Document:

exv10w1w25

Exhibit 10.1.25

WALTER
INVESTMENT MANAGEMENT CORP.

ARTICLES OF AMENDMENT AND RESTATEMENT

          FIRST: Hanover Capital Mortgage Holdings, Inc., a Maryland corporation (the
“Corporation”), desires to amend and restate its charter as currently in effect and as hereinafter
amended.

          SECOND: The following provisions are all the provisions of the charter currently in
effect and as hereinafter amended:

ARTICLE FIRST

NAME

          The name of the corporation (the “Corporation”) is:

Hanover Capital Mortgage Holdings, Inc.

ARTICLE SECOND

PURPOSE

          The purposes for which the Corporation is formed are to engage in any lawful act or activity
(including, without limitation or obligation, engaging in business as a real estate investment
trust under the Internal Revenue Code of 1986, as amended, or any successor statute (the “Code”))
for which corporations may be organized under the general laws of the State of Maryland as now or
hereafter in force. As used herein, “REIT” means a real estate investment trust under Sections 856
through 860 of the Code.

ARTICLE THIRD

PRINCIPAL OFFICE IN STATE

          The address of the principal office of the Corporation in the State of Maryland is c/o
CSC-Lawyers Incorporating Service Company, 7 St. Paul Street, Suite 1660, Baltimore, Maryland
21202.

 

 

ARTICLE FOURTH

RESIDENT AGENT

          The name of the resident agent of the Corporation in the State of Maryland is CSC-Lawyers
Incorporating Service Company, whose post address is c/o 7 St. Paul Street, Suite 1660, Baltimore,
Maryland 21202. The resident agent is a Maryland corporation.

ARTICLE FIFTH

REIT QUALIFICATION

          If the Corporation elects to qualify for federal income tax treatment as a REIT, the Board of
Directors of the Corporation (the “Board of Directors” or the “Board”) shall use its reasonable
best efforts to take such actions as are necessary or appropriate to preserve the status of the
Corporation as a REIT; however, if the Board of Directors determines that it is no longer in the
best interests of the Corporation to continue to be qualified as a REIT, the Board of Directors may
revoke or otherwise terminate the Corporation’s REIT election pursuant to Section 856(g) of the
Code. The Board of Directors also may determine compliance with any restriction or limitation on
stock ownership and transfers set forth in Article NINTH is no longer required for REIT
qualification.

ARTICLE SIXTH

STOCK

          (a) Authorized Shares. The Corporation has authority to issue 100,000,000 shares of
stock, consisting of 90,000,000 shares of common stock, $0.01 par value per share (“Common Stock”),
and 10,000,000 shares of preferred stock, $0.01 par value per share (“Preferred Stock”), of which
583,000 shares are designated as Participating Preferred Stock, par value $0.01 per share
(“Participating Preferred Stock”). The aggregate par value of all

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authorized shares of stock
having par value is $1,000,000. If shares of one class of stock are classified or reclassified
into shares of another class of stock pursuant to Section (b) of this Article SIXTH, the number of
authorized shares of the former class shall be automatically decreased and the number of shares of
the latter class shall be automatically increased, in each case by the number of shares so
classified or reclassified, so that the aggregate number of shares of stock of all classes that the
Corporation has authority to issue shall not be more than the total number of shares of stock set
forth in the first sentence of this paragraph.

          (b) Classification and Reclassification of Stock.

               (1) The Board of Directors may classify any unissued shares of Preferred Stock and reclassify
any previously classified but unissued shares of Common Stock or Preferred Stock of any series from
time to time, in one or more classes or series of stock.

               (2) Prior to issuance of classified or reclassified shares of any class or series, the Board
of Directors by resolution shall: (A) designate that class or series to distinguish it from all
other classes and series of stock of the Corporation; (B) specify the number of shares to be
included in the class or series; (C) set or change, subject to the provisions of Article NINTH and
subject to the express terms of any class or series of stock of the Corporation outstanding at the
time, the preferences, conversion or other rights, voting powers, restrictions, limitations as to
dividends or other distributions, qualifications and terms and conditions of redemption for each
class or series; and (D) cause the Corporation to file articles supplementary with the State
Department of Assessments and Taxation of Maryland (“SDAT”). Any of the terms of any class or
series of stock set or changed pursuant to clause (C) of this subsection (b)(2) may be made
dependent upon facts or events ascertainable outside this charter of the Corporation (the
“Charter”) (including determinations by the Board of Directors or other facts or

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events within the
control of the Corporation) and may vary among holders thereof, provided that the manner in which
such facts, events or variations shall operate upon the terms of such class or series of stock is
clearly and expressly set forth in the articles supplementary or other Charter document.

          (c) The following is a description of the preferences, conversion and other rights, voting
powers, restrictions, limitations as to dividends, qualifications and terms and conditions of
redemption of the Common Stock of the Corporation:

               (1) Each share of Common Stock shall have one vote, and, except as otherwise provided in
respect of any class of stock hereafter classified or reclassified, the exclusive voting power for
all purposes shall be vested in the holders of the Common Stock. Shares of Common Stock shall not
have cumulative voting rights.

               (2) Subject to the provisions of law and any preferences of any class of stock hereafter
classified or reclassified, dividends, or other distributions, including dividends or other
distributions payable in shares of another class of the Corporation’s stock, may be paid ratably on
the Common Stock at such time and in such amounts as the Board of Directors may deem advisable.

               (3) In the event of any liquidation, dissolution or winding up of the Corporation, whether
voluntary or involuntary, the holders of the Common Stock shall be entitled, together with the
holders of any other class of stock hereafter classified or reclassified not having a preference on
distributions in the liquidation, dissolution or winding up of the Corporation, to share ratably in
the net assets of the Corporation remaining, after payment or provision for payment of the debts
and other liabilities of the Corporation and the amount to

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which the holders of any class of stock
hereafter classified or reclassified having a preference on distributions in the liquidation,
dissolution or winding up of the Corporation shall be entitled.

          (d) Participating Preferred Stock. Subject in all cases to the provisions of Article
NINTH, the preferences, conversion or other rights, voting powers, restrictions, limitations as to
dividends, qualifications and terms and conditions of redemption of the Participating Preferred
Stock are:

               (1) The designation of the Participating Preferred Stock is “Participating Preferred Stock.”
Each share of Participating Preferred Stock shall be identical in all respects with the other
shares of Participating Preferred Stock except as to the dates from and after which dividends
thereon shall be cumulative.

               (2) The number of shares of Participating Preferred Stock shall initially be 583,000, which
number may from time to time be increased or decreased (but not below the number then outstanding)
by the Board of Directors. Shares of Participating Preferred Stock acquired by the Corporation
shall constitute authorized but unissued shares of Preferred Stock without designation as to
series. Shares of Participating Preferred Stock may be issued in fractional shares, which
fractional shares shall entitle the holder, in proportion to such holder’s fractional share, to all
rights of a holder of a whole share of Participating Preferred Stock.

               (3) The holders of full or fractional shares of Participating Preferred Stock shall be
entitled to receive, when and as authorized by the Board of Directors and declared by the
Corporation, but only out of funds legally available therefor, dividends, (A) on each date that
dividends or other distributions (other than dividends or distributions payable in Common Stock of
the Corporation) are payable on or in respect of Common Stock comprising part of the Reference
Package (as defined below), in an amount per whole share of Participating Preferred

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Stock equal to
the aggregate amount of dividends or other distributions (other than dividends or distributions
payable in Common Stock of the Corporation) that would be payable on such date to a holder of the
Reference Package and (B) on the last day of March, June, September and December in each year, in
an amount per whole share of Participating Preferred Stock equal to the excess (if any) of $425.00
(the “Base Dividend Amount”) over the aggregate dividends paid per whole share of Participating
Preferred Stock during the three month period ending on such last day. Each such dividend shall be
paid to the holders of record of shares of Participating Preferred Stock on the date, not exceeding
sixty days preceding such dividend or distribution payment date, fixed for the purpose by the Board
of Directors in advance of payment of each particular dividend or distribution. Dividends on each
full and each fractional share of Participating Preferred Stock shall be cumulative from the date
such full or fractional share is originally issued; provided that any such full or fractional share
originally issued after a dividend record date and on or prior to the dividend payment date to
which such record date relates shall not be entitled to receive the dividend payable on such
dividend payment date or any amount in respect of the period from such original issuance to such
dividend payment date.

          The term “Reference Package” shall mean 10,000 shares of Common Stock.

