<SUBMISSION>
<ACCESSION-NUMBER>0000950124-04-004141
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20040830
<ITEMS>1.01
<ITEMS>9.01
<FILING-DATE>20040901
<DATE-OF-FILING-DATE-CHANGE>20040901
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CHAMPION ENTERPRISES INC
<CIK>0000814068
<ASSIGNED-SIC>2451
<IRS-NUMBER>382743168
<STATE-OF-INCORPORATION>MI
<FISCAL-YEAR-END>1225
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-09751
<FILM-NUMBER>041011766
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2701 CAMBRIDGE COURT
<STREET2>STE 300
<CITY>AUBURN HILLS
<STATE>MI
<ZIP>48326
<PHONE>2483409090
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2701 UNIVERSITY DRIVE
<STREET2>STE 300
<CITY>AUBURN HILLS
<STATE>MI
<ZIP>48326
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>k87991e8vk.htm
<DESCRIPTION>CURRENT REPORT, DATED AUGUST 30, 2004
<TEXT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


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<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, DC 20549</B>
</DIV>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>


<P align="center" style="font-size: 10pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B>



<P align="center" style="font-size: 10pt">Date of report (Date of earliest event reported): August&nbsp;30, 2004


<P align="center" style="font-size: 24pt"><B>Champion Enterprises, Inc.</B>


<DIV align="center" style="font-size: 10pt"><HR align="center" size="1" noshade width="100%"></DIV>


<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Its Charter)</DIV>



<P align="center" style="font-size: 10pt">Michigan


<DIV align="center" style="font-size: 10pt"><HR align="center" size="1" noshade width="100%"></DIV>


<DIV align="center" style="font-size: 10pt">(State or Other Jurisdiction of Incorporation)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top">1-9751
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">38-2743168</TD>
</TR>

<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top">2701 Cambridge Court, Suite&nbsp;300, Auburn Hills, Michigan
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">48326</TD>
</TR>

<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of Principal Executive Offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">(248)&nbsp;340-9090<BR>
<HR align="center" size="1" noshade width="100%">


<DIV align="center" style="font-size: 10pt">(Registrant&#146;s Telephone Number, Including Area Code)</DIV>



<P align="center" style="font-size: 10pt">Not Applicable<BR>
<HR align="center" size="1" noshade width="100%">


<DIV align="center" style="font-size: 10pt">(Former Name or Former Address, if Changed Since Last Report)</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the
Securities Act (17 CFR 230.425)


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the
Exchange Act (17 CFR 240.14a-12)


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))


<P>
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<P align="center" style="font-size: 10pt">&nbsp;
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<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

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<TR><TD></TD><TD colspan="8"><A HREF="#000">Item&nbsp;1.01. Entry into a Material Definitive Agreement.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item&nbsp;9.01. Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">Index to Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="k87991exv10w1.htm">Change in Control Severance Agreement</A></TD></TR>
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<DIV align="left"><A NAME="000"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;1.01. Entry into a Material Definitive Agreement.</B>


<P align="left" style="font-size: 10pt">On August&nbsp;30, 2004, Champion Enterprises, Inc. (the &#147;Company&#148;) entered into its
standard Change in Control Severance Agreement (the &#147;Agreement&#148;) with its newly
appointed Chief Executive Officer, William C. Griffiths. The Agreement was
effective as of August&nbsp;1, 2004 and a copy is attached hereto as Exhibit&nbsp;10.1.
The following description of the Agreement is qualified in its entirety by
reference to the Agreement.


<P align="left" style="font-size: 10pt">Under the Agreement, Mr.&nbsp;Griffiths would receive a cash severance payment if
his employment is terminated following a change in control of the Company, as
defined in the Agreement. Mr.&nbsp;Griffiths&#146; severance payment would be twice the
highest annual base salary and annual performance incentive earned by the
executive in any one of the three fiscal years prior to termination. The
Agreement also provides that in certain circumstances the severance payment
will be increased to fully compensate Mr.&nbsp;Griffiths for any U.S. federal excise
tax paid by him due to his receiving the severance payment as well as for any
U.S. federal, state or local income tax payments arising due to his receipt of
such additional amount.

