Document:

Exhibit 10.58

 

December 23, 2008

 

Kimberly A. Perez

Home address

Tampa, FL  zip

 

Dear Kim:

 

We
are pleased that you have accepted the position of Vice President and Chief
Financial Officer of Walter Investment Management Corporation, the surviving
entity following the merger of JWH Holding Company, LLC (“JWHHC”) with Hanover
Capital Mortgage Holdings, Inc. (“HCM”) pursuant to the Agreement and Plan
of Merger entered into between JWHHC and HCM (the “Company”). While employed,
you agree to devote your full time and efforts to advancing the Company’s
interests.

 

The purpose of this
letter is to confirm your acceptance of the terms of your employment, effective
January 1, 2009, as follows:

 

1.                                      As
Vice President and
Chief Financial Officer, you shall report to and
serve at the direction of the President and Chief Operating Officer of the Company
or to such other person as may be designated from time to time. In your
capacity as Vice
President and Chief Financial Officer,
you will be responsible for corporate accounting, preparation of financial
statements for the Board of Directors, filings with the SEC, establishment of
accounting policies and procedures for the Company, timely and reliable
financial reporting, and supervision of the accounting, finance, tax, treasury and
investor relations staff.

 

2.                                      Your
compensation package will be as follows:

 

(a)                                 Base
Salary

 

$211,010 per year,
effective January 1, 2009, which will be subject to review and adjustment
by the Compensation Committee of the Board of Directors of the Company and paid in accordance
with the payroll practices of the Company, as they may change from time to
time.

 

On the effective date of the merger of JWH Holding Company, LLC (“JWHHC”)
with Hanover Capital Mortgage Holdings, Inc. (“HCM”), your base salary
will be increased to $236,010.

 

1

 

(b)                                Bonus

 

Your annual target bonus
will be 60% of your base salary, or $126,606 at your base pay as of 1/1/09, and
$141,606 on the effective date of the merger. The amount of your bonus will
fluctuate based upon actual performance under the Company’s bonus plan as in
effect from time to time. Participation in the bonus pool is dependent upon the
achievement of the Company’s annual financial and other goals, as well as the
accomplishment of individual objectives mutually agreed upon in writing each
year. To receive a bonus, you must be employed at the time the bonus is paid.

 

(c)                                 Benefits

 

·                 You
will be entitled to receive from the Company prompt reimbursement for all
reasonable out-of-pocket business expenses incurred by you in the performance
of your duties hereunder, in accordance with the most favorable policies,
practices and procedures of the Company relating to reimbursement of business
expenses incurred by Company directors, officers or employees in effect at any
time during the 12 month period preceding the date you incur the expenses;
provided, however, that any such expense reimbursement will be made no later
than the last day of the calendar year following the calendar year in which you
incur the expense, will not affect the expenses eligible for reimbursement in
any other calendar year, and cannot be liquidated or exchanged for any other
benefit.

 

·                 Participation
in the Company’s group life and health insurance benefit programs generally
applicable to executives in the location in which you are primarily based, and in
accordance with their terms, as they may change from time to time.

 

·                 Participation
in the Company’s retirement plan, generally applicable to salaried employees in
the location in which you are primarily based, as it may change from time to
time and in accordance with its terms. 
Your eligibility to participate will be consistent with the requirements
of ERISA.

 

·                 Participation
in the Company’s long-term incentive plan as it applies to other executives and
subject to terms of the Company’s Long-Term Incentive Plan.

 

·                 Four (4) weeks of annual vacation to be
used each year, without carryover of unused vacation days, and in accordance
with the Company’s vacation policy, as it may change from time to time.

 

·                 You
will receive a monthly auto allowance of $1,000, subject to the usual
withholding taxes.

 

2

 

3.                                      It
is agreed and understood that your employment with the Company is to be at
will, and either you or the Company may terminate the employment relationship
at any time for any reason, with or without cause, and with or without notice
to the other; nothing herein or elsewhere constitutes or shall be construed as
a commitment to employ you for any period of time.

