Document:

Exhibit 10.1

 

SECOND AMENDMENT TO CREDIT AGREEMENT AND CONSENT

 

This Second Amendment to Credit Agreement and Consent (herein, the “Amendment”) is entered into as of January 14, 2015, among Willdan Group, Inc., a Delaware corporation (the “Borrower”), the direct and indirect Subsidiaries of the Borrower from time to time party to the hereinafter defined Credit Agreement (the “Guarantors”), and BMO Harris Bank N.A. (the “Bank”).

 

PRELIMINARY STATEMENTS

 

A.               The Borrower, the Guarantors and the Bank entered into a certain Credit Agreement, dated as of March 24, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).  All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

 

B.             The Borrower has requested that the Bank consent to certain Acquisitions as described herein and make certain other amendments to the Credit Agreement, and the Bank is willing to do so under the terms and conditions set forth in this Amendment.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1.                                             AMENDMENTS.

 

Subject to the satisfaction of the conditions precedent set forth in Section 3 below, effective as of the Second Amendment Effective Date, the Credit Agreement shall be and hereby is amended as follows:

 

1.1.                            Section 1.1 of the Credit Agreement shall be amended by amending and restating the defined term below in its entirety as follows:

 

“Applicable Margin” means, with respect to Loans, Reimbursement Obligations, Letter of Credit Fees, and the commitment fees payable under Section 3.1(a), until the first Pricing Date, the rates per annum shown opposite Level II below, and thereafter from one Pricing Date to the next the Applicable Margin means the rates per annum determined in accordance with the following schedule:

 

 

	
LEVEL
    	
 
    	
TOTAL
   LEVERAGE
   RATIO FOR SUCH
   PRICING DATE
    	
 
    	
APPLICABLE
   MARGIN FOR BASE
   RATE LOANS
   UNDER REVOLVING
   FACILITY AND
   REIMBURSEMENT
   OBLIGATIONS
   SHALL BE:
    	
 
    	
APPLICABLE
   MARGIN FOR
   BASE RATE
   LOANS UNDER
   DELAYED
   DRAW TERM
   LOAN FACILITY
   SHALL BE:
    	
 
    	
APPLICABLE
   MARGIN FOR
   EURODOLLAR
   LOANS UNDER
   REVOLVING
   FACILITY AND
   FINANCIAL
    LETTER OF
   CREDIT FEES
    SHALL BE:
    	
 
    	
APPLICABLE
   MARGIN FOR
   EURODOLLAR
   LOANS UNDER
   DELAYED
   DRAW TERM
   LOAN FACILITY
   SHALL BE:
    	
 
    	
APPLICABLE
   MARGIN FOR
   PERFORMANCE
   LETTER OF
   CREDIT FEES
   SHALL BE:
    	
 
    	
APPLICABLE
   MARGIN FOR
   COMMITMENT
   FEE SHALL
   BE:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
I
    	
 
    	
Less than 0.75 to 1.0
    	
 
    	
0.75
    	
%
    	
1.25
    	
%
    	
1.75
    	
%
    	
2.25
    	
%
    	
1.31
    	
%
    	
0.20
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
II
    	
 
    	
Less than 1.50 to 1.0,   but greater than or equal to 0.75 to 1.0
    	
 
    	
1.00
    	
%
    	
1.50
    	
%
    	
2.00
    	
%
    	
2.50
    	
%
    	
1.50
    	
%
    	
0.25
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
III
    	
 
    	
Greater than or equal to   1.50 to 1.0
    	
 
    	
1.25
    	
%
    	
1.75
    	
%
    	
2.25
    	
%
    	
2.75
    	
%
    	
1.69
    	
%
    	
0.30
    	
%
    

 

For purposes hereof, the term “Pricing Date” means, for any Fiscal Quarter ending on or after the Second Amendment Effective Date, the date on which the Bank is in receipt of the Borrower’s most recent financial statements (and, in the case of the Fiscal Year-end financial statements, audit report) for the Fiscal Quarter then ended, pursuant to Section 8.5.  The Applicable Margin shall be established based on the Total Leverage Ratio for the most recently completed Fiscal Quarter and the Applicable Margin established on a Pricing Date shall remain in effect until the next Pricing Date.  If the Borrower has not delivered its financial statements by the date such financial statements (and, in the case of the Fiscal Year-end financial statements, audit report) are required to be delivered under Section 8.5, until such financial statements and audit report are delivered, the Applicable Margin shall be the highest Applicable Margin (i.e., Level III shall apply).  If the Borrower subsequently delivers such financial statements before the next Pricing Date, the Applicable Margin shall be determined on the date of delivery of such financial statements and remain in effect until the next Pricing Date.  In all other circumstances, the Applicable Margin shall be in effect from the Pricing Date that occurs immediately after the end of the Fiscal Quarter covered by such financial statements until the next Pricing Date.  Each determination of the Applicable Margin made by the Bank in accordance with the foregoing shall be conclusive and binding on the Borrower if reasonably determined.

 

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1.2.                            Section 1.1 of the Credit Agreement shall be amended by inserting new defined terms therein in their appropriate alphabetical order, each such defined term to read in its entirety as follows:

 

“Bonding Agreement” means, collectively, all contractual arrangements entered into by the Borrower or any of its Subsidiaries with providers of bid, performance or payment bonds.

 

“Bonds” means, collectively, all bonds issued by any Surety pursuant to a Bonding Agreement.

 

“Earn Out Obligations” means any cash earn out obligations, performance payments or similar obligations to a seller in respect of any Permitted Acquisition as partial consideration in connection with such Permitted Acquisition,  but excluding any working capital adjustments or payments for services or licenses provided by such seller.

 

“Excess Cash Flow” means, with respect to any period, the amount (if any) by which (a) EBITDA (but determined for such purposes without giving effect to any extraordinary gains or losses) of the Borrower and its Subsidiaries during such period exceeds (b) the sum of (i) Interest Expense of the Borrower and its Subsidiaries payable in cash during such period, plus (ii) federal, state and local income taxes of the Borrower and its Subsidiaries payable in cash during such period, plus (iii) the aggregate amount of payments required to be made, and actually made, by the Borrower and its Subsidiaries during such period in respect of all principal on all Indebtedness (whether at maturity, as a result of mandatory sinking fund redemption, mandatory prepayment, acceleration or otherwise, but excluding payments made under the Revolving Credit and excluding prepayments of the Term Loans made under Section 2.8), plus (iv) the aggregate amount of Unfinanced Capital Expenditures made by the Borrower and its Subsidiaries during such period, plus (v) any increases in non-debt, non-cash working capital of the Borrower and its Subsidiaries for such period, plus (vi) the aggregate amount of payments required to be made, and actually made, by the Borrower and its Subsidiaries during such period in respect of all Earn Out Obligations to the extent permitted by this Agreement and not financed with proceeds of Indebtedness, minus (vii) any decreases in non-debt, non-cash working capital of the Borrower and its Subsidiaries for such period.

 

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“Second Amendment Date Acquisitions” has the meaning set forth in that certain Second Amendment to Credit Agreement and Consent dated as of the Second Amendment Effective Date among the Borrower, the Bank and the Guarantors.

 

“Second Amendment Effective Date” means January 14, 2015.

 

“Seller Note” means any promissory note or notes issued by a Loan Party to the seller in respect of any Permitted Acquisition as partial consideration in connection with such Permitted Acquisition.

 

“Surety” means, collectively, any surety party to a Bonding Agreement.

 

1.3.                            The defined term “Permitted Acquisition” appearing in Section 1.1 of the Credit Agreement shall be amended by amending and restating clause (d) appearing therein to read as follows:

 

(d)                                 the Total Consideration for the Acquired Business shall not exceed $750,000 and, when taken together with the Total Consideration for all Acquired Businesses during the term of this Agreement, shall not exceed $1,500,000 in the aggregate;

 

1.4.                            Section 2.1 of the Credit Agreement shall be amended by deleting the amount “$2,500,000” appearing therein and replacing it with the amount “$3,000,000” in lieu thereof.

 

1.5.                            Section 2.8 of the Credit Agreement shall be amended by amending and restating clause (b)(vii) appearing therein and inserting a new clause (b)(viii), each to read in its entirety as follows:

 

(vii)                           Within 30 days after receipt of the Borrower’s year-end audited financial statements, and in any event within 120 days after the end of each fiscal year of the Borrower (commencing with the fiscal year of the Borrower ending December 31, 2015), the Borrower shall prepay the Obligations by an amount equal to 50% of Excess Cash Flow for the most recently completed fiscal year of the Borrower; provided, that if the Total Leverage Ratio is less than 1.25 to 1.00, as demonstrated in the written certificate of a Financial Officer delivered in connection with such financial statements as required by Section 8.5(j), then the Borrower shall not be required to comply with this Section 2.8(b)(vii) for such fiscal year then ended.  The amount of each such prepayment shall be applied to the outstanding Delayed Draw Term Loan until paid in full.

 

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(viii)                        Unless the Borrower otherwise directs, prepayments of Loans under this Section 2.8(b) shall be applied first to Borrowings of Base Rate Loans until payment in full thereof with any balance applied to Borrowings of Eurodollar Loans in the order in which their Interest Periods expire.  Each prepayment of Loans under this Section 2.8(b) shall be made by the payment of the principal amount to be prepaid and, in the case of the Delayed Draw Term Loan or any Eurodollar Loans, accrued interest thereon to the date of prepayment together with any amounts due the Bank under Section 4.5.  Each prefunding of L/C Obligations shall be made in accordance with Section 9.4.

 

1.6.                            Section 2.8 of the Credit Agreement shall be amended by amending and restating clause (c) appearing therein to read in its entirety as follows:

 

(c)                                  Any amount of Revolving Loans paid or prepaid before the Revolving Credit Termination Date may, subject to the terms and conditions of this Agreement, be borrowed, repaid and borrowed again.  No amount of the Delayed Draw Term Loan paid or prepaid may be reborrowed, and, in the case of any partial prepayment, such prepayment shall be applied to the remaining payments on the relevant Loans in the inverse order of maturity.

