Document:

Performance-Based Restricted Stock Units Award Agreement

 Exhibit 10.2 
 PERFORMANCE BASED RESTRICTED STOCK UNITS AWARD AGREEMENT 
 ON SEMICONDUCTOR 
 2000 STOCK INCENTIVE PLAN 
 (form
of performance based award for certain officers (for Robert Mahoney and John Nelson)) 
 ON Semiconductor Corporation, a Delaware
Corporation (“Company”), hereby grants to              (“Grantee”), a Participant in the ON Semiconductor Corporation (formerly known as SCG Holding Corporation)
2000 Stock Incentive Plan (“Plan”), as amended, a Performance Based Restricted Stock Units Award (“Award”) for Units (“Units”) representing shares of the Company’s Common Stock (“Stock”). The grant is
made effective as of the              (“Grant Date”). This Award is designated as a “Performance Based Restricted Stock Unit Award,” and as such is granted under
the Performance Share Award portion of the Plan. 
 A. The Board of Directors of the Company (“Board”) has adopted the Plan
as an incentive to retain members of the Board, and key employees, officers and consultants of the Company and to enhance the ability of the Company to attract new members of the Board, employees, officers and consultants whose services are
considered unusually valuable by providing an opportunity for them to have a proprietary interest in the success of the Company. 
 B.
Under the Plan, the Board has delegated its authority to administer the Plan to the Compensation Committee of the Board (“Compensation Committee”) 
 C. The Compensation Committee approved the granting of Units to the Grantee pursuant to the Plan to provide an incentive to the Grantee to focus on the long-term growth of the Company. 
 D. To the extent not specifically defined in this Performance Based Restricted Stock Units Award Agreement (“Agreement”), all
capitalized terms used in this Agreement shall have the meaning set forth in the Plan. 
 In consideration of the mutual covenants and
conditions hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Grantee agree as follows: 
 1. Grant of Units. Grantee is hereby granted a Performance Based Restricted Stock Units Award for
             Units, representing the right to receive the same number of shares of the Company’s Stock, subject to the terms and conditions in this Agreement. This Award is
granted pursuant to the Plan and its terms are incorporated by reference. 

 2. Vesting of Units and Related Information. 
 2.1 Vesting of Units. The Units will vest in accordance with, and only upon the attainment of, on or prior to the end of the Company’s
fiscal quarter in which the third anniversary of the Grant Date falls, the following performance measures (“Performance Measures): 
  

			
	 Percentage of PBRSUs
Eligible for Vesting
	  	 Performance Measures

	___%	  	Total consolidated revenues of at least $____ million and a gross margin percentage on total consolidated revenues of at least ___% in 2 consecutive quarters
	___%	  	Total consolidated revenues of at least $____ million and a gross margin percentage on total consolidated revenues of at least ___% in 2 consecutive quarters
	____%	  	Total consolidated revenues of at least $____ million and a gross margin percentage on total consolidated revenues of at least ___% in 2 consecutive quarters

 By way of example, if in two consecutive quarters the Company has total consolidated revenues of at least
$            million and for those two quarters has a total consolidated gross margin percentage of at least
            % (both Performance Measures as determined by the Compensation Committee), then             % of the
Units will become vested. 
 2.2. Total Consolidated Revenues. For purposes of the above vesting schedule, total consolidated
revenues shall mean total consolidated revenues of the Company for the performance period as reported in or derived from its Form 10-Q or Form 10-K (for the fourth quarter of any year) determined in accordance with U.S. generally accepted accounting
principles (“GAAP”) consistently applied; provided, however, if the Compensation Committee determines that an alternative method would be more appropriate to achieve the objectives of this Award then such method shall be
applied to determine total consolidated revenues for purposes of the above vesting schedule for any applicable performance period. 
 2.3
Gross Margin Percentage. For purposes of the above vesting schedule, the gross margin percentage on total consolidated revenues shall be calculated by dividing total consolidated gross margin by total consolidated revenues as
determined under 2.2 above. Total consolidated gross margin shall be calculated based on total consolidated revenues as determined under 2.2 above less total cost of revenues of the Company on a consolidated basis for the performance period
as reported in or derived from the Company’s Form 10-Q or Form 10-K (for the fourth quarter of any year) determined in accordance with GAAP consistently applied, but adjusted as set forth in the next sentence. Total cost of revenues of the
Company on a consolidated basis shall be adjusted to exclude the following, if applicable for the Company for a relevant performance period: (i) amortizing of purchased intangible assets; (ii) in-process research and development expense;
(iii) stock-based compensation expense from acquisitions; (iv) stock-based compensation expense determined in accordance with Statement of Financial Accounting Standards No. 123 (as revised and amended); (v) restructuring, asset
impairments and other, net; and (vi) expensing of the step up to fair market value of inventory from acquisitions. 
  

