Document:

exv10w3

	 	 	 	 	 

Exhibit 10.3

2009 Long-Term Incentive Award Plan of

Walter Investment Management Corp.

Nonqualified Option Award Agreement

 

 

2009 Long-Term Incentive Award Plan of

Walter Investment Management Corp.

Nonqualified Option Award Agreement

     You have been selected to receive a grant of nonqualified Options pursuant to the
2009 Long-Term Incentive Award Plan of Walter Investment Management Corp. (the “Plan”) as specified
below:

     Participant:

     Date of Grant:

     Number of Shares Covered by This Option:

     Option Price:

     Date of Expiration:

     Vesting of Options:

	 	 	 
	 	 	Portion of
	Vesting Date	 	Options Vesting
	 
	January 4, 2011

	 	One Third
	January 4, 2012

	 	One Third
	January 4, 2013

	 	One Third

THIS AGREEMENT, effective as of the Date of Grant set forth above, represents the grant of a
nonqualified Option by Walter Investment Management Corp., a Maryland corporation (the “Company”),
to the Participant named above, pursuant to the provisions of the Plan.

The Plan provides a complete description of the terms and conditions governing this Option. If
there is any inconsistency between the terms of this Agreement and the terms of the Plan, the
Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement. All
capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set
forth otherwise herein. The parties hereto agree as follows:

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	1.	 	Grant of Options. The Company hereby grants to the
Participant an Option to purchase the number of Shares
set forth above, at the stated Option Price, which is
one hundred percent (100%) of the Fair Market Value of a
Share on the Date of Grant, in the manner and subject to
the terms and conditions of the Plan and this Agreement.
	 
	2.	 	Exercise of Option. Except as hereinafter provided, the
Participant may exercise this Option at any time after
the Option vests (according to the vesting schedule set
forth above), provided that no exercise may occur
subsequent to the close of business on the Date of
Expiration (as defined on page 1 of this Agreement).
This Option may be exercised in whole or in part, but
not for less than one hundred (100) Shares at any one
time, unless fewer than one hundred (100) Shares then
remain subject to the Option, and the Option is then
being exercised as to all such remaining Shares.
	 
	3.	 	Termination of Service.

	 	(a)	 	By Death. In the event the employment of the Participant with
the Company is terminated by reason of death, the portion of
the Option not yet vested as of the date of death shall
become immediately vested and exercisable. The entire Option
shall remain exercisable at any time prior to its expiration
date, or for twelve (12) months after the date of death,
whichever period is shorter, by such person or persons as
shall have been named as the Participant’s beneficiary, or by
such persons that have acquired the Participant’s rights
under the Options by will or by the laws of descent and
distribution.
	 
	 	(b)	 	By Disability or Retirement. In the event the employment of
the Participant with the Company is terminated by reason of
Disability or Retirement, the portion of the Option not yet
vested as of the date of termination shall become immediately
vested and exercisable. The entire Option shall remain
exercisable at any time prior to its expiration date, or for
twelve (12) months after the date of termination, whichever
period is shorter.
	 
	 	 	 	For purposes of this Agreement, (a) Disability shall be
defined as a “permanent and total disability” within the
meaning of Section 22(e)(3) of the Internal Revenue Code of
1986, as amended and such other disabilities, infirmities,
afflictions or conditions as the Committee by rule may
include, and (b) Retirement shall mean, Participant’s
voluntary termination of employment after such time as
either, Participant has reached the age of 60, or the sum of
Participant’s age and years of service with the Company
(inclusive of years served with any predecessor or successor
companies to the Company) exceeds 70; provided that, in
either case, Participant provides the Company with at least 6
months written notice of Participant’s intention to retire,
or such lesser time as the Company may agree.
	 
	 	(c)	 	For Cause. In the event the employment of the Participant
with the Company is involuntarily terminated for Cause, all
vested and unvested options shall be forfeited.
	 
