NATIONSTAR MORTGAGE HOLDINGS INC. (a Delaware corporation) [•] Shares of Common Stock UNDERWRITING AGREEMENT
Exhibit 1.1
(a Delaware corporation)
[•] Shares of Common Stock
Dated: [•], 2012
(a Delaware corporation)
[•] Shares of Common Stock
[•], 2012
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Xxxxx Fargo Securities, LLC
As Representatives of the
several Underwriters listed
in Schedule A hereto
Incorporated
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Xxxxx Fargo Securities, LLC
As Representatives of the
several Underwriters listed
in Schedule A hereto
c/o Merrill Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Incorporated
Xxx Xxxxxx Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Nationstar Mortgage Holdings Inc., a Delaware corporation (the “Company”) and Nationstar
Mortgage LLC, a Delaware limited liability company (“Nationstar LLC”), confirm their respective
agreements with Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated (“Xxxxxxx Xxxxx”) and each of
the other Underwriters named in Schedule A hereto (collectively, the “Underwriters,” which term
shall also include any underwriter substituted as hereinafter provided in Section 10 hereof), for
whom you are acting as representatives (in such capacity, the “Representatives”), with respect to
(i) the sale by the Company and the purchase by the Underwriters, acting severally and not jointly,
of the respective numbers of shares of Common Stock, par value $0.01 per share, of the Company
(“Common Stock”) set forth in Schedules A and B hereto and (ii) the grant by the Company to the
Underwriters, acting severally and not jointly, of the option described in Section 2(b) hereof to
purchase all or any part of [•] additional shares of Common Stock. The aforesaid [•] shares of
Common Stock (the “Initial Securities”) to be purchased by the Underwriters and all or any part of
the [•] shares of Common Stock subject to the option described in Section 2(b) hereof (the “Option
Securities”) are herein called, collectively, the “Securities.”
The Company understands that the Underwriters propose to make a public offering of the
Securities as soon as the Representatives deem advisable after this Agreement has been executed and
delivered.
The Company was formed solely for the purpose of reorganizing the organizational structure of
FIF HE Holdings LLC, a Delaware limited liability company (“FIF”), and Nationstar LLC. As of the
date of this agreement: (i) FIF holds all of the outstanding equity interests of Nationstar LLC and
(ii) the Company has not conducted any activities other than those incident to its formation and
the preparation of the Registration Statement (as defined below). Prior to the Closing Time (as
defined below), FIF will transfer all of the equity interests of Nationstar LLC to two direct,
wholly-owned subsidiaries of the
Company (the “Restructuring”). Following the Restructuring and the consummation of the
transactions contemplated by this Agreement, the Company will be a holding company and will hold,
directly or indirectly, all outstanding shares of equity securities of Nationstar LLC.
For all purposes of this Agreement, Nationstar LLC and its subsidiaries shall be deemed to be
subsidiaries of the Company as of the date of this Agreement and at all times prior to the date of
this Agreement.
The Company and the Underwriters agree that up to [•] shares of the Initial Securities to be
purchased by the Underwriters (the “Reserved Securities”) shall be reserved for sale by the
Underwriters to certain persons designated by the Company (the “Invitees”), as part of the
distribution of the Securities by the Underwriters, subject to the terms of this Agreement, the
applicable rules, regulations and interpretations of the Financial Industry Regulatory Authority,
Inc. (“FINRA”) and all other applicable laws, rules and regulations. The Company solely
determined, without any direct or indirect participation by the Underwriters, the Invitees who will
purchase Reserved Securities (including the amount to be purchased by such persons) sold by the
Underwriters. To the extent that such Reserved Securities are not orally confirmed for purchase by
Invitees by 8:00 A.M. (New York City time) on the first business day after the date of this
Agreement, such Reserved Securities may be offered to the public as part of the public offering
contemplated hereby.
The Company has filed with the Securities and Exchange Commission (the “Commission”) a
registration statement on Form S-1 (No. 333-174246), including the related preliminary prospectus
or prospectuses, covering the registration of the sale of the Securities under the Securities Act
of 1933, as amended (the “1933 Act”). Promptly after execution and delivery of this Agreement, the
Company will prepare and file a prospectus in accordance with the provisions of Rule 430A (“Rule
430A”) of the rules and regulations of the Commission under the 1933 Act (the “1933 Act
Regulations”) and Rule 424(b) (“Rule 424(b)”) of the 1933 Act Regulations. The information
included in such prospectus that was omitted from such registration statement at the time it became
effective but that is deemed to be part of such registration statement at the time it became
effective pursuant to Rule 430A(b) is herein called the “Rule 430A Information.” Such registration
statement, including the amendments thereto, the exhibits thereto and any schedules thereto, at the
time it became effective, and including the Rule 430A Information, is herein called the
“Registration Statement.” Any registration statement filed pursuant to Rule 462(b) of the 1933 Act
Regulations is herein called the “Rule 462(b) Registration Statement” and, after such filing, the
term “Registration Statement” shall include the Rule 462(b) Registration Statement. Each
prospectus used prior to the effectiveness of the Registration Statement, and each prospectus that
omitted the Rule 430A Information that was used after such effectiveness and prior to the execution
and delivery of this Agreement, is herein called a “preliminary prospectus.” The final prospectus,
in the form first furnished to the Underwriters for use in connection with the offering of the
Securities, is herein called the “Prospectus.” For purposes of this Agreement, all references to
the Registration Statement, any preliminary prospectus, the Prospectus or any amendment or
supplement to any of the foregoing shall be deemed to include the copy filed with the Commission
pursuant to its Electronic Data Gathering, Analysis and Retrieval system or any successor system
(“XXXXX”).
As used in this Agreement:
“Applicable Time” means [__:00 P./A.M.], New York City time, on [•], 2012 or such other
time as agreed by the Company and Xxxxxxx Xxxxx.
“General Disclosure Package” means any Issuer General Use Free Writing Prospectuses
issued at or prior to the Applicable Time, the most recent preliminary prospectus that is
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distributed to investors prior to the Applicable Time and the information included on
Schedule C-1 hereto, all considered together.
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined
in Rule 433 of the 1933 Act Regulations (“Rule 433”), including without limitation any “free
writing prospectus” (as defined in Rule 405 of the 1933 Act Regulations (“Rule 405”))
relating to the Securities that is (i) required to be filed with the Commission by the
Company, (ii) a “road show that is a written communication” within the meaning of Rule
433(d)(8)(i), whether or not required to be filed with the Commission, or (iii) exempt from
filing with the Commission pursuant to Rule 433(d)(5)(i) because it contains a description
of the Securities or of the offering that does not reflect the final terms, in each case in
the form filed or required to be filed with the Commission or, if not required to be filed,
in the form retained in the Company’s records pursuant to Rule 433(g).
“Issuer General Use Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is intended for general distribution to prospective investors (other than a “bona fide
electronic road show,” as defined in Rule 433 (the “Bona Fide Electronic Road Show”)), as
evidenced by its being specified in Schedule C-2 hereto.
“Issuer Limited Use Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is not an Issuer General Use Free Writing Prospectus.
SECTION 1. Representations and Warranties.
(a) Representations and Warranties by the Company and Nationstar LLC. The Company and
Nationstar LLC, jointly and severally, represent and warrant to each Underwriter as of the date
hereof, the Applicable Time, the Closing Time and any Date of Delivery (as defined below), and
agrees with each Underwriter, as follows:
(i) Registration Statement and Prospectuses. Each of the Registration
Statement and any post-effective amendment thereto has become effective under the 1933 Act.
No stop order suspending the effectiveness of the Registration Statement or any
post-effective amendment thereto has been issued under the 1933 Act, no order preventing or
suspending the use of any preliminary prospectus or the Prospectus has been issued and no
proceedings for any of those purposes have been instituted or are pending or, to the
knowledge of the Company or Nationstar LLC, threatened by the Commission. The Company has
complied with each request (if any) from the Commission for additional information.
Each of the Registration Statement and any post-effective amendment thereto, at the
time it became effective, complied in all material respects with the requirements of the
1933 Act and the 1933 Act Regulations. Each preliminary prospectus, the Prospectus and any
amendment or supplement thereto, at the time each was filed with the Commission, complied in
all material respects with the requirements of the 1933 Act and the 1933 Act Regulations.
Each preliminary prospectus delivered by the Company to the Underwriters for use in
connection with this offering and the Prospectus was or will be identical to the
electronically transmitted copies thereof filed with the Commission pursuant to XXXXX,
except to the extent permitted by Regulation S-T.
(ii) Accurate Disclosure. Neither the Registration Statement nor any amendment
thereto, at its effective time, at the Closing Time or at any Date of Delivery, contained,
contains or will contain an untrue statement of a material fact or omitted, omits or will
omit to state a material fact required to be stated therein or necessary to make the
statements therein not
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misleading. As of the Applicable Time, neither (A) the General Disclosure Package nor
(B) any individual Issuer Limited Use Free Writing Prospectus, when considered together with
the General Disclosure Package, included, includes or will include an untrue statement of a
material fact or omitted, omits or will omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made,
not misleading. Neither the Prospectus nor any amendment or supplement thereto (including
any prospectus wrapper), as of its issue date, at the time of any filing with the Commission
pursuant to Rule 424(b), at the Closing Time or at any Date of Delivery, included, includes
or will include an untrue statement of a material fact or omitted, omits or will omit to
state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
The representations and warranties in this subsection shall not apply to statements in
or omissions from the Registration Statement (or any amendment thereto), the General
Disclosure Package, any Issuer Free Writing Prospectus or the Prospectus (or any amendment
or supplement thereto) made in reliance upon and in conformity with written information
furnished to the Company by any Underwriter through the Representatives expressly for use
therein. For purposes of this Agreement, the only information so furnished shall be the
information in the first paragraph under the heading “Underwriting—Commissions and
Discounts,” the information in the second, third and fourth paragraphs under the heading
“Underwriting—Price Stabilization, Short Positions and Penalty Bids” and the information
under the heading “Underwriting—Electronic Distribution” in each case contained in the
Prospectus (collectively, the “Underwriter Information”).
(iii) Issuer Free Writing Prospectuses. No Issuer Free Writing Prospectus
conflicts or will conflict with the information contained in the Registration Statement or
the Prospectus, and any preliminary or other prospectus deemed to be a part thereof that has
not been superseded or modified. The Company has made available a Bona Fide Electronic Road
Show in compliance with Rule 433(d)(8)(ii) such that no filing of any “road show” (as
defined in Rule 433(h)) is required in connection with the offering of the Securities.
(iv) Company Not Ineligible Issuer. At the time of filing the Registration
Statement and any post-effective amendment thereto, at the earliest time thereafter that the
Company or another offering participant made a bona fide offer (within the meaning of Rule
164(h)(2) of the 1933 Act Regulations) of the Securities, and at the date hereof, the
Company was not and is not an “ineligible issuer,” as defined in Rule 405, without taking
account of any determination by the Commission pursuant to Rule 405 that it is not necessary
that the Company be considered an ineligible issuer.
(v) Due Organization, Valid Existence and Good Standing. Each of the Company
and its subsidiaries has been duly organized, is validly existing and in good standing as a
limited liability company, limited partnership, corporation or other business entity under
the laws of its jurisdiction of organization and is duly qualified to do business and in
good standing as a foreign limited liability company, limited partnership, corporation or
other business entity in each jurisdiction in which its ownership or lease of property or
the conduct of its businesses requires such qualification, except where the failure to be so
qualified or in good standing could not, in the aggregate, reasonably be expected to have a
material adverse effect on the condition (financial or otherwise), results of operations,
members’ or stockholders’ equity, properties, business or prospects of the Company and its
subsidiaries taken as a whole (a “Material Adverse Effect”). Each of the Company and its
subsidiaries has all power and authority necessary to own or hold its properties and to
conduct the businesses in which it is engaged.
