Document:

Employment Agreement between the Company and Brian L. Vance

 Exhibit 10.13 
 AMENDED AND RESTATED 
 EMPLOYMENT AGREEMENT 
 BY AND AMONG 
 HERITAGE FINANCIAL
CORPORATION, 
 HERITAGE BANK, 
 CENTRAL VALLEY BANK, 
 AND 
 BRIAN L. VANCE 
 THIS EMPLOYMENT AGREEMENT is made and entered into effective as of the 1st day of October 2006, by
and between HERITAGE FINANCIAL CORPORATION, a Washington corporation (the “Company”), HERITAGE BANK, a Washington banking corporation (“Heritage Bank”), CENTRAL VALLEY BANK, a Washington banking corporation (“CV Bank”),
and BRIAN L. VANCE (“Executive”). 
 RECITALS 
  

	1.	The Company is the parent corporation of Heritage Bank and Central Valley Bank. The Banks are first tier wholly owned subsidiaries of the Company. 

  

	2.	Executive is the President and Chief Executive Officer and a Board member of the Company and Heritage Bank and Vice Chairman of the Board of Directors and Chief Executive Officer of
CV Bank (hereinafter, the Company, Heritage Bank, and CV Bank are collectively referred to as the “Employer”), and has developed an intimate and thorough knowledge of Employer’s business methods and operations.

  

	3.	The retention of the Executive’s services for and on behalf of the Employer is of material importance to the preservation and enhancement of the value of the Employer’s
business. 

  

	4.	This Agreement has been amended and restated to meet the requirements of Section 409A of the Internal Revenue Code of 1986. 

 In consideration of the mutual promises made in this Agreement, the parties agree as follows: 
 AGREEMENT 
  

	1.	EMPLOYMENT. 

 Employer hereby employs Executive and
Executive hereby accepts employment with Employer on the terms and conditions set forth in this Agreement. 
  

	2.	TERM. 

 The original term of this Agreement will
commence as of the date first above written and will continue until September 30, 2009, after which time this Agreement will automatically renew for additional terms of one year each. Subject to the terms and conditions set forth below, this
Agreement may be terminated by either party by giving written notice to the other party at least one year prior to the expiration date of the original term or any renewal term. 
  

	3.	DUTIES. 

  

	 	3.1	Executive will be the President and Chief Executive Officer of the Company, Heritage Bank, and CV Bank and maintain such other positions with subsidiaries or affiliates as the
respective Boards of Directors of the Company, Heritage Bank, and CV Bank (collectively, the “Board”) shall determine. In such capacities, Executive will render those executive management services and perform those tasks in connection with
the affairs of the Employer which are normal and customary to the positions assigned and shall perform the essential functions and other responsibilities and maintain the level of education, skill, and experience as set forth on the Position
Description in Exhibit “A” attached hereto and included herein by reference. Executive will be the person to whom all other officers of the Company and, as appropriate, subsidiaries or affiliates of Employer, shall report.

  

 1 

	 	3.2	Executive will perform such other duties as may be appropriate to his office and as may be prescribed from time to time by the Board. Executive may delegate such duties as he sees
fit to other junior officer(s) of the Employer. 

  

	 	3.3	Executive will devote his best efforts and all necessary time, attention, and effort to the business and affairs of the Employer and any affiliated companies as such business and
affairs now exist or hereafter may be changed or supplemented, in order to properly discharge his responsibilities under this Agreement. 

  

	4.	SALARY, BONUS, AND OTHER COMPENSATION. 

  

	 	4.1	Base Salary. 

  

	 	4.1.1	During the term of this Agreement, Employer will pay to Executive an annual base salary of not less than $200,000 per year effective beginning on October 1, 2006. Payment of
such salary will be made in accordance with Employer’s normal payroll practices applicable to senior executives and will be subject to required withholding for federal income tax and other purposes. 

  

	 	4.1.2	The Company will guarantee payment of any portion of Executive’s compensation that may be allocated to the Banks or any other subsidiary or affiliate of the Company.

  

	 	4.1.3	If this Agreement terminates prior to the end of the original or any renewal term, then Employer will pay Executive such amount of Executive’s then-current annual base salary
as is provided in Section 5. 

  

	 	4.2	Bonus. During the term of this Agreement, Executive will be eligible to participate in Employer’s Management Incentive Plan or any successor compensation plan for senior
management of Employer as may be established by the Board or the Employer’s Compensation Committee, which plan shall include specific performance targets, as the same shall be determined and/or amended on an annual basis by the Board or
Employer’s Compensation Committee. 

  

	 	4.3	Benefits. In addition to the base salary and bonus payable to Executive pursuant to this Section 4, Executive will be entitled to the following benefits, which shall not
be less than those provided in benefit programs generally maintained for senior executives of the Employer: 

  

	 	4.3.1	Participation in health insurance, disability insurance, and other health and welfare benefit programs generally available to senior executives; 

  

	 	4.3.2	Participation in retirement plans, including defined contribution and 401(k) Plans and any supplements or additions to those plans; 

  

	 	4.3.3	Participation in stock bonus or stock option plans generally available to senior executives of the Employer; 

  

	 	4.3.4	Other employment benefits, as may be approved from time to time by Employer; 

  

	 	4.3.5	Memberships in clubs as deemed appropriate; 

  

	 	4.3.6	Reimbursement for Executive’s reasonable expenses incurred in promoting the business of Employer. Executive shall present from time to time itemized accounts of any such
expenses, within limits of Employer policy and the rules and regulations of the Internal Revenue Service; and 

  

	 	4.3.7	An automobile furnished by the Bank under the same terms as an automobile is provided to Executive on the effective date of this Agreement. 

