Document:

2004 Performance Incentive Plan Accelerated Stock Agreement with Robert K. Cole

 Exhibit 10.6 
  
 NEW CENTURY FINANCIAL CORPORATION 
 2004 PERFORMANCE INCENTIVE PLAN 
 PERFORMANCE-ACCELERATED STOCK OPTION AGREEMENT 
  
 THIS PERFORMANCE-ACCELERATED STOCK OPTION AGREEMENT (this
“Option Agreement”) dated March 10, 2005, by and between NEW CENTURY FINANCIAL CORPORATION, a Maryland corporation (the “Corporation”), and Robert K. Cole (the “Grantee”) evidences the
incentive stock option (the “Option”) granted by the Corporation to the Grantee as to the number of shares of the Corporation’s Common Stock first set forth below. 
  

								
	Number of Shares of Common Stock:1	  	 	39,568	    	Award Date:	  	3/10/05
				
	Exercise Price per Share:1	  	$	49.27	    	Expiration Date:1,2	  	3/10/15

  
 Vesting1,2 The Option shall become vested as to 100% of the total number of shares of Common Stock subject to the Option on the
fifth (5th) anniversary of the Award Date; provided, however, that vesting of all or a portion of the shares of
Common Stock subject to the Option may be accelerated pursuant to Exhibit A attached hereto. 
  
 The Option is granted under the New Century Financial Corporation 2004 Performance Incentive Plan (the “Plan”) and subject to the Terms and Conditions of Incentive Stock Option (the
“Terms”) attached to this Option Agreement (incorporated herein by this reference) and to the Plan. The Option has been granted to the Grantee in addition to, and not in lieu of, any other form of compensation otherwise payable or
to be paid to the Grantee. The Option is intended as an incentive stock option within the meaning of Section 422 of the Code (an “ISO”). Capitalized terms are defined in the Plan if not defined herein. The Corporation and the
Grantee agree to the terms of the Option set forth herein. The Grantee acknowledges receipt of a copy of the Terms, the Plan and the Prospectus for the Plan. 
  

									
	GRANTEE	 	 	 	 NEW CENTURY FINANCIAL CORPORATION,
 a Maryland corporation

					
	 By:
	 	 /s/ Robert K. Cole
	 	 	 	 By:
	 	 /s/ Brad A. Morrice

	 Name:
	 	 Robert K. Cole
	 	 	 	 Name:
	 	 Brad A. Morrice

	 	 	 	 	 	 	 Its:
	 	Vice Chairman, President and Chief Operating Officer

	1	Subject to adjustment under Section 7.1 of the Plan. 

  

	2	Subject to early termination under Section 4 of the Terms and Section 7.4 of the Plan. 

  

 TERMS AND CONDITIONS OF INCENTIVE STOCK OPTION 
  

	1.	Vesting; Limits on Exercise. 

  
 The Option shall vest and become exercisable as set forth on the cover page of this Option Agreement. The Option may be exercised only to the extent the
Option is vested and exercisable. 
  

	 	•	 	Cumulative Exercisability. To the extent that the Option is vested and exercisable, the Grantee has the right to exercise the Option (to the extent not previously exercised),
and such right shall continue, until the expiration or earlier termination of the Option. 

  

	 	•	 	No Fractional Shares. Fractional share interests shall be disregarded, but may be cumulated. 

  

	 	•	 	Minimum Exercise. No fewer than 1001 shares of Common Stock may be purchased at any one time, unless the number purchased is the total number at the time exercisable under
the Option. 

  

	 	•	 	ISO Value Limit. If the aggregate fair market value of the shares with respect to which ISOs (whether granted under the Option or otherwise) first become exercisable by the
Grantee in any calendar year exceeds $100,000, as measured on the applicable Award Dates, the limitations of Section 5.1.2 of the Plan shall apply and to such extent the Option will be rendered a nonqualified stock option. 

 

	2.	Continuance of Employment/Service Required; No Employment/Service Commitment. 

  
 The vesting schedule requires continued employment or service through each applicable vesting date as a condition to the
vesting of the applicable portion of the Option and the rights and benefits under this Option Agreement. Employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Grantee to any proportionate
vesting or avoid or mitigate a termination of rights and benefits upon or following a termination of employment or services as provided in Section 4 below or under the Plan. 
  
