Document:

Modtech, Inc.'s 1996 Stock Option Plan

 Exhibit 10.2 
  
 MODTECH, INC. 
  
 1996 STOCK OPTION PLAN 
  
 1. PURPOSE. The Plan is intended to provide incentive to key employees and directors of, and key consultants, vendors, customers, and others
expected to provide significant services to, the Corporation, to encourage proprietary interest in the Corporation, to encourage such key employees to remain in the employ of the Corporation and its Subsidiaries, to attract new employees with
outstanding qualifications, and to afford additional incentive to consultants, vendors, customers, and others to increase their efforts in providing significant services to the Corporation. 
  
 2. DEFINITIONS. 
  
 (a) “Board” shall mean the Board of Directors of the Corporation.

  
 (b) “Code” shall mean the Internal Revenue Code of
1986, as amended. 
  
 (c) “Committee” shall mean the
committee, if any, appointed by the Board in accordance with Section 4 of the Plan. 
  
 (d) “Common Stock” shall mean the Common Stock, $.01 par value, of the Corporation. 
  
 (e) “Corporation” shall mean Modtech, Inc., a California corporation. 
  
 (f) “Disability” shall mean the condition of an Employee who is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months. 
  
 (g) “Employee” shall mean an individual who is employed (within the
meaning of Code Section 3401 and the regulations thereunder) by the Corporation or a Subsidiary. 

 (h) “Exercise Price” shall mean the price per Share of Common Stock, determined by the Board or
the Committee, at which an Option may exercised. 
  
 (i)
“Fair Market Value” shall mean the value of one (1) Share of Common Stock, determined as follows: 
  

	 	(1)	If the Shares are traded on an exchange, the price at which Shares traded at the close of business on the date of valuation; 

  

	 	(2)	If the Shares are traded over-the-counter on the NASDAQ System, the closing price if one is available, or the mean between the bid and asked prices on said System at the close of
business on the date of valuation; and 

  

	 	(3)	If neither (1) nor (2) applies, the fair market value as determined by the Board or the Committee in good faith. Such determination shall be conclusive and binding on all persons.

  
 (j) “Incentive Stock Option” shall
mean an option described in Section 422A(b) of the Code; provided, however, that no Incentive Stock Option can be granted hereunder unless and until the Plan has been approved by the shareholders of the Corporation. 
  
 (k) “Non-Employee Director” shall mean a member of the Board who is
not an Employee. 
  
 (l) “Nonstatutory Stock Option”
shall mean an option not described in Section 422(b), 422A(b), 423(b) or 424(b) of the Code. 
  
 (m) “Option” shall mean any stock granted pursuant to the Plan. 
  
 (n) “Optionee” shall mean an employee who has received an Option. 
  
 (o) “Plan” shall mean the Modtech, Inc. 1996 Stock Option Plan, as it may be amended from time to time.

 (p) “Purchase Price” shall mean the Exercise Price times the number of Shares with respect to
which an Option is exercised. 
  
 (q) “Retirement” shall
mean the voluntary termination of employment by an Employee upon the attainment of age sixty-five (65) and the completion of not less than twenty (20) years of service with the Corporation or a Subsidiary. 
  
 (r) “Share” shall mean one (1) share of Common Stock, adjusted in
accordance with Section 10 of the Plan (if applicable). 
  
 (s)
“Subsidiary” shall mean any corporation at least fifty percent (50%) of the total combined voting power of which is owned by the Corporation or by another Subsidiary. 
  
 3. EFFECTIVE DATE. The Plan was adopted by the Board on July 11, 1996, which shall be the Effective Date of the Plan.

  
 4. ADMINISTRATION. The Plan shall be administered by
the Board, or by a committee appointed by the Board which shall consist of not less than three (3) members (the “Committee”). The Board shall appoint one of the members of the Committee, if there be one, as Chairman of the Committee. If a
Committee has been appointed, the Committee shall hold meetings at such times and places as it may determine. Acts of a majority of the Committee at which a quorum is present, or acts reduced to or approved in writing by a majority of the members of
the Committee, shall be the valid acts of the Committee. The Board, or the Committee if there be one, shall from time to time at its discretion select the Employees, directors and consultants who are to be granted Options, determine the number of
Shares to be granted to each Optionee and designate such Options such as Incentive Stock Options or Nonstatutory Stock Options, except that no Incentive Stock Option may be granted to a non-Employee director or a non-Employee consultant. No member
of the Board or a Committee member shall in no event participate in any determination relating to Options held by or to be granted to such Board or Committee member. The interpretation and construction by the Board, or by the Committee if there be
one, of any provision of the Plan or of any Option granted thereunder shall be final. No member of the Board or of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Option granted
thereunder. 
  
