Document:

Exhibit 4.4

 Exhibit 4.4 
  

 GOVERNANCE AGREEMENT 
 by and among 
 FRIEDMAN, BILLINGS, RAMSEY GROUP, INC., 
 FBR TRS HOLDINGS, INC., 
 FOREST
HOLDINGS (ERISA) LLC, 
 and 
 FOREST HOLDINGS LLC 
 dated as of 
 July 20, 2006 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE 1
	
	DEFINITIONS
			
	 Section 1.1
	  	Definitions	  	1
	
	ARTICLE 2
	
	TRANSFER RESTRICTIONS
			
	 Section 2.1
	  	No Transfer in First Year	  	2
	 Section 2.2
	  	Certain Permitted Transfers	  	2
	 Section 2.3
	  	Right of First Offer and Right of First Refusal	  	3
	 Section 2.4
	  	Tag-Along Sale Right	  	5
	
	ARTICLE 3
	
	DISCLOSURE OBLIGATIONS
			
	 Section 3.1
	  	Disclosure Obligations	  	6
	
	ARTICLE 4
	
	REPRESENTATIONS AND WARRANTIES
			
	 Section 4.1
	  	Representations and Warranties	  	6
	
	ARTICLE 5
	
	MISCELLANEOUS
			
	 Section 5.1
	  	Term	  	7
	 Section 5.2
	  	Counterparts	  	7
	 Section 5.3
	  	Governing Law	  	7
	 Section 5.4
	  	Entire Agreement	  	7
	 Section 5.5
	  	Specific Performance	  	7
	 Section 5.6
	  	Notices	  	7
	 Section 5.7
	  	Assignment	  	8
	 Section 5.8
	  	Headings	  	9
	 Section 5.9
	  	Amendments and Waivers	  	9
	 Section 5.10
	  	Interpretation; Absence of Presumption	  	9
	 Section 5.11
	  	Severability	  	9
	 Section 5.12
	  	Jurisdiction	  	9
	 Section 5.13
	  	Waiver of Jury Trial	  	10

					
	 	  	 	  	Page
	 Section 5.14
	  	Further Assurances	  	10
	 Section 5.15.
	  	Recapitalization, Etc	  	10
	 Section 5.16.
	  	FBR Group Guarantee	  	10

  

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 THIS GOVERNANCE AGREEMENT (the “Agreement“), dated as of July 20, 2006, relating to
FBR Capital Markets Corporation (“FBR” or the “Company”) is made by and among Friedman, Billings, Ramsey Group, Inc., a Virginia corporation, (“FBR Group“), FBR TRS Holdings, Inc., a Virginia
corporation, (“FBR TRS“), 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, “Purchaser”). 
 RECITALS: 
 WHEREAS, FBR Group, FBR TRS, FBR and Purchaser 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 Purchaser would acquire common shares (“Shares“) of the Company in connection with the 144A private placement of Shares, and be granted options to buy 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 Purchaser entered into an Investment Agreement, dated as of July 19, 2006 (the “Investment Agreement“) setting
forth the terms and conditions pursuant to which Purchaser is acquiring the Shares from the Company and is being granted the Options; 
 WHEREAS, following consummation of the transactions contemplated by the Investment Agreement, Purchaser will own a significant percentage of the equity interests in the Company; and 
 WHEREAS, the parties hereto desire to enter into this Agreement to provide for certain rights and obligations of the parties hereto. 
 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 hereto agree as follows: 
 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: 
 “First Offer Price” shall have the meaning specified in Section 2.3(a). 
 “Original Shares“ shall mean the Shares acquired by Purchaser with the Purchase Price and the Additional Purchase Price, if any
(including Shares issued in respect of, in exchange for or in substitution of such Shares by reason of any Reorganization). 
  

