Document:

Legal Charge Over Shares Agreement - Secunda Global Marine

  
 Exhibit 10.9

  
 CHARGE OVER SHARES 
  
 THIS CHARGE is dated the 26th day of August, 2004 (“Charge”) and
made between (1) Secunda Global Marine Incorporated a Company registered and incorporated in accordance with the Laws of Barbados and whose registered office is situate at Suite 102 Warrens Court, Warrens, in the parish of Saint Michael in
the Island of Barbados (hereinafter called “the Chargor”) and (2) Wilmington Trust Company of (hereinafter called “the Collateral Agent”) not in its individual capacity but solely as Collateral Agent under a Collateral
Agency Agreement, dated the 26th day of August, 2004, (“the Collateral Agency Agreement”) and made between Secunda International Limited (hereinafter called “the Borrower”) and certain of its subsidiaries, Fortis Capital Corp.
(hereinafter called “the Agent”) in its capacity as Agent for the benefit of the Lenders (defined below) (hereinafter called “the Lenders”) and Wells Fargo Bank, National Association (hereinafter called “the Trustee”)
in its capacity as Trustee for the benefit of the Noteholders and the Collateral Agent. 
  
 WHEREAS: 
  
 Pursuant to
the terms of a Credit Agreement dated the 26th day of August 2004 and made between Fortis Capital Corp., as agent, arranger and book runner (the “Agent”), Secunda International Limited (the “Borrower”), and certain of its
affiliates and the Lenders party thereto (“Lenders”) (hereinafter called “the Credit Agreement”) each of the Lenders agreed to make the Facility (as defined in the Credit Agreement) available to the Borrower in accordance with
and subject to the terms and conditions of the Credit Agreement. As a condition to providing such Facility, each of the Lenders has requested that the Chargor enter into this Legal Charge Over Shares and charge all of its issued and outstanding
shares to the Collateral Agent, on behalf of the Agent and the Lenders. 
  
 AND WHEREAS pursuant to the terms of an Indenture, dated the 26th day of August 2004 and made between Secunda International Limited, certain of its 

  

 
Affiliates and the Trustee (hereinafter called “the Indenture”), the Borrower issued the Notes. 
  
 AND WHEREAS as a condition to the initial purchasers purchasing such Notes,
each of the initial purchasers have requested that the Chargor enter into this Legal Charge Over Shares and charge its shares to the Collateral Agent, on behalf of the Trustee and the Noteholders. 
  
 NOW THIS DEED WITNESSETH AS FOLLOWS: 
  
 In consideration of the mutual covenants and agreements herein contained and
of other valuable consideration, receipt of which is hereby acknowledged, the Chargor and the Collateral Agent hereby agree as follows: 
  
 DEFINED TERMS 
  
 1. Capitalized terms used herein, but not otherwise defined herein, shall have the meanings assigned to such terms in the Collateral Agency Agreement. 
  
 “Share Capital” means 25 Common Shares and 1180 Preferred Shares in the capital of the Chargor, together with any and all shares,
interests, participations, or other equivalent of share capital or corporate stock. 
  
 “Transaction Document” when used in the singular and “Transaction Documents” when used in the plural means any and all of the Credit Agreement, the Revolving Loan Notes, the Collateral Agency Agreement, the Subsidiary
Guarantee Agreements, the Assignment of Earnings and Insurances, the Assignments of Contract, the Hedging Agreements (if any), the Mortgages, the Deed of Covenants, the Pledge Agreement, the Control Agreements, the Indenture, the Notes, the Note
Guarantees and each other Security Document, each as the same may from time to time be amended, restated, modified, supplemented or renewed. 
  
 “Charged Collateral” means the Share Capital hereby charged by the Chargor to the Collateral Agent and any after acquired share capital or other property
charged to the Collateral Agent pursuant to the terms hereof. 
  

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 “Vessel Owner” means any Subsidiary of the Borrower that (i) owns one or more Vessels or other Vessel Assets or
(ii) charters or arranges for the charter of one or more of the Vessels. 
  
