Document:

exv10w3

 

Exhibit 10.3

Execution Version

AMENDED AND RESTATED GUARANTY

     THIS AMENDED AND RESTATED GUARANTY (“Guaranty”) is made on April 8, 2008, by Origen
Servicing, Inc., a Delaware corporation, Origen Securitization Company, LLC, a Delaware limited
liability company, and Origen Financial, Inc., a Delaware corporation (“Guarantors”), in
favor of William M. Davidson Trust u/a/d 12/13/04 (“Lender”), to induce Lender to make
loans to Origen Financial L.L.C., a Delaware limited liability company (“Borrower”),
pursuant to (i) that certain Senior Secured Loan Agreement, of even date herewith between Borrower
and Lender, pursuant to which Lender has loaned $46,000,000 to Borrower, and (ii) that certain
Amended and Restated Senior Secured Loan Agreement of even date herewith between Borrower and
Lender, pursuant to which Lender has loaned an aggregate of $15,000,000 to Borrower (collectively,
the “Loan Agreements”), and because Guarantors have determined that executing and
delivering this Guaranty is in Guarantors’ interest and to Guarantors’ financial benefit. This
Guaranty amends and restates in its entirety the Guaranty dated September 11, 2007 (the
“Original Guaranty”) executed by Origen Servicing, Inc., and Origen Financial, Inc., in
favor of Lender. Accordingly, the Original Guaranty shall be of no further force or effect.

     GUARANTORS AGREE AS FOLLOWS:

     1. Guarantee. Until such time as the Indebtedness (as defined below) is irrevocably
paid-in-full, Guarantors jointly and severally guarantee to Lender the full and prompt payment when
due, whether by maturity or otherwise, of the Obligations (as defined in the Loan Agreements) and
any other indebtedness or obligations that may now exist or hereafter arise, including any and all
costs and expenses (including reasonable attorneys’ fees) incurred or paid by or on behalf of
Lender in enforcing its rights under this Guaranty (collectively, the “Indebtedness”).
Lender may have immediate recourse against Guarantors for full and immediate payment of the
Indebtedness at any time when the Indebtedness, or any portion, has not been paid when due (whether
by acceleration or otherwise), subject to applicable grace and cure periods. All payments by
Guarantors shall be made in lawful money of the United States of America and in immediately
available funds.

     2. Nature of Guarantee. This is a guarantee of payment and not of collection. At any
time when the Indebtedness, or any portion thereof, has not been paid when due (whether by
acceleration or otherwise), but subject to applicable grace and cure periods, Lender can require
that Guarantors pay Lender the amounts owing under this Guaranty immediately, and Lender is not
required to collect first from the Borrower, any collateral or any other person liable for the
Indebtedness. No delay or stay in any acceleration of the Indebtedness, as against the Borrower,
due to the application of any bankruptcy, insolvency or other law or proceeding shall be effective
under this Guaranty and Guarantors agrees to pay immediately any amount of the Indebtedness that
would be due and payable but for such delay or stay. Guarantors’ liability for payment of the
Indebtedness shall be a primary obligation and shall be absolute and unconditional. Guarantors
agree that none of the following acts, omissions or occurrences shall diminish or impair the
liability of Guarantors in any respect (all of which acts, omissions or occurrences may be done or
occur without notice to Guarantors):

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     (a) Any extension, modification, indulgence, compromise, settlement or variation of any of the
terms of the Indebtedness.

     (b) Any assignment or transfer of any interest in any of the Indebtedness.

     (c) The discharge or release of any obligations of the Borrower or any other person now or
hereafter liable on the Indebtedness, by reason of bankruptcy or insolvency laws or otherwise.

     (d) The acceptance or release by Lender of any collateral, security or other guaranty from a
Guarantor, the Borrower or any other person, or any settlement, compromise or extension with
respect to any such collateral, security or other guaranty.

     (e) The application or allocation by Lender of payments, collections or credits on the
Indebtedness.

     (f) The creation of any new Indebtedness by the Borrower.

     (g) The making of a demand, or absence of demand, for payment of the Indebtedness, or giving,
or failing to give, any notice of dishonor, protest, presentment or non-payment or any other
notice.

     (h) Any failure, omission or delay on the part of the Borrower, Guarantors or any other person
now or hereafter liable on the Indebtedness, or anyone claiming by or through any of them, to
comply with any instrument or agreement relating to any of the Indebtedness.

     (i) To the extent permitted by law, any release or discharge, by operation of law, of
Guarantors from the performance or observance of any obligation, covenant or agreement contained in
this Guaranty.

     (j) Any merger or consolidation of the Borrower, Guarantors or any other person now or
hereafter liable on the Indebtedness, into or with any other corporation or other entity, or any
sale, lease or transfer of any of the assets of the Borrower or Guarantors to any other person or
entity.

     (k) Any other occurrence or circumstance which might otherwise constitute a legal or equitable
defense or discharge of the liabilities of a guarantor or surety or which might otherwise limit
recourse against Guarantors.

