and Chief Financial Officer of the Company, (ii) Edward J. Hoffman is the duly elected, qualified and acting Executive
Vice President and General Counsel of the Company, and (iii) the signatures of C. Robert Quint and Edward J. Hoffman set forth above are their genuine signatures. 
 IN WITNESS WHEREOF, the undersigned has hereunto signed her name as of this 28th day of February, 2013. 

 

			
	RADIAN GROUP INC.
		
	By:	 	 /s/ Tami Bohm

		 	Tami Bohm, Assistant Secretary

 [Signature page to Officers’ Certificate of Designation of Terms of Securities]
 

 Attachment A 
 Terms of the Securities 
 RADIAN GROUP INC. 

 

			
	(1) The title of the Securities	  	9.000% Senior Notes due 2017 (the “Notes”)
		
	(2) The limit upon the aggregate principal amount of the Notes which may be authenticated and delivered under the Indenture (except for Notes that are authenticated and delivered
upon registration of, transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 2.09, 2.10, 2.12, 3.06 or 10.05 of the Indenture or any Notes that, pursuant to Section 2.05 of the Indenture, are deemed never to have been
authenticated and delivered under the Indenture)	  	$195,176,000 in aggregate principal amount of the Notes are to be authenticated and delivered under the Indenture.
		
	(3) The date on which the principal of and premium, if any, on the Notes is payable (or the method for determining this date)	  	The date on which the principal of the Notes shall be payable is June 15, 2017, unless such date is not a Business Day, in which case such payment will be made on the next
succeeding day that is a Business Day, and no interest will accrue for the period from and after such specified principal payment date. Payment in respect of any such delay will have the same force and effect as if made on the date the payment was
originally payable. No premium will be paid on the Notes at the time they become so payable.
		
	(4) With respect to interest on the Notes:	  	
		
	 (a) The rate at which the Notes will bear interest (or the method for calculating such rate)
	  	The unpaid principal amount of the Notes shall bear interest at a rate of 9.000% per annum, until paid or duly provided for.
		
	 (b) The date from which interest shall accrue (or the method by which such date shall be determined)
	  	Interest on the Notes will accrue from and including the most recent Interest Payment Date to which interest has been paid or duly provided for or, in the case of the first interest
payment hereunder, from and including the date of issuance. Payments of interest on the Notes will include interest accrued to, but excluding, the respective Interest Payment Dates.

			
	 (c) The Interest Payment Dates on which interest shall be payable
	  	Interest on the Notes will be payable semiannually in arrears on December 15 and June 15 of each year, beginning June 15, 2013.
		
	 (d) The right of the Company to defer or extend an Interest Payment Date
	  	If an Interest Payment Date falls on a day that is not a Business Day, the interest payment will be made on the next succeeding day that is a Business Day, and no interest on such
payment will accrue for the period from and after such Interest Payment Date. Payment in respect of any such delay will have the same force and effect as if made on the date the payment was originally payable.
		
	 (e) The record date for interest payable on the Notes on any Interest Payment Date and the basis upon which interest shall be
calculated
	  	The record date for interest payable on the Notes will be December 1 or June 1, as the case may be, immediately preceding the applicable Interest Payment Date. Interest payments
shall be computed and paid on the basis of a 360-day year of twelve 30-day months.
		
	(5) The place where the principal of, premium, if any, and interest on the Notes shall be payable, where Notes may be surrendered for registration of transfer or exchange pursuant
to Section 2.06 of the Indenture and notices and demands to or upon the Company in respect of the Notes and the Indenture may be served and notices to holders of the Notes pursuant to Section 11.02 of the Indenture will be
published	  	 The Paying Agent initially shall be the Trustee. Payments in respect of the Notes shall be made at the office of the Paying Agent, which
is located at 60 Livingstone Avenue, St. Paul, MN 55107.
  
 The place where
Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Company in respect of the Notes and the Indenture may be served shall be the office or agency of the Company maintained for that
purpose in the Borough of Manhattan, the City of New York. This office currently is located at 100 Wall Street, New York, NY 10005.
  

Any notices required to be given to Holders of the Notes will be given to the Depositary of the Notes, which initially shall be the Depository Trust
Company (“DTC”). Conveyance of notices and other communications by DTC to direct participants, by direct participants to indirect participants, and by direct participants and indirect participants to beneficial owners of the Notes will be
governed by arrangements among them, subject to any statutory requirements as may be in effect from time to time.

  
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	(6) The terms and conditions (including the periods, price or currency) upon which the Notes may be redeemed, in whole or in part, at the option of the Company (and, if other than
as set forth in Section 3.03 of the Indenture, the manner in which the Notes shall be selected for redemption if less than all of the Notes are to be redeemed)	 	 The Company may redeem some or all of the Notes, in its sole discretion, at any time or from time to time at a redemption price (the
“Redemption Price”) equal to the greater of:
  
 •      100% of the aggregate principal amount of the Notes to be redeemed; or
  

•      the sum of the present value of the remaining scheduled payments of
principal of and interest on the Notes to be redeemed (not including any portion of such payments of interest accrued to the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Adjusted Treasury Rate (defined below) plus 50 basis points, as calculated by an Independent Investment Banker.

		
		 	In each case, the Redemption Price shall be payable together with accrued and unpaid interest on the Notes to be redeemed on the redemption date.
		
		 	“Adjusted Treasury Rate” means, with respect to any redemption date:
		
		 	 •      the yield, under the heading which represents the average for the immediately preceding
week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on
actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before
or after the Remaining Life, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated or extrapolated from such yields on a straight
line basis, rounding to the nearest month); or

  
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		 	 •      if such release (or any successor release) is not published during the week preceding
the calculation date or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of
its principal amount) equal to the Comparable Treasury Price for such redemption date.

		
		 	The Adjusted Treasury Rate shall be calculated on the second business day preceding the redemption date.
		
		 	“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of
the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes to be
redeemed, or “Remaining Life”.
		
		 	“Comparable Treasury Price” means (1) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest
Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.
		
		 	“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company.

  
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		 	“Reference Treasury Dealer” means:
		
		 	 •      Merrill Lynch, Pierce, Fenner & Smith Incorporated and three other nationally
recognized investment banking firms that are primary U.S. Government securities dealers specified from time to time by the Company and their respective successors; provided that, if any of the foregoing ceases to be a primary U.S. Government
securities dealer in New York City (a “Primary Treasury Dealer”), the Company will substitute another Primary Treasury Dealer; and

		
		 	 •      any other Primary Treasury Dealer selected by the Company.

		
		 	“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Independent
Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker at 3:30 p.m., New York City time, on the third
business day preceding such redemption date.
		
		 	Notice of any redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each Holder of the Notes to be redeemed. If less than all of the
Notes are to be redeemed, the Trustee will select which Notes are to be redeemed on a pro rata basis, by lot or by such method as the Trustee deems fair and appropriate.
		
		 	If the Company has given notice of redemption, the Notes so to be redeemed shall, on the date of redemption, become due and payable at the Redemption Price together with any accrued
interest thereon, and from and after such date (unless the Company defaults in the payment of the Redemption Price and accrued interest) such Notes shall cease to bear interest. If any Note called for redemption shall not be paid upon surrender
thereof for redemption, the principal shall, until paid, bear interest from the date of redemption at 9.000% per year.

  
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		  	If the redemption date of the Notes falls on a day that is not a Business Day, the payment of interest and principal may be made on the next succeeding Business Day, and no interest
on such payment will accrue for the period from and after the earlier redemption date. Interest payments for the Notes will include accrued interest from and including the date of issue or from and including the last date in respect of which
interest has been paid (or as otherwise provided in (4)(b) above), as the case may be, to, but excluding, the redemption date.
		
	(7) The obligation, if any, of the Company to redeem or purchase the Notes:	  	
		
	 (a) Pursuant to any sinking fund or analogous provisions
	  	Not Applicable.
		
	 (b) Upon the happening of a specified event or at the option of a holder of the Notes (including the applicable terms and conditions upon which the
Notes shall be redeemed or purchased)
	  	Not Applicable.
		
	(8) The denominations in which the Notes shall be issuable	  	The Notes shall be issuable in denominations of $1,000 or integral multiples of $1,000.
		
	(9) The currency in which the principal, of, premium, if any, and interest on the Notes shall be payable or in which the Notes shall be denominated (including any applicable
provisions) if other than U.S. dollars	  	Not Applicable.
		
	(10) If principal, premium, if any, or interest on the Notes is payable, at the election of the Company or a Holder of the Notes, in a currency other than that in which the Notes
are denominated or designated to be paid, the currency in which such payments are to be made, the terms and conditions of such payment and the manner in which the exchange rate shall be determined	  	Not Applicable.
		
	(11) If the manner in which payments of principal, premiums, if any, or interest on the Notes is to be made shall be determined with reference to an index, formula or other method,
the index, formula or other method by which such amounts shall be determined (including any special voting or defeasance provisions)	  	Not Applicable.

  
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	(12) If other than the principal amount, the portion of the principal amount of the Notes which shall be payable upon declaration of acceleration pursuant to Section 6.02 of the
Indenture or the method by which such portion shall be determined	 	Not Applicable.
		
	(13) The Person to whom any interest on the Notes shall be payable	 	Subject to Section 2.03(b) of the Indenture, interest will be paid to the Persons in whose names the Notes are registered at the close of business on the regular record date
immediately preceding the date fixed for payments of interest on the Notes. Any interest that is not punctually paid or duly provided for will cease to be payable to Holders on the record date immediately preceding the date fixed for payments of
interest on the Notes and will be paid to the Persons who are Holders on a subsequent special record date, in each case at the rate set forth in the Notes.
		
	(14) Any provisions granting special rights to Holders of the Notes upon the occurrence of a specified event	 	None, other than as set forth in the Indenture.
		
	(15) Any deletions from, modifications of or additions to the Events of Default set forth in Section 6.01 of the Indenture or Covenants of the Company set forth in Article 4 of
the Indenture	 	 The following Events of Default shall be added to Section 6.01 of the Indenture:

 

1.       a default on the payment of any scheduled principal of the
Company’s Indebtedness or any Indebtedness of any of the Company’s Designated Subsidiaries (other than the Notes and non-recourse debt) having an aggregate principal amount outstanding of at least $50 million, when due and payable after
giving effect to any applicable grace period; or

		
		 	 2.       a default in the performance of any other term or provision of any of the
Company’s Indebtedness or any Indebtedness of any of the Company’s Designated Subsidiaries (other than the Notes and non-recourse debt) having an aggregate principal amount outstanding of at least $50 million;

  
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		 	where, in the case of either of the foregoing, such default results in such Indebtedness becoming or being declared due and payable before the date on which it would otherwise
become due and payable, and such acceleration shall not have been rescinded or annulled, or such Indebtedness shall not have been discharged, within a period of 15 days after there has been given to the Company by the Trustee or to the Company and
the Trustee by the holders of at least 25% in aggregate principal amount of the Notes then outstanding, a written notice specifying such default or defaults.
		
