Document:

<PAGE>

                                                                 Exhibit 10.1

                        FORM OF INDEMNIFICATION AGREEMENT

         RTI International Metal, Inc. has entered into an Indemnification
Agreement in the form attached with each of the individuals listed below,
effective as of the date set forth opposite such individual's name.

<TABLE>
<CAPTION>
               Name and Title                                                    Date
               --------------                                                    ----
<S>                                                                         <C>
Craig R. Andersson, Director                                                  May 6, 2005

Neil A. Armstong, Director                                                    May 6, 2005

Daniel I. Booker, Director                                                    May 6, 2005

Donald P. Fusilli, Jr., Director                                              May 6, 2005

Ronald L. Gallatin, Director                                                  May 6, 2005

Charles C. Gedeon, Director                                                   May 6, 2005

Robert M. Hernandez, Director                                                 May 6, 2005

Edith Holiday, Director                                                       May 6, 2005

James A. Williams, Director                                                August 7, 2005

Timothy G. Rupert, President, Chief Executive Officer and Director            May 6, 2005

John H. Odle, Executive Vice President and Director                           May 6, 2005

Gordon L. Berkstresser, Vice President and Controller                         May 6, 2005

Dawne S. Hickton, Vice President and General Counsel                          May 6, 2005

William T. Hull, Vice President and Chief Accounting Officer             November 9, 2005

Lawrence W. Jacobs                                                            May 6, 2005

</TABLE>

<PAGE>

                            INDEMNIFICATION AGREEMENT
                                     BETWEEN
                         RTI INTERNATIONAL METALS, INC.
                                       AND

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

         THIS AGREEMENT is made this ___ day of ______________, 20___ by and
between RTI International Metals, Inc., an Ohio corporation (the "Corporation"),
and ______________________, an individual and a director and/or officer of the
Corporation (the "Indemnitee").

                                    RECITALS

         WHEREAS, Indemnitee is either a member of the Board of Directors or an
officer of the Corporation, or both, and in such capacity is performing a
valuable service for the Corporation;

         WHEREAS, the Corporation has adopted a Code of Regulations (the "Code")
wherein Article IV Section 1 provides for the indemnification of the Board of
Directors and officers of the Corporation to the full extent permitted by law;

         WHEREAS, the Ohio General Corporation Law, as amended to date (the
"Ohio Statute") specifically provides in Section 1701.13(E)(6) that it is not
exclusive, and thereby contemplates that contracts may be entered into between
the Corporation and its directors and officers with respect to indemnification
of such persons;

         WHEREAS, developments with respect to the application, amendment and
enforcement of statutory and other indemnification provisions generally have
raised questions concerning the adequacy and reliability of the protection
afforded to directors and officers thereby; and

         WHEREAS, in order to resolve such questions and thereby induce
Indemnitee to continue to serve as a member of the Board of Directors of the
Corporation or an officer, or both, the Corporation has determined and agreed to
enter into this contract with Indemnitee;

                                    AGREEMENT

         NOW, THEREFORE, in consideration of Indemnitee's continued service with
the Corporation after the date hereof the parties agree as follows:

         1. D&O INSURANCE. The Corporation represents that it has directors and
officers liability insurance ("D&O Insurance").

         2. INDEMNITY. Subject only to the exclusions set forth in Section 3
hereof, the Corporation hereby further agrees to hold harmless and indemnify
Indemnitee against any and all expenses (including attorneys' fees), judgments,
fines and amounts paid in settlement actually and reasonably incurred by
Indemnitee (and any federal, state, local or foreign taxes imposed as

                                       2
<PAGE>

a result of the actual or deemed receipt of any payments under this Agreement)
in connection with any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative (including
an action by or in the right of the Corporation) to which Indemnitee is, was or
at any time becomes a party, or is threatened to be made a party, by reason of
the fact that Indemnitee is, was or at any time becomes a director or officer of
the Corporation, or is or was serving or at any time serves at the request of
the Corporation as a director, trustee, officer, employee, member, manager or
agent of another corporation, limited liability Corporation, partnership, joint
venture, trust or other enterprise to the fullest extent authorized and
permitted by the provisions of the Ohio Statute, or by any amendment thereof or
other statutory provisions authorizing or permitting such indemnification which
is adopted after the date hereof.