     3. Waivers. Without limiting the generality of the foregoing, Guarantors
unconditionally waive (a) any right of subrogation to the rights of Lender against the Borrower
until such time as the Indebtedness is fully paid; (b) Lender’s acceptance of this Guaranty; (c)
any set-offs or counterclaims against Lender which would otherwise impair Lender’s rights against
Guarantors; (d) any demand or notice of any action that Lender takes regarding the Borrower, anyone
else, any collateral, or any Indebtedness, which Guarantors might be entitled to by law or under
any other agreement; (e) notice of Lender obtaining, amending, substituting for, releasing, waiving
or modifying any security interest, lien or encumbrance, if any, hereafter securing the
Indebtedness or Lender subordinating, compromising, discharging or releasing any security
interests, liens or encumbrances; and (f) demand for payment under this Guaranty.

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     4. Primary Liability of Guarantors. Each Guarantor agrees that this Guaranty may be
enforced by Lender without the necessity at any time of resorting to or exhausting any other
security or collateral and without the necessity at any time of having recourse to the collateral
securing the Indebtedness or otherwise and such Guarantor hereby waives the right to require Lender
to proceed against Borrower or any other person (including a co-guarantor) or to require Lender to
pursue any other remedy or enforce any other right. Each Guarantor further agrees that it shall
have no right of subrogation, indemnity, reimbursement or contribution against Borrower or any
other guarantor of the Indebtedness for amounts paid under this Guaranty until such time as the
Indebtedness has been irrevocably paid in full.

     5. Reinstatement. This Guaranty, and any agreement securing this Guaranty, shall
continue to be effective, or shall be automatically reinstated, as the case may be, if at any time
payment of all or any part of the Indebtedness is rescinded or must otherwise be restored or
returned by Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of
the Borrower, or upon, or as a result of, the appointment of a custodian, receiver, trustee or
other officer with similar powers with respect to the Borrower or any substantial part of the
Borrower’s property, or for any other reason, all as though such payments had not been made.

     6. Representations and Warranties. Each Guarantor represents and warrants to Lender
(i) that it has the full power and authority to enter into this Guaranty and to perform the
transactions contemplated herein, (ii) that this Guaranty is binding upon and enforceable against
it, in accordance with its terms, and (iii) neither the execution and delivery of this Agreement,
nor the consummation of the transactions contemplated hereby, will (a) violate any constitution,
statute, regulation, rule, injunction, order, decree, ruling, charge or other restriction of any
government, governmental agency or court to which such Guarantor is subject, or (b) conflict with,
result in a breach of, constitute a default under, result in the acceleration of, or create in any
party the right to accelerate, terminate, modify, or cancel any agreement, contract, instrument or
other arrangement to which such Guarantor is a party.

     7. Attorneys’ Fees and Costs of Collection. If at any time or times hereafter Lender
employs counsel to pursue collection, to intervene, or to sue for enforcement of this Guaranty, or
to file a petition, complaint, answer, motion or other pleading in any suit or proceeding relating
to this Guaranty, then in such event and until paid, all reasonable attorneys’ fees relating
thereto shall be an additional liability of the Guarantors to Lender, payable on demand.

     8. Cumulative Rights. All rights of Lender hereunder or otherwise arising under any
documents executed in connection with or as security for the Indebtedness are separate and
cumulative and may be pursued separately, successively or concurrently, or not pursued, without
affecting or limiting any other right of Lender and without affecting or impairing the liability of
the Guarantors.

     9. Miscellaneous.

     (a) This Guaranty shall be construed in accordance with the laws of the State of Michigan,
without regard to principles of the conflicts of law that would require the application of the laws
of another state.

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     (b) This Guaranty shall be binding upon the heirs, successors and assigns of Guarantors, and
the rights and privileges of Lender under this Guaranty shall inure to the benefit of its
successors and assigns.

     (c) Any amendment of this Guaranty shall be in writing and shall require the signature of
Guarantors and Lender. Any waiver or consent to departure from compliance with this Guaranty must
be in writing and signed by Lender.

     (d) The invalidity or unenforceability of any provision of this Guaranty shall not affect the
validity or enforceability of the remaining provisions of this Guaranty. The use of headings does
not limit the terms of this Guaranty.

     (e) Neither this Guaranty, nor the rights and obligations of any Guarantor may be assigned or
delegated without the prior written consent of Lender.

     (f) GUARANTORS AND LENDER ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE,
BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT)
WITH COUNSEL OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT, WAIVES ANY
RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR
IN ANY WAY RELATED TO, THIS GUARANTY OR THE INDEBTEDNESS.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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     This Guaranty is dated and effective as of the date stated above.

	 	 	 	 	 	 	 
	 	 	GUARANTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	ORIGEN SERVICING, INC., a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	     /s/ Ronald A. Klein
 

Ronald Klein
	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	ORIGEN SECURITIZATION COMPANY, LLC, a
	 	 	Delaware limited liability company
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Ronald A. Klein	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Ronald Klein	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	ORIGEN FINANCIAL, INC., a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Ronald A. Klein	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Ronald Klein	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 

5exv10w4

 

Exhibit 10.4

Execution Version

AMENDED AND RESTATED SECURITY AGREEMENT

     THIS AMENDED AND RESTATED SECURITY AGREEMENT (“Agreement”) is made as of April 8,
2008, by Origen Financial L.L.C., a Delaware limited liability company (“Debtor”), whose
principal place of business is located at 27777 Franklin Rd., Suite 1700, Southfield, Michigan
48034, Origen Financial, Inc., a Delaware corporation (“OFI”), Origen Servicing, Inc., a
Delaware corporation (“OSI”), Origen Securitization Company, LLC (“OSC”, and
together with OFI, OSI and Debtor, each a “Pledgor” and together the “Pledgors”),
each whose principal place of business is located at 27777 Franklin Rd., Suite 1700, Southfield,
Michigan 48034, and the William M. Davidson Trust u/a/d 12/13/04 (“Secured Party”), whose
address is 2300 Harmon Road, Auburn Hills, Michigan 48326, Attention: Jonathan S. Aaron. This
Agreement amends and restates in its entirety the Security Agreement dated September 11, 2007 (the
“Original Agreement”) executed by Debtor and OSI in favor of Secured Party. This amendment and
restatement of the Original Agreement, as amended, shall not affect the grant or priority of
security interests and liens granted under the Original Agreement.

