Document:

<Page>

<Table>
<S><C>
               COMMON STOCK                                     HAYNES                            COMMON STOCK
                                                           -----------------
   NUMBER                                                    INTERNATIONAL                                                  SHARES
                                                           -----------------
HII

         INCORPORATED UNDER THE LAWS                                                            CUSIP 420877 20 1
          OF THE STATE OF DELAWARE                                                    SEE REVERSE FOR CERTAIN DEFINITIONS

                                                       HAYNES INTERNATIONAL, INC.

         THIS CERTIFIES THAT

         SPECIMEN

          is the owner of
                  FULLY PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK, PAR VALUE $0.001 PER SHARE OF

                  HAYNES INTERNATIONAL, INC. (hereinafter, the "Corporation") transferable on the books of the
                  Corporation in person or by duly authorized attorney upon surrender of this Certificate
                  properly endorsed. This Certificate and the shares represented hereby are issued and shall
                  be held subject to all of the provisions of the Corporation's Certificate of Incorporation
                  and By-laws. This Certificate is not valid until countersigned and registered by the
                  Transfer Agent and Registrar.
                           Witness the facsimile seal of the Corporation and the facsimile signatures of its
                  duly authorized officers.
                  Dated

          Countersigned and Registered:
                  Wells Fargo Bank, N.A.
              Transfer Agent and Registrar

          By

                  Authorized Signature

                  /s/ Jean C. Neel
                  Jean C. Neel                           [SEAL]         /s/ Francis J. Petro
                  Vice President Corporate Affairs,                     Francis J. Petro
                  and Corporate Secretary                               President and Chief Executive Officer
</Table>

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                     HAYNES INTERNATIONAL, INC.

    THE CORPORATION WILL FURNISH, WITHOUT CHARGE TO EACH SHAREHOLDER WHO SO
REQUESTS, A FULL STATEMENT OF THE DESIGNATION, RELATIVE RIGHTS, PREFERENCES
AND LIMITATIONS OF EACH CLASS AUTHORIZED TO BE ISSUED, AND A FULL STATEMENT
OF THE DESIGNATION, RELATIVE RIGHTS, PREFERENCES AND LIMITATIONS OF EACH
SERIES OF ANY CLASS OF PREFERRED SHARES AUTHORIZED TO BE ISSUED SO FAR AS THE
SAME MAY HAVE BEEN FIXED AND THE AUTHORITY OF THE BOARD TO DESIGNATE AND FIX
THE RELATIVE RIGHTS, PREFERENCES AND LIMITATIONS OF OTHER SERIES. ANY SUCH
REQUEST SHOULD BE ADDRESSED TO THE SECRETARY OF THE COMPANY, OR TO THE
TRANSFER AGENT AND REGISTRAR NAMED ON THE FACE OF THIS CERTIFICATE.

     The following abbreviations, when used in the inscription on the face
of this certificate, shall be construed as though they were written out in
full according to applicable laws or regulations:

<Table>
<Caption>
<S>          <C>  <C>                                  <C>
TEN COM       -   as tenants in common                 UNIF GIFT MIN ACT _____ Custodian _______
TEN ENT       -   as tenants by the entireties                           (Cust)          (Minor)
JT TEN        -   as joint tenants with right                         under Uniform Gifts to Minors
                  of survivorship and not as                          Act ________________________
                  tenants in common                                               (State)
</Table>

  Additional abbreviations may also be used though not in the above list.

FOR VALUE RECEIVED, ______________________ HEREBY SELL, ASSIGN AND TRANSFER UNTO

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE
__________________________________

_______________________________________________________________________________

_______________________________________________________________________________
PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING ZIP CODE OF ASSIGNEE

_______________________________________________________________________________

_______________________________________________________________________ SHARES

OF THE STOCK REPRESENTED BY THE WITHIN CERTIFICATE, AND DO HEREBY IRREVOCABLY

CONSTITUTE AND APPOINT ______________________________________________________

_____________________________________________________________________________

ATTORNEY TO TRANSFER THE SAID STOCK ON THE BOOKS OF THE WITHIN-NAMED
CORPORATION WITH FULL POWER OF SUBSTITUTION IN THE PREMISES.

DATED ________________________

                                       _______________________________________
                                       NOTICE: THE SIGNATURE TO THIS ASSIGNMENT
                                       MUST CORRESPOND WITH THE NAME AS WRITTEN
                                       UPON THE FACE OF THE CERTIFICATE
                                       IN EVERY PARTICULAR, WITHOUT ALTERATION
                                       OR ENLARGEMENT OR ANY CHANGE WHATEVER.

SIGNATURE(S) GUARANTEED: __________________________________________
                         THE SIGNATURE(S) MUST BE GUARANTEED BY AN
                         ELIGIBLE GUARANTOR INSTITUTION (BANKS,
                         STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS
                         AND CREDIT UNIONS WITH MEMBERSHIP IN AN
                         APPROVED SIGNATURE GUARANTEE MEDALLION
                         PROGRAM), PURSUANT TO S.E.C. RULE 174d-15.<Page>

                                                                    Exhibit 10.1

                                     FORM OF

                         TERMINATION BENEFITS AGREEMENT

     THIS TERMINATION BENEFITS AGREEMENT ("AGREEMENT") is executed as of the
date set forth below to be effective as of the Effective Date (defined below) by
and between Haynes International, Inc., a Delaware corporation (the "COMPANY"),
and ____________, an individual residing in the State of Indiana (the
"EMPLOYEE").

