Document:

Exhibit 10.2

 

director
Support Agreement

 

THIS
Director Support AGREEMENT (this “Agreement”), dated as of November 5, 2021 (the “Execution
Date”), is made and entered into by and among, Allegiance Bancshares, Inc., a Texas corporation
(“Allegiance”), CBTX, Inc., a Texas corporation (“CBTX”), and _____________________, an
individual residing in the State of _____________ (the “Undersigned”).

 

WHEREAS, concurrently herewith,
Allegiance and CBTX are entering into that certain Agreement and Plan of Merger, dated as of the date hereof, by and between CBTX and
Allegiance (as such agreement may be amended or supplemented from time to time, the “Merger Agreement”), pursuant
to which, among other things, Allegiance will merge with and into CBTX, with CBTX continuing as the legal surviving entity (the “Merger”);

 

WHEREAS, in connection with
the transactions contemplated by the Merger Agreement, CommunityBank of Texas, National Association, a federally-chartered national association
and wholly-owned subsidiary of CBTX (“CBTX Bank”), will merge with Allegiance Bank, a Texas-chartered state bank and
wholly-owned subsidiary of Allegiance (“Allegiance Bank” and together with Allegiance, CBTX and CBTX Bank, the “Transaction
Parties” and each a “Transaction Party”), with Allegiance Bank continuing as the legal surviving entity
(the “Surviving Bank”);

 

WHEREAS, the term “Surviving
Entity” as used in this Agreement with respect to time periods after the day and time the Merger is completed pursuant to the
terms of the Merger Agreement (the “Effective Time”) shall mean the Surviving Entity of the Merger as such term is
defined in the Merger Agreement;

 

WHEREAS, the Undersigned
is a director of Allegiance or a director of CBTX, and, as a director of Allegiance or CBTX, as applicable, has had access to (i) certain
Confidential Information (as defined below), including, without limitation, information concerning business, relationships between such
Transaction Party and their respective subsidiaries, vendors and customers and competitors and competition; and (ii) trade secrets,
customer goodwill and proprietary information of a Transaction Party and their respective businesses that constitute a substantial asset
to be acquired by the Surviving Entity;

 

WHEREAS, the Undersigned
recognizes that Allegiance’s and CBTX’s willingness to enter into the Merger Agreement is dependent on the Undersigned entering
into this Agreement (including the anti-piracy/non-solicitation/non-competition covenants below) and therefore this Agreement is incident
thereto; and

 

WHEREAS, any capitalized
term not defined herein shall have the meaning set forth in the Merger Agreement.

 

NOW, THEREFORE, for the new
Confidential Information the Undersigned will be provided and for other good and valuable consideration contained herein and in the Merger
Agreement, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.            Director
Support. The Undersigned agrees to use his or her best efforts to refrain from harming the goodwill of any of the Transaction Parties,
the Surviving Entity and the Surviving Bank and their respective subsidiaries, and their respective customer and client relationships
during the term of this Agreement.

 

    1

     

    

 

2.            Non-Disclosure
Obligations. The Undersigned agrees that he or she will not make any unauthorized disclosure, directly or indirectly, of any Confidential
Information of the Transaction Parties, the Surviving Entity or the Surviving Bank to third parties, or make any use thereof, directly
or indirectly. The Undersigned also agrees that he or she shall deliver promptly to the applicable Transaction Party, the Surviving Entity
or the Surviving Bank at any time at the reasonable request of such Transaction Party, the Surviving Entity or the Surviving Bank, without
retaining any copies, all documents and other material in the Undersigned’s possession at that time relating, directly or indirectly,
to any Confidential Information or other information of such Transaction Party, the Surviving Entity or the Surviving Bank, as applicable,
or Confidential Information or other information regarding third parties, learned in such person’s position as a director, officer
or shareholder of any of the Transaction Parties.

