Document:

exv10w1

Exhibit 10.1

Execution Copy

THIRD AMENDMENT

TO DEBTOR-IN-POSSESSION CREDIT AGREEMENT AND

NINTH AMENDMENT TO THE PREPETITION CREDIT AGREEMENT

     THIS THIRD AMENDMENT TO DEBTOR-IN-POSSESSION CREDIT AGREEMENT AND NINTH AMENDMENT TO THE
PREPETITION CREDIT AGREEMENT, dated as of January 22, 2010 (this “Amendment”), to the
Existing Credit Agreement (as defined below) and the Prepetition Credit Agreement (as defined in
the Existing Credit Agreement) respectively, is entered into among CHAMPION HOME BUILDERS CO., a
Michigan corporation (the “Borrower”), CHAMPION ENTERPRISES, INC., a Michigan corporation
(the “Parent”), certain of the Lenders (such capitalized term and other capitalized terms
used in this preamble and the recitals below to have the meanings set forth in, or are defined by
reference in Article I below), CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as the
Administrative Agent (in such capacity, the “Administrative Agent”), and each Obligor
signatory hereto.

W I T N E S S E T H:

     WHEREAS, the Borrower, the Parent, the Lenders and Credit Suisse AG, Cayman Islands Branch, as
the Administrative Agent, are all parties to the Debtor-in-Possession Credit Agreement, dated as of
November 15, 2009 (as amended or otherwise modified prior to the date hereof, the “Existing
Credit Agreement”, and as amended by this Amendment and as the same may be further amended,
supplemented, amended and restated or otherwise modified from time to time, the “DIP Credit
Agreement”);

     WHEREAS, the Lenders under the DIP Credit Agreement are also “Lenders” under, and as defined
in, the Prepetition Credit Agreement;

     WHEREAS, the Debtors (all capitalized terms being used herein as defined in Article I
below), the other Obligors, the Administrative Agent and the Lenders desire to amend certain
provisions of the Existing Credit Agreement and the Prepetition Credit Agreement and are willing,
on the terms and subject to the conditions hereinafter set forth, to modify the Existing Credit
Agreement and the Prepetition Credit Agreement as set forth below.

     NOW, THEREFORE, the parties hereto hereby covenant and agree as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1. Certain Definitions. The following terms when used in this
Amendment shall have the following meanings (such meanings to be equally applicable to the
singular and plural forms thereof):

     “Administrative Agent” is defined in the preamble.

     “Amendment” is defined in the preamble.

     “Authorized Actions” is defined in Article VII.

 

 

     “Borrower” is defined in the preamble.

     “DIP Credit Agreement” is defined in the first recital.

     “Existing Credit Agreement” is defined in the first recital.

     “Third Amendment Effective Date” is defined in Article IV.

     “Parent” is defined in the preamble.

     SECTION 1.2. Other Definitions. Terms for which meanings are provided in the
Existing Credit Agreement are, unless otherwise defined herein or the context otherwise
requires, used in this Amendment with such meanings.

ARTICLE II

AMENDMENTS TO EXISTING CREDIT AGREEMENT

     Effective on (and subject to the occurrence of) the Third Amendment Effective Date, the
provisions of the Existing Credit Agreement referred to below are hereby amended in accordance with
this Article II. Except as expressly so amended, the Existing Credit Agreement shall
continue in full force and effect in accordance with its terms.

     SECTION 2.1. Amendments to Section 1.1. Section 1.1 of the Existing
Credit Agreement is hereby amended by inserting the following definitions in the appropriate
alphabetical order:

     “‘Alternative Transaction’ is defined in the definition of
“Alternative Transaction Fee.”

     ‘Acquisition’ is defined in the definition of “Purchaser.”

     ‘Alternative Transaction Fee’ means a break-up fee of
$3,000,000 payable to the New Equity Investors or their designees in the
event of consummation of a topping bid in the 363 auction or consummation of
an alternative plan of reorganization (other than following consummation of
the Acquisition described herein) (an “Alternative Transaction”),
which Alternative Transaction Fee shall be paid solely from the proceeds of
a topping bid in the 363 auction or as an administrative expense in the
context of an alternative plan of reorganization. The Alternative
Transaction Fee shall be subject to reduction such that Reimbursable
Expenses and the Alternative Transaction Fee do not, in the aggregate,
exceed $4,000,000.