  

 2 

	5.	TERMINATION OF AGREEMENT. 

  

	 	5.1	Early Termination. 

  

	 	5.1.1	This Agreement may be terminated at any time by either the Company or Executive and shall terminate automatically upon Executive’s death or Disability (as defined in
Section 8). No termination by the Company other than termination for Cause (as defined below) shall prejudice the Executive’s right to compensation or other benefits under this Agreement. 

  

	 	5.1.2	Except as provided in Section 6 with respect to a Change in Control, if Executive voluntarily terminates his employment effective before the end of the original or any renewal
term without “Good Reason” as defined in Section 8, Executive will be entitled to such compensation and benefits as he would have the right to receive upon termination for Cause under subsection 5.1.4, and Executive’s unvested
stock options, if any, shall terminate in the manner provided in such subsection. 

  

							
		  	5.1.3	  	A.	  	Except in the event of a Change in Control as provided in Section 6, if (i) Employer terminates this Agreement without Cause or (ii) Executive terminates this Agreement for Good
Reason, and either termination is effective before the end of the original or any renewal term, Employer shall pay Executive, upon the effective date of such termination, all salary and benefits earned and all reimbursable expenses incurred through
such termination date and, in addition, a severance benefit in an amount equal to the greater of one times the amount of his then-current base annual salary, or the amount of such salary which would otherwise have been paid to Executive during the
then-remaining term of the Agreement. In such event, all forfeiture provisions regarding restricted stock awards or vesting requirements regarding options shall lapse or be considered completed as of the effective date of
termination.
		  		  	B.	  	If the Executive is deemed to be a “Specified Employee,” as defined herein, then payment of his benefits under this Section 5.1.3 that is payable because Executive’s
employment terminates as set forth in the preceding paragraph A, shall be delayed until six (6) months and one day after the date the benefit under Section 5.1.3 is payable, unless the Executive dies between such date and the payment date
at which time all such benefits shall then commence.

  
  

	 	5.1.4	If Employer terminates this Agreement for Cause effective before the end of the original or any renewal term, Employer shall pay Executive upon the effective date of such
termination only such salary earned and expenses reimbursable hereunder incurred through such termination date. Executive shall have no right to receive compensation or other benefits for any period after termination for Cause, and in the case of
termination for Cause before the effective date of a Change in Control, Executive’s unvested stock options, if any, shall terminate immediately. 

  

	 	5.1.5	In the event of termination of this Agreement by reason of Executive’s death or Disability, Employer shall pay Executive only such salary earned and expenses reimbursable
hereunder incurred through the date of Executive’s death or the effective date of Executive’s Disability, and all forfeiture provisions regarding restricted stock awards or vesting requirements concerning options shall lapse or be
considered completed, as applicable. 

  

	 	5.1.6	The Board, acting in good faith, shall make the final determination of whether Executive is suffering under any Disability, taking into account the requirements of Section 409A
of the Internal Revenue Code and the definition of “Disability” as set forth in Section 8.3 herein and, for purposes of making such determination, may require Executive to submit himself to a physical examination by a physician
mutually agreed upon by Executive and the Company Board at Employer’s expense. For purposes of this Agreement, the date of such determination shall constitute the effective date of such Disability. 

  

	 	 5.2
	 Exercise of Stock Options. Executive’s rights to vested but unexercised stock options will continue for a
period of one year after early termination (provided that the terms of any option grant agreement shall not be extended by this provision), except in the case of a termination for Cause pursuant to Section 5.1.4 or without Good Reason pursuant
to Section 5.1.2. Notwithstanding the preceding sentence, no option shall be extended beyond the later of the end of the calendar year in which the option would have otherwise expired or 2  1/2 months after the date the option would otherwise expire. 

  

 3 

	6.	CHANGE IN CONTROL. 

  

	 	6.1	Benefits. The parties recognize that a “Change in Control,” as defined below, could be detrimental to Executive’s continued employment. Accordingly, in order
to give further consideration to the Executive to enter into this Agreement, if there is a Change in Control and either (a) within 365 days following the effective date of such Change in Control Executive or Employer (or its successor)
terminates Executive’s employment; or (b) at any time from and after 180 days prior to the public announcement by Employer or any other party of the transaction which will result in the Change in Control, Employer (or its successor)
terminates Executive’s employment without Cause, then Executive, upon the date of termination of his employment, subject to the remaining provisions of this Section 6.1, shall be paid by Employer (or its successor) a severance benefit in
an amount equal to the greater of two times the amount of his then-current base annual salary or the amount of such salary which would otherwise have been paid to Executive during the then-remaining term of this Agreement, and vesting of all stock
options and lapse of all restrictions with respect to restricted stock awards shall occur. As a condition to receipt of the benefits described in this Section 6, upon request by the Company Board, Executive will not voluntarily terminate his
employment with Employer until after the effective date of the Change in Control in order to assist the Bank and the Company in evaluating and effectuating the Change in Control. 

 If the Executive is deemed to be a “Specified Employee,” as defined herein, then payment of his benefit under this Section 6.1 shall be
delayed until six (6) months and one day after the date the benefit under Section 6.1 is payable, unless the Executive dies between such date and the payment date at which time all such benefits shall then commence. 
  

	 	6.2	Reimbursement. In the event the provisions of this Section 6 result in imposition of a tax on Executive under the provisions of Internal Revenue Code Section 4999,
Employer agrees to reimburse Executive for the same, exclusive of any tax imposed by reason of receipt of reimbursement under this Section 6.2. 

  

	7.	RESTRICTIVE COVENANT. 

  

	 	7.1	Noncompetition. Executive agrees that, except as otherwise set forth in this Agreement, he will not, during the term of this Agreement and for a period of two years after his
termination, directly or indirectly, become interested in, as principal shareholder, director, or officer, any financial institution that competes with Employer or its successor or any of its affiliates within the State of Washington, provided that
such covenant shall not apply in the event that Executive’s employment is terminated without Cause or for Good Reason. The provisions restricting competition by Executive may be waived by action of the Board. Executive recognizes and agrees
that any breach of this covenant by Executive will cause immediate and irreparable injury to Employer, and Executive hereby authorizes recourse by Employer to injunction and/or specific performance, as well as to other legal or equitable remedies to
which Employer may be entitled. 

