Document:

EX-10.(a)

CLEVELAND-CLIFFS INC

Long-Term Incentive Program

Participant Grant and Agreement

Year 2006

WHEREAS, on April 14, 1992, the shareholders of Cleveland-Cliffs Inc, an Ohio corporation
(“Company” and the term “Company” as used herein shall also include the Company’s consolidated
Subsidiaries) approved the 1992 Incentive Equity Plan of the Company; and

WHEREAS, on May 13, 1997, the shareholders of the Company approved the 1992 Incentive Equity
Plan (as Amended and Restated as of May 13, 1997) of the Company; and

WHEREAS, on May 11, 1999, the shareholders of the Company approved an amendment (“Amendment”)
to the 1992 Incentive Equity Plan (as Amended and Restated as of May 13, 1997); and

WHEREAS, on May 8, 2000, the Board of Directors of the Company (“Board”), adopted the 2000
Retention Unit Plan (“2000 Retention Plan”); and

WHEREAS, the Compensation and Organization Committee (“Committee”) of the Board has been
appointed to administer the 1992 Incentive Equity Plan (as Amended and Restated as of May 13,
1997), as amended by the Amendment (“1992 ICE Plan”) and the 2000 Retention Plan pursuant to the
terms thereof; and

WHEREAS, under the 1992 ICE Plan and the 2000 Retention Plan, the Committee on May 8, 2000,
adopted a Long-Term Incentive Program (“Incentive Program”) to encourage officers and key employees
of the Company to achieve Company management objectives established by the Committee and reported
to the Board and to create additional retention incentives; and

WHEREAS, the Incentive Program has been amended by an Amendment No. 1 effective January 1,
2006; and

WHEREAS, (“Participant”) is an employee of the Company or of a Subsidiary of the Company; and

WHEREAS, on (“Date of Grant”) the Committee authorized the granting to the Participant of 
( ) Performance Shares and an additional  ( ) Retention Units covering
the incentive period commencing January 1, 2006 and ending December 31, 2008 (“Incentive Period”)
under the Incentive Program; and

WHEREAS, the Committee has authorized the execution of a Participant Grant and Agreement
(“Agreement”) in the form hereof.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the
Participant and Company agree as follows:

ARTICLE 1.

Definitions

All terms used herein with initial capital letters shall have the meanings assigned to them in
the WHEREAS clauses and the following additional terms, when used herein with initial capital
letters, shall have the following meanings:

1.1 “Average Net Assets” shall mean the total assets less (i) current liabilities (excluding
the current portion of interest-bearing debt) and (ii) any minority interests, as determined as of
the end of the Incentive Period based on a monthly average, beginning on December 31, 2005, and
ending on December 31, 2008.

1.2 “Change in Control” shall mean a change in control event as defined under Section 409A of
the Internal Revenue Code, which to the extent provided under Section 409A, shall include but not
be limited to:

	 	(i)	 	a change in the ownership of the Company by which any one
person, or more than one person acting as a group, acquires ownership of stock
of the Company that, together with stock held by such person or group,
constitutes more than Fifty Percent (50%) of the total fair market value or
total voting power of the stock of the Company;

	 	(ii)	 	a change in effective control of the Company by which:

	 	1.	 	any one person, or more than one person acting
as a group, acquires (or has acquired during the 12-month period ending
on the date of the most recent acquisition by such person or persons)
ownership of stock of the Company possessing Thirty-Five Percent (35%)
or more of the total voting power of the stock of the Company; or

	 	2.	 	a majority of members of the Board is replaced
during any 12-month period by directors whose appointment or election
is not endorsed by a majority of the members of the Board prior to the
date of the appointment or election; or

	 	(iii)	 	a change in the ownership of a substantial portion of the
assets of the Company by which any one person, or more than one person acting
as a group, acquires (or has acquired during the 12-month period ending on the
date of the most recent acquisition by such person or persons) assets from the
Company that have a total gross fair market value equal to or more than Forty
Percent (40%) of the total gross fair market value of all of the assets of the
Company immediately prior to such acquisition or acquisitions. For this
purpose, gross fair market value means the value of the assets of the
corporation, or the value of the assets being disposed of, determined without
regard to any liabilities associated with such assets.

Persons shall be considered to be acting as a group, if they are owners of a corporation that
enters into a merger, consolidation, purchase or acquisition of stock, or similar business
transaction with the Company.

