Document:

EX-10.1

EXHIBIT 10.1

Executive Incentive Plan

Summary Plan Description

PURPOSE

The purpose of the Executive Incentive Plan (the “EIP” or “Plan”) is to reward executives for the
successful long-term performance of USEC Inc. (the “Company”). The Plan provides a long-term
incentive to officers of the Company to make continued commitments and contributions to USEC’s
business success through the use of awards that reflect the value of USEC’s stock over a
performance period. The Plan provides the Board and the CEO with the flexibility to establish
specific performance targets aimed at achieving the Company’s significant mid and long term goals.
The Plan is in addition to the Company’s other time-based long-term incentive compensation (stock
options and restricted stock) provided to executives. The EIP replaces the Company’s previous
three-year Strategic Incentive Plan. The Plan arises under and is subject to the terms of the USEC
Inc. 1999 Equity Incentive Plan, as amended (the “Equity Incentive Plan”). Where not otherwise
defined herein, capitalized terms within this summary shall have the same meaning as provided under
the Equity Incentive Plan.

OVERVIEW

The EIP generally provides for awards after the end of a three-year performance period in the form
of (1) cash, (2) Shares of USEC stock that are immediately vested and freely transferable or (3)
vested restricted stock units (“RSUs”). A participant election to receive his or her award in the
form of RSUs must generally be made no later than six months prior to the end of the applicable
performance period, provided that no election will be permitted after the award has become both
substantially certain to be granted and payable in an amount that is readily ascertainable. Awards
in the form of cash or Shares of USEC stock will generally be granted within 2 1/2 months of the end
of the applicable performance period.

Awards will be granted at the end of each performance period following the achievement of
pre-determined goals. The amount of the award will be equal to the predetermined target award
where performance during the performance period, when measured against predetermined performance
goals, is at target. Where performance meets predetermined goals that are established below
(“threshold”) or above (“maximum”) target, the amount of the award granted will be between 80% and
120% of the predetermined target award. Where performance does not meet threshold performance, no
award will be made. The maximum award under the EIP is 120% of the predetermined target award.

DESIGN FEATURES

Eligibility for Participation — The EIP will only include selected key corporate management
positions nominated by the Chief Executive Officer and approved by the Compensation Committee at
the start of each performance period. Except under special circumstances, participation in the
Plan will be limited to officers of the Company. A new employee that is eligible for participation
will not be allowed to participate in the EIP for a particular performance period unless that
employee joins USEC no later than six months prior to the end of the performance period (e.g., no
later than June 30, 2008 for the performance period March 1, 2006 through December 31, 2008).

Performance Periods - The EIP provides awards based on Company performance over a three-year
performance period. USEC intends to start a new three-year performance period every three years.
The initial three-year performance period will be a shortened period and will begin March 1, 2006
and will end December 31, 2008 (total of 34 months). The next three-year performance period would
be January 1, 2009 through December 31, 2011 (total of 36 months), and so on.

Target Awards – A participant’s target award under the Plan for a performance period (the “Target
Award”) is equal to a specified number of Shares of USEC stock. The value of the Target Award for
a participant in the Plan for each three-year performance period is determined as a percentage of
base salary as in effect on the first day of the performance period. For the initial shortened
performance period of 34 months, the target percentage will be calculated as if the performance
period were the full three years. The applicable target percentage of base salary varies by level
in the organization as follows:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Value of the Target
	 	 	 	 	 	 	Award (based on a
	 	 	 	 	 	 	three-year
	 	 	Annualized value of the	 	performance period,
	 	 	Target Award	 	as a multiple of
	Level / Title	 	(as a multiple of Base Salary)	 	Base Salary)
	President / CEO
	 		100	%	 		300	%
	 
	 	 	 	 	 	 	 	 
	Senior Vice
President
	 		60	%	 		180	%
	 
	 	 	 	 	 	 	 	 
	Vice President
	 		15	%	 		45	%
	 
	 	 	 	 	 	 	 	 

Note that where an employee is not eligible for participation in the EIP for an entire performance
period and the employee’s award opportunity under the EIP is not otherwise forfeited, the value of
the participant’s Target Award will be determined by multiplying the value of the Target Award
(from the chart above, based on a three-year performance period) that would otherwise be applicable
by a fraction, the numerator of which is the number of whole months the employee was a participant
during the performance period and the denominator of which is the total number of months in the
applicable performance period. The base salary used to determine the value of the participant’s
Target Award will be the participant’s base salary in effect on the participant’s first day of
participation within the performance period.