 Nothing contained in this Option Agreement or the Plan constitutes a continued employment or service commitment by the
Corporation or any of its Subsidiaries, affects the Grantee’s status, if he or she is an employee, as an employee at will who is subject to termination without cause, confers upon the Grantee any right to remain employed by or in service to the
Corporation or any Subsidiary, interferes in any way with the right of the Corporation or any Subsidiary at any time to terminate such employment or service, or affects the right of the Corporation or any Subsidiary to increase or decrease the
Grantee’s other compensation. 
  

	3.	Method of Exercise of Option. 

  
 The Option shall be exercisable by the delivery to the Secretary of the Corporation (or such other person as the Administrator may require pursuant to
such administrative exercise procedures as the Administrator may implement from time to time) of: 
  

	 	•	 	a written notice stating the number of shares of Common Stock to be purchased pursuant to the Option or by the completion of such other administrative exercise procedures as the
Administrator may require from time to time, 

  

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	 	•	 	payment in full for the Exercise Price of the shares to be purchased in cash, check or by electronic funds transfer to the Corporation, or (subject to compliance with all applicable
laws, rules, regulations and listing requirements and further subject to such rules as the Administrator may adopt as to any non-cash payment) in shares of Common Stock already owned by the Grantee, valued at their Fair Market Value on the exercise
date, provided, however, that any shares initially acquired upon exercise of a stock option or otherwise from the Corporation must have been owned by the Grantee for at least six (6) months before the date of such exercise; 

 

	 	•	 	any written statements or agreements required pursuant to Section 8.1 of the Plan; and 

  

	 	•	 	satisfaction of the tax withholding provisions of Section 8.5 of the Plan. 

  
 The Administrator also may, but is not required to, authorize a non-cash payment alternative by notice and third party payment in such manner as may be authorized by the
Administrator. 
  
 The Grantee may irrevocably elect, in such manner and at such
time or times prior to any applicable tax date as may be permitted or required under Section 8.5 of the Plan and rules established by the Administrator (and subject to the requirements of applicable law), to have the Corporation withhold shares of
Common Stock issuable on exercise of the Option at their fair market value at the time of exercise to satisfy any minimum withholding obligations of the Corporation or its Subsidiaries with respect to such exercise. 
  
 The Option will qualify as an ISO only if it meets all of the applicable requirements of the
Code. The Option may be rendered a nonqualified stock option if the Administrator permits the use of one or more of the non-cash payment alternatives referenced above. 
  

	4.	Early Termination of Option. 

  
 4.1 Possible Termination of Option upon Change in Control. The Option is subject to termination in connection with a Change in Control Event or
certain similar reorganization events as provided in Section 7.4 of the Plan. 
  
 4.2 Termination of Option upon a Termination of Grantee’s Employment or Services. Subject to earlier termination on the Expiration Date of the Option or pursuant to Section 4.1 above, if the Grantee ceases
to be employed by or ceases to provide services to the Corporation or a Subsidiary, the following rules shall apply (the last day that the Grantee is employed by or provides services to the Corporation or a Subsidiary is referred to as the
Grantee’s “Severance Date”): 
  

	 	•	 	 other than as expressly provided below in this Section 4.2, (a) the Grantee will have until the date that is 30 days after his or her Severance Date to exercise the
Option (or portion 

  

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thereof) to the extent that it was vested on the Severance Date, (b) the Option, to the extent not vested on the Severance Date, shall terminate on the
Severance Date, and (c) the Option, to the extent exercisable for the 30-day period following the Severance Date and not exercised during such period, shall terminate at the close of business on the last day of the 30-day period;

  

	 	•	 	if the termination of the Grantee’s employment is the result of the Grantee’s voluntary Retirement (as defined below and other than a termination by the Corporation or a
Subsidiary for Cause as provided below), then (a) the Grantee will have until the date that is 3 years after his or her Severance Date to exercise the Option (or portion thereof) to the extent that it was vested on the Severance Date or becomes
vested pursuant to the following, (b) the Option shall continue to vest for the 3-year period following the Severance Date to the extent that it was scheduled to vest during such period (on the date that the Option would have vested had the Grantee
remained employed by the Corporation or a Subsidiary, subject to acceleration pursuant to Sections 7.2 and 7.3 of the Plan and the attached Exhibit A), (c) to the extent the Option was not vested on the Severance Date or scheduled to vest during
such 3-year period, such portion of the Option shall terminate on the Severance Date, and (d) the Option, to the extent exercisable and not exercised at the end of such 3-year period, shall terminate at the close of business on the last day of the
3-year period; 

