Document:

Exhibit 10.1

 EXHIBIT 10.1 
 EXECUTION COPY 
 STOCK REPURCHASE AGREEMENT 
 THIS STOCK REPURCHASE AGREEMENT (this “Agreement”) is dated as of May 18, 2009, and is by and among FBR CAPITAL MARKETS
CORPORATION, a corporation organized under the laws of the Commonwealth of Virginia (the “Company”), FBR TRS HOLDINGS, INC., a corporation organized under the laws of the Commonwealth of Virginia (“Seller”), and
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. (d/b/a ARLINGTON ASSET INVESTMENT CORP.), a corporation organized under the laws of the Commonwealth of Virginia (“Group”). The Company, Seller, and Group are sometimes referred to herein
individually as a “Party” and collectively as the “Parties.” 
 RECITALS 
 WHEREAS, Seller, which is a direct, wholly-owned subsidiary of Group, is the record holder of 33,333,049 shares of the Company’s common stock, par
value $0.001 per share (the “Common Stock”); and 
 WHEREAS, each of Seller and Group desires for Seller to sell and
transfer to the Company, and the Company desires to purchase from Seller, 16,667,000 shares of Common Stock (the “Shares”), all as more fully set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 
 AGREEMENT 
 ARTICLE I 
 DEFINITIONS

 Section 1.1    Definitions. Among other defined terms contained in this Agreement, as used in this
Agreement, the following terms shall have the meanings ascribed thereto: 
 “Affiliate” shall mean, with respect to any
Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such party. The term “control” (including, with correlative meaning, the terms “controlling”, “controlled by”,
and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership
of voting securities, by contract or otherwise. 
 “Amended and Restated Voting Agreement” shall mean that certain Amended
and Restated Voting Agreement substantially in the form attached hereto as Exhibit A, with any changes to the form agreed to by Group and the Company. 
 “Assignment and Assumption Agreement” shall mean that certain Assignment and Assumption Agreement substantially in the form attached hereto as Exhibit B, with any changes to the form agreed to
by Group and the Company. 
  

 1 

 “Domain Name Assignment” shall mean that certain Domain Name Assignment substantially in
the form attached hereto as Exhibit C, with any changes to the form agreed to by Group and the Company. 
 “Encumbrances” shall mean all liens, claims, charges, assessments, options, security interests, proxies, agreements to vote and other legal and equitable encumbrances. 
 “Escrow Agreement” shall mean that certain Escrow Agreement substantially in the form attached hereto as Exhibit D, with any
changes to the form agreed to by Group and the Company. 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended. 
 “Governmental Authority” shall mean any court, government (federal, state, local or foreign), department,
commission, board, bureau, agency, official or other regulatory, administrative or governmental body. 
 “Person” shall mean
any individual, corporation, partnership, joint venture, limited liability company, association, joint-stock company, trust, unincorporated organization or Governmental Authority. 
 “Registration Expenses” shall mean any and all expenses incident to the Follow-on Offering (as defined herein) and the performance of or
compliance with Section 6.2(b) of this Agreement, including, without limitation: (a) all Securities and Exchange Commission, securities exchange, FINRA registration, listing, inclusion and filing fees, (b) all fees and expenses
incurred in connection with compliance with international, federal or state securities or blue sky laws (including, without limitation, any registration, listing and filing fees and reasonable fees and disbursements of counsel in connection with
blue sky qualification of any of the Remaining Shares and the preparation of a blue sky memorandum and compliance with the rules of FINRA), (c) all expenses in preparing or assisting in preparing, word processing, duplicating, printing,
delivering and distributing any registration statement, any prospectus, any amendments or supplements thereto, any underwriting agreements, securities sales agreements, certificates and any other documents relating to the Follow-on Offering and the
performance under and compliance with Section 6.2(b) of this Agreement, (d) the fees and disbursements of counsel for the Company and of the independent public accountants of the Company (including, without limitation, the expenses
of any special audit and “cold comfort” letters required by or incident to such performance), and (e) any fees and disbursements customarily paid in issues and sales of securities (including the fees and expenses of any experts
retained by the Company in connection with any registration statement); provided, however, that Registration Expenses shall exclude (i) brokers’ or underwriters’ discounts and commissions, if any, relating to the sale or
disposition of any of the shares to be sold by or on behalf of Group in the Follow-on Offering and any Remaining Shares, and (ii) the fees and disbursements of counsel for Group or any selling securityholder. 
  

 2 

 “Registration Rights Agreement” shall mean that certain Registration Rights Agreement,
dated as of January 26, 2009, by and between the Company and Group. 
 “Related Agreements” shall mean the Amended and
Restated Voting Agreement, the Assignment and Assumption Agreement, the Domain Name Assignment, the Escrow Agreement, the Trademark and Copyright Assignment, Trademark License Agreement, and the Transition Services Agreement. 
 “Remaining Shares” shall mean (a) 16,666,049 shares of Common Stock beneficially owned by Group immediately after the Closing, plus
(b) any shares of capital stock of the Company that are issued in any reclassification, share combination, share subdivision, share dividend, share exchange, merger, consolidation or similar transaction or event in respect of the shares
described in clause (a). 
 “Trademark and Copyright Assignment” shall mean that certain Trademark and Copyright Assignment
substantially in the form attached hereto as Exhibit E, with any changes to the form agreed to by Group and the Company. 
 “Trademark License Agreement” shall mean that certain Trademark License Agreement substantially in the form attached hereto as Exhibit F, with any changes to the form agreed to by Group and the Company. 

