Document:

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                                                                   Exhibit 10.13

                           DEFERRED COMPENSATION PLAN
                          FOR NON-EMPLOYEE DIRECTORS OF
                      JOHN HANCOCK FINANCIAL SERVICES, INC.

                (As Amended and Restated as of December 2, 2002)

ARTICLE I

DEFERRAL OF COMPENSATION

1.1    PURPOSE AND ELIGIBILITY. This Deferred Compensation Plan for Non-Employee
Directors of John Hancock Financial Services, Inc. ("the Plan") is adopted in
order to allow each Eligible Director of John Hancock Financial Services, Inc.
("the Company") and John Hancock Life Insurance Company (the "Life Company") to
defer the receipt of part of his or her Compensation to some future date or
dates. The term Eligible Director shall mean any person serving on the Company's
or the Life Company's Board of Directors or any committee thereof who is not an
employee of the Company or the Life Company. An Eligible Director may
participate in the Plan by executing an Irrevocable Election as set forth below.
"Participant" shall refer to any Eligible Director who executes such an
Irrevocable Election.

1.2    IRREVOCABLE ELECTION.

       A.   Except as provided in Section 1.2(B), prior to the first day of each
calendar year in which Compensation is expected to be earned or awarded, each
Participant shall make an Irrevocable Election on a form provided by the Company
to receive such Compensation in cash or to defer payment until:

            1.   a specific date not less than five years from the date of
election, or

            2.   the calendar year next following the calendar year in which
occurs the termination of services as an Eligible Director for any reason.

       Except as provided in Section 3.3, all amounts deferred under this
Section shall be payable in the month of January (the "Payment Commencement
Date").

       B.   Any Eligible Director becoming eligible during a calendar year shall
make the Irrevocable Election described in 1.2(A) within 30 days of the date of
eligibility, on a form provided by the Company and such Irrevocable Election
shall be effective only as to Compensation earned after the effective date of
the election during the remainder of the year. Such an Eligible Director shall
make an Irrevocable Election for the ensuing calendar year and each calendar
year thereafter as set forth in Section 1.2(A).

       C.   Amounts deferred under the Plan and interest thereon, as described
in Article III, shall be credited to a Deferral Account established on behalf of
each Participant. Each Deferral Account shall be a mere bookkeeping account
subject to the provisions of Section 5.23.

       D.   Failure to file an Irrevocable Election shall be deemed to be an
election to receive all Compensation in the year earned.

1.3    COMPENSATION. Compensation shall consist of the cash portion of the
annual retainer and any committee chairman retainers and attendance fees (all of
which shall be determined from time to time by the Board of Directors or
Compensation Committee of the Company).

ARTICLE II

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DISTRIBUTION OF DEFERRED COMPENSATION

2.1    DISTRIBUTION OF DEFERRED COMPENSATION; WAIVER. A Participant may at any
time prior to the end of the calendar year that is at least 12 months prior to
the Payment Commencement Date, on a form provided by the Company, one of the
following methods of distribution:

                (A)   lump sum, or

                (B)   annual installments for a period specified by the
Participant, commencing on the Payment Commencement Date and terminating no
later than twenty (20) years from such date.

In the event a Participant fails to make this election, payment shall be made in
the form of a lump sum.

In addition, in lieu of the deferral options described above, a Participant may
irrevocably elect to waive the receipt of all or part of his or her Deferral
Account. An election to waive must be made, on a form and in a manner approved
by the Company, on or before the last day of the calendar year preceding the
year in which distribution is scheduled to occur. If so elected, the Participant
agrees to waive part or all of the his or her rights to his or her Deferral
Account in exchange for the purchase by the Company of a split dollar life
insurance policy insuring the life of the Participant or the joint lives of the
Participant and his or her spouse. Notwithstanding the Payment Commencement Date
selected by the Participant, the purchase by the Company of the split dollar
life insurance policy shall not occur until after the Participant terminates his
service as a Director of the Company. The form of the life insurance policy
shall be as mutually agreed to by the Participant and the Company. If the
Participant elects this waiver, all rights with respect to his or her Deferral
Account under the this plan shall cease and any survivor benefits shall be
governed by the terms of the split dollar life insurance policy purchased by the
Company under the waiver option.