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 “Reorganization“ shall mean any reorganization, recapitalization, stock dividend, stock
split or any similar change in the capital structure of the Company. 
 “Restricted Entity“ shall mean an entity set forth
on Annex A hereto (including all Subsidiaries of such entity). 
 “ROFO Notice” shall have the meaning specified in
Section 2.3(a). 
 “ROFR Notice” shall have the meaning specified in Section 2.3(b). 
 “ROFR Price” shall have the meaning specified in Section 2.3(b). 
 “Rule 144” shall mean Rule 144 promulgated under the Securities Act, or any similar federal rules thereunder, all as the same shall be
in effect at the time. 
 “Securities Act” shall mean the Securities Act of 1933, as amended, or any similar federal rule or
statute and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time. 
 “Tag-Along
Notice” shall have the meaning specified in Section 2.4. 
 “Transfer” shall mean directly or indirectly, to
sell, transfer, assign, pledge, encumber, hypothecate or similarly dispose of (by operation of law or otherwise), either voluntarily or involuntarily, or to enter into any contract, option or other arrangement or understanding with respect to the
sale, transfer, assignment, pledge, encumbrance, hypothecation or similar disposition of (by operation of law or otherwise), any Shares or any interest in any Shares. 
 “Transferring Party” shall have the meaning specified in Section 2.3(a). 
 ARTICLE 2

 TRANSFER RESTRICTIONS 
 Section 2.1 No Transfer in First Year. No party hereto will Transfer any Shares prior to the one-year anniversary of the Closing Date (provided that, for avoidance of doubt, this shall not restrict a merger or other
business combination involving the Company). Thereafter, Shares may be Transferred only in compliance with the remainder of this Article 2. 
 Section 2.2 Certain Permitted Transfers. After the one-year anniversary of the Closing Date, the parties hereto may Transfer Shares in accordance with this Article 2 and in compliance with the United States federal securities
laws and all applicable state securities or “blue sky” laws; provided that the requirements of Section 2.3 shall not apply to Transfers of Shares (i) in a public offering, (ii) pursuant to Rule 144 (except in a
privately negotiated transaction in which the counterparty is known), (iii) to controlled Affiliates of Crestview, L.L.C. who enter into an agreement reasonably satisfactory to FBR TRS to be bound by the terms of this Agreement to the same
extent as the transferor is so bound or (iv) to the equityholders of such transferor pursuant to a distribution that is made pro rata to such equityholders in accordance with the respective partnership or limited liability company agreement of
such transferor without 
  

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 payment of additional consideration therefor by such equityholders (it being understood that such equityholders will not
be bound by the provisions of this Agreement). No Transfer of Shares in violation of this Agreement shall be recorded on the books of the Company, and any such attempted Transfer shall be void ab initio and of no effect. 
 Section 2.3 Right of First Offer and Right of First Refusal. (a) Right of First Offer. After the one-year anniversary of the
Closing Date, subject to the proviso in Section 2.2, prior to Transferring any Shares, Purchaser and or its Affiliates proposing to effect such Transfer (the “Transferring Party”) shall give FBR TRS a right of first offer to
purchase such Shares as described in this paragraph (a): 
 (i) The Transferring Party shall give written notice (a “ROFO
Notice”), to FBR TRS stating such Transferring Party’s intention to effect a Transfer, the number of Shares subject to such proposed Transfer, the price (including the form of consideration) at which, and any other terms the
Transferring Party wishes to specify on which, such Transferring Party proposes to offer such Shares for Transfer (the “First Offer Price”). 
 (ii) Upon receipt of the ROFO Notice, FBR TRS (or an Affiliate designated by it in accordance with Section 5.7) may make an irrevocable election, by giving written notice within ten (10) Business Days from
receipt of the ROFO Notice, to purchase all, but not less than all, of the Shares subject to such ROFO Notice at the First Offer Price and otherwise on terms and conditions substantially similar to the terms and conditions described in the ROFO
Notice. If FBR TRS (or any such Affiliate) fails to so notify the Transferring Party within such ten (10) Business Day period, FBR TRS (and its Affiliates) shall be deemed to have irrevocably waived their right to elect to purchase such Shares
(unless such Shares are not Transferred and the last sentence of clause (iv) below is applicable). 
 (iii) If FBR TRS (or such
Affiliate) elects to purchase all of such Shares, FBR TRS (or such Affiliate) and the Transferring Party shall use their commercially reasonable efforts to consummate such transaction as promptly as practicable (but in no event more than fourteen
(14) days after the delivery of such election notice, provided that, if the Transfer is subject to regulatory approval, and if definitive documentation with respect to such purchase has been executed within fourteen (14) days, such
fourteen (14) day period will be extended until the expiration of five (5) Business Days after all such approvals will have been received, but in no event will such period be extended for more than an additional ninety (90) days).