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(vi) Subsidiaries. The Company does not own or control, directly or indirectly,
any corporation, association or other entity other than Nationstar LLC’s ownership of
Nationstar Capital Corporation (“Nationstar Corp.”) and the subsidiaries listed on Schedule
D hereto. Nationstar Corp. has no subsidiaries. None of the subsidiaries of Nationstar LLC
(other than Nationstar Home Equity Loan Trust 2009-A, Nationstar Mortgage Advance
Receivables Trust 2010-ADV and Nationstar Residual, LLC) is a “significant subsidiary” (as
defined in Rule 405 under the Securities Act).
(vii) Capitalization. The Company has an authorized capitalization as set forth
in each of the Registration Statement, the General Disclosure Package and the Prospectus,
and all of the authorized, issued and outstanding shares of capital stock of the Company and
Nationstar LLC have been duly authorized and validly issued and are fully paid and
non-assessable. All of the issued and outstanding shares of capital stock or other equity
interests of each subsidiary of the Company have been duly authorized and validly issued,
are fully paid and non-assessable and are owned directly or indirectly by the Company, free
and clear of all liens, encumbrances, equities or claims, except for such liens,
encumbrances, equities or claims as could not, in the aggregate, reasonably be expected to
have a Material Adverse Effect.
(viii) Authorization and Description of Securities. The Securities to be
purchased by the Underwriters from the Company have been duly authorized for issuance and
sale to the Underwriters pursuant to this Agreement and, when issued and delivered by the
Company pursuant to this Agreement against payment of the consideration set forth herein,
will be validly issued and fully paid and non-assessable; and the issuance of the Securities
is not subject to the preemptive or other similar rights of any securityholder of the
Company. The Common Stock conforms in all material respects to all statements relating
thereto contained in the Registration Statement, the General Disclosure Package and the
Prospectus and such description conforms in all material respects to the rights set forth in
the instruments defining the same. No holder of Securities will be subject to personal
liability by reason of being such a holder.
(ix) Power and Authority. The Company and Nationstar LLC have all requisite
corporate power and authority to execute, deliver and perform its obligations under this
Agreement. This Agreement has been duly and validly authorized, executed and delivered by
the Company and Nationstar LLC.
(x) Absence of Violations, Defaults and Conflicts with this Agreement. The
execution, delivery and performance of this Agreement and the consummation of the
transactions, including the Restructuring, contemplated herein and in the Registration
Statement, the General Disclosure Package and the Prospectus (including the issuance and
sale of the Securities and the use of the proceeds from the sale of the Securities as
described therein under the caption “Use of Proceeds”) will not (i) conflict with or result
in a breach or violation of any of the terms or provisions of, impose any lien, charge or
encumbrance upon any property or assets of the Company or its subsidiaries, or constitute a
default under, any indenture, mortgage, deed of trust, loan agreement, license, lease or
other agreement or instrument to which the Company or its subsidiaries is a party or by
which the Company or its subsidiaries is bound or to which any of the property or assets of
the Company or its subsidiaries is subject, (ii) result in any violation of the provisions
of the charter or by-laws (or similar organizational documents) of the Company or its
subsidiaries, or (iii) result in any violation of any statute or any judgment, order,
decree, rule or regulation of any court or governmental agency or body having jurisdiction
over the Company or its subsidiaries or any of their properties or assets, except, with
respect to clauses (i) and (iii), conflicts or violations that would not reasonably be
expected to have a Material Adverse Effect.
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(xi) Absence of Further Requirements. No consent, approval, authorization or
order of, or filing, registration or qualification with, any court or governmental agency or
body having jurisdiction over the Company or its subsidiaries or any of their properties or
assets is required for the execution, delivery and performance by the Company or Nationstar
LLC of this Agreement, the application of the proceeds from the sale of the Securities as
described under “Use of Proceeds” in each of the Registration Statement, the General
Disclosure Package and the Prospectus and the consummation by the Company and Nationstar LLC
of the transactions contemplated hereby and thereby, including the Restructuring, except (A)
such as have been already obtained or as may be required under the 1933 Act, the 1933 Act
Regulations, the rules of the New York Stock Exchange, state securities or Blue Sky laws or
the rules of FINRA, (B) filings with the Secretary of State of Delaware of an amended and
restated certificate of incorporation, (C) such as have been obtained under the laws and
regulations of jurisdictions outside the United States in which the Reserved Securities were
offered and (D) such consents, approvals, authorizations or orders that would not, in the
aggregate, reasonably be expected to have a Material Adverse Effect.
(xii) Accuracy of Exhibits. There are no contracts or documents which are
required to be described in the Registration Statement, the General Disclosure Package or
the Prospectus or to be filed as exhibits to the Registration Statement which have not been
so described and filed as required.
(xiii) Financial Statements; Non-GAAP Financial Measures. The historical
financial statements (including the related notes and supporting schedules) included in the
Registration Statement, the General Disclosure Package and the Prospectus present fairly in
all material respects the financial condition, results of operations and cash flows of the
entities purported to be shown thereby, at the dates and for the periods indicated, and have
been prepared in conformity with accounting principles generally accepted in the United
States (“GAAP”) applied on a consistent basis throughout the periods involved except for any
annual year-end adjustment, the adoption of new accounting principles, and except as
otherwise noted therein. The supporting schedules, if any, present fairly in accordance
with GAAP the information required to be stated therein. The selected financial data and
the summary financial information included in the Registration Statement, the General
Disclosure Package and the Prospectus present fairly the information shown therein and have
been compiled on a basis consistent with that of the audited financial statements included
therein. Except as included therein, no historical or pro forma financial statements or
supporting schedules are required to be included in the Registration Statement, the General
Disclosure Package or the Prospectus under the 1933 Act or the 1933 Act Regulations. All
disclosures contained in the Registration Statement, the General Disclosure Package or the
Prospectus, regarding “non-GAAP financial measures” (as such term is defined by the rules
and regulations of the Commission) comply with Regulation G of the Securities Exchange Act
of 1934, as amended (the “1934 Act”) and Item 10 of Regulation S-K of the 1933 Act, to the
extent applicable.
(xiv) Independent Auditors. Ernst & Young, LLP, which have audited certain
financial statements of Nationstar LLC, the report of which appears in the Registration
Statement, the General Disclosure Package and the Prospectus and which have delivered the
initial letter referred to in Section 5(e) hereof, are independent auditors with respect to
the Company under Rule 101 of the American Institute of Certified Public Accounts’ Code of
Professional Conduct, and its related interpretation and ruling.
(xv) Accounting Controls. The Company and each of its subsidiaries maintain
effective internal control over financial reporting (as defined under Rule 13a-15 and 15d-15
under
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the rules and regulations of the Commission under the 1934 Act (the “1934 Act
Regulations”) and a system of internal accounting controls sufficient to provide reasonable
assurances that (A) transactions are executed in accordance with management’s general or
specific authorization; (B) transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP and to maintain accountability for assets; (C)
access to assets is permitted only in accordance with management’s general or specific
authorization; and (D) the recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with respect to any
differences. Except as described in the Registration Statement, the General Disclosure
Package and the Prospectus, since the end of the Company’s most recent audited fiscal year,
there has been (1) no material weakness in the Company’s internal control over financial
reporting (whether or not remediated) and (2) no change in the Company’s internal control
over financial reporting that has materially affected, or is reasonably likely to materially
affect, the Company’s internal control over financial reporting.
(xvi) Critical Accounting Policies. The section entitled “Management’s
Discussion and Analysis of Financial Condition and Results of Operations — Critical
Accounting Policies and Use of Estimates” included in the Registration Statement, the
General Disclosure Package and the Prospectus accurately and fully describes (i) the
accounting policies that the Company believes are the most important in the portrayal of the
Company’s financial condition and results of operations and that require management’s most
difficult, subjective or complex judgments; (ii) the judgments and uncertainties affecting
the application of critical accounting policies; and (iii) the likelihood that materially
different amounts would be reported under different conditions or using different
assumptions and an explanation thereof.
(xvii) No Material Changes. Except as described in each of the Registration
Statement, the General Disclosure Package and the Prospectus, since the date of the latest
audited financial statements included in the Registration Statement, the General Disclosure
Package and the Prospectus, neither the Company nor its subsidiaries has (A) sustained any
material loss or interference with its business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor disturbance or dispute or
court or governmental action, order or decree, (B) issued or granted any securities (in case
of subsidiaries, other than any issuance or grant to the Company or to another subsidiary of
the Company in connection with the Restructuring), (C) incurred any material liability or
obligation, direct or contingent, other than liabilities and obligations that were incurred
in the ordinary course of business, (D) entered into any material transaction not in the
ordinary course of business, (E) declared or paid any dividend on its capital stock, and (F)
since such date, there has not been any change in the capital stock, limited partnership or
membership interests, as applicable, or short- or long-term debt of the Company or its
subsidiaries or any adverse change, or any development involving a prospective adverse
change, in or affecting the condition (financial or otherwise), results of operations,
members’ or stockholders’ equity, properties, management, business or prospects of the
Company or its subsidiaries, taken as a whole, in each case except as could not, in the
aggregate, reasonably be expected to have a Material Adverse Effect.
(xviii) Title to Property. Each of the Company and its subsidiaries has good
and marketable title in fee simple to all real property and good and marketable title to all
personal property owned by them, in each case free and clear of all liens, encumbrances and
defects, except such liens, encumbrances and defects as are described in the Registration
Statement, the General Disclosure Package and the Prospectus and such as do not materially
affect the value of such property and do not interfere with the use made and proposed to be
made of such property by the Company or its subsidiaries. All assets held under lease by the
Company or its subsidiaries are held by them under valid, subsisting and enforceable leases,
with such exceptions as do not
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interfere with the use made and proposed to be made of such assets by the Company or
its subsidiaries, except where the invalidity or unenforceability of any such lease could
not, in the aggregate, be reasonably expected to have a Material Adverse Effect.
(xix) Possession of Licenses and Permits. The Company and its subsidiaries
have such permits, licenses, patents, franchises, certificates of need and other approvals
or authorizations of governmental or regulatory authorities (“Permits”) as are necessary
under applicable law to own their properties and conduct their businesses in the manner
described in the Registration Statement, the General Disclosure Package and the Prospectus,
except for any of the foregoing that could not, singly or in the aggregate, reasonably be
expected to have a Material Adverse Effect or except as described in the Registration
Statement, the General Disclosure Package and the Prospectus. The Company and its
subsidiaries have fulfilled and performed all of their obligations with respect to the
Permits, and no event has occurred that allows, or after notice or lapse of time would
allow, revocation or termination thereof or results in any other impairment of the rights of
the holder or any such Permits, except for any of the foregoing that could not reasonably be
expected to have a Material Adverse Effect or except as described in the Registration
Statement, the General Disclosure Package and the Prospectus. Neither the Company nor its
subsidiaries has received notice of any revocation or modification of any such Permits or
has reason to believe that any such Permits will not be renewed in the ordinary course,
except for any of the foregoing that could not reasonably be expected to have a Material
Adverse Effect.
(xx) Possession of Intellectual Property. The Company and each of its
subsidiaries own or possess adequate rights to use all material patents, patent
applications, trademarks, service marks, trade names, trademark registrations, service xxxx
registrations, copyrights, licenses, know-how, software, systems and technology (including
trade secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures) necessary for the conduct of their respective businesses
and have no reason to believe that the conduct of their respective businesses will conflict
with, and have not received any notice of any claim of conflict with, any such rights of
others, except for such rights or conflicts that would not, singly or in the aggregate,
reasonably be expected to have a Material Adverse Effect.
