Document:

Exhibit 10.3  

June 27,
2006 

Mr. Paul
Cellucci

51 Deer Path Farms

Hudson, MA 01749 

Dear
Paul: 

Re: Consulting Agreement with Magna Entertainment Corp. (the "Corporation")

Further
to our discussions, the Corporation wishes to retain you as a consultant to assist it and its affiliates (collectively "the Corporation") to provide certain consulting services. The general
terms and conditions of the consulting arrangement are as follows: 

	1.
	Consulting
Services.    You will initially provide the Corporation with consulting services with respect to the Corporation's initiatives to
establish alternative gaming at its Texas and Ohio racetracks (the "Consulting Services") during the term of and in accordance with the terms and conditions of this agreement. In due course, it
is anticipated by the Corporation that you may be asked to provide further consulting services with respect to the potential acquisition of the New York Racing Association.

	2.
	Consulting
Fees.    In consideration of your performance of the Consulting Services, the Corporation will pay you a base consulting fee for
rendering Consulting Services payable at the rate of US $10,000 per month. Invoices should be rendered by you monthly, in arrears.

	3.
	Expenses.    The
Corporation will reimburse you for all reasonable business expenses actually and properly incurred in carrying out the
Consulting Services to the extent specifically required by the Corporation under this agreement. You will supply supporting vouchers to verify such expenses and will itemize such expenses in each
monthly invoice rendered pursuant to paragraph 2(a) of this agreement. You shall obtain prior approval from the Project Co-ordinator for any expense in excess of US $250.

	4.
	Support.    The
Corporation will provide you with mutually identified work space and clerical assistance at its offices at Aurora, Ontario, when
you are carrying out the Consulting Services to be provided by you under this agreement at such offices. Otherwise, you will be responsible for the expense of all other support services and materials.

	5.
	Co-ordination.    You
will work in conjunction with and co-ordinate the carrying out of your Consulting Services with
Vice-Chairman of the Corporation and his designees. Dennis Mills will act as Project Co-ordinator. 

 
	6.
	Term.    This
agreement shall commence on July 1, 2006, or on such earlier or later date as may be mutually agreed upon, and terminate on
January 1, 2007. This agreement may be immediately terminated by the Corporation in the event you (i) are in material breach of the provisions of this agreement, (ii) die or
(iii) become disabled to such an extent that you are unable to carry out your obligations under this agreement in any material way. This agreement may also be terminated by either party at any
time by giving thirty (30) days prior written notice to the other party.

	7.
	Renewal.    The
Corporation shall have the option to renew this agreement for a further six (6) month term by providing you with written
notice of renewal on or before December 15, 2006. Upon renewal, all of the terms and conditions of this agreement, other than the fees provided for in paragraph 2, shall remain the same.
The fees for such renewal period shall be mutually agreed upon on or before December 15, 2006.

	8.
	Independent
Contractor.    You are an independent contractor and in no way shall you be considered as an employee, agent or joint venturer of the
Corporation. Subject to co-ordination with the persons designated in paragraph 5, you shall determine how, where and when you carry out your Consulting Services. You shall have no
right or authority to represent the Corporation or bind it in any way (including without limiting the generality of the foregoing, to enter into any contract or incur any debt, obligation or
liability, or to make any representations on behalf of the Corporation) and agree that you shall not hold yourself out as having authority to act for the Corporation. Nothing in this agreement will
prevent you from providing consulting services to third parties provided that the provision of such services do not unreasonably interfere with your performance of Consulting Services under this
agreement or breach the provisions of paragraphs 11 and 12 in any respect.

	9.
	Licenses,
Taxes, etc.    As an independent contractor you will obtain all necessary licenses and complete all necessary registrations for the
operation of your consulting business. You shall also be responsible for payment of all applicable federal, state and local taxes on your consulting income and for all unemployment, social security,
workers' compensation or income taxes or withholdings for you and your employees. The Corporation will not be responsible for any of the foregoing either for yourself or any of your employees.

	10.
	Compliance
with Privacy Laws:    You agree to comply with the Canadian Personal Information and Protection of Electronic
Documents Act ("PIPEDA") and such other Legislation and Regulations pertaining to privacy of personal information ("Privacy Laws") with respect to the receipt and use of
personal information relating to the Corporation's customers. You further acknowledge that Privacy Law requirements include the need to:

	a)
	properly
secure such information;

	b)
	use
such information only for the purpose it was made available;

	c)
	co-operate
with access requests; and

	d)
	either
return or destroy such information once it is no longer needed for the Project. 

2

 

	11.
	Competition.    During
the term of this agreement and for six (6) months following its expiry or termination you will not directly or
indirectly be employed by, perform services for, act as an officer or director of or assist in any manner whatsoever, any businesses competitive with or affiliated with a business competitive with the
Corporation without the Corporation's prior written consent.

