Document:

NSMH 12.31.2012 10-K Exhibit 10.85

Exhibit 10.85

        
2012 MANAGEMENT INCENTIVE PLAN (MIP)
NATIONSTAR MORTGAGE LLC

	
		
	PARTICIPANT
	POSITION

	(Participant's Full Name)
	(Job Title)

	 
	 

	 
	 

	 
	 

	
	
	

Maximum Bonus Opportunity is ___% of your December 31, 2012 annual base salary.

Target Bonus reflects performance at the “Meets Expectations” level and is generally expressed as 60% of the Maximum Bonus Opportunity.

Plan Approval

__________________________________                         
Business or Function Head             Date                                

___________________________________
Finance                                               Date

___________________________________                            
Human Resources                              Date                                

_________________________________
President / COO or CFO                    Date     

_____________________________________
CEO                                                      Date

___________________________________________
Participant                                            Date

                                                

1

Exhibit 10.85

BASIS FOR DETERMINING INCENTIVE AWARDS

Plan Purpose
It is the company's objective to design and administer incentive opportunities that when combined with base salary will deliver above average total cash to successful performers as compared to their peers in firms competing in the same product, service, and talent marketplaces.

Eligibility for Participation
Only those Participants actively employed with Nationstar Mortgage LLC (the “Company”), identified on the cover page, and designated by the CEO are eligible for participation in this incentive plan.

Life of the Plan
This incentive plan is effective beginning January 1, 2012 and continues until revised or revoked by the CEO. 

Plan Approvals
The CEO, and such other Nationstar executives whom the CEO authorizes to so act, will determine the individual awards for all Participants in this Plan.

Program Measures
Participants in this Plan are eligible for incentive compensation based on achievement of objectives/goals as identified in the attached Appendix A.

Incentive Opportunity
Key performance objectives, measures and targets have been established for this Participant/position. The incentive awards will be calculated in accordance with the applicable criteria documented in Appendix A. These should be communicated to the eligible Participant prior to the performance period. This incentive plan expresses the incentive opportunity as a percentage of base salary. The base salary used will be the Participant's base salary as of December 31 of the applicable plan year. 

New / Reactivated / Transferred Employees
With respect to any payment, Participants who become eligible for participation during the plan performance period will be prorated from the Eligibility Date. The Eligibility Date shall be defined as the effective date that the new/reactivated/transferred Participant assumes his/her responsibilities as reflected on the Payroll Action Notice/in the HRIS system.

Responsibility for Calculations and Plan Payments
The Participant must complete the requirements as specified by management to qualify for incentive consideration.  The appropriate Nationstar SVP Finance or his/her designee is charged in each case with the responsibility for incentive payment calculations made in accordance with the terms of this Plan. He/she must also certify full and partial year payments for all qualified Participants. The Business/Function EVP or his/her designee will be responsible for resolving discrepancies and clarifying interpretations of this Plan on an ongoing basis. 

2

Exhibit 10.85

Adjustments
From time to time adjustments to the awards may need to be made. The CEO may modify awards based on various business factors during the Plan year and/or input from executive management.

Performance Rating Requirement
In order to be eligible to receive any payment under this program, the Participant must, at all times, maintain an acceptable level of performance. Participants are also expected to follow all guidelines with respect to the code of conduct as specified by the Company.

Review and Modification of the Plan
It is important that performance objectives/goals established in the Company's incentive plans support a competitive position as it relates to the market and the overall business plan.  Clearly, expectations of market potential can change during the year.  Such reviews may result in changes in incentive rates or goals upward or downward depending on specific circumstances at the Company's discretion without the need for prior notice.  Any changes will require approval of the CEO.

Timing of Incentive Payments
Awards will be paid as soon as practical after the Company's financial results for the year have been determined, but in no event later than March 15 following the end of the fiscal year. Awards shall be payable only if the Participant is employed by the Company when payment is made.  If a Participant resigns, gives notice of his/her intent to resign or otherwise terminates his/her employment before the award is paid, the Participant forfeits all rights to any incentive award. Any incentive award that is paid is at the sole discretion of the Company.

Terminated Employees
A Participant whose employment is terminated (either by the Company or the Participant), prior to the awards being paid, shall not be eligible to receive any payment under this Plan, except where payment is required by federal or state law.  Otherwise stated, the Participant must be actively employed when awards are paid to be eligible to receive any payment.  This provision shall not apply in cases of the employee's death, Retirement or Disability.  Management reserves the right to withhold payments from any Participant where there is an ongoing investigation with respect to appropriate business practices until such time as the investigation is complete and the employee has been exonerated.

Plan Amendments and Termination
The CEO will have the complete authority to interpret Plan provisions, to revise the Plan and to make determinations deemed appropriate for administration of the Plan.  The CEO reserves the right to amend or terminate this Plan or to revise any aspect of the Plan at any time, including individual payouts, without prior notification to the Participant(s).

