Document:

Exhibit
        10.65

       

    

    SUBSCRIPTION
      AGREEMENT

     

    THIS
      SUBSCRIPTION AGREEMENT (“Agreement”)
      is
      made as of March 10, 2008 by and among Modtech Holdings, Inc., a Delaware
      corporation (the “Company”),
      and
      the parties set forth on the signature pages affixed hereto (each a “Buyer”
      and
      collectively the “Buyers”).

    

    1. Subject
      to the satisfaction (or waiver) of the conditions set forth in Section 2 below,
      at the "Closing"
      the
      Company shall issue and sell to each Buyer and each Buyer, severally and not
      jointly, agrees to purchase from the Company at $100.00 per share the respective
      number of shares of Series B Preferred Stock or Series C Preferred Stock
      (collectively the "Securities")
      at the
      price (the “Purchase
      Price”)
      set
      forth opposite such Buyer's name on the attached Schedule
      of Buyers (the
      “Closing”).
      The
      Series B Preferred Stock shall have an accruing dividend of 8% per year payable
      in additional shares of Series B Preferred Stock and shall be convertible into
      common stock of the Company at an initial conversion price of $0.40 per share.
      The Series C Preferred Stock shall not have an accruing dividend and shall
      be
      convertible into common stock of the Company at an initial conversion price
      which will be the higher of the Company's book value per share on February
      29,
      2008 or the closing consolidated bid price for the Company's common stock on
      The
      Nasdaq Global Market on the last trading day immediately preceding the execution
      of this Agreement. The closing consolidated bid price for the Company's common
      stock on March 7, 2008 was $0.43 and the Company's book value on February 29,
      2008 was $0.49 per share. The complete terms of the Series B Preferred Stock
      and
      Series C Preferred Stock are set forth in Exhibit
      A hereto.
      

    

    2. Subject
      to notification of satisfaction (or waiver) of the conditions to the Closing
      set
      forth below, the date and time of the Closing (the “Closing
      Date”)
      shall,
      be as is mutually agreed to by the Company and the Buyers. The Closing shall
      occur on the Closing Date at the offices of Haddan & Zepfel LLP, 500 Newport
      Center Drive, Suite 580, Newport Beach, California 92660. Unless other
      arrangements have been made, on the Closing Date, (i) each Buyer shall pay
      an
      amount equal to the Purchase Price for the Securities to be issued and sold
      to
      such Buyer at the Closing, by wire transfer of immediately available funds
      to
      the trust account of Haddan & Zepfel LLP in accordance with such law firm's
      wire instructions and such funds shall be held and disbursed by such law firm
      in
      accordance with the escrow instructions attached hereto as Exhibit
      B,
      which
      each Buyer who executes this Subscription Agreement shall be considered a party
      to, and (ii) the Company shall deliver to each Buyer, stock certificates (in
      the
      denominations as such Buyer shall request representing such number of the
      Securities which such Buyer is then purchasing (as indicated opposite such
      Buyer’s name on the attached Schedule
      of Buyers),
      duly
      executed on behalf of the Company and registered in the name of such Buyer
      or
      its designee.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      obligations of the Company to issue the Securities are subject to (i) the
      representations and warranties made by the Buyers being true and correct in
      all
      respects when made, and being true and correct in all respects on the Closing
      Date with the same force and effect as if they had been made on and as of said
      date, and (ii) each of the Buyers having delivered the Purchase Price with
      respect to the Securities being purchased by them. The obligations of the Buyers
      to purchase the Securities are subject to (i) each of the Buyers having
      delivered the Purchase Price with respect to the Securities being purchased
      by
      them, and (ii) the Company having executed the Registration Rights Agreement
      attached as
      Exhibit
      C hereto
      (the "Registration
      Rights Agreement").
      The
      Registration Rights Agreement provides that, in the event the number of shares
      to be covered by a registration statement are required to be cutback due to
      Rule
      415 under the Securities Act of 1933, the first shares to be excluded will
      be
      those purchased by officers, directors and employees of the Company pursuant
      to
      this Subscription Agreement and the next shares to be excluded will be those
      purchased by the other Buyers pursuant to this Subscription
      Agreement.

    

    3. Each
      of
      the Buyers hereby severally, and not jointly, represents and warrants to the
      Company that:

    

    3.1 Organization
      and Existence.
      Unless
      such Buyer is an individual, it is a validly existing corporation, limited
      partnership or limited liability company and has all requisite corporate,
      partnership or limited liability company power and authority to invest in the
      Securities pursuant to this Agreement. Such Buyer was not organized specifically
      for the purpose of investing in the Securities.

    

    3.2 Authorization.
      The
      execution, delivery and performance by such Buyer of this Agreement, the
      Registration Rights Agreement and all ancillary agreements to which such Buyer
      is a party have been duly authorized and each will constitute the valid and
      legally binding obligation of such Buyer, enforceable against such Buyer in
      accordance with their respective terms, subject to bankruptcy, insolvency,
      fraudulent transfer, reorganization, moratorium and similar laws of general
      applicability, relating to or affecting creditors’ rights
      generally.

    

    3.3 Purchase
      Entirely for Own Account.
      The
      Securities to be received by such Buyer hereunder will be acquired for such
      Buyer’s own account, not as nominee or agent, and not with a view to the resale
      or distribution of any part thereof in violation of the Securities Act of 1933
      (the "1933
      Act"),
      and
      such Buyer has no present intention of selling, granting any participation
      in,
      or otherwise distributing the same in violation of the 1933 Act without
      prejudice, however, to such Buyer’s right at all times to sell or otherwise
      dispose of all or any part of such Securities in compliance with applicable
      federal and state securities laws.
      Nothing
      contained herein shall be deemed a representation or warranty by such Buyer
      to
      hold the Securities for any period of time. Such Buyer is not a broker-dealer
      registered with the SEC under the Securities Exchange Act of 1934 (the
      "1934
      Act")
      or an
      entity engaged in a business that would require it to be so registered. Such
      Buyer is acquiring the Securities hereunder in the ordinary course of its
      business. If such Buyer is acting in a representative capacity on behalf or
      one
      or more funds, partnerships or managed accounts, such Buyer has the authority
      to
      make, and has made, the foregoing representations and warranties on behalf
      of
      each such fund, partnership or account, each of which shall be deemed an Buyer
      hereunder for the purposes of such representations and warranties, unless not
      otherwise treated as a purchaser under Regulation D of the 1933
      Act.

     

    
      
        
        

      

      
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    3.4 Investment
      Experience.
      Such
      Buyer acknowledges that it can bear the economic risk and complete loss of
      its
      investment in the Securities and has such knowledge and experience in financial
      or business matters that it is capable of evaluating the merits and risks of
      the
      investment contemplated hereby.

    

    3.5 Disclosure
      of Information.
      Such
      Buyer has had an opportunity to receive all information related to the Company
      requested by it and to ask questions of and receive answers from the Company
      regarding the Company, its business and the terms and conditions of the offering
      of the Securities. Such Buyer acknowledges receipt of copies of the Company's
      filings with the Securities and Exchange Commission for the last 12 months.
      Such
      Buyer understands that its investment in the Securities involves a high degree
      of risk. Such Buyer has sought such accounting, legal and tax advice as it
      has
      considered necessary to make an informed investment decision with respect to
      its
      acquisition of the Securities. 

    

    3.6 Restricted
      Securities.
      Such
      Buyer understands that the Securities are characterized as “restricted
      securities” under the U.S. federal securities laws inasmuch as they are being
      acquired from the Company in a transaction not involving a public offering
      and
      that under such laws and applicable regulations such securities may be resold
      without registration under federal and state securities laws only in certain
      limited circumstances.

    

    3.7 Legends.
      It is
      understood that, except as provided below, certificates evidencing the
      Securities may bear the following or any similar legend:

    

    (a) “The
      securities represented by this certificate have not been registered under the
      Securities Act of 1933, as amended, or applicable state securities laws. The
      securities represented hereby have been acquired for investment and may not
      be
      transferred unless (i) such securities have been registered for sale pursuant
      to
      the Securities Act of 1933, as amended and applicable state securities laws,
      (ii) such securities may be sold pursuant to Rule 144(k)(or a successor rule),
      or (iii) the Company has received an opinion of counsel reasonably satisfactory
      to it that such transfer may lawfully be made without registration under the
      Securities Act of 1933 or qualification under applicable state securities
      laws.”

    

    (b) If
      required by the authorities of any state in connection with the issuance of
      sale
      of the Securities, the legend required by such state authority.

    

    3.8 Accredited
      Buyer.
      Such
      Buyer is an accredited Buyer as defined in Rule 501(a) of Regulation D, as
      amended, under the 1933 Act.

     

    
      
        
        

      

      
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    3.9 No
      General Solicitation.
      Such
      Buyer did not learn of the investment in the Securities as a result of any
      general solicitation or general advertising.

    

    3.10 Brokers
      and Finders.
      No
      person or entity will have, as a result of the transactions contemplated by
      this
      Agreement, any valid right, interest or claim against or upon the Company,
      any
      "Subsidiary" of the Company (as hereinafter defined), or any Buyer for any
      commission, fee or other compensation pursuant to any agreement, arrangement
      or
      understanding entered into by or on behalf of such Buyer.

    

    3.11.
      Ownership.
      Such
      Buyer will not become the beneficial owner (as such term is defined in Rule
      13d-3 under the 1934 Act) of more than 19.9% of the outstanding common stock
      or
      voting power of the Company as a result of the transaction contemplated
      hereby.

    

    3.12 Reliance
      on Exemptions; No Governmental Review.
      Such
      Buyer understands that the Securities are being offered and sold to it in
      reliance on specific exemptions from the registration requirements of United
      States federal and state securities laws and that the Company is relying in
      part
      on the truth and accuracy of, and such Buyer’s compliance with, the
      representations, warranties, agreements, acknowledgments and understandings
      of
      such Buyer set forth herein in order to determine the availability of such
      exemptions and the eligibility of such Buyer to acquire the Securities. Such
      Buyer understands that no United States federal or state agency or any other
      government or governmental agency has passed on or made any recommendation
      or
      endorsement of the Securities or the fairness or suitability of the investment
      in the Securities nor have such authorities passed upon or endorsed the merits
      of the offering of the Securities.

    

    4. Representations
      and Warranties of the Company.
      The
      Company hereby represents and warrants to the Buyers that, except as set forth
      in the schedules delivered herewith (collectively, the “Disclosure
      Schedules”):

    

    4.
      1 Organization,
      Good Standing and Qualification.
      Each of
      the Company and the entities in which it owns more than 50% of the outstanding
      voting ("Subsidiaries")
      is a
      corporation duly organized, validly existing and in good standing under the
      laws
      of the jurisdiction of its incorporation and has all requisite corporate power
      and authority to carry on its business as now conducted and to own its
      properties. Each of the Company and its Subsidiaries is duly qualified to do
      business as a foreign corporation and is in good standing in each jurisdiction
      in which the conduct of its business or its ownership or leasing of property
      makes such qualification or leasing necessary unless the failure to so qualify
      has not had and could not reasonably be expected to have a material adverse
      effect on the financial condition of the Company and its Subsidiaries taken
      as a
      whole ("Material
      Adverse Effect").
      The
      Company’s Subsidiaries are listed on Schedule
      4.1
      hereto.

