Document:

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                                                                    EXHIBIT 10.4

                        1,000,000 SHARES OF COMMON STOCK

                                       OF

                             ORIGEN FINANCIAL, INC.

                           PRIVATE PLACEMENT AGREEMENT

                             DATED FEBRUARY 4, 2004

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         THIS AGREEMENT is made as of February 4, 2004 among Origen Financial,
Inc., a Delaware corporation (the "Company"), and DB Structured Finance
Americas, LLC, a Delaware limited liability company (the "Purchaser").

                                R E C I T A L S:

         WHEREAS, the Company completed an offering (the "First 144A Offering")
of shares of its common stock, $.01 par value per share ("Common Stock"), to
certain "qualified institutional buyers" as defined in Rule 144A promulgated
under the Securities Act of 1933 (the "Securities Act" or the "Act") on October
8, 2003, and

         WHEREAS, the Company desires to sell to the Purchaser and the Purchaser
desires to purchase from the Company in a new offering (the "Second 144A
Offering") an aggregate of 1,000,000 shares (the "Shares") of Common Stock of
the Company, for a purchase price per share equal to the price per share to the
investors in the First 144A Offering upon the terms and conditions hereinafter
set forth.

         NOW, THEREFORE, the parties hereto agree as follows:

         1. Purchase and Sale of Shares. The Purchaser hereby agrees to purchase
from the Company and the Company hereby agrees to issue and sell the Shares to
Purchaser at a purchase price of $10.00 per share, at the Closing as defined in
Section 2.C. below.

         2. Matters Relating to the Purchased Stock.

                  A. Sale of Shares. The Shares will be offered and sold to the
Purchaser without registration under the Act, in reliance on an exemption
pursuant to Section 4(2) under the Act and Rule 506 of Regulation D promulgated
thereunder. The Company has prepared an offering memorandum, dated October 7,
2003, and as supplemented by a letter from Ronald Klein to the Investors dated
December 22, 2003 (together, referred to as the "Offering Memorandum"), setting
forth information regarding the Company and the Shares. Any references herein to
the Offering Memorandum shall be deemed to include all documents incorporated by
reference therein and all amendments and supplements thereto. Subject to the
provisions of Section 5(WW) below, the Purchaser hereby acknowledges and agrees
that the Offering Memorandum speaks only as of the date thereof and that the
information contained therein may not be correct as of any time subsequent to
that date.

                  B. Authorization. On or before the Closing, the Company will
have authorized the issuance and sale to the Purchaser of the Shares.

                  C. Purchase and Sale. At the Closing, the Company shall sell
to the Purchaser and, subject to the terms and conditions set forth herein, the
Purchaser shall purchase from the Company the Shares for an aggregate purchase
price of $10,000,000.

                  D. Closing. The closing of the purchase and sale of the Shares
(the "Closing") will take place at the offices of Jaffe, Raitt, Heuer & Weiss,
Professional Corporation, One Woodward Avenue, Suite 2400, Detroit, Michigan, on
February 4, 2004 or at such other place or on such other date as may be mutually
agreeable to the Company and the Purchaser. At

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the Closing, the Company will deliver to the Purchaser a stock certificate
evidencing the Shares, registered in the Purchaser's or its nominee's name, upon
payment of the purchase price thereof by a cashier's or certified check, or by
wire transfer of immediately available funds to the Company's account per the
Company's instructions.

         3. Conditions of Purchaser's Obligation at the Closing. The obligation
of the Purchaser to purchase and pay for the Shares at the Closing is subject to
the satisfaction as of the Closing of the following conditions:

                  A. The Purchaser shall not have discovered and disclosed to
the Company on the Closing that the Offering Memorandum or any amendment or
supplement thereto contains an untrue statement of a fact that, in the opinion
of its counsel, is material or omits to state a fact that and, in the opinion of
such counsel, is material and is required to be stated therein or is necessary
to make the statements therein not misleading.

                  B. All corporate proceedings and other legal matters incident
to the authorization, form and validity of this Agreement, the Shares, the
Registration Rights Agreement dated as of the date hereof between the Company
and the Purchaser (the "Registration Agreement") and the Offering Memorandum,
and all other legal matters relating to this Agreement and the transactions
contemplated hereby shall be reasonably satisfactory in all material respects to
counsel for the Purchaser, and the Company shall have furnished to such counsel
all documents and information that they may reasonably request to enable them to
pass upon such matters.

                  C. Neither the Company nor any of its subsidiaries shall have
sustained, since the date of the latest audited financial statements included in
the Offering Memorandum, any material loss or interference with its business
from fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action, order or
decree, otherwise than as set forth or contemplated in the Offering Memorandum;
and, since such date, there shall not have been any change in the stockholders'
equity or in the long-term debt of the Company or any of its subsidiaries
(except for an additional securitization under the securitization arrangement
with Citigroup Global Markets Realty Corp. on or about November 1, 2003 and
except the changes that are not material, either individually or in the
aggregate, under the Credit Agreement between Bank One, N.A., and Origen
Financial L.L.C., dated July 25, 2002, as amended (the "Credit Agreement")), or
material adverse change, in or affecting the management, condition, financial or
otherwise, stockholders' equity, results of operations, business or prospects of
the Company and its subsidiaries, taken as a whole or any development involving
a prospective adverse change that is, in the judgment of the Purchaser,
sufficiently material and adverse as to make it impracticable or inadvisable to
proceed with the offering and delivery of the Shares being delivered on the
Closing on the terms and in the manner contemplated hereby.

                  D. The Company shall have furnished or caused to be furnished
to the Purchaser on the Closing certificates of officers of the Company
satisfactory to the Purchaser as to the accuracy of the representations and
warranties of the Company herein at and as of the Closing, as to the performance
by the Company of all of its obligations hereunder to be

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performed at or prior to the Closing Date and as to such other matters as the
Purchaser may reasonably request.

                  E. The Company shall have executed and delivered to the
Purchaser the Registration Agreement.

                  F. The Company shall have delivered to the Purchaser all of
the following documents:

                           (i) an officer's certificate, dated the date of the
         Closing, signed by the chairman, chief executive officer, president or
         vice president of the Company, stating that the conditions specified in
         Sections 3(A) through 3(E), inclusive, have been fully satisfied;

                           (ii) copies of the resolutions duly adopted by the
         Company's board of directors authorizing the execution, delivery, and
         performance of this Agreement, and the issuance and sale of the Shares;

                           (iii) copies of the Company's Second Amended and
         Restated Certificate of Incorporation, as amended, and the Company's
         bylaws, each as in effect at the Closing;

                           (iv) copies of all material third party and
         governmental consents, approvals, and filings obtained in connection
         with the transactions hereunder (including, without limitation, all
         blue sky law filings and waivers of all preemptive rights and rights of
         first refusal), if any; and

                           (v) copies of the Offering Memorandum.

                  G. All corporate and other proceedings taken or required to be
taken in connection with the transactions contemplated hereby to be consummated
at or prior to the Closing and all documents incident thereto shall be
satisfactory in form and substance to counsel to the Purchaser.

                  H. The Purchaser shall have received from Jaffe, Raitt, Heuer
& Weiss, Professional Corporation, counsel for the Company, an executed copy of
its opinion to the Purchaser, dated the date of the Closing, in the form
attached hereto as Exhibit A.

         4. Conditions of the Company's Obligation at the Closing. The
obligation of the Company to deliver the Shares against payment therefore at the
Closing is subject to the satisfaction as of the Closing of the following
conditions:

                  A. The Purchaser shall have furnished to the Company at the
Closing certificates satisfactory to the Company as to the accuracy of the
representations and warranties of the Purchaser herein at and as of the Closing,
as to the performance by the Purchaser of all of its obligations hereunder to be
performed at or prior to the Closing and as to such other matters as the Company
may reasonably request.

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                  B. The Purchaser shall have executed and delivered the
Registration Agreement.

                  C. The Purchaser shall have delivered the purchase price for
the Shares.

         5. Representations and Warranties of the Company. As a material
inducement to the Purchaser to enter into this Agreement and purchase the
Shares, the Company hereby represents and warrants that:

                  A. No form of general solicitation or general advertising
within the meaning of Regulation D (including, but not limited to,
advertisements, articles, notices or other communications published in any
newspaper, magazine or similar medium or broadcast over television or radio, or
any seminar or meeting whose attendees have been invited by any general
solicitation or general advertising) was used by the Company, any of its agents,
affiliates or representatives or any other person acting on its behalf in
connection with the offer and sale of the Shares or the shares of Common Stock
in the First 144A Offering.

                  B. No form of general solicitation or general advertising was
used by the Company, any of its agents, affiliates or representatives or any
other person acting on its behalf with respect to shares of Common Stock sold
outside the United States to non-U.S. persons (as defined in Rule 902 under the
Act), by means of any directed selling efforts within the meaning of Rule 902
under the Act, and the Company, any affiliate of the Company and any person
acting on its or their behalf has complied with and will implement the "offering
restrictions" required by Rule 902.

                  C. Set forth on Schedule 5(C) hereto is a list of each
employee pension or benefit plan with respect to which the Company or any person
considered an affiliate of the Company (within the meaning of Section 407(d)(7)
of the Employee Retirement Income Security Act of 1974, as amended, including
the regulations and published interpretations thereunder ("ERISA")) is a party
in interest or disqualified person.

                  D. The Company is an "operating company" as defined in the
"plan assets" regulation (29 C.F.R.ss.2510.3-101) promulgated by the U.S.
Department of Labor under ERISA.

                  E. The Company does not provide services to any (i) "employee
benefit plan" (as defined in Section 3(3) of ERISA) that is subject to the
provisions of Title I of ERISA, (ii) plan described in Section 4975(e)(1) of the
Internal Revenue Code of 1986, as amended, including the regulations and
published interpretations thereunder (the "Code"), or (iii) entity whose
underlying assets include "plan assets" by reason of an employee benefit plan's
or other plan's investment in such entity, including entities such as collective
investment funds and insurance company separate accounts whose underlying assets
include assets of such plans.

                  F. The Company and each of its subsidiaries is in compliance
in all material respects with all presently applicable provisions of ERISA; no
"reportable event" (as defined in ERISA) has occurred with respect to any
"pension plan" (as defined in ERISA) for which the Company would have any
liability; the Company and each of its subsidiaries has not incurred and does
not expect to incur liability under (i) Title IV of ERISA with respect to
termination of, or withdrawal from, any "pension plan" or (ii) Sections 412 or
4971 of the Code; and each

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"pension plan" for which the Company or any of its subsidiaries would have any
liability that is intended to be qualified under Section 401(a) of the Code is
so qualified in all material respects and nothing has occurred, whether by
action or by failure to act, which would cause the loss of such qualification.

                  G. No order or decree preventing the use of the Offering
Memorandum, or any order asserting that the transactions contemplated by this
Agreement are subject to the registration requirements of the Act has been
issued and no proceeding for that purpose has commenced or is pending, or to the
knowledge of the Company, is contemplated.

                  H. The Offering Memorandum as of the Closing, will not contain
any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements made
therein, in light of the circumstances under which they were made, not
misleading, except that this representation and warranty does not apply to
statements in or omissions from the Offering Memorandum made in reliance upon
and in conformity with information relating to the Purchaser furnished to the
Company in writing by or on behalf of the Purchaser expressly for use therein.

                  I. The market-related and customer-related data and estimates
in the Offering Memorandum are based on or derived from sources that the Company
believes to be reliable and accurate.

                  J. The Company and each of its subsidiaries have been duly
incorporated or formed and are validly existing as corporations or limited
liability companies in good standing under the laws of their respective
jurisdictions of incorporation or formation, are duly qualified to do business
and are in good standing as foreign corporations or limited liability companies
in each jurisdiction in which their respective ownership or lease of property or
the conduct of their respective businesses requires such qualification (except
such failures to qualify as are not, either individually or in the aggregate,
material to the Company and its subsidiaries taken as a whole), and have all
power and authority necessary to own or hold their respective properties and to
conduct the businesses in which they are engaged; and none of the subsidiaries
of the Company (other than Origen Financial L.L.C.) is a "significant
subsidiary," as such term is defined in Rule 405 of the rules and regulations
promulgated under the Act (the "Rules and Regulations").

