PROSPECTUS SUPPLEMENT Pursuant to Rule 424(b)(3)
TO PROSPECTUS DATED DECEMBER 29, 1995 Registration No. 33-62487
CAVALIER HOMES, INC.
300,000 Shares of Common Stock Issuable Upon
Exercise of Stock Options Granted Under the
Dealership Stock Option Plan of
Cavalier Homes, Inc.
and the
Grants of Related Stock Options
The following information supplements, and to the extent inconsistent
therewith replaces, the information contained in the Prospectus dated December
29, 1995, relating to the 300,000 Shares of Common Stock of Cavalier Homes, Inc.
(the "Company") that are to be issued upon exercise of Options to be granted
under the Dealership Stock Option Plan of Cavalier Homes, Inc. (the "Plan").
Capitalized terms used but not defined herein are defined in the Prospectus.
DESCRIPTION OF THE PLAN
Exercise Price
The Plan originally provided that the exercise price per Share of any
Option was to be the Fair Market Value of the Share as of the date on which such
Option was granted or, if such date was not a business day, on the business day
immediately preceding such date. The Plan has been amended to provide that the
exercise price per Share of any Option will be the Fair Market Value of the
Share as of a date during the calendar quarter for which such Option is to be
granted, such date to be determined by the Plan Administrator. Accordingly, the
exercise price per Share of any Option will not necessarily be equal to the Fair
Market Value of the Share as of the date of grant.
Grant of Options for First Calendar Quarter
As of the date of this Prospectus Supplement, Options to purchase an
aggregate of 11,900 Shares had been granted with respect to the calendar quarter
ended December 31, 1995, at an exercise price of $16.375 per Share.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
The date of this Prospectus Supplement is January 25, 1996
