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  Exhibit 10.5    
    

 
    FOURTH AMENDMENT TO CREDIT AGREEMENT    
    

        THIS
AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is entered into as of March 30, 2009, by and between WILLDAN GROUP, INC., a Delaware corporation ("Borrower"), and
WELLS FARGO BANK, NATIONAL ASSOCIATION ("Bank"). 

RECITALS  

        A.    Borrower
is currently indebted to Bank pursuant to the terms and conditions of that certain Credit Agreement between Borrower and Bank dated as of December 28,
2007, as amended from time to time ("Credit Agreement"). 

        B.    Pursuant
to Section 4.9 (b) of the Credit Agreement, Borrower and its Subsidiaries were required to maintain, on a consolidated basis, net losses before
taxes of not more than $1,000,000.00 on an annual basis as of the fiscal year ending January 2, 2009. Borrower and its Subsidiaries sustained net losses before taxes of more than $1,000,000.00
in the fiscal year ending January 2, 2009, resulting in a violation of this covenant and an Event of Default under the Credit Agreement (the "Existing Default"). 

        C.    Borrower
has requested that Bank waive the Existing Default and Bank has agreed to do so, subject to the terms and conditions set forth herein. In addition, Bank and
Borrower have agreed to certain changes in the terms and conditions set forth in the Credit Agreement and have agreed to amend the Credit Agreement to reflect said changes. 

        NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree that the Credit Agreement shall be amended as follows: 

        1.     The
Line of Credit Note dated December 28, 2007 referred to Section 1.1 (a) of the Credit Agreement shall be replaced with a promissory note dated as
of March 30, 2009, (which promissory note shall be deemed the Line of Credit Note defined in and made pursuant to the Credit Agreement). 

        2.     Section 1.2
(c) is hereby deleted in its entirety, and the following substituted therefor: 

        "(c)    Unused Commitment Fee.    Borrower shall pay to Bank a fee equal to thirty-five hundredths percent
(0.35%) per annum (computed on the basis of a 360-day year, actual days elapsed) on the average daily unused amount of the Line of Credit, which fee shall be calculated on a fiscal
quarterly basis by Bank and shall be due and payable by Borrower in arrears within ten (10) days after each billing is sent by Bank." 

        3.     Section 1.4
is hereby deleted in its entirety, and the following substituted therefor: 

        "SECTION 1.4.    COLLATERAL.

        As
security for all indebtedness and other obligations of Borrower to Bank subject hereto, Borrower hereby grants to Bank security interests of first priority in all Borrower's accounts
receivable and other rights to payment, general intangibles, inventory, equipment and custody account number 13041132 held with Wells Fargo Institutional Securities, LLC. 

        As
security for all indebtedness and other obligations of Borrower to Bank subject hereto, Borrower shall cause Willdan Financial Services, Willdan Geotechnical; Willdan Engineering,
Willdan Homeland Solutions, Willdan Energy Solutions and any other Subsidiary (as defined below) to grant to Bank security interests of first priority in all 

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accounts
receivable and other rights to payment, general intangibles, inventory and equipment. 

        All
of the foregoing shall be evidenced by and subject to the terms of such security agreements, financing statements, deeds or mortgages, and other documents as Bank shall reasonably
require, all in form and substance satisfactory to Bank. Borrower shall pay to Bank immediately upon demand the full amount of all charges, costs and expenses (to include fees paid to third parties
and all allocated costs of Bank personnel), expended or incurred by Bank in connection with any of the foregoing security, including without limitation, filing and recording fees and costs of
appraisals, audits and title insurance." 