 (iv) If FBR TRS or an Affiliate does not elect to purchase all of such Shares pursuant to this paragraph (a) or if, having made such
election, FBR TRS or an Affiliate does not complete such purchase within the applicable time period specified in paragraph (iii), then the Transferring Party shall be free for a period of 120 days from the date that is ten (10) Business Days
following receipt of the ROFO Notice (provided that, if the Transfer is subject to regulatory approval, such 120-day period will be extended until the expiration of five (5) Business Days after all such approvals will have been received,
but in no event will such period be extended for more than an additional 120 days) to Transfer such Shares to a transferee for consideration having a value not less than the First Offer Price; provided that any such definitive agreement is on
terms in the aggregate no less favorable to the Transferring Party than contained in the ROFO Notice. Subject to any confidentiality obligations of the Transferring Party, the 
  

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 Transferring Party shall provide FBR TRS a substantially final draft of such definitive agreement (or, if the
Transferring Party is prohibited from providing such draft, a summary of the material terms and conditions thereof) at least two (2) Business Days prior to entering into such agreement and in any event prior to such Transfer. In the event that
the Transferring Party has not entered into such a definitive agreement with the period referred to in the preceding sentence, or has so entered into such an agreement but has not consummated the sale of such Shares within nine months from the date
of such definitive agreement, then the provisions of this paragraph (a) shall again apply, and such Transferring Party shall not Transfer or offer to Transfer such Shares without again complying with this paragraph (a), to the extent
applicable. 
 (v) Notwithstanding anything herein to the contrary, the provisions of this Section 2.3(a) will not apply to any Transfer
of Shares (i) that is subject to Section 2.3(b) or (ii) that is referred to in the proviso to Section 2.2. 
 (b)
Right of First Refusal. In addition to compliance with Section 2.3(a), after the one-year anniversary of the Closing Date, prior to Transferring any Shares to any Restricted Entity for the account of such Restricted Entity as principal
in a privately negotiated transaction (that is, in which the counterparty is known to be a Restricted Entity), the Transferring Party shall give FBR TRS a right of first refusal to purchase such Shares as described in this paragraph (b): 

(i) The Transferring Party shall give written notice (a “ROFR Notice”), to FBR TRS stating such Transferring Party’s intention to
enter into a definitive agreement with a Restricted Entity to effect a Transfer, the number of Shares subject to such Transfer, the price (including the form of consideration) at which such Transferring Party proposes to Transfer such Shares (the
“ROFR Price”), the identity of the proposed transferee and any other material terms upon which such Transfer is proposed to be made. 
 (ii) Upon receipt of the ROFR Notice, FBR TRS (or an Affiliate designated by it in accordance with Section 5.7) will have an irrevocable option to purchase all, but not less than all, of the Shares subject to
such ROFR Notice at the ROFR Price and otherwise on terms and conditions substantially similar to the terms and conditions described in the ROFR Notice. FBR TRS or such Affiliate shall, within ten (10) Business Days from receipt of the ROFR
Notice, indicate if it accepts such offer by sending written notice of such acceptance to the Transferring Party. If FBR TRS (or any such Affiliate) fails to so notify the Transferring Party within such ten (10) Business Day period, FBR TRS
(and its Affiliates) shall be deemed to have irrevocably waived their right to elect to purchase such Shares (unless such Shares are not Transferred and the last sentence of clause (iv) below is applicable). 
 (iii) If FBR TRS or such Affiliate elects to purchase all of such Shares, FBR TRS or such Affiliate and the Transferring Party shall use their
commercially reasonable efforts to consummate such transaction as promptly as practicable (but in any event within five (5) Business Days following the delivery of such election notice provided that, if the Transfer is subject to
regulatory approval, such five (5) Business Day period will be extended until the expiration of five (5) Business Days after all such approvals will have been received, but in no event will such period be extended for more than an
additional ninety (90) days). 
  