 

For purposes of this Agreement,
“Confidential Information” means and includes the Transaction Parties,’ the Surviving Entity’s or the
Surviving Bank’s confidential and/or proprietary information and/or trade secrets, including those of their respective subsidiaries,
that have been and/or will be developed or used and that cannot be obtained readily by third parties from outside sources. Confidential
Information includes, but is not limited to, the: information regarding past, current and prospective customers and investors and business
affiliates, employees, contractors, and the industry not generally known to the public; strategies, methods, books, records, and documents;
technical information concerning products, equipment, services, and processes; procurement procedures, pricing, and pricing techniques,
including contact names, services provided, pricing, type and amount of services used; financial data; pricing strategies and price curves;
positions; plans or strategies for expansion or acquisitions; budgets; research; financial and sales data; trading methodologies and
terms; communications information; evaluations, opinions and interpretations of information and data; marketing and merchandising techniques;
electronic databases; models and the output from same; specifications; computer programs; contracts; bids or proposals; technologies
and methods; training methods and processes; organizational structure; personnel information, including compensation and bonuses; payments
or rates paid to consultants or other service providers; other such confidential or proprietary information; and notes, analysis, compilations,
studies, summaries, and other material prepared by or for any of the Transaction Parties, the Surviving Entity or the Surviving Bank
or any of their respective subsidiaries containing or based, in whole or in part, on any information included in any of the foregoing.
The term “Confidential Information” does not include any information that (i) at the time of disclosure or thereafter
is generally available to and known to the public, other than by a breach of this Agreement by the disclosing party; (ii) was available
to the disclosing party, prior to disclosure by the Transaction Parties, the Surviving Entity or the Surviving Bank, on a non-confidential
basis from a source other than the Undersigned and is not known by the Undersigned, after reasonable investigation, to be subject to
any fiduciary, contractual or legal obligations of confidentiality; or (iii) was independently acquired or developed by the Undersigned
without violating any obligations of this Agreement. The Undersigned acknowledges that each of the Transaction Parties’ respective
businesses are highly competitive, that this Confidential Information constitutes valuable, special and unique assets to be acquired
by the Surviving Entity in the Merger and constitutes existing valuable, special, and unique assets held by the each of the Transaction
Parties pre-Merger, and that protection of such Confidential Information against unauthorized disclosure and use is of critical importance
to each of the Transaction Parties.

 

    2

     

    

 

3.            Non-Competition
Obligations. The Undersigned agrees that, for the period beginning on the Execution Date and continuing until the date that is two (2) years
after the Effective Time of the Merger (the “Non-Competition Period”), the Undersigned will not, except as a director
of Allegiance or CBTX or as an officer of a Transaction Party (as the case may be) prior to the Effective Time of the Merger, in any
capacity, directly or indirectly:

 

	 	a)	compete
    or engage, anywhere in the geographic area comprised of the fifty (50) mile radius surrounding the locations of CBTX Bank or
    Allegiance Bank (including Surviving Bank banking centers that were formerly locations of CBTX Bank at the Effective Time) (the “Market Area”),
    in a business as a federally insured depository institution;

 

	 	b)	take any
    action to invest in, own, manage, operate, control, participate in, be employed or engaged by, be a director of, or otherwise be
    connected in any manner with any individual, corporation (including any non-profit corporation), general or limited partnership,
    limited liability company, joint venture, estate, trust, association, organization, or governmental body (each a “Person”)
    engaging in a business similar to that of the Transaction Parties, the Surviving Entity or the Surviving Bank anywhere within the
    Market Area. Notwithstanding the foregoing, the Undersigned is permitted hereunder to own, directly or indirectly, up to one percent
    (1%) of the issued and outstanding securities of any publicly traded financial institution conducting business in the Market Area;

 

	 	c)	(i) call
    on, service or solicit competing business from customers of the Transaction Parties, the Surviving Entity or the Surviving Bank,
    as applicable, or any of their respective affiliates if, within the twelve (12) months before the date of this Agreement, the Undersigned
    had or made contact with the customer, or had access to information and files about the customer or (ii) interfere with or damage
    (or attempt to interfere with or damage) any relationship between any of the Transaction Parties, the Surviving Entity or the Surviving
    Bank, as applicable, or any of its or their respective affiliates and any such customer; or

 

	 	d)	call on,
    solicit or induce any employee of the Transaction Parties, the Surviving Entity or the Surviving Bank, as applicable, or any
    of their respective affiliates whom the Undersigned had contact with, knowledge of, or association with in the course of service
    with Allegiance and/or Allegiance Bank or of CBTX and/or CBTX Bank, as the case may be (whether as an employee or a contractor),
    to terminate his or her employment from or contract with such Transaction Party, the Surviving Entity or the Surviving Bank, as applicable,
    or any of its or their respective affiliates, and will not assist any other Person in such activities.