“Transition Services Agreement” shall mean that certain Transition Services Agreement substantially in the form attached hereto as
Exhibit G, with any changes to the form agreed to by Group and the Company. 
 ARTICLE II 
 PURCHASE AND SALE OF SHARES 
 Section
2.1    Purchase and Sale of Shares. Upon the terms and subject to the conditions set forth herein, at the Closing, Seller shall sell, transfer, assign, convey and deliver to the Company, and the Company shall purchase,
acquire and accept from Seller, the Shares, free and clear of all Encumbrances other than Encumbrances created by the Company or this Agreement. 
 Section 2.2    Purchase Price. Upon the terms and subject to the conditions set forth herein, as payment in full for the Shares being purchased hereunder, at the Closing, the Company shall pay to Seller $4.35 per
share (the “Per Share Price”), representing an aggregate purchase price for the Shares of $72,501,450 (the “Purchase Price”). 
 ARTICLE III 
 CLOSING 
 Section 3.1    Closing. 
 (a) Subject to the terms and conditions of this Agreement, the closing of the purchase and sale of the Shares contemplated hereby (the “Closing”) shall take place at the 

  

 3 

 
offices of the Company at 1001 Nineteenth Street North, Arlington, Virginia 22209, at or about 9:00 a.m., local time, on a business day that is not later
than the 10th business day following the date of this Agreement, such date to be determined by Seller who shall give the Company notice thereof no
later than 5:00 p.m. on the business day prior to the date of Closing, or at such other location, date and time as the Parties may mutually agree. 
 (b) Notwithstanding and not in lieu of any other legal rights that a Party may have against any other Party, in the event that a Party fails to perform its obligations pursuant to the terms of this Agreement at the
Closing, such defaulting Party shall be responsible for all reasonable out-of-pocket expenses incurred by the non-defaulting Parties incurred or payable in connection with this Agreement, the Related Agreements, and the transactions contemplated
hereby or thereby, including the fees and disbursements of legal counsel and financial advisors to the non-defaulting Parties. 
 Section
3.2    Payment of the Purchase Price. Upon the terms and subject to the conditions of this Agreement, at the Closing, the Company shall pay the Purchase Price to Seller by wire transfer of immediately available funds to
the account designated by Seller on Exhibit H. 
 Section 3.3    Delivery of the Shares. Upon the terms and
subject to the conditions of this Agreement, at the Closing, Seller shall transfer ownership of the Shares to the Company, which shall be effected by execution by Group, Seller, and the Company of a share transfer instruction letter to American
Stock Transfer and Trust Company substantially in the form of Exhibit I. 
 Section 3.4    Closing Conditions
and Deliveries. 
 (a) The obligations of the Company to consummate the transactions contemplated by this Agreement shall be subject to
the fulfillment, at or prior to the Closing, of each of the following conditions, any of which may be waived in writing by the Company in its sole discretion: 
 (i) The Shares shall have been delivered to the Company in accordance with Section 3.3. 
 (ii) The representations and warranties of Seller and Group contained in this Agreement shall be true and correct both when made and as of
the Closing, or, in the case of representations and warranties that are made as of a specified date, such representations and warranties shall be true and correct as of such specified date. Each of Seller and Group shall have performed all covenants
and agreements required by this Agreement to be performed by it prior to or at the Closing. 
 (iii) The Company shall have
received copies of each of the Related Agreements to which it is a party duly executed by each other party thereto. 
  

 4 

 (iv) The Company shall have received the executed share transfer instruction letter
referred to in Section 3.3 executed by Seller and Group. 
 (b) The obligations of Seller and Group to consummate the
transactions contemplated by this Agreement shall be subject to the fulfillment, at or prior to the Closing, of each of the following conditions, any of which may be waived in writing by Group in its sole discretion: 
 (i) The Company shall have paid the Purchase Price to Seller in accordance with Section 3.2. 
 (ii) The representations and warranties of the Company contained in this Agreement shall be true and correct both when made and as of the
Closing, or, in the case of representations and warranties that are made as of a specified date, such representations and warranties shall be true and correct as of such specified date. The Company shall have performed all covenants and agreements
required by this Agreement to be performed by it prior to or at the Closing. 
 (iii) Seller and Group shall have received
copies of each of the Related Agreements to which either is a party duly executed by each other party thereto. 
 (iv) Seller
and Group shall have received the executed share transfer instruction letter referred to in Section 3.3 executed by the Company. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF SELLER AND GROUP 
 Seller and Group hereby jointly and severally represent and warrant to the Company, as of the date of this Agreement and as of the Closing, as follows:

 Section 4.1    Existence; Good Standing. Each of Seller and Group is a corporation duly organized, validly
existing, and in good standing under the laws of the Commonwealth of Virginia. 
 Section 4.2    Authority. Each
of Seller and Group has the requisite corporate power and authority to execute and deliver this Agreement and to perform all of the obligations to be performed by each of them hereunder. This Agreement has been duly authorized, executed and
delivered by each of Seller and Group, and it represents the legal, valid and binding obligation of each of them enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium, receivership, conservatorship, and other laws relating to and affecting creditors’ rights generally and by general equity principles. 
 Section 4.3    Title to Shares. Seller is the sole record holder of the Shares, free and clear of all Encumbrances, and the delivery of the Shares to the Company pursuant to the transactions
contemplated by this Agreement will transfer and convey good and valid title thereto to the Company, free and clear of all Encumbrances other than Encumbrances created by the Company or this Agreement. 
  

 5 

 Section 4.4    No Approvals. No consent, approval, authorization or order of,
or filing with, any Governmental Authority or any court is required to be obtained or made by either Seller or Group for the consummation of the transactions contemplated by this Agreement. Group, in its capacity as sole shareholder of Seller, and
acting through its Board of Directors, has adopted resolutions approving of Seller entering into this Agreement. 
 Section
4.5    No Conflicts. Neither the execution, delivery and performance of this Agreement by Seller or Group, nor the compliance with or fulfillment of the terms, conditions and provisions hereof by Seller or Group, shall
conflict with, result in a breach of the terms, conditions or provisions of, or constitute a default, an event of default or an event creating rights of acceleration, termination or cancellation or a loss of rights under, or result in the creation
or imposition of any Encumbrance upon any of the Shares, under (a) the articles of incorporation or by-laws of Seller or Group, respectively, (b) any material note, instrument, agreement, mortgage, lease, license, franchise, permit or
other material authorization, right, restriction or obligation to which Seller or Group, respectively, is a party or the Shares are subject or by which Seller or Group, respectively, is bound, (c) any court order to which Seller or Group is a
party or any of the Shares are subject or by which Seller or Group is bound, or (d) any requirements of laws, rules or regulations affecting Seller or Group, or the Shares or otherwise applicable to the transactions contemplated by this
Agreement. 
 Section 4.6    Material Non-Public Information. Each of Seller and Group acknowledges that the
Company and its Affiliates, officers and directors, may possess material non-public information not known to Seller or Group regarding or relating to the Company, including, but not limited to, information concerning the business, financial
condition, results of operations, prospects or other plans of the Company, and that neither Seller nor Group has received or requested any such information, and each agrees that neither the Company nor its Affiliates, officers or directors shall
have any liability whatsoever to Seller or Group with respect to the nondisclosure of any such material non-public information, whether before or after the date of this Agreement. 
 Section 4.7    Value of the Shares. Each of Seller and Group acknowledges and confirms that it is aware that the closing sale
price of the Common Stock, as reported by the NASDAQ Stock Market (the “Stock Price”), has fluctuated since Seller purchased the Shares and is likely to continue to fluctuate after the date of this Agreement, including possible
material increases to such Stock Price. Each of Seller and Group further acknowledges and confirms that it is aware that future changes and developments in (a) the Company’s business and financial condition and operating results,
(b) the industries in which the Company competes, and (c) overall market and economic conditions, may have a favorable impact on the value of the Common Stock after the sale by Seller of the Shares to the Company pursuant to the terms of
this Agreement. Each of Seller and Group has determined to forego the possibility of any such future increases in value to obtain the consideration being paid pursuant hereto for its investment with respect to the Shares. Each of Seller and Group
acknowledges that the 

  

 6 

 
Company has not made any representation to it about the advisability of this decision or the potential future value of the Shares being sold by Seller.

 Section 4.8    Tax Matters. Each of Seller and Group has had opportunity to review with its own tax advisors
the federal, state and local tax consequences of the sale of the Shares held by Seller to the Company and the transactions contemplated by this Agreement. Each of Seller and Group is relying solely on itself and its respective advisors and not on
any statements or representations of the Company other than those that may be explicitly contained herein. Each of Seller and Group understands that it (and not the Company) shall be responsible for its own tax liability, if any, that may arise as a
result of the transactions contemplated by this Agreement. 
 Section 4.9    Finders or Brokers. Except for UBS
Securities LLC, whose fees and expenses shall be paid by Seller and/or Group, neither Seller nor Group has agreed to pay any fee or commission to any agent, broker, finder, investment banker, or other Person for or on account of services rendered as
a broker or finder or other similar services in connection with this Agreement or the transactions contemplated hereby and that would give rise to any valid claim against the Company for any brokerage commission, finder’s fee, investment
banking fee, or similar payment. 
 Section 4.10    No Other Representations or Warranties. Seller and Group each
acknowledges and agrees that neither of them is relying upon any representations or warranties of the Company, express or implied, except those contained herein, and Seller and Group each specifically does not request, desire or require the Company
to make any other representations or warranties whatsoever with respect to the Company and/or the Shares or any other matter with respect to any of the transactions contemplated hereby. 
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
 The Company hereby represents and warrants to Seller and Group, as of the date of this Agreement and as of the Closing, as follows: 
 Section 5.1    Existence; Good Standing. The Company is a corporation duly organized, validly existing, and in good standing
under the laws of the Commonwealth of Virginia. 
 Section 5.2    Authority. The Company has the requisite
corporate power and authority to execute and deliver this Agreement and to perform all of the obligations to be performed by it hereunder. This Agreement has been duly authorized, executed and delivered by the Company and it represents the legal,
valid and binding obligation of the Company enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship, and other laws relating to and
affecting creditors’ rights generally and by general equity principles. 
  

