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Exhibit 10.4    
  

 
 

FLEETWOOD ENTERPRISES, INC.
  EDWARD B. CAUDILL RESTRICTED STOCK PLAN AND AGREEMENT    
  

        Fleetwood
Enterprises, Inc., a Delaware corporation ("Company"), has elected to grant to Edward B. Caudill
("Grantee") an award of restricted stock on the terms and conditions set forth in this Restricted Stock Plan and Agreement (the
"Agreement") effective as of August 12, 2002 (the "Grant Date"). The Company and Grantee have
entered into that certain Employment Agreement, dated as of the date hereof, pertaining to Grantee's appointment to the office of President and Chief Executive Officer (the
"Employment Agreement"). The purpose of the Agreement is to enable the Company to retain Grantee's services as the Company's Chief Executive Officer and
the granting of common stock under this Agreement is essential to induce Grantee to accept employment with the Company. 

        1.    Grant of Restricted Stock.    The Company hereby grants to Grantee one hundred
forty-seven thousand eight hundred and sixty (147,860) shares of the Company's common stock (the "Granted Stock"), subject to the terms, conditions and
restrictions set forth below. 

        2.    Grantee Representations.    Grantee hereby represents, warrants, acknowledges
and
covenants to the Company that Grantee is acquiring the Granted Stock for his own account, not as nominee or agent, for investment and not with a view to, or for resale in connection with, any
distribution or public offering thereof within the meaning of the Securities Act of 1933, as amended (the "Securities Act"). Grantee does not have any
contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any third person with respect to any of the Granted Stock. 

        3.    Restrictions on the Granted Stock.    Any Granted Stock acquired by Grantee
will be
subject to the following restrictions: 

        (a)    No Transfer.    The shares of Granted Stock (including any shares received by Grantee
with respect to shares of Granted Stock as a result of stock dividends, stock splits or any other form of recapitalization or a similar transaction affecting the Company's securities without receipt
of consideration) may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, alienated or encumbered until the restrictions set forth in  Section 3(b) are removed or
expire as provided in Section 3(c), and any additional
requirements or restrictions contained in this Agreement have been satisfied, terminated or expressly waived by the Company in writing. 

        (b)    Restrictions in Event of Termination.    In the event Grantee's service as an employee
of the Company terminates, unless waived by the Company in its discretion, the Company will acquire, at no cost, and Grantee shall transfer to the Company, all shares of Granted Stock (including any
shares received by Grantee with respect to shares of Granted Stock as a result of stock dividends, stock splits or any other form of recapitalization or a similar transaction affecting the Company's
securities without receipt of consideration) that are, at the date of such termination, still subject to the vesting restrictions imposed under this  Section 3, provided
however, that if Grantee's employment is terminated as a result of a
Qualifying Termination, and if Grantee delivers a fully-executed release and waiver of all claims against the Company, then, upon expiration of any applicable revocation period contained in the
release and waiver, the restrictions set forth in this Section 3(b) shall expire and lapse as of the date of the Qualifying Termination. For
purposes hereof, a "Qualifying Termination" shall be as defined in Section 3(b) and Section 4(c) of Grantee's Employment Agreement. 

        (c)    Removal of Restrictions in Event of Termination.    The restrictions imposed under the
foregoing provisions of this Section 3 will expire and be removed, and the shares of Granted Stock (including any shares received by Grantee with
respect to shares of Granted Stock as a result of stock dividends, 

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stock splits or any other form of recapitalization or a similar transaction affecting the Company's securities without receipt of consideration) acquired by Grantee under this Agreement will vest as
follows (the "Vesting Schedule"): 

	(i)
	96,109
shares will vest on the first anniversary of the Grant Date,

	(ii)
	44,358
shares will vest on the second anniversary of the Grant Date, and

	(iii)
	7,393
shares will vest on the third anniversary of the Grant Date. 

The
Company shall have the discretion to accelerate the vesting schedule in the event of death, disability, retirement, change in control of the Company or otherwise in situations specifically set
forth in this Agreement. 

