NOVASTAR FINANCIAL, INC. 2005 COMPENSATION PLAN FOR IDEPENDENT DIRECTORS As Amended Effective to January 1, 2005
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 | Payable | ||||
| 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.
