Document:

exv4w1

 

Exhibit 4.1

NEITHER THIS STOCK PURCHASE WARRANT NOR THE SHARES THAT MAY BE PURCHASED HEREUNDER HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1993, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES
LAW AND MAY NOT BE SOLD OR TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
SUCH ACT AND LAW, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF SUCH ACT AND LAW. THIS STOCK PURCHASE WARRANT AND THE SHARES THAT
MAY BE PURCHASED HEREUNDER MAY BE TRANSFERRED ONLY IN COMPLIANCE WITH THE CONDITIONS SPECIFIED
HEREIN.

ORIGEN FINANCIAL, INC.

STOCK PURCHASE WARRANT

			
	 	 	 
	Date of Issuance: April 8, 2008
	 	Certificate No. W-2

     THIS IS TO CERTIFY that the William M. Davidson Trust u/a/d 12/13/04 and its transferees,
successors and assigns (the “Holder”), for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, is entitled to purchase from Origen Financial, Inc.,
a Delaware corporation (the “Company”), at the price of $1.22 per share, the closing
consolidated bid price of the Company’s common stock, $0.01 par value per share (“Common
Stock”) at 4:00 pm (EST) on the trading date immediately prior to the date hereof (the
“Exercise Price”), at any time after the date hereof (the “Commencement Date”) and
expiring on April 8, 2013 (the “Expiration Date”), Two Million Six Hundred Thousand
(2,600,000) shares of Common Stock (as such number may be adjusted as provided herein, the
“Warrant Shares”).

     Capitalized terms used herein shall have the meanings ascribed to such terms in Section
10 hereof unless otherwise defined herein.

     1. The Warrant; Transfer and Exchange.

     (a) The Warrant. This Stock Purchase Warrant (“Warrant”) and the
rights and privileges of the Holder hereunder may be exercised by the Holder in whole or in
part as provided herein, and, subject to Sections 1(b) and 7 hereof, may,
subject to this Warrant, be transferred by the Holder to any other Person or Persons who
meet the requirements set forth herein or therein at any time or from time to time, in whole
or in part.

     (b) Transfer and Exchanges. The Company shall initially record this Warrant on
a register to be maintained by the Company with its other books and subject to Section
7 hereof, from time to time thereafter shall reflect the transfer of this Warrant on
such register when surrendered for transfer in accordance with the terms hereof and properly
endorsed, accompanied by appropriate instructions, and further accompanied by payment in
cash or by check, bank draft or money order payable to the order of the Company, in United
States currency, of an amount equal to any stamp or other tax or governmental charge or fee
required to be paid in connection with the transfer thereof.

 

 

Upon any such transfer, a new warrant or warrants shall be issued to the transferee and the Holder
(in the event this Warrant is only partially transferred) and the surrendered warrant shall
be canceled. This Warrant may be exchanged at the option of the Holder, when surrendered at
the Principal Office of the Company, for another warrant or other warrants of like tenor and
representing in the aggregate the right to purchase a like number of shares of Common Stock.

     2. Exercise.

     (a) Right to Exercise. At any time after the Commencement Date and on or
before the Expiration Date, the Holder, in accordance with the terms hereof, may exercise
this Warrant, in whole at any time or in part from time to time, by delivering this Warrant
to the Company during normal business hours on any Business Day at the Company’s Principal
Office, together with the Notice of Exercise, in the form attached hereto as Exhibit
A and made a part hereof (the “Notice of Exercise”), duly executed, and payment
of the Exercise Price per share for each share purchased, as specified in the Notice of
Exercise. The aggregate Exercise Price (the “Aggregate Exercise Price”) to be paid
for the shares to be purchased (the “Exercise Amount”) shall equal the product of
(i) the Exercise Amount multiplied by (ii) the Exercise Price. If the Expiration Date is
not a Business Day, then this Warrant may be exercised on the next succeeding Business Day.

     (b) Payment of the Aggregate Exercise Price. Payment of the Aggregate Exercise
Price shall be made to the Company in cash or other immediately available funds.

     (c) Issuance of Shares of Common Stock. Upon receipt by the Company of this
Warrant at its Principal Office in proper form for exercise, and accompanied by the Notice
of Exercise and payment of the Aggregate Exercise Price as aforesaid, the Holder shall be
deemed to be the holder of record of the shares of Common Stock issuable upon such exercise,
notwithstanding that certificates representing such shares of Common Stock may not then be
actually delivered. Within ten (10) Business Days after such surrender of this Warrant,
delivery of the Notice of Exercise and payment of the Aggregate Exercise Price as aforesaid,
the Company shall issue and cause to be delivered to, or upon the written order of, the
Holder (and in such name or names as the Holder may designate) a certificate or certificates
for the Exercise Amount.

     (d) Fractional Shares. The Company shall not be required to deliver fractions
of shares of Common Stock upon exercise of this Warrant. If any fraction of a share of
Common Stock would be deliverable upon an exercise of this Warrant, the Company shall, in
lieu of delivering such fraction of a share of Common Stock, make a cash payment to the
Holder in an amount equal to the same fraction of the Market Price Per Share determined as
of the Business Day immediately preceding the date of exercise of this Warrant.

     (e) Partial Exercise. In the event of a partial exercise of this Warrant, the
Company shall issue to the Holder a Warrant in like form for the unexercised portion thereof
which has not expired.

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     3. Payment of Taxes. The Company shall pay all stamp taxes attributable to the
initial issuance of shares or other securities issuable upon the exercise of this Warrant or
issuable pursuant to Section 6 hereof, excluding any tax or taxes which may be payable
because of the transfer involved in the issuance or delivery of any certificates for shares or
other securities in a name other than that of the Holder in respect of which such shares or
securities are issued.

     4. Replacement Warrant. In case this Warrant is mutilated, lost, stolen or destroyed,
the Company shall issue and deliver in exchange and substitution for and upon cancellation of the
mutilated Warrant, or in lieu of and in substitution for this Warrant lost, stolen or destroyed, a
new Warrant of like tenor and representing an equivalent right or interest, but only upon receipt
of evidence reasonably satisfactory to the Company of such loss, theft or destruction of such
Warrant and upon receipt of indemnity reasonably satisfactory to the Company provided that if the
Holder is a financial institution or other institutional or fund investor its own agreement shall
be satisfactory.

     5. Covenants.

     (a) Reservation of Shares. The Company shall at all times reserve and keep
available out of the aggregate of its authorized but unissued shares such number of its
duly authorized shares of Common Stock as shall be sufficient to enable the Company to issue
Common Stock upon exercise of this Warrant.

     (b) Validly Issued Shares. The Company covenants that all shares of Common
Stock that may be issued upon exercise of this Warrant, assuming full payment of the
Aggregate Exercise Price (including those issued pursuant to Section 6 hereof)
shall, upon delivery by the Company, be duly authorized and validly issued, fully paid and
nonassessable, free from all stamp taxes, liens and charges with respect to the issue or
delivery thereof and otherwise free of all other security interests, encumbrances and claims
of any nature whatsoever (other than security interests, encumbrances and claims to which
the Holder is subject prior to the issuance of this Warrant (or the issuance of any shares
of Common Stock pursuant to Section 6 hereof) and other transfer restrictions
described herein).

