Document:

exv10w1

 

EXHIBIT 10.1

SENIOR SECURED LOAN AGREEMENT

     THIS SENIOR SECURED LOAN AGREEMENT (“Loan Agreement”) dated as of September 11, 2007,
sets forth the terms of a financing transaction by and between Origen Financial L.L.C., a Delaware
limited liability company (“Borrower”), and the William M. Davidson Trust u/a/d December
13, 2004 (“Lender”), and certain agreements between the parties related thereto, all as set
forth herein.

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

     1. Bridge Loan. Subject to the terms and conditions set forth in this Loan Agreement
and the other Loan Documents (as hereinafter defined), Lender hereby agrees to lend to Borrower,
and Borrower agrees to borrow from Lender, (i) a senior secured non-convertible bridge loan in the
principal amount of Ten Million and 00/100 Dollars ($10,000,000) (the “Term A Bridge Loan”)
and (ii) a senior secured convertible bridge loan in the principal amount of Five Million and
00/100 Dollars ($5,000,000) (the “Term B Bridge Loan”, and together with the Term A Bridge
Loan, the “Bridge Loan”). The proceeds of the Bridge Loan shall be advanced in a single
aggregate advance of Fifteen Million and 00/100 Dollars ($15,000,000) at the Closing, as
hereinafter defined.

     2. Promissory Notes. The Term A Bridge Loan shall be evidenced by a promissory note
(the “Term A Bridge Loan Note”) in the principal amount of $10,000,000, duly executed by
Borrower and payable to the order of Lender. The Term B Bridge Loan shall be evidenced by a
promissory note (the “Term B Bridge Loan Note”) in the principal amount of $5,000,000, duly
executed by Borrower and Issuer (as defined below) and payable to the order of Lender. The Term A
Bridge Loan Note and the Term B Bridge Loan Note together are referred to herein as the
“Notes”, and are referred to individually as a “Note”. Interest on the outstanding
principal balance of the Notes shall accrue at the rate set forth therein. Payment of principal of
and interest on each Note shall be due and payable at the times, and in accordance with the terms
and conditions, set forth in such Note and in this Loan Agreement. The Notes shall mature and be
finally due and payable in full on the Maturity Date (as defined in each Note). Lender shall have
the right to convert the outstanding principal balance of the Term B Bridge Loan Note into shares
of common stock, $0.01 par value per share (“Common Stock”), of Origen Financial, Inc.,
Borrower’s sole member (“Issuer”), all as provided in the Term B Bridge Loan Note.

     3. Collateral. As collateral security for the indebtedness evidenced by the Notes,
Borrower shall execute and deliver (and shall cause Origen Servicing, Inc. (“OSI”) to
execute and deliver) to Lender concurrently with the funding of the Bridge Loan, a security
agreement acceptable to Lender (the “Security Agreement”) pursuant to which Borrower and
OSI shall pledge and grant a security interest in the Collateral (as defined therein) to Lender as
security for the Indebtedness (as defined therein), including Borrower’s indebtedness to Lender
under the Notes. This Loan Agreement, the Notes, the Security Agreement and all other instruments
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documents evidencing, securing, governing, guaranteeing and/or pertaining to the Bridge Loan
are referred to collectively herein as the “Loan Documents.”

     4. Closing. The closing of the transactions contemplated by this Loan Agreement,
including the funding of the Bridge Loan (the “Closing”), shall take place at 10:00 a.m.,
Eastern time, on September 12, 2007 (the “Closing Date”), at such place as the parties may
agree. At the Closing the parties shall, respectively, make or cause to be made the following
simultaneous deliveries:

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

     (i) the Term A Bridge Loan Note, duly executed on behalf of Borrower;

     (ii) the Term B Bridge Loan Note, duly executed on behalf of Borrower and
Issuer;

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

     (iv) an immediately exercisable five-year warrant, pursuant to which Issuer
will grant to Lender the right to purchase 500,000 shares of Common Stock at an
exercise price of $6.16 per share, subject to proportional adjustment for stock
splits, stock dividends and recapitalizations (the “Warrant”);

     (v) a registration rights agreement, of even date herewith, duly executed on
behalf of Issuer, granting Lender certain registration rights in respect of the
shares of Common Stock issued upon exercise of the Warrant and conversion of the
Term B Bridge Loan Note (the “Registration Rights Agreement”);

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

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

          (b) Lender shall deliver to Borrower:

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

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

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

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

     (v) the Term B Bridge Loan Note, duly executed on behalf of Lender.