 

4.                                      You
agree that all inventions, improvements, trade secrets, reports, manuals,
computer programs, systems, tapes and other ideas and materials developed or
invented by you during the period of your employment with the Company, either
solely or in collaboration with others, which relate to the actual or
anticipated business or research of the Company, which result from or are
suggested by any work you may do for the Company, or which result from use of
the Company’s premises or the Company’s or its customers’ property
(collectively, the “Developments”) shall be the sole and exclusive property of
the Company.  You hereby assign to the
Company your entire right and interest in any such Developments, and will
hereafter execute any documents in connection therewith that the Company may
reasonably request.

 

5.                                      As
an inducement to the Company to make this offer to you, you represent and
warrant that you are not a party to any agreement or obligation for personal
services, and there exists no impediment or restraint, contractual or otherwise
on your power, right or ability to accept this offer and to perform the duties
and obligations specified herein.

 

6.                                      In the event of your Involuntary Termination
(as defined below), other than for “Cause” (also defined below), in the event
of your Constructive Termination (also defined below), other than as a result
of death or disability, you will be entitled to the following severance
benefits, in accordance with all government regulations, e.g. IRC 409A:

 

·                 12
months of base salary continuation and target bonus, including your vehicle
allowance

 

·                 Continued
participation in benefits, to the extent the plans allow, until the earlier of
the 12-month anniversary of the termination date or until you are eligible to
receive comparable benefits from subsequent employment.  The COBRA election period will not commence
until the expiration of that 12-month period. If continued participation in any
benefit plan will result in taxable reimbursement payments to you, the payment
will be provided only if the filing of the claim for payment and completion of
the reimbursement payment can reasonably be completed by the end of the
calendar year following the year in which the expense is incurred.

 

“Involuntary Termination” shall mean your termination from
employment due to the
independent exercise of unilateral authority by Company to terminate your
services, other than due to your implicit or explicit request, where you are
willing and able to continue performing services. The determination of whether
a termination of employment is involuntary is based on all the facts and
circumstances. Any reference in this Agreement to “termination of employment”
shall mean “separation from service” within the meaning of Treas. Reg. 1.409A-1(h).

 

3

 

“Cause” shall mean: (a) a willful and continued
material failure to act in accordance with the reasonable instructions of the President and Chief Operating Officer, (b) conviction of a felony arising from any
act of fraud, embezzlement or willful dishonesty in relation to the business or
affairs of the Company or any other felonious conduct on your part that is
demonstrably detrimental to the best interests of the Company or any subsidiary
or affiliate, (c) being repeatedly under the influence of illegal drugs or
alcohol while performing your duties, or (d) commission of any other
willful act that is demonstrably injurious to the financial condition or
business reputation of the Company or any subsidiary or affiliate. However, no
act or failure to act on your part shall be deemed “willful” unless done, or
omitted to be done, by you not in good faith and without reasonable belief that
the action or omission was in the best interests of the Company.

 

“Constructive
Termination” shall mean, without your written consent: (a) a material
failure of the Company to comply with the provisions of this agreement, (b) a
material diminution of your position (including status, offices, title and
reporting relationships), duties or responsibilities, (c) any purported
termination of your employment other than for Cause, or (d) forced
relocation of your primary job location more than 50 miles from the Company’s Tampa, Florida location.

 

For purposes of this Agreement, a significant diminution in
pay or responsibility shall not have occurred if: (i) the amount of
your bonus fluctuates due to performance considerations under the Company’s
executive incentive plan or other Company incentive plan applicable to you and
in effect from time to time, or (ii) you are transferred to a position of
comparable responsibility and compensation within the Company.

 

To be entitled to severance benefits under this paragraph
you must terminate employment from the Company. 
For this purpose, your termination of employment must be considered a “separation from service”
within the meaning of Code §409A(a)(2)(A)(i) and any guidance or
regulations issued thereunder.

 

To be entitled to severance benefits on the basis of
Constructive Termination the event causing Constructive Termination must not be
implemented for the purpose of avoiding the restrictions of the Code Section 409A
restrictions and you must terminate employment from the Company within one year
following the initial existence of the Constructive Termination event.  In addition, your termination of employment
may not occur before you have given the Company notice of the existence of the
Constructive Termination event and a period of at least 30 days to remedy the
situation. Your notice to the Company must occur within the 90 day period
following the initial existence of the Constructive Termination event.