 7 

 Section 5.3     No Approvals. No consent, approval, authorization or order of,
or filing with, any Governmental Authority or any court is required to be obtained or made by the Company for the consummation of the transactions contemplated by this Agreement. 
 Section 5.4     No Conflicts. Neither the execution, delivery and performance of this Agreement by the Company, nor the
compliance with or fulfillment of the terms, conditions and provisions hereof by the Company, shall conflict with, result in a breach of the terms, conditions or provisions of, or constitute a default, an event of default or an event creating rights
of acceleration, termination or cancellation or a loss of rights under (a) the articles of incorporation or by-laws of the Company, (b) any material note, instrument, agreement, mortgage, lease, license, franchise, permit or other material
authorization, right, restriction or obligation to which the Company is a party or by which the Company is bound, (c) any court order to which the Company is a party or by which the Company is bound, or (d) any requirements of laws, rules
or regulations affecting the Company or otherwise applicable to the transactions contemplated by this Agreement. 
 Section
5.5    Value of the Shares. The Company acknowledges and confirms that it is aware that the Stock Price has fluctuated since Seller purchased the Shares and is likely to continue to fluctuate after the date of this
Agreement, including possible material decreases to such Stock Price. The Company further acknowledges and confirms that it is aware that future changes and developments in (a) its business and financial condition and operating results,
(b) the industries in which it competes, and (c) overall market and economic conditions, may have an unfavorable impact on the value of the Common Stock after the sale by Seller of the Shares to the Company pursuant to the terms of this
Agreement. The Company has determined to forego the possibility of any such future decreases in value to obtain the Shares for the consideration being paid pursuant hereto. The Company acknowledges that neither Seller nor Group has made any
representation to it about the advisability of this decision or the potential future value of the Shares being sold by Seller. 
 Section
5.6    Tax Matters. The Company has had opportunity to review with its own tax advisors the federal, state and local tax consequences of its purchase of the Shares held by Seller and the transactions contemplated by this
Agreement. The Company is relying solely on itself and its respective advisors and not on any statements or representations of Seller or Group other than those that may be explicitly contained herein. The Company understands that it (and not Seller
or Group) shall be responsible for its own tax liability, if any, that may arise as a result of the transactions contemplated by this Agreement. 
 Section 5.7    Fairness Opinion. The Board of Directors of the Company has received an opinion from Sandler O’Neill + Partners, L.P. to the effect that, as of the date hereof, the Per Share Price is fair to
the Company from a financial point of view. 
 Section 5.8    Finders or Brokers. Except for Sandler O’Neill
+ Partners, L.P., whose fees and expenses shall be paid by the Company, the Company has not agreed to pay any fee or commission to any agent, broker, finder, investment banker, or other Person for or on account of services rendered as a broker or
finder or other similar services in connection with this 

  

 8 

 
Agreement or the transactions contemplated hereby and that would give rise to any valid claim against Seller or Group for any brokerage commission,
finder’s fee, investment banking fee, or similar payment. 
 ARTICLE VI 
 COVENANTS AND OTHER AGREEMENTS OF THE PARTIES 
 Section
6.1     Intercompany Agreements. 
 (a) The Parties agree that, effective upon the Closing, the following
agreements existing between or among them shall be terminated in their entirety and be of no further force or effect: (i) that certain Corporate Agreement, dated as of July 20, 2006, and as amended by Amendment No. 1 to Corporate
Agreement, dated as of April 5, 2007, by and between the Company and Group (including, without limitation, termination of (x) all of the indemnification rights and obligations (whether for existing or future claims) under the Corporate
Agreement and (y) provisions that otherwise would, by their terms, survive termination of such agreement pursuant to Article VI thereof); (ii) that certain Services Agreement, dated as of July 20, 2006, by and between the Company
and Group; and (iii) that certain Trademark License Agreement, dated as of July 20, 2006, by and between Group and the Company. 
 (b) The Parties acknowledge and agree that, in connection with the consummation of the transactions contemplated hereby, at the Closing, each Party will execute and deliver the Related Agreements to which it is a party. 
 (c) Notwithstanding any other provision contained in this Agreement, the Parties acknowledge and agree that (i) that certain Tax Sharing Agreement,
dated as of July 20, 2006, by and between Seller and the Company, (ii) that certain Assignment and Assumption Agreement entered into in January 2009, by and between Group and the Company with respect to certain leases, (iii) that
certain Assignment Agreement effective as of February 23, 2009, by and between Group and the Company with respect to the “Arlington Asset Investment Corp.” name, and (iv) notwithstanding Section 6.2(b) and subject to
Section 6.2(a), the Registration Rights Agreement are not being terminated or amended in connection with the transactions contemplated hereby and shall continue in full force and effect in accordance with their terms. 
 Section 6.2     Follow-on Offering Rights and Obligations; Other Matters. 
 (a) Seller and Group agree that, notwithstanding any rights that either of them (or any of their Affiliates) may have under the Registration Rights
Agreement, neither of them shall exercise and they hereby waive any such rights with respect to the first registered follow-on offering of Common Stock (the “Follow-on Offering”), if any, within one year of the date of the Closing
(the “Waiver Period”); provided, however, that that during the Waiver Period, if the aggregate public offering price of the shares of Common Stock to be registered and sold in the Follow-on Offering exceeds $90 million
(the “Minimum Offering Price,” which shall not include any shares proposed to be registered by Group), then Group shall have the option to elect either: 