  

	 	7.2	Noninterference. During the noncompetition period described in Section 7.1, Executive shall not solicit or attempt to solicit any other employee of Employer or its
affiliates to leave the employ of those companies or in any way interfere with the relationship between Employer and any other employee of Employer. 

  

	 	7.3	Interpretation. If a court or any other administrative body with jurisdiction over a dispute related to this Agreement should determine that the restrictive covenant set
forth above is unreasonably broad, the parties hereby authorize said court or administrative body to narrow same so as to make it reasonable, given all relevant circumstances, and to enforce same. The covenants in this paragraph shall survive
termination of this Agreement. 

  

	8.	DEFINITIONS. 

  

	 	8.1	Cause. “Cause” shall mean only (i) willful misfeasance or gross negligence in the performance of his duties, (ii) conduct demonstrably and significantly
harmful to the Company (which would include willful violation of any final cease and desist order applicable to Employer or a financial institution subsidiary), or (iii) conviction of a felony. 

  

 4 

	 	8.2	Change in Control. For purposes of this Agreement, “Change in Control” shall mean a change in the ownership of the Company or Heritage Bank, a change in the
effective control of the Company or Heritage Bank or a change in the ownership of a substantial portion of the assets of the Company or Heritage Bank, in each case as provided under Section 409A of the Internal Revenue Code of 1986, as amended,
and the regulations thereunder. For the purposes of this Section 8.2, a change in the ownership of the stock or assets of Central Valley Bank shall not be deemed to be a change in the ownership of a substantial portion of the assets of the
Company or Heritage Bank. 

  

	 	8.3	Disability. “Disability” means the Executive (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan
covering employees of the Employer. 

  

	 	8.4	Good Reason. “Good Reason” shall mean (i) termination by Executive as a result of any material breach of this Agreement by Employer, (ii) termination by
Executive or Employer following a Change in Control pursuant to Section 6.1, (iii) Any reduction of Executive’s salary or any reduction or elimination of any compensation or benefit plan, which reduction or elimination is not of
general application to substantially all employees of the Employer or such employees of any successor entity or of any entity in control of the Employer, or (iv) the assignment to Executive of any authority or duties substantially inconsistent
with Executive’s position. 

  

	 	8.5	Specified Employee. The term “Specified Employee” is a key employee (as defined in IRC Section 416(i) without regard to paragraph (5) thereof) of a
corporation, any stock in which is publicly traded on an established securities market or otherwise, and as is further defined in Proposed Regulations 1.409A-1(i)(1) or any other regulation finally adopted with respect to IRC Section 416(i).

  

	9.	MISCELLANEOUS. 

  

	 	9.1	This Agreement contains the entire agreement between the parties with respect to Executive’s employment with Employer and his covenant not to compete with Employer, and is
subject to modification or amendment only upon amendment in writing signed by both parties. 

  

	 	9.2	This Agreement shall bind and inure to the benefit of the heirs, legal representatives, successors, and assigns of the parties. The provisions of Section 7.1 of this Agreement
are intended to confer upon Employer and any of its subsidiaries and affiliates the benefits of Executive’s covenant not to compete. 

  

	 	9.3	If any provision of this Agreement is invalid or otherwise unenforceable, all other provisions shall remain unaffected and shall be enforceable to the fullest extent permitted by
law. 

  

	 	9.4	Notwithstanding any other provision in this Agreement, Employer shall make no payment of any severance benefit provided for herein to the extent that such payment would be
prohibited by the provisions of Part 359 of the regulations of the Federal Deposit Insurance Corporation (“FDIC”) as the same may be amended from time to time, and if such payment is so prohibited, Employer shall use its best efforts to
secure the consent of the FDIC or other applicable banking agencies to make such payments in the highest amount permissible, up to the amount provided for in this Agreement. 

  

	 	9.5	This Agreement is made with reference to and is intended to be construed in accordance with the laws of the State of Washington. Venue for any action arising out of or concerning
this Agreement shall lie in Thurston County, Washington. In the event of a dispute under this Agreement not involving injunctive relief, the dispute shall be arbitrated pursuant to the Superior Court Mandatory Arbitration Rules (“MAR”)
adopted by the Washington State Supreme Court, irrespective of the amount in controversy. This Agreement shall be deemed as stipulation to that effect pursuant to MAR 1.2 and 8.1. The arbitrator, in his or her discretion, may award attorney’s
fees to the prevailing party or parties. 

  

 5 

	 	9.6	This Agreement replaces any and all previous employment and severance agreements including the Severance Agreement between Heritage Savings Bank and Brian L. Vance dated
October 1, 1997 and the Employment Agreement among Heritage Financial Corporation, Heritage Bank, and Brian L. Vance dated June 1, 2001. 

  

	 	9.7	Any notice required to be given under this Agreement to either party shall be given by personal service or by depositing a copy thereof in the United States registered or certified
mail, postage prepaid, addressed to the following address, or such other address as addressee shall designate in writing: 

  

			
	Employer:	  	Heritage Bank
		  	201 5th Avenue S.W.
		  	Olympia, WA 98501
		  	Attn: Donald V. Rhodes - Chairman
		
	Executive:	  	Brian L. Vance
		  	201 5th Avenue S.W.
		  	Olympia, WA 98501

  

	 	9.8	Notwithstanding any other provision of this Agreement, it is intended that any payment or benefit which is provided pursuant to or in connection with this Agreement shall be
provided and paid in a manner, and at such time and in such form, as complies with the applicable requirements of Section 409A of the Code to avoid the unfavorable tax consequences provided therein for non-compliance. Any provision in this
Agreement that is determined to violate the requirements of Section 409A shall be void and without effect. To the extent permitted under Section 409A, the parties shall reform the provision, provided such reformation shall not subject the
Executive to additional tax or interest and Executive shall not be required to incur any additional compensation as a result of the reformation. In addition, any provision that is required to appear in this Agreement that is not expressly set forth
shall be deemed to be set forth herein, and this Agreement shall be administered in all respects as if such provision were expressly set forth. References in this Agreement to Section 409A of the Internal Revenue Code include rules,
regulations, and guidance of general application issued by the Department of the Treasury under Internal Revenue Code Section 409A. 

