EXHIBIT 10.40
USEC Proprietary Information
Contract No. 727613
Confidential Treatment has been requested for the redacted portions. The
confidential redacted
portions have been filed separately with the Securities and Exchange Commission.
Asterisks denote
such redactions.
USEC Inc.
Centrifuge Commercial Plant Casing Manufacturing
CONTRACT NUMBER: 727613 Revision 1
CONTRACTOR: Major Tool and Machine, Inc
EFFECTIVE DATE: November 3, 2009
Contract Purchase Agreement
IN WITNESS WHEREOF, the Parties have caused this Revision 1 to be signed by
their duly authorized representatives as of the Effective Date.

     
USEC Inc.
  Major Tool and Machine, Inc.
 
   
By: /s/ Charles W. Kerner
  By: /s/ Natalie A. G. Weir
 
   
Name: Charles W. Kerner
  Name: Natalie A. G. Weir
 
   
Title: Director, Contracts and Materials
  Title: Chief Financial Officer

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USEC Proprietary Information
Contract No. 727613
CONTRACT NUMBER: 727613
DATE: November 3, 2009
Revision 1
     USEC Inc., a Delaware corporation, (“Corporation”), and Major Tool and
Machine, Inc., an Indiana corporation (“Contractor”) (the Corporation and
Contractor being referred to herein individually as a “Party” and together, as
the “Parties”) desire to modify the Contract for Centrifuge Commercial Plant
Casing Manufacturing, Contract No. 727613 (“Contract”) for the purpose of:

  (1)   acknowledging a change to the schedule of delivery;     (2)   fully
satisfying any claim by Contractor for any equitable adjustment related to
principal and interest payments for the real property located at 2045 Andrew J.
Brown, Indianapolis, Indiana (also referred to herein as “Building B-20”), based
on the revision of the delivery schedule prior to September 1, 2009, by
providing for additional pre-payments by the Corporation based upon Building
B-20 principal and interest;     (3)   providing for a corresponding credit
against the price of the Casings actually purchased by Corporation pursuant to
the mutually agreed upon new Attachment III; and     (4)   Establishing a basis
for equitable adjustment payments from September 1, 2009 through commencement of
production under a new Attachment III.

     All other adjustments relating to periods prior to September 1, 2009 as a
consequence of the change to the delivery schedule prior to September 1, 2009
were resolved pursuant to a separate letter agreement between the Parties dated
September 18, 2009 (the “Letter Agreement”); provided, however, the Parties
acknowledge that Contractor remains entitled to an equitable adjustment (and to
its other rights and remedies under the Contract for non-payment of such
equitable adjustment) for all periods on or after September 1, 2009 for (a) the
change in the delivery schedule occurring prior to September 1, 2009 for all
items of cost and expense other than with respect to Building B-20 principal and
interest and (b) any change to an agreed delivery schedule that occurs on or
after September 1, 2009.
     In consideration of the mutual promises hereinafter set forth, the Parties
hereby agree to the following modification of the Contract:

1.   Attachment III to the Contract is hereby deleted. The Parties agree that a
new revised schedule (and Attachment III) will be developed and mutually agreed
upon when the Corporation secures funding to construct the ACP through the DOE
Loan Guarantee program or other source(s). Corporation acknowledges that such
schedule will require

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USEC Proprietary Information
Contract No. 727613

    adequate time for Contractor to order supplies, install additional equipment
and increase staff at Contractor’s facility before volume manufacturing can
commence.   2.   All references to December 31, 2012, in Articles II and XVIII
are hereby replaced with references to December 31, 2013. Notwithstanding the
foregoing, Contractor may terminate the Contract by written notice to the
Corporation (and such termination shall be deemed for all purposes to be a
termination by the Corporation under Paragraph 21(a)(i) of the General Terms and
Conditions (Exhibit A) of the Contract), after December 31, 2011, if Corporation
has not obtained completion financing for the American Centrifuge Plant as of
December 31, 2011.   3.   Article XXV, Technical Representation is hereby
modified by (a) deleting “Jim Rivers” and inserting in place thereof “Greg
Balek” and (b) deleting “Matt Stanke” and inserting in place thereof “Duke
Hughes.”   4.   Article III Non-Recurring Costs is hereby modified by:

  a.   changing the heading to read “III. Non-Recurring Costs/Prepayment”;    
b.   adding immediately prior to the first paragraph a new subheading to read as
follows: “A. Non-Recurring Costs”; and     c.   adding at the end of the section
the following new subsection:

