Document:

EX-10.2

EXHIBIT 10.2

CONSULTING AGREEMENT

This Consulting Agreement (“Consulting Agreement”) is entered into by and between New Century
Financial Corporation (the “Company”) and Patrick J. Flanagan (“Consultant”), as of the
1st day of July 2006.

I. ENGAGEMENT.

A. Provided that (i) Consultant has fully performed his obligations under that certain Amended
and Restated Employment Agreement dated December 27, 2005 (the “Employment Agreement”), (ii)
Consultant’s employment by the Company terminated at the close of business on June 30, 2006 (and
not before, unless an earlier termination was a result of a termination of employment by the
Company other than for Cause pursuant to the Employment Agreement), and (iii) Consultant has
executed and delivered the Supplemental Release attached as Exhibit B to the Employment Agreement
(and Consultant has not and does not in the future revoke such Supplemental Release (or the release
contained therein) within any revocation period afforded by applicable law), the Company hereby
engages Consultant as a Special Advisor to the Company, and Consultant hereby accepts such
engagement, upon the terms and conditions hereinafter set forth.

II. SERVICE.

A. Consultant shall provide such consulting services under this Consulting Agreement as the
Chief Executive Officer of the Company or his designee (the Chief Executive Officer or his
designee, as applicable, is referred to in this Consulting Agreement as the “CEO”) and
Consultant shall reasonably agree to from time to time. Such services may include
providing advice to and consultation with the Company or any of its affiliates, as
reasonably determined by the CEO from time to time.

B. Consultant agrees to devote sufficient time and energy to the business of the Company to
accomplish the projects assigned by the CEO.

C. For the term of this Consulting Agreement, Consultant’s Company contact shall be the
CEO.

III. COMPENSATION.

A. Consulting Fee. As consideration for Consultant’s performance of these
services, Company shall pay Consultant a fee of $76,445 per month which shall be paid by
the Company in monthly or semi-monthly payments during the Consulting Period.

B. Benefits. During the Consulting Period, Consultant shall be entitled to
participate in and be covered by the health and welfare benefit programs of the Company, as
such plans are in effect from time to time and on the same terms as are generally
applicable to senior executives of the Company. In the event that the Company for any
reason can’t or elects not to provide such coverage for any particular month during the
Consulting Period, it shall pay Consultant the amount it reasonably determines it would
cost to purchase substantially similar coverage on the open market.

C. Equity-Based Awards. During the Consulting Period, Consultant’s outstanding
grants of stock-based compensation will continue to vest and remain outstanding in
accordance with their current terms, but Consultant will not be entitled to receive any
additional grants. Upon the expiration or any earlier termination of the Consulting
Period, any unvested stock-based compensation shall thereupon terminate and any stock
options that are then vested will remain exercisable for a period of 30 days in accordance
with the current terms of such awards (subject, in all cases, to the expiration of the
award at the end of its maximum term and to any termination of the award in connection with
a change in control or similar event affecting the Company pursuant to the terms of the
awards).

IV. TERM.

A. Consulting Period. Unless otherwise mutually agreed by Consultant and Company
and except as provided in Sections IV.B and C below, the duration of Consultant’s
engagement (the “Consulting Period”) shall be for a period of thirty (30) months commencing
on July 1, 2006, and ending on December 31, 2008.

B. Death of Consultant. The Consulting Period shall automatically end on the date
of Consultant’s death, if earlier than December 31, 2008.

C. Limited Right to Terminate. The Company may terminate the Consulting Period on
a date earlier than December 31, 2008 in the event of any of the following:

(i) Consultant’s conviction of any felony (whether or not involving the Company) which
constitutes a crime of moral turpitude or which is punishable by imprisonment in a state or
federal correction facility;

(ii) Actions by Consultant during the term of the Employment Agreement or this
Consulting Agreement involving willful malfeasance or gross negligence upon the Company;

(iii) Consultant’s commission of an act of fraud or material dishonesty during the
term of the Employment Agreement or this Consulting Agreement upon the Company;

(iv) Consultant’s repeated, willful failure or refusal to perform his duties as
required by the Employment Agreement or this Consulting Agreement on an exclusive basis or
any other material breach by Consultant of his obligations under the Employment Agreement
or this Consulting Agreement; provided that termination pursuant to this subparagraph (iv)
shall not constitute valid termination unless Consultant shall have first received written
notice from the Board of Directors of the Company stating the nature of such failure or
refusal and affording Consultant at least ten (10) business days to correct the act or
omission complained of to the satisfaction of the Board of Directors; and

(v) Consultant’s willful violation during the term of the Employment Agreement or this
Consulting Agreement of any reasonable rule or regulation of the Board of Directors
applicable to Consultant; provided that termination pursuant to this subparagraph (v) shall
not constitute valid termination unless Consultant shall have first received written notice
from the Board of Directors of the Company stating the nature of such violation and
affording Consultant at least ten (10) business days to correct the act or omission
complained of to the satisfaction of the Board of Directors.

V. OWNERSHIP.

Consultant agrees that any software, hardware, equipment, or records, including all copies or
extracts of them which Consultant prepares, uses, or sees during the term of this Consulting
Agreement in relation to the performance of services hereunder shall be and remain the sole
property of Company or its customers.