	12.
	Confidentiality.    You
will treat as confidential and will not disclose, directly or indirectly, any secret or confidential financial or other
information belonging or relating to the Corporation, their customers and suppliers at any time during or after the expiration or termination of this agreement. You shall execute a separate
Confidentiality Agreement if requested by the Corporation.

	13.
	Indemnity.    You
will indemnify the Corporation for any costs, expenses or damages arising from your failure to comply in all material respects
with the provisions of paragraphs 9, 10, 11 and 12 of this agreement. 

If
the terms of the consulting agreement set out in this letter are acceptable to you, please sign and date both copies of this letter and return one copy to me. 

Yours
very truly, 

Don
Amos

Executive Vice-President and

Chief Operating Officer 

The
undersigned agrees to the terms and conditions contained in this letter. 

	Date:
                                         
                               , 2006	 	                                        
                                

Paul Cellucci

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Exhibit 10.1    
    

[ORANGE
COUNTY BUSINESS BANK LOGO] 

	 
	 	 
	 	 
	 	 
	 	 

	LOAN NUMBER	 	LOAN NAME	 	ACCT. NUMBER	 	AGREEMENT DATE	 	INITIALS
	010174420	 	THE WILLDAN GROUP OF

COMPANIES	 	 	 	05/24/05	 	NG1
	
NOTE AMOUNT	
 	
INDEX (w/Margin)	
 	
RATE	
 	
MATURITY DATE	
 	
LOAN PURPOSE
	$8,000,000.00	 	Wall Street Journal Prime plus

0.250%	 	6.25%	 	07/31/07	 	Commercial

Creditor Use Only

 
 

COMMERCIAL LOAN AGREEMENT
  Revolving Draw Loan

DATE AND PARTIES.    The date of this Commercial Loan Agreement (Agreement) is June 24, 2005. The parties and their addresses are as
follows: 

LENDER:

    ORANGE COUNTY BUSINESS BANK.N.A.

    4675 Mac Arthur Court Suite 100

    Newport Beach, California 92660 

BORROWER:

    THE WILLDAN GROUP OF COMPANIES

    a CALIFORNIA Corporation

    2401 EAST KATELLA AVENUE #300

    ANAHEIM, California 92806 

1.    DEFINITIONS. For the purposes of this Agreement, the following terms have the following meanings. 

A. Accounting Terms.    In this Agreement, any accounting terms that are not specifically defined will have their customary meanings under
generally accepted accounting principles. 

B. Insiders.    Insiders include those defined as insiders by the United States Bankruptcy Code, as amended; or to the extent left undefined,
include without limitation any officer, employee, stockholder or member, director, partner, or any immediate family member of any of the foregoing, or any person or entity which, directly or
indirectly, controls, is controlled by or is under common control with me. 

C. Loan.    The Loan refers to this transaction generally, including obligations and duties arising from the terms of all documents prepared
or submitted for this transaction. 

D. Loan Documents.    Loan Documents refer to all the documents executed as a part of or in connection with the Loan. 

E. Pronouns.    The pronouns "I", "me" and "my" refer to every Borrower signing this Agreement, individually or together. "You" and "your"
refers to the Loan's lender. 

F. Property.    Property is any property, real, personal or intangible, that secures my performance of the obligations of this Loan. 

1

 

2.    ADVANCES. Advances under this Agreement are made according to the following terms and conditions. 

A. Multiple Advances—Revolving.    In accordance with the terms of this Agreement and other Loan Documents, you will provide me
with a revolving draw note and the maximum outstanding principal balance will not exceed $8,000,000.00 (Principal). 

B. Requests for Advances.    My requests are a warranty that I am in compliance with all the Loan Documents. When required by you for a
particular method of advance, my requests for an advance must specify the requested amount and the date and be accompanied with any agreements, documents, and instruments that you require for the
Loan. Any payment by you of any check, share draft or other charge may, at your option, constitute an advance on the Loan to me. All advances will be made in United States dollars. I will indemnify
you and hold you harmless for your reliance on any request for advances that you reasonably believe to be genuine. To the extent permitted by law, I will indemnify you and hold you harmless when the
person making any request represents that I authorized this person to request an advance even when this person is unauthorized or this person's signature is not genuine. 

Dan
W. Heil or Roy L. Gill or Kate Mai Nguyen or others as directed and authorized by The Willdan Group of Companies Board of Directors are authorized to act on my behalf may request advances by the
following methods. 

	(1)
	I
make a request in person.

	(2)
	I
make a request by phone.

	(3)
	I
make a request by on line banking.

	(4)
	Loan
sweep. 

C. Advance Limitations.    In addition to any other Loan conditions, requests for, and access to, advances are subject to the following
limitations. 

	(1)
	Obligatory
Advances. You will make all Loan advances subject to this Agreement's terms and conditions.

