NEW CENTURY FINANCIAL CORPORATION
2006 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

The purpose of this Plan is to promote the success of the Company by providing a supplemental retirement benefit to a select group of management and highly compensated employees, as set forth in Sections 201, 301 and 401 of ERISA. This Plan is effective as of the Effective Date.

Whenever the following words and phrases are used in this Plan, with the first letter capitalized, they shall have the meanings specified below.

"Board" shall mean the Board of Directors of the Company.

"Cause" shall have the meaning ascribed to such term in the Employment Agreement.

"Code" shall mean the Internal Revenue Code of 1986, as amended.

"Committee" shall mean the Compensation Committee of the Board, which shall administer this Plan in accordance with Section 5.

"Company" shall mean New Century Financial Corporation, a Maryland corporation, and any successor corporation.

"DCP" shall mean the New Century Financial Corporation Deferred Compensation Plan, as amended from time to time.

"Effective Date" shall have the meaning ascribed to such term in the Employment Agreement.

"Employment Agreement" with respect to a Participant shall mean the written employment agreement in effect between such Participant and the Company as of the date of the termination of such Participant's employment with the Company.

"ERISA" shall mean the Employee Retirement Income Security Act of 1974, as amended.

"Good Reason" shall have the meaning ascribed to such term in the Employment Agreement.

"Participant" shall mean an employee of the Company who is member of a select group of management and highly compensated employees, as set forth in Sections 201, 301 and 401 of ERISA and has been selected by the Committee to participate in the Plan. The Participants selected by the Committee to participate in the Plan are Robert K. Cole, Edward F. Gotsch all and, subject to the provisions of Section 3.4, Brad A. Morrice.

"Plan" shall mean this New Century Financial Corporation 2006 Supplemental Executive Retirement Plan set forth herein, now in effect, or as amended from time to time in accordance with Section 6.5.

"Supplemental Benefit" shall have the meaning set forth in Section 3.1.

"Trust" means a grant or trust maintained under the terms of the related Trust Agreement.

"Trust Agreement" means a trust agreement entered into by and between the Company and the related Trustee with respect to this Plan, as amended from time to time.

"Trustee" means the entity, which has entered into the related Trust Agreement as trustee of the Trust thereunder, and any duly appointed successor.

3.1 Plan Benefits. Subject to Section 3.4 in the case of Mr. Morrice, the Company shall pay to each Participant a supplemental retirement benefit each year for ten (10) years commencing with the year following the year in which the Participant attains age 65 (the "Supplemental Benefit"). The amount of each annual installment payment shall be FOUR HUNDRED AND FORTY-SEVEN THOUSAND, SEVEN HUNDRED AND FIFTY DOLLARS ($447,750).

3.2 Death Benefits. In the event of the Participant's death before the entire amount of the Participant's Supplemental Benefit has been paid in accordance with Section 3.1, the unpaid portion of such Supplemental Benefit shall be paid to the Participant's estate in a non-discounted lump sum as soon as practicable after the Participant's death.

3.3 Payment of Benefits Conditional. Notwithstanding any other provision herein or in any Employment Agreement, the Company's obligation to pay any portion of the Supplemental Benefit with respect to a Participant under this Section 3 shall be subject to such Participant's compliance with the provisions of Section 4 through the date of such payment, as reasonably determined by the Committee in good faith based on the information then known to it.

3.4 Terms of Mr. Morrice's Participation. Notwithstanding Section 3.1, Mr. Morrice shall be entitled to participate and receive benefits hereunder only in the event that Mr. Morrice's employment with the Company is terminated by the Company without Cause or by Mr. Morrice with Good Reason. In the event that such a termination occurs, Mr. Morrice will be entitled to payment of the Supplemental Benefit in accordance with this Section 3; provided, however, that Mr. Morrice's Supplemental Benefit shall be reduced by the amount (if any) by which (a) the present value of Mr. Morrice's Supplemental Benefit as of the date of such termination of Mr. Morrice's employment, exceeds (b) the present value of any benefit payments to which Mr. Morrice is entitled under the DCP as of the date of such termination to the extent that such benefit payments are attributable to (i) mandatory contributions to the DCP of Mr. Morrice's short-term incentive payments, (ii) any matching contributions made by the Company to the DCP with respect to such mandatory contributions, and (iii) any investment earnings on the amounts identified in the foregoing clauses (i) and (ii) (collectively, "DCP SERP Benefits"). For purposes of clarity, in the event that the present value of Mr. Morrice's Supplemental Benefit hereunder as of the date of such termination of his employment does not exceed the present value of any payments of Mr. Morrice's DCP SERP Benefits as of such date, Mr. Morrice shall not be entitled to any payment of a Supplemental Benefit hereunder. In the event that the amount of Mr. Morrice's Supplemental Benefit is reduced pursuant to this Section 3.4, such reduction shall be applied substantially equally across all installments of his Supplemental Benefit. For purposes of this Section 3.4, present values shall be calculated as of the last day that Mr. Morrice is employed by the Company using a discount rate equal to the one-year London Interbank Offered Rate on such date plus two (2) percentage points.

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