 CHARGING CLAUSE 
  
 2. The Chargor as beneficial owner
hereby charges to the Collateral Agent as a continuing security for the payment of all Secured Obligations by way of a first fixed charge: 
  
 (a) all of its issued and outstanding shares and the certificates and instruments representing the shares, and all dividends, cash, instruments and other property from
time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Share Capital; and 
  
 (b) all additional Share Capital of the Chargor from time to time acquired by Chargor in any manner, and the certificates or instruments representing such additional
shares, and all dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares, but so that the Collateral Agent shall not in any
circumstances incur any liability whatsoever in respect of any calls installments or otherwise in connection with the Shares. The Share Capital and all other property described in Section 2 are referred hereunder as the Charged Shares. 

 
 SECURITY FOR OBLIGATIONS 
  
 3. This Legal Charge over Shares secures the payment of all of the Secured Obligations.

  
 DELIVERY OF CHARGED SHARES 
  
 4. (a) All certificates or instruments representing or evidencing the Charged Shares shall
be delivered to and held by or on behalf of the Collateral Agent pursuant hereto and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and
substance reasonably satisfactory to the Collateral Agent. Each of the Chargors shall promptly deliver to the Collateral Agent, certificates or other instruments representing or evidencing the Charged Shares acquired or received after the date of
this Charge 

  

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with a share transfer or such other instrument of transfer or assignment in blank duly executed by the relevant Chargor. If at any time the Collateral Agent
notifies a Chargor that, in its reasonable determination, it requires additional share transfers or such other instruments of transfer endorsed in blank, such Chargor shall promptly execute in blank and deliver the requested transfer
instrument to the Collateral Agent. 
  
 (b) The Collateral Agent
shall have the right, but not the obligation, in accordance with the terms of the Collateral Agency Agreement, at any time following the occurrence and during the continuation of an Event of Default, and without prior notice to the Chargor except as
may be required by applicable law, to transfer to or to register in the name of the Collateral Agent or any of its nominees any or all of the Charged Shares, subject only to the revocable rights specified in Section 7(a) hereof. The Collateral Agent
shall notify the Chargor of such transfer to or registration in the name of the Collateral Agent or its nominee promptly thereafter, provided, however, that failure to provide such notice shall not invalidate or otherwise affect such transfer
or registration nor shall the Collateral Agent have any liability to the Chargors for failure to give any such notice. The Collateral Agent shall have the right at any time to exchange certificates or instruments representing or evidencing Charged
Shares for certificates or instruments of smaller or larger denominations. 
  
 REPRESENTATIONS AND WARRANTIES 
  
 5. The Chargor
represents and warrants as follows as of the date hereof: 
  
 (a) The Shares
Charged of the Chargor are validly issued and fully paid for and non-assessable. 
  
 (b) The Chargor is the legal and beneficial owner of the Charged Shares indicated as owned by it in the definition of Charged Shares free and clear of any lien, security interest, option or other charge or encumbrance other than by virtue
of this Charge. 
  
 (c) No options, warrants or other agreements with respect to
the Charged Shares are outstanding. 
  

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 (d) Upon the delivery to the Collateral Agent of the certificates or other instruments evidencing the Charged Shares
together with an undated share transfer form executed by the Chargor transferring the Charged Shares to the Collateral Agent, the Collateral Agent will have a valid, perfected first priority Lien on the Charged Shares, enforceable as such against
all creditors of the Chargor, except for the security interest under this Charge or any other Lien permitted by the Transaction Documents, and against all Persons purporting to purchase any of the Charged Shares from the Chargor. 
  
 VOTING RIGHTS; DIVIDENDS; ETC. 
  
 6. (a) So long as no Event of Default has occurred and is continuing: 
  
 (i) Each Chargor shall be entitled to exercise any and all voting and other consensual rights
pertaining to its Charged Shares or any part thereof for any purpose not inconsistent with the express terms of this Charge or the Credit Agreement. 
  
 (ii) Each Chargor shall be entitled to receive and retain, free and clear of all liens hereunder, any and all dividends permitted under the Credit Agreement paid in
respect of its Charged Shares, provided, however, that any and all 
  
 (A) dividends and interest paid or payable other than in cash in respect of, any instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any Charged Shares, 
  
 (B) dividends and other distributions paid or payable in cash in respect of
any Charged Shares in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in-surplus, and 
  
 (C) cash paid, payable or otherwise distributed in respect of principal of, or in redemption of, or in exchange for, any
Charged Shares and shall be forthwith delivered to the Collateral Agent to deposit it in the Collateral Account and to hold as Charged Collateral and shall, if received by a Chargor, be received in trust for the benefit of the Collateral Agent and
be forthwith delivered to the Collateral Agent as Charged Collateral the same form as so received (with any necessary endorsement). 
  

