Document:

Exhibit 10.2

 Exhibit 10.2 
 FORM OF AMENDED AND RESTATED VOTING AGREEMENT 
  
  
 AMENDED AND RESTATED VOTING AGREEMENT

 by and among 
 FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. 
 (d/b/a ARLINGTON ASSET INVESTMENT CORP.), 
 FBR TRS HOLDINGS, INC., 
 FBR
CAPITAL MARKETS CORPORATION, 
 FOREST HOLDINGS (ERISA) LLC, 
 and 
 FOREST HOLDINGS LLC 
 dated as of 
 May     , 2009 
  
  

 TABLE OF CONTENTS 
 ARTICLE 1 
 DEFINITIONS 
  

			
	 Section 1.1 Definitions
	  	2

 ARTICLE 2 
 BOARD COMPOSITION 
  

			
	 Section 2.1 Composition of the Board
	  	3
	 Section 2.2 Composition of Subsidiary Boards
	  	5
	 Section 2.3 Continuing Committee Representation
	  	5
	 Section 2.4 Scale-Back of Crestview Board Representation
	  	5
	 Section 2.5 Scale-Back of FBR TRS Board Representation
	  	6
	 Section 2.6 Implementation.
	  	6
	 Section 2.7 Observer Status
	  	6

 ARTICLE 3 
 COVENANTS AND OTHER AGREEMENTS 
  

			
	 Section 3.1 Affiliate Transactions
	  	7
	 Section 3.2 FBR TRS Voting
	  	7
	 Section 3.3 Termination of the Governance Agreement
	  	7

 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES 
  

			
	 Section 4.1 Representations and Warranties
	  	8

 ARTICLE 5 
 MISCELLANEOUS 
  

			
	 Section 5.1 Term
	  	8
	 Section 5.2 Counterparts
	  	8
	 Section 5.3 Governing Law
	  	9
	 Section 5.4 Entire Agreement
	  	9
	 Section 5.5 Specific Performance
	  	9
	 Section 5.6 Notices
	  	9
	 Section 5.7 Assignment; Transfers.
	  	10
	 Section 5.8 Headings
	  	11
	 Section 5.9 Amendments and Waivers
	  	11
	 Section 5.10 Interpretation; Absence of Presumption
	  	11

  

 -i- 

			
	 Section 5.11 Severability
	  	11
	 Section 5.12 Jurisdiction
	  	11
	 Section 5.13 Waiver of Jury Trial
	  	12
	 Section 5.14 Further Assurances
	  	12
	 Section 5.15 Recapitalization, Etc
	  	12
	 Section 5.16 FBR Group Guarantee
	  	12
	 Section 5.17 FBR TRS Acknowledgment
	  	12
	 Section 5.18 Acknowledgement Regarding Director Agreement
	  	12

  

 -ii- 

 AMENDED AND RESTATED VOTING AGREEMENT 
 THIS AMENDED AND RESTATED VOTING AGREEMENT (this “Agreement”) is dated as of May __, 2009, and is by and among Friedman, Billings,
Ramsey Group, Inc. (d/b/a Arlington Asset Investment Corp.), a Virginia corporation (“FBR Group”), FBR TRS Holdings, Inc., a Virginia corporation (“FBR TRS”), FBR Capital Markets Corporation, a Virginia corporation
(“FBR” or the “Company”), Forest Holdings (ERISA) LLC, a Delaware limited liability company (“Crestview ERISA”), and Forest Holdings LLC, a Delaware limited liability company (“Crestview
LLC” and together with Crestview ERISA, “Crestview”). FBR Group, FBR TRS, the Company, and Crestview are sometimes referred to herein individually as a “Party” and collectively as the
“Parties”. 
 RECITALS 
 WHEREAS, FBR Group, FBR TRS, FBR and Crestview entered into a letter agreement on June 22, 2006, as amended on July 14, 2006, setting forth the principal terms and conditions pursuant to which Crestview
would acquire Shares concurrently with the 144A private placement of Shares, and be granted options to acquire additional Shares (the “Options”) from the Company, which letter agreement contemplated that the parties thereto would
further memorialize their agreements with respect to such transactions in definitive agreements; 
 WHEREAS, FBR and Crestview entered into
an Investment Agreement, dated as of July 19, 2006 (the “Investment Agreement”), setting forth, inter alia, the terms and conditions pursuant to which Crestview acquired the Original Shares from the Company and was granted the
Options; 
 WHEREAS, following consummation of the transactions contemplated by the Investment Agreement, Crestview has owned a significant
percentage of the equity interests in the Company; 
 WHEREAS, in conjunction with the entering into of the Investment Agreement, the Parties
entered into that certain Voting Agreement, dated as of July 20, 2006 (the “Voting Agreement”), providing for, among other things, certain voting rights of the Parties in accordance with Section 13.1-671 of the Virginia
Stock Corporation Act; 
 WHEREAS, in conjunction with the entering into of the Investment Agreement, FBR Group, FBR TRS, Crestview ERISA,
and Crestview LLC entered into that certain Governance Agreement, dated as of July 20, 2006 (the “Governance Agreement”), providing for, among other things, certain tag-along rights, rights of first offer, and rights of first
refusal; 
 WHEREAS, pursuant to that certain Stock Repurchase Agreement, dated as of May     , 2009, by and
between the Company, FBR TRS and FBR Group (the “Repurchase Agreement”), the Company has agreed to repurchase certain Shares that are currently held by FBR TRS; 
 WHEREAS, in connection with the Repurchase Agreement and consummation of the transactions contemplated thereby, the Parties desire to amend and restate
the Voting Agreement as more fully set forth herein; and 
  

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 WHEREAS, in connection with the Repurchase Agreement and consummation of the transactions contemplated
thereby, FBR Group, FBR TRS, Crestview ERISA, and Crestview LLC desire to terminate the Governance Agreement. 
 NOW, THEREFORE, in
consideration of the premises and the covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties agree
as follows: 
 AGREEMENT 
 ARTICLE 1 
 DEFINITIONS 
 Section 1.1 Definitions. Capitalized terms not defined herein shall have their respective meanings specified in the Investment Agreement. As used in this Agreement, the following terms shall have the following
respective meanings: 
 “AAI Designees” shall have the meaning specified in Section 2.1. 
 “Board” shall mean the board of directors of the Company. 
 “Cause” shall mean the Director’s commission of a felony or any other crime involving moral turpitude or of a material dishonest act or fraud against the Company or any of its Affiliates, or any
act or omission by the Director that is the result of misconduct or bad faith and that is, or may reasonably be expected to be, materially injurious to the Company or any of its Affiliates. 
 “Crestview Designees” shall have the meaning specified in Section 2.1. 
 “Director” shall mean a member of the Board. 
 “Director Agreement” shall mean that certain Director Agreement, dated as of December 21, 2008, by and between Eric F. Billings and the Company. 
 “Independent Directors” shall have the meaning specified in Section 2.1. 
 “Original Shares” shall mean the number of Shares acquired by Crestview with the Invested Capital (including Shares issued in respect
of, in exchange for or in substitution of such Shares by reason of any Reorganization). 
 “Reorganization” shall mean any
reorganization, recapitalization, stock dividend, stock split or any similar change in the capital structure of the Company. 
 “Shares” shall mean shares of common stock, par value $0.001 per share, of the Company. 
  