     ‘Asset Purchase Agreement’ means such agreement entered into to
effectuate the Acquisition.

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     ‘DIP Modification Order’ means the order of the Bankruptcy
Court approving the Third Amendment.

     ‘Expenses Claim’ is defined in Section 8.21.

     ‘New Equity Investors’ means certain of the proponents of a
joint credit bid to acquire substantially all of the assets of the Debtors
comprising Centerbridge Capital Partners, L.P., MAK Capital Fund LP, Sankaty
Credit Opportunities II, L.P., Sankaty Credit Opportunities III, L.P.,
Sankaty Credit Opportunities IV, L.P., and Sankaty Credit Opportunities IV
(Offshore Master), L.P.

     ‘Purchaser’ means a new entity to be formed in order to
consummate the acquisition of substantially all of the assets and business
operations of Champion Enterprises, Inc., a Michigan corporation, and each
of its subsidiaries and affiliates that are debtors and
debtors-in-possession in In re Champion Enterprises, Inc., et al,
Case No. 09-14019 (Bankr. D. Del. 2009) (the “Acquisition”).

     ‘Reimbursable Expenses’ means any and all out-of-pocket fees
and expenses incurred by the Purchaser and New Equity Investors (including
the reasonable fees and disbursements of Latham & Watkins LLP up to a
maximum amount of $75,000) in connection with the Acquisition and the
transactions contemplated by the Asset Purchase Agreement in an amount not
to exceed, when taken together with the Alternative Transaction Fee, $4
million.

     ‘Required DIP Lenders’ means Lenders holding not less than
sixty percent (60%) of the Obligations after taking into account any
pass-through of voting pursuant to participation arrangements,
provided that such Lenders include at least two holders of
Obligations that are not affiliates of each other or of any of the New
Equity Investors.

     ‘Third Amendment’ means the Third Amendment to
Debtor-in-Possession Credit Agreement and Ninth Amendment to the Prepetition
Credit Agreement, dated as of January 22, 2010, to this Agreement and the
Prepetition Credit Agreement, respectively, among the Obligors, the Lenders
party thereto and the Administrative Agent.

     ‘Third Amendment Effective Date’ means the Third Amendment
Effective Date as that term is defined in Article IV of the Third
Amendment.”

     SECTION 2.2. Amendment to Article IV.

     SECTION 2.2.1. Clause (ii) of Section 4.14 of the Existing Credit
Agreement is hereby amended by inserting the following at the end of such

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Section: “other than to the extent, if any, such Superiority Claim may be
affected by the granting of an Expenses Claim.”

     SECTION 2.3. Amendment to Article VI.

     SECTION 2.3.1. Section 6.27(c) of the Existing Credit Agreement is
hereby amended by deleting the period at the end of such Section and replacing
it with the following: “and, except for claims and obligations payable to an
Agent in accordance with the Loan Documents, any Expenses Claim.”

     SECTION 2.4. Amendment to Article VII.

     SECTION 2.4.1. Section 7.18(a)(ii) of the Existing Credit
Agreement is hereby amended by deleting the words “January 28, 2010” appearing
therein and inserting in their place the words “February 8, 2010.”

     SECTION 2.5. Amendment to Article VIII.

     SECTION 2.5.1. Clause (a) of Section 8.21 of the Existing Credit
Agreement is hereby amended by deleting the words “Carve-Out and the Third Party
Liens,” appearing therein and inserting in their place the words “Carve-Out, the
Third Party Liens and, subject and subordinate to the Carve-Out and claims,
indemnification, expenses or other obligations payable to an Agent or the DIP
Letter of Credit Issuer in accordance with the Loan Documents, any claim in
connection with payment or reimbursement of any Reimbursable Expenses to the New
Equity Investors or the Purchaser, to the extent payable in accordance with
Section 12.3 hereof (an “Expenses Claim”).

     SECTION 2.6. Amendments to Article IX.

     SECTION 2.6.1. Section 9.1.13 of the Existing Credit Agreement is
hereby amended by deleting the period at the end of such Section and replacing
it with the following: “, other than the DIP Modification Order.”

     SECTION 2.6.2. Section 9.1.14 of the Existing Credit Agreement is
hereby amended by deleting the period at the end of such Section and replacing
it with the following: “, other than the DIP Modification Order.”

     SECTION 2.7. Amendment to Article X.

