Document:

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                                                                    Exhibit 10.5
                  INTELLECTUAL PROPERTY TRANSFER AGREEMENT

      AGREEMENT, made as of the 27th day of December 1999, by and between UCAR
Carbon Technology Corporation, a Delaware corporation having offices at 3102
West End Avenue, Nashville, Tennessee, 37203 ("Transferor"), and UCAR
Graph-Tech Inc., a Delaware corporation having offices at 11709 Madison Avenue,
Lakewood, Ohio, 44107 ("Transferee").

      WHEREAS, Transferee is a wholly owned subsidiary of Transferor; and

      WHEREAS, Transferee wishes to acquire, and Transferor is willing to
transfer, assign and convey, or cause to be transferred, assigned and conveyed,
all of its right, title, and interest in the Assets (as defined herein); and

      WHEREAS, Transferor intends to transfer the Assets to Transferee as a
contribution to capital and Transferee intends to assume the liabilities
associated with the Assets in accord with Sections 351(a) and 357(a) of the
Internal Revenue Code of 1986;

      NOW, THEREFORE, INTENDING TO BE LEGALLY BOUND, and for and in
consideration of the premises and the mutual covenants and agreements
hereinafter set forth, the parties agree as follows:

ARTICLE I     DEFINITIONS

     1.01     Assets. "Assets" shall mean the following:

     (i)      All United States and foreign patents and patent applications
              listed in Schedule B attached hereto, and all continuations,
              continuations-in-part, divisions, reissues and other patents
              which may be issued by any country based in whole or in part on
              the patents or applications listed in Schedule B attached hereto
              (the "Patents");

     (ii)     All technology contracts (including patent licenses) listed in
              Schedule C attached hereto (the "Technology Contracts");
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     (iii)    All technical information, know-how and trade secrets, including
              but not limited to all notebooks, records, reports, data,
              documents, drawings, specifications, manuals, memoranda and
              computer programs, used primarily in the Business (the
              "Technology");

     (iv)     All trademarks, trade names and service marks, registrations and
              applications therefor, and trademark license agreements listed on
              Schedule D attached hereto (the "Trademarks");

     (v)      All copyrights, registrations and applications therefor, and
              copyright licenses used exclusively in Business (the
              "Copyrights");

     (vi)     All improvements made on any invention covered by the Patents or
              made on the Technology and all other technological inventions and
              developments (whether or not patented) used or useful primarily
              in the Business (the "Improvements"); and

     (vii)    All claims, suits and proceedings (including those related to
              infringement of property rights) in favor of Transferor to the
              extent, but only to the extent, that they relate primarily to
              the other Assets, if any (the "Claims").

     1.02     Business. "Business" shall mean the natural, acid-treated or
flexible graphite business currently conducted by UCAR International Inc.
("UCAR") and its subsidiaries.

     1.03     Transfer Date. "Transfer Date" shall mean December 28, 1999.

     1.04     Third Party. "Third Party" shall mean any and all parties other
than Transferor or Transferee and their respective subsidiaries.

ARTICLE II    TRANSFER OF ASSETS

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     2.01     Transfer of Assets. Effective as of the Transfer Date, Transferor
hereby conveys, transfers, assigns and delivers to Transferee, and Transferee
hereby acquires and accepts from Transferor, all of Transferor's right, title
and interest in and to the Assets.

     2.02     Capitalization. Transferor holds One Hundred (100) shares of
Transferee's voting common stock, $0.01 par value (the "Stock"), which shares
are fully paid and non-assessable and which constitute all the issued and
outstanding shares of Transferee's capital stock.  Transferor's transfer of the
Assets shall be an additional contribution to capital of Transferee.

     2.03     Valuation.     The parties agree that, for book and financial
reporting purposes, the value of the Assets transferred to Transferee hereunder
shall be deemed to be the sum, as of the date of the Transfer Date, of the
aggregate net book value of the Assets.

     2.04     Liabilities and Indemnification.

              (a)    Upon, from and after the Transfer Date, Transferee shall,
without any further responsibility or liability of, or recourse to, UCAR or any
direct or indirect subsidiary of UCAR (other than Transferee and its
subsidiaries) or any of their directors, shareholders, officers, employees,
agents, consultants, representatives, successors, transferees or assignees,
absolutely and irrevocably assume and be solely liable and responsible for any
and all claims, liabilities, obligations, losses, costs, expenses, litigation,
proceedings, fines, taxes, levies, imposts, duties, deficiencies, assessments,
charges, penalties, allegations, demands, damages (including but not limited to
actual, punitive or consequential, foreseen or unforeseen, known or unknown),
settlements or judgements of any kind or nature whatsoever that are or are
alleged to be related to, arising from or associated with the ownership, use or
possession of the Assets before or after the Transfer Date, regardless of when
they arose or arise, or whether the facts on which they are based occurred
prior to or subsequent to the Transfer Date, and regardless of

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where or against whom asserted or determined or whether asserted or determined
prior or subsequent to the Transfer Date and regardless of whether or not known
or unknown, fixed or contingent, asserted or unasserted, or whether arising
from or alleged to arise from negligence, recklessness, violation of law,
representation or misrepresentation by UCAR or its subsidiaries or their
respective directors, officers, employees or agents, including without
limitation any and all those with respect to infringement of the intellectual
property rights of others, claims arising out of contracts, or any other
alleged or actual breach or violation of any obligation or other requirement
(collectively, the "Business Liabilities").  Transferee shall irrevocably
indemnify and hold harmless UCAR, the direct or indirect subsidiaries of UCAR
(other than Transferee and its subsidiaries) and their respective directors,
shareholders, officers, employees, agents, consultants, representatives,
successors, transferees and assigns from and against any and all Business
Liabilities (including without limitation reasonable fees and expenses of
counsel) of whatever kind and nature.

              (b)    Each party shall indemnify and hold harmless the other
party and its successors and assigns from and against any and all damages,
claims, losses, liabilities and expenses (excluding legal, accounting and
similar expenses), which arise out of any violation of this Agreement by such
party.

              (c)    The party entitled to indemnification hereunder (the
"Indemnitee") shall promptly notify the party liable for such indemnification
(the "Indemnitor") in writing upon obtaining knowledge of any damage, claim,
loss, liability or expense (a "Claim") which the Indemnitee has determined has
given or could give rise to a claim under Sections 2.04(a) or 2.04(b) (such
written notice being hereinafter referred to as a "Notice of Claim").  A Notice
of Claim shall specify in reasonable detail the nature and any particulars of
any such Claim.  The

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Indemnitor shall satisfy its obligations under Sections 2.04(a) or 2.04(b), as
the case may be, within thirty (30) days of its receipt of a Notice of Claim;
provided, however, that so long as the Indemnitor is in good faith defending a
Claim pursuant to paragraph (d) below, its obligation to indemnify the
Indemnitee with respect thereto shall be suspended.

              (d)    With respect to any third party claim, demand, suit or
action which is the subject of a Notice of Claim, the Indemnitor shall, in good
faith and at its own expense, defend, contest, or otherwise protect against any
such claim, demand, suit or action with legal counsel of its own selection. The
Indemnitee shall have the right, but not the obligation, to participate, at its
own expense, in the defense thereof through counsel of its own choice and shall
have the right, but not the obligation, to assert any and all crossclaims or
counterclaims it may have.  So long as the Indemnitor is defending in good
faith any such third party claim, demand, suit or action, the Indemnitee shall
at all times cooperate in all reasonable ways with, make its relevant files and
records available for inspection and copying by, and make its employees
available or otherwise render reasonable assistance to, the Indemnitor.  In the
event that the Indemnitor fails to timely defend, contest or otherwise protect
against any such third party claim, demand, suit or action, the Indemnitee
shall have the right, but not the obligation, to defend, contest, assert
crossclaims or counterclaims, or otherwise protect against, the same and may
make any compromise or settlement thereof and recover and be indemnified for
the entire cost thereof from the Indemnitor, including, without limitation,
legal expenses, disbursements, and all amounts paid as a result of such third
party claim, demand, suit or action or any compromise or settlement thereof.

              (e)    The Indemnitor shall not settle any such action, claim,
suit or demand without the written consent of the Indemnitee. Consent shall not
be unreasonably withheld or

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delayed, except that a party may withhold or delay consent if the settlement
does not provide for a complete release of the Indemnitee without any
requirement for it to make payments or incur additional liabilities,
obligations or burdens.  In the event the Indemnitee unreasonably withholds or
delays consent to a settlement, the Indemnitee will thereupon assume the
defense of such action, claim, suit or demand for its own account and the
Indemnitor shall be released from all liability with respect to such action,
claim, suit or demand except that the Indemnitor shall remain liable with
respect thereto to the extent (but only to the extent) of the obligations,
liabilities or burdens it would have had under the settlement as to which the
Indemnitee unreasonably withheld or delayed consent.

     2.05     Transfer Deliveries.   On the Transfer Date or promptly
thereafter, Transferor and Transferee shall deliver or cause to be delivered to
one another:

              (a)     Executed and acknowledged Assignments of the Patents.

              (b)     An executed and acknowledged Assignment and Assumption of
                      the Technology Contracts.

              (c)     An executed and acknowledged Assignment of the Technology.

              (d)     Executed and acknowledged Assignments or Assignment and
                      Assumptions, as appropriate, of the Trademarks.

              (e)     Executed and acknowledged Assignments or Assignment and
                      Assumptions, as appropriate, of the Copyrights.

              (f)     Executed and acknowledged Assignments of the Improvements
                      and the Claims.

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In addition, on the Transfer Date, each party shall deliver, or cause to be
delivered, to the other party one certified copy of the resolutions of such
party's Board of Directors evidencing the authorizations for this transaction.

