Document:

exv10w1

 

Exhibit 10.1

Execution Version

SENIOR SECURED LOAN AGREEMENT

     THIS SENIOR SECURED LOAN AGREEMENT (“Loan Agreement”) dated as of April 8, 2008, sets
forth the terms of a financing transaction by and between Origen Financial L.L.C., a Delaware
limited liability company (“Borrower”), and the William M. Davidson Trust u/a/d December
13, 2004 (“Lender”), and certain agreements between the parties related thereto, all as set
forth herein.

     In consideration of the mutual covenants and agreements set forth herein, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereby agree as follows:

     1. Term Loan. Subject to the terms and conditions set forth in this Loan Agreement
and the other Loan Documents (as hereinafter defined), Lender hereby agrees to lend to Borrower,
and Borrower agrees to borrow from Lender, a senior secured non-convertible term loan in the
principal amount of Forty Six Million and 00/100 Dollars ($46,000,000) (the “Term Loan”).
The proceeds of the Term Loan shall be advanced in a single aggregate advance of Forty Six Million
and 00/100 Dollars ($46,000,000) at the Closing, as hereinafter defined.

     2. Promissory Note. The Term Loan shall be evidenced by a promissory note (the
“Note”) in the principal amount of $46,000,000, duly executed by Borrower and payable to
the order of Lender. Interest on the outstanding principal balance of the Note shall accrue at the
rate set forth therein. Payment of principal of and interest on the Note shall be due and payable
at the times, and in accordance with the terms and conditions, set forth in the Note and in this
Loan Agreement. The Note shall mature and be finally due and payable in full on the Maturity Date
(as defined in the Note).

     3. Collateral. As collateral security for the repayment in full of (a) the
outstanding principal of, and all interest on, the Note, and any renewal, extension or refinancing
thereof; (b) all debts, liabilities, obligations, covenants and agreements of the Credit Parties
(as defined below) contained in this Loan Agreement and the other Loan Documents (as defined
below); (c) any and all other debts, liabilities and obligations of the Credit Parties to Lender
and; (d) all obligations of Borrower to Lender under the 2007 Facility (defined below)
(collectively, the “Obligations”):

     (a) Borrower shall execute and deliver (and shall cause Origen Servicing, Inc. (“OSI”),
Origen Securitization Company, LLC (“OSC”), and Origen Financial, Inc. (“Issuer”) to execute
and deliver) to Lender an amended and restated security agreement acceptable to Lender (the
“Security Agreement”) pursuant to which Borrower, OSI, OSC and Issuer shall pledge
and grant a security interest in the Collateral (as defined therein) to Lender as security
for the Obligations;

     (b) Each of Issuer, OSI and OSC shall execute and deliver to Lender an amended and
restated guaranty (the “Guaranty”) pursuant to which Issuer, OSI and OSC shall
guarantee the payment of the Obligations;

 

 

     (c) OSC shall execute and deliver to Lender concurrently with the funding of the Term
Loan, a pledge agreement acceptable to Lender (the “OSC Pledge Agreement”) pursuant
to which OSC shall pledge and grant a security interest in all of the equity interests of
Origen CMO Residual Holding Company, LLC to Lender as security for the Obligations, together
with the original certificates representing such equity interests and a duly executed
assignment separate from certificate in a form reasonably acceptable to Lender;

     (d) Borrower shall execute and deliver to Lender concurrently with the funding of the
Term Loan, a pledge agreement acceptable to Lender (the “Borrower Pledge Agreement”)
pursuant to which Borrower shall pledge and grant a security interest in all of its
ownership interests in OSI and OSC to Lender as security for the Obligations, together with
the original certificates representing such equity interests and a duly executed assignment
separate from certificate in a form reasonably acceptable to Lender;

     (e) Issuer shall execute and deliver to Lender concurrently with the funding of the
Term Loan , a pledge agreement acceptable to Lender (the “Issuer Pledge Agreement,”
and together with the OSC Pledge Agreement and the Borrower Pledge Agreement, the
“Pledge Agreements”) pursuant to which Issuer shall pledge and grant a security
interest in all of the membership interests in Borrower to Lender as security for the
Obligations, together with the original certificates representing such equity interests and
a duly executed assignment separate from certificate in a form reasonably acceptable to
Lender; and

     (f) If and when the residual interests in the securitized pools of loans currently
owned by OSC are transferred to any other direct or indirect wholly-owned or partially-owned
subsidiary of Issuer (the “Residual Transferee”), Borrower shall cause the Origen
entity that owns the equity interests of the Residual Transferee to guaranty the obligations
of Borrower under the Loan Documents and to pledge and grant a security interest in all of
the equity interests of the Residual Transferee that such entity owns, pursuant to a pledge
agreement substantially on the terms of the Borrower Pledge Agreement. Lender acknowledges
that if the residual interests are transferred to a Residual Transferee, the Origen entities
may not own all of the issued and outstanding equity securities of the Residual Transferee.

     This Loan Agreement, the Note, the Security Agreement, the Guaranty, the Pledge Agreements and all
other instruments and documents evidencing, securing, governing, guaranteeing and/or pertaining to
the Term Loan are referred to collectively herein as the “Loan Documents.”

     4. Closing. The closing of the transactions contemplated by this Loan Agreement (the
“Closing”), shall take place at 10:00 a.m., Eastern time, on April ___, 2008 (the
“Closing Date”), at such place as the parties may agree. At the Closing the parties shall,
respectively, make or cause to be made the following simultaneous deliveries:

     (a) Borrower shall deliver or cause to be delivered to Lender:

2

 

     (i) this Loan Agreement, duly executed on behalf of Borrower;

     (ii) the Note, duly executed on behalf of Borrower;

     (iii) the Security Agreement, duly executed on behalf of Borrower, OSI, OSC and
Issuer;

     (iv) the OSC Pledge Agreement, duly executed on behalf of OSC;

     (v) the Borrower Pledge Agreement, duly executed on behalf of Borrower;

     (vi) the Issuer Pledge Agreement, duly executed on behalf of Issuer;

     (vii) the Guaranty, duly executed on behalf of Issuer, OSI and OSC;

     (viii) an immediately exercisable five-year warrant (the “Warrant”),
pursuant to which Issuer will grant to Lender the right to purchase 2,600,000 shares
of Issuer’s common stock $0.01 par value per share (the “Common Stock”) at an
exercise price equal to the closing consolidated bid price of Common Stock
immediately prior to the issuance of the Warrant, subject to proportional adjustment
for stock splits, stock dividends and recapitalizations;

     (ix) a registration rights agreement (the “Registration Rights
Agreement”), duly executed on behalf of Issuer, granting Lender certain
registration rights in respect of the shares of Common Stock issued upon exercise of
the Warrant;

     (x) with respect to each Credit Party (as defined below), copies of (A) its
organizational documents, certified by its secretary (or equivalent) as being true
and correct as of the Closing, (B) certificates of appropriate governmental
officials as to its good standing, (C) an incumbency certificate for all its
officers who will be authorized to execute any of the Loan Documents on behalf of
such Credit Party, and (D) copies of resolutions (or equivalent) adopted by such
Credit Party approving the Loan Documents and the transactions contemplated by this
Loan Agreement, certified by its secretary (or equivalent) as being true and correct
as of the Closing;