     Pledgors hereby agree with Secured Party as follows:

     1. Definitions. As used in this Agreement, the following terms shall have the
meanings indicated below:

	 	(a)	 	The term “Code” shall mean the Uniform Commercial Code
as in effect in the State of Michigan, from time to time, or, if so required
with respect to any particular Collateral by mandatory provisions of applicable
law, as in effect in the jurisdiction in which such Collateral is located.
	 
	 	(b)	 	The term “Collateral” shall mean each Pledgor’s right,
title and interest in and to all of such Pledgor’s tangible and intangible
personal property, assets and rights, whether now owned or hereafter acquired
or arising, including, without limitation, all goods, documents, inventory,
work in process, instruments, equipment, furniture, machinery, fixtures, trade
fixtures, contract rights, chattel paper, accounts, accounts receivable,
documents, patents, licenses, deposit accounts, investment property, letters of
credit rights and letters of credit, motor vehicles, software, general
intangibles (including all product source code and object code), trade secrets
and other proprietary information, trademarks, servicemarks, business names and
domain names, copyrights (including, without limitation, copyrights for
computer programs) and all tangible property embodying the copyrights,
unpatented inventions (whether or not patentable), patents and patent
applications and license agreements, commercial tort claims, payment
intangibles, customer lists, business records, causes of action, together with
the proceeds from the sale or other disposition thereof and the products
thereof (collectively, the “Collateral”). Without limiting the foregoing, the
Collateral shall include servicing and/or sub-servicing fees payable to each
Pledgor (“Servicing Fees”) under the servicing agreements, master
servicing agreements

 

 

	 	 	 	and/or sub-servicing agreements in respect of the loans
included in the trust securitizations listed on Schedule 1 hereto (the “Servicing
Agreements”) and all proceeds from the sale thereof.
	 
	 	(c)	 	The term “Indebtedness” shall mean: (i) all
indebtedness, liabilities and obligations of Debtor to Secured Party of any
kind or character, now existing or hereafter arising, whether direct, indirect,
related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several
or joint and several, arising under or pursuant to (A) the Amended and Restated
Senior Secured Loan Agreement of even date herewith (the “2007 Loan
Agreement”) between Debtor and Secured Party pursuant to which Secured
Party has loaned the aggregate amount of $15,000,000 to Debtor, and (B) the
Senior Secured Loan Agreement of even date herewith (the “2008 Loan
Agreement” and together with the 2007 Loan Agreement, the “Loan
Agreements”) between Debtor and Secured Party pursuant to which Secured
Party has loaned $46,000,000 to Debtor; (ii) all indebtedness, liabilities and
obligations of Debtor to Secured Party now existing or hereafter arising under
(A) the Amended and Restated Senior Secured Promissory Note of even date
herewith, in the aggregate original principal amount of $10,000,000 (the
“$10 Million 2007 Note”) payable to Secured Party, (B) the Amended and
Restated Senior Secured Promissory Note of even date herewith, in the aggregate
original principal amount of $5,000,000 (the “$5 Million 2007 Note”)
payable to Secured Party, and (C) the Senior Secured Promissory Note of even
date herewith, in the aggregate original principal amount of $46,000,000 (the
“2008 Note” and together with the $10 Million 2007 Note and the $5
Million 2007 Note, the “Notes”) payable to Secured Party; (iii) all
obligations of Debtor to Secured Party under any documents evidencing,
securing, governing and/or pertaining to all or any part of the indebtedness
described in clauses (i) and (ii) above (including under any of the Loan
Documents); (iv) all costs and expenses incurred by Secured Party in connection
with the collection of all or any part of the indebtedness and obligations
described in clauses (i) through (iii) above or the protection or preservation
of, or realization upon, the Collateral, including without limitation all
reasonable attorneys’ fees; and (v) all renewals, extensions, modifications and
rearrangements of the indebtedness and obligations described in clauses (i)
through (iv) above.
	 
	 	(d)	 	The term “Loan Documents” shall mean the Loan
Agreements, this Agreement, the Notes, and the Pledge Agreements, Guaranty,
Registration Rights Agreement and Warrant (each as defined in the Loan
Agreements) and all other instruments and documents evidencing, securing,
governing, guaranteeing and/or pertaining to the Indebtedness.
	 
	 	(e)	 	The term “Obligated Party” shall mean any party other
than the Pledgors who secures, guarantees and/or is otherwise obligated to pay
all or any portion of the Indebtedness.

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	 	(f)	 	All words and phrases used herein which are expressly defined
in Section 1.201 or Chapter 9 of the Code shall have the meaning provided for
therein. Other words and phrases defined elsewhere in the Code shall have the
meaning specified therein except to the extent such meaning is inconsistent
with a definition in Section 1.201 or Chapter 9 of the Code.