     SECTION 2.7.1. Section 10.1 of the Existing Credit Agreement is
hereby amended by adding the following sentences at the end thereof:

“Each Lender hereby agrees that in no event shall any Agent be
liable or responsible for any special, consequential, punitive,
incidental, exemplary or other similar damages or claims arising
in any way out of the Loan Documents, the transactions

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contemplated thereby (including, without limitation, the matters
described in and contemplated by the third sentence of this
Section) or any action taken or not taken in connection
therewith. As used in the fifth, sixth, seventh and eighth
sentences of this Section, the term “Agent” shall mean and be
deemed to be a collective reference to each “Agent, the DIP
Letter of Credit Issuer, and each of their respective present or
former subsidiaries, affiliates, advisors, employees, attorneys,
agents, officers, directors and representatives and their
respective predecessors, successors, transferees and assigns.”

     SECTION 2.8. Amendment to Article XII.

     SECTION 2.8.1. Section 12.3 of the Existing Credit Agreement is
hereby amended by adding the following paragraph as the penultimate paragraph
thereof:

     “The Borrower further agrees to pay, on a super-priority
basis prior in right of payment to the payment of Obligations,
but subject and subordinate to the Carve-Out and claims,
indemnification, expenses or other obligations payable to an
Agent or the DIP Letter of Credit Issuer in accordance with the
Loan Documents, all fees and expenses in connection with an
Expenses Claim upon the occurrence of (i) a termination event
under the Asset Purchase Agreement caused by (a) failure of the
Bankruptcy Court to enter the Sale Order on or before March 3,
2010, in form and substance acceptable to the New Equity
Investors in their sole discretion, (b) failure of the Purchaser
and Debtors to close the Acquisition on or before March 18, 2010
(or a later date approved by the Debtors, the Required DIP
Lenders and all of the New Equity Investors), (c) failure of the
Debtors to assume or assign, all contracts designated to be, in
accordance with the procedures and terms to be agreed by the
parties in the Asset Purchase Agreement, (d) a Material Adverse
Change having occurred since the Reference Date (each as defined
in the Asset Purchase Agreement) or (e) failure of the Bankruptcy
Court to enter the DIP Modification Order, the payment of such
fees and expenses in connection with subsections (a), (b), (c)
and (e) conditioned upon the Purchaser having used commercially
reasonable efforts to endeavor that the requirements of such
subsections are satisfied, or (ii) consummation of an Alternative
Transaction.”

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ARTICLE III

AMENDMENTS TO PREPETITION CREDIT AGREEMENT

     Effective on (and subject to the occurrence of) the Third Amendment Effective Date, the
provisions of the Prepetition Credit Agreement referred to below are hereby amended in accordance
with this Article III. Except as expressly so amended, the Prepetition Credit Agreement shall
continue in full force and effect in accordance with its terms.

     SECTION 3.1. Amendment to Article X.

     SECTION 3.1.1. Section 10.1 of the Prepetition Credit Agreement is
hereby amended by adding the following sentences at the end thereof:

     “Each Lender hereby agrees that in no event shall the
Administrative Agent be liable or responsible for any special,
consequential, punitive, incidental, exemplary or other similar
damages or claims arising in any way out of the Loan Documents,
the transactions contemplated thereby (including, without
limitation, the matters described in and contemplated by Article
III of the Eighth Amendment) or any action taken or not taken in
connection therewith. As used in the seventh, eighth, ninth and
tenth sentences of this Section, the term “Administrative Agent”
shall mean and be deemed to be a collective reference to each of
the “Administrative Agent, Synthetic Letter of Credit Issuer and
Revolving Letter of Credit Issuer, and each of their respective
present or former subsidiaries, affiliates, advisors, employees,
attorneys, agents, officers, directors and representatives and
their respective predecessors, successors, transferees and
assigns.”

ARTICLE IV

CONDITIONS TO EFFECTIVENESS

     This Amendment shall become effective upon the prior or simultaneous satisfaction of each of
the following conditions in a manner reasonably satisfactory to the Administrative Agent (the date
when all such conditions are so satisfied being the “Third Amendment Effective Date”):

     SECTION 4.1. Counterparts. The Administrative Agent shall have received
counterparts hereof executed on behalf of the Borrower, each other Obligor, the Required
Lenders and the Administrative Agent.