The Target Award for a participant with respect to a performance period will be equal to the whole
number result when the value of the participant’s Target Award is divided by the average closing
price for a Share of USEC stock on the New York Stock Exchange each trading day during the last
full calendar month prior to the later of (1) the beginning of the applicable performance period
(i.e., each trading day during February 2006 for the performance period March 1, 2006 through
December 31, 2008; each trading day during December 2008 for the performance period January 1, 2009
through December 31, 2011; etc.) or (2) the date the participant first became a participant in the
EIP.

If, due to special circumstances, an employee of USEC who is not at one of the levels set forth
above becomes eligible to participate in the Plan, the applicable target percentage of base salary
for such individual will be determined by the Compensation Committee.

Performance Goals – At the beginning of each performance period, the Compensation Committee shall
determine, after consultation with and based on the recommendation of the CEO, the critical
financial and business performance goals with respect to which performance will be measured. The
goals should reflect what needs to be accomplished in an applicable performance period to ensure
achievement of the Company’s mid and long term strategic objectives and to maximize shareholder
value. The goals for each performance period may vary, but do not vary based on individual
performance. To the extent the Company wishes to satisfy the requirements of the exception to the
general deduction limit for compensation under Section 162(m) of the Internal Revenue Code of 1986,
as amended (the “Code”) for certain performance based compensation that is provided under Section
162(m) of the Code and applicable regulations and rulings thereunder, the performance goals
described in this section with respect to a performance period will be established in writing by
the Compensation Committee from the goals approved by shareholders under the Equity Incentive Plan
not later than 90 days after the commencement of the applicable performance period or, if
applicable, not after 25% of the performance period has elapsed.

Performance Measurement – The CEO will provide the Compensation Committee with periodic reports of
performance during the performance period. Following the completion of each performance period,
the CEO will review the achievement of the performance goals during that period and will rate the
performance. The Compensation Committee, at its first meeting following the completion of a
performance period, will then certify the performance results during that performance period and
approve or modify the CEO’s recommendations.

Except where performance is less than threshold performance, the range of performance approved by
the Compensation Committee, and therefore, the value of the award with respect to each participant
(the “Approved Award Percentage”), will be from a threshold minimum of 80% of the participant’s
Target Award for threshold performance (as such level is predetermined) to a maximum of 120% of the
participant’s Target Award for maximum performance at that predetermined level (target performance
would yield 100% of the Target Award). No award will be made for performance that is less than
threshold performance. Actual awards will be granted only following the Compensation Committee’s
certification of performance results. The performance measurement approved by the Compensation
Committee will be applied to the Target Award for that performance period for each participant.
As more fully described below, awards will be in the form of cash, vested and fully transferable
Shares of USEC stock or RSUs.

The Compensation Committee can exercise negative discretion concerning payout for any performance
period. While the threshold payment in the performance period is 80%, the Compensation Committee
may deem that a lower amount, including zero or no payment, is appropriate.

Timing of Payouts – Grantees will receive awards as soon as practicable after the end of the
applicable performance period, but in no event later than 21/2 months after the end of the applicable
performance period. The first awards under the Plan will be granted in the beginning of 2009
following the completion of the initial 2006-2008 performance period (assuming satisfaction of the
performance goals). After the first awards are granted in 2009, there will be subsequent grants
(assuming satisfaction of the performance goals) every third year thereafter as each subsequent
three-year performance period concludes.

Form of Payouts – Awards under the Plan with respect to a performance period are granted in one of
three forms:

	 	1.	 	Cash (in an amount equal to the product of (i) the Fair Market Value of a Share
(based on the closing sales price of the Company’s common stock on the NYSE on the date
paid), (ii) the Approved Award Percentage and (iii) the Target Award);

	 	2.	 	Shares of USEC common stock (with the number of such Shares equal to the product of
(i) the Approved Award Percentage and (ii) the Target Award); or

	 	3.	 	RSUs (with the number of such RSUs equal to the product of (i) the Approved Award
Percentage and (ii) the Target Award), ultimately settleable only in cash.

