Document:

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                                                                   Exhibit 10.21

                           CHAMPION ENTERPRISES, INC.
             2000 STOCK COMPENSATION PLAN FOR NONEMPLOYEE DIRECTORS
              (AS AMENDED AND RESTATED EFFECTIVE DECEMBER 18, 2002)

                             I. GENERAL PROVISIONS

         1.1      ESTABLISHMENT. On February 29, 2000, the Board of Directors
("Board") of Champion Enterprises, Inc. ("Corporation") adopted the Champion
Enterprises, Inc. Stock Compensation Plan for Nonemployee Directors ("Plan"),
subject to the approval of shareholders at the Corporation's Annual Meeting on
May 2, 2000. The Plan subsequently was amended on November 4, 2000 and May 21,
2001 and is hereby amended and restated effective December 18, 2002. The Plan is
intended to replace the 1995 Stock Retainer Plan for Nonemployee Directors and
1991 Stock Plan for Directors.

         1.2      PURPOSE. The purpose of the Plan is to promote the best
interests of the Corporation and its shareholders by encouraging Directors of
the Corporation to acquire an ownership interest in the Corporation, thus
identifying their interests with those of shareholders.

         1.3      STOCK OWNERSHIP GUIDELINES. It is anticipated that each
Director will satisfy the stock ownership guidelines adopted from time to time
by the Corporation. Each Director is expected to own and retain 10,000 shares of
the Corporation's Common Stock by December 31, 2005 (or, for new Directors after
December 18, 2002, within three years after joining the Board). For purposes of
this paragraph, "ownership" shall include shares of Common Stock owned outright
by a Director, as well as vested and unvested Restricted Shares and vested and
unvested Common Stock deferred by a Director pursuant to a Deferred Stock Grant.

         1.4      DEFINITIONS. As used in this Plan, the following terms have
the meaning described below:

                  (a)      "BOARD" means the Board of Directors of the
Corporation.

                  (b)      "CASH RETAINER" means the cash component of a
Director's compensation for services on the Board, payable quarterly in arrears
to each Director who served for all or a portion of such quarter.

                  (c)      "CODE" means the Internal Revenue Code of 1986, as
amended.

                  (d)      "COMMON STOCK" means shares of the Corporation's
authorized common stock.

                  (e)      "CORPORATION" means Champion Enterprises, Inc., a
Michigan corporation.

                  (f)      "DEFERRED STOCK GRANT" means a Stock Retainer that a
Director has elected to defer until Retirement, death, or other termination of
services on the Board, whichever occurs first.

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                                                                   Exhibit 10.21

                  (g)      "DIRECTOR" means an individual who has been elected
or appointed to serve as a Director of the Corporation and is not an employee of
the Corporation or a Subsidiary.

                  (h)      "FAIR MARKET VALUE" means the New York Stock Exchange
closing price of the Corporation's Common Stock on the Grant Date, as reported
in The Wall Street Journal. In the event that there were no Common Stock
transactions on such date, the Fair Market Value shall be determined as of the
immediately preceding date on which there were Common Stock transactions.

                  (i)      "GRANT DATE" means the date of the applicable Annual
Meeting on which a Stock Retainer is granted, unless a Director is appointed, in
which case the Grant Date means the date of the Director's appointment to the
Board.

                  (j)      "PLAN" means the Champion Enterprises, Inc. 2000
Stock Compensation Plan for Nonemployee Directors (as amended and restated
effective December 18, 2002), the terms of which are set forth herein, and any
amendments thereto.

                  (k)      "RESTRICTED SHARES" means shares of Common Stock
granted pursuant to a Stock Retainer that are nontransferable until the
restrictions lapse.

                  (l)      "RETIREMENT" means retirement in accordance with the
Corporation's retirement policy for Directors.

                  (m)      "RULE 16B-3" means Rule 16b-3 of the Securities and
Exchange Commission (or any successor provision in effect at the applicable
time).

                  (n)      "STOCK ACCOUNT" means the bookkeeping account
established for each Director to record the Stock Retainer shares that a
Director has elected to defer pursuant to Sections 2.2 and 2.3. The Stock
Account shall be used solely for purposes of determining the number of shares to
be paid to a Director under the Plan and shall not constitute or be treated as a
trust fund of any kind.

                  (o)      "STOCK RETAINER" means the payment of Common Stock as
the annual equity retainer for service as a Director.

