Exhibit 10.3



MODTECH HOLDINGS, INC.



1999 NONSTATUTORY STOCK OPTION PLAN



1. Purpose. The purpose of this Plan is to provide incentives to attract, retain and motivate eligible persons whose present and potential
contributions are important to the success of the Company, its Parent and Subsidiaries, by offering them an opportunity to participate in the Companys future performance through awards of Options. Capitalized terms not defined in the text are
defined in Section 19.



2. Shares Subject to the Plan



2.1 Number of Shares Available. Subject to Sections
2.2 and 14, (a) the total number of Shares reserved and available for grant and issuance pursuant to this Plan will be 1,450,0001Shares, and (b) Shares that are subject to issuance upon exercise of an Option but cease to be subject to such Option for any reason other than exercise of such Option will again be available for grant and issuance in connection
with future Awards under this Plan. At all times the Company shall reserve and keep available a sufficient number of Shares as shall be required to satisfy the requirements of all outstanding Options granted under this Plan.



2.2 Adjustment of Shares. In the event that the number of outstanding
Shares is changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the Company without consideration, then (a) the number of Shares
reserved for issuance under this Plan, and (b) the Exercise Prices of and number of Shares subject to outstanding Options will be proportionately adjusted, subject to any required action by the Board or the stockholders of the Company and compliance
with applicable securities laws; provide, however, that fractions of a Share will not be issued but will either be replaced by a cash payment equal to the Fair Market Value of such fraction of a Share or will be rounded up to the nearest whole
Share, as determined by the Committee.

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|1 | Increased from 1,250,000 to 1,450,000 in 2002
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3. Eligibility. Awards may be granted to employees, officers, directors, consultants, independent
contractors and advisors of the Company or any Parent or Subsidiary of the Company; provided such consultants, contractors, and advisors render bona fide services not in connection with the offer and sale of securities in a capital raising
transaction.



4. Administration.



4.1 Committee Authority. This Plan will be administered by the
Committee or by the Board acting as the Committee. Subject to the general purposes, terms and conditions of this Plan, and to the direction of the Board, the Committee will have full power to implement and carry out this Plan. Without limitation,
the Committee will have the authority to:



| | (a) | construe and interpret this Plan, any Award Agreement and any other agreement or document executed pursuant to this Plan;
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| | (b) | prescribe, amend and rescind rules and regulations relating to this Plan;
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| | (c) | select persons to receive Awards;
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| | (d) | determine the form and terms of Awards;
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| | (e) | grant waivers of Plan or Award conditions;
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| | (f) | determine the vesting and exercisability of Awards;
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| | (g) | correct any defect, supply any omission or reconcile any inconsistency in this Plan, any Award or any Award Agreement; and
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| | (h) | make all other determinations necessary or advisable for the administration of this Plan.
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4.2 Discretion. Any determination made by the Board or Committee with respect to any Award will be
made in its sole discretion at the time of grant of the Award or, unless in contravention of any express term of this Plan or Award, at any later time, and such determination will be final and binding on the Company and on all persons having an
interest in any Award under this Plan.



5. Options. All
Options granted will be nonstatutory stock options, which are options not intended to satisfy the requirements of incentive stock options under Section 422 of the Code, or comply with the requirements for employee stock purchase plans under Section
423 of the Code. No other form of Award may be made under this Plan. The Committee will have the discretion to determine, the number of Shares subject to the Option, the Exercise Price of the Option, the period during which the Option may be
exercised, and all other terms and conditions of the Option, subject to the following:



5.1 Form of Option Grant. Each Option granted under this Plan will be evidenced by a written Award Agreement, which will be in such form and contain such provisions (which need not be the same for each
Participant) as the Committee may from time to time approve, and which will comply with and be subject to the terms and conditions of this Plan.



5.2 Date of Grant. The date of grant of an Option will be the date on which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee. The Award Agreement and a copy of this Plan will be delivered to the Participant within a reasonable time after the granting of the Option.



5.3 Exercise Period. Options will be exercisable within the times or upon the events determined by the Committee as
set forth in the Award Agreement governing such Option. The Committee may provide for the exercise of Options to become exercisable at one time or from time to time, periodically or otherwise, in such number of Shares or percentage of Shares as the
Committee determines.



5.4 Exercise Price. The Exercise
Price of an Option will be determined by the Committee when the Option is granted and may be not less than 100% of the Fair Market Value of the Shares on the date of grant. Payment for the Shares purchased may be made in accordance with Section 6 of
this Plan.