                                   WITNESSETH:

     WHEREAS, the Company and the Employee previously entered into that certain
Severance Agreement (the "SEVERANCE AGREEMENT") dated as of June 29, 2000
whereby the rights and obligations of the Employee in the event of a termination
associated with a change in control of the Company were set forth; and

     WHEREAS, on March 29, 2004, the Company filed a 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 (the
"BANKRUPTCY"); and

     WHEREAS, the Company and the Employee desire to amend and restate such
Severance Agreement to set forth the rights and obligations of the parties with
respect to a termination of the Employee's employment with the Company following
the Company's emergence from Bankruptcy.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein
and for other good and valuable consideration, the receipt and sufficiency of
which is hereby recognized, the Company and the Employee agree as follows:

                                    AGREEMENT

     1.   PRIOR AGREEMENT. Effective as of effective date of the Company's plan
of reorganization (the "PLAN OF REORGANIZATION") as filed with the U.S.
Bankruptcy Court for the Southern District of Indiana (the "EFFECTIVE DATE"),
the Employee's benefits upon a termination of employment shall be governed by
this Agreement, which restates and supersedes the Severance Agreement.

     2.   TERM OF AGREEMENT. This Agreement shall commence as of the Effective
Date and shall continue in effect until September 30, 2007; provided, however,
that commencing on October 1, 2007 (the "RENEWAL DATE") and on each two-year
anniversary thereafter, the term of this Agreement shall automatically be
extended for two (2) years (until the two-year anniversary of the Renewal Date
next following) unless either the Company or the Employee shall have given
written notice to the other at least sixty (60) days prior thereto that the term
of this Agreement shall not be so extended (the "TERM").

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     3.   TERMINATION BENEFITS.

          (a)  If, during the Term of this Agreement, the Employee's employment
     with the Company shall be terminated, the Employee shall be entitled to
     receive the following compensation and benefits (in addition to any
     compensation and benefits provided for under any of the Company's employee
     benefit plans, policies and practices or as required by law):

               (1)  TERMINATION WITHOUT CAUSE, FOR GOOD REASON, OR DUE TO
          DISABILITY OR DEATH. If the Employee's employment with the Company
          shall be terminated by the Company without Cause, by the Employee for
          Good Reason, or by reason of the Employee's Disability or death:

                    (i)   the Employee or the Employee's heirs, estate, personal
               representative or legal guardian, as appropriate, shall be
               entitled to receive a lump sum cash payment equal to the sum of:

                          (A)  the Employee's accrued but unpaid Base Salary
                               through the Date of Termination;

                          (B)  any accrued but unpaid compensation, including
                               but not limited to any unpaid bonus compensation
                               and reimbursement, in accordance with the then
                               prevailing reimbursement practices of the
                               Company, for all reasonable and customary
                               business expenses incurred by the Employee in
                               connection with his employment by the Company as
                               of the Date of Termination; and

                          (C)  a bonus for the fiscal year in which the Date of
                               Termination occurs in an amount equal to the
                               Employee's target bonus for such fiscal year
                               under the bonus or incentive compensation plan
                               maintained by the Company, calculated as if the
                               Employee earned one hundred percent (100%) of
                               such target bonus (the "SEVERANCE BONUS"),
                               multiplied by a fraction, the numerator of which
                               is the number of days the Employee worked in the
                               fiscal year in which the Date of Termination
                               occurs and the denominator of which is three
                               hundred sixty five (365); and

                    (ii)  (A) upon a termination of employment by the Company
               without Cause or by the Employee for Good Reason, any unvested
               stock options held by the Employee will terminate immediately and
               all vested stock options held by the Employee will remain
               exercisable for six (6) months following the Date of Termination,
               but in no event later than the

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               expiration date of the stock options as specified in the
               applicable grant letter, and (B) upon a termination of employment
               by reason of the Employee's Disability or death, any unvested
               stock options held by the Employee will vest immediately and all
               options held by the Employee will remain exercisable for six (6)
               months from the Date of Termination, but in no event later than
               the expiration date of such stock options as specified in the
               applicable grant letter.

               (2)  TERMINATION FOR CAUSE. WITHOUT GOOD REASON, OR DUE TO
          RETIREMENT. If the Employee's employment with the Company shall be
          terminated by the Company for Cause, by the Employee without Good
          Reason, or by reason of the Employee's Retirement:

                    (i)   the Employee shall be entitled to receive a lump sum
               cash payment equal to the sum of:

                          (A)  the Employee's accrued but unpaid Base Salary
                               through the Date of Termination; and

                          (B)  any accrued but unpaid compensation, including
                               but not limited to any unpaid bonus compensation
                               and reimbursement, in accordance with the then
                               prevailing reimbursement practices of the
                               Company, for all reasonable and customary
                               business expenses incurred by the Employee in
                               connection with his employment by the Company as
                               of the Date of Termination; and

                    (ii)  (A)  upon a termination of employment by the Company
               for Cause or by the Employee without Good Reason, all vested and
               unvested stock options held by the Employee shall terminate
               immediately, and (B) upon the Employee's Retirement, all unvested
               stock options held by the Employee shall terminate immediately
               and any vested stock options held by the Employee shall remain
               exercisable for six (6) months following the Date of Termination
               but in no event later than the expiration date of such stock
               options as specified in the applicable grant letter.