A. Ownership of Copyrights. Consultant agrees that any work product,
documentation, and improvements made by Consultant during the term of this Consulting
Agreement that relate to Company’s business activities belong exclusively to Company or its
customers as works made for hire under the U.S. Copyright Law when such work is within the
scope of the services to be performed under this Agreement or if they were created using
any of Company’s facilities, materials, information, or resources.

VI. INDEPENDENT CONTRACTOR STATUS.

The parties intend Consultant to be an independent contractor in the performance of these
services. Consultant is not an employee, agent, partner, or joint venturer of or with Company.
Nothing in this Agreement shall be interpreted or construed as creating or establishing the
relationship of employer and employee between Consultant and Company or any employee or agent of
Consultant.

A. Consultant shall have the right to control and determine the method and means of
performing the above services; Company shall not have the right to control or determine
such method or means, being interested only in the results obtained, and having the general
right of inspection and supervision in order to secure the satisfactory completion of such
services.

B. Except as expressly provided in Section III.B as to certain continued health and welfare
benefits, Consultant shall not be entitled to participate in any vacation, medical,
retirement, bonus, incentive compensation, or other fringe benefit plan or program of
Company and shall not make claim of entitlement to any such employee program or benefit.

C. Consultant and Company agree that Consultant is not an employee for state or federal tax
purposes. Consultant shall be solely responsible for the payment of withholding taxes,
FICA, Medicare, disability, and other such tax deductions on any earnings or payments made
and Company shall withhold no such payroll tax deductions from any payments due. Consultant
agrees to defend, indemnify hold harmless Company from any claim or assessment by any
taxing authority arising from this paragraph.

D. Consultant is not entitled to worker’s compensation benefits or unemployment
compensation benefits provided by Company. Consultant shall be solely responsible for the
payment of his/her worker’s compensation, unemployment compensation, and other such
payments. Company will not pay for worker’s compensation for Consultant. Company will not
contribute to a state unemployment fund for Consultant, and Company will not pay the
federal unemployment tax for Consultant.

E. Consultant and Company agree that Consultant shall not be subject to the provisions of
any personnel policy or rules and regulations applicable to employees, as Consultant shall
fulfill his/her responsibility independent of and without supervisory control by Company.

VII. CONFIDENTIALITY. Consultant will not during the term of this Consulting Agreement or
thereafter at any time disclose, directly or indirectly, to any person or entity or use for
Consultant’s own benefit any Trade Secrets of the Company or any of its affiliates. The parties
agree that the following constitute “Trade Secrets”:

(a) information about the Company’s (or any Company affiliate’s) products, techniques,
processes, services, clients, employee relationships, employee compensation, marketing
strategy and/or business plans, information relative to client lists, business development
plans, business studies, projections, business practices and finances (individually or in
the aggregate), and highly confidential personal and financial information of the Company’s
(or any of its affiliate’s) customers;

(b) All computer programs and databases belonging to the Company (or any Company
affiliate), including, but not limited to:

	 	(i)	 	New Century’s AE Lounge;

	 	(ii)	 	New Century’s database applications for
integrating data for marketing, sales, and loan origination systems
into a real-time data system, including applications to map brokers
and applications for Account Executives to manage their territories;

	 	(iii)	 	Loan pricing models;

	 	(iv)	 	Automated systems for underwriting and
appraisal; and

	 	(v)	 	Information contained in New Century’s data
warehouse and marketing databases.

(c) All business practices and methodologies of the Company and each of its
affiliates, which include, but are not limited to:

	 	(i)	 	The flow used to process loans;

	 	(ii)	 	Organizational structure and practices within
the production groups;

	 	(iii)	 	Operational practices to ensure proper
handling of risks associated with appraisals and loan originations;
and

	 	(iv)	 	New Century’s flash report and other
informational reports designed to track the performance of New
Century’s products.

(d) All business studies performed by the Company (or any of its affiliates) to:

	 	(i)	 	Improve marketing strategies and techniques;
and

	 	(ii)	 	Improve market awareness and concentration.

(e) All broker lists and broker information, including, but not limited to:

	 	(i)	 	Identities of current and prospective
brokers;

	 	(ii)	 	Broker reports;

	 	(iii)	 	Broker contact information, including
identities of contact persons for brokers;

	 	(iv)	 	Broker fundings;

	 	(v)	 	Broker affiliations with Account Executives;

	 	(vi)	 	Broker business volume;

	 	(vii)	 	Broker pricing specials;

	 	(viii)	 	Preferences and requirements of brokers with respect to products,
services, terms, pricing information, and other matters; and

	 	(ix)	 	Broker status information.

(f) All loan characteristics reports for production by product and credit grade of the
Company (or any Company affiliate).

(g) All preferences of investors for purchasing loan pools.

(h) All strategies pertaining to Secondary Market execution.

(i) All employee lists and employee contact information (including, but not limited
to, positions held and home telephone numbers).

(j) All information regarding borrowers of the Company (or any Company affiliate).

(k) All sales and marketing programs and strategies of the Company (or any Company
affiliate).

(l) All information regarding the compensation structure for, and amounts paid to,
employees of the Company (or any Company affiliate).

(m) All information on the productivity of employees of the Company (or any Company
affiliate), including, but not limited to, information regarding the highest producing
Account Executives and/or Loan Officers.