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 ARTICLE 2 
 BOARD COMPOSITION 
 Section 2.1 Composition of the Board. 
 (a) Board. (i) From and after the date hereof, the Board shall consist of nine Directors, who shall be nominated as follows: 
  

	 	(A)	one Director shall be designated for election or appointment, as applicable, by Crestview ERISA, and one Director shall be designated for election or appointment, as applicable, by
Crestview LLC (collectively, the “Crestview Designees”); 

  

	 	(B)	two Directors shall be designated for election or appointment, as applicable, by FBR TRS, one of which Directors shall be Eric F. Billings for so long as he is entitled to be
nominated for election to the Board pursuant to the Director Agreement, and the other of which Directors shall be designated for election or appointment, as applicable, by FBR TRS after good faith consultation with the Company, and initially shall
be Ralph S. Michael, III (the “AAI Designees”); provided, that if Eric F. Billings (1) is no longer entitled to be nominated for election to the Board pursuant to the Director Agreement, or (2) no longer desires to serve
as a Director, then FBR TRS shall be entitled to designate a replacement Director for election or appointment, as applicable, after good faith consultation with the Company; 

  

	 	(C)	four Directors who shall be independent within the meaning of the rules promulgated by the SEC and the exchange(s) on which the Shares are listed (the “Independent
Directors”) shall be designated for election or appointment, as applicable, by the Board (acting by majority vote), who shall be reasonably acceptable to Crestview; and 

  

	 	(D)	one Director shall be designated for election or appointment, as applicable, by the Board (acting by majority vote), which Director shall be the Chief Executive Officer of the
Company. 

  

	 	(ii)	The Crestview Designees, the AAI Designees, the Independent Designees and the Chief Executive Officer of the Company will be elected or appointed, as applicable, (or re-elected or
re-appointed, as the case may be) and seated as Directors at the Company’s next annual meeting after the date hereof and at each annual or special meeting thereafter. 

 (b) Removal and Replacement of Directors. Directors may be removed from office and replaced as follows (it being understood that the following
shall be effected in a manner that is not in violation of the Virginia Stock Corporation Act or the Articles of Incorporation or Bylaws of the Company regarding removal of directors. That is, removal of any director shall be subject to the approval
of the holders of a majority of the outstanding Shares): 
  

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	 	(i)	Any Party may designate any or all of its own designees for removal from the Board (or any Subsidiary or Committee, as applicable) and may designate a nominee for appointment to the
Board to fill any vacancy resulting from any such removal; provided, however, that FBR TRS shall not have authority to remove and/or replace Eric F. Billings from the Board for so long as he is entitled to be nominated for election to
the Board pursuant to the Director Agreement. 

  

	 	(ii)	For so long as Crestview has the right to designate one Director nominee for election or appointment, as applicable, to the Board pursuant to this Article 2, FBR TRS may not
take any action to cause the removal of a Crestview Designee except for Cause and in that event the relevant Crestview entity may nominate a replacement for the Director so removed. 

  

	 	(iii)	For so long as FBR TRS has the right to designate one Director nominee for election or appointment, as applicable, to the Board pursuant to this Article 2, Crestview may not
take any action to cause the removal of an AAI Designee except for Cause and in that event FBR TRS may nominate a replacement for the Director so removed. 

  

	 	(iv)	The Board (acting by majority vote) shall have the right to designate for removal any or all of the Directors (other than the Crestview Designees and the AAI Designees) at any time
and shall have the right to designate a nominee (consistent with the provisions of Section 2.1(a)(i)(C) and Section 2.1(a)(i)(D)) to fill the vacancy resulting from any such removal or any vacancy created as a result of
Crestview or FBR TRS losing its right to designate a Director nominee pursuant to Section 2.4 or Section 2.5, respectively; provided that the Board shall consult with Crestview with respect to the selection of a
replacement for any Independent Director as provided in Section 2.1(b)(v). 

  

	 	(v)	For so long as Crestview has the right to designate one Director nominee for election or appointment, as applicable, to the Board pursuant to this Article 2, in the event of
a vacancy created by the departure (for any reason, including death, disability, retirement, resignation or removal (with or without cause)) of an Independent Director, the Board (acting by majority vote) shall have the right to designate a
replacement Independent Director who shall be reasonably acceptable to Crestview for appointment to fill the vacancy resulting from such departure; provided that if the Board and Crestview are unable to agree on the replacement Independent
Director (x) the Board shall have the right to designate the replacement Independent Director for appointment to fill the vacancy resulting from such departure to serve until such time as the Board and Crestview can agree on a permanent
replacement, and (y) if the Board and Crestview are unable to agree on a permanent replacement Independent Director within 45 days after the creation of such vacancy, the remaining permanent Independent Directors, if any, shall have the right
to designate the permanent replacement Independent Director for appointment to fill the vacancy resulting from such departure after consultation with both the remaining members of the Board and Crestview. 

  

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 Section 2.2 Composition of Subsidiary Boards. Each of the Parties agrees that, for so long as
Crestview has the right to designate one Director nominee for election or appointment, as applicable, to the Board pursuant to this Article 2, Crestview shall have the right to designate one of the Crestview Designees (or another
representative reasonably acceptable to the Board) for election or appointment, as applicable, to the board of directors of each Subsidiary of the Company other than the direct and indirect Subsidiaries of the Company that are registered investment
advisers; provided that to the extent that applicable Law does not permit such Crestview Designee (or other representative reasonably acceptable to the Board) to serve as a member of any such Subsidiary board of directors, such Crestview
Designee shall be entitled to observer status on such board of directors. The Company hereby agrees to take such action (and to cause its officers and Subsidiaries to take such action), including but not limited to voting its shares of capital stock
in each of its Subsidiaries, as shall be necessary in order to carry out the intents and purposes of this Section 2.2. 
 Section
2.3 Continuing Committee Representation. Each of the Parties agrees that: 
 (a) For so long as Crestview has the right to designate
one Director nominee for election or appointment, as applicable, to the Board pursuant to this Article 2, each Committee of the Board, to the extent permitted by applicable Law (including the rules of the exchange on which the Shares are
listed), shall have as a member at least one Crestview Designee; provided that to the extent such applicable Law does not permit such designee(s) to be full members of such Committees, such designee(s) shall be entitled to observer status on
such Committees. 
 (b) For so long as FBR TRS has the right to designate one Director nominee for election or appointment, as applicable, to
the Board pursuant to this Article 2, each Committee of the Board, to the extent permitted by applicable Law (including the rules of the exchange on which the Shares are listed), shall have as a member at least one AAI Designee;
provided that to the extent such applicable Law does not permit such designee(s) to be full members of such Committees, such designee(s) shall be entitled to observer status on such Committees. 
 Section 2.4 Scale-Back of Crestview Board Representation. Each of the Parties agrees that: 
 (a) From the time that (1) Crestview and its Affiliates who become parties to this Agreement
cease to own at least 66 2/3% of the Original
Shares, Crestview LLC shall no longer be entitled to designate a nominee for election or appointment to the Board, and (2) Crestview and its Affiliates who become parties to this Agreement cease to own at least 33 1/3% of the number of Original Shares, Crestview ERISA shall
no longer be entitled to designate a nominee for election or appointment to the Board, and upon either of the foregoing, the applicable Crestview Designee shall be replaced by an additional Independent Director nominee designated for election or
appointment to the Board by the Board (acting by majority vote), who shall be, in the case of clause (1) above only, reasonably acceptable to Crestview. 
 (b) From and after such time as Crestview and its Affiliates cease to own at least 66 2/3% of the Original Shares, Crestview shall have no further
approval rights with respect to Independent Directors. 
  