          Holders of shares of Participating Preferred Stock shall not be entitled to any dividends,
whether payable in cash, property or stock, in excess of full cumulative dividends, as herein
provided on Participating Preferred Stock.

          So long as any shares of Participating Preferred Stock are outstanding, no dividend (other
than a dividend in Common Stock or in any other stock ranking junior to the Participating Preferred
Stock as to dividends and upon liquidation) shall be declared or paid or set aside for payment or
other distribution declared or made upon the Common Stock or upon

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any other stock ranking junior to
the Participating Preferred Stock as to dividends or upon liquidation, nor shall any Common Stock
nor any other stock of the Corporation ranking junior to or on a parity with the Participating
Preferred Stock as to dividends or upon liquidation be redeemed, purchased or otherwise acquired
for any consideration (or any moneys be paid to or made available for a sinking fund for the
redemption of any shares of any such stock) by the Corporation (except by conversion into or
exchange for stock of the Corporation ranking junior to the Participating Preferred Stock as to
dividends and upon liquidation), unless, in each case, the full cumulative dividends (including the
dividend to be due upon payment of such dividend, distribution, redemption, purchase or other
acquisition) on all outstanding shares of Participating Preferred Stock shall have been, or shall
contemporaneously be, paid.

               (4) In the event of any merger, consolidation, reclassification or other transaction in which
the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or
any other property, then in any such case the shares of Participating Preferred Stock shall at the
same time be similarly exchanged or changed in an amount per whole share equal to the aggregate
amount of stock, securities, cash and/or any other property (payable in kind), as the case may be,
that a holder of the Reference Package would be entitled to receive as a result of such
transaction.

               (5) In the event of any liquidation, dissolution or winding up of the affairs of the
Corporation, whether voluntary or involuntary, the holders of full and fractional shares of
Participating Preferred Stock shall be entitled, before any distribution or payment is made on any
date to the holders of the Common Stock or any other stock of the Corporation ranking junior to the
Participating Preferred Stock upon liquidation, to be paid in full an amount per whole share of
Participating Preferred Stock equal to the greater of (A) $170,000.00 (the

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“Base Liquidation
Amount”) or (B) the aggregate amount distributed or to be distributed prior to such date in
connection with such liquidation, dissolution or winding up to a holder of the Reference Package
(such greater amount being hereinafter referred to as the “Liquidation Preference”), together with
accrued dividends to such distribution or payment date, whether or not earned or declared. If such
payment shall have been made in full to all holders of shares of Participating Preferred Stock, the
holders of shares of Participating Preferred Stock as such shall have no right or claim to any of
the remaining assets of the Corporation.

          In the event the assets of the Corporation available for distribution to the holders of shares
of Participating Preferred Stock upon any liquidation, dissolution or winding up of the
Corporation, whether voluntary or involuntary, shall be insufficient to pay in full all amounts to
which such holders are entitled pursuant to the first paragraph of this subparagraph (d)(5), no
such distribution shall be made on account of any shares of any other class or series of Preferred
Stock ranking on a parity with the shares of Participating Preferred Stock upon such liquidation,
dissolution or winding up unless proportionate distributive amounts shall be paid on account of the
shares of Participating Preferred Stock, ratably in proportion to the full distributable amounts
for which holders of all such parity shares are respectively entitled upon such liquidation,
dissolution or winding up.

          Upon the liquidation, dissolution or winding up of the Corporation, the holders of shares of
Participating Preferred Stock then outstanding shall be entitled to be paid out of assets of the
Corporation available for distribution to its stockholders all amounts to which such holders are
entitled pursuant to the first paragraph of this subparagraph (d)(5) before any payment shall be
made to the holders of Common Stock or any other stock of the Corporation ranking junior upon
liquidation to the Participating Preferred Stock.

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          For the purposes of this subparagraph (d)(5), the consolidation or merger of, or binding share
exchange by, the Corporation with any other corporation shall not be deemed to constitute a
liquidation, dissolution or winding up of the Corporation.

               (6) The shares of Participating Preferred Stock shall not be redeemable.

               (7) In addition to any other vote or consent of stockholders required by law or by the
Charter, each whole share of Participating Preferred Stock shall, on any matter, vote as a class
with any other stock comprising part of the Reference Package and voting on such matter and shall
have the number of votes thereon that a holder of the Reference Package would have.

               (8) In the event the Corporation shall, at any time or from time to time (other than in
connection with the merger of Walter Investment Management LLC, a Delaware limited liability
company (“Spinco”), with and into the Corporation), (A) declare or pay a dividend on any shares of
Common Stock payable in shares of Common Stock, (B) subdivide any shares of Common Stock or (C)
combine any Common Stock into a smaller number of shares, then and in each such case (X) the
Reference Package after such event shall be the number of shares of Common Stock that a holder of
the Reference Package immediately prior to such event would hold thereafter as a result thereof and
(Y) the Base Dividend Amount and the Base Liquidation Amount shall be similarly adjusted to reflect
such dividend, subdivision or combination of shares.

          (e) Charter and By-Laws. The rights of all stockholders and the terms of all stock
are subject to the provisions of the Charter and the By-Laws. The Board of Directors of the
Corporation shall have the exclusive power to make, alter, amend or repeal the By-Laws.

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ARTICLE SEVENTH

          (a) The business and affairs of the Corporation shall be managed under the direction of the
Board of Directors. The number of directors of the Corporation may be increased or decreased by at
least a majority of the entire Board of Directors pursuant to the By-Laws of the Corporation, but
shall never be less than the minimum number permitted by the General Laws of the State of Maryland
now or hereafter in force.

          (b) Subject to the rights of the holders of any class of Preferred Stock then outstanding,
newly created directorships resulting from any increase in the authorized number of directors shall
be filled by a vote of the stockholders or a majority of the entire Board of Directors, and any
vacancies on the Board of Directors resulting from death, resignation, retirement,
disqualification, removal from office, or other cause shall be filled by a vote of the stockholders
or a majority of the directors then in office. No decrease in the number of directors constituting
the Board of Directors shall affect the tenure of office of any director.

          (c) Whenever the holders of any one or more series of Preferred Stock of the Corporation shall
have the right, voting separately as a class, to elect one or more directors of the Corporation,
the Board of Directors shall consist of said directors so elected in addition to the number of
directors fixed as provided in paragraph (a) of this Article SEVENTH or in the By-Laws.
Notwithstanding the foregoing, and except as otherwise may be required by law, whenever the holders
of any one or more series of Preferred Stock of the Corporation shall have the right, voting
separately as a class, to elect one or more directors of the Corporation, the terms of the director
or directors elected by such holders shall expire at the next succeeding annual meeting of
stockholders.

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          (d) Subject to the rights of the holders of any class separately entitled to elect one or more
directors, any director, or the entire Board of Directors, may be removed from office at any time,
but only for cause and then only by the affirmative vote of the holders of at least a majority of
the combined voting power of all classes of shares of capital stock entitled to vote in the
election for directors voting together as a single class.

          (e) The directors of the Corporation shall be divided equally (or as nearly as possible) into
three classes, Class I, Class II and Class III.

          (f) (1) The term of office of Class I shall be until the 1998 annual meeting of stockholders
and until their successors shall be elected and have qualified and thereafter shall be for three
years and until their successors shall be elected and have qualified; (2) the term of office of
Class II shall be until the 1999 annual meeting of stockholders and until their successors shall be
elected and have qualified and thereafter shall be for three years and until their successors shall
be elected and have qualified; and (3) the term of office of Class III shall be until the 2000
annual meeting of stockholders and until their successors shall be elected and have qualified and
thereafter shall be for three years and until their successors shall be elected and have qualified.

ARTICLE EIGHTH

POWERS OF THE CORPORATION, DIRECTORS AND STOCKHOLDERS;

AMENDMENTS

          (a) Powers of the Corporation, Directors and Stockholders.

               (1) Authorization by Board of Stock Issuance. The Board of Directors may authorize
the issuance from time to time of shares of stock of the Corporation of any class or series,
whether now or hereafter authorized, or securities or rights convertible into shares of its

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stock of any class or series, whether now or hereafter authorized, for such consideration as the
Board of Directors may deem advisable (or without consideration in the case of a stock split or
stock dividend), subject to such restrictions or limitations, if any, as may be set forth in the
Charter or the By-Laws.