	 	 	 	For purposes of this Agreement, Cause means the Participant’s:

	 	i)	 	Willful failure to substantially perform the Executive’s duties with
the Company (other than any such failure resulting from the
Executive’s Disability or Retirement), after a written demand for
substantial performance is delivered to the Executive that
specifically identifies the manner in which the Company believes that
the Executive has not substantially performed such duties, and the
Executive has failed to remedy the situation, to the extent possible,
within fifteen (15) business days of such written notice from the
Company, or such longer time as may be reasonably required to remedy
the situation, but no longer than forty-five (45) calendar days;

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	 	ii)	 	Conviction of, or plea of guilty or nolo contendere, to any felony which, in the discretion of the
Compensation and Human Resources Committee of the Company’s Board of Directors, is materially injurious
to the Company or its reputation or which compromises the Executive’s ability to perform the
Executive’s job function, or any other crime involving moral turpitude or the personal enrichment of
the Executive at the expense of the Company;
	 
	 	iii)	 	Willful violation of any of the covenants contained in the Participant’s employment agreement (e.g.,
Noncompete, Nonsolicitation, Confidentiality, etc.), as applicable;
	 
	 	iv)	 	Act of dishonesty resulting in or intending to result in personal gain at the expense of the Company; or
	 
	 	v)	 	Engaging in any act that is intended, or may be reasonably expected, to harm the reputation, business
prospects, or operations of the Company.

	 	 	 	For purposes of this Section 3, no act or omission by the
Executive shall be considered “willful” unless it is done
or omitted in bad faith or without reasonable belief that
the Executive’s action or omission was in the best
interests of the Company. Any act or failure to act based
upon: (i) authority given pursuant to a resolution duly
adopted by the Board; or (ii) advice of counsel for the
Company, shall be conclusively presumed to be done or
omitted to be done by the Executive in good faith and in
the best interests of the Company.
	 
	 	(d)	 	For Other Reasons. Subject to the Compensation and Human
Resource Committee’s (the “Committee”) discretion, if the
employment of the Participant shall terminate for any
reason other than the reasons set forth in this Section
3(a) through 3(c) herein, the portion of the Option not
yet vested as of the date of termination shall be
forfeited. The portion of the Option vested as of the
effective date of termination shall remain exercisable at
any time prior to its expiration date, or for twelve (12)
months after the effective date of termination, whichever
period is shorter.

	4.	 	Change in Control. Notwithstanding anything to the
contrary in this Agreement, in the event of a Change in
Control of the Company and prior to the Participant’s
termination of employment, the Participant shall become
immediately fully vested without restriction in all
Options granted pursuant to this Agreement.
	 
	5.	 	Restrictions on Transfer. Unless otherwise determined by
the Committee in accordance with the Plan, this Option
may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will
or by the laws of descent and distribution. Further,
this Option shall be exercisable during the
Participant’s lifetime only by the Participant or the
Participant’s legal representative.
	 
	6.	 	Recapitalization. In the event of any change in the
capitalization of the Company such as a stock split or a
corporate transaction such as any merger, consolidation,
separation, or otherwise, the number and class of Shares
subject to this Option, as well as the Option Price,
shall be equitably adjusted by the Committee to prevent
dilution or enlargement of rights.

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	7.	 	Procedure for Exercise of Option. This Option may be exercised by delivery of written notice to the Company at
its executive offices, addressed to the attention of its Secretary. Such notice: (a) shall be signed by the
Participant or his or her legal representative; (b) shall specify the number of full Shares then elected to be
purchased with respect to the Option; (c) unless a Registration Statement under the Securities Act of 1933 is in
effect with respect to the Shares to be purchased, shall contain a representation of the Participant that the
Shares are being acquired by him or her for investment and with no present intention of selling or transferring
them, and that he or she will not sell or otherwise transfer the Shares except in compliance with all applicable
securities laws and requirements of any stock exchange upon which the Shares may then be listed; and (d) shall be
accompanied by payment in full of the Option Price of the Shares to be purchased.
	 
	 	 	The Option Price upon exercise of this Option shall be payable to the Company in full as provided for in the Plan.
	 
	 	 	As promptly as practicable after receipt of notice and payment upon exercise, the Company shall cause to be
issued and delivered to the Participant or his or her legal representative, as the case may be, certificates for
the shares so purchased, which may, if appropriate, be endorsed with appropriate restrictive legends. The share
certificates shall be issued in the Participant’s name (or, at the discretion of the Participant, jointly in the
names of the Participant and the Participant’s spouse). The Company shall maintain a record of all information
pertaining to the participant’s rights under this Agreement, including the number of shares for which his or her
Option is exercisable. If the Option shall have been exercised in full, this Agreement shall be returned to the
Company and canceled.
	 
	8.	 	Beneficiary Designation. The Participant may, from time to time, name any beneficiary or beneficiaries (who may
be named contingently or successively) to whom any benefit under this Agreement is to be paid in case of his or
her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior
designations by the Participant, shall be in a form prescribed by the Company, and will be effective only when
filed by the Participant in writing with the Secretary of the Company during the Participant’s lifetime. In the
absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the
Participant’s estate.
	 