                  K. The Company has an authorized capitalization as set forth
in the Offering Memorandum, and all of the issued shares of capital stock of the
Company have been duly authorized and validly issued and are fully paid and
non-assessable; and all of the issued equity securities of each subsidiary of
the Company have been duly and validly authorized and issued and are fully paid
and non-assessable and except as set forth in the Offering Memorandum are owned
directly or indirectly by the Company, free and clear of all liens,
encumbrances, equities or claims.

                  L. The Company has all requisite corporate power and authority
to issue and sell the Shares. The Shares have been duly authorized by the
Company and, upon issuance thereof, will be validly issued, fully paid and
non-assessable.

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                  M. The Shares will conform to the description thereof in the
Offering Memorandum.

                  N. The Company has all requisite corporate power and authority
to enter into the Registration Statement. The Registration Agreement has been
duly authorized by the Company and when executed and delivered by the Company in
accordance with the terms thereof, and is the legally valid and binding
obligation of the Company in accordance with the terms thereof, will be validly
executed and delivered and will be the legally valid and binding obligation of
the Company in accordance wit the terms thereof, enforceable against the Company
in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium and other similar laws
relating to or affecting creditor's rights generally, or by general equitable
principles.

                  O. [Intentionally Omitted]

                  P. The Company has all requisite corporate power and authority
to enter into this Agreement. This Agreement has been duly authorized, executed
and delivered by the Company.

                  Q. The issue and sale of the Shares and the compliance by the
Company with all of the provisions of the Registration Agreement and this
Agreement and the consummation of the transactions contemplated hereby and
thereby (i) will not conflict with or result in a breach or violation of any of
the terms or provisions of, or constitute a default under, any indenture,
mortgage, deed of trust, loan agreement, lease or other agreement or instrument
to which the Company or any of its subsidiaries is a party or by which the
Company or any of its subsidiaries is bound or to which any of the property or
assets of the Company or any of its subsidiaries is subject, (ii) will not
result in any violation of the provisions of the charter or by-laws of the
Company or any of its subsidiary's formation documents or (iii) will not violate
any statute or any order, rule or regulation of any court or governmental agency
or body having jurisdiction over the Company or any of its subsidiaries or any
of their properties or assets; and no consent, approval, authorization or order
of, or filing, registration or qualification with any such court or governmental
agency or body is required for the issue and sale of the Shares or the
consummation by the Company of the transactions contemplated by this Agreement
or the Registration Agreement, except for the filing of a registration statement
by the Company with the Securities and Exchange Commission (the "Commission")
pursuant to the Act as required by the Registration Agreement and such consents,
approvals, authorizations, orders, filings, registrations or qualifications as
may be required under state securities or Blue Sky laws in connection with the
purchase and distribution of the Shares by the Company and the Purchaser.

                  R. Other than the Registration Agreement and the Registration
Rights Agreement dated October 8, 2003 entered into in connection with the First
144A Offering, there are no contracts, agreements or understandings between the
Company and any person granting such person the right to require the Company to
file a registration statement under the Act with respect to any securities of
the Company owned or to be owned by such person or to require the Company to
include such securities in the securities registered pursuant to the
Registration Agreement or in any securities being registered pursuant to any
other registration statement filed by the Company under the Act.

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                  S. Except as described in the Offering Memorandum, from the
date of its incorporation, none of the Company or any other person acting on
behalf of the Company has offered or sold to any person any shares of Common
Stock, or any securities of the same or a similar class as the shares of Common
Stock, other than (A) Shares offered and sold to the Purchaser hereunder, (B)
the shares of Common Stock sold pursuant to that certain Purchase Agreement
between the Company and Lehman Brothers Inc., dated October 8, 2003, and
Concurrent Private Placement Agreement between the Company and the purchasers
named therein dated October 8, 2003, (C) 182,500 restricted Shares issued under
the Company's 2003 Equity Incentive Plan (the "Incentive Plan") to executive
officers of the Company on October 8, 2003, and (D) 207,000 restricted Shares
issued under the Incentive Plan to employees of the Company on January 29, 2004.

                  T. Neither the Company nor any of its subsidiaries has
sustained, since the date of the latest audited financial statements included in
the Offering Memorandum, any material loss or interference with its business
from fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action, order or
decree, otherwise than as set forth or contemplated in the Offering Memorandum;
and, since such date, there has not been any change in the stockholders' equity
or in the long-term debt of the Company or any of its subsidiaries (except for
changes that are not material, either individually or in the aggregate, under
the Credit Agreement or any material adverse change, or any development
involving a prospective material adverse change, in or affecting the management,
condition, financial or otherwise, stockholders' equity, results of operations,
business or prospects of the Company and its subsidiaries, taken as a whole (a
"Material Adverse Effect") otherwise than as set forth or contemplated in the
Offering Memorandum.

                  U. The financial statements (including the related notes and
supporting schedules) included in the Offering Memorandum present fairly the
financial condition and results of operations of the entities purported to be
shown thereby, at the dates and for the periods indicated (except, with respect
to the unaudited financial statements, for certain normal recurring adjustments)
and have been prepared in conformity with generally accepted accounting
principles applied on a consistent basis throughout the periods.

                  V. Grant Thornton LLP, who have certified certain financial
statements of the Company, whose report appears in the Offering Memorandum are
independent public accountants as required by the Act and the Rules and
Regulations during the periods covered by the financial statements on which they
reported.

                  W. None of the Company or any of its subsidiaries owns any
real property. The Company and each of its subsidiaries has good and marketable
title to all personal property owned by them, free and clear of all liens,
encumbrances and defects except such as are described in the Offering Memorandum
and such as do not materially affect the value of the property of the Company
and its subsidiaries taken as a whole and do not materially interfere with the
use made and proposed to be made of such property by the Company or any of its
subsidiaries; and all real property and buildings held under lease by the
Company or any of its subsidiaries are held by them under valid, subsisting and
enforceable leases, with such exceptions as are not material and do not
interfere with the use made and proposed to be made of such property and
buildings by the Company or any of its subsidiaries.

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                  X. The Company and each of its subsidiaries carry, or are
covered by, insurance in such amounts and covering such risks as is adequate for
the conduct of their respective businesses and the value of their respective
properties and as is customary for companies engaged in similar businesses in
similar industries.

                  Y. Except as described in the Offering Memorandum, the Company
and each of its subsidiaries own or possess adequate rights to use all material
patents, trademarks, service marks, trade names, copyrights, applications and/or
registrations for any of the foregoing, and trade secrets (collectively,
"Intellectual Property Rights") and licenses to Intellectual Property Rights
necessary for the conduct of their respective businesses. Except as described in
the Offering Memorandum, the conduct of the respective businesses of the Company
and each of its subsidiaries do not and will not infringe on or conflict with,
and the Company and each of its subsidiaries have not received any notice of any
claim of infringement of or conflict with, any Intellectual Property Rights of
others. There are no pending, or, to the knowledge of the Company, threatened
claims against any of the Company or its subsidiaries alleging that any of the
intellectual property rights used or held for use by the Company or its
subsidiaries (collectively, the "Company Intellectual Property Rights") or the
operation of the business, infringes or conflicts with the rights of others
under any intellectual property rights ("Third Party Rights"). No current or
former employee or consultant of the Company or any of its subsidiaries owns any
rights in or to any of the Company Intellectual Property Rights. The Company and
each of its subsidiaries has taken all reasonable security measures to protect
the secrecy, confidentiality and value of all trade secrets owned by the Company
or the respective subsidiary or used or held for use by the Company or the
subsidiary in the respective business.

                  Z. Except as described in the Offering Memorandum, there are
no legal or governmental proceedings pending to which the Company or any of its
subsidiaries is a party or of which any property or assets of the Company or any
of its subsidiaries is the subject that, if determined adversely to the Company
or any of its subsidiaries, could have a Material Adverse Effect, and to the
best of the Company's knowledge, no such proceedings are threatened or
contemplated by governmental authorities or threatened by others.

                  AA. Except as set forth on Schedule 5(AA), there are no
contracts or other documents that would be required to be filed as exhibits to a
Company registration statement pursuant to Item 601(10) of Regulation S-K that
have not been described in the Offering Memorandum.

                  BB. Except for an agreement by Sun Communities, Inc. to
indemnify ACE-USA/ACE Bond Services and its affiliates ("Surety") in connection
with the issuance by Surety on behalf of the Company of bonds and undertakings
required by various state licensing authorities as a condition to the issuance
of certain licenses to the Company, no relationship, direct or indirect, that
would be required to be described in a Company registration statement pursuant
to Item 404 of Regulation S-K, exists between or among the Company or any of its
subsidiaries on the one hand, and the directors, officers, stockholders,
customers or suppliers of the Company or any of its subsidiaries on the other
hand, that has not been described in the Offering Memorandum.

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                  CC. No labor disturbance by the employees of the Company or
any of its subsidiaries exists or, to the knowledge of the Company or any of its
subsidiaries, is imminent that could be expected to have a Material Adverse
Effect.

                  DD. The Company and each of its subsidiaries has filed all
federal, state and local income and franchise tax returns required to be filed
through the date hereof and has paid all taxes due thereon, and no tax
deficiency has been determined adversely to the Company or any of its
subsidiaries that has had (nor does the Company have any knowledge of any tax
deficiency that, if determined adversely to the Company or any of its
subsidiaries, might have) a Material Adverse Effect.

                  EE. Since the date as of which information is given in the
Offering Memorandum through the date hereof, and except as may otherwise be
disclosed in the Offering Memorandum, neither the Company nor any of its
subsidiaries has (i) issued or granted any securities, (ii) incurred any
liability or obligation, direct or contingent, other than liabilities and
obligations that were incurred in the ordinary course of business, (iii) entered
into any transaction not in the ordinary course of business or (iv) declared or
paid any dividend on its capital stock.

                  FF. The Company (i) makes and keeps accurate books and records
and (ii) maintains internal accounting controls that provide reasonable
assurance that (A) transactions are executed in accordance with management's
authorization, (B) transactions are recorded as necessary to permit preparation
of its financial statements and to maintain accountability for its assets, (C)
access to its assets is permitted only in accordance with management's
authorization and (D) the reported accountability for its assets is compared
with existing assets at reasonable intervals.

                  GG. Except as set forth on Schedule 5(GG), neither the Company
nor any of its subsidiaries (i) is in violation of its charter or by-laws or
other formation documents, (ii) is in default in any material respect, and no
event has occurred that, with notice or lapse of time or both, would constitute
such a default, in the due performance or observance of any term, covenant,
condition or other obligation contained in any material indenture, mortgage,
deed of trust, loan agreement or other agreement or instrument to which it is a
party or by which it is bound or to which any of its properties or assets is
subject, (iii) is in violation in any material respect of any law, ordinance,
governmental rule, regulation or court decree to which it or its property or
assets may be subject or has failed to obtain or maintain any material license,
permit, certificate, franchise or other governmental authorization or permit
necessary to the ownership of its property or to the conduct of its business or
(iv) violates, in any material respect, any law, ordinance, governmental rule,
regulation or court decree to which it is subject in the origination, purchase
or servicing of consumer obligations.

                  HH. Neither the Company nor any of its subsidiaries, nor any
director, officer, agent, employee or other person associated with or acting on
behalf of the Company or any of its subsidiaries, has used any corporate funds
for any unlawful contribution, gift, entertainment or other unlawful expense
relating to political activity; made any direct or indirect unlawful payment to
any foreign or domestic government official or employee from corporate funds;

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violated or is in violation of any provision of the Foreign Corrupt Practices
Act of 1977; or made any bribe, rebate, payoff, influence payment, kickback or
other unlawful payment.

                  II. Except for such matters as would not, individually or in
the aggregate, either result in a Material Adverse Effect or require disclosure
in the Offering Memorandum, the Company and any of its subsidiaries (or, to the
knowledge of the Company or any of its subsidiaries or any of their respective
predecessors in interest) (i) are conducting and have conducted their
businesses, operations and facilities in compliance with Environmental Laws (as
defined below); (ii) possess, and are in compliance with, any and all permits,
licenses or registrations required under Environmental Laws ("Environmental
Permits"); (iii) will not require material expenditures to maintain such
compliance with Environmental Laws or their Environmental Permits or to
remediate, clean up, abate or remove any Hazardous Substance (as defined below);
and (iv) are not subject to any pending or, to the best knowledge of the Company
or any of its subsidiaries, threatened claim or other legal proceeding under any
Environmental Laws against the Company or its subsidiaries, and have not been
named as a "potentially responsible party" under or pursuant to any
Environmental Laws. As used in this paragraph, "Environmental Laws" means any
and all applicable federal, state, local, and foreign laws, ordinances,
regulations and common law, or any administrative or judicial order, consent,
decree or judgment thereof, relating to pollution or the protection of human
health or the environment, including, without limitation, those related to (A)
emissions, discharges, releases or threatened releases of, or exposure to,
Hazardous Substances, (B) the generation, manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of Hazardous
Substances, or (C) the investigation, remediation or cleanup of any Hazardous
Substances. As used in this paragraph, "Hazardous Substances" means pollutants,
contaminants or hazardous, dangerous, toxic, biohazardous or infectious
substances, materials or wastes, or any other chemical substance regulated under
Environmental Laws.

