Document:

Letter Agreement

 Exhibit 10.20 
 SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL 

TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS 

BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE 

TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH FIVE ASTERISKS (*****). 

ArcelorMittal Chicago 
 Law Department

 

 

 May 7, 2008 
 Sun Coke Company 
 Landmark Center, Suite N-600 

1111 Northshore Drive 
 Knoxville, TN 37919

  

			
	Attention:	  	Mr. Mark McCormick
		
	Re:	  	Sale of the Sparrows Point Business

 Dear
Mr. McCormick: 
 We are pleased to inform you that pursuant to the Purchase and Sale agreement (the “Purchase and
Sale Agreement”), dated as of March 20, 2008, by and among (i) ArcelorMittal USA Inc. (f/k/a Mittal Steel USA Inc.) and certain of its affiliates, (ii) Joseph G. Krauss, solely in his capacity as the divestiture trustee appointed
by the United States District Court for the District of Columbia pursuant to the May 23, 2007 Final Judgment entered by that court, (iii) GAO Severstal (a Russian joint stock company) (“Severstal”), (iv) Severstal Sparrows
Point Holding LLC (f/k/a Severstal Sparrows Point Holding Corp.) (“Severstal Holding”) and (v) SSP Railroad Holding LLC, Severstal Holding will acquire all of the membership interests of ISG Sparrows Point LLC (“ISG Sparrows
Point”) and related railroad, intellectual property and other assets (the “Sparrows Point Business”), including the Sparrows Point Steel Mill (the “Mill”). 

Due to the nature of the transaction, certain contracts that relate to the Sparrows Point Business, including the contracts with
affiliates of Sun Coke set forth below (such contracts with affiliates of Sun Coke are hereinafter referred to as the “Coke Supply Contracts”), relate to both the assets being acquired by Severstal and the assets being retained by
ArcelorMittal USA Inc. and its affiliates (collectively, “ArcelorMittal”). 

 1. Coke Purchase Agreement, dated October 28, 2003, by and between ISG Cleveland
Inc., ISG Indiana Harbor Inc., ISG Sparrows Point Inc. and Haverhill North Coke Company (“Haverhill”), as amended on December 5, 2003 (the “Haverhill Contract”) 

2. Amended and Restated Coke Purchase Agreement, dated October 28, 2003, by and between ISG Cleveland Inc., ISG Indiana Harbor
Inc., ISG Sparrows Point Inc. and Jewell Coke Company, L.P. (“Jewell”), as amended on December 5, 2003 the “Jewell Contract”) 
 It is the intention of ArcelorMittal and Severstal or its designated affiliate to enter into a subcontracting arrangement such that, following the closing date of the Purchase and Sale Agreement,
ArcelorMittal or its designated affiliate will deliver to Severstal or its designated affiliate certain goods (the “Subcontracted Goods”) acquired by ArcelorMittal pursuant to the Coke Supply Contracts, subject to the terms of the
subcontracting agreement attached hereto as Exhibit A (the “Subcontract”). (The parties hereto acknowledge that such Subcontract does not modify or amend, and is not intended to modify or amend, either the Jewell Contract or the Haverhill
Contract.) Capitalized terms used but not otherwise defined in this letter shall have the meaning ascribed to such terms in the Haverhill Contract or the Jewell Contract, as applicable. 

By their execution of this letter where indicated and return of the same to ArcelorMittal USA Inc., attention Marc Jeske, Associate
General Counsel (via facsimile at (312) 899-3504 or electronic mail to marc.jeske@mittalsteel.com) and effective upon the closing of the sale of the Sparrows Point Business as described above, ArcelorMittal USA Inc., ISG Sparrows Point,
Haverhill and Jewell hereby: 
 (i) acknowledge and agree that, effective as of the consummation of the sale of
the Sparrows Point Business pursuant to the Purchase and Sale Agreement, ISO Sparrows Point shall withdraw from the Coke Supply Contracts, shall relinquish all claims, rights or interests in or under the Coke Supply Contracts and shall be released
and discharged from all liabilities and obligations under the Coke Supply Contracts; provided, however, that (A) for purposes of the Coke Supply Contracts, “Purchasers’ Requirements” shall be determined as if the Mill is owned by
an Affiliate of ArcelorMittal), and (B) ArcelorMittal USA Inc. shall, prior to the consummation of such sale and as a condition thereof, provide a guaranty in a form substantially identical to Exhibit A hereto guarantying the obligations of ISG
Cleveland Inc. and ISG Indiana Harbor Inc. under the Coke Supply Contracts; 
 (ii) consent to the Subcontract
and to ArcelorMittal’s entry into the Subcontract and to the provision of Subcontracted Goods by ArcelorMittal or its designated affiliate to Severstal or its designated affiliate pursuant to the terms of the Subcontract; 

(iii) agree and acknowledge that none of (A) the consummation of the sale of the Sparrows Point Business to Severstal
and its affiliates pursuant to the Purchase and Sale Agreement, (B) the entry into the Subcontract by ArcelorMittal and Severstal or their respective designated affiliates and (C) the performance of the Subcontract, will be

 
deemed a breach of, or default under, any change of control provision, anti-assignment provision or any other provision of the Coke Supply Contracts or applicable law and will not cause the
termination of, or give rise to the right to terminate under, or otherwise affect the Coke Supply Contracts; 

(iv) agree and acknowledge that the Coke Supply Contracts are in full force and effect according to their respective terms
and that no party to either Coke Supply Contract is in breach of the Coke Supply Contracts; 
 (v) agree and
acknowledge that Severstal or its designated affiliate are intended third party beneficiaries of Articles V, IX and X of the Haverhill Contract and Articles V and VI of the Jewell Contract, in each case, with respect to the Subcontracted Goods and
that (i) each of Severstal or its designated affiliate may directly enforce the rights provided by such Articles with respect to the quality of such Subcontracted Goods and (ii) Haverhill and Jewell, on the one hand, and Severstal or its
designated affiliate, on the other, shall be subject the rights and obligations in respect of Seller Force Majeure Event(s) and Purchaser Force Majeure Event(s) (in the case of the Haverhill Contract), and Force Majeure Events (in the case of the
Jewell Contract); and 
 (vi) agree and acknowledge for the avoidance of doubt that neither Severstal nor its
designated affiliate shall have any rights in respect of (A) participating in the Coal Committee, disputes arising out of Coal Committee matters or activities, selecting Coals comprising any Coal Blend; (B) designating Delivery Points in
respect of Coke shipments other than to Sparrows Point, MD; (C) stockpiling Coke at the coke plant owned and operated by Haverhill or otherwise; (D) any option to purchase Breeze arising under Section 3.10 of the Haverhill Contract;
(E) Section 8.1 or Section 8.2 of the Haverhill Contract; or (F) the determination of the amount of New Governmental Credits pursuant to Section 3.11 of the Haverhill Contract; provided, however, that Severstal or its
designated affiliate may instruct ArcelorMittal to designate, and upon such instruction ArcelorMittal shall so designate, Coke shipments for delivery to any other facility or facilities owned or operated by Severstal or one of its affiliates if and
only to the extent that Jewell and Haverhill are permitted to deliver such Coke shipments to such locations after taking into account contractual arrangements in respect of such Coke shipments; provided, further, Jewell and Haverhill will use
commercially reasonable efforts to enter into contractual arrangements enabling the delivery of such Coke shipments to such other locations, and Severstal shall reimburse Jewell and Haverhill for the reasonable out of pocket expenses incurred by
them in connection with entering into such arrangements. 
 Please send a courtesy copy of this letter when executed to Mayer
Brown LLP, attention Jason Wagenmaker (via facsimile at (312) 706-8371 or electronic mail to jwagenmaker@mayerbrown.com). If possible, please also send a hard copy by U.S. mail or overnight courier to Mayer Brown LLP, ATTN: Jason Wagenmaker, 71
S. Wacker, Chicago, IL 60606-4637). 
 * * * * * * * 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

					
	ACKNOWLEDGED AND AGREED
	this 7th day of May, 2008:
	
	ARCELORMITTAL USA INC.
		
