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<FONT SIZE=2><P ALIGN="CENTER">As filed with the Securities and Exchange Commission on July 22, 1999&#9;</P>
<P ALIGN="CENTER">Registration No. 333-______________</P>
</FONT><P><HR WIDTH="45%"></P>
<FONT SIZE=2><P>&nbsp;</P>
<P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</P>
<P ALIGN="CENTER">Washington, D.C. 205<A NAME="QuickMark"></A>49</P>
</FONT><P><HR WIDTH="45%"></P>
<B><FONT SIZE=2><P ALIGN="CENTER">FORM S-8</P>
</B><P ALIGN="CENTER">REGISTRATION STATEMENT</P>
<P ALIGN="CENTER">Under</P>
<P ALIGN="CENTER">THE SECURITIES ACT OF 1933</P>
</FONT><P><HR WIDTH="45%"></P>
<B><P ALIGN="CENTER">CLAYTON HOMES, INC.</P>
</B><I><FONT SIZE=1><P ALIGN="CENTER">(Exact name of registrant as specified in its charter)</P></I></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=730>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=36>
<P>&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP" HEIGHT=36>
<B><FONT SIZE=2><P ALIGN="CENTER">DELAWARE</B></FONT></TD>
<TD WIDTH="35%" VALIGN="TOP" HEIGHT=36>
<B><FONT SIZE=2><P ALIGN="CENTER">62-1671360</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=36>
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP">
<I><FONT SIZE=1><P ALIGN="CENTER">(State of Incorporation)</I></FONT></TD>
<TD WIDTH="35%" VALIGN="TOP">
<I><FONT SIZE=1><P ALIGN="CENTER">(I.R.S. Employer Identification No.)</I></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
</TABLE>

<I><FONT SIZE=1><P ALIGN="CENTER">&nbsp;</P>
</I></FONT><P><HR WIDTH="45%"></P>
<FONT SIZE=2><P ALIGN="CENTER">5000 Clayton Road</P>
<P ALIGN="CENTER">Maryville, Tennessee 37804</P>
</FONT><I><FONT SIZE=1><P ALIGN="CENTER">(Address of principal executive offices)</P>
</I></FONT><P><HR WIDTH="45%"></P>
<B><FONT SIZE=2><P ALIGN="CENTER">CLAYTON HOMES, INC.</P>
</B><P ALIGN="CENTER">DIRECTORS' EQUITY PLAN</P>
</FONT><I><FONT SIZE=1><P ALIGN="CENTER">(Full Title of the Plan)</P>
</I></FONT><P><HR WIDTH="45%"></P>
<FONT SIZE=2><P ALIGN="CENTER">KEVIN T. CLAYTON</P>
<P ALIGN="CENTER">5000 Clayton Road</P>
<P ALIGN="CENTER">Maryville, Tennessee 37804</P>
<P ALIGN="CENTER">(423) 380-3000</P>
</FONT><I><FONT SIZE=1><P ALIGN="CENTER">(Name, address and telephone number of agent for service)</P>
</FONT><FONT SIZE=2><P ALIGN="CENTER">&nbsp;</P>
</FONT><FONT SIZE=1><P ALIGN="CENTER">(with copies to:)</P>
</I></FONT><FONT SIZE=2><P ALIGN="CENTER">ROBERT G. MCCULLOUGH</P>
<P ALIGN="CENTER">Baker, Donelson, Bearman &amp; Caldwell </P>
<P ALIGN="CENTER">1700 Nashville City Center</P>
<P ALIGN="CENTER">511 Union Street</P>
<P ALIGN="CENTER">Nashville, Tennessee 37219</P>
<P ALIGN="CENTER">&nbsp;</P>
<B><P ALIGN="CENTER">CALCULATION OF REGISTRATION FEE</P>
</B><P ALIGN="CENTER">&nbsp;</P></FONT>
<TABLE BORDER CELLSPACING=2 BORDERCOLOR="#000000" CELLPADDING=9 WIDTH=642>
<TR><TD WIDTH="20%" VALIGN="MIDDLE" HEIGHT=51>
<P ALIGN="CENTER"><B><FONT SIZE=2>Title of Securities to be Registered</B></FONT></TD>
<TD WIDTH="20%" VALIGN="MIDDLE" HEIGHT=51>
<B><FONT SIZE=2><P ALIGN="CENTER">Amount to be Registered</B></FONT></TD>
<TD WIDTH="20%" VALIGN="MIDDLE" HEIGHT=51>
<B><FONT SIZE=2><P ALIGN="CENTER">Proposed Maximum Offering Price Per Share</B></FONT></TD>
<TD WIDTH="20%" VALIGN="MIDDLE" HEIGHT=51>
<B><FONT SIZE=2><P ALIGN="CENTER">Proposed Maximum Aggregate Offering Price</B></FONT></TD>
<TD WIDTH="20%" VALIGN="MIDDLE" HEIGHT=51>
<B><FONT SIZE=2><P ALIGN="CENTER">Amount of Registration Fee</B></FONT></TD>
</TR>
<TR><TD WIDTH="20%" VALIGN="MIDDLE" HEIGHT=32>
<FONT SIZE=2><P ALIGN="CENTER">Common Stock</FONT></TD>
<TD WIDTH="20%" VALIGN="MIDDLE" HEIGHT=32>
<FONT SIZE=2><P ALIGN="CENTER">117,864<SUP>1</SUP></FONT></TD>
<TD WIDTH="20%" VALIGN="MIDDLE" HEIGHT=32>
<FONT SIZE=2><P ALIGN="CENTER">$10.78125<SUP>2</SUP></FONT></TD>
<TD WIDTH="20%" VALIGN="MIDDLE" HEIGHT=32>
<FONT SIZE=2><P ALIGN="CENTER">$1,270,721<SUP>2</SUP></FONT></TD>
<TD WIDTH="20%" VALIGN="MIDDLE" HEIGHT=32>
<FONT SIZE=2><P ALIGN="CENTER">$353</FONT></TD>
</TR>
</TABLE>

<P><HR ALIGN="LEFT" WIDTH="45%"></P>
<FONT SIZE=2><P>&nbsp;</P></FONT>
<P ALIGN="RIGHT"><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=648>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=57>
<P ALIGN="JUSTIFY"><SUP>1</SUP></TD>
<TD WIDTH="92%" VALIGN="TOP" HEIGHT=57>
<FONT SIZE=1><P>The number of shares being registered under the Plan represents the maximum number of shares which would be purchased if eligible individuals elected to purchase all shares authorized under such Plan.</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<SUP><P>2</SUP>&#9;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=1><P>Based on the average high and low prices of the Common Stock on the New York Stock Exchange on July 19, 1999, pursuant to Rule 457(h). The Plan provides for the purchase of Common Stock at the fair market value on the dates of grants of
non-qualified stock options, which prices are presently indeterminable. </FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;</P>
</FONT><P><HR></P>
<B><FONT SIZE=4><P ALIGN="CENTER">PART II</P>
</B></FONT><P><HR></P>
<B><FONT SIZE=2><P ALIGN="JUSTIFY">Item 3. INCORPORATION OF DOCUMENTS BY REFERENCE</P>
</B><P ALIGN="JUSTIFY">The following documents filed with the Securities and Exchange Commission are incorporated herein by reference:&nbsp;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=637>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE=2>1.</FONT></TD>