(xxi) Absence of Proceedings. Except as described in the Registration
Statement, the General Disclosure Package and the Prospectus, there are no legal or
governmental proceedings pending to which the Company or its subsidiaries is a party or of
which any property or assets of the Company or its subsidiaries is the subject that could,
singly or in the aggregate, reasonably be expected to have a Material Adverse Effect or
could, singly or in the aggregate, reasonably be expected to have a material adverse effect
on the performance by the Company of its obligations under this Agreement or the
consummation of any of the transactions contemplated hereby, including the Restructuring.
To the knowledge of the Company or Nationstar LLC, no such proceedings are threatened by
governmental authorities or others.
(xxii) Authorization of Descriptions of Proceedings. The statements made in
the Registration Statement, the General Disclosure Package and the Prospectus under the
captions “Risk Factors—Risks Related to Our Business and Industry—Federal, state and local
laws and regulations could materially adversely affect our business, financial condition and
results of operations,” “Risk Factors—Risks Related to Our Business and Industry—Our
business would be adversely affected if we lose our licenses,” “Risk Factors—Risks Related
to Our Business and Industry—Changes to government mortgage modification programs could
adversely affect future incremental revenues,” “Risk Factors—Risks Related to Our Business
and Industry—The conservatorship of Xxxxxx Xxx and Xxxxxxx Mac and related efforts, along
with any changes in
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laws and regulations affecting the relationship between Xxxxxx Mae and Xxxxxxx Mac and
the U.S. federal government, could adversely affect our business and prospects” and
“Business—Regulation,” insofar as they purport to constitute summaries of the terms of
statutes, rules or regulations, legal or governmental proceedings or contracts and other
documents, constitute accurate summaries of the terms of such statutes, rules and
regulations, legal and governmental proceedings and contracts and other documents in all
material respects.
(xxiii) Insurance. The Company and each of its subsidiaries carry, or are
covered by, insurance from insurers of recognized financial responsibility in such amounts
and covering such risks as management believes is adequate in all material respects for the
conduct of their respective businesses and the value of their respective properties. All
policies of insurance of the Company and its subsidiaries are in full force and effect; the
Company and each of its subsidiaries are in compliance with the terms of such policies in
all material respects; and neither the Company nor any of its subsidiaries has received
notice from any insurer or agent of such insurer that material capital improvements or other
expenditures are required or necessary to be made in order to continue such insurance.
Neither the Company nor any such subsidiary has any reason to believe that it will not be
able to renew its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its business at a
cost that could not reasonably be expected to have a Material Adverse Effect.
(xxiv) Absence of Labor Dispute. Except as described in the Registration
Statement, the General Disclosure Package and the Prospectus, no labor disturbance by or
dispute with the employees of the Company or any of its subsidiaries exists or, to the
knowledge of the Company or Nationstar LLC, is imminent that could reasonably be expected to
have a Material Adverse Effect.
(xxv) Absence of Violations, Defaults and Conflicts by the Company and its
Subsidiaries Generally. Neither the Company nor any of its subsidiaries (i) is in
violation of its charter, certificate of formation, bylaws, limited partnership agreement or
limited liability company agreement (or similar organizational documents), (ii) is in
default, and no event has occurred that, with notice or lapse of time or both, would
constitute a default, in the due performance or observance of any term, covenant, condition
or other obligation contained in any indenture, mortgage, deed of trust, loan agreement,
license or other agreement or instrument to which it is a party or by which it is bound or
to which any of its properties or assets is subject, or (iii) is in violation of any statute
or any order, rule or regulation of any court or governmental agency or body having
jurisdiction over it or its property or assets or has failed to obtain any license, permit,
certificate, franchise or other governmental authorization or permit necessary to the
ownership of its property or to the conduct of its business, except in the case of clauses
(ii) and (iii), to the extent any such conflict, breach, violation or default could not,
singly or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(xxvi) Environmental Laws. Except as described in the Registration Statement,
the General Disclosure Package and the Prospectus, (i) there are no proceedings that are
pending, or to the knowledge of the Company or Nationstar LLC, threatened, against the
Company or any of its subsidiaries under any laws, regulations, ordinances, rules, orders,
judgments, decrees, permits or other legal requirements of any governmental authority,
including without limitation any international, foreign, national, state, provincial,
regional, or local authority, relating to pollution, the protection of human health or
safety, the environment, or natural resources, or to use, handling, storage, manufacturing,
transportation, treatment, discharge, disposal or release of hazardous or toxic substances
or wastes, pollutants or contaminants (“Environmental Laws”) in
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which a governmental authority is also a party, (ii) the Company and its subsidiaries
are not aware of any issues regarding compliance with Environmental Laws, including any
pending or proposed Environmental Laws, or liabilities or other obligations under
Environmental Laws or concerning hazardous or toxic substances or wastes, pollutants or
contaminants and (iii) none of the Company and its subsidiaries anticipates capital
expenditures relating to Environmental Laws, except to the extent any such proceedings,
compliance issues or capital expenditures could not, singly or in the aggregate, reasonably
be expected to have a Material Adverse Effect.
(xxvii) Payment of Taxes. The Company and its subsidiaries have filed all
federal, state, local and foreign tax returns required to be filed through the date hereof,
subject to permitted extensions, and have paid all taxes due, and no tax deficiency has been
determined adversely to the Company and its subsidiaries, nor does the Company or Nationstar
LLC have any knowledge of any tax deficiencies that have been, or could reasonably be
expected to be asserted against the Company and its subsidiaries, except any of the
foregoing, which could not, singly or in the aggregate, reasonably be expected to have a
Material Adverse Effect.
(xxviii) Employee Benefits. (A) Each “employee benefit plan” (within the
meaning of Section 3(3) of the Employee Retirement Security Act of 1974, as amended
(“ERISA”)) for which the Company or any member of its “Controlled Group” (defined as any
organization which is a member of a controlled group of corporations within the meaning of
Section 414 of the Internal Revenue Code of 1986, as amended (the “Code”)) would have any
liability (each a “Plan”) has been maintained in all material respects in compliance with
its terms and with the requirements of all applicable statutes, rules and regulations
including ERISA and the Code; (B) no prohibited transaction, within the meaning of Section
406 of ERISA or Section 4975 of the Code, has occurred with respect to any Plan excluding
transactions effected pursuant to a statutory or administrative exemption; (C) with respect
to each Plan subject to Title IV of ERISA (I) no “reportable event” (within the meaning of
Section 4043(c) of ERISA) has occurred or is reasonably expected to occur, (II) no
“accumulated funding deficiency” (within the meaning of Section 302 of ERISA or Section 412
of the Code), whether or not waived, has occurred or is reasonably expected to occur, (III)
the fair market value of the assets under each Plan exceeds the present value of all
benefits accrued under such Plan (determined based on those assumptions used to fund such
Plan), and (IV) neither the Company or any member of its Controlled Group has incurred, or
reasonably expects to incur, any liability under Title IV of ERISA (other than contributions
to the Plan or premiums to the PBGC in the ordinary course and without default) in respect
of a Plan (including a “multiemployer plan,” within the meaning of Section 4001(c)(3) of
ERISA); and (C) each Plan that is intended to be qualified under Section 401(a) of the Code
is so qualified and nothing has occurred, whether by action or by failure to act, which
would cause the loss of such qualification.
(xxix) No Restrictions on Dividends by Subsidiaries. No subsidiary of the
Company is currently prohibited, directly or indirectly, from paying any dividends to the
Company, from making any other distribution on such subsidiary’s capital stock, from
repaying to the Company any loans or advances to such subsidiary from the Company or from
transferring any of such subsidiary’s property or assets to the Company or any other
subsidiary of the Company, except as described in the Registration Statement, the General
Disclosure Package and the Prospectus.
(xxx) Statistical and Market-Related Data. The statistical and market-related
data included in the Registration Statement, the General Disclosure Package and the
Prospectus and the consolidated financial statements of Nationstar LLC and its subsidiaries
included in the Registration Statement, the General Disclosure Package and the Prospectus
are based on or derived from sources that the Company believes to be reliable in all
material respects and, to the
10
extent required, the Company has obtained the written consent to the use of such data
from such sources.
(xxxi) Investment Company Act. Each of the Company and Nationstar LLC is not,
and immediately after giving effect to the offer and sale of the Securities as herein
contemplated and the application of the proceeds therefrom as described under “Use of
Proceeds” in each of the Registration Statement, the General Disclosure Package and the
Prospectus, will not be, an “investment company” or a company “controlled” by an “investment
company” within the meaning of the Investment Company Act of 1940, as amended, and the rules
and regulations of the Commission thereunder.
(xxxii) Authorization of Description of Laws and Documents. The statements set
forth in each of the Registration Statement, the General Disclosure Package and the
Prospectus under the captions “Certain U.S. Federal Income and Estate Tax Considerations to
Non-U.S. Holders,” “Management’s Discussion and Analysis of Financial Conditions and Results
of Operations—Description of Certain Indebtedness,” and “Underwriting,” insofar as they
purport to summarize provisions of the laws and documents referred to herein, are accurate
summaries in all material respects.
(xxxiii) Registration Rights. Except as described in the Registration
Statement, the General Disclosure Package and the Prospectus, there are no contracts,
agreements or understandings between the Company or Nationstar LLC and any person granting
such person the right to require the Company to file a registration statement under the
Securities Act with respect to any securities of the Company (other than the registration
rights agreements entered into in connection with the Company’s 10.875% senior notes) owned
or to be owned by such person or to require the Company to include such securities in the
securities registered pursuant to the Registration Statement or in any securities being
registered pursuant to any other registration statement filed by the Company under the
Securities Act.
(xxxiv) No Broker. Neither the Company nor any of its subsidiaries is a party
to any contract, agreement or understanding with any person (other than this Agreement) that
could give rise to a valid claim against any of them or the Underwriters for a brokerage
commission, finder’s fee or like payment in connection with the offering and sale of the
Securities.
(xxxv) Absence of Manipulation. The Company and its affiliates have not taken,
directly or indirectly, any action designed to or that has constituted or that could
reasonably be expected to cause or result in the stabilization or manipulation of the price
of any security of the Company in connection with the offering of the Securities.
(xxxvi) Stabilization Safe Harbor. The Company and Nationstar LLC have not
taken any action or omitted to take any action (such as issuing any press release relating
to any Securities without an appropriate legend) which may result in the loss by the
Underwriter of the ability to rely on any stabilization safe harbor provided by the
Financial Services Authority under the Financial Services Markets Act of 2000.
(xxxvii) Foreign Corrupt Practices Act. Neither the Company nor any of its
subsidiaries, nor, to the knowledge of the Company or Nationstar LLC, any director, officer,
agent, employee or other person associated with or acting on behalf of the Company or any of
its subsidiaries, has (i) used any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expense relating to political activity; (ii) made any direct
or indirect unlawful payment to any foreign or domestic government official or employee from
corporate funds; (iii) violated or is in
11
violation of any provision of the Foreign Corrupt Practices Act of 1977; or (iv) made
any bribe, rebate, payoff, influence payment, kickback or other unlawful payment.
(xxxviii) Money Laundering Laws. The operations of the Company and its
subsidiaries are and have been conducted at all times in compliance with applicable (x)
financial recordkeeping and reporting requirements of the Currency and Foreign Transactions
Reporting Act of 1970, as amended, (y) money laundering statutes of all jurisdictions, and
rules and regulations thereunder and (z) related or similar rules, regulations or
guidelines, issued, administered or enforced by any governmental agency (collectively, the
“Money Laundering Laws”) and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company or any of its
subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of
the Company or Nationstar LLC, threatened.