     (xi) an origination fee equal to 1.5% of the original principal balance of the
Term Loan, by wire transfer of immediately available funds;

     (xii) an Amended and Restated Senior Secured Promissory Note of even date
herewith (the “Restated $10 Million Note”) in the original principal amount
of $10,000,000 executed by Borrower in favor of Lender, which is an amendment and
restatement of the Senior Secured Promissory Note dated September 11, 2007, executed
by Borrower in favor of Lender, pursuant to which

3

 

     the interest payable on such note will be payable monthly rather than
quarterly, duly executed on behalf of Borrower;

     (xiii) an Amended and Restated Senior Secured Promissory Note of even date
herewith (the “Restated $5 Million Note”) in the original principal amount
of $5,000,000 executed by Borrower in favor of Lender, which is an amendment and
restatement of the Senior Secured Convertible Promissory Note dated September 11,
2007, executed by Borrower in favor of Lender, pursuant to which the interest
payable on such note will be payable monthly rather than quarterly and the
indebtedness thereunder will no longer be convertible into Common Stock, duly
executed on behalf of Borrower;

     (xiv) a termination (the “2007 Warrant Termination”) of the Stock
Purchase Warrant, Certificate No. W-1, dated September 11, 2007 issued by Issuer to
Lender, duly executed on behalf of Issuer;

     (xv) a termination (the “2007 Registration Rights Termination”) of the
Registration Rights Agreement dated September 11, 2007 between Issuer and Lender,
duly executed on behalf of Issuer;

     (xvi) evidence (such as payoff letters and lien releases) satisfactory to
Lender that all indebtedness owed by Borrower under Borrower’s short-term
securitization facility used for warehouse financing with Citigroup Global Markets
Realty Corporation entered into in March 2003, as amended (the “Warehouse
Facility”), and Vanderbilt Mortgage and Finance, Inc. has been paid in full and
that all liens and security interests in collateral granted pursuant to the
Warehouse Facility and all agreements between Borrower and Vanderbilt Mortgage and
Finance, Inc. have been terminated;

     (xvii) certificates as to the existence and good standing and qualification to
do business of Issuer, Borrower, OSC and OSI, dated as of a recent date;

     (xviii) certificates evidencing the insurance coverage required under this
Agreement;

     (xix) such Uniform Commercial Code financing statements in favor of Lender as
shall be necessary to perfect Lender’s rights in the Collateral;

     (xx) an opinion of counsel to Borrower, Issuer, OSC and OSI, in form and
substance reasonably acceptable to Lender; and

     (xxi) any additional instruments or documents that Lender may reasonably
request.

     (b) Lender shall deliver to Borrower:

     (i) this Loan Agreement, duly executed by Lender;

4

 

     (ii) the Term Loan proceeds by wire transfer of immediately available funds to
an account designated by Borrower;

     (iii) the Security Agreement, duly executed on behalf of Lender, as the secured
party;

     (iv) the Pledge Agreements, duly executed on behalf of Lender, as the secured
party;

     (v) the Registration Rights Agreement, duly executed on behalf of Lender;

     (vi) the Warrant, duly executed on behalf of Lender;

     (vii) the 2007 Warrant Termination, duly executed on behalf of Lender, and the
original Stock Purchase Warrant, Certificate No. W-1, for cancellation by Issuer;
and

     (viii) the 2007 Registration Rights Termination, duly executed on behalf of
Lender.

     5. Representations and Warranties of Borrower. Borrower hereby represents and
warrants to Lender, with respect to Borrower and each of Issuer, OSI and OSC (together with
Borrower, each a “Credit Party,” and collectively, the “Credit Parties”), as
follows:

     (a) Organization and Qualification. Each Credit Party is duly organized,
validly existing and in good standing under the laws of its state of organization. Each
Credit Party has the requisite power and authority to carry on its business as currently
conducted. Each Credit Party is duly qualified to transact business in each jurisdiction,
if any, in which the failure to be so qualified would reasonably be expected to have a
material adverse effect on such Credit Party’s business, properties or financial condition
(a “Material Adverse Effect”).

     (b) Authorization. The making, execution, delivery and performance by Borrower
of this Loan Agreement and by each Credit Party of the Loan Documents to which such Credit
Party is a party, and compliance with their respective terms, have been duly authorized by
all necessary corporate or limited liability company action of Borrower or such other Credit
Party, as applicable and will constitute valid and legally binding obligations of Borrower
or such other Credit Party, as applicable, enforceable in accordance with their respective
terms, subject to: (i) judicial principles limiting the availability of specific
performance, injunctive relief, and other equitable remedies and (ii) bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter in effect
generally relating to or affecting creditors’ rights.

     (c) Financial Condition. Borrower has delivered to Lender Issuer’s Form 10-K
for the fiscal year ended December 31, 2007. The financial statements of Issuer

5

 

included therein (the “Financial Statements”) are complete and accurate in all
material respects and have been prepared in accordance with generally accepted accounting
principles applied on a consistent basis throughout the periods indicated, except for
matters that are not material either individually or in the aggregate. The Financial
Statements fairly present the financial condition and operating results of Issuer, as of the
dates and for the periods indicated therein. Except as disclosed in the Financial
Statements or as set forth in the Guaranty, no Credit Party is a guarantor or indemnitor of
any other person, firm or corporation. The Credit Parties maintain and will continue to
maintain a system of accounting and internal controls sufficient to meet the requirements of
financial reporting in accordance with generally accepted accounting principles.

     (d) Governmental Consents. No consent, approval, order or authorization of, or
registration, qualification, designation, declaration or filing with, any federal, state or
local governmental authority on the part of any Credit Party is required in connection with
the execution of this Loan Agreement or the other Loan Documents, except for those that
shall have been obtained or made in accordance with the requirements of the applicable
authority.

     (e) Litigation. There are no actions, suits, proceedings or investigations
pending or, to the best of Borrower’s knowledge, threatened before any court, administrative
agency or other governmental body against any Credit Party which, if determined adversely to
such Credit Party, would reasonably be expected to have a Material Adverse Effect. No
Credit Party is party or subject to, and none of its assets is bound by, the provisions of
any order, writ, injunction, judgment or decree of any court or government agency or
instrumentality which would reasonably be expected to have a Material Adverse Effect.

     (f) Intellectual Property. Each Credit Party has title to and ownership of, or
other rights to use pursuant to a valid lease or license, all copyrights, proprietary
rights, trademarks, service marks and trade names necessary for its business as now
conducted, except where the failure to have the same would not reasonably be expected to
have a Material Adverse Effect. No Credit Party has received any written or oral
communications alleging that such Credit Party has violated or, by conducting its business
as proposed, would violate any of the trademarks, service marks, trade names, copyrights or
trade secrets or other proprietary rights of any other person or entity, except where the
failure to have the same would not reasonably be expected to have a Material Adverse Effect.