For employees who elect to receive cash or Shares of USEC stock with respect to a performance
period, the election by a participant to receive cash or Shares will be made by the participant at
the time of the award.

For employees who elect to receive RSUs with respect to a performance period, the election by a
participant to receive his or her award in the form of RSUs must be made no later than six months
prior to the end of the applicable performance period (i.e., June 30, 2008 for the March 1, 2006
through December 31, 2008 performance period), provided that no election will be permitted after
the award has become both substantially certain to be granted and payable in an amount that is
readily ascertainable. Where no such deferral election is made timely, the participant’s award
will be granted in the form of cash or Shares of USEC stock (as set forth above).

Treatment of RSUs – RSUs awarded under the EIP will be subject to the terms of the applicable award
agreement, such terms will include the following:

	 	1.	 	Settlement: Settlement of the RSUs will be delayed until the date the
participant incurs a “separation from service” as such term is defined for purposes of
Code Section 409A(a)(2)(A)(i) (a “Separation from Service”) or, if earlier, upon a Change
in Control of the Company (the earlier of the date of the participant’s Separation from
Service or the date of the Change in Control of the Company, the “Settlement Date”). In
general, as soon as practicable following the Settlement Date, a participant’s RSUs will
be settled in the form of cash. However, in no event will amounts be paid to a “specified
employee” (as such term is defined in Treas. Reg. §1.409A-1(i)) before the date that is
six months after the specified employee’s Separation from Service. The amount of cash
payable in settlement of a participant’s RSUs is equal to the product of (1) the Fair
Market Value of a Share of USEC stock on the Settlement Date multiplied by (2) the number
of RSUs then held by the participant.

	 	2.	 	Dividends: If the Company pays a dividend on Shares at any time between the
date RSUs are granted and the Settlement Date, the Company will grant an additional number
of RSUs (“Dividend Equivalent RSUs”) to each participant then holding RSUs in an amount
equal to (1) the product of (i) the dividend per Share payable with respect to such Shares
and (ii) the number of RSUs then held by the participant, divided by (2) the Fair Market
Value of a Share on such date.

	 	3.	 	Adjustment of Number of RSUs: The number of RSUs and Dividend Equivalent
RSUs will be subject to adjustment as provided in Section 4(b) of the Equity Incentive
Plan.

Administrative Issues

	 	•	 	Participants who leave the Company prior to the grant of an award with respect to a
performance period due to death, disability, involuntary Separation from Service by the
Company other than for Cause, or Retirement will receive an award valued and paid in the
form of cash or Shares of USEC stock, at the election of the participant (or, if
applicable, the participant’s beneficiary), at the end of the performance period. The
value will reflect pro-rata actual participation within the performance period.

	 	•	 	If the participant incurs a Separation from Service for any other reason (not set forth
in the bullet above), including a Separation from Service after the end of a performance
period but prior to an award being granted for such performance period, all unvested award
opportunities will be forfeited. If the participant is terminated by the Company for
Cause, all award opportunities will be forfeited

	 	 	 	whether or not vested, including any RSUs granted with respect to a performance period that had
not yet been settled as of the date of resignation.

	 	•	 	To receive any award, the participant must have been a participant for at least six (6)
full months during the performance period.

	 	•	 	Notwithstanding anything herein to the contrary, in the event of a Change in Control of
the Company, the Compensation Committee will immediately grant and payout awards for the
current performance period such that the date of the Change in Control shall be deemed to
be the end of the performance period for purposes of calculating and granting awards for
such performance period.  Such awards shall be calculated assuming achievement of all
applicable performance goals at target level.

	 	•	 	Notwithstanding anything herein to the contrary, the Compensation Committee may amend,
alter, suspend, discontinue or terminate the Plan or any portion thereof at any time,
subject to the terms of the Equity Incentive Plan, and the Compensation Committee may amend
or adjust awards under the Plan as provided in Section 15 of the Equity Incentive Plan.EX-10.2

EXHIBIT 10.2

USEC Inc.

Non-Employee Director Restricted Stock Unit Award Agreement

(Annual Retainers and Meeting Fees)

RESTRICTED STOCK UNIT AWARD AGREEMENT (the “Agreement”) dated as of      between
USEC Inc., a Delaware corporation (the “Company”) and      (the “Participant”):

R E C I T A L S:

The Company has adopted and maintains the USEC Inc. 1999 Equity Incentive Plan as amended from
time to time (the “Plan”), which Plan as amended from time to time is incorporated herein by
reference and made a part of this Agreement. Capitalized terms not otherwise defined herein shall
have the same meanings as in the Plan.

