Document:

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                                                                  Exhibit 10(bb)

                                TOLLING AGREEMENT

          TOLLING AGREEMENT (the "Agreement") dated as of May 6, 2003 among
INTERNATIONAL STEEL GROUP INC. ("ISG"), a Delaware corporation, MSC WALBRIDGE
COATINGS, INC., a Delaware corporation ("MSCWC"), and MATERIAL SCIENCES
CORPORATION, a Delaware corporation ("MSC").

                              W I T N E S S E T H :

          WHEREAS, MSCWC is now the sole owner and operator of an
electrogalvanizing and coil coating facility for cold rolled steel ("Substrate")
located at 30610 East Broadway, Walbridge, Ohio 43465 (the "Facility"), formerly
operated by MSCWC on behalf of Walbridge Coatings, An Illinois Partnership (the
"Partnership"), the previous owner of the Facility; and

          WHEREAS, MSCWC utilizes an electrogalvanization process to place a
free zinc coating on Substrate (the "Zinc Process") or to place a free zinc and
nickel coating on Substrate (the "Zinc-Nickel Process") and a roll application
process to place other coatings on Substrate (the "Roll Process" and,
collectively with the Zinc Process and the Zinc-Nickel Process, the "Processes")
at the Facility;

          WHEREAS, ISG and MSCWC desire that upon request by ISG, MSCWC will, at
the facility, coat ISG Substrate (as hereinafter defined) utilizing one of the
Processes in the same manner as conducted by MSCWC on behalf of the Partnership
prior to the date hereof (the "Core Services") and perform slitting, inspection
and other services ("Ancillary Services" and, collectively with the Core
Services, "Coating Services") on such coated ISG Substrate in exchange for the
payment of tolls, all on the terms and conditions as set forth herein; and

          NOW, THEREFORE, in consideration of the representations, warranties,
covenants and agreements herein set forth and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

                                   ARTICLE I

                                   Definitions

          SECTION 1.01. Definitions. As used herein, the following terms shall
have the following meanings:

          "Affiliate" means, with respect to any Person at any time, any other
Person directly or indirectly Controlling, Controlled by or under common Control
with such specified Person.

          "Bankruptcy" means, as to any Person, the Person's taking or
acquiescing to the taking of any action seeking relief under, or advantage of,
any applicable debtor relief,

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liquidation, receivership, conservatorship, bankruptcy, moratorium,
rearrangement, insolvency, reorganization or similar law affecting the rights or
remedies of creditors generally, as in effect from time to time. For purposes of
this definition, the term "acquiescing" shall include, without limitation, the
failure to file, within thirty (30) days after its entry, a petition, answer or
motion to vacate or to discharge any order, judgment or decree providing for any
relief under such law.

          "Business Day" shall mean any day that the Facility is open for
business.

          "Coated ISG Substrate" means ISG Substrate that has been coated
pursuant to one of the Processes at the Facility.

          "Coating Weight" means the amount of free zinc required to be applied
by the Zinc Process to ISG Substrate, expressed in grams per square meter of
coated substrate surface area.

          "Control" means, with respect to any Person, the power to, directly or
indirectly, direct the management and policies of such Person, whether through
ownership of voting securities (or pledge of voting securities if the pledgee
thereof may on the date of determination exercise or control the exercise of the
voting rights of the owner of such voting securities), by contract or otherwise;
and the terms "Control" (when used as a verb), "Controlling" and "Controlled"
have meanings correlating to the foregoing.

          "EDI" means electronic data interchange.

          "Finished Substrate" means ISG Substrate or Coated ISC Substrate on
which Ancillary Services have been performed.

          "Firm Order" has the meaning set forth in Section 6.03.

          "Floor Space" means the square footage of the Facility as of April 30,
2003.

          "Hot-Dip Galvanizing" means a process by which molten zinc is applied
to Substrate other than through electrogalvanizing.

          "ISG Inventory" means ISG Substrate, Coated ISG Substrate and Finished
Substrate.

          "ISG Line Time" means production time on the Line necessary to fulfill
the current Firm Order.

          "ISG Substrate" means Substrate owned by ISG or its Affiliates.

          "Line" means the production line of the Facility commonly referred to
as Line 6.

          "Line Time" has the meaning set forth in Section 3.02.

          "LME" means London Metal Exchange.

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          "Person" means any natural person, firm, trust, partnership, joint
venture, unincorporated association, corporation, limited liability company,
government or governmental agency or other entity.

          "Prior Agreement" means the Amended and Restated Coating Agreement
dated as of July 23, 1999, between Bethlehem Steel Corporation and the
Partnership.

          "Prime Rate" means the rate of interest published in The Wall Street
Journal as the "prime rate" on the most recent Business Day.

          "Purchase Order" shall have the meaning set forth in Section 6.04.

          "Reference Strip" means (a) a 60-inch wide, 0.030-inch minimum
thickness steel coil to which a minimum Coating Weight of 100 grams of free zinc
per square meter has been applied on one side only by the Zinc Process or (b) a
49-inch wide, 0.030-inch minimum thickness steel coil to which a minimum coating
weight of 30 grams of zinc-nickel alloy per square meter has been applied on
both sides by the zinc-nickel process.

          "Scheduled Line Time" means all time on the Line available to perform
Core Services.

          "Term" shall have the meaning set forth in Section 3.01.

          "Trip Title" means title passes to the customer at the Facility prior
to shipment from the Facility.

          "Yield Loss means ISG Substrate scrap losses and rejections of Coated
ISG Substrate or Finished Substrate caused by quality failures in the operation
of the Zinc Process or the Zinc-Nickel Process at the Facility and shall be
calculated based upon the difference between the weight of the Substrate
delivered to the Facility and the weight of the Coated ISG Substrate or Finished
Substrate shipped from the Facility; provided, however, that all losses and
rejections due to any reason beyond the control of MSCWC, including; without
limitation, defects in ISG Substrate, requests by ISG to trim coils and requests
by ISG to process overweight coils, shall not be included in Yield Loss.
Responsibility for rejected Coated ISG Substrate and Finished Substrate shall be
determined in good faith by the technical representatives of ISG and MSCWC
designated by each to determine such matters.

                                   ARTICLE II

                                Scrap Attachment

          SECTION 2.01. Attachment I. In addition to the schedules attached
hereto, Attachment I hereto entitled "Scrap Policy" shall be a part of this
Agreement and the parties hereto shall comply with the requirements of such
attachment in carrying out their respective obligations hereunder.

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                                  ARTICLE III

                   Term; Purchase and Sale of Coating Services

          SECTION 3.01. Term. Subject to Article IX hereof, the term of this
Agreement shall be from May 7, 2003 through December 31, 2004 (the "Term").

          SECTION 3.02. Core Services. Subject to the terms and conditions of
this Agreement, MSCWC shall provide ISG, as requested by ISG in accordance with
this Agreement, with a maximum 163 hours of scheduled production time (but not
more than 25% of the available hours of scheduled production time) during each
month of the Term (the "Line Time") for MSCWC's performance of Core Services on
ISG Substrate; provided, however, that for the month of May, 2003, production
time through May 6, 2003 for BSC and its Affiliates under the Prior Agreement
shall reduce the maximum hours available to ISG hereunder for that month.

          SECTION 3.03. Sole Provider. Subject to the availability of time on
the Line, ISG agrees that MSCWC shall be the sole provider of Core Services
(excluding Hot-Dip Galvanizing) on all Substrate produced or processed in, or
shipped from, ISG's Burns Harbor facilities, provided that the provision of the
Core Services at the Facility continue to meet the current acceptable level of
quality, capability and service thereat. Any new quality, capability and service
requirements will be negotiated in good faith.