(xxxix) OFAC. Neither the Company nor any of its subsidiaries nor, to the
knowledge of the Company or Nationstar LLC, any director, officer, agent or employee of the
Company or any of its subsidiaries is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”), the United
Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant
sanctions collectively (“Sanctions”); and the Company will not directly or indirectly use
the proceeds of the offering, or lend, contribute or otherwise make available such proceeds
to any subsidiary, joint venture partner or other person or entity, for the purpose of
financing the activities of any person currently subject to any Sanctions.
(xl) Sales of Reserved Securities. In connection with any offer and sale of
Reserved Securities outside the United States, each preliminary prospectus, the Prospectus,
any prospectus wrapper and any amendment or supplement thereto, at the time it was
distributed, complied and will comply in all material respects with any applicable laws or
regulations of foreign jurisdictions in which the same is distributed. The Company has not
offered, or caused the Representatives to offer, Reserved Securities to any person with the
specific intent to unlawfully influence (i) a customer or supplier of the Company or any of
its affiliates to alter the customer’s or supplier’s level or type of business with any such
entity or (ii) a trade journalist or publication to write or publish favorable information
about the Company or any of its affiliates, or their respective businesses or products.
(xli) Ratings. Nationstar LLC has ratings as a residential mortgage servicer of
“Above Average” by Standard and Poor’s and “RPS2” by Fitch, Inc.
(xlii) Restructuring. As of (i) the date of this Agreement, (a) the agreements
required to effectuate with the Restructuring have been duly authorized and when executed
and delivered, will be legally valid and binding and enforceable against the Company and
Nationstar LLC in accordance with their terms, except as the enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating
to or affecting creditor’s rights generally or by general equitable principles and (b) the
Company and Nationstar LLC will have filed all notices, reports, documents or other
information required to be filed by it pursuant to, and will have obtained any and all
authorizations, approvals, orders, consents, licenses, certificates, permits, registrations
or qualifications required to be obtained under, and will have otherwise complied with all
requirements of, all applicable laws in connection with the consummation of all of the
transactions in connection with the Restructuring described in the Registration Statement,
the General Disclosure Package and the Prospectus except, in each case, where such failure
would not result in a Material Adverse Effect, and (ii) the Closing Time, the
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Restructuring shall have been completed substantially in the manner described in the
Registration Statement, the General Disclosure Package and the Prospectus.
(b) Officer’s Certificates. Any certificate signed by any officer of the Company or any of
its subsidiaries delivered to the Representatives or to counsel for the Underwriters shall be
deemed a representation and warranty by the Company and Nationstar LLC to each Underwriter as to
the matters covered thereby.
SECTION 2. Sale and Delivery to Underwriters; Closing.
(a) Initial Securities. On the basis of the representations and warranties herein contained
and subject to the terms and conditions herein set forth, the Company agrees to sell to each
Underwriter, severally and not jointly, and each Underwriter, severally and not jointly, agrees to
purchase from the Company, at the price per share set forth in Schedule A, that proportion of the
number of Initial Securities set forth in Schedule B opposite the name of the Company, which the
number of Initial Securities set forth in Schedule A opposite the name of such Underwriter, plus
any additional number of Initial Securities which such Underwriter may become obligated to purchase
pursuant to the provisions of Section 10 hereof, bears to the total number of Initial Securities,
subject, in each case, to such adjustments among the Underwriters as the Representatives in their
sole discretion shall make to eliminate any sales or purchases of fractional shares.
(b) Option Securities. In addition, on the basis of the representations and warranties herein
contained and subject to the terms and conditions herein set forth, the Company hereby grants an
option to the Underwriters, severally and not jointly, to purchase up to an additional [•] shares
of Common Stock, as set forth in Schedule B, at the price per share set forth in Schedule A, less
an amount per share equal to any dividends or distributions declared by the Company and payable on
the Initial Securities but not payable on the Option Securities. The option hereby granted may be
exercised for 30 days after the date hereof and may be exercised in whole or in part at any time
from time to time upon notice by the Representatives to the Company setting forth the number of
Option Securities as to which the several Underwriters are then exercising the option and the time
and date of payment and delivery for such Option Securities. Any such time and date of delivery (a
“Date of Delivery”) shall be determined by the Representatives, but shall not be earlier than three
or later than seven full business days after the exercise of said option, nor in any event prior to
the Closing Time. If the option is exercised as to all or any portion of the Option Securities,
each of the Underwriters, acting severally and not jointly, will purchase that proportion of the
total number of Option Securities then being purchased which the number of Initial Securities set
forth in Schedule A opposite the name of such Underwriter bears to the total number of Initial
Securities, subject, in each case, to such adjustments as the Representatives in their sole
discretion shall make to eliminate any sales or purchases of fractional shares.
(c) Payment. Payment of the purchase price for, and delivery of certificates for, the Initial
Securities shall be made at the offices of Skadden, Arps, Slate, Xxxxxxx & Xxxx LLP, or at such
other place as shall be agreed upon by the Representatives and the Company, at 10:00 A.M. (New York
City time) on the third (fourth, if the pricing occurs after 4:30 P.M. (New York City time) on any
given day) business day after the date hereof (unless postponed in accordance with the provisions
of Section 10), or such other time not later than ten business days after such date as shall be
agreed upon by the Representatives and the Company (such time and date of payment and delivery
being herein called “Closing Time”).
In addition, in the event that any or all of the Option Securities are purchased by the
Underwriters, payment of the purchase price for, and delivery of such Option Securities shall be
made at
13
the above-mentioned offices, or at such other place as shall be agreed upon by the
Representatives and the Company, on each Date of Delivery as specified in the notice from the
Representatives to the Company.
Payment shall be made to the Company by wire transfer of immediately available funds to bank
accounts designated by the Company against delivery to the Representatives for the respective
accounts of the Underwriters of the Securities to be purchased by them. It is understood that each
Underwriter has authorized the Representatives, for its account, to accept delivery of, receipt
for, and make payment of the purchase price for, the Initial Securities and the Option Securities,
if any, which it has agreed to purchase. Each of the Representatives, individually (as agreed
among the Representatives) and not as representative of the Underwriters, may (but shall not be
obligated to) make payment of the purchase price for the Initial Securities or the Option
Securities, if any, to be purchased by any Underwriter whose funds have not been received by the
Closing Time or the relevant Date of Delivery, as the case may be, but such payment shall not
relieve such Underwriter from its obligations hereunder.
SECTION 3. Covenants of the Company. The Company covenants with each Underwriter as
follows:
(a) Compliance with Securities Regulations and Commission Requests. The Company, subject to
Section 3(b), will comply with the requirements of Rule 430A, and will notify the Representatives
as soon as practicable (i) when any post-effective amendment to the Registration Statement shall
become effective or any amendment or supplement to the Prospectus shall have been filed, (ii) of
the receipt of any comments from the Commission, (iii) of any request by the Commission for any
amendment to the Registration Statement or any amendment or supplement to the Prospectus or for
additional information, (iv) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or any post-effective amendment or of any order
preventing or suspending the use of any preliminary prospectus or the Prospectus, or of the
suspension of the qualification of the Securities for offering or sale in any jurisdiction, or of
the initiation or threatening of any proceedings for any of such purposes or of any examination
pursuant to Section 8(d) or 8(e) of the 1933 Act concerning the Registration Statement and (v) if
the Company becomes the subject of a proceeding under Section 8A of the 1933 Act in connection with
the offering of the Securities. The Company will effect all filings required under Rule 424(b) in
the manner and within the time period required by Rule 424(b) (without reliance on Rule 424(b)(8)),
and will take such steps as it deems necessary to ascertain promptly whether the form of prospectus
transmitted for filing under Rule 424(b) was received for filing by the Commission and, in the
event that it was not, it will promptly file such prospectus. The Company will make every
commercially reasonable effort to prevent the issuance of any stop order, prevention or suspension
and, if any such order is issued, to obtain the lifting thereof as soon as practicable.
(b) Continued Compliance with Securities Laws. The Company will comply with the 1933 Act and
the 1933 Act Regulations so as to permit the completion of the distribution of the Securities as
contemplated in this Agreement and in the Registration Statement, the General Disclosure Package
and the Prospectus. If at any time when a prospectus relating to the Securities is (or, but for
the exception afforded by Rule 172 of the 1933 Act Regulations (“Rule 172”), would be) required by
the 1933 Act to be delivered in connection with sales of the Securities, any event shall occur or
condition shall exist as a result of which it is necessary, in the opinion of counsel for the
Underwriters or for the Company, to (i) amend the Registration Statement in order that the
Registration Statement will not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading, (ii) amend or supplement the General Disclosure Package or the Prospectus in order that
the General Disclosure Package or the Prospectus, as the case may be, will not include any untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements therein not misleading in the light of the circumstances existing at the time it is
14
delivered to a purchaser or (iii) amend the Registration Statement or amend or supplement the
General Disclosure Package or the Prospectus, as the case may be, in order to comply with the
requirements of the 1933 Act or the 1933 Act Regulations, the Company will promptly (A) give the
Representatives notice of such event, (B) prepare any amendment or supplement as may be necessary
to correct such statement or omission or to make the Registration Statement, the General Disclosure
Package or the Prospectus comply with such requirements and, a reasonable amount of time prior to
any proposed filing or use, furnish the Representatives with copies of any such amendment or
supplement and (C) file with the Commission any such amendment or supplement; provided that the
Company shall not file or use any such amendment or supplement to which the Representatives or
counsel for the Underwriters shall reasonably object. The Company will furnish to the Underwriters
such number of copies of such amendment or supplement as the Underwriters may reasonably request.
(c) Delivery of Registration Statements. The Company has furnished or will deliver upon
request to the Representatives and counsel for the Underwriters, without charge, conformed copies
of the Registration Statement as originally filed and each amendment thereto (including exhibits
filed therewith or incorporated by reference therein and documents incorporated or deemed to be
incorporated by reference therein) and signed copies of all consents and certificates of experts,
and will also deliver to the Representatives, without charge, upon request, a conformed copy of the
Registration Statement as originally filed and each amendment thereto (without exhibits) for each
of the Underwriters. The copies of the Registration Statement and each amendment thereto furnished
to the Underwriters will be identical to the electronically transmitted copies thereof filed with
the Commission pursuant to XXXXX, except to the extent permitted by Regulation S-T.
(d) Delivery of Prospectuses. The Company has delivered to each Underwriter, without charge,
as many copies of each preliminary prospectus as such Underwriter reasonably requested, and the
Company hereby consents to the use of such copies for purposes permitted by the 1933 Act. The
Company will furnish to each Underwriter, without charge, during the period when a prospectus
relating to the Securities is (or, but for the exception afforded by Rule 172, would be) required
to be delivered under the 1933 Act, such number of copies of the Prospectus (as amended or
supplemented) as such Underwriter may reasonably request. The Prospectus and any amendments or
supplements thereto furnished to the Underwriters will be identical to the electronically
transmitted copies thereof filed with the Commission pursuant to XXXXX, except to the extent
permitted by Regulation S-T.
(e) Blue Sky Qualifications. The Company will use its reasonable best efforts, in cooperation
with the Underwriters, to qualify the Securities for offering and sale under the applicable
securities laws of such states and other jurisdictions (domestic or foreign) as the Representatives
may designate and to maintain such qualifications in effect so long as required to complete the
distribution of the Securities; provided, however, that the Company shall not be obligated to file
any general consent or otherwise subject itself to service of process or to qualify as a foreign
corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to
subject itself to taxation in respect of doing business in any jurisdiction in which it is not
otherwise so subject.