		 	The Notes will include the following additional covenants:
		
		 	 •      Neither the Company nor any of its Subsidiaries shall create, assume, incur or permit
to exist any Indebtedness secured by any lien on the present or future capital stock of any Designated Subsidiary unless the Notes, and at the Company’s election, any other Indebtedness of the Company that is not subordinate to the Notes and
with respect to which the governing instruments require, or pursuant to which the Company is otherwise obligated, to provide such security, are secured equally and ratably with such Indebtedness for at least the time period this Indebtedness is so
secured. Notwithstanding the foregoing, the Company may, without securing the Notes or such other Indebtedness, incur liens existing on such capital stock before the acquisition thereof by the Company or any Designated Subsidiary so long as
(1) such lien was in existence prior to, and is not created in contemplation of or in connection with, such acquisition, (2) such lien will not apply to capital stock of any other Designated Subsidiary and (3) such lien will secure
only those obligations which it secures on the date of such acquisition, and extensions, renewals and replacements of the foregoing liens that do not increase the outstanding principal amount secured by such liens and do not extend to capital stock
of any other Designated Subsidiary.

  
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		 	 •      Neither the Company nor any of the Designated Subsidiaries shall issue, sell,
transfer or dispose of capital stock of a Designated Subsidiary, except to the Company or one of its Subsidiaries that agrees to hold the transferred shares subject to the terms of this sentence, unless (1) the Company disposes of the entire
capital stock of the Designated Subsidiary at the same time for cash or property which, in the opinion of the Company’s board of directors, is at least equal to the fair market value of the capital stock or (2) the Company sells, transfers
or otherwise disposes of any capital stock of a Designated Subsidiary for at least fair market value (in the opinion of the Company’s board of directors) and, after giving effect thereto, the Company and its Subsidiaries would own more than 80%
of the issued and outstanding voting stock of such Designated Subsidiary.

		
		 	“Designated Subsidiary” means any present or future consolidated Subsidiary, the consolidated stockholders’ equity of which constitutes at least 15% of the
Company’s consolidated stockholders’ equity.
		
		 	“Indebtedness” means, with respect to any Person:
		
		 	 1.       the principal of, and any premium and interest on, indebtedness of the Person for
money borrowed and indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of which that Person is responsible or liable;

		
		 	 2.       all capitalized lease obligations of that Person;

		
		 	 3.       all obligations of that Person issued or assumed as the deferred purchase price of
property, all conditional sale obligations and all obligations under any title retention agreement (but excluding trade accounts payable arising in the ordinary course of business and deferred purchase price due and payable within 90
days);

  
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		  	 4.      all obligations of that Person for the reimbursement of any obligor on any letter of
credit, banker’s acceptance or similar credit transaction, other than obligations with respect to letters of credit securing obligations entered into in the ordinary course of business;

		
		  	 5.      all obligations of that Person under interest swap agreements, interest rate cap agreements
and interest collar agreements and other agreements or arrangements designated to protect that Person against fluctuations in interest rates;

		
		  	 6.      all obligations of the type referred to above of other Persons and all dividends of other
Persons for which that Person is responsible or liable as obligor, guarantor or otherwise, except Indebtedness shall not include (i) endorsements for collection or deposit in the ordinary course of business or (ii) financial guaranties
made by an insurance company (including a financial guaranty company) as an incident to the conduct of its insurance business and in the ordinary course of such business;

		
		  	 7.      all obligations of the type referred to above of other Persons secured by any lien on any
property or asset of that Person; and

		
		  	 8.      any amendments, modifications, refundings, renewals or extensions of any indebtedness or
obligation described above.

		
		  	Notwithstanding the foregoing, for the purposes of the additional Events of Default set forth in clauses (1) and (2) under Events of Default above, (i) Indebtedness
of a Person will not include any Conduit Indebtedness or any Insured Indebtedness of that Person or any guaranty of that type of Indebtedness by such Person in the ordinary course of its business, and (ii) in connection with the purchase by a
Person of any business, the term Indebtedness will exclude post-closing payment

  
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		  	 adjustments to which the seller may become entitled to the extent such payment is determined by a final closing so long as at the
time of closing, the amount of any such payment is not determinable and, to the extent such payment thereafter becomes fixed and determined, the amount is paid when due.

 
 “Conduit Indebtedness” means, with respect to a Person, Indebtedness of a
special purpose entity or Subsidiary of such Person that is consolidated on such Person’s financial statements in accordance with GAAP so long as (i) the proceeds of such debt are used by such special purpose entity or Subsidiary to make loans
to, or to purchase assets from, another Person that is not an affiliate of such Person, in the ordinary course of business and (ii) such Indebtedness and/or any payment with respect to accounts receivable and other assets underlying such
Indebtedness are guaranteed by the former Person or one or more of its Subsidiaries, in the ordinary course of business.
  
 “Insured Indebtedness” means, with respect to a Person, any Indebtedness of such Person or its Subsidiaries that is guaranteed by such Person or another Subsidiary of such Person that is an
insurance company (including a financial guaranty company) so long as the proceeds of such Indebtedness are used to purchase securities, instruments, notes or other obligations issued or owed by a Person that is not an affiliate of such Person, in
the ordinary course of business.

		
	(16) With respect to Notes held by non-U.S. Persons:	  	
		
	 (a) Circumstances under which the Company will pay additional amounts on the Notes in respect of taxes, assessments and similar charges withheld or
deducted (including applicable procedures and documentation)
	  	Not Applicable.

  
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	 (b) Whether the Company will have the option to redeem the Notes rather than pay such additional amounts (and the terms of any such
option)
	  	Not Applicable.
		
	(17) The form of the Notes	  	The Notes shall be in substantially the form set forth in Exhibit A-1 hereto.
		
	(18) The applicability to the Notes of Sections 9.02 (Legal Defeasance and Discharge) and 9.03 (Covenant Defeasance) of the Indenture or such other means of legal or covenant
defeasance as may be specified for the Notes	  	Sections 9.02 and 9.03 of the Indenture shall apply to the Notes.
		
	(19) The identity of the Registrar, Conversion Agent (if any) and any Paying Agent, if other than the Trustee	  	The Trustee will serve as the initial Registrar and initial Paying Agent with respect to the Notes.
		
	(20) If the Notes will be issued, in whole or in part, in global form:	  	
		
	 (a) The Depositary for the Notes
	  	The Notes will be issued in the form of one or more Global Securities. On the date of closing of the sale of the Notes, each Global Security will be deposited with DTC and
registered in the name of Cede & Co., as DTC’s nominee.
		
	 (b) Whether beneficial owners of interests in the Notes in global form may exchange such interests for certificated Notes (to be registered in the
names of or to be held by such beneficial owners or their nominees and to be of like tenor of any authorized form and denomination); and if other than as provided in Section 2.09 of the Indenture, the circumstances under which an exchange may
occur
	  	Except under the circumstances described below, the Notes represented by the Global Security or Global Securities will not be exchangeable for, and will not otherwise be issuable
as, Notes in certificated form and the owners of beneficial interests in a Global Security will not be entitled to receive physical delivery of certificated Notes and will not be considered the registered holders of the Notes for any purpose,
including receiving payments of principal or interest. The Global Securities may not be transferred except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or
to a Successor Depositary or its nominee.
		
		  	A Global Security shall be exchangeable for certificated Notes registered in the names of Persons other than the Depositary or its nominee only if: (1) DTC notifies the Company that
it is

  
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		  	unwilling or unable to continue as Depositary or if at any time, DTC ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, at a time
when the Depositary is required to be so registered in accordance with applicable law or regulation and, in either case, no successor Depositary shall have been appointed by the Company within 60 days; (2) the Company in its sole discretion
determines that the Global Securities shall be so exchangeable; or (3) if an Event of Default under the Indenture occurs.
		
		  	The certificated Notes issued in exchange for Global Securities shall be in the same minimum denominations and be of the same aggregate principal amount and tenor as the portion
of each Global Security to be exchanged.
		
	(21) The designation of the Depositary	  	Each Global Security will be registered in the name of Cede & Co., as DTC’s nominee.
		
	(22) Any restrictions on the registration, transfer or exchange of the Notes	  	The Notes will be issued in the form of one or more Global Securities. DTC facilitates the settlement among participants of securities transactions, such as transfers and
pledges, in deposited securities through electronic computerized book-entry changes in participants’ accounts. Transfers of ownership interests in the Notes are to be accompanied by entries made on the books of participants acting on behalf of
beneficial owners of the Notes. The rules applicable to DTC and its participants are on file with the SEC. More information about DTC can be found at its Internet Website at http://www.dtcc.com. The Company has placed no additional restrictions on
the registration, transfer or exchange of the Notes other than as set forth in the Indenture.
		
	(23) Any certificates or other documents that must be received or conditions that must be satisfied, other than those specified in the Indenture, before the Notes may be issued or
delivered (whether upon original issuance or upon exchange of a temporary Note or otherwise) or any installment of principal or interest may be paid	  	None.

  
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	(24) The terms and conditions of any right to convert or exchange the Notes into or for other securities or property of the Company	  	The Notes shall not be convertible into or exchangeable for any other securities or property of the Company.
		
	(25) Whether the Notes are secured or unsecured (if secured, the security and related terms)	  	The Notes shall be the direct, unsecured obligations of the Company and will rank equally with each other and with all other existing and future unsecured and unsubordinated
indebtedness of the Company.
		
	(26) Any other terms applicable to the Notes (which shall not be inconsistent with the provisions of the Indenture), including any terms which may be required by or advisable under
United States laws or regulations or advisable (as determined by the Company) in connection with the marketing of the Notes	  	None.

  
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 Exhibit A-1 
 (Face of Note) 
 9.000% Senior Note due 2017 

THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND, UNLESS AND UNTIL IT IS EXCHANGED FOR SECURITIES IN DEFINITIVE FORM IN ACCORDANCE WITH THE INDENTURE, (I) IS NOT TRANSFERABLE EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, OR BY A NOMINEE OF
THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR SUCCESSOR NOMINEE, AND (II) MAY NOT BE EXCHANGED OR CANCELLED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED
IN THE INDENTURE. 
  

			
	 CUSIP No: —
	  	$—

 RADIAN GROUP INC. 
 promises to pay to Cede & Co., or registered assigns, the principal sum of — DOLLARS
($—) on June 15, 2017. 
 Interest Payment Dates: December 15 and June 15,
commencing June 15, 2013. 
 Record Dates: December 1 and June 1. 

 

			
	 RADIAN GROUP INC.