	By:	 	 /s/ John L. Brett

		 	Name:	 	John L. Brett
		 	Title:	 	Vice President
	
	 ACKNOWLEDGED AND AGREED
 this 7th day of May, 2008:

	
	HAVERHILL NORTH COKE COMPANY
		
	By:	 	 /s/ Mark McCormick

		 	Name:	 	Mark McCormick
		 	Title:	 	Secretary
	
	 ACKNOWLEDGED AND AGREED
 this 7th day of May, 2008:

	
	JEWELL COKE COMPANY, L.P.
		
	By:	 	 /s/ Mark McCormick

		 	Name:	 	Mark McCormick
		 	Title:	 	Secretary
	
	 ACKNOWLEDGED AND AGREED
 this 7th day of May, 2008:

	
	ISG SPARROWS POINT LLC
		
	By:	 	 /s/ John L. Brett

		 	Name:	 	John L. Brett
		 	Title:	 	Vice President

 EXHIBIT A 
 SERVICE PROVISION AGREEMENT 
 This SERVICE PROVISION AGREEMENT (this
“Agreement”), dated as of May 7, 2008, is made by and between ISG Sparrows Point LLC, a Delaware limited liability company (the name of which will be changed to Severstal Sparrows Point, LLC pursuant to the Purchase Agreement)
(“Recipient”), and ArcelorMittal Cleveland Inc., a corporation formed under the laws of Delaware (“Provider”). Recipient and Provider are sometimes hereinafter referred to as a “Party” and collectively as the
“Parties”. 
 WHEREAS, Provider and certain of its affiliates and OAO Severstal, a Russian joint stock company, and
certain of its affiliates have entered into a Purchase and Sale Agreement, dated as of March 20, 2008 (the “Purchase Agreement”), providing for, among other things, the sale of the membership interests of Recipient to Severstal
Sparrows Point Holding LLC (“Steel Purchaser”); 
 WHEREAS, pursuant to the Purchase Agreement, Recipient is to
receive, effective as of the closing date of the Purchase Agreement, (i) blast furnace coke from Haverhill North Coke Company (“Haverhill”) delivered pursuant to the Coke Purchase Agreement, dated October 28, 2003 by and between
ISG Cleveland Inc., ISG Indiana Harbor Inc., 1SG Sparrows Point Inc. and Haverhill, as amended on December 5, 2003 (the “Haverhill Agreement”) in an amount equal to 16,929 net tons per calendar month (the “Base Haverhill Coke
Tonnage”) and (ii) blast furnace coke from Jewell Coke Company, L.P. (“Jewell”) delivered pursuant to the Amended and Restated Coke Purchase Agreement dated October 28, 2003, by and between ISG Cleveland Inc., 1SG Indiana
Harbor Inc., ISG Sparrows Point Inc. and Jewell, as amended on December 5, 2003 (the “Jewell Agreement” and, together with the Haverhill Agreement, the “Coke Supply Agreements”) in an amount equal to 2,988 net tons per
calendar month (the “Base Jewell Coke Tonnage and, together with the Base Haverhill Coke Tonnage, the “Base SP Coke Tonnage”); and 
 WHEREAS, the Parties desire to enter into this Agreement to facilitate the delivery of Haverhill Coke and Jewell Coke (in each case as defined below) to Recipient. 

NOW, THEREFORE, the Parties hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 

All capitalized terms used herein and not defined herein shall have the meanings assigned to them in the Purchase Agreement. 

  
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 ARTICLE II 
 AGREEMENT TO PROVIDE THE SERVICE 
 Section 2.01 Provision of Service.

 (i) On the terms and subject to the conditions contained herein, Provider shall designate Recipient as the
recipient of (i) blast furnace coke from Haverhill (“Haverhill Coke”) in an amount equal to the Base Haverhill Coke Tonnage (subject to adjustment as provided in this Section 101) and (ii) blast furnace coke from Jewel
(“Jewell Coke”, and together with the Haverhill Coke, the “Sparrows Point Coke”) in an amount equal to the Base Jewell Coke Tonnage (subject to adjustment as provided in this Section 2.01), in each case pursuant to the
applicable Coke Supply Agreement, beginning with shipments occurring on or after the closing date of the Purchase Agreement (the foregoing obligation of Provider to designate Recipient as the recipient of Sparrows Point Coke is hereinafter referred
to as the “Service”). 
 (ii) Provider and Recipient acknowledge that (a) Jewell is expected to
deliver 58,333 net tons of blast furnace coke per month (the “Expected Jewell Tonnage”) to Recipient (but is only obligated to deliver 690,000 net tons of blast furnace coke per calendar year), Provider and Provider’s affiliates,
collectively, pursuant to the Jewell Agreement; and (b) Haverhill is expected to deliver 45,833 net tons of blast furnace coke per month (but is only obligated to delver 539,000 tons of coke per calendar year based upon the “Base Coal
Blend” as defined in the Haverhill Agreement), (together with the Minimum Jewell Tonnage the “Expected Combined Coke Tonnage” or “ECCT”) to Recipient, Provider and Provider’s affiliates, collectively, pursuant to the
Haverhill Agreement. In each calendar month during the term of this Agreement, in the event the Expected Combined Coke Tonnage is not met through no fault of Provider and for reason(s) beyond Provider’s control, the amount of Haverhill Coke and
Jewel Coke to be designated for Recipient during such month shall be automatically adjusted according to the following formulas: 
  

											
	Adjusted Haverhill Coke Tonnage	 	=	  	(ECCT - Amount of Coke Shortfall)	  	X  
	  	Base Haverhill Coke Tonnage	  	
		 		  	ECCT	  	  		  	

  

											
	Adjusted Jewel Coke Tonnage	 	=	  	(ECCT - Amount of Coke Shortfall)	  	X  
	  	Base Jewell Coke Tonnage	  	
		 		  	ECCT	  	  		  	

 For purposes of the foregoing formulas, the “Amount of Coke Shortfall” shall mean the
amount (in net tons), if any, by which the Expected Combined Coke Tonnage during the prior calendar month exceeds the amount of Haverhill Coke and Jewell Coke actually received by Recipient, Provider and Provider’s affiliates, taken as a whole.
The result of the foregoing formulas is hereinafter referred to as the “Adjusted Haverhill Coke Tonnage” or the “Adjusted Jewell Coke Tonnage”, as applicable. 