<TD WIDTH="94%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">The Registrant's Annual Report on Form 10-K for the year ended June 30, 1998.</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">2.</FONT></TD>
<TD WIDTH="94%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">The Registrant's Quarterly Reports on Form 10-Q for the quarters ended September 30, 1998, December 31, 1998 and March 31, 1999.</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">3.</FONT></TD>
<TD WIDTH="94%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">The description of the Registrant's Common Stock contained in its Registration Statement on Form 8-B, filed with the Commission on March 31, 1997.</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="JUSTIFY">All documents subsequently filed by the Registrant pursuant to Sections 13(a), 13(c), 14 and 15(d) of the 1934 Act, prior to the filing of a post-effective amendment which indicates that all securities offered have been
sold or which registers all securities then remaining unsold, shall be deemed to be incorporated by reference herein and to be a part thereof from the date of filing of such documents.</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="JUSTIFY">Item 4. DESCRIPTION OF SECURITIES</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=638>
<TR><TD WIDTH="9%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">No response is required to this item.</FONT></TD>
</TR>
</TABLE>

<B><FONT SIZE=2><P ALIGN="JUSTIFY">Item 5. INTERESTS OF NAMED EXPERTS AND COUNSEL</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=638>
<TR><TD WIDTH="9%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">No response is required to this item.</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="JUSTIFY">Item 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=638>
<TR><TD VALIGN="TOP">
<P ALIGN="JUSTIFY"><FONT SIZE=2>&nbsp;The Company is incorporated under the laws of the State of Delaware. Section 145 of the General Corporation Law of the State of Delaware ("Section 145") provides that a Delaware corporation may indemnify any person
who is, or is threatened to be made, a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of such corporation), by reason of the fact
that such person was an officer, director, employee or agent of such corporation, or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses
(including attorneys fees), judgments, fines and amount paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, provided such person acted in good faith and in a manner he reasonably believed
to be in or not opposed to the corporation's best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his conduct was illegal. A Delaware corporation may indemnify any person who is, or is threatened
to be made, a party to any threatened, pending or completed action or suit by or in the right of the corporation by reason of the fact that such person was a director, officer, employee or agent of such corporation, or is or was serving at the request of
such corporation as a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys' fees) actually and reasonably incurred by such person in connection with the defense or settlement of
such action or suit, provided such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation's best interests except that no indemnification is permitted without judicial approval if the officer or
director is adjudged to be liable to the corporation. Where an officer or director is successful on the merits or otherwise in the defense of any action referred to above, the corporation must indemnify him against the expenses which such officer or
director has actually and reasonably incurred.</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">The Company's Certificate of Incorporation provides for the indemnification of directors of the Company to the fullest extent permitted by the Delaware General Corporation Law as is currently effective or may hereafter be amended from
time to time, a director of the Corporation shall not be liable to the Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director. If after filing of this Certificate of Incorporation, the Delaware General Corporation
Law is amended or a successor statute is enacted further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the Delaware
General Corporation Law or any successor statute, as so amended from time to time. Any repeal or modification of this paragraph by the shareholders of the Corporation shall not adversely affect any right or protection of a director of the Corporation
existing at the time of such repeal or modification or with respect to events occurring prior to such time.</FONT></TD>
</TR>
</TABLE>

<B><FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Item 7. EXEMPTION FROM REGISTRATION CLAIMED</B>&nbsp;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=638>
<TR><TD WIDTH="9%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">No response is required to this item.</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="JUSTIFY">&nbsp;Item 8. EXHIBITS</P>
</B><P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=638>
<TR><TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="JUSTIFY"><FONT SIZE=2>&nbsp;<U>Exhibit Number</U></FONT></TD>