The Committee has determined that it is in the best interests of the Company and its
shareholders to grant the restricted stock unit awards provided for herein to the Participant
pursuant to the Plan and the terms set forth herein to further align the interests of non-employee
directors of the Company to the interests of shareholders.

This Agreement shall apply to restricted stock unit awards made from time to time after the
date hereof representing Participant’s annual retainers and meeting fees, as set forth on Exhibit A
hereto as such Exhibit A may be augmented from time to time.

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties
hereto agree as follows:

1. Grant of the Award(a) . (a) The Company from time to time will grant to the
Participant Awards (the “Awards”) of Restricted Stock Units (the “Restricted Stock Units”) in the
amounts, on the dates of grant, and labeled as “annual retainers and meeting fees,” in each case as
set forth in Exhibit A hereto, subject to the terms and conditions set forth in this Agreement and
the Plan.

(b) In addition, as of each date as of which the Company pays a dividend on Shares before the
date (the “Payment Date”) payment is due in respect of the Restricted Stock Units in accordance
with Section 2(a) hereof, the Company will grant to the Participant an additional number of
Restricted Stock Units (the “Dividend Equivalent Restricted Stock Units”) equal to (a) the product
of (i) the dividend per Share payable on the record date relating to such dividend payment date,
and (ii) the number of Restricted Stock Units held by the Participant on such dividend payment
date, divided by (b) the Fair Market Value of a Share on the dividend payment date. Dividend
Equivalent Restricted Stock Units shall become vested (or be forfeited) at the same time and on the
same conditions as the Restricted Stock Units to which they relate. Except as provided in this
Section 1(b) Dividend Equivalent Restricted Stock Units will be subject to all of the terms and
conditions of this Agreement and all references in this Agreement to Restricted Stock Units shall
include Dividend Equivalent Restricted Stock Units unless the context requires otherwise.

(c) The number of Restricted Stock Units and any Dividend Equivalent Restricted Stock Units
shall be subject to adjustment as provided in Section 4(b) of the Plan.

2. Vesting.

(a) Subject to subsection (b) below, the Participant’s rights in his or her Restricted Stock
Units shall become vested and nonforfeitable upon the first to occur of (i) the first annual
anniversary of the date of grant of such Restricted Stock Units, (ii) the date the Participant
attains eligibility for Retirement, (iii) the date the Participant has a Termination of Service
(defined below) by reason of death or Disability, or (iv) the date of a Change in Control of the
Company. Restricted Stock Units that are granted to a Participant on or after attainment of
eligibility for Retirement shall be vested and nonforfeitable immediately upon the date of grant.

(b) Notwithstanding subsection (a) above, in the event that the Participant has a Termination
of Service for Cause, all Restricted Stock Units held by the Participant as of the date of such
termination of service shall be canceled and forfeited for no consideration on the date of the
Participant’s Termination of Service.

3. Settlement of Restricted Stock Units.

(a) As soon as practicable after the Participant’s Termination of Service, or if earlier as
soon as practicable after a Change in Control, the Company shall pay to the Participant (or his or
her beneficiary, if applicable) other than following a Change in Control, Shares (or if applicable,
the per-Share equivalents of securities of the surviving entity of any merger, consolidation or
other transaction or event having a similar effect, which are substituted for a Shares pursuant to
Section 4(b) of the Plan) equal to the aggregate number of Restricted Stock Units then held by the
Participant.

(b) For purposes of this Agreement a “Termination of Service” means that the Participant is no
longer a member of the Board and has undergone a good-faith and complete termination of all
arrangements to perform services for the Company in any capacity, which termination constitutes a
“separation from service” within the meaning of Section 409A(a)(2)(i) of the Code.

4. Nontransferability. Except under the laws of descent and distribution, the
Participant shall not be permitted to sell, transfer, pledge or assign the Restricted Stock Units
or any rights under this Agreement. Without limiting the generality of the foregoing, the
Restricted Stock Units and the Participant’s rights under this Agreement may not be assigned,
transferred, pledged, hypothecated or disposed of in any way, shall not be assignable by operation
of law, and shall not be subject to execution, attachment or similar process. Any attempted
assignment, transfer, pledge, hypothecation or other disposition of the Restricted Stock Units of
the Participant’s rights under this Agreement contrary to the provisions hereof, and the levy of
any execution, attachment or similar process upon them, shall be null and void and without effect.