               (2) Preemptive and Appraisal Rights. Except as may be provided by the Board of
Directors in setting the terms of classified or reclassified shares of stock pursuant to Article
SIXTH Section (b) or as may otherwise be provided by a contract approved by the Board of Directors,
no holder of shares of stock of the Corporation shall, as such holder, have any preemptive right to
purchase or subscribe for any additional shares of stock of the Corporation or any other security
of the Corporation which it may issue or sell. Holders of shares of stock shall not be entitled to
exercise any rights of an objecting stockholder provided for under Title 3, Subtitle 2 of the
Maryland General Corporation Law (“MGCL”) or any successor statute unless the Board of Directors,
upon the affirmative vote of a majority of the Board of Directors, shall determine that such rights
apply, with respect to all or any classes or series of stock, to one or more transactions occurring
after the date of such determination in connection with which holders of such shares would
otherwise be entitled to exercise such rights.

               (3) Determinations by Board. The determination as to any of the following matters,
made in good faith by or pursuant to the direction of the Board of Directors consistent with the
Charter, shall be final and conclusive and shall be binding upon the Corporation and every holder
of shares of its stock: the amount of the net income of the Corporation for any period and the
amount of assets at any time legally available for the payment of dividends, redemption of its
stock or the payment of other distributions on its stock; the amount of paid-in surplus, net
assets, other surplus, annual or other cash flow, funds from

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operations, net profit, net assets in excess of capital, undivided profits or excess of profits
over losses on sales of assets; the amount, purpose, time of creation, increase or decrease,
alteration or cancellation of any reserves or charges and the propriety thereof (whether or not any
obligation or liability for which such reserves or charges shall have been created shall have been
paid or discharged); any interpretation of the terms, preferences, conversion or other rights,
voting powers or rights, restrictions, limitations as to dividends or distributions, qualifications
or terms or conditions of redemption of any class or series of stock of the Corporation; the fair
value, or any sale, bid or asked price to be applied in determining the fair value, of any asset
owned or held by the Corporation or of any shares of stock of the Corporation; the number of shares
of stock of any class of the Corporation; any matter relating to the acquisition, holding and
disposition of any assets by the Corporation; or any other matter relating to the business and
affairs of the Corporation or required or permitted by applicable law, the Charter or By-Laws or
otherwise to be determined by the Board of Directors.

               (4) The Corporation shall provide any indemnification permitted by the laws of Maryland and
shall indemnify directors, officers, agents and employees as follows: (A) the Corporation shall
indemnify its directors and officers, whether serving the Corporation or at its request any other
entity, to the full extent required or permitted by the General Laws of the State of Maryland now
or hereafter in force, including the advance of expenses under the procedures and to the full
extent permitted by law and (B) the Corporation shall indemnify other employees and agents, whether
serving the Corporation or at its request any other entity, to such extent as shall be authorized
by the Board of Directors or the Corporation’s By-Laws and be permitted by law. The foregoing
rights of indemnification shall not be exclusive of any other rights to which those seeking
indemnification may be entitled. The Board of Directors may take

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such action as is necessary to carry out these indemnification provisions and is expressly
empowered to adopt, approve and amend from time to time such by-laws, resolutions or contracts
implementing such provisions or such further indemnification arrangements as may be permitted by
law. No amendment of the Charter of the Corporation or repeal of any of its provisions shall limit
or eliminate the right to indemnification provided hereunder with respect to acts or omissions
occurring prior to such amendment or repeal or shall limit or eliminate the rights granted under
indemnification agreements entered into by the Corporation and its directors, officers, agents and
employees.

               (5) To the fullest extent permitted by Maryland statutory or decisional law, as amended or
interpreted, no director or officer of the Corporation shall be personally liable to the
Corporation or its stockholders for money damages. No amendment of the Charter of the Corporation
or repeal of any of its provisions shall limit or eliminate the benefits provided to directors and
officers under this provision with respect to any act or omission which occurred prior to such
amendment or repeal.

               (6) For any stockholder proposal to be presented in connection with an annual meeting of
stockholders of the Corporation, including any proposal relating to the nomination of a director to
be elected to the Board of Directors of the Corporation, the stockholders must have given timely
written notice thereof in writing to the Secretary of the Corporation in the manner and containing
the information required by the By-Laws. Stockholder proposals to be presented in connection with
a special meeting of stockholders will be presented by the Corporation only to the extent required
by Section 2-502 of the Corporations and Associations Article of the Annotated Code of Maryland.

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               (7) Notwithstanding any provision of law requiring the authorization of any action by a
greater proportion than a majority of the total number of shares of all classes of capital stock or
of the total number of shares of any class of capital stock, such action shall be valid and
effective if authorized by the affirmative vote of the holders of a majority of the total number of
shares of all classes outstanding and entitled to vote thereon, except as otherwise provided in the
Charter.

               (8) Any action required or permitted to be taken at any meeting of the stockholders may be
taken without a meeting by consent, in writing or by electronic transmission, in any manner
permitted by the MGCL and set forth in the By-Laws.

          (b) The Corporation reserves the right to amend, alter, change or repeal any provision
contained in the Charter, including any amendments changing the terms or contract rights, as
expressly set forth in the Charter, of any of its outstanding stock by classification,
reclassification or otherwise, by a majority of the directors’ adopting a resolution setting forth
the proposed change, declaring its advisability, and either calling a special meeting of the
stockholders entitled to vote on the proposed change, or directing the proposed change to be
considered at the next annual stockholders meeting. Unless otherwise provided herein, the proposed
change will be effective only if it is adopted upon the affirmative vote of the holders of not less
than a majority of the aggregate votes entitled to be cast thereon (considered for this purpose as
a single class); provided however, that any amendment to, repeal of or adoption of any provision
inconsistent with subparagraphs (a)(4), (a)(5), (a)(6), (a)(7) or this paragraph (b) of this
Article EIGHTH, paragraph (c) of Article SIXTH or Article SEVENTH will be effective only if it is
adopted upon the affirmative vote of not less than two-thirds of the aggregate votes entitled to be
cast thereon (considered for this purpose as a single class). In addition, no term or

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provisions of the Charter may be added, amended or repealed in any respect that would, in the
determination of the Board of Directors, cause the Corporation not to qualify as a REIT under the
Code unless in each such case, such action is approved (in addition to any other vote, approval,
authorization or advice (including that of the Board of Directors) that may otherwise be required)
by the affirmative vote of the holders of not less than two-thirds (66-2/3%) of all the votes
entitled to be cast on the matter.

ARTICLE NINTH

RESTRICTION ON TRANSFER AND OWNERSHIP OF SHARES

          (a) Definitions. For the purpose of this Article NINTH, the following terms shall
have the following meanings:

          Aggregate Stock Ownership Limit. The term “Aggregate Stock Ownership Limit” shall
mean not more than 9.8 percent in value of the aggregate of the outstanding shares of Capital
Stock.

          AMEX. The term “AMEX” shall mean the American Stock Exchange.

          Beneficial Ownership. The term “Beneficial Ownership” shall mean ownership of Capital
Stock by a Person, whether the interest in the shares of Capital Stock is held directly or
indirectly (including by a nominee), and shall include interests that would be treated as owned
through the application of Section 544 of the Code, as modified by Section 856(h)(1)(B) of the
Code. The terms “Beneficial Owner,” “Beneficially Owns” and “Beneficially Owned” shall have the
correlative meanings.

          Business Day. The term “Business Day” shall mean any day, other than a Saturday or
Sunday, that is neither a legal holiday nor a day on which banking institutions in New York City
are authorized or required by law, regulation or executive order to close.

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          Capital Stock. The term “Capital Stock” shall mean all classes or series of stock of
the Corporation, including, without limitation, Common Stock and Preferred Stock.

          Charitable Beneficiary. The term “Charitable Beneficiary” shall mean one or more
beneficiaries of the Trust as determined pursuant to subparagraph (c)(6) of this Article NINTH,
provided that each such organization must be described in Section 501(c)(3) of the Code and
contributions to each such organization must be eligible for deduction under each of Sections
170(b)(1)(A), 2055 and 2522 of the Code.

          Common Stock Ownership Limit. The term “Common Stock Ownership Limit” shall mean not
more than 9.8 percent (in value or in number of shares, whichever is more restrictive) of the
aggregate of the outstanding shares of Common Stock of the Corporation.

          Constructive Ownership. The term “Constructive Ownership” shall mean ownership of
Capital Stock by a Person, whether the interest in the shares of Capital Stock is held directly or
indirectly (including by a nominee), and shall include interests that would be treated as owned
through the application of Section 318(a) of the Code, as modified by Section 856(d)(5) of the
Code. The terms “Constructive Owner,” “Constructively Owns” and “Constructively Owned” shall have
the correlative meanings.

