Document:

EX-10.1

SEVENTH AMENDMENT TO CREDIT AGREEMENT

SEVENTH AMENDMENT TO CREDIT AGREEMENT (this “Seventh Amendment”), dated as of March
10, 2006, among EXIDE TECHNOLOGIES, a Delaware corporation (the “U.S. Borrower”), EXIDE
GLOBAL HOLDING NETHERLANDS C.V., a limited partnership organized under the laws of The Netherlands
(the “European Borrower” and, together with the U.S. Borrower, the “Borrowers”),
the Lenders party hereto and DEUTSCHE BANK AG NEW YORK BRANCH, as Administrative Agent (in such
capacity, the “Administrative Agent”). Unless otherwise indicated, all capitalized terms
used herein and not otherwise defined shall have the respective meanings provided such terms in the
Credit Agreement referred to below.

W I T N E S S E T H :

WHEREAS, the Borrowers, the Lenders and the Administrative Agent are parties to a Credit
Agreement, dated as of May 5, 2004 (as amended, restated, modified and/or supplemented to, but not
including, the date hereof, the “Credit Agreement”); and

WHEREAS, subject to the terms, conditions and agreements herein set forth, the parties hereto
have agreed to amend the Credit Agreement as herein provided;

NOW, THEREFORE, it is agreed:

I. Amendments to Credit Agreement.

1. Section 3.01(e) of the Credit Agreement is hereby amended by (x) deleting the text “prior
to January 1, 2009” appearing immediately following the text “Section 10A, in each case” appearing
in said Section and inserting the text “prior to January 1, 2010” in lieu thereof, (y) deleting the
text “2.0%” appearing in clause (A) of said Section and inserting the text “5.0%” in lieu thereof
and (z) deleting the text “, (B) in the case of any such prepayment, refinancing and/or declaration
made on or after January 1, 2008 but before the third anniversary of the Fourth Amendment Effective
Date, 1.0%, and (C) in the case of any such prepayment, refinancing and/or declaration made on or
after the third anniversary of the Fourth Amendment Effective Date but before January 1, 2009,
0.5%” appearing in said Section and inserting the text “, (B) in the case of any such prepayment,
refinancing and/or declaration made on or after January 1, 2008 but before January 1, 2009, 4.0%,
and (C) in the case of any such prepayment, refinancing and/or declaration made on or after January
1, 2009 but before January 1, 2010, 2.0%” in lieu thereof.

2. Section 4.01(vii) of the Credit Agreement is hereby amended by deleting the text “the third
anniversary of January 1, 2009” appearing in said Section and inserting the text “January 1, 2010”
in lieu thereof.

3. Section 4.02(c) of the Credit Agreement is hereby amended by deleting the text “the third
anniversary of January 1, 2009” appearing in the third sentence of said Section and inserting the
text “January 1, 2010” in lieu thereof.

4. Section 4.02(d) of the Credit Agreement is hereby amended by deleting the text “January 1,
2009” appearing in the third sentence of said Section and inserting the text “January 1, 2010” in
lieu thereof.

5. Section 4.02(g) of the Credit Agreement is hereby amended by deleting the text “the third
anniversary of January 1, 2009” appearing in the second sentence of said Section and inserting the
text “January 1, 2010” in lieu thereof.

6. Section 7.10(c) of the Credit Agreement is hereby amended by deleting the text “January 25,
2006” appearing in said Section and inserting the text “March 10, 2006” in lieu thereof.

7. Section 8.01(c) of the Credit Agreement is hereby amended by deleting the second instance
of the text “Fiscal Year 2005” appearing in said Section and inserting the text “Fiscal Years 2005
and 2006” in lieu thereof.

8. Section 9.10 of the Credit Agreement is hereby amended by deleting the table appearing in
said Section in its entirety and inserting the following new table in lieu thereof:

	 	 	 	 	 
	Fiscal Quarter Ending	 	Amount
	Fiscal Quarter ending closest to March 31, 2006
	 	$	100,000,000	 
	Fiscal Quarter ending closest to June 30, 2006
	 	$	105,000,000	 
	Fiscal Quarter ending closest to September 30, 2006
	 	$	110,000,000	 
	Fiscal Quarter ending closest to December 31, 2006
	 	$	123,000,000	 
	Fiscal Quarter ending closest to March 31, 2007
	 	$	123,000,000	 
	Fiscal Quarter ending closest to June 30, 2007
	 	$	123,000,000	 
	Fiscal Quarter ending closest to September 30, 2007 and
each Fiscal Quarter ending thereafter
	 	$	150,000,000	 

9. Section 10A of the Credit Agreement is hereby amended by deleting the text “January 1,
2009” appearing in the second sentence of the paragraph immediately following Section 10.13 and
inserting the text “January 1, 2010” in lieu thereof.

10. The definition of “Applicable Margin” appearing in Section 11 of the Credit Agreement is
hereby amended by (x) deleting each instance of the text “5.25” appearing in said definition and
inserting the text “6.25” in lieu thereof and (y) deleting each instance of the text “4.25”
appearing in said definition and inserting the text “5.25” in lieu thereof.

11. The U.S. Borrower hereby acknowledges and agrees, in furtherance of the provisions
contained in Section 13.01 of the Credit Agreement and similar provisions contained in the other
Credit Documents (and without limiting any of the provisions contained therein), to pay all
reasonable costs and expenses of the Agents, each Issuing Lender and each of the Lenders in
connection with any refinancing or restructuring of the credit arrangements provided under the
Credit Agreement in the nature of a “work-out” or pursuant to any insolvency or bankruptcy
proceedings (including, without limitation, the reasonable fees and disbursements of counsel,
consultants and advisors (including, without limitation, an independent financial advisor engaged
by the Required Lenders and/or the Administrative Agent on behalf of the Lenders, provided
that the U.S. Borrower shall not be required to pay the fees and disbursements of any such
financial advisor in excess of $75,000 in respect of any month (plus the unused portion of
such $75,000 limit from any preceding month not previously used) unless an Event of Default has
occurred and is continuing) of the Agents, each Issuing Lender and each Lender). Without limiting
the foregoing, the U.S. Borrower agrees to confirm such obligations set forth in the immediately
preceding sentence to any such counsel, consultants and/or advisors pursuant to documentation
reasonably satisfactory to the U.S. Borrower and the relevant Agent, Issuing Lender or Lender. In
addition, the U.S. Borrower agrees to explore alternative financing options with respect to the
credit arrangements provided under the Credit Agreement with certain of the Lenders.

II. Miscellaneous Provisions.

1. In order to induce the Lenders to enter into this Seventh Amendment, each of the Borrowers
hereby represents and warrants that (i) no Default or Event of Default exists as of the Seventh
Amendment Effective Date (as defined below) both immediately before and immediately after giving
effect to this Seventh Amendment on such date and (ii) all of the representations and warranties
contained in the Credit Agreement and in the other Credit Documents are true and correct in all
material respects on the Seventh Amendment Effective Date both immediately before and immediately
after giving effect to this Seventh Amendment on such date, with the same effect as though such
representations and warranties had been made on and as of the Seventh Amendment Effective Date (it
being understood that any representation or warranty made as of a specific date shall be true and
correct in all material respects as of such specific date).

2. This Seventh Amendment is limited as specified and shall not constitute a modification,
acceptance or waiver of any other provision of the Credit Agreement or any other Credit Document.

3. This Seventh Amendment may be executed in any number of counterparts and by the different
parties hereto on separate counterparts, each of which counterparts when executed and delivered
shall be an original, but all of which shall together constitute one and the same instrument. A
complete set of counterparts shall be lodged with the U.S. Borrower and the Administrative Agent.

4. THIS SEVENTH AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

5. This Seventh Amendment shall become effective on the date (the “Seventh Amendment
Effective Date”) when each of the following conditions shall have been satisfied:

(i) each of the Borrowers, each other Credit Party and Lenders constituting the
Required Lenders shall have signed a counterpart hereof (whether the same or different
counterparts) and shall have delivered (including by way of facsimile or other electronic
transmission) the same to White & Case LLP, 1155 Avenue of the Americas, New York, NY 10036
Attention: Lisa Alexander (facsimile number: 212-354-8113 / e-mail address:
lalexander@whitecase.com);

(ii) there shall have been delivered to Administrative Agent copies of resolutions of
the Board of Directors of each Credit Party approving and authorizing the execution,
delivery and performance of this Seventh Amendment and the Credit Agreement as amended by
this Seventh Amendment, certified as of the Seventh Amendment Effective Date by the
corporate secretary or an assistant secretary of such Credit Party as being in full force
and effect without modification or amendment;

(iii) the Administrative Agent shall have received from the U.S. Borrower fully
executed counterparts of such amendments, modifications, acknowledgements, confirmations
and/or supplements to the respective Security Documents and commitments to provide such
endorsements to existing title policies (or new title policies) with respect to U.S.
Mortgaged Properties, in each case as are reasonably requested by the Administrative Agent
or the Required Lenders to ensure that all Obligations are secured by, and entitled to the
benefits of, the relevant Security Documents;

(iv) the Administrative Agent shall have received a solvency certificate from the chief
financial officer or another senior financial officer of the U.S. Borrower in the form of
Exhibit J to the Credit Agreement, except that such certificate shall be dated the Seventh
Amendment Effective Date and shall be modified (to the satisfaction of the Administrative
Agent and the Required Lenders) to provide that such certificate is being provided after
giving effect to the Seventh Amendment Effective Date; and

(v) the Borrowers shall have paid to the Administrative Agent and the Lenders all fees,
costs and expenses payable to the Administrative Agent and the Lenders to the extent then
due pursuant to the Credit Agreement;

provided however that in the event that the requirements of clause (iii) of this
Section 5 are not satisfied on the date that all of the other conditions set forth in this Section
5 shall have been satisfied, this Seventh Amendment shall nevertheless be deemed to have become
effective and the Seventh Amendment Effective Date shall be deemed to have occurred,
provided that the U.S. Borrower shall take all actions required to satisfy the requirements
of clause (iii) of this Section 5 which were not satisfied on the Seventh Amendment Effective Date
within 10 calendar days following the Seventh Amendment Effective Date (or such later date not to
exceed 30 calendar days following the Seventh Amendment Effective Date as shall be determined by
the Administrative Agent or the Required Lenders in their respective sole discretion). Any failure
to comply with the provisions of the immediately preceding proviso shall be deemed to be an Event
of Default for all purposes of the Credit Agreement.

6. The U.S. Borrower hereby covenants and agrees that, so long as the Seventh Amendment
Effective Date occurs, it shall pay to each Lender which executes and delivers to the
Administrative Agent (or its designee) a counterpart hereof by 12:00 P.M. (New York City time) on
March 13, 2006, a non-refundable cash fee (the “Amendment Fee”) in Dollars in an amount
equal to 50 basis points (0.50%) on an amount equal to the sum of (i) the aggregate principal
amount of all Term Loans (using the Dollar Equivalent of all Euro Denominated Term Loans) of such
Lender outstanding on the Seventh Amendment Effective Date plus (ii) the Multicurrency
Facility Revolving Loan Commitment of such Lender as in effect on the Seventh Amendment Effective
Date. The Amendment Fee shall not be subject to counterclaim or set-off, or be otherwise affected
by, any claim or dispute relating to any other matter. The Amendment Fee shall be paid by the U.S.
Borrower to the Administrative Agent for distribution to the relevant Lenders not later than the
third Business Day following the Seventh Amendment Effective Date.

7. By executing and delivering a copy hereof, each Credit Party hereby agrees that all
Obligations of the Credit Parties shall be fully guaranteed pursuant to the relevant Guaranties and
shall be fully secured pursuant to the Security Documents, in each case in accordance with the
respective terms and provisions thereof and that this Seventh Amendment does not in any manner
constitute a novation of any Obligations under any of the Credit Documents.

8. From and after the Seventh Amendment Effective Date, all references in the Credit Agreement
and each of the other Credit Documents to the Credit Agreement shall be deemed to be references to
the Credit Agreement, as modified hereby.

* * *

1

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to
execute and deliver this Seventh Amendment as of the date first above written.

	 	 	 	EXIDE
TECHNOLOGIES, as a Borrower

	 	 	 	By:     

Name:

Title:

	 	 	 	EXIDE
GLOBAL HOLDING

NETHERLANDS C.V.,

as a Borrower

	 	 	 
	By:

	 	Exide Technologies

its general partner

	 	 	 	By:     

Name:

Title:

	 	 	 	DEUTSCHE BANK AG NEW YORK BRANCH,

Individually and as Administrative Agent

	 	 	 	By:     

Name:

Title:

	 	 	 	By:     

Name:

Title:

2

Each of the undersigned, each being a Subsidiary Guarantor under, and as defined in, the
Credit Agreement referenced in the foregoing Seventh Amendment, hereby consents to the entering
into of the Seventh Amendment and agrees to the provisions thereof (including, without limitation,
Part II, Section 7 thereof).

	 
	 

	DIXIE METALS COMPANY

By:

	 

	Name:

	Title:

	 

	EXIDE DELAWARE LLC

By: Exide Technologies, its sole manager

By:

	 

	Name:

	Title:

	 

	EXIDE ILLINOIS, INC.

By:

	 

	Name:

	Title:

	 

	GNB BATTERY TECHNOLOGIES JAPAN, INC.

By:

	 

	Name:

	Title:

	 

	REFINED METALS CORPORATION

By:

	 

	Name:

	Title:

	 

	RBD LIQUIDATION, LLC

By:

	 

	Name:

	Title:

	 

	EH INTERNATIONAL, LLC

By: Exide Technologies, its sole member

By:

	 

	Name:

	Title:

	 

3

	 
	 

	INGALLS POWER PRODUCTS

By:

	 

	Name:

	Title:

	 

4

	 
	 

	EXIDE BELIGIUM SPRL

By:

	 

	Name:

	Title:

	 

	NATIONAL BATTERY DISTRIBUTION LIMITED

(formerly Gemala Ireland (Holdings) Limited)

By:

	 

	Name:

	Title:

	 

	EXIDE CANADA CORPORATION

By:

	 

	Name:

	Title:

	 

	EXIDE DENMARK AS

By:

	 

	Name:

	Title:

	 

	CMP BATTERIES LTD.

By:

	 

	Name:

	Title:

	 

	DETA UK LIMITED

By:

	 

	Name:

	Title:

	 

	EURO EXIDE CORPORATION LIMITED

By:

	 

	Name:

	Title:

	 

	EXIDE TECHNOLOGIES (TRANSPORTATION) LIMITED

(formerly Exide (Dagenham) Limited)

By:

	 

	Name:

	Title:

	 

	EXIDE (HOLDINGS) LIMITED

By:

	 

	Name:

	Title:

	 

	MBD NATIONAL LIMITED

By:

	 

	Name:

	Title:

	 

	CEAC, COMPAGNIE EUROPEENE D’ACCUMLATEURS, SAS

By:

	 

	Name:

	Title:

	 

	EXIDE HOLDING EUROPE SAS

By:

	 

	Name:

	Title:

	 

	DEUTSCHE EXIDE GMBH

By:

	 

	Name:

	Title:

	 

	EXIDE ITALIA S.R.L.

By:

	 

	Name:

	Title:

	 

	INDUSTRIA COMPOSIZIONI STAMPATE, SPA

By:

	 

	Name:

	Title:

	 

	EXIDE HOLDING NETHERLANDS B.V.

By:

	 

	Name:

	Title:

	 

	EXIDE TECHNOLOGIES HOLDING, B.V.

By:

	 

	Name:

	Title:

	 

	EXIDE TECHNOLOGIES NEDERLAND, B.V.

By:

	 

	Name:

	Title:

	 

	CENTRA S.A.

By:

	 

	Name:

	Title:

	 

	SONULAR – SOCIEDADE NACIONAL DE METALURGIA, LDA.

By:

	 

	Name:

	Title:

	 

	SOCIEDADE PORTUGUESA DO ACUMULADOR TUDOR, S.A.

By:

	 

	Name:

	Title:

	By:

	 

	Name:

	Title:

	 

	CHLORIDE MOTIVE POWER IBERICA, S.L.

By:

	 

	Name:

	Title:

	 

	EXIDE TRANSPORTATION HOLDING EUROPE, S.L.

By:

	 

	Name:

	Title:

	 

	OXIVOLT, S.L.

By:

	 

	Name:

	Title:

	 

	SOCIEDAD ESPANOLA DEL ACUMULADOR TUDOR, S.A.

By:

	 

	Name:

	Title:

	 

	TUDOR ELECTRONICA, S.L.

By:

	 

	Name:

	Title:

	 

	TUDOR AB

By:

	 

	Name:

	Title:

	 

	COÖPERATIE EXIDE EUROPE U.A.

By:

	 

	Name:

	Title:

5

SIGNATURE PAGE TO THE SEVENTH AMENDMENT TO
CREDIT AGREEMENT, DATED AS OF MARCH 10, 2006, AMONG
EXIDE TECHNOLOGIES, EXIDE GLOBAL HOLDING NETHERLANDS
C.V., VARIOUS LENDERS AND DEUTSCHE BANK AG NEW YORK
BRANCH, AS ADMINISTRATIVE AGENT

Name of Institution:

By:      

Name:

Title:

6EX-10.1

EXHIBIT 10.1

AGREEMENT

This Agreement (the “Agreement”) is dated March 14, 2006 (the “Effective
Date”) and is by and among New Century Financial Corporation, a Maryland corporation (the
“Company”), and Greenlight Capital, L.P., a Delaware limited partnership (“Greenlight
LP”), Greenlight Capital L.L.C., a Delaware limited liability company, Greenlight Capital,
Inc., a Delaware corporation (“GCI”), DME Advisors, L.P., a Delaware limited partnership,
DME Advisors GP, L.L.C., a Delaware limited liability company, Greenlight Capital Qualified, L.P.,
a Delaware limited partnership, Greenlight Capital Offshore, Ltd., a British Virgin Islands
international business company, and David Einhorn, an individual (“Einhorn”) (each a
“Greenlight Party” and collectively the “Greenlight Parties”). Entering into this
agreement shall not be deemed to be an admission that the Greenlight Parties are a “group” for the
purposes of Section 13(d) of the Exchange Act (as such term is hereinafter defined) and Regulation
13D-G thereunder. In consideration of and reliance upon the mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:

Section 1. Defined Terms. For purposes of this Agreement:

1.1 The terms “Affiliate” and “Associate” shall have the meanings set forth in
Rule 12b-2 promulgated by the Securities and Exchange Commission (the “SEC”) under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”).

1.2 The term “Charter” shall mean the charter of the Company, as the same may be
amended from time to time.

1.3 The term “Controlled Affiliate” shall mean any Affiliate of a Person that such
Person possesses, directly or indirectly, the power to direct or cause the direction of the
management and policies of, whether through the ownership of voting securities, by contract, or
otherwise.

1.4 The term “Representatives” means and includes the directors, officers, members,
general partners, employees, agents, consultants, advisors or other representatives, including
legal counsel, accountants and financial advisors of a Person.

1.5 Terms used but not defined herein shall have the respective meanings assigned to such
terms in the Charter in effect as of the Effective Date without giving effect to the introductory
phrase in Section 5.2(a) of the Charter.