     

    
      
        
        

      

      
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    4.2 Authorization.
      The
      Company has full power and authority and has taken all requisite action on
      the
      part of the Company, its officers, directors and stockholders necessary for
      (i)
      the authorization, execution and delivery of this Subscription Agreement and
      the
      Registration Rights Agreement (collectively, the "Transaction
      Documents"),
      (ii)
      the authorization of the performance of all obligations of the Company hereunder
      or thereunder, and (iii) the authorization, issuance (or reservation for
      issuance) and delivery of the Securities. The Transaction Documents constitute
      the legal, valid and binding obligations of the Company, enforceable against
      the
      Company in accordance with their terms, subject to bankruptcy, insolvency,
      fraudulent transfer, reorganization, moratorium and similar laws of general
      applicability, relating to or affecting creditors’ rights
      generally.

    

    4.3 Capitalization.
       Schedule
      4.3
      sets
      forth as of the date hereof (a) the authorized capital stock of the Company,
      excluding the Securities to be authorize upon the filing of the Certificate
      of
      Determination set forth as Exhibit
      A hereto;
      (b) the
      number of shares of capital stock issued and outstanding; (c) the number of
      shares of capital stock issuable pursuant to the Company’s stock plans; and (d)
      the number of shares of capital stock issuable and reserved for issuance
      pursuant to securities (other than the Securities) exercisable for, or
      convertible into or exchangeable for any shares of capital stock of the Company.
      All of the issued and outstanding shares of the Company’s capital stock have
      been duly authorized and validly issued and are fully paid, nonassessable and
      free of pre-emptive rights and were issued in full compliance with applicable
      state and federal securities law and any rights of third parties. Except as
      described on Schedule
      4.3,
      all of
      the issued and outstanding shares of capital stock of each Subsidiary have
      been
      duly authorized and validly issued and are fully paid, nonassessable and free
      of
      pre-emptive rights, were issued in full compliance with applicable state and
      federal securities law and any rights of third parties and are owned by the
      Company, beneficially and of record, subject to no lien, encumbrance or other
      adverse claim. Except as described on Schedule
      4.3,
      no
      individual or entity (collectively, "Person")
      is
      entitled to pre-emptive or similar statutory or contractual rights with respect
      to any securities of the Company. Except as described on Schedule
      4.3,
      there
      are no outstanding warrants, options, convertible securities or other rights,
      agreements or arrangements of any character under which the Company or any
      of
      its Subsidiaries is or may be obligated to issue any equity securities of any
      kind and except as contemplated by this Agreement, neither the Company nor
      any
      of its Subsidiaries is currently in negotiations for the issuance of any equity
      securities of any kind. Except as described on Schedule
      4.3
      and
      except for the Registration Rights Agreement, there are no voting agreements,
      buy-sell agreements, option or right of first purchase agreements or other
      agreements of any kind among the Company and any of the securityholders of
      the
      Company relating to the securities of the Company held by them. Except as
      described on Schedule
      4.3
      and
      except as provided in the Registration Rights Agreement, no Person has the
      right
      to require the Company to register any securities of the Company under the
      1933
      Act, whether on a demand basis or in connection with the registration of
      securities of the Company for its own account or for the account of any other
      Person.

     

    
      
        
        

      

      
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    Except
      as
      described on Schedule
      4.3,
      the
      issuance and sale of the Securities hereunder will not obligate the Company
      to
      issue shares of Common Stock or other securities to any other Person (other
      than
      the Buyers) and will not result in the adjustment of the exercise, conversion,
      exchange or reset price of any outstanding security.

    

    Except
      as
      described on Schedule
      4.3,
      the
      Company does not have outstanding stockholder purchase rights or “poison pill”
or any similar arrangement in effect giving any Person the right to purchase
      any
      equity interest in the Company upon the occurrence of certain
      events.

    

    4.4 Valid
      Issuance.
      The
      Securities have been duly and validly authorized and, when issued and paid
      for
      pursuant to this Agreement, will be validly issued, fully paid and
      nonassessable, and shall be free and clear of all encumbrances and restrictions
      (other than those created by the Buyers), except for restrictions on transfer
      set forth in the Transaction Documents or imposed by applicable securities
      laws.

    

    4.5 Consents.
      The
      execution, delivery and performance by the Company of the Transaction Documents
      and the offer, issuance and sale of the Securities require no consent of, action
      by or in respect of, or filing with, any Person, governmental body, agency,
      or
      official other than filings that have been made pursuant to applicable state
      securities laws and post-sale filings pursuant to applicable state and federal
      securities laws which the Company undertakes to file within the applicable
      time
      periods. Subject to the accuracy of the representations and warranties of each
      Buyer set forth in Section 5 hereof, the Company has taken all action necessary
      to exempt (i) the issuance and sale of the Securities and (ii) the other
      transactions contemplated by the Transaction Documents from the provisions
      of
      any stockholder rights plan or other “poison pill” arrangement, any
      anti-takeover, business combination or control share law or statute binding
      on
      the Company or to which the Company or any of its assets and properties may
      be
      subject and any provision of the Company’s Certificate of Incorporation or
      Bylaws that is or could reasonably be expected to become applicable to the
      Buyers as a result of the transactions contemplated hereby, including without
      limitation, the issuance of the Securities and the ownership, disposition or
      voting of the Securities by the Buyers or the exercise of any right granted
      to
      the Buyers pursuant to this Agreement or the other Transaction
      Documents.

    

    4.6 Delivery
      of SEC Filings; Business.
      The
      Company has made available to the Buyers through the EDGAR system, true and
      complete copies of the Company’s most recent Annual Report on Form 10-K for the
      fiscal year ended December 31, 2006 (the “10-K”),
      and
      all other reports filed by the Company pursuant to the 1934 Act since the filing
      of the 10-K and prior to the date hereof (collectively, the “SEC
      Filings”).
      The
      SEC Filings are the only filings required of the Company pursuant to the 1934
      Act for such period. The Company and its Subsidiaries are engaged in all
      material respects only in the business described in the SEC Filings and the
      SEC
      Filings contain a complete and accurate description in all material respects
      of
      the business of the Company and its Subsidiaries, taken as a whole.

     

    
      
        
        

      

      
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    4.7 Use
      of
      Proceeds.
      The net
      proceeds of the sale of the Securities shall be used by the Company for working
      capital and general corporate purposes.

    

    4.8 No
      Material Adverse Change.
      Since
      December 31, 2006, except as identified and described in the SEC Filings or
      as
      described on Schedule
      4.8,
      there
      has not been:

    

    (i) any
      change in the consolidated assets, liabilities, financial condition or operating
      results of the Company from that reflected in the financial statements included
      in the Company’s Quarterly Report on Form 10-Q for the quarter ended September
      30, 2007, except for changes in the ordinary course of business which have
      not
      had and could not reasonably be expected to have a Material Adverse Effect,
      individually or in the aggregate;

    

    (ii) any
      declaration or payment of any dividend, or any authorization or payment of
      any
      distribution, on any of the capital stock of the Company, or any redemption
      or
      repurchase of any securities of the Company;

    

    (iii) any
      material damage, destruction or loss, whether or not covered by insurance to
      any
      assets or properties of the Company or its Subsidiaries;

    

    (iv) any
      waiver, not in the ordinary course of business, by the Company or any Subsidiary
      of a material right or of a material debt owed to it;

    

    (v) any
      satisfaction or discharge of any lien, claim or encumbrance or payment of any
      obligation by the Company or a Subsidiary, except in the ordinary course of
      business and which is not material to the assets, properties, financial
      condition, operating results or business of the Company and its Subsidiaries
      taken as a whole (as such business is presently conducted and as it is proposed
      to be conducted);

    

    (vi) other
      than the filing of the Certificate of Determination set forth as Exhibit A
      hereto, any change or amendment to the Company's Certificate of Incorporation
      or
      Bylaws, or material change to any material contract or arrangement by which
      the
      Company or any Subsidiary is bound or to which any of their respective assets
      or
      properties is subject;

    

    (vii) any
      material labor difficulties or labor union organizing activities with respect
      to
      employees of the Company or any Subsidiary;

    

    (viii) any
      material transaction entered into by the Company or a Subsidiary other than
      in
      the ordinary course of business; 

    

    (ix) the
      loss
      of the services of any key employee, or material change in the composition
      or
      duties of the senior management of the Company or any Subsidiary;

     

    
      
        
        

      

      
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    (x) the
      loss
      or threatened loss of any customer which has had or could reasonably be expected
      to have a Material Adverse Effect; or

    

    (xi) any
      other
      event or condition of any character that has had or could reasonably be expected
      to have a Material Adverse Effect.

    

    4.9 SEC
      Filings; S-3 Eligibility.

    

    (a) At
      the
      time of filing thereof, the SEC Filings complied as to form in all material
      respects with the requirements of the 1934 Act and did not contain any untrue
      statement of a material fact or omit to state any material fact necessary in
      order to make the statements made therein, in the light of the circumstances
      under which they were made, not misleading.

    

    (b) Each
      registration statement and any amendment thereto filed by the Company since
      January 1, 2005 pursuant to the 1933 Act and the rules and regulations
      thereunder, as of the date such statement or amendment became effective,
      complied as to form in all material respects with the 1933 Act and did not
      contain any untrue statement of a material fact or omit to state any material
      fact required to be stated therein or necessary in order to make the statements
      made therein not misleading; and each prospectus filed pursuant to Rule 424(b)
      under the 1933 Act, as of its issue date and as of the closing of any sale
      of
      securities pursuant thereto did not contain any untrue statement of a material
      fact or omit to state any material fact required to be stated therein or
      necessary in order to make the statements made therein, in the light of the
      circumstances under which they were made, not misleading.

    

    (c) The
      Company is eligible to use Form S-3 to register the Registrable Securities
      (as
      such term is defined in the Registration Rights Agreement) for sale by the
      Buyers as contemplated by the Registration Rights Agreement.

    

    4.10 No
      Conflict, Breach, Violation or Default.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the issuance and sale of the Securities will not conflict with or result
      in
      a breach or violation of any of the terms and provisions of, or constitute
      a
      default under (i) the Company’s Certificate of Incorporation or the Company’s
      Bylaws, both as in effect on the date hereof (true and complete copies of which
      have been made available to the Buyers through the EDGAR system), or (ii)(a)
      any
      statute, rule, regulation or order of any governmental agency or body or any
      court, domestic or foreign, having jurisdiction over the Company, any Subsidiary
      or any of their respective assets or properties, or (b) any agreement or
      instrument to which the Company or any Subsidiary is a party or by which the
      Company or a Subsidiary is bound or to which any of their respective assets
      or
      properties is subject.

     

    
      
        
        

      

      
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    4.11 Tax
      Matters.
      The
      Company and each Subsidiary has timely prepared and filed all tax returns
      required to have been filed by the Company or such Subsidiary with all
      appropriate governmental agencies and timely paid all taxes shown thereon or
      otherwise owed by it. The charges, accruals and reserves on the books of the
      Company in respect of taxes for all fiscal periods are adequate in all material
      respects, and there are no material unpaid assessments against the Company
      or
      any Subsidiary nor, to the actual knowledge of the Company’s executive officers
      (the "Company's
      Knowledge"),
      any
      basis for the assessment of any additional taxes, penalties or interest for
      any
      fiscal period or audits by any federal, state or local taxing authority except
      for any assessment which is not material to the Company and its Subsidiaries,
      taken as a whole. All taxes and other assessments and levies that the Company
      or
      any Subsidiary is required to withhold or to collect for payment have been
      duly
      withheld and collected and paid to the proper governmental entity or third
      party
      when due. There are no tax liens or claims pending or, to the Company’s
      Knowledge, threatened against the Company or any Subsidiary or any of their
      respective assets or property. Except as described on Schedule
      4.11,
      there
      are no outstanding tax sharing agreements or other such arrangements between
      the
      Company and any Subsidiary or other corporation or entity.

