Document:

Exhibit
10.23

[Execution]

AMENDMENT NO. 6

TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

AMENDMENT NO. 6 TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT, dated as of
November 17, 2006, by and among Haynes International, Inc., a Delaware
corporation (“Haynes Parent”), Haynes Wire Company, a Delaware corporation (“Haynes
Wire” and together with Haynes Parent, each individually, a “Borrower” and
collectively, “Borrowers”), the parties from time to time to the Loan Agreement
(as hereinafter defined) as lenders (each individually, a “Lender” and
collectively, “Lenders”) and Wachovia Capital Finance Corporation (Central), an
Illinois corporation, in its capacity as agent for Lenders pursuant to the Loan
Agreement (in such capacity, “Agent”).

W I
T N E S S E T H

WHEREAS, Borrowers have
entered into financing arrangements with Agent and Lenders pursuant to which
Lenders (or Agent on behalf of Lenders) have made and may make loans and
advances and provide other financial accommodations to Borrowers as set forth
in, and subject to the terms and conditions of, the Amended and Restated Loan
and Security Agreement, dated August 31, 2004, by and among Agent, Lenders,
JPMorgan Chase Bank N.A., successor by merger to Bank One, NA, in its capacity
as documentation agent for Lenders, and Haynes Parent, as amended by Amendment
No. 1 to Amended and Restated Loan and Security Agreement dated November 5,
2004, Amendment No. 2 to Amended and Restated Loan and Security Agreement dated
as of January 27, 2005, Amendment No. 3 to Amended and Restated Loan and
Security Agreement dated May 1, 2005, Amendment No. 4 to Amended and Restated
Loan and Security Agreement dated August 31, 2005
and Amendment No. 5 to Amended and Restated Loan and Security Agreement dated
as of February 2, 2006 (as amended and supplemented
hereby and as the same may hereafter be further amended, modified,
supplemented, extended, renewed, restated or replaced, the “Loan Agreement”)
and the other Financing Agreements (as defined therein); and

WHEREAS, Borrowers have
requested that Agent and Lenders agree to amendments to the Loan Agreement in
connection with Haynes Parent entering into certain arrangements to provide
titanium processing services to Titanium Metals Corporation (“Timet” as
hereinafter further defined) including the grant to Timet of a security
interest in and lien upon certain specified assets of Haynes Parent related
thereto; and

WHEREAS, Agent and
Lenders are willing to agree to such amendments to the Loan Agreement, subject
to the terms and conditions herein; and

WHEREAS, by this
Amendment No. 6, Borrowers, Agent and Lenders desire and intend to evidence
such amendments;

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

1.     Definitions.

1.1.          Additional
Definitions.  As used herein, the
following terms shall have the respective meanings given to them below, and the
other Financing Agreements shall be deemed and are hereby amended to include,
in addition and not in limitation, each of the following definitions:

(a)   “Amendment
No. 6” shall mean this Amendment No. 6 to Amended and Restated Loan and
Security Agreement by and among Borrowers, Agent and Lenders, as the same now
exists or may hereafter be amended, modified, supplemented, extended, renewed,
restated or replaced.

(b)   “4-High
Facility” shall mean, collectively, the Mill and the Real Estate, in each case,
as defined in the Timet Security Agreement as in effect on the date hereof.

(c)   “4-High
Intellectual Property” shall mean the Intellectual Property, as defined in the
Timet Security Agreement as in effect on the date hereof.

(d)   “Timet”
shall mean Titanium Metals Corporation, a Delaware corporation, and its
successors and assigns.

(e)   “Timet
Collateral” shall mean, collectively, the Mill, the Contract Rights, the
Equipment, the Intellectual Property for Titanium Conversion Services, or any
Proceeds thereof to the extent subject to the security interest and lien of
Timet under the Timet Security Agreement as in effect on the date hereof.  Each of the capitalized terms used in this
definition of the term “Timet Collateral” shall have the meanings assigned
thereto in the Timet Security Agreement as in effect on the date hereof.

(f)    “Timet
Conversion Agreement” shall mean the Conversion Services Agreement, dated on or
about the date hereof, by and between Haynes Parent and Timet, as the same now
exists or may hereafter be amended, modified, supplemented, extended, renewed,
restated or replaced.

(g)   “Timet
Documents” shall mean, collectively, the
Timet Conversion Agreement, the Timet Security Agreement, the Timet Option Note
and all agreements, documents or instruments
at any time executed and/or delivered by Borrowers or any other Person with, to
or in favor of Timet in connection therewith or related thereto, as the same
now exist or may hereafter be amended, modified, supplemented, extended,
renewed, restated or replaced.