          SECTION 3.04. Ancillary Services. During the Term, ISG may request
and, following such request, MSCWC shall provide Ancillary Services on ISG
Substrate or Coated ISG Substrate. MSCWC shall perform Slitting Services in
accordance with Schedule 4.02 hereto.

          SECTION 3.05. Yield Loss. MSCWC will periodically report to ISG the
amount of Yield Loss on all ISG Substrate coated using the Zinc Process and the
Zinc-Nickel Process. If the total Yield Loss on such ISG Substrate during any
fiscal quarter (March through May, June through August, September through
November and December through February) shall exceed 4% of the total tons of ISG
Substrate coated using the Zinc Process or the Zinc-Nickel Process during such
quarter, MSCWC shall promptly reimburse ISG for its cost to manufacture the
Yield Loss tons during such quarter in excess of 4% of such total, plus an
allowance for freight on such excess tons to the Facility and minus the scrap
value (as defined in Section 6.08) of such excess tons.

                                   ARTICLE IV

                            Toll for Coating Services

          SECTION 4.01. Toll for Core Services. During the Term, ISG shall pay
MSCWC the tolls for requested Core Services set forth on Schedule 4.01, subject
to adjustment pursuant to Section 4.03. Invoicing shall be rendered on "coated"
weight and shall include the weight of coatings applied on each individual coil
but shall not include the weights of protective wrappings and shipping
materials. Tolls for Core Services other than Reference Strip shall be
proportionately adjusted in accordance with the past practices of the
Partnership, as illustrated

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for four products in Exhibits I through IV of Schedule 4.01. Except as otherwise
expressly stated in this Agreement, the prices specified in Schedule 4.01
include all of MSCWC's charges for electrogalvanizing materials and processing
costs.

          SECTION 4.02. Toll for Ancillary Services. ISG shall pay fees to MSCWC
for Ancillary Services as set forth on Schedule 4.02 hereto. Schedule 4.02 also
sets forth the fees that MSCWC may charge ISG for the idle Line Time required to
(a) switch from the Zinc Process to the Zinc-Nickel Process (a "Mode Change") or
(b) interrupt at ISG's request the existing schedule of production to run an
urgent order from ISG (a "Schedule Break").

          SECTION 4.03. Adjustment to Toll for Coating Services. If during the
Term ISG makes a request of MSCWC for Core Services different from those
previously provided by the Partnership under the Prior Agreement, the parties
shall negotiate in good faith the terms under which MSCWC would perform such
Core Services under this Agreement.

          SECTION 4.04. Electricity, Taxes and Insurance Costs. MSCWC has
informed ISG that the price provisions applicable during the Term hereof exclude
certain fixed electricity, taxes and insurance costs and that any pricing
subsequent to the Term will include such costs.

          SECTION 4.05. Utility Curtailment. Whenever during the Term MSCWC is
notified by a utility provider of a utility curtailment that will affect the
Facility, MSCWC shall promptly notify ISG of such utility curtailment, whereupon
ISG shall have the option to require MSCWC to continue to produce in accordance
with Firm Orders previously received. If ISG elects to exercise such option, the
higher utility rates related to such utility curtailment shall be borne by ISG.
If ISG elects not to exercise such option, 25% of all idle Line Time related to
such utility curtailment shall be deducted from the maximum amount of time on
the Line set forth in Section 3.02 hereof for the month in which the utility
curtailment occurs and to the extent necessary to treat all customers fairly, an
appropriate adjustment shall be made in any applicable Firm Order previously
received by MSCWC pursuant to Section 6.03 hereof.

                                   ARTICLE V

                      Substrate Quantity; Substrate Quality

          SECTION 5.01. Substrate Quantity. With respect to each Firm Order, ISG
shall provide MSCWC with the amount of ISG Substrate sufficient to utilize the
ISG Line Time. If the Line becomes idle as a result of ISG's failure to deliver
ISG Substrate sufficient to utilize the ISG Line Time and a corresponding
Purchase Order to MSCWC, ISG shall pay MSCWC $2,200 per such unused hour of ISG
Line Time (which shall be MSCWC's exclusive remedy).

          SECTION 5.02. Substrate Quality. MSCWC shall promptly advise ISG if
all or part of any shipment of ISG Substrate is obviously damaged or defective.
MSCWC shall have no obligation to perform Coating Services on any damaged or
defective ISG Substrate.

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                                   ARTICLE VI

                                   Operations

          SECTION 6.01. Operation of the Facility. MSCWC currently maintains and
shall maintain the capability of the Facility to receive ISG Substrate and to
ship Coated ISG Substrate and Finished Substrate via rail and/or truck as
requested by ISG.

          SECTION 6.02. Communication of ISG Inventory Information. MSCWC will
electronically communicate inventory information regarding ISG Inventory using
the same EDI systems as used under the Prior Agreement. If ISG determines to
change to a different system or different procedures under the same system, any
additional costs will be passed on to ISG.

          SECTION 6.03. Firm Orders. Ninety (90) days prior to the beginning of
each calendar month during the Term, ISG shall deliver to MSCWC a firm order
(each, a "Firm Order") for the amount of time on the Line to be used during such
month to provide Core Services for ISG (with the amount of time on the Line
required for Core Services utilizing each of the Zinc Process, the Zinc-Nickel
Process or the Roll Process set forth separately therein); provided, that
without the written consent of MSCWC, the ISG Line Time with respect to each
such Firm Order shall not exceed the maximum amount of time on the Line set
forth in Section 3.02 hereof for the respective month; and provided, further,
that for the month of May and June, 2003, the "firm orders" that MSCWC has
received from Bethlehem Steel Corporation under the Prior Agreement shall be
deemed to be the Firm Orders of ISG hereunder and for the month of July, 2003,
ISG need not deliver its Firm Order to MSCWC until May 31, 2003.

          SECTION 6.04. Purchase Orders. At least thirty (30) days prior to the
performance by MSCWC of any Core Services, ISG shall deliver to MSCWC a purchase
order (each, a "Purchase Order") for the performance of such Core Services. Each
Purchase Order shall set forth the specifications for Core Services (which
specifications shall be within the reasonable capabilities of the Line) and the
delivery points and scheduled delivery dates for Coated ISG Substrate. In the
event that ISG requests MSCWC to perform Ancillary Services on all or part of
such Coated ISG Substrate, the delivery points and dates set forth in the
Purchase Order shall, absent written notification by ISG to MSCWC, also apply to
the delivery of Finished Substrate. In the event of any inconsistency between
the terms of a Purchase Order and this Agreement, this Agreement shall govern.
ISG shall order Core Services in a reasonably level manner so that excessive
productivity demands will not be placed on the MSCWC's operation of the Facility
during any unit of time. ISG acknowledges that such scheduled delivery dates
will necessarily be approximate, and MSCWC may make such adjustments from time
to time as are reasonably necessary or advisable to achieve economic and
efficient order sizes, to make efficient use of available Substrate and raw
materials and otherwise to maximize efficiency and levels of production.

          SECTION 6.05. Priority of Firm Orders; Modification of Purchase Orders

               (a) ISG may at any time notify MSCWC of any priority within any
Firm Order or Purchase Order and MSCWC shall, to the extent reasonably
practicable, utilize the

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Processes requested by ISG to process ISG Substrate in accordance with the
priority set forth in any such notification and shall allocate production time
on the Line in an equitable manner between Core Services and the coating of
other Substrate.

               (b) ISG may, at any time prior to the commencement of coating ISG
Substrate, notify MSCWC of changes in the specifications for all or part of a
Purchase Order, which specifications shall be within the reasonable capabilities
of the Line and otherwise in accordance herewith, and MSCWC shall, to the extent
reasonably possible, utilize the Processes requested by ISG to coat such ISG
Substrate in accordance with such changed specifications.

