Document:

exv10w1w7

Exhibit 10.1.7

TRANSITION SERVICES AGREEMENT

     This Transition Services Agreement (this “Services Agreement”) is made as of April 17
2009, by and among (i) Walter Industries, Inc., a Delaware corporation (“Walter”), on
behalf of itself and each of the other Walter Entities (defined below), and (ii) Walter Investment
Management LLC, a Delaware limited liability company (“Spinco”), on behalf of itself, its
successors and each of the other Spinco Entities (defined below).

     WHEREAS, Walter, JWH Holding Company, LLC, a Delaware limited liability company
(“JWHHC”), Spinco and Hanover Capital Mortgage Holdings, Inc., a Maryland corporation
(“Hanover”), are party to that certain Second Amended and Restated Agreement and Plan of
Merger (as further amended, supplemented, restated or otherwise modified from time to time, the
“Merger Agreement”), pursuant to which in connection to other related transactions, (i)
certain assets and businesses of JWHHC will be acquired by Walter and transferred to Spinco, (ii)
prior to the Effective Time on the Closing Date, Walter shall distribute all of the outstanding
limited liability company interests in Spinco to Walter’s stockholders (such time of the
distribution, the “Distribution Date”) and (iii) at the Effective Time, Spinco shall merge
into Hanover, with Hanover being the Surviving Corporation following the Merger. Capitalized terms
used but not defined herein shall have the meaning ascribed to such terms in the Merger Agreement;

     WHEREAS, the Spinco Entities currently receive certain services from and provide certain
services to the Walter Entities;

     WHEREAS, each of the Walter Entities and the Spinco Entities desires that these services
continue to be provided after the Distribution Date, upon the terms and conditions set forth in
this Services Agreement.

     In consideration of the mutual covenants and agreements contained in this Services Agreement,
the parties hereto hereby agree as follows:

ARTICLE 1.

DEFINITIONS

1.1 Unless the context otherwise requires, the following terms (and their singular or plural) used
in this Services Agreement shall have the meanings set forth below:

	 	(a)	 	“Affiliate” shall have the meaning ascribed to such term in the Merger
Agreement after giving effect to the Distribution.
	 
	 	(b)	 	“Business Day” shall mean any day other than Saturday, Sunday or any other
day on which commercial banks are authorized to close or are closed in the states of
Florida and Maryland.

 

 

	 	(c)	 	“Disclosing Party” shall have the meaning set forth in Section 1.1(g) of this
Services Agreement.
	 
	 	(d)	 	“Distribution Date” shall have the meaning set forth in the recitals to this
Services Agreement,
	 
	 	(e)	 	“Force Majeure” shall have the meaning set forth in Section 7.1 of this
Services Agreement.
	 
	 	(f)	 	“Hanover” shall have the meaning set forth in the recitals to this Services
Agreement.
	 
	 	(g)	 	“Information” means any information obtained by a party to this Services
Agreement, its Affiliates and its and their respective officers, directors, employees,
agents, contractors and representatives (the “Receiving Party”) from any other
party to this Services Agreement, its Affiliates and its and their respective officers,
directors, employees, agents, contractors and representatives (the “Disclosing
Party”) concerning the past, present or future business activities of these entities
or persons, including any information relating to customers and related personal data,
pricing, methods, processes, financial data, lists, technical data, apparatus, statistics,
programs, specifications, documentation, research, development or related information.
	 
	 	(h)	 	“JWHHC” shall have the meaning set forth in the recitals to this Services
Agreement.
	 
	 	(i)	 	“Merger Agreement” shall have the meaning set forth in the recitals to this
Services Agreement
	 
	 	(j)	 	“Person” means an individual, partnership, corporation, trust, unincorporated
association, or other entity or association.
	 
	 	(k)	 	“Provider” shall mean the particular Walter Entity or Spinco Entity, in any
given location, that is providing services or leasing or subleasing property (as lessor)
pursuant to this Services Agreement.
	 
	 	(l)	 	“Receiving Party” shall have the meaning set forth in Section 1.1(g) of this
Services Agreement.
	 
	 	(m)	 	“Recipient” shall mean the particular Walter Entity or Spinco Entity, in any
given location, that is receiving services or leasing or subleasing property (as tenant)
pursuant to this Services Agreement.
	 
	 	(n)	 	“Spinco” shall have the meaning set forth in the preamble to this Services
Agreement.
	 
	 	(o)	 	“Spinco Entities” means, collectively, Spinco and any of its subsidiaries
that are listed as Recipients on Schedule A or as Providers on Schedule B.
	 
	 	(p)	 	“Spinco Provided Services” shall have the meaning set forth in Section 2.2 of
this Services Agreement.

 

 

	 	(q)	 	“Term” shall have the meaning set forth in Section 5.1 of this Services
Agreement.
	 
	 	(r)	 	“Walter” shall have the meaning set forth in the preamble to this Services
Agreement.
	 
	 	(s)	 	“Walter Entities” means, collectively, Walter and any of its subsidiaries
that are listed as Providers on Schedule A or as Recipients on Schedule B.
	 
	 	(t)	 	“Walter Provided Services” shall have the meaning set forth in Section 2.1 of
this Services Agreement.

Other terms are used as defined elsewhere herein.

ARTICLE 2.

SERVICES

2.1 Walter Provided Services. Pursuant to the terms of this Services Agreement, the Walter
Entities agree to provide, or cause to be provided, to the respective Spinco Entities the services
described in Schedule A to this Services Agreement (the “Walter Provided Services”).

2.2 Spinco Provided Services. Pursuant to the terms of this Services Agreement, the Spinco
Entities agree to provide, or cause to be provided, the services described in Schedule B to this
Services Agreement (the “Spinco Provided Services”).

2.3 Other Services. If, after the execution of this Services Agreement, the parties
determine that a service provided by the Walter Entities to the Spinco Entities or by the Spinco
Entities to the Walter Entities prior to the date hereof was omitted from the Schedules to this
Services Agreement, then the parties shall negotiate in good faith to agree to the terms and
conditions upon which such services would be added to this Services Agreement, it being agreed that
the charges for such services should be determined on a basis consistent with the methodology for
determining the initial prices provided for in Section 3.3.

ARTICLE 3.

COMPENSATION

3.1 Compensation for Walter Provided Services. Subject to Section 3.4, the compensation for
the Walter Provided Services for the duration of the Term shall be as described for each individual
service provided as set forth on Schedule A, plus applicable sales or value-added taxes, if any.

3.2 Compensation for Spinco Provided Services. Subject to Section 3.4, the compensation for
the Spinco Provided Services for the duration of the Term shall be as described for each

 

 

individual service as set forth on Schedule B, plus applicable sales or value-added taxes, if any.

3.3 Methodology for Determining Prices. The parties agree that the prices charged by a
Provider for any service provided hereunder shall be sufficient to cover such Provider’s reasonable
estimate of its actual costs and, if applicable, consistent with the prices such Provider would
charge to an affiliate, in each case without taking into account any profit margin or projected
savings from increased efficiency.

3.4 Price Adjustments. It is the intent of the parties that the prices set forth on the
Schedules hereto are consistent with the methodology for determining prices as described in Section
3.3. If the parties determine in good faith that the initial prices set forth on the Schedules
hereto are not consistent with such methodology, then the parties shall negotiate in good faith to
adjust such prices in a manner that is consistent with such methodology.

3.5 Allocation of Certain Expenses.

     (a) (i) In respect of software applications which are resident in the Spinco Entities while
they are affiliates of the Walter Entities, Spinco shall bear the costs and expenses of obtaining
any and all licenses for such software applications for Spinco.

          (ii) Walter and Spinco shall cooperate in good faith to minimize the costs and expenses to be
incurred pursuant to this Section 3.5(a).

     (b) Walter and Spinco shall each bear the costs and expenses of obtaining any and all consents
from third parties which may be necessary in connection with the other party’s provision of
services to the Recipient hereunder.

3.6 Terms of Payment; Dispute Resolution.

     (a) Except as otherwise expressly provided herein, Providers shall invoice Recipients monthly
(or, if mutually agreeable to Provider and Recipient, quarterly or semi-annually) in arrears for
the services provided by them under this Services Agreement. Payment in U.S. dollars shall be made
by Recipients within 30 days after receipt of any invoice. No Recipient shall withhold any payments
to its Provider under this Services Agreement, and no Provider shall withhold the provision of any
services to its Recipient, notwithstanding any dispute that may be pending between them, whether
under this Services Agreement or otherwise (any required adjustment being made on subsequent
invoices), unless such withholding is provided for in an arbitration award in accordance with
Section 9.7 of this Services Agreement.

     (b) If there is a dispute between any Recipient and any Provider regarding the amounts shown
as billed to such Recipient on any invoice, such Provider shall furnish to such Recipient
reasonable documentation to substantiate the amounts billed including, but not limited to listings
of the dates, times and amounts of the services in question where applicable and practicable. Upon
delivery of such documentation, such Recipient and such Provider shall cooperate and use their best
efforts to resolve such dispute among themselves. If such disputing parties are unable to resolve
their dispute within thirty (30) calendar days of the initiation of such

 

 

procedure, and such Recipient believes in good faith and with a reasonable basis that the amounts
shown as billed to such Recipient are inaccurate or are otherwise not in accordance with the terms
of this Services Agreement, then such Recipient shall have the right, at its own expense (subject
to any award or allocation of expenses included in any judgment rendered by the arbitrator as set
forth in Section 9.7 hereof), to commence arbitration in accordance with Section 9.1 of this
Services Agreement.

ARTICLE 4.

OCCUPANCY RIGHTS

4.1 Any employee of a Walter Entity or Spinco Entity who is located at a facility of the other
party may remain at such location for a period not to exceed 180 days after the date of the
spin-off; provided, however, that such employee shall be required to adhere to all
applicable security restrictions and guidelines at such facility. Thereafter, the owner of such
facility may require such employee(s) to vacate the premises unless, prior to such time, the
parties have executed a formal lease or other occupancy arrangement upon commercially reasonable
terms that are mutually acceptable to the parties.

