EXHIBIT 10.5Executive Compensation Arrangements • July 20th, 2007 • Novastar Financial Inc • Real estate investment trusts
Reference is made to (i) the Securities Purchase Agreement (the "Purchase Agreement"), dated as of the date hereof, among NovaStar Financial Inc., a Maryland corporation (the "Company"), Massachusetts Mutual Life Insurance Company, a mutual life insurance company ("MassMutual"), Jefferies Capital Partners IV L.P., Jefferies Employee Partners IV LLC and JCP Partners IV LLC (collectively, "Jefferies" and, together with MassMutual, collectively, "Investors"), (ii) the Registration Rights and Shareholders Agreement ("Registration Rights and Shareholders Agreement"), dated as of the date hereof, among the Company and the Investors, (iii) the Standby Purchase Agreement (the "Standby Purchase Agreement" and, together with the Purchase Agreement, the Registration Rights and Shareholders Agreement and the agreements contemplated thereby, the "Transaction Agreements"), dated as of the date hereof, among the Company and the Investors. Capitalized terms not otherwise defined herein shall have the