(n) All account retention programs for Account Executives and/or Loan Officers of the
Company (or any Company affiliate).

(o) All documents and information concerning New Century’s Servicing Division
(“Servicing”), including, but not limited to:

	 	(i)	 	Servicing and collection software;

	 	(ii)	 	Knowledge of New Century’s Servicing Division
including, but not limited to, delinquency, collection, and
foreclosure statistics and procedures including training manuals,
dealings with customers, and strategies and techniques concerning
collections;

	 	(iii)	 	Loan characteristics for any of the loans
serviced by New Century;

	 	(iv)	 	30, 60, and 90-day delinquency numbers;

	 	(v)	 	Servicing contracts with third party
providers, including, but not limited to consumer reporting agencies,
broker lists for broker price opinions, real estate agents, and
appraisers;

	 	(vi)	 	Complaint and litigation specifics or
statistics; and

	 	(vii)	 	Asset management or foreclosure figures
including number of houses, days on the market, profitability or
resale figures.

(p) All documents and information concerning ratings agency and investor comments and
perception of the Company (and any of its affiliates) that is not publicly available in its
or their reports.

VIII. RETURN OF CONFIDENTIAL MATERIAL. Consultant shall promptly deliver to the Company
upon the termination of Consultant’s engagement with the Company, for any reason, or any time the
Company may so request, all memoranda, notes, records, reports, manuals, charts, and any other
documents of a confidential nature belonging to the Company, including all copies, wherever and
however located, including electronically, of such materials which Consultant may then possess or
have under Consultant’s control. Upon termination of Consultant’s engagement with the Company,
Consultant shall not take any document, data, or other material of any nature containing or
pertaining to the proprietary information of the Company.

IX. EXCLUSIVE CONSULTANCY. Consultant’s engagement by the Company under this Consulting
Agreement is an exclusive consultancy. Without limiting the generality of the foregoing, during
the term of this Consulting Agreement, Consultant shall not, without prior written approval of the
Company, directly or indirectly own an interest in, manage, operate, join, control, lend money or
render financial assistance to, as an officer, employee, partner, stockholder, consultant or
otherwise, any individual, partnership, firm, corporation or other business organization or entity
that, at such time directly competes with the Company or its affiliates in the business of,
underwriting, purchasing, securitizing, selling or servicing residential mortgage loans and lines
of credit (a “Competing Company”). Notwithstanding the foregoing, Consultant shall be entitled to
own up to 5% of the outstanding securities of any entity if such securities are registered under
Section 12(b) or (g) of the Securities Exchange Act of 1934, as amended, and, upon approval of the
Company’s Board of Directors, Consultant shall be entitled to purchase securities of a Competing
Company entity if such securities are offered to investors irrespective of any employment or other
participation in the entity by the investor. In addition, provided that such activities do not
interfere with Consultant’s performance of his obligations hereunder, Consultant may own an
interest in, manage, operate, join, control, lend money or render financial assistance to, as an
officer, employee, partner, stockholder, consultant or otherwise, any individual, partnership,
firm, corporation or other business organization or entity that at such time is not a Competing
Company.

X. PROHIBITION ON SOLICITATION OF CUSTOMERS. During the term of this Consulting Agreement
and for a period of one year thereafter (but in no event after December 31, 2008), Consultant shall
not, directly or indirectly, either for Consultant or for any other person or entity, solicit any
person or entity to terminate such person’s or entity’s contractual and/or business relationship
with the Company, nor shall Consultant interfere with or disrupt or attempt to interfere with or
disrupt any such relationship.

XI. PROHIBITION ON SOLICITATION OF THE COMPANY’S EMPLOYEES OR INDEPENDENT CONTRACTORS.
During the term of this Consulting Agreement and for a period of one year thereafter (but in no
event after December 31, 2008), Consultant will not directly or indirectly solicit any of the
Company’s employees, agents, or independent contractors to leave the employ of the Company for a
Competing Company.

XII. RIGHT TO INJUNCTIVE AND EQUITABLE RELIEF. Consultant’s obligations not to disclose or
use Confidential Information and to refrain from the solicitations described in sections VII, VIII,
X, and XI are of a special and unique character, which gives them a peculiar value. The Company
cannot be reasonably or adequately compensated in damages in an action at law in the event
Consultant breaches such obligations, and the breach of such obligations would cause irreparable
harm to the Company. Therefore, Consultant expressly agrees that the Company shall be entitled to
injunctive and other equitable relief without bond or other security in the event of such breach in
addition to any other rights or remedies which the Company may possess. Furthermore, the
obligations of Consultant and the rights and remedies of the Company under this section are
cumulative and in addition to, and not in lieu of, any obligations, rights, or remedies created by
applicable law relating to misappropriation or theft of trade secrets or confidential information.

