Document:

Exhibit
10.5

AMENDMENT NUMBER ONE

TO THE

HAYNES INTERNATIONAL,
INC.

SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN

The Haynes
International, Inc. Supplemental Executive Retirement Plan (“Plan”) is hereby
amended by Haynes International, Inc. (the “Company”) as hereinafter provided.

BACKGROUND

The Company
reserved the right to amend the Plan pursuant to SECTION 5.2 of the Plan and
now desires to amend the Plan to (i) delete all provisions pertaining to a
Change in Control Benefit (as defined in the Plan) such that a Change in
Control Benefit shall no longer be available under the Plan, and (ii) modify
the definition of “Compensation”. For the avoidance of doubt, the consummation
of a plan of reorganization of the Company and the transactions contemplated
thereby as approved by the U.S. Bankruptcy Court for the Southern District of
Indiana on August 16, 2004 with respect to the filing of a voluntary petition
for bankruptcy by the Company under Chapter 11 of Title 11 of the U.S. Code (11
USC Section 101, ET. SEQ.) in the U.S. Bankruptcy Court for the Southern
District of Indiana shall not constitute a Change in Control for purposes of
the Plan.

AMENDMENT

The Plan is hereby
amended, effective as of August 30, 2004, as follows:

1.                SECTION
1.6, SECTION 1.7 and SECTION 3.2 of the Plan are hereby deleted in their
entirety.

2.                The
validity, meaning and effect of this Amendment shall be determined in
accordance with the laws of the State of Indiana applicable to contracts made and
to be performed in that State.

3.                This
Amendment amends the Plan to the extent provided herein only and all other
provisions thereof shall remain in full force and effect.

This
Amendment to the Plan is executed as of the 30th day of August, 2004.

	
  

  	
  “COMPANY”

  
	
   

  	
   

  
	
   

  	
  HAYNES INTERNATIONAL,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jean C. Neel

  	
   

  
	
   

  	
   

  
	
   

  	
  Printed:

  	
  Jean C. Neel

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President
  Corporate Affairs and Corporate Secretary

  
	
   

  	
   

  	
   

  	
   

  
							

 

 2Exhibit
10.6

HAYNES INTERNATIONAL,
INC.

Supplemental Executive
Retirement Plan(s)

MASTER TRUST
AGREEMENT

Effective January
1, 2003

TABLE OF CONTENTS

	
  Article

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE 1

  	
   

  	
  Name, Intentions, Irrevocability, Deposit and
  Definitions.

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1.

  	
   

  	
  Name

  	
   

  	
  1

  
	
  1.2.

  	
   

  	
  Intentions

  	
   

  	
  1

  
	
  1.3.

  	
   

  	
  Irrevocability; Creditor Claims

  	
   

  	
  1

  
	
  1.4.

  	
   

  	
  Initial Deposit

  	
   

  	
  2

  
	
  1.5.

  	
   

  	
  Additional Definitions

  	
   

  	
  2

  
	
  1.6.

  	
   

  	
  Grantor Trust

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
  General Administration

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1.

  	
   

  	
  Committee Directions and Administration Before
  Change in Control

  	
   

  	
  4

  
	
  2.2.

  	
   

  	
  Administration Upon Change in Control

  	
   

  	
  4

  
	
  2.3.

  	
   

  	
  Contributions

  	
   

  	
  4

  
	
  2.4.

  	
   

  	
  Trust Fund

  	
   

  	
  5

  
	
  2.5.

  	
   

  	
  Distribution of Excess
  Trust Fund to Employers

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  	
  Powers and Duties of Trustee

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1.

  	
   

  	
  Investment Directions

  	
   

  	
  5

  
	
  3.2.

  	
   

  	
  Investment Upon Change in Control

  	
   

  	
  5

  
	
  3.3.

  	
   

  	
  Management of Investments

  	
   

  	
  6

  
	
  3.4.

  	
   

  	
  Securities

  	
   

  	
  8

  
	
  3.5.

  	
   

  	
  Substitution

  	
   

  	
  8

  
	
  3.6.

  	
   

  	
  Distributions

  	
   

  	
  8

  
	
  3.7.

  	
   

  	
  Trustee Responsibility Regarding Payments on
  Insolvency

  	
   

  	
  11

  
	
  3.8.

  	
   

  	
  Costs of Administration

  	
   

  	
  13

  
	
  3.9.

  	
   

  	
  Trustee Compensation and Expenses

  	
   

  	
  13

  
	
  3.10.

  	
   

  	
  Professional Advice

  	
   

  	
  13

  
	
  3.11.

  	
   

  	
  Payment on Court Order

  	
   

  	
  13

  
	
  3.12.

  	
   

  	
  Protective Provisions

  	
   

  	
  14

  
	
  3.13.

  	
   

  	
  Indemnifications

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
  Insurance Contracts

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1.

  	
   

  	
  Types of Contracts

  	
   

  	
  15

  

 

 i
 

 

	
  4.2.

  	
   

  	
  Ownership

  	
   

  	
  15

  
	
  4.3.

  	
   

  	
  Restrictions on Trustee’s Rights

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
  Trustee’s Accounts

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1.

  	
   

  	
  Records

  	
   

  	
  15

  
	
  5.2.

  	
   

  	
  Annual Accounting; Final Accounting

  	
   

  	
  16

  
	
  5.3.

  	
   

  	
  Valuation

  	
   

  	
  16

  
	
  5.4.

  	
   

  	
  Delegation of Duties

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  	
  Resignation or Removal of Trustee

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1.

  	
   

  	
  Resignation; Removal

  	
   

  	
  17

  
	
  6.2.

  	
   

  	
  Successor Trustee

  	
   

  	
  17

  
	
  6.3.

  	
   

  	
  Settlement of Accounts

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  	
  Controversies, Legal Actions and Counsel

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1.

  	
   

  	
  Controversy

  	
   

  	
  18

  
	
  7.2.

  	
   

  	
  Joinder of Parties

  	
   

  	
  18

  
	
  7.3.

  	
   

  	
  Employment of Counsel

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  	
  Insurers

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1.

  	
   

  	
  Insurer Not a Party

  	
   

  	
  18

  
	
  8.2.

  	
   

  	
  Authority of Trustee

  	
   

  	
  18

  
	
  8.3.

  	
   

  	
  Contract Ownership

  	
   

  	
  18

  
	
  8.4.

  	
   

  	
  Limitation of Liability

  	
   

  	
  19

  
	
  8.5.

  	
   

  	
  Change of Trustee

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
   

  	
  Amendment and Termination

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1.

  	
   

  	
  Amendment

  	
   

  	
  19

  
	
  9.2.

  	
   

  	
  Final Termination

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
   

  	
  Miscellaneous

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1.

  	
   

  	
  Directions Following Change in Control

  	
   

  	
  20

  
	
  10.2.

  	
   

  	
  Taxes

  	
   

  	
  21

  
	
  10.3.

  	
   

  	
  Third Persons

  	
   

  	
  21

  
	
  10.4.

  	
   

  	
  Nonassignability; Nonalienation

  	
   

  	
  21

  
	
  10.5.

  	
   

  	
  Applicable Law

  	
   

  	
  21

  
	
  10.6.

  	
   

  	
  Notices and Directions

  	
   

  	
  21

  
	
  10.7.

  	
   

  	
  Successors and Assigns

  	
   

  	
  21

  

 

 ii
 

 

	
  10.8.

  	
   

  	
  Gender and Number

  	
   

  	
  22

  
	
  10.9.

  	
   

  	
  Headings

  	
   

  	
  22

  
	
  10.10.

  	
   

  	
  Counterparts

  	
   

  	
  22

  
	
  10.11.

  	
   

  	
  Beneficial Interest

  	
   

  	
  22

  
	
  10.12.

  	
   

  	
  The Trust and Plans

  	
   

  	
  22

  
	
  10.13.