                  JJ. None of the transactions contemplated by this Agreement
(including, without limitation, the use of the proceeds from the sale of the
Shares), will violate or result in a violation of Section 7 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), or any regulation
promulgated thereunder, including, without limitation, Regulations T, U and X of
the Board of Governors of the Federal Reserve System.

                  KK. The statements set forth in the Offering Memorandum
insofar as they purport to describe the provisions of the laws and documents
referred to therein, are accurate in all material respects.

                  LL. The minute books and records of the Company and its
subsidiaries relating to proceedings of their respective shareholders, boards of
directors, committees of their respective boards of directors, members, managers
and committees of their respective managers made available to the Purchaser, are
their original minute books and records or are true, correct and complete copies
thereof, with respect to all proceedings of said shareholders, boards of
directors, members, managers and committees since December 18, 2001 through the
date hereof. In the event that definitive minutes have not been prepared with
respect to any proceedings of such shareholders, boards of directors, members,
managers or committees, the Company has provided the Purchaser with originals or
true, correct and complete copies of draft minutes or

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written agendas relating thereto, which drafts and agendas, if any, reflect all
events that occurred in connection with such proceedings.

                  MM. All instruments, records, agreements and other documents
requested by the Purchaser, have been provided to, or made available for
inspection by, the Purchaser, and such documents are complete and genuine and
include all material collateral and supplemental thereto.

                  NN. The Company is not aware of (i) any significant deficiency
in the design or operation of internal controls which could adversely affect the
Company's ability to record, process, summarize and report financial data or any
material weaknesses in internal controls; or (ii) any fraud, whether or not
material, that involves management or other employees who have a significant
role in the Company's internal controls.

                  OO. There have been no significant changes in internal
controls or in other factors that could significantly affect internal controls,
including any corrective actions with regard to significant deficiencies and
material weaknesses.

                  PP. The Company will be organized in conformity with the
requirements for qualification as a real estate investment trust ("REIT") under
the Code and its proposed method of operation, as described in the Offering
Memorandum, will enable it to meet the requirements for taxation as a REIT under
the Code, commencing with the Company's taxable year ending December 31, 2003.

                  QQ. Neither the Company nor any of its subsidiaries is now,
or, after receipt of payment for the Shares and consummation of all related
transactions will be an "investment company," or an "affiliated person" of, or
"promoter" or "principal underwriter" for, an "investment company," as such
terms are defined in the Investment Company Act of 1940, as amended (the
"Investment Company Act"), or an "investment advisor,' as such term is defined
in the Investment Advisors Act of 1940, as amended, or a "broker" within the
meaning of Section 3(a)(4) of the Exchange Act or a "dealer" within the meaning
of Section 3(a)(5) of the Exchange Act or required to be registered pursuant to
Section 15(a) of the Exchange Act.

                  RR. All of the information supplied by the Company, whether
written or oral (and whether included in the Offering Memorandum or otherwise),
is true and accurate and complete in all material respects. In addition, except
as would not result in a Material Adverse Effect, the Company has received
written permission from each and every entity or person that has any right to
authorize or grant permission for the use of the information.

                  SS. The consummation of the transactions contemplated by the
Offering Memorandum did not result in a conflict of interest by or among the
Company or any of its affiliates other than has been disclosed in the Offering
Memorandum.

                  TT. Any certificate signed by an officer of the Company or an
officer or manger of any of its subsidiaries and delivered to the Purchaser or
to counsel for the Purchaser shall be deemed to be a representation and warranty
by the Company and its subsidiaries to the Purchaser as to the matters set forth
therein and not representations and warranties of the officers in their
individual capacities.

                                       11

<PAGE>

                  UU. Except as otherwise disclosed in the Offering Memorandum,
there are no outstanding loans or advances or guarantees of indebtedness by the
Company or any subsidiary to or for the benefit of any of the officers or
directors of the Company or any subsidiary or any of the members of the families
of any of them.

                  VV. The projections set forth in the Offering Memorandum under
the caption Financial Projections represent good faith estimates of the
performance of the Company for the periods stated therein based upon assumptions
which were believed in good faith to be reasonable when made and continue to be
reasonable as of the date hereof.

                  WW. As of the date of the Offering Memorandum, the Offering
Memorandum did not contain any untrue material fact or omit to state a material
fact required to be stated therein or which was necessary to make the statements
made therein, in light of the circumstances under which they were made, not
misleading. Except as provided on Schedule 5(WW), since the date of the Offering
Memorandum, no event has occurred or fact or circumstance exists that would make
any statement of material fact made in the Offering Memorandum untrue.

         6. Miscellaneous.

                  A. Purchaser's Investment Representations. The Purchaser
hereby represents to the Company the following:

                           (i) the Purchaser is acquiring the Shares purchased
         hereunder or acquired pursuant hereto for its own account with the
         present intention of holding such securities for purposes of
         investment, has no intention of selling such securities in a public
         distribution in violation of the federal securities laws or any
         applicable state securities laws, and acknowledges that until such time
         as the same is no longer required under the applicable requirements of
         the Act, the Shares (and all securities issued in exchange therefore or
         in substitution thereof) shall bear the following legend:

                  "THE SHARES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER
                  THE UNITED STATES SECURITIES ACT OF 1933 (THE "ACT") AND MAY
                  NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
                  (A)(1) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
                  QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
                  UNDER THE ACT PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
                  ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION
                  MEETING THE REQUIREMENTS OF RULE 144A, (2) IN AN OFFSHORE
                  TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION
                  S UNDER THE ACT, (3) PURSUANT TO AN EXEMPTION FROM
                  REGISTRATION UNDER THE ACT PROVIDED BY RULE 144 THEREUNDER (IF
                  AVAILABLE), (4) TO AN ACCREDITED INVESTOR IN A TRANSACTION
                  EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT OR (5)
                  PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
                  AND (B) IN ACCORDANCE

                                       12

<PAGE>

                  WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE
                  UNITED STATES AND IN ANY CASE, TO A TRANSFEREE THAT WILL NOT,
                  WITHOUT THE ISSUER'S CONSENT AFTER GIVING EFFECT TO THE
                  TRANSFER, CAUSE AN "INDIVIDUAL" (WITHIN THE MEANING OF SECTION
                  542(a)(2), AS MODIFIED BY SECTIONS 544 AND 856(h), OF THE
                  INTERNAL REVENUE CODE OF 1986, AS AMENDED) TO OWN MORE THAN
                  9.25% OF THE OUTSTANDING SHARES OF COMMON STOCK OF THE ISSUER.
                  THE HOLDER AGREES NOT TO ENGAGE IN HEDGING TRANSACTIONS WITH
                  RESPECT TO THE ISSUER'S COMMON STOCK EXCEPT IN COMPLIANCE WITH
                  THE REQUIREMENTS OF THE ACT."

         The Purchaser further acknowledges that upon original issuance thereof,
and until such time as the Shares are no longer subject to the Registration
Agreement (and all securities issued in exchange therefore or in substitution
thereof) shall bear the following legend:

                  "THE SHARES EVIDENCED HEREBY ARE SUBJECT TO THE PROVISIONS OF
                  A REGISTRATION RIGHTS AGREEMENT, INCLUDING, WITHOUT
                  LIMITATION, RESTRICTIONS ON THE TRANSFER OF THE SHARES. A COPY
                  OF THE REGISTRATION RIGHTS AGREEMENT IS AVAILABLE AT THE
                  OFFICES OF THE COMPANY."

                           (ii) the Purchaser has the financial ability to bear
         the economic risk of an investment in the Shares, has adequate means of
         providing for his, her, or its current needs and personal
         contingencies, has no need for liquidity in such investment and could
         afford a complete loss of such investment; and

                           (iii) the Purchaser is an "accredited investor" as
         defined in Rule 501(a) of Regulation D of the Securities Act; and

                           (iv) the Purchaser's overall commitment to
         investments which are not readily marketable is not disproportionate to
         his, her, or its net worth and his, her, or its investment in the
         Company will not cause such overall commitment to become excessive; and

                           (v) the Purchaser has such knowledge and experience
         in financial and business matters that he, she, or it is capable of
         evaluating the merits and risks of his, her, or its investment in the
         Shares; and

                           (vi) the Purchaser expressly acknowledges receipt of
         the financial information contained in the Offering Memorandum and
         acknowledges and agrees that the Purchaser has read and understood the
         terms and conditions set forth in the financial information; and

                           (vii) the Purchaser has been given full opportunity
         to ask questions of and to receive answers from representatives of the
         Company concerning the terms and conditions of the investment and the
         business of the Company and such other information

                                       13

<PAGE>

         as he, she, or it desires in order to evaluate an investment in the
         Shares, and all such questions have been answered to the full
         satisfaction of the Purchaser; and

                           (viii) the Purchaser understands that the Shares have
         not been registered under the Act or the securities laws of any state,
         and are being issued in reliance upon specific exemptions from
         registration thereunder, and the Purchaser agrees that the Shares may
         not be sold, offered for sale, transferred, pledged, hypothecated, or
         otherwise disposed of except pursuant to (i) a registration statement
         with respect to such securities which is effective under the Act and
         under the securities act of any relevant state, (ii) Rule 144 under the
         Act, or (iii) any other exemption from registration under the Act and
         under the securities act of any relevant state relating to the
         disposition of securities, provided an opinion of counsel is furnished,
         reasonably satisfactory in form and substance to the Company, that an
         exemption from the registration requirements of the Act and such state
         act is available. The Purchaser understands the legal consequences of
         the foregoing to mean that he, she, or it may be required to bear the
         economic risk of his, her, or its investment in the shares of the
         Shares for an indefinite period or time. The Purchaser understands that
         any instruments initially representing the Shares shall bear legends
         restricting the transfer thereof. The Purchaser agrees not to resell or
         otherwise dispose of all or any Shares acquired by the Purchaser,
         except as permitted by law, including, without limitation, any and all
         applicable regulations under the Act and any state law or regulations;
         and

                           (ix) the Purchaser understands that no federal or
         state agency has made any finding or determination as to the fairness
         of an investment in, or any recommendation or endorsement of, the
         shares of the Shares; and

                           (x) either (A) no part of the assets to be used by
         the Purchaser to purchase the Shares constitutes assets of any
         "employee benefit plan" (as defined in Section 3(3) of ERISA) that is
         subject to Title I of ERISA or any "plan" (as defined in Section
         4975(e)(1) of the Code) or (B) part or all of the assets to be used by
         the Purchaser to purchase the Shares constitute assets of one or more
         "employee benefit plans" subject to Title I of ERISA or "plans" subject
         to Section 4975 of the Code and the terms and conditions of one or more
         statutory or administrative exemptions from the prohibited transaction
         rules of ERISA and the Code will be satisfied such that the Purchaser's
         acquisition and holding of the Shares does not and will not constitute
         a non-exempt prohibited transaction for purposes of ERISA and Section
         4975 of the Code; and

                           (xi) the Shares were not offered or sold to the
         Purchaser by any form of general solicitation or advertising, including
         but not limited to:

                           (A)      any advertisement, article, notice or other
                                    communication published in any newspaper,
                                    magazine or similar media or broadcast over
                                    television or radio; or
                           (B)      any seminar or meeting whose attendees were
                                    invited by any general solicitation or
                                    general advertising; and

                                       14

<PAGE>

                           (xii) the Purchaser acknowledges that the Company and
         others will rely on the acknowledgements, representations and
         warranties contained in this Agreement. The Purchaser agrees to
         promptly notify the Company if any of the acknowledgements,
         representations and warranties set forth herein are no longer accurate.