<TD WIDTH="83%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="JUSTIFY">Description</U></FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP" HEIGHT=21>
<FONT SIZE=2><P ALIGN="JUSTIFY">5</FONT></TD>
<TD WIDTH="83%" VALIGN="TOP" HEIGHT=21>
<FONT SIZE=2><P ALIGN="JUSTIFY">Opinion and Consent of Baker, Donelson, Bearman &amp; Caldwell</FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">10.1 </FONT></TD>
<TD WIDTH="83%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Clayton Homes, Inc. Directors' Equity Plan</FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">24.1</FONT></TD>
<TD WIDTH="83%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Consent of Baker, Donelson, Bearman &amp; Caldwell (contained in Exhibit 5)</FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">24.2</FONT></TD>
<TD WIDTH="83%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Consent of PricewaterhouseCoopers, LLP</FONT></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">25</FONT></TD>
<TD WIDTH="83%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Power of Attorney (Included on signature page)</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="JUSTIFY">Item 9. UNDERTAKINGS</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=648>
<TR><TD WIDTH="5%" VALIGN="TOP">
<P ALIGN="JUSTIFY"><FONT SIZE=2>(a) </FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="JUSTIFY">The undersigned registrant hereby undertakes:</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">(1) </FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement to include any material information with respect to the plan of distribution not previously
disclosed in the registration statement or any material change to such information in the registration statement.</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">(2) </FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">That, for the purpose of determining any liability under the Securities Act of 1933 (the "1933 Act"), each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">(3) </FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">(b) </FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="JUSTIFY">The undersigned registrant hereby undertakes that, for the purposes of determining any liability under the 1933 Act, each filing of the registrant's annual report pursuant to Section 13(a) or Section 15(d) of the 1934 Act
(and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Act) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">(c) </FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="JUSTIFY">Insofar as indemnification for liabilities arising under the 1933 Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has
been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the 1933 Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities
(other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the 1933 Act and will be governed by the final adjudication of such issue.</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY">&#9;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</FONT><P><HR></P>
<B><FONT SIZE=2><P ALIGN="CENTER">SIGNATURES</P>
</B><P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=648>
<TR><TD VALIGN="TOP" COLSPAN=2>
<P ALIGN="JUSTIFY"><FONT SIZE=2>Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this
registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Alcoa, State of Tennessee, on the 30th day of June, 1999.</FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">
<B><FONT SIZE=2><P>CLAYTON HOMES, INC.</B></FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P>By: <U>/s/ Kevin T. Clayton </U></FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">
<FONT SIZE=2><P>Kevin T. Clayton, President</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="RIGHT">&nbsp;</P>
<B><P ALIGN="CENTER">POWER OF ATTORNEY</P>
</B><P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=655>
<TR><TD VALIGN="TOP">
<P ALIGN="JUSTIFY"><FONT SIZE=2>KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Kevin T. Clayton and Amber W. Krupacs and each of them, with full power to act without the other, his true and lawful
attorney-in-fact and agent, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments to this Registration Statement, and to file the same, with all exhibits
thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and
necessary fully to all intents and purposes as he might or could do in person thereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or his substitutes or substitute, may lawfully do or cause to be done by
virtue hereof. </FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed below by the following persons in the capacities and on the date indicated.</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=8 WIDTH=684>
<TR><TD WIDTH="30%" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><U><FONT SIZE=2>Name</B></U></FONT></TD>
<TD WIDTH="45%" VALIGN="MIDDLE">
<B><U><FONT SIZE=2><P ALIGN="CENTER">Title</B></U></FONT></TD>
<TD WIDTH="25%" VALIGN="MIDDLE">
<B><U><FONT SIZE=2><P ALIGN="CENTER">Date</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE" ROWSPAN=3 HEIGHT=18>
<FONT SIZE=2><P><U>/s/ James L. Clayton</U></P>
<P>James L. Clayton </FONT></TD>
<TD WIDTH="45%" VALIGN="TOP" HEIGHT=18>
<FONT SIZE=2><P>Chairman of the Board of Directors</FONT></TD>
<TD WIDTH="25%" VALIGN="MIDDLE" ROWSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="CENTER">June 30, 1999</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=19>