 

    3

     

    

 

4.            Non-Competition
Covenant Reasonable. The Undersigned acknowledges that the restrictions imposed by this Agreement are legitimate, reasonable
and necessary to protect Allegiance and CBTX’s combination into the Surviving Entity and the goodwill thereof. The Undersigned
acknowledges that the scope and duration of the restrictions contained herein are reasonable in light of the time that the Undersigned
has been engaged in the business of Allegiance and/or Allegiance Bank or of CBTX and/or CBTX Bank, as applicable, and the Undersigned’s
relationship with the customers of Allegiance and/or Allegiance Bank or of CBTX and/or CBTX Bank, as the case may be. The Undersigned
further acknowledges that the restrictions contained herein are not burdensome to the Undersigned in light of the other opportunities
that remain open to the Undersigned. Moreover, the Undersigned acknowledges that he or she has and will have other means available to
him or her for the pursuit of his or her livelihood after the Effective Time of the Merger.

 

5.            Consideration.
In consideration for the above obligations of the Undersigned, in addition to those matters set forth in the Recitals to this Agreement,
the Transaction Parties, as applicable, agree to provide the Undersigned with access to new Confidential Information relating to such
Transaction Party’s business, which will become the Surviving Entity’s business after the Effective Time of the Merger, in
a greater quantity and/or expanded nature than that already provided to the Undersigned. The Undersigned also will have access to, or
knowledge of, new Confidential Information of third parties, such as actual and potential customers, suppliers, partners, joint venturers,
investors, financing sources, etc., of certain of the Transaction Parties prior to the Merger and certain of the Transaction Parties
after the Effective Time of the Merger.

 

6.            Injunctive
Relief and Additional Remedies. The Undersigned acknowledges that the injury that would be suffered by Allegiance, CBTX or the Surviving
Entity as a result of a breach of the provisions of this Agreement (including any provision of Section 3) would be irreparable
and that an award of monetary damages to Allegiance, CBTX or the Surviving Entity, as the case may be, for such a breach would be an
inadequate remedy. Consequently, each of Allegiance, CBTX and the Surviving Entity will have the right, in addition to any other rights
it may have, to seek specific performance, to obtain injunctive relief to restrain any proposed or actual breach or threatened breach
or otherwise to specifically enforce any provision of this Agreement without the obligation to post bond or other security in seeking
such relief. Such equitable remedies are in addition to the right to obtain compensatory and punitive damages, and attorney’s fees,
and, notwithstanding Allegiance’s, CBTX’s or the Surviving Entity’s, as applicable, right to so seek damages, the Undersigned
waives any defense that an adequate remedy for Allegiance, CBTX or the Surviving Entity, as applicable, exists under law. If the Undersigned,
on the one hand, or Allegiance, CBTX or the Surviving Entity, on the other hand, must bring suit to enforce this Agreement, the prevailing
party shall be entitled to recover its attorneys’ fees and costs related thereto.

 

7.            Extension
of Restrictive Covenant Period. In the event that Allegiance, CBTX or the Surviving Entity shall file a lawsuit in any court of competent
jurisdiction alleging a breach of Section 3 of this Agreement by the Undersigned and Allegiance, CBTX or the Surviving Entity,
as applicable, is successful on the merits of such lawsuit, then any time period set forth in this Agreement including the time periods
set forth in Section 3, will be extended one month for each month the Undersigned was in breach of this Agreement, so that
the Surviving Entity, Allegiance or CBTX is provided the benefit of the full Non-Competition Period.

 

    4

     

    

 

8.            Effectiveness
of this Agreement. This Agreement shall become effective on the Execution Date. This Agreement shall automatically terminate and
be of no further force or effect if (a) the Merger Agreement is not executed on or prior to the Execution Date, or (b) the
Merger Agreement (once executed) is terminated in accordance with its terms and the Merger does not occur.