               (c) In utilizing the Processes requested by ISG to coat ISG
Substrate, MSCWC will comply, to the extent reasonably possible, with any
reasonable request (including, without limitation, changes to delivery points
and scheduled delivery dates) made by ISG provided that MSCWC shall not be
required: (i) to comply with any request that would result in unfair or
inequitable treatment of others who have ordered time on the Line or (ii) to
follow any practices which are not commercially reasonable or consistent with
the effective utilization of the Line.

          SECTION 6.06. Shipment, Handling of ISG Substrate.

               (a) ISG shall be responsible for arranging and paying for the
shipment of ISG Substrate to the Facility and for any risk of loss associated
with such shipments.

               (b) MSCWC shall be responsible for unloading (after removal of
bracing materials and covers, if any) all ISG Substrate delivered by or on
behalf of ISG to the Facility and so shall unload ISG Substrate in accordance
with customary industry practices. MSCWC shall load and unload carriers
expeditiously to avoid delays and shall be liable for the detention of ISG
trucks caused by MSCWC; provided that carriers comply with their scheduled
appointment times. MSCWC shall be liable for all rail demurrage charges which
result from delays caused by MSCWC that extend beyond its free time. The parties
shall work together to avoid delivery or shipping schedules that will over-tax
the normal capacity and operation of the Facility. If any request is made by ISG
for MSCWC to depart from the customary industry practices referred to in this
Section 6.06(b), the parties shall negotiate in good faith toward fulfilling
such request.

          SECTION 6.07. Shipment, Handling of Coated and Finished ISG Substrate.

               (a) MSCWC shall be responsible for arranging, and ISG shall be
responsible for paying for, all shipments of Coated ISG Substrate and/or
Finished Substrate from the Facility pursuant to the following procedures:

               (1) ISG shall furnish MSCWC with written carrier routing
                   instructions for delivery of Coated ISG Substrate and
                   Furnished Substrate, which instructions shall list the
                   routings numerically in order of dispatch priority along with
                   the carrier's phone number. Unless modified by such
                   instructions, MSCWC shall ship Coated ISG Substrate and/or
                   Finished Substrate to the address stated on the relevant
                   Purchase Order. If ISC changes such instructions, ISG

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                         shall reimburse MSCWC for any demurrage charges for
                         rail cars ordered by MSCWC in accordance with the
                         original instructions.

                    (2)  Unless ISG instructs MSCWC otherwise, all Coated ISG
                         Substrate and Finished Substrate shall be shipped on a
                         per coil basis, oldest coils first. In the event that
                         MSCWC does not so ship Coated ISG Substrate or Finished
                         Substrate, MSCWC shall be liable to ISG for losses
                         caused by deterioration of aged Coated ISG Substrate
                         and/or Finished Substrate.

                    (3)  In the event that all approved carriers refuse ISG's
                         freight of Coated ISG Substrate and/or Finished
                         Substrate, MSCWC shall contact ISG's external
                         transportation department and such department shall
                         give MSCWC alternative carriers to call. If MSCWC is
                         unable to reach such department to obtain alternative
                         carriers, then MSCWC may use such other carriers as
                         necessary to meet ISG's delivery requirements.

                    (4)  MSCWC shall invoice ISG on a timely basis.

                    (5)  MSCWC shall allocate sufficient storage at the Facility
                         to accommodate ISG Inventory, which storage space shall
                         be approximately equal to the product of (i) the
                         percentage of all Scheduled Line Time subject to Firm
                         Orders from ISG for the following quarter and (ii) the
                         Floor Space available for the storage of Substrate.
                         MSCWC shall store, and provide protection for, such ISG
                         Inventory stored at the Facility in accordance with
                         customary industry practice; provided, however, that
                         when the ISG Inventory stored at the Facility equals
                         the storage space allocated to ISG Inventory pursuant
                         to the immediately preceding sentence, MSCWC shall
                         immediately provide written notice to ISG and,
                         forty-eight hours after delivery of such notice, shall
                         have the right to refuse receipt of additional ISG
                         Substrate for so long as the ISG Inventory stored at
                         the Facility equals the storage space allocated to ISG
                         Inventory pursuant to the immediately preceding
                         sentence.

                    (6)  Coated ISG Substrate and/or Finished Substrate not
                         shipped after 90 days will be subject to the storage
                         fees at the rate of $10 per ton per month.

                    (b)  MSCWC shall execute Trip Title of Coated ISG Substrate
and/or Finished Substrate, subject to any mechanic's, serviceman's, bailee's or
similar liens to which MSCWC is entitled, within twenty-four hours of the date
such information is provided by ISG to MSCWC.

                SECTION 6.08. Scrap. Scrap allowance will be credited at the
beginning of each month for line scrap generated the previous month using the
price for #1 dealer bundles as

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quoted by American Metal Market for the month the scrap was generated as the
average of Detroit, Chicago and Pittsburgh, less a $40.00 per ton handling fee.
In the event American Metal Market no longer publishes such information, the
parties shall mutually agree on an appropriate source for such scrap price.
MSCWC shall maintain records of scrap sales and shall, upon ISG's reasonable
request, grant ISG access to all such records.

          SECTION 6.09. Claim Policy. In the event that: (a) due to a breach by
MSCWC of the warranty set forth in Section 7.02, ISG or a customer of ISG
rejects, in whole or in part, any Coated ISG Substrate or Finished Substrate;
(b) MSCWC damages, destroys or loses ISG Inventory (other than normal scrap);
(c) improper processing, storage, clerical or other error on the part of MSCWC
causes ISG Inventory (other than normal scrap) to lose value; or (d) MSCWC fails
to correct or report to ISG any defects in or affecting ISG Inventory that are
reasonably discoverable by MSCWC in the course of its operations, whether such
defects are caused by ISG, MSCWC or another party; then MSCWC shall reimburse
ISG for all fees for Coating Services associated with such Coated ISG Substrate,
Finished Substrate or ISG Inventory ("Claim Product"). The parties shall, with
due diligence, work amicably together to resolve disputes over the underlying
cause of such Claim Product defects. MSCWC's obligation as set forth herein
shall not terminate until a buyer has accepted such Claim Product or has waived
such acceptance as a condition for payment for such Claim Product by such buyer.
ISG's rights under this Section 6.09 shall be its exclusive remedy for Claim
Product and in no event shall MSCWC be liable for any consequential damages or
lost profits.

          SECTION 6.10. Insurance. MSCWC shall maintain in force at its sole
cost and expense general comprehensive liability insurance in an amount not less
than $2,000,000 in the aggregate, $1,000,000 per occurrence and excess liability
coverage in the form of a $4,000,000 umbrella policy (per occurrence and in the
aggregate). If requested by ISG, MSCWC shall provide ISG with a certificate of
insurance covering MSCWC's insurance obligations. Such certificate shall name
ISG as an additional insured and shall contain a statement that ISG will be
notified by the insurer in writing at least thirty (30) days before any material
policy change or cancellation or non-renewal is effected.

          SECTION 6.11. ISG Inventory. For the Term and for a period of six (6)
months thereafter, MSCWC shall provide ISG reasonable access to its records
relating to ISG Inventory. MSCWC shall perform a physical inventory of ISG
Inventory at least once every calendar year. In addition, MSCWC shall, upon
request of ISG during the Term (made not more than once in any calendar year),
permit ISG (or its designees) to conduct a physical inventory of all ISG
Inventory then held by MSCWC. In the event that ISG and MSCWC disagree as to the
amount of ISG Inventory, then the general manager of purchasing of ISG and the
Plant Manager of MSCWC shall meet and in good faith attempt to equitably
determine the amount of ISG Inventory.

          SECTION 6.12. Inspection. MSCWC shall employ customary inspection
techniques on ISG Substrate, Coated ISG Substrate and Finished Substrate during
the performance of the Coating Services, unless directed by ISG in a Purchase
Order or other written instruction; provided that in any event, MSCWC shall not
be responsible for failure to detect any defect in any Coated ISG Substrate or
Finished Substrate which could not have been reasonably discovered during
inspection of such Substrate using its practices under the Prior Agreement.