<FONT SIZE=2><P>Chief Executive Officer and Director </FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=19>
<FONT SIZE=2><P>(Principal Executive Officer)</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE" ROWSPAN=2 HEIGHT=29>
<FONT SIZE=2><P><U>/s/ Kevin T. Clayton</U></P>
<P>Kevin T. Clayton </FONT></TD>
<TD WIDTH="45%" VALIGN="TOP" HEIGHT=29>
<FONT SIZE=2><P>President</FONT></TD>
<TD WIDTH="25%" VALIGN="MIDDLE" ROWSPAN=2 HEIGHT=29>
<FONT SIZE=2><P ALIGN="CENTER">June 30, 1999</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=29>
<FONT SIZE=2><P>Chief Operating Officer and Director</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE" ROWSPAN=2 HEIGHT=29>
<FONT SIZE=2><P><U>/s/ Amber W. Krupacs</U></P>
<P>Amber W. Krupacs</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP" HEIGHT=29>
<FONT SIZE=2><P>Vice President and Secretary </FONT></TD>
<TD WIDTH="25%" VALIGN="MIDDLE" ROWSPAN=2 HEIGHT=29>
<FONT SIZE=2><P ALIGN="CENTER">June 30, 1999</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=29>
<FONT SIZE=2><P>(Principal Financial Officer)</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="25%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE" ROWSPAN=2 HEIGHT=29>
<FONT SIZE=2><P><U>/s/ Gregory A. Hamilton</U></P>
<P>Gregory A. Hamilton</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP" HEIGHT=29>
<FONT SIZE=2><P>Vice President and Controller</FONT></TD>
<TD WIDTH="25%" VALIGN="MIDDLE" ROWSPAN=2 HEIGHT=29>
<FONT SIZE=2><P ALIGN="CENTER">June 30, 1999</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=29>
<FONT SIZE=2><P>(Principal Accounting Officer)</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="45%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE">
<FONT SIZE=2><P><U>/s/ B. Joe Clayton</U></P>
<P>B. Joe Clayton</FONT></TD>
<TD WIDTH="45%" VALIGN="MIDDLE">
<FONT SIZE=2><P>Director</FONT></TD>
<TD WIDTH="25%" VALIGN="MIDDLE">
<FONT SIZE=2><P ALIGN="CENTER">June 30, 1999</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="45%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE">
<FONT SIZE=2><P><U>/s/ Dan W. Evins</U></P>
<P>Dan W. Evins</FONT></TD>
<TD WIDTH="45%" VALIGN="MIDDLE">
<FONT SIZE=2><P>Director</FONT></TD>
<TD WIDTH="25%" VALIGN="MIDDLE">
<FONT SIZE=2><P ALIGN="CENTER">June 30, 1999</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE" HEIGHT=12>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="45%" VALIGN="MIDDLE" HEIGHT=12>
<P>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="MIDDLE" HEIGHT=12>
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE">
<FONT SIZE=2><P><U>/s/ Wilma H. Jordan</U></P>
<P>Wilma H. Jordan</FONT></TD>
<TD WIDTH="45%" VALIGN="MIDDLE">
<FONT SIZE=2><P>Director</FONT></TD>
<TD WIDTH="25%" VALIGN="MIDDLE">
<FONT SIZE=2><P ALIGN="CENTER">June 30, 1999</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="45%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE">
<FONT SIZE=2><P><U>/s/ John J. Kalec</U></P>
<P>John J. Kalec</FONT></TD>
<TD WIDTH="45%" VALIGN="MIDDLE">
<FONT SIZE=2><P>Director</FONT></TD>
<TD WIDTH="25%" VALIGN="MIDDLE">
<FONT SIZE=2><P ALIGN="CENTER">June 30, 1999</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="45%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE">
<FONT SIZE=2><P><U>/s/ Thomas N. McAdams</U></P>
<P>Thomas N. McAdams</FONT></TD>
<TD WIDTH="45%" VALIGN="MIDDLE">
<FONT SIZE=2><P>Director</FONT></TD>
<TD WIDTH="25%" VALIGN="MIDDLE">
<FONT SIZE=2><P ALIGN="CENTER">June 30, 1999</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="45%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="MIDDLE">
<FONT SIZE=2><P><U>/s/ C. Warren Neel</U></P>
<P>C. Warren Neel</FONT></TD>
<TD WIDTH="45%" VALIGN="MIDDLE">
<FONT SIZE=2><P>Director</FONT></TD>
<TD WIDTH="25%" VALIGN="MIDDLE">
<FONT SIZE=2><P ALIGN="CENTER">June 30, 1999</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</FONT><P><HR></P>
<U><FONT SIZE=2><P ALIGN="CENTER">EXHIBIT 5</P>
<P ALIGN="CENTER">OPINION AND CONSENT OF BAKER, DONELSON, BEARMAN &amp; CALDWELL</P>
</U></FONT><P><HR></P>
<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=636>
<TR><TD WIDTH="48%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="52%" VALIGN="TOP">
<FONT SIZE=2><P>June 30, 1999</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=638>
<TR><TD VALIGN="TOP">
<P ALIGN="JUSTIFY"><FONT SIZE=2>Clayton Homes, Inc.</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">5000 Clayton Road</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT SIZE=2><P ALIGN="JUSTIFY">Maryville, Tennessee 37804</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;RE:&#9;Clayton Homes, Inc. Directors' Equity Plan</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=794>
<TR><TD WIDTH="92%" VALIGN="TOP" COLSPAN=15>
<FONT SIZE=2><P ALIGN="JUSTIFY">Gentlemen:</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
</TR>
<TR><TD WIDTH="82%" VALIGN="TOP" COLSPAN=11 HEIGHT=78>
<FONT SIZE=2><P ALIGN="JUSTIFY">We have acted as securities counsel for Clayton Homes, Inc., a Delaware corporation (the "Company"), in connection with the Company's Registration Statement on Form S-8 (the "Registration Statement"), pursuant to the
Securities Act of 1933, as amended, relating to the Company's 1997 Employee Stock Incentive Plan (the "Plan"). This opinion is being furnished in response to Item 601 of Regulation S-K and the instructions to Form S-8.</FONT></TD>