ARTICLE 5.

TERM

5.1 Term. Except as expressly provided otherwise in this Services Agreement, or with
respect to specific services as indicated on the Schedules hereto, the term of this Services
Agreement shall commence on the Distribution Date and shall expire automatically at the time the
term of every service described on the Schedules hereto terminates (the “Term”). The
obligation of any Recipient to make a payment for services previously rendered shall not be
affected by the expiration of the term and shall continue until full payment is made.

5.2 Termination of Individual Services. Each of the individual services described on the
Schedules hereto has a separate term which, in respect of some services, includes a right of
extension. Unless earlier terminated pursuant to the following sentence, the obligation of a
Provider to provide a service will terminate upon the expiration of the term of such service.
Effective between the respective Provider and Recipient, a Recipient may terminate at any time
during the Term any individual service provided under this Services Agreement on a
service-by-service basis (and/or location-by-location basis where an individual service is provided
to multiple locations of a Recipient) upon written notice to the Provider identifying the
particular service (or location) to be terminated and the effective date of termination, which date
shall not be less than 30 days after receipt of such notice unless the Provider otherwise agrees.
Effective upon the termination of any service, an appropriate reduction will be made in the fees
charged to such Recipient.

ARTICLE 6.

CERTAIN COVENANTS

 

 

6.1 Points of Contact. Each Provider and Recipient shall name a point of contact which
shall be added to the Schedules hereto. Such points of contact shall be responsible for the
implementation of this Services Agreement between the respective Provider and its Recipient,
including resolutions of any issues that may arise during the performance hereunder on a day-to-day
basis.

6.2 Cooperation; Reasonable Care.

     (a) The parties will cooperate (using reasonable commercial efforts) to effect a smooth and
orderly transition of the services provided hereunder from the Providers to the respective
Recipients including, without limitation, the separation of the Spinco Entities from the Walter
Entities; provided, however, that this Section 6.2 shall not require any party
hereto to incur any out-of-pocket expenses unless and except as expressly provided otherwise
herein.

     (b) Each Provider shall perform the services that it is required to provide to its respective
Recipient(s) under this Services Agreement with reasonable skill and care and shall use at least
that degree of skill and care that it would exercise in similar circumstances in carrying out its
own business. Each Provider shall take necessary measures to protect the respective Recipient’s
data that is processed by such Provider from destruction, deletion or unauthorized change and allow
its recovery in events of Force Majeure; provided, however, that a Provider shall
be deemed to have satisfied this obligation if the measures taken to protect and recover a
Recipient’s data are equivalent to what it uses in carrying out its own business.

6.3 Migration Projects. Each Provider will provide the respective Recipient with reasonable
support necessary to transition the services, which may include consulting and training and
providing reasonable access to data and other information and to Provider’s employees;
provided, however, that such activities shall not unduly burden or interfere with
Provider’s business and operations. Where required for transitioning the services, the Recipient’s
employees will be granted reasonable access to the respective Provider’s facilities during normal
business hours.

6.4 Further Assurances. From time to time after the date hereof, without further
consideration, each party shall execute and deliver such formal lease or license agreements as
another party may reasonably request to evidence any lease or license provided for herein or
contemplated hereby.

6.5 Certain Disbursements/Receipts. The parties hereto contemplate that, from time to time,
including following the Merger, Walter Entities and/or Spinco Entities (any such party, the
“Paying Party”), as a convenience to another Spinco Entity or Walter Entity, as the case
may be (the “Responsible Party”), in connection with the transactions contemplated by this
Services Agreement, may make certain payments that are properly the responsibility of the
Responsible Party (any such payment made, a “Disbursement”). Similarly, from time to time,
Walter Entities and/or Spinco Entities (any such party, the “Payee”) may receive from third
parties certain payments to which another Spinco Entity or Walter Entity, as the case may be, is
entitled (any such party, the “Other Party”, and any such payment received, a
“Receipt”).

 

 

     (a) Disbursements.

     (i) For Disbursements made by check, the Responsible Party will reimburse the Paying
Party within three (3) Business Days after written notice of such Disbursement has been
given to the Responsible Party.

     (ii) In case of a Disbursement by electronic funds, if written notice has been given by
2:00 p.m. on the Business Day prior to the payment of such Disbursement, the Responsible
Party shall reimburse the Paying Party for the amount of such payment on the date the
Disbursement is made by the Paying Party. If notice as provided above has not been given
prior to the payment of such Disbursement, the Responsible Party shall reimburse the Paying
Party for the amount of such payment within one Business Day after receipt by the
Responsible Party of such notice from the Paying Party.

     (iii) A Paying Party shall provide such supporting documentation regarding
Disbursements for which it is seeking reimbursement as the Responsible Party may reasonably
request.

     (b) Receipts. A Payee shall remit Receipts to the Other Party within one Business Day
of receipt thereof.

     (c) Certain Exceptions. Notwithstanding anything to the contrary set forth above, if
with respect to any particular transaction(s), it is impossible or impracticable under the
circumstances to comply with the procedures set forth in Sections 6.5(a) or 6.5(b) hereof
(including the time periods specified therein), the parties will cooperate to find a mutually
agreeable alternative that will achieve substantially similar economic results from the point of
view of the Paying Party or the Other Party, as the case may be (i.e., an alternative pursuant to
which the Paying Party will not incur any material interest expense or the Other Party will not be
deprived of any material interest income); provided, however, that if a Payee
cannot comply with the procedures set forth in Section 6.5(b) hereof because it does not become
aware of a Receipt on behalf of the Other Party, then the Payee shall remit such Receipt (without
interest thereon) to the Other Party within one Business Day after the Payee becomes aware of such
Receipt.

     (d) Funding of Payroll. Notwithstanding anything which may be to the contrary set
forth in Sections 6.5(a) or 6.5(c) hereof, payroll disbursed by or at the direction of a Walter
Entity as part of the Walter Provided Services shall be funded in immediately available funds to an
account as directed by such Walter Entity on the day the direct deposits are issued to Spinco
employees; provided, that such Walter Entity notifies the respective Spinco Entity by 3:00
p.m. on the Business Day prior to the date of disbursement of the funding requirement amount (which
amount shall be grossed up to include any social security and medicare taxes and any other related
disbursements made in connection with the payroll payment to the respective employee).

     (e) Interest Rate. Any payments required by sections 6.5(a) or 6.5(b) that are not
paid by the Responsible Party or the Payee, as the case may be, within the applicable periods of
time set forth in such sections, and that are not otherwise subject to the exceptions set forth in
Section

 

 

6.5(c), shall accrue interest thereon calculated daily at the “Prime Rate” as published by the
Wall Street Journal.

ARTICLE 7.

FORCE MAJEURE

7.1 Force Majeure. No Provider shall bear any responsibility or liability for any losses,
damages, liabilities, claims, costs or expenses, including attorneys’, accountants’ or experts’
fees (“Damages”) arising out of any delay, inability to perform or interruption of its performance
of obligations under this Services Agreement due to any acts or omissions of Recipient or for
events beyond its reasonable control (hereinafter referred to as “Force Majeure”) including,
without limitation, acts of God, act of governmental authority, act of the public enemy or due to
war, riot, flood, civil commotion, insurrection, labor difficulty, severe or adverse weather
conditions, lack of or shortage of electrical power, malfunctions of equipment or software programs
or any other cause beyond the reasonable control of the Provider whose performance is affected by
the Force Majeure event.

ARTICLE 8.

INDEMNITY

8.1 Indemnity.

     (a) The Walter Entities and Spinco Entities, in both instances jointly and severally among
such Entities, will each indemnify and hold harmless the other, their agents, employees and
invitees, against all liabilities, claims, losses, damages, death or personal injury of whatever
nature or kind, arising out of their respective performance of this Services Agreement or the entry
of their respective agents, employees or invitees in the premises of the other, to the extent
occasioned by their own willful misconduct or negligent actions or omissions or the willful
misconduct or negligent actions or omissions of their respective agents, employees or invitees.

     (b) Notwithstanding the foregoing, no party shall be entitled to any damages with respect to
lost profits or other consequential damages or punitive damages with respect to the performance by
any other party under this Services Agreement.

ARTICLE 9.

MISCELLANEOUS

9.1 Resolution of Disputes; Continuation of Services Pending Outcome of Dispute. In the
event of any dispute between the parties or between Providers and Recipients, the parties agree to
be bound by the arbitration procedures set forth in Section 9.7 of this Services Agreement.
Notwithstanding the existence of any dispute between the parties, no Provider shall discontinue any
service provided for herein, unless so provided in an arbitral determination that the

 

 

respective Recipient is in default of an obligation under this Services Agreement.

9.2 Confidentiality.

     (a) Disclosure.

          (i) The Receiving Party shall hold all the Disclosing Party’s Information in confidence for
the Disclosing Party and, except as set forth in this Services Agreement (including in the
Schedules hereto) or as otherwise may be documented by the Disclosing Party in writing, the
Receiving Party shall not disclose to any person, firm or enterprise, or use for its own benefit,
any such Information. The Receiving Party may disclose Information of the Disclosing Party to its
Affiliates and its and their officers, directors, employees, agents, contractors and
representatives on a need-to-know basis and solely as required in order for the parties and their
Affiliates to perform their respective obligations under this Services Agreement. Without limiting
the foregoing, Walter, Spinco and their respective Affiliates shall (A) advise each of their
respective officers, directors, employees, agents, contractors and representatives having access to
or using such Information of the confidentiality requirements in this Services Agreement, (B) cause
each such officer, director, employee, agent, contractor and representative to comply with the
confidentiality requirements set forth in this Services Agreement (including, without limitation,
taking all reasonable measures, at its sole expense, to restrain such officer, director, employee,
agents, contractor and representative from any prohibited or authorized disclosure or use of the
Information) and (C) be responsible for any breach of such confidentiality requirements set forth
in this Agreement by any of their respective Affiliates, officers, directors, employees, agents,
contractors and representatives.

