Document:

exv10w34

 

EXHIBIT 10.34

UNITED STATES DEPARTMENT OF ENERGY

WASHINGTON, D.C. 20585

NONEXCLUSIVE PATENT LICENSE

This LICENSE made this 7th day DECEMBER, 2006, by and between the United
States of America, as represented by the United States Department of Energy
(hereinafter “LICENSOR” or “DOE”) and USEC Inc. (hereinafter called “LICENSEE”).
(Each of the LICENSOR and the LICENSEE a “Party” and collectively the “Parties”.)

	 	 	 
	ADDRESS OF LICENSEE:

	 	6903 Rockledge Drive
	 

	 	Bethesda, MD 20817
	 
	 	 
	LICENSED INVENTIONS:

	 	Inventions owned by DOE or in which DOE has
the right to license or otherwise grant the
right to use that were made or conceived by
DOE employees or by DOE contractor or
subcontractor employees under contracts or
subcontracts awarded by DOE or by its Oak
Ridge, Tennessee facilities contractors, that
pertain to the enrichment of uranium using
gas centrifuge technology, including the
design and fabrication of gas centrifuge
machines and related systems. See Exhibit
A, List of LICENSED INVENTIONS. If either
Party becomes aware of additional inventions
owned by DOE that pertain to gas centrifuge
technology or systems related thereto that
LICENSEE may desire to use for enriching
uranium using gas centrifuge technology, DOE
agrees to take reasonable steps to add those
inventions to this LICENSE, subject to any
licenses that may exist for those inventions.
	 
	 	 
	LICENSE TERM:

	 	This LICENSE shall be effective upon the
execution of this LICENSE by both Parties and
shall terminate upon the (i) termination or
expiration of the DOE lease for facilities
used by the LICENSEE for its centrifuge plant
and return of such facilities to DOE or, if
LICENSEE utilizes the LICENSED INVENTIONS on
property not leased from DOE, then upon

 

 

	 	 	 
	 

	 	termination of operations and
completion of decontamination and
decommissioning of the facility
utilizing the LICENSED
INVENTIONS; (ii) upon the
expiration of all patents on
LICENSED INVENTIONS; or (iii) as
provided by Paragraph 15 hereto,
whichever is earlier. This
LICENSE shall be conditioned on
LICENSEE’s acquiring and
maintaining a License from the
Nuclear Regulatory Commission for
the operation of a gas centrifuge
facility. To the extent LICENSEE
wants to extend the term of this
LICENSE, a grant of an extension
will not be withheld
unreasonably.
	 
	 	 
	SCOPE OF LICENSE:

	 	Nonexclusive license for
LICENSEE’s use or manufacture (or
use or manufacture on the
LICENSEE’s behalf) of the
LICENSED INVENTIONS for the
enrichment of uranium in the
U.S., or the sale of enriched
uranium products, and using the
LICENSED INVENTIONS in accordance
with the Advanced Technology
Demonstration and Deployment
milestones contained in Article 3
of the June 17, 2002 Agreement
Between DOE and LICENSEE (the
“June 17, 2002 Agreement”).

WITNESSETH:

WHEREAS: LICENSOR is the owner of or has the right to grant a license
in the above-identified LICENSED INVENTIONS.

WHEREAS: LICENSEE desires to obtain a nonexclusive license in the
above-identified LICENSED INVENTIONS.

WHEREAS: The licensing of said LICENSED INVENTIONS under the terms provided
herein is determined to be in the public interest and is in accordance with
the policy of the regulations on licensing of government-owned inventions, 37
C.F.R. Part 404, as promulgated under the authority of Section 208 of Pub. L.
96-517, (35 U.S.C. 208) and 10 C.F.R. Part 781.

NOW, THEREFORE, in consideration of the foregoing premises and of the
mutual covenants and obligations hereinafter contained, and other good and
valuable consideration, the Parties hereto agree as follows:

2

 

1. LICENSOR hereby grants to LICENSEE and LICENSEE hereby accepts, subject to the terms and
conditions herein recited, a non-exclusive license to the LICENSED INVENTIONS (as specified herein)
for the LICENSE TERM (as specified herein) solely for the purposes specified by the SCOPE OF
LICENSE.