		
	 By:
	 	  

		 	C. Robert Quint, Executive Vice President and Chief Financial Officer

 This is one of the 
 Notes referred to in the 
 within-mentioned Indenture: 

 

			
	 U.S. BANK NATIONAL ASSOCIATION,

as Trustee

		
	 By:
	 	  

	
                        
                , Authorized Officer

 (Back of Note) 
 9.000% Senior Note due 2017 
 Capitalized terms used herein have the meanings assigned to them in
the Indenture referred to below unless otherwise indicated. 
 1. INTEREST. Radian Group Inc., a Delaware corporation (the
“Company”), promises to pay interest on the principal amount of this Note at 9.000% per annum from the date specified below until maturity or its earlier redemption. The Company shall pay interest semi-annually on December 15 and
June 15 of each year (each an “Interest Payment Date”), or if any such day is not a Business Day, on the next succeeding Business Day. Interest on the Notes shall accrue from the most recent date to which interest has been paid or, if
no interest has been paid, from the date of issuance; provided that if there is no existing Default in the payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest
Payment Date, interest shall accrue from such next succeeding Interest Payment Date; provided, further, that the first Interest Payment Date shall be June 15, 2013. The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest shall be computed on the basis of a 360-day year of
twelve 30-day months. 
 2. METHOD OF PAYMENT. The Company shall pay interest on the Notes (except defaulted interest) to the Persons who
are registered Holders of Notes at the close of business on the December 1 or June 1 next preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as
provided in Section 2.14 of the Indenture with respect to defaulted interest and Section 2.03 of the Indenture with respect to Notes called for redemption. The Notes shall be payable as to principal and interest at the office or agency of
the Paying Agent maintained for such purpose within or without St. Paul, Minnesota, provided that payment by wire transfer of immediately available funds shall be required with respect to principal of and interest on all Global Securities and all
other Notes the Holders of which shall have provided wire transfer instructions to the Company or the Paying Agent. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment
of public and private debts. 
 3. PAYING AGENT AND REGISTRAR. U.S. Bank National Association, the Trustee under the Indenture, shall act
as initial Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company may act in any such capacity. 
 4. INDENTURE. The Company issued the Notes under an Indenture dated as of June 7, 2005 (the “Indenture”) between the Company and the Trustee. The terms of the Notes include those
stated in the Indenture and in an Officers’ Certificate of Designation of Terms of Securities signed by the Executive Vice President and Chief Financial Officer and Vice President and Treasurer of the Company, pursuant to the authority granted
to such officers by the Company’s Board of Directors, as set forth in an Officers’ Certificate provided to the Trustee on February 28, 2013 in accordance with Section 2.02 of the Indenture, and those terms made part

 
of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”). The Notes are subject to all such terms, and Holders
are referred to the Indenture, the Officers’ Certificate and the TIA for a statement of such terms. The Notes are general obligations of the Company. “Notes” means this Note and all other Notes of the series of which this Note is a
part. The Notes are “Securities” within the meaning of the Indenture, and references in the Indenture to “Securities” (including terms such as “Global Securities”) include the Notes (and any “Global Notes” as
used herein). 
 5. OPTIONAL REDEMPTION. The Notes may be redeemed, in whole or in part, at the option of the Company at any time or from
time to time, at a redemption price equal to the greater of (1) 100% of the aggregate principal amount of the Notes to be redeemed or (2) the sum of the present value of the remaining scheduled payments of principal of and interest on the
Notes (not including any portion of such payments of interest accrued to the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate
(defined below) plus 50 basis points, as calculated by an Independent Investment Banker. In each case, the redemption price is payable together with accrued and unpaid interest on the Notes to be redeemed on the redemption date. 

“Adjusted Treasury Rate” means, with respect to any redemption date: 

 

	 	•	 	 the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical
release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to
constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the Remaining Life, yields for the two published
maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or

  

	 	•	 	 if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate
per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price
for such redemption date. 

 The Adjusted Treasury Rate shall be calculated on the second business day preceding the
redemption date. 
 “Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker
as having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Notes to be redeemed, or “Remaining Life”. 

  
 17 

 “Comparable Treasury Price” means (1) the average of the Reference Treasury Dealer Quotations
for such redemption date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such
quotations. 
 “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company. 

“Reference Treasury Dealer” means: 
  

	 	•	 	 Merrill Lynch, Pierce, Fenner & Smith Incorporated and three other nationally recognized investment banking firms that are primary U.S.
Government securities dealers specified from time to time by the Company and their respective successors; provided that, if any of the foregoing ceases to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury
Dealer”), the Company will substitute another Primary Treasury Dealer; and 

  

	 	•	 	 any other Primary Treasury Dealer selected by the Company. 

 “Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Independent Investment Banker, of the bid
and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker at 3:30 p.m., New York City time, on the third business day preceding such
redemption date. 
 6. MANDATORY REDEMPTION. The Company shall not be required to make mandatory redemption or sinking fund payments with
respect to the Notes. 
 7. NOTICE OF REDEMPTION. Notice of Redemption shall be mailed at least 30 days but not more than 60 days before
the redemption date to each Holder whose Notes are to be redeemed at its registered address. Notes in denominations larger than $1,000 may be redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder are to be
redeemed. If less than all of the Notes are to be redeemed, the Trustee shall select which Notes are to be redeemed on a pro rata basis by lot or by such other method as the Trustee deems fair and appropriate, the Notes to be redeemed in whole or in
part. On and after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption. 
 8. DENOMINATIONS,
TRANSFER, EXCHANGE. The Notes are in registered form without coupons in all appropriate denominations. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a
Holder, among other things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need not transfer or exchange any Note
selected for redemption, except for the unredeemed portion of any Note being redeemed in part. Also, it need not transfer or exchange any Note for a period of 15 days before a selection of Notes to be redeemed. 

  
 18 

 9. PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner for all
purposes. 
 10. AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions, the Indenture or the Notes may be amended or
supplemented with the consent of the Holders of a majority in principal amount of the then outstanding Notes and other series of Securities affected (treating the Notes and such other series as a single class), and any existing default or compliance
with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority in principal amount of the then outstanding Notes and other series of Securities affected (treating the Notes and such other series as a
single class). Without the consent of any Holder of a Note, the Indenture or the Notes may be amended or supplemented to cure any ambiguity, error, defect or inconsistency, to provide for uncertificated Notes in addition to or in place of
certificated Notes, to provide for the assumption of the Company’s obligations to Holders of the Notes in case of a merger or consolidation, to make any change that does not adversely affect in any material respect the interests of the Holder,
or to comply with the requirements of the SEC or to effect or maintain the qualification of the Indenture under the TIA and as otherwise permitted in the Indenture. 
 11. DEFAULTS AND REMEDIES. Each of the following constitutes an Event of Default: (a) the Company defaults in the payment when due of interest on, or with respect to, any Note and such default
continues for a period of 30 days; (b) the Company defaults in the payment when due of principal of or premium, if any, on, or sinking fund payment, if any, with respect to, any Note when the same becomes due and payable at maturity, upon
redemption or otherwise; (c) the Company fails to observe or perform any other covenant, representation, warranty or other agreement in this Indenture, with respect to any Note for 60 days after notice to comply; (d) certain events of
bankruptcy or insolvency with respect to the Company; and (e) a default on (i) the payment of any scheduled principal of the Company’s Indebtedness or any Indebtedness of any of the Company’s Designated Subsidiaries (other than
the Notes and non-recourse debt) having an aggregate principal amount outstanding of at least $50 million, when due and payable after giving effect to any applicable grace period; or (ii) a default in the performance of any other term or
provision of any of the Company’s Indebtedness or any Indebtedness of any of the Company’s Designated Subsidiaries (other than the Notes and non-recourse debt) having an aggregate principal amount outstanding of at least $50 million;
where, in the case of either (i) or (ii), such default results in such Indebtedness becoming or being declared due and payable before the date on which it would otherwise become due and payable, and such acceleration shall not have been
rescinded or annulled, or such Indebtedness shall not have been discharged, within a period of 15 days after there has been given to the Company by the Trustee or to the Company and the Trustee by the holders of at least 25% in aggregate principal
amount of the Notes then outstanding, a written notice specifying such default or defaults. 
 “Indebtedness” means, with respect to
any Person: (a) the principal of, and any premium and interest on, indebtedness of the Person for money borrowed and indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of which that Person is
responsible or liable; (b) all capitalized lease obligations of that Person; (c) all obligations of that Person issued or assumed as the deferred purchase price of property, all conditional sale obligations and all obligations under any
title retention agreement (but excluding trade accounts payable arising in the ordinary course of business and deferred purchase price due and payable 

  
 19 

 
within 90 days); (d) all obligations of that Person for the reimbursement of any obligor on any letter of credit, banker’s acceptance or similar credit transaction, other than
obligations with respect to letters of credit securing obligations entered into in the ordinary course of business; (e) all obligations of that Person under interest swap agreements, interest rate cap agreements and interest collar agreements
and other agreements or arrangements designated to protect that Person against fluctuations in interest rates; (f) all obligations of the type referred to above of other persons and all dividends of other persons for which that Person is
responsible or liable as obligor, guarantor or otherwise, except Indebtedness shall not include (i) endorsements for collection or deposit in the ordinary course of business or (ii) financial guaranties made by an insurance company
(including a financial guaranty company) as an incident to the conduct of its insurance business and in the ordinary course of such business; (g) all obligations of the type referred to above of other persons secured by any lien on any property
or asset of that Person; and (h) any amendments, modifications, refundings, renewals or extensions of any indebtedness or obligation described above. 
 Notwithstanding the foregoing, for the purposes of clause (e) under Events of Default in paragraph 11 above, (i) Indebtedness of a Person will not include any Conduit Indebtedness or any Insured
Indebtedness of that Person or any guaranty of that type of Indebtedness by such Person in the ordinary course of its business, and (ii) in connection with the purchase by a Person of any business, the term Indebtedness shall exclude
post-closing payment adjustments to which the seller may become entitled to the extent such payment is determined by a final closing so long as at the time of closing, the amount of any such payment is not determinable and, to the extent such
payment thereafter becomes fixed and determined, the amount is paid when due. “Conduit Indebtedness” means, with respect to a Person, Indebtedness of a special purpose entity or Subsidiary of such Person that is consolidated on such
Person’s financial statements in accordance with GAAP so long as (i) the proceeds of such debt are used by such special purpose entity or Subsidiary to make loans to, or to purchase assets from, another Person that is not an affiliate of
such Person, in the ordinary course of business and (ii) such Indebtedness and/or any payment with respect to accounts receivable and other assets underlying such Indebtedness are guaranteed by the former Person or one or more of its
Subsidiaries, in the ordinary course of business. “Insured Indebtedness” means, with respect to a Person, any Indebtedness of such Person or its Subsidiaries that is guaranteed by such Person or another Subsidiary of such Person that is an
insurance company (including a financial guaranty company) so long as the proceeds of such Indebtedness are used to purchase securities, instruments, notes or other obligations issued or owed by a Person that is not an affiliate of such Person, in
the ordinary course of business. 
 If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal
amount of the then outstanding Notes and other series of Securities affected (treating the Notes and such other series as a single class) may declare all the Notes to be due and payable immediately. Notwithstanding the foregoing, in the case of an
Event of Default arising from certain events of bankruptcy or insolvency with respect to the Company, all outstanding Notes will become due and payable without further action or notice. Holders of the Notes may not enforce the Indenture or the Notes
except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then outstanding Notes and other series of Securities affected (treating the Notes and such other series as a single class) may
direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of the 

  
 20 

 
Notes notice of any continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal or interest) if it determines that withholding notice is in
their interest. The Holders of a majority in aggregate principal amount of the Notes then outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing Default or Event of Default and its consequences under
the Indenture except a continuing Default or Event of Default in the payment of principal, interest or premium, if any, on the Notes. The Company is required to deliver to the Trustee annually a statement regarding compliance with the Indenture.

 12. TRUSTEE DEALINGS WITH THE COMPANY. The Trustee, in its individual or any other capacity, may make loans to, accept deposits from,
and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee. 
 13. NO RECOURSE AGAINST OTHERS. No director, officer, employee, incorporator or stockholder of the Company will have any liability for any obligations of the Company under the Notes or the
Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for the
issuance of the Notes. 
 14. AUTHENTICATION. This Note shall not be valid until authenticated by the manual signature of the Trustee or
an authenticating agent. 
 15. ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN
COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

16. CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any
notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
 The Company shall
furnish to any Holder upon written request and without charge a copy of the Indenture. Requests may be made to: 
 Radian Group
Inc. 
 1601 Market Street 
 Philadelphia, PA 19103 
 Facsimile No.: (215) 963-9658 

Attention:    Chief Financial Officer 

  
 21 

 ASSIGNMENT FORM 
 To assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to 
  

 
 (Insert assignee’s soc. sec. or
tax I.D. no.) 
  