          (ii) The obligation of confidentiality contained in this Services Agreement shall not apply to
the extent that: (A) the Receiving Party is required to disclose information by Law to which the
Receiving Party is subject, provided, that the Receiving Party shall not make any such
disclosure without first notifying the Disclosing Party and allowing the Disclosing Party a
reasonable opportunity to seek injunctive relief from (or a protective order with respect to) the
obligation to make such disclosure; or (B) (I) the disclosed information was or becomes publicly
available other than as a result of the action of the Receiving Party in violation hereof, or (II)
the disclosed information was received by the Receiving Party after the date hereof on an
unrestricted basis from a source unrelated to the Disclosing Party and not known by the Receiving
Party to be under a duty of confidentiality to the Disclosing Party.

     (b) Document Retention. Promptly after the termination or expiration of this Services
Agreement, each Receiving Party shall furnish, upon reasonable request and at the expense of the
Disclosing Party, to the Disclosing Party all copies (in whatever form or medium) of all such
Information in the possession of Receiving Party. Notwithstanding the termination or expiration of
this Services Agreement or any of the services provided hereunder, each Receiving Party shall
maintain indefinitely the confidentiality of any such retained record to the same extent required
under this Services Agreement.

9.3 Notices. All notices, consents, waiver, claims and other communications hereunder (each
a “Notice”) shall be in writing and shall be (a) personally delivered, (b) deposited,
prepaid in a

 

 

nationally established overnight delivery firm such as Federal Express, (c) mailed by certified
mail, return receipt requested, or (d) transmitted by facsimile as follows:

	 
	As to Walter or any other Walter Entity:

	Walter Industries, Inc.

	4211 W. Boy Scout Blvd., 10th Floor

	Tampa, FL 33607

	Attention: General Counsel

	Fax No.: (813) 871-4420

	 

	As to Spinco or any other Spinco Entity:

	Walter Investment Management LLC

	4211 W. Boy Scout Blvd., 4th Floor

	Tampa, FL 33607

	Attention: General Counsel

	Fax No.: (813) 871- [      ]

or to any other address which such party may have subsequently communicated to the other party by a
Notice given in accordance with the provisions of this Section. Each Notice shall be deemed given
and effective upon receipt (or refusal of receipt).

9.4 Entire Agreement. This Services Agreement and the Schedules attached hereto contain
every obligation and understanding between the parties relating to the subject matter hereof and
merge all prior discussion, negotiations and agreements, if any, between them, and none of the
parties shall be bound by any representations, warranties, covenants or other understandings, other
than as expressly provided herein or therein.

9.5 Waiver and Amendment. Any representation, warranty, covenant, term or condition of this
Services Agreement which may legally be waived, may be waived, or the time of performance thereof
extended, at any time by the party hereto entitled to the benefit thereof, and any term, condition
or covenant hereto may be amended by the parties hereto at any time. Any such waiver, extension or
amendment shall be evidenced by an instrument in writing executed on behalf of the appropriate
party by a Person who has been authorized by such party to execute waivers, extensions or
amendments on its behalf. No waiver by any party hereto, whether express or implied, of its rights
under any provisions at any other time or a waiver of such party’s rights under any other provision
of this Services Agreement. No failure by any party hereto to take any action against any breach of
this Services Agreement or default by another party shall constitute a waiver of the former party’s
right to enforce any provision of this Services Agreement or to take action against such breach or
default or any subsequent breach or default by such other party.

9.6 Severability. In the event that any one or more of the provisions contained in this
Services Agreement shall be declared invalid, void or unenforceable, the remainder of the
provisions of this Services Agreement shall remain in full force and effect, and such invalid, void
or unenforceable provision shall be interpreted as closely as possible to the manner in which it
was written.

9.7 Governing Law; Jurisdiction. This Services Agreement shall be interpreted and construed

 

 

in accordance with the laws of New York applicable to contracts made and to be performed therein.
Neither party shall commence any proceeding against the other party under this Services Agreement
unless and until the parties shall have attempted in good faith to settle the underlying dispute
through negotiation or mediation for a period of not less than 30 days. If the parties have not
resolved the dispute within 30 days, then either party may initiate arbitration by notifying the
other party in writing that arbitration is demanded. The arbitration shall be conducted in
accordance with the CPR Institute for Dispute Resolution Rules for Non-Administered Arbitration
(the “Rules”) by one arbitrator. Unless the parties agree on an individual arbitrator by
name, each party shall appoint one arbitrator, obtain its appointee’s acceptance of such
appointment, and deliver written notification of such appointment and acceptance to the other party
within 10 days after delivery of the written notice demanding arbitration. The two party appointed
arbitrators shall then jointly appoint a third arbitrator, obtain the appointee’s acceptance of
such appointment and notify the parties in writing of such appointment and acceptance within 10
days after their appointment and acceptance. The arbitrator appointed by the two party-appointed
arbitrators shall serve as the sole arbitrator. If the party appointed arbitrators fail to appoint
an arbitrator within the time limits specified herein, the CPR Institute for Dispute Resolution
shall appoint the arbitrator in accordance with Article 6 of the Rules. Judgment upon the award
rendered by the arbitrator may be entered by any court having jurisdiction thereof. Unless
otherwise agreed, the place of the arbitration shall be Tampa, Florida.

9.8 Counterpart Execution. This Services Agreement may be executed in counterparts with the
same effect as if all of the parties had signed the same document. Such counterparts shall be
construed together and shall constitute one and the same instrument, notwithstanding that all of
the parties are not signatories to the original or the same instrument, or that signature pages
from different counterparts are combined. The signature of any party to one counterpart shall be
deemed to be a signature to and may be appended to any other counterpart.

9.9 Assignment. This Services Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns, provided that this Agreement may
not be assigned by either party to any Person without the prior written consent of the other party,
which consent shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, (i)
either party may assign any of its rights and obligations under this Services Agreement, in whole
or in part, to one or more wholly owned subsidiaries of such party; (ii) any party so assigning
this Services Agreement shall remain fully liable to the other party for the performance by any
assignee of any obligation of such party so assigned, and (iii) each party hereto acknowledges and
consents to the assignment, by operation of law or otherwise, of this Services Agreement to the
successor in interest of Spinco pursuant to the Merger, and this Services Agreement shall remain
binding and in full force and effect following the Merger. Any purported assignment in violation
of this Section 9.8 shall be void.

9.10 No Third Party Beneficiary. Nothing expressed or implied in this Services Agreement is
intended, or shall be construed, to confer upon or give any Person other than the parties hereto,
their respective successors and permitted assigns and the indemnities, any rights or remedies under
or by reason of this Services Agreement.

 

 

9.11 Headings and Interpretation. Titles and headings to articles and sections herein and
titles to the Schedules are inserted for convenience of reference only and are not intended to be a
part of or to affect the meaning or interpretation of this Services Agreement. The Schedules
referred to herein shall be construed with and as an integral part of this Services Agreement to
the same extent as if they were set forth verbatim herein.

9.12 Survival. Notwithstanding anything to the contrary herein, the rights and obligations
of the parties under this Services Agreement which by their nature would continue beyond the
termination of this Services Agreement, including but not limited to those set forth in Sections
3.6, 6.5, 8.1, 9.1, 9.2 and 9.7, shall survive termination of this Services Agreement.

[Signature pages to follow]

 

 

     IN WITNESS WHEREOF, the duly authorized officers or representatives of the parties hereto have
duly executed this Services Agreement as of the date first written above.

	 	 	 	 	 
	Spinco Entities:

	 	Walter Entities:	 	 
	 
	 	 	 	 
	Walter Investment Management LLC

	 	Walter Industries, Inc.	 	 
	 
	 	 	 	 
	      /s/ Mark J. O’Brien

	 	      /s/ Victor P. Patrick	 	 
	 

Name:      Mark J. O’Brien

	 	 

Name: Victor P. Patrick
	 	 
	Title:     President and Chief Executive Officer

	 	Title: Vice Chairman, Chief Financial Officer	 	 
	 

	 	                     and General Counselexv10w1w8

Exhibit 10.1.8

TAX SEPARATION AGREEMENT

     THIS TAX SEPARATION AGREEMENT (this “Agreement”) dated as of April 17, 2009 is made and
entered into by Walter Industries, Inc., a Delaware corporation (“Walter”) and the Walter
Affiliates (as defined below), and Walter Investment Management LLC, a Delaware limited liability
company (“Spinco”) and the Spinco Affiliates (as defined below).

RECITALS

     WHEREAS, Walter is the common parent corporation of an “affiliated group” of corporations
within the meaning of Section 1504(a) of the Internal Revenue Code of 1986, as amended (the
“Code”), and of certain combined groups as defined under similar laws of other jurisdictions and
Spinco and the Spinco Affiliates and WMC and the WMC Affiliates are, as of the date hereof, and
have been members of such groups;

     WHEREAS, the groups of which Walter is the common parent and Spinco and the Spinco Affiliates
and WMC and the WMC Affiliates are members file or intend to file Consolidated Returns and Combined
Returns (each as defined below);

     WHEREAS, on April 17, 2009, JWHHC’s interests in WMC, Walter Investment Reinsurance Co. Ltd.
and Best Insurors, Inc. were sold by JWHHC to Walter in exchange for cash or a note executed by
Walter;

     WHEREAS, on April 17, 2009, Walter contributed its interests in WMC, Walter Investment
Reinsurance Co. Ltd. and Best Insurors, Inc. to Spinco in exchange for all the limited liability
company interests in Spinco;

     WHEREAS, as of the date of this Agreement, Walter intends to make a distribution (the
“Distribution”) of the issued and outstanding limited liability company interests of Spinco pro
rata to the holders of Walter capital stock in a transaction that is intended to qualify as a
tax-free distribution under Section 355 of the Code;

     WHEREAS, following the Distribution, Spinco intends to merge (the “Merger”) into Hanover
Capital Mortgage Holdings, Inc. (“HCM”), with HCM being the surviving corporation in the Merger and
a successor to Spinco;

     WHEREAS, at the effective time of the Merger, the surviving corporation will be renamed Walter
Investment Management Corporation; and

     WHEREAS, Walter and Spinco desire to set forth their agreement regarding the allocation of
taxes, the filing of tax returns, the administration of tax contests and other related matters;

     NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

2

     SECTION 1. DEFINITIONS

          1.1 “ADDITIONAL TAXABLE DIVIDEND” means a dividend required to be paid by Spinco (under
Section 860 of the Code or otherwise) in order to meet the requirement of Section 857(a)(2)(B) of
the Code and maintain its status as a “real estate investment trust” for United States federal
income tax purposes, and resulting solely from an E+P Adjustment.

