Document:

EXHIBIT 10.1

                                 August 30, 2006

Douglas Cameron McLeod
c/o Petrogulf Corporation
518 17th Street, Suite 1455
Denver, CO 80202
Attn:  Ronald P. Thompson
Vice President, Land and Legal

         Re:      Exploration Agreement for Wyandotte Prospect
                  St. Mary Parish, Louisiana

Gentlemen:

      When executed by all parties, this letter shall serve as the exploration
agreement ("Agreement") between Falcon Natural Gas Corp. ("Falcon") and Douglas
Cameron McLeod ("Participant") regarding Participant's acquisition of certain
undivided interests, set out more particularly below, in the above-referenced
Prospect. It is agreed that Petrogulf Corporation ("Petrogulf") shall be
designated as the contract Operator on behalf of Falcon, Participant and any
other participants in the Wyandotte Prospect.

      1.    Falcon has identified prospective acreage and acquired the leasehold
            rights needed to explore for oil, gas and other minerals underlying
            the Prospect area depicted in Exhibit 1 hereto (the "Prospect
            Area"). The current leasehold interests within the Prospect Area are
            more particularly described in Exhibit 2 hereto (the "Leasehold").
            Upon execution of this agreement, Participant shall pay Falcon the
            sum of $554,021 as consideration for the Leasehold and Falcon shall
            assign Participant a 15% working interest in the Leasehold within
            the surface boundaries of the existing DB-4 Unit, established by the
            Office of Conservation Order No-844-J effective November 30, 1999,
            from the surface to the stratigraphic equivalent of the base of the
            DB-4 Sand; a 50% working interest within the surface boundaries of
            the existing DB-4 Unit below the stratigraphic equivalent of the
            base of the DB-4 Sand; and a 50% working interest in the balance of
            the Leasehold lying within the boundaries of the Prospect Area. Such
            assignment shall convey a net revenue interest of seventy percent
            (70%), proportionately reduced to the working interest being
            acquired by Participant.
<PAGE>

2.    The parties have agreed to participate, on the terms set out herein, in
      the drilling of a well ("Test Well") to a depth sufficient to evaluate the
      DB-4 sand ("Objective Depth"), which is anticipated to be encountered at a
      depth of approximately 16,500 feet. Participant shall pay 18% of the costs
      incurred in the drilling the Test Well to Casing Point (hereinafter
      defined) and 15% of the costs incurred after Casing Point. All subsequent
      costs incurred within the AMI after reaching Casing Point in the Test Well
      shall be on a "heads-up" basis (proportional to each party's working
      interest). Participant shall commence operations on the Test Well within 6
      months from the effective date of this Agreement, subject to rig
      availability.

3.    Contemporaneously with the execution hereof, the parties hereto shall also
      execute and become subject to the Operating Agreement ("JOA"), naming
      Petrogulf as Operator. The JOA and all exhibits thereto are attached
      hereto and incorporated herein as Exhibit 3. Except to the extent of any
      conflict with the provisions of this Agreement, the JOA shall control the
      operations conducted on the Test Well and any subsequent wells drilled on
      the Test Well Unit. If a subsequent well or wells are drilled elsewhere on
      the AMI, the same form of JOA shall be applicable, modified only to
      reflect the description of the lands covered (the "Contract Area") and the
      interests of the parties therein. The Contract Area for each such
      subsequent well shall be identified and agreed upon by the parties. Should
      there be a conflict between the terms and conditions of the JOA (or any
      subsequent-well JOA) and the terms and conditions of this Agreement, the
      terms and conditions of this Agreement shall prevail.

4.    The parties hereby establish an area of mutual interest ("AMI") consisting
      of the land area identified on the plat attached hereto as Exhibit 1. All
      interests in lands within the AMI subsequently acquired by either party
      will be offered to the non-acquiring party on a 50/50 basis and at actual
      cost. Promptly upon the acquisition of any mineral, royalty, overriding
      royalty or leasehold interest or option or contract to acquire any of the
      same, the acquiring party shall provide written notice to the other
      parties, identifying the interest acquired, stating the consideration paid
      therefor, and providing copies of the instrument(s) of acquisition, any
      agreements or correspondence relating to same, any documents evidencing
      costs incurred by the acquiring party, and a plat of the location of the
      interest so acquired. Each non-acquiring party shall have a period of
      fifteen (15) days after receipt of such notice in which to elect to
      participate in such acquisition. If a non-acquiring party elects to
      participate, it shall, at or before the expiration of said fifteen
      (15)-day period, give written notice of such election to the acquiring
      party and tender payment of its pro-rata share of the acquisition costs
      thereof. If the interest is to be earned by conducting drilling or other
      operations, the acquiring party's notice shall include an Authority for
      Expenditure ("AFE") and estimated costs of such operations, and the
      non-acquiring party's response period shall be extended to thirty (30)
      days, and the response shall include such party's execution and return of
      the AFE together with payment of its share of estimated dry hole costs of
      the operations to be conducted. If less than all parties elect to
      participation in an acquisition, the interest acquired shall be shared in
      proportion to the interests of the electing parties, unless the electing
      parties otherwise agree; and any such interest shall be subject to a JOA
      identical to the JOA attached hereto, modified only as to the parties,
      their interests in costs and production and the legal description of the
      interest(s) covered thereby. The AMI shall expire when the parties, their
      successors and assigns no longer own any oil and gas leasehold interests
      in the AMI, but in no event shall the AMI remain in effect more than ten
      (10) years from the effective date of this agreement.

