Document:

exv10w54

 

EXHIBIT 10.54

USEC Inc.

Non-Employee Director Restricted Stock Unit Award Agreement

(Incentive Restricted Stock Unit Awards)

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

RECITALS:

     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 incentive restricted stock unit awards, 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) 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 “incentive awards,” 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 (i) the product
of (A) the dividend per Share payable on the record date relating to such dividend payment date,
and (B) the number of Restricted Stock Units held by the Participant on such dividend payment date,
divided by (ii) 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 third 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 for any reason,
including Retirement, 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 vested Restricted Stock Units then held by the Participant. Delivery of Shares
shall in all events be made no later than ninety (90) days after Termination of Service or Change
in Control, as applicable.

     (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, provided that such termination
constitutes a “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the Code
and Treasury Regulation Section 1.409A-1(h). The Company retains the right and discretion to
specify, and may specify, whether a Termination of Service occurs for individuals providing
services to the Company immediately prior to an asset purchase transaction in which the Company or
an Affiliate is the seller, who provide services to a buyer after and in connection with such asset
purchase transaction; provided, such specification is made in accordance with the requirements of
Treasury Regulation Section 1.409A-1(h)(4).

     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,

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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.

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     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 (together, referred to herein as the “Section 409A Penalties”), 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. This Agreement is intended not to result in the imposition of Section 409A Penalties and
shall be administered, interpreted and construed in a manner consistent with such intent,
including, where appropriate, the construction of defined terms to have meanings that would not
cause the imposition of Section 409A Penalties.

     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 	 W. Lance Wright 	 
	 	Its: 	Senior Vice President, Human Resources and

Administration
 	 
	 
	 	 	 

-4-exv10w55

 

EXHIBIT 10.55

THE USEC INC.

PENSION RESTORATION PLAN

(AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2008)

JANUARY 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	Section	 	 	 	 	 	Page	 
	 