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<DIV align="left"><A NAME="001"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits</B>


<P align="left" style="font-size: 10pt">(c)&nbsp;Exhibits.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" nowrap align="left">Exhibit&nbsp;10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Change in Control Severance Agreement, dated as of August&nbsp;1, 2004,
between Champion Enterprises, Inc. and William C. Griffiths.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV align="left"><A NAME="002"></A></DIV>

<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


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    <TD width="1%">&nbsp;</TD>
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    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3">CHAMPION ENTERPRISES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000">/s/ John J. Collins, Jr.
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">John J. Collins, Jr., Senior Vice&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">President, General Counsel and Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">Date: September&nbsp;1, 2004


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P align="center" style="font-size: 10pt"><B>Index to Exhibits</B>

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    <TD width="5%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
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<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit No.</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Description</B><HR size="1" noshade></TD>
</TR>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change in Control Severance Agreement, dated as of August&nbsp;1,
2004, between Champion Enterprises, Inc. and William C.
Griffiths.</TD>
</TR>

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</DIV>




<P align="center" style="font-size: 10pt">&nbsp;
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>k87991exv10w1.htm
<DESCRIPTION>CHANGE IN CONTROL SEVERANCE AGREEMENT
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<P align="right" style="font-size: 10pt"><B>EXHIBIT&nbsp;10.1</B>

<P align="center" style="font-size: 10pt"><B>CHAMPION ENTERPRISES, INC.<BR>
<U>CHANGE IN CONTROL SEVERANCE AGREEMENT</U></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS CHANGE IN CONTROL SEVERANCE AGREEMENT </B>(the &#147;Agreement&#148;), dated as of
August&nbsp;1, 2004, is between Champion Enterprises, Inc. (the &#147;Company&#148;) and
William C. Griffiths, who is currently employed by the Company in the position
Chief Executive Officer (the &#147;Executive&#148;).


<P align="center" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>WITNESSETH</U>:</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Company believes that it is in the best interests of the
Company and its Shareholders if the Executive is assured that he will receive
appropriate financial protection in the event of a Change in Control (as
defined in Section&nbsp;4 below), thus ensuring that the Executive will have an
incentive to perform valuable services for the Company and will not be
distracted in the event of an actual or threatened Change in Control; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Company believes that the assurance of appropriate financial
protection to the Executive in the event of a Change in Control will encourage
the Executive to remain in the employ of the Company through the transition
period following a Change in Control, which is in the best interests of the
Company and its Shareholders; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Executive is willing to provide dedicated services to the
Company on the condition that he receives adequate assurance that he will
receive appropriate financial protection in the event of a Change in Control;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW THEREFORE</B>, in consideration of the premises and mutual covenants, the
parties hereto agree as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U><B>Operation of Agreement</B></U>. This Agreement sets forth the sole
severance compensation that the Company shall pay the Executive if the
Executive&#146;s employment with the Company terminates under one of the applicable
provisions set forth herein following a Change in Control which shall be in
lieu of any severance compensation pursuant to the employment agreement between
the Executive and the Company dated as of July&nbsp;12, 2004.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U><B>Term of the Agreement</B></U>. This Agreement shall be effective upon
its execution by both parties and shall terminate upon the first of the
following events to occur:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;two (2)&nbsp;years from the date hereof if a Change in Control has not
occurred within such two-year period;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the termination of the Executive&#146;s employment with the Company prior
to a Change in Control except under the circumstances described in Section&nbsp;6
hereunder;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;the expiration of two (2)&nbsp;years following a Change in Control (or two
years following the later of one or more successive Changes in Control that
occur within the two year period immediately following the initial Change in
Control);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;the termination of the Executive&#146;s employment with the Company
following a Change in Control due to the Executive&#146;s death, Disability (as
defined in Section 3(a) below) or Retirement (as defined in Section 3(b)
below);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;the termination of the Executive&#146;s employment by the Company for Cause
(as defined in Section 3(c) below) following a Change in Control; or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;termination of employment by the Executive for other than Good Reason
(as defined in Section&nbsp;5) following the date of a Change in Control.