         3. LIMITATIONS ON INDEMNITY. No indemnity pursuant to Section 2 hereof
shall be paid by the Corporation:

                  (a) except to the extent the aggregate of losses to be
         indemnified hereunder exceed the amount of such losses for which the
         Indemnitee is indemnified either pursuant to Section 2 hereof or
         pursuant to any D&O Insurance purchased and maintained by the
         Corporation;

                  (b) in respect to remuneration paid to Indemnitee if it shall
         be determined by a final judgment or other final adjudication that such
         remuneration was in violation of law;

                  (c) on account of any suit in which judgment is rendered
         against an Indemnitee for an accounting of profits made from the
         purchase or sale by Indemnitee of securities of the Corporation
         pursuant to the provisions of Section 16(b) of the Securities Exchange
         Act of 1934 and amendments thereto or similar provisions of any
         federal, state or local statutory law;

                  (d) on account of Indemnitee's act or omission being finally
         adjudged to have involved an act or omission undertaken with deliberate
         intent to cause injury to the Corporation or undertaken with reckless
         disregard for the best interests of the Corporation; or

                  (e) if a final decision by a Court having jurisdiction in the
         matter shall determine that such indemnification is not lawful.

         4. ADVANCEMENT OF EXPENSES.

                  (a) As and to the extent provided in Section 1701.13 (E)(5)(a)
         of the Ohio Statute, the Corporation shall pay any expenses, including
         attorney's fees, incurred by Indemnitee in defending any action, suit,
         or proceeding, as they are incurred, in advance of the final
         disposition of the action, suit or proceeding provided that Indemnitee
         agrees to repay such amount if it is proved by clear and convincing
         evidence in a court of competent jurisdiction that his action or
         failure to act involved an act or omission undertaken with deliberate
         intent to cause injury to the Corporation or undertaken with reckless
         disregard for the Corporation, and the Indemnitee agrees to reasonably
         cooperate with the Corporation concerning such action, suit or
         proceeding.

                                       3
<PAGE>

                  (b) As and to the extent provided in Section 1701.13 (E)(5)(b)
         of the Ohio Statute, the Corporation shall pay any expenses, including
         attorney's fees, incurred by Indemnitee in defending any action, suit
         or proceeding as they are incurred, in advance of the final disposition
         of the action, suit, or proceeding based, in part, on the undertaking
         of Indemnitee set forth in Section 7 hereof, provided that such
         advancement by the Corporation is authorized by the Board of Directors
         of the Corporation in the specific case.

         5. CONTINUATION OF INDEMNITY. All agreements and obligations of the
Corporation contained herein shall continue during the period Indemnitee is a
director or officer of the Corporation (or is or was serving at the request of
the Corporation as a director, trustee, officer, employee, member, manager or
agent of another corporation, limited liability Corporation, partnership, joint
venture, trust or other enterprise) and shall continue thereafter so long as
Indemnitee shall be subject to any possible claim or threatened, pending or
completed action, suit or proceeding, whether civil, criminal or investigative,
by reason of the fact that Indemnitee was a director of the Corporation or
serving in any other capacity referred to herein.

         6. NOTIFICATION AND DEFENSE OF CLAIM. Promptly after receipt by
Indemnitee of notice of the commencement of any action, suit or proceeding,
Indemnitee will, if a claim in respect thereof is to be made against the
Corporation under this Agreement, notify the Corporation of the commencement
thereof; but the omission so to notify the Corporation will not relieve it from
any liability which it may have to Indemnitee otherwise than under this
Agreement. With respect to any such action, suit or proceeding as to which
Indemnitee notifies the Corporation of the commencement thereof:

                  (a) The Corporation will be entitled to participate therein at
         its own expense; and