(h)   “Timet
Debt” shall mean, collectively, (i) any outstanding principal balance under the
Timet Option Note and any accrued and unpaid interest thereon, if any; (ii) the
entire unearned portion of the Timet Fee; (iii) the amount of any Liquidated
Damages (as defined in the Timet Conversion Agreement as in effect on the date
hereof); (iv) the amount of any

 3
 

Termination Fee (as defined in the Timet Conversion Agreement as in
effect on the date hereof); (v) the amount of any Non-Compete Amendment Fee (as
defined in the Timet Conversion Agreement as in effect on the date hereof); and
(vi) any amounts owed by Haynes Parent under Section 5.1 of the Timet
Conversion Agreement as in effect on the date hereof.

(i)    “Timet
Fee” shall mean the amount of $50,000,000 payable by Timet to Haynes Parent in
accordance with Section 2(c) of the Timet Security Agreement as in effect on
the date hereof as consideration for (i) the capacity reservations and
commitments described in Section 2(a) of the Timet Security Agreement and the
Timet Conversion Agreement, (ii) the termination of the standstill provisions
as described in Section 2(b) of the Timet Security Agreement and (iii) the
option to order additional services granted to Timet pursuant to Section 2.1(b)
of the Timet Conversion Agreement.

(j)    “Timet
Obligations” shall mean the Timet Debt together with Haynes Parent’s
obligations under the Timet Documents as in effect on the date hereof.

(k)   “Timet
Option Note” shall mean the secured promissory note made by Haynes Parent in
favor of Timet in an aggregate principal amount of not more than $12,000,000
pursuant to the Timet Documents, substantially in the form attached hereto as
Exhibit A and as the same may hereafter be amended, modified, supplemented,
extended, renewed, restated or replaced.

(l)    “Timet
Security Agreement” shall mean the Access and Security Agreement, dated on or
about the date hereof, by and between Haynes Parent and Timet, as the same now
exists or may hereafter be amended, modified, supplemented, extended, renewed,
restated or replaced.

1.2.          Amendments
to Definitions.

(a)   The
term “Financing Agreements” as used in the Loan Agreement and in the other
Financing Agreements shall be deemed and each such reference is hereby amended
to include, in addition and not in limitation, this Amendment No. 6, as the
same now exists or may hereafter be amended, modified, supplemented, extended,
renewed, restated or replaced.

(b)   The
term “Haynes Parent Fixed Asset Availability” as used in the Loan Agreement and
in the other Financing Agreements shall be deemed and each such reference is
hereby amended to mean $10,940,505.22; provided, that, effective
on the first day of each month after the date hereof, the Haynes Parent Fixed
Asset Availability shall be reduced by the amount equal to $198,386 on the
first day of each such month.

1.3.          Interpretation.  For purposes of this Amendment No. 6, unless
otherwise defined or amended herein, including, but not limited to, those terms
used and/or defined in the recitals hereto, all terms used herein shall have
the respective meanings assigned to such terms in the Loan Agreement.

2.     Release of Timet
Collateral.

2.1.          Subject
to the satisfaction of each of the conditions precedent set forth in Section 8
hereof, Agent hereby releases its security interests in and liens upon the
Timet Collateral;

 4
 

provided, that nothing contained herein
shall be deemed a release or termination by Agent of any security interests in
and liens upon any assets of Borrowers in favor of Agent other than the Timet
Collateral, all of which shall continue in full force and effect.  Nothing contained herein shall be construed
in any manner to constitute a subordination, waiver, release or termination (other
than as to the Timet Collateral as provided herein) or to otherwise limit or
impair any of the Obligations of Borrowers. 
Each Lender authorizes and consents to the execution and delivery by
Agent of such release agreements and the filing of UCC Financing Statement
Amendments to reflect such release of security interests and liens, in each
case in form and substance satisfactory to Agent and the Collateral Access
Agreement referred to below.

2.2.          Section
5.1(b) of the Loan Agreement is hereby amended by adding a new Section
5.1(b)(iv) at the end thereof as follows:

“(iv) the Timet
Collateral.”