          Excepted Holder. The term “Excepted Holder” shall mean a stockholder of the
Corporation for whom an Excepted Holder Limit is created by the Charter or by the Board of
Directors pursuant to subparagraph (b)(7) of this Article NINTH.

          Excepted Holder Limit. The term “Excepted Holder Limit” shall mean, provided that the
affected Excepted Holder agrees to comply with the requirements established by the Board of
Directors pursuant to subparagraph (b)(7) of this Article NINTH and subject to

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adjustment pursuant to subparagraph (b)(8) of this Article NINTH, the percentage limit established
by the Board of Directors pursuant to subparagraph (b)(7) of this Article NINTH.

          Exemption Period. The term “Exemption Period” shall mean the period beginning as of
the time immediately prior to the closing of the transactions contemplated by the Exchange
Agreement by and among the Corporation, Amster Trading Company, an Ohio corporation (“Amster”), and
Ramat Securities, LTD, an Ohio limited liability company (“Ramat”), dated as of September 30, 2008,
as amended, as in effect as of the time the Articles of Amendment and Restatement containing this
Article NINTH are accepted for record by the SDAT, and ending as of the earlier of the close of
business on June 30, 2009 and the time immediately after the effective time of the merger
contemplated by the Second Amended and Restated Agreement and Plan of Merger by and among the
Corporation, Walter Industries, Inc., a Delaware corporation, JWH Holding Company, LLC, a Delaware
limited liability company, and Spinco, dated as of February ___, 2009, as in effect as of the time
the Articles of Amendment and Restatement containing this Article NINTH are accepted for record by
the SDAT.

          Initial Date. The term “Initial Date” shall mean the date upon which the Articles of
Amendment and Restatement containing this Article NINTH are accepted for record by the SDAT.

          Market Price. The term “Market Price” on any date shall mean, with respect to any
class or series of outstanding shares of Capital Stock, the Closing Price for such Capital Stock on
such date. The “Closing Price” on any date shall mean the last sale price for such Capital Stock,
regular way, or, in case no such sale takes place on such day, the average of the closing bid and
asked prices, regular way, for such Capital Stock, in either case as reported in the principal
consolidated transaction reporting system with respect to securities listed or admitted to

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trading on the AMEX or, if such Capital Stock is not listed or admitted to trading on the AMEX, as
reported on the principal consolidated transaction reporting system with respect to securities
listed on the principal national securities exchange on which such Capital Stock is listed or
admitted to trading or, if such Capital Stock is not listed or admitted to trading on any national
securities exchange, the last quoted price, or, if not so quoted, the average of the high bid and
low asked prices in the over-the-counter market, as reported by the National Association of
Securities Dealers, Inc. Automated Quotation System or, if such system is no longer in use, the
principal other automated quotation system that may then be in use or, if such Capital Stock is not
quoted by any such organization, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in such Capital Stock selected by the Board of Directors
of the Corporation or, in the event that no trading price is available for such Capital Stock, the
fair market value of the Capital Stock, as determined in good faith by the Board of Directors.

          Person. The term “Person” shall mean an individual, corporation, partnership, estate,
trust (including a trust qualified under Sections 401(a) or 501(c)(17) of the Code), a portion of a
trust permanently set aside for or to be used exclusively for the purposes described in Section
642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the
Code, joint stock company or other entity and also includes a group as that term is used for
purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, and a group to
which an Excepted Holder Limit applies.

          Prohibited Owner. The term “Prohibited Owner” shall mean, with respect to any
purported Transfer, any Person who, but for the provisions of subparagraph (b)(1) of this Article
NINTH, would Beneficially Own or Constructively Own shares of Capital Stock, and if

19

 

appropriate in the context, shall also mean any Person who would have been the record owner of the
shares that the Prohibited Owner would have so owned.

          Restriction Termination Date. The term “Restriction Termination Date” shall mean the
first day after the Initial Date on which the Board of Directors determines pursuant to Article
FIFTH of the Charter that it is no longer in the best interests of the Corporation to attempt to,
or continue to, qualify as a REIT or that compliance with the restrictions and limitations on
Beneficial Ownership, Constructive Ownership and Transfers of shares of Capital Stock set forth
herein is no longer required in order for the Corporation to qualify as a REIT.

          Transfer. The term “Transfer” shall mean any issuance, sale, transfer, gift,
assignment, devise or other disposition, as well as any other event that causes any Person to
acquire Beneficial Ownership or Constructive Ownership, or any agreement to take any such actions
or cause any such events, of Capital Stock or the right to vote or receive dividends on Capital
Stock, including (1) the granting or exercise of any option (or any disposition of any option), (2)
any disposition of any securities or rights convertible into or exchangeable for Capital Stock or
any interest in Capital Stock or any exercise of any such conversion or exchange right and (3)
Transfers of interests in other entities that result in changes in Beneficial or Constructive
Ownership of Capital Stock; in each case, whether voluntary or involuntary, whether owned of
record, Constructively Owned or Beneficially Owned and whether by operation of law or otherwise.
The terms “Transferring” and “Transferred” shall have the correlative meanings.

          Trust. The term “Trust” shall mean any trust provided for in subparagraph (c)(1) of
this Article NINTH.

20

 

          Trustee. The term “Trustee” shall mean the Person unaffiliated with the Corporation
and a Prohibited Owner, that is appointed by the Corporation to serve as trustee of the Trust.

          (b) Capital Stock.

               (1) Ownership Limitations. During the period commencing on the Initial Date and prior
to the Restriction Termination Date, but subject to paragraph (b)(7) of Article NINTH:

                    (i) Basic Restrictions.

                         (A) (1) No Person, other than an Excepted Holder, shall Beneficially Own or Constructively
Own shares of Capital Stock in excess of the Aggregate Stock Ownership Limit, (2) no Person, other
than an Excepted Holder, shall Beneficially Own or Constructively Own shares of Common Stock in
excess of the Common Stock Ownership Limit and (3) no Excepted Holder shall Beneficially Own or
Constructively Own shares of Capital Stock in excess of the Excepted Holder Limit for such Excepted
Holder.

                         (B) No Person shall Beneficially or Constructively Own shares of Capital Stock to the extent
that such Beneficial or Constructive Ownership of Capital Stock would result in the Corporation
being “closely held” within the meaning of Section 856(h) of the Code (without regard to whether
the ownership interest is held during the last half of a taxable year), or otherwise failing to
qualify as a REIT (including, but not limited to, Beneficial or Constructive Ownership that would
result in the Corporation owning (actually or Constructively) an interest in a tenant that is
described in Section 856(d)(2)(B) of the Code if the income derived by the Corporation from such
tenant would cause the Corporation to fail to satisfy any of the gross income requirements of
Section 856(c) of the Code).

21

 

                         (C) Any Transfer of shares of Capital Stock that, if effective, would result in the Capital
Stock being beneficially owned by less than 100 Persons (determined under the principles of Section
856(a)(5) of the Code) shall be void ab initio, and the intended transferee shall
acquire no rights in such shares of Capital Stock.

                    (ii) Transfer in Trust. If any Transfer of shares of Capital Stock occurs which, if
effective, would result in any Person Beneficially Owning or Constructively Owning shares of
Capital Stock in violation of subparagraph (b)(1)(i)(A) or (B) of this Article NINTH,

                         (A) then that number of shares of the Capital Stock the Beneficial or Constructive Ownership
of which otherwise would cause such Person to violate subparagraph (b)(1)(i)(A) or (B) of this
Article NINTH (rounded up to the nearest whole share) shall be automatically transferred to a
Trust for the benefit of a Charitable Beneficiary, as described in Article NINTH (c), effective as
of the close of business on the Business Day prior to the date of such Transfer, and such Person
shall acquire no rights in such shares; or

                         (B) if the transfer to the Trust described in clause (i) of this sentence would not be
effective for any reason to prevent the violation of subparagraph (b)(1)(i)(A) or (B) Article
NINTH, then the Transfer of that number of shares of Capital Stock that otherwise would cause any
Person to violate subparagraph (b)(1)(i)(A) or (B) of this Article NINTH shall be void ab
initio, and the intended transferee shall acquire no rights in such shares of Capital
Stock.