     (g) Compliance. Each Credit Party is in material compliance with all
applicable United States, state and foreign statutes, laws, regulations and executive
orders, and other United States, state and foreign governmental bodies and agencies having
jurisdiction over its business or properties, including without limitation, laws and
regulations relating to lending and servicing of loans, environmental and occupational
health and safety laws, and no Credit Party has received notice of any violation of such
statutes, laws, regulations or orders which has not been remedied prior to the date hereof,
and is not aware of any acts that could cause such notice or claim, and, to the best of

6

 

Borrower’s knowledge, no material expenditures are or will be required in order to
comply with any such existing statute, law or regulation. No Credit Party is in violation
of or in default under any provision of its organizational documents, as in effect
immediately prior to the Closing. No Credit Party is in default of any obligation for
borrowed money, any purchase money obligation or any other lease, commitment, contract,
instrument or obligation having or relating to an aggregate principal amount (or, in the
case of any lease or contract, an aggregate payment amount) in excess of $10,000 (either
individually or in the aggregate). The execution, delivery and performance of and
compliance with this Loan Agreement and the other Loan Documents by the Credit Parties will
not result in any such violation, be in conflict with or constitute, with or without the
passage of time or giving of notice, a default under any such provision, require any consent
or waiver under any such provision (other than any consents or waivers that have been
obtained), or result in the creation of any lien, encumbrance or charge upon any of the
properties or assets of any Credit Party pursuant to any such provision (other than the
security interest and lien created by the Security Agreement or otherwise under any of the
Loan Documents).

     (h) Permits. Each Credit Party has all franchises, permits, licenses, and any
similar authority necessary for the conduct of its business as now being conducted by it,
the lack of which would reasonably be expected to have a Material Adverse Effect. No Credit
Party is in default in any material respect under any of such franchises, permits, licenses,
or other similar authority.

     (i) Title to Property and Assets. Each Credit Party has good and defensible
title to the Collateral (as defined in the Security Agreement) owned by it, free and clear
of all liens, charges and encumbrances, except for (A) liens for current taxes and
assessments not yet due, (B) possible minor liens and encumbrances that do not, in any case,
materially detract from the value of the property subject thereto or materially impair the
operations of Borrower, (C) liens granted pursuant to the Warehouse Facility, which liens
will be released at the Closing of the Term Loan; and (D) liens granted to Lender pursuant
to the Senior Secured Loan Agreement and the Security Agreement, each dated September 11,
2007, between Borrower and Lender relating to the loan of $15,000,000 from Lender to
Borrower (the “2007 Facility”) (collectively, “Permitted Liens”). Each
Credit Party is in material compliance with all leases to which it is a party and, to the
best of Borrower’s knowledge, holds a valid leasehold interest free of all liens, charges or
encumbrances, except for such liens, charges or encumbrances that would not materially
impair the operations of such Credit Party.

     (j) Debt. Except for the Term Loan, the 2007 Facility, and the Warehouse
Facility (which will be paid in full at Closing), no Credit Party has incurred any
Indebtedness (as defined in Section 7(b)) nor has it guaranteed the Indebtedness of any
third party.

     (k) Tax Matters. Each Credit Party has prepared and filed all United States
federal, state and local income or franchise tax returns, if any, required to be filed by it
or has timely filed for extensions thereof, and has paid, or made provision for the payment

7

 

of, all taxes owed by it except to the extent contested in good faith by such Credit
Party and for which adequate reserves are established and maintained, and no tax
deficiencies have been assessed or, to Borrower’s knowledge, proposed against any Credit
Party. Commencing with its taxable year ended December 31, 2003, Issuer has continuously
qualified to be taxed as a real estate investment trust pursuant to Sections 856 through 860
of the Internal Revenue Code of 1986, as amended (the “Code”) and the Issuer’s
present and contemplated organization, ownership, method of operation, assets, and income
will enable it to so qualify for the taxable year ending December 31, 2008 and thereafter.

     (l) Brokers or Finders. No Credit Party has agreed to incur, directly or
indirectly, any liability for brokerage or finders’ fees, investment banker fees, agents’
commissions or other similar charges in connection with this Loan Agreement or any of the
transactions contemplated hereby.

     (m) No Subordination. Except as may be contemplated by the 2007 Facility or
the Warehouse Facility (which will be terminated at the closing of the Term Loan), there is
no agreement, indenture, contract or instrument to which any Credit Party is a party or by
which such Credit Party may be bound that requires the subordination in right of payment of
Borrower’s obligations under the Note to any other obligation of Borrower or any other
Credit Party.

     (n) No Material Adverse Changes. Since December 31, 2007, other than as
contemplated by this Loan Agreement or as disclosed in a report on Form 8-K filed by the
Securities and Exchange Commission by Issuer, there has not been any change in the assets,
liabilities, financial condition or operating results of any Credit Party from that
reflected in the Financial Statements, except changes in the ordinary course of business
that would not, either individually or in the aggregate, be reasonably likely to result in a
Material Adverse Effect on the assets, properties, condition (financial or other), affairs
or prospects of any Credit Party. Borrower has no knowledge of any material liabilities of
any nature not disclosed in writing to Lender.

     (o) Labor Agreements and Actions. Each Credit Party has complied in all
material respects with all applicable state and federal equal employment opportunity and
other laws related to employment (including without limitation, provisions thereof relating
to wages, hours, equal opportunity, collective bargaining and the payment of social security
and other taxes), and no Credit Party is aware that it has any labor relations problems
(including without limitation, any union organization activities, threatened or actual
strikes or work stoppages or material grievances). No Credit Party is bound by or subject
to (and none of its assets or properties is bound by or subject to) any written or oral,
express or implied, contract, commitment or arrangement with any labor union.

     (p) ERISA. Borrower has no knowledge that any employee benefit plan to which
any Credit Party has or may have liability (each, a “Plan”) is in noncompliance in
any material respect with the applicable provisions of the Employee Retirement Income

8

 

Security Act of 1974, as amended (“ERISA”) or the Internal Revenue Code.
Borrower has no knowledge of any pending or threatened litigation or governmental proceeding
or investigation against or relating to any Plan. Borrower has no knowledge of any
reasonable basis for any material proceedings, claims or actions against or relating to any
Plan. Borrower has no knowledge that any Credit Party has incurred any “accumulated funding
deficiency” within the meaning of Section 302(a)(2) of ERISA in connection with any Plan.
Borrower has no knowledge that there has been any Reportable Event or Prohibited Transaction
(as such terms are defined in ERISA) with respect to any Plan or has incurred any liability
to the Pension Benefit Guaranty Corporation (“PBGC”) under Section 4062 of ERISA in
connection with any Plan.

     (q) Investment Company. Borrower is not, and, after giving effect to the Term
Loan and the issuance of the Note, will not be, an “investment company” or an entity
“controlled” by an “investment company,” as such terms are defined in the Investment Company
Act of 1940, as amended.

     (r) Use of Proceeds; Margin Stock. No part of the proceeds of the Term Loan
will be used, directly or indirectly, for the purpose of purchasing or carrying any margin
stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve
System or to extend credit to others for the purpose of purchasing or carrying any such
margin stock.