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 Section 2.5 Scale-Back of FBR TRS Board Representation. Each of the Parties agrees that, from the
time that FBR TRS and its Affiliates who become parties to this Agreement cease to own at least 10% of the outstanding Shares, FBR TRS shall no longer be entitled to designate a nominee for election or appointment to the Board, and upon such event,
the AAI Designees shall be replaced by additional Independent Director nominees designated for election or appointment to the Board by the Board (acting by majority vote), who shall be reasonably acceptable to Crestview. 
 Section 2.6 Implementation. 
 (a) Each
of the Parties agrees that it shall (and shall cause its Affiliates to) cooperate in facilitating any action described in or required by this Agreement, including by voting all of the Shares under its control in support of such action. Without
limiting the generality of the foregoing, each of the Parties agrees that it shall (and shall cause its Affiliates to) vote its Shares or execute consents, as the case may be, and take all other necessary action (including nominating such designees
and calling an annual or special meeting of stockholders) in order to ensure that the composition of the Board is as set forth in this Article 2 and otherwise to give effect to the provisions of this Article 2. Each Party shall vote
its Shares, and shall take all other actions necessary, to ensure that the Articles of Incorporation and Bylaws of the Company facilitate and do not at any time conflict with any provision of this Agreement; provided that no action shall be
required to be taken that is, and no amendment to the Articles of Incorporation or Bylaws shall be adopted that is, inconsistent with any provision in the Virginia Stock Corporation Act. Notwithstanding any other provision in this Agreement, and
commencing after the Company’s Annual Meeting of Shareholders to be held on June 4, 2009, FBR TRS and FBR Group shall only be obligated or required under this Article 2 to vote its Shares in favor of the election of the Crestview
Designees. 
 (b) The Company agrees that it will (and will cause its officers and its Subsidiaries to) take all such action as shall be
necessary (including by voting all shares of capital stock or other equity interests that it holds in each of its Subsidiaries, either in a meeting or in an action by written consent) to ensure that the articles of incorporation and bylaws or other
applicable governing documents of each of its Subsidiaries are consistent with, and do not conflict with, any provision of this Agreement and that the boards of directors, general partners, managing members or other applicable governing body or
persons for each such Subsidiary shall act in accordance with the provisions of this Agreement and that each Subsidiary board of directors or other applicable governing body is as set forth in Article 2; provided that no action shall
be required that is, and no amendment to the articles of incorporation, bylaws or other similar organizational documents shall be adopted that is, inconsistent with any provision in the Virginia Stock Corporation Act. 
 Section 2.7 Observer Status. Each of the Parties agrees that, during the periods described below in this Section 2.7, to the extent
not inconsistent with the requirements of the Virginia Stock Corporation Act and to the extent otherwise as permitted by Law, Crestview ERISA shall have the right to appoint one representative (the “Representative”) to attend each
meeting of the Board as a non-voting observer, whether such meeting is conducted in person or by teleconference. The Representative shall have the right to present matters for consideration by the Board and to speak on matters presented by others.
The Company shall cause the 

  

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Representative to be provided with all communications and materials that are provided by the Company or its consultant to the members of the Board generally,
at the same time and in the same manner that such communications and materials are provided to such members, including all notices, board packages, reports, presentations, minutes and consents. The Representative shall be entitled to meet and
consult with the senior executive management team of the Company on a quarterly basis to discuss the quarterly and annual business plans of the Company and its Subsidiaries and to review the progress of the Company and its Subsidiaries in achieving
their plans. In addition, upon request to the Chief Executive Officer of the Company, the members of the senior executive management team of the Company shall make themselves available during normal business hours to meet with the Representative on
an interim basis, as the Representative may reasonably request from time to time. Upon reasonable request by the Representative to the Chief Executive Officer of the Company, the Representative shall be entitled, at the Representative’s cost
and expense, to inspect the books and records and the facilities of the Company and its Subsidiaries during normal business hours and to request and receive reasonable information regarding the financial condition and operations of the Company and
its Subsidiaries. The right of Crestview ERISA to appoint a Representative, and the rights of that Representative described above, shall exist (i) solely during the periods, if any, in which Crestview ERISA does not have the right to designate
any member for nomination for election to the Board or no person designated for nomination by Crestview under Article 2 is serving as a member of the Board, and (ii) solely for so long Crestview ERISA is intended to qualify (and only as
reasonably required for Crestview to qualify) as a “venture capital operating company” under U.S. Department of Labor Regulation 29 C.F.R. Section 2510.3-101. Notwithstanding the foregoing, (1) the Company shall be permitted to
exclude a Representative from meetings and from receiving certain information if, based on the advice of counsel, such exclusion is necessary or advisable to protect the attorney-client or any other legal privilege, and (2) such Representative
shall be subject to Sections 5.06 and 5.07 of the Investment Agreement. 
 ARTICLE 3 
 COVENANTS AND OTHER AGREEMENTS 
 Section 3.1 Affiliate Transactions. Each of the Parties agrees that any transaction, agreement or arrangement (including amendments, waivers or terminations of agreements or arrangements) between the Company or any of its
Subsidiaries, on the one hand, and FBR Group and its Affiliates (excluding the Company and its Subsidiaries but including FBR TRS), on the other hand, shall be subject to approval by a majority of the Board other than the AAI Designees. 

Section 3.2 FBR TRS Voting. Each of FBR TRS and FBR Group (on behalf of itself and its Affiliates) agrees that, from and after the date hereof
and until completion of the Company’s Annual Meeting of Shareholders to be held on June 4, 2009, in addition to voting in accordance with the terms of Article 2 with respect to the election of Directors, it (or such Affiliates)
shall vote on all other matters presented to the stockholders of the Company for a vote thereon in accordance with the recommendation of the Board. 
 Section 3.3 Termination of the Governance Agreement. Each of Crestview ERISA and Crestview LLC waives any rights they may have had pursuant to Section 2.4 of the Governance Agreement in connection with the Repurchase Agreement
and the transactions 

  

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contemplated thereby, and each of FBR Group, FBR TRS, Crestview ERISA, and Crestview LLC agree that the Governance Agreement is hereby terminated in its
entirety. 
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES 
 Section 4.1 Representations and Warranties. Each of the Parties represents and
warrants to each of the other Parties that: 
 (a) it is an entity duly organized and validly existing and in good standing under the laws of
its jurisdiction of formation, with requisite power and authority to execute and deliver this Agreement, and to consummate the transactions contemplated hereby; 
 (b) the execution, delivery and performance by it of this Agreement, and the consummation by it of the transactions contemplated hereby and compliance by it with the terms hereof will not conflict with, or result in
any breach of or constitute a default under, (i) any provision of its certificate of incorporation or formation or bylaws, or equivalent constitutive documents, (ii) any provision of any contract or other agreement or instrument to which
it is a party or by which it or its properties are bound, or (iii) any federal, state, local or foreign law, regulation or rule or any decree, judgment, permit or order applicable to it, except in the case of clauses (ii) or (iii) for
such conflicts, breaches or defaults which have been validly waived or would not reasonably be expected to have a material adverse effect on it or on its ability to perform its obligations under this Agreement; and 
 (c) this Agreement has been duly authorized, executed and delivered by it and is enforceable against it in accordance with its terms, except in each case
as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally, and by general principles of equity. 
 ARTICLE 5 
 MISCELLANEOUS 
 Section 5.1 Term. The rights and obligations specified in this Agreement shall expire (unless earlier expired or terminated in accordance with the
terms hereof) at such time as Crestview and its Affiliates who are parties to this Agreement cease to own at least one percent (1%) of the Original Shares. The rights of FBR TRS under this Agreement, and the obligations of the other Parties
with respect to such rights of FBR TRS, shall expire (unless earlier expired or terminated in accordance with the terms hereof) at such time as FBR TRS and its Affiliates who are parties to this Agreement cease to own at least 10% of the
outstanding Shares; provided, however, that FBR TRS and its Affiliates and any transferees referenced in Section 5.7(b), as applicable, so long as FBR TRS or any such transferee continues to own any capital stock of the
Company, shall continue to be bound by their obligations under Section 2.6(a), which, after the Company’s Annual Meeting of Shareholders to be held on June 4, 2009, shall be only to vote its Shares in favor of the election of
the Crestview Designees. 
 Section 5.2 Counterparts. This Agreement may be executed in one or more counterparts, all of which shall
be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to 

