**EXHIBIT        10.22**

**RECITALS**

**ARTICLE        1**

**DEFINITIONS**

**ARTICLE        2**

**TITANIUM        CONVERSION SERVICES**

| 2.1   | Maximum                Volumes. |
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| (a)   | Upon                the terms set forth herein, HAYNES agrees that for each year during                the                term of this Agreement, HAYNES shall supply TIMET or its designee(s)                with                Titanium Conversion Services on the Operating Assets of up to ten                (10)                million output pounds annually (as it may be increased as set forth                in                Section 2.1(b) below, the “Maximum Annual Volume”). The foregoing                represents a capacity guarantee and HAYNES agrees that at all times                during                the term of this Agreement it shall dedicate to TIMET adequate capacity                for the performance of Titanium Conversion Services on a timely basis                as                required herein subject to the Maximum Annual Volume and Maximum                Monthly                Volume. HAYNES shall be responsible for all capital equipment, trained                personnel, maintenance, utilities and other expenses incurred to                produce                the products identified on Exhibit A. |
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| (b)   | TIMET                shall have the option (the “Option”), exercisable by written notice (the                “Option Notice”) from TIMET to HAYNES, to order Titanium Conversion                Services of up to an additional ten (10) million output pounds annually                (such that the Maximum Annual Volume shall be up to twenty (20) million                output pounds annually); provided, however, that the Maximum Annual                Volume                shall not increase unless and until the occurrence of one of the                events                set forth in Section 2.1(c)(i) or (ii). After the Loan Date (as defined                below), the increased volumes will be staged into HAYNES’ production                schedule in mutually agreeable increments, provided that (i) no later                than                eighteen (18) months after the Loan Date, the Maximum Annual Volume                shall                be up to fifteen (15) million output pounds, and (ii) not later than                thirty (30) months after the Loan Date and in all subsequent years,                the                Maximum Annual Volume shall be up to twenty (20) million output pounds. |
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| (c)   | Upon                the delivery of the Option Notice, HAYNES and TIMET shall promptly                form a                steering committee consisting of two (2) representatives of each                of HAYNES                and TIMET (the “Steering Committee”). The Steering Committee will                determine and approve any capital expenditures necessary to achieve                the                additional capacity. At TIMET’s option, TIMET may either (i) follow the                Steering Committee’s determination, approve the necessary capital                expenditures and offer to lend HAYNES up to an aggregate of Twelve                Million Dollars ($12,000,000)                for such capital investments; or (ii) without seeking Steering Committee                approval, offer to lend HAYNES Twelve Million Dollars ($12,000,000)                to use                for capital investments that are required to achieve the additional                capacity (the date HAYNES receives written notice of TIMET’s action under                either (i) or (ii) to be referred to as the “Loan Date”). |
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| (d)   | HAYNES                shall have up to two (2) months from the Loan Date to evaluate and                obtain                an alternative source of financing to the terms proposed by TIMET                and set                forth in Exhibit B attached hereto in order to fund the capital                expenditures necessary to achieve the additional capacity. If HAYNES                obtains an alternative source of financing within such two-month                period,                HAYNES will not be required to accept TIMET financing in order to                satisfy                the Option. If HAYNES does not obtain an alternative source of financing                within such two-month period, HAYNES shall deliver to TIMET by the                end of                such period a secured promissory note (the “Option Note”) for the amount                of the loan in the form attached hereto as Exhibit B. The Option                Note will                be secured as set forth in the Access and Security Agreement. The                Steering                Committee will continue to confer at regularly scheduled meetings                on the                needs and status of the capital expansion projects with respect to                which                the proceeds of the Option Note have been or will be utilized, to                review                progress reports of the project managers, and to develop project                milestones and project plans as necessary and appropriate. The proceeds                of                the Option Note shall be utilized only for capital expenditures approved                by the Steering Committee. |
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| (e)   | Any                delivery by HAYNES of a product ordered during a calendar year and                delivered in the subsequent calendar year shall not count against                the                Maximum Annual Volume for such subsequent calendar year, but will                count                against the Maximum Annual Volume for the year in which the product                was                ordered. |
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| (f)   | HAYNES                will not be obligated to provide Titanium Conversion Services for                any                one-month period in excess of one hundred and twenty percent (120%)                of one                twelfth (1/12) of the Maximum Annual Volume (the “Maximum Monthly                Volume”). Any late delivery of Titanium Conversion Services by HAYNES                shall not count against the Maximum Monthly Volume. Any late delivery                of                Titanium Conversion Services by HAYNES that extends past the end                of the                year in which the services were ordered shall not count against the                Maximum Annual Volume for any subsequent year. Any Titanium Conversion                Services that TIMET determines pursuant to the Acceptance Procedure                in                Section 4.3 do not comply with the warranty set forth in Section                6.1 shall                not count against the Maximum Monthly Volume or the Maximum Annual                Volume. |
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| (g)   | TIMET                will not be permitted to exercise the Option unless it has complied                with                the provisions of Section 3.4(b) for a period of at least the prior                four                months. |
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| 2.2   | Cooperation.                HAYNES and TIMET shall cooperate to determine HAYNES’ production                scheduling of the Operating Assets consistent with the provisions                of this                Agreement. The Parties recognize that they need to cooperate to achieve                TIMET and TIMET customer qualifications for process practices, operating                procedures and product specifications for the Titanium Conversion                Services. In cooperation with TIMET technical resources, HAYNES shall                provide the necessary technical personnel to further develop process                practices, operating procedures and product specifications required                to                achieve full product qualifications and performance target                initiatives. |
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| 2.3   | Product                Codes. |
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| (a)   | Exhibit                A sets forth a product code and pricing for each titanium product                form                currently expected to be manufactured utilizing Titanium Conversion                Services. This list will be updated as required during the term of                this                Agreement. |
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| (b)   | In                the event TIMET desires to develop new process practices, operating                procedures and product specifications for Titanium Conversion Services                for                which a product code is not listed on Exhibit A, TIMET shall promptly                notify HAYNES, and process practices, operating procedures and product                specifications for such product codes shall be jointly developed                by TIMET                and HAYNES as promptly as reasonably practical. Once HAYNES and TIMET                complete trials and agree upon the process practices, operating                procedures, product specifications and Maximum Cycle Time, the product                shall be assigned a product code. The Parties then promptly shall                prepare                and execute an updated Exhibit A to incorporate such new product and                its corresponding Maximum Cycle Time, Base Price and product code.                The                initial Base Price for additional services provided under this Agreement                shall be established at [ * ]. All capital costs incurred that are                required to develop such process practices, operating procedures                and                product specifications for any product codes added to Exhibit A                pursuant to this Section 2.3(b) shall be shared equally between the                Parties and, unless otherwise agreed to in writing by the head of                manufacturing of each Party, no process qualification may require                a total                capital expenditure in excess of [ * ]. TIMET shall reimburse HAYNES                for                the cost of trial rolling services performed while developing such                process                practices, operating procedures and product specifications for new                product                codes at [ * ]. |
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| 2.4   | Forecasts. |
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| (a)   | Annual                Forecasts.                No later than December 1st each year, TIMET will provide HAYNES with                a                forecast for the following calendar year of its anticipated monthly                volume                requirements by product code for Titanium Conversion Services. Within                five                (5) business days of receipt of TIMET’s forecast, HAYNES will provide to                TIMET its scheduled production interruptions for holidays and maintenance.                Prior to December 15, the Parties will exchange and reconcile the                forecasts and scheduled interruptions to serve as the initial annual                forecast by month for the upcoming year. |
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| (b)   | Scheduling                of Conversion Services.                During the third week of each calendar month, TIMET will supply to                HAYNES                a forecast of estimated Material quantities that will be scheduled                for                Titanium Conversion Services to be performed by HAYNES in the coming                calendar month, which forecasts will be non-binding but made by TIMET                in                good faith. |
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| 2.5   | Submission                Sheets. |
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| (a)   | TIMET                shall purchase Titanium Conversion Services from HAYNES on the basis                of                firm Submission Sheets. |
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| (b)   | Each                Submission Sheet shall contain the                following: |
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| (i)   | reference                to this Agreement; |
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| (ii)   | the                specific product code from Exhibit A; |
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| (iii)   | a                Purchase Order Number; |
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| (iv)   | reference                to standard process practice, operating procedures and product                specifications (including but not limited to parameters associated                with                gauge, flatness, as rolled surface condition, yield and mechanical                properties), which shall include but not be limited to standard operating                procedures, rolling pass schedules, work instructions, heating practices                and similar process instructions; and |
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| (v)   | such                other information as the Parties reasonably agree is necessary or                advisable for more efficient performance of this                Agreement. |
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| 2.6   | Ownership                of Proprietary Information.                TIMET shall retain sole and exclusive ownership of and all right,                title                and interest in and to all know-how, concepts, techniques, methodologies,                ideas, process practices, operating procedures and product specifications,                including all updates, modifications, improvements and enhancements                thereof that relate to the provision of the Titanium Conversion Services                (the “Proprietary Information”) provided or developed by TIMET prior to                and during the term of this Agreement. TIMET shall also retain sole                and                exclusive ownership of Proprietary Information developed jointly                by TIMET                and HAYNES or any HAYNES Successor prior to and during the term of                this                Agreement (the “Joint Proprietary Information”). TIMET hereby grants                HAYNES or any HAYNES Successor a non-exclusive, worldwide, fully                paid and                irrevocable license to use any Joint Proprietary Information; provided,                however, that HAYNES cannot use such Joint Proprietary Information                in                competition with TIMET during the term of this Agreement. Furthermore,                such license to use Joint Proprietary Information shall terminate                automatically upon the occurrence of an Event of Default listed in                Section                5.2(a) or 5.2(b) hereof. All Proprietary Information shall constitute                Confidential Information within the meaning of Article 9 hereof;                provided,                however, that HAYNES or any HAYNES Successor shall be permitted to                disclose Joint Proprietary Information as necessary to obtain the                benefits                of the license granted hereunder. |
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**ARTICLE        3**