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 (iii) The Collateral Agent shall, at the expense of a Chargor, execute and deliver (or cause to be executed and
delivered) to such Chargor all such proxies and other instruments as such Chargor may reasonably request for the purpose of enabling such Chargor to exercise the voting and other rights which such Chargor is entitled to exercise pursuant to
paragraph (i) above and to receive the dividends or interest payments which it is authorized to receive and retain pursuant to paragraph (ii) above. 
  
 (b) Upon the occurrence and during the continuance of an Event of Default: 
  
 (i) All rights of such Chargor to exercise the voting and other consensual rights which it would otherwise be entitled to
exercise pursuant to Section 6(a)(i) and to receive the dividends and interest payments which it would otherwise be authorized to receive and retain pursuant to Section 6(a)(ii) shall cease, and, all such rights shall thereupon become vested in the
Collateral Agent who shall thereupon have the right to exercise such voting and other consensual rights and to receive and hold as Charged Collateral such dividends and interest payments. 
  
 (ii) All dividends and interest payments which are received by the Chargor contrary to the provisions of paragraph (i) of this Section 6(b)
shall be received in trust for the benefit of the Collateral Agent, and shall be forthwith paid over to the Collateral Agent for deposit in the Collateral Account to hold as Charged Collateral in the same form as so received (with any necessary
endorsement) and shall be held and disbursed pursuant to the Collateral Agency Agreement and the applicable Control Agreement, as the case may be. 
  
 TRANSFERS AND LIENS 
  
 7. (a) Chargor agrees that it will not, except as expressly permitted in the Transaction Documents, 
  
 (i) sell or otherwise dispose of, or grant any option with respect to, any of the Charged Shares, or 
  

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 (ii) create or permit to exist any lien, security interest, or other charge or encumbrance upon or with respect to any of
the Charged Shares, except for the security interest under this Charge or any other Lien permitted by the Transaction Documents. 
  
 (b) Chargor agrees that it will charge hereunder, promptly upon such Chargor’s acquisition thereof, any and all additional Share Capital of any Vessel Owner.

  
 POWER OF ATTORNEY 
  
 8. The Chargor by way of security upon an Event of Default and during its continuance hereby
irrevocably appoints the Collateral Agent and the persons deriving title under it severally to be its attorney in the name and on behalf and as the act and deed of the Chargor or otherwise to execute and complete any transfers or other documents
which the Collateral Agent may require for perfecting its title to or for vesting the Charged Shares in the Collateral Agent or its nominees or in any purchaser and to make to make any alteration or addition thereto and to re-deliver the same
thereafter and otherwise generally to sign seal and deliver and otherwise perfect any such transfers or other documents and any such legal or other charges or assignments over the Charged Shares required by the Collateral Agent and all such deeds
and documents and do all such acts and things as may be required for the full exercise of the powers hereby conferred including any sale or other disposition realization or getting in or to receive, indorse and collect all instruments made payable
to such Chargor representing any dividend, interest payment or other distribution in respect of the Charged Shares or any part thereof and to give full discharge for the same and this appointment shall operate as a general power of attorney. The
Chargor hereby covenants with the Collateral Agent to ratify and confirm any deed document act and thing and all transactions which any such attorney may lawfully execute or do. 
  

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 COLLATERAL AGENT MAY PERFORM 
  
 9. If the Chargor fails to perform any agreement contained herein, the Collateral Agent may (but shall have no obligation to) itself
perform, or cause performance of, such agreement, and the expenses of the Collateral Agent incurred in connection therewith shall be payable by the Chargor. 
  
 REASONABLE CARE 
  
 10. The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Charged Collateral in its possession if the Charged Collateral is accorded treatment substantially
equal to that which the Collateral Agent accords similiar property of the same type, or if it appoints an agent to hold the Charged Collateral on its behalf and such agent agrees to be bound by a similar standard of care, it being understood that
neither the Collateral Agent nor such agent shall have any responsibility for 
  
 (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Charged Collateral, whether or not the Collateral Agent or such agent has or is deemed to have knowledge
of such matters, or 
  
 (ii) taking any necessary steps to preserve rights against
any parties with respect to any Charged Collateral. 
  
