Jefferies Capital Partners SC 13D NOVASTAR FINANCIAL / Jefferies Capital Partners IV ownership change

Exhibit 1

AGREEMENT REGARDING THE JOINT FILING OF

SCHEDULE 13D

______________________________

The undersigned hereby agree that the Amendment No. 2 to the statement on Schedule 13D to which this Agreement is annexed as Exhibit 1 is filed on behalf of each of them in accordance with the provisions of Rule 13d-1(k) under the Securities Exchange Act of 1934, as amended.

December 17, 2010
JEFFERIES CAPITAL PARTNERS IV LP JEFFERIES EMPLOYEE PARTNERS IV LLC JCP PARTNERS IV LLC
By:	JEFFERIES CAPITAL PARTNERS LLC, as Manager
By:	/s/ James L. Luikart
	Name:  James L. Luikart Title:  Managing Member
JCP IV LLC
By:	JEFFERIES CAPITAL PARTNERS LLC, as Managing Member
By:	/s/ James L. Luikart
	Name:  James L. Luikart Title:  Managing Member
JEFFERIES CAPITAL PARTNERS LLC
By:	/s/ James L. Luikart
	Name:  James L. Luikart Title:  Managing Member
/s/ Brian P. Friedman
Brian P. Friedman
/s/ James L. Luikart
James L. Luikart