                                       2
<PAGE>

Petrogulf Corporation
August 30, 2006
Page 3

5.    All assignments of oil and gas leases or other rights required to be
      assigned hereunder shall utilize the form of assignment attached hereto as
      Exhibit 4. The initial assignment of the existing oil and gas leases from
      Falcon to Participant will assign such leases at a seventy percent (70%)
      net revenue interest, proportionately reduced to the working interest
      acquired by Participant. Leases subsequently acquired shall be assigned
      subject to the burdens imposed thereon by non-affiliated third parties,
      which are in existence when acquired by any party hereto. The interests
      assigned shall be subject to the terms and conditions of the leases, all
      of the royalties, overriding royalties and other burdens payable out of
      production. Any such interest shall also be subject to the provisions of
      the JOA.

6.    The parties agree that the information supplied by Falcon or developed
      from operations conducted hereunder concerning the Test Well and the
      Prospect Area shall be subject to the confidentiality agreement set out as
      Exhibit 5, which is attached hereto and incorporated herein.

7.    Any controversy or claim arising out of or relating to this agreement, or
      the breach thereof, except controversies involving less than $50,000,
      shall be settled by arbitration in accordance with the Commercial
      Arbitration Rules of the American Arbitration Association, and judgment on
      the award rendered by the arbitrator(s) may be entered in any court in
      Houston, Harris County, Texas, having jurisdiction thereof. Any
      arbitration brought under the terms of this Agreement shall be conducted
      in the following manner: (1) Each of the parties to this agreement shall
      appoint one person as an arbitrator. The two arbitrators so chosen shall
      select a third impartial arbitrator within ten (10) days of the date on
      which the second arbitrator is selected. The three arbitrators shall
      determine all questions presented to them by majority vote. The decision
      of a majority of the arbitrators shall be final and conclusive on the
      parties. (2) The arbitration hearing shall be held at Houston, Harris
      County, Texas, and the award of the arbitrators may be entered in any
      court of competent jurisdiction in said county. (3) The parties agree that
      the following time limitations shall govern the arbitration proceedings
      conducted under the terms of this agreement: (a) any demand for
      arbitration must be filed within thirty (30) days of the date on which the
      dispute arises or the alleged breach occurs; (b) each party must select an
      arbitrator within ten (10) days of receipt of notice that an arbitration
      proceeding has commenced. In the event that no such selection is made, the
      arbitrator selected by the other party may conduct the arbitration
      proceeding without selecting any other arbitrator; (c) the hearing must be
      held within sixty (60) days of the date on which the third arbitrator is
      selected; (d) The arbitration award must be made within thirty (30) days
      after the hearing; (4) The expenses of such arbitration shall be borne in
      such proportion as the arbitrators shall decide.

                                       3
<PAGE>

Petrogulf Corporation
August 30, 2006
Page 4

8.    This Agreement and the rights and obligations of the parties hereunder
      shall be governed by and interpreted, construed and enforced in accordance
      with the laws of the State of Texas. This Agreement shall be performable
      in Harris County, Texas.

9.    This Agreement is the entire agreement of the parties, and may not be
      modified except by a writing signed by both parties. This Agreement shall
      be binding upon and inure to the benefit of the parties hereto and their
      respective heirs, legal representatives, successors and assigns. There are
      no third party beneficiaries to this Agreement.

10.   The Parties hereto agree that they do not hereby intend to create a
      partnership, mining partnership, partnership for tax purposes or
      otherwise, or any agency or other fiduciary relationship, whereby any of
      the parties hereto may become liable for the acts and deeds of the other
      parties hereto, and to the extent permitted by law, the parties hereto
      expressly negate the existence of any such relationship. Each party shall
      be responsible for bearing and paying its share of costs and expenses
      incurred as set out in this Agreement and the JOA. Further, each party to
      this Agreement elects to be excluded from the application of all of the
      provisions of Subchapter "K", Chapter 1, Subtitle "A," of the Internal
      Revenue Code (IRC) of 1986, as amended, as permitted and authorized by IRC
      section 761 and the regulation promulgated thereunder.

11.   The parties hereto agree to cooperate fully in executing any and all
      supplementary documents required or advisable or reasonably requested by
      the other party and to take any and all additional actions that may be
      necessary and appropriate to give full force and effect to the basic terms
      and intent of this Agreement.

12.   Falcon believes that the information provided by Falcon concerning the
      geological, engineering or financial aspects of an investment in the Test
      Well and Prospect is accurate, but does not make any warranty or
      representation concerning the accuracy of same. Participant acknowledges
      the risks inherent in any oil and gas investment, and Participant
      represents that it has conducted its own "due-diligence" investigation and
      is fully capable of evaluating such risks, and has consulted with its own
      geological and engineering advisors and has made its investment decision
      based solely on such due diligence and independent advice.

                                       4
<PAGE>

Petrogulf Corporation
August 30, 2006
Page 5

13.   The participation by Participant under this Agreement is conditioned upon
      the receipt by Falcon of an executed copy of this Agreement and the
      operating agreement hereinafter mentioned, as well as the receipt of the
      sums called for herein. Falcon shall have the right to rescind the offer
      to participate if Participant fails to execute this Agreement within ten
      (10) days after the date of this Agreement, or fails to timely pay the
      sums required herein when said sums become due and payable.

14.   The effective date of this agreement is August 1, 2006.

      If the forgoing meets with your approval and assent, please acknowledge
your agreement to the foregoing terms and conditions by signing in the space
provided below and returning this original letter agreement to Falcon. A signed
copy has been provided for your records.

                                                FALCON NATURAL GAS CORP.