Section 2. Representations and Warranties of the Company. As of the Effective Date:

2.1 The Company hereby represents and warrants to the Greenlight Parties that this Agreement
has been duly authorized, executed and delivered by the Company, and is a valid and binding
obligation of the Company, enforceable against the Company in accordance with its terms.

2.2 The Company hereby represents and warrants to the Greenlight Parties that it has taken all
necessary action required under the Charter to comply with the provisions of the Charter in
connection with this Agreement and that the Company’s execution, delivery and performance of this
Agreement does not violate the Charter.

2.3 The Company hereby represents and warrants to the Greenlight Parties that the Board
Documents (as such term is hereinafter defined) are substantially similar to the documents that are
required to be signed by all members of the Company’s Board of Directors.

Section 3. Representations and Warranties of the Greenlight Parties. As of the
Effective Date:

3.1 Each Greenlight Party hereby represents and warrants to the Company that this Agreement
has been duly authorized, executed and delivered by such Greenlight Party, and is a valid and
binding obligation of such Greenlight Party, enforceable against such Greenlight Party in
accordance with its terms.

3.2 Each Greenlight Party hereby represents and warrants to the Company that such Greenlight
Party is the “beneficial owner” (as such term is defined in Rule 13d-3 promulgated by the SEC under
the Exchange Act) of only the number of shares of the Company’s Capital Stock (including any direct
or indirect rights, options or agreements to acquire Capital Stock) as set forth on Schedule A
hereto, and that except as set forth on Schedule A neither such Greenlight Party nor any of its
Controlled Affiliates Beneficially Own or Constructively Own, or have any rights, options or
agreements to acquire or vote, any other Capital Stock.

3.3 During the Standstill Period (as such term is hereinafter defined), each Greenlight Party
shall deliver an updated Schedule A to the Company on a quarterly basis in arrears (no later than
April 15, July 15, October 15 and January 15 of each year) (each such date being the “Quarterly
Date”); provided, however, that no Greenlight Party will be required to provide
such report to the extent that the information otherwise required to be contained therein is
already reflected in a Schedule 13D or Form 3 or 4 filed with the SEC.

3.4 All of the representations and warranties set forth in the Tax Representation Letter (as
such term is hereinafter defined) are and will be true, correct and complete as of the Effective
Date and each Quarterly Date.

Section 4. Ownership Waiver.

4.1 The Board has adopted, declared advisable and recommends for stockholder approval at the
Company’s 2006 annual meeting of stockholders (the “2006 Annual Meeting”) an amendment (the
“Amendment”) to the Charter, in substantially the form attached as Exhibit A hereto. If
the Amendment is adopted by the requisite vote of the stockholders of the Company, the Company
shall cause the Amendment to be promptly filed (and in any event filed no later than one (1)
business day after the date of the 2006 Annual Meeting) with the Maryland State Department of
Assessments and Taxation (the “SDAT”). If the Amendment is not approved and filed with the
Maryland State Department of Assessments and Taxation by the Waiver Effective Date (as hereinafter
defined), the Company’s Board of Directors will, effective as of the Waiver Effective Date, reduce
the Ownership Limit from 9.8% to the New Ownership Limit for all stockholders of the Company,
except that (i) the Greenlight Parties and their Controlled Affiliates will be granted an Excepted
Holder Limit equal to the Greenlight Limit pursuant to the terms and conditions of this Agreement
and (ii) any Person who then Beneficially Owns or Constructively Owns Capital Stock in excess of
the New Ownership Limit (each such Person identified in this clause (ii), an “Excess
Owner”), will pursuant to Section 5.2(h) of the Charter, be subject to the New Ownership Limit
only prospectively, and the ability of such Excess Owner to own in excess of the New Ownership
Limit shall correspondingly be reduced as and to the extent such Excess Owner’s percentage
ownership in the Company decreases until such Excess Owner’s percentage ownership in the Company is
equal to the New Ownership Limit. For purposes hereof, a Person and its Affiliates and Associates
shall not be treated as separate Excess Owners. The “New Ownership Limit” means, as of the
day immediately preceding the Waiver Effective Date, the greater of (i) 5% of the lesser of the
aggregate number or the aggregate value of the outstanding shares of any class or series of Capital
Stock or (ii) a percentage of the lesser of the aggregate number or the aggregate value of the
outstanding shares of any class or series of Capital Stock where such percentage is the largest
percentage (if any) of the then outstanding Common Stock, that if utilized as the New Ownership
Limit for purposes of calculating the Greenlight Percentage (as such term is hereinafter defined),
would yield a Greenlight Percentage equal to 19.6% taking into account the ownership of the top
four beneficial owners as of such date (other than the Greenlight Parties and their Controlled
Affiliates), where such share ownership is determined on the basis of the number of shares of
Common Stock which a Person Beneficially Owns or Constructively Owns and a Person and its
Affiliates and Associates are not treated as separate owners.

4.2 Effective upon the earlier to occur of (a) the date of the filing of the Amendment with
the SDAT and (b) the close of business on May 11, 2006 (and regardless of whether or not the
Amendment is approved by the Company’s stockholders) (the “Waiver Effective Date”), the
Greenlight Parties, together with their Controlled Affiliates, shall be collectively exempted from
the Ownership Limit as applied to the ownership of Common Stock, and the Greenlight Parties,
together with their Controlled Affiliates, shall be an Excepted Holder of Common Stock, with an
Excepted Holder Limit for the Greenlight Parties, together with their Controlled Affiliates, in the
aggregate equal to the Greenlight Limit (as such term is hereinafter defined), so long as each
Greenlight Party executes and delivers on or prior to the Effective Date a tax representation
letter in the form attached as Exhibit B hereto (the “Tax Representation Letter”) and the
contents thereof are true, correct and complete as of the date provided and the Waiver Effective
Date (the “Waiver”); provided, however, that: (a) the Greenlight Parties,
together with their Controlled Affiliates, collectively shall not Beneficially Own or
Constructively Own in excess of 19.6% in the aggregate or such lower percentage, as may be required
to calculate such percentage pursuant to Section 4.3 (the “Greenlight Percentage”) in the
lesser of the number of shares or value, of the outstanding shares of Common Stock of the Company
(the “Greenlight Limit”) or which, taking into account any shares of Capital Stock of the
Company of any other class or series Beneficially Owned or Constructively Owned by the Greenlight
Parties, together with their Controlled Affiliates, would cause the Greenlight Parties, together
with their Controlled Affiliates, collectively to Beneficially Own or Constructively Own, in the
aggregate, in excess of the Greenlight Percentage, in the lesser of the number of shares or value,
of the outstanding shares of Capital Stock of the Company; (b) the Greenlight Parties, together
with their Controlled Affiliates, shall not Beneficially Own or Constructively Own shares of Common
Stock which, taking into account any shares of Capital Stock of the Company of any other class or
series Beneficially Owned or Constructively Owned by the Greenlight Parties, together with their
Controlled Affiliates, would result in the Company being “closely held” within the meaning of
Section 856(h) of the Code, or otherwise cause the Company to fail to qualify as a real estate
investment trust under the Code; (c) the Greenlight Parties, together with their Controlled
Affiliates, shall not Beneficially Own or Constructively Own an interest in a tenant of the Company
(or a tenant of any entity owned or controlled by the Company) that would cause the Company to own,
actually or Constructively, more than a 9.9% interest (as set forth in Section 856(d)(2)(B) of the
Code) in such tenant, and (d) if at any time the Greenlight Parties, together with their Controlled
Affiliates, would Beneficially Own or Constructively Own shares of Common Stock in violation of the
conditions set forth in clauses (a), (b) or (c) above or referred to in the Tax Representation
Letter or that would cause the representations and warranties contained in the Tax Representation
Letter to be untrue, any such shares of Common Stock resulting in the violation of any of the
conditions set forth in clauses (a), (b) or (c) above or referred to in the Tax Representation
Letter or that would cause any of the representations and warranties contained in the Tax
Representation Letter to be untrue shall constitute Stock-in-Trust and be treated as such as
provided in and pursuant to Section 5.4 of the Charter or any such purported Transfer shall be void
ab initio.

4.3 Notwithstanding the foregoing, if the Amendment is not adopted by the requisite vote of
the stockholders of the Company and filed with the SDAT by the Waiver Effective Date, then the
Greenlight Percentage on effectiveness of the Greenlight Waiver shall be the lesser of (x) 19.6% or
(y) a percentage where the number in such percentage is determined by subtracting from 49 the sum
of the percentage ownerships of the then outstanding Common Stock of the four owners with the
largest share ownership of shares of Common Stock as of the Waiver Effective Date (other than the
Greenlight Parties and their Controlled Affiliates), where such share ownership is determined on
the basis of the number of shares of Common Stock which a Person Beneficially Owns or
Constructively Owns and a Person and its Affiliates and Associates are not treated as separate
owners and where if any of such four owners with the largest share ownership owns less than the New
Ownership Limit, such owner shall be deemed, for purposes of this calculation to own an amount
equal to the New Ownership Limit. From and after the Waiver Effective Date, as and to the extent
that the ownership percentage of Common Stock Beneficially Owned or Constructively Owned of an
Excess Owner shall decrease (but limited to a decrease of ownership of Common Stock to the New
Ownership Limit), the Greenlight Percentage shall increase by an amount equal to such decrease
until such time as the Greenlight Percentage is 19.6%. In furtherance of this Section 4.3, the
Company shall require each Person who has obtained any such excess ownership on or prior to the
Waiver Effective Date to provide to the Company the information set forth in Section 5.2(e)(iii) of
the Charter prior to the Waiver Effective Date. If the Amendment is adopted by the required vote
of the Company’s stockholders after the Waiver Effective Date and filed with the SDAT, then (I) the
Greenlight Percentage shall be increased upon the date of such filing to 19.6% and (II) to the
extent permitted by law and the Charter, including without limitation, Section 7.3 thereof, the
Company will use commercially reasonable efforts to adjust the Ownership Limit to a percentage that
would allow each of the Company’s stockholders to own the maximum number of shares allowable under
the Charter after giving effect to the new Greenlight Limit and any other waivers then in effect.

4.4 The Waiver shall only be effective for so long as the Greenlight Parties and their
Controlled Affiliates are in compliance with the terms of this Agreement (after giving effect to
any cure period provided below) and the conditions referred to in the Tax Representation Letter.
If the Greenlight Parties or their Controlled Affiliates shall breach any of their commitments or
obligations under this Agreement, and, if such breach is susceptible of cure, shall not have cured
such breach within ten (10) days after notice thereof from the Company, the Waiver shall be
immediately rescinded and any and all shares of Common Stock that the Greenlight Parties and their
Controlled Affiliates Beneficially Own or Constructively Own in excess of the then existing
Ownership Limit shall constitute Stock-in-Trust and be treated as such as provided in and pursuant
to Section 5.4 of the Charter; provided, however, that any breach of the conditions
set forth in Section 4.2(a), (b) or (c) above or referred to or the representations and warranties
in the Tax Representation Letter shall not be subject to cure or a notice period or any materiality
qualifications. If the Waiver is rescinded pursuant to the terms of the Agreement and the
Amendment is not in effect, then, to the extent permitted by law and the Charter, including without
limitation, Section 7.3 thereof, the Company will use commercially reasonable efforts to cause the
Ownership Limit to be automatically adjusted concurrently with such rescission to a percentage that
would allow each of the Company’s stockholders to own the maximum number of shares allowable under
the Charter after giving effect to any other waivers then in effect (the then-current Ownership
Limit, as so adjusted (if applicable, the “Post-Rescission Limit”). The Company
acknowledges that only shares of Common Stock owned by the Greenlight Parties or their Controlled
Affiliates in excess of the Post-Rescission Limit may be transferred to Trust pursuant to the
Charter in the event that the Greenlight Parties or their Controlled Affiliates cause the
rescission of the Waiver.

Section 5. Board Nomination. The Company agrees (i) to increase the size of its Board
of Directors to eleven (11) members, (ii) to increase the size of Class III of its Board of
Directors from three (3) to four (4) members, (iii) to appoint Einhorn to its Board of Directors,
as a Class III director, effective as of March 31, 2006, to serve for the remainder of the term of
the Class III directors (which expires at the 2006 Annual Meeting) and until his successor is duly
elected and qualified, (iv) to include Einhorn in its Board of Directors’ slate of nominees for
election as a Class III director of the Company at the 2006 Annual Meeting, (v) to nominate Einhorn
as a member of the Company’s Board of Directors at the 2006 Annual Meeting, (vi) not to take action
to remove Einhorn as a member of the Company’s Board of Directors other than for cause, (vii) to
cause the Company’s proxy statement for the 2006 Annual Meeting to include a proposal to approve
the Amendment and the recommendation of the Board of Directors that the Amendment be approved,
(viii) to cause all proxies received by the Company to be voted in the manner specified by such
proxies and all proxies for which a vote is not specified to be voted for the election of Einhorn
as a member of the Company’s Board of Directors and for each other proposal for which the Company’s
Board of Directors recommends a vote in favor, (ix) to use its commercially reasonable efforts to
cause the 2006 Annual Meeting to be held on May 10, 2006, (x) to use its commercially reasonable
efforts to ensure that the Company’s slate of directors is elected at the 2006 Annual Meeting and
each other proposal for which the Company’s Board of Directors recommends a vote in favor are
approved by the necessary stockholder vote at the 2006 Annual Meeting, and (xi) to cause its
Controlled Affiliates and seek to cause its Affiliates, to vote all shares of Common Stock over
which they have voting power in favor of the Company’s slate of directors and the Amendment,
clauses (i) through (v) above subject to Einhorn’s execution and delivery on or prior to March 31,
2006 of the following documents, each of which has been provided to Einhorn: (a) a Form 3, (b) a
Power of Attorney (provided that the Greenlight Parties will be provided any filing on the business
day prior to the proposed day for the filing thereof in order to review and comment), (c) the
Company’s Insider Trading Policy and acknowledgement form (it being agreed and understood that the
Greenlight Parties need only preclear the fact that the Greenlight Parties may trade and not the
specific terms of any trades with the General Counsel or his designee), (d) the Company’s Code of
Business Conduct and Ethics and acknowledgement form, (e) the Company’s standard form of
Indemnification Agreement and (f) the Company’s standard form of director and officer questionnaire
(collectively with the documents described in clauses (a), (b), (c), (d) and (e) above, the
“Board Documents”). If at any time during the Standstill Period, Einhorn is unable to
serve, due to death or disability, as a nominee or a director of the Company, the Greenlight
Parties may select a replacement nominee or director (a “Replacement Designee”), as the
case may be, subject to such Replacement Designee satisfying the Company’s Corporate Governance
Guidelines and completing the Board Documents.

Section 6. 2006 Annual Meeting. No Greenlight Party shall, each Greenlight Party
shall cause its Controlled Affiliates not to, and each Greenlight Party will not authorize or
knowingly permit its other Affiliates and Associates on its behalf to, (i) solicit proxies or
engage in a proxy contest with respect to the election of directors or any other proposal to be
considered at the 2006 Annual Meeting or present any proposal for consideration at such annual
meeting of stockholders or (ii) encourage any other Person to solicit proxies or engage in a proxy
contest with respect to the election of directors or any other proposal to be considered at the
2006 Annual Meeting or present any other proposal for consideration at the 2006 Annual Meeting. In
furtherance of the foregoing, Greenlight LP hereby withdraws its letter dated February 16, 2006
(the “Greenlight Notice”) providing notice to the Company of its intention to nominate
certain individuals for election as directors of the Company at the 2006 Annual Meeting (the
“Stockholder Nomination”), and Greenlight LP and the other Greenlight Parties shall
immediately cease all efforts, direct or indirect, in furtherance of the Stockholder Nomination and
any related solicitation, and any other action to obtain or influence control of the Company
(provided, that the restriction on actions to obtain or influence control of the Company
shall terminate on the ninetieth (90th) day following Einhorn joining the Company’s Board of
Directors), and shall not vote, deliver or otherwise use any proxies heretofore obtained in
connection with the Stockholder Nomination. Unless the Company shall have breached any of its
obligations under this Agreement, and, if such breach is susceptible of cure, shall not have cured
such breach within ten (10) days after notice thereof from GCI, on behalf of the Greenlight
Parties, each Greenlight Party agrees to vote, and each Greenlight Party shall cause its Controlled
Affiliates to vote, all of its shares of Capital Stock which it Beneficially Owns as of the record
date for the 2006 Annual Meeting in favor of each of those individuals nominated for election as
directors at the 2006 Annual Meeting by the Company’s Board of Directors for election at the 2006
Annual Meeting, in favor of the ratification of the Company’s registered public accounting firm, in
favor of the proposal to approve the Amendment, in favor of the amendment to the Company’s 2004
Performance Incentive Plan in substantially the form attached hereto as Exhibit C and in favor of
the amendment to the Charter to increase the number of authorized shares of designated as preferred
stock from 10,000,000 shares to 25,000,000 shares (each a “Proposal” and collectively the
“Proposals”). Notwithstanding the foregoing, the Company agrees that if the Company
breaches its obligations set forth in Section 4 or Section 5, and, if such breach is susceptible of
cure, such breach remains uncured for ten (10) days after GCI, on behalf of the Greenlight Parties,
provides the Company with notice thereof, in addition to any other damages and injunctive relief to
which the Greenlight Parties might be entitled, the Greenlight Notice and the Stockholder
Nomination will be reinstated effective as of February 16, 2006.

Section 7. Standstill Period. Each Greenlight Party hereby agrees that, from the date
of this Agreement and continuing until the earlier of (i) 11:59 p.m. Pacific time on the date of
the Company’s 2009 annual meeting of stockholders, (ii) the date Einhorn or a Replacement Designee,
as the case may be, ceases to serve on the Company’s Board of Directors or (iii) such date, if any,
as the Company shall have breached, and, if such breach is susceptible of cure, failed to cure such
breach within ten (10) days after notice thereof from GCI, on behalf of the Greenlight Parties, any
of its commitments or obligations hereunder (such period, the “Standstill Period”), it
shall not, and it shall cause its Controlled Affiliates not to, and it shall not authorize or
knowingly permit its other Affiliates, Associates and Representatives on its behalf to (and it
shall not, and its Affiliates, Associates and Representatives on its behalf shall not, assist or
knowingly encourage others to), without the prior written consent of the Company, in each instance,
in any manner:

7.1 seek to have called, or cause to be called, any meeting of stockholders of the Company, or
seek or propose to influence or control the management or any policies or actions of the Company
(provided, that the restriction on seeking or proposing to influence or control the
management or any policies or actions of the Company shall terminate on the ninetieth (90th) day
following Einhorn joining the Company’s Board of Directors) or to obtain additional representation
on the Company’s Board of Directors, or solicit or participate in the solicitation of, any proxies
or consents with respect to any securities of the Company or seek to advise or influence any Person
with respect to the voting of any voting securities of the Company other than solicitations or
acting as a “participant” in support of all of the Company’s nominees (including Einhorn) and the
Proposals as contemplated by Section 5 with respect to the 2006 Annual Meeting;

7.2 make or seek permission to make any public announcement with respect to any of the matters
contained in this Section 7 except as contemplated by this Agreement;

7.3 enter into any discussions, negotiations, arrangements or understandings with any third
party with respect to any of the matters or activities described in this Section 7, or deposit any
securities of the Company in a voting trust or subject any securities of the Company to any
arrangement, understanding or agreement with respect to the voting of such securities, or otherwise
form, join or in any way participate in a partnership, syndicate or other group (including, without
limitation, a “group” (as defined in Section 13(d)(3) of the Exchange Act)) in connection with any
of the matters or activities described in this Section 7, or otherwise act in concert with any
Person for the purpose of voting any securities of the Company or for the purpose of taking any of
the actions described in this Section 7 other than solely with the other Greenlight Parties or one
or more of the Controlled Affiliates of any Greenlight Party; or

7.4 publicly disclose any intent, purpose, plan or proposal for the Company or any of its
Representatives to amend or waive any provision of this Section 7.