Other General Rules
Participation in this Plan cannot be construed to constitute a contract between the Company and any of its employees. All employees are employee's at-will.  Plan participation does not limit the Company from terminating an employee's employment at any time.  Participation in the Plan during the fiscal year does not imply participation in any subsequent fiscal year.

3

Exhibit 10.85

Non-Solicitation
As a condition of participation in this Plan, the Participant specifically agrees that during the course of the Participant's employment with the Company and for the period of twelve (12) months following his/her termination of employment for any reason: (i) he/she will not directly or indirectly (whether personally or through another business, entity or person) recruit, solicit, induce or encourage others to recruit, solicit, or induce, any employee of the company to terminate his/her employment with or otherwise cease his/her relationship with the company or (ii) hire any individual who left the employ of the company or any of its affiliates during the preceding one-year period.  Subject to the limitations noted in this Plan and the terms and conditions, the Participant is not restricted from being employed by or engaged in any type of business following the termination of the Participant's employment relationship with the Company.  

Plan Acknowledgement
I acknowledge that without my signature to demonstrate the acceptance of all the terms and conditions of this Plan and the terms and conditions, unless prohibited by the state law, I will be ineligible to participate in this Plan and I will not be entitled to receive any payment provided for in such Plan.  Notwithstanding the foregoing, in the event I for any reason fail to sign or acknowledge my acceptance of all the terms and conditions of this Plan and the terms and conditions, any incentive payment made to me by the Company will be governed exclusively by this Plan.

By signing or acknowledging the Plan, I authorize the Company to deduct any incentive payment or advanced payment from any future incentive payment or my final paycheck upon termination if the conditions for earning such incentive payments do not occur.  I understand and agree to the use of an electric method of signature to demonstrate my acceptance of the terms and conditions of this Plan, and the terms and conditions, including any applicable amendment, and all related business practices and policies, all of which are incorporated into and made a part of this Plan and which may be revised from time to time at the Company's sole discretion.

4

Exhibit 10.85

Appendix A

2012 SCORECARD

EMPLOYEE:  

POSITION:  
                                                                                                                        
EVALUATION OF KEY PERFORMANCE OBJECTIVES
                                                                                                                                                      Rate each Key Performance Objective in the “Rating” column.
                                                                                                                                                     Provide specific examples of performance in the “Results” column     
	
			
	Score
	Overall Rating
	Percent of Opportunity

	5
	4.50 - 5.00 = Outstanding
	100%

	4
	4.00 - 4.49 = Exceeds Expectations
	80%

	3
	3.50 - 3.99 = Meets Expectations
	60%

	2
	3.00 - 3.49 = Acceptable
	40%

	1
	2.75 - 2.99 = Marginal
	20%

	—
	< 2.75 = Needs Improvement
	—%

              Maximum Bonus Opportunity:   ____% of Base Salary

	
								
	Key Performance Objectives
	Measurements
List your metric(s) for each objective. Describe how / when you will measure your results.
	Results
	Weight (enter as decimal)
	Rating
	Weighted Rating

	A.
	5 = 
4 = 
3 = 
2 = 
	 
	 
	 
	—

	B.
	5 = 
4 = 
3 = 
2 =
	 
	 
	 
	—

	C.
	5 = 
4 = 
3 = 
2 =
	 
	 
	 
	—

	D.
	5 = 
4 = 
3 = 
2 =
	 
	 
	 
	—

	E.
	5 = 
4 = 
3 = 
2 =
	 
	 
	 
	—

	 
	 
	Overall Weight
(must total 1.00)
	—
	Weighted Score
	—

5Exhibit10.23_2012Form10-K

FIRST AMENDMENT 
TO 
AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT 
OF 
M&N GROUP HOLDINGS, LLC
A Delaware Limited Liability Company
This First Amendment (this “Amendment”) to the Amended and Restated Limited Liability Company Agreement of M&N Group Holdings, LLC, a Delaware limited liability company (the “Company”), is entered into effective as of October 28, 2011 (the “Effective Date”), by and among the members of the Company (the “Members”).  
R E C I T A L S
WHEREAS, the Members entered into the Amended and Restated Limited Liability Company Agreement effective as of October 1, 2011 (the “Original Agreement”);
WHEREAS, Manning & Napier Associates, LLC, a Delaware limited liability company, become a member of the Company effective as of the Effective Date;
WHEREAS, the Members agreed to clarify as of the Effective Date several provisions of the Original Agreement that did not accurately reflect the intent of the Members; 
WHEREAS, the Members intend to memorialize the clarification; and
NOW, THEREFORE, for good and valuable consideration and intending to be legally bound hereby, the Members agree as follows:
1.Definitions.  Any capitalized term used, but not defined, in this Amendment shall have its respective meaning as set forth in the Original Agreement.
2.Amendments.  From and after the Effective Date:
(a)    Section 5.01(b) is hereby deleted in its entirety and a new Section 5.01(b) substituted in place thereof to provide as follows:
“Subject to the provisions of Sections 5.04 and 5.05, during each Fiscal Year beginning with the Company’s Fiscal Year ending December 31, 2012, in which a Class B Unit issued to Richard Goldberg and/or William Manning is outstanding, Net Profits from Interim Capital Transactions with respect to which either individual is the Requesting Member shall be allocated first to that individual until such time as when the positive balance in his Capital Account bears the same ratio to the sum of the Capital Accounts of all Members, as his Sharing Percentage at the end of such year (“Equalization”).”