 REMEDIES UPON
DEFAULT 
  
 11. If any Event of Default shall have occurred and be
continuing, to the extent permitted by applicable law: 
  
 (a) The
Collateral Agent may, in accordance with the terms of the Collateral Agency Agreement, 
  
 (i) exercise in respect of the Charged Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party on default (after demand for payment) and all
powers given to trustees under the Trustee Act Chapter 250 of the Laws of Barbados in respect of shares or property subject to a trust and any powers or rights which may be 

  

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exercisable by the person in whose name the Shares are registered or by the bearer thereof, and the Collateral Agent may also, 
  
 (ii) upon notice specified below, sell the Charged Collateral or any part thereof in one or
more parcels at public or private sale, at any exchange, broker’s board or at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as the
Collateral Agent may deem commercially reasonable and 
  
 (iii) may appoint by
instrument a receiver, receiver and manager or receiver-manager (the person so appointed is hereafter called the “Receiver”) of the Charged Collateral with or without bond as the Collateral Agent may determine, and from time to time remove
such Receiver and appoint another in its stead. The Chargor agrees that, to the extent notice of sale shall be required by law, at least 20 days’ notice to the Chargor of the time and place of any public sale or the time after which any private
sale may be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale of the Charged Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private
sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. 
  
 (b) Any cash held by the Collateral Agent as Charged Shares and all cash proceeds received by the Collateral Agent in respect of any sale
of, or other realization upon all or any part of the Charged Collateral shall be deposited in the Collateral Account and disbursed in accordance with the Collateral Agency Agreement or the applicable Control Agreement, as the case may be.

  
 SECURITY INTEREST VALID 
  
 12. All rights of the Collateral Agent and security interests hereunder, and all obligations
of the Chargors hereunder shall be valid and subsisting irrespective of, to the extent permitted by applicable law: 
  
 (a) any lack of validity or enforceability of any of the Transaction Documents or any other agreement or instrument relating thereto; 
  

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 (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Secured
Obligations, or any other amendment or waiver of or any consent to any departure from any of the Transaction Document or any extension of the maturity date of the Secured Obligations; 
  
 (c) any exchange, release or non-perfection of any other collateral, or any release or amendment or waiver of or consent to departure from
any guarantee, for all or any of the Secured Obligations; or 
  
 (d) any other
circumstance which might otherwise constitute a defence available to, or a discharge of the Chargor in respect of the Secured Obligations or otherwise. 
  
 AMENDMENTS, ETC. 
  
 13. No amendment or waiver of any provision of this Charge nor consent to any departure by the Chargor therefrom, shall in any event be effective unless the same shall be in writing and signed by the Collateral Agent
(acting in accordance with Section 7.1 of the Collateral Agency Agreement), and the Chargor with respect to any amendment and by the Collateral Agent (acting upon the written direction of the Trustee or the Agent) with respect to any waiver or
consent. With respect to any waiver or consent, such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 
  
 NOTICES 
  
 14. Any notice or other communication to be given pursuant hereto shall be in the manner provided in the Collateral Agency Agreement and addressed as follows: 

 
 If to the Collateral Agent, to 
  
 Wilmington Trust Company, as Collateral Agent 
  
 1100 North Market Street 
  
 Rodney Square North 
  

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 Wilmington, DE 19890 
  
 Attn: Corporate Trust 
  
 Telephone: (302) 636-6453 
  
 If to the
Chargor, to 
  
 Paula S. Lett (as Attorney-at-Law for the Chargor)

  
 Suite 102 Warrens Court 
  
 Warrens 
  
 St. Michael 
  
 Barbados 
  
 Telephone: (246) 425-3447 
  
 Fax: (246) 425-2949 
  
 Or at such other address as either party may notify to the other in writing. 
  
 CONTINUING SECURITY INTEREST 
  
 15. This Legal Charge over Shares shall create a continuing security interest in the Charged
Shares and shall (i) remain in full force and effect until the Secured Obligations have been paid in full or until such security interest is released pursuant to the provisions of the Collateral Agency Agreement, 
  
 (ii) be binding upon and inure to the benefit of the Chargor, each of the Chargor’s
executors, administrators, successors and assigns, and 
  
 (iii) inure to the
benefit of and be binding upon the Collateral Agent and its successors, transferees and assigns. Upon the payment in full of the Secured Obligations or compliance with the provisions of the Collateral Agency Agreement, the Chargor shall be entitled
to the return, upon its request and at its expense, of such of the Charged Shares as shall not have been sold or otherwise applied pursuant to the terms hereof. 
  