Notwithstanding the foregoing, nothing in this Agreement shall be deemed to in any way to
restrict or limit (a) Einhorn’s ability to discuss any matter confidentially with the Company, the
Company’s Board of Directors or any of its members or (b) the Greenlight Parties’ ability to
communicate, on a confidential basis, with their Representatives.

Section 8. Non-Disparagement. During the Standstill Period, all of the parties hereto
agree not to, agree to cause their Controlled Affiliates not to, and agree not to authorize or
knowingly permit on its behalf their other Affiliates, Associates and Representatives to, publicly
take any action or make any statement, written or oral, which disparages the other or its
Affiliates, Associates or Representatives, or prior to the ninetieth (90th) day following Einhorn
joining the Company’s Board of Directors, its business or practices or the decisions of the
Company’s Board of Directors, other than in connection with confidential, non-public discussions
between Einhorn and the Company; provided, however, that at any time after the
ninetieth (90th) day following Einhorn joining the Company’s Board of Directors, this Section 8
shall not prevent Einhorn from taking any action or making any statement, written or oral, which
may be deemed to disparage the Company, the Company’s business or practices or the decisions of the
Company’s Board of Directors.

Section 9. Termination of Confidentiality Agreement. The Company and GCI hereby
terminate that certain Confidentiality Agreement between the Company and GCI dated as of
September 9, 2005, effective upon the Effective Date. Such agreement shall be of no further force
and effect after the Effective Date, and neither the Company nor GCI shall have any surviving
obligations, rights, or duties thereunder after the Effective Date.

Section 10. Role of Mr. Einhorn on the Board. Einhorn or a Replacement Designee, as
the case may be, upon election to the Company’s Board of Directors, will be governed by the same
protections and obligations regarding confidentiality, conflicts of interests, fiduciary duties,
trading and disclosure policies and other governance guidelines, and shall have the same rights and
benefits, including (but not limited to) with respect to insurance, compensation and fees, as are
applicable to all independent directors of the Company. Subject to the terms and conditions of the
Company’s equity incentive plans and applicable law, Einhorn or a Replacement Designee, as the case
may be, may allocate any compensation received in connection with serving on the Company’s Board of
Directors to any of the Greenlight Parties.

Section 11. Public Announcement; Filings.

11.1 The Company and the Greenlight Parties shall announce this Agreement and the material
terms hereof by means of a joint press release in the form of Exhibit D hereto (the “Press
Release”) as soon as practicable on or after the date hereof. Neither the Company, the
Greenlight Parties nor any of their respective Controlled Affiliates shall issue, and shall not
authorize or knowingly permit on its behalf their other Affiliates, Associates and Representatives
to issue, any other press releases or make any filings with the SEC concerning the terms hereof or
the relationship between the parties without the prior written consent of the other, which consent
shall not be unreasonably withheld, delayed or conditioned, except where such announcement is
required by applicable law, the rules of any applicable securities exchange or valid legal process,
in which case the parties shall consult with each other in advance to the extent reasonably
practicable. Notwithstanding the foregoing, the Company acknowledges that the Greenlight Parties
will, subject to the Company’s right to be consulted pursuant to the foregoing sentence, file an
amendment to their Schedule 13D which may contain the Press Release and this Agreement as an
exhibit and explain that Greenlight LP is withdrawing the Greenlight Notice.

11.2 The Company agrees that the Company’s proxy statement for the 2006 Annual Meeting and all
other solicitation materials to be delivered to stockholders in connection with the 2006 Annual
Meeting will be prepared in accordance with, and in furtherance of, this Agreement. The Company
will provide the Greenlight Parties with copies of any proxy materials or other solicitation
materials at least two (2) business days, in the case of proxy statements, and at least one (1)
business day, in the case of other solicitation materials, in advance of filing such materials with
the SEC or disseminating the same in order to permit the Greenlight Parties a reasonable
opportunity to review and comment on such materials. The Greenlight Parties will provide as
promptly as reasonably practicable all information required under applicable law to be included in
the Company’s proxy statement for the 2006 Annual Meeting and any other solicitation materials to
be delivered to stockholders of the Company in connection with the 2006 Annual Meeting.

Section 12. No Impairment. The Company will not take any action, by amendment of the
Charter or its Bylaws, through reorganization, merger, dissolution or any other voluntary action,
to avoid or seek to avoid the observance or performance of any of the terms of this Agreement, but
will at all times in good faith assist in the carrying out of all such terms and in the taking of
all such action as may be necessary or appropriate in order to protect the rights of the Greenlight
Parties against impairment. Without limiting the foregoing, the Company will not (a) adopt a
shareholder rights plan pursuant to which rights would become exercisable as a result of the
Greenlight Parties having Beneficial Ownership of, or becoming the Beneficial Owners of, a
percentage of shares of Common Stock that is equal to or less than the Greenlight Limit, (b) elect
to be governed by the Maryland Business Combination Act (the “MBCA”) such that any of the
Greenlight Parties or their respective Affiliates would be an “interested stockholder” under the
MBCA, (c) elect to be governed by the Maryland Control Share Acquisition Act (the “MCSAA”)
such that a vote of stockholders under the MCSAA would be required for any of the Greenlight
Parties or their Affiliates to have voting rights with respect to any of the shares of Common Stock
held or acquired by them up to the Greenlight Limit, (d) prior to the effective date of the
Amendment, issue any shares of Capital Stock to any Person that would be included in the
computation under Section 4.3 or (e) so long as the description of Einhorn’s relationship to the
Greenlight Parties set forth in the Schedule 13D filed by Einhorn and certain other Greenlight
Parties (as amended through the date hereof) and in the Greenlight Notice remains accurate in all
material respects, assert that the condition set forth in Section 3(b) of the Tax Representation
Letter or Section 4.2(b) of this Agreement is breached as a result of Einhorn’s Beneficial
Ownership or Constructive Ownership of Common Stock (but excluding ownership directly or indirectly
under Section 542(a)(2) of the Code, taking into account, for this purpose, constructive ownership
determined under Section 544 of the Code, as modified by Section 856(h)(1)(B) of the Code).

Section 13. Miscellaneous. Each of the parties hereto hereby irrevocably and
unconditionally consent to submit to the jurisdiction of the courts of the State of Maryland and
the United States of America, for any actions, suits or proceedings arising out of or relating to
this Agreement and the transactions contemplated hereby, and further agree that service of any
process, summons, notice or document by United States registered mail shall be effective service of
process for any action, suit or proceeding brought against such party in any such court. Each of
the parties hereto hereby irrevocably and unconditionally waive, and will cause their respective
Controlled Affiliates to waive, any objection to the laying of venue of any action, suit or
proceeding arising out of this Agreement or the transactions contemplated hereby, in the courts of
the State of Maryland and the United States of America, and hereby further irrevocably and
unconditionally waive, and will cause their respective Controlled Affiliates to waive, and agree
not to plead or claim in any such court that any such action, suit or proceeding brought in any
such court has been brought in an inconvenient forum. THIS AGREEMENT SHALL BE GOVERNED IN ALL
RESPECTS, INCLUDING VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF MARYLAND
APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE WITHOUT GIVING EFFECT
TO THE CHOICE OF LAW PRINCIPLES OF SUCH STATE.

Section 14. Remedies. It is understood and agreed that money damages would not be a
sufficient remedy for any actual or threatened breach of this Agreement by the Greenlight Parties
or the Company and their respective Affiliates, Associates or Representatives and that the Company
and the Greenlight Parties shall be entitled to equitable relief, including injunctions and
specific performance, as a remedy for any such breach and the Greenlight Parties and the Company
agree to waive, and to cause their Controlled Affiliates to waive, any requirement for the securing
or posting of any bond in connection with any such remedy and agrees not to make a motion or demand
therefor. Such remedies shall not be deemed to be the exclusive remedies available to the Company
or the Greenlight Parties for a breach of this Agreement by the Greenlight Parties or the Company,
respectively, or any of their Affiliates, Associates or Representatives, but shall be in addition
to all other rights and remedies otherwise available at law or equity to the Company.

Section 15. Assignment. None of the Greenlight Parties may transfer, assign, pledge
or hypothecate, by operation of law or otherwise, its rights and obligations under this Agreement
without the prior written consent of the Company, except that a Greenlight Party may assign its
rights and obligations hereunder without prior written consent of the Company to any Controlled
Affiliate of a Greenlight Party, provided that no such assignment shall relieve the assigning party
of its obligations hereunder, and any such assignee must execute and deliver to the Company a
countersigned copy of the Tax Representation Letter.

Section 16. Fees and Expenses. Within fifteen (15) business days after receiving
documentation thereof, the Company shall pay to GCI, on behalf of all of the Greenlight Parties,
the documented out-of-pocket fees and expenses, including without limitation the fees and expenses
of any Representatives, up to a maximum of $300,000 (the “Cap”), incurred through the
Effective Date by the Greenlight Parties in connection with this Agreement, any discussions between
the Greenlight Parties and the Company after the filing of Amendment No. 3 to the Greenlight
Parties’ Schedule 13D filed with the SEC on April 28, 2005 and the proxy contest referred to in the
Greenlight Notice. All fees and expenses in excess of the Cap, as well as all fees and expenses
incurred by the Company, including without limitation the fees and expenses of any Representatives,
shall be paid by the party incurring such fees and expenses.

Section 17. Notice. All notices and other communications hereunder shall be in
writing and shall be deemed given if delivered personally or by commercial messenger or courier
service, or mailed by registered or certified mail (return receipt requested) or sent via facsimile
(with acknowledgment of complete transmission) to the parties at the following addresses (or at
such other address for a party as shall be specified by like notice); provided,
however, that notices sent by mail will not be deemed given until received:

17.1 if to the Company, to:

New Century Financial Corporation

18400 Von Karman, Suite 1000

Irvine, California 92612

Attention: Stergios Theologides, Esq.

Facsimile No.: (949) 440-7033

with a copy to:

O’Melveny & Myers LLP

610 Newport Center Drive, 17th Floor

Newport Beach, California 92660

Attention: David Krinsky, Esq.

Facsimile No: (949) 823-6994

and to:

O’Melveny & Myers LLP

Times Square Tower

7 Times Square

New York, New York 10036

Attention: Spencer Klein, Esq.

Facsimile No: (212) 326-2061

17.2 if to the Greenlight Parties, to:

Greenlight Capital, Inc.

2 Grand Central Tower

140 East 45th Street, 24th Floor

New York, New York 10017

Attention: Mr. Daniel Roitman

Facsimile No.: (212) 973-9219

with a copy to:

Akin Gump Strauss Hauer & Feld LLP

1700 Pacific Avenue, Suite 4100

Dallas, Texas 75201

Attention: Eliot D. Raffkind, Esq.

Facsimile No.: (214) 969-4343

Section 18. Counterparts. This Agreement may be executed in two or more counterparts
which together shall constitute a single agreement.

[Remainder of Page Intentionally Left Blank]

1

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly
authorized signatories of the parties as of the Effective Date.

NEW CENTURY FINANCIAL CORPORATION

By: /s/ Brad A. Morrice

Name: Brad A. Morrice

Title: Vice Chairman, President and COO

GREENLIGHT CAPITAL, L.P.

By: Greenlight Capital, L.L.C.

its general partner

By: /s/ David Einhorn

Name: David Einhorn

Title: Senior Managing Member

GREENLIGHT CAPITAL L.L.C.

By: /s/ David Einhorn

Name: David Einhorn

Title: Senior Managing Member

GREENLIGHT CAPITAL, INC.

By: /s/ David Einhorn

Name: David Einhorn

Title: President

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized
signatories of the parties as of the Effective Date.

DME ADVISORS, L.P.

By: DME Advisors GP, L.L.C.

its general partner

By: /s/ David Einhorn

Name: David Einhorn

Title: Senior Managing Member

DME ADVISORS GP, L.L.C.

By: /s/ David Einhorn

Name: David Einhorn

Title: Senior Managing Member

GREENLIGHT CAPITAL QUALIFIED, L.P.

By: Greenlight Capital, L.L.C.

its general partner

By: /s/ David Einhorn

Name: David Einhorn

Title: Senior Managing Member

GREENLIGHT CAPITAL OFFSHORE, LTD.

By: Greenlight Capital, Inc.

its investment advisor

By: /s/ David Einhorn

Name: David Einhorn

Title: President

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized
signatories of the parties as of the Effective Date.

DAVID EINHORN

/s/ David Einhorn

2

Schedule A

Share Ownership Information

For the purposes hereof, “beneficial ownership” has the meaning of such term under Section 13(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulation 13D-G
thereunder. Greenlight Capital, L.P. and Greenlight Capital Qualified, L.P. (collectively the
“Domestic Funds”) may be deemed to “beneficially own” (within the meaning of such term under
Section 13(d) of the Exchange Act, and Regulation 13D-G thereunder) 613,000 and 1,902,300 shares of
common stock (“Common Stock”) of New Century Financial Corporation respectively. Greenlight
Capital, L.L.C., as the general partner of each of the Domestic Funds, directs the voting and
disposition of the shares owned by Domestic Funds and, therefore, may be deemed the “beneficial
owner” of any shares that may be beneficially owned by the Domestic Funds within the meaning of
Section 13(d) of the Exchange Act and Regulation 13D-G thereunder. Greenlight Capital, Inc. is
party to an investment advisory contract with Greenlight Capital Offshore, Ltd., pursuant to which
Greenlight Capital, Inc. has sole voting and dispositive power over any shares that Greenlight
Capital Offshore, Ltd. owns. Greenlight Capital, Inc., as the investment manager of Greenlight
Capital Offshore, Ltd., may be deemed the “beneficial owner” of the 2,583,500 shares of Common
Stock that may be beneficially owned by Greenlight Capital Offshore, Ltd. within the meaning of
Section 13(d) of the Exchange Act and Regulation 13D-G thereunder. DME Advisors, L.P., as
investment advisor to a managed account, and its general partner, DME Advisors GP, L.L.C., may be
deemed the “beneficial owner” of the 400,800 shares of Common Stock that may be beneficially owned
by such managed account within the meaning of Section 13(d) of the Exchange Act and Regulation
13D-G thereunder. As the Senior Managing Member of Greenlight Capital, L.L.C. and DME Advisors GP,
L.L.C. and the President of Greenlight Capital, Inc., David Einhorn directs the voting and
disposition of all of the 5,500,000 shares of Common Stock described above and, therefore, may be
deemed the “beneficial owner” of all of such shares within the meaning of Section 13(d) of the
Exchange Act and Regulation 13D-G thereunder. Each of David Einhorn, Greenlight Capital, L.L.C.,
Greenlight Capital, Inc., DME Advisors GP, L.L.C. and DME Advisors, LP disclaims all beneficial
ownership over the shares owned by Greenlight Capital, L.P., Greenlight Capital Qualified, L.P.,
Greenlight Capital Offshore, Ltd. and the managed account for which DME Advisors, LP acts as
investment advisor.

3

Exhibit A

Form of Amendment

“5.2 “Restrictions on Transfer and Ownership of Capital Stock.

Subsequent to the Initial Date (as defined below) and until the Restriction
Termination Date (as defined below), all Capital Stock of the Corporation shall be
subject to the following restrictions and limitations:

(a) Definitions. For purposes of this Article V and the
interpretation of the stock legends set forth herein, the following terms shall have
the following meanings:

“Acquire” shall mean the acquisition of Beneficial Ownership or Constructive
Ownership of Capital Stock, whether by a Transfer, Non-Transfer Event or by any
other means, including, without limitation, acquisition pursuant to the exercise of
the Acquisition Rights or any other option, warrant, pledge or other security
interest or similar right to acquire Capital Stock, but shall not include the
acquisition of any such rights unless, as a result, the acquirer would be considered
a Beneficial Owner or Constructive Owner, each as defined below.

“Acquisition Rights” shall mean, rights to Acquire Capital Stock pursuant
to:  (i) the exercise of any option or warrant issued by the Corporation; or
(ii) any pledge of Capital Stock.

“Beneficial Ownership” shall mean ownership of Capital Stock by a Person who
would be treated as an owner of Capital Stock either directly or indirectly,
including directly or indirectly under Section 542(a)(2) of the Code, taking into
account, for this purpose, constructive ownership determined under Section 544 of
the Code, as modified by Section 856(h)(1)(B) of the Code (except where expressly
provided otherwise). The terms “Beneficial Owner,” “Beneficially Owns” and
“Beneficially Owned” shall have the correlative meanings.

“Business Day” shall mean any day, other than a Saturday or Sunday, that is
neither a legal holiday nor a day on which banking institutions in New York City are
authorized or required by law, regulation or executive order to close.

“Charitable Beneficiary” shall mean, with respect to any Trust, one or more
organizations described in each of Section 170(b)(1)(A) (other than clauses (vii) or
(viii) thereof) and Section 170(c)(2) of the Code that are named by the Corporation
as the beneficiary or beneficiaries of such Trust, in accordance with the provisions
of Section 5.4(a) hereof.

“Code” shall mean the Internal Revenue Code of 1986, as amended and in effect
from time to time, or any successor statute thereto, as interpreted by the
applicable regulations thereunder. Any reference herein to a specific section or
sections of the Code shall be deemed to include a reference to any corresponding
provision of future law.

“Constructive Ownership” shall mean ownership of Capital Stock by a Person who
would be treated as an owner of such Capital Stock either directly or constructively
through the application of Section 318 of the Code, as modified by Section 856(d)(5)
of the Code. The terms “Constructively Own,” “Constructively Owned” and
“Constructive Owner” shall have the correlative meanings.

“Disqualified Organization” shall mean the United States, any state or
political subdivision thereof, any foreign government, any international
organization, any agency or instrumentality of any of the foregoing, any other
tax-exempt organization (other than a farmer’s cooperative that is described in
Section 521 of the Code) that is both exempt from income taxation and exempt from
taxation under the unrelated business taxable income provisions of the Code, and any
rural electrical or telephone cooperative (all as referred to in Section 860E(e)(5)
of the Code).

“Excepted Holder” shall have the meaning set forth in Section 5.2(f).