	ARTICLE I — ESTABLISHMENT AND PURPOSE	 	 	1	 
	 
	 	1.1.	 	The Plan	 	 	1	 
	 
	 	1.2.	 	Purpose	 	 	1	 
	 
	 	1.3.	 	Application of Plan	 	 	1	 
	ARTICLE II — DEFINITIONS AND CONSTRUCTION	 	 	1	 
	 
	 	2.1.	 	Definitions	 	 	1	 
	 
	 	2.2.	 	Gender and Number	 	 	2	 
	 
	 	2.3.	 	Severability	 	 	2	 
	 
	 	2.4.	 	Applicable Law	 	 	2	 
	 
	 	2.5.	 	Plan Not an Employment Contract	 	 	2	 
	 
	 	2.6.	 	Definitions to Implement Section 409A.	 	 	2	 
	ARTICLE III — PARTICIPATION IN THE PLAN	 	 	4	 
	 
	 	3.1.	 	Participants	 	 	4	 
	 
	 	3.2.	 	Benefit Payments	 	 	4	 
	ARTICLE IV — BENEFITS	 	 	5	 
	 
	 	4.1.	 	Amount of Benefits	 	 	5	 
	 
	 	4.2.	 	Form of Payment	 	 	5	 
	 
	 	4.3.	 	Commencement Date	 	 	5	 
	 
	 	4.4.	 	Death Benefits	 	 	6	 
	 
	 	4.5.	 	Disability Benefits	 	 	6	 
	 
	 	4.6.	 	Funding	 	 	6	 
	 
	 	4.7.	 	Tax Withholding	 	 	6	 
	 
	 	4.8.	 	Nontransferabilty	 	 	6	 
	 
	 	4.9.	 	Specified Employees	 	 	6	 
	 
	 	4.10.	 	Application of 409A	 	 	7	 
	 
	 	4.11.	 	Acceleration of Payments for Tax Obligations	 	 	7	 
	ARTICLE V — ADMINISTRATION	 	 	8	 
	 
	 	5.1.	 	Administration	 	 	8	 
	 
	 	5.2.	 	Costs	 	 	8	 
	 
	 	5.3.	 	Finality of Determination	 	 	8	 
	 
	 	5.4.	 	Indemnification and Exculpation	 	 	8	 
	ARTICLE VI — NAMED FIDUCIARY AND CLAIMS PROCEDURE	 	 	9	 
	 
	 	6.1.	 	Named Fiduciary	 	 	9	 
	 
	 	6.2.	 	Payment of Benefits	 	 	9	 
	 
	 	6.3.	 	Denied Claim	 	 	9	 
	 
	 	6.4.	 	Written Notice	 	 	9	 
	 
	 	6.5.	 	Appeal	 	 	10	 
	 
	 	6.6.	 	Review of Appeal	 	 	10	 
	 
	 	6.7.	 	Hearing	 	 	11	 
	 
	 	6.8.	 	Written Decision	 	 	11	 
	ARTICLE VII — MERGER, AMENDMENT, AND TERMINATION	 	 	12	 
	 
	 	7.1.	 	Merger, Consolidation, or Acquisition	 	 	12	 
	 
	 	7.2.	 	Amendment and Termination	 	 	12	 

 

 

USEC INC.

PENSION RESTORATION PLAN

ARTICLE I — ESTABLISHMENT AND PURPOSE

     1.1. The Plan. USEC Inc. (the “Corporation”) hereby amends and restates the USEC Inc. Pension
Restoration Plan, as set forth herein, effective January 1, 2008 (the “Plan”). The Plan was
initially established effective September 1, 1999.

     1.2. Purpose. The general purposes of this Plan are to (a) provide the amount of the benefit
which would otherwise be paid under the Employees’ Retirement Plan of USEC Inc., as amended from
time to time (the “Qualified Plan”) but which cannot be paid under that plan on account of the
limitations imposed by the Internal Revenue Code of 1986, as amended from time to time (“Code”);
and (b) provide supplemental death benefits to the beneficiaries of certain Participants.

     1.3. Application of Plan. The provisions of this Plan, as herein amended and restated, shall
apply to benefits payable to eligible employees of the Corporation commencing on or after January
1, 2008. It is intended that the provisions of this Plan with respect to Grandfathered Benefits
have not been and shall not be materially modified from the provisions in effect on October 3,
2004, and the Plan shall be construed consistent with that intent. As amended, Non-Grandfathered
Benefits for which payment commenced after December 31, 2004 and prior to January 1, 2008 have been
paid in good-faith compliance with the requirements of Section 409A. This restatement shall not
apply to benefits that were in pay status prior to January 1, 2008.

ARTICLE II — DEFINITIONS AND CONSTRUCTION

     2.1. Definitions. Unless otherwise indicated, the terms used in this Plan shall have the same
meaning as they have under the Qualified Plan, as amended from time to time, except that:

          (a) The definition of “Compensation” shall also include (i) amounts deferred by a Participant
under the terms of any nonqualified deferred compensation plan maintained by the Corporation; (ii)
amounts in excess of the limitations set forth in Section 1.15 of the Qualified Plan that specify
the maximum amount of employment compensation that can be taken into account under Section
401(a)(17) of the Code (the “Section 401 Limits”) for determining qualified retirement plan
benefits; and (iii) amounts included in a Participant’s taxable income upon the lapse of
restrictions on shares of restricted common stock of the Corporation awarded under the USEC Inc.
Annual Incentive Program and governed by the USEC Inc. 1999 Equity Incentive Plan, or any successor
thereto.

          (b) The definition of “Final Average Compensation” shall mean, for any Participant as of any
date, the average annual Compensation paid to the Participant, determined as provided in Section
5.1(a)(i) and (ii) of the Qualified Plan.

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     2.2. Gender and Number. Except when otherwise indicated by the context, any masculine
terminology when used in the Plan shall also include the feminine gender, and the definition of any
term in the singular shall also include the plural.