	(2)
	Advance
Amount. Subject to the terms and conditions contained in this Agreement, advances will be made in exactly the amount I request.

	(3)
	Cut-Off
Time. Requests for an advance received before 04:00 PM will be made on any day that you are open for business, on the day for which the advance is requested.

	(4)
	Disbursement
of Advances. On my fulfillment of this Agreement's terms and conditions, you will disburse the advance in any manner as you and I agree.

	(5)
	Credit
Limit. I understand that you will not ordinarily grant a request for an advance that would cause the unpaid principal of my Loan to be greater than the Principal limit. You
may, at your option, grant such a request without obligating yourselves to do so in the future.

	(6)
	Records.
Your records will be conclusive evidence as to the amount of advances, the Loan's unpaid principal balances and the accrued interest. 

D. Conditions.    I will satisfy all of the following conditions before you either issue any promissory notes or make any advances under this
Agreement. 

	(1)
	No
Default. There has not been a default under this Agreement or any other Loan Documents nor would a default result from making the Loan or any advance. 

2

 

	(2)
	Information.
You have received all documents, information, certifications and warranties as you may require, all properly executed, if appropriate, on forms acceptable to you. This
includes, but is not limited to, the documents and other items listed in the Loan Checklist Report which is hereby incorporated by reference into this Agreement.

	(3)
	Inspections.
You have made all inspections that you consider necessary and are satisfied with this inspection.

	(4)
	Conditions
and Covenants. I will have performed and complied with all conditions required for an advance and all covenants in this Agreement and any other Loan Documents.

	(5)
	Warranties
and Representations. The warranties and representations contained in this Agreement are true and correct at the time of making the requested advance.

	(6)
	Financial
Statements. My most recent financial statements and other financial reports, delivered to you, are current, complete, true and accurate in all material respects and fairly
represent my financial condition.

	(7)
	Bankruptcy
Proceedings. No proceeding under the United States Bankruptcy Code has been commenced by or against me or any of my affiliates. 

Notwithstanding anything herein to the contrary line of credit advance provisions shall include but are not limited to

Subject
to the terms and conditions hereof, herein described credit facility will convert to a formula based revolving line of credit when line of credit usage exceeds six million dollars
($6,000,000.00). All advances under the formula based line of credit provision shall be limited to eighty percent (80%) of Eligible Receivables and twenty-five percent (25%) of untilled
work in process up to sixty (60) days old or eight million dollars, ($8,000,000.00) whichever is lower. 

Eligible
Receivables: Eligible receivables are all of Borrower's accounts which contain selling terms and conditions acceptable to Lender, defined as those receivables aged less than one hundred
twenty-one (121) days from invoice date and do not include foreign receivables, accounts in bankruptcy, contra accounts, accounts that comprise more than twenty percent (20%) of the
total receivable balance and cross agings of twenty percent (20%). 

Once
a formula base credit line is in effect, Borrower shall deliver to Lender, as of the end of each month a Borrowing Base Certificate, calculation of Ineligible Accounts, detailed Accounts
Receivable Aging and Accounts Payable Aging and Work In Process Report within twenty (20) days of each month end. 

Two million dollars ($2,000,000.00) of the revolving line of credit can be converted to two term loans and is subject to the following provisions

	•
	A
maximum one million dollars ($1,000,000.00) for expenses incurred to start up a new division and or business unit of Borrower can be converted to a fully amortized term
loan for a period of up to three (3) years.

	•
	A
maximum one million dollars ($1,000,000.00) for the acquisition of other companies can be converted to a fully amortized term loan for a period of up to three years.

	•
	Once
the conversion of either or both term loans has been executed, the amount available for borrowing hereunder shall be permanently reduced by the total balance(s) of such
amount.

 

	3.
	MATURITY DATE. I agree to fully repay the Loan by July 31, 2007. 

3

 
	4.
	WARRANTIES AND REPRESENTATIONS. I make to you the following warranties and representations which will continue as long as this Loan is
in effect, except when this Agreement provides otherwise. 

A. Power.    I am duly organized, and validly existing and in good standing in all jurisdictions in which I operate. I have the power and
authority to enter into this transaction and to carry on my business or activity as it is now being conducted and, as applicable, am qualified to do so in each jurisdiction in which I operate. 

B. Authority.    The execution, delivery and performance of this Loan and the obligation evidenced by the Note are within my powers, have been
duly authorized, have received all necessary governmental approval, will not violate any provision of law, or order of court or governmental agency, and will not violate any agreement to which I am a
party or to which I am or any of my property is subject. 

C. Name and Place of Business.    Other than previously disclosed in writing to you I have not changed my name or principal place of business
within the last 10 years and have not used any other trade or
fictitious name. Without your prior written consent, I do not and will not use any other name and will preserve my existing name, trade names and franchises. 