“Excepted Holder Limit” shall mean, provided that the affected Excepted Holder
agrees to comply with the requirements established by the Board of Directors
pursuant to Section 5.2(f), and subject to adjustment pursuant to Section 5.2(h),
the percentage limit on Beneficial Ownership or Constructive Ownership of shares of
Capital Stock established by the Board of Directors pursuant to Section 5.2(f).

“Initial Date” shall mean October 1, 2004.

“Market Price” on any date shall mean, with respect to any class or series of
outstanding shares of Capital Stock, the Closing Price for such Capital Stock on
such date. The “Closing Price” on any date shall mean the last sale price for such
 shares, regular way, or, in case no such sale takes place on such day, the average
of the closing bid and asked prices, regular way, for such shares, in either case as
reported in the principal consolidated transaction reporting system with respect to
securities listed or admitted to trading on the NYSE or, if such shares are not
listed or admitted to trading on the NYSE, as reported on the principal consolidated
transaction reporting system with respect to securities listed on the principal
national securities exchange on which such shares are listed or admitted to trading
or, if such shares are not listed or admitted to trading on any national securities
exchange, the last quoted price, or, if not so quoted, the average of the high bid
and low asked prices in the over-the-counter market, as reported by the National
Association of Securities Dealers, Inc., Automated Quotation System, or, if such
system is no longer in use, the principal other automated quotation system that may
then be in use or, if such shares are not quoted by any such organization, the
average of the closing bid and asked prices as furnished by a professional market
maker making a market in such shares selected by the Board of Directors or, in the
event that no trading price is available for such shares, the fair market value of
the shares, as determined in good faith by the Board of Directors.

“MGCL” shall mean the Maryland General Corporation Law, as amended from time to
time.

“NYSE” shall mean the New York Stock Exchange, Inc.

“Non-Transfer Event” shall mean an event other than a purported Transfer that
would cause any Person to Beneficially Own or Constructively Own Capital Stock in
excess of the Ownership Limit (or would cause the Corporation to fail to qualify as
a REIT), including, without limitation, a change in the capital structure of the
Corporation.

“Ownership Limit” shall mean not more than 9.8% of the lesser of the aggregate
number or the aggregate value of the outstanding shares of any class or series of
Capital Stock. The value of the outstanding shares of Capital Stock shall be
determined by the Board of Directors, which determination shall be conclusive for
all purposes hereof.

“Person” shall mean an individual, corporation, partnership, limited liability
company or partnership, estate, trust (including a trust qualified under Section
401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside for or
to be used exclusively for the purposes described in Section 642(c) of the Code,
association, private foundation within the meaning of Section 509(a) of the Code,
joint stock company or other entity and also includes a group as that term is used
for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended,
provided, however, that this shall not include an underwriter which
participates in a registered public offering of the Corporation’s Capital Stock (or
securities convertible into or exchangeable for Capital Stock) or an initial
purchaser which participates in a private placement of shares of the Corporation’s
Capital Stock (or securities convertible into or exchangeable for Capital Stock),
but only for a period of ninety (90) days following the date of purchase of shares
of Capital Stock by the underwriter in such public offering or the initial purchaser
in such private placement and only to the extent that purchases of shares of Capital
Stock by such underwriter or initial purchaser in such public offering or private
placement are necessary to facilitate such public offering or private placement.

“Prohibited Owner” shall mean, with respect to any purported Transfer, any
Person who, but for the provisions of Section 5.2(b), would Beneficially Own or
Constructively Own shares of Capital Stock, and if appropriate in the context, shall
also mean any Person who would have been the record owner of the shares that the
Prohibited Owner would have so owned.

“Restriction Termination Date” shall mean the first day after the Initial Date
on which the Corporation determines pursuant to Section 7.3 of this Charter that it
is no longer in the best interests of the Corporation to attempt to, or continue to,
qualify as a REIT or that compliance with the restrictions and limitations on
Beneficial Ownership, Constructive Ownership and Transfers of shares of Capital
Stock set forth herein is no longer required in order for the Corporation to qualify
as a REIT.

“Stock-in-Trust” shall mean any Capital Stock designated Stock-in-Trust
pursuant to Section 5.4(a).

“Transfer” (as a noun) shall mean any sale, transfer, gift, assignment, devise
or other disposition of Capital Stock or the right to vote or receive dividends on
Capital Stock (including without limitation (i) the granting of any option or
entering into any agreement for the sale, transfer or other disposition of Capital
Stock or the right to vote or receive dividends on Capital Stock or (ii) the sale,
transfer, assignment or other disposition or grant of any Acquisition Rights or
other securities or rights convertible into or exchangeable for Capital Stock, or
the right to vote or receive dividends on Capital Stock), whether voluntary or
involuntary, whether of record or beneficially and whether by operation of law or
otherwise. “Transfer” shall also include any transfer of interests in other
entities, and any change in relationship between two or more Persons, that results
in a change in Beneficial Ownership or Constructive Ownership of Capital Stock,
whether by operation of law or otherwise. “Transfer” (as a verb) shall have a
correlative meaning.

“Trust” shall mean any separate trust created pursuant to Section 5.4(a) below
and administered in accordance with the terms of Section 5.4 hereof, for the
exclusive benefit of any Charitable Beneficiary.

“Trustee” shall mean the trustee of the Trust, which is selected by the
Corporation but not affiliated with the Corporation or a Prohibited Owner, and any
successor trustee appointed by the Corporation.

(b) Ownership Limitation and Transfer Restrictions.

(i) Except as provided in Section 5.2(f) below, from and after the Initial Date
and prior to the Restriction Termination Date:

(v) no Disqualified Organization shall be a record holder of any shares of
Capital Stock;

(w) no Person shall Beneficially Own or Constructively Own Capital Stock in
excess of the Ownership Limit;

(x) no Person shall Acquire Capital Stock, if, as a result of such action, the
Capital Stock would be beneficially owned by fewer than 100 Persons (determined
without reference to any rules of attribution under the Code);

(y) no Person shall Acquire Capital Stock or any interest therein if, as a
result of such acquisition, the Corporation would be “closely held” within the
meaning of Section 856(h) of the Code or would otherwise fail to qualify as a REIT,
as the case may be; and

(z) no Person shall Acquire Capital Stock or any interest therein if, as a
result of such acquisition, the Corporation would Constructively Own 10% or more of
the ownership interests in a tenant of the Corporation’s real property, within the
meaning of Section 856(d)(2)(B) of the Code, or would otherwise fail to qualify as a
REIT, as the case may be.

(ii) Subject to Section 5.7, any Transfer that would result in a violation of
the restrictions in subsection (b)(i) above, shall be void ab initio as to the
purported Transfer of such number of shares of Capital Stock that would cause the
violation of the applicable restriction in subsection (b)(i), and the Prohibited
Owner or transferee, as applicable, shall acquire no rights in such shares of
Capital Stock.

(c) Automatic Transfer to Trust.

(i) If, notwithstanding the other provisions contained in this Article V but
subject to Section 5.7 below, at any time from and after the Initial Date and prior
to the Restriction Termination Date, there is a purported Transfer or Non-Transfer
Event such that any Person would either Beneficially Own or Constructively Own
Capital Stock in excess of the Ownership Limit, then, except as otherwise provided
in Section 5.2(f) below, (x) the Prohibited Owner shall acquire no right or interest
(or, in the case of a Non-Transfer Event, the person holding record title to the
 shares of Capital Stock Beneficially Owned or Constructively Owned by such
Beneficial Owner or Constructive Owner, shall cease to own any right or interest) in
such number of shares of Capital Stock which would cause such Prohibited Owner to
Beneficially Own or Constructively Own Capital Stock in excess of the Ownership
Limit (rounded up to the nearest whole share), (y) such number of shares of Capital
Stock in excess of the Ownership Limit (rounded up to the nearest whole share) shall
be designated Stock-in-Trust and, in accordance with the provisions of Section
5.4(a) below, transferred automatically and by operation of law to the Trust to be
held in accordance with Section 5.4 hereof, and (z) such Prohibited Owner shall
submit such number of shares of Capital Stock to the Trust for registration in the
name of the Trustee. Any Prohibited Owner shall acquire no right or interest (or,
in the case of a Non-Transfer Event, the person holding title to the shares
Beneficially Owned or Constructively Owned by such Beneficial Owner or Constructive
Owner, shall cease to own any right or interest) in such number of shares which
would cause such person to own shares in excess of the Ownership Limit. Such
transfer to a Trust and the designation of shares as Stock-in-Trust shall be
effective as of the close of business on the business day prior to the date of the
Transfer or Non-Transfer Event, as the case may be.

(ii) If, notwithstanding the other provisions contained in this Article V but
subject to Section 5.7 below, at any time from and after the Initial Date and prior
to the Restriction Termination Date, there is a purported Transfer or Non-Transfer
Event that, if effective, would (i) result in the Capital Stock being beneficially
owned by fewer than 100 persons (determined without reference to any rules of
attribution), (ii) result in the Corporation being “closely held” within the meaning
of Section 856(h) of the Code, (iii) cause the Corporation to Constructively Own 10%
or more of the ownership interests in a tenant of the Corporation’s real property,
within the meaning of Section 856(d)(2)(B) of the Code, or (iv) cause the
Corporation to otherwise fail to qualify as a REIT, as the case may be, then (x) the
Prohibited Owner shall acquire no right or interest (or, in the case of a
Non-Transfer Event, the person holding record title to the Capital Stock with
respect to which such Non-Transfer Event occurred, shall cease to own any right or
interest) in such number of shares of Capital Stock, the ownership of which by such
Prohibited Owner would (A) result in the Capital Stock being beneficially owned by
fewer than 100 Persons (determined without reference to any rules of attribution),
(B) result in the Corporation being “closely held” within the meaning of Section
856(h) of the Code, (C) cause the Corporation to Constructively Own 10% or more of
the ownership interests in a tenant of the Corporation’s property, within the
meaning of Section 856(d)(2)(B) of the Code, or (D) would otherwise cause the
Corporation to fail to qualify as a REIT, as the case may be, (y)  such number of
 shares of Capital Stock (rounded up to the nearest whole share) shall be designated
Stock-in-Trust and, in accordance with the provisions of Section 5.4(a) below,
transferred automatically and by operation of law to the Trust to be held in
accordance with Section 5.4 hereof, and (z) the Prohibited Owner shall submit such
number of shares of Capital Stock to the Trust for registration in the name of the
Trustee.

(iii) If, notwithstanding the other provisions contained in this Article V but
subject to Section 5.7 below, at any time from and after the Initial Date, there is
a purported Transfer or other event that, if effective, would result in the Capital
Stock being owned by a Disqualified Organization as a record holder, then (x) the
Disqualified Organization shall acquire no right or interest (or, in the case of
such other event other than a Transfer, the person holding record title to the
Capital Stock with respect to which such other event has occurred, shall cease to
own any right or interest) in such number of shares of Capital Stock, the ownership
of which would result in the Capital Stock being owned by a Disqualified
Organization as a record holder, (y) such number of shares of Capital Stock (rounded
up to the nearest whole share) shall be designated Stock-in-Trust and, in accordance
with the provisions of Section 5.4(a) below, transferred automatically and by
operation of law to the Trust to be held in accordance with Section 5.4 hereof, and
(z) the Disqualified Organization (or, in the case of such other event other than a
Transfer, the person holding record title to the Capital Stock with respect to which
such other event has occurred) shall submit such number of shares of Capital Stock
to the Trust for registration in the name of the Trustee.

(d) Remedies for Breach. If the Board of Directors or an authorized
designee shall at any time determine that a purported Transfer of Capital Stock has
taken place in violation of Section 5.2(b) above or that a Person intends to acquire
or has attempted to acquire beneficial ownership (determined without reference to
any rules of attribution), Beneficial Ownership or Constructive Ownership of any
Capital Stock of the Corporation in violation of Section 5.2(b) above, the Board of
Directors or an authorized designee shall take such action as it deems advisable to
refuse to give effect to or to prevent such Transfer or acquisition, including, but
not limited to, refusing to give effect to such Transfer or acquisition on the books
of the Corporation or instituting proceedings to enjoin such Transfer or
acquisition; provided, however, that any Transfer, attempted
Transfer, acquisition or attempted acquisition in violation of Section 5.2(b)(i)
above shall automatically result in the transfer described in Section 5.2(c) above,
irrespective of any action (or non-action) by the Board of Directors, except as
provided in Section 5.2(f) below.

(e) Notice of Restricted Transfer.

(i) Any Person who acquires or attempts to Acquire Capital Stock in violation
of Section 5.2(b) above, and any Person who is a Prohibited Owner of Capital Stock
that is transferred to a Trust under Section 5.2(c) above, shall immediately give
written notice to the Corporation of such event or, in the case of such a proposed
or attempted transaction, give at least 15 days prior written notice, and shall
provide to the Corporation such other information as the Corporation may request in
order to determine the effect, if any, of such Transfer or attempted Transfer or
such Non-Transfer Event on the Corporation’s status as a REIT.

(ii) From and after the Initial Date and prior to the Restriction Termination
Date every Beneficial Owner or Constructive Owner of more than 5%, in the case that
the Corporation has 2,000 or more stockholders of record, or 1%, in the case that
the Corporation has more than 200 but fewer than 2,000 stockholders of record, or
such other percentage as may be provided from time to time in the pertinent income
tax regulations promulgated under the Code, of the number or value of the
outstanding shares of Capital Stock of the Corporation shall, within 30 days after
the end of each taxable year, give written notice to the Corporation stating the
name and address of such Beneficial Owner or Constructive Owner, the number of
 shares of Capital Stock Beneficially or Constructively Owned, and a description of
the manner in which such shares are held. Each such Beneficial Owner or
Constructive Owner shall provide to the Corporation such additional information that
the Corporation may reasonably request in order to determine the effect, if any, of
such Beneficial or Constructive Ownership on the Corporation’s status as a REIT and
to ensure compliance with the Ownership Limit; and

(iii) From and after the Initial Date and prior to the Restriction Termination
Date, each Person who is a Beneficial Owner or Constructive Owner of Capital Stock
of the Corporation and each Person (including the stockholder of record) who is
holding Capital Stock of the Corporation for a Beneficial Owner or Constructive
Owner shall provide to the Corporation such information as the Corporation may
reasonably request in order to determine the Corporation’s status as a REIT, to
comply with the requirements of any taxing authority or governmental agency or to
determine any such compliance and to ensure compliance with the Ownership Limit.

(f) Exemption. The Board of Directors may, but shall in no case be
required to, exempt a Person (the “Excepted Holder”) from the Ownership Limit and
establish an Excepted Holder Limit for such Excepted Holder, if the Board of
Directors concludes that no Person will, as the result of the ownership of Capital
Stock by the Excepted Holder, be considered to have Beneficial Ownership or
Constructive Ownership of an amount of Capital Stock that will violate the
restrictions contained in Sections 5.2(b)(i)(x), 5.2(b)(i)(y) or 5.2(b)(i)(z) above;
provided, that:

(i) the Board of Directors obtains such representations and undertakings from
each of the Excepted Holder and such other Persons as are reasonably necessary to
ascertain that no individual’s (as defined in Section 542(c)(2) of the Code)
Beneficial Ownership or Constructive Ownership of Capital Stock will violate the
Ownership Limit or the restrictions contained in Sections 5.2(b)(i)(x), 5.2(b)(i)(y)
or 5.2(b)(i)(z);

(ii) each of the Excepted Holder and such other Persons does not own and
represents that it will not own, actually or Constructively, an interest in a tenant
of the Corporation (or a tenant of any entity owned or controlled by the
Corporation) that would cause the Corporation to own, actually or Constructively,
more than a 9.9% interest (as set forth in Section 856(d)(2)(B) of the Code) in such
tenant and the Board of Directors obtains such representations and undertakings from
such Person as are reasonably necessary to ascertain this fact (for this purpose, a
tenant from whom the Corporation (or an entity owned or controlled by the
Corporation) derives (and is expected to continue to derive) a sufficiently small
amount of revenue such that, in the opinion of the Board of Directors, rent from
such tenant would not adversely affect the Corporation’s ability to qualify as a
REIT, shall not be treated as a tenant of the Corporation); and

(iii) the Excepted Holder agrees that any violation or attempted violation of
any conditions invoked by the Board of Directors will result in such transfer to the
Trust of Capital Stock pursuant to Section 5.2(c) hereof.

In making any determination to exempt a Person from the Ownership Limit, the Board
of Directors may, in its sole discretion, but shall be under no obligation to,
require a certified copy of a ruling from the Internal Revenue Service or an opinion
of counsel, both in form and substance satisfactory to the Board of Directors.

Notwithstanding the receipt of any such ruling or opinion, the Board of Directors
may impose such conditions or restrictions as it deems appropriate in connection
with granting such exception.

Unless and until a Person is exempted from the Ownership Limit by the Board of
Directors, the Ownership Limit shall apply to such Person, notwithstanding the fact
that if such Person were otherwise to Acquire Capital Stock in excess of the
Ownership Limit, such Acquisition would not adversely affect the Corporation’s
qualification as a REIT under the Code.

(g) Legend. For so long as the Board of Directors deems appropriate,
each certificate for shares of Capital Stock shall bear substantially the following
legend:

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON
BENEFICIAL AND CONSTRUCTIVE OWNERSHIP AND TRANSFER FOR THE PURPOSE OF THE
CORPORATION’S MAINTENANCE OF ITS STATUS AS A REAL ESTATE INVESTMENT TRUST (“REIT”)
UNDER THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”). SUBJECT TO
CERTAIN FURTHER RESTRICTIONS AND EXCEPT AS EXPRESSLY PROVIDED IN THE CHARTER, (I) NO
PERSON MAY BENEFICIALLY OR CONSTRUCTIVELY OWN SHARES OF ANY CLASS OR SERIES OF THE
CORPORATION’S CAPITAL STOCK IN EXCESS OF 9.8% (AS MAY BE ADJUSTED FROM TIME TO TIME
BY THE BOARD OF DIRECTORS) OF THE LESSER OF THE AGGREGATE NUMBER OR THE AGGREGATE
VALUE OF THE OUTSTANDING SHARES OF ANY CLASS OR SERIES OF CAPITAL STOCK OF THE
CORPORATION UNLESS SUCH PERSON IS AN EXCEPTED HOLDER (IN WHICH CASE THE EXCEPTED
HOLDER LIMIT SHALL BE APPLICABLE); (II) NO PERSON MAY BENEFICIALLY OR CONSTRUCTIVELY
OWN SHARES OF CAPITAL STOCK THAT WOULD RESULT IN THE CORPORATION BEING “CLOSELY
HELD” UNDER SECTION 856(hH) OF THE CODE OR OTHERWISE CAUSE THE CORPORATION TO FAIL
TO QUALIFY AS A REIT; AND (III) NO PERSON MAY TRANSFER SHARES OF CAPITAL STOCK IF
SUCH TRANSFER WOULD RESULT IN THE CAPITAL STOCK OF THE CORPORATION BEING OWNED BY
FEWER THAN 100 PERSONS; (IV) NO PERSON MAY TRANSFER SHARES OF CAPITAL STOCK IF SUCH
TRANSFER WOULD RESULT IN THE CORPORATION CONSTRUCTIVELY OWNING 10% OR MORE OF THE
OWNERSHIP INTERESTS IN A TENANT OF THE CORPORATION’S REAL PROPERTY, WITHIN THE
MEANING OF SECTION 856(D)(2)(B) OF THE CODE, OR WOULD OTHERWISE FAIL TO QUALIFY AS A
REIT; AND (V) NO DISQUALIFIED ORGANIZATION SHALL BE A RECORD HOLDER OF ANY SHARES OF
CAPITAL STOCK. ANY PERSON WHO BENEFICIALLY OR CONSTRUCTIVELY OWNS OR ATTEMPTS TO
BENEFICIALLY OR CONSTRUCTIVELY OWN SHARES OF CAPITAL STOCK WHICH CAUSES OR WILL
CAUSE A PERSON TO BENEFICIALLY OR CONSTRUCTIVELY OWN SHARES OF CAPITAL STOCK IN
EXCESS OR IN VIOLATION OF THE ABOVE LIMITATIONS MUST IMMEDIATELY NOTIFY THE
CORPORATION. IF ANY OF THE RESTRICTIONS ON TRANSFER OR OWNERSHIP ARE VIOLATED, THE
SHARES OF CAPITAL STOCK REPRESENTED HEREBY WILL BE AUTOMATICALLY TRANSFERRED TO A
TRUSTEE OF A TRUST FOR THE BENEFIT OF ONE OR MORE CHARITABLE BENEFICIARIES. IN
ADDITION, UPON THE OCCURRENCE OF CERTAIN EVENTS, ATTEMPTED TRANSFERS IN VIOLATION OF
THE RESTRICTIONS DESCRIBED ABOVE MAY BE VOID AB INITIO. ALL TERMS IN THIS LEGEND
HAVE THE MEANINGS DEFINED IN THE CHARTER, AS THE SAME MAY BE AMENDED FROM TIME TO
TIME, A COPY OF WHICH, INCLUDING THE RESTRICTIONS ON TRANSFER AND OWNERSHIP, WILL BE
FURNISHED TO EACH HOLDER OF CAPITAL STOCK OF THE CORPORATION ON REQUEST AND WITHOUT
CHARGE.”