          1.2 “ADJUSTMENT AMOUNT” means with respect to any taxable year, and with respect to any
Non-Audit Adjustment, the amount determined under Section 3.9 of this Agreement.

          1.3 “AUDIT” includes any audit, assessment of Taxes, other examination by any Tax Authority,
proceeding, or appeal of such proceeding, relating to Taxes, whether administrative or judicial.

          1.4 “COMBINED GROUP” means a group of corporations or other entities that files a Combined
Return.

          1.5 “COMBINED RETURN” means any Tax Return with respect to Non-Federal Taxes filed on a
consolidated, combined (including nexus combination, worldwide combination, domestic combination,
line of business combination or any other form of combination) or unitary basis wherein one or more
members of the WMC Group or Spinco Group join in the filing of a Tax Return with Walter or a Walter
Affiliate that is not also a member of either such group.

          1.6 “CONSOLIDATED GROUP” means the affiliated group of corporations within the meaning of
Section 1504(a) of the Code of which Walter is the common parent and which includes the Spinco
Group and WMC Group.

          1.7 “CONSOLIDATED RETURN” means any Tax Return with respect to Federal Income Taxes filed by
the Consolidated Group pursuant to Section 1501 of the Code.

          1.8 “CURRENT TAXABLE PERIODS” means, as applicable, the taxable period commencing on January
1, 2009 and ending on the Distribution Date, and the taxable year commencing on January 1, 2008 and
ending on December 31, 2008.

          1.9 “DISTRIBUTION DATE” means the day on which the Distribution is effective.

          1.10 “DISTRIBUTION TAXES” means any (i) Taxes imposed on, or increase in Taxes incurred by,
Walter or any Walter Affiliate and (ii) any Taxes of a Walter shareholder (or former Walter
shareholder) that are required to be paid or reimbursed by Walter or any Walter Affiliate pursuant
to a legal determination, resulting from, or arising in connection with, the failure of the
Distribution to qualify as a tax-free transaction under Section 355 of the Code (including, without
limitation, any Tax resulting from the application of Section 355(d) or Section 355(e) of the Code
to the Distribution) or corresponding provisions of the laws of any other jurisdictions. Any Tax
referred to in the immediately preceding sentence shall be determined using the highest applicable
statutory rate with respect to such Taxes for the relevant taxable period (or portion thereof).

 

3

          1.11 “E+P ADJUSTMENT” means, as a result of a Final Determination, any positive adjustment to
the earnings and profits (as determined for United States federal income tax purposes) of the
Consolidated Group or any member of the Consolidated Group arising from any redetermination of any
item of income, gain, loss, deduction or credit of any member of the Consolidated Group.

          1.12 “ESTIMATED TAX INSTALLMENT DATE” means the installment due dates prescribed in Section
6655(c) of the Code (presently April 15, June 15, September 15 and December 15).

          1.13 “FEDERAL INCOME TAX” or “FEDERAL INCOME TAXES” means any tax imposed under Subtitle A of
the Code (including the taxes imposed by Sections 11, 55, 59A, and 1201(a) of the Code), including
any interest, additions to Tax, or penalties applicable thereto, and any other income based Federal
Tax which is hereinafter imposed upon corporations.

          1.14 “FEDERAL TAX” means any Tax imposed under the Code or otherwise under United States
federal Tax law.

          1.15 “FINAL DETERMINATION” means (a) the final resolution of any Tax (or other matter) for a
taxable period, including any related interest or penalties, that, under applicable law, is not
subject to further appeal, review or modification through proceedings or otherwise, including (1)
by the expiration of a statute of limitations (giving effect to any extension, waiver or mitigation
thereof) or a period for the filing of claims for refunds, amended returns, appeals from adverse
determinations, or recovering any refund (including by offset), (2) by a decision, judgment,
decree, or other order by a court of competent jurisdiction, which has become final and
unappealable, (3) by a closing agreement or an accepted offer in compromise under Section 7121 or
7122 of the Code, or comparable agreements under laws of other jurisdictions, (4) by execution of
an IRS Form 870-AD, or by a comparable form under the laws of other jurisdictions (excluding,
however, any such form that reserves (whether by its terms or by operation of law) the right of the
taxpayer to file a claim for refund and/or the right of the Tax Authority to assert a further
deficiency), or (5) by any allowance of a refund or credit, but only after the expiration of all
periods during which such refund or credit may be recovered (including by way of offset) or (b) the
payment of Tax by any member of the Consolidated Group or Combined Group with respect to any item
disallowed or adjusted by a Tax Authority provided that Walter determines that no action should be
taken to recoup such payment.

          1.16 “HOMES” means Jim Walter Homes, LLC, a subsidiary of Walter, and any of its subsidiaries.

          1.17 “IRS” means the Internal Revenue Service.

          1.18 “JWHHC” means JWH Holding Company, LLC, a Delaware limited liability company.

          1.19 “MARKET VALUATION” means as of the first business day immediately following the date on
which the Distribution is effected (i) with respect to Spinco, the fair market value of all of its
issued and outstanding limited liability company interests as of such date, or (ii) with respect to
Walter, the fair market value of all of its issued and outstanding

 

4

stock (measured using the mean of the high and low of the public trading price as published in
The Wall Street Journal) as of such date.

          1.20 “NON-AUDIT ADJUSTMENT” means the redetermination of any item of income, gain, loss,
deduction or credit of any member of the Consolidated Group or any Combined Group other than as a
result of an Audit or any settlement or compromise with any Tax Authority, provided that such
redetermination is attributable to misleading or inaccurate information provided by Spinco, any
Spinco Affiliate, WMC or any WMC Affiliate to Walter, or the failure by Spinco, any Spinco
Affiliate, WMC or any WMC Affiliate to provide material information to Walter.

          1.21 “NON-FEDERAL COMBINED TAXES” means any Non-Federal Taxes with respect to which a Combined
Return is filed.

          1.22 “NON-FEDERAL INCOME TAX” means any income-based Non-Federal Tax imposed by any Tax
Authority, including any interest, additions to Tax, or penalties applicable thereto.

          1.23 “NON-FEDERAL SEPARATE TAXES” means any Non-Federal Taxes that are not Non-Federal
Combined Taxes.

          1.24 “NON-FEDERAL TAXES” means any Tax other than a Federal Tax.

          1.25 “OFFICER’S CERTIFICATE” means a letter executed by an officer of Walter or Spinco and
provided to Tax Counsel as a condition for the completion of a Tax Opinion or Supplemental Tax
Opinion.

          1.26 “POST-DISTRIBUTION PERIOD” means a taxable period beginning after the Distribution Date.

          1.27 “PRE-DISTRIBUTION PERIOD” means any taxable period beginning on or prior to the
Distribution Date.

          1.28 “PRO FORMA SPINCO GROUP COMBINED RETURN” means a pro forma non-federal combined tax
return or other schedule prepared pursuant to Section 3.6 of this Agreement.

          1.29 “PRO FORMA SPINCO GROUP CONSOLIDATED RETURN” means a pro forma consolidated federal
income tax return prepared pursuant to Section 3.5 of this Agreement.

          1.30 “PRO FORMA WMC GROUP COMBINED RETURN” means a pro forma non-federal combined tax return
or other schedule prepared pursuant to Section 3.6 of this Agreement.

          1.31 “PRO FORMA WMC GROUP CONSOLIDATED RETURN” means a pro forma consolidated federal income
tax return prepared pursuant to Section 3.5 of this Agreement.

          1.32 “RULING” means (i) any private letter ruling issued by the IRS in connection with the
Distribution in response to a request for such a private letter ruling filed by Walter (or any
Walter Affiliate) prior to the date of the Distribution, and (ii) any similar ruling issued

 

5

by any other Tax Authority addressing the application of a provision of the laws of another
jurisdiction to the Distribution.

          1.33 “RULING DOCUMENTS” means (i) the request for a Ruling filed with the IRS, together with
any supplemental filings or other materials subsequently submitted on behalf of Walter, its
Affiliates and shareholders to the IRS, or on behalf of Spinco, its Affiliates and shareholders to
the IRS the appendices and exhibits thereto, and any Ruling issued by the IRS to Walter (or any
Walter Affiliate) or Spinco (or any Spinco Affiliate) in connection with the Distribution and (ii)
any similar filings submitted to, or rulings issued by, any other Tax Authority in connection with
the Distribution.

          1.34 “SPINCO” means Walter Investment Management LLC, a Delaware limited liability company.

          1.35 “SPINCO AFFILIATE” means any corporation or other entity, including any entity that is a
disregarded entity for federal income tax purposes, directly or indirectly “controlled” by Spinco
where “control” means the ownership of fifty percent (50%) or more of the ownership interests of
such corporation or other entity (by vote or value) or the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of such corporation or
other entity.

          1.36 “SPINCO BUSINESS” means the business and operations conducted by Spinco and its
Affiliates as such business and operations will continue after the date of the Distribution.

