| Date of Grant:     | << grant date>> (“Award Date”)                        |
|-------------------------|-------------------------------------------------------------------------------|
| Number of Shares:  | << number of shares>> shares (“Award Shares”)         |
| Vesting:           | <<insert vesting schedule>>, subject to the Terms and Conditions. |

|  DYNEX CAPITAL, INC.   |   |  EMPLOYEE              |
|-----------------------------|--------|-----------------------------|
|                        |   |                        |
|                        |   |                        |
|                        |   |                        |
|  << name>> |   |  << name>> |
| <<title>>       |   |                        |
|                        |   |                        |
|                        |   |                        |
|  Date                  |   |  Date                  |

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| (a)   | Subject to earlier vesting or forfeiture as provided below, the period of restriction (the “Period of Restriction”) applicable to [Use for Installment Vesting Only: each portion of] the Award Shares is the period from the Award Date through the date[s] provided on the Summary Page, provided Employee remains employed with the Company or any Related Entity through such date. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Except as contemplated in Paragraph 2(c), the Award Shares, and the rights and privileges conferred hereby, may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, otherwise than by will or by the laws of descent and distribution, and shall not be subject to execution, attachment or similar process, during the Period of Restriction.  Except as otherwise provided pursuant to Paragraph 2(c), the Award Shares as determined pursuant to Paragraph 2(a) shall become freely transferable by Employee as of the last day of the [Use for Installment Vesting Only: relevant] Period of Restriction. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Subject to earlier forfeiture as provided in Paragraph 6 below, in the event a Vesting Acceleration Event occurs while Employee is an employee of the Company or a Related Entity and prior to the end of the Period of Restriction [Use for Installment Vesting Only: applicable to any portion of the Award Shares], immediate vesting shall occur and the Period of Restriction shall end for [Use for Installment Vesting Only: such portion of] the Award Shares, and the Award Shares shall be free of restrictions and freely transferable on the date of such Vesting Acceleration Event. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | The following terms have the following meanings for purposes hereof: |
|-----------------|----------------------------------------------------------------------|

| (i)   | “Cause” shall have the meaning set forth in any written employment or severance agreement between the Employee and the Company in effect at the time of the termination (the “Employment Agreement”) or, if none, shall mean(A)  the continued failure of Employee to perform substantially Employee’s duties with the Company (other than any such failure resulting from incapacity due to physical or mental illness), if, within 30 days of receiving a written demand for substantial performance from the Board, Chief Executive Officer, President, or Chief Operating Officer of the Company which specifically identifies the manner in which Employee has not substantially performed his duties, Employee shall have failed to cure such performance or to take measures to cure the performance, or (B)  the engaging by Employee in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company.   |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | “Vesting Acceleration Event” shall mean the occurrence of a Change in Control (as defined in the Plan), the Employee’s termination of employment due to becoming “disabled” (as defined in the Employment Agreement or, if none, for purposes of Section 22(e)(3) of the Internal Revenue Code), the Employee’s death, the Employee’s retirement, with the consent of the Committee or its delegate, at or after age sixty-five (65) where there is no Cause (as defined herein) for the Company to terminate theEmployee’s employment, the termination of the Employee’s employment with the Company and any Related Entity by the Company other than for Cause (as defined |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | herein), the termination of the Employee’s employment with the Company and any Related Entity by the Employee for “good reason” (as defined in the Employment Agreement) but only if the Employee has an Employment Agreement that is in effect at the time of termination and the Employment Agreement defines the term “good reason”. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | The Company shall issue the Award Shares either: (i) in certificate form, or (ii) in book-entry form, registered in the name of Employee with notations as to any restrictions on transfer imposed under this Agreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Any certificates representing [Use for Installment Vesting Only: any of] the Award Shares shall be held by the Company until the Period of Restriction with respect to [Use for Installment Vesting Only: any of] the Award Shares lapses or until the Award Shares are forfeited hereunder.  During the Period of Restriction, any Award Shares issued in book-entry form shall be subject to the following legend and any certificates representing the Award Shares shall bear the following legend: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Promptly after the Period of Restriction lapses for any of the Award Shares, the Company shall either remove the relevant notations for such Award Shares issued in book-entry form or deliver to Employee a certificate(s) evidencing the number of Award Shares as to which the Period of Restriction has lapsed. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | By execution of this Agreement (which shall constitute the Stock Power contemplated in the Plan), Employee hereby appoints the Secretary of the Company, with full power of substitution, as Employee’s attorney in fact with power and authority in the name and on behalf of Employee to take any action and execute all documents and instruments, including without limitation stock powers, which may be necessary to transfer any forfeited Award Shares (or shares otherwise reacquired or withheld by the Company hereunder), to the Company as may be required pursuant to the Plan or this Agreement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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