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STATES</font></div>
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AND EXCHANGE COMMISSION</font></div>
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D.C.&#160;&#160;20549</font></div>
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8-K</font></div>
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REPORT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PURSUANT
TO SECTION 13 OR 15(d) OF THE</font></div>
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EXCHANGE ACT OF 1934</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
of Report (Date of earliest event reported) March 10, 2010</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman">DYNEX
CAPITAL, INC.</font></div>
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name of registrant as specified in its charter)</font></div>
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      Lake Brook Drive, Suite 100</font></div>
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      Allen, Virginia</font></div>
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telephone number, including area code</font></div>
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217-5800</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">N/A</font></div>
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name or former address, if changed since last report.)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font id="TAB1" style="MARGIN-LEFT: 144pt"></font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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<tr valign="top">
            <td style="WIDTH: 31px"><font style="DISPLAY: inline;" face="Wingdings">o</font></td>
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              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
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              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
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<tr valign="top">
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              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></div>
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    <div>
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<tr valign="top">
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              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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</font></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
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      </div>
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        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
5.02&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Departure
of Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">2009
Bonus Awards for Executive Officers</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>On March 10, 2010, the Compensation
Committee of the Board of Directors of Dynex Capital, Inc. (the &#8220;Company&#8221;)
approved payments under the ROAE Bonus Program for 2009 of $300,000 to Mr.
Thomas Akin, the Company&#8217;s Chief Executive Officer, $275,000 to Mr. Byron
Boston, the Company&#8217;s Chief Investment Officer, and $236,000 to Mr. Stephen
Benedetti, the Company&#8217;s Chief Financial Officer and Chief Operating
Officer.&#160;&#160;A portion of these bonus payments will be paid in shares of
the Company&#8217;s common stock. The Compensation Committee also approved an
additional discretionary cash bonus award in the amount of $50,000 to Mr.
Boston, in recognition of his performance and contributions to the Company
during 2009.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Employment
Agreement for Chief Executive Officer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>On March 11, 2010, the Company entered
into a new employment agreement with the Company&#8217;s Chief Executive Officer,
Thomas B. Akin (the &#8220;Agreement&#8221;), effective as of March 1, 2010.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Agreement is substantially similar
to Mr. Akin&#8217;s prior employment agreement that expired on February 5, 2010, and
provides for Mr.&#160;Akin&#8217;s continued employment as the Chief Executive Officer
of the Company for a term through March 1, 2011.&#160;&#160;Under the Agreement,
Mr.&#160;Akin will receive an annual base salary of $300,000, subject to annual
review by the Board of Directors of the Company (the &#8220;Board&#8221;), with the Board
being able to increase (but not decrease) the base salary based on Mr. Akin&#8217;s
performance in accordance with the Company&#8217;s regular policies and
procedures.&#160;&#160;Subject to certain limitations, Mr. Akin&#8217;s base salary
will be paid in shares of unrestricted common stock of the Company issued under
the Company&#8217;s stock incentive plan until the Company and Mr. Akin agree
otherwise.&#160;&#160;The number of shares of common stock to be paid to Mr.