     2.06     Taxes and Other Expenses.

              (a)    Transferee is responsible for any taxes (including,
without limitation, income, payroll, real and personal property, gross
receipts, sales, use, franchise, and stamp taxes) imposed by any Federal, state
or local government or other tax authority in the U.S., or by any foreign
government or any subdivision or taxing authority thereof, and other fees or
charges (including, without limitation, documentation, licenses and
registration fees), together with any interest or penalties thereon ("Taxes and
Other Charges"), which are attributable to use, possession or ownership of the
Assets.  If Transferor shall have paid any Taxes or Other Charges for which
Transferee is responsible as aforesaid, appropriate adjustment will be made as
promptly as practicable after the Transfer Date.

              (b)    Transferee shall be liable for all sales, use, transfer,
conveyance, bulk transfer, business and occupation, value added or gross income
taxes, or other taxes, duties, excises or governmental charges (the foregoing
are hereinafter referred to as "Transactional Taxes") imposed by any taxing
jurisdiction with respect to the transfer or assignment of the Assets or
otherwise on account of this Agreement or the transactions contemplated herein,
except as otherwise provided in any tax allocation or sharing agreement between
UCAR and Transferee or in Section 2.04 and except that, notwithstanding
anything contained in such tax allocation or sharing agreement or in Section
2.04 to the contrary, Transferee shall not be responsible for any tax on or
measured by net income of UCAR or its subsidiaries (other than Transferee and
its subsidiaries) attributable solely to (i) the contribution of assets to, or
the assumption of liabilities

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by, Transferee by or from Transferor, (ii) the transfer of capital stock of
Transferee by UCAR or its subsidiaries (other than Transferee and its
subsidiaries) or (iii) the restructuring of or other transactions involving
UCAR or its subsidiaries (other than Transferee and its subsidiaries).
Transferee shall provide Transferor with appropriate exemption certificates or
direct pay certificates where possible, or shall promptly pay and discharge any
such Transactional Taxes for which Transferee is responsible.  The foregoing
notwithstanding, in the event UCAR or its subsidiaries (other than Transferee
and its subsidiaries) shall be required to pay any Transactional Taxes for
which Transferee is responsible, Transferee shall promptly reimburse Transferor
therefor.  In the event any taxing jurisdiction subsequently determines that
any additional Transactional Taxes for which Transferee is responsible
(including interest or penalties thereon) shall be due, Transferee shall
indemnify and hold UCAR or its subsidiaries (other than Transferee and its
subsidiaries)  harmless therefrom pursuant to Section 2.04.

              (c)    In addition to any obligations of the parties under such
tax allocation or sharing agreement, Transferor and Transferee shall cooperate
regarding the filing of any tax returns (including Federal, state, local and
foreign income and other tax returns) that cover a period which includes the
Transfer Date.

              (d)    Transferee shall be liable for all recording fees,
notarial fees, and other fees and costs arising out of the transfer or
assignment of the Assets, or otherwise on account of this Agreement or the
transactions contemplated herein.  Transferee shall promptly pay and discharge
the costs of such items and shall promptly reimburse Transferor for any amounts
Transferor may have expended on such items.

ARTICLE III OBLIGATION AFTER TRANSFER

     3.01     Further Transfers and Assurances.   From time to time after the
Transfer Date, each party shall execute, acknowledge and deliver any further
assignments, conveyances and

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other assurances, documents and instruments of transfer, and take any other
action consistent with this Agreement, as may be reasonably required to assign,
transfer, convey, record and confirm the transfer of assets, the assumption of
liabilities and the consummation of the other transactions contemplated hereby.

     3.02     Non-assignability.  To the extent that any Asset or any claim,
right or benefit arising thereunder or resulting therefrom (collectively the
"Interests") is not capable of being assigned, transferred or conveyed without
the approval, consent or waiver of the issuer thereof or the other party
thereto or any third person (including a government or governmental unit), or
if such assignment, transfer or conveyance or attempted assignment, transfer or
conveyance would constitute a breach thereof or a violation of any law, decree,
order, regulation or other governmental edict or is not practicable because it
relates to matters involving the Assets together with other assets of
Transferor not being transferred to Transferee, this Agreement shall not
constitute an assignment, transfer or conveyance thereof, or an attempted
assignment, transfer or conveyance thereof, until such obstacles have been
removed. Anything in this Agreement to the contrary notwithstanding, Transferor
is not obligated to assign, transfer or convey to Transferee any of its rights
in and to any of the Interests without first obtaining all necessary approvals,
consents or waivers.  Transferor shall use all reasonable efforts, and
Transferee shall cooperate with Transferor, to obtain all necessary approvals,
consents or waivers, or to resolve any impracticabilities of transfer necessary
to convey to Transferee each such Interest as soon as practicable; provided,
however, that neither Transferor, nor Transferee, shall be obligated to pay any
consideration therefor (except for filing fees and other ordinary
administrative charges which shall be paid by Transferee) to the third person
from whom such approval, consent or waiver is requested. To the extent any of
the approvals, consents or waivers

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have not been obtained, or until the impracticabilities of transfer are
resolved, Transferor shall, during the remaining term of such Interest, use all
reasonable efforts, with reasonable costs of Transferor related thereto to be
promptly reimbursed by Transferee, to: (i) obtain the consent of any such third
person; (ii) cooperate with Transferee in any reasonable and lawful arrangement
designed to provide the benefits of such Interest to Transferee so long as
Transferee fully cooperates with Transferor in such arrangements;  and (iii)
enforce, at the request of Transferee and at the expense and for the account of
Transferee, any rights of Transferor arising from such Interest against the
issuer thereof or the other party or parties thereto (including the right to
elect to terminate any such Interest in accordance with the terms thereof upon
the advice of Transferee).

     3.03     Records Retained by Transferor.   The parties agree that,
except as may otherwise be provided in this Agreement, Transferor shall
transfer and deliver to Transferee after the Transfer Date all data, records
and other information which pertain exclusively to the Assets (with the
exception of (i) those created for this transaction and (ii) those required to
enable UCAR and its subsidiaries (other than Transferee and its subsidiaries)
to perform their obligations under other agreements with Transferee and its
subsidiaries, which shall be so transferred and delivered after such
obligations terminated), including, without limitation, tax records and
personnel records (all of the foregoing being hereinafter called "Business
Records").  To the extent that the original copies of any such Business Records
also contain information relating to UCAR or any of its subsidiaries (other
than Transferee and its subsidiaries), Transferor may transfer and deliver to
Transferee copies deleting such information but shall not destroy the original
Business Records (except in accordance with normal records retention policies)
or otherwise take action to make such original Business Records unavailable to

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Transferee.  Any Business Records which Transferor requires in connection with
pending or threatened litigation or tax examination or audit, or which are
otherwise subject to Hold Orders as provided in Transferor's records retention
policy manual, may be retained by Transferor and copies thereof delivered to
Transferee.

     3.04     Access to Records by Transferor.   In addition to any obligations
of the parties under any such other agreements, following the Transfer Date,
Transferee shall give to Transferor and its authorized representatives full
access, during regular business hours, to the records described in Section 3.05
and to any and all of its premises, properties, contracts, books, records and
data related to the Assets and will cause its officers, directors and employees
to furnish to Transferor, without compensation therefor, any and all data and
information pertaining thereto or to the Assets or the use, ownership or
disposition thereof that Transferor shall from time to time request, including
requests for information, to enable UCAR and its subsidiaries (other than
Transferee and its subsidiaries) to file Federal, state, local or foreign
income or other tax returns, comply with orders or agreements, complete
financial statement and internal control reviews and audits, or pursue or
defend any pending or threatened litigation or tax examination or audit.
Notwithstanding the foregoing, Transferee is not required to give enable UCAR
and its subsidiaries (other than Transferee and its subsidiaries) access to
such records, premises, properties, contracts, books, data or information
listed above, to the extent that it relates to events occurring after UCAR
ceases to directly or indirectly own or hold a majority of the then outstanding
common stock of Transferee or its successors.

     3.05     Preservation of Records.   Transferee agrees that it shall
preserve and keep the records of Transferor delivered to it hereunder for the
period from and after the Transfer Date prescribed by the Transferor's record
retention policy in effect at the Transfer Date, or by any

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government agency, or for so long as may be requested in connection with any
matter mentioned in Section 3.04, whichever is longer.  In the event Transferee
wishes to destroy such records after that time, Transferee shall first give
ninety (90) days prior written notice to Transferor and Transferor shall have
the right at its option and expense, upon prior written notice given to
Transferee within said ninety (90) day period, to take possession of said
records within one hundred and eighty (180) days after the date of Transferor's
notice to Transferee hereunder.

     3.06     Confidentiality.   Except as otherwise permitted by such other
agreements, each party hereto agrees to (and agrees to cause its subsidiaries
and affiliates to) refrain from using in any manner, and use its best efforts
(consistent with past practices of Transferor) to keep confidential, any and
all information and data concerning the business and affairs of the other party
or its subsidiaries or affiliates which it has received or receives hereunder,
except to the extent that such party or its subsidiaries or affiliates can
demonstrate that the information or data (a) is generally available to the
public as evidenced by prior written publication through no act or failure to
act by it or its subsidiaries or affiliates, (b) is developed independently of
such information by the party or its subsidiaries or affiliates as evidenced by
written documentation, or (c) is subsequently disclosed to it or its
subsidiaries or affiliates on a non-confidential basis by a Third Party not
having a confidential relationship with the other party or its subsidiaries or
affiliates with respect to such information or data. Notwithstanding the
foregoing, each of the parties hereto or its subsidiaries or affiliates shall
be free to disclose any such information or data to the extent, but only to the
extent, (a) required by applicable law, (b) necessary or appropriate in
connection with tax filing and reporting, financial statement and internal
control reviewing, public company reporting and credit facility reporting, (c)
necessary or appropriate in connection with debt or equity financing or
business combination activities or (d) during the

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course of or in connection with any litigation, governmental investigation,
arbitration or other proceeding based upon or in connection with (x) the
subject matter of this Agreement or (y) the exercise of rights or enforcement
of obligations involving third parties.  Prior to any disclosure of trade
secrets pursuant to the preceding sentence, the disclosing party shall be
required to give reasonable prior notice to the other party to this Agreement
of such intended disclosure and, if requested by such party, to use its best
efforts to obtain a protective order or similar protection for such other
party.  For purposes of this Section 3.06 only, references to "party" in the
context of Transferor shall mean UCAR and neither Transferee nor its
subsidiaries shall be deemed to be subsidiaries or affiliates of UCAR.