     SECTION 4.2. Certificate of Authorized Officer. The Borrower shall have
delivered a certificate of an Authorized Officer, solely in his or her capacity as an
Authorized Officer of the Borrower and not in his or her individual capacity, certifying
that, both immediately before and after giving effect to this Amendment on the Third

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Amendment Effective Date, the statements set forth in Article II and
Article III hereof are true and correct.

     SECTION 4.3. Satisfactory Legal Form. The Administrative Agent and its
counsel shall have received all information, and such counterpart originals or such
certified or other copies of such materials, as the Administrative Agent or its counsel may
reasonably request, and all legal matters incident to the effectiveness of this Amendment
shall be satisfactory to the Administrative Agent and its counsel. All documents executed
or submitted pursuant hereto or in connection herewith shall be reasonably satisfactory in
form and substance to the Administrative Agent and its counsel.

     SECTION 4.4. Costs and Expenses, etc. The Administrative Agent shall have
received all fees, costs and expenses due and payable pursuant to Section 12.3 of
the Existing Credit Agreement (including without limitation the fees and expenses of Willkie
Farr & Gallagher LLP, special counsel to the Administrative Agent), if then invoiced and to
the extent such payment is in compliance with the applicable provisions of the Final Order.

     SECTION 4.5. Entry of Bidding Procedures Order and DIP Modification Order. In
the case of Sections 2.2, 2.3, 2.5, 2.6 and 2.8
hereof, the Bidding Procedures Order and DIP Modification Order, each in form and substance
reasonably satisfactory to the Debtors, Required DIP Lenders, all of the New Equity
Investors and Administrative Agent, shall have been entered by the Bankruptcy Court.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

     To induce the Lenders to enter into this Amendment, the Borrower and each other Obligor
represent and warrant to the Lenders as set forth below.

     SECTION 5.1. Validity, etc. This Amendment and the DIP Credit Agreement
(after giving effect to this Amendment) each constitutes the legal, valid and binding
obligation of the Borrower and such applicable Obligors enforceable in accordance with its
terms subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting creditors’ rights
generally, general equitable principles (whether considered in a proceeding in equity or at
law) and an implied covenant of good faith and fair dealing.

     SECTION 5.2. Representations and Warranties, etc. Both before and after
giving effect to this Amendment, the statements set forth in clause (a) of Section
5.2.1, and after giving effect to this Amendment, the statements set forth in clause (b)
of Section 5.2.1, in each case of the Existing Credit Agreement, are true and
correct.

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ARTICLE VI

CONFIRMATIONS AND COVENANTS

     SECTION 6.1. Guarantees, Security Interest, Continued Effectiveness. Each
Obligor hereby reaffirms, as of the Third Amendment Effective Date, that immediately after
giving effect to this Amendment (a) the covenants and agreements made by such Obligor
contained in each Loan Document to which it is a party, (b) with respect to each Obligor
party to a Guaranty, its guarantee of payment of the Obligations pursuant to such Guaranty
and (c) with respect to each Obligor party to the Pledge and Security Agreement or a
Mortgage, its pledges and other grants of Liens in respect of the Obligations pursuant to
any such Loan Document, in each case, as such covenants, agreements and other provisions may
be modified by this Amendment.

     SECTION 6.2. Validity, etc. Each Obligor (other than the Borrower) hereby
represents and warrants, as of the Third Amendment Effective Date, that immediately after
giving effect to the Amendment, each Loan Document, in each case as modified by this
Amendment (where applicable and whether directly or indirectly), to which it is a party
continues to be a legal, valid and binding obligation of such Obligor, enforceable against
such party in accordance with its terms subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors’ rights generally, general equitable principles (whether considered in a
proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

     SECTION 6.3. Representations and Warranties, etc. Each Obligor (other than the
Borrower) hereby represents and warrants, as of the Third Amendment Effective Date, that
before and after giving effect to this Amendment, the representations and warranties set
forth in each Loan Document to which such Obligor is a party are, in each case, true and
correct (a) in the case of representations and warranties not qualified by references to
“materiality” or a Material Adverse Effect, in all material respects and (b) otherwise, in
all respects, in each case with the same effect as if then made (unless stated to relate
solely to an earlier date, in which case such representations and warranties shall be true
and correct in all material respects as of such earlier date).