         7. Expenses. Whether or not the transactions contemplated by this
Agreement are consummated or this Agreement becomes effective or is terminated,
the Company and Origen Financial L.L.C. each, jointly and severally, agrees to
pay all costs, expenses, fees and taxes incident to and in connection with: (i)
the preparation, printing, filing and distribution of Offering Memorandum
(including, without limitation, financial statements and exhibits) and all
amendments and supplements thereto (including the fees, disbursements and
expenses of the Company's accountants and counsel incurred in connection
therewith); (ii) the preparation, printing (including, without limitation, word
processing and duplication costs) and delivery of this Agreement, the
Registration Agreement, all Blue Sky memoranda and all other agreements,
memoranda, correspondence and other documents printed and delivered in
connection therewith; (iii) the issuance and delivery by the Company of the
Shares and any taxes payable in connection therewith; (iv) the qualification of
the Shares for offer and sale under the securities or Blue Sky laws of the
several states; (v) the furnishing of such copies of the Offering Memorandum,
and all amendments and supplements thereto; (vi) the preparation of certificates
for the Shares (including, without limitation, printing and engraving thereof);
and (vii) the performance by the Company of its other obligations under this
Agreement.

         8. Indemnification.

                  A. The Company hereby agrees to indemnify and hold harmless
the Purchaser and, where applicable, its managers, directors, officers and
employees and each person, if any, who controls the Purchaser within the meaning
of the Act, from and against any loss, claim, damage or liability, joint or
several, or any action in respect thereof (including, but not limited to, any
loss, claim, damage, liability or action relating to the purchase and sale of
Shares), to which the Purchaser, or any such director, officer, employee or
controlling person may become subject, under the Act, the Exchange Act, or other
international, federal or statutory law or regulation, or at common law, or
otherwise, insofar as such loss, claim, damage, liability or action arises out
of, or is based upon, (i) any untrue statement or alleged untrue statement of a
material fact contained in the Offering Memorandum or in any amendment or
supplement thereto, (ii) the omission or alleged omission to state in the
Offering Memorandum, or in any amendment or supplement thereto, any material
fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading, (iii) any inaccuracy in the representations and warranties of the
Company contained in this Agreement; and the Company shall reimburse the
Purchaser and, where applicable, its directors, officers, employees or
controlling persons upon demand for any legal or other expenses incurred by the
Purchaser and its managers, directors, officers, employees or controlling
persons in connection with investigating, defending, settling, compromising or
paying any such loss, claim, damage, liability, expense or action as such
expenses are incurred.

                  B. The Purchaser hereby agrees to indemnify and hold harmless
the Company its officers and employees, each of its directors, and each person,
if any, who controls

                                       15

<PAGE>

the Company within the meaning of the Act, from and against any loss, claim,
damage or liability, joint or several, or any action in respect thereof, to
which the Company or any such director, officer, employee or controlling person
may become subject, under the Act or otherwise, insofar as such loss, claim,
damage, liability or action arises out of, or is based upon, any inaccuracy in
the representations and warranties of the Purchaser contained in Section 6 of
this Agreement; and the Purchaser shall reimburse the Company and, where
applicable, its directors, officers, employees or controlling persons upon
demand for any legal or other expenses incurred by the Company and its
directors, officers, employees or controlling persons in connection with
investigating, defending, settling, compromising or paying any such loss, claim,
damage, liability, expense or action as such expenses are incurred.

                  C. Promptly after receipt by an indemnified party under this
Section 8 of notice of any claim or the commencement of any action, the
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party under this Section 8, notify the indemnifying party in
writing of the claim or the commencement of that action; provided, however, that
the failure to notify the indemnifying party shall not relieve it from any
liability that it may have under this Section 8 except to the extent it has been
materially prejudiced by such failure and; provided, further, that the failure
to notify the indemnifying party shall not relieve it from any liability that it
may have to an indemnified party otherwise than under this Section 8. If any
such claim or action shall be brought against an indemnified party, and it shall
notify the indemnifying party thereof, the indemnifying party shall be entitled
to participate therein and, to the extent that it wishes, jointly with any other
similarly notified indemnifying party, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party. After notice from the
indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 8 for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense
thereof other than reasonable costs of investigation; provided, however, that
the Purchaser shall have the right to employ counsel to represent jointly the
Purchaser and, where applicable, its managers, directors, officers, employees
and controlling persons who may be subject to liability arising out of any claim
in respect of which indemnity may be sought by the Purchaser against the Company
under this Section 8 if the Purchaser is advised by counsel that there exists
one or more legal defenses different than those available to the Company and in
the reasonable judgment of such counsel, it is advisable for the Purchaser and
those managers, directors, officers, employees and controlling persons to be
jointly represented by one separate counsel. No indemnifying party shall (i)
without the prior written consent of the indemnified parties (which consent
shall not be unreasonably withheld), settle or compromise or consent to the
entry of any judgment with respect to any pending or threatened claim, action,
suit or proceeding in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding, or (ii) be liable for any
settlement of any such action effected without its written consent (which
consent shall not be unreasonably withheld), but if settled with the consent of
the indemnifying party or if there be a final judgment of the plaintiff in any
such action, the indemnifying party agrees to indemnify and hold harmless any
indemnified party from and against any loss or liability by reason of such
settlement or judgment.

                                       16

<PAGE>

         9. Reimbursement of Purchaser's Expenses. If the Company fails to
tender the Shares for delivery to the Purchaser by reason of any failure,
refusal or inability on the part of the Company to perform any agreement on its
part to be performed, or because any other condition of the obligations
hereunder required to be fulfilled by the Company is not fulfilled, the Company
shall reimburse the Purchaser for all reasonable out-of-pocket expenses
(including fees and disbursements of counsel) incurred by the Purchaser in
connection with this Agreement and the proposed purchase of the Shares, and upon
demand the Company shall pay the full amount thereof to the Purchaser.

         10. Survival of Representations and Warranties. All representations and
warranties contained herein or made in writing by any party in connection
herewith will survive the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby and will remain in full
force and effect, regardless of any investigation made by any Purchaser or on
its behalf. Nothing herein shall imply any duty on the Company after the
execution and delivery of this Agreement to update any representations or
warranties made herein.

         11. Persons Entitled to Benefit of Agreement. This Agreement shall
inure to the benefit of and be binding upon the Purchaser, the Company, and
their respective successors. This Agreement and the terms and provisions hereof
are for the sole benefit of only those persons, except that the representations,
warranties, indemnities and agreements of the Company contained in this
Agreement shall also be deemed to be for the benefit of the Purchaser and, where
applicable, the managers, directors and officers of the Purchaser and any person
or persons controlling the Purchaser within the meaning of Section 15 of the
Act. Nothing in this Agreement is intended or shall be construed to give any
person, other than the persons referred to in this Section 11, any legal or
equitable right, remedy or claim under or in respect of this Agreement or any
provision contained herein.

         12. Severability. Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be prohibited by or
invalid under applicable law, such provision will be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of
this Agreement.

         13. Counterparts. This Agreement may be executed simultaneously in two
or more counterparts, any one of which need not contain the signatures of more
than one party, but all such counterparts taken together will constitute one and
the same Agreement.

         14. Descriptive Headings. The descriptive headings of this Agreement
are inserted for convenience only and do not constitute a part of this
Agreement.

         15. GOVERNING LAW. THE CORPORATE LAW OF DELAWARE WILL GOVERN ALL ISSUES
CONCERNING THE RELATIVE RIGHTS OF THE COMPANY AND ITS STOCKHOLDERS. ALL OTHER
QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY AND INTERPRETATION OF THIS
AGREEMENT AND THE EXHIBITS AND SCHEDULES HERETO WILL BE GOVERNED BY THE INTERNAL
LAW, AND NOT THE LAW OF CONFLICTS, OF DELAWARE.

                                       17

<PAGE>

         16. Notices. All notices, demand or other communications to be
delivered under or by reason of the provisions of this Agreement shall be in
writing and shall be deemed to have been given when delivered personally to the
recipient; two business days after being deposited in the mail, postage prepaid,
if mailed; when answered back, if telexed; when receipt is acknowledged, if
telecopied; and on the next business day, if timely delivered to an air courier
guaranteeing overnight delivery. Such notices, demand and other communications
will be sent to the Purchaser at the address indicated on the signature page
hereof and to the Company at the address indicated below:

                  Origen Financial, Inc.
                  27777 Franklin Road, Suite 1700
                  Southfield, Michigan 48034
                  Attention:  President

or to such other address or to the attention of such other person as the
recipient party has specified by prior written notice to the sending party.

                                       18

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first above written.

                                    ORIGEN FINANCIAL, INC.

                                    By:   /s/ J. Peter Scherer
                                          -------------------------------------

                                    Its:  President
                                          -------------------------------------

                                    DB STRUCTURED FINANCE AMERICAS, LLC

                                    By:   /s/ Richard C. Kennedy
                                          -------------------------------------

                                    Its:  VP
                                          -------------------------------------

                                    DB STRUCTURED FINANCE AMERICAS, LLC

                                    By:   /s/ Jill H. Rathjen
                                          -------------------------------------

                                    Its:  VP
                                          -------------------------------------

                                             Address:

                                             -----------------------------

                                             -----------------------------

                                             -----------------------------

                                       19<PAGE>

                                                                    EXHIBIT 10.5

                             ORIGEN FINANCIAL, INC.

                           2003 EQUITY INCENTIVE PLAN

                                   ARTICLE I.
                        PURPOSE AND ADOPTION OF THE PLAN

         1.01     PURPOSE. The purpose of the Origen Financial, Inc. 2003 Equity
Incentive Plan (the "Plan") is to provide certain officers, directors, employees
and consultants of Origen Financial, Inc., a Delaware corporation (the
"Company"), and Origen Financial, L.L.C., a Delaware limited liability company
(the "Operating Partnership"), with an additional incentive to promote the
Company's financial success and to provide an incentive which the Company may
use to induce able persons to enter into or remain in the employment of, or
service to, the Company, the Operating Partnership or another Subsidiary.

         1.02     ADOPTION AND TERM. The Plan was approved by the Board as of
September 14, 2003 and by its stockholders as of October 8, 2003, and will
remain in effect until all shares authorized under the terms of the Plan have
been issued, unless earlier terminated or abandoned by action of the Board;
provided, however, that no Incentive Stock Option may be granted after September
14, 2013.

                                   ARTICLE II.
                                   DEFINITIONS

         2.01     ADMINISTRATOR means the group of persons having authority to
administer the Plan pursuant to Section 3.01.

         2.02     AWARD means any one or combination of Non-Qualified Stock
Options, Performance Based Options, Incentive Stock Options, Stock Appreciation
Rights, Restricted Stock, Deferred Stock Awards, dividend equivalent rights or
any other award made under the terms of the Plan.

         2.03     AWARD AGREEMENT means a written agreement between the Company
and Participant or a written acknowledgment from the Company specifically
setting forth the terms and conditions of an Award granted under the Plan.

         2.04     AWARD PERIOD means, with respect to an Award, the period of
time set forth in the Award Agreement during which specified conditions set
forth in the Award Agreement must be satisfied.

         2.05     BENEFICIARY means (a) an individual, trust or estate who or
which, by will or by operation of the laws of descent and distribution, succeeds
to the rights and obligations of the Participant under the Plan and Award
Agreement upon the Participant's death; or (b) an individual, who by designation
of the Participant, succeeds to the rights and obligations of the Participant
under the Plan and Award Agreement upon the Participant's death.