  	
   

  	
  Effective Date

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Plans

  	
   

  	
  23

  

 

 iii

MASTER TRUST AGREEMENT

FOR

HAYNES INTERNATIONAL,
INC.

SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN(S)

THIS MASTER TRUST
AGREEMENT (“Master Trust Agreement”) is made and entered into as of January 13,
2003, between Haynes International, Inc., a Delaware corporation (the
“Company”), and Legacy Trust Company, Inc., a Florida corporation (the
“Trustee”), to evidence the master trust (the “Trust”) to be established,
pursuant to those executive deferral plans or other arrangements of the Company
listed in Exhibit A (the “Plans”) now or hereafter existing that require the
establishment of a trust, for the benefit of a select group of management or
highly compensated employees and/or Directors, as hereinafter defined, who
contribute materially to the continued growth, development and business success
of the Company and those subsidiaries of the Company, if any, that participate
in the Plans (collectively, “Subsidiaries,” or singularly, “Subsidiary”).

ARTICLE 1

NAME, INTENTIONS,
IRREVOCABILITY,

DEPOSIT AND
DEFINITIONS

1.1.          NAME.
The name of the Trust created by this Agreement (the “Trust”) shall be:

MASTER TRUST AGREEMENT
FOR

HAYNES NTERNATIONAL, INC.

SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN(S)

1.2.          INTENTIONS.
The Company wishes to establish the Trust and to contribute to the Trust assets
that shall be held therein, subject to the claims of the Company’s and the
Subsidiaries’ creditors in the event of their Insolvency (as defined below)
until paid to Participants, as hereinafter defined, and their Beneficiaries, as
hereinafter defined, in such manner and at such times as specified in the
Plans, as hereinafter defined. It is the intention of the parties that this
Trust shall constitute an unfunded arrangement and shall not affect the status
of the Plans as unfunded plans maintained for the purpose of providing
supplemental compensation for a select group of management or highly
compensated employees and/or Directors for purposes of Title I of ERISA (as
defined below). In addition, it is the intention of the Company and the Subsidiaries
to make contributions to the Trust to provide themselves with a source of funds
to assist them in the meeting of their liabilities under the Plans.

1.3.          IRREVOCABILITY;
CREDITOR CLAIMS. The Trust hereby established shall be irrevocable. Except as
otherwise provided in Sections 2.5 and 9.2, the principal of the Trust, and any
earnings thereon,

shall be held separate and apart from other finds of the Company and
the Subsidiaries and shall be used exclusively for the uses and purposes of the
Participants and the general creditors of the Company and the Subsidiaries as
herein set forth. The Participants and their Beneficiaries shall have no
preferred claim on, or any beneficial ownership interest in, any assets of the
Trust. Any rights created under the Plans and this Master Trust Agreement shall
be mere unsecured contractual rights of the Participants and their
Beneficiaries against the Company and the Subsidiaries. Any assets held by the
Trust will be subject to the claims of the Company’s and the Subsidiaries’
general creditors under federal and state law in the event of Insolvency.

1.4.          INITIAL
DEPOSIT. The Company hereby deposits with the Trustee in trust $100, which
shall become the principal of the Trust to be held, administered and disposed
of by the Trustee as provided in this Master Trust Agreement

1.5.          ADDITIONAL
DEFINITIONS. In addition to the definitions set forth above, for purposes
hereof, unless otherwise clearly apparent from the context, the following terms
have the following indicated meanings:

(a)           “Beneficiary”
shall mean one or more persons, trusts, estates or other entities, designated
in accordance with a Plan, that are entitled to receive benefits under a Plan
upon the death of a Participant.

(b)           “Board”
shall mean the board of directors of the Company.

(c)           “Change
in Control” shall be deemed to occur if.

(i)            Any
“person” (as that term is used in Section 13 and 14(d)(2) of the Securities
Exchange Act of 1934 (“Exchange Act”)) becomes the beneficial owner (as that term
is used in Section 13(d) of the Exchange Act), directly or indirectly, of fifty
percent (50%) or more of the Company’s capital stock entitled to vote in the election
of Directors;

(ii)           During
any period of not more than two consecutive years, not including any period
prior to the adoption of this Plan, individuals who, at the beginning of such period
constitute the Board, and any new Director (other than a Director designated by
a person, who has entered into an agreement with the Company to effect a transaction
described in clause (i), (iii), (iv) or (v) of this Section 1.5(c)) whose
election by the board of directors or nomination for election by the Company’s stockholders
was approved by a vote of at least three-fourths (3/4ths) of the Directors then
still in office, who either were Directors at the beginning of the period or
whose election or nomination for election was previously so approved, cease for
any reason to constitute at least a majority thereof;

(iii)          The shareholders of the Company approve any consolidation
or merger of the Company, other than a consolidation or merger of the Company
in which the holders of the common stock of the Company immediately prior to
the

 2
 

consolidation or merger hold more than fifty (50%) of the
common stock of the surviving corporation immediately after the consolidation
or merger;

(iv)          The
shareholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company, or

(v)           The
shareholders of the Company approve the sale or transfer of all or substantially
all of the assets of the Company to parties that are not within a “controlled group
of corporations” (as defined in Code Section 1563) in which the Company is a
member.

(d)           “Committee”
shall mean the Retirement Committee appointed by the Board to administer this
Trust.

(e)           “Director”
shall mean any member of the Board of Directors of the Company or any
Subsidiary.

(f)            “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as it may be
amended from time to time.

(g)           “Insolvent”
shall have the meaning set forth in Section 3.7(a) below.

(h)           “Insolvent
Entity” shall have the meaning set forth in Section 3.7(a) below.

(i)            “IRS”
shall mean the Internal Revenue Service.

(j)            “Participant”
shall mean a person who is a participant in one or more of the Plans in
accordance with their terms and conditions.

(k)           “Payment
Schedule” shall have the meaning set forth in Section 3.6(b) below.

(l)            “Plan(s)”
shall mean those executive deferral plans or other arrangements of the Company
listed in Exhibit A.

(m)          “Plan
Year” shall mean the Plan Year chosen for this Master Trust Agreement by the
Board.

(n)           “Trust
Fund” shall mean the assets held by the Trustee pursuant to the terms of this
Master Trust Agreement and for the purposes of the Plans.

1.6.          GRANTOR
TRUST. The Trust is intended to be a “grantor trust,” of which the Company and
the Subsidiaries are the grantors, within the meaning of subpart E, part I,
subchapter J, chapter 1, subtitle A of the Internal Revenue Code of 1986, as
amended, and the Trust shall be construed accordingly.

 3
 

ARTICLE 2

GENERAL
ADMINISTRATION

2.1.          COMMITTEE
DIRECTIONS AND ADMINISTRATION BEFORE CHANGE IN CONTROL. Until a Change in
Control has occurred, this Section 2.l shall be effective and the Committee
shall direct the Trustee as to the administration of the Trust in accordance
with the following provisions.

(a)           The
Committee shall be identified to the Trustee by a copy of the resolution of the
Board appointing the Committee. In the absence thereof, the Board shall be the
Committee. Persons authorized to give directions to the Trustee on behalf of
the Committee shall be identified to the Trustee by written notice from the
Committee, and such notice shall contain specimens of the authorized
signatures. The Trustee shall be entitled to rely on such written notice as
evidence of the identity and authority of the persons appointed until a written
cancellation of the appointment, or the written appointment of a successor, is received
by the Trustee.

(b)           Directions
by the Committee, or its delegate, to the Trustee shall be in writing and
signed by the Committee or persons authorized by the Committee, or may be made
by such other method as is acceptable to the Trustee.

(c)           The
Trustee may conclusively rely upon directions from the Committee in taking any
action with respect to this Master Trust Agreement, including the making of
payments from the Trust Fund and the investment of the Trust Fund pursuant to
this Master Trust Agreement. The Trustee shall have no liability for actions taken,
or for failure to act, on the direction of the Committee. The Trustee shall
have no liability for failure to act in the absence of proper written
directions.