ARTICLE VII

MISCELLANEOUS

     SECTION 7.1. Cross-References. References in this Amendment to any Article or
Section are, unless otherwise specified, to such Article or Section of this Amendment.

     SECTION 7.2. Loan Document Pursuant to Existing Credit Agreement. This
Amendment is a Loan Document executed pursuant to the Existing Credit Agreement and shall
(unless otherwise expressly indicated therein) be construed, administered and

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applied in accordance with all of the terms and provisions of the Existing Credit
Agreement, as amended and modified hereby, including Articles X and XII
thereof.

     SECTION 7.3. Successors and Assigns. This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns.

     SECTION 7.4. Counterparts. This Amendment may be executed by the parties
hereto in several counterparts, each of which when executed and delivered shall be an
original and all of which shall constitute together but one and the same agreement.
Delivery of an executed counterpart of a signature page to this Amendment by facsimile (or
other electronic transmission) shall be effective as delivery of a manually executed
counterpart of this Amendment.

     SECTION 7.5. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK IN THE SAME MANNER AS
PROVIDED FOR IN THE DIP CREDIT AGREEMENT.

     SECTION 7.6. Full Force and Effect; Limited Amendment. Except as expressly
amended hereby, all of the representations, warranties, terms, covenants, conditions and
other provisions of the Existing Credit Agreement and the Loan Documents shall remain
unchanged and shall continue to be, and shall remain, in full force and effect in accordance
with their respective terms. The amendment and modifications s set forth herein shall be
limited precisely as provided for herein to the provisions expressly amended or modified
herein and shall not be deemed to be an amendment to, waiver of, consent to or modification
of any other term or provision of the Existing Credit Agreement or any other Loan Document
or of any transaction or further or future action on the part of any Obligor which would
require the consent of any Lenders, the Administrative Agent, or the DIP Letter of Credit
Issuer under the Existing Credit Agreement or any of the Loan Documents.

     SECTION 7.7. No Waiver. This Amendment is not, and shall not be deemed to be,
a waiver or a consent to any Event of Default, event with which the giving of notice or
lapse of time or both may result in an Event of Default, or other non-compliance now
existing or hereafter arising under the DIP Credit Agreement and the other Loan Documents,
except as expressly provided for in Article II hereof.

     SECTION 7.8. Obligor Releases/Damages and Liability Limitations. Although each
Lender and the Administrative Agent each regards its conduct as proper and does not believe
that any Obligor has any claim, right, cause of action, offset or defense against such
Lender, the Administrative Agent, the DIP Letter of Credit Issuer or any other Lender Party
(for purposes of this paragraph, defined as, “each Lender, the Administrative Agent, DIP
Letter of Credit Issuer and each of their present or former subsidiaries, affiliates,
advisors, employees, attorneys, agents, officers, directors and representatives and their
respective predecessors, successors, transferees and assigns”) in connection with the
execution, delivery, performance and ongoing administration of, or