  

	 	•	 	if the termination of the Grantee’s employment is the result of the Grantee’s death or Disability (as defined below), then (a) the Grantee (or his beneficiary or personal
representative, as the case may be) will have until the date that is 3 years after the Grantee’s Severance Date to exercise the Option, (b) the Option, to the extent not otherwise vested on the Severance Date, shall automatically become fully
vested as of the Severance Date, and (c) the Option, to the extent exercisable for the 3-year period following the Severance Date and not exercised during such period, shall terminate at the close of business on the last day of the 3-year period;

  

	 	•	 	if the termination of the Grantee’s employment is the result of a termination by the Corporation or a Subsidiary for Cause (as defined below), the Option (whether vested or
not) shall terminate on the Severance Date. 

  
 For
purposes of the Option, “Disability” means a permanent and total disability (within the meaning of Section 22(e)(3) of the Code or as otherwise determined by the Administrator). For purposes of the Option,
“Retirement” means a termination of employment by the Grantee that occurs upon or after the Grantee’s attainment of age 65 and in accordance with the retirement policies of the Corporation (or the Subsidiary that employs the
Grantee) then in effect. For purposes of the Option, “Cause” means that the Grantee: (a) has been negligent in the discharge of his or her duties to the Corporation or a Subsidiary or has refused or failed to adequately perform
stated or assigned duties (other than by reason of a disability or analogous condition), which shall be determined by the Corporation or a Subsidiary in its sole discretion; (b) has been dishonest or committed or engaged in any act of theft,
embezzlement, dishonesty or fraud, breach of confidentiality, or unauthorized disclosure or use of inside information, customer lists, associate information, trade secrets or other confidential information of the Corporation or a Subsidiary or

  

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any other misuse of data, information or documents acquired in connection with employment by the Corporation or a Subsidiary; (c) has breached a fiduciary
duty, or otherwise violated any duty, law, rule, regulation or policy of the Corporation or a Subsidiary; (d) has misused or misappropriated the assets of the Corporation or a Subsidiary; (e) has been convicted of, or pled guilty or nolo contendere
to, any felony or any misdemeanor involving moral turpitude or otherwise causing embarrassment to the Corporation or a Subsidiary; (f) has materially breached any of the provisions of any agreement with the Corporation or a Subsidiary; (g) has
engaged in unfair competition with, or otherwise acted intentionally or negligently in a manner injurious to the reputation, goodwill, business or assets of, the Corporation or a Subsidiary; or (h) has induced a vendor or customer to breach or
terminate any contract with the Corporation or a Subsidiary or induced a principal for whom the Corporation or a Subsidiary acts as agent to breach or terminate such agency relationship. “Cause” shall also include any resignation by the
Grantee in anticipation of a discharge for “Cause” (as provided above) or resignation by the Grantee accepted by the Corporation or a Subsidiary in lieu of a formal discharge for “Cause.” 
  
 In all events the Option is subject to earlier termination on the Expiration
Date of the Option or as contemplated by Section 4.1. The Administrator shall be the sole judge of whether the Grantee continues to render employment or services for purposes of this Option Agreement. 
  
 Notwithstanding any post-termination exercise period provided for herein or
in the Plan, the Option will qualify as an ISO only if it is exercised within the applicable exercise periods for ISOs under, and meets all of the other requirements of, the Code. If the Option is not exercised within the applicable exercise periods
for ISOs or does not meet such other requirements, the Option will be rendered a nonqualified stock option. 
  

	5.	Non-Transferability. 

  
 The Option and any other rights of the Grantee under this Option Agreement or the Plan are nontransferable and exercisable only by the Grantee, except as
set forth in Section 5.7 of the Plan. For purposes of clarity, the Administrator has not authorized any transfer exceptions as contemplated by Section 5.7.2 of the Plan. 
  

	6.	Notices. 

  
 Any notice to be given under the terms of this Option Agreement shall be in writing and addressed to the Corporation at its principal office to the
attention of the Secretary, and to the Grantee at the address last reflected on the Corporation’s payroll records, or at such other address as either party may hereafter designate in writing to the other. Any such notice shall be delivered in
person or shall be enclosed in a properly sealed envelope addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid) in a post office or branch post office regularly maintained by the United
States Government. Any such notice shall be given only when received, but if the Grantee is no longer employed by the Corporation or a Subsidiary, shall be deemed to have been duly given five (5) business days after the date mailed in accordance
with the foregoing provisions of this Section 6. 
  