XIII. COOPERATION. Consultant agrees that during the term of this Consulting Agreement and
thereafter, he shall respond to all inquiries of the Company about any matters concerning the
Company or its affairs that occurred or arose during Consultant’s prior employment by the Company
and/or during his Consulting engagement, and Consultant further agrees to cooperate fully with the
Company in investigating, prosecuting and defending any charges, claims, demands, liabilities,
causes of action, lawsuits or other proceedings by, against or involving the Company relating to
the period during which Consultant was employed by the Company or engaged as a Consultant by the
Company or relating to matters of which Consultant has or should have knowledge or information.
Consultant further agrees that, except as required by law, Consultant will at no time voluntarily
serve as a witness or offer written or oral testimony against the Company in conjunction with any
complaints, charges or lawsuits brought against the Company by or on behalf of any current or
former employees, or any governmental or administrative agencies and will provide the Company with
notice of any subpoena or other request for such information or testimony.

XIV. NON-DISPARAGEMENT. Consultant agrees that he shall not at any time (i) directly or
indirectly, make or ratify any statement, public or private, oral or written, to any person that
disparages, professionally, the Company or any of its affiliates, past and present, and each of
them, as well as its and their directors, officers, agents, attorneys, insurers, employees,
stockholders, and successors, past and present, and each of them, or (ii) make any statement or
engage in any conduct that has the purpose or effect of disrupting the business of the Company or
any of its affiliates. Neither the Company nor any of its executive officers or directors shall at
any time, directly or indirectly, make or ratify any statement, public or private, oral or written,
to any third-party that that disparages Consultant professionally. Directors, employees and
contracted consultants are not third-parties for this purpose.

XV. REMEDY FOR BREACH OF CERTAIN PROVISIONS. In the event Consultant breaches any
provision contained in Sections VII — XIII, and notwithstanding anything else to the contrary,
then, in addition to any other legal remedies the Company may have, the Company shall have the
right, in its sole discretion, to take any or all of the following actions: (a) terminate the
consulting fees contemplated by this Agreement and/or (b) terminate any and all stock options and
other equity-based awards theretofore granted to Consultant by the Company (to the extent not
theretofore exercised or paid, as applicable); provided, however, that if a cure is reasonably
possible in the circumstances, the Company shall provide Consultant with written notice of the
breach and shall not take any of the above actions unless Consultant fails to cure the breach
within ten (10) business days’ after such notice.

XVI. ASSUMPTION OF OBLIGATIONS. The Company will require any successor or assign (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company, by agreement in form and substance satisfactory to
Consultant, expressly, absolutely and unconditionally to assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to perform it if no
such succession or assignment had taken place. Any failure of the Company to obtain such
assumption and agreement in a written instrument prior to the effectiveness of any such succession
or assignment shall be a material breach of this Agreement. As used in this Agreement, “Company”
shall mean the Company as herein before defined and any successor or assign to its business and/or
assets as aforesaid which executes and delivers the agreement provided for in this Section or which
otherwise becomes bound by all the terms and provisions of this Agreement by operation of law.

XVII. BENEFICIAL INTERESTS. This Consulting Agreement shall inure to the benefit of and be
enforceable by Consultant’s personal and legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If Consultant should die while any amounts
are still payable to him or her hereunder, all such amounts, unless otherwise provided herein,
shall be paid in accordance with the terms of this Consulting Agreement to Consultant’s devisee,
legatee, or other designee or, if there be no such designee, to Consultant’s estate.

XVIII. NOTICE. For purposes of this Consulting Agreement, notices and all other
communications provided for in this Consulting Agreement shall be in writing and shall be deemed to
have been duly given when delivered or mailed by United States registered mail, return receipt
requested, postage prepaid, as follows:

	 	 	 	 	 
	If to the Company:
	 	New Century Financial Corporation

	 
	 	18400 Von Karman, Suite 1000
	 
	 	Irvine, CA 92612

	 
	 	Attn:  President

	If to Consultant:
	 	Mr. Patrick J. Flanagan

	 
	 	33 Rockrose
	 
	 	Aliso Viejo, CA  92656

or such other address as either party may have furnished to the other in writing in accordance
herewith, except that notices of change of address shall be effective only upon receipt.

XIX. NO WAIVERS. No provision of this Consulting Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing signed by
Consultant and the Company. No waiver by either party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision of this Consulting Agreement
to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.

XX. GOVERNING LAW. This Consulting Agreement shall be governed by and construed in
accordance with the laws of the State of California without regard to the principles of conflict of
laws.

XXI. SEVERABILITY OR PARTIAL INVALIDITY. The invalidity or unenforceability of any
provisions of this Consulting Agreement shall not affect the validity or enforceability of any
other provision of this Consulting Agreement, which shall remain in full force and effect.

XXII. COUNTERPARTS. This Consulting Agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original but all of which together will constitute one and
the same instrument.

XXIII. LEGAL FEES AND EXPENSES. Should any party institute any action or proceeding to
enforce this Consulting Agreement or any provision hereof, or for damages by reason of any alleged
breach of this Consulting Agreement or of any provision hereof, or for a declaration of rights
hereunder, the prevailing party in any such action or proceeding shall be entitled to receive from
the other party all costs and expenses, including reasonable attorneys’ fees, incurred by the
prevailing party in connection with such action or proceeding.