     3.07     Recording of Documents.  Transferee shall be responsible, at
Transferee's expense, for the filing or recording of the instruments or
documents delivered by Transferor hereunder, and for the preparation and
recording of such additional instruments or documents as may be necessary or
appropriate to perfect Transferee's title, right or interest in or to the
Assets.

ARTICLE IV MISCELLANEOUS

     4.01     Binding Effect;  Assignment. This Agreement shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and permitted assigns.  Nothing herein shall create or be deemed to
create any third party beneficiary rights in any person or entity not a party
to this Agreement, other than an Indemnitee and UCAR and its subsidiaries as
expressly provided herein.  No assignment of this Agreement, or of any rights
or obligations hereunder, may be made by either party hereto without the prior
written consent of the other party hereto; provided, however, that no such
consent shall be required with respect to an assignment in connection with: (i)
an internal restructuring or realignment (including liquidation and
dissolution) of businesses or subsidiaries of UCAR or Transferee; (ii) a pledge
of assets as collateral security for a bona fide debt financing or credit
facility (and foreclosure thereon); or

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(iii) a sale or other transfer of all or a majority of the assets or business
of UCAR or Transferee.  Any attempted assignment without the required consent
shall be void.

     4.02     Schedules.      All Schedules attached hereto, and the
instruments and documents to be delivered hereunder ("Items"), are incorporated
herein and expressly made a part of this Agreement as fully as though
completely set forth herein, and all references to this Agreement herein or in
any of such Items shall be deemed to refer to and include all of said Items.

     4.03     Counterparts.   This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.  Each counterpart may consist of a
number of copies hereof each signed by less than all, but together signed by
all, of the parties hereto.  In pleading or proving any provision of this
Agreement, it shall not be necessary to produce more than one such counterpart.

     4.04     Waiver.         The failure of any party at any time or times to
enforce or require performance of any provision hereof shall in no way operate
as a waiver or affect the right of such party at a later time to enforce the
same.  No waiver by any party of any condition or the breach of any term,
covenant or warranty contained in this Agreement, whether by conduct or
otherwise, in any one or more instance, shall be deemed to be or construed as a
further or continuing waiver of any such condition or breach, or a waiver of
any other condition or of any breach of any other term, covenant or warranty
contained in this Agreement.

     4.05     Severability.   If any provision of this Agreement shall be held
to be invalid or unenforceable in any jurisdiction for any reason, that
provision shall be reformed to the maximum extent permitted to preserve the
parties' original intent, failing which, it shall be severed from this
Agreement with the balance of the Agreement continuing in full force and
effect; provided, however, that Transferor shall have no obligation to
consummate the

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transactions contemplated hereby if the provision being reformed or severed
affects the consideration for the Assets as provided in Article 2 hereof.  Such
occurrence shall not have the effect of rendering the provision in question
invalid or unenforceable in any other jurisdiction or in any other case or
circumstance or of rendering invalid or unenforceable any other provisions
contained herein to the extent that such other provisions are not themselves
actually in conflict with any applicable law.

     4.06     Governing Law and Forum.   This Agreement shall be governed by
and construed in all respects under the laws of the State of Delaware, without
reference to its conflicts of laws rules or principles.  Any action to enforce,
or which arises out of or in any way relates to, any of the provisions of this
Agreement shall be brought and prosecuted in such court or courts located
within the State of Delaware as provided by law;  and the parties consent to
the jurisdiction of said court or courts located within the State of Delaware,
and to service of process by registered mail, return receipt requested, or by
any other manner provided by Delaware law.

     4.07     Entire Agreement.     This Agreement and all the Schedules
attached hereto, and all other instruments and documents to be delivered
hereunder, constitute the entire understanding of the parties hereto concerning
the subject matter hereof, and cancels and supersedes all previous agreements
and understandings, oral or written, between the parties with respect to the
subject matter hereof.  Transferee disclaims reliance upon any representations,
warranties or guarantees, either express or implied, by Transferor, its
employees or agents.  No modification of this Agreement or waiver of any terms,
conditions or rights hereunder will be binding upon any party unless signed in
writing by an authorized representative of such party.

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     4.08     Effect of Headings.   The subject headings of the Sections of
this Agreement are included for purposes of convenience only, and shall not
affect the construction or interpretation of any of its provisions.

     4.09     Notices.    All notices, requests, demands, and other
communications under this Agreement shall be in writing and shall be deemed to
have been duly given on the date of service if served personally on the party
to whom notice is given, or on the fifth day after mailing if mailed to the
party to whom notice is to be given by first class mail, registered or
certified, postage pre-paid, properly addressed as first set forth above.  Any
party may change its address for purposes of this paragraph by giving the other
party written notice of the new address in the manner set forth above.

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      IN WITNESS WHEREOF, the parties have duly executed this Agreements as of
the date and year first above written.

                              UCAR CARBON TECHNOLOGY CORPORATION
                              (Transferor)

                              By: /s/
                                 ----------------------------

                              Title:
                                    -------------------------

                              UCAR GRAPH-TECH INC.
                              (Transferee)

                              By: /s/
                                  ---------------------------

                              Title:
                                    -------------------------

                                       17<PAGE>   1
                                                                    Exhibit 10.6

                            COLLABORATION AGREEMENT

                                    between

                           BALLARD POWER SYSTEMS INC.

                                      and

                            UCAR CARBON COMPANY INC.
<PAGE>   2
                            COLLABORATION AGREEMENT

THIS AGREEMENT is made May 3, 1999

BETWEEN:

           BALLARD POWER SYSTEMS INC., a Canadian corporation having an office
           at 9000 Glenlyon Parkway, Burnaby, British Columbia, Canada, V5J 5J9

           ("BPS")

AND:

           UCAR CARBON COMPANY INC., a Delaware corporation having an office at
           3102 West End Avenue, Suite 1100, Nashville, Tennessee 37203, USA

           ("UCAR CARBON")

WHEREAS:

(A)   BPS has developed, is in the possession of and is the beneficial owner
of, substantial and valuable expertise, know-how and certain intellectual
property rights relating to the field of PEM Fuel Cells and the design,
manufacture and marketing of PEM Fuel Cells and components therefor for the
generation of electrical power for a variety of applications;

(B)   BPS wishes to enhance its PEM Fuel Cell technology through the
development of improved fuel cell components;

(C)   UCAR CARBON has developed, is in the possession of and is the
beneficial owner of, substantial and valuable expertise, know-how and certain
intellectual property rights relating to the field of flexible graphite and
treated natural graphite and sells such materials and articles made therefrom
having mechanical, physical, chemical and electrical properties suitable for a
wide variety of industrial uses;

(D)   BPS and UCAR CARBON wish to co-operate in the research and development
of the Target Products for use in PEM Fuel Cells and derivatives thereof and
have entered into this Agreement for the purposes of the Collaboration;

(E)   BPS intends to procure its supply of the Materials from UCAR CARBON for
itself and possibly also for certain of its Affiliates and licensees if the
development of the Target Products pursuant to the collaboration under this
Agreement is successful;

(F)   UCAR and BPS are parties to the Mutual Secrecy Agreement;

NOW THEREFORE this Agreement witnesses that the parties mutually covenant and
agree as follows:
<PAGE>   3
                                     PART 1

                        DEFINITIONS AND INTERPRETATIONS

DEFINITIONS

1.1        In this Agreement, including the recitals, except as otherwise
expressly provided or unless the context otherwise requires,

           AFFILIATE, in relation to a specified Person, means a Person that
           directly or indirectly controls, is under common control with, or is
           controlled by the specified Person, and for the purposes hereof, a
           Person will be deemed to control a corporation if

                   (a)   securities of the corporation to which are attached
                   more than 50% of the votes that may be cast to elect
                   directors of the specified corporation or other rights to
                   elect a majority of the directors are held, other than by
                   way of security only, by or for the benefit of the Person,
                   and

                   (b)   the votes attached to those securities are sufficient,
                   if exercised, to elect a majority of the directors of the
                   corporation,

           ARISING IPR means, collectively, BPS Arising IPR and UCAR Arising
           IPR arising pursuant to the Collaboration,

           BACKGROUND IPR means, collectively, BPS Background IPR and UCAR
           Background IPR,

           BPS ARISING IPR means all IPR arising pursuant to the Collaboration
           concerning any of the following:

                   (a)   PEM Fuel Cells and PEM Fuel Cell components and
                   assemblies, including electrically conductive fuel cell
                   separator plates, the design, composition, manufacturing
                   techniques and methodology respecting any of the foregoing,
                   and applications thereof; and

                   (b)   the use of any of the Materials in electrically
                   conductive fuel cell separator plates and manufacturing
                   techniques and methodology for fabrication of such plates
                   incorporating the Materials,

           BPS BACKGROUND IPR means all IPR concerning any of the following:

                   (a)   PEM Fuel Cells and PEM Fuel Cell components and
                   assemblies, including electrically conductive fuel cell
                   separator plates, the design composition, manufacturing
                   techniques and methodology respecting any of the foregoing,
                   and applications thereof, owned or controlled by BPS before
                   the Effective Date; and

                                       2
<PAGE>   4
                   (b)   the use of any of the Materials, in electrically
                   conductive fuel cell separator plates, owned or controlled
                   by BPS before the Effective Date,

           BUSINESS DAY means a day that is not a Saturday or a Sunday or a
           British Columbia provincial, Canadian federal, a United States
           national or Tennessee state, holiday,

           CHIEF EXECUTIVE OFFICER means, in the case of BPS, BPS's Chief
           Operating Officer and in the case of UCAR CARBON, UCAR CARBON's
           President,

           COLLABORATION means the collaboration between the parties described
           in Section 2.1 and includes the collaborative activities of the
           parties set forth in the SOW which occur from and after the
           Effective Date,

           COLLABORATION PERIOD has the meaning ascribed to it in Section 2.3,

           COMMITTEE has the meaning ascribed to it in Section 2.4,

           CONFIDENTIAL INFORMATION means, in relation to a Person, information
           known or used by such Person in connection with its business and
           technology, including, but not limited to, such Person's
           Intellectual Property, customer information, financial information,
           marketing information, and information as to business opportunities
           and research and development,

           DISPUTE NOTICE has the meaning ascribed to it in Section 6.1,

           EFFECTIVE DATE has the meaning ascribed to it in Section 2.3,

           EVENT OF DEFAULT in relation to a party means an event of default
           arising as a result of a party being subject to one or more of the
           following circumstances:

                   (a)   an order is made or a resolution is passed or a
                   petition is filed by such party for the liquidation,
                   dissolution or winding-up of such party,

                   (b)   such party is in material breach of its obligations
                   under Part 4,

                   (c)   such party commits a material default in observing or
                   performing any other material covenant, agreement or
                   condition of this Agreement on its part to be observed or
                   performed and, where such default is curable, such party
                   does not rectify or cure such default within 30 days after
                   receipt of written notice from the other party to this
                   Agreement specifying such default;

                   (d)   an execution, sequestration or any other process of
                   any court becomes enforceable against such party or any
                   distress or analogous process is levied upon any material
                   part of the property, assets and undertaking of such party
                   and any such process or distress is not stayed or otherwise
                   suspended by a court of competent jurisdiction within 30
                   days and has, or could have, a material adverse effect on
                   the business or condition, financial or otherwise, of such
                   party;

                                       3
<PAGE>   5
                   (e)   such party applies to be put in bankruptcy, takes any
                   action that would permit its creditors to make an
                   application to put such party in bankruptcy, is adjudged or
                   declared bankrupt or makes an assignment for the benefit of
                   creditors, consents to a proposal or similar action under
                   any bankruptcy or insolvency legislation applicable to it,
                   or commences any other proceedings relating to it under any
                   reorganization, arrangement, readjustment of debt,
                   dissolution or liquidation law or statute of any
                   jurisdiction whether now or hereafter in effect, or consents
                   to any such proceeding;

                   (f)   a custodian, liquidator, receiver, receiver and
                   manager, receiver-manager, trustee or any other person with
                   similar powers is appointed for such party or in respect of
                   any material property or assets or material part of the
                   property or assets of such party and not discharged within
                   30 days after its appointment and before any action is taken
                   by it in respect of such property or assets which will
                   materially affect the rights of the parties to this
                   Agreement thereto; or

                   (g)   a final, non-appealable, decision of any judicial,
                   administrative, governmental or other authority or
                   arbitrator is made which enjoins or restrains, or renders
                   illegal or unenforceable, the performance or observance by
                   such party of any material term of this Agreement,

           EXCLUSIVE PERIOD has the meaning ascribed to it in Section 2.9,

           INTELLECTUAL PROPERTY means in relation to a Person, each patent,
           patent application, industrial design, invention, design, trade
           secret, idea, work, methodology, technology, innovation, creation,
           concept, moral right, development drawing, research, analysis,
           know-how, experiment, copyright, data, formula, method, procedure,
           process, system or technique of such Person but does not include
           trademarks or tradenames,

           IPR means Intellectual Property rights,

           MATERIALS means any one or more of treated graphite flakes, expanded
           graphite flakes and flexible graphite (commonly referred to as
           graphite sheet or foil) [text redacted] as well as such materials
           developed by UCAR CARBON before the Effective Date, including, but
           not limited to the materials listed in Schedule B,

           MUTUAL SECRECY AGREEMENT means the secrecy agreement made effective
           May 17, 1996, a copy of which is annexed hereto as Schedule C,

           NOTICE has the meaning ascribed to it in Section 8.4,

           PEM FUEL CELL means a solid polymer fuel cell and includes a direct
           oxidation fuel cell,

           PERSON means an individual, corporation, body corporate, firm,
           limited liability company, partnership, syndicate, joint venture,
           society, association, trust or unincorporated organization or
           trustee or other such legal representative,

                                       4
<PAGE>   6
           PROJECT MANAGER has the meaning ascribed to it in Section 2.7,

           SOW means the Statement of Work annexed hereto as Schedule A,

           SUPPLY AGREEMENT DEADLINE DATE has the meaning ascribed to it in
           Section 5.1,

           TARGET PRODUCT means an electrically conductive fuel cell separator
           plate developed pursuant to the Collaboration utilizing any of the
           Materials,

           UCAR ARISING IPR means all IPR arising pursuant to the Collaboration
           concerning

                   (a)   any of the Materials,

                   (b)   articles made from the Materials, other than
                   electrically conductive fuel cell separator plates,

                   (c)   compositions which include one or more of the
                   Materials for use in applications other than in electrically
                   conductive fuel cell separator plates,

                   (d)   methodology relating to, or relating to the use of,
                   any of the foregoing other than methodology relating to, or
                   relating to the use of any of the foregoing in, electrically
                   conductive fuel cell separator plates,

           but excludes IPR concerning electrically conductive fuel cell
           separator plates as well as everything comprising the BPS Arising
           IPR, and

           UCAR BACKGROUND IPR means all IPR concerning any of the following:

                   (a)   treated graphite flakes, expanded graphite flakes and
                   flexible graphite [text redacted] by UCAR CARBON, its
                   Affiliates or subcontractors [text redacted], compositions
                   which include one or more of the foregoing, and articles made
                   therefrom and methodology relating thereto, and methodology
                   relating to the use of any of the foregoing, which were owned
                   or controlled by UCAR CARBON before the Effective Date; and

                   (b)   the materials described in Schedule B, but excludes
                   everything comprising the BPS Background IPR.

INTERPRETATION

1.2        In this Agreement, except as otherwise expressly provided or unless
the context otherwise requires,

           (a)      "this Agreement" means this Collaboration Agreement as from
           time to time supplemented or amended by one or more agreements
           entered into pursuant to the applicable provisions hereof,

                                       5
<PAGE>   7
           (b)     the headings in this Agreement are inserted for convenience
           only and do not form a part of this Agreement and are not intended
           to interpret, define or limit the scope, extent or intent of this
           Agreement or any provision hereof,

           (c)     the word "including", when following any general statement
           or term, is not to be construed as limiting the general statement or
           term to the specific items or matters set forth or to similar items
           or matters, but rather as permitting the general statement or term
           to refer to all other items or matters that could reasonably fall
           within its broadest possible scope,

           (d)     except where otherwise specified, all references to currency
           mean currency of the United States of America,

           (e)     a reference to a statute includes all regulations made
           thereunder, all amendments to the statute or regulations in force
           from time to time, and any statute or regulation that supplements or
           supersedes such statute or regulations,

           (f)     a reference to an entity includes any successor to that
           entity,

           (g)     words importing the masculine gender include the feminine or
           neuter, words in the singular include the plural, words importing a
           corporate entity include individuals, and vice versa,

           (h)     a reference to "approval", "authorization" or "consent"
           means written approval, authorization or consent,

           (i)     a reference to a Part is to a Part of this Agreement and the
           symbol Section followed by a number or some combination of numbers
           and letters refers to the section, paragraph, subparagraph, clause
           or subclause of this Agreement so designated.

SCHEDULES

1.3        The following schedules are incorporated in to this Agreement by
reference and form a part hereof:

                   Schedule A - Statement of Work
                   Schedule B - List of Materials
                   Schedule C - Mutual Secrecy Agreement

                                     PART 2

                                 COLLABORATION

COLLABORATION

2.1        BPS and UCAR CARBON will work jointly and individually at their
respective facilities and will co-operate in their research and development
activities as may be required or expedient

                                       6
<PAGE>   8
to produce or create commercially viable versions of the Target Products
primarily for use in PEM Fuel Cells.

LIMITED PURPOSE

2.2        The Collaboration will be for the purposes of research and
development only, will include the activities described in the SOW, and will
encompass all research, design, development, improvement and other
experimentation and performance testing of the Target Products during the
Collaboration Period and the provision of reports and advice by the parties to
one another with respect to the development of such products and techniques and
methods of their manufacture and exploitation.

COLLABORATION TERM

2.3        The term of the Collaboration (the "Collaboration Period") will be
three years commencing on the date set forth on page 1 of this Agreement (the
"Effective Date") subject to extension or earlier termination as provided in
this Agreement or as may be mutually agreed to by the parties.

STEERING COMMITTEE

2.4        The parties will establish a steering committee (the "Committee")
comprising two representatives of each party. Each party may replace, from time
to time, any member appointed by it on the Committee by giving written notice
thereof to the other party. The Committee will meet regularly but not less than
twice per year and meetings of the Committee may be held by telephone
conference. The decisions of the Committee will be made unanimously by all of
its members. All proceedings and decisions of the Committee will be recorded in
minutes which will be signed by at least one member of the Committee appointed
by each party.

