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                                                                    EXHIBIT 10.1

                                                              As adopted 7-23-97
                                                             and amended 6-28-00
                                                                     and 1-01-02

                               RYERSON TULL, INC.
                              ANNUAL INCENTIVE PLAN

1.       Purpose

         The purpose of the Ryerson Tull, Inc. Annual Incentive Plan (the
"Plan") is to promote the interests of Ryerson Tull, Inc. (the "Company") and
its stockholders by (i) attracting and retaining salaried employees of
outstanding ability; (ii) strengthening the Company's capability to develop,
maintain and direct a competent employee population; (iii) motivating salaried
employees, by means of performance-related incentives, to achieve financial
rewards; (iv) providing annual incentive compensation opportunities which are
competitive with those of other major corporations; and (v) enabling salaried
employees to participate in the growth and financial success of the Company.

2.       Definitions

         "Affiliate" means any corporation or other entity which is not a
Subsidiary but as to which the Company possesses a direct or indirect ownership
interest and has power to exercise management control.

         "Award" means an amount for an Award Period determined to be payable to
a Participant under the Plan.

         "Award Period" means such calendar quarters or calendar years as the
Committee may establish from time to time with respect to any applicable salary
grade designation, to any Corporate Unit or to a combination of these factors.

         "Award Schedule" means the schedule to be used for determining Awards
as established by the Committee and set forth in the Addendum to the Plan
applicable to the Corporate Unit covered thereby.

         "Code" means the Internal Revenue Code of 1986, as amended.

         "Committee" means the Compensation Committee of the Board of Directors
of the Company.

         "Corporate Unit" means the Company, Ryerson Tull West, Ryerson Tull
North, Ryerson Tull South, Ryerson Tull Coil Processing, Inland Industries de
Mexico, S.A. de C.V., Ryerson Tull Canada, Customer Solutions Team, and any
Affiliate, other Subsidiary or any division or group of the Company or any
Subsidiary designated as a Corporate Unit from time to time by the Committee of
the Company.

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         "Employee" means an employee eligible to be designated as a Participant
in the Plan.

         "Named Executive Officer" means a Participant who is one of the group
of "covered employees" as defined in the regulations promulgated under Section
162(m) of the Code.

         "Participant" means an Employee who is designated by the Committee to
be eligible to receive an Award under the Plan.

         "Performance-Based Exception" means the performance-based exception
from the deductibility limitations as set forth in Section 162(m) of the Code.

         "Subsidiary" means any corporation in which the Company possesses
directly or indirectly more than fifty percent (50%) of the total combined
voting power of all classes of its stock.

         "Target Award" means the percentage of a Participant's base salary
earnings or base annual salary for an Award Period as established by the
Committee pursuant to paragraph 6 of the Plan and set forth in the Addendum to
the Plan applicable to the Corporate Unit in which such Participant is employed.

         "Threshold" means the minimum financial performance (established by the
Committee and set forth in the Addendum to the Plan applicable to such Corporate
Unit) required by a Corporate Unit before an Award may be paid to a Participant
employed in such Corporate Unit.

3.       Administration

         The Plan shall be administered by the Committee. No member of the
Committee shall be eligible to receive an Award while serving on the Committee.
The Committee shall have the authority to interpret the Plan and to establish,
amend and rescind rules and regulations for the administration of the Plan, and
all such interpretations, rules and regulations shall be conclusive and binding
on all persons. In addition, the Committee may delegate to one or more senior
executive officers of the Company the right to administer the Plan as it
pertains to employees who are not officers of the Company or of any other
Corporate Unit. Subject to the provisions of paragraph 7 hereof, the Committee
may impose such conditions on participation in and Awards under the Plan as it
deems appropriate.

4.       Eligibility

         Except as otherwise provided by the Committee and subject to paragraph
9 hereof, all full-time salaried employees of a Corporate Unit as of the first
day and the last day of an Award Period are eligible to be designated as
Participants in the Plan for such Award Period; provided, however, that, with
respect to Award Periods that extend for at least one year, individuals who are
full-time salaried employees of a Corporate Unit on August 1 of the first year
of the Award Period and the last day of the Award Period shall also be eligible
to be designated as Participants in the Plan for such Award Period.
Notwithstanding the foregoing, the Committee may adopt criteria restricting the
number of full-time salaried employees of a Corporate Unit eligible to be
designated as Participants in the Plan for any Award Period, which criteria
shall be set forth in the Addendum to the Plan applicable to such Corporate
Unit.

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5.       Designation of Participants

         The Committee shall determine and designate from time to time those
Employees who shall be Participants. The designation of an Employee as a
Participant in the Plan for any Award period shall not bestow upon such Employee
any right to receive an Award for such Award Period or the right to be
designated as a Participant for any subsequent Award Period.

6.       Individual Award Opportunity

         For each Award Period, the Committee shall establish for each
Participant a Target Award, expressed as a percentage of his or her base salary
earnings or base annual salary for such Award Period, on the basis of his or her
salary grade designation.

7.       Determination of Awards

         Awards for each Award Period for Participants in each Corporate Unit
shall be determined in accordance with the Award Schedule established by the
Committee for such Corporate Unit. No Award shall be paid to any Participant in
a Corporate Unit for any Award Period in which the performance of such Corporate
Unit does not equal or exceed the Threshold applicable to such Corporate Unit.
The Award for each Participant in a Corporate Unit shall be his or her Target
Award multiplied by the Percent Attainment (determined in accordance with the
applicable Award Schedule), subject to the following:

         (a) Subject to paragraph 3 and the provisions of this paragraph 7, the
Committee may adjust such Award for individual performance on the basis of such
quantitative and qualitative performance measures and evaluations as it deems
appropriate.