 

1.7.                            Section 2.12 of the Credit Agreement shall be amended by deleting the amount “$5,000,000” appearing therein and replacing it with the amount “$10,000,000” in lieu thereof.

 

1.8.                            Section 6.4 of the Credit Agreement shall be amended by amending and restating the first sentence thereof to read in its entirety as follows:

 

The Borrower shall use the proceeds of the Delayed Draw Term Loan to finance Permitted Acquisitions and to pay transaction expenses related to Permitted Acquisitions; and the Borrower shall use the proceeds of the Revolving Facility to refinance existing Indebtedness outstanding on the Closing Date, pay the transaction expenses related to the Loan Documents, to finance Permitted Acquisitions, to finance Capital Expenditures and for its general working capital purposes and for such other legal and proper purposes as are consistent with all applicable laws.

 

1.9.                            Section 6 of the Credit Agreement shall be amended by inserting a new Section 6.25 therein to read in its entirety as follows:

 

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Section 6.25.                         Bonding Capacity.  The Borrower and its Subsidiaries have available bonding capacity under one or more Bonding Agreements in an amount sufficient to operate their respective businesses in the ordinary course.  The Borrower and its Subsidiaries are in compliance in all material respects with all terms and conditions set forth in each Bonding Agreement and no default has occurred thereunder.

 

1.10.                             Section 8.5 of the Credit Agreement shall be amended by amending and restating clauses (i) and (l) thereof to read in their entirety as follows:

 

(i)                                     promptly after knowledge thereof shall have come to the attention of any Responsible Officer of any Loan Party, written notice of (i) any threatened or pending litigation or governmental or arbitration proceeding or labor controversy against any Loan Party or any Subsidiary of a Loan Party or any of their Property which, if adversely determined, could reasonably be expected to have a Material Adverse Effect, (ii) the occurrence of any Material Adverse Effect, (iii) the occurrence of any Default, (iv) any material amendment or other modification to any Bonding Agreement (together with a copy of such amendment or modification) and copies of any notices received under any Bonding Agreement, (v) any new Bonding Agreement entered into after the Closing Date (together with a copy of such agreement), or (vi) any event or change in circumstance that occurs regarding the bonding capacity or bonding requirements of either Borrower or any Subsidiary, including without limitation notice of (A) each reduction in the aggregate bonding capacity of the Borrower and its Subsidiaries of 20% or more of the aggregate bonding capacity of the Borrower and its Subsidiaries as in effect on the Second Amendment Effective Date, individually or in the aggregate, and (B) any failure or inability of the Borrower or a Subsidiary to obtain bonding for any new project that is committed to by the Borrower or a Subsidiary or the refusal of any bonding company or any other Surety to provide bonding for any such project;

 

(l)                                     promptly, from time to time, such other information regarding the operations, business affairs and financial condition of any Loan Party or any Subsidiary of a Loan Party, or compliance with the terms of any Loan Document, including but not limited to an updated schedule of all Bonds outstanding, as the Bank may reasonably request.

 

1.11.                             Section 8.7 of the Credit Agreement shall be amended by deleting the word “and” at the end of clause (j), deleting the period at the end of clause (k), and adding new clauses (l), (m) and (n) as follows:

 

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(l)                                     indebtedness arising from Seller Notes; provided that (x) all Indebtedness arising from any such Seller Notes shall be unsecured and subordinated to the Secured Obligations pursuant to subordination provisions or subordination agreements satisfactory to the Bank, and (y) the aggregate principal amount of all Indebtedness outstanding from any such Seller Notes shall not at any time exceed $4,250,000;

 

(m)                             indebtedness arising from Earn Out Obligations; provided that (x) all Indebtedness arising from any such Earn-Out Obligations shall be unsecured to the Secured Obligations, and (y) the aggregate principal amount of all Indebtedness outstanding from any such Earn Out Obligations shall not at any time exceed $7,900,000; and

 

(n)                                 guarantee obligations of the Borrower with respect to indebtedness arising from Seller Notes permitted by Section 8.7(l); provided that such guarantee shall be unsecured and subordinated to the Secured Obligations pursuant to subordination provisions or subordination agreements satisfactory to the Bank.

 

1.12.                             Section 8.8 of the Credit Agreement shall be amended by deleting the word “and” at the end of clause (i), deleting the period at the end of clause (j) and replacing it with the phrase “; and”, and adding a new clause (k) as follows:

 

(k)                                 Liens on equipment of any Loan Party or any Subsidiary of a Loan Party created solely for the purpose of securing indebtedness pursuant to a Bonding Agreement; provided that no such Lien shall extend to or cover other Property of such Loan Party or such Subsidiary other than the respective Property so connected to the applicable Bond (including assets used in connection with the related project or proceeds of the related project).

 

1.13.                             Section 8.23(a) and (b) of the Credit Agreement shall be amended and restated in its entirety to read as follows:

 

(a)                                 Total Leverage Ratio.  As of the last day of each Fiscal Quarter, the Borrower shall not permit the Total Leverage Ratio to be greater than (i) 2.25 to 1.00 as of the last day of each of the first four Fiscal Quarters ending after the date of the consummation of the Second Amendment Date Acquisitions, and (ii) 2.00 to 1.00 as of the last day of each Fiscal Quarter ending thereafter.

 

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(b)                                 Tangible Net Worth.  The Borrower shall at all times maintain Tangible Net Worth of the Borrower and its Subsidiaries determined on a consolidated basis in an amount not less than (i) the greater of (A) $5,000,000 and (B) 85% of the Tangible Net Worth of the Borrower and its Subsidiaries as of March 31, 2015 plus (ii) for the first Fiscal Quarter of 2015, 50% of Net Income, and for each Fiscal Quarter thereafter, 50% of Net Income if such Net Income is a positive amount (i.e., there shall be no reduction to the minimum amount of Tangible Net Worth required to be maintained hereunder for any Fiscal Quarter in which Net Income is less than zero), plus or minus, as applicable, (iii) 80% of any adjustments to Tangible Net Worth of the Borrower and its Subsidiaries arising as a result of the consummation of the Second Amendment Date Acquisitions (such adjustments to be subject to the review and approval of the Bank).

 

1.14.                             Section 8.24 of the Credit Agreement shall be amended by deleting the word “and” at the end of clause (a), deleting the period at the end of clause (b) and replacing it with the phrase “; and”, and adding a new clause (c) as follows:

 

(c)                                  modify any term of any Bonding Agreement such that the Property subject to any Lien in favor of any Surety attaches to Property that is not in direct connection with the applicable Bond.

 

1.15.                             Article 8 of the Credit Agreement shall be amended by inserting a new Section 8.26 therein to read in its entirety as follows:

 

Section 8.26.                         Bonding Capacity.  The Borrower and its Subsidiaries shall (i) have available bonding capacity under one or more Bonding Agreements in an amount sufficient to operate their respective businesses in the ordinary course, and (ii) be in compliance in all material respects with all terms and conditions set forth in each Bonding Agreement and shall not permit a default to occur thereunder, as set forth in, or otherwise permitted by, Section 6.25.

 

1.16.                             Section 9.1 of the Credit Agreement shall be amended by deleting the word “or” at the end of clause (j), deleting the period at the end of clause (k) and replacing it with the phrase “; or”, and adding a new clause (l) as follows:

 

(l)                                     Bonding Agreements:

 

(i) any Surety for the Borrower or any of its Subsidiaries for any reason ceases to issue bonds, undertakings or instruments of guaranty and the amount of such reduction in bonding capacity

 

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exceeds 20% or more of the aggregate bonding capacity of the Borrower and its Subsidiaries as in effect on the Second Amendment Effective Date and the Borrower and its Subsidiaries shall fail to cause another Person reasonably acceptable to the Bank (provided that any such Person shall be deemed to be acceptable if its bonds, undertakings or instruments of guaranty are accepted by contract providers for the Borrower and its Subsidiaries) to issue bonds, undertakings or instruments of guaranty within 30 days of the date that such original Surety ceased to issue bonds, undertakings or instruments of guaranty; or

 

(ii) (A) at any time, any Surety for the Borrower or any of its Subsidiaries shall violate any term of any agreement with the Bank to which it is a party, which violation would adversely affect the rights or interests of the Bank under the Loan Documents and such violation shall continue for a period of five (5) Business Days after the Bank’s delivery of written notice thereof to such Surety and the Borrower, (B) any Surety exercises any rights or remedies as a secured party with respect to any Collateral in excess of $100,000, or (C) any Surety takes possession of any Collateral in excess of $100,000 and such action continues for a period of ten (10) Business Days after the earlier of (A) the Bank’s delivery of written notice thereof to the Borrower and (B) a Responsible Officer of the Borrower having obtained knowledge thereof; or

 

(iii) the Borrower or any of its Subsidiaries defaults in the payment when due of any amount due under any Bonding Agreement or breaches or defaults with respect to any other term of any Bonding Agreement, if the effect of such failure to pay, default or breach is to cause the related Surety to take possession of the work under any of the bonded contracts of the Borrower or any of its Subsidiaries and value of the contract or project that has been taken over by the related Surety exceeds $100,000; or

 

(iv) the Borrower or any Subsidiary breaches or defaults with respect to any term under any of the bonded contracts of the Borrower or such Subsidiary, if the effect of such default or breach is to cause the related Surety to take possession of the work under such bonded contract and value of the contract or project that has been taken over by the related Surety exceeds $100,000.

 

SECTION 2.                                             CONSENT.