     (s) Solvency. The Credit Parties, taken as a whole, and after taking into
account the transactions contemplated by this Loan Agreement and the other Loan Documents,
are able to pay their debts as they become due in the ordinary course of business and have
sufficient capital to carry on their businesses in accordance with their respective business
plans from time to time (provided that any changes to any business plan after the Closing
shall be reasonably acceptable to Lender); in this regard Lender acknowledges that Borrower,
Issuer and their affiliates are contemplating the possible sale or other disposition of
various assets and/or business operations. The amount that will be required to pay each
Credit Party’s probable liabilities as they become absolute and mature in the ordinary
course of business is less than the sum of the present fair sale value of its assets valued
on a going concern basis.

     6. Affirmative Covenants of Borrower. Borrower agrees with Lender that, until the
Term Loan and all other Obligations have been paid in full:

     (a) Punctual Payments. Borrower shall punctually pay all principal, interest,
fees or other liabilities due under any of the Loan Documents at the times and place and in
the manner specified therein (subject to any grace periods, if applicable).

     (b) Accounting Records. Each Credit Party shall maintain accurate books and
records in accordance with generally accepted accounting principles, consistently applied,
and permit any representative of Lender, upon advance request and at any reasonable time
during normal business hours to inspect, audit and examine such books

9

 

and records, to make copies of the same, and to inspect the properties of each Credit
Party.

     (c) Existence. Each Credit Party shall maintain its corporate or limited
liability existence.

     (d) Compliance. Each Credit Party shall preserve and maintain all licenses,
permits, governmental approvals, rights, privileges and franchises necessary for the conduct
of its business in accordance with its business plan from time to time (provided that any
changes to any business plan after the Closing shall be reasonably acceptable to Lender); in
this regard Lender acknowledges that Borrower, Issuer and their affiliates are contemplating
the possible sale or other disposition of various assets and/or business operations. Each
Credit Party shall comply with the provisions of all material contracts and agreements to
which such Credit Party is a party and all documents pursuant to which such Credit Party is
organized and/or which govern such Credit Party’s continued existence and with the material
requirements of all laws, rules, regulations and orders of any governmental authority
applicable to such Credit Party and/or its business.

     (e) Insurance. Each Credit Party shall maintain and keep in force insurance of
the types and in amounts customarily carried in lines of business similar to that of such
Credit Party, including but not limited to fire, extended coverage, public liability, flood,
property damage and workers’ compensation, and deliver to Lender from time to time at
Lender’s request schedules setting forth all insurance then in effect. Each insurance
policy described above shall name Lender as a lender’s loss payee, and shall require the
insurer to provide at least thirty (30) days’ prior written notice to Lender of any material
change or cancellation of such policy.

     (f) Facilities. Each Credit Party shall keep all properties useful or
necessary to such Credit Party’s business in good repair and condition, ordinary wear and
tear excepted, and from time to time make necessary repairs, renewals and replacements
thereto so that such properties shall be sufficient for the conduct of such Credit Party’s
business.

     (g) Taxes and Other Liabilities. Each Credit Party shall pay and discharge
when due any and all indebtedness, obligations, assessments and taxes, both real or
personal, including without limitation Federal and state income taxes and state and local
property taxes and assessments, except such Credit Party may in good faith contest or as to
which a bona fide dispute may arise through appropriate proceedings for which adequate
reserves have been provided on the books of such Credit Party.

     (h) Litigation. Borrower shall promptly give notice in writing to Lender of
any litigation pending, or to the knowledge of Borrower, threatened against any Credit Party
having or relating to any claim or claims in excess of $100,000 (either individually or in
the aggregate), other than any litigation pending or threatened which is covered in full by
insurance.

10

 

     (i) Notice to Lender. Borrower shall promptly (but in no event more than five
(5) days after the occurrence of each such event or matter) give written notice to Lender in
reasonable detail of: (i) the occurrence of any Event of Default, or any condition, event or
act which with the giving of notice or the passage of time or both would constitute an Event
of Default; (ii) any change in the name or the organizational structure of any Credit Party;
(iii) the occurrence and nature of any Reportable Event or Prohibited Transaction (each as
defined in ERISA) or any funding deficiency with respect to any employee pension benefit
plan (as defined in ERISA) or the institution by the PBGC or any Credit Party of proceedings
under Title V of ERISA to terminate any Plan; or (iv) any termination or cancellation of any
insurance policy which a Credit Party is required to maintain, or any uninsured or partially
uninsured loss through liability or property damage, or through fire, theft or any other
cause affecting any Credit Party’s property in excess of an aggregate of $50,000; (v) the
commencement of any litigation or administrative proceeding that would cause the
representation and warranty of any Credit Party contained in Section 5 of this Loan
Agreement to be untrue in any material respect; (vi) the commencement of any investigation,
litigation, or administrative or regulatory proceeding by, or the receipt of any notice,
citation, pleading, order, decree or similar document issued by, any federal, state or local
governmental agency or regulatory authority that results in, or would reasonably be expected
to result in, the termination or suspension of any license, permit or franchise necessary to
any Credit Party’s business as then conducted, or that imposes, or would reasonably be
expected to result in the imposition of, a material fine or penalty on any Credit Party.

     (j) Further Assurances. At any time or from time to time upon the request of
Lender, Borrower will, and will cause the other Credit Parties to, at their expense,
promptly execute, acknowledge and deliver such further documents and do such other acts and
things as Lender may reasonably request in order to effect fully the purposes of the Loan
Documents. In furtherance and not in limitation of the foregoing, Borrower shall, and shall
cause the other Credit Parties to, take such actions as Lender may request from time to time
to ensure that the Obligations are secured by the Collateral (as defined in the Security
Agreement).

     (k) Reporting Requirements. Borrower shall furnish to Lender such information
respecting the business, assets and financial condition of the Credit Parties and their
subsidiaries as Lender may reasonably request.

     7. Negative Covenants. Borrower agrees with Lender that, until the Term Loan and all
other Obligations have been paid in full, Borrower shall not, and Borrower shall not permit any
other Credit Party to, without the prior written consent of Lender:

     (a) Liens. Incur, create, assume or permit to be created or allow to exist any
lien upon or in any of its assets or properties, except Permitted Liens.

     (b) Indebtedness. Incur, create, assume, permit to exist, guarantee, endorse
or otherwise become directly or indirectly or contingently responsible or liable for any
Indebtedness other than in respect of this Loan Agreement, the 2007 Facility, the

11

 

Warehouse Facility (which shall be paid in full at the closing of the Term Loan) and
the Guaranty. As used herein, “Indebtedness” means all liabilities or obligations
of a Credit Party, whether primary or secondary or absolute or contingent: (a) for borrowed
money or for the deferred purchase price of property or services (excluding trade
obligations incurred in the ordinary course of business, which are not the result of any
borrowing or which are not more than 90 days past due); (b) as lessee under capital leases;
(c) evidenced by notes, bonds, debentures or similar obligations; (d) under any guaranty or
endorsement (other than in connection with the deposit and collection of checks in the
ordinary course of business), and other contingent obligations to purchase, provide funds
for payment, supply funds to invest in any Person (as defined below), or otherwise assure a
creditor against loss; (e) secured by any liens on assets of any Credit Party, whether or
not the obligations secured have been assumed by a Credit Party; or (f) any unsatisfied
obligation for “withdrawal liability” to a “multiemployer plan”, as such terms are defined
in ERISA. As used herein, “Person” means any individual, corporation, partnership,
trust, limited liability company, association or other entity.