               (3)  TERMINATION WITHOUT CAUSE OR FOR GOOD REASON FOLLOWING A
          CHANGE IN CONTROL. If the Employee's employment with the Company shall
          be terminated by the Company without Cause or by the Employee for Good
          Reason within twelve (12) months following a Change in Control and
          during the Term of this Agreement (including any extensions or deemed
          extensions thereof as provided in SECTION 2 above):

                    (i)   the Employee shall be entitled to receive a lump sum
               cash payment equal to the sum of:

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                          (A)  the Employee's accrued but unpaid Base Salary
                               through the Date of Termination;

                          (B)  the Employee's Base Salary that would be payable
                               for the period from the Date of Termination
                               through the first (1st) anniversary thereof (the
                               "SEVERANCE PERIOD");

                          (C)  any accrued but unpaid compensation, including
                               but not limited to any unpaid bonus compensation
                               and reimbursement, in accordance with the then
                               prevailing reimbursement practices of the
                               Company, for all reasonable and customary
                               business expenses incurred by the Employee in
                               connection with his employment by the Company as
                               of the Date of Termination; and

                          (D)  the Severance Bonus;

                    (ii)  any unvested stock options held by the Employee will
               vest immediately and all stock options held by the Employee will
               remain exercisable for one (1) year from the Date of Termination,
               but in no event later than the expiration date of the stock
               options as specified in the applicable grant letter; and

                    (iii) during the Severance Period, the Company shall provide
               to the Employee and Employee's dependents any medical,
               hospitalization and life insurance benefits that the Employee
               received from the Company immediately prior to the Date of
               Termination, PROVIDED, HOWEVER, that any such benefits coverage
               shall cease to the extent that the Employee obtains comparable
               medical, hospitalization or life insurance benefits (as the case
               may be) from any other employer during such Severance Period.

          (b)  The Employee shall not be required to mitigate the amount of any
     payment provided for in this SECTION 3 by seeking other employment or
     otherwise, nor, except as provided in SECTION 3(a)(3)(iii) above, shall the
     amount of any payment or benefit provided for in SECTION 3 be reduced by
     any compensation earned by the Employee or benefit made available to the
     Employee as the result of employment by another employer after the Date of
     Termination or otherwise.

          (c)  For purposes of this Agreement, the following definitions shall
     apply:

               (1)  "DISABILITY" means the Employee is totally and permanently
          disabled as defined in the Haynes International, Inc. Pension Plan.

               (2)  "RETIREMENT" means the voluntary retirement of the Employee
          after having reached age fifty-five (55) and having completed at least
          five (5) years of service with the Company, but in no event prior to
          September 30, 2007.

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               (3)  A termination for "CAUSE" means a termination by reason of
          the good faith determination of the Company's Board of Directors (the
          "BOARD") that the Employee (i) continually failed to substantially
          perform his duties with the Company (other than a failure resulting
          from the Employee's medically documented incapacity due to physical or
          mental illness), including, without limitation, repeated refusal to
          follow the reasonable directions of the Company's Chief Executive
          Officer, knowing violation of the law in the course of performance of
          the Employee's duties with the Company, repeated absences from work
          without a reasonable excuse, or intoxication with alcohol or illegal
          drugs while on the Company's premises during regular business hours,
          (ii) engaged in conduct which constituted a material breach of SECTION
          7 or SECTION 8 of this Agreement, (iii) was indicted (or equivalent
          under applicable law), convicted of, or entered a plea of nolo
          contendere to the commission of a felony or crime involving dishonesty
          or moral turpitude, or (iv) engaged in conduct which is demonstrably
          and materially injurious to the financial condition, business
          reputation, or otherwise of the Company or its subsidiaries or
          affiliates, or (v)perpetuated a fraud or embezzlement against the
          Company or its subsidiaries or affiliates, and in each case the
          particular act or omission was not cured, if curable, in all material
          respects by the Employee within thirty (30) days after receipt of
          written notice from the Board which shall set forth in reasonable
          detail the nature of the facts and circumstances which constitute
          Cause. Notwithstanding the foregoing, the Employee shall not be deemed
          to have been terminated for Cause unless there shall have been
          delivered to the Employee a copy of a resolution duly adopted by the
          Board. If the Company has reasonable belief that the Employee has
          committed any of the acts described above, it may suspend the Employee
          (with or without pay) while it investigates whether it has or could
          have Cause to terminate the Employee. The Company may terminate the
          Employee for Cause prior to the completion of its investigation;
          provided, that, if it is ultimately determined that the Employee has
          not committed an act which would constitute Cause, the Employee shall
          be treated as if he were terminated without Cause.

               (4)  A "NOTICE OF TERMINATION" means a notice which shall
          indicate the specific termination provision in this Agreement which is
          applicable and shall set forth in reasonable detail the facts and
          circumstances claimed to provide a basis for termination of the
          Employee's employment under the provision so indicated. For purposes
          of this Agreement, no such purported termination shall be effective
          without such Notice of Termination. Any purported termination by the
          Company or by the Employee shall be communicated by written notice of
          termination to the other party hereto in accordance with SECTION 6
          hereof.