                  (b) Except as otherwise provided below, to the extent that it
         may wish, the Corporation jointly with any other indemnifying party
         similarly notified will be entitled to assume the defense thereof, with
         counsel selected by the Corporation and reasonably satisfactory to
         Indemnitee. After notice from the Corporation to Indemnitee of its
         election so to assume the defense thereof, the Corporation will not be
         liable to Indemnitee under this Agreement for any legal or other
         expenses subsequently incurred by Indemnitee in connection with the
         defense thereof other than reasonable costs of investigation or as
         otherwise provided below. Indemnitee shall have the right to employ
         counsel in such action, suit or proceeding but the fees and expenses of
         such counsel incurred after notice from the Corporation of its
         assumption of the defense thereof shall be at the expense of Indemnitee
         unless (i) the employment of counsel by Indemnitee has been authorized
         by the Corporation, (ii) Indemnitee shall have reasonably concluded
         that there may be a conflict of interest between the Corporation and
         Indemnitee in the conduct of the defense of such action, or (iii) the
         Corporation shall not in fact have employed counsel to assume the
         defense of such action, in each of which cases the fees and expenses of
         counsel shall be at the expense of the Corporation. The Corporation
         shall not be entitled to assume the defense of any action, suit or
         proceeding brought by or on behalf of the Corporation or as to which
         Indemnitee shall have made the conclusion provided for in (ii) above.

                                       4
<PAGE>

                  (c) The Corporation shall not be liable to indemnify
         Indemnitee under this Agreement for any amounts paid in settlement of
         any action or claim effected without its written consent. The
         Corporation shall not settle in any manner which would impose any
         penalty or limitation on Indemnitee without Indemnitee's written
         consent. Neither the Corporation nor Indemnitee will unreasonably
         withhold their consent to any proposed settlement.

         7. REPAYMENT OF EXPENSES. Indemnitee agrees that Indemnitee will
reimburse the Corporation for all reasonable expenses paid by the Corporation in
defending any civil or criminal action, suit or proceeding against Indemnitee in
the event and only to the extent that it shall be ultimately determined that
Indemnitee is not entitled to be indemnified by the Corporation for such
expenses under the provisions of the Ohio Statute, the Code, this Agreement or
otherwise. Indemnitee shall, to the extent permitted by law, be indemnified for
all reasonable attorneys' fees incurred in defense or prosecution of a claim for
indemnification.

         8. CHANGE IN CONTROL/ESTABLISHMENT OF TRUST. In the event of a Change
in Control (as hereinafter defined) the Corporation shall, upon written request
by Indemnitee, create and fund a trust (the "Trust") for the benefit of
Indemnitee in an amount, determined by counsel selected by Indemnitee and
identified in the written request which counsel must: (i) under all applicable
law, regulation and standards of professional conduct, have no conflict of
interest by representing either the Corporation or Indemnitee, and (ii) be
reasonably satisfactory to the Corporation, to be an amount sufficient to
satisfy any and all claim for indemnity (including without limitation expenses)
by Indemnitee under this Agreement. The terms of the Trust shall provide that
(i) the Trust shall not be revoked or the principal thereof invaded without the
written consent of Indemnitee, (ii) the trustee shall advance, within ten
business days of a request by Indemnitee, any and all expenses to Indemnitee
(the Indemnitee hereby agrees to reimburse the Trust under the same
circumstances for which the Indemnitee would be required to reimburse the
Corporation under Sections 4(a) and 7 of this Agreement), (iii) the Trust shall
continue to be funded by the Corporation in accordance with the funding
obligation set forth above, (iv) the trustee shall promptly pay to Indemnitee
all amounts for which Indemnitee shall be entitled to indemnification pursuant
to this Agreement or otherwise, and (v) all unexpended funds in the Trust shall
revert to the Corporation upon a final determination by the independent counsel
or a court of competent jurisdiction, as the case may be, that Indemnitee has
been fully indemnified under the terms of this Agreement. The trustee shall be
chosen by the Indemnitee. Nothing in this Section 8 shall relieve the
Corporation of any of its obligations under this Agreement. All income earned on
the assets held in the Trust shall be reported as income by the Corporation for
federal, state, local and foreign tax purposes. The Corporation shall pay all
costs of establishing and maintaining the Trust and shall indemnify the trustee
against any and all expenses (including attorneys' fees), claims, liabilities,
loss, and damages arising out of or relating to this Agreement or the
establishment and maintenance of the Trust.

