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Exhibit 10.1
 STOCK PURCHASE AGREEMENT
 BY AND AMONG
 CHAMPION RETAIL, INC,
a Michigan corporation,
 AND
 BAYSHORE ADVANTAGE LLC
a Delaware limited liability company,
 and the other parties hereto




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TABLE OF CONTENTS
 I. PURCHASE AND SALE OF THE SHARES
    
    
    11.1 Purchase and Sale
    
    
    11.2 Purchase Price
    
    
    11.3 Payment of Purchase Price and Other Amounts
    
    
    21.4 Calculation of Final Purchase Price
    
    
    3II. CLOSING
    
    
    42.1 Closing Date
    
    
    42.2 Deliveries at the Closing
    
    
    4III. REPRESENTATIONS AND WARRANTIES OF SELLER
    
    
    43.1 Authority and Enforceability
    
    
    43.2 No Conflict
    
    
    53.3 Ownership of the Shares
    
    
    53.4 Organization
    
    
    53.5 Qualification; Location of Business and Assets
    
    
    53.6 Subsidiaries and Investments
    
    
    53.7 Third-Party Consents and Approvals
    
    
    53.8 Capitalization
    
    
    53.9 Financial Condition and Liabilities
    
    
    63.10 No Undisclosed Liabilities
    
    
    63.11 Absence of Certain Changes
    
    
    63.12 Accounts Receivable
    
    
    73.13 Inventories
    
    
    73.14 Title
    
    
    83.15 Condition of Assets
    
    
    83.16 Owned Real Property
    
    
    93.17 Leased Real Property
    
    
    93.18 Leased Personal Property
    
    
    103.19 Employment Matters
    
    
    113.20 Employee Benefit Plans
    
    
    123.21 Material Contracts
    
    
    143.22 Customers and Suppliers
    
    
    153.23 Tax Returns and Taxes
    
    
    153.24 Permits
    
    
    163.25 Intellectual Property Rights
    
    
    163.26 No Pending Proceedings
    
    
    173.27 Compliance with Laws
    
    
    173.28 OSHA
    
    
    173.29 Environmental Matters
    
    
    173.30 Insurance Coverage
    
    
    183.31 Products Liability and Warranty Claims
    
    
    193.32 Brokers and Finders
    
    
    193.33 Related Party Transactions
    
    
    20
 -i-




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3.34 Disclosure
    
    
    20IV. REPRESENTATIONS AND WARRANTIES OF BUYER
    
    
    204.1 Organization
    
    
    204.2 Authority and Enforceability
    
    
    204.3 Third-Party Consents
    
    
    204.4 No Conflict or Violation
    
    
    204.5 Investment Intent
    
    
    214.6 Financing
    
    
    214.7 Brokers and Finders
    
    
    21V. PRE-CLOSING COVENANTS
    
    
    215.1 Access and Investigation
    
    
    215.2 Conduct of Business
    
    
    225.3 Consents and Approvals
    
    
    235.4 Best Efforts
    
    
    235.5 Update Schedules
    
    
    235.6 Exclusivity
    
    
    235.7 Confidentiality
    
    
    235.8 Employment Arrangements
    
    
    245.9 Financing
    
    
    245.10 Permits
    
    
    245.11 Form of Entity Conversion
    
    
    24VI. ADDITIONAL COVENANTS
    
    
    246.1 Assistance in Proceedings
    
    
    246.2 Retention of and Access to Books and records
    
    
    246.3 Further Assurances
    
    
    256.4 Press Releases
    
    
    256.5 Transfer Taxes
    
    
    256.6 Use of Sellers Licenses
    
    
    256.7 Company Guarantee
    
    
    256.8 Removal of Champion Assets
    
    
    25VII. CONDITIONS TO CLOSING
    
    
    257.1 Conditions to Obligations of Buyer
    
    
    257.2 Conditions to Obligations of Seller
    
    
    27VIII. INDEMNIFICATION
    
    
    278.1 Indemnification By Seller
    
    
    278.2 Indemnification by Buyer
    
    
    288.3 Defense of Third-Party Claims
    
    
    288.4 Other Claims
    
    