 

9.            Waiver.
The rights and remedies of the parties to this Agreement are cumulative and not alternative. Neither the failure nor any delay by either
party in exercising any right, power, or privilege under this Agreement will operate as a waiver of such right power, or privilege, and
no single or partial exercise of any such right, power, or privilege will preclude any other or further exercise of such right, power,
or privilege or the exercise of any other right, power, or privilege. To the maximum extent permitted by applicable law, (a) no
claim or right arising out of this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the
claim or right unless in writing signed by the other party; (b) no waiver that may be given by a party will be applicable except
in the specific instance for which it is given; and (c) no notice to or demand on one party will be deemed to be a waiver of any
obligation of such party or of the right of the party giving such notice or demand to take further action without notice or demand as
provided in this Agreement.

 

10.            Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of Allegiance, CBTX and their respective successors
and assigns, including, without limitation, any successor by merger, consolidation or stock purchase of Allegiance, CBTX and any Person
that acquires all or substantially all of the assets of Allegiance or CBTX.

 

11.            Notices.
All notices, consents, waiver, and other communications under this Agreement must be in writing and will be deemed to have been duly
given when (a) delivered by hand (with written confirmation of receipt), (b) sent by electronic mail, provided, that a copy
is mailed by registered mail, return receipt requested, or (c) when received by the addressee, if sent by a nationally recognized
overnight delivery service (receipt requested), in each case to the appropriate addresses and electronic mail addresses set forth below
(or to such other address or to such other Person as any party hereto has last designated by notice to the other parties in accordance
herewith):

 

If to Allegiance:

 

Allegiance Bancshares, Inc.

8847 West Sam Houston Parkway, N., Suite 200

Houston, Texas 77040

Attention: Steven F. Retzloff

Email: [REDACTED]

 

    5

     

    

 

With
a copy to:

 

Bracewell LLP

1445 Ross Avenue, Suite 3800

Dallas, Texas 75202

Attention: Mr. Joshua T. McNulty

Email: josh.mcnulty@bracewell.com

 

If to CBTX:

 

CBTX, Inc.

9 Greenway Plaza, Suite 110

Houston, Texas 77046

Attention: Robert R. Franklin, Jr., Chairman, President and Chief Executive Officer

E-mail: [REDACTED]

 

With
copies to:

 

Fenimore Kay Harrison & Ford, LLP

812 San Antonio Street, Suite 600

Austin, Texas 78701

Attention: Mr. Chet A. Fenimore

Email: cfenimore@fkhpartners.com

 

If to the Undersigned:

 

At the address set forth
under the Undersigned’s signature page hereto.

 

12.            Entire
Agreement; Amendment. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof
and supersedes all prior agreements and understandings, oral or written, between the parties hereto with respect to the subject matter
hereof. This Agreement may not be amended orally, but only by an agreement in writing signed by the parties hereto.

 

13.            Governing
Law. This Agreement and any claim, controversy or dispute arising under or related in any way to this Agreement and/or the interpretation
and enforcement of the rights and duties of the parties hereunder or related in any way to the foregoing, shall be governed by and construed
in accordance with the internal, substantive laws of the State of Texas applicable to agreements entered into and to be performed solely
within such state without giving effect to the principles of conflict of laws thereof.

 

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14.            Jurisdiction.
Any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement may be brought against
either of the parties in the courts of the State of Texas, County of Harris, or, if it has or can acquire jurisdiction, in a United States
District Court of the Southern District of Texas located in Houston, Texas, and each of the parties consents to the jurisdiction of such
courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection to venue laid therein. Process
in any action or proceeding referred to in the preceding sentence may be served on either party anywhere in the world. Notwithstanding
the foregoing a party may commence any action or proceeding in a court other than the above-named courts solely for the purpose of enforcing
an order or judgment issued by one of the above-named courts.

 

15.            Section Headings,
Construction. The headings of Sections in this Agreement are provided for convenience only and will not affect its construction or
interpretation. All references to “Section” or “Sections” refer to the corresponding Section or Sections
of this Agreement unless otherwise specified. All words used in this Agreement will be construed to be of such gender or number, as the
circumstances require. Unless otherwise expressly provided, the word “including” does not limit the preceding words or terms.