(d)           The
Trustee may request instructions from the Committee and shall have no duty to
act or liability for failure to act if such instructions are not forthcoming
from the Committee. If requested instructions are not received within a
reasonable time, the Trustee may, but is under no duty to, act on its own discretion
to carry out the provisions of this Master Trust Agreement in accordance with
this Master Trust Agreement and the Plans.

2.2.          ADMINISTRATION
UPON CHANGE IN CONTROL. In the event of a Change in Control, the authority of
the Committee to administer the Trust and direct the Trustee, as set forth in Section
2.1 above, shall cease, and the Trustee shall have complete authority to
administer the Trust.

2.3.          CONTRIBUTIONS.
Except as provided in any Plan, the Company and the Subsidiaries, in their sole
discretion, may at any time, or from time to time, make additional deposits of
cash, marketable securities, annuities or insurance policies in trust with the
Trustee to augment the principal to be held, administered and disposed of by
the Trustee as provided in this Master Trust Agreement. Neither the Trustee nor
any Participant or Beneficiary shall have any right to compel such additional
deposits. The Trustee shall have no duty to collect or enforce payment to it of
any contributions or to require that any contributions be made, and shall have
no duty to compute any

 4
 

amount to be paid to it nor to determine whether amounts paid comply with
the terms of the Plans; provided, however, that following a Change in Control,
the Trustee shall have the right, in its sole and absolute discretion, to
compel a contribution to the Trust from the Company to make up for any
shortfall between (i) the anticipated benefit obligations and administrative
expenses that are to be paid under the Plans and Trust and (ii) the assets of
the Trust Fund.

2.4.          TRUST
FUND. The contributions received by the Trustee from the Company and the
Subsidiaries shall be held and administered pursuant to the terms of this
Master Trust Agreement as a single fund without distinction between income and
principal and without liability for the payment of interest thereon except as
expressly provided in this Master Trust Agreement. During the term of this
Trust, all income received by the Trust, net of expenses and taxes, shall be
accumulated and reinvested.

2.5.          DISTRIBUTION
OF EXCESS TRUST FUND TO EMPLOYERS. In the event that the Committee, prior to a
Change in Control, or the Trustee in its sole and absolute discretion, after a
Change in Control, determines that the Trust Fund exceeds 1125 percent of the
anticipated benefit obligations and administrative expenses that are to be paid
under the Plans, the Trustee, at the direction of the Committee prior to a
Change in Control, or in its sole and absolute discretion after a Change in
Control, shall distribute to the Company and the Subsidiaries such excess portion
of the Trust Fund.

ARTICLE 3

POWERS AND DUTIES
OF TRUSTEE

3.1.          INVESTMENT
DIRECTIONS. Except as provided in this Section and Section 3.2below, the
Committee shall provide the Trustee with all investment instructions in
writing. The Trustee shall neither affect nor change investments of the Trust
Fund, except as directed in writing by the Committee, and shall have no right,
duty or responsibility to recommend investments or investment changes;
provided, that the Trustee may (i) deposit cash on hand from time to time in
any bank savings account, certificate of deposit, or other instrument creating
a deposit liability for a bank, including the Trustee’s own banking department,
if the Trustee is a bank, without such prior direction, or (ii) invest in government
securities, bonds with specific ratings, equities, or mutual funds composed of
such investments, all within broad investment guidelines established by the
Committee from time to time.

3.2.          INVESTMENT UPON CHANGE
IN CONTROL. In the event of a Change in Control, the authority of the Committee
to direct investments of the Trust Fund shall cease and the Trustee shall have
complete authority to direct investments of the Trust Fund. The president of
the Company shall notify the Trustee in writing when a Change in Control has
occurred. The Trustee has no duty to inquire whether a Change in Control has
occurred and may rely on notification by the president of the Company of a
Change in Control; provided, however, that if any officer, former officer,
Director or former Director of the Company or any Subsidiary (other than the
president of the

 5
 

Company), or any Participant notifies the Trustee that there has been
or there may be a Change in Control, the Trustee shall have the duty to satisfy
itself as to whether a Change in Control has in fact occurred. The Company and
the Subsidiaries shall indemnify and hold harmless the Trustee for any damages
or costs (including attorneys’ fees) that may be incurred because of reliance
on the president’s notice or lack thereof.

3.3.          MANAGEMENT
OF INVESTMENTS. Subject to Section 3.1 above, the Trustee shall have, without
exclusion, all powers conferred on the Trustee by applicable law, unless
expressly provided otherwise herein, and all rights associated with assets of
the Trust shall be exercised by the Trustee or the person designated. by the
Trustee, and shall in no event be exercisable by or rest with Participants or
their Beneficiaries. The Trustee shall have full power and authority to invest
and reinvest the Trust Fund in any investment permitted by law, exercising the
judgment and care that persons of prudence, discretion and intelligence would exercise
under the circumstances then prevailing, considering the probable income and
safety of their capital, including, without limiting the generality of the
foregoing, the power:

(a)           To
invest and reinvest the Trust Fund, together with the income therefrom, in
common stock, preferred stock, convertible preferred stock, mutual funds,
bonds, debentures, convertible debentures and bonds, mortgages, notes, time
certificates of deposit, commercial paper and other evidences of indebtedness (including
those issued by the Trustee or any of its affiliates), other securities,
policies of life insurance, annuity contracts, options to buy or sell
securities or other assets, and other property of any kind (personal, real, or mixed,
and tangible or intangible); provided, however, that in no event may the
Trustee invest in securities (including stock or rights to acquire stock) or
obligations issued by the Company or the Subsidiaries, other than a de minimis
amount held in common investment vehicles in which the Trustee invests;

(b)           To
deposit or invest all or any part of the assets of the Trust Fund in savings
accounts or certificates of deposit or other deposits which bear a reasonable
interest rate in a bank, including the commercial department of the Trustee, if
such bank is supervised by the United States or any State;

(c)           To
hold, manage, and control all financial assets, forming part of the Trust Fund
and to sell, convey, transfer, exchange, partition, lease for any term, even
extending beyond the duration of this Trust, and otherwise dispose of the same
from time to time in such manner, for such consideration, and upon such terms
and conditions as the Trustee shall determine;

(d)           To
have, respecting securities, all the rights, powers and privileges of an owner,
including the power to give proxies, pay assessments and other sums deemed by
the Trustee to be necessary for the protection of the Trust Fund, to vote any
corporate stock either in person or by proxy, with or without power of substitution,
for any purpose; to participate in voting trusts, pooling agreements,
foreclosures, reorganizations, consolidations,

 6
 

mergers and liquidations, and in connection therewith to deposit securities
with and transfer title to any protective or other committee under such terms
as the Trustee may deem advisable; to exercise or sell stock subscriptions or
conversion rights; and, regardless of any limitation elsewhere in this
instrument relative to investment by the Trustee, to accept and retain as an
investment any securities or other property received through the exercise of
any of the foregoing powers;

(e)           To
hold in cash, without liability for interest, such portion of the Trust Fund
which, in its discretion, shall be reasonable under the circumstances, pending
investments, or payment of expenses, or the distribution of benefits;

(f)            To
take such actions as may be necessary or desirable to protect the Trust Fund
from loss due to the default on mortgages held in the Trust including the
appointment of agents or trustees in such other jurisdictions as may seem
desirable, to transfer property to such agents or trustees, to grant such
powers as are necessary or desirable to protect the Trust or its assets, to direct
such agents or trustees, or to delegate such power to direct, and to remove
such agents or trustees;

(g)           To
employ such agents including custodians and counsel as may be reasonably
necessary and to pay them reasonable compensation; to settle, compromise or
abandon all claims and demands in favor of or against the Trust assets;