**PRICES        AND PAYMENT**

| 3.1   | Base                Prices. |
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| (a)   | The                Base Prices for Titanium Conversion Services that are effective upon                commencement of this Agreement are set forth in Exhibit A (such prices                are                expressed on a per pound basis by input weight, product and                size). |
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| (b)   | Effective                January 1 of each year during the term of this Agreement commencing                in                2007, the Base Prices then in effect [ *                ]. |
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| 3.2   | Calculation                of Adjustments.                As soon as the [ * ] identified in Section 3.1(b) above is available                for a calendar year, HAYNES shall provide to TIMET its written                determination of the adjusted Base Prices for the following year                based                upon the foregoing formula, and HAYNES shall supply TIMET with copies                of                the relevant index. In the event that TIMET finds a mistake in the                calculations provided by HAYNES, TIMET shall notify HAYNES as soon                as                possible with an explanation of the error, and the Parties will work                in                good faith to make an appropriate adjustment to the adjusted Base                Price. |
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| 3.3   | Changes                to [ * ].                If during the performance of this Agreement, the [ * ] identified                in                Section 3.1(b) ceases to exist or to be published, the Parties shall                apply instead the relevant factor published by any successor to the                [ * ]                or the most compatible factor still published by the [ * ], respectively,                or in the absence of both of the foregoing, such substitute factor                or                factors upon which the Parties may mutually agree. |
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| 3.4   | Terms                of Delivery and Payment. |
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| (a)   | Except                as otherwise set forth herein, all prices are FOB HAYNES’                facility. |
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| (b)   | Payment                is due based on terms and conditions of the Submission Sheet                acknowledgement, and all payments will be due and payable within                thirty                (30) days of the date of the invoice. No invoice will be sent prior                to                completion of all relevant services without the prior written consent                of                TIMET. All invoices shall contain the Submission Sheet and Purchase                Order                Number and the description, quantity and unit price of the Titanium                Conversion Services provided. |
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| 3.5   | Packaging.                Haynes and TIMET shall work in good faith to package Materials with                respect to which Titanium Conversion Services have been provided                in                accordance with good commercial practice so as to protect against                damage                to such Materials that will result from weather or transportation.                In                addition, such Material will be packaged in accordance with any special                requirement of the carrier to which they will be consigned for delivery.                Any specified special packaging costs will be borne by                TIMET. |
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**ARTICLE        4**

