Document:

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                                                                   Exhibit 10.40

                                                                        Domestic

                                [UCAR LETTERHEAD]

                                                               [DATE]

NAME
ADDRESS

Dear NAME:

      The Board of  Directors  (the  "Board") of UCAR  International  Inc.  (the
"Corporation")  has authorized  the grant to you of this Severance  Compensation
Agreement  (this  "Agreement").  The Board  recognizes that the possibility of a
Change in Control of the Corporation  exists,  as is the case with many publicly
held  corporations,  and that the  uncertainty  and questions which it may raise
among  management  may result in the  departure  or  distraction  of  management
personnel to the detriment of the Corporation and its stockholders.

      The  Board  has  determined  that  appropriate  steps  should  be taken to
reinforce and encourage the continued attention and dedication of members of the
Company's  management,  including  yourself,  to their  assigned  duties without
distraction in the face of potentially  disturbing  circumstances arising from a
possible  Change in Control of the  Corporation.  The Board has also  determined
that it is in the best  interests of the  Corporation  and its  stockholders  to
ensure your  continued  availability  to the Company in the event of a potential
Change in Control of the  Corporation.  References  herein to the "Company" mean
the Corporation and its subsidiaries.

      In order to  induce  you to remain in the  employ  of the  Company  and in
consideration of your continued service to the Company,  the Corporation and its
subsidiary or subsidiaries  signing the signature page of this Agreement jointly
and severally  agree that you shall receive the severance  benefits set forth in
this  Agreement  in the event your  employment  with the  Company is  terminated
subsequent  to a Change in Control of the  Corporation  under the  circumstances
described below.

      1.  Definitions.
          -----------

                a.      "CHANGE IN  CONTROL  OF THE CORPORATION" shall be deemed
to occur if any of the following circumstances shall occur:

                        (i)     any "person" or "group" within  the  meaning  of
                     Section 13(d) or 14(d)(2) of the Securities Exchange Act of

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                     1934 (the  "Act")  becomes the  beneficial  owner of 15% or
                     more of the then outstanding Common Stock or 15% or more of
                     the then outstanding voting securities of the Corporation;

                        (ii)    any "person" or "group"  within  the  meaning of
                     Section  13(d) or 14(d)(2) of the Act  acquires by proxy or
                     otherwise  the right to vote on any matter or question with
                     respect to 15% or more of the then outstanding Common Stock
                     or 15% or more of the  combined  voting  power  of the then
                     outstanding voting securities of the Corporation;

                        (iii)   Present  Directors  and  New Directors cease for
                     any reason to constitute a majority of the Board (and,  for
                     purposes of this clause (iii),  "Present  Directors"  shall
                     mean  individuals  who at the beginning of any  consecutive
                     twenty-four month period were members of the Board and "New
                     Directors"  shall mean  individuals  whose  election by the
                     Board or whose  nomination for election as directors by the
                     Corporation's  stockholders  was  approved  by a vote of at
                     least  two-thirds of the directors  then in office who were
                     Present Directors or New Directors);

                        (iv)    the stockholders of the  Corporation  approve a
                     plan  of  complete  liquidation  or  dissolution  of  the
                     Corporation; or

                        (v)     consummation   of:    (x)   a    reorganization,
                     restructuring, recapitalization, reincorporation, merger or
                     consolidation of the Corporation (a "Business Combination")
                     unless,  following  such Business  Combination,  (a) all or
                     substantially  all of the individuals and entities who were
                     the  beneficial  owners of the Common  Stock and the voting
                     securities of the Corporation outstanding immediately prior
                     to such Business Combination  beneficially own, directly or
                     indirectly,  more than 50% of the common equity  securities
                     and the combined  voting power of the voting  securities of
                     the  corporation  or  other  entity   resulting  from  such
                     Business   Combination   outstanding  after  such  Business
                     Combination (including,  without limitation,  a corporation
                     or  other  entity  which  as  a  result  of  such  Business
                     Combination  owns the  Corporation or all or  substantially
                     all of the assets of the  Corporation or the Company either
                     directly   or  through   one  or  more   subsidiaries)   in
                     substantially  the  same  proportions  as  their  ownership
                     immediately   prior  to  such   Business   Combination   of
                     outstanding  Common Stock and the combined  voting power of
                     the  outstanding  voting  securities  of  the  Corporation,
                     respectively, (b) no "person" or "group" within the meaning
                     of Section 13(d) or 14(d)(2) of the Act  (excluding (1) any
                     corporation  or other entity  resulting  from such Business
                     Combination  and (2) any employee  benefit plan (or related
                     trust) of the Company or any  corporation  or other  entity
                     resulting from such Business Combination) beneficially owns
                     15% or more of the common equity  securities or 15% or more
                     of the combined  voting power of the voting  securities  of
                     the  corporation  or  other  entity   resulting  from  such

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                     Business   Combination   outstanding  after  such  Business
                     Combination,  except to the  extent  that  such  beneficial
                     ownership  existed prior to such Business  Combination with
                     respect to the Common  Stock and the voting  securities  of
                     the Corporation, and (c) at least a majority of the members
                     of the board of directors  (or similar  governing  body) of
                     the  corporation  or  other  entity   resulting  from  such
                     Business  Combination were members of the Board at the time
                     of the  execution of the initial  agreement  providing  for
                     such Business  Combination  or at the time of the action of
                     the Board approving such Business Combination, whichever is
                     earlier; or (y) any sale, lease, exchange or other transfer
                     (in one transaction or a series of related transactions) of
                     all or  substantially  all of the assets of the Corporation
                     or the Company, whether held directly or indirectly through
                     one or more subsidiaries  (excluding any pledge,  mortgage,
                     grant  of  security  interest,  sale-leaseback  or  similar
                     transaction, but including any foreclosure sale), provided,
                     that, for purposes of clauses (v)(x) and (v)(y) above,  the
                     divestiture of less than substantially all of the assets of
                     the  Corporation  or the  Company in one  transaction  or a
                     series of related  transactions,  whether effected by sale,
                     lease,  exchange,  spin-off,  sale of stock of or merger or
                     consolidation of a subsidiary, transfer or otherwise, shall
                     not constitute a Change in Control of the Corporation.

Notwithstanding the foregoing,  (A) a Change in Control of the Corporation shall
not be deemed to occur:

      (I)  pursuant to clause (i) or (ii) above,  solely  because 15% or more of
the then outstanding  Common Stock or the then outstanding  voting securities of
the  Corporation is or becomes  beneficially  owned or is directly or indirectly
held or  acquired by one or more  employee  benefit  plans (or  related  trusts)
maintained by the Company; or

      (II) pursuant to clause (v)(y) above, (1) if the Board determines that any
sale,  lease,  exchange or other transfer does not involve all or  substantially
all of the  assets of the  Corporation  or the  Company  or (2) unless the Board
determines  otherwise,  solely because of the consummation of a transaction or a
series of transactions  pursuant to which the Company sells,  distributes to the
Corporation's stockholders,  or otherwise transfers or disposes of any or all of
its  ownership of its natural,  acid-treated  and  flexible  graphite  business,
however owned (including  ownership  through one or more dedicated  subsidiaries
and holding companies therefor and successors thereto); and

      (B) to the extent that a "person" or "group" within the meaning of Section
13(d)  or  14(d)(2)  of the Act is the  beneficial  owner  of 15% or more of the
Common Stock or the voting  securities of the  Corporation on May 9, 2000,  then
the references  therein to 15% shall be deemed to be references to 22.5% as (but
only as) to such "person" or "group."

For purposes of this Agreement, references to "beneficial owner" and correlative
phrases shall have the same  definition as set forth in Rule 13d-3 under the Act
(except  that  ownership  by  underwriters  for  purposes of a  distribution  or
offering  shall not be deemed to be "beneficial  ownership"),  references to the

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Act or rules and  regulations  thereunder  shall  mean those in effect on May 9,
2000 and  references  to  "Common  Stock"  shall  mean the  common  stock of the
Corporation.

            b.  "CODE"  shall mean the  Internal  Revenue  Code of 1986,  as
amended.

            c.  "DATE OF TERMINATION" shall mean:

                        (i) in case  employment  is terminated  for  Disability,
                     thirty  (30)  days  after  Notice of  Termination  is given
                     (provided that you shall not have returned to the full-time
                     performance  of your  duties  during  such  thirty (30) day
                     period); and

                        (ii) in all  other  cases,  the  date  specified  in the
                     Notice of Termination  (which shall not be less than thirty
                     (30) nor more than sixty (60) days, respectively,  from the
                     date such Notice of Termination is given).

            d.  "DISABILITY"  shall mean  total  physical  or mental  disability
rendering you unable to perform the duties of your  employment  for a continuous
period of six (6) months.  Any question as to the  existence of your  Disability
upon which you and the Company  cannot agree shall be  determined by a qualified
physician  (not employed by the Company)  selected by you (or, if you are unable
to make such selection,  made by any adult member of your immediate  family) and
approved by the Company.  The determination of such physician made in writing to
the Company and to you shall be final and  conclusive  for all  purposes of this
Agreement.

            e.  "GOOD REASON FOR  RESIGNATION"  shall mean the occurrence of
any of the following:

                        (i) (A) a change  in your  status or  position  with the
                     Company,   which  in  your  reasonable  judgment  does  not
                     represent a status or position comparable to your status or
                     position  immediately  prior a  Change  in  Control  of the
                     Corporation  or a  promotion  from your  status or position
                     immediately   prior  to  a  Change   in   Control   of  the
                     Corporation; or

                              (B) a  reduction  in the  level of your  reporting
                     responsibility as it existed  immediately prior to a Change
                     in Control of the Corporation; or

                              (C) the  assignment  to  you  of  any  duties  or
                     responsibilities    or   a   diminution    of   duties   or
                     responsibilities,  which in your  reasonable  judgment  are
                     inconsistent  with your status or position with the Company
                     in effect  immediately  prior to a Change in Control of the
                     Corporation;

                              it being  understood  that any of the foregoing in
                     connection  with  a  termination  of  your  employment  for
                     Retirement,  Disability or Termination  for Cause shall not
                     constitute Good Reason for Resignation;

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                        (ii) a  reduction  by the  Company in the annual rate of
                     your base salary as in effect immediately prior to the date
                     of a Change in  Control of the  Corporation  or as the same
                     may be  increased  from  time  to time  thereafter,  or the
                     Company's  failure to increase the annual rate of your base
                     salary for a calendar  year in an amount at least  equal to
                     the  average  percentage  increase  in base  salary for all
                     employees  of  the  Company  with  Severance   Compensation
                     Agreements in the preceding  calendar year (and the Company
                     agrees that, within three (3) days after your request,  the
                     Company shall notify you of the average percentage increase
                     in base salary for all such  employees in the calendar year
                     preceding your request);

                        (iii) the  failure by the  Company to continue in effect
                     any compensation plan in which you participate as in effect
                     immediately   prior  to  a  Change   in   Control   of  the
                     Corporation,  including  but not limited to the  Retirement
                     Program,   the  Savings  Program,   any  of  the  Incentive
                     Compensation Plans or any substitute plans adopted prior to
                     a  Change  in  Control  of  the   Corporation,   unless  an
                     arrangement  satisfactory  to you  (embodied  in an ongoing
                     substitute or alternative  plan) has been made with respect
                     to such plan,  or the  failure by the  Company to  continue
                     your  participation  therein  on at  least as  favorable  a
                     basis, both in terms of the amount of benefits provided and
                     the  level  of  your   participation   relative   to  other
                     participants,  as existed  immediately prior to a Change in
                     Control of the Corporation;

                        (iv) the Company  requiring you to be based outside of a
                     thirty-five  (35) mile  radius  from where  your  office is
                     located  immediately  prior to a Change in  Control  of the
                     Corporation,  except for required  travel on the  Company's
                     business to an extent  substantially  consistent  with your
                     business travel  obligations  immediately prior to a Change
                     in Control of the Corporation;

                        (v) the  failure by the  Company to  continue to provide
                     you with benefits at least as favorable as those enjoyed by
                     you (and your dependents,  if applicable)  under any of the
                     Company's    pre-retirement   and   post-retirement    life
                     insurance,  medical,  health and accident,  and  disability
                     plans or any other  plan,  program or policy of the Company
                     intended  to  benefit  employees  in  which  you  (or  your
                     dependents)  were  participating  immediately  prior  to  a
                     Change in  Control  of the  Corporation,  the taking of any
                     action by the Company  which would  directly or  indirectly
                     materially  reduce any of such  benefits or deprive you (or
                     your  dependents) of any material fringe benefit enjoyed by
                     you (or your dependents)  immediately  prior to a Change in
                     Control of the  Corporation,  or the failure by the Company
                     to provide you with the number of annual paid vacation days
                     to which you were annually entitled  immediately prior to a
                     Change in Control of the Corporation;

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                        (vi) the failure of the Company to obtain a satisfactory
                     agreement  from any  Successor  (as defined in Paragraph 4a
                     hereof) to assume and agree to perform this  Agreement,  as
                     contemplated in Paragraph 4a hereof; or

                        (vii)  the  failure  of  the  Company  to  pay to you an
                     Incentive  Compensation  Award,  deferred  compensation  or
                     other  compensation  award earned, but not paid, prior to a
                     Change in Control of the Corporation.

            f.  "INCENTIVE   COMPENSATION"  means  any  compensation,   variable
compensation, bonus, benefit or award paid or payable in cash under an Incentive
Compensation Plan.

            g.  "INCENTIVE   COMPENSATION  AWARD"  shall  mean a cash payment or
payments awarded to you under any Incentive Compensation Plan.

            h.  "INCENTIVE   COMPENSATION   PLAN(S)"  shall  mean  any  variable
compensation or incentive  compensation  plan maintained by the Company in which
you  were  a  participant  immediately  prior  to a  Change  in  Control  of the
Corporation, including but not limited to the UCAR International Inc. Management
Incentive Plan.

            i.  "NOTICE  OF  TERMINATION"  shall  mean  a   written   notice  as
provided in Paragraph 8 hereof.

            j.  "RETIREMENT" shall mean a voluntary termination of employment in
accordance  with  the  Retirement  Program,  or in  accordance  with  any  other
retirement  arrangement  which is established  with your consent with respect to
you.

            k.  "RETIREMENT PROGRAM" shall mean the UCAR Carbon  Retirement Plan
and any excess or supplemental pension plans maintained by the Company.

            l.  "SAVINGS PROGRAM" shall mean the UCAR Carbon Savings Plan.

            m.  "TERMINATION   FOR   CAUSE"  shall   mean  termination  of  your
employment upon your willfully  engaging in conduct  demonstrably and materially
injurious to the Company,  monetarily  or  otherwise,  provided that there shall
have been delivered to you a copy of a resolution, duly adopted by the unanimous
affirmative vote of the entire membership of the Board at a meeting of the Board
called  and  held  for  such  purpose  (after  reasonable  notice  to you and an
opportunity for you, together with your counsel,  to be heard before the Board),
finding  that in the good  faith  opinion  of the Board  you were  guilty of the
conduct set forth and specifying the particulars thereof in detail.

For  purposes  of this clause (m), no act, or failure to act, on your part shall
be deemed  "willful" unless done, or omitted to be done, by you in bad faith and
without  reasonable belief that your action or omission was in the best interest
of the Company. Any act or failure to act based upon authority given pursuant to
a  resolution  duly adopted by the Board or based upon the advice of counsel for

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the Company shall be  conclusively  presumed to be done or omitted to be done by
you in good faith and in the best interests of the Company.

            n.  "VARIABLE  COMPENSATION  YEAR"  means  a  calendar   year  of an
Incentive Compensation Plan.

      2.        COMPENSATION  UPON TERMINATION OR WHILE  DISABLED.  Following  a
Change in Control of the  Corporation,  you shall be entitled to the following
benefits:

            a.  TERMINATION  OTHER THAN FOR  RETIREMENT,  DEATH,  DISABILITY  OR
TERMINATION  FOR CAUSE;  TERMINATION  BY YOUR  RESIGNATION  WITH GOOD REASON FOR
RESIGNATION. If your employment by the Company shall be terminated subsequent to
a Change in Control of the Corporation and during the term of this Agreement (a)
by the Company other than for Retirement,  Death,  Disability or Termination for
Cause or (b) by you for Good Reason for Resignation,  then you shall be entitled
to the benefits provided below,  without regard to any contrary provision of any
plan:

                        (i) ACCRUED SALARY. The Company shall pay you, not later
                     than the fifth day following the Date of Termination,  your
                     base salary and  vacation  pay accrued  through the Date of
                     Termination  (including any banked  vacation and any vested
                     vacation  for  the  calendar  year  in  which  the  Date of
                     Termination  occurs)  at the rate in effect at the time the
                     Notice  of  Termination  is given (or at the rate in effect
                     immediately   prior  to  a  Change   in   Control   of  the
                     Corporation, if such rate was higher).

                        (ii) ACCRUED INCENTIVE  COMPENSATION.  The Company shall
                     pay you,  not later than  thirty (30) days  following  your
                     Date of Termination,  the amount of your accrued  Incentive
                     Compensation which shall be determined as follows:

                              (A) If the Date of Termination is after the end of
                     a  Variable   Compensation   Year,  but  before   Incentive
                     Compensation for said Variable  Compensation  Year has been
                     paid, the Company shall pay to you under this Agreement for
                     your service  during such  Variable  Compensation  Year the
                     following:

                                          The  amount  of your  target  variable
                        compensation  payment (i.e.,  the percent of your salary
                        grade  midpoint at risk) for such Variable  Compensation
                        Year.

                              (B) In  addition,  if the Date of  Termination  is
                     other than the first day of a Variable  Compensation  Year,
                     the Company shall pay to you under this  Agreement for your
                     service  during such Variable  Compensation  Year up to the
                     Date of Termination, the following:

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                                          The  amount  of your  target  variable
                        compensation  payment (i.e.,  the percent of your salary
                        grade  midpoint at risk) for such Variable  Compensation
                        Year (or if such  target has not then been  established,
                        your  target   variable   compensation   award  for  the
                        immediately   preceding  Variable   Compensation  Year),
                        multiplied by a fraction,  the numerator of which is the
                        total  number of days which have  elapsed in the current
                        Variable  Compensation  Year to the Date of  Termination
                        and the denominator of which is three hundred sixty-five
                        (365).