        (d)    No Registration; Legends on Certificates.    Grantee understands that the Granted Stock
has not been registered under the Securities Act, or any state securities law, by reason of a specific exemption therefrom. Therefore, unless a subsequent disposition thereof is registered under the
Securities Act or is exempt from such registration, Grantee may be required to bear the economic risk of such investment indefinitely. Each certificate representing the Granted Stock will be endorsed
with substantially the following legend: 

The securities evidenced by this certificate have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be sold, transferred,
assigned or hypothecated unless (i) there is an effective registration statement under the Securities Act covering such securities, (ii) the sale is made in accordance with
Rule 144 under the Securities Act and the Company and its legal counsel are provided with reasonably satisfactory evidence that the requirements of Rule 144 have been satisfied, or
(iii) the Company receives an opinion of counsel for the holder of these securities, reasonably satisfactory to the Company, stating that such sale, transfer, assignment or hypothecation is
exempt from the registration and prospectus delivery requirements of the Securities Act.

Further,
each certificate representing any unvested portion of the Granted Stock will be endorsed with substantially the following legend: 

The securities evidenced by this certificate are subject to certain limitations on transfer as set forth in that certain Edward B. Caudill Restricted Stock Plan and Agreement,
dated as of August 12, 2002, between the Company and Edward B. Caudill (a copy of which is available for inspection at the offices of the Company).

Grantee
understands that the Company may instruct any transfer agent not to register the transfer of any of the Granted Stock, unless the conditions specified in the foregoing legends are satisfied. 

        4.    Voting and Other Rights.    Notwithstanding anything to the contrary in the
foregoing,
during the period prior to the lapse and removal of the restrictions set forth in Section 3, except as otherwise provided herein, Grantee will
have all of the rights of a stockholder with respect to all of the Granted Stock, including without limitation the right to vote such Granted Stock and the right to receive all dividends or other
distributions with respect to such Granted Stock. In connection with the payment of such dividends or other distributions, the Company will be entitled to deduct any taxes or other amounts required by
any governmental authority to be withheld and paid over to such authority for Grantee's account. 

        5.    Escrow of Unvested Shares.    With respect to each unvested share of Granted
Stock
(including any shares received by Grantee with respect to shares of Granted Stock as a result of stock dividends, stock splits or any other form of recapitalization or a similar transaction affecting
the Company's securities without receipt of consideration), the Secretary of the Company, or such other escrow holder as the Secretary may appoint, shall retain physical custody of the certificate
representing such share until the restrictions imposed under this Agreement with respect to such share expire or shall have been removed, whereupon the certificate representing such share shall be
delivered to Grantee; provided, however, that if 

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other still unvested shares of Granted Stock are also represented by the same stock certificate, then such certificate shall be retired and new certificates representing the vested and unvested
portions of the Granted Stock shall be issued in place of the existing certificate. The certificate representing the vested Granted Stock shall be delivered to the Grantee and the certificate
representing the still unvested shares of Granted Stock shall be retained by the escrow holder. 

        6.    Expiration of Restrictions.    As soon as practicable after the lapse and
removal of the
restrictions applicable to all or any portion of the Granted Stock as provided in Section 3, the Company will release the certificate(s)
representing such Granted Stock to Grantee, provided that (a) Grantee has paid to the Company, by cash or check, an amount sufficient to satisfy
any taxes or other amounts required by any governmental authority to be withheld and paid over to such authority for Grantee's account, or otherwise made arrangements satisfactory to the Company for
the payment of such amounts through withholding or otherwise, and (b) Grantee has, if requested by the Company, made appropriate representations in a form satisfactory to the Company that such
Granted Stock will not be sold other than (i) pursuant to an effective registration statement under the Securities Act, or an applicable exemption from the registration requirements of such
Act; (ii) in compliance with all applicable state securities laws and regulations; and (iii) in compliance with all terms and conditions of this Agreement. 

        7.    Section 83(b) Election.    Grantee understands that Grantee may make an
election
pursuant to Section 83(b) of the Internal Revenue Code (the "Code") within thirty (30) days after the date Grantee acquired the Granted
Stock hereunder, or comparable provisions of any state tax law, to include in Grantee's gross income the fair market value (as of the date of acquisition) of the Granted Stock. Grantee may make such
an election only if, prior to making any such election, Grantee (a) notifies the Company of Grantee's intention to make such election, by
delivering to the Company a copy of the fully-executed Section 83(b) Election Form attached hereto as Exhibit A, and (b) pays to
the Company an amount sufficient to satisfy any taxes or other amounts required by any governmental authority to be withheld or paid over to such authority for Grantee's account, or otherwise makes
arrangements satisfactory to the Company for the payment of such amounts through withholding or otherwise. Grantee understands that if Grantee does not make a proper and timely Section 83(b)
election, generally under Section 83 of the Code, at the time the forfeiture restrictions applicable to the Granted Stock lapse, Grantee will recognize ordinary income and be taxed in an amount
equal to the fair market value (as of the date the forfeiture restrictions lapse) of the Granted Stock. For this purpose, the term "forfeiture
restrictions" includes the right of the Company to acquire the Granted Stock pursuant to its rights under Section 3(b) of
this Agreement. 

