MEMBERSHIP INTEREST PURCHASE AGREEMENT among WILLDAN ENERGY SOLUTIONS, INC. WILLDAN GROUP, INC. and THE SHAREHOLDERS OF BURTON ENERGY GROUP, LLC. Dated as of May 4, 2026
Exhibit 2.2
MEMBERSHIP INTEREST PURCHASE AGREEMENT
among
WILLDAN ENERGY SOLUTIONS, INC.
and
THE SHAREHOLDERS OF ▇▇▇▇▇▇ ENERGY GROUP, LLC.
Dated as of
May 4, 2026
TABLE OF CONTENTS
Page
ii
iii
iv
SCHEDULE INDEX
Schedule 3.1Organization; Good Standing
Schedule 3.3Purchased Interests
Schedule 3.4(a)Conflicts
Schedule 3.4(b)Government Filings
Schedule 3.5(a)Leased Real Property
Schedule 3.5(c)Liens on Real Property
Schedule 3.6Title to Assets
Schedule 3.7Financial Statements
Schedule 3.8Receivables
Schedule 3.9(d)Withholding of Taxes
Schedule 3.9 (e)Matters Relating to Tax Periods
Schedule 3.9(i)Tax Deficiency
Schedule 3.9(l)Affiliated Group Tax Returns
Schedule 3.10Liabilities
Schedule 3.11Absence of Changes
Schedule 3.12Legal Proceedings
Schedule 3.13Compliance with Laws
Schedule 3.14(a)Contracts
Schedule 3.14(c)Contract Exceptions
Schedule 3.14(c)(vi)Contract Overruns
Schedule 3.14(d)Government Contracts
Schedule 3.15(a)Employee Benefit Plans
Schedule 3.15(b)Amendments to Employee Benefit Plans
Schedule 3.15(c)Employee Benefit Plan subject to Title IV or the Code
Schedule 3.15(d)Multi-Employer Plans
Schedule 3.15(g)Employee Benefit Plan Compliance with Law
Schedule 3.15(i)Prohibited Transactions
Schedule 3.15(n)Change of Control Payments
Schedule 3.15(t)Employees Absent from Active Employment
Schedule 3.15(u)COBRA Elections
Schedule 3.16(a)Labor Relations
Schedule 3.16(b)Terminating Employees
Schedule 3.17Employees and Contractors
Schedule 3.18(b)Insurance Policies
Schedule 3.18(c)Bonds
Schedule 3.19(a)Compliance with Environmental Laws
Schedule 3.19(d)Health and Safety and Environmental Events
Schedule 3.20Transactions with Affiliates
Schedule 3.21(a)Customers and Vendors
Schedule 3.22Product and Service Warranties
Schedule 3.23(a)Company Registered Intellectual Property
Schedule 3.23(e)Works of Original Authorship
Schedule 3.24(a)Company Proprietary Software and Company Licensed Software
Schedule 3.24(d)Source Code for Company Proprietary Software
Schedule 3.25Licenses
v
Schedule 3.26Bank Accounts and Powers of Attorney
Schedule 3.27Accounting Records
Schedule 3.28Brokers, Finders and Investment Bankers
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EXHIBIT INDEX
Exhibit 7.2(d)(2) - Form of Non-Competition Agreement for each shareholder
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MEMBERSHIP INTEREST PURCHASE AGREEMENT
This MEMBERSHIP INTEREST PURCHASE AGREEMENT (this “Agreement”), dated as of May 4, 2026, is made and entered into by and among (i) Willdan Energy Solutions, a California corporation (the “Purchaser”), a wholly-owned subsidiary of Willdan Group, Inc., a Delaware corporation (“Willdan”), (ii) Willdan, (iii) each of the holders of Membership Interests identified as such on the signature pages to this Agreement (each a “Seller” and, collectively, the “Sellers”), (iv) ▇▇▇▇▇▇ Energy Group, LLC, a Georgia limited liability company (the “Company”), and (v) [REDACTED], as Seller Representative (as defined in Section 9.12). The Purchaser, ▇▇▇▇▇▇▇, the Sellers, the Company and the Seller Representative are sometimes individually referred to herein as a “Party” and collectively as the “Parties.”
W I T N E S S E T H:
WHEREAS, the Company is a limited liability company duly formed and organized under the law of the State of Georgia, with all powers and authority to conduct its business as currently conducted;
WHEREAS, Sellers own 100% of the Membership Interests of the Company representing [REDACTED] Series A shares and [REDACTED] Series B shares (“Shares”) of the total outstanding Membership Interests (the “Purchased Interests”);
WHEREAS, the Purchaser desires to acquire from the Sellers, and Sellers desire to sell to the Purchaser, the Purchased Interests, on the terms and subject to the conditions set forth in this Agreement (the “Acquisition”); and
WHEREAS, the Parties desire to make and agree to certain representations, warranties, covenants and agreements in connection with the Acquisition, as set forth more fully herein.
NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements contained in this Agreement, and intending to be legally bound hereby, the Parties hereby agree as follows:
“Affiliate” of any specified Person means any other Person directly or indirectly Controlling or Controlled by or under direct or indirect common Control with such specified Person.
“Balance Sheet” has the meaning set forth in Section 3.7.
“Balance Sheet Date” has the meaning set forth in Section 3.7.
“Books and Records” means any books, records, files, research and production records, customer files, customer lists, customer product specifications, customer purchasing histories,
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distributor files, vendor files, vendor lists, advertising and marketing materials, sales materials, budgets, forecasts, ledgers, journals, reports, technical information, databases, or documents, information and files of any kind, regardless of whether any of the foregoing are stored or maintained in traditional paper format, by means of electronic, optical or magnetic media or devices, photographic or video images, or any other format or media.
“Business” means the business of the Company as of immediately prior to the Closing, including providing energy management consulting and solutions and project management services related to such energy management solutions to a wide array of industries including retail, hospitality, education, healthcare, manufacturing and distribution, financial services, and senior living and manufactured housing. Notwithstanding the foregoing, the term “Business” shall not be construed or interpreted to include, or to encompass in any respect, the industries in which the Company's customers operate. For the avoidance of doubt, the reference to such industries in the preceding sentence is solely descriptive of the customers to whom the Company provides its services and does not mean that the Company itself is engaged in, or that the "Business" includes, any such industry.
“Business Day” means any day except Saturday, Sunday or any day on which banks are generally not open for business in the city of Alpharetta, Georgia.
“CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq., any amendments thereto, any successor statutes and any regulations promulgated thereunder.
“Claims Period” means the period during which a claim for indemnification may be asserted hereunder by any Indemnified Party.
“Code” means the United States Internal Revenue Code of 1986, as amended.
“Company Ancillary Documents” means any certificate, agreement, document or other instrument, other than this Agreement, to be executed and delivered by the Company or the Sellers at Closing in connection with the transactions contemplated hereby, including the Acquisition.
“Company Intellectual Property” means any Intellectual Property that is owned by or licensed to the Company, including the Company Software.