  

 
  

 
  

 
  

 
 (Print or type assignee’s name, address and
zip code) 
 and irrevocably
appoint                                        
                                         
                                 
 to transfer this Note on the books of the Company. The agent may substitute another to act for him or her. 
  

 
  
 Date:                         

 

			
	 Your Signature:
	 	  

	 (Sign exactly as your name appears on the face of this Note)

 Signature Guarantee: 

  
 22 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY 

The following exchanges of a part of this Global Security for an interest in another Global Security or for a Definitive Note, or
exchanges of a part of another Global Security or Definitive Note for an interest in this Global Security, have been made: 
  

									
	 Date of Exchange
	  	Amount of
decrease in
Principal
Amount of this
Global Security	  	Amount of
increase in
Principal
Amount of this
Global Security	  	Principal
Amount of this
Global Security
following such
decrease (or
increase)	  	Signature of
authorized
officer of
Trustee or Note
Custodian
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  
 23EX-10.12

 EXHIBIT 10.12 
 Change in Control Agreement by and between Heritage Bank and David A. Spurling 
 HERITAGE BANK 
 CHANGE
IN CONTROL AGREEMENT 
 THIS
CHANGE IN CONTROL AGREEMENT is made and entered into as of [November 20, 2012], by and between HERITAGE BANK and DAVID
SPURLING. As used in this Agreement, capitalized terms have the meanings set forth in Section 19. 
 RECITALS 
 A. Executive is currently employed by the
Company. 
 B. The Company is a wholly-owned subsidiary of Parent. 

C. The Company desires to continue to employ Executive as an employee of the Company and Executive is willing to continue such
employment. 
 D. The Company recognizes that circumstances may arise in which a change in control of Parent, through
acquisition or otherwise, may occur thereby causing uncertainty of employment without regard to the competence or past contributions of Executive, which uncertainty may result in the loss of valuable services of Executive, and the Parties wish to
provide reasonable security to Executive against changes in the employment relationship in the event of any such change in control. 
 AGREEMENT 
 In consideration of the foregoing and the mutual
promises and covenants of the Parties set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby expressly covenant and
agree as follows: 
 1. Term. The term of this Agreement shall commence on the Effective Date and shall continue
through June 30, 2014 (the “Term”). This Agreement shall automatically extend for additional 12-month periods, unless terminated by the Company, effective as of the last day of the then current Term by written notice to that
effect delivered not fewer than 90 days prior to the last day of the then current Term. Notwithstanding any provision of this Agreement to the contrary, if a Change in Control occurs during the Term, this Agreement shall remain in effect for the
two-year period immediately following the Change in Control and shall then terminate. 
 2. Payment of Severance
Amount. If Executive’s employment is subject to a Termination within the Covered Period, then the Company shall provide Executive the following benefits: 

(a) On the first regularly scheduled payroll date following the 45th day following the Termination Date,
Executive shall commence receiving the applicable Severance Amount (less any amount described in Section 2(b)), with such amount to be paid in substantially equal installments in accordance with the then-current normal payroll practices
of the Company over the 12-month period following the Termination Date (the “Payment Period”). The payment of any Severance Amount pursuant to this Agreement supersedes and replaces any other benefit to which Executive may have been
entitled pursuant to any other severance benefit program maintained by the Company or any 

 
Affiliate at the time of Executive’s Termination; provided, however, that payment of any Severance Amount hereunder shall not have any effect on any restrictive covenants to which
Executive is or may be subject pursuant to any other program maintained by, or agreement entered into with, the Company or any Affiliate. 
 (b) To the extent any portion of the Severance Amount exceeds the “safe harbor” amount described in Treasury Regulation Section 1.409A-1(b)(9)(iii)(A), Executive shall receive such
portion of the applicable Severance Amount that exceeds the “safe harbor” amount in a single lump sum payment payable on the 45th day following the Termination Date. 
 (c) Within 30 days following the Termination Date, the Company shall pay Executive a lump sum payment in an amount equal to the sum of all amounts earned or accrued through the Termination Date,
including any annual salary, bonus, vacation pay, which has accrued but has not been paid or used. 
 (d)
Executive’s rights following a Termination with respect to any benefits, incentives, or awards provided to Executive pursuant to the terms of any plan, program, or arrangement sponsored or maintained by the Company or any Affiliate, whether
tax-qualified or not, which are not specifically addressed herein, shall be subject to the terms of such plan, program, or arrangement and this Agreement shall have no effect upon such terms except as specifically provided herein. 

(e) It is the intention of the Parties that no portion of any payment under this Agreement, or payments to or for the benefit of
Executive under any other agreement or plan, be deemed to be an Excess Parachute Payment. The present value of payments to or for the benefit of Executive in the nature of compensation, receipt of which is contingent on a Change in Control, and to
which Code Section 280G applies (in the aggregate “Total Payments”) shall not exceed an amount equal to $1.00 less than the maximum amount that the Company may pay without loss of deduction under Code Section 280G(a).
Present value for purposes of this Section 2(e) shall be calculated in accordance with Code Section 280G(d)(4). Within 90 days following the earlier of the giving of the notice of termination or the giving of notice by the Company
to Executive of its belief that there is a payment or benefit due to Executive that will result in an Excess Parachute Payment, Executive and the Company, at the Company’s expense, shall obtain the opinion of such legal counsel and certified
public accountants as Executive may choose (notwithstanding the fact that such persons have acted or may also be acting as the legal counsel or certified public accountants for the Company), which opinions need not be unqualified, which set forth
(i) the amount of the includable compensation of Executive for the base period, as determined under Code Section 280G, (ii) the present value of Total Payments, and (iii) the amount and present value of any Excess Parachute
Payments. If such opinions determine that there would be an Excess Parachute Payment, the payment hereunder or any other payment determined by such counsel to be includable in Total Payments shall be modified, reduced, or eliminated as specified by
Executive in writing delivered to the Company within 60 days of Executive’s receipt of such opinions or, if Executive fails to so notify the Company, then as the Company shall reasonably determine, so that under the bases of calculation set
forth in such opinions there will be no Excess Parachute Payment; provided, however, that any such specification by Executive or the Company shall not be effective where it would result in an imposition of any additional income tax
under Code Section 409A. The provisions of this Section 2(e), including the calculations, notices, and opinions provided for herein shall be based upon the conclusive presumption that (A) the compensation provided for in this
Agreement and (B) any other compensation earned by Executive pursuant to the Company’s programs that would have been provided in any event are reasonable compensation for services rendered, even though the timing of such payment is
triggered by the Change in Control; provided, however, that if such legal counsel so requests in connection with the opinion required by this Section 2(e), Executive and the Company shall obtain, at the Company’s
expense, and the legal counsel may rely on in providing the opinion, the advice of a firm of recognized executive compensation consultants as to the reasonableness of any item of compensation to be received by Executive. 

  
 2 

 3. Medical and Dental Benefits. If Executive’s employment is subject to a
Termination within the Covered Period, then to the extent that Executive or any of Executive’s dependents may be covered under the terms of any medical or dental plans of the Company (or an Affiliate) for active employees immediately prior to
the Termination Date, then, provided Executive is eligible for and elects coverage under the health care continuation rules of COBRA, Company shall provide Executive and those dependents with coverage equivalent to the coverage in effect
immediately prior to the Termination. For a period of 12 months, Executive shall be required to pay the same amount as Executive would pay if Executive continued in employment with the Company during such period and thereafter Executive shall be
responsible for the full cost of such continued coverage; provided, however, that such coverage shall be provided only to the extent that it does not result in any additional tax or other penalty being imposed on the Company or an
Affiliate or violate any nondiscrimination requirements then applicable with respect to the applicable plans. The coverages under this Section 3 may be procured directly by the Company (or an Affiliate, if appropriate) apart from, and
outside of the terms of the respective plans, provided that Executive and Executive’s dependents comply with all of the terms of the substitute medical or dental plans, and provided, further, that the cost to the Company
and its Affiliates shall not exceed the cost for continued COBRA coverage under the Company’s (or an Affiliate’s) plans, as set forth in the immediately preceding sentence. In the event Executive or any of Executive’s dependents is or
becomes eligible for coverage under the terms of any other medical and/or dental plan of a subsequent employer with plan benefits that are comparable to Company (or Affiliate) plan benefits, the Company’s and its Affiliates’ obligations
under this Section 3 shall cease with respect to the eligible Executive and/or dependent. Executive and Executive’s dependents must notify the Company of any subsequent employment and provide information regarding medical and/or
dental coverage available. 
 4. Release. Notwithstanding any provision of this Agreement to the contrary, no
benefits owed to Executive under Section 2(a), Section 2(b), or Section 3 shall be provided to Executive unless Executive executes (without subsequent revocation) and delivers to the Company a Release within 21
days (or such longer period to the extent required by applicable law) following the Termination Date. 
 5. Restrictive
Covenants. Executive acknowledges that Executive has been and will continue to be provided intimate knowledge of the business practices, trade secrets, and other confidential and proprietary information of the Company and its Affiliates
(including the Confidential Information), which, if exploited by Executive, would seriously, adversely, and irreparably affect the interests of the Company and its Affiliates and the ability of each to continue its business. 

(a) Confidential Information. Executive acknowledges that, during the course of Executive’s employment with the
Company, Executive may produce and have access to Confidential Information. Executive shall not directly or indirectly use, disclose, copy, or make lists of Confidential Information for the benefit of anyone other than the Company, either during or
after Executive’s employment with the Company, except to the extent that such information is or thereafter becomes lawfully available from public sources, or such disclosure is authorized in writing by the Company, required by law, or otherwise
as reasonably necessary or appropriate in connection with the performance by Executive of Executive’s duties hereunder. If Executive receives a subpoena or other court order or is otherwise required by law to provide information to a
governmental authority or other person concerning the activities of the Company or its Affiliates, or Executive’s activities in connection with the business of the Company or its Affiliates, Executive shall immediately notify the Company of
such subpoena, court order, or other requirement and deliver forthwith to the Company a copy thereof and any attachments and non-privileged correspondence related thereto. Executive shall take reasonable precautions to protect against the
inadvertent disclosure of Confidential Information. Executive shall abide by the Company’s and its Affiliates’ policies, as in effect from time to time, respecting avoidance of interests conflicting with those of the Company and its
Affiliates. In this regard, Executive shall not directly or indirectly render services to any person or entity where Executive’s service would involve the use or disclosure of Confidential Information. Executive shall not use any Confidential
Information to guide Executive in searching publications or other publicly available information, selecting a series of items of knowledge from unconnected sources, and fitting them together to claim that Executive did not violate any terms set
forth in this Agreement. 

  
 3 

 (b) Documents and Property. 