**PRODUCTION        AND QUALITY ASSURANCE MATTERS**

| 4.1   | TIMET’s                Technical Assistance.                In order for HAYNES to provide Titanium Conversion Services to TIMET                hereunder, TIMET shall make available to HAYNES technical assistance                to                help HAYNES achieve TIMET’s standard process practice, operating                procedures and product specification as described in Section                2.5(b)(iv). |
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| 4.2   | Documentation.                HAYNES shall provide copies of any documentation related to                non-conformances or defects. |
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| 4.3   | Acceptance                Procedure. |
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| (a)   | The                term “Acceptance Procedure” shall mean and refer to that procedure to be                performed by TIMET the purpose of which is to verify that the Titanium                Conversion Services have been performed by HAYNES in accordance with                the                warranty set forth in Section 6.1. TIMET shall perform the Acceptance                Procedure on titanium products manufactured by HAYNES under this                Agreement                [ * ] following delivery by HAYNES to TIMET of the titanium product                resulting from the Titanium Conversion                Services. |
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| (b)   | If                TIMET determines that the Titanium Conversion Services do not comply                with                the warranty set forth in Section 6.1, TIMET shall notify HAYNES in                writing by means of a “non-conformance form” of such failures or defects                within five (5) days of TIMET’s completion of the Acceptance Procedure                that has resulted in the discovery of the failures or defects. In                such                circumstances, TIMET shall have and be entitled to the rights and                remedies                described in Section 5.1. |
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| (c)   | Subject                to TIMET’s other rights and remedies described in Section 5.1 and                Article 6, if TIMET has not notified HAYNES of any failures or                defects in the Titanium Conversion Services or the titanium product                resulting from the performance by HAYNES of the Titanium Conversion                Services within [ * ] following delivery by HAYNES to TIMET of such                titanium product, or if prior to the expiration of such [ * ] period                TIMET                shall have transferred title to such titanium product to a third                party,                TIMET shall be deemed to have accepted such                product. |
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| 4.4   | Ownership                of Material.                HAYNES disclaims any rights in the Materials delivered to it under                this                Agreement. All Material delivered to HAYNES by TIMET for performance                of                Titanium Conversion Services, including all recoverable scraps generated                in the performance of the services hereunder, shall belong to and                remain                the property of TIMET or its designee(s) and shall be returned by                HAYNES                to TIMET after performance of the Titanium Conversion                Services. |
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| 4.5   | Risk                of Loss.                Risk of loss of the Material and products manufactured therefrom                shall                pass upon their delivery from TIMET to HAYNES for Titanium Conversion                Services FOB HAYNES facility. Risk of loss of the products resulting                from                the Titanium Conversion Services performed by HAYNES shall pass from                HAYNES to TIMET upon their delivery to TIMET FOB HAYNES                facility. |
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| 4.6   | Quality                Assurance Matters. |
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| (a)   | Upon                reasonable advance notice and during normal business hours, HAYNES                shall                permit TIMET to conduct a formal audit of the 4-High Facility as                well as                all related administrative and/or support facilities for quality                assurance                and control purposes (either alone or with any TIMET customer); provided,                however, that such audit shall not disrupt materially the progress                of the                work carried out in the relevant                facilities. |
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| (b)   | HAYNES                agrees to maintain and keep in good working order and repair, all                at its                sole cost and expense, all equipment utilized by HAYNES to perform                Titanium Conversion Services, which shall be deemed to mean such                equipment                shall, at a minimum, meet or exceed the OEM design capability and                functionality for slab, plate and coil                production. |
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| (c)   | HAYNES                and its Affiliates shall maintain the policies and operating practices                for                quality control and assurance processes required to evidence aerospace                and                industrial qualifications required by TIMET or TIMET’s customers. Quality                assurance processes include, without limitation, documentation, record                retention, process improvement agreements and quality assurance system                compliance and audit rights to TIMET or its customers. |
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**ARTICLE        5**