 IN
WITNESS WHEREOF, the parties have executed this Agreement effective on the date first above written. 
  

							
	HERITAGE FINANCIAL CORPORATION	 	HERITAGE BANK
				
	By:	  	 /s/ Donald V. Rhodes
	 	By:	 	 /s/ Donald V. Rhodes

	Printed Name:	  	Donald V. Rhodes	 	Printed Name:	 	Donald V. Rhodes
	Title:	  	Chairman	 	Title:	 	Chairman

  

			
	CENTRAL VALLEY BANK
		
	By:	 	 /s/ Donald V. Rhodes

	Printed Name:	 	Donald V. Rhodes
	Title:	 	Chairman
	
	EXECUTIVE:
	/s/ Brian L. Vance
	Brian L. Vance

  

 6 

 Exhibit “A” 
 Position Description 
 For Brian L. Vance 
  

			
	POSITION:	  	PRESIDENT AND CHIEF EXECUTIVE OFFICER
		  	HERITAGE FINANCIAL CORPORATION
		  	PRESIDENT AND CHIEF EXECUTIVE OFFICER
		  	HERITAGE BANK
		  	VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER
		  	CENTRAL VALLEY BANK

 REPORTS TO:    BOARD OF DIRECTORS 
 FLSA STATUS: EXEMPT 
 Essential Functions: 
  

	1.	Provides an exceptional level of customer service and customer satisfaction; enhancing and supporting the mission and vision statements of Heritage Financial Corporation and its
subsidiaries. Provides leadership and management to ensure that the mission and core values of the corporation are put into practice. Fosters a success oriented, accountable environment within the corporation. 

  

	2.	Serves as member of the Board of Directors of Heritage Financial Corporation, Heritage Bank, and Central Valley Bank. 

  

	3.	Coordinates the setting of the monthly agenda for Board meetings and the annual shareholder meetings with Heritage Financial Corporation Chairman and Heritage Bank CFO.

 Performs duties as necessary to ensure continued safety and soundness of the
corporation 
  

	4.	. 

  

	5.	Communicates directly to the Board of Directors advising them of key risk issues, financial performance and trends, market issues and trends, performance to Strategic Plan and all
applicable information to keep the Board well advised in all aspects of the corporation. 

  

	6.	Develops and recommends to the Board for approval the strategic vision for the corporation and for the management and overall profitability of the corporation. Establishes short,
medium, and long-term objectives and implement adequate operating plans to meet those objectives embedded in a viable business plan. 

  

	7.	Plans, leads, organizes, and controls corporate activities to minimize risk exposure, and to ensure that the corporation meets its long and short-term goals and objectives.

  

	8.	Maintains awareness of the latest technology, banking matters, regulatory developments, and competitive environment to provide guidance and planning to the Board of Directors as
well as officers and staff. 

  

	9.	Explores new markets for future locations, as well as seek strategic alliances/joint ventures to optimize and leverage the corporation’s position. 

  

	10.	Develops and recommends to the Board all capital management strategies, including stock and cash dividend policies to provide adequate capital levels to support the future growth of
the corporation and shareholder expectations. 

  

	11.	Oversees the corporation’s lending procedures to meet Board’s expectations of asset quality for the corporation. Approves major credits up to $6,000,000 and recommends for
Board approval loans above $6,000,000. 

  

	12.	Ensures that the corporation’s rules, policies, and procedures related to financial reporting, risk management, lending, operations, regulatory compliance, corporate
governance, etc. are complied with. 

  

	13.	Oversees the development, communication, and implementation of effective growth strategies and processes consistent with the Strategic Plan. 

  

	14.	Oversees shareholder relations including representing Heritage Financial Corporation at corporate, investor, and industry meetings in order to educate and generate market interest
in the corporation. 

  

	15.	Motivates and leads a high performance management team; attracts, recruits, and retains members of the executive team and lenders. 

  

	16.	Oversees the aggressive marketing of financial solutions with the goal of winning new clients and expanding existing relationships. Assists other officers with direct calls on
large, influential clients and important prospective clients. 

  

	17.	Represents the corporation and provides leadership in key community activities including business, charitable, civic, and social organizations. 

  

 1 

	18.	In the absence of the President of Central Valley Bank may temporarily act in his/her capacity until a permanent replacement is appointed. 

 Other Responsibilities: 
  

	1.	May be necessary to work long or extended hours. 

  

	2.	Must be able to travel within region and nationally to perform job duties and represent the corporation. 

 Education, Skills, and Experience: 
  

	1.	Ability to read, speak, and understand English well with effective written and oral business communication skills. Ability to make persuasive speeches and presentations on financial
or complex topics to the Board and outside investors. 

  

	2.	Prefer college degree in Business, Finance, or related field or applicable experience. 

  

	3.	A strategic visionary with sound technical skills, analytical ability, good judgment, and strong customer and growth focus. 

  

	4.	Ten years finance/commercial banking experience at executive level with a demonstrated ability to lead a team and expand profitability. 

  

	5.	Must have in-depth knowledge of and experience in Pacific Northwest markets, preferably the Puget Sound and Central Washington regions. 

  

	6.	Desired personal characteristics include: professional sophistication, political awareness, creativity, energy, self-directed, and balanced ego. 

