Document:

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                                                                   Exhibit - 4.9

                      JOHN HANCOCK FUNDS, INC. GROUP TRUST

                              GROUP TRUST AGREEMENT

This Group Trust Agreement, dated as of April 1, 1995, is entered into by and
between John Hancock Funds, Inc. ("JHFI"), and Investors Bank & Trust Company
(the "Trustee").

ARTICLE 1.  PURPOSE: AUTHORITY

(1.1) The purpose of this Trust is to serve as the agency to fund benefits and
to purchase annuities for those defined contribution pension, benefit and profit
sharing plans qualified under Sections 401(a) or 401(a) and 401(k) of the
Internal Revenue Code of 1986 (the "Code") which adopt this Trust pursuant to
Section 3 below (each a "Participating Plan"). It is intended that this Trust be
exempt from taxation under Section 401(a) of the Code, and that it qualify as a
"group trust" under applicable Internal Revenue Service rules and regulations.
Therefore, this Trust is only open to tax qualified defined contribution plans
as described above that are "full service clients" of JHFI and are otherwise
acceptable to JHFI. By its execution and delivery of an Adoption Agreement in
the form of Exhibit C hereto, each Participating Plan shall (among other things)
(i) certify that it is so qualified and therefore exempt from federal income
taxation under Section 501(a) of the Code, (ii) agree to provide from time to
time such additional evidence of such qualification as the Trustee, JHFI or John
Hancock may reasonably request, (iii) agree to promptly notify the Trustee, JHFI
and John Hancock if at any time it fails to remain so qualified, and (iv)
incorporate by reference and adopt this Trust as part of such plan.

(1.2) In order to accomplish the purpose hereof, the Trustee is hereby
authorized and directed by each Participating Plan to utilize Contributions made
to the Trust by each Participating Plan to purchase one or more Group Annuity
Contracts to be issued from time to time by the John Hancock Mutual Life
Insurance Company ("John Hancock") substantially in the form of Exhibit A
hereto. The Group Annuity Contracts so purchased will be used to fund the stable
value investment option offered by each Participating Plan to its Participants.

ARTICLE 2.  DEFINITIONS

(2.1) ADMINISTRATIVE SERVICES AGREEMENT - an agreement substantially in the form
of Exhibit B hereto, by and among the Trustee, JHFI and John Hancock Signature
Services, Inc. (as "Servicer"), pursuant to which the Servicer will perform
certain administrative services described therein as agent for and on behalf of
the Trustee.

(2.2) ADOPTION AGREEMENT - an agreement substantially in the form of Exhibit C
hereto entered into by a Participating Plan (acting through its duly authorized
representative) for the purpose of adopting and joining in this Trust. Pursuant
to the provisions of its Adoption Agreement, each Participating Plan will be
entitled to its Pro Rata Share of the Trust Fund, each Participating Plan will
appoint JHFI as its agent for the limited purpose of accepting Confirmation
Letters issued by John Hancock in connection with Group Annuity Contracts, and
John Hancock will acknowledge the beneficial interest of each Participating Plan
in and to the Group Annuity Contracts.

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(2.3) CODE - the Internal Revenue Code of 1986, as amended.

(2.4) CONFIRMATION LETTERS - letters produced quarterly by John Hancock
informing JHFI as agent for the Participating Plans of the interest rate
applicable to Contributions received in a given quarter, as more-fully described
in Section 5.3 below.

(2.5) CONTRIBUTIONS - all sums deposited into the Trust by a Participating Plan.

(2.6) EXPENSES - amounts billed to a Participating Plan, or deducted from
Contributions to the Trust by a Participating Plan (or from earnings thereon),
to compensate the Trustee for its services hereunder and to reimburse the
Trustee for all reasonable expenses incurred hereunder, including without
limitation the fees and expenses of the Servicer under the Administrative
Services Agreement.

(2.7) GROUP ANNUITY CONTRACT - any one of the Group Annuity Contracts issued
from time to time to the Trustee by John Hancock substantially in the form of
Exhibit A hereto.

(2.8) JOHN HANCOCK - John Hancock Mutual Life Insurance Company, a Massachusetts
mutual life insurance company, and the issuer of the Group Annuity Contracts.

(2.9) NET CONTRIBUTIONS - at any time, a Participating Plan's Net Contributions
shall equal the sum of its Contributions, plus all earnings thereon, less all
withdrawals of such Participating Plan from the Trust Fund.

(2.10) PARTICIPANT - any person under a Participating Plan for whom benefits are
funded or annuities are purchased under this Trust.

(2.11) PARTICIPATING PLAN - any profit sharing plan qualified under Sections
401(a) or 401(a) and 401(k) of the Code which adopts this Trust pursuant to
Section 3 below.

(2.12) PRO RATA SHARE - at any time, a Participating Plan's Pro Rata Share shall
equal the ratio of its Net Contributions over the sum of the Net Contributions
of all Participating Plans.

(2.13) SERVICER - John Hancock Signature Services, Inc. or its successor as
Servicer under the Administrative Services Agreement.

(2.14) TRUST - the Trust created by this Agreement.

(2.15) TRUSTEE - the Investors Bank & Trust Company, not in its individual
capacity but solely as Trustee hereunder, and any successor trustee hereunder.

(2.16) TRUST FUND-all assets held by the Trustee in trust pursuant to this
Agreement, which assets shall consist of the Group Annuity Contracts and the
rights thereunder.

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ARTICLE 3.  ADOPTION OF TRUST: INTEREST IN THE FUND

(3.1) Any pension, benefit or profit sharing plan qualified under Sections
401(a) or 401(a) and 401(k) of the Code and exempt from federal income taxation
by reason of Section 501(a) of the Code may (acting through its duly authorized
representative) join and adopt this Trust by executing and delivering to (or as
instructed by) the Trustee an Adoption Agreement in the form of Exhibit C
hereto. Upon execution and delivery thereof, the adopting plan shall become a
Participating Plan hereunder, entitled to the benefits of the Trust, including
the right to participate in all of the assets of the Trust Fund (net of all
Expenses), to the extent of its Pro Rata Share.

(3.2) A Participating Plan's Pro Rata Share (as defined in Section 2.12 above)
shall be determined by the Trustee as of the close of business on each day that
the Trustee is open for business. At any date, a Participating Plan's interest
in the Trust Fund shall be equal to its then current Pro Rate Share of all
assets (net of Expenses) held in the Trust Fund.

(3.3) A Participating Plan shall have the right to make Contributions to the
Trust from time to time, and shall have the right to withdraw amounts from the
Trust Fund from time to time, all as more fully described in Sections 5 and 6
below. To the extent that the Trust Fund consists of one or more Group Annuity
Contracts, however, a Participating Plan's interest in the Trust Fund (and its
ability to withdraw amounts attributable to its interest hereunder) will be
limited by and subject to all of the terms and conditions of such Group Annuity
Contracts.

(3.4) Pursuant to the provisions of each Adoption Agreement, John Hancock (as
issuer of the Group Annuity Contracts) will acknowledge the beneficial interest
of each Participating Plan (to the extent of its Pro Rata Share of the Trust
Fund) in and to each Group Annuity Contract outstanding from time to time; will
agree to make payments under such Group Annuity Contracts directly to the
Participating Plan (to the extent of its Pro Rata Share, net of Expenses) if
directed to do so by such Participating Plan; and will waive any defense or
right of set off that it may have against such payment as a result of any claim
that it may have against the Trustee, including without limitation any claim
arising out of any act or omission of the Trustee (or any agent of the Trustee),
reserving however its right to proceed independently against the Trustee (or its
agents).

ARTICLE 4.    DECLARATION OF TRUST: USE OF TRUST ASSETS

(4.1) The Trustee hereby covenants and agrees to hold in trust, for the benefit
of all Participating Plans and their respective Participants, all Contributions,
all earnings thereon, and all Group Annuity Contracts purchased with such
Contributions or earnings - all upon and subject to the terms and conditions of
this Agreement.

