Document:

Exhibit
10.2

HAYNES
INTERNATIONAL, INC.

DEATH BENEFIT PLAN

MASTER PLAN DOCUMENT

Effective January 1, 2003

ARTICLE 1

ESTABLISHMENT OF THE PLAN

1.1.                            ESTABLISHMENT
OF THE PLAN. Haynes International, Inc. (the “Company”) hereby establishes a
death benefit only plan for eligible employees of the Employer, effective as of
January 1, 2003, to be known as the “Haynes International, Inc. Death Benefit
Plan” (the “Plan”), as set forth in this document.

ARTICLE 2

ELIGIBILITY AND PARTICIPATION

2.1.                            ELIGIBILITY
AND PARTICIPATION. Participation in the Plan shall be limited to only those
employees of the Haynes International, Inc. Supplemental Executive Retirement
Plan. From that group, the Haynes International, Inc. Retirement Committee
shall select, in its sole discretion, employees to participate in the Plan. Any
selected employee shall become a participant as of the date specified by the
Committee. No employee has a right to be selected as a participant under this
Plan, nor to continue as a participant under this Plan indefinitely. The
Committee, however, shall comply with the terms of any employment agreement
entered into by the Company with a particular employee in determining the
eligibility of that employee to participate in this Plan. Subject solely to any
individual employment agreement, eligibility and participation in this Plan
shall cease automatically when a participant becomes totally and permanently
disabled as determined by the Committee, when a participant first begins
receiving a retirement benefit under any retirement benefit plan maintained by
the Company for executives, or when otherwise determined by the Committee in its
sole discretion.

ARTICLE 3

DEATH BENEFITS

3.1.                            DEATH
BENEFITS. If a participant dies while employed by the Company, his or her
designated beneficiary shall be entitled to receive a death benefit equal to
the amount determined from time to time by the Committee and set forth in
Exhibit A to this Plan.

3.2.                            DESIGNATION
OF BENEFICIARY. Upon the commencement of participation in the Plan, each
participant shall designate in writing on a form provided by the Committee and
set forth in Exhibit B a beneficiary or beneficiaries to receive any death
benefits payable under the terms of this Plan. A participant may revoke his or
her beneficiary designation at any time and submit a new designation in
writing. Upon the death of the participant, the

 1
 

Committee shall pay the death benefit due under this Plan in accordance
with the last written beneficiary designation received by the Committee prior
to the date of the participant’s death. If no beneficiary is designated, the
death benefit shall be paid to the participant’s spouse, or if none, per
stirpes to the participant’s descendants living at the time of his or her
death, or, if none, to the participant’s estate.

3.3.         METHOD OF PAYMENT. Death
benefits provided under this Plan shall be paid as set forth in Exhibit A.

ARTICLE 4

GENERAL PROVISIONS

4.1.                            FUNDING.
No funds shall be segregated or earmarked for any participant or beneficiary.
However, the Company may use any means to set aside or generate funds necessary
to satisfy its obligations under the Plan, including the purchase of insurance
or the establishment of one or more grantor trusts of the type referred to as a
“rabbi trust.” Any such assets that are set aside in the discretion of the
Company for purposes of this Plan shall at all times be subject to the claims
of the Company’s general creditors in the event of insolvency, and no participant
or beneficiary shall have any right, title or interest in any fund, any
specific sum of money, any grantor trust, or any asset that may be acquired by
the Company with respect to the Company’s obligations under this Plan (other
than as a general creditor of the Company with an unsecured claim against the
general assets), or in any other assets of the Company by virtue of
participation in this Plan.

4.2.                            EMPLOYMENT
RIGHTS. Establishment of this Plan shall not be construed to give any
participant the right to be retained by the Company, or to any benefits not
specifically provided by the Plan.

4.3.                            EFFECT
ON OTHER BENEFIT PLANS. Amounts paid under this Plan shall not be considered to
be compensation for the purposes of any qualified retirement plan maintained by
the Company. The treatment of such amounts under other employee benefit plans
shall be pursuant to the provisions of each plan.

4.4.                            APPLICABLE
LAW. This Plan shall be construed under the laws of the State of Indiana, and
shall be binding upon and inure to the benefit of the participant and’ the
Company and any successor company of the Company by way of merger,
reorganization, acquisition, or sale by the Company of substantially all of its
assets.

 2
 

ARTICLE 5

AMENDMENT AND TERMINATION,

5.1.                            AMENDMENT
AND TERMINATION. The Company reserves the right to amend the Plan or terminate
the Plan at any time. However, no such amendment or termination shall adversely
affect the rights of a beneficiary already receiving payments under the Plan.

IN WITNESS WHEREOF,
the Company has signed this Plan document as of January 1, 2003.

	
  

  	
  HAYNES
  INTERNATIONAL, INC., a Delaware 

  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ FRANCIS J.
  PETRO

  	
   

  
	
   

  	
  Title:

  	
  PRESIDENT &
  CEO

  	
   

  
					

 

[Exhibit A -
Determination of Death Benefit Amount and Exhibit B - Beneficiary Form have
been omitted from the Plan 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 exhibits to the SEC upon request from the SEC.]