        Grantee acknowledges that it is Grantee's sole responsibility, and not the Company's, to file a timely election under Section 83(b), even if Grantee
requests the Company or its representative to make this filing on
Grantee's behalf. Grantee is relying solely on Grantee's advisors with respect to the decision as to whether or not to file a Section 83(b) election.

        8.    Merger, Consolidation or Reorganization.    In the event of a merger,
consolidation or
other reorganization of the Company in which the Common Stock of the Company is exchanged for cash, securities or other property ("Exchange
Consideration"), Grantee will be entitled to receive a proportionate share of the Exchange Consideration in exchange for the Granted Stock Grantee acquired;  provided, however,
that Grantee's share of the Exchange Consideration shall be subject to the vesting restrictions imposed under  Section 3, unless the Company's Board of Directors, in its discretion, accelerates the
Vesting Schedule. 

        9.    No Right to Continued Employment.    This Agreement does not confer upon
Grantee any
right to continue as an employee of the Company or one of its subsidiaries, nor does it limit in any way the right of the Company or a subsidiary to terminate Grantee's services to the Company or the
subsidiary at any time, with or without cause. Unless otherwise set forth in a written agreement binding upon the Company or the subsidiary, Grantee's employment by the Company or a subsidiary is "at
will." Any questions as to whether 

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and when there has been a termination of Grantee's employment, the reason (if any) for such termination, and/or the consequences thereof under the terms of this Agreement, shall be determined by the
Company's Board of Directors in its sole discretion, and the Board of Directors' determination thereof shall be final, binding and conclusive. 

        10.    Good Faith Actions.    All actions taken and all interpretations and
determinations
made with respect to this Agreement by the Company's Board of Directors or a committee thereof in good faith shall be final and binding upon Grantee, the Company and all other interested parties with
respect to all matters relating to this Agreement. No members of the Company's Board of Directors or a committee thereof shall be personally liable for any action, determination or interpretation made
in good faith with respect to this Agreement. 

        11.    Compliance with Laws.    This Agreement and the issuance and delivery of the
Granted
Stock and the payment of money under this Agreement are subject to compliance with all applicable federal and state laws, rules and regulations (including but not limited to state and federal
securities law) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. The
Company will be under no obligation to register or qualify the issuance of the Granted Stock under the Securities Act or applicable state securities laws and the Company shall not be obligated to
grant, issue, deliver or effect any transfer of Granted Stock unless such grant, issuance, delivery or transfer is at such time effectively registered or exempt from registration under applicable
state and federal securities laws. To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 

        12.    Lock-Up Agreements.    Grantee agrees as a condition to receipt of the
Granted Stock that, in connection with any public offering by the Company of its equity securities and upon the request of the Company and the principal underwriter (if any) in such public offering,
the Granted Stock may not be sold, offered for sale, encumbered, or otherwise disposed of or subjected to any transaction that will involve any sales of securities of the Company, without the prior
written consent of the Company or such underwriter, as the case may be, for a period of not more than 365 days after the effective date of the registration statement for such public offering.
The Grantee will, if requested by the Company or the principal underwriter, enter into a separate agreement to the effect of this Section 12. 

        13.    Governing Law.    This Agreement shall be governed by, interpreted under, and
construed
and enforced in accordance with the internal laws, and not the laws pertaining to conflicts or choice or laws, of the State of California applicable to agreements made and to be performed wholly
within the State of California. 

        14.    No Assignment.    Neither this Agreement nor any rights granted herein are
assignable
by Grantee. 

        15.    Interpretation.    Headings herein are for convenience of reference only, do
not
constitute a part of the Agreement, and will not affect the meaning or interpretation of the Agreement. References herein to Sections are references to the referenced Section hereof, unless otherwise
specified. 

        16.    Severability.    Should any provision of this Agreement be held to be
unenforceable or
invalid for any reason, the remaining portions or provisions of this Agreement shall be unaffected by such holding. 