                                                By:      /s/ Fred B. Zaziski
                                                   -----------------------------
                                                   Fred B. Zaziski, President

AGREED TO AND ACCEPTED this
30th day of August, 2006.

PARTICIPANT:

/s/ Betty A. Pennington, Attorney in Fact
-----------------------------------------
Douglas Cameron McLeod

AGREED TO AND ACCEPTED this
30th day of August, 2006

PETROGULF CORPORATION

By:/s/ Betty A. Pennington
   --------------------------------------
       Betty A. Pennington
       Executive Vice President

                                       5Exhibit
      10.1

     

    EMPLOYMENT
      AGREEMENT

     

    THIS
      EMPLOYMENT AGREEMENT (this “Agreement”) is entered into and made effective as of
      June 13, 2006 by and between MODTECH HOLDINGS, INC., a Delaware corporation
      (the
“Company”), and Dennis Shogren (“Executive”).

     

    R
      E C I T A L S

     

    WHEREAS,
      Executive previously serving as the Company’s Senior Vice President of Finance
      and Chief Financial Officer (CFO) being promoted to President and Chief
      Executive Officer (CEO).

     

    WHEREAS,
      the Company desires to retain the services of Executive on the terms and
      conditions provided herein, and Executive is willing to provide such services
      on
      such terms and conditions.

     

    A
      G R E E M E N T

     

    NOW,
      THEREFORE, in consideration of the foregoing premises and the mutual covenants
      of the parties contained herein, the parties agree as follows:

     

    1. Term.
      This
      Agreement shall continue in full force and effect for a period which shall
      commence on June 13, 2006 and shall continue until December 31, 2007 (the
“Term”), unless sooner terminated as hereinafter provided or extended by the
      mutual agreement of the parties. On December 31, 2007, and on each one-year
      anniversary of that date, this Agreement shall automatically be renewed for
      a
      period of one year, unless either party shall have given the other written
      notice of their intent not to renew this Agreement at least thirty (30)
      calendar days prior to the expiration of the Term or any extension.

     

    2. Services
      and Exclusivity of Services.
      So long
      as this Agreement shall continue in effect, Executive shall devote Executive’s
      full business time, energy and ability exclusively to the business, affairs
      and
      interests of the Company and its direct and indirect subsidiaries
      (“Subsidiaries), and matters related thereto, shall use Executive’s best efforts
      and abilities to promote the Company’s interests, and shall perform the services
      contemplated by this Agreement in accordance with policies established by and
      under the direction of the Board of Directors of the Company (the “Board”).
      Executive shall at all times perform Executive’s duties and obligations
      faithfully and diligently and to the best of Executive’s ability.

     

    Executive
      may make and manage personal business investments of Executive’s choice and
      serve in any capacity with any civic, educational or charitable organization
      without seeking or obtaining approval by the Board or the CEO, provided that
      such activities and services do not substantially interfere or conflict with
      the
      performance of duties hereunder or create any conflict of interest with such
      duties. An investment that exceeds five percent (5%) of the equity securities
      or
      capitalization of a competitor, supplier or customer of the Company shall be
      deemed to constitute such a conflict.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Executive
      represents to the Company that Executive has no other outstanding commitments
      inconsistent with any of the terms of this Agreement or the services to be
      rendered hereunder.

     

    3. Duties
      and Responsibilities.
      Executive shall serve as President and Chief Executive Officer of the Company
      for the duration of this Agreement. In performance of Executive’s duties,
      Executive shall report directly to the Chairman of the Board and shall be
      subject to such limits on Executive’s authority as the Chairman of the Board may
      from time to time impose. Executive agrees to observe and comply with the rules
      and regulations of the Company as adopted by the Board respecting the
      performance of Executive’s duties and agrees to carry out and perform directions
      and policies of the Company and its Board as they may be stated, either orally
      or in writing, from time to time. Executive shall have responsibilities, duties
      and authority consistent with Executive’s position as assigned by the Board,
      including day to day responsibility for the management of all of the Company’s
      affairs and operations, including oversight of the operations and management
      of
      any Subsidiaries. In addition, Executive shall serve as a member of the
      Company’s Board, and may serve on one or more committees thereof, but without
      compensation other than as provided for in Section 4 below. 

     

    4. Compensation,
      Benefits and Vacation.
      As
      compensation for the services provided by Executive hereunder, Executive shall
      be entitled to receive such compensation, benefits and vacation as set forth
      in
Exhibit
      A
      to this
      Agreement, subject to the terms and conditions of this Agreement, and subject
      to
      all appropriate shareholder approvals.

     

    5. Expenses.
      During
      the Term hereof, Executive shall be entitled to receive prompt reimbursement
      of
      all reasonable expenses incurred by Executive (in accordance with the policies
      and procedures from time to time adopted by the Board for the Company’s senior
      officers) in performing the services contemplated hereunder, provided that
      Executive properly accounts therefor in accordance with the Company’s
      policies.