DUTIES OF COMMITTEE

2.5        The Committee will, among other things,

           (a)     monitor the progress and review the performance of each of
           the parties,

           (b)     oversee all work to be performed by each of the parties
           pursuant to the Collaboration (including, but not limited to, the
           work for which each party is responsible as may be described in any
           work-plan pertaining to the Collaboration),

           (c)     review patent-related and other intellectual property issues
           and define the parties' general strategy concerning the same,

           (d)     promptly resolve problems and disputes submitted to the
           Committee by either party,

           (e)     evaluate the results of each phase of the Collaboration and
           discuss all technical issues arising with regard to the
           Collaboration,

                                       7
<PAGE>   9
           (f)     determine the ownership of Arising IPR which may result
           pursuant to the Collaboration but only to the extent the same is not
           provided for in this Agreement,

           (g)     modify the SOW as and when deemed necessary,

           (h)     review, on a regular basis, the cost of developing and
           producing the Materials and the projected date of commercialization
           of PEM Fuel Cells containing Target Products and make
           recommendations to the parties regarding the same, and

           (i)     review, and where appropriate approve the written summaries
           prepared by the Project Managers pursuant to Section 2.7(d).

WORK AND COSTS

2.6        Each party will use all reasonable efforts to successfully,
diligently and on a timely basis, carry out the portion of the work for which
it is responsible as set forth in the SOW for the achievement of the objectives
of the Collaboration. Unless otherwise agreed, each party will bear all its own
costs and expenditures in connection with its activities pursuant to the
Collaboration except that jointly incurred costs will be borne by the parties
equally.

PROJECT MANAGER

2.7        Each of the parties will appoint and maintain, until the expiry of
the Collaboration Period, a project manager ("Project Manager") and may from
time to time change its Project Manager, upon prior written notice to the other
party. Each party's Project Manager will be responsible for that party's
performance under this Agreement and will coordinate and cooperate with the
Committee concerning the management, coordination and administration of the
activities of such party under this Agreement. Specifically, the Project
Managers will

           (a)     exchange results and all other relevant information arising
           pursuant to the Collaboration,

           (b)     specify detailed objectives of the Collaboration, the work
           to be performed by each party and relevant specifications and
           appropriate targets, to the extent deemed necessary for the success
           of the Collaboration,

           (c)     maintain books and written records of the dates on which
           technology is disclosed by one party to the other pursuant to the
           Collaboration, and

           (d)     jointly prepare a written summary for the Committee every
           six months on the results and progress of the Collaboration.

PRODUCT DEVELOPMENT LEAD TIME

2.8        During the Collaboration Period,

           (a)     UCAR CARBON will not, and it will ensure that its Affiliates
           will not, directly or indirectly,

                                       8
<PAGE>   10
                 (i)      be involved with any Person other than BPS in any
                 development of electrically conductive fuel cell separator
                 plates or enter into any negotiations with any Person
                 regarding the same, or

                 (ii)     develop or manufacture fuel cells or electrically
                 conductive fuel cell separator plates or market, or offer for
                 sale or sell fuel cells or electrically conductive fuel cell
                 separator plates, whether for development, testing or other
                 purposes, except for and on behalf of and at the request of
                 BPS, and

         (b)     BPS will not, and it will ensure that its Affiliates will not,
         directly or indirectly,

                 (i)      be involved with any Person other than UCAR CARBON in
                 any development of the Materials for use in electrically
                 conductive fuel cell separator plates or enter into any
                 negotiations with any Person regarding the same, or

                 (ii)     except as specifically permitted under Section 2.9
                 and Part 7, develop or manufacture the Materials for use in
                 electrically conductive fuel cell separator plates or market,
                 or offer for sale or sell the same, whether for development,
                 testing or other purposes.

LICENSE BY UCAR

2.9      Subject to Section 7.2(d) and the confidentiality obligations under
Part 4, UCAR hereby grants to BPS, for the period (the "Exclusive Period")
commencing the Effective Date and ending six years after the end of the
Collaboration Period, which period shall automatically continue for 1 year
periods thereafter unless written notice is given by one party to the other 60
days prior to the end of the current period, an exclusive (even as to UCAR),
worldwide, royalty-free and paid-up right and license, sublicensable by BPS, to
exploit the UCAR Arising IPR and the UCAR Background IPR, solely to enable BPS
to make, have made, use or sell the Materials only in connection with the
development, manufacture, use or sale of electrically conductive fuel cell
separator plates and for no other purpose.

SUBLICENSE BY BPS

2.10     Subject to the confidentiality obligations under Part 4, BPS hereby
grants to UCAR, for the Exclusive Period, a non-exclusive, worldwide,
royalty-free and paid-up right and license, by way of sublicense, solely to use
the UCAR Arising IPR and the UCAR Background IPR to produce the Materials
exclusively for and on behalf of BPS, and where requested by BPS, BPS's
Affiliates and licensees. So long as UCAR CARBON is not subject to an Event of
Default, BPS will not grant any other sublicense of UCAR CARBON's license to
BPS under Section 2.9.

2.11     From and after the expiration of the Exclusive Period, as defined in
Section 2.9 above, BPS covenants not to sue UCAR CARBON on account of any sale
by UCAR CARBON of Materials included in Arising IPR for use in PEM Fuel Cells
and electrically conductive fuel cell separator plates and BPS further
covenants not to sue any purchaser from UCAR CARBON of such Materials on
account of such use.

                                       9
<PAGE>   11
                                     PART 3

                             INTELLECTUAL PROPERTY

DISCLOSURE OF IPR FOR THE COLLABORATION

3.1      Each party will disclose to the other its Background IPR but only to
the extent strictly necessary for the Collaboration.

BPS'S LICENSE TO UCAR CARBON FOR COLLABORATION

3.2      BPS hereby grants to UCAR CARBON a non-exclusive, non-transferable,
royalty-free, right (without the right to sub-license) to use, subject to
Section 3.1, the BPS Background IPR and the BPS Arising IPR (in each case
subject to the confidentiality obligations contained in Part 4) until the end
of the Collaboration Period for the sole purpose of carrying out the work under
the Collaboration. For greater certainty the license granted by BPS to UCAR
CARBON under this Section 3.2 does not include any right to manufacture, sell
or distribute products using, or to otherwise exploit, the BPS Background IPR
or the BPS Arising IPR for any other purpose.

UCAR CARBON'S LICENSE TO BPS FOR COLLABORATION

3.3      UCAR CARBON hereby grants to BPS a non-exclusive, non-transferable,
royalty-free, right (without the right to sub-license) to use, subject to
Section 3.1, the UCAR Background IPR and the UCAR Arising IPR (in each case
subject to the confidentiality obligations contained in Part 4) until the end
of the Collaboration Period for the sole purpose of carrying out the work under
the Collaboration. For greater certainty, except as otherwise set forth in
Section 2.9 and Part 7, the license granted by UCAR CARBON to BPS under this
Section 3.3 does not include any right to manufacture, sell or distribute
products using, or to otherwise exploit, the UCAR Background IPR or the UCAR
Arising IPR for any other purpose.

OWNERSHIP OF ARISING IPR

3.4      Where pursuant to the Collaboration any Intellectual Property which
specifically relates to the Materials or the Target Products is invented,
discovered, improved or otherwise developed or made by one party, such party
will disclose the same to the other. Regardless of inventorship, ownership of
all Intellectual Property in any such invention, discovery, improvement or
development will vest immediately and is hereby assigned in accordance with the
definitions of BPS Arising IPR and UCAR Arising IPR.  To this end the parties
will execute or cause to be executed such deeds, documents, instruments,
assignments and moral rights waivers as may be necessary to effect the intent
of this Section 3.4.

PATENTS

3.5      Each party that is entitled to ownership of any Intellectual Property
created pursuant to the Collaboration as described in Section 3.4 will, at its
option, prosecute patents with respect to the same. Each party will execute all
such documents, execute or obtain such assignments and waivers, including
waivers of moral rights, and do all such other things as are reasonably
requested by the owner of such Intellectual Property in connection with any
application or

                                       10
<PAGE>   12
prosecution of patents in respect of the same and will assist the owner in all
respects necessary to enable filing and prosecution of any such application.
The owner will be responsible for filing, prosecuting and maintaining patent
applications it files.

CONSENT TO USE OF CONFIDENTIAL INFORMATION

3.6      Neither party's patent applications may include any Background IPR,
Arising IPR or Confidential Information of the other without the express
written consent of the other party.

INFRINGEMENT CLAIM

3.7      If during the Collaboration Period either party discovers any third
party infringement of IPR belonging to either party, it will promptly notify
the other party.

                                     PART 4

                                CONFIDENTIALITY

CONFIDENTIALITY OBLIGATIONS

4.1      Each party (for purposes of this Part 4, the "Recipient"), at all
times during the Collaboration Period and for a period of ten years after the
expiry thereof,

         (a)     will, and will ensure that each of its directors, officers,
         employees, Affiliates, licensees, including sublicensees
         (collectively, the "Recipient's Agents") will, hold in confidence and
         keep confidential the Confidential Information of a party (the
         "Disclosing Party") disclosed to it by the Disclosing Party,

         (b)     will not, and will ensure that the Recipient's Agents will
         not, directly or indirectly, use or disclose any such Confidential
         Information except to the extent that it is strictly necessary for the
         Collaboration,

         (c)     will cause the Recipient's Agents that are recipients of or
         exposed to such Confidential Information, to execute confidentiality
         agreements to protect the same,

         (d)     will not, and will ensure that the Recipient's Agents will
         not, except to the extent necessary for the Collaboration, make copies
         of or otherwise reproduce such Confidential Information, and

         (e)     will, and will ensure that each of the Recipient's Agents
         will, use commercially reasonable best efforts to maintain all such
         Confidential Information in a manner so as to protect the same against
         wrongful disclosure, misuse, espionage and theft.