    

    4.12 Title
      to Properties.
      Except
      as disclosed in the SEC Filings and Schedule
      4.12,
      the
      Company and each Subsidiary has good and marketable title to all real properties
      and all other properties and assets owned by it, in each case free from liens,
      encumbrances and defects that would materially affect the value thereof or
      materially interfere with the use made or currently planned to be made thereof
      by them; and except as disclosed in the SEC Filings, the Company and each
      Subsidiary holds any leased real or personal property under valid and
      enforceable leases with no exceptions that would materially interfere with
      the
      use made or currently planned to be made thereof by them.

    

    4.13 Certificates,
      Authorities and Permits.
      The
      Company and each Subsidiary possess adequate certificates, authorities or
      permits issued by appropriate governmental agencies or bodies necessary to
      conduct the business now operated by it, and neither the Company nor any
      Subsidiary has received any notice of proceedings relating to the revocation
      or
      modification of any such certificate, authority or permit that, if determined
      adversely to the Company or such Subsidiary, could reasonably be expected to
      have a Material Adverse Effect, individually or in the aggregate.

    

    4.14 Labor
      Matters.

     

    (a) Except
      as
      set forth on Schedule
      4.14,
      the
      Company is not a party to or bound by any collective bargaining agreements
      or
      other agreements with labor organizations. The Company has not violated in
      any
      material respect any laws, regulations, orders or contract terms, affecting
      the
      collective bargaining rights of employees, labor organizations or any laws,
      regulations or orders affecting employment discrimination, equal opportunity
      employment, or employees’ health, safety, welfare, wages and hours.

     

    
      
        
        

      

      
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    (b) Except
      as
      set forth on Schedule
      4.14,
      (i)
      there are no labor disputes existing, or to the Company's Knowledge, threatened,
      involving strikes, slow-downs, work stoppages, job actions, disputes, lockouts
      or any other disruptions of or by the Company's employees, (ii) there are no
      unfair labor practices or petitions for election pending or, to the Company's
      Knowledge, threatened before the National Labor Relations Board or any other
      federal, state or local labor commission relating to the Company's employees,
      (iii) no demand for recognition or certification heretofore made by any labor
      organization or group of employees is pending with respect to the Company and
      (iv) to the Company's Knowledge, the Company enjoys good labor and employee
      relations with its employees and labor organizations.

     

    (c) The
      Company is, and at all times has been, in compliance in all material respects
      with all applicable laws respecting employment (including laws relating to
      classification of employees and independent contractors) and employment
      practices, terms and conditions of employment, wages and hours, and immigration
      and naturalization. Except as set forth in Schedule
      4.14,
      There
      are no claims pending against the Company before the Equal Employment
      Opportunity Commission or any other administrative body or in any court
      asserting any violation of Title VII of the Civil Rights Act of 1964, the Age
      Discrimination Act of 1967, 42 U.S.C. §§ 1981 or 1983 or any other federal,
      state or local law, statute or ordinance barring discrimination in
      employment.

     

    (d) Except
      as
      disclosed in the SEC Filings or as described on Schedule
      4.14,
      the
      Company is not a party to, or bound by, any employment or other contract or
      agreement that contains any severance, termination pay or change of control
      liability or obligation, including, without limitation, any “excess parachute
      payment,” as defined in Section 280G(b) of the Internal Revenue
      Code.

    

    (e) Except
      as
      specified in Schedule
      4.14,
      to the
      Company’s Knowledge each of the Company's employees is a Person who is either a
      United States citizen or a permanent resident entitled to work in the United
      States. To the Company's Knowledge, the Company has no liability for the
      improper classification by the Company of such employees as independent
      contractors or leased employees prior to the Closing.

    

    4.15 Intellectual
      Property.

    

    (a) All
      of
      the Company's and its Subsidiaries (i) patents, patent applications, patent
      disclosures and inventions; (ii) trademarks, service marks, trade dress, trade
      names, corporate names, logos, slogans and Internet domain names, together
      with
      all goodwill associated with each of the foregoing; (iii) copyrights and
      copyrightable works; (iv) registrations, applications and renewals for any
      of
      the foregoing; and (v) proprietary computer software (including but not limited
      to data, data bases and documentation) (collectively "Intellectual
      Property")
      is
      currently in compliance with all legal requirements (including timely filings,
      proofs and payments of fees) and is valid and enforceable. No Intellectual
      Property of the Company or its Subsidiaries which is necessary for the conduct
      of Company’s and each of its Subsidiaries’ respective businesses as currently
      conducted or as currently proposed to be conducted has been or is now involved
      in any cancellation, dispute or litigation, and, to the Company’s Knowledge, no
      such action is threatened. No patent of the Company or its Subsidiaries has
      been
      or is now involved in any interference, reissue, re-examination or opposition
      proceeding.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (b) All
      of
      the licenses and sublicenses and consent, royalty or other agreements concerning
      Intellectual Property which are necessary for the conduct of the Company’s and
      each of its Subsidiaries’ respective businesses as currently conducted or as
      currently proposed to be conducted to which the Company or any Subsidiary is
      a
      party or by which any of their assets are bound (other than  generally
      commercially available, non-custom, off-the-shelf software application programs
      having a retail acquisition price of less than $10,000 per license)
      (collectively, “License
      Agreements”)
      are
      valid and binding obligations of the Company or its Subsidiaries that are
      parties thereto and, to the Company’s Knowledge, the other parties thereto,
      enforceable in accordance with their terms, except to the extent that
      enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
      moratorium, fraudulent conveyance or other similar laws affecting the
      enforcement of creditors’ rights generally, and there exists no event or
      condition which will result in a material violation or breach of or constitute
      (with or without due notice or lapse of time or both) a default by the Company
      or any of its Subsidiaries under any such License Agreement.

    

    (c) The
      Company and its Subsidiaries own or have the valid right to use all of the
      Intellectual Property that is necessary for the conduct of the Company’s and
      each of its Subsidiaries’ respective businesses as currently conducted or as
      currently proposed to be conducted and for the ownership, maintenance and
      operation of the Company’s and its Subsidiaries’ properties and assets, free and
      clear of all liens, encumbrances, adverse claims or obligations to license
      all
      such owned Intellectual Property and trade secrets, confidential information
      and
      confidential know-how (collectively "Confidential
      Information"),
      other
      than licenses entered into in the ordinary course of the Company’s and its
      Subsidiaries’ businesses. The Company and its Subsidiaries have a valid and
      enforceable right to use all third party Intellectual Property and Confidential
      Information used or held for use in the respective businesses of the Company
      and
      its Subsidiaries.

    

    (d) The
      conduct of the Company’s and its Subsidiaries’ businesses as currently conducted
      does not infringe or otherwise impair or conflict with (collectively,
“Infringe”)
      any
      Intellectual Property rights of any third party or any confidentiality
      obligation owed to a third party, and, except as described in Schedule
      4.15,
      to the
      Company’s Knowledge, the Intellectual Property and Confidential Information of
      the Company and its Subsidiaries which are necessary for the conduct of
      Company’s and each of its Subsidiaries’ respective businesses as currently
      conducted or as currently proposed to be conducted are not being Infringed
      by
      any third party. There is no litigation or order pending or outstanding or,
      to
      the Company’s Knowledge, threatened or imminent, that seeks to limit or
      challenge or that concerns the ownership, use, validity or enforceability of
      any
      Intellectual Property or Confidential Information of the Company and its
      Subsidiaries and the Company’s and its Subsidiaries’ use of any Intellectual
      Property or Confidential Information owned by a third party, and, to the
      Company’s Knowledge, there is no valid basis for the same.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (e) The
      consummation of the transactions contemplated hereby and by the other
      Transaction Documents will not result in the alteration, loss, impairment of
      or
      restriction on the Company’s or any of its Subsidiaries’ ownership or right to
      use any of the Intellectual Property or Confidential Information which is
      necessary for the conduct of Company’s and each of its Subsidiaries’ respective
      businesses as currently conducted or as currently proposed to be
      conducted.

    

    (f) The
      Company and its Subsidiaries have taken reasonable steps to protect the
      Company’s and its Subsidiaries’ rights in their Intellectual Property and
      Confidential Information. Each employee, consultant and contractor who has
      had
      access to Confidential Information which is necessary for the conduct of
      Company’s and each of its Subsidiaries’ respective businesses as currently
      conducted or as currently proposed to be conducted has executed an agreement
      to
      maintain the confidentiality of such Confidential Information and has executed
      appropriate agreements that are substantially consistent with the Company’s
      standard forms thereof. Except under confidentiality obligations, there has
      been
      no material disclosure of any of the Company’s or its Subsidiaries’ Confidential
      Information to any third party.

    

    4.16 Environmental
      Matters.
      Except
      as described on Schedule
      4.16,
      neither
      the Company nor any Subsidiary is in material violation of any statute, rule,
      regulation, decision or order of any governmental agency or body or any court,
      domestic or foreign, relating to the use, disposal or release of hazardous
      or
      toxic substances or relating to the protection or restoration of the environment
      or human exposure to hazardous or toxic substances (collectively, “Environmental
      Laws”),
      owns
      or operates any real property contaminated with any substance that is subject
      to
      any Environmental Laws, is liable for any off-site disposal or contamination
      pursuant to any Environmental Laws, or is subject to any claim relating to
      any
      Environmental Laws, which violation, contamination, liability or claim has
      had
      or could reasonably be expected to have a Material Adverse Effect, individually
      or in the aggregate; and there is no pending or, to the Company’s Knowledge,
      threatened investigation that might lead to such a claim.

    

    4.17 Litigation.
      Except
      as described on Schedule
      4.17,
      there
      are no pending actions, suits or proceedings against or affecting the Company,
      its Subsidiaries or any of its or their properties; and to the Company’s
      Knowledge, no such actions, suits or proceedings are threatened or contemplated.
      Neither the Company nor any Subsidiary, nor any director or officer thereof,
      is
      or since January 1, 2003 has been the subject of any action involving a claim
      of
      violation of or liability under federal or state securities laws or a claim
      of
      breach of fiduciary duty. There has not been, and to the Company’s Knowledge,
      there is not pending or contemplated, any investigation by the Securities and
      Exchange Commission ("SEC")
      involving the Company or any current or former director or officer of the
      Company. The SEC has not issued any stop order or other order suspending the
      effectiveness of any registration statement filed by the Company or any
      Subsidiary under the 1933 Act or the 1934 Act.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    4.18 Financial
      Statements.
      The
      financial statements included in each SEC Filing present fairly, in all material
      respects, the consolidated financial position of the Company as of the dates
      shown and its consolidated results of operations and cash flows for the periods
      shown, and such financial statements have been prepared in conformity with
      United States generally accepted accounting principles applied on a consistent
      basis (“GAAP”)
      (except as may be disclosed therein or in the notes thereto, and, in the case
      of
      quarterly financial statements, as permitted by Form 10-Q under the 1934 Act).
      Except as set forth in the financial statements of the Company included in
      the
      SEC Filings filed prior to the date hereof or as described on Schedule
      4.18,
      neither
      the Company nor any of its Subsidiaries has incurred any liabilities, contingent
      or otherwise, except those incurred in the ordinary course of business,
      consistent (as to amount and nature) with past practices since the date of
      such
      financial statements, none of which, individually or in the aggregate, have
      had
      or could reasonably be expected to have a Material Adverse Effect.

    

    4.19 Insurance
      Coverage.
      The
      Company and each Subsidiary maintains in full force and effect insurance
      coverage that is customary for comparably situated companies for the business
      being conducted and properties owned or leased by the Company and each
      Subsidiary, and the Company reasonably believes such insurance coverage to
      be
      adequate against all liabilities, claims and risks against which it is customary
      for comparably situated companies to insure.