     

    6. Termination.

     

    (a) Death.
      Executive’s employment hereunder shall terminate immediately upon the death of
      Executive. In the event that Executive’s employment is terminated by reason of
      Executive’s death, the Company shall pay Executive’s estate or beneficiaries, as
      applicable, the following amounts, after deducting any amounts lawfully owing
      from Executive to the Company: (i) any Base Salary (as defined in Exhibit
      A
      to this
      Agreement or bonuses earned but unpaid through the date of termination); (ii)
      any vacation days accrued but unused prior to Executive’s termination; (iii) any
      expense reimbursements owed to Executive prior to Executive’s termination; and
      (iv) any unpaid vested amounts or benefits under the Company’s pension, deferred
      compensation or other benefit plans, subject to the terms and conditions of
      such
      plans (the items described in clauses (i) through (iv) of this sentence shall
      be
      referred to herein collectively as the “Standard Termination Benefits”). After
      such payments described in the preceding sentence, the Company shall have no
      further obligation to Executive or Executive’s estate or beneficiaries, as
      applicable, except to the extent that Executive’s estate or beneficiaries, as
      applicable, may be entitled to exercise any vested stock options or other equity
      compensation granted to Executive as contemplated in Exhibit
      A
      to this
      Agreement or otherwise (subject to the terms and conditions of applicable option
      plans and/or option agreements).

     

    
      
         

      

      
        -
          2 -

        
          

        

      

      
         

      

    

    (b) Disability.
      In the
      event that Executive shall be unable to perform the services contemplated
      hereunder by reason of disability, illness or other incapacity for a period
      of
      at least 90 consecutive days or an aggregate of 120 days, whether or not
      consecutive, during any 12 month period (“Disability”), the Company may
      terminate Executive’s employment hereunder prior to the expiration of the Term.
      In the event that Executive’s employment is terminated by reason of Executive’s
      Disability the Company shall pay to Executive in a lump sum payment in an amount
      equal to six (6) months of Executive’s Base Salary, less required withholding
      and deductions (the “Severance Payment”). The Severance Payment shall be made in
      full within thirty (30) days following the Date of Termination. After such
      payments described in the preceding sentence, the Company shall have no further
      obligation to Executive, except to the extent that Executive may be entitled
      to
      exercise any vested stock options or other equity compensation granted to
      Executive as contemplated in Exhibit
      A
      to this
      Agreement or otherwise (subject to the terms and conditions of applicable option
      plans and/or option agreements).

     

    (c) By
      the Company, Without Cause.
      Executive’s employment hereunder may be terminated by the Company at any time
      prior to the expiration of the Term, for Cause (as defined below) or without
      Cause. 

     

    (d) By
      the Company, For Cause.
      Executive’s employment hereunder may be terminated by the Company prior to the
      expiration of the Term for “Cause.” For the purposes of this Agreement, “Cause”
means (i) other than as a result of incapacity due to Executive’s
      Disability or Executive’s death, Executive’s failure or refusal to perform
      Executive’s duties or responsibilities or to follow the lawful directions of the
      CEO or the Board or Executive’s material breach of any of Executive’s duties and
      responsibilities under this Agreement or under the Company’s policies with
      respect to its employees or senior officers, in each case, after the Company
      provides Executive with written notice of such failure, refusal or breach and
      Executive fails to cure such failure, refusal or breach within 10 calendar
      days
      from the date of delivery of such notice to Executive; (ii) Executive’s
      conviction by, or entry of a plea of guilty or nolo contendere in, a court
      of
      competent jurisdiction for a felony, or any crime which, in the Company’s sole
      discretion, adversely affects the Company or its reputation in the community,
      or
      any crime which involves moral turpitude or is punishable by imprisonment;
      (iii) Executive’s commission of an act of fraud or embezzlement with
      respect to the Company or any personal dishonesty by Executive with respect
      the
      Company or Executive’s obligations to the Company; (iv) Executive’s
      violation of Executive’s duty of loyalty to the Company or Executive’s breach of
      Executive’s fiduciary duty to the Company; (v) Executive’s intentional or
      knowing failure to comply with, or violation of, or causing the Company to
      fail
      to comply with or violate, any laws or regulations applicable to the Company,
      including, without limitation, federal or state securities laws and regulations
      issued by the Internal Revenue Service; (vi) Executive becoming barred or
      prohibited by the Securities and Exchange Commission or another governmental
      entity or a securities exchange or quotation system upon which the Company’s
      securities are traded from holding Executive’s position with the Company; or
      (vii) Executive’s use of illegal drugs or other illegal substances.

     

    
      
         

      

      
        -
          3 -

        
          

        

      

      
         

      

    

    In
      the
      event that Executive is terminated by the Company for Cause, the Company shall
      pay Executive the Standard Termination Benefits (as defined above), after
      deducting any amounts lawfully owing from Executive to the Company. After such
      payments described in the preceding sentence, the Company shall have no further
      obligation to Executive, except to the extent that Executive may be entitled
      to
      exercise any vested stock options or other equity compensation granted to
      Executive as contemplated in Exhibit
      A
      to this
      Agreement or otherwise (subject to the terms and conditions of applicable option
      plans and/or option agreements).

     

    (e) By
      Executive.
      Executive shall be entitled to terminate Executive’s employment with the Company
      hereunder upon thirty (30) days prior written notice. In the event that
      Executive terminates Executive’s employment, the Company shall pay Executive the
      Standard Termination Benefits (as described above), after deducting any amounts
      lawfully owing from Executive to the Company. After such payments described
      in
      the preceding sentence, the Company shall have no further obligation to
      Executive, except to the extent that Executive may be entitled to exercise
      any
      vested stock options or other equity compensation granted to Executive as
      contemplated in Exhibit
      A
      to this
      Agreement or otherwise (subject to the terms and conditions of applicable option
      plans and/or option agreements).

     

    (f) Form
      of Notice.
      Any
      termination of Executive’s employment by the Company or by Executive shall be
      communicated by written Notice of Termination to the other party hereto. For
      purposes of this Agreement, a “Notice of Termination” shall mean a notice which
      shall indicate the specific termination provision in this Agreement relied
      upon,
      shall set forth in reasonable detail the facts and circumstances claimed to
      provide a basis for termination of Executive’s employment under the provision so
      indicated, and shall set forth the date upon which such termination is effective
      (“Date of Termination”).