         2.06     BOARD means the Board of Directors of the Company.

         2.07     CHANGE OF CONTROL EVENT means (a) an event or series of events
by which any "person," as such term is used in Section 13(d) and 14(d) of the
Exchange Act (other than the Company, the Operating Partnership, any Subsidiary,
Ronald A. Klein, Gary A. Shiffman, any "affiliate" or "associate" (as such terms
are defined in Rule 12b-2 of the Exchange Act) of Ronald A. Klein or Gary A.
Shiffman, or any trustee, fiduciary or other person or entity holding

<PAGE>

securities under any employee benefit plan or trust of the Company, the
Operating Partnership, or any Subsidiary), together with all "affiliates" and
"associates" (as such terms are defined in Rule 12b-2 of the Exchange Act) of
such person, shall become the "beneficial owner" (within the meaning of Rule
13d-3 under the Exchange Act), directly or indirectly, of more than 50% of the
combined voting power of the Company's then outstanding securities having the
right to vote in an election of the Board (other than as a result of an
acquisition of securities directly from the Company); (b) consummation of: (i)
any consolidation or merger of the Company in which the stockholders of the
Company immediately prior to the consolidation or merger would not, immediately
after the consolidation or merger, "beneficially own" (as such term is defined
in Rule 13d-3 of the Exchange Act), directly or indirectly, shares representing
in the aggregate more than fifty percent (50%) of the voting shares of the
corporation issuing cash or securities in the consolidation or merger (or of its
ultimate parent corporation, if any) or (ii) any sale, lease, exchange or other
transfer to an unrelated party (in one transaction or a series of transactions
contemplated or arranged by any party as a single plan) of all or substantially
all of the assets of the Company; (c) the stockholders of the Company shall
approve any plan or proposal for the liquidation or dissolution of the Company;
or (d) persons who, as of the date hereof, constitute the Company's Board of
Directors (the "Incumbent Directors") cease for any reason, including, without
limitation, as a result of a tender offer, proxy contest, merger or similar
transaction, to constitute at least a majority of the Board, provided that any
person becoming a director of the Company subsequent to such date shall be
considered an Incumbent Director if such person's election was approved by or
such person was nominated for election by either (i) a vote of at least
two-thirds of the Incumbent Directors or (ii) a vote of at least a majority of
the Incumbent Directors who are members of a nominating committee of the Board
comprised, in the majority, of Incumbent Directors. Notwithstanding the
foregoing, a "Change of Control Event" shall not be deemed to have occurred for
purposes of the foregoing clause (a) solely as the result of an acquisition of
securities by the Company which, by reducing the number of shares of voting
securities outstanding, increases the proportionate number of shares of voting
securities beneficially owned by any person to more than 50% of the combined
voting power of all then outstanding voting securities; provided, however, that
if such person shall thereafter become the beneficial owner of any additional
shares of voting securities (other than pursuant to a stock split, stock
dividend or similar transaction or as a result of an acquisition of securities
directly from the Company), then a "Change of Control Event" shall be deemed to
have occurred for purposes of the foregoing clause (a).

         2.08     CODE means the Internal Revenue Code of 1986, as amended.
References to a section of the Code shall include that section and any
comparable section or sections of any future legislation that amends,
supplements or supersedes that section.

         2.09     COMMON STOCK means the Common Stock of the Company, par value
$0.01.

         2.10     COMPANY means Origen Financial, Inc., a Delaware corporation,
and any successor thereto.

         2.11     DATE OF GRANT means the date designated by the Administrator
as the date as of which it grants an Award, which shall not be earlier than the
date on which the Administrator approves the granting of such Award.

         2.12     DEFERRED STOCK AWARD means an Award of phantom stock units
pursuant to an Award Agreement that provides for the right to receive Common
Stock at the end of a specified deferral period.

         2.13     DIRECTOR means a member of the Board of Directors of the
Company.

                                      -2-

<PAGE>

         2.14     EFFECTIVE IPO means an initial public offering of the Common
Stock pursuant to a registration statement declared effective by the Securities
and Exchange Commission.

         2.15     EXCHANGE ACT means the Securities Exchange Act of 1934, as
amended.

         2.16     EXERCISE PRICE means, with respect to a Stock Appreciation
Right, the amount established by the Administrator, in accordance with Section
7.03 hereunder, and set forth in the Award Agreement, which is to be subtracted
from the Fair Market Value on the date of exercise in order to determine the
amount of the Incremental Value to be paid to the Participant.

         2.17     EXPIRATION DATE means the date specified in an Award Agreement
as the expiration date of such Award.

         2.18     FAIR MARKET VALUE means, on any given date, the fair market
value of the Common Stock as determined in good faith by the Administrator;
provided, however, that if the Common Stock is listed for trading on a national
securities exchange or admitted to quotation on the National Association of
Securities Dealers Automated Quotation System ("Nasdaq"), the determination
shall be made by reference to market quotations; provided further, however, that
if the date for which Fair Market Value is determined is the first day when
trading prices for the Common Stock are reported on Nasdaq or on a national
securities exchange, the Fair Market Value shall be the "Price to Public" (or
equivalent) set forth on the cover page for the final prospectus relating to the
Effective IPO.

         2.19     INCENTIVE STOCK OPTION means a stock option described in
Section 422 of the Code.

         2.20     INCREMENTAL VALUE has the meaning given such term in Section
7.01 of the Plan.

         2.21     INDEPENDENT DIRECTOR means a member of the Board who is not
also an employee of the Company, the Operating Partnership or any Subsidiary.

         2.22     NON-QUALIFIED STOCK OPTION means a stock option which is not
an Incentive Stock Option.

         2.23     OPERATING PARTNERSHIP means Origen Financial L.L.C., a
Delaware limited liability company, and any successor thereto.

         2.24     OPTIONS means all Non-Qualified Stock Options, Incentive Stock
Options and Performance Based Options granted at any time under the Plan.

         2.25     PARTICIPANT has the meaning set forth in Article V.

         2.26     PERFORMANCE BASED AWARD has the meaning set forth in Section
11.01.

         2.27     PERFORMANCE BASED OPTION means a stock option which, upon
exercise or at any other time, would not result in or give rise to "applicable
employee remuneration" within the meaning of Section 162(m) of the Code.

         2.28     PERFORMANCE CYCLE means one or more periods of time, which may
be of varying and overlapping durations, as the Administrator may select, over
which the attainment of

                                      -3-

<PAGE>

one or more performance criteria will be measured for the purpose of determining
a grantee's right to and the payment of a Performance Based Award.

         2.29     PLAN means the Origen Financial, Inc. 2003 Equity Incentive
Plan, as described herein and as it may be amended from time to time.

         2.30     PURCHASE PRICE, with respect to Options, shall have the
meaning set forth in Section 6.02.

         2.31     RESTRICTED STOCK means shares of Common Stock subject to
restrictions imposed under the terms of an Award granted pursuant to Article IX.

         2.32     RULE 16b-3 means Rule 16b-3 promulgated by the Securities and
Exchange Commission under Section 16 of the Exchange Act, as currently in effect
and as it may be amended from time to time, and any successor rule.

         2.33     STOCK APPRECIATION RIGHT means an Award granted in accordance
with Article VII.

         2.34     SUBSIDIARY means any corporation or other entity (other than
the Company) in which the Company has a controlling interest, either directly or
indirectly.

         2.35     TERMINATION OF SERVICE means the voluntary or involuntary
termination of a Participant's employment with, or consulting or other
independent contractor relationship to, the Company for any reason, including
death, disability, retirement or as the result of the divestiture of the
Participant's employer or any other similar transaction in which the
Participant's employer ceases to be the Company, the Operating Partnership or a
Subsidiary. Whether an authorized leave of absence or absence on military or
government service, absence due to disability, or absence for any other reason
shall constitute Termination of Service shall be determined in each case by the
Administrator in its sole discretion. Unless otherwise determined by the
Administrator, a change in status from an employee to a consultant or from a
consultant to an employee will not constitute a Termination of Service.

                                  ARTICLE III.
                                 ADMINISTRATION

         3.01     ADMINISTRATION. The Administrator of the Plan shall be a
committee of two or more Independent Directors elected or appointed by the
Board. The Administrator shall administer the Plan in accordance with this
provision and shall have the sole discretionary authority to interpret the Plan,
to establish and modify administrative rules for the Plan, to impose such
conditions and restrictions on Awards as it determines appropriate, to cancel
Awards (including those made pursuant to other plans of the Company) and to
substitute new options (including options granted under other plans of the
Company) with the consent of the recipient, and to take such steps in connection
with the Plan and Awards granted thereunder as it may deem necessary or
advisable. All decisions and interpretations of the Administrator shall be
binding on all persons, including the Company and the Participants. The
Administrator, in its discretion, may delegate to the Chief Executive Officer of
the Company all or part of the Administrator's authority and duties with respect
to Awards, including the granting thereof, to individuals who are not subject to
the reporting and other provisions of Section 16 of the Exchange Act or who are
not "covered employees" within the meaning of Section 162(m) of the Code. Any
such delegation by the Administrator shall include a limitation as to the amount
of Awards that may be awarded during the period of the delegation and shall
contain guidelines as

                                      -4-

<PAGE>

to the determination of the exercise price of any Option, the conversion ratio
or price of other Awards and the vesting criteria. The Administrator may revoke
or amend the terms of a delegation at any time but such action shall not
invalidate any prior actions of the Administrator's delegate or delegates that
were consistent with the terms of the Plan.

         3.02     INDEMNIFICATION. Members of the Administrator shall be
entitled to indemnification and reimbursement from the Company for any action or
any failure to act in connection with service as Administrator to the full
extent provided for or permitted by the Company's certificate of incorporation
or bylaws or by any insurance policy or other agreement intended for the benefit
of the Company's officers, directors or employees or by any applicable law.

                                      -5-

<PAGE>

                                   ARTICLE IV.
                   COMMON STOCK ISSUABLE PURSUANT TO THE PLAN

         4.01     SHARES ISSUABLE. Shares to be issued under the Plan may be
authorized and unissued shares or issued shares which have been reacquired by
the Company. Except as provided in Section 4.03, the Awards granted to any
Participant and to all Participants in the aggregate under the Plan shall be
limited so that the sum of the following shall never exceed seven percent (7%)
of the total number of shares of Common Stock of the Company outstanding after
giving effect to the initial formation and capitalization transactions of the
Company: (i) all shares which shall be issued upon the exercise of outstanding
Options or other Awards granted under the Plan, (ii) all shares for which
payment of Incremental Value shall be made by reason of the exercise of Stock
Appreciation Rights at any time granted under the Plan, and (iii) the number of
shares otherwise issuable under an Award which are applied by the Company to
payment of the withholding or tax liability discussed in Section 12.04,
provided, that, if the Company completes an Effective IPO, the shares available
for issuance under the Plan shall be increased to equal seven percent (7%) of
the total outstanding shares of Common Stock of the Company upon completion of
the Effective IPO. Subject to such overall limitation, from and after the date
the Company becomes subject to the deduction limit imposed by Section 162(m) of
the Code, Options and Stock Appreciation Rights with respect to no more than
Five Hundred Thousand (500,000) shares of Common Stock may be granted to any one
individual Participant during any one calendar year period.

         4.02     SHARES SUBJECT TO TERMINATED AWARDS. In the event that any
Award at any time granted under the Plan shall be surrendered to the Company, be
terminated or expire before it shall have been fully exercised, or an award of
Stock Appreciation Rights is exercised for cash, then all shares formerly
subject to such Award as to which such Award shall not have been exercised shall
be available for any Award subsequently granted in accordance with the Plan.
Shares of Common Stock subject to Options, or portions thereof, which have been
surrendered in connection with the exercise of tandem Stock Appreciation Rights
shall not be available for subsequent Awards under the Plan, and shares of
Common Stock issued in payment of such Stock Appreciation Rights shall be
charged against the number of shares of Common Stock available for the grant of
Awards. Shares which are reacquired by the Company or shares of Restricted Stock
which are forfeited pursuant to forfeiture provisions in the Award Agreement
shall be available for subsequently granted Awards only if the forfeiting
Participant received no benefits of ownership (such as dividends actually paid
to the Participant) other than voting rights of the forfeited shares. Any shares
of Common Stock issued by the Company pursuant to its assumption or substitution
of outstanding grants from acquired companies shall not reduce the number of
shares available for Awards under this Plan unless issued under this Plan.