(f) Rule 158. The Company will timely file such reports pursuant to the 1934 Act as are
necessary in order to make generally available to its securityholders as soon as practicable an
earnings statement for the purposes of, and to provide to the Underwriters the benefits
contemplated by, the last paragraph of Section 11(a) of the 1933 Act.
(g) Use of Proceeds. The Company will use the net proceeds received by it from the sale of
the Securities in the manner specified in the Registration Statement, the General Disclosure
Package and the Prospectus under “Use of Proceeds.”
15
(h) Listing. The Company will use its reasonable best efforts to effect and maintain the
listing of the Common Stock (including the Securities) on the New York Stock Exchange.
(i) Restriction on Sale of Securities. During a period of 180 days from the date of the
Prospectus, the Company will not, without the prior written consent of Xxxxxxx Xxxxx, (i) directly
or indirectly, offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase or
otherwise transfer or dispose of any shares of Common Stock or any securities convertible into or
exercisable or exchangeable for Common Stock or file any registration statement under the 1933 Act
with respect to any of the foregoing or (ii) enter into any swap or any other agreement or any
transaction that transfers, in whole or in part, directly or indirectly, the economic consequence
of ownership of the Common Stock, whether any such swap or transaction described in clause (i) or
(ii) above is to be settled by delivery of Common Stock or such other securities, in cash or
otherwise. The foregoing sentence shall not apply to (A) the Securities to be sold hereunder, (B)
any shares of Common Stock issued by the Company upon the exercise of an option or warrant or the
conversion of a security outstanding on the date hereof and referred to in the Registration
Statement, the General Disclosure Package and the Prospectus, (C) any grants of stock options,
restricted stock or notional units to employees, directors or contractors pursuant to the terms of
any plan in effect as of the Closing Time, issuances of Common Stock pursuant to the exercise of
such options or the exercise of any other employee stock options outstanding on the date hereof,
(D) any shares of Common Stock issued pursuant to any non-employee director stock plan or dividend
reinvestment plan referred to in the Registration Statement, the General Disclosure Package and the
Prospectus, (E) any registration statement on Form S-8 under the 1933 Act with respect to the
foregoing clauses (B), (C) and (D), and (F) any issuance of options or shares pursuant to an
exchange for units of FIF HE Holdings LLC. Notwithstanding the foregoing, if (1) during the last
17 days of the 180-day restricted period the Company issues an earnings release or material news or
a material event relating to the Company occurs or (2) prior to the expiration of the 180-day
restricted period, the Company announces that it will issue an earnings release or becomes aware
that material news or a material event will occur during the 16-day period beginning on the last
day of the 180-day restricted period, the restrictions imposed in this clause (i) shall continue to
apply until the expiration of the 18-day period beginning on the date of the issuance of the
earnings release or the occurrence of the material news or material event, unless Xxxxxxx Xxxxx
waives, in writing, such extension.
(j) If Xxxxxxx Xxxxx, in its sole discretion, agree to release or waive the restrictions set
forth in a lock-up agreement described in Section 5(i) hereof for an officer or director of the
Company and provides the Company with notice of the impending release or waiver at least three
business days before the effective date of the release or waiver, the Company agrees to announce
the impending release or waiver by a press release substantially in the form of Exhibit C hereto
through a major news service at least two business days before the effective date of the release or
waiver.
(k) Reporting Requirements. The Company, during the period when the Prospectus is (or, but
for the exception afforded by Rule 172, would be) required to be delivered under the 1933 Act, will
file all documents required to be filed with the Commission pursuant to the 1934 Act within the
time periods required by the 1934 Act and 1934 Act Regulations. Additionally, the Company shall
report the use of proceeds from the issuance of the Shares as may be required under Rule 463 under
the 1933 Act.
(l) Issuer Free Writing Prospectuses. The Company agrees that, unless it obtains the prior
written consent of the Representatives, it will not make any offer relating to the Securities that
would constitute an Issuer Free Writing Prospectus or that would otherwise constitute a “free
writing prospectus,” or a portion thereof, required to be filed by the Company with the Commission
or retained by the Company under Rule 433; provided that the Representatives will be deemed to have
consented to the Issuer Free Writing Prospectuses listed on Schedule C-2 hereto and any “road show
that is a written
16
communication” within the meaning of Rule 433(d)(8)(i) that has been reviewed by the
Representatives. The Company represents that it has treated or agrees that it will treat each such
free writing prospectus consented to, or deemed consented to, by the Representatives as an “issuer
free writing prospectus,” as defined in Rule 433, and that it has complied and will comply with the
applicable requirements of Rule 433 with respect thereto, including timely filing with the
Commission where required, legending and record keeping. If at any time following issuance of an
Issuer Free Writing Prospectus there occurred or occurs an event or development as a result of
which such Issuer Free Writing Prospectus conflicted or would conflict with the information
contained in the Registration Statement, any preliminary prospectus or the Prospectus or included
or would include an untrue statement of a material fact or omitted or would omit to state a
material fact necessary in order to make the statements therein, in the light of the circumstances
existing at that subsequent time, not misleading, the Company will promptly notify the
Representatives and will promptly amend or supplement, at its own expense, such Issuer Free Writing
Prospectus to eliminate or correct such conflict, untrue statement or omission.
(m) Compliance with FINRA Rules. The Company hereby agrees that it will ensure that the
Reserved Securities will be restricted as required by FINRA or the FINRA rules from sale, transfer,
assignment, pledge or hypothecation for a period of three months following the date of this
Agreement. The Underwriters will notify the Company as to which persons will need to be so
restricted. At the request of the Underwriters, the Company will direct the transfer agent to
place a stop transfer restriction upon such securities for such period of time. Should the Company
release, or seek to release, from such restrictions any of the Reserved Securities, the Company
agrees to reimburse the Underwriters for any reasonable expenses (including, without limitation,
legal expenses) they incur in connection with such release.
SECTION 4. Payment of Expenses.
(a) Expenses. The Company will pay or cause to be paid all expenses incident to the
performance of its obligations under this Agreement other than to the extent described in Section
4(b) below, including (i) the preparation, printing and filing of the Registration Statement
(including financial statements and exhibits) as originally filed and of each amendment thereto,
(ii) the preparation, printing and delivery to the Underwriters of copies of each preliminary
prospectus, each Issuer Free Writing Prospectus and the Prospectus and any amendments or
supplements thereto and any costs associated with electronic delivery of any of the foregoing by
the Underwriters to investors, (iii) the preparation, issuance and delivery of the certificates for
the Securities to the Underwriters, if any, including any stock or other transfer taxes and any
stamp or other duties payable upon the sale, issuance or delivery of the Securities to the
Underwriters, (iv) the fees and disbursements of the Company’s counsel, accountants and other
advisors, (v) the qualification of the Securities under securities laws in accordance with the
provisions of Section 3(e) hereof, including filing fees and the reasonable and documented fees and
disbursements of counsel for the Underwriters in connection therewith and in connection with the
preparation of the Blue Sky Survey and any supplement thereto; provided, however, that all such
fees and disbursements shall not exceed $10,000 (vi) the fees and expenses of any transfer agent or
registrar for the Securities, (vii) the costs and expenses of the Company relating to investor
presentations on any “road show” undertaken in connection with the marketing of the Securities,
including without limitation, expenses associated with the production of road show slides and
graphics, reasonable and documented fees and expenses of any consultants engaged with the consent
of the Company in connection with the road show presentations, travel and lodging expenses of the
representatives of the Company (which, for the avoidance of doubt, does not include the
Underwriters for purposes of this Section 4(a)((vii)) and officers of the Company and any such
consultants, as well as one half (50%) of the cost of aircraft and other transportation chartered
in connection with the road show, (viii) the filing fees incident to, and the reasonable fees and
disbursements of counsel to the Underwriters in connection with, the review by FINRA of the terms
of the sale of the Securities, (ix) the fees and expenses incurred in connection with the listing
of the Securities on the New
17
York Stock Exchange and (x) all costs and expenses of the Underwriters, including the fees and
disbursements of counsel for the Underwriters, in connection with matters related to the Reserved
Securities which are designated by the Company for sale to Invitees. It is understood that, except
as provided in this Section 4(a), the Underwriters will pay all of their own costs and expenses,
including the fees of their counsel, stock transfer taxes on resale of any of the Securities by
them, and any advertising expenses connected with any offers they may make.
(b) Termination of Agreement. If this Agreement is terminated by the Representatives in
accordance with the provisions of Section 5, Section 9(a)(i) or (iii), or Section 11 hereof, the
Company shall reimburse the Underwriters for all of their reasonable and documented out-of-pocket
expenses that were actually incurred, including the reasonable fees and disbursements of counsel
for the Underwriters.
(c) Allocation of Expenses. The provisions of this Section shall not affect any agreement
that the Company may make for the sharing of such costs and expenses.
SECTION 5. Conditions of Underwriters’ Obligations. The obligations of the several
Underwriters hereunder are subject to the accuracy of the representations and warranties of the
Company contained herein or in certificates of any officer of the Company or any of its
subsidiaries delivered pursuant to the provisions hereof, to the performance by the Company of its
covenants and other obligations hereunder, and to the following further conditions:
(a) Effectiveness of Registration Statement; Rule 430A Information. The Registration
Statement, including any Rule 462(b) Registration Statement, has become effective and, at the
Closing Time, no stop order suspending the effectiveness of the Registration Statement or any
post-effective amendment thereto has been issued under the 1933 Act, no order preventing or
suspending the use of any preliminary prospectus or the Prospectus has been issued and no
proceedings for any of those purposes have been instituted or are pending or, to the Company’s
knowledge, threatened by the Commission; and the Company has complied with each request (if any)
from the Commission for additional information. A prospectus containing the Rule 430A Information
shall have been filed with the Commission in the manner and within the time frame required by Rule
424(b) without reliance on Rule 424(b)(8) or a post-effective amendment providing such information
shall have been filed with, and declared effective by, the Commission in accordance with the
requirements of Rule 430A.
(b) Opinion of Counsel for Company. At the Closing Time, the Representatives shall have
received the opinion, dated the Closing Time, of Xxxxxx Xxxxxxxx Xxxxx & Xxxxxxxx LLP, counsel for
the Company, in form and substance satisfactory to counsel for the Underwriters, together with
signed or reproduced copies of such letter for each of the other Underwriters to the effect set
forth in Exhibit A hereto.
(c) Opinion of Counsel for Underwriters. At the Closing Time, the Representatives shall have
received the opinion, dated the Closing Time, of Skadden, Arps, Slate, Xxxxxxx & Xxxx LLP, counsel
for the Underwriters, together with signed or reproduced copies of such letter for each of the
other Underwriters in form and substance satisfactory to the Underwriters. In giving such opinion
such counsel may rely, as to all matters governed by the laws of jurisdictions other than the law
of the State of New York, the General Corporation Law of the State of Delaware and the federal
securities laws of the United States, upon the opinions of counsel satisfactory to the
Representatives. Such counsel may also state that, insofar as such opinion involves factual
matters, they have relied, to the extent they deem proper, upon certificates of officers and other
representatives of the Company and its subsidiaries and certificates of public officials.