(h) Modification of Ownership Limit. Subject to Section 7.3, the Board of
Directors may from time to time increase or decrease the Ownership Limit; provided, however,
that any decrease shall only be made prospectively as to subsequent holders of Capital
Stock, unless the decrease is as a result of a retroactive change in existing law, in which
case such decrease shall be effective immediately; provided, further, that no increase shall
be made if, after giving effect to such increase, the Corporation would otherwise fail to
qualify as a REIT; provided, further, that prior to the modification of the ownership
limitations, the Board of Directors may require such opinions of counsel, affidavits,
undertakings or agreements as it may deem necessary or advisable in order to determine or
ensure the Corporation’s status as a REIT.”

4

Exhibit B

Form of Tax Representation Letter

Greenlight Capital, L.P.

Greenlight Capital, L.L.C.

Greenlight Capital, Inc.

DME Advisors, L.P.

DME Advisors GP, L.L.C.

Greenlight Capital Qualified, L.P.

Greenlight Capital Offshore, Ltd.

David Einhorn

2 Grand Central Tower

140 East 45th Street

Floor 24

New York, New York 10017

March __, 2006

New Century Financial Corporation

18400 Von Karman Avenue, Suite 1000

Irvine, California 92612

Ladies and Gentlemen:

In connection with the grant by the Board of Directors or a committee thereof (the “Board”) of
New Century Financial Corporation (the “Company”) of an exemption (the “Exemption”) from the limit
on the ownership of the outstanding Common Stock (the “Common Stock”) of the Company (as set forth
in Article V of the Company’s Articles of Amendment and Restatement (the “Articles of
Incorporation”), the “Ownership Limit”) to Greenlight Capital, L.P.; Greenlight Capital, L.L.C.;
Greenlight Capital, Inc.; DME Advisors, L.P.; DME Advisors GP, L.L.C.; Greenlight Capital
Qualified, L.P.; Greenlight Capital Offshore, Ltd.; and David Einhorn (each a “Greenlight Party”
and collectively, the “Greenlight Parties”), together with their Controlled Affiliates (within the
meaning set forth in the Agreement by and among the Company and the Greenlight Parties, dated of
even date herewith (the “Settlement Agreement”)) in connection with the ownership of the Common
Stock of the Company by the Greenlight Parties, together with their Controlled Affiliates, in
excess of the Ownership Limit, each Greenlight Party hereby certifies to you that the following
statements are true, correct and complete:

1. The Greenlight Parties, each of whose address is 2 Grand Central Tower, 140 East
45th Street, Floor 24, New York, New York 10017, are funds (the “Greenlight Funds”) and
investment advisors that manage the Greenlight Funds and advise private and institutional clients.

2. None of David Einhorn, any individual investor in a Greenlight Fund or any individual who
maintains an account with any Greenlight Party or a Controlled Affiliate of any Greenlight Party
has a beneficial ownership or Constructive Ownership interest in Common Stock that exceeds the
Ownership Limit as of the date hereof. For purposes of this paragraph 2, “beneficial ownership”
shall mean ownership directly or indirectly under Section 542(a)(2) of the Internal Revenue Code of
1986, as amended (the “Code”), taking into account, for this purpose, constructive ownership
determined under Section 544 of the Code, as modified by Section 856(h)(1)(B) of the Code.

3. Each Greenlight Party understands that the Exemption is conditioned on the following:

(a) the Greenlight Parties, together with their Controlled Affiliates, collectively may not
Beneficially Own or Constructively Own shares of Common Stock in excess of the Greenlight Limit (as
defined in the Settlement Agreement) at any time, as per the terms of the Settlement Agreement;

(b) none of David Einhorn, any direct, indirect or constructive individual investor in a
Greenlight Fund or any individual who maintains an account with or has any direct, indirect or
constructive interest in any Greenlight Party or any Controlled Affiliate of any Greenlight Party
may at any time Beneficially Own or Constructively Own an interest in the Common Stock that would,
as a result of the ownership of the Common Stock by the Greenlight Parties together with their
Controlled Affiliates, exceed the Ownership Limit;

(c) none of David Einhorn, any direct, indirect or constructive individual investor in a
Greenlight Fund or any individual who maintains an account with or has any direct, indirect or
constructive interest in any Greenlight Party or any Controlled Affiliate of any Greenlight Party
may Beneficially Own or Constructively Own the outstanding Common Stock to the extent such
ownership would, as a result of the ownership of the Common Stock by the Greenlight Parties
together with their Controlled Affiliates, cause the Company to be closely held (within the meaning
of Section 856(h) of the Code) or otherwise fail to qualify as a real estate investment trust
(“REIT”); and

(d) no Greenlight Party or any Controlled Affiliate of any Greenlight Party, may own, actually
or Constructively, an interest in a tenant of the Company that would, as a result of the ownership
of the Common Stock by the Greenlight Parties together with their Controlled Affiliates, cause the
Company to own, actually or Constructively, more than a 9.9% interest (as set forth in Section
856(d)(2)(B) of the Code) in such tenant.

4. The Greenlight Parties understand that the Exemption will be automatically revoked to the
extent that any of the conditions listed in the preceding paragraph 3 or Sections 4.2(a), (b) or
(c) of the Settlement Agreement is breached or violated.

5. The Greenlight Parties understand and agree that any violation of any of the conditions
listed in paragraph 3 will result in a transfer to a trust of the shares of Common Stock
Beneficially Owned or Constructively Owned by the Greenlight Parties and their Controlled
Affiliates in excess of the Ownership Limit pursuant to Section 5.2(c) of the Articles of
Incorporation.

6. The Greenlight Parties understand that for purposes of this Exemption and this letter the
term “individual” shall mean (i) a natural person; (ii) an organization described in Section
501(c)(17) or 509(a) of the Code; (iii) a qualified trust described in Section 401(a) of the Code
if one or more disqualified persons (as defined in Section 4975(e)(2) of the Code, without regard
to subparagraphs (B) and (I) thereof) with respect to such qualified trust hold in the aggregate 5
percent or more in value of the interests in the Company and the Company has accumulated earnings
and profits attributable to any period for which it did not qualify as a real estate investment
trust; or (iv) a portion of a trust permanently set aside or to be used exclusively for the
purposes described in Section 642(c) of the Code or a corresponding provision of a prior income tax
law.

7. The Greenlight Parties understand that the Exemption is granted solely to the Greenlight
Parties, together with their Controlled Affiliates, and relates solely to the Common Stock. For
the avoidance of doubt, and subject to paragraph 3 and the Settlement Agreement, the assignment of
shares of Common Stock by a Greenlight Party to another Greenlight Party or a Controlled Affiliate
of any Greenlight Party shall not affect the Exemption.

8. The Greenlight Parties understand that in no event shall this Exemption permit any
individual’s Beneficial Ownership or Constructive Ownership of Capital Stock to exceed, at any
time, the Ownership Limit.

9. The Greenlight Parties understand that the Board retains the right to revoke or modify the
Exemption in order to prevent disqualification of the Company as a REIT under the Code, but the
Company would notify and consult with the Greenlight Parties as soon as possible prior to any such
revocation or modification.

10. The Greenlight Parties agree to cooperate with the Company if the Company reasonably
requests information from the Greenlight Parties or their Controlled Affiliates regarding the
number of shares of Common Stock or any preferred stock of the Company owned by the Greenlight
Parties or their Controlled Affiliates.

11. The Greenlight Parties understand that the Company will rely on the truth and accuracy of
the statements contained in this letter in granting the Exemption. In addition, the Greenlight
Parties authorize O’Melveny & Myers LLP (and/or other outside tax counsel to the Company) to rely
on the truth and accuracy of the statements contained in this letter in preparing its opinion
regarding the effect of the Exemption on the Company’s continued qualification as a REIT.

12. Written notices or inquiries to the Company should be directed to:

New Century Financial Corporation

18400 Von Karman Avenue, Suite 1000

Irvine, California 92612

Attn: Stergios Theologides, Esq.

Telephone: 800-967-7623

Fax: 949-440-7030

13. Written notices or inquiries to the Greenlight Parties should be directed to:

Greenlight Capital, Inc.

2 Grand Central Tower

140 East 45th Street, Floor 24

New York, New York 10017

Attn: Daniel Roitman

Telephone: 212-973-1900

Fax: 212-973-9219

14. All terms used but not defined herein shall have the meanings assigned to them in the
Settlement Agreement.

Very truly yours,

GREENLIGHT CAPITAL, L.P.

By: Greenlight Capital, L.L.C.

its general partner

By:

Name:

Its:

GREENLIGHT CAPITAL, L.L.C.

By:

Name:

Its:

5

GREENLIGHT CAPITAL, INC.

By:

Name:

Its:

DME ADVISORS, L.P.

By: DME Advisors GP, L.L.C.

its general partner

By:

Name:

Its:

DME ADVISORS GP, L.L.C.

By:

Name:

Its:

GREENLIGHT CAPITAL QUALIFIED, L.P.

By: Greenlight Capital, L.L.C.

its general partner

By:

Name:

Its:

GREENLIGHT CAPITAL OFFSHORE, LTD.

By: Greenlight Capital, Inc.

its investment advisor

By:

Name:

Its:

DAVID EINHORN

By:

6

Exhibit C

Form of Amendment to 2004 Incentive Performance Plan

NEW CENTURY FINANCIAL CORPORATION

2004 PERFORMANCE INCENTIVE PLAN

(Composite Plan Document Reflecting Proposed Amendment)

1. PURPOSE OF PLAN

The purpose of this New Century Financial Corporation 2004 Performance Incentive Plan (this
“Plan”) of New Century Financial Corporation, a Maryland corporation (the “Corporation”) is
to promote the success of the Corporation and to increase stockholder value by providing an
additional means through the grant of awards to attract, motivate, retain and reward
selected employees and other eligible persons.

2. ELIGIBILITY

The Administrator (as such term is defined in Section 3.1) may grant awards under this Plan
only to those persons that the Administrator determines to be Eligible Persons. An
“Eligible Person” is any person who is either: (a) an officer (whether or not a director) or
employee of the Corporation or one of its Subsidiaries or Affiliates; (b) a member of the
Board; or (c) an individual consultant or advisor who renders or has rendered bona fide
services (other than services in connection with the offering or sale of securities of the
Corporation or one of its Subsidiaries or Affiliates in a capital-raising transaction or as
a market maker or promoter of securities of the Corporation or one of its Subsidiaries or
Affiliates) to the Corporation or one of its Subsidiaries or Affiliates and who is selected
to participate in this Plan by the Administrator; provided, however, that a person who is
otherwise an Eligible Person under clause (c) above may participate in this Plan only if
such participation would not adversely affect the Corporation’s compliance with applicable
laws. An Eligible Person who has been granted an award (a “participant”) may, if otherwise
eligible, be granted additional awards if the Administrator shall so determine. As used
herein, “Subsidiary” means any corporation or other entity a majority of whose outstanding
voting stock or voting power is beneficially owned directly or indirectly by the
Corporation; “Affiliate” means any corporation or other entity a significant portion of the
equity of which is beneficially owned directly or indirectly by the Corporation (regardless
of whether such entity qualifies as a Subsidiary), as determined by the Administrator; and
“Board” means the Board of Directors of the Corporation.

3. PLAN ADMINISTRATION

	 	3.1	 	The Administrator. This Plan shall be administered by and all awards under
this Plan shall be authorized by the Administrator. The “Administrator” means the
Board or one or more committees appointed by the Board or another committee (within its
delegated authority) to administer all or certain aspects of this Plan. Any such
committee shall be comprised solely of one or more directors or such number of
directors as may be required under applicable law. A committee may delegate some or
all of its authority to another committee so constituted. The Board or a committee
comprised solely of directors may also delegate, to the extent permitted by applicable
law, to one or more officers of the Corporation, its powers under this Plan (a) to
designate the officers and employees of the Corporation and its Subsidiaries and
Affiliates who will receive grants of awards under this Plan, and (b) to determine the
number of shares subject to, and the other terms and conditions of, such awards. The
Board may delegate different levels of authority to different committees with
administrative and grant authority under this Plan. Unless otherwise provided in the
Bylaws of the Corporation or the applicable charter of any Administrator: (a) a
majority of the members of the acting Administrator shall constitute a quorum, and (b)
the vote of a majority of the members present assuming the presence of a quorum or the
unanimous written consent of the members of the Administrator shall constitute action
by the acting Administrator.

With respect to awards intended to satisfy the requirements for performance-based
compensation under Section 162(m) of the Internal Revenue Code of 1986, as amended
(the “Code”), this Plan shall be administered by a committee consisting solely of
two or more outside directors (as this requirement is applied under Section 162(m)
of the Code); provided, however, that the failure to satisfy such requirement shall
not affect the validity of the action of any committee otherwise duly authorized and
acting in the matter. Award grants, and transactions in or involving awards,
intended to be exempt under Rule 16b-3 under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), must be duly and timely authorized by the Board or a
committee consisting solely of two or more non-employee directors (as this
requirement is applied under Rule 16b-3 promulgated under the Exchange Act). To the
extent required by any applicable listing agency, this Plan shall be administered by
a committee composed entirely of independent directors (within the meaning of the
applicable listing agency).

	 	3.2	 	Powers of the Administrator. Subject to the express provisions of this Plan,
the Administrator is authorized and empowered to do all things necessary or desirable
in connection with the authorization of awards and the administration of this Plan (in
the case of a committee or delegation to one or more officers, within the authority
delegated to that committee or person(s)), including, without limitation, the authority
to:

	 	(a)	 	determine eligibility and, from among those persons determined
to be eligible, the particular Eligible Persons who will receive an award under
this Plan;

	 	(b)	 	grant awards to Eligible Persons, determine the price at which
securities will be offered or awarded and the number of securities to be
offered or awarded to any of such persons, determine the other specific terms
and conditions of such awards consistent with the express limits of this Plan,
establish the installments (if any) in which such awards shall become
exercisable or shall vest (which may include, without limitation, performance
and/or time-based schedules), or determine that no delayed exercisability or
vesting is required, establish any applicable performance targets, and
establish the events of termination or reversion of such awards;

	 	(c)	 	approve the forms of award agreements (which need not be
identical either as to type of award or among participants);

	 	(d)	 	construe and interpret this Plan and any agreements defining
the rights and obligations of the Corporation, its Subsidiaries and Affiliates,
and participants under this Plan, further define the terms used in this Plan,
and prescribe, amend and rescind rules and regulations relating to the
administration of this Plan or the awards granted under this Plan;

	 	(e)	 	cancel, modify, or waive the Corporation’s rights with respect
to, or modify, discontinue, suspend, or terminate any or all outstanding
awards, subject to any required consent under Section 8.6.5;

	 	(f)	 	accelerate or extend the vesting or exercisability or extend
the term of any or all such outstanding awards (in the case of options or stock
appreciation rights, within the maximum ten-year term of such awards) in such
circumstances as the Administrator may deem appropriate (including, without
limitation, in connection with a termination of employment or services or other
events of a personal nature) subject to any required consent under Section
8.6.5;

	 	(g)	 	adjust the number of shares of Common Stock subject to any
award, adjust the price of any or all outstanding awards or otherwise change
previously imposed terms and conditions, in such circumstances as the
Administrator may deem appropriate, in each case subject to Sections 4 and 8.6,
and provided that in no case (except due to an adjustment contemplated by
Section 7 or any repricing that may be approved by stockholders) shall such an
adjustment constitute a repricing (by amendment, cancellation and regrant,
exchange or other means) of the per share exercise or base price of any option
or stock appreciation right;

	 	(h)	 	determine the date of grant of an award, which may be a
designated date after but not before the date of the Administrator’s action
(unless otherwise designated by the Administrator, the date of grant of an
award shall be the date upon which the Administrator took the action granting
an award);

	 	(i)	 	determine whether, and the extent to which, adjustments are
required pursuant to Section 7 hereof and authorize the termination,
conversion, substitution or succession of awards upon the occurrence of an
event of the type described in Section 7;

	 	(j)	 	acquire or settle (subject to Sections 7 and 8.6) rights under
awards in cash, stock of equivalent value, or other consideration; and

	 	(k)	 	determine the fair market value of the Common Stock or awards
under this Plan from time to time and/or the manner in which such value will be
determined.

	 	3.3	 	Binding Determinations. Any action taken by, or inaction of, the Corporation,
any Subsidiary or Affiliate, or the Administrator relating or pursuant to this Plan and
within its authority hereunder or under applicable law shall be within the absolute
discretion of that entity or body and shall be conclusive and binding upon all persons.
Neither the Board nor any Board committee, nor any member thereof or person acting at
the direction thereof, shall be liable for any act, omission, interpretation,
construction or determination made in good faith in connection with this Plan (or any
award made under this Plan), and all such persons shall be entitled to indemnification
and reimbursement by the Corporation in respect of any claim, loss, damage or expense
(including, without limitation, attorneys’ fees) arising or resulting therefrom to the
fullest extent permitted by law and/or under any directors and officers liability
insurance coverage that may be in effect from time to time.