          1.37 “SPINCO GROUP” means the affiliated group of corporations, including any entity that is a
disregarded entity for federal income tax purposes, as defined in Section 1504(a) of the Code, or
similar group of entities as defined under similar laws of other jurisdictions, of which Spinco
would be the common parent if it were not a subsidiary of Walter, and any corporation or other
entity, including any entity that is a disregarded entity for federal income tax purposes, which
may be or become a member of such group from time to time.

          1.38 “SPINCO GROUP COMBINED TAX LIABILITY” means, with respect to any taxable year, the Spinco
Group’s liability for Non-Federal Combined Taxes as determined under Section 3.6 of this Agreement.

          1.39 “SPINCO GROUP FEDERAL INCOME TAX LIABILITY” means, with respect to any taxable year, the
Spinco Group’s liability for Federal Income Taxes as determined under Section 3.5 of this
Agreement.

          1.40 “SUPPLEMENTAL RULING” means (i) any ruling (other than the Ruling) issued by the IRS in
connection with the Distribution, and (ii) any similar ruling issued by any other Tax Authority
addressing the application of a provision of the laws of another jurisdiction to the Distribution.

          1.41 “SUPPLEMENTAL RULING DOCUMENTS” means (i) the request for a Supplemental Ruling, together
with any supplemental filings or other materials subsequently submitted, the appendices and
exhibits thereto, and any Supplemental Rulings issued by the IRS in connection with the
Distribution and (ii) any similar filings submitted to, or rulings issued by, any other Tax
Authority in connection with the Distribution.

 

6

          1.42 “SUPPLEMENTAL TAX OPINION” has the meaning set forth in Section 4.2(c) of this Agreement.

          1.43 “TAX” or “TAXES” means any charges, fees, levies, imposts, duties, or other assessments
of a similar nature, including without limitation, income, alternative or add-on minimum, gross
receipts, excise, employment, sales, use, transfer, license, payroll, franchise, severance, stamp,
occupation, windfall profits, withholding, Social Security, unemployment, disability, ad valorem,
estimated, highway use, commercial rent, capital stock, paid up capital, recording, registration,
property, real property gains, value added, business license, custom duties, or other tax or
governmental fee of any kind whatsoever, imposed or required to be withheld by any Tax Authority
including any interest, additions to Tax, or penalties applicable thereto.

          1.44 “TAX ASSET” means any net operating loss, net capital loss, investment tax credit,
foreign tax credit, charitable deduction or any other deduction, credit or tax attribute which
could reduce Taxes (including without limitation deductions and credits related to alternative
minimum taxes).

          1.45 “TAX AUTHORITY” includes the IRS and any state, local, or other governmental authority
responsible for the administration of any Taxes.

          1.46 “TAX COUNSEL” means a nationally recognized law firm or accounting firm selected by
Walter to provide a Tax Opinion or a Supplemental Tax Opinion.

          1.47 “TAX OPINION” means an opinion issued by PricewaterhouseCoopers LLP addressing certain
United States federal income tax consequences of the Distribution under Section 355 of the Code as
one of the conditions to completing the Distribution.

          1.48 “TAX RETURN” OR “TAX RETURNS” means any return, declaration, statement, report, schedule,
certificate, form, information return or any other document (and any related or supporting
information) including an amended tax return required to be supplied to, or filed with, a Tax
Authority with respect to Taxes.

          1.49 “TAXABLE DIVIDEND” means the dividend paid by Spinco in the form of cash and Spinco
interests immediately subsequent to the Distribution and immediately preceding the Merger.

          1.50 “WALTER AFFILIATE” means any corporation or other entity, including any entity that is
disregarded for federal income tax purposes, directly or indirectly “controlled” by Walter where
“control” means the ownership of fifty percent (50%) or more of the ownership interests of such
corporation or other entity (by vote or value) or the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of such corporation or other
entity, but at all times excluding Spinco and any Spinco Affiliate, and WMC and any WMC affiliate,
as applicable.

          1.51 “WALTER BUSINESS” means all of the businesses and operations conducted by Walter and any
Walter Affiliates, excluding the Spinco Business or the WMC Business, at any time, whether prior
to, or after the Distribution Date.

          1.52 “WALTER GROUP” means the affiliated group of corporations, including any entity that is a
disregarded entity for federal income tax purposes, as defined in Section

 

7

1504(a) of the Code, or similar group of entities as defined under similar laws of other
jurisdictions, of which Walter is the common parent, and any corporation or other entity, including
any entity that is a disregarded entity for federal income tax purposes, which may be or become a
member of such group from time to time.

          1.53 “WMC” means Walter Mortgage Company LLC, a Delaware limited liability company.

          1.54 “WMC AFFILIATE” means (i) any corporation or other entity, including any entity that is
disregarded for federal income tax purposes, directly or indirectly “controlled” by WMC where
“control” means the ownership of fifty percent (50%) or more of the ownership interests of such
corporation or other entity (by vote or value) or the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of such corporation or other
entity, (ii) Best Insurors, Inc. and (iii) Walter Investment Reinsurance Co., Ltd.

          1.55 “WMC BUSINESS” means all of the businesses and operations conducted by WMC and any WMC
Affiliates, as such business and operations will continue after the date of the Distribution.

          1.56 “WMC GROUP COMBINED TAX LIABILITY” means, with respect to any taxable year, the WMC
Group’s liability for Non-Federal Combined Taxes as determined under Section 3.6 of this Agreement.

          1.57 “WMC GROUP FEDERAL INCOME TAX LIABILITY” means, with respect to any taxable year, the WMC
Group’s liability for Federal Income Taxes as determined under Section 3.5 of this Agreement.

          1.58 “WMC GROUP” means the affiliated group of corporations, including any entity that is a
disregarded entity for federal income tax purposes, as defined in Section 1504(a) of the Code, or
similar group of entities as defined under similar laws of other jurisdictions, of which WMC would
be the common parent if it were not a subsidiary of Spinco, and any corporation or other entity,
including any entity that is a disregarded entity for federal income tax purposes, which may be or
become a member of such group from time to time. Such group shall also include Best Insurors, Inc.
and Walter Investment Reinsurance Co., Ltd.

     SECTION 2. PREPARATION AND FILING OF TAX RETURNS

          2.1 IN GENERAL. (a) Walter shall have the sole and exclusive responsibility for the
preparation and filing of any Consolidated Return or Combined Return.

          (b) Spinco shall, subject to Section 2.2 of this Agreement, be responsible for preparing and
filing all Tax Returns of Spinco and the Spinco Affiliates, and of WMC and the WMC Affiliates,
other than those described in Section 2.1(a) of this Agreement.

          2.2 PREPARATION AND FILING OF RETURNS. (a) All Tax Returns described in Section 2.1 of this
Agreement shall be (1) prepared in a manner that is consistent with Section 4 of this Agreement
and the Code, and (2) filed on a timely basis (taking into account applicable extensions) by the
party responsible for such filing under Section 2.1 of this Agreement.

 

8

          (b) Subject to Section 2.2(a) of this Agreement, Walter, in its sole discretion, shall have
the exclusive right with respect to any Consolidated Return or Combined Return (a) to determine (1)
the manner in which such Tax Return shall be prepared and filed, including, without limitation, the
manner in which any item of income, gain, loss, deduction or credit shall be reported, (2) whether
any extensions may be requested, (3) the elections that will be made by any member of the
Consolidated Group or applicable Combined Group, and (4) whether any amended Tax Returns should be
filed, (b) to control, contest, and represent the interests of the Consolidated Group and any
Combined Group in any Audit and to resolve, settle, or agree to any adjustment or deficiency
proposed, asserted or assessed as a result of any Audit, (c) to file, prosecute, compromise or
settle any claim for refund, and (d) to determine whether any refunds, to which the Consolidated
Group or applicable Combined Group may be entitled, shall be paid by way of refund or credited
against the Tax liability of the Consolidated Group or applicable Combined Group. Spinco, for
itself and its subsidiaries, hereby irrevocably appoints Walter as its agent and attorney-in-fact
to take such action (including the execution of documents) as Walter may deem appropriate to effect
the foregoing.

          2.3 FURNISHING INFORMATION. (a) Spinco (or the applicable Spinco Affiliate) shall, to the
extent commercially reasonable,(i) furnish to Walter in a timely manner such information, documents
and assistance as Walter may reasonably request for purposes of (1) preparing any original or
amended Consolidated Return or Combined Return, (2) contesting or defending any Audit relating to a
Consolidated Return or a Combined Return, and (3) making any determination or computation necessary
or appropriate under this Agreement; (ii) cooperate and provide assistance in any Audit of any
Consolidated Return or Combined Return; (iii) retain and provide on demand books, records,
documentation or other information relating to any Tax Return and maintain and provide support to
Walter (including the provision of the appropriate personnel as further described in Section 2.3(b)
of this Agreement) with respect to any electronic financial systems that provide information
relating to historical data, including data required to be sourced from the “mainframe” (the data
that is maintained by Walter that was sourced from the McCormick and Dodge system and its
predecessor (the “Mainframe”) or the related data that may at any time be transferred from the
mainframe to an alternate database, until the later of (1) the expiration of the applicable statute
of limitations (giving effect to any extension, waiver, or mitigation thereof) and (2) in the event
any claim is made under this Agreement for which such information is relevant, until a Final
Determination with respect to such claim; and (iv) take such action as Walter may deem appropriate
in connection therewith. For purposes of this Section 2.3(a), such assistance shall include, but
not be limited to, the making available of individuals with expertise relating to matters that are
the subject of any Audit or proceeding, or relating to any information or documents requested under
this Section 2.3(a), at the times and in the manner requested by Walter.