     5. Representations and Warranties of Borrower. Borrower hereby represents and
warrants to Lender as follows:

     (a) Organization and Qualification. Borrower is duly organized and validly
existing under the laws of the State of Delaware. Borrower has all requisite power and
authority to carry on its business as currently conducted, other than such failures that
would not reasonably be expected to have a material adverse effect on Borrower’s business,
properties or financial condition (a “Material Adverse Effect”). Borrower is duly
qualified to transact business in each jurisdiction, if any, in which the failure to be so
qualified would reasonably be expected to have a Material Adverse Effect.

     (b) Authorization. As of the Closing, all action on the part of Borrower and
its existing members or managers, Issuer and its board of directors, and OSI and its board
of directors, as applicable, necessary for the authorization, execution and delivery of this
Loan Agreement, the Notes and the Security Agreement and the performance of all obligations
of Borrower hereunder and under the Notes and the Security Agreement shall have been taken,
and this Loan Agreement, the Notes and the Security Agreement, assuming due execution and
delivery by the parties hereto and thereto, will constitute valid and legally binding
obligations of Borrower, enforceable in accordance with their respective terms, subject to:
(i) judicial principles limiting the availability of specific performance, injunctive
relief, and other equitable remedies and (ii) bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect generally relating to or
affecting creditors’ rights.

     (c) Financial Condition. Borrower has delivered to Lender Issuer’s Form 10-Q
for the quarter ended June 30, 2007 (the “Financial Statements”). The Financial
Statements are complete and accurate in all material respects and have been prepared in
accordance with generally accepted accounting principles applied on a consistent basis
throughout the periods indicated, except for matters that are not material either
individually or in the aggregate and except that such Financial Statements do not contain
footnotes required by generally accepted accounting principles and are subject to audit
adjustments. The Financial Statements fairly present the financial condition and operating
results of Issuer, as of the dates and for the periods indicated therein, subject to normal
year-end audit adjustments. Except as disclosed in the Financial Statements, Borrower is
not a guarantor or indemnitor of any other person, firm or corporation. Borrower and Issuer
maintain and will continue to maintain a system of accounting and

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internal controls sufficient to meet the requirements of financial reporting in
accordance with generally accepted accounting principles.

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

     (e) Litigation. There are no actions, suits, proceedings or investigations
pending or, to the best of Borrower’s knowledge, threatened in writing before any court,
administrative agency or other governmental body against Borrower which, if reasonably
determined adversely to Borrower and/or Issuer, would reasonably be expected to have a
Material Adverse Effect. Borrower is not a party or subject to, and none of its assets is
bound by, the provisions of any order, writ, injunction, judgment or decree of any court or
government agency or instrumentality which would reasonably be expected to have a Material
Adverse Effect.

     (f) Intellectual Property. Borrower has sufficient title to and ownership of,
or other rights to use, all copyrights, proprietary rights, trademarks, service marks and
trade names necessary for its business as now conducted, except where the failure to have
the same would not reasonably be expected to have a Material Adverse Effect. Borrower has
not received any written or oral communications alleging that Borrower has violated or, by
conducting its business as proposed, would violate any of the trademarks, service marks,
trade names, copyrights or trade secrets or other proprietary rights of any other person or
entity, except for such violations as would not reasonably be expected to have a Material
Adverse Effect.