(iii) Provider and Recipient acknowledge that (a) the Sparrows Point Coke will be transported via trains that
typically have a maximum capacity of approximately 5,600 

  
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net tons of blast furnace coke (the “Maximum Train Capacity”) and (b) the Sparrows Point Coke is most cost-effectively transported in bulk amounts equal to the Maximum Train
Capacity. At least ten (10) days prior to the first day of any month, Provider may notify Recipient of an anticipated increase or decrease in the Expected Haverhill Coke Tonnage and/or the Adjusted Jewell Coke Tonnage to be designated for
delivery to Recipient during such month, with the amount of each such increase or decrease not to exceed 2,750 net tons unless otherwise mutually agreed by Provider and Recipient (each, an “Allowable Adjustment”), provided, however, that
the amount of each Allowable Adjustment actually taken in a month shall be subtracted from, or added to, as applicable, the Adjusted Haverhill Coke Tonnage or the Adjusted Jewell Coke Tonnage, as applicable, during the following calendar month, such
that Recipient shall on average be designated as the recipient of the Adjusted Haverhill Coke Tonnage and the Adjusted Jewell Coke Tonnage on a monthly basis. For the avoidance of doubt, (i) the Allowable Adjustment for any particular month
shall apply separately and in its entirety to the Adjusted Haverhill Coke Tonnage and the Adjusted Jewell Coke Tonnage for such month and (ii) any Adjusted Haverhill Coke Tonnage or Adjusted Jewell Coke Tonnage subject to an Allowable
Adjustment from a prior month may be the subject of further Allowable Adjustments in subsequent months in accordance with the foregoing provisions. 
 (iv) Upon delivery of the Sparrows Point Coke to the Delivery Point (as defined in the Coke Supply Agreements) relating to the Sparrows Point facility, (i) Recipient shall notify Provider in writing
of the occurrence of such delivery, (ii) Recipient shall pay Provider in cash all amounts owed by Provider for the Sparrows Point Coke pursuant to the applicable Coke Supply Agreement and (iii) Recipient shall take title to the Sparrows
Point Coke. 
 (v) Recipient shall bear all risk of loss and other liabilities with respect to the Sparrows Point
Coke, 
 (vi) In no event shall the scope of the Service required to be performed hereunder exceed that described
in Section 2.01(i). 
 Section 2.02 Payment. Any payment not made by Recipient when due pursuant to the terms of
this Agreement shall be subject to interest from the date on which such payment was due through the date on which such payment is made at a rate of ***** per month (but not to exceed the maximum rate allowable by law). In addition to the charges for
the Sparrows Point Coke, Recipient shall pay to Provider amounts equal to any out-of-pocket fees, costs, or expenses or reasonable internal costs incurred by Provider or its Affiliates in connection with Recipient’s non-payment or other failure
to perform under this Agreement. 
 Section 2.02 Disclaimer of Warranty. RECIPIENT ACKNOWLEDGES THAT PROVIDER IS ENTERING
INTO THIS AGREEMENT FOLLOWING THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED IN THE PURCHASE AGREEMENT. THE PROVIDER MAKES ABSOLUTELY NO REPRESENTATION OR WARRANTY REGARDING THE SPARROWS POINT COKE. THE SPARROWS POINT COKE TO BE PROVIDED BY THE
PROVIDER UNDER THIS AGREEMENT IS FURNISHED AS IS, WHERE IS, AND WITHOUT WARRANTY OF ANY KIND. 

  
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PROVIDER DISCLAIMS ALL WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT, ADEQUACY, OR
COMPLIANCE WITH ANY LAW, DOMESTIC OR FOREIGN. 
 Section 2.04 Enforcement of Rights. Recipient acknowledges that pursuant
to the Letter Agreement by and between ArcelorMittal USA Inc., Haverhill and Jewell dated as of May 7, 2008 (the “Letter Agreement”) it has been recognized as a third party beneficiary of the warranties issued under each of the Coke
Supply Agreements. It shall be Recipient’s obligation to enforce such warranties on its own behalf and Provider will have no obligation with respect thereto. 
 Section 2.05 Taxes. In addition to the fees and other amounts payable by Recipient to Provider under this Agreement, Recipient shall pay any applicable taxes or assessments, including any sales,
use or excise taxes, that may be levied or assessed by any government or other taxing authority in connection with this Agreement or the Sparrows Point Coke. 
 Section 2.06 Use of Sparrows Point Coke. Recipient shall not resell or make available the Sparrows Point Coke to any third party other than any of Recipient’s affiliates. Recipient and its
affiliates shall use the Sparrows Point Coke only in Recipient’s operation of the business of the facility located at 1430 Sparrows Point Blvd., Sparrows Point, Maryland 21219-1014 or in the operation of the businesses of Recipient’s
affiliates, it being understood that none of Jewell, Haverhill or Provider shall have any obligation to designate Sparrows Point Coke for delivery to any facility other than 1430 Sparrows Point Blvd., Sparrows Point, Maryland 21219-1014 unless
otherwise agreed by Recipient and Jewell or Haverhill, as applicable. Notwithstanding the foregoing, Recipient may instruct Provider to designate, and upon such instruction Provider shall so designate, Sparrows Point Coke for delivery to any
facility owned or operated by Recipient or its affiliates if Jewell or Haverhill, as applicable, agrees to such designation. 

Section 2.07 No Set-Off. Recipient’s obligation to pay fees or make any other required payments under this Agreement shall
not be subject to any right of offset, set-off, deduction or counterclaim, however arising. 
 Section 2.08 Relationship of
Parties. Provider is an independent contractor and not an agent, partner, employee or joint venturer of Recipient. Employees or agents of Provider providing the Service to Recipient shall not be deemed employees or agents of Recipient. Provider
shall retain the exclusive right of control with respect to its employees and agents. 
 ARTICLE III 

TERM OF SERVICE 
 Section 3.01 Term. The provision of the Service shall commence on the date of this Agreement and shall terminate upon the earlier of (i) with respect to each Coke Supply Agreement, the date
upon which such Coke Supply Agreement terminates, (ii) the date upon which this Agreement is terminated pursuant to Section 3.02 or Section 3.03 and (iii) with respect to each Coke Supply Agreement, the date upon which such Coke
Supply Agreement is 

  
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divided, modified or replicated pursuant to the provisions of Section 3.6(d) of the Purchase Agreement (the “Term”). Upon the expiration of the Term, all rights of Recipient to the
Sparrows Point Coke pursuant to this Agreement, the Purchase Agreement or otherwise shall terminate. 
 Section 3.02 Breach
of Agreement. If Recipient shall breach any of its obligations under this Agreement, including any failure to make any payment when due, and Recipient does not cure such breach within ten (10) days after the occurrence of such breach,
Provider may terminate this Agreement immediately upon written notice to Recipient. 
 Section 3.03 Insolvency. Provider
may terminate this Agreement immediately upon written notice to Recipient in the event that Recipient (a) ceases to do business in the normal course, (b) becomes or is declared insolvent or bankrupt, (c) is the subject of any
proceeding related to its liquidation or insolvency (whether voluntary or involuntary) which (in the event of an involuntary proceeding) is not dismissed within ninety (90) calendar days or (d) makes an assignment for the benefit of
creditors. 
 Section 3.04 Effect of Termination. Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07 and 2.08, this
Section 3.04 and Article IV shall survive any termination of this Agreement. 
 ARTICLE IV 

MISCELLANEOUS 
 Section 4.01 Exculpation. Provider and each of its Affiliates, employees, agents, officers and directors (each a “Provider Party”) shall have no liability for any claims, demands,
complaints, liabilities, losses, damages, costs and expenses (collectively, “Losses”) arising from or relating to the provision of the Service or the Sparrows Point Coke except for Losses that are proximately caused by the willful
misconduct of such Provider Party. Provider hereby agrees to indemnify, defend and hold harmless Recipient and its Affiliates, employees, agents, officers and directors from and against any and all Losses arising from or relating to the willful
misconduct or gross negligence of any Provider Indemnitee in performing its obligations under this Agreement. 
 Section 4.02
Limit of Liability; Consequential and Other Damages. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY CONTAINED IN THIS AGREEMENT OR IN THE PURCHASE AGREEMENT, IN NO EVENT SHALL PROVIDER OR ANY PROVIDER PARTY INCUR OR OTHERWISE BE LIABLE TO
RECIPIENT OR ANY OTHER PERSON UNDER OR IN CONNECTION WITH THIS AGREEMENT FOR AN AGGREGATE AMOUNT IN EXCESS OF THE FEES ACTUALLY PAID BY RECIPIENT TO PROVIDER UNDER THIS AGREEMENT. IN NO EVENT SHALL PROVIDER OR ANY PROVIDER PARTY BE LIABLE, WHETHER
IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY), OR OTHERWISE, FOR ANY SPECIAL, INDIRECT, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL DAMAGES WHATSOEVER, WHICH IN ANY WAY ARISE OUT OF, RELATE TO, OR ARE A CONSEQUENCE OF, ITS PERFORMANCE OR
NONPERFORMANCE HEREUNDER, OR THE PROVISION OF OR FAILURE TO PROVIDE THE SERVICE OR ANY CONDITION OF ANY SPARROWS POINT COKE. 