EXCEPTIONS FOR CONFIDENTIALITY

4.2      Nothing in this Agreement will prevent the Recipient or the
Recipient's Agents from making use of or disclosing any Confidential
Information disclosed to them by the Disclosing Party

                                       11
<PAGE>   13
         (a)     which is or becomes generally available to the public through
         no breach of this Agreement or any other obligation of the Recipient
         or the Recipient's Agents to the Disclosing Party,

         (b)     of which the Recipient or the Recipient's Agents had knowledge
         before the date of this Agreement, as evidenced by competent proof,
         unless the same was disclosed to the Recipient or the Recipient's
         Agents by the Disclosing Party,

         (c)     of which the Recipient or the Recipient's Agents obtained
         knowledge from a third party, as evidenced by competent proof, unless
         such third party obtained such Confidential Information in violation
         of any duty of confidence owed to the Disclosing Party, or

         (d)     which is required to be disclosed pursuant to law or a rule,
         regulation, policy or order of a governmental authority having
         jurisdiction or pursuant to a final order or judgment of a court of
         competent jurisdiction and in such case the parties will cooperate
         with one another to obtain an appropriate protective order or other
         reliable assurance that confidential treatment will be afforded to
         such Confidential Information.

EMPLOYMENT RELATIONS

4.3      Neither party will, during the Collaboration Period and for a period
of two years next after the expiry thereof, solicit for employment any
individual who is, at the time of such solicitation, employed by the other
party or its Affiliates nor will such party, directly or indirectly, induce any
such individual to leave his or her employment.  Nothing herein will prevent a
party from employing any such employee so long as no solicitation or inducement
has been made to such employee by or on behalf of such party.

REASONABLE RESTRICTION

4.4      Each party agrees that the restrictions contained in this Part 4 are
reasonable for the protection of the respective legitimate business interests
of the parties.

NON-DISCLOSURE OF COLLABORATION

4.5      Except as may be required by law or applicable securities regulatory
authorities, neither party will make public the existence of this Agreement or
the Collaboration hereunder or the negotiations leading to or pursuant to this
Agreement, without the written consent of the other party. Notwithstanding the
foregoing, as soon as reasonably practicable after the execution by the parties
of an agreement governing the supply of the Materials by UCAR CARBON to BPS as
contemplated in Section 5.1, each party will be entitled to make public the
existence of such agreement provided that the form and substance of any such
publicity is first approved by the other party.

MUTUAL SECRECY AGREEMENT

4.6      The provisions of the Mutual Secrecy Agreement (and not Section 4.1
and Section 4.2 hereof) will apply to all "Proprietary Information" (as defined
in such agreement) disclosed by the parties to

                                       12
<PAGE>   14
one another before the Effective Date notwithstanding that such Proprietary
Information may be disclosed again as Confidential Information under this
Agreement.

ADDITIONAL CONFIDENTIALITY OBLIGATION OF UCAR CARBON

4.7      During the Exclusive Period, UCAR CARBON will not use or disclose, or
permit the use or disclosure of, any IPR that are the subject matter of the
license granted by UCAR to BPS under Section 2.9 other than for the purposes
specified in Section 2.9 and Section 2.10.

                                     PART 5

                                     SUPPLY

SUPPLY

5.1      UCAR CARBON will manufacture and supply to BPS, and BPS will purchase
from UCAR CARBON, all of BPS's requirements of the Materials during the
Collaboration Period; provided that BPS may acquire the Materials from sources
other than UCAR CARBON for electrically conductive fuel cell separator plates
during that period, but solely for benchmarking. The parties will negotiate in
good faith and use all commercially reasonable best efforts to conclude, within
90 days after the Effective Date or such other date as may be agreed to by the
parties in writing (the "Supply Agreement Deadline Date"), an agreement
governing the supply of the Materials, both during and beyond the Collaboration
Period, by UCAR CARBON to BPS and, where required by BPS, to BPS's Affiliates
and licensees.

                                     PART 6

                               DISPUTE RESOLUTION

INITIATION OF PROCESS

6.1      If at any time a dispute between the parties with respect to any
matter relating to this Agreement arises, a party that wishes that the issue be
considered further may give written notice (the "Dispute Notice") to the other
and to the Committee requiring that such issue or dispute be decided pursuant
to this Part 6.

REFERRAL TO COMMITTEE

6.2      If a Dispute Notice is given, either party may, in the first instance,
ask the Committee to initiate discussions with a view to settling the issue or
matter. A decision reached by the Committee and communicated by it in writing
to the parties will be binding on the parties and will be implemented.

REFERRAL TO CHIEF EXECUTIVE OFFICERS

6.3      If no decision is communicated by the Committee within 30 days after
such issue or dispute is referred to it, either party may at any time before a
decision thereon is so communicated, ask the Chief Executive Officers of each
of the parties to initiate discussions with

                                       13
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a view to settling the issue or matter. Once the issue or dispute is referred
to the Chief Executive Officers, the Committee will no longer have jurisdiction
to decide on the issue. A decision reached by such Chief Executive Officers and
communicated by them in writing to the parties will be binding on the parties
and will be implemented.

SUBMISSION TO ARBITRATION

6.4      If no decision is communicated by the Chief Executive Officers within
30 days after such issue or dispute is referred to them, either party may at
any time before a decision thereon is so communicated and less than 120 days
after delivery of the Dispute Notice, by further notice given to the other,
submit the issue or dispute for determination by a three member arbitration
panel in accordance with the rules of arbitration of the International Chamber
of Commerce.

ACCEPTANCE AND IMPLEMENTATION

6.5      Each of the parties will accept and proceed in good faith diligently
to implement the award or decision of the arbitrators on an arbitration
pursuant to Section 6.4.

PLACE OF ARBITRATION

6.6      All arbitration proceedings will be conducted in San Francisco,
California or in such other place as the parties may agree.

LEGAL PROCEEDINGS

6.7      A legal proceeding commenced by a party to this Agreement in respect
of an issue or dispute that may be arbitrated under this Agreement will be
stayed until the time during which arbitration may be initiated has expired or,
if arbitration is initiated, a decision on the arbitration is delivered or the
arbitration process has otherwise ended.

EXCLUSIONS

6.8      This Part 6 will not apply to the grant of provisional remedies,
including injunctions, restraining orders and specific performance, and each
party reserves its right to commence such action or seek such remedies from a
court of competent jurisdiction.

                                     PART 7

                                  TERMINATION

TERMINATION

7.1      Subject to earlier termination as provided in this Section 7.1, the
Collaboration hereunder will end as provided in Section 2.3. Thereafter the
Collaboration may be renewed year-to-year by mutual agreement. Notwithstanding
the foregoing, the Collaboration hereunder may be terminated by either party,

         (a)     without cause, upon 90 days' written notice to the other to
         that effect, or

                                       14
<PAGE>   16
         (b)     by written notice to the other, if the other becomes the
         subject to an Event of Default, or

         (c)     by written notice to the other, if no agreement for the supply
         of the Materials by UCAR CARBON to BPS has been concluded by the
         Supply Agreement Deadline Date, or

         (d)     by written notice to the other, if the parties

                 (i)      have completed the work required of them under the
                 SOW before the end of the Collaboration Period, and

                 (ii)     cannot agree on additional work to be done or the
                 milestones or other deliverables to be met, during the balance
                 of the Collaboration Period.

RIGHTS AND OBLIGATIONS OF THE PARTIES AFTER TERMINATION

7.2      Notwithstanding the foregoing, all rights and obligations of the
parties accruing before the effective date of the termination of the
Collaboration herein and all rights and obligations expressly stated to
continue after or accrue as a result of, the termination of the Collaboration,
will survive the effective date of such termination and will continue in full
force and effect, provided that

         (a)     if UCAR CARBON terminates the Collaboration herein without
         cause, or BPS terminates the Collaboration as a result of UCAR CARBON
         being the subject of an Event of Default,

                 (i)      Section 2.10 will cease to apply, and

                 (ii)     subject to the confidentiality obligations under Part
                 4, BPS will have, and UCAR CARBON will be deemed to have
                 granted to BPS, a perpetual, irrevocable, worldwide,
                 non-exclusive, royalty-free and paid-up right and license,
                 sublicensable by BPS, to exploit the UCAR Arising IPR and, to
                 the extent reasonably necessary, the UCAR Background IPR, to
                 enable BPS to make, have made, use or sell the Materials, in
                 connection with the development, manufacture, use or sale of
                 electrically conductive fuel cell separator plates. The grant
                 of the license under this Section 7.2(a)(ii) will be without
                 prejudice and in addition to the license granted under Section
                 2.9 and includes the right by BPS to disclose UCAR CARBON's
                 Confidential Information to BPS's sublicensees in connection
                 with the production, use or sale of the Materials. UCAR CARBON
                 will promptly, upon request, transfer to and provide BPS with
                 all relevant technology, information, training and technical
                 assistance as may be necessary for such purpose at a fee that
                 reflects no more than the reasonable cost of effecting such
                 technology transfer, training and technical assistance,

         (b)     if BPS terminates the Collaboration herein without cause, or
         UCAR CARBON terminates the Collaboration as a result of BPS being the
         subject of an Event of Default,

                                       15
<PAGE>   17
                 (i)      Section 2.9 and Section 2.10 will cease to apply, and

                 (ii)     subject to the confidentiality obligations under Part
                 4, BPS will provide UCAR CARBON with such irrevocable consents
                 as may be necessary to permit UCAR CARBON to make, have made
                 and sell the Materials,

         (c)     if the supply agreement contemplated in Section 5.1 is not
         concluded on or before the Supply Agreement Deadline Date, UCAR will,
         if so requested by BPS, continue supplying the Materials to BPS on
         commercially reasonable terms, at commercially reasonable prices for a
         period not exceeding 6 months. If the parties fail to agree on such
         terms or prices within 60 days after the Supply Agreement Deadline
         Date, the matter will be determined by arbitration pursuant to Section
         6.4, mutatis mutandis,

         (d)     Section 7.2(a) and (b), Section 2.8, Section 2.9 and Section
         2.10 will be suspended if the agreement for the supply of the
         Materials by UCAR CARBON to BPS, as contemplated in Section 5.1 has
         not been concluded on or before the Supply Agreement Deadline Date;
         provided that

                 (i)      subject to Section 7.2(d)(ii), such provisions will
                 reapply immediately following the execution of any such
                 agreement at any time after such date, and

                 (ii)     such provisions will be deemed cancelled if such an
                 agreement has not been concluded within 9 months after the
                 Supply Agreement Deadline Date, and

         (e)     for greater certainty, Section 7.2(a) and Section 7.2(b) will
         not apply if the Collaboration is terminated pursuant to Section
         7.1(d).