3.     Sale of Assets, Etc.  Section 9.7(b) of the Loan Agreement is
hereby amended by adding a new Section 9.7(b)(x) at the end thereof as follows:

“(x) the grant by
Haynes Parent of a non-exclusive license of the 4-High Intellectual Property to
Timet in accordance with Section 5 of the Timet Security Agreement as in effect
on the date of Amendment No. 6; provided, that, such license is
only for the use of the 4-High Intellectual Property to the extent required for
the titanium conversion services provided for under the Timet Conversion
Agreement as in effect on the date of Amendment No. 6 and during the time that
Timet is exercising its rights of access to the Timet Collateral in accordance
with the terms of the Timet Security Agreement.”

4.     Encumbrances.  Section 9.8 of the Loan Agreement is hereby
amended by adding a new Section 9.8(p) at the end thereof as follows:

“(p) the security
interests in and liens upon the Timet Collateral to secure the Timet Obligations
granted by Haynes Parent to Timet pursuant to the Timet Security Agreement as
in effect on the date of Amendment No. 6.”

5.     Indebtedness.  Section 9.9 of the Loan Agreement is hereby
amended by adding a new Section 9.9(l) at the end thereof as follows:

“(l) the Timet
Debt arising pursuant to the Timet Documents as in effect on the date of
Amendment No. 6; provided, that, 
the aggregate amount of such Indebtedness shall consist of and not
exceed (A) the amount of the Timet Fee as reduced by an amount equal to
$2,500,000 on November 17 of each year commencing on November 17,
2007, plus (B) the lesser of the amount equal to $12,000,000 or the amount of
the cash received by Haynes Parent from Timet giving rise to Indebtedness
evidenced by the Timet Option Note in the event that Timet makes a loan in such
amount to Haynes Parent in accordance with the terms of Section 2.1(c) of the
Timet Conversion Agreement as in effect on the date of Amendment No. 6, as
reduced by all payments in respect thereof, plus accrued and unpaid interest
thereon, if any, (C) the contingent liability of Haynes Parent to Timet for
liquidated damages as provided in Section 5.3(a)(y) of the Timet Conversion

 5
 

Agreement (not to exceed
$25,000,000 in the aggregate), (D) the contingent liability of Haynes Parent to
reimburse Timet under Section 5.1 of the Timet Conversion Agreement as a result
of the failure of Haynes Parent to comply with the warranty set forth in
Section 6.1 of the Timet Conversion Agreement, (E) the amount of any Termination
Fee owing as a result of a Change in Control (as defined in the Timet
Conversion Agreement) calculated in accordance with Section 13.2 of the Timet
Conversion Agreement (not to exceed $25,000,000), and (F) the amount of any
Non-Compete Amendment Fee calculated in accordance with Section 11.2 of the
Timet Conversion Agreement (not to exceed $15,000,000 in the aggregate); (ii)
Haynes Parent shall not, directly or indirectly, (A) amend, modify, alter or
change the terms of such Indebtedness or any of the Timet Documents as in
effect on the date of Amendment No. 6 (or in the case of the Timet Option Note
as set forth in Exhibit A to Amendment No. 6, except to complete such form as
required), except, that, Haynes Parent may, after prior written notice to Agent,
amend, modify, alter or change the terms thereof so as to extend the maturity
thereof, or defer the timing of any payments in respect thereof, or to forgive
or cancel any portion of such Indebtedness (other than pursuant to payments
thereof), or to reduce the interest rate or any fees in connection therewith,
or to make any covenant less restrictive, or (B) redeem, retire, defease,
purchase or otherwise acquire such Indebtedness, or set aside or otherwise
deposit or invest any sums for such purpose; (iii) Agent shall receive notice
that Timet has exercised its option to require additional output pounds of
titanium conversion services under Section 2.1(b) of the Timet Conversion
Agreement promptly upon the receipt of such notice by Haynes Parent and a copy
of the Timet Option Note as executed and delivered by Haynes Parent to Timet
upon the execution and delivery thereof by Haynes Parent to Timet, and (iv)
Haynes Parent shall furnish or cause to be furnished to Agent all notices or
demands in connection with such Indebtedness or otherwise under the Timet
Documents either received by Haynes Parent or on its behalf, promptly after the
receipt thereof, or sent by Haynes Parent or on its behalf, concurrently with
the sending thereof, as the case may be.”

6.     Events of Default.  Section 10.1(n) of the Loan Agreement is
hereby amended by adding “or the Timet Documents” immediately before the period
at the end of such Section.