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 (iv) If FBR TRS or an Affiliate does not elect to purchase all of such Shares pursuant to this paragraph
(b) (or if, having made such election, FBR TRS or an Affiliate does not complete such purchase within the applicable time period specified in paragraph (iii)), then the Transferring Party shall be free for a period of fifteen (15) Business
Days following receipt of the ROFR Notice to enter into a definitive agreement with such Restricted Entity for consideration having a value not less than the ROFR Price; provided that any such definitive agreement provides for the
consummation of such Transfer on terms no less favorable to Purchaser in the aggregate than were contained in the ROFR Notice. Subject to any confidentiality obligations of the Transferring Party, the Transferring Party shall provide FBR TRS a
substantially final draft of such definitive agreement (or, if the Transferring Party is prohibited from providing such draft, a summary of the material terms and conditions thereof) at least two (2) Business Days prior to entering into such
agreement and in any event prior to such Transfer. In the event that the Transferring Party has not entered into such a definitive agreement within such fifteen (15) Business Day period, or has so entered into such an agreement but has not
consummated the sale of such Shares within nine months from the date of such definitive agreement, then the provisions of this paragraph (b) shall again apply, and such Transferring Party shall not Transfer or offer to Transfer such Shares not
so Transferred without again complying with this paragraph (b), to the extent applicable. 
 (v) Notwithstanding anything herein to the
contrary, the provisions of this Section 2.3(b) shall not apply to any Transfer (i) that is subject to Section 2.4 or (ii) that is referred to in the proviso to Section 2.2. 
 Section 2.4 Tag-Along Sale Right. (a) If after the one-year anniversary of the Closing Date, FRB TRS proposes to Transfer Shares
constituting 7 1/2% or more of the then-outstanding Shares (other than (i) in a public offering,
(ii) pursuant to Rule 144 (except in a privately negotiated transaction in which the counterparty is known) or (iii) to one or more controlled Affiliates of FBR Group who enter into an agreement reasonably satisfactory to Purchaser to be
bound by the terms of this Agreement to the same extent as FBR TRS is then bound), then FBR TRS shall give written notice of such proposed Transfer to Purchaser (the “Tag-Along Notice”) at least ten (10) Business Days prior to
the consummation of such proposed Transfer, setting forth the number of Shares subject to such Transfer, the price (including the form of consideration) at which such FBR TRS proposes to Transfer such Shares, the identity of the transferee, the date
of the proposed Transfer and any other material terms upon which such Transfer is proposed to be made. If the consideration payable consists in part or in whole of consideration other than cash, FBR TRS shall provide Purchaser with such information
relating to such consideration as Purchaser reasonably requests as being necessary to evaluate such non-cash consideration, it being understood that such request will not obligate FBR TRS to deliver any information not in the possession of FBR TRS.

 (b) Upon delivery of the Tag-Along Notice, Purchaser may elect, by giving an irrevocable written notice to FBR TRS within ten
(10) Business Days of the date of the Tag-Along Notice, to sell a pro rata portion of its Shares (so that the proportion of its Shares sold and the proportion of FRB TRS’s Shares sold in any transaction subject to this Section 2.4
will be equal), at the same price per Share and on the same terms and conditions as agreed to by FBR TRS (provided that if such transaction is not consummated for any reason, then Purchaser shall retain such Shares). If Purchaser shall not have
delivered such notice within such ten (10) Business 
  

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 Day period, Purchaser shall be deemed to have irrevocably waived its rights set forth in this Section 2.4 with
respect to such transaction, and FBR TRS may sell the Shares that were the subject of the Tag-Along Notice. In the event that FBR TRS has not entered into a definitive agreement with respect to the transaction described in the Tag-Along Notice
within thirty (30) Business Days of the date of the Tag-Along Notice, or has entered into such an agreement but has not consummated the sale of such Shares within nine months from the date of such definitive agreement, then the provisions of
this Section 2.4 shall again apply, and FBR TRS shall not Transfer or offer to Transfer such Shares not so Transferred without again complying with this Section 2.4, to the extent applicable. 
 (c) Concurrently with the consummation of any Transfer in connection with which Purchaser has made an election pursuant to Section 2.4(b), FBR TRS
will (i) notify Purchaser thereof, (ii) to the extent consideration is not remitted directly to Purchaser, remit to Purchaser the total consideration for the Shares that Purchaser Transferred pursuant thereto concurrently with FBR
TRS’ receipt of such consideration and (iii) promptly after the consummation of such Transfer, furnish such other evidence of the completion and the date of completion of such Transfer and the terms thereof as may be reasonably requested
by Purchaser. 
 ARTICLE 3 
 DISCLOSURE OBLIGATIONS 
 Section 3.1 Disclosure Obligations. The parties hereto shall have reasonable rights to review
in advance and comment on all public disclosure relating to this Agreement. In addition, Section 5.02 of the Investment Agreement is hereby incorporated by reference herein and made a part hereof, mutatis mutandis.  
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES

 Section 4.1 Representations and Warranties. Each of FBR Group and FBR TRS, on the one hand, and Crestview ERISA and Crestview
LLC, on the other hand, represents and warrants to the other that: 
 (a) it is an entity duly organized and validly existing
and in good standing under the laws of the 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