D. Hazardous Substances.    Except as I previously disclosed in writing and you acknowledge in writing, no Hazardous Substance, underground
tanks, private dumps or open wells are currently located at, on, in, under or about the Property. 

E. Use of Property.    After diligent inquiry, I do not know or have reason to know that any Hazardous Substance has been discharged, leached
or disposed of, in violation of any Environmental Law, from the property onto, over or into any other property, or from any other property onto, over or into the property. 

F. Environmental Laws.    I have no knowledge or reason to believe that there is any pending or threatened investigation, claim, judgment or
order, violation, lien, or other notice under any Environmental Law that concerns me or the property. The property and any activities on the property are in full compliance with all Environmental Law. 

G. Loan Purpose.    This Loan is for Commercial purposes. 

H. No Other Liens.    I own or lease all property that I need to conduct my business and activities. I have good and marketable title to all
property that I own or lease. All of my Property is free and clear of all liens, security interests, encumbrances and other adverse claims and interests, except those to you or those you consent to in
writing. 

I. Compliance With Laws.    I am not violating any laws, regulations, rules, orders, judgments or decrees applicable to me or my property,
except for those which I am challenging in good faith through proper proceedings after providing adequate reserves to fully pay the claim and its challenge should I lose. 

J. Legal Dispute.    There are no pending or threatened lawsuits, arbitrations or other proceedings against me or my property that singly or
together may materially and adversely affect my property, operations, financial condition, or business. 

K. Adverse Agreements.    I am not a party to, nor am I bound by, any agreement that is now or is likely to become materially adverse to my
business, Property or operations. 

L. Other Claims.    There are no outstanding claims or rights that would conflict with the execution, delivery or performance by me of the
terms and conditions of this Agreement or the other Loan Documents. No outstanding claims or rights exist that may result in a lien on the 

4

 

Property,
the Property's proceeds and the proceeds of proceeds, except liens that were disclosed to and agreed to by you in writing. 

M. Solvency.    I am able to pay my debts as they mature, my assets exceed my liabilities and I have sufficient capital for my current and
planned business and other activities. I will not become insolvent by the execution or performance of this Loan. 

	5.
	FINANCIAL STATEMENTS. I will prepare and maintain my financial records using consistently applied generally accepted accounting
principles then in effect. I will provide you with financial information in a form that you accept and under the following terms. 

A. Certification.    I represent and warrant that any financial statements that I provide you fairly represents my financial condition for the
stated periods, is current, complete, true and accurate in all material respects, includes all of my direct or contingent liabilities and there has been no material adverse change in my financial
condition, operations or business since the date the financial information was prepared. 

B. SEC Reports.    I will provide you with true and correct copies of all reports, notices or statements that I provide to the Securities and
Exhange Commission, any securities exchange or my stockholders, owners, or the holders of any material indebtedness as soon as available or at least with    days after issuance. 

C. Requested Information.    I will provide you with any other information about my operations, financial affairs and condition within twenty
(20) days after your request. 

	6.
	COVENANTS. Until the Loan and all related debts, liabilities and obligations are paid and discharged. I will comply with the following
terms, unless you waive compliance in writing. 

A. Participation.    I consent to you participating or syndicating the Loan and sharing any information that you decide is necessary about me
and the Loan with the other participants or syndicators. 

B. Inspection.    Following your written request, I will immediately pay for all one-time and recurring
out-of-pocket costs that are related to the inspection of my records, business or Property that secures the Loan. Upon reasonable notice, I will permit you or your agents to
enter any of my premises and any location where my Property is located during regular business hours to do the following. 

	(1)
	You
may inspect, audit, check, review and obtain copies from my books, records, journals, orders, receipts, and any correspondence and other business related data.

	(2)
	You
may discuss my affairs, finances and business with any one who provides you with evidence that they are a creditor of mine, the sufficiency of which will be subject to your sole
discretion.

	(3)
	You
may inspect my Property, audit for the use and disposition of the Property's proceeds and proceeds of proceeds; or do whatever you decide is necessary to preserve and protect the
Property and your interest in the Property. 

After
prior notice to me, you may discuss my financial condition and business operations with my independent accountants, if any, or my chief financial officer or controller and I may be present
during these discussions. As long as the Loan is outstanding, I will direct all of my accountants and auditors to permit you to examine my records in their possession and to make copies of these
records. You will use your best efforts to maintain the confidentiality of the information you or your agents obtain, except you may provide your regulator, if any, with required information about my
financial condition, operation and business or that of my parent, subsidiaries or affiliates. 

5

 

C. Business Requirements.    I will preserve and maintain my present existence and good standing in the jurisdiction where I am organized and
all of my rights, privileges and franchises. I will do all that is needed or required to continue my business or activities as presently conducted, by obtaining licenses, permits and bonds everywhere
I engage in business or activities or own, lease or locate my property. I will obtain your prior written consent before I cease my business or before I engage in any new line of business that is
materially different from my present business. 