     2. Security Interest. As security for the prompt payment and performance of
the Indebtedness, each Pledgor, for value received, hereby pledges and grants to Secured
Party a continuing security interest in the Collateral.

     3. Representations and Warranties. In addition to any representations and
warranties of Debtor set forth in the Loan Documents, which are incorporated herein by this
reference, each Pledgor hereby represents and warrants the following to Secured Party:

	 	(a)	 	Authority. The execution, delivery and performance of
this Agreement and all of the other Loan Documents to which Pledgor is a party
have been duly authorized by all necessary action of Pledgor.
	 
	 	(b)	 	Accuracy of Information. The exact legal name of
Pledgor is correctly shown on the first page hereof.
	 
	 	(c)	 	Enforceability. This Agreement and the other Loan
Documents to which Pledgor is a party constitute legal, valid and binding
obligations of Pledgor, enforceable in accordance with their respective terms,
except as limited by bankruptcy, insolvency or similar laws of general
application relating to the enforcement of creditors’ rights and except to the
extent specific remedies may generally be limited by equitable principles.
	 
	 	(d)	 	Ownership and Liens. Pledgor has good and defensible
title to its respective portion of the Collateral free and clear of all liens,
security interests, encumbrances or adverse claims, except for (i) the security
interest created by this Agreement and except for Permitted Liens (as defined
in the Loan Agreements), and (ii) with respect to the equity interests of
Origen CMO Residual Holding Company, LLC (“Origen CMO”) owned by OSC, the
restrictions on transfer of such interests set forth in the Operating Agreement
of Origen CMO dated March 25, 2004. No dispute, right of setoff, counterclaim
or defense exists with respect to the Collateral. Except as disclosed in
writing to Secured Party, Pledgor has not executed any other security agreement
currently affecting the Collateral and no effective financing statement or
other instrument similar in effect covering all or any part of the Collateral
is on file in any recording office except as may have been executed or filed in
favor of Secured Party.
	 
	 	(e)	 	No Conflicts or Consents. Neither the ownership or
intended use of the Collateral by Pledgor, the grant of the security interest
by Pledgor to Secured Party herein nor the exercise by Secured Party of its
rights or

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	 	 	 	remedies hereunder, will (i) conflict with any provision of (A) any federal,
state or local law, statute, rule or regulation, (B) the organizational
documents of Pledgor, or (C) any agreement, judgment, license, order or
permit applicable to or binding upon Pledgor or its assets, or (ii) result
in or require the creation of any lien, charge or encumbrance upon any of
the Collateral except as may be expressly contemplated in the Loan
Documents. Except as expressly contemplated in the Loan Documents, no
consent, approval, authorization or order of, and no notice to or filing
with, any court, governmental authority or third party is required in
connection with the grant by Pledgor of the security interest herein or the
exercise by Secured Party of its rights and remedies hereunder.
	 
	 	(f)	 	Security Interest. This Agreement creates a legal,
valid and binding security interest in favor of Secured Party in the Collateral
securing the Indebtedness, such security interest will be properly perfected
under the Code upon the filing of appropriate financing statements and will be
a first priority security interest in the Collateral.
	 
	 	(g)	 	Location/Identity. Pledgor’s principal place of
business and chief executive office (as those terms are used in the Code), is
located at the address set forth on the first page hereof. Except as specified
elsewhere herein, all Collateral and records concerning the Collateral shall be
kept at such address. Pledgor’s organizational structure and state of
organization (the “Organizational Information”) are as set forth on the
first page hereof. Except as specified herein, the Organizational Information
shall not change.

     4. Affirmative Covenants. In addition to all covenants and agreements of
Debtor set forth in the Loan Documents, which are incorporated herein by this reference,
each Pledgor will comply with the covenants contained in this Section 4 at all times
during the period of time this Agreement is effective unless Secured Party shall otherwise
consent in writing.

	 	(a)	 	Ownership and Liens. Pledgor will maintain good and
defensible title to all Collateral free and clear of all liens, security
interests, encumbrances or adverse claims, except for the security interest
created by this Agreement and the security interests and other encumbrances
expressly permitted herein or by the other Loan Documents.
	 
	 	(b)	 	Further Assurances. Pledgor will from time to time, at
its expense and at Secured Party’s request, promptly execute and deliver all
further instruments and documents and take all further action reasonably
necessary or appropriate in order (i) to perfect and protect the security
interest created or purported to be created hereby and the priority of such
security interest contemplated hereby, (ii) to enable Secured Party to exercise
and enforce its rights and remedies hereunder in respect of the Collateral, and
(iii) to otherwise effect the purposes of this Agreement, including without
limitation: (A) executing (if requested) and filing such

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	 	 	 	financing or continuation statements, or amendments thereto; and
(B) furnishing to Secured Party from time to time statements and schedules
further identifying and describing the Collateral and such other reports in
connection with the Collateral, all in reasonable detail satisfactory to
Secured Party.
	 
	 	(c)	 	Payment of Taxes. Pledgor will timely pay all property
and other taxes, assessments and governmental charges or levies imposed upon
the Collateral or any part thereof. Pledgor may, however, delay paying or
discharging any such taxes, assessments or charges so long as the validity
thereof is contested in good faith by proper proceedings and provided Pledgor
has set aside on its books adequate reserves therefor.
	 