<PAGE>

          SECTION 6.13. Customer Service. ISG shall be responsible for rendering
advice and providing other assistance to ISG customers relating to Coated ISG
Substrate and/or Finished Substrate. At the reasonable request of ISG, MSCWC
shall make qualified personnel available at any location reasonably specified by
ISG or any ISG customer to assist ISG or such customer with respect to the
provision of advice and assistance relating to Coated ISG Substrate or Finished
Substrate. To the extent that ISG or an ISG customer reasonably specifies the
number and/or qualifications of such personnel, MSCWC shall use its reasonable
efforts to provide such personnel to ISG or such ISG customer. Services to be
provided by such personnel may include the investigation of claims or complaints
relating to the coating and/or the slitting of Finished Substrate.

          SECTION 6.14. Compliance with Laws. MSCWC warrants that: (i) no
infringement of any patents shall arise from MSCWC's use of the Processes and
the performance of Core or Ancillary Services; and (ii) subject to Section 7.03
hereof, as of the date of shipment all Coated ISG Substrate or Finished
Substrate supplied to ISG or to an ISG customer will have been processed and
loaded for shipment in accordance with all applicable laws, ordinances, rules
and regulations relating thereto. Without limiting the generality of the
foregoing, MSCWC warrants that any Coated ISG Substrate and Finished Substrate
processed and loaded for shipment by it will be processed and loaded for
shipment in accordance with the Fair Labor Standards Act of 1938, as amended.

          SECTION 6.15. Indemnification.

               (a) MSCWC shall indemnify ISG and its Affiliates against, and
hold them harmless from, any losses, damages, liabilities, costs or expenses,
including, without limitation, the reasonable fees and out-of-pocket expenses of
attorneys retained by MSCWC to defend ISG, arising out of or relating to: (i) a
breach by MSCWC of any of its representations or warranties in this Agreement;
or (ii) any breach by MSCWC of this Agreement; provided that ISG may also be
represented in any action, at its own expense, by attorneys of its own choice.

               (b) ISG shall indemnify MSCWC, MSC and their Affiliates against,
and hold them harmless from, any losses, damages, liabilities, costs or
expenses, including, without limitation, the reasonable fees and out-of-pocket
expenses of attorneys retained by ISG to defend MSCWC, arising out of or
relating to: (i) any breach by ISG of any of its representations and warranties
in this Agreement; or (ii) any breach by ISG of this Agreement; provided that
MSCWC may also be represented in any action, at its own expense, by attorneys of
its own choice.

                                  ARTICLE VII

                          General Terms and Conditions

          SECTION 7.01. Force Majeure. Neither party shall be liable or
responsible to the other party for any delay in or failure of performance of its
obligations under this Agreement to the extent such delay or failure is
attributable to any cause beyond its control, including, without limitation, any
act of God, fire, accident, strike or other labor difficulties, war,

<PAGE>

embargo or other governmental act, riot or economic conditions that make
continued operation of the Facility commercially unreasonable; provided,
however, that the party affected thereby gives the other party prompt written
notice of the occurrence of any event which is likely to cause any delay or
failure and sets forth its best estimate of the length of any delay and any
possibility that it shall be unable to resume performance; and provided,
further, that said affected party shall use reasonable commercial efforts to
expeditiously overcome the effects of that event and resume performance.

          SECTION 7.02. Warranty. MSCWC warrants to ISG that all Coated ISG
Substrate and Finished Substrate shipped by MSCWC pursuant to this Agreement
shall be in conformity with the specifications set forth by ISG in the related
Purchase Order (as such Purchase Order may be modified from time to time
pursuant to Section 6.05 hereof) which sp ecifications shall be within the
reasonable capabilities of the Line; provided, however, that ISG's payment for
services provided hereunder shall not be deemed to waive any such warranty.
MSCWC further warrants that, subject to Section 7.05 hereof, all Coated ISG
Substrate and Finished Substrate shipped by MSCWC pursuant to this Agreement
shall be delivered free from any security interest, lien or other encumbrance
created by MSCWC, other than any liens of the carrier to whom MSCWC delivers
such ISG Substrate for shipment. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION
7.02, MSCWC MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED
WARRANTY OF MERCHANTABILITY, OF FITNESS FOR A PARTICULAR PURPOSE OR ARISING FROM
USAGE OF TRADE. In no event will MSCWC be liable for damage to Coated ISG
Substrate or Finished Substrate caused by customer storage practices.

          SECTION 7.03. Trademarks, etc. All ISG Substrate coated by MSCWC
pursuant to this Agreement shall bear the trademark or brand name requested by
ISG. ISG represents and warrants to MSCWC that the application of each such
trademark or brand name by MSCWC has been duly authorized and will not violate
the trademark or other rights of any other Person.

          SECTION 7.04. Title to Substrate and Products. Subject to Section
6.07(b), Section 6.08 and Section 6.09 hereof, ISG shall at all times retain
title to all ISG Inventory (other than normal line scrap). MSCWC agrees that
under no circumstances shall it hold itself out as being the owner of any ISG
Inventory on its premises, including, without limitation, on MSCWC's books and
records. Risk of loss shall pass to ISG upon delivery of the Coated or Finished
Substrate to the carrier.

          SECTION 7.05. UCC Filings. Notwithstanding Section 7.04 hereof, the
parties hereto intend to create in MSCWC the relationship of bailee and
processor with respect to any ISG Inventory in the possession of MSCWC and agree
that upon the request of ISG, an informational or precautionary filing shall be
made pursuant to the Uniform Commercial Code in effect in each jurisdiction
where any ISG Inventory is being held by MSCWC. Following any such request, ISG
and MSCWC shall execute and file such instruments, including financing
statements and related amendments or continuation statements, and take such
other actions as may be deemed by either of them to be necessary or desirable in
order to fully protect the rights of ISG in and to the ISG Inventory. Nothing in
this Section 7.05 or in any instrument executed, delivered or filed pursuant
hereto, and no action or omission on the part of any party hereto, shall

<PAGE>

change the fact than the ISG Inventory is legally and equitably owned by ISG and
is held by MSCWC as a bailee and processor only. MSCWC shall inform ISG, in
writing and within thirty (30) days of becoming so aware, of any financing
statement filed by a creditor of MSCWC against the ISG Inventory held by MSCWC
at the Facility.

          SECTION 7.06. Liens. The parties understand and agree that MSCWC shall
have a processor's and bailee's lien on all ISG Substrate that is located at the
Facility and has been processed under this Agreement to secure the payment of
any and all amounts due from ISG or any of its Affiliates hereunder; provided,
however, that MSCWC hereby waives any lien rights it may have with respect to
ISG Substrate located at the Facility until such time as it is processed under
this Agreement.

                                  ARTICLE VIII

                             Procedures for Payment

          SECTION 8.01. Method of Payment. All amounts payable hereunder shall
be paid at such place or to such account as the party entitled to such payment
shall reasonably specify in writing. Each payment shall be made in immediately
available funds prior to 12:00 noon local time at the place of payment, on the
scheduled date when such payment shall be due, unless such scheduled date shall
not be a Business Day, in which case such payment shall be made on the next
succeeding Business Day.

          SECTION 8.02. Late Payment. If any amount payable hereunder is not
paid when due, the paying party shall pay interest (to the extent permitted by
law) on such overdue amount from and including the due date thereof to but
excluding the date of payment thereof (unless such payment shall be made after
12:00 noon local time at the place of payment, on such date of payment, in which
case such date shall be included) at a rate per annum equal to the Prime Rate
plus 3 percent per annum. If any amount payable hereunder is paid on the date
when due, but after 12:00 noon local time at the place of payment, interest
shall be payable as aforesaid for one day.