XXIV. ENTIRE AGREEMENT. This Consulting Agreement (including attached exhibits)
constitutes the entire agreement of the parties and supersedes all prior written or oral and all
contemporaneous oral agreements, understandings, and negotiations between the parties with respect
to the subject matter hereof, except that the parties acknowledge that they have in the past and
may in the future enter into stock option or other equity-based award agreements reflecting stock
option and any other equity-based awards to Consultant. This Consulting Agreement is intended by
the parties as the final expression of their agreement with respect to such terms as are included
in this Consulting Agreement and may not be contradicted by evidence of any prior or
contemporaneous agreement. The parties further intend that this Consulting Agreement constitutes
the complete and exclusive statement of its terms and that no extrinsic evidence may be introduced
in any judicial proceeding involving this Consulting Agreement.

XXV. ASSIGNMENT. This Consulting Agreement and the rights, duties, and obligations
hereunder may not be assigned or delegated by any party without the prior written consent of the
other party and any such attempted assignment and delegation shall be void and be of no effect.
Notwithstanding the foregoing provisions of this Section XXV, the Company may assign or delegate
its rights, duties, and obligations hereunder to any person or entity which succeeds to all or
substantially all of the business of the Company through merger, consolidation, reorganization, or
other business combination or by acquisition of all or substantially all of the assets of the
Company; provided that such person assumes the Company’s obligations under this Agreement in
accordance with Section XVI.

XXVI. ARBITRATION. Any controversy arising out of or relating to this Consulting
Agreement, its enforcement or interpretation, or because of an alleged breach, default, or
misrepresentation in connection with any of its provisions, or any other controversy arising out of
Consultant’s engagement, including, but not limited to, any state or federal statutory claims,
shall be submitted to arbitration in Orange County, California, before a sole arbitrator selected
from Judicial Arbitration and Mediation Services, Inc., Orange County, California, or its successor
(“JAMS”), or if JAMS is no longer able to supply the arbitrator, such arbitrator shall be selected
from the American Arbitration Association, and shall be conducted in accordance with the provisions
of California Code of Civil Procedure §§ 1280 et seq. as the exclusive forum for the resolution of
such dispute; provided, however, that provisional injunctive relief may, but need not, be sought by
either party to this Consulting Agreement in a court of law while arbitration proceedings are
pending, and any provisional injunctive relief granted by such court shall remain effective until
the matter is finally determined by the Arbitrator. Final resolution of any dispute through
arbitration may include any remedy or relief which the Arbitrator deems just and equitable,
including any and all remedies provided by applicable state or federal statutes. At the conclusion
of the arbitration, the Arbitrator shall issue a written decision that sets forth the essential
findings and conclusions upon which the Arbitrator’s award or decision is based. Any award or
relief granted by the Arbitrator hereunder shall be final and binding on the parties hereto and may
be enforced by any court of competent jurisdiction. The parties acknowledge and agree that they
are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by
either of the parties against the other in connection with any matter whatsoever arising out of or
in any way connected with this Consulting Agreement or Consultant’s engagement. The parties agree
that the party compelling the arbitration shall be responsible for initial payment of the forum
costs of any arbitration hereunder, including the Arbitrator’s fee. Consultant and Company further
agree that in any proceeding to enforce the terms of this Agreement, the prevailing party shall be
entitled to its or his reasonable attorneys’ fees and costs, including forum costs associated with
the arbitration, incurred by it or him in connection with resolution of the dispute in addition to
any other relief granted. Notwithstanding this provision, the parties may mutually agree to
mediate any dispute prior to or following submission to arbitration.

[Continued on the next page.]

“Company”

NEW CENTURY FINANCIAL CORPORATION

By /s/ Brad A. Morrice

Brad A. Morrice

Its            Vice Chairman, President and COO

“Consultant”

PATRICK J. FLANAGAN

/s/ Patrick J. FlanaganEX-10.60

THIS MODIFICATION AND INCREASE TO DEED OF TRUST AND OTHER LOAN DOCUMENTS INCREASES THE MAXIMUM
PRINCIPAL AMOUNT SECURED BY THE DEED OF TRUST DESCRIBED BELOW BY $2,500,000, FROM $2,500,000 TO
$5,000,000. THIS INSTRUMENT IS SUBJECT TO RECORDATION TAX ON THE INCREASED AMOUNT OF SECURED
INDEBTEDNESS, WHICH IS $2,500,000

MODIFICATION AND INCREASE TO DEED OF

TRUST AND OTHER LOAN DOCUMENTS

THIS MODIFICATION AND INCREASE TO DEED OF TRUST AND OTHER LOAN DOCUMENTS, dated as of November
30, 2005 (the “Agreement”), is made by and among BANK OF CHARLES TOWN, a West Virginia
banking corporation (the “Bank” or the “Beneficiary”), CUISINE SOLUTIONS, INC., a
Delaware corporation (the “Borrower”), FOOD INVESTORS CORPORATION, a Delaware corporation
(the “Grantor”), and C. CHRISTOPHER GIRAGOSIAN, as sole acting trustee (the
“Trustee”).

     

NOTICE: THE FOLLOWING IS PROVIDED SOLELY TO COMPLY WITH THE PROVISIONS OF SECTION 55-58.2 OF
THE CODE OF VIRGINIA OF 1950, AS AMENDED, AND SHALL REPLACE THE LEGEND ON THE FIRST PAGE OF THE
DEED OF TRUST DESCRIBED BELOW:

THIS IS A CREDIT LINE DEED OF TRUST.