(b)    Section 10.02(b)(iii)(B), proviso is amended and revised to read as follows:
“provided, however, if any Class B Unit issued to Richard Goldberg and/or William Manning is outstanding during the final Accounting period, Section 5.01(b) shall be applied to both individuals first (by taking into account Net Profits (or, if necessary), items of income and gain (in which case, such items shall be excluded in the determination of the Net Profits or Net Losses) from all Interim Capital Transactions) before the application of this paragraph 10.2(b)(2)(iii)(B);”.
(c)    Section 11.03, clause (i), is amended and revised to read as follows:
“use an accounting method that is permitted or required by the Code”
(d)    A new Section 9.7 is added to read as follows:
“Section 9.07    Additional Provisions relating to TRA Rights.      
(a)    Notwithstanding any provision herein, for federal, state and local income tax purposes, a Unit (the “Redeemed Unit”) with respect to which the Initial Public Offering or an Interim Transaction has been effectuated shall be treated as having been redeemed by the Company in consideration for the payment upfront, if any, together with any distribution from the Company on account of a TRA Right relating to the Unit.
(b)    The Company and the Member holding the Redeemed Unit (“Redeeming Member”) shall elect out of the installment sale treatment with respect to the Redeemed Unit under Code Section 453(d) and Treasury Regulations Section 15A.453-1(c)(1).
(c)    Any payment the Company receives on account of any TRA Right shall not be set aside or escrowed and shall be available for distribution to the Redeeming Members only pursuant to provisions hereof.
(d)    The Company’s obligation to make distribution of with respect to its Redeemed Unit shall not be evidenced by a note or another instrument transferable by the Redeeming Member.  
(e)    A Redeeming Member shall not hypothecate, mortgage, pledge or otherwise transfer its rights and obligations with respect to payments for a redeemed Unit.”
3.Miscellaneous Provisions
(a)    This Amendment shall constitute and evidence the consent of both the Managing Member and all Members to this Amendment within the meaning of Section 13.01 of the Original Agreement.

(b)    Except as expressly amended hereby, the terms and conditions of the Original Agreement are hereby ratified and confirmed, and shall continue in full force and effect.  In the event of any conflict or inconsistency between the terms set forth herein and the terms of the Original Agreement, the terms contained in this Amendment shall control.
(c)    This Amendment shall be governed by, and construed in accordance with, the laws and decisions of the State of Delaware, without regard to conflict of law rules applied in such State.
(d)    This Amendment constitutes the entire understanding among the parties hereto.  No waiver or modification of the provisions of this Amendment shall be valid unless it is in writing and executed pursuant to Section 13.01 of the Original Agreement and then, only to the extent therein set forth.
(e)    This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement binding on the Members and the Board.  For purposes of this Amendment, any signature hereto transmitted by facsimile or e-mail (in PDF format) shall be considered to have the same legal and binding effect as any original signature hereto. 
[THE NEXT PAGE IS THE SIGNATURE PAGE.]

The parties hereto have, in fact, made and effectuated the agreements and transactions set forth herein above on the Effective Date, and have executed this instrument as of the 31st day of December, 2012, as a formality to confirm the agreements and transactions so made and effectuated by the parties on the Effective Date.

MANAGING MEMBER:

/s/ William Manning
WILLIAM MANNING

MEMBERS:

MNA ADVISORS, INC.

By: /s/ Michelle Thomas
Name: MICHELLE THOMAS 
Title: Corporate Secretary

M&N ADVISORY ADVANTAGE CORPORATION

By: /s/ Richard B. Yates
Name: RICHARD B. YATES 
Title: Corporate Secretary

M&N ALTERNATIVE OPPORTUNITIES, INC.

By: /s/ Richard B. Yates
Name: RICHARD B. YATES 
Title: Corporate Secretary

/s/ Richard S. Goldberg
RICHARD S. GOLDBERG

MANNING & NAPIER ASSOCIATES, LLC

By: /s/ William Manning
Name: WILLIAM MANNING 
Title: Authorized Signatory

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