EXHIBIT 10.1

[INTERMET LOGO]
5445 Corporate Drive
Troy, Michigan 48098-2683
Phone: (248) 952-2500
Fax: (248) 952-1512
www.intermet.com

Intermet Corporation
Employee Retention Plan

Effective: September 20, 2004

INTERMET CORPORATION EMPLOYEE RETENTION PLAN

1. PURPOSE AND EFFECTIVE DATE. This program, effective as of September 20,
2004 (the "Effective Date"), shall be known as the Intermet Corporation Employee
Retention Plan ("Plan"). It is a discretionary retention bonus program for the
benefit of a select group of employees ("Participants") of Intermet Corporation
and its subsidiaries ("Intermet") who are selected for participation by
Intermet's Board of Directors ("Board"). This Plan is intended to qualify as a
compensation or bonus plan that is exempt from the application of the Employee
Retirement Income Security Act of 1974, as amended, by reason of Section 3 of
such Act.

2. DEFINITIONS. In this Plan, the following terms shall have the meanings
ascribed to them:

a. "BANKRUPTCY FILING" shall mean (i) a voluntary case filed on behalf of
Intermet Corporation or any of its subsidiaries pursuant to 11 USC Section 101,
et. seq. (the "Bankruptcy Code"); (ii) an involuntary case filed against
Intermet Corporation or any of its subsidiaries pursuant to the Bankruptcy Code
to the extent such involuntary case has not been dismissed within 60 days of its
filing; (iii) a comparable case or proceeding seeking reorganization or
restructure of Intermet or its subsidiaries pursuant to applicable state
statutory or common law; (iv) a bankruptcy, reorganization or other comparable
case or proceeding seeking reorganization or restructure of Intermet or its
subsidiaries in any foreign jurisdiction; or (v) an involuntary case or
proceeding filed against Intermet or its subsidiaries in any foreign
jurisdiction to the extent such involuntary case has not been dismissed within
60 days of its filing.

b. "BASE SALARY" shall mean such Participant's annual base salary as in
effect on the Effective Date and with respect to any Participant who may be
added after the Effective Date, such Participant's annual base salary at the
date such Participant is added.

c. "BOARD" shall mean the board of directors of Intermet Corporation or a
committee of such board authorized to act in the circumstances.

d. "CAUSE" shall mean (1) the Participant's committing any felony or
other crime involving dishonesty, (2) any serious misconduct in the course of
the Participant's employment or (3) the Participant's habitual neglect of the
Participant's duties (other than on the account of Disability), except that
Cause shall not mean (i) bad judgment or negligence other than habitual neglect
of duty, (ii) any act or omission believed by the Participant in good faith to
have been in or not opposed to the interest of Intermet (without intent of the
Participant to gain therefrom, directly or indirectly, a profit to which the
Participant was not legally entitled) or any act or omission with respect to
which a determination could properly have been made that the Participant met the
applicable standard of conduct for indemnification or reimbursement under any
applicable by-laws, any applicable indemnification agreement or the laws and
regulations under which Intermet is governed, in each case in effect at the time
of such act or omission.

e. "DISABILITY" means any medically determinable physical or mental
impairment that can be expected to last for a continuous period of not less than
six months, and that renders the Participant unable to perform the duties of his
or her position with Intermet. The date of the determination of Disability is
the date on which the Participant is certified as having incurred a Disability
by a physician acceptable to Intermet.

f. "GOOD REASON" with respect to any Participant shall mean the
occurrence of any one of the following events: (1) assignment to the Participant
of any duties materially inconsistent with the Participant's current position
(or such other position to which he or she may have been promoted), or any other
action that results in a material and adverse change in the Participant's
position, status, title or responsibilities, (2) the failure of Intermet to
assign this Plan to a successor of Intermet, (3) any reduction in the
Participant's annual base salary as in effect on the Effective Date or (4) any
change that would require the Participant's place of employment to be located
outside a radius of 50 miles of the Participant's current place of employment,
if, in the case of any such event described by clause (1) through (4), Intermet
fails to cure the event within 30 days after written notice to the Board from
the Participant; provided, however, that if the event is intentional, knowing or
repeated, the Participant shall not be required to provide written notice or an
opportunity to cure.

g. "STAY BONUS" is an amount payable to a Participant in accordance with
the terms of this Plan.

3. ELIGIBILITY AND PARTICIPATION. Eligibility and participation shall be in
the sole discretion of the Board, and Intermet will notify those employees
selected by the Board to participate in this Plan. The Participants are divided
into three tiers, based on their positions within Intermet and the potential
Stay Bonus payable to them as described in paragraph 4.

4. STAY BONUS. This Plan is designed to encourage Participants to remain with
Intermet and perform in a satisfactory manner during a prescribed period that
begins on the Effective Date and ends on December 31, 2005 (the "Stay Bonus
Period"). The maximum Stay Bonus payable to Participants who remain for the
entire Stay Bonus Period is a specified percentage of Base Salary, which differs
depending on the Tier in which the Participant participates. Except as otherwise
indicated in this Plan, the Stay Bonus is earned and payable based on
satisfactory service throughout the Stay Bonus Period.

a. MAXIMUM STAY BONUS. The maximum Stay Bonus for each Tier is the
specified percentage of Base Salary as follows (each an "Applicable
Percentage"):

Percentage of Base Salary if Percentage of Base Salary if
Tier there is a Bankruptcy Filing there is no Bankruptcy Filing
---- ---------------------------- -----------------------------