D. Compliance with Laws.    I will not violate any laws, regulations, rules, orders, judgments or decrees applicable to me or my Property,
except for those which I challenge in good faith through proper proceedings after providing adequate reserves to fully pay the claim and its appeal should I lose. Laws include without limitation the
Federal Fair Labor Standards Act requirements for producing goods, the federal Employee Retirement Income Security Act of 1974's requirements for the establishment, funding and management of qualified
deferred compensation plans for employees, health and safety laws, environmental laws, tax laws, licensing and permit laws. On your request, I will provide you with written evidence that I have fully
and timely paid my taxes, assessments and other governmental charges levied or imposed on me, my income or profits and my property. Taxes include without limitation sales taxes, use taxes, personal
property taxes, documentary stamp taxes, recordation taxes, franchise taxes, income taxes, withholding taxes. FICA taxes and unemployment taxes. I will adequately provide for the payment of these
taxes, assessments and other charges that have accured but are not yet due and payable. 

E. New Organizations.    I will obtain your written consent and any necessary changes to the Loan Documents before I organize or participate
in the organization of any entity, merge into or consolidate with any one, permit any one else to merge into me, acquire all or substantially all of the assets of any one else or otherwise materially
change my legal structure, management, ownership or financial condition. 

F. Dealings with Insiders.    I will not purchase, acquire or lease any property or services from, or sell, provide or lease any property or
services to, or permit any outstandings loans or credit extensions to, or otherwise deal with, any insiders except as required under contracts existing at the time I applied for the Loan and approved
by you or as this Agreement otherwise permits. I will not change or breach these contracts existing at Loan application so as to cause an acceleration of or an increase in any payments due. 

G. Other Debts.    I will pay when due any and all other debts owed or guaranteed by me and will faithfully perform, or comply with all the
conditions and oligations imposed on me concerning the debt or guaranty. 

H. Other Liabilities.    I will not incur, assume or permit any debt evidenced by notes, bonds or similar obligations, except: debt in
existence on the date of this Agreement and fully disclosed to you; debt subordinated in payment to you on conditions and terms acceptable to you; accounts payable incurred in the ordinary course of
my business and paid under customary trade terms or contested in good faith with reserves satisfactory to you. Unless otherwise agreed to in writing by Lender 

	*
	Acquisitions
of other companies are not permitted 

I. Notice to You.    I will promptly notify you of any material change in my financial condition, of the occurrence of a default under the
terms of this Agreement or any other Loan Document, or a default by me and under any agreement between me and any third party which materially and adversely affects my property, operations, financial
condition or business. 

J. Certification of No Default.    On your request, my chief financial officer or controller or my Independent accountant will provide you
with a written certification that to the best of their knowledge no event of default exists under the terms of this Agreement or the other Loan 

6

 

Documents,
and that there exists no other action, condition or event which with the giving of notice or lapse of time or both would constitute a default. As requested, my chief financial officer or
controller or my independent accounatnt will also provide you with computations demonstrating compliance with any financial covenants and ratios contained in this Agreement. If an action, condition or
event of default does exist, the certificate must accurately and fully disclose the extent and nature of this action, condition or event and state what must be done to correct it. 

K. Use of Loan Proceeds.    I will not permit the loan proceeds to be used to purchase, carry, reduce, or retire any loan originally incurred
to purchase or carry any margin stock or otherwise cause the Loan to violate Federal Reserve Board Regulations U or X, or Section 8 of the Securities and Exchange Act of 1934 and its
regulations, as amended. 

L. Dispose of No Assets.    Without your prior written consent or as the Loan Documents permit, I will not sell, lease, assign, transfer,
dispose of or otherwise distribute all or substantially all of my assets to any person other than in the ordinary course of business for the assets' depreciated book value or more. 

M. No Other Liens.    I will not create, permit or suffer any lien or encumbrance upon any of my properties for or by anyone, other than you,
except for: nonconsensual liens imposed by law arising out of the ordinary course of business on obligations that are not overdue or which I am contesting in good faith after making appropriate
reserves; valid purchase money security interests on personal property; or any other liens specifically agreed to by you in writing. 

N. Guaranties.    I will not guaranty or become liable in any way as surety, endorser (other than as endorser of negotiable instruments in the
ordinary course of business) or accommodation endorser or otherwise for the debt or obligations of any other person or entity, except to you or as you otherwise specifically agree in writing. 

O. No Default under Other Agreements.    I will not allow to occur, or to continue unremedied, any act, event or condition which constitutes a
default, or which, with the passage of time or giving of notice, or both, would constitute a default under any agreement, document, instrument or undertaking to which I am a party or by which I may be
bound. 