2. LICENSEE agrees to carry out the plan for development, using and/or marketing of the LICENSED
INVENTIONS as provided for in the June 17, 2002 Agreement, and thereafter to continue to make the
benefits of the LICENSED INVENTIONS reasonably accessible to the public through the production
and/or sales of uranium enrichment or enriched uranium products utilizing the LICENSED INVENTIONS.

3. For the sole purpose of operating facilities within the U.S. and in accordance with the June 17,
2002 Agreement, this LICENSE may extend to subsidiaries that are controlled by the LICENSEE, but it
is not assignable or otherwise transferable without approval of LICENSOR in writing, which approval
will not be withheld unreasonably. No request will be approved unless, at a minimum, the assignee
or transferee is a U.S. company that is a successor of that part of
the LICENSEE’s business to
which the LICENSED INVENTIONS pertain, and the U.S. Company meets applicable FOCI, security
clearance, and facility clearance requirements. If LICENSEE extends this LICENSE to a subsidiary,
LICENSEE shall promptly notify the LICENSOR in writing. Subject to
LICENSOR’s approval in writing,
LICENSEE may grant sublicenses in the LICENSED INVENTIONS.

4. LICENSEE agrees that any centrifuge machines and major components thereof embodying the LICENSED
INVENTIONS or produced through the use of the inventions will be manufactured substantially in the
United States and that any enrichment of uranium performed using centrifuge machines embodying the
LICENSED INVENTIONS will be performed in the U.S.

5. LICENSEE shall submit periodic written reports, annually within 30 days of the anniversary date
of this LICENSE, and such other reports as reasonably requested by the LICENSOR, on its efforts to
bring the LICENSED INVENTIONS to a point of practical application, with particular reference to the
Milestones set forth in the June 17, 2002 Agreement, and the extent to which the LICENSEE
thereafter continues to make the benefits of the inventions reasonably accessible to the public.
Subject to compliance with this paragraph, LICENSEE may satisfy these reporting requirements
through the reporting requirements in Article 3 of the June 17, 2002 Agreement with a copy to
LICENSOR pursuant to Paragraph 18 of this LICENSE.

6. ROYALTY PROVISIONS:

     The LICENSEE agrees to pay to the LICENSOR the royalty amount specified in Exhibit B hereto.
At the request of the LICENSEE, LICENSOR will consider in good faith a request by LICENSEE to
modify the royalty payments due under this LICENSE based

3

 

on a substantial change in business or market conditions. Additionally, upon written request by
USEC, not later than sixty days before royalty payments become due and payable, DOE may approve a
request to adjust the royalties due under the LICENSE in any given year: (1) where third parties
assert a claim for patent infringement against USEC, the alleged infringement necessarily arises
out of the practice of the DOE-owned licensed inventions and USEC incurs costs in defending against
such claim; or (2) where USEC owes royalties to third parties for use of third party-owned patents
that are necessary for the practice of the DOE-owned licensed inventions. Except as provided in
this Section 6 there shall be no other royalty, fee, or other charge or cost due or payable by
LICENSEE for this LICENSE or for the use of the LICENSED INVENTIONS or data provided under this
LICENSE.

7. LICENSEE shall pay to LICENSOR, on or before April 1 of each year, any royalty or other payments
due and payable under this Agreement for use of the LICENSED INVENTIONS during the preceding
calendar year. LICENSEE shall keep true books of account containing an accurate record of all data
necessary for the computation of any fees payable under this LICENSE, and shall render to LICENSOR
annually, on or before April 1 of each year, an accurate statement of performance under the
LICENSE, whether or not royalties, other than the annual fees, are due and payable under the
LICENSE. Such a statement shall be in writing, showing in reasonable detail the identification of
SWU produced using the LICENSED INVENTIONS and sold during the previous year. The statement shall
include the computation of the license fees and royalties due and payable. LICENSEE shall from time
to time permit the LICENSOR, by its authorized representative, to examine the books of account of
LICENSEE to such an extent as may be reasonably necessary for LICENSOR to determine the accuracy of
any such statement.