     2.3. Severability. In the event any provision of the Plan shall be held invalid or illegal for
any reason, any illegality or invalidity shall not affect the remaining parts of the Plan, but the
Plan shall be construed and enforced as if the illegal or invalid provision had never been
inserted, and the Corporation shall have the privilege and opportunity to correct and remedy such
questions of illegality or invalidity by amendment as provided in the Plan.

     2.4. Applicable Law. This Plan shall be governed and construed in accordance with the laws of
the State of Delaware.

     2.5. Plan Not an Employment Contract. This Plan is not an employment contract. It does not
give to any person the right to be continued in employment, and all employees remain subject to
change of salary, transfer, change of job, discipline, layoff, discharge, or any other change of
employment status.

     2.6. Definitions to Implement Section 409A.

          (a) “Disability” shall mean with regard to Non-Grandfathered Benefits, either (i) a
medically determinable physical or mental impairment of the Participant that can be expected to
result in death or can be expected to last for a continuous period of at least twelve (12) months
that would qualify as a disability under the Corporation’s then current long-term disability plan;
provided the Participant has been receiving income replacement benefits under such an accident and
health plan maintained by the Corporation for no less than three months; or (ii) any other
definition of “disability” that satisfies the requirements of Code Section 409A(a)(2)(C) and
Treasury Regulation Section 1.409A-3(i)(4), if such other definition results in an earlier
determination of disability.

          (b) “Grandfathered Benefits” shall mean any benefits payable under this Plan for any
Participant that were earned by such Participant and vested on or before December 31, 2004 and not
materially modified after October 3, 2004, taking into account the benefit formula under the Plan,
the Participant’s service and the Participant’s Final Average Compensation as of December 31, 2004.

          (c) “Non-Grandfathered Benefits” shall mean benefits payable under this Plan that are
not Grandfathered Benefits, as described in Section 4.1.

          (d) “Retirement” with regard to Non-Grandfathered Benefits shall mean a Participant’s
Separation from Service after the earliest of (i) the completion of ten years of Credited Service
(as defined in the Qualified Plan) and attainment of age 62, (ii) attainment of age 65; and (iii)
the accumulation by the Participant of 85 points, where each year of the Participant’s age and each
year of Credited Service (as defined in the Qualified Plan) count for one point.

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          (e) “Section 409A” shall mean Code Section 409A together with any and all regulations,
rulings and other applicable guidance issued under Code Section 409A.

          (f) “Section 409A Penalties” shall have the meaning set forth in Section 4.10 of this
Plan.

          (g) “Separation from Service” shall be interpreted in a manner consistent with the
definition of “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the Code
and Treasury Regulation Section 1.409A-1(h). The Committee retains the right and discretion to
specify, and may specify, whether a Separation from Service occurs for individuals providing
services to the Corporation immediately prior to an asset purchase transaction in which the
Corporation or an Affiliate is the seller who provide services to a buyer after and in connection
with such asset purchase transaction; provided, such specification is made in accordance with the
requirements of Treasury Regulation Section 1.409A-1(h)(4).

          (h) “Specified Employee” shall mean any person described in Section 409A(a)(2)(B)(i)
of the Code and Treasury Regulation Section 1.409A-1(i) as determined from time to time by the
Committee in its discretion.

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ARTICLE III — PARTICIPATION IN THE PLAN

     3.1. Participants. Eligibility for membership in the Plan shall be determined by the
Compensation Committee of the Board of Directors of the Corporation, or its delegate (“Committee”)
in its sole discretion, on an individual basis, but each Participant must be a member of a select
group of management or highly-compensated employees of the Corporation and must be eligible to
participate in the Qualified Plan.