  

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 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 at such time as Purchaser and its Affiliates who have
become parties to this Agreement cease to own at least one percent (1%) of the Original Shares. 
 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 hereto and delivered to each
other party hereto. Copies of executed counterparts transmitted by telecopy, telefax or other electronic transmission service shall be considered original executed counterparts for purposes of this Section, 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 STATE OF NEW YORK 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 hereto with respect to the subject matter hereof and there are no agreements, understandings,
representations or warranties between the parties hereto 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 hereto 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 hereto will have no adequate remedy at law or in equity. Accordingly, each party hereto 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 hereto 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, 
  

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 in each case to the applicable addresses set forth below. Notices to FBR Group and FBR TRS shall be addressed to such
party in care of: 
 Friedman, Billings, Ramsey Group, Inc. 
 1001 Nineteenth Street North 
 Arlington, VA 22209 
 Attention: William J. Ginivan, Esq. 
 Telecopy Number: (703) 469-1140 
 with a copy to: 
 Wachtell, Lipton, Rosen & Katz 
 51 West 52nd Street, 30th Floor 
 New York, NY 10019-6150 
 Attention: Trevor S. Norwitz, Esq. 
 Telecopy Number: (212) 403-2333 
 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 Purchaser. Notices to Purchaser shall be
addressed to: 
 Forest Holdings LLC 
 Forest Holdings (ERISA) LLC 
 c/o Crestview Capital Partners, L.P. 
 667 Madison Avenue 
 New York, NY 10021 
 Attention: Jacob Capps 
 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 Purchaser may designate by written notice to FBR Group and FBR TRS. 
 Section 5.7 Assignment. 
 (a)
Assignment. Subject to the immediately following sentence, the rights of the parties specified herein are personal to the parties and will not pass to any acquiror of such party’s Shares. If any party hereto (or any of their respective
permitted assignees) transfers Shares to any of their Affiliates (which 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 hereto. 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 hereto. 

 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 hereto. Any party hereto may, only by an instrument in writing, waive compliance by the other
parties hereto with any term or provision hereof on the part of such other parties hereto to be performed or complied with. The waiver by any party hereto 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 
  

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 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 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 hereto 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. Each party shall take all actions necessary to ensure that the Articles of
Incorporation and Bylaws of the Company and each of its Subsidiaries facilitate and do not at any time conflict with any provision of this Agreement. 
 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 hereto under this Agreement.

 Section 5.16. FBR Group Guarantee. FBR Group hereby guarantees to the Purchaser 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
(collectively, the “FBR TRS Obligations”), in accordance with the terms hereof. FBR Group acknowledges and agrees that, with respect to all the FBR TRS Obligations to pay money, such guaranty shall be a guaranty of payment and
performance and not of collection and shall not be conditioned or contingent upon the pursuit of any remedies against FBR TRS. The liabilities and obligations of FBR Group pursuant to this Section are unconditional and absolute and, without limiting
the generality of the foregoing, shall not be released, discharged or otherwise affected by any act, omission to act, delay of any kind by any party hereto or any other Person, or any other circumstance whatsoever that might, but for the provisions
of this Section, constitute a legal or equitable discharge of the obligations of FBR Group hereunder. 
  

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

					
	Forest Holdings LLC
		
	By:	 	Crestview Capital Partners, L.P., as Member
		
	By:	 	Crestview Partners, L.P., its General Partner
		
	By:	 	Crestview, L.L.C., its General Partner
		
	By:	 	 /s/ Thomas S. Murphy, Jr.

	Name:	 	Thomas S. Murphy, Jr.
	Title:	 	President
	
	Forest Holdings (ERISA) LLC
		
	By:	 	Crestview Capital Partners (ERISA), L.P., as Member
			
	By:	 		 	Crestview Partners, L.P., its General Partner
			
	By:	 		 	Crestview, L.L.C., its General Partner
		
	By:	 	 /s/ Thomas S. Murphy, Jr.

	Name:	 	Thomas S. Murphy, Jr.
	Title:	 	President
	
	Friedman Billings Ramsey Group, Inc.
		
	By:	 	 /s/ William J. Ginivan

	Name:	 	William J. Ginivan
	Title:	 	SVP and Chief Legal Officer
	
	FBR TRS Holdings, Inc.
		