 

Payments of severance pay made pursuant to this paragraph
shall be paid to you at the Company’s normal payroll dates as if you were still
employed by the Company.  The Company will not accelerate or delay
payment of such amounts to an earlier or later date except to the extent such
change in payment date is permissible under Section 409A of the Code.

 

Non-Compete.
It is understood and agreed that you will have substantial relationships with
specific businesses and personnel, prospective and existing, vendors,
contractors, customers, and employees of the Company that result in the
creation of customer goodwill.

 

4

 

Therefore,
following the termination of employment under this Agreement for any reason and
continuing for a period of twelve (12) months from the date of such
termination, so long as the Company or any affiliate, successor or assigns thereof
is in the real estate investment trust/mortgage servicing business/insurance
agency or like business within the Restricted Area (defined as the real estate
investment trust/mortgage industries in which the Company competes at the time
of your separation), unless the Board of Directors approves an exception. You
shall not, directly or indirectly, for yourself or on behalf of, or in
conjunction with, any other person, persons, company, partnership, corporation,
business entity or otherwise:

 

a.              Call upon, solicit, write, direct, divert,
influence, or accept business (either directly or indirectly) with respect to
any account or customer or prospective customer of the Company or any
corporation controlling, controlled by, under common control with, or otherwise
related to the Company, including but not limited to Walter Investment
Management Corporation, Hanover Capital Mortgage Holdings, Inc., Walter
Mortgage Company, or any other affiliated companies; or

 

b.             Hire away any independent contractors or personnel
of the Company and/or entice any
such persons to leave the employ of the Company or its affiliated entities
without the prior written consent of the Company

 

8.                                      Non-Disparagement.  Following the termination of employment under
this Agreement for any reason and continuing for so long as the Company or any
affiliate, successor or assigns thereof carries on the name or like business
within the Restricted Area, you shall not, directly or indirectly, for yourself
or on behalf of, or in conjunction with, any other person, persons, company,
partnership, corporation, business entity or otherwise:

 

a.              Make any statements or announcements or
permit anyone to make any public
statements or announcements concerning Employee’s termination with the Company,
or

 

b.             Make any statements that are inflammatory,
detrimental, slanderous, or negative in any way to the interests of the Company
or its affiliated entities.

 

9.                                      You acknowledge and agree that you will
respect and safeguard the Company’s property, trade secrets and confidential
information. You acknowledge that the Company’s electronic communication
systems (such as email and voicemail) are maintained to assist in the conduct
of the Company’s business and that such systems and data exchanged or stored
thereon are Company property.  In the
event that you leave the employ of the Company, you will not disclose any Company
trade secrets or confidential information you acquired while an employee of the
Company to any other person or entity, including without limitation, a
subsequent employer, or use such information in any manner.

 

10.                                If
any of the Company’s financial statements are required to be restated due to
errors, omissions, fraud, or misconduct, the Board of Directors may, in its
sole 

 

5

 

discretion but acting in good faith, direct that the Company recover
all or a portion of any past or future compensation from any Participant with
respect to any fiscal year of the Company for which the financial results are
negatively affected by such restatement. For purposes of this paragraph,
errors, omissions, fraud, or misconduct may include and is not limited to
circumstances where the Company has been required to prepare an accounting
restatement due to material noncompliance with any financial reporting
requirement, as enforced by the SEC, and the Board of Directors has determined
in its sole discretion that a participant had knowledge of the material
noncompliance or the circumstances that gave rise to such noncompliance and
failed to take reasonable steps to bring it to the attention of the appropriate
individuals within the company, or the participant personally and knowingly
engaged in practices which materially contributed to the circumstances that
enabled a material noncompliance to occur.

 

11.                                In the event that any portion of any payment under
this agreement, or under any other agreement with, or plan of the Company (in
the aggregate, Total Payments) would constitute an “excess parachute payment,”
such that a golden parachute excise tax is due, the Company shall provide to
you, in cash, an additional payment in an amount sufficient to cover the full
cost of any excise tax and all of your additional federal, state, and local
income, excise, and employment taxes that arise on this additional payment
(cumulatively, the Full Gross-Up Payment), such that you are in the same
after-tax position as if you had not been subject to the excise tax. For this
purpose, you shall be deemed to be in the highest marginal rate of federal, state,
and local income taxes in the state and locality of your residence on the date
of your termination. For purposes of this agreement, the term “excess parachute
payment” shall have the meaning assigned to such term in Section 280G of
the Internal Revenue Code, as amended (the Code), and the term “excise tax”
shall mean the tax imposed on such excess parachute payment pursuant to
Sections 280G and 4999 of the Code.  Any
Full Gross-Up Payment made under
this paragraph will be made by December 31 of the year next following the
calendar year in which you pay the taxes to the applicable taxing authority.