         For purposes of this Agreement, a Change in Control means a change in
control (other than one approved by a majority of the directors on the board of
the Corporation immediately prior to such Change in Control) of a nature that
would be required to be reported in response to Item 6(e) of Schedule 14A of
Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), whether or not the Corporation is then subject to such
reporting requirement; provided, that, without limitation, such a change in
control shall be deemed to have occurred if:

                                       5

<PAGE>

                  (1) Any person (within the meaning of that term as used in
         Sections 13(d) and 14(d) of the Exchange Act (a "Person"), is or
         becomes the "beneficial owner" (as defined in Rule 13d-3 under the
         Exchange Act), directly or indirectly, of securities of the Corporation
         representing twenty percent (20%) or more of the combined voting power
         of the Corporation's then outstanding voting securities; provided,
         however, that for purposes of this Plan the term "Person" shall not
         include (i) the Corporation or any of its majority-owned Subsidiaries,
         (ii) a trustee or other fiduciary holding securities under an employee
         benefit plan of the Corporation or any of its Subsidiaries, (iii) an
         underwriter temporarily holding securities pursuant to an offering of
         such securities, or (iv) a corporation owned, directly or indirectly,
         by the stockholders of the Corporation in substantially the same
         proportions as their ownership of stock of the Corporation; or

                  (2) A change in composition of the Board during any two year
         period such that the following individuals cease for any reason to
         constitute a majority of the number of directors then serving on the
         Board: individuals who, at the beginning of the two year period, are
         serving as directors on the Board and any new director (other than a
         director whose initial assumption of office is in connection with an
         actual or threatened election contest, including but not limited to a
         consent solicitation, relating to the election of directors of the
         Corporation) whose appointment or election by the Board or nomination
         for election by the Corporation's stockholders was approved by a vote
         of at least two-thirds (2/3) of the directors then still in office who
         either were directors at the beginning of the two year period or whose
         appointment, election or nomination for election was previously so
         approved, or

                  (3) There is consummated a merger or consolidation of the
         Corporation or a Subsidiary thereof, with any other corporation, other
         than a merger or consolidation which would result in the holders of the
         voting securities of the Corporation outstanding immediately prior
         thereto holding securities which represent immediately after such
         merger or consolidation at least 50% of the combined voting power of
         the voting securities of the entity surviving the merger or
         consolidation (or the Parent of such surviving entity), or the
         shareholders of the Corporation approve a plan of complete liquidation
         of the Corporation, or there is consummated the sale or other
         disposition of all or substantially all of the Corporation's assets.

         9. SUBROGATION. In the event of any payment under this Agreement, the
Corporation shall be subrogated to the extent thereof to all rights to
indemnification or reimbursement against any insurer or other entity or person
vested in the Indemnitee, who shall execute all instruments and take all other
actions as shall be reasonably necessary for the Corporation to enforce such
rights.

         10. ENFORCEMENT.

                  (a) The Corporation expressly confirms and agrees that it has
         entered into this Agreement and assumed the obligations imposed on the
         Corporation hereby in order to induce Indemnitee to continue as
         director or an officer of the Corporation, or both, and

                                       6
<PAGE>

         acknowledges that Indemnitee is relying upon this Agreement in
         continuing in such capacity.

                  (b) In the event Indemnitee is required to bring any action to
         enforce rights or to collect moneys due under this Agreement and is
         successful in such action, Corporation shall reimburse Indemnitee for
         all of Indemnitee's reasonable fees and expenses in bringing and
         pursuing such action.