	9.	 	Rights as a Stockholder. The Participant shall have no rights as a stockholder of the Company with respect to the
Shares subject to this Agreement until such time as the purchase price has been paid, and the Shares have been
issued and delivered to him or her.
	 
	10.	 	Continuation of Employment. This Agreement shall not confer upon the Participant any right to continue employment
with the Company, nor shall this Agreement interfere in any way with the Company’s right to terminate the
Participant’s service at any time.

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	11.	 	Miscellaneous.

	 	(a)	 	This Agreement and the rights of the Participant hereunder
are subject to all the terms and conditions of the Plan,
as the same may be amended from time to time, as well as
to such rules and regulations as the Committee may adopt
for administration of the Plan. The Committee shall have
the right to impose such restrictions on any Shares
acquired pursuant to the exercise of this Option, as it
may deem advisable, including, without limitation,
restrictions under applicable federal securities laws,
under the requirements of any stock exchange or market
upon which such Shares are then listed and/or traded, and
under any blue sky or state securities laws applicable to
such Shares. It is expressly understood that the Committee
is authorized to administer, construe, and make all
determinations necessary or appropriate to the
administration of the Plan and this Agreement, all of
which shall be binding upon the Participant.
	 
	 	(b)	 	The Committee may terminate, amend, or modify the Plan;
provided, however, that no such termination, amendment, or
modification of the Plan may in any material way adversely
affect the Participant’s rights under this Agreement,
without the written consent of the Participant.
	 
	 	(c)	 	The Participant acknowledges and agrees that the Company
shall have the power and the right to deduct or withhold,
an amount sufficient to satisfy federal, state, and local
taxes (including the Participant’s FICA obligation),
domestic or foreign, required by law to be withheld with
respect to any exercise of the Participant’s rights under
this Agreement should Participant fail to make timely
payment of all taxes due.
	 
	 	 	 	The Participant may elect, subject to any procedural rules
adopted by the Committee, to satisfy the withholding
requirement, in whole or in part, by having the Company
withhold Shares having an aggregate Fair Market Value on
the date the tax is to be determined, equal to the minimum
amount required to be withheld.
	 
	 	(d)	 	The Participant agrees to take all steps necessary to
comply with all applicable provisions of federal and state
securities laws in exercising his or her rights under this
Agreement.
	 
	 	(e)	 	This Agreement shall be subject to all applicable laws,
rules, and regulations, and to such approvals by any
governmental agencies or national securities exchanges as
may be required.
	 
	 	(f)	 	All obligations of the Company under the Plan and this
Agreement, with respect to this Option, shall be binding
on any successor to the Company, whether the existence of
such successor is the result of a direct or indirect
purchase, merger, consolidation, or otherwise, of all or
substantially all of the business and/or assets of the
Company.
	 
	 	(g)	 	To the extent any provision of this Agreement is held by a
court of competent jurisdiction to be unenforceable or
invalid for any reason, the remaining provisions of this
Agreement shall not be affected by such holding and shall
continue in full force in accordance with their terms.

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	 	(h)	 	To the extent not preempted by federal law, this Agreement shall be governed by, and construed in
accordance with, the laws of the state of Maryland.
	 
	 	(i)	 	Notice hereunder shall be given to the Company at its principal place of business, and shall be
given to the Participant at the address set forth below, or in either case at such addresses as one
party may subsequently furnish to the other party in writing.
	 
	 	(j)	 	This Option is not intended to qualify as an “incentive stock option” under Section 422 of the Code.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Date of
Grant.

	 	 	 	 	 
	 	Walter Investment Management Corp.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

ATTEST:

	 	 	 	 	 
	 	 	 	
 	 
	 	 	 	Participant
 	 
	 	 	 	Participant’s name and address: 	 
	 
	 	 	 	
 	 
	 
	 	 	 	
 	 
	 
	 	 	 	
 	 
	 
	 	 	 	
 	 

6exv10w1

Exhibit 10.1

THIRD AMENDMENT TO EMPLOYMENT AGREEMENT

     THIS THIRD AMENDMENT TO THE EMPLOYMENT AGREEMENT entered into as of May 23, 2005 (the
“Agreement”) by and between Commercial Metals Company, a Delaware corporation (the “Employer”), and
Murray R. McClean (“Executive”), first amended as of September 1, 2006, and second amended as of
April 7, 2009, is made this 31st day of December, 2009.