“Company Licensed Software” means all Software (other than Company Proprietary Software) licensed to and used by the Company.
“Company Material Adverse Effect” means any fact, circumstance, event, change, effect or occurrence that, individually or in the aggregate, has had a material adverse effect on the assets, Liabilities, properties, operations, Business, or financial condition of the Company, considered as a whole; provided, however, that no facts, circumstances, events, changes, effects or occurrences resulting from, relating to or arising out of the following shall be deemed to be or constitute a Company Material Adverse Effect or shall be taken into account when determining whether there has, may, would or could have occurred a Company Material Adverse Effect: (a) the effect of any change generally affecting the industries in which the Company operates as of the date hereof (including general pricing changes), (b) the effect of any change in the economy or the financial or securities markets in the United States or elsewhere in the world, (c) the effect of any outbreak
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or escalation of hostilities, declared or undeclared acts of war, sabotage or terrorism, (d) any change in Laws or accounting rules or principles, (e) the execution and delivery of this Agreement or the announcement and performance hereunder (including any cancellations or delays in contract awards any impact on relationships with customers, subcontractors, suppliers or employees), (f) any acts or failure to take action, or such other events or circumstances to which Purchaser has consented or that are permitted, prohibited, or required by this Agreement, or (g) any damage, destruction, impairment, or other loss of or with respect to any asset to the extent covered by insurance, except in the cases of clauses (a), (b) or (c), to the extent the effect of any such changes disproportionately and materially impact the operations, Business or financial condition of the Company, considered as a whole, relative to other participants in the industry in which the Company operates.
“Company Proprietary Software” means all Software owned by the Company.
“Company Registered Intellectual Property” means all Registered Intellectual Property owned by or filed in the name of the Company.
“Company Software” means either the Company Licensed Software or the Company Proprietary Software.
“Contract” means any written or oral contract, agreement, arrangement, commitment, license, lease, easement, right of way, guaranty, distribution agreement, product swap agreement, customer contract, sales contract, supply agreement, or any other contract, agreement or arrangement of any kind, including all transferable rights under warranties and guarantees, express or implied, contained therein.
“Control” means, when used with respect to any specified Person, the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by Contract or otherwise. The terms “Controlling” and “Controlled” have correlative meanings.
“Customers” means all of the customers of the Company.
“Damages” means any damage, loss, Liability, assessment, ▇▇▇▇, fine, charge, claim, demand, action, suit, proceeding, payment, judgment, settlement, penalty, cost or expense, including reasonable expenses and attorneys’ fees and expenses in connection with investigating, defending, settling or satisfying any and all Proceedings, Litigation or Orders, and in seeking indemnification, compensation or reimbursement therefor.
“Employment Agreements” means any employment contract, consulting agreement, termination or severance agreement, change of control agreement, non-compete agreement, non-solicitation agreement, or any other agreement or understanding (written or oral) respecting the terms and conditions of employment or payment of compensation, or of a consulting or independent contractor relationship, in respect of any current or former officer, employee, consultant or independent contractor.
“Employment Laws” means all Laws in effect at or prior to Closing relating to employees and independent contractors and their employment, or rendition of services, including but not limited to health, labor, labor/management relations, occupational health and safety, pay equity,
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equal opportunity, discrimination, immigration, employment standards, benefits, workers’ compensation, wages, hours, collective bargaining, and the payment of social security and similar Taxes.
“Environmental Claims” means any complaint, summons, citation, notice, directive, Order, ruling, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter or other communication from any Governmental Entity or any third party involving actual, potential or alleged violations of or liability under Environmental Laws or Releases of Hazardous Substances, and any information request from a Governmental Entity issued pursuant to any Environmental Law.
“Environmental Law” means any Law relating to the regulation or protection of human health, safety or the environment or to emissions, discharges, releases or threatened releases of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances or wastes into the environment (including without limitation, ambient air, soil, surface water, ground water, wetlands, land or subsurface strata), or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants, chemicals or industrial, toxic or Hazardous Substances (including without limitation, CERCLA, RCRA, and rule or regulation promulgated by the United States Occupational Safety and Health Administration and equivalent or similar state, local or foreign law).
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and all rules and regulations promulgated thereunder.
“Financial Statements” has the meaning set forth in Section 3.7.
“Foreign Official” means any officer or employee of a foreign government or any department, agency or instrumentality thereof, or of a public international organization, or any person acting in an official capacity for or on behalf of any such government or department, agency or instrumentality, or for or on behalf of any such public international organization, or any political party or official thereof, or any candidate for political or political party office.
“Fraud” means an actual and intentional misrepresentation of a material fact constituting common law fraud under applicable Law, made by a party in the express representations and warranties set forth in this Agreement, with actual knowledge of its falsity and with the intent to induce another party to rely thereon, upon which such other party actually and justifiably relies to its detriment; provided, however, that (a) “Fraud” shall be limited solely to the actual (and not constructive, imputed, or collective) knowledge and intent of the individuals making the representation at issue, and (b) “Fraud” shall not include any claim based on negligence, recklessness, constructive fraud, equitable fraud, promissory fraud, or any other theory of fraud not requiring actual knowledge of falsity and intent to deceive.
“GAAP” means generally accepted accounting principles as applied in the United States of America.
“Government Bid” means any bid that if accepted or awarded would result in a contract or agreement with (a) any Governmental Entity, (b) any prime contractor to any Governmental Entity
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in its capacity as a prime contractor, or (c) any subcontractor with respect to any contract of the type described in clauses (a) and (b) above.
“Government Contract” means any contract or agreement between the Company and (a) any Governmental Entity, (b) any prime contractor to any Governmental Entity in its capacity as a prime contractor, or (c) any subcontractor with respect to any contract of the type described in clauses (a) and (b) above.
“Governmental Entity” means any federal, state or local or foreign government, any political subdivision thereof or any court, administrative or regulatory agency, department, instrumentality, body or commission or other governmental authority or agency, domestic or foreign.
“Hazardous Substances” means any wastes, substances, radiation, or materials (whether solids, liquids or gases): (a) which are hazardous, toxic, infectious, explosive, radioactive, carcinogenic, or mutagenic pursuant to any Environmental Law; (b) which are or become defined as “pollutants,” “contaminants,” “hazardous materials,” “hazardous wastes,” “hazardous substances,” “toxic substances,” “radioactive materials,” “solid wastes,” or other similar designations in, or otherwise subject to regulation under, any Environmental Law; (c) the presence of which on, under or emanating from the Leased Real Property would be subject to applicable statutory or common laws; (d) which contain, without limitation, polychlorinated biphenyls (PCBs), mold, methyl-tertiary butyl ether (MTBE), asbestos or asbestos-containing materials, lead-based paints, urea-formaldehyde foam insulation, or petroleum or petroleum products (including crude oil or any fraction thereof); or (e) which have been deemed to pose a hazard to human health, safety, natural resources, employees or the environment under any Environmental Law.
“Holdback Amount” has the meaning set forth in Section 2.2(a).