P. Legal Disputes.    I will promptly notify you in writing of any threatened or pending lawsuit, arbitration or other proceeding against me
or any of my property, not identified in my financial statements, or that singly or together with other proceedings may materially and adversely affect my property, operations, financial condition or
business. I will use my best efforts to bring about a favorable and speedy result of any of these lawsuits, arbitrations or other proceedings. 

Q. Other Notices.    I will immediately provide you with any information that may materially and adversely affect my ability to perform this
Agreement and of its anticipated effect. 

R. No Change in Capital.    I will not make any distribution or declare or pay any dividends (in cash or in stock) on, or purchase, acquire
redeem, or retire any of Borrower's capital stock, of any class, whether now or hereafter outstanding. If Borrower is a "Subchapter S Corporation" (as defined in the Internal Revenue Code of 1986, as
amended), Borrower may pay cash dividends on its stock to its shareholders from time to time in amounts necessary to enable the shareholders to pay income taxes and make estimated income tax payments
to satisfy their liabilities under federal and state law which arise solely from their status as shareholders of a Subchapter S Corporation because of their ownership of shares of Borrower's stock, or
purchase or retire any of Borrower's outstanding shares or alter or amend Borrowers capital structure. 

	•
	Individual
stock repurchase in excess of fifty thousand dollars ($50,000.00) are not permitted unless otherwise agreed to in writing by Lender. 

7

 

S. Loan Obligations.    I will make full and timely payment of all principal and interest obligations, and comply with the other terms and
agreements contained in this Agreement and in the other Loan Documents. 

T. Insurance.    I will obtain and maintain Insurance with insurers, in amounts and coverages that are acceptable to you and customary with
industry practice. This may include without limitation insurance policies for public liability, fire, hazard and extended risk, workers compensation, and, at your request, business interruption and/or
rent loss insurance. At your request, I will deliver to you certified copies of
all of these insurance policies, binders or certificates. I will obtain and maintain a mortgages or lender loss payee endorsement for you when these endorsements are available. I will immediately
notify you of cancellation or termination of insurance. I will require all insurance policies to provide you with at least 10 days prior written notice to you of cancellation or modification. I
consent to you using or disclosing information relative to any contract of insurance required by the Loan for the purpose of replacing this insurance. I also authorize my insurer and you to exchange
all relevant information related to any contract of insurance required by any document executed as part of this Loan. 

U. Property Maintenance.    I will keep all tangible and intangible property that I consider necessary or useful in my business in good
working condition by making all needed repairs, replacements and improvements and by making all rental, lease or other payments due on this property. 

V. Property Loss.    I will immediately notify you, and the insurance company when appropriate, of any material casualty, loss or depreciation
to the Property or to my other property that affects my business. 

W. Accounts Receivable Collection.    I will collect and otherwise enforce all of my unpaid Accounts Receivable at my cost and expense, until
you end my authority to do so, which you may do at any time to protect your best interests. I will not sell, assign or otherwise dispose of any Accounts Receivable without your written consent. I will
not commingle the Accounts Receivable proceeds with any of my other property. 

X. Reserves.    You may set aside and reserve Loan proceeds for Loan interest, fees and expenses, taxes, and insurance. 

No
interest will accrue on any reserve Loan proceeds. Disbursement of reserves is disbursement of the Loan's proceeds. At my request, you will disburse the reserves for the purpose they were set aside
for, as long as I am not in default under this Agreement. You may directly pay these reserved items, reimburse me for payments I made, or reduce the reserves and increase the Loan proceeds available
for disbursement. 

Y. Minimum Tangible Net Worth.    I will maintain a tangible net worth, determined under consistently applied generally accepted accounting
principles, of $9,000,000.00 or more by December 31, 2005 and measured quarterly thereafter. Tangible net worth is the amount that total assets exceed total liabilities. For determining
tangible net worth, total assets will exclude all intangible assets, including without limitation goodwill, patents, trademarks, trade names, copyrights, and franchises, and will also exclude all
Accounts Receivable, owned by my Insiders, that do not provide for a repayment schedule. 

Z. Additional Taxes.    I will pay all filling and recording costs and fees, including any recordation, documentary or transfer taxes or
stamps, that are required to be paid with respect to this Loan and any Loan Documents. 

8

 

Borrower covenants and agrees with Lender that while this Agreement is in effect, Borrower shall submit to Lender in substance and form satisfactory to Lender: Additional
Financial Reporting Covenants

Borrower's
annual CPA unqualified audited financial statements as available and in no event later than one hundred and fifty (150) days after each fiscal year end. Said financial statements
shall be the consolidated statements of all Willdan Group of Companies, including but not limited to all Corporate Guarantors of herein described credit facility. 

Borrower's
monthly company prepared, financial statements (including balance sheet and income statement) as soon as available and in no event later than forty five (45) days after each month
end. 

Borrower's
annual tax returns, including all K-1 schedules and schedule "C" (if applicable), no later than ten (10) days after filing or in the case of extensions (copies also to be
provided), no later than six (6) months after first filing due date. 

