USEC INC
EXHIBIT 10.2
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<TYPE>EX-10.2
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<DESCRIPTION>EXHIBIT 10.2
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<P align="right"><FONT size="2"><B>Exhibit&nbsp;10.2</B>
</FONT>

<P align="center"><FONT size="2"><u>HOLDINGS GUARANTEE</u>
</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GUARANTEE dated as of September&nbsp;27, 2002, by USEC, Inc., a
Delaware corporation (the &#147;<u>Guarantor</u>&#148;), in favor of JPMorgan Chase Bank, a New York
banking corporation, as administrative and collateral agent (the &#147;<u>Administrative Agent</u>&#148;)
for (i)&nbsp;the Lenders (the &#147;<u>Lenders</u>&#148;) named in Schedule&nbsp;2.01 of the Credit Agreement
dated as of the date hereof, among United States Enrichment Corporation (the
&#147;<u>Borrower</u>&#148;), the Administrative Agent and the Lenders (as amended, modified or
supplemented from time to time in accordance with its terms, the &#147;<u>Credit Agreement</u>&#148;;
capitalized terms used herein and not otherwise defined herein shall have the meanings
attributed thereto in the Credit Agreement), (ii)&nbsp;itself as issuer of the Letters of Credit
and (iii)&nbsp;the Persons (other than the Guarantor or any of its subsidiaries) party to any
Derivative Obligations permitted under the Credit Agreement (collectively, the &#147;<u>Other
Obligations</u>&#148;), if any, that are, or were at the time of their entering into such Derivative
Obligation, Lenders or Affiliates of Lenders (the &#147;<u>Other Secured Parties</u>&#148;).
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent and the Lenders have agreed to extend Loans
and certain other financial accommodations to, including the issuance of the Letters of
Credit for the account of the Borrower pursuant to, and subject to the terms and
conditions of, the Credit Agreement. In addition, the Other Secured Parties have
entered, or may from time to time enter, into Derivative Obligations with the Borrower.
The obligation of the Lenders to extend such Loans and of the Administrative Agent to
issue the Letters of Credit under the Credit Agreement is conditioned on the execution
and delivery by the Guarantor of a guarantee in the form hereof of the due and punctual
payment and performance of (a)&nbsp;all obligations at any time and from time to time under
the Other Obligations, (b)&nbsp;the principal of and interest on the Loans, when and as due,
whether at maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, (c)&nbsp;Indebtedness at any time and from time to time under the Letters of Credit
and (d)&nbsp;all other obligations of the Borrower at any time and from time to time under the
Credit Agreement and the other Financing Documents (the foregoing collectively being
herein referred to as the &#147;<u>Guaranteed Obligations</u>&#148;).
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly, in consideration of the premises and in order to induce the
Administrative Agent and the Lenders to make Loans and extend other financial
accommodations under the Credit Agreement, the Guarantor hereby agrees as follows:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <u>Guarantee.</u> The Guarantor hereby irrevocably and
unconditionally guarantees the punctual payment when due, whether at stated maturity,
by acceleration or otherwise, and the punctual performance, of all present and future
Guaranteed Obligations.
</FONT>
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <u>Waiver.</u> The Guarantor hereby absolutely, unconditionally and
irrevocably waives, to the fullest extent permitted by law, (i)&nbsp;promptness, diligence,
notice of acceptance and any other notice with respect to this Guarantee,
(ii)&nbsp;presentment, demand of payment, protest, notice of dishonor or nonpayment and any
other notice with respect to the Guaranteed Obligations, (iii)&nbsp;any requirement that the
Administrative Agent, the Lenders or the Other Secured Parties protect, secure, perfect
or insure any security interest or Lien or any property subject thereto or exhaust any
right or take any action against the Borrower or any other Person or any Collateral, and
(iv)&nbsp;any other action, event or precondition to the enforcement of this Guarantee or the
performance by the Guarantor of its obligations hereunder.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <u>Guarantee Absolute.</u>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Guarantee is one of payment and performance, not collection,
and the obligations of the Guarantor under this Guarantee are independent of the
obligations of the Borrower under the Credit Agreement and any other Financing
Document, and a separate action or actions may be brought and prosecuted against the
Guarantor to enforce this Guarantee, irrespective of whether any action is brought
against the Borrower or whether the Borrower is joined in any such action or actions.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The liability of the Guarantor under this Guarantee shall, to the
fullest extent permitted under applicable law, be absolute and unconditional irrespective
of:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any invalidity, irregularity, voidability, voidness or
unenforceability of the Credit Agreement, the Notes, or any other Financing
Document or any other agreement or instrument relating thereto, or of all or any