	 	(d)	 	Insurance. Pledgor shall keep its portion of the
Collateral consisting of tangible personal property insured against loss or
damage to the Collateral under a policy or policies covering such risks as are
ordinarily insured against by similar businesses. Such insurance shall be for
amounts customarily carried in lines of business similar to that of Pledgor,
but in no case less than the actual replacement cost of the Collateral.
Pledgor shall also maintain the insurance respecting the Collateral required
under the Loan Agreements and the other Loan Documents. Pledgor will obtain
lender’s loss payable endorsements on applicable insurance policies in favor of
Secured Party as its interest may appear and will provide certificates of such
insurance to Secured Party. Pledgor shall cause each insurer to agree that
such insurer will give thirty (30) days’ written notice to Secured Party before
such policy will be altered or canceled. No settlement of any insurance claim
shall be made without Secured Party’s prior consent. In the event of any
insured loss, Pledgor shall promptly notify Secured Party thereof in writing,
and Pledgor hereby authorizes and directs any insurer concerned to make payment
of such loss directly to Secured Party as its interest may appear. Secured
Party is authorized, in the name and on behalf of Pledgor, to make proof of
loss and to adjust, compromise and collect, in such manner and amounts as it
shall determine, all claims under all policies; and Pledgor agrees to sign, on
demand of Secured Party, all receipts, vouchers, releases and other instruments
which may be necessary or desirable in aid of this authorization. The proceeds
of any insurance from loss, theft, or damage to the Collateral shall be (i)
disbursed and applied toward the repair, restoration or replacement of the
Collateral or (ii) if not disbursed or applied pursuant to clause (i), applied,
at the discretion of Secured Party, in reduction of the Indebtedness.
Notwithstanding anything to the contrary in the foregoing, upon the occurrence
and during the continuance of an Event of Default, the proceeds of any
insurance from loss, theft, or damage to the Collateral shall be applied, at
the discretion of Secured Party, in reduction of the Indebtedness.

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     5. Negative Covenants. Each Pledgor will comply with the covenants contained
in this Section 5 at all times during the period of time this Agreement is
effective, unless Secured Party shall otherwise consent in writing.

	 	(a)	 	Transfer or Encumbrance. Pledgor will not (i) sell,
assign (by operation of law or otherwise), transfer, exchange, lease or
otherwise dispose of any of the Collateral, except as permitted by the Loan
Agreements, or (ii) grant a lien or security interest in or execute, authorize,
file or record any financing statement or other security instrument with
respect to the Collateral to any party other than Secured Party, except as
permitted by the Loan Agreements.
	 
	 	(b)	 	Indebtedness. Pledgor will not incur, create, assume,
permit to exist, guarantee, endorse or otherwise become directly or indirectly
or contingently responsible or liable for any indebtedness (other than as
permitted pursuant to the Loan Agreements).
	 
	 	(c)	 	Financing Statement Filings. Pledgor recognizes that a
financing statement pertaining to the Collateral has been or may be filed in
the jurisdiction of organization of Pledgor. Without limitation of any other
covenant herein, Pledgor will neither cause nor permit any change in the
location of (i) any Collateral, (ii) any records concerning any Collateral, or
(iii) Pledgor’s place of business, or the location of the Pledgor’s chief
executive office to a jurisdiction other than as represented in
Subsection 3(g), nor will Pledgor change its name or the Organizational
Information as represented in Subsection 3(g), unless Pledgor shall
have notified Secured Party in writing of such change at least thirty (30) days
prior to the effective date of such change, and shall have first taken all
action reasonably requested by Secured Party for the purpose of further
perfecting or protecting the security interest in favor of Secured Party in the
Collateral.

     6. Rights of Secured Party. Secured Party shall have the rights contained in
this Section 6 at all times during the period of time this Agreement is effective.

	 	(a)	 	Financing Statements Filings. Each Pledgor hereby
authorizes Secured Party to file, without the signature of such Pledgor, one or
more financing or continuation statements, and amendments thereto, relating to
the Collateral. Each Pledgor further agrees that a carbon, photographic or
other reproduction of this Security Agreement or any financing statement
describing any Collateral is sufficient as a financing statement and may be
filed in any jurisdiction Secured Party may deem appropriate.
	 
	 	(b)	 	Power of Attorney. Each Pledgor hereby irrevocably
appoints Secured Party as such Pledgor’s attorney-in-fact, such power of
attorney being coupled with an interest, with full authority in the place and
stead of such Pledgor and in the name of such Pledgor or otherwise, after the
occurrence

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	 	 	 	of an Event of Default, to take any action and to execute any instrument
that Secured Party may deem necessary or appropriate to perform Pledgor’s
obligations under this Agreement or to accomplish the purposes of this
Agreement, including without limitation: (i) to demand, collect, sue for,
recover, compound, receive and give acquittance and receipts for moneys due
and to become due under or in respect of the Collateral; (ii) to receive,
endorse and collect any drafts or other instruments, documents and chattel
paper in connection with clause (i) above; and (iii) to file any claims or
take any action or institute any proceedings that Secured Party may deem
necessary or appropriate for the collection and/or preservation of the
Collateral or otherwise to enforce the rights of Secured Party with respect
to the Collateral. All costs and expenses (including reasonable attorneys
fees) incurred by Secured Party in connection with Secured Party’s exercise
of its rights hereunder shall be, at the option of Secured Party, included
in the Indebtedness or payable by such Pledgor to Secured Party immediately
upon demand, together with interest at an annual rate equal to the Default
Rate from the date of disbursement by Secured Party to the date of payment
by the Debtor.
	 
