Key Employee Plan

Exhibit 10.08


KEY EMPLOYEE INCENTIVE PLAN OF
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.


1. Purpose. The purpose of the Key Employee Incentive Plan of Friedman,
------- Billings, Ramsey Group, Inc. (the "Plan") is to promote the financial interests and growth of Friedman, Billings, Ramsey Group, Inc. (the "Company") and its subsidiaries, by (i) attracting and retaining employees possessing outstanding ability; and (ii) motivating such employees by means of performance-related incentives.


2. Definitions. The following definitions are applicable to the Plan:
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(a) "Board" means the Board of Directors of the Company.


(b) "Committee" means the Compensation Committee of the Board.


(c) "Participant", means each key employee of the Company and
its subsidiaries who is selected by the Committee to participate in the
Plan.


(d) "Plan Year" means the fiscal year of the Company.


3. Administration. The Plan shall be administered by the Committee. Subject
-------------- to the express provisions of the Plan, the Committee shall have authority to:


(i) select the Participants who will receive awards under the Plan;


(ii) determine the size of the awards to be made under the Plan subject to Section 6 hereof; and


(iii) establish from time to time regulations for the administration of the Plan, interpret the Plan, and make all determinations deemed necessary or advisable for the administration of the Plan.


4. Participation. Participants in the Plan shall be selected for each Plan
------------- Year by the Committee (upon the recommendation of the Company's chief executive officer) from those key employees of the Company and its subsidiaries who have contributed, or have the capacity for contributing, in a substantial measure to the successful performance of the Company and/or its subsidiaries and lines of business for that Plan Year. No such employee shall at any time have a right to be selected as a Participant in the Plan for any Plan Year, to be entitled automatically to an award, nor, having been selected as a Participant for one Plan Year, to be a Participant in any other Plan Year.


5. Performance Goals ...