  

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each other Party. Copies of executed counterparts transmitted by telecopy, telefax or other electronic transmission service shall be considered original
executed counterparts for purposes of this Section 5.2, provided receipt of copies of such counterparts is confirmed. 
 Section 5.3 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF VIRGINIA WITHOUT REFERENCE TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. 
 Section 5.4 Entire Agreement. This Agreement, together with the Investment Agreement and the other agreements contemplated thereby, contains the
entire agreement between the Parties with respect to the subject matter hereof and there are no agreements, understandings, representations or warranties between the Parties other than those set forth or referred to herein. This Agreement is not
intended to confer upon any Person not a Party hereto (or their successors and assigns) any rights or remedies hereunder. 
 Section 5.5
Specific Performance. The Parties acknowledge and agree that a breach or threatened breach, of any agreement contained herein, including, without limitation, those contained in Article 2, will cause irreparable damage, and the other
Parties will have no adequate remedy at law or in equity. Accordingly, each Party agrees that injunctive relief or other equitable remedy, in addition to remedies at law or in damages, is the appropriate remedy for any such failure and will not
oppose the granting of such relief. 
 Section 5.6 Notices. All notices, requests, demands or other communications required by or
otherwise with respect to this Agreement shall be in writing and shall be deemed to have been duly given to any Party when delivered by hand, by messenger, or by a nationally recognized overnight delivery company, when delivered by telecopy and
confirmed by return telecopy, or when delivered by first-class mail, postage prepaid and return receipt requested, in each case to the applicable addresses set forth below. Notices to the Company shall be addressed to: 
 FBR Capital Markets Corporation 
 1001 Nineteenth Street North 
 Arlington, VA 22209 
 Attention: Chief Legal Officer 
 Telecopy Number: (703) 469-1140 
 or at such other address and to the attention of such other Person as the Company may
designate by written notice to the other Parties. Notices to FBR Group and FBR TRS shall be addressed to such Party in care of: 
 Friedman, Billings, Ramsey Group, Inc. 
 (d/b/a Arlington Asset Investment Corp.) 
 1001 Nineteenth Street North 
 Arlington, VA 22209 
 Attention: Chief Executive Officer 
 Telecopy Number: (703) 469-1145 
  

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 or at such other address and to the attention of such other Person as FBR Group or FBR TRS may designate by written
notice to the other Parties. Notices to Crestview shall be addressed to: 
 Forest Holdings LLC 
 Forest Holdings (ERISA) LLC 
 c/o Crestview Partners, L.P. 
 667 Madison Avenue 
 New York, NY 10065 
 Attention: Tom Murphy 
 Telecopy Number: (212) 906-0750 
 with a copy to: 
 Davis
Polk & Wardwell 
 450 Lexington Avenue 
 New York, NY 10017 
 Attention: Carole Schiffman, Esq. 
 Telecopy Number: (212) 450-3800 
 or at such other address and to the attention of such other Person as Crestview may designate by written notice to the other Parties. 
 Section 5.7 Assignment; Transfers. 
 (a) Assignment. Subject to the immediately following sentence, the rights of each Party specified herein are personal to such Party and will not pass to any acquiror of such Party’s Shares; provided that nothing herein
shall prevent FBR TRS or its Affiliates from Transferring or causing any Affiliate to Transfer any of its Shares or, subject to the immediately following sentence and Section 5.7(b) below, impose any obligations or restrictions on any
acquiror of such Shares. If any Party other than the Company (or any of their respective permitted assignees) transfers Shares to any of their Affiliates (which Transfers shall be expressly permitted hereunder, subject to compliance with the
remainder of this sentence), such Affiliates shall become bound by all the provisions of this Agreement pursuant to an agreement reasonably satisfactory to such other Parties. Except as otherwise specifically provided in this Agreement, neither this
Agreement nor any right, remedy obligation or liability arising hereunder or by reason hereof shall be assignable by any Party. 
 (b)
Transfers by FBR TRS. In the event FBR TRS sells or otherwise transfers Shares representing at least a 10% interest in the Company to any Person or group of Persons, FBR TRS will require such Person or group only to be bound by the
obligations of FBR TRS set forth in Section 2.6(a) of this Agreement, which with respect to any such Person or group of Persons, after the Company’s Annual Meeting of Shareholders to be held on June 4, 2009, shall only be to
vote its Shares in favor of the election of the Crestview Designees; provided, however, that this Section 5.7(b) shall not apply with respect to the transfer of Shares from FBR TRS to the Company pursuant to the Repurchase
Agreement. 
  

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 Section 5.8 Headings. The Section, Article and other headings contained in this Agreement are
inserted for convenience of reference only and will not affect the meaning or interpretation of this Agreement. 
 Section 5.9 Amendments
and Waivers. This Agreement may not be modified or amended except by an instrument or instruments in writing signed by the Parties. Any Party may, only by an instrument in writing, waive compliance by the other Parties with any term or provision
hereof on the part of such other Parties to be performed or complied with. The waiver by any Party of a breach of any term or provision hereof shall not be construed as a waiver of any subsequent breach. 
 Section 5.10 Interpretation; Absence of Presumption. (a) For the purposes hereof, (i) words in the singular shall be held to include the
plural and vice versa and words of one gender shall be held to include the other gender as the context requires, (ii) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise
stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement, and Article, Section and paragraph references are to the Articles, Sections and paragraphs to this Agreement unless otherwise
specified, (iii) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless the context otherwise requires or unless otherwise specified, (iv) the
word “or” shall not be exclusive, and (v) provisions shall apply, when appropriate, to successive events and transactions. 
 (b) This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting or causing any instrument to be drafted. 
 Section 5.11 Severability. If any provision of this Agreement or the application of such provision to any Person or circumstances shall be held
invalid or unenforceable by a court of competent jurisdiction, such provision or application shall be unenforceable only to the extent of such invalidity or unenforceability, and the remainder of the provision held invalid or unenforceable and the
application of such provision to Persons or circumstances, other than the Party as to which it is held invalid, and the remainder of this Agreement, shall not be affected. 
 Section 5.12 Jurisdiction. The Parties agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter
arising out of or in connection with this Agreement or the transactions contemplated hereby or thereby shall be brought in the United States District Court for the Southern District of New York or any New York State court sitting in New York City,
so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of New
York, and each of the Parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law,
any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.
Process in any such suit, action or proceeding may be served on any Party anywhere in the world, whether 