 

Notwithstanding any term or provision of the Credit Agreement, including, without limitation, the definition of Permitted Acquisition and Section 8.9 thereof, the Bank does hereby consent to the imminent Acquisition by Willdan Energy Solutions, a California corporation, of (i)

 

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100% of the equity interests of a certain corporation (the “Atlantic Acquisition”) and (ii) substantially all of the assets of an additional limited liability company (the “Circle Acquisition”; and together with the Atlantic Acquisition, the “Second Amendment Date Acquisitions”), and hereby waives any Default or Event of Default under, or other violation of, the Credit Agreement that will directly and solely result from use of proceeds for the Second Amendment Date Acquisitions.  The Bank affirms that the total consideration paid or payable (including all transaction costs, assumed Indebtedness and liabilities incurred, assumed or reflected on a consolidated balance sheet of the Loan Parties and their Subsidiaries after giving effect to such Acquisitions) in connection with the Second Amendment Date Acquisitions shall not be included for purposes of calculating the aggregate limits set forth in clause (d) of the definition of Permitted Acquisition.  Furthermore, the Bank affirms, without limiting the foregoing sentence, that each of the Atlantic Acquisition and the Circle Acquisition shall be deemed a “Permitted Acquisition” under the Credit Agreement.

 

This consent shall be limited specifically as written herein and shall not constitute a consent to any other transactions prohibited by the Credit Agreement.  This consent shall not be a waiver of any Default or Event of Default, except as expressly set forth herein.

 

SECTION 3.                                             CONDITIONS PRECEDENT.

 

The effectiveness of this Amendment is subject to the satisfaction of all of the following conditions precedent:

 

3.1.                            The Loan Parties and the Bank shall have executed and delivered this Amendment.

 

3.2.                            The Borrower shall have executed and delivered the replacement Delayed Draw Term Note attached as Exhibit A hereto.

 

3.3.                            The Bank shall have received a duly completed pro forma Compliance Certificate signed by a Responsible Officer of the Borrower demonstrating that after giving effect to the Second Amendment Date Acquisitions, the Total Leverage Ratio shall be no greater than 1.75 to 1.00 and the Borrower is otherwise in compliance with Sections 8.23(b) and (c) of the Credit Agreement.

 

3.4.                            The Bank shall have received copies (executed or certified, as may be appropriate) of all legal documents or proceedings taken in connection with the execution and delivery of this Amendment to the extent the Bank or its counsel may reasonably request.

 

3.5.                            Legal matters incident to the execution and delivery of this Amendment shall be satisfactory to the Bank and its counsel.

 

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SECTION 4.                                             POST-CLOSING COVENANTS.

 

On the date in which the relevant Second Amendment Date Acquisition occurs but immediately prior to such Second Amendment Date Acquisition’s effectiveness:

 

4.1.         On the date of consummation of the Atlantic Acquisition, the Bank, the sellers under the Atlantic Acquisition and the Loan Parties shall have executed and delivered subordination agreements with respect to any Seller Notes issued in connection with the Atlantic Acquisition, which subordination agreements shall be in form and substance satisfactory to the Bank.

 

4.2.         On the date of consummation of the Circle Acquisition, the Bank, the sellers under the Circle Acquisition, the Borrower and the Loan Parties (as applicable) shall have executed and delivered subordination agreements with respect to any Seller Notes issued in connection with the Circle Acquisition and the Borrower’s guarantee of such Seller Notes, which subordination agreements shall be in form and substance satisfactory to the Bank.

 

4.3.         On the date of consummation of the Atlantic Acquisition, the Bank shall have received a certificate of a Responsible Officer of each Loan Party certifying that (i) after giving effect to the Atlantic Acquisition, no Default or Event of Default shall exist, (ii) the Atlantic Acquisition satisfies clauses (a), (b), (c), (h) and (i) of the definition of Permitted Acquisition, (iii) attached thereto are true, correct and complete copies of: (A) all agreements in connection with the Atlantic Acquisition, (B) all Seller Notes outstanding as of the date of the Atlantic Acquisition, (C) any guaranty agreements that guarantee any Indebtedness under any Seller Note entered into in connection with the Atlantic Acquisition, and (D) all Bonding Agreements the Loan Parties are a party to as of the date of the Atlantic Acquisition, which Bonding Agreements shall be in form and substance satisfactory to the Bank, and (iv) attached thereto is a true, correct and complete schedule of all Bonds outstanding on the date hereof.

 

4.4.         On the date of consummation of the Circle Acquisition, the Bank shall have received a certificate of a Responsible Officer of each Loan Party certifying that (i) after giving effect to the Circle Acquisition, no Default or Event of Default shall exist, (ii) the Circle Acquisition satisfies clauses (a), (b), (c), (h) and (i) of the definition of Permitted Acquisition, (iii) attached thereto are true, correct and complete copies of: (A) all agreements in connection with the Circle Acquisition, (B) all Seller Notes outstanding as of the date of the Circle Acquisition, (C) any guaranty agreements that guarantee any Indebtedness under any Seller Note entered into in connection with the Circle Acquisition, and (D) all Bonding Agreements the Loan Parties are a party to as of the date of the Circle Acquisition, which Bonding Agreements shall be in form and substance satisfactory to the Bank, and (iv) attached thereto is a true, correct and complete schedule of all Bonds outstanding on the date hereof.

 

4.5.         On the date of consummation of the Atlantic Acquisition, the Bank shall have received with respect to the Atlantic Acquisition (the “Additional Guarantor”):

 

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(i)         UCC-1 financing statements, stock or other appropriate certificates along with undated, blank equity powers executed with respect thereto, if applicable, for all equity interests of the Additional Guarantor owned by a Loan Party, and executed counterparts of the Additional Guaranty Supplement and the Assumption and Supplement to Security Agreement (in each case in form and substance satisfactory to the Bank;

 

(ii)          any deposit account control agreements and landlord waivers, to the extent requested by the Bank to perfect its Lien on the Property of the New Guarantor;

 

(iii)          certificates showing the existence of all insurance policies required by Section 8.4 of the Credit Agreement, naming the Bank, as mortgagee/lender’s loss payee and additional insured;

 

(iv)          such certificates of resolutions or other similar action, incumbency certificates and/or other certificates of Responsible Officers of the Additional Guarantor as the Bank may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Amendment and the other Loan Documents to which the Additional Guarantor is a party;

 

(v)         such documents and certifications as the Bank may require to evidence that the Additional Guarantor is duly organized or formed, and that the Additional Guarantor is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect;

 

(vi)          tax and judgment lien search results against the Additional Guarantor, and the Property of the Additional Guarantor evidencing the absence of Liens on its assets, except for Liens permitted by Section 8.8 of the Credit Agreement;

 

(vii)          pay-off and lien release letters from secured creditors, if applicable, (other than holders of Permitted Liens) of the Additional Guarantor and containing an undertaking to cause to be delivered to the Bank UCC termination statements, mortgage releases and any other lien release instruments reasonably necessary to release Liens on the assets of the Additional Guarantor, in form and substance acceptable to the Bank; and

 

(viii)           all documentation and other information required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act; and a fully executed IRS Form W-9 (or its equivalent) for the Additional Guarantor.

 

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4.6.         On the date of consummation of the Circle Acquisition, the Bank shall have received with respect to the Circle Acquisition and the limited liability company whose assets are being sold as part of the Circle Acquisition (such entity referred to as “Circle”):

 

(i)         tax and judgment lien search results against Circle, and the Property of Circle evidencing the absence of Liens on its assets, except for Liens permitted under Section 8.8 of the Credit Agreement;

 

(ii)          pay-off and lien release letters from secured creditors (other than holders of Liens permitted under Section 8.8 of the Credit Agreement) of Circle and containing an undertaking to cause to be delivered to the Bank UCC termination statements, mortgage releases and any other lien release instruments reasonably necessary to release Liens on the assets of Circle, in form and substance acceptable to the Bank;

 

(iii)          any deposit account control agreements and landlord waivers, to the extent requested by the Bank to perfect its Lien on the Property of Circle; and

 

(iv)          a copy of all Bonding Agreements entered into or assumed in connection with the Circle Acquisition and a schedule of all Bonds outstanding that are assumed as part of the Circle Acquisition.

 

SECTION 5.                                             REPRESENTATIONS.

 

In order to induce the Bank to execute and deliver this Amendment, the Borrower hereby represents to the Bank that as of the date hereof (a) the representations and warranties set forth in Section 6 of the Credit Agreement are and shall be and remain true and correct (except that the representations contained in Section 6.5 shall be deemed to refer to the most recent financial statements of the Borrower delivered to the Bank) and (b) the Borrower is in compliance with the terms and conditions of the Credit Agreement and no Default or Event of Default has occurred and is continuing under the Credit Agreement or shall result after giving effect to this Amendment.

 

SECTION 6.                                             MISCELLANEOUS.

 

6.1.     The Borrower heretofore executed and delivered to the Bank the Security Agreement and certain other Collateral Documents. The Borrower hereby acknowledges and agrees that the Liens created and provided for by the Collateral Documents continue to secure, among other things, the Secured Obligations arising under the Credit Agreement as amended hereby; and the Collateral Documents and the rights and remedies of the Bank thereunder, the obligations of the Borrower thereunder, and the Liens created and provided for thereunder remain in full force and effect and shall not be affected, impaired or discharged hereby.  Nothing herein contained shall in any manner affect or impair the priority of the liens and security interests created and provided for by the Collateral Documents as to the indebtedness which would be secured thereby prior to giving effect to this Amendment.

 

13

 

6.2.     Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms.  Reference to this specific Amendment need not be made in the Credit Agreement, the Notes, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement as amended hereby.

 

6.3.     The Borrower agrees to pay on demand all costs and expenses of or incurred by the Bank in connection with the negotiation, preparation, execution and delivery of this Amendment, including the fees and expenses of counsel for the Bank.

 

6.4.     This Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement.  Any of the parties hereto may execute this Amendment by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original.  Delivery of a counterpart hereof by facsimile transmission or by e-mail transmission of an Adobe portable document format file (also known as a “PDF” file) shall be effective as delivery of a manually executed counterpart hereof.  This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of Illinois.

 

[SIGNATURE PAGE TO FOLLOW]

 

14

 

This Second Amendment to Credit Agreement and Consent is entered into as of January 14, 2015.

 

	
 
    	
“BORROWER”
    
	
 
    	
 
    
	
 
    	
WILLDAN   GROUP, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Thomas D. Brisbin
    
	
 
    	
 
    	
Thomas   D. Brisbin
    
	
 
    	
 
    	
President   and Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
“GUARANTORS”
    
	
 
    	
 
    
	
 
    	
ELECTROTEC   OF NY ELECTRICAL INC.
    