      B. Prepayment         Due to the change prior to September 1, 2009 in the
schedule for delivery of Casings under this Contract, Corporation shall make
monthly prepayments on future Casings delivery sized to represent a portion of
Contractor’s principal and interest costs associated with Building B-20. These
prepayments shall be made in the amounts as specified in new Attachment IV,
shall not be refundable to Corporation under any circumstances, and shall not be
affected by any increase or decrease of Contractor’s payments under its mortgage
or other financing arrangements related to Building B-20, including any changes
resulting from any refinancing, prepayment, second mortgage, extension or other
similar voluntary action by Contractor. The initial prepayment shall be due upon
the execution and delivery of Revision 1 and shall be equal to the aggregate of
all amounts set forth in Attachment IV which are due and payable on or before
the date of execution and delivery of Revision 1 by wire transfer of immediately
available funds (or by Corporation’s check delivered to Contractor on or before
such date). Subsequent required prepayments are specified in Attachment IV and
shall be paid by Corporation on or before the 25th of each month by wire
transfer of immediately available funds (or by Corporation’s check delivered to
Contractor on or before such date). Corporation’s obligation to make the
prepayments as specified herein (and Attachment IV) shall survive any
termination or suspension of this Contract except for a termination resulting
from Contractor’s uncured default under this

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USEC Proprietary Information
Contract No. 727613

      Contract. In the event that Corporation fails to timely make a prepayment
when due, and such non-payment shall remain uncured for 30 days after notice
from Contractor is delivered to Corporation, Contractor may declare all unpaid
prepayments specified under Principal Amount in Attachment IV, regardless of the
date for payment of such prepayment as reflected therein, immediately due and
payable (along with all prepayments under Interest Amount in Attachment IV
through the date Corporation actually makes payment in full of all of the
Principal Amounts to Contractor).

5.   Article IV. A of the Contract is hereby deleted and replaced with the
following:       A. Price Prior to Production under Attachment III
The price per Casing from September 1, 2009 until commencement of production
under a new mutually agreed upon Attachment III shall be mutually agreed by the
Parties. Quantities ordered prior to agreement to a new schedule as described in
paragraph 1 of Revision 1 to the Contract shall be determined by Corporation. In
addition, Corporation shall pay to Contractor a Level Billing Amount of *****
per month plus any amounts to retain personnel agreed by the Parties (provided,
that such costs shall not be duplicated in the price of any Casings sold during
the same period) until and excluding the month in which production is scheduled
to commence under a new mutually agreed upon Attachment III. The Level Billing
Amount is subject to review at six month intervals for increases or decreases
based on actual costs incurred (or to be incurred) by Contractor.

6.   Article IV. B of the Contract is hereby amended to add the following at the
end thereof “, minus ***** per Casing purchased under the new mutually agreed
Attachment III until the aggregate prepayments actually paid by Corporation to
Contractor under Article III. B of this Contract are fully recovered by
Corporation from actual purchases of such Casings.”

7.   Paragraph 21 (d) of the General Terms and Conditions (Exhibit A) of the
Contract is hereby deleted and replaced with the following:

      (d) The Corporation’s Obligations Upon Termination or Suspension. Upon the
Corporation’s termination or suspension of this Contract for any reason other
than an uncured Default, the Corporation shall pay (i) the Contractor’s actual,
reasonable and verifiable costs and expenses, including reasonable indirect,
overhead and administrative costs (which is mutually agreed by the Parties to be
an amount equal to *****) as a consequence of such termination or suspension,
(ii) any costs which the Corporation is required to pay or reimburse the
Contractor under this Contract, including the amounts due and payable as of the
date of termination under Article III. B of this Contract (provided that
Contractor remains entitled to payments due and payable after the date of
termination as set forth in Article III.B), and (iii) all amounts due and
payable to Contractor under this Contract for performance prior to the date of
termination or suspension. Except as provided above, Corporation shall not be
liable for lost or anticipated profit or unabsorbed indirect costs or overheads.
In no event, except as provided above, shall the Corporation’s liability for all
such termination or

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USEC Proprietary Information
Contract No. 727613

      suspension expenses exceed the unpaid balance that would have been payable
by Corporation if both Parties had fully performed under this Contract through
the scheduled expiration date of this Contract. The right of reimbursement and
compensation set forth herein shall be the Contractor’s exclusive remedy in the
event of such termination or suspension. Upon the Corporation’s payment to the
Contractor in accordance with this subparagraph, title to any completed
Supplies, manufacturing materials and other things for which the Corporation has
paid (other than any equipment) shall vest in the Corporation, and the
Contractor shall protect and preserve the property in its possession in which
the Corporation has an interest and, upon the Buyer’s direction, deliver same to
the Corporation (at Corporation’s expense). Alternatively, at the Buyer’s
option, the Contractor shall attempt to sell or dispose of all or part of the
same, whereupon the Corporation shall be entitled to the benefits of any value
received (less any expenses of sale which shall be retained by Contractor).