Borrower
shall submit monthly accounts receivable agings, accounts payable agings and work in process reports within forty-five (45) days of each month end until such time that
credit facility exceeds six million dollars ($6,000,000.00) and follows the formula based reporting convenants. 

Guarantor's
annual, signed and dated personal financial statement as soon as available but in no event later then June 30th each year. Commencing June 30, 2006. 

Guarantor's
annual tax returns, including all K-7 schedules and schedule "C" (if applicable), no later than ten (10) days after filing or in the case of extensions (copies also to
be provided), no later then six (6) months after first filing due date. 

Financial Reporting Ratios  

Current
Ratio, Maintain a Current Ration in excess of 1.10 to 1.00. The term Current Ratio means Borrowers total Current Assets divided by Borrower's total Current Liabilities. This liquidity ratio
will be evaluated at of each quarter end. 

Debt
Service Coverage Ratio. Maintain a ratio of Debt Service Coverage in excess of 1.50:1. The term "Debt Service Coverage" means Borrower's Net Profits plus Depreciation, Depletion and Amortization
divided by Borrower's Current Portion of Long Term Indebtedness. This coverage ratio will be evaluated as of each year end. 

At
Borrower's option and Lender's concurrence, as long as the loan agreement is in effect, shareholder debt, if subordinated to Lender, will be considered as net worth for purposes of calculating
tangible net worth. 

Additional Provisions  

Borrower
agrees to maintain its principal depository relationship with Lender. 

Dan
Heil to subordinate UCC-1 Financing statement, filed as instrument No. 0401560468 with California Secretary of State. 

	7.
	DEFAULT. I will be in default if any of the following occur: 

A. Payments.    I fail to make a payment in full within ten (10) days of due date. 

B. Insolvency or Bankruptcy.    The death, dissolution or insolvency of, appointment of a receiver by or on behalf of, application of any
debtor relief law, the assignment for the benefit of creditors by or on behalf of, the voluntary or involuntary termination of existence by, or the commencement 

9

 

of
any proceeding under any present or future federal or state insolvency, bankruptcy, reorganization, composition or debtor relief law by or against me or any co-signer, endorser, surety
or guarantor of this Agreement or any other obligations I have with you. 

C. Business Termination.    I merge, dissolve, reorganize, end my business or existence, or a partner or majority owner dies or is declared
legally incompetent. 

D. Failure to Perform.    I fail to perform any condition or to keep any promise or covenent of this Agreement within twenty (20) days
of notice. 

E. Other Documents.    A default occurs under the terms of any other Loan Document. 

F. Other Agreements.    I am in default on any other debt or agreement I have with you. 

G. Misrepresentation.    I make any verbal or written statement or provide any financial information that is untrue, inaccurate, or conceals a
material fact at the time it is made or provided. 

H. Judgement.    I fail to satisfy or appeal any judgment against me. 

I. Forfeiture.    The Property is used in a manner or for a purpose that threatens confiscation by a legal authority. 

J. Name Change.    I change my name or assume an additional name without notifying you before making such a change. 

K. Property Transfer.    I transfer all or a substantial part of my money or property. 

L. Property Value.    The value of the Property materially declines or is impaired. 

M. Material Change.    Without first notifying you, there is a material change in my business, including ownership, management, and financial
conditions. 

N. Insecurity.    You reasonably believe that you are insecure. 

	8.
	REMEDIES.    After I default, and after you give any legally required notice and opportunity to cure the default, you may at
your option do any one or more of the following. 

A. Acceleration.    You may make all or any part of the amount owing by the terms of the Loan immediately due. If I am a debtor in a
bankruptcy petition or in an application filed under section 5(a)(3) of the Securities Investor Protection Act, the Loan is automatically accelerated and immediately due and payable without
notice or demand upon filing of the petition or application. 

B. Sources.    You may use any and all remedies you have under state or federal law or in any Loan Document. 

C. Insurance Benefits.    You may make a claim for any and all insurance benefits or refunds that may be available on my default. 

D. Payments Made On My Behalf.    Amounts advanced on my behalf will be immediately due and may be added to the balance owing under the terms
of the Loan, and accrue interest at the highest post-maturity interest rate. 

E. Termination.    You may terminate my right to obtain advances and may refuse to make any further extensions of credit. 

F. Set-Off.    You may use the right of set-off. This means you may set-off any amount due and payable
under the terms of the Loan against any right I have to receive money from you. 

My
right to receive money from you includes any deposit or share account balances I have with you; any money owed to me on an item presented to you or in your possession for collection or 

10

 

exchange;
and any repurchase agreement or other non-deposit obligation, "Any amount due and payable under the terms of the Loan" means the total amount to which you are entitled to demand
payment under the terms of the Loan at the time you set-off. 