8. LICENSEE shall promptly report to LICENSOR any change in mailing address, name, or company
affiliation during the period of this LICENSE, and LICENSEE shall promptly report any decision to
discontinue producing enriched uranium or providing uranium enrichment using centrifuge machines
embodying the LICENSED INVENTIONS in the U.S.

9. LICENSOR makes no warranty or representation as to the validity or patentability of any LICENSED
INVENTIONS or that the exercise of this LICENSE will not result in the infringement of any
patent(s), nor shall LICENSOR assume any liability whatsoever resulting from the exercise of this
LICENSE.

10. LICENSOR makes no representations, extends no warranties of any kind, either express or
implied, and assumes no responsibilities whatever with respect to manufacture, use, sale, or other
disposition by LICENSEE, or its vendees or transferees, of products incorporating or made by use of
LICENSED INVENTIONS.

11. LICENSEE will indemnify and hold harmless LICENSOR for any liability arising

4

 

from activity under this LICENSE by LICENSEE, its agents, employees or contractors at any tier. In
the event of any inconsistency between this indemnification provision and any provision in the
lease by the LICENSEE of the DOE facilities used by the LICENSEE for its centrifuge plant using the
LICENSED INVENTIONS then the provisions of the lease will govern.

12. The grant of this LICENSE or anything related thereto shall not be construed to confer on any
person any immunity from or defenses under the antitrust laws or from a charge of patent misuse,
and the acquisition and use of rights pursuant to this LICENSE shall not be immunized from the
operation of State or Federal law by reason of the source of the grant.

13. Nothing contained in this LICENSE shall be interpreted to give to LICENSEE any rights with
respect to any invention(s) other than the LICENSED INVENTIONS.

14. If the LICENSE involves application(s) for Letters Patent, LICENSOR makes no representation or
warranty that Letters Patent will issue on such patent application(s).

15. Subject to the notice and cure provisions in Paragraphs 17 and 20, this LICENSE may be
terminated by LICENSOR in whole or in part (a) if DOE determines that LICENSEE is not complying
with Article 3 of the June 17, 2002 Agreement, and that, in accordance with the terms of the June
17, 2002 Agreement DOE terminates the June 17, 2002 Agreement, (b) for failure to make any payments
or periodic reports required by this LICENSE, (c) for willfully making a false statement or willful
omission of a material fact in the LICENSE application which resulted in this LICENSE or in any
required report, (d) for substantial breach of any covenant or agreement contained herein, or (e)
if DOE determines that such action is necessary to meet requirements for public use as specified by
Federal regulations issued after the date of this LICENSE, and such requirements are not reasonably
satisfied by the LICENSEE. The Parties agree that the construction and operation of a uranium
enrichment facility in accordance with the June 17, 2002 Agreement reasonably satisfy the
requirements for public use.

16. This LICENSE is contingent on LICENSEE having a valid authorization to have access to
Classified Information. It is LICENSEE’S duty to safeguard all Classified Information, special
nuclear material (SNM), and Unclassified Controlled Nuclear Information (UCNI) in compliance with
applicable laws and regulations. LICENSEE shall, in accordance with applicable DOE or NRC security
regulations and requirements, be responsible for safeguarding all Classified Information, UCNI, and
for protection against sabotage, espionage, loss and theft, of the classified documents and
material in LICENSEE’S possession in connection with the performance of work under this License.
Except as otherwise expressly provided, LICENSEE shall, upon termination of the June
17, 2002 Agreement, or upon permanent cessation of the operations of any facility that
incorporates the LICENSED INVENTIONS, transmit to DOE or dispose in accordance
with applicable DOE or NRC regulations any classified matter or UCNI in the
LICENSEE’S possession or in the possession of any person under LICENSEE’S control

5

 

in connection with performance under this LICENSE. Failure to comply with applicable laws and
regulations governing the safeguard of classified information, SNM, or UCNI may result in
termination of this LICENSE.