    308.5 Survival
    
    
    308.6 Indemnification Limitations
    
    
    308.7 Set-Off Rights
    
    
    318.8 Exclusive Remedy
    
    
    32
 -ii-




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IX. TERMINATION
    
    
    329.1 Termination
    
    
    329.2 Effect of Termination
    
    
    33X. OTHER PROVISIONS
    
    
    3310.1 Appendices, Exhibits and Schedules
    
    
    3310.2 Amendment
    
    
    3310.3 No Waiver
    
    
    3310.4 Entire Agreement; No Third Party Beneficiaries
    
    
    3310.5 Governing Law
    
    
    3410.6 Waiver of Jury Trial
    
    
    3410.7 Notices
    
    
    3410.8 Counterparts; Headings
    
    
    3510.9 Expenses
    
    
    3510.10 Construction
    
    
    3510.11 Successors and Assigns
    
    
    3610.12 Buyer Guarantee
    
    
    3610.13 Seller Guarantee
    
    
    36
   Schedule 1.3(a)
    
    Estimated Purchase PriceSchedule 3.3
    
    Ownership of the SharesSchedule 3.7
    
    Third-Party ConsentsSchedule 3.9
    
    Exceptions to GAAPSchedule 3.11
    
    Absence of Certain ChangesSchedule 3.14
    
    LiensSchedule 3.15
    
    Condition of AssetsSchedule 3.16
    
    Owned Real PropertySchedule 3.17
    
    Leased Real PropertySchedule 3.18
    
    Leased Personal PropertySchedule 3.19
    
    Employment MattersSchedule 3.20
    
    Employee Benefit PlansSchedule 3.21(a)
    
    Material ContractsSchedule 3.21(b)
    
    Material Contracts  Required ConsentsSchedule 3.21(c)
    
    Other Material ContractsSchedule 3.22
    
    Customers and SuppliersSchedule 3.23
    
    Tax Returns and TaxesSchedule 3.24
    
    PermitsSchedule 3.25
    
    Intellectual Property RightsSchedule 3.26
    
    LitigationSchedule 3.27
    
    Compliance with Laws
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Schedule 3.29
    
    Environmental MattersSchedule 3.30
    
    Insurance CoverageSchedule 3.31
    
    Product Liability and Warranty ClaimsSchedule 3.33
    
    Related Party TransactionsSchedule 5.2
    
    Exceptions to Conduct of BusinessSchedule A-1
    
    General Contracts
 -iv-




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STOCK PURCHASE AGREEMENT
 Agreement , Buyer Seller
 RECITALS
 Company
 Business
 Shares Shares
  AGREEMENTS
  I. PURCHASE AND SALE OF THE SHARES
 1.1 Purchase and Sale.
 1.2 Purchase Price. Purchase
Price
  plus minus Net Working Capital Adjustment Closing Net Working
Capital
 1




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Target Net
Working Capital
 1.3 Payment of Purchase Price and Other Amounts.
 Schedule 1.3(a) Schedule 1.3(a Estimated Purchase Price
  Closing Payment less
 Subordinated Note Line of Credit Subordination Agreement
   2




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1.4 Calculation of Final Purchase Price.
 th Closing Financial
Information
 Notice of Disagreement
 Reviewing Accountant
 3




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Final Purchase Price
 II. CLOSING
 2.1 Closing Date. Closing Closing Date
 2.2 Deliveries at the Closing
   III. REPRESENTATIONS AND WARRANTIES OF SELLER
  3.1 Authority and Enforceability.
 4




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3.2 No Conflict.
 3.3 Ownership of the Shares.
 3.4 Organization.
 3.5 Qualification; Location of Business and Assets.
 3.6 Subsidiaries and Investments.
 3.7 Third-Party Consents and Approvals. Schedule 3.7
 3.8 Capitalization.
 5




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3.9 Financial Condition and Liabilities. Schedule 3.9 Financial Statements Pre-Closing Balance Sheet Schedule 3.9
 3.10 No Undisclosed Liabilities. Schedule 3.9
 3.11 Absence of Certain Changes.
    6




