1
Exhibit 10.3
PERFORMANCE GUARANTY
For and in consideration of the execution by the United States Enrichment
Corporation ("USEC") of Contract USEC- 96-C-0001 ("Contract") with Lockheed
Xxxxxx Utility Services, Inc. ("Subsidiary"), and in partial satisfaction of
the obligations of Subsidiary under the letter agreement dated October 19, 1995,
by and between the USEC and Subsidiary, executed in connection with the
Contract, Lockheed Xxxxxx Corporation ("Guarantor") hereby absolutely,
unconditionally and irrevocably guarantees to the USEC the full and prompt
payment and performance of all obligations of Subsidiary under the Contract. The
liability of Guarantor hereunder shall be continuing and shall not be affected
by any modification, reformation, waiver, release, extension or amendment of the
Contract consented to by Subsidiary or by the assignment to the USEC's successor
of this Guaranty contemporaneously with the assignment of the Contract to the
USEC's successor in conjunction with the privatization of the USEC or any other
event or circumstance that may give rise to a defense to payment or performance
by Guarantor.
Guarantor hereby waives notice by the USEC of acceptance of this Guaranty,
notice of default, presentment, demand, rights of subrogation, and
reimbursement, and any defenses of a guarantor provided however that prior to
proceeding against Guarantor under this Guaranty, USEC shall first issue to
Subsidiary a demand for performance as provided in the Contract and any cure
period applicable to such performance as set forth in the Contract shall have
expired without cure by Subsidiary. This Guaranty shall be governed under the
laws of New York.
October 1, 1995 LOCKHEED XXXXXX CORPORATION
/s/ Xxxxxx X. Xxxxxxxxxx
---------------------------------
Xxxxxx X. Xxxxxxxxxx
Vice President and Treasurer
0000 Xxxxxxxxx Xxxxx
Xxxxxxxx, Xxxxxxxx 00000