     3.2. Benefit Payments. The payment of benefits to the Participant or his beneficiary under this
Plan is conditioned upon the continuous employment of the Participant by the Corporation (including
periods of disability and authorized leaves of absence) from the date of participation in the Plan
until the Participant’s retirement from the Corporation, disability, or death, whichever first
occurs. Benefits under the Plan shall become vested upon the earliest of Participant’s retirement
from the Corporation, disability, or death. With respect to Non-Grandfathered Benefits, in this
Section 3.2, the term “retirement” shall mean “Retirement” as defined in Section 2.6(d) and the
term disability shall mean “Disability” as defined in Section 2.6(a).

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ARTICLE IV — BENEFITS

     4.1. Amount of Benefits. The benefit payable under this Plan to the Participant with respect to
Non-Grandfathered Benefits shall be equal to the difference between the amount in (1) and the
amount in (2) where:

(1) is the amount of the retirement benefit that would be payable under the
Qualified Plan in the form of a single life annuity beginning at the Participant’s
Retirement, before the application of the Section 401 Limits and the Section 415
Limits and by using the definition of compensation as provided in this Plan; and

(2) is the amount of the benefit actually payable under the Qualified Plan
commencing at the Participant’s Retirement in the form of a single life annuity.

          The amount payable as Non-Grandfathered Benefits shall be the difference between the amount
determined above and the amount of the Grandfathered Benefits.

     4.2. Form of Payment. Grandfathered Benefits payable under this Plan shall be paid in the same
form as benefits payable under the Qualified Plan. Non-Grandfathered Benefits shall be paid in a
form (either a lump sum or a life annuity) that is the actuarial equivalent of the benefit under
the Plan (determined under Section 4.1), as elected by the Participant by the later of December 31,
2007 or the thirtieth (30th) day after the end of the first Plan Year during which the
Participant first accrues a benefit under this Plan; provided, however, that any Participant who
also participates in the USEC Inc. 2006 Supplemental Executive Retirement Plan (the “2006 SERP”)
must elect the same form of payment under the 2006 SERP. A Participant who elects a life annuity
form of payment may elect any form of life annuity available under the Qualified Plan that is the
actuarial equivalent of the normal retirement benefit hereunder, and may subsequently select a
different type of actuarially equivalent life annuity available under the Qualified Plan with the
same scheduled date for the first annuity payment. If no election with respect to the form of
payment is made by the Participant within the applicable election period, a Participant’s
Non-Grandfathered Benefits shall be paid in the form of a lump sum payment.

     Notwithstanding the foregoing, if the lump sum actuarial equivalent of any benefits payable
(or remaining payable) is $10,000 or less, when aggregated with any limited cashout from any other
non-account balance deferred compensation plan of the Corporation or its affiliates covering the
Participant, the Committee may, in its sole discretion, direct the payment of such benefits due a
Participant, spouse, or beneficiary under this Plan in the form of such lump sum amount. The
actuarial assumptions for computing the lump sum amount shall be the same actuarial assumptions
used to compute a lump sum amount under the Qualified Plan. The payment of the lump sum shall be
in full discharge of the Corporation’s obligations under this Plan to the Participant, his spouse,
or beneficiaries.

     4.3. Commencement Date. Grandfathered Benefits payable under this Plan shall commence on or
about the same date that benefits commence under the Qualified Plan. Vested Non-Grandfathered
Benefits shall be paid (or commence) upon the earliest of Separation from Service, death or
Disability, and shall commence no later than the ninetieth (90th) day following the
Participant’s death, Disability or, subject to Section 4.9, Separation from Service.

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     4.4. Death Benefits. No death benefit shall be paid under this Plan except as provided in this
section. A death benefit shall be payable to a surviving spouse or other beneficiary designated by
the Participant if a death benefit is payable under the terms of the Qualified Plan. With regard
to Grandfathered Benefits, death benefits shall be paid at the same time and in the same form as
provided under the Qualified Plan. With regard to Non-Grandfathered Benefits, death benefits shall
be paid at the time and in the form provided in accordance with the provisions of Sections 4.2 and
4.3 hereof for Non-Grandfathered Benefits. Such death benefit shall be computed using the same
factors and assumptions used to compute the applicable death benefit under the Qualified Plan,
except that the amount of the death benefit shall be computed with respect to the amount of the
benefit the Participant accrues under this Plan.