                              If there is more than one  Incentive  Compensation
                     Plan,  your  accrued  Incentive   Compensation  under  each
                     Incentive  Compensation Plan shall be determined separately
                     for each such Plan.

                              For the purpose this Paragraph 2a(ii),  the amount
                     of your target variable compensation payment shall be used,
                     whether or not such  Incentive  Compensation  was  actually
                     paid to you or was  includible  in your  gross  income  for
                     Federal income tax purposes.

                        (iii) INSURANCE  COVERAGE.  The Company shall arrange to
                     provide you (and your dependents, if applicable) with life,
                     disability,   accident,   dental   and   medical   benefits
                     substantially  equivalent to those which you are receiving,
                     or were entitled to receive,  from the Company  immediately
                     prior to a  Change  in  Control  of the  Corporation.  Such
                     benefits  shall be  provided  to you for the  longer of (x)
                     thirty-six  (36) months after such Date of  Termination  or
                     (y) the period during which such  benefits  would have been
                     provided  to  you,  as a  terminated  employee,  under  the
                     applicable life, disability,  accident,  dental and medical
                     plans in effect immediately prior to a Change in Control of
                     the  Corporation  (except that after a period of thirty six
                     (36) months such  benefits  shall be provided to you on the
                     same  financial  terms and conditions as provided for under
                     the respective  plans).  Such benefits shall be provided to
                     you in lieu  of any  continuation  coverage  you  would  be
                     eligible for under COBRA.

                              If  you  are  a   participant   in  the  Company's
                     Executive  Life  Insurance  Plan,  you shall  have the same
                     rights   thereunder   as  a  person  who  retires   with  a
                     non-actuarially  reduced  pension  (whether  or not you are
                     eligible for such a pension).

                        (iv)  SEVERANCE  PAYMENT.  The  Company  shall  pay as a
                     severance  payment  to you,  not  later  than the fifth day
                     following  the Date of  Termination,  a lump sum  severance
                     payment  (the   "Severance   Payment")  equal  to  two  and
                     ninety-nine  hundreths  (2.99) times the sum of the amounts
                     set forth in the following paragraphs (A) and (B), less the
                     amount set forth in the following paragraph (C):

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                              (A) the greater of your  annual base salary  which
                     was payable to you by the Company  immediately prior to the
                     Date of  Termination  or your annual base salary  which was
                     payable to you by the Company immediately prior to a Change
                     in Control of the Corporation; plus

                              (B) the greater of:

                                          (I) The amount of your target variable
                        compensation  payment (i.e.,  the percent of your salary
                        grade  midpoint  at risk) for the year in which the Date
                        of  Termination  occurs (or if such  target has not then
                        been  established,  your  target  variable  compensation
                        award   for   the   immediately    preceding    Variable
                        Compensation Year); or

                                          (II) The   amount   of   your   target
                        variable compensation payment (i.e., the percent of your
                        salary grade midpoint at risk) for the year in which the
                        Change in Control of the Corporation  occurs (or if such
                        target  has  not  then  been  established,  your  target
                        variable   compensation   award   for  the   immediately
                        preceding Variable Compensation Year); minus

                                    (C) the amount of any  severance  payment or
                        the value of any  severance  benefit  received  or to be
                        received by you from the Company pursuant to any plan or
                        policy of the Company or pursuant to any other agreement
                        between you and the Company.

                              For   purposes   of   calculations    under   this
                     subparagraph  (iv),  the  amounts of base salary and target
                     variable   compensation   payments  shall  be  the  amounts
                     calculated  without  regard to whether or not such  amounts
                     were paid or  includible  in your gross income for Federal,
                     state, local, commonwealth or foreign income tax purposes.

                        (v)  REDUCTION  IN  SEVERANCE  PAYMENT.   The  Severance
                     Payment  shall be  reduced  only in the event  specifically
                     provided in this subparagraph (v). If the aggregate present
                     value,  as determined for purposes of Code Section 280G, of
                     all amounts  that are  parachute  payments  for purposes of
                     such  Section  exceeds  the  limitation  set  forth in Code
                     Section   280G(b)(2)(A)(ii)  by  an  amount  not  exceeding
                     $50,000,  then there shall be a reduction  in the amount of
                     your Severance Payment so that such limit is not exceeded.

                        (vi)  PAYMENT OF TAXES.

                                    (A) For purposes of this subparagraph  (vi),
                        the following terms shall have the following meanings:

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                                                            (I)   "Payment"
                                    shall mean any payment or  distribution  (or
                                    acceleration  of benefits) by the Company to
                                    or for your benefit (whether paid or payable
                                    or   distributed   or   distributable    (or
                                    accelerated)  pursuant  to the terms of this
                                    Agreement or any  termination or layoff plan
                                    referred  to in clause  (C) of  subparagraph
                                    (iv)  of this  Section  2a  (thus  excluding
                                    among  other  things  any  payment  under an
                                    employment   agreement),    but   determined
                                    without  regard to any  additional  payments
                                    required under this  subparagraph  (vi)). In
                                    addition,  "Payment"  shall also include the
                                    amount of income  deemed to be  received  by
                                    you as a result of the  acceleration  of the
                                    exercisability  of any of  your  options  to
                                    purchase  stock  of  the  Corporation,   the
                                    acceleration    of   the    lapse   of   any
                                    restrictions   on   performance   stock   or
                                    restricted  stock of the Corporation held by
                                    you or the  acceleration of payment from any
                                    deferral plan.

                                                                   (II)  "Excise
                                    Tax" shall  mean the  excise tax  imposed by
                                    Section 4999 of the Code, or any interest or
                                    penalties  incurred  by you with  respect to
                                    such excise tax.

                                                                   (III) "Income
                                    Tax"  shall  mean all taxes  other  than the
                                    Excise  Tax   (including   any  interest  or
                                    penalties   imposed  with  respect  to  such
                                    taxes), including,  without limitation,  any
                                    income and  employment  taxes imposed by any
                                    Federal  (including  (i) FICA  and  Medicare
                                    taxes  and (ii) the tax  resulting  from the
                                    loss of any Federal deductions or exemptions
                                    which would have been  available  to you but
                                    for receipt of the Payment),  state,  local,
                                    commonwealth or foreign government.

                                    (B) In the event it shall be determined that
                        a Payment  would be subject to an Excise  Tax,  then you
                        shall be  entitled to receive an  additional  payment (a
                        "Gross-Up  Payment")  in  an  amount  such  that,  after
                        payment by you of Income Tax and Excise Tax imposed upon
                        the  Gross-Up  Payment,  you  retain  an  amount  of the
                        Gross-Up  Payment  equal to the Excise Tax imposed  upon
                        the Payment.

                                    (C) All  determinations  required to be made
                        under this subparagraph (vi), including whether and when
                        a Gross-Up  Payment is  required  and the amount of such

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                        Gross-Up  Payment and the  assumptions to be utilized in
                        arriving  at such  determination,  shall  be made by the
                        public  accounting  firm that is retained by the Company
                        as of the date immediately  prior to a Change in Control
                        of the Corporation (the  "Accounting  Firm") which shall
                        provide  detailed  supporting  calculations  both to the
                        Company and to you within  fifteen  (15)  business  days
                        after the receipt of notice from you that there has been
                        a Payment,  or such  earlier time as is requested by the
                        Company  (collectively,  the  "Determination").  In  the
                        event that the Accounting  Firm is serving as accountant
                        or auditor for the individual, entity or group effecting
                        a Change in Control of the Corporation,  you may appoint
                        another nationally  recognized public accounting firm to
                        make  the   determinations   required  hereunder  (which
                        accounting  firm  shall  then  be  referred  to  as  the
                        Accounting Firm hereunder). All fees and expenses of the
                        Accounting  Firm shall be borne  solely by the  Company.
                        Any Gross-Up  Payment,  as  determined  pursuant to this
                        subparagraph  (vi),  shall be paid by the Company to you
                        within  ten (10) days  after the  Determination.  If the
                        Accounting Firm determines that no Excise Tax is payable
                        by you, you may request the  Accounting  Firm to furnish
                        you with a written  opinion  that  failure to report the
                        Excise Tax on your applicable  Federal income tax return
                        would not result in the  imposition  of a negligence  or
                        similar  penalty.  The  Determination  by the Accounting
                        Firm shall be binding  upon the  Company  and you.  As a
                        result of the  uncertainty in the application of Section
                        4999 of the Code at the time of the Determination, it is
                        possible that Gross-Up Payments which will not have been
                        made   by   the   Company    should   have   been   made
                        ("Underpayment"),   consistent  with  the   calculations
                        required  to be made  hereunder.  In the event  that the
                        Company  exhausts its remedies  pursuant to subparagraph
                        (vi)(D)  below and you  thereafter  are required to make
                        payment of any Excise Tax or Income Tax, the  Accounting
                        Firm shall determine the amount of the Underpayment that
                        has occurred and any such Underpayment shall be promptly
                        paid by the Company to or for your benefit.