<TD WIDTH="18%" VALIGN="MIDDLE" COLSPAN=6 HEIGHT=78><P></P></TD>
</TR>
<TR><TD WIDTH="82%" VALIGN="TOP" COLSPAN=11 HEIGHT=43>
<FONT SIZE=2><P ALIGN="JUSTIFY">We are familiar with the proceedings to date with respect to the proposed offering and have examined such records, documents and matters of law and satisfied ourselves as to such matters of fact as we have considered
relevant for purposes of this opinion.</FONT></TD>
<TD WIDTH="18%" VALIGN="MIDDLE" COLSPAN=6 HEIGHT=43><P></P></TD>
</TR>
<TR><TD WIDTH="88%" VALIGN="TOP" COLSPAN=14>
<FONT SIZE=2><P ALIGN="JUSTIFY">On the basis of the foregoing, we are of the opinion that:</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="7%" VALIGN="MIDDLE">&nbsp;</TD>
</TR>
<TR><TD WIDTH="88%" VALIGN="TOP" COLSPAN=14>
<FONT SIZE=2><P>1. The Company is a corporation duly organized and existing under the laws of the State of Delaware.</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="7%" VALIGN="MIDDLE">&nbsp;</TD>
</TR>
<TR><TD WIDTH="88%" VALIGN="TOP" COLSPAN=14>
<FONT SIZE=2><P>2. The Plan has been duly and validly authorized and adopted, and the shares of Common Stock of the Company (the "Shares") that may be issued and sold from time to time in accordance with the Plan have been duly authorized for issuance and
will, when issued, sold and paid for in accordance with the Plan, be validly issued, fully paid and non-assessable.</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="7%" VALIGN="MIDDLE">&nbsp;</TD>
</TR>
<TR><TD WIDTH="88%" VALIGN="TOP" COLSPAN=14>
<FONT SIZE=2><P ALIGN="JUSTIFY">The foregoing opinion is limited to the federal laws of the United States and the laws of the State of Delaware, and we are expressing no opinion as to the effect of the laws of any other jurisdiction.</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="7%" VALIGN="MIDDLE">&nbsp;</TD>
</TR>
<TR><TD WIDTH="88%" VALIGN="TOP" COLSPAN=14>
<FONT SIZE=2><P ALIGN="JUSTIFY">In rendering the foregoing opinion, we have relied to the extent we deem such reliance appropriate as to certain matters on statements, representations and other information obtained from public officials, officers of the
Company and other sources believed by us to be responsible.</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="7%" VALIGN="MIDDLE">&nbsp;</TD>
</TR>
<TR><TD WIDTH="88%" VALIGN="TOP" COLSPAN=14>
<FONT SIZE=2><P ALIGN="JUSTIFY">We hereby consent to the filing of this opinion as an exhibit to the Registration Statement. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7
of the Act.</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="7%" VALIGN="MIDDLE">&nbsp;</TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<P ALIGN="RIGHT"><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=420>
<TR><TD VALIGN="TOP">
<P>&nbsp;<FONT SIZE=2>Very truly yours,</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" HEIGHT=85>
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">&nbsp;</P>
<P>BAKER, DONELSON, BEARMAN &amp; CALDWELL,</FONT></TD>
</TR>
<TR><TD VALIGN="MIDDLE" HEIGHT=20>
<P>&nbsp;</P>
<FONT SIZE=2><P>a Professional Corporation</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</FONT><P><HR></P>
<U><FONT SIZE=2><P ALIGN="CENTER">EXHIBIT 10.1</P>
</U><P ALIGN="CENTER">CLAYTON HOMES, INC. </P>
<P ALIGN="CENTER">DIRECTOR'S EQUITY PLAN</P>
</FONT><P><HR></P>
<B><FONT SIZE=5><P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">Director's Equity Plan</P>
</FONT><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Purpose</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</B><P ALIGN="JUSTIFY">The purpose of the Director's Equity Plan is to provide Clayton Homes, Inc., common stock as a component of the compensation package for __________________________________, a non-employee director of the Company elected to the Board
of Directors on _______________ (the "Participating Director") in order to strengthen the commonality of interest between the Participating Director and shareholders and improve the Company's ability to attract and retain talented individuals to serve as
Company directors.</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="JUSTIFY">Stock Option Award to the Participating Director</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</B><P ALIGN="JUSTIFY">The Stock Option is a right to purchase ______ shares of Clayton Homes, Inc., common stock at the market value at the date of grant (option price).</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="JUSTIFY">Stock Option Terms</P>
</B><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Each of the non-qualified stock options becomes exercisable in 20% installments beginning one year after the date of grant and becomes exercisable 20% each year thereafter. Should the Participating Director's Board service terminate
prior to all or a portion of an option becoming exercisable, the portion of the option not then exercisable will be canceled unless such termination is due to death or disability (see discussion below). Options will have generally a 10-year term and are