(i) All records, files, documents, and other materials or copies thereof relating to the business of the Company or its Affiliates that
Executive prepares, receives, or uses, shall be and remain the sole property of the Company and, other than in connection with the performance by Executive of Executive’s duties hereunder, shall not be removed from the premises of the Company
or its Affiliates without the Company’s prior written consent, and shall be immediately returned to the Company upon Executive’s termination of employment for any reason, together with all copies (including copies or recordings in
electronic form), abstracts, notes, or reproductions of any kind made from or about the records, files, documents, or other materials. Executive shall disclose to the Company all computer and internet user identifications and passwords used by
Executive in the course of Executive’s performance of Executive’s duties to the Company or necessary for accessing information on the Company’s or its Affiliates’ computer systems upon Executive’s termination of employment
for any reason. 
 (ii) Executive acknowledges that Executive’s access to and permission to use the Company’s and its
Affiliates’ computer systems, networks, and equipment, and all Company and Affiliate information contained therein, is restricted to legitimate business purposes on behalf of the Company. Any other access to or use of such systems, network,
equipment, and information is without authorization and is prohibited. The restrictions contained in this paragraph extend to any personal computers or other electronic devices of Executive that are used for business purposes relating to the Company
or its Affiliates (including smart phones, PDAs, digital tablets, or other portable electric devices). Executive shall not transfer any Company or Affiliate information to any personal computer or other electronic device that is not otherwise used
for any business purpose relating to the Company or an Affiliate. Upon the termination of Executive’s employment with the Company for any reason, Executive’s authorization to access and permission to use the Company’s and its
Affiliates’ computer systems, networks, and equipment, and any Company and Affiliate information contained therein, shall cease. 
 (c) Non-Competition and Non-Solicitation. The primary service area of the Company’s business in which Executive will actively participate extends separately to the Restricted Area.
Therefore, as an essential ingredient of and in consideration of this Agreement and Executive’s employment with the Company, Executive shall not, during Executive’s employment with the Company or during the Restricted Period, directly or
indirectly do any of the following (all of which are collectively referred to in this Agreement as the “Restrictive Covenant”): 
 (i) Within the Restricted Area, engage or invest in, own, manage, operate, finance, control, participate in the ownership, management, operation, or control of, be employed by, associated with, or in any
manner connected with, serve as a director, officer, or consultant to, lend Executive’s name or any similar name to, lend Executive’s credit to, or render services or advice to, any person, firm, partnership, corporation, or trust that
owns, operates, or is in the process of forming a Competitor with an office located, or to be located at an address identified in a filing with any regulatory authority, within the Restricted Area; provided, however, that the ownership by Executive
of shares of the capital stock of any institution, which shares are listed on a securities exchange and that do not represent more than 1% of the institution’s outstanding capital stock, shall not violate any terms of this Agreement;

 (ii) (A) Induce or attempt to induce any employee of the Company or its Affiliates to leave the employ of the
Company or its Affiliates; (B) in any way interfere with the relationship between the Company or its Affiliates and any employee of the Company or its Affiliates; or (C) induce or attempt to induce any customer, supplier, licensee, or
other business relation of the Company or its Affiliates to cease doing business with the Company or its Affiliates or in any way interfere with the relationship between the Company or its Affiliates and their respective customers, suppliers,
licensees, or other business relations. 
 (iii) Solicit the business of any person or entity known to Executive to be a
customer of the Company or its Affiliates, where Executive, or any person reporting to Executive, had 

  
 4 

 
accessed Confidential Information of, had an ongoing business relationship with, or had made Substantial Business Efforts with respect to, such person or entity, with respect to products,
activities, or services that compete in whole or in part with the products, activities, or services of the Company or its Affiliates. 
 (iv) Serve as the agent, broker, or representative of, or otherwise assist, any person or entity in obtaining services or products from any Competitor within the Restricted Area, with respect to products,
activities, or services that compete in whole or in part with the products, activities, or services of the Company or its Affiliates. 
 (v) Within the Restricted Area, accept employment, provide services to, or act in any other such capacity for or with any Competitor, if in such employment or capacity Executive would, because of
Executive’s knowledge of the Company’s Confidential Information or trade secrets, inevitably use and/or disclose Company’s Confidential Information or trade secrets in Executive’s work or service for such Competitor. 

Notwithstanding any provision of this Agreement to the contrary, in the event Executive’s employment terminates, for any reason, prior to a Covered
Period, the above subsections (i), (iv), and (v) of the Restrictive Covenants shall not apply. 
 (d) Works
Made for Hire Provisions. The Parties acknowledge that all work performed by Executive for the Company or its Affiliates shall be deemed a work made for hire. The Company shall at all times own and have exclusive right, title, and interest
in and to all Confidential Information and Inventions, and the Company shall retain the exclusive right to license, sell, transfer, and otherwise use and dispose of the same. All enhancements of the technology of the Company or its Affiliates that
are developed by Executive shall be the exclusive property of the Company. Executive hereby assigns to the Company any right, title, and interest in and to all Inventions that Executive may have, by law or equity, without additional consideration of
any kind whatsoever from the Company or its Affiliates. Executive shall execute and deliver any instruments or documents and do all other things (including the giving of testimony) requested by the Company (both during and after the termination of
Executive’s employment with the Company) in order to vest more fully in the Company or its Affiliates all ownership rights in the Inventions (including obtaining patent, copyright, or trademark protection therefore in the United States and/or
foreign countries). To the extent required by applicable state statute, this paragraph shall not apply to an Invention for which no equipment, supplies, facility, or trade secret information of the Company or its Affiliates was used and that was
developed entirely on Executive’s own time, unless the Invention (i) relates to the business of the Company or an Affiliate or to the Company’s or an Affiliate’s actual or demonstrably anticipated research or development or
(ii) results from any work performed by Executive for the Company or an Affiliate. 
 (e) Remedies for Breach of
Restrictive Covenants. Executive has reviewed the provisions of this Agreement with legal counsel, or has been given adequate opportunity to seek such counsel, and Executive acknowledges that the covenants contained in this
Section 5 are reasonable with respect to their duration, geographical area, and scope. Executive further acknowledges that the restrictions contained in this Section 5 are reasonable and necessary for the protection of the
legitimate business interests of the Company and its Affiliates, that they create no undue hardships, that any violation of these restrictions would cause substantial injury to the Company and its Affiliates and such interests, and that such
restrictions were a material inducement to the Company to enter into this Agreement. In the event of any violation or threatened violation of the restrictions contained in this Section 5, the Company and the Affiliates, in addition to
and not in limitation of, any other rights, remedies, or damages available under this Agreement or otherwise at law or in equity, (i) shall be entitled to preliminary and permanent injunctive relief to prevent or restrain any such violation by
Executive and all persons directly or indirectly acting for or with Executive, as the case may be, without any requirement that the Company or an Affiliate post bond and (ii) shall be relieved of any obligation to pay or provide any amounts or
benefits pursuant to this Agreement. If Executive violates the Restrictive Covenant and the Company brings legal action for injunctive or other relief, the Company shall not, as a result of the time involved in obtaining such relief, be deprived of
the benefit of the full period of the Restrictive Covenant; 

  
 5 

 
accordingly, the Restrictive Covenant shall be deemed to have the duration specified herein computed from the date the relief is granted but reduced by the time between the period when the
Restricted Period began to run and the date of the first violation of the Restrictive Covenant by Executive. 
 (f) Other
Agreements. In the event of the existence of another agreement between the Parties that (i) is in effect during the Restricted Period, and (ii) contains restrictive covenants that conflict with any of the provisions of
Section 5, then the more restrictive of such provisions from the two agreements shall control for the period during which both agreements would otherwise be in effect. 

6. Regulatory Suspension and Termination; Clawback. 

(a) If Executive is suspended or temporarily prohibited from participating in the conduct of the affairs of the Company or an
Affiliate by a notice served under Section 8(e) or 8(g) of the FDIA, or pursuant to Section 30.12.040 of the Revised Code of Washington, all obligations of the Company under this Agreement shall be suspended as of the date of service,
unless stayed by appropriate proceedings; if the charges in such notice are dismissed, the Company may in its discretion (A) pay Executive all or part of the compensation withheld while its obligations under this Agreement were suspended and
(B) reinstate in whole or in part any of its obligations that were suspended, all in accordance with Code Section 409A. 
 (b) If Executive is removed or permanently prohibited from participating in the conduct of the affairs of the Company or an Affiliate by an order issued under Section 8(e) or 8(g) of the FDIA,
or pursuant to Section 30.12.040 of the Revised Code of Washington, all obligations of the Company under this Agreement shall terminate as of the effective date of the order, provided that this Section 6(a) shall not affect
any vested rights of the Parties. 
 (c) If the Company is in default as defined in Section 3(x) of the FDIA, all
obligations of the Company under this Agreement shall terminate as of the date of default, provided that this Section 6(a) shall not affect any vested rights of the Parties. 

(d) All obligations of the Company under this Agreement shall be terminated, except to the extent determined by the FDIC that
continuation of this Agreement is necessary for the continued operation of the institution, at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Company under the authority contained in Section 13(c) of the
FDIA, or when the Company is determined by the FDIC to be in an unsafe or unsound condition, provided that this Section 6(a) shall not affect any vested rights of the Parties. 

(e) Any payments made to Executive pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance
with Section 18(k) of the FDIA. 
 (f) Notwithstanding any provision of this Agreement to the contrary, if any
Severance Restrictions require the recapture or “clawback” of any Severance Amount paid to Executive under this Agreement, Executive shall repay to the Company the aggregate amount of any such payments, with such repayment to occur no
later than 30 days following Executive’s receipt of a written notice from the Company indicating that payments received by Executive under this Agreement are subject to recapture or clawback pursuant to the Severance Restrictions. 

7. Notices. Notices and all other communications under this Agreement shall be in writing and shall be deemed given when
mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows: if to the Company, Heritage Financial Corporation; Attention: Director of Human Resources; 201 Fifth Avenue S.W.; Olympia,
Washington 98501; and if to Executive, to Executive’s most recent address in the Company’s records; or, in each respective case, to such other address as either Party may furnish to the other in writing, except that notices of changes of
address shall be effective only upon receipt. 

  
 6 

 8. Applicable Law. All questions concerning the construction, validity, and
interpretation of this Agreement and the performance of the obligations imposed by this Agreement shall be governed by the internal laws of the State of Washington applicable to agreements made and wholly to be performed in such state without regard
to conflicts of law provisions of any jurisdiction. 
 9. Entire Agreement. This Agreement constitutes the entire
agreement between the Parties concerning the subject matter hereof, and supersedes all prior negotiations, undertakings, agreements, and arrangements with respect thereto, whether written or oral. If a court of competent jurisdiction determines that
any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement and all other provisions shall remain in
full force and effect. The various covenants and provisions of this Agreement are intended to be severable and to constitute independent and distinct binding obligations. Without limiting the generality of the foregoing, if the scope of any covenant
contained in this Agreement is too broad to permit enforcement to its full extent, such covenant shall be enforced to the maximum extent permitted by law, and such scope may be judicially modified accordingly. 

10. Withholding of Taxes. The Company may withhold from any benefits payable under this Agreement all federal, state, city
and other taxes as may be required pursuant to any law, governmental regulation, or ruling. 
 11. Not an Employment
Agreement. Nothing in this Agreement shall give Executive any rights (or impose any obligations) to continued employment by the Company or any Affiliate. 
 12. No Assignment. Executive’s rights to receive benefits under this Agreement shall not be assignable or transferable whether by pledge, creation of a security interest, or otherwise,
other than a transfer by will or by the laws of descent or distribution. In the event of any attempted assignment or transfer contrary to this Section 12, the Company and its Affiliates shall have no liability to pay any amount so
attempted to be assigned or transferred. This Agreement shall inure to the benefit of and be enforceable by Executive’s personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees.