     (g) Compliance. Borrower and Issuer are in material compliance with all
applicable United States, state and foreign statutes, laws, regulations and executive
orders, and other United States, state and foreign governmental bodies and agencies having
jurisdiction over its business or properties, including without limitation, environmental
and occupational health and safety laws, and Borrower has not received notice of any
violation of such statutes, laws, regulations or orders which has not been remedied prior to
the date hereof, and is not aware of any acts that could cause such notice or claim, and, to
the best of its knowledge, no material expenditures are or will be required in order to
comply with any such existing statute, law or regulation. Borrower is not in violation of
or in default under any provision of its articles or certificate of formation or
regulations, operating agreement, or other organizational documents, as in effect
immediately prior to the Closing. Borrower is not in default on any obligation for borrowed
money, any purchase money obligation or any other material lease, commitment, contract,
instrument or obligation having or relating to an aggregate principal amount (or, in the
case of any lease or contract, an aggregate payment amount) in excess of $10,000 (either
individually or in the aggregate). The execution, delivery and performance of and
compliance with this Loan Agreement, the Notes and the Security Agreement will not result in
any such violation, be in conflict with or constitute,

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with or without the passage of time or giving of notice, a default under any such
provision, require any consent or waiver under any such provision (other than any consents
or waivers that have been obtained), or result in the creation of any lien, encumbrance or
charge upon any of the properties or assets of Borrower pursuant to any such provision
(other than the security interest and lien created by the Security Agreement or otherwise
under any of the Loan Documents).

     (h) Permits. Borrower has all franchises, permits, licenses, and any similar
authority necessary for the conduct of its business as now being conducted by it, the lack
of which would reasonably be expected to have a Material Adverse Effect. Borrower is not in
default in any material respect under any of such franchises, permits, licenses, or other
similar authority.

     (i) Title to Property and Assets. Borrower has good and defensible title to
the Collateral owned by Borrower and OSI has good and defensible title to the Collateral
owned by OSI (as Collateral is defined and described in the Security Agreement), free and
clear of all liens, charges and encumbrances, except for liens for current taxes and
assessments not yet due and possible minor liens and encumbrances that do not, in any case,
materially detract from the value of the property subject thereto or materially impair the
operations of Borrower, except for the liens granted pursuant to that certain credit
agreement by and between Borrower and JPMorgan Chase Bank, N.A., as successor to Bank One,
NA, dated July 25, 2002, as amended (the “Credit Agreement”), which liens will be
released at the Closing. With respect to any material property and assets it leases,
Borrower is in material compliance with such leases and, to the best of its knowledge, holds
a valid leasehold interest free of all liens, charges or encumbrances, except for such
liens, charges or encumbrances that would not materially impair the operations of Borrower.

     (j) Debt. Except for the Bridge Loan and as contemplated under the Credit
Agreement and that certain agreement with Citigroup Global Markets Realty Corporation
entered into in March 2003, providing for a short-term securitization facility used for
warehouse financing, Borrower has not incurred any indebtedness for money borrowed that is
outstanding.

     (k) Tax Matters. Borrower and Issuer have prepared and filed all United States
federal, state and local income or franchise tax returns, if any, required to be filed by it
or has timely filed for extensions thereof.

     (l) Brokers or Finders. Borrower has not agreed to incur, directly or
indirectly, any liability for brokerage or finders’ fees, investment banker fees, agents’
commissions or other similar charges in connection with this Loan Agreement or any of the
transactions contemplated hereby.

     (m) No Subordination. Except as contemplated by the Credit Agreement, there is
no agreement, indenture, contract or instrument to which Borrower is a party or

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by which Borrower may be bound that requires the subordination in right of payment of
Borrower’s obligations under the Notes to any other obligation of Borrower.

     (n) No Material Adverse Changes. Since June 30, 2007 or as contemplated by
this Loan Agreement, there has not been any change in the assets, liabilities, financial
condition or operating results of Borrower from that reflected in the Financial Statements,
except changes in the ordinary course of business that would not, either individually or in
the aggregate, be reasonably likely to result in a Material Adverse Effect on the assets,
properties, condition (financial or other), affairs or prospects of Borrower.