	
 
    	
PUBLIC   AGENCY RESOURCES
    
	
 
    	
WILLDAN   ENERGY SOLUTIONS
    
	
 
    	
WILLDAN   ENGINEERING
    
	
 
    	
WILLDAN   ENGINEERS AND CONSTRUCTORS
    
	
 
    	
WILLDAN   FINANCIAL SERVICES
    
	
 
    	
WILLDAN   HOMELAND SOLUTIONS
    
	
 
    	
WILLDAN   INFRASTRUCTURE
    
	
 
    	
WILLDAN   LIGHTING & ELECTRIC, INC.
    
	
 
    	
WILLDAN LIGHTING & ELECTRIC OF CALIFORNIA
    
	
 
    	
WILLDAN LIGHTING & ELECTRIC OF   WASHINGTON, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Thomas D. Brisbin
    
	
 
    	
 
    	
Thomas   D. Brisbin
    
	
 
    	
 
    	
Chairman   of the Board
    

 

[Signature Page to Second Amendment to Credit Agreement and Consent]

 

 

	
Accepted   and agreed to.
    	
 
    
	
 
    	
 
    
	
 
    	
BMO HARRIS   BANK N.A.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Brian Russ
    
	
 
    	
 
    	
Name
    	
Brian   Russ
    
	
 
    	
 
    	
Title
    	
Vice   President
    

 

[Signature Page to Second Amendment to Credit Agreement and Consent]

 

 

EXHIBIT A

 

DELAYED DRAW TERM NOTE

 

	
U.S. $3,000,000
    	
 
    	
January    , 2015
    

 

FOR VALUE RECEIVED, the undersigned, WILLDAN GROUP, INC., a Delaware corporation (the “Borrower”), hereby promises to pay to BMO Harris Bank N.A. (the “Lender”) or its registered assigns at the principal office of the Lender in Chicago, Illinois (or such other location as the Lender may designate to the Borrower), in immediately available funds, the principal sum of Three Million and 00/100 Dollars ($3,000,000) or, if less, the aggregate unpaid principal amount of all Delayed Draw Term Loans made or maintained by the Lender to the Borrower pursuant to the Credit Agreement, in installments in the amounts called for by Section 2.7(a) of the Credit Agreement, together with interest on the principal amount of such Delayed Draw Term Loan from time to time outstanding hereunder at the rates, and payable in the manner and on the dates, specified in the Credit Agreement.

 

This Delayed Draw Term Note (this “Note”) is the Delayed Draw Term Note referred to in the Credit Agreement dated as of March 24, 2014, by and among the Borrower, the Guarantors party thereto, and the Lender (as extended, renewed, amended or restated from time to time, the “Credit Agreement”), and this Note and the holder hereof are entitled to all the benefits and security provided for thereby or referred to therein, to which Credit Agreement reference is hereby made for a statement thereof.  All defined terms used in this Note, except terms otherwise defined herein, shall have the same meaning as in the Credit Agreement.  This Note shall be governed by and construed in accordance with the internal laws of the State of Illinois.

 

This Note is issued in substitution and replacement for and continues to evidence the indebtedness previously evidenced by, that certain Delayed Draw Term Note of the Borrower dated March 24, 2014, in the face amount of $2,500,000.

 

Voluntary prepayments may be made hereon, certain prepayments are required to be made hereon, and this Note may be declared due prior to the expressed maturity hereof, all in the events, on the terms and in the manner as provided for in the Credit Agreement.

 

[REMAINDER INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

 

 

The Borrower hereby waives demand, presentment, protest or notice of any kind hereunder.

 

 

	
 
    	
WILLDAN   GROUP, INC.
    
	
 
    	
A   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Stacy B. McLaughlin
    
	
 
    	
 
    	
Stacy   McLaughlin
    
	
 
    	
 
    	
Chief   Financial Officer
    

 

[Signature Page to Delayed Draw Term Note]EX10.1

 Exhibit 10.1 

WALGREENS BOOTS ALLIANCE, INC. 
 2013 OMNIBUS INCENTIVE
PLAN 
 RESTRICTED STOCK UNIT AWARD AGREEMENT 
 These
materials, which may include descriptions of company stock plans, prospectuses and other information and documents, and the information they contain, are provided by Walgreens Boots Alliance, Inc., not by Fidelity, and are not an offer or
solicitation by Fidelity for the purchase of any securities or financial instruments. These materials were prepared by Walgreens Boots Alliance, Inc., which is solely responsible for their contents and for compliance with legal and regulatory
requirements. Fidelity is not connected with any offering or acting as an underwriter in connection with any offering of securities or financial instruments of Walgreens Boots Alliance, Inc. Fidelity does not review, approve or endorse the contents
of these materials and is not responsible for their content. 

 WALGREENS BOOTS ALLIANCE, INC. 

2013 OMNIBUS INCENTIVE PLAN 
 RESTRICTED STOCK UNIT
AWARD AGREEMENT 
 Participant Name: 
 Participant ID: 

Grant Date: 
 Units Granted: 

Vesting: 
 Acceptance Date: 

Electronic Signature: 
 This document (referred
to below as this “Agreement”) spells out the terms and conditions of the Restricted Stock Unit Award (the “Award”) granted to you by Walgreens Boots Alliance, Inc., a Delaware corporation (the “Company”), pursuant to
the Walgreens Boots Alliance, Inc. 2013 Omnibus Incentive Plan (the “Plan”) on and as of the Grant Date designated above. Except as otherwise defined herein, capitalized terms used in this Agreement have the respective meanings set forth
in the Plan. For purposes of this Agreement, “Employer” means the entity (the Company or the Affiliate) that employs you on the applicable date. The Plan, as it may be amended from time to time, is incorporated into this Agreement by this
reference. 
 You and the Company agree as follows: 

1. Grant of Restricted Stock Units. Pursuant to the approval and direction of the Compensation Committee of the Company’s Board of
Directors (the “Committee”), the Company hereby grants you the number of Restricted Stock Units specified above (the “Restricted Stock Units”), subject to the terms and conditions of the Plan and this Agreement. 

2. Restricted Stock Unit Account and Dividend Equivalents. The Company will maintain an account (the “Account”) on its books
in your name to reflect the number of Restricted Stock Units awarded to you as well as any additional Restricted Stock Units credited as a result of Dividend Equivalents. The Account will be administered as follows: 

(a) The Account is for recordkeeping purposes only, and no assets or other amounts shall be set aside from the Company’s
general assets with respect to such Account. 
 (b) As of each record date with respect to which a cash dividend is to be
paid with respect to shares of Company common stock par value US$.01 per share (“Stock”), the Company will credit your Account with an equivalent amount of Restricted Stock Units determined by dividing the value of the cash dividend that
would have been paid on your Restricted Stock Units if they had been shares of Stock, divided by the value of Stock on such date. 

(c) If dividends are paid in the form of shares of Stock rather than cash, then your Account will be credited with one
additional Restricted Stock Unit for each share of Stock that would have been received as a dividend had your outstanding Restricted Stock Units been shares of Stock. 

(d) Additional Restricted Stock Units credited via Dividend Equivalents shall vest or be forfeited at the same time as the
Restricted Stock Units to which they relate. 

  
 1 

 3. Restricted Period. The period prior to the vesting date with respect each Restricted
Stock Unit is referred to as the “Restricted Period.” Subject to the provisions of the Plan and this Agreement, unless vested or forfeited earlier as described in Section 4, 5, 6 or 7 of this Agreement, as applicable, your Restricted
Stock Units will become vested and be settled as described in Section 8 below, as of the vesting date or dates indicated in the introduction to this Agreement, provided the performance goal in this Section 3, (“Performance Goal”)
is satisfied in the [performance period] ending [date]. The Performance Goal is attainment of [specify per Plan] [    ]% of threshold [performance metric] established as a goal for the [performance period] ending [date], as
determined under the Management Incentive Plan and certified by the Committee. If the Performance Goal is not attained as of the end of the [performance period], the Restricted Stock Units awarded hereunder shall be thereupon forfeited. 

4. Disability or Death. If during the Restricted Period you have a Termination of Service by reason of Disability or death, then the
Restricted Stock Units will become fully vested as of the date of your Termination of Service and the Vesting Date shall become the date of your Termination of Service. Any Restricted Stock Units becoming vested by reason of your Termination of
Service by reason of Disability or death shall be settled as provided in Section 8. 
 5. Retirement. If within 12 months of the
Vesting Date you have a Termination of Service by reason of Retirement, then the Vesting Date shall become the date of your Termination of Service. Any Restricted Stock Units becoming vested by reason of your Retirement shall be settled as provided
in Section 8. 
 6. Termination of Service Following a Change in Control. If during the Restricted Period there is a Change in
Control of the Company and within the one-year period thereafter you have a Termination of Service initiated by your Employer other than for Cause (as defined in Section 7), then your Restricted Stock Units shall become fully vested, and they
shall be settled in accordance with Section 9. For purposes of this Section 6, a Termination of Service initiated by your Employer shall include a Termination of Employment for Good Reason under - and pursuant to the terms and conditions
of – the Walgreens Boots Alliance, Inc. Executive Severance and Change in Control Plan, but only to the extent applicable to you as an eligible participant in such Plan. 