     4.5. Disability Benefits. With regard to Grandfathered Benefits, a disability benefit shall be
paid to a Participant if and to the same extent a disability benefit is payable under the terms of
the Qualified Plan and at the same time and in the same form as provided under the Qualified Plan.
With regard to Non-Grandfathered Benefits, a disability benefit shall only be paid to a Participant
if such Participant is determined to have a Disability as such term is defined in Section 2.6(a) of
this Plan and shall be paid at the time and in the form provided in accordance with the provisions
of Sections 4.2 and 4.3 hereof for Non-Grandfathered Benefits. Such disability benefit shall be
computed using the same factors and assumptions used to compute the applicable disability benefit
under the Qualified Plan, except that the amount of the disability benefit shall be computed with
respect to the amount of the benefit the Participant accrued under this Plan.

     4.6. Funding. All amounts paid under this Plan shall be in cash from the general assets of the
Corporation. Benefits shall be reflected on the accounting records of the Corporation but shall
not be construed to create, or require the creation of, a trust, custodial or escrow account. No
employee shall have any right, title or interest whatever in or to any investment reserves,
accounts, or funds that the Corporation may purchase, establish, or accumulate to aid in providing
the benefits described in this Plan. Nothing contained in this Plan, and no action taken pursuant
to its provisions, shall create or be construed to create a trust or fiduciary relationship of any
kind between the Corporation and an employee or any other person. Neither an employee nor a
beneficiary of any employee shall acquire any interest greater than that of an unsecured creditor.

     4.7. Tax Withholding. The Corporation may withhold from a payment any federal, state, or local
taxes required by law to be withheld with respect to such payment and such sum as the Corporation
may reasonably estimate as necessary to cover any taxes for which the Corporation may be liable and
which may be assessed with regard to such payment.

     4.8. Nontransferabilty. An employee or his beneficiary shall have no rights by way of
anticipation or otherwise to assign or otherwise dispose of any interest under this Plan, nor shall
rights be assigned or transferred by operation of law.

     4.9. Specified Employees. Notwithstanding any other provision of this Plan, Non-Grandfathered
Benefits to be paid pursuant to this Plan based upon a Participant’s Separation from Service at a
time when the Committee has determined that such Participant is a Specified Employee shall not be
paid (or commence) before the date which is six (6) months and one day

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after the Participant’s Separation from Service. All payments delayed pursuant to this Section
shall be aggregated into one lump sum payment and shall be paid without interest as of the first
day of the seventh month after such Participant’s Separation from Service.

     4.10. Application of 409A. The Corporation intends for the Plan, as described herein and as may
be subsequently amended from time to time, to be written, construed and operated in a manner such
that no amounts deferred under the Plan become subject to (i) the gross income inclusion set forth
within Code Section 409A(a)(1)(A) or (ii) the interest and additional tax set forth within Code
Section 409A(a)(1)(B) (together, referred to herein as the “Section 409A Penalties”).
Notwithstanding any other provision of this Plan, acceleration of payment of accrued benefits or
any other action (including amendment or termination of the Plan) shall be permitted and effective
only to the extent such would not result in amounts deferred under the Plan becoming subject to the
Section 409A Penalties.

     4.11. Acceleration of Payments for Tax Obligations. The time or schedule of any payment under
this Plan may be accelerated with respect to any Participant at any time to the extent necessary
for the payment of any state, local, federal or foreign taxes imposed or required to be withheld in
respect of any accrued benefit under the Plan as determined by the Committee in its sole
discretion. Any payment made pursuant to this Section shall not exceed in amount the minimum
statutory tax withholding or income inclusion obligation and with regard to Non-Grandfathered
Benefits shall be made in accordance with Treasury Regulation Sections 1.409A-3(j)(4)(vi) and
(vii).