    

    4.20 Compliance
      with Nasdaq Continued Listing Requirements.
      Except
      as described in the SEC Filings or on Schedule
      4.20,
      (i) the
      Company is in compliance with applicable continued listing requirements of
      The
      Nasdaq Global Market or The Nasdaq Capital Market ("Nasdaq"),
      (ii)
      there are no proceedings pending or, to the Company’s Knowledge, threatened
      against the Company relating to the continued listing of the Common Stock on
      Nasdaq and (iii) the Company has not received any notice of, nor to the
      Company’s Knowledge is there any basis for, the delisting of the Common Stock
      from Nasdaq.

    

    4.21 Brokers
      and Finders.
      No
      Person will have, as a result of the transactions contemplated by the
      Transaction Documents, any valid right, interest or claim against or upon the
      Company, any Subsidiary or a Buyer for any commission, fee or other compensation
      pursuant to any agreement, arrangement or understanding entered into by or
      on
      behalf of the Company, other than as described in Schedule
      4.21.

    

    4.22 No
      Directed Selling Efforts or General Solicitation.
      Neither
      the Company nor any Person acting on its behalf has conducted any general
      solicitation or general advertising (as those terms are used in Regulation
      D) in
      connection with the offer or sale of any of the Securities.

    

    4.23 No
      Integrated Offering.
      Neither
      the Company nor any of its Affiliates, nor any Person acting on its or their
      behalf has, directly or indirectly, made any offers or sales of any Company
      security or solicited any offers to buy any security, under circumstances that
      would adversely affect reliance by the Company on Section 4(2) of the 1933
      Act
      for the exemption from registration for the transactions contemplated hereby
      or
      would require registration of the Securities under the 1933 Act.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    4.24 Private
      Placement.
      Subject
      to the accuracy of the representations and warranties of the Buyers set forth
      in
      Section 3, the offer and sale of the Securities to the Buyers as contemplated
      hereby is exempt from the registration requirements of the 1933
      Act.

    

    4.25 Questionable
      Payments.
      Neither
      the Company nor any of its Subsidiaries nor, to the Company’s Knowledge, any of
      their respective current or former stockholders, directors, officers, employees,
      agents or other Persons acting on behalf of the Company or any Subsidiary,
      has
      on behalf of the Company or any Subsidiary or in connection with their
      respective businesses: (a) used any corporate funds for unlawful contributions,
      gifts, entertainment or other unlawful expenses relating to political activity;
      (b) made any direct or indirect unlawful payments to any governmental officials
      or employees from corporate funds; (c) established or maintained any unlawful
      or
      unrecorded fund of corporate monies or other assets; (d) made any false or
      fictitious entries on the books and records of the Company or any Subsidiary;
      or
      (e) made any unlawful bribe, rebate, payoff, influence payment, kickback or
      other unlawful payment of any nature.

    

    4.26 Transactions
      with Affiliates.
      Except
      as disclosed in the SEC Filings or as disclosed on Schedule
      4.26,
      none of
      the officers or directors of the Company and, to the Company’s Knowledge, none
      of the employees of the Company is presently a party to any transaction with
      the
      Company or any Subsidiary (other than as holders of stock options and/or
      warrants, and for services as employees, officers and directors), including
      any
      contract, agreement or other arrangement providing for the furnishing of
      services to or by, providing for rental of real or personal property to or
      from,
      or otherwise requiring payments to or from any officer, director or such
      employee or, to the Company’s Knowledge, any entity in which any officer,
      director, or any such employee has a substantial interest or is an officer,
      director, trustee or partner.

    

    4.27 Internal
      Controls.
      The
      Company is in material compliance with the provisions of the Sarbanes-Oxley
      Act
      of 2002 currently applicable to the Company. Except for the material weaknesses
      disclosed in the SEC Filings, the Company and the Subsidiaries maintain a system
      of internal accounting controls sufficient to provide reasonable assurance
      that
      (i) transactions are executed in accordance with management's general or
      specific authorizations, (ii) transactions are recorded as necessary to permit
      preparation of financial statements in conformity with GAAP and to maintain
      asset accountability, (iii) access to assets is permitted only in accordance
      with management's general or specific authorization, and (iv) the recorded
      accountability for assets is compared with the existing assets at reasonable
      intervals and appropriate action is taken with respect to any differences.
      The
      Company has established disclosure controls and procedures (as defined in 1934
      Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure
      controls and procedures to ensure that material information relating to the
      Company, including the Subsidiaries, is made known to the certifying officers
      by
      others within those entities, particularly during the period in which the
      Company’s most recently filed periodic report under the 1934 Act, as the case
      may be, is being prepared. The Company's certifying officers have evaluated
      the
      effectiveness of the Company's controls and procedures as of the end of the
      period covered by the most recently filed periodic report under the 1934 Act
      (such date, the "Evaluation
      Date").
      The
      Company presented in its most recently filed periodic report under the 1934
      Act
      the conclusions of the certifying officers about the effectiveness of the
      disclosure controls and procedures based on their evaluations as of the
      Evaluation Date. Since the Evaluation Date, there have been no significant
      changes in the Company's internal controls (as such term is defined in Item
      308
      of Regulation S-K) or, to the Company's Knowledge, in other factors that could
      significantly affect the Company's internal controls. The Company maintains
      and
      will continue to maintain a standard system of accounting established and
      administered in accordance with GAAP and the applicable requirements of the
      1934
      Act.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    4.28 Disclosures.
      The
      written materials delivered to the Buyers in connection with the transactions
      contemplated by the Transaction Documents do not contain any untrue statement
      of
      a material fact or omit to state a material fact necessary in order to make
      the
      statements contained therein, in light of the circumstances under which they
      were made, not misleading.

    

    5. The
      representations and warranties set forth in Sections 3 and 4 above shall survive
      the sale of the Securities to the Buyers pursuant to this Subscription
      Agreement. The Buyers and the Company agree to indemnify and hold harmless
      each
      other, and their respective officers, directors, shareholders, employees and
      agents, as the case may be, from and against any and all damages suffered and
      liabilities incurred by any of them (including costs of investigation and
      defense and attorneys' fees) arising out of any inaccuracy in their
      representations and warranties made above.  

    

    6. Each
      Buyer hereby irrevocably constitutes and appoints Kenneth Cragun and Dennis
      Shogren, and each of them acting alone, with full power of substitution, as
      his
      true and lawful attorney-in-fact with full power and authority in the Buyer's
      name, place and stead and for the Buyer's use and benefit to execute and deliver
      the Escrow Agreement attached hereto as Exhibit
      B and
      the
      Registration Rights Agreement attached hereto as Exhibit
      A. This
      power of attorney is coupled with an interest and declared to be irrevocable.
      

    

    6.
       This
      Agreement constitutes the entire agreement among the parties hereto with respect
      to the subject matter hereof and may be amended only by a writing executed
      by
      all parties. This Agreement shall be enforced, governed and construed in all
      respects in accordance with the laws of the State of California.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    WITNESS
      WHEREOF,
      the
      Buyers and the Company have caused this Subscription Agreement to be duly
      executed as of the date first written above.

    

    
      	
              COMPANY:

            
	 
	
              Modtech
                Holdings, Inc.

            
	 
	
              By:

            	
              /s/
                Dennis Shogren

            
	
              Name:  Dennis
                Shogren

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription
      Agreement to be duly executed as of the date first written above.

     

    
      	
              BUYERS:

            
	 
	
              /s/ Charles
                McGettigan

            
	
              Charles
                McGettigan

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

    

    
      	
              BUYERS:

            
	 
	
              /s/ Robert
                Campbell

            
	
              Robert
                Campbell

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

     

    
      	
              BUYERS:

            
	 
	
              /s/
                Stanley Gaines

            
	
              Stanley
                Gaines

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

    

    
      	
              BUYERS:

            
	 
	
              /s/ Daniel
                Donahoe

            
	
              Daniel
                Donahoe

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

     

    
      	
              BUYERS:

            
	 
	
              /s/
                Dennis Shogren

            
	
              Dennis
                Shogren

            
	 
	
              /s/
                Kenneth Cragun

            
	
              Kenneth
                Cragun

            
	 
	
              /s/
                Ronald Savona

            
	
              Ronald
                Savona

            
	 
	
              /s/
                Richard Bartolotti

            
	
              Richard
                Bartolotti

            
	 
	
              /s/
                Harold Clark

            
	
              Harold
                Clark

            
	 
	
              /s/
                Karen Andreasen

            
	
              Karen
                Andreasen

            
	 
	
              /s/
                Richard Von Hor

            
	
              Richard
                Von Hor

            
	 
	
              /s/
                Danny Ewing

            
	
              Danny
                Ewing

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    WITNESS
      WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

    

    
      	
              BUYERS:

            
	 
	
              /s/
                Thomas McGovern

            
	
              Thomas
                McGovern

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

     

    
      	
              BUYERS:

            
	 
	
              /s/ Kenneth
                Keska

            
	
              Kenneth
                Keska

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

     

    
      	
              BUYERS:

            
	 
	
              R
                & R Opportunity Fund

            
	 
	
              By:
                /s/ John J. Borer, III

            
	
              John
                J. Borer, III

            
	
              Authorized
                Signatory

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

     

    
      	
              BUYERS:

            
	 
	
              Dolphin
                Offshore Partners, L.P.

            
	 
	
              By:
                /s/ Peter E. Salas

            
	
              Peter
                E. Salas

            
	
              General
                Partner

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

     

    
      	
              BUYERS:

            
	 
	
              /s/ Thomas
                Peckosh

            
	
              Thomas
                Peckosh

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

     

    
      	
              BUYERS:

            
	 
	
              /s/ Charles
                R. Skemp

            
	
              Charles
                R. Skemp

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

     

    
      	
              BUYERS:

            
	 
	
              /s/ Charles
                Gwirtsman

            
	
              Charles
                Gwirtsman

            

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

     

    
      	
              BUYERS:

            
	 
	
              GCA
                Strategic Investment Fund Limited

            
	 
	
              By:
                /s/ Lewis N. Lester

            
	
              Lewis
                N. Lester

            
	
              Authorized
                Signatory

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

     

    
      	
              BUYERS:

            
	 
	
              Maythorpe
                Holdings Limited

            
	 
	
              By:
                /s/ Joel Handel

            
	
              Joel
                Handel

            
	
              Authorized
                Signatory

            

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have cause this Subscription Agreement to be duly
      executed as of the date first written above.

     

    
      	
              BUYERS:

            
	 
	
              /s/ Myron
                Wick, III

            
	
              Myron
                Wick, III

            

    

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      OF BUYERS

     

    
      	
              Buyer’s
                Name

            	 	
              Buyer’s
                Address

              and
                Facsimile Number

            	 	
              Number
                of

              Securities

            	 	
              Purchase

              Price

            	 
	 	 	 	 	 	 	 	 
	
              Charles
                McGettigan

            	 	
              McGettigan,
                Wick & Co.

              50
                Osgood Place, Penthouse

              San
                Francisco, CA 94133

              Facsimile
                # (415) 986-3617

            	 	
              588
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              58,800

            	 
	 	 	 	 	 	 	 	 	 
	
              Myron
                Wick

            	 	
              McGettigan,
                Wick & Co.