2.2    BENEFICIARIES; PAYMENT ON DEATH. A Participant may designate on a form
provided by the Company a beneficiary or beneficiaries to receive upon the
Participant's death any unpaid amounts credited to the Participant's Deferral
Account. At any time, and from time to time, a Participant may change or revoke
his or her beneficiary designation without the consent of any beneficiary. Any
such designation, change or revocation must be made by executing a new
beneficiary designation form and filing such form with the Company. If the
Participant designates more than one beneficiary, any payments to beneficiaries
will be made in equal percentages unless the Participant designates otherwise.
Upon the Participant's death, any portion of the Participant's Deferral Account
that is not payable to a designated beneficiary will be paid to the
Participant's estate in the form of a lump sum.

2.3    PERMANENT DISABILITY. If a Participant becomes permanently disabled
before payment of all or any part of amounts credited to his or her Deferral
Account, the balance in such Deferral Account shall be paid in a lump sum as
soon as practicable after the occurrence of such disability, unless, in the sole
discretion of the Compensation Committee of the Company, the disabled individual
is allowed to make a new election regarding distribution under Section 2.1. The
determination of permanent disability for this purpose shall be made by a
medical doctor selected by the Policy Committee of the Company.

2.4    ACCELERATION OF PAYMENT. In the best interest of the financial integrity
and administration of the Plan, the Compensation Committee of the Company may at
any time accelerate the election made by a Participant as to a distribution
under the Plan with the result that a term of years may be shortened, or a lump
sum may be substituted for a term of years.

2.5    IMMEDIATE PAYMENT SUBJECT TO BENEFIT REDUCTION. If, under Section 2.1, a
Participant has previously elected to receive his Deferral Account in the form
of installment payments, such Participant may elect, at any time prior to his
Payment Commencement Date, to receive his or her Deferral Account in the form of
a lump sum payment, subject to a reduction in the amount of the Participant's
Deferral Account equal to 7%.

ARTICLE III

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INTEREST ON DEFERRAL ACCOUNT; DEFERRED STOCK UNITS

3.1    INTEREST ON DEFERRED COMPENSATION. Interest on deferred compensation
shall be credited on the basis of the rate of interest for ten-year Treasury
Constant Maturities. The determination of the interest rate to be credited and
the calculation of interest due under this Article shall be subject to the sole
discretion and authority of the Company. The Company shall be entitled to
establish rules and procedures to facilitate the calculations described herein.

3.2    ADDITIONS TO BALANCE OWING. The amount of interest added to the Deferral
Account in accordance with Section 3.1 above shall become part of the balance
owing to a Participant.

3.3    DEFERRED STOCK UNITS. Except to the extent that a Participant elects
installment options pursuant to section 2.1(B), in lieu of receiving interest on
his/her Deferred Compensation, a Participant who is an Eligible Director of the
Company may elect (in increments of 25%, 50%, 75%, or 100%) to invest his
Deferred Compensation in the form of deferred stock units of the Company.
Deferred stock units are not actual shares of stock and cannot be settled in or
surrendered for shares of stock. Instead, they are distinct investments
administered by the Company under this Plan that provide a return on the
deferred amount equal to the return that would occur if the deferred amount were
actually used to purchase shares of the Company's common stock ("JHFS Stock"),
including the immediate reinvestment of cash dividends when paid into shares of
JHFS Stock. Holders of deferred stock units have no voting rights or any
attributes of stock ownership other than such equivalent economic return. The
number of deferred stock units received by each Participant electing under this
paragraph upon each deferral shall be equal to the amount of each deferral
divided by the per share Fair Market Value (as then defined in the Company's
1999 Long-Term Stock Incentive Plan) of JHFS Stock on the effective date of the
deferral.