7.     Representations and
Warranties.  Each Borrower hereby
represents and warrants to Agent and Lenders the following (which shall survive
the execution and delivery of this Amendment No. 6), the truth and accuracy of
which on the date hereof are a continuing condition of the making of Loans and
providing Letter of Credit Accommodations to Borrowers:

7.1.          This
Amendment No. 6 has been duly authorized, executed and delivered by it, and has
been authorized by all necessary action on the part of such Borrower which is a
party hereto (and, if necessary, their respective stockholders) and each such
agreement is in full force and effect as of the date hereof, and the agreements
and obligations of Haynes Parent and Haynes Wire, as the case may be, contained
herein, constitute the legal, valid and binding obligations of such Borrower,
enforceable against it in accordance with its terms, except as such
enforceability may be limited by any applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ rights
generally and by general principles of equity.

 6
 

7.2.          The
execution, delivery and performance of this Amendment No. 6 (a) are all within
the corporate powers of Haynes Parent and Haynes Wire and (b) are not in
contravention of law or the terms of such Borrower’s certificate of
incorporation, by-laws, or other organizational documentation, or any
indenture, agreement or undertaking to which such Borrower is a party or by
which such Borrower or its property are bound (including, without limitation,
any Timet Document).

7.3.          After
giving effect to this Amendment No. 6 and to the transactions contemplated by
the Timet Documents, no Default or Event of Default exists or has occurred and
is continuing.

7.4.          A
correct and complete copy of the Timet Security Agreement (including all
exhibits thereto) as executed and delivered by the parties thereto is set forth
on Exhibit B to this Amendment No. 6. 
Borrowers have delivered, or caused to be delivered, to Agent true,
correct and complete copies of all of the Timet Documents that are in effect on
the date hereof.

8.     Conditions Precedent.  The amendments contained herein shall only be
effective upon the receipt by Agent of each of the following, in each case in
form and substance satisfactory to Agent by no later than November 20, 2006:

8.1.          an
executed original or executed original counterparts of this Amendment No. 6 (as
the case may be), duly authorized, executed and delivered by the respective
party or parties hereto;

8.2.          true
and complete copies of the Timet Documents and any documents relating thereto,
all as duly executed and delivered by the parties thereto;

8.3.          a
Collateral Access Agreement duly executed and delivered by Timet with respect
to the Timet Collateral;

8.4.          evidence
of the receipt by Haynes Parent of not less than $50,000,000 in cash
constituting the Timet Fee payable to it under the Timet Security Agreement (of
which a portion is being sent to Agent as provided below);

8.5.          receipt
by Agent of a payment from Haynes Parent of not less than $4,537,660 for
application to the Obligations in such order and manner as Agent may determine;

8.6.          a
true and correct copy of any consent, waiver or approval (if any) to or of this
Amendment No. 6 or the transactions contemplated by the Timet Documents which
any Borrower is required to obtain from any other Person; and

8.7.          such
approvals of Lenders, in form and substance satisfactory to Agent, to the terms
and conditions of this Amendment No. 6 as are required under the terms of the
Loan Agreement.

9.     Provisions of General
Application.

9.1.          Effect
of this Amendment.  Except as expressly
amended pursuant hereto, no other changes or modifications to the Financing
Agreements are intended or implied and, in all

 7
 

other respects, the Financing Agreements are hereby specifically
ratified, restated and confirmed by all parties hereto as of the effective date
hereof.  To the extent that any provision
of the Loan Agreement or any of the other Financing Agreements are inconsistent
with the provisions of this Amendment No. 6, the provisions of this Amendment
No. 6 shall control.  The Loan Agreement
and this Amendment No. 6 shall be read and construed as one Agreement.

9.2.          Governing
Law.  The validity, interpretation
and enforcement of this Amendment No. 6 and the other Financing Agreements
(except as otherwise provided therein) and any dispute arising out of the
parties hereto, whether in contract, tort, equity or otherwise, shall be
governed by the internal laws of the State of Illinois, but excluding any
principles of conflicts of law or other rule of law that would cause the
application of the law of any jurisdiction other than the laws of the State of
Illinois.

9.3.          Binding
Effect.  This Amendment No. 6 shall
be binding upon and inure to the benefit of each of the parties hereto and
their respective successors and assigns. 
Any acknowledgments or consents contained herein shall not be construed
to constitute a consent to any other or further action by a Borrower or to
entitle such Borrower to any other consent.

9.4.          Further
Assurances.  Each Borrower shall
execute and deliver such additional documents and take such additional action
as may be reasonably requested by Agent and Lenders to effectuate the
provisions and purposes of this Amendment No. 6.