“Indebtedness” means, without duplication, with respect to the Company, the sum of (a) all obligations of the Company for borrowed money or issued in substitution for or exchange of indebtedness for borrowed money, including intercompany and shareholder indebtedness; (b) other indebtedness of the Company evidenced by notes, bonds, debentures or other debt securities; (c) indebtedness of the types described in clauses (a) and (b) guaranteed, directly or indirectly, in any manner by the Company through an agreement, contingent or otherwise, to supply funds to, or in any other manner invest in, the debtor, or to purchase indebtedness, primarily for the purpose of enabling the debtor to make payment of the indebtedness or to insure the owners of indebtedness against loss; (d) indebtedness for the deferred purchase price of property or services with respect to which the Company is liable, contingently or otherwise, other than ordinary course trade payables (and, for the avoidance of doubt, excluding (i) any equipment that is purchased by Company on behalf of customers as a service in the ordinary course of business that is not titled in the Company’s name, and (ii) any customer deposits, advance payments, or any deferred revenue or inventory relating to [REDACTED] and [REDACTED] contracts pertaining to EMS equipment, Mini-split equipment and project management fees on associated HVAC unit installations); (e) all obligations of the Company as lessee or lessees under finance leases (and, for the avoidance of doubt, excluding any operating lease obligations or right-of-use lease liabilities arising solely under ASC 842 or similar accounting standards); (f) all payment obligations under any interest rate swap agreements or interest rate hedge agreements to which the Company is party
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or by which the Company is otherwise bound; (g) any interest owed with respect to the indebtedness referred to above and prepayment premiums or fees related thereto; (h) any declared but unpaid dividends or distributions; (i) all obligations relating to employees or service providers that are accrued and payable as of the Closing Date (including personal leave, bonuses, commissions and severance obligations accrued as of the Closing Date), but excluding any obligations that arise or accrue after the Closing Date, whether or not attributable in whole or in part to a pre-Closing period; and (j) all obligations actually drawn or called under any letter of credit, banker's acceptance, guarantee, or surety arrangement; provided, however, that for the avoidance of doubt, any performance bond, bid bond, appeal bond or similar instrument that has not been drawn upon or called as of the Closing Date shall not constitute Indebtedness.
“Fundamental Purchaser Claims” means any claim by the Purchaser under Article VIII hereof for Purchaser Losses arising out of or relating to (a) a breach or inaccuracy of any representation or warranty contained in the first sentence in Section 3.1 (Organization), Section 3.2 (Authorization), Section 3.3 (Purchased Interests), Section 3.4(a)(i) (Absence of Restrictions and Conflicts), Section 4.1 (Authorization), or Section 4.3 (Ownership of Membership Interests), or (b) Fraud.
“Intellectual Property” means all intellectual property rights of the Company, including: (a) all United States and foreign patents and applications therefor and all reissues, divisions, renewals, extensions, provisionals, continuations and continuations-in-part thereof; (b) all inventions (whether patentable or not), invention disclosures, improvements, mask works, trade secrets, manufacturing processes, test and qualification processes, designs, drawings, schematics, proprietary information, know-how, technology, technical data and customer lists, and all documentation to the extent embodying any of the foregoing throughout the world; (c) all works of authorship (whether copyrightable or not), copyrights, copyright registrations and applications therefor throughout the world; (d) all industrial designs and any registrations and applications therefor throughout the world; (e) all Software; (f) all internet uniform resource locators, domain names, trade names, logos, slogans, designs, trade dress, common law trademarks and service marks, trademark and service mark and trade dress registrations and applications therefor throughout the world; (g) all databases and data collections and all rights therein throughout the world.
“Interim Balance Sheet” has the meaning set forth in section 3.7.
“Interim Balance Sheet Date” has the meaning set forth in section 3.7.
“Interim Financial Statements” has the meaning set forth in section 3.7.
“IRS” means the United States Internal Revenue Service.
“Knowledge of the Sellers” means the knowledge of each Seller, in each case, after (a) reasonable investigation of the Company’s Books and Records and (b) reasonable inquiry of any employees who would reasonably be expected to have knowledge of the event, condition, circumstance, act or other matter in question.
“Laws” means all statutes, rules, codes, regulations, restrictions, ordinances, Orders, rulings (including common law rulings), approvals, or awards issued by any Governmental Entity.
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“Leased Real Property” means those parcels of real property or portions thereof of which the Company is the lessee (together with those fixtures or improvements thereon that are included in the terms of the leases therefor).
“Liability” or “Liabilities” means any and all debts, liabilities, commitments, obligations, duties or responsibilities of any kind and description, whether absolute or contingent, accrued or fixed, monetary or non-monetary, direct or indirect, known or unknown, or matured or unmatured, or of any other nature.
“Licenses” means all notifications, licenses, permits, franchises, certificates, approvals, exemptions, classifications, registrations and other similar documents and authorizations issued by any Governmental Entity, and applications therefor.
“Liens” means all mortgages, liens, pledges, security interests, charges, claims, and encumbrances of any nature whatsoever.
“Litigation” means any litigation, legal action, arbitration, mediation, administrative or judicial proceeding, demand, or claim pending or, to the Knowledge of the Sellers, threatened, or, to the Knowledge of the Sellers, any investigation pending or threatened, against, affecting or brought by or against the Company, or any of the Company’s (i) assets or properties or (ii) present or former officers, directors, managers, employees or independent contractors, in each case in their capacities as such, in any jurisdiction, foreign or domestic.
“Maximum Earnout” has the meaning set forth in Section 2.5.
“Membership Interests” means, with respect to any Person, (a) capital stock, partnership interests, other equity interests, rights to profits or revenue and any other similar interest in such Person, (b) any security or other interest convertible into or exchangeable or exercisable for any of the foregoing, whether at the time of issuance or upon the passage of time or the occurrence of some future event, and (c) any warrant, option or other right (contingent or otherwise) to acquire any of the foregoing.
“Net Working Capital” means the Company’s current assets (including cash) less the Company’s current liabilities (excluding the current portion of any Indebtedness and any Transaction Expenses), in each case calculated in accordance with the Company’s historical accounting practices applied consistently with past practice, and excluding any deferred revenue or inventory relating to [REDACTED] and [REDACTED] contracts pertaining to EMS equipment, Mini-split equipment and project management fees on associated HVAC unit installations.
“Order” means any order, ruling, decision, verdict, decree, writ, subpoena, mandate, precept, command, directive, consent, approval, award, judgment, injunction, or other similar determination or finding by, before or under the supervision of any Governmental Entity, arbitrator or mediator.
“Ordinary Course” means the ordinary course of business consistent with past practice of the Company.
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“Permitted Liens” means (a) Liens for Taxes not yet due and payable or being contested in good faith, (b) Liens of landlords with respect to Leased Real Property, (c) Liens of carriers, warehousemen, mechanics, materialmen and repairmen incurred in the Ordinary Course and not yet delinquent, and (d) in the case of Leased Real Property, in addition to items (a), (b) and (c), zoning, building, or other restrictions, variances, covenants, rights of way, encumbrances, easements and other minor irregularities in title, none of which, individually or in the aggregate, interfere in any material respect with the present use of or occupancy of the affected parcel by the Company.