5.5 Method of Exercise. Options may be
exercised only by delivery to the Company of a written stock option exercise agreement (the Exercise Agreement) in a form approved by the



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Committee (which need not be the same for each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if any, and such representations and agreements regarding the Participants investment intent and access to information and other matters, if any, as may be required or
desirable by the Company to comply with applicable securities laws, together with payment in full of the Exercise Price for the number of Shares being purchased.



5.6 Termination. Except as otherwise determined by the Committee and set forth in the Award Agreement, exercise of an
Option is subject to the following:



| | (a) | If the Participant is Terminated for any reason except death or Disability, then the Participant may exercise such Participants Options no later than three (3) months after
the Termination Date, but only to the extent that such Options would have been exercisable upon the Termination Date, and in any event, no later than the expiration date of the Options.
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| | (b) | If the Participant is Terminated because of the Participants death or Disability (or the Participant dies within three (3) months after a Termination other than because of the
Participants death or disability), then the Participants Options may be exercised only to the extent that such Options would have been exercisable by the Participant on the Termination Date and must be exercised by the Participant (or
the Participants legal representative or authorized assignee) no later than twelve (12) months after the but in any event no later than the expiration date of the Options.
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| | (c) | Notwithstanding (a) and (b) above, if the Participant is Terminated for cause (as defined in the applicable Award Agreement) any Option not exercised in full prior to such
termination will be deemed automatically canceled and may not be exercised on or after the Termination Date.
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5.7 Limitations on Exercise. The Committee may specify a reasonable minimum number of Shares that must be purchased on any exercise of an Option,
provided that such minimum number will not prevent the Participant from exercising the Option for the full number of Shares for which it is then exercisable.



5.8 Modification. Extension or Renewal. The Committee may modify, extend or renew outstanding Options and authorize the grant of new Options in
substitution therefor, provided that



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any such action may not, without the written consent of a Participant, impair any of such Participants rights under
any Option previously granted. The Committee may reduce the Exercise Price of outstanding Options without the consent of the Participants affected by a written notice to them; provided, however that the Exercise Price may not be reduced below the
minimum Exercise Price that would be permitted under Section 5.4 of this Plan for Options granted on the date the action is taken to reduce the Exercise Price.



6. Payment for Share Purchases.



6.1 Payment. Payment for Shares purchased pursuant to this Plan may be made in cash (by check) or, where expressly approved for the Participant by
the Committee and where permitted by law:



| | (a) | by cancellation of indebtedness of the Company to the Participant;
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| | (b) | by surrender of shares of common stock of the Company that are acceptable to the Committee;
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| | (c) | by tender of a full recourse promissory note having such terms, including security for the note, as the Committee may determine, or as may be required by law;
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| | (d) | by waiver of compensation due or accrued to the Participant for services rendered;
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| | (e) | provided that a public market for the Companys stock exists:
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| | (1) | through a same day sale commitment from the Participant and a broker-dealer that is a member of the National Association of Securities Dealers (an NASD
Dealer) whereby the Participant irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased to pay for the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to
forward the Exercise Price directly to the Company; or
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| | (2) | through a margin commitment from the Participant and a NASD Dealer whereby the Participant irrevocably elects to exercise the Option and to pledge the Shares so
purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the Exercise Price directly to
the Company; or
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(f) by any combination of the
foregoing, or by such other method as is approved by the Committee and otherwise permitted by law.



6.2 Loan Guarantees. The Committee may help the Participant pay for Shares purchased under this Plan by authorizing a guarantee by the Company of a
third-party loan to the Participant.



7. Withholding
Taxes.



7.1 Withholding Generally. Whenever Shares
are to be issued in satisfaction of Awards granted under this Plan, the Company may require the Participant to remit to the Company an amount sufficient to satisfy federal, state, and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares.



7.2 Stock
Withholding. When, under applicable tax laws, a Participant incurs tax liability in connection with the exercise or vesting of any Award that is subject to tax withholding and the Participant is obligated to pay the Company the amount required
to be withheld, the Committee may allow the Participant to satisfy the minimum withholding tax obligation by electing to have the Company withhold from the Shares to be issued that number of Shares having a Fair Market Value equal to the minimum
amount required to be withheld, determined on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares withheld for this purpose will be made in writing in a form acceptable to the Committee
and will be subject to such additional restrictions as the Committee may elect to impose.



8. Rights as a Stockholder. No Participant will have any of the rights of a stockholder with respect to any Shares until the Shares are issued to the Participant. No adjustment shall be made for dividends or
distributions or other rights for which the record date is prior to the date such certificate or certificates are issued, except as provided in Section 2.2 above.