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ARTICLE V  — ADMINISTRATION

     5.1. Administration. The Plan shall be administered by the Committee. The Committee shall have
the authority to interpret the Plan, to adopt and review rules relating to the Plan and to make any
other determinations for the administration of the Plan, including the authority to delegate to the
Named Fiduciary such activities and responsibilities as are necessary for the day to day management
and administration of the Plan.

     Subject to the terms of the Plan, the Committee shall have exclusive jurisdiction to (a)
select the employees eligible to become Participants; (b) determine the eligibility for, and form
and method of any benefit payments; (c) establish the timing of benefit distributions; and (d)
settle claims according to the provisions in Article VI.

     5.2. Costs. The Committee may employ such counsel, accountants, actuaries, and other agents as
it shall deem advisable. The Corporation shall pay the compensation of such counsel, accountants,
actuaries, and other agents and any other expenses incurred by the Committee in the administration
of the Plan.

     5.3. Finality of Determination. The determination of the Committee as to any disputed questions
arising under this Plan, including questions of construction and interpretation, shall be final,
binding, and conclusive upon all persons.

     5.4. Indemnification and Exculpation. The members of the Committee, its agents, and officers,
directors, and employees of the Corporation and its affiliates shall be indemnified and held
harmless by the Corporation against and from any and all loss, cost, liability, or expense that may
be imposed upon or reasonably incurred by them in connection with or resulting from any claim,
action, suit, or proceeding to which they may be party or in which they may be involved by reason
of any action taken or failure to act under this Plan and against and from any and all amounts paid
by them in settlement (with the Corporation’s written approval) or paid by them in satisfaction of
a judgment in any such action, suit, or proceeding. The foregoing provision shall not be
applicable to any person if the loss, cost, liability, or expense is due to such person’s gross
negligence or willful misconduct.

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ARTICLE VI — NAMED FIDUCIARY AND CLAIMS PROCEDURE

     6.1. Named Fiduciary. The Named Fiduciary of the Plan and for purposes of the claims procedure
under this Plan is the Chief Human Resources Officer of the Corporation. The business address and
telephone number of the Chief Human Resources Officer is:

Senior Vice President, Human Resources and Administration

USEC Inc.

6903 Rockledge Drive

Bethesda, Maryland 20817

301-564-3306

          The Corporation shall have the right to change the Named Fiduciary of the Plan created under
this Plan. The Corporation shall also have the right to change the address and telephone number of
the Named Fiduciary. The Corporation shall give the Participants written notice of any change of
the Named Fiduciary, or any change in the address and telephone number of the Named Fiduciary.

     6.2. Payment of Benefits. Benefits shall be paid in accordance with the provisions of this
Plan. Upon the occurrence of an event which would make the payment of benefits possible to a
Participant under Article IV of this Plan, the Named Fiduciary shall give written notice by
registered mail to the Participant, or his beneficiary or contingent beneficiary, of the possible
availability of benefits under this Plan. The Participant, or his beneficiary or contingent
beneficiary (hereinafter collectively referred to as the “Claimant”) shall then make a written
request for the benefits provided under this Plan. This written claim shall be mailed or delivered
to the Named Fiduciary by registered mail.

     6.3. Denied Claim. If the claim is denied, either wholly or partially, notice of the decision
shall be sent by registered mail to the claimant within a reasonable time period. This time period
shall not exceed ninety (90) days after the receipt of the claim by the Named Fiduciary.

     6.4. Written Notice. The Named Fiduciary shall provide such written notice to every claimant
who is denied a claim for benefit under this Plan. The notice shall set forth the following
information:

          (a) the specific reasons for the denial;

          (b) the specific reference to pertinent Plan provisions on which the denial is based;

          (c) a description of any additional material or information necessary for the claimant to
perfect the claim and an explanation of why such material or information is necessary; and

          (d) appropriate information and explanation of the claims procedure under this Plan to permit
the claimant to submit his claim for review.