 3Exhibit
10.3
  AMENDMENT NUMBER
ONE

TO THE

HAYNES INTERNATIONAL, INC. DEATH BENEFIT PLAN
  The Haynes
International, Inc. Death Benefit Plan (“Plan”) is hereby amended by Haynes
International, Inc. (the “Corporation”) as hereinafter provided.
  BACKGROUND
  The Corporation
reserved the right to amend the Plan pursuant to SECTION 5.1 of the Plan and
now desires to amend the Plan to modify EXHIBIT A attached to the Plan in order
to remove restrictions and further qualify certain death benefits payable by
the Corporation under the Plan.
  AMENDMENT
  The Plan is hereby
amended, effective as of the dates indicated herein, as follows:
  1.             The phrase “$1,600,000 payable from
10/01/03 to 9/30/04” set forth in EXHIBIT A attached to the Plan is hereby
deleted in its entirety and replaced with the following language:
  “$1,600,000 payable from 10/01/03 until such time as Frances Petro (“Petro”)
shall retire from employment with the Company (“Retirement”); provided,
however, that any death benefits to be provided to Petro under this Plan prior
to Retirement shall be reduced by the SERP Benefit (as defined in the SERP
Plan) Petro (or his beneficiary) has previously received or has become entitled
to receive, whether in cash or otherwise, under the Haynes International, Inc.
Supplemental Executive Retirement Plan, effective January 1, 2002 (the “SERP
Plan”).”
  2.             The phrase “Agreement terminates
10/01/04 unless continued by mutual consent of the parties” set forth in
EXHIBIT A attached to the Plan is hereby deleted in its entirety.
  3.             This Amendment may be executed in
multiple counterparts, each of which shall be deemed an original, but all 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.

    4.             This Amendment amends the Plan to
the extent provided herein only and all other provisions thereof shall remain
in full force and effect.
  The Amendment
Number One to the Haynes International, Inc. Death Benefit Plan is executed as
of the 30th day of August, 2004.
  	  
  	  “Corporation”
  
	   
  	   
  
	   
  	  HAYNES
  INTERNATIONAL, INC.
  
	   
  	   
  
	   
  	   
  
	   
  	  By:
  	  /s/ Jean C. Neel
  	   
  
	   
  	   
  
	   
  	  Title: 
  	  Vice President ,
  Corporate Affairs and Corporate Secretary
  	   
  
					

   

 2Exhibit
10.4

HAYNES INTERNATIONAL, INC.

Supplemental Executive Retirement Plan

PLAN DOCUMENT

EFFECTIVE JANUARY
1, 2002

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PURPOSE

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I.

  	
   

  	
  Definitions

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
   

  	
  Eligibility

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1.

  	
   

  	
  Selection by Committee

  	
   

  	
  8

  
	
  2.2.

  	
   

  	
  Enrollment Requirements

  	
   

  	
  8

  
	
  2.3.

  	
   

  	
  Commencement of Participation

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III.

  	
   

  	
  Benefits

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1.

  	
   

  	
  Normal Benefit

  	
   

  	
  8

  
	
  3.2.

  	
   

  	
  Change in Control Benefit

  	
   

  	
  8

  
	
  3.3.

  	
   

  	
  Death Prior to the Commencement of Benefits

  	
   

  	
  8

  
	
  3.4.

  	
   

  	
  Death After the Commencement of Benefits

  	
   

  	
  9

  
	
  3.5.

  	
   

  	
  Limitation on Benefits

  	
   

  	
  9

  
	
  3.6.

  	
   

  	
  Withholding and Payroll Taxes

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
   

  	
  Forms of Benefit Payment

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1.

  	
   

  	
  Normal Forms of Benefit

  	
   

  	
  9

  
	
  4.2.

  	
   

  	
  Optional Forms of Benefit

  	
   

  	
  9

  
	
  4.3.

  	
   

  	
  Automatic Lump Sum Benefit

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V.

  	
   

  	
  Termination, Amendment or Modification of the Plan

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1.

  	
   

  	
  Termination

  	
   

  	
  10

  
	
  5.2.

  	
   

  	
  Amendment

  	
   

  	
  10

  
	
  5.3.

  	
   

  	
  Plan Agreement

  	
   

  	
  10

  
	
  5.4.

  	
   

  	
  Effect of Payment

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
   

  	
  Other Benefits and Agreements

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1.

  	
   

  	
  Coordination with Other Benefits

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII.

  	
   

  	
  Administration of the Plan

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1.

  	
   

  	
  Committee Duties

  	
   

  	
  11

  
	
  7.2.

  	
   

  	
  Agents

  	
   

  	
  11

  
	
  7.3.

  	
   

  	
  Binding Effect of Decisions

  	
   

  	
  11

  

 

 1
 

 

 

	
  7.4

  	
   

  	
  Indemnity of Committee

  	
   

  	
  11

  
	
  7.5.

  	
   

  	
  Employer Information

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  	
   

  	
  Claims Procedures

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1.

  	
   

  	
  Presentation of Claim

  	
   

  	
  11

  
	
  8.2.

  	
   

  	
  Notification of Decision

  	
   

  	
  12

  
	
  8.3.

  	
   

  	
  Review of a Denied Claim

  	
   

  	
  12

  
	
  8.4.

  	
   

  	
  Decision on Review

  	
   

  	
  13

  
	
  8.5.

  	
   

  	
  Legal Action

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX.

  	
   

  	
  Beneficiary Designation

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1.

  	
   

  	
  Beneficiary

  	
   

  	
  14

  
	
  9.2.

  	
   

  	
  Beneficiary Designation; Change

  	
   

  	
  14

  
	
  9.3.

  	
   

  	
  Acknowledgment

  	
   

  	
  14

  
	
  9.4.

  	
   

  	
  No Beneficiary Designation

  	
   

  	
  14

  
	
  9.5.

  	
   

  	
  Doubt as to Beneficiary

  	
   

  	
  14

  
	
  9.6.

  	
   

  	
  Discharge of Obligations

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X.

  	
   

  	
  Trust

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1.