 5. ELIGIBILITY AND PARTICIPATION.

  
 (a) Eligibility. The Optionees shall be such persons
as the Board, or the Committee if there be one, may select from among the following classes of persons, subject to the terms and conditions of (b) below: 
  

	 	(i)	Employees of the Corporation or of a Subsidiary (who may be officers, whether or not they are directors); 

	 	(ii)	Non Employee Directors of the Corporation or of a Subsidiary; and 

  

	 	(ii)	Consultants, vendors, customers, and others expected to provide significant services to the Corporation or a Subsidiary. 

  
 For purposes of this Plan, an Optionee who is a director or a consultant,
vendor, customer, or other provider of significant services to the Corporation or a Subsidiary shall be deemed to be an Employee, and service as a director, consultant, vendor, customer, or other provider of significant services to the Corporation
or a Subsidiary shall be deemed to be employment, except that no Incentive Stock Option may be granted to a Non-Employee director or non-Employee consultant, vendor, customer, or other provider of significant services to the Corporation or a
Subsidiary, and except that no Nonstatutory Stock Option may be granted to a non-Employee consultant, vendor, customer, or other provider of significant services to the Corporation or a Subsidiary other than upon a vote of a majority of
disinterested directors finding that the value of the services rendered or to be rendered to the Corporation or a Subsidiary by such non-Employee director or non-Employee consultant, vendor, customer, or other provider of services is at least equal
to the value of the option or options granted. 
  
 (b)
Non-Employee Directors. Each Non-Employee Director who was re-elected to the Board at the Annual Meeting of Shareholders held on the Effective Date shall be granted as of the Effective Date a Nonstatutory Stock Option to purchase 5,000 Shares
for each full year of continuous service on the Board since the 1994 Annual Meeting of Shareholders. In addition, on each anniversary of the Effective Date, each Non-Employee Director automatically shall be granted a Nonstatutory Stock Option to
purchase 5,000 Shares, provided that such Non-Employee Director continues to serve on the Board as of such anniversary of the Effective Date. The Exercise Price of each Option granted pursuant to the provisions of this Section 5(b) shall be the Fair
Market Value of a Share on the date of grant. 
  
 (c)
Ten-Percent Shareholders. An Employee who owns more than ten percent (10%) of the total combined voting power of all classes of outstanding stock of the Corporation, its parent or any of its Subsidiaries shall not be eligible to receive an
Incentive Stock Option unless (i) the Exercise Price of the Shares subject to such Option is at least one hundred ten percent (110%) of the Fair Market Value of such Shares on the date of grant and (ii) such Option by its terms is not exercisable
after the expiration of five (5) years from the date of grant. 
  
 (d) Stock Ownership. For purposes of (b) above, in determining stock ownership an Employee shall be considered as owning the stock owned, directly or indirectly, by or for his brothers, sisters, spouses, ancestors and lineal
descendants. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be considered as being owned proportionately by or for its shareholders, partners or beneficiaries. Stock with respect to which such
Employee holds an Option shall not be counted. 

 (e) Outstanding Stock. For purposes of (b) above, “outstanding stock” shall include all
stock actually issued and outstanding immediately after the grant of the Option to the Optionee. “Outstanding stock” shall not include shares authorized for issue under outstanding Options held by the Optionee or by any other person.

  
 6. STOCK. The stock subject to Options granted under
the Plan shall be Shares of the Corporation’s authorized but unissued or reacquired Common Stock. The aggregate number of Shares which may be issued upon exercise of Options under the Plan shall not exceed 500,000 shares. The number of Shares
subject to Options outstanding at any time shall not exceed the number of Shares remaining available for issuance under the Plan. In the event that any outstanding Option for any reason expires or is terminated, the Shares allocable to the
unexercised portion of such Option may again be made subject to any Option. The limitations established by this Section 6 shall be subject to adjustment in the manner provided in Section 10 hereof upon the occurrence of an event specified therein.

  
 7. TERMS AND CONDITIONS OF OPTIONS. 
  
 (a) Stock Option Agreements. Options shall be evidenced by written
stock option agreements in such form as the Board, or the Committee if there be one, shall from time to time determine. Such agreements shall comply with and be subject to the terms and conditions set forth below. 
  
 (b) Number of Shares. Each Option shall state the number of Shares to
which it pertains and shall provide for the adjustment thereof in accordance with the provisions of Section 10 hereof. 