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 GOVERNING LAW 
  
 16. This Legal Charge over Shares shall be governed by and construed in accordance with the laws of Barbados. 
  
 RIGHTS OF THE COLLATERAL AGENT 
  
 17. The Collateral Agent shall be entitled to all of the same rights, protections,
immunities and indemnities set forth in the Collateral Agency Agreement as if specifically set forth herein. 
  
 IN WITNESS WHEREOF, The Chargor and the Collateral Agent by its duly authorized officers have or have caused this Agreement to be duly executed and delivered under seal as of the date first above written. 

 

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 SIGNED SEALED AND DELIVERED 
  
 By the said 
 WILMINGTON TRUST COMPANY, not 
 in its individual capacity but solely as 
 Collateral Agent 
 By: /s/ James J. McGinley 
 Its: Authorized Person 
  
 In the presence of: 
  
 Witness: /s/ Sybrandt Davis 
 Name: Sybrandt
Davis 
 Calling or Description: Notary Public 
 Abode: State of
New York 
  
 SIGNED SEALED AND DELIVERED 
 By the said 
 SECUNDA GLOBAL MARINE INCORPORATED 
 By: /s Alfred A. Smithers 
 Its: Director and Authorized Person 
  
 in the presence of: 
  
 Witness: /s/ Sybrandt Davis 
 Name: Sybrandt
Davis 
 Calling or Description: Notary Public 
 Abode: State of
New York 
  

 13Nonqualified Stock Option Agreement dated September 30, 1998

 Exhibit 4.1 
  

NEW CENTURY FINANCIAL CORPORATION 
  
 NONQUALIFIED STOCK OPTION AGREEMENT 
  
 THIS NONQUALIFIED STOCK OPTION AGREEMENT (this “Agreement”) dated as of the 30th day of September, 1998, by and between NEW
CENTURY FINANCIAL CORPORATION, a Delaware corporation (the “Company”), and Fredric Forster (the “Optionee”). 
  
 WITNESSETH 
  
 WHEREAS, the Optionee is a member of the Board of Directors of the Company (the “Board”); and 
  
 WHEREAS, the Company has granted to the Optionee effective as of the
17th day of September, 1998 (the “Grant Date”) a nonqualified stock option to purchase all or any part of 10,000 shares of the Company’s Common Stock, par value $0.01 per share (the “Common Stock”), subject to
and upon the terms and conditions set forth herein; 
  
 NOW,
THEREFORE, in consideration of the mutual promises and covenants made herein and the mutual benefits to be derived herefrom and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

  

	1.	Grant of Option. This Agreement evidences the Company’s grant to the Optionee of the right and option to purchase, subject to and on the terms and conditions set
forth herein, all or any part of 10,000 shares of the Company’s Common Stock (the “Shares”) at the price of $10.00 per Share (the “Option”), exercisable from time to time, subject to the provisions of this
Agreement, prior to the close of business on the day before the tenth anniversary of the Grant Date (the “Expiration Date”), unless earlier terminated pursuant to Section 4 or 6. Such price equals not less than the fair market value
of the Common Stock as of the Grant Date. 

  

	2.	Exercisability of Option. The Option shall vest and become exercisable in installments in accordance with the following schedule: (i) 3,334 of the total number of
Shares subject to the Option shall vest and become exercisable on the first anniversary of the Grant Date, (ii) an additional 3,333 of the total number of Shares subject to the Option shall vest and become exercisable on the second anniversary of
the Grant Date, and (iii) the remaining 3,333 Shares subject to the Option shall vest and become exercisable on the third anniversary of the Grant Date. 

  
 If the Optionee does not in any year purchase all or any part of the Shares to which the Optionee is entitled, the Optionee
has the right cumulatively thereafter to purchase any Shares not so purchased and such right shall continue until the Option terminates or 

  

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expires. The Option shall only be exercisable in respect of whole Shares, and fractional Share interests shall be disregarded. The Option may only be
exercised as to at least 100 Shares unless the number purchased is the total number at the time available for purchase under the Option. 
  