(h)           To
cause title to property of the Trust to be issued, held or registered in the
individual name of the Trustee, or in the name of its nominee(es) or agents, or
in such form that title will pass by delivery;

(i)            To
exercise all of the further rights, powers, options and privileges granted,
provided for, or vested in trustees generally under the laws of the State whose
laws are applicable to this Master Trust Agreement, as provided in Section 10.5
below, so that the powers conferred upon the Trustee herein shall not be in
limitation of any authority conferred by law, but shall be in addition thereto;

(j)            To
borrow money from any source (including the Trustee) and to execute promissory
notes, mortgages or other obligations and to pledge or mortgage any Trust
assets as security; (k)     To lend
certificates representing stocks, bonds, or other securities to any brokerage
or other firm selected by the Trustee;

(l)            To
institute, compromise and defend actions and proceedings; to pay or contest any
claim; to settle a claim by or against the Trustee by compromise, arbitration,
or otherwise; to release, in whole or in part, any claim belonging to the Trust
to the extent that the claim is uncollectible;

 7
 

(m)          To
use securities depositories or custodians and to allow such securities as may
be held by a depository or custodian to be registered in the name of such
depository or its nominee or in the name of such custodian or its nominee;

(n)           To
invest the Trust Fund from time to time in one or more investment funds, which
funds shall be registered under the Investment Company Act of 1940; and

(o)           To
do all other acts necessary or desirable for the proper administration of the
Trust Fund, as if the Trustee were the absolute owner thereof.

However, nothing in this section shall be construed to mean the Trustee
assumes any responsibility for the performance of any investment made by the
Trustee in its capacity as trustee under the operations of this Master Trust
Agreement. Notwithstanding any powers granted to the Trustee pursuant to this
Master Trust Agreement or to applicable law, the Trustee shall not have any
power that could give this Trust the objective of carrying on a business and
dividing the gains therefrom, within the meaning of section 301.7701-2 of the
Procedure and Administrative Regulations promulgated pursuant to the Internal
Revenue Code of 1986, as amended.

3.4.          SECURITIES.
Voting or other rights in securities shall be exercised by the person or entity
responsible for directing such investments, and the Trustee shall have no duty
to exercise voting or proxy or other rights relating to any investment managed
or directed by the Committee. If any foreign securities are purchased pursuant
to the direction of the Committee, it shall be the responsibility of the person
or entity responsible for directing such investments to advise the Trustee in writing
of any laws or regulations, either foreign or domestic, that apply to such
foreign securities or to the receipt of dividends or interest on such
securities.

3.5.          SUBSTITUTION.
Notwithstanding any provision of any Plan or the Trust to the contrary, the
Company and/or any Subsidiary shall at all times have the power to reacquire
the Trust Fund by substituting readily marketable securities (other than stock,
a debt obligation or other security issued by the Company or any Subsidiary)
and/or cash of an equivalent value and such other property shall, following
such substitution, constitute the Trust Fund. Notwithstanding the foregoing,
after a Change in Control, any such substitution shall be subject to the
approval of the Trustee.

3.6.          DISTRIBUTIONS.

(a)           The
establishment of the Trust and the payment or delivery to the Trustee of money
or other property shall not vest in any Participant or Beneficiary any right,
title, or interest in and to any assets of the Trust. To the extent that any
Participant or Beneficiary acquires the right to receive payments under any of
the Plans, such right shall be no greater than the right of an unsecured
general creditor of the Company and the Subsidiaries and such Participant or
Beneficiary shall have only the unsecured promise of the Company and the
Subsidiaries that such payments shall be made.

 8
 

(b)           Concurrent
with the establishment of this Trust, the Company shall deliver to the Trustee
a schedule (the “Payment Schedule”) that indicates the amounts payable in
respect of each participant (and his or her Beneficiaries) on a Plan by Plan basis,
provides a formula or formulas or other instructions acceptable to the Trustee
for determining the amounts so payable, specifies the form in which such amount
is to be paid (as provided for or available under the applicable Plans), and the
time of commencement for payment of such amounts. The Payment Schedule shall be
updated annually and upon a Change in Control and from time to time as is
necessary thereafter. Except as otherwise provided herein, prior to a Change in
Control, the Trustee shall make payments to the Participants and their Beneficiaries
in accordance with such Payment Schedule. Despite the foregoing, after a Change
in Control, the Trustee shall make payments in accordance with the terms and
provisions of each of the Plans and related plan agreements. The Trustee, at
the direction of the Committee or, after a Change in Control, on its own
volition, may make any distribution required to be made by it hereunder by
delivering:

(i)            Its
check payable to the person to whom such distribution is to be made, to the
person, or, if prior to a Change in Control, to the Company for redelivery to such
person; provided that before a Change in Control, the Committee may direct the
Trustee to deliver one or more lump sum checks payable to the Company, and the Company
shall prepare and deliver individual checks for each Participant or
Beneficiary; or

(ii)           Its
check payable to an insurer for the benefit of such person, to the insurer, or,
if prior to a Change in Control, to the Company for redelivery to the insurer; or

(iii)          Contracts held on the life of the Participant
to whom or with respect to whom the distribution is being made, to the
Participant or Beneficiary, or, if prior to a Change in Control, to the Company
for redelivery to the person to whom such distribution is to be made; or

(iv)          If
a distribution is being made, in whole or in part, of other assets, assignments
or other appropriate documents or certificates necessary to effect a transfer
of title, to the Participant or Beneficiary, or, if prior to a Change in
Control, to the Company for redelivery to such person.

(c)           If
the principal of the Trust, and any earnings thereon, are not sufficient,
determined on a Plan by Plan basis, to make payments of benefits in accordance
with the terms of the Plans, the Company and the Subsidiaries shall make the
balance of each such payment as it falls due. The Trustee shall notify the
Company and the Subsidiaries when principal and earnings are not sufficient. To
the extent that the total Trust assets available to make benefit payments to
Participants or Beneficiaries who are currently entitled to payment are less
than the liabilities of the Plans, the Trustee shall make benefit payments

 9
 

proportionate to the ratio of assets available to pay benefits to the
total values of the liabilities.

(d)           The
Company and the Subsidiaries may make payment of benefits directly to
Participants or their Beneficiaries as they become due under the terms of the
Plans. The Company and the Subsidiaries shall notify the Trustee of their
decisions to make payment of benefits directly prior to the time amounts are payable
to Participants or their Beneficiaries.

(e)           Notwithstanding
anything contained in this Master Trust Agreement to the contrary, if at any
time the Trust is finally determined by the IRS not to be a “grantor trust”
with the result that the income of the Trust Fund is not treated as income of
the Company or the Subsidiaries pursuant to Sections 671 through 679 of the
Internal Revenue Code of 1986, as amended, or if a tax is finally determined by
the IRS to be payable by one or more Participants or Beneficiaries with respect
to any interest in the Plans or the Trust Fund prior to payment of such
interest to any such Participant or Beneficiary, the Trustee shall immediately
determine each Participant’s share of the Trust Fund in accordance with the
Plans, and the Trustee shall immediately distribute such share in a lump sum to
each Participant or Beneficiary entitled thereto, regardless of whether such
Participant’s employment has terminated (provided such Participant has a vested
interest in his or her accrued benefits under the Plans) and regardless of form
and time of payments specified in or pursuant to the Plans. Any remaining assets
(less any expenses or costs due under Sections 3.8 and 3.9 of this Master Trust
Agreement) shall then be paid by the Trustee to the Company and the
Subsidiaries in such amounts, and in the manner instructed by the Committee. If
the value of the Trust Fund is less than the benefit obligations under the
Plans, the foregoing described distributions will be limited to a Participant’s
share of the Trust Fund, determined by allocating assets to the Participant
based on the ratio of the Participant’s benefit obligations under the Plans to
the total benefit obligations under the Plans. Prior to a Change in Control,
the Trustee shall rely solely on the written directions of the Committee with
respect to the occurrence of the foregoing events and the resulting
distributions to be made, and the Trustee shall not be responsible for any
failure to act in the absence of such direction.