     (o) Labor Agreements and Actions. Borrower is not aware that any officer or
key employee, or that any group of employees of Borrower, intends to terminate their
employment with Borrower, nor does Borrower have a present intention to terminate the
employment of any of the foregoing. Borrower has complied in all material respects with all
applicable state and federal equal employment opportunity and other laws related to
employment (including without limitation, provisions thereof relating to wages, hours, equal
opportunity, collective bargaining and the payment of social security and other taxes), and
Borrower is not aware that it has any labor relations problems (including without
limitation, any union organization activities, threatened or actual strikes or work
stoppages or material grievances). Borrower is not bound by or subject to (and none of its
assets or properties is bound by or subject to) any written or oral, express or implied,
contract, commitment or arrangement with any labor union.

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

     6. Covenants of Borrower. Borrower hereby agrees with Lender that, until the Bridge
Loan has been repaid in full, Borrower shall comply with each of the following covenants and
agreements:

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

     (b) Accounting Records. Borrower shall maintain adequate books and records in
accordance with generally accepted accounting principles, consistently applied, and permit
any representative of Lender, upon advance request and at any reasonable time during normal
business hours to inspect, audit and examine such books and records, to make copies of the
same, and to inspect the properties of Borrower.

     (c) Compliance. Borrower shall preserve and maintain all licenses, permits,
governmental approvals, rights, privileges and franchises necessary for the conduct of its
business; and comply with the provisions of all material contracts and agreements to which
Borrower is a party and all documents pursuant to which Borrower is organized

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and/or which govern Borrower’s continued existence and with the material requirements
of all laws, rules, regulations and orders of any governmental authority applicable to
Borrower and/or its business.

     (d) Insurance. Borrower shall maintain and keep in force insurance of the
types and in amounts customarily carried in lines of business similar to that of Borrower,
including but not limited to fire, extended coverage, public liability, flood, property
damage and workers’ compensation, and deliver to Lender from time to time at Lender’s
request schedules setting forth all insurance then in effect.

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

     (f) Taxes and Other Liabilities. Borrower and Issuer shall pay and discharge
when due any and all indebtedness, obligations, assessments and taxes, both real or
personal, including without limitation Federal and state income taxes and state and local
property taxes and assessments, except such (i) as Borrower may in good faith contest or as
to which a bona fide dispute may arise, and (ii) for which Borrower has made provision, to
Lender’s reasonable satisfaction, for eventual payment thereof in the event Borrower is
obligated to make such payment.

     (g) Litigation. Borrower shall promptly give notice in writing to Lender of
any litigation pending, or to the knowledge of Borrower, threatened against Borrower and/or
Issuer having or relating to any claim or claims in excess of $500,000 (either individually
or in the aggregate), other than any litigation pending or threatened which is covered in
full by insurance.

     (h) Notice to Lender. Borrower shall promptly (but in no event more than five
(5) days after the occurrence of each such event or matter) give written notice to Lender in
reasonable detail of: (i) the occurrence of any Event of Default, or any condition, event or
act which with the giving of notice or the passage of time or both would constitute an Event
of Default; (ii) any change in the name or the organizational structure of Borrower; (iii)
the occurrence and nature of any Reportable Event or Prohibited Transaction, each as defined
in ERISA, or any funding deficiency with respect to any employee pension benefit plan, as
defined in ERISA; or (iv) any termination or cancellation of any insurance policy which
Borrower is required to maintain, or any uninsured or partially uninsured loss through
liability or property damage, or through fire, theft or any other cause affecting Borrower’s
property in excess of an aggregate of $250,000.