               (2) Remedies for Breach. If the Board of Directors or any duly authorized committee
thereof shall at any time determine in good faith that a Transfer or other event has taken place
that results in a violation of subparagraph (b)(1) of this Article NINTH or

22

 

that a Person intends to acquire or has attempted to acquire Beneficial or Constructive Ownership
of any shares of Capital Stock in violation of subparagraph (b)(1) of this Article NINTH (whether
or not such violation is intended), the Board of Directors or a committee thereof shall take such
action as it deems advisable to refuse to give effect to or to prevent such Transfer or other
event, including, without limitation, causing the Corporation to redeem shares, refusing to give
effect to such Transfer on the books of the Corporation or instituting proceedings to enjoin such
Transfer or other event; provided, however, that any Transfer or attempted Transfer
or other event in violation of Article NINTH (b)(1) shall automatically result in the transfer to
the Trust described above, and, where applicable, such Transfer (or other event) shall be void
ab initio as provided above irrespective of any action (or non-action) by the Board
of Directors or a committee thereof.

               (3) Notice of Restricted Transfer. Any Person who acquires or attempts or intends to
acquire Beneficial Ownership or Constructive Ownership of shares of Capital Stock that will or may
violate Article NINTH (b)(1)(i) or any Person who would have owned shares of Capital Stock that
resulted in a transfer to the Trust pursuant to the provisions of Article NINTH (b)(1)(ii) shall
immediately give written notice to the Corporation of such event or, in the case of such a proposed
or attempted transaction, give at least 15 days prior written notice, and shall provide to the
Corporation such other information as the Corporation may request in order to determine the effect,
if any, of such Transfer on the Corporation’s status as a REIT.

               (4) Owners Required To Provide Information. From the Initial Date and prior to the
Restriction Termination Date:

23

 

                    (i) every owner of five percent or more (or such lower percentage as required by the Code or
the Treasury Regulations promulgated thereunder) of the outstanding shares of Capital Stock, within
30 days after the end of each taxable year, shall give written notice to the Corporation stating
the name and address of such owner, the number of shares of Capital Stock and other shares of the
Capital Stock Beneficially Owned and a description of the manner in which such shares are held.
Each such owner shall provide to the Corporation such additional information as the Corporation may
request in order to determine the effect, if any, of such Beneficial Ownership on the Corporation’s
status as a REIT and to ensure compliance with the Aggregate Stock Ownership Limit; and

                    (ii) each Person who is a Beneficial or Constructive Owner of Capital Stock and each Person
(including the stockholder of record) who is holding Capital Stock for a Beneficial or Constructive
Owner shall provide to the Corporation such information as the Corporation may request, in good
faith, in order to determine the Corporation’s status as a REIT and to comply with requirements of
any taxing authority or governmental authority or to determine such compliance.

               (5) Remedies Not Limited. Subject to Article FIFTH, nothing contained in paragraph
(b) of this Article NINTH shall limit the authority of the Board of Directors to take such other
action as it deems necessary or advisable to protect the Corporation and the interests of its
stockholders in preserving the Corporation’s status as a REIT.

               (6) Ambiguity. In the case of an ambiguity in the application of any of the
provisions of this Article NINTH (b), (c), or any definition contained in (a), the Board of
Directors shall have the power to determine the application of the provisions of this Article NINTH
(b) or (c) or any such definition with respect to any situation based on the facts known to

24

 

it. In the event Article NINTH (b) or (c) requires an action by the Board of Directors and the
Charter fails to provide specific guidance with respect to such action, the Board of Directors
shall have the power to determine the action to be taken so long as such action is not contrary to
the provisions of Article NINTH (a), (b) or (c). Absent a decision to the contrary by the Board of
Directors (which the Board may make in its sole and absolute discretion), if a Person would have
(but for the remedies set forth in Article NINTH (b)(2)) acquired Beneficial or Constructive
Ownership of Stock in violation of Article NINTH (b)(1), such remedies (as applicable) shall apply
first to the shares of Stock which, but for such remedies, would have been Beneficially Owned or
Constructively Owned (but not actually owned) by such Person, pro rata among the Persons who
actually own such shares of Stock based upon the relative number of the shares of Stock held by
each such Person.

               (7) Exceptions.

                    (i) Subject to Article NINTH (b)(1)(i)(B), the Board of Directors, in its sole discretion, may
exempt (prospectively or retroactively) a Person from the Aggregate Stock Ownership Limit and the
Common Stock Ownership Limit, as the case may be, and may establish or increase an Excepted Holder
Limit for such Person if:

                         (A) the Board of Directors obtains such representations and undertakings from such Person as
are reasonably necessary to ascertain that no individual’s Beneficial or Constructive Ownership of
such shares of Capital Stock will violate Article NINTH (b)(1)(i)(B);

                         (B) such Person does not and represents that it will not own, actually or Constructively, an
interest in a tenant of the Corporation (or a tenant of any entity owned or controlled by the
Corporation) that would cause the Corporation to own, actually

25

 

or Constructively, more than a 9.9% interest (as set forth in Section 856(d)(2)(B) of the Code) in
such tenant and the Board of Directors obtains such representations and undertakings from such
Person as are reasonably necessary to ascertain this fact (for this purpose, a tenant from whom the
Corporation (or an entity owned or controlled by the Corporation) derives (and is expected to
continue to derive) a sufficiently small amount of revenue such that, in the opinion of the Board
of Directors, rent from such tenant would not adversely affect the Corporation’s ability to qualify
as a REIT shall not be treated as a tenant of the Corporation); and

                         (C) such Person agrees that any violation or attempted violation of such representations or
undertakings (or other action which is contrary to the restrictions contained in Article NINTH
(b)(1) through (b)(6)) will result in such shares of Capital Stock being automatically transferred
to a Trust in accordance with Article NINTH (b)(1)(ii) and (c).

                    (ii) Prior to granting any exception pursuant to Article NINTH (b)(7)(i), the Board of
Directors may require a ruling from the Internal Revenue Service, or an opinion of counsel, in
either case in form and substance satisfactory to the Board of Directors in its sole discretion, as
it may deem necessary or advisable in order to determine or ensure the Corporation’s status as a
REIT. Notwithstanding the receipt of any ruling or opinion, the Board of Directors may impose such
conditions or restrictions as it deems appropriate in connection with granting such exception.

                    (iii) Subject to Article NINTH (b)(1)(i)(B), an underwriter which participates in a public
offering or a private placement of Capital Stock (or securities convertible into or exchangeable
for Capital Stock) may Beneficially Own or Constructively Own shares of Capital Stock (or
securities convertible into or exchangeable for Capital Stock) in

26

 

excess of the Aggregate Stock Ownership Limit, the Common Stock Ownership Limit, or both such
limits, but only to the extent necessary to facilitate such public offering or private placement.

                    (iv) The Board of Directors may only reduce the Excepted Holder Limit for an Excepted Holder:
(A) with the written consent of such Excepted Holder at any time or (B) pursuant to the terms and
conditions of the agreements and undertakings entered into with such Excepted Holder in connection
with the establishment of the Excepted Holder Limit for that Excepted Holder. No Excepted Holder
Limit shall be reduced to a percentage that is less than the Common Stock Ownership Limit.

               (8) Increase or Decrease in Aggregate Stock Ownership and Common Stock Ownership
Limits. Subject to Article NINTH (b)(2)(i)(B) and in connection with establishing an Excepted
Holder Limit or at any other time, the Board of Directors may from time to time increase or
decrease the Common Stock Ownership Limit or the Aggregate Stock Ownership Limit; provided,
however, that any decreased Common Stock Ownership Limit and/or Aggregate Stock Ownership Limit
will not be effective for any Person whose percentage ownership in Stock is in excess of such
decreased Common Stock Ownership Limit and/or Aggregate Stock Ownership Limit until such time as
such Person’s percentage of Stock equals or falls below the decreased Common Stock Ownership Limit
and/or Aggregate Stock Ownership Limit, but any further acquisition of Stock in excess of such
percentage ownership of Stock will be in violation of the Common Stock Ownership Limit and/or
Aggregate Stock Ownership Limit and, provided further, that the Board of Directors may not increase
or decrease the Common Stock Ownership Limit or the Aggregate Stock Ownership Limit if such
increase or decrease

27

 

would allow five or fewer Persons to Beneficially Own more than 49.9% in value of the outstanding
Stock.