  

 9 

 
(x) to sell up to 50% of the shares registered and sold in the Follow-on Offering (including as part of any underwriters’ over allotment option) in
excess of the Minimum Offering Price; or (y) sell up to 100% of the shares to be sold pursuant to the underwriters’ over allotment option in the Follow-on Offering; and provided, further, that if Group elects to participate
in the Follow-on Offering pursuant to either clause (x) or (y) above, then prior to the printing or finalization of any preliminary prospectus for the Follow-on Offering (the “Launch Date”), Group shall be required to
irrevocably commit to sell the number of shares determined in accordance with clause (x) or (y) above in writing to the Company, and to execute such other instruments and enter into such other arrangements as are customary for selling
shareholders in an underwritten public offering. Such irrevocable notice must be received at least three business days prior to the Launch Date, following reasonable notice of such Launch Date by the Company, which shall in any event be given not
less than three business days prior to the Launch Date. Each of Seller and Group further agree (on behalf itself and its Affiliates) that, as part of the Follow-on Offering, each of them will agree to enter into a standard and customary restriction
on the sale of securities for the same period following such offering as to which others are subject with respect to such offering. To the extent there is any conflict between the terms of this Section 6.2(a) and the Registration Rights
Agreement as to the matters discussed in this Section 6.2(a), the Parties agree that this Section 6.2(a) shall govern. Seller and Group further agree that, between the date hereof and the Follow-on Offering, neither Seller
nor Group, either directly or indirectly, will sell, convey, assign, transfer, or otherwise dispose of any shares of Common Stock unless (i) such transaction is approved in writing in advance by the Company, (ii) the Company has not filed
a registration statement with respect to the Follow-on Offering within 45 days of the date of the Closing, or (iii) such transaction is at a price per share at least equal to $4.35. The Company shall pay all Registration Expenses incurred in
connection with the Follow-on Offering. 
 (b) Subject to the penultimate sentence of Section 6.2(a), in the event that Group
sells, or, with respect to a Resale Shelf (as defined below) naming Group or any of its Affiliates as a selling security holder, proposes to sell, at least 400,000 Remaining Shares to one or more third party transferees (each a “Selling
Shareholder”), the Company agrees, at Group’s written request (a “Registration Request”), that it will (i) file a registration statement on Form S-1 or S-3, as applicable, with the Securities and Exchange
Commission (a “Resale Shelf”) to include such number of Remaining Shares as are held by one or more Selling Shareholders (and which may include Group or any of its Affiliates as a selling security holder as if it were a Selling
Shareholder, provided that Sections 2(g) and 6 of the Registration Rights Agreement shall be applicable to the inclusion on a Resale Shelf of any Remaining Shares beneficially owned by Group or any of its Affiliates), as soon as reasonably
practicable after the Registration Request and in any event no later than 90 days after the date of such request, and use commercially reasonable efforts to have declared effective such Resale Shelf, and (ii) subject to the conditions in
Section 6 of the Registration Rights Agreement, will maintain the effectiveness of such Resale Shelf until the earlier of (A) the second anniversary of the date of effectiveness of the Resale Shelf, and (B) the date on which the
Securities are disposed of or are eligible for sale pursuant to Rule 144(b)(1) (or any successor provision) under the Securities Act of 1933, as amended (the “Securities Act”); provided, that (x) in the event the Company
is eligible to file a Resale Shelf on Form S-3 (or any other successor short form registration statement) on a 

  

