Document:

Exhibit
10.7

AMENDMENT NUMBER ONE

TO THE

MASTER TRUST
AGREEMENT

THIS AMENDMENT
NUMBER ONE to the Master Trust Agreement (“AMENDMENT”) is made and entered into
as of this 30th day of August, 2004 (the “EFFECTIVE DATE”), by and between
Haynes International, Inc. (the “COMPANY”) and Legacy Trust Company, Inc. (the “TRUSTEE”).

WITNESSETH:

WHEREAS, the
Company and the Trustee previously entered into that certain Master Trust
Agreement for Haynes International, Inc. Supplemental Executive Retirement
Plan(s), dated as of January 13, 2003, a copy of which is attached hereto and
incorporated herein as EXHIBIT A (the “TRUST AGREEMENT”); and

WHEREAS, pursuant
to SECTION 9.1 of the Trust Agreement, the Company and Trustee desire to amend
the Trust Agreement upon the terms and subject to the conditions set forth in
this Amendment;

NOW, THEREFORE, in
consideration of the mutual promises, covenants and agreements contained herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:

AMENDMENT

1.             The
following language is hereby inserted at the end of the definition of “Change
in Control” in SECTION 1.5(c) of the Trust Agreement after the phrase “the
Company is a member” in subsection (v):

“; provided, however, in no event shall the consummation of the plan of
reorganization of the Company and the transactions contemplated thereby as approved
by the Bankruptcy Court for the Southern District of Indiana with respect to
that certain

voluntary petition for bankruptcy 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 on March 29, 2004 constitute a ‘Change in Control’ under
this Master Trust Agreement.”

2.             This
Amendment may be executed in two (2) counterparts, each of which shall be
deemed an original, but both of which shall constitute one and the same instrument.
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 Trust Agreement to the extent provided herein only and all
other provisions thereof shall remain in full force and effect.

IN WITNESS
WHEREOF, the undersigned have executed this Amendment as of the Effective Date.

	
  “TRUSTEE”

  	
   

  	
  “COMPANY”

  
	
   

  	
   

  	
   

  
	
  LEGACY TRUST
  COMPANY, INC.

  	
   

  	
  HAYNES INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mary B.
  Knauer

  	
   

  	
  By: 

  	
  /s/ Francis J. Petro

  
	
  Printed:

  	
  Mary B. Knauer

  	
   

  	
   

  	
  Francis J. Petro, President

  	
   

  
	
  Title:

  	
  EVP

  	
   

  	
   

  
									

 

[Exhibit A -
Supplemental Executive Retirement Plan 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.]

 2Exhibit
10.8

Haynes International, Inc.

Supplemental Executive Retirement Plan

Plan Agreement

 

 

 

Effective
January 1, 2002

******************************************************************

THIS PLAN AGREEMENT (this “Agreement”) is entered into
as of December 13, 2002, between Haynes International, Inc. (the “Company”),
the Participant’s Employer and Francis J. Petro (the “Participant”).

Recital

A.                                   The
Participant is a key employee of the Employer, and the Employer desires to have
the continued services and counsel of the Participant.

B.                                     The
Employer has adopted, effective January 1, 2002, the Haynes International,
Inc.  Supplemental Executive Retirement
Plan (the “Plan”), as amended from time to time, and the Participant has been
selected to participate in the Plan.

C.                                     The
Participant desires to participate in the Plan.

Agreement

NOW THEREFORE, it is mutually agreed that:

1.                                       Definitions.  Unless otherwise provided in this Agreement,
the capitalized terms in this Agreement shall have the same meaning as under
the Plan’s master plan document (the “Plan Document”).

2.                                       Integrated
Agreement:  Parties Bound.  The Plan Document, a copy of which has been
made available to the Participant, is hereby incorporated into and made a part
of this Agreement as though set forth in full in this Agreement.  The parties to this Agreement agree to and
shall be bound by, and have the benefit of, each and every provision of the
Plan as set forth in the Plan Document. 
This Agreement and the Plan Document, collectively, shall be considered
one complete contract between the parties.

3.                                       Acknowledgment.  The Participant hereby acknowledges that he
or she has read and understands this Agreement and the Plan Document.

4.                                       SERP
Benefit.  The Participant’s SERP
Benefit shall be a monthly amount, payable for the life of the Participant and
commencing as of the date determined in accordance with Article 3 of the Plan
Document, equal to the product of:

(a)                                  Three
percent (3%); multiplied by

(b)                                 The
Participant’s Years of Service; multiplied by

(c)                                  The
Participant’s Average Compensation.

5.                                       Conditions
to Participation.  As a condition to
participation in the Plan, the Participant must complete, sign, date and return
to the Committee an original copy of this Agreement.

 1
 

6.                                       Successors
and Assigns.  This Agreement shall
inure to the benefit of, and be binding upon the Employer, its successors and
assigns, and the Participant.

7.                                       Governing
Law.  Subject to ERISA, this
Agreement shall be governed by and construed according to the internal laws of
the State of Indiana without regard “to its conflict of laws principles.

IN WITNESS WHEREOF, the Participant has signed and the Company has
accepted this Plan.

Agreement, on its behalf of the Employer, as of the date first written
above.

