Document:

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                                 EXHIBIT 10.8

                           COMPASS BANCSHARES, INC.
                        2002 INCENTIVE COMPENSATION PLAN
                     NON-QUALIFIED STOCK OPTION AGREEMENT

       THIS AGREEMENT is made and entered into as of ____________ ____, 2005,
between grantor Compass Bancshares, Inc., a Delaware corporation (the
"Corporation"), Compass Bank ("Compass"), and grantee, ____________ (the
"Employee").

                             W I T N E S S E T H:

       The Compensation Committee of the Board of Directors of the Corporation
(the "Compensation Committee"), upon the request of Compass Bank and any other
affiliate or subsidiary of the Corporation employing Employee, approved the
grant to Employee of awards under the Corporation's 2002 Incentive Compensation
Plan (the "Plan") and established the terms and conditions of such awards, as
contained in this Agreement.

       NOW, THEREFORE, the parties hereto agree as follows:

       1.  GRANT OF OPTION. Employee shall have the right and option to purchase
on the terms and conditions set forth herein and in the Plan, all or any part of
an aggregate of ______ shares ("Option Shares") of the $2.00 par value common
stock of the Corporation (the "Common Stock") at the purchase price of $_______
per share (the "Option Price"). The Option Price is 100% of the fair market
value of the Common Stock on _____________ ___, 2005, the date of the grant of
the option covered by this Agreement.

       2. TERMS AND CONDITIONS. It is understood and agreed that the option
evidenced hereby is subject to the following terms and conditions:

             (a)    Expiration Date.  The option shall expire on ____________
____, 2015 (the "Expiration Date").  After the Expiration Date, Employee shall
have no further rights to exercise any option granted hereunder. Nothing
contained in this Agreement, including without limitation no part of this
Section 2 or Section 8, shall extend the time period during which the option
can be exercised beyond the Expiration Date.

             (b)    Exercise of Option.  The option covered by this Agreement
may be exercised by Employee from time to time, in whole or in part, up to the
amount set forth in the following schedule during the period beginning on the
date indicated below and ending on the Expiration Date:

             Date                             Options exercisable
             ____________ , 2008              100% of aggregate shares

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             (c)    Method of Exercise and Payment of Purchase Price Upon
Exercise.  The method of exercise of the option shall be by giving written
notice to the Corporation.  Payment shall be made at the time of exercise and
shall be in cash or in shares of Common Stock.  In the event payment is made in
shares of Common Stock, such shares shall be valued at their fair market value
on the date of exercise, as indicated by the closing stock price at the close
of regular trading hours of the primary stock exchange or market on which the
Common Stock is traded on that date.  The option is not exercised until both
the written notice and the payment for the shares exercised are actually
received by the Corporation.

             (d)    Exercise Upon Death.  In the event that Employee ceases to
be employed by Corporation or its subsidiaries by reason of death, the option
shall become immediately exercisable, notwithstanding the schedule in Section
2(b) hereof, and may thereafter be exercised as to all shares subject to the
option by the legal representative of the estate or by the person or persons
entitled to the option under the Employee's will or the laws of descent and
distribution, as appropriate, until the earlier of (i) the Expiration Date or
(ii) the first anniversary of the date of the Employee's death.

             (e)    Exercise Upon Termination of Employment While Disabled.  In
the event that Employee ceases to be employed by the Corporation or its
subsidiaries while Disabled, as defined below, except for Cause, as defined in
Section 8, the option shall become immediately exercisable, notwithstanding the
schedule in Section 2(b) hereof, and may thereafter be exercised as to all
shares subject to the option until the earlier of (i) the Expiration Date or
(ii) the later of (A) the first anniversary of the date that Employee is
determined by the Corporation to be Disabled or (B) the first anniversary of
the end of Employee's employment by the Corporation or its subsidiaries.  As an
express condition to the applicability of this Section 2(e), Employee agrees to
cooperate with the Corporation in determining whether Employee is Disabled,
including without limitation providing documentation from health care providers
and submitting to medical examinations upon request by the Corporation.  For
purposes of this Agreement, Employee shall be considered to be Disabled if
Employee is totally and permanently disabled according to the standards
contained in the Corporation's long-term disability plan, as applied by the
Corporation, or according to such other reasonable standard that the
Corporation may apply, in its sole discretion.