 

12.                                Tax Compliance Delay in Payment.  If the Company reasonably determines that any
payment or benefit due under this Agreement, or any other amount that may
become due to you after termination of employment, is subject to Section 409A
of the Code, and also determines that you are a “specified employee,” as
defined in Section 409A(a)(2)(B)(i) of the Code, upon your
termination of employment for any reason other than death (whether by
resignation or otherwise), no amount may be paid to you or on your behalf
earlier than six months after the date of your termination of employment (or,
if earlier, your death) if such payment would violate the provisions of Section 409A
of the Code and the regulations issued thereunder, and payment shall be made,
or commence to be made, as the case may be, on the date that is six months and
one day after your termination of employment (or, if earlier, one day after
your death).  For this purpose, you will
be considered a “specified employee” if you are employed by an employer that
has its stock publicly traded on an established securities market or certain
related entities have their stock traded on an established securities market and
you are a “key employee”, with the exact meaning of “specified employee”, “key
employee” and “publicly traded” defined in Section 409A(a)(2)(B)(i) of
the Code and the regulations thereunder. 
Notwithstanding the above, the Company hereby retains discretion to make
determinations regarding the identification of “specified employees” and to
take any necessary corporate action in connection with such determination.

 

6

 

13.                                You
acknowledge and agree that you have read this letter agreement carefully, have
been advised by the Company to consult with an attorney regarding its contents,
and that you fully understand the same.

 

14.                                It
is agreed and understood that this acceptance letter shall constitute our
entire agreement with respect to the subject matter hereof and shall supersede
all prior agreements, discussions, understandings and proposals (written or
oral) relating to your employment with the Company. This letter agreement will
be interpreted under and in accordance with the laws of the State of Florida
without regard to conflicts of laws.

 

15.                                You
and the Company intend that payments and benefits under this Agreement comply
with Code Section 409A and the regulations and guidance promulgated
thereunder (collectively “Code Section 409A”) and, accordingly, to the
maximum extent permitted, this Agreement shall be interpreted to be in
compliance therewith.  In the event that
any provision of this Agreement is determined by you or the Company to not
comply with Code Section 409A, the Company shall fully cooperate with you
to reform the Agreement to correct such noncompliance to the extent permitted
under any guidance, procedure, or other method promulgated by the Internal
Revenue Service now or in the future that provides for such correction as a
means to avoid or mitigate any taxes, interest, or penalties that would
otherwise be incurred by you on account of such non-compliance.

 

Kim, we are delighted
that you have accepted this opportunity. If the terms contained within this
letter are acceptable, please sign one of the enclosed copies and return it to
me in the envelope provided and retain one copy for your records.

 

Very truly yours,

 

	
  JWH Holding Company,
  LLC

  	
   

  
	
   

  	
   

  
	
  /s/ Charles E. Cauthen

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Charles E. Cauthen

  	
   

  
	
   

  	
  Chief Financial Officer
  of JWH Holding Company, LLC and

  	
   

  
	
   

  	
  President of Walter
  Mortgage Company

  	
   

  

 

 

ACCEPTANCE

 

I have read the
foregoing, have been advised to consult with counsel of my choice concerning
the same, and I fully understand the same. 
I approve and accept the terms set forth above as governing my
employment relationship with the Company.

 

	
  Signature:

  	
  /s/ Kimberly Perez

  	
   

  	
  Date 

  	
  12/30/08Exhibit 10.59

 

FORM OF
TRADEMARK LICENSE AGREEMENT

 

This
TRADEMARK LICENSE AGREEMENT (the “Agreement”)  made and entered into                 ,
2009 (“Effective Date”) by and between Walter Industries, Inc., a
corporation duly organized and existing under the laws of the State of Delaware
(“Walter”), and Walter Investment Management LLC, a limited liability
company duly organized and existing under the laws of the State of Delaware,
and a wholly-owned subsidiary of Walter (“Spinco,” and together with
Walter, the “Parties” and each a “Party”).