 

16.            Severability.
If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this
Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree
will remain in full force and effect to the extent not held invalid or unenforceable. If any restriction in this Agreement is held invalid
or unenforceable by any court of competent jurisdiction, it is the intention of the parties that the restrictions be reformed by such
court in such a manner that protects the business and Confidential Information of each the Transaction Parties and the Surviving Entity
to the maximum extent permissible.

 

17.            Representation
by Counsel; Interpretation. Each party to this Agreement acknowledges that it has had the opportunity to be represented by counsel
in the negotiation, preparation, and execution of this Agreement and the transactions contemplated by this Agreement. Accordingly, any
rule of law, including, but not limited to, the doctrine of contra proferentem, or any legal decision which would require interpretation
of any claimed ambiguities in this Agreement against the drafting party has no application and is expressly waived. The provisions of
this Agreement shall be interpreted in a reasonable manner to effect the intent of the parties.

 

18.            Counterparts.
This Agreement may be executed in multiple counterparts (including by means of telecopied signature pages or electronic transmission
in portable document format (pdf)), any one of which need not contain the signatures of more than one party, but all such counterparts
taken together shall constitute one and the same instrument.

 

[Signature Page Follows]

 

    7

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed as of the date first written above.

 

CBTX:

 

	 	 	CBTX, INC.
	 	 	 
	 	 	 
	 	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Director Support Agreement]

 

     

     

    

 

ALLEGIANCE:

 

	 	 	ALLEGIANCE
    BANCSHARES, Inc.
	 	 	 
	 	 	 
	 	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Director Support Agreement]

 

     

     

    

 

UNDERSIGNED:

 

	 	 
	 	 	Name:
	 	 
	 	Notice address:
	 	 
	 	_______________________
	 	_______________________
	 	_______________________
	 	Email: _______________

 

[Signature Page to Director Support Agreement]Document

Centrus Energy Corp.
Employee Notional Stock Unit Award Notice
(2021 Long-Term Incentive Program)
Centrus Energy Corp., a Delaware corporation (the “Company”), hereby grants to ________________(“you” or the “Grantee”), an award of Notional Stock Units, subject to and conditioned upon your agreement to the terms of this Award Notice, the Employee Notional Stock Unit Award Agreement, which is attached hereto as Exhibit A (the “Agreement”) and the Centrus Energy Corp. 2014 Equity Incentive Plan, as amended from time to time (the “Plan”), all of which are an integral part of, and are hereby incorporated into, this Employee Notional Stock Unit Award Notice (the “Award Notice”).  Capitalized terms used but not defined in the Award Notice or the Agreement shall have the meanings set forth in the Plan.
						
	Grant Date	September ___, 2021
	Number of Notional Stock Units	[____]
	Settlement Date	The end of the 20th trading day immediately following the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Subject to the provisions of the Agreement and the Plan, and provided that all conditions of the agreement are satisfied and you remain continuously employed by the Company and/or an Affiliate through the Settlement Date (except as otherwise expressly provided in the Agreement), for each Notional Stock Unit awarded, you will receive the value of a share of the Company’s Class A common stock (“Share”) on the Settlement Date, determined as the arithmetic mean of selling prices on the NYSE weighted by volume of trading over the 20 trading days immediately following the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
Centrus Energy Corp.
By:    
                            Name:
                            Title:

By signing below and returning this Award Notice to the Company, you acknowledge receipt of the Agreement and the Plan; accept the Notional Stock Units that have been granted to you; and agree to be bound by all the provisions set forth in this Award Notice, the Agreement and the Plan.
ACKNOWLEDGED AND AGREED
By:    
      