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the transactions contemplated by, the DIP Credit Agreement and the other Loan
Documents, each Lender, the Administrative Agent and each Obligor agree to eliminate any
possibility that any past conduct, conditions, acts, omissions, events, circumstances or
matters of any kind whatsoever could impair or otherwise affect any rights, interests,
contracts or remedies of the Lenders, the Administrative Agent or any other Lender Party.
Therefore, each Obligor, on behalf of itself and its employees, agents, officers, directors,
representatives, predecessors, successors, transferees and assigns, unconditionally, freely,
voluntarily and, after consultation with counsel and becoming fully and adequately informed
as to the relevant facts, circumstances and consequences, knowingly releases, waives and
forever discharges (and further agrees not to allege, claim or pursue) (a) any and all
liabilities, indebtedness and obligations, whether known or unknown, of any kind whatsoever
of any Lender Party to any Obligor, except for any obligations remaining to be respectively
performed by the Lenders as expressly set forth in this Amendment, the DIP Credit Agreement
and the other Loan Documents, (b) any legal, equitable or other obligations of any kind
whatsoever, whether known or unknown, of any Lender Party to any Obligor (and any rights of
any Obligor against any Lender Party) other than any such obligations expressly set forth in
this Amendment, the DIP Credit Agreement and the other Loan Documents, (c) any and all
claims, whether known or unknown, under any oral or implied agreement with (or obligation or
undertaking of any kind whatsoever of) any Lender Party which is different from or in
addition to the express terms of this Amendment, the DIP Credit Agreement and the other Loan
Documents and (d) all other claims, rights, causes of action, counterclaims or defenses of
any kind whatsoever, in contract or in tort, in law or in equity, whether known or unknown,
direct or derivative, which such Obligor or any predecessor, successor or assign might
otherwise have or may have against any Lender Party on account of any conduct, condition,
act, omission, event, contract, liability, obligation, demand, covenant, promise,
indebtedness, claim, right, cause of action, suit, damage, defense, circumstance or matter
of any kind whatsoever which existed, arose or occurred at any time prior to the Third
Amendment Effective Date. The Obligors further understand and agree that none of the
Lenders, the Administrative Agent, DIP Letter of Credit Issuer or any other Lender Party
shall at any time, whether heretofore, on or as of the Third Amendment Effective Date or
thereafter, be liable or responsible for any special, consequential, punitive, incidental,
exemplary or other similar damages or claims arising in any way out of the Loan Documents,
the transactions contemplated thereby or any action taken or not taken in connection
therewith. Each Lender Party hereby further agrees that the Administrative Agent shall not
have any liability or responsibility whatsoever, and shall be fully protected and exculpated
from and against, any action taken or not taken by it at the direction of, or authorized by,
the Required Lenders, including any such action authorized hereunder, or any action taken in
connection therewith (“Authorized Actions”). Section 10.3 of the DIP Credit
Agreement shall apply to this Amendment and all Authorized Actions, except that it is
understood and agreed that all Authorized Actions shall be deemed not to constitute gross
negligence or willful misconduct.

     SECTION 7.9. Approval of DIP Budget. Pursuant to Section 7.17 of the
Existing Credit Agreement, the Required Lenders hereby approve and consent to the updated
DIP Budget, dated January 2010, a summary of which is attached hereto as Exhibit A.

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     SECTION 7.10. Parties Acting in Dual Capacities. The Borrower, the
Administrative Agent, each Lender, each Obligor and each other party hereto agrees and
acknowledges that it has consented to, executed and delivered the foregoing Amendment in its
capacity as such under both the DIP Credit Agreement and the Prepetition Credit Agreement.

[signature pages follow]

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     IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the
date first above written.

	 	 	 	 	 
	 	CHAMPION HOME BUILDERS CO.

CHAMPION ENTERPRISES, INC.

CHAMPION ENTERPRISES MANAGEMENT CO.

CHAMPION RETAIL, INC.

HIGHLAND ACQUISITION CORP.

HIGHLAND MANUFACTURING COMPANY LLC

HOMES OF MERIT, INC.

NEW ERA BUILDING SYSTEMS, INC.

NORTH AMERICAN HOUSING CORP.

REDMAN HOMES, INC.

SAN JOSE ADVANTAGE HOMES, INC.

STAR FLEET, INC.

WESTERN HOMES CORPORATION

 	 
	 	By  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Signature Pages to Third Amendment to DIP Credit Agreement

and Ninth Amendment to Prepetition Credit Agreement

 

 

	 	 	 	 	 
	 	CREDIT SUISSE AG, CAYMAN ISLANDS 

BRANCH,
as
Administrative Agent and Lender

 	 
	 	By  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	 	 
	 	By  	
 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Signature Pages to Third Amendment to DIP Credit Agreement

and Ninth Amendment to Prepetition Credit Agreement

 

 

	 	 	 	 	 
	 	[INSERT NAME OF LENDER]

 	 
	 	By  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Signature Pages to Third Amendment to DIP Credit Agreement

and Ninth Amendment to Prepetition Credit Agreement

 

EXHIBIT A

DIP BUDGET SUMMARYexv10w124

Exhibit 10.124

PERFORMANCE UNIT AWARD AGREEMENT

			
	TO:	 	[Recipient Name] (Employee Number: nnnnn)

     THIS AGREEMENT (the “Agreement”) is made effective as of December 7, 2009 (the “Grant Date”),
between Compuware Corporation, a Michigan corporation (the “Corporation”), and the individual whose
name is set forth above, who is an employee of the Corporation (the “Recipient”). Capitalized
terms not otherwise defined herein shall have the same meanings as in the 2007 Long Term Incentive
Plan (the “Plan”), and the terms of the Plan are hereby incorporated by reference and made a part
of this Agreement. This Award is granted pursuant to Article VII of the Plan and is intended to be
exempt from Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”).