Notwithstanding Section 1.2, if the Payment Commencement Date under Section 1.2
occurs prior to the lapse of the restrictions on deferred stock units under the
terms of the Non-Employee Directors' Long-Term Stock Incentive Plan, then the
Payment Commencement Date with respect to the restricted stock units will not
occur until the month following the lapse of such restrictions, in the same form
elected under Section 2.1.

ARTICLE IV

HARDSHIP DISTRIBUTION PROVISIONS

4.1    HARDSHIP DISTRIBUTION. A hardship distribution may be paid from a
Deferral Account upon a finding by the Compensation Committee of the Company
that a Participant has incurred a Financial Hardship, as defined below. An
amount reasonably necessary to meet the Financial Hardship, up to 100% of a
Deferral Account, may be paid. The hardship distribution shall be made in a lump
sum payment. Applications for hardship distributions shall be made in writing.
The Compensation Committee shall issue a written determination with respect to
such application. Written proof of a Financial Hardship may be requested. The
Compensation Committee will also determine the date of payment for a hardship
distribution. A Participant's Deferral Account shall be reduced by the amount of
any hardship distribution.

       For purposes of this section, a Financial Hardship is any unforeseen,
unanticipated emergency caused by an event beyond the control of the Participant
which would result in severe financial hardship to the Participant if early
withdrawal were not permitted.

ARTICLE V

GENERAL

5.1    PLAN AMENDMENT AND TERMINATION. The Company's Board of Directors may
amend the Plan

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at any time and authorizes the Company's Senior Committee to make any changes of
a technical nature that it deems appropriate to carry out the terms of the Plan.
The Company's Board of Directors may terminate the Plan at any time. Upon
termination of the Plan, a Participant's Deferral Account shall be distributed
in accordance with Article II, subject to the Compensation Committee's right to
accelerate payment as provided in Section 2.4.

5.2    NO RIGHT TO CORPORATE ASSETS. The Plan is intended to be a non-qualified,
unfunded, deferred compensation plan. The Company will not be required to
reserve, segregate, or deposit any funds or assets of any kind to meet the
obligations hereunder. Nothing in this Plan will give a Participant, a
Participant's beneficiary or any other person any equity or other interest in
the assets of the Company, or create a trust of any kind or a fiduciary
relationship of any kind between the Company and any such person. Any rights
that a Participant, beneficiary or other person may have under this Plan shall
not be assignable by any such person. Nothing contained herein shall prevent the
Company, in its sole discretion, from establishing a trust, including a
so-called rabbi trust, for the purpose of providing for the payment of
obligations arising under the Plan. The assets of such trust shall remain
subject to the claims of the Company's creditors, and no Participant shall have
any interest in the assets of such trust. The Company shall have no further
obligation with respect to amounts paid from any such trust.

5.3    LIMITATION ON RIGHTS CREATED BY PLAN. Nothing in this Plan will give a
Participant any right to continue as a Director of the Company or the Life
Company.

5.4    INTERPRETATION. This Plan will be construed, enforced and administered
according to the laws of the Commonwealth of Massachusetts.

5.5    ADMINISTRATION. The Company may adopt any rules and procedures it deems
appropriate to provide for the orderly and efficient administration of the Plan.

5.6    CHANGE OF CONTROL. For two years after a Change of Control, the Plan may
not be terminated nor may the Plan be amended if such amendment would serve to
reduce the amount of any benefit provided under this Plan below the amount that
would have been payable on the date immediately preceding the date the Change of
Control occurred or in any way adversely affect the rate of amount of benefit
vesting or benefit accrual in effect on the date immediately preceding the date
the Change of Control occurred.