  

	7.	Maintain a record of business development and participation in community activities. 

  

									
	Name:	  	  
	 		 	Date:	 	  

  

 2Employment Agreement between Central Valley Bank and D. Michael Broadhead

 Exhibit 10.14 
 CENTRAL VALLEY BANK 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”), is made and entered into effective as of April 1, 2007 (“Effective Date”), between
CENTRAL VALLEY BANK (the “Bank”) and D. MICHAEL BROADHEAD (“Executive”). 
 RECITALS 
  

	A.	The Bank is a wholly-owned subsidiary of Heritage Financial Corporation. (“Heritage”). 

  

	B.	Executive is presently the Bank’s President. The Bank wishes to continue Executive’s employment in that capacity under the terms and conditions of this Agreement.

  

	C.	Under the terms of this Agreement, Executive wishes to continue his employment with the Bank (or its successor, if any) for the period provided in this Agreement.

 AGREEMENT 
 The parties agree as follows. 
  

	1.	Employment. The Bank will continue Executive’s employment during the Term and any Extended Term (as defined below), and Executive accepts employment by the Bank,
on the terms and conditions set forth in this Agreement. Executive’s title will be “President.” 

  

	2.	Effective Date and Term. 

  

	 	(a)	Term. The initial term of this Agreement (“Term”) commences on the Effective Date and terminates on March 31, 2008. 

  

	 	(b)	Automatic Renewal. This Agreement shall renew automatically at the end of the Term for one additional year (an “Extended Term”) and shall renew automatically at the
end of the Extended Term for additional successive one year terms (each successive one year term also an “Extended Term”) unless Executive gives the Bank or Bank gives the Executive written notice at least 90 days before the end of the
Term or an Extended Term (as the case may be) of his or its intent that this Agreement not be renewed. 

  

	3.	Duties. Executive will faithfully and diligently perform the duties assigned to Executive from time to time by the Bank’s board of directors, by
Heritage’s board of directors, or by the President or CEO of Heritage. In the event that Heritage elects to merge the Bank into Heritage Bank or some other affiliate or Heritage, then the title and duties of Executive with respect to the entity
surviving such merger shall be determined by the President and CEO of Heritage or his designee. Executive will use his best efforts to perform his duties and will devote his full time and attention to these duties during working hours during the
Term and any Extended Term. These duties will include, without limitation, the following: 

  

	 	(a)	Bank Performance. Executive will be responsible for all aspects of the Bank’s performance, including, without limitation, directing that daily operational and managerial
matters are performed in a manner consistent with Heritage’s and the Bank’s policies. These duties will also include formulating and implementing the Bank’s expansion strategies and performing all other tasks in connection with the
Bank’s management and affairs that are normal and customary to Executive’s position. 

  

	 	(b)	Integration with Heritage. Executive will continue to participate in the integration of the Bank’s commercial banking activities with Heritage’s existing commercial
operations. 

  

 1 

	 	(c)	Development and Preservation of Business. Executive will be responsible for the development and preservation of banking relationships and other business development efforts
(including appropriate civic and community activities) in the Bank’s market areas. 

  

	 	(d)	Report to Board. Executive will report directly to the Bank’s CEO or to the CEO of Heritage as designated from time to time. The Bank’s or Heritage’s board of
directors may, from time to time, modify Executive’s title or add to, delete from, or modify Executive’s performance responsibilities to accommodate management succession, as well as any other management objectives of the Bank or of
Heritage subject to Section 10(b) of this Agreement. Executive will assume any additional positions, duties, and responsibilities as may reasonably be requested of him with or without additional compensation, as appropriate and consistent with
Sections 3(a), 3(b), and 3(c) of this Agreement. 

  

	4.	Salary; Vacation. During the Term, Executive will receive a base salary of not less than $148,512 per year, to be paid in accordance with the Bank’s
regular payroll schedule for executives. During any Extended Term, Executive will receive a base salary of not less than his base salary at the time of the commencement of the then current Extended Term, to be paid in accordance with the Bank’s
regular payroll schedule for executives. Executive will be entitled to four weeks of vacation during the Term or any Extended Term. Payment, if any, for unused vacation time will be according to bank policy in effect at the time.

  

	5.	Incentive Compensation. The Bank’s board of directors, subject to ratification by Heritage’s board of directors, will determine the amount of bonus, if any,
to be paid by the Bank to Executive for each year during the Term or any Extended Term. Executive will participate in any existing or subsequent management incentive plan of Heritage or Bank to the same extent as officers with similar
responsibilities. Executive’s bonus, if any, will reflect Executive’s contribution to the performance of the Bank during the year. 

  

	6.	Income Deferral and Benefits. 

  

	 	(a)	Subject to eligibility requirements and in accordance with and subject to any policies adopted by the Bank’s or Heritage’s Board of Directors with respect to any benefit
plans or programs, Executive will be entitled to receive benefits (including stock options) comparable to those offered to other executive officers of Heritage and its subsidiaries with position and duties comparable to those of Executive. Neither
the Bank nor Heritage through this Agreement obligates itself to make any particular benefits available to its employees or executive officers. 

  

	 	(b)	Bank agrees to provide Executive with a vehicle for Executive’s business use. 

  

	7.	Business Expenses. The Bank will reimburse Executive for ordinary and necessary expenses (including, without limitation, travel, entertainment, and similar expenses)
incurred in performing and promoting the Bank’s business. Executive will present from time to time itemized accounts of these expenses, subject to any limits of Bank policy or the rules and regulations of the Internal Revenue Service.

  

	8.	Termination. 

  

	 	(a)	Termination By Bank for Cause. If, before the end of the Term or any Extended Term, the Bank terminates Executive’s employment for Cause or Executive terminates his
employment without Good Reason, the Bank will pay Executive the salary earned and expenses reimbursable under this Agreement incurred through the date of Executive’s termination. Executive will have no right to receive compensation or other
benefits for any period after termination under this section 8(a), and Executive will be subject to the noncompetition and nonsolicitation requirements of Section 12 through the remainder of the Term or Extended Term in which termination occurs
and for the three-year period following such Term or Extended Term in which termination occurs. 