                                    (D) You shall  notify the Company in writing
                        of any claim by the Internal  Revenue  Service  that, if
                        successful,  would require the payment by the Company of
                        the   Gross-Up   Payment  or  the   Underpayment.   Such
                        notification  shall be given as soon as practicable  but
                        no later  than  ten (10)  business  days  after  you are
                        informed in writing of such claim and shall  apprise the
                        Company  of the  nature  of such  claim  and the date on
                        which such claim is requested to be paid.  You shall not
                        pay such  claim  prior to the  expiration  of the 30-day
                        period  following the date on which you give such notice
                        to the Company  (or such  shorter  period  ending on the

                                       11

<PAGE>

                        date that any  payment  of taxes  with  respect  to such
                        claim is due).  If the Company  notifies  you in writing
                        prior to the  expiration  of such period that it desires
                        to contest such claim, you shall:

                                                            (1)   give     the
                                    Company   any    information    reasonably
                                    requested by the Company  relating to such
                                    claim,

                                                            (2)   take    such
                                    action in connection  with  contesting  such
                                    claim  as  the  Company   shall   reasonably
                                    request  in  writing   from  time  to  time,
                                    including,  without  limitation,   accepting
                                    legal  representation  with  respect to such
                                    claim by an attorney  reasonably selected by
                                    the Company,

                                                            (3)   cooperate
                                    with the  Company  in good  faith in order
                                    effectively to contest such claim, and

                                                            (4)   permit   the
                                    Company to  participate  in any proceeding
                                    relating to such claim;

                                          provided,  however,  that the  Company
                        shall  bear and pay  directly  all  costs  and  expenses
                        (including  additional  interest and penalties) incurred
                        in connection  with such contest and shall indemnify and
                        hold you harmless, on an after-tax basis, for any Excise
                        Tax  or  Income   Tax   imposed  as  a  result  of  such
                        representation   and  payment  of  costs  and  expenses.
                        Without  limitation on the foregoing  provisions of this
                        subparagraph  (vi)(D),  the  Company  shall  control all
                        proceedings  taken in connection  with such contest and,
                        at its sole  option,  may  pursue or forego  any and all
                        administrative   appeals,   proceedings,   hearings  and
                        conferences with the taxing authority in respect of such
                        claim and may, at its sole option,  either direct you to
                        pay the tax  claimed and sue for a refund or contest the
                        claim  in any  permissible  manner,  and  you  agree  to
                        prosecute  such  contest to a  determination  before any
                        administrative   tribunal,   in  a  court   of   initial
                        jurisdiction and in one or more appellate courts, as the
                        Company shall determine;  provided further,  that if the
                        Company  directs  you to pay  such  claim  and sue for a
                        refund,  the  Company  shall  advance the amount of such
                        payment  to  you on an  interest-free  basis  and  shall
                        indemnify and hold you harmless,  on an after-tax basis,
                        from any Excise Tax or Income Tax imposed  with  respect
                        to such  advance or with  respect to any imputed  income
                        with respect to such advance; and provided further, that
                        any extension of the statute of limitations  relating to
                        payment of taxes for your  taxable  year with respect to

                                       12

<PAGE>

                        which  such  contested  amount is  claimed  to be due is
                        limited  solely to such contested  amount.  Furthermore,
                        the Company's control of the contest shall be limited to
                        issues with respect to which a Gross-Up Payment would be
                        payable hereunder and you shall be entitled to settle or
                        contest,  as the case may be, any other issue  raised by
                        the  Internal   Revenue  Service  or  any  other  taxing
                        authority.

                                    (E)  If,  after  the  receipt  by  you of an
                        amount advanced by the Company  pursuant to subparagraph
                        (vi)(D)  above,  you become  entitled  to  receive,  and
                        receive,  any refund  with  respect to such  claim,  you
                        shall  (subject  to the  Company's  complying  with  the
                        requirements  of subparagraph  (vi)(D))  promptly pay to
                        the Company the amount of such refund (together with any
                        interest paid or credited thereon after taxes applicable
                        thereto).  If,  after  the  receipt  by you of an amount
                        advanced  by  the  Company   pursuant  to   subparagraph
                        (vi)(D),  a determination  is made that you shall not be
                        entitled to any refund  with  respect to such claims and
                        the Company does not notify you in writing of its intent
                        to contest such denial of refund prior to the expiration
                        of thirty (30) days after such determination,  then such
                        advance  shall be forgiven  and shall not be required to
                        be repaid.

                        (vii) NO DUTY TO MITIGATE.  You shall not be required to
                     mitigate  the amount of any  payment  provided  for in this
                     Paragraph 2 by seeking other employment, through use of tax
                     deductions or credits,  or otherwise,  nor shall the amount
                     of any  payment  or  benefit  hereunder  be  reduced by any
                     compensation  earned by you as the result of  employment by
                     another  employer or by retirement  benefits after the Date
                     of Termination, or otherwise; provided, however, should you
                     become  reemployed  in a job which (a) offers  medical plan
                     benefits  which are equal to or  greater  than the  medical
                     plan benefits provided to you under subparagraph  2(a)(iii)
                     and (b) such medical plan benefits are offered to you at no
                     cost,  you shall no longer be eligible  to receive  medical
                     plan benefits under this Agreement.

            b.  PAYMENTS WHILE DISABLED.  During any period prior to the Date of
Termination and during the term of this Agreement that you are unable to perform
your full-time  duties with the Company,  whether as a result of your Disability
or as a  result  of a  physical  or  mental  disability  that is not  total  and
therefore is not a Disability, you shall continue to receive your base salary at
the rate in effect at the  commencement  of any such period,  together  with all
other compensation and benefits that are payable or provided under the Company's
benefit plans, including its disability plans. After the Date of Termination for
Disability,  your benefits shall be determined in accordance with the Retirement
Program,   insurance  and  other  applicable   programs  of  the  Company.   The
compensation and benefits,  other than salary,  payable or provided  pursuant to
this  subparagraph b shall be the greater of (x) the amounts  computed under the

                                       13

<PAGE>

Retirement  Program,  disability  benefit plans,  insurance and other applicable
programs in effect  immediately  prior to a Change in Control of the Corporation
and (y) the amounts computed under the Retirement  Program,  disability  benefit
plans,  insurance  and  other  applicable  programs  in  effect  at the time the
compensation and benefits are paid.

            c.  PAYMENTS IF TERMINATED FOR CAUSE,  OR  TERMINATION  BY YOU OTHER
THAN WITH GOOD REASON FOR RESIGNATION. If your employment shall be terminated by
the Company as a Termination for Cause or by you other than with Good Reason for
Resignation,  the  Company  shall  pay you your  full base  salary  and  accrued
vacation pay  (including  any banked  vacation  and any vested  vacation for the
calendar  year in which  the Date of  Termination  occurs)  through  the Date of
Termination,  at the rate in effect at the time Notice of  Termination is given,
plus any benefits or awards  which have been earned or become  payable but which
have not yet been paid to you.  You shall  receive  any  payment  due under this
subparagraph c on your Date of Termination.  Thereafter,  the Company shall have
no further obligation to you under this Agreement.

            d.  AFTER   RETIREMENT   OR   DEATH.  If  your  employment  shall be
terminated  by your  Retirement,  or by reason of your  death,  your  benefits
shall be determined in accordance with the Company's  retirement and insurance
programs then in effect.

        3.      TERM OF AGREEMENT. This  Agreement  shall  commence  on the date
hereof  and shall  continue  in effect  through  December  31,  2000;  provided,
however,  that commencing on January 1, 2001 and each January 1 thereafter,  the
term of this Agreement shall  automatically  be extended for one additional year
unless,  not later than  September 30 of the preceding  year, the Company or you
shall have given  notice that it or you does not wish to extend this  Agreement.
Notwithstanding  any such notice by the  Company  not to extend,  if a Change in
Control  of the  Corporation  shall have  occurred  or been  publicly  reported,
proposed or announced  (regardless  of whether done so by the Company or a third
party)  during the original or any extended  term of this  Agreement,  or within
three months thereafter,  this Agreement shall continue in effect. In any event,
the term of this  Agreement  shall expire on the third (3rd)  anniversary of the
date of a Change in Control of the  Corporation.  This Agreement shall terminate
if your  employment is terminated by you or the Company prior to the  occurrence
of a Change in Control of the Corporation.

      4.    SUCCESSORS; BINDING AGREEMENT.

                a.  SUCCESSORS OF  THE  COMPANY. The  Company  will  require any
Successor  to expressly  assume and agree to perform this  Agreement in the same
manner and to the same extent  that the Company  would be required to perform it
if no such  succession  had taken  place.  Failure of the Company to obtain such
assent  at least  five  business  days  prior to the  time a  person  becomes  a
Successor  (or where  the  Company  does not have at least  five  business  days
advance notice that a person may become a Successor,  within three business days
after having notice that such person may become or has become a Successor) shall
constitute Good Reason for Resignation by you and, if a Change in Control of the
Corporation has occurred or thereafter occurs,  shall entitle you immediately to
the benefits provided in Paragraph 2a hereof upon delivery by you of a Notice of
Termination.  For purposes of this Agreement,  "Successor" shall mean any person
that obtains or succeeds  to, or has the  practical  ability to control  (either
immediately or with the passage of time), the Company's  business  directly,  by
merger or consolidation,  or indirectly, by purchase of voting securities of the
Company,

                                       14

<PAGE>

by acquisition of rights to vote voting  securities of the Company or otherwise,
including  but not limited to any person or group that  acquires the  beneficial
ownership or voting rights described in Paragraph 1a(i) or (ii).

                b.      YOUR SUCCESSOR.  This Agreement  shall   inure   to  the
benefit  of and be  enforceable  by  your  personal  or  legal  representatives,
executors,   administrators,   successors,  heirs,  distributees,  devisees  and
legatees.  If you should die following your Date of Termination while any amount
would still be payable to you hereunder if you had  continued to live,  all such
amounts,  unless otherwise provided herein, shall be paid in accordance with the
terms of this Agreement to your devisee,  legatee or other designee or, if there
is no such designee, to your estate.