The name of the noteholder secured hereby is Bank of Charles Town. The address to which
communications to the noteholder are to be sent is 111 East Washington Street, Charles Town, West
Virginia 25414, Attention: David W. Irvin. The maximum aggregate amount of principal secured
hereby at any time is Five Million and no/100 Dollars ($5,000,000).

     

RECITALS

Pursuant to the terms and conditions of the Credit Agreement, dated as of June 25, 2004,
between the Borrower and the Bank (as amended, modified or supplemented from time to time, the
“Credit Agreement”), the Bank agreed to establish a $2,500,000 working capital line of
credit in favor of the Borrower (the “Line”). The obligation of the Borrower to repay the
Line is evidenced by the Line Note, dated as of June 25, 2004, in the principal amount of
$2,500,000, made by Borrower and payable to the order of Bank (the “Line Note”).

The Line and the Line Note are secured by(a) the Security Agreement, dated as of June 25,
2004, from the Borrower in favor of the Bank (as amended, modified or supplemented from time to
time, the “Security Agreement”), and (b) the Credit Line Deed of Trust, dated as of June 25, 2004,
from the Grantor to Kevin F. Hull and the Trustee, as trustees, and recorded in the land records of
Loudoun County, Virginia (the “Land Records”), on July 21, 2004, as Instrument Number
20040721-0075211, encumbering certain property located in Loudoun County, Virginia and described on
Exhibit “A” attached to the Deed of Trust (as amended, modified or supplemented from time to time,
the “Deed of Trust”). All capitalized terms used herein and not otherwise defined shall have the
same meanings as defined in the Credit Agreement and the Deed of Trust.

The Line Note, the Credit Agreement, the Security Agreement, the Deed of Trust and any other
loan document executed and delivered in connection with the Line or the Line Note, in evidence
thereof or as security therefor, shall be referred to as the “Loan Documents.”

The Borrower and the Grantor have requested that the Bank increase the maximum principal
amount of, the Line. The Bank has agreed to do so, subject to the terms and conditions of this
Agreement, which terms include the modification and increase of the Deed of Trust to secure the
Line, as modified and increased hereby. Accordingly, for valuable consideration, the receipt and
sufficiency of which are acknowledged, the Bank, the Borrower, the Grantor and the Trustee agree as
follows:

AGREEMENT

1. Incorporation of Recitals. The foregoing recitals to this Agreement are
incorporated in and made a part of this Agreement to the same extent and with the same effect as if
fully set forth herein.

2. Amendment and Restatement of Line Note. Contemporaneously herewith, the Borrower
shall execute and deliver to Bank the Amended and Restated Line Note, of even date herewith, made
by the Borrower and payable to the order of the Bank, in the principal amount of $5,000,000 (as
amended, modified, supplemented, extended, renewed or replaced from time to time, the “Amended
Line Note”), which Amended Line Note shall amend and restate the Line Note in its entirety.
Each reference in any Loan Document to the “Note” or the “Line Note” shall be deemed to be a
reference individually and collectively to the Amended Line Note, and all further amendments,
modifications, supplements, extensions, renewals or replacements of the Amended Line Note. The
effectiveness of this Agreement is conditioned upon the Bank’s receipt of the fully executed
Amended Line Note.

3. Modification of Credit Agreement. The Credit Agreement is amended as follows:

(a) Section 1.1(a) of the Credit Agreement is amended to read as follows:

“(a) Subject to the terms and conditions of this Agreement, the
Bank agrees to make advances under the Line to the Borrower from
time to time. The aggregate principal amount of advances under the
Line outstanding at any time shall not exceed the lesser of
$5,000,000 or the Borrowing Base (as defined below). Within this
limit, the Borrower may borrow, repay and reborrow until September
1, 2006 (as extended from time to time in accordance with the
provisions set forth below, the “Termination Date”).”

(b) Section 1.5 of the Credit Agreement is amended to read as follows:

“1.5 Extensions. Upon the request of the Borrower, the Bank may
elect from time to time, in its sole discretion, to extend the
Termination Date. During any period or periods of extension, all of
the remaining terms and conditions of this Agreement shall remain in
full force and effect. On the effective date of each extension, the
Borrower shall pay to the Bank an extension fee equal to 0.25% of
the maximum amount of the Line.”

(c) Section 3.2(b) of the Credit Agreement is amended to read as follows:

“(b) Deed of Trust. A limited recourse credit line
deed of trust, in form and substance acceptable to the Bank, from
Food Investors Corporation, a Delaware corporation (the “Grantor”)
to C. Christopher Giragosian and Kevin F. Hull, as trustees, in the
amount of $5,000,000 (as amended, modified or supplemented from time
to time, the “Deed of Trust”) creating a first lien against the
approximately 344 acres of land, and improvements thereon owned by
the Grantor and located at 40506 Tamworth Farm Lane, Leesburg,
Loudoun County, Virginia, as more particularly described in the Deed
of Trust (the “Real Estate”). The Bank agrees that it shall release
the lien of the Deed of Trust provided that at the time of such
release, the Borrower or the Grantor assigns to the Bank, as
security for the Indebtedness, and on the Bank’s standard assignment
form, a deposit account maintained at the Bank in the amount of
$5,000,000.”

(d) Except as specifically modified by this Agreement, the terms and provisions set forth in
the Credit Agreement are ratified and confirmed by the parties hereto in all respects and remain in
full force and effect.