  

	 	(b)	Other Termination By Bank. If before the end of the Term or any Extended Term, (i) the Bank terminates Executive’s employment without Cause or (ii) Executive
terminates his employment for Good Reason (defined below), the Bank will pay Executive for the remainder of the Term or Extended Term in which termination occurs the salary Executive would have been entitled to under this Agreement if his employment
had not terminated. If Executive is terminated pursuant to this Section 8(b), Executive will be subject to the noncompetition and nonsolicitation requirements of Section 12 only through the remainder of the Term or Extended Term in which
termination occurs. 

  

 2 

					
		 	(c)	  	If the Executive is deemed to be a “Specified Employee” then payment of his/her benefits under Section 8(b) that is payable because Executive’s employment terminates as
set forth in the preceding paragraph (b), shall be delayed until six (6) months and one day after the date the benefit under Section 8(b) is payable, unless the Executive dies between such date and the payment date at which time all such
benefits shall then commence. Benefits otherwise payable during the six months and one day payment delay shall be paid in one lump sum without interest on or shortly after the expiration of the six months and one day period. Benefits otherwise
payable after the six months and one day delay shall be paid as originally scheduled.
			
		 	(d)	  	 (1)    Death or Disability. This Agreement terminates upon Executive’s death or Disability. The Bank or its
successor’s Board of Directors, acting in good faith, will make the final determination of whether Executive is suffering under any Disability, taking into account the requirements of Section 409A of the Internal Revenue Code and the
definition of “Disability” as set forth in Section 8(d)(2), and for purposes of making such determination, may require Executive to submit to a physical examination by a physician mutually agreed upon by Executive and the Board of
Directors. If termination occurs under this Section 8(d), Executive or his estate will be entitled to receive only the compensation and benefits earned and expenses reimbursable through the date of such termination.

			
		 		  	 (2)    Definition of Disability. “Disability” means the Executive (i) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is,
by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a
period of not less than three (3) months under an accident and health plan covering employees of the Bank.

			
		 	(e)	  	Termination Related to a Change in Control.
			
		 		  	 (1)    Termination by Bank. If the Bank, or its successor in interest by merger, or its transferee in the event
of a purchase and assumption transaction, for reasons other than Executive’s death, Disability, or Cause (1) terminates Executive’s employment within one year following a Change in Control (as defined below) or (2) terminates
Executive’s employment before the Change in Control but on or after the date that any party either announces or is required by law to announce any prospective Change in Control transaction and a Change in Control occurs within twelve months
after the termination, the Bank will pay Executive in a lump sum an amount equal to 36 months of Executive’s Base Salary for the calendar year in which Executive’s employment is terminated (the “Change in Control
Payment”).

			
		 		  	 (2)    Termination by Executive. If Executive terminates Executive’s employment, with or without Good
Reason, within one year following a Change in Control, the Bank will pay Executive the Change in Control Payment.

			
		 		  	 (3)    If the Executive is determined to be a “Specified Employee” then payment of his benefits under
Section 8(e) that are triggered by a termination of Employment occurring after a Change in Control shall be delayed until six (6) months and one day after the date the benefit is otherwise payable, unless the Executive dies between such
date and the payment date at which time all such benefits shall be paid. Benefits otherwise payable during the six months and one day payment delay shall be paid in one lump sum without interest on or shortly after the expiration of the six months
and one day period. Benefits otherwise payable after the six months and one day delay shall be paid as originally scheduled.

  

 3 

	 	(f)	Limitations on Payments Related to Change in Control. Notwithstanding any other provision of this Agreement: 

  

	 	(1)	the Change in Control Payment will be less than the amount that would cause it to be a “parachute payment” within the meaning of Section 280G(b)(2)(A) of the Internal
Revenue Code of 1986, as amended (the “Internal Revenue Code”); 

  

	 	(2)	the Change in Control Payment will be reduced by any salary that Executive receives from the Bank or its successor after the Change in Control; and 

  

	 	(3)	Executive’s right to receive the Change in Control Payment terminates (i) immediately, if before the Change in Control transaction closes, Executive terminates his
employment without Good Reason or the Bank terminates Executive’s employment for Cause, or (ii) one year after a Change in Control occurs. 

  

	 	(g)	Definition of “Change in Control”. “Change in Control” means a change in the ownership of Heritage Financial Corporation (“Heritage”) or Central
Valley Bank(“the Bank”), a change in the effective control of Heritage or the Bank or a change in the ownership of a substantial portion of the assets of Heritage or the Bank, in each case as provided under Section 409A of the
Internal Revenue Code of 1986, as amended, and the regulations thereunder. 

  

	 	(h)	Return of Bank Property. If and when Executive ceases for any reason to be employed by Bank, Executive must return to the Bank all keys, pass cards, identification cards and
any other property of the Bank or Heritage. At the same time, Executive also must return to the Bank all originals and copies (whether in hard copy, electronic or other form) of any documents, drawings, notes, memoranda, designs, devices, diskettes,
tapes, manuals, and specifications which constitute proprietary information or material of the Bank or Heritage. The obligations in this paragraph include the return of documents and other materials which may be in Executive’s desk at work, in
Executive’s car or place of residence, or in any other location under Executive’s control. 

  

	9.	Definition of “Cause”. “Cause” means any one or more of the following: 

  

	 	(a)	Willful misfeasance or gross negligence in the performance of Executive’s duties; 

  

	 	(b)	Conviction of a crime in connection with his duties; 

  

	 	(c)	Conduct demonstrably and significantly harmful to the Bank, as reasonably determined by the Bank’s or Heritage’s board of directors on the advice of legal counsel of Bank
or Heritage; or 

  

	 	(d)	Permanent disability, meaning a physical or mental impairment which renders Executive incapable of substantially performing the duties required under this Agreement, and which is
expected to continue rendering Executive so incapable for the reasonably foreseeable future. 