**BREACH        OF WARRANTY; EVENTS OF DEFAULT; REMEDIES**

| 5.1   | Remedies                for Manufacturing or Product Defects Discovered by Acceptance Procedure                or                Discovery of Breach of Warranty.                If TIMET determines by performance of the Acceptance Procedure as                outlined                in Section 4.3 that any Titanium Conversion Services do not comply                with the warranty set forth in Section 6.1, then TIMET shall be                entitled to the following remedies only: |
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| (a)   | HAYNES                shall promptly, at its choice and cost, either (i) re-perform the                defective Titanium Conversion Services (or any part thereof) as may                be                necessary to correct the failures or defects, or (ii) reimburse TIMET                the amount paid by TIMET for the defective Titanium Conversion Services                (or any part thereof), or if TIMET has not yet paid such amounts                to                HAYNES, HAYNES will not invoice TIMET for such                amounts. |
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| (b)   | In                addition, for any Material (in part or whole) rendered unusable as a                result of HAYNES’ gross negligence, HAYNES shall promptly pay to TIMET an                amount equal to the sum of the cost of the Material (as indicated                by                TIMET’s books and records) plus costs associated with scrap preparation                minus a credit for the market value of such unusable Material at                prevailing scrap prices. |
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| 5.2   | Event                of Default.                An “Event of Default” shall mean any of the events listed below. With                respect to an Event of Default listed in Section 5.2(b) or 5.2(c),                HAYNES shall have thirty (30) days from the date of HAYNES’ receipt of                TIMET’s notice of default to remedy such                default. |
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| (a)   | The                occurrence of a Change in Control of HAYNES in which the successor                to                HAYNES or the Operating Assets does not assume all of the obligations                of                the Transaction Documents; provided, however, that a CC Termination                shall                not constitute an Event of Default. |
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| (b)   | Failure                to comply with the requirements of Section 11.1 (as such Section                may be                amended by the Non-Compete Amendment). |
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| (c)   | In                the event that the On-Time Delivery Rate and/or the QTP Rate is less                than                [ * ] for two (2) consecutive months or less than [ * ] for any one                (1)                month; provided, however, that a failure to achieve either the On-Time                Delivery Rate and/or the QTP Rate for the mutually agreed upon incremental                volume increases set forth in clauses (i) and (ii) of Section 2.1(b)                during the first month following each such agreed upon incremental                volume                increase shall not be deemed to be an Event of Default so long as                Haynes                is using commercially reasonable efforts during such one-month period                to                achieve each such incremental volume increase. |
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| 5.3   | Remedies. |
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| (a)   | Upon                the occurrence of an Event of Default that has not been remedied                within                the 30-day cure period set forth in Section 5.2 (if applicable),                TIMET may                terminate this Agreement immediately upon written notice, in which                event                (x) the outstanding principal balance of the Option Note, and all                accrued and unpaid interest thereon, and the entire unearned portion                of                the Fee (as defined in the Access and Security Agreement) shall be                immediately due and payable and (y) Haynes shall pay in good funds to                TIMET within five (5) business days following such termination Twenty                Five                Million Dollars ($25,000,000) as liquidated damages (the “Liquidated                Damages”). The Parties agree and acknowledge that TIMET’s actual Damages                in the event of an Event of Default would be extremely difficult                or                impracticable to ascertain and that the Liquidated Damages represent                the                Parties’ reasonable estimate of such Damages. Upon the occurrence of an                Event of Default set forth in Section 5.2(c) that is the result of                Force                Majeure (as defined in Section 8.1), TIMET’s sole remedy shall be to                terminate this Agreement upon written notice; provided that TIMET                shall                have no obligation to terminate this Agreement in such event, but                without                waiver of such right of termination, TIMET may elect to terminate                this                Agreement at any time that an event of Force Majeure is continuing;                provided, further, that TIMET’s right to terminate this Agreement as a                result of any such event shall cease at such time as the related                event of                Force Majeure ceases. In the event that TIMET elects to terminate                this                Agreement upon an Event of Default that is the result of Force Majeure,                the outstanding principal balance of the Option Note, and all accrued                and                unpaid interest thereon, and fifty percent (50%) of the unearned                portion                of the Fee shall be immediately due and payable to TIMET; however,                no                Liquidated Damages shall be due or                payable. |
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| (b)   | Upon                the occurrence of an Event of Default listed in Section 5.2(a) or                5.2(b)                hereof that has not been remedied within the 30-day cure period set                forth                in Section 5.2 (if applicable), in addition to the remedy set forth in                Section 5.3(a), TIMET shall have all rights and remedies at law or                in                equity against HAYNES or any HAYNES Successor for (i) specific performance                or other equitable relief and (ii) damages in an amount equal to                the                excess, if any, of (x) TIMET’s actual, consequential and incidental                damages arising from the unremedied Event of Default, over (y) the                Liquidated Damages. |
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| (c)   | Upon                the occurrence of an Event of Default listed in Section 5.2(c) hereof,                in                addition to the remedy set forth in Section 5.3(a), the Base Prices                shall                be reduced by twenty five percent (25%) until the Event of Default                is                cured or TIMET elects to terminate the Agreement and receive repayment                of                the balance of the Option Note, and all accrued and unpaid interest                thereon, the entire unearned portion of the Fee (as defined in the                Access                and Security Agreement) and the Liquidated                Damages. |
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| (d)   | In                addition to the remedies set forth in this Agreement, the Parties                shall be                afforded the rights and remedies set forth in the Access and Security                Agreement, including the TIMET remedies set forth in Section 8 of                the                Access and Security Agreement and the Haynes Remedies set forth in                Section                12 of the Access and Security Agreement. |
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**ARTICLE        6**

**WARRANTY**

| 6.1   | HAYNES                Warranty.                HAYNES warrants to TIMET that the Titanium Conversion Services rendered                to                TIMET by HAYNES shall be performed in a good and workmanlike fashion                in                accordance with industry standards and TIMET’s specified process practice,                operating procedures and product specifications consistent with the                terms                set forth in the Submission Sheet. |
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| 6.2   | Investigation                of Claims.                The Parties agree that any claim relating to an alleged breach of                the                foregoing warranty by HAYNES shall be investigated jointly by TIMET                and                HAYNES. |
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| 6.3   | Remedies                for Breach of Warranty.                TIMET shall notify HAYNES of any breach of warranty in Section 6.1                after TIMET has discovered such breach. If it is determined that                HAYNES                has breached the warranty in Section 6.1, TIMET shall be entitled                solely to the remedies set forth in                Section 5.1. |
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**ARTICLE        7**