not transferrable by the Participating Director other than by will or the laws of descent.</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Upon retirement from the Board or upon earlier termination as described herein, the exercisable portion of any stock option will remain exercisable for three (3) months from such termination date.</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="JUSTIFY">Death or Disability</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</B><P ALIGN="JUSTIFY">If the Participating Director's service as a director terminates because of death or permanent disability, he (or the named beneficiary or estate) will receive the awards granted through such termination of service. For these
purposes, permanent disability will be considered to have occurred if the Participating Director would be eligible to receive a Primary Social Security Disability benefit under the definition of such laws and regulations. In either event, stock options
will become immediately exercisable, if not already exercisable. Options will then have a two-year period from the date of termination of Board service during which it can be exercised by the beneficiary, or the estate. Should the Participating Director
die during such two-year post-termination exercise period, the beneficiary or estate will have the greater of: (i) the remainder of the two-year post-termination exercise period or (ii) one year from the date of death in which to exercise the stock option.</P>
<B><P ALIGN="JUSTIFY">Changes in Capitalization</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</B><P ALIGN="JUSTIFY">In the event of any change in outstanding Clayton Homes, Inc., Common Stock which requires an adjustment in stock options and/or stock awards under the Company's stock incentive plans for employees, any such adjustment or
adjustments will also be made to the stock options hereunder.</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="JUSTIFY">Authorized Shares</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</B><P ALIGN="JUSTIFY">The maximum number of authorized shares which may be issued to the Participating Director under this Program shall be ___________ subject to adjustment as described in "Changes in Capitalization."</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="JUSTIFY">Shareholder Approval</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</B><P ALIGN="JUSTIFY">This program is subject to approval by the Company's shareholders at the ______ Annual Meeting.</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</FONT><P><HR></P>
<FONT SIZE=2><P ALIGN="CENTER"><U>EXHIBIT 24.2</U></P>
<P ALIGN="CENTER"><U>CONSENT OF PRICEWATERHOUSECOOPERS LLP</U></P>
<P ALIGN="JUSTIFY">&#9;</P>
<P ALIGN="CENTER"><U>Accountants' Consent</U></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">We hereby consent to the incorporation by reference in this registration statement of Clayton Homes, Inc. on Form S-8 of our report dated August 5, 1998, relating to the consolidated financial statements of Clayton Homes, Inc. as of
June 30, 1998 and 1997, and for the years ended June 30, 1998, 1997 and 1996, which report appears in the Annual Report on Form 10-K filed September 22, 1998.</P>
<P ALIGN="RIGHT">PricewaterhouseCoopers LLP</P>
<P>&nbsp;</P>
<P>Knoxville, Tennessee</P>
<P>July 20, 1999</P>
<P>&nbsp;</P></FONT></BODY>
</HTML>
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{"company-data": {"conformed-name": "CLAYTON HOMES INC", "cik": "0000719547", "assigned-sic": "2451", "irs-number": "621671360", "state-of-incorporation": "DE", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-83545", "film-number": "99669183"}, "business-address": {"street1": "5000 CLAYTON ROAD", "city": "MARYVILLE", "state": "TN", "zip": "37804", "phone": "4233803000X5206"}, "mail-address": {"street1": "PO BOX 15169", "city": "KNOXVILLE", "state": "TN", "zip": "37912"}}
DirEquityPlan
As filed with the Securities and Exchange Commission on July 22, 1999
Registration No. 333-______________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 205
49
FORM S-8
REGISTRATION STATEMENT
Under
THE SECURITIES ACT OF 1933
CLAYTON HOMES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
62-1671360
(State of Incorporation)
(I.R.S. Employer Identification No.)
5000 Clayton Road
Maryville, Tennessee 37804
(Address of principal executive offices)
CLAYTON HOMES, INC.
DIRECTORS' EQUITY PLAN
(Full Title of the Plan)
KEVIN T. CLAYTON
5000 Clayton Road
Maryville, Tennessee 37804
(423) 380-3000
(Name, address and telephone number of agent for service)
(with copies to:)
ROBERT G. MCCULLOUGH
Baker, Donelson, Bearman & Caldwell
1700 Nashville City Center
511 Union Street
Nashville, Tennessee 37219
CALCULATION OF REGISTRATION FEE
Title of Securities to be Registered
Amount to be Registered
Proposed Maximum Offering Price Per Share
Proposed Maximum Aggregate Offering Price
Amount of Registration Fee
Common Stock
117,864
1
$10.78125
2
$1,270,721
2
$353
1
The number of shares being registered under the Plan represents the maximum number of shares which would be purchased if eligible individuals elected to purchase all shares authorized under such Plan.
2
Based on the average high and low prices of the Common Stock on the New York Stock Exchange on July 19, 1999, pursuant to Rule 457(h). The Plan provides for the purchase of Common Stock at the fair market value on the dates of grants of
non-qualified stock options, which prices are presently indeterminable.
PART II
Item 3. INCORPORATION OF DOCUMENTS BY REFERENCE
The following documents filed with the Securities and Exchange Commission are incorporated herein by reference:
1.