 

WHEREAS,
Walter owns all the limited liability company units of Spinco;

 

WHEREAS,
Walter intends to distribute all of its interest in Spinco to Walter’s
stockholders prior to the merger referred to below (the “Spin-Off”);

 

WHEREAS, pursuant
to the Second Amended and Restated Agreement and Plan of Merger dated February 6,
2009 (as may be further amended, supplemented, restated or otherwise modified,
the “Merger Agreement”) by and among Walter, Spinco, JWH Holding
Company, LLC (“JWHHC”), and Hanover Capital Mortgage Holdings, Inc.
(“Hanover”), following the Spin-Off, Spinco will merge into Hanover;

 

WHEREAS,
Walter or its subsidiaries (collectively, the “Walter Parties”) own
certain trademarks, domain names, corporate and/or trade names that JWHHC
and/or its subsidiaries have used in connection with its mortgage finance,
insurance, and reinsurance businesses;

 

WHEREAS,
prior to the Spin-Off, JWHHC will transfer its mortgage finance, insurance and
reinsurance businesses to Walter, and Walter will transfer such businesses to
Spinco; and

 

WHEREAS,
Spinco and its subsidiaries (collectively, the “Spinco Parties”) wish to
use certain trademarks, domain names, corporate and/or trade names following
the consummation of the Spin-Off and merger into Hanover, and Walter is willing
to permit such use;

 

NOW
THEREFORE, in consideration of the premises and the
mutual promises and covenants contained herein and for other good and valuable
consideration (including that recited in the Merger Agreement), the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

SECTION 1 - GRANT OF
LICENSE

 

1.1.                            Licenses.

 

(a)                                  Walter,
on behalf of itself and the other Walter Parties, grants to the Spinco Parties
a perpetual, non-exclusive, paid-up, non-transferable (except as permitted in Section 7.4)
license to use the trademarks, corporate and/or trade names on Exhibit A
solely in the United States, its territories and possessions, and solely in
connection with mortgage finance, lending, insurance and reinsurance services
and financial services relating to the foregoing (the “Licensed Business”).

 

 

(b)                                 Walter
hereby causes its subsidiary Jim Walter Homes, Inc. to grant to the Spinco
Parties the paid-up, non-transferable right to maintain the registrations for
the domain names on Exhibit A (the “Licensed Domains,” and together
with the other items on Exhibit A, the “Licensed Marks”) solely for
operating websites directed to customers in the United States, its territories
and possessions, and solely in connection with the Licensed Business.

 

1.2.                            Sublicensing.  Each Spinco Party may sublicense the Licensed
Marks to agents, distributors and other persons in connection with such Spinco
Party’s operation of its own business, but not for the separate or unrelated
use of any other person.  Spinco is
liable hereunder for any act or omission by any sublicensee that would breach
this Agreement if made by Spinco.

 

1.3.                            Reservations.

 

(a)                                  Spinco
acknowledges, on behalf of itself and the other Spinco Parties, that each of
them has no right under this Agreement to use any (i) trademarks, service
marks, domain names, logos, corporate or trade names, trade dress or other
source indicators (“Trademarks”) of the Walter Parties other than the
Licensed Marks; (ii) Trademark containing the term “JWH”; (iii) Trademark
containing the term “Walter,” other than the Licensed Marks; (iv) Trademark
containing the term “Jim Walter” and/or any version or variation of the “flying
W” logo depicted on Exhibit B; or (v) Trademark containing the term “Cardem.”

 

(b)                                 All
rights not expressly licensed to the Spinco Parties in Section 1.1 are
reserved to the Walter Parties, provided that
Walter agrees that each of the Walter Parties will not use or grant any person
a license to use in the Licensed Business the name “Walter” immediately
adjacent to the word “Mortgage,” “Reinsurance,” “Investment,” “Finance,” “Bank,”
or any other word that reasonably conveys to consumers any services included in
the Licensed Business.

 

1.4.                            Future
Transfer.  If at any time after the
Effective Date Walter determines it no longer wishes to own any of the Licensed
Marks, it shall notify Spinco, and upon Spinco’s request, the Parties shall
execute a transfer of any such Licensed Marks to Spinco on mutually agreeable
terms.

