Document:

EXHIBIT 10.11

 

SECOND AMENDMENT TO SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

AGREEMENT FOR KIRK D. FOX

 

This
Second Amendment to the Supplemental Executive Retirement Plan Agreement for
Kirk D. Fox entered into between Kirk D. Fox and Halifax National Bank dated March 29,
2007, and amended on June 18, 2008, is entered into between Kirk D. Fox (“Executive”)
and Riverview National Bank (“Bank”) and made this 2nd day of September, 2009.

 

WHEREAS, Halifax National Bank and Fox entered into a
Supplemental Executive Retirement Agreement dated March 29, 2007, and
amended on June 18, 2008 (“SERP Agreement”);

 

WHEREAS, Halifax National Bank and The First National Bank
of Marysville consolidated into Bank on December 31, 2008;

 

WHEREAS, Section 10.1 of the SERP Agreement requires a
reduction in the payment under the SERP Agreement to the extent necessary to
avoid the imposition of an excise tax under Code Section 4999;

 

WHEREAS, Executive entered into an Amended and Restated
Employment Agreement with Riverview Financial Corporation and Bank dated December 31,
2008 (“Employment Agreement”);

 

WHEREAS, paragraph VI. 3 of the Employment Agreement
provides that if an excise tax is imposed under Code Section 4999, then
the Executive would receive an additional payment such that the after tax
amount will be equivalent to the excise tax imposed; and

 

WHEREAS, the parties wish to amend Section 10.1 of the
SERP Agreement to correct the inconsistency between the SERP Agreement and
Employment Agreement.

 

NOW, THEREFORE, in consideration of the covenants hereinafter
set forth, and intending to be legally bound hereby, the parties agree,
effective the date hereof, as follows:

 

1.                                       Section 10.1
of the SERP Agreement shall be amended in its entirety to provide:

 

10.1  Excess
Parachute or Golden Parachute Payment.  Notwithstanding any provision of this
Agreement to the contrary, in the event that any benefit provided under this
Agreement when added to all other amounts or benefits provided to or on behalf
of the Executive in connection with his termination of employment, would result
in the imposition of an excise tax under Section 4999 of the Code, the Bank
will pay to Executive an additional cash payment (“Gross-up Payment”) in an
amount such that the after-tax proceeds of such Gross-up Payment (including any
income tax or excise tax on such Gross-up Payment) will be equal to the amount
of the excise tax.

 

IN WITNESS WHEREOF, the Parties, intending to be
legally bound hereby, have caused this Amendment to be duly executed in their
respective names or by their authorized representative, on the day and year
first above written.

 

 

	
  ATTEST:

  	
   

  	
  RIVERVIEW
  NATIONAL BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Robert M. Garst

  
	
   

  	
   

  	
   

  	
  Robert
  M. Garst

  
	
   

  	
   

  	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Kirk D. Fox

  
	
   

  	
   

  	
  Kirk
  D. FoxExhibit 10.1

 

FIFTH AMENDMENT TO CREDIT AGREEMENT

 

THIS
AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of November 9,
2009, by and between WILLDAN GROUP, INC., a Delaware corporation (“Borrower”),
and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”).

 

RECITALS

 

WHEREAS,
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”).

 

WHEREAS,
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.             Section 1.1.(a) is
hereby amended by deleting “January 1,2010” as the last day on which Bank
will make advances under the Line of Credit, and by substituting for said date “January 1,
2011,” with such change to be effective upon the execution and delivery to Bank
of a promissory note dated as of November 9, 2009 (which promissory note
shall replace and be deemed the Line of Credit Note defined in and made
pursuant to the Credit Agreement) and all other contracts, instruments and
documents required by Bank to evidence such change.

 

2.             Section 4.9. is hereby
deleted in its entirety, and the following substituted therefore:

 

“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. For the purposes of
calculating Tangible Net Worth, the impact of non-cash property lease
termination expense of up to $1,000,000.00 in the aggregate recorded during the
period from October 1, 2009 through December 31, 2010 will be
excluded from the covenant calculation.”

 

3.             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.

 

4.             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.

 

 

	
   

  	
  WELLS
  FARGO BANK,

  
	
  WILLDAN
  GROUP, INC.

  	
  NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Kimberly D. Gant

  	
   

  	
  By:

  	
  /s/
  Catherine Abe

  
	
   

  	
   

  	
  Catherine
  Abe

  
	
  Title:

  	
  Chief
  Financial Officer

  	
   

  	
   

  	
  Vice
  President

  

 

1Exhibit 10.2

 

	
  WELLS
  FARGO

  	
  REVOLVING LINE OF CREDIT NOTE

  

 

	
  $5,000,000.00

  	
  West Covina, California

  
	
   

  	
  November 9, 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 1, 3 or 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.

 

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.

 

1

 

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 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 December 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, or at Bank’s option upon the occurrence, and
during the continuance of an Event of Default, the outstanding principal
balance of this Note shall bear interest 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.

 

2

 

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, 2011.

 

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 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.

 

3

 

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.

 

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 D. Gant

  	
   

  
	
   

  
	
  Title:

  	
  Chief
  Financial Officer

  	
   

  

 

4

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