<P align="center" style="font-size: 10pt">&nbsp;
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U><B>Defined Terms</B></U>. For purposes of this Agreement, the following
terms shall have the meanings set forth below:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&#147;Disability&#148; shall mean the Executive&#146;s total and permanent disability
which prevents the Executive from performing the duties he was assigned
immediately prior to the Change in Control for a continuous period exceeding 9
months. The determination of a Disability shall be made by a medical board
certified physician mutually acceptable to the Company and the Executive (or
the Executive&#146;s legal representative, if one has been appointed), and if the
parties cannot mutually agree to the selection of a physician, then each party
shall select such a physician and the two physicians so selected shall select a
third physician who shall make this determination.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Retirement&#148; shall mean retirement on or after age 65.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&#147;Cause&#148; shall mean the Executive&#146;s willful gross misconduct, willful
and material breach of Executive&#146;s duties or an act of fraud or dishonesty by
the Executive that directly or indirectly results in material harm to the
Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U><B>Change in Control</B></U>. A Change in Control shall be deemed to have
occurred upon the occurrence of any of the following events:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the acquisition of ownership by a person, firm or corporation, or a
group acting in concert, of 51%, or more, of the outstanding common stock of
the Company in a single transaction or a series of related transactions within
a one-year period;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;a sale of all or substantially all of the assets of the Company to any
person, firm or corporation through a single transaction or multiple
transactions; or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;a merger, consolidation or similar transaction between the Company and
another entity if shareholders of the Company do not own a majority of the
voting stock of the corporation surviving the transaction.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U><B>Termination of Employment Following a Change in Control</B></U>.
Subject to Sections&nbsp;6 and 11(a) hereunder, the Executive shall be entitled to
severance payments under this Agreement only if there has been a Change in
Control and the Executive has incurred a Termination of Employment. For
purposes of this Agreement during the two-year period following any Change in
Control that occurs during the term of this Agreement, &#147;Termination of
Employment&#148; shall be defined as:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Executive&#146;s involuntary termination by the Company for any reason
other than death, Disability, Retirement or Cause; or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Executive&#146;s termination for &#147;Good Reason,&#148; defined as the
occurrence of any of the following events without the Executive&#146;s written
consent:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Any reassignment of the Executive to duties inconsistent with his
position, title, duties, responsibilities and status with the Company
immediately prior to the Change in Control, or a change in the Executive&#146;s
reporting responsibilities, including a change in the identity or the corporate
position to which the Executive reports, or a change in title (except for a
promotion) in effect immediately prior to the Change in Control;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any reduction in the Executive&#146;s base salary in effect immediately
prior to the Change in Control, or failure by the Company to continue any
bonus, stock or incentive plans in effect immediately prior to the Change in
Control (without the implementation of a comparable successor plan which
provides the same benefits), or any removal of the Executive from participation
in such aforementioned plans;