                                      -6-

<PAGE>

         4.03     ADJUSTMENTS TO REFLECT CAPITAL CHANGES.

                  (a)      RECAPITALIZATIONS. Subject to 4.03(b) hereof, if, as
         a result of any reorganization, recapitalization, reclassification,
         stock dividend, stock split, reverse stock split or other similar
         change in the Company's capital stock, the outstanding shares of Common
         Stock are increased or decreased or are exchanged for a different
         number or kind of shares or other securities of the Company, or
         additional shares or new or different shares or other securities of the
         Company or other non-cash assets are distributed with respect to such
         shares of Common Stock or other securities, or, if, as a result of any
         merger or consolidation, sale of all or substantially all of the assets
         of the Company, the outstanding shares of Common Stock are converted
         into or exchanged for a different number or kind of securities of the
         Company or any successor entity (or a parent or subsidiary thereof),
         the Administrator shall make an appropriate or proportionate adjustment
         in (i) the maximum number of shares reserved for issuance under the
         Plan, (ii) the number of Options or Stock Appreciation Rights that can
         be granted to any one individual Participant, (iii) the number and kind
         of shares or other securities subject to any then outstanding Awards
         under the Plan, (iv) the repurchase price per share subject to each
         outstanding Restricted Stock Award, and (v) the Exercise Price or
         Purchase Price subject to any then outstanding Options and Stock
         Appreciation Rights under the Plan, without changing the aggregate
         exercise price (i.e., the Exercise Price multiplied by the number of
         Options and Stock Appreciation Rights) as to which such Options and
         Stock Appreciation Rights remain exercisable. The adjustment by the
         Administrator shall be final, binding and conclusive. No fractional
         shares of Common Stock shall be issued under the Plan resulting from
         any such adjustment, but the Administrator in its discretion may make a
         cash payment in lieu of fractional shares. The Administrator may also
         adjust the number of shares subject to outstanding Awards and the
         exercise price and the terms of outstanding Awards to take into
         consideration material changes in accounting practices or principles,
         extraordinary dividends, acquisitions or dispositions of stock or
         property or any other event if it is determined by the Administrator
         that such adjustment is appropriate to avoid distortion in the
         operation of the Plan, provided that no such adjustment shall be made
         in the case of an Incentive Stock Option, without the consent of the
         grantee, if it would constitute a modification, extension or renewal of
         the Option within the meaning of Section 424(h) of the Code.

                  (b)      MERGERS. In contemplation of and subject to the
         consummation of a consolidation or merger or sale of all or
         substantially all of the assets of the Company in which outstanding
         shares of Common Stock are exchanged for securities, cash or other
         property of an unrelated corporation or business entity or in the event
         of a liquidation of the Company (in each case, a "Transaction"), the
         Board, or the board of directors of any corporation assuming the
         obligations of the Company, may, in its discretion, take any one or
         more of the following actions as to outstanding Awards: (i) provide
         that such Awards shall be assumed or equivalent awards shall be
         substituted, by the acquiring or succeeding corporation (or an
         affiliate thereof), and/or (ii) upon written notice to the
         Participants, provide that all Awards will terminate immediately prior
         to the consummation of the Transaction. In the event that, pursuant to
         clause (ii) above, Awards will terminate immediately prior to the
         consummation of the Transaction, (A) all Awards, including Options,
         shall vest and all restrictions, if any, with respect to Awards shall
         be deemed to have lapsed, and (B) all Awards shall be fully settled in
         cash or in kind at such appropriate consideration as determined by the
         Administrator in its sole discretion after taking into account the
         consideration payable per share of Common Stock pursuant to the
         Transaction (the "Merger Price") and all Options shall be fully
         settled, in cash or in kind, in an amount equal to the difference
         between (I) the Merger Price times the number of

                                      -7-

<PAGE>

         shares of Common Stock subject to such outstanding Options (to the
         extent then exercisable at prices not in excess of the Merger Price)
         and (II) the aggregate exercise price of all such outstanding Options;
         provided, however, that each Participant shall be permitted, within a
         specified period determined by the Administrator prior to the
         consummation of the Transaction, to exercise all outstanding Options,
         including those that are not then exercisable, subject to the
         consummation of the Transaction.

                  (c)      SUBSTITUTE AWARDS. After any reorganization, merger
         or consolidation in which the Company, the Operating Partnership or a
         Subsidiary shall be a surviving entity, the Administrator may grant
         substituted Awards under the provisions of the Plan replacing stock and
         stock based awards granted under a plan of another party to the
         reorganization, merger or consolidation, where such party's stock may
         no longer be issued following such merger or consolidation. The
         foregoing adjustments and manner of application of the foregoing
         provisions shall be determined by the Administrator in its sole
         discretion. Any adjustments may provide for the elimination of any
         fractional shares which might otherwise have become subject to any
         Awards.

                                   ARTICLE V.
                                  PARTICIPATION

         5.01     ELIGIBLE PARTICIPANTS. Participants in the Plan shall be the
employees (including prospective employees), Independent Directors, consultants
and advisors of the Company, the Operating Partnership and the other
Subsidiaries, as determined and selected from time to time by the Administrator,
in its sole and absolute discretion. The Administrator's designation of a
Participant in any year shall not require the Administrator to designate such
person to receive Awards in any other year. The Administrator shall consider
such factors as it deems pertinent in selecting Participants and in determining
the type and amount of their respective Awards.

                                   ARTICLE VI.
                                  OPTION AWARDS

         6.01     POWER TO GRANT OPTIONS. The Administrator may grant, to such
Participants as the Administrator may select, Options entitling the Participant
to purchase Common Stock from the Company at such price, in such quantity and on
such terms and subject to such conditions, not inconsistent with the terms of
this Plan, as may be established by the Administrator. The terms of any Option
granted under this Plan shall be set forth in an Award Agreement.

         6.02     PURCHASE PRICE OF OPTIONS. The Purchase Price of each share of
Common Stock which may be purchased upon exercise of any Option granted under
the Plan shall not be less than the Fair Market Value on the Date of Grant
(other than Options granted in lieu of cash compensation); provided, however,
that the Purchase Price for shares of Common Stock purchased pursuant to Options
designated by the Administrator as Incentive Stock Options shall be equal to or
greater than the Fair Market Value on the Date of Grant as required under
Section 422 of the Code and provided further that the Purchase Price for shares
of Common Stock purchased pursuant to Options designated by the Administrator as
Performance Based Options shall be equal to or greater than the Fair Market
Value on the Date of Grant.

         6.03     DESIGNATION OF INCENTIVE STOCK OPTIONS. Except as otherwise
expressly provided in the Plan, the Administrator may designate, at the Date of
Grant of each Option to a Participant who is an employee of the Company or a
Subsidiary that is a "subsidiary corporation" as defined in Section 424(f) of
the Code, that the Option is an Incentive Stock Option under Section 422 of the
Code.

                                      -8-

<PAGE>

                  (a)      INCENTIVE STOCK OPTION SHARE LIMITATION. No
         Participant may be granted Incentive Stock Options under the Plan (or
         any other plans of the Company) which would result in stock with an
         aggregate Fair Market Value (measured on the Date of Grant) of more
         than $100,000 first becoming exercisable in any one calendar year, or
         which would entitle such Participant to purchase a number of shares
         greater than the maximum number permitted by Section 422 of the Code as
         in effect on the Date of Grant.

                  (b)      OTHER INCENTIVE STOCK OPTION TERMS. Whenever
         possible, each provision in the Plan and in every Option granted under
         this Plan which is designated by the Administrator as an Incentive
         Stock Option shall be interpreted in such a manner as to entitle the
         Option to the tax treatment afforded by Section 422 of the Code. If any
         provision of this Plan or any Option designated by the Administrator as
         an Incentive Stock Option shall be held not to comply with requirements
         necessary to entitle such Option to such tax treatment, then (i) such
         provision shall be deemed to have contained from the outset such
         language as shall be necessary to entitle the Option to the tax
         treatment afforded under Section 422 of the Code, and (ii) all other
         provisions of this Plan and the Award Agreement shall remain in full
         force and effect. If any Award Agreement covering an Option designated
         by the Administrator to be an Incentive Stock Option under this Plan
         shall not explicitly include any terms required to entitle such
         Incentive Stock Option to the tax treatment afforded by Section 422 of
         the Code, all such terms shall be deemed implicit in the designation of
         such Option and the Option shall be deemed to have been granted subject
         to all such terms. To the extent that any Option exceeds the limits of
         Section 422 of the Code, it shall constitute a Non-Qualified Stock
         Option.

         6.04     DESIGNATION OF PERFORMANCE BASED OPTIONS. Except as otherwise
expressly provided in the Plan, the Administrator may designate, at the Date of
Grant of each Option to a Participant who is an employee of the Company, the
Operating Partnership or a Subsidiary, that the Option is a Performance Based
Option. A Performance Based Option shall have a Purchase Price not less than the
Fair Market Value on the Date of Grant and shall contain such other terms and
conditions as the Administrator may deem necessary so that, upon exercise or at
any other time, the Performance Based Option does not result in or give rise to
"applicable employee remuneration" within the meaning of Section 162(m) of the
Code.

         6.05     OPTIONS GRANTED TO INDEPENDENT DIRECTORS.

                                    (a)      The Board, in its discretion, may
                  grant Non-Qualified Stock Options to Independent Directors.
                  Any such grant may vary among individual Independent
                  Directors.

                                    (b)      The exercise price per share for
                  the Common Stock covered by an Option granted under this
                  Section 6.05(a) shall be equal to the Fair Market Value of
                  Common Stock on the Date of Grant.

                                    (c)      An Option granted under Section
                  6.05(a) shall be subject to such vesting and exercisability
                  provisions as the Board may provide at the time of grant. An
                  Option issued under Section 6.05(a) shall not be exercisable
                  after the expiration of ten years from the Date of Grant.

                                      -9-

<PAGE>

         6.06     RIGHTS AS A STOCKHOLDER. The Participant or any transferee of
an Option pursuant to Section 8.02 or Section 12.05 shall have no rights as a
stockholder with respect to any shares of Common Stock covered by an Option
until the Participant or transferee shall have become the holder of record of
any such shares, and except as provided in Section 10.01, no adjustment shall be
made for dividends and cash or other property or distributions or other rights
with respect to any such shares of Common Stock for which the record date is
prior to the date on which the Participant or a transferee of the Option shall
have become the holder of record of any such shares covered by the Option.

                                  ARTICLE VII.
                            STOCK APPRECIATION RIGHTS

         7.01     POWER TO GRANT STOCK APPRECIATION RIGHTS. The Administrator is
authorized to grant to any Participant, on such terms established by the
Administrator on or prior to the Date of Grant and subject to and not
inconsistent with the provisions of this Plan, the right to receive the payment
from the Company, payable as provided in Section 7.04, of an amount equal to the
Incremental Value of the Stock Appreciation Rights, which shall be an amount
equal to the remainder derived from subtracting (i) the Exercise Price for the
right established in the Award Agreement from (ii) the Fair Market Value of a
share of Common Stock on the date of exercise. The terms of any Stock
Appreciation Right granted under the Plan shall be set forth in an Award
Agreement.

         7.02     TANDEM STOCK APPRECIATION RIGHTS. The Administrator may grant
to any Participant a Stock Appreciation Right consistent with the provisions of
this Plan covering any share of Common Stock which is, at the Date of Grant of
the Stock Appreciation Right, also covered by an Option granted to the same
Participant, either prior to or simultaneously with the grant to such
Participant of the Stock Appreciation Right, provided: (i) any Option covering
any share of Common Stock shall expire and not be exercisable upon the exercise
of any Stock Appreciation Right with respect to the same share; (ii) any Stock
Appreciation Right covering any share of Common Stock shall not be exercisable
upon the exercise of any related Option with respect to the same share; and
(iii) an Option and Stock Appreciation Right covering the same share of Common
Stock may not be exercised simultaneously.

         7.03     EXERCISE PRICE. The Exercise Price established under any Stock
Appreciation Right granted under this Plan shall be determined by the
Administrator and, in the case of a tandem Stock Appreciation Right, shall not
be less than the Purchase Price of the related Option. Upon exercise of the
Stock Appreciation Rights, the number of shares subject to exercise under a
related Option shall automatically be reduced by the number of shares of Common
Stock represented by the Option or portion thereof which is surrendered as a
result of the exercise of such Stock Appreciation Rights.

         7.04     PAYMENT OF INCREMENTAL VALUE. Any payment which may become due
from the Company by reason of Participant's exercise of a Stock Appreciation
Right may be paid to the Participant as determined by the Administrator, in its
sole discretion, as follows: (i) all in cash, (ii) all in Common Stock, or (iii)
in any combination of cash and Common Stock. In the event that all or a portion
of the payment is made in Common Stock, the number of shares of the Common Stock
delivered in satisfaction of such payment shall be determined by dividing the
amount of the payment by the Fair Market Value on the date of exercise. The
Administrator may determine whether payment upon exercise of a Stock
Appreciation Right will be made in cash or in stock, or a combination thereof,
upon or at any time prior to the exercise of such Stock Appreciation Right. No
fractional share of Common Stock shall be issued to make any payment; if any
fractional shares would be issuable, the mix of cash and Common Stock payable to
the

                                      -10-

<PAGE>

Participant shall be adjusted as directed by the Administrator to avoid the
issuance of any fractional share.