4. Modification of Deed of Trust. The Deed of Trust is modified as follows:

(a) The lien and other terms of the Deed of Trust shall continue to secure the Line as
increased hereby, and any subsequent extensions, renewals, amendments, modifications increases or
supplements to the Line or the Amended Line Note. Accordingly, each reference in the Deed of Trust
(1) to the “Credit Agreement” shall be deemed to be a reference individually and collectively to
the Credit Agreement as amended hereby, and all further amendments, modifications or supplements of
the Credit Agreement, and (2) to the “Line Note” shall be deemed to be a reference individually and
collectively to the Amended Line Note, and all further amendments, modifications, supplements,
extensions, renewals or replacements of the Amended Line Note.

(b) Notwithstanding anything to the contrary contained in the Deed of Trust, the maximum
amount of principal secured by the Deed of Trust shall be increased to $5,000,000 and the reference
to $2,500,000 in Section 2(b) of the Deed of Trust is hereby changed to read as “$5,000,000.”

(c) The Grantor ratifies and confirms the grant of the Property, as defined and as set forth
in the Deed of Trust to secure payment of the Secured Indebtedness, as defined therein, and as
increased by this Agreement.

(d) The Grantor hereby restates, confirms and ratifies each of the representations and
warranties set forth in the Deed of Trust and agrees that a breach or default under this Agreement
will constitute a default under the Deed of Trust. Except as specifically modified by this
Agreement, the terms and provisions of the Deed of Trust are ratified and confirmed by the parties
hereto and remain in full force and effect. The Deed of Trust, as modified hereby, continues to
secure the Secured Indebtedness, as defined therein and as increased hereby, with the same priority
as before this Agreement was executed and delivered.

5. Modification of Security Agreement. The Security Agreement is modified as follows:

(a) The security interest created by the Security Agreement shall continue to secure the Line
as increased hereby, and any subsequent extensions, renewals, amendments, modifications increases
or supplements to the Line or the Amended Line Note. Accordingly, each reference in the Security
Agreement (1) to the “Credit Agreement” shall be deemed to be a reference individually and
collectively to the Credit Agreement as amended hereby, and all further amendments, modifications
or supplements of the Credit Agreement, and (2) to the “Line Note” shall be deemed to be a
reference individually and collectively to the Amended Line Note, and all further amendments,
modifications, supplements, extensions, renewals or replacements of the Amended Line Note.

(b) The Borrower ratifies and confirms the grant of the security interest in the Collateral,
as defined and as set forth in the Security Agreement, to secure payment of the Obligations, as
defined therein, and as increased by this Agreement.

(c) The Borrower hereby restates, confirms and ratifies each of the representations and
warranties set forth in the Security Agreement and agrees that a breach or default under this
Agreement will constitute a default under the Security Agreement. Except as specifically modified
by this Agreement, the terms and provisions of the Security Agreement are ratified and confirmed by
the Borrower and remain in full force and effect. The Security Agreement, as modified hereby,
continues to secure the Obligations, as defined therein and as increased hereby, with the same
priority as before this Agreement was executed and delivered.

6. Modification of Loan Documents.

(a) In addition to the specific modifications made to the Line Note, the Credit Agreement, the
Deed of Trust and the Security Agreement, all of the Loan Documents are modified by the parties to
this Agreement so that each reference to the Line Note, the Credit Agreement, the Deed of Trust or
the Security Agreement in any of the Loan Documents shall be deemed to be a reference,
respectively, to the Amended Line Note, the Credit Agreement, the Deed of Trust and the Security
Agreement, as modified and increased hereby.

(b) Except as specifically modified by this Agreement, the terms and provisions of the Loan
Documents are ratified and confirmed by the parties hereto in all respects and remain in full force
and effect. The Borrower and the Grantor acknowledge and agree that nothing contained in this
Agreement shall obligate the Bank to make any other modifications to the Loan Documents, and any
further modifications shall be in the absolute and sole discretion of the Bank.

7. Execution by Trustee. The Trustee joins in this Agreement at the request of the
Bank (as evidenced by the execution hereto by the Bank).

8. Representations and Warranties. All other representations, covenants and
warranties made by the Borrower and the Grantor in the Loan Documents are incorporated by reference
in this Agreement and are deemed to have been repeated as of the date of this Agreement with the
same force and effect as if set forth in this Agreement.

9. Fees. The Borrower agrees to pay all costs and expenses incurred by the Bank in
connection with this Agreement, including, but not limited to, reasonable attorneys’ fees and title
insurance premiums. The Borrower also agrees to pay to the Bank, on the date of this Agreement, in
consideration of the increase to the Line, a commitment fee of $25,000.

10. Title Endorsement. Within 30 days after the date of this Agreement or as soon as
possible after the receipt of recording information from the Land Records, the Borrower shall
deliver to the Bank an endorsement to the mortgagee title insurance policy insuring the lien of the
Deed of Trust, which endorsement shall (1) advance the effective date of such policy to the date of
recordation of this Agreement, (2) increase the insured amount to $5,000,000, (3) amend the
description of the insured mortgage to include this Agreement, (4) amend the exception for the lien
of taxes to refer to taxes subsequent to June 30, 2005, and (5) contain no new exceptions or
objections to title except as the Bank may otherwise consent in writing.