“Person” means, any individual, corporation, partnership, joint venture, limited liability company, trust, unincorporated organization or association or other similar entity, Governmental Entity or other legal entity.
“Purchaser Ancillary Documents” means any certificate, agreement, document or other instrument, other than this Agreement, to be executed and delivered by the Purchaser at Closing in connection with the transactions contemplated hereby, including the Acquisition.
“Purchaser Indemnified Parties” means the Purchaser and its Affiliates (which following the Closing, shall include the Company) and each of their respective officers and directors, and each of the successors and assigns of any of the foregoing.
“Purchaser Material Adverse Effect” means any fact, circumstance, event, change, effect or occurrence that, individually or in the aggregate, has had or has a material adverse effect on the Purchaser’s ability to consummate the Acquisition; provided, however, that no facts, circumstances, events, changes, effects or occurrences resulting from, relating to or arising out of the following shall be deemed to be or constitute a Purchaser Material Adverse Effect or shall be taken into account when determining whether there has, may, would or could have occurred a Purchaser Material Adverse Effect: (a) the effect of any change generally affecting the industries in which the Purchaser operate as of the date hereof (including general pricing changes), (b) the effect of any change in the economy or the financial or securities markets in the United States or elsewhere in the world, (c) the effect of any outbreak or escalation of hostilities, declared or undeclared acts of war, sabotage or terrorism, or (d) any change in Laws or accounting rules or principles, except in the cases of clauses (a), (b) or (c), to the extent the effect of any such changes disproportionately and materially impact the operations, business or financial condition of the Purchaser relative to other participants in the industries in which the Purchaser operates.
“R&W Insurance” means a Purchaser-side representations and warranties insurance policy, of which the premium will be paid 50% by the Purchaser and 50% by the Company and the Sellers, insuring the Purchaser and Willdan with respect to breaches of representations and warranties of the Sellers in this Agreement. Purchaser shall be solely responsible for any retention payments relating to claims made under the R&W Insurance policy.
“RCRA” means the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., and any successor statute, and any regulations promulgated thereunder.
“Registered Intellectual Property” means all United States and foreign: (a) patents and patent applications (including provisional applications); (b) registered trademarks and service marks, applications to register trademarks and service marks, registered and applications to register
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trade dress, intent-to-use trademark or service mark applications, or other registrations or applications for trademarks and service marks and trade dress; (c) registered copyrights and applications for copyright registration; and (d) domain name registrations.
“Release” means the presence, release, spill, emission, leaking, pulping, injection, deposit, disposal, discharge, dispersal, leaching or migration into the indoor or outdoor environment, including the movement of Hazardous Substances through ambient air, soil, surface water, ground water, wetlands, land or subsurface strata, and any exposure to Hazardous Substances.
“Representative” means, with respect to any Person, such Person’s equity holders, directors, members, managers, officers, employees, agents, consultants or Persons acting in a similar capacity.
“Restricted Period” has the meaning set forth in Section 6.9.
“Seller Indemnified Parties” means the Sellers and any of their respective heirs, executors, members, successors and assigns.
“Senior Creditor” means a syndicate of financial institutions with BMO ▇▇▇▇▇▇ Bank N.A. as the administrative agent under the Senior Financing Agreement, together with its successors and assigns.
“Senior Event of Default” means an “Event of Default” as defined in the Senior Financing Agreement.
“Senior Financing Agreement” means that certain Credit Agreement dated as September 29, 2023, among Willdan, as the Borrower, Purchaser as a Guarantor, the other guarantors and loan parties thereunder, and a syndicate of BMO ▇▇▇▇▇▇ Bank N.A., as the administrative agent, as the same may be amended, restated, supplemented or otherwise modified from time to time.
“Sharing Ratio” means, with respect to each Seller, the percentage set forth opposite such Seller’s name below, which corresponds to such Seller’s proportionate ownership of the Purchased Interests as of immediately prior to the Closing; provided that the Sharing Ratios of all Sellers shall aggregate to one hundred percent (100%): [REDACTED].: [REDACTED]%; [REDACTED]: [REDACTED] %; [REDACTED]: [REDACTED] %; [REDACTED]: [REDACTED] %; [REDACTED]: [REDACTED] %; [REDACTED]: [REDACTED] %.
“Software” means all computer software programs, together with any error corrections, updates, modifications or enhancements thereto, in both machine-readable form and human-readable form.
“Software Licensing” has the meaning set forth in Section 2.5(b).
“SOL Purchaser Claims” means any claim by the Purchaser under Article VIII for Purchaser Losses arising out of or relating to a breach or inaccuracy of any representation or warranty contained in Section 3.9 (Tax Returns; Taxes) or Section 3.15 (Company Employee Benefit Plans).
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“Tax” or “Taxes” means all federal, state, local and foreign taxes, assessments, charges, duties, fees, levies and other governmental charges, including income, franchise, stamp, capital stock, real property, personal property, withholding, employment, payroll, social security, social contribution, unemployment compensation, disability, transfer, sales, use, excise, gross receipts, value-added, premium, windfall profits, environmental, customs duty, profits, transaction, registration, alternative or add-on minimum and estimated taxes, composite taxes payable by the Company on behalf of shareholders, and all other taxes of any kind for which the Company has any liability imposed by any Governmental Entity, whether disputed or not, and any associated charges, interest, additions to tax, or penalties imposed by any Governmental Entity.
“Tax Return” means any report, return, declaration or other information return or other document (including schedules or any related or supporting information) required to be supplied to a Governmental Entity or other authority in connection with the determination, assessment or collection of any Tax or the administration of any Laws, regulations or administrative requirements relating to any Tax.
“Territory” means the United States of America..
“Trading Day” means any day on which the New York Stock Exchange (or such other national securities exchange or trading market on which shares of Willdan Common Stock are then listed or traded) is open for the transaction of business and shares of Willdan Common Stock are traded thereon, other than a day on which trading in shares of Willdan Common Stock is scheduled to close prior to its regular weekday closing time.