17. Before terminating this LICENSE, in whole or in part, for any cause, LICENSOR shall furnish
LICENSEE a written notice of LICENSOR’S intention to terminate this LICENSE, with reasons
therefore, and LICENSEE shall be allowed sixty (60) days from the date of the mailing of such
notice to remedy any breach of any term or condition referred to in the notice, or to show cause
why the LICENSE should not be so terminated.

18. Notices. In order to be effective, any notice, demand, offer, response, request or other
communication made with respect to this LICENSE must be in writing and signed by the Party
initiating the communication and must be hand-delivered or sent by registered letter, telefax or by
a recognized overnight delivery service that requires evidence of receipt, to the addresses
specified herein for the other Party. The effective date of any communication shall be the date of
the receipt of such communication by the addressee.

Notices shall be sent to:

For the LICENSOR:

Office of the Assistant General Counsel

for Technology Transfer

and Intellectual Property 

U.S. Department of Energy

1000 Independence Ave., S.W.

Washington, DC 20585

Fax: (202) 586-2805

6

 

For the LICENSEE:

USEC Inc.

6903 Rockledge Drive

Bethesda, MD 20817

Fax:(301)564-3206

The Parties have the right to change the place to which notices or communications are sent or
delivered by similar notice sent or delivered to the other Party.

19. In the event of any judicial or administrative proceeding challenging the validity or
patentability of LICENSED INVENTIONS, LICENSOR shall promptly provide notice thereof to LICENSEE.
LICENSEE and LICENSOR shall, within thirty (30) days of said notice, mutually agree on an
appropriate level of cost-sharing of direct and indirect expenses that may be involved in
participating in defending the validity of LICENSED INVENTIONS. If mutual agreement cannot be
reached within said thirty day period, LICENSEE, at its option, may undertake any action in defense
of the validity of the LICENSED INVENTIONS at its own expense and, at LICENSEE’S request, LICENSOR
agrees to cooperate with LICENSEE in such actions, subject to the reimbursement by LICENSEE of all
LICENSOR’S costs incurred at the request of LICENSEE. If mutual agreement cannot be reached as to
cost sharing and LICENSEE does not take action to defend the validity, then LICENSOR may take any
action at its discretion concerning the subject matter thereof, including allowing the LICENSED
INVENTIONS to lapse.

20. LICENSEE has a right to appeal, in accordance with procedures specified in 10 CFR 781, any
decision concerning the modification or termination, in whole or in part, of this LICENSE.

21. LICENSEE may terminate this LICENSE, after the first or any subsequent anniversary date of this
LICENSE, upon not less than sixty (60) days prior written notice to the LICENSOR.

22. LICENSEE is responsible for compliance with all applicable Federal, state and local regulatory
requirements, including, without limitation, compliance with U.S. Export Control statutes and
regulations.

23. To the extent practicable, LICENSEE shall mark all licensed products in accordance
with the statutes of the United States relating to the marking of patented articles (35
U.S.C. 287) as applicable.

7

 

24. In addition, to the extent consistent with security and classification requirements
and restrictions, and subject to any access permit requirements and compliance with its terms,
LICENSOR grants to LICENSEE the right to reproduce, modify and use technical data related to the
gas centrifuge technology for uranium enrichment applications owned by DOE or in which DOE has the
right to license or otherwise grant the right to use.