5. Beneficiary. The Participant may designate a beneficiary or beneficiaries (which
beneficiary may be an entity other than a natural person) to receive any payments hereunder which
may be made following the Participant’s death. Such designation may be changed or canceled at any
time without the consent of any such beneficiary. Any such designation, change or cancellation
must be made in a form and manner established by the Committee and shall not be effective unless
and until received by the Committee during the Participant’s lifetime. If no beneficiary has been
named, or the designated beneficiary or beneficiaries shall have predeceased the Participant or (if
other than a natural person) failed or ceased to exist, the beneficiary shall be the Participant’s
spouse or, if no spouse survives the Participant, the Participant’s estate. If the Participant
designates more than one beneficiary, the rights of such beneficiaries shall be payable in equal
shares with right of survivorship, unless the Participant has designated otherwise.

6. No Rights as Stockholder. A Participant shall have no right to vote Shares
represented by Restricted Stock Units and shall have no rights as a stockholder of the Company with
respect to Restricted Stock Units unless and until Shares are delivered to the Participant in
settlement of the Restricted Stock Units pursuant to Section 3.

7. No Right to Continued Service. Neither the Plan nor this Agreement shall confer on
the Participant any right to continued service with the Company.

8. Legal Requirements. The Company shall not be obligated to make any payment
hereunder if the Committee, in its sole discretion, determines that the issuance or transfer of
such cash, Shares or other consideration might violate any applicable law or regulation (including
applicable non-U.S. laws or regulations) or entitled the Company to recover the same under Section
16. Without limiting the generality of the foregoing, no Award granted hereunder shall be
construed as an offer to sell securities of the Company, and no such offer shall be outstanding,
unless and until the Committee in its sole discretion has determined that any such offer, if made,
would be in compliance with all applicable requirements of the U.S. federal or non-federal
securities laws and any other laws to which such offer, if made, would be subject. The Company
shall be under no obligation to register any Shares or other property pursuant to the Securities
Act of 1933, as amended, or any other federal or state securities laws on account of the
transactions contemplated by this Agreement.

9. No Trust Fund Created. Neither this Agreement nor any of the transactions
contemplated hereby shall create or be construed to create a trust or separate fund of any kind or
a fiduciary relationship between the Company or any Affiliate and the Participant or any other
Person. To the extent that any Person acquires a right to receive payments from the Company or any
Affiliate pursuant to this Agreement, such right shall be no greater than the right of any
unsecured general creditor of the Company or any Affiliate.

10. No Fractional Shares. Dividend Equivalent Restricted Stock Units shall be
determined and granted in fractional Restricted Stock Units where required by Section 1(b) but no
fractional Shares shall be issued or delivered pursuant to this Agreement; and on settlement of a
Participant’s Restricted Stock Units the value of any fractional shares shall be paid to the
Participant in cash.

11. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware, without regard to the conflicts of laws provisions thereof.

12. Amendments. This Agreement may be amended or modified at any time by an
instrument in writing signed by the parties hereto, or by an instrument in writing signed
unilaterally by the Company if the Company determines that such amendment is required by law
(including any amendment necessary or desirable to avoid the gross income inclusion set forth
within Section 409A(a)(1)(A) of the Code or the interest and additional tax set forth within
Section 409A(a)(1)(B) of the Code, or otherwise to comply with or obtain for the Participant or the
Company any benefits, or avoid for the Participant or the Company any penalties or additional
taxes, under the Code or other revenue law).

13. Notices. Any notice, request, instruction or other document given under this
Agreement shall be in writing and shall be addressed and delivered, in the case of the Company, to
the Secretary of the Company at the principal office of the Company and, in the case of the
Participant, to the Participant’s address as shown in the records of the Company. Either the
Participant or the Company may change such party’s address for notices by notice duly given
pursuant to this Section.

14. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be an original but all of which together shall represent one and the same agreement.

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement. By
execution and delivery of this Agreement, the Participant acknowledges receipt of a copy of the
Plan.

USEC Inc.

By:

Its:

Participant Signature

Print Name

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