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 2.4 Adjustment to Performance Measures for Extraordinary and Other Items. In addition to
the adjustments in Sections 2.2 and 2.3, the Compensation Committee may adjust one or all of the Performance Measures, as it deems appropriate in its sole discretion, to exclude the effect (whether positive or negative) of any of the following types
of events or matters with respect to the Company occurring after the Grant Date of the Award: extraordinary items, other unusual or infrequent matters or events, or special items similar to the items that the Company excludes or includes (as
applicable) when calculating its “non-GAAP” earnings. Each such adjustment, if any, shall be made solely for the purpose of providing a consistent basis from period to period for the calculation of the Performance Measures in order to
prevent the dilution or enlargement of the Grantee’s rights with respect to the Award. 
 2.5 Final Determination of Performance
Measures Attained. When the Grantee believes that any of the performance criteria listed above have been achieved, the Grantee shall notify the Senior Vice President of Human Resources of the Company in writing of such achievement
(“Notice of Achievement”). Thereafter, the Compensation Committee will promptly review any such Notice of Achievement and either accept it or provide an explanation for non-acceptance in writing. The Grantee understands that such review by
the Compensation Committee may include an analysis of any and all parameters of the qualifying performance and that the Compensation Committee’s final determination to accept or not accept a Notice of Achievement for the relevant measurement
period shall be made in good faith and shall be final and binding on the Grantee. If a Notice of Achievement is accepted by the Compensation Committee as described above, then the relevant number of Units associated with such Notice of Achievement
shall become fully vested on the date the Compensation Committee has made such final determination. 
 3. Termination of Employment and
Leave of Absence. 
 3.1 General. Subject to the provisions of 3.2 below, if the Grantee terminates employment with the
Company for any reason (including upon a termination for Cause), any Units that are not vested under the schedule in 2 above will be canceled and forfeited as of the date of termination of employment or service. In no event shall any Units vest
after the Company’s fiscal quarter in which the third anniversary of the Grant Date falls. 
 3.2 Change in Control. If the
Company terminates the Grantee’s employment without Cause (including a deemed termination for Good Reason, if applicable for this Grantee) within two (2) years following a Change in Control, then the unvested portion of the Units shall
become immediately vested. 
 4. Time and Form of Payment. Subject to the provisions of the Agreement and the Plan, as the
number of Units vest under 2 above, the Company will deliver to the Grantee the same number of whole shares of Stock, rounded up or down. 
 5. Nontransferability. The Units granted by this Agreement shall not be transferable by the Grantee or any other person claiming through the Grantee, either voluntarily or involuntarily, except by will or the laws of descent
and distribution or as otherwise provided under Section 13.5 of the Plan. 
  

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 6. Adjustments. In the event of a stock dividend or in the event the Stock shall be changed
into or exchanged for a different number or class of shares of stock of the Company or of another corporation, whether through reorganization, recapitalization, stock split-up, combination of shares, merger or consolidation, there shall be
substituted for each such remaining share of Stock then subject to this Agreement the number and class of shares of stock into which each outstanding share of Stock shall be so exchanged, all as set forth in Section 14 of the Plan. 