      5.    NATURE  OF  PAYMENTS.  All   payments  to you under  this  Agreement
shall be considered  severance  payments in consideration of your past service
to the Company.

      6.    VALIDITY.  The  invalidity  or  unenforceability of any provision of
this Agreement  shall not affect the validity or  enforceability  of any other
provision of this Agreement, which shall remain in full force and effect.

      7.    COUNTERPARTS.   This    Agreement   may   be   executed  in  several
counterparts,  each of which  shall be  deemed  to be an  original  but all of
which together will constitute one and the same instrument.

      8.    NOTICE. Any purported  termination of your employment by the Company
or by you following a Change in Control of the Corporation shall be communicated
to the other party by a written Notice of  Termination.  A Notice of Termination
by you shall indicate in reasonable detail the facts and  circumstances  claimed
to provide a basis for a Good  Reason for  Resignation.  For the purpose of this
Agreement,  notices and all other communications  provided for in this Agreement
shall be in writing  and shall be deemed to have been duly given when  delivered
or mailed by United States  registered mail, return receipt  requested,  postage
prepaid,  addressed to the  respective  addresses set forth on the first page of
this  Agreement,  provided  that all notices to the Company shall be directed to
the  attention  of the Board with a copy to the  Secretary  of the Company or to
such other address as either party may have furnished to the other in writing in
accordance herewith,  except that notice of change of address shall be effective
only upon receipt.

      9.   FEES AND EXPENSES.  The Company  shall pay all legal fees and related
expenses  incurred by you as a result of your termination  following a Change in
Control of the  Corporation  or by you in seeking to obtain or enforce any right
or benefit provided by this Agreement (including all fees and expenses,  if any,
incurred in contesting or disputing any such  termination  or incurred by you in
seeking advice in connection therewith).

      10.  MISCELLANEOUS.  No  provision  of  this  Agreement  may  be  amended,
modified,  waived or discharged unless such amendment,  modification,  waiver or
discharge  is agreed to in writing and signed by you and such  officer as may be
specifically  designated  by the Board.  No waiver by either party hereto at any
time of any  breach by the  other  party  hereto  of, or  compliance  with,  any
condition  or  provision  of this  Agreement to be performed by such other party
shall be deemed a waiver of similar or  dissimilar  provisions  or conditions at
the same or at any prior or subsequent  time. No agreements or  representations,

                                       15

<PAGE>

oral or otherwise, express or implied, with respect to the subject matter hereof
have  been  made by  either  party  which  are not  expressly  set forth in this
Agreement.

      11.  CONFLICTING  EMPLOYMENT  AGREEMENTS.  To the extent  that you have or
obtain  after the date hereof a written  employment  agreement  with the Company
which  contains  provisions  that conflict with this  Agreement,  this Agreement
shall govern unless such employment agreement  specifically refers to Section 11
of this  Agreement and states that such  employment  agreement  governs.  To the
extent that such employment  agreement provides for rights or benefits which are
duplicative of those set forth in this Agreement,  you shall be entitled to only
one such right or benefit  (which  shall be the one which,  in your  judgment if
timely  made,  is most  favorable  to you).  To the extent that such  employment
agreement  provides  for rights or benefits  which are  additional  to those set
forth  in this  Agreement,  this  Agreement  shall  not  impair  in any way your
entitlement to those additional rights or benefits.

      12.  GOVERNING  LAW.  The  validity,   interpretation,   construction  and
performance  of this  Agreement  shall be  governed  by the laws of the State of
Delaware (without regard to the choice of laws provisions thereof).  The Company
and you hereby agree to irrevocably  submit to the  jurisdiction of any State or
Federal court sitting in the State of Delaware, and any appellate court thereof,
in any action or proceeding  arising out of or relating to this  Agreement.  The
Company  and you  hereby  irrevocably  agree  that all claims in respect of such
action or  proceeding  shall only be heard and  determined in a State or Federal
court sitting in the State of Delaware.

                                       16
<PAGE>

      If this letter sets forth our  agreement  on the  subject  matter  hereof,
kindly  sign and return to the Company the  enclosed  copy of this letter  which
will then constitute our agreement on this subject.

                                          Sincerely,

                                          UCAR INTERNATIONAL INC.

                                             By:-------------------------------

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

                                          UCAR CARBON COMPANY INC.

                                              By:------------------------------

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

Agreed to as of the date
first above written

-----------------------------------------
Employee

                                       17

<PAGE>

                                                                         Foreign

                              [UCAR LETTERHEAD]

                                                                [DATE]

NAME
LOCATION

Dear                 :
     ----------------

      The Board of  Directors  (the  "Board") of UCAR  International  Inc.  (the
"Corporation")  authorized  your  participation  in the  arrangements  set forth
between UCAR (the "Company") and you in this Severance  Compensation  Agreement.
The  Board  recognizes  that the  possibility  of a  Change  in  Control  of the
Corporation exists, as is the case with many publicly held corporations, and the
uncertainty and questions which it may raise among  management may result in the
departure  or  distraction  of  management  personnel  to the  detriment  of the
Corporation and its stockholders.

      The  Board  has  determined  that  appropriate  steps  should  be taken to
reinforce and encourage the continued attention and dedication of members of the
Company's  management,  including  yourself,  to their  assigned  duties without
distraction in the face of potentially  disturbing  circumstances arising from a
possible  Change in Control of the  Corporation.  The Board has also  determined
that  it is in the  best  interests  of the  Company,  the  Corporation  and the
Corporation's  stockholders to ensure your continued availability to the Company
in the event of a potential Change in Control of the Corporation.

      In order to  induce  you to remain in the  employ  of the  Company  and in
consideration  of your  continued  service to the  Company,  the Company and the
Corporation  agree that you shall  receive the  severance  benefits set forth in
this Severance Compensation Agreement ("Agreement") in the event your employment
with the  Company  is  terminated  subsequent  to a  Change  in  Control  of the
Corporation under the circumstances  described below.  Notwithstanding  anything
contained  herein to the contrary,  the Corporation  shall not be liable for any
severance  payments required to be made to you by the  Corporation's  subsidiary
which employs you under the statutes,  rules,  regulation,  decrees or orders of
the  country in which you are  employed or any other  payments  other than those
specifically provided herein.

      1.  Definitions.

            a.    "CHANGE IN CONTROL  OF THE  CORPORATION"  shall be deemed to
occur if any of the following circumstances shall occur:

<PAGE>

                        (i) any  "person"  or  "group"  within  the  meaning  of
                     Section 13(d) or 14(d)(2) of the Securities Exchange Act of
                     1934 (the  "Act")  becomes the  beneficial  owner of 15% or
                     more of the then outstanding Common Stock or 15% or more of
                     the then outstanding voting securities of the Corporation;

                        (ii) any  "person"  or  "group"  within  the  meaning of
                     Section  13(d) or 14(d)(2) of the Act  acquires by proxy or
                     otherwise  the right to vote on any matter or question with
                     respect to 15% or more of the then outstanding Common Stock
                     or 15% or more of the  combined  voting  power  of the then
                     outstanding voting securities of the Corporation;

                        (iii) Present  Directors and New Directors cease for any
                     reason to  constitute  a majority  of the Board  (and,  for
                     purposes of this clause (iii),  "Present  Directors"  shall
                     mean  individuals  who at the beginning of any  consecutive
                     twenty-four month period were members of the Board and "New
                     Directors"  shall mean  individuals  whose  election by the
                     Board or whose  nomination for election as directors by the
                     Corporation's  stockholders  was  approved  by a vote of at
                     least  two-thirds of the directors  then in office who were
                     Present Directors or New Directors);

                        (iv)  the  stockholders of the  Corporation  approve a
                     plan  of  complete  liquidation  or  dissolution  of  the
                     Corporation; or

                        (v)    consummation    of:    (x)   a    reorganization,
                     restructuring, recapitalization, reincorporation, merger or
                     consolidation of the Corporation (a "Business Combination")
                     unless,  following  such Business  Combination,  (a) all or
                     substantially  all of the individuals and entities who were
                     the  beneficial  owners of the Common  Stock and the voting
                     securities of the Corporation outstanding immediately prior
                     to such Business Combination  beneficially own, directly or
                     indirectly,  more than 50% of the common equity  securities
                     and the combined  voting power of the voting  securities of
                     the  corporation  or  other  entity   resulting  from  such
                     Business   Combination   outstanding  after  such  Business
                     Combination (including,  without limitation,  a corporation
                     or  other  entity  which  as  a  result  of  such  Business
                     Combination  owns the  Corporation or all or  substantially
                     all of the assets of the  Corporation or the Company either
                     directly   or  through   one  or  more   subsidiaries)   in
                     substantially  the  same  proportions  as  their  ownership
                     immediately   prior  to  such   Business   Combination   of
                     outstanding  Common Stock and the combined  voting power of
                     the  outstanding  voting  securities  of  the  Corporation,
                     respectively, (b) no "person" or "group" within the meaning
                     of Section 13(d) or 14(d)(2) of the Act  (excluding (1) any
                     corporation  or other entity  resulting  from such Business
                     Combination  and (2) any employee  benefit plan (or related
                     trust) of the Company or any  corporation  or other  entity
                     resulting from such Business Combination) beneficially owns
                     15% or more of the common equity  securities or 15% or more