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

	 	 	 	 	 
	UNITED STATES DEPARTMENT OF ENERGY

 	 	 
	 	 	BY:  	
 	 
	 	 	 	Paul A. Gottlieb      	 
	 	 	 	Assistant General counsel

for Technology Transfer

and Intellectual Property 	 
	 

	 	 	 
	WITNESS:

	 	     
	 
	 	 
	
 

	 	     
     

	 	 	 	 	 
	 	 	USEC, Inc.:

 
	 	 	BY:  	
 	 
	 	 	 	Phillip G. Sewell      	 
	 	 	 	Senior Vice President

American Centrifuge and Russian HEU 	 
	 

	 	 	 
	WITNESS:

	 	     
	 
	 	 
	
 

	 	     
     

8

 

Exhibit A

LICENSED INVENTIONS

	 	 	 
	DOE CASE FILE NO.	 	 
	(S-NUMBER)	 	TITLE OF INVENTION
	 
	 	 
	27604

	 	Baffle for Gas Centrifuges
	 
	 	 
	27701

	 	Baffle Rotor Assembly for Gas Centrifuge
	 
	 	 
	30005

	 	Magnetic Suspension of Centrifuge Rotors
	 
	 	 
	30824

	 	Centrifuge Drive System
	 
	 	 
	31130

	 	Supercritical Centrifuge Bearing System
	 
	 	 
	31133

	 	Improved Baffle for Gas Centrifuge
	 
	 	 
	31607

	 	Damping System for Gas Centrifuge
	 
	 	 
	32496

	 	Subcritical and Supercritical Gas Centrifuge Drive System and Method
	 
	 	 
	33393

	 	Damper-suspension System for Centrifuge
	 
	 	 
	34064

	 	Cut-control System for Gas Centrifuge
	 
	 	 
	34622

	 	Suspension System for Supercritical Centrifuge
	 
	 	 
	34623

	 	Damped Suspension System for Centrifuge
	 
	 	 
	35429

	 	Improved End Cap for Centrifuges
	 
	 	 
	36433

	 	Rotor Assembly for Gas Centrifuge
	 
	 	 
	36453

	 	End Cap-baffle Assembly for Gas Centrifuge
	 
	 	 
	38691

	 	Rotor Assembly for Gas Centrifuge
	 
	 	 
	39555

	 	High Speed End Closure for Gas Centrifuge Rotor Tube
	 
	 	 
	39571

	 	Damper Suspension System for High-speed Gas Centrifuge
	 
	 	 
	40315

	 	Gas Removal System for Gas Centrifuge
	 
	 	 
	40321

	 	Damped-suspension System for Gas Centrifuge
	 
	 	 
	42323

	 	Gas Centrifuge
	 
	 	 
	42366

	 	Top Bearing for Gas Centrifuge Rotor
	 
	 	 
	42981

	 	Process Gas Control System for Gas Centrifuge
	 
	 	 
	43729

	 	Cut-control System for Gas Centrifuge

Page 1  of 5

 

Exhibit A

LICENSED INVENTIONS

	 	 	 
	DOE CASE FILE NO.	 	 
	(S-NUMBER)	 	TITLE OF INVENTION
	 
	 	 
	43732

	 	Gas Centrifuge Drive System
	 
	 	 
	43775

	 	Cascade Arrangement for Gas Centrifuge
	 
	 	 
	43786

	 	Top Suspension for Gas Centrifuge Rotor
	 
	 	 
	44149

	 	Suspension System for Gas Centrifuge
	 
	 	 
	44199

	 	Damped Suspension System for Centrifuge
	 
	 	 
	45124

	 	Gas Centrifuge
	 
	 	 
	45162

	 	Gas Centrifuge Seal
	 
	 	 
	45188

	 	Centrifuge Malfunction Detection System
	 
	 	 
	45190

	 	Bottom Suspension System for Gas Centrifuge
	 
	 	 
	45191

	 	Method and Apparatus for Producing End Closures for Gas Centrifuge
	 
	 	 
	45192

	 	Tube Fabrication Facility
	 
	 	 
	45194

	 	Gas Centrifuge
	 
	 	 
	45711

	 	Gas Centrifuge End Cap Assembly
	 
	 	 
	45716

	 	Vacuum Seal
	 
	 	 
	45741

	 	Damped Suspension System for Centrifuge
	 
	 	 
	45759

	 	Gas Centrifuge Having Improved Operating Characteristics
	 
	 	 
	46508

	 	Gas Centrifuge Mount
	 
	 	 
	46509

	 	Method of Operating Gas Centrifuges to Provide Improved Separative Capacity
	 
	 	 
	46538

	 	Suspension System for Gas Centrifuge
	 
	 	 
	47104

	 	Centrifuge Malfunction Detection System
	 
	 	 
	47134

	 	Gas Centrifuge Scoop Assembly
	 
	 	 
	47893

	 	End Cap and Baffle Configuration for a Gas Centrifuge
	 
	 	 
	49065

	 	Suspension System for Centrifuge
	 
	 	 
	50033

	 	Top Suspension for Gas Centrifuge Rotor

Page 2  of 5

 