  	
   

  	
  Establishment of the Trust

  	
   

  	
  15

  
	
  10.2.

  	
   

  	
  Interrelationship of the Plan and the Trust

  	
   

  	
  15

  
	
  10.3.

  	
   

  	
  Distributions From the Trust

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI.

  	
   

  	
  Miscellaneous

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.1.

  	
   

  	
  Status of the Plan

  	
   

  	
  15

  
	
  11.2.

  	
   

  	
  Unsecured General Creditor

  	
   

  	
  15

  
	
  11.3.

  	
   

  	
  Employer’s Liability

  	
   

  	
  15

  
	
  11.4.

  	
   

  	
  Nonassignability

  	
   

  	
  15

  
	
  11.5.

  	
   

  	
  Not a Contract of Employment

  	
   

  	
  16

  
	
  11.6.

  	
   

  	
  Furnishing Information

  	
   

  	
  16

  
	
  11.7.

  	
   

  	
  Terms

  	
   

  	
  16

  
	
  11.8.

  	
   

  	
  Captions

  	
   

  	
  16

  
	
  11.9.

  	
   

  	
  Governing Law

  	
   

  	
  16

  
	
  11.10.

  	
   

  	
  Notice

  	
   

  	
  16

  
	
  11.11.

  	
   

  	
  Successors

  	
   

  	
  17

  
	
  11.12.

  	
   

  	
  Spouse’s Interest

  	
   

  	
  17

  
	
  11.13.

  	
   

  	
  Validity

  	
   

  	
  17

  
	
  11.14.

  	
   

  	
  Incompetent

  	
   

  	
  17

  
	
  11.15.

  	
   

  	
  Court Order

  	
   

  	
  17

  

 

 2
 

 

	
  11.16

  	
   

  	
  Distribution in the Event of Taxation

  	
   

  	
  18

  

 

 3
 

HAYNES
INTERNATIONAL, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

EFFECTIVE JANUARY
1, 2002

PURPOSE

The purpose of
this Plan, as hereinafter defined, is to provide specified benefits to a select
group of management and highly compensated employees of Haynes International,
Inc., a Delaware corporation, and its subsidiaries, if any, that sponsor this
Plan. This Plan shall be unfunded for tax purposes and for purposes of Title I
of ERISA.

ARTICLE I.

DEFINITIONS

For purposes
hereof, unless otherwise clearly apparent from the context, the following
phrases or terms shall have the following indicated meanings:

1.1           “Actuarial
Equivalent” shall mean a benefit or benefits, or a payment or payments, which
are of equal value to the benefits for which they are to be substituted.
Equivalence of value is determined from actuarial calculations based on certain
actuarial assumptions as to mortality, interest and return of assets, which
will be determined by the most recent actuarial report of the Haynes
International, Inc. Defined Pension Benefit Plan, applied with respect to the
particular Form, as hereinafter defined, of payment under this Plan.

1.2           “Average
Compensation” shall mean the average of a Participant’s, as hereinafter
defined, Compensation, as hereinafter defined, for his or her last sixty (60)
full calendar months of employment with an Employer, as hereinafter defined,
(or, if the Participant has been employed for less than sixty (60) full
calendar months, the actual number of the Participant’s full calendar months of
employment) prior to the Determination Date, as hereinafter defined.

1.3           “Beneficiary”
shall mean the individual designated in accordance with Article 9 that is
entitled to receive benefits under this Plan upon the death of a Participant.

1.4           “Beneficiary
Designation Form” shall mean the form established from time to time by the
Committee that a Participant completes, signs and returns to the Committee to
designate one or more Beneficiaries.

1.5           “Board”
shall mean the board of directors of the Company, as hereinafter defined.

1.6           “Change
in Control” shall mean the first to occur of any of the following events:

 4
 

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

(b)           During
any period of not more than two consecutive years, not including any period
prior to the adoption of this Plan, individuals who, at the beginning of such
period constitute the Board, and any new director (other than a director
designated by a person who has entered into an agreement with the Company to effect
a transaction described in clause (a), (c), (d) or (e) of this Section 1.6)
whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least three-fourths (3/4ths) of the
directors then still in office, who either were directors at the beginning of
the period or whose election or nomination for election was previously so approved,
cease for any reason to constitute at least a majority thereof;

(c)           The
shareholders of the Company approve any consolidation or merger of the Company,
other than a consolidation or merger of the Company in which the holders of the
common stock of the Company immediately prior to the consolidation or merger
hold more than fifty percent (50%) of the voting rights of the surviving
corporation immediately after the consolidation or merger;

(d)           The
shareholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company; or

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

1.7           “Change
in Control Benefit” shall mean the benefits set forth in Section 3.2.

1.8           “Claimant”
shall have the meaning set forth in Section 8.1.

1.9           “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time.

1.10         “Committee”
shall mean the Committee described in Article 7.

1.11         “Company”
shall mean Haynes International, Inc., a Delaware Corporation, and any
successor to all or substantially all of the Company’s assets or business.

1.12         “Compensation”
shall mean the annual base salary and bonus paid to a Participant under any Employer’s
annual bonus or cash incentive plans, but excluding commissions,

 5
 

overtime, fringe benefits, stock options, relocation expenses, non-monetary
awards, director fees and other fees, and automobile and other allowances
(whether or not such allowances are included in the Employee’s, as hereinafter
defined, gross income). Annual base salary and bonus amounts shall be
calculated before reduction for compensation deferred pursuant to all
qualified, non-qualified and Code Section 125 plans of any Employer; provided,
however, that all such amounts will be included in compensation only to the
extent that had there been no such plan, the amount would have been payable in
cash to the Employee.