There is no change in control event under this Section 1.2 when there is a transfer to an
entity that is controlled by the shareholders of the transferring corporation immediately after the
transfer, as provided in this paragraph. A transfer of assets by the Company is not treated as a
change in the ownership of such assets if the assets are transferred to:

	 	(i)	 	A shareholder of the Company (immediately before the asset
transfer) in exchange for or with respect to its stock;

	 	(ii)	 	An entity, 50 percent or more of the total value or voting
power of which is owned, directly or indirectly, by the Company;

	 	(iii)	 	A person, or more than one person acting as a group, that
owns, directly or indirectly, 50 percent or more of the total value or voting
power of all the outstanding stock of the Company; or

	 	(iv)	 	An entity, at least 50 percent of the total value or voting
power of which is owned, directly or indirectly, by a person described in
subparagraph (iii) above.

For purposes of this paragraph and except as otherwise provided, a person’s status is determined
immediately after the transfer of the assets. For example, a transfer to a corporation in which
the Company has no ownership interest before the transaction, but which is a majority-owned
subsidiary of the Company after the transaction is not treated as a change in the ownership of the
assets of the Company.

Notwithstanding the foregoing, for purposes of this Section 1.2, the following acquisitions
shall not constitute a Change in Control: (A) any issuance of Voting Stock of the Company directly
from the Company that is approved by the Incumbent Board (as defined below in this Section 1.2,),
(B) any acquisition by the Company of Voting Stock of the Company, (C) any acquisition of Voting
Stock of the Company by any employee benefit plan (or related trust) sponsored or maintained by the
Company or any Subsidiary, or (D) any acquisition of Voting Stock of the Company by any Person
pursuant to a Business Combination (as defined below in this Section 1.2).

The “Incumbent Board” shall mean those individuals who, as of the date hereof, constitute the
Board; provided, however, that any individual becoming a director subsequent to the date hereof
whose election, or nomination for election by the Company’s shareholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board (either by a specific vote
or by approval of the proxy statement of the Company in which such person is named as a nominee for
director, without objection to such nomination) shall be deemed to have been a member of the
Incumbent Board, but excluding for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest (within the meaning of Rule
14a-11 of the Exchange Act) with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other than the Board.

A “Business Combination” shall mean any business transaction such as a reorganization, merger
or consolidation involving the Company, a sale or other disposition of all or substantially all of
the assets of the Company, or any other transaction involving the Company, if, in each case,
immediately following any such business transaction, (A) all or substantially all of the
individuals and entities who were the beneficial owners of Voting Stock of the Company immediately
prior to such business transaction beneficially own, directly or indirectly, more than 55% of the
combined voting power of the then outstanding shares of Voting Stock of the entity resulting from
such business transaction (including, without limitation, an entity which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets either directly or
through one or more subsidiaries) in substantially the same proportions relative to each other as
their ownership, immediately prior to such business transaction, of the Voting Stock of the
Company, (B) no Person (other than the Company, such entity resulting from such business
transaction, or any employee benefit plan (or related trust) sponsored or maintained by the
Company, any Subsidiary or such entity resulting from such business transaction) beneficially owns,
directly or indirectly, 30% or more of the combined voting power of the then outstanding shares of
Voting Stock of the entity resulting from such business transaction, and (C) at least a majority of
the members of the board of directors of the entity resulting from such business transaction were
members of the Incumbent Board at the time of the execution of the initial agreement or of the
action of the Board providing for such business transaction.

1.3 “Common Share(s)” shall have the meaning assigned thereto in the 1992 ICE Plan.

1.4 “Disability or Disabled” shall mean the disability of a Participant as defined by the
long-term disability plan of the Company in effect for such Participant.

1.5 “Market Value Price” shall mean the latest available closing price per share of a Common
Share of the Company and the latest available closing price per share of a Common Share of each of
the entities in the Peer Group, as the case may be, on the New York Stock Exchange or other
recognized market if the stock does not trade on the New York Stock Exchange at the relevant time.

1.6 “Peer Group” shall mean the group of companies, as more particularly set forth on attached
Exhibit A, against which the Relative Total Shareholder Return of the Company is measured
over the Incentive Period.