     (i) Further Assurances. At any time or from time to time upon the request of
Lender, Borrower will, at its expense, promptly execute, acknowledge and deliver such
further documents and do such other acts and things as Lender may reasonably request in
order to effect fully the purposes of the Loan Documents. In furtherance and not in

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limitation of the foregoing, Borrower shall take such actions as Lender may reasonably
request from time to time to ensure that Borrower’s obligations under the Loan Documents are
secured by the Collateral (as defined in the Security Agreement).

     7. Confidentiality. Lender expressly acknowledges that it may receive in the future
Confidential Materials (as hereinafter defined), and that disclosure of such Confidential Materials
to parties not a party to this Loan Agreement would cause irreparable harm to Borrower. Except
with the prior written consent of Borrower or as required by law, none of Lender nor its Affiliates
(as defined in the Warrant) shall (i) disclose any Confidential Materials to any party not a party
to this Loan Agreement, or (ii) use any Confidential Materials for any purpose except in connection
with the transactions contemplated by this Loan Agreement. In the event that Lender concludes that
it is legally obligated to disclose any Confidential Materials, it shall provide Borrower with
prompt written notice sufficient to give Borrower a reasonable opportunity to seek to prevent or
limit the disclosure of such Confidential Materials. In the case of legal proceedings in which such
disclosure is required, Lender shall cooperate with Borrower to obtain an appropriate protective
order limiting the disclosure of such material, at Borrower’s expense.

     “Confidential Materials” means any information or materials, whether written or oral,
tangible or intangible, concerning Borrower, its subsidiaries, businesses, markets, products,
prospects, finances, principal stockholders and/or members. Notwithstanding the foregoing,
Confidential Materials shall not include (A) information that is or becomes generally known to the
public at large other than as a result of a breach of this Loan Agreement by Lender or its
Affiliates (as defined in the Warrant); (B) information acquired by Lender independently from a
third party (other than a third party which Lender knows, or has reason to know, is under an
obligation of confidentiality with respect to such information); and (C) information independently
developed by Lender and not as a result of the disclosure of information or provision of materials
by Borrower. The Confidential Materials may include, but are not necessarily limited to, the
following: data; documentation; research and development; advertising plans; distribution networks;
new product or service concepts; processes; marketing procedures; “know-how”; marketing techniques
and materials; development plans; names and other information related to strategic partners,
suppliers, or vendors; pricing policies and strategic, business or financial information, including
business plans and financial pro formas.

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

     (a) The occurrence of an Event of Default under, and as defined in, the Security
Agreement;

     (b) Failure of Borrower to pay (i) when due principal of the Bridge Loan, whether at
stated maturity, by acceleration or otherwise; or (ii) any installment of interest on the
Bridge Loan within ten (10) days after the date due;

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     (c) Failure of Borrower to perform or comply with any term or condition contained in
Section 6 hereof and such failure shall not have been remedied or waived within ten (10)
days after the receipt by Borrower of notice from Lender of such failure;

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

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

     (f) The failure of Borrower to timely and properly observe, keep or perform any
covenant, agreement, representation, warranty or condition contained herein or in any of the
other Loan Documents and such failure is not cured within ten (10) days after written notice
from Lender specifying such default;

     (g) Any money judgment, writ or warrant of attachment or similar process involving (i)
in any individual case an amount in excess of $500,000 or (ii) in the aggregate at any time
an amount in excess of $1,000,000 (in either case to the extent not adequately covered by
insurance as to which a solvent and unaffiliated insurance company has acknowledged
coverage) shall be entered or filed against Borrower or any of its assets and shall remain
undischarged, unvacated, unbonded or unstayed for a period of sixty (60) days (or in any
event later than five days prior to the date of any proposed sale thereunder); or

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

     9. Remedies. Upon the occurrence of any Event of Default, Lender may, at its option,
without further notice or demand, (i) declare the outstanding principal balance of and accrued but
unpaid interest on the Notes at once due and payable (provided, however, upon the

