Stewart J. Paperin Grant of Phantom Stock

Stewart J. Paperin, a director at Armour Residential REIT, Inc., was granted 17,140 phantom shares under the company's Fourth Amended and Restated 2009 Stock Incentive Plan. These shares will vest over a five-year period, with installments vesting on May 20, August 20, November 20, and February 20, starting May 20, 2026, and concluding February 20, 2031. Upon vesting, each phantom share entitles the holder to one share of Armour common stock. The grant includes provisions for accelerated vesting upon death, disability, or change in control. Unvested shares are forfeited upon termination, unless specific retirement conditions are met. Holders are entitled to cash dividends equivalent to those on common stock, with an option to receive additional shares in lieu of cash. Each phantom stock unit is economically equivalent to one share of common stock.