7. Other Termination of Service. If during the Restricted Period you have a voluntary or involuntary Termination of Service for any
reason other than as set forth in Section 4, 5 or 6 above or Section 9 below, as determined by the Committee, then you shall thereupon forfeit any Restricted Stock Units that are still in a Restricted Period on your termination date. For
purposes of this Agreement, “Cause” means any one or more of the following, as determined by the Committee in its sole discretion: 

(a) your commission of a felony or any crime of moral turpitude; 

(b) your dishonesty or material violation of standards of integrity in the course of fulfilling your employment duties to the
Company or any Affiliate; 
 (c) your material violation of a material written policy of the Company or any Affiliate
violation of which is grounds for immediate termination; 

  
 2 

 (d) your willful and deliberate failure to perform your employment duties to the
Company or any Affiliate in any material respect, after reasonable notice of such failure and an opportunity to correct it; or 

(e) your failure to comply in any material respect with the United States (“U.S.”) Foreign Corrupt Practices Act, the
U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, the U.S. Sarbanes-Oxley Act of 2002, the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and the U.S. Truth in Negotiations Act, or any rules or
regulations thereunder. 
 8. Settlement of Vested Restricted Stock Units. Subject to the requirements of Section 13 below, as
promptly as practicable after the applicable Vesting Date, whether occurring upon your Separation from Service or otherwise, but in no event later than 75 days after the Vesting Date, the Company shall transfer to you one share of Stock for each
Restricted Stock Unit becoming vested at such time, net of any applicable tax withholding requirements in accordance with Section 10 below; provided, however, that, if you are a Specified Employee at the time of Separation from Service, then to
the extent your Restricted Stock Units are deferred compensation subject to Section 409A of the Code, settlement of which is triggered by your Separation from Service (other than for death), payment shall not be made until the date which is six
months after your Separation from Service. 
 Notwithstanding the foregoing, if you are resident or employed outside of the U.S., the
Company, in its sole discretion, may provide for the settlement of the Restricted Stock Units in the form of: 
 (a) a cash
payment (in an amount equal to the Fair Market Value of the Stock that corresponds with the number of vested Restricted Stock Units) to the extent that settlement in shares of Stock (i) is prohibited under local law, (ii) would require
you, the Company or an Affiliate to obtain the approval of any governmental or regulatory body in your country of residence (or country of employment, if different), (iii) would result in adverse tax consequences for you, the Company or an
Affiliate or (iv) is administratively burdensome; or 
 (b) shares of Stock, but require you to sell such shares of
Stock immediately or within a specified period following your Termination of Service (in which case, you hereby agree that the Company shall have the authority to issue sale instructions in relation to such shares of Stock on your behalf). 

9. Settlement Following Change in Control. Notwithstanding any provision of this Agreement to the contrary, the Company may, in its
sole discretion, fulfill its obligation with respect to all or any portion of the Restricted Stock Units that become vested in accordance with Section 6 above, by: 

(a) delivery of (i) the number of shares of Stock that corresponds with the number of Restricted Stock Units that have
become vested or (ii) such other ownership interest as such shares of Stock that correspond with the vested Restricted Stock Units may be converted into by virtue of the Change in Control transaction; 

(b) payment of cash in an amount equal to the Fair Market Value of the Stock that corresponds with the number of vested
Restricted Stock Units at that time; or 
 (c) delivery of any combination of shares of Stock (or other converted ownership
interest) and cash having an aggregate Fair Market Value equal to the Fair Market Value of the Stock that corresponds with the number of Restricted Stock Units that have become vested at that time. 

  
 3 

 Settlement shall be made as soon as practical after the Restricted Stock Units become fully vested under
Section 6, but in no event later than 30 days after such date. 
 10. Responsibility for Taxes; Tax Withholding. 

(a) You acknowledge that, regardless of any action taken by the Company or your Employer, the ultimate liability for all income
tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you (“Tax-Related Items”), is and remains your responsibility and
may exceed the amount actually withheld by the Company or your Employer. You further acknowledge that the Company and/or your Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection
with any aspect of the Award, including, but not limited to, the grant, vesting or settlement of the Award, the subsequent sale of shares of Stock acquired pursuant to such settlement and the receipt of any Dividend Equivalents and/or dividends; and
(2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Award to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. Further, if you are subject to
Tax-Related Items in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, as applicable, you acknowledge that the Company and/or your Employer (or former employer, as applicable) may be
required to withhold or account for Tax-Related Items in more than one jurisdiction. 
 (b) Prior to any relevant taxable or
tax withholding event, as applicable, you agree to make adequate arrangements satisfactory to the Company and/or your Employer to satisfy all Tax-Related Items. In this regard, you authorize the Company, your Employer or its agent to satisfy the
obligations with regard to all Tax-Related Items by one or a combination of the following: (i) withholding from your wages or other cash compensation paid to you by the Company and/or your Employer; (ii) withholding from proceeds of the
sale of shares of Stock acquired upon settlement of the Award either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf pursuant to this authorization without further consent); or (iii) withholding from
the shares of Stock to be delivered upon settlement of the Award that number of shares of Stock having a Fair Market Value equal to (but not in excess of) the minimum amount required by law to be withheld. 

Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable
statutory minimum withholding rates (as determined by the Company in good faith and in its sole discretion) or other applicable withholding rates, including maximum applicable rates, in which case you will receive a refund of any over-withheld
amount in cash and will have no entitlement to the share equivalent. If the obligation for Tax-Related Items is satisfied by withholding from the shares of Stock to be delivered upon settlement of the Award, for tax purposes, you are deemed to have
been issued the full number of shares of Stock subject to the vested Award, notwithstanding that a number of the shares of Stock are held back solely for the purpose of paying the Tax-Related Items. 

  
 4 

 You agree to pay to the Company or your Employer any amount of Tax-Related Items
that the Company or your Employer may be required to withhold or account for as a result of your participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the shares of Stock (or
cash payment) or the proceeds from the sale of shares of Stock if you fail to comply with your obligations in connection with the Tax-Related Items. 

11. Nontransferability. During the Restricted Period and thereafter until Stock is transferred to you in settlement thereof, you may
not sell, transfer, pledge, assign or otherwise alienate or hypothecate the Restricted Stock Units whether voluntarily or involuntarily or by operation of law, other than by beneficiary designation effective upon your death, or by will or by the
laws of intestacy. 
 12. Rights as Shareholder. You shall have no rights as a shareholder of the Company with respect to the
Restricted Stock Units until such time as a certificate of stock for the Stock issued in settlement of such Restricted Stock Units has been issued to you or such shares of Stock have been recorded in your name in book entry form. Until that time,
you shall not have any voting rights with respect to the Restricted Stock Units. Except as provided in Section 9 above, no adjustment shall be made for dividends or distributions or other rights with respect to such shares for which the record
date is prior to the date on which you become the holder of record thereof. Anything herein to the contrary notwithstanding, if a law or any regulation of the U.S. Securities and Exchange Commission or of any other body having jurisdiction shall
require the Company or you to take any action before shares of Stock can be delivered to you hereunder, then the date of delivery of such shares may be delayed accordingly. 

13. Securities Laws. If a Registration Statement under the U.S. Securities Act of 1933, as amended, is not in effect with respect to
the shares of Stock to be delivered pursuant to this Agreement, you hereby represent that you are acquiring the shares of Stock for investment and with no present intention of selling or transferring them and that you will not sell or otherwise
transfer the shares except in compliance with all applicable securities laws and requirements of any stock exchange on which the shares of Stock may then be listed. 

14. Not a Public Offering. If you are resident outside the U.S., the grant of the Restricted Stock Units is not intended to be a public
offering of securities in your country of residence (or country of employment, if different). The Company has not submitted any registration statement, prospectus or other filings with the local securities authorities (unless otherwise required
under local law), and the grant of the Restricted Stock Units is not subject to the supervision of the local securities authorities. 
 15.
Insider Trading/Market Abuse Laws. Your country of residence may have insider trading and/or market abuse laws that may affect your ability to acquire or sell shares of Stock under the Plan during such times you are considered to have
“inside information” (as defined in the laws in your country). These laws may be the same or different from any Company insider trading policy. You acknowledge that it is your responsibility to be informed of and compliant with such
regulations, and you are advised to speak to your personal advisor on this matter. 
 16. Repatriation; Compliance with Law. If you
are resident or employed outside the U.S., as a condition of the Award, you agree to repatriate all payments attributable to the shares of Stock and/or cash acquired under the Plan in accordance with applicable foreign exchange rules and regulations
in your country of residence (and country of employment, if different). In 

  
 5 

 
addition, you agree to take any and all actions, and consent to any and all actions taken by the Company and its Affiliates, as may be required to allow the Company and its Affiliates to comply
with local laws, rules and/or regulations in your country of residence (and country of employment, if different). Finally, you agree to take any and all actions as may be required to comply with your personal obligations under local laws, rules
and/or regulations in your country of residence and country of employment, if different). 
 17. No Advice Regarding Grant. No
employee of the Company is permitted to advise you regarding your participation in the Plan or your acquisition or sale of the shares of Stock underlying the Restricted Stock Units. You are hereby advised to consult with your own personal tax, legal
and financial advisors before taking any action related to the Plan. 
 18. Change in Stock. In the event of any change in Stock, by
reason of any stock dividend, recapitalization, reorganization, split-up, merger, consolidation, exchange of shares, or of any similar change affecting Stock, the number of Restricted Stock Units subject to this Agreement shall be equitably adjusted
by the Committee. 
 19. Nature of the Award. In accepting the Award, you acknowledge, understand and agree that: 

(a) the Plan is established voluntarily by the Company, it is discretionary in nature and limited in duration, and it may be
modified, amended, suspended or terminated by the Company, in its sole discretion, at any time; 
 (b) the grant of the Award
is voluntary and occasional and does not create any contractual or other right to receive future grants of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted Stock Units have been granted in the past; 

(c) all decisions with respect to future Awards or other grants, if any, will be at the sole discretion of the Company,
including, but not limited to, the form and timing of the Award, the number of shares subject to the Award, and the vesting provisions applicable to the Award; 

(d) the Award and your participation in the Plan shall not create a right to employment or be interpreted as forming an
employment or service contract with the Company or any Affiliate and shall not interfere with the ability of the Company, your Employer or an Affiliate, as applicable, to terminate your employment or service relationship; 

(e) you are voluntarily participating in the Plan; 

(f) the Award and the shares of Stock subject to the Award are not intended to replace any pension rights or compensation; 

(g) the Award, the shares of Stock subject to the Award and the value of same, is an extraordinary item of compensation outside
the scope of your employment (and employment contract, if any) and is not part of normal or expected compensation for any purpose, including, without limitation, calculating any severance, resignation, termination, redundancy, dismissal,
end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments; 

  
 6 

 (h) the future value of the shares of Stock underlying the Award is unknown,
indeterminable and cannot be predicted with certainty; 
 (i) unless otherwise determined by the Committee in its sole
discretion, a Termination of Service shall be effective from the date on which active employment or service ends and shall not be extended by any statutory or common law notice of termination period; 

(j) no claim or entitlement to compensation or damages shall arise from forfeiture of the Award resulting from a Termination of
Service (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any), and in consideration of the grant of the
Award to which you are otherwise not entitled, you irrevocably agree never to institute any claim against the Company, your Employer or any Affiliate, waive your ability, if any, to bring any such claim, and release the Company, the Employer and all
Affiliates from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, you shall be deemed irrevocably to have agreed not to pursue such claim and agree
to execute any and all documents necessary to request dismissal or withdrawal of such claim; 
 (k) unless otherwise provided
herein, in the Plan or by the Company in its discretion, the Award and the benefits evidenced by this Agreement do not create any entitlement to have the Award or any such benefits transferred to, or assumed by, another company nor to be exchanged,
cashed out or substituted for, in connection with any corporate transaction affecting the shares of Stock of the Company; and 

(l) neither the Company nor any Affiliate shall be liable for any foreign exchange rate fluctuation between your local currency
and the U.S. dollar that may affect the value of the Award or of any amounts due to you pursuant to the settlement of the Award or the subsequent sale of any shares of Stock acquired upon settlement of the Award. 