     In consideration of the mutual covenants set forth in this Agreement and other good and
valuable consideration, receipt of which is acknowledged, the parties agree as follows:

     1. Grant of the Performance Units. Subject to the terms and conditions of the Plan
and this Agreement, the Corporation grants to the Recipient [# shares] Performance Units
(hereinafter called the “Units”). The Units shall vest and become non-forfeitable in accordance
with Section 2 below. In the event of any conflict between the Plan and this Agreement, the terms
of the Plan shall control. The grant of Units made under this Agreement is referred to as the
“Units Award”.

     2. Vesting and Forfeiture.

          (a) As long as the Recipient continues to be employed by the Corporation, the Units shall
become vested and non-forfeitable if Covisint Corporation has recognized total organic revenue on a
US GAAP basis exceeding $150 million for any four consecutive completed calendar quarters prior to
August 26, 2015. Notwithstanding the foregoing, the entire Units Award shall become immediately
vested and non-forfeitable in the event that the Recipient ceases to be employed by the Corporation
due to Recipient’s death or Disability or upon a Change in Control of the Corporation, as defined
in the Plan.

          (b) To the extent not previously vested, the Units will be cancelled on the earlier of (i) the
date on which a change in control of Covisint Corporation occurs or (ii) on August 26, 2015 if the
criteria for vesting stipulated in 2(a) above are not met. A “change of control of Covisint
Corporation” means the closing or effectiveness of an acquisition of Covisint Corporation by a
third party, regardless of the form of the acquisition, provided, however, that an Initial Public
Offering of Covisint Corporation or an acquisition of the Corporation shall not constitute a
“change of control of Covisint Corporation” for purposes of this Agreement.

          (c) If Recipient’s employment with the Corporation terminates for any reason other than
Recipient’s death or Disability, Recipient’s right to shares of Common Stock subject to Units that
are not yet vested automatically shall terminate and be forfeited by Recipient unless the
Committee, in the exercise of its authority under the Plan, modifies this Section 2 in connection
with such termination to provide otherwise.

          (d) The Committee, at its discretion and in the exercise of its authority under Code Section
162(m) and the Plan, reserves the right to reduce or eliminate the Recipient’s right to shares of
Common Stock subject to Units at any time on or before the attainment of the criteria for
vesting stipulated in 2(a) above.

     3. Settlement. No shares of Common Stock will be issued before the Units vest in
accordance with Section 2 above. As soon as practicable, but no later than thirty (30) days, after
the date on which the Units vest, the Corporation will issue to Recipient or Recipient’s legal

					
					
					
					
					
					
					
					
					
					
					
	[Recipient Name] — December 7, 2009
	 	1 of 3
	 	PU Covisint Revenue 162m

 

 

Exhibit 10.124

guardian or representative (if applicable) one share of Common Stock for each vested Unit. The
issuance of shares of Common Stock may be in certificated form or in book entry form, in the
Corporation’s sole discretion, in either case without restrictive legend or notation (except to the
extent necessary or appropriate under applicable securities laws). The Units shall not be settled
in cash.

     4. Dividend Equivalents; Rights as a Shareholder.

          (a) Each Unit awarded under this Agreement shall have a Dividend Equivalent (in accordance
with Section 4.6 of the Plan) associated with it with respect to cash dividends on Common Stock
that have a record date after the Grant Date and prior to the date on which the Units are settled
for shares of Common Stock. Such Dividend Equivalents, if any, shall be paid by crediting the
Recipient with additional whole Units as of the date of payment of such cash dividends on Common
Stock. The number of additional Units (rounded down to the nearest whole number) to be so credited
shall be determined by dividing (i) the amount of cash dividends that would have been paid on the
dividend payment date with respect to the number of shares of Common Stock underlying the unsettled
Units previously credited to the Recipient as of the dividend record date (including those Units
received as part of the Units Award and as a result of prior cash dividends) if such shares had
been outstanding on the dividend record date, by (ii) the Fair Market Value per share of Common
Stock on the dividend payment date. Such Units shall be subject to the same terms and conditions
and shall be settled in the same manner and at the same time as provided in Section 3 of this
Agreement.