part of the Guaranteed Obligations or of any security therefor;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any change in the manner, place or terms of payment or
performance, and/or any change or extension of the time of payment or
performance of, renewal or alteration of, any Guaranteed Obligation, any security
therefor, or any liability incurred directly or indirectly in respect thereof, or any
other amendment or waiver of or any consent to departure from the Credit
Agreement or the Notes or any other Financing Document or Other Obligation,
including any increase in the Guaranteed Obligations resulting from the extension
of additional credit to the Borrower or any of its Subsidiaries or otherwise;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any sale, exchange, release, surrender, realization upon any
property by whomsoever at any time pledged or mortgaged to secure, or
howsoever securing, all or any of the Guaranteed Obligations, and/or any offset
against, or failure to perfect, or continue the perfection of, any Lien in any such
property, or delay in the perfection of any such Lien, or any amendment or waiver
of or consent to departure from any other guaranty for all or any of the
Guaranteed Obligations;</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">2</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any exercise or failure to exercise any rights against the
Borrower or others (including the Guarantor);</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any settlement or compromise of any Guaranteed Obligation,
any security therefor or any liability (including any of those hereunder) incurred
directly or indirectly in respect thereof or hereof, and any subordination of the
payment of all or any part thereof to the payment of any Guaranteed Obligation
(whether due or not) of the Borrower to creditors of the Borrower other than the
Guarantor;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any manner of application of Collateral, or proceeds thereof,
to all or any of the Guaranteed Obligations, or any manner of sale or other
disposition of any Collateral for all or any of the Guaranteed Obligations or any
other assets of the Borrower or any of its Subsidiaries;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any change, restructuring or termination of the existence of
any of the Borrower or any of its Subsidiaries; or</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any other agreements or circumstance of any nature
whatsoever which might otherwise constitute a defense available to, or a
discharge of, this Guarantee and/or obligations of the Guarantor hereunder, or a
defense to, or discharge of, the Borrower or any other Person or party relating to
this Guarantee or the obligations of the Guarantor hereunder or otherwise with
respect to the Loans, Letters of Credit or Other Obligations extended to the
Borrower, in each case other than the indefeasible payment in full of the
Guaranteed Obligations.</FONT></TD>
</TR>

</TABLE>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent may at any time and from time to time
(whether or not after revocation or termination of this Guarantee) without the consent of,
or notice (except as shall be required by applicable law that cannot be waived) to, the
Guarantor, and without incurring responsibility to the Guarantor or impairing or releasing
the obligations of the Guarantor hereunder, apply any sums by whomsoever paid or
howsoever realized to any Guaranteed Obligation regardless of what Guaranteed
Obligations remain unpaid.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Guarantee shall continue to be effective or be reinstated, as
the case may be, if claim is ever made upon the Administrative Agent, any Lender or
any Other Secured Party for repayment or recovery of any amount or amounts received
by the Administrative Agent, such Lender or such Other Secured Party in payment or on
account of any of the Guaranteed Obligations and the Administrative Agent, such
Lender or such Other Secured Party repays all or part of said amount by reason of any
judgment, decree or order of any court or administrative body having jurisdiction over
the Administrative Agent, such Lender or such Other Secured Party or the respective
property of each, or any settlement or compromise of any such claim effected by the
Administrative Agent, such Lender or such Other Secured Party with any such claimant
(including the Borrower), the Guarantor shall be and remain liable to the Administrative
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<P><FONT size="2">Agent, such Lender and/or such Other Secured Party hereunder for the amount so
repaid or recovered to the same extent as if such amount had never originally been
received by the Administrative Agent, such Lender or such Other Secured Party.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <u>Continuing Guarantee.</u> This Guarantee is a continuing one and
shall (i)&nbsp;remain in full force and effect until the indefeasible payment and satisfaction in
full of the Guaranteed Obligations, (ii)&nbsp;be binding upon the Guarantor, its successors
and assigns, and (iii)&nbsp;inure to the benefit of, and be enforceable by, the Administrative
Agent and its successors, transferees and assigns. All obligations to which this
Guarantee applies or may apply under the terms hereof shall be conclusively presumed