Subject
to any other written contract, if my right to receive money from you is also owned by someone who has not agreed to pay the Loan, your right of set-off will apply to my interest in
the obligation and to any other amounts I could withdraw on my sole request or endorsement. 

Your
right of set-off does not apply to an account or other obligation where my rights arise only in a representative capacity. It also does not apply to any Individual Retirement Account
or other tax-deferred retirement account. In addition, your right to set-off against any demand deposit accounts I have deposited with you may be limited by applicable
California law. In certain circumstances, I may be entitled to a notice of set-off. State law may further limit your right of set-off. 

You
will not be liable for the dishonor of any check when the dishonor occurs because you set-off against any of my accounts. I agree to hold you harmless from any such claims arising as a
result of your exercise of your right to set-off. 

G. Waiver.    Except as otherwise required by law, by choosing any one or more of these remedies you do not give up your right to use any
other remedy. You do not waive a default it you choose not to use a remedy. By electing not to use any remedy, you do not waive your right to later consider the event a default and to use any remedies
if the default continues or occurs again. 

	9.
	COLLECTION EXPENSES AND ATTORNEYS' FEES. On or after Default, to the extent permitted by
law, I agree to pay all expenses of collection, enforcement or protection of your rights and remedies under this Agreement or any other Loan Document. Expenses include, but are not limited to,
attorneys' fees, court costs and other legal expenses. These expenses are due and payable immediately. If not paid immediately, these expenses will bear interest from the date of payment until paid in
full at the highest interest rate in effect as provided for in the terms of this Loan. All fees and expenses will be secured by the Property I have granted to you, if any. In addition, to the extent
permitted by the United States Bankruptcy Code, I agree to pay the reasonable attorneys' fees incurred by you to protect your rights and interests in connection with any bankruptcy proceedings
initiated by or against me.

	10.
	APPLICABLE LAW.    This Agreement is governed by the laws of California, the United States of America and to the extent
required, by the laws of the jurisdiction where the Property is located. In the event of dispute, the exclusive forum, venue and place of jurisdiction will be in California, unless otherwise required
by law.

	11.
	JOINT AND INDIVIUAL LIABILITY AND SUCCESSORS.    My obligation to pay the Loan is independent of the obligation of any other
person who has also agreed to pay it. You may sue me alone, or anyone else who is obligated on the Loan, or any number of us together, to collect the Loan. Extending the loan or new obligations under
the Loan, will not affect my duty under the Loan and I will still be obligated to pay the Loan. You may assign all or part of your rights or duties under this Agreement or the Loan Documents without
my consent. If you assign this Agreement, all of my covenants, agreements, representations and warrants contained in this Agreement or the Loan Documents will benefit your successors and assigns. I
may not assign this Agreement or any of my rights under it without your prior written consent. The duties of the Loan will bind my successors and assigns.

	12.
	AMENDMENT, INTEGRATION AND SEVERABILITY. This Agreement may not be amended or modified by oral agreement. No amendment or modification
of this Agreement is effective unless made in writing and executed by you and me. This Agreement and the other Loan Documents are the complete and final expression of the understanding between you and
me. If any provision of 

11

 

this
Agreement is unenforceable, then the unenforceable provision will be severed and the remaining provisions will still be enforceable. 

	13.
	INTERPRETATION. Whenever used, the singular includes the plural and the plural includes the singular. The section headings are for
convenience only and are not to be used to interpret or define the terms of this Agreement.

	14.
	NOTICE, FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Unless otherwise required by law, any notice will be given by delivering it or
mailing it by first class mail to the appropriate party's address listed in the DATE AND PARTIES section, or to any other address designated in writing. Notice to one Borrower will be deemed to be
notice to all Borrowers. I will inform you in writing of any change in my name, address or other application information. I will provide you any financial statement of information you request. All
financial statements and information I give you will be correct and complete. I agree to sign, deliver, and file any additional documents or certifications that you may consider necessary to perfect,
continue, and preserve my obligations under this Loan and to confirm your lien status on any Property. Time is of the essence.

	15.
	WAIVER OF JURY TRIAL. All of the parties to this agreement agree to waive our respective right to trial by jury of any cause of action,
claim, counterclaim or cross-complaint in any action, proceeding, or hearing brought by either party on any matter arising out of or in any way related to this transaction, the parties' relationship
or any claim of injury or damage, or the enforcement of any remedy under any law, statute, or regulation, in effect or as amended.

	16.
	SIGNATURES. By signing, I agree to the terms contained in this Agreement. I also acknowledge receipt of a copy of this Agreement. 

BORROWER:

THE
WILLDAN GROUP OF COMPANIES 

	By:	 	/s/ Dan W. Heil
 DAN W. HEIL, CHAIRMAN OF THE BOARD

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QuickLinks

Exhibit 10.1

COMMERCIAL LOAN AGREEMENT Revolving Draw Loan

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