(4.2) The Trustee hereby agrees to employ all available Contributions and all
available earnings thereon (net of Expenses and subject to any withdrawals by a
Participating Plan as may be permitted hereunder) to purchase Group Annuity
Contracts (and only Group Annuity Contracts), from time to time, it being
currently intended that the Trustee will generally purchase one Group Annuity
Contract each calendar quarter to the extent that funds are available for such
purpose, all as more fully described in the Adoption Agreement. In the exercise
of its powers

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and duties to purchase Group Annuity Contracts, the Trustee shall neither
exercise nor be deemed to exercise any investment discretion. and shall neither
provide nor be deemed to provide investment advice (and has no authority or
responsibility to do so).

(4.3) Notwithstanding any other provision of this Agreement, no part of the
Trust Fund shall ever be used for or diverted to purposes other than (i) the
exclusive benefit of the Participating Plans and their respective Participants,
and (ii) defraying Expenses hereunder.

ARTICLE 5. CONTRIBUTIONS TO THE TRUST FUND

(5.1) All Contributions to the Trust Fund shall be made by check or by wire
transfer in U.S. dollars to the Trustee or its agent, all as more fully set
forth in the Adoption Agreement, and shall be applied as provided in Section 4.2
above. Neither the Trustee nor its agent, however, shall be required to verify
that amounts received are in accordance with the terms of the Participating
Plan's governing documents.

(5.2) If Contributions are made to the Trust Fund under a mistake of fact or if
a deduction for such Contributions is disallowed under the Code, an amount equal
to such Contributions may be paid to the Participating Plan upon written notice
thereof, to the extent permitted by the Participating Plan's governing
documents. The Trustee and its agent shall be entitled to act upon any such
notice without independent investigation and without incurring any liability on
account of any action taken or omitted pursuant to such notice.

(5.3) Pursuant to the terms of each Adoption Agreement, JHFI shall be appointed
the agent for each Participating Plan for the limited purpose of (a) providing
quarterly estimates to John Hancock of the amount of each Participating Plan's
anticipated Net Contributions, and (b) accepting from John Hancock quarterly
Confirmation Letters quoting the interest rate applicable to Contributions
received during the immediately following calendar quarter (which rate shall be
based upon such estimates and may be adjusted at the end of such calendar
quarter in accordance with the terms of the Group Annuity Contracts if the
aggregate amount of Net Contributions actually made by all Participating Plans
varies from the estimates).

ARTICLE 6. PAYMENTS FROM THE TRUST FUND: TERMINATION OF PARTICIPATION

(6.1) To the extent of its Pro Rata Share, and to the extent that funds are
available under the Group Annuity Contracts, a Participating Plan may request a
withdrawal of funds from the Trust Fund from time to time in order to make
distributions to its Participants, to purchase fixed annuities under a Group
Annuity Contract, or for other proper purposes of the plan in accordance with
such Participating Plan's governing documents. Upon receipt of any such request,
the Trustee (or its agent) shall inform John Hancock and shall promptly
liquidate and pay over to such Participating Plan the amount of the requested
withdrawal, which amount shall not exceed its Pro Rata Share of the Trust Fund
(net of any unpaid Expenses, and net of any expenses incurred in the liquidation
of such assets); subject, however, to the terms of the Group Annuity Contracts,
it being expressly understood that under certain circumstances (described in the
Group

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Annuity Contracts) the transfer or withdrawal of funds thereunder may be delayed
or may be subject to adjustments or additional expenses. In no event shall the
Trust, the Trustee or JHFI be liable for interest or any other payment proceeds
of any withdrawal from the date of withdrawal to the date of payment. The
Trustee may delay payment on any withdrawal if the Trustee or JHFI determines
that such delay is reasonably necessary for reasons (including but not limited
to) related to court or government directives, orders, etc. or other causes
reasonably beyond the control of the Trustee.

(6.2) In the event that a Participating, Plan desires to terminate its
participation in the Trust, it shall so notify the Trustee (or its agent). Upon
receipt of any such notice, the Trustee (or its agent) shall promptly inform
John Hancock. Such Participating Plan shall be entitled to receive an amount in
U.S. dollars equal to its Pro Rata Share (net of any unpaid Expenses, and net of
any expenses incurred in the liquidation of such assets) of the Trust Fund
assets, it being understood however that the withdrawal and distribution of
assets held under the Group Annuity Contracts shall be governed by the terms of
such Group Annuity Contracts. Upon distribution to or as directed by such
Participating Plan of its Pro Rata Share of the Trust Fund, such Participating
Plan shall cease to be a Participating Plan.

(6.3) Under certain circumstances described in the Group Annuity Contracts,
including the failure of a Participating Plan to be or remain qualified under
the Code. John Hancock may terminate such Participating Plan's account under the
Group Annuity Contracts and transfer the balance thereof to the Trustee on
behalf of the Participating Plan, subject to such adjustments as may be
permitted under the Group Annuity Contracts. In such event, the Trustee shall
forward the sums so received to (or as directed by) the affected Participating
Plan and such Participating Plan shall cease to be a Participating Plan.

ARTICLE 7. NATURE AND VALUATION OF TRUST FUND: TRUST INTERESTS NOT ASSIGNABLE

(7.1) Each Participating Plan shall have a beneficial interest in the Trust Fund
and in all assets thereof equal to its Pro Rata Share. No Participating Plan
(and no Participant thereof), however, shall own any particular asset held in
the Trust Fund or any part thereof.

(7.2) The value of the Trust Fund on any given date shall be the aggregate value
of each outstanding Group Annuity Contract (determined in accordance with the
provisions thereof) as of such date.

(7.3) Notwithstanding any other provision of this Agreement, the interest of a
Participating Plan in this Trust (or in the Trust Fund) shall not be
transferable or assignable.

ARTICLE 8. MAINTENANCE OF RECORDS: REPORTS: ROLE OF SERVICER

(8.1) The Servicer, on behalf of the Trustee, shall maintain records of all
Trust Fund assets; shall maintain records of account for each Participating
Plan, which shall include a record of each Participating Plan's Contributions,
earnings, withdrawals, Net Contributions, and Pro Rata Share; all as set forth
in and in accordance with the terms of the Administrative Services

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Agreement. Each Participating Plan, by the execution and delivery of its
Adoption Agreement, agrees that the Servicer (and not the Trustee) shall be
solely responsible for the accuracy and completeness of such records.

(8.2) The Servicer shall furnish to each Participating Plan a quarterly report
showing (among other things) such Participating Plan's Net Contributions
(expressed in U.S. dollars) as of the close of business on the last business day
of such quarter. Such reports shall be prepared and distributed no later than 20
business days following the end of each quarter.

(8.3) Pursuant to the terms of the Administrative Services Agreement, in
addition to the record keeping and reporting described above, the Servicer shall
collect and forward all Contributions to the Trust Fund, receive all notices and
other requests from Participating Plans, forward the same to John Hancock (to
the extent that such notices or requests relate to the Group Annuity Contracts),
distribute to Participating Plans (and to their Participants) payments made by
John Hancock to the Trustee pursuant to the Group Annuity Contracts, and serve
as custodian of each Group Annuity Contract.

ARTICLE 9.  THE TRUSTEE

(9.1) The Trustee shall have the following powers and rights, in addition to
those vested in it elsewhere in this Agreement or by law:

         a)       To enter into the Administrative Services Agreement, to
                  perform all of the services to be performed by Servicer
                  thereunder, and to employ the Servicer as its agent for all
                  purposes hereunder and thereunder, provided that the Trustee
                  shall be and remain the legal owner of, and Contract Holder
                  under, each Group Annuity Contract.

         b)       To enter into any Group Annuity Contract.

         c)       To accept each Adoption Agreement.

         d)       To enter into any other contract or relationship, and to take
                  such other action as may be reasonably necessary in
                  furtherance of the purposes of this Trust, as directed by JHFI
                  or with the consent of JHFI.

         e)       To begin, maintain or defend any suit or legal proceeding
                  necessary in connection with the administration of this Trust.

         f)       To employ suitable agents and to employ counsel.

         g)       To settle, compromise or abandon all claims and demands in
                  favor of or against the Trust, with the consent of JHFI;
                  provided, however, that the Trustee shall have the right, in
                  its sole discretion, to settle, compromise or abandon any such
                  suit or legal proceeding (after written notice to JHFI) where
                  it may be adversely affected

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                  by the outcome, individually or as Trustee, or where it is
                  advised i by counsel that such action is required on its part
                  under applicable law.