               (5)  "DATE OF TERMINATION" means (i) if the Employee's employment
          is terminated for Disability, thirty (30) days after Notice of
          Termination is given (provided that the Employee shall not have
          returned to the performance of his duties on a full-time basis during
          such thirty (30) day period), and (ii) if the Employee's employment is
          terminated for any other reason, the date specified in the Notice of
          Termination (which, in the case of a termination without Cause shall

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          not be less than thirty (30) days from the date such Notice of
          Termination is given); provided that if within thirty (30) days after
          any such Notice of Termination is given the party receiving such
          Notice of Termination notifies the other party that a dispute exists
          concerning the termination, the Date of Termination shall be the date
          on which the dispute is finally determined, either by mutual written
          agreement of the parties, or by the final judgment, order or decree of
          a court of competent jurisdiction (the time for appeal therefrom
          having expired and no appeal having been taken).

               (6)  "BASE SALARY" means the annual base salary of the Employee
          from the Company, but determined without regard to any salary
          reduction agreement of the Employee under Sections 401(k) and 125 of
          the Internal Revenue Code of 1986, as amended (the "CODE"), (or
          corresponding provisions of subsequent federal income tax laws) or any
          salary deferral agreement of the Employee under any non-qualified
          deferred compensation program that may be available to the Employee
          from time to time, and excludes (i) incentive or additional cash
          compensation; (ii) any amounts included in income because of Sections
          79 or 89 of the Code; and (iii) any amounts paid to the Employee for
          reimbursement for expenses or discharging tax liabilities.

               (7)  "GOOD REASON" shall mean the occurrence, during the Term of
          this Agreement, of any of the following actions or failures to act,
          but in each case only if it is not consented to by the Employee in
          writing:

                    (i)   a material adverse change in the Employee's duties,
               reporting responsibilities, titles or elected or appointed
               offices as in effect immediately prior to the effective date of
               such change; or

                    (ii)  a material reduction by the Company in the Employee's
               Base Salary or annual bonus opportunity in effect immediately
               prior to the effective date of such reduction, not including any
               reduction resulting from changes in the market value of
               securities or other instruments paid or payable to the Employee.

               For purposes of this definition, none of the actions described in
          clauses (i)and (ii) above shall constitute "Good Reason" with respect
          to the Employee if it was an isolated and inadvertent action not taken
          in bad faith by the Company and if it is remedied by the Company
          within thirty (30) days after receipt of written notice thereof given
          by the Employee (or, if the matter is not capable of remedy within
          thirty (30) days, then within a reasonable period of time following
          such thirty (30) day period, provided that the Company has commenced
          such remedy within said thirty (30) day period); provided that "GOOD
          REASON" shall cease to exist for any action described in clauses (i)
          and (ii) above on the sixtieth (60th) day following the later of the
          occurrence of such action or the Employee's knowledge thereof, unless
          the Employee has given the Company written notice thereof prior to
          such date.

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               (8)  "CHANGE IN CONTROL" shall mean the first to occur of the
          following:

                    (i)   any Person other than an Existing Substantial
               Shareholder becomes the Beneficial Owner, directly or indirectly,
               of securities of the Company representing a majority of the
               combined voting power of the Company's then outstanding
               securities (assuming conversion of all outstanding non-voting
               securities into voting securities and the exercise of all
               outstanding options or other convertible securities);

                    (ii)  the following individuals cease for any reason to
               constitute a majority of the number of directors then serving:
               individuals who, on the Effective Date, constitute the Board and
               any new director (other than a director whose initial assumption
               of office is in connection with an actual or threatened election
               contest, including but not limited to a consent solicitation,
               relating to the election of directors of the Company) whose
               appointment or election by the Board or nomination for election
               by the Company's stockholders was approved or recommended by a
               vote of at least two-thirds (2/3) of the directors then still in
               office who either were directors on the Effective Date or whose
               appointment, election or nomination for election was previously
               so approved or recommended;

                    (iii) there is consummated a merger or consolidation of the
               Company or any direct or indirect subsidiary of the Company with
               any other corporation (other than with an Existing Substantial
               Shareholder or any of its affiliates), other than (x) a merger or
               consolidation which would result in the voting securities of the
               Company outstanding immediately prior to such merger or
               consolidation continuing to represent, either by remaining
               outstanding or by being converted into voting securities of the
               surviving entity or any parent thereof, a majority of the
               combined voting power of the securities of the Company or such
               surviving entity or any parent thereof outstanding immediately
               after such merger or consolidation, or (y) a merger or
               consolidation effected to implement a recapitalization of the
               Company (or similar transaction) in which no Person, is or
               becomes the Beneficial Owner, directly or indirectly, of
               securities of the Company representing a majority of the combined
               voting power of the Company's then outstanding securities; or

                    (iv)  the stockholders of the Company approve a plan of
               complete liquidation or dissolution of the Company or there is
               consummated an agreement for the sale or disposition by the
               Company of all or substantially all of the Company's assets,
               other than a sale or disposition by the Company of all or
               substantially all of the Company's assets to an entity controlled
               by an Existing Substantial Shareholder or any of its affiliates
               or to an entity a majority of the combined voting power of the
               voting securities of which is owned by substantially all of the
               stockholders of the Company immediately prior to such sale in

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               substantially the same proportions as their ownership of the
               Company immediately prior to such sale.

                    For the avoidance of doubt, the consummation of a Plan of
               Reorganization and the transactions contemplated thereby shall
               not be deemed a Change in Control.