  
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 Section 4.03 No Recourse Against Covered Persons. Notwithstanding anything else to
the contrary contained in this Agreement or in the Purchase Agreement, Recipient expressly acknowledges and agrees that in no event shall any director, officer, manager, representative, agent or similar person of Provider or any of its Affiliates
have any personal liability with respect to Provider’s obligations hereunder. 
 Section 4.04 No Liability. None of
Provider or any of its Affiliates shall have any liability for the delay or failure of Haverhill or Jewell to perform under the Coke Supply Agreements. 
 ARTICLE V 
 MISCELLANEOUS 

Section 5.01 No Third Party Beneficiaries. Except as expressly provided in Article IV, this Agreement is for the sole benefit of
the Parties and their permitted assigns and nothing herein expressed or implied shall give or be construed to give to any Person, other than the Parties and such permitted assigns, any legal or equitable rights hereunder, whether as third party
beneficiaries or otherwise. 
 Section 5.02 Amendments; Assignment. No amendment to this Agreement shall be effective
unless it shall be in writing and signed by each Party. Neither this Agreement nor any of the rights and obligations of a Party hereunder shall be assignable or transferable by such Party without the prior written consent of the other Party. Any
attempted assignment that does not comply with the terms of this Section 5.02 shall be null and void. 
 Section 5.03
Waivers. No failure or delay of either Party in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Parties hereunder are cumulative and are not exclusive of any rights or remedies which they
would otherwise have at law or in equity. Any waiver of any provision of this Agreement must be effected pursuant to a writing executed by the waiving Party. 
 Section 5.04 Notices. All notices or other communications required or permitted to be given hereunder shall be in writing and shall be delivered by hand orsent by facsimile or sent, postage
prepaid, by registered, certified or express mail or reputable overnight courier service and shall be deemed given when so delivered by hand or facsimile, or if mailed or sent by courier service, three (3) days after mailing (one
(1) business day in the case of express mail or overnight courier service), as follows (or at such other address for a Party as shall be specified by notice given in accordance with this Section 5M4): 

 

	 	(i)	if to Provider, 

 ArcelorMittal
USA Inc. 
 19th Floor 
 One South Dearborn Street 

  
 6 

 
Chicago, Illinois 60603 
 Attention: General Counsel 

Facsimile: (312) 899-3504 
  

	 	(ii)	if to Recipient, 

 Severstal
North America, Inc. 
 14661 Rotunda Drive 
 Dearborn, MI 48120 
 Attention: Vice President, Purchasing and Transportation

 With a copy to: 
 Severstal Sparrows Point LLC 
 1430 Sparrows Point Blvd. 

Sparrows Point, MD 21219 
 Attention: Manager, Raw Material Purchasing 
 and 

Severstal North America, Inc. 
 14661 Rotunda Drive 
 Dearborn, MI 48120 

Attention: Secretary and General Counsel 
 Section 5.05 Headings; Annex; Interpretation. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this
Agreement. When a reference is made in this Agreement to an Article or Section, such reference shall be to an Article or Section of this Agreement unless otherwise indicated. For all purposes hereof, the terms “include” and
“including” shall be deemed followed by the words “without limitation”. The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement. Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute
as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto
and instruments incorporated therein. References to a Person are also to its permitted successors and permitted assigns and, in the case of an individual, to his or her heirs and estate, as applicable. 

Section 5.06 Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and
the same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other Parties. 
 Section 5.07 Entire Agreement. This Agreement, together with the Letter Agreement, contain the entire agreement and understanding between the Parties with respect to the subject

  
 7 

 
matter hereof and supersede all prior agreements and understandings relating to such subject matter. 
 Section 5.08 Severability. If any provision of this Agreement or the application of any such provision to any Person or circumstance shall be held invalid, illegal or unenforceable in any respect
by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision hereof. 
 Section 5.09 Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be construed, performed and enforced in accordance with, and governed by, the laws of the State of New York
(without giving effect to the principles of conflicts of laws thereof), except to the extent that the laws of such State are superseded by applicable federal law. The Parties irrevocably elect, as the sole judicial forum for the adjudication of any
matters arising under or in connection with this Agreement, and consent to the jurisdiction of, any state or federal court having competent jurisdiction over the Borough of Manhattan, New York, New York. Each of the Parties hereby waives any right
to trial by jury in any action or proceeding relating to this Agreement or any actual or proposed transaction or other matter contemplated in or relating to this Agreement. 
 [SIGNATURE PAGE FOLLOWS] 

  
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 IN WITNESS WHEREOF, the Parties have executed this Service Provision Agreement as of the
date first written above. 
  

			
	ISG SPARROWS POINT LLC
		
	By:	 	  

		 	Name:
		 	Title:
	
	ARCELORMITTAL CLEVELAND INC.
		
	By:	 	  

		 	Name:
		 	Title:

  
 9 

 EXHIBIT B 
 GUARANTY 
 THIS GUARANTY, dated as of [Insert],
(“Guaranty”), is made by ArcelorMittal USA Inc., a Delaware corporation (“Guarantor”), for the benefit of Haverhill North Coke Company, a Delaware corporation (“Haverhill”), and Jewell Coke Company, L.P., a Delaware
Limited Partnership (“Jewell”). 
 Recitals 

A. This Guaranty is made pursuant to the following agreements: 
 (i) Coke Purchase Agreement, dated October 28, 2003, by and between ISG Cleveland Inc. and ISG Indiana Harbor Inc., (collectively, the “Guarantor’s Affiliates”) and Haverhill as
amended on December 5, 2003 and on May 7, 2008 (the “Haverhill Contract”) 
 (ii) Amended and Restated Coke
Purchase Agreement, dated October 28, 2003, by and between the Guarantor’s Affiliates and Jewell, as amended on December 5, 2003 and on May 7, 2008 (the “Jewell Contract”) 

B. This Guaranty is made for the benefit of Haverhill and Jewell to guarantee the performance by each of the Guarantor’s Affiliates
of their respective obligations under, as applicable, the Haverhill Contract and the Jewell Contract (such applicable obligations are referred to herein are collectively referred to as the “Guaranteed Obligations”). 

C. It is a condition to Haverhill and Jewell approving a certain subcontracting arrangement with respect to Guarantor’s sale of its
Sparrows Point Business as particularly set forth in the letter agreement dated concurrently herewith by and among Guarantor, Haverhill and Jewell (the “Consent”) that Guarantor shall have executed and delivered this Guaranty. 

D. Guarantor will obtain benefits from Haverhill and Jewell approving such subcontracting arrangement and, accordingly, desires to
execute this Guaranty in order to induce Jewell and Haverhill to execute the Consent. 
 Guaranty 

NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to the Guarantor, the receipt and sufficiency of which are
hereby acknowledged, Guarantor hereby covenants to Jewell and Haverhill as follows: 
 1. Guarantor guarantees to Haverhill and
Jewell the full performance of all Guaranteed Obligations. Guarantor understands, agrees and confirms that Haverhill and Jewell may enforce this Guaranty against the Guarantor without first proceeding against the Guarantor’s Affiliates.