**INSURANCE;        INDEMNIFICATION**

| 7.1   | Insurance.                As long as this Agreement is in effect and for a period of six (6)                years                thereafter, HAYNES shall maintain (or its Affiliates shall maintain                on                HAYNES’ behalf), at their respective sole cost, the following type of                insurance with insurers reasonably acceptable to                TIMET: |
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| (a)   | Commercial                General Liability Insurance.                The policy shall have a minimum combined single limit of $1,000,000                per                occurrence for bodily injury and property damage with a minimum aggregate                limit of $2,000,000. The policy shall include products/completed                operations, contractual, fellow-employee, broad form property damage,                and                contractor-protective coverages as well as coverage for the hazards                of                explosion, collapse and underground (XCU). The policy shall include                a                cross liability/severability of interests provision and coverage                shall be                on an “occurrence” basis. The policy form shall be no less broad than the                latest version issued by the Insurance Services Office (aka                ISO). |
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| (b)   | Workers’                Compensation/Employers Liability Insurance.                The policy shall have the following                limits: |
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| (c)   | Business                Interruptions and Property Floater.                The policy will cover all risk of loss or damage to all of the Operating                Assets from fire, theft, malicious mischief, explosion, water and                all                other hazards or risks of physical damage included within the meaning                of                the term “extended coverage.” The limit shall be at least equal to the                replacement cost of the Operating Assets. The policy will also contain                business interruption coverage. |
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| (d)   | All                the insurance policies shall provide a waiver of subrogation in favor                of                TIMET.                In addition, the general liability insurance policy or policies and                the                policy insuring against property damage shall name TIMET as an Additional                Insured. |
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| (e)   | Certificate                of Insurance.                Within a reasonable time after signing this Agreement, HAYNES shall                provide TIMET with an insurance certificate(s) as evidence that the                required insurance is in force. |
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| (f)   | Renewals.                HAYNES will provide renewal certificates to TIMET as long as this                Agreement is in force. Such certificates shall specify that TIMET                shall be                given thirty (30) days notice prior to cancellation, material change                or                notice of non-renewal of any of the required insurance policies.                The                certificates shall also specify that HAYNES’ insurance shall be primary in                the event of any duplication with that of TIMET. If requested, HAYNES                shall provide TIMET with copies of the required insurance                policies. |
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| 7.2   | Indemnification                and Waiver.                HAYNES agrees to defend and indemnify TIMET, its employees, directors,                stockholders officers and agents for any claims, costs, expenses                (including reasonable attorney fees) or liability arising from injury                (including death and disease) or Damage that arises out of HAYNES’                performance of the Titanium Conversion Services under this Agreement                unless such injury or Damage shall be the result of the sole negligence                of                TIMET. TIMET shall provide HAYNES with notice of any matters that                qualify                for indemnification as soon as practicable. The foregoing indemnity                shall                not apply to claims, costs, expenses or liability arising from injury                or                Damage resulting from products produced by HAYNES through the performance                of Titanium Conversion Services. With the exception of TIMET’s obligations                under Section 4(b)(ii) of the Access and Security Agreement, in no                event                shall TIMET be liable for damage to, or loss of, HAYNES’ property,                equipment or tools or that of HAYNES’ employees or sub-contractors                regardless of the actual or alleged negligence of TIMET. HAYNES shall                indemnify TIMET for any such claims. |
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**ARTICLE        8**

**FORCE        MAJEURE; CONTINGENCIES**

| 8.1   | Force                Majeure.                The occurrence of an event such that delivery of the Titanium Conversion                Services is prevented by any cause, whether foreseeable or unforeseeable,                beyond HAYNES’ reasonable control shall be deemed an event of Force                Majeure (a “Force Majeure”), including, without limitation, the following                causes: acts of God; judgments or orders of any court; a change in                the                laws that would expressly prohibit HAYNES’ performance of the Titanium                Conversion Services; power failure; a catastrophic breakdown of the                Operating Assets; acts of war; acts of terrorism, riot, civil strife,                insurrection or rebellion; labor disputes; or fire, explosion, earthquake,                storm, flood or other severe weather condition. The term “Force Majeure”                shall not be construed, however, to include commercial                impracticability. |
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| 8.2   | Notice;                Mitigation.                As soon as practicable after the occurrence of Force Majeure, HAYNES                shall                give notice to TIMET of the suspension of performance (stating therein                the                nature of the suspension, the obligation(s) likely to be affected,                the                reasons therefor, and a reasonable, good faith estimate of the period                of                time during which provision of the Titanium Conversion Services is                expected to be prevented), and thereupon the contractual delivery                schedule                or dates of completion shall be extended by a period of time as necessary                to reflect the effect of the delay. HAYNES shall take all reasonable                steps                to minimize the impact of the Force Majeure under this Agreement                and shall                resume provision of the Titanium Conversion Services as soon as reasonably                possible. The Parties agree to negotiate in good faith during the                continuance of any Force Majeure with respect to possible ways to                minimize                the effects of the Force Majeure on the                Parties. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ARTICLE        9**