1.7 “Performance Objectives” shall mean for the Incentive Period the target objectives of the
Company of the Relative Total Shareholder Return and Return on Net Asset goals established by the
Committee and reported to the Board, as more particularly set forth on attached Exhibit B.

1.8 “Performance Share” shall have the meaning assigned thereto in the 1992 ICE Plan.

1.9 “Performance Shares Earned” shall mean the number of Common Shares of the Company (or cash
equivalent) earned by a Participant following the conclusion of an Incentive Period in which a
required minimum of Company Performance Objectives were met or exceeded.

1.10 “Relative Total Shareholder Return” shall mean for the Incentive Period the Total
Shareholder Return of the Company compared to the Total Shareholder Return of the Peer Group, as
more particularly set forth on attached Exhibit C.

1.11 “Retirement or Retired” shall mean retirement as defined in the retirement plan of the
Company, including without limitation any supplemental retirement plan.

1.12 “Return on Net Assets” shall mean the Company’s Earnings Before Taxes (excluding minority
interest) divided by Average Net Assets, as more particularly described on attached Exhibit
D.

1.13 “Subsidiary” shall have the meaning assigned thereto in the 1992 ICE Plan.

1.14 “Total Shareholder Return” shall mean for the Incentive Period the cumulative return to
shareholders of the Company and to the shareholders of each of the entities in the Peer Group
during the Incentive Period, measured by the change in Market Value Price per share of a Common
Share of the Company plus dividends (or other distributions) reinvested over the Incentive Period
and the change in the Market Value Price per share of the common share of each of the entities in
the Peer Group plus dividends (or other distributions) reinvested over the Incentive Period,
determined on the last business day of each quarter during the Incentive Period compared to a base
measured by the average Market Value Price per share of a Common Share of the Company and of a
common share of each of the entities in the Peer Group on the last business day of each month in
the fourth quarter of the year immediately preceding the Incentive Period. Dividends (or other
distributions) per share are assumed to be reinvested in the applicable stock on the last business
day of the quarter during which they are paid at the then Market Value Price per share, resulting
in a fractionally higher number of shares owned at the market price.

ARTICLE 2.

Grant and Terms of Performance Shares

2.1 Grant of Performance Shares. Pursuant to the Incentive Program, the Company
hereby grants to the Participant the number of Performance Shares as specified in the Ninth WHEREAS
clause of this Agreement, without dividend equivalents, effective as of the Date of Grant.

2.2 Issuance of Performance Shares. The Performance Shares covered by this Agreement
shall only result in the issuance of Common Shares (or cash or a combination of Common Shares and
cash, as decided by the Committee in its sole discretion), after the completion of the Incentive
Period and only if such Performance Shares are earned as provided in Section 2.3 of this Article 2.

2.3 Performance Shares Earned. Payout of Performance Shares Earned, if any, shall be
based upon the degree of achievement of the Company Performance Objectives, all as more
particularly set forth in Exhibit B, with actual payouts interpolated between the
performance levels shown on Exhibit B. In no event, shall any Performance Shares be earned
for actual achievement by the Company in excess of the allowable maximum as established under the
Performance Objectives.

2.4 Calculation of Payout of Performance Shares. The Performance Shares granted shall
be earned as Performance Shares Earned based on the degree of achievement of the Performance
Objectives established for the Incentive Period. The percentage level of achievement determined
for each Performance Objective shall be multiplied by the number of Performance Shares granted to
determine the actual number of Performance Shares Earned. The calculation as to whether the
Company has met or exceeded the Company Performance Objectives shall be determined in accordance
with this Agreement.

2.5 Payment of Performance Shares.

(a). Payment of Performance Shares Earned shall be made in the form of Common Shares (or cash
or a combination of Common Shares and cash, as decided by the Committee in its sole discretion),
and shall be paid after the determination by the Committee of the level of attainment of the
Company Performance Objectives (the calculation of which shall have been previously reviewed by an
independent accounting professional).

(b). Any payment of Performance Shares Earned to a deceased Participant shall be paid to the
beneficiary designated by the Participant on the Designation of Death Beneficiary attached as
Exhibit E and filed with the Company. If no such beneficiary has been designated or
survives the Participant, payment shall be made to the estate of a Participant. A beneficiary
designation may be changed or revoked by a Participant at any time, provided the change or
revocation is filed with the Company.