 13. Successors. This Agreement shall be binding upon and inure to the benefit of the Company, its successors
and assigns. 
 14. Legal Fees. In the event that either Party commences mediation, arbitration, or litigation to
enforce or protect such Party’s rights in accordance with and under this Agreement, the prevailing Party in any such action shall be entitled to recover reasonable attorneys’ fees and costs (including the costs of experts, evidence, and
counsel) and other costs relating to such action, in addition to all other entitled relief, including damages and injunctive relief. 
 15. Amendment. This Agreement may not be amended or modified except by written agreement signed by the Parties. 
 16. Code Section 409A. 
 (a) To the extent any provision
of this Agreement or action by the Company would subject Executive to liability for interest or additional taxes under Code Section 409A, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Company. It
is intended that this Agreement will comply with Code Section 409A, and this Agreement shall be administered accordingly and interpreted and construed on a basis consistent with such intent. Notwithstanding any provision of this Agreement to
the contrary, no termination or similar payments or benefits shall be payable hereunder on account of Executive’s termination of employment unless such termination constitutes a “separation from service” within the meaning of Code
Section 409A. For purposes of Code Section 409A, all installment payments of deferred compensation made hereunder, or pursuant to 

  
 7 

 
another plan or arrangement, shall be deemed to be separate payments. To the extent any reimbursements or in-kind benefit payments under this Agreement are subject to Code Section 409A, such
reimbursements and in-kind benefit payments shall be made in accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv). This Agreement may be amended to the extent necessary (including retroactively) by the Company to avoid the application
of taxes or interest under Code Section 409A, while maintaining to the maximum extent practicable the original intent of this Agreement. This Section 16 shall not be construed as a guarantee of any particular tax effect for
Executive’s benefits under this Agreement and the Company does not guarantee that any such benefits will satisfy the provisions of Code Section 409A. 
 (b) Notwithstanding any provision of this Agreement to the contrary, if Executive is determined to be a Specified Employee as of the Termination Date, then, to the extent required pursuant to Code
Section 409A, payments due under this Agreement that are deemed to be deferred compensation shall be subject to a six-month delay following the Termination Date; and all delayed payments shall be accumulated and paid in a lump-sum payment as of
the first day of the seventh month following the Termination Date (or, if earlier, as of Executive’s death), with all such delayed payments being credited with interest (compounded monthly) for this period of delay equal to the prime rate in
effect on the first day of such six-month period (based on the prime rate as reflected in the Wall Street Journal). Any portion of the benefits hereunder that were not otherwise due to be paid during the six-month period following the
Termination Date shall be paid to Executive in accordance with the payment schedule established herein. 
 17. Deferral of
Nondeductible Compensation. If Executive’s aggregate compensation (including benefits that are deemed remuneration for purposes of Code Section 162(m)) from the Company and the Affiliates for any calendar year exceeds the maximum
amount of compensation deductible by the Company or any Affiliate in any calendar year under Code Section 162(m) (for purposes of this paragraph, the “maximum allowable amount”), then any such amount in excess of the maximum allowable
amount shall be mandatorily deferred with interest thereon at 4% per annum to a calendar year such that the amount to be paid to Executive in such calendar year, including deferred amounts and interest thereon, does not exceed the maximum
allowable amount. Subject to the foregoing, deferred amounts, including interest thereon, shall be payable at the earliest time permissible, in accordance with Code Section 409A. 

18. Construction. In this Agreement, unless otherwise stated, the following uses apply: (a) references to a statute
shall refer to the statute and any amendments and any successor statutes, and to all regulations promulgated under or implementing the statute, as amended, or its successors, as in effect at the relevant time; (b) in computing periods from a
specified date to a later specified date, the words “from” and “commencing on” (and the like) mean “from and including, “ and the words “to,” “until,” and “ending on” (and the like) mean
“to, but excluding”; (c) references to a governmental or quasi-governmental agency, authority or instrumentality shall also refer to a regulatory body that succeeds to the functions of the agency, authority, or instrumentality;
(d) indications of time of day shall be based upon the time applicable to the location of the principal headquarters of the Company; (e) the words “include,” “includes,” and “including” (and the like) mean
“include, without limitation,” “includes, without limitation,” and “including, without limitation,” (and the like) respectively; (f) all references to preambles, recitals, sections, and exhibits are to preambles,
recitals, sections, and exhibits in or to this Agreement; (g) the words “hereof,” “herein,” “hereto,” “hereby,” “hereunder,” (and the like) refer to this Agreement as a whole (including
exhibits); (h) any reference to a document or set of documents, and the rights and obligations of the parties under any such documents, means such document or documents as amended from time to time, and all modifications, extensions, renewals,
substitutions, or replacements thereof; (i) all words used shall be construed to be of such gender or number as the circumstances and context require; (j) the captions and headings of preambles, recitals, sections, and exhibits appearing
in or attached to this Agreement have been inserted solely for convenience of reference and shall not be considered a part of this Agreement, nor shall any of them affect the meaning or interpretation of this Agreement or any of its provisions and
(k) all accounting terms not specifically defined herein shall be construed in accordance with GAAP. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall
constitute one and the same Agreement. 

  
 8 

 19. Definitions. As used in this Agreement, the terms defined in this
Section 19 have the meanings set forth below. 
 (a) “1934 Act” means the Securities
Exchange Act of 1934. 
 (b) “Affiliate” means each Business Entity that, directly or indirectly, is
controlled by, controls, or is under common control with, the Company, where “control” means (i) the ownership of 51% or more of the Voting Securities or other voting or equity interests of any Business Entity, or (ii) the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Business Entity. 
 (c) “Agreement” means this Change in Control Agreement, made and entered into as of the Effective Date, by and between the Parties. 

(d) “Base Compensation” means the amount equal to the greater of Executive’s then-current annual salary or
Executive’s annual salary as of the date one day prior to a Change in Control. 
 (e) “Board” means
the Board of Directors of the Company. 
 (f) “Business Entity” means any corporation, partnership,
limited liability company, joint venture, association, partnership, business trust or other business entity. 
 (g)
“Change in Control” means the first to occur of the following: 
 (i) The acquisition in one or more
transactions by any “person” (for purposes of this definition, as such term is used for purposes of Section 13(d) or 14(d) of the 1934 Act) of “beneficial ownership” (for purposes of this definition, within the meaning of
Rule 13d-3 promulgated under the 1934 Act) of 50% or more of the combined voting power of Parent’s then outstanding Voting Securities; provided, however, that for purposes of this definition, the Voting Securities acquired
directly from Parent by any person shall be excluded from the determination of such person’s beneficial ownership of Voting Securities (but such Voting Securities shall be included in the calculation of the total number of Voting Securities
then outstanding); or 
 (ii) During any 12 month period, the individuals who are members of the Incumbent Board cease for
any reason to constitute more than 50% of Parent Board; provided, however, that if the election, or nomination for election by Parent’s shareholders, of any new director was approved by a vote of at least two-thirds of the
Incumbent Board, such new director shall, for purposes of this Agreement, be considered as 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 Parent Board; or 

(iii) The consummation of a merger or consolidation involving Parent if Parent’s shareholders immediately before such merger or
consolidation do not own, directly or indirectly immediately following such merger or consolidation, more than 50% of the combined voting power of the outstanding voting securities of the corporation resulting from such merger or consolidation in
substantially the same proportion as their ownership of the Voting Securities immediately before such merger or consolidation; or 

  
 9 

 (iv) The consummation of a complete liquidation or dissolution of Parent or an agreement
for the sale or other disposition of all or substantially all of the assets of Parent; or 
 (v) Acceptance by Parent’s
shareholders of shares in a share exchange if Parent’s shareholders immediately before such share exchange do not own, directly or indirectly immediately following such share exchange, more than 50% of the combined voting power of the
outstanding voting securities of the corporation resulting from such share exchange in substantially the same proportion as their ownership of the Voting Securities outstanding immediately before such share exchange. 

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because 50% or more of the then outstanding Voting
Securities is acquired by (A) a trustee or other fiduciary holding securities under one or more employee benefit plans maintained by Parent or any of its Affiliates, or (B) any corporation that, immediately prior to such acquisition, is
owned directly or indirectly by Parent’s shareholders in the same proportion as their ownership of stock in Parent immediately prior to such acquisition. 
 Moreover, notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any person (the “Subject Person”) acquires beneficial ownership of more than the
permitted amount of the outstanding Voting Securities as a result of the acquisition of Voting Securities by Parent that, by reducing the number of Voting Securities outstanding, increases the proportional number of shares beneficially owned by the
Subject Person, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of Voting Securities by Parent, and after such share acquisition by Parent, the Subject Person becomes
the beneficial owner of any additional Voting Securities that increases the percentage of the then outstanding Voting Securities beneficially owned by the Subject Person, then a Change in Control shall be deemed to have occurred. 

Notwithstanding anything in this Change in Control definition to the contrary, in the event that any amount or benefit under this
Agreement constitutes deferred compensation and the settlement of or distribution of such amount or benefit is to be triggered by a Change in Control, then such settlement or distribution shall be subject to the event constituting the Change in
Control also constituting a “change in control event” under Code Section 409A. 
 (h)
“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985. 
 (i)
“Code” means the Internal Revenue Code of 1986. 
 (j) “Company” means Heritage
Bank. 
 (k) “Competitor” means a bank, savings bank, savings and loan association, credit union, or
similar financial institution. 
 (l) “Confidential Information” means confidential or proprietary,
non-public information concerning the Company or its Affiliates, including research, development, designs, formulae, processes, specifications, technologies, marketing materials, financial and other information concerning customers and prospective
customers, customer lists, records, data, computer programs, source codes, object codes, database structures, trade secrets, proprietary business information, pricing and profitability information and policies, strategic planning, commitments,
plans, procedures, litigation, pending litigation, and other information not generally available to the public. 
 (m)
“Covered Period” means the period beginning on the date of a Change in Control and ending on the date that is 24 months after the Change in Control. 

  
 10 

 (n) “Disability” means that (i) Executive is unable to engage
in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) Executive
is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of
not less than three months under an accident or health plan covering employees of the Company. 
 (o) “Effective
Date” means [November 20, 2012]. 
 (p) “Excess Parachute Payment” has the meaning set forth in
Code Section 280G. 
 (q) “Executive” means David Spurling. 

(r) “FDIA” means the Federal Deposit Insurance Act. 

(s) “FDIC” means the Federal Deposit Insurance Corporation. 