     (c) Performance. The Company will not, by amendment of its Certificate of
Incorporation or through any reorganization, recapitalization, transfer of assets,
consolidation, merger, share exchange, dissolution or any other voluntary action, avoid or
seek to avoid the observance or performance of any of the terms of this Warrant, including,
without limitation, the adjustments required under Section 6 hereof

     (d) Dividends. At all times prior to the earlier of the exercise of this
Warrant in full or the Expiration Date of this Warrant, the Company shall not declare or pay
any dividend or distribution that, when taken together with all other dividends declared and
paid for the taxable year in which the subject dividend is declared and paid, would exceed
one hundred per cent (100%) of the Company’s REIT taxable net income for that taxable year;
provided, however, that if the Company obtains the approval of the stockholders of the
Company in accordance with Rule 4350 of the Nasdaq Marketplace Rules to grant to the Holder
customary anti-dilution protection that would provide for an adjustment to the

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Exercise Price by reducing the Exercise Price to the weighted average of the price of
any Common Stock sold at below the Exercise Price then in effect (with customary exceptions)
(“Stockholder Approval”), then this Section 5(d) shall, on the date of such
Stockholder Approval, but not prior thereto, become null and void and shall no longer be of
any force or effect, and the Company shall amend this Warrant promptly to grant to the
Holder such weighted average anti-dilution protection.

     6. Adjustment of Exercise Price and Number of Shares of Common Stock. The Exercise
Price and the number of shares of Common Stock purchasable upon the exercise of this Warrant shall
be subject to adjustment from time to time upon the occurrence of certain events described in this
Section 6. Upon each adjustment of the Exercise Price, the Holder of this Warrant shall
thereafter be entitled to purchase, at the Exercise Price resulting from such adjustment, the
number of shares of Common Stock obtained by multiplying the Exercise Price in effect immediately
prior to such adjustment by the number of shares of Common Stock purchasable pursuant hereto
immediately prior to such adjustment, and dividing the product thereof by the Exercise Price
resulting from such adjustment:

     (a) Stock Dividends; Subdivisions and Combinations. In case at any time or
from time to time the Company shall:

(A) issue to the holders of its Common Stock a dividend payable in, or other
distribution of, shares of Common Stock (a “Stock Dividend”),

(B) subdivide its outstanding shares of Common Stock into a larger number of
shares of Common Stock, including, without limitation, by means of a stock
split (a “Stock Subdivision”), or

(C) combine its outstanding shares of Common Stock into a smaller number of
shares of Common Stock (a “Stock Combination”),

then the number of shares of Common Stock purchasable upon exercise of this Warrant
immediately prior thereto shall be adjusted so that the Holder shall thereafter be entitled
after the completion of each such event to receive the kind and number of shares of Common
Stock or other securities of the Company that the Holder would have owned or have been
entitled to receive after the happening of each such event, had this Warrant been exercised
immediately prior to the happening of each such event or any record date with respect
thereto.

     (b) Miscellaneous. The following provisions shall be applicable to the making
of adjustments provided above in Section 6(a):

     (A) The adjustments required by Section 6(a) shall be made whenever and
as often as any specified event requiring an adjustment shall occur. For the purpose
of any adjustment, any specified event shall be deemed to have occurred at the close
of business on the date of its occurrence.

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     (B) In computing adjustments under Section 6(a), fractional interests
in Common Stock shall be disregarded.

     (C) If the Company shall take a record of the holders of its Common Stock for
the purpose of entitling them to receive a dividend or distribution or subscription
or purchase rights and shall, thereafter and before the distribution to stockholders
thereof, legally abandon its plan to pay or deliver such dividend, distribution,
subscription or purchase rights, then no adjustment shall be required by reason of
the taking of such record and any such adjustment previously made in respect thereof
shall be rescinded and annulled.

     (c) Changes in Common Stock. If at any time the Company shall initiate any
transaction or be a party to any transaction (including, without limitation, a merger,
amalgamation, reorganization, consolidation, share exchange, sale, lease or other
disposition of all or substantially all of the Company’s assets, liquidation,
recapitalization or reclassification of the Common Stock) in connection with which the
shares of Common Stock shall be changed into or exchanged for different securities of the
Company or capital stock or other securities of another corporation or interests in a
non-corporate entity or other property (including cash) or any combination of the foregoing
(each such transaction being herein called a “Transaction”), then as a condition of
the consummation of the Transaction, lawful enforceable and adequate provision shall be made
so that the Holder shall be entitled to elect by written notice to the Company to receive a
new warrant in form and substance no less favorable to the Holder, and in exchange for, this
Warrant to purchase all or a portion of such securities or other property; provided,
however, nothing in this Section 6(c) shall require the Company to provide a
replacement warrant providing a right to acquire the securities of any issuer other than the
Company. The foregoing provisions of this Section 6(c) shall similarly apply to
successive Transactions.

     (d) Notices.

     (i) Notice of Proposed Actions. In case the Company shall propose (A)
to pay any dividend payable in stock of any class to the holders of its Common Stock
or to make any other distribution to the holders of its Common Stock, (B) to effect
any Stock Subdivision or Stock Combination, (C) to effect any reclassification of
its Common Stock, (D) to effect any recapitalization, stock subdivision, stock
combination or other capital reorganization, (E) to effect any consolidation or
merger, amalgamation, reorganization, share exchange, or sale, lease or other
disposition of all or substantially all of its property, assets or business, (F) to
effect the liquidation, dissolution or winding up of the Company or (G) to effect
any other action which would require an adjustment under this Section 6,
then in each such case the Company shall give to the Holder written notice of such
proposed action, which shall specify the proposed date on which a record is to be
taken for the purposes of such stock dividend, distribution, Stock Subdivision or
Stock Combination, or the proposed date on which such reclassification,
reorganization, consolidation, merger, amalgamation, share exchange, sale, transfer,
disposition, liquidation, dissolution, winding up or other

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transaction is to take place and the date of participation therein by the
holders of Common Stock, if any such date is to be fixed, or the proposed date on
which the transfer of Common Stock is to occur, and shall also set forth such facts
with respect thereto as shall be reasonably necessary to indicate the effect of such
action on the Common Stock and on the number of shares of Common Stock purchasable
upon exercise of this Warrant after giving effect to any adjustment which will be
required as a result of such action. Such notice shall be so given in the case of
any action covered by clause (A) or (B) above at least ten (10) days prior to the
record date for determining holders of the Common Stock for purposes of such action
and, in the case of any other such action, at least ten (10) days prior to the
earlier of the date of the taking of such proposed action or the date of
participation therein by the holders of Common Stock.

     (ii) Adjustment Notice. Whenever the number of shares of Common Stock
purchasable upon exercise of this Warrant is to be adjusted pursuant to this
Section 6, unless otherwise agreed by the Holder, the Company shall promptly
notify the Holder of such adjustment or adjustments.