Akin will be determined based on the fair market value of the common stock (as
defined in the applicable stock incentive plan) on the applicable payroll
date.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Under the Agreement, Mr. Akin will
continue to be located in San Francisco, California, but will travel to
Richmond, Virginia and other locations as necessary for the Company&#8217;s
business.&#160;&#160;The Company will reimburse Mr. Akin for reasonable travel
and lodging expenses incurred in the performance of his duties for the
Company.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Under the Agreement, Mr.&#160;Akin is
eligible to participate in the Company&#8217;s annual bonus program based on the
return on adjusted equity of the Company (the &#8220;ROAE Bonus&#8221;), and any other bonus
program for executives, subject to the terms of such bonus
programs.&#160;&#160;Mr. Akin is also eligible to participate in the employee
and executive benefit plans and programs implemented by the Company in which
other senior executives of the Company are eligible to participate, including
life, medical, dental, accidental and disability insurance plans and retirement,
deferred compensation and savings plans in accordance with the terms and
conditions of such plans.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Under the Agreement, if Mr.&#160;Akin
is terminated for any reason, he is entitled to payment of his base salary
through the date of his termination (to the extent not previously paid),
reimbursement for any business expenses incurred by Mr. Akin prior to his
termination and payment for any vacation time accrued by him as of the date of
his termination.&#160;&#160;Further, unless Mr. Akin is terminated for Cause (as
defined in the Agreement) and subject to certain limitations, if he executes a
general release in connection with his termination he will also be entitled to
the following: (1) the pro-rated portion of the ROAE Bonus that would have been
payable to him based on the achievement by the Company of performance goals for
that portion of time during the calendar year of the Company that he was
employed, payable at the time such bonus would have otherwise been paid; and (2)
any incentive stock awards awarded to him prior to his termination will become
immediately 100% vested and exercisable.</font></div>
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
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</font></div>
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Agreement, other than in his role as managing general partner of Talkot Capital
LLC, Mr. Akin agrees not to be employed by, render services for, engage in
business with or serve as an agent or consultant to any entity other than the
Company.&#160;&#160;The Agreement also provides for confidentiality obligations
during and following Mr. Akin&#8217;s employment and includes noncompetition and
nonsolicitation provisions that are effective during, and for one year following
termination of, his employment.&#160;&#160;If Mr. Akin breaches any of his
confidentiality, noncompetition or nonsolicitation obligations, he will forfeit
any unpaid amounts or benefits and be obligated to repay certain amounts or
benefits.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Agreement provides that all of its
provisions are to be construed so as to comply with the timing and form of
payment requirements of Section&#160;409A of the Internal Revenue Code of 1986,
as amended.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
foregoing description is a summary of the material terms of the Agreement and is
qualified in its entirety by reference to the Agreement itself, a copy of which
is attached hereto as Exhibit 10.6 and incorporated herein by
reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
9.01&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Financial
Statements and Exhibits.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)
Exhibits</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Exhibit
      No.</font></div>
              </td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
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      </font></td>
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      </font></td>
              <td align="left" valign="bottom" width="72%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
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      </font></td>
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      Agreement, effective as of March 1, 2010, between Dynex Capital, Inc. and
      Thomas B. Akin</font></div>
              </td>
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">
      <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
      <div style="TEXT-ALIGN: center">&#160;</div>
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to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><br>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
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              <td align="left" colspan="2" valign="top" width="2%"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">DYNEX
      CAPITAL, INC.</font></td>
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              <td align="left" valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td align="left" valign="top" width="32%">&#160;</td>
              <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td align="left" valign="top" width="35%">&#160;</td>
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              <td align="left" valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
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              <td align="left" valign="top" width="35%">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Date:</font></div>
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              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline">March
      16, 2010</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:</font></div>
              </td>
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      Stephen J. Benedetti<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font>&#160;&#160;</font></font></div>
              </td>
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              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="32%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Stephen
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              </td>
            </tr><tr>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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      </font></td>
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      Officer</font></div>
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body.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C.  20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported) March 10, 2010
DYNEX
CAPITAL, INC.
(Exact
name of registrant as specified in its charter)
Virginia
(State
      or other jurisdiction
of
      incorporation)
1-9819
(Commission
      File Number)
52-1549373
(IRS
      Employer
Identification
      No.)
4991
      Lake Brook Drive, Suite 100
Glen
      Allen, Virginia
(Address
      of principal executive offices)
23060
(Zip
      Code)
Registrant's
telephone number, including area code
(804)
217-5800
N/A
(Former
name or former address, if changed since last report.)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
o
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
o
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
o
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
Item
5.02                 Departure
of Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers.
2009
Bonus Awards for Executive Officers
On March 10, 2010, the Compensation
Committee of the Board of Directors of Dynex Capital, Inc. (the "Company")
approved payments under the ROAE Bonus Program for 2009 of $300,000 to Mr.
Thomas Akin, the Company's Chief Executive Officer, $275,000 to Mr. Byron
Boston, the Company's Chief Investment Officer, and $236,000 to Mr. Stephen
Benedetti, the Company's Chief Financial Officer and Chief Operating
Officer.  A portion of these bonus payments will be paid in shares of
the Company's common stock. The Compensation Committee also approved an
additional discretionary cash bonus award in the amount of $50,000 to Mr.