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	7.	Plan. 

  
 The Option and all rights of the Grantee under this Option Agreement are subject to the terms and conditions of the Plan, incorporated herein by this
reference. The Grantee agrees to be bound by the terms of the Plan and this Option Agreement (including these Terms). The Grantee acknowledges having read and understanding the Plan, the Prospectus for the Plan, and this Option Agreement. Unless
otherwise expressly provided in other sections of this Option Agreement, provisions of the Plan that confer discretionary authority on the Board or the Administrator do not and shall not be deemed to create any rights in the Grantee unless such
rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the Administrator so conferred by appropriate action of the Board or the Administrator under the Plan after the date hereof. 
  

	8.	Entire Agreement. 

  
 This Option Agreement (including these Terms) and the Plan together constitute the entire agreement and supersede all prior understandings and agreements,
written or oral, of the parties hereto with respect to the subject matter hereof. The Plan and this Option Agreement may be amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and signed by the Corporation. The Corporation
may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely affect the interests of the Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same
provision or a waiver of any other provision hereof. 
  

	9.	Governing Law. 

  
 This Option Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Maryland without regard to conflict of
law principles thereunder. 
  

	10.	Effect of this Agreement. 

  
 Subject to the Corporation’s right to terminate the Option pursuant to Section 7.4 of the Plan, this Option Agreement shall be assumed by, be binding
upon and inure to the benefit of any successor or successors to the Corporation. 
  

	11.	Section Headings. 

  
 The section headings of this Option Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof.

  

	12.	Notice of Sale of ISO Shares. 

  
 The Grantee agrees that, upon any sale or other transfer of shares of Common Stock purchased pursuant to the Option within either one (1) year of the date
that they are acquired by the Grantee or two (2) years after the Award Date set forth above, the Grantee shall promptly provide to the Corporation written notice of such sale or other transfer. 
  

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 EXHIBIT A 
  

PERFORMANCE-ACCELERATED VESTING 
  
 Subject to early termination of the Option under Section 4 of the Terms, the Option shall immediately become vested as to the percentage of the total
number of shares of Common Stock subject to the Option set forth on the table below (the “Vesting Percentage”) at the end of any period of ten (10) consecutive trading days on which the Common Stock is actively listed or traded on a
national securities exchange or on the New York Stock Exchange Reporting System and the closing or last price, as applicable, for a share of the Common Stock (“Stock Price”) on each of such trading days equals or exceeds the
applicable threshold amount set forth below (the “Stock Price Threshold”). For avoidance of doubt, the Option may vest only once with respect to any Stock Price Threshold so that, for example, if the Stock Price equals or exceeds
the 25% Stock Price Threshold below for ten (10) consecutive trading days and 25% of the shares subject to the Option vest accordingly, no additional shares subject to the Option shall vest if the Stock Price declines below the 25% Stock Price
Threshold and subsequently increases above the 25% Stock Price Threshold. Furthermore, the Vesting Percentages do not cumulate so that, for example, if the Stock Price equals or exceeds the 25% Stock Price Threshold for ten (10) consecutive trading
days and 25% of the shares subject to the Option vest accordingly, an additional 25% of the shares subject to the Option (not an additional 50% of such shares) shall vest if the Stock Price subsequently equals or exceeds the 50% Stock Price
Threshold for ten (10) consecutive trading days. 
  

				
	 Vesting Percentage

	  	Stock Price
Threshold

	 25%
	  	$	62.50
	 50%
	  	$	70.00
	 75%
	  	$	77.50
	 100%
	  	$	85.00

  
 Adjustments. The Administrator shall adjust the Stock Price Thresholds referenced above to the extent (if any) it determines that the adjustment is necessary or advisable to preserve the intended incentives and benefits to
reflect (1) any stock split, reverse stock split, stock dividend, material change in corporate capitalization, any material corporate transaction (such as a reorganization, combination, separation, merger, acquisition, or any combination of the
foregoing), or any complete or partial liquidation of the Corporation, (2) any change in accounting policies or practices, (3) the effects of any special charges to the Corporation’s earnings, or (4) any other similar special circumstances.