        17.    Agreement Binding on Successors.    This Agreement shall be binding upon the
successors
and assigns of the Company and upon Grantee and Grantee's heirs, executors, administrators, personal representatives, and successors in interest. 

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        18.    Counterparts.    This Agreement may be executed in two or more counterparts,
each of
which shall be deemed an original and all of which together shall be deemed one instrument. 

	
August 12, 2002	
 	

 
	

COMPANY	
 	

GRANTEE
	

Fleetwood Enterprises, Inc.,	
 	

 
	

By:	
 	

/s/ Forrest D. Theobald
 (Signature)	
 	

/s/ Edward B. Caudill
 (Signature)
	

 	
 	

Forrest D. Theobald,

Sr. Vice President and General Counsel	
 	

Edward B. Caudill,

President and Chief Executive Officer
	 	 	(Printed Name and Title)	 	(Printed Name and Title)

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Exhibit 10.4

FLEETWOOD ENTERPRISES, INC. EDWARD B. CAUDILL RESTRICTED STOCK PLAN AND AGREEMENTQuickLinks
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Exhibit 10.5    
  

 
 

FLEETWOOD ENTERPRISES, INC.
  EDWARD B. CAUDILL STOCK OPTION PLAN AND AGREEMENT    
  

        THIS STOCK OPTION PLAN AND AGREEMENT (this "Agreement") is made effective as of August 12, 2002 (the
"Grant Date"), by and between FLEETWOOD ENTERPRISES, INC., a Delaware corporation (the
"Company"), and Edward B. Caudill ("Optionee"). 

        A.    The
Company and Optionee have entered into that certain Employment Agreement dated as of the Grant Date pertaining to Optionee's appointment to the office of President
and Chief Executive Officer (the "Employment Agreement"). 

        B.    As
a part of Optionee's appointment, and effective the Grant Date, the Company has granted to Optionee a nonstatutory stock option (the
"Option") to purchase shares of the common stock of the Company (the "Common Stock") on the terms and
conditions set forth herein. This Agreement memorializes the terms and conditions upon which the board of directors of the Company (the "Board") granted
the Option to Optionee. 

        NOW,
THEREFORE, in consideration of the foregoing and of the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows: 

AGREEMENT  

        1.    Grant of Option.    Optionee may, at Optionee's election and upon the terms and
conditions set forth herein, purchase all or any part of an aggregate of 352,698 shares of Common Stock (the "Optioned Shares") at the price per share
equal to $2.57 (the "Option Price"). The Option Price equals the closing price of the Common Stock on the Grant Date. 

        2.    Vesting Schedule.    The Option shall vest and become exercisable according to
the
following vesting schedule: 

	(a)
	1/3
(117,566 shares) on August 12, 2003;

	(b)
	1/3
(117,566 shares) on August 12, 2004; and

	(c)
	1/3
(117,566 shares) on August 12, 2005. 

        3.    Exercise of Option.    

        (a)    Extent of Exercise.    The Option may be exercised at the time or after installments vest as specified in  Section 2 to
this Agreement with respect to all or part of the Optioned Shares covered by such vested installments, subject to the further
restrictions contained in this Agreement. In the event that Optionee exercises the Option for less than the full number of Optioned Shares included within a vested installment, Optionee shall be
entitled to exercise the Option (in one or more subsequent increments) for the balance of the Optioned Shares included in said vested installment; provided,
however, that in no event shall Optionee be entitled to exercise the Option for fractional shares of Common Stock or for a number of shares exceeding the maximum number of
Optioned Shares. 

        (b)    Procedure.    The Option shall be deemed to be exercised when the Secretary of the Company receives written
notice of exercise from or on behalf of Optionee, together with payment of the applicable Option Price and any amounts required under  Section 3(c). The Option Price shall be payable upon exercise
in (i) legal tender of the United States; or (ii) such other
consideration as the Company may deem acceptable in any particular instance; provided, however, that the Company may, in its discretion and to the
extent permitted by applicable law, including Section 13 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), allow exercise
of the Option in a broker- 

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assisted or similar transaction in which the Option Price and any amounts required under Section 3(c) are not received by the Company until
promptly after exercise. 

        (c)    Withholding Taxes.    Whenever shares of Common Stock are to be issued upon exercise of the Option, the Company
shall have the right to require Optionee to remit to the Company an amount sufficient to satisfy any federal, state and local withholding tax requirements prior to such issuance. The Company may, in
its discretion, allow satisfaction of tax withholding requirements by accepting delivery of Common Stock. 