20. Committee Authority; Recoupment. It is expressly understood that the Committee is authorized to administer, construe and make all
determinations necessary or appropriate for the administration of the Plan and this Agreement, including the enforcement of any recoupment policy, all of which shall be binding upon you and any claimant. Any inconsistency between this Agreement and
the Plan shall be resolved in favor of the Plan. 
 21. Non-Competition, Non-Solicitation and Confidentiality. As a condition to the
receipt of this Award, you must agree to the Non-Competition, Non-Solicitation and Confidentiality Agreement attached hereto as Exhibit A by executing that Agreement. Failure to execute and return the Non-Competition, Non-Solicitation and
Confidentiality Agreement within 120 days of the Grant Date shall constitute your decision to decline to accept this Award. 
 22.
Consent to Collection/Processing/Transfer of Personal Data. Pursuant to applicable personal data protection laws, the Company hereby notifies you of the following in relation to your personal data and the collection, processing and transfer
of such data in relation to the Company’s grant of the Restricted Stock Units and your participation in the Plan. The collection, processing and transfer of personal data is necessary for the Company’s administration of the Plan and your
participation in the Plan, and your denial and/or objection to 

  
 7 

 
the collection, processing and transfer of personal data may affect your participation in the Plan. As such, you voluntarily acknowledge and consent (where required under applicable law) to the
collection, use, processing and transfer of personal data as described herein: 
 (a) The Company and your Employer hold
certain personal information about you, including (but not limited to) your name, home address and telephone number, date of birth, social security number or other employee identification number, salary, nationality, job title, any shares of Stock
or directorships held in the Company, details of all entitlements to shares of Stock awarded, canceled, purchased, vested, unvested or outstanding in your favor, for the purpose of managing and administering the Plan (“Data”). The Data may
be provided by you or collected, where lawful, from the Company, its Affiliates and/or third parties, and the Company and your Employer will process the Data for the exclusive purpose of implementing, administering and managing your participation in
the Plan. The Data processing will take place through electronic and non-electronic means according to logics and procedures strictly correlated to the purposes for which Data are collected and with confidentiality and security provisions as set
forth by applicable laws and regulations in your country of residence (or country of employment, if different). Data processing operations will be performed minimizing the use of personal and identification data when such operations are unnecessary
for the processing purposes sought. Data will be accessible within the organization only by those persons requiring access for purposes of the implementation, administration and operation of the Plan and for the participation in the Plan. 

(b) The Company and your Employer will transfer Data internally as necessary for the purpose of implementation, administration
and management of your participation in the Plan, and the Company and/or your Employer may further transfer Data to any third parties assisting the Company in the implementation, administration and management of the Plan. These recipients may be
located in the European Economic Area, or elsewhere throughout the world, such as the United States. You hereby authorize (where required under applicable law) the recipients to receive, possess, use, retain and transfer the Data, in electronic or
other form, as may be required for the administration of the Plan and/or the subsequent holding of the shares of Stock on your behalf, to a broker or other third party with whom you may elect to deposit any shares of Stock acquired pursuant to the
Plan. 
 (c) You may, at any time, exercise your rights provided under applicable personal data protection laws, which may
include the right to (i) obtain confirmation as to the existence of the Data, (ii) verify the content, origin and accuracy of the Data, (iii) request the integration, update, amendment, deletion or blockage (for breach of applicable
laws) of the Data, (iv) oppose, for legal reasons, the collection, processing or transfer of the Data which is not necessary or required for the implementation, administration and/or operation of the Plan and your participation in the Plan, and
(v) withdraw your consent to the collection, processing or transfer of Data as provided hereunder (in which case, your Restricted Stock Units will become null and void). You may seek to exercise these rights by contacting your Human Resources
manager or the Company’s Human Resources Department, who may direct the matter to the applicable Company privacy official. 
 23.
Addendum to Agreement. Notwithstanding any provision of this Agreement to the contrary, the Restricted Stock Units shall be subject to any special terms and conditions for your country of residence (and country of employment, if different) as
set forth in the addendum 

  
 8 

 
to the Agreement, attached hereto as Exhibit B (the “Addendum”). Further, if you transfer your residence and/or employment to another country reflected in the Addendum, the special
terms and conditions for such country will apply to you to the extent the Company determines, in its sole discretion, that the application of such terms and conditions is necessary or advisable to comply with local laws, rules and/or regulations or
to facilitate the operation and administration of the Restricted Stock Units and the Plan (or the Company may establish alternative terms and conditions as may be necessary or advisable to accommodate your transfer). The Addendum shall constitute
part of this Agreement. 
 24. Additional Requirements. The Company reserves the right to impose other requirements on the Restricted
Stock Units, any shares of Stock acquired pursuant to the Restricted Stock Units and your participation in the Plan to the extent the Company determines, in its sole discretion, that such other requirements are necessary or advisable in order to
comply with local laws, rules and/or regulations or to facilitate the operation and administration of the Restricted Stock Units and the Plan. Such requirements may include (but are not limited to) requiring you to sign any agreements or
undertakings that may be necessary to accomplish the foregoing. 
 25. Amendment or Modification, Waiver. Except as set forth in the
Plan, no provision of this Agreement may be amended or waived unless the amendment or waiver is agreed to in writing, signed by you and by a duly authorized officer of the Company. No waiver of any condition or provision of this Agreement shall be
deemed a waiver of a similar or dissimilar condition or provision at the same time, any prior time or any subsequent time. 
 26.
Electronic Delivery. The Company may, in its sole discretion, deliver by electronic means any documents related to the Award or your future participation in the Plan. You hereby consent to receive such documents by electronic delivery and
agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company. 

27. Governing Law and Jurisdiction. This Agreement is governed by the substantive and procedural laws of the state of Illinois. You and
the Company shall submit to the exclusive jurisdiction of, and venue in, the courts in Illinois in any dispute relating to this Agreement without regard to any choice of law rules thereof which might apply the laws of any other jurisdictions. 

28. English Language. If you are resident in a country where English is not an official language, you acknowledge and agree that it is
your express intent that this Agreement, the Plan and all other documents, notices and legal proceedings entered into, given or instituted pursuant to the Award, be drawn up in English. If you have received this Agreement, the Plan or any other
documents related to the Award translated into a language other than English, and if the meaning of the translated version is different than the English version, the English version will control. 

29. Conformity with Applicable Law. If any provision of this Agreement is determined to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of any other provision of this Agreement or the validity, legality or
enforceability of such provision in any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 

  
 9 

 30. Successors. This Agreement shall be binding upon and inure to the benefit of any
successor or successors of the Company and any person or persons who shall, upon your death, acquire any rights hereunder. 
 **** 

This Agreement contains highly sensitive and confidential information. Please handle it accordingly. 

Please read the attached Exhibits A and B. Once you have read and understood this Agreement and Exhibits A and B, please click the acceptance
box to certify and confirm your agreement to be bound by the terms and conditions of this Agreement and Exhibits A and B, and to acknowledge your receipt of the Prospectus, the Plan and this Agreement and your acceptance of the terms and conditions
of the Award granted hereunder. 

  
 10 

 EXHIBIT A 

WALGREENS BOOTS ALLIANCE, INC. NON-COMPETITION, NON-SOLICITATION AND CONFIDENTIALITY AGREEMENT 

This Exhibit forms a part of the Restricted Stock Unit Agreement covering Restricted Stock Units awarded to an employee of Walgreens Boots
Alliance, Inc., on behalf of itself, its affiliates, subsidiaries, and successors (collectively referred to as “Employee” and the “Company”). 

WHEREAS, the Company develops and/or uses valuable business, technical, proprietary, customer and patient information it protects by limiting
its disclosure and by keeping it secret or confidential; 
 WHEREAS, Employee acknowledges that during the course of employment, he or she
has or will receive, contribute, or develop such confidential information; and 
 WHEREAS, the Company desires to protect from its
competitors such confidential information and also desires to protect its legitimate business interests and goodwill in maintaining its employee and customer relationships. 

NOW THEREFORE, in consideration of the Restricted Stock Unit Award issued to Employee pursuant the Agreement to which this is attached as
Exhibit A, Employee agrees to be bound by the terms of this Agreement: 
 1. Confidentiality. I understand that during the course of
my employment with the Company, I have or will have access to the Company’s Confidential Information, meaning information which is not generally ascertainable by proper means by the public, or which has limited disclosure within the Company, or
which is treated or designated as confidential; the disclosure of which could reasonably be harmful to the Company’s legitimate business interests. 