                                       2

<PAGE>

                     of the combined  voting power of the voting  securities  of
                     the  corporation  or  other  entity   resulting  from  such
                     Business   Combination   outstanding  after  such  Business
                     Combination,  except to the  extent  that  such  beneficial
                     ownership  existed prior to such Business  Combination with
                     respect to the Common  Stock and the voting  securities  of
                     the Corporation, and (c) at least a majority of the members
                     of the board of directors  (or similar  governing  body) of
                     the  corporation  or  other  entity   resulting  from  such
                     Business  Combination were members of the Board at the time
                     of the  execution of the initial  agreement  providing  for
                     such Business  Combination  or at the time of the action of
                     the Board approving such Business Combination, whichever is
                     earlier; or (y) any sale, lease, exchange or other transfer
                     (in one transaction or a series of related transactions) of
                     all or  substantially  all of the assets of the Corporation
                     or the Company, whether held directly or indirectly through
                     one or more subsidiaries  (excluding any pledge,  mortgage,
                     grant  of  security  interest,  sale-leaseback  or  similar
                     transaction, but including any foreclosure sale), provided,
                     that, for purposes of clauses (v)(x) and (v)(y) above,  the
                     divestiture of less than substantially all of the assets of
                     the  Corporation  or the  Company in one  transaction  or a
                     series of related  transactions,  whether effected by sale,
                     lease,  exchange,  spin-off,  sale of stock of or merger or
                     consolidation of a subsidiary, transfer or otherwise, shall
                     not constitute a Change in Control of the Corporation.

Notwithstanding the foregoing,  (A) a Change in Control of the Corporation shall
not be deemed to occur:

      (I)  pursuant to clause (i) or (ii) above,  solely  because 15% or more of
the then outstanding  Common Stock or the then outstanding  voting securities of
the  Corporation is or becomes  beneficially  owned or is directly or indirectly
held or  acquired by one or more  employee  benefit  plans (or  related  trusts)
maintained by the Company; or

      (II) pursuant to clause (v)(y) above, (1) if the Board determines that any
sale,  lease,  exchange or other transfer does not involve all or  substantially
all of the  assets of the  Corporation  or the  Company  or (2) unless the Board
determines  otherwise,  solely because of the consummation of a transaction or a
series of transactions  pursuant to which the Company sells,  distributes to the
Corporation's stockholders,  or otherwise transfers or disposes of any or all of
its  ownership of its natural,  acid-treated  and  flexible  graphite  business,
however owned (including  ownership  through one or more dedicated  subsidiaries
and holding companies therefor and successors thereto); and

      (B) to the extent that a "person" or "group" within the meaning of Section
13(d)  or  14(d)(2)  of the Act is the  beneficial  owner  of 15% or more of the
Common Stock or the voting  securities of the  Corporation on May 9, 2000,  then
the references  therein to 15% shall be deemed to be references to 22.5% as (but
only as) to such "person" or "group."

                                       3

<PAGE>

For purposes of this Agreement, references to "beneficial owner" and correlative
phrases shall have the same  definition as set forth in Rule 13d-3 under the Act
(except  that  ownership  by  underwriters  for  purposes of a  distribution  or
offering  shall not be deemed to be "beneficial  ownership"),  references to the
Act or rules and  regulations  thereunder  shall  mean those in effect on May 9,
2000 and  references  to  "Common  Stock"  shall  mean the  common  stock of the
Corporation.

            b.       "DATE OF TERMINATION" shall mean:

            (i)      in case  employment is terminated  for  Disability,  thirty
                     (30) days after Notice of  Termination  is given  (provided
                     that  you  shall  not  have   returned  to  the   full-time
                     performance  of your  duties  during  such  thirty (30) day
                     period), and

            (ii)     in all other  cases,  the date  specified  in the Notice of
                     Termination  (which  shall not be less than thirty (30) nor
                     more than sixty (60) days, respectively, from the date such
                     Notice of Termination is given).

            c.       "DISABILITY" shall mean total physical or mental disability
rendering you unable to perform the duties of your  employment  for a continuous
period of six (6) months.  Any question as to the  existence of your  Disability
upon which you and the Company  cannot agree shall be  determined by a qualified
physician  (not employed by the Company)  selected by you (or, if you are unable
to make such selection,  made by any adult member of your immediate  family) and
approved by the Company.  The determination of such physician made in writing to
the Company and to you shall be final and  conclusive  for all  purposes of this
Agreement.

            d.       "GOOD REASON FOR  RESIGNATION"  shall mean the occurrence
of any of the following:

            (i)      (A) a change in your status or position  with the  Company,
                     which in your  reasonable  judgment  does not  represent  a
                     status or  position  comparable  to your status or position
                     immediately prior to a Change in Control of the Corporation
                     or a promotion  from your  status or  position  immediately
                     prior to a Change in Control of the Corporation; or

                     (B)  a   reduction   in  the   level   of  your   reporting
                     responsibility as it existed  immediately prior to a Change
                     in Control of the Corporation; or

                     (C) the assignment to you of any duties or responsibilities
                     or diminution of duties or  responsibilities  which in your
                     reasonable  judgment are  inconsistent  with your status or
                     position with the Company in effect  immediately prior to a
                     Change in Control of the Corporation;

                     it being understood that any of the foregoing in connection
                     with a  termination  of  your  employment  for  Retirement,
                     Disability or  Termination  for Cause shall not  constitute
                     Good Reason for Resignation;

                                       4
<PAGE>

            (ii)     a  reduction  by the  Company in the annual  rate of your
                     base  salary as in effect  immediately  prior to the date
                     of a Change in Control of the  Corporation or as the same
                     may be  increased  from time to time  thereafter,  or the
                     Company's  failure to  increase  the annual  rate of your
                     base  salary  for a  calendar  year in an amount at least
                     equal to the average  percentage  increase in base salary
                     for  all   employees  of  the  Company   with   Severance
                     Compensation  Agreements in the preceding  calendar year.
                     (and the  Company  agrees  that,  within  three  (3) days
                     after your  request,  the Company shall notify you of the
                     average  percentage  increase in base salary for all such
                     employees in the calendar year preceding your request);

            (iii)    the  failure  by the  Company to  continue  in effect any
                     compensation  plan in which you  participate as in effect
                     immediately   prior  to  a  Change  in   Control  of  the
                     Corporation,  including  but not  limited to any  Company
                     retirement  plan,  any  of  the  Incentive   Compensation
                     Plans, or any substitute  plans adopted prior to a Change
                     in  Control  of the  Corporation,  unless an  arrangement
                     satisfactory  to you  (embodied in an ongoing  substitute
                     or  alternative  plan) has been made with respect to such
                     plan,  or the  failure by the  Company to  continue  your
                     participation  therein on at least as  favorable a basis,
                     both in terms of the amount of benefits  provided and the
                     level   of   your   participation   relative   to   other
                     participants,  as existed  immediately  prior to a Change
                     in Control of the Corporation;

            (iv)     the  Company  requiring  you  to  be  based  outside  of  a
                     thirty-five  (35) mile  radius  from where  your  office is
                     located  immediately  prior to a Change in  Control  of the
                     Corporation  except for  required  travel on the  Company's
                     business to an extent  substantially  consistent  with your
                     business travel  obligations  immediately prior to a Change
                     in Control of the Corporation;

            (v)      the  failure by the  Company to  continue  to provide you
                     with  benefits at least as favorable as those  enjoyed by
                     you (and your  dependents,  if  applicable)  under any of
                     the Company's  pre-retirement  and  post-retirement  life
                     insurance,  medical,  health and accident, and disability
                     plans  or  any  other  plan,  program  or  policy  of the
                     Company  intended to benefit  employees  in which you (or
                     your dependents) were participating  immediately prior to
                     a Change in  Control  of the  Corporation,  the taking of
                     any  action  by  the  Company  which  would  directly  or
                     indirectly  materially  reduce  any of such  benefits  or
                     deprive you (or your  dependents) of any material  fringe
                     benefit enjoyed by you (or your  dependents)  immediately
                     prior to a Change in Control of the  Corporation,  or the
                     failure by the  Company to provide you with the number of
                     annual  paid  vacation  days to which  you were  annually
                     entitled  immediately prior to a Change in Control of the
                     Corporation;

                                       5

<PAGE>

            (vi)     the  failure  of  the  Company  to  obtain  a  satisfactory
                     agreement  from any  Successor  (as defined in Paragraph 4a
                     hereof) to assume and agree to perform this  Agreement,  as
                     contemplated in Paragraph 4a hereof; or