         11. SEPARABILITY. Each of the provisions of this Agreement is a
separate and distinct agreement and independent of the others, so that if any
provision hereof shall be held to be invalid or unenforceable for any reason,
such invalidity or unenforceability shall not affect the validity or
enforceability of the other provisions hereof.

         12. GOVERNING LAW; BINDING EFFECT; AMENDMENT AND TERMINATION.

                  (a) This Agreement shall be interpreted and enforced in
         accordance with the laws of the State of Ohio.

                  (b) This Agreement shall be binding upon Indemnitee and upon
         the Corporation, its successors and assigns, and shall inure to the
         benefit of Indemnitee, his heirs, personal representatives and assigns
         and to the benefit of the Corporation, its successors and assigns.

                  (c) No amendment, modification, termination or cancellation of
         this Agreement shall be effective unless in writing signed by both
         parties hereto.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

                                            RTI INTERNATIONAL METALS, INC.

                                            By:
                                               --------------------------------
                                               [name of authorized officer]
                                               [title]

                                            By:
                                               --------------------------------
                                               [name], Indemnitee

Dated:  Effective                 , 20
                  ----------------    ---

                                       7<PAGE>
                                                                EXHIBIT 10.2

                      PAY PHILOSOPHY AND GUIDING PRINCIPLES
                        COVERING OFFICER COMPENSATION AT
                         RTI INTERNATIONAL METALS, INC.

           (As Amended by the Board of Directors on October 28, 2005)

SCOPE
The pay philosophy and guiding principles described herein are applicable to the
RTI International Metals, Inc. officer positions listed below, as well as any
other positions so designated by the Board of Directors:

                                OFFICER-DIRECTORS
                      President and Chief Executive Officer
                            Executive Vice President

                                    OFFICERS
                             Senior Vice Presidents
                                 Vice Presidents

OVERALL PHILOSOPHY

RTI's officer compensation programs are designed to:

o    promote achievement of the company's business objectives and reinforce its
     strategies

o    align the interests of the company's officers with those of RTI's
     shareholders

o    provide pay that is externally competitive and internally equitable, that
     rewards accomplishment to the extent identifiable and measurable and that
     delivers significant rewards for exceptional performance.

GUIDING PRINCIPLES

I.   Pay Program Characteristics. The Company's officer compensation programs
     will be managed to help communicate desired results and promote decisions
     and actions that produce these results. The programs will be characterized
     by:

<PAGE>

                                      -2-

         A.    Variability. A large portion of total compensation will be based
               on company performance, recognizing the highly cyclical nature of
               the business and the need to maintain conservative compensation
               levels during business downturns. While salaries will generally
               be maintained at competitive levels, the major opportunities for
               significant upward shifts in total compensation will be provided
               from short- and long-term incentive programs.

         B.    Clarity. Performance objectives for short- and long-term
               incentive programs, whether quantitative or qualitative, will be
               clearly articulated. Normally the objectives will be
               predetermined and the related performance evaluations will be
               straightforward - - with little need for after-the-fact
               discretionary judgment. However, the opportunity to apply such
               judgment, when deemed necessary by the Board, will be provided.

         C.    Communicability. Officers will be aware of and fully understand
               their earnings potential for a given year and what specific
               actions and results are necessary to achieve these earnings.
               Specific areas of communication will be:

               1.   The factors considered in determining salary levels and
                    increases.

               2.   Annual incentive target objectives and results.

               3.   Annual target levels for restricted stock vesting,
                    performance measures and results.

         D.    Strategic Emphasis. The development and administration of
               compensation programs will include recognition of the roles of
               various elements of pay in attracting, retaining and motivating
               employees, the aspects of performance that each element is best
               suited to reward and the characteristics of the company and its
               officer group that point to emphasis on specific elements of pay.