(t) “Good Reason” means the occurrence of any one of the following events, unless Executive agrees in writing
that such event shall not constitute Good Reason: 
 (i) Executive is not reelected or is removed from the positions with the
Company that Executive holds as of the Effective Date, other than as a result of Executive’s election or appointment to positions of equal or superior scope and responsibility; provided, however, that any such failure to reelect or
removal must also constitute a “material diminution” in Executive’s authority, duties, or responsibilities for purposes of Code Section 409A; 
 (ii) The Company fails to vest Executive with the powers, authority, and support services of the positions with the Company that Executive holds as of the Effective Date; provided, however, that
any such failure on the part of the Company must also constitute a “material diminution” in Executive’s authority, duties, or responsibilities for purposes of Code Section 409A; 

(iii) The Company changes the primary employment location of Executive to a place that is more than 35 miles from Executive’s
primary employment location as of the Effective Date; or 
 (iv) The Company otherwise commits a material breach of its
obligations under this Agreement. 
 Notwithstanding any provision of this Good Reason definition to the contrary,
(A) prior to Executive’s Termination for Good Reason, Executive must give the Company written notice of the existence of any condition set forth in a clause immediately above within 90 days of its initial existence and the Company shall
have 30 days from the date of such notice in which to cure the condition giving rise to Good Reason, if curable, and if, during such 30-day period, the Company cures the condition giving rise to Good Reason, such condition shall not constitute
Good Reason and (B) any Termination for Good Reason must occur within six months of the initial existence of the condition constituting Good Reason. 
 (u) “Incumbent Board” means the members of Parent Board as of the Effective Date. 
 (v) “Inventions” means all systems, procedures, techniques, manuals, databases, plans, lists, inventions, trade secrets, copyrights, patents, trademarks, discoveries, innovations,
concepts, 

  
 11 

 
ideas, and software conceived, compiled, or developed by Executive in the course of Executive’s employment with the Company or its Affiliates and/or comprised, in whole or part, of
Confidential Information. Notwithstanding the foregoing sentence, Inventions shall not include: (i) any inventions independently developed by Executive and not derived, in whole or part, from any Confidential Information or (ii) any
invention made by Executive prior to Executive’s exposure to any Confidential Information. 
 (w)
“Parent” means Heritage Financial Corporation. 
 (x) “Parent Board” means the
Board of Directors of Parent. 
 (y) “Parties” means the Company and Executive. 

(z) “Payment Period” has the meaning set forth in Section 2(a). 

(aa) “Release” means a general release and waiver substantially in the form attached hereto as Exhibit A.

 (bb) “Restricted Area” means the area that encompasses a 25-mile radius from each banking or other
office location of the Company and its Affiliates for which Executive has provided services during the 12 month period immediately preceding Executive’s termination of employment; provided, however, that in the event of a Change
in Control, the Restricted Area shall be determined as of the date immediately preceding the Change in Control. 
 (cc)
“Restricted Period” means a period of 12 months immediately following the termination of Executive’s employment with the Company and its Affiliates for any reason. 

(dd) “Restrictive Covenant” has the meaning set forth in Section 5(c). 

(ee) “Severance Amount” means an amount equal to 150% of Executive’s Base Compensation. 

(ff) “Severance Restrictions” means any applicable statute, law, regulation, or regulatory interpretation or
other guidance, including FIL-66-2010 and any related or successor FDIC guidance, that would require the Company or any Affiliate to seek or demand repayment or return of any payments made to Executive for any reason, including the Company, an
Affiliate, or their successors later obtaining information indicating that Executive has committed, is substantially responsible for, or has violated, the respective acts or omissions, conditions, or offenses outlined under 12 C.F.R. 359.4(a)(4).

 (gg) “Specified Employee” means any person who is a “key employee” (as defined in Code
Section 416(i) without regard to paragraph (5) thereof), as determined by the Company based upon the 12-month period ending on each December 31st (such 12-month period is referred to below as the “identification period”). If
Executive is determined to be a key employee, Executive shall be treated as a Specified Employee for purposes of this Agreement during the 12-month period that begins on the April 1st following the close of the identification period. For
purposes of determining whether Executive is a key employee, “compensation” means Executive’s W-2 compensation as reported by the Company, as applicable, for a particular calendar year. 

(hh) “Substantial Business Efforts” means marketing, promotional, purchasing, sales, or solicitation activities
undertaken on behalf of the Company or an Affiliate, which include (i) in person and voice communications and (ii) either or both of (A) delivery of a quote, bid, proposal, or request for any of the foregoing or (B) visits to the
site of the actual or potential business development and other similar meetings or visits (conducted alone or with other employees of the Company or an Affiliate), where such activities would enjoy a reasonable prospect of success in the absence of
any breach of this Agreement. 

  
 12 

 (ii) “Term” has the meaning set forth in Section 1.

 (jj) “Termination” means a termination of Executive’s employment with the Company and all
Affiliates during the Term either: 
 (i) By the Company, other than (A) a Termination for Cause or (B) a termination
as a result of Executive’s death or Disability; or 
 (ii) By Executive for Good Reason. 

(kk) “Termination Date” means the date of a Termination. 

(ll) “Termination for Cause” means a termination of Executive’s employment by the Company as a result of any
of the following (in each case as determined by the Board): 
 (i) Executive’s willful and continuing
failure to perform Executive’s obligations hereunder, which failure is not remedied within five business days after receipt of written notice of such failure from the Company; 

(ii) Executive’s conviction of, or plea of nolo contendere to, a crime of embezzlement or fraud or any felony
under the laws of the United States or any state thereof; 
 (iii) Executive’s breach of fiduciary
responsibility; 
 (iv) An act of dishonesty by Executive that is materially injurious to the Company or an
Affiliate; 
 (v) Executive’s engagement in one or more unsafe or unsound banking practices that have a
material adverse effect on the Company or an Affiliate; 
 (vi) Executive’s removal or permanent suspension
from banking pursuant to Section 8(e) of the FDIA or any other applicable state or federal law; 
 (vii) A
material breach by Executive of this Agreement; 
 (viii) An act or omission by Executive that leads to a
material harm (financial or reputational) to the Company or an Affiliate in the community; or 
 (ix) A material
breach of Company Policies as may be in effect from time to time. 
 Further, a Termination for Cause shall be
deemed to have occurred if, after the termination of Executive’s employment with the Company and any Affiliate, facts and circumstances arising during the course of such employment are discovered that would have warranted a Termination for
Cause. 
 Further, with respect to subsections (i), (vii), (viii), and (ix), Executive shall be entitled to at
least 30 days’ prior written notice of the Company’s intention to terminate Executive’s employment in a Termination for Cause, which notice shall specify the grounds for the Termination for Cause; and Executive shall be provided a
reasonable opportunity to cure any 

  
 13 

 
conduct or act, if curable, alleged as grounds for the Termination for Cause, and a reasonable opportunity to present to the Company Executive’s position regarding any dispute relating to
the existence of any grounds for Termination for Cause and such suspension shall not give rise to a claim of Good Reason by Executive. 
 Further, all rights Executive has or may have under this Agreement shall be suspended automatically during (A) the pendency of any investigation (such suspension not exceeding 60 days) by the Board
or its designee, or (B) any negotiations (without regard to such 60 day limitation) between the Board or its designee and Executive regarding any actual or alleged act or omission by Executive of the type that would warrant a Termination for
Cause and any such suspension shall not give rise to a claim of Good Reason by Executive. 
 (mm) “Total
Payments” has the meaning set forth in Section 2(e). 
 (nn) “Voting Securities”
means any securities that ordinarily possess the power to vote in the election of directors without the happening of any precondition or contingency. 
 20. Survival. The provisions of Section 5 shall survive the termination of this Agreement. 
 [Signature page follows] 

  
 14 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in its name
and on its behalf, and Executive acknowledges understanding and acceptance of, and agrees to, the terms of this Agreement, all as of the Effective Date. 

 

			
	HERITAGE BANK
		
	 By:
  
	 	/s/    Brain L. Vance
		 	 Brian L. Vance

		 	 Chief Executive Officer

	
	EXECUTIVE
		
	 By:
  
	 	/s/    David A. Spurling
		 	 David A. Spurling

  
 15 

 EXHIBIT A 

AGREEMENT AND RELEASE AND WAIVER

 This AGREEMENT AND RELEASE
(“Agreement”) is made and entered into by and between [Heritage BANK] (the “Company”) and [            ]
(“Executive”). 
 WHEREAS, Executive and the Company desire to settle
fully and amicably all issues between them, including any issues arising out of Executive’s employment with the Company and the termination of that employment; and 
 WHEREAS, Executive and the Company are parties to that certain Change in Control Agreement, made and entered into as of
[            ], as amended (the “Change in Control Agreement”). 
 NOW, THEREFORE, for and in consideration of the mutual promises contained herein, and for other good and sufficient consideration, receipt of which is
hereby acknowledged, Executive and the Company (collectively, the “Parties” and, individually, each a “Party”), intending to be legally bound, hereby agree as follows: 

1. Termination of Employment. Executive’s employment with the Company shall terminate effective as of the close of business
on [            ] (the “Termination Date”). 

2. Compensation and Benefits. Subject to the terms of this Agreement, the Company shall compensate Executive under this Agreement
as follows (collectively, the “Severance Payments”): 
 (a) Severance Amount.
[            ]. 
 (b) Accrued Salary and Vacation. Executive
shall be entitled to a lump sum payment in an amount equal to Executive’s earned but unpaid annual base salary and vacation pay for the period ending on the Termination Date, with such payment to be made on the first payroll date following the
Termination Date. 
 (c) COBRA Benefits. [            ].

 (d) Executive Acknowledgement. Executive acknowledges that, subject to fulfillment of all obligations provided for
herein, Executive has been fully compensated by the Company, including under all applicable laws, and that nothing further is owed to Executive with respect to wages, bonuses, severance, other compensation, or benefits. Executive further
acknowledges that the Severance Payments (other than (b) above) are consideration for Executive’s promises contained in this Agreement, and that the Severance Payments are above and beyond any wages, bonuses, severance, other compensation,
or benefits to which Executive is entitled from the Company under the terms of Executive’s employment or under any other contract or law that Executive would be entitled to absent execution of this Agreement. 

(e) Withholding. The Severance Payments shall be treated as wages and subject to all taxes and other payroll deductions required
by law. 
 3. Termination of Benefits. Except as provided in Section 2 above or as may be required by law,
Executive’s participation in all employee benefit (pension and welfare) and compensation plans of the Company shall cease as of the Termination Date. Nothing contained herein shall limit or otherwise impair Executive’s right to receive
pension or similar benefit payments that are vested as of the Termination Date under any applicable tax-qualified pension or other plans, pursuant to the terms of the applicable plan. 

4. Release of Claims and Waiver of Rights. Executive, on Executive’s own behalf and that of Executive’s heirs,
executors, attorneys, administrators, successors, and assigns, fully releases and discharges the Company, its predecessors, successors, parents, subsidiaries, affiliates, and assigns, and 

  
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its and their directors, officers, trustees, employees, and agents, both in their individual and official capacities, and the current and former trustees and administrators of each retirement and
other benefit plan applicable to the employees and former employees of the Company, both in their official and individual capacities (the “Releasees”) from all liability, claims, demands, and actions Executive now has, may have had,
or may ever have, whether currently known or unknown, as of or prior to Executive’s execution of this Agreement (the “Release”), including liability claims, demands, and actions: 

(a) Arising from or relating to Executive’s employment or other association with the Company, or the termination of such employment,

 (b) Relating to wages, bonuses, other compensation, or benefits, 

(c) Relating to any employment or change in control contract, 
 (d) Relating to any employment law, including 
  

	 	(i)	The United States and State of Washington Constitutions, 

  

	 	(ii)	The Civil Rights Act of 1964, 

  

	 	(iii)	The Civil Rights Act of 1991, 

  

	 	(iv)	The Equal Pay Act, 

  

	 	(v)	The Employee Retirement Income Security Act of 1974, 

  

	 	(vi)	The Age Discrimination in Employment Act (the “ADEA”), 

  

	 	(vii)	The Americans with Disabilities Act, 

  

	 	(viii)	Executive Order 11246, and 

  

	 	(ix)	Any other federal, state, or local statute, ordinance, or regulation relating to employment, 

(e) Relating to any right of payment for disability, 
 (f) Relating to any statutory or contractual right of payment, and 
 (g) For
relief on the basis of any alleged tort or breach of contract under the common law of the State of Washington or any other state, including defamation, intentional or negligent infliction of emotional distress, breach of the covenant of good faith
and fair dealing, promissory estoppel, and negligence. 
 Executive acknowledges that Executive is aware that statutes exist
that render null and void releases and discharges of any claims, rights, demands, liabilities, actions, and causes of action that are unknown to the releasing or discharging party at the time of execution of the release and discharge. Executive
waives, surrenders, and shall forego any protection to which Executive would otherwise be entitled by virtue of the existence of any such statutes in any jurisdiction, including the State of Washington. 