             (f)    Exercise Upon Termination of Employment by Reason Other
than Death or Disability.  The option or any unexercised portions thereof shall
expire upon termination of Employee's employment with the Corporation or its
subsidiaries for any reason, except as provided in Section 2(d), Section 2(e),
and this Section 2(f).  If Employee's employment with the Corporation or its
subsidiaries is terminated by either party prior to 15 days after the initial
vesting of any of the options as set forth in Section 2(b), then 5% of the
Option Shares shall be deemed vested, notwithstanding the schedule in Section
2(b), and available for exercise by the employee within 30 days after the
termination of Employee's employment with the Corporation or its subsidiaries.
Additionally, the vested portion of the option may be exercised in whole or in
part within three months after Employee's termination of employment (a) at any
time after a "Sale of

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the Corporation" as defined in Section 8(f) hereof, (b) within the meaning of
the Compass Bancshares, Inc. Severance Pay Plan, as such Plan may exist from
time to time (including any amendment to, modification of, addition to, deletion
from, or replacement of said Plan), that results in eligibility for benefits
under such Plan, provided that this provision is not intended to, and does not,
constitute a guarantee or promise that the Compass Bancshares, Inc. Severance
Pay Plan (in its current or any future form) will be continued and the
Corporation expressly reserves all rights to amend, modify, add to, delete from,
and terminate such Plan, or (c) upon retirement at age fifty-five or older with
at least five years of vested service under the Compass Bancshares, Inc.
Retirement Plan or the Compass Bancshares, Inc. SmartInvestor Retirement Plan.
Upon the Employee's termination in the event of (a) or (b) above, any
unexercised portion of the option shall vest and become subject to exercise
immediately and the schedule set forth in Section 2(b) hereof shall become void.

       3.    NON-QUALIFIED STOCK OPTION.  This option is intended to be a non-
qualified stock option within the meaning of the Internal Revenue Code of 1986,
as amended (the "Code").

       4.    NO RIGHTS AS SHAREHOLDER.  No option granted hereunder shall
entitle the holder thereof to any rights as a shareholder in the Corporation
with respect to any shares to which the option relates until such option has
been exercised properly and paid for in full and the corresponding shares
issued.

       5.    RESTRICTIONS ON TRANSFER OF SHARES.  Employee hereby agrees for
himself or herself and his or her legal representative, heirs and distributees,
that if a registration statement covering the shares issuable upon exercise of
any option hereunder is not effective under the Securities Act of 1933, as
amended (the "Act"), at the time of such exercise, or if some other exemption
from the provisions of the Act is not available, then all shares of Common
Stock then received or purchased upon such exercise shall be acquired for
investment, and that the notice of exercise delivered to the Corporation shall
be accompanied by a representation in writing acceptable in scope and form to
counsel to the Corporation and signed by Employee or Employee's legal
representative, heirs or distributees, as the case may be, to the effect that
the shares are being acquired in good faith for investment and not with a view
to distribution thereof.  Any shares so acquired may be deemed restricted
securities under Rule 144 as promulgated by the Securities and Exchange
Commission under the Act, and as the same may be amended or replaced and
subject to restrictions upon sale or other disposition and may bear any
required legend, or other legend deemed appropriate by the Corporation, to that
effect.

       6.    REGISTRATION OF SHARES.  If at any time the Board of Directors of
the Corporation or the Compensation Committee shall determine that the listing,
registration, or qualification of any shares subject to the option upon any
securities exchange, or under any state or federal law, or the consent or
approval of any governmental or regulatory body is necessary or desirable as a
condition of or in connection with the issuance or purchase of shares
hereunder, the option may not be exercised in whole or in part unless such
listing, registration, qualification, consent, or approval has been effected or
obtained

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free of any conditions that are not acceptable to the Board of Directors or to
the Compensation Committee.