 

SECTION 2 – OWNERSHIP

 

Each Spinco Party agrees that, as between the
Walter Parties and Spinco Parties, the Walter Parties are the sole and
exclusive owners of the Licensed Marks and all intellectual property rights
therein.  Each Spinco Party shall, upon
the reasonable request and expense of Walter, take further actions and execute
additional documents to establish and perfect the above rights.  Each Spinco Party agrees not to question or
contest the validity of, or the Walter Parties’ rights in the Licensed Marks
and the associated goodwill.  For
clarity, the foregoing shall not limit Spinco from bringing any claim that
Walter has breached this Agreement.

 

SECTION 3 – USE

 

3.1.                            New
Marks.  Each Spinco Party may adopt
and use as Trademarks any variations of the Licensed Marks on Part I of Exhibit A,
if such Trademarks use “Walter” immediately adjacent to the word “Mortgage,” “Reinsurance,”
“Investment,” “Finance,” or any other word that reasonably conveys to consumers
any services included in the Licensed Business. 
Each

 

 

Spinco Party may adopt and use
reasonable variations of the Licensed Marks on Part II of Exhibit A
in its discretion, subject to Section 1.3. 
Spinco will give Walter prompt notice of any such new Trademark, which
will be included in the definition of “Licensed Marks” for all purposes
hereunder.

 

3.2                               Domain Names/Internet. 
Each Spinco Party will not be deemed to have breached the territorial
restriction in Section 1.1(b) if persons outside the United States access
any Internet websites operated under the Licensed Domains, provided that such
websites are controlled by such Spinco Party and are directed at U.S.
customers.  Walter will cause the
transfer of the registrations for the Licensed Domains to a designated Spinco
Party within 30 days of the Effective Date, at Spinco’s expense for Walter’s
out-of-pocket costs.

 

3.3                               Quality Assurance. 
Each Spinco Party will use the Licensed Marks solely (i) in
accordance with good trademark practice; and (ii) in connection with
products, services, content and materials maintaining quality levels at least
as high as those of Walter’s past practice and that reflect favorably on
Walter.  Each Spinco Party will not take
any action that could reasonably be expected to harm the Licensed Marks or
their associated goodwill.  Each Spinco
Party shall, at its sole expense, comply at all times with all applicable laws,
regulations, rules and reputable industry practice pertaining to the
Licensed Business and its use of the Licensed Marks.

 

3.4                               Samples.  To ensure
the Spinco Parties’ compliance with Section 3.3, upon Walter’s request,
Spinco will provide Walter with representative samples of all materials bearing
the Licensed Marks in any media, no more than once a year (unless reasonably
justified under the circumstances).  If,
in the exercise of its commercially reasonable judgment, Walter finds that any
samples violate Section 3.3, Walter will inform Spinco in writing.  Spinco will correct such non-compliance
within a reasonable time thereafter, not to exceed 30 days.

 

SECTION 4 -  INFRINGEMENT

 

Spinco will notify Walter
promptly after any Spinco Party becomes aware of any actual or threatened
infringement, imitation, dilution, misappropriation, or other unauthorized use
or conduct in derogation of the Licensed Marks. 
Walter will have the sole right to bring any claim, action, suit or
proceeding (“Action”) to remedy the foregoing, and the Spinco Parties
will cooperate with Walter in same at Walter’s expense.

 

SECTION 5 - WARRANTY
AND INDEMNITY

 

5.1.                            By
Each Party.  Each Party represents
and warrants to the other Party that (i) the warranting Party has the
requisite corporate or company power and authority to enter into this
Agreement; (ii)  the warranting Party’s execution, delivery and performance
of this Agreement has been duly authorized by all requisite corporate or
company action on its part; (iii) this Agreement has been duly executed
and delivered by the warranting Party and, assuming due authorization,
execution and delivery, constitutes a legal, valid and binding agreement,
enforceable against the warranting Party in accordance with its terms, subject
to bankruptcy, insolvency, reorganization, moratorium and similar laws of
general application relating to or affecting creditors’ rights and to general
equity principles; and (iv) neither the execution and

 

 

delivery by the warranting
Party of this Agreement or compliance and performance with any of the
provisions hereof results in a default (or an event that, with notice or lapse
of time or both, would become a default) or gives rise to any right of
termination by any third Party, cancellation, amendment or acceleration of any
obligation or the loss of any benefit under, any contract binding the
warranting Party.