<P align="center" style="font-size: 10pt">-2-
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The discontinuance or reduction in benefits to the Executive of any
qualified or non-qualified retirement or welfare plan maintained by the Company
immediately prior to the Change in Control, or the discontinuance of any fringe
benefits or other perquisites which the Executive received immediately prior to
the Change in Control:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;Required business traveling by the Executive on a significantly more
frequent basis and for significantly longer periods of time than the Executive
was required to travel immediately prior to the Change in Control unless the
increase in required business traveling is on account of the Executive&#146;s
promotion;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Any reassignment of the Executive&#146;s duties that would require the
Executive to relocate the Executive&#146;s primary residence; or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;The Company&#146;s breach of any provision in this Agreement.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">If the Executive believes that the Executive is entitled to a Termination of
Employment for Good Reason as defined in subparagraph (b)&nbsp;above, he may apply
in writing to the Company for confirmation of such entitlement prior to the
Executive&#146;s actual separation from employment, by following the claims
procedure set forth in Section&nbsp;15 hereof. The submission of such a request by
the Executive shall not constitute &#147;Cause&#148; for the Company to terminate the
Executive as defined under Section 3(c) hereof. If the Executive&#146;s request for
a Good Reason Termination of Employment is denied under both the request and
appeal procedures set forth in paragraphs (b)&nbsp;and (c)&nbsp;of Section&nbsp;15 hereof,
then the parties shall use their best efforts to resolve the claim within 90
days, after which the claim is submitted to arbitration pursuant to Section
15(d).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U><B>Termination Prior to Change in Control</B></U>. If within a period of
180&nbsp;days prior to the first public announcement of a proposed Change in Control
the Company terminates the employment of the Executive for reasons other than
the Executive&#146;s death, Disability, Retirement or Cause, and a Change in Control
event subsequently occurs, unless the Company establishes that the Executive&#146;s
termination was not in connection with the Change in Control, the Executive&#146;s
termination shall be deemed to have been in connection with the Change in
Control, and the Executive shall be entitled to severance payments under this
Agreement, to be paid in cash within 10&nbsp;days following the Change in Control.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U><B>Severance Payment</B></U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Upon satisfaction of the requirements set forth in Sections&nbsp;5, 6 and
11(a) hereof and with respect to any one or more Changes in Control that may
occur during the term of this Agreement, the Executive shall be entitled to a
cash severance benefit equal to two times the highest annual cash compensation
(including base salary and incentive compensation or similar award) paid or
payable to the Executive by the Company for any of the three fiscal years ended
immediately prior to the date of termination of Executive&#146;s employment, plus
the unpaid prorated portion of Executive&#146;s annual bonus (but excluding
commissions and other nonrecurring cash compensation payments).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In addition to the cash payment described in paragraph (a)&nbsp;above, upon
satisfaction of the requirements set forth in Sections&nbsp;5, 6 and 11(a) hereof,
the Executive shall be entitled to continued participation in the Company&#146;s
hospitalization, medical, life insurance and disability insurance programs
until the earlier of the first anniversary of the Executive&#146;s termination of
employment or the commencement of comparable coverage from another corporation
or partnership.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In the event that the Executive becomes entitled to payments or
benefits which will constitute &#147;parachute payments&#148; within the meaning of
Section&nbsp;280G of the Internal


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<P align="left" style="font-size: 10pt">Revenue Code of 1986, as amended (the &#147;Code&#148;), the provisions of Exhibit&nbsp;A to
this Agreement shall apply.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U><B>Time of Payment</B></U>. Subject to Sections&nbsp;6 and 11(a) hereof, the
Executive&#146;s severance benefit under Section 7(a) shall be paid in a lump sum
cash payment within 10&nbsp;days following the Executive&#146;s Termination of
Employment, as defined in Section&nbsp;5. Any payment made later than 10&nbsp;days
following the Executive&#146;s Termination of Employment (or applicable due dates
under Sections&nbsp;6 and 11(a) hereof) for whatever reason, shall include interest
at the prime rate plus two percent, which shall begin accruing on the 10th day
following the Executive&#146;s Termination of Employment (or applicable due dates
under Sections&nbsp;6 and 11(a) hereof). For purposes of this Section&nbsp;8, &#147;prime
rate&#148; shall be determined by reference to the prime rate established by
Comerica Bank (or its successor), in effect from time to time commencing on the
10th day following the Executive&#146;s Termination of Employment (or applicable due
dates under Sections&nbsp;6 and 11(a) hereof).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U><B>No Mitigation or Duty to Seek Reemployment</B></U>. The Executive shall
be under no duty or obligation to seek or accept other employment after
Termination of Employment and, subject to Section 7(b) hereof, shall not be
required to mitigate the amount of any payments provided for by this Agreement
by seeking employment or otherwise.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U><B>Tax Withholdings</B></U>. The Company may withhold from any cash
amounts payable to the Executive under this Agreement to satisfy all applicable
Federal, State, local or other income and employment withholding taxes. In the
event the Company fails to withhold such sums for any reason, or withholding is
required for the non-cash payments provided in Section 7(b) hereof, the Company
may require the Executive to promptly remit to the Company sufficient cash to
satisfy all applicable income and employment withholding taxes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U><B>Binding Effect</B></U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;This Agreement shall be binding upon the successors and assigns of the
Company. The Company shall take whatever actions are necessary to ensure that
any successor to its operations (whether by purchase, merger, consolidation,
sale of substantially all assets or otherwise) assumes the obligations under
this Agreement and will cause such successor to evidence the assumption of such
obligations in an agreement satisfactory to the Executive. Notwithstanding any
other provisions in this Agreement, if the Company fails to obtain an agreement
evidencing the assumption of the Company&#146;s obligations by any such successor,
the Executive shall be entitled to immediate payment of the severance
compensation provided under Section&nbsp;7, irrespective of whether Executive&#146;s
employment has then terminated. For purposes of implementing the foregoing,
the date on which any succession becomes effective shall be deemed to
constitute the date of the Executive&#146;s Termination of Employment.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;This Agreement shall be binding upon the Executive and shall inure to
the benefit of and be enforceable by Executive&#146;s legal representative and
heirs. However, the rights of the Executive under this Agreement shall not be
assigned, transferred, pledged, hypothecated or otherwise encumbered, except by
operation of law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<U><B>Amendment of Agreement</B></U>. This Agreement may not be modified or
amended except by instrument in writing signed by the parties hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<U><B>Validity</B></U>. The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall continue in full force and effect.