  

 72004 Performance Incentive Plan Dividend Agreement with Robert K. Cole

 Exhibit 10.7 
  
 NEW CENTURY FINANCIAL CORPORATION 
 2004 PERFORMANCE INCENTIVE PLAN 
 DIVIDEND EQUIVALENT RIGHTS AWARD AGREEMENT 
  
 THIS DIVIDEND EQUIVALENT RIGHTS AWARD AGREEMENT (this “Award
Agreement”) is dated as of March 10, 2005 (the “Award Date”), by and between New Century Financial Corporation, a Maryland corporation (the “Corporation”), and Robert K. Cole (the
“Participant”). 
  
 WITNESSETH 

 
 WHEREAS, pursuant to the New Century Financial Corporation 2004
Performance Incentive Plan (the “Plan”), the Corporation hereby grants to the Participant, effective as of the date hereof, a dividend equivalent rights award (the “Award”), upon the terms and conditions set forth
herein and in the Plan. 
  
 NOW THEREFORE, in consideration
of services rendered and to be rendered by the Participant, and the mutual promises made herein and the mutual benefits to be derived therefrom, the parties agree as follows: 
  
 1. Defined Terms. Capitalized terms used herein and not otherwise defined herein shall have the meaning
assigned to such terms in the Plan. 
  
 2. Grant;
Term of Award. Subject to the terms of this Award Agreement, the Corporation hereby grants to the Participant an Award with respect to 35,402 dividend equivalent rights (the “Dividend Equivalent Rights”). The Corporation
acknowledges that the consideration for the shares payable with respect to the Dividend Equivalent Rights on the terms set forth in this Award Agreement shall be the services rendered to the Corporation or any of its Subsidiaries by the Participant
prior to the applicable payment date (if any), the fair value of which is not less than the par value per share of the Corporation’s Common Stock. Each of the calendar years 2005, 2006 and 2007 is referred to herein as a “Performance
Year.” 
  
 3. Dividend Equivalents;
Performance Thresholds. At the conclusion of each Performance Year, the Administrator shall determine (1) the Earnings Per Share (as such term is defined in Appendix A of the Plan) for the Corporation on a stand-alone (not consolidated)
basis (the “Earnings Per Share”) and (2) the aggregate amount of the dividends paid by the Corporation on a share of its Common Stock (the “Aggregate Annual Dividend”) with respect to that Performance Year. For any
Performance Year, if either the Earnings Per Share with respect to that Performance Year is less than the EPS Threshold set forth below for that Performance Year, or the Aggregate Annual Dividend with respect to that Performance Year is less than
the Dividend Threshold set forth below for that Performance Year, the Participant shall have no rights under this Award with respect to that Performance Year. 
  

							
	 Performance Year

	  	EPS
Threshold

	  	Dividend
Threshold

	 2005
	  	$	4.00	  	$	6.30
	 2006
	  	$	4.40	  	$	7.00
	 2007
	  	$	4.84	  	$	7.75

  
 If, however, both the Earnings Per
Share with respect to a Performance Year is equal to or greater than the EPS Threshold set forth above for that Performance Year, and the Aggregate Annual Dividend with respect to that Performance Year is equal to or greater than the Dividend
Threshold set forth above for that Performance Year, the Corporation shall make a “Dividend Equivalent” payment to the Participant. The amount of the Dividend Equivalent payment will, subject to tax withholding, equal (i) the number
of Dividend Equivalent Rights subject to the Award, multiplied by (ii) the Aggregate Annual Dividend for such Performance Year. No interest or other earnings will be credited with respect to such Dividend Equivalent. 
  
 For purposes of the Award, a dividend shall be deemed paid by the Corporation
on the date the dividend is actually paid to the Corporation’s stockholders. 
  
 4. Payment. Subject to Section 8 below, any Dividend Equivalent payment for a Performance Year shall be paid to the Participant no later than forty-five (45) days after the last day of such
Performance Year (the “Award Payment Date”). Payment shall be made, in the Administrator’s sole discretion, either (i) in cash, or (ii) in a number of whole shares of Common Stock obtained by dividing (x) the amount of the
Dividend Equivalent being paid, by (y) the fair market value (determined in accordance with the Plan) of a share of Common Stock as of the applicable Award Payment Date. Fractional share interests shall be disregarded but may be cumulated or, in the
Administrator’s discretion, paid in cash. Payment in shares of Common Stock shall be made either by delivering one or more certificates for such shares or by entering such shares in book entry form, as determined by the Administrator in its
sole discretion. The Participant or other person entitled under the Plan to receive the shares shall deliver to the Corporation any representations or other documents or assurances required pursuant to Section 8.1 of the Plan. Delivery of any
certificates or cash payment will be made to the Participant’s last address reflected on the books of the Corporation or its Subsidiaries unless the Corporation is otherwise instructed in writing. 
  