Tier I 75% 93.75%
Tier II 50% 62.5%
Tier III 25% 31.25%

b. SERVICE REQUIREMENTS. Except as otherwise specified in this Plan, if
the Participant remains employed by Intermet for the entire Stay Bonus Period
and continues to satisfy all of the conditions for participation, such
Participant shall receive a Stay Bonus which shall be equal to the product of
(i) the Applicable Percentage multiplied by such Participant's Base Salary and
(ii) a fraction, the numerator being the number of days worked by the
Participant between September 20, 2004 and December 31, 2005, and the
denominator being the total number of regularly scheduled work days from and
including September 20, 2004 through December 31, 2005 (the "Work Fraction").
For purposes of calculating the Work Fraction, sick, vacation, PTO, and other
authorized work absences shall be considered to be days worked.

c. FORM AND TIME OF PAYMENT. The Stay Bonus payable to a Participant
shall be paid in a lump sum and shall be subject to payroll taxes and other
withholdings according to Intermet's standard payroll practices. The payment
shall be made not later than June 30, 2006.

d. DISCRETIONARY PAYMENTS. The Board, in its sole discretion, reserves
the right to select additional Participants who are not participants in this
Plan as of the Effective Date in order to obtain or retain their services and
avoid the disruption and cost of attrition among employees with critical
knowledge or skills.

5. TERMINATION OF PARTICIPATION

a. EVENTS. A Participant's participation in this Plan shall automatically
terminate, without notice to or consent by such Participant, upon the first to
occur of either of the following events with respect to such Participant:

1) termination of employment by Intermet for Cause, or

2) termination of employment by the Participant other than for
Good Reason.

b. EFFECT OF TERMINATION FOR CAUSE OR RESIGNATION WITHOUT GOOD REASON. In
the event a Participant's employment is terminated by Intermet for Cause or a
Participant terminates his or her employment with Intermet other than for Good
Reason, the Participant shall forfeit his or her entire right to any payment
under this Plan.

c. EFFECT OF OTHER EVENTS; PRO RATA PAYMENTS. A pro rata Stay Bonus will
be paid to the Participant, or to the Participant's estate or personal
representative, if the Participant's employment is terminated by Intermet other
than for Cause, if the Participant's employment is terminated by reason of death
or Disability or if the Participant terminates his employment with Intermet for
Good Reason. In any such case, the amount of the pro rata Stay Bonus payable to
the Participant shall be calculated as the product of (i) the Applicable
Percentage multiplied by (ii) the Participant's Base Salary multiplied by (iii)
the Work Fraction. In addition, Intermet, acting through the Board, may review
the payment to a Participant whose employment terminates due to death or
Disability and, in its discretion, may award a full (rather than pro rata) Stay
Bonus payment to such Participant giving consideration to the value contributed
both before and during the Stay Bonus Period.

6. BINDING AUTHORITY. Subject to the review and approval of the Board provided
herein, the decisions of Intermet shall be final and conclusive for all purposes
of this Plan and shall not be subject to any appeal or review.

7. SOURCE OF PAYMENTS. All Stay Bonus payments will be paid in cash from the
general funds of Intermet; no separate fund will be established. Intermet will,
however, undertake to obtain approval of this Plan by the Bankruptcy Court or
other court or tribunal of competent jurisdiction in the event that a Bankruptcy
Filing occurs before all Stay Bonuses earned under this Plan have been paid in
full.

8. AMENDMENT. This Plan may be amended by the Board at any time and without
notice to or the consent of Participants if and so long as the rights and
benefits of the Participants are not materially and adversely affected by such
amendment.

9. SEVERABILITY. If any term or condition of this Plan shall be invalid or
unenforceable, the remainder of this Plan shall not be affected thereby and
shall continue in effect and application to the full extent permitted by law.

10. NO EMPLOYMENT RIGHTS. Neither the establishment nor the terms of this Plan
shall be held or construed to confer upon any employee the right to a
continuation of employment by Intermet, nor constitute a contract of employment,
express or implied. Subject to any applicable employment agreement, Intermet
reserves the right to dismiss or otherwise deal with any employee, including the
Participants, to the same extent as though this Plan had not been adopted.
Nothing in this Plan is intended to alter the "at-will" status of Participants,
it being understood that, except to the extent otherwise expressly set forth to
the contrary in a written employment agreement, the employment of any
Participant can be terminated at any time by either Intermet or the employee
with or without notice, with or without cause.

11. TRANSFERABILITY OF RIGHTS. Intermet shall have the right to transfer its
obligations under this Plan, with respect to one or more Participants, to any
person, including any purchaser of all or any part of Intermet's business. No
Participant or spouse shall have any right to commute, encumber, transfer or
otherwise dispose of or alienate any present or future right or expectancy that
the Participant may have at any time to receive payments of benefits hereunder,
which benefits and the rights thereto are expressly declared to be
non-assignable and nontransferable, except to the extent required by law. Any
attempt by a Participant to transfer or assign a benefit or any rights granted
hereunder shall (after consideration of such facts as Intermet deems pertinent)
be grounds for terminating any rights of the Participant to any portion of this
Plan benefits not previously paid.

12. EXTENSION OF PLAN. Intermet, in the discretion of the Board, reserves the
right to extend the terms of this Plan for such additional periods as it deems
necessary to those members of its workforce that it deems necessary. The terms
and conditions under which additional Stay Bonuses may be awarded shall be
determined, if at all, upon this Plan's extension.

13. GOVERNING LAW. This Plan shall be construed, administered and enforced
according to the laws of the State of Michigan (without giving effect to
principles of conflicts of interest).

In witness whereof, this Plan has been adopted by Intermet Corporation
as of the Effective Date pursuant to authority granted by the Board.

INTERMET CORPORATION

By: /s/ Gary F. Ruff
Gary F. Ruff
Chairman and Chief Executive Officer

By: /s/ Richard A. Nawrocki
Richard A. Nawrocki
Lead Director