              50
                Osgood Place, Penthouse

              San
                Francisco, CA 94133

              Facsimile
                # (415) 986-3617

            	 	
              500
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              50,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Robert
                Campbell

            	 	
              B.
                Riley & Co

              4675
                MacArthur Court, Suite 1500

              Newport
                Beach, CA 92660

              Facsimile
                # (949) 852-0430

            	 	
              50
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              5,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Stanley
                Gaines

            	 	
              1473
                North Ocean Blvd.

              Palm
                Beach, FL 33480

              Facsimile
                # (561) 840-9011

            	 	
              500
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              50,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Daniel
                Donahoe

            	 	
              Red
                Rock Resorts

              7114
                East Stetson Drive, Suite 205

              Scottsdale,
                AZ 85251

              Facsimile
                # (480) 994-3521

            	 	
              100
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              10,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Dennis
                Shogren

            	 	
              Modtech
                Holdings, Inc.

              2830
                Barrett Avenue

              Perris,
                CA 92571

              Facsimile
                # (951) 943-9655

            	 	
              200
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              20,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Kenneth
                Cragun

            	 	
              Modtech
                Holdings, Inc.

              2830
                Barrett Avenue

              Perris,
                CA 92571

              Facsimile
                # (951) 943-9655

            	 	
              10
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              1,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Ronald
                Savona

            	 	
              Modtech
                Holdings, Inc.

              2830
                Barrett Avenue

              Perris,
                CA 92571

              Facsimile
                # (951) 943-9655

            	 	
              10
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              1,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Richard
                Bartolotti

            	 	
              Modtech
                Holdings, Inc.

              2830
                Barrett Avenue

              Perris,
                CA 92571

              Facsimile
                # (951) 943-9655

            	 	
              100
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              10,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Harry
                Clark

            	 	
              Modtech
                Holdings, Inc.

              2830
                Barrett Avenue

              Perris,
                CA 92571

              Facsimile
                # (951) 943-9655

            	 	
              50
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              5,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Karen
                Andreasen

            	 	
              Modtech
                Holdings, Inc.

              2830
                Barrett Avenue

              Perris,
                CA 92571

              Facsimile
                # (951) 943-9655

            	 	
              50
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              5,000

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Buyer’s
                Name

            	 	
              Buyer’s
                Address

              and
                Facsimile Number

            	 	
              Number
                of

              Securities

            	 	 	
              Purchase

              Price

            	 
	 	 	 	 	 	 	 	 	 
	
              Richard
                Von Hor

            	 	
              Modtech
                Holdings, Inc.

              2830
                Barrett Avenue

              Perris,
                CA 92571

              Facsimile
                # (951) 436-4088

            	 	
              18
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              1,800

            	 
	 	 	 	 	 	 	 	 	 
	
              Thomas
                McGovern

            	 	
              Modtech
                Holdings, Inc.

              1602
                Industrial Park Dr.

              Plant
                City, FL 33566

              Facsimile
                # 813-759-0576

            	 	
              50
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              5,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Kenneth
                Keska

            	 	
              Modtech
                Holdings, Inc.

              5301
                W. Madison 

              Phoenix,
                AZ 85043

              Facsimile
                # 602-233-9458

            	 	
              10
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              1,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Danny
                Ewing

            	 	
              Modtech
                Holdings, Inc.

              2830
                Barrett Avenue

              Perris,
                CA 92571

              Facsimile
                #951-943-3725

            	 	
              20
                shares of

              Series
                C

              Preferred
                Stock

            	 	
              $

            	
              2,000

            	 
	 	 	 	 	 	 	 	 	 
	
              R&R
                Opportunity Fund

            	 	
              R&R
                Opp. Fund - 

              care
                of Noari Holdings LLC

              1
                Bridge Street, Suite #126

              Irvington,
                N.Y. 10533

            	 	
              2000
                shares of

              Series
                B

              Preferred
                Stock

            	 	
              $

            	
              200,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Dolphin
                Offshore Partners, L.P.

            	 	
              129
                East 17TH Street

              New
                York, NY 10003

              Facsimile
                # (904) 491-5011

            	 	
              7,500
                shares of

              Series
                B

              Preferred
                Stock

            	 	
              $

            	
              750,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Thomas
                Peckosh

            	 	
              2310
                Simpson Street

              Dubuque,
                Iowa 52003

            	 	
              960
                shares of

              Series
                B

              Preferred
                Stock

            	 	
              $

            	
              96,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Charles
                R. Skemp

            	 	
              The
                Skemp Company

              1950
                John F. Kennedy Road

              Dubuque,
                Iowa 52002

              Facsimile
                # (563) 557-3143

            	 	
              480
                shares of

              Series
                B

              Preferred
                Stock

            	 	
              $

            	
              48,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Charles
                Gwirtsman

            	 	
              KRG
                Capital Partners, LLC

              1515
                Arapahoe Street

              Tower
                One - Suite 1500

              Denver,
                CO 80202

              Facsimile
                # (303) 390-5015

            	 	
              1250
                shares of

              Series
                B

              Preferred
                Stock

            	 	
              $

            	
              125,000

            	 
	 	 	 	 	 	 	 	 	 
	
              GCA
                Strategic Investment Fund Limited

            	 	
              Mechanics
                Building, 12 Church Street

              Hamilton,
                Bermuda HM11

            	 	
              1000
                shares of

              Series
                B

              Preferred
                Stock

            	 	
              $

            	
              100,000

            	 
	 	 	 	 	 	 	 	 	 
	
              Maythorpe
                Holdings Limited

            	 	
              2nd
                Floor, Geneva Place

              333
                Waterfront Drive

              Road
                Town, Tortola, British Virgin Islands

              Facsimile
                #. (284) 494-3088

            	 	
              1000
                shares of

              Series
                B

              Preferred
                Stock

            	 	
              $

            	
              100,000Exhibit
        10.66

       

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (the “Agreement”) is made and entered into as of
      March 10, 2008 by and among Modtech Holdings, Inc., a Delaware corporation
      (the
“Company”), and the “Buyers” named in that certain Subscription Agreement by and
      among the Company and the Buyers, dated the date hereof (the “Subscription
      Agreement”). Capitalized terms used herein have the respective meanings ascribed
      thereto in the Subscription Agreement unless otherwise defined
      herein.

     

    The
      parties hereby agree as follows:

     

    1. Certain
      Definitions.

     

    As
      used
      in this Agreement, the following terms shall have the following
      meanings:

     

    “Buyers”
shall
      mean the Buyers identified in the Subscription Agreement and any Affiliate
      or
      permitted transferee of any Buyer who is a subsequent holder of any Registrable
      Securities.

     

    “Common
      Stock”
shall
      mean the Company’s common stock, par value $0.01 per share, and any securities
      into which such shares may hereinafter be reclassified.

     

    “Insider”
means
      a
      Person who is either an officer or a director of the Company or any Subsidiary
      of the Company.

     

    “Insider
      Shares”
means
      the Shares purchased by any Insider.

     

    “Prospectus”
shall
      mean (i) the prospectus included in any Registration Statement, as amended
      or
      supplemented by any prospectus supplement, with respect to the terms of the
      offering of any portion of the Registrable Securities covered by such
      Registration Statement and by all other amendments and supplements to the
      prospectus, including post-effective amendments and all material incorporated
      by
      reference in such prospectus, and (ii) any “free writing prospectus” as defined
      in Rule 405 under the 1933 Act.

     

    “Register,”
      “registered”
and
      “registration”
refer
      to a registration made by preparing and filing a Registration Statement or
      similar document in compliance with the 1933 Act (as defined below), and the
      declaration or ordering of effectiveness of such Registration Statement or
      document.

     

    “Registrable
      Securities”
shall
      mean (i) the Shares and (ii) any other securities issued or issuable with
      respect to or in exchange for Registrable Securities; provided, that, a security
      shall cease to be a Registrable Security upon (A) sale pursuant to a
      Registration Statement or Rule 144 under the 1933 Act, or (B) such security
      becoming eligible for sale without restriction by the Buyers pursuant to Rule
      144.

     

    “Registration
      Statement”
shall
      mean any registration statement of the Company filed under the 1933 Act that
      covers the resale of any of the Registrable Securities pursuant to the
      provisions of this Agreement, amendments and supplements to such Registration
      Statement, including post-effective amendments, all exhibits and all material
      incorporated by reference in such Registration Statement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Required
      Buyers”
means
      the Buyers holding a majority of the Registrable Securities.

     

    “SEC”
means
      the U.S. Securities and Exchange Commission.

     

    “Shares”
means
      the shares of Common Stock to be issued upon conversion of the Series B
      Preferred Stock and Series C Preferred Stock issued pursuant to the Subscription
      Agreement.

     

     “1933
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

     

    “1934
      Act”
means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder.

     

    2. Registration.

     

    (a)  Registration
      Statements.

     

    (i) Promptly
      following the Closing but no later than the earlier of (i) Five (5) Business
      Days after the Company files its Annual Report on Form 10-K for the year ended
      December 31, 2007 with the SEC or (ii) April 7, 2008 (the “Filing Deadline”),
      the Company shall prepare and file with the SEC one Registration Statement
      on
      Form S-3 (or, if Form S-3 is not then available to the Company, on such form
      of
      registration statement as is then available to effect a registration for resale
      of the Registrable Securities), covering the resale of the Shares (the
“Registrable Securities”). Subject to any SEC comments, such Registration
      Statement shall include the plan of distribution attached hereto as Exhibit
      A;
      provided, however, that no Buyer shall be named as an “underwriter” in the
      Registration Statement without the Buyer's ' prior written consent. Such
      Registration Statement also shall cover, to the extent allowable under the
      1933
      Act and the rules promulgated thereunder (including Rule 416), such
      indeterminate number of additional shares of Common Stock resulting from stock
      splits, stock dividends or similar transactions with respect to the Registrable
      Securities. Such Registration Statement shall not include any shares of Common
      Stock or other securities for the account of any other holder without the prior
      written consent of the Required Buyers; provided, however, that the Company
      may
      include in such Registration Statement the securities defined as "Registrable
      Securities" under the Registration Rights Agreements dated February 29, 2008
      between the Company and Laurus Master Fund, Ltd., Valens Offshore SPV I, Ltd.,
      and Valens U.S. SPV I, LLC (the "Other Registrable Securities"). The
      Registration Statement (and each amendment or supplement thereto, and each
      request for acceleration of effectiveness thereof) shall be provided in
      accordance with Section 3(c) to the Buyers prior to its filing or other
      submission. If a Registration Statement covering the Registrable Securities
      is
      not filed with the SEC on or prior to the Filing Deadline, the Company will
      make
      pro rata payments to each Buyer (other than an
      Insider),
      as
      liquidated damages and not as a penalty, in an amount equal to 1.5% of the
      aggregate amount invested by such Buyer on the Closing Date for each 30-day
      period or pro rata for any portion thereof following the Filing Deadline for
      which no Registration Statement is filed with respect to the Registrable
      Securities. Such payments shall constitute the Buyers' exclusive monetary remedy
      for such events, but shall not affect the right of the Buyers to seek injunctive
      relief. Such payments shall be made to each Buyer in cash within three Business
      Days after the end of each calendar month.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    (b)  Expenses.
      The
      Company will pay all expenses associated with each registration, including
      filing and printing fees, the Company’s counsel and accounting fees and
      expenses, costs associated with clearing the Registrable Securities for sale
      under applicable state securities laws, listing fees, fees in connection with
      the registration, but excluding discounts, commissions, fees of underwriters,
      selling brokers, dealer managers or similar securities industry professionals
      with respect to the Registrable Securities being sold.

     

    (c)  Effectiveness.