 5. Continuance of Employment. The Participant’s
continued employment or service through each applicable Award Payment Date is a condition to the payment of the applicable portion of the Award and the rights and benefits under this Award Agreement. Partial employment or service, even if
substantial, during any applicable period will not entitle the Participant to any proportionate payment or avoid or mitigate a termination of rights and benefits upon or following a termination of employment or services as provided in Section 8
below or under the Plan. 
  
 Nothing contained in this Award
Agreement or the Plan constitutes an employment or service commitment by the Corporation, affects the Participant’s status as an employee at will 

  

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who is subject to termination without cause, confers upon the Participant any right to remain employed by or in service to the Corporation or any of its
Subsidiaries, interferes in any way with the right of the Corporation or any of its Subsidiaries at any time to terminate such employment or services, or affects the right of the Corporation or any of its Subsidiaries to increase or decrease the
Participant’s other compensation or benefits. Nothing in this paragraph, however, is intended to adversely affect any independent contractual right of the Participant without his or her consent thereto. 
  
 6. Limitations on Rights. The Dividend Equivalent Rights
and the Dividend Equivalents are for bookkeeping purposes only. Dividend Equivalents will not be treated as property or as a trust fund of any kind. The Participant shall have no rights as a stockholder of the Corporation, no dividend rights (except
as expressly provided herein with respect to the payment of Dividend Equivalents) and no voting rights with respect to the Dividend Equivalent Rights, the Dividend Equivalents or any shares of Common Stock issuable in respect of such Dividend
Equivalents, unless and until shares of Common Stock are actually delivered to and held of record by the Participant. Except as expressly provided herein, no adjustments will be made for dividends or other rights of a holder for which the record
date is prior to the date of delivery of the shares. The Participant’s rights with respect to the Award are merely those of a general unsecured creditor of the Corporation to receive payment as described herein subject to the terms and
conditions set forth herein. Neither the Participant nor any other person has any legal or equitable rights, claims or interest in any specific property or assets of the Corporation or any of its Subsidiaries. No assets of the Corporation or any
Subsidiary will be held under any trust or held in any way as collateral security of the fulfilling of the Corporation’s obligations under this Award Agreement. 
  
 7. Restrictions on Transfer. Neither the Dividend Equivalent Rights, nor the Dividend Equivalents
(prior to the time (if any) such Dividend Equivalents are paid), nor any other rights of the Participant under this Award Agreement or the Plan may be sold, assigned, transferred, pledged or otherwise disposed of, alienated or encumbered, either
voluntarily or involuntarily. The transfer restrictions in the preceding sentence shall not apply to (a) transfers to the Corporation, or (b) transfers by will or the laws of descent and distribution. 
  
 8. Effect of Termination of Employment or Services.
Subject to Section 9 below, if the Participant ceases to be employed by or ceases to provide services to the Corporation or a Subsidiary at any time before an Award Payment Date, the Award shall terminate and any Dividend Equivalent that would
otherwise be paid as of such Award Payment Date pursuant to this Award Agreement shall not be paid and shall be extinguished upon the date the Participant’s employment or services terminate (regardless of the reason for such termination,
whether with or without cause, voluntarily or involuntarily, or due to death or disability); provided, however, that the Administrator may in its sole discretion provide for payment of any Dividend Equivalent that would otherwise have been
extinguished pursuant to this Section 8. 
  
 9.
Adjustments Upon Specified Events; Change in Control Event. Upon the occurrence of certain events relating to the Corporation’s stock contemplated by Section 7.1 of the Plan, the Administrator shall make adjustments if
appropriate to the Award and the Dividend Equivalent Rights. Furthermore, the Administrator shall adjust the Dividend Thresholds referenced above to the extent (if any) it determines that the adjustment is necessary or advisable 

  

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to preserve the intended incentives and benefits to reflect (1) any stock split, reverse stock split, stock dividend, material change in corporate
capitalization, any material corporate transaction (such as a reorganization, combination, separation, merger, acquisition, or any combination of the foregoing), or any complete or partial liquidation of the Corporation, (2) any change in accounting
policies or practices, (3) the effects of any special charges to the Corporation’s earnings, or (4) any other similar special circumstances. 
  