          SECTION 8.03. Timing of Payments. ISG shall pay MSCWC for Coating
Services provided hereunder net thirty (30) days from the date the Coated ISG
Substrate and/or Finished Substrate has been produced, subject to the following:
All shipments and delivery of Coated ISG Substrate and/or Finished Substrate are
at all times subject to credit approval by MSCWC. Whenever MSCWC for any reason
shall be in doubt as to the responsibility of ISG, MSCWC may decline to make
shipments except on receipt of cash in advance or upon conditions and security
satisfactory to MSCWC. Invoices not paid within terms specified herein shall be
cause to withhold current shipments or defer processing of open orders.

                                   ARTICLE IX

                                   Termination

          SECTION 9.01. Termination Due to Bankruptcy. Notwithstanding Section
7.01 hereof, either party may immediately terminate this Agreement upon the
Bankruptcy of the

<PAGE>

other party by written notice to the other party; provided that in the event of
the Bankruptcy of MSCWC, ISG may enter the Facility and take possession of all
ISG Inventory and, without limiting any rights granted hereunder, take such
actions as are permitted by law to protect ISG's interest and to enforce MSCWC's
obligations hereunder.

          SECTION 9.02. Termination Due to Material Breach. If either party
materially defaults in the performance of any of its obligations under this
Agreement, which default is not substantially cured within fifteen (15) days
after notice is given to the defaulting party specifying the default and
referencing this Section 9.02, then the party not in default may, by giving
notice to the defaulting party, terminate this Agreement as of a date specified
in such notice of termination. Notwithstanding the foregoing, with respect to
material defaults that cannot reasonably be cured within fifteen (15) days, it
will not be a default under this Section 9.02 if the defaulting party in good
faith submits a corrective action plan to cure such default, reasonably
acceptable to the other party, within fifteen (15) days of receipt of the notice
of default, and thereafter proceeds with due diligence to carry out such plan to
conclusion; provided that the Term shall not be suspended or extended by any
such cure period.

                                   ARTICLE X

                                     Audits

          SECTION 10.01. Audits. ISG has the right to hire a firm of independent
certified accountants of recognized standing to monitor, investigate and verify
the proper performance of the MSCWC's obligations hereunder. MSCWC shall permit
such accountants to inspect records relating to such obligations during normal
business hours and shall make available in a reasonably timely manner all
current data reasonably deemed necessary by the auditors to perform their task.

                                   ARTICLE XI

                                  MSC Guarantee

          SECTION 11.01. Guarantee. MSC unconditionally guarantees the
performance by MSCWC of all of MSCWC's obligations under this Tolling Agreement
(subject to the conditions thereto set forth herein).

<PAGE>

                                  ARTICLE XII

                                  Miscellaneous

          SECTION 12.01. Independent Contractor. MSCWC is an independent
contractor and this Agreement will not create a principal-agent,
employee-employee, partnership or joint venture relationship between MSCWC and
ISG. Each party shall be solely responsible for all of its acts and the acts of
their respective agents, employees and subcontractors. Without limiting the
generality of the foregoing, ISG shall be solely responsible for any personal
injuries or property damage caused or incurred by ISG's employees at the
Facility.

          SECTION 12.02. Confidentiality. Each party and its Affiliates shall
treat the existence of this Agreement, the schedules and attachments hereto and
all data and information furnished by a party or an Affiliate to the other party
hereto or its Affiliates which is marked "Confidential", or contains a similar
proprietary notice clause, as confidential and shall take or cause to be taken
such reasonable precautions as such party takes to safeguard its own
confidential information to prevent disclosure of the existence of this
Agreement and all such data and information to others for a period of three
years from the termination of this Agreement; provided, however, that this
obligation shall not be applicable:

                 (a)  to disclosure to public authorities to the extent required
by applicable law, including, without limitation, any applicable securities laws
or stock exchange rules; provided, however, that the party required to disclose
the existence of this Agreement or any confidential data or information shall
have given the other party prompt written notice thereof so that the other party
may seek a protective order or other appropriate remedy;

                 (b)  to the extent the existence of this Agreement or such data
or information was part of the public domain at the time of its disclosure to
such party;

                 (c)  to the extent the existence of this Agreement or such data
or information became generally available to the public or otherwise part of the
public domain after its disclosure other than through any act or omission of a
party or its Affiliate in breach of this Agreement;

                 (d)  to the extent the existence of this Agreement or such data
or information was subsequently disclosed to such party by a third party on a
non-confidential basis who had no obligation to either party (whether directly
or indirectly) not to disclose the existence of this Agreement or such data or
information; or

                 (e)  to the extent that a party can demonstrate that such data
or information was in such party's possession at the time of disclosure and was
not acquired, directly or indirectly, from the other party or an Affiliate on a
confidential basis.

          SECTION 12.03. Notices. All notices hereunder shall be in writing and
shall be personally delivered or sent via reputable overnight courier or
facsimile. Such notices shall be addressed respectively: All notices hereunder
shall be in writing and shall be personally delivered or sent via reputable
overnight courier or facsimile. Such notices shall be addressed respectively:

<PAGE>

           if to MSC or MSCWC, to:

                 Material Sciences Corporation
                 2200 Pratt Boulevard
                 Elk Grove Village, IL 60007

                 Attention of Chief Financial Officer
                 Telecopier:  847-718-8643

           with a copy to:

                 Sidley Austin Brown & Wood
                 10 South Dearborn Street
                 Bank One Plaza
                 Chicago, IL 60603

                 Attention of Jon M. Gregg
                 Telecopier: 312-853-7036

           if to ISG or ISG Sub, to:

                 International Steel Group Inc.
                 3250 Interstate Drive, 2/nd/ Floor
                 Richmond, Ohio 44286-9000

                 Attention of Mr. Gordon Spelich
                 Telecopier: 330-659-9132

           with a copy to:

                 Jones, Day, Reavis & Pogue
                 North Point, 901 Lakeside Avenue
                 Cleveland, Ohio 44114-1190

                 Attention of David Watson
                 Telecopier:  216-579-0212

or to such other address or telecopier number as such party may hereafter
specify for the purpose of providing notice to the other parties. Each such
notice, request or other communication shall be effective (i) if given by
facsimile, when such facsimile is transmitted to the telecopier number specified
in this Section 12.03 and the transmission of the appropriate number of pages is
confirmed or (ii) if given by any other means, when delivered at the address
specified in this Section 12.03.

          SECTION 12.04. Third Parties. Nothing in this Agreement, whether
express or implied, is intended to confer any rights or remedies under or by
reason of this Agreement on any persons other than the parties hereto and their
respective successors and permitted assigns.

<PAGE>

          SECTION 12.05. Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their successors and
permitted assigns; provided that except in the case of an assignment of this
Agreement by MSCWC to a Person who is the purchaser of the Facility, no party
hereto shall be permitted to assign any of its obligations under this Agreement
to any other Person without the written consent of each of the other parties
hereto.

          SECTION 12.06. Headings. Headings are for ease of reference only and
shall not form a part of this Agreement.

          SECTION 12.07. Survival. Articles I, II and XIII and Sections 6.09,
7.02, 12.02, 12.07, 12.09 and 12.11 shall survive the termination of this
Agreement.

          SECTION 12.08. Extension of Time for Performance. If this Agreement
calls for any action to be taken on or by a date which is not a Business Day,
such action shall be deemed to be required to be taken on or by the next
succeeding Business Day.

          SECTION 12.09. Governing Law; Entire Agreement.

                 (a)   This Agreement shall be construed in accordance with and
governed by the law of the State of Illinois without giving effect to the
principles of conflicts of laws thereof which might cause the laws of any other
jurisdiction to govern this Agreement.