**CONFIDENTIALITY**

| 9.1   | Obligations.                During the term of this Agreement and for a ten (10) year period                thereafter, no Party shall disclose to any third party (including                without                limitation, any subcontractor of such Party) any “Confidential                Information” (as defined below) of any other without such Party’s prior                written consent. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.2   | Confidential                Information Defined.                “Confidential Information” means all confidential or proprietary                information in whatever form furnished by or on behalf of one Party                to the                other Party, except information which the receiving Party can demonstrate                that it: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | is                generally available to, or known by, the public other than by reason                of                disclosure by the receiving Party; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | was                obtained by the receiving Party from a source other than the other                Party                hereto; provided, however, that such source was not bound by a duty                of                confidentiality with respect to such                information; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | was                in the lawful possession of the receiving Party prior to the date                of this                Agreement without confidentiality restrictions;                or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | is                intentionally made available by the disclosing Party to a third person                on                an unrestricted basis. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.3   | Exceptions.                The restrictions set forth in Section 9.1 above shall not be deemed                to include disclosures: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | to                officers, directors, employees, agents, lenders, contractors, or                representatives of a Party or an Affiliate of such Party who need                to know                such information and agree to be bound by the terms                hereof; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | required                to be made by law, rule, regulation, order of any court or regulatory                body, discovery request, civil investigative demand, or judicial                process;                or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | to                report the terms of this Agreement or file this Agreement as an exhibit                as                required by applicable laws or regulations concerning financial reporting                or disclosure, subject to each Party’s requirement to seek to protect                proprietary or confidential information contained in this Agreement                by way                of protective order, confidential treatment request or similar                process. |
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**ARTICLE        10**

**PROVISION        OF TITANIUM PRODUCTS**

**ARTICLE        11**

**NON-COMPETITION**

| 11.1   | Non-Compete                Obligations.                In view of, among other things, the payment of the Fee by TIMET to                HAYNES,                the proprietary information and technical assistance to be made available                to HAYNES and TIMET’s provision of the titanium products as set forth in                Article 10, during the term of this Agreement, HAYNES (including                its                Affiliates) shall not, except as contemplated in this Agreement with                respect to the performance of Titanium Conversion Services for the                benefit                of TIMET and its Affiliates or designees, directly or indirectly                through                any Affiliate or other person in which it has an equity interest,                anywhere                in the world, (i) provide, directly or indirectly, Titanium                Conversion Services with the Operating Assets to any third party,                or grant                any third party access to, or the right to use, either directly or                indirectly, the Operating Assets for purposes of performing any Titanium                Conversion Services; or (ii) engage in the manufacturing of titanium                or titanium alloys other than cold reduced titanium seamless tubing                (except as specifically permitted in this Agreement). In the event                that                TIMET has not fulfilled its obligations under Article 10 hereof relating                to TIMET’s supply of titanium sheet and plate products to HAYNES, HAYNES                shall be relieved of its obligations under clause (ii) of this Article                11                for the period in which such product shortfall occurred (on an annualized                basis) but only to the extent of the actual product supply                shortfall. |
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| 11.2   | Non-Compete                Amendment.                In the event of a Change in Control, the successor to HAYNES or its                assets                (the “HAYNES Successor”) shall have the option to amend the provisions of                Section 11.1(i) as described below by providing written notice to                TIMET of                the exercise of such option within twelve (12) months of the effective                date of such Change in Control (the “Non-Compete Amendment”). Upon                exercise of the option, the HAYNES Successor shall be required to                pay                TIMET a non-refundable fee (the “Non-Compete Amendment Fee”) within five                (5) business days following TIMET’s receipt of such notice of exercise in                the amount of $15,000,000 in immediately available U.S. funds. If                HAYNES                exercises the option and pays TIMET the Non-Compete Amendment Fee,                the                unearned portion of the Fee shall be reduced by the amount of the                Non-Compete Amendment Fee. |
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| 11.3   | Non-Compete                Amendment Provision:                Upon the HAYNES Successor’s exercise of the option with respect to the                Non-Compete Amendment and payment of the Non-Compete Amendment Fee,                Section 11.1(i) shall be deleted in its entirety and replaced with                the                following provision: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11.4   | No                Further Changes; Conditions                With the exception of the provision contained in Section 11.3 hereof,                the                Non-Compete Amendment shall not be construed to amend or modify any                other                term or condition of this Agreement or the Transaction Documents.                The                HAYNES Successor shall be permitted to exercise the option with respect                to                the Non-Compete Amendment only if such successor (i) has assumed                all of                the obligations of HAYNES under this Agreement and the Transaction                Documents and (ii) is not in default of this Agreement or the Transaction                Documents. |
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**ARTICLE        12**