	 	3.4	 	Reliance on Experts. In making any determination or in taking or not taking
any action under this Plan, the Board or a committee, as the case may be, may obtain
and may rely upon the advice of experts, including employees and professional advisors
to the Corporation. No director, officer or agent of the Corporation, or any of its
Subsidiaries or Affiliates, shall be liable for any such action or determination taken
or made or omitted in good faith.

	 	3.5	 	Delegation. The Administrator may delegate ministerial, non-discretionary
functions to individuals who are officers or employees of the Corporation or any of its
Subsidiaries or Affiliates.

4. SHARES OF COMMON STOCK SUBJECT TO THE PLAN; SHARE LIMITS

	 	4.1	 	Shares Available. Subject to the provisions of Section 7.1, the capital stock
that may be delivered under this Plan shall be shares of the Corporation’s authorized
but unissued Common Stock and any shares of its Common Stock held as treasury shares.
For purposes of this Plan, “Common Stock” shall mean the common stock of the
Corporation and such other securities or property as may become the subject of awards
under this Plan, or may become subject to such awards, pursuant to an adjustment made
under Section 7.1.

	 	4.2	 	Share Limits. The maximum number of shares of Common Stock that may be
delivered pursuant to awards granted to Eligible Persons under this Plan (the “Share
Limit”) is equal to the sum of (a) 3,244,279 shares, plus (b) the number of any shares
subject to stock options granted under the Corporation’s 1995 Stock Option Plan (the
“1995 Plan”) and outstanding as of the date the Board approved this amended version of
the Plan (the “Board Approval Date”) which expire, or for any reason are
cancelled or terminated, after the Board Approval Date without being exercised;
provided that in no event shall the Share Limit exceed 6,108,450 shares (which is the
sum of the 3,244,279 shares set forth above, plus the maximum number of shares subject
to options previously granted and outstanding under the 1995 Plan as of the Board
Approval Date).(1) The following limits also apply with respect to awards
granted under this Plan:

	 	(a)	 	The maximum number of shares of Common Stock that may be
delivered pursuant to options qualified as incentive stock options granted
under this Plan is 450,000 shares, subject to the Plan limit set forth above.

	 	(b)	 	The maximum number of shares of Common Stock subject to those
options and stock appreciation rights that are granted during any calendar year
to any individual under this Plan is 750,000 shares.

	 	(c)	 	The maximum number of shares of Common Stock that may be
delivered pursuant to awards granted under this Plan, other than pursuant to
those described in the next sentence, is 1,400,000. This limit does not apply,
however, to (1) shares delivered in respect of compensation earned but
deferred, (2) except as expressly provided in Section 5.1.1 (which generally
requires that shares delivered in respect of “discounted” stock options be
charged against this limit), shares delivered in respect of stock option
grants, and (3) except as expressly provided in Section 5.1.2 (which generally
requires that shares delivered in respect of “discounted” stock appreciation
right grants be charged against this limit), shares delivered in respect of
stock appreciation right grants.

	 	(d)	 	Additional limits with respect to Performance-Based Awards are
set forth in Section 5.2.3.

Each of the foregoing numerical limits is subject to adjustment as contemplated by
Section 4.3, Section 7.1, and Section 8.10.

(1) As of the Board Approval Date, the aggregate share limit was 1,994,279 shares,
as previously adjusted and subject to future adjustment pursuant to clause (b) of the first
sentence of Section 4.2. Stockholders are being asked to approve an amendment to the Plan
that would increase the aggregate share limit by an additional 1,250,000 shares so that the
new aggregate share limit for the Plan would be 3,244,279 shares, subject to adjustment as
contemplated by clause (b) of the first sentence of Section 4.2.

	 	4.3	 	Awards Settled in Cash, Reissue of Awards and Shares. To the extent that an award
is settled in cash or a form other than shares of Common Stock, the shares that would
have been delivered had there been no such cash or other settlement shall not be
counted against the shares available for issuance under this Plan. In the event that
 shares of Common Stock are delivered in respect of a dividend equivalent right, only
the actual number of shares delivered with respect to the award shall be counted
against the share limits of this Plan. To the extent that shares of Common Stock are
delivered pursuant to the exercise of a stock appreciation right or stock option, the
number of underlying shares as to which the exercise related shall be counted against
the applicable share limits under Section 4.2, as opposed to only counting the shares
actually issued. (For purposes of clarity, if a stock appreciation right relates to
100,000 shares and is exercised at a time when the payment due to the participant is
15,000 shares, 100,000 shares shall be charged against the applicable share limits
under Section 4.2 with respect to such exercise.) Shares that are subject to or
underlie awards which expire or for any reason are cancelled or terminated, are
forfeited, fail to vest, or for any other reason are not paid or delivered under this
Plan shall again be available for subsequent awards under this Plan. Refer to Section
8.10 for application of the foregoing share limits with respect to assumed awards. The
foregoing adjustments to the share limits of this Plan are subject to any applicable
limitations under Section 162(m) of the Code with respect to awards intended as
performance-based compensation thereunder.

	 	4.4	 	Reservation of Shares; No Fractional Shares; Minimum Issue. The Corporation
shall at all times reserve a number of shares of Common Stock sufficient to cover the
Corporation’s obligations and contingent obligations to deliver shares with respect to
awards then outstanding under this Plan (exclusive of any dividend equivalent
obligations to the extent the Corporation has the right to settle such rights in cash).
No fractional shares shall be delivered under this Plan. The Administrator may pay
cash in lieu of any fractional shares in settlements of awards under this Plan. No
fewer than 100 shares may be purchased on exercise of any award (or, in the case of
stock appreciation or purchase rights, no fewer than 100 rights may be exercised at any
one time) unless the total number purchased or exercised is the total number at the
time available for purchase or exercise under the award.

5. AWARDS

	 	5.1	 	Type and Form of Awards. The Administrator shall determine the type or types
of award(s) to be made to each selected Eligible Person. Awards may be granted singly,
in combination or in tandem. Awards also may be made in combination or in tandem with,
in replacement of, as alternatives to, or as the payment form for grants or rights
under any other employee or compensation plan of the Corporation or one of its
Subsidiaries or Affiliates. The types of awards that may be granted under this Plan
are:

5.1.1 Stock Options. A stock option is the grant of a right to purchase a specified
number of shares of Common Stock during a specified period as determined by the
Administrator. An option may be intended as an incentive stock option within the
meaning of Section 422 of the Code (an “ISO”) or a nonqualified stock option (an
option not intended to be an ISO). The award agreement for an option will indicate
if the option is intended as an ISO, otherwise it will be deemed to be a
nonqualified stock option. The maximum term of each option (ISO or nonqualified)
shall be ten (10) years. The per share exercise price for each option shall be not
less than 100% of the fair market value of a share of Common Stock on the date of
grant of the option, except as follows: (a) in the case of a stock option granted
retroactively in tandem with or as a substitution for another award, the per share
exercise price may be no lower than the fair market value of a share of Common Stock
on the date such other award was granted (to the extent consistent with Sections 422
and 424 of the Code in the case of options intended as incentive stock options); and
(b) in any other circumstances, a nonqualified stock option may be granted with a
per share exercise price that is less than the fair market value of a share of
Common Stock on the date of grant, provided that any shares delivered in respect of
such option shall be charged against the limit of Section 4.2(c) (the limit on
full-value awards) as well as any other applicable limit under Section 4.2. When an
option is exercised, the exercise price for the shares to be purchased shall be paid
in full in cash or such other method permitted by the Administrator consistent with
Section 5.5.

5.1.2 Additional Rules Applicable to ISOs. To the extent that the aggregate fair
market value (determined at the time of grant of the applicable option) of stock
with respect to which ISOs first become exercisable by a participant in any calendar
year exceeds $100,000, taking into account both Common Stock subject to ISOs under
this Plan and stock subject to ISOs under all other plans of the Corporation or one
of its Subsidiaries (or any parent or predecessor corporation to the extent required
by and within the meaning of Section 422 of the Code and the regulations promulgated
thereunder), such options shall be treated as nonqualified stock options. In
reducing the number of options treated as ISOs to meet the $100,000 limit, the most
recently granted options shall be reduced first. To the extent a reduction of
simultaneously granted options is necessary to meet the $100,000 limit, the
Administrator may, in the manner and to the extent permitted by law, designate which
 shares of Common Stock are to be treated as shares acquired pursuant to the exercise
of an ISO. ISOs may only be granted to employees of the Corporation or one of its
subsidiaries (for this purpose, the term “subsidiary” is used as defined in Section
424(f) of the Code, which generally requires an unbroken chain of ownership of at
least 50% of the total combined voting power of all classes of stock of each
subsidiary in the chain beginning with the Corporation and ending with the
subsidiary in question). There shall be imposed in any award agreement relating to
ISOs such other terms and conditions as from time to time are required in order that
the option be an “incentive stock option” as that term is defined in Section 422 of
the Code. No ISO may be granted to any person who, at the time the option is
granted, owns (or is deemed to own under Section 424(d) of the Code) shares of
outstanding Common Stock possessing more than 10% of the total combined voting power
of all classes of stock of the Corporation, unless the exercise price of such option
is at least 110% of the fair market value of the stock subject to the option and
such option by its terms is not exercisable after the expiration of five years from
the date such option is granted.

5.1.3 Stock Appreciation Rights. A stock appreciation right or “SAR” is a right to
receive a payment, in cash and/or Common Stock, equal to the excess of the fair
market value of a specified number of shares of Common Stock on the date the SAR is
exercised over the fair market value of a share of Common Stock on the date the SAR
was granted (the “base price”) as set forth in the applicable award agreement except
as follows: (a) in the case of a SAR granted retroactively or in tandem with or as
substitution for another award, the base price may be no lower than the fair market
value of a share of Common Stock on the date such other award was granted; and (b)
in any other circumstances, a SAR may be granted with a base price that is less than
the fair market value of a share of Common Stock on the date of grant, provided that
any shares actually delivered in respect of such award shall be charged against the
limit of Section 4.2(c) (the limit on full-value awards) as well as any other
applicable limit under Section 4.2. The maximum term of an SAR shall be ten (10)
years.

5.1.4 Other Awards. The other types of awards that may be granted under this Plan
include: (a) stock bonuses, restricted stock, performance stock, stock units,
phantom stock, dividend equivalents, or similar rights to purchase or acquire
 shares, whether at a fixed or variable price or ratio related to the Common Stock,
upon the passage of time, the occurrence of one or more events, or the satisfaction
of performance criteria or other conditions, or any combination thereof; (b) any
similar securities with a value derived from the value of or related to the Common
Stock and/or returns thereon; or (c) cash awards granted consistent with Section 5.2
below.

	 	5.2	 	Section 162(m) Performance-Based Awards. Without limiting the generality of
the foregoing, any of the types of awards listed in Section 5.1.4 above may be, and
options and SARs granted with an exercise or base price not less than the fair market
value of a share of Common Stock at the date of grant (“Qualifying Options” and
“Qualifying SARS,” respectively) typically will be, granted as awards intended to
satisfy the requirements for “performance-based compensation” within the meaning of
Section 162(m) of the Code (“Performance-Based Awards”). The grant, vesting,
exercisability or payment of Performance-Based Awards may depend (or, in the case of
Qualifying Options or Qualifying SARs, may also depend) on the degree of achievement of
one or more performance goals relative to a pre-established targeted level or level
using one or more of the Business Criteria set forth below (on an absolute or relative
basis) for the Corporation on a consolidated basis or for one or more of the
Corporation’s subsidiaries, segments, divisions or business units, or any combination
of the foregoing. Any Qualifying Option or Qualifying SAR shall be subject only to the
requirements of Section 5.2.1 and 5.2.3 in order for such award to satisfy the
requirements for “performance-based compensation” under Section 162(m) of the Award.
Any other Performance-Based Award shall be subject to all of the following provisions
of this Section 5.2.

5.2.1 Class; Administrator. The eligible class of persons for Performance-Based
Awards shall be officers and employees of the Corporation and its Subsidiaries. The
Administrator approving Performance-Based Awards or making any certification
required pursuant to Section 5.2.4 must be constituted as provided in Section 3.1
for awards that are intended as performance-based compensation under Section 162(m)
of the Code.

5.2.2 Performance Goals. The specific performance goals for Performance-Based
Awards (other than Qualifying Options and Qualifying SARs) shall be, on an absolute
or relative basis, established based on one or more of the business criteria set
forth on Appendix A hereto (“Business Criteria”) as selected by the Administrator in
its sole discretion. To qualify awards as performance-based under Section 162(m),
the applicable Business Criterion (or Business Criteria, as the case may be) and
specific performance goal or goals (“targets”) must be established and approved by
the Administrator during the first 90 days of the performance period (and, in the
case of performance periods of less than one year, in no event more than 25% of the
performance period has elapsed) and while performance relating to such target(s)
remains substantially uncertain within the meaning of Section 162(m) of the Code.
Performance targets shall be adjusted to mitigate the unbudgeted impact of material,
unusual or nonrecurring gains and losses, accounting changes or other extraordinary
events not foreseen at the time the targets were set unless the Administrator
provides otherwise at the time of establishing the targets. The applicable
performance measurement period may not be less than three months nor more than 10
years.

5.2.3 Form of Payment; Maximum Performance-Based Award. Grants or awards under this
Section 5.2 may be paid in cash or shares of Common Stock or any combination
thereof. Grants of Qualifying Options and Qualifying SARs to any one participant in
any one calendar year shall be subject to the limit set forth in Section 4.2(b).
The maximum number of shares of Common Stock which may be delivered pursuant to
Performance-Based Awards (other than Qualifying Options and Qualifying SARs, and
other than cash awards covered by the following sentence) that are granted to any
one participant in any one calendar year shall not exceed 750,000 shares, either
individually or in the aggregate, subject to adjustment as provided in Section 7.1.
In addition, the aggregate amount of compensation to be paid to any one participant
in respect of all Performance-Based Awards payable only in cash and not related to
 shares of Common Stock and granted to that participant in any one calendar year
shall not exceed $10,000,000.00. Awards that are cancelled during the year shall be
counted against these limits to the extent permitted by Section 162(m) of the Code.

5.2.4 Certification of Payment. Before any Performance-Based Award under this
Section 5.2 (other than Qualifying Options and Qualifying SARs) is paid and to the
extent required to qualify the award as performance-based compensation within the
meaning of Section 162(m) of the Code, the Administrator must certify in writing
that the performance target(s) and any other material terms of the Performance-Based
Award were in fact timely satisfied.

5.2.5 Reservation of Discretion. The Administrator will have the discretion to
determine the restrictions or other limitations of the individual awards granted
under this Section 5.2 including the authority to reduce awards, payouts or vesting
or to pay no awards, in its sole discretion, if the Administrator preserves such
authority at the time of grant by language to this effect in its authorizing
resolutions or otherwise.

5.2.6 Expiration of Grant Authority. As required pursuant to Section 162(m) of the
Code and the regulations promulgated thereunder, the Administrator’s authority to
grant new awards that are intended to qualify as performance-based compensation
within the meaning of Section 162(m) of the Code (other than Qualifying Options and
Qualifying SARs) shall terminate upon the first meeting of the Corporation’s
stockholders that occurs in the fifth year following the year in which the
Corporation’s stockholders first approve this Plan.

	 	5.3	 	Award Agreements. Each award shall be evidenced by a written award agreement
in the form approved by the Administrator and executed on behalf of the Corporation
and, if required by the Administrator, executed by the recipient of the award. The
Administrator may authorize any officer of the Corporation (other than the particular
award recipient) to execute any or all award agreements on behalf of the Corporation.
The award agreement shall set forth the material terms and conditions of the award as
established by the Administrator consistent with the express limitations of this Plan.

	 	5.4	 	Deferrals and Settlements. Payment of awards may be in the form of cash,
Common Stock, other awards or combinations thereof as the Administrator shall
determine, and with such restrictions as it may impose. The Administrator may also
require or permit participants to elect to defer the issuance of shares or the
settlement of awards in cash under such rules and procedures as it may establish under
this Plan. The Administrator may also provide that deferred settlements include the
payment or crediting of interest or other earnings on the deferral amounts, or the
payment or crediting of dividend equivalents where the deferred amounts are denominated
in shares.

	 	5.5	 	Consideration for Common Stock or Awards. The purchase price for any award
granted under this Plan or the Common Stock to be delivered pursuant to an award, as
applicable, may be paid by means of any lawful consideration as determined by the
Administrator, including, without limitation, one or a combination of the following
methods:

	 	•	 	services rendered by the recipient of such award;

	 	•	 	cash, check payable to the order of the Corporation, or electronic funds
transfer;

	 	•	 	notice and third party payment in such manner as may be authorized by the
Administrator;

	 	•	 	the delivery of previously owned shares of Common Stock;

	 	•	 	by a reduction in the number of shares otherwise deliverable pursuant to the
award; or

	 	•	 	subject to such procedures as the Administrator may adopt, pursuant to a
“cashless exercise” with a third party who provides financing for the purposes
of (or who otherwise facilitates) the purchase or exercise of awards.

In no event shall any shares newly-issued by the Corporation be issued for less than
the minimum lawful consideration for such shares or for consideration other than
consideration permitted by applicable state law. In the event that the
Administrator allows a participant to exercise an award by delivering shares of
Common Stock previously owned by such participant and unless otherwise expressly
provided by the Administrator, any shares delivered which were initially acquired by
the participant from the Corporation (upon exercise of a stock option or otherwise)
must have been owned by the participant at least six months as of the date of
delivery. Shares of Common Stock used to satisfy the exercise price of an option
shall be valued at their fair market value on the date of exercise. The Corporation
will not be obligated to deliver any shares unless and until it receives full
payment of the exercise or purchase price therefor and any related withholding
obligations under Section 8.5 and any other conditions to exercise or purchase have
been satisfied. Unless otherwise expressly provided in the applicable award
agreement, the Administrator may at any time eliminate or limit a participant’s
ability to pay the purchase or exercise price of any award or shares by any method
other than cash payment to the Corporation.

	 	5.6	 	Definition of Fair Market Value. For purposes of this Plan, “fair market
value” shall mean, unless otherwise determined or provided by the Administrator in the
circumstances, the last price for a share of Common Stock as furnished by the National
Association of Securities Dealers, Inc. (the “NASD”) through the NASDAQ National Market
Reporting System (the “National Market”) for the date in question or, if no sales of
Common Stock were reported by the NASD on that date, the last price for a share of
Common Stock as furnished by the NASD through the National Market for the next
preceding day on which sales of Common Stock were reported by the NASD. The
Administrator may, however, provide with respect to one or more awards that the fair
market value shall equal the last price for a share of Common Stock as furnished by the
NASD through the National Market available on the date in question or the average of
the high and low trading prices of a share of Common Stock as furnished by the NASD
through the National Market for the date in question or the most recent trading day.
If the Common Stock is no longer listed or is no longer actively traded on the National
Market as of the applicable date, the fair market value of the Common Stock shall be
the value as reasonably determined by the Administrator for purposes of the award in
the circumstances. The Administrator also may adopt a different methodology for
determining fair market value with respect to one or more awards if a different
methodology is necessary or advisable to secure any intended favorable tax, legal or
other treatment for the particular award(s) (for example, and without limitation, the
Administrator may provide that fair market value for purposes of one or more awards
will be based on an average of closing prices (or the average of high and low daily
trading prices) for a specified period preceding the relevant date).