(f)            The
Trustee shall make provision for the reporting and withholding of any federal,
state or local taxes that may be required to be withheld with respect to the payment
of benefits pursuant to the terms of the Plans and at the discretion of the Retirement
Committee shall pay amounts withheld to the appropriate taxing authorities or
determine that such amounts have been reported, withheld and paid by the
Company and the Subsidiaries.

(g)           Prior
to a Change in Control, payments by the Trustee shall be delivered or mailed to
addresses supplied by the Retirement Committee and the Trustee’s obligation to
make such payments shall be satisfied upon such delivery or mailing. Prior to a
Change in Control, the Trustee shall have no obligation to determine the
identity of persons entitled to benefits or their mailing addresses. After a
Change in Control, the Retirement

 10
 

Committee shall provide written directions as to the identity of persons
entitled to benefits and their mailing addresses.

(h)           Prior
to a Change in Control, the entitlement of a Participant or his or her
Beneficiaries to benefits under the Plans shall be determined by the Company
and the Subsidiaries or such party as they shall designate under the Plans, and
any claim for such benefits shall be considered and reviewed under the
procedures set out in the Plans.

(i)            Notwithstanding
Section 3.6(h), upon and after the occurrence of a Change in Control, the Plan
shall be administered by (i) an independent third party (the “Administrator”)
selected by the Trustee and approved by the individual who, immediately prior
to such event, was the Company’s Chief Executive Officer or, if not so
identified, the Company’s highest ranking officer (the “Ex-CEO”), or (ii) if an
independent third party is not selected within ninety (90) days of a Change in
Control, the Committee. The Administrator shall have the discretionary power to
determine all questions arising in connection with the administration of the
Plan and the interpretation of the Plan and Trust including, but not limited to
benefit entitlement determinations; provided, however, upon and after the
occurrence of a Change in Control, the Administrator shall have no power to direct
the investment of Plan or Trust assets or select any investment manager or
custodial firm for the Plan or Trust. Upon and after the occurrence of a Change
in Control, the Company must: (1) pay all reasonable administrative expenses
and fees of the Administrator; (2) indemnify the Administrator against any costs,
expenses and liabilities including, without limitation, attorney’s fees and
expenses arising in connection with the performance of the Administrator
hereunder, except with respect to matters resulting from the gross negligence
or willful misconduct of the Administrator or its employees or agents; and (3)
supply full and timely information to the Administrator or all matters relating
to the Plan, the Trust, the Participants and their Beneficiaries, the Account
Balances of the Participants, the date of circumstances of the Retirement, Disability,
death or Termination of Employment of the Participants, and such other
pertinent information as the Administrator may reasonably require. Upon and
after a Change in Control, the Administrator may be terminated (and a
replacement appointed) by the Trustee only with the approval of the Ex-CEO. Upon
and after a Change in Control, the Administrator may not be terminated by the
Company.

3.7.          TRUSTEE
RESPONSIBILITY REGARDING PAYMENTS ON INSOLVENCY.

(a)           The
Trustee shall cease payment of benefits to Participants and their Beneficiaries
if the Company, or any Subsidiary, is Insolvent (the “Insolvent Entity”). The
Insolvent Entity shall be considered “Insolvent” for purposes of this Master
Trust Agreement if:

(i)            the
Insolvent Entity is unable to pay its debts as they become due, or

(ii)           the
Insolvent Entity is subject to a pending proceeding as a debtor under the
United States Bankruptcy Code.

 11
 

For purposes of this Section 3.7, if an entity is determined to be
Insolvent, each Subsidiary in which such entity has an equity interest shall
also be deemed to be an Insolvent Entity. However, the insolvency of a
Subsidiary will not cause a parent corporation to be deemed Insolvent.

(b)           At
all times during the continuance of this Trust, as provided in Section 1.3
above, the principal and income of the Trust shall be subject to claims of the
general creditors of the Company and its Subsidiaries under federal and state
law as set forth below:

(i)            The
Board and the president of the Company shall have the duty to inform the
Trustee in writing of the Company’s or any Subsidiary’s Insolvency. If a person
claiming to be a creditor of the Company or my Subsidiary alleges in writing to
the Trustee that the Company or any Subsidiary has become Insolvent, the Trustee
shall determine whether the Company or any Subsidiary is Insolvent and, pending
such determination, the Trustee shall discontinue payment of benefits to the Insolvent
Entity’s Participants or their Beneficiaries. Prior to a Change in Control, the
Trustee may conclusively rely on any determination it receives from the Board
or the president of the Company with respect to the Insolvency of the Company
or any Subsidiary.

(ii)           Unless
the Trustee bas actual knowledge of the Company’s or a Subsidiary’s Insolvency,
or has received notice from the Company, a Subsidiary, or a person claiming to be
a creditor alleging that the Company or a Subsidiary is Insolvent, the Trustee
shall have no duty to inquire whether the Company or any Subsidiary is
Insolvent. The Trustee may in all events rely on such evidence, concerning the
Company’s or any Subsidiary’s solvency as may be furnished to the Trustee and
that provides the Trustee with a reasonable basis for making. a determination
concerning the Company’s or any Subsidiary’s solvency. In this regard, the
Trustee may rely upon a letter from the Company’s or a Subsidiary’s auditors as
to the Company’s or any Subsidiary’s financial status.

(iii)          If at any time the Trustee has determined
that the Company or any Subsidiary is Insolvent, the Trustee shall discontinue
payments to the Insolvent Entity’s Participants or their Beneficiaries, and
shall hold the portion of the assets of the Trust allocable to the Insolvent
Entity for the benefit of the Insolvent Entity’s general creditors. Nothing in
this Master Trust Agreement shall in any way diminish any rights of Participants
or their Beneficiaries to pursue their rights as general creditors of the Insolvent
Entity with respect to benefits due under the Plans or otherwise.

(iv)          The
Trustee shall resume the payment of benefits to Participants or their
Beneficiaries in accordance with this Article 3 of this Master Trust Agreement

 12
 

only after the Trustee has been provided proof that
the alleged Insolvent Entity is not Insolvent (or is no longer Insolvent).

(c)           Provided
that there are sufficient assets, if the Trustee discontinues the payment of
benefits from the Trust pursuant to Section 3.7(b) hereof and subsequently
resumes such payments, the first payment following such discontinuance shall
include the aggregate amount of all payments due to Participants or their
Beneficiaries under the terms of the Plans for the period of such
discontinuance, less the aggregate amount of any payments made to Participants
or their Beneficiaries by the Company or any Subsidiary in lieu of the payments
provided for hereunder during any such period of discontinuance. Prior to a Change
in Control, the Committee shall instruct the Trustee as to such amounts, and
after a Change in Control, the Trustee shall determine such amounts in
accordance with the terms and provisions of the Plans.

3.8.          COSTS
OF ADMINISTRATION. The Trustee is authorized to incur reasonable obligations in
connection with the administration of the Trust, including attorneys’ fees,
Administrator fees, other administrative fees and appraisal fees. Such
obligations shall be paid by the Company and the Subsidiaries. The Trustee is
authorized to pay such amounts from the Trust Fund if the Company or the
Subsidiaries fail to pay them within 60 days of presentation of a statement of
the amounts due.