“Transaction Expenses” means, without duplication, to the extent unpaid as of the Closing, the aggregate amount of Liabilities payable by or on behalf of the Company and/or any Seller for which the Company or the Purchaser could become liable at or after the Closing in connection with the negotiation, preparation and consummation of the transactions contemplated by this Agreement, including: (a) any legal, accounting, financial advisory and other third party advisory, brokerage, or consulting fees and other expenses incurred by a Party in connection with the transactions contemplated by this Agreement and other related matters; (b) the amount of (i) transaction bonuses, or change of control payments, that were (x) authorized or approved in writing by the Sellers prior to the Closing Date, (y) set forth on a schedule delivered to Purchaser at or prior to Closing, and (z) solely attributable to pre-Closing obligations of the Company, and (ii) the employer's share of any employment, payroll or social security Taxes solely attributable to the amounts described in clause (b)(i) above; provided, however, that Transaction Expenses shall expressly exclude, and no Seller shall have any liability for: (A) any retention payments for the R&W Insurance, incentive compensation, or other compensatory arrangements initiated, imposed, or required by Purchaser or any of its Affiliates on or after the Closing Date, (B) any payments attributable to post-Closing events or decisions made by Purchaser or any of its Affiliates, (C) any employer-side payroll, employment or social security Taxes arising from or attributable to any compensation arrangement established or modified by Purchaser or any of its Affiliates after the Closing Date, and (D) the R&W Insurance premium and associated fees and costs, which shall be allocated between the Parties as set forth in the definition of R&W Insurance and shall not reduce the amount payable to Sellers hereunder; and (c) any fees and expenses incurred in connection with obtaining any third party consents required in connection with the Acquisition solely as a
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result of actions taken or obligations incurred by the Sellers or the Company prior to the Closing Date.
“Transfer Taxes” means any sales, use, stock transfer, real property transfer, real property gains, transfer, stamp, registration, documentary, recording or similar Taxes, including all interest, additions, surcharges, fees or penalties related thereto, arising out of or incurred in connection with the transactions contemplated by this Agreement and the other Company Ancillary Documents.
“Treasury Regulations” means any regulations promulgated under the Code.
“Vendors” means the top twenty (20) vendors, suppliers, materialmen and other subcontractors of the Company in terms of amounts paid to such Vendors during the Company’s fiscal year ended 2025 and the four-month period ended April 30, 2026.
“Willdan” has the meaning set forth in the Preamble.
TermSection
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Accountants2.4(d)
AcquisitionRecitals
AgreementPreamble
Causes of Action6.5(a)
Certificates2.3(a)
Claim Notice8.3(a)
Closing NWC2.4(a)
COBRA3.15(q)
CompanyPreamble
Company Contracts3.14(a)
Continuing Employee6.6
Deductible8.5
Direct Claim8.3(a)
Dispute Period8.3(b)
Earn-Out Disagreement2.5(g)
Earn-Out Financial Statement2.5(g)
Earn-Out Payment2.5(a)
Earn-Out Period2.5(a)
Earn-Out Resolution Discussions2.5(i)
Employee Benefit Plans3.15(a)
ERISA Affiliate3.15(a)
ERISA Plans3.15(a)
Final Statement2.4(b)
Final Statement Disagreement2.4(c)
Indemnification Cap8.5
Indemnification Claims8.3(a)
Indemnified Party8.3
Indemnifying Party8.3
Initial Purchase Price2.2(a)
Initial Purchase Price Adjustment2.4(a)
Leases3.5(a)
Licensed Professionals3.13(a)
PartiesPreamble
PartyPreamble
Post-Closing Tax Period3.9(e)
Pre-Closing Tax Period3.9(e)
Proceeding8.3(a)
Purchased InterestsRecitals
Purchase Price2.2(b)
PurchaserPreamble
Purchaser Losses8.1
Purchaser Plan6.6(b)
Released Parties6.5(a)
Releasing Parties6.5(a)
SellerPreamble
Seller Agreements7.2(d)
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Seller Representative9.12
Settlement8.3(b)
Straddle Period6.3(b)
Target NWC2.4(a)
Third Party Claim8.3(a)]
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(a)With respect to the period of the first twenty-four months following the Closing (the “Earn-Out Period”), the Purchaser will make an earn-out payment based upon the Company’s earnings before interest, taxes, depreciation and amortization (“EBITDA”) during the first and second twelve-month periods comprising the Earn-Out Period (each, an “Earn-Out Payment”). For purposes of determining the Earn-Out Payments, EBITDA for any twelve-month period is defined as earnings from operations of the Company during such twelve-month period determined in accordance with GAAP, as adjusted for interest, income taxes, depreciation and amortization allocable to such twelve-month period, and further adjusted by adding back each of the following items to the extent deducted in computing such earnings from operations: (ii) any stock-based compensation expense, equity award amortization, or similar non-cash charges attributable to equity grants or awards made by Purchaser or any of its Affiliates to employees or service providers of the Company after the Closing Date;; (iv) any overhead allocations, management fees, intercompany charges, or other amounts charged or allocated to the Company by Purchaser or any of its Affiliates after the Closing, to the extent such charges would not have been borne by the Company in the Ordinary Course on a standalone basis; (v) any charges, expenses, or write-offs resulting from any change in accounting methods, policies, or principles imposed on the Company by Purchaser or any of its Affiliates after the Closing that differ fromGAAP; and (vi) any non-cash impairment charges, write-downs of goodwill or other intangible assets, or purchase accounting adjustments arising from or related to the Acquisition (collectively, the “EBITDA Add-Backs”). For the avoidance of doubt, no EBITDA Add-Back shall result in any item being added back more than once. The calculation of the Company’s EBITDA will include any charges borne by the Purchaser from Persons that are not Affiliates of Purchaser solely for the benefit of the Company that otherwise would have been incurred directly by the Company in the Ordinary Course regardless of the sale of the Company contemplated hereby.
(b)If the Company generates EBITDA of or exceeding $[REDACTED] (the “Year 1 EBITDA Target”) during the twelve-month period beginning on the Closing Date
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and ending on the day prior to the first anniversary of the Closing Date (such period, “Year 1”), the Purchaser will make an Earn-Out Payment of $6,000,000. For EBITDA of less than $[REDACTED] but more than $[REDACTED] for Year 1, the amount of the Earn-Out Payment required to be paid in respect of Year 1 will be pro-rated based upon the quotient of (i) the amount by which the Company’s EBITDA exceeds $[REDACTED], divided by (ii) $[REDACTED], multiplied by (iii) $[REDACTED]. No Earn-Out Payment is payable for Year 1 if the Company’s EBITDA is less than $[REDACTED]. The Earn-Out Payment is to be paid in cash to the Seller Representative for distribution to the Sellers under Section 2.2(b) within eighty-five (85) days after the first anniversary of the Closing Date, or ten (10) days after the resolution of an Earn-Out Disagreement.
. Earn-Out Example #1: if the Company’s EBITDA for Year 1 is $[REDACTED], the Earn-Out Payment would be $[REDACTED] derived as [REDACTED]% of the $[REDACTED] total available for that period (([REDACTED]/ [REDACTED]) x [REDACTED]).
Earn-Out Example #2: if the Company’s EBITDA for Year 1 is $[REDACTED], the Earn-Out Payment for Year 1 would be [REDACTED]% of the $[REDACTED] total available for that period,
(c)If the Company generates EBITDA of or exceeding $[REDACTED] (the “Year 2 EBITDA Target”) during Year 2, the Purchaser will make an Earn-Out Payment of $[REDACTED]. For EBITDA of less than $[REDACTED] but more than $[REDACTED] for Year 2, the Earn-Out Payment will be pro-rated based upon the quotient of (i) the amount by which the Company’s EBITDA for Year 2 exceeds $[REDACTED], divided by (ii) $[REDACTED], multiplied by (iii) the maximum Earn-Out Payment available for Year 2. No Earn-Out Payment is payable for Year 2 if the Company’s EBITDA for Year 2 is less than $[REDACTED]. The Earn-Out Payment is to be paid in cash to the Seller Representative for distribution to the Sellers under Section 2.2(b) within eighty-five (85) days after the second anniversary of the Closing Date, or ten (10) days after the resolution of an Earn-Out Disagreement.