       7.    TRANSFER OF RIGHTS.  This option is not transferable except by
will or by the laws of descent and distribution and shall be exercisable during
Employee's lifetime only by Employee.  After the death of Employee, this option
may be exercised only by Employee's estate or by the person or persons entitled
to the option under Employee's will or the laws of descent and distribution, as
appropriate.  In the event the option is transferred by reason of the
Employee's death, the option may be exercised thereafter only to the extent
that the Employee would have been entitled to exercise the option had the
option not been transferred.

       8.    COVENANTS.  In consideration of the Corporation, Compass, or one
or more of the subsidiaries or affiliates of either (hereinafter collectively
referred to as "the Company") disclosing confidential and proprietary
information, as more fully described in Section 8(c) below, after the date
hereof, the grant by the Corporation of the option, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Employee, the Corporation, and Compass, intending to be legally bound, hereby
agree as follows:

             (a)    While Employee is employed by the Company, Employee will
devote his or her entire time, energy and skills to the service of the Company.
Such employment shall be at the pleasure of the board of directors of each
employing corporation. Except as provided in Section 2 hereof, no option
granted under this Agreement shall be exercised after the termination of
Employee's employment with the Company.  Nothing contained in this Agreement
shall extend the time period set forth in Section 2(a) during which the option
can be exercised.

             (b)    Employee will not, during the term of his or her employment
with the Company, or for a period of two years (and if two years is determined
by a court to be overly broad, then 18 months; and if 18 months is determined
by a court to be overly broad, then 12 months) after termination for any reason
of his or her employment with the Company, directly or indirectly, either
individually or as a stockholder, director, officer, consultant, independent
contractor, employee, agent, member or otherwise of or through any corporation,
partnership, association, joint venture, firm, individual or otherwise
(hereinafter "Firm"), or in any other capacity:

                    (i)   Carry on or engage in a business that competes with
the business of the Company within 50 miles (and if 50 miles is determined by a
court to be overly broad, then 25 miles) of any city where Employee engaged in
business (measured from Employee's primary office), Employee had responsibility
(measured from Employee's office in such city or, if none, from the primary
county courthouse of such city), other employees that were supervised by
Employee worked (measured from their primary offices), or Employee otherwise
conducted business for the Company (measured from Employee's office in such
city or, if none, from the primary county courthouse of such city).  For
purposes of this subsection 8(b)(i), the "business of the Company" means

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that portion of the business of the Company that was conducted by Employee or
those under his or her supervision;

                    (ii)  With respect to any type of product or service
offered by or available from the Company, solicit, directly or indirectly, or
do any such business with any customer of the Company called on, serviced by,
or contacted by the Employee in any capacity, or otherwise known to the
Employee by virtue of the Employee's employment with the Company, in any state
in which the Employee was employed by the Company or any state in which both
the customer and the Company do business.  For purposes of this Section
8(b)(ii), "customer" is limited to those persons or entities that are current
customers of the Company at the time Employee's employment relationship with
the Company ends as well as those persons or entities who were customers of the
Company in the twelve months preceding the end of Employee's employment
relationship with the Company; or

                    (iii) Solicit, directly or indirectly, any employee of the
Company to leave their employment with the Company for any reason.  For
purposes of this Agreement, the Employee agrees that Employee shall be presumed
to have solicited an employee in violation of this Agreement if such employee
is hired by Employee or his or her Firm within six (6) months of Employee's
last employment date with the Company.

             (c)    The Company shall provide confidential information to
Employee and, Employee agrees, during the term of his or her employment and
thereafter, not to use, divulge, or furnish or make accessible to any third
party, company, corporation or other organization (including, but not limited
to, customers, competitors, or governmental agencies), without the Company's
prior written consent, any trade secrets, customer lists, information regarding
customers, information regarding Compass' relationships with specific existing
or prospective customers, customer goodwill associated with Compass' trade
name, or other valuable confidential and proprietary information concerning the
Company or its business, including without limitation, confidential methods of
operation and organization, trade secrets, confidential matters related to
pricing, markups, commissions and customer lists.  Employee warrants and agrees
that every customer whom Employee services in any way while employed at the
Company is a customer of the Company and not a customer of Employee,
individually.  Employee agrees that such information remains confidential even
if committed to Employee's memory.