(9.2) The parties agree, and by executing and delivering an Adoption Agreement
each Participating Plan agrees, that the Servicer is designated as agent of the
Trustee for all Trustee functions under this Agreement, and that the Servicer
(and not the Trustee) shall be responsible therefor; provided however that the
Trustee shall be and remain the legal owner of, and Contract Holder under, each
Group Annuity Contract.

(9.3) The parties agree, and by executing and delivering an Adoption Agreement
each Participating Plan agrees, that John Hancock (and not the Trustee) shall be
solely responsible for making payments and providing benefits under and in
accordance with the terms of the Group Annuity Contracts, and that nothing
contained in this Trust Agreement or in any amendment or supplement hereto shall
in any way enlarge. change, vary or otherwise affect the obligations of John
Hancock under the Group Annuity Contracts.

(9.4) The Trustee shall perform its duties hereunder in accordance with
applicable law and with the care, skill, prudence and diligence under the
circumstances then prevailing as a prudent man acting in a like capacity and
familiar with such matters would use. The Trustee undertakes to perform such
duties and only such duties as are specifically set forth herein and in any
separate written agreement signed by the Trustee and no implied duties,
covenants or obligations (except as implied by any applicable law) shall be read
into this Group Trust Agreement against the Trustee: provided, however, that, to
the extent set forth in section 9.2 herein, the Trustee shall be entitled to
rely on the Servicer to perform the Trustee functions enumerated in the
Administrative Services Agreement. No provision hereof shall require the Trustee
to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to the Trustee. Notwithstanding the foregoing, the
Trustee shall not take any action or omit to take any action that would
adversely affect its qualifications to act as Trustee. The Trustee may rely and
shall be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order or other paper or document reasonably believed by the Trustee to
be genuine and to have been signed or presented by the proper party or parties.

(9.5) The Trustee shall prepare, certify and submit on a timely basis such
returns and reports with respect to the Trust as may be required under the
Employee Retirement Income Security Act of 1974, as amended, the Code or any
other applicable law; provided, however, that the Trustee shall be entitled to
rely upon the Servicer to perform such duties and the parties agree, and by
signing and delivering an Adoption Agreement, each Participating Plan agrees,
that the Servicer is designated as the agent of the Trustee for such duties and
the Servicer (and not the Trustee) shall be solely responsible therefor.

(9.6) The Trustee may resign at any time by giving at least sixty (60) days'
prior written notice to JHFI. JHFI may remove the Trustee at anytime by giving
at least sixty (60) days' prior written notice to the trustee. In either case,
JHFI shall appoint a successor Trustee. Upon the

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resignation or removal of the Trustee and the appointment of a successor
Trustee, the Trustee shall promptly furnish to the successor Trustee and JHFI an
account of its administration of the Trust from the date of its last accounting
(if any). Each successor Trustee will succeed the Trustee without the signing or
filing of any instrument, but a predecessor Trustee shall sign all documents and
do all acts as may be necessary to effect the succession of the successor
Trustee. Each successor Trustee shall have all the powers conferred by the Trust
as if originally named Trustee. No successor Trustee will be liable for the acts
or omissions of a predecessor Trustee, and no predecessor Trustee shall be
liable for the acts or omissions of a successor Trustee.

(9.7) This Trust Agreement shall be binding upon the Trustee, its successors and
assigns. Any corporation which shall, by merger, consolidation, purchase or
otherwise succeed to substantially all of the trust business of a corporation
acting as Trustee shall, upon such succession and without any appointment or
other action by any person, be and become a successor Trustee.

ARTICLE 10.  PAYMENT OF FEES AND EXPENSES: INDEMNIFICATION

(10.1) The Trustee shall receive from JHFI such compensation for its services
hereunder as may be agreed to from time to time by the Trustee and JHFI.

(10.2) All Expenses (including without limitation the fees payable pursuant to
Section 10.1 above, the fees and expenses of the Servicer under the
Administrative Services Agreement, and the reasonable fees and expenses of legal
counsel to the Trustee, if any) may be billed to the Participating Plans (each
according to its Pro Rata Share) or charged to and deducted from the Trust Fund.

(10.3) JHFI shall indemnify and hold the Trustee, in its capacity as trustee
hereunder and individually, and its officers, directors, employees, shareholders
and any person who is deemed to control the Trustee (within the meaning of
Section 15 of the Securities Act of 1933, as amended), each in their capacities
as such and individually, harmless against any and all loss, damage, liability,
claims, demands, disbursements and expenses, including taxes, penalties and
reasonable counsel fees (collectively referred to as a "Claim"), which may be
incurred by reason of the Trustee being trustee hereunder or for any other
reason arising out of or relating to this Group Trust Agreement, the Adoption
Agreements, or any transaction contemplated by such agreements, including but
not limited to the purchase of the Group Annuity Contracts and the offer and
sale of the interests in the Trust to the Participating Plans; provided that the
Trustee (or other indemnified person) shall inform JHFI within a reasonable time
after learning of a Claim, shall provide JHFI an opportunity to defend (and
direct the defense of) any Claim at JHFI's sole expense and shall not settle any
Claim without the prior consent of JHFI. It is further understood that the
distribution by the Trustee (or by the Servicer as agent of the Trustee) of all
or any part of the Trust Fund shall not impair the right of the Trustee (or
other indemnified person) to indemnity, payment and reimbursement as herein
provided. In the event the Trustee (or other indemnified person) makes any
advance at any time to pay or to provide for the payment of any Claim, then the
Trustee (or other indemnified person) shall be entitled, in addition to
reimbursement of the sum so advanced, to interest on the amount of such advances
at the rate charged by The First National Bank of Boston, Boston, Massachusetts,
as its "prime" or "base" rate. The provisions of this section shall continue in
full force and effect notwithstanding the

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termination of the Trust for any reason or the resignation, inability or
incapacity to act or removal of the Trustee.

(10.4) The Trustee acknowledges and agrees that the rights and obligations of
John Hancock are solely those of the issuer of, and are described in, the Group
Annuity Contracts. John Hancock is not responsible for the terms of this
Agreement or for the performance of any party hereunder or under the
Administrative Services Agreement, nor is it a sponsor of this Trust.

ARTICLE 11.  AMENDMENTS: TERMINATION

(11.1) This Trust maybe amended from time to time by a supplement agreement in
writing duly executed by JHFI and the Trustee, and not otherwise; provided that
no amendment shall be effective that would cause this Trust to fail to qualify
under Section 401(a) of the Code.

(11.2) This Trust may be terminated by JHFI in its sole discretion (and shall
terminate upon resignation of the Trustee unless a successor Trustee shall be
appointed as provided in Section 9.6 above) if JHFI determines to discontinue
its sponsorship of this Trust. In such event, JHFI shall notify in writing the
Trustee, the Servicer, John Hancock and each Participating Plan. Within ninety
(90) days after its receipt of such notice, John Hancock will distribute to the
successor funding agencies designated by each Participating Plan such
Participating Plan's Pro Rata Share of the Trust Fund assets held by John
Hancock pursuant to the Group Annuity Contracts, all as provided therein. If at
the end of such ninety (90) day period John Hancock does not receive such a
designation from any Participating Plan, John Hancock may (in its sole
discretion) withdraw the amounts attributable to such Participating Plan (net of
expenses) and may hold such amounts apart from all other monies of the Trust
Fund in a non-interest bearing suspense account pending receipt of designation
of a successor funding agency from such Participating Plan.

ARTICLE 12.  MISCELLANEOUS

(12.1) The Trustee shall be fully protected in acting upon and in conformity
with the advice of counsel with respect to the meaning of this Trust, the
Trustee's powers and duties hereunder, or any other matter relating hereto.