     7. Transfers of the Warrant.

     (a) Generally. This Warrant and the Warrant Shares are subject to the
restrictions on transfer set forth in this Section 7. This Warrant has not been,
and the Warrant Shares at the time of their issuance may not be, registered under the
Securities Act. This Warrant and the Warrant Shares are issued or issuable subject to the
provisions and conditions contained herein, and every Holder hereof by accepting the same
agrees with the Company to such provisions and conditions, and represents to the Company
that this Warrant has been acquired and the Warrant Shares will be acquired for the account
of the Holder for investment and not with a view to or for sale in connection with any
distribution thereof.

     (b) Compliance with Securities Laws. The Holder agrees that this Warrant and
the Warrant Shares may not be sold or otherwise disposed of except pursuant to an effective
registration statement under the Securities Act and applicable state securities laws or
pursuant to an applicable exemption from the registration requirements of the Securities Act
and such state securities laws. In the event that the Holder transfers this Warrant or the
Warrant Shares pursuant to an applicable exemption from registration, the Company may
request, at its expense, that the Holder deliver an opinion of counsel reasonably acceptable
to the Company that the proposed transfer does not violate the Securities Act and applicable
state securities laws.

     (c) Permitted Transfers. The Holder of this Warrant shall not make any
transfer, assignment, pledge, mortgage or other encumbrance of this Warrant or any interest
therein, or any other disposition of this Warrant or any interest therein whatsoever,
without the prior written consent of the Company; provided, however, that this Warrant may
be transferred by operation of law and the Holder of this Warrant may transfer or assign all
or any part of this Warrant to (i) any Affiliate (as hereinafter defined) of the Holder and
(ii) in the case of a Holder that is an individual, a member of

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the immediate family of the Holder, trusts for the benefit of the Holder or such
immediate family member, and partnerships in which substantially all of the interests are
held by the Holder and/or members of such Holder’s immediate family. An immediate family
member shall mean any descendants (children, grandchildren and more remote descendants),
including step-children and relationships arising from legal adoption, and the spouse of the
Holder or Holder’s descendant. The term “Affiliate” means, with respect to any
particular Person, any other Person that directly or indirectly controls, is controlled by
or is under common control with such particular Person, any officer, director or manager of
such Person and with respect to the initial Holder of this Warrant, shall also include the
beneficiaries and trustees of such initial Holder. For the purpose of this definition,
“control” means the possession, directly or indirectly, of the power to direct the
management and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

     (d) Registration Rights Agreement. The shares of Common Stock issuable upon
exercise of this Warrant are subject to the terms of a Registration Rights Agreement of even
date herewith, by and between the Company and the Holder.

     8. Representations of the Holder.

     With respect to this Warrant, the Holder represents and warrants to the Company as follows:

     (a) Investment. It is acquiring this Warrant for investment for its own
account and not with a view to, or for resale in connection with, any distribution thereof.
It understands that this Warrant and the shares of Common Stock issuable upon exercise
thereof have not been registered under the Securities Act, nor qualified under applicable
state securities laws.

     (b) Rule 144. It acknowledges that this Warrant and the Common Stock must be
held indefinitely unless they are subsequently registered under the Securities Act or an
exemption from such registration is available. It has been advised or is aware of the
provisions of Rule 144 promulgated under the Securities Act.

     (c) Access to Data. It has had an opportunity to discuss the Company’s
business, management and financial affairs with the Company’s management and has had the
opportunity to inspect the Company’s facilities.

     (d) Accredited Investor. It is an “accredited investor” within the meaning of
Regulation D promulgated under the Securities Act.

     9. Participation Right.

     (a) Subject to the terms and conditions specified in this Section 9, the
Company hereby grants to the Holder of this Warrant a right to participate in future sales
by the Company of its shares of Common Stock and securities convertible into or exercisable
for shares of Common Stock that are offered (or are convertible into or exercisable for
shares of Common Stock) at less than the Exercise Price per share (the

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“Participation Right”). Notwithstanding anything to the contrary contained in
this Section 9, the Participation Right is subject to (i) Board authorization of a
waiver under Section 7.5(a) of the Certificate of Incorporation, if required and (ii)
compliance with applicable rules and requirements of the Nasdaq Stock Market, and the
Company shall not be obligated to extend such Participation Right to Holder if such
Participation Right would violate any applicable rule or regulation of the Nasdaq Stock
Market or the Certificate of Incorporation.

     (b) Each time the Company proposes to offer any shares of Common Stock, or securities
convertible into or exercisable for any shares of Common Stock at a price per share that is
less than the Exercise Price (“Shares”), the Company shall offer to Holder the right
to purchase a portion of such Shares (as determined in subsection (2) below) in accordance
with the following provisions:

     (1) The Company shall deliver a written notice (“Notice”) to the Holder
stating (i) its bona fide intention to offer such Shares, (ii) the number of such
Shares to be offered, and (iii) the price and terms, if any, upon which it proposes
to offer such Shares.

     (2) Within ten (10) calendar days after the Notice is sent, the Holder may
elect to purchase or obtain, at the price and on the terms specified in the Notice,
up to the greater of (i) that portion of such Shares which equals the proportion
(the “Proportion”) that the number of shares of Common Stock held by such
Holder (treating the Warrant as if fully exercised for Common Stock) bears to the
total number of shares of Common Stock of the Company then outstanding (assuming for
such calculation any shares issuable upon conversion of any capital stock
convertible into or exchangeable for Common Stock); and (ii) the greatest number of
Shares being purchased by any single investor in the offering giving rise to the
Participation Right.

     (3) The Participation Right shall not be applicable (i) to the issuance or sale
of shares of Common Stock (as adjusted to reflect any stock splits, combinations or
other events involving the Common Stock) to employees, consultants or members of the
Company’s Board of Directors (the “Board”) pursuant to employee or director
equity plans which are approved by the Board, (ii) to the issuance of securities
pursuant to the conversion or exercise of convertible or exercisable securities of
the Company, (iii) to securities issued in connection with any acquisition or
business combination transaction approved by the Board, or (iv) to securities issued
in connection with equipment lease financings or other financings with commercial
lenders or in strategic transactions involving the Company and other entities
including joint ventures or marketing, distribution or development arrangements, in
each case provided that any issuance pursuant to subsection (iv) has been approved
by the Board.

     10. Definitions.

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     As used herein, in addition to the terms defined elsewhere herein, the following terms shall
have the following meanings.

     “Business Day” means any day other than a Saturday, Sunday or a day on which
commercial banking institutions in Detroit, Michigan are authorized or required by law or executive
order to be closed.

     “Certificate of Incorporation” means the Second Amended and Restated Certificate of
Incorporation, as amended, of the Company.

     “Commission” means the Securities and Exchange Commission or any similar agency then
having jurisdiction to enforce the Securities Act or the Exchange Act.

     “Convertible Securities” means evidences of indebtedness, shares of stock or other
securities (including, but not limited to, options and warrants) which are directly or indirectly
convertible, exercisable or exchangeable, with or without payment of additional consideration in
cash or property, for shares of Common Stock, either immediately or upon the onset of a specified
date or the happening of a specified event.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission thereunder.