            (vii)    the  failure  of the  Company  to  pay to you an  Incentive
                     Compensation   Award,   deferred   compensation   or  other
                     compensation  award earned, but not paid, prior to a Change
                     in Control of the Corporation.

            e.       "INCENTIVE     COMPENSATION"   means    any   compensation,
variable  compensation,  bonus, benefit or award paid or payable in cash under
an Incentive Compensation Plan.

            f.       "INCENTIVE  COMPENSATION  AWARD" shall  mean a cash payment
or payments awarded to you under any Incentive Compensation Plan.

            g.       "INCENTIVE  COMPENSATION  PLAN(S)" shall  mean any variable
compensation  or  incentive  compensation  plan  maintained  by the Company in
which you were a participant  immediately  prior to a Change in Control of the
Corporation  including,  but not limited to UCAR International Inc. Management
Incentive Plan.

            h.       "NOTICE OF   TERMINATION"  shall  mean a written  notice as
provided in Paragraph 8 hereof.

            i.       "RETIREMENT"  shall   mean   a  voluntary   termination  of
employment  in accordance  with any Company  retirement  plan or any  retirement
arrangement which is established with your consent with respect to you.

            j.       "TERMINATION  FOR  CAUSE"  shall  mean  termination of your
employment upon your willfully  engaging in conduct  demonstrably and materially
injurious to the Company,  monetarily  or  otherwise,  provided that there shall
have been delivered to you a copy of a resolution  duly adopted by the unanimous
affirmative vote of the entire membership of the Board at a meeting of the Board
called  and  held  for  such  purpose  (after  reasonable  notice  to you and an
opportunity for you, together with your counsel,  to be heard before the Board),
finding  that in the good  faith  opinion  of the Board  you were  guilty of the
conduct set forth and specifying the particulars thereof in detail.

For  purposes  of this clause (j), no act, or failure to act, on your part shall
be deemed  "willful" unless done, or omitted to be done, by you in bad faith and
without  reasonable belief that your action or omission was in the best interest
of the Company. Any act or failure to act based upon authority given pursuant to
a  resolution  duly adopted by the Board or based upon the advice of counsel for
the Company shall be  conclusively  presumed to be done or omitted to be done by
you in good faith and in the best interests of the Company.

            k.       "VARIABLE  COMPENSATION YEAR" means a calendar year of an
Incentive Compensation Plan.

                                       6

<PAGE>

      2.    COMPENSATION  UPON  TERMINATION  OR WHILE  DISABLED.  Following  a
Change in Control of the  Corporation,  you shall be entitled to the following
benefits:

            a.  TERMINATION  OTHER THAN FOR  RETIREMENT,  DEATH,  DISABILITY  OR
TERMINATION  FOR CAUSE;  TERMINATION  BY YOUR  RESIGNATION  WITH GOOD REASON FOR
RESIGNATION. If your employment by the Company shall be terminated subsequent to
a Change in Control of the Corporation and during the term of this Agreement (a)
by the Company other than for Retirement,  Death,  Disability or Termination for
Cause, or (b) by you for Good Reason for Resignation, then you shall be entitled
to the benefits provided below,  without regard to any contrary provision of any
plan:

            (i)      ACCRUED  SALARY.  The  Company   shall  pay you,  not later
                     than  the  fifth  day  following  the Date of  Termination,
                     your base  salary  and  vacation  pay  accrued  through the
                     Date  of  Termination  (including  any banked  vacation and
                     any  vested  vacation for  the  calendar  year in which the
                     Date  of  Termination  occurs) at the rate in effect at the
                     time  the  Notice of  Termination  is given (or at the rate
                     in  effect  immediately  prior to  a Change in  Control  of
                     the Corporation, if such rate was higher).

            (ii)     ACCRUED INCENTIVE COMPENSATION.  The Company shall pay you,
                     not later  than  thirty  (30) days  following  your Date of
                     Termination,   the   amount  of  your   accrued   Incentive
                     Compensation which shall be determined as follows:

                     (A) If the  Date  of  Termination  is  after  the  end of a
                     Variable    Compensation   Year,   but   before   Incentive
                     Compensation for said Variable  Compensation  Year has been
                     paid, the Company shall pay to you under this Agreement for
                     your service  during such  Variable  Compensation  Year the
                     following:

                        The amount of your target variable  compensation payment
                        (i.e.,  the  percent of your  salary  grade  midpoint at
                        risk) for such Variable Compensation Year.

                     (B) In addition,  if the Date of  Termination is other than
                     the first day of a Variable  Compensation Year, the Company
                     shall  pay to you under  this  Agreement  for your  service
                     during such  Variable  Compensation  Year up to the Date of
                     Termination, the following:

                        The amount of your target variable  compensation payment
                        (i.e.,  the  percent of your  salary  grade  midpoint at
                        risk) for such  Variable  Compensation  Year (or if such
                        target  has  not  then  been  established,  your  target
                        variable   compensation   award   for  the   immediately
                        preceding Variable  Compensation Year),  multiplied by a
                        fraction,  the numerator of which is the total number of
                        days  which  have   elapsed  in  the  current   Variable

                                       7

<PAGE>

                        Compensation  Year to the Date of  Termination,  and the
                        denominator of which is three hundred sixty-five (365).

                     If there is more than one Incentive Compensation Plan, your
                     accrued   Incentive   Compensation   under  each  Incentive
                     Compensation  Plan shall be determined  separately for each
                     such Plan.

                     For the purpose this Paragraph  2a(ii),  the amount of your
                     target variable compensation payment shall be used, whether
                     or not such Incentive Compensation was actually paid to you
                     or was  includible  in your  gross  income  for  income tax
                     purposes.

            (iii)    SEVERANCE  PAYMENT.  The  Company  shall pay as a severance
                     payment to you, not later than the fifth day  following the
                     Date of  Termination,  a lump sum  severance  payment  (the
                     "Severance Payment") equal to two and ninety-nine hundreths
                     (2.99)  times  the  sum of the  amounts  set  forth  in the
                     following paragraphs (A) and (B):

                     (A) the  greater  of your  annual  base  salary  which  was
                     payable to you by the Company immediately prior to the Date
                     of Termination or your annual base salary which was payable
                     to you by the  Company  immediately  prior to a  Change  in
                     Control of the Corporation; plus

                     (B) the greater of:

                        (I) The  amount  of your  target  variable  compensation
                        payment (i.e., the percent of your salary grade midpoint
                        at risk) for the year in which  the Date of  Termination
                        occurs (or if such target has not then been established,
                        your  target   variable   compensation   award  for  the
                        immediately preceding Variable Compensation Year); or

                        (II) The  amount of your  target  variable  compensation
                        payment (i.e., the percent of your salary grade midpoint
                        at risk) for the year in which the  Change in Control of
                        the  Corporation  occurs (or if such target has not then
                        been  established,  your  target  variable  compensation
                        award   for   the   immediately    preceding    Variable
                        Compensation Year).

                     For purposes of calculations under this subparagraph (iii),
                     the amounts of base salary and target variable compensation
                     payments shall be the amounts  calculated without regard to
                     whether or not such amounts were paid or includible in your
                     gross income for income tax purposes.

            (iv)     REDUCTION IN SEVERANCE  PAYMENT.  The  Severance  Payment
                     shall be reduced  but not below zero by the amount of any
                     other payment or the value of any benefit  received or to
                     be received by you upon your  termination  of  employment
                     with the Company  (whether  payable pursuant to the terms

                                       8

<PAGE>

                     of  this   Agreement,   any  other  plan,   agreement  or
                     arrangement  with  the  Company  or an  affiliate  or any
                     severance  benefits  required  to be paid by the  Company
                     pursuant  to the laws of the  country  in  which  you are
                     employed),  unless you shall have effectively waived your
                     receipt or enjoyment of such payment or benefit  prior to
                     the date of payment of the Severance Payment.

            (v)      NO  DUTY  TO  MITIGATE.  You  shall  not be  required  to
                     mitigate  the amount of any payment  provided for in this
                     Paragraph 2 by seeking  other  employment  or  otherwise,
                     nor shall the amount of any payment or benefit  hereunder
                     be  reduced  by  any  compensation  earned  by you as the
                     result  of   employment   by  another   employer   or  by
                     retirement  benefits  after the Date of  Termination,  or
                     otherwise.

            b.  PAYMENTS WHILE  DISABLED. During any period prior to the Date of
Termination and during the term of this Agreement that you are unable to perform
your full-time  duties with the Company,  whether as a result of your Disability
or as a  result  of a  physical  or  mental  disability  that is not  total  and
therefore is not a Disability, you shall continue to receive your base salary at
the rate in effect at the  commencement  of any such period,  together  with all
other compensation and benefits that are payable or provided under the Company's
benefit plans, including its disability plans. After the Date of Termination for
Disability,  your benefits shall be determined in accordance with any retirement
plan,  insurance and other applicable programs of the Company.  The compensation
and  benefits,   other  than  salary,  payable  or  provided  pursuant  to  this
subparagraph  b shall be the  greater  of (x) the  amounts  computed  under  any
retirement  plan,  disability  benefit  plans,  insurance  and other  applicable
programs in effect  immediately  prior to a Change in Control of the Corporation
and (y) the amounts  computed  under any  retirement  plan,  disability  benefit
plans,  insurance  and  other  applicable  programs  in  effect  at the time the
compensation and benefits are paid.

            c.  PAYMENTS  IF  TERMINATED  FOR CAUSE, OR TERMINATION BY YOU OTHER
THAN WITH GOOD REASON FOR RESIGNATION. If your employment shall be terminated by
the Company as a Termination for Cause or by you other than with Good Reason for
Resignation,  the  Company  shall  pay you your  full base  salary  and  accrued
vacation pay  (including  any banked  vacation  and any vested  vacation for the
calendar  year in which  the Date of  Termination  occurs)  through  the Date of
Termination,  at the rate in effect at the time Notice of  Termination is given,
plus any benefits or awards  which have been earned or become  payable but which
have not yet been paid to you.  You shall  receive  any  payment  due under this
subparagraph c on your Date of Termination.  Thereafter,  the Company shall have
no further obligation to you under this Agreement.

            d.  AFTER  RETIREMENT  OR  DEATH.  If  your  employment  shall  be
terminated by your Retirement,  or by reason of your death,  your benefits shall
be determined in accordance with the Company's retirement and insurance programs
then in effect.