                  (p)      "SALE OR MERGER OF THE CORPORATION" means the
occurrence of any of the following events: (i) the acquisition of ownership by a
person, firm or corporation, or a group acting in concert, of more than fifty
percent of the outstanding Common Stock of the Corporation in a single
transaction or a series of related transactions within a one-year period; (ii) a
sale of all or substantially all of the assets of the Corporation to any person,
firm or corporation; or (iii) a merger or similar transaction between the
Corporation and another entity if shareholders of the Corporation do not own a
majority of the voting stock of the corporation surviving the transaction.

                  (q)      "SUBSIDIARY" means a corporation defined in Code
Section 424(f).

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                                                                   Exhibit 10.21

         1.5      ELIGIBILITY AND PARTICIPATION. All Directors as defined in
Section 1.4(g) are eligible to participate in the Plan and each such Director
shall participate as described in Articles II and III.

         1.6      STOCK.

                  (a)      Subject to the provisions of paragraph (c) of this
Section 1.6 and the provisions of Section 4.1, no more than 1,328,901 shares of
Common Stock may be issued pursuant to the Plan.

                  (b)      Authorized but unissued shares of Common Stock and
issued shares of Common Stock held by the Corporation or a Subsidiary, whether
acquired specifically for use under this Plan or otherwise, may be used for
purposes of the Plan.

                  (c)      Any shares of Common Stock granted hereunder that are
reacquired by the Corporation for any reason, shall no longer be charged against
the limitation provided for in paragraph (a) of this Section 1.6 and may again
be issued pursuant to the terms of the Plan, provided that no Director acquired
any benefits of ownership from such shares. For purposes of this paragraph,
"benefits of ownership" shall include the payment of a stock dividend, but shall
exclude voting rights.

                          II. TERMS OF STOCK RETAINERS

         2.1      STOCK RETAINERS. Stock Retainers shall be subject to the
following provisions:

                  (a)      Except as provided in paragraph (b) of this Section
2.1, effective on each Annual Meeting date through and including the Annual
Meeting date for the year 2005, each individual elected or reelected as a
Director at an Annual Meeting shall be paid a Stock Retainer consisting of 5,000
Restricted Shares of Common Stock for his or her services as a Director until
the next Annual Meeting of Shareholders. Any Director who is appointed to serve
as the chairperson of a Board committee during such year shall receive an
additional 750 shares of Common Stock (subject to the election in Section 2.2
below).

                  (b)      Any new Director who is appointed by the Board to
fill a vacancy on the Board or who becomes a committee chairperson prior to an
Annual Meeting shall receive a Stock Retainer consisting of a prorated number of
Restricted Shares for such interim term (subject to the election in Section 2.2
below).

                  (c)      The restrictions on the Restricted Shares granted
pursuant to a Stock Retainer shall lapse on 50% of the Restricted Shares upon a
Director's completion of six months of service on the Board following the Stock
Retainer Grant Date and shall lapse on 100% of the Restricted Shares upon a
Director's completion of one year of service on the Board following the Stock
Retainer Grant Date. A Director who terminates his or her service on the Board
prior to the lapse of such restrictions shall forfeit the Restricted Shares for
which the restrictions have not lapsed as of the date of his or her termination
of Board services. Restricted Shares may not be transferred, pledged, assigned
or otherwise alienated or hypothecated until the restrictions have lapsed. Prior
to the lapse of restrictions, a Director holding Restricted Shares granted
hereunder

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                                                                   Exhibit 10.21

may exercise full voting rights with respect to the Restricted Shares. Also
during the restriction period, a Director shall be entitled to receive all
dividends and other distributions paid with respect to the Restricted Shares. If
any dividends or distributions are paid in shares of Common Stock during the
restriction period, the dividend or other distribution shares shall be subject
to the same restrictions on transferability as the Restricted Shares with
respect to which they were paid.

                  (d)      Each certificate representing Restricted Shares shall
bear the following legend:

                  The sale or other transfer of the shares of stock represented
                  by this certificate, whether voluntary, involuntary or by
                  operation of law, is subject to certain restrictions on
                  transfer set forth in the Champion Enterprises, Inc. 2000
                  Stock Compensation Plan for Nonemployee Directors (as amended
                  and restated effective December 18, 2002) ("Plan"), rules and
                  administrative guidelines adopted pursuant to such Plan and
                  the Stock Retainer grant of Restricted Shares dated
                  __________, 200__. A copy of the Plan, and such rules and
                  administrative guidelines that pertain to the Stock Retainer
                  grant of Restricted Shares may be obtained from the General
                  Counsel of Champion Enterprises, Inc.