          (b) For purposes of Section 2.3(a) of this Agreement, the provision of appropriate personnel
shall include, without limitation, the following persons: (i) Joe Kelly, Executive VP of WMC, shall
be made available, to the extent commercially reasonable, upon request to provide data required to
be sourced from the Mainframe, (ii) Kim Perez, CFO, and Ann Carballa, Director of Systems
Integration, of WMC, shall be made available, to the extent commercially reasonable, to provide
data requests specifically for the periods post 2002, upon which time the Company converted from
the Mainframe to alternate systems, and to assist Joe Kelly in providing data requests for data
prior to 2002. In addition, WMC shall use its commercially reasonable best efforts to assure that
the knowledge of the individuals

 

9

described in clause (i) and (ii), as it pertains to the data requests, shall be transferred to
others within the WMC organization should these individuals leave the employ of WMC, unless
prevented by the circumstances of such departure.

          (c) Walter shall, to the extent commercially reasonable, furnish to Spinco (or the applicable
Spinco Affiliate) in a timely manner such assistance as Spinco may reasonably require for purposes
of preparing any Tax Return relating to the Taxes of the Spinco Group for any Pre-Distribution
Period, and Walter shall, to the extent commercially reasonable, provide Spinco (or the applicable
Spinco Affiliate) any assistance reasonably required in providing any information requested
pursuant to this Section 2.3. For purposes of this Section 2.3(e), such assistance shall include,
but not be limited to, the making available of individuals with expertise relating to the matters
described in this Section 2.3, at the times and in the manner reasonably requested by Spinco. For
the avoidance of doubt, the obligations of Walter under this Section 2.3(e) shall in no way limit
its obligations under any other agreements entered into in connection with the Distribution.

     SECTION 3. PAYMENT OF TAXES AND TAX SHARING AMOUNTS

          3.1 FEDERAL INCOME TAXES. Walter shall pay (or cause to be paid) to the IRS all Federal Income
Taxes, if any, of the Consolidated Group.

          3.2 NON-FEDERAL COMBINED TAXES. Walter shall pay (or cause to be paid) to the appropriate Tax
Authorities all Non-Federal Combined Taxes, if any, of any Combined Group.

          3.3 NON-FEDERAL SEPARATE TAXES AND OTHER TAXES. Spinco shall pay to the appropriate Tax
Authorities all Non-Federal Separate Taxes and any other Taxes (other than those described in
Section 3.1 and Section 3.2 of this Agreement), if any, of Spinco and the Spinco Affiliates, and of
WMC and the WMC Affiliates, including, without limitation, those for any Pre-Distribution Period
(or portion thereof ending on the Distribution Date) arising as a result of a Final Determination
with respect to Federal Income Taxes that requires an adjustment to any Taxes described in this
Section 3.3. With respect to any Current Taxable Period, the Non-Federal Separate Taxes and any
other Taxes described in this Section 3.3 shall include any Non-Federal Separate Taxes and any
other Taxes owed by JWHHC (as the former parent of the WMC Group for such periods) to the extent
attributable to the income of WMC or the WMC Affiliates, and, accordingly, shall be payable by
Spinco to JWHHC or Walter not later than 15 business days after it is notified by Walter of the
amount due. Notwithstanding the foregoing, any 1098 reporting penalties imposed by the IRS relating
to a Pre-Distribution Period shall be paid by Walter. For purposes of this Section, “1098 reporting
penalties” shall mean any penalties that result solely from a determination that the amount of
interest reported with respect to the financing contracts associated with the sale of homes by
Homes was incorrectly reported on IRS Form 1098.

          3.4 SPINCO LIABILITY FOR FEDERAL INCOME TAXES AND NON-FEDERAL COMBINED TAXES FOR CURRENT
TAXABLE YEARS. For each Current Taxable Period, Spinco shall pay to Walter an amount equal to,
without duplication, the sum of (1) the WMC Group Federal Income Tax Liability, (2) the WMC Group
Combined Tax Liability, (3) the Spinco Group Federal Income Tax Liability and (4) the Spinco Group
Combined Tax Liability, for such period, as determined pursuant to Sections 3.5 and 3.6 of this
Agreement, and in the manner described in Section 3.8 of this Agreement.

 

10

          3.5 WMC GROUP AND SPINCO GROUP FEDERAL INCOME TAX LIABILITY. (a) WMC GROUP FEDERAL INCOME
TAX LIABILITY. The WMC Group Federal Income Tax Liability for a Current Taxable Period shall be the
WMC Group’s liability for Federal Income Taxes for such taxable period, as determined on a Pro
Forma WMC Group Consolidated Return prepared in accordance with Section 3.5(b) of this Agreement.

          (b) PRO FORMA WMC GROUP CONSOLIDATED RETURN. With respect to a Current Taxable Period, Walter
shall prepare or cause to be prepared (and, as requested by Walter, Spinco shall cooperate in
preparing) a Pro Forma WMC Group Consolidated Return as if the WMC Group were not and never were
part of the Consolidated Group, but rather were a separate affiliated group of corporations of
which WMC were the common parent filing a consolidated federal income tax return for such period
pursuant to Section 1501 of the Code. For the avoidance of doubt, the Pro Forma WMC Group
Consolidated Return shall be prepared without regard to the conversion of WMC to a disregarded
entity, treating WMC as a corporation for these purposes.

          (c) SPINCO GROUP FEDERAL INCOME TAX LIABILITY. The Spinco Group Federal Income Tax Liability
for a Current Taxable Period shall be the Spinco Group’s liability for Federal Income Taxes for
such taxable period, as determined on a Pro Forma Spinco Group Consolidated Return prepared in
accordance with Section 3.5(d) of this Agreement.

          (d) PRO FORMA SPINCO GROUP CONSOLIDATED RETURN. With respect to a Current Taxable Period,
Walter shall prepare or cause to be prepared (and, as requested by Walter, Spinco shall cooperate
in preparing) a Pro Forma Spinco Group Consolidated Return as if the Spinco Group were not and
never were part of the Consolidated Group, but rather were a separate affiliated group of
corporations of which Spinco were the common parent filing a consolidated federal income tax return
for such period pursuant to Section 1501 of the Code.

          3.6 WMC GROUP AND SPINCO GROUP COMBINED TAX LIABILITY. (a) WMC GROUP COMBINED TAX LIABILITY.
The WMC Group Combined Tax Liability for a Current Taxable Period shall be the sum for such taxable
period of the WMC Group’s liability for each Non-Federal Combined Tax, as determined on Pro Forma
WMC Group Combined Returns prepared in a manner consistent with the principles and procedures set
forth in Section 3.5(b) hereof. For the avoidance of doubt, the Pro Forma WMC Group Combined
Return shall be prepared without regard to the conversion of WMC to a disregarded entity for U.S.
federal income tax purposes, treating WMC as a corporation for these purposes, and Spinco and the
WMC Group shall be liable for such taxes pursuant to Section 3.4 of this Agreement, regardless of
whether JWHHC is ultimately responsible for filing the Tax Returns relating to such Non-Federal
Combined Taxes.

          (b) SPINCO GROUP COMBINED TAX LIABILITY. The Spinco Group Combined Tax Liability for a Current
Taxable Period shall be the sum for such taxable period of the Spinco Group’s liability for each
Non-Federal Combined Tax, as determined on Pro Forma Spinco Group Combined Returns prepared in a
manner consistent with the principles and procedures set forth in Section 3.5(d) hereof.

          3.7 TAX SHARING INSTALLMENT PAYMENTS. (a) WMC GROUP FEDERAL INCOME TAXES. For each Estimated
Tax Installment Date with respect to any

 

11

Current Taxable Period, Walter shall determine under Section 6655 of the Code the estimated
amount of the related installment of the WMC Group Federal Income Tax Liability and shall notify
Spinco of such amount. Spinco shall then pay to Walter, not later than 15 business days after it is
notified by Walter of such amount, the amount thus determined.

          (b) WMC GROUP NON-FEDERAL COMBINED TAXES. For each estimated tax installment date with respect
to Non-Federal Combined Taxes for any Current Taxable Period, Walter shall determine the estimated
amount of the related installment of the WMC Group Combined Tax Liability and shall notify Spinco
of such amount. Spinco shall pay to Walter, not later than 15 business days after it is notified
by Walter of such amount, the amount thus determined.

          (c) SPINCO GROUP FEDERAL INCOME TAXES. For each Estimated Tax Installment Date with respect to
any Current Taxable Period, Walter shall determine under Section 6655 of the Code the estimated
amount of the related installment of the Spinco Group Federal Income Tax Liability and shall notify
Spinco of such amount. Spinco shall then pay to Walter, not later than 15 business days after it is
notified by Walter of such amount, the amount thus determined.

          (d) SPINCO GROUP NON-FEDERAL COMBINED TAXES. For each estimated tax installment date with
respect to Non-Federal Combined Taxes for any Current Taxable Period, Walter shall determine the
estimated amount of the related installment of the Spinco Group Combined Tax Liability and shall
notify Spinco of such amount. Spinco shall pay to Walter, not later than 15 business days after it
is notified by Walter of such amount, the amount thus determined.

          3.8 TAX SHARING TRUE-UP PAYMENTS. (a) FEDERAL INCOME TAXES. Not later than 60 business days
after the Consolidated Return is filed with respect to any Current Taxable Period, Walter shall
deliver to Spinco a Pro Forma WMC Group Consolidated Return and a Pro Forma Spinco Group
Consolidated Return or other comparable schedules reflecting the WMC Group Federal Income Tax
Liability and Spinco Group Federal Income Tax Liability for such period. Not later than 10 business
days after the date such Pro Forma WMC Group Consolidated Return and Pro Forma Spinco Group
Consolidated Return or other schedules are delivered, Spinco shall pay to Walter, or Walter shall
pay to Spinco, as appropriate, an amount equal to (i) the difference, if any, between the WMC Group
Federal Income Tax Liability for such taxable period and the aggregate amount paid by Spinco with
respect to such taxable period under Section 3.7(a) of this Agreement, and (ii) the difference, if
any, between the Spinco Group Federal Income Tax Liability for such taxable period and the
aggregate amount paid by Spinco with respect to such taxable period under Section 3.7(c) of this
Agreement. Notwithstanding anything to the contrary herein, Walter shall only be required to make a
payment to Spinco pursuant to this Section 3.8(a) to the extent it has received a refund of Federal
Income Taxes attributable to such amounts; and in no event shall such payment be required prior to
15 days after the receipt of such refund.