Exhibit A

LICENSED INVENTIONS

	 	 	 
	DOE CASE FILE NO.	 	 
	(S-NUMBER)	 	TITLE OF INVENTION
	 
	 	 
	52973

	 	Lower Suspension System for Gas Centrifuge
	 
	 	 
	56316

	 	Means for Increasing Separative Capacity of Gas Centrifuge
	 
	 	 
	56557

	 	Rotor Tube/for Gas Centrifuge
	 
	 	 
	57541

	 	Scoop-development Apparatus for Gas Centrifuges
	 
	 	 
	58549

	 	Gas Centrifuge Baffle Structure and Method for Making Same
	 
	 	 
	58551

	 	Method for Increasing the Separative Performance of a Gas Centrifuge
	 
	 	 
	59959

	 	Lower Suspension Vapor Seal for Gas Centrifuge

LICENSOR has related technology, other than LICENSED INVENTIONS, in the form of
invention disclosures for which patent protection was not pursued, and in the
form of patent applications that were abandoned during prosecution, that are
listed below. LICENSEE may utilize that technology within the scope of activity
under this LICENSE.

	 	 	 
	DOE CASE FILE NO.	 	 
	(S-NUMBER)	 	TITLE OF INVENTION
	 
	 	 
	23190

	 	Application of the Gas Centrifuge as an Instrument
	 
	 	 
	24899

	 	Ultra Fast Freezing of Centrifuge Particles
	 
	 	 
	25933

	 	Dipolar-seal Centrifuge Rotor
	 
	 	 
	25981

	 	Seal for Centrifuge
	 
	 	 
	27607

	 	Centrifuge Core
	 
	 	 
	27736

	 	Ultracentrifuge for Liquids
	 
	 	 
	30099

	 	Seal for Low-speed Liquid Centrifuges
	 
	 	 
	30805

	 	Centrifuge Instrumentation for Registering
	 
	 	 
	30815

	 	Upper Damped Bearing for High Speed Centrifuges
	 
	 	 
	30827

	 	Damper Mechanism for Gas Centrifuge
	 
	 	 
	30869

	 	Semicontinuous Flow Centrifuge Rotor

Page 3  of 5

 