I understand that “Confidential Information” includes, but is not limited to, the following: 

 

	 	(a)	business or marketing plans, trade secrets, selling and pricing procedures and techniques, customer records, 

  

	 	(b)	customer lists, requirements, and information, 

  

	 	(c)	databases and software developed or used by the Company, financial information and projections, and other information for which the Company has assumed an obligation of confidentiality. 

I agree to only use the Company’s Confidential Information as necessary to perform my job during my employment with the Company. I agree
not to disclose any Confidential Information to anyone outside the Company without the Company’s prior written consent, unless as necessary to perform my job during my employment with the Company. I agree that these obligations apply during my
employment with the Company and at all times thereafter. 
 2. Non-Competition. I agree that during my employment with the Company
and for one year after the termination of my employment, I will not, directly or indirectly, invest in, own, operate, finance, control, or provide Competing Services to any Competing Business Line, in both cases as defined below. I understand that
the restrictions in this paragraph apply no matter whether my employment is terminated by me or the Company and no matter whether that termination is voluntary or involuntary. The above restrictions shall not apply to passive

  
 11 

 
investments of less than 5% ownership interest in any entity. I understand that the term “Competing Business Line” used in this Agreement means any business that is in competition with
any business engaged in by the Company with respect to which I provide substantial services during the last two years of my employment with the Company. 

I understand that I will be deemed to be providing “Competing Services” if the nature of such services are sufficiently similar in position scope
and geographic scope to any position held by me during the last two years of my employment with the Company, such that my engaging in such services on behalf of a Competing Business Line may pose competitive harm to the Company. 

3. Non-Solicitation. I agree that during my employment with the Company and for two years after the termination of my employment from
the Company for any reason, whether voluntary or involuntary: 
  

	 	(a)	I will not directly or indirectly, offer, provide or sell or participate in offering, providing or selling, products or services competitive with or similar to products or services offered by, developed by, designed by
or distributed by the Company to any person, company or entity which was a customer, potential customer or referral source of the Company for such products or services and with which I had direct contact or about which I learned confidential
information regarding such products or services at any time during the last two years of my employment with the Company; 

  

	 	(b)	I will not directly or indirectly solicit or participate in soliciting products or services competitive with or similar to products or services offered by, developed by, designed by or distributed by the Company to any
person, company or entity which was a customer, potential customer or referral source of the Company for such products or services and with which I had direct contact or about which I learned confidential information regarding such products or
services at any time during the last two years of my employment with the Company 

  

	 	(c)	I will not, nor will I assist any third party to, directly or indirectly (i) raid, hire, solicit, or attempt to persuade any employee of the Company or any person who was an employee of the Company during the 6
months preceding the termination of my employment with the Company, who possesses or had access to confidential information of the Company, to leave the employ of the Company; (ii) interfere with the performance by any such persons of
their duties for the Company; or (iii) communicate with any such persons for the purposes described in items (i) and (ii) in this paragraph. 

4. Non-Inducement. I will not directly or indirectly assist or encourage any person or entity in carrying out or conducting any
activity that would be prohibited by this Agreement if such activity were carried out or conducted by me. 
 5. Nondisparagement. I
agree (whether or not I am then an Employee) not to make negative comments or otherwise disparage the Company, its Affiliates, or any of their officers, directors, employees, shareholders, members, agents or products other than in the good faith
performance of my duties to the Company and its Affiliates while I am employed by the 

  
 12 

 
Company and its Affiliates and thereafter. The foregoing shall not be violated by truthful statements in response to legal process, required governmental testimony or filings, or administrative
or arbitral proceedings (including, without limitation, depositions in connection with such proceedings). 
 6. Intellectual
Property. The term “Intellectual Property” shall mean all trade secrets, ideas, inventions, designs, developments, devices, software, computer programs, methods and processes (whether or not patented or patentable, reduced to practice
or included in the Confidential Information) and all patents and patent applications related thereto, all copyrights, copyrightable works and mask works (whether or not included in the Confidential Information) and all registrations and applications
for registration related thereto, all Confidential Information, and all other proprietary rights contributed to, or conceived or created by, or reduced to practice by Employee or anyone acting on its behalf (whether alone or jointly with others) at
any time from the beginning of Employee’s employment with Walgreens Boots Alliance, Inc. to the termination of that employment plush ninety (90) days (i) relate to the business or to the actual or anticipated research or development
of Walgreens Boots Alliance, Inc.; (ii) result from any services that Employee or anyone acting on its behalf perform for Walgreens; or (iii) are created using the equipment, supplies or facilities of Walgreens Boots Alliance, Inc. or any
Confidential Information. 
  

	 	a.	Ownership. All Intellectual Property is, shall be and shall remain the exclusive property of the Company. Employee hereby assigns to the Company all right, title and interest, if any, in and to the Intellectual
Property; provided, however, that, when applicable, the Company shall own the copyrights in all copyrightable works included in the Intellectual Property pursuant to the “work-made-for-hire” doctrine (rather than by assignment), as such
term is defined in the 1976 Copyright Act. All Intellectual Property shall be owned by the Company irrespective of any copyright notices or confidentiality legends to the contrary which may be placed on such works by Employee or by others. Employee
shall ensure that all copyright notices and confidentiality legends on all work product authored by Employee or anyone acting on its behalf shall conform to the Company’s practices and shall specify the Company as the owner of the work. The
Company hereby provides notice to Employee that the obligation to assign does not apply to an invention for which no equipment, supplies, facility, or trade secret information of the Company was used and which was developed entirely on the
Employee’s own time, unless (a) the invention relates (i) to the business of the Company, or (ii) to the Company’s actual or demonstrably anticipated research or development, or (b) the invention results from any work
performed by Employee for the Company. 

  

	 	b.	Keep Records. Employee shall keep and maintain, or cause to be kept and maintained by anyone acting on its behalf, adequate and current written records of all Intellectual Property in the form of notes, sketches,
drawings, computer files, reports or other documents relating thereto. Such records shall be and shall remain the exclusive property of the Company and shall be available to the Company at all times during the term of this Agreement.

  

	 	c.	 Assistance. Employee shall supply all assistance requested in securing for Company’s benefit any patent, copyright, trademark, service
mark, license, right or other evidence of ownership of any such Intellectual Property, and will provide full information regarding any such item and execute all appropriate 

  
 13 

	 	
documentation prepared by Company in applying or otherwise registering, in Company’s name, all rights to any such item or the defense and protection of such Intellectual Property.

  

	 	d.	Prior Inventions. I have disclosed to the Company any continuing obligations to any third party with respect to Intellectual Property. I claim no rights to any inventions created prior to my employment for which
a patent application has not previously been filed, unless I have described them in detail on a schedule attached to this Agreement. 

7. Return of Company Property. I agree that I will not take any of the Company’s property or information with me when I leave the
Company’s employ, no matter what form that property or information is in and no matter how I acquired it. When my employment with the Company terminates, I will immediately return to the Company any and all Company information, documents, and
electronics. 
 8. Consideration and Acknowledgments. I acknowledge and agree that the covenants described in this Agreement are
essential terms, and the underlying Restricted Stock Unit Award would not be provided by the Company in the absence of these covenants. I further acknowledges that these covenants are supported by adequate consideration as set forth in this
Agreement, that full compliance with these covenants will not prevent me from earning a livelihood following the termination of my employment, and that these covenants do not place undue restraint on me and are not in conflict with any public
interest. I further acknowledge and agree that I fully understand these covenants, have had full and complete opportunity to discuss and resolve any ambiguities or uncertainties regarding these covenants before signing this Agreement, and have
voluntarily agreed to comply with these covenants for their stated terms. I further acknowledge and agree that these covenants are reasonable and enforceable in all respects. I agree that in the event I am offered employment with a Competing
Business at any time in the future, I shall immediately notify the Competing Business of the existence of the covenants set forth above. 

9. Enforceability; General Provisions. 
  

	 	(a)	I agree that the restrictions contained in this Agreement are reasonable and necessary to protect the Company’s legitimate business interests and that full compliance with the terms of this Agreement will not
prevent me from earning a livelihood following the termination of my employment, and that these covenants do not place undue restraint on me. 

  

	 	(b)	Because the Company’s current base of operations is in Illinois, I consent to the jurisdiction of the state and federal courts of Illinois with respect to any claim arising out of this Agreement. 

 

	 	(c)	Because the Company’s current base of operations is in Illinois, I agree that this Agreement shall be governed by the laws of Illinois without regard to its choice of law rules. 

 

	 	(d)	 In the event of a breach or a threatened breach of this Agreement, I acknowledge that the Company will face irreparable injury which may be difficult
to calculate in dollar terms and that the Company shall be entitled, in addition to all remedies otherwise available in law or in equity, to 

  
 14 

	 	
temporary restraining orders and preliminary and final injunctions enjoining such breach or threatened breach in any court of competent jurisdiction without the necessity of posting a surety
bond, as well as to obtain an equitable accounting of all profits or benefits arising out of any violation of this Agreement. 

  

	 	(e)	I agree that if a court determines that any of the provisions in this Agreement is unenforceable or unreasonable in duration, territory, or scope, then that court shall modify those provisions so they are reasonable and
enforceable, and enforce those provisions as modified. 

  

	 	(f)	If any phrase or provision of this Agreement is declared invalid or unenforceable by a court of competent jurisdiction, that phrase, clause or provision shall be deemed severed from this Agreement, and will not affect
the enforceability of any other provisions of this Agreement, which shall otherwise remain in full force and effect. 

  

	 	(g)	Notwithstanding the foregoing provisions of this Agreement, the non-competition provisions of Paragraph 2 above shall not restrict Employee from performing legal services as a licensed attorney for a Competing Business
to the extent that the attorney licensure requirements in the applicable jurisdiction do not permit Employee to agree to the otherwise applicable restrictions of Paragraph 2. 

 

	 	(h)	Waiver of any of the provisions of this Agreement by the Company in any particular instance shall not be deemed to be a waiver of any provision in any other instance and/or of the Company’s other rights at law or
under this Agreement. 

  

	 	(i)	I agree that the Company may assign this Agreement to its successors and that any such successor may stand in the Company’s shoes for purposes of enforcing this Agreement. 