        4.    Term of Option.    Unless earlier terminated as provided in  Section 5, the Option shall automatically expire and terminate, and thereby become unexercisable, on the tenth (10th) anniversary of the Grant
Date. 

        5.    Effect of Termination.    

        (a)    Termination for Cause.    In the event of termination of Optionee's employment for Cause, this Option, whether
vested or unvested, shall terminate and expire as of the date of termination. For purposes hereof, "Cause" shall be as defined in the Employment Agreement. 

        (b)    Qualifying Termination.    In the event of a Qualifying Termination of Optionee's employment, provided that
Optionee delivers a fully-executed release and waiver of all claims against the Company, then upon expiration of any applicable revocation period contained in the release and waiver, all of the
Optioned Shares shall become fully vested and exercisable, as of the date of termination, and the Option shall expire and become unexercisable at the earlier of (i) the expiration date of this
Option, or (ii) three (3) calendar months after the date of termination. For purposes hereof, a "Qualifying Termination" shall be as defined in Section 3(b) and
Section 4(c) of Optionee's Employment Agreement. 

        (c)    Death or Disability.    In the event of the death or Disability of Optionee during the term of the Option,
Optionee (or Optionee's legal representative) shall have twelve (12) months after the date of termination within which to exercise the Option to the extent that it is exercisable on the date of
termination, regardless of the date the Option expires in accordance with its terms. Any unvested portion of the Option shall expire and terminate as of the termination date. For purposes hereof,
"Disability" shall be as defined in Optionee's Employment Agreement. In the event of the death of Optionee while he is an employee of the Company or within the period after termination of such status
during which he is permitted to exercise the Option, the Option may be exercised by any person or persons designated by Optionee on a beneficiary designation form adopted by the Company for such
purpose or, if there is no effective beneficiary designation form on file with the Company, by the executors or administrators of Optionee's estate or by any person or persons who shall have acquired
the Option directly from Optionee by his will or the applicable laws of descent and distribution. 

        (d)    Normal Retirement.    In the event of the normal retirement of Optionee, during the term of the Option, any
unvested portion of the Option shall expire and terminate as of the termination date, and any portion of the Option that is vested on the termination date shall expire and become unexercisable at the
earlier of (i) the expiration date of this Option, or (ii) three (3) years after the date of termination. 

        (e)    Other Terminations.    In the event of any termination other than for Cause, Qualifying Termination with a
fully-executed release and waiver of all claims by Optionee against the Company, death, Disability, or normal retirement during the term of the Option, any unvested portion of the Option shall expire
and terminate as of the termination date, and any portion of the Option that is vested on the termination date shall expire and become unexercisable at the earlier of (i) the expiration date of
this Option, or (ii) three (3) calendar months after the date of termination. 

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        6.    Anti-Dilution Adjustments.    If the outstanding shares of Common Stock of
the Company are increased, decreased, changed into or exchanged for a different number or kind of shares of the Company through reorganization, recapitalization, reclassification, stock dividend,
stock split or reverse stock split, upon authorization of the Board or the Compensation Committee of the Board (the "Committee"), an appropriate and
proportionate adjustment shall be made in the number or kind of Optioned Shares and the Option Price; provided, however, that no such adjustment need be
made if, upon the advice of counsel, the Board or the Committee determines that such adjustment may result in the receipt of federally taxable income to Optionee, to holders of other derivative
securities of the Company or holders of Common Stock or other classes of the Company's securities. 

        7.    Change in Control.    

        (a)    Effect of Change in Control.    As of the effective time and date of any Change in Control, this Option
(whether or not vested) will automatically terminate unless: (i) provision is made in writing in connection with such transaction for the continuance and assumption of this Option, or for the
substitution for such new awards covering the securities of a successor entity or an affiliate thereof, with appropriate adjustments as to the number and kind of securities and exercise prices or
other measurement criteria, in which event this Option will continue or be replaced, as the case may be, in the manner and under the terms so provided; or (ii) the Board otherwise provides in
writing for such adjustments as it deems appropriate in the terms and conditions of this Option (whether or not vested), including, without limitation, (A) accelerating the vesting of this
Option, and/or (B) providing for the cancellation of this Option and its automatic conversion into the right to receive the securities, cash or other consideration that a holder of the shares
underlying this Option would have been entitled to receive upon consummation of such Change in Control had such shares been issued and outstanding immediately prior to the effective date and time of
the Change in Control (net of the appropriate option exercise prices). If, pursuant to the foregoing provisions of this Section 7(a), this Option
terminates by reason of the occurrence of a Change in Control without provision for any of the action(s) described in clause (i) or (ii) hereof, then subject to  Section 4 of this
Agreement, the Optionee will have the right, at such time prior to the consummation of the Change in Control as the Board
designates, to exercise or receive the full benefit of this Option to the full extent not theretofore exercised, including any installments which have not yet become vested. 