     

    7. Compensation
      with respect to Terminations by Company without Cause or by Executive for
      Certain Reasons following Change of Control.
      In the
      event that (i) the Company terminates Executive’s employment without Cause
      (other than by reason of Executive’s death or Disability), or (ii) the Company
      declines to renew the Agreement at the expiration of the Term or any one year
      renewal thereof (other than for Cause or by reason of Executive’s death or
      Disability), or (iii) within one year following a Change of Control (as defined
      below), Executive terminates Executive’s employment due to a significant
      reduction in Executive’s duties, responsibilities and position relative to the
      duties, responsibilities and position of Executive immediately prior to such
      reduction (which such reduction continues without cure for a period of 30 days
      following Executive providing written notice to the Board of such significant
      reduction), Executive shall be entitled to the following severance benefits
      (after deducting any amounts lawfully owing from Executive to the Company)
      upon
      execution by Executive of a general release (which must be acceptable to the
      Company) of any and all claims relating to or arising from Executive’s
      employment or termination of employment:

     

    (a) Severance
      Payment.
      The
      Company shall pay to Executive in a lump sum payment in an amount equal to
      twelve (12) months of Executive’s Base Salary, less required withholding and
      deductions (the “Severance Payment”). The Severance Payment shall be made in
      full within thirty (30) days following the Date of Termination. Executive
      is not required to mitigate the amount of the Severance Payment by seeking
      other
      employment or otherwise, nor shall any compensation earned by Executive in
      other
      employment or otherwise reduce the amount of the Severance Payment.

     

    
      
         

      

      
        -
          4 -

        
          

        

      

      
         

      

    

    (b) Pro-Rated
      Earned Bonus.
      The
      Company shall pay Executive a pro-rated earned bonus for the period of time
      during which Executive was employed by the Company during the applicable bonus
      period (based on the number of days Executive worked during such period divided
      by 365). Such pro-rated earned bonus shall be paid at such time as Executive
      would have otherwise received Executive’s bonus. 

     

    (c) Equity
      Compensation.
      All
      stock options, grants or other forms of equity compensation held by Executive
      shall cease vesting as of the effective date of Executive’s termination.
      Executive shall have the right to exercise vested stock options in accordance
      with the terms and conditions of the applicable option plan. If Executive’s
      termination occurs following a Change of Control (#8 below) equity compensation
      previously granted to Executive shall vest immediately upon
      termination.

     

    (d) Medical
      Benefits.
      Provided that Executive timely elects continuation of Executive’s and
      Executive’s eligible dependents medical and dental insurance coverage under
      COBRA, and they remain eligible for the continuation of such coverage under
      COBRA, the Company will cause to be continued medical and dental coverage
      substantially equivalent to the coverage maintained by the Company or its
      Subsidiaries for Executive and Executive’s eligible dependents prior to
      Executive’s termination. The Company shall provide such coverage to Executive at
      no premium cost to Executive, and it shall provide such coverage to Executive’s
      eligible dependents under the same terms and conditions, including the
      requirement of premium contributions, as applicable to the Company’s senior
      officers in active employment status. Such coverage shall cease upon the
      earliest of the following events: (i) expiration twelve (12) months from
      the Date of Termination, or (ii) when Executive or Executive’s eligible
      dependents cease to qualify for such extension of coverage under
      COBRA.

     

    (e) Other
      Payments.
      Executive shall be entitled to receive (i) any vacation days accrued but unused
      prior to Executive’s termination; (ii) any expense reimbursements owed to
      Executive prior to Executive’s termination; and (iii) any unpaid vested amounts
      or benefits under the Company’s pension, deferred compensation or other benefit
      plans, subject to the terms and conditions of such plans. After such payments
      described in this Section 7, the Company shall have no further obligation to
      Executive, except to the extent that Executive may be entitled to exercise
      any
      vested stock options granted to Executive as contemplated in Exhibit
      A
      to this
      Agreement or otherwise (subject to the terms and conditions of applicable option
      plans and/or option agreements).

     

    8. Change
      of Control.
       For
      purposes of this Agreement, a “Change of Control” shall be deemed to have taken
      place if: (i) any person or entity or group of affiliated persons or
      entities, including a group which is deemed a “person” by Section
      13(d)(3) of the Securities Exchange Action of 1934, as amended (the
“Exchange Act”), after the date hereof first acquires in one or more
      transactions, at least one of which is after the date of this Agreement,
      Ownership (as defined below) of fifty percent (50%) or more of the outstanding
      shares of stock entitled to vote in the election of directors of the Company,
      and (ii) as a result of, or in connection with, any such acquisition or any
      related proxy contest, cash tender or exchange offer, merger or other business
      combination, sale of all or substantially all of the assets of the Company
      or
      any combination of the foregoing transactions, hereinafter referred to as a
      “Transaction,” the persons who were directors of the Company immediately before
      the Transaction shall cease to constitute three-fourths of the membership of
      the
      Board or any successor to the Company during the period commencing with the
      consummation of the Transaction and ending on the first to occur of the first
      anniversary of such date or the conclusion of the next meeting of shareholders
      to elect directors. For purposes of this Agreement, “Ownership” means beneficial
      or record ownership, directly or indirectly, other than (i) by a person
      owning such shares merely of record (such as a member of a securities exchange,
      a nominee, or a securities depository system); (ii) by a person as a bona
      fide pledge of shares prior to a default and determination to exercise powers
      as
      an owner of the shares, (iii) by a person who is not required to file
      statements on Schedule 13D by virtue of Rule 13d-1(b) of the Securities and
      Exchange Commission under the Exchange Act, or (iv) by a person who owns or
      holds shares as an underwriter acquired in connection with an underwritten
      offering pending and for purposes of their public resale or planned private
      placement in increments of less than such amount.