 10 

 
secondary basis and (A) meets the eligibility requirements of instruction I.B.1 of Form S-3 and (B) is eligible to omit the identities of selling
security holders pursuant to Rule 430B (or any successor rule) under the Securities Act, Group may only make one Registration Request with respect to a Resale Shelf, (y) if the Company is not eligible to file a Resale Shelf in accordance with
clause (x) above then either (1) if the Company is otherwise eligible to use Form S-3, Group may make up to four Registration Requests with respect to a Resale Shelf on behalf of Selling Shareholders or (2) if the Company is not
eligible to use Form S-3, Group may make up to six Registration Requests on behalf of Selling Shareholders, and (z) in the event the Company files a Resale Shelf on Form S-3 in accordance with (x) or (y)(1) above and thereafter ceases to
qualify to use Form S-3, Group may make up to six Registration Requests on behalf of Selling Shareholders; provided, however, in no event may Group make more than a total of six Registration Requests. The Parties agree that the Company
will not have any obligation to engage in any underwritten offering or participate in road show activities with respect to a Resale Shelf, and no other registration rights will be granted by the Company, or transferred by Group, to any Selling
Shareholder. The Company shall pay all Registration Expenses incurred in connection with the first Resale Shelf and the Company and Group shall each pay one-half of the Registration Expenses incurred in connection with the second and any subsequent
Resale Shelf. Group agrees to use commercially reasonable efforts to manage its requests to the Company with respect to the filing of any Resale Shelf pursuant to this Section 6.2(b) so as to minimize the number of resale registration
statements to be filed. Notwithstanding anything herein to the contrary, a Registration Request shall not include requests to file prospectus supplements or post-effective amendments to an effective Resale Shelf. Notwithstanding anything herein to
the contrary, a Resale Shelf shall not be deemed to have been effected (and, therefore, a Registration Request shall be deemed not to have been exercised) unless such Resale Shelf has become effective (except if the Registration Request is revoked
by Group), or if, after such Resale Shelf has become effective, such Resale Shelf is interfered with by any stop order, injunction or other order or requirement of the Securities and Exchange Commission or other governmental agency or court for any
reason other than a misrepresentation or an omission by Group or a Selling Shareholder. 
 Section 6.3     Proxies and
Voting of the Shares. 
 (a) Each of Seller and Group represents, covenants and agrees that it has not and shall not grant to any Person
any proxy with respect to any of the Shares (other than to a designated representative of the Company pursuant to a proxy statement of the Company). Each of Seller and Group further covenants and agrees that it shall cause all of the Shares for
which it has the right to vote as of the record date for the Company’s next shareholders’ meeting to be held on June 4, 2009 to be present for quorum purposes and to be voted at such meeting or at any adjournments or postponements
thereof, (i) in favor of the nominees for director proposed by the incumbent Board of Directors of the Company (the “Board”) for election at any such meeting, and (ii) in accordance with the recommendation of the Board for
each other matter that is subject to a vote of the stockholders at such meeting. 
 (b) In furtherance of the foregoing, prior to the date
hereof Seller and Group have executed, dated and delivered to a designated representative of the Company a completed 

  

 11 

 
proxy (the “Proxy”) for the Company’s Annual Meeting of Stockholders to be held on June 4, 2009 (the “Annual
Meeting”), which Proxy will be voted (i) in favor of each director nominated and recommended by the Board for election at the Annual Meeting and (ii) in accordance with the recommendation of the Board for each other matter that is
subject to a vote of the stockholders at the Annual Meeting. Each of Seller and Group further covenants and agrees that (A) it shall not revoke the Proxy without the Company’s consent, and (B) subject to applicable law, if requested
by the Company, assuming the Shares were issued and outstanding as of the new record date applicable to the solicitation, it shall grant a new proxy to a designated representative of the Company to vote in favor of each director nominated and
recommended by the Board for election and in accordance with the recommendation of the Board for each other matter that is subject to a vote of the stockholders, in each case in connection with any new solicitation of proxies by the Company in
connection with the Annual Meeting or any adjournments or postponements thereof. 
 Section 6.4     Access to
Information. 
 (a) From and after the date of the Closing of and until the seventh anniversary of the date of the Closing, in connection
with any reasonable purpose relating to the operation of Seller’s or Group’s respective business prior to the date of the Closing or the ownership of the Shares prior to the date of the Closing (including the preparation of financial
statements or tax returns or any legal or administrative action to which Seller or Group may become subject that relate to periods prior to the date of the Closing) or the rights or obligations of Seller or Group or any of their respective
Affiliates under this Agreement or any of the Related Agreements, and except as determined in good faith to be appropriate to ensure compliance with any applicable laws and subject to any applicable privileges (including the attorney-client
privilege), the Company shall permit Seller and Group and their respective representatives to have reasonable access, upon reasonable notice and during normal business hours, to the Company and all relevant books, records and documents of the
Company (including computer records archives and documents stored offsite with any vendors) and shall furnish to Seller or Group or any of their respective Affiliates such financial and other information regarding the Company as Seller or Group may
from time to time reasonably request that are reasonably related to such purposes; provided, however, that the foregoing do not unreasonably disrupt the Company’s operation of its business. Seller and Group and their respective
representatives shall be given reasonable access, upon reasonable notice and during normal business hours, to executive officers of the Company that have management or oversight responsibility for matters relating to the matters set forth above,
including the use of such individuals as witnesses in hearings or trials; provided, that the foregoing does not unreasonably disrupt the business of the Company. Notwithstanding anything herein to the contrary, the Company shall not be
required to disclose to Seller or Group or their respective representatives any confidential or proprietary information not relating primarily to the purposes set forth above or to permit Seller or Group or their respective representatives to copy
or remove from the properties or offices of the Company or any of its Affiliates any confidential or proprietary information. 
 (b) The
Company agrees that, following the Closing, for so long as Group has beneficial ownership of less than 50% but equal to or greater than 20% of the Company’s 