                                  ARTICLE VIII.
                 TERMS OF OPTIONS AND STOCK APPRECIATION RIGHTS

         8.01     DURATION OF OPTIONS AND STOCK APPRECIATION RIGHTS. Options and
Stock Appreciation Rights shall terminate after the first to occur of the
following events:

                  (a)      Expiration Date of the Award as provided in the Award
         Agreement; or

                  (b)      Termination of the Award as provided in Section 8.02;
         or

                  (c)      In the case of an Incentive Stock Option, ten years
         from the Date of Grant; or

                  (d)      Solely in the case of tandem Stock Appreciation
         Rights, upon the Expiration Date of the related Option or Stock
         Appreciation Right, as the case may be.

         8.02     EXERCISE ON DEATH OR TERMINATION OF SERVICE.

                  (a)      Unless otherwise provided in the Award Agreement, in
         the event of a Termination of Service as a result of the death of a
         Participant, the right to exercise all unexpired Awards shall be
         accelerated and shall accrue as of the date of death, and the
         Participant's Awards may be exercised by his Beneficiary at any time
         within one year after the date of the Participant's death.

                  (b)      Unless otherwise provided in the Award Agreement, in
         the event of Participant's Termination of Service at any time for any
         reason (including disability or retirement) other than death or for
         "cause" (as defined in subparagraph (c) below), an Award may be
         exercised, but only to the extent it was otherwise exercisable, on the
         date of Termination of Service, within ninety days after the date of
         Termination of Service. In the event of the death of the Participant
         within the ninety-day period following Termination of Service, his
         Award may be exercised by his Beneficiary within the one year period
         provided in subparagraph (a) above. Notwithstanding anything to the
         contrary herein, if the Participant violates the non-competition or
         confidentiality provisions of any employment agreement, consulting
         agreement, confidentiality or non-competition agreement or other
         agreement between the Participant and the Company, the Operating
         Partnership or a Subsidiary, the right to exercise an Award shall
         terminate immediately upon such violation.

                  (c)      In the event that a Participant's Termination of
         Service is for "cause", all Awards shall terminate immediately upon
         Termination of Service. If such Participant has a written employment
         and/or consulting agreement with the Company, "cause" shall be as
         defined in such agreement. In the absence of a written employment
         and/or consulting agreement, a Termination of Service shall be deemed
         to have been for "cause" if such termination is determined, in the sole
         discretion of the Administrator, to have resulted from: (i) the
         Participant's commission of fraud, embezzlement, theft, or a crime
         involving moral turpitude, in any case whether or not involving the
         Company, that in the opinion of the Administrator renders the
         Participant's continued employment or service detrimental to the
         Company, the Operating Partnership or any Subsidiary, or its or their
         reputation, (ii) the gross negligence or willful misconduct by the
         Participant in connection with the performance of his or her duties as
         an employee of, or consultant to, the Company, the

                                      -11-

<PAGE>

         Operating Partnership or any Subsidiary, (iii) the substantial or
         repeated failure or refusal of the Participant to perform according to
         reasonable expectations and standards set by the Board and/or
         management consistent with Participant's title and position, or (iv)
         Participant's indictment or conviction of a felony.

         8.03     EXERCISE PROCEDURES. Each Option and Stock Appreciation Right
granted under the Plan shall be exercised by written notice to the Company which
must be received by the officer of the Company designated in the Award Agreement
on or before 5 p.m. local time on the Expiration Date of the Award. The Purchase
Price of shares purchased upon exercise of an Option granted under the Plan
shall be paid in full in cash, by certified or bank check or other instrument
acceptable to the Administrator in U.S. funds payable to the order of the
Company pursuant to the Award Agreement; provided, however, that the
Administrator may (but need not) permit payment to be made by delivery to the
Company of (a) shares of Common Stock that either have been beneficially owned
by the Participant for at least six months prior to such delivery (or such other
period as may be required to avoid a charge to the Company's earnings) or were
not acquired, directly or indirectly, from the Company, (b) any combination of
the foregoing methods of payment, or (c) such other consideration as the
Administrator deems appropriate and in compliance with applicable law (including
payment in accordance with a cashless exercise program under which, if so
instructed by the Participant, shares of Common Stock may be issued directly to
the Participant's broker or dealer upon receipt of the Purchase Price in cash
from the broker or dealer). In the event that any Common Stock shall be
transferred to the Company to satisfy all or any part of the Purchase Price, the
part of the Purchase Price deemed to have been satisfied by such transfer of
Common Stock shall be equal to the product derived by multiplying the Fair
Market Value as of the date of exercise times the number of shares transferred.
The Participant may not transfer to the Company in satisfaction of the Purchase
Price (y) a number of shares which when multiplied times the Fair Market Value
as of the date of exercise would result in a product greater than the Purchase
Price or (z) any fractional share of Common Stock. Any part of the Purchase
Price paid in cash upon the exercise of any Option shall be added to the general
funds of the Company and used for any proper corporate purpose. Unless the
Administrator shall otherwise determine, any Common Stock transferred to the
Company as payment of all or part of the Purchase Price upon the exercise of any
Option shall be held as treasury shares.

                                   ARTICLE IX.
                             RESTRICTED STOCK AWARDS

         9.01     RESTRICTED STOCK AWARDS. The Administrator may, in its sole
discretion, grant or sell to any Participant, at such purchase price, if any, as
determined by the Administrator, shares of Common Stock subject to such
restrictions and conditions as the Administrator may determine at the time of
grant ("Restricted Stock"), which purchase price, if any, shall be payable in
cash or other form of consideration acceptable to the Administrator. Conditions
may be based on continuing employment or other service relationship with the
Company, the Operating Partnership or a Subsidiary and/or the achievement of
pre-established performance goals and objectives. The terms and conditions of
each Award of Restricted Stock shall be determined by the Administrator in its
sole discretion and shall be set forth in an Award Agreement executed and
delivered by the Company and the Participant, and such terms and conditions may
differ among individual Awards and Participants.

         9.02     VESTING OF RESTRICTED STOCK. The Administrator at the time of
grant shall specify the date or dates and/or the attainment of pre-established
performance goals, objectives and other conditions on which the
non-transferability of the Restricted Stock and the Company's right of
repurchase or forfeiture shall lapse. Subsequent to such date or dates and/or
the attainment of

                                      -12-

<PAGE>

pre-established performance goals, objectives and other conditions, the shares
on which all restrictions have lapsed shall no longer be restricted shares and
shall be deemed "vested." Except as otherwise determined by the Administrator in
its discretion, the vesting period of an Award of Restricted Stock shall be at
least three years, except that in the case of a Restricted Stock Award that may
become transferable and no longer subject to forfeiture upon the attainment of
pre-established performance goals, the vesting period shall be at least one
year.

         9.03     FORFEITURE OF RESTRICTED STOCK. Subject to Section 9.05, all
Restricted Stock shall be forfeited and all Restricted Stock Awards shall
terminate unless the Participant continues in the service of the Company, the
Operating Partnership or a Subsidiary until the expiration of the forfeiture and
satisfies any other conditions set forth in the Award Agreement. If the Award
Agreement shall so provide, in the case of death, disability or retirement (as
defined in the Award Agreement) of the Participant, all of the shares of
Restricted Stock shall immediately vest and any restrictions shall lapse as of
the date of such death, disability or retirement.

         9.04     DELIVERY OF SHARES UPON VESTING. Upon the lapse of the
restrictions established in the Award Agreement, the Participant shall be
entitled to receive, without payment of any cash or other consideration,
certificates for the number of shares covered by the Restricted Stock Award.

         9.05     WAIVER OR MODIFICATION OF FORFEITURE PROVISIONS. The
Administrator has full power and authority to modify or waive any or all terms,
conditions or restrictions (other than the minimum restriction period set forth
in Section 9.02) applicable to any Restricted Stock Award granted to a
Participant under the Plan; provided that no modification shall, without consent
of the Participant, adversely affect the Participant's rights thereunder.

         9.06     RIGHTS AS A STOCKHOLDER. Upon execution of an Award Agreement
setting forth the terms of the Restricted Stock and the payment of any
applicable purchase price, a Participant shall have all rights of a stockholder
with respect to the shares of Restricted Stock owned by such Participant,
including but not limited to, voting and the right to receive dividends declared
on the Common Stock, subject to such conditions contained in the applicable
Award Agreement. Unless the Administrator shall otherwise determine,
certificates evidencing the Restricted Stock shall remain in the possession of
the Company until such Restricted Stock is vested in accordance with the terms
of the Award Agreement, and the Participant shall be required, as a condition of
the grant, to deliver to the Company a stock power endorsed in blank.

                                   ARTICLE X.
             DIVIDEND EQUIVALENT RIGHTS AND OTHER STOCK BASED AWARDS

         10.01    GRANT OF DIVIDEND EQUIVALENT RIGHTS. The Administrator may
include in an Award Agreement with respect to any Award a dividend equivalent
right entitling the grantee to receive amounts equal to all or any portion of
the dividends that would be paid on the shares of Common Stock covered by such
Award if such shares had been delivered pursuant to such Award. The grantee of a
dividend equivalent right will have only the rights of a general unsecured
creditor of the Company until payment of such amounts is made as specified in
the applicable Award Agreement. In the event such a provision is included in an
Award Agreement, the Administrator shall determine whether such payments shall
be made in cash, in shares of Common Stock or in another form, whether they
shall be conditioned upon the exercise of the Award to which they relate, the
time or times at which they shall be made, and such other terms and conditions
as the Administrator shall deem appropriate.

         10.02    GRANT OF OTHER AWARDS. Other Awards of Common Stock or other
securities of the Company and other Awards that are valued in whole or in part
by reference to, or are

                                      -13-

<PAGE>

otherwise based on, Common Stock, including without limitation, convertible
preferred stock, convertible debentures, exchangeable securities, membership
interests in the Operating Partnership and Awards valued by reference to book
value or Subsidiary performance ("Other Awards"), may be granted either alone or
in addition to or in conjunction with Options or Stock Appreciation Rights under
the Plan. Subject to the provisions of the Plan, the Administrator shall have
the sole and complete authority to determine the persons to whom and the time or
times at which Other Awards shall be made, the number of shares of Common Stock
or other securities, if any, to be granted pursuant to such Other Awards, and
all other conditions of such Other Awards. Any Other Award shall be confirmed by
an Award Agreement executed by the Administrator and the Participant, which
agreement shall contain such provisions as the Administrator determines to be
necessary or appropriate to carry out the intent of this Plan with respect to
the Other Award.

         10.03    TERMS OF OTHER AWARDS. In addition to the terms and conditions
specified in the Award Agreement, Other Awards made pursuant to this Article X
shall be subject to the following:

                  (a)      Any shares of Common Stock subject to such Other
         Awards may not be sold, assigned, transferred or otherwise encumbered
         prior to the date on which the shares are issued, or, if later, the
         date on which any applicable restriction, performance or deferral
         period lapses; and

                  (b)      If specified by the Administrator and the Award
         Agreement, the recipient of an Other Award shall be entitled to
         receive, currently or on a deferred basis, interest or dividends or
         dividend equivalents with respect to the Common Stock or other
         securities covered by the Other Award; and

                  (c)      The Award Agreement with respect to any Other Award
         shall contain provisions providing for the disposition of such Other
         Award in the event of Termination of Service prior to the exercise,
         realization or payment of such Other Award, with such provisions to
         take account of the specific nature and purpose of the Other Award.

                                   ARTICLE XI.
                            PERFORMANCE BASED AWARDS

         11.01    PERFORMANCE BASED AWARDS. Notwithstanding anything to the
contrary contained herein, if any Restricted Stock Award, Deferred Stock Award
or Performance Based Option granted to a Participant is intended to qualify as
"performance-based compensation" under Section 162(m) of the Code and the
regulations promulgated thereunder (a "Performance Based Award"), such Award
shall comply with the provisions set forth in this Article XI.

         11.02    PERFORMANCE CRITERIA. The performance criteria used in
performance goals governing Performance Based Awards granted to Participants may
include any or all of the following: (i) the Company's return on equity, assets,
capital or investment: (ii) pre-tax or after-tax profit levels of the Company or
any Subsidiary, a division, an operating unit or a business segment of the
Company, or any combination of the foregoing; (iii) cash flow, funds from
operations or similar measure; (iv) total shareholder return; (v) changes in the
market price of the stock; (vi) sales or market share; or (vii) earnings per
share.