Year 2 Example #1: if the Company’s EBITDA for Year 2 is $[REDACTED], the Earn-Out Payment earned in Year 2 would be $[REDACTED], representing [REDACTED]% of the $[REDACTED] maximum Earn-Out Payment available for that period (($[REDACTED] Actual EBITDA in excess of $[REDACTED] threshold)/ $[REDACTED] EBITDA earn out range ($[REDACTED] target less $[REDACTED] minimum) x $[REDACTED]).
Year 2 Example #2: if the Company’s EBITDA for Year 2, is $[REDACTED], as such EBITDA exceeds the Year 2 EBITDA Target by $[REDACTED] ($[REDACTED] – $[REDACTED]). The Earn-Out Payment earned in Year 2 would be the $[REDACTED] maximum Earn-Out Payment available for that period.
(d)The financial statement showing the Company’s EBITDA for the Earn-Out Period (the “Earn-Out Financial Statement”) shall be prepared by the Purchaser in accordance with GAAP and delivered to the Seller Representative no later than forty-five
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(45) days following the end of the Earn-Out Period. Unless the Seller Representative shall notify the Purchaser in writing, not later than thirty (30) days from the Seller Representative’s receipt of the Earn-Out Financial Statement, of a disagreement with the Earn-Out Financial Statement (an “Earn-Out Disagreement”), the Earn-Out Financial Statement shall be final and binding upon the parties hereto. Unless there is an Earn-Out Disagreement (which shall be resolved in accordance with subparagraph (e) below), the Purchaser shall, within ten (10) days following the acceptance or deemed acceptance by the Seller Representative of the Earn-Out Financial Statement, pay the appropriate Earn-Out Payment to the Seller Representative in cash via wire transfer of immediately available funds for appropriate distribution under Sections 2.2(b) and (c). If there is an Earn-Out Disagreement, the amount of the Earn-Out Payment not in dispute shall be paid pursuant to the immediately preceding sentence.
(e) Notice of Earn-Out Disagreement shall specify all items as to which there is an Earn-Out Disagreement, including the amount, and provide an explanation of the basis for such Earn-Out Disagreement; provided, however, that the Seller Representative shall not be precluded from raising additional points of disagreement or providing additional explanations in the subsequent discussions and arbitration discussed in subparagraph (i) below. The Seller Representative’s failure to timely notify the Purchaser in writing of the existence of an Earn-Out Disagreement shall be deemed, for all purposes, to be the Seller Representative’s acceptance of the Earn-Out Financial Statement. In the event and to the extent that the Seller Representative shall timely notify the Purchaser in writing, as provided in subparagraph (d), of an Earn-Out Disagreement, the Parties hereto shall attempt, in good faith, to resolve such Earn-Out Disagreement (“Earn-Out Resolution Discussions”). In the event that the Parties are unable to resolve such Earn-Out Disagreement within twenty (20) Business Days after the date of receipt by the Purchaser of notice from the Seller Representative of the Earn-Out Disagreement, the Purchaser and the Seller Representative shall, within ten (10) Business Days, submit to the Accountants its or his proposal to settle the Earn-Out Disagreement. Further, the Parties shall submit to the Accountants all relevant financial data, and the Earn-Out Disagreement shall be submitted for final and binding arbitration and resolution by the Accountants. In resolving the Earn-Out Disagreement, the Accountants shall only consider those items or amounts in the Earn-Out Financial Statement as to which the Parties have continued to disagree after the Earn-Out Resolution Discussions. After completing their review of the Earn-Out Disagreement, the Accountants shall resolve each item in dispute and confirm their conclusion in writing to the Seller Representative and the Purchaser. The Parties shall instruct the Accountants to deliver their written conclusion to the Purchaser and the Seller Representative no later than thirty (30) days following the conclusion of the presentation of the Purchaser’s and the Seller Representative’s respective proposals on the Earn-Out Disagreement to the Accountants. The decision of the Accountants shall be final and binding upon the parties hereto for all purposes and enforceable in any court of competent jurisdiction. Within three (3) days following the decision of the Accountants, the Purchaser shall make the required payment in cash to the Seller Representative for appropriate distribution, via wire transfer of immediately available funds. The fees and costs of the Accountants, if any, in connection with such arbitration shall be borne based on the inverse of the percentage that the Accountants’ determination bears to the total amount of the total items in dispute as originally submitted to the Accountants. For example, should the items
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in dispute total in amount to $1,000 and the Accountants awards $600 in favor of Sellers, 60% of the costs of its review would be borne by the Purchaser and 40% of the costs would be borne by Sellers.
(f) The Purchaser will make the work papers and back-up materials used in preparing the Earn-Out Financial Statements, and the books, records and financial staff of the Purchaser and the Company, available to the Seller Representative and his accountants and other representatives at reasonable times and upon reasonable notice at any time during (A) the preparation by the Purchaser of the Earn-Out Statement, (B) the review by the Seller Representative of the Earn-Out Statement, and (C) the resolution by the Parties of any objections thereto.
(g)Until the expiration of the Earn-Out Period, except as consented to in writing by the Seller Representative, the Purchaser shall:
(i)conduct the operations of the Company in the usual and Ordinary Course to the extent such conduct is in compliance with the Purchaser’s operating policies (copies of which have been provided to Seller Representative) and take no action or make any omission intended to, or that would knowingly result in (A) a reduction in EBITDA below that which would have been achieved if such action had not been taken, or (B) a material increase in costs or expenses allocated to the Company that is not consistent with the Ordinary Course and is intended to, reduce the Company's EBITDA below that which would have been achieved if such action had not been taken;
(ii) use best efforts to maintain the relations and good will with suppliers, customers, landlords, creditors, employees, agents and others having business relationships with Company as of the Closing Date and during the Earn-Out Period;
(iii)maintain a financial reporting system that will separately account forEBITDA, and allow Seller Representative reasonable access to such system from time to time during the Earn-Out Period;
(iv)make reasonable commercial efforts to ensure that the Company maintains the services of any technical and management employees who are essential to perform any then current Contracts of the Company;
(v)not terminate, transfer, assign or novate to any Person any then current Contracts of the Company or those executed within the Earn-Out Period without first mutually agreeing to make a pro-rata adjustment of the Earn-Out targets;
(vi) regularly consult with and consider in good faith the recommendations and requests of the Seller Representative regarding management of then current projects, and bidding on new projects proposed to be undertaken by the Company;
(vii)consult with and consider in good faith the recommendations and requests of the Seller Representative regarding the budget for the Company during the Earn-Out Period;
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(viii)consult with and consider in good faith the recommendations and requests of the Seller Representative regarding employees’ salaries and bonuses and office openings and closures; and
(ix) provide as appropriate in the then current circumstances reasonable support to the Company as may be reasonably requested by the Seller Representative from time to time, in the Ordinary Course, including, without limitation, working capital, technical support, equipment, office space, supplies and assistance with recruiting and other corporate functions; provided, however, that any direct costs mutually agreed to be borne by the Purchaser solely for the benefit of the Company will be accrued for purposes of determining the Earn-Out Payment.