RECITALS:

     WHEREAS, the Employer and Executive entered into the Agreement as of May 23, 2005 and amended
the Agreement as of September 1, 2006 and April 7, 2009; and

     WHEREAS, the Employer and Executive desire to amend the Agreement to bring the provisions into
compliance with Section 409A of the Internal Revenue Code of 1986, as amended.

     NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, the
Employer and Executive agree to further amend the Agreement as follows:

     1. Paragraph 5.(b) of the Agreement is hereby amended by deleting said paragraph in its
entirety and substituting in lieu thereof the following new Paragraph 5.(b):

     (b) BONUS. Executive shall be eligible to receive a bonus (the “Bonus”) for
each fiscal year of Employer ending August 31 during the term of this Agreement.
The amount of the Bonus shall be determined by, and in the sole discretion of, the
Compensation Committee of the Board of Directors and shall be based upon its
evaluation of Executive’s performance during the fiscal year and such other factors
or criteria as it may, in its sole discretion, consider. The Bonus, if any, shall
be paid in a lump sum, as soon as practicable following the end of the Employer’s
fiscal year to which the Bonus relates, but in no event later than November 1
following the end of such fiscal year.

     2. Paragraph 6.(d) of the Agreement is hereby amended by deleting said paragraph in its
entirety and substituting in lieu thereof the following new Paragraph 6.(d):

     (d) Executive may terminate this Agreement for Good Reason. Prior to
terminating the Agreement for Good Reason, Executive must give Employer thirty (30)
days advance written notice of his intent to terminate for Good Reason and the
grounds therefore, such that Employer has the opportunity to cure and/or rectify
the alleged breach, provided that such notice to terminate must be given no later
than ninety (90) days from the initial existence of such Good Reason condition.
Only if Employer does not cure the alleged breach at the end of thirty (30) days
may Executive terminate for Good Reason.

     3. Paragraph 7 of the Agreement is hereby amended by deleting said paragraph in its entirety
and substituting in lieu thereof the following new Paragraph 7:

     7. SEVERANCE. Executive shall be entitled to the following compensation upon
termination of his employment resulting from:

     (a) TERMINATION RESULTING FROM DEATH OR DISABILITY. In the event
Executive’s employment is terminated as a result of

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his death or disability, and such termination constitutes a
“separation from service” under Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”), Executive or his estate shall be entitled
to the following:

     (i) such life insurance or disability benefits as Executive
may be entitled to pursuant to any life or disability insurance
then maintained by the Employer for the benefit of its employees
and executive officers and, in addition thereto, Employer shall pay
a lump sum payment of fifty thousand dollars ($50,000.00) to
Executive or his estate;

     (ii) a pro-rata share of Bonus in an amount as determined by
the Compensation Committee of the Board of Directors in their sole
discretion, payable no later than November 1 following the end of
Employer’s fiscal year during which termination occurs;

     (iii) pursuant to the terms and conditions of the Employer’s
Key Employee Long-Term Incentive Plan, payment, at such time as all
other participants in that plan receive payment, of any cash
incentive attributable to periods during which Executive was
employed;

     (iv) to the extent permitted by the terms and conditions of
Employer’s 1996 Long-Term Incentive Plan or other applicable equity
incentive plan(s) and to the extent authorized by the terms of each
of Executive’s outstanding award or grant agreements entered into
pursuant to such plan(s), immediate vesting of all stock
appreciation rights, restricted stock, and/or stock options
previously awarded Executive; and

     (v) to the extent permitted by the terms and conditions of the
Profit Sharing and 401(k) Plan and Benefit Restoration Plan
maintained by the Employer, crediting of any Employer contribution
to the Executive’s account attributable to the plan year during
which termination occurs and accelerated full vesting of any
previously unvested Employer contributions to the Executive’s
account in such plans.

     (b) TERMINATION WITHOUT CAUSE BY EMPLOYER OR FOR GOOD REASON BY
EXECUTIVE. In the event Executive’s employment is terminated without Cause
by the Employer or for Good Reason by the Executive, and such termination
constitutes a “separation from service” under Section 409A of the Code,
Executive shall be entitled to the following:

     (i) lump sum payment of an amount equal to 1.5 times
Executive’s then current annual base salary;

     (ii) a cash payment in lieu of Bonus equal to 1.5 times the
average annual Bonus received by Executive for the five year period
ended with Employer’s last complete fiscal year prior to
termination without Cause by the Employer or for Good Reason by the
Executive; and

     (iii) all those additional amounts described above in 7(a)ii,
iii, iv

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and v.