11. No Defense; No Novation. Each of the Borrower and the Grantor acknowledges and
agrees that it has no defense, setoff or counterclaim against its obligations under the Loan
Documents. This Agreement is a modification only and does not effect a novation of the obligations
of the Borrower and the Grantor under the Loan Documents.

12. Further Assurances. Each of the Borrower and the Grantor agrees to execute and
deliver, or cause to be executed and delivered, and to do or to make, or cause to be done or made,
upon the reasonable request of the Bank, any and all instruments, papers, deeds, acts or things,
supplemental, confirmation, or otherwise, as the Bank may require for the purpose of effecting the
modifications described in this Agreement.

13. Completeness and Modification. This Agreement constitutes the entire agreement
between the parties hereto as to the transactions contemplated hereby and supersedes all prior
discussions, understandings or agreements between the parties hereto as to the transactions
contemplated hereby.

14. Successors and Assigns. This Agreement shall bind and inure to the benefit of the
parties hereto and their respective successors and assigns.

15. Counterparts. This Agreement may be executed by the parties in any combination,
in one or more counterparts, all of which together shall constitute but one and the same
instrument.

16. Governing Law. This Agreement shall be governed by the laws of the Commonwealth
of Virginia without reference to conflict of laws principles.

IN WITNESS WHEREOF, the parties have executed, or caused their duly authorized representatives
to execute, this Agreement as of the day and year first written above, on the following attached
signature pages.

[SIGNATURES ON FOLLOWING PAGES]

1

Witness the following signature.

BORROWER:

CUISINE SOLUTIONS, INC., a Delaware corporation

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	By:
	 	/s/ Stanislas Vilgrain
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Name:
	 	Stanislas Vilgrain

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Title:
	 	Chief Executive Officer

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	City
	 	of
	 	Alexandria
	 	 	,	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Commonwealth
	 	of
	 	Virginia
	 	, to wit:
	 
	 	 	 	 	 	 	 	 	 	 	 	 

The foregoing instrument was acknowledged before me in the aforesaid jurisdiction this
     15th      day of _November     , 2005, by _Stanislas Vilgrain     , as
     CEO      of Cuisine Solutions, Inc., a Delaware corporation, on behalf of the
corporation.

Given under my hand and seal this _15th     day of      November__, 2005.

My Commission expires: _April 30, 2009     

/s/ Anne-Sophie Guillaud_

	 	 	 	Notary Public

2

Witness the following signature.

GRANTOR:

Food Investors Corporation, a Delaware corporation

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	By:
	 	/s/ Stanislas Vilgrain
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Name:
	 	Stanislas Vilgrain

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Title:
	 	Director

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	City
	 	of
	 	Alexandria
	 	 	,	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Commonwealth
	 	of
	 	Virginia
	 	, to wit:
	 
	 	 	 	 	 	 	 	 	 	 	 	 

The foregoing instrument was acknowledged before me in the aforesaid jurisdiction this
_12th     day of _December_, 2005, by _Stanislas Vilgrain     , as
     Officer     of Food Investors Corporation, a Delaware corporation, on behalf of the
corporation.

Given under my hand and seal this _12th     day of _December_, 2005.

My Commission expires: _April 30, 2009     

/s/ Anne-Sophie Guillaud_

	 	 	 	Notary Public

3

Witness the following signature.

BANK:

BANK OF CHARLES TOWN, a West Virginia banking
corporation

	 	 	 	 	 	 	 	 	 
	
 
	 	 	 	 	 	By:/s/ David W. Irvin
	 	

	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	
 
	 	 	 	 	 	Name:David W. Irvin
	 	

	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Title:Senior Vice President

	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	State

	 	of
	 	West Virginia,
	 	

	 	

	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	County

	 	 	 	of
	 	Jefferson
	 	, to wit:
	 

	 	 
	 	 	 	 
	 	

The foregoing instrument was acknowledged before me in the aforesaid jurisdiction this
_15th     day of _December_, 2005, by _David W. Irvin_, as _Senior Vice
President     of Bank of Charles Town, a West Virginia banking corporation, on behalf of the
corporation.

Given under my hand and seal this _15th     day of      December     , 2005.

My Commission expires: _September 17, 2009     

_/s/ Mary L. Bowers     

	 	 	 	Notary Public

4

Witness the following signature.

TRUSTEE:

_/s/ C. Christopher Giragosian     

	 	C.	 	Christopher Giragosian, as sole acting trustee

	 	 	 	 	 	 	 	 	 	 	 	 	 
	County
	 	 	 	 	 	of Fairfax
	 	 	,	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Commonwealth
	 	of
	 	Virgina
	 	, to wit:
	 
	 	 	 	 	 	 	 	 	 	 	 	 

The foregoing instrument was acknowledged before me in the aforesaid jurisdiction this
_15th     day of _December_, 2005, by C. Christopher Giragosian, as trustee.

Given under my hand and seal this _15th  day of      December_, 2005.

My Commission expires: _December 31, 2008_

_/s/ J. Bayler, III     

	 	 	 	Notary Public

After recording, please return to:

C. Christopher Giragosian, Esquire

Hunton & Williams

Suite 1700

1751 Pinnacle Drive

McLean, Virginia 22102

5

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