         (b) The Committee may make such adjustments as it deems appropriate in
the case of any Participant whose salary grade designation has changed during
the applicable Award Period or who has been employed in more than one Corporate
Unit during an Award Period.

         (c) Unless and until the Committee proposes for stockholder vote a
change in the general performance measures set forth in this paragraph 7(c), the
attainment of which may determine the degree of payout with respect to Awards
under the Plan which are designed to qualify for the Performance-Based
Exception, the performance measure(s) to be used for purposes of such Awards
shall be chosen from among the following alternatives: return on operating
assets, operating profit, return on equity, net income, stock price, revenue
growth, expense management, inventory management, quality management, customer
service performance, shareholder return, gross margin management and market
share improvement. The Committee shall have the discretion to establish
performance goals based upon the foregoing performance measures and to adjust
such goals and the methodology used to measure the determination of the degree
of attainment of such goals; provided, however, that Awards under the Plan that
are intended to qualify for the Performance-Based Exception and that are issued
to or held by any Named Executive Officer may not be adjusted in a manner that
increases such Award. The Committee shall retain the discretion to adjust such
Awards in a manner that does not increase such Awards. Furthermore, the
Committee shall not make any adjustment to Awards under the Plan issued to or
held by any Named Executive Officer that are intended to comply with the
Performance-Based Exception if the result of such adjustment would be the

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disqualification of such Award under the Performance-Based Exception. In the
event that applicable laws change to permit the Committee greater discretion to
amend or replace the foregoing performance measures applicable to Awards to
Named Executive Officers without obtaining stockholder approval of such changes,
the Committee shall have sole discretion to make such changes without obtaining
such approval. In addition, in the event that the Committee determines that it
is advisable to grant Awards under the Plan to Named Executive Officers that may
not qualify for the Performance-Based Exception, the Committee may make such
grants upon any performance measures it deems appropriate with the understanding
that they may not satisfy the requirements of Section 162(m) of the Code.

         Notwithstanding any other provision of the Plan, in no event may a
Participant be paid an Award in any calendar year in excess of $2,000,000. No
segregation of any moneys or the creation of any trust or the making of any
special deposit shall be required in connection with any awards made or to be
made under the Plan.

8.       Payment of Awards

         Awards shall be paid in cash as soon as practicable after the end of
the Award Period for which the Award is made. If a Participant to whom an Award
has been made dies prior to the payment of the Award, such Award shall be
delivered to his or her legal representative or to such other person or persons
as shall be determined by the Chairman, the President, the Chief Executive
Officer or the Vice President-Human Resources of the Company. The Company or
other applicable Corporate Unit shall have the right to deduct from all Awards
payable under the Plan any taxes required by law to be withheld by the Company
or other Corporate Unit with respect thereto; provided, however, that to the
extent provided by the Committee, any payment under the Plan may be deferred and
to the extent deferred, may be credited with an interest or earnings factor as
determined by the Committee.

9.       Termination of Employment

         Except in the case of death, disability, normal retirement (determined
in accordance with the qualified retirement plans of the Corporation) or release
(determined in accordance with the Inland Steel Industries Severance Pay Plan
for Eligible Salaried Employees or any successor or substituted plan) or except
as provided in paragraph 10, a Participant must be an employee as of the end of
the Award Period in order to be eligible for an Award.

10.      Change of Control

         In the event of a Change of Control of the Company (as hereinafter
defined), the Plan shall remain in full force and effect for the remainder of
any Award Period (or, if longer, the remainder of the calendar year) during
which such Change of Control of the Company occurs, and each Participant shall
receive an Award for such Award Periods (or any Award Periods occurring in such
calendar year), at least equal to his or her Target Award pro rated to the date
on which the Participant ceases to be an Employee if such date occurs prior to
the last day of the applicable Award Period, regardless of whether or not Awards
would otherwise have been payable under the Plan for such Award Periods and
regardless of whether or not such Participant was an Employee at the end of any
such Award Period. A "Change of Control of the Company"

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shall be deemed to have occurred if there shall have been a change in the
composition of the Board of Directors of the Company such that a majority of the
Board of Directors shall have been members of the Board of Directors for less
than 24 months, unless the election of each new director who was not a director
at the beginning of the 24 month period was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the
beginning of such period.

11.      Transferability

         Any payment to which a Participant may be entitled under the Plan shall
be free from the control or interference of any creditor of such Participant and
shall not be subject to attachment or susceptible of anticipation or alienation.
The interest of a Participant shall not be transferable except by will or the
laws of descent and distribution.

12.      No Right to Participate; Employment

         Neither the adoption of the Plan nor any action of the Committee shall
be deemed to give any Employee any right to be designated as a Participant under
the Plan. Further, nothing contained in the Plan, nor any action by the
Committee or any other person hereunder, shall be deemed to confer upon any
Employee any right of continued employment with any Corporate Unit or to limit
or diminish in any way the right of any Corporate Unit to terminate his or her
employment at any time with or without cause.

13.      Nonexclusivity of the Plan

         This Plan is not intended to and shall not preclude the Board of
Directors of the Company from adopting or continuing such additional
compensation arrangements as it deems desirable for Participants under this
Plan, including any thrift, savings, investment, stock purchase, stock option,
profit sharing, pension, retirement, insurance or other incentive, compensation
or benefit plan or program.

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