 Notwithstanding any other provision herein, upon the occurrence of a Change in Control Event following which the Corporation will not survive as a public
company in respect of its Common Stock, the Award shall immediately terminate, and the Participant’s Dividend Equivalent for the Performance Year in which the Change in Control Event occurs shall immediately become payable (regardless of
whether the Annual Aggregate Dividend for such Performance Year has exceeded the applicable Dividend Threshold). A Dividend Equivalent that becomes payable pursuant to this Section 9 shall be paid to the Participant as soon as practicable after such
Change in Control Event. The Participant shall have no further rights with respect to the Award or such Dividend Equivalent (except the right to receive any amounts which had previously become payable (or become payable upon such Change in Control
Event) with respect to the Award but which had not yet actually been paid). 
  
 10. Tax Withholding. The Corporation (or any of its Subsidiaries last employing the Participant) shall be entitled to require a cash payment by or on behalf of the Participant and/or to deduct
from other compensation payable to the Participant any sums required by federal, state or local tax law to be withheld with respect to the payment of any Dividend Equivalent. Alternatively, the Participant or other person to whom shares of Common
Stock are to be delivered in payment of a Dividend Equivalent may irrevocably elect, in such manner and at such time or times prior to any applicable tax date as may be permitted or required under Section 8.5 of the Plan and rules established by the
Administrator (and subject to the requirements of applicable law), to have the Corporation withhold and reacquire shares at their fair market value at the time of payment to satisfy any minimum withholding obligations of the Corporation or its
Subsidiaries with respect to such payment. Any election to have shares so held back and reacquired shall be subject to such rules and procedures, which may include prior approval of the Administrator, as the Administrator may impose. 
  
 11. Notices. Any notice to be given under the terms of
this Award Agreement shall be in writing and addressed to the Corporation at its principal office to the attention of the Secretary, and to the Participant at the Participant’s last address reflected on the Corporation’s payroll records.
Any notice shall be delivered in person or shall be enclosed in a properly sealed envelope, addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid) in a post office or branch post office
regularly maintained by the United States Government. Any such notice shall be given only when received, but if the Participant is no longer an Eligible Person, shall be deemed to have been duly given five (5) business days after the date mailed in
accordance with the foregoing provisions of this Section 11. 
  
 12. Plan. The Award and all rights of the Participant under this Award Agreement are subject to the terms and conditions of the provisions of the Plan, incorporated herein by reference. The Participant agrees to be
bound by the terms of the Plan and this Award Agreement. The Participant acknowledges having read and understanding the Plan, the 

  

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Prospectus for the Plan, and this Award Agreement. Unless otherwise expressly provided in other sections of this Award Agreement, provisions of the Plan that
confer discretionary authority on the Board or the Administrator do not (and shall not be deemed to) create any rights in the Participant unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the
Administrator so conferred by appropriate action of the Board or the Administrator under the Plan after the date hereof. 
  
 13. Entire Agreement. This Award Agreement and the Plan together constitute the entire agreement and supersede all prior
understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan and this Award Agreement may be amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and signed by
the Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely affect the interests of the Participant hereunder, but no such waiver shall operate as or be construed to
be a subsequent waiver of the same provision or a waiver of any other provision hereof. 
  
 14. Section Headings. The section headings of this Award Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof. 
  
 15. Governing Law. This Award Agreement shall be
governed by and construed and enforced in accordance with the laws of the State of Maryland without regard to conflict of law principles thereunder. 
  
 IN WITNESS WHEREOF, the Corporation has caused this Award Agreement to be executed on its behalf by a duly authorized officer and the Participant
has hereunto set his or her hand as of the date and year first above written. 
  

			
	 NEW CENTURY FINANCIAL CORPORATION,
 a Maryland corporation

		
	 By:
	 	 /s/ Brad A. Morrice

	 Name:
	 	 Brad A. Morrice

	 Its:
	 	Vice Chairman, President and Chief Operating Officer
	
	PARTICIPANT
		
	 By:
	 	 /s/ Robert K. Cole

	 Name:
	 	 Robert K. Cole

  

 5

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