             (d)     Employee and the Corporation recognize that Compass and
any subsidiaries or affiliates of the Corporation or Compass which employ
Employee are third-party beneficiaries to this Agreement that are intended to
be protected by the covenants in this Agreement and that, except as otherwise
expressly provided in this Agreement, any successor or assign of the
Corporation or one of the third-party beneficiaries to this Agreement may
enforce the covenants in this Agreement as if it were a party to these
covenants.  Moreover, Employee, the Corporation, and Compass acknowledge and
agree that the Company has legitimate business interests to protect relative to
Employee, including trade secrets, other valuable confidential and proprietary

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business information, substantial relationships with specific prospective and
existing customers, substantial relationships with other employees of the
Company, customer goodwill associated with Compass' trade name, and the
Company's servicing of specific markets provided to Employee. Employee agrees
that the restrictions contained in this Section 8 are necessary and reasonable
for the protection of the legitimate business interests and goodwill of the
Company described above, and Employee agrees that any breach of this Section 8
will cause the Company substantial and irrevocable damage and, therefore, the
Company shall have the right, in addition to any other remedies it may have, to
seek specific performance and injunctive relief, without the need to post a bond
or other security. Employee agrees that the period during which the covenant
contained in this Section 8 shall be effective shall be computed by excluding
from such computation any time during which Employee is in violation of any
provision of Section 8. Employee agrees that if any covenant contained in
Section 8 of this Agreement is found by a court of competent jurisdiction to
contain limitations as to time, geographical area, or scope of activity that are
not reasonable and impose a greater restraint than is necessary to protect the
goodwill or other business interest of the Company, then the court shall reform
the covenant to the extent necessary to cause the limitations contained in the
covenant as to time, geographical area, and scope of activity to be restrained
to be reasonable and to impose a restraint that is not greater than necessary to
protect the goodwill and other business interests of the Company and to enforce
the covenant as reformed.

             (e)    Employee specifically recognizes and affirms that each of
the covenants contained in subdivisions (b) and (c) of this Section 8 is a
material and important term of this Agreement which has induced the Company to
provide for the award of the option granted hereunder, the disclosure of
confidential information referenced herein, and the other promises made by the
Company herein.  Employee further agrees that should all or any part of
subdivisions (b) or (c) of this Section 8 be held or found invalid or
unenforceable for any reason whatsoever by a court of competent jurisdiction in
an action between Employee and the Corporation, Compass, or an affiliate of
either, the Corporation shall be entitled to receive (but not obligated to
acquire) from Employee all Common Stock held by Employee which was obtained by
Employee under this Agreement (including all shares obtained by virtue of any
stock dividend or distribution, recapitalization, merger, consolidation, split-
up, combination, exchange of shares, or other transaction, hereinafter "stock
dividends") by returning to Employee for each share received the Option Price
paid by Employee (as adjusted for stock dividends).  If Employee has sold,
transferred, or otherwise disposed of Common Stock obtained under this
Agreement (including all shares obtained by virtue of any stock dividend), the
Corporation shall be entitled to receive from Employee the difference between
the Option Price paid by Employee and the fair market value of the Common Stock
(including all shares obtained by virtue of any stock dividends) on the date of
sale, transfer, or other disposition.

             (f)    Notwithstanding any provision to the contrary herein
contained, Section 8(b) shall not apply:

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                    (i)   Upon the termination of the Employee's employment by
the Company other than for Cause within one (1) year following a Sale of the
Corporation; and

                    (ii)  Upon the voluntary termination of employment by the
Employee for any reason within the thirty (30) day period immediately after the
one (1) year period following a Sale of the Corporation.