        4.     Section 4.3
(c) is hereby deleted in its entirety, and the following substituted therefor: 

        "(c) not
later then 30 days after and as of the end of each month, brokerage statements of Borrower;" 

        5.     Section 4.9
is hereby deleted in its entirety, and the following substituted therefor: 

        "SECTION 4.9.    TANGIBLE
NET WORTH.    Using generally accepted accounting principles consistently applied and used consistently with prior practices (except
to the extent modified by the definitions herein), Borrower shall, and shall cause each Subsidiary to, maintain the Tangible Net Worth of Borrower and its Subsidiaries, on a consolidated basis, of not
less than $18,000,000.00 at any time. As used herein, "Tangible Net Worth" is defined as the aggregate of total stockholders' equity less any intangible assets and less any loans or advances to, or
investments in, any related entities or individuals." 

        6.     Subject
to the terms and conditions set forth herein, Bank hereby waives the Existing Default. This waiver applies only to the Existing Default. It is not a waiver of any
breach of any other provision of the Credit Agreement. Except as expressly stated in this Amendment, Bank reserves all of the rights, powers and remedies available to Bank under the Credit Agreement
and any other contracts or instruments signed by Borrower or any guarantor, including the right to cease making advances to Borrower and the right to accelerate any of Borrower's indebtedness, if any
subsequent breach of any other provision of the Credit Agreement should occur. 

        7.     Except
as specifically provided herein, all terms and conditions of the Credit Agreement remain in full force and effect, without waiver or modification. All terms
defined in the Credit Agreement shall have the same meaning when used in this Amendment. This Amendment and the Credit Agreement shall be read together, as one document. 

        8.     Borrower
hereby remakes all representations and warranties contained in the Credit Agreement and reaffirms all covenants set forth therein. Borrower further certifies
that as of the date of this Amendment there exists no Event of Default as defined in the Credit Agreement, nor any condition, act or event which with the giving of notice or the passage of time or
both would constitute any such Event of Default. 

        IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the day and year first written above. 

							
	

WILLDAN GROUP, INC.	 	WELLS FARGO BANK,

NATIONAL ASSOCIATION
	
 By:	
 	
/s/ Kimberly Gant

  Kimberly Gant	
 	
By:	
 	
/s/ Randall Repp

  Randall Repp
	Title:	 	Chief Financial Officer	 	 	 	Vice President

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Exhibit 10.5

FOURTH AMENDMENT TO CREDIT AGREEMENTQuickLinks
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  Exhibit 10.6    
    

			
	WELLS FARGO	 	 REVOLVING LINE OF CREDIT NOTE
	 
	
 $5,000,000.00	
 	
West Covina, California

March 30, 2009

        FOR
VALUE RECEIVED, the undersigned Willdan Group, Inc. ("Borrower") promises to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION ("Bank") at its office at  San Gabriel Valley RCBO, 1000 Lakes Drive, Suite #250, West
Covina, CA 91790, or at such other place as the holder hereof may designate, in lawful money
of the United States of America and in immediately available funds, the principal sum of $5,000,000.00, or so much thereof as may be advanced and be
outstanding, with interest thereon, to be computed on each advance from the date of its disbursement as set forth herein. 

1.     DEFINITIONS:  

        As
used herein, the following terms shall have the meanings set forth after each, and any other term defined in this Note shall have the meaning set forth at the place defined: 

        1.1   "Business
Day" means any day except a Saturday, Sunday or any other day on which commercial banks in California are authorized or required by law to close. 

        1.2   "Fixed
Rate Term" means a period commencing on a Business Day and continuing for one (1), three (3) or six
(6) months, as designated by Borrower, during which all or a portion of the outstanding principal balance of this Note bears interest determined in relation to LIBOR;
provided however, that no Fixed Rate Term may be selected for a principal amount less than $100,000.00; and provided further, that no Fixed Rate Term
shall extend beyond the scheduled maturity date hereof. If any Fixed Rate Term would end on a day which is not a Business Day, then such Fixed Rate Term shall be extended to the next succeeding
Business Day. 

        1.3   "LIBOR"
means the rate per annum (rounded upward, if necessary, to the nearest whole 1/8 of 1%) determined by dividing Base LIBOR by a percentage equal to
100% less any LIBOR Reserve Percentage. 