  

 12 

 
Common Stock, the Company will make available to Seller and Group the information reasonably requested by Group and required under generally accepted
accounting principles to enable Group to prepare its financial statements using the equity method accounting with respect to its ownership interest in the Company. Without limiting the generality of the foregoing, the Company shall use commercially
reasonable efforts to provide Seller and Group with an estimate of the Company’s quarterly consolidated net income and shareholders’ equity no later than five business days after the last day of each fiscal quarter; provided, that
if the Company will be unable to provide such information within five business days after using commercially reasonable efforts, the Company will notify Group and will continue to use commercially reasonable efforts to provide such information to
Seller and Group as soon as practicable and in any event no later than 10 business days after the last day of such fiscal quarter. 
 (c)
Except as required by law, regulation or legal or judicial process, Group agrees that it and its Affiliates and their respective directors, officers or employees will not, without the prior written consent of the Company, disclose to any Person any
non-public information concerning the business or affairs of the Company or any of its Affiliates acquired from any director, officer or employee of the Company or any of its Affiliates (whether before or after the date hereof); provided,
however, that following the Closing, the Company will cooperate diligently and in good faith with Group, if requested, to facilitate the sale of the Remaining Shares of the Company’s Common Stock, in whole or in part, to prospective
purchasers by, among other things, permitting prospective purchasers to carry out reasonable due diligence with respect to the Company and by making the Company’s Chief Executive Officer and other senior officers reasonably available to address
inquiries from such prospective purchasers, so long as any such prospective purchaser agrees to enter into customary confidentiality and standstill agreements with the Company, which for the first year after the date of the Closing shall be
substantially in the form of, and in no event more burdensome to such prospective purchaser than, the confidentiality agreement and standstill agreement attached hereto as Exhibit J; provided, however, that the standstill
agreement will last no longer than nine months and will provide that a prospective purchaser may acquire shares of Common Stock that together with any other shares of Common Stock beneficially owned by such prospective purchaser does not constitute
beneficial ownership of 20% or more of the outstanding shares of Common Stock on a diluted basis; provided, further, that the standstill agreement will permit prospective purchasers that do not otherwise beneficially own any shares of
Common Stock to acquire beneficial ownership of 20% or more of the outstanding shares of Common Stock on a diluted basis only as a result of, and immediately following, purchases of any of the Remaining Shares from Group; and provided,
further, that the Company will negotiate the terms of, and requested modifications to, the form of confidentiality agreement and standstill agreement attached hereto as Exhibit J in good faith with any prospective purchaser who
negotiates in good faith with the Company, provided that the changes requested by the prospective purchaser do not alter the obligations of the parties thereto in any material respect. 
 Section 6.5     Announcements; Filings. Prior to filing any materials or documents with any Person in connection with the
transactions contemplated by this Agreement, each of Seller, 

  

 13 

 
Group, and the Company agrees that it shall use its respective reasonable efforts to afford the other Parties a reasonable opportunity to review and comment
on such materials or documents. 
 Section 6.6    Termination of Rights as Stockholder. The Parties hereby agree
that, effective upon the consummation of the transactions contemplated hereby, nether Seller nor Group shall any longer have any rights or privileges associated with being a holder of the Shares. 
 Section 6.7    Equity Awards. The Parties agree that all equity awards that have been granted to any current or former
executive officers or employees of such Parties shall continue in accordance with the terms of the operative plans or agreements pursuant to which they were granted, and shall not be affected by this Agreement or the transactions contemplated
hereby. 
 ARTICLE VII 
 MISCELLANEOUS 
 Section 7.1    Notices. All notices, requests, permissions, waivers, and other
communications to be given or otherwise made to any Party to this Agreement shall be deemed to be duly given upon actual receipt, and shall be delivered in a written instrument, delivered in person, by express overnight courier service, by
electronic facsimile transmission (with a copy sent by first class mail, postage prepaid), or by registered or certified mail, return receipt requested, postage prepaid, addressed to such Party at the address set forth below or at such other address
as may hereafter be designated in writing by a Party to each of the other Parties: 
  

			
	 If to the Company:
	  	 FBR Capital Markets Corporation
 1001 Nineteenth St.
North
 Arlington, VA 22209
 Attention: Chief Legal
Officer
 Facsimile: (703) 469-1140

		
	 If to Group:
	  	 Friedman, Billings, Ramsey Group, Inc.,
 (d/b/a
Arlington Asset Investment
 Corp.)
 1001 Nineteenth St. North

 Arlington, VA 22209
 Attention: Chief Executive
Officer
 Facsimile: (703) 469-1145