For purposes of this Agreement, "Cause" shall mean (i) a willful and material
violation of applicable banking laws and regulations, (ii) dishonesty, (iii)
theft, (iv) fraud, (v) embezzlement, (vi) commission of a felony or a crime
involving moral turpitude, (vii) substantial dependence or addiction to alcohol
or any drug, (viii) conduct disloyal to the Corporation or its affiliates, or
(ix) willful dereliction of duties or disregard of lawful instructions or
directions of the officers or directors of the Corporation or its affiliates
relating to a material matter.

For purposes of this Agreement, "Sale of the Corporation" shall mean (i) the
acquisition by any individual, entity or group (within the meaning of Sections
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act")) (a "Person") of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of more than 50% of either the
then outstanding shares of common stock of the Corporation (the "Outstanding
Common Stock") or the combined voting power of the then outstanding voting
securities of the Corporation entitled to vote generally in the election of
directors (the "Outstanding Voting Securities"), or (ii) consummation by the
Corporation of a reorganization, merger or consolidation, or sale or other
disposition of all or substantially all of the assets of the Corporation;
unless, following such acquisition of beneficial ownership or transaction, (A)
more than 60% of the then outstanding shares of common stock of the Person
resulting from such reorganization, merger or consolidation, or (B) more than
60% of the then outstanding shares of common stock of the Person acquiring such
beneficial ownership or assets, and the combined voting power of the then
Outstanding Voting Securities of such Person entitled to vote generally in the
election of directors of such Person is then beneficially owned, directly or
indirectly, by all or substantially all of the individuals or entities who were
the beneficial owners, respectively, of Outstanding Common Stock and
Outstanding Voting Securities immediately prior to such acquisition or
transaction, in substantially the same proportion as their ownership of
Outstanding Common Stock and Outstanding Voting Securities prior to such event.

             (g)    This Section 8 replaces section 8 in all stock option
agreements between the Corporation and the Employee entered into as of a date
prior to the date of this Agreement.  All such prior agreements are hereby
amended to include this Section 8 in place of section 8 in any such prior
agreements.  All other provisions in all such prior agreements are unaffected
by this amendment.

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       9.    DISPOSITION OF SHARES.  Employee shall notify the Corporation
promptly of the disposition of any shares of Common Stock purchased pursuant to
this option which are disposed of within one year after transfer of such shares
to Employee.

       10.   PLAN TO CONTROL.  The Plan is incorporated in this Agreement by
this reference.  Any question of interpretation or application of the Plan or
this Agreement shall be resolved by the Compensation Committee and its
determination shall be final and binding on the Corporation and Employee.  In
the event of any conflict between the provisions of the Plan and of this
Agreement, the Plan shall control.  Employee hereby acknowledges receipt of a
copy of the Plan.

       11.   NOTICES.  All notices hereunder shall be in writing and, if to the
Corporation, shall be delivered personally to the Chairman or Corporate
Secretary or mailed to the Corporation's principal office at 15 South 20th
Street, Birmingham, Alabama 35233, addressed to the attention of the Chairman
or Corporate Secretary; and if to Employee, shall be delivered personally or
mailed to him or her at the address noted below.  Such addresses may be changed
at any time by notice from one party to the other.

       12.   BINDING EFFECT.  This Agreement shall bind and inure to the
benefit of the parties hereto, to the subsidiaries and affiliates of the
Corporation and Compass, the successors and assigns of the Corporation, Compass
or any of their subsidiaries or affiliates, and the person to whom the rights
of Employee are transferred by will or the laws of descent and distribution.

       13.   HEADINGS.  The section headings used herein are solely for
reference only and shall not affect in any way the meaning and interpretation
of the terms and conditions set forth herein.

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

                                 COMPASS BANCSHARES, INC.

                                 By: ___________________________________

                                 Name: D. Paul Jones, Jr.

                                 Title: Chairman and Chief Executive Officer

                                 COMPASS BANK

                                 By:  ___________________________________

                                 Name:  E. Lee Harris, Jr.