               (9) Legend. Any certificate for shares of Capital Stock shall bear substantially the
following legend:

The shares represented by this certificate are subject to
restrictions on Beneficial and Constructive Ownership and Transfer
for the purpose, among others, of the Corporation’s maintenance of
its status as a Real Estate Investment Trust under the Internal
Revenue Code of 1986, as amended (the “Code”). Subject to certain
further restrictions and except as expressly provided in the
Corporation’s Charter, (i) no Person may Beneficially or
Constructively Own shares of the Corporation’s Common Stock in
excess of 9.8 percent (in value or number of shares) of the
outstanding shares of Common Stock of the Corporation unless such
Person is an Excepted Holder (in which case the Excepted Holder
Limit shall be applicable); (ii) no Person may Beneficially or
Constructively Own shares of Capital Stock of the Corporation in
excess of 9.8 percent of the value of the total outstanding shares
of Capital Stock of the Corporation, unless such Person is an
Excepted Holder (in which case the Excepted Holder Limit shall be
applicable); (iii) no Person may Beneficially or Constructively Own
Capital Stock that would result in the Corporation being “closely
held” under Section 856(h) of the Code or otherwise cause the
Corporation to fail to qualify as a REIT; and (iv) no Person may
Transfer shares of Capital Stock if such Transfer would result in
the Capital Stock of the Corporation being owned by fewer than 100
Persons. Any Person who Beneficially or Constructively Owns or
attempts to Beneficially or Constructively Own shares of Capital
Stock which causes or will cause a Person to Beneficially or
Constructively Own shares of Capital Stock in excess or in violation
of the above limitations must immediately notify the Corporation.
If any of the restrictions on transfer or ownership are violated,
the shares of Capital Stock represented hereby may be automatically
transferred to a Trustee of a Trust for the benefit of one or more
Charitable Beneficiaries. In addition, the Corporation may redeem
shares upon the terms and conditions specified by the Board of
Directors in its sole discretion if the Board of Directors
determines that ownership or a Transfer or other event may violate
the restrictions described above. Furthermore, upon the occurrence
of certain events, attempted Transfers in violation of the
restrictions described above may be void ab initio.
All capitalized terms in this legend have the meanings defined in
the Charter of the

28

 

Corporation, as the same may be amended from time to time, a copy of
which, including the restrictions on transfer and ownership, will be
furnished to each holder of Capital Stock of the Corporation on
request and without charge. Requests for such a copy may be
directed to the Secretary of the Corporation at its Principal
Office.

                         Instead of the foregoing legend, any certificate may state that the Corporation will furnish a
full statement about certain restrictions on transferability to a stockholder on request and
without charge.

               (c) Transfer of Capital Stock in Trust.

                    (1) Ownership in Trust. Upon any purported Transfer or other event described in
Article NINTH (b)(1)(ii) that would result in a transfer of shares of Capital Stock to a Trust,
such shares of Capital Stock shall be deemed to have been transferred to the Trustee as trustee of
a Trust for the exclusive benefit of one or more Charitable Beneficiaries. Such transfer to the
Trustee shall be deemed to be effective as of the close of business on the Business Day prior to
the purported Transfer or other event that results in the transfer to the Trust pursuant to Article
NINTH (b)(1)(ii). The Trustee shall be appointed by the Corporation and shall be a Person
unaffiliated with the Corporation and any Prohibited Owner. Each Charitable Beneficiary shall be
designated by the Corporation as provided in Article NINTH (c)(6).

                    (2) Status of Shares Held by the Trustee. Shares of Capital Stock held by the Trustee
shall be issued and outstanding shares of Capital Stock of the Corporation. The Prohibited Owner
shall have no rights in the shares held by the Trustee. The Prohibited Owner shall not benefit
economically from ownership of any shares held in trust by the Trustee, shall have no rights to
dividends or other distributions and shall not possess any rights to vote or other rights
attributable to the shares held in the Trust.

29

 

                    (3) Dividend and Voting Rights. The Trustee shall have all voting rights and rights
to dividends or other distributions with respect to shares of Capital Stock held in the Trust,
which rights shall be exercised for the exclusive benefit of the Charitable Beneficiary. Any
dividend or other distribution paid prior to the discovery by the Corporation that the shares of
Capital Stock have been transferred to the Trustee shall be paid by the recipient of such dividend
or distribution to the Trustee upon demand and any dividend or other distribution authorized but
unpaid shall be paid when due to the Trustee. Any dividend or distribution so paid to the Trustee
shall be held in trust for the Charitable Beneficiary. The Prohibited Owner shall have no voting
rights with respect to shares held in the Trust and, subject to Maryland law, effective as of the
date that the shares of Capital Stock have been transferred to the Trustee, the Trustee shall have
the authority (at the Trustee’s sole discretion) (i) to rescind as void any vote cast by a
Prohibited Owner prior to the discovery by the Corporation that the shares of Capital Stock have
been transferred to the Trustee and (ii) to recast such vote in accordance with the desires of the
Trustee acting for the benefit of the Charitable Beneficiary; provided, however, that if the
Corporation has already taken irreversible corporate action, then the Trustee shall not have the
authority to rescind and recast such vote. Notwithstanding the provisions of this Article NINTH,
until the Corporation has received notification that shares of Capital Stock have been transferred
into a Trust, the Corporation shall be entitled to rely on its share transfer and other stockholder
records for purposes of preparing lists of stockholders entitled to vote at meetings, determining
the validity and authority of proxies and otherwise conducting votes of stockholders.

                    (4) Sale of Shares by Trustee. Within 20 days of receiving notice from the
Corporation that shares of Capital Stock have been transferred to the Trust, the Trustee of the
Trust shall sell the shares held in the Trust to a person, designated by the Trustee, whose

30

 

ownership of the shares will not violate the ownership limitations set forth in Article NINTH
(b)(1)(i). Upon such sale, the interest of the Charitable Beneficiary in the shares sold shall
terminate and the Trustee shall distribute the net proceeds of the sale to the Prohibited Owner and
to the Charitable Beneficiary as provided in this Article NINTH (c)(4). The Prohibited Owner shall
receive the lesser of (1) the price paid by the Prohibited Owner for the shares or, if the
Prohibited Owner did not give value for the shares in connection with the event causing the shares
to be held in the Trust (e.g., in the case of a gift, devise or other such transaction), the Market
Price of the shares on the day of the event causing the shares to be held in the Trust and (2) the
price per share received by the Trustee (net of any commissions and other expenses of sale) from
the sale or other disposition of the shares held in the Trust. The Trustee may reduce the amount
payable to the Prohibited Owner by the amount of dividends and distributions which have been paid
to the Prohibited Owner and are owed by the Prohibited Owner to the Trustee pursuant to Article
NINTH (c)(3). Any net sales proceeds in excess of the amount payable to the Prohibited Owner shall
be immediately paid to the Charitable Beneficiary. If, prior to the discovery by the Corporation
that shares of Capital Stock have been transferred to the Trustee, such shares are sold by a
Prohibited Owner, then (i) such shares shall be deemed to have been sold on behalf of the Trust and
(ii) to the extent that the Prohibited Owner received an amount for such shares that exceeds the
amount that such Prohibited Owner was entitled to receive pursuant to this Article NINTH (c)(4),
such excess shall be paid to the Trustee upon demand.

                    (5) Purchase Right in Stock Transferred to the Trustee. Shares of Capital Stock
transferred to the Trustee shall be deemed to have been offered for sale to the Corporation, or its
designee, at a price per share equal to the lesser of (i) the price per share in the transaction
that resulted in such transfer to the Trust (or, in the case of a devise or gift, the

31

 

Market Price at the time of such devise or gift) and (ii) the Market Price on the date the
Corporation, or its designee, accepts such offer. The Corporation may reduce the amount payable to
the Prohibited Owner by the amount of dividends and distributions which has been paid to the
Prohibited Owner and are owed by the Prohibited Owner to the Trustee pursuant to Article NINTH
(c)(3). The Corporation may pay the amount of such reduction to the Trustee for the benefit of the
Charitable Beneficiary. The Corporation shall have the right to accept such offer until the
Trustee has sold the shares held in the Trust pursuant to Article NINTH (c)(4). Upon such a sale
to the Corporation, the interest of the Charitable Beneficiary in the shares sold shall terminate
and the Trustee shall distribute the net proceeds of the sale to the Prohibited Owner.

                    (6) Designation of Charitable Beneficiaries. By written notice to the Trustee, the
Corporation shall designate one or more nonprofit organizations to be the Charitable Beneficiary of
the interest in the Trust such that the shares of Capital Stock held in the Trust would not violate
the restrictions set forth in Article NINTH (b)(1)(i) in the hands of such Charitable Beneficiary.