  

 11 

 
within or without the jurisdiction of any such court. Without limiting the foregoing, each Party agrees that service of process on such Party as provided in
Section 5.6 shall be deemed effective service of process on such Party. 
 Section 5.13 Waiver of Jury Trial. EACH OF THE
PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 Section 5.14 Further Assurances. The Parties agree that, from time to time, each of them will, and will cause their respective Affiliates to,
execute and deliver such further instruments and take such other action as may be necessary to carry out the purposes and intents hereof. 
 Section 5.15 Recapitalization, Etc. In the event that any capital stock or other securities are issued in respect of, in exchange for, or in substitution of, any Shares by reason of any Reorganization, appropriate adjustments shall
be made with respect to the relevant provisions of this Agreement so as to fairly and equitably preserve, as far as practicable, the original rights and obligations of the Parties under this Agreement; provided, however, that this
Section 5.15 shall not apply with respect to the transactions contemplated by the Repurchase Agreement. 
 Section 5.16 FBR
Group Guarantee. FBR Group hereby guarantees to the Crestview the prompt and full discharge by FBR TRS of all of FBR TRS’ covenants, agreements and obligations under this Agreement including the due and punctual payment of all amounts which
are or may become due and payable by FBR TRS hereunder, when and as the same shall become due and payable in accordance with the terms hereof. 
 Section 5.17 FBR TRS Acknowledgment. FBR TRS hereby acknowledges Section 5.07 of the Investment Agreement and agrees to waive any breach of fiduciary duty owed by Crestview or any of its Affiliates (including their respective
designees serving on the Board or the boards of directors of the Company’s Subsidiaries) to the extent (and subject to the obligations of Crestview) set forth in such Section 5.07. 
 Section 5.18 Acknowledgement Regarding Director Agreement. Notwithstanding any provision contained in this Agreement or any other agreement, the
Parties hereby acknowledge that nothing contained herein or therein shall abrogate any of the rights of Eric F. Billings or the Company under or with respect to the Director Agreement. 
 Section 5.19 Directors’ Fiduciary Duties. Notwithstanding any other provision contained in this Agreement, the Parties acknowledge
and agree that no Director will be required to take any action that in such Director’s judgment would be inconsistent with such Director’s fiduciary duties under applicable law. 
 [Signature Page Follows] 
  

 12 

 IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each of the Parties as of the day
first above written. 
  

			
	Forest Holdings LLC
		
	By:	 	Crestview Partners, L.P., as Member
		
	By:	 	Crestview Partners GP, L.P., its General Partner
		
	By:	 	Crestview, L.L.C., its General Partner
		
	By:	 	 
		 	 Name:
 Title:

  

			
	Forest Holdings (ERISA) LLC
		
	By:	 	Crestview Partners (ERISA) L.P., as Member
		
	By:	 	Crestview Partners GP, L.P., its General Partner
		
	By:	 	Crestview, L.L.C., its General Partner
		
	By:	 	 
		 	 Name:
 Title:

  

			
	Friedman, Billings, Ramsey Group, Inc. (d/b/a Arlington Asset Investment Corp.)
		
	By:	 	 
		 	 Name:
 Title:

 Signature Page to Amended and Restated Voting Agreement 

			
	FBR TRS Holdings, Inc.
		
	By:	 	 
		 	 Name:
 Title:

  

			
	FBR Capital Markets Corporation
		
	By:	 	 
		 	 Name:
 Title:

 Signature Page to Amended and Restated Voting AgreementExhibit 10.3

 Exhibit 10.3 
 FORM OF TRANSITION SERVICES AGREEMENT 
 TRANSITION SERVICES AGREEMENT 
 THIS TRANSITION SERVICES AGREEMENT, as amended, modified and in effect from time to time (this “Agreement”), is made as of
May     , 2009, by and between FBR CAPITAL MARKETS CORPORATION, a Virginia corporation (“FBR Capital Markets”), and FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. (d/b/a ARLINGTON ASSET INVESTMENT CORP.), a
Virginia corporation (“FBR Group”). 
 RECITALS 
 WHEREAS, pursuant to that certain Stock Repurchase Agreement, dated as of May __, 2009, by and between FBR Capital Markets, FBR Group, and FBR TRS
Holdings, Inc. (the “Repurchase Agreement”), FBR Capital Markets has agreed to repurchase certain shares of capital stock of FBR Capital Markets that are currently held of record by FBR TRS Holdings, Inc.; 
 WHEREAS, pursuant to the terms of the Repurchase Agreement, the Parties have terminated that certain Services Agreement, dated as of July 20, 2006,
by and between FBR Capital Markets and FBR Group (the “Services Agreement”), which agreement provided for the provision of certain support services between the Parties; 
 WHEREAS, in connection with the entering into of the Repurchase Agreement and the termination of the Services Agreement, FBR Group has requested that FBR
Capital Markets, and FBR Capital Markets has agreed to, continue to provide certain support services on a transitional basis in connection with FBR Group’s operation of its own business following the consummation of the Repurchase Agreement,
all as more fully described herein; and 
 WHEREAS, in connection with the Repurchase Agreement, FBR Capital Markets desires to continue to
provide, and FBR Group desires to continue to obtain, such services on a transitional basis, all on the terms and subject to the conditions set forth in this Agreement. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, FBR Capital Markets and FBR Group, for themselves and their successors and assigns, hereby agree as
follows: 
 AGREEMENT 
 ARTICLE I 
 DEFINITIONS 
 Section 1.1 Definitions. As used in this Agreement, the following terms will have the following meanings, applicable both to the singular and the plural forms of the terms described: 
 “Action” shall mean any claim, action, suit, arbitration, inquiry or proceeding, whether civil, criminal, administrative, investigative
or appellate, in law or at equity, by or before any Governmental Entity. 
  

 “Affiliate” means, with respect to a given Person, any Person that directly or
indirectly controls, is controlled by, or is under common control with, such Person. For purposes of this definition, “Control” when used with respect to any Person means the possession, directly or indirectly, of the power to vote a
majority of the securities having voting power for the election of directors (or other Persons acting in similar capacities) of such Person or otherwise to direct the management and policies of such Person whether through the ownership of voting
securities, by contract or otherwise; and the terms “Controlling” and “Controlled” have meanings correlative to the foregoing. 
 “Confidential Information” shall have the meaning set forth in Section 8.1 hereof. 
 “Damages” shall have the meaning set forth in Section 10.2(a) hereof. 
 “Exhibit”
means Exhibit A hereto and incorporated by reference in this agreement, as amended, modified and in effect from time to time. 
 “Fees” shall have the meaning set forth in Section 3.1 hereof. 
 “FBR Group
Subsidiaries” mean the entities listed on Schedule 1 attached hereto, as may be amended, modified and in effect from time to time. 
 “Finally Determined” means, with respect to any Action, threatened Action or other matter, that the outcome or resolution of that Action, threatened Action or matter has either (i) been decided by an arbitrator or
Governmental Entity of competent jurisdiction by judgment, order, award or other ruling or (ii) has been settled or voluntarily dismissed and, in the case of each of clauses (i) and (ii), the claimants’ rights to maintain that Action,
threatened Action or other matter have been finally adjudicated, waived, discharged or extinguished, and that judgment, order, ruling, award, settlement or dismissal (whether mandatory or voluntary, but if voluntary that dismissal must be final,
binding and with prejudice as to all claims specifically pleaded in that Action) is subject to no further appeal, vacatur proceeding or discretionary review. 
 “Governmental Entity” means any government or any state, department or other political subdivision thereof, or any governmental body, agency, authority (including, but not limited to, any central bank
or taxing authority) or instrumentality (including, but not limited to, any court, tribunal or grand jury) exercising executive, prosecutorial, legislative, judicial, regulatory or administrative functions of or pertaining to government. 