     

    
      
         

      

      
        -
          5 -

        
          

        

      

      
         

      

    

    9. Indemnification.
      The
      Company shall indemnify Executive to the fullest extent permitted by law, for
      all amounts, (including, without limitation, judgments, fines, settlement
      payments that the Company has expressly approved in writing, litigation expenses
      and attorneys’ fees), incurred or paid by Executive in connection with any
      action, suit, investigation or proceeding, or threatened action, suit,
      investigation or proceeding, arising out of or relating to the performance
      by
      Executive of services for, or the acting by Executive as a director, officer
      or
      employee of, the Company or any Subsidiary. Any fees or other necessary expenses
      incurred by Executive in defending any such action, suit, investigation or
      proceeding shall be paid by the Company in advance, subject to the Company’s
      right to seek repayment from Executive if a determination is made that Executive
      was not entitled to indemnity. During the Term of this Agreement and for twenty
      four (24) months following Executive’s Date of Termination, the Company or its
      successor shall maintain general liability and directors and officers liability
      insurance covering Executive for claims and other amounts set forth in this
      Section 9. Nothing in this Section 9 or elsewhere in this Agreement is intended
      to prevent the Company from indemnifying Executive to any greater extent than
      is
      required by this Section 9.

     

    10. Proprietary
      Information.

     

    (a) Confidential
      Information.
      As used
      in this Agreement “Confidential Information” means (i) information (A) that
      is not known by actual or potential competitors of Company or is not generally
      known to the public, (B) that has been created, discovered, developed, or
      otherwise become known to the Company, or in which property rights have been
      assigned or otherwise conveyed to the Company, and (C) that has economic
      value to the Company’s present or future business and (ii) trade secrets (as
      defined under California Civil Code Section 3426.1) and all other discoveries,
      developments, designs, improvements, inventions, formulas, methods, software
      programs, processes, techniques, marketing materials, know-how, data, research,
      technical data, customer lists (past and present), customer preferences,
      financial information, contacts, lead sources, marketing materials, and
      personnel information, and any modifications or enhancements of any of the
      foregoing, and all program, marketing, sales, personnel, or other financial
      or
      business information, disclosed to Executive by the Company, either directly
      or
      indirectly, in writing or orally or by drawings or observation, which has actual
      or potential economic value to the Company, its Subsidiaries, divisions and
      affiliates.

     

    
      
         

      

      
        -
          6 -

        
          

        

      

      
         

      

    

    (b) Duty
      of Trust and Confidentiality.
      Executive’s employment with the Company creates a duty of trust and
      confidentiality to the Company with respect to the Confidential Information,
      or
      any other information: (a) related, applicable, or useful to the business
      of the Company, including its anticipated research and development; or
      (b) resulting from tasks assigned to Executive by the Company; or
      (c) resulting from the use of equipment, supplies, or facilities owned,
      leased, or contracted for by the Company; or (d) related, applicable, or
      useful to the business of any of the Company’s customers, which may be made
      known to Executive by the Company or by such customers, or learned by Executive
      during the course of Executive’s employment. Without limiting the generality of
      the foregoing, Executive agrees that while employed by the Company he will
      not
      divert or attempt to divert any business of the Company to any other competitive
      business by direct or indirect inducement or otherwise.

     

    (c) Nondisclosure
      of Proprietary Information.
      At all
      times, both during employment and after termination of employment, whether
      termination is voluntary or involuntary: (a) Executive will keep in
      strictest confidence and trust all Confidential Information; and
      (b) Executive will not disclose, use, or induce or assist in the use or
      disclosure of any Confidential Information without the Company’s prior express
      written consent, except as may be necessary in the ordinary course of performing
      Executive’s duties for the Company. Executive will take reasonable measures to
      prevent unauthorized persons or entities from having access to, obtaining,
      or
      being furnished with any Confidential Information.

     

    (d) Confidential
      and Proprietary Information of Third Parties.
      The
      Company has received and in the future will receive from third parties their
      confidential or proprietary information, subject to a duty to maintain the
      confidentiality of such information and to use it only for certain limited
      purposes. Executive agrees to hold all such confidential or proprietary
      information in strictest confidence, and will not disclose, use, or induce
      or
      assist in the use or disclosure of any such confidential or proprietary
      information without the Company’s prior express written consent, except as may
      be necessary in the ordinary course of performing Executive’s job duties for the
      Company, consistent with its agreement with such third party.

     

    (e) Return
      of Documents Upon Termination.
      All
      records, files, lists, drawings, documents, equipment and similar items relating
      to the Company’s business which Executive will prepare for or receive from the
      Company, during the course of Executive’s employment hereunder, shall remain the
      Company’s sole and exclusive property and Executive shall not acquire any
      interest therein. Upon termination of employment, and in any event at the
      request of the Company at any time, Executive shall promptly return to the
      Company all property of the Company in Executive’s possession and all documents,
      records, diskettes, hard drives, notebooks, work papers, and all similar
      material containing any Confidential Information, whether prepared by Executive,
      the Company or anyone else.