	 	(c)	 	Secured Party’s Right to Cure. In case of failure by
any Pledgor to procure or maintain insurance, or to pay any fees, assessments,
charges or taxes arising with respect to the Collateral, Secured Party shall
have the right, but shall not be obligated to, effect such insurance or pay
such fees, assessments, charges or taxes, as the case may be, and, in that
event, the cost thereof shall be, at the option of Secured Party, included in
the Indebtedness or payable by such Pledgor to Secured Party immediately upon
demand, together with interest at an annual rate equal to the Default Rate from
the date of disbursement by Secured Party to the date of payment by the Debtor.

     7. Events of Default. Each of the following constitutes an “Event of
Default” under this Agreement:

	 	(a)	 	Non-Performance of Covenants. The failure of either
Pledgor or any Obligated Party to timely and properly observe, keep or perform
any covenant, agreement, warranty or condition required herein or in any of the
other Loan Documents and such failure is not cured within ten (10) days after
Pledgors become aware or should have become aware of such failure; or
	 
	 	(b)	 	Default Under Loan Agreements. The occurrence of an
Event of Default under the Loan Agreements; or
	 
	 	(c)	 	Default Under Notes. The occurrence of an Event of
Default under the Notes, including, but not limited to, a default by Debtor to
pay principal or interest thereunder when due; or

7

 

	 	(d)	 	Execution on Collateral. The Collateral or any portion
thereof is taken on execution or other process of law in any action against
either Pledgor; or
	 
	 	(e)	 	Action by Other Lienholder. The holder of any lien or
security interest on any of the Collateral (without hereby implying the consent
of Secured Party to the existence or creation of any such lien or security
interest on the Collateral not otherwise permitted hereunder), declares a
default thereunder or institutes foreclosure or other proceedings for the
enforcement of its remedies thereunder.

     8. Remedies and Related Rights. If an Event of Default shall have occurred and
be continuing, Secured Party shall have the rights and remedies provided in this Section in
addition to all rights and remedies provided in the Loan Documents or in the Code and any
other applicable law.

	 	(a)	 	Generally. Subject to the provisions of Section 8(b)
below, if an Event of Default shall have occurred and be continuing:

(i) Secured Party may give written notice of default to Pledgors, following
which Pledgors shall not dispose of, conceal, transfer, sell or encumber any
of the Collateral without Secured Party’s prior written consent.

(ii) Secured Party may require Pledgors to assemble the Collateral at a
place designated by Secured Party, which is reasonably convenient to the
parties.

(iii) Secured Party may take possession of any or all of the Collateral,
including Pledgors’ records pertaining to the Collateral that are reasonably
necessary to properly administer and control the Collateral or the handling
and collection of the Collateral. Pledgors consent to Secured Party’s entry
into any Pledgor’s premises to repossess Collateral.

(iv) Secured Party may receive and open mail addressed to any Pledgor.

(v) Secured Party may dispose of the Collateral at private or public sale.
Any required notice of sale shall be deemed commercially reasonable if given
at least five (5) days prior to sale. Secured Party may adjourn any public
or private sale to a different time or place without notice or publication
of such adjournment, and may adjourn any sale either before or after offers
are received. The Collateral may be sold in such lots as Secured Party may
elect, in its sole discretion. Secured Party may take such action as deemed
necessary to repair, protect, or maintain the Collateral pending its
disposition.

(vi) Secured Party may recover any or all proceeds of accounts from any bank
or other custodian who may have possession thereof. Each

8

 

Pledgor authorizes and directs all custodians of its assets to comply with
any demand for payment made by Secured Party pursuant to this Agreement,
without the need of confirmation from Pledgor and without making any inquiry
as to the existence of a default hereunder or any other matter. Secured
Party may engage a collection agent to collect accounts.

(vii) Secured Party may notify any or all account debtors that subsequent
payments must be made directly to Secured Party or its designated agent.
Such notice may be made over Secured Party’s signature(s) or over the
appropriate Pledgor’s name with no signature or both, in Secured Party’s
discretion. Pledgors authorize and direct all existing or future account
debtors to comply with any such notice given by Secured Party, without the
need of confirmation from Pledgors and without making any inquiry as to the
existence of a default hereunder or as to any other matter. Pledgor agrees,
on written notice from Secured Party, to deliver to Secured Party promptly
upon receipt thereof, in the form in which received (together with all
necessary endorsements), all payments received by any Pledgor from any
account debtor.

(viii) Secured Party may, but shall not be obligated to, take such measures
as Secured Party may deem necessary in order to collect any or all of the
accounts. Without limiting the foregoing, Secured Party may institute any
administrative or judicial action that may be deemed necessary in the course
of collecting and enforcing any or all of the accounts. Any administrative
or judicial action or other action taken by Secured Party in the course of
collecting the accounts may be taken by Secured Party in its own name or in
Pledgors name. Secured Party may compromise any disputed claims and may
otherwise enter into commercially reasonable settlements with account
debtors or obligors under the accounts, which compromises or settlements
shall be binding upon Pledgors.

