Waiver and Termination of Board Representation Rights under Preferred Stock Purchase Agreement between U.S. Bancorp and New Century Financial Corporation

Summary

U.S. Bancorp notifies New Century Financial Corporation that it is ending its right to have representatives on New Century’s Board of Directors, as previously granted in their Preferred Stock Purchase Agreement dated October 18, 1998. This letter serves as a formal termination of those rights and waives related obligations of New Century. From the date of this notice, any board members serving at U.S. Bancorp’s request will no longer do so as its designees.

EX-10.88 22 a2042227zex-10_88.txt EXHIBIT 10.88 Exhibit 10.88 [U.S. Bancorp Letterhead] March 29, 2001 New Century Financial Corporation 18400 Von Karman, Suite 1000 Irvine, California 92612 Attention: Brad A. Morrice Re: WAIVER OF RIGHTS REGARDING BOARD OF DIRECTORS Gentlemen: This letter shall serve as notice under Section 12.8 of that certain Preferred Stock Purchase Agreement between New Century Financial Corporation ("New Century") and U.S. Bancorp, dated as of October 18, 1998 (the "Purchase Agreement"). U.S. Bancorp hereby terminates its right to representation on the New Century Board of Directors granted under Sections 8.3(a) and (b) of the Purchase Agreement. This notice shall operate as a termination, rather than a waiver, of U.S. Bancorp's right, notwithstanding the provisions of Section 8.3(d) of the Purchase Agreement. U.S. Bancorp also hereby waives the obligations of New Century contained in Section 8.3(c) of the Purchase Agreement. From and after the date of this notice, the members of the Board of Directors of New Century who are currently serving at the request of U.S. Bancorp shall no longer serve as the designees of U.S. Bancorp. Sincerely, U.S. BANCORP By: /s/ Lee R. Mitau ------------------------- Lee R. Mitau Executive Vice President and General Counsel cc: Robert K. Cole