     

    (i) The
      Company shall use commercially reasonable efforts to have any Registration
      Statement declared effective as soon as practicable. The Company shall notify
      the Buyers by facsimile or e-mail as promptly as practicable, and in any event,
      within twenty-four (24) hours, after any Registration Statement is declared
      effective and shall simultaneously provide the Buyers with copies of any related
      Prospectus to be used in connection with the sale or other disposition of the
      securities covered thereby. If (A)(x) a Registration Statement covering the
      Registrable Securities is not declared effective by the SEC prior to the earlier
      of (i) five (5) Business Days after the SEC shall have informed the Company
      that
      no review of the Registration Statement will be made or that the SEC has no
      further comments on the Registration Statement or (ii) the 60th
      day
      after the Filing Deadline or
      (B)
      after a Registration Statement has been declared effective by the SEC, sales
      cannot be made pursuant to such Registration Statement for any reason (including
      without limitation by reason of a stop order, or the Company’s failure to update
      the Registration Statement), but excluding any Allowed Delay (as defined below)
      or the inability of any Buyer to sell the Registrable Securities covered thereby
      due to market conditions, then,
      if
      a Buyer cannot sell their Registrable
      Securities without restriction pursuant to Rule 144 or otherwise, the
      Company will make pro rata payments to each such Buyer (other
      than an Insider)
      as
      liquidated damages and not as a penalty, in an amount equal to 1.5% of the
      aggregate amount invested by such Buyer under the Subscription Agreement for
      each 30-day period or pro rata for any portion thereof following the date by
      which such Registration Statement should have been effective (the “Blackout
      Period”). Such payments shall constitute the Buyers' exclusive monetary remedy
      for such events, but shall not affect the right of the Buyers to seek injunctive
      relief. The amounts payable as liquidated damages pursuant to this paragraph
      shall be paid monthly within three (3) Business Days of the last day of each
      month following the commencement of the Blackout Period until the termination
      of
      the Blackout Period. Such payments shall be made to each Buyer in cash.

     

    (ii) For
      not
      more than twenty (20) consecutive days or for a total of not more than
      forty-five (45) days in any twelve (12) month period, the Company may suspend
      the use of any Prospectus included in any Registration Statement contemplated
      by
      this Section in the event that the Company determines in good faith that such
      suspension is necessary to (A) delay the disclosure of material non-public
      information concerning the Company, the disclosure of which at the time is
      not,
      in the good faith opinion of the Company, in the best interests of the Company
      or (B) amend or supplement the affected Registration Statement or the related
      Prospectus so that such Registration Statement or Prospectus shall not include
      an untrue statement of a material fact or omit to state a material fact required
      to be stated therein or necessary to make the statements therein, in the case
      of
      the Prospectus in light of the circumstances under which they were made, not
      misleading (an “Allowed Delay”); provided, that the Company shall promptly (a)
      notify each Buyer
      in
      writing of the commencement of and the reasons for an Allowed Delay, but shall
      not (without the prior written consent of a Buyer other than an Insider)
      disclose to such Buyer any material non-public information giving rise to an
      Allowed Delay, (b) advise the
      Buyers
in
      writing to cease all sales under the Registration Statement until the end of
      the
      Allowed Delay and (c) use commercially reasonable efforts to terminate an
      Allowed Delay as promptly as practicable.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    (d) Rule
      415; Cutbacks.
      If at
      any time the SEC takes the position that the offering of some or all of the
      Registrable Securities or the Other Registrable Securities in a Registration
      Statement is not eligible to be made on a delayed or continuous basis under
      the
      provisions of Rule 415 under the 1933 Act or requires any Buyer to be named
      as
      an “underwriter”, the Company shall use its commercially reasonable best efforts
      to persuade the SEC that the offering contemplated by the Registration Statement
      is a valid secondary offering and not an offering “by or on behalf of the
      issuer” as defined in Rule 415 and that none of the Buyers is an “underwriter”.
      The Buyers collectively (other than the Insiders) shall have the right to each
      have a single counsel representing them participate in any meetings or
      discussions with the SEC regarding the SEC’s position and to have their counsel
      comment on any written submission made to the SEC with respect thereto. No
      such
      written submission shall be made to the SEC to which the Buyers' counsel
      reasonably objects. In the event that, despite the Company’s commercially
      reasonable efforts and compliance with the terms of this Section 2(e), the
      SEC
      refuses to alter its position, the Company shall (i) remove from the
      Registration Statement such portion of the Registrable Securities (the “Cut Back
      Shares”) and/or (ii) agree to such restrictions and limitations on the
      registration and resale of the Registrable Securities as the SEC may require
      to
      assure the Company’s compliance with the requirements of Rule 415; provided,
      however, that the Company shall not agree to name any Buyer as an “underwriter”
in such Registration Statement without the prior written consent of such Buyer
      (collectively, the “SEC Restrictions”). Any cut-back imposed pursuant to this
      Section 2(d) shall be allocated first,
      to the
      Insider Shares pro rata among the holders thereof, and second,
      to the
      remaining Registrable Securities held by Buyer's pro rata among them, unless
      the
      SEC Restrictions otherwise require or provide. No liquidated damages shall
      accrue on or as to any Cut Back Shares. No cut-back will be imposed on the
      Other
      Registrable Securities.

     

    3. Company
      Obligations.
      The
      Company will use commercially reasonable efforts to effect the registration
      of
      the Registrable Securities in accordance with the terms hereof, and pursuant
      thereto the Company will, as expeditiously as possible:

     

    (a)  use
      commercially reasonable efforts to cause such Registration Statement to become
      effective and to remain continuously effective for a period that will terminate
      upon the earlier of (i) the date on which all Registrable Securities covered
      by
      such Registration Statement as amended from time to time, have been sold, and
      (ii) the date on which all Registrable Securities covered by such Registration
      Statement may be sold without restriction pursuant to Rule 144 (the
“Effectiveness Period”) and advise the Buyers writing when the Effectiveness
      Period has expired. it being understood that the Effectiveness Period may expire
      for some Buyers sooner than others;

     

    (b)  prepare
      and file with the SEC such amendments and post-effective amendments to the
      Registration Statement and the Prospectus as may be necessary to keep the
      Registration Statement effective for the Effectiveness Period and to comply
      with
      the provisions of the 1933 Act and the 1934 Act with respect to the distribution
      of all of the Registrable Securities covered thereby;

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    

    (c)  provide
      copies to and permit a single counsel designated by the Buyers to review each
      Registration Statement and all amendments and supplements thereto no fewer
      than
      three (3) Business Days prior to their filing with the SEC and not file any
      document to which such counsel reasonably objects;

     

    (d)  furnish
      to the Buyers (other than the Insiders) and the legal counsel of the Buyers,
      if
      any (i) promptly after the same is prepared and publicly distributed, filed
      with
      the SEC, or received by the Company (but not later than two (2) Business Days
      after the filing date, receipt date or sending date, as the case may be) one
      (1)
      copy of any Registration Statement and any amendment thereto, each preliminary
      prospectus and Prospectus and each amendment or supplement thereto, and each
      letter written by or on behalf of the Company to the SEC or the staff of the
      SEC, and each item of correspondence from the SEC or the staff of the SEC,
      in
      each case relating to such Registration Statement (other than any portion of
      any
      thereof which contains information for which the Company has sought confidential
      treatment), and (ii) such number of copies of a Prospectus, including a
      preliminary prospectus, and all amendments and supplements thereto and such
      other documents as each Buyer may reasonably request in order to facilitate
      the
      disposition of the Registrable Securities owned by such Buyer that are covered
      by the related Registration Statement;

     

    (e)  use
      commercially reasonable efforts to (i) prevent the issuance of any stop order
      or
      other suspension of effectiveness and, (ii) if such order is issued, obtain
      the
      withdrawal of any such order at the earliest possible moment;

     

    (f)  prior
      to
      any public offering of Registrable Securities use commercially reasonable
      efforts to register or qualify or cooperate with the Buyers and their respective
      counsels, if any, in connection with the registration or qualification of such
      Registrable Securities for offer and sale under the securities or blue sky
      laws
      of such jurisdictions requested by the Buyers and do any and all other
      commercially reasonable acts or things necessary or advisable to enable the
      distribution in such jurisdictions of the Registrable Securities covered by
      the
      Registration Statement;
      provided, however, that the Company shall not be required in connection
      therewith or as a condition thereto to (i) qualify to do business in any
      jurisdiction where it would not otherwise be required to qualify but for this
      Section 3(f), (ii) subject itself to general taxation in any jurisdiction where
      it would not otherwise be so subject but for this Section 3(f), or (iii) file
      a
      general consent to service of process in any such jurisdiction;

     

    (g)  use
      commercially reasonable efforts to cause all Registrable Securities covered
      by a
      Registration Statement to be listed on each securities exchange, interdealer
      quotation system or other market on which similar securities issued by the
      Company are then listed;

     

    (h)  immediately
      notify the Buyers, at any time prior to the end of the Effectiveness Period,
      upon discovery that, or upon the happening of any event as a result of which,
      the Prospectus includes an untrue statement of a material fact or omits to
      state
      any material fact required to be stated therein or necessary to make the
      statements therein not misleading in light of the circumstances then existing,
      and promptly prepare, file with the SEC and furnish to such holder a supplement
      to or an amendment of such Prospectus as may be necessary so that such
      Prospectus shall not include an untrue statement of a material fact or omit
      to
      state a material fact required to be stated therein or necessary to make the
      statements therein not misleading in light of the circumstances then existing;
      and

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    

    (i)  otherwise
      use commercially reasonable efforts to comply with all applicable rules and
      regulations of the SEC under the 1933 Act and the 1934 Act, file any final
      Prospectus, including any supplement or amendment thereof, with the SEC pursuant
      to Rule 424 under the 1933 Act, and take such other actions as may be reasonably
      necessary to facilitate the registration of the Registrable Securities
      hereunder; and make available to its security holders, as soon as reasonably
      practicable, but not later than the Availability Date (as defined below), an
      earnings statement covering a period of at least twelve (12) months, beginning
      after the effective date of each Registration Statement, which earnings
      statement shall satisfy the provisions of Section 11(a) of the 1933 Act,
      including Rule 158 promulgated thereunder (for the purpose of this subsection
      3(i), “Availability Date” means the 45th day following the end of the fourth
      fiscal quarter that includes the effective date of such Registration Statement,
      except that, if such fourth fiscal quarter is the last quarter of the Company’s
      fiscal year, “Availability Date” means the 90th day after the end of such fourth
      fiscal quarter).

     

    (j)  With
      a
      view to making available to the Buyers the benefits of Rule 144 (or its
      successor rule) and any other rule or regulation of the SEC that may at any
      time
      permit the Buyers to sell shares of Common Stock to the public without
      registration, the Company covenants and agrees to: (i) make and keep public
      information available, as those terms are understood and defined in Rule 144,
      until the earlier of (A) six months after such date as all of the Registrable
      Securities may be sold without restriction by the holders thereof pursuant
      to
      Rule 144 or any other rule of similar effect or (B) such date as all of the
      Registrable Securities shall have been resold; (ii) file with the SEC in a
      timely manner all reports and other documents required of the Company under
      the
      1934 Act; and (iii) furnish to each Buyer upon request, as long as such Buyer
      owns any Registrable Securities, (A) a written statement by the Company that
      it
      has complied with the reporting requirements of the 1934 Act, (B) a copy of
      the
      Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form
      10-Q, and (C) such other information as may be reasonably requested in order
      to
      avail such Buyer of any rule or regulation of the SEC that permits the selling
      of any such Registrable Securities without registration.