to have been created in reliance hereon.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <u>Representations, Warranties and Covenants.</u> The Guarantor
hereby represents, warrants and covenants to and with the Administrative Agent that:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor has the power to execute and deliver this Guarantee
and to incur and perform its obligations hereunder;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor has duly taken all necessary action to authorize the
execution, delivery and performance of this Guarantee and to incur and perform its
obligations hereunder;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No consent, approval, authorization or other action by, and no
notice to or of, or declaration or filing with, any governmental or other public body, or any
other Person, is required for the due authorization, execution, delivery and performance
by the Guarantor of this Guarantee or the consummation of the transactions
contemplated hereby, except those which the failure to so obtain could not reasonably
be expected to have a material adverse effect on the ability of the Guarantor to perform
its obligations hereunder (a &#147;<u>Material Adverse Effect</u>&#148;);
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance by the Guarantor of this
Guarantee do not and will not violate or otherwise conflict with any term or provision of
any material agreement, instrument, judgment, decree, order or any statute, rule or
governmental regulation applicable to the Guarantor, except for any such breach or
default that could not reasonably be expected to have a Material Adverse Effect, or
result in the creation of any Lien upon any of its properties or assets pursuant thereto
(other than any Liens created pursuant to the Financing Documents);
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Guarantee has been duly authorized, executed and delivered
by the Guarantor and constitutes the legal, valid and binding obligation of the Guarantor,
and is enforceable against the Guarantor in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting
creditors&#146; rights generally and general principles of equity (regardless of whether such
enforcement is sought in a proceeding in equity or at law);
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No proceeding referred to in paragraph (g)&nbsp;or (h)&nbsp;of Article&nbsp;VII of the
Credit Agreement is pending against the Guarantor and no other event referred to in
such paragraphs (g)&nbsp;and (h)&nbsp;of such Article&nbsp;VII has occurred and is continuing with
respect to the Guarantor, and the property of the Guarantor is not subject to any
assignment for the benefit of creditors;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor is the sole shareholder of the Borrower and the
Borrower has no outstanding rights, options, warrants or agreements pursuant to which
it may be required to sell any of its capital stock interests; and
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Without the prior written consent of the Administrative Agent, the
Guarantor will not own or operate any assets or properties or engage in any business or
other activity whatsoever (including the incurring of Indebtedness or the granting of
Liens), except for (i)&nbsp;its ownership of the capital stock of the Borrower, (ii)&nbsp;its business
as has been disclosed to the Administrative Agent as of the date of the Guarantee,
including, without limitation, research in and deployment of, advanced enrichment
technologies and except as otherwise may be specifically permitted by the other
Financing Documents; and
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor will take, and will cause each of its subsidiaries to
take, all necessary actions to comply with the provisions of Articles V and VI of the
Credit Agreement applicable to it.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <u>Expenses.</u> The Guarantor will upon demand reimburse the
Administrative Agent for any reasonable sums, costs, and expenses which the
Administrative Agent may pay or incur pursuant to the provisions of this Guarantee or in
negotiating, executing, perfecting, defending, protecting or enforcing this Guarantee or
in enforcing payment of the Guaranteed Obligations or otherwise in connection with the
provisions hereof, including court costs, collection charges, travel expenses, and
reasonable attorneys&#146; fees, together with interest thereon as specified in Section&nbsp;12
hereof.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <u>Terms.</u> (a)&nbsp;All terms defined in the UCC and used herein shall
have the meanings as defined in the UCC, unless the context otherwise requires.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The words &#147;include,&#148; &#147;includes&#148; and &#147;including&#148; shall be deemed to
be followed by the phrase &#147;without limitation&#148;.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All references herein to Sections and subsections shall be deemed
to be references to Sections and subsections of this Guarantee unless the context shall
otherwise require.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <u>Amendments and Modification.</u> No provision hereof shall be
modified, altered or limited except by written instrument expressly referring to this
Guarantee and to such provision, and executed by the party to be charged.