 

5.2.                            DISCLAIMER.  EXCEPT AS EXPRESSLY SET FORTH IN SECTION 5.1,
THE WALTER PARTIES MAKE NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED,
WITH RESPECT TO THIS AGREEMENT OR THE LICENSED MARKS, AND EXPRESSLY DISCLAIM
SAME, INCLUDING ANY WITH RESPECT TO TITLE, NON-INFRINGEMENT, MERCHANTABILITY,
VALUE, RELIABILITY OR FITNESS FOR USE. 
EACH SPINCO PARTY’S USE OF THE LICENSED MARKS IS ON AN “AS IS” BASIS AND
IS AT ITS OWN RISK.

 

5.3.                            Indemnity.
Each Party will defend at its expense, hold harmless and indemnify the other
Party and its affiliates and their respective directors, officers,
shareholders, agents and employees against any third-party Actions and all
related losses, awards, judgments, settlements, costs, fees, expenses,
liabilities and damages (including reasonable attorneys’ fees and costs of
suit) to the extent arising out of or relating to the indemnifying Party’s
breach of this Agreement or any representations, warranties, covenants or
agreements herein.

 

SECTION 6 - TERM

 

6.1.                            Term.  The term of this Agreement commences as of
the Effective Date and lasts in perpetuity, unless termination occurs pursuant
to Section 6.2 or 6.3.

 

6.2.                            Breach.  If either Party materially breaches any
provision hereof, the non-breaching Party may terminate this Agreement if the
breaching Party does not cure such
breach within 30 days following written notice thereof (or any mutually-agreed
extension).  Any such termination shall
be effective upon written notice by Walter to Spinco made after such 30-day period
(or any mutually-agreed extension).

 

6.3.                            Bankruptcy.  To the fullest extent permitted by applicable
law, if Spinco (i) is unable to
pay its debts when due, (ii) makes any assignment for the benefit of
creditors,  (iii) files any petition
under the bankruptcy or insolvency laws, (iv) has a receiver or trustee to
be appointed for its business or property, or (v) is adjudicated bankrupt
or insolvent, Walter may at its discretion terminate this Agreement,
upon 30 days’ prior written notice.

 

6.4.                            Survival.  Sections 2, 5, 6.4, 7.5 & 7.7 shall
survive any termination of this Agreement.

 

SECTION 7 -  MISCELLANEOUS

 

7.1.                            Notice. 
All notices hereunder will be in writing and will be deemed given upon (a) confirmed
receipt of a facsimile transmission, (b) confirmed delivery of a standard
overnight courier or when delivered by hand or (c) five business days
after the date mailed by certified or registered mail (return receipt
requested), postage prepaid, to the Parties at the following addresses (or at
such other addresses for a Party as will be specified by like notice):

 

 

	
  If to
  Walter:

  	
   

  	
  If to Spinco:

  
	
   

  	
   

  	
   

  
	
  Walter Industries, Inc.

  	
   

  	
  Walter Investment
  Management, LLC

  
	
  4211 W. Boy Scout
  Blvd., 10th Floor

  	
   

  	
  4211 W. Boy Scout
  Blvd., 4th Floor

  
	
  Tampa, Florida
  33607-5724

  	
   

  	
  Tampa, Florida
  33607-5724

  
	
  Attention: General Counsel

  	
   

  	
  Attention: General
  Counsel

  
	
  Facsimile: (813) 871-4399

  	
   

  	
  Facsimile: (813)
  871- 4430

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
  Simpson Thacher & Bartlett LLP

  	
   

  	
  Simpson Thacher & Bartlett LLP

  
	
  425 Lexington Avenue

  	
   

  	
  425 Lexington Avenue

  
	
  New York, New York
  10017

  	
   

  	
  New York, New York
  10017

  
	
  Attention: Peter
  J. Gordon, Esq. and

  	
   

  	
  Attention: Peter
  J. Gordon, Esq. and

  
	
   

  	
  Lori E.
  Lesser, Esq.