7. Delivery of Shares. No shares of Stock shall be delivered under this Agreement until: (i) the Units vest in accordance with the
schedule set forth in 2 above; (ii) approval of any governmental authority required in connection with the Agreement, or the issuance of shares thereunder, has been received by the Company; (iii) if required by the Compensation Committee,
the Grantee has delivered to the Company documentation (in form and content acceptable to the Company in its sole and absolute discretion) to assist the Company in concluding that the issuance to the Grantee of any share of Stock under this
Agreement would not violate the Securities Act of 1933 or any other applicable federal or state securities laws or regulations; and (iv) the Grantee has complied with 13 below of this Agreement in order for the proper provision for required tax
withholdings to be made. 
 8. Securities Act. The Company shall not be required to deliver any shares of Stock pursuant to the
vesting of Units if, in the opinion of counsel for the Company, such issuance would violate the Securities Act of 1933 or any other applicable federal or state securities laws or regulations. 
 9. Voting and Other Stockholder Related Rights. The Grantee will have no voting rights or any other rights as a stockholder of the Company
(e.g., no rights to cash dividends) with respect to nonvested Units until the Units become vested and the Company issues shares of Stock to the Grantee. 
 10. Delivery of Documents and Notices. Any document relating to participation in the Plan or any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given
(except to the extent that this Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail address, if any, provided for the Grantee by the Company or a subsidiary, or upon
deposit in the U.S. Post Office or foreign postal service, by registered or certified mail, or with a nationally recognized overnight courier service, with postage and fees prepaid, addressed to the other party at the current address on file with
the Company or at such other address as such party may designate in writing from time to time to the other party. 
 10.1 Description of
Electronic Delivery. The Plan documents, which may include but do not necessarily include: the Plan, a grant notice, this Agreement, the Plan Prospectus, and any reports of the Company provided generally to the Company’s stockholders,
may be delivered to the Grantee electronically. In addition, the Grantee may deliver electronically any grant notice and the Agreement to the Company or to such third party 

  

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involved in administering the Plan as the Company may designate from time to time. Such means of electronic delivery may include but do not necessarily
include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other means of electronic delivery specified by the Company. 

10.2 Consent to Electronic Delivery. The Grantee acknowledges that the Grantee has read 10.1 above of this Agreement and consents to the
electronic delivery of the Plan documents and any grant notice, as described in 10.1. The Grantee acknowledges that he or she may receive from the Company a paper copy of any documents delivered electronically at no cost to the Grantee by contacting
the Company by telephone or in writing. The Grantee further acknowledges that the Grantee will be provided with a paper copy of any documents if the attempted electronic delivery of such documents fails. 
 11. Administration. This Agreement shall at all times be subject to the terms and conditions of the Plan and the Plan shall in all respects
be administered by the Compensation Committee in accordance with the terms of and as provided in the Plan. The Compensation Committee shall have the sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of
the majority of the Compensation Committee with respect thereto and to this Agreement shall be final and binding upon the Grantee and the Company. In the event of any conflict between the terms and conditions of this Agreement and the Plan, the
provisions of the Plan shall control. All questions of interpretation concerning any grant notice, this Agreement and the Plan shall be determined by the Compensation Committee. 
 12. Continuation of Employment. This Agreement shall not be construed to confer upon the Grantee any right to continue employment with the
Company and shall not limit the right of the Company, in its sole and absolute discretion, to terminate Grantee’s employment at any time. 
 13. Tax Withholding. Pursuant to Section 17.3 of the Plan, unless otherwise provided by the Compensation Committee prior to the vesting of shares as set forth in the next sentence, the Grantee shall satisfy any federal,
state, local or foreign employment or income taxes due upon the vesting of the Units (or otherwise) by having the Company withhold from those shares of Stock that the Grantee would otherwise be entitled to receive, a number of shares having a Fair
Market Value equal to the minimum statutory amount necessary to satisfy the Company’s applicable federal, state, local and foreign income and employment tax withholding obligation. In lieu of, and subject to, the above, the Compensation
Committee may also permit the Grantee to satisfy any federal, state, local, or foreign employment or income taxes due upon the vesting of shares of the Units (or otherwise) by: (i) personal check or other cash equivalent acceptable to the
Company; (ii) permitting the Grantee to execute a same day sale of Stock pursuant to procedures approved by the Company; or (iii) such other method as approved by the Compensation Committee, all in accordance with applicable Company
policies and procedures and applicable law. 
 14. Amendments. This Agreement may be amended only by a written agreement
executed by the Company and the Grantee. 
  