                 (b)   This Agreement, the schedules and attachments hereto and
the documents referred to herein to be executed contemporaneously herewith
embody the entire agreement of the parties hereto with respect to the subject
matter hereof and supersede all prior agreements with respect thereto.

          SECTION 12.10. Incorporation of Schedules. The schedules identified in
this Agreement are incorporated herein by reference and made a part hereof.

          SECTION 12.11. Amendments and Waivers.

                 (a)   Any provision of this Agreement may be amended or waived
if, but only if, such amendment or waiver is in writing and is signed, in the
case of an amendment, by each party to this Agreement, or in the case of a
waiver, by the party against whom the waiver is to be effective.

                 (b)   No failure or delay by any party in exercising any right,
power or privilege hereunder shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The rights and
remedies herein provided shall be cumulative and not exclusive of any rights or
remedies provided by law.

          SECTION 12.12. Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original and all of which
taken together shall constitute a single agreement. This Agreement shall become
a binding agreement when

<PAGE>

each party hereto shall have received a counterpart hereof signed by each of the
other parties hereto.

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the day and year first above written.

                                  INTERNATIONAL STEEL GROUP INC.

                                  By:  /s/ Gordon Spelich
                                       ------------------
                                       Name:  Gordon Spelich
                                       Title: Vice President

                                  MSC WALBRIDGE COATINGS INC.

                                  By:  /s/ James J. Waclawik, Sr.
                                       --------------------------
                                       Name:  James J. Waclawik, Sr.
                                       Title: Vice President, Chief
                                              Financial Officer and Secretary

                                  MATERIAL SCIENCES CORPORATION

                                  By:  /s/ James J. Waclawik, Sr.
                                       --------------------------
                                       Name:  James J. Waclawik, Sr.
                                       Title: Vice President, Chief
                                              Financial Officer and Secretary

<PAGE>

                                 Exhibit Index

Attachment I          Scrap Policy

Schedule 4.01         Tolls for Core Services

Schedule 4.02         Tolls for Ancillary Services<PAGE>

                                                                  Exhibit 10(cc)

                          MATERIAL SCIENCES CORPORATION

                          SUPPLEMENTAL RETIREMENT PLAN

                       (as amended through June 17, 1998)

<PAGE>

                                    ARTICLE I
                                    ---------
                                   Definitions
                                   -----------

     When used in this Plan, the terms defined below shall be construed in
accordance with the definitions herein set forth unless the context clearly
requires otherwise:

     1.01 Actuarial Equivalent. A benefit is the actuarial equivalent of any
other benefit if the actuarial reserve required to provide the benefit is equal
to the actuarial reserve required to provide such other benefit, computed on the
basis of the following assumptions: an interest rate of 7% and mortality based
upon the 1971 Group Annuity Tables for Males with respect to Participants, and
the 1971 Group Annuity Table for Females with respect to Beneficiaries. Once
determined, no adjustment for an Actuarial Equivalent shall be made because such
rates, tables and procedures are changed subsequent to such determination.

     1.02 Committee. Committee means the Administrative Committee appointed to
administer and interpret the Plan pursuant to Article V.

     1.03 Company. Material Sciences Corporation, a Delaware corporation, and
any Related Employer which adopts this Plan with the consent of Material
Sciences Corporation.

     1.04 Compensation. Compensation shall mean all compensation (including
bonus pay and commissions, but excluding any Participant's share in any Company
contributions to any employee benefit plan or insurance program maintained by
the Company) paid during the Plan Year by the Company or a Related Entity to the
Participant for services performed for the Company. Compensation shall also
include Participant contributions made pursuant to a salary reduction agreement
which is not includable in the gross income of the Participant under Internal
Revenue Code Section 125 or 402 (a) (8).

     1.05 Disability. Disability shall mean the termination of the Participant's
employment because of his total and permanent disability which, in the opinion
of a physician selected by the Committee, will render the Participant unable to
perform the material duties of his employment with the Company for a substantial
indefinite period of time.

     1.06 Final Average Compensation shall mean the aggregate Compensation paid
to the Participant for the five consecutive calendar years of the ten full
calendar years preceding his Termination of Service or Retirement during which
the Participant's compensation was the highest divided by 60.

     1.07 Participant. Any individual who is selected for participation
hereunder and agrees to be bound by the Plan's terms and provisions in
accordance with Article II.

     1.08 Related Entity. Related Entity shall mean the Company and any
corporation, firm or other enterprise on or after the date such corporation or
business is along with the Company a member of a controlled group of
corporations as defined in Section 414(b) of the Internal Revenue Code or a
member of a group of trades or businesses under common control as defined in
Section 414(c) of the Code.

<PAGE>

     1.09 Retirement. Severance of the Participant's employment with the Company
on or after the later of (a) the Participant's 60th birthday or (b) the tenth
anniversary of his date of hire; provided, however, nothing in this Plan shall
require a Participant to retire at any particular time, retirement being subject
to the basic personnel policies of the Company. To the extent a Participant
continues his employment with the Company beyond his 60th birthday, he may
continue to participate in this Plan.

     1.10 Social Security Benefit. The Social Security Benefit shall mean the
estimated monthly amount available to a Participant at age 65 (or upon actual
retirement, if later) under the provisions of Title II of the Social Security
Act in effect at the time of his termination of employment, without regard to
any increases in the wage base or benefit levels that take effect after the date
of termination of employment, subject to the following: If the Participant
actually retires prior to age 65, his Social Security Benefit shall be estimated
for assuming continuation of his current annual Compensation until age 65 at the
same rate in effect at the date of determination. The fact that a Participant
does not actually receive such amount because of a failure to apply or
continuance of work, or for any other reason, shall be disregarded.

     1.11 Spouse. The Spouse of the Participant to whom the Participant was
legally married for a period of one year at the time of the Participant's death.

     1.12 Termination of Service. The severance of the Participant's employment
with the Company prior to his Retirement other than by reason of his death or
Disability.

     1.13 Year of Service. A Participant shall be credited with one year of
service on each anniversary of his date of hire provided he has been
continuously employed by the Company or a Related Entity during the preceding 12
months.

                                   ARTICLE II
                                   ----------
                          Eligibility for Participation
                          -----------------------------

     2.01 Participation. Participation in the Plan shall be limited to those
employees of the Company who are designated as Participants by the Board of
Directors of the Company in their complete and absolute discretion; provided the
employee so designated elects to participate in accordance with Section 2.02.

     2.02 Agreement to Participate. Each employee who is selected for
participation in the Plan in accordance with Section 2.01 shall become a
Participant upon the filing of a written agreement to abide by the terms and
provisions of the Plan and to cooperate in providing information, availability
for physical examinations and other action necessary to the proper
administration of the Plan as required under Section 7.07.

                                  ARTICLE III
                                  -----------
                                    Benefits
                                    --------

     3.01 Normal Retirement Benefit. A Participant who terminates his employment
at or after the later of his attainment of age 65 or completion of 10 Years of
Service shall be entitled to a monthly "Normal Retirement Benefit" for the
benefit period set forth in Section 4.01 equal to the product obtained by
multiplying (a) his Final Average Compensation times (b) the number of

                                       3

<PAGE>

his Years of Service (not to exceed thirty) times (c) his Benefit Percentage (as
described below), such product to be reduced by the sum of (i) and (ii):

               (i) The amount of his Social Security Benefit at the time his
          Normal Retirement Benefit becomes payable, reduced by 5/9 of 1% for
          each full month by which the benefit commencement date precedes his
          attainment of age 65 but not to exceed 36 months; and

               (ii) The monthly amount payable, determined at the time his
          Normal Retirement Benefit under the Plan would commence to the
          Participant, under any tax-qualified pension or retirement plan
          (including any Retirement Account under the Company's Savings and
          Investment Plan (the "SIP Plan") but not including the Employee's
          Regular (Matching), Before-Tax and After-Tax Accounts under the SIP
          Plan) maintained by the Company or by any other employer in the past
          or future. If the benefit under any such pension or retirement plan is
          payable in a form other than a single life annuity or commences
          earlier or later than the date the Normal Retirement Benefit commences
          hereunder, such benefit shall be adjusted to the Actuarial Equivalent
          of a single life annuity commencing on the date the Normal Retirement
          Benefit commences hereunder, reduced by 5/9 of 1% for each month by
          which the benefit commencement date precedes his attainment of age 65.