  

	10.	Definition of “Good Reason”. “Good Reason” means only any one or more of the following: 

  

	 	(a)	Reduction, without Executive’s consent, of Executive’s salary or elimination of any compensation or benefit plan benefiting Executive, unless the reduction or elimination
is generally applicable to substantially all similarly situated Bank Executives (or Executives of a successor or controlling entity of the Bank) formerly benefited; 

  

	 	(b)	The assignment to Executive without his consent of any authority or duties materially inconsistent with Executive’s position as of the date of this Agreement; or

  

	 	(c)	A relocation or transfer of Executive’s current business office that would require Executive to commute on a regular basis more than 60 miles each way from his current business
office at the Bank on the date of this Agreement, unless Executive consents to the relocation or transfer. 

  

	11.	Definition of “Specified Employee”. The term “Specified Employee” is a key employee (as defined in IRC Section 416(i) without regard to
paragraph (5) thereof) of a corporation, any stock in which is publicly traded on an established securities market or otherwise, and as is further defined in Proposed Regulations 1.409A-1(i)(1) or any other regulation finally adopted with
respect to IRC Section 416(i). 

  

 4 

	12.	Confidentiality. Executive will not, after signing this Agreement, including during and after its Term, use for his own purposes or disclose to any other person or
entity and confidential information concerning the Bank or Heritage or their business operations or customers, unless (1) the Bank or Heritage consents to the use or disclosure of their respective confidential information, (2) the use or
disclosure is consistent with Executive’s duties under this Agreement, or (3) disclosure is required by law or court order. 

  

	13.	Noncompetition. 

  

	 	(a)	Participation in a Competition Business. During the Term or any Extended Term and for three years after expiration of Term or any Extended Term (such three years being the
“Post-Term Period”) (regardless of whether Executive’s employment ends at the end of the Term or any Extended Term or at some other point after the end of the Term or any Extended Term), Executive will not become involved with a
Competing Business or serve, directly or indirectly, a Competing Business in any manner, including, without limitation, as a shareholder, member, partner, director, officer, manager, investor, organizer, “founder,” employee, consultant, or
agent; provided, however, that Executive may acquire and own an interest not to exceed 2% of the total equity interest in any publicly held entity whose equity securities are listed on a national securities exchange (even if such
entity is a Competing Business). Executive’s noncompetition obligations for the Post-Term Period will not apply if (1) Executive’s employment during the Term or any Extended Term is terminated without Cause, (2) Executive
terminates his employment during the Term or any Extended Term for Good Reason, or (3) the Bank or its successor declines to employ Executive after expiration of the Term or any Extended Term. 

  

	 	(b)	No Solicitation. During the Term or any Extended Term and the Post-Term Period (regardless of whether Executive’s employment ends at the end of the Term or any Extended
Term or at some other point after the end of the Term or any Extended Term) Executive will not directly or indirectly solicit or attempt to solicit (1) any employees located in Yakima County in Washington State (the “County”) of the
Bank, Heritage, or any of Heritage’s Subsidiaries, to leave their employment or (2) and customers located in Yakima County of the Bank, Heritage, or any of Heritage’s Subsidiaries to remove their business from the Bank, Heritage, or
any of Heritage’s Subsidiaries, or to participate in any manner in a Competing Business. Solicitation prohibited under this Section includes solicitation by any means, including, without limitation, meetings, letters or other mailings,
electronic communications of any kind, and internet communications. Executive’s nonsolicitation obligations for the Post-Term Period will not apply if (1) Executive’s employment during the Term or any Extended Term is terminated
without Cause, (2) Executive terminates his employment during the Term or any Extended Term for Good Reason, or (3) the Bank or its successor declines to employ Executive after expiration of the Term or any Extended Term.

  

	 	(c)	Employment Outside the County. Nothing in this Agreement prevents Executive from accepting employment after the end of the Term or any Extended Term outside the County from a
Competing Business, as long as Executive will not (a) act as an employee or other representative or agent of the Competing Business within the County (b) have any responsibilities for the Competing Business’ operations within the
County. 

  

	 	(d)	Competing Business. “Competing Business” means any financial institution or trust company that competes with, or will compete in the County with, Heritage, the
Bank, or any of Heritage’s Subsidiaries . The term “Competing Business” includes, without limitation, any start-up or other financial institution or trust company in formation. 

  

	14.	Enforcement. 

  

	 	(a)	The Bank and Executive stipulate that, in light of all of the facts and circumstances of the relationships between Executive and the Bank, the agreements referred to in Sections 11
and 12 (including without limitation their scope, duration and geographic extent) are fair and reasonably necessary for the protection of the Bank’s and Heritage’s confidential information, goodwill and other protectable interests. If a
court of competent jurisdiction should decline to enforce any of those covenants and agreements, Executive and the Bank request the court to reform these provisions to restrict Executive’s use of confidential information and Executive’s
ability to compete with the Bank and Heritage to the maximum extent, in time, scope of activities, and geography, the court finds enforceable. 

  

 5 

	 	(b)	Executive acknowledges that the Bank and Heritage will suffer immediate and irreparable harm that will not be compensable by damages alone, if Executive repudiates or breaches any
of the provisions of Sections 11 or 12 or threatens or attempts to do so. For this reason, under these circumstances, the Bank and Heritage, in addition to and without limitation of any other rights, remedies or damages available to it at law or in
equity, will be entitled to obtain temporary, preliminary, and permanent injunctions in order to prevent or restrain the breach, and neither the Bank nor Heritage will be required to post a bond as a condition for the granting of this relief.