     

    5. Obligations
      of the Buyers.

     

    (a)  Each
      Buyer shall furnish in writing to the Company such information regarding itself,
      the Registrable Securities held by it and the intended method of disposition
      of
      the Registrable Securities held by it, as shall be reasonably required to effect
      the registration of such Registrable Securities and shall execute such documents
      in connection with such registration as the Company may reasonably request.
      At
      least five (5) Business Days prior to the first anticipated filing date of
      any
      Registration Statement, the Company shall notify each Buyer of the information
      the Company requires from them if they elect to have any of the Registrable
      Securities included in the Registration Statement. Each Buyer shall provide
      such
      information to the Company at least two (2) Business Days prior to the first
      anticipated filing date of such Registration Statement if they elect to have
      any
      of the Registrable Securities included in the Registration
      Statement.

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    

    (b)  Each
      Buyer, by their acceptance of the Registrable Securities agrees to cooperate
      with the Company as reasonably requested by the Company in connection with
      the
      preparation and filing of a Registration Statement hereunder, unless they have
      notified the Company in writing of their election to exclude all of their
      Registrable Securities from such Registration Statement.

     

    (c)  Each
      Buyer agrees that, upon receipt of any notice from the Company of either (i)
      the
      commencement of an Allowed Delay pursuant to Section 2(c)(ii) or (ii) the
      happening of an event pursuant to Section 3(h) hereof, they will immediately
      discontinue disposition of Registrable Securities pursuant to the Registration
      Statement covering such Registrable Securities, until they are advised by the
      Company that such dispositions may again be made.

     

    6. Indemnification.

     

    (a)  Indemnification
      by the Company.
      The
      Company will indemnify and hold harmless each Buyer and their respective
      officers, directors, members, employees and agents, successors and assigns,
      and
      each other person, if any, who controls such Buyer within the meaning of the
      1933 Act, against any losses, claims, damages or liabilities, joint or several,
      to which they may become subject under the 1933 Act or otherwise, insofar as
      such losses, claims, damages or liabilities (or actions in respect thereof)
      arise out of or are based upon: (i) any untrue statement or alleged untrue
      statement of any material fact contained in any Registration Statement, any
      preliminary Prospectus or final Prospectus, or any amendment or supplement
      thereof; (ii) any blue sky application or other document executed by the Company
      specifically for that purpose or based upon written information furnished by
      the
      Company filed in any state or other jurisdiction in order to qualify any or
      all
      of the Registrable Securities under the securities laws thereof (any such
      application, document or information herein called a “Blue Sky Application”);
      (iii) the omission or alleged omission to state in a Blue Sky Application a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading; (iv) any violation by the Company or its agents of
      any
      rule or regulation promulgated under the 1933 Act applicable to the Company
      or
      its agents and relating to action or inaction required of the Company in
      connection with such registration; or (v) any failure to register or qualify
      the
      Registrable Securities included in any such Registration Statement in any state
      where the Company or its agents has affirmatively undertaken or agreed in
      writing that the Company will undertake such registration or qualification
      on
      behalf of a Buyer and will reimburse such Buyer, and each of their respective
      officers, directors or members and each of their controlling persons for any
      legal or other expenses reasonably incurred by them in connection with
      investigating or defending any such loss, claim, damage, liability or action;
      provided,
      however,
      that
      the Company will not be liable in any such case if and to the extent that any
      such loss, claim, damage or liability arises out of or is based upon an untrue
      statement or alleged untrue statement or omission or alleged omission so made
      in
      conformity with information furnished by such Buyer or any such controlling
      person in writing specifically for use in such Registration Statement or
      Prospectus.

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    

    (b)  Indemnification
      by the Buyers.
      Each
      Buyer agrees, severally but not jointly, to indemnify and hold harmless, to
      the
      fullest extent permitted by law, the Company, its directors, officers,
      employees, stockholders and each person who controls the Company (within the
      meaning of the 1933 Act) against any losses, claims, damages, liabilities and
      expense (including reasonable attorney fees) resulting from (x) such Buyer’s
      failure to deliver a Prospectus in connection with any sales under the
      Registration Statement, if required, or (y) any untrue statement of a material
      fact or any omission of a material fact required to be stated in the
      Registration Statement or Prospectus or preliminary Prospectus or amendment
      or
      supplement thereto or necessary to make the statements therein not misleading,
      to the extent, but only to the extent that such untrue statement or omission
      is
      contained (1) in any information furnished in writing by such Buyer to the
      Company specifically for inclusion in such Registration Statement or Prospectus
      or amendment or supplement thereto or (2) in an outdated or defective Prospectus
      delivered by the Buyer in connection with any sales under the Registration
      Statement after being notified by the Company that the Prospectus is outdated
      or
      defective, but only if and to the extent that following the receipt of the
      amended or supplemented Prospectus the misstatement or omission giving rise
      to
      such loss, claim, damage or liability would have been corrected. In no event
      shall the liability of a Buyer be greater in amount than the dollar amount
      of
      the proceeds (net of all expense paid by such Buyer in connection with any
      claim
      relating to this Section 6 and the amount of any damages such Buyer has
      otherwise been required to pay by reason of such untrue statement or omission)
      received by such Buyer upon the sale of the Registrable Securities included
      in
      the Registration Statement giving rise to such indemnification
      obligation.

     

    (c)  Conduct
      of Indemnification Proceedings.
      Any
      person entitled to indemnification hereunder shall (i) give prompt notice to
      the
      indemnifying party of any claim with respect to which it seeks indemnification
      and (ii) permit such indemnifying party to assume the defense of such claim
      with
      counsel reasonably satisfactory to the indemnified party; provided
      that any
      person entitled to indemnification hereunder shall have the right to employ
      separate counsel and to participate in the defense of such claim, but the fees
      and expenses of such counsel shall be at the expense of such person unless
      (a)
      the indemnifying party has agreed to pay such fees or expenses, or (b) the
      indemnifying party shall have failed to assume the defense of such claim and
      employ counsel reasonably satisfactory to such person or (c) in the reasonable
      judgment of any such person, based upon written advice of its counsel, a
      conflict of interest exists between such person and the indemnifying party
      with
      respect to such claims (in which case, if the person notifies the indemnifying
      party in writing that such person elects to employ separate counsel at the
      expense of the indemnifying party, the indemnifying party shall not have the
      right to assume the defense of such claim on behalf of such person); and
provided,
      further,
      that
      the failure of any indemnified party to give notice as provided herein shall
      not
      relieve the indemnifying party of its obligations hereunder, except to the
      extent that such failure to give notice shall materially adversely affect the
      indemnifying party in the defense of any such claim or litigation. It is
      understood that the indemnifying party shall not, in connection with any
      proceeding in the same jurisdiction, be liable for fees or expenses of more
      than
      one separate firm of attorneys at any time for all such indemnified parties.
      No
      indemnifying party will, except with the consent of the indemnified party,
      consent to entry of any judgment or enter into any settlement that does not
      include as an unconditional term thereof the giving by the claimant or plaintiff
      to such indemnified party of a release from all liability in respect of such
      claim or litigation.

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (d)  Contribution.
      If for
      any reason the indemnification provided for in the preceding paragraphs (a),
      (b)
      and (c) is unavailable to an indemnified party or insufficient to hold it
      harmless, other than as expressly specified therein, then the indemnifying
      party
      shall contribute to the amount paid or payable by the indemnified party as
      a
      result of such loss, claim, damage or liability in such proportion as is
      appropriate to reflect the relative fault of the indemnified party and the
      indemnifying party, as well as any other relevant equitable considerations.
      No
      person guilty of fraudulent misrepresentation within the meaning of Section
      11(f) of the 1933 Act shall be entitled to contribution from any person not
      guilty of such fraudulent misrepresentation. In no event shall the contribution
      obligation of a holder of Registrable Securities be greater in amount than
      the
      dollar amount of the proceeds (net of all expenses paid by such holder in
      connection with any claim relating to this Section 6 and the amount of any
      damages such holder has otherwise been required to pay by reason of such untrue
      or alleged untrue statement or omission or alleged omission) received by it
      upon
      the sale of the Registrable Securities giving rise to such contribution
      obligation.

     

    7. Miscellaneous.

     

    (a)  Amendments
      and Waivers.
      This
      Agreement may be amended only by a writing signed by the Company and the
      Required Buyers. The Company may take any action herein prohibited, or omit
      to
      perform any act herein required to be performed by it, only if the Company
      shall
      have obtained the written consent to such amendment, action or omission to
      act,
      of the Required Buyers.

     

    (b) Notices.
      Unless
      otherwise provided, any notice required or permitted under this Agreement shall
      be given in writing and shall be deemed effectively given as hereinafter
      described (i) if given by personal delivery, then such notice shall be deemed
      given upon such delivery, (ii) if given by telex or telecopier, then such notice
      shall be deemed given upon receipt of confirmation of complete transmittal,
      (iii) if given by mail, then such notice shall be deemed given upon the earlier
      of (A) receipt of such notice by the recipient or (B) three days after such
      notice is deposited in first class mail, postage prepaid, and (iv) if given
      by
      an internationally recognized overnight air courier, then such notice shall
      be
      deemed given one business day after delivery to such carrier. All notices shall
      be addressed to the party to be notified at the address as follows, or at such
      other address as such party may designate by ten days’ advance written notice to
      the other party:

    

    If
      to the
      Company:

    

    Modtech
      Holdings, Inc.

    2830
      Barrett Avenue

    Perris,
      California 92571

    Attention:
      Dennis Shogren

    

    If
      to the
      Buyers: 

     

    At
      their
      addresses reflected on the books and records of the  Company.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    

    (c)  Assignments
      and Transfers by Buyers.
      The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the Buyers, and their respective successors and assigns. A Buyer may transfer
      or
      assign, in whole or from time to time in part, to one or more persons its rights
      hereunder in connection with the transfer of Registrable Securities by such
      Buyer to such person, provided that such Buyer complies with all laws applicable
      thereto and provides written notice of assignment to the Company promptly after
      such assignment is effected.

     

    (d)  Assignments
      and Transfers by the Company.
      This
      Agreement may not be assigned by the Company (whether by operation of law or
      otherwise) without the prior written consent of the Required Buyers, provided,
      however, that the Company may assign its rights and delegate its duties
      hereunder to any surviving or successor corporation in connection with a merger
      or consolidation of the Company with another corporation, or a sale, transfer
      or
      other disposition of all or substantially all of the Company’s assets to another
      corporation, without the prior written consent of the Required Buyers, after
      notice duly given by the Company to each Buyer.

     

    (e)  Benefits
      of the Agreement.
      The
      terms and conditions of this Agreement shall inure to the benefit of and be
      binding upon the respective permitted successors and assigns of the parties.
      Nothing in this Agreement, express or implied, is intended to confer upon any
      party other than the parties hereto or their respective successors and assigns
      any rights, remedies, obligations, or liabilities under or by reason of this
      Agreement, except as expressly provided in this Agreement.

     

    (f)  Counterparts;
      Faxes.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument. This Agreement may also be executed via facsimile, which shall
      be
      deemed an original.

     

    (g)  Titles
      and Subtitles.
      The
      titles and subtitles used in this Agreement are used for convenience only and
      are not to be considered in construing or interpreting this
      Agreement.

     

    (h)  Severability.
      Any
      provision of this Agreement that is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof but shall be interpreted as if it were written so as to be
      enforceable to the maximum extent permitted by applicable law, and any such
      prohibition or unenforceability in any jurisdiction shall not invalidate or
      render unenforceable such provision in any other jurisdiction. To the extent
      permitted by applicable law, the parties hereby waive any provision of law
      which
      renders any provisions hereof prohibited or unenforceable in any
      respect.

     

    (i)  Further
      Assurances.
      The
      parties shall execute and deliver all such further instruments and documents
      and
      take all such other actions as may reasonably be required to carry out the
      transactions contemplated hereby and to evidence the fulfillment of the
      agreements herein contained.