          (b) Except as set forth in Section 4(a) above, Recipient shall have no voting or other rights
as a shareholder of the Corporation until certificates are issued or a book entry representing such
shares has been made and such shares have been deposited with the appropriate registered book entry
custodian.

     5. Employee’s Employment by the Corporation. Nothing contained in this Agreement or
the Plan (i) obligates the Corporation to employ Recipient in any capacity whatsoever or (ii)
prohibits or restricts the Corporation from terminating the employment, if any, of Recipient at any
time or for any reason whatsoever, with or without cause, and Recipient hereby acknowledges and
agrees that neither the Corporation nor any other person or entity has made any representations or
promises whatsoever to Recipient concerning Recipient’s employment or continued employment by the
Corporation or any Subsidiary.

     6. Change in Capitalization. In the event of a dividend or distribution paid in
shares of Common Stock or any other adjustment made upon a change in the capital structure of the
Corporation as described in Article IX of the Plan that occurs prior to settlement, appropriate
adjustment shall be made to the Units so that they represent the right to receive upon settlement
any and all new, substituted or additional securities or other property (other than cash dividends)
to which Recipient would be entitled if Recipient had owned, at the time of such change in capital
structure, the shares of Common Stock issuable upon settlement of the Units.

     7. Withholding. The Corporation shall have the right to withhold from Recipient’s
compensation or to require Recipient to remit sufficient funds to satisfy applicable withholding
for income and employment taxes upon the vesting of Units pursuant to Section 2. Subject to
limitations in the Plan, Recipient may, in order to fulfill the withholding obligation, tender
previously-acquired shares of Common Stock having an aggregate Fair Market Value equal to the
amount owed. The Corporation shall be authorized to take such action as may be necessary, in the
opinion of the Corporation’s counsel (including, without limitation, withholding Common Stock
otherwise deliverable to Recipient and/or withholding amounts from any compensation or other amount
owing from the Corporation to Recipient), to satisfy the obligations for payment of any such taxes.
The Recipient shall have full responsibility, and

					
					
					
					
					
					
					
					
					
	[Recipient Name] — December 7, 2009
	 	2 of 3
	 	PU Covisint Revenue 162m

 

 

Exhibit 10.124

the Corporation shall have no responsibility (except as may be imposed by applicable law), for satisfying any liability for any federal, state
or local income or other taxes required by law to be paid with respect to such Units, including
upon the receipt, vesting or settlement of the Units. The Recipient should seek his or her own tax
counsel regarding the taxation of the Units.

     8. Limitation on Obligations. Except as provided in Section 6 above, the
Corporation’s obligation with respect to the Units is limited solely to the delivery to Recipient
of shares of Common Stock upon settlement, and in no way shall the Corporation become obligated to
pay cash or other assets in respect of such obligation. In addition, the Corporation shall not be
liable to Recipient for damages relating to any delay in issuing the shares or share certificates
or any loss of the certificates.

     9. Transfer of Units Award. Neither this Units Award nor Recipient’s rights under
this Agreement are assignable or transferable except by will or the laws of descent and
distribution, or with the Committee’s consent in accordance with Section 10.3 of the Plan.

     10. Securities Laws. Upon the vesting or settlement of any Units, the Corporation may
require Recipient to make or enter into such written representations, warranties and agreements as
the Committee may reasonably request in order to comply with applicable securities laws or with
this Agreement. The granting of the Units shall be subject to all applicable laws, rules and
regulations and to such approvals of any governmental agencies as may be required.

     11. Notices. Any notice or election to be given to the Corporation shall be addressed
to the Corporation in care of its Secretary, and any notice to Recipient shall be addressed to him
or her at the address stated in the Corporation’s records.

     12. Governing Law. The laws of the State of Michigan shall govern the interpretation,
validity and performance of the terms of this Agreement regardless of the law that might be applied
under principles of conflicts of laws.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the Grant Date.

	 	 	 	 	 
	 	RECIPIENT

 	 
	 	  	 	 
	 	 	[Recipeint Name] 	 
	 	 	 	 
	 
	 	COMPUWARE CORPORATION

 	 
	 	By:  	 	 
	 	 	[Representative Name] 	 
	 	 	Its:  [Representative Title] 	 
	 

Exec Cov

					
					
					
					
					
					
					
					
					
					
					
					
	[Recipient Name] — December 7, 2009
	 	3 of 3
	 	PU Covisint Revenue 162m

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