9

 

     6.5. Appeal. The claims procedure under this Plan shall allow the claimant a reasonable
opportunity to appeal a denied claim and to get a full and fair review of that decision from the
Committee.

          (a) The claimant shall exercise his right of appeal by submitting a written request for a
review of the denied claim to the Named Fiduciary. This written request for review must be
submitted to the Named Fiduciary within sixty (60) days after receipt by the claimant of the
written notice of denial.

          (b) The claimant shall have the following rights under this appeal procedure:

	 	(i)	 	to request a review by the Committee upon
written application to the Named Fiduciary;
	 
	 	(ii)	 	to review pertinent documents with regard to
the employee benefit plan created under this Plan;
	 
	 	(iii)	 	the right to submit issues and comments in
writing;
	 
	 	(iv)	 	to request an extension of time to make a
written submission of issues and comments; and
	 
	 	(v)	 	to request that a hearing be held to consider
claimant’s appeal.

     6.6. Review of Appeal. The decision on the review of the denied claim shall promptly be
provided by the Committee:

          (a) within forty-five (45) days after the receipt of the request for review if no hearing is
held; or

          (b) within ninety (90) days after the receipt of the request for review, if an extension of
time is necessary in order to hold a hearing.

	 	(i)	 	If an extension of time is necessary in order
to hold a hearing, the Committee shall give the claimant written notice
of the extension of time and of the hearing. This notice shall be
given prior to any extension.
	 
	 	(ii)	 	The written notice of extension shall indicate
that an extension of time will occur in order to hold a hearing on
claimant’s appeal. The notice shall also specify the place, date, and
time of that hearing and the claimant’s opportunity to participate in
the hearing. It may also include any other information the Committee
believes may be important or useful to the claimant in connection with
the appeal.

10

 

     6.7. Hearing. The decision to hold a hearing to consider the Claimant’s appeal of the denied
claim shall be within the sole discretion of the Committee, whether or not the Claimant requests
such a hearing.

     6.8. Written Decision. The Committee’s decision on review shall be made in writing and provided
to the Claimant within the specified time periods. This written decision on review shall contain
the following information:

          (a) the decision(s);

          (b) the reasons for the decision(s); and

          (c) specific references to the Plan provisions of the Plan on which the decision(s) is/are
based.

All of this information shall be written in a manner calculated to be understood by the claimant.

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ARTICLE VII — MERGER, AMENDMENT, AND TERMINATION

     7.1. Merger, Consolidation, or Acquisition. The Plan shall be binding upon the Corporation, its
assigns, and any successor Corporation which shall succeed to substantially all of its assets and
business through merger, consolidation or acquisition.

     7.2. Amendment and Termination. The Board of Directors of the Corporation may amend, modify, or
terminate the Plan at any time; provided, however, that no such amendment or termination shall
result in any acceleration or delay in the payment of any amount due under this Plan except to the
extent such acceleration or delay would not result in the imposition of Section 409A Penalties. In
addition, no amendment or termination of the Plan shall be effective to the extent that it would
cause the Grandfathered Benefits hereunder to be materially modified within the meaning of Treasury
Regulation Section 1.409A-6(a)(4) or otherwise become subject to Section 409A. In the event of a
termination of the Plan pursuant to this section, unpaid benefits of Participants who have had a
Separation from Service, death or Disability, or benefits of those Participants who are eligible
for retirement under the terms of the Qualified Plan shall continue to be an obligation of the
Corporation and shall be paid as scheduled.

IN WITNESS WHEREOF, the Corporation has caused this instrument to be executed by its duly
authorized officer on this 1st day of November, 2007, effective as of the 1st
day of January, 2008.

USEC INC.

By: _______________

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