“Indemnified Party” shall have the meaning set forth in Section 10.3 hereof. 
 “Indemnifying Party” shall have the meaning set forth in Section 10.3 hereof. 
 “Parties” mean FBR Group and FBR Capital Markets (“Party” means either FBR Group or FBR Capital Markets). 
 “Person” means any individual, partnership, limited liability company, joint venture, corporation, trust, unincorporated organization,
Government Entity (and any department or agency thereof) or other entity. 
  

 2 

 “Records” shall have the meaning set forth in Section 2.3 hereof.

 “Representative” shall have the meaning set forth in Section 4.1(a) hereof. 
 “Services” shall have the meaning set forth in Section 2.1(a) hereof, and “Service” means each such Service,
individually. 
 ARTICLE II 
 SERVICES TO BE PROVIDED 
 Section 2.1 Exhibit. 
 (a) Services. Exhibit A (Services) hereto is made a part of this Agreement and describes the services that FBR Capital Markets will provide
or cause to be provided to FBR Group (collectively, the “Services”) during the Term. The Parties have made a good faith effort as of the date hereof to identify each Service and to complete the content of the Exhibit accurately. It
is anticipated that the Parties may modify the Exhibit and the Services described therein from time to time during the Term. In that case, or to the extent that the Exhibit is incomplete, the Parties will cooperate diligently and in good faith to
modify the Exhibit. There are certain terms that are specifically addressed in the Exhibit. To the extent that the specific terms addressed in the Exhibit conflict with the terms provided in this Agreement, the specific terms addressed in the
Exhibit shall govern that Service. 
 (b) Extent of Services. The Parties acknowledge and agree that the Services described in the
Exhibit are not exhaustive and that the Parties may identify from time to time additional Services that they wish to include in the Exhibit and incorporate into this Agreement. The Parties will cooperate diligently and in good faith to identify such
Services and to modify the Exhibit or create additional exhibits setting forth the description of such Services, the Fees for such Services and any other applicable terms. 
 (c) Provision of Services. The Parties acknowledge and agree that FBR Capital Markets may provide or cause to be provided the Services that it is obligated to provide either through its own resources, the
resources of its respective subsidiaries or Affiliates, or by contracting with independent contractors as agreed hereunder. To the extent that FBR Capital Markets decides to provide a Service through an independent contractor that it is currently
providing through its own resources or the resources of its respective subsidiaries or Affiliates, it shall first consult with FBR Group and obtain the prior approval of FBR Group, which approval shall not be unreasonably withheld. 
 (d) Reduction in Services. The Parties agree that FBR Group shall be permitted during the Term of this Agreement to reduce the Services provided
hereunder, in whole or in part, provided that such reduction shall be accompanied by a corresponding and proportionate reduction in the Fees to be paid by FBR Group as to be determined diligently and in good faith by the Parties. 
 Section 2.2 Standard of Care. In providing the Services, FBR Capital Markets will exercise the same degree of care as it has historically
exercised in providing such Services prior to the date hereof, including at least the same level of quality, responsiveness and timeliness as has been exercised with respect to such Services or which FBR Capital Markets would use to provide such
Services for its own behalf. 
  

 3 

 Section 2.3 Records. FBR Capital Markets and FBR Group will keep full and detailed records dealing
with all aspects of the Services provided hereunder (the “Records”). Each Party shall provide access to the Records to the other Party at all reasonable times and shall maintain the Records in accordance with good record management
practices and with at least the same degree of completeness and care as it maintains for its other similar business interests. 
 ARTICLE
III 
 FEES 
 Section
3.1 General. FBR Group will pay to FBR Capital Markets the fixed dollar fee set forth in the Exhibit for the Services that FBR Capital Markets is obligated to provide or cause to be provided to FBR Group and the FBR Group Subsidiaries
(collectively, the “Fees”); provided, however, that such Fee shall not exceed the dollar amount paid by FBR Group to FBR Capital Markets for the provision of similar services under the Services Agreement for the first
quarter of 2009. The Fees constitute full compensation to FBR Capital Markets for all charges, costs and expenses incurred by FBR Capital Markets on behalf of FBR Group and the FBR Group Subsidiaries in providing the Services hereunder, unless
otherwise specifically provided in an Exhibit. Except as specifically provided herein or in an Exhibit, or as subsequently agreed by FBR Group, FBR Group will not be responsible to FBR Capital Markets or to any independent contractor retained by FBR
Capital Markets, for any additional fees, charges, costs or expenses relating to the Services to be provided by FBR Capital Markets, unless such additional fees, charges, costs or expenses are a direct result of FBR Group’s unilateral deviation
from the scope of the Services set forth in the Exhibit. 
 Section 3.2 Payments. FBR Capital Markets will deliver to FBR Group, no
later than the last day of the month following the end of each calendar quarter during the term of this Agreement, an invoice for the aggregate Fees payable by FBR Group for such calendar quarter. FBR Group will pay to FBR Capital Markets, by wire
transfer of immediately available funds or other mutually agreeable means, no later than the third Wednesday of the month following the month in which such invoice was delivered by FBR Capital Markets to FBR Group, the aggregate Fees incurred during
such calendar quarter. 
 ARTICLE IV 
 REPRESENTATIVES 
 Section 4.1 Representatives. 
 (a) The Chief Financial Officer of FBR Group and the Chief Financial Officer of FBR Capital Markets will serve as administrative representatives (each a
“Representative”) of FBR Group and FBR Capital Markets, respectively, to facilitate day-to-day communications and performance under this Agreement. Each Party may treat an act of a Representative of the other Party as being
authorized by such other Party. Each Party may replace its Representative by giving written notice of the replacement to the other Party. 
  