         11.03    GRANT OF PERFORMANCE BASED AWARDS. With respect to each
Performance Based Award granted to a Participant, the Administrator shall
select, within the first 90 days of a Performance Cycle (or, if shorter, within
the maximum period allowed under Section 162(m) of the Code) the performance
criteria for such grant, and the achievement targets with respect to

                                      -14-

<PAGE>

each performance criterion (including a threshold level of performance below
which no amount will become payable with respect to such Award). Each
Performance Based Award will specify the amount payable, or the formula for
determining the amount payable, upon achievement of the various applicable
performance targets. The performance criteria established by the Administrator
may be (but need not be) different for each Performance Cycle and different
goals may be applicable to Performance Based Awards to different Participants.

         11.04    PAYMENT OF PERFORMANCE BASED AWARDS. Following the completion
of a Performance Cycle, the Administrator shall meet to review and certify in
writing whether, and to what extent, the performance criteria for the
Performance Cycle have been achieved and, if so, to also calculate and certify
in writing the amount of the Performance Based Awards earned for the Performance
Cycle. The Administrator shall then determine the actual size of each
Participant's Performance Based Award, and, in doing so, may reduce or eliminate
the amount of the Performance Based Award for a Participant if, in its sole
judgment, such reduction or elimination is appropriate.

         11.05    MAXIMUM AWARD PAYABLE. The maximum Performance Based Award
payable to any one Participant under the Plan for a Performance Cycle is Five
Hundred Thousand (500,000) shares of Common Stock (subject to adjustment as
provided in Section 4.03).

                                  ARTICLE XIII.
                         TERMS APPLICABLE TO ALL AWARDS

         12.01    AWARD AGREEMENT. The grant and the terms and conditions of the
Award shall be set forth in an Award Agreement between the Company and the
Participant. No person shall have any rights under any Award granted under the
Plan unless and until the Administrator and the Participant to whom the Award is
granted shall have executed and delivered an Award Agreement expressly granting
the Award to such person and setting forth the terms of the Award.

         12.02    PLAN PROVISIONS CONTROL AWARD TERMS. The terms of the Plan
shall govern all Awards granted under the Plan, and in no event shall the
Administrator have the power to grant any Award under the Plan which is contrary
to any of the provisions of the Plan. In the event any provision of any Award
granted under the Plan shall conflict with any term in the Plan as constituted
on the Date of Grant of such Award, the term in the Plan as constituted on the
Date of Grant of such Award shall control. Except as provided in Section 4.03,
the terms of any Award granted under the Plan may not be changed after the
granting of such Award without the express approval of the Participant.

         12.03    MODIFICATION OF AWARD AFTER GRANT. Each Award granted under
the Plan to a Participant may be modified after the date of its grant by express
written agreement between the Company and the Participant.

         12.04    TAXES. Each Participant shall, no later than the date as of
which the value of an Award or of any Common Stock or other amounts received
thereunder first becomes includable in the gross income of the Participant for
federal income tax purposes, pay to the Company, or make arrangements
satisfactory to the Administrator regarding payment of, any Federal, state or
local taxes of any kind required by law to be withheld with respect to such
income. The Company, the Operating Partnership and the Subsidiaries shall, to
the extent permitted by law, have the right to deduct any such taxes from any
payment of any kind otherwise due to the Participant. The Company's obligation
to deliver stock certificates to any Participant is subject to and conditioned
on tax obligations being satisfied by the Participant. Subject to approval by
the Administrator, a Participant may elect to have the minimum tax withholding
obligation

                                      -15-

<PAGE>

satisfied, in whole or in part, by (a) authorizing the Company to withhold from
shares of Common Stock to be issued pursuant to any Award a number of shares
with an aggregate Fair Market Value (as of the date the withholding is effected)
that would satisfy the minimum withholding amount due, (b) transferring to the
Company shares of Common Stock owned by the Participant with an aggregate Fair
Market Value (as of the date the withholding is effected) that would satisfy the
minimum withholding amount due, or (c) any combination of (a) and (b).

         12.05    LIMITATIONS ON TRANSFER. Except as otherwise provided in this
Section 12.05, a Participant's rights and interest under the Plan may not be
assigned or transferred other than by will or the laws of descent and
distribution, or pursuant to the terms of a domestic relations order, as defined
in Section 414(p)(1)(B) of the Code, which satisfies the requirements of Section
414(p)(1)(A) of the Code (a "Qualified Domestic Relations Order"). During the
lifetime of a Participant, only the Participant personally (or the Participant's
personal representative or attorney-in-fact) or the alternate payee named in a
Qualified Domestic Relations Order may exercise the Participant's rights under
the Plan. The Participant's Beneficiary may exercise a Participant's rights to
the extent they are exercisable under the Plan following the death of the
Participant. Notwithstanding the foregoing, or any other provision of this Plan,
the Administrator in its sole discretion may provide in the Award Agreement that
a Participant who holds Non-Qualified Stock Options may transfer such Options to
his or her spouse, lineal ascendants, lineal descendants, or to a duly
established trust for the benefit of one or more of these individuals. Options
so transferred may thereafter be transferred only to the Participant who
originally received the Options or to an individual or trust to whom the
Participant could have initially transferred the Option pursuant to this Section
12.05. Options which are transferred pursuant to this Section 12.05 shall be
exercisable by the transferee according to the same terms and conditions as
applied to the Participant.

         12.06    GENERAL RESTRICTION. Notwithstanding anything to the contrary
herein, the Company shall have no obligation or liability to deliver any shares
of Common Stock under the Plan or to make any other distribution of benefits
under the Plan unless such delivery or distribution would comply with all
applicable laws, rules and regulations, including, without limitation, the
Securities Act of 1933, as amended, the Exchange Act and the rules and
regulations of any national securities exchange upon which the Common Stock is
traded.

         12.07    SURRENDER OF AWARDS. Any Award granted under the Plan may be
surrendered to the Company for cancellation on such terms as the Administrator
and Participant approve, including, but not limited to, terms which provide that
upon such surrender the Company will pay to the Participant cash or Common
Stock, or a combination of cash and Common Stock.

         12.08    ACCELERATION OF EXERCISE TIME. The Administrator, in its sole
discretion, shall have the right (but shall not in any case be obligated) to
permit purchase of shares under any Award prior to the time such Award would
otherwise become exercisable under the terms of the Award Agreement.

         12.09    EXTENSION OF EXERCISE TIME. The Administrator, in its sole
discretion, shall have the right (but shall not in any case be obligated) to
permit any Award granted under this Plan to be exercised after its Expiration
Date or after the ninety day period following Termination of Service, subject,
however, to the limitations described in Section 8.01 (c) and (d).

         12.10    CONDITIONS FOR EXERCISE. An Award Agreement may contain such
waiting periods, exercise dates and restrictions on exercise (including, but not
limited to, periodic installments which may be cumulative) as may be determined
by the Administrator at the Date of Grant. No Stock Appreciation Right may be
exercised prior to six months from the Date of Grant.

                                      -16-

<PAGE>

         12.11    CHANGE OF CONTROL EVENT. Unless otherwise provided in the
Award Agreement, and subject to such other terms and conditions as the
Administrator may establish in the Award Agreement, upon the occurrence of a
Change of Control Event, all outstanding Options shall become immediately
exercisable in full and all other outstanding Awards under the Plan shall become
fully vested.

                                  ARTICLE XIII.
                               GENERAL PROVISIONS

         13.01    AMENDMENT AND TERMINATION OF PLAN. The Administrator may, at
any time, amend or discontinue the Plan and the Administrator may, at any time,
amend or cancel any outstanding Award for the purpose of satisfying changes in
law or for any other lawful purpose, but no such action shall adversely effect
rights under any outstanding Award without the holder's written consent. If and
to the extent determined by the Administrator to be required by the Code to
ensure that Incentive Stock Options granted under the Plan are qualified under
Section 422 of the Code or ensure that compensation earned under Options granted
under the Plan qualifies as performance-based compensation under Section 162(m)
of the Code, if and to the extent intended to so qualify, Plan amendments shall
be subject to approval by the Company stockholders entitled to vote at a meeting
of stockholders. Nothing in this Section 13.01 shall limit the Board's authority
to take any action permitted pursuant to Section 4.03.

         13.02    NO RIGHT TO EMPLOYMENT. No employee or other person shall have
any claim or right to be granted an Award under this Plan. Neither the Plan, any
applicable Award Agreement nor any action taken hereunder or thereunder shall be
construed as giving any Participant any right to be retained in the employ of,
or service to, the Company, the Operating Partnership or a Subsidiary or
interfere in any way with the right of the Company, the Operating Partnership or
a Subsidiary to terminate the Participant's employment or service at any time.

         13.03    COMPLIANCE WITH RULE 16b-3. From and after the closing of an
Effective IPO, it is intended that the Plan be applied and administered in
compliance with Rule 16b-3. From and after an Effective IPO, if any provision of
the Plan would be in violation of Rule 16b-3 if applied as written, such
provision shall not have effect as written and shall be given effect so as to
comply with Rule 16b-3, as determined by the Administrator. The Board is
authorized to amend the Plan and to make any such modifications to Award
Agreements to comply with Rule 16b-3, as it may be amended from time to time,
and to make any other such amendments or modifications as it deems necessary or
appropriate to better accomplish the purposes of the Plan in light of any
amendments made to Rule 16b-3.

         13.04    SECURITIES LAW RESTRICTIONS. The shares of Common Stock
issuable pursuant to the terms of any Awards granted under the Plan may not be
issued by the Company without registration or qualification of such shares under
the Securities Act of 1933, as amended, and under various state securities laws
or without an exemption from such registration requirements. Unless the shares
to be issued under the Plan have been registered and/or qualified as
appropriate, the Company shall be under no obligation to issue shares of Common
Stock upon exercise of an Award unless and until such time as there is an
appropriate exemption available from the registration or qualification
requirements of federal or state law as determined by the Administrator in its
sole discretion. The Administrator may require any person who is granted an
Award hereunder to agree with the Company to represent and agree in writing that
if such shares are issuable under an exemption from registration requirements,
the shares will be "restricted" securities which may be resold only in
compliance with applicable securities laws, and that such person is acquiring
the shares issued upon exercise of the Award for investment, and not with the

                                      -17-

<PAGE>

view toward distribution. The Administrator may require the placing of such stop
orders and restrictive legends on certificates for Common Stock and Awards as it
deems appropriate.

         13.05    TRADING POLICY RESTRICTIONS. Option exercises and other Awards
under the Plan shall be subject to such Company insider-trading-policy-related
restrictions, terms and conditions as may be established by the Administrator,
or in accordance with policies set by the Administrator, from time to time.

         13.06    CAPTIONS. The captions (i.e., all section headings) used in
the Plan are for convenience only, do not constitute a part of the Plan, and
shall not be deemed to limit, characterize or affect in any way any provisions
of the Plan, and all provisions of the Plan shall be construed as if no captions
have been used in the Plan.

         13.07    NONEXCLUSIVITY OF THE PLAN. Neither the adoption of the Plan
by the Board nor the submission of the Plan to the stockholders of the Company
for approval shall be construed as creating any limitations on the power of the
Board to adopt such other incentive arrangements as it may deem desirable,
including, without limitation, the granting of stock or stock options otherwise
than under the Plan.

         13.08    LOANS TO PARTICIPANTS. Subject to applicable law, the Company
shall have the authority to make loans to Participants to facilitate the
purchase of shares of Common Stock under the Plan.

         13.09    SEVERABILITY. Whenever possible, each provision in the Plan
and every Award at any time granted under the Plan shall be interpreted in such
a manner as to be effective and valid under applicable law, but if any provision
of the Plan or any Award at any time granted under the Plan shall be held to be
prohibited or invalid under applicable law, then (a) such provision shall be
deemed amended to accomplish the objectives of the provision as originally
written to the fullest extent permitted by law and (b) all other provisions of
the Plan and every other Award at any time granted under the Plan shall remain
in full force and effect.

         13.10    NO STRICT CONSTRUCTION. No rule of strict construction shall
be implied against the Company, the Administrator, or any other person in the
interpretation of any of the terms of the Plan, any Award granted under the Plan
or any rule or procedure established by the Administrator.

         13.11    CHOICE OF LAW. This Plan and all Awards and actions taken
thereunder shall be governed by, and construed in accordance with, the laws of
the State of Delaware, applied without regard to the conflict of law principles.

                                      -18-

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