The Benefit Percentage applicable in computing the Normal Retirement Benefit
shall be determined by the age of the Participant on his date of hire in
accordance with the following schedule:

           Age at Date of Hire                      Benefit Percentage
           -------------------                      ------------------

           Under 40                                       2.00%
           40 through 49                                  2.25%
           50 or older                                    2.50%

     3.02 Early Retirement Benefit. A Participant who terminates his employment
before he is entitled to a Normal Retirement Benefit, but after his
qualification for Retirement shall be entitled to an Early Retirement Benefit
equal to his Normal Retirement Benefit (computed in accordance with Section
3.01) reduced by a percentage based upon his age at benefit commencement payable
for the period specified in Section 4.01:

                  Age at Benefit           Early Retirement Benefit
                   Commencement              Reduction Percentage
                 -----------------        ---------------------------
                        60                          25.0%
                        61                          20.5%
                        62                          16.0%
                        63                          11.5%
                        64                           7.0%

                                        4

<PAGE>

     3.03 Termination of Service Benefit. If the Participant terminates his
employment with the Company prior to his attainment of age 60 for a reason other
than death or Disability but after completion of 10 Years of Service, the
Participant shall be entitled to the Normal Retirement Benefit set forth in
Section 3.01 commencing upon his attainment of age 65 or with the consent of the
Committee, such a Participant may request earlier commencement of his benefit
(but not earlier than his qualification for Retirement), subject to the
reduction provided in Section 3.02, provided the Participant is living on the
benefit commencement date.

     3.04 Disability Benefit. If the Participant's termination of employment
occurs as a result of a Disability, the Participant shall be entitled to the
Normal Retirement Benefit provided under Section 3.01 commencing at age 65 or,
at the election of the Participant, an Early Retirement Benefit provided under
Section 3.02 commencing prior to his attainment of age 65, but not earlier than
his attainment of age 60, provided the Participant is living on the benefit
commencement date.

     3.05 Death Benefit. In the event of the death of the Participant prior to
his completion of 10 Years of Service, the Participant's Spouse shall be
entitled to an amount equal to 50% of the Normal Retirement Benefit to which the
Participant would have been entitled based upon his Years of Service prior to
death, commencing on the earliest date on which the Participant would have been
eligible for Retirement had he lived.

                                   ARTICLE IV
                                   ----------
                             Distribution of Benefit
                             -----------------------

     4.01 Benefit Commencement. The benefits payable under Article III shall
commence as of the first day of the month following the Participant's Retirement
in the case of a benefit payable under Section 3.01 or 3.02; the Participant's
attainment of age 65 in the case of a benefit payable under Section 3.03 or
3.04, unless the Participant elects an earlier commencement date permitted under
such sections; or the earliest date on which the Participant would have been
eligible for Retirement in the case of a benefit payable under Section 3.05.

     4.02 Benefit Period.

          (a) The benefits payable under Sections 3.01, 3.02, 3.03 and 3.04
     shall be paid to the Participant (or the Participant's Spouse in the event
     of the Participant's death after payments have commenced to the
     Participant) for a period ending on the earliest of the following:

               (i) the date on which a total of 120 monthly payments have been
          paid to the Participant or his Spouse;

               (ii) the date of death of the Participant, if the Participant has
          no surviving Spouse; or

               (iii) the date of death of the Participant's surviving Spouse.

          (b) The benefits payable under Section 3.05 shall be paid to the
     Participant's surviving Spouse for a period ending on the earlier of the
     following:

                                        5

<PAGE>

          (i) the date on which 120 monthly payments have been paid to the
     Participant's surviving Spouse; or

          (ii) the date of death of the Participant's surviving Spouse.

     4.03 Lump-Sum Payment. In the sole discretion of the Committee, a benefit
payable in accordance with Article III may be paid to the Participant or his
surviving Spouse in a single lump sum payment which is the Actuarial Equivalent
of the benefit to which the Participant or his surviving Spouse is entitled.

     4.04 Withholding: Payroll Taxes. To the extent required by the law in
effect at the time payments. of benefits are made, the Company shall withhold
from such payments any federal or state taxes or other amounts required by law
to be withheld.

                                   ARTICLE V
                                   ---------
                                 Administration
                                 --------------

     5.01 Committee. The Board of Directors of the Company shall appoint a
Committee of one or more members to administer and interpret the Plan. Members
of the Committee shall be selected by the Board in its sole discretion and any
member of the Committee may be removed by the Board at any time, with or without
cause. A Committee member may also be a Participant under the Plan, but no
Committee member may be involved with any matter relating to his own benefits
under the Plan or any other financial interest he may have under the Plan. The
Committee shall have the authority to adopt, amend, interpret and enforce rules
and regulations for the operation and administration of the Plan and decide or
resolve any and all questions relating to the Plan.

     5.02 Agents. In the administration of the Plan, the Committee may from time
to time, employ agents and delegate to them such administrative duties as it
sees fit and consult with counsel who may also be counsel to the Company.

     5.03 Binding Effect. Any decision or action of the Committee relating to
the Plan shall be final, conclusive and binding upon all Participants, their
Spouses and any other person having any interest in the Plan.

     5.04 Claims Procedure.

          (a) If a Participant or a surviving Spouse files a claim for benefits
     under the Plan and such claim is wholly or partially denied, notice of the
     decision denying such claim shall be furnished to the claimant within 60
     days of the receipt of such claim by the Committee. The notice provided
     shall be in writing and state the specific reasons for the denial,
     including specific references to the Plan document where relevant and
     provide a description of any additional material or information necessary
     for the claimant to perfect his claim, and an explanation of the Plan's
     review procedure.

          (b) A claimant or his duly authorized representative shall have the
     right to request a review of the decision of the Committee by delivering
     written notice to the Board of Directors of the Company within 30 days
     after the claimant receives notice of

                                        6

<PAGE>

     the Committee's decision. The claimant or his duly authorized
     representative shall also have the right to review pertinent documents and
     to submit issues and comments in writing within 30 days of receipt by the
     claimant of the Committee's notice denying his claim. Requests for review
     shall be considered by the Board of Directors of the Company, who shall
     render their decision within 90 days of the date the request for review is
     filed with it. The Board shall deliver its decision in writing to the
     claimant providing the specific reasons for the decision.

                                   ARTICLE VI
                                   ----------
                      Amendment and Termination of the Plan
                      -------------------------------------

     6.01 Amendment. The Board of Directors of the Company may at any time, and
from time to time, amend the Plan in whole or in part, provided, however, that
no amendment shall be effective to decrease any benefit accrued under the Plan
as of the later of the effective date or date of adoption of such amendment.

     6.02 Termination. The Board of Directors of the Company may, at any time,
in its sole discretion, terminate the Plan, provided, however, no such
termination shall be effective to decrease any benefit accrued under the Plan as
of the date of such termination. In the event of any termination of the Plan,
the Participant or his surviving Spouse shall be entitled to a lump sum payment
equal to the Actuarial Equivalent of the Normal Retirement Benefit payable
pursuant to Section 3.01.