     “Market Price” shall mean, with respect to any day, the closing consolidated bid price
of a share of Common Stock for the immediately preceding day, in accordance with the rules and
regulations of the Nasdaq Stock Market or if such securities are not publicly traded, the Market
Price for such day shall be the fair market value thereof determined jointly by the Company and the
holder of this Warrant.

     “Outstanding Common Stock” of the Company means, as of the date of determination, the
sum (without duplication) of the following: (a) the number of shares of Common Stock then
outstanding at the date of determination, (b) the number of shares of Common Stock then issuable
upon the exercise of this Warrant (as such number of shares may be adjusted pursuant to the terms
hereof) and (c) the number of shares of Common Stock then issuable upon the exercise or conversion
of Convertible Securities and any warrants, options or other rights to subscribe for or purchase
Common Stock or Convertible Securities (but excluding any unvested options and securities not then
exercisable for or convertible into Common Stock).

     “Person” means any individual, firm, corporation, partnership, limited liability
company, joint venture, association, joint stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof, or other entity of any kind and includes
any successor (by merger or otherwise) of such entity.

     “Principal Office” means the Company’s principal office as set forth in Section
14 hereof or such other principal office of the Company in the United States of America the
address of which first shall have been set forth in a notice to the Holder.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the Commission thereunder.

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     11. Delays, Omissions and Indulgences. It is agreed that no delay or omission to
exercise any right, power or remedy accruing to the Holder upon any breach or default of the
Company under this Warrant shall impair any such right, power or remedy, nor shall it be construed
to be a waiver of any such breach or default, or any acquiescence therein, or of or in any similar
breach or default thereafter occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter occurring. It is further
agreed that any waiver, permit, consent or approval of any kind or character on the Holder’s part
of any breach or default under this Warrant, or any waiver on the Holder’s part of any provisions
or conditions of this Warrant must be in writing and that all remedies, either under this Warrant,
or by law or otherwise afforded to the Holder, shall be cumulative and not alternative.

     12. Rights of Transferees. Subject to Section 7, the rights granted to the
Holder hereunder of this Warrant shall pass to and inure to the benefit of all subsequent
transferees of all or any portion of this Warrant (provided that the Holder and any transferee
shall hold such rights in proportion to their respective ownership of this Warrant and Warrant
Shares) until extinguished pursuant to the terms hereof.

     13. Headings. The headings in this Warrant are for convenience of reference only and
shall not limit or otherwise affect the terms of this Warrant. All references made in this Warrant
to “Section” refer to such Section of this Warrant, unless expressly stated otherwise.

     14. 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:

	 	(a)	 	if to the Company:

Origen Financial, Inc.

27777 Franklin Road, Suite 1700

Southfield, MI 48034

Attention: Ronald A. Klein, CEO

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

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	 	(b)	 	if to the Holder:

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

2300 Harmon Road

Auburn Hills, MI 48326

Attn: Jonathan S. Aaron

Fax No.: (248) 340-2308

Phone No.: (248) 340-2396

     15. Successors and Assigns. This Warrant shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns.

     16. Amendments. No provision of this Warrant may be waived, amended or modified
except pursuant to an agreement in writing entered into by the Holder and the Company.

     17. Severability. If any provision of this Warrant 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 Warrant shall remain in full force and effect and shall not be
affected by the illegal, invalid or unenforceable provision or by its severance.

     18. Governing Law. This Warrant shall be governed by and construed in accordance with
the laws of the State of Michigan and the applicable laws of the United States of America.

     19. Acknowledgment. Holder acknowledges and agrees that: (i) Holder has been advised
and understands that a conflict exists between its interest and the interest of the Company; (ii)
Holder has been advised to seek the advice of independent counsel; and (iii) Holder has obtained
the advice of independent counsel or decided not to engage independent counsel.

     20. Entire Agreement. This Warrant is intended by the parties as a final expression
of their agreement and is intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein and therein.

     21. Rules of Construction. Unless the context otherwise requires “or” is not
exclusive, and references to sections or subsections refer to sections or subsections of this
Warrant. All pronouns and any variations thereof refer to the masculine, feminine or neuter,
singular or plural, as the context may require.

[Signature Page Follows]

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     IN WITNESS WHEREOF, the Company has caused this Warrant to be issued and executed in its
corporate name by it’s duly authorized officer as of the date below written.

	 	 	 	 	 
	DATED:  April 8, 2008       	ORIGEN FINANCIAL, INC.

 	 
	 	By:  	/s/ Ronald A. Klein
 	 
	 	 	Ronald A. Klein, 	 
	 	 	Chief Executive Officer 	 
	 

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

 	 
	 	By:  	/s/ William M. Davidson
 	 
	 	 	Its: Trustee 	 
	 	 	 	 
	 

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EXHIBIT A

NOTICE OF EXERCISE

	 	 	 
	To:

	 	Origen Financial, Inc.
	 

	 	27777 Franklin Road
	 

	 	Suite 1700
	 

	 	Southfield, MI 48034

     1. The undersigned, pursuant to the provisions of the attached Warrant, hereby elects to
exercise this Warrant with respect to
                     shares of Common Stock (the “Exercise
Amount”). Capitalized terms used but not otherwise defined herein have the meanings ascribed
thereto in the attached Warrant.

     2. The undersigned herewith tenders payment for such shares in cash.

     3. Please issue a certificate or certificates representing the shares issuable in respect
hereof under the terms of the attached Warrant, as follows:

	 	 	 
	 

	 	 
	 

	 	(Name of Record Holder/Transferee)

and deliver such certificate or certificates to the following address:

	 	 	 
	 

	 	 
	 

	 	(Address of Record Holder/Transferee)

     4. The undersigned represents that the aforesaid shares are being acquired for the account of
the undersigned for investment and not with a view to, or for resale in connection with, the
distribution thereof and that the undersigned has no present intention of distributing or reselling
such shares.

     5. If the Exercise Amount is less than all of the shares of Common Stock purchasable
hereunder, please issue a new warrant representing the remaining balance of such shares, as
follows:

	 	 	 
	 

	 	 
	 

	 	(Name of Record Holder/Transferee)

and deliver such warrant to the following address:

	 	 	 
	 

	 	 
	 

	 	(Address of Record Holder/Transferee)

	 	 	 
	 

	 	 
	 

	 	(Signature)

	 	 	 
	 

(Date)exv4w2

 

Exhibit 4.2

Execution
Version

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into as of
April 8, 2008, by and between Origen Financial, Inc., a Delaware corporation (the
“Company”), and the William M. Davidson Trust u/a/d 12/13/04, (the “Holder”).

     This Agreement is made in connection with the Warrant (together, the “Transaction
Documents”). In order to induce the Holder to enter into the Transaction Documents, the
Company has agreed to provide the registration rights provided for in this Agreement to the Holder.
The execution of this Agreement is a condition to the closing of the transactions contemplated by
the Transaction Documents.

     In consideration of the mutual covenants and agreements set forth herein and for good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereby agree:

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

     “Affiliate” As defined in the Warrant.

     “Agreement” As defined in the Preamble.

     “Business Day” As defined in the Warrant.