 (c) Exercise Price. Each Option shall state the Exercise Price. The Exercise Price in the case of
any Incentive Stock Option shall not be less than the Fair Market Value on the date of grant and, in the case of any Incentive Stock Option granted to an Optionee described in Section 5(b) hereof, shall not be less than one hundred ten percent
(110%) of the Fair Market Value on the date of grant. The Exercise Price in the case of any Nonstatutory Stock Option shall not be less than 85% of the Fair Market Value on the date of grant. 
  
 (d) Medium and Time of Payment. The Purchase Price shall be payable in
full in United States dollars upon the exercise of the Option; provided, however, that if the applicable Option Agreement so provides the Purchase Price may be paid (i) by the surrender of Shares in good form for transfer, owned by the person
exercising the Option and having a Fair Market Value on the date of exercise equal to the Purchase Price, or in any combination of cash and Shares, as long as the sum of the cash so paid and the Fair Market Value of the Shares so surrendered equal
the Purchase Price, (ii) by cancellation of indebtedness owed by the Corporation to the Optionee, (iii) with a full recourse promissory note executed by the Optionee, or (iv) any combination of the foregoing. The interest rate and other terms and
conditions of such note shall be determined by the Board, or the Committee if there be one. The Board, or the Committee if there be one, may require that the Optionee pledge his or her Shares to the Corporation for the purpose of securing the
payment of such note. In no event shall the stock certificate(s) representing such Shares by released to the Optionee until such note shall be been paid in full. In the event the Corporation determines that it is required to withhold state or
Federal income tax as a result of the exercise of an Option, as a condition to the exercise thereof, an Employee may be required to make arrangements satisfactory to the Corporation to enable it to satisfy such withholding requirements. 

 
 (e) Term and Nontransferability of Options. Each Option shall state
the time or times, and the conditions upon which, all or part thereof becomes exercisable. No Option shall be exercisable after the expiration of ten (10) years from the date it was granted, and no Incentive Stock Option granted to an Optionee
described in Section 5(b) hereof shall be exercisable after the expiration of five (5) years from the date it was granted. During the lifetime of the Optionee, the Option shall be exercisable only by the Optionee and shall not be assignable or
transferable. In the event of the Optionee’s death, the Option shall not be transferable. In the event of the Optionee’s death, the Option shall not be transferable by the Optionee other than by will or the laws of descent and
distribution. 
  
 (f) Termination of Employment, Except by
Death, Disability or Retirement. If an Optionee ceases to be an Employee for any reason other than his or her death, Disability or Retirement, such Optionee shall have the right, subject to the restrictions of (e) above, to exercise the Option
at any time within three months after termination of employment, but only to the extent that, at the date of termination of employment, the Optionee’s right to exercise such Option had accrued pursuant to the terms of the applicable option
agreement and had not previously been exercised; provided, however, that if the Optionee was terminated for cause (as defined in the applicable option agreement) any Option not exercised in full prior to such termination shall be canceled.
For this purpose, the employment relationship shall be treated as continuing intact while the Optionee is on military leave, sick leave or other bona fide leave of absence (to be determined in the sole discretion of the Committee). The foregoing
notwithstanding, (i) in the case of an Incentive Stock Option, employment shall not be deemed to continue beyond the ninetieth (90th) day after the Optionee’s reemployment rights are guaranteed by statute or by contract, and (ii) in the case of
a Nonstatutory Stock Option, the Board, or the Committee if there be one, may extend or otherwise modify the period of time specified herein during which the Option may be exercised following termination of Optionee’s employment. 

 (g) Death of Optionee. If an Optionee dies while an Employee, or after ceasing to be an Employee
but during the period while he or she could have exercised the Option under this Section 7, and has not fully exercised the Option, then the Option may be exercised in full, subject to the restrictions of (e) above, at any time within twelve (12)
months after the Optionee’s death, by the executors or administrators of his or her estate or by any person or persons who have acquired the Option directly from the Optionee by bequest or inheritance, but only to the extent that, at the date
of death, the Optionee’s right to exercise such Option had accrued and had not been forfeited pursuant to the terms of the applicable Option Agreement and had not previously been exercised. The foregoing notwithstanding, in the case of a
Nonstatutory Stock Option, the Board, or the Committee if there be one, may extend or otherwise modify the period of time specified herein during which the Option may be exercised following termination of Optionee’s employment. 
  
 (h) Disability of Optionee. If an Optionee ceases to be an Employee by
reason of Disability, such Optionee shall have the right, subject to the restrictions of (f) above, to exercise the Option at any time within twelve (12) months after termination of employment, but only to the extent that, at the date of termination
of employment, the Optionee’s right to exercise such Option had accrued pursuant to the terms of the applicable Option Agreement and had not previously been exercised. The foregoing notwithstanding, in the case of a Nonstatutory Stock Option,
the Board, or the Committee if there be one, may extend or otherwise modify the period of time specified herein during which the Option may be exercised following termination of Optionee’s employment. 
  