18
(d) Officers’ Certificate. At the Closing Time, there shall not have been, since the date
hereof or since the respective dates as of which information is given in the Registration
Statement, the General Disclosure Package or the Prospectus, any material adverse change in the
condition, financial or otherwise, or in the earnings, business affairs or business prospects of
the Company and its subsidiaries considered as one enterprise, whether or not arising in the
ordinary course of business, and the Representatives shall have received a certificate of the Chief
Executive Officer or the President of the Company, in their respective capacities as such officers
only, and of the chief financial or chief accounting officer of the Company, in their respective
capacities as such officers only, dated the Closing Time, to the effect that (i) there has been no
such material adverse change, (ii) the representations and warranties of the Company and Nationstar
LLC in this Agreement are true and correct with the same force and effect as though expressly made
at and as of the Closing Time, (iii) the Company and Nationstar LLC have complied with all
agreements and satisfied all conditions on its part to be performed or satisfied at or prior to the
Closing Time, and (iv) no stop order suspending the effectiveness of the Registration Statement
under the 1933 Act has been issued, no order preventing or suspending the use of any preliminary
prospectus or the Prospectus has been issued and no proceedings for any of those purposes have been
instituted or are pending or, to their knowledge, threatened by the Commission.
(e) Accountant’s Comfort Letter. At the time of the execution of this Agreement, the
Representatives shall have received from Ernst & Young LLP a letter, dated such date, in form and
substance satisfactory to the Representatives, together with signed or reproduced copies of such
letter for each of the other Underwriters containing statements and information of the type
ordinarily included in accountants’ “comfort letters” to underwriters with respect to the financial
statements and certain financial information contained in the Registration Statement, the General
Disclosure Package and the Prospectus.
(f) Bring-down Comfort Letter. At the Closing Time, the Representatives shall have received
from Ernst & Young LLP a letter, dated as of the Closing Time, to the effect that they reaffirm the
statements made in the letter furnished pursuant to subsection (e) of this Section, except that the
specified date referred to shall be a date not more than three business days prior to the Closing
Time.
(g) Approval of Listing. At the Closing Time, the Securities shall have been approved for
listing on the New York Stock Exchange, subject only to official notice of issuance.
(h) No Objection. FINRA has confirmed that it has not raised any objection with respect to
the fairness and reasonableness of the underwriting terms and arrangements relating to the offering
of the Securities.
(i) Lock-up Agreements. At the date of this Agreement, the Representatives shall have
received an agreement substantially in the form of Exhibit B hereto signed by the persons listed on
Schedule E hereto.
(j) Maintenance of Rating. Since the execution of this Agreement, there shall not have been
any decrease in or withdrawal of the rating of any securities of Nationstar LLC or any of its
subsidiaries by any “nationally recognized statistical rating organization” (as defined for
purposes of Rule 436(g) under the 0000 Xxx) or any notice given of any intended or potential
decrease in or withdrawal of any such rating or of a possible change in any such rating that does
not indicate the direction of the possible change.
(k) Restructuring. As of the Closing Time, the Restructuring shall have been consummated
substantially in the manner described in the Registration Statement, the General Disclosure Package
and the Prospectus.
19
(l) Conditions to Purchase of Option Securities. In the event that the Underwriters exercise
their option provided in Section 2(b) hereof to purchase all or any portion of the Option
Securities, the representations and warranties of the Company contained herein and the statements
in any certificates furnished by the Company and any of its subsidiaries hereunder shall be true
and correct as of each Date of Delivery and, at the relevant Date of Delivery, the Representatives
shall have received:
(i) Officers’ Certificate. A certificate, dated such Date of Delivery, of the
President or a Vice President of the Company and of the chief financial or chief accounting
officer of the Company confirming that the certificate delivered at the Closing Time
pursuant to Section 5(d) hereof remains true and correct as of such Date of Delivery.
(ii) Opinion of Counsel for Company. If requested by the Representatives, the
favorable opinion of Xxxxxx Xxxxxxxx Xxxxx & Xxxxxxxx LLP, counsel for the Company, in form
and substance satisfactory to counsel for the Underwriters, dated such Date of Delivery,
relating to the Option Securities to be purchased on such Date of Delivery and otherwise to
the same effect as the opinion required by Section 5(b) hereof.
(iii) Opinion of Counsel for Underwriters. If requested by the
Representatives, the favorable opinion of Skadden, Arps, Slate, Xxxxxxx & Xxxx LLP, counsel
for the Underwriters, dated such Date of Delivery, relating to the Option Securities to be
purchased on such Date of Delivery and otherwise to the same effect as the opinion required
by Section 5(c) hereof.
(iv) Bring-down Comfort Letter. If requested by the Representatives, a letter
from Ernst & Young LLP, in form and substance satisfactory to the Representatives and dated
such Date of Delivery, substantially in the same form and substance as the letter furnished
to the Representatives pursuant to Section 5(e) hereof, except that the “specified date” in
the letter furnished pursuant to this paragraph shall be a date not more than three business
days prior to such Date of Delivery.
(m) Additional Documents. At the Closing Time and at each Date of Delivery (if any) counsel
for the Underwriters shall have been furnished with such documents and opinions as they may require
for the purpose of enabling them to pass upon the issuance and sale of the Securities as herein
contemplated, or in order to evidence the accuracy of any of the representations or warranties, or
the fulfillment of any of the conditions, herein contained; and all proceedings taken by the
Company in connection with the issuance and sale of the Securities as herein contemplated shall be
satisfactory in form and substance to the Representatives and counsel for the Underwriters.
(n) Termination of Agreement. If any condition specified in this Section shall not have been
fulfilled when and as required to be fulfilled, this Agreement, or, in the case of any condition to
the purchase of Option Securities on a Date of Delivery which is after the Closing Time, the
obligations of the several Underwriters to purchase the relevant Option Securities, may be
terminated by the Representatives by notice to the Company at any time at or prior to Closing Time
or such Date of Delivery, as the case may be, and such termination shall be without liability of
any party to any other party except as provided in Section 4 and except that Sections 1, 6, 7, 8,
15, 16 and 17 shall survive any such termination and remain in full force and effect.
SECTION 6. Indemnification.
(a) Indemnification of Underwriters. The Company and Nationstar LLC, jointly and severally,
agree to indemnify and hold harmless each Underwriter, its affiliates (as such term is defined in
Rule 501(b) under the 1933 Act (each, an “Affiliate”)), its selling agents, officers, directors,
employees
20
and each person, if any, who controls any Underwriter within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act as follows:
(i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement (or any amendment thereto), including the Rule 430A
Information, or the omission or alleged omission therefrom of a material fact required to be
stated therein or necessary to make the statements therein not misleading or arising out of
any untrue statement or alleged untrue statement of a material fact included in any
preliminary prospectus, any Issuer Free Writing Prospectus, the General Disclosure Package
or the Prospectus (or any amendment or supplement thereto), or the omission or alleged
omission in any preliminary prospectus, Issuer Free Writing Prospectus or in the Prospectus
of a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading;
(ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to Section 6(e) below) any such
settlement is effected with the written consent of the Company;
(iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel chosen by Xxxxxxx Xxxxx), reasonably incurred in investigating,
preparing or defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever based upon any
such untrue statement or omission, or any such alleged untrue statement or omission, to the
extent that any such expense is not paid under (i) or (ii) above;
provided, however, that this indemnity provision shall not apply to any loss, liability, claim,
damage or expense to the extent arising out of any untrue statement or omission or alleged untrue
statement or omission made in the Registration Statement (or any amendment thereto), including the
Rule 430A Information, any Issuer Free Writing Prospectus, any preliminary prospectus, the General
Disclosure Package or the Prospectus (or any amendment or supplement thereto) in reliance upon and
in conformity with the Underwriter Information.
(b) Indemnification of Company, Directors and Officers. Each Underwriter severally agrees to
indemnify and hold harmless the Company, its directors, each of its officers who signed the
Registration Statement, and each person, if any, who controls the Company within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any and all loss, liability,
claim, damage and expense described in the indemnity contained in subsection (a) of this Section,
as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements
or omissions, made in the Registration Statement (or any amendment thereto), including the Rule
430A Information, any preliminary prospectus, the General Disclosure Package or the Prospectus (or
any amendment or supplement thereto) or any Issuer Free Writing Prospectus in reliance upon and in
conformity with the Underwriter Information.
(c) Actions against Parties; Notification. Each indemnified party shall give notice as
promptly as reasonably practicable to each indemnifying party of any action commenced against it in
respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party
shall not relieve such indemnifying party from any liability hereunder to the extent it is not
materially
21
prejudiced as a result thereof and in any event shall not relieve it from any liability which
it may have otherwise than on account of this indemnity agreement. In the case of parties
indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by
Xxxxxxx Xxxxx, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to
the indemnified parties shall be selected by the Company. An indemnifying party may participate at
its own expense in the defense of any such action; provided, however, that counsel to the
indemnifying party shall not (except with the consent of the indemnified party) also be counsel to
the indemnified party. In no event shall the indemnifying parties be liable for fees and expenses
of more than one counsel (in addition to any local counsel) separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar or related actions in
the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying
party shall, without the prior written consent of the indemnified parties, settle or compromise or
consent to the entry of any judgment with respect to any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in
respect of which indemnification or contribution could be sought under this Section 6 or Section 7
hereof (whether or not the indemnified parties are actual or potential parties thereto), unless
such settlement, compromise or consent (i) includes an unconditional release of each indemnified
party from all liability arising out of such litigation, investigation, proceeding or claim and
(ii) does not include a statement as to or an admission of fault, culpability or a failure to act
by or on behalf of any indemnified party.
(d) Settlement without Consent if Failure to Reimburse. If at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses
of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature
contemplated by Section 6(a)(ii) or settlement of any claim in connection with any violation
referred to in Section 6(e) effected without its written consent if (i) such settlement is entered
into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement at least 30 days
prior to such settlement being entered into and (iii) such indemnifying party shall not have
reimbursed such indemnified party in accordance with such request prior to the date of such
settlement.
(e) Indemnification for Reserved Securities. In connection with the offer and sale of the
Reserved Securities, the Company agrees to indemnify and hold harmless the Underwriters, their
Affiliates and selling agents and each person, if any, who controls any Underwriter within the
meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act, from and against any
and all loss, liability, claim, damage and expense (including, without limitation, any legal or
other expenses reasonably incurred in connection with defending, investigating or settling any such
action or claim), as incurred, (i) arising out of the violation of any applicable laws or
regulations of foreign jurisdictions where Reserved Securities have been offered, (ii) arising out
of any untrue statement or alleged untrue statement of a material fact contained in any prospectus
wrapper or other material prepared by or with the consent of the Company for distribution to
Invitees in connection with the offering of the Reserved Securities or caused by any omission or
alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, (iii) caused by the failure of any Invitee to pay for
and accept delivery of Reserved Securities which have been orally confirmed for purchase by any
Invitee by 8:00 A.M. (New York City time) on the first business day after the date of the Agreement
or (iv) related to, or arising out of or in connection with, the offering of the Reserved
Securities.
SECTION 7. Contribution. If the indemnification provided for in Section 6 hereof is
for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of
any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying
party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and
expenses incurred by such indemnified party, as incurred, (i) in such proportion as is appropriate
to reflect the relative benefits
22
received by the Company, on the one hand, and the Underwriters, on the other hand, from the
offering of the Securities pursuant to this Agreement or (ii) if the allocation provided by clause
(i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only
the relative benefits referred to in clause (i) above but also the relative fault of the Company,
on the one hand, and of the Underwriters, on the other hand, in connection with the statements or
omissions, or in connection with any violation of the nature referred to in Section 6(e) hereof,
which resulted in such losses, liabilities, claims, damages or expenses, as well as any other
relevant equitable considerations.
The relative benefits received by the Company, on the one hand, and the Underwriters, on the
other hand, in connection with the offering of the Securities pursuant to this Agreement shall be
deemed to be in the same respective proportions as the total net proceeds from the offering of the
Securities pursuant to this Agreement (before deducting expenses) received by the Company, on the
one hand, and the total underwriting discount received by the Underwriters, on the other hand, in
each case as set forth on the cover of the Prospectus, bear to the aggregate initial public
offering price of the Securities as set forth on the cover of the Prospectus.