</FONT>
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9. <u>Subrogation.</u> Upon making full payment with respect to any
Guaranteed Obligation hereunder, the Guarantor shall be subrogated to the rights of the
payee against the Borrower with respect to such obligation; provided that the Guarantor
shall not enforce any payment by way of subrogation so long as any Lender has any
Commitment under the Credit Agreement, any Letter of Credit shall remain outstanding
or any Guaranteed Obligation remains unpaid.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10. <u>Remedies Upon Default; Right of Set-Off.</u> (a)&nbsp;Upon the
occurrence and during the continuance of any Event of Default, the Administrative Agent
may, in accordance with the Credit Agreement, without demand upon the Borrower or
the Guarantor, declare any Guaranteed Obligations immediately due and payable, and
shall be entitled to enforce the obligations of the Guarantor hereunder.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon such declaration by the Administrative Agent, the
Administrative Agent and any Lender is hereby authorized at any time and from time to
time, to the fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by the Administrative Agent or any Lender to or for the
credit or the account of the Guarantor against any and all of the obligations of the
Guarantor now or hereafter existing under this Guarantee that are then due, whether or
not the Administrative Agent or such Lender shall have made any demand under this
Guarantee. The Administrative Agent agrees promptly to notify the Guarantor after any
such set-off and application, <u>provided</u> that the failure to give such notice shall not affect
the validity of such set-off and application. The rights of the Administrative Agent and
Lenders under this Section&nbsp;10 are in addition to other rights and remedies (including
other rights of set-off) which the Administrative Agent and Lenders may have.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11. <u>Statute of Limitations.</u> Any acknowledgment or new promise,
whether by payment of principal or interest or otherwise and whether by the Borrower or
others (including the Guarantor), with respect to any of the Guaranteed Obligations
shall, to the fullest extent permitted under applicable law, if the statute of limitations in
favor of the Guarantor against the Administrative Agent or Lenders shall have
commenced to run, toll the running of such statute of limitations and, if the period of
such statute of limitations shall have expired, prevent the operation of such statute of
limitations.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12. <u>Rights and Remedies Not Waived.</u> No act, omission or delay
by the Administrative Agent shall constitute a waiver of its rights and remedies
hereunder or otherwise. No single or partial waiver by the Administrative Agent of any
default hereunder or right or remedy which it may have shall operate as a waiver of any
other default, right or remedy or of the same default, right or remedy on a future
occasion.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;13. <u>Admissibility of Guarantee.</u> The Guarantor agrees that any
copy of this Guarantee signed by the Guarantor and transmitted by telecopier for
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<P><FONT size="2">delivery to the Administrative Agent shall be admissible in evidence as the original itself
in any judicial or administrative proceeding, whether or not the original is in existence.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;14. <u>Notices.</u> All notices, requests and demands to or upon the
Administrative Agent or the Guarantor under this Agreement shall be in writing and
given as provided in the Credit Agreement (with respect to the Guarantor, to the
address of the Borrower set forth in the Credit Agreement).
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15. </B><u><B>CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL;
ETC.</u> (a)&nbsp;THE GUARANTOR HEREBY SUBMITS FOR ITSELF AND IN RESPECT
OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, TO THE
NONEXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF
NEW YORK AND OF THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT
THEREFROM IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT. THE GUARANTOR HEREBY IRREVOCABLY WAIVES, IN
CONNECTION WITH ANY SUCH ACTION OR PROCEEDING, (i)&nbsp;TRIAL BY JURY,
(ii)&nbsp;TO THE EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW,
ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR
BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR
PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS AND (iii)&nbsp;THE RIGHT TO
INTERPOSE ANY SET-OFF, COUNTERCLAIM OR CROSS-CLAIM (UNLESS SUCH
SET-OFF, COUNTERCLAIM OR CROSS-CLAIM COULD NOT, BY REASON OF ANY
APPLICABLE FEDERAL OR STATE PROCEDURAL LAWS, BE INTERPOSED,
PLEADED OR ALLEGED IN ANY OTHER ACTION).</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor irrevocably consents to the service of process of any
of the aforementioned courts in any such action or proceeding by the mailing of copies
thereof by certified mail, postage prepaid, to the Guarantor at its address determined
pursuant to Section&nbsp;14 hereof.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nothing herein shall affect the right of the Administrative Agent to
serve process in any other manner permitted by law or to commence legal proceedings
or otherwise proceed against the Guarantor in any other jurisdiction.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor hereby waives presentment, notice of dishonor and
protests of all instruments included in or evidencing any of the Guaranteed Obligations,
and any and all other notices and demands whatsoever (except as expressly provided
herein).
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;16. </B><u><B>GOVERNING LAW.</u> THIS GUARANTEE SHALL BE
CONSTRUCTED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICTS OF LAWS</B>
<P align="center"><FONT size="2">7</FONT>
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</FONT>
<P><FONT size="2"><B>PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION OF THE
LAWS OF ANY OTHER JURISDICTION.</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;17. <u>Captions; Separability.</u> (a)&nbsp;The captions of the Sections and
subsections of this Guarantee have been inserted for convenience only and shall not in
any way affect the meaning or construction of any provision of this Guarantee.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any term of this Guarantee shall be held to be invalid, illegal or
unenforceable, the validity of all other terms hereof shall in no way be affected thereby.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;18. <u>Acknowledgment of Receipt.</u> The Guarantor acknowledges
receipt of a copy of this Guarantee and each of the Financing Documents.
</FONT>

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<P align="center"><FONT size="2">8</FONT>
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the Guarantor has duly executed or caused this
Guarantee to be duly executed in the State of New York as of the date first above set
forth.
</FONT>
<P align="right">
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%">
<TR valign="bottom">
        <TD width="100%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">USEC INC.</FONT></TD>
</TR>
<TR valign="bottom">
        <TD width="100%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">By:  <u>/s/ Henry Z Shelton, Jr.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">Name: Henry Z Shelton, Jr.</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">Title: &nbsp;&nbsp;Senior Vice President and</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer</FONT></TD>
</TR>
</TABLE>


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