Enclosures:    Exhibit A:  Employee Notional Stock Unit Award Agreement

EXHIBIT A

Centrus Energy Corp.
Employee Notional Stock Unit Award Agreement
Employee Notional Stock Unit Award Agreement (the “Agreement”) dated as of September __, 2021 (the “Grant Date”), between Centrus Energy Corp., a Delaware corporation (the “Company”), and ________________ (the “Grantee”):
R E C I T A L S:
The Company has adopted the Centrus Energy Corp. 2014 Equity Incentive Plan, as amended from time to time (the “Plan”), which Plan 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 Notional Stock Units (the “Units”) provided for herein to the Grantee, pursuant to the Plan and the terms set forth herein, as an increased incentive to contribute to the Company’s future success and prosperity.
NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1.Grant of the Units.  The Company hereby grants to the Grantee the number of Units as set forth in the applicable Award Notice (the “Award”), which Award permits the Grantee to receive for each Unit awarded the value of one Share on the Settlement Date, determined as the arithmetic mean of selling prices on the NYSE weighted by volume of trading over the 20 trading days immediately following the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
2.Settlement of Award and Payment.  The Award shall be automatically settled on the Settlement Date; provided, however, that if the Company has not achieved Threshold Net Income (as defined on Schedule I attached hereto), the Award will automatically be forfeited without settlement.  No action on the part of the Grantee is required to cause the settlement of the Award.  Payment shall occur as soon as administratively feasible after the Settlement Date, but in no event later than December 31, 2024.  Payment shall be made in cash, or at the election and discretion of the Company, in Shares or a combination of cash and Shares.
3.Termination of Employment. 
a.In the event that the Grantee’s employment with the Company is terminated prior to the Settlement Date due to death or disability (as defined in Section 409A of the Code), involuntary separation from service by the Company other than for Cause, a separation from service for Good Reason (as defined in the Grantee’s Change in Control Agreement1), or the Grantee’s Retirement (as defined below), the Grantee or, in case of death, the Grantee’s beneficiary, shall be entitled to payment of a pro-rated amount that otherwise would have been 

paid hereunder.  The pro-rated amount shall be determined by reducing the number of Units subject to the Award by multiplying such number by a fraction, the numerator of which is the number of days that the Grantee was employed by the Company between the Grant Date and the Settlement Date, and the denominator of which is the number of days between the Grant Date and the Settlement Date.  The payment shall occur as soon as administratively feasible after the Settlement Date, but in no event later than December 31, 2024.  
b.If the Grantee incurs a termination of employment for any other reason (not set forth above) prior to the Settlement Date, including a voluntary termination of employment without Good Reason, or termination for Cause, the Award will automatically be forfeited. 
4.No Right to Continued Employment:  No Rights as a Shareholder.  Neither the Plan nor this Agreement shall confer on the Grantee any right to continued employment with the Company.  The Grantee shall not have any rights as a shareholder with respect to any Unit.
5.Transferability.  Except as provided below, the Units subject to the Award are non-transferable and may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee, except by will or the laws of descent and distribution.  Notwithstanding the foregoing, the Grantee may transfer the Units to members of his or her immediate family (defined as his or her spouse, children or grandchildren) or to one or more trusts for the exclusive benefit of such immediate family members or partnerships in which such immediate family members are the only partners, if the transfer is approved by the Committee and the Grantee does not receive any consideration for the transfer.  Any such transferred portion shall continue to be subject to the same terms and conditions that were applicable to the Units immediately prior to its transfer (except that such transferred portion shall not be further transferable by the transferee).  No transfer of the Units shall be effective to bind the Company, unless the Committee shall have approved the transfer and the Company shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the transferee of the terms and conditions hereof.
6.Withholding.  The Grantee agrees to make appropriate arrangements with the Company for satisfaction of any applicable federal, state, local or foreign tax withholding requirements or like requirements due as a result of this Award, and the Company shall have the right and is hereby authorized to withhold from the payment or from any other compensation or other amount owing to the Grantee such amount (in cash, Shares or other property, as the case may be) as may be necessary in the opinion of the Company to satisfy all such taxes and requirements.
7.Failure to Enforce Not A Waiver.  The failure of the Company to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.
8.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 law provisions thereof.

9.Amendments.  This Agreement may be amended or modified at any time by an instrument in writing signed by the parties hereto.
10.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 Grantee, to the Grantee’s address as shown in the records of the Company or to such other address as may be designated in writing by either party.
11.Award Subject to Plan; Amendments to Award.  This Award is subject to the Plan.  The terms and provisions of the Plan are hereby incorporated by reference.  In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail. 
12.Avoidance of Section 409A Penalties.  The Company intends that the Plan and this Agreement be written, construed and operated in a manner such that no amounts granted or payable under the Plan or this Agreement become subject to (a) the gross income inclusion set forth within Section 409A(a)(1)(A) of the Code, or (b) the interest and additional tax set forth within Section 409A(1)(B) of the Code.  The provisions of this Agreement shall not be construed as a guarantee by the Company of any particular tax effect to Grantee.  The Company shall not be liable to any Grantee for any payment or grant made under this Agreement that is determined to result in any additional tax, penalty or interest under Section 409A of the Code, nor for reporting in good faith any payment or grant made under this Agreement or the Plan as an amount includible in gross income under Section 409A of the Code.
13.Counterparts.  This Agreement may be executed in two (2) 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 this Agreement.  By execution of this Agreement, the Grantee acknowledges receipt of a copy of or access to the Plan.
Centrus Energy Corp.
By:    
Name:
Title: 
ACKNOWLEDGED AND AGREED
By:    
Grantee