	3.	Method of Exercise of Option. The Option shall be exercisable by the delivery to the Secretary of the Company of a written notice stating the number of Shares to be
purchased pursuant to the Option and accompanied by (i) delivery of an executed Exercise Agreement in the form attached hereto as Exhibit A, (ii) payment of the full purchase price of the Shares to be purchased, and (iii)
payment in full of any tax withholding obligation under federal, state or local law. Payment shall be made in the form of cash, by check payable to the order of the Company, in shares of Common Stock valued at their fair market value at the close of
trading on the trading date next preceding the date of exercise of the Option, or partly in such shares and partly in cash. Any shares of Common Stock used by the Optionee to exercise the Option must have been owned by the Optionee for at least six
months prior to such use. In addition, the Optionee (or the Optionee’s beneficiary or personal representative) must furnish any written statements required pursuant to Section 9 of this Option Agreement. 

  

	4.	Termination of Directorship. If the Optionee’s services as a member of the Board terminate: (i) any portion of the Option which is not vested and exercisable as
of the date of such termination shall terminate; (ii) if such termination is due to the Optionee’s death or Total Disability, the Optionee (or his successor in the event of his death, or personal representative in the event of his incapacity)
shall have until the date that is one year after the date of such termination (subject to the term of the Option set forth in Section 1) to exercise the Option to the extent that it was vested and exercisable on the date of his termination (the
vested portion of the Option, to the extent not exercised at the end of such one-year period, shall terminate); and (iii) if such termination is due to any reason other than the Optionee’s death or Total Disability, the Optionee shall have
until the date that is six months after the date of such termination (subject to the term of the Option set forth in Section 1) to exercise the Option to the extent that it was vested and exercisable on the date of his termination (the vested
portion of the Option, to the extent not exercisable at the end of such six-month period, shall terminate). 

  
 For purposes of the foregoing, “Total Disability” means a “permanent and total disability” within the meaning of Section 22(c)(3) of
the Internal Revenue Code of 1986, as amended. 
  

	5.	 Option Not Transferable. The Option may be exercised only by, and shares issuable pursuant to the Option shall be issued only to the Optionee or, if
the Optionee has died, his beneficiary or, if the Optionee has suffered a permanent and total disability, his personal representative, if any, or if there is none, the Optionee or a third party pursuant to such conditions and procedures as the Board
may establish. Other than by will or the laws of descent and distribution, no right or benefit under the Option shall be transferrable by the Optionee or shall be subject in any manner to anticipation, alienation, 

  

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sale, transfer, assignment, pledge, encumbrance or charge and any such attempted action shall be void. 

  

	6.	Adjustments Upon Changes in Capitalization. 

  
 If the outstanding shares of Common Stock are changed into or exchanged for cash or a different number or kind of shares or securities of the Company or
of another issuer, or if additional shares or new or different securities are distributed with respect to the outstanding shares of the Common Stock, through a reorganization or merger to which the Company is a party, or through a combination,
consolidation, recapitalization, reclassification, stock split, stock dividend, reverse stock split, stock consolidation or other capital change or adjustment, an appropriate adjustment shall be made in the number and kind of shares or other
consideration that is subject to or may be delivered under the Option. 
  
 Upon the occurrence of an Event, the Option shall become immediately exercisable to the full extent theretofore not exercisable. 
  
 If the Option has been fully accelerated as described in the foregoing paragraph but is not exercised prior to (i) a dissolution of the Company, or (ii)
an event described above that the Company does not survive, the Option shall thereupon terminate. 
  
 For purposes of this Section 6, “Event” means any of the following: (i) approval by the shareholders of the Company of the dissolution or
liquidation of the Company; (ii) approval by the shareholders of the Company of an agreement to merge or consolidate, or otherwise reorganize, with or into one or more entities other than subsidiaries, as a result of which less than 50% of the
outstanding voting securities of the surviving or resulting entity are, or are to be, owned by former shareholders of the Company; or (iii) approval by the shareholders of the Company of the sale of substantially all of the Company’s business
assets to a person or entity which is not a subsidiary of the Company. 
  