 

	 	(j)	I agree to reimburse Company for all attorneys’ fees, costs, and expenses that it reasonably incurs in connection with enforcing its rights and remedies under this Agreement, but only to the extent the Company is
ultimately the prevailing party in the applicable legal proceedings. 

  

	 	(k)	If I violate this Agreement, then the restrictions set out in Paragraphs 2 - 6 shall be extended by the same period of time as the period of time during which the violation(s) occurred. 

 

	 	(l)	I fully understand my obligations in this Agreement, have had full and complete opportunity to discuss and resolve any ambiguities or uncertainties regarding these covenants before signing this Agreement, and have
voluntarily agreed to comply with these covenants for their stated terms. 

 10. Relationship of Parties. I acknowledge
that my relationship with the Company is “terminable at will” by either party and that the Company or I can terminate the relationship with or without cause and without following any specific procedures. Nothing contained in this Agreement
is intended to or shall be relied upon to alter the “terminable at will” relationship between the parties. 

  
 15 

 11. Modifications and Other Agreements. I agree that the terms of this Agreement may not
be modified except by a written agreement signed by both me and the Company. This Agreement shall not supersede any other restrictive covenants to which I may be subject under an employment contract, benefit program or otherwise, such that the
Company may enforce the terms of any and all restrictive covenants to which I am subject. 
 12. Notification. I agree that in the
event I am offered employment at any time in the future with any entity that may be considered a Competing Business Line, I shall immediately notify such Competing business of the existence and terms of this Agreement. I also understand and agree
that the Company may notify anyone later employing me of the existence and provisions of this Agreement. 

***            ***           
 ***            ***            *** 

By clicking the acceptance box for this grant agreement, I acknowledge receipt of the Restricted Stock Unit Agreement to which this Agreement
is attached as Exhibit A, and I agree to the terms and conditions expressed in this Agreement. 

  
 16 

 EXHIBIT B 

ADDENDUM TO THE 

WALGREENS BOOTS ALLIANCE, INC. 2013 OMNIBUS INCENTIVE PLAN 

RESTRICTED STOCK UNIT AWARD AGREEMENT 

In addition to the terms of the Plan and the Agreement, the Award is subject to the following additional terms and conditions to the extent
you reside and/or are employed in one of the countries addressed herein. Pursuant to Section 23 of the Agreement, if you transfer your residence and/or employment to another country reflected in this Addendum, the additional terms and
conditions for such country (if any) will apply to you to the extent the Company determines, in its sole discretion, that the application of such terms and conditions is necessary or advisable in order to comply with local laws, rules and/or
regulations or to facilitate the operation and administration of the Restricted Stock Units and the Plan (or the Company may establish alternative terms as may be necessary or advisable to accommodate your transfer). All defined terms contained in
this Addendum shall have the same meaning as set forth in the Plan and the Agreement. 
 FRANCE 

Use of English Language. You acknowledge that it is your express wish that the Agreement, as well as all documents, notices and legal proceedings
entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English. Vous reconnaissez avoir expressément exigé la rédaction en anglais de la présente Convention,
ainsi que de tous documents exécutés, avis donnés et procédures judiciaires intentées, directement ou indirectement, relatifs à, ou suite à, la présente Convention. 

MEXICO 
 1. Commercial
Relationship. You expressly recognize that your participation in the Plan and the Company’s grant of Restricted Stock Units does not constitute an employment relationship between you and the Company. You have been granted the Restricted
Stock Units as a consequence of the commercial relationship between the Company and the Affiliate in Mexico that employs you, and the Company’s Affiliate in Mexico is your sole employer. Based on the foregoing, you expressly recognize that
(a) the Plan and the benefits you may derive from your participation in the Plan does not establish any rights between you and the Company’s Affiliate in Mexico that employs you, (b) the Plan and the benefits you may derive from your
participation in the Plan are not part of the employment conditions and/or benefits provided by the Company’s Affiliate in Mexico that employs you, and (c) any modifications or amendments of the Plan by the Company, or a termination of the
Plan by the Company, shall not constitute a change or impairment of the terms and conditions of your employment with the Company’s Affiliate in Mexico that employs you. 

2. Extraordinary Item of Compensation. You expressly recognize and acknowledge that your participation in the Plan is a result of the
discretionary and unilateral decision of the Company, as well as your free and voluntary decision to participate in the Plan in accordance with the terms and conditions of the Plan, the Agreement and this Addendum. As such, you acknowledge and agree
that the Company, in its sole discretion, may amend and/or discontinue your participation in the Plan at any time and without any liability. The Award, the shares of Stock subject to the Award and the value of same is an extraordinary item of
compensation outside the scope of your employment contract, if any, and is not part of your regular or 

  
 17 

 
expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits, or any similar
payments, which are the exclusive obligations of the Company’s Affiliate in Mexico that employs you. 
 MONACO 

Use of English Language. You acknowledge that it is your express wish that the Agreement, as well as all documents, notices and legal proceedings
entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English. Vous reconnaissez avoir expressément exigé la rédaction en anglais de la présente Convention,
ainsi que de tous documents exécutés, avis donnés et procédures judiciaires intentées, directement ou indirectement, relatifs à, ou suite à, la présente Convention. 

NETHERLANDS 
 Exclusion of Claim. You acknowledge
and agree that you will have no entitlement to compensation or damages insofar as such entitlement arises or may arise from your ceasing to have rights under or to be entitled to the Restricted Stock Units, whether or not as a result of your
Termination of Service (whether such termination is in breach of contract or otherwise), or from the loss or diminution in value of the Restricted Stock Units. Upon the grant of Restricted Stock Units, you shall be deemed irrevocably to have waived
any such entitlement. 
 SPAIN 
 1.
Acknowledgement of Discretionary Nature of the Plan; No Vested Rights. This provision supplements the terms of the Agreement: 

In accepting the Award, you acknowledge that you consent to participation in the Plan and have received a copy of the Plan.

 You understand that the Company has unilaterally, gratuitously and in its sole discretion granted Restricted Stock Units
under the Plan to individuals who may be employees of the Company or its Affiliates throughout the world. The decision is a limited decision that is entered into upon the express assumption and condition that any grant will not economically or
otherwise bind the Company or any of its Affiliates on an ongoing basis. Consequently, you understand that the Restricted Stock Units are granted on the assumption and condition that the Restricted Stock Units and the shares of Stock acquired upon
settlement of the Restricted Stock Units shall not become a part of any employment contract (either with the Company or any of its Affiliates) and shall not be considered a mandatory benefit, salary for any purposes (including severance
compensation) or any other right whatsoever. In addition, you understand that this grant would not be made to you but for the assumptions and conditions referenced above; thus, you acknowledge and freely accept that should any or all of the
assumptions be mistaken or should any of the conditions not be met for any reason, the Award shall be null and void. 

Further, you understand and agree that the vesting of the Restricted Stock Units is expressly conditioned on your continued and
active rendering of service, such that upon a Termination of Service, the Restricted Stock Units may cease vesting immediately, in whole or in part, effective on the date of your Termination of Service

  
 18 

 
(unless otherwise specifically provided in Section 4, 5 or 6 of the Agreement). This will be the case, for example, even if (a) you are considered to be unfairly dismissed without good
cause; (b) you are dismissed for disciplinary or objective reasons or due to a collective dismissal; (c) you terminate service due to a change of work location, duties or any other employment or contractual condition, (d) you
terminate service due to a unilateral breach of contract by the Company or an Affiliate. Consequently, upon a Termination of Service for any of the above reasons, you may automatically lose any rights to Restricted Stock Units that were not vested
on the date of your Termination of Service, as described in the Plan and Agreement. 
 You acknowledge that you have read and
specifically accept the conditions referred to in the Agreement regarding the impact of a Termination of Service on your Award. 
 2.
Termination for Cause. “Cause” shall be defined as indicated in Section 7 of the Agreement, irrespective of whether the termination is or is not considered a fair termination (i.e., “despido procedente”) under Spanish
legislation. 
 UNITED KINGDOM 
 1.
Responsibility for Taxes; Tax Withholding. The following provision supplements Section 10 of the Agreement: 
 If
payment or withholding of the income tax due in connection with the Award is not made within ninety (90) days after the end of the U.K. tax year in which the event giving rise to the income tax liability occurred or such other period specified
in Section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003 (the “Due Date”), the amount of any uncollected income tax shall constitute a loan owed by you to your Employer, effective as of the Due Date. You agree that
the loan will bear interest at the then-current official rate of Her Majesty’s Revenue & Customs (“HMRC”), it shall be immediately due and repayable, and the Company or Employer may recover it at any time thereafter by any of
the means referred to in Section 10 of the Agreement. Notwithstanding the foregoing, if you are a director or executive officer of the Company (within the meaning of Section 13(k) of the U.S. Securities and Exchange Act of 1934, as
amended), will not be eligible for a loan to cover the income tax liability. In the event that you are a director or executive officer and the income tax is not collected from or paid by you by the Due Date, the amount of any uncollected income tax
may constitute a benefit to you on which additional income tax and national insurance contributions (“NICs”) will be payable. You will be responsible for paying and reporting any income tax due on this additional benefit directly to HMRC
under the self-assessment regime, and for reimbursing the Company or your Employer (as applicable) the value of any employee NICs due on this additional benefit. 

2. Exclusion of Claim. You acknowledge and agree that you will have no entitlement to compensation or damages insofar as such
entitlement arises or may arise from your ceasing to have rights under or to be entitled to the Restricted Stock Units, whether or not as a result of your Termination of Service (whether such termination is in breach of contract or otherwise), or
from the loss or diminution in value of the Restricted Stock Units. Upon the grant of Restricted Stock Units, you shall be deemed irrevocably to have waived any such entitlement. 

***            ***           
 ***            ***            *** 

  
 19 

 By clicking the acceptance box for this grant agreement, I acknowledge receipt of the Restricted
Stock Unit Award Agreement to which this Addendum is attached as Exhibit B, and I agree to the terms and conditions expressed in this Addendum. 

  
 20

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