1.13         “Death
Benefit” shall mean the benefits due, if any, to the Participant’s Beneficiary
pursuant to Article 3 upon the Participant’s death.

1.14         “Determination
Date” shall mean, for purposes of calculating the SERP Benefit, as hereinafter
defined, the earlier of (i) date on which a Change in Control occurs, (ii) the
date on which the Participant dies while employed by an Employer, or (iii) the
date on which the Participant experiences a Termination of Employment, as
hereinafter defined.

1.15         “Election
Form” shall mean the form established from time to time by the Committee that a
Participant completes, signs and returns to the Committee to make an election
under the Plan.

1.16         “Employee”
shall mean any individual employed by an Employer.

1.17         “Employer(s)”
shall mean the Company and/or any of its subsidiaries (now in existence or
hereafter formed or acquired) that have been selected by the Board to
participate in the Plan and have adopted the Plan as a sponsor.

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

1.19         “Form”
shall mean form of payment as described in Article 4.

1.20         “Life
Annuity” shall mean a benefit that is payable monthly in the form of an annuity
for the life of the Participant and that is equal to the Participant’s SERP
Benefit.

1.21         “Lump
Sum” shall mean a benefit that is payable in a lump sum and that is the
Actuarial Equivalent of the Participant’s SERP Benefit.

1.22         “Normal
Benefit” shall mean the benefits set forth in Section 3.1.

1.23         “Participant”
shall mean any Employee (i) who is selected to participate in the Plan, (ii)
who elects to participate in the Plan, (iii) who signs a Plan Agreement and a
Beneficiary Designation Form, (iv) whose signed Plan Agreement and Beneficiary
Designation Form

 6
 

are accepted by the Committee, (v) who commences participation in the Plan,
and (vi) whose Plan Agreement has not terminated.

1.24         “Plan”
shall mean the Company’s Supplemental Executive Retirement Plan, which shall be
evidenced by this instrument and by each Plan Agreement, as amended from time to
time.

1.25         “Plan
Agreement” shall mean a written agreement, as may be amended from time to time,
which is entered into by and between an Employer and a Participant. Each Plan
Agreement executed by a Participant shall provide for the entire benefit to which
such Participant is entitled under the Plan; should there be more than one Plan
Agreement, the Plan Agreement bearing the latest date of acceptance by the
Employer shall supercede all previous Plan Agreements in their entirety and
shall govern such entitlement. The terms of any Plan Agreement may be different
for any Participant, and any Plan Agreement may provide additional benefits not
set forth in the Plan or limit the benefits otherwise provided under the Plan;
provided, however, that any such additional benefits or benefit limitations
must be agreed to by both the Employer and the Participant.

1.26         “SERP
Benefit” shall have the meaning set forth in each Participant’s Plan Agreement.

1.27         “Term
Certain and Life Annuity” shall mean a benefit that is payable monthly in the
form of an annuity for the greater of (i) ten (10) years, or (ii) the life of
the Participant, and that is the Actuarial Equivalent of the Participant’s SERP
Benefit. If the Participant dies prior to the receipt of the guaranteed monthly
payments, then the balance of the guaranteed monthly payments shall be paid to
the Participant’s designated Beneficiary and shall continue until the total guaranteed
monthly payments have been made to the Participant and his or her Beneficiary.

1.28         “Termination
of Employment” or “Terminates Employment” shall mean severance from employment
with all Employers, voluntarily or involuntarily, for any reason, including
retirement or disability, but excluding death.

1.29         “Trust”
shall mean the trust, if any, established by the Company as set forth in
Article 10.

1.30         “Year(s)
of Service” shall mean the total number of full years plus whole calendar
months in which a Participant has been employed by one or more Employers,
computed as of the Determination Date. For purposes of this definition, a year
of employment shall be a 365 day period (or 366 day period in the case of a
leap year) that, for the first year of employment, commences on the Employee’s
date of hiring and that, for any subsequent year, commences on an anniversary
of that hiring date.

 7
 

ARTICLE II.

ELIGIBILITY

2.1.          SELECTION
BY COMMITTEE. Participation in the Plan shall be limited to a select group of
management and highly compensated Employees of the Employers, as determined by
the Committee in its sole discretion. From that group, the Committee shall
select, in its sole discretion, Employees to participate in the Plan.

2.2.          ENROLLMENT
REQUIREMENTS. As a condition to participation, each selected Employee shall
complete, execute and return to the Committee a Plan Agreement and a
Beneficiary Designation Form, all within the time period specified by the
Committee. In addition, the Committee shall establish from time to time such
other enrollment requirements as it determines in its sole discretion are necessary.

2.3.          COMMENCEMENT
OF PARTICIPATION. Provided an Employee selected to participate in the Plan has
met all enrollment requirements set forth in this Plan and required by the
Committee, including returning all required documents to the Committee within
the specified time period, that Employee shall commence participation in the
Plan on the date specified by the Committee. If a selected Employee fails to
meet all such requirements within the period required, in accordance with
Section 2.2 that Employee shall not be eligible to participate in the Plan until
the completion of those requirements.

ARTICLE III.

BENEFITS

3.1.          NORMAL
BENEFIT. A Participant who experiences a Termination of Employment shall
receive, as his or her Normal Benefit, a SERP Benefit which shall commence on
the first day of the month following the date he or she Terminates Employment.
The benefit shall be payable in the form set forth in Article 4.

3.2.          CHANGE
IN CONTROL BENEFIT. If a Change in Control occurs, the Participant shall receive,
as his or her Change in Control Benefit, a SERP Benefit. The Participant will
receive his or her Change in Control Benefit in the form of a Lump Sum. The
Lump Sum payment will be made on the first day of the month coinciding with or
next following the date on which the Change in Control occurs.