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 15. Integrated Agreement. Any grant notice, this Agreement and the Plan shall constitute
the entire understanding and agreement of the Grantee and the Company with respect to the subject matter contained herein or therein and supersedes any prior agreements, understandings, restrictions, representations, or warranties between the
Grantee and the Company with respect to such subject matter other than those as set forth or provided for herein or therein. To the extent contemplated herein or therein, the provisions of any grant notice and the Agreement shall survive any
settlement of the Award and shall remain in full force and effect. 
 16. Counterparts. Any grant notice and this Agreement may
be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 17. Governing Law. This Agreement shall be interpreted and administered under the laws of the State of Delaware. 
 18. Other. The Grantee represents that the Grantee has read and is familiar with the provisions of the Plan and this Agreement, and hereby accepts the Award subject to all of their terms and conditions. 
 IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its duly authorized representative and the Grantee has signed this Agreement as
of the date first written above. 
  

			
	ON SEMICONDUCTOR CORPORATION
		
	By:	 	 
		 	[NAME OF OFFICER]
		
	Its:	 	 
		 	
		
	By:	 	 
		 	(Grantee)

  

 6Confidential Settlement Term Sheet Agreement

 Exhibit 10.55 
 *PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT THAT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
 CONFIDENTIAL SETTLEMENT TERM SHEET AGREEMENT 
 The following are the binding, essential terms of a final settlement agreement between American Interbanc Mortgage LLC (“American Interbanc” or
“AIM”) and the NovaStar Entities (NovaStar Financial, Inc. (“NFI”), NovaStar Mortgage, Inc., NFI Holding Corp. and NovaStar Home Mortgage, Inc. (“NHMI”)). The parties shall have an obligation to negotiate in good faith
toward mutual execution of a longer-form definitive agreement containing the terms herein. If the parties are unable to achieve mutual execution of such a longer-form definitive agreement within seven (7) calendar days of mutual execution of
this Confidential Settlement Term Sheet Agreement (“Agreement”), this Agreement shall be the final, binding settlement agreement between the parties. 
  

	1.	Proceedings And Claims To Be Settled: 

  

	 	a.	The following matters are currently pending: 

 1.     A petition for involuntary bankruptcy filed against NHMI by AIM and two other alleged creditors, Lucy Fredich and Richard Burden (“Fredich and Burden”) in the U.S. Bankruptcy Court for the Western
District of Missouri, case no. 08-40245 (the “Involuntary”); 
 2.     An action by AIM against NHMI, and other
defendants, pending in the Superior Court of the State of California, County of Orange, as case no. 02CC04857 (“California Action”), in which a judgment has been entered for AIM and against NHMI, and other defendants (the
“Judgment”). 
 3.     Asserted claims by AIM against NovaStar Financial, Inc., NovaStar Mortgage, Inc.,
NovaStar Home Mortgage, Inc. and NFI Holding Corp. for alter-ego liability and fraudulent transfers (the “Alter-ego Claims”), the release of which the parties hereby acknowledge and agree constitutes good and valid consideration and more
than reasonably equivalent value in exchange for the obligations of the NovaStar Entities pursuant to this Agreement. (The NovaStar Entities dispute the Alter-ego Claims, and nothing in this Agreement is an admission of liability regarding such
claims.) 
 4.     NHMI’s appeal of the California Action, pending in the Court of Appeal of the State of
California, Fourth Judicial District, Division Three, as case no. G039165 (the “Appeal”). 
  