	By:	 	 /s/ William J. Ginivan

	Name:	 	William J. Ginivan
	Title:	 	General Counsel

 [SIGNATURE PAGE TO GOVERNANCE AGREEMENT]Exhibit 4.5

 Exhibit 4.5 
  

 VOTING AGREEMENT 
 by and among 
 FRIEDMAN, BILLINGS, RAMSEY GROUP, INC., 
 FBR TRS HOLDINGS, INC., 
 FBR CAPITAL
MARKETS CORPORATION, 
 FOREST HOLDINGS (ERISA) LLC, 
 and 
 FOREST HOLDINGS LLC 
 dated as of 
 July 20, 2006 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE 1
	
	DEFINITIONS
			
	Section 1.1	  	Definitions	  	1
	
	ARTICLE 2
	
	BOARD COMPOSITION
			
	Section 2.1	  	Composition of the Board	  	2
	Section 2.2	  	Composition of Subsidiary Boards	  	4
	Section 2.3	  	Continuing Committee Representation	  	4
	Section 2.4	  	Scale-Back of Purchaser Board Representation	  	4
	Section 2.5	  	Scale-Back of FBR TRS Board Representation	  	4
	Section 2.6	  	Implementation	  	5
	Section 2.7	  	Observer Status	  	5
	
	ARTICLE 3
	
	AFFILIATE TRANSACTIONS
			
	Section 3.1	  	Affiliate Transactions	  	6
	
	ARTICLE 4
	
	REPRESENTATIONS AND WARRANTIES
			
	Section 4.1	  	Representations and Warranties	  	6
	
	ARTICLE 5
	
	MISCELLANEOUS
			
	Section 5.1	  	Term	  	7
	Section 5.2	  	Counterparts	  	7
	Section 5.3	  	Governing Law	  	7
	Section 5.4	  	Entire Agreement	  	7
	Section 5.5	  	Specific Performance	  	8
	Section 5.6	  	Notices	  	8
	Section 5.7	  	Assignment, Transfers	  	9
	Section 5.8	  	Headings	  	9
	Section 5.9	  	Amendments and Waivers	  	9
	Section 5.10	  	Interpretation; Absence of Presumption	  	9

					
	 	  	 	  	Page
	 Section 5.11
	  	Severability	  	10
	 Section 5.12
	  	Jurisdiction	  	10
	 Section 5.13
	  	Waiver of Jury Trial.	  	10
	 Section 5.14
	  	Further Assurances	  	10
	 Section 5.15
	  	Recapitalization, Etc.	  	10
	 Section 5.16
	  	FBR Group Guarantee	  	11
	 Section 5.17
	  	FBR TRS Acknowledgment	  	11

  

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 THIS VOTING AGREEMENT (the “Agreement“), dated as of July 20, 2006, is made by and
among Friedman, Billings, Ramsey Group, Inc., 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, “Purchaser“). 
 RECITALS: 
 WHEREAS, FBR Group, FBR TRS, FBR and Purchaser 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 Purchaser would acquire shares of common stock of the Company (“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 Purchaser 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 Purchaser is acquiring the Shares from the Company and is being granted the Options; 
 WHEREAS, following consummation of the transactions contemplated by the Investment Agreement, Purchaser will own a significant percentage of the equity interests in the Company; and 
 WHEREAS, the parties hereto desire to enter into this Agreement to provide for certain voting rights of the parties hereto in accordance with
Section 13.1-671 of the Virginia Stock Corporation Act. 
 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 hereto agree as follows: 
 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: 
 “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. 
  

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 “Director“ shall mean a member of the Board. 
 “FBR TRS Designees“ shall have the meaning specified in Section 2.1. 
 “Independent Directors“ shall have the meaning specified in Section 2.1. 
 “Original Shares“ shall mean the number of Shares acquired by Purchaser with the Invested Capital (including Shares issued in respect
of, in exchange for or in substitution of such Shares by reason of any Reorganization). 
 “Purchaser Designees“ shall have
the meaning specified in Section 2.1. 
 “Reorganization“ shall mean any reorganization, recapitalization, stock
dividend, stock split or any similar change in the capital structure of the Company. 
 ARTICLE 2 
 BOARD COMPOSITION 
 Section 2.1
Composition of the Board. Each of the parties to this Agreement agrees that it and its Affiliates which it controls will vote all of the Shares under its control to cause the Board, effective from and after the Closing, to have the following
size and composition: 
  

	 	(a)	Initial Board. (i) The Board will initially 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 “Purchaser Designees“); 

  

	 	(B)	three Directors shall be designated for election or appointment, as applicable, by FBR TRS (the “FBR TRS Designees“); and 

  

	 	(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 FBR TRS who shall be reasonably acceptable to Purchaser. 