A "Change of Control" shall be deemed to have occurred if:

(i) any Person (as defined below) has acquired, "beneficial ownership" (within
the meaning of Rule 13d-3, as promulgated under Section 13(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act")), directly or indirectly,
of securities of the Company or John Hancock Life Insurance Company representing
30% or more of the combined Voting Power (as defined below) of the securities of
the Company or John Hancock Life Insurance Company; provided, however, that the
event described in this paragraph (i) shall not be deemed to be a Change of
Control by virtue of an acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company, John Hancock Life Insurance
Company, or any Affiliate; or

(ii) within any 24-month period, the persons who, at the beginning of such
period, were members of the Board (the "Incumbent Company Directors") shall
cease to constitute at least a majority of the Board or the board of directors
of any successor to the Company; provided, however, that any director elected to
the Board, or nominated for election to the Board, by at least two-thirds (2/3)
of the Incumbent Company Directors then still in office shall be deemed to be an
Incumbent Company Director for purposes of this subclause (ii); provided,
however, that no individual initially elected or nominated for election to the
Board as a result of an actual or threatened election contest with respect to
directors or as a result of any other actual or threatened solicitation of
proxies by or on behalf of any Person other than the Board shall be deemed to be
an Incumbent Company Director; or

(iii) within any 24-month period, the persons who, at the beginning of such
period, were members of the John Hancock Life Insurance Company Board (the
"Incumbent John Hancock Life Insurance Company Directors") shall cease to
constitute at least a majority of the John Hancock Life Insurance Company Board
or the board of directors of any successor to John Hancock Life Insurance
Company; provided, however, that any director elected to the John Hancock Life
Insurance Company Board, or nominated for election to the John Hancock Life
Insurance Company Board, by at least two-thirds (2/3) of the Incumbent John
Hancock Life Insurance Company Directors then still in

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office shall be deemed to be an Incumbent John Hancock Life Insurance Company
Director for purposes of this subclause (iii); provided, however, that no
individual initially elected or nominated for election to the John Hancock Life
Insurance Company Board as a result of an actual or threatened election contest
with respect to directors or as a result of any other actual or threatened
solicitation of proxies by or on behalf of any Person other than the John
Hancock Life Insurance Company Board shall be deemed to be an Incumbent John
Hancock Life Insurance Company Director; or

(iv) upon the consummation of a merger, consolidation, share exchange, division,
sale or other disposition of all or substantially all of the assets of the
Company (a "Company Corporate Event") and immediately following the consummation
of which the stockholders of the Company, immediately prior to such Company
Corporate Event do not hold, directly or indirectly, a majority of the Voting
Power of

(A)   in the case of a merger or consolidation, the surviving or resulting
corporation,

(B)   in the case of a statutory share exchange, the acquiring corporation,

(C)   in the case of a division or a sale or other disposition of assets, each
surviving, resulting or acquiring corporation which, immediately following the
relevant Company Corporate Event, holds more than 25% of the consolidated assets
of the Company immediately prior to such Company Corporate Event, [provided that
no Change of Control shall be deemed to have occurred if the Executive is
employed, immediately following such Company Corporate Event, by any entity in
which the stockholders of the Company immediately prior to such Company
Corporate Event hold, directly or indirectly, a majority of the Voting Power];

Provided that in each case such majority of the Voting Power is represented by
securities of the Company that were outstanding immediately prior to such
Company Corporate Event (or, if applicable, is represented by shares into which
such securities of the Company were converted pursuant to such Company Corporate
Event); or

(v) upon the consummation of a merger, consolidation, share exchange, division,
sale or other disposition of all or substantially all of the assets of John
Hancock Life Insurance Company which has been approved by the stockholders of
John Hancock Life Insurance Company (a "John Hancock Life Insurance Company
Corporate Event"), and immediately following the consummation of which the
stockholders of John Hancock Life Insurance Company immediately prior to such
John Hancock Life Insurance Company Corporate Event do not hold, directly or
indirectly, a majority of the Voting Power of

(A)   in the case of a merger or consolidation, the surviving or resulting
corporation,