3.3.          DEATH
PRIOR TO THE COMMENCEMENT OF BENEFITS. If a Participant dies prior to the
commencement of his or her benefits, then his or her Beneficiary shall receive,
as a Death Benefit, a Lump Sum computed as if the Participant experienced a
Termination of Employment on the date of his or her death. The Lump Sum payment
shall be made to the Participant’s Beneficiary on the first day of the month
coinciding with or next following the date of the Participant’s death.

 8
 

3.4.          DEATH
AFTER THE COMMENCEMENT OF BENEFITS. Upon the death of a Participant after his
or her SERP Benefits commence, the Form in which such Participant’s benefit is
paid shall determine (i) the amount, if any; and (ii) the Form of the Death
Benefit payable, to such Participant’s Beneficiary.

3.5.          LIMITATION
ON BENEFITS. Notwithstanding the foregoing provisions of this Article 3, in no
event shall a Participant or his or her Beneficiary receive more than one Form
of benefit under this Article 3.

3.6.          WITHHOLDING
AND PAYROLL TAXES. The Participant’s Employer shall withhold from any and all
benefits made under this Article 3, all federal, state and local income,
employment and other taxes required to be withheld by such Participant’s
Employer in connection with the benefits hereunder, in amounts to be determined
in the sole discretion of the Employer.

ARTICLE IV.

FORMS OF BENEFIT
PAYMENT

4.1.          NORMAL
FORMS OF BENEFIT. A Participant who is entitled to receive a SERP Benefit as a
Normal Benefit will receive such benefits in the Form of a Life Annuity.

4.2.          OPTIONAL
FORMS OF BENEFIT. A Participant may elect to receive his or her Normal Benefit
in a form other than a Life Annuity or a Lump Sum, as the case may be. A
Participant may elect to receive his or her Normal Benefit in the form of (i) a
10 Year Term Certain and Life Annuity, (ii) a Life Annuity, or (iii) a Lump
Sum; provided, however, that if such form is other than a Life Annuity, the
Participant’s SERP Benefit will be increased or decreased, as the case may be,
to be a benefit which is the Actuarial Equivalent and which reflects the actual
form of benefit payment elected by the Participant pursuant to this Section
4.2. A Participant may make such an election by submitting an Election Form to the
Committee; provided, however, that in order for the Election Form to be valid,
it must be both submitted to and accepted by the Committee in its sole
discretion at least thirteen (13) months prior to the Participant’s Termination
of Employment. The Election Form most recently accepted by the Committee shall
govern the payout of the Participant’s Normal Benefit.

4.3.          AUTOMATIC
LUMP SUM BENEFIT. If a Participant or his or her Beneficiary becomes eligible
to receive a distribution under this Plan or is currently receiving
distributions from the Plan, and the value of the remaining unpaid benefit is
less than $5,000 when expressed on an Actuarial Equivalent basis as a lump sum,
the Committee, in its sole discretion, may pay the remaining unpaid benefit in
a lump sum, despite any elections the Participant may have made regarding the
form of benefit payments.

 9
 

ARTICLE V.

TERMINATION,
AMENDMENT OR MODIFICATION OF THE PLAN

5.1.          TERMINATION.
Each Employer reserves the right to terminate the Plan at any time with respect
to its participating Employees by the actions of its Board. The termination of
the Plan shall not adversely affect any Participant or his or her Beneficiary
who has become entitled to the payment of any benefits under the Plan as of the
date of termination; provided, however, that the Employer shall have the right
to accelerate payments by paying the Actuarial Equivalent value of such
payments. For all other Participants, upon the termination of the Plan, all
Plan Agreements shall terminate and the Actuarial Equivalent of a Participant’s
SERP Benefit shall be paid out in a Lump Sum. For this purpose, each covered
Participant shall be deemed to have Terminated Employment on the date of the
Plan’s Termination Date, and his or her SERP benefit shall be calculated as of
such Termination Date.

5.2.          AMENDMENT.
Any Employer may, at any time, amend or modify the Plan in whole or in part
with respect to its participating Employees by the actions of its board of
directors; provided, however, that no amendment or modification shall be
effective to decrease or restrict a Participant’s then SERP Benefit, determined
on an Actuarial Equivalent basis. The amendment or modification of the Plan
shall not affect any Participant or his or her Beneficiary who has become
entitled to the payment of benefits under the Plan as of the date of the
amendment or modification; provided, however, that the Employer shall have the
right to accelerate payments by paying the Actuarial Equivalent value of such payments
in a Lump Sum.

5.3.          PLAN
AGREEMENT. Despite the provisions of Sections 5.1 and 5.2 above, if a
Participant’s Plan Agreement contains benefits or limitations that are not in
this Plan document, the Employer may only amend or terminate such provisions
with the written consent of the Participant.

5.4.          EFFECT
OF PAYMENT. Absent the earlier termination, modification or amendment of the
Plan, the full payment of the applicable benefit as provided under Articles 3
and 4 of the Plan shall completely discharge all obligations to a Participant
and his or her designated Beneficiaries under this Plan and the Participant’s
Plan Agreement shall terminate.

ARTICLE VI.

OTHER BENEFITS AND
AGREEMENTS

6.1.          COORDINATION
WITH OTHER BENEFITS. The benefits provided for a Participant under this Plan
are in addition to any other benefits available to such Participant under any
other plan or program for Employees. The Plan shall supplement and shall not
supersede, modify or amend any other such plan or program except as may
otherwise be expressly provided.