          (b) NON-FEDERAL COMBINED TAXES. Not later than 60 business days after the Combined Return is
filed with respect to any taxable period described in Section 3.4, Walter shall deliver to Spinco a
Pro Forma WMC Group Combined Return and a Pro Forma Spinco Group Combined Return or other
comparable schedules reflecting the WMC Group Combined Tax Liability and Spinco Group Combined Tax
Liability for such taxable year (or portion thereof ending on the Distribution Date). Not later
than 10 business days following

 

12

delivery of such Pro Forma WMC Group Combined Return and Pro Forma Spinco Group Combined
Return or other schedules, Spinco shall pay to Walter, or Walter shall pay to Spinco, as
appropriate, an amount equal to (i) the difference, if any, between the WMC Group Combined Tax
Liability for such taxable year (or portion thereof ending on the Distribution Date) and the amount
paid by Spinco with respect to such taxable year (or portion thereof ending on the Distribution
Date) under Section 3.7(b) of this Agreement, and (ii) the difference, if any, between the Spinco
Group Combined Tax Liability for such taxable period and the aggregate amount paid by Spinco with
respect to such taxable period under Section 3.7(d) of this Agreement. Notwithstanding anything to
the contrary herein, Walter shall only be required to make a payment to Spinco pursuant to this
Section 3.8(b) to the extent it has received a refund of Non-Federal Combined Taxes attributable to
such amounts; and in no event shall such payment be required prior to 15 days after the receipt of
such refund.

          3.9 ADJUSTMENT AMOUNT. (a) IN GENERAL. In the event of any Non-Audit Adjustment, Spinco
shall pay Walter the Adjustment Amount.

          (b) COMPUTATION. The Adjustment Amount shall be equal to the sum of (A) the difference
between (1) the sum of the WMC Group Federal Income Tax Liability and the WMC Group Combined Tax
Liability that would have been computed under Sections 3.5 and 3.6 for the taxable year to which
the Non-Audit Adjustment relates had such year been a Current Taxable Period, taking such Non-Audit
Adjustment into account, and (2) the sum of the WMC Group Federal Income Tax Liability and the WMC
Group Combined Tax Liability that would have been computed under Sections 3.5 and 3.6 for the
taxable year to which the Non-Audit Adjustment relates had such year been a Current Taxable Period,
without regard to such Non-Audit Adjustment; and (B) the difference between (1) the sum of the
Spinco Group Federal Income Tax Liability and the Spinco Group Combined Tax Liability that would
have been computed under Sections 3.5 and 3.6 for the taxable year to which the Non-Audit
Adjustment relates had such year been a Current Taxable Period, taking such Non-Audit Adjustment
into account, and (2) the sum of the Spinco Group Federal Income Tax Liability and the Spinco Group
Combined Tax Liability that would have been computed under Sections 3.5 and 3.6 for the taxable
year to which the Non-Audit Adjustment relates had such year been a Current Taxable Period, without
regard to such Non-Audit Adjustment.

          (c) PAYMENT. Walter shall deliver to Spinco a schedule reflecting the computation of any
Adjustment Amount with respect to any applicable taxable year. Not later than 5 business days after
the date such schedule is delivered, Spinco shall pay Walter such Adjustment Amount.

          3.10 INTEREST ON LATE PAYMENTS. Payments made between Walter and Spinco under this Section 3
that are not made within the prescribed period shall thereafter bear interest at the short term
applicable federal rate, (as defined in Section 1274 of the Code and as determined by the IRS from
time to time) plus 350 basis points.

     SECTION 4. DISTRIBUTION TAXES

          4.1 CONTINUING COVENANTS. Spinco, for itself, the Spinco Affiliates, WMC and the WMC
Affiliates, covenants that on or after the Distribution Date it will not (nor will it cause or
permit any member of the Spinco Group to), (i) make or change any tax election, (ii) change any
accounting method, (iii) amend any Tax Return or take any Tax position on any Tax Return that is
inconsistent with any Tax position on any Tax Return of

 

13

the Walter Group, or (iv) take any action, omit to take any action or enter into any
transaction that results in any increased Tax liability or reduction of any Tax Asset of the Walter
Group; unless any such action is required by a Final Determination.

          4.2 ADDITIONAL CONTINUING COVENANTS. (a) Spinco RESTRICTIONS. Spinco agrees that it will
not take or fail to take, or permit any Spinco Affiliate, WMC or any WMC Affiliate to take or fail
to take, any action where such action or failure to act would be inconsistent with any material,
information, covenant or representation that relates to facts or matters related to Spinco or WMC,
any Spinco Affiliate or WMC Affiliate, or the Spinco Business or WMC Business or that is within the
control of Spinco, any Spinco Affiliate, WMC or any WMC Affiliate, and is contained in an Officer’s
Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents, Supplemental Ruling
Documents, Ruling, or Supplemental Ruling. For this purpose an action is considered inconsistent
with a representation if the representation states that there is no plan or intention to take such
action. Spinco agrees that it will not take (and it will cause the Spinco Affiliates, WMC and the
WMC Affiliates to refrain from taking) any position on a Tax Return that is inconsistent with the
treatment of the Distribution as a tax-free transaction under Section 355 of the Code.

          (b) WALTER RESTRICTIONS. Walter agrees that it will not take or fail to take, or permit any
Walter Affiliate to take or fail to take, any action where such action or failure to act would be
inconsistent with any material, information, covenant or representation that relates to facts or
matters related to Walter (or any Walter Affiliate) or within the control of Walter and is
contained in an Officer’s Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents,
Supplemental Ruling Documents, Ruling, or Supplemental Ruling. For this purpose an action is
considered inconsistent with a representation if the representation states that there is no plan or
intention to take such action. Walter agrees that it will not take (and it will cause the Walter
Affiliates to refrain from taking) any position on a Tax Return that is inconsistent with the
treatment of the Distribution as a tax-free transaction under Section 355 of the Code.

          (c) CERTAIN SPINCO ACTIONS FOLLOWING THE DISTRIBUTION. Spinco agrees that, during the 2-year
period following the Distribution, without first obtaining, at Spinco’s own expense, either a
supplemental opinion from Tax Counsel that such action will not result in Distribution Taxes (a
“Supplemental Tax Opinion”) or a Supplemental Ruling that such action will not result in
Distribution Taxes, unless in any such case Walter and Spinco agree in writing otherwise, Spinco
shall not (1) sell all or substantially all of the assets of Spinco or any Spinco Affiliate, (2)
merge Spinco or any Spinco Affiliate with another entity, without regard to which party is the
surviving entity, (3) transfer any assets of Spinco in a transaction described in Section 351
(other than a transfer to a corporation which files a consolidated return with Spinco and which is
wholly-owned, directly or indirectly, by Spinco) or subparagraph (C) or (D) of Section 368(a)(1) of
the Code, (4) issue stock of Spinco or any Spinco Affiliate (or any instrument that is convertible
or exchangeable into any such stock) in an acquisition or public or private offering, or (5)
facilitate or otherwise participate in any acquisition of stock in Spinco that would result in any
shareholder owning five percent (5%) or more of the outstanding stock of Spinco. Spinco or any
Spinco Affiliate shall only undertake any of such actions after Walter’s receipt of such
Supplemental Tax Opinion or Supplemental Ruling and pursuant to the terms and conditions of any
such Supplemental Tax Opinion or Supplemental Ruling or as otherwise consented to in writing in
advance by Walter. The parties hereby agree that they will act in

 

14

good faith to take all reasonable steps necessary to amend this Section 4.2(c), from time to
time, by mutual agreement, to (i) add certain actions to the list contained herein, or (ii) remove
certain actions from the list contained herein, in either case, in order to reflect any relevant
change in law, regulation or administrative interpretation occurring after the date of this
Agreement. For the avoidance of doubt, nothing in this Agreement shall in any way prevent or
prohibit Spinco from consummating the Merger.

          (d) NOTICE OF SPECIFIED TRANSACTIONS. Not later than 30 days prior to entering into any oral
or written contract or agreement, and not later than 5 days after it first becomes aware of any
negotiations, plan or intention (regardless of whether it is a party to such negotiations, plan or
intention), regarding any of the transactions described in Section 4.2(c) of this Agreement, Spinco
shall provide written notice of its intent to consummate such transaction or the negotiations, plan
or intention of which it becomes aware, as the case may be, to Walter.

          4.3 DISTRIBUTION TAXES. The parties have set forth how certain Tax matters with respect to a
Distribution would be handled. Notwithstanding Section 3 of this Agreement, this Section 4.3 shall
govern with respect to any and all Distribution Taxes whenever imposed.

          (a) WALTER’S LIABILITY FOR DISTRIBUTION TAXES. Walter and each Walter Affiliate shall be
jointly and severally liable for any Distribution Taxes, to the extent that such Distribution Taxes
are attributable to, caused by, or result from, one or more of the following:

     (1) any action or omission by Walter (or any Walter Affiliate) inconsistent with any material,
information, covenant or representation related to Walter, any Walter Affiliate, or the Walter
Business in an Officer’s Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents,
Supplemental Ruling Documents, Ruling, or Supplemental Ruling (for the avoidance of doubt,
disclosure of any action or fact that is inconsistent with any material, information, covenant or
representation submitted to Tax Counsel, the IRS, or other Tax Authority, as applicable, in
connection with an Officer’s Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents,
Supplemental Ruling Documents, Ruling, or Supplemental Ruling shall not relieve Walter (or any
Walter Affiliate) of liability under this Agreement);

     (2) any action or omission by Walter (or any Walter Affiliate), including a cessation,
transfer to affiliates, or disposition of its active trades or businesses, or an issuance of stock,
stock buyback or payment of an extraordinary dividend by Walter (or any Walter Affiliate) following
the Distribution;

     (3) any acquisition of any stock or assets of Walter (or any Walter Affiliate) by one or more
other persons (other than Spinco or a Spinco Affiliate) prior to or following the Distribution; or

     (4) any issuance of stock by Walter (or any Walter Affiliate).