               (9)  "EXISTING SUBSTANTIAL SHAREHOLDER" means any Person that
          alone or together with its affiliates shall be the Beneficial Owner of
          or entitled to receive more than fifteen percent (15%) of New Common
          Stock (as defined in the Plan of Reorganization) as of the Effective
          Date.

               (10) "BENEFICIAL OWNER" shall have the meaning set forth in Rule
          13d-3 under the Securities Exchange Act of 1934, as amended.

               (11) "PERSON" shall, except for purposes of SECTION 8 of this
          Agreement, have the meaning given in Section 3(a)(9) of the Securities
          Exchange Act of 1934, as modified and used in Sections 13(d) and 14(d)
          thereof, except that such term shall not include (i) the Company or
          any subsidiary of the Company, (ii) a trustee or other fiduciary
          holding securities under an employee benefit plan of the Company or
          any of its affiliates, (iii) an underwriter temporarily holding
          securities pursuant to an offering of such securities or (iv) a
          corporation owned, directly or indirectly, by substantially all of the
          stockholders of the Company in substantially the same proportions as
          their ownership of stock of the Company.

     4.   SUCCESSORS; BINDING AGREEMENT.

          (a) This Agreement shall be binding on the Company and any successor
     to all or substantially all of its business or assets. Without limiting the
     effect of the prior sentence, the Company will require any successor or
     assign (whether direct or indirect, by purchase, merger, consolidation or
     otherwise) to all or substantially all of the business and/or assets of the
     Company to expressly assume and agree to perform this Agreement in the same
     manner and to the same extent that the Company would be required to perform
     it if no such succession or assignment had taken place. As used in this
     Agreement, the "COMPANY" shall mean the Company as hereinbefore defined and
     any successor or assign to its business and/or assets as aforesaid which
     assumes and agrees to -perform this Agreement or which is otherwise
     obligated under this Agreement by the first sentence of this SECTION 4, by
     operation of law or otherwise.

          (b) This Agreement shall inure to the benefit of and be enforceable by
     the Employee's personal and legal representatives, executors,
     administrators, successors, heirs, distributees, devisees and legatees. If
     the Employee should die while any amounts would still be payable to him
     hereunder if he had continued to live, all such amounts, unless otherwise
     provided herein, shall be paid in accordance with the terms of this
     Agreement to the Employee's devisee, legatee or other designee or if there
     is no such devisee, legatee or designee, to the Employee's estate.

     5.   TIMING OF PAYMENT AND RELEASE.

                                        8
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          (a) As a condition of receiving from the Company the payments and
     benefits provided for hereunder, which the Employee otherwise would not be
     entitled to receive, the Employee understands and agrees that, on the Date
     of Termination, he will be required to execute a release of all claims
     against the Company in substantially the form attached hereto as EXHIBIT 1
     (the "RELEASE") as may be modified by the Company in good faith to reflect
     changes in law or its employment practices. The Employee acknowledges that
     he has been advised in writing to consult with an attorney prior to
     executing the Release. The Employee agrees that he will consult with his
     attorney prior to executing the Release. The Employee and the Company agree
     that the Employee has a period of seven (7) days following the execution of
     the Release within which to revoke the Release. The parties also
     acknowledge and agree that the Release shall not be effective or
     enforceable until the seven (7) day revocation period expires. The date on
     which this seven (7) day period expires shall be the effective date of the
     Release (the "RELEASE EFFECTIVE DATE").

          (b) The Company shall make all payments required under this Agreement
     within five (5) business days following the Release Effective Date.

          (c) The Employee understands that as used in this SECTION 5, the
     "COMPANY" includes its past, present and future officers, directors,
     trustees, shareholders, employees, agents, subsidiaries, affiliates,
     distributors, successors, and assigns, any and all employee benefit plans
     (and any fiduciary of such plans) sponsored by the Company, and any other
     persons related to the Company.

          (d) Notwithstanding anything in this Agreement to the contrary, this
     Agreement shall not affect the Company's right or ability to terminate the
     employment of the Employee, subject to any other written contract between
     the Company and the Employee to the contrary.

          (e) The Employee agrees that execution and delivery to the Company of
     any release or disclaimer agreement requested by the Company which is
     consistent with the provisions of this SECTION 5 and the passage of all
     necessary waiting periods in connection therewith shall be a condition to
     the receipt of any payment or benefits to be provided by the Company
     following the termination of the Employee's employment with the Company.

          6.   NOTICES. For the purposes of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing and shall
be deemed to have been duly given when personally delivered or sent by certified
mail, return receipt requested, postage prepaid, or by expedited (overnight)
courier with established national reputation, shipping prepaid or billed to
sender, in either case addressed to the respective addresses last given by each
party to the other (provided that all notices to the Company shall be directed
to the attention of the Board with a copy to the Secretary of the Company) or to
such other address as either party may have furnished to the other in writing in
accordance herewith. All notices and communication shall be deemed to have been
received on the date of delivery thereof, on the third business day after the
mailing thereof, or on the second day after deposit thereof with an

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expedited courier service, except that notice of change of address shall be
effective only upon receipt.

          7.   CONFIDENTIALITY. For purposes of this SECTION 7, the term
"COMPANY" shall include, in addition to the Company, its affiliates,
subsidiaries and any of their respective predecessors, successors and assigns.
The term "COMPANY'S BUSINESS" shall mean the business of developing,
manufacturing, selling or distributing high-performance alloys for service in
severe corrosion and high temperature applications.