                                   ARTICLE VII
                                   -----------
                                  Miscellaneous
                                  -------------

     7.01 ERISA. The Plan will be maintained by the Company primarily for the
purpose of providing deferred compensation for a select group of management or
highly compensated employees and, therefore, is intended to be exempt from Parts
2, 3 and 4 of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"). It is further intended that this Plan will not cause the interest of
a Participant in the Plan to be includable in his (or his surviving Spouse's)
gross income prior to actual receipt of Plan benefits for purposes of the
Internal Revenue Code of 1986, as amended. If the Plan is held to be subject to
Parts 2, 3 or 4 of ERISA or to create current taxation of Plan Participants
under the Code, by a federal court, and appeals from that holding are no longer
timely or have been exhausted, this Plan shall terminate.

     7.02 Unsecured Creditor. Participants and their surviving Spouses, heirs,
successors and assigns shall have no legal or equitable rights, interests or
claims in any property or assets of the Company. The assets of the Company shall
not be held under any trust for the benefit of Participants, their surviving
Spouses, heirs, successors or assigns or held in any way as collateral for the
fulfilling of the obligations of the Company under this Plan. Any and all of the
Company's assets shall be and remain, the general, unpledged, unrestricted
assets of the Company. The Company's obligation under the Plan shall be merely
that of an unfunded and unsecured promise of the Company to pay money in the
future.

     7.03 Obligation to Employer. If a Participant becomes entitled to a
distribution of a benefit under the Plan, and if at such time the Participant
has outstanding any debt, obligation, or

                                        7

<PAGE>

other liability representing an amount owing to the Company, or any direct or
indirect parent, subsidiary or affiliate of the Company, then the Company may
offset such amount owing against the amount of the benefit otherwise payable
under the Plan to the Participant. Such determination shall be made by the
Committee.

     7.04 Non-Competition. Notwithstanding anything contained in this Plan to
the contrary, the Company shall not be obligated to make any payments under this
Plan to the Participant or his surviving Spouse after the date on which (a) the
Participant shall engage in or take part in any activity, whether as an
employer, proprietor, partner, stockholder (other than the holder of less than
5% of the stock of a corporation the securities of which are traded on a
national securities exchange or in an over-the-counter market), director,
officer or otherwise, in competition with any business conducted by the Company
or a Related Entity while the Participant was employed by the Company or (b) the
Participant solicits, in competition with the Company or any Related Entity, any
person who is a customer of any business conducted by the Company or a Related
Entity while the Participant is employed by the Company or the Participant
divulges any trade secrets, customer lists or other confidential business
information of the Company or a Related Entity.

     7.05 Non-Assignability. Neither a Participant nor any other person shall
have any right to sell, assign, transfer, pledge, mortgage or otherwise
encumber, transfer, hypothecate or convey in advance of actual receipt the
benefit payable under the Plan, or any part thereof, which are expressly
declared to be unassignable and nontransferable. No part of the benefit shall,
prior to actual payment, be subject to seizure or sequestration for the payment
of any debt, judgments, alimony, or separate maintenance owed by the Participant
or any other person, nor be transferable by operation of law in the event of a
Participant' s or any other person's bankruptcy or insolvency.

     7.06 Not a Contract of Employment. The terms and conditions of the Plan
shall not be deemed to constitute a contract of employment between the Company
and the Participant, and the Participant or his surviving Spouse shall not have
any rights against the Company except as may be otherwise specifically provided
herein. Moreover, nothing in the Plan shall be deemed to give a Participant the
right to be retained in the employ of the Company or to limit in any way the
right of the Company to discipline or discharge the Participant at any time.

     7.07 Cooperation. A Participant will cooperate with the Company by
furnishing any and all information requested by the Company, by taking such
physical examinations as the Company may request and by taking such other action
as may be requested by the Company.

     7.08 Terms. Whenever any words are used herein in the masculine, they shall
be construed as though they were used in the feminine in all cases where they
would so apply; and whenever any words are used herein in the singular or in the
plural, they shall be construed as though they were used in the plural or the
singular, as the case may be, in all cases where they would so apply.

     7.09 Captions. The captions of the Articles and Sections of the Plan are
for convenience only and shall not control or affect the meaning or construction
of any of its provisions.

                                       8

<PAGE>

     7.10 Governing Law. The provisions of the Plan shall be construed and
interpreted according to the laws of the State of Delaware.

     7.11 Validity. In case any provision of the Plan shall be held illegal or
invalid for any reason, such illegality or invalidity shall not affect the
remaining parts, but the Plan shall be construed and enforced as if such illegal
or invalid provision had never been a part hereof.

     7.12 Notice. Any notice or filing required or permitted to be given to the
Committee under the Plan shall be sufficient if in writing and hand delivered,
or sent by Registered or Certified Mail, to the principal office of the Company.
Such notice shall be deemed given as of the date of delivery or, if delivery is
made by mail, as of the date shown on the postmark or the. receipt for
registration or certification.

     7.13 Successors. The provisions of the Plan shall be binding and inure to
the benefit of the Company and its successors and assigns. The term "successors"
as used herein shall include any corporate or other business entity which shall,
by merger, consolidation, purchase or otherwise acquire all or substantially all
of the business and assets of the Company and successors of any such corporation
or other business entity.

                                  ARTICLE VIII
                                Change in Control

     8.01 (a) Change in Control Benefits. If there is a Change in Control (as
defined in Section 8.01(b) (i)) and the Participant's employment by the Company
is terminated for reasons other than Cause (as defined in Section 8.01(b) (ii)),
disability, death or voluntary termination by the Participant, then the
Participant shall be entitled to a Normal Retirement Benefit even though the
Participant may not have yet completed 10 Years of Service and the Participant's
termination shall be deemed to have occurred after the Participant's 65th
birthday and the Participant shall be credited with two additional Years of
Service for purposes of determining the amount of the Participant's Normal
Retirement Benefit under Section 3.01 and the date on which such benefit shall
begin to be paid to the Participant pursuant to Section 4.01.

     (b) Definitions.

          (i) "Change in Control" means the occurrence of any one of the
     following events:

               (A) there is an acquisition by any individual, entity or group
          (within the meaning of Section 13 (d) (3) or 14 (d) (2) of the
          Exchange Act) of beneficial ownership (within the meaning of Rule
          13d-3 promulgated under the Exchange Act) of 20% or more of the
          combined voting power of the then outstanding voting securities of the
          Company entitled to vote generally in the election of directors;

               (B) during any period of two consecutive years, individuals who
          at the beginning of such period constitute the Board of Directors of
          the Company and any new director (other than a director designated by
          a person who has entered into an agreement with the Company to effect
          a

                                       9

<PAGE>

          transaction described in subparagraphs (A) or (C) of this definition)
          whose election by the Board of Directors of the Company or nomination
          for election by the Company's stockholders was approved by a vote of
          at least two-thirds (2/3) of the directors then still in office who
          either were directors at the beginning of the period or whose election
          or nomination for election was previously so approved, cease for any
          reason to constitute a majority thereof; or

               (C) the stockholders of the Company approve (I) a merger or
          consolidation of the Company with any other entity, other than a
          merger or consolidation which would result in the voting securities of
          the Company outstanding immediately prior thereto continuing to
          represent (either by remaining outstanding or through the surviving
          entity) at least 50% of the combined voting power of the voting
          securities of the Company or such surviving entity outstanding
          immediately after such merger or consolidation, or (II) a plan of
          complete liquidation of the Company or an agreement for the sale or
          disposition of Directors called and held for such purpose (after
          reason able notice to Participant and an opportunity for Participant,
          together with counsel, to be heard before the Board of Directors),
          finding that in the good faith opinion of the Board of Directors,
          Participant was guilty of conduct set forth above in clauses (A) or
          (B) of the first sentence of this definition and specifying the
          particulars thereof in detail.

                                             Material Sciences Corporation

                                             By:
                                                --------------------------------
                                                    Chairman, President and
                                                    Chief Executive Officer

                                       10

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