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occurrence of any Event of Default described in Section 8(d) above, then all outstanding
principal and accrued but unpaid interest under the Notes shall immediately become due and payable
together with all other amounts payable under the Loan Documents without presentment, demand,
protest or notice of any kind), (ii) foreclose all liens securing payment hereof, (iii) pursue any
and all other rights, remedies and recourses available to the Lender hereof, including but not
limited to any such rights, remedies or recourses under the Loan Documents, at law or in equity, or
(iv) pursue any combination of the foregoing. So long as an Event of Default has occurred and is
continuing, the unpaid principal balance of the Notes shall continue to bear interest at the
Default Rate, as set forth in the Notes. The acceptance by the Lender of any payment under the
Notes which is less than the payment in full of all amounts due and payable at the time of such
payment shall not (i) constitute a waiver of or impair, reduce, release or extinguish any right,
remedy or recourse of the holder hereof, or nullify any prior exercise of any such right, remedy or
recourse, or (ii) impair, reduce, release or extinguish the obligations of any party liable under
any of the Loan Documents as originally provided herein or therein.

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

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

     12. Successors and Assigns. This Loan Agreement shall be binding upon and inure to
the benefit of Lender and Borrower, and their respective successors and assigns, provided, however,
that (a) Borrower may not, without the prior written consent of Lender, assign any rights, powers,
duties or obligations under this Loan Agreement or any of the other Loan Documents, and (b) Lender
may not, without the prior written consent of Borrower, assign any rights, powers, duties or
obligations under this Loan Agreement or any of the other Loan Documents; provided that Lender may
assign its rights, powers, duties or obligations under this Loan Agreement and any of the other
Loan Documents to any Affiliate (as defined in the Warrant) of Lender without Borrower’s consent.

     13. 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

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notice actually received by the other party, or by fax transmission with a confirmation of
receipt generated by the sender’s facsimile machine:

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	 	If to Borrower:
	 	Origen Financial L.L.C.

27777 Franklin Road

Suite 1700

Southfield, Michigan 48034

Attention: Ronald A. Klein

	 

	 	 	 	Fax No.: (248) 746-7094

Phone No.: (248) 746-7000
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Origen Financial, Inc.

27777 Franklin Road

Suite 1700

Southfield, Michigan 48034

Attention: Ronald A. Klein

	 

	 	 	 	Fax No.: (248) 746-7094

Phone No.: (248) 746-7000
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Jaffe, Raitt, Heuer & Weiss, PC

27777 Franklin Road

Suite 2500

Southfield, Michigan 48034

Attention: Peter Sugar

	 

	 	 	 	Fax. No.: (248) 351-3082

Phone No.: (248) 351-3000
	 
	 	 	 	 
	 

	 	If to Lender:
	 	William M. Davidson Trust u/a/d 12/13/04

2300 Harmon Road

Auburn Hills, Michigan 48326

Attention: Jonathan S. Aaron

	 

	 	 	 	Fax No.: (248) 340-2308

Phone No.: (248) 340-2396

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

     15. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS LOAN AGREEMENT OR THE

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TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS LOAN AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

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

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

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

     19. No Reliance. Lender hereby acknowledges and agrees that all information and/or
documentation furnished by or on behalf of Borrower, including without limitation in the
representations and warranties of Borrower contained in this Loan Agreement, has been furnished to
Lender solely by Borrower without review or verification on the part of any other party.

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

13

 

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

[Signatures contained on following page]

14

 

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

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BORROWER:	 	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ORIGEN FINANCIAL, L.L.C.	 	 	 	WILLIAM M. DAVIDSON TRUST U/A/D 12/13/04	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Ronald A. Klein	 	 	 	By:	 	/s/ William M. Davidson	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Ronald A. Klein
	 	 	 	 	 	Name:
	 	William M. Davidson	 	 
	 

	 	Title:
	 	Manager
	 	 	 	 	 	Title:
	 	Trustee	 	 

	 	 	 	 	 
	 
	Acknowledged by:

ISSUER:

ORIGEN FINANCIAL, INC.