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Schedule 3.11(e)
  Schedule 3.11(g)
 Schedule 3.11(h)
     3.12 Accounts Receivable.
 3.13 Inventories.
 7




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3.14 Title. Schedule 3.14
 3.15 Condition of Assets. Schedule 3.15
 8




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3.16 Owned Real Property.
 Schedule 3.16(a) Owned Real Property
  Schedule 3.16(c)
  3.17 Leased Real Property.
 Schedule 3.17(a) Leased Real
 9




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Property Real Property Leases
  Schedule 3.17(c)
 3.18 Leased Personal Property. Schedule 3.18
 10




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3.19 Employment Matters.
 Schedule 3.19
 Schedule 3.19
       11




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WARN Schedule 3.19
  3.20 Employee Benefit Plans
 Schedule 3.20(a)
 Schedule 3.20(b)
  12




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Schedule 3.20(d)
   et seq.
 Schedule 3.20(e)
  13




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Schedule 3.20(g)
 Schedule 3.20(h)
 Schedule 3.20
 3.21 Material Contracts.
 Schedule 3.21 Schedule 3.17 Schedule 3.18 Material Contracts
 Schedule 3.21(b) Schedule 3.21(b)
 14




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Schedule 3.21(c)
     3.22 Customers and Suppliers. Schedule 3.22 Significant Customer Significant Supplier Schedule 3.22
 3.23 Tax Returns and Taxes. Schedule 3.23 Schedule 3.23
 15




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Schedule 3.23 Schedule 3.23
 3.24 Permits. Schedule 3.24 Schedule 3.24
 3.25 Intellectual Property Rights.
 Schedule 3.25
 Schedule 3.25 Registered Intellectual Property
 Schedule 3.25
 16




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3.26 No Pending Proceedings. Schedule 3.26
 3.27 Compliance with Laws. Schedule 3.27
 3.28 OSHA.
 3.29 Environmental Matters. Schedule 3.29
   17




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Schedule 3.29
     3.30 Insurance Coverage. Schedule 3.30
 18




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Schedule 3.30 Schedule 3.30
 3.31 Products Liability and Warranty Claims Schedule 3.31
     3.32 Brokers and Finders.
 19




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3.33 Related Party Transactions Schedule 3.33
 3.34 Disclosure
 IV. REPRESENTATIONS AND WARRANTIES OF BUYER
  4.1 Organization.
 4.2 Authority and Enforceability.
 4.3 Third-Party Consents.
 4.4 No Conflict or Violation.
 20




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4.5 Investment Intent.
 4.6 Financing
 4.7 Brokers and Finders
 V. PRE-CLOSING COVENANTS
 5.1 Access and Investigation. Buyer Group
 21




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5.2 Conduct of Business.
   Schedule 5.2(a)
          22




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5.3 Consents and Approvals. Schedule 3.7
 5.4 Best Efforts.
 5.5 Update Schedules.
   5.6 Exclusivity.
 5.7 Confidentiality.
 23




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5.8 Employment Arrangements.
 5.9 Financing
 5.10 Permits.
   5.11 Form of Entity Conversion.
 VI. ADDITIONAL COVENANTS
 6.1 Assistance in Proceedings.
 6.2 Retention of and Access to Books and records.
 24




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6.3 Further Assurances.
 6.4 Press Releases.
 6.5 Transfer Taxes
 6.6 Use of Sellers Licenses.
 6.7 Company Guarantee.
 6.8 Removal of Champion Assets.
 VII. CONDITIONS TO CLOSING
 7.1 Conditions to Obligations of Buyer.
  25




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Schedule 7.1(d)
  Supply Agreement
 Interim
Services Agreement
      26




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7.2 Conditions to Obligations of Seller.
   Exhibit 7.2(c)
   VIII. INDEMNIFICATION
 8.1 Indemnification By Seller Buyers Indemnified Persons Losses
   Schedule 3.26 Subject Litigation
 27




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8.2 Indemnification by Buyer. Sellers Indemnified Persons
        8.3 Defense of Third-Party Claims. Indemnified
Party Indemnifying Party
 28




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provided, however, that
     Schedule 3.26
 29




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8.4 Other Claims.
 8.5 Survival.
 8.6 Indemnification Limitations.
 30




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Basket provided
 provided
    8.7 Set-Off Rights
 31




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8.8 Exclusive Remedy.
 IX. TERMINATION
 9.1 Termination.
  Final Termination Date provided that provided further
that
    32




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9.2 Effect of Termination. provided however
 X. OTHER PROVISIONS
 10.1 Appendices, Exhibits and Schedules.
 10.2 Amendment.
 10.3 No Waiver.
 10.4 Entire Agreement; No Third Party Beneficiaries.
 33




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10.5 Governing Law.
 10.6 Waiver of Jury Trial
 10.7 Notices.
  