The Registrant's Annual Report on Form 10-K for the year ended June 30, 1998.
2.
The Registrant's Quarterly Reports on Form 10-Q for the quarters ended September 30, 1998, December 31, 1998 and March 31, 1999.
3.
The description of the Registrant's Common Stock contained in its Registration Statement on Form 8-B, filed with the Commission on March 31, 1997.
All documents subsequently filed by the Registrant pursuant to Sections 13(a), 13(c), 14 and 15(d) of the 1934 Act, prior to the filing of a post-effective amendment which indicates that all securities offered have been
sold or which registers all securities then remaining unsold, shall be deemed to be incorporated by reference herein and to be a part thereof from the date of filing of such documents.
Item 4. DESCRIPTION OF SECURITIES
No response is required to this item.
Item 5. INTERESTS OF NAMED EXPERTS AND COUNSEL
No response is required to this item.
Item 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS
The Company is incorporated under the laws of the State of Delaware. Section 145 of the General Corporation Law of the State of Delaware ("Section 145") provides that a Delaware corporation may indemnify any person
who is, or is threatened to be made, a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of such corporation), by reason of the fact
that such person was an officer, director, employee or agent of such corporation, or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses
(including attorneys fees), judgments, fines and amount paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, provided such person acted in good faith and in a manner he reasonably believed
to be in or not opposed to the corporation's best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his conduct was illegal. A Delaware corporation may indemnify any person who is, or is threatened
to be made, a party to any threatened, pending or completed action or suit by or in the right of the corporation by reason of the fact that such person was a director, officer, employee or agent of such corporation, or is or was serving at the request of
such corporation as a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys' fees) actually and reasonably incurred by such person in connection with the defense or settlement of
such action or suit, provided such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation's best interests except that no indemnification is permitted without judicial approval if the officer or
director is adjudged to be liable to the corporation. Where an officer or director is successful on the merits or otherwise in the defense of any action referred to above, the corporation must indemnify him against the expenses which such officer or
director has actually and reasonably incurred.
The Company's Certificate of Incorporation provides for the indemnification of directors of the Company to the fullest extent permitted by the Delaware General Corporation Law as is currently effective or may hereafter be amended from
time to time, a director of the Corporation shall not be liable to the Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director. If after filing of this Certificate of Incorporation, the Delaware General Corporation
Law is amended or a successor statute is enacted further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the Delaware
General Corporation Law or any successor statute, as so amended from time to time. Any repeal or modification of this paragraph by the shareholders of the Corporation shall not adversely affect any right or protection of a director of the Corporation
existing at the time of such repeal or modification or with respect to events occurring prior to such time.
Item 7. EXEMPTION FROM REGISTRATION CLAIMED
No response is required to this item.
Item 8. EXHIBITS
Exhibit Number
Description
5
Opinion and Consent of Baker, Donelson, Bearman & Caldwell
10.1
Clayton Homes, Inc. Directors' Equity Plan
24.1
Consent of Baker, Donelson, Bearman & Caldwell (contained in Exhibit 5)
24.2
Consent of PricewaterhouseCoopers, LLP
25
Power of Attorney (Included on signature page)
Item 9. UNDERTAKINGS
(a)
The undersigned registrant hereby undertakes:
(1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement to include any material information with respect to the plan of distribution not previously
disclosed in the registration statement or any material change to such information in the registration statement.
(2)
That, for the purpose of determining any liability under the Securities Act of 1933 (the "1933 Act"), each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(b)
The undersigned registrant hereby undertakes that, for the purposes of determining any liability under the 1933 Act, each filing of the registrant's annual report pursuant to Section 13(a) or Section 15(d) of the 1934 Act
(and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Act) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c)
Insofar as indemnification for liabilities arising under the 1933 Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has
been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the 1933 Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities
(other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the 1933 Act and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this
registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Alcoa, State of Tennessee, on the 30th day of June, 1999.
CLAYTON HOMES, INC.
By:
/s/ Kevin T. Clayton
Kevin T. Clayton, President
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Kevin T. Clayton and Amber W. Krupacs and each of them, with full power to act without the other, his true and lawful
attorney-in-fact and agent, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments to this Registration Statement, and to file the same, with all exhibits
thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and
necessary fully to all intents and purposes as he might or could do in person thereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or his substitutes or substitute, may lawfully do or cause to be done by
virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed below by the following persons in the capacities and on the date indicated.
Name
Title
Date
/s/ James L. Clayton
James L. Clayton
Chairman of the Board of Directors
June 30, 1999
Chief Executive Officer and Director
(Principal Executive Officer)
/s/ Kevin T. Clayton
Kevin T. Clayton
President
June 30, 1999
Chief Operating Officer and Director
/s/ Amber W. Krupacs
Amber W. Krupacs
Vice President and Secretary
June 30, 1999
(Principal Financial Officer)
/s/ Gregory A. Hamilton
Gregory A. Hamilton
Vice President and Controller
June 30, 1999
(Principal Accounting Officer)
/s/ B. Joe Clayton
B. Joe Clayton
Director
June 30, 1999
/s/ Dan W. Evins
Dan W. Evins
Director
June 30, 1999
/s/ Wilma H. Jordan
Wilma H. Jordan
Director
June 30, 1999
/s/ John J. Kalec
John J. Kalec
Director
June 30, 1999
/s/ Thomas N. McAdams
Thomas N. McAdams
Director
June 30, 1999
/s/ C. Warren Neel
C. Warren Neel
Director
June 30, 1999
EXHIBIT 5
OPINION AND CONSENT OF BAKER, DONELSON, BEARMAN & CALDWELL
June 30, 1999
Clayton Homes, Inc.