        (a)   "Base
LIBOR" means the rate per annum for United States dollar deposits quoted by Bank as the Inter-Bank Market Offered Rate, with the understanding that
such rate is quoted by Bank for the purpose of calculating effective rates of interest for loans making reference thereto, on the first day of a Fixed Rate Term for delivery of funds on said date for
a period of time approximately equal to the number of days in such Fixed Rate Term and in an amount approximately equal to the principal amount to which such Fixed Rate Term applies. Borrower
understands and agrees that Bank may base its quotation of the Inter-Bank Market Offered Rate upon such offers or other market indicators of the Inter-Bank Market as Bank in
its discretion deems appropriate including, but not limited to, the rate offered for U.S. dollar deposits on the London Inter-Bank Market. 

        (b)   "LIBOR
Reserve Percentage" means the reserve percentage prescribed by the Board of Governors of the Federal Reserve System (or any successor) for "Eurocurrency
Liabilities" (as defined in Regulation D of the Federal Reserve Board, as amended), adjusted by Bank for expected changes in such reserve percentage during the applicable Fixed Rate Term. 

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        1.4   "Prime
Rate" means at any time the rate of interest most recently announced within Bank at its principal office as its Prime Rate, with the understanding that the Prime
Rate is one of Bank's base rates and serves as the basis upon which effective rates of interest are calculated for those loans making reference thereto, and is evidenced by the recording thereof after
its announcement in such internal publication or publications as Bank may designate. 

2.     INTEREST:  

        2.1    Interest.    The outstanding principal balance of this Note shall bear interest (computed on the basis of a  360-day year,
actual days elapsed) either (a) at a fluctuating rate per annum equal to the Prime Rate in effect from time to time, or
(b) at a fixed rate per annum determined by Bank to be 1.75000% above LIBOR in effect on the first day of the applicable Fixed Rate Term. When
interest is determined in relation to the Prime Rate, each change in the rate of interest hereunder shall become effective on the date each Prime Rate change is announced within Bank. With respect to
each LIBOR selection option selected hereunder, Bank is hereby authorized to note the date, principal amount, interest rate and Fixed Rate Term applicable thereto and any payments made thereon on
Bank's books and records (either manually or by electronic entry) and/or on any schedule attached to this Note, which notations shall be prima facie evidence of the accuracy of the information noted. 

        2.2    Selection of Interest Rate Options.    At any time any portion of this Note bears interest determined in
relation to LIBOR, it may be continued by Borrower at the end of the Fixed Rate Term applicable thereto so that all or a portion thereof bears interest determined in relation to the Prime Rate or to
LIBOR for a new Fixed Rate Term designated by Borrower. At any time any portion of this Note bears interest determined in relation to the Prime Rate, Borrower may convert all or a portion thereof so
that it bears interest determined in relation to LIBOR for a Fixed Rate Term designated by Borrower. At such time as Borrower requests an advance hereunder or wishes to select a LIBOR option for all
or a portion of the outstanding principal balance hereof, and at the end of each Fixed Rate Term, Borrower shall give Bank notice specifying: (a) the interest rate option selected by Borrower;
(b) the principal amount subject thereto; and (c) for each LIBOR selection, the length of the applicable Fixed Rate Term. Any such notice may be given by telephone (or such other
electronic method as Bank may permit) so long as, with respect to each LIBOR selection, (i) if requested by Bank, Borrower provides to Bank written confirmation thereof not later than 3
Business Days after such notice is given, and (ii) such notice is given to Bank prior to 10:00 a.m. on the first day of the Fixed Rate Term, or at a later time during any Business Day if
Bank, at it's sole option but without obligation to do so, accepts Borrower's notice and quotes a fixed rate to Borrower. If Borrower does not immediately accept a fixed rate when quoted by Bank, the
quoted rate shall expire and any subsequent LIBOR request from
Borrower shall be subject to a redetermination by Bank of the applicable fixed rate. If no specific designation of interest is made at the time any advance is requested hereunder or at the end of any
Fixed Rate Term, Borrower shall be deemed to have made a Prime Rate interest selection for such advance or the principal amount to which such Fixed Rate Term applied. 