     (c) TERMINATION FOR CAUSE. In the event Executive’s employment is
terminated for Cause, Executive shall not be entitled to compensation.

     (d) TERMINATION WITHOUT CAUSE BY EMPLOYER OR FOR GOOD REASON BY
EXECUTIVE WITHIN TWELVE MONTHS FOLLOWING A CHANGE OF CONTROL. If, within
twelve months following a Change in Control, Executive’s employment is
terminated by the Employer for any reason other than for Cause, death or
disability or if Executive terminates employment for Good Reason during
such twelve (12) month period, and such termination constitutes a
“separation from service” under Section 409A of the Code, Executive shall
be entitled to the following:

     (i) lump sum payment of two times Executive’s then current
annual base salary;

     (ii) a cash payment in lieu of Bonus equal to two times the
average annual Bonus received by Executive for the five year period
ended with Employer’s last complete fiscal year prior to the Change
of Control; and

     (iii) all those additional amounts described above in 7(a)ii,
iii, iv and v; and

     (iv) a continuation of Welfare Benefit Plans (as those terms
are defined in the Employer’s form Executive Employment Continuity
Agreement, a copy of which was filed with the Securities and
Exchange Commission as Exhibit 10.1 to Commercial Metals Company’s
Form 10 Q for the quarter ended February 28, 2006 (the “EECAs”)),
in which the Executive or his dependents are participating
immediately prior to the Executive’s termination date. The
Executive’s participation in the Welfare Benefit Plans shall be for
twenty four (24) months under terms at least as favorable to
Executive as those contained in the EECAs. To the extent such
benefits provided by the Employer are taxable to Executive, such
benefits, for purposes of Section 409A of the Code, shall be
provided as separate monthly in-kind payments of those benefits,
and to the extent those benefits are subject to and not otherwise
exempt from Section 409A of the Code, the provision of the in-kind
benefits during one calendar year shall not affect the in-kind
benefits to be provided in any other calendar year, and the rights
to such in-kind benefits shall not be subject to liquidation or
exchange for another benefit.

     (e) EMPLOYER’S NON-RENEWAL OF AGREEMENT. In the event, pursuant to
Paragraph 3, the Employer elects not to renew this Employment Agreement,
either at the end of the initial term or any successive one year extension,
Executive shall receive a lump sum payment of one hundred thousand dollars
($100,000.00) upon Executive’s separation from service.

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     (f) PAYMENT OF SEVERANCE. Except as otherwise provided, all lump sum
or cash payments due to Executive pursuant to this Paragraph 7, subject to
Paragraph 17, shall be paid to Executive as soon as practicable following
the date of Executive’s separation from service, but in no event later than
2 1/2 months following the end of the calendar year in which Executive’s
separation from service occurs.

     4. The Agreement is hereby amended by adding the following new Paragraph 17 to the Agreement:

     17. SECTION 409A; DELAY OF SEVERANCE PAYMENTS. To the extent (i) any
post-termination payments to which Executive becomes entitled under this Agreement
or any agreement or plan referenced herein constitute deferred compensation subject
to Section 409A of the Code, and (ii) Executive is deemed at the time of such
termination of employment to be a “specified employee” under Section 409A of the
Code, then such payment will not be made or commence until the earliest of (x) the
expiration of the six (6) month period measured from the date of Executive’s
“separation from service” (as such term is defined in the Treasury Regulations
promulgated under Section 409A of the Code and any other guidance issued under
Section 409A of the Code); and (y) the date of Executive’s death following such
separation from service. Upon the expiration of the applicable deferral period,
any payments which would have otherwise been made during that period (whether in a
single sum or in installments) in the absence of this Paragraph 17 will be paid to
Executive or Executive’s beneficiary in one lump sum.

     5. Except to the extent specifically amended as provided herein, the Agreement is in all
respects ratified and confirmed, and all the terms, conditions and provisions thereof shall be and
remain in full force and effect for any and all purposes. From and after the date of this Third
Amendment, any and all references to the Agreement shall refer to the Agreement as hereby amended.

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 	 	 
	EXECUTIVE	 	 	 	EMPLOYER	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	COMMERCIAL METALS COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Murray R. McClean

	 	 
	 	By:
	 	/s/ Robert R. Womack
	 	 
	 

	 	 	 	 	 	 	 	 
	Murray R. McClean

	 	 	 	 	 	Robert R. Womack, Director	 	 

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