         2.2      STOCK RETAINER ELECTION. The normal form of equity payment
under the Plan for services as a Director is a Stock Retainer, paid in
Restricted Shares of the Corporation's Common Stock; provided; however, that
within 30 days following the date on which a Director is first elected or
appointed to the Board, the Director may submit an irrevocable written election
form requesting that his or her initial Stock Retainer be paid in the form of a
Deferred Stock Grant. For each subsequent year, each Director may submit an
election form prior to the end of the calendar year immediately preceding the
Annual Meeting to which the election relates. Pursuant to the election form,
each Director may elect to receive his or her Stock Retainer in the form of a
Deferred Stock Grant, to be paid in the form of shares of the Corporation's
Common Stock following the first to occur of the Director's Retirement, death or
termination of services on the Board.

         2.3      DEFERRED STOCK GRANT. A Director who elects to receive his or
her Stock Retainer in the form a Deferred Stock Grant shall have such Deferred
Stock Grant allocated to a bookkeeping account in the name of the Director
("Stock Account"), which shall be adjusted in accordance with Section 4.1 (a)
for certain corporate events, including stock splits, subdivisions, combinations
or reclassifications of Common Stock, and increased from time to time by
dividends on the hypothetical shares held in the Stock Account. For such
purposes, at the time cash or stock dividends are declared by the Corporation,
each Stock Account shall be increased by the number of shares that corresponds
to the cash or stock dividend amount that would have been payable on the number
of hypothetical shares held in the bookkeeping account had such shares been
outstanding at the time the dividend was declared. Stock Account shares shall be
subject to the same restrictions as are applicable to Restricted Shares granted
pursuant to a Stock Retainer. Restrictions on Stock Account shares shall lapse
on 50% of each Deferred Stock Grant upon a Director's completion of six months
of service on the Board following the Grant Date of the Deferred Stock Grant and
shall lapse on 100% of the Deferred Stock Grant upon a Director's

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                                                                   Exhibit 10.21

completion of one year of service on the Board following the Grant Date of the
Deferred Stock Grant. A Director who terminates his or her service on the Board
prior to the lapse of such restrictions shall forfeit the Deferred Stock Grant
shares for which the restrictions have not lapsed as of the date of his or her
termination of Board services. Deferred Stock Grant shares may not be
transferred, pledged, assigned or otherwise alienated or hypothecated until the
restrictions have lapsed.

         2.4      RETIREMENT, TERMINATION OF SERVICES OR DEATH. If a Director
terminates services on the Board for any reason other than a Sale or Merger of
the Corporation, the Director's Restricted Shares and Stock Account shares still
subject to restrictions shall automatically be forfeited by the Director and,
subject to Section 1.6, shall be available for new grants under the Plan as of
such termination date; provided, however, that the Committee, in its sole
discretion, may waive the restrictions remaining on any or all Restricted Shares
and Stock Account shares and add such new restrictions to Restricted Shares as
it deems appropriate.

                          III. TERMS OF CASH RETAINERS

         3.1      CASH RETAINERS. Effective January 1, 2003, Cash Retainers
shall be paid to Directors subject to the following provisions:

                  (a)      Except as provided in paragraph (b) of this Section
3.1, on each Annual Meeting date through and including the Annual Meeting Date
for the year 2005, each individual elected or reelected as a Director at an
Annual Meeting shall be entitled to a Cash Retainer of $30,000, paid quarterly
in arrears, for his or her services as a Director until the next Annual Meeting.
A Director also shall receive a $1,500 fee for personal attendance, or $750 for
telephonic attendance, at each Board meeting and shall in addition receive the
same compensation for a committee meeting, if the committee meeting is not the
same day as a Board meeting.

                  (b)      Any new Director who is appointed by the Board to
fill a vacancy on the Board prior to an Annual Meeting shall receive a prorated
Cash Retainer for such interim term.

                  (c)      A Director who serves as a committee chairperson
shall receive an additional annual Cash Retainer of $4,500, paid on the same
basis as the normal Cash Retainer.

                                IV. MISCELLANEOUS

         4.1      ADJUSTMENT PROVISIONS.

                  (a)      The total amount of Common Stock reserved under the
Plan shall be adjusted pro rata for any increase or decrease in the number of
outstanding shares of Common Stock resulting from payment of a stock dividend on
Common Stock, a stock split, subdivision or combination of shares of Common
Stock, or a reclassification of Common Stock.

                  (b)      In the event of a Sale or Merger of the Corporation,
any transfer restrictions still in effect shall automatically lapse.

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                                                                   Exhibit 10.21

                  (c)      The foregoing adjustments shall provide for the
elimination of any fractional share.