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<P align="left" style="font-size: 10pt">14. <U><B>Limitations on Rights</B></U>.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;This Agreement shall not be deemed to create a contract of employment
between the Company and the Executive and shall create no right in the
Executive to continue in the Company&#146;s employment for any specific period of
time, or to create any other rights in the Executive or obligations on the part
of the Company, except as set forth herein. This Agreement shall not restrict
the right of the Company to terminate the Executive, or restrict the right of
the Executive to terminate his employment.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;This Agreement shall not be construed to exclude the Executive from
participation in any other compensation or benefit programs in which he is
specifically eligible to participate either prior to or following the execution
of this Agreement, or any such programs that generally are available to other
executive personnel of the Company, nor shall it affect the kind and amount of
other compensation to which the Executive is entitled.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The rights of the Executive under this Agreement shall be solely those
of an unsecured general creditor of the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;<U><B>Claims Procedure</B></U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The administrator for purposes of this Agreement shall be the Company
(&#147;Administrator&#148;), whose address is Champion Enterprises, Inc., 2701 Cambridge
Court, Suite&nbsp;300, Auburn Hills, MI 48326 and whose telephone number is (248)
340-9090. The &#147;Named Fiduciary&#148; as defined in Section&nbsp;402(a)(2) of ERISA, also
shall be the Company. The Company shall have the right to designate one or
more Company employees as the Administrator and the Named Fiduciary at any
time, and to change the address and telephone number of the same. The Company
shall give the Executive written notice of any change in the Administrator and
Named Fiduciary, or in the address or telephone number of the same.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Administrator shall make all determinations as to the right of any
person to receive benefits under the Agreement. Any denial by the
Administrator of a claim for benefits by the Executive (&#147;the claimant&#148;) shall
be stated in writing by the Administrator and delivered or mailed to the
claimant within 10&nbsp;days after receipt of the claim, unless special
circumstances require an extension of time for processing the claim. If such
an extension is required, written notice of the extension shall be furnished to
the claimant prior to the termination of the initial 10-day period. In no
event shall such extension exceed a period of 10&nbsp;days from the end of the
initial period. Any notice of denial shall set forth the specific reasons for
the denial, specific reference to pertinent provisions of this Agreement upon
which the denial is based, a description of any additional material or
information necessary for the claimant to perfect his claim, with an
explanation of why such material or information is necessary, and any
explanation of claim review procedures, written to the best of the
Administrator&#146;s ability in a manner that may be understood without legal or
actuarial counsel.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;A claimant whose claim for benefits has been wholly or partially
denied by the Administrator may request, within 10&nbsp;days following the date of
such denial, in a writing addressed to the Administrator, a review of such
denial. The claimant shall be entitled to submit such issues or comments in
writing or otherwise, as he shall consider relevant to a determination of his
claim, and he may include a request for a hearing in person before the
Administrator. Prior to submitting his request, the claimant shall be entitled
to review such documents as the Administrator shall agree are pertinent to his
claim. The claimant may, at all stages of review, be represented by counsel,
legal or otherwise, of his choice. All requests for review shall be promptly
resolved. The Administrator&#146;s decision with respect to any such review shall
be set forth in writing and shall be mailed to the claimant not later than 10
days following receipt by the Administrator of the claimant&#146;s request unless
special circumstances, such as the