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    

    (j)  Entire
      Agreement.
      This
      Agreement is intended by the parties as a final expression of their agreement
      and intended to be a complete and exclusive statement of the agreement and
      understanding of the parties hereto in respect of the subject matter contained
      herein. This Agreement supersedes all prior agreements and understandings
      between the parties with respect to such subject matter.

     

    (k)  Governing
      Law; Consent to Jurisdiction; Waiver of Jury Trial.
      This
      Agreement shall be governed by, and construed in accordance with, the internal
      laws of the State of New York without regard to the choice of law principles
      thereof. Each of the parties hereto irrevocably submits to the exclusive
      jurisdiction of the courts of the State of New York located in New York County
      and the United States District Court for the Southern District of New York
      for
      the purpose of any suit, action, proceeding or judgment relating to or arising
      out of this Agreement and the transactions contemplated hereby. Service of
      process in connection with any such suit, action or proceeding may be served
      on
      each party hereto anywhere in the world by the same methods as are specified
      for
      the giving of notices under this Agreement. Each of the parties hereto
      irrevocably consents to the jurisdiction of any such court in any such suit,
      action or proceeding and to the laying of venue in such court. Each party hereto
      irrevocably waives any objection to the laying of venue of any such suit, action
      or proceeding brought in such courts and irrevocably waives any claim that
      any
      such suit, action or proceeding brought in any such court has been brought
      in an
      inconvenient forum. EACH
      OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
      LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN
      CONSULTED SPECIFICALLY AS TO THIS WAIVER.

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      or
      caused their duly authorized officers to execute this Agreement as of the date
      first above written.

     

    
      	
              The
                Company:

            	
              MODTECH
                HOLDINGS, INC.

            
	 	 
	 	
              By: 

            	
              /s/
                Dennis Shogren

            
	 	Name:
              Dennis Shogren 
	 	Title:
              President and Chief Executive Officer

    

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

    

    
      	 	
              BUYERS:

            
	 	 
	 	
              /s/
                Charles McGettigan

            
	 	
              Charles
                McGettigan

            

    

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

    

    
      	 	
              BUYERS:

            
	 	 
	 	
              /s/
                Robert Campbell

            
	 	
              Robert
                Campbell

            

    

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

    

    
      	 	
              BUYERS:

            
	 	 
	 	
              /s/
                Stanley Gaines

            
	 	
              Stanley
                Gaines

            

    

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

    

    
      	 	
              BUYERS:

            
	 	 
	 	
              /s/
                Daniel Donahoe

            
	 	
              Daniel
                Donahoe

            

    

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

     

    
      	 	
              BUYERS:

            
	 	 
	 	
              /s/
                Dennis Shogren

            
	 	
              Dennis
                Shogren

            
	 	 
	 	
              /s/
                Kenneth Cragun

            
	 	
              Kenneth
                Cragun

            
	 	 
	 	
              /s/
                Ronald Savona

            
	 	
              Ronald
                Savona

            
	 	 
	 	
              /s/
                Richard Bartolotti

            
	 	
              Richard
                Bartolotti

            
	 	 
	 	
              /s/
                Harold Clark

            
	 	
              Harold
                Clark

            
	 	 
	 	
              /s/
                Karen Andreasen

            
	 	
              Karen
                Andreasen

            
	 	 
	 	
              /s/
                Richard Von Hor

            
	 	
              Richard
                Von Hor

            
	 	 
	 	
              /s/
                Danny Ewing

            
	 	
              Danny
                Ewing

            

    

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

    

    
      	 	
              BUYERS:

            
	 	 
	 	
              /s/
                Thomas McGovern

            
	 	
              Thomas
                McGovern

            

    

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

    

    
      	 	
              BUYERS:

            
	 	 
	 	
              /s/
                Kenneth Keska

            
	 	
              Kenneth
                Keska

            

    

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

    

    
      	 	
              BUYERS:

            
	 	 
	 	
              R
                & R Opportunity Fund

            
	 	 
	 	
              By:
                /s/ John J. Borer, III

            
	 	
              John
                J. Borer, III

            
	 	
              Authorized
                Signatory

            

    

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

     

    
      	 	
              BUYERS:

            
	 	 
	 	
              Dolphin
                Offshore Partners, L.P.

            
	 	 
	 	
              By:
                /s/ Peter E. Salas

            
	 	
              Peter
                E. Salas

            
	 	
              General
                Partner

            

    

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

    

    
      	 	
              BUYERS:

            
	 	 
	 	
              /s/
                Thomas Peckosh

            
	 	
              Thomas
                Peckosh

            

    

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

    

    
      	 	
              BUYERS:

            
	 	 
	 	
              /s/
                Charles R. Skemp

            
	 	
              Charles
                R. Skemp

            

    

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

    

    
      	 	
              BUYERS:

            
	 	 
	 	
              /s/
                Charles Gwirtsman

            
	 	
              Charles
                Gwirtsman

            

    

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

    

    
      	 	
              BUYERS:

            
	 	 
	 	
              GCA
                Strategic Investment Fund Limited

            
	 	 
	 	
              By:
                /s/ Lewis N. Lester

            
	 	
              Lewis
                N. Lester

            
	 	
              Authorized
                Signatory

            

    

     

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

    

    
      	 	
              BUYERS:

            
	 	 
	 	
              Maythorpe
                Holdings Limited

            
	 	 
	 	
              By:
                /s/ Joel Handel

            
	 	
              Joel
                Handel

            
	 	
              Authorized
                Signatory

            

    

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement or caused their duly
      authorized officers to execute this Agreement as of the date first above
      written.

    

    
      	 	
              BUYERS:

            
	 	 
	 	
              /s/
Myron
                Wick, III

            
	 	
              Myron
                Wick, III

            

    

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

    

    Exhibit
      A

    

    Plan
      of Distribution

    

    The
      selling stockholders, which as used herein includes donees, pledgees,
      transferees or other successors-in-interest selling shares of common stock
      or
      interests in shares of common stock received after the date of this prospectus
      from a selling stockholder as a gift, pledge, partnership distribution or other
      transfer, may, from time to time, sell, transfer or otherwise dispose of any
      or
      all of their shares of common stock or interests in shares of common stock
      on
      any stock exchange, market or trading facility on which the shares are traded
      or
      in private transactions. These dispositions may be at fixed prices, at
      prevailing market prices at the time of sale, at prices related to the
      prevailing market price, at varying prices determined at the time of sale,
      or at
      negotiated prices.

    

    The
      selling stockholders may use any one or more of the following methods when
      disposing of shares or interests therein:

    

    -
      ordinary brokerage transactions and transactions in which the broker-dealer
      solicits purchasers;

    

    -
      block
      trades in which the broker-dealer will attempt to sell the shares as agent,
      but
      may position and resell a portion of the block as principal to facilitate the
      transaction;

    

    -
      purchases by a broker-dealer as principal and resale by the broker-dealer for
      its account;

    

    -
      an
      exchange distribution in accordance with the rules of the applicable
      exchange;

    

    -
      privately negotiated transactions;

    

    -
      short
      sales effected after the date the registration statement of which this
      Prospectus is a part is declared effective by the SEC;

    

    -
      through
      the writing or settlement of options or other hedging transactions, whether
      through an options exchange or otherwise;

    

    -
      broker-dealers may agree with the selling stockholders to sell a specified
      number of such shares at a stipulated price per share; and

    

    -
      a
      combination of any such methods of sale.

    

    The
      selling stockholders may, from time to time, pledge or grant a security interest
      in some or all of the shares of common stock owned by them and, if they default
      in the performance of their secured obligations, the pledgees or secured parties
      may offer and sell the shares of common stock, from time to time, under this
      prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or
      other applicable provision of the Securities Act amending the list of selling
      stockholders to include the pledgee, transferee or other successors in interest
      as selling stockholders under this prospectus. The selling stockholders also
      may
      transfer the shares of common stock in other circumstances, in which case the
      transferees, pledgees or other successors in interest will be the selling
      beneficial owners for purposes of this prospectus.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    In
      connection with the sale of our common stock or interests therein, the selling
      stockholders may enter into hedging transactions with broker-dealers or other
      financial institutions, which may in turn engage in short sales of the common
      stock in the course of hedging the positions they assume. The selling
      stockholders may also sell shares of our common stock short and deliver these
      securities to close out their short positions, or loan or pledge the common
      stock to broker-dealers that in turn may sell these securities. The selling
      stockholders may also enter into option or other transactions with
      broker-dealers or other financial institutions or the creation of one or more
      derivative securities which require the delivery to such broker-dealer or other
      financial institution of shares offered by this prospectus, which shares such
      broker-dealer or other financial institution may resell pursuant to this
      prospectus (as supplemented or amended to reflect such
      transaction).

    

    The
      aggregate proceeds to the selling stockholders from the sale of the common
      stock
      offered by them will be the purchase price of the common stock less discounts
      or
      commissions, if any. Each of the selling stockholders reserves the right to
      accept and, together with their agents from time to time, to reject, in whole
      or
      in part, any proposed purchase of common stock to be made directly or through
      agents. We will not receive any of the proceeds from this offering.

    

    The
      selling stockholders also may resell all or a portion of the shares in open
      market transactions in reliance upon Rule 144 under the Securities Act of 1933,
      provided that they meet the criteria and conform to the requirements of that
      rule.

    

    The
      selling stockholders and any underwriters, broker-dealers or agents that
      participate in the sale of the common stock or interests therein may be
      "underwriters" within the meaning of Section 2(11) of the Securities Act. Any
      discounts, commissions, concessions or profit they earn on any resale of the
      shares may be underwriting discounts and commissions under the Securities Act.
      Selling stockholders who are "underwriters" within the meaning of Section 2(11)
      of the Securities Act will be subject to the prospectus delivery requirements
      of
      the Securities Act.

    

    To
      the
      extent required, the shares of our common stock to be sold, the names of the
      selling stockholders, the respective purchase prices and public offering prices,
      the names of any agents, dealer or underwriter, any applicable commissions
      or
      discounts with respect to a particular offer will be set forth in an
      accompanying prospectus supplement or, if appropriate, a post-effective
      amendment to the registration statement that includes this
      prospectus.

    

    In
      order
      to comply with the securities laws of some states, if applicable, the common
      stock may be sold in these jurisdictions only through registered or licensed
      brokers or dealers. In addition, in some states the common stock may not be
      sold
      unless it has been registered or qualified for sale or an exemption from
      registration or qualification requirements is available and is complied
      with.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    We
      have
      advised the selling stockholders that the anti-manipulation rules of Regulation
      M under the Exchange Act may apply to sales of shares in the market and to
      the
      activities of the selling stockholders and their affiliates. In addition, to
      the
      extent applicable we will make copies of this prospectus (as it may be
      supplemented or amended from time to time) available to the selling stockholders
      for the purpose of satisfying the prospectus delivery requirements of the
      Securities Act. The selling stockholders may indemnify any broker-dealer that
      participates in transactions involving the sale of the shares against certain
      liabilities, including liabilities arising under the Securities
      Act.

    

    We
      have
      agreed to indemnify the selling stockholders against liabilities, including
      liabilities under the Securities Act and state securities laws, relating to
      the
      registration of the shares offered by this prospectus.

    

    We
      have
      agreed with the selling stockholders to keep the registration statement of
      which
      this prospectus constitutes a part effective until the earlier of (1) such
      time
      as all of the shares covered by this prospectus have been disposed of pursuant
      to and in accordance with the registration statement or (2) the date on which
      the shares may be sold without restriction pursuant to Rule 144 of the
      Securities Act.

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