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 5.     An action by AIM against NHMI, pending in the Circuit Court of Jackson County,
Missouri, at Kansas City, as case no. 0716-CV28878 (“Kansas City Action”), to enforce the Judgment. 
 6.     A
judgment entered in favor of AIM against NHMI, and other defendants, in the Superior Court of the State of Delaware, County of Newcastle, judgment no. 08J-01528 J-24-454 (“Delaware Judgment”), to enforce the Judgment. 
 b.     Pursuant to an agreement between the parties in the Involuntary, more than $50,000 has been deposited into a separate account
of NHMI (the “Bankruptcy Account”). 
 c.     The parties now wish to settle all of the claims between AIM and
the NovaStar Entities, including those asserted and threatened to be asserted in the Involuntary, the California Action, the Kansas City Action, the Delaware Judgment, and the Appeal. 
  

	2.	Dismissals and Releases: 

 Upon mutual execution of
the longer-form settlement agreement (or of this Agreement, if the longer-form settlement agreement has not been executed within seven (7) calendar days of the date of this Agreement): 
 a.     The parties shall make a consensual or joint motion to dismiss the Involuntary, with both parties to bear their own fees and
costs in that action. AIM shall use its best efforts to obtain the written consent of Fredich and Burden to the dismissal. To the extent required by the Bankruptcy Court, NHMI agrees to cooperate and provide notice to all of NHMI’s identified
creditors of the pending motion to dismiss the involuntary petition. To the extent that the Court requires all of or any portion of the debts of NovaStar Home Mortgage, Inc. to its identified creditors (including Fredich and Burden) – up to a
maximum of $48,000 – be paid as a condition of the dismissal, the NovaStar Entities agree to satisfy those obligations such that the full amount ($50,000 or more) currently on deposit in NHMI’s Bankruptcy Account will be released to AIM.
To the extent necessary for the motion to dismiss the involuntary petition, the parties shall disclose the existence and terms of the settlement. 
 b.     The parties shall execute all documents necessary to (i) notify the California Court of Appeal of the settlement, (ii) extend the briefing schedule on appeal to accommodate satisfaction of the conditions
in Section 2.c. below, and (iii) dismiss the Appeal (each party to bear its own costs and fees) – after satisfaction of the conditions in Section 2.c. below. 
  

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 c.     Subject to subsections (i) through (iv) below, the parties shall
execute all documents necessary to (1) dismiss with prejudice the California Action as to NHMI only (and not as to any other named defendants in the California Action), the Kansas City Action, and the Delaware Judgment – *, (2) effect
notice of satisfaction of the Judgment in each jurisdiction in which AIM has filed, recorded, or sought to enforce the Judgment – *, and (3) effect the mutual releases referenced in Section 4 below (which include releases of the
Alter-ego Claims) – *. 
 *, the dismissals of the California Action, the Kansas City Action, and the Delaware Judgment shall be filed,
the satisfactions of the Judgment shall be recorded, and the mutual releases shall be delivered, upon the earliest to occur of: 
 (i)
July 1, 2010; 
 (ii) Delivery to AIM of a written waiver, executed by Wachovia, of any right Wachovia may have to file an involuntary
bankruptcy petition against NFI and any of the NovaStar Entities during the Back-end Period; 
 (iii) Delivery to AIM of a written extension,
executed by Wachovia, of the maturity date of NFI’s indebtedness to Wachovia until at least July 1, 2010; provided, however, that if (notwithstanding the extension of the maturity date of NFI’s indebtedness to Wachovia – and the
resulting dismissals of the California Action, the Kansas City Action, and the Delaware Judgment, and recordation of the satisfactions of the Judgment) Wachovia declares a default, commences to exercise its remedies against NFI or any of the
NovaStar Entities, and thereby causes a bankruptcy of NFI or any of the NovaStar Entities after delivery of the written extension but on or before the end of the Back-end Period, then the mutual releases in Section 4 below shall be rescinded
and the full, unpaid amount of AIM’s dismissed Judgment, including all accrued post-judgment interest and previously court-ordered attorneys’ fees and costs, shall be reinstated against NHMI and allowed as a claim against NHMI without
objection in the event of such a bankruptcy. To the extent AIM seeks to enforce such claim against the NovaStar Entities other than NHMI, however, such entities reserve their right to contest the claim on any basis other than that the claim is
invalid as to NHMI, and AIM reserves the right to assert its Alter Ego Claims against the NovaStar Entities in such event; or 
 (iv)
Delivery to AIM of a written document evidencing that NFI’s current indebtedness to Wachovia has been satisfied in full. 
  