                                 Title: Executive Vice President and
                                          Executive Officer, Human Resources

WITNESS:                         EMPLOYEE:

__________________________       ___________________________________
                                 Signature

                                 Date:_______________________________

                                 ___________________________________
                                 Address

                                 ___________________________________
                                 City         State               Zip<PAGE>

                                                                  EXHIBIT 10(OO)

                              CLEVELAND-CLIFFS INC

                           LONG-TERM INCENTIVE PROGRAM
                         PARTICIPANT GRANT AND AGREEMENT
                                    YEAR 2002

      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, a copy of which is attached hereto as Appendix A-1; 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) a copy of which is attached hereto as Appendix A-2;
and

      WHEREAS, on May 8, 2000, the Board of Directors of the Company ("Board"),
adopted the 2000 Retention Unit Plan ("2000 Retention Plan"), a copy of which is
attached hereto as Appendix B; 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"), a copy of which is attached hereto as Appendix C, 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, ________________ ("Participant") is an employee of the Company or
of a Subsidiary of the Company; and

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      WHEREAS, on February 1, 2002 ("Date of Grant") the Committee authorized
the granting to the Participant of ______________ Performance Shares and
______________ Retention Units covering the incentive period commencing January
1, 2002 and ending December 31, 2004 ("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, 2001, and ending on
December 31, 2004.

      1.2 "CHANGE IN CONTROL" shall mean the date on which any of the following
is effective:

            (i) The acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act of 1934, as amended
(the "Exchange Act")) (a "Person") of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of the combined
voting power of the then outstanding securities of the Company entitled to vote
generally in the election of directors ("Voting Stock"); provided, however, that
for purposes of this Section 1.2(i), 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 in
Section 1.2(ii), below), (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

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by any Person pursuant to a Business Combination (as defined in Section 1.2(iii)
below) that complies with clauses (A), (B) and (C) of Section 1.2(iii), below;
or

            (ii) Individuals who, as of the date hereof, constitute the Board
(the "Incumbent Board") cease for any reason to constitute at least a majority
of 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; or

            (iii) Consummation of 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
(each, a "Business Combination"), unless, in each case, immediately following
such Business Combination, (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 Combination 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 Combination
(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 Combination, of the Voting Stock of the Company, (B) no Person (other
than the Company, such entity resulting from such Business Combination, or any
employee benefit plan (or related trust) sponsored or maintained by the Company,
any Subsidiary or such entity resulting from such Business Combination)
beneficially owns, directly or indirectly, 30% or more of the

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<PAGE>

combined voting power of the then outstanding shares of Voting Stock of the
entity resulting from such Business Combination, and (C) at least a majority of
the members of the board of directors of the entity resulting from such Business
Combination 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
Combination; or

            (iv) Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company, except pursuant to a Business
Combination that complies with clauses (A), (B) and (C) of Section 1.2(iii).

      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 "NOPAT" shall mean net operating profit after taxes, as more fully
described on attached Exhibit D.

      1.7 "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.

      1.8 "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.

      1.9 "PERFORMANCE SHARE" shall have the meaning assigned thereto in the
1992 ICE Plan.

      1.10 "PERFORMANCE SHARES EARNED" shall mean the number of Common Shares of
the Company (or cash equivalent) earned by a Participant following the

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<PAGE>

conclusion of an Incentive Period in which a required minimum of Company
Performance Objectives and Strategic Objectives were met or exceeded.

      1.11 "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.

      1.12 "RETIREMENT OR RETIRED" shall mean retirement as defined in the
retirement plan of the Company, including without limitation any supplemental
retirement plan.

      1.13 "RETURN ON NET ASSETS" shall mean NOPAT divided by Average Net
Assets, as more particularly described on attached Exhibit D.

      1.14 "STRATEGIC OBJECTIVES" shall mean specific business objectives as
determined by the Committee, as more fully described on attached Exhibit E.

      1.15 "SUBSIDIARY" shall have the meaning assigned thereto in the 1992 ICE
Plan.