**GOVERNING        LAW; SETTLEMENT OF DISPUTES**

| 12.1   | Governing                Law.                This Agreement shall be governed, interpreted, construed and enforced                in                accordance with the laws of the State of Delaware without recourse                to the                law regarding the conflicts of law. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | If                there shall be any Dispute, the representatives of the Parties should                use                their best efforts to resolve the matter on an amicable basis and                in a                manner fair to the Parties hereto. If one Party notifies another                Party                that a Dispute has arisen and the Parties are unable the resolve                such                Dispute within a period of thirty (30) days from such notice, then                the                matter may be referred to senior executive officers (Chief Operating                Officer or its equivalent) of HAYNES and TIMET for attempted resolution,                who shall have a further sixty (60) days from such notice (or such                time as                both Parties shall mutually agree) to attempt to resolve such Dispute.                No                recourse to arbitration under this Agreement shall take place unless                and                until such procedure has been followed. |
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| (b)   | If                a Dispute is not resolved in the manner and within the period described                in                Section 12.2(a), any Party may make a written demand that the dispute                be                resolved through binding arbitration (an “Arbitration Demand”) in                accordance with the procedures set forth                below. |
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| (c)   | Any                Arbitration Demand shall state specifically the nature of the claim(s),                the relevant time periods, the document(s) if any that are alleged                to                govern the dispute, the names of any relevant known witnesses associated                with the either of the parties, the identification of any third parties                that may be relevant to the dispute, a specific dollar amount alleged                to                be owing, if any, and any other specific information that may be                necessary                to define the nature of the dispute. The party receiving the Arbitration                Demand shall provide a written response (an “Arbitration Response”) within                ten (10) days after receiving the Arbitration Demand. The Arbitration                Response may be a simple denial or may set forth in writing any                counterclaims including the same type of information required in                an                original Arbitration Demand. If an Arbitration Response includes                any                counterclaims or proposals, then the party originally demanding the                Arbitration may reply within ten (10) days after receiving the Arbitration                Response. If any party fails to respond to any notice, the party                shall be                deemed to deny the demand. |
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| (d)   | The                arbitration shall be handled by a single neutral arbitrator. The                Arbitration Demand shall also include the name of one (1) person                proposed                to serve as an arbitrator to decide the dispute. If the designated                person                is not acceptable to the other party, then the party responding to                the                Arbitration Demand shall propose the name of one (1) arbitrator.                If that                person is unacceptable to the party seeking the Arbitration, then                both                parties shall cooperate to select a mutually agreeable arbitrator.                In the                event that the Parties cannot agree to the selection of a single                neutral                arbitrator, the Parties shall submit the selection of the arbitrator                to                the procedures for the selection of an arbitrator set forth by the                American Arbitration Association, “JAMS” or a similar recognized                alternative dispute resolution body agreed upon by the Parties. The                fees                and expenses of the neutral arbitrator shall be split by the parties                unless the Arbitration Award provides                differently. |
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| (i)   | The                Arbitration shall be held in Wilmington, Delaware as soon as possible                within ninety (90) calendar days after the selection of arbitrator                who                will hear the case. |
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| (ii)   | Each                Party shall have the right to engage in reasonable pre-arbitration                discovery in the form of requests for production of documents and                depositions as allowed by the arbitrator. Presentation of the case                shall                include: opening statements, testimony of necessary witnesses, stipulated                or properly authenticated documents, and closing statements. No documents                may be submitted as evidence unless the documents have been provided                to                the opposing party in advance of the arbitration as allowed by the                arbitrator. Either party may demand that a transcript of the hearing                be                prepared. If such a demand is made, then the parties shall each pay                one-half of the cost of the transcript. |
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| (iii)   | The                arbitrator shall issue a reasoned decision in writing within thirty                (30)                days of the arbitration. Delaware law, in conjunction with any applicable                federal law, shall be used by the arbitrator to decide all questions,                claims or disputes, notwithstanding any choice of law provisions                to the                contrary. The arbitrator shall have the authority to order the losing                party to pay some or all or the fees and expenses of the arbitration                proceeding to the prevailing party as part of the arbitration award,                including but not limited to any expert witness fees. The arbitrator                shall                not have the authority to award any incidental, consequential, special                (including multiple or punitive), or other indirect damages to the                other                party, whether such claim arises under contract, tort (including                strict                liability) or other theory of law. The decision shall be final and                binding                on the parties, except that either party may appeal as provided in                the                Delaware Arbitration Act. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (iv)   | The                arbitration award reasoned decision may be enforced in any court                having                jurisdiction of the parties and the subject                matter. |
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**ARTICLE        13**

**TERM        AND TERMINATION**

| 13.1   | Term.                This Agreement shall become effective commencing on the date on which                the                last of the following conditions is met and shall continue until                the date                twenty (20) years after the commencement date unless earlier terminated                pursuant to Section 13.2: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | Execution                and delivery of this Agreement and the Access and Security Agreement;                and |
|-----------------|-------------------------------------------------------------------------------------------------------------------|
| (b)   | TIMET’s                payment to HAYNES of the Fee as described in Section 2(c) of the                Access                and Security Agreement. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13.2   | Termination.                This Agreement may be terminated as set forth herein                below. |
|------------------|--------------------------------------------------------------------------------------------------------|
| (a)   | TIMET                may terminate this Agreement upon written notice of termination to                HAYNES                (i) upon the occurrence of an Event of Default that has not been                remedied within the 30-day cure period set forth in Section 5.2 (if                applicable), or (ii) upon TIMET’s exercise of its rights under                Section 8(b) of the Access and Security                Agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | HAYNES                may terminate this Agreement upon written notice of termination to                TIMET                if at any time more than 50% of all undisputed outstanding invoices                issued                to TIMET have been unpaid for a period of thirty (30) days following                TIMET’s receipt of written notice of default from                HAYNES. |
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|   | (c) | Upon                  a Change in Control of HAYNES, a HAYNES Successor shall have the                  right to                  terminate this Agreement (a “CC Termination”) by providing written notice                  of termination to TIMET within twelve (12) months of the effective                  date of                  such Change in Control, and such CC Termination shall become effective                  upon the last day of the ten- (10) year period following the date                  on which                  the notice is received by TIMET (the “Effective Termination Date”). As a                  result of its election of a CC Termination, the HAYNES Successor                  shall be                  required to pay to TIMET a termination fee that is equal to (i)                  Twenty                  Five Million Dollars ($25,000,000) plus (ii) the entire unearned                  portion                  of the Fee calculated as of the Effective Termination Date (the                  “Termination Fee”). The Termination Fee shall be due and payable to TIMET                  in equal monthly payments during the period beginning upon TIMET’s receipt                  of the notice of termination and ending upon the Effective Termination                  Date. Upon its election of a CC Termination, HAYNES shall deliver                  to TIMET                  a promissory note substantially in the form attached hereto as                  Exhibit B                  in the amount of the Termination Fee and with a payment schedule                  as                  reflected in this Section 13.2(c); provided, however, that the                  Termination                  Fee shall not bear interest prior to maturity, and, therefore,                  the                  interest provisions in Exhibit B (other than the Default Rate (as                  defined                  in Exhibit B) shall be deleted; provided, further, that upon a                  default                  thereunder, the Termination Fee shall bear interest at the Default                  Rate. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3   | Consequences                of Termination.                As a consequence of termination of this Agreement by any Party in                accordance with this Article 13, all rights and obligations of the                Parties under this Agreement shall terminate without any liability                of any                Party to the other (except for liability of any Party then in breach                under                this Agreement for such breach). |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13.4   | Waiver.                Any waiver of the option to terminate this Agreement shall not constitute                a waiver of the right to claim Damages or the right to terminate                this                Agreement for any subsequent breach or occurrence of the same or                other                events herein specified. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13.5   | Survival.                The obligations of the Parties under Articles 5 (Breach of Warranty;                Events of Default; Remedies), 6 (Warranty), 7 (Insurance;                Indemnification), 9 (Confidentiality), 12 (Governing Law; Settlement                of Disputes) and 13 (Term and Termination) shall survive termination                or                expiration of this Agreement. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ARTICLE        14**