     “Commission” The Securities and Exchange Commission.

     “Common Shares” Shares of the common stock of the Company, par value $.01 per
share.

     “Company” As defined in the Preamble.

     “Company Indemnified Parties” As defined in Section 8(b) hereof.

     “Damages” As defined in Section 8(a)(i) hereof.

     “End of Suspension Notice” As defined in Section 7(b) hereof.

     “Exchange Act” The Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated by the Commission pursuant thereto.

     “Holder” As defined in the Preamble.

     “Holder Indemnified Parties” As defined in Section 8(a) hereof.

 

 

     “Indemnified Party” Any one of the Holder Indemnified Parties and the Company
Indemnified Parties.

     “Material Transaction” Any material transaction in which the Company proposes
to engage or is engaged, including a purchase or sale of assets or securities, financing,
merger, consolidation or any other transaction that would require disclosure pursuant to the
Securities Act or Exchange Act, and with respect to which the Company’s Board of Directors
has reasonably determined in good faith that compliance with this Agreement would require
the Company to disclose material, non-public information prior to such time as it would
otherwise be required to be disclosed.

     “NASD” National Association of Securities Dealers, Inc.

     “Person” An individual, partnership, corporation, trust, unincorporated
organization, government or agency or political subdivision thereof, or any other legal
entity.

     “Prospectus” The prospectus included in any Registration Statement, including
any preliminary prospectus, and all other amendments and supplements to any such prospectus,
including post-effective amendments, and all material incorporated by reference or deemed to
be incorporated by reference, if any, in such prospectus.

     “Register,” “Registered” and “Registration” Such terms shall
refer to a registration effected by preparing and filing a Registration Statement in
compliance with the Securities Act and applicable rules and regulations thereunder, and the
declaration or ordering of the effectiveness of such Registration Statement.

     “Registrable Shares” Each of the Shares, upon original issuance thereof, until
(i) the date on which it has been registered effectively pursuant to the Securities Act and
disposed of in accordance with the Registration Statement relating to it, (ii) the date on
which either it is distributed to the public pursuant to Rule 144 or is saleable pursuant to
Rule 144 during any three month period, or (iii) the date on which it is otherwise saleable,
without restriction, pursuant to an available exemption from registration under the
Securities Act.

     “Registration Expenses” Any and all expenses incident to the performance of or
compliance with this Agreement, including without limitation: (i) all Commission, stock
exchange, NASD registration, listing and filing fees, (ii) all fees and expenses incurred in
connection with compliance with federal or state securities or blue sky laws (including any
registration, listing and filing fees and reasonable fees and disbursements of counsel in
connection with blue sky qualification of any of the Registrable Shares and the preparation
of a blue sky memorandum and compliance with the rules of the NASD), (iii) all expenses of
printing, delivering and distributing any Registration Statement, any Prospectus, any
amendments or supplements thereto, any certificates and other documents relating to the
performance of and compliance with this Agreement, (iv) all fees and expenses incurred in
connection with the listing of any of the Registrable Shares

2

 

on any securities exchange or
The Nasdaq Stock Market pursuant to Section 5(l) hereof, (v) the fees and disbursements of counsel for the Company and of the independent public
accountants (including, without limitation, the expenses of any special audit and “cold
comfort” letters required by or incident to such performance) of the Company, (vi) any fees
and disbursements customarily paid by issuers or sellers of securities (including the fees
and expenses of any experts retained by the Company in connection with any Registration
Statement) and (vii) any reasonable fees and expenses of counsel to the Holder; provided,
however, that Registration Expenses shall exclude brokers’ commissions and transfer taxes,
if any, relating to the sale or disposition of Registrable Shares by the Holder.

     “Registration Statement” Any registration statement of the Company, including
the Prospectus, amendments and supplements to such registration statement or Prospectus,
including pre- and post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference, if any, in such
registration statement.

     “Rule 144” Rule 144 promulgated by the Commission pursuant to the Securities
Act, as such rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission as a replacement thereto having substantially the same
effect as such rule.

     “Rule 158” Rule 158 promulgated by the Commission pursuant to the Securities
Act, as such rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission as a replacement thereto having substantially the same
effect as such rule.

     “Rule 424” Rule 424 promulgated by the Commission pursuant to the Securities
Act, as such rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission as a replacement thereto having substantially the same
effect as such rule.

     “Securities Act” The Securities Act of 1933, as amended, and the rules and
regulations promulgated by the Commission thereunder.

     “Shares” The Common Shares issued upon exercise of the Warrant and such other
unregistered Common Shares owned directly or indirectly by the Holder or any of the Holder’s
Affiliates.

     “Suspension Event” As defined in Section 7(b) hereof.

     “Suspension Notice” As defined in Section 7(b) hereof.

     “Transaction Documents” As defined in the Recital.

     “Underwritten Offering” A sale of securities of the Company to an underwriter
or underwriters for reoffering to the public.

3

 

     “Warrant” The Stock Purchase Warrant of even date herewith issued by the
Company to the Holder.

     2. Demand Registration.

     (a) At any time following the execution of this Agreement and the exercise of the
Warrant, the Holder may, by written notice to the Company, request that the Company
Register under the Securities Act all or any portion of the Registrable Shares held by the
Holder for sale in the manner specified in such notice; provided, however, that the Company
shall not be obligated to Register any Registrable Shares pursuant to such request: (i)
subject to Section 3 below, during the period beginning thirty (30) days prior to the
filing, and ending on a date ninety (90) days following the effective date, of a
Registration Statement filed by the Company relating to an Underwritten Offering only of
the Company’s capital stock (other than a Registration Statement for the Company’s capital
stock which does not give rise to incidental registration rights pursuant to Section 3
below); or (ii) if the Company provides a certificate of its Chief Executive Officer
stating that a Material Transaction exists at the time of the request, in which event no
such Registration Statement need be filed until the earlier of the lapse of sixty (60) days
from the issuance of such certificate or the date on which such Material Transaction no
longer exists; provided, however, that the Company may not exercise its right under this
clause (ii) more than twice in any twelve (12)-month period. The Company shall be
obligated to Register Registrable Shares under this Section 2 on one (1) occasion.

     (b) The Company shall be entitled to include in any Registration Statement referred to
in this Section 2 for which the method of distribution is an Underwritten Offering, for
sale in accordance with the method of disposition specified by the Holder, Common Shares to
be sold by the Company for its own account, except as and to the extent that, in the
opinion of the managing underwriter (if such method of disposition shall be an Underwritten
Offering), such inclusion would adversely affect the marketing of the Registrable Shares to
be sold. Except with respect to Registration Statements on Form S-8 (or any successor
form), the Company will not file with the Commission any other registration statement with
respect to its Common Stock, whether for its own account or that of other stockholders,
from the date of receipt of a notice from the Holder pursuant to this Section 2 until the
completion of the period of distribution of the Registration contemplated thereby.