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9. Transferability. Awards granted under this Plan, and any interest therein, will not be
transferable or assignable by any Participant, and may not be made subject to execution, attachment or similar process, otherwise than by will or by the laws of descent and distribution or as consistent with the specific Plan and Award Agreement
provisions relating thereto. During the lifetime of a Participant, the Award will be exercisable only by the Participant, and any elections with respect to the Award, may be made only by the Participant.



10. Certificates. All certificates for Shares delivered under this
Plan will be subject to such stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable, including restrictions under any applicable federal, state or foreign securities law, or any rules, regulations and
other requirements of the SEC or any stock exchange or automated quotation system upon which the Shares may be listed or quoted.



11. Exchange of Awards. The Committee may, at any time or from time to time with the consent of the respective Participants issue new Awards in
exchange for the surrender and cancellation of existing Awards. The Committee may at any time buy from a Participant an Award previously granted with payment in cash, Shares or other consideration, based on such terms and conditions as the Committee
and the Participant may agree.



12. Securities Law and Other
Regulatory Compliance. An Award will not be effective unless such Award is in compliance with all applicable federal and state securities laws, rules and regulations of any governmental body, and the requirements of any stock exchange or
automated quotation system upon which the Shares may then be listed or quoted, as they are in effect on the date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any other provision in this Plan, the Company
will have no obligation to issue or deliver certificates for Shares under this Plan prior to: (a) obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and/or (b) completion of any registration or
other qualification of such Shares under any state or federal law or ruling of any governmental body that the Company determines to be necessary or advisable.



13. No Obligation to Employ. Nothing in this Plan or any Award granted under this Plan will confer or be deemed to confer on any Participant any
right to continue in the employ of, or to continue any other relationship with, the Company or any Parent or Subsidiary of the Company or limit in any way the right of the Company or any Parent or Subsidiary of the Company to terminate any
Participants employment or other relationship at any time, with or without cause.



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14. Corporate Transactions.



14.1 Assumption or Replacement of Awards by Successor. In the event of (a) a dissolution or liquidation of the
Company, (b) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary, a reincorporation of the Company in a different jurisdiction, or other
transaction in which there is no substantial change in the stockholders of the Company or their relative stock holdings and the Awards granted under this Plan are assumed, converted or replaced by the successor corporation, which assumption will be
binding on all Participants), (c) a merger in which the Company is the surviving corporation but after which the stockholders of the Company (other than any stockholder which merges (or which owns or controls another corporation which merges) with
the Company in such merger) cease to own their shares or other equity interests in the Company, (d) the sale of substantially all of the assets of the Company, or (e) any other transaction which qualifies as a corporate transaction under
Section 424(a) of the Code wherein the stockholders of the Company give up all of their equity interest in the Company (except for the acquisition, sale or transfer of all or substantially all of the outstanding shares of the Company from or by the
stockholders of the Company), any or all outstanding Awards may be assumed, converted or replaced by the successor corporation (if any), which assumption, conversion or replacement will be binding on all Participants. In the alternative, the
successor corporation may substitute equivalent Awards or provide substantially similar consideration to the Participants as was provided to stockholders (after taking into account the existing provisions of the Awards). The successor corporation
may also issue, in place of outstanding Shares of the Company held by the Participant, substantially similar shares or other property subject to repurchase restrictions no less favorable to the Participant. In the event such successor corporation
(if any) refuses to assume or substitute Options, as provided above, pursuant to a transaction described in this Subsection 14.1, such Options will expire on such transaction at such time and on such conditions as the Board will determine. The Board
may elect to fully or partially accelerate the vesting of Options prior to the closing of the transaction.



14.2 Other Treatment of Awards. Subject to any greater rights granted to the Participants under the foregoing provisions of this Section 14, in the
event of the occurrence of any transaction described in Section 14.1, any outstanding Awards will be treated as provided in the applicable agreement or plan of merger, consolidation, dissolution, liquidation, sale of assets or other corporate
transaction.



14.3 Assumption of Awards by the
Company. The Company, from time to time, also may substitute or assume outstanding awards granted by another company, whether in connection with an acquisition of such other company or otherwise, by either; (a) granting an Award under this Plan
in substitution of such other companys award; or (b) assuming such award as if it had been granted under this Plan if the terms of such assumed award could be applied to an Award granted under this Plan. Such substitution or assumption will be
permissible if the holder of the substituted or assumed award would have been eligible to be granted an Award under this Plan if the other company had applied the rules of this Plan to such grant. In the event the Company assumes an award granted by
another company, the terms and conditions of such award will remain unchanged (except that the exercise price and the number and nature of Shares issuable upon exercise of any such option will be adjusted appropriately pursuant to Section 424(a) of
the Code). In the event the Company elects to grant a new Option rather than assuming an existing option, such new Option may be granted with a similarly adjusted Exercise Price.