     (c) Consolidation or Merger or Recapitalization. Consolidate with or merge
into any other Person, or permit another Person to merge into it, or acquire substantially
all of the assets or stock of any other Person, whether in one or a series of transactions,
except that Borrower may permit any of its wholly-owned subsidiaries to merge into it or
another wholly-owned subsidiary of Borrower, or liquidate, dissolve or effect a
recapitalization or reorganization in any form of transaction (including, without
limitation, any reorganization after which Borrower becomes a subsidiary of another Person).

     (d) Disposition of Assets. Sell, lease, assign, transfer or otherwise dispose
of any of its now owned or hereafter acquired assets or properties outside the ordinary
course of business.

     (e) Transactions with Affiliates. Engage in any transaction with an Affiliate
(as defined in the Warrant) or any immediately family member of any Affiliate, except for
transactions that are (i) with another Credit Party or made on terms no less favorable to
such Credit Party than it would obtain in a comparable arms length transaction from
unrelated third parties and (ii) made in the ordinary course of business consistent with
past practice.

     (f) Loans and Advances. Make any loan or advance to any Person, except: (a)
extensions of credit in the ordinary course of business by the Credit Parties to their
customers; and (b) advances to officers and employees of the Credit Parties for travel and
other expenses in the ordinary course of business.

     (g) Guarantees. Guarantee the Indebtedness of any Person except the Guaranty
and other guarantees in favor Lender.

     (h) Subsidiaries. Form any subsidiary other than those in existence as of the
date hereof.

12

 

     (i) Notes or Debt Securities Containing Equity Features. Authorize, issue or
enter into any agreement providing for the issuance (contingent or otherwise) of any notes
or debt securities containing equity features (including, without limitation, any notes or
debt securities convertible into or exchangeable for capital stock or other equity
securities, issued in connection with the issuance of capital stock or other equity
securities or containing profit participation features).

     (j) Other Agreements. Enter into, become subject to, amend, modify or waive,
or permit any of its subsidiaries to enter into, become subject to, amend, modify or waive,
any agreement or instrument which by its terms would (under any circumstances) restrict
(i) the right of any Credit Party or any of its subsidiaries to make loans or advances or
pay dividends to, transfer property to, or repay any Indebtedness owed to, Borrower, or
(ii) a Credit Party’s right to perform the provisions of any of the Loan Documents or
charter documents of such Credit Party.

     (k) REIT Status. Take or permit any other any other Credit Party to take any
action that would cause Issuer to lose its status as a Real Estate Investment Trust pursuant
to the Code.

     8. Confidentiality. Lender expressly acknowledges that it may receive in the future
Confidential Materials (as hereinafter defined), and that disclosure of such Confidential Materials
to parties not a party to this Loan Agreement would cause irreparable harm to Borrower. None of
Lender nor its Affiliates shall (a) disclose any Confidential Materials to any party not a party to
this Loan Agreement, or (b) use any Confidential Materials for any purpose except in connection
with the transactions contemplated by this Loan Agreement; provided, however, Lender may disclose
Confidential Information: (i) with the consent of Borrower; (ii) when required by law or
regulation; (iii)  to the agents, representatives and professional consultants of Lender who have a
need to know such information and agree, subject to the permissive disclosure provisions of this
Section 8, to maintain the confidentiality of such information; (v) in connection with the
preservation, exercise and/or enforcement of any of Lender’s rights or remedies under this
Agreement and the other Loan Documents; (vi) in connection with any contemplated transfer of this
Loan Agreement or the Note to any proposed transferee (so long as the recipient of such information
agrees to keep such information confidential on terms substantially similar to those set forth in
this Section 8); and (vii) in a response to any summons, subpoena or other legal process or
in connection with any judicial or administrative proceeding or inquiry. In the event that Lender
concludes that it is legally obligated to disclose any Confidential Materials, it shall provide
Borrower with prompt written notice sufficient to give Borrower a reasonable opportunity to seek to
prevent or limit the disclosure of such Confidential Materials. In the case of legal proceedings in
which such disclosure is required, Lender shall reasonably cooperate with Borrower to obtain an
appropriate protective order limiting the disclosure of such material, at Borrower’s expense.

     “Confidential Materials” means any information or materials, whether written or oral,
tangible or intangible, concerning Borrower, its subsidiaries, businesses, markets, products,
prospects, finances, principal stockholders and/or members. Notwithstanding the foregoing,
Confidential Materials shall not include (A) information that is or becomes generally known to

13

 

the public at large other than as a result of a breach of this Loan Agreement by Lender or its
Affiliates; (B) information acquired by Lender independently from a third party (other than a third
party which Lender knows, or has reason to know, is under an obligation of confidentiality with
respect to such information); and (C) information independently developed by Lender and not as a
result of the disclosure of information or provision of materials by Borrower. The Confidential
Materials may include, but are not necessarily limited to, the following: data; documentation;
research and development; advertising plans; distribution networks; new product or service
concepts; processes; marketing procedures; “know-how”; marketing techniques and materials;
development plans; names and other information related to strategic partners, suppliers, or
vendors; pricing policies and strategic, business or financial information, including business
plans and financial pro formas.

     9. Events of Default. Each of the following shall constitute an “Event of
Default” under this Loan Agreement:

     (a) The occurrence of an Event of Default under, and as defined in, the Security
Agreement or any of the 2007 Facility Documents;

     (b) Failure of Borrower to pay (i) when due principal of the Term Loan, whether at
stated maturity, by acceleration or otherwise; or (ii) any installment of interest on the
Term Loan or any fees and expenses due hereunder within 3 business days after the date due;

     (c) Failure of any Credit Party to perform or comply with any term or condition
contained in Section 7 hereof;

     (d) The failure of any Credit Party to timely and properly observe, keep or perform any
covenant, agreement, representation, warranty or condition contained herein (other than
those covered in sub-sections (a) through (c) of this Section 9) or in any of the other Loan
Documents (other than the Pledge Agreements) and such failure is not cured within ten (10)
days after such Credit Party becomes aware or should have become aware of such default.