3.9.          TRUSTEE
COMPENSATION AND EXPENSES. The Trustee shall be entitled to reasonable
compensation for its services as from time to time agreed upon between the
Trustee and the Company. If the Trustee and the Company fail to agree upon a
compensation, or following a Change in Control, the Trustee shall be entitled
to compensation at a rate equal to the rate charged by the Trustee for similar
services rendered by it during the current fiscal year for other trusts similar
to this Trust. The Trustee shall be entitled to reimbursement for expenses
incurred by it in the performance of its duties as the Trustee, including
reasonable fees for legal counsel. The Trustee’s compensation and expenses
shall be paid by the Company and the Subsidiaries. The Trustee is authorized to
withdraw such amounts from the Trust Fund if the Company or the Subsidiaries
fail to pay them within 60 days of presentation of a statement of the amounts due.

3.10.        PROFESSIONAL ADVICE. The Company and the
Subsidiaries specifically acknowledge that the Trustee and/or the Administrator
may find it desirable or expedient to retain legal counsel (who may also be
legal counsel for the Company generally) or other professional advisors to advise
it in connection with the exercise of any duty under this Master Trust
Agreement, including, but not limited to, any matter relating to or following a
Change in Control or the Insolvency of the Company or any Subsidiary. The
Trustee and/or Administrator shall be fully protected in acting upon the advice
of such legal counsel or advisors.

3.11.        PAYMENT ON COURT ORDER. To the extent permitted
by law, the Trustee is authorized to make any payments directed by court order
in any action in which the Trustee has been named as a party. The Trustee is
not obligated to defend actions in which the Trustee is named, but shall

 13
 

notify the Company or Committee of any such action and may tender defense
of the action to the Company, Committee, Participant or Beneficiary whose
interest is affected. The Trustee may in its discretion defend any action in
which the Trustee is named, and any expenses incurred by the Trustee shall be
paid by the Company and the Subsidiaries. The Trustee is authorized to pay such
amounts from the Trust Fund if the Company or the Subsidiaries fail to pay them
within sixty (60) days of presentation of a statement of the amounts due.

3.12.        PROTECTIVE PROVISIONS. Notwithstanding any
other provision contained in this Master Trust Agreement to the contrary, the
Trustee shall have no obligation to (i) determine the existence of any
conversion, redemption, exchange, subscription or other right relating to any
securities purchased of which notice was given prior to the purchase of such securities
and shall have no obligation to exercise any such right unless the Trustee is
advised in writing by the Committee both of the existence of the right and the
desired exercise thereof within a reasonable time prior to the expiration of
the right to exercise, or (ii) advance any funds to the Trust. Furthermore, the
Trustee is not a party to the Plans.

3.13.        INDEMNIFICATIONS.

(a)           The
Company and the Subsidiaries shall indemnify and hold the Trustee harmless from
and against all loss or liability (including expenses and reasonable attorneys’
fees) to which it may be subject by reason of its execution of its duties under
this Trust, or by reason of any acts taken in good faith in accordance with any
directions, or acts omitted in good faith due to absence of directions, from
the Company, the Committee or a Participant, unless such loss or liability is
due to the Trustee’s gross negligence or willful misconduct. The indemnity described
herein shall be provided by the Company and the Subsidiaries.

(b)           In
the event that the Trustee is named as a defendant in a lawsuit or proceeding
involving one or more of the Plans or the Trust Fund, the Trustee shall be
entitled to receive on a current basis the indemnity payments provided for in
this Section, provided however that if the final judgment entered in the
lawsuit or proceeding holds that the Trustee is guilty of gross negligence or
willful misconduct with respect to the Trust Fund, the Trustee shall be required
to refund the indemnity payments that it has received.

(c)           The
Company and the Subsidiaries shall indemnify and hold the Administrator
harmless from and against all loss or liability (including expenses and
reasonable attorneys’ fees) to which it may be subject by reason of its
execution of its duties under this Trust, or by reason of any acts taken in
good faith in accordance with any directions, or acts omitted in good faith due
to absence of directions, from the Company, the Committee or a Participant,
unless such loss or liability is due to the Administrator’s gross negligence or
willful misconduct. The indemnity described herein shall be provided by the
Company and the Subsidiaries.

 14
 

(d)           In
the event that the Administrator is named as a defendant in a lawsuit or
proceeding involving one or more of the Plans or the Trust Fund, the
Administrator shall be entitled to receive on a current basis the indemnity
payments provided for in this Section, provided however that if the final
judgment entered in the lawsuit or proceeding holds that the Administrator is
guilty of gross negligence or willful misconduct with respect to its duties
under the Plans or the Trust, the Administrator shall be required to refund the
indemnity payments that it has received.

(e)           All
releases and indemnities provided in this Master Trust Agreement shall survive
the termination of this Master Trust Agreement.

ARTICLE 4

INSURANCE
CONTRACTS

4.1.          TYPES
OF CONTRACTS. To the extent that the Trustee is directed by the Committee prior
to a Change in Control to invest part or all of the Trust Fund in insurance
contracts, the type and amount thereof shall be specified by the Committee. The
Trustee shall be under no duty to make inquiry as to the propriety of the type
or amount so specified.

4.2.          OWNERSHIP.
Each insurance contract issued shall provide that the Trustee shall be the
owner thereof with, the power to exercise all rights, privileges, options and
elections granted by or permitted under such contract or under the rules of the
insurer. The exercise by the Trustee of any incidents of ownership under any
contract shall, prior to a Change in Control, be subject to the direction of
the Committee.

4.3.          RESTRICTIONS
ON TRUSTEE’S RIGHTS. The Trustee shall have no power to name a beneficiary of the
policy other than the Trust, to assign the policy (as distinct from conversion
of the policy to a different form) other than to a successor Trustee, or to
loan to any person the proceeds of any borrowing against such policy. Despite
the foregoing, the Trustee may (i) loan to the Company or any Subsidiary the
proceeds of any borrowing against an insurance policy held in the Trust Fund or
(ii) assign all, or any portion, of a policy to the Company or any Subsidiary if
under other provisions of this Master Trust Agreement the Company or any
Subsidiary is entitled to receive assets from the Trust.

ARTICLE 5

TRUSTEE’S ACCOUNTS

5.1.          RECORDS.
The Trustee shall maintain accurate records and detailed accounts of all
investments, receipts, disbursements and other transactions hereunder. Such
records shall be available at all reasonable times for inspection by the
Company and Subsidiaries or their authorized representative. The Trustee, at
the direction of the Committee, shall submit to the Committee

 15
 

and to any insurer such valuations, reports or other information as the
Committee may reasonably require and, in the absence of fraud or bad faith, the
valuation of the Trust Fund by the Trustee shall be conclusive.

5.2.          ANNUAL
ACCOUNTING; FINAL ACCOUNTING.

(a)           Within
60 days following the end of each Plan Year and within 60 days after the
removal or resignation of the Trustee or the termination of the Trust, the
Trustee shall file with the Committee a written account setting forth a
description of all properties purchased and sold, all receipts, disbursements
and other transactions effected by it during the Plan Year or, in the case of
removal, resignation or termination, since the close of the previous Plan Year,
and listing the properties held in the Trust Fund as of the last day of the
Plan Year or other period and indicating their values. Such values shall be
either cost or market as directed by the Committee in accordance with the terms
of the Plans.

(b)           The
Committee may approve such account either by written notice of approval
delivered to the Trustee or by its failure to express written objection to such
account delivered to the Trustee within 60 days after the date of which such
account was delivered to the Committee.

(c)           The
approval by the Committee of an accounting shall be binding as to all matters
embraced in such accounting on all parties to this Master Trust Agreement and
on all Participants and Beneficiaries, to the same extent as if such accounting
had been settled by a judgment or decree of a court of competent jurisdiction
in which the Trustee, the Committee, the Company, the Subsidiaries and all
persons having or claiming any interest in any Plan or the Trust Fund were made
parties.

(d)           Despite
the foregoing, nothing contained in this Master Trust Agreement shall deprive
the Trustee of the right to have an accounting judicially settled, if the
Trustee, in the Trustee’s sole discretion, desires such a settlement.