        (b)    Definition of Change in Control.    A "Change in Control" shall be as defined in the Employment Agreement. 

        8.    Delivery of Certificates.    As soon as practicable after any proper exercise
of the
Option in accordance with the provisions of this Agreement, the Company shall deliver to Optionee at the main office of the Company, or such other place as shall be mutually acceptable, a certificate
or certificates representing such shares of Common Stock to which Optionee is entitled upon exercise of the Option. 

        9.    No Rights in Shares Before Issuance and Delivery.    Neither Optionee, his
estate nor
his transferees by will or the laws of descent and distribution shall be, or have any rights or privileges of, a stockholder of the Company with respect to any shares issuable upon exercise of the
Option, unless and until certificates representing such shares shall have been issued and delivered. No adjustment will be made for a dividend or their rights where the record date is prior to the
date such stock certificates are issued. 

        10.    Nonassignability.    The Option is not assignable or transferable by Optionee
except by
will, by the laws of descent and distribution, pursuant to a qualified domestic relations order, or, in the discretion of the Company and under circumstances that would not adversely affect the
interests of the Company, pursuant to a transfer for estate planning purposes or pursuant to a nominal transfer that does not result in a change in beneficial ownership. Any permitted transfer of the
Option shall not prevent or otherwise modify termination of the Option and its vesting following Optionee's termination of employment (as provided in  Section 5 above) or in connection with a Change
in Control (as provided in Section 7
above). 

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During the lifetime of Optionee, the Option shall be exercisable only by Optionee (or Optionee's permitted transferee(s)) or his or their guardian or legal representative. 

        11.    Certain Representations and Warranties.    Optionee expressly acknowledges,
represents
and agrees as follows: 

        (a)  If
Optionee proposes to transfer all or any part of the Option or the Optioned Shares or uses Common Stock of the Company to pay the Option Price, Optionee has been
advised to consult with a competent tax advisor regarding the applicable tax consequences prior to making such transfer or utilizing such Common Stock to exercise the Option; 

        (b)  Optionee
has been advised to consult with a competent federal securities law advisor as to the reporting obligations and potential liability for profits under
Section 16 of the Exchange Act with respect to the granting, exercise and transfer of the Option; and 

        (c)  Optionee
hereby represents, warrants, acknowledges and covenants to the Company that Optionee is, and upon exercise of the Option will be, acquiring the Option and the
Optioned Shares for his own account, not as nominee or agent, for investment and not with a view to, or for resale in connection with, any distribution or public offering thereof within the meaning of
the Securities Act of 1933, as
amended (the "Securities Act"). Optionee does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to any third person with respect to the Option or any of the Optioned Shares. 

        12.    No Employment Rights or Obligations.    This Agreement does not confer upon
Optionee
any right to continue as an employee of the Company or one of its subsidiaries, nor does it limit in any way the right of the Company or a subsidiary to terminate Optionee's services to the Company or
the subsidiary at any time, with or without cause. Unless otherwise set forth in a written agreement binding upon the Company or the subsidiary, Optionee's employment by the Company or a subsidiary is
"at will." Any questions as to whether and when there has been a termination of Optionee's employment, the reason (if any) for such termination, and/or the consequences thereof under the terms of this
Agreement, shall be determined by the Board in its sole discretion, and the Board's determination thereof shall be final, binding and conclusive. 

        13.    Governing Law.    This Agreement shall be governed by, interpreted under, and
construed
and enforced in accordance with the internal laws, and not the laws pertaining to conflicts or choice or laws, of the State of California applicable to agreements made and to be performed wholly
within the State of California. 

        14.    Agreement Binding on Successors.    The terms of this Agreement shall be
binding upon
the executors, administrators, heirs, successors, transferees and assigns of Optionee. 