Centrus Energy Corp.
Employee Stock Appreciation Right Award Notice
(2021 Long-Term Incentive Program)
Centrus Energy Corp., a Delaware corporation (the “Company”), hereby grants to ________________(“you” or the “Grantee”), an award of Stock Appreciation Rights, subject to and conditioned upon your agreement to the terms of this Award Notice, the Employee Stock Appreciation Right Agreement, which is attached hereto as Exhibit A (the “Agreement”) and the Centrus Energy Corp. 2014 Equity Incentive Plan, as amended from time to time (the “Plan”), all of which are an integral part of, and are hereby incorporated into, this Employee Stock Appreciation Right Award Notice (the “Award Notice”).  Capitalized terms used but not defined in the Award Notice or the Agreement shall have the meanings set forth in the Plan.
						
	Grant Date	September ___, 2021
	Number of Shares Subject to Stock Appreciation Right	[____]
	Exercise Date	The end of the 20th trading day immediately following the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Subject to the provisions of the Agreement and the Plan, and provided that all conditions of the Agreement are satisfied and you remain continuously employed by the Company and/or an Affiliate through the Exercise Date (except as otherwise expressly provided in the Agreement), for each Stock Appreciation Right, you will receive any appreciation in the value of a share of the Company’s Class A common stock (“Share”) from the Grant Date, determined as the closing price on the NYSE as of the Grant Date, to the value on the Exercise Date, determined as the arithmetic mean of selling prices on the NYSE weighted by volume of trading over the 20 trading days immediately following the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
Centrus Energy Corp.
By:    
                            Name:
                            Title:

By signing below and returning this Award Notice to the Company, you acknowledge receipt of the Agreement and the Plan; accept the Stock Appreciation Rights that have been granted to you; and agree to be bound by all the provisions set forth in this Award Notice, the Agreement and the Plan.
ACKNOWLEDGED AND AGREED
By:    
      

Enclosures:    Exhibit A:  Employee Stock Appreciation Right Agreement

EXHIBIT A

Centrus Energy Corp.
Employee Stock Appreciation Right Agreement
Employee Stock Appreciation Right Agreement (the “Agreement”) dated as of September __, 2021 (the “Date of Grant”), between Centrus Energy Corp., a Delaware corporation (the “Company”), and ________________ (the “Grantee”):
R E C I T A L S:
The Company has adopted the Centrus Energy Corp. 2014 Equity Incentive Plan, as amended from time to time (the “Plan”), which Plan 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 stock appreciation right provided for herein to the Grantee, pursuant to the Plan and the terms set forth herein, as an increased incentive to contribute to the Company’s future success and prosperity.
NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1.Grant of the Stock Appreciation Right.  The Company hereby grants to the Grantee the stock appreciation right (the “SAR”) as set forth in the applicable Award Notice (the “Award”), which SAR permits the Grantee to receive for each Share subject to the SAR any appreciation in the value of one Share measured from the value on the Grant Date, determined as the closing price on the NYSE as of the Grant Date, to the value on the Exercise Date, determined as the arithmetic mean of selling prices on the NYSE weighted by volume of trading over the 20 trading days immediately following the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
2.Exercise of SAR and Payment.  The SAR shall be automatically exercised on the Exercise Date; provided, however, that if the Company has not achieved Threshold Net Income (as defined on Schedule I attached hereto), the SAR will automatically be forfeited without exercise.  No action on the part of the Grantee is required to cause the exercise of the SAR.  Payment shall occur as soon as administratively feasible after the Exercise Date, but in no event later than December 31, 2024.  Payment shall be made in cash, or at the election and discretion of the Company,  in Shares or a combination  of cash and Shares.  
3.Termination of Employment. 
a.In the event that the Grantee’s employment with the Company is terminated prior to the Exercise Date due to death or disability (as defined in Section 409A of the Code), involuntary separation from service by the Company other than for Cause, a separation from service for Good Reason (as defined in the Grantee’s Change in Control Agreement), or the Grantee’s Retirement (as defined below), the Grantee or, in case of death, the Grantee’s beneficiary, shall be entitled to payment of a pro-rated amount that otherwise would have been 