	
  

  	
   

  	
  PARTICIPANT

  
	
   

  	
   

  	
   

  
	
  12/13/02

  	
   

  	
  /s/ Francis J. Petro

  
	
  Date

  	
   

  	
  Signature of Participant

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Francis J. Petro

  
	
   

  	
   

  	
  Type or Print Name

  
	
   

  	
   

  	
   

  
	
  AGREED AND
  ACCEPTED BY THE COMPANY

  	
   

  	
   

  
	
   

  	
   

  	
  COMPENSATION COMMITTEE

  
	
   

  	
   

  	
   

  
	
  12/13/02

  	
   

  	
  /s/ R.C. Lappin

  
	
  Date

  	
   

  	
  Signature of Committee Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  R.C. Lappin

  
	
   

  	
   

  	
  Type or Print Name

  

 

******************************************************************

 

 2

	
  PETRO, FRANCIS J.

  	
   

  	
  ###-##-####

  
	
  Name (Last, First, Middle Initial)

  	
   

  	
  Social Security Number

  

 

In the event of my death, I hereby designate the Beneficiary(ies)
identified below to receive the balance of payments to be made under the Haynes
International, Inc. Supplemental Executive Retirement Plan (the “Plan”).  I reserve the full right to revoke or modify
this designation at any time by a subsequent written designation.

PRIMARY
BENEFICIARY.  If one of
my primary Beneficiaries dies before my death that person’s share will be
allocated pro rata to my other surviving primary Beneficiaries.

 

	
  Name

  	
   

  	
  Relationship

  	
   

  	
  Percent

  	
   

  	
  Date of Birth

  	
   

  	
  Social Security Number

  
	
  1) JEAN R PETRO

  	
   

  	
  WIFE

  	
   

  	
  100

  	
   

  	
  7/29/39

  	
   

  	
  ###-##-####

  
	
  2)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

If no Primary Beneficiary survives me, the following shall be the
Beneficiary:

CONTINGENT
BENEFICIARY.  If one of
my contingent Beneficiaries dies before my death that person’s share will be
allocated pro rata to my other surviving contingent Beneficiaries.

 

	
  Name

  	
   

  	
  Relationship

  	
   

  	
  Percent

  	
   

  	
  Date of Birth

  	
   

  	
  Social Security Number

  
	
  1) 

  	
  DAVID L PETRO

  	
   

  	
  SON 

  	
   

  	
  20 

  	
   

  	
  3/16/58 

  	
   

  	
  ###-##-#### 

  
	
   

  	
  DEBORAH J PARSONS

  	
   

  	
  DAUGHTER

  	
   

  	
  20

  	
   

  	
  4/10/60

  	
   

  	
  ###-##-####

  
	
  2) 

  	
  DANIEL J PETRO

  	
   

  	
  SON

  	
   

  	
  20

  	
   

  	
  6/30/61

  	
   

  	
  ###-##-####

  
	
  3) 

  	
  ELIZABETH J PETRO

  	
   

  	
  DAUGHTER 

  	
   

  	
  20 

  	
   

  	
  1/5/66 

  	
   

  	
  ###-##-#### 

  
	
   

  	
  ROBERT F PETRO

  	
   

  	
  SON

  	
   

  	
  20

  	
   

  	
  12/26/73

  	
   

  	
  ###-##-####

  

 

This Beneficiary Designation Form is effective until the Participant
files another such designation and that Beneficiary Designation Form is
acknowledged by the Corporate Secretary. 
Upon acknowledgment by the Corporate Secretary, all previous
Beneficiary Designation Forms are hereby revoked.

The Participant acknowledges that any change of Beneficiary will not be
effective until acknowledged and accepted in writing by the Corporate
Secretary.

	
  ACKNOWLEDGED AND AGREED:

  	
   

  	
  ACKNOWLEDGED:

  
	
   

  	
   

  	
   

  
	
  /s/ Francis J. Petro

  	
  12/3/02

  	
   

  	
  /s/ Jean C. Neel

  	
  3/14/03

  
	
  Signature of Participant

  	
  Date

  	
   

  	
  Signature of Corporate Secretary

  	
  Date

  

 

 Page 1 of 1

	
  Petro, Francis, J.

  	
  ###-##-####

  
	
  Name (Last, First, Middle Initial)

  	
  Social Security Number

  
	
   

  	
   

  

 

You may use this form to:

•       Change the form of Normal Benefit you may
receive under the Plan.

•       Change the form of Change in Control Benefit
you may receive under the Plan.

*In order for the following
elections to be effective, this form must be both submitted to and accepted by
the Committee prior to (i) your termination of employment, if the election is
made with respect to your Termination Benefit, or (b) the Change in Control, if
the election is made with respect to your Change in Control Benefit.

	
  Form of Normal Benefit

  Payments

  	
  Please select one option below.

  
	
  I elect to receive my Normal Benefit, payable upon my
  Termination of Employment, in the following form:

  
	
   

  
	
  o  Life
  Annuity

  	
  o  10
  Year Term Certain and Life Annuity

  
	
   

  	
   

  
	
  x  Lump
  Sum

  	
   

  
	
   

  	
   

  
			

 

	
  Form of Change in

  Control Benefit Payments

  	
  Please select one option below.

  
	
  I elect to receive my Change in Control Benefit,
  payable upon a Change in Control, in the following form:

  
	
   

  
	
  o  Life
  Annuity

  	
  o  10
  Year Term Certain and Life Annuity

  
	
   

  	
   

  
	
  x  Lump
  Sum

  	
   

  
	
   

  	
   

  
			

 

	
  ACKNOWLEDGED AND AGREED:

  	
   

  	
   

  	
  ACKNOWLEDGED:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Francis J.
  Petro

  	
  12/13/02

  	
   

  	
  /s/ Calvin S. McKay

  	
  1/01/03

  
	
  Signature of
  Participant

  	
  Date

  	
   

  	
  Signature of Committee Member

  	
  Date

  

 

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