        15.    Necessary Acts.    Optionee agrees to perform all acts and execute and deliver
any
documents that may be reasonably necessary to carry out the provisions of this Agreement, including but not limited to all acts and documents related to compliance with federal and/or state securities
and/or tax laws. 

        16.    Restrictions Under Applicable Laws and Regulations.    

        (a)    Government Approvals.    If at any time the Company determines, in its discretion, that the listing,
registration or qualification of the Optioned Shares upon any securities exchange or interdealer quotation system or under any federal, state or foreign law, or the consent or approval of any
government or regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of this Option or the issuance of the Optioned Shares, this Option may not be exercised
as a whole or in part unless and until such listing, registration, qualification, consent or approval has been effected or obtained free of any conditions not acceptable to the Company. During the
term of this Option, the Company will use its reasonable efforts to seek to obtain from the appropriate governmental and regulatory agencies any requisite qualifications, consents, approvals or 

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authorizations in order to issue the Optioned Shares. The inability of the Company to obtain any such qualifications, consents, approvals or authorizations will relieve the Company of any liability
in respect of the nonissuance or sale of the Optioned Shares. 

        (b)    No Registration Obligation; Recipient Representations.    The Company will be under no obligation to register
or qualify the issuance of the Option or the Optioned Shares under the Securities Act or applicable state securities laws. Unless the issuance of the Optioned Shares has been registered under the
Securities Act, and qualified or registered under applicable state securities laws, the Company shall be under no obligation to issue the Optioned Shares unless they may be issued pursuant to
applicable exemptions from such registration or qualification requirements. In connection with any such exempt issuance, the Company may require Optionee to provide a written representation and
undertaking to the Company, satisfactory in form and scope to the Company, that the Optionee is acquiring the Optioned Shares for his own account as an investment and not with a view to, or for sale
in connection with, the distribution of the Optioned Shares, and that he will make no transfer of the same except in compliance with any rules and regulations in force at the time of such transfer
under the Securities Act, and other applicable law, and that if the Optioned Shares are issued without registration, a legend to this effect (together with any other legends deemed appropriate by the
Company) may be endorsed upon the Optioned Shares, and to the effect of any additional representations that are appropriate in light of applicable securities laws and rules. The Company may also order
its transfer agent to stop transfers of such shares. The Company may also require the Optionee to provide the Company such information and other documents as the Company may request in order to
satisfy the Company as to the investment sophistication and experience of the Optionee and as to any other conditions for compliance with any such exemptions from registration or qualification. 

        17.    Lock-Up Agreements.    The Optionee agrees as a condition to receipt of the
Option that, in connection with any public offering by the Company of its equity securities and upon the request of the Company and the principal underwriter (if any) in such public offering, any
Optioned Shares acquired or that may be acquired upon exercise or vesting of this Option may not be sold, offered for sale, encumbered, or otherwise disposed of or subjected to any transaction that
will involve any sales of securities of the Company, without the prior written consent of the Company or such underwriter, as the case may be, for a period of not more than 365 days after the
effective date of the registration statement for such public offering. The Optionee will, if requested by the Company or the principal underwriter, enter into a separate agreement to the effect of
this Section 17. 

        18.    Interpretation.    Headings herein are for convenience of reference only, do
not
constitute a part of the Agreement, and will not affect the meaning or interpretation of the Agreement. References herein to Sections are references to the referenced Section hereof, unless otherwise
specified. 

        19.    Severability.    Should any provision of this Agreement be held to be
unenforceable or
invalid for any reason, the remaining portions or provisions of this Agreement shall be unaffected by such holding. 

        20.    Counterparts.    This Agreement may be executed in two or more counterparts,
each of
which shall be deemed an original and all of which together shall be deemed one instrument. 

        IN
WITNESS WHEREOF, the Company and Optionee have executed this Agreement effective as of the Grant Date. 

	

FLEETWOOD ENTERPRISES, INC.,

a Delaware corporation	
 	

OPTIONEE
	

By:	
 	

/s/ Forrest D. Theobald
 Forrest D. Theobald

Sr. Vice President and General Counsel	
 	

/s/ Edward B. Caudill
 Edward B. Caudill

5

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Exhibit 10.5

FLEETWOOD ENTERPRISES, INC. EDWARD B. CAUDILL STOCK OPTION PLAN AND AGREEMENT

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