 10
 

ARTICLE VII.

ADMINISTRATION OF
THE PLAN

7.1.          COMMITTEE
DUTIES. This Plan shall be administered by the Compensation Committee of the
Board, or such designees as the Board shall appoint. Members of the Committee
may be Participants under this Plan. The Committee shall also have the
discretion and authority to (i) make, amend, interpret and enforce all
appropriate rules and regulations for the administration of the Plan and (ii)
decide or resolve any and all questions including interpretations of the Plan,
as may arise in connection with the Plan. Any individual serving on the
Committee who is a Participant shall not vote or act on any matter relating
solely to himself or herself. When making a determination or calculation, the Committee
shall be entitled to rely on information furnished by a Participant or the
Company.

7.2.          AGENTS.
In the administration of this Plan, the Committee may, from time to time,
employ agents and delegate to them such administrative duties as it sees fit
(including acting through a duly appointed representative) and may from time to
time consult with counsel who may be counsel to any Employer.

7.3.          BINDING
EFFECT OF DECISIONS. The decision or action of the Committee with respect to
any question arising out of or in connection with the administration,
interpretation and application of the Plan and the rules and regulations
promulgated hereunder subject to the review of the Board, which shall then be
final and conclusive and binding upon persons having any interest in the Plan.

7.4.          INDEMNITY
OF COMMITTEE. All Employers shall indemnify and hold harmless the members of
the Committee against any and all claims, losses, damages, expenses or
liabilities arising from any action or failure to act with respect to this
Plan, except in the case of willful misconduct by the Committee or any of its
members.

7.5.          EMPLOYER
INFORMATION. To enable the Committee to perform its functions, each Employer
shall supply full and timely information to the Committee on all matters
relating to the compensation of its Participants, the date and circumstances of
the death or Termination of Employment of its Participants and such other
pertinent information as the Committee may reasonably require.

ARTICLE VIII.

CLAIMS PROCEDURES

8.1.          PRESENTATION
OF CLAIM. Any Participant or the Beneficiary of a deceased Participant (such
Participant or Beneficiary being referred to below as a “Claimant”) may deliver
to the Committee a written claim for a determination with respect to the
amounts distributable to such Claimant from the Plan. If such a claim relates
to the contents of a

 11
 

notice received by the Claimant, the claim must be made within sixty (60)
days after such notice was received by the Claimant. All other claims must be
made within 180 days of the date on which the event that caused the claim to
arise occurred. The claim must state with particularity the determination
desired by the Claimant.

8.2.          NOTIFICATION
OF DECISION. The Committee shall consider a Claimant’s claim within a
reasonable time, but no later than ninety (90) days after receiving the claim.
If the Committee determines that special circumstances require an extension of
time for processing the claim, written notice of the extension shall be
furnished to the Claimant prior to the termination of the initial ninety (90)
day period. In no event shall such extension exceed a period of ninety (90)
days from the end of the initial period. The extension notice shall indicate
the special circumstances requiring an extension of time and the date by which
the Committee expects to render a benefit determination. The Committee shall notify
the Claimant in writing:

(a)           that
the Claimant’s requested determination has been made, and that the claim has
been allowed in full; or

(b)           that
the Committee has reached a conclusion contrary, in whole or in part, to the
Claimant’s requested determination, and such notice must set forth in a manner
calculated to be understood by the Claimant:

(i)            the
specific reason(s) for the denial of the claim, or any part of it;

(ii)           specific
reference(s) to pertinent provisions of the Plan upon which such denial was
based;

(iii)          a description of any additional material or
information necessary for the Claimant to perfect the claim, and an explanation
of why such material or information is necessary;

(iv)          an
explanation of the claim review procedure set forth in Section 8.3 below; and

(v)           a
statement of the Claimant’s right to bring a civil action under ERISA Section
502(a) following an adverse benefit determination on review.

8.3.          REVIEW
OF A DENIED CLAIM. On or before sixty (60) days after receiving a notice from
the Committee that a claim has been denied, in whole or in part, a Claimant (or
the Claimant’s duly authorized representative) may file with the Committee a
written request for a review of the denial of the claim. The Claimant (or the
Claimant’s duly authorized representative):

 12
 

(a)           may,
upon request and free of charge, have reasonable access to, and copies of, all
documents, records and other information relevant to the claim for benefits;

(b)           may
submit written comments or other documents; and/or

(c)           may
request a hearing, which the Committee, in its sole discretion, may grant.

8.4.          DECISION
ON REVIEW. The Committee shall render its decision on review promptly, and no
later than sixty (60) days after the Committee receives the Claimant’s written
request for a review of the denial of the claim. If the Committee determines
that special circumstances require an extension of time for processing the
claim, written notice of the extension shall be furnished to the Claimant prior
to the termination of the initial sixty (60) day period. In no event shall such
extension exceed a period of sixty (60) days from the end of the initial
period. The extension notice shall indicate the special circumstances requiring
an extension of time and the date by which the Committee expects to render the
benefit determination. In rendering its decision, the Committee shall take into
account all comments, documents, records and other information submitted by the
Claimant relating to the claim, without regard to whether such information was
submitted or considered in the initial benefit determination. The decision must
be written in a manner calculated to be understood by the Claimant, and it must
contain:

(a)           specific
reasons for the decision;

(b)           specific
reference(s) to the pertinent Plan provisions upon which the decision was
based;

(c)           a
statement that the Claimant is entitled to receive, upon request and free of
charge, reasonable access to and copies of, all documents, records and other
information relevant (as defined in applicable ERISA regulations) to the
Claimant’s claim for benefits; and

(d)           a
statement of the Claimant’s right to bring a civil action under ERISA Section
502(a).