paid hereunder.  The pro-rated amount shall be determined by reducing the number of Shares subject to the SAR by multiplying such number by a fraction, the numerator of which is the number of days that the Grantee was employed by the Company between the Grant Date and the Exercise Date, and the denominator of which is the number of days between the Grant Date and the Exercise Date.  The payment shall occur as soon as administratively feasible after the Exercise Date, but in no event later than December 31, 2024.  
b.If the Grantee incurs a termination of employment for any other reason (not set forth above) prior to the Exercise Date, including a voluntary termination of employment without Good Reason, or termination for Cause, the SAR will automatically be forfeited. 
4.No Right to Continued Employment:  No Rights as a Shareholder.  Neither the Plan nor this Agreement shall confer on the Grantee any right to continued employment with the Company.  The Grantee shall not have any rights as a shareholder with respect to any Shares subject to the SAR.
5.Transferability.  Except as provided below, the SAR is non-transferable and may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee, except by will or the laws of descent and distribution.  Notwithstanding the foregoing, the Grantee may transfer the SAR to members of his or her immediate family (defined as his or her spouse, children or grandchildren) or to one or more trusts for the exclusive benefit of such immediate family members or partnerships in which such immediate family members are the only partners, if the transfer is approved by the Committee and the Grantee does not receive any consideration for the transfer.  Any such transferred portion shall continue to be subject to the same terms and conditions that were applicable to the SAR immediately prior to its transfer (except that such transferred portion shall not be further transferable by the transferee).  No transfer of the SAR shall be effective to bind the Company, unless the Committee shall have approved the transfer and the Company shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the transferee of the terms and conditions hereof.
6.Withholding.  The Grantee agrees to make appropriate arrangements with the Company for satisfaction of any applicable federal, state, local or foreign tax withholding requirements or like requirements due as a result of this Award, and the Company shall have the right and is hereby authorized to withhold from the payment or from any other compensation or other amount owing to the Grantee such amount (in cash, Shares or other property, as the case may be) as may be necessary in the opinion of the Company to satisfy all such taxes and requirements.
7.Failure to Enforce Not A Waiver.  The failure of the Company to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.
8.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 law provisions thereof.

9.Amendments.  This Agreement may be amended or modified at any time by an instrument in writing signed by the parties hereto.
10.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 Grantee, to the Grantee’s address as shown in the records of the Company or to such other address as may be designated in writing by either party.
11.Award Subject to Plan; Amendments to Award.  This Award is subject to the Plan.  The terms and provisions of the Plan are hereby incorporated by reference.  In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail. 
12.Avoidance of Section 409A Penalties.  The Company intends that the Plan and  this Agreement be written, construed and operated in a manner such that no amounts granted or payable under the Plan or this Agreement become subject to (a) the gross income inclusion set forth within Section 409A(a)(1)(A) of the Code, or (b) the interest and additional tax set forth within Section 409A(1)(B) of the Code.  The provisions of this Agreement shall not be construed as a guarantee by the Company of any particular tax effect to Grantee.  The Company shall not be liable to any Grantee for any payment or grant made under this Agreement that is determined to result in any additional tax, penalty or interest under Section 409A of the Code, nor for reporting in good faith any payment or grant made under this Agreement or the Plan as an amount includible in gross income under Section 409A of the Code.
13.Counterparts.  This Agreement may be executed in two (2) 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 this Agreement.  By execution of this Agreement, the Grantee acknowledges receipt of a copy of or access to the Plan.
Centrus Energy Corp.
By:    
Name:
Title: 
ACKNOWLEDGED AND AGREED
By:    
Grantee

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