 4 

 (b) No additional exhibits, modifications to the Exhibit, or amendments to this Agreement shall be
effective unless and until executed by the Representative of each of FBR Group and FBR Capital Markets. 
 ARTICLE V 
 THIRD PARTY AGREEMENTS 
 To the extent
that it is not practicable to have FBR Group as the contracting party for a third party obligation, FBR Capital Markets, with respect to all Services provided by FBR Capital Markets or contracted for by FBR Capital Markets on behalf of FBR Group and
the FBR Group Subsidiaries, shall use commercially reasonable efforts to cause all such third party contracts to extend to and be enforceable by FBR Group or to assign such contracts to FBR Group. In the event that such contracts are not extendable
or assignable, subject to FBR Group’s approval, FBR Capital Markets shall act as agent for FBR Group in the pursuit of any claims, issues, demands or actions against such third party provider at FBR Group’s expense. 
 ARTICLE VI 
 AUTHORITY; INFORMATION;
COOPERATION; CONSENTS 
 Section 6.1 Authority. Each Party represents and warrants to the other Party that: 
 (a) it has the requisite corporate authority to enter into and perform this Agreement; 
 (b) its execution, delivery, and performance of this Agreement have been duly authorized by all requisite corporate action on its behalf; 
 (c) this Agreement is enforceable against it in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization or similar
laws affecting creditors’ rights generally and by general principles of equity; and 
 (d) it has obtained all consents or approvals of
Governmental Entities and other Persons that are conditions to its entering into this Agreement. 
 Section 6.2 Information Regarding
Services. Each Party shall make available to the other Party any information required or reasonably requested by the other Party regarding the performance of any Service and shall be responsible for timely providing that information and for the
accuracy and completeness of that information; provided, however, that a Party shall not be liable for failing to provide any information that is subject to a confidentiality obligation owed by it to a Person other than an Affiliate of
such Party. FBR Capital Markets shall not be liable for any impairment of any Service caused by FBR Capital Markets not receiving information, either timely or at all, or by its receiving inaccurate or incomplete information from FBR Group that is
required or reasonably requested regarding that Service. 
 Section 6.3 Cooperation. The Parties will use good faith efforts to
cooperate with each other in all matters relating to the provision, receipt and payment of Services. Such good faith cooperation will include providing electronic access to systems used in connection with Services and using commercially reasonable
efforts to obtain all consents, licenses, sublicenses or approvals necessary to permit each Party to perform its obligations. The Parties will cooperate 

  

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with each other in making such information available as needed in the event of any and all internal or external audits, whether in the United States or any
other country. The Parties will diligently and in good faith cooperate with each other and with applicable vendors using commercially reasonable efforts in order to effect a timely and efficient transition and to minimize the disruption to the
business of both Parties, including the assignment or transfer of the rights and obligations under any contracts. 
 Section 6.4 Further
Assurances. Each Party shall take such actions, upon request of the other Party and in addition to the actions specified in this Agreement, as may be necessary or reasonably appropriate to implement or give effect to this Agreement. 

ARTICLE VII 
 AUTHORITY AS AGENT

 FBR Capital Markets and FBR Capital Markets’ Affiliates are hereby authorized to act as agent for FBR Group and the FBR Group
Subsidiaries for the purpose of performing Services hereunder as necessary or desirable to perform such Services. FBR Group will execute and deliver to FBR Capital Markets any document or other evidence which may be reasonably required to
demonstrate to third parties the authority as described in this Article VII. 
 ARTICLE VIII 
 CONFIDENTIAL INFORMATION 
 Section 8.1
Definition. For the purposes of this Agreement, “Confidential Information” means non-public information about the disclosing Party’s or any of its Affiliates’ business or activities that is proprietary and
confidential, which shall include, without limitation, all business, financial, technical and other information, including software (source and object code) and programming code, of a Party or its Affiliates marked or designated
“confidential” or “proprietary” or by its nature or the circumstances surrounding its disclosure should reasonably be regarded as confidential. Confidential Information includes not only written or other tangible information, but
also information transferred orally, visually, electronically or by any other means. Confidential Information will not include information that (i) is in or enters the public domain without breach of this Agreement, or (ii) the receiving
Party lawfully receives from a third party without restriction on disclosure and to the receiving Party’s knowledge without breach of a nondisclosure obligation. 
 Section 8.2 Nondisclosure. Each of FBR Group and FBR Capital Markets agree that (i) it will not disclose or cause to be disclosed to any third party or use or cause to be used any Confidential Information
disclosed to it by the other except as expressly permitted in this Agreement, and (ii) it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control, which
will in no event be less than the measures it uses to maintain the confidentiality of its own information of similar type and importance. 
 Section 8.3 Permitted Disclosure. Notwithstanding the foregoing, each Party may disclose Confidential Information (i) to the extent required by a court of competent jurisdiction or other Governmental Entity or otherwise as
required by law, including without limitation 

  

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disclosure obligations imposed under the federal securities laws, and as advised by counsel, provided that such Party has given the other Party prior notice
of such requirement when legally permissible to permit the other Party to take such legal action to prevent the disclosure as it deems reasonable, appropriate or necessary, or (ii) on a “need-to-know” basis under an obligation of
confidentiality to its consultants, legal counsel, Affiliates, accountants, banks and other financing sources and their advisors, whom such Party shall cause to treat any Confidential Information in a confidential manner. 
 Section 8.4 Ownership of Confidential Information. All Confidential Information supplied or developed by either Party shall be and remain the sole
and exclusive property of the Party who supplied or developed it. 
 ARTICLE IX 
 TERM AND TERMINATION 
 Section 9.1 Term. This Agreement shall commence on
the date hereof and FBR Group shall use all commercially reasonable efforts to discontinue the use of the Services and develop its own capacity to provide the Services to itself as soon as reasonably practicable and in any event no later than the
date that is three hundred sixty-five (365) days after the date hereof. For the avoidance of doubt, unless earlier terminated as provided in Section 9.2, this Agreement shall terminate on the earlier of (x) the date that FBR
Group commences providing all of the Services to itself, and (y) the date that is 365 days after the date hereof (the “Term”). 
 Section 9.2 Termination. This Agreement may be terminated prior to the expiration of the Term in accordance with the following: 
 (a) upon the mutual written agreement of the Parties; 
 (b) by either Party if the other Party commits any
material breach of this Agreement and such failure is not cured within thirty (30) days from the breaching Party’s receipt of written notice specifying the breach from the non-breaching Party; 
 (c) by Group upon written notice to FBR Capital Markets with respect to any Service or all Services; or 
 (d) immediately upon written notice to FBR Group if FBR Group sells all or substantially all of its capital stock or assets to a non-Affiliate regardless
of the form of transaction; provided, however, in the event FBR Group enters into such a transaction, FBR Capital Markets agrees that it shall upon the reasonable request from FBR Group continue to provide the Services to FBR Group for
a period to be mutually agreed thereafter, but in no event beyond the expiration of the Term; and provided, further, that any Services provided by CMC in accordance with this Section 9.2(d) shall be consistent with, and no
more onerous than, the Services contemplated hereby. 
 Section 9.3 Survival. The obligations of Article III (with respect to
Services rendered up through the date of expiration or termination), Section 9.3, Article VIII, Article X, Article XI, and Article XII shall survive the Term of this Agreement. 
  

 7 

 ARTICLE X 
 LIMITATION OF LIABILITY; INDEMNIFICATION 
 Section 10.1 Limitation of Liability. FBR Group,
the FBR Group Subsidiaries, their controlling persons, if any, directors, officers, employees, agents and permitted assigns (each, an “FBR Group Party”) shall not be liable to FBR Capital Markets, its Affiliates and subsidiaries,
and their respective directors, officers, employees, agents or permitted assigns (each, an “FBR Capital Markets Party”), and each FBR Capital Markets Party shall not be liable to any FBR Group Party, in each case, for any
liabilities, claims, damages, losses or expenses, including, but not limited to, any special, indirect, incidental or consequential damages (collectively, “Liabilities”), of a FBR Capital Markets Party or a FBR Group Party arising
in connection with this Agreement and the Services provided hereunder, except for any Liabilities caused by or arising in connection with breaches of Section 2.2 or the gross negligence or willful misconduct of any FBR Group Party or any
FBR Capital Markets Party and except as may be provided in Section 10.2 below. 
 Section 10.2 Indemnification.