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15. Adoption and Stockholder Approval. This Plan was adopted by the Board effective as of February
16, 1999. The Board may at its discretion seek stockholder approval of this Plan, if it determines that such approval is required by law, The Nasdaq Stock Market Marketplace Rules, or is otherwise necessary or desirable.



16. Term of Plan. The Plan shall be unlimited in duration and, in the
event of Plan termination, shall remain in effect as long as any Awards under it are outstanding.



17. Amendment or Termination of Plan. The Board may at any time terminate or amend the Plan without the approval of the stockholders of the
Company, unless such approval is required by law (including Section 16(b) of the Exchange Act), The Nasdaq Market Marketplace Rules, or otherwise. Notwithstanding the foregoing, no amendment or termination may, in the absence of written consent by
the affected Participant (or, if the Participant is not then living, the affected beneficiary), adversely affect the rights of any Participant or beneficiary under any Award granted under the Plan prior to the date such amendment or termination is
adopted by the Board; provided that adjustments pursuant to Section 2.2 and 14 shall not require the consent of any Participant.



18. Nonexclusivity of the Plan. Neither the adoption of this Plan by the Board, the submission of this Plan to the stockholders of the Company for
approval, nor any provision of this Plan will be construed as creating any limitations on the power of the Board to adopt such additional compensation arrangements as it may deem desirable, including, without limitation, the granting of stock
options and bonuses otherwise than under this Plan, and such arrangements may be either generally applicable or applicable only in specific cases.



19. Definitions.



Award means any award of Options under this Plan.



Award Agreement means, with respect to each Award, the signed written agreement between the
Company and the Participant setting forth the terms and conditions of the Award.



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Board means the Board of Directors of the Company.



Code means the Internal Revenue Code of 1986, as
amended.



Committee means a committee
of the Board comprised of two or more non-employee directors within the meaning of Rule 16b-3 of the Exchange Act who are also outside directors within the meaning of Treasury Regulation 1.162-27(e)(3) appointed to administer
this Plan, or if no such committee is appointed, the Board. During all times that the Company is subject to Section 16 of the Exchange Act, the Company will take appropriate steps to comply with the administration requirements of Section 16(b) of
the Exchange Act.



Company means
Modtech Holdings, Inc., a Delaware corporation, or any successor corporation.



Disability means a disability, whether temporary or permanent, partial or total, within the meaning of Section 22(e)(3) of the Code, as determined by the Committee.



Exchange Act means the Securities Exchange Act of
1934, as amended.



Exercise Price
means the price at which a holder of an Option may purchase the Shares issuable upon exercise of the Option.



Fair Market Value means, as of any date, the value of a share of the Companys Common Stock determined as follows:



| | (a) | if such Common Stock is then quoted on the Nasdaq National Market, its closing price on the Nasdaq National Market on the date of determination (if such day is a trading day), and,
if such date of determination is not a trading day, then on the last trading day prior to the date of determination;
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| | (b) | if such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the last trading day prior to the date of determination on the
principal national securities exchange on which the Common Stock is listed or admitted to trading;
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| | (c) | if such Common Stock is publicly traded but is not quoted on the Nasdaq National Market nor listed or admitted to trading on a national securities exchange, the average of the
closing bid and asked prices on the last trading day prior to the date of determination; or
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| | (d) | if none of the foregoing is applicable, by the Committee in good faith.
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Option means an award of an option to purchase Shares pursuant to Section 5.



Parent means any corporation (other than the
Company) in an unbroken chain of corporations ending with the Company, if at the time of the granting of an Award under this Plan, each of such corporations other than the Company owns stock possessing 50% or more of the total combined voting power
of all classes of stock in one of the other corporations in such chain.



Participant means a person who receives an Award under this Plan.



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Plan means this Modtech Holdings, Inc. 1999 Nonstatutory Stock Option Plan, as
amended from time to time.



SEC means
the Securities and Exchange Commission.



Securities
Act means the Securities Act of 1933, as amended.



Shares means shares of the Companys Common Stock and any successor security.



Subsidiary means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company if, at
the time of granting of the Award, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such
chain.



Termination or
Terminated means, for purposes of this Plan with respect to a Participant, that the Participant has for any reason ceased to provide services as an employee, director, consultant, independent contractor or advisor to the
Company or a Parent or Subsidiary of the Company, except in the case of sick leave, military leave, or any other leave of absence approved by the Committee, provided that such leave is for a period of not more than ninety (90) days, or reinstatement
upon the expiration of such leave is guaranteed by contract or statute. The Committee will have sole discretion to determine whether a Participant has ceased to provide services and the effective date on which the Participant ceased to provide
services (the Termination Date).