  
 1 

 2. The liability of Guarantor hereunder shall not be affected or impaired by (a) any
other continuing or other guaranty, undertaking or maximum liability of Guarantor, or of any other person, as to the obligations and/or performance of the Guarantor’s Affiliates; (b) any reduction of any such other guaranty or undertaking;
(e) any payment made to Haverhill or Jewell in respect of the Guaranteed Obligations which Haverhill, Jewell or their respective affiliates repays to the Guarantor’s Affiliates pursuant to court order in any bankruptcy, reorganization,
arrangement, moratorium or other debtor relief proceeding, and Guarantor waives any right to the deferral or modification of its obligations hereunder by reason of any such proceeding commenced by or against any such Guarantor Affiliate;
(d) any permitted assignment by Haverhill or Jewell of any of their rights under, as applicable, the Haverhill Contract or the Jewell Contract; or (e) the sale, transfer or other disposition by Guarantor of any or all of its ownership
interest in the Guarantor’s Affiliates; provided, notwithstanding any other provision in this Guaranty, no action shall commence against the Guarantor unless and until written notice of default is first made upon the applicable Guarantor’s
Affiliate and Guarantor pursuant to the requirements set forth in the Haverhill Contract or, as applicable, the Jewell Contract, and such Guarantor’s Affiliate or the Guarantor fails to cure such default within the applicable cure period set
forth in the Haverhill Contract or, as applicable, the Jewell Contract. 
 3. Other than the notice required to be given to the
Guarantor as specified in Section 2 of this Guarantee, Guarantor hereby waives notice of acceptance of this Guaranty and notice of any liability to which it may apply, and waives promptness, diligence, presentment, demand of payment, protest,
notice of dishonor or nonpayment of any such liabilities, suit or taking of other action by Haverhill or Jewell against Guarantor. 
 4. Haverhill or Jewell may at any time and from time to time without the consent of or notice to the Guarantor, without incurring responsibility to the Guarantor, without impairing or releasing the
obligations of the Guarantor hereunder upon or without any terms or conditions and in whole or in part: 
 (a)
Exercise or refrain from exercising any rights against the Guarantor’s Affiliates or otherwise act or refrain from acting; 
 (b) Settle or compromise any of the Guaranteed Obligations or any liability (including any of those hereunder) incurred directly or indirectly in respect thereof or hereof; and/or 

(c) Consent to or waive any breach of, or any act, omission or default under, as applicable, the Haverhill Contract or, as
applicable, the Jewell Contract, or otherwise amend, modify or supplement the Haverhill Contract or, as applicable, the Jewell Contract. 
 5. This Guaranty shall be primary, absolute and unconditional notwithstanding the occurrence of any event or the existence of any other circumstances which might constitute a legal or equitable discharge
of a surety or guarantor except payment in full of the Guaranteed Obligations. 

  
 2 

 6. This Guaranty is a continuing one and all liabilities to which it applies or may apply
under the terms hereof shall be conclusively presumed to have been created in reliance hereon. No failure or delay on the part of Haverhill or, as applicable, Jewell in exercising any right, power or privilege hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein expressly specified
are cumulative and not exclusive of any rights or remedies which Haverhill or, as applicable, Jewell would otherwise have. Other than the notice required to be given to the Guarantor as specified in Section 2 of this Guarantee, no notice to or
demand on the Guarantor in any case shall entitle the Guarantor to any other further notice or demand in similar or other circumstances or constitute a waiver of the rights of Haverhill or, as applicable, Jewell to any other or further action in any
circumstances without notice or demand. It is not necessary for Haverhill or, as applicable, Jewell to inquire into the capacity or powers of Guarantor’s Affiliates or the officers, directors, or agents acting or purporting to act on its
behalf, and any indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed hereunder. 
 7. Subject to Section 2 above, Guarantor waives, to the maximum extent permitted by applicable law, any right to require Haverhill or, as applicable, Jewell to (a) proceed against the
Guarantor’s Affiliates or (as applicable) any other person, or (b) pursue any other of its remedies. 
 8. Guarantor
assumes all responsibility for being and keeping itself informed of financial condition and assets of the Guarantor’s Affiliates and of all other circumstances bearing upon the risk of nonpayment or nonperformance of the Guaranteed Obligations
and the nature, scope and extent of the risks which the Guarantor assumes and incurs hereunder, and agrees that neither Haverhill or, as applicable, Jewell shall have no duty to advise the Guarantor of information known to it regarding such
circumstances or risks. 
 9. If and to the extent that Guarantor makes any payment or performance to Haverhill or, as
applicable, Jewell pursuant to or in respect of this Guaranty, then any claim which the Guarantor may have against the Guarantor’s Affiliates by reason thereof shall be subject and subordinate to the prior payment and performance in full of the
Guaranteed Obligations to Haverhill or, as applicable, Jewell. 
 10. Guarantor hereby agrees to pay all reasonable
out-of-pocket costs and expenses of Haverhill or, as applicable, Jewell (including, without limitation, the reasonable fees and disbursements of counsel employed by Haverhill or, as applicable, Jewell) in connection with the enforcement of this
Guaranty and any amendment, waiver or consent relating hereto against the Guarantor. 
 11. Neither this Guaranty nor any
provision hereof may be changed, waived, discharged or terminated except with the written consent of Haverhill, Jewell and Guarantor. 
 12. All notices requests, demands or other communications pursuant hereto shall be made in writing (including telegraphic, telex, facsimile transmission or cable communication)

  
 3 

 
and mailed, telegraphed, telexed, transmitted, cabled or delivered to the following addresses (or to such other address(es) designated by Haverhill, Jewell or Guarantor): 

 

			
	If to Haverhill or Jewell:	  	 SunCoke Energy, Inc.

Parkside Plaza 11400
 Parkside Plaza Drive
Knoxville, TN, 37934

		  	Attention: Senior Vice President and General Counsel
		  	FAX: (865) 288-5281
		  	Confirm: (865) 288-5213
		
	If to Guarantor:	  	 ArcelorMittal USA Inc.
 1
South Dearborn Street, 19th Floor

		  	Chicago, IL 60606
		  	 Attention: Associate General Counsel
 FAX: (312) 899-3504
 Confirm: (312) 899-3768

All such notices and communication shall be mailed, facsimile transmitted, or sent by overnight courier, and shall be effective when received.

 13. This Guaranty and the rights and obligations of Haverhill, Jewell and Guarantor shall be governed by and construed in
accordance with the law of the State of New York, without giving effect to the conflict of laws rules thereof. 
 14. This
Guaranty may be executed in one or more counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same
instrument. 
 * * * * * * * * * * * 

  
 4 

 IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed and delivered at of
the date first above written. 
  

			
	ArcelorMittal USA Inc.
		
	By:	 	  

		 	Name:
		 	Title:
	
	Acknowledged:
	
	Haverhill North Coke Company
		
	By:	 	  

		 	Name:
		 	Title:
	
	Jewell Coke Company, L.P.
		
	By:	 	  

		 	Name:
		 	Title:

  
 5Amended and Restated Articles of Incorporation of the Registrant

 Exhibit 4.1 
 ARTICLES OF AMENDMENT 
 FBR CAPITAL MARKETS CORPORATION 

The undersigned, on behalf of the corporation set forth below, pursuant to Title 13.1, chapter 9, Article 11 of the Code of Virginia,
states as follows: 
  

	 	1.	The name of the corporation is FBR Capital Markets Corporation. 

  

	 	2.	Article I of the company’s Amended and Restated Articles of Incorporation is amended to read in its entirety as follows: 

ARTICLE I 
 Name

 The name of the Corporation is FBR & Co. 