**GENERAL**

| 14.1   | Assignment.                All of the terms, covenants, obligations, warranties, and conditions                of                this Agreement shall be binding upon, and inure to the benefit of                and be                enforceable by, the Parties hereto and their respective successors                and                permitted assigns. This Agreement and the rights and obligations                of the                Parties hereunder may not be assigned by any Party without the prior                written consent of the other Parties. Notwithstanding the foregoing,                HAYNES shall be permitted to assign this Agreement to its successor                in                connection with a Change in Control provided that such successor                assumes                all of HAYNES’ obligations under this Agreement and each of the other                Transaction Documents. Except in reference to TIMET’s successor(s) and                permitted assignee(s), the term designee(s) as used in this Agreement                shall not be construed to alleviate TIMET from its obligations hereunder                or permit TIMET to assign its rights                hereunder. |
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| 14.2   | Severability.                If any provision of this Agreement or application of any such provision                to                any person or circumstance shall be held invalid, illegal, or                unenforceable in any respect by a court of competent jurisdiction,                such                invalidity, illegality, or unenforceability shall not affect any                other                provision hereof. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.3   | Notices.                All notices, requests, demands and other communications required                or                permitted to be given hereunder shall be in writing and shall be                deemed to                have been duly given when delivered personally, when sent by verified                facsimile (with confirmation copy sent by courier) or three (3) business                days after being sent by courier, in each case addressed as                follows: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.4   | Specific                Performance.                Each of the Parties hereto acknowledges and agrees that the other                Parties                would be damaged irreparably in the event any of the provisions of                this                Agreement are not performed in accordance with their specific terms                or                otherwise are breached. Accordingly, each of the Parties agrees that                the                any Party shall be entitled to an injunction or injunctions to prevent                breaches of the provisions of this Agreement and to enforce specifically                this Agreement and the terms and provisions hereof, in addition to any                other remedy to which it may be entitled in accordance with the applicable                law set forth in Section 12.1. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.5   | No                Third Party Beneficiaries.                This Agreement shall not be deemed to create or confer, nor shall                the same                create or confer, any rights on or upon third                parties. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.6   | Amendment;                Waiver.                This Agreement may be amended, modified, supplemented, superseded                or                cancelled, and any of the terms, covenants, guarantees, warranties,                or                conditions hereof may be waived, only by a written instrument executed                by                the Parties or, in the case of a waiver, by or on behalf of the Party                waiving compliance. The failure of any Party at any time or times                to                require performance of any provision hereof shall in no manner affect                the                right at a later time to enforce the same. No waiver by any Party                of any                condition, or of any breach of any term, covenant, guarantee, or                warranty                contained in this Agreement shall be deemed to be or construed as                a                further or continuing waiver of any such condition or breach or a                waiver                of any other condition or of any breach of any other term, covenant,                guarantee, or warranty. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.7   | Captions.                The captions contained in this Agreement are solely for purposes                of                identification and convenient reference only and shall in no way                affect,                alter or vary the meaning, construction or interpretation hereof                or                thereof. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.8   | Integration.                The exhibits to this Agreement are hereby incorporated by reference                in                their entirety. If there is any inconsistency among this Agreement                or any                of its exhibits, this Agreement shall prevail over the other                documents. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.9   | Effectiveness                of this Agreement.                This Agreement shall be effective upon the completion of the following                conditions: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | TIMET’s                perfection of its first priority interest in the Collateral (as defined                in                the Access and Security Agreement); and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | TIMET’s                payment of the Fee. |
|-----------------|--------------------------------------------------|

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**Exhibit        A: Product, Price List and Maximum Cycle Times**

**[        * ]**

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|   | (a) | Twenty-three                  (23) successive substantially equal quarterly installments of principal,                  plus accrued and unpaid interest, shall be made quarterly on March                  31,                  June 30, September 30 and December 31 of each year, commencing                  on the                  quarter that begins eighteen (18) months from the Loan Date (as                  defined in                  the Conversion Services Agreement dated as of November 17, 2006                  by and                  between Make and Payee; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | A                  final installment in the amount of the entire principal balance                  then                  remaining unpaid, plus all accrued and unpaid interest, shall be                  due and                  payable on ______________, 20__ [six years from the date made]. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Maker                  shall fail to pay when due any principal of or other amount due                  on this                  Note and such failure shall continue for five (5) days after the                  date such                  payment becomes due. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The                  occurrence of a Default under and as defined in the Access and                  Security                  Agreement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

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