	3.	Payments: 

 a.     The NovaStar
Entities shall cause TWO MILLION DOLLARS ($2,000,000), plus all monies in the Bankruptcy Account, in good and available 

  

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funds to be wired to AIM within ten (10) business days after notice of entry of dismissal of the Involuntary. 
 b.     If (and only if), between the date of this Agreement and June 30, 2010, inclusive (the “Back-end Period”),
NFI’s market capitalization has reached NINETY-FOUR MILLION FOUR HUNDRED THOUSAND DOLLARS ($94,400,000) or higher (the Back-end Condition), and all of the following conditions are satisfied, NFI shall pay FIVE MILLION FIVE HUNDRED THOUSAND
DOLLARS ($5,500,000) to AIM by wire transfer (the “Back-end Payment”): 
  

	 	(i)	 The Back-end Condition shall be satisfied if (and only if), during the Back-end Period, NFI’s average market capitalization is at least $94,400,000 over a
period of five (5) consecutive business days (the “Target Market Capitalization”). “NFI’s market capitalization” shall mean the number of shares of NFI’s outstanding common stock on a given business day multiplied
by the volume-weighted average price of NFI’s common stock for that day. The “volume-weighted average price” shall mean the aggregate price traded for every transaction (price multiplied by number of shares traded) divided by the
total number of shares traded for the day. (The parties have agreed on the Target Market Capitalization figure based upon the current number of shares of NFI’s outstanding common stock being 9,440,000, and an agreement that if those outstanding
shares of common stock were trading at $10 per share, that would be an appropriate economic level at which to trigger the Back-end Payment.) NFI shall provide information reasonably necessary to verify the “volume-weighted average price”
upon reasonable request by AIM and within a reasonable time of such request. If NFI or its assets are sold during the Back-end Period such that $94,400,000 or more in net value is paid to the holders of NFI’s common stock as a result of the
sale, the Target Market Capitalization shall be deemed to have been reached, and NFI shall wire transfer the Back-end Payment immediately to AIM. The Target Market Capitalization shall be deemed to have been achieved in the event that, during the
Back-end Period, NFI takes any action (1) in bad faith, (2) that has the effect of artificially deflating NFI’s market capitalization below the Target Market Capitalization, and (3) for the sole purpose of avoiding the Back-end
Payment, and for no other purpose. If NFI is sold during the Back-end Period for less than $94,400,000, and ceases to be a public company, then NFI shall bind the purchaser and any successors or assigns to the obligation to make one of the following
contractual commitments at the time of purchase: (a) to pay immediately as part of the consideration for the acquisition of NFI the sum of $2,000,000 to AIM by wire transfer; or (b) to 

  

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assume the obligation to make the Back-end Payment in the event the value of the company reaches $94,400,000 at any time during the Back-end Period based
upon an independent valuation at AIM’s request by a mutually agreeable independent valuation company. The Parties shall split the cost of the independent valuation in the event AIM makes such a request. 

  

	 	(ii)	During the Back-end Period, neither AIM, John Michael Dannelley, nor Mary Dannelley owns or trades, or causes to be owned or traded, any shares of NFI’s stock, or takes any
action to artificially inflate NFI’s market capitalization. (AIM represents that neither AIM, John Michael Dannelley, nor Mary Dannelley has ever owned shares of NFI’s stock.) 

 c.     If all of the conditions in 2.b. above have not been satisfied on or before June 30, 2010, the Back-end Condition shall
be deemed not to have occurred, and the Back-end Payment obligation shall expire. 
  