               (a)  CONFIDENTIAL INFORMATION. As used in this Agreement,
          "CONFIDENTIAL INFORMATION" means any and all confidential, proprietary
          or other information, whether or not originated by the Employee or the
          Company, which is in any way related to the past or present Company's
          Business and is either designated as confidential or not generally
          known by or available to the public. Confidential Information
          includes, but is not limited to (whether or not reduced to writing or
          designated as confidential) (i) information regarding the Company's
          existing and potential customers and vendors; (ii) any contacts
          (including the existence and contents thereof and parties thereto) to
          which the Company is a party or is bound; (iii) information regarding
          products and services being purchased or leased by or provided to the
          Company; (iv) information received by the Company from third parties
          under an obligation of confidentiality, restricted, disclosure or
          restricted use; (v) personnel and financial information of the
          Company; (vi) information with respect to the Company's products,
          services, facilities, business methods, systems, trade secrets,
          technical know-how, and other intellectual property; (vii) marketing
          and developmental plans and techniques, price and cost data, forecasts
          and forecast assumptions, and potential strategies of the Company; and
          (viii) any other information relating to Company which was obtained by
          the Employee in connection with his employment by the Company, whether
          before, on or after the Effective Date.

               (b)  NON-DISCLOSURE AND NON-USE OF CONFIDENTIAL INFORMATION. The
          Employee acknowledges that the Confidential Information of the Company
          is a valuable, unique asset of the Company and the Employee's
          unauthorized use or disclosure thereof could cause irreparable harm to
          the Company for which no remedy at law could be adequate. Accordingly,
          the Employee agrees that the Employee shall hold all Confidential
          Information of the Company in strict confidence and solely for the
          benefit of the Company, and that he shall not, directly or indirectly,
          disclose or use or authorize any third party to disclose or use any
          Confidential Information, except (i) as required for the performance
          of the Employee's duties hereunder, (ii) with the express written
          consent of the Company, (iii) to the extent that any such information
          is in or becomes in the public domain other than as a result of the
          Employee's breach of any of his obligations hereunder, or (iv) where
          required to be disclosed by court order, subpoena or other government
          process and in such event, the Employee shall cooperate with the
          Company in attempting to keep such information confidential. The
          Employee shall follow all Company policies and procedures to protect
          all Confidential Information and take any additional precautions
          necessary to preserve and protect the use or disclosure of any
          Confidential Information at all times.

                                       10
<Page>

               (c)  OWNERSHIP OF CONFIDENTIAL INFORMATION. The Employee
          acknowledges and agrees that all Confidential Information is and shall
          remain the exclusive property of the Company, whether or not prepared
          in whole or in part by the Employee and whether or not disclosed to or
          entrusted to the custody of the Employee. Upon the termination or
          resignation of his employment by the Company, or at any other time at
          the request of the Company, the Employee shall promptly deliver to the
          Company all documents, tapes, disks, or other storage media and any
          other materials, and all copies thereof in whatever form, in the
          possession of the Employee pertaining to the Company's Business,
          including, but not limited to, any containing Confidential
          Information.

               (d)  SURVIVAL.  The Employee's obligations set forth in this
          SECTION 7, and the Company's rights and remedies with respect hereto,
          shall indefinitely survive the termination of this Agreement and the
          Employee's employment by the Company, regardless of the reason
          therefor.

          8.   RESTRICTIVE COVENANTS. For purposes of this SECTION 8, the term
"COMPANY" shall include, in addition to the Company, its affiliates,
subsidiaries and any of their respective predecessors, successors and assigns.

               (a)  NON-COMPETITION. During the Restricted Period and within
         the Restricted Area (each as defined in subsection (c) below), the
         Employee shall not, directly or indirectly, perform on behalf of any
         Competitor (as defined in subsection (c) below) the same or similar
         services as those that the Employee performed for the Company during
         the Employee's employment by the Company or otherwise. In addition, the
         Employee shall not, during the Restricted Period or within the
         Restricted Area, directly or indirectly engage in, own, manage,
         operate, join, control, tend money or other assistance to, or
         participate in or be connected with (as an officer, director, member,
         manager, partner, shareholder, consultant, employee, agent, or
         otherwise), any Competitor.

               (b)  NON-SOLICITATION. During the Restricted Period, the
         Employee shall not, directly or indirectly, for himself or on behalf of
         any Person (as defined in subsection (c) below), (i) solicit or attempt
         to solicit any Customers (as defined in subsection (c) below) or
         prospective Customers with whom the Employee had contact at any time
         during the Employee's employment by the Company; (ii) divert or attempt
         to divert any business of the Company to any other Person; (iii)
         solicit or attempt to solicit for employment, endeavor to entice away
         from the Company, recruit, hire, or otherwise interfere with the
         Company's relationship with, any Person who is employed by or otherwise
         engaged to perform services for the Company (or was employed or
         otherwise engaged to perform services for the Company, as of any given
         time, within the immediately preceding twenty-four (24) month period);
         (iv) cause or assist, or attempt to cause or assist, any employee or
         other service provider to leave the Company; or (v) otherwise interfere
         in any manner with the employment or business relationships of the
         Company or the business or operations then being conducted by the
         Company.

               (c)  DEFINITIONS. For purposes of this SECTION 8, the following
          definitions have the following meanings:

                                       11
<Page>

                         (i)   "COMPETITOR" means any Person that engages in a
                    business that is the same as, or similar to, the Company's
                    Business.