     (e) The bankruptcy or insolvency of, the assignment for the benefit of creditors by, or
the appointment of a receiver for any of the property of, or the liquidation, termination,
dissolution or death or legal incapacity of, any party liable for the Obligations, whether
as maker, endorser, guarantor, surety or otherwise; provided, however, that any involuntary
bankruptcy proceeding shall not be an Event of Default unless and until such proceeding
shall remain undismissed and unstayed for a period of sixty (60) days;

     (f) Any representation, warranty, certification or other statement made by Credit Party
in any Loan Document or in any statement or certificate at any time given by any Credit
Party in writing pursuant hereto or thereto or in connection herewith or therewith shall be
false in any material respect as of the date made or deemed made;

14

 

     (g) The failure by Issuer, Borrower, OSC or OSI to timely and properly observe, keep or
perform any covenant, agreement or condition contained in the Pledge Agreements;

     (h) (i) any Reportable Event (as defined in ERISA) shall have occurred which
constitutes grounds for the termination of any Plan by the PBGC or for the appointment of a
trustee to administer any Plan, or any Plan shall be terminated within the meaning of Title
IV of ERISA, or a trustee shall be appointed by the appropriate court to administer any
Plan, or the PBGC shall institute proceedings to terminate any Plan or to appoint a trustee
to administer any Plan, or any Credit Party or any trade or business which together with any
Credit Party would be treated as a single employer under Section 4001 of ERISA shall
withdraw in whole or in part from a multiemployer Plan, and (ii) the aggregate amount of any
Credit Party’s liability for all such occurrences, whether to a Plan, the PBGC or otherwise,
may exceed $100,000;

     (i) Except if such money judgment, writ or warrant is appealable and so long as such
Credit Party is contesting and appealing such money judgment, writ or warrant in good faith,
if any money judgment, writ or warrant of attachment or similar process involving (i) in any
individual case an amount in excess of $100,000 or (ii) in the aggregate at any time an
amount in excess of $250,000 (in either case to the extent not adequately covered by
insurance as to which a solvent and unaffiliated insurance company has acknowledged
coverage) shall be entered or filed against Borrower or any of its assets and shall remain
undischarged, unvacated, unbonded or unstayed for a period of sixty (60) days (or in any
event later than five days prior to the date of any proposed sale thereunder); or

     (j) At any time after the execution and delivery thereof, (i) this Loan Agreement or
any Loan Document ceases to be in full force and effect (other than by reason of a release
of Collateral in accordance with the terms hereof or thereof or the satisfaction in full of
the Term Loan in accordance with the terms hereof) or shall be declared null and void, or
Lender shall not have or shall cease to have a valid and perfected Lien in any Collateral
purported to be covered by the Loan Documents with the priority required by the relevant
Loan Document, in each case for any reason other than the failure of Lender or any Secured
Party to take any action within its control, or (ii) any Credit Party shall contest the
validity or enforceability of any Loan Document in writing or deny in writing that it has
any further liability under any Loan Document to which it is a party.

     10. Remedies. Upon the occurrence of any Event of Default, Lender may, at its option,
without further notice or demand, (i) declare the outstanding principal balance of and accrued but
unpaid interest on the Note and all other Obligations at once due and payable (provided, however,
upon the occurrence of any Event of Default described in Section 8(e) above, then all outstanding
principal and accrued but unpaid interest under the Note shall immediately become due and payable
together with all other amounts payable under the Loan Documents without presentment, demand,
protest or notice of any kind), (ii) foreclose all liens securing payment hereof, (iii) pursue any
and all other rights, remedies and recourses available to

15

 

Lender hereof, including but not limited to any such rights, remedies or recourses under the
Loan Documents, at law or in equity, or (iv) pursue any combination of the foregoing. So long as
an Event of Default has occurred and is continuing, the unpaid principal balance of the Note shall
continue to bear interest at the Default Rate, as set forth in the Note. The acceptance by Lender
of any payment under the Note which is less than the payment in full of all amounts due and payable
at the time of such payment shall not (i) constitute a waiver of or impair, reduce, release or
extinguish any right, remedy or recourse of the holder hereof, or nullify any prior exercise of any
such right, remedy or recourse, or (ii) impair, reduce, release or extinguish the obligations of
any party liable under any of the Loan Documents as originally provided herein or therein.

     11.  Indemnification. Borrower agrees to indemnify, defend and hold Lender harmless
from and against all loss, liability, damage and expense that may be imposed on, incurred by or
asserted against Lender and it agents in any matter relating to or arising out of, in connection
with or as a result of this Loan Agreement, any other Loan Document or any other act, event or
transaction related, contemplated in or attendant to any such document, or, in each case, any
action taken or omitted to be taken by Lender under or with respect to any of the foregoing
(collectively, the “Indemnified Liabilities”), provided, that Borrower shall not be
liable for any payment to any such Person of any portion of the Indemnified Liabilities to the
extent resulting from such Person’s gross negligence or willful misconduct. The undertaking in this
Section shall survive repayment of the Note and the termination of this Loan Agreement.

     12. Costs and Expenses. Borrower shall pay all fees and expenses incurred by Lender,
including the reasonable documented fees of counsel in connection with the preparation, issuance,
maintenance and amendment of this Loan Agreement and the other Loan Documents and the consummation
of the transactions contemplated by this Loan Agreement and the other Loan Documents, and the
administration, protection and enforcement of Lender’s rights under this Loan Agreement and the
other Loan Documents, or with respect to the Collateral, including without limitation the
protection and enforcement of such rights in any bankruptcy, reorganization or insolvency
proceeding involving Borrower or any other Credit Party, both before and after judgment. Borrower
further agrees to pay on demand all audit fees and accountants’ reasonable fees incurred by Lender
in connection with the maintenance and enforcement of this Loan Agreement, the other Loan Documents
or any other collateral security.

     13. Rights Cumulative. All rights of Lender under the terms of this Loan Agreement
shall be cumulative of, and in addition to, the rights of Lender under any and all other agreements
between Borrower and Lender and any other Credit Party and Lender (in each case, including, but not
limited to, the other Loan Documents), and not in substitution or diminution of any rights now or
hereafter held by Lender under the terms of any other agreement.

     14. Waiver and Amendment. Neither the failure nor any delay on the part of Lender to
exercise any right, power or privilege herein or under any of the other Loan Documents shall
operate as a waiver thereof, nor shall any single or partial exercise of such right, power or
privilege preclude any other or further exercise thereof or the exercise of any other right, power
or privilege. No provision of this Loan Agreement may be waived, amended or modified except
pursuant to an agreement in writing entered into by Borrower and Lender.

16

 

     15. Successors and Assigns. This Loan Agreement shall be binding upon and inure to
the benefit of Lender and Borrower, and their respective successors and assigns, provided, however,
that Borrower may not, without the prior written consent of Lender, assign any rights, powers,
duties or obligations under this Loan Agreement or any of the other Loan Documents.

     16. Notices. All notices, requests, demands and other communications required or
permitted hereunder shall be in writing, and shall be deemed to be given or delivered when actually
received by the party to whom directed, or, if earlier and regardless of whether actually received,
on the third day after deposit in a regularly maintained receptacle for the United States mail,
registered or certified, postage fully prepaid, addressed to the party to whom directed at its
address set forth below or at such other address as such party may have previously specified by
notice actually received by the other party, or by fax transmission with a confirmation of receipt
generated by the sender’s facsimile machine:

	 	 	 
	If to Borrower:

	 	Origen Financial L.L.C.
	 

	 	27777 Franklin Road
	 

	 	Suite 1700
	 

	 	Southfield, Michigan 48034
	 

	 	Attention: Ronald A. Klein
	 
	 	 
	 

	 	Fax No.: (248) 746-7094
	 

	 	Phone No.: (248) 746-7000
	 
	 	 
	With a copy to:

	 	Origen Financial, Inc.
	 