5.3.          VALUATION.
The assets of the Trust Fund shall be valued at their respective fair market values
on the date of valuation, as determined by the Trustee based upon such sources
of information as it may deem reliable, including, but not limited to, stock
market quotations, statistical valuation services, newspapers of general
circulation, financial publications, advice from investment counselors,
brokerage firms or insurance companies, or any combination of sources. Prior to
a Change in Control, the Committee shall instruct the Trustee as to the value
of assets for which market values are not readily obtainable by the Trustee. If
the Committee fails to provide such values, the Trustee may take whatever
action it deems reasonable, including employment of attorneys, appraisers, life
insurance companies or other professionals, the expense of which shall be an
expense of administration of the Trust Fund and payable by the Company and the
Subsidiaries. The Trustee may rely upon information from the Company and the
Subsidiaries, the Committee, appraisers or other sources and shall not incur
any liability for an inaccurate valuation based in good faith upon such
information.

 16
 

5.4.          DELEGATION
OF DUTIES. The Company or the Committee, or both, may at any time employ the
Trustee as their agent to perform any act, keep any records or accounts and
make any computations that are required of the Company, any Subsidiary or the
Committee by this Master Trust Agreement or the Plans. The Trustee may be
compensated for such employment and such employment shall not be deemed to be
contrary to the Trust. Nothing done by the Trustee as such agent shall change
or increase its responsibility or liability as Trustee hereunder.

ARTICLE 6

RESIGNATION OR
REMOVAL OF TRUSTEE

6.1.          RESIGNATION;
REMOVAL. The Trustee may resign at any time by written notice to the Company,
which shall be effective 60 days after receipt of such notice unless the
Company and the Trustee agree otherwise. Prior to a Change in Control, the
Trustee may be removed by the Company on 60 days notice or upon shorter notice
accepted by the Trustee. After a Change in Control, the Trustee may be removed
by a majority vote of the Participants, and if a Participant is dead, his or
her Beneficiaries (who collectively shall have one vote among them and shall
vote in place of such deceased Participant), on 60 days notice or upon shorter
notice accepted by the Trustee.

6.2.          SUCCESSOR
TRUSTEE. If the Trustee resigns or is removed, a successor shall be appointed
by the Company, in accordance with this Section, by the effective date of the
resignation or removal under Section 6.1 above. The successor shall be a bank,
trust company, or similar independent third party that is granted corporate
trustee powers under state or federal law. After the occurrence of a Change in
Control, a successor Trustee may not be appointed without the consent of a
majority of the Participants. If no such appointment has been made within six months,
the Trustee may apply to a court of competent jurisdiction for appointment of a
successor or for instructions. All expenses of the Trustee in connection with
the proceeding shall be allowed as administrative expenses of the Trust.

6.3.          SETTLEMENT
OF ACCOUNTS. Upon resignation or removal of the Trustee and appointment of a
successor Trustee, all assets shall subsequently be transferred to the
successor Trustee. The transfer shall be completed within 90 days after receipt
of notice of resignation, removal or transfer, unless the Company extends the
time limit. Upon the transfer of the assets, the successor Trustee shall
succeed to all of the powers and duties given to the Trustee in this Master
Trust Agreement. The resigning or removed Trustee shall render to the Committee
an account in the form and manner and at the time prescribed in Section 5.2.
The approval of such accounting and discharge of the Trustee shall be as provided
in such Section.

 17
 

ARTICLE 7

CONTROVERSIES,,
LEGAL ACTIONS AND COUNSEL

7.1.          CONTROVERSY.
If any controversy arises with respect to the Trust, the Trustee shall take
action as directed by the Committee or, in the absence of such direction or after
a Change in Control, as it deems advisable, whether by legal proceedings,
compromise or otherwise. The Trustee may retain the funds or property involved
without liability pending settlement of the controversy. The Trustee shall be
under no obligation to take any legal action of whatever nature unless there shall
be sufficient property in the Trust to indemnify the Trustee with respect to
any expenses or losses to which it may be subjected.

7.2.          JOINDER
OF PARTIES. In any action or other judicial proceedings affecting the Trust, it
shall be necessary to join as parties the Trustee, the Committee, the Company
and the Subsidiaries. No Participant or other person shall be entitled to any
notice or service of process. Any judgment entered in such a proceeding or
action shall be binding on all persons claiming under the Trust. Nothing in
this Master Trust Agreement shall be construed as to deprive a Participant or
Beneficiary of his or her right to seek adjudication of his or her rights by administrative
process or by a court of competent jurisdiction.

7.3.          EMPLOYMENT
OF COUNSEL. The Trustee may consult with legal counsel (who, prior to a Change
in Control, but not after a Change in Control, may be counsel for the Company
or any Subsidiary) and bail be fully protected with respect to any action taken
or omitted by it in good faith pursuant to the advice of counsel.

ARTICLE 8

INSURERS

8.1.          INSURER
NOT A PARTY. No insurer shall be deemed to be a party to the Trust and an
insurer’s obligations shall be measured and determined solely by the terms of
contracts and other agreements executed by it.

8.2.          AUTHORITY
OF TRUSTEE. An insurer shall accept the signature of the Trustee to any
documents or papers executed in connection with such contracts. The signature
of the Trustee shall be conclusive proof to the insurer that the person on
whose life an application is being made is eligible to have a contract issued
on his or her life and is eligible for a contract of the type and amount
requested.

8.3.          CONTRACT
OWNERSHIP. An insurer shall deal with the Trustee as the sole and absolute
owner of any insurance contracts and shall have no obligation to inquire
whether any action or failure to act on the part of the Trustee is in
accordance with or authorized by the terms of the Plans or this Master Trust
Agreement.

 18
 

8.4.          LIMITATION
OF LIABILITY. An insurer shall be fully discharged from any and all liability
for any action taken or any amount paid in accordance with the direction of the
Trustee and shall have no obligation to see to the proper application of the
amounts so paid. An insurer shall have no liability for the operation of the
Trust or the Plans, whether or not in accordance with their terms and
provisions.

8.5.          CHANGE
OF TRUSTEE. An insurer shall be fully discharged from any and all liability for
dealing with a party or parties indicated on its records to be the Trustee
until such time as it shall receive at its home office written notice of the
appointment and qualification of a successor Trustee.

ARTICLE 9

AMENDMENT AND
TERMINATION

9.1.          AMENDMENT.
Subject to the limitations set forth in this Section 9.1, this Master Trust
Agreement may be amended by a written instrument executed by the Trustee and
the Company. Notwithstanding the foregoing, no such amendment shall conflict
with the terms of the Plans or shall make the Trust revocable after it has
become irrevocable in accordance with Section 1.3 above. Any amendment, change
or modification shall be subject to the following rules:

(a)           GENERAL
RULE. Subject to Sections 9.1(b), (c) and (d) below, this Master Trust
Agreement may be amended:

(i)            By
the Company and the Trustee, provided, however, that if an amendment would in
any way adversely affect the rights accrued under the Plans in the Trust Fund
by any Participant or Beneficiary, each and every Participant and Beneficiary
whose rights in the Trust Fund would be adversely affected must consent to the
amendment before this Master Trust Agreement may be so amended; and

(ii)           By
the Company and the Trustee as may be necessary to comply with laws which would
otherwise render the Trust void, voidable or invalid in whole or in part.

(b)           LIMITATION.
Notwithstanding that an amendment may be permissible under Section 9.1(a)
above, this Master Trust Agreement shall not be amended by an amendment that
would:

(i)            Cause
any of the assets of the Trust to be used for or diverted to purposes other
than for the exclusive benefit of Participants and Beneficiaries as set forth in
the Plans, or payment of expenses of the Trust, except as is required to
satisfy the claims of the Company’s or a Subsidiary’s general creditors; or

(ii)           Be
inconsistent with the tens of any Plan, including the terms of any Plan
regarding termination, amendment or modification of the Plan.