(B)   in the case of a statutory share exchange, the acquiring corporation, or

(C)   in the case of a division or a sale or other disposition of assets, each
surviving, resulting or acquiring corporation which, immediately following the
relevant John Hancock Life Insurance Company Corporate Event, holds more than
25% of the consolidated assets of John Hancock Life Insurance Company
immediately prior to such John Hancock Life Insurance Company Corporate Event,
[provided that no Change of Control shall be deemed to have occurred if the
Executive is employed, immediately following such John Hancock Life Insurance
Company Corporate Event, by any entity in which the stockholders of John Hancock
Life Insurance Company immediately prior to such John Hancock Life Insurance
Company Corporate Event hold, directly or indirectly, a majority of the Voting
Power];

Provided that in each case such majority of the Voting Power is represented by
securities of John Hancock Life Insurance Company that were outstanding
immediately prior to such John Hancock Life Insurance Company Corporate Event
(or, if applicable, is represented by shares into which such securities of John
Hancock Life Insurance Company were converted pursuant to such John Hancock Life
Insurance Company Corporate Event); or

(vi) any other event occurs which the Board or the John Hancock Life Insurance
Company Board declares to be a Change of Control.

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                                                                   Exhibit 10.14

                             NON-EMPLOYEE DIRECTORS'
                         LONG-TERM STOCK INCENTIVE PLAN

              (As Amended and Restated Effective February 11, 2002)

Section 1.  Purpose:

The Non-Employee Directors' Long-Term Stock Incentive Plan (the "Plan") has been
adopted to encourage and create significant ownership of Common Stock among the
non-employee members of the Board of Directors of the Company. Additional
purposes of the Plan include:

..     To provide meaningful incentive to outside Directors for making
substantial contributions to the Company Group's long-term business growth;

..     To closely align the interests of the outside Directors with those of
Company shareholders by providing opportunities to build significant longer term
stock ownership.

Section 2.  Definitions:

..     Award means any Stock Option or Stock Award granted under the Plan.

..     Board means the Company's Board of Directors.

..     Code means the Internal Revenue Code of 1986, as amended from time to
time.

..     Committee means a committee of not less than two non-employee members of
the Board, appointed by the Board to administer the Plan. The Committee shall be
comprised of members who qualify to administer this Plan as contemplated by both
(a) Rule 16b-3 under the 1934 Act or any successor rule and (b) Section 162(m)
of the Code.

..     Common Stock means the Common Stock of the Company.

..     Company means John Hancock Financial Services, Inc., a corporation
established under the laws of the State of Delaware.

..     Early Retirement Age means age 60 with 10 years of service as a member of
the Board of the Company or John Hancock Life Insurance Company.

..     Fair Market Value means, with respect to Common Stock, the fair market
value of such property as determined by the Committee in good faith in such
manner as shall be established by the Committee from time to time. Under no
circumstances shall the Fair Market Value be less than the par value of the
Common Stock. Any time that the Common Stock is traded on a public market, Fair
Market Value means the mean of the reported high and low sale prices of the
shares of Common Stock on the principal exchange on which the Stock is traded on
such date, or if no Common Stock is traded on such date, on the most recent date
on which Common Stock was traded, as reflected on such principal exchange.

..     Mandatory Retirement Age means the mandatory retirement age as established
by the Board from time to time.

..     Shares means shares of the Common Stock of the Company.

..     Stock Award means an Award to an Eligible Director comprised of Common
Stock or valued by reference to Common Stock granted under Section 6(a) of the
Plan.

..     Stock Option means an Award in the form of the right to purchase a
specified number of Shares at a

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specified price during a specified period. Stock Options under the Plan are not
intended to meet the requirements of Section 422 of the Code or any successor
provision.

Section 3.  Effective Dates:

The Plan shall be effective as of the date of approval of the Plan by the
Company's shareholders. No Awards may be made under the Plan after ten years
from the date of approval or earlier termination of the Plan by the Board.

Section 4.  Administration:

The Plan shall be administered by the Committee. The Committee shall have the
authority to adopt, alter and repeal such administrative rules, guidelines and
practices governing the operation of the Plan as it shall from time to time
consider advisable. The Committee shall also have full discretion to interpret
the provisions of the Plan.

