Exhibit 10.30

 

NOVASTAR FINANCIAL, INC.

2005 COMPENSATION PLAN FOR IDEPENDENT DIRECTORS

As Amended Effective to January 1, 2005

 

The following sets forth the 2005 Compensation Plan for the members of the Board
of Directors (the “Board”) of Novastar Financial, Inc. (the “Company”) who are
not employees of the Company (“independent directors”), as approved by the
Compensation Committee of the Board in accordance with the Novastar Financial,
Inc. 2004 Incentive Stock Plan (“ISP”), which shall be effective for 2005 and
subsequent calendar years unless and until modified or terminated:

 

    Amount

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Payable

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Annual Retainer:

  $ 35,000    Paid at the beginning of each Quarter during the year of service

Daily Fee Per Board and/or Committee Meeting Attended in Person or by Electronic
Medium:

  $ 1,500    Paid at or within five business days after meeting

Annual Audit Committee Chairperson Retainer:

  $ 10,000    Paid at the beginning of each Quarter during the year of service

Annual Compensation Committee and Nominating and Corporate Governance Committee
Chairperson Retainer:

  $ 5,000    Paid at the beginning of each Quarter during the year of service

Initial Stock Options for New Independent Directors:

   
 
 
 
 
 
 
 
  Options to
purchase that
number of
Company
shares which
have fair
market value
of $100,000 at
grant date    Graded vesting over four years (25% per year), and exercisable in
accordance with the ISP

Annual Stock Options for Independent Directors:

   
 
 
  Options to
purchase 5,000
Company
shares    Immediate vesting, and exercisable in accordance with the ISP

 

In addition to the compensation described above, independent directors shall be
reimbursed for their reasonable out-of-pocket expenses incurred in attending
Board and committee meetings, payable within ten (10) business days after the
Company receives a written statement and documentation of such expenses.