(c). Prior to payment, the Company shall only have an unfunded and unsecured obligation to
make payment of Performance Shares Earned to the Participant. The Performance Shares covered by
this Agreement that have not yet been earned as Performance Shares Earned are not transferable
other than by will or pursuant to the laws of descent and distribution.

2.6 Death, Disability, Retirement, or Other.

(a). With respect to Performance Shares granted to a Participant whose employment is
terminated because of death, Disability, Retirement, or is terminated by the Company without cause,
the Participant shall receive as Performance Shares Earned the number of Performance Shares as is
then determined under Section 2.4 at the end of such Incentive Period, prorated based upon the
number of months between January 1, 2006 and the date the Participant ceased to be employed by the
Company compared to the thirty-six (36) months in the Incentive Period.

(b). In the event a Participant voluntarily terminated employment or is terminated by the
Company with cause, the Participant shall forfeit all right to any Performance Shares that would
have been earned under this Agreement.

ARTICLE 3.

Grant and Terms of Retention Units

3.1 Grant of Retention Units. Pursuant to the Incentive Program, the Company hereby
grants to the Participant the number of Retention Units as specified in the Ninth WHEREAS clause of
this Agreement, without dividend equivalents, effective as of the Date of Grant.

3.2 Condition of Payment. The Retention Units covered by this Agreement shall only
result in the payment in cash of the value of the Retention Units if the Participant remains in the
employ of the Company or a Subsidiary throughout the Incentive Period.

3.3 Calculation of Cash Payout. To determine the amount of the cash payout of the
Retention Units, the number of Retention Units granted under this Agreement shall be multiplied by
the Market Value Price of a Common Share of the Company on the last day of the Incentive Period.

3.4 Payment of Retention Units.

(a). Payment of Retention Units shall be made in cash and shall be paid at the same time as
the payment of Performance Shares Earned pursuant to Section 2.5(a), provided,
however, in the event no Performance Shares are earned, then the Retention Units shall be
paid in cash at the time the Performance Shares would normally have been paid.

(b). Any payment of Retention Units to a deceased Participant shall be paid to the beneficiary
designated by the Participant on the Designation of Death Beneficiary attached as Exhibit E
and filed with the Company. If no such beneficiary has been designated or survives the
Participant, payment shall be made to the estate of a Participant. A beneficiary designation may
be changed or revoked by a Participant at any time, provided the change or revocation is filed with
the Company.

(c). Prior to payment, the Company shall only have an unfunded and unsecured obligation to
make payment of Retention Units to the Participant. The Retention Units covered by this Agreement
are not transferable other than by will or pursuant to the laws of descent and distribution.

3.5 Death, Disability, Retirement or Other. With respect to Retention Units granted
to a Participant whose employment is terminated because of death, Disability, Retirement, or is
terminated by the Company without cause during the Incentive Period, the Participant shall receive
the number of Retention Units as calculated in Section 2.4, prorated based upon the number of
months between January 1, 2006 and the date the Participant ceased to be employed by the Company
compared to the thirty-six (36) months in the Incentive Period.

ARTICLE 4.

Other Terms Common to Retention Units and Performance Shares

4.1 Forfeiture.

(a). A Participant shall not render services for any organization or engage directly or
indirectly in any business which is a competitor of the Company or any affiliate of the Company, or
which organization or business is or plans to become prejudicial to or in conflict with the
business interests of the Company or any affiliate of the Company.

(b). Failure to comply with subsection (a) above will cause a Participant to forfeit the right
to Performance Shares and Retention Units and require the Participant to reimburse the Company for
the taxable income received or deferred on Performance Shares that become payable to the
Participant and on Retention Units that have been paid out in cash within the 90-day period
preceding the Participant’s voluntary termination of employment.

(c). Failure of the Participant to repay to the Company the amount to be reimbursed in
subsection (b) above within three days of termination of employment will result in the offset of
said amount from the Participant’s account balance in the Company’s Voluntary Non-Qualified
Deferred Compensation Plan (if applicable) and/or from any accrued salary or vacation pay owed at
the date of termination of employment or from future earnings payable by the Participant’s next
employer.

4.2 Change in Control. In the event a Change in Control occurs before completion of
an Incentive Period(s), all Performance Shares granted to a Participant shall immediately become
Performance Shares Earned, the value of which shall be paid in cash and all Retention Units shall
become nonforfeitable and paid out in cash, both within 10 days of the Change in Control.

