Subsequent Event (Notes)

9 Months Ended

Sep. 30, 2014

SUBSEQUENT EVENT

Effective October 17, 2014, John K. Welch stepped down as the President and Chief Executive Officer of Centrus and resigned as a member of the Board of Directors. John R. Castellano, who has served as the Chief Restructuring Officer for the Company since October 2013, now serves as the Interim President and Chief Executive Officer. The Company has begun a process to select the next President and Chief Executive Officer of the Company.

Mr. Welch will receive severance pay, primarily in the fourth quarter of 2014, pursuant to the Company's Amended and Restated Executive Severance Plan in the amount of approximately $3.5 million, which is the sum of the amount described in (i) and the amount described in (ii), reduced by the amount described in (iii):


(i)	two times the participant’s Final Eligible Compensation;


(ii)	the participant’s Prorated Performance Bonus (for the second half of 2014);


(iii)	the sum of (A) severance or similar payments made pursuant to any Federal, state or local law, including but not limited to payments under the WARN Act, and (B) any termination or severance payments under any other termination or severance plans, policies or programs of the Company that the Participant receives.

Additionally, Mr. Welch will receive $0.2 million in the first quarter of 2015 for the portion of bonus pay in 2014 that was held back in accordance with the 2013 Quarterly Incentive Plan pending the Company's successful emergence from Chapter 11 bankruptcy.

In the fourth quarter of 2014, Centrus will record a special charge of $3.3 million for the severance payment (excluding previously accrued bonus amounts) and the value of continued limited-term insurance benefits for Mr. Welch.