 	 	 
	By:  	 	/s/ Ronald A. Klein
 	 
	 	 	Name:  Ronald A. Klein	 	 
	 	 	Title:   Chief Executive Officer	 	 
	 

15exv10w2

 

EXHIBIT 10.2

SECURITY AGREEMENT

     THIS SECURITY AGREEMENT (“Agreement”) is made as of September 11, 2007, 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
Servicing, Inc., a Delaware corporation (“Servicer”, and together with Debtor, each a
“Pledgor” and together the “Pledgors”), 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. 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, as 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 servicing and/or sub-servicing fees payable to
such 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 the Senior Secured Loan
Agreement of even date herewith (the “Loan Agreement”) between Debtor
and Secured Party; (ii) all indebtedness, liabilities and obligations of Debtor
to Secured Party now existing or hereafter arising under the Senior Secured
Promissory Note of even date herewith, in the aggregate original principal
amount of $10,000,000 (the “Term A Bridge Loan Note”), payable to
Secured Party, and the Senior Secured Convertible Promissory Note of even date
herewith, in the aggregate original principal amount of $5,000,000 (the
“Term B Bridge Loan Note”), 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; (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
Agreement, this Agreement, the Term A Bridge Loan Note, the Term B Bridge Loan
Note, 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.
	 
	 	(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 the Collateral free and clear of all liens, security interests,
encumbrances or adverse claims, except for the security interest created by
this Agreement and except as otherwise disclosed in writing to Secured Party
prior to the date of this Agreement. No dispute, right of setoff, counterclaim
or defense exists that, if decided adversely to Pledgor, would adversely affect

2

 

	 	 	 	Pledgor’s title to all or any part of 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 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 material agreement, judgment,
license, order or permit applicable to or binding upon Pledgor, 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.

3

 

	 	(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 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.

     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
Agreement, 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 for
financing statements filed in connection with leases of equipment.
	 
	 	(b)	 	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.

4

 

     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 of an Event of Default, to take any action and to execute any
instrument that Secured Party may deem necessary or appropriate 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.

     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
written notice by Secured Party to the Pledgors thereof; or
	 
	 	(b)	 	Default Under Loan Agreement. The occurrence of an
Event of Default under the Loan Agreement; or
	 
	 	(c)	 	Default Under Notes. The occurrence of an Event of
Default under the Term A Bridge Loan Note or the Term A Bridge Loan Note,
including, but not limited to, a default by Debtor to pay principal or interest
thereunder when due; or
	 
	 	(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

5

 

	 	(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. 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. If an Event of Default shall have occurred and be
continuing, Secured Party shall have the rights and remedies provided in this Section.

	 	(a)	 	Remedies. 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 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 the Secured Party), Secured Party shall be
entitled to collect and retain 100% of the proceeds received from the sale of
the Collateral until the Term A Bridge Loan Note, and all accrued but unpaid
interest thereon, and the Term B Bridge Loan Note, and all accrued but unpaid
interest thereon, is paid in full.
	 
	 	(b)	 	Deficiency. 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.
	 
	 	(c)	 	Other Recourse. 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

6

 

	 	 	 	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.
	 
	 	9.	 	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 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

7

 

	 	 	 	in connection with the enforcement of any of the rights of Secured Party
under the Loan Documents 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)	 	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.
	 
	 	(h)	 	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 in the Loan Agreement 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.
	 
	 	(i)	 	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.
	 
	 	(j)	 	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.

8

 

	 	(k)	 	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.
	 
	 	(l)	 	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.
	 
	 	(m)	 	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.

[Signature Page Follows]

9

 

This 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
	 
	 
	SERVICER:

ORIGEN SERVICING, INC.

 	 	 
	By:  	 	/s/ Ronald A. Klein 	 	 
	 	 	Name:  	 	Ronald A. Klein 	 	 
	 	 	Title:  	 	Chief Executive Officer and President 	 	 
	 

Signature page to Security Agreement

10

 

	 	 	 	 	 

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

11

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