Boston, in recognition of his performance and contributions to the Company
during 2009.
Employment
Agreement for Chief Executive Officer
On March 11, 2010, the Company entered
into a new employment agreement with the Company's Chief Executive Officer,
Thomas B. Akin (the "Agreement"), effective as of March 1, 2010.
The Agreement is substantially similar
to Mr. Akin's prior employment agreement that expired on February 5, 2010, and
provides for Mr. Akin's continued employment as the Chief Executive Officer
of the Company for a term through March 1, 2011.  Under the Agreement,
Mr. Akin will receive an annual base salary of $300,000, subject to annual
review by the Board of Directors of the Company (the "Board"), with the Board
being able to increase (but not decrease) the base salary based on Mr. Akin's
performance in accordance with the Company's regular policies and
procedures.  Subject to certain limitations, Mr. Akin's base salary
will be paid in shares of unrestricted common stock of the Company issued under
the Company's stock incentive plan until the Company and Mr. Akin agree
otherwise.  The number of shares of common stock to be paid to Mr.
Akin will be determined based on the fair market value of the common stock (as
defined in the applicable stock incentive plan) on the applicable payroll
date.
Under the Agreement, Mr. Akin will
continue to be located in San Francisco, California, but will travel to
Richmond, Virginia and other locations as necessary for the Company's
business.  The Company will reimburse Mr. Akin for reasonable travel
and lodging expenses incurred in the performance of his duties for the
Company.
Under the Agreement, Mr. Akin is
eligible to participate in the Company's annual bonus program based on the
return on adjusted equity of the Company (the "ROAE Bonus"), and any other bonus
program for executives, subject to the terms of such bonus
programs.  Mr. Akin is also eligible to participate in the employee
and executive benefit plans and programs implemented by the Company in which
other senior executives of the Company are eligible to participate, including
life, medical, dental, accidental and disability insurance plans and retirement,
deferred compensation and savings plans in accordance with the terms and
conditions of such plans.
Under the Agreement, if Mr. Akin
is terminated for any reason, he is entitled to payment of his base salary
through the date of his termination (to the extent not previously paid),
reimbursement for any business expenses incurred by Mr. Akin prior to his
termination and payment for any vacation time accrued by him as of the date of
his termination.  Further, unless Mr. Akin is terminated for Cause (as
defined in the Agreement) and subject to certain limitations, if he executes a
general release in connection with his termination he will also be entitled to
the following: (1) the pro-rated portion of the ROAE Bonus that would have been
payable to him based on the achievement by the Company of performance goals for
that portion of time during the calendar year of the Company that he was
employed, payable at the time such bonus would have otherwise been paid; and (2)
any incentive stock awards awarded to him prior to his termination will become
immediately 100% vested and exercisable.
Under the
Agreement, other than in his role as managing general partner of Talkot Capital
LLC, Mr. Akin agrees not to be employed by, render services for, engage in
business with or serve as an agent or consultant to any entity other than the
Company.  The Agreement also provides for confidentiality obligations
during and following Mr. Akin's employment and includes noncompetition and
nonsolicitation provisions that are effective during, and for one year following
termination of, his employment.  If Mr. Akin breaches any of his
confidentiality, noncompetition or nonsolicitation obligations, he will forfeit
any unpaid amounts or benefits and be obligated to repay certain amounts or
benefits.
The Agreement provides that all of its
provisions are to be construed so as to comply with the timing and form of
payment requirements of Section 409A of the Internal Revenue Code of 1986,
as amended.
The
foregoing description is a summary of the material terms of the Agreement and is
qualified in its entirety by reference to the Agreement itself, a copy of which
is attached hereto as Exhibit 10.6 and incorporated herein by
reference.
Item
9.01                      Financial
Statements and Exhibits.
(d)
Exhibits
Exhibit
      No.
Description
10.6
Employment
      Agreement, effective as of March 1, 2010, between Dynex Capital, Inc. and
      Thomas B. Akin
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
DYNEX
      CAPITAL, INC.
Date:
March
      16, 2010
By:
/s/
      Stephen J. Benedetti
Stephen
      J. Benedetti
Executive
      Vice President, Chief Operating Officer and Chief Financial
      Officer