 

	 	3.	The foregoing amendment was adopted on June 1, 2011. 

  

	 	4.	The proposed amendment was adopted by the Board of Directors and submitted to the shareholders in accordance with the provisions of Title 13.1, Chapter 9 of the Code of
Virginia, and: 

  

	 	(a)	The designation, number of outstanding shares, and the number of votes entitled to be cast by the holders of common stock entitled to vote on the amendment were:

  

									
	 Designation
	  	Number of outstanding shares	 	  	Number of votes entitled to be cast	 
	 Common Stock
	  	 	61,684,723	  	  	 	61,684,723	  

  

	 	(b)	And the total number of votes cast for and agents the amendment by the holders of common stock was 

 

					
	 Total votes FOR
	  	Total votes AGAINST	 
	55,608,471	  	 	249,248	  

  

	 	(c)	And the number cast for the amendment was sufficient for approval. 

 Executed in the name of the corporation by: 

					
			
	/s/ Ann Marie Pulsch	 		 	June 1, 2011 
	Ann Marie Pulsch	 		 	Corporate Secretary

 AMENDED AND RESTATED ARTICLES OF 

INCORPORATION 
 OF 
 FBR CAPITAL MARKETS CORPORATION 

ARTICLE I 
 NAME

 1.1 Name. The name of the Corporation is FBR Capital Markets Corporation (the “Corporation”). 

1.2 Registered Agent and Registered Office. The address of the initial registered office of the Corporation, which is located in
the City of Richmond, Virginia, is 951 East Byrd Street, Richmond, Virginia 23219. The initial registered agent of the Corporation is Daniel M. LeBey, whose business office is identical with the initial registered office and who is a resident of
Virginia and a member of the Virginia State Bar. 
 ARTICLE II 

PURPOSE 
 2.1
Purpose. The purpose for which the Corporation is organized is to transact any lawful business not required to be specifically stated in the Articles of Incorporation. 
 ARTICLE III 
 AUTHORIZED STOCK 

3.1 Number and Designation. The Corporation shall have authority to issue 400,000,000 shares of capital stock, of which
300,000,000 shall be shares of common stock, par value $0.001 per share (“Common Stock”) and 100,000,000 shall be shares of preferred stock, par value $0.001 per share (“Preferred Stock”). 

3.2 Preemptive Rights. No holder of outstanding shares shall have any preemptive right with respect to, or to subscribe for or
purchase: (i) any shares of any class of the Corporation, whether now or hereafter authorized, including without limitation shares issued for cash, property or services or as a dividend or otherwise; (ii) any warrants, rights or options to
purchase any such shares; or (iii) any obligations convertible into any such shares or into warrants, rights or options to purchase any such shares. 
 ARTICLE IV 
 PREFERRED STOCK 

4.1 Issuance in Series. The Board of Directors is authorized to issue Preferred Stock from time to time in one or more series and
to provide for the designation, preferences, limitations and relative rights of the shares of each series by the adoption of Articles of Amendment to the Articles of Incorporation of the Corporation setting forth: 

(a) The maximum number of shares in the series and the designation of the series, which designation shall distinguish the
shares thereof from the shares of any other series or class; 
 (b) Whether shares of the series shall have
special, conditional or limited voting rights, or no right to vote except to the extent required by law; 
 (c)
Whether shares of the series are redeemable or convertible (x) at the option of the Corporation, a shareholder or another person or upon the occurrence of a specified event, (y) for cash, indebtedness, securities or other property, and
(z) at prices and in amounts specified or determined in accordance with a designated formula; 

 (d) Any right of holders of shares of the series to distributions,
calculated in any manner, including the rate or rates of dividends, and whether dividends shall be cumulative, noncumulative or partially cumulative; 
 (e) The amount payable upon the shares of the series in the event of voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation; 

(f) Any preference of the shares of the series over the shares of any other series or class with respect to distributions,
including dividends, and with respect to distributions upon the liquidation, dissolution or winding up of the affairs of the Corporation; and 
 (g) Any other preferences, limitations or specified rights (including a right that no transaction of a specified nature shall be consummated while any shares of such series remain outstanding except upon
the assent of all or a specified portion of such shares) now or hereafter permitted by the laws of the Commonwealth of Virginia and not inconsistent with the provisions of this Section 4.1. 

4.2 Articles of Amendment Before Issuance. Before the issuance of any shares of a series of Preferred Stock, Articles of Amendment
establishing such series shall be filed with and made effective by the State Corporation Commission of Virginia, as required by law. 
 ARTICLE V 
 COMMON STOCK 

5.1 Respective Rights and Privileges. Except as otherwise provided in this Article V or as otherwise required by applicable
law, all shares of Common Stock will entitle the holders thereof to the same rights and privileges and shall rank equally, share ratably, and be identical in all respects as to all matters. The holders of Common Stock shall have the respective
rights and preferences set forth in this Article V. 
 5.2 Voting Rights.  

(a) The holders of Common Stock will be entitled to one vote per share on all matters to be voted on by the
Corporation’s shareholders and shall vote together as a single voting group. 
 (b) The holders of the
outstanding Common Stock shall, to the exclusion of the holders of any other class of shares of the Corporation, have the sole power to vote for the election of directors and for all other purposes without limitation except (i) as otherwise
provided in the Articles of Amendment establishing any series of Preferred Stock or (ii) as required by law. 
 5.3
Dividends. The Board of Directors may from time to time authorize and declare to shareholders such dividends, in cash or other assets of the Corporation or in securities of the Corporation or from any other source as the Board of Directors in
its discretion shall determine. Subject to the provisions of law and the rights of holders of shares of Preferred Stock at the time outstanding, when and as dividends are declared thereon, whether payable in cash, property or securities of the
Corporation, the holders of Common Stock will be entitled to share ratably, on a per share basis, in such dividends. 
 5.4
Liquidation. Subject to the rights of holders of shares of Preferred Stock at the time outstanding, the holders of the Common Stock shall be entitled to participate ratably, on a per share basis, in all distributions to the holders of the
Common Stock in any liquidation, dissolution or winding up of the Corporation. 

 ARTICLE VI 
 BOARD OF DIRECTORS 
 6.1 Number. The number of directors shall be fixed by
the Bylaws or, in the absence of a Bylaw fixing the number, the number shall be nine. 
 6.2 Removal. The outstanding
shares of the Corporation entitled to vote generally in the election of directors are referred to as the “Voting Stock.” Except for directors elected by the holders of outstanding shares of Preferred Stock as a separate voting group, any
director may be removed from office with or without cause by the affirmative vote of the holders of a majority of the voting power of all Voting Stock then outstanding, voting together as a single voting group. 

ARTICLE VII 

LIMIT ON LIABILITY AND INDEMNIFICATION 
 7.1 Definitions. For purposes of this Article VII the following definitions shall apply: 
 (a) “applicant” means the person seeking indemnification pursuant to this Article VII; 
 (b) “Corporation” for purposes of this Article VII, means this corporation and any predecessor entity; 

(c) “expenses” includes counsel fees, expert witness fees, and costs of investigation, litigation and appeal, as
well as any amounts expended in asserting a claim for indemnification; 
 (d) “liability” means the
obligation to pay a judgment, settlement, penalty, fine, including any excise tax assessed with respect to an employee benefit plan, or reasonable expenses incurred with respect to a proceeding; 

(e) “party” includes an individual who was, is, or is threatened to be made a named defendant or respondent in a
proceeding; 
 (f) “proceeding” means any threatened, pending, or completed action, suit, or
proceeding, whether civil, criminal, administrative, or investigative and whether formal or informal. 
 7.2 Limit on
Liability. In any proceeding brought by or in the right of the Corporation or brought by or on behalf of shareholders of the Corporation, no director or officer of the Corporation shall be liable to the Corporation or its shareholders for
monetary damages with respect to any transaction, occurrence, or course of conduct, whether prior or subsequent to the effective date of this Article VII, except for liability resulting from such person’s having engaged in willful
misconduct or a knowing violation of the criminal law or any federal or state securities law. 
 7.3 Indemnification. The
Corporation shall indemnify any person who is or was a director or officer of the Corporation and who is a party to any proceeding, including a proceeding brought by a shareholder in the right of the Corporation or brought by or on behalf of
shareholders of the Corporation, by reason of the fact that he (a) is or was a director or officer of the Corporation or (b) is or was serving at the request of the Corporation as a director, trustee, partner, member or officer of another
corporation, partnership, joint venture, limited liability company, trust, employee benefit plan, or other enterprise, against any liability incurred by him in connection with such proceeding unless the director or officer engaged in willful
misconduct or a knowing violation of the criminal law or any federal or state securities law. 
 The Board of Directors shall
have the authority, by a majority vote of a quorum of Disinterested Directors, to enter into a contract to indemnify any director or officer in respect of any proceedings arising from any act or omission, whether occurring before or after the
execution of such contract. 