         4.2      PLAN EFFECTIVE DATE, TERMINATION AND AMENDMENT.

                  (a)      The Plan shall be effective upon approval of the
shareholders at the Corporation's Annual Meeting on May 2, 2000 and shall
continue up to and including the Annual Meeting in the year 2005. Cash Retainers
shall be added to the Plan effective January 1, 2003. No new Stock Retainers or
Cash Retainers shall be awarded under this Plan after the Annual Meeting in the
year 2005.

                  (b)      The Plan may be amended or terminated by the Board of
Directors at any time upon the recommendation of the Compensation and Human
Resources Committee; provided, however, that (i) no amendment shall become
effective without the approval of shareholders to the extent that such approval
is required under Rule 16b-3 (or its successor), as in effect at such time; and
(ii) neither the Stock Retainer amount, nor any other provision of the Plan that
affects the number of shares of Common Stock subject to a Stock Retainer, or the
frequency with which Stock Retainers are paid, may be amended or otherwise
modified more than once every six months, except as may be required to comply
with the Code or Rule 16b-3, as they may be amended from time to time.

         4.3      GENERAL PROVISIONS.

                  (a)      Nothing in this Plan or in any instrument executed
pursuant hereto shall confer upon any individual the right to continue to serve
as a Director of the Corporation.

                  (b)      No shares of Common Stock shall be issued under the
Plan unless and until all legal requirements applicable to the issuance of such
shares have, in the opinion of counsel to the Corporation, been complied with.
In connection with any such issuance, the person acquiring the shares shall, if
requested by the Corporation, give assurances, satisfactory to the Corporation,
in respect of such matters as the Corporation or a Subsidiary may deem desirable
to assure compliance with all applicable legal requirements.

                  (c)      Except as provided in Section 1.3 above, no person
(individually or as a member of a group), and no beneficiary or other person
claiming under or through him, shall have any right, title or interest in or to
any shares of Common Stock allocated or reserved for the purposes of this Plan,
except as to such shares of Common Stock, if any, as shall have been issued to
such person.

                  (d)      Nothing in this Plan is intended to preclude or limit
the establishment or continuation of, any other plan, practice or arrangement
for the payment of compensation or benefits to Directors that the Corporation
now has or may hereafter put into effect.

         4.4      UNFUNDED PLAN. Nothing contained herein shall be deemed to
create a trust of any kind or create any fiduciary relationship. This Plan shall
be unfunded. Deferred Stock Grants under Sections 2.2 and 2.3 shall continue for
all purposes to be part of the general funds of the Corporation until
Certificates are issued in accordance with Section 4.5, below. To the extent
that a Director or beneficiary acquires a right to receive payments from the
Corporation

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                                                                   Exhibit 10.21

under the Plan, such right shall not be greater than the right of any unsecured
general creditor of the Corporation, and such right shall be an unsecured claim
against the general assets of the Corporation. Although bookkeeping accounts may
be established with respect to individual Directors, any such accounts shall be
used merely as a bookkeeping convenience. The Corporation shall not be required
to segregate any assets that may at any time be represented by shares or rights
thereto, nor shall this Plan be construed as providing for such segregation, nor
shall the Corporation or the Board be deemed to be a trustee of any shares or
rights thereto to be granted under this Plan. Any liability or obligation of the
Corporation to any Director with respect to shares or rights thereto under this
Plan shall be based solely upon any contractual obligation that may be created
by this Plan, and no such liability or obligation of the Corporation shall be
deemed to be secured by any pledge or other encumbrance on any property of the
Corporation.

         4.5      TITLE TO SHARES. Title to shares remains with the Corporation
until Certificates are issued. Amounts credited to each Director's Stock Account
shall not be specifically set aside or otherwise segregated, but shall be
combined with corporate assets. Title to such shares shall remain with the
Corporation, and the Corporation's only obligation shall be to make timely
payments in accordance with the Plan.

         4.6      ASSIGNABILITY. No right to receive payment hereunder shall be
transferable or assignable by a Director except by will or the laws of descent
and distribution. All rights with respect to Restricted Shares granted to a
Director shall be exercisable during a Director's lifetime only by the Director
or the Director's Personal Representative.

         4.7      ADMINISTRATION. The Compensation and Human Resources Committee
shall interpret the Plan, prescribe, amend and rescind rules and regulations
relating to the Plan, and make all other determinations necessary or advisable
for its administration. The decision of the Compensation and Human Resources
Committee on any question concerning the interpretation of the Plan or its
administration shall be final and binding on all Directors.

         4.8      GOVERNING LAW. This Plan and all determinations made and
actions taken pursuant hereto, to the extent not otherwise governed by the
securities laws of the United States, shall be governed by and construed in
accordance with the laws of the State of Michigan.