ARTICLE 5.

General Provisions

5.1 Compliance with Law. The Company shall make reasonable efforts to comply with all
applicable federal and state securities laws; provided, however, notwithstanding
any other provision of this Agreement, the Company shall not be obligated to issue any Common
Shares or pay the value of any Retention Units pursuant to this Agreement if the issuance or
payment thereof would result in a violation of any such law.

5.2 Withholding Taxes. To the extent that the Company is required to withhold
federal, state, local or foreign taxes in connection with any payment of Performance Shares Earned
or Retention Units to a Participant under the Incentive Program, and the amounts available to the
Company for such withholding are insufficient, it shall be a condition to the receipt of such
payment of Performance Shares Earned or Retention Units or the realization of such benefit that the
Participant make arrangements satisfactory to the Company for payment of the balance of such taxes
required to be withheld. If necessary, the Committee may require relinquishment of a portion of
such Performance Shares Earned or such Retention Units. In the case of Performance Shares Earned,
the Participant may elect to satisfy all or any part of any such withholding obligation by
surrendering to the Company a portion of the Common Shares that are issued or transferred or that
become nontransferable by the Participant hereunder, and the Common Shares so surrendered by the
Participant shall be credited against any such withholding obligation at the Market Value Price per
share of such Common Shares on the date of such surrender. In no event, however, shall the Company
accept Common Shares for payment of taxes in excess of required tax withholding rates, except that,
in the discretion of the Committee, a Participant or such other person may surrender Common Shares
owned for more than six months to satisfy any tax obligation resulting from such transaction.

5.3 Continuous Employment. For purposes of this Agreement, the continuous employment
of the Participant with the Company shall not be deemed to have been interrupted, and the
Participant shall not be deemed to have ceased to be an employee of the Company, by reason of the
transfer of his employment among the Company and its Subsidiaries or an approved leave of absence.

5.4 Claim to Awards and Employment Rights. No Participant shall have any claim or
right to be granted another award under the Incentive Program. The Incentive Program shall not
confer upon any Participant any right with respect to the continuance of employment or other
service with the Company and shall not interfere in any way with any right that the Company would
otherwise have to terminate any employment or other service of the Participant at any time.

5.5 Relation to Other Benefits. Any economic or other benefit to the Participant
under this Agreement or the Incentive Program shall not be taken into account in determining any
benefits to which the Participant may be entitled under any profit-sharing, retirement or other
benefit or compensation plan maintained by the Company or a Subsidiary and shall not affect the
amount of any life insurance coverage available to any beneficiary under any life insurance plan
covering employees of the Company or a Subsidiary.

5.6 Agreement Subject to Plans. The Retention Units and Performance Shares granted
under this Agreement and all of the terms and conditions hereof are subject to all of the terms and
conditions of the 1992 ICE Plan, the 2000 Retention Plan and the Incentive Program copies of which
are available upon request.

5.7 Amendments. The Incentive Program and this Agreement can be amended at any time
by the Company. Any amendment to the Incentive Program shall be deemed to be an amendment to this
Agreement to the extent that the amendment is applicable hereto. Except for amendments necessary
to bring the Incentive Program and this Agreement into compliance with current law including
Internal Revenue Code section 409A, no amendment to either the Incentive Program or this Agreement
shall adversely affect the rights of the Participant under this Agreement without the Participant’s
consent.

5.8 Severability. In the event that one or more of the provisions of this Agreement
shall be invalidated for any reason by a court of competent jurisdiction, any provision so
invalidated shall be deemed to be separable from the other provisions hereof, and the remaining
provisions hereof shall continue to be valid and fully enforceable.

5.9 Term. This Agreement shall be effective as of the Date of Grant and shall remain
in effect upon completion of the Incentive Period.

5.10 Governing Law. This Agreement shall be construed and governed in accordance with
the laws of the State of Ohio.

This Agreement is executed as of the Date of Grant.

CLEVELAND-CLIFFS INC

(“Company”)

Senior Vice President-Human Resources

The undersigned hereby acknowledges receipt of an executed original of this Participant Grant
and Agreement and accepts the Performance Shares and Retention Units granted hereunder on the terms
and conditions set forth herein and in the Incentive Program.