     3. Incidental Registration; Form S-3 Registration. If the Company, at any time
following the exercise of the Warrant (other than pursuant to Section 2 above), proposes to
Register any of its securities under the Securities Act for sale to the public, whether for its own
account or for the account of other security holders or both (except with respect to registration
statements on Form S-8, Form S-4 or another form not available for registering Registrable Stock
for sale to the public), each such time it will give written notice to the Holder of its intention
to do so. Upon the written request of the Holder, given within Twenty (20) days after the date of
any such notice, to Register any of its Registrable Shares (which request shall state the intended
method of disposition thereof), the Company will cause the Registrable Shares as to

4

 

which Registration shall have been so requested to be included in the securities to be covered by
the Registration Statement proposed to be filed by the Company, all to the extent required to
permit the sale or other disposition by the Holder (in accordance with its written request) of such
Registrable Shares so Registered. The Company may withdraw any such Registration Statement before
it becomes effective or postpone the offering of securities contemplated by such Registration
Statement without any obligation to the Holder. In the event that any registration pursuant to
this Section 3 shall be an Underwritten Offering of Common Stock, the Registrable Shares of the
Holder to be included in the registration pursuant to this Section 3 will be included in the
underwriting on the same terms and conditions as the Common Shares otherwise being sold through
underwriters under such Registration. The number Registrable Shares to be included in such an
underwriting may be reduced if and to the extent that the managing underwriter shall be of the
opinion that such inclusion would adversely affect the marketing of the securities to be sold by
the Company. If any Common Shares are to be included in such underwriting for the account of any
Person other than the Holder, the number of Common Shares to be included by any such Person and the
Registrable Shares of the Holder shall be reduced proportionately. Notwithstanding anything to the
contrary contained in this Section 3, in the event that there is an Underwritten Offering of
securities of the Company pursuant to a Registration covering Registrable Shares and the Holder
does not elect to sell its Registrable Shares to the underwriters in connection with such offering,
the Holder shall refrain from selling such Registrable Shares not registered pursuant to this
Section 3 during the period of distribution of the Company’s securities by such underwriters and
the period in which the underwriting syndicate participates in the market; provided, however, that
the Holder shall, in any event, be entitled to sell its Registrable Shares commencing on the 120th
day after the effective date of such Registration Statement. Any Registration under this Section 3
will not be counted as a registration under Section 2 above.

     4. Rule 144 Reporting. With a view to making available the benefits of certain rules
and regulations of the Commission that may at any time permit the sale of the Registrable Shares to
the public without registration, the Company agrees to:

     (a) Make and keep public information available, as those terms are understood and
defined in Rule 144, at all times while the Company is subject to the reporting
requirements of the Exchange Act;

     (b) File with the Commission in a timely manner all reports and other documents required
of the Company under the Securities Act and the Exchange Act (at all times that it is
subject to such reporting requirements); and

     (c) So long as the Holder owns any Registrable Shares, to furnish to the Holder
forthwith upon request a written statement by the Company as to its compliance with the
reporting requirements of said Rule 144 and of the Securities Act and the Exchange Act (at
all times that it is subject to the reporting requirements of the Exchange Act), a copy of
the most recent annual or quarterly report of the Company, and such other reports and
documents of the Company as the Holder may reasonably request in availing itself of any
rule or regulation of the Commission allowing the Holder to sell any such securities
without registration (at all times that the Company is subject to the reporting
requirements of the Exchange Act).

5

 

     5. Registration Procedures. In connection with the obligations of the Company with
respect to any registration pursuant to this Agreement, the Company shall:

     (a) prepare and file with the Commission, as specified in this Agreement, a Registration
Statement, that complies as to form in all material respects with the requirements of the
applicable form and includes all financial statements required by the Commission to be
filed therewith;

     (b) subject to Section 5(i) hereof, prepare and file with the Commission such amendments
and post-effective amendments to each such Registration Statement as may be necessary to
keep such Registration Statement effective for the applicable period, cause each such
Prospectus to be supplemented by any required prospectus supplement, and as so supplemented
to be filed pursuant to Rule 424 or any similar rule that may be adopted under the
Securities Act; and comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by the Registration Statement during the applicable
period in accordance with the intended method or methods of distribution by the Holder;

     (c) furnish to the Holder, without charge, as many copies of each Prospectus, including
each preliminary Prospectus, and any amendment or supplement thereto and such other
documents as the Holder may reasonably request, in order to facilitate the public sale or
other disposition of the Registrable Shares; the Company consents to the use in compliance
with applicable law of any such Prospectus, including each preliminary Prospectus, by the
Holder, if any, in connection with the offering and sale of the Registrable Shares covered
by any such Prospectus;

     (d) use commercially reasonable efforts to register or qualify, or obtain exemption from
registration or qualification for, all Registrable Shares by the time the applicable
Registration Statement is declared effective by the Commission under all applicable state
securities or “blue sky” laws of such jurisdictions as the Holder shall reasonably request
in writing, keep each such registration or qualification or exemption effective during the
period such Registration Statement is required to be kept effective and do any and all
other acts and things that may be reasonably necessary or advisable to enable the Holder to
consummate the disposition in each such jurisdiction of such Registrable Shares owned by
the Holder;

     (e) notify the Holder promptly and, if requested, confirm such advice in writing (i)
when a Registration Statement has become effective and when any post-effective amendments
and supplements thereto become effective, (ii) of the issuance by the Commission or any
state securities authority of any stop order suspending the effectiveness of a Registration
Statement or the initiation of any proceedings for that purpose, and (iii) of the happening
of any event during the period a Registration Statement is effective as a result of which
such Registration Statement or the related Prospectus contains any untrue statement of a
material fact or omits to state any material fact required to be stated therein or
necessary to make the statements therein not misleading, and at the request of the Holder,
promptly to furnish to the Holder a reasonable number of copies of a supplement to or an
amendment of such Prospectus as

6

 

may be necessary so that, as thereafter delivered to the purchaser of such securities, such
Prospectus shall not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading;

     (f) upon request by the Holder, furnish to the Holder copies of any request by the
Commission or any state securities authority of amendments or supplements to a Registration
Statement and Prospectus or for additional information;

     (g) use commercially reasonable efforts to avoid the issuance of, or if issued to obtain
the withdrawal of, any enjoining order suspending the use or effectiveness of a
Registration Statement or the lifting of any suspension of the qualification (or exemption
from qualification) of any of the Registrable Shares for sale in any jurisdiction, at the
earliest possible moment;

     (h) upon request, furnish to the Holder, without charge, at least one conformed copy of
the Registration Statement and any post-effective amendment thereto (without documents
incorporated therein by reference or exhibits thereto, unless requested);

     (i) upon the occurrence of any event contemplated by Section 5(e)(iii) hereof, use
commercially reasonable efforts to prepare a supplement or post-effective amendment to a
Registration Statement or the related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered to the
purchasers of the Registrable Shares, such Prospectus will not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading;

     (j) if requested by the representative underwriters, if any, or the Holder, (i) promptly
incorporate in a prospectus supplement or post-effective amendment such information
relating to the representative of the underwriters, if any, or the Holder as they may
reasonably request be included therein, and (ii) make all required filings of such
prospectus supplement or such post-effective amendment as soon as practicable after the
Company has received notification of the matters to be incorporated in such prospectus
supplement or post-effective amendment; provided, however, that the Company shall not be
required to take any action pursuant to this Section 5 that would, in the opinion of
counsel for the Company, violate applicable law;