8.5.          LEGAL
ACTION. A Claimant’s compliance with the foregoing provisions of this Article 8
is a mandatory prerequisite to a Claimant’s right to commence any legal action
with respect to any claim for benefits under this Plan. In any event, a
Participant or his or her Beneficiary must bring a lawsuit within 180 days
after final resolution of a claim or forfeit any and all rights with respect to
such claim.

 13
 

ARTICLE IX.

BENEFICIARY
DESIGNATION

9.1.          BENEFICIARY.
Each Participant shall have the right, at any time, to designate his or her
Beneficiary(ies) (both primary as well as contingent) to receive any Death
Benefits payable under the Plan to the Participant’s Beneficiary upon the death
of a Participant. The Beneficiary designated under this Plan may be the same as
or different from the Beneficiary designation under any other plan of an
Employer in which the Participant has an interest .

9.2.          BENEFICIARY
DESIGNATION; CHANGE. A Participant shall designate his or her Beneficiary by
completing and signing the Beneficiary Designation Form and returning it to the
Committee or its designated agent. A Participant shall have the right to change
a Beneficiary by completing, signing and otherwise complying with the terms of
the Beneficiary Designation Form and the Committee’s rules and procedures, as
in effect from time to time. Upon the acceptance by the Committee of a new Beneficiary
Designation Form, all Beneficiary designations previously filed shall be
cancelled. The Committee shall be entitled to rely on the last Beneficiary
Designation Form filed by the Participant and accepted by the Committee prior
to his or her death.

9.3.          ACKNOWLEDGMENT.
No designation or change in designation of a Beneficiary shall be effective
until received, accepted and acknowledged in writing by the Committee or its
designated agent.

9.4.          NO
BENEFICIARY DESIGNATION. If a Participant fails to designate a Beneficiary as
provided in Sections 9.1, 9.2, and 9.3 above, or if all designated
Beneficiaries predecease the Participant or die prior to complete distribution
of the Participant’s benefits, the benefits remaining under the Plan shall be
payable to the executor or personal representative of the Participant’s estate.

9.5.          DOUBT
AS TO BENEFICIARY. If the Committee has any doubt as to the proper Beneficiary
to receive payments pursuant to this Plan, the Committee shall have the right,
exercisable in its discretion, to cause the Participant’s Employer to withhold
such payments until this matter is resolved to the Committee’s satisfaction.

9.6.          DISCHARGE
OF OBLIGATIONS. The payment of benefits under the Plan to a Beneficiary shall
fully and completely discharge all Employers and the Committee from all further
obligations under the Plan with respect to the Participant, and that
Participant’s Plan Agreement shall terminate upon such full payment of
benefits.

 14
 

ARTICLE X.

TRUST

10.1.        ESTABLISHMENT OF THE TRUST. In order to provide
assets from which to fulfill the obligations of the Participants and their
Beneficiaries under the Plan, the Company may establish a Trust by a trust
agreement with a third party. Each Employer may, in its discretion, contribute cash
or other property, including securities issued by the Company, to the Trust in
order to provide for the benefit payments under the Plan.

10.2.        INTERRELATIONSHIP OF THE PLAN AND THE TRUST.
The provisions of the Plan and the Plan Agreement shall govern the rights of a
Participant to receive distributions pursuant to the Plan. The provisions of
the Trust, if any, shall govern the rights of the Employers, Participants and
the creditors of the Employers to the assets transferred to the Trust. Each Employer
shall at all times remain liable to carry out its obligations under the Plan.

10.3.        DISTRIBUTIONS FROM THE TRUST. Each Employer’s
obligations under the Plan may be satisfied with Trust assets distributed
pursuant to the terms of the Trust, if any, and any such distribution shall
reduce the Employer’s obligations under this Agreement.

ARTICLE XI.

MISCELLANEOUS

11.1.        STATUS OF THE PLAN. The Plan is intended to be
a plan that is not qualified within the meaning of Code Section 401 (a) and
that is unfunded and is maintained by an employer primarily for the purpose of providing
deferred compensation for a select group of management or highly compensated
employees within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1).
The Plan shall be administered and interpreted to the extent possible in a
manner consistent with that intent.

11.2.        UNSECURED GENERAL CREDITOR. Participants, their
Beneficiaries, heirs, successors and assigns shall have no legal or equitable
rights, interests or claims in any property or assets of an Employer. For purposes
of the payment of benefits under this Plan, any and all of an Employer’s assets
shall be, and remain, the general, unpledged unrestricted assets of the
Employer. An Employer’s obligation under the Plan shall be merely that of an
unfunded and unsecured promise to pay money in the future.

11.3.        EMPLOYER’S LIABILITY. An Employer’s liability
for the payment of benefits shall be defined only by the Plan and the Plan Agreement,
as entered into between the Employer and a Participant. An Employer shall have
no obligation to a Participant under the Plan except as expressly provided in
the Plan and his or her Plan Agreement.

11.4.        NONASSIGNABILITY. Neither a Participant nor any
other person shall have any right to commute, sell, assign, transfer, pledge,
anticipate, mortgage or otherwise encumber,

 15
 

transfer, hypothecate, alienate or convey in advance of actual receipt,
the amounts, if any, payable hereunder, or any part thereof, which are, and all
rights to which are, expressly declared to be, unassignable and non-transferable.
No part of the amounts payable shall, prior to actual payment, be subject to
seizure, attachment, garnishment or sequestration for the payment of any debts,
judgments, alimony or separate maintenance owed by a Participant or any other
person, be transferable by operation of law in the event of a Participant’s or
any other person’s bankruptcy or insolvency or be transferable to a spouse as a
result of a property settlement or otherwise.