Participant

Print Name:

1

EXHIBITS

	 	 	 
	Exhibit A

Exhibit B

Exhibit C

Exhibit D

Exhibit E

	 	Peer Group

Performance Objectives

Relative Total Shareholder Return

Return on Net Assets

Beneficiary Designation
	 
	 	 

2

Exhibit A

PEER GROUP

(2006-2008)

	 	 	 
	AK Steel Holding Corp.

Algoma Steel Inc.

BHP Billiton

Carpenter Technology

Commercial Metals

CVRD

Gerdau Ameristeel Corp.

Gibraltar Industries

INCO Ltd.

IPSCO Inc.

	 	Mittal Steel Company NV

Nucor Corp.

Oregon Steel Mills Inc.

Phelps Dodge Corp.

Reliance Steel & Aluminum

Rio Tinto plc

Ryerson Inc.

Southern Peru Copper

Steel Dynamics Inc.

USX

Worthington Industries

The Peer Group of 21 companies shall not be adjusted within the Incentive Period, except to exclude
companies which at such time (a) are not then publicly traded, or (b) have at that time experienced
a major restructuring by reason of: (i) a Chapter 11 filing, or (ii) a spin-off of more than 50% of
any such company’s assets, such exclusion to be effective for the quarter after (a) or (b) above
occurs and for all quarters thereafter. The value of the stock of a Peer Group company will be
determined in accordance with the following:

	 	1.	 	If the stock is listed on an exchange in the U.S. or Canada, then the value on
such exchange will be used;

	 	2.	 	Otherwise, if the stock is traded in the U.S. as an American Depositary
Receipt, then the value of the ADR will be used; or

	 	3.	 	Otherwise, the value on the exchange in the country where the company is
headquartered will be used.

3

Exhibit B

PERFORMANCE OBJECTIVES

(2006-2008)

The target objectives of the Company are Relative Total Shareholder Return (share price plus
reinvested dividends) and Return on Net Assets over the three-year Incentive Period from January 1,
2006 to December 31, 2008. Achievement of the Relative Total Shareholder Return objective shall be
determined by the shareholder return of the Company relative to a predetermined group of steel,
mining and metal companies. Achievement of the Return on Net Assets objective is a Threshold
objective. Should Threshold performance not be achieved, the calculated payout generated under
Total Shareholder Return will be reduced by 50%. RONA shall be determined by comparing the Return
on Net Assets achieved for the three-year Incentive Period to the levels pre-established by the
Committee.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Performance	 	 
	Factor	 	Performance Level
	 	 	Threshold	 	Target	 	Maximun
	Relative TSR
	 	35th%ile	 	55th%ile	 	75th%ile
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Payout
	 	 	50	%	 	 	100	%	 	 	150	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Pre-Tax RONA	 	Calculated payout reduced 50% if RONA is below
12% at the end of the three year period
(approximately equivalent to the Cost of capital on
a pre-tax basis)

	 	 	 

4

Exhibit C

RELATIVE TOTAL SHAREHOLDER RETURN

(2006-2008)

Relative Total Shareholder Return for the Incentive Period is calculated as follows:

	 	1.	 	The Total Shareholder Return as defined in Section 1.14 of the Agreement for
each quarter of the Incentive Period for the Company shall be compared to the Total
Shareholder Return for each of the entities within the Peer Group for each quarter of
the Incentive Period. The results shall be ranked to determine the Company’s Total
Shareholder Return percentile ranking compared to the Peer Group in each such quarter.

	 	2.	 	The Total Shareholder Return percentile rankings of the Company for each
quarter of the Incentive Period shall then be averaged for the Incentive Period to
determine the average Relative Total Shareholder Return of the Company for the
Incentive Period, which shall be compared to the Relative Total Shareholder Return
performance target range of the Company established for the Incentive Period.

	 	3.	 	The Relative Total Shareholder Return performance target range has been
established for the 2006-2008 Incentive Period as follows:

	 	 	 
	 	 	2006-2008
	 	 	Relative Total Shareholder Return
	Performance Level	 	Percentile Ranking
	Maximum

Target

Threshold

	 	75th Percentile

55th Percentile

35th Percentile
	 
	 	 

5

Exhibit D

RETURN ON NET ASSETS,

(2006-2008)

Return on Net Assets is calculated as follows:

	 	1.	 	Earnings Before Taxes (as computed in 2. below) divided by the Average Net
Assets (as computed in 3. below) equals the Return on Net Assets for the Incentive
Period, stated as a percentage to two decimals.