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                                                                   Exhibit 10.21

         IN WITNESS WHEREOF, this Champion Enterprises, Inc. 2000 Stock
Compensation Plan for Nonemployee Directors (as amended and restated effective
December 18, 2002) has been executed on behalf of the Corporation on this the
15th day of February, 2003.

                                    CHAMPION ENTERPRISES, INC.

                                    By: /s/ WALTER R. YOUNG
                                        ----------------------------------------
                                        Walter R. Young
                                        Chairman of the Board of Directors,
                                        President and Chief Executive Officer

BOARD APPROVAL OF RESTATEMENT: 12/18/02

                                       8<PAGE>

                                                                   Exhibit 10.25

                                October 17, 2002

Phyllis Knight
2610 Maple Ridge Lane
Orono, MN  55331

Dear Phyllis:

         The purpose of this letter is to give the general guidelines of an
offer to join Champion Enterprises and the major terms of employment.

1.       The position is Executive Vice President and Chief Financial Officer of
         Champion Enterprises, Inc., based in Auburn Hills, MI. You will report
         directly to me. Within 6 months, we will add the responsibility of
         HomePride Finance.

2.       The base salary is $320,000 annually, paid monthly. After 2 consecutive
         profitable quarters, your base will be increased to $350,000 annually.

3.       You will receive $100,000 cash your first day of employment, to be
         refunded in whole if you resign (for reason other than death or
         disability) within 18 months.

4.       In lieu of a "2002 Bonus" that would be paid in March 2003, you will
         receive a $100,000 cash one time payment on April 1, 2003.

5.       The 2003 annual incentive program is yet to be determined, but will
         have a range of up to 180% of base salary. This bonus will be paid in
         March 2004.

6.       The equity program will be formalized in a separate non-qualified stock
         option agreement to cover a total of 600,000 shares of Champion
         Enterprises stock vesting over the next four years. The general terms
         of the equity program will be as follows:

         a)       120,000 shares at 40% of market price on date of grant to be
                  purchased within 60 days of employment. These shares will vest
                  at a rate of 25% each six months. If you leave the company
                  during the two year period you will lose the prorated gain

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                                                                   Exhibit 10.25

                  amount remaining. You will have tax consequences of the
                  difference between purchase and market price. Once you
                  exercise this portion, you will be eligible for the following:

         b)       480,000 shares at market price on date of grant to be vested
                  over four years at 120,000 shares vested on each anniversary
                  for the four years. The term of this grant is six years from
                  date of grant.

         As a part of this option agreement, there will be a change of control
         provision (similar to Cleberg, Collins and Surles) that immediately
         vests the outstanding, unvested options, as well as requiring
         confidentiality and non-compete provisions.

7.       You will be eligible for the company's normal medical, dental, life
         insurance and long term disability benefits at the first of the month
         following your start date with the letters you provided, we have
         covered all "preconditions" issues. In case of your death, Champion's
         obligation under this agreement will terminate but any amount owed you
         under this agreement or bonus plan plus all vested options at time of
         your death will be paid to your estate. There is no defined benefits
         retirement program, but we do have a 401(k) tax deferred savings
         program. We have a deferred income program for base compensation and
         annual bonuses. You will be entitled to four weeks vacation per year.
         We do not pay cash in lieu of vacations.

8.       In order to expedite and assist your family's move from Minnesota to
         Michigan we will:

         -        Pay for all selling expenses for your Minnesota home.

         -        Pay for all closing costs for purchasing your home in
                  Michigan.

         -        Pay for physical moving of all household goods and incidentals
                  from Minnesota to Michigan.

         -        Pay for temporary housing and transportation expenses during
                  the commuting period. (To be finalized on or before August 1,
                  2003)

         -        Provide a one time gross up on the tax impact of moving
                  expenses.

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                                                                   Exhibit 10.25

9.       You will be an "at will" employee which means your employment may be
         terminated at any time, by you or Champion, for any reason, with or
         without cause and without any further obligation.

10.      If the company separates you for any reason (other than gross
         malfeasance or legal reasons), the company will provide 18 months of
         base salary, bonus and benefits. This severance clause may trigger at
         your option, if your title, compensation and/or responsibilities are
         reduced.

         This offer is based on your commencing employment today.

         If the terms are acceptable, please sign below and return one copy to
me. Phyllis, I look forward to you joining the Champion team.

                                    Very truly yours,

                                    /s/ WALTER R. YOUNG
                                    --------------------------------------------
                                    Walter R. Young
/s/ Phyllis Knight
------------------------------------------------
         Phyllis Knight

                             10/17/02
                  ------------------------------
                              Dated

cc:      Bob Anestis

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