  
  34




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10.8 Counterparts; Headings.
 10.9 Expenses.
 10.10 Construction.
  35




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10.11 Successors and Assigns. provided provided
 10.12 Buyer Guarantee. Buyer Guarantor
 10.13 Seller Guarantee. Seller Guarantor
 36




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37




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BUYER:
    
    BAYSHORE ADVANTAGE LLCBy
    
    
    
    /s/ James D. NicholsName:
    
    James D. NicholsTitle:
    
    Managing MemberSELLER:
    
    CHAMPION RETAIL, INC.By
    
    
    
    /s/ John J. Collins, Jr.Name:
    
    John J. Collins, Jr.Title:
    
    Vice PresidentBUYER GUARANTOR:
    
    ENCORE PARTNERS, LLCBy
    
    
    
    /s/ James D. NicholsName:
    
    James D. NicholsTitle:
    
    Managing MemberSELLER GUARANTOR:
    
    CHAMPION ENTERPRISES, INC.By
    
    
    
    /s/ John J. Collins, Jr.Name:
    
    John J. Collins, Jr.Title:
    
    Senior Vice President
 38




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APPENDIX A
 Definitions
  Affiliate
 Agreement
 Assumed Liabilities
 Basket
 Business
 Business Day
 Buyer
 Buyer Deals in Progress
 Buyer Group
 Buyer Guarantor
 Buyers Indemnified Persons
 Closing
 Closing Date
 Closing Financial Information
 Closing Net Working Capital
 Closing Payment
 COBRA
 APP A-1




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Code
 Company
 Consent
 Contract
 Control
 Current Assets
 Deals in Progress
 Employee Plans
 Environmental Claim
 Environmental Laws
 APP A-2




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Environmental Permits
 ERISA
 ERISA Affiliate
 Estimated Purchase Price
 Excluded Liabilities
 Final Purchase Price
 Final Termination Date
 APP A-3




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Financial Statements
 FMLA
 GAAP
 General Contracts Schedule A-1
 Governmental Authority
 Governmental Order
 Hazardous Substance
 HIPAA
 HSR Act
 Indemnified Party
 Indemnifying Party
 Intellectual Property Rights
 Marks
 Patents
 Copyrights
  APP A-4




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Trade
Secrets
 Software
 Net Names
 Interim Services Agreement
 Inventory
    knowledge of Seller
 Law
 Leased Real Property
 Legal Expenses
 Liabilities
 Lien
 Line of Credit
 APP A-5




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Losses
 Material Adverse Effect provided however
 Material Contracts
 Net Working Capital Adjustment
 New Homes Inventory
 Notice of Disagreement
 Ordinary Course of Business
 Ordinary Course Warranty Claims
 OSHA
 Other Inventory
 Owned Real Property
 Permits
 Permitted Lien
 APP A-6




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Person person
 Personal Property
 Pre-Closing Balance Sheet
 Proceeding
 Purchase Price
 Real Property
 Real Property Leases
 Receivables
 Registered Intellectual Property
 APP A-7




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Release
 Representative
 Repurchase Agreement
 Reviewing Accountant
 Securities Act
 Seller
 Seller Deals in Progress
 Seller Guarantor
 Sellers Indemnified Persons
 Shares
 Significant Customer
 Significant Supplier
 Subject Litigation
 Subordinated Note
 Subordination Agreement
 Supply Agreement
 Target Net Working Capital
 Tax Taxes
 APP A-8




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Tax Return
 WARN
 WHCRA
 WIP Inventory
 APP A-9