Section 5.  Eligibility:

Eligibility in the Plan is limited to those outside Directors of the Company
("Eligible Directors") who either (1) have never been an employee of the Company
or the John Hancock Life Insurance Company; or (2) have served on the Policy
Committee of the Company or the John Hancock Life Insurance Company and who
continue to serve on the Board of Directors of the Company as a Director after
retirement under the Company pension plan.

Section 6.  Stock Available for Awards:

(a)    Common Shares Available. The maximum number of Shares available for
Awards under the Plan will be 1,000,000. The Shares underlying any Awards which
are forfeited, cancelled, reacquired by the Company, satisfied without the
issuance of Common Stock or otherwise terminated (other than by exercise) shall
be added back to the Shares available for issuance under the Plan.

(b)    Adjustments. In the event of any stock dividend, stock split, combination
or exchange of Shares, merger, consolidation, spin-off or other distribution
(other than normal cash dividends) of assets to Company shareholders, or any
other change affecting Shares, such proportionate adjustments, if any, as the
Committee in its discretion may deem appropriate to reflect such change shall be
made with respect to (i) aggregate number of Shares that may be issued under the
Plan; (ii) the number of Shares covered by each outstanding Award made under the
Plan; and (iii) the option, base or purchase price per Share for any outstanding
Stock Options and other Awards granted under the Plan provided that any such
actions are consistently and equitably applicable to all affected participants.
In addition, any Shares issued by the Company through the assumption or
substitution of outstanding grants or grant commitments from an acquired entity
shall not reduce the Shares available for issuance under the Plan.

Section 7.  Awards:

(a)    Annual Board Retainer.

       (1)  Effective as of May 14, 2001, one half of the annual retainer (which
shall be determined from time to time by the Board of Directors or the
Committee) shall be paid to Eligible Directors in the form of Stock Awards.
These Stock Awards shall not be subject to any restrictions. The number of
shares of Stock Awards shall be based on the Fair Market Value of the Common
Stock as of the first day of each quarter.

       (2)  In addition, each Eligible Director may elect to utilize the cash
portion of his or her annual retainer for the purchase of Common Stock. If this
election is made, PaineWebber, Inc. (or any successor agent hereafter appointed)
acting as an independent agent, will purchase Common Stock in the open market on
behalf of the electing Director, provided that, at the option of the Committee,
in lieu of any or all such open market purchases, the Company may issue and sell
such shares of JHFS Stock as Stock Awards under this Plan with the number of
shares issued to be determined based on a price per share equal to the Fair
Market Value of a share of the JHFS Stock on the date of such payment under this
Plan.

       (3)  For Eligible Directors who elect to defer the receipt of their
annual retainers under the Deferred

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Compensation Plan for Directors of John Hancock Financial Services, Inc. (the
"Deferred Compensation Plan"), a corresponding portion of the amount deferred
shall be held for the Eligible Director's benefit under the Deferred
Compensation Plan in the form of deferred stock units. Deferred stock units are
not actual shares of stock and cannot be settled in or surrendered for shares of
stock. Instead, they are distinct investments administered by the Company under
the Company's Deferred Compensation Plan for Directors that provide a return on
the deferred amount equal to the return that would occur if the deferred amount
were actually used to purchase shares of Common Stock, including the immediate
reinvestment of cash dividends when paid into shares of Common Stock. Holders of
deferred stock units have no voting rights or any attributes of stock ownership
other than such equivalent economic return. The number of deferred stock units
received by each Eligible Director under this paragraph shall be equal to the
amount deferred divided by the per share Fair Market Value of Common Stock on
the date any amount deferred would have been paid, but for the deferral.