  	
   

  	
   

  	
  Lori E.
  Lesser, Esq.

  
	
  Facsimile: (212)
  455-2502

  	
   

  	
  Facsimile: (212)
  455-2502

  
					

 

7.2.                            Construction.  The article
and section headings in this Agreement are for reference purposes only and will
not affect the interpretation of this Agreement.

 

7.3.                            Severability.  If any
provision of this Agreement or the application of any such provision to any
person or entity or circumstance, shall be declared judicially to be invalid,
unenforceable or void, such decision shall not have the effect of invalidating
or voiding the remainder of this Agreement, it being the Parties’ intent and
agreement that this Agreement shall be deemed amended by modifying such
provision to the extent necessary to render it valid, legal and enforceable
while preserving its intent or by substituting another provision that is legal
and enforceable and that achieves the same objective.

 

7.4.                            Assignment;
Binding Effect.  Neither this Agreement nor any of the rights,
benefits or obligations hereunder may be assigned or assumed by a Party
(whether by operation of law or otherwise) without the prior written consent of
the other Party, which consent will not be unreasonably withheld, except to an
affiliate as a result of an internal reorganization for tax or administrative
purposes.  For clarity, a merger,
reorganization (including in bankruptcy), change of control or sale of all or
substantially all of the assets or business to which this Agreement relates
constitutes an “assignment” hereunder. 
In the event of a permitted assignment hereunder, this Agreement will be
binding upon, inure to the benefit of and be enforceable by the Parties and
their respective successors and permitted assigns.  Any attempted assignment in violation of the
foregoing will be null and void at the outset.

 

7.5.                            Third
Parties. 
No person or entity (other than as specified in this Agreement) will be
deemed a third party beneficiary under or by reason of this Agreement.  Spinco is liable

 

 

hereunder for any act or
omission by any Spinco Party that would breach this Agreement if made by
Spinco.

 

7.6.                            Entire
Agreement. 
This Agreement constitutes the entire agreement of the Parties
and supersedes all prior and contemporaneous agreements and understandings,
both written and oral, between the Parties with respect to the subject matter
hereof.  Exhibits A and B are expressly
made a part of, and incorporated by reference into this Agreement.

 

7.7.                            Governing
Law/Jurisdiction.  This Agreement will be governed by, and
construed in accordance with, the laws of the State of New York applicable to
contracts made and to be performed therein. 
Each Party irrevocably submits to the jurisdiction of the state or
federal courts in New York, New York for the purposes of any Action arising out
of this Agreement.  Each party
unconditionally waives any right to a trial by jury in respect of any such
action.  The Parties agree that
irreparable damage would occur to Walter in the event that Spinco materially
breaches any provision of Sections 1-3 of this Agreement.  Therefore, Walter may seek an injunction to
prevent or enjoin such breach in the above courts without posting bond or other
security.

 

7.8.                            Counterparts.  This
Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original, but all of which together will constitute one
agreement.  Facsimile signatures will
serve as originals for purposes of binding the Parties hereto.

 

IN
WITNESS WHEREOF, the Parties have caused this
Agreement to be executed as of the date written above.

 

	
   

  	
  WALTER INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WALTER INVESTMENT

  MANAGEMENT LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

EXHIBIT A — LICENSED MARKS

 

Part I

 

Walter Investment Management
Corp.

 

Walter Investment Management LLC

 

Walter Mortgage Company

 

WMC

 

Walter Investment Reinsurance Co.
Ltd.

 

walterinvestment.com

 

walterinvestmentcorp.com

 

walter-investment.com

 

walter-investment.net

 

walter-investment.org

 

walter-investments.com

 

walter-investments.net

 

walter-investments.org

 

walterinv.com

 

walterinv.net

 

walterinv.org

 

waltermortgage.com

 

waltermortgage.net

 

waltermortgage.org

 

waltermortgageservicing.com

 

gowimc.com

 

A-1

 

Part II

 

Best Insurors

 

Best Insurors, Inc.

 

Mid-State Capital Corporation

 

Mid-State Homes, Inc.

 

Mid-State Capital, LLC

 

bestinsurors.com

 

bestinsurorsinc.com

 

A-2

 

EXHIBIT B

 

	
  The “flying W” logo —

  	
  

  

 

 

A-3

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