	 	2.	 	Earnings Before Taxes is defined as cumulative pre-tax income (after adjusting
to exclude any minority interests income or loss) in the Incentive Period divided by
three.

	 	3.	 	Average Net Assets is defined as an average of total assets less (i)
non-interest bearing current liabilities and (ii) minority interests.

6

GRANT YEAR 2006

Exhibit E

BENEFICIARY DESIGNATION 

In accordance with the terms and conditions of the Cleveland-Cliffs Inc Long-Term Incentive
Program (“Incentive Program”) and the Participant Grant and Agreement Year 2006 (“Agreement”), I
hereby designate the person(s) indicated below as my beneficiary(ies) to receive any payments under
the Incentive Program and Agreement after my death.

Name

Address

Social Sec. Nos. of Beneficiary(ies)

Relationship(s)

Date(s) of Birth

In the event that the above-named beneficiary(ies) predecease(s) me, I hereby designate the
following person(s) as beneficiary(ies):

Name

Address

Social Sec. Nos. of Beneficiary(ies)

Relationship(s)

Date(s) of Birth

I hereby expressly revoke all prior designations of beneficiary(ies), reserve the right to
change the beneficiary(ies) herein designated and agree that the rights of said beneficiary(ies)
shall be subject to the terms of the Incentive Program and Agreement. In the event that there is
no beneficiary living at the time of my death, I understand that the payments under the Incentive
Program and Agreement will be paid to my estate.

Date (Signature)

(Print or type name)

7EX-10.(b)

AMENDMENT NO. 1

TO

LONG-TERM INCENTIVE PROGRAM

This Amendment No. 1 is executed as of the date set forth below by Cleveland-Cliffs Inc (the
“Company”);

WITNESSETH:

WHEREAS, effective May 8, 2000, the Company established the Cleveland-Cliffs Inc Long-Term
Incentive Plan (the “Incentive Plan”) in order to attract and retain executives and other key
employees of the Company and its subsidiaries and to align their interests directly with the
interests of the shareholders of the Company by increasing the Company’s long-term value and
exceeding the performance of peer companies; and

WHEREAS, the committee (or subcommittee) established under the terms of the 1992 Incentive
Equity Plan (the “Committee”) has the right to amend the Incentive Plan pursuant to Section 8.5;
and

WHEREAS, the Committee authorized that the Incentive Plan be amended in order to eliminate the
maximum amount that may be paid from the Incentive Plan; and

WHEREAS, the Committee authorized that any such amendment to the Incentive Plan may be
executed by any member of the Committee;

NOW, THEREFORE, pursuant to Section 8.5 of the Incentive Plan, the Incentive Plan is hereby
amended, effective January 1, 2006, as follows:

(1) Paragraph (iii) of Section 5.3(b) of the Incentive Plan is hereby amended by the deletion
of said Paragraph in its entirety and the substitution in lieu thereof of a new Paragraph (iii) to
read as follows:

“(iii) Each grant shall specify the Management Objectives, with respect to the
Performance Shares, that are to be achieved by the Company and a required minimum
level of achievement below which no payment of Performance Shares will be made.
Each grant of Performance Shares shall set forth a formula for determining the
amount of any payment to be made if performance is at or above the required minimum
level.”

(2) Section 5.4 of the Incentive Plan is hereby amended by the deletion of Subsection (e) in
its entirety.

(3) Section 7.4 of the Incentive Plan is hereby amended by the deletion of said Section in its
entirety and the substitution in lieu thereof of a new Section 7.4 to read as follows:

“7.4 Change in Control. Except as may otherwise be determined in accordance with the
Participant’s Grant and Agreement, in the event a Change in Control occurs before completion of an
Incentive Period(s), all Performance Shares or Retention Units granted to a Participant shall
immediately become Performance Shares Earned in the case of Performance Shares, and the value of
which shall be paid in cash within 10 days of the Change in Control, and Retention Units shall
become immediately nonforfeitable and be paid in cash within 10 days.”

IN WITNESS WHEREOF, the Committee, by a duly authorized member, has executed this Amendment
No. 1 as of this 8th day of May, 2006.

By:/s/ F. R. McAllister

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