(h)Notwithstanding anything to the contrary in this Agreement, Purchaser shall not be obligated to pay all or any portion of the Earn-Out Payment on the date such payment is otherwise due hereunder if and to the extent that the payment of such amount would result in a Senior Event of Default or a Senior Event of Default exists at the time of such contemplated payment. Purchaser shall use commercially reasonable good faith efforts to avoid the occurrence of, and to cure, any Senior Event of Default that would prevent or delay payment of any Earn-Out Payment. Any Earn-Out Payment deferred pursuant to this Section 2.5(h) shall accrue interest at the rate of prime plus 3% per annum from the date such payment was originally due until the date of actual payment. Purchaser shall pay any amount it is obligated to pay under this section, together with all accrued interest thereon, as soon as the restrictions set forth in the first sentence of this Section 2.5(h) no longer exist. Sellers acknowledge and agree that any failure by Purchaser to pay all or any portion of the Earn-Out Payment on the date otherwise due hereunder solely by virtue of this section shall not constitute a default under or a breach of this Agreement for any reason, provided that Purchaser is in compliance with its obligations under this Section 2.5(h). The Senior Creditor shall be an express third-party beneficiary with respect to this section.
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The Sellers, jointly and severally, hereby represent and warrant to the Purchaser, as of the Closing Date, the following:
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issued. Schedule 3.3 accurately and completely sets forth the number of all Purchased Interests that are authorized and outstanding, and the holder thereof. Except as set forth in Schedule 3.3, (a) there are no outstanding options, warrants, rights, calls, conversion rights, rights of exchange, subscriptions, or convertible or exchangeable securities relating to the Purchased Interests or other equity interests of the Company; (b) there are no distributions that have accrued but are unpaid on the Purchased Interests or other equity interests of the Company; (c) there are no outstanding Contracts of the Company or any Seller to purchase or otherwise acquire any outstanding Purchased Interests or other equity interests of the Company, or securities or obligations of any kind convertible into any Purchased Interests or other equity interests of the Company; and (d) there are no Contracts between any Seller and any other Person relating to the management of the Company or any equity interest of the Company.
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assets. Except as disclosed in Schedule 3.6 or incurred in the Ordinary Course, since January 1, 2025, the Company has not sold, transferred or disposed of any material assets. The assets and properties of the Company constitute all of the material assets, services, properties, goodwill and rights (including Company Intellectual Property rights) used in the business of the Company as currently conducted. All of the Business assets and properties located at the Leased Real Property are owned or validly leased by the Company, as applicable. Except as set forth in Schedule 3.6, no asset or property used in, or held for use in, the Business is leased from or owned by any Seller or an Affiliate of any Seller (other than the Company).
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writing to initiate, a dispute regarding the collectability of any accounts receivable. All billed and unbilled accounts receivable reflected in the Final Statement, net of the associated allowance for doubtful accounts, and, to the Knowledge of the Sellers, are fully collectible within three hundred and sixty-five (365) days after the date hereof and payable at their face amounts. The Company has never factored any of its respective accounts receivable. No account receivable set forth on Schedule 3.8 is with a party with whom the Company has had or settled a dispute regarding the collection of any past account receivable.
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(o)To the Knowledge of the Sellers, the Company is not under examination by any taxing authority.
(p) The Company is, and since formation has been, properly classified as a partnership for U.S. federal and applicable state and local income tax purposes, and has not made or been subject to any election to be treated as a corporation.
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which is not fully covered by insurance policies. There is no Order or other determination of an arbitrator or Governmental Entity specifically applicable to the Company, or any of the Company’s assets or properties. There is no Litigation relating to alleged unlawful discrimination or sexual harassment or any other Litigation that if determined adversely to the Company would be deemed a violation of Section 3.13 hereof. There is no Litigation which seeks to prevent, or seeks Damages in connection with, consummation of the Acquisition or the other transactions contemplated hereby or by the Company Ancillary Documents.
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applicable Laws. The Company is not subject to any pending claim for overdue overtime compensation due to any employee, and to the Knowledge of the Company, no such claim has been threatened. No consent of any labor union is required to consummate the transactions contemplated by this Agreement and the Company Ancillary Documents. Except as set forth on Schedule 3.16(b), the Sellers have no Knowledge to the effect that any current key employee, consultant or independent contractor has any immediate plans to terminate or materially alter its relations with the Company, either as a result of the transactions contemplated hereby or otherwise.
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employees of the Company whom such supervisory employees directly or indirectly supervise.
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Each Seller, severally and jointly, hereby represents and warrants to the Purchaser, as of the Closing Date, the following:
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The Purchaser hereby represents and warrants to the Sellers, as of the Closing Date, the following:
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prior to the Closing (each, a “Continuing Employee”) on an at-will basis or pursuant to the terms of any existing employment agreement in effect on the Closing Date, as applicable.
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respective representatives) shall, only to the extent practicable and permitted by applicable Law, promptly notify Purchaser of such required disclosure and shall disclose only that portion of such information which Seller (or other applicable disclosing party) is advised by its counsel (which can include in-house counsel) is legally required to be disclosed, provided that Seller, as the case may be, shall use reasonable best efforts to obtain an appropriate protective order or other reasonable assurance that confidential treatment will be accorded such information.
Section 6.8. Post-Closing Consents. The Parties acknowledge and agree that certain consents required in connection with the consummation of the Acquisition have not been obtained as of the Closing Date and are identified on Schedule 3.4(a) (collectively, the "Scheduled Consents"). ▇▇▇▇▇▇▇▇▇ has elected to consummate the Acquisition notwithstanding the failure to obtain such Scheduled Consents prior to Closing. Accordingly: (a) neither the Company nor any Seller shall be deemed to be in breach of any representation, warranty, covenant or agreement set forth in this Agreement, or any Company Ancillary Document, by reason of the failure to obtain any Scheduled Consent prior to or following the Closing; (b) no Purchaser Indemnified Party shall have any right to indemnification, contribution, set-off or any other claim for Damages under this Agreement or otherwise against any Seller or the Company arising from or relating to the failure to obtain any Scheduled Consent, whether before or after the Closing; (c) by executing this Agreement, Purchaser irrevocably acknowledges and agrees that it has assumed the risk associated with the failure to obtain any Scheduled Consent and has waived any right to assert any claim against the Sellers or the Company on account thereof; and (d) following the Closing, each of Purchaser and the Company shall use commercially reasonable efforts to seek and obtain, as promptly as practicable, each Scheduled Consent that remains outstanding as of the Closing Date, and the Sellers shall cooperate reasonably with such efforts at no out-of-pocket cost or expense to the Sellers.