               (d) AMEX Transactions. Nothing in this Article NINTH shall preclude the settlement of
any transaction entered into through the facilities of the AMEX or any other national securities
exchange or automated inter-dealer quotation system. The fact that the settlement of any
transaction occurs shall not negate the effect of any other provision of this Article NINTH and any
transferee in such a transaction shall be subject to all of the provisions and limitations set
forth in this Article NINTH.

               (e) Enforcement. The Corporation is authorized specifically to seek equitable relief,
including injunctive relief, to enforce the provisions of this Article NINTH.

32

 

               (f) Non-Waiver. No delay or failure on the part of the Corporation or the Board of
Directors in exercising any right hereunder shall operate as a waiver of any right of the
Corporation or the Board of Directors, as the case may be, except to the extent specifically waived
in writing.

               (g) Limited Exception. Notwithstanding anything to the contrary herein, this Article
NINTH and the limitations on ownership and transfer of Capital Stock set forth herein (including,
without limitation, the restrictions set forth in subparagraph (b)(1) of this Article NINTH) shall
not apply to Amster or Ramat during the Exemption Period.

               THIRD: The amendment to and restatement of the charter as hereinabove set forth have
been duly advised by the Board of Directors and approved by the stockholders of the Corporation as
required by law.

               FOURTH: The current address of the principal office of the Corporation is as set forth
in Article THIRD of the foregoing amendment and restatement of the charter.

               FIFTH: The name and address of the Corporation’s current resident agent is as set
forth in Article FOURTH of the foregoing amendment and restatement of the charter.

               SIXTH: The Corporation currently has seven directors. The names of the directors
currently in office are:

                    John A. Burchett

                    Michael T. Tokarz

                    Mark J. O’Brien

                    Denmar J. Dixon

                    William J. Meurer

                    Shannon E. Smith

                    Ellyn L. Brown

33

 

               SEVENTH: The undersigned Chairman, President and Chief Executive Officer acknowledges
these Articles of Amendment and Restatement to be the corporate act of the Corporation and as to
all matters or facts required to be verified under oath, the undersigned Chairman, President and
Chief Executive Officer acknowledges that, to the best of his knowledge, information and belief,
these matters and facts are true in all material respects and that this statement is made under the
penalties for perjury.

- Signature page follows -

34

 

               IN WITNESS WHEREOF, the Corporation has caused these Articles of Amendment and Restatement to
be signed in its name and on its behalf by its Chairman, President and Chief Executive Officer and
attested to by its Assistant Secretary on this 17th day of April, 2009.

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	HANOVER CAPITAL MORTGAGE HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Paul Pedrotti

	 	 	 	By:
	 	/s/ John A. Burchett	 	 
	 

Paul Pedrotti

	 	 
	 	 	 	 

John A. Burchett
	 	 
	Assistant Secretary

	 	 	 	 	 	Chairman, President and Chief
Executive Officer	 	 

35exv10w1

Exhibit 10.1

NATIONAL DENTEX CORPORATION

INCENTIVE STOCK OPTION AGREEMENT

     INCENTIVE
STOCK OPTION AGREEMENT dated as of _______________ by and between, NATIONAL
DENTEX CORPORATION, a Massachusetts corporation (the “Company”), and _____________________, an
employee of the Company (“Employee”).

     WHEREAS, the Company desires to provide Employee with an incentive to promote the business of
the Company and its subsidiaries and to encourage Employee to continue his employment; and

     WHEREAS, to effectuate that desire the Company has determined to grant Employee an option to
purchase shares of the Company’s common stock under and pursuant to the terms and provisions of the
Company’s Amended and Restated 2001 Stock Plan (the “Plan”).

     NOW, THEREFORE, the Company and Employee agree as follows:

1. Grant of Option.

     The Company hereby grants to Employee the option to purchase ________________________
shares of the Company’s Common Stock, $.01 par value, at a price per share equal to $_________, in
the manner and subject to the conditions hereinafter provided. This option is intended to qualify
as an “incentive stock option” under the Internal Revenue Code of 1986, as amended. This option is
granted pursuant to and subject to all of the terms and conditions of the Plan and, unless the
context otherwise requires, terms used herein shall have the same meaning as in the Plan.
Determinations made in connection with this option shall be governed by the Plan, and in the event
of any inconsistency or conflict between this Agreement and the Plan, the terms of the Plan shall
govern. In particular, without affecting the generality of the foregoing, it is understood that
employment by the Company includes employment by a Related Corporation as defined in the Plan.

2. Time of Exercise.

     Employee
may exercise this option from _______________ to and including _______________, the
end of ten years from the date this Option is granted. Employee may exercise this option as to the
following number of shares on or after the following dates:

          _______________
shares on or after _______________,

          an additional
__________________ shares on or after ____________, and

          an additional
_______________
shares on or after _______________; provided, however, that in the
event of a Change of Control, as defined in the Plan, this option shall thereupon become fully
exercisable and vested.

1

 

3. Method of Exercise.

     Each exercise of this option shall be effected by giving written notice, in a form similar to
Exhibit A provided herein, of intent to exercise this option, specifying the number of
shares of stock as to which the option is being exercised, and accompanied by full payment of the
option price for the number of shares then being acquired. The optionee shall make full payment of
the exercise price of the option shares being purchased either (a) in United Stated dollars in cash
or by check, (b) at the discretion of the Committee, through delivery or withholding of shares of
Common Stock having a fair market value equal as of the date of the exercise to the cash exercise
price of the option, which have already been owned by you for more than six months, (c) at the
discretion of the Committee and consistent with applicable law, through the delivery to the Company
of a portion of the proceeds from the sale of the Common Stock acquired upon exercise of the option
equal to the cash exercise price of the option, along with an authorization to the broker or
selling agent to pay that amount to the Company, which sale shall be at the Employee’s discretion
at the time of exercise, or (d) at the discretion of the Committee, by any combination of (a), (b)
and (c) above. The determination of fair market value shall be made by the Committee, whose
determination in this regard shall be final and binding on the Company and on Employee. The
optionee shall not have the rights of a shareholder with respect to the shares covered by such
option until the date of issuance of a stock certificate of such holder for such shares. Except as
expressly provided in paragraph 14 of the Plan with respect to changes in capitalization and stock
dividends, no adjustment shall be made for dividends or similar rights for which the record date is
before the date such stock certificate is issued.

     Receipt by the Company of such notice and payment shall constitute exercise of this option or
a part hereof. The Company shall promptly deliver or cause to be delivered to Employee a
certificate or certificates for the number of shares of the Company’s Common Stock being acquired
pursuant to such exercise. Such shares shall be fully paid and nonassessable. Notwithstanding the
foregoing, the Company shall not be required to issue such shares unless a registration statement
under the Securities Act of 1933, as amended (the “Securities Act”) is in effect with respect to
such shares or the Company has received evidence satisfactory to the Company that Employee may
acquire such shares pursuant to an exemption from registration under the Securities Act. In
addition, as to any jurisdiction (other than the United States) that expressly imposes the
requirement that this option shall not be exercisable unless and until the shares of stock covered
by this option are registered or are subject to an available exemption from registration, the
exercise of this option shall, notwithstanding anything to the contrary contained herein, be deemed
conditioned upon the effectiveness of such registration or the availability of such an exemption.
Any determination in that regard by the Company shall be final and conclusive. The Company shall
not be obligated to take any affirmative action in order to cause the exercise of this option or
the issuance of shares of stock pursuant hereto to comply with any law or regulation of any
governmental authority.

4. Termination of Employment.

     This option shall, to the extent not previously exercised, expire immediately upon the
termination (voluntary or involuntary) of Employee’s employment with the Company or with a Related
Corporation; except that:

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     (a) If Employee is on military, sick leave or other bona fide leave of absence (such
as temporary employment by the federal government), Employee’s employment relationship will be
treated as continuing intact if the period of such leave does not exceed 90 days, or, if longer, so
long as Employee’s right to reemployment is guaranteed by statute; otherwise, Employee’s employment
will be deemed to have terminated on the 91st day of such leave. A bona fide leave of absence with
the written approval of the Committee shall not be considered an interruption of employment under
this Section 4(a) or paragraph 10 of the Plan.

     (b) If Employee’s employment is terminated by reason of Employee’s retirement, this option,
to the extent exercisable at retirement, may be exercised by Employee within three (3) years after
retirement, unless terminated earlier by its terms; provided, however, that if Employee dies within
such three (3) year period, this option shall thereafter be exercisable, to the extent it was
exercisable at the time of death, for a period of twelve (12) months from the date of death or
until the stated term of this option, whichever period is shorter; and provided further, that if
this option to the extent exercisable at retirement is not exercised by Employee within three
months immediately following date of retirement, then, to the extent required, the option will be
treated as a non-qualified stock option as noted in Section 4(e) below. For purposes hereof,
“retirement” shall mean separation from service, other than for Cause as defined in the Plan, on or
after the first day of the calendar month coincident with or next following the Participant’s
attainment of age 65.