       (4)  An Eligible Director who purchases Common Stock (or deferred stock
units) pursuant to subparagraph 2 or 3, above, shall be provided with matching
number of shares of JHFS Stock (or deferred stock units) equal to 25% (50% for
the first eight quarterly payments commencing after shareholder approval of this
plan) of the number of shares of Common Stock (or deferred stock units)
purchased under subparagraph 2 or 3. The additional Common Stock provided under
this subparagraph shall be referred to as Restricted Common Stock. The
additional deferred stock units ("Restricted deferred stock units") shall be
held under the Deferred Compensation Plan on behalf of the Eligible Directors.
Both the Restricted Common Stock and the Restricted deferred stock units shall
be subject to forfeiture by the Eligible Director if (i) his service as a
Director for the Company terminates within three years of the of the Award (or
the establishment of the Restricted deferred stock units), unless the
termination results from death, disability, the attainment of Mandatory
Retirement Age, or after the attainment of Early Retirement Age; or (ii) the
Eligible Director sells any of the non-deferred Common Stock which he or she
elected receive under subparagraph 2 of this section within three years of the
receipt of that stock, or transfers any of the deferred stock units which he or
she received under subparagraph 3 of this section within three years of the
establishment of those deferred stock units. Subparagraph (ii) shall not apply
for an Eligible Director who attains his or her Mandatory Retirement Age. These
restrictions will cease to apply and any Restricted Common Stock and Restricted
deferred stock units subject to such restrictions will become nonforfeitable if
there is a Change in Control of the Company, as defined in the John Hancock
Financial Services, Inc. Pension Plan.

(b)    Stock Options. For calendar year 2001, each Eligible Director shall be
given a grant of 15,000 Stock Options. Thereafter, each Eligible Director shall
be given an annual grant of 5,000 Stock Options, except that for each new
Eligible Director elected to the Board on or after May 14, 2001, such new
Eligible Director shall be entitled to a grant of 15,000 Stock Options upon his
or her election to the Board and will not be eligible for the annual grant of
5,000 Stock Options during the year of his or her election. Except for the first
year grant of Stock Options for newly hired Directors, all grants of Stock
Options under this Plan shall be made on the date of the annual meeting of the
shareholders of the Company.

The Stock Options awarded under this Plan shall have a term of five years and
shall be exercisable immediately. For an Eligible Director who has terminates
his service as a Director after having attained Early Retirement Age or because
he or she has attained Mandatory Retirement Age, any unexercised Stock Options
shall continue for the remaining period of their original term. For an Eligible
Director who terminates not having attained either Early Retirement Age or
Mandatory Retirement Age, any unexercised Stock Options shall continue for the
lesser of one year from the date of termination or the remaining period of the
original term.

A Stock Option shall confer on each Eligible Director the right to purchase the
specified number of Shares from the Company. The Committee shall establish the
option price at the time each Stock Option is awarded, provided that price shall
not be less than 100% of the Fair Market Value on the date of the grant. The
recipient of a Stock Option grant shall pay for the Shares at the time of
exercise in cash or such other forms as the Committee may approve, including
Shares valued at their Fair Market Value on the date of exercise, or in a
combination of forms. The Committee may also permit Eligible Directors to have
the option price delivered to the Company by a broker pursuant to an arrangement
whereby the Company, upon irrevocable instructions from an Eligible Director
delivers the exercised Shares to the broker.

Section 8.  General Provisions Applicable to Awards:

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(a)    Transferability. Except as permitted by the Committee in its sole
discretion, Awards under the Plan will be non-transferable and accordingly shall
not be assignable, alienable, saleable or otherwise transferable other than by
will or the laws of descent and distribution.

(b)    General Restriction. Each Award shall be subject to the requirement that,
if at any time the Committee shall determine, in its sole discretion, that the
listing, registration or qualification of any Award under the Plan upon any
securities exchange or under any state or federal law, or the consent or
approval of any government regulatory body, is necessary or desirable as a
condition of, or in connection with, the granting of such Award or the grant or
settlement thereof, such Award may not be exercised or settled in whole or in
part unless such listing, registration, qualification, consent or approval has
been effected or obtained free of any conditions not acceptable to the
Committee.

