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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (1798)	3/16/2007 4:27:25 AM
From: RockyBalboa	Respond to of 6370

NFI cash out and options granted on March 14 (closing price: $4.18) Item 5.02 - Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers On February 12, 2007, the Compensation Committee (the "Committee") of the Board of Directors of NovaStar Financial, Inc. (the "Company") reviewed and approved the payment of annual cash incentives for 2006 performance for the named executive officers, which individuals will be named executive officers listed in the Company's proxy statement for the 2007 Annual Meeting of Stockholders, under the NovaStar Financial, Inc. Executive Bonus Plan (the "Bonus Plan"), a copy of which is included as Exhibit 10.26 and is incorporated herein by reference. Each named executive officer's annual cash incentive opportunity for 2006 was set so that the named executive officer's target bonus was equal to 100% of his base salary if certain individual and Company performance objectives previously approved by the Committee were met, with an opportunity to earn up to 200% of his base salary. The Committee determined that the achievement of the performance objectives under the Bonus Plan resulted in a payout percentage as follows: Scott F. Hartman, Chairman of the Board and Chief Executive Officer - 74% of 2006 base salary; Gregory S. Metz, Senior Vice President and Chief Financial Officer - 66% of 2006 base salary; W. Lance Anderson, President and Chief Operating Officer - 74% of 2006 base salary; Michael L. Bamburg, Senior Vice President and Chief Investment Officer - 76% of 2006 base salary; and David A. Pazgan, President and Chief Executive Officer of NovaStar Mortgage, Inc., a subsidiary of the Company, - 76% of 2006 base salary. As a result, the following cash payments were made to the named executive officers: Mr. Hartman, $474,534; Mr. Metz, $167,888; Mr. Anderson, $474,534; Mr. Bamburg, $300,000; and Mr. Pazgan, $300,000. The Company will provide additional information regarding the compensation of the named executive officers for 2006 in the Company's proxy statement for the 2007 Annual Meeting of Stockholders, which is expected to be filed initially with the SEC in March 2007. On March 14, 2007, the Committee granted the named executive officers stock options and restricted stock pursuant to the NovaStar Financial, Inc. Long Term Incentive Plan and the NovaStar Financial 2004 Incentive Stock Plan. For Messrs. Hartman, Anderson, Bamburg and Pazgan, the Committee determined to grant each stock options with a SFAS 123(R) value equal to 50% of their 2006 base salary and restricted stock with a SFAS 123(R) value equal to 50% of their 2006 base salary. The Committee granted Mr. Metz stock options with a SFAS 123(R) value equal to 25% of his 2006 base salary and restricted stock with a SFAS 123(R) value equal to 25% of his 2006 base salary. The stock options have an exercise price equal to the price at which the Company's common stock was last sold on the NYSE on the date of grant and vest in equal annual installments over a period of four years. The restricted stock vests 100% on the fifth anniversary of the date of grant. The Committee has not established performance objectives or target opportunities for 2007 for the named executive officers under the Bonus Plan or the NovaStar Financial 2004 Incentive Stock Plan

To: RockyBalboa who wrote (1798)	3/16/2007 7:54:45 AM
From: RockyBalboa	Respond to of 6370

Slight correction. thought, The $40 Mio may be factured into the 150MM. But: Do the math. Lend sold 2.7B or 29% of its portfolio incurring a loss of 150M or a again 29% of the (reduced) book value of 520M (650 - the Aames impairment of 130). Amazing. And then suppose that the purchaser made sure he did not overpay, ie, he picked the better of the loans. I see what the market thinks: This was a distressed sale and it went through with some equity collateral damage. So under less or no stress it may be worth more. Good luck to all investors.