Common use of Negotiability and Ownership Clause in Contracts

Negotiability and Ownership. The Warrants issued hereunder shall not, for a period of one year following the Effective Date, be sold, transferred, assigned or hypothecated by the holders thereof except (a) to persons who are directors, officers or affiliates of FBR who represent to the Company that they are “accredited investors” as that term is defined in Rule 501 under Regulation D of the Securities Act or (b) in the case of an individual, pursuant to such individual’s last will and testament or the laws of descent and distribution and, in any case, only in compliance with the Securities Act and Rule 2710 of the National Association of Securities Dealers, Inc. Manual, or any successor rule. For the purposes of this Section 5.03, the terms “officers,” and “partners” shall refer to those persons who are officers or partners, as the case may be, of FBR or any of its affiliates, as the case maybe, or who become officers or partners of FBR or any of its affiliates at any time before the expiration of the Warrants regardless of whether such persons are officers or partners of FBR or any of its affiliates at the time they sell, transfer, assign or hypothecate a Warrant. Any attempt to sell, transfer, assign or hypothecate in contravention of this Section shall be null and void.