11.5.        NOT A CONTRACT OF EMPLOYMENT. The terms and
conditions of this Plan shall not be deemed to constitute a contract of
employment between any Employer and the Participant. Such employment is hereby
acknowledged to be an “at will” employment relationship that can be terminated
at any time for any reason, or no reason, with or without cause, and with or without
notice, unless expressly provided in a written employment agreement. Nothing in
this Plan shall be deemed to give a Participant the right to be retained in the
service of any Employer or to interfere with the right of any Employer to
discipline or discharge the Participant at any time.

11.6.        FURNISHING INFORMATION. A Participant or his or
her Beneficiary will cooperate with the Committee by furnishing any and all
information requested by the Committee and take such other actions as may be requested
in order to facilitate the administration of the Plan and the payments of
benefits hereunder.

11.7.        TERMS. Whenever any words are used herein in
the masculine, they shall be construed as though they were in the feminine in
all cases where they would so apply; and wherever any words are used herein in
the singular or in the plural, they shall be construed as though they were used
in the plural or the singular, as the case may be, in all cases where they would
so apply.

11.8.        CAPTIONS. The captions of the articles,
sections and paragraphs of this Plan are for convenience only and shall not
control or affect the meaning or construction of any of its provisions.

11.9.        GOVERNING LAW. Subject to ERISA, the provisions
of this Plan shall be construed and interpreted according to the internal laws
of the State of Indiana without regard to its conflict of laws principles.

11.10.      NOTICE. Any notice or filing required or
permitted to be given to the Committee under this Plan shall be sufficient if
in writing and hand-delivered, or sent by registered or certified mail, to both
of the addresses below:

	
  

  	
  Jean Neel

  	
   

  	
  WITH A CARBON COPY TO:

  
	
   

  	
  Vice President, Corporate Affairs

  	
   

  	
  Compensation Committee, Board of Directors

  
	
   

  	
  Haynes International, Inc.

  	
   

  	
  Haynes International, Inc.

  
	
   

  	
  1020 Park Avenue

  	
   

  	
  1020 Park Avenue

  
	
   

  	
  Kokomo, Indiana 46904

  	
   

  	
  Kokomo, Indiana 46904

  
						

 

 16
 

Such notice shall be deemed given as of the date of delivery or, if delivery
is made by mail, as of the date shown on the postmark on the receipt for
registration or certification. Any notice or filing required or permitted to be
given to a Participant under this Plan shall be sufficient if in writing and
hand-delivered, or sent by mail, to the last known address of the Participant.

11.11.      SUCCESSORS. The provisions of this Plan shall
bind and inure to the benefit of the Participant’s Employer and its successors
and assigns and the Participant and the Participant’s Beneficiary.

11.12.      SPOUSE’S INTEREST. The interest in the benefits
hereunder of a spouse of a Participant who has predeceased the Participant
shall automatically pass to the Participant and shall not be transferable by
such spouse in any manner, including but not limited to such spouse’s will, nor
shall such interest pass under the laws of intestate succession.

11.13.      VALIDITY. In case any provision of this Plan
shall be illegal or invalid for any reason, said illegality or invalidity shall
not affect the remaining parts hereof, but this Plan shall be construed and
enforced as if such illegal and invalid provision had never been inserted
herein.

11.14.      INCOMPETENT. If the Committee determines in its
discretion that a benefit under this Plan is to be paid to a minor, a person
declared incompetent or to a person incapable of handling the disposition of
that person’s property, the Committee may direct payment of such benefit to the
guardian, legal representative or person having the care and custody of such
minor, incompetent or incapable person. The Committee may require proof of
minority, incompetency, incapacity or guardianship as it may deem appropriate
prior to distribution of the benefit. Any payment of a benefit shall be a
payment for the account of the Participant and the Participant’s Beneficiary,
as the case may be, and shall be a complete discharge of any liability under
the Plan for such payment amount.

11.15.      COURT ORDER. The Committee is authorized to make
any payments directed by court order in any action in which the Plan or
Committee has been named as a party. In addition, if a court determines that a
spouse or former spouse of a Participant has an interest in the Participant’s benefits
under the Plan in connection with a property settlement or otherwise, the
Committee, in its sole discretion, shall have the right, notwithstanding any
election made by a Participant, to immediately distribute the spouse’s or
former spouse’s interest in the Participant’s benefits under the Plan to that
spouse or former spouse.

 17
 

11.16.      DISTRIBUTION IN THE EVENT OF TAXATION. If, for
any reason, all or any portion of a Participant’s benefit under this Plan
becomes taxable to the Participant prior to receipt, a Participant may petition
the Committee for a distribution of that portion of his or her benefit that has
become taxable. Upon the grant of such a petition, which shall not be
unreasonably withheld, a Participant’s Employer shall distribute to the
Participant immediately available funds in an amount equal to the taxable
portion of his or her benefit (which amount shall not exceed a Participant’s
unpaid SERP Benefit under the Plan). If the petition is granted, the
distribution shall be made within ninety (90) days of the date when the
Participant’s petition is granted. Such a distribution shall affect and reduce
the benefits to be paid under this Plan.

IN WITNESS WHEREOF, FRANCIS PETRO has signed this Plan
document on December 13, 2002.

	
  

  	
  “Company”

  
	
   

  
	
   

  	
  Haynes International, Inc., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ FRANCIS J. PETRO

  
	
   

  	
   

  
	
   

  	
  Title: 

  	
  PRESIDENT & CEO

  

 

 18

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