RETURN OF CONFIDENTIAL INFORMATION

7.3      Except as may be required for the purposes of effectively utilizing
any licensing rights arising upon or continuing after the end of the
Collaboration, forthwith upon termination of the Collaboration, each party
will, upon request, return or cause to be returned to the other all
Confidential Information of the other in its possession or under its control,
regardless of form, including all known and existing copies and reproductions
thereof.

                                     PART 8

                                    GENERAL

MODIFICATIONS, APPROVALS AND CONSENTS

8.1      No amendment, modification, supplement, termination or waiver of any
provision of this Agreement will be effective unless in writing signed by the
appropriate party and then only in the specific instance and for the specific
purpose given.

                                       16
<PAGE>   18
FURTHER ASSURANCES

8.2      The parties will execute such further assurances and other documents
and instruments and do such further and other things as may be necessary to
implement and carry out the intent of this Agreement.

ENTIRE AGREEMENT

8.3      The provisions in this Agreement constitute the entire agreement
between the parties hereto and supersede all previous expectations,
understandings, communications, representations and agreements whether verbal
or written between the parties.

NOTICES

8.4      Every notice, request, demand, direction or other communication (each,
for the purposes of Section 8.4, Section 8.5 and Section 8.6, a "Notice")
required or permitted to be given pursuant to this Agreement will be deemed to
be well and sufficiently given if in writing and delivered by hand (including
recognized overnight courier service) or transmitted by facsimile, in each case
addressed as follows:

         (a)     if to BPS at:

                 9000 Glenlyon Parkway
                 Burnaby, British Columbia
                 Canada V5J 5J9
                 Attention:    Chief Operating Officer
                 Facsimile:    (604) 412-3131

                 with a copy to BPS's Vice-President and General Counsel at the
                 same address and facsimile number; and

         (b)     if to UCAR CARBON at:

                 3102 West End Avenue,
                 Suite 1100
                 Nashville, Tennessee
                 USA 37203
                 Attention:    The President
                 Facsimile:    (615) 760-7797

                 with a copy to UCAR CARBON's Vice-President and General
                 Counsel at the same address and facsimile number;

or to such other address or transmission receiving station as is specified by
the particular party by Notice to the others.

                                       17
<PAGE>   19
DEEMED RECEIPT

8.5      Any Notice delivered or sent as aforesaid will be deemed conclusively
to have been effectively given and received on the day Notice was delivered or
sent as aforesaid if it was delivered or sent on a day that was a Business Day
or on the next day that is a Business Day if it was delivered or sent on a day
that was not a Business Day.

CHANGE OF ADDRESS

8.6      A party may at any time, by Notice to the others, change its address
to some no less convenient address and will so change its address whenever its
address ceases to be suitable for delivery by hand.

ENUREMENT

8.7      This Agreement will enure to the benefit of and be binding upon the
parties and their respective successors and permitted assigns.

APPLICABLE LAW

8.8      This Agreement will be deemed to have been made in British Columbia,
Canada and the construction, validity and performance of this Agreement will be
governed in all respects by the laws of British Columbia and applicable laws of
Canada. The application of the provisions of the United Nations Convention on
Contracts for the International Sale of Goods are hereby excluded.

ATTORNMENT

8.9      Each party irrevocably attorns to the exclusive jurisdiction of the
courts of British Columbia, Canada and all courts having appellate jurisdiction
thereover in respect of any proceeding arising out of or relating to this
Agreement.

FORCE MAJEURE

8.10     Neither party will be liable to the other for default or delay in the
performance of its obligations under this Agreement if such default or delay is
caused by fire, strike, riot, war, act of God, delay of carriers, governmental
orders or regulation, complete or partial shutdown of plant by reason of
inability to obtain sufficient raw material or power, or any other occurrence
beyond the reasonable control of such party. The party whose performance is
prevented by any such occurrence will notify the other party of the same in
writing as soon as is reasonably possible after the commencement thereof, will
provide the other with full written particulars of such occurrence and attempts
made to remedy the same, will use commercially reasonable best efforts to
remedy such occurrence with all reasonable dispatch and, upon cessation of the
occurrence, will give prompt written notice to the other party of the same.

                                       18
<PAGE>   20
SEVERABILITY

8.11     If any provision contained in this Agreement is found by any court or
arbitrator for any reason, to be invalid, illegal or unenforceable in any
respect in any jurisdiction,

         (a)     the validity, legality and enforceability of such provision
         will not in any way be affected or impaired thereby in any other
         jurisdiction and the validity, legality and enforceability of the
         remaining provisions contained herein will not in any way be affected
         or impaired thereby, unless in either case as a result of such
         determination this Agreement would fail in its essential purpose, and

         (b)     the parties will use their best efforts to substitute for any
         provision that is invalid, illegal or unenforceable in any
         jurisdiction a valid and enforceable provision which achieves to the
         greatest extent possible the economic, legal and commercial objectives
         of such invalid, illegal or unenforceable provision and of this
         Agreement and, failing the agreement of the parties on such a
         substitution within 30 days after the finding of the court or
         arbitrator, either party may refer the matter for dispute resolution
         under Part 6.

COUNTERPARTS

8.12     This Agreement may be executed in counterparts or by facsimile, each
of which will together, for all purposes, constitute one and the same
instrument, binding on the parties, and each of which will together be deemed
to be an original, notwithstanding that both parties are not signatories to the
same counterpart or facsimile.

ASSIGNMENT

8.13     Neither party may assign any right, benefit or interest in this
Agreement without the written consent of the other party, and any purported
assignment without such consent will be void.

IN WITNESS WHEREOF the parties have executed this Agreement as of the day and
year first above written.

BALLARD POWER SYSTEMS INC.

By:      /s/
   ----------------------------------------

Its:     Vice President and General Counsel
         ----------------------------------

UCAR CARBON COMPANY INC.

By:      /s/ Peter B. Mancino
   ----------------------------------------

Its:     Vice President
    ---------------------------------------

                                       19
<PAGE>   21
                                   Schedule A

                               Statement of Work

Project Plan For Materials and Target Products Development
__________________________________________________________

BACKGROUND

The development of Materials for electrically conductive fuel cell separator
plates has taken several years and demonstrates that BPS and, where applicable,
one or more of its Affiliates (collectively "Ballard") and UCAR CARBON can work
together successfully.  Because of the past success of the co-operative effort
and the technical aspects of the material we now need to enter into a closer
relationship and to focus our efforts on taking this product into high volume
production. To this end we have entered into a Collaboration Agreement and in
support of that agreement a detailed Development Plan has been constructed.
This plan has been developed in a series of meetings with UCAR CARBON, BPS and
Ballard Power Systems GmbH ("Ballard Germany"). This plan is intended to guide
the development and outline the resources needed to achieve our goals.

THE DEVELOPMENT PLAN

The work over the next few years has been divided into 5 programs. For each
program a "champion" has been selected at both Ballard and UCAR CARBON. Each of
these programs has interactions with the others and it will be a significant
challenge to co-ordinate the activities at the three work locations. [text
redacted] Telephone meetings will be held by the team to discuss progress.

The plan will be guided by the Committee which will set goals and priorities.
The Committee will consist of a manager and one of the technical team leaders
from each of Ballard and UCAR CARBON. The Committee will meet [text redacted] to
evaluate progress and set or adjust the goals. The individual teams will be
responsible for detailed scheduling and planning.

Each of the programs discussed below (with the exception of the production
preparation study) has an iterative nature. Each program also has associated
technical risks. It is expected that each iteration will produce an improvement
than can be integrated with the results of other programs and used in the
continued development of the fuel cell. A second series of programs will then
be planned and executed to make further improvements. For this reason specific
deliverables have been identified for 1999 but not for future years. The
Committee should set these based on the progress made in 1999.

1.       Material [text redacted]
         ________

Goal:    To improve the ability of a Material [text redacted]

Ballard Champion
UCAR Champion     [text redacted]
<PAGE>   22
Methodology:  [text redacted]

Deliverables:

1.       UCAR CARBON will supply Ballard with different grades of Materials to
         [text redacted]  by   [text redacted]
2.       Ballard will finish evaluation by  [text redacted]
3.       Preliminary specification for new grade Materials  [text redacted]
         will be issued by the team before      .  This specification will
         then be integrated in to other projects.
2.       [text redacted]

Goal:  To reduce the cost of Materials  [text redacted]

Ballard Champion:   [text redacted]
UCAR Champion:

Methodology:

[text redacted]  Each of these parameters interact with the final properties of
the Materials. New grades which meet the overall technical requirements must be
developed based on a broader supply base as well as less costly treatment
processes.  [text redacted]  UCAR CARBON will produce series of test grades of
Materials and screen them using  [text redacted] tests. Ballard will then check
the leading Materials for performance in Target Products. From the initial
matrix of grades the most promising grades will integrated into the other
programs. The aim will be to qualify multiple grades from UCAR CARBON's existing
sources.