(12.2) In all judicial proceedings affecting the Trust, the Trustee shall be the
only necessary party and may represent JHFI and all persons, natural or legal,
having interests in the Trust. Notwithstanding the foregoing, JHFI may represent
itself in any judicial proceeding affecting the Trust in which it is named as a
party.

(12.3) This Trust is being organized in the Commonwealth of Massachusetts and
shall be maintained at all times as a domestic trust in the United States. To
the extent not superseded by Federal law, the substantive laws (as opposed to
the choice of laws rules) of the Commonwealth of Massachusetts shall be
controlling in all matters relating to this Trust.

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(12.4) In the interpretation of this Agreement, words of the singular shall
include the plural, and words of the plural shall include the singular, when the
context so requires.

(12.5) Notices, accountings and reports given or required to be given by either
party to the other hereunder, may be delivered in person (including by
commercial courier service) or by U.S. mail, postage prepaid and properly
addressed to the last known address of the recipients. If given by mail, the
notice shall be deemed to be received and shall be effective one business day
after deposit with the U.S. Postal Service. Otherwise, the notice shall be
effective when actually received. Notices, reports and other communications to
and from Participating Plans shall be given as provided in the applicable
Adoption Agreement.

(12.6) The Trust created hereby is intended to constitute a qualified tax-exempt
trust under Sections 401(a) and 501(a) of the Code.

(12.7) This Agreement and any amendment or supplement hereto may be executed in
any number of counterparts, each of which shall be deemed an original.

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         In witness whereof, the undersigned parties have caused this Agreement
to be executed as of the day and year first written above.

JOHN HANCOCK FUNDS, INC.

/s/ James A. Bowhers
--------------------------------------
Signature

James A. Bowhers
--------------------------------------
Name

Executive Vice President
--------------------------------------
Title

INVESTORS BANK & TRUST COMPANY, AS TRUSTEE

/s/ Martin J. Sullivan
--------------------------------------
Signature

Martin J. Sullivan
--------------------------------------
Name

Director
--------------------------------------
Title

                                       11<PAGE>   1

                                                               Exhibit (10)-(49)

                                      THE LTV CORPORATION HAS REQUESTED THAT THE
                                    MARKED PORTIONS OF THIS DOCUMENT BE ACCORDED
                                   CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2
                                       UNDER THE SECURITIES EXCHANGE ACT OF 1934

                       PELLET SALE AND PURCHASE AGREEMENT
                       ----------------------------------

         THIS AGREEMENT, entered into, dated and effective as of May 15, 2000
("Agreement"), by and between THE CLEVELAND-CLIFFS IRON COMPANY, an Ohio
corporation ("Iron"), CLIFFS MINING COMPANY, a Delaware corporation ("Mining"),
NORTHSHORE MINING COMPANY, a Delaware corporation ("Northshore"), (Iron, Mining
and Northshore being collectively referred to herein as "Cliffs"), and LTV STEEL
COMPANY, INC., a New Jersey corporation ("LTV").

                                    RECITALS
                                    --------

         WHEREAS, Cliffs desires to sell to LTV and LTV desires to purchase from
Cliffs certain quantities of grades of iron ore standard pellets as follows: (i)
such grades of iron ore standard pellets being those produced at the Empire Iron
Mining Partnership iron ore pellet plant ("Empire Pellets"), located in Palmer,
Michigan ("Empire Mine"); (ii) such grades of iron ore standard pellets being
those produced at the Hibbing Taconite Company Joint Venture iron ore pellet
plant ("Hibbing Pellets"), located in Hibbing, Minnesota ("Hibbing Mine"); (iii)
such grades of iron ore standard pellets being those produced at the Northshore
Mining Company iron ore pellet plant ("Northshore Pellets"), located in Silver
Bay, Minnesota ("Northshore Mine"); or (iv) such other pellet grades as may be
mutually agreed to by the parties hereto (such Empire Pellets, Hibbing Pellets,
Northshore Pellets, and other mutually agreed upon pellets collectively being
referred to herein as "Cliffs Pellets"), all on the conditions contained herein.

         NOW, THEREFORE, in consideration of the mutual covenants hereinafter
set forth, Iron, Mining, Northshore and LTV agree as follows:

<PAGE>   2

SECTION 1 - DEFINITIONS.
------------------------

         The terms quoted in the above parentheses of the first introductory
paragraph of this Agreement and the WHEREAS clause, other terms quoted
throughout this Agreement, and the terms defined below in this Section 1 shall
have the meanings assigned to them for purposes of this Agreement. Attached as
Appendix I to this Agreement is a locator list of all defined terms used
throughout the Agreement.

         (a). The words "LTV's Annual Equity Entitlements", as used herein,
shall mean for any year the total tonnage of pellets which LTV or any subsidiary
or affiliate of LTV is obligated or otherwise entitled to purchase, acquire or
otherwise receive in any year by reason of LTV's direct or indirect ownership
interest, as of January 1, 2000, in the (i) Empire Mine and (ii) LTV Steel
Mining Company, a subsidiary of LTV, iron ore mine and pellet plant, located in
Hoyt Lakes, Minnesota, and which tonnage is actually received by LTV or any
subsidiary or affiliate of LTV.

         (b). The words "[* * * *] Annual Equity Entitlements", as used herein,
shall mean for any year the total tonnage of pellets which [* * * *] or any
subsidiary or affiliate of [* * * *] is obligated or otherwise entitled to
purchase, acquire or otherwise receive in any year by reason of [* * * *] direct
or indirect ownership interest, as of January 1, 2000, [* * * *], and which
tonnage is actually received by [* * * *]or any subsidiary or affiliate of [* *
* *] and is subsequently sold to LTV in that year.

         (c). The words "LTV's Annual Excess Pellet Tonnage Requirements", as
used herein, shall mean for any year a tonnage amount equal to: (i) LTV's total
annual pellet tonnage requirements required for consumption in LTV's iron and
steel making facilities in any year at LTV's Indiana Harbor Works, located in
Indiana Harbor, Indiana ("Indiana

                                       2

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<PAGE>   3

Harbor Works"), and LTV's Cleveland Works, located in Cleveland, Ohio
("Cleveland Works"), less (ii) LTV's Annual Equity Entitlements.

         (d). The word "pellets", as used herein, shall mean iron-bearing
products obtained by the pelletizing of iron ore or iron ore concentrates,
suitable for making iron in blast furnaces.

         (e). The word "ton", as used herein, shall mean a gross ton of 2,240
pounds avoirdupois natural weight.

         (f). The word "year", as used herein, shall mean a calendar year
commencing on January 1 and ending December 31.

SECTION 2 - SALE AND PURCHASE/TONNAGE.
--------------------------------------

         (a). During the year 2000, Cliffs shall sell and deliver to LTV and LTV
shall purchase and receive from Cliffs and pay for a tonnage of Cliffs Pellets
which tonnage shall be equal to 100% of LTV's Annual Excess Pellet Tonnage
Requirements for such year. LTV estimates that for the year 2000 LTV's Annual
Excess Pellet Tonnage Requirements will be 600,000 tons and Cliffs agrees to
sell Empire Pellets to satisfy LTV's Annual Excess Pellet Tonnage Requirements
for the year 2000.

         (b). During the year 2001, Cliffs shall sell and deliver to LTV and LTV
shall purchase and receive from Cliffs and pay for a tonnage of Cliffs Pellets
which tonnage shall be equal to 100% of: (i) LTV's Annual Excess Pellet Tonnage
Requirements for such year, less (ii) [* * * *] Annual Equity Entitlements. In
the event in year 2001 LTV's Annual Excess Pellet Tonnage Requirements would be
less than 2,700,000 tons, then LTV shall purchase and receive from Cliffs and
pay for a tonnage of Cliffs Pellets equal

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<PAGE>   4

to 63% of LTV's Annual Excess Pellet Tonnage Requirements in 2001.