                         (ii)  "CUSTOMER" means any Person which, as of any
                    given date, used or purchased or contracted to use or
                    purchase any services or products from the Company within
                    the immediately preceding twenty-four (24) month period.

                         (iii) "PERSON" means any individual, corporation,
                    partnership, joint venture, association, limited liability
                    company, joint-stock company, trust, or unincorporated
                    organization, or any governmental agency, officer,
                    department, commission, board, bureau, or instrumentality
                    thereof,

                         (iv)  "RESTRICTED AREA" means, because the market for
                    the Company's Business is global, or has the potential of
                    being global, and is not dependent upon the physical
                    location or presence of the Company, the Employee, or any
                    individual or entity that may be in violation of this
                    Agreement, the broadest geographic region enforceable by law
                    (excluding any location where this type of restriction is
                    prohibited by law) as follows: (A) everywhere in the world
                    that has . access to the Company's Business because of the
                    availability of the Internet; (B) everywhere in the world
                    that the Employee has the ability to compete with the
                    Company's Business through the Internet; (C) each state,
                    commonwealth, territory, province and other political
                    subdivision located in North America; (D) each state,
                    commonwealth, territory and other political subdivision of
                    the United States of America; (E) Indiana and any state in
                    which the Employee has performed any services for the
                    Company; (F) any geographical area in which the Company has
                    performed any services or sold any products; (G) any
                    geographical area in which the Company or any of its
                    subsidiaries have engaged in the Company's Business, which
                    has resulted in aggregate sales revenues of at least $25,000
                    during any year in the five (5) year period immediately
                    preceding the commencement of the Restricted Period; (H) any
                    state or other jurisdiction where the Company had an office
                    at any time during the Employee's employment by the Company;
                    (I) within one hundred (100) miles of any location in which
                    the Company had an office at any time during the Employee's
                    employment by the Company; and (J) within one hundred (100)
                    miles of any location in which the Employee provided
                    services for the Company.

                         (v)   "RESTRICTED PERIOD" means the period of time
                    during Employee's employment by the Company plus a period of
                    twelve (12) months from the Date of Termination. In the
                    event of a breach of this Agreement by the Employee, the
                    Restricted Period will be extended automatically by the
                    period of the breach.

               (d)  SURVIVAL. The Employee's obligations set forth in this
          SECTION 8, and the Company's rights and remedies with respect thereto,
          will remain in full force and effect

                                       12
<Page>

          during the Restricted Period and until full resolution of any dispute
          related to the performance of the Employee's obligations during the
          Restricted Period.

               (e)  PUBLIC COMPANY EXCEPTION. The prohibitions contained in this
          SECTION 8 do not prohibit the Employee's ownership of stock which is
          publicly traded, provided that (1) the investment is passive, (2) the
          Employee has no other involvement with the company, (3) the Employee's
          interest is less than five percent (5%) of the shares of the company,
          and (4) the Employee makes full disclosure to the Company of the stock
          at the time that the Employee acquires the shares of stock.

          9.   ASSIGNMENT OF INVENTIONS. Any and all inventions, improvements,
discoveries, designs, works of authorship, concepts or ideas, or expressions
thereof, whether or not subject to patents, copyrights, trademarks or service
mark protections, and whether or not reduced to practice, that are conceived or
developed by the Employee while employed with the Company and which relate to or
result from the actual or anticipated business, work, research or investigation
of the Company (collectively, "INVENTIONS"), shall be the sole and exclusive
property of the Company. The Employee shall do all things reasonably requested
by the Company to assign to and vest in the Company the entire right, title and
interest to any such Inventions and to obtain full protection therefor.
Notwithstanding the foregoing, the provisions of this Agreement do not apply to
an Invention for which no equipment, supplies, facility, or Confidential
Information of the Company was used and which was developed entirely on the
Employee's own time, unless (a) the Invention relates (i) to the Company's
Business, or (ii) to the Company's actual or demonstrably anticipated research
or development, or (b) the Invention results from any work performed by the
Employee for the Company.

          10.  REASONABLENESS. The Employee has carefully considered the nature,
extent and duration of the restrictions and obligations contained in this
Agreement, including, without limitation, the geographical coverage contained in
SECTION 8 and the time periods contained in SECTION 7 and SECTION 8, and
acknowledges and agrees that such restrictions are fair and reasonable in all
respects to protect the legitimate interests of the Company and that these
restrictions are designed for the reasonable protection of the Company's
Business.

          11.  REMEDIES. The Employee recognizes that any breach of this
Agreement shall cause irreparable injury to the Company, inadequately
compensable in monetary damages. Accordingly, in addition to any other legal or
equitable remedies that may be available to the Company, the Employee agrees
that the Company shall be able to seek and obtain injunctive relief in the form
of a temporary restraining order, preliminary injunction, or permanent
injunction, in each case without notice or bond, against the Employee to enforce
this Agreement. The Company shall not be required to demonstrate actual injury
or damage to obtain injunctive relief from the courts. To the extent that any
damages are calculable resulting from the breach of this Agreement, the Company
shall also be entitled to recover damages, including, but not limited to, any
lost profits of the Company and/or its affiliates or subsidiaries. For purposes
of this Agreement, lost profits of the Company shall be deemed to include all
gross revenues resulting from any activity of the Employee in violation of this
Agreement and all such revenues shall be held in trust for the benefit of the
Company. Any recovery of damages by the Company shall be in addition to and not
in lieu of the injunctive relief to which the Company is entitled. In no event
will a damage recovery be considered a penalty in liquidated damages. In
addition, in

                                       13
<Page>

any action at law or in equity arising out of this Agreement, the prevailing
party shall be entitled to recover, in addition to any damages caused by a
breach of this Agreement, all costs and expenses, including, but not limited to,
reasonable attorneys' fees, expenses, and court costs incurred by such party in
connection with such action or proceeding. Without limiting the Company's rights
under this SECTION 11 or any other remedies of the Company, if a court of
competent jurisdiction determines that the Employee breached any of the
provisions of Sections 7 or 8 of this Agreement, the Company will have the right
to cease making any payments or providing any benefits otherwise due to the
Employee under the terms and conditions of this Agreement.