5.7 Transfer Restrictions.

5.7.1 Limitations on Exercise and Transfer. Unless otherwise expressly provided in
(or pursuant to) this Section 5.7, by applicable law and by the award agreement, as
the same may be amended, (a) all awards are non-transferable and shall not be
subject in any manner to sale, transfer, anticipation, alienation, assignment,
pledge, encumbrance or charge; (b) awards shall be exercised only by the
participant; and (c) amounts payable or shares issuable pursuant to any award shall
be delivered only to (or for the account of) the participant.

5.7.2 Exceptions. The Administrator may permit awards to be exercised by and paid
to, or otherwise transferred to, other persons or entities pursuant to such
conditions and procedures, including limitations on subsequent transfers, as the
Administrator may, in its sole discretion, establish in writing. Any permitted
transfer shall be subject to compliance with applicable federal and state securities
laws.

5.7.3 Further Exceptions to Limits on Transfer. The exercise and transfer
restrictions in Section 5.7.1 shall not apply to:

(a) transfers to the Corporation,

	 	(b)	 	the designation of a beneficiary to receive benefits in the
event of the participant’s death or, if the participant has died, transfers to
or exercise by the participant’s beneficiary, or, in the absence of a validly
designated beneficiary, transfers by will or the laws of descent and
distribution,

	 	(c)	 	subject to any applicable limitations on ISOs, transfers to a
family member (or former family member) pursuant to a domestic relations order
if approved or ratified by the Administrator,

	 	(d)	 	if the participant has suffered a disability, permitted
transfers or exercises on behalf of the participant by his or her legal
representative, or

	 	(e)	 	the authorization by the Administrator of “cashless exercise”
procedures with third parties who provide financing for the purpose of (or who
otherwise facilitate) the exercise of awards consistent with applicable laws
and the express authorization of the Administrator.

	 	5.8	 	International Awards. One or more awards may be granted to Eligible Persons
who provide services to the Corporation or one of its Subsidiaries or Affiliates
outside of the United States. Any awards granted to such persons may be granted
pursuant to the terms and conditions of any applicable sub-plans, if any, appended to
this Plan and approved by the Administrator.

6. EFFECT OF TERMINATION OF SERVICE ON AWARDS

	 	6.1	 	General. The Administrator shall establish the effect of a termination of
employment or service on the rights and benefits under each award under this Plan and
in so doing may make distinctions based upon, inter alia, the cause of termination and
type of award. If the participant is not an employee of the Corporation or one of its
Subsidiaries or Affiliates and provides other services to the Corporation or one of its
Subsidiaries or Affiliates, the Administrator shall be the sole judge for purposes of
this Plan (unless a contract or the award otherwise provides) of whether the
participant continues to render services to the Corporation or one of its Subsidiaries
or Affiliates and the date, if any, upon which such services shall be deemed to have
terminated.

	 	6.2	 	Events Not Deemed Terminations of Service. Unless the express policy of the
Corporation or one of its Subsidiaries or Affiliates, or the Administrator, otherwise
provides, the employment relationship shall not be considered terminated in the case of
(a) sick leave, (b) military leave, or (c) any other leave of absence authorized by the
Corporation or one of its Subsidiaries or Affiliates or the Administrator; provided
that unless reemployment upon the expiration of such leave is guaranteed by contract or
law, such leave is for a period of not more than 90 days. In the case of any employee
of the Corporation or one of its Subsidiaries or Affiliates on an approved leave of
absence, continued vesting of the award while on leave from the employ of the
Corporation or one of its Subsidiaries or Affiliates may be suspended until the
employee returns to service, unless the Administrator otherwise provides or applicable
law otherwise requires. In no event shall an award be exercised after the expiration
of the term set forth in the award agreement.

	 	6.3	 	Effect of Change of Subsidiary Status. For purposes of this Plan and any
award, if an entity ceases to be a Subsidiary or other Affiliate of the Corporation, as
determined by the Administrator, a termination of employment or service shall be deemed
to have occurred with respect to each Eligible Person in respect of such Subsidiary or
other Affiliate who does not continue as an Eligible Person in respect of the
Corporation or another of its Subsidiaries or Affiliates that continues as such, as
determined by the Administrator, after giving effect to the transaction or other event
giving rise to the change in status.

7. ADJUSTMENTS; ACCELERATION

	 	7.1	 	Adjustments. Upon or in contemplation of: any reclassification,
recapitalization, stock split (including a stock split in the form of a stock dividend)
or reverse stock split (“stock split”); any merger, combination, consolidation, or
other reorganization; any spin-off, split-up, or similar extraordinary dividend
distribution in respect of the Common Stock (whether in the form of securities or
property); any exchange of Common Stock or other securities of the Corporation, or any
similar, unusual or extraordinary corporate transaction in respect of the Common Stock;
or a sale of all or substantially all the business or assets of the Corporation as an
entirety; then the Administrator shall, in such manner, to such extent (if any) and at
such time as it deems appropriate and equitable in the circumstances:

	 	(a)	 	proportionately adjust any or all of (1) the number and type of
 shares of Common Stock (or other securities) that thereafter may be made the
subject of awards (including the specific share limits, maximums and numbers of
 shares set forth elsewhere in this Plan), (2) the number, amount and type of
 shares of Common Stock (or other securities or property) subject to any or all
outstanding awards, (3) the grant, purchase, or exercise price (which term
includes the base price of any SAR or similar right) of any or all outstanding
awards, (4) the securities, cash or other property deliverable upon exercise or
payment of any outstanding awards, or (5) (subject to Sections 7.8 and
8.8.3(a)) the performance standards applicable to any outstanding awards, or

	 	(b)	 	make provision for a cash payment or for the assumption,
substitution or exchange of any or all outstanding share-based awards or the
cash, securities or property deliverable to the holder of any or all
outstanding share-based awards, based upon the distribution or consideration
payable to holders of the Common Stock upon or in respect of such event.

The Administrator may adopt such valuation methodologies for outstanding awards as
it deems reasonable in the event of a cash or property settlement and, in the case
of options, SARs or similar rights, but without limitation on other methodologies,
may base such settlement solely upon the excess if any of the per share amount
payable upon or in respect of such event over the exercise or base price of the
award. With respect to any award of an ISO, the Administrator may make such an
adjustment that causes the option to cease to qualify as an ISO without the consent
of the affected participant.

In any of such events, the Administrator may take such action prior to such event to
the extent that the Administrator deems the action necessary to permit the
participant to realize the benefits intended to be conveyed with respect to the
underlying shares in the same manner as is or will be available to stockholders
generally. In the case of any stock split or reverse stock split, if no action is
taken by the Administrator, the proportionate adjustments contemplated by clause (a)
above shall nevertheless be made.

	 	7.2	 	Automatic Acceleration of Awards. Upon a dissolution of the Corporation or
other event described in Section 7.1 that the Corporation does not survive (or does not
survive as a public company in respect of its Common Stock), then each then-outstanding
option and SAR shall become fully vested, all shares of restricted stock then
outstanding shall fully vest free of restrictions, and each other award granted under
this Plan that is then outstanding shall become payable to the holder of such award;
provided that such acceleration provision shall not apply, unless otherwise expressly
provided by the Administrator, with respect to any award to the extent that the
Administrator has made a provision for the substitution, assumption, exchange or other
continuation or settlement of the award, or the award would otherwise continue in
accordance with its terms, in the circumstances.

	 	7.3	 	Possible Acceleration of Awards. Without limiting Section 7.2, in the event of
a Change in Control Event (as defined below), the Administrator may, in its discretion,
provide that any outstanding option or SAR shall become fully vested, that any share of
restricted stock then outstanding shall fully vest free of restrictions, and that any
other award granted under this Plan that is then outstanding shall be payable to the
holder of such award. The Administrator may take such action with respect to all
awards then outstanding or only with respect to certain specific awards identified by
the Administrator in the circumstances. For purposes of this Plan, “Change in Control
Event” means any of the following:

	 	(a)	 	The acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a “Person”)) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 25% or more of either (1) the then-outstanding shares of
common stock of the Corporation (the “Outstanding Company Common Stock”) or (2)
the combined voting power of the then-outstanding voting securities of the
Corporation entitled to vote generally in the election of directors (the
“Outstanding Company Voting Securities”); provided, however, that, for purposes
of this definition, the following acquisitions shall not constitute a Change in
Control Event; (A) any acquisition directly from the Corporation, (B) any
acquisition by the Corporation, (C) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Corporation or any
affiliate of the Corporation or a successor, or (D) any acquisition by any
entity pursuant to a transaction that complies with Sections (c)(1), (2) and
(3) below;

	 	(b)	 	Individuals who, as of the Effective Date, constitute the Board
(the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board; provided, however, that any individual becoming a director
subsequent to the Effective Date whose election, or nomination for election by
the Corporation’s stockholders, was approved by a vote of at least two-thirds
of the directors then comprising the Incumbent Board (including for these
purposes, the new members whose election or nomination was so approved, without
counting the member and his predecessor twice) shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board;

	 	(c)	 	Consummation of a reorganization, merger, statutory share
exchange or consolidation or similar corporate transaction involving the
Corporation or any of its Subsidiaries, a sale or other disposition of all or
substantially all of the assets of the Corporation, or the acquisition of
assets or stock of another entity by the Corporation or any of its Subsidiaries
(each, a “Business Combination”), in each case unless, following such Business
Combination, (1) all or substantially all of the individuals and entities that
were the beneficial owners of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of the
then-outstanding shares of common stock and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election
of directors, as the case may be, of the entity resulting from such Business
Combination (including, without limitation, an entity that, as a result of such
transaction, owns the Corporation or all or substantially all of the
Corporation’s assets directly or through one or more subsidiaries (a “Parent”))
in substantially the same proportions as their ownership immediately prior to
such Business Combination of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities, as the case may be, (2) no Person
(excluding any entity resulting from such Business Combination or a Parent or
any employee benefit plan (or related trust) of the Corporation or such entity
resulting from such Business Combination or Parent) beneficially owns, directly
or indirectly, 25% or more of, respectively, the then-outstanding shares of
common stock of the entity resulting from such Business Combination or the
combined voting power of the then-outstanding voting securities of such entity,
except to the extent that the ownership in excess of 25% existed prior to the
Business Combination, and (3) at least a majority of the members of the board
of directors or trustees of the entity resulting from such Business Combination
or a Parent were members of the Incumbent Board at the time of the execution of
the initial agreement or of the action of the Board providing for such Business
Combination; or

	 	(d)	 	Approval by the stockholders of the Corporation of a complete
liquidation or dissolution of the Corporation other than in the context of a
transaction that does not constitute a Change in Control Event under clause (c)
above.

	 	7.4	 	Early Termination of Awards. Any award that has been accelerated as required
or contemplated by Section 7.2 or 7.3 (or would have been so accelerated but for
Section 7.5, 7.6 or 7.7) shall terminate upon the related event referred to in Section
7.2 or 7.3, as applicable, subject to any provision that has been expressly made by the
Administrator, through a plan of reorganization or otherwise, for the survival,
substitution, assumption, exchange or other continuation or settlement of such award
and provided that, in the case of options and SARs that will not survive, be
substituted for, assumed, exchanged, or otherwise continued or settled in the
transaction, the holder of such award shall be given reasonable advance notice of the
impending termination and a reasonable opportunity to exercise his or her outstanding
options and SARs in accordance with their terms before the termination of such awards
(except that in no case shall more than ten days’ notice of accelerated vesting and the
impending termination be required and any acceleration may be made contingent upon the
actual occurrence of the event).

	 	7.5	 	Other Acceleration Rules. Any acceleration of awards pursuant to this Section
7 shall comply with applicable legal requirements and, if necessary to accomplish the
purposes of the acceleration or if the circumstances require, may be deemed by the
Administrator to occur a limited period of time not greater than 30 days before the
event. Without limiting the generality of the foregoing, the Administrator may deem an
acceleration to occur immediately prior to the applicable event and/or reinstate the
original terms of an award if an event giving rise to an acceleration does not occur.
The Administrator may override the provisions of Section 7.2, 7.3, 7.4 and/or 7.6 by
express provision in the award agreement and may accord any Eligible Person a right to
refuse any acceleration, whether pursuant to the award agreement or otherwise, in such
circumstances as the Administrator may approve. The portion of any ISO accelerated in
connection with a Change in Control Event or any other action permitted hereunder shall
remain exercisable as an ISO only to the extent the applicable $100,000 limitation on
ISOs is not exceeded. To the extent exceeded, the accelerated portion of the option
shall be exercisable as a nonqualified stock option under the Code.

	 	7.6	 	Possible Rescission of Acceleration. If the vesting of an award has been
accelerated expressly in anticipation of an event or upon stockholder approval of an
event and the Administrator later determines that the event will not occur, the
Administrator may rescind the effect of the acceleration as to any then outstanding and
unexercised or otherwise unvested awards.

	 	7.7	 	Golden Parachute Limitation. Notwithstanding anything else contained in this
Section 7 to the contrary, in no event shall an award be accelerated under this Plan to
an extent or in a manner which would not be fully deductible by the Corporation or one
of its Subsidiaries or Affiliates for federal income tax purposes because of Section
280G of the Code, nor shall any payment hereunder be accelerated to the extent any
portion of such accelerated payment would not be deductible by the Corporation or one
of its Subsidiaries or Affiliates because of Section 280G of the Code. If a
participant would be entitled to benefits or payments hereunder and under any other
plan or program that would constitute “parachute payments” as defined in Section 280G
of the Code, then the participant may by written notice to the Corporation designate
the order in which such parachute payments will be reduced or modified so that the
Corporation or one of its Subsidiaries or Affiliates is not denied federal income tax
deductions for any “parachute payments” because of Section 280G of the Code.
Notwithstanding the foregoing, if a participant is a party to an employment or other
agreement with the Corporation or one of its Subsidiaries or Affiliates, or is a
participant in a severance program sponsored by the Corporation or one of its
Subsidiaries or Affiliates, that contains express provisions regarding Section 280G
and/or Section 4999 of the Code (or any similar successor provision), the Section 280G
and/or Section 4999 provisions of such employment or other agreement or plan, as
applicable, shall control as to any awards held by that participant (for example, and
without limitation, a participant may be a party to an employment agreement with the
Corporation or one of its Subsidiaries or Affiliates that provides for a “gross-up” as
opposed to a “cut-back” in the event that the Section 280G thresholds are reached or
exceeded in connection with a change in control and, in such event, the Section 280G
and/or Section 4999 provisions of such employment agreement shall control as to any
awards held by that participant).

	 	7.8	 	Section 162(m) Limitations. To the extent limited by Section 162(m) of the
Code in the case of an award intended as performance-based compensation thereunder and
necessary to assure the deductibility of the compensation payable under the award, the
Administrator shall have no discretion under this Plan (a) to increase the amount of
compensation or the number of shares that would otherwise be due upon the attainment of
the applicable performance target or the exercise of the option or SAR, or (b) to waive
the achievement of any applicable performance goal as a condition to receiving a
benefit or right under the award.

8. OTHER PROVISIONS

	 	8.1	 	Compliance with Laws. This Plan, the granting and vesting of awards under this
Plan, the offer, issuance and delivery of shares of Common Stock, the acceptance of
promissory notes and/or the payment of money under this Plan or under awards are
subject to compliance with all applicable federal and state laws, rules and regulations
(including but not limited to state and federal securities law, federal margin
requirements) and to such approvals by any listing, regulatory or governmental
authority as may, in the opinion of counsel for the Corporation or one of its
Subsidiaries or Affiliates, be necessary or advisable in connection therewith. The
person acquiring any securities under this Plan will, if requested by the Corporation
or one of its Subsidiaries or Affiliates, provide such assurances and representations
to the Corporation or one of its Subsidiaries or Affiliates as the Administrator may
deem necessary or desirable to assure compliance with all applicable legal and
accounting requirements.

	 	8.2	 	Employment Status. No person shall have any claim or rights to be granted an
award (or additional awards, as the case may be) under this Plan, subject to any
express contractual rights (set forth in a document other than this Plan) to the
contrary.

	 	8.3	 	No Employment/Service Contract. Nothing contained in this Plan (or in any
other documents under this Plan or in any award) shall confer upon any Eligible Person
or other participant any right to continue in the employ or other service of the
Corporation or one of its Subsidiaries or Affiliates, constitute any contract or
agreement of employment or other service or affect an employee’s status as an employee
at will, nor shall interfere in any way with the right of the Corporation or one of its
Subsidiaries or Affiliates to change a person’s compensation or other benefits, or to
terminate his or her employment or other service, with or without cause. Nothing in
this Section 8.3, however, is intended to adversely affect any express independent
right of such person under a separate employment or service contract other than an
award agreement.

	 	8.4	 	Plan Not Funded. Awards payable under this Plan shall be payable in shares or
from the general assets of the Corporation, and no special or separate reserve, fund or
deposit shall be made to assure payment of such awards. No participant, beneficiary or
other person shall have any right, title or interest in any fund or in any specific
asset (including shares of Common Stock, except as expressly otherwise provided) of the
Corporation by reason of any award hereunder. Neither the provisions of this Plan (or
of any related documents), nor the creation or adoption of this Plan, nor any action
taken pursuant to the provisions of this Plan shall create, or be construed to create,
a trust of any kind or a fiduciary relationship between the Corporation or one of its
Subsidiaries or Affiliates and any participant, beneficiary or other person. To the
extent that a participant, beneficiary or other person acquires a right to receive
payment pursuant to any award hereunder, such right shall be no greater than the right
of any unsecured general creditor of the Corporation.

	 	8.5	 	Tax Withholding. Upon any exercise, vesting, or payment of any award or upon
the disposition of shares of Common Stock acquired pursuant to the exercise of an ISO
prior to satisfaction of the holding period requirements of Section 422 of the Code,
the Corporation or one of its Subsidiaries or Affiliates shall have the right at its
option to:

	 	(a)	 	require the participant (or the participant’s personal
representative or beneficiary, as the case may be) to pay or provide for
payment of at least the minimum amount of any taxes which the Corporation or
one of its Subsidiaries or Affiliates may be required to withhold with respect
to such award event or payment; or

	 	(b)	 	deduct from any amount otherwise payable in cash to the
participant (or the participant’s personal representative or beneficiary, as
the case may be) the minimum amount of any taxes which the Corporation or one
of its Subsidiaries or Affiliates may be required to withhold with respect to
such cash payment.

In any case where a tax is required to be withheld in connection with the delivery
of shares of Common Stock under this Plan, the Administrator may in its sole
discretion (subject to Section 8.1) grant (either at the time of the award or
thereafter) to the participant the right to elect, pursuant to such rules and
subject to such conditions as the Administrator may establish, to have the
Corporation reduce the number of shares to be delivered by (or otherwise reacquire)
the appropriate number of shares, valued in a consistent manner at their fair market
value or at the sales price in accordance with authorized procedures for cashless
exercises, necessary to satisfy the minimum applicable withholding obligation on
exercise, vesting or payment. In no event shall the shares withheld exceed the
minimum whole number of shares required for tax withholding under applicable law.
The Corporation may, with the Administrator’s approval, accept one or more
promissory notes from any Eligible Person in connection with taxes required to be
withheld upon the exercise, vesting or payment of any award under this Plan;
provided that any such note shall be subject to terms and conditions established by
the Administrator and the requirements of applicable law.