        2.3    Taxes and Regulatory Costs.    Borrower shall pay to Bank immediately upon demand, in addition to any other
amounts due or to become due hereunder, any and all (a) withholdings, interest equalization taxes, stamp taxes or other taxes (except income and franchise taxes) imposed by any domestic or
foreign governmental authority and related in any manner to LIBOR, and (b) future, supplemental, emergency or other changes in the LIBOR Reserve Percentage, assessment rates imposed by the
Federal Deposit Insurance Corporation, or similar requirements or costs imposed by any domestic or foreign governmental authority or resulting from compliance by Bank with any request or directive
(whether or not having the force of law) from any central bank or other governmental authority and related in any manner to LIBOR to the extent they are 

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not
included in the calculation of LIBOR. In determining which of the foregoing are attributable to any LIBOR option available to Borrower hereunder, any reasonable allocation made by Bank among its
operations shall be conclusive and binding upon Borrower. 

        2.4    Payment of Interest.    Interest accrued on this Note shall be payable on the 1st day of each month,
commencing April 1, 2009. 

        2.5    Default Interest.    From and after the maturity date of this Note, or such earlier date as all principal owing
hereunder becomes due and payable by acceleration or otherwise, the outstanding principal balance of this Note shall bear interest until paid in full at an increased rate per annum (computed on the
basis of a 360-day year, actual days elapsed) equal to 4% above the rate of interest from time to time applicable to this Note. 

3.     BORROWING AND REPAYMENT:  

        3.1    Borrowing and Repayment.    Borrower may from time to time during the term of this Note borrow, partially or
wholly repay its outstanding borrowings, and reborrow, subject to all of the limitations, terms and conditions of this Note and of the Credit Agreement between Borrower and Bank defined below;
provided however, that the total outstanding borrowings under this Note shall not at any time exceed the principal amount stated above. The unpaid principal balance of this obligation at any time
shall be the total amounts advanced hereunder by the holder hereof less the amount of principal
payments made hereon by or for Borrower, which balance may be endorsed hereon from time to time by the holder. The outstanding principal balance of this Note shall be due and payable in full on  January 1,
2010.

        3.2    Advances.    Advances hereunder, to the total amount of the principal sum available hereunder, may be made by
the holder at the oral or written request of (a) Thomas D. Brisbin or Kimberly D. Gant or Roy Gill or Kate Nguyen, any one acting alone, who are
authorized to request advances and direct the disposition of any advances until written notice of the revocation of such authority is received by the holder at the office designated above, or
(b) any person, with respect to advances deposited to the credit of any deposit account of Borrower, which advances, when so deposited, shall be conclusively presumed to have been made to or
for the benefit of Borrower regardless of the fact that persons other than those authorized to request advances may have authority to draw against such account. The holder shall have no obligation to
determine whether any person requesting an advance is or has been authorized by Borrower. 

        3.3    Application of Payments.    Each payment made on this Note shall be credited first, to any interest then due
and second, to the outstanding principal balance hereof. All payments credited to principal shall be applied first, to the outstanding principal balance of this Note which bears interest determined in
relation to the Prime Rate, if any, and second, to the outstanding principal balance of this Note which bears interest determined in relation to LIBOR, with such payments applied to the oldest Fixed
Rate Term first. 

4.     PREPAYMENT:  

        4.1    Prime Rate.    Borrower may prepay principal on any portion of this Note which bears interest determined in
relation to the Prime Rate at any time, in any amount and without penalty. 