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<P align="left" style="font-size: 10pt">need to hold a hearing, require an extension of time for processing, in which
case the Administrator&#146;s decision shall be so mailed not later than 20&nbsp;days
after receipt of such request.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;A claimant who has followed the procedure in paragraphs (b)&nbsp;and (c)&nbsp;of
this section, but who has not obtained full relief on his claim for benefits,
may, within 90&nbsp;days following his receipt of the Administrator&#146;s written
decision on review, apply in writing to the Administrator for binding
arbitration of his claim before an arbitrator mutually acceptable to both
parties, the arbitration to be held in Detroit, Michigan, in accordance with
the commercial arbitration rules of the American Arbitration Association, as
then in effect. If the parties are unable to mutually agree upon an
arbitrator, then the arbitration proceedings shall be held before three
arbitrators, one of which shall be designated by the Company, one of which
shall be designated by the claimant and the third of which shall be designated
by the first two arbitrators in accordance with the commercial arbitration
rules referenced above. The arbitrator(s) sole authority shall be to interpret
and apply the provisions of this Agreement; the arbitrator(s) shall not change,
add to, or subtract from, any of its provisions. The arbitrator(s) shall have
the power to compel attendance of witnesses at the hearing. Any court having
jurisdiction may enter a judgment based upon such arbitration. All decisions
of the arbitrator(s) shall be final and binding on the claimant and the Company
without appeal to any court. Upon execution of this Agreement, the Executive
shall be deemed to have waived his right to commence litigation proceedings
outside of arbitration without the express written consent of the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<U><B>Legal Fees and Expenses</B></U>. In the event any arbitration or
litigation is brought to enforce any provision of this Agreement and the
Executive prevails, then Executive shall be entitled to recover from the
Company Executive&#146;s reasonable costs and expenses of such arbitration or
litigation, including reasonable fees and disbursements of counsel (both at
trial and in appellate proceedings). If the Company prevails, then each party
shall be responsible for its/his respective costs, expenses and attorneys fees,
and the costs of arbitration shall be equally divided. In the event that it is
determined that the Executive is entitled to compensation, legal fees and
expenses hereunder, Executive also shall be entitled to interest thereon,
payable to Executive at the prime rate of interest plus two percent. For
purposes of this Section&nbsp;16, &#147;prime rate&#148; shall be determined by the reference
to the prime rate established by Comerica Bank as in effect from time to time
during the period from the date such amounts should have been paid to the date
of actual payment. For purposes of the determining the date when legal fees
and expenses are payable, such amounts are not due until 30&nbsp;days after
notification to the Company of such amounts.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;<U><B>Nonalienation of Benefits</B></U>. Except in so far as this provision
may be contrary to applicable law, no sale, transfer, alienation, assignment,
pledge, collateralization or attachment of any benefits under this Agreement
shall be valid or recognized by the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;<U><B>ERISA</B></U>. This Agreement is an unfunded compensation arrangement
for a member of a select group of the Company&#146;s management and any exemptions
under ERISA, as applicable to such an arrangement, shall be applicable to this
Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;<U><B>Reporting and Disclosure</B></U>. The Company, from time to time,
shall provide government agencies with such reports concerning this Agreement
as may be required by law, and the Company shall provide the Executive with
such disclosure concerning this Agreement as may be required by law or as the
Company may deem appropriate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;<U><B>Notices</B></U>. Any notice required or permitted by this Agreement
shall be in writing, sent by registered or certified mail, return receipt
requested, addressed to the Board and the Company at the Company&#146;s then
principal office, or to the Executive at the Executive&#146;s last address on file
with the Company, as the case may be, or to such other address or addresses