	 	27777 Franklin Road
	 

	 	Suite 1700
	 

	 	Southfield, Michigan 48034
	 

	 	Attention: Ronald A. Klein
	 
	 	 
	 

	 	Fax No.: (248) 746-7094
	 

	 	Phone No.: (248) 746-7000
	 
	 	 
	With a copy to:

	 	Jaffe, Raitt, Heuer & Weiss, PC
	 

	 	27777 Franklin Road
	 

	 	Suite 2500
	 

	 	Southfield, Michigan 48034
	 

	 	Attention: Peter Sugar
	 
	 	 
	 

	 	Fax. No.: (248) 351-3082
	 

	 	Phone No.: (248) 351-3000
	 
	 	 
	If to Lender:

	 	William M. Davidson Trust u/a/d 12/13/04
	 

	 	2300 Harmon Road
	 

	 	Auburn Hills, Michigan 48326
	 

	 	Attention: Jonathan S. Aaron
	 
	 	 
	 

	 	Fax No.: (248) 340-2308
	 

	 	Phone No.: (248) 340-2396

17

 

	 	 	 
	With a copy to:

	 	Honigman Miller Schwartz and Cohn LLP
	 

	 	2290 First National Building
	 

	 	660 Woodward Avenue
	 

	 	Detroit, Michigan 48226
	 

	 	Attention: Norman H. Beitner
	 
	 	 
	 

	 	Fax No: (313) 465-7321
	 

	 	Phone Number: (313) 465-7320

     17. Governing Law. This Loan Agreement and the other Loan Documents shall be governed
by and construed in accordance with the laws of the State of Michigan, except to the extent
perfection and the effect of perfection or non-perfection of any security interest granted under
the Loan Documents, in respect of any particular Collateral, are governed by the laws of a
jurisdiction other than the State of Michigan. As a material inducement to Lender to enter into
this Loan Agreement, Borrower agrees that all actions or proceedings in any manner relating to or
arising out of this Loan Agreement may be brought only in the courts of the State of Michigan
located in Oakland County or the Federal Court for the Eastern District of Michigan, and Borrower
consents to the jurisdiction of such courts. Borrower waives any objection it may nor or hereafter
have to the venue of any such court and any right it may have now or hereafter have to claim that
any such action or proceeding is in an inconvenient court.

     18. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS LOAN AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS LOAN AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

     19. Severability. If any provision of this Loan Agreement or any of the other Loan
Documents is held to be illegal, invalid or unenforceable under present or future laws, such
provision shall be fully severable and the remaining provisions of this Loan Agreement or any of
the other Loan Documents shall remain in full force and effect and shall not be affected by the
illegal, invalid or unenforceable provision or by its severance.

18

 

     20. Counterparts. This Loan Agreement may be separately executed in any number of
counterparts, each of which shall be an original, but all of which, taken together, shall be deemed
to constitute one and the same instrument.

     21. Facsimile Documents, Electronic Documents and Signatures. For purposes of
finalizing this Loan Agreement or any of the other Loan Documents, if this document or any document
executed in connection with it is transmitted by facsimile or other electronic transmission, it
shall be treated for all purposes as an original document. Additionally, the signature of any
party on this document transmitted by way of a facsimile machine or other electronic communication
shall be considered for all purposes as an original signature. Any such faxed document or
electronic document shall be considered to have the same binding legal effect as an original
document. At the request of any party, any faxed document or electronic document shall be
re-executed by each signatory party in an original form.

     22. NO ORAL AGREEMENTS. THIS LOAN AGREEMENT, THE NOTE, AND THE OTHER LOAN DOCUMENTS
REFERRED TO HEREIN REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[Signatures contained on following page]

19

 

     IN WITNESS WHEREOF, the parties have executed this Senior Secured Loan Agreement as of the
date first written above.

	 	 	 	 	 
	BORROWER:

	 	LENDER:
	 
	 	 
	ORIGEN FINANCIAL, L.L.C.

	 	WILLIAM M. DAVIDSON TRUST U/A/D
	 	 

	 	12/13/04
	 
	 	 
	By:	  /s/ Ronald A. Klein

	 	By:	  /s/ William M. Davidson
	 	 

	 	 	 
	Name: Ronald Klein

	 	Name: William M. Davidson
	Name: Chief Executive Officer

	 	Title: Trustee
	 
	 	 
	Acknowledged by:
	 	 	 
	ISSUER:
	 	 	 
	 
	ORIGEN FINANCIAL, INC.
	 	 	 
	 
	 	 
	By:	 /s/ Ronald A. Klein
	 	 	 
	 
	 	 	 
	Name: Ronald Klein
	 	 
	Title: Chief Executive Officer
	 	 

20exv10w2

 

Exhibit 10.2

SENIOR SECURED PROMISSORY NOTE

			
	$46,000,000
	 	April 8, 2008

     FOR VALUE RECEIVED, on or before April 8, 2011, subject to an Extension (as defined below)
(the “Maturity Date”), Origen Financial L.L.C., a Delaware limited liability company
(“Borrower”), promises to pay to the order of the William M. Davidson Trust u/a/d 12/13/04
(“Lender”) at 2300 Harmon Road, Auburn Hills, Michigan 48326, the principal amount of FORTY
SIX MILLION AND NO/100 DOLLARS ($46,000,000) (“Total Principal Amount”), or such amount
less than the Total Principal Amount which is outstanding from time to time if the total amount
outstanding under this Senior Secured Promissory Note (“Note”) is less than the Total
Principal Amount, together with accrued but unpaid interest thereon as provided below. The
Maturity Date may be extended by Borrower for one, one-year period (the “Extension”) upon
prior written notice to Lender and payment by Borrower to Lender of a fee in an amount equal to
2.0% of the outstanding unpaid principal balance owing under this Note as of the date of the
Extension. Interest on the unpaid principal balance hereof from time to time outstanding shall
accrue for the period from and including the date hereof, to but excluding the date this Note is
paid in full, at the fixed rate per annum equal to fourteen and one-half percent (14.5%),
calculated on the basis of actual days elapsed in a year of 365 days. Borrower shall pay such
interest, unless earlier payment is required hereunder, in cash in arrears on the last day of each
calendar month period during which this Note remains outstanding (each an “Interest Payment
Date”) with the first Interest Payment Date occurring on April 30, 2008.

     If an Event of Default (as defined below) occurs or if this Note is not paid when due by
maturity, acceleration or otherwise, then notwithstanding the above, interest shall be payable
thereafter at the rate which is six percent (6%) per annum in excess of the rate described above
(the “Default Rate”). In no event shall the aggregate interest rate payable under this
Note exceed the Maximum Rate. The term “Maximum Rate,” as used herein, shall mean at the
particular time in question the maximum rate of interest, which, under applicable law, may then be
charged on this Note.

     The principal of, all accrued but unpaid interest and all unpaid costs and expenses incurred
pursuant to this Note shall be due and payable in full on the Maturity Date.