8.   The Corporation hereby agrees (a) that Contractor may enter into ***** (and
perform such contracts) so long as Contractor does not enter into a contract (or
perform work) ***** and (b) the provisions of Paragraph 7(a) of the General
Terms and Conditions (Exhibit A) of the Contract shall *****.   9.   Article XVI
and Article XVIII are hereby amended by deleting the words “or suspension.”  
10.   The Letter Agreement shall be deemed to be a mutually agreed upon
amendment and modification to the Contract (and a default in performance of any
obligation or responsibility thereunder shall be default under the Contract), as
further amended and supplemented by this Revision 1. A default in the
performance of any obligation or responsibility under this Revision 1 shall be a
default under the Contract.   11.   In return for the agreement to make payment
in full of all of the prepayments described in Paragraph 4(c) of this Revision 1
and other good and valuable consideration received, Contractor agrees that any
claim for an equitable adjustment to the Contract due to the change in delivery
schedule prior to September 1, 2009 with respect to the principal and interest
costs for Building B-20 is fully satisfied, and hereby waives and releases the
Corporation from any liability related to, any claims, known or unknown, under
contract, tort or any other theory related to such principal and interest costs
unless Corporation defaults in making such prepayments as required hereby.

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Contract Number 727613
Attachment IV
Building B-20 Principal and Interest Payments
Payment Schedule

                  Month       Principal Balance       Principal Payment  
    Interest Payment        Total Payment
Apr-09
  *****   *****   *****   *****
May-09
  *****   *****   *****   *****
Jun-09
  *****   *****   *****   *****
Jul-09
  *****   *****   *****   *****
Aug-09
  *****   *****   *****   *****
Sep-09
  *****   *****   *****   *****
Oct-09
  *****   *****   *****   *****
Nov-09
  *****   *****   *****   *****
Dec-09
  *****   *****   *****   *****
Jan-l0
  *****   *****   *****   *****
Feb-l0
  *****   *****   *****   *****
Mar-10
  *****   *****   *****   *****
Apr-l0
  *****   *****   *****   *****
May-l0
  *****   *****   *****   *****
Jun-l0
  *****   *****   *****   *****
Jul-10
  *****   *****   *****   *****
Aug-l0
  *****   *****   *****   *****
Sep-l0
  *****   *****   *****   *****
Oct-l0
  *****   *****   *****   *****
Nov-10
  *****   *****   *****   *****
Dec-l0
  *****   *****   *****   *****
Jan-11
  *****   *****   *****   *****
Feb-11
  *****   *****   *****   *****
Mar-11
  *****   *****   *****   *****
Apr-l1
  *****   *****   *****   *****
May-11
  *****   *****   *****   *****
Jun-11
  *****   *****   *****   *****
Jul-11
  *****   *****   *****   *****
Aug-11
  *****   *****   *****   *****
Sep-l1
  *****   *****   *****   *****
Oct-11
  *****   *****   *****   *****
Nov-11
  *****   *****   *****   *****
Dec-11
  *****   *****   *****   *****
Jan-12
  *****   *****   *****   *****
Feb-12
  *****   *****   *****   *****
Mar-12
  *****   *****   *****   *****
Apr-12
  *****   *****   *****   *****
May-12
  *****   *****   *****   *****
Jun-12
  *****   *****   *****   *****
Jul-12
  *****   *****   *****   *****
Aug-12
  *****   *****   *****   *****

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Contract Number 727613
Attachment IV
Building B-20 Principal and Interest Payments

                  Month       Principal Balance       Principal Payment  
    Interest Payment        Total Payment
Sep-12
  *****   *****   *****   *****
Oct-12
  *****   *****   *****   *****
Nov-12
  *****   *****   *****   *****
Dec-12
  *****   *****   *****   *****
Jan-13
  *****   *****   *****   *****
Feb-13
  *****   *****   *****   *****
Mar-13
  *****   *****   *****   *****
 
  *****   *****   *****   *****
Total
  *****   *****   *****   *****

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