          (b) SPINCO’S LIABILITY FOR DISTRIBUTION TAXES. Spinco and each Spinco Affiliate shall be
jointly and severally liable for any Distribution Taxes, to the extent that such Distribution Taxes
are attributable to, caused by, or result from, one or more of the following:

 

15

     (1) any action or omission by Spinco (or any Spinco Affiliate) after the Distribution at any
time, that is inconsistent with any material, information, covenant or representation related to
Spinco or WMC, or any Spinco Affiliate or WMC Affiliate, or the Spinco Business or the WMC
Business, in an Officer’s Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents,
Supplemental Ruling Documents, Ruling, or Supplemental Ruling (for the avoidance of doubt,
disclosure by Spinco (or any Spinco Affiliate) to Walter (or any Walter Affiliate) of any action or
fact that is inconsistent with any material, information, covenant or representation submitted to
Tax Counsel, the IRS, or other Tax Authority, as applicable, in connection with an Officer’s
Certificate, Tax Opinion, Supplemental Tax Opinion, Ruling Documents, Supplemental Ruling
Documents, Ruling, or Supplemental Ruling shall not relieve Spinco (or any Spinco Affiliate) of
liability under this Agreement);

     (2) any action or omission by Spinco (or any Spinco Affiliate) after the date of the
Distribution (including any act or omission that is in furtherance of, connected to, or part of a
plan or series of related transactions (within the meaning of Section 355(e) of the Code) occurring
on or prior to the date of the Distribution) including a cessation, transfer to affiliates or
disposition of the active trades or businesses of Spinco (or any Spinco Affiliate), stock buyback
or payment of an extraordinary dividend (other than the payment of the Taxable Dividend);

     (3) any acquisition (other than the Merger, and for the avoidance of doubt, other than in
connection with the Taxable Dividend) of any stock (or limited liability company interests) or
assets of Spinco (or any Spinco Affiliate) by one or more other persons (other than Walter or any
Walter Affiliate) prior to or following the Distribution; or

     (4) any issuance of stock (or limited liability company interests) by Spinco (or any Spinco
Affiliate) after the Distribution, including any issuance pursuant to the exercise of employee
stock options or other employment related arrangements or the exercise of warrants, other than in
connection with the Taxable Dividend.

        (c) JOINT LIABILITY FOR REMAINING DISTRIBUTION TAXES. Walter and each Walter Affiliate shall
be liable for a percentage of any Distribution Taxes (not otherwise allocated by Sections 4.3(a) or
(b) of this Agreement) equal to the quotient of (i) Walter’s Market Valuation, divided by (ii) the
sum of (x) Walter’s Market Valuation, and (y) Spinco’s Market Valuation. Spinco and each Spinco
Affiliate shall be jointly and severally liable for a percentage of any Distribution Taxes (not
otherwise allocated by Sections 4.3(a) or (b) of this Agreement) equal to the quotient of (i)
Spinco’s Market Valuation, divided by (ii) the sum of (x) Walter’s Market Valuation, and (y)
Spinco’s Market Valuation.

     SECTION 5. EARNINGS AND PROFITS ADJUSTMENTS

          5.1 NOTICE. Walter shall notify Spinco within 75 days of an E+P Adjustment.

          5.2 REIMBURSEMENT.

          (a) IN GENERAL. To the extent that Spinco is required to pay an Additional Taxable Dividend,
Walter shall pay Spinco an amount in cash equal to the lesser of (i) the Additional Taxable
Dividend actually paid by Spinco multiplied by the percentage of the Taxable Dividend that was paid
in cash and (ii) the amount of such Additional Taxable Dividend actually paid in cash.

 

16

     (b) TIMING. Such payment shall be made no later than 2 business days after the date on which
such Additional Taxable Dividend is made.

     SECTION 6. MISCELLANEOUS

          6.1 TERM. All rights and obligations arising hereunder shall survive until they are fully
effectuated or performed provided that, notwithstanding anything in this Agreement to the contrary,
this Agreement shall remain in effect and its provisions shall survive for the full period of all
applicable statutes of limitation (giving effect to any extension, waiver or mitigation thereof).

          6.2 ALLOCATIONS. (a) IN GENERAL. All computations with respect to any Pre-Distribution
Period shall be made pursuant to the principles of Treasury Regulations Section 1.1502-76(b),
taking into account such elections thereunder as Walter, in its sole discretion, shall make.

     (b) TAX ASSETS. Walter shall advise Spinco in writing within 90 days after the filing of the
Consolidated Return for the taxable year that includes the Distribution Date of the allocation of
any Tax Assets among Walter, each Walter Affiliate, Spinco, and each Spinco Affiliate. The parties
hereby agree that, for purposes of determining such allocation, Walter shall be free to use any
legally permissible method of allocation in its sole discretion.

          6.3 FINAL DETERMINATIONS. Spinco and the Spinco Affiliates agree to be bound by (and to report
its Taxes consistently with) any Final Determination relating to Spinco, any Spinco Affiliate, WMC
and any WMC Affiliate for any Pre-Distribution Period (or portion thereof ending on the
Distribution Date), even if such Final Determination affects a Post-Distribution Period (or portion
of a Pre-Distribution Period beginning after the Distribution Date).

          6.4 CHANGES IN LAW. Any reference to a provision of the Code or a similar law of another
jurisdiction shall include a reference to any successor provision to such provision.

          6.5 CONFIDENTIALITY. Each party shall hold and cause its advisors and consultants to hold in
strict confidence, unless compelled to disclose by judicial or administrative process or, in the
opinion of its counsel, by other requirements of law, all information (other than any such
information relating solely to the business or affairs of such party) concerning the other parties
hereto furnished it by such other party or its representatives pursuant to this Agreement (except
to the extent that such information can be shown to have been (a) previously known by the party to
which it was furnished, (b) in the public domain through no fault of such party, or (c) later
lawfully acquired from other sources not under a duty of confidentiality by the party to which it
was furnished), and each party shall not release or disclose such information to any other person,
except its auditors, attorneys, financial advisors, bankers and other consultants who shall be
advised of and agree to be bound by the provisions of this Section 6.5. Each party shall be deemed
to have satisfied its obligation to hold confidential information concerning or supplied by the
other party if it exercises the same care as it takes to preserve confidentiality for its own
similar information.

          6.6 SUCCESSORS. This Agreement shall be binding on and inure to the benefit of any successor,
by merger, acquisition of assets or otherwise, to any of the parties hereto

 

17

(including any successor of Walter and Spinco succeeding to the tax attributes of such party
under Section 381 of the Code), to the same extent as if such successor had been an original party,
and shall apply after the Merger to Walter Investment Management Corporation as successor to
Spinco.

          6.7 AUTHORIZATION, ETC. Each of the parties hereto hereby represents and warrants that it has
the power and authority to execute, deliver and perform this Agreement, that this Agreement has
been duly authorized by all necessary corporate action on the part of such party, that this
Agreement constitutes a legal, valid and binding obligation of each such party and that the
execution, delivery and performance of this Agreement by such party does not contravene or conflict
with any provision of law or of its charter or bylaws or any agreement, instrument or order binding
on such party.

          6.8 ENTIRE AGREEMENT. This Agreement contains the entire agreement among the parties hereto
with respect to the subject matter hereof and supersedes all prior agreements.

          6.9 SECTION CAPTIONS. Section captions used in this Agreement are for convenience and
reference only and shall not affect the construction of this Agreement.

          6.10 GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York without giving effect to laws and principles relating to conflicts of
law.

          6.11 COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
Agreement.

          6.12 WAIVERS AND AMENDMENTS. This Agreement shall not be waived, amended or otherwise
modified except in writing, duly executed by all of the parties hereto.

          6.13 SEVERABILITY. In case any one or more of the provisions in this Agreement should be
invalid, illegal or unenforceable, the enforceability of the remaining provisions hereof will not
in any way be effected or impaired thereby.

          6.14 NO THIRD PARTY BENEFICIARIES. This Agreement is solely for the benefit of the parties to
this Agreement and each Walter Affiliate and Spinco Affiliate and should not be deemed to confer
upon third parties any remedy, claim, liability, reimbursement, claim of action or other rights in
excess of those existing without this Agreement.

          6.15 OTHER REMEDIES. Spinco recognizes that any failure by it or any Spinco Affiliate (and
WMC or any WMC Affiliates) to comply with its obligations under Section 4 of this Agreement would
result in Distribution Taxes that would cause irreparable harm to Walter, Walter Affiliates, and
their stockholders. Accordingly, Walter shall be entitled to an injunction or injunctions to
prevent breaches of this Agreement and to enforce specifically the terms and provisions of this
Agreement, this being in addition to any other remedy to which Walter is entitled at law or in
equity.

 

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by a
duly authorized officer as of the date first above written.

	 	 	 	 	 
	 	WALTER INDUSTRIES, INC.

on behalf of itself and the Walter Affiliates

 	 
	 	By:  	/s/  Victor P. Patrick 
 	 
	 	Name:  	Victor P. Patrick 	 
	 	Title:	Vice Chairman, Chief Financial Officer and General Counsel 	 
	 
	 	WALTER INVESTMENT MANAGEMENT LLC,

on behalf of itself and the Spinco Affiliates

 	 
	 	By:  	/s/  Mark J. O’Brien 
 	 
	 	Name:  	Mark J. O’Brien 	 
	 	Title:  	Chairman and Chief Executive Officer

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