     (k) make available for inspection by representatives of the Holder and the
representative of any underwriters participating in any disposition pursuant to a
Registration Statement and any special counsel or accountant retained by such Holder or
underwriters, during normal business hours and upon reasonable notice, all financial and
other records, corporate documents and properties of the Company reasonably related to the
Registration Statement and cause the respective officers, directors and employees of the
Company to supply all information reasonably requested by any such representatives, the
representative of the underwriters, the special counsel or accountants in connection

7

 

with and reasonably related to the Registration Statement; provided, however, that all such
records, documents or information provided by the Company that have not been made generally
available to the public shall be held and treated as confidential by such representatives,
representative of the underwriters, special counsel or accountants and shall not be
disclosed to any other person unless (i) the disclosure of such records, documents or
information is necessary to avoid or correct a misstatement or omission in a Registration
Statement, or (ii) the release of such records, documents or information is ordered pursuant
to a subpoena or other order from a court of competent jurisdiction;

     (l) use commercially reasonably efforts to list all Registrable Shares on each
securities exchange or quotation system on which the Common Shares are then listed or are
contemplated to be listed in such Registration;

     (m) otherwise use commercially reasonable efforts to comply with all applicable rules
and regulations of the Commission and make generally available to its security holders, as
soon as reasonably practicable, earnings statements covering at least 12 months that
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158;

     (n) provide and cause to be maintained a transfer agent for all Registrable Shares
covered by any Registration Statement from and after a date not later than the effective
date of such Registration Statement; and

     (o) in connection with any sale or transfer of Registrable Shares that will result in
such securities no longer being Registrable Shares, cooperate with the Holder and the
representative of the underwriters, if any, to facilitate the timely preparation and
delivery of certificates representing the Registrable Shares to be sold, and to enable such
Registrable Shares to be in such denominations and registered in such names as the
representative of the underwriters, if any, or Holder may request at least two Business
Days prior to any sale of such Registrable Shares.

     6. Certain Covenants of the Holder.

     (a) The Holder acknowledges that the Company may require the Holder, as a condition to
the Company’s obligations pursuant to Sections 2, 3 and 5 hereof, to furnish to the Company
such information regarding itself, the securities of the Company held by it and the
proposed method of distribution by the Holder; and the Holder agrees to provide such
information as the Company may from time to time reasonably request in writing or as shall
be required to effect the Registration of their Registrable Shares. The Holder further
agrees to furnish promptly to the Company in writing all information required from time to
time to make the information previously furnished by the Holder not misleading.

     (b) The Holder agrees that, upon receipt of any notice from the Company of the happening
of any event of the kind described in Section 5(e)(iii) hereof, such Holder will
immediately discontinue disposition of Registrable Shares pursuant to a Registration
Statement until the Holder’s receipt of the copies of the supplemented or amended
Prospectus. If so directed by the Company, the Holder will deliver to the Company (at

8

 

 the expense of the Company) all copies in its possession, other than permanent
file copies then in the Holder’s possession, of the Prospectus covering such Registrable
Shares current at the time of receipt of such notice.

     7. Suspension Period.

     (a) Following the effectiveness of a Registration Statement (and the filings with any
state securities commissions), the Company may direct the Holder to suspend sales of the
Registrable Shares for such times as the Company deems necessary or advisable, including
for up to sixty (60) days in any twelve (12) month period in the case of pending
negotiations relating to, or consummation of, a transaction or the occurrence of an event
(i) that would require additional disclosure of material information by the Company in the
Registration Statement (or such state filings), (ii) as to which the Company has a bona
fide business purpose for preserving confidentiality, or (iii) that renders the Company
unable to comply with Commission requirements, in each case under circumstances that would
make it impractical or inadvisable to cause the Registration Statement (or such state
filings) to become effective, or to promptly amend or supplement the Registration Statement
on a post-effective basis, as applicable.

     (b) In the case of an event that causes the Company to suspend sales by Holders pursuant
to an effective Registration Statement (a “Suspension Event”), the Company may give
notice (a “Suspension Notice”) to the Holder to suspend sales of the Registrable
Shares so that the Company may correct or update the Registration Statement (or such state
filings); provided, however, that such suspension shall continue only for so long as the
Suspension Event or its effect is continuing. The Holder shall not effect any sales of the
Registrable Shares pursuant to such Registration Statement (or such state filings) at any
time after it has received a Suspension Notice from the Company. If so directed by the
Company, the Holder will deliver to the Company all copies of the Prospectus covering the
Registrable Shares held by it at the time of receipt of the Suspension Notice. The Holder
may recommence effecting sales of the Registrable Shares pursuant to the Registration
Statement (or such state filings) following further notice to such effect (an “End of
Suspension Notice”) from the Company, which End of Suspension Notice shall be given by
the Company promptly following the conclusion of any Suspension Event.

9

 

     8. Indemnification and Contribution.

     (a) The Company agrees to indemnify and hold harmless Holder and respective officers,
managers, partners, employees, representatives and agents of the Holder (including any
underwriter or placement agent acting on behalf of Holder) (the “Holder Indemnified
Parties”), as follows:

     (i) from and against any and all loss, claim, liability, damage and expense
whatsoever (collectively, “Damages”), as incurred, arising out of any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement (or any amendment thereto) pursuant to which Registrable
Shares were registered under the Securities Act including all documents incorporated
therein by reference, or the omission or alleged omission to state a material fact
required to be stated therein or necessary to make the statements therein, not
misleading or arising out of any untrue statement or alleged untrue statement of a
material fact contained in any Prospectus (or any amendment or supplement thereto),
including all documents incorporated therein by reference, or the omission or
alleged omission to state a material fact required to be stated therein or necessary
in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading;

     (ii) from and against any and all Damages, as incurred, to the extent of the
aggregate amount paid in settlement of any litigation, or investigation or
proceeding by any governmental agency or body, commenced or threatened, or of any
claim whatsoever, in each case based upon any such untrue statement or omission, if
such settlement is effected with the written consent of the Company (which consent
shall not be unreasonably withheld);

     (iii) from and against any and all expenses whatsoever (including reasonable
fees and disbursements of counsel), as incurred in investigating, preparing or
defending against any litigation, or investigation or proceeding by any governmental
agency or body, commenced or threatened, in each case whether or not a party, or any
claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, to the extent that any such expense is not
paid under subparagraph (i) or (ii) above; and

     (iv) provided that such indemnity pursuant to this Section 8(a) shall not apply
to the Holder with respect to any loss, liability, claim, damage or expense to the
extent arising out of any untrue statement or omission or alleged untrue statement
or omission made in reliance upon and in conformity with written information
furnished to the Company by such Holder expressly for use in a Registration
Statement (or any amendment thereto) or any Prospectus (or any amendment or
supplement thereto).