               The table below illustrates, for each officer position, the
               approximate proportion of total direct compensation to be
               represented by each element, assuming both short- and long-term
               incentives are paid at target levels:

<TABLE>
<CAPTION>
                                                                        Percent of Direct Compensation
                                                              ------------------------------------------------
                                                                                 Incentives
                                                                           -----------------------
                                                              Salary       Short Term    Long Term       Total
                                                              ------       ----------    ---------       -----
<S>                                                           <C>             <C>           <C>         <C>
               President and Chief Executive Officer            35              20            45          100
               Executive Vice President                         40              20            40          100
               Senior Vice Presidents                           40              20            40          100
               Vice Presidents                                  45              15            40          100
</TABLE>

<PAGE>

                                      -3-

II.      Pay Positioning and Delivery. Overall, direct compensation (salary,
         bonus and long-term incentives) for RTI's officer group should provide
         remuneration at about the comparator group (as described in Section
         III) average or median when all aspects of performance are at target
         levels, and at or above the comparator group when performance levels
         significantly exceed the target.

         A.    Salary Administration

               1.   Salary Structure. The midpoint of the salary range for each
                    position will be maintained near the median of that for
                    similar positions at appropriate comparator companies (as
                    described in Section III), with the maximum near the 75th
                    percentile of the comparator group. Midpoints will also be
                    monitored to ensure that each reflects the relative value of
                    the position compared with other RTI officer positions.

               2.   Salary. The major role of salary in rewarding performance
                    and accomplishment is the recognition of consistent
                    excellent performance over a number of years. Merit budgets,
                    as well as individual promotional increases, will reflect
                    such factors as general economic conditions, RTI's
                    performance and the availability of funds. An individual's
                    salary may fall anywhere in the range, up to and including
                    the maximum.

               3.   However, individual salary increase levels will reflect a
                    variety of factors, including relevant experience, time in
                    position and individual performance as measured in an annual
                    performance review.

         B.    Incentive Compensation

               1.   Annual Incentive Compensation. The major role of annual
                    incentive, or bonus, payments is to motivate employees
                    through the recognition of attainment of specific key
                    objectives and/or other strategic milestones or operational
                    goals. Awards for officer employees are paid under RTI's
                    Annual Incentive Compensation Plan. The Plan's award
                    opportunity guidelines for participants, shown below, will
                    be maintained near the median of that for similar positions
                    at appropriate comparator companies (as described in Section
                    III).

<TABLE>
<CAPTION>
                                                                        Percent of Salary
                                                                  ----------------------------
                                                                    Range               Target
                                                                  --------              ------
<S>                                                               <C>                   <C>
                    President and Chief Executive Officer         0 to 120                60
                    Executive Vice President                      0 to 100                50
                    Senior Vice Presidents                        0 to 100                50
                    Vice Presidents                               0 to  80                40
</TABLE>

<PAGE>

                                      -4-

                    The Board of Directors will approve a financial plan at the
                    first meeting of the year which will serve as the basis upon
                    which the awards are to be paid.

                    The Board may establish such individual performance
                    objectives for the year, as developed by management or by
                    the Board itself, which it deems relevant.

                    No award will be paid to participant whose performance is
                    judged to be unacceptable regardless of the level of
                    corporate performance. Likewise, the Board may pay one or
                    more awards to recognize exceptional individual performance
                    regardless of the level of corporate performance.

               2.   Long-Term Incentive Compensation. Opportunities for payouts
                    will be designed specifically to reward increases in
                    shareholder wealth, as measured by the price of RTI's common
                    stock and dividend levels, if any, as well as improvement in
                    earnings per share.

                    (A)  Grant Levels. The table below shows target award
                         levels, as a percent of salary, for officer positions:

<TABLE>
<CAPTION>
                                                                Target Range
                                                                 Long-Term              Target Split
                                                               Incentive Award,            Stock/
                                    Position                  Percent of Salary         Stock Options
                           --------------------------         -----------------         -------------
<S>                                                             <C>                      <C>
                           President and Chief
                               Executive Officer                  90 - 130                  80/20
                           Executive Vice President               80 - 120                  75/25
                           Senior Vice Presidents                 75 - 110                  75/25
                           Vice Presidents                        40 -  80                  70/30

</TABLE>

                    (B)  Grant Types and Valuation. Long-term incentive grants
                         will be made in a combination of stock and stock
                         options. Stock may be restricted shares, performance
                         shares, phantom stock or non-restricted shares. Stock
                         options may be traditional or nontraditional stock
                         options (exercise prices equal to an average over time
                         to mitigate volatility or indexed to external
                         benchmarks or performance contingent) and may be
                         granted with or without stock appreciation rights
                         settled in cash or shares, all, at the discretion of
                         the Human Resources Committee.