9.5.          Headings.  The headings listed herein are for
convenience only and do not constitute matters to be construed in interpreting
this Amendment No. 6.

9.6.          Counterparts.  This Amendment No. 6 may be executed in any
number of counterparts, each of which shall be an original but all of which
taken together shall constitute one and the same Agreement.  Delivery of an executed counterpart of this
Amendment No. 6 by telefacsimile or other electronic means shall have the same
force and effect as the delivery of an original executed counterpart of this
Amendment No. 6.  Any party delivering an
executed counterpart of this Amendment No. 6 by telefacsimile or other
electronic means shall also deliver an originally executed counterpart of this
Amendment No. 6, but the failure to do so shall not affect the validity,
enforceability or binding effect of this Amendment No. 6.

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 8

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment No. 6 to be duly executed and
delivered by their authorized officers as of the date and year first above
written.

	
  

  	
   

  	
  WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL), as
  Agent and as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ VICKY GEIST

  
	
   

  	
   

  	
  Title: VICE PRESIDENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HAYNES INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ FRANCIS PETRO

  
	
   

  	
   

  	
  Title: President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HAYNES WIRE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ FRANCIS PETRO

  
	
   

  	
   

  	
  Title: President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AGREED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  JPMORGAN CHASE BANK, N.A.,

  	
   

  	
   

  
	
  successor by merger to BANK ONE, NA (Main Office
  Chicago)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ JOHN FREEMAN

  	
   

  	
   

  
	
  Title: Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WESTERNBANK PUERTO RICO

  	
   

  	
   

  
	
  BUSINESS CREDIT DIVISION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ JULIA FRENTIS

  	
   

  	
   

  
	
  Title: SVP Portfolio Manager

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ABLECO FINANCE LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Title: Senior Vice PresidentExhibit
10.24

Summary of

2007 Management
Incentive Plan

On January 12, 2007, the Compensation Committee of the
Board of Directors of Haynes International, Inc. (the “Company”) approved the
2007 Management Incentive Plan (the “Plan”). Under the Plan, certain employees
of the Company are eligible for cash awards based on Company performance,
including, but not limited to, Francis J. Petro, the President and Chief
Executive Officer, and the other named executive officers as set forth in the
Company’s Annual Report on Form 10-K for the fiscal year ended September 30,
2006,  which are Marcel Martin, Vice
President Finance and Chief Financial Officer; August A. Cijan, Vice President —
Operations; James A. Laird, Vice President International Sales and Marketing; and
Gregory M. Spalding, Vice President — Haynes Wire and Chief Operating Officer
(Messrs. Petro, Martin, Cijan, Laird and Spalding are herein referred to
collectively as the “named executive officers”).

If the Company meets certain specific financial targets
established by the Compensation Committee for fiscal 2007 (the “Financial
Targets”), each named executive officer is eligible for a cash payment under
the Plan based on fiscal 2007 base salary. The target cash payments under the
Plan are 60% of fiscal 2007 base salary for Mr. Petro, 45% of fiscal 2007 base
salary for Mr. Martin, Mr. Cijan and Mr. Laird, and 25% of fiscal 2007 base
salary for Mr. Spalding.  The named
executive officers are also eligible for a cash payment under the Plan if the
Company’s performance is equal to at least 85% of the Financial Targets.  Those cash payments would be 35% of fiscal
2007 base salary for Mr. Petro, 25% of fiscal 2007 base salary for Mr. Martin,
Mr. Cijan and Mr. Laird, and 12.5% of fiscal 2007 base salary for Mr. Spalding.  If the Company’s performance exceeds the
Financial Targets by at least 15%, the named executive officers would be
eligible for cash payments of 90% of fiscal 2007 base salary for Mr. Petro,
67.5% of fiscal 2007 base salary for Mr. Martin, Mr. Cijan and Mr. Laird, and
37.5% of fiscal 2007 base salary for Mr. Spalding.  All payments pursuant to the Plan must be
approved by the Company’s Board of Directors.

 Individual
awards may be made at the discretion of the Board of Directors even if the
Company’s performance is below the Financial Targets, provided that liquidity
goals for fiscal 2007 established by the Compensation Committee are met.  In addition, a discretionary bonus pool is
available for grants by the Board of Directors, provided that in no case will
total cash bonuses pursuant to the Plan exceed $2.2 million.  The Board of Directors has full discretion to
eliminate, delay or change any awards or payouts and may choose to pay awards
at any level of performance.

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"}]]