 A Disinterested Director is a director who does not have (i) financial interest in a
matter that is the subject of such action or (ii) a familial, financial, professional, employment or other relationship with a person who has a financial interest in the matter, either of which would reasonably be expected to affect adversely
the objectivity of the director when participating in the action, and is also not a party to the proceeding. The presence of one or more of the following circumstances shall not by itself prevent a person from being a Disinterested Director:
(i) nomination or election of the director to the current board by any person, acting alone or participating with others, who is so interested in the matter; or (ii) service as a director of another corporation of which an interested
person is also a director. 
 7.4 Application; Amendment. The provisions of this Article VII shall be applicable to
all proceedings commenced after the adoption hereof by the Corporation, arising from any act or omission, whether occurring before or after such adoption. No amendment or repeal of this Article VII shall have any effect on the rights provided
under this Article with respect to any act or omission occurring prior to such amendment or repeal. The Corporation shall promptly take all such actions, and make all such determinations, as shall be necessary or appropriate to comply with its
obligation to make any indemnity under this Article VII and shall, subject to and in accordance with Section 7.7 of this Article VII, pay or reimburse all reasonable expenses, including attorneys’ fees, incurred by any such
indemnified person in connection with such actions and determinations or proceedings of any kind arising therefrom. 
 7.5 No
Presumption. The termination of any proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not of itself create a presumption that the applicant did not meet the standard of conduct
described in Section 7.2 or 7.3 of this Article VII. 
 7.6 Indemnification Determination. Any indemnification
under 7.3 of this Article VII (unless ordered by a court) shall be made by the Corporation only as authorized in the specific case upon a determination that indemnification of the applicant is proper in the circumstances because he has met the
applicable standard of conduct set forth in Section 7.3. 
 The determination shall be made: 

(a) If there are two or more Disinterested Directors, by the Board of Directors by a majority vote of all the
Disinterested Directors, a majority of whom shall for such purposes constitute a quorum, or by a majority of the members of a committee of two or more Disinterested Directors appointed by such a vote; 

(b) By special legal counsel: 
  

	 	(i)	Selected by the Board of Directors or its committee in the manner prescribed in subsection (a) of this Section 7.6; or 

 

	 	(ii)	If there are fewer than two Disinterested Directors, selected by the Board of Directors, in which selection directors who do not qualify as Disinterested Directors may
participate; or 

 (c) By the shareholders, but shares owned by or voted under the control of a
director who at the time does not qualify as a Disinterested Director may not be voted on the determination. 
 Authorization of
indemnification shall be made in the same manner as the determination that indemnification is permissible, except that if there are fewer than two Disinterested Directors or if the determination is made by special legal counsel, authorization of
indemnification shall be made by those entitled under subsection (b) of this Section 7.6 to select counsel. 

Notwithstanding the foregoing, in the event there has been a change in the composition of a majority of the Board of Directors after the
date of the alleged act or omission with respect to which indemnification is claimed, any determination as to indemnification and advancement of expenses with respect to any claim for indemnification made pursuant to this Article VII shall be
made by special legal counsel agreed upon by the Board of Directors and the applicant. If the Board of Directors and the applicant are unable to agree upon such special legal counsel, the Board of Directors and the applicant each shall select a
nominee, and the nominees shall select such special legal counsel. 

 7.7 Expense Reimbursement. 

(a) The Corporation shall pay for or reimburse the reasonable expenses incurred by any person entitled to be indemnified
by the Corporation under this Article VII who is a party to a proceeding in advance of final disposition of the proceeding or the making of any determination under Section 7.6 of this Article VII if the applicant furnishes the
Corporation: 
  

	 	(i)	a written statement of his good faith belief that he has met the standard of conduct described in Section 7.3 of this Article VII; and

  

	 	(ii)	a written undertaking, executed personally or on his behalf, to repay the advance if it is ultimately determined that he did not meet such standard of conduct.

 (b) The undertaking required by paragraph (ii) of subsection (a) of this
Section 7.7 shall be an unlimited general obligation of the applicant but need not be secured and may be accepted without reference to financial ability to make repayment. 

(c) Authorizations of payments under this Section 7.7 shall be made by 

 

	 	(i)	The Board of Directors 

 (A) If there are two or more Disinterested Directors, by a majority of all the Disinterested Directors, a majority of whom shall for such purpose constitute a quorum, or by a majority of a committee of
two or more Disinterested Directors appointed by such a vote; or 
 (B) If there are fewer than two or more
Disinterested Directors, by the vote necessary for action by the Board in accordance with subsection C of § 13.1-688 of the Virginia Stock Corporation Act (the “VSCA”), as it may be amended from time to time, or any successor
provision, in which authorization directors who do not qualify as Disinterested Directors may participate; or 
  

	 	(ii)	By the shareholders, but shares owned by or voted under the control of a director who at the time does not qualify as a Disinterested Director may not be voted on the
authorization. 

 7.8 Indemnification of Others. The Board of Directors is hereby empowered, by majority
vote of a quorum consisting of Disinterested Directors, to cause the Corporation to indemnify or contract to indemnify any person not specified in Section 7.2 or 7.3 of this Article VII who was, is or may become a party to any proceeding,
by reason of the fact that he is or was an employee or agent of the Corporation, or is or was serving at the request of the Corporation as director, officer, employee or agent of another corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise, to the same extent as if such person were specified as one to whom indemnification is granted in Section 7.3 of this Article VII. The provisions of Sections 7.4 through 7.7 of this Article VII
shall be applicable to any indemnification provided pursuant to this Section 7.8. 
 7.9 Insurance. The Corporation
may purchase and maintain insurance to indemnify it against the whole or any portion of the liability assumed by it in accordance with this Article VII and may also procure insurance, in such amounts as the Board of Directors may determine, on
behalf of any person who is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise, against any liability asserted against or incurred by him in any such capacity or arising from his status as such, whether or not the Corporation would have power to indemnify him against such liability
under the provisions of this Article VII. 

 7.10 Miscellaneous. Every reference herein to directors, officers, employees or
agents shall include former directors, officers, employees and agents and their respective heirs, executors and administrators. The indemnification hereby provided and provided hereafter pursuant to the power hereby conferred by this
Article VII on the Board of Directors shall not be exclusive of any other rights to which any person may be entitled, including any right under policies of insurance that may be purchased and maintained by the Corporation or others, with
respect to claims, issues or matters in relation to which the Corporation would not have the power to indemnify such person under the provisions of this Article VII. Such rights shall not prevent or restrict the power of the Corporation to make
or provide for any further indemnity, or provisions for determining entitlement to indemnity, pursuant to one or more indemnification agreements, bylaws, or other arrangements (including, without limitation, creation of trust funds or security
interests funded by letters of credit or other means) approved by the Board of Directors (whether or not any of the directors of the Corporation shall be a party to or beneficiary of any such agreements, bylaws, or arrangements); provided, however,
that any provision of such agreements, bylaws, or other arrangements shall not be effective if and to the extent that it is determined to be contrary to this Article VII or applicable laws of the Commonwealth of Virginia. 