                         The total projected value of the combination grant for
                         each grantee will be roughly divided, as shown above,
                         between the two types of grants. The target split is
                         intended as rough guidance and the actual

<PAGE>

                                      -5-

                         split is left to the discretion of the Human Resources
                         Committee. Projected grant valuations may be based on
                         any generally accepted methodology, including
                         mathematical models, including the exercise of
                         judgment.

                    (C)  Grant Frequency. Unless otherwise determined by the
                         Stock Plan Committee, grants of stock and stock options
                         will be made annually. A stock grant may be a normal,
                         target-level grant or a "reload" grant that recognizes
                         above-target vesting.

                    (D)  Timing Considerations.

                         (1)  Restricted Stock. Unless otherwise determined by
                              the Stock Plan Committee, each grant of restricted
                              stock will be released from restrictions at a
                              minimum rate of 20 percent a year beginning the
                              year following the grant year. This rate may be
                              increased for any year, to a maximum of 25
                              percent, based on the actual percentage
                              improvement in average earnings per share, for the
                              last three consecutive years immediately preceding
                              the year in which the stock is being vested, over
                              the average for the three consecutive years ending
                              at the beginning of the year preceding the year in
                              which the stock is being vested.

                         (2)  Stock Options. Unless otherwise determined by the
                              Stock Plan Committee, stock options will vest in
                              equal installments over a three-year period
                              beginning one year following the date of grant.

III.     Comparative Data.

         A.    Data Selection Factors. Generally, because of the dearth of U. S.
               companies that compete directly with RTI and because managerial
               talent can be found in organizations other than directly
               competing companies, the compensation data selected for use in
               company and/or individual position comparisons will include
               information on a broad group of U. S. industrial companies
               similar to RTI. The primary determinant of similarity will be
               sales volume; however, when available, other measures of "size",
               such as assets, total capital, total market value, and number of
               employees, will also be included. When appropriate and available,
               data specific to the metals industry or a specific position will
               be used.

         B.    Sources of Comparative Data. Compensation data used in
               comparisons will be obtained from nationally recognized
               compensation consulting firms, such as William M. Mercer, Hay
               Management Consultants, Hewitt Associates,

<PAGE>

                                      -6-

               Towers Perrin, or such other sources as are approved by the
               Chairman of the Board of Directors.

IV.      Benefits. The objective in providing benefits for RTI's officers will
         be to deliver adequate benefits in the most effective way possible.

V.       Perquisites. Perquisites, which will not be emphasized, will be
         reviewed in their entirety by the Board of Directors from time to time.

VI.      Stock Ownership Guidelines. Each officer will be expected to maintain a
         meaningful equity position in the company's stock. The Board of
         Directors may establish target ownership levels for officers from time
         to time.

VII.     Capital Accumulation/Estate Planning. In designing and administering
         compensation programs, consideration will be given to provisions that
         accommodate the capital accumulation and estate planning objectives of
         officers.

VIII.    Tax/Legal/Accounting Factors. The restrictions imposed by taxing
         authorities, laws and required accounting treatments will be considered
         in the design and administration of compensation programs. These will
         be balanced by the desirability of preserving, to the degree possible,
         the Board's decision-making flexibility.

IX.      Decision-Making Authority. The Board of Directors will monitor and
         review officer compensation programs, in aggregate, to ensure
         consistency with the overall compensation philosophy and guiding
         principles. The Board will approve the salaries of the individuals
         holding the positions described herein as officers and will have
         authority, with respect to incentives and benefits, as is described in
         the relevant plan or program.

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