 (i) Retirement of Optionee. If an Optionee ceases to be an Employee by
reason of Retirement, such Optionee shall have the right, subject to the restrictions of (e) above, to exercise the Option at any time within three (3) months after termination of employment, but only to the extent that, at the date of termination
of employment, the Optionee’s right to exercise such Option had accrued pursuant to the terms of the applicable Option Agreement and had not previously been exercised. The foregoing notwithstanding, in the case of a Nonstatutory Stock Option,
the Board, or the Committee if there be one, may extend or otherwise modify the period of time specified herein during which the Option may be exercised following termination of Optionee’s employment. 
  
 (j) Rights as a Stockholder. An Optionee, or a transferee of an
Optionee, shall have no rights as a stockholder with respect to any Shares covered by his or her Option until the date of the issuance of a stock certificate for such Shares. No adjustment shall be made for dividends (ordinary or extraordinary,
whether in cash, securities or other property), distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as provided in Section 10 hereof. 
  
 (k) Modification, Extension and Renewal of Option. Within the
limitations of the Plan, the Board, or the Committee if there be one, may modify, extend or renew outstanding Options or accept the cancellation of outstanding Options (to the extent not previously exercised) for the granting of new Options in
substitution therefor. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, alter or impair any rights or obligations under any Option previously granted. 

 (l) Other Provisions. The stock option agreements authorized under the Plan may contain such other
provisions not inconsistent with the terms of the Plan (including, without limitation, restrictions upon the exercise of the Option) as the Board, or the Committee if there be one, shall deem advisable. 
  
 8. LIMITATION ON VALUE OF EXERCISABLE SHARES. In the case of Incentive
Stock Options granted hereunder, the aggregate Fair Market Value (determined as of the date of the grant thereof) of the Shares with respect to which Incentive Stock Options become exercisable by any employee of the Corporation for the first time
during any calendar year (under this Plan and all other plans maintained by the Corporation, its parent or its Subsidiaries) shall not exceed $100,000. 
  
 9. TERM OF PLAN. Options may be granted pursuant to the Plan until the expiration of ten (10) years from the Effective Date of the Plan.

 10. RECAPITALIZATIONS. Subject to any required action by shareholders, the number of Shares
covered by the Plan as provided in Section 6 hereof, the number of Shares covered by each outstanding Option and the Exercise Price thereof shall be proportionately adjusted for any increase of decrease in the number of issued Shares resulting from
a subdivision or consolidation of Shares or the payment of a stock dividend (but only of Common Stock) or any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Corporation. Subject to any
required action by stockholders, if the Corporation is the surviving corporation in any merger or consolidation, each outstanding Option shall pertain and apply to the securities to which a holder of the number of Shares subject to the Option would
have been entitled. In the event of a merger or consolidation in which the Corporation is not the surviving corporation, the date of exercisability of each outstanding Option shall be accelerated to a date prior to such merger or consolidation,
unless the agreement of merger or consolidation provides for the assumption of the Option by the successor to the Corporation. To the extent that the foregoing adjustments relate to securities of the Corporation, such adjustments shall be made by
the Board, or the Committee if there be one, whose determination shall be conclusive and binding on all persons. Except as expressly provided in this Section 10, the Optionee shall have no rights by reason of subdivision or consolidation of shares
of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class or by reason of any dissolution, liquidation, merger or consolidation or spin-off of assets or stock of another
corporation, and any issue by the Corporation of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise
Price of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power to the Corporation to make adjustments, reclassifications, reorganizations or changes of its capital or business
structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business assets. 
  
 11. SECURITIES LAW REQUIREMENTS. 
  
 (a) Legality of Issuance. The issuance of any Shares upon the exercise of any Option and the grant of any Option shall be contingent upon the
following: 
  
 (1) the Corporation and the
Optionee shall have taken all actions required to register the Shares under the Securities Act of 1933, as amended (the “Act”), and to qualify the Option and the Shares under any and all applicable state securities or “blue sky”
laws or regulations, or to perfect an exemption from the respective registration and qualification requirements thereof; 
  
 (2) any applicable listing requirement of any stock exchange on which the Common Stock is listed shall have been satisfied; and

  
 (3) any other applicable provision of state
of Federal law shall have been satisfied. 