         (c). During each of the years 2002 through 2009, and each year
thereafter as long as this Agreement remains in effect, Cliffs shall sell and
deliver to LTV and LTV shall purchase and receive from Cliffs and pay for a
tonnage of Cliffs Pellets which tonnage shall be equal to 100% of: (i) LTV's
Annual Excess Pellet Tonnage Requirements for each such year, less (ii) [* * *
*] Annual Equity Entitlements.

         (d). LTV currently operates two blast furnaces at the Indiana Harbor
Works and three blast furnaces at the Cleveland Works. In the event LTV
permanently shuts down one or more of LTV's currently operating blast furnaces,
LTV agrees to use its reasonable best efforts to keep the pellet purchase
percentage, effective beginning in year 2002, between Cliffs and [* * * *] at a
percentage consistent with the percentage of pellets LTV purchased from Cliffs
and [* * * *] when LTV was operating five blast furnaces, provided that this
Section 2(d) shall not be deemed to affect the agreement set forth in the first
sentence of Section 4(b)(iii) below, which shall continue to be applicable in
the event of the permanent shutdown of one or more blast furnaces.

SECTION 3 - QUALITY.
--------------------

         (a). Cliffs Pellets when loaded for shipment will be consistent with
the typical and guaranteed limits analysis characteristics set forth in Exhibit
1. The typical analysis and standard deviations in the specifications set forth
in Exhibit 1 shall be determined by using the vessel-by-vessel analysis for all
vessels shipped during 1999 of Empire Pellets from the Port of Escanaba,
Northshore Pellets from the Port of Silver Bay, and

                                       4

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<PAGE>   5

Hibbing Pellets not screened prior to vessel loading at the Port of Allouez. The
LTV/Cliffs Joint Continuous Improvement Team shall review the vessel-by-vessel
analysis for 1999 shipments in order to verify the specifications set forth in
Exhibit 1. Twice each year the vessel specification and calculated statistical
performance shall be reviewed by the LTV/Cliffs Joint Continuous Improvement
Team, and Cliffs and LTV may, by mutual agreement, update the pellet
specifications set forth in Exhibit 1. LTV shall be entitled, at its expense, to
have the vessel analysis data that is used to determine the specifications set
forth in Exhibit 1 audited by Cliffs' independent auditors or by independent
auditors mutually acceptable to Cliffs and LTV.

         (b). In the event the monthly average vessel analysis exceeds one
standard deviation as set forth in Exhibit 1, Cliffs will take such actions as
shall be necessary to achieve specification conformity. If specification
conformity cannot be achieved, LTV and Cliffs shall negotiate in good faith to
determine what actions or remedies, if any, are appropriate.

         (c). If any two vessel shipments made during any calendar month have
analysis that exceeds the guaranteed limits in the specifications set forth in
Exhibit 1, LTV may refuse any subsequent vessel shipments during that calendar
month, and LTV shall not be required to accept any subsequent shipments until
Cliffs has taken action to remedy the non-conformity so that future shipments
will be within the analysis that meets the guaranteed limits in such
specifications. If more than two vessel shipments made during any calendar month
have analysis that exceeds such guaranteed limits, Cliffs and LTV shall
negotiate an appropriate cost adjustment (if any) for the cargoes in

                                       5

<PAGE>   6

excess of the first cargo that exceeded the guaranteed limits, based upon the
additional costs (if any) to LTV associated with the quality specifications in
the additional vessel shipments made during that calendar month that exceeded
such guaranteed limits.

SECTION 4 - NOTIFICATION AND NOMINATION.
----------------------------------------

         (a). With respect to the tonnage of Cliffs Pellets to be purchased by
LTV for each of the years 2001 through 2009, as provided in Section 2, on or
before November 1 of each of the years prior to the years above, LTV shall
notify Cliffs in writing of LTV's preliminary tonnage of LTV's Annual Excess
Pellet Tonnage Requirements which LTV shall purchase from Cliffs. Such
notification shall include: (i) LTV's Annual Operating Plan for the following
year detailed by months, as such Annual Operating Plan relates to LTV's planned
monthly consumption of all pellets for such year; (ii) the tonnage of pellets
which LTV expects to receive in the following year from LTV's Annual Equity
Entitlements; (iii) the tonnage of pellets which LTV expects to receive in the
following year from [* * * *] Annual Equity Entitlements; (iv) the tonnage of
pellets which LTV expects to purchase in the following year from Cliffs; (v)
LTV's expected total pellet inventory as of December 31 for the then current
year; and (vi) LTV's planned total pellet inventory on December 31 for the
following year.

         (b). With respect to the tonnage of Empire Pellets, Hibbing Pellets and
Northshore Pellets which Cliffs will have available for sale to LTV, on or
before December 31 of each year prior to the years above, Cliffs shall notify
LTV in writing as to the tonnage of Empire Pellets, Hibbing Pellets and
Northshore Pellets which Cliffs has available for sale to LTV, which tonnage
shall equal (i) LTV's Annual Excess Pellet

                                       6

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<PAGE>   7

Tonnage Requirements for such year, less (ii) [* * * *] Annual Equity
Entitlements. As relates to LTV's Cleveland Works, Cliffs understands that it is
the desire of LTV to maximize the tonnage of Hibbing Pellets delivered by Cliffs
for LTV's Cleveland Works and to have as much as possible of the non-Hibbing
Pellet tonnage delivered by Cliffs for LTV's Cleveland Works be Northshore
Pellets.

                  (i). Cliffs shall be permitted to annually sell Empire Pellets
         to meet all of LTV's Annual Excess Pellet Tonnage Requirements which
         LTV requires specifically for LTV's Indiana Harbor Works less [* * * *]
         Annual Equity Entitlements.

                  (ii). Cliffs shall be permitted to annually sell up to [* * *
         *] tons of Empire Pellets to meet LTV's Annual Excess Pellet Tonnage
         Requirements which LTV requires specifically for LTV's Cleveland Works;
         however, in such case, Cliffs will use its reasonable best efforts to
         minimize the tonnage of Empire Pellets for LTV's Cleveland Works.

                  (iii). Beginning in the year 2002, Cliffs will sell LTV [* * *
         *] equity share of annual production of Hibbing Pellets from the
         Hibbing Mine, estimated at [* * * *] tons annually. Cliffs will use
         commercially reasonable efforts to sell additional Hibbing Pellets to
         LTV so that the Hibbing Pellets supplied to LTV total [* * * *] tons
         annually, but any such additional tons will be supplied by Cliffs to
         LTV only on the condition that the costs to Cliffs in acquiring the
         additional tons in any year does not exceed [* * * *] of Cliffs'
         estimated sales price per iron unit (as calculated under Section 5) for
         Hibbing Pellets sold to LTV during the applicable

                                       7

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<PAGE>   8

         year under this Agreement.

         (c). With respect to LTV's Annual Excess Pellet Tonnage Requirements as
provided for in Section 4(a) above, LTV shall notify Cliffs by the 10th day of
each month for the year in determination: (i) LTV's actual consumption of all
pellets for the previous month, and (ii) LTV's planned monthly consumption of
all pellets for the balance of the year. In the first month's notice of each
such year, as provided for under this Section (c), LTV shall also advise Cliffs
of LTV's actual total pellet inventory as of December 31 for the previous year.

         (d). If during the course of the year, LTV's Annual Excess Pellet
Tonnage Requirements decrease from LTV's preliminary nomination provided
pursuant to Section 4(a) above, then the tonnage of Cliffs Pellets which LTV
shall purchase from Cliffs shall be reduced by an amount equal to the shortfall
of the actual pellet consumption versus the nominated pellet consumption, with
LTV using its reasonable best efforts to maintain relative pellet purchase
percentages as between Cliffs and [* * * *]. In addition, LTV's Annual Excess
Pellet Tonnage Requirements shall not be modified so as to change LTV's planned
total pellet inventory at the end of the then current year unless such
modification is mutually agreed to by Cliffs.