     (b) The Holder agrees to indemnify and hold harmless the Company, each of its directors
and officers (including each officer of the Company who signed the Registration Statement) and any underwriter (the “Company Indemnified Parties”)

10

 

against any and all Damages described in the indemnity contained in Section 8(a) hereof
(provided, however, that any settlement described in Section 8(a)(ii) hereof is effected
with the written consent of the Holder, which consent shall not be unreasonably withheld),
as incurred, but only with respect to such untrue statement or omission, or alleged untrue
statements or omissions, made in a Registration Statement (or any amendment thereto) or any
Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with
written information furnished to the Company by the Holder expressly for use in such
Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or
supplement thereto). If the Registrable Shares are registered in an Underwritten Offering,
the Holder shall be required to agree to such indemnification provisions as may be required
by the underwriter in connection with such Underwritten Offering.

     (c) Each Indemnified Party shall give reasonably prompt notice to each indemnifying
party of any action or proceeding commenced against it in respect of which indemnity may be
sought hereunder, but failure to so notify an indemnifying party shall not relieve it from
any liability that it may have under this Agreement except to the extent that the
indemnifying party is actually prejudiced by such failure to give notice. If the
indemnifying party so elects within a reasonable time after receipt of such notice, the
indemnifying party may assume the defense of such action or proceeding at such indemnifying
party’s own expense with counsel chosen by the indemnifying party and approved by the
Indemnified Party or parties in such action or proceeding, which approval shall not be
unreasonably withheld; provided, however, that if such Indemnified Party or parties
reasonably determines that a conflict of interest exists where it is advisable for such
Indemnified Party or parties to be represented by separate counsel or that, upon advice of
counsel, there may be legal defenses available to them that are different from or in
addition to those available to the indemnifying party, then the indemnifying party shall
not be entitled to assume such defense and the Indemnified Party or parties shall be
entitled to one separate counsel at the indemnifying party’s expense. If an indemnifying
party is not entitled to assume the defense of such action or proceeding as a result of the
proviso to the preceding sentence, such indemnifying party’s counsel shall be entitled to
conduct such indemnifying party’s defense, and counsel for the Indemnified Party or parties
shall be entitled to conduct the defense of such Indemnified Party or parties, it being
understood that both such counsel will cooperate with each other to conduct the defense of
such action or proceeding as efficiently as possible. If an indemnifying party is not so
entitled to assume the defense of such action or does not assume such defense, after having
received the notice referred to in the first sentence of this paragraph, the indemnifying
party or parties will pay the reasonable fees and expenses of counsel for the Indemnified
Party or parties. In such event, however, no indemnifying party will be liable for any
settlement effected without the written consent of such indemnifying party. No
indemnifying party shall, without the consent of the Indemnified Party, consent to entry of
any judgment or enter into a settlement that does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from
all liability in respect of such claim or litigation. If an indemnifying party is entitled
to assume, and assumes, the defense of such action or proceeding in accordance with this
paragraph, such indemnifying party shall not be liable

11

 

for any fees and expenses for counsel for the Indemnified Parties incurred thereafter in
connection with such action or proceeding.

     (d) The obligations of the Company and the Holder under this Section 8 shall survive the
completion of any offering of Registrable Shares pursuant to a Registration Statement and
otherwise.

     9. Termination of the Company’s Obligations. The Company shall have no obligations
pursuant to this Agreement with respect to any Shares proposed to be sold by the Holder in a
Registration pursuant to this Agreement if, in the opinion of counsel to the Company, all such
Shares proposed to be sold by the Holder are no longer Registrable Shares.

     10. Subsequent Registration Rights. After the date of this Agreement, the Company
may, without the prior written consent of the Holder, enter into an agreement with any holder or
prospective holder of any securities of the Company that would allow such holder or prospective
holder to include, on a pari passu basis, such securities in any registration filed pursuant to
this Agreement or that includes for registration Registrable Shares, and such holder or prospective
holder may include, on a pari passu basis, such securities in any such registration, which may
reduce proportionately the amount of the Registrable Shares of the Holder that is included therein.

     11. [Intentionally Omitted]

     12. Waiver and Amendment. No provision of this Agreement may be waived, amended or
modified except pursuant to an agreement in writing entered into by the Company and the Holder.

     13. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Company and the Holder, and their respective successors and assigns, provided,
however, that (a) the Company may assign its rights or obligations hereunder to any successor to
the Company’s business or with the prior written consent of the Holder, and (b) the Holder may
assign its rights under this Agreement to any transferee of its Shares provided such transferee
agrees to be bound by all of the obligations of the transferring Holder under this Agreement.

     14. 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 the Company:
	 	Origen Financial L.L.C.
	 

	 	 	 	27777 Franklin Road
	 

	 	 	 	Suite 1700
	 

	 	 	 	Southfield, Michigan 48034
	 

	 	 	 	Attention: Ronald A. Klein
	 

	 	 	 	Fax No.: (248) 746-7094

12

 

	 	 	 	 	 
	 

	 	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
	 
	 	 	 	 
	 

	 	If to the Holder:
	 	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

Except as otherwise provided in this Agreement, all such communications shall be deemed to have
been duly given (a) when delivered by hand, if personally delivered, (b) one Business Day after
being timely delivered to a next-day air courier, (c) five Business Days after being deposited in
the mail, postage prepaid, if mailed, (d) when answered back, if telexed, or (e) when receipt is
acknowledged by the recipient’s telecopier machine or otherwise, if telecopied.

     15. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Michigan and the applicable laws of the United States of America.

     16. [Intentionally Omitted]

     17. Severability. If any provision of this Agreement 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 Agreement shall remain in full force and effect and shall not be
affected by the illegal, invalid or unenforceable provision or by its severance.

     18. Counterparts. This 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.

     19. Facsimile Documents, Electronic Documents and Signatures. For purposes of
finalizing this Agreement, 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.

13

 

     20. Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the terms of this Agreement. All references made in this
Agreement to “Section” refer to such Section of this Agreement, unless expressly stated otherwise.

     21. Acknowledgement. The Holder acknowledges and agrees that: (i) it has been advised
and understands that a conflict exists between its interest and the interest of the Company; (ii)
it has been advised to seek the advice of independent counsel; and (iii) it has obtained the advice
of independent counsel or decided not to engage independent counsel.

     22. Expenses. The Company shall pay all Registration Expenses in connection with the
registration of the Registrable Shares pursuant to this Agreement. The Holder shall pay all
broker’s commissions and transfer taxes, if any, related to the sale or disposition of such
Holder’s Registrable Shares pursuant to any Registration Statement.

[SIGNATURE PAGE FOLLOWS]

14

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date
first written above.

	 	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 
	 	 	ORIGEN FINANCIAL, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Ronald A. Klein
	 

	 	 	 	 
	 	 	Name: Ronald Klein

Title: Chief Executive Officer
	 
	 	 	 	 
	 	 	HOLDER:
	 
	 	 	 	 
	 	 	WILLIAM M. DAVIDSON TRUST

U/A/D 12/13/04
	 
	 	 	 	 
	 

	 	By:
	 	/s/ William M. Davidson
	 

	 	 	 	 
	 	 	Name: William M. Davidson
	 

	 	Title:
	 	  Trustee

Signature Page to Registration Rights Agreement

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