Exhibit A

LICENSED INVENTIONS

	 	 	 
	DOE CASE FILE NO.	 	 
	(S-NUMBER)	 	TITLE OF INVENTION
	 
	 	 
	30893

	 	Method for Lining a Centrifuge Rotor
	 
	 	 
	31602

	 	Band-scanner for Liquid Centrifuges
	 
	 	 
	32428

	 	Centrifuge for Saline Water Purification
	 
	 	 
	32466

	 	Interferometer for the Measurement of Sedimentation in an Ultracentrifuge
	 
	 	 
	34602

	 	Multi-shell High Speed Centrifuge
	 
	 	 
	34640

	 	Scoop-positioner for Gas Centrifuge
	 
	 	 
	36446

	 	Centrifuge Rotor Axial
	 
	 	 
	36447

	 	Modal Balancing Supercritical Centrifuge Rotors
	 
	 	 
	37236

	 	High-speed End Closure for Gas Centrifuge Rotor Tube
	 
	 	 
	39519

	 	Centrifuge Rotor and Method Fabrication
	 
	 	 
	45178

	 	Apparatus for Manufacture of Centrifuge Rotors
	 
	 	 
	45179

	 	Gas Centrifuge Rotor
	 
	 	 
	45717

	 	Tube Cutter
	 
	 	 
	46552

	 	Apparatus
	 
	 	 
	46553

	 	Centrifuge Arrangement
	 
	 	 
	46559

	 	Cascade Design for Asymetrically Operating Gas Centrifuge
	 
	 	 
	47814

	 	Centrifuge Balance
	 
	 	 
	47816

	 	Centrifuge/cascade Control System
	 
	 	 
	49057

	 	Sample Collection Ring for a Multisample Centrifuge
	 
	 	 
	52159

	 	Gas Centrifuge Design
	 
	 	 
	52995

	 	Centrifuge Center Support
	 
	 	 
	54055

	 	Dynamic Controller for Centrifuge
	 
	 	 
	54898

	 	Method for Improving Seismic Capability of Centrifuge Machines
	 
	 	 
	56507

	 	Countercurrent Flow Generation in a Gas Centrifuge
	 
	 	 
	56512

	 	Centrifuge Rotor

Page 4  of 5

 

Exhibit A

LICENSED INVENTIONS

	 	 	 
	DOE CASE FILE NO.	 	 
	(S-NUMBER)	 	TITLE OF INVENTION
	 
	 	 
	56542

	 	Proposed Method of Reducing Centrifuge Cap Stress
	 
	 	 
	56545

	 	Proposed Method of Increasing the Separative Power of Gas Centrifuges
	 
	 	 
	56546

	 	Proposed Method for Measuring Centrifuge Motor Cap
	 
	 	 
	58017

	 	Gas Centrifuge Fidler Signal Simulator
	 
	 	 
	59975

	 	Centrifuge Rotor Repair Device
	 
	 	 
	60527

	 	Light Gas Removal System for Operating Gas Centrifuge Machines
	 
	 	 
	60902

	 	Gas Extractor for a Gas Centrifuge (Livermore)
	 
	 	 
	61173

	 	Safety Pressure-relief Device for Centrifuges
	 
	 	 
	61830

	 	Vertical Travel Linkage System for Gas Centrifuges
	 
	 	 
	61856

	 	Design for Centrifuge Rotor End Caps
	 
	 	 
	61876

	 	Direction of Rotating Verification Technique for Gas Centrifuge Machines
	 
	 	 
	62535

	 	Improved Gas Centrifuge Drive Mechanism
	 
	 	 
	63508

	 	Improved Rotor Design for Advanced Gas Centrifuge Machines
	 
	 	 
	63533

	 	Centrifuge Fabrication Method
	 
	 	 
	63602

	 	Circulation Drive for Gas Centrifuge
	 
	 	 
	65929

	 	Process Gas Seal for Centrifuge Machine

Page 5  of 5

 

Exhibit B

Royalty Payments

1. Definitions

The following terms when capitalized and used in this LICENSE shall have the meanings
specified below:

“Gas Centrifuge Annual Gross Revenue” shall mean the gross revenues (excluding any taxes) resulting
from sales of Separative Work Units (SWU) production from an American Centrifuge Plant and any
other SWU production resulting from LICENSEE‘S use of the LICENSED INVENTIONS during the calendar
year. For clarification, the following SWU amounts would not be included (i) SWU produced
using the gaseous diffusion process; (ii) SWU purchased by LICENSEE under the Russian HEU agreement
or from third parties; (iii) SWU obtained from HEU; (iv) SWU inventory as of January 1, 2009,
including any existing Paducah GDP SWU inventory, Russian HEU and US HEU inventory. Further,
revenue resulting from the sale of uranium, conversion services or other services or products are
not included.

“Separative Work Unit” or “SWU” is a unit of measurement of the effort needed to separate the U-235
and U-238 atoms in natural uranium in order to create a final product that is richer in U-235
atoms.