     (c) If Employee’s employment is terminated by reason of Employee’s death, this option, to the
extent exercisable at Employee’s date of death, may be exercised at any time within one year after
that date (unless terminated earlier by its terms) by the estate or personal representative, or a
beneficiary who has acquired the option by will or by the applicable laws of descent and
distribution.

     (d) If Employee ceases to be employed by the Company and all Related Corporations by reason
of his or her disability, this option, to the extent exercisable upon his or her date of
termination of employment, may be exercised by Employee within three months after such date unless
terminated earlier by its terms; provided, however, that if Employee dies within such three months
period immediately following termination of employment by reason of his or her disability, this
option shall thereafter be exercisable, to the extent it was exercisable at the time of death, for
a period of twelve (12) months from the date of death or until the stated term of this option,
whichever period is shorter. For purposes hereof, the term “disability” shall mean “permanent and
total disability” as defined in Section 22(e)(3) of the Code or any successor statute. Any
determination of permanent and total disability shall be made in good faith by the Company.

     (e) To the extent that this option fails for any reason to qualify as an “incentive stock
option” under the Code, whether as a result of this Section 4 or otherwise, this option shall to
such
extent be treated as a non-qualified stock option.

3

 

5. Non-Transferability.

     This option shall not be transferable by Employee other than by will or the laws of descent
and distribution, and shall be exercisable, during Employee’s lifetime, only by Employee. From and
after Employee’s death, this option, to the extent exercisable at Employee’s death, may be
exercised prior to its termination by the estate or personal representative, or a beneficiary who
has acquired the option by will or by the applicable laws of descent and distribution. Any
attempted assignment, transfer, pledge, hypothecation or other disposition of this option in
contravention of the terms hereof, and the levy of any execution, attachment or similar process
upon this option, shall be null and void.

6. Adjustment for Capital Changes.

     (a) Stock Dividends and Stock Splits. In the event of any stock dividend payable in
shares of the Company’s Common Stock or any split-up or contraction in the number of shares of the
Company’s Common Stock occurring after the date of this Agreement and prior to the exercise in full
of this option, the number of shares subject hereto and the option price to be paid for each such
share shall each be proportionately adjusted.

     (b) Recapitalization, Reorganization, Consolidation or Mergers. In the event of a
recapitalization or reorganization of the Company or a consolidation or a merger involving the
Company (other than a transaction described in the next paragraph) pursuant to which securities of
the Company or of another corporation are issued with respect to the outstanding shares of Common
Stock, the Employee upon exercising this option shall be entitled to receive for the purchase
price paid upon such exercise the securities he or she would have received if he or she had
exercised such option, prior to such recapitalization or reorganization.

     (c) Certain Consolidations and Mergers. If the Company is to be consolidated with or
acquired by another entity in a merger or other reorganization or in the event of a sale or other
disposition of assets which constitutes a Change of Control (each, a “Sale”), the Committee or the
board of directors of any entity assuming the obligations of the Company hereunder (the “Successor
Board”), shall, as to the option, either (i) make appropriate provision for the continuation of
such option by substituting on an equitable basis for the shares then subject to such option either
(a) the consideration payable with respect to the outstanding shares of Common Stock in connection
with the Sale, (b) shares of stock of the surviving or successor corporation or other entity or (c)
such other securities as the Successor Board deems appropriate, the fair market value of which
shall not materially exceed the fair market value of the shares of Common Stock subject to such
option immediately preceding the Sale; or (ii) upon written notice to the Employee, provide that
the option must be exercised, to the extent then exercisable or to be exercisable as a result of
the Sale, within a specified number of days of the date of such notice, at the end of which period
the option shall terminate; or (iii) terminate the option in exchange for a cash payment equal to
the excess of the fair market value of the shares subject to such option (to
the extent then exercisable or to be exercisable as a result of the Sale) over the exercise price
thereof.

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     (d) Fractional Shares. No fraction of a share shall be purchasable or deliverable upon
any exercise of this option, but, in the event any adjustment hereunder of the number of shares
covered by this option shall cause such number to include a fraction of a share, such fraction
shall be adjusted to the nearest smaller whole number or shares.

7. Miscellaneous.

     (a) Rights as a Stockholder. Employee shall not be deemed for any purpose to be a
stockholder of the Company with respect to any shares subject to this option except to the extent
that this option shall have been exercised with respect thereto and, in addition, a certificate
shall have been issued therefor and delivered to Employee. No adjustment shall be made for
dividends (ordinary or extraordinary, and whether in cash, securities or other property) or
distributions or other rights for which the record date is prior to the date such certificate is
issued, except as provided in Section 6.

     (b) Employment Rights. This option shall not confer upon Employee any right with
respect to the continuance of Employee’s employment by the Company or by a Related Corporation, nor
shall it interfere in any way with the right of any of such corporations to terminate such
employment at any time.

     (c) Notices. Any communication or notice required or permitted to be given under
this Agreement shall be in writing and mailed by registered or certified mail or delivered in hand,
if to the Company, to its Treasurer at 2 Vision Drive, Natick, MA 01760, and, if to Employee, to
such address as shall be set forth on the signature page hereto.

     (d) Successors and Assigns. This Agreement shall be binding upon the heirs,
executors, administrators, successors and assigns of the respective parties hereto.

     (e) Taxes. As a condition to the issuance of the shares underlying this option, the
Company shall have the right to require the Employee to remit to the Company an amount sufficient
to satisfy any federal, state or local withholding tax requirements or make other arrangements
satisfactory to the Company with regard to such taxes, as provided in the Plan.

     (f) Amendments and Waivers. The provisions of the Agreement may not waived, amended,
modified or terminated except with written consent of the parties hereto.

     (g) Governing Law. The validity and construction of the Agreement shall be governed by
the laws of the Commonwealth of Massachusetts (without regard to choice of law provisions).

     (h) Disqualifying Dispositions. Employee understands that, in order to enjoy the
benefits accruing to the holder of an incentive stock option under the Internal Revenue Code,
Employee may not dispose of any shares transferred to Employee pursuant to Employee’s exercise of
this option
either (i) within two years from the date of the granting of this option to Employee, or (ii)
within one year after the transfer of such shares to Employee.

     (i) Severability. If any provision of this Agreement shall be held to be illegal,
invalid or

5

 

unenforceable, such illegality, invalidity or unenforceability shall attach only to such
provision and shall not in any manner affect or render illegal, invalid or unenforceable any other
provision of this Agreement, and this Agreement shall be carried out as if any such illegal,
invalid or unenforceable provision were not contained herein.

     (j) Captions. Captions are for convenience only and are not deemed to be part of this
Agreement.

     (k) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

[Remainder of Page Intentionally Left Blank]

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     IN WITNESS WHEREOF, NATIONAL DENTEX CORPORATION has caused this option to be executed in its
name and its corporate seal to be hereto affixed by its proper officer thereunto duly authorized
and the said has hereunto set his hand and seal all as of the date first above written.

	 	 	 	 	 
	 	NATIONAL DENTEX CORPORATION

 
	 	By:  	 
	 	 	Name:  	 
	 	 	Title:  	 
	 
	 	EMPLOYEE

 
	 	Name: 	 
	 	 	(Signature) 
	 
	 	Address: 	 
	 	 

7

 

Exhibit A

Form of Exercise

To Be Completed When Exercising Options

Employee Incentive Stock Option

Mr. Richard Becker

Executive Vice President and Treasurer

National Dentex Corporation

2 Vision Drive

Natick, MA 01760

Dear Mr. Becker:

I hereby exercise my right with respect to the Incentive Stock Option dated _________, to
purchase _________shares of
National Dentex Common Stock effective as of this ____________ day of
_____________,
_________.

(Month)           (Year)

In connection with my purchase of such shares I hereby certify that it is my present intent to
acquire the said shares for investment purposes only not with the intent of resale or distribution
thereof.

Also, if I sell any of this stock before one year from this date or two years from the date the
option was granted, whichever is later, I will immediately notify the Company of the date of sale
and the sale price.

Very Truly Yours,

                                                            

Name

Please Register stock as follows:

     Name(s): 

     Address :  

      

     Social Security No.  

8

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