  

	 	(ii)	The Purchaser Designees and FBR TRS Designees will be elected or appointed, as applicable, and seated as Directors no later than the Closing, and the Independent Directors shall be
designated for appointment, and shall be appointed, to fill the four vacancies existing on the Board 

  

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 immediately following the Closing as promptly as reasonably practicable thereafter (it being understood
that it may take some time following the Closing until all of the Independent Directors are identified). 
 (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 of common stock of the Company): 
  

	 	(i)	Any party hereto may designate any or all of its own designees for removal from the Board and may designate a nominee for appointment to the Board to fill any vacancy resulting from
any such removal. 

  

	 	(ii)	For so long as Purchaser 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 Purchaser Designee except for Cause and in that event the relevant Purchaser entity may nominate a replacement for the Director so removed. 

  

	 	(iii)	FBR TRS shall have the right to designate for removal any or all of the Independent Directors at any time and shall have the right to designate an Independent Director nominee to
fill the vacancy resulting from any such removal; provided that FBR TRS shall consult Purchaser with respect to the selection of a replacement for any such Independent Director. 

  

	 	(iv)	For so long as Purchaser 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, FBR TRS shall have the right to designate a replacement Independent Director who
shall be reasonably acceptable to Purchaser for appointment to fill the vacancy resulting from such departure; provided that if FBR TRS and Purchaser are unable to agree on the replacement Independent Director (x) FBR TRS 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 FBR TRS and Purchaser can agree on a permanent replacement and (y) if FBR TRS and Purchaser
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 FBR TRS and Purchaser. 

  

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 Section 2.2 Composition of Subsidiary Boards. Each of the parties to this Agreement agrees
that, for so long as Purchaser has the right to designate one Director nominee for election or appointment, as applicable, to the Board pursuant to this Article 2, Purchaser shall have the right to designate one of the Purchaser Designees (or
another representative reasonably acceptable to FBR TRS) 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 Purchaser Designee (or other representative reasonably acceptable to FBR TRS) to serve as a member of any such Subsidiary board of directors, such
Purchaser 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 to this Agreement agrees that, for so long as Purchaser 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 Purchaser Designee and one FBR TRS
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 Purchaser Board Representation. Each of the parties to this Agreement agrees that: 
 (a) From the time that (1) Purchaser 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) Purchaser 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 Purchaser Designee shall be
replaced by an additional Independent Director nominee designated for election or appointment to the Board by FBR TRS who shall be, in the case of clause (1) above only, reasonably acceptable to Purchaser. 
 (b) From and after such time as Purchaser and its Affiliates cease to own at least 66 2/3% of the Original Shares, Purchaser shall have no further approval rights with respect to Independent Directors. 
 Section 2.5 Scale-Back of FBR TRS Board Representation. Each of the parties to this Agreement agrees that: 
 (a) If FBR TRS sells, transfers or otherwise disposes of greater than 50% of its Shares (measured as of the Closing but including Shares issued in respect
of, in exchange for or in substitution of such Shares by reason of any Reorganization), FBR TRS shall no longer have the rights described in Section 2.1 above to select nominees for election or appointment to the Board as Independent Directors.

  

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 (b) FBR TRS shall retain the right to designate for election or appointment to the Board the three FBR
TRS Designees unless both (i) FBR TRS sells, transfers or otherwise disposes of greater than 50% of its Shares (measured as of the Closing but including Shares issued in respect of, in exchange for or in substitution of such Shares by reason of
any Reorganization) and (ii) none of Eric F. Billings, Richard J. Hendrix or J. Rock Tonkel, Jr. remains with the Company in a senior executive position. 
 Section 2.6 Implementation. 
 (a) Each of the parties to this Agreement 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 to this Agreement 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. 
 (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 to this Agreement 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 Representative to be provided with all communications and materials
that are provided 
  

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 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 Purchaser 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 
 AFFILIATE TRANSACTIONS 
 Section 3.1 Affiliate Transactions. Each of the parties to this Agreement 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 FBR TRS Designees (that is, by a majority of the Purchaser Designees and the Independent Directors). 
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES

 Section 4.1 Representations and Warranties. Each of FBR Group, FBR TRS and the Company, on the one hand, and Crestview ERISA
and Crestview LLC, on the other hand, represents and warrants to the other that: 
 (a) it is an entity duly organized and
validly existing and in good standing under the laws of the its jurisdiction of formation, with requisite power and authority to execute and deliver this Agreement, and to consummate the transactions contemplated hereby; 
  

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 (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 Purchaser and its Affiliates who are parties to this Agreement cease to own at least one percent (1%) of the Original Shares.