         (e). If, during the course of the year, LTV's Annual Excess Pellet
Tonnage Requirements increase from LTV's preliminary nomination provided
pursuant to Section 4(a) above, then LTV shall notify Cliffs in writing of any
such increase in LTV's Annual Excess Pellet Tonnage Requirements. Cliffs shall
use its reasonable best efforts to supply such increased tonnage and shall
advise LTV in writing within fifteen (15) days of

                                       8

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<PAGE>   9

receipt of LTV's notice as to Cliffs' ability to supply all or any portion of
such increased tonnage, which Cliffs shall sell and LTV shall purchase as
provided for in Cliffs' notice at the prices provided for in this Agreement. In
the event Cliffs cannot supply any portion of such increased tonnage, LTV and
Cliffs shall work together and use their joint reasonable best efforts to
attempt to procure such additional tonnage for LTV at the lowest cost
practicable.

SECTION 5 - PRICE AND ADJUSTMENTS.
----------------------------------

         (a)(i). The price for the Hibbing Pellets sold and purchased in each of
the years 2000 and thereafter under Section 2 at the Port of Allouez, Wisconsin,
shall be based on the 1999 base price of [* * * *] iron unit, based on actual
natural iron content, f.o.b. vessel, Port of Allouez, Wisconsin ("1999 adjusted
Hibbing price per iron unit") (the 1999 adjusted Hibbing price [* * * *] based
on natural iron content of 64.50%), which 1999 adjusted Hibbing price per iron
unit shall then be adjusted, up or down, in the year 2000 and each year
thereafter by an amount as determined in accordance with Section [* * * *]
below.

         (ii). The price of the Northshore pellets sold and purchased in each of
the years 2000 and thereafter under Section 2 at the Port of Silver Bay,
Minnesota, shall be based on the 1999 base price of [* * * *] iron unit, based
on actual natural iron content, f.o.b. vessel, Port of Silver Bay, Minnesota
("1999 adjusted Northshore price per iron unit") (the 1999 adjusted Northshore
price [* * * *] based on natural iron content of 63.73%), which 1999 adjusted
Northshore price per iron unit shall then be adjusted, up or down, in the year
2000 and each year thereafter by an amount as determined in

                                       9

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<PAGE>   10

accordance with Section [* * * *] below.

         (b). In order to determine the adjusted price to be paid each year for
the [* * * *] Pellets and [* * * *] Pellets, as provided for under Sections [* *
* *] and [* * * *]:

                  (1) [* * * *]

                           (A) [* * * *]

                                    (x) [* * * *]
                                     -

                                    (y) [* * * *]
                                     -

         [* * * *]
         =========

                           (B)  [* * * *]

[* * * *]
=========

                           (C). [* * * *]

                                    (x) [* * * *]
                                     -

                                    (y) [* * * *]
                                     -

         [* * * *]
         =========

                           (D). [* * * *]

                                    (x) [* * * *]
                                     -

                                    (y) [* * * *]
                                     -

                  (2) [* * * *]

                  (3) [* * * *]

         (c). The price for the [* * * *] Pellets sold and purchased in each of
the years 2000 and thereafter under Section [* * * *]:

                  (1) [* * * *]

                                       10

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<PAGE>   11

                  (2) [* * * *]

                           (i) [* * * *]

                                    1) [* * * *]

                                    2) [* * * *]

                           (ii) [* * * *]

                                    3) [* * * *]

                                    4) [* * * *]

                  (3) [* * * *]

                  (4) [* * * *]

                  (5) [* * * *]

                  (6) [* * * *]

         (d). [* * * *]

         (e)(i). The price for all tons sold by Cliffs to LTV shall be based on
actual natural iron content.

                  (ii). All prices are stated in U.S. dollar values.

         (f). Attached as Exhibit 3 is an example of the adjustment formula
applying the provisions of Sections 5(a) and (b); attached as Exhibit 4 is an
example of the adjustment formula applying the provisions of Section 5(c), and
attached as Exhibit 5 is an example of the adjustment formula applying the
provisions of Section 5(d).

SECTION 6 - PAYMENTS AND ADJUSTMENTS.
-------------------------------------

         (a)(i). Cliffs shall send LTV invoices in year 2000 for the Cliffs
Pellets purchased by LTV in year 2000. LTV shall pay Cliffs all amounts due for
the Cliffs Pellets

                                       11

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AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.
<PAGE>   12

purchased in year 2000 [* * * *].

         (ii). For the years 2001 and thereafter, Cliffs shall send LTV a
statement at the end of each month setting forth the actual tonnage of Empire
Pellets delivered during such month at the Port of Escanaba or the Port of
Marquette, for the actual tonnage of Hibbing Pellets delivered during such month
at the Port of Allouez, and for the actual tonnage of Northshore Pellets
delivered during such month at the Port of Silver Bay, as the case may be. For
the years 2001 and thereafter, Cliffs shall estimate the total amount due from
LTV for the contract year based upon LTV's preliminary nomination and
adjustments under Section 4, the estimated quantity of each grade of Cliffs
Pellets being purchased by LTV, and the estimated price under Section 5. This
total amount shall be divided by [* * * *] and LTV shall make equal monthly
payments [* * * *] on the 15th of each month beginning with [* * * *] of the
then current year through [* * * *] of the following year. The [* * * *] payment
will be further adjusted to reflect the actual pellet tonnage purchased by LTV
for the preceding contract year.

         (b). On or before [* * * *] in the year following commencement of
deliveries hereunder, or on such later date as may be fixed by mutual agreement
of Cliffs and LTV, Cliffs will furnish LTV in writing the [* * * *] cost
adjustments under Sections 5(b)(1)(A) and 5(b)(1)(B) respectively, and LTV will
furnish Cliffs in writing the actual [* * * *] under Section 5(c)(5), and Cliffs
shall prepare an invoice reflecting the final adjustments, including any
adjustment for the actual natural iron content of the Cliffs Pellets sold to
LTV, for the preceding year, if any, on the deliveries to LTV for the preceding
year, and any overpayment by LTV or balances due from LTV in connection

                                       12

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<PAGE>   13

with such year's deliveries shall be promptly adjusted by cash payment [* * * *]
within 30 days of the invoice date.

         (c). In the event LTV shall fail to make payment when due of all
amounts, Cliffs, in addition to all other remedies available to Cliffs in law or
in equity, shall have the right, but not the obligation, to withhold further
performance by Cliffs under this Agreement until all claims Cliffs may have
against LTV under this Agreement are fully satisfied.

         (d).     All payments shall be made in U.S. dollars.

SECTION 7 - SAMPLING AND ANALYSIS.
----------------------------------

         (a). All pellet sampling procedures and analytical tests conducted on
Cliffs Pellets sold to LTV to demonstrate compliance with typical specifications
and guaranteed limits shall be performed on each pellet vessel shipment. Test
methods to be used shall be the appropriate ASTM or ISO standard methods
published at the time of testing or the customary procedures and practices
previously furnished by Cliffs to LTV, or any other procedures and practices
that may be mutually agreed to by Cliffs and LTV. LTV may, at any time and from
time to time through one or more authorized

                                       13

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AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

<PAGE>   14

representatives, be present during production, loading, or to observe sampling
and analysis of pellets being processed for shipment to LTV.

         (b) The LTV/Cliffs Joint Continuous Improvement Team shall establish
and maintain a process control program to statistically track and monitor pellet
production and shipments. LTV reserves the right to conduct quality audits with
the producers at the producers' plants on an annual basis or more frequently in
connection with a nonconforming quality situation.

         (c) Cliffs shall use reasonable best efforts to report shipment
analysis prior to vessel arrival at LTV's various lower lake docks via personal
computer entries on LTV's computer host network. It is understood that this may
not be practical for shipments from the Port of Escanaba to the Indiana Harbor
Works. In the event data entry problems occur, Cliffs shall promptly fax or
phone the vessel shipment data.

SECTION 8 - DELIVERY.
---------------------

         (a). Cliffs, through Iron, shall deliver to LTV the annual tonnage of
Empire Pellets, f.o.b. vessel at the Port of Escanaba, Michigan, or the Port of
Marquette, Michigan, and title and all risk of loss, damage or destruction shall
pass to LTV at the time of discharge of the Empire Pellets from the loading
devices at the respective Port into the vessel.