5. Exclusions from General Release. Excluded from the Release are any claims or rights that cannot be waived by law, as well as
Executive’s right to file a charge with an administrative agency or participate in any agency investigation. Executive is, however, waiving the right to recover any money in connection with a charge or investigation. Executive is also waiving
the right to recover any money in connection with a charge filed by any other individual or by the Equal Employment Opportunity Commission or any other federal or state agency. 

  
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 6. Covenant Not to Sue. 

(a) A “covenant not to sue” is a legal term that means Executive promises not to file a lawsuit in court. It is different from
the release of claims and waiver of rights contained in Section 4 above. Besides waiving and releasing the claims covered by Section 4 above, Executive shall never sue the Releasees in any forum for any reason covered by the
Release. Notwithstanding this covenant not to sue, Executive may bring a claim against the Company to enforce this Agreement, to challenge the validity of this Agreement under the ADEA or for any claim that arises after execution of this Agreement.
If Executive sues any of the Releasees in violation of this Agreement, Executive shall be liable to them for their reasonable attorneys’ fees and costs (including the costs of experts, evidence, and counsel) and other litigation costs incurred
in defending against Executive’s suit. In addition, if Executive sues any of the Releasees in violation of this Agreement, the Company can require Executive to return all but a sum of $100 of the Severance Payments, which sum is, by itself,
adequate consideration for the promises and covenants in this Agreement. In that event, the Company shall have no obligation to make any further Severance Payments. 
 (b) If Executive has previously filed any lawsuit against any of the Releasees, Executive shall immediately take all necessary steps and execute all necessary documents to withdraw or dismiss such lawsuit
to the extent Executive’s agreement to withdraw, dismiss, or not file a lawsuit would not be a violation of any applicable law or regulation. 
 7. Representations by Executive. Executive warrants that Executive is legally competent to execute this Agreement and that Executive has not relied on any statements or explanations made by the
Company or its attorneys. Executive acknowledges that Executive has been afforded the opportunity to be advised by legal counsel regarding the terms of this Agreement, including the Release. Executive acknowledges that Executive has been offered
at least 21 days to consider this Agreement. After being so advised, and without coercion of any kind, Executive freely, knowingly, and voluntarily enters into this Agreement. Executive acknowledges that Executive may revoke this Agreement within
seven days after Executive has signed this Agreement and acknowledges understanding that this Agreement shall not become effective or enforceable until seven days after Executive has signed this Agreement (the “Effective Date”), as
evidenced by the date set forth below Executive’s signature on the signature page hereto. Any revocation must be in writing and directed to [            ]. If sent by mail, any
revocation must be postmarked within the seven-day period described above and sent by certified mail, return receipt requested. 

8. Restrictive Covenants. Section 5 of the Change in Control Agreement (entitled “Restrictive Covenants”), shall
continue in full force and effect as if fully restated herein. 
 9. Non-Disparagement. Executive shall not engage in any
disparagement or vilification of the Releasees, and shall refrain from making any false, negative, critical, or disparaging statements, implied or expressed, concerning the Releasees, including regarding management style, methods of doing business,
the quality of products and services, role in the community, or treatment of employees. Executive shall do nothing that would damage the Company’s business reputation or goodwill. 

10. Company Property. 
 (a) Executive shall return to the Company all information, property, and supplies belonging to the Company or any of its affiliates, including any confidential or proprietary information, Company autos,
keys (for equipment or facilities), laptop computers and related equipment, cellular phones, smart phones or PDAs (including SIM cards), security cards, corporate credit cards, and the originals and all copies of all files, materials, and documents
(whether in tangible or electronic form) containing confidential or proprietary information or relating to the business of the Company or any of its affiliates. 
 (b) Executive shall not, at any time on or after the Termination Date, directly or indirectly use, access, or in any way alter or modify any of the databases, e-mail systems, software, computer systems,
or hardware or other electronic, computerized, or technological systems of the Company or any of its affiliates. Executive acknowledges that any such conduct by Executive would be illegal and would subject Executive to legal action by the Company,
including claims for damages and/or appropriate injunctive relief. 

  
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 11. No Admissions. The Company denies that the Company or any of its affiliates, or
any of their employees or agents, has taken any improper action against Executive, and this Agreement shall not be admissible in any proceeding as evidence of improper action by the Company or any of its affiliates or any of their employees or
agents. 
 12. Confidentiality of Agreement. Executive shall keep the existence and the terms of this Agreement
confidential, except for Executive’s immediate family members and Executive’s legal and tax advisors in connection with services related hereto and except as may be required by law or in connection with the preparation of tax returns.

 13. Non-Waiver. The Company’s waiver of a breach of this Agreement by Executive shall not be construed or operate
as a waiver of any subsequent breach by Executive of the same or of any other provision of this Agreement. 
 14. Applicable
Law. All questions concerning the construction, validity, and interpretation of this Agreement and the performance of the obligations imposed by this Agreement shall be governed by the internal laws of the State of Washington applicable to
agreements made and wholly to be performed in such state without regard to conflicts of law provisions of any jurisdiction. 

15. Legal Fees. In the event that either Party commences mediation, arbitration, or litigation to enforce or protect such
Party’s rights under this Agreement, the prevailing Party in any such action shall be entitled to recover reasonable attorneys’ fees and costs (including the costs of experts, evidence, and counsel) and other costs relating to such action,
in addition to all other entitled relief, including damages and injunctive relief. 
 16. Entire Agreement. This
Agreement sets forth the entire agreement of the Parties regarding the subject matter hereof, and shall be final and binding as to all claims that have been or could have been advanced on behalf of Executive pursuant to any claim arising out of or
related in any way to Executive’s employment with the Company and the termination of that employment. 
 17.
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement. 

18. Successors. This Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns.

 19. Enforcement. The provisions of this Agreement shall be regarded as divisible and separable and if any provision
should be declared invalid or unenforceable by a court of competent jurisdiction, the validity and enforceability of the remaining provisions shall not be affected thereby. If the scope of any restriction or requirement contained in this Agreement
is too broad to permit enforcement of such restriction or requirement to its full extent, then such restriction or requirement shall be enforced to the maximum extent permitted by law, and Executive hereby consents that any court of competent
jurisdiction may so modify such scope in any proceeding brought to enforce such restriction or requirement. In addition, Executive stipulates that breach by Executive of restrictions and requirements under this Agreement will cause irreparable
damage to the Releasees in the case of Executive’s breach and that the Company would not have entered into this Agreement without Executive binding Executive to these restrictions and requirements. In the event of Executive’s breach of
this Agreement, in addition to any other remedies the Company may have, and without bond and without prejudice to any other rights and remedies that the Company may have for Executive’s breach of this Agreement, the Company shall be relieved of
any obligation to provide Severance Payments and shall be entitled to an injunction to prevent or restrain any such violation by Executive and all persons directly or indirectly acting for or with Executive. Executive stipulates that the restrictive
period for which the Company is entitled to an injunction shall be extended in for a period that equals the time period during which Executive is or has been in violation of the restrictions contained herein. 

  
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 20. Construction. In this Agreement, unless otherwise stated, the following uses
apply: (a) references to a statute shall refer to the statute and any amendments and any successor statutes, and to all regulations promulgated under or implementing the statute, as amended, or its successors, as in effect at the relevant time;
(b) in computing periods from a specified date to a later specified date, the words “from” and “commencing on” (and the like) mean “from and including, “ and the words “to,” “until,” and
“ending on” (and the like) mean “to, but excluding”; (c) references to a governmental or quasi-governmental agency, authority, or instrumentality shall also refer to a regulatory body that succeeds to the functions of the
agency, authority, or instrumentality; (d) indications of time of day shall be based upon the time applicable to the location of the principal headquarters of the Company; (e) the words “include,” “includes,” and
“including” (and the like) mean “include, without limitation,” “includes, without limitation,” and “including, without limitation,” (and the like) respectively; (f) all references to preambles, recitals,
sections, and exhibits are to preambles, recitals, sections, and exhibits in or to this Agreement; (g) the words “hereof,” “herein,” “hereto,” “hereby,” “hereunder,” (and the like) refer to this
Agreement as a whole (including exhibits); (h) any reference to a document or set of documents, and the rights and obligations of the parties under any such documents, means such document or documents as amended from time to time, and all
modifications, extensions, renewals, substitutions, or replacements thereof; (i) all words used shall be construed to be of such gender or number as the circumstances and context require; (j) the captions and headings of preambles,
recitals, sections, and exhibits appearing in or attached to this Agreement have been inserted solely for convenience of reference and shall not be considered a part of this Agreement, nor shall any of them affect the meaning or interpretation of
this Agreement or any of its provisions; and (k) all accounting terms not specifically defined herein shall be construed in accordance with GAAP. 
 21. Future Cooperation. In connection with any and all claims, disputes, negotiations, governmental, internal or other investigations, lawsuits, or administrative proceedings (the “Legal
Matters”) involving the Company or any affiliate, or any of their current or former officers, employees or board members (collectively, the “Disputing Parties” and, individually, each a “Disputing Party”),
Executive shall make himself reasonably available, upon reasonable notice from the Company and without the necessity of subpoena, to provide information and documents, provide declarations and statements regarding a Disputing Party, meet with
attorneys and other representatives of a Disputing Party, prepare for and give depositions and testimony, and otherwise cooperate in the investigation, defense, and prosecution of any and all such Legal Matters, as may, in the good faith and
judgment of the Company, be reasonably requested. The Company shall consult with Executive and make reasonable efforts to schedule such assistance so as not to materially disrupt Executive’s business and personal affairs. The Company shall
reimburse all reasonable expenses incurred by Executive in connection with such assistance, including travel, meals, rental car, and hotel expenses, if any; provided such expenses are approved in advance by the Company and are documented in a
manner consistent with expense reporting policies of the Company as may be in effect from time to time. 
 IN
WITNESS WHEREOF, the Parties have duly executed this Agreement as of the dates set forth below their respective signatures below. 
  

									
	[HERITAGE BANK]	 		 	EXECUTIVE
				
	By:	 	 	 		 	 
		 	[Name]	 		 		 	[Name]
		 	[Title]	 		 		 	
					
	 Date:
	 	 	 		 	 Date:
	 	 

  
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