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<P align="left" style="font-size: 10pt">as any party hereto may from time to time specify in writing for the purpose of
this Agreement in a notice given to the other parties in compliance with this
Section&nbsp;20. Notices shall be deemed given when received.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.&nbsp;<U><B>Miscellaneous/Severability</B></U>. A waiver of the breach of any term
or condition of this Agreement shall not be deemed to constitute a waiver of
any subsequent breach of the same or any other term or condition. This
Agreement is intended to be performed in accordance with, and only to the
extent permitted by, all applicable laws, ordinances, rules and regulations.
To the extent that any provision or benefit under this Agreement is not deemed
to be in accordance with any applicable law, ordinance, rule or regulation, the
noncomplying provision shall be construed, or benefit limited, to the extent
necessary to comply with all applicable laws, ordinances and regulations and
any such provision or benefit shall not affect the validity of any other
provision or benefit provided by this Agreement. The headings in this
Agreement are inserted for convenience of reference only and shall not be a
part of or control or affect the meaning of any provision hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;<U><B>Governing Law</B></U>. To the extent not preempted by Federal law,
this Agreement shall be governed and construed in accordance with the laws of
the State of Michigan.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.&nbsp;<U><B>Entire Agreement</B></U>. This document represents the entire
agreement and understanding of the parties with respect to the subject matter
of the Agreement and it may not be altered or amended except by an Agreement in
writing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>, the parties hereto have executed this Agreement as of
the day and year first written above.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="90%">
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<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><B>COMPANY:</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">CHAMPION ENTERPRISES, INC.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><HR size="1" noshade width="75%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>EXECUTIVE:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">William C. Griffiths</TD>
</TR>
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<P align="center" style="font-size: 10pt"><B>EXHIBIT A</B>



<P align="center" style="font-size: 10pt"><B>Gross-Up Provisions</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;In the event that the Executive shall become entitled to payments
and/or benefits provided by this Agreement or any other amounts in the &#147;nature
of compensation&#148; (whether pursuant to the terms of this Agreement or any other
plan, arrangement or agreement with the Company, any person whose actions
result in a change of ownership or effective control covered by Section
280G(b)(2) of the Code or any person affiliated with the Company or such
person) as a result of such change in ownership or effective control
(collectively the &#147;Company Payments&#148;), and such Company Payments will be
subject to the tax (the &#147;Excise Tax&#148;) imposed by Section&nbsp;4999 of the Code (and
any similar tax that may hereafter be imposed by any taxing authority) the
Company shall pay to the Executive an additional amount (the &#147;Gross-Up
Payment&#148;) such that the net amount retained by the Executive, after deduction
of any Excise Tax on the Company Payments and any U.S. federal, state, and for
local income or payroll tax upon the Gross-up Payment provided for by this
paragraph (a), but before deduction for any U.S. federal, state, and local
income or payroll tax on the Company Payments, shall be equal to the Company
Payments.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, if it shall be determined that the
Executive is entitled to a Gross-Up Payment, but that if the Company Payments
(other than that portion valued under Treasury Regulation&nbsp;Section&nbsp;1.280G, Q&#038;A
24(c)) (the &#147;Cash Payments&#148;) are reduced by the amount necessary such that the
receipt of the Company Payments would not give rise to any Excise Tax (the
&#147;Reduced Payment&#148;) and the Reduced Payment would not be less than 92.5% of the
Cash Payment, then no Gross-Up Payment shall be made to the Executive and the
Cash Payments, in the aggregate, shall be reduced to the Reduced Payments. If
the Reduced Payments is to be effective, payments shall be reduced in the
following order (1)&nbsp;acceleration of vesting of any stock options for which the
exercise price exceeds the then fair market value, (2)&nbsp;any cash severance based
on a multiple of Base Salary or Bonus, (3)&nbsp;any other cash amounts payable to
the Executive, (4)&nbsp;any benefits valued as parachute payments; and (5)
acceleration of vesting of any equity not covered by (1)&nbsp;above, unless the
Executive elects another method of reduction by written notice to the Company
prior to the change of ownership or effective control.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that the Internal Revenue Service or court ultimately makes a
determination that the excess parachute payments plus the base amount is an
amount other than as determined initially, an appropriate adjustment shall be
made with regard to the Gross-Up Payment or Reduced Payment, as applicable to
reflect the final determination and the resulting impact on whether the
preceding paragraph applies.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;For purposes of determining whether any of the Company Payments and
Gross-up Payments (collectively the &#147;Total Payments&#148;) will be subject to the
Excise Tax and the amount of such Excise Tax, (x)&nbsp;the Total Payments shall be
treated as &#147;parachute payments&#148; within the meaning of Section&nbsp;280G(b)(2) of the
Code, and all &#147;parachute payments&#148; in excess of the &#147;base amount&#148; (as defined
under Section&nbsp;280G(b)(3) of the Code) shall be treated as subject to the Excise
Tax, unless and except to the extent that, in the determination of the
Company&#146;s independent certified public accountants or tax counsel selected by
such accountants or the Company (the &#147;Accountants&#148;) such Total Payments (in
whole or in part) either do not constitute &#147;parachute payments,&#148; including
giving effect to the recalculation of stock options in accordance with Treasury
Regulation&nbsp;Section&nbsp;1.280G-1, Q&#038;A 33, represent
reasonable compensation for services actually rendered within the meaning of
Section