(ix) Secured Party may, with respect to any account involving uncompleted
performance by Pledgors, and with respect to any general intangible or other
Collateral whose value may be preserved by additional performance on
Pledgors’ part, take such action as Secured Party may deem appropriate
including, without limitation, performing or causing the performance of any
obligation of Pledgors thereunder, the making of payments to prevent
defaults thereunder, and the granting of adequate assurances to other
parties thereto with respect to future performance. Secured Party’s action
with respect to any such accounts or general intangibles shall not render
Secured Party liable for further performance thereunder unless Secured Party
so agree in writing.

(x) Secured Party may exercise its lien upon and right of setoff against any
monies, items, credits, deposits or instruments that Secured Party may

9

 

have in its possession and which belong to Pledgors or to any other person
or entity liable for the payment of any or all of the Indebtedness.

(xi) All amounts received by Secured Party for Debtor’s account by exercise
of remedies hereunder shall be applied as follows: first, to the payment of
all out-of-pocket expenses incurred by Secured Party in exercising rights
hereunder, including reasonable attorney’s fees, and any other costs and
expenses due Secured Party from Pledgors; second, to the payment of all fees
included in the Indebtedness; third, to the payment of all interest included
in the Indebtedness, in such order as Secured Party may elect; fourth, to
the payment of all principal included in the Indebtedness, in such order as
Secured Party may elect, and fifth, any surplus to Pledgors or their
successors or assigns.

(xii) In the event that the proceeds of any sale of, collection from, or
other realization upon, all or any part of the Collateral by Secured Party
are insufficient to pay all amounts to which Secured Party is legally
entitled, Pledgors and any party who guaranteed or is otherwise obligated to
pay all or any portion of the Indebtedness shall be liable for the
deficiency, together with interest thereon as provided in the Loan
Documents, to the full extent permitted by the Code.

(xiii) Each Pledgor waives any right to require Secured Party to proceed
against any third party, exhaust any Collateral or other security for the
Indebtedness, or to have any third party joined with such Pledgor in any
suit arising out of the Indebtedness or any of the Loan Documents, or pursue
any other remedy available to Secured Party. Each Pledgor further waives
any and all notice of acceptance of this Agreement and of the creation,
modification, rearrangement, renewal or extension of the Indebtedness. Each
Pledgor further waives any defense arising by reason of any disability or
other defense of any third party or by reason of the cessation from any
cause whatsoever of the liability of any third party.

	 	(b)	 	Remedies Relating to Servicing Fees. Notwithstanding
anything to the contrary in Section 8(a) above:

(i) Until the occurrence of an Event of Default, the appropriate Pledgor
shall be entitled to collect and retain 100% of the Servicing Fees under the
Servicing Agreements.

(ii) For so long as the Pledgors do not sell or otherwise dispose of the
Collateral, Secured Party shall be entitled to receive 45% of the Servicing
Fees collected pursuant to the Servicing Agreements and the appropriate
Pledgor shall be entitled to collect and retain 55% of the Servicing Fees
collected pursuant to the Servicing Agreements; provided that if the amount
of the Servicing Fees collected by Secured Party for any twelve month period
(commencing with the twelve month period ending on the

10

 

first anniversary of the occurrence of the Event of Default) does not equal
or exceed $4 million, Secured Party shall be entitled to collect and retain
an incremental amount (in addition to the 45%) equal to 35% of the Servicing
Fees until Secured Party has collected a minimum of $4 million in Servicing
Fees for such twelve month period. If the Pledgors sell or otherwise
dispose of the Collateral (with the consent of Secured Party), Secured Party
shall be entitled to collect and retain 100% of the proceeds received from
the sale of the Collateral until the Notes, and all accrued but unpaid
interest thereon, is paid in full.

     9. Limitation on Duties Regarding Collateral. Secured Party’s sole duty with
respect to the custody, safekeeping and physical preservation of the Collateral in its
possession, under Section 9207 of the UCC or otherwise, shall be to deal with it in the same
manner as Secured Party deals with similar property for its own account. Neither Secured
Party nor any of its agents shall be liable for failure to demand, collect or realize upon
any of the Collateral or for any delay in doing so or shall be under any obligation to sell
or otherwise dispose of any Collateral upon the request of any Pledgor or otherwise.

     10. Miscellaneous.

	 	(a)	 	Entire Agreement. This Agreement contains the entire
agreement of Secured Party and the Pledgors with respect to the Collateral.
	 
	 	(b)	 	Amendment. No modification, consent or amendment of
any provision of this Agreement or any of the other Loan Documents shall be
valid or effective unless the same is set forth in a written instrument signed
by the party against whom it is sought to be enforced, provided that any
amendments specifically permitted by the Code without authentication by the
Pledgors shall not require a written instrument, signature or authentication.
	 
	 	(c)	 	Actions by Secured Party. The lien, security interest
and other security rights of Secured Party hereunder shall not be impaired by
(i) any renewal, extension, increase or modification with respect to the
Indebtedness, (ii) any surrender, compromise, release, renewal, extension,
exchange or substitution that Secured Party may grant with respect to the
Collateral, or (iii) any release or indulgence granted to any endorser,
guarantor or surety of the Indebtedness. The taking of additional security by
Secured Party shall not release or impair the lien, security interest or other
security rights of Secured Party hereunder or affect the obligations of the
Pledgors hereunder.
	 