     Borrower may prepay all or any portion of the principal of this Note at any time without
payment of any premium or penalty, except as provided below, upon at least thirty (30) days prior
written notice to Lender. Notwithstanding the foregoing, in the event Borrower prepays the entire
principal balance of this Note with the proceeds of a refinancing of the indebtedness evidenced
hereby, Borrower shall pay Lender a termination fee equal to 1.50% multiplied by the principal
balance so refinanced and prepaid. Unless otherwise agreed to in writing, or otherwise required by
applicable law, payments will be applied first to all costs, expenses, indemnities and other
amounts payable hereunder and under the other Loan Documents (as defined below), then to payment of
any default interest, then to the unpaid accrued interest and any remaining amount to principal.
All payments of principal of or interest on this Note shall be made in lawful money

 

 

of the United States of America in immediately available funds, at the address of Lender
indicated above, or such other place as the holder of this Note shall designate in writing to
Borrower. If any payment of principal of or interest on this Note shall become due on a day which
is not a Business Day (as hereinafter defined), such payment shall be made on the next succeeding
Business Day and any such extension of time shall be included in computing interest in connection
with such payment. As used herein, the term “Business Day” shall mean any day other than a
Saturday, Sunday or any other day on which national banking associations are authorized to be
closed. The books and records of Lender shall be prima facie evidence of all
outstanding principal of and accrued and unpaid interest on this Note.

     This Note is issued by Borrower pursuant to the provisions of the Senior Secured Loan
Agreement of even date herewith (the “Loan Agreement”) by and between Borrower and Lender.
Payment of this Note is secured by a Security Agreement, Pledge Agreements and a Guaranty (each as
defined in the Loan Agreement). All capitalized terms used but not defined herein have the
meanings ascribed to them in the Loan Agreement.

     This Note, the Loan Agreement, the Security Agreement, the Pledge Agreements, the Guaranty,
the Registration Rights Agreement (as defined in the Loan Agreement) and the Warrant (as defined in
the Loan Agreement) and all other documents evidencing, securing, governing, guaranteeing and/or
pertaining to this Note, are hereinafter collectively referred to as the “Loan Documents.”
Lender is entitled to the benefits and security provided in the Loan Documents.

     Borrower agrees that all advances hereunder shall be used solely for proper corporate
purposes, including for working capital of Borrower.

     Borrower agrees that upon the occurrence of an Event of Default (as defined in the Loan
Agreement), Lender shall have the remedies set forth herein and in the Loan Agreement.

     This Note and all of the other Loan Documents are intended to be performed in accordance with,
and only to the extent permitted by, all applicable usury laws. If any provision hereof or of any
of the other Loan Documents or the application thereof to any person or circumstance shall, for any
reason and to any extent, be invalid or unenforceable, neither the application of such provision to
any other person or circumstance nor the remainder of the instrument in which such provision is
contained shall be affected thereby and shall be enforced to the greatest extent permitted by law.
It is expressly stipulated and agreed to be the intent of the holder hereof to at all times comply
with the usury and other applicable laws now or hereafter governing the interest payable on the
indebtedness evidenced by this Note. If the applicable law is ever revised, repealed or judicially
interpreted so as to render usurious any amount called for under this Note or under any of the
other Loan Documents, or contracted for, charged, taken, reserved or received with respect to the
indebtedness evidenced by this Note, or if Lender’s exercise of the option to accelerate the
maturity of this Note, or if any prepayment by Borrower results in Borrower having paid any
interest in excess of that permitted by law, then it is the express intent of Borrower and Lender
that all excess amounts theretofore collected by Lender be credited on the principal balance of
this Note (or, if this Note and all other indebtedness arising under or pursuant to the other Loan
Documents have been paid in full,

2

 

refunded to Borrower), and the provisions of this Note and the other Loan Documents
immediately be deemed reformed and the amounts thereafter collectable hereunder and thereunder
reduced, without the necessity of the execution of any new document, so as to comply with the then
applicable law, but so as to permit the recovery of the fullest amount otherwise called for
hereunder or thereunder. All sums paid, or agreed to be paid, by Borrower for the use,
forbearance, detention, taking, charging, receiving or reserving of the indebtedness of Borrower to
Lender under this Note or arising under or pursuant to the other Loan Documents shall, to the
maximum extent permitted by applicable law, be amortized, prorated, allocated and spread throughout
the full term of such indebtedness until payment in full so that the rate or amount of interest on
account of such indebtedness does not exceed the usury ceiling from time to time in effect and
applicable to such indebtedness for so long as such indebtedness is outstanding. To the extent
federal law permits Lender to contract for, charge or receive a greater amount of interest, Lender
will rely on federal law instead of Michigan law, for the purpose of determining the Maximum Rate.
Additionally, to the maximum extent permitted by applicable law now or hereafter in effect, Lender
may, at its option and from time to time, implement any other method of computing the Maximum Rate
under Michigan law, or under other applicable law, by giving notice, if required, to Borrower as
provided by applicable law now or hereafter in effect.

     If this Note is placed in the hands of an attorney for collection or if any holder of this
Note incurs any costs incident to the collection of the indebtedness evidenced by this Note, or is
collected in whole or in part by suit or through probate, bankruptcy or other legal proceedings of
any kind, Borrower agrees to pay, in addition to all other sums payable hereunder, all costs and
expenses of collection, including but not limited to reasonable attorneys’ fees and all costs and
expenses (including reasonable attorneys fees) incurred by Lender in connection with the protection
and enforcement of its rights hereunder.

     Borrower and any and all endorsers and guarantors of this Note severally waive presentment for
payment, notice of nonpayment, protest, demand, notice of protest, notice of intent to accelerate,
notice of acceleration and dishonor, diligence in enforcement and indulgences of every kind and
without further notice hereby agree to renewals, extensions, exchanges or releases of collateral,
taking of additional collateral, indulgences or partial payments, either before or after maturity.

     No failure to accelerate the indebtedness evidence hereby by reason of an Event of Default,
acceptance of past-due installment or other indulgences granted from time to time shall be
construed as a novation of this Note or as a waiver of such right of acceleration or the right of
Lender thereafter to insist upon strict compliance with the terms of this Note or to prevent the
exercise of such right of acceleration or any other right granted hereunder or by applicable law.
No extension of the time for payment of the indebtedness evidenced hereby or any installment due
hereunder, made by agreement with any person now or hereafter liable for payment of the
indebtedness evidenced hereby, shall operate to release, discharge, modify, change or affect the
original liability of Borrower hereunder or that of any other person now or hereafter liable for
payment of the indebtedness evidenced hereby, either in whole or in part, unless Lender agrees
otherwise in writing.

3

 

     This Note may not be changed orally, but only by an agreement in writing signed by the party
against whom enforcement of any waiver, change, modification or discharge is sought.

     THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MICHIGAN
AND THE APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

	 	 	 	 	 
	 

	ORIGEN FINANCIAL, L.L.C.	 	 
	 
	 	 	 	 
	 

	By:	  /s/ Ronald A. Klein

	 	 
	 

	Name: Ronald Klein	 	 
	 

	Title: Chief Executive Officer	 	 
	 
	 	 	 	 
	 

	Address for Notices:	 	 
	 
	 	 	 	 
	 

	 27777 Franklin Road	 	 
	 

	 Suite 1700	 	 
	 

	 Southfield, Michigan 48034	 	 
	 

	 Attention: Ronald A. Klein	 	 
	 
	 	 	 	 
	 

	 Fax No.: (248) 746-7094
	 	 
	 

	 Phone No.: (248) 746-7000	 	 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]