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<P align="left" style="font-size: 10pt">280G(b)(4) of the Code in excess of the &#147;base amount&#148; or are otherwise
not subject to the Excise Tax, and (y)&nbsp;the value of any non-cash benefits or
any deferred payment or benefit shall be determined by the Accountants in
accordance with the principles of Section&nbsp;280G of the Code. To the extent
permitted under Revenue Procedure 2003-68, the value determination shall be
recalculated to the extent it would be beneficial to the Company. The
determination of the Accountants shall be final and binding upon the Company
and the Executive, except to the extent provided herein with regard to Internal
Revenue Service determinations. The Company shall be responsible for all
charges of the Accountants.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In the event that the Excise Tax is subsequently determined by the
Accountants to be less than the amount taken into account hereunder at the time
the Gross-up Payment is made, the Executive shall repay to the Company, at the
time that the amount of such reduction in Excise Tax is finally determined, the
portion of the prior Gross-up Payment attributable to such reduction (plus the
portion of the Gross-up Payment attributable to the Excise Tax and U.S.
federal, state and local income tax imposed on the portion of the Gross-up
Payment being repaid by the Executive if such repayment results in a reduction
in Excise Tax or a U.S. federal, state and local income tax deduction), plus
interest on the amount of such repayment at the rate provided in Section
1274(b)(2)(B) of the Code. The Company shall be responsible for all charges of
the Accountant.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that the Excise Tax is later determined by the Accountant or
the Internal Revenue Service to exceed the amount taken into account hereunder
at the time the Gross-up Payment is made (including by reason of any payment
the existence or amount of which cannot be determined at the time of the
Gross-up Payment), the Company shall make an additional Gross-up Payment in
respect of such excess (plus any interest or penalties payable with respect to
such excess) at the time that the amount of such excess is finally determined.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Gross-up Payment or portion thereof provided for in subsection (c)
above shall be paid not later than the thirtieth (30th) day following an event
occurring which subjects the Executive to the Excise Tax; provided, however,
that if the amount of such Gross-up Payment or portion thereof cannot be
finally determined on or before such day, the Company shall pay to the
Executive on such day an estimate, as determined in good faith by the
Accountant, of the minimum amount of such payments and shall pay the remainder
of such payments (together with interest at the rate provided in Section
1274(b)(2)(B) of the Code), subject to further payments pursuant to subsection
(c)&nbsp;hereof, as soon as the amount thereof can reasonably be determined, but in
no event later than the ninetieth day after the occurrence of the event
subjecting the Executive to the Excise Tax. In the event that the amount of
the estimated payments exceeds the amount subsequently determined to have been
due, such excess shall constitute a loan by the Company to the Executive,
payable on the fifth day after demand by the Company (together with interest at
the rate provided in Section&nbsp;1274(b)(2)(B) of the Code).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;In the event of any controversy with the Internal Revenue Service (or
other taxing authority) with regard to the Excise Tax, the Executive shall
permit the Company to control issues related to the Excise Tax (at its
expense). In the event of any conference with any taxing authority as to the
Excise Tax or associated income taxes, the Executive shall permit the
representative of the Company to accompany the Executive, and the Executive and
the Executive&#146;s representative shall cooperate with the Company and its
representative.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Executive shall promptly deliver to the Company copies of any
written communications, and summaries of any verbal communications, with any
taxing authority regarding the Excise Tax covered by this provision.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Nothing in this Section is intended to violate the Sarbanes-Oxley Act
and to the extent that any advance or repayment obligation hereunder would do
so, such obligation shall be modified so as to make the advance a nonrefundable
payment to you and the repayment obligation null and void.



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