      1.16 "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 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, and measured by the average Market Value Price per
share (increase or decrease) of a Common Share of the Company and of a common
share of each of the entities in the Peer Group adjusted for reinvested
dividends (or other distributions) 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, as
more particularly set forth on attached Exhibit F.

                                       5
<PAGE>

                                   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 Eighth 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 and Strategic Objectives, all as more particularly set forth in the
Scorecard attached as Exhibit G, with actual payouts interpolated between the
performance levels shown on Exhibit G. The value of the number of Common Shares
calculated to be earned by a Participant as Performance Shares Earned at the end
of the Incentive Period ("Calculated Value") shall not exceed a value determined
by multiplying the number of Common Shares calculated to be earned by a
Participant by twice the Market Value Price per share of a Common Share on the
Date of Grant ("Maximum Value"), and the number of actual Performance Shares
Earned will be reduced to the extent necessary to prevent the Calculated Value
of the Performance Shares Earned from exceeding the calculated Maximum Value,
except as otherwise provided for in Section 4.2. 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 and Strategic Objectives established
for the Incentive Period. Once the percentage level of achievement is determined
for each Performance Objective, that combined percentage may be adjusted upwards
or

                                       6
<PAGE>

downwards by the Committee's assessment of the achievement of the Strategic
Objectives. That resultant percentage level of achievement of both the
Performance Objectives and Strategic Objectives 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 receipt by
the Committee of audited financial statements of the Company relating to the
last fiscal year of the Incentive Period and 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
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 H 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

                                       7
<PAGE>

the end of such Incentive Period, prorated for the number of months the
Participant was employed in such 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 Eighth 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 H 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.

                                       8
<PAGE>

            (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 for the number of months the Participant was
employed in such 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.

                                       9
<PAGE>

      4.2 CHANGE IN CONTROL.

            (a). 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. In the event of a Change in
Control, the number of Common Shares to be earned as Performance Shares Earned
will not be reduced as provided for in Section 2.3.

            (b). If (i) a Change in Control involves any combination of the
Company with any other entity, and (ii) the Company and such entity desire to
account for such combination under the pooling-of-interests method for financial
statement purposes ("Pooling"), and either (x) the sole reason that Pooling
would be unavailable to the Company and such entity is, in the opinion of the
Company's independent accountants, the payment of the cash value of Performance
Shares Earned, then the value of the Performance Shares Earned will be paid in
shares of common stock of the combined entity within 10 days of the Change in
Control, or (y) the sole reason that Pooling would be unavailable to the Company
and such entity is, in the opinion of the Company's independent accountants, the
effectiveness of the second sentence of subsection (a) above, then such second
sentence of subsection (a) shall be void and the Company shall use its best
efforts to have the combined entity provide a similar incentive compensation
plan ("follow-on plan") for a Participant (including a Participant whose
employment is terminated by reason of a Change in Control), with such "follow-on
plan" being structured so as to be substantially equivalent economically to the
Company's Incentive Program but such "follow-on plan" shall not include the
equivalent of the content of the second sentence of subsection (a) above.

                                   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

                                       10
<PAGE>

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

                                       11
<PAGE>

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 INCENTIVE PROGRAM. 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.

      5.7 AMENDMENTS. 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; provided, however, that no amendment 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.

                                       12
<PAGE>

      This Agreement is executed as of the Date of Grant.

                                       CLEVELAND-CLIFFS INC

                                       ___________________________________
                                       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

                                       ___________________________________

                                       13
<PAGE>

                                   APPENDICES

Appendix A-1      1992 ICE Plan (as Amended and Restated as of May 13, 1997)

Appendix A-2      The 1999 Amendment to 1992 ICE Plan

Appendix B        2000 Retention Unit Plan

Appendix C        Long-Term Incentive Program

                                    EXHIBITS

Exhibit A         Peer Group

Exhibit B         Performance Objectives

Exhibit C         Relative Shareholder Return

Exhibit D         Return on Net Assets

Exhibit E         Strategic Objectives

Exhibit F         Total Shareholder Return

Exhibit G         Scorecard

Exhibit H         Beneficiary Designation

                                       14

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