  

	15.	Adequate Consideration. Executive specifically acknowledges the receipt of adequate consideration for the covenants contained in Sections 11 and 12 and that the Bank
is entitled to require him to comply with these Sections. These Sections will survive termination of this Agreement. Executive represents that if his employment is terminated, whether voluntarily or involuntarily, Executive has experience and
capabilities sufficient to enable Executive to obtain employment in areas which do not violate this Agreement and the Bank’s enforcement of a remedy by way of injunction will not prevent Executive from earning a livelihood.

  

	16.	Arbitration. 

  

	 	(a)	Arbitration. At either party’s request, the parties must submit any dispute, controversy or claim arising out of or in connection with, or relating to, this Agreement or
any breach or alleged breach of this Agreement, to arbitration under the American Arbitration Association’s rules then in effect (or under any other form of arbitration mutually acceptable to the parties). A single arbitrator agreed on by the
parties will conduct the arbitration. If the parties cannot agree on a single arbitrator, each party must select one arbitrator and those two arbitrators will select a third arbitrator. This third arbitrator will hear the dispute. The
arbitrator’s decision is final (except as otherwise specifically provided by law) and binds the parties, and either party may request any court having jurisdiction to enter a judgment and to enforce the arbitrator’s decision. The
arbitrator will provide the parties with a written decision naming the substantially prevailing party in the action. This prevailing party is entitled to reimbursement from the other party for its costs and expenses, including reasonable
attorney’s fees. 

  

	 	(b)	Governing Law. All proceedings will be held at a place designated by the arbitrator in Thurston County, Washington. The arbitrator, in rendering a decision as to any state
law claims, will apply Washington law. 

  

	 	(c)	Exception to Arbitration. Notwithstanding the above, if Executive violates Sections 11 or 12, the Bank will have the right to initiate the court proceedings described in
Section 13(b), in lieu of an arbitration proceeding under this Section 15. The Bank may initiate these proceeding wherever appropriate within Washington State; but Executive will consent to venue and jurisdiction in Thurston County,
Washington. 

  

	17.	Miscellaneous Provisions. 

  

	 	(a)	Defined Terms. Capitalized terms used as defined terms, but not defined in this Agreement, will have the meanings assigned to those terms in the Plan.

  

	 	(b)	Entire Agreement. This Agreement constitutes the entire understanding between the parties concerning its subject matter and supersedes all prior agreements. Accordingly,
Executive specifically waives the terms of and all of his rights under all employment, change-in-control and salary continuation agreements, whether written or oral, he has entered into with the Bank or any of its Subsidiaries or affiliates.

  

	 	(c)	No Right to Continued Employment. Nothing in this Agreement, express or implied, is intended to confer upon Executive the right to continued employment with the Bank after
the Initial Term. 

  

	 	(d)	Binding Effect. This Agreement will bind and inure to the benefit of the Bank’s, Heritage’s, and Executive’s heirs, legal representatives, successors and
assigns. 

  

	 	(e)	Litigation Expenses. If either party successfully seeks to enforce any provision of this Agreement or to collect any amount claimed to be due under it, this party will be
entitled to reimbursement from the other party for any and all of its out-of-pocket expenses and costs including, without limitation, reasonable attorneys’ fees and costs incurred in connection with the enforcement or collection.

  

 6 

	 	(f)	Waiver. Any waiver by a party of its rights under this Agreement must be written and signed by the party waiving its rights. A party’s waiver of the other party’s
breach of any provision of this Agreement will not operate as a waiver of any other breach by the breaching party. 

  

	 	(g)	Counsel Review. Executive acknowledges that he has had the opportunity to consult with independent counsel with respect to the negotiation, preparation, and execution of this
Agreement. 

  

	 	(h)	Assignment. The services to be rendered by executive under this Agreement are unique and personal. Accordingly, Executive may not assign any of his rights or duties under
this Agreement. 

  

	 	(i)	Amendment. This Agreement may not be modified or amended except by a written instrument signed by both parties with the prior written consent of Heritage.

  

	 	(j)	Severability. The provisions of this Agreement are severable. The invalidity of any provision will not affect the validity of other provisions of this Agreement.

  

	 	(k)	Governing Law and Venue. This Agreement will be governed by and construed in accordance with Washington law, except to the extent that certain matters may be governed by
federal law. Except as otherwise provided in Section 15(c), the parties must bring any legal proceeding arising out of this Agreement in Thurston County, Washington, and the parties will submit to jurisdiction in that county.

  

	 	(l)	Counterparts. This Agreement may be executed in one or more facsimile counterparts, each of which will be deemed an original, but all of which taken together will constitute
one and the same document. 

  

	 	(m)	Notwithstanding any other provision of this Agreement, it is intended that any payment or benefit which is provided pursuant to or in connection with this Agreement shall be
provided and paid in a manner, and at such time and in such form, as complies with the applicable requirements of Section 409A of the Code to avoid the unfavorable tax consequences provided therein for non-compliance. Any provision in this
Agreement that is determined to violate the requirements of Section 409A shall be void and without effect. To the extent permitted under Section 409A, the parties shall reform the provision, provided such reformation shall not subject the
Executive to additional tax or interest and Executive shall not be required to incur any additional compensation as a result of the reformation. In addition, any provision that is required to appear in this Agreement that is not expressly set forth
shall be deemed to be set forth herein, and this Agreement shall be administered in all respects as if such provision were expressly set forth. References in this Agreement to Section 409A of the Internal Revenue Code include rules,
regulations, and guidance of general application issued by the Department of the Treasury under Internal Revenue Code Section 409A. 

  

					
	Signed: March 2, 2007	 	CENTRAL VALLEY BANK, N.A.
			
		 	By:	 	 /s/ Brian L. Vance

		 	Printed Name:	 	Brian L. Vance
		 	Title:	 	CEO
		
		 	D. MICHAEL BROADHEAD, individually
		
		 	 /s/ D. Michael Broadhead

		 	D. Michael Broadhead

  

 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]