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The Damages of the Purchaser Indemnified Parties described in this Section 8.1 as to which the Purchaser Indemnified Parties are entitled to indemnification are collectively referred to as “Purchaser Losses.” Each Seller’s liability with respect to Purchaser Losses under Section 8.1(a) and Section 8.1(b) shall be several and not joint, and shall be limited to such Seller’s pro rata share of such Purchaser Losses based on such Seller’s Sharing Ratio; provided, however, that (i) each Seller’s individual liability for Purchaser Losses arising from a breach or inaccuracy of such Seller’s own representations and warranties in Article IV or a breach of such Seller’s own covenants and agreements hereunder shall be borne solely by such Seller; and (ii) any Seller whose Sharing Ratio is equal to or less than 10% shall have no liability under Section 8.1 other than for (x) Purchaser Losses arising from a breach or inaccuracy of such Seller’s own representations and warranties in Article IV, (y) a breach of such Seller's own individual covenants hereunder, or (z) such Seller’s Sharing Ratio percentage of any Sales Tax imposed on the Company relating to any pre-Closing period.
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The Claims Period for the covenants, agreements and undertakings set forth in Section 6.1 (Tax Matters) shall survive the Closing until the date that thirty (30) days following the longest applicable statute of limitations (including any extension thereof agreed to by the Purchaser and the Seller Representative) applicable thereto.
No claim or cause of action for indemnification under this Article VIII may be made following the expiration of the applicable Claims Period; it being understood that in the event notice of any claim for indemnification under this Article VIII shall have been given within the applicable Claims Period, the representations, warranties, covenants or obligations that are the subject of such indemnification claim shall survive with respect to such indemnification claim until such time as such claim is fully and finally resolved, including by final non-appealable Order of a court of competent jurisdiction, even if the date of such full and final resolution occurs after the applicable Claims Period. Except with respect to Fundamental Purchaser Claims and SOL Purchaser Claims, for purposes of determining the amount of Damages to which an Indemnified Party may be entitled to recover under this Article VIII and for purposes of determining whether or not an Indemnified Party is entitled to indemnification pursuant to this Article VIII, each of the representations and warranties that contains any “Material Adverse Effect,” “material” or similar materiality qualifications shall be read as though such qualifications were not contained therein.
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entitled to indemnification for all Purchaser Losses arising under Section 8.1(a) in excess of the Deductible, subject to the other requirements of Section 8.1; provided, that in no event shall the aggregate amount of indemnification under Section 8.1(a) owed to the Purchaser Indemnified Parties exceed $[REDACTED] (the “Indemnification Cap”), it being the intent of the Parties that claims for Purchaser Losses arising from breaches of representations and warranties shall be made primarily against the R&W Insurance policy except in tax matters, and cases of Fraud. Notwithstanding the foregoing, in no event shall (i) the Deductible apply to any Fundamental Purchaser Claim or any SOL Purchaser Claim and (ii) the Indemnification Cap apply to any claims resulting or arising from Fraud.
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entitled to recover more than once for the same Damages, and the amount of any Damages recoverable by an Indemnified Party under this Article VIII shall be calculated net of (A) any amounts actually recovered by the Indemnified Party under any insurance policy (including the R&W Insurance), net of all reasonable costs of recovery and any resulting increase in insurance premiums directly attributable to such claim, (B) any indemnification, contribution or other payment actually received by the Indemnified Party from any third party with respect to such Damages, and (C) any Tax benefit actually realized by the Indemnified Party as a result of or arising from the facts or circumstances giving rise to such Damages or the receipt of any indemnification payment, in each case in the year in which the Damages are incurred or the two immediately succeeding taxable years. No Indemnifying Party shall have any liability under this Article VIII for any special, consequential, incidental, indirect, punitive, or exemplary Damages, or Damages in the nature of lost profits, loss of business opportunity, or diminution in value (other than diminution in value of the Purchased Interests to the extent directly caused by a breach of a representation or warranty), except to the extent such Damages are actually awarded to a third party in connection with a Third Party Claim.
To the PurchaserWilldan Energy Solutions
and after the Closing2401 ▇. ▇▇▇▇▇▇▇ ▇▇▇. Suite 300
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to the Company:Anaheim, CA 92806
Attn: ▇▇▇▇ ▇▇▇▇▇▇
Email: [REDACTED]
with a copy to (which shallWilldan Group Inc.
not constitute notice):▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇. Suite 300
Anaheim, CA 92806
Attn: ▇▇▇▇▇ ▇▇▇▇
Email: [REDACTED]
To the Seller Representative andAs set forth on the signature pages hereto
the Sellers:
with a copy to (which shall
not constitute notice):
[REDACTED]
or to such other representative or at such other address as such Person may furnish to the other Party in writing.
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resorting to litigation. Unless the Parties agree otherwise in writing, the mediation will be conducted through the City and County of Dallas, Texas office of JAMS. A demand for mediation shall be served in writing on the other Party or Parties to this Agreement within a reasonable time after the dispute has arisen. A Party may file a legal proceeding in order to preserve the Party’s rights with respect to the running of any statutes of limitations without violating the requirement of mediation, provided that mediation is commenced promptly and before the incurrence of significant legal fees or the undertaking of any discovery in connection with the legal proceeding. A dispute not resolved within ninety (90) days after submission to mediation shall be resolved by litigation. Each Party:
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proof of this Agreement or the terms hereof to produce or account for more than one of such counterparts. This Agreement may be executed and delivered by facsimile or other electronic transmission.
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[Signature Pages Follow]
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date first above written.
THE PURCHASER:
WILLDAN ENERGY SOLUTIONS
By:
Name: ▇▇▇▇ ▇▇▇▇▇▇
Title: President and CEO
WILLDAN
By: ______________________________________
Name: ▇▇▇▇ ▇▇▇▇▇▇
Title: President and CEO
SIGNATURE PAGE TO MEMBER INTEREST PURCHASE AGREEMENT
SELLER REPRESENTATIVE:
By:[REDACTED]
Address:
Email:
SELLERS:
[REDACTED]
By:[REDACTED], President
Address:
Email:
[REDACTED]
By:[REDACTED], President
Address:
Email:
SIGNATURE PAGE TO MEMBERSHIP INTEREST PURCHASE AGREEMENT
By: [REDACTED]
Address:
Email:
__________________________________________
By: [REDACTED]
Address:
Email:
__________________________________________
By: [REDACTED]
Address:
Email:
By: [REDACTED]
Address:
Email:
SIGNATURE PAGE TO MEMBERSHIP INTEREST PURCHASE AGREEMENT
[REDACTED]
By:________________________, Trustee
Address:
Email:
SIGNATURE PAGE TO MEMBERSHIP INTEREST PURCHASE AGREEMENT