         (b). Cliffs, through Mining, shall deliver to LTV the annual tonnage of
Hibbing Pellets, f.o.b. vessel at the Port of Allouez, Wisconsin, and title and
all risk of loss, damage or destruction shall pass to LTV at the time of
discharge of the Hibbing Pellets from the loading devices at the Port into the
vessel.

                                       14
<PAGE>   15

         (c). Cliffs, through Northshore, shall deliver to LTV the annual
tonnage of Northshore Pellets, f.o.b. vessel at the Port of Silver Bay,
Minnesota, and title and all risk of loss, damage or destruction shall pass to
LTV at the time of discharge of the Northshore Pellets from the loading devices
at the Port into the vessel.

SECTION 9 - SHIPMENTS.
----------------------

         Shipments of Cliffs Pellets will be in approximately equal amounts over
the nine- month period of April through December each year during the term of
this Agreement, unless otherwise mutually agreed.

SECTION 10 - WEIGHTS.
---------------------

         (a) Except as set forth in Section 10(b) below, vessel bill of lading
weight determined by certified railroad scale weights or certified belt scale
weights in accordance with the procedures in effect from time to time at each of
the loading ports shall be accepted by the parties as finally determining the
amount of Cliffs Pellets delivered to LTV pursuant to this Agreement.

         (b) LTV shall have the right to draft survey vessels at the loading
port at its expense. If the vessel bill of lading weight is more than [* * * *]
higher or more than [* * * *] lower than the draft survey weight, then the draft
survey weight shall be the weight used in calculating the value of the cargo.

                                       15

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<PAGE>   16

SECTION 11 - EMPLOYMENT OF VESSELS.
-----------------------------------

         LTV assumes the obligation for arranging and providing appropriate
vessels for the transportation of the Cliffs Pellets delivered by Cliffs to LTV
hereunder. LTV shall arrange and provide for ore carrier or bulk carrier type
vessels suitable in all respects to enter, berth at and leave the loading ports
and suitable for the loading and mooring facilities at the loading ports. Cliffs
shall arrange for suitable pellet loading facilities at the loading ports.

SECTION 12 - JOINT CONTINUOUS IMPROVEMENT TEAM.
-----------------------------------------------

         LTV and Cliffs shall form a Joint Continuous Improvement Team to
address technical, quality, communication, transportation, and other cost
savings opportunities that pertain to Cliffs' sale and LTV's purchase of Cliffs
Pellets.

SECTION 13 - WARRANTIES.
------------------------

         THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED, WHICH EXTEND BEYOND THE
PROVISIONS OF THIS AGREEMENT, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR INTENDED PURPOSE. All notices of substantial variance in
specifications of the Cliffs Pellets from the quality described herein shall be
given in writing delivered to Cliffs within sixty (60) calendar days after
completion of discharge at the port of discharge, or any claim arising from any
such substantial variance shall be deemed waived by LTV. Each party shall afford
the other party prompt and reasonable opportunity to inspect the Cliffs Pellets
as to which any notice is given as above stated. The Cliffs Pellets shall not be
returned to Cliffs without prior written consent of Cliffs. In no event shall
Cliffs be liable for LTV's cost of processing, lost profits, injury to good will
or any other special or consequential damages.

                                       16
<PAGE>   17

SECTION 14 - FORCE MAJEURE.
---------------------------

         No party hereto shall be liable for damages resulting from failure to
produce, deliver or accept and pay for all or any of the Cliffs Pellets as
described herein, if and to the extent that such production, delivery or
acceptance would be contrary to or would constitute a violation of any
regulation, order or requirement of a recognized governmental body or agency, or
if such failure is caused by or results directly or indirectly from acts of God,
war, insurrections, interference by foreign powers, strikes, labor disputes,
fires, floods, embargoes, accidents, or uncontrollable delays at the mines or
either steel plant, on the railroads, docks or in transit, shortage of
transportation facilities, disasters of navigation, or other causes, similar or
dissimilar, that are beyond the control of the party charged with a failure to
deliver or to accept and pay for the Cliffs Pellets. A party claiming a force
majeure shall give the other party prompt notice of the force majeure, including
the particulars thereof and, insofar as known, the probable extent and duration
of the force majeure. To the extent a force majeure is claimed hereunder by a
party hereto, such shall relieve the other party from fulfilling its
corresponding agreement hereunder to the party claiming such force majeure, but
only for the period affected by and to the extent of the claimed force majeure,
unless otherwise mutually agreed to by the parties. The party that is subject to
a force majeure shall use commercially reasonable efforts to cure or remove the
force majeure event as promptly as possible to resume performance of its
obligations under this Agreement.

                                       17
<PAGE>   18

SECTION 15 - NOTICES.
---------------------

         All notices, consents, reports and other documents authorized and
required to be given pursuant to this Agreement shall be given in writing and
either personally served on an officer of the parties hereto to whom it is given
or mailed by registered or certified mail, postage prepaid, or sent by telex,
telegram or facsimile addressed as follows:

                  If to Cliffs:
                           1100 Superior Avenue - 18th Floor
                           Cleveland, Ohio 44114-2589
                           Attention:  Secretary
                           cc:      Vice President-Sales

                  If to LTV:
                            200 Public Square
                           Cleveland, Ohio  44114
                           Attention:  General Counsel
                           cc:  General Manager - Procurement

provided, however, that any party may change the address to which notices or
other communications to it shall be sent by giving to the other party written
notice of such change, in which case notices and other communications to the
party giving the notice of the change of address shall not be deemed to have
been sufficiently given or delivered unless addressed to it at the new address
as stated in said notice.

SECTION 16 - TERM.
------------------

         (a). The term of this Agreement shall commence as of May 15, 2000 and
continue through December 31, 2009 (except as may be provided for in Subsection
(b) below). Unless either party has given written notice of termination to the
other party by December 31, 2007, this Agreement shall continue on an annual
basis after December 31, 2009, subject to subsequent termination by either party
upon not less than two

                                       18
<PAGE>   19

years' prior written notification to the other party, in which case the
Agreement shall terminate at the end of the second succeeding year.

         (b). In the event that the [* * * *], as determined by Section 5(d), is
applicable causing a price increase from the average adjusted [* * * *] price
per ton for two consecutive years after the year [* * * *] or causing a price
decrease from the average adjusted [* * * *] price per ton for two consecutive
years after the year [* * * *], either party may give written notification to
the other party that such notifying party desires to renegotiate the adjustment
factors and pricing provisions of Section 5. In the event either party gives
notice under the first sentence of (b), both parties agree to negotiate in good
faith new price provisions.

                  (1) If a notice is given, as provided for in the first
         sentence of (b) above, and an agreement is reached on new pricing
         arrangements prior to the [* * * *] in which written notification was
         given, this Agreement shall continue through the term as defined in
         Section 16(a), in accordance with the new agreed upon pricing
         arrangements.

                  (2) If a notice is given, as provided for in the first
         sentence of (b) above, and no agreement is reached on new pricing
         arrangements within [* * * *] after the written notification was given,
         this Agreement shall terminate at the end of the [* * * *] in which the
         [* * * *] negotiation period ends. (i.e., [* * * *]).

         (c) This Agreement shall remain valid and fully enforceable for the
fulfillment of obligations incurred prior to termination.

                                       19

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AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

<PAGE>   20

SECTION 17 - AMENDMENT.
-----------------------

         This Agreement may not be modified or amended except by an instrument
in writing signed by the parties hereto.