		
	 If to Seller:
	  	 FBR TRS Holdings, Inc.
 1001 Nineteenth St.
North
 Arlington, VA 22209
 Attention: Chief Executive Officer

 Facsimile: (703) 469-1145

  

 14 

 Section 7.2     Assignment; Successors and Assigns. This Agreement may not be
assigned by any Party without the prior written approval of the other Parties; provided, however, that each of Group and the Company may assign all or a part of its respective interest in this Agreement and its respective rights
hereunder to any of its respective Affiliates, provided that any such assignment shall not relieve the Party making such assignment from fulfilling any its obligations hereunder; and provided, further, that Group may not assign to any
of its Affiliates any obligation to transfer the Shares to the Company. This Agreement shall be binding upon, and shall inure to the benefit of, the Parties and their respective successors and permitted assigns. 
 Section 7.3     Expenses. Except as otherwise provided in this Agreement or any Related Agreement, each of the Parties shall
bear its own legal, investment banking, accounting and other costs and expenses in connection with the transactions contemplated hereby or thereby. 
 Section 7.4     Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the internal laws of the Commonwealth of Virginia, without giving effect to any choice of law or
conflict of law provisions or rule (whether of the Commonwealth of Virginia or any other jurisdiction) that would cause the application of the laws of any other jurisdiction other than the Commonwealth of Virginia. 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 7.5     WAIVER OF JURY TRIAL. EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
DISPUTE ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 Section 7.6    
Amendments; Modifications; Waivers. This Agreement may not be amended, supplemented or modified except by an agreement in writing that makes specific reference to this Agreement and that is signed by an authorized representative of each of
the Parties. 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 7.7     Entire Agreement. This Agreement and all Exhibits and Schedules hereto and the Related Agreements constitutes
the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, both written and oral, among the Parties with respect to the subject matter hereof. 
 Section 7.8     Specific Performance. The Parties acknowledge and agree that irreparable damage would occur if any of the
provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, each of the Parties agrees that, in the event of any breach of the provisions of this Agreement, the non- 

  

 15 

 
breaching Party, without prejudice to any rights to judicial relief it may otherwise have, shall be entitled to seek equitable relief, including injunction,
and to enforce specifically the terms and provisions of this Agreement. Each of the Parties (to the extent such Party is the breaching Party) further agrees that it will not oppose the granting of such relief on the basis that the non-breaching
Party has an adequate remedy at law. 
 Section 7.9     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 7.10     No Third-Party Beneficiaries. Nothing contained in this Agreement or in any
instrument or document executed by any Party in connection with the transactions contemplated hereby shall create any rights in, or be deemed to have been executed for the benefit of, any Person that is not a Party hereto or a successor or permitted
assign of such a Party. 
 Section 7.11     Interpretation; Construction. For purposes of this Agreement:
(a) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c) the words
“herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole. Unless the context otherwise requires, references herein (i) to Sections mean the Sections of this
Agreement and (ii) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and by this Agreement.
Titles and headings to articles or sections herein are inserted for the convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Agreement. Ambiguities, inconsistencies or conflicts in this
Agreement will not be strictly construed against either Party but will be resolved by applying the most reasonable interpretation under the circumstances, giving full consideration to the Parties’ intentions at the time this Agreement is
entered into and common practice in the industry. This Agreement shall be construed as if drafted jointly by all of the Parties. 
 Section
7.12     Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. This Agreement shall become
binding when all counterparts have been signed by the Parties and delivered to all of the Parties be electronic means or otherwise. 
 [Signature Page Follows] 
  

 16 

 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the day and year
first above written. 
  

			
	FBR CAPITAL MARKETS CORPORATION
		
	By:	 	/s/ Richard J. Hendrix
		 	 Name: Richard J. Hendrix
 Title:   President
and Chief Executive Officer

  

			
	FBR TRS HOLDINGS, INC.
		
	By:	 	/s/ J. Rock Tonkel, Jr.
		 	 Name: J. Rock Tonkel, Jr.
 Title:  
President and Chief Operating Officer

  

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

		
	By:	 	/s/ J. Rock Tonkel, Jr.
		 	 Name: J. Rock Tonkel, Jr.
 Title:  
President and Chief Operating Officer

 Signature Page to Stock Repurchase Agreement 
  

 17Exhibit 10.2

 EXHIBIT 10.2 
 TRANSITION SERVICES AGREEMENT 
 THIS TRANSITION SERVICES AGREEMENT, as amended, modified and in
effect from time to time (this “Agreement”), is made as of May 20, 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 18, 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 

  

 5 

 
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 

  

 6 

 
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. 
  

 10 

 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:	 	/s/ J. Rock Tonkel, Jr.
		 	 Name: J. Rock Tonkel, Jr.
 Title:  
President and Chief Operating Officer

  

			
	FBR CAPITAL MARKETS CORPORATION
		
	By:	 	/s/ Richard J. Hendrix
		 	 Name: Richard J. Hendrix
 Title:   President
and Chief Executive Officer

 Signature Page to Transition Services Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]