7.11 Severability. Each provision of this Article VII shall be severable, and an adverse determination as to any such
provision shall in no way affect the validity of any other provision. 
 ARTICLE VIII 

CERTAIN VOTING MATTERS 
 8.1 Certain Voting Matters.  
 (a) As to each voting group
entitled to vote on an amendment or restatement of these Articles of Incorporation, the vote required for approval shall be: (i) the vote required by the terms of these Articles of Incorporation, as amended or as restated from time to time, if
such terms specifically require the approval of more than a majority of the votes entitled to be cast thereon by such voting group; or (ii) if clause (i) of this Section 8.1(a) of this Article VIII is not applicable, a majority
of the votes entitled to be cast thereon. 
 (b) As to (i) any plan of merger or share exchange to which the
Corporation is a party, (ii) any sale, lease, exchange or other disposition of the Corporation’s assets, (iii) any plan of domestication or entity conversion, or (iv) any dissolution of the Corporation for which the VSCA requires
an affirmative vote of more than two-thirds of the votes cast by each voting group of shareholders entitled to vote thereon, but which requirement may be reduced to a lesser percentage under the VSCA if the lesser percentage is specified in the
Articles of Incorporation of the Corporation, the affirmative vote of a majority of the votes entitled to be cast thereon by each voting group entitled to vote on the plan or transaction at a meeting at which a quorum of the voting group exists
shall be required, in lieu of such two thirds requirement, but in addition to any other vote otherwise required by this Article VIII or under the VSCA. 
 (c) Except for amendments contained in Articles of Amendment adopted by the Board of Directors pursuant to Article IV of these Articles of Incorporation establishing any series of Preferred Stock,
the affirmative vote of the holders of at least a majority of the voting power of all Voting Stock then outstanding, voting together as a single voting group, shall be required to amend, alter or repeal any provision in these Articles of
Incorporation that: (i) requires the Corporation to hold, or set forth procedures applicable to the holding of, a special meeting of shareholders at the call, demand or request of any Person, including, without limitation, any shareholder or
shareholders of the Corporation; or (ii) governs the nomination of persons for election to the Board of Directors or the proposal of business to be considered by the shareholders at an annual or special meeting of shareholders. 

(d) The affirmative vote of the holders of at least 80% of the voting power of all Voting Stock then outstanding, voting
together as a single voting group, shall be required to alter, amend, modify or repeal, or to adopt, any provision inconsistent with any provision in this Article VIII. 

 ARTICLE IX 
 SPECIAL MEETINGS OF SHAREHOLDERS 
 9.1 Special Meetings. Special meetings
of the shareholders may be called only by (i) the Chairman, any Vice Chairman, the Chief Executive Officer or the President of the Corporation, (ii) the Board of Directors pursuant to a resolution stating the purpose or purposes thereof
approved by a majority of the directors of the Corporation, or (iii) the holders of a majority of the outstanding shares of Common Stock of the Corporation (the “Majority Holders”). Only business within the purpose or purposes
described in the notice of the special meeting delivered by the Corporation shall be conducted at a special meeting of shareholders. 
 (a) Nominations of persons for election to the Board of Directors may be made at a special meeting of shareholders at which directors are to be elected pursuant to the Corporation’s notice of meeting
(a) by or at the direction of the Board of Directors or (b) by any shareholder of the Corporation who is a shareholder of record at the time of giving of notice provided for in this Article, who shall be entitled to vote at the meeting and
who complies with the notice procedures set forth in this Article. In the event the Corporation calls a special meeting of shareholders for the purpose of electing one or more directors to the Board of Directors, any such shareholder may nominate a
person or persons (as the case may be), for election to such position(s) as specified in the Corporation’s notice of meeting, if the shareholder’s written notice of nomination shall be delivered to the Secretary of the Corporation at the
principal executive offices of the Corporation not earlier than the close of business on the ninetieth (90th) day prior to such special meeting and not later than the close of business on the later of the sixtieth (60th) day prior to such
special meeting or the tenth (10th) day following the day on which public announcement is first made of the date of the special meeting and of the nominees proposed by the Board of Directors to be elected at such meeting. In no event shall the
public announcement of an adjournment of a special meeting commence a new time period for the giving of a shareholder’s notice as described above. 
 For purposes of this Section 9.1(a), “public announcement” shall mean disclosure in a press release reported by the Dow Jones News Service, Associated Press or comparable national news
service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act. 
 Notwithstanding the foregoing provisions of this Section 9.1(a), a shareholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with
respect to the matters set forth in this Section 9.1(a). Nothing in this Section 9.1(a) shall be deemed to affect any rights (i) of shareholders to request inclusion of proposals in the Corporation’s proxy statement pursuant
to Rule 14a-8 under the Exchange Act or (ii) of the holders of any series of Preferred Stock to elect directors under specified circumstances. 
 (b) Notwithstanding the provisions of Section 9.1(a) of this Article IX, the Majority Holders may direct the Corporation, in a written notice duly executed by the Majority Holders and
delivered to the Secretary of the Corporation, to call a special meeting of the shareholders for the purpose or purposes specified by the Majority Holders in such written notice, including but not limited to the removal or the election of one or
more directors. The Corporation shall prepare a notice of special meeting of shareholders noticing the special meeting within sixty (60) days of the date of the notice of special meeting and shall mail such notice of special meeting to the
shareholders of the Corporation within thirty (30) days after receipt by the Secretary of the Corporation of the written notice from the Majority Holders described in the immediately preceding sentence. Only business within the purpose or
purposes described in the notice of the special meeting delivered by the Corporation to the shareholders shall be conducted at the special meeting of shareholders held pursuant to this Section 9.1(b). Nothing in this
Section 9.1(b) shall be deemed to affect any rights (i) of shareholders to request inclusion of proposals in the Corporation’s proxy statement pursuant to Rule 14a-8 under the Exchange Act or (ii) of the holders of any
series of Preferred Stock to elect directors under specified circumstances. 
 9.2 Other Procedures. Except as expressly
provided in this Article IX, all procedures applicable to meetings of the shareholders of the Corporation as specified in the Bylaws shall apply to special meetings of the shareholders. 

 ARTICLE X 
 INVESTMENT AGREEMENT, 
 GOVERNANCE AGREEMENT AND VOTING AGREEMENT 

10.1 Investment Agreement, Governance Agreement and Voting Agreement. All of the provisions set forth in these Articles of
Incorporation shall be subject to the terms and conditions of that certain Investment Agreement, dated as of July 19, 2006, as amended, by and among the Corporation, Forest Holdings LLC and Forest Holdings (ERISA) LLC, that certain Governance
Agreement, dated as of July 20, 2006, as amended, by and among Friedman, Billings, Ramsey Group, Inc., FBR TRS Holdings, Inc., Forest Holdings (ERISA) LLC and Forest Holdings LLC and that certain Voting Agreement, dated as of July 20,
2006, as amended, by and among the Corporation, Friedman, Billings, Ramsey Group, Inc., FBR TRS Holdings, Inc., Forest Holdings (ERISA) LLC and Forest Holdings LLC, in each case for so long as such agreement remains in effect in accordance with its
terms. 
 10.2 Amendments to this Article X. The written consent of Forest Holdings LLC and Forest Holdings (ERISA) LLC
shall be required to amend, alter or repeal any provision under this Article X for so long as each of the agreements referred to in Section 10.1 remains in effect in accordance with its terms. 

ARTICLE XI 

AFFILIATED TRANSACTIONS 
 11.1 Non-Applicability. It is expressly provided that the Corporation shall not be governed by Article 14 of the VSCA, Affiliated Transactions, as it may be amended from time to time.

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