 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 hereto and delivered to each other party hereto. Copies of executed counterparts transmitted by telecopy, telefax or other
electronic transmission service shall be considered original executed counterparts for purposes of this Section, 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 STATE 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 hereto with respect to the subject matter hereof and there are no agreements, understandings, representations or warranties between
the parties hereto 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. 
  

 -7- 

 Section 5.5. Specific Performance. The parties hereto 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 hereto will have no adequate remedy at law or in equity. Accordingly, each party
hereto 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 hereto 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 FBR Group, FBR TRS, and FBR shall be addressed to such party in care of: 
 Friedman, Billings, Ramsey Group, Inc. 
 1001 Nineteenth Street North 
 Arlington, VA 22209 
 Attention: William J. Ginivan, Esq. 
 Telecopy Number: (703) 469-1140 
 with a copy to: 
 Wachtell, Lipton, Rosen & Katz 
 51 West 52nd Street, 30th Floor 
 New York, NY 10019-6150

 Attention: Trevor S. Norwitz, Esq. 
 Telecopy Number: (212) 403-2333 
 or at
such other address and to the attention of such other Person as FBR Group, FBR TRS, or FBR may designate by written notice to Purchaser. Notices to Purchaser shall be addressed to: 
 Forest Holdings LLC 
 Forest Holdings (ERISA) LLC 
 c/o Crestview Capital Partners, L.P. 
 667 Madison Avenue 
 New York, NY 10021 
 Attention: Jacob Capps 
 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 
  

 -8- 

 or at such other address and to the attention of such other Person as Purchaser may designate by written notice to FBR
Group, FBR TRS, and FBR. 
 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 hereto 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 hereto. 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 hereto. 
 (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 to be bound by the obligations of FBR TRS set forth in Article 2 of this Agreement to vote for and otherwise support the provisions of Article 2 for the benefit of Purchaser.

 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 hereto. Any party hereto may, only by an instrument in writing, waive compliance by the other parties hereto with any term or provision
hereof on the part of such other parties hereto to be performed or complied with. The waiver by any party hereto 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. 
  

 -9- 

 (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 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 hereto 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 hereto under this Agreement.

  

 -10- 

 Section 5.16 FBR Group Guarantee. FBR Group hereby guarantees to the Purchaser 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 the Purchaser 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 the Purchaser) set forth in such Section 5.07. 
  

 -11- 

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

					
	Forest Holdings LLC
		
	By:	 	Crestview Capital Partners, L.P., as Member
			
		 	By:	 	Crestview Partners, L.P., its General Partner
			
		 	By:	 	Crestview, L.L.C., its General Partner
		
	By:	 	 /s/ Thomas S. Murphy, Jr.

	Name:	 	Thomas S. Murphy, Jr.
	Title:	 	President
	
	Forest Holdings (ERISA) LLC
		
	By:	 	Crestview Capital Partners (ERISA), L.P., as Member
			
		 	By:	 	Crestview Partners, L.P., its General
		 		 	Partner
			
		 	By:	 	Crestview, L.L.C., its General Partner
		
	By:	 	 /s/ Thomas S. Murphy, Jr.

	Name:	 	Thomas S. Murphy, Jr.
	Title:	 	President
	
	Friedman Billings Ramsey Group, Inc.
		
	By:	 	 /s/ William J. Ginivan

	Name:	 	William J. Ginivan
	Title:	 	SVP and Chief Legal Officer
	
	FBR TRS Holdings, Inc.
		
	By:	 	 /s/ William J. Ginivan

	Name:	 	William J. Ginivan
	Title:	 	General Counsel
	
	FBR Capital Markets Corporation
		
	By:	 	 /s/ William J. Ginivan

	Name:	 	William J. Ginivan
	Title:	 	SVP, General Counsel and Secretary

 [SIGNATURE PAGE TO VOTING AGREEMENT] 
  

 -12-

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