        4.2    LIBOR.    Borrower may prepay principal on any portion of this Note which bears interest determined in relation
to LIBOR at any time and in the minimum amount of $100,000.00; provided however, that if the outstanding principal balance of such portion of this Note
is less than said amount, the minimum prepayment amount shall be the entire outstanding principal balance thereof. In consideration of Bank providing this prepayment option to Borrower, or if any such
portion of this Note shall become due and payable at any time prior to the last day of the Fixed 

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Rate
Term applicable thereto by acceleration or otherwise, Borrower shall pay to Bank immediately upon demand a fee which is the sum of the discounted monthly differences for each month from the
month of prepayment through the month in which such Fixed Rate Term matures, calculated as follows for each such month: 

        (a)    Determine the amount of interest which would have accrued each month on the amount prepaid at the interest rate
applicable to such amount had it remained outstanding until the last day of the Fixed Rate Term applicable thereto. 

        (b)    Subtract from the amount determined in (a) above the amount of interest which would have accrued for the same
month on the amount prepaid for the remaining term of such Fixed Rate Term at LIBOR in effect on the date of prepayment for new loans made for such term and in a principal amount equal to the amount
prepaid. 

        (c)    If
the result obtained in (b) for any month is greater than zero, discount that difference by LIBOR used in (b) above. 

Borrower
acknowledges that prepayment of such amount may result in Bank incurring additional costs, expenses and/or liabilities, and that it is difficult to ascertain the full extent of such costs,
expenses and/or liabilities. Borrower, therefore, agrees to pay the above-described prepayment fee and agrees that said amount represents a reasonable estimate of the prepayment costs, expenses and/or
liabilities of Bank. If Borrower fails to pay any prepayment fee when due, the amount of such prepayment fee shall thereafter bear interest until paid at a rate per annum  2.000% above the Prime Rate in
effect from time to time (computed on the basis of a 360-day
year, actual days elapsed). 

5.     EVENTS OF DEFAULT:  

        This
Note is made pursuant to and is subject to the terms and conditions of that certain Credit Agreement between Borrower and Bank dated as of  December 28, 2007, as amended from time to time (the
"Credit Agreement"). Any default in the payment or performance of any obligation under this
Note, or any defined event of default under the Credit Agreement, shall constitute an "Event of Default" under this Note. 

6.     MISCELLANEOUS:  

        6.1    Remedies.    Upon the occurrence of any Event of Default, the holder of this Note, at the holder's option, may
declare all sums of principal and interest outstanding hereunder to be immediately due and payable without presentment, demand, notice of nonperformance, notice of protest, protest or notice of
dishonor, all of which are expressly waived by Borrower, and the obligation, if any, of the holder to extend any further credit hereunder shall immediately cease and terminate. Borrower shall pay to
the holder immediately upon demand the full amount of all payments, advances, charges, costs and expenses, including reasonable attorneys' fees (to include outside counsel fees and all allocated costs
of the holder's in-house counsel), expended or incurred by the holder in connection with the enforcement of the holder's rights and/or the collection of any amounts which become due to the
holder under this Note, and the prosecution or defense of any action in any way related to this Note, including without limitation, any action for declaratory relief, whether incurred at the trial or
appellate level, in an arbitration proceeding or otherwise, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary
proceeding, contested matter or motion brought by Bank or any other person) relating to Borrower or any other person or entity. 

        6.2    Obligations Joint and Several.    Should more than one person or entity sign this Note as a Borrower, the
obligations of each such Borrower shall be joint and several. 

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        6.3    Governing Law.    This Note shall be governed by and construed in accordance with the laws of the State of
California. 

        IN
WITNESS WHEREOF, the undersigned has executed this Note as of the date first written above. 

Willdan
Group, Inc. 

					
	By:	 	/s/ Kimberly Gant

  Kimberly Gant	 	 
	Title:	 	Chief Financial Officer

	 	 

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Exhibit 10.6

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