(c)           WRITING
AND CONSENT. Any amendment to this Master Trust Agreement shall be set forth in
writing and signed by the Company and the Trustee and, if consent of any
Participant

 19
 

or Beneficiary is required under Section 9.1(a), the Participant or
Beneficiary whose consent is required. Any amendment may be current,
retroactive or prospective, in each case as provided therein.

(d)           THE
COMPANY AND TRUSTEE. In connection with the exercise of the rights under this
Section 9.1:

(i)            prior
to a Change in Control, the Trustee shall have no responsibility to determine
whether any proposed amendment complies with the terms and conditions set forth
in Sections 9.1(a) and (b) above and may conclusively rely on the directions of
the Committee with respect thereto, unless the Trustee has knowledge of a proposed
transaction or transactions that would result in a Change in Control; and

(ii)           after
a Change in Control, the power of the Company to amend this Master Trust
Agreement shall cease, and the power to amend that was previously held by the
Company shall, instead, be exercised by a majority of the Participants and, if
a Participant is dead, his or her Beneficiaries (who collectively shall have
one vote among them and shall vote in place of such deceased Participant), with
the consent of the Trustee, provided that such amendment otherwise complies
with the requirements of Sections 9.1(a), (b) and (c) above.

(e)           TAXATION.
This Master Trust Agreement shall not be amended, altered, changed or modified
in a manner that would cause the Participants and/or Beneficiaries under any
Plan to be taxed on the benefits under any Plan in a year other than the year
of actual receipt of benefits.

9.2.          FINAL
TERMINATION. The Trust shall not terminate until the date on which Participants
and their Beneficiaries are no longer entitled to benefits pursuant to the
terms of the Plans and all of the expenses of the Trust have been paid, and on
such date the Trust shall terminate. Upon termination of the Trust, any assets
remaining in the Trust shall be returned to the Company and the Subsidiaries.
Such remaining assets shall be paid by the Trustee to the Company and the
Subsidiaries in such amounts and in the manner instructed by the Company,
whereupon the Trustee shall be released and discharged from all obligations
hereunder. From and after the date of termination and until final distribution
of the Trust Fund, the Trustee shall continue to have all of the powers provided
herein as are necessary or expedient for the orderly liquidation and
distribution of the Trust Fund.

ARTICLE 10

MISCELLANEOUS

10.1.        DIRECTIONS FOLLOWING CHANGE IN CONTROL. Despite
any other provision of this Master Trust Agreement that may be construed to the
contrary, following a Change in Control, all powers of the Committee, the
Company and the Board to direct the Trustee under this Master Trust

 20
 

Agreement shall terminate, and the Trustee shall act on its own discretion
to carry out the terms of this Master Trust Agreement in accordance with the
Plans and this Master Trust Agreement.

10.2.        TAXES. The Company and the Subsidiaries shall
from time to time pay taxes of any and all kinds whatsoever that at any time
are lawfully levied or assessed upon or become payable in respect of the Trust
Fund, the income or any property forming a part thereof, or any security transaction
pertaining thereto. To the extent that any taxes lawfully levied or assessed
upon the Trust Fund are not paid by the Company and the Subsidiaries, the
Trustee shall have the power to pay such taxes out of the Trust Fund and shall
seek reimbursement from the Company and the Subsidiaries. Prior to making any
payment, the Trustee may require such releases or other documents from any
lawful taxing authority as it shall deem necessary. The Trustee shall contest
the validity of taxes in any manner deemed appropriate by the Company or its
counsel, but at the Company’s and the Subsidiaries’ expense, and only if it has
received an indemnity bond or other security satisfactory to it to pay any such
expenses. Prior to a Change in Control, the Trustee (i) shall not be liable for
any nonpayment of tax when it distributes an interest hereunder on directions
from the Committee, and (ii) shall have no obligation to prepare or file any
tax return on behalf of the Trust Fund, any such return being the sole
responsibility of the Committee. The Trustee shall cooperate with the Committee
in connection with the preparation and filing of any such return. After a
Change in Control, the Trustee shall have such duties and obligations.

10.3.        THIRD PERSONS. All persons dealing with the
Trustee are released from inquiring into the decisions or authority of the
Trustee and from seeing to the application of any moneys, securities or other
property paid or delivered to the Trustee.

10.4.        NONASSIGNABILITY; NONALIENATION. Benefits payable
to Participants and their Beneficiaries under this Master Trust Agreement may
not be anticipated, assigned (either at law or in equity), alienated, pledged, encumbered
or subjected to attachment, garnishment, levy, execution or other legal or
equitable process.

10.5.        APPLICABLE LAW. Except to the extent, if any,
preempted by ERISA, this Master Trust Agreement shall be governed by and
construed in accordance with the internal laws of the State of Florida. Any
provision of this Master Trust Agreement prohibited by law shall be ineffective
to the extent of any such prohibition, without invalidating the remaining provisions
hereof.

10.6.        NOTICES AND DIRECTIONS. Whenever a notice or
direction is given by the Committee to the Trustee, it shall be in the form required
by Section 2.1. Actions by the Company shall be by the Board or a duly
authorized officer, with such actions certified to the Trustee by an
appropriately certified copy of the action taken. The Trustee shall be
protected in acting upon any such notice, resolution, order, certificate or
other communication believed by it to be genuine and to have been signed by the
proper party or parties.

10.7.        SUCCESSORS AND ASSIGNS. This Master Trust
Agreement shall be binding upon and inure to the benefit of the Company, the
Subsidiaries and the Trustee and their respective successors and assigns.

 21
 

10.8.        GENDER AND NUMBER. Words used in the masculine
shall apply to the feminine where applicable, and when the context requires,
the plural shall be read as the singular and the singular as the plural.

10.9.        HEADINGS. Headings in this Master Trust
Agreement are inserted for convenience of reference only and any conflict
between such headings and the text shall be resolved in favor of the text.

10.10.      COUNTERPARTS. This Master Trust Agreement may be
executed in an original and any number of counterparts, each of which shall be
deemed to be an original of one and the same instrument.

10.11.      BENEFICIAL INTEREST. The Company and the
Subsidiaries are the true beneficiaries hereunder in that the payment of
benefits, directly or indirectly to or for a Participant or Beneficiary by the
Trustee, is in satisfaction of the Company’s and the Subsidiaries’ liability
therefore under the Plans. Nothing in this Master Trust Agreement shall
establish any beneficial interest in any person other than the Company and the Subsidiaries.

10.12.      THE TRUST AND PLANS. This Trust, the Plans and
each Participant’s Plan Agreement are part of and constitute a single,
integrated employee benefit plan and trust, shall be construed together as the
entire agreement between the Company, the Trustee, the Participants and the Beneficiaries
with regard to the subject matter thereof, and shall supersede all previous
negotiations, agreements and commitments with respect thereto.

10.13.      EFFECTIVE DATE. The effective date of this Master
Trust Agreement shall be January 1, 2003.

IN WITNESS WHEREOF
the Company and the Trustee have signed this Master Trust Agreement as of the
date first written above.

	
  TRUSTEE

  	
   

  	
  THE COMPANY:

  
	
   

  	
   

  	
   

  
	
  Legacy Trust Company, Inc.

  	
   

  	
  Haynes International, Inc.

  
	
  a Florida corporation,

  	
   

  	
  a Delaware corporation,

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mary B. Knauer

  	
   

  	
  By:

  	
  /s/ Francis J. Petro

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  EVP

  	
   

  	
  Title:

  	
  President and CEO

  
							

[Exhibit A -Executive Deferral Plans Covered by the
Agreement has been omitted from the Agreement as filed with the Securities and
Exchange Commission (the “SEC”). The omitted information is considered
immaterial from an investor’s perspective. The Registrant will furnish supplementally
a copy of any of the omitted exhibit to the SEC upon request from the SEC.]

 22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]