	4.	Mutual Releases: 

 Upon receipt of the payments set
forth in Section 3.a. above and satisfaction of the conditions in Section 2.c. above, AIM, on the one hand, and the NovaStar Entities, on the other hand, hereby release and discharge each other from any and all claims raised or which could
have been raised by either party against the other in the California Action, the Kansas City Action, the Delaware Judgment, the Appeal, and/or the Judgment or related to the subject matter thereof. This release extends to and includes the Alter-ego
Claims. This release also extends to and includes claims by or against the parties’ predecessors-in-interest, successors-in-interest, and their current and former partners, affiliates, members, parents, subsidiaries, officers, directors and the
agents, employees, representatives and attorneys of the parties and the foregoing. The Parties further agree to waive the provisions of Civil Code §1542 (set forth below) and agree that this release shall also constitute a release of those
claims otherwise covered by such section: 
 “A general release does not extend to claims which the creditor does not know or suspect to
exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” 
 No party has made any representations or warranties regarding this release herein or any of the terms of this Agreement. 
  

	5.	* 

  

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	6.	Mediation Agreements Preserved: 

 Execution of this
Agreement shall not void or supersede agreements entered into by any of the parties in connection with the mediation between NFI and AIM, including the Confidentiality Agreement and Agreement Not To Trade Upon Non-Public Information. 
  

	7.	Confidentiality: 

 Except as may be necessary to
enforce the obligations in this Agreement or make disclosures to NFI’s shareholders and lenders and the NovaStar Entities’ auditors, accountants, and lawyers, the parties agree to keep the terms of this Agreement strictly confidential. The
parties intend for this Agreement to be protected by the mediation privilege as well as the rules governing inadmissibility of settlement communications. Nothing in this provision shall prohibit either party, including their officers,
representatives and attorneys, from disclosing the terms of this Agreement (i) pursuant to a court order or validly issued subpoena, and/or (ii) as required by securities law and other applicable law. 
  

	8.	Successors and Assigns: 

 The rights and
obligations of the Parties pursuant to this Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties. 
  

	9.	Governing Law: 

 This Agreement will be governed
and enforced in accordance with the laws of the State of California, without regard to its conflict of laws principles. The parties agree that any action for breach of this Agreement or to interpret or enforce this Agreement shall be brought in the
United States District Court for the Central District of California, Southern Division (Santa Ana Courthouse). 
  

	10.	Attorneys’ Fees: 

 In the event that any of
the parties files a legal action to interpret or enforce this Agreement, then the prevailing party shall be entitled to reasonable legal fees, expert fees and costs. 
  

	11.	Entire Agreement: 

 This Agreement constitutes the
entire agreement between the parties hereto pertaining to the subject matter hereof, fully supersedes any and all prior understandings, representations, warranties and agreements between the parties hereto, or any of them, pertaining to the subject
matter hereof, and may be modified only by written agreement signed by all of the parties hereto. No 

  

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express or implied promises, inducements or agreements have been made by any party to the other except as specifically and expressly set forth within this
Agreement. 
  

	12.	Counterparts: 

 This Agreement may be executed in
counterparts. Each counterpart shall be deemed an original, and when taken together with other signed counterparts, shall constitute one Agreement, which shall be binding upon and effective as to all the parties. Signatures by facsimile and/or
e-mail shall be deemed as effective as original signatures. 
  

	13.	Wire Instructions: 

 The payments to AIM specified
in this Agreement shall be made by wire transfer to AIM’s account as follows: * 
  
  
 Dated: March 17, 2008 
  
 AMERICAN INTERBANC MORTGAGE, LLC 

					
			
		 	By:	 	/s/ John M. Dannelley

					
			
		 	Name:	 	John M. Dannelley

					
			
		 	Title:	 	President of Managing Member

  
 NOVASTAR FINANCIAL, INC.

			
		
		 	/s/ Rodney E. Schwatken
		
		 	Rodney E. Schwatken

 Senior Vice President and Chief Financial Officer 
 (Signatures continued on following page) 
  

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 NOVASTAR MORTGAGE, INC. 

			
		
		 	/s/ Mathew R. Kaltenrieder
		
		 	Mathew R. Kaltenrieder

 Vice President 
  
 NFI HOLDING CORP. 

			
		
		 	/s/ Todd M. Phillips
		
		 	Todd M. Phillips

 Vice President 
  
 NOVASTAR HOME MORTGAGE, INC. 

			
		
		 	/s/ John A. Holtmann
		
		 	John A. Holtmann

 Vice President 
  

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