     

    (f) Non-solicitation
      of Employees Following Termination.
      During
      the term of this Agreement and for a period of twenty-four (24) months after
      the
      termination of employment for any reason, whether for or without Cause,
      Executive shall not directly or indirectly, either alone or in concert with
      others, solicit or in any way entice any employee of or consultant to the
      Company to leave the Company or work for anyone in competition with the
      Company.

     

    
      
         

      

      
        -
          7 -

        
          

        

      

      
         

      

    

    (g) Non-solicitation
      of Customers Following Termination.
      During
      the term of this Agreement and for a period of twenty-four (24) months after
      the
      termination of employment for any reason, whether for or without Cause,
      Executive shall not directly or indirectly, either alone or in concert with
      others, (a) contact any of the customers of the Company for the purpose of
      soliciting, inducing or encouraging such customers to divert or direct their
      business away from the Company, or (b) in any way attempt to disrupt the
      relationship between the Company and any of its customers, vendors or
      suppliers.

     

    (h) Reasonableness
      of Restrictions; Equitable Remedies.
      Executive agrees that the periods of restriction and the geographical areas
      of
      restriction imposed by the provisions of this Agreement are fair and reasonable
      and are reasonably required for the protection of the Company. Executive agrees
      that irreparable injury will result to the Company from Executive’s violation of
      any of the provisions set forth in Sections 10(a) through 10(g) of
      this Agreement. Executive expressly agrees that the Company will be entitled,
      in
      addition to damages and any other remedies provided by law, to an injunction
      or
      other equitable remedy respecting any such violation or continued
      violation.

     

    11. Parachute
      Payments.
      Notwithstanding anything to the contrary in this Agreement, if any payment
      or
      benefit Executive would receive from the Company pursuant to this Agreement
      or
      otherwise (“Payment”) would (i) constitute a “parachute payment” within the
      meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the
      “Code”), and (ii) but for this sentence, be subject to the excise tax imposed by
      Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to
      the Reduced Amount. The “Reduced Amount” shall be either (1) the largest portion
      of the Payment that would result in no portion of the Payment being subject
      to
      the Excise Tax or (2) the Payment or a portion thereof after payment of the
      applicable Excise Tax, whichever amount after taking into account all applicable
      federal, state and local employment taxes, income taxes and the Excise Tax
      (all
      computed at the highest applicable marginal rate), results in Executive’s
      receipt, on an after-tax basis, of the greatest amount of the Payment. If a
      reduction in payments or benefits constituting “parachute payments” is necessary
      so that the Payment equals the Reduced Amount, reduction shall occur in the
      order of payments Executive elects in writing, provided,
      however,
      that
      such election shall be subject to Company approval if made on or after the
      date
      on which the event that triggers the Payment occurs. The Company’s principal
      outside accounting firm will make all determinations hereunder and shall provide
      its calculations, together with detailed supporting documentation, to the
      Company and Executive within fifteen (15) calendar days after the date on which
      Executive’s right to a Payment is triggered (if requested at that time by the
      Company or Executive) or such other time as requested by the Company or
      Executive. If the accounting firm determines that no Excise Tax is payable
      with
      respect to a Payment, either before or after the application of the Reduced
      Amount, it shall furnish the Company and Executive with an opinion reasonably
      acceptable to Executive that no Excise Tax will be imposed with respect to
      such
      Payment. The Company shall be entitled to rely upon the accounting firm’s
      determinations, which shall be final and binding on all persons.

     

    
      
         

      

      
        -
          8 -

        
          

        

      

      
         

      

    

    12. Taxes
      and Deductions.
      Executive agrees and acknowledges that any and all payments and compensation
      (in
      any form) that Company makes or pays to Executive pursuant to this Agreement
      shall be subject to withholding taxes, employment taxes and such other
      deductions as the Company determines to be required by applicable law.

     

    13. General
      Provisions.

     

    (a) Any
      notice, request, demand or other communication required or permitted hereunder
      shall be deemed to be properly given when personally served in writing, when
      deposited in the United States mail, postage prepaid, addressed to the Company
      or Executive at their respective last known address, or when hand delivered
      to
      the intended recipient. Either party may change its address by written notice
      given in accordance with this subparagraph.

     

    (b) This
      Agreement shall inure to the benefit of and shall be binding upon the parties
      hereto and their respective executors, administrators, successors and assigns;
      provided,
      however,
      that
      Executive may not assign any or all of Executive’s rights or duties hereunder
      without the prior written consent of the Company.

     

    (c) This
      Agreement is made and entered into, is to be performed primarily within, and
      shall be governed by and construed in all respects in accordance with the laws
      of the State of California.

     

    (d) Captions
      and Section headings used herein are for convenience only and are not a part
      of
      this Agreement and shall not be used in interpreting or construing
      it.

     

    (e) Should
      any provision of this Agreement for any reason be declared invalid, void, or
      unenforceable by a court of competent jurisdiction, the validity and binding
      effect of any remaining portions shall not be affected, and the remaining
      portions of this Agreement shall remain in full force and effect as if this
      Agreement had been executed with said provision eliminated.

     

    (f) This
      Agreement contains the entire agreement of the parties, and supersedes any
      and
      all other agreements, either oral or in writing, between the parties hereto
      with
      respect to the employment of Executive by the Company. Each party to this
      Agreement acknowledges that no representations, inducements, promises or
      agreements, oral or otherwise, have been made by any party, or anyone acting
      on
      behalf of any parry, which are not embodied herein, and that no other agreement,
      statement or promise not contained herein shall be relied upon or be valid
      or
      binding. This Agreement may not be modified or amended by oral agreements,
      but
      only by an agreement in writing signed by the Company, on the one hand, and
      by
      Executive, on the other hand.

