An engine brake rocker arm assembly is operable in an engine drive mode and an engine braking mode and selectively opens first and second exhaust valves. The engine brake rocker arm assembly includes an exhaust rocker arm configured to rotate about a rocker shaft, an engine brake capsule assembly movable between (i) a locked position configured to perform an engine braking operation, and (ii) an unlocked position that does not perform the engine braking operation, and a hydraulically controlled actuator assembly configured to selectively move the engine brake capsule assembly between the first and second positions.