The relative fault of the Company, on the one hand, and the Underwriters, on the other hand,
shall be determined by reference to, among other things, whether any such untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact relates to
information supplied by the Company or by the Underwriters and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission
or any violation of the nature referred to in Section 6(e) hereof.
The Company and the Underwriters agree that it would not be just and equitable if contribution
pursuant to this Section 7 were determined by pro rata allocation (even if the Underwriters were
treated as one entity for such purpose) or by any other method of allocation which does not take
account of the equitable considerations referred to above in this Section 7. The aggregate amount
of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred
to above in this Section 7 shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in investigating, preparing or defending against any litigation,
or any investigation or proceeding by any governmental agency or body, commenced or threatened, or
any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged
omission.
Notwithstanding the provisions of this Section 7, no Underwriter shall be required to
contribute any amount in excess of the underwriting commissions received by such Underwriter in
connection with the Shares underwritten by it and distributed to the public.
No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
0000 Xxx) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.
For purposes of this Section 7, each person, if any, who controls an Underwriter within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s
Affiliates, officers, directors, employees and selling agents shall have the same rights to
contribution as such Underwriter, and each director of the Company, each officer of the Company who
signed the Registration Statement, and each person, if any, who controls the Company within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to
contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to
this Section 7 are several in proportion to the number of Initial Securities set forth opposite
their respective names in Schedule A hereto and not joint.
23
SECTION 8. Representations, Warranties and Agreements to Survive. All
representations, warranties and agreements contained in this Agreement or in certificates of
officers of the Company or any of its subsidiaries submitted pursuant hereto, shall remain
operative and in full force and effect regardless of (i) any investigation made by or on behalf of
any Underwriter or its Affiliates or selling agents, any person controlling any Underwriter, its
officers or directors, any person controlling the Company or Nationstar LLC and (ii) delivery of
and payment for the Securities.
SECTION 9. Termination of Agreement.
(a) Termination. Xxxxxxx Xxxxx may terminate this Agreement, by notice to the Company, at any
time at or prior to the Closing Time (i) if there has been, in the judgment of Xxxxxxx Xxxxx, since
the time of execution of this Agreement or since the respective dates as of which information is
given in the Registration Statement, the General Disclosure Package or the Prospectus, any material
adverse change in the condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Company and its subsidiaries considered as one enterprise, whether or not
arising in the ordinary course of business, or (ii) if there has occurred any material adverse
change in the financial markets in the United States or the international financial markets, any
outbreak of hostilities or escalation thereof or other calamity or crisis or any change or
development involving a prospective change in national or international political, financial or
economic conditions, in each case the effect of which is such as to make it, in the judgment of
Xxxxxxx Xxxxx, impracticable or inadvisable to proceed with the completion of the offering or to
enforce contracts for the sale of the Securities, or (iii) if trading in any securities of the
Company has been suspended or materially limited by the Commission or the New York Stock Exchange,
or (iv) if trading generally on the NYSE Amex Equities or the New York Stock Exchange or in the
Nasdaq Global Market has been suspended or materially limited, or minimum or maximum prices for
trading have been fixed, or maximum ranges for prices have been required, by any of said exchanges
or by order of the Commission, FINRA or any other governmental authority, or (v) a material
disruption has occurred in commercial banking or securities settlement or clearance services in the
United States, or (vi) if a banking moratorium has been declared by either Federal or New York
authorities.
(b) Liabilities. If this Agreement is terminated pursuant to this Section, such termination
shall be without liability of any party to any other party except as provided in Section 4 hereof,
and provided further that Sections 1, 6, 7, 8, 15, 16 and 17 shall survive such termination and
remain in full force and effect.
SECTION 10. Default by One or More of the Underwriters. If one or more of the
Underwriters shall fail at the Closing Time or a Date of Delivery to purchase the Securities which
it or they are obligated to purchase under this Agreement (the “Defaulted Securities”), the
Representatives shall have the right, within 24 hours thereafter, to make arrangements for one or
more of the non-defaulting Underwriters, or any other underwriters, to purchase all, but not less
than all, of the Defaulted Securities in such amounts as may be agreed upon and upon the terms
herein set forth; if, however, the Representatives shall not have completed such arrangements
within such 24-hour period, then:
(i) if the number of Defaulted Securities does not exceed 10% of the number of
Securities to be purchased on such date, each of the non-defaulting Underwriters shall be
obligated, severally and not jointly, to purchase the full amount thereof in the proportions
that their respective underwriting obligations hereunder bear to the underwriting
obligations of all non-defaulting Underwriters, or
(ii) if the number of Defaulted Securities exceeds 10% of the number of Securities to
be purchased on such date, this Agreement or, with respect to any Date of Delivery which
occurs after the Closing Time, the obligation of the Underwriters to purchase, and of the
Company to
24
sell, the Option Securities to be purchased and sold on such Date of Delivery shall
terminate without liability on the part of any non-defaulting Underwriter.
No action taken pursuant to this Section shall relieve any defaulting Underwriter from
liability in respect of its default.
In the event of any such default which does not result in a termination of this Agreement or,
in the case of a Date of Delivery which is after the Closing Time, which does not result in a
termination of the obligation of the Underwriters to purchase and the Company to sell the relevant
Option Securities, as the case may be, either the (i) Representatives or (ii) the Company shall
have the right to postpone Closing Time or the relevant Date of Delivery, as the case may be, for a
period not exceeding seven days in order to effect any required changes in the Registration
Statement, the General Disclosure Package or the Prospectus or in any other documents or
arrangements. As used herein, the term “Underwriter” includes any person substituted for an
Underwriter under this Section 10.
SECTION 11. Default by the Company. If the Company shall fail at the Closing Time or
a Date of Delivery, as the case may be, to sell the number of Securities that it is obligated to
sell hereunder, then this Agreement shall terminate without any liability on the part of any
non-defaulting party; provided, however, that the provisions of Sections 1, 4, 6, 7, 8, 15, 16 and
17 shall remain in full force and effect. No action taken pursuant to this Section shall relieve
the Company from liability, if any, in respect of such default.
SECTION 12. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by any standard form
of telecommunication.
Notices to the Underwriters shall be directed to:
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated
Xxx Xxxxxx Xxxx
Xxx Xxxx, Xxx Xxxx 00000
attention of Syndicate Department with a copy to ECM Legal
Xxx Xxxxxx Xxxx
Xxx Xxxx, Xxx Xxxx 00000
attention of Syndicate Department with a copy to ECM Legal
Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: General Counsel, Fax: (000) 000-0000
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: General Counsel, Fax: (000) 000-0000
Credit Suisse Securities (USA) LLC
00 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: General Counsel
00 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: General Counsel
Xxxxx Fargo Securities, LLC
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Equity Syndicate Department
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Equity Syndicate Department
Notices to the Company shall be directed to:
25
Nationstar Mortgage Holdings Inc.
000 Xxxxxxxx Xxxxx, Xxxxxxxxxx, Xxxxx 00000
Attention: General Counsel
000 Xxxxxxxx Xxxxx, Xxxxxxxxxx, Xxxxx 00000
Attention: General Counsel
with a copy to:
Xxxxxx Xxxxxxxx Xxxxx & Xxxxxxxx LLP
Xxx Xxxxxxx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx XxXxxxxxxx;
Xxx Xxxxxxx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx XxXxxxxxxx;
SECTION 13. No Advisory or Fiduciary Relationship. Each of the Company and
Nationstar, severally and not jointly, acknowledges and agrees that (a) the purchase and sale of
the Securities pursuant to this Agreement, including the determination of the initial public
offering price of the Securities and any related discounts and commissions, is an arm’s-length
commercial transaction between the Company and Nationstar LLC, on the one hand, and the several
Underwriters, on the other hand, (b) in connection with the offering of the Securities and the
process leading thereto, each Underwriter is and has been acting solely as a principal and is not
the agent or fiduciary of the Company or any of its subsidiaries, or the its respective
stockholders, creditors, employees or any other party, (c) no Underwriter has assumed or will
assume an advisory or fiduciary responsibility in favor of the Company or Nationstar LLC with
respect to the offering of the Securities or the process leading thereto (irrespective of whether
such Underwriter has advised or is currently advising the Company or any of its subsidiaries on
other matters) and no Underwriter has any obligation to the Company or Nationstar LLC with respect
to the offering of the Securities except the obligations expressly set forth in this Agreement, (d)
the Underwriters and their respective affiliates may be engaged in a broad range of transactions
that involve interests that differ from those of each of the Company and Nationstar LLC, and (e)
the Underwriters have not provided any legal, accounting, regulatory or tax advice with respect to
the offering of the Securities and the Company and Nationstar LLC have consulted their own
respective legal, accounting, regulatory and tax advisors to the extent it deemed appropriate. The
Company and Nationstar LLC hereby waive any claims that the Company and Nationstar LLC may have
against the Underwriters with respect to any breach of fiduciary duty in connection with the
Securities.
SECTION 14. Parties. This Agreement shall each inure to the benefit of and be binding
upon the Underwriters, the Company and Nationstar LLC and their respective successors. Nothing
expressed or mentioned in this Agreement is intended or shall be construed to give any person, firm
or corporation, other than the Underwriters, the Company and Nationstar LLC and their respective
successors and the controlling persons and officers and directors referred to in Sections 6 and 7
and their heirs and legal representatives, any legal or equitable right, remedy or claim under or
in respect of this Agreement or any provision herein contained. This Agreement and all conditions
and provisions hereof are intended to be for the sole and exclusive benefit of the Underwriters,
the Company and Nationstar LLC and their respective successors, and said controlling persons and
officers and directors and their heirs and legal representatives, and for the benefit of no other
person, firm or corporation. No purchaser of Securities from any Underwriter shall be deemed to be
a successor by reason merely of such purchase.
SECTION 15. Trial by Jury. The Company (on its behalf and, to the extent permitted by
applicable law, on behalf of its stockholders and affiliates) and each of the Underwriters hereby
irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial
by jury in any legal proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby.
SECTION 16. GOVERNING LAW. THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE
ARISING UNDER OR RELATED TO THIS AGREEMENT SHALL
26
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF, THE STATE OF NEW YORK WITHOUT
REGARD TO ITS CHOICE OF LAW PROVISIONS.
SECTION 17. Consent to Jurisdiction; Waiver of Immunity. Any legal suit, action or
proceeding arising out of or based upon this Agreement or the transactions contemplated hereby
(“Related Proceedings”) shall be instituted in (i) the federal courts of the United States of
America located in the City and County of New York, Borough of Manhattan or (ii) the courts of the
State of New York located in the City and County of New York, Borough of Manhattan (collectively,
the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except
for proceedings instituted in regard to the enforcement of a judgment of any such court (a “Related
Judgment”), as to which such jurisdiction is non-exclusive) of such courts in any such suit, action
or proceeding. Service of any process, summons, notice or document by mail to such party’s address
set forth above shall be effective service of process for any suit, action or other proceeding
brought in any such court. The parties irrevocably and unconditionally waive any objection to the
laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and
unconditionally waive and agree not to plead or claim in any such court that any such suit, action
or other proceeding brought in any such court has been brought in an inconvenient forum.
SECTION 18. TIME. TIME SHALL BE OF THE ESSENCE OF THIS AGREEMENT. EXCEPT AS OTHERWISE
SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.
SECTION 19. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such counterparts shall
together constitute one and the same Agreement.
SECTION 20. Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.
27
If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Company and Nationstar LLC a counterpart hereof, whereupon this instrument, along
with all counterparts, will become a binding agreement among the Underwriters, the Company and
Nationstar LLC in accordance with its terms.