SECTION 18 - MERGER, TRANSFER AND ASSIGNMENT.
---------------------------------------------

         (a) LTV shall not merge, consolidate or reorganize with any person,
partnership, corporation or other entity unless the surviving or resulting
person, partnership, corporation or other entity assumes in writing all of LTV's
obligations under this Agreement. Any obligations required to be assumed by a
surviving or resulting person, partnership, corporation or entity in accordance
with this Section 18(a) shall be limited to the LTV obligations under this
Agreement, and this Section 18(a) is not intended (i) to impose and shall not be
deemed to impose upon any such surviving or resulting person, partnership,
corporation or entity, including LTV, any obligation with respect to any pellet
requirements it may have for any facility or facilities it owns or operates
other than the Indiana Harbor Works and the Cleveland Works, nor (ii) to allow
the surviving or resulting person, partnership, corporation or other entity to
substitute any other pellet tonnage available from any other pellet purchase or
pellet equity commitment of such surviving or resulting person, partnership,
corporation or other entity in order to satisfy the assumed obligations under
this Agreement.

         (b) LTV shall not sell or transfer all or any of the blast furnace
operations at (i) the Indiana Harbor Works, (ii) the Cleveland Works, or (iii)
both the Indiana Harbor Works and the Cleveland Works to any other person,
partnership, corporation, joint venture or other entity ("Transferee") unless
the Transferee assumes in writing all of LTV's obligations under this Agreement,
as such obligations relate to the Indiana Harbor

                                       20
<PAGE>   21

Works and/or the Cleveland Works being sold or transferred. Any obligations
required to be assumed by a Transferee in accordance with this Section 18(b)
shall be limited to the LTV obligations under this Agreement relating to the
particular facility or facilities sold or transferred, provided that LTV may, in
its discretion, agree to provide to a Transferee some or all of LTV's Annual
Equity Entitlements and [* * * *] Annual Equity Entitlements, which, if
provided, shall reduce the pellet tonnage requirements of the Transferee under
this Agreement in the manner set forth in this Agreement. This Section 18(b) is
not intended (i) to impose and shall not be deemed to impose upon any such
Transferee any obligation with respect to any pellet requirements such
Transferee may have for any facility or facilities such Transferee owns or
operates other than the Indiana Harbor Works and/or the Cleveland Works, nor
(ii) to allow such Transferee to substitute any other pellet tonnage available
from any other pellet purchase or pellet equity commitment of such Transferee in
order to satisfy the assumed obligations under this Agreement.

         (c) LTV shall not assign its rights or delegate its obligations under
this Agreement except as provided in Section 18(a) or 18(b).

         (d) Cliffs shall not merge, consolidate or reorganize with any person,
partnership, corporation or other entity unless the surviving or resulting
person, partnership, corporation or other entity assumes in writing all of
Cliffs' obligations under this Agreement. Cliffs shall not sell or transfer all
or substantially all of its iron ore business to any other person, partnership,
corporation, joint venture or other entity ("Cliffs Transferee") unless the
Cliffs Transferee assumes in writing all of Cliffs' obligations under this
Agreement.

                                       21

CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

<PAGE>   22

         (e) Cliffs shall not assign its rights or delegate its obligations
under this Agreement except as provided in Section 18(d).

         (f) All the covenants, stipulations and agreements herein contained
shall inure to the benefit of and bind the parties hereto and their respective
successors, transferees and permitted assigns, and any of the latter's
subsequent successors, transferees and permitted assigns.

SECTION 19 - WAIVER.
--------------------

         No waiver of any of the terms of this Agreement shall be valid unless
in writing. No waiver or any breach of any provision hereof or default under any
provisions hereof shall be deemed a waiver of any subsequent breach or default
of any kind whatsoever.

SECTION 20 - CONFIDENTIALITY.
-----------------------------

         (a) Cliffs and LTV acknowledge that this Agreement contains certain
pricing, adjustment and term provisions which are confidential, proprietary or
of a sensitive commercial nature and which would put Cliffs or LTV at a
competitive disadvantage if disclosed to the public, specifically, Section
4(b)(iii), Section 5, Section 6 and Section 16(b) ("Confidential Information").
Cliffs and LTV agree that all provisions of this Agreement shall be kept
confidential and, without the prior written consent of the other party, shall
not be disclosed to any party not a party to this Agreement except as required
by law or governmental or judicial order and except that disclosure of the
existence of this Agreement shall not be precluded by this Section 20.

         (b) If either party is required by law or governmental or judicial
order or receives legal process or court or agency directive requesting or
requiring disclosure of any of the Confidential Information contained in this
Agreement, such party will promptly

                                       22
<PAGE>   23

notify the other party prior to disclosure to permit such party to seek a
protective order or take other appropriate action to preserve the
confidentiality of such Confidential Information. If either party determines to
file this Agreement with the Securities and Exchange Commission ("Commission")
or any other federal, state or local governmental or regulatory authority, or
with any stock exchange or similar body, such determining party will use its
reasonable best efforts to obtain confidential treatment of such Confidential
Information pursuant to any applicable rule, regulation or procedure of the
Commission and any applicable rule, regulation or procedure relating to
confidential filings made with any such other authority or exchange. If the
Commission (or any such other authority or exchange) denies such party's request
for confidential treatment of such Confidential Information, such party will use
its reasonable best efforts to obtain confidential treatment of the portions
thereof that the other party designates. Each party will allow the other party
to participate in seeking to obtain such confidential treatment for Confidential
Information.

SECTION 21 - GOVERNING LAW.

         This Agreement shall in all respects, including matters of
construction, validity and performance, be governed by and be construed in
accordance with the laws of the State of Ohio.

                                       23

<PAGE>   24

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of May
15, 2000.

THE CLEVELAND-CLIFFS IRON                    LTV STEEL COMPANY, INC.
  COMPANY

 /s/ A. Stanley West                         /s/ R.J. Hipple
----------------------------------           -----------------------------------
Senior Vice President                        President

CLIFFS MINING COMPANY

/s/ A. Stanley West
----------------------------------
Senior Vice President

NORTHSHORE MINING COMPANY

/s/ D.J. Gallagher
----------------------------------
Vice President

                                       24
<PAGE>   25

                                   APPENDIX I
                                   ----------
<TABLE>
<CAPTION>
                                                                                              PAGE
                                                                                              ----
<S>                                                                                             <C>
Agreement........................................................................................1
Average [* * * *] price per iron unit............................................................13
Cleveland Works..................................................................................2
Cliffs...........................................................................................1
Cliffs Pellets...................................................................................1
Cliffs Transferee................................................................................25
Commission.......................................................................................26
Confidential Information.........................................................................26
[* * * *]........................................................................................12
[* * * *] Average [* * * *] Costs................................................................10
Empire Mine......................................................................................1
Empire Pellets...................................................................................1
[* * * *] prices per iron unit...................................................................13
[* * * *]........................................................................................11
Hibbing Mine.....................................................................................1
Hibbing Pellets..................................................................................1
Indiana Harbor Works.............................................................................2
Iron.............................................................................................1
LPT..............................................................................................13
LTV..............................................................................................1
LTV's Annual Equity Entitlements.................................................................2
</TABLE>

                                       25

CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

<PAGE>   26

<TABLE>
<S>                                                                                             <C>
LTV's Annual Excess Pellet Tonnage Requirements..................................................2
[* * * *]........................................................................................12
Mining...........................................................................................1
Northshore.......................................................................................1
Northshore Mine..................................................................................1
Northshore Pellets...............................................................................1
pellets..........................................................................................3
[* * * *]........................................................................................15
ton..............................................................................................3
Transferee.......................................................................................24
[* * * *]........................................................................................2
[* * * *] Annual Equity Entitlements.............................................................2
year.............................................................................................3
1999 adjusted Hibbing price per iron unit........................................................8
1999 adjusted Northshore price per iron unit.....................................................9
</TABLE>

                                       26

CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

<PAGE>   27

                                    EXHIBIT 1
                                    [* * * *]

                                       27

CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

<PAGE>   28

                                    EXHIBIT 2
                                    [* * * *]

                                       28

CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

<PAGE>   29

                                    EXHIBIT 3
                                    [* * * *]

                                       29

CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

<PAGE>   30

                                    EXHIBIT 4
                                    [* * * *]

                                       30

CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

<PAGE>   31

                                    EXHIBIT 5
                                    [* * * *]

                                       31

CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

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