(c)    Grant Terms and Conditions. Subject to the other provisions of the Plan,
the Committee shall determine the provisions and duration of grants made under
this Plan, including the option prices for all Stock Options, the consideration,
if any, to be required from Eligible Directors for Stock Awards, and the
conditions under which an Eligible Director will retain rights under this Plan
in the event of the participant's termination of employment while holding any
outstanding Awards.

(d)    Tax Withholding. The Company shall have the right to deduct from any
settlement of an Award, including the delivery or vesting of Shares, made under
the Plan, a sufficient amount to cover any required withholding of any federal,
state or local taxes required by law or to take such other actions as may be
necessary to satisfy any such withholding obligations. The Committee may require
or permit Shares to be used to satisfy required tax withholding and such Shares
shall be valued at their Fair Market Value on the date the tax withholding is
effective.

(e)    Documentation of Grants. Awards made under the Plan shall be evidenced by
written agreements or such other appropriate documentation as the Committee
shall prescribe. The Committee need not require the execution of any instrument
or acknowledgment of notice of an Award under the Plan, in which case acceptance
of such Award by the respective Eligible Director will constitute agreement to
the terms of the Award.

(f)    Settlement. The Committee shall determine whether Awards are settled in
whole or in part in cash, Shares, or other Awards. The Committee may require or
permit an Eligible Director to defer all or any portion of a payment under the
Plan, including the crediting of interest on deferred amounts denominated in
cash.

(g)    Change in Control. In order to preserve an Eligible Director's rights
under an Award in the event of a change in control of the Company, the Committee
in its discretion may, at the time an Award is made or at any time thereafter,
take one or more of the following actions: (i) provide for the acceleration of
any time period relating to the exercise or realization of the Award, (ii)
provide for the purchase of the Award upon the Participant's request for an
amount of cash or other property that could have been received upon the exercise
or realization of the Award had the Award been currently exercisable or payable,
(iii) adjust the terms of the Award in a manner determined by the Committee to
reflect the change in control, (iv) cause the Award to be assumed, or new rights
substituted therefore, by another entity, or (v) make such other provisions as
the Committee may consider equitable and in the best interests of the Company.

Section 9.  Miscellaneous:

(a)    Plan Amendment. The Board may amend the Plan as it deems necessary or
appropriate to better achieve the purposes of the Plan, except that no amendment
without the approval of the Company's shareholders shall be made which would (i)
increase the total number of Shares available for issuance under the Plan; or
(ii) cause the Plan not to comply with Rule 16b-3 of the 1934 Act.

(b)    No Right to Continued Service. No person shall have any claim or right to
be granted an Award, and the grant of an Award shall not be construed as giving
an Eligible Director the right to continued service as a Director of the
Company. The Company expressly reserves the right at any time to dismiss an
Eligible Director free from any liability or claim under the Plan, except as
expressly provided by an applicable agreement or other documentation of an
Award.

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<PAGE>

(c)    No Rights as Shareholder. Only upon issuance of Shares to an Eligible
Director (and only in respect to such Shares) shall the Eligible Director obtain
the rights of a shareholder, subject, however, to any limitations imposed by the
terms of the applicable Award.

(d)    No Fractional Shares. No fractional shares shall be issued under the
Plan. However, the Committee may provide for a cash payment as settlement in
lieu of any fractional shares.

(e)    Unfunded Plan. The Plan shall be unfunded and shall not create, or be
construed to create a trust or separate fund(s). Likewise, the Plan shall not
establish any fiduciary relationship between the Company and any Eligible
Director or other person. To the extent any person holds any rights by virtue of
an Award granted under the Plan, such right shall be no greater than the right
of an unsecured general creditor.

(f)    Successors and Assignees. The Plan shall be binding on all successors and
assignees of an Eligible Director, including, without limitation, the estate of
such Eligible Director and the executor, administrator or trustee of such
estate, or any receiver or trustee in bankruptcy or representative of the
Eligible Director's creditors.

(g)    Governing Law. The validity, construction and effect to the Plan and any
actions taken under or relating to the Plan shall be determined in accordance
with the laws of the State of Delaware and applicable federal law.

                                        5

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