Very truly yours, NATIONSTAR MORTGAGE HOLDINGS INC. |
||||
By | ||||
Title: | ||||
NATIONSTAR MORTGAGE LLC |
||||
By | ||||
Title: | ||||
28
CONFIRMED AND ACCEPTED, as of the date first above written: |
||||
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX INCORPORATED |
||||
By | ||||
Authorized Signatory | ||||
CITIGROUP GLOBAL MARKETS INC. |
||||
By | ||||
Authorized Signatory | ||||
CREDIT SUISSE SECURITIES (USA) LLC |
||||
By | ||||
Authorized Signatory | ||||
XXXXX FARGO SECURITIES, LLC |
||||
By | ||||
Authorized Signatory | ||||
For themselves and as Representatives of the several other Underwriters named in Schedule A hereto.
29
SCHEDULE A
The initial public offering price per share for the Securities shall be $[•].
The purchase price per share for the Securities to be paid by the several Underwriters shall be
$[•], being an amount equal to the initial public offering price set forth above less $[•] per
share, subject to adjustment in accordance with Section 2(b) for dividends or distributions
declared by the Company and payable on the Initial Securities but not payable on the Option
Securities.
Number of | ||
Name of Underwriter | Initial Securities | |
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated |
||
Citigroup Global Markets Inc. |
||
Credit Suisse Securities (USA) LLC |
||
Xxxxx Fargo Securities LLC |
||
Xxxxx & Company LLC |
||
Barclays Capital Inc. |
||
X.X. Xxxxxx Securities LLC |
||
Xxxxx, Xxxxxxxx & Xxxxx, Inc. |
||
Sterne, Agee & Xxxxx, Inc. |
||
Total |
[•] | |
Sch A-1
SCHEDULE B
Number of Initial | Maximum Number of Option | |||||||
Securities to be Sold | Securities to Be Sold | |||||||
Total |
Sch B-1
SCHEDULE C-1
Pricing Terms
1. The Company is selling [•] shares of Common Stock.
2. The Company has granted an option to the Underwriters to purchase up to an additional [•] shares
of Common Stock.
3. The initial public offering price per share for the Securities shall be $[•].
Sch C-1
SCHEDULE C-2
Free Writing Prospectuses
Sch C-2
SCHEDULE D
Subsidiaries
Sch D-1
SCHEDULE E
List of Persons and Entities Subject to Lock-up
Xxxxxx Xxxxx
Xxx Xxxx
Xxxxxx X. Xxxxx
Xxxxxx X. Xxxxx
Xxx Xxxxxxx
Xxxxx Xxxxxxx
Xxxxxxx Xxxxxxx
Xxxxxxx X. Xxxxxx
Xxxx Xxxxx
Xxxx Xxxxxx
Xxxxxxx X. Xxxxxxx
FIF HE Holdings LLC
Xxx Xxxx
Xxxxxx X. Xxxxx
Xxxxxx X. Xxxxx
Xxx Xxxxxxx
Xxxxx Xxxxxxx
Xxxxxxx Xxxxxxx
Xxxxxxx X. Xxxxxx
Xxxx Xxxxx
Xxxx Xxxxxx
Xxxxxxx X. Xxxxxxx
FIF HE Holdings LLC
Sch E-1
Exhibit A
[FORM OF OPINION OF COMPANY’S COUNSEL
TO BE DELIVERED PURSUANT TO SECTION 5(b)]
TO BE DELIVERED PURSUANT TO SECTION 5(b)]
A-1
Exhibit B
[Form of lock-up from directors, officers or other stockholders pursuant to Section 5(i)]
[•], 2012
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Xxxxx Fargo Securities, LLC
As Representatives of the
several Underwriters listed
in Schedule A of the Underwriting Agreement
c/o Merrill Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Xxx Xxxxxx Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Incorporated
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Xxxxx Fargo Securities, LLC
As Representatives of the
several Underwriters listed
in Schedule A of the Underwriting Agreement
c/o Merrill Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Xxx Xxxxxx Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Re: | Proposed Public Offering by Nationstar Mortgage Holdings Inc. |
Dear Sirs:
The undersigned, a stockholder [and an officer and/or director] of Nationstar Mortgage
Holdings Inc., a Delaware corporation (the “Company”), understands that Xxxxxxx Lynch, Pierce,
Xxxxxx & Xxxxx Incorporated, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, and
Xxxxx Fargo Securities, LLC (collectively, the “Representatives”) propose to enter into an
Underwriting Agreement (the “Underwriting Agreement”) with the Company providing for the public
offering of shares (the “Securities”) of the Company’s common stock, par value $[•] per share (the
“Common Stock”). In recognition of the benefit that such an offering will confer upon the
undersigned as a stockholder [and an officer and/or director] of the Company, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
undersigned agrees with each underwriter to be named in the Underwriting Agreement that, during the
period beginning on the date hereof and ending on the date that is 180 days from the date of the
Underwriting Agreement (subject to extensions as discussed below), the undersigned will not,
without the prior written consent of Xxxxxxx Xxxxx, directly or indirectly, (i) offer, pledge,
sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to
sell, grant any option, right or warrant for the sale of, or otherwise dispose of or transfer any
shares of the Company’s Common Stock or any securities convertible into or exchangeable or
exercisable for Common Stock, whether now owned or hereafter acquired by the undersigned or with
respect to which the undersigned has or hereafter acquires the power of disposition (collectively,
the “Lock-Up Securities”), or exercise any right with respect to the registration of any of the
Lock-up Securities, or file or cause to be filed any registration statement in connection
therewith, under the Securities Act of 1933, as amended, or (ii) enter into any swap or any other
agreement or any transaction that transfers, in whole or in part, directly or indirectly, the
economic consequence of ownership of the Lock-Up Securities, whether any such swap or transaction
is to be settled by delivery of Common Stock or other securities, in cash or otherwise. If the
undersigned is an officer or director of the Company, the undersigned further agrees that the
foregoing provisions shall be equally applicable to any issuer-directed Securities the undersigned
may purchase in the offering.
B-1
Notwithstanding the foregoing, if the undersigned is FIF HE Holdings LLC, the undersigned may
(a) pledge the Lock-Up Securities as collateral in connection with any debt financing of FIF HE
Holdings LLC or any affiliate thereof or of Fortress Investment Group LLC without the prior written
consent of Xxxxxxx Xxxxx, and none of the provisions herein shall prevent collection on the
collateral subject to such pledge, and (b) may exchange, transfer or otherwise dispose of options
or shares of common stock pursuant to an exchange for units of FIF HE Holdings LLC, provided that
with respect to clause (b) Xxxxxxx Xxxxx receives a signed lock-up agreement for the balance of the
lockup period from each transferee.
If the undersigned is an officer or director of the Company, (1) Xxxxxxx Xxxxx agrees that, at
least three business days before the effective date of any release or waiver of the foregoing
restrictions in connection with a transfer of shares of the Common Stock, Xxxxxxx Xxxxx will notify
the Company of the impending release or waiver, and (2) the Company has agreed in the Underwriting
Agreement to announce the impending release or waiver by press release through a major news service
at least two business days before the effective date of the release or waiver. Any release or
waiver granted by Xxxxxxx Xxxxx hereunder to any such officer or director shall only be effective
two business days after the publication date of such press release. The provisions of this
paragraph will not apply if (i) the release or waiver is effected solely to permit a transfer not
for consideration and (ii) the transferee has agreed in writing to be bound by the same terms
described in this letter to the extent and for the duration that such terms remain in effect at the
time of the transfer.
Notwithstanding the foregoing, and subject to the conditions below, the undersigned may
transfer the Lock-Up Securities without the prior written consent of Xxxxxxx Xxxxx, provided that,
(1) Xxxxxxx Xxxxx receives a signed lock-up agreement for the balance of the lockup period from
each donee, trustee, distributee, or transferee, as the case may be, (2) any such transfer shall
not involve a disposition for value, (3) such transfers are not required to be reported with the
Securities and Exchange Commission on Form 4 in accordance with Section 16 of the Securities
Exchange Act of 1934, as amended, and (4) the undersigned does not otherwise voluntarily effect any
public filing or report regarding such transfers:
(i) | as a bona fide gift or gifts; or | ||
(ii) | to any trust for the direct or indirect benefit of the undersigned or the immediate family of the undersigned (for purposes of this lock-up agreement, “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin); or | ||
(iii) | as a distribution to limited partners or stockholders of the undersigned; | ||
(iv) | to funds managed by an affiliate of Fortress Investment Group LLC; or | ||
(v) | to the undersigned’s affiliates or to any investment fund or other entity controlled or managed by the undersigned. |
Furthermore, the undersigned may sell shares of Common Stock of the Company purchased by the
undersigned on the open market following the Public Offering if and only if (i) such sales are not
required to be reported in any public report or filing with the Securities Exchange Commission, or
otherwise and (ii) the undersigned does not otherwise voluntarily effect any public filing or
report regarding such sales.
Notwithstanding the foregoing, if:
B-2
(1) during the last 17 days of the 180-day lock-up period, the Company issues an earnings
release or material news or a material event relating to the Company occurs; or
(2) prior to the expiration of the 180-day lock-up period, the Company announces that it will
release earnings results or becomes aware that material news or a material event will occur during
the 16-day period beginning on the last day of the 180-day lock-up period,
the restrictions imposed by this lock-up agreement shall continue to apply until the expiration of
the 18-day period beginning on the issuance of the earnings release or the occurrence of the
material news or material event, as applicable, unless Xxxxxxx Xxxxx waives, in writing, such
extension.
The undersigned agrees that, prior to engaging in any transaction or taking any other action
that is subject to the terms of this lock-up agreement during the period from the date of this
lock-up agreement to and including the 34th day following the expiration of the initial
180-day lock-up period, it will give notice thereof to the Company and will not consummate such
transaction or take any such action unless it has received written confirmation from the Company
that the 180-day lock-up period (as may have been extended pursuant to the previous paragraph) has
expired.
The undersigned also agrees and consents to the entry of stop transfer instructions with the
Company’s transfer agent and registrar against the transfer of the Lock-Up Securities except in
compliance with the foregoing restrictions.
This agreement shall lapse and become null and void if (i) prior to entering the Underwriting
Agreement, the Company notifies Xxxxxxx Xxxxx in writing that the Company does not intend to
proceed with the offering of the Common Stock through Xxxxxxx Xxxxx and files an application to
withdraw the registration statement related to the offering, (ii) the Company, Nationstar Mortgage
LLC and Xxxxxxx Xxxxx have not entered into the Underwriting Agreement on or before [•], 2012, or
(iii) for any reason the Underwriting Agreement is terminated prior to the Closing Time (as defined
therein).
[REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]
B-3
Very truly yours, | ||||
Signature: | ||||
Print Name: | ||||
B-4
Exhibit C
FORM OF PRESS RELEASE
TO BE ISSUED PURSUANT TO SECTION 3(j)
TO BE ISSUED PURSUANT TO SECTION 3(j)
Nationstar Mortgage Holdings Inc. (the “Company”) announced today that BofA Xxxxxxx Xxxxx, the lead
book-running manager in the Company’s recent public sale of [•] shares of common stock, is
[waiving] [releasing] a lock-up restriction with respect to shares of the Company’s common stock
held by [certain officers or directors] [an officer or director] of the Company. The [waiver]
[release] will take effect on , 20 , and the shares may be sold on or after such date.
This press release is not an offer for sale of the securities in the United States or in any
other jurisdiction where such offer is prohibited, and such securities may not be offered or sold
in the United States absent registration or an exemption from registration under the United States
Securities Act of 1933, as amended.
C-1