     

    (g) If
      any
      legally actionable controversy, claim or dispute arises, which cannot be
      resolved by mutual discussion between Executive and the Company, each agrees
      to
      resolve that dispute through binding arbitration before an arbitrator
      experienced in employment law. The arbitration shall be conducted by a single
      arbitrator, in Riverside County, California, administered by the American
      Arbitration Association under its employment arbitration rules. The Company
      and
      Executive further agree that this agreement includes any disputes that the
      Company may have against Executive, or that Executive may have against the
      Company and/or its related entities and/or employees, arising out of or relating
      to Executive’s employment or termination of employment or this Agreement or the
      breach, termination, enforcement, interpretation or validity thereof, including
      determination of the scope or applicability of this agreement to arbitrate.
      This
      agreement to arbitrate includes all common law and statutory claims that may
      arise from the Agreement or termination of the Agreement, including but not
      limited to, claims for breach of contract, breach of an implied covenant of
      good
      faith and fair dealing, wrongful termination, failure to pay wages or other
      compensation, and harassment, discrimination or retaliation in alleges violation
      of state and/or federal discrimination statutes. The Company and Executive
      further agree that this is the exclusive and binding remedy for all such
      disputes and will be used instead of any court action, which is hereby expressly
      waived, except for any request by either party for temporary or preliminary
      injunctive relief pending arbitration in accordance with applicable law or
      an
      administrative claim with an administrative agency. Judgment on the award
      rendered by the arbitrator may be entered in any court having competent
      jurisdiction. 

     

    
      
         

      

      
        -
          9 -

        
          

        

      

      
         

      

    

    (h) This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original for all purposes. This Agreement may be executed by a party’s
      signature transmitted by facsimile (“fax”), and copies of this Agreement
      executed and delivered by means of faxed signatures shall have the same force
      and effect as copies hereof executed and delivered with original signatures.
      All
      parties hereto agree that a faxed signature page may be introduced into evidence
      in any proceeding arising out of or related to this Agreement as if it were
      an
      original signature page.

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      and delivered as of the date first above written. 

     

    By:
      /s/
      Charles C. McGettigan

    Charles
      C. McGettigan

    Chairman
      of the Board, Modtech Holdings, Inc.

     

     

    By:
      /s/
      Dennis L. Shogren

    Dennis
      L.
      Shogren

    President
      and Chief Executive Officer, Modtech Holdings, Inc.

     

    .

    
      
         

      

      
        -
          10 -

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A

     

    COMPENSATION,
      BENEFITS AND VACATION

     

    Base
      Salary:
      During
      the Term, the Company shall pay Executive a base salary at the annual rate
      of
      not less than $345,000. Base salary shall be payable in accordance with the
      usual payroll practices of the Company. Executive's base salary shall be subject
      to annual review by the Board or the Company's Compensation Committee
      ("Compensation Committee) during the Term and may be increased, but not
      decreased, from time to time by the Board or the Compensation Committee. The
      base salary as determined as aforesaid from time to time shall constitute "Base
      Salary" for purposes of this Agreement.

    

    Incentive
      Compensation:
      

    

    (a)
      Bonus:
      In
      addition to the Base Salary above, Executive shall be eligible to participate
      in
      any annual bonus plans, including incentive, performance and discretionary,
      the
      Company may implement at any time during the Term for senior executives at
      a
      level commensurate with his position. 

    

    (b)
      Equity
      Compensation:
      Subject
      to any required stockholder approval and in accordance with the Company's 2002
      Stock Option Plan, as amended, Executive shall be entitled to a grant of 65,144
      shares of restricted stock which will vest on July 1, 2008, a grant of 68,876
      shares of restricted stock which will vest on July 1, 2009 and a grant of 71,098
      shares of restricted stock which will vest on July 1, 2010. There shall be
      no
      partial vesting of the shares in any of the three grants prior to their vesting
      dates. Executive shall have no rights of ownership in any of the shares in
      any
      grant prior to the vesting date for such grant and Executive shall forfeit
      all
      rights to the shares in any grant if Executive's employment with the Company
      terminates for any reason, except change of control as defined in the employment
      agreement, with or without cause, prior to the vesting date for such grant.
      

    

    Executive
      shall be eligible to participate at a level commensurate with his position
      in
      such other equity compensation programs including, without limitation, stock
      option grants or additional grants of restricted stock as the Board or
      Compensation Committee may determine.

    

    (c)
      Automobile Allowance. During the term of this Agreement, Executive will receive
      an automobile allowance of $800.00 per month, plus fuel.

    

    (d)
      Long
      Term Compensation. For each fiscal year or portion thereof during the Term,
      Executive shall be eligible to participate in any long-term incentive
      compensation plan generally made available to senior executives of the Company
      at a level commensurate with his position in accordance with and subject to
      the
      terms of such plan. 

    

    (e)
      Other
      Compensation. The Company may, upon recommendation of the Compensation
      Committee, award to the Executive such other bonuses and compensation as it
      deems appropriate and reasonable. 

    

    Employee
      Benefits and Vacation: 

    

    (a)
      During the Term, Executive shall be entitled to participate in all benefit
      plans
      and arrangements and fringe benefits and perquisite programs generally provided
      to comparable senior executives of the Company. 

    

    (b)
      During the Term, Executive shall be entitled to vacation each year in accordance
      with the Company's policies in effect from time to time, but in no event less
      than four (4) weeks paid vacation per calendar year. The Executive shall also
      be
      entitled to such periods of sick leave as is customarily provided by the Company
      for its senior executive employees.

    

    
      
         

      

      
        A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]