 (b) Restrictions on Transfer. Regardless of whether the offering and sale of Shares under the plan
has been registered under the Act or has been registered or qualified under the securities laws of any state, the Corporation may impose restrictions on the sale, pledge or other transfer of such Shares (including the placement of appropriate
legends on stock certificates) if, in the judgment of the Corporation and its counsel, such restrictions are necessary or desirable in order to achieve compliance with the provisions of the Act, the securities laws of any state or any other law. In
the event that the sale of Shares under the Plan is not registered under the Act but an exemption is available which required an investment representation or other representation, each Optionee shall be required to represent that such Shares are
being acquired for investment, and not with a view to the sale or distribution thereof, and to make such other representations as are deemed necessary or appropriate by the Corporation and its counsel. Any determination by the Corporation and its
counsel in connection with any of the matters set forth in this Section 11 shall be conclusive and binding on all persons. Stock certificates evidencing Shares acquired under the Plan pursuant to an unregistered transaction shall bear the following
restrictive legend and such other restrictive legends as are required or deemed advisable under the provisions of any applicable law. 
  
 “THE SALE OF THE SECURITIES REPRESENTED HEREBY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”). ANY TRANSFER OF SUCH
SECURITIES WILL BE INVALID UNLESS A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO SUCH TRANSFER OR IN THE OPINION OF COUNSEL FOR THE ISSUER SUCH REGISTRATION IS UNNECESSARY IN ORDER FOR SUCH TRANSFER TO COMPLY WITH THE ACT.”

  
 (c) Registration or Qualification of Securities. The
Corporation may, but shall not be obligated to register or qualify the issuance of Options and/or the sale of Shares under the Act or any other applicable law. The Corporation shall not be obligated to take any affirmative action in order to cause
the issuance of Options or the sale of Shares under the plan to comply with any law. 
  
 (d) Exchange of Certificates. If, in the opinion of the Corporation and its counsel, any legend placed on a stock certificate representing shares sold under the Plan is no longer required, the holder of such
certificate shall be entitled to exchange such certificate for a certificate representing the same number of Shares but lacking such legend. 
  
 12. AMENDMENT OF THE PLAN. The Board may from time to time, with respect to any Shares at the time not subject to Options, suspend or discontinue
the plan or revise or amend it in any respect whatsoever, except that, if the Plan has been approved by the shareholders of the Corporation, without the approval of the Corporation’s shareholders, no such revision or amendment that has not been
approved by the Corporation’s shareholders shall: 
  
 (a)
Increase the number of Shares subject to the Plan; 

 (b) Change the designation in Section 5 hereof with respect to the classes of persons eligible to receive
Options; or 
  
 (c) Amend this Section 12 to defeat its purpose.

  
 13. APPLICATION OF FUNDS. The proceeds received by the
Corporation from the sale of Common Stock pursuant to the exercise of an Option will be used for general corporate purposes. 
  
 14. EXECUTION. To record the adoption of the Plan in the form set forth above by the Board effective as of the date specified in Section 3 above,
the Corporation has caused this Plan to be executed in the name and on behalf of the Corporation where provided below by an officer of the Corporation thereunto duly authorized. 
  

			
	MODTECH, INC.
		
	By:	 	  

	 	 	President
		
	By:	 	  

	 	 	SecretaryModtech Holdings, Inc. 1999 Stock Option Plan

 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 1,450,0001 Shares, 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. 

	1	Increased from 1,250,000 to 1,450,000 in 2002 

 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; 

  

	 	(b)	prescribe, amend and rescind rules and regulations relating to this Plan; 

  

	 	(c)	select persons to receive Awards; 

  

	 	(d)	determine the form and terms of Awards; 

  

	 	(e)	grant waivers of Plan or Award conditions; 

  

	 	(f)	determine the vesting and exercisability of Awards; 

  

	 	(g)	correct any defect, supply any omission or reconcile any inconsistency in this Plan, any Award or any Award Agreement; and 

  

	 	(h)	make all other determinations necessary or advisable for the administration of this Plan. 

 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 

 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. 

  

	 	(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. 

  

	 	(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. 

  
 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 

 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; 

  

	 	(b)	by surrender of shares of common stock of the Company that are acceptable to the Committee; 

  

	 	(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;

  

	 	(d)	by waiver of compensation due or accrued to the Participant for services rendered; 

  

	 	(e)	provided that a public market for the Company’s stock exists: 

  

	 	(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 

	 	(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 

  
 (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. 

 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. 

 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. 

 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. 

 “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; 

  

	 	(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; 

	 	(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 

  

	 	(d)	if none of the foregoing is applicable, by the Committee in good faith. 

  
 “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. 

 “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”).

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