	7.	Securities Law Compliance. 

  
 7.1. Investment Representations. The Optionee acknowledges that the Option and Shares are not being registered under the Securities Act of
1933, as amended (the “Securities Act”), based, in part, on reliance that the issuance of the Shares is exempt from registration under Regulation D of the Securities Act and exempt from qualification under California Corporate Securities
Law § 25102(f) or other applicable exemption. The Optionee acknowledges that by executing this Agreement he or she makes the representations below: 
  
 No Intent to Sell. The Optionee represents that he/she is acquiring the Option and if and when he/she exercises the Option will acquire any Shares
solely for his/her own account, for investment purposes only, and not with a view to or an intent to sell, or to offer for resale in connection with any unregistered distribution 

  

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of all or any portion of the Shares within the meaning of the Securities Act or applicable state securities laws. 
  
 No Reliance on Company. In evaluating the merits and risks of an
investment in the Shares, the Optionee represents that he/she has and will rely upon the advice of his/her own legal counsel, tax advisors, and/or investment advisors. 
  
 Relationship to and Knowledge About Company. The Optionee represents that he/she is knowledgeable about the Company
and has a preexisting personal or business relationship with the Company. As a result of such relationship, he/she is familiar with, among other characteristics, its business and financial circumstances and has access on a regular basis to or may
request the Company’s condensed consolidated balance sheet and condensed consolidated income statement setting forth information material to the Company’s financial condition, operations and prospects. 
  
 Risk of Loss. The Optionee represents that he/she is aware that the
Option may be of no practical value, that any value it may have depends on its vesting and exercisability as well as an increase in the fair market value of the underlying Shares from the date of grant to the date of exercise. 
  
 Restrictions on Shares. The Optionee represents that he/she
understands that any Shares acquired on exercise of the Option will be characterized as “restricted securities” under the federal securities laws since the Shares are being acquired from the Company in a transaction not involving a public
offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances. The Optionee acknowledges receiving a copy of Rule 144 promulgated under
the Securities Act, as presently in effect, and represents that he/she is familiar with such rule, and understands the resale limitations imposed thereby and by the Securities Act and applicable state securities laws. 
  
 Additional Restrictions. The Optionee represents that he/she has read
and understands the restrictions and limitations imposed on the Option and any Shares which may be acquired thereunder, including, but not limited to, the non-transferability provisions of Section 5. 
  
 No Company Representations. The Optionee represents that at no time
was an oral representation made to him/her relating to the Option or the purchase of Shares and that he/she was not presented with or solicited by any promotional meeting or material relating to the Option or the Shares. 
  
 Share Certificate Legend. The Optionee represents that he/she
understands and acknowledges that any certificate evidencing the Shares (or evidencing any other securities issued with respect thereto pursuant to any stock split, stock dividend, 

  

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merger or other form of reorganization or recapitalization) if and when issued shall bear, in addition to any other legends which may be required by
applicable state securities laws, the legend set forth in Section 8.2. 
  
 7.2. Stock Certificate Legend. The Optionee understands and acknowledges that the certificate evidencing the shares (or evidencing any other securities issued with respect thereto pursuant to any stock split, stock dividend,
merger or other form of reorganization or recapitalization) if and when issued shall bear, in addition to any other legends which may be required by the Exercise Agreement or applicable state securities laws, the following legends: 
  
 “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, BUT ARE ISSUED IN RELIANCE ON THE REPRESENTATION THAT THEY ARE TAKEN FOR INVESTMENT AND NOT FOR REDISTRIBUTION. AS A CONDITION OF ANY TRANSFER HEREOF, THE COMPANY MAY REQUIRE AN OPINION OF COUNSEL
SATISFACTORY TO IT THAT ALL STATUTORY REGISTRATION PROVISIONS HAVE BEEN MET OR DO NOT APPLY.” 
  

	8.	Assignment. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and
permitted assignees. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned (except as otherwise expressly provided herein) by either party without the prior written consent of the other.

  

	9.	Privileges of Stock Ownership. Except as otherwise expressly authorized by the Board, the Optionee shall not be entitled to any privilege of stock ownership as to any
Shares not actually delivered to and held of record by him. No adjustment will be made for dividends or other rights as a shareholder for which a record date is prior to such date of delivery. 