	 	(d)	 	Waiver by Secured Party. Secured Party may waive any
Event of Default without waiving any other prior or subsequent Event of
Default. Neither the failure by Secured Party to exercise, nor the delay by
Secured Party in exercising, any right or remedy upon any Event of Default
shall be construed as a waiver of such Event of Default or as a waiver of the
right

11

 

	 	 	 	to exercise any such right or remedy at a later date. No single or partial
exercise by Secured Party of any right or remedy hereunder shall exhaust the
same or shall preclude any other or further exercise thereof, and every such
right or remedy hereunder may be exercised at any time. No waiver of any
provision hereof or consent to any departure by either Pledgor therefrom
shall be effective unless the same shall be in writing and signed by Secured
Party and then such waiver or consent shall be effective only in the
specific instances, for the purpose for which given and to the extent
therein specified. No notice to or demand on either Pledgor in any case
shall of itself entitle such Pledgor to any other or further notice or
demand in similar or other circumstances.
	 
	 	(e)	 	Costs and Expenses. Debtor will upon demand pay to
Secured Party the amount of any and all costs and expenses (including without
limitation, reasonable attorneys’ fees and expenses), which Secured Party may
incur in connection with the protection, administration and enforcement of this
Agreement (including Secured Party’s rights in the Collateral) and any of the
rights of Secured Party under the Loan Documents or in connection with any
Event of Default.
	 
	 	(f)	 	GOVERNING LAW. THIS AGREEMENT 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 THE
SECURITY INTEREST GRANTED HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL,
ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF MICHIGAN.
	 
	 	(g)	 	Consent to Jurisdiction. As a material inducement to
Secured Party to enter into this Agreement and the Loan Agreements, the
Pledgors agree that all actions or proceedings in any manner relating to or
arising out of this 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 each Pledgor consent to the jurisdiction of such
courts. Each Pledgor 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.
	 
	 	(h)	 	Severability. If any provision of this Agreement is
held by a court of competent jurisdiction to be illegal, invalid or
unenforceable under present or future laws, such provision shall be fully
severable, shall not impair or invalidate the remainder of this Agreement and
the effect thereof shall be confined to the provision held to be illegal,
invalid or unenforceable.
	 
	 	(i)	 	Notices. All notices, requests, demands and other
communications required or permitted hereunder shall be in writing, and shall
be deemed to

12

 

	 	 	 	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 in the Loan Agreements 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.
	 
	 	(j)	 	Binding Effect and Assignment. This Agreement
(i) creates a continuing security interest in the Collateral, (ii) shall be
binding on each Pledgor and its successors and assigns, and (iii) shall inure
to the benefit of Secured Party and its successors and assigns. No party’s
rights and obligations hereunder may be assigned or otherwise transferred
without the prior written consent of the other party, except that Secured
Party’s rights under the Agreement may be assigned to any person to whom the
Indebtedness is validly assigned in accordance with the Loan Documents.
	 
	 	(k)	 	Cumulative Rights. All rights and remedies of Secured
Party hereunder are cumulative of each other and of every other right or remedy
that Secured Party may otherwise have at law or in equity or under any of the
other Loan Documents, and the exercise of one or more of such rights or
remedies shall not prejudice or impair the concurrent or subsequent exercise of
any other rights or remedies. Further, except as specifically noted as a
waiver herein, no provision of this Agreement is intended by the parties to
this Agreement to waive any rights, benefits or protection afforded to Secured
Party under the Code.
	 
	 	(l)	 	Gender and Number. Within this Agreement, words of any
gender shall be held and construed to include the other gender, and words in
the singular number shall be held and construed to include the plural and words
in the plural number shall be held and construed to include the singular,
unless in each instance the context requires otherwise.
	 
	 	(m)	 	Descriptive Headings. The headings in this Agreement
are for convenience only and shall in no way enlarge, limit or define the scope
or meaning of the various and several provisions hereof.
	 
	 	(n)	 	Facsimile and Electronic Copies. If this document 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.

13

 

[Signature Page Follows]

14

 

This Amended and Restated Security Agreement is executed as of the date first written above.

	 	 	 	 	 	 	 	 	 
	DEBTOR:	 	SECURED PARTY:	 	 
	 
	 	 	 	 	 	 	 	 
	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 A. Klein

	 	Name: William M. Davidson
	 	 
	Title:

	 	Manager
	 	Title: Trustee
	 	 
	 
	 	 	 	 	 	 	 	 
	OFI:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	ORIGEN FINANCIAL, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Ronald A. Klein	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:

	 	Ronald A. Klein	 	 	 	 	 	 
	Title:

	 	Chief Executive Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	OSI:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	ORIGEN SERVICING, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Ronald A. Klein	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:

	 	Ronald A. Klein	 	 	 	 	 	 
	Title:

	 	Chief Executive Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	OSC:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	ORIGEN SECURITIZATION COMPANY, LLC	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Ronald A. Klein	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:

	 	Ronald A. Klein	 	 	 	 	 	 
	Title:

	 	Chief Executive Officer	 	 	 	 	 	 

Signature page to Amended and Restated Security Agreement

15

 

Schedule 1

Trust Securitizations

Origen Manufactured Housing Contract Trust 2004-A

Origen Manufactured Housing Contract Trust 2004-B

Origen Manufactured Housing Contract Trust 2005-A

Origen Manufactured Housing Contract Trust 2005-B

Origen Manufactured Housing Contract Trust 2006-A

Origen Manufactured Housing Contract Trust 2007-A

Origen Manufactured Housing Contract Trust 2007-B

16

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