Deliverables

1.       UCAR CARBON will supply Ballard with  [text redacted]
                                                   Materials by  [text redacted]

                                       2
<PAGE>   23
2.       Ballard and UCAR CARBON will evaluate these grades of Materials Ex
         Situ by [text redacted].
3.       UCAR CARBON will deliver a new grade of Material [text redacted] and
         lower cost grades by [text redacted].

Goal: [text redacted]

Ballard Champion: [text redacted]
UCAR Champion:

Methodology:

[text redacted] It is now necessary to study the process and optimize the
process parameters to give the highest rate with the best plate properties.
[text redacted] A set of tools will be commissioned and used to test a matrix
of starting Materials. As new grades are developed in the other studies they
will be integrated into this program. This is the expected process for
[text redacted] parts electrically conductive fuel cell separator plates.

Deliverables

1.
2.    [text redacted]
4.

Goal:  To develop a [text redacted] Material based on [text redacted] which can
be formed [text redacted] into a Target Product.

Ballard Champion: [text redacted]
UCAR Champion:

Methodology:

[text redacted] Further work is needed to define the actual composition of the
new Material. As the composition is refined, [text redacted] will be carried out
to determine the processing characteristics. Initially this will be done with
[text redacted] and when the Material is more developed [text redacted] into
Target Products. As work progresses in developing lower cost grades of Materials
[text redacted], these concepts will be integrated into this program.

                                       3
<PAGE>   24
1.      UCAR CARBON will deliver to Ballard 4 [text redacted] Materials in 1999.
2.      UCAR CARBON will demonstrate [text redacted] at a laboratory scale on
        [text redacted].
3.      Ballard will examine each set of [text redacted] Material and report on
        its suitability for use in Target Products within 2 months after the
        delivery date.
4.      UCAR CARBON and Ballard will issue a preliminary specification [text
        redacted] in the Material on [text redacted].

5.      Target Product [text redacted]

Goal:  To determine what infrastructure will be needed for high volume
production of Target Products. [text redacted]

Ballard Champion:
UCAR Champion:

Methodology: [text redacted]

Deliverables

1.      [text redacted]

2.      Ballard and UCAR CARBON to define milestones and critical dates by
        for implementation activities to meet commercial production goals.

3.      [text redacted]

                                       4
<PAGE>   25
                                   Schedule B

                               List of Materials

<TABLE>
<CAPTION>
Grade              Date Sent               Description
<S>                  <C>                   <C>
</TABLE>

                    [text redacted]
<PAGE>   26
                                   Schedule C

                            MUTUAL SECRECY AGREEMENT

         This AGREEMENT effective as of the 17th day of May, 1996, is between
UCAR CARBON COMPANY INC., a Delaware corporation, having offices at 39 Old
Ridgebury Road, Danbury, Connecticut 06817 (hereinafter referred to as "UCAR
CARBON"); and BALLARD POWER SYSTEMS INC., having an office at 9000 Glenlyon
Parkway, Burnaby, B.C. Canada V5J 5J9 (hereinafter referred to as "BALLARD").

         WHEREAS, UCAR CARBON possesses certain proprietary information
(hereinafter UCAR CARBON Proprietary Information) relating to the manufacture
of flexible graphite for use in fuel cells.

         WHEREAS, BALLARD possesses certain proprietary information
(hereinafter BALLARD Proprietary Information) relating to fuel cells and
components for fuel cells.

         WHEREAS, UCAR CARBON and BALLARD desire to exchange such proprietary
information (hereinafter individually and collectively referred to as
"Proprietary Information") for the purpose of UCAR CARBON supplying flexible
graphite produced employing UCAR CARBON Proprietary Information to BALLARD
under a separate purchase order.

         WHEREAS, each party is willing to disclose to the other party its
Proprietary Information for the specific purposes of this Agreement under the
following conditions:

         1.      During the term of this Agreement, the receiving party agrees
to hold in confidence and not disclose to any person or persons, other than its
employees with a need to know, or use except for the purpose of this agreement,
for a period of fifteen (15) years from the date of each disclosure, any and
all Proprietary Information disclosed in writing and identified as Proprietary
Information by the disclosing party.  If Proprietary Information is disclosed
orally or in other than written form, it must be identified as Proprietary
Information at the time of
<PAGE>   27
disclosure and summarized in writing and identified as Proprietary Information
by the disclosing party within thirty (30) days from the date of the
disclosure.  It is understood that the foregoing obligation of confidentiality
does not apply to:

         a)      information which at the time of disclosure is in the public
                 domain;

         b)      information which is published or otherwise becomes part of
                 the public domain through no fault of the receiving party
                 after the disclosure hereunder;

         c)      information which the receiving party can demonstrate by
                 reasonably convincing evidence is already known or in the
                 possession of the receiving party at the time of disclosure
                 hereunder;

         d)      information that the receiving party can show was received by
                 it after the time of the disclosure hereunder from a third
                 party on a non-confidential basis who did not acquire such
                 information directly or indirectly from the disclosing party
                 under an obligation of confidence; or

         e)      information that is developed by an employee of the receiving
                 party independent of any such disclosure under this Agreement.

         2.      The receiving party agrees to use at least the same degree of
care in maintaining the other party's Proprietary Information confidential as
it does for maintaining the confidentiality of its own Proprietary Information
of a similar nature.

         3.      The receiving party agrees not to copy any Proprietary
Information without the written permission of the disclosing party, and shall
return such Proprietary Information and any copies when requested to do so by
the disclosing party during the term of this Agreement

         4.      No license, express or implied, is granted by either party to
the other party under any patent, trade secret or copyright now or hereafter
owned by either party under this Agreement.

         5.      This Agreement shall be construed and interpreted, and its
performance shall be governed by substantive laws of the state of Connecticut,
U.S.A., without recourse to its conflict of laws, rules or principles.
<PAGE>   28
         6.      Either party upon thirty (30) days notice given in writing to
the other party may terminate this Agreement.  However, termination of the
Agreement will not affect the confidentiality and non-use obligations of either
party.

AGREED:

BALLARD POWER SYSTEMS INC.                 UCAR CARBON COMPANY INC.

By  /s/ Keith B. Prater                    By  /s/ R.M. Flowers
    -------------------------------            --------------------------------

Name  Keith B. Prater                      Name  R.M. Flowers
      -----------------------------              ------------------------------

Title  Vice President                      Title  Dir.-Worldwide Tech.
       ----------------------------               -----------------------------

Date  21 Jun 96                            Date  July 2, 1996
      -----------------------------              ------------------------------

<PAGE>   29
                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                           PAGE
<S>                                                                                                         <C>
PART 1   DEFINITIONS AND INTERPRETATIONS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2

     Definitions  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2

     Interpretation   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5

     Schedules  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6

PART 2   COLLABORATION  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6

     Collaboration  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6

     Limited Purpose  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7

     Collaboration Term   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7

     Steering Committee   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7

     Duties of Committee  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7

     Work and Costs   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8

     Project Manager  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8

     Product Development Lead Time  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8

     License by UCAR  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9

     Sublicense by BPS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9

PART 3   INTELLECTUAL PROPERTY  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   10

     Disclosure of IPR for the Collaboration  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   10

     BPS's License to UCAR CARBON for Collaboration   . . . . . . . . . . . . . . . . . . . . . . . . . .   10

     UCAR CARBON's License to BPS for Collaboration   . . . . . . . . . . . . . . . . . . . . . . . . . .   10

     Ownership of Arising IPR   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   10

     Patents  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   10

     Consent to Use of Confidential Information   . . . . . . . . . . . . . . . . . . . . . . . . . . . .   11

     Infringement Claim   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   11

PART 4   CONFIDENTIALITY  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   11

     Confidentiality Obligations  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   11

     Exceptions for Confidentiality   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   11

     Employment Relations   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   12

     Reasonable Restriction   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   12

     Non-Disclosure of Collaboration  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   12

     Mutual Secrecy Agreement   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   12

     Additional Confidentiality Obligation of UCAR CARBON   . . . . . . . . . . . . . . . . . . . . . . .   13
</TABLE>

                                      -i-
<PAGE>   30
                              TABLE OF CONTENTS
                                 (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                           PAGE
<S>                                                                                                         <C>
PART 5   SUPPLY   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   13

     Supply   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   13

PART 6   DISPUTE RESOLUTION   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   13

     Initiation of Process  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   13

     Referral to Committee  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   13

     Referral to Chief Executive Officers   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   13

     Submission to Arbitration  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   14

     Acceptance and Implementation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   14

     Place of Arbitration   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   14

     Legal Proceedings  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   14

     Exclusions   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   14

PART 7   TERMINATION  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   14

     Termination  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   14

     Rights and Obligations of the Parties After Termination  . . . . . . . . . . . . . . . . . . . . . .   15

     Return of Confidential Information   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   16

PART 8   GENERAL  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   16

     Modifications, Approvals and Consents  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   16

     Further Assurances   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   17

     Entire Agreement   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   17

     Notices  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   17

     Deemed Receipt   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   18

     Change of Address  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   18

     Enurement  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   18

     Applicable Law   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   18

     Attornment   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   18

     Force Majeure  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   18

     Severability   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   19

     Counterparts   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   19

     Assignment   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   19
</TABLE>

                                      -ii-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]