          12.  CLAIMS BY THE EMPLOYEE. The Employee acknowledges and agrees that
any claim or cause of action by the Employee against the Company shall not
constitute a defense to the enforcement of the restrictions and covenants set
forth in this Agreement and shall not be used to prohibit injunctive relief.

          13.  MISCELLANEOUS. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by the Employee and such officer as may be specifically
designated by the Board. No waiver by either party hereto at any time of any
breach by the other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. No agreement or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof may have been made
by either party which are not expressly set forth in this Agreement.

          14.  APPLICABLE LAW AND FORUM. This Agreement has been entered into in
the State of Indiana and shall be governed by and construed in accordance with
the laws of the State of Indiana. The parties agree that any action in law or
equity brought by either party arising from or in connection with this Agreement
or arising from or in connection with the performance by either party of its
obligations hereunder shall be brought only in the United States District Court
for the Southern District of Indiana, Indianapolis Division or the Circuit Court
of Howard County, Indiana, and the parties hereto consent to the jurisdiction of
such forums.

          15.  SEVERABILITY. If a court having proper jurisdiction holds a
particular provision of this Agreement unenforceable or invalid for any reason,
that provision shall be modified only to the extent necessary in the opinion of
such court to make it enforceable and valid and the remainder of this Agreement
shall be deemed valid and enforceable and shall be enforced to the greatest
extent possible under the then existing law. In the event the court determines
such modification is not possible, the provision shall be deemed severable and
deleted, and all other provisions of this Agreement shall remain unchanged and
in full force and effect.

          16.  ENFORCEABILITY IN JURISDICTIONS. The parties hereto intend to and
hereby confer jurisdiction to enforce the covenants contained in SECTIONS 7 and
8 above upon the courts of any state within the geographical scope of such
covenants. If the courts of any one or more of such states shall hold any of the
previous covenants unenforceable by reason of the breadth of such scope or
otherwise, it is the intention of the parties hereto that such determination not
bar or in any way affect the Company's rights to the relief provided above in
the courts of any other states

     [Exhibit 1 - Release of Claims 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.]

                                       14
<Page>

within the geographical scope of such covenants, as to breaches of such
covenants in such other respective jurisdictions, the above covenants as they
relate to each state being, for this purpose, severable into diverse and
independent covenants.

          17.  FAIR DEALING. The Employee acknowledges that the Company has
negotiated this Agreement in good faith and has been fair in its dealing with
the Employee. The Employee shall not raise any defense and expressly waives any
defense against the Company based upon any alleged breach of good faith or fair
dealing by the Company in connection with this Agreement.

          18.  ENTIRE AGREEMENT; RELEASE. This Agreement constitutes the entire
agreement between the parties hereto, and, effective as of the Effective Date,
supersedes all prior agreements, understandings and arrangements, oral or
written, between the parties hereto, with respect to the subject matter hereof
(including, but not limited to, the Severance Agreement). The Employee hereby
unconditionally releases and discharges the Company from any and all claims,
causes of action, demands, lawsuits or other charges whatsoever, known or
unknown, directly or indirectly related to the Severance Agreement arising prior
to the Effective Date.

          19.  OPPORTUNITY TO CONSULT COUNSEL. THE EMPLOYEE ACKNOWLEDGES THAT HE
HAS CAREFULLY READ THIS AGREEMENT AND HAS BEEN GIVEN ADEQUATE OPPORTUNITY, AND
HAS BEEN ENCOURAGED BY THE COMPANY, TO CONSULT WITH LEGAL COUNSEL OF HIS CHOICE
CONCERNING THE TERMS HEREOF BEFORE EXECUTING THIS AGREEMENT.

                            [SIGNATURE PAGE FOLLOWS]

                                       15
<Page>

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by
its duty authorized officer and the Employee has executed this Agreement, each
as of the Effective Date.

                                        COMPANY

                                        HAYNES INTERNATIONAL, INC.

                                        By:
                                           -------------------------------------
                                        Printed: Marcel Martin
                                        Title:   Vice President, Finance, CFO

ATTEST

-------------------------------
Secretary

                                        EMPLOYEE

                                        ----------------------------------------

WITNESS

-------------------------------

     [Exhibit 1--Release of Claims 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.]

                                       16
<Page>

SCHEDULE OF EMPLOYEES PARTY TO THE TERMINATION BENEFITS AGREEMENT

Cijan, August A.
Hanson, Robert I.
Laird, James A.
Martin, Marcel
Neel, Jean C.
Pinkham, Scott R.
Rothman, Michael F.
Spalding, Gregory M.
Sponaugle, Charles, J.

                                       17

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