  

	10.	Notices. Any notice to be given under the terms of this Agreement shall be in writing and addressed to the Company at its principal office to the attention of the
Secretary, and to the Employee at the address given beneath the Employee’s signature hereto, or at such other address as either party may hereafter designate in writing to the other. Any such notice shall be deemed to have been duly given when
enclosed in a properly sealed envelope addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid) in a post office or branch post office regularly maintained by the United States Government.

  

	11.	 Entire Agreement. This Agreement and the Exercise Agreement, together, constitute the entire agreement and supersede all prior understandings and
agreements, written or oral, of the parties hereto with respect to the subject matter hereof. This Agreement and the Exercise Agreement may be amended only by mutual agreement of the parties. Such amendment must be in writing and signed by both
parties. The Company may, however, 

  

 5 

	 	 
unilaterally waive any provision hereof in writing to the extent such waiver does not adversely affect the interests of the Optionee hereunder, but no such
waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. 

  

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

  

	13.	Rights of Optionee. 

  
 Nothing contained in this Agreement or in any other documents related to this Agreement shall confer upon the Optionee any right to continue in the
service or employ of the Company or constitute any contract or agreement of service or employment, or interfere in any way with the right of the Company to reduce the Optionee’s compensation or other benefits or to terminate the services or
employment of the Optionee, with or without cause, but nothing contained in this Agreement or any document related thereto shall affect any independent contractual right of the Optionee. Nothing contained in this Agreement or any document related
hereto shall influence the construction or interpretation of the Company’s Certificate of Incorporation or Bylaws regarding service on the Board. 
  
 The Option shall be payable in shares of Common Stock (subject to adjustment as described above) and no special or separate reserve, fund or deposit shall
be made to assure payment of the Option. Neither the Optionee nor any other person shall have any right, title or interest in any fund or in any specific asset (including shares of Common Stock) of the Company by reason of the Option. Neither the
provisions of this Agreement (or of any documents related hereto), nor the grant of the Option shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the Company and the Optionee or other person. 

 

	14.	Compliance With Laws. Notwithstanding anything else contained herein to the contrary, this Agreement, the granting and vesting of the Option and the offer, issuance
and delivery of Shares under this Agreement are subject to compliance with all applicable federal and state laws, rules and regulations (including but not limited to state and federal securities laws and federal margin requirements) and to such
approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. Any securities delivered in respect of this Agreement will be subject to such
restrictions, and to any restrictions the Company may require to preserve a pooling of interests under generally accepted accounting principles, and the person acquiring such securities will, if requested by the Company, provide such assurances and
representations to the Company as the Company may deem necessary or desirable to assure compliance with all applicable legal requirements. 

  

 6 

 No holder of any Shares shall sell, pledge or otherwise transfer Shares acquired pursuant to the Option or any interest
in such Shares except in accordance with the express terms of this Agreement. Any attempted transfer in violation of this Agreement shall be void and of no effect. Without in any way limiting the provisions set forth above and subject to further
limitations set forth herein, no holder of Shares shall make any disposition of all or any portion of Shares acquired pursuant to an Option, except in compliance with all applicable federal and state securities laws and unless and until: 

 
 (a) there is then in effect a registration statement under the Securities
Act covering such proposed disposition and such disposition is made in accordance with such registration statement; or 
  
 (b) such disposition is made in accordance with Rule 144 under the Securities Act; or 
  
 (c) such holder notifies the Company of the proposed disposition and furnishes the Company with a statement of the
circumstances surrounding the proposed disposition, and, if requested by the Company, such holder furnishes the Company with an opinion of counsel acceptable to the Company’s counsel, that such disposition will not require registration under
the Securities Act and will be in compliance with all applicable state securities laws. 
  
 (Remainder of Page Intentionally Left Blank) 
  

 7 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by a duly
authorized officer and the Optionee has hereunto set his or her hand as of the date first written above. 
  

			
	NEW CENTURY FINANCIAL CORPORATION
	 a Delaware corporation

		
	By:	 	/s/    BRAD A. MORRICE        
		
	 Its:
	 	President

  

	
	OPTIONEE
	
	/s/    FREDRIC JAN
FORSTER        
	Signature
	
	 Fredric Jan Forster

	Print Name
	
	 1221 Starboard Way

	Address
	
	 Corona del Mar, CA 92625

	City, State, Zip Code

  

 8

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