8.6 Effective Date, Termination and Suspension, Amendments.

8.6.1 Effective Date. This Plan is effective as of March 5, 2004, the date of its
approval by the Board (the “Effective Date”). This Plan shall be submitted for and
subject to stockholder approval no later than twelve months after the Effective
Date. Unless earlier terminated by the Board, this Plan shall terminate at the
close of business on the day before the tenth anniversary of the Effective Date.
After the termination of this Plan either upon such stated expiration date or its
earlier termination by the Board, no additional awards may be granted under this
Plan, but previously granted awards (and the authority of the Administrator with
respect thereto, including the authority to amend such awards) shall remain
outstanding in accordance with their applicable terms and conditions and the terms
and conditions of this Plan.

8.6.2 Board Authorization. The Board may, at any time, terminate or, from time to
time, amend, modify or suspend this Plan, in whole or in part. No awards may be
granted during any period that the Board suspends this Plan.

8.6.3 Stockholder Approval. To the extent then required by applicable law or any
applicable listing agency or required under Sections 162, 422 or 424 of the Code to
preserve the intended tax consequences of this Plan, or deemed necessary or
advisable by the Board, any amendment to this Plan shall be subject to stockholder
approval.

8.6.4 Amendments to Awards. Without limiting any other express authority of the
Administrator under (but subject to) the express limits of this Plan, the
Administrator by agreement or resolution may waive conditions of or limitations on
awards to participants that the Administrator in the prior exercise of its
discretion has imposed, without the consent of a participant, and (subject to the
requirements of Sections 3.2 and 8.6.5) may make other changes to the terms and
conditions of awards. Any amendment or other action that would constitute a
repricing of an award is subject to the limitations set forth in Section 3.2(g).

8.6.5 Limitations on Amendments to Plan and Awards. No amendment, suspension or
termination of this Plan or change of or affecting any outstanding award shall,
without written consent of the participant, affect in any manner materially adverse
to the participant any rights or benefits of the participant or obligations of the
Corporation under any award granted under this Plan prior to the effective date of
such change. Changes, settlements and other actions contemplated by Section 7 shall
not be deemed to constitute changes or amendments for purposes of this Section 8.6.

	 	8.7	 	Privileges of Stock Ownership. Except as otherwise expressly authorized by the
Administrator or this Plan, a participant shall not be entitled to any privilege of
stock ownership as to any shares of Common Stock not actually delivered to and held of
record by the participant. No adjustment will be made for dividends or other rights as
a stockholder for which a record date is prior to such date of delivery.

8.8 Governing Law; Construction; Severability.

8.8.1 Choice of Law. This Plan, the awards, all documents evidencing awards and all
other related documents shall be governed by, and construed in accordance with the
laws of the State of Maryland.

8.8.2 Severability. If a court of competent jurisdiction holds any provision
invalid and unenforceable, the remaining provisions of this Plan shall continue in
effect.

8.8.3 Plan Construction.

	 	(a)	 	Rule 16b-3. It is the intent of the
Corporation that the awards and transactions permitted by awards be
interpreted in a manner that, in the case of participants who are or
may be subject to Section 16 of the Exchange Act, qualify, to the
maximum extent compatible with the express terms of the award, for
exemption from matching liability under Rule 16b-3 promulgated under
the Exchange Act. Notwithstanding the foregoing, the Corporation shall
have no liability to any participant for Section 16 consequences of
awards or events under awards if an award or event does not so qualify.

	 	(b)	 	Section 162(m). Awards under Section
5.1.4 to persons described in Section 5.2 that are either granted or
become vested, exercisable or payable based on attainment of one or
more performance goals related to the Business Criteria, as well as
Qualifying Options and Qualifying SARs granted to persons described in
Section 5.2, that are approved by a committee composed solely of two or
more outside directors (as this requirement is applied under Section
162(m) of the Code) shall be deemed to be intended as performance-based
compensation within the meaning of Section 162(m) of the Code unless
such committee provides otherwise at the time of grant of the award.
It is the further intent of the Corporation that (to the extent the
Corporation or one of its Subsidiaries or awards under this Plan may be
or become subject to limitations on deductibility under Section 162(m)
of the Code) any such awards and any other Performance-Based Awards
under Section 5.2 that are granted to or held by a person subject to
Section 162(m) will qualify as performance-based compensation or
otherwise be exempt from deductibility limitations under Section
162(m).

	 	8.9	 	Captions. Captions and headings are given to the sections and subsections of
this Plan solely as a convenience to facilitate reference. Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of this
Plan or any provision thereof.

	 	8.10	 	Stock-Based Awards in Substitution for Stock Options or Awards Granted by Other
Corporation. Awards may be granted to Eligible Persons in substitution for or in
connection with an assumption of employee stock options, SARs, restricted stock or
other stock-based awards granted by other entities to persons who are or who will
become Eligible Persons in respect of the Corporation or one of its Subsidiaries or
Affiliates, in connection with a distribution, merger or other reorganization by or
with the granting entity or an affiliated entity, or the acquisition by the Corporation
or one of its Subsidiaries or Affiliates, directly or indirectly, of all or a
substantial part of the stock or assets of the employing entity. The awards so granted
need not comply with other specific terms of this Plan, provided the awards reflect
only adjustments giving effect to the assumption or substitution consistent with the
conversion applicable to the Common Stock in the transaction and any change in the
issuer of the security. Any shares that are delivered and any awards that are granted
by, or become obligations of, the Corporation, as a result of the assumption by the
Corporation of, or in substitution for, outstanding awards previously granted by an
acquired company (or previously granted by a predecessor employer (or direct or
indirect parent thereof) in the case of persons that become employed by the Corporation
or one of its Subsidiaries or Affiliates in connection with a business or asset
acquisition or similar transaction) shall not be counted against the Share Limit or
other limits on the number of shares available for issuance under this Plan.

	 	8.11	 	Non-Exclusivity of Plan. Nothing in this Plan shall limit or be deemed to
limit the authority of the Board or the Administrator to grant awards or authorize any
other compensation, with or without reference to the Common Stock, under any other plan
or authority.

	 	8.12	 	No Corporate Action Restriction. The existence of this Plan, the award
agreements and the awards granted hereunder shall not limit, affect or restrict in any
way the right or power of the Board or the stockholders of the Corporation to make or
authorize: (a) any adjustment, recapitalization, reorganization or other change in the
capital structure or business of the Corporation or any subsidiary or affiliate, (b)
any merger, amalgamation, consolidation or change in the ownership of the Corporation
or any subsidiary or affiliate, (c) any issue of bonds, debentures, capital, preferred
or prior preference stock ahead of or affecting the capital stock (or the rights
thereof) of the Corporation or any subsidiary or affiliate, (d) any dissolution or
liquidation of the Corporation or any subsidiary or affiliate, (e) any sale or transfer
of all or any part of the assets or business of the Corporation or any subsidiary or
affiliate, or (f) any other corporate act or proceeding by the Corporation or any
subsidiary or affiliate. No participant, beneficiary or any other person shall have
any claim under any award or award agreement against any member of the Board or the
Administrator, or the Corporation or any employees, officers or agents of the
Corporation or any subsidiary or affiliate, as a result of any such action.

	 	8.13	 	Other Company Benefit and Compensation Programs. Payments and other benefits
received by a participant under an award made pursuant to this Plan shall not be deemed
a part of a participant’s compensation for purposes of the determination of benefits
under any other employee welfare or benefit plans or arrangements, if any, provided by
the Corporation or one of its Subsidiaries or Affiliates, except where the
Administrator expressly otherwise provides or authorizes in writing. Awards under this
Plan may be made in addition to, in combination with, as alternatives to or in payment
of grants, awards or commitments under any other plans or arrangements of the
Corporation or one of its Subsidiaries or Affiliates.

7

APPENDIX A

BUSINESS CRITERIA

The Business Criteria referred to in Section 5.2.2 of the Plan shall mean any one or a
combination of the following terms. These terms are used as applied under generally accepted
accounting principles or in the Corporation’s financial reporting. The Business Criteria
applicable to an award may be established with respect to the Corporation (on either a stand-alone
or consolidated basis) or any applicable Subsidiary, division, segment, or unit.

Before-Tax Net Income. “Before-Tax Net Income” means net income from operations before
reduction for income taxes with the following adjustments: (a) benefits payable under the company’s
employee incentive compensation plans for the applicable performance period to employees of that
entity (other than employees who participate in this Plan for that performance period) shall be
deducted, but any cash benefits payable under this Plan shall not be deducted unless otherwise
expressly provided by the Administrator at the time of grant of the Award; (b) any income or loss
derived from discontinued operations shall be excluded (unless the Administrator expressly provides
in the applicable award agreement that such income or loss shall not be excluded with respect to
the related award); and (c) any income or loss derived from new or acquired operations shall be
excluded (unless the Administrator expressly provides in the applicable award agreement that such
income or loss shall not be excluded with respect to the related award).

Cash Flow. “Cash Flow” means cash and cash equivalents derived from either: (a) net cash flow
from operations, or (b) net cash flow from operations, financings and investing activities, as
determined by the Administrator at the time of grant and set forth in the applicable award
agreement.

Corporate Overhead Costs. “Corporate Overhead Costs” means an entity’s allocable share of the
company’s corporate overhead shared services including human resources, accounting, legal,
information technology and compliance services.

Delinquency Rates. “Delinquency Rates” means the percentage of borrowers whose loans are
serviced by the company who have not made a payment on or before its due date.

Earnings Per Share. “Earnings Per Share” means earnings per share of Common Stock on a fully
diluted basis (giving effect to the dilutive effects of stock options, restricted stock, and other
dilutive instruments) determined by dividing: (a) net earnings, by (b) the weighted average number
of common shares and common share equivalents outstanding.

Economic Profit. “Economic Profit” means the company’s net operating profit after tax less a
capital charge. The capital charge is calculated by multiplying the company’s operating capital by
the company’s weighted average cost of capital.

Employees. “Employees” means the entity’s aggregate number of employees, or the number
performing a specific function (such as loan officers, account executives, telemarketers, etc.).

Gain on Sale of Loans. “Gain on Sale of Loans” means the total gain recognized on loans sold
through whole loan transactions or through securitizations, net of premiums paid to acquire such
loans and net of expenses associated with the sale of such loans.

Liquidity Management. “Liquidity Management” means the company’s cash and borrowing capacity
under its credit commitments.

Loan Losses. “Loan Losses” means sales of loans for less than the loan amount or sales of
REOs for less than the loan amount at the time of foreclosure plus expenses and other advances in
maintaining and selling the REO.

Loan Production Volume. “Loan Production Volume” means the aggregate volume of loans funded
during any given period or the volume of a type or category of loans funded during any given
period, as specified by the Administrator in the award agreement.

Loan Quality. “Loan Quality” means a mathematical score based on the number of loans
originated in accordance with the company’s underwriting policies and procedures, loans sold,
either individually, through bulk sales transactions, or through securitizations, at a premium
price as a percentage of total loans sold, and various other measures.

Operating Margin. “Operating Margin” means, on a percentage basis, the net execution of all
whole loan sales during the performance period, plus net interest earned on unsold inventory, less
loan acquisition costs.

Origination Expenses. “Origination Expenses” means the aggregate points and fees paid to
mortgage brokers or correspondents, commission expenses and other direct origination-related
expenses paid by an entity in connection with loan originations over a specified period.

Origination Revenues. “Origination Revenues” means the aggregate points and fees and other
revenues received by an Entity from borrowers in connection with loan originations over a specified
period.

Residual Performance. “Residual Performance” means the performance of residual interests in
the company’s loan securitization transactions as compared with the projected performance used by
the company in recording the book value of the residual interests.

Return on Assets. “Return on Assets” means the company’s consolidated net income (less any
preferred dividends), divided by the company’s average assets.

Return on Capital Invested. “Return on Capital Invested” means the company’s consolidated net
income (less any preferred dividends), divided by the company’s invested capital.

Return on Equity. “Return on Equity” means consolidated net income of the company (less any
preferred dividends), divided by the average consolidated common stockholders equity.

Return on Sales/Revenue. “Return on Sales/Revenue” means the company’s consolidated net
income (less any preferred dividends), divided by the company’s total sales or revenue, as
applicable.

Stock Price. “Stock Price” means the stock price or market value of the Common Stock of the
Corporation.

Total Stockholders’ Equity. “Total Stockholders’ Equity” means the company’s total
stockholders’ equity as shown on the company’s audited financial statements as of the first day of
a performance period, increased for equity issued during the performance period and decreased for
equity reacquired during the performance period in the manner described in the next two sentences.
The amount of any such increase shall be equal to the amount of equity issues during the
performance period multiplied by a fraction, the numerator of which is the number of days remaining
in the performance period and the denominator of which is the total number of days is 365. The
amount of any such decrease shall be equal to the amount of equity reacquired by the company during
the performance period multiplied by a fraction, the numerator of which is the number of days
remaining in the performance period and the denominator of which is the total number of days is
365.

Total Stockholder Return. “Total Stockholder Return” means, with respect to the Corporation
or other entities (if measured on a relative basis): (a) the change in the market price of its
common stock (as quoted on the principal market on which it is traded as of the beginning and
ending of the period) plus dividends and other distributions paid, divided by (b) the beginning
quoted market price for the common stock, all of which is adjusted for any changes in equity
structure, including but not limited to stock splits and stock dividends.

8

Exhibit D

Form of Press Release

FOR ADDITIONAL INFORMATION CONTACT:

New Century Financial Corporation

18400 Von Karman, Suite 1000

Irvine, CA 92612

Carrie Marrelli, VP, Investor Relations

(949) 224-5745

Erin Freeman, VP, Corporate Communications

(949) 862-7624

Hugh Burns/Dan Gagnier, Citigate Sard

Verbinnen (212) 687-8080

Greenlight Capital, Inc.

2 Grand Central Tower

140 East 45 Street, Floor 24

New York, NY 10017

Daniel Roitman, COO

(212) 973-1900

Steve Bruce, The Abernathy MacGregor Group

(212) 371-5999

9

NEW CENTURY FINANCIAL CORPORATION AND GREENLIGHT CAPITAL REACH

AGREEMENT TO END PROXY CONTEST

David Einhorn To Join Board of Directors

Irvine, Calif. and New York, NY, March [X], 2006, New Century Financial Corporation (NYSE: NEW), a
real estate investment trust (REIT) and parent company of one of the nation’s premier mortgage
finance companies, and Greenlight Capital, Inc. (“Greenlight”) today announced that they have
reached an agreement under which Greenlight will cease its efforts to run a slate of three director
nominees for election to the New Century Board of Directors.

Under the terms of the agreement, New Century will increase the size of its Board to eleven members
and David Einhorn, President of Greenlight, will be appointed to serve as a Class III director
effective March 31, 2006. Mr. Einhorn will stand for reelection at the company’s 2006 Annual
Meeting of Stockholders, scheduled for May 10, 2006. Greenlight has also agreed that it will not
initiate a proxy contest against the company while Mr. Einhorn is serving as a director and that it
will vote its shares in favor of the three incumbent directors who are up for reelection at the
2006 Annual Meeting of Stockholders.

In addition, New Century will provide Greenlight an exception to its current 9.8 percent
shareholding limit, permitting Greenlight to increase its ownership to as much as 19.6 percent of
the company’s outstanding common stock.

“Since Greenlight notified the company of its intention to nominate a slate of directors, the
parties have engaged in constructive dialogue across a number of issues. We believe this dialogue
has given us a framework under which we can work together to continue building value for all New
Century stockholders. We look forward to Mr. Einhorn’s active participation in his new capacity as
a member of our Board,” said Fredric J. Forster, Lead Independent Director of New Century.

“Our discussions with the company over the last few weeks have been very productive. New
Century is a unique and valuable franchise. I look forward to sharing my perspective as the Board
oversees effective allocation of the company’s capital to the most attractive risk-adjusted
opportunities, and to working with the other Board members to enhance per share value for all
stockholders,” said Mr. Einhorn.

About New Century Financial Corporation

Founded in 1995 and headquartered in Irvine, California, New Century Financial Corporation is a
real estate investment trust and one of the nation’s premier mortgage finance companies, providing
mortgage products to borrowers nationwide through its operating subsidiaries, New Century Mortgage
Corporation and Home123 Corporation. The company offers a broad range of mortgage products designed
to meet the needs of all borrowers. New Century is committed to serving the communities in which it
operates with fair and responsible lending practices. To find out more about New Century, please
visit www.ncen.com.

As of December 31, 2005, New Century originated loans through 222 sales offices operating in 35
states and 35 regional processing centers operating in 18 states and employed approximately 7,200
Associates.

About Greenlight Capital, Inc.

Founded in 1996 and headquartered in New York, Greenlight Capital is a value-oriented investment
management firm established to invest principally in publicly traded U.S. corporate debt and equity
securities. Greenlight’s investment philosophy is to combine the analytical discipline of
determining fair value with a practical understanding of markets. Greenlight believes that an
investment approach that emphasizes intrinsic value will achieve consistent absolute investment
returns and safeguard capital regardless of market conditions. Greenlight manages through its
affiliates over $3 billion of assets in a variety of pooled investment vehicles.

Safe Harbor Regarding Forward-Looking Statements

Certain statements contained in this press release may be deemed to be forward-looking statements
under federal securities laws and the company intends that such forward-looking statements be
subject to the safe-harbor created thereby. Such forward-looking statements include, but are not
limited to: (i) the company’s belief that its dialogue with Greenlight has given it a framework
under which it can continue building value for all of the company’s stockholders and (ii) the goal
of effectively allocating the company’s capital to the most attractive risk-adjusted opportunities
and enhancing per share value for all stockholders. The company cautions that these statements are
qualified by important factors that could cause actual results to differ materially from those
reflected by the forward-looking statements. Such factors include, but are not limited to: (i) the
condition of the U.S. economy and financial system; (ii) the interest rate environment; (iii) the
effect of increasing competition in the company’s sector; (iv) the condition of the markets for
whole loans and mortgage-backed securities; (v) the stability of residential property values; (vi)
the company’s ability to comply with the requirements applicable to REITs; (vii) the impact of more
vigorous and aggressive enforcement actions by federal or state regulators; (viii) the company’s
ability to grow its loan portfolio; (ix) the company’s ability to continue to maintain low loan
acquisition costs; (x) the potential effect of new state or federal laws and regulations; (xi) the
company’s ability to maintain adequate credit facilities to finance its business; (xii) the outcome
of litigation or regulatory actions pending against the company; and (xiii) the assumptions
underlying the company’s risk management practices. Additional information on these and other
factors is contained in the company’s Annual Report on Form 10-K for the year ended December 31,
2004 and the other periodic filings of the company with the Securities and Exchange Commission.
The company assumes no, and hereby disclaims any, obligation to update the forward-looking
statements contained in this press release.

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]