2. Amount of Annual Royalty

Subject to paragraph 3 below, for each calendar year commencing on or after January 1, 2009 USEC
shall pay an annual royalty equal to:

a) $100,000.00 for any Gas Centrifuge Annual Gross Revenue that is equal to or less than
$110,000,000.00; plus

b) One percent (1%) of the Gas Centrifuge Annual Gross Revenue for any Gas Centrifuge Annual
Gross Revenue that is greater than $110,000,000.00 and less than or equal to $400,000,000.00;
plus

c) Two percent (2%) of the Gas Centrifuge Annual Gross Revenue for any Gas Centrifuge Annual
Gross Revenue that is greater than $400,000,000.00 and less than or equal to $600,000,000.00;
plus

d) One percent (1%) of the Gas Centrifuge Annual Gross Revenue for any Gas Centrifuge Annual
Gross Revenue that is greater than $600,000,000.00.

No royalty shall be due or payable for any SWU produced or sold prior to January 1, 2009.

3. Maximum Cumulative Royalty

The maximum cumulative royalty due or payable under this LICENSE shall be $100,000,000.00. When the
LICENSEE has paid $100,000,000.00 in royalties under this LICENSE then this LICENSE shall continue
royalty-free thereafter.exv10w56

 

EXHIBIT 10.56

SUMMARY SHEET FOR 2007 NON-EMPLOYEE DIRECTOR COMPENSATION

     The following table sets forth the compensation for USEC’s non-employee directors for the term
commencing at the 2007 annual meeting of shareholders to be held on April 26, 2007:

	 	 	 
	Annual Retainer

	 	$65,000 paid at the beginning of
the service year. Until a
director has satisfied USEC’s
director stock ownership
guidelines (numerical stock
ownership target equal to five
times the annual retainer), at
least 50% of the retainer is paid
in the form of restricted stock
units, although a director may
elect to receive a greater
proportion of the retainer in
restricted stock units. Once a
director has satisfied USEC’s
director stock ownership
guidelines, director is entitled
to receive the entire annual
retainer in cash, although a
director may elect to receive the
retainer in restricted stock units
in lieu of cash.
	 
	 	 
	Committee Chairman Fees

	 	$12,000 annual fee for Audit,
Finance and Corporate
Responsibility Committee chairman.
$7,500 annual fee for all other
committees’ chairman. Committee
chairman fee paid in cash or
restricted stock units, at the
director’s election, at the time
the annual retainer is paid.
	 
	 	 
	Board Meeting Fees

	 	$2,000 for each Board of Directors
meeting attended. Meeting fees
are paid in cash in the week
following the meeting or, at the
director’s election, in restricted
stock units in the month following
each meeting.
	 
	 	 
	Committee Meeting Fees

	 	$1,500 for each committee meeting
attended. Meeting fees are paid
in cash in the week following the
meeting or, at the director’s
election, in restricted stock
units in the month following each
meeting.
	 
	 	 
	Annual Restricted Stock Unit Grant

	 	Annual grant of restricted stock
units valued at $50,000 granted at
the time the annual retainer is
paid. Restricted stock units vest
on the first to occur of: (1) one
year from the date of grant, (2)
termination of the director’s
service by reason of Retirement,
death or disability, or (3) a
change in control.
	 
	 	 
	Incentive Restricted Stock Unit Awards

	 	If a director chooses to receive
restricted stock units as payment
for the part of the annual
retainer, chairman and meeting
fees that they are otherwise
entitled to receive in cash, he or
she will receive an incentive
payment of restricted stock units
equal to 20% of the portion of the
annual retainer, chairman and
meeting fees that the director
elects to take in restricted stock
units in lieu of cash. These
incentive restricted stock units
will vest on the first to occur
of: (1) three years from the date
of grant, (2) termination of the
director’s service by reason of
Retirement, death or disability,
or (3) a change in control.
Incentive restricted stock units
are granted at the time the annual
retainer is paid.

     All restricted stock units are granted pursuant to the USEC Inc. 1999 Equity Incentive Plan,
as amended, and are subject to the terms of such plan and the applicable restricted stock unit
award agreements approved for issuance of restricted stock units to non-employee directors under
the plan. Restricted stock units carry the right to receive dividend equivalent restricted stock
units to the extent dividends are paid by the Company.

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