5000 Clayton Road
Maryville, Tennessee 37804
RE:	Clayton Homes, Inc. Directors' Equity Plan
Gentlemen:
We have acted as securities counsel for Clayton Homes, Inc., a Delaware corporation (the "Company"), in connection with the Company's Registration Statement on Form S-8 (the "Registration Statement"), pursuant to the
Securities Act of 1933, as amended, relating to the Company's 1997 Employee Stock Incentive Plan (the "Plan"). This opinion is being furnished in response to Item 601 of Regulation S-K and the instructions to Form S-8.
We are familiar with the proceedings to date with respect to the proposed offering and have examined such records, documents and matters of law and satisfied ourselves as to such matters of fact as we have considered
relevant for purposes of this opinion.
On the basis of the foregoing, we are of the opinion that:
1. The Company is a corporation duly organized and existing under the laws of the State of Delaware.
2. The Plan has been duly and validly authorized and adopted, and the shares of Common Stock of the Company (the "Shares") that may be issued and sold from time to time in accordance with the Plan have been duly authorized for issuance and
will, when issued, sold and paid for in accordance with the Plan, be validly issued, fully paid and non-assessable.
The foregoing opinion is limited to the federal laws of the United States and the laws of the State of Delaware, and we are expressing no opinion as to the effect of the laws of any other jurisdiction.
In rendering the foregoing opinion, we have relied to the extent we deem such reliance appropriate as to certain matters on statements, representations and other information obtained from public officials, officers of the
Company and other sources believed by us to be responsible.
We hereby consent to the filing of this opinion as an exhibit to the Registration Statement. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7
of the Act.
Very truly yours,
BAKER, DONELSON, BEARMAN & CALDWELL,
a Professional Corporation
EXHIBIT 10.1
CLAYTON HOMES, INC.
DIRECTOR'S EQUITY PLAN
Director's Equity Plan
Purpose
The purpose of the Director's Equity Plan is to provide Clayton Homes, Inc., common stock as a component of the compensation package for __________________________________, a non-employee director of the Company elected to the Board
of Directors on _______________ (the "Participating Director") in order to strengthen the commonality of interest between the Participating Director and shareholders and improve the Company's ability to attract and retain talented individuals to serve as
Company directors.
Stock Option Award to the Participating Director
The Stock Option is a right to purchase ______ shares of Clayton Homes, Inc., common stock at the market value at the date of grant (option price).
Stock Option Terms
Each of the non-qualified stock options becomes exercisable in 20% installments beginning one year after the date of grant and becomes exercisable 20% each year thereafter. Should the Participating Director's Board service terminate
prior to all or a portion of an option becoming exercisable, the portion of the option not then exercisable will be canceled unless such termination is due to death or disability (see discussion below). Options will have generally a 10-year term and are
not transferrable by the Participating Director other than by will or the laws of descent.
Upon retirement from the Board or upon earlier termination as described herein, the exercisable portion of any stock option will remain exercisable for three (3) months from such termination date.
Death or Disability
If the Participating Director's service as a director terminates because of death or permanent disability, he (or the named beneficiary or estate) will receive the awards granted through such termination of service. For these
purposes, permanent disability will be considered to have occurred if the Participating Director would be eligible to receive a Primary Social Security Disability benefit under the definition of such laws and regulations. In either event, stock options
will become immediately exercisable, if not already exercisable. Options will then have a two-year period from the date of termination of Board service during which it can be exercised by the beneficiary, or the estate. Should the Participating Director
die during such two-year post-termination exercise period, the beneficiary or estate will have the greater of: (i) the remainder of the two-year post-termination exercise period or (ii) one year from the date of death in which to exercise the stock option.
Changes in Capitalization
In the event of any change in outstanding Clayton Homes, Inc., Common Stock which requires an adjustment in stock options and/or stock awards under the Company's stock incentive plans for employees, any such adjustment or
adjustments will also be made to the stock options hereunder.
Authorized Shares
The maximum number of authorized shares which may be issued to the Participating Director under this Program shall be ___________ subject to adjustment as described in "Changes in Capitalization."
Shareholder Approval
This program is subject to approval by the Company's shareholders at the ______ Annual Meeting.
EXHIBIT 24.2
CONSENT OF PRICEWATERHOUSECOOPERS LLP
Accountants' Consent
We hereby consent to the incorporation by reference in this registration statement of Clayton Homes, Inc. on Form S-8 of our report dated August 5, 1998, relating to the consolidated financial statements of Clayton Homes, Inc. as of
June 30, 1998 and 1997, and for the years ended June 30, 1998, 1997 and 1996, which report appears in the Annual Report on Form 10-K filed September 22, 1998.
PricewaterhouseCoopers LLP
Knoxville, Tennessee
July 20, 1999