 (a) FBR Group shall indemnify, defend and hold harmless each FBR Capital Markets Party from and against all liabilities, claims, damages,
losses and expenses (including, but not limited to, court costs and reasonable attorneys’ fees) (collectively referred to as “Damages”) of any kind or nature, of third parties unrelated to any FBR Capital Markets Party caused
by or arising in connection with the gross negligence or willful misconduct of any employee of FBR Group or any FBR Group Subsidiary in connection with the performance of the Services, except to the extent that Damages were caused directly or
indirectly by acts or omissions of any FBR Capital Markets Party. Notwithstanding the foregoing, FBR Group shall not be liable for any special, indirect, incidental, or consequential damages relating to such third party claims. 
 (b) FBR Capital Markets shall indemnify, defend and hold harmless each FBR Group Party from and against all Damages of any kind or nature, of third
parties unrelated to any FBR Group Party caused by or arising in connection with the gross negligence or willful misconduct of any employee of FBR Capital Markets in connection with the performance of Services under this Agreement, except to the
extent that Damages were caused directly or indirectly by acts or omissions of any FBR Group Party. Notwithstanding the foregoing, FBR Capital Markets shall not be liable for any special, indirect, incidental, or consequential damages relating to
such third party claims. 
 Section 10.3 Indemnification Procedures. If any FBR Group Party or FBR Capital Markets Party (the
“Indemnified Party”) determines that it is or may be entitled to indemnification by any party (the “Indemnifying Party”) under Section 10.2 of this Agreement, the Indemnified Party shall deliver to the
Indemnifying Party a written notice specifying, to the extent reasonably practicable, the basis for its claim for indemnification and the amount for which the Indemnified Party reasonably believes it is entitled to be indemnified. Within 30 days
after receipt of that notice, the Indemnifying Party shall pay the Indemnified Party that amount in cash or other immediately available funds unless the Indemnifying Party objects to the claim for indemnification or the amount of the claim. If the
Indemnifying Party does not give the Indemnified Party written notice objecting to that indemnity claim and setting forth the grounds 

  

 8 

 
for the objection(s) within that 30-day period, the Indemnifying Party shall be deemed to have acknowledged its liability for that claim and the Indemnified
Party may exercise any and all of its rights under applicable law to collect that amount. If there is a timely objection by the Indemnifying Party, the Indemnifying Party shall pay to the Indemnified Party in cash the amount, if any, that is Finally
Determined to be required to be paid by the Indemnifying Party in respect of that indemnity claim within 15 days after that indemnity claim has been so Finally Determined. 
 ARTICLE XI 
 DISPUTE RESOLUTION 
 If the Parties are unable to resolve any Service, performance or budget issues or if there is a material breach of this Agreement that has not been
corrected within 30 days of receipt of notice of such breach, the Representative of FBR Capital Markets and the Representative of FBR Group will meet promptly to review and resolve those issues in good faith. 
 ARTICLE XII 
 MISCELLANEOUS

 Section 12.1 Governing Law. This Agreement and performance hereunder will be governed by and construed in accordance with the
laws of the Commonwealth of Virginia without regard to the principles of conflict of laws. The Parties agree, for the purposes of any Action arising out of or relating to this Agreement, to commence any such Action solely in the state or federal
courts located in the Commonwealth of Virginia. 
 Section 12.2 Assignment. This Agreement is not assignable in whole or in part by
either Party without the prior written consent of the other; provided that either Party may assign this Agreement in whole or in part to a parent, a direct or indirect wholly-owned subsidiary. 
 Section 12.3 Entire Agreement. This Agreement, including the attached Exhibit and Schedule, is the complete and exclusive statement of the
agreement between the Parties relating to the subject matter of this Agreement and supersedes all prior proposals, understandings and all other agreements, oral and written, between the Parties relating to the subject matter of this Agreement. This
Agreement may not be modified or altered except by written instrument duly executed by both Parties. 
 Section 12.4 Waivers. The
failure of a Party to assert any of its rights hereunder shall not constitute a waiver of such rights nor in any way affect the validity of this Agreement or any part hereof or the right of such Party thereafter to enforce each and every provision
of this Agreement. No waiver of any breach of or noncompliance with this Agreement shall be held to be a waiver of any other or subsequent breach or noncompliance. 
 Section 12.5 Disclaimer of Warranties. EXCEPT AS EXPRESSLY SET FORTH HEREIN, EACH PARTY DISCLAIMS ALL REPRESENTATIONS, WARRANTIES, COVENANTS AND CONDITIONS, WHETHER EXPRESS, IMPLIED OR STATUTORY WITH RESPECT TO
THE SERVICES, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY, AND FITNESS FOR A PARTICULAR PURPOSE. 
  

 9 

 Section 12.6 Force Majeure. Any delay or failure by either Party in the performance of this
Agreement will be excused to the extent that the delay or failure is due solely to causes or contingencies beyond the reasonable control of such Party. 
 Section 12.7 Severability. Wherever possible, each provision hereof shall be interpreted in such a manner as to be effective and valid under applicable law. In case any one or more of the provisions contained
herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such provision or provisions shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the
remainder of the provisions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereunder are not affected in
any manner materially adverse to any Party. Upon such a determination, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a reasonably acceptable manner so
that the transactions contemplated hereunder may be consummated as originally contemplated to the fullest extent possible. 
 Section 12.8
Notices. All communications, notices and disclosures required or permitted by this Agreement shall be in writing and shall be deemed to have been given one day after being delivered personally or by messenger or being received via telecopy,
telex or other electronic transmission, or two days after being sent by overnight delivery service, in all cases addressed to the person for whom it is intended at the addresses as follows: 
 If to FBR Group: 
 Friedman, Billings, Ramsey
Group, Inc. 
 1001 North Nineteenth Street 
 Arlington, VA 22209 
 Facsimile: (703) 469-1012 
 Attention: Chief Financial Officer 
 If to FBR
Capital Markets: 
 FBR Capital Markets Corporation 
 1001 North Nineteenth Street 
 Arlington, VA 22209 
 Facsimile: (703) 469-1140 
 Attention:
Chief Legal Officer 
 Or to such other address as a Party shall have designated by notice in writing to the other Party in the manner provided by this
Section 12.8. 
 Section 12.9 Counterparts; Headings. This Agreement may be executed in several counterparts (which may be
exchanged by means of electronic transmission), and each counterpart shall be deemed to be an original, but all of which together shall constitute one and the same instrument. The Article and Section headings in this Agreement are inserted for
convenience of reference only and shall not constitute a part hereof. 
  

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 Section 12.10 Waiver of Trial By Jury. FBR CAPITAL MARKETS AND FBR GROUP EACH HEREBY AGREES NOT TO
ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER MAY EXIST WITH REGARD TO THIS AGREEMENT OR ANY DOCUMENT RELATED THERETO, OR ANY CLAIM,
COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY FBR CAPITAL MARKETS AND FBR GROUP, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO
WHICH A RIGHT TO TRIAL BY JURY WOULD OTHERWISE ACCRUE. FBR CAPITAL MARKETS AND FBR GROUP EACH IS HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION 12.10 IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY EACH OTHER. 
 [Signature Page Follows] 
  

 11 

 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date first set forth above.

  

			
	 FRIEDMAN, BILLINGS RAMSEY GROUP,
 INC. (d/b/a
ARLINGTON ASSET
 INVESTMENT CORP.)

		
	By:	 	 
		 	Name:
		 	Title:
	
	FBR CAPITAL MARKETS CORPORATION
		
	By:	 	 
		 	Name:
		 	Title:

  
 Signature Page to
Transition Services Agreement

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