      3.        TERM OF AGREEMENT. This  Agreement  shall  commence  on the date
hereof  and shall  continue  in effect  through  December  31,  2000;  provided,
however,  that commencing on January 1, 2001 and each January 1 thereafter,  the
term of this Agreement shall  automatically  be extended for one additional year

                                       9

<PAGE>

unless,  not later than  September 30 of the preceding  year, the Company or you
shall have given  notice that it or you does not wish to extend this  Agreement.
Notwithstanding  any such notice by the  Company  not to extend,  if a Change in
Control  of the  Corporation  shall have  occurred  or been  publicly  reported,
proposed or announced  (regardless  of whether done so by the Company or a third
party)  during the original or any extended  term of this  Agreement,  or within
three months thereafter,  this Agreement shall continue in effect. In any event,
the term of this  Agreement  shall expire on the third (3rd)  anniversary of the
date of a Change in Control of the  Corporation.  This Agreement shall terminate
if your  employment is terminated by you or the Company prior to the  occurrence
of a Change in Control of the Corporation.

      4.    SUCCESSORS; BINDING AGREEMENT.

            a.  SUCCESSORS  OF  THE  COMPANY.  The  Company  will  require   any
Successor  to expressly  assume and agree to perform this  Agreement in the same
manner and to the same extent  that the Company  would be required to perform it
if no such  succession  had taken  place.  Failure of the Company to obtain such
assent  at least  five  business  days  prior to the  time a  person  becomes  a
Successor  (or where  the  Company  does not have at least  five  business  days
advance notice that a person may become a Successor,  within three business days
after having notice that such person may become or has become a Successor) shall
constitute Good Reason for Resignation by you and, if a Change in Control of the
Corporation has occurred or thereafter occurs,  shall entitle you immediately to
the benefits provided in Paragraph 2a hereof upon delivery by you of a Notice of
Termination.  For purposes of this Agreement,  "Successor" shall mean any person
that obtains or succeeds  to, or has the  practical  ability to control  (either
immediately or with the passage of time), the Company's  business  directly,  by
merger or consolidation,  or indirectly, by purchase of voting securities of the
Company by  acquisition  of rights to vote voting  securities  of the Company or
otherwise,  including  but not limited to any person or group that  acquires the
beneficial ownership or voting rights described in Paragraph 1a(i) or (ii).

            b.  YOUR SUCCESSOR. This Agreement shall inure to the benefit of and
be   enforceable   by  your  personal  or  legal   representatives,   executors,
administrators,  successors, heirs, distributees,  devisees and legatees. If you
should die following  your Date of  Termination  while any amount would still be
payable to you hereunder if you had continued to live, all such amounts,  unless
otherwise  provided  herein,  shall be paid in accordance with the terms of this
Agreement  to your  devisee,  legatee or other  designee or, if there is no such
designee, to your estate.

      5.    NATURE  OF  PAYMENTS.  All  payments  to  you under  this  Agreement
shall be considered  severance  payments in consideration of your past service
to the Company.

      6.    VALIDITY.  The  invalidity  or  unenforceability of any provision of
this  Agreement  shall not affect the  validity or  enforceability  of any other
provision of this Agreement, which shall remain in full force and effect.

      7.    COUNTERPARTS.   This   Agreement   may   be   executed   in  several
counterparts,  each of which  shall be  deemed  to be an  original  but all of
which together will constitute one and the same instrument.

                                       10

<PAGE>

      8.    NOTICE. Any purported  termination of your employment by the Company
or by you following a Change in Control of the Corporation shall be communicated
to the other party by a written Notice of  Termination.  A Notice of Termination
by you shall indicate in reasonable detail the facts and  circumstances  claimed
to provide a basis for a Good  Reason for  Resignation.  For the purpose of this
Agreement,  notices and all other communications  provided for in this Agreement
shall be in writing  and shall be deemed to have been duly given when  delivered
or mailed by United States  registered mail, return receipt  requested,  postage
prepaid,  addressed to the  respective  addresses set forth on the first page of
this  Agreement,  provided  that all notices to the Company shall be directed to
the  attention  of the Board with a copy to the  Secretary  of the Company or to
such other address as either party may have furnished to the other in writing in
accordance herewith,  except that notice of change of address shall be effective
only upon receipt.

      9.    FEES AND EXPENSES.  The Company shall pay all legal fees and related
expenses  incurred by you as a result of your termination  following a Change in
Control of the  Corporation  or by you in seeking to obtain or enforce any right
or benefit provided by this Agreement (including all fees and expenses,  if any,
incurred in contesting or disputing any such  termination  or incurred by you in
seeking advice in connection therewith).

      10.   MISCELLANEOUS.  No provision  of  this  Agreement  may  be  amended,
modified,  waived or discharged unless such amendment,  modification,  waiver or
discharge  is agreed to in writing and signed by you and such  officer as may be
specifically  designated  by the Board.  No waiver by either party hereto at any
time of any  breach by the  other  party  hereto  of, or  compliance  with,  any
condition  or  provision  of this  Agreement to be performed by such other party
shall be deemed a waiver of similar or  dissimilar  provisions  or conditions at
the same or at any prior or subsequent  time. No agreements or  representations,
oral or otherwise, express or implied, with respect to the subject matter hereof
have  been  made by  either  party  which  are not  expressly  set forth in this
Agreement.

      11.  CONFLICTING  EMPLOYMENT  AGREEMENTS.  To the extent  that you have or
obtain  after the date hereof a written  employment  agreement  with the Company
which  contains  provisions  that conflict with this  Agreement,  this Agreement
shall govern unless such employment agreement  specifically refers to Section 11
of this  Agreement and states that such  employment  agreement  governs.  To the
extent that such employment  agreement provides for rights or benefits which are
duplicative of those set forth in this Agreement,  you shall be entitled to only
one such right or benefit  (which  shall be the one which,  in your  judgment if
timely  made,  is most  favorable  to you).  To the extent that such  employment
agreement  provides  for rights or benefits  which are  additional  to those set
forth  in this  Agreement,  this  Agreement  shall  not  impair  in any way your
entitlement to those additional rights or benefits.

      12.  GOVERNING  LAW.  The  validity,   interpretation,   construction  and
performance  of this  Agreement  shall be  governed  by the laws of the State of
Delaware (without regard to the choice of laws provisions thereof).  The Company
and you hereby agree to irrevocably  submit to the  jurisdiction of any State or
Federal court sitting in the State of Delaware, and any appellate court thereof,
in any action or proceeding  arising out of or relating to this  Agreement.  The
Company  and you  hereby  irrevocably  agree  that all claims in respect of such
action or  proceeding  shall only be heard and  determined in a State or Federal
court sitting in the State of Delaware.

                                       11

<PAGE>

      If this letter sets forth our  agreement  on the  subject  matter  hereof,
kindly  sign and return to the Company the  enclosed  copy of this letter  which
will then constitute our agreement on this subject.

                                   Sincerely,

                                   UCAR INTERNATIONAL INC.

                                          By:---------------------------------

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

                                    COMPANY NAME

                                          By:---------------------------------

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

Agreed to as of the date
first above written

-------------------------------------
      Name

                                       12<PAGE>

                                                                   Exhibit 10.41

                                   UCAR CARBON

                            BENEFITS PROTECTION TRUST

                  Amended and Restated as of November 20, 2000

<PAGE>

                                   UCAR CARBON

                       BENEFITS PROTECTION TRUST AGREEMENT

                  THIS  AGREEMENT,  made as of 20th day of November 2000, by and
between UCAR CARBON COMPANY INC., a corporation organized and existing under the
laws of the State of Delaware  (hereinafter  referred to as the "Company"),  and
MELLON BANK, N A., a national banking  association,  organized under the laws of
the United States (hereinafter referred to as the "Trustee"),

                               W I T N E S S E T H

                  WHEREAS,  the  Company  has  adopted  the  plans,   employment
agreements  and  severance   compensation   agreements   listed  on  Schedule  1
(hereinafter  referred  to as  defined  in  Schedule  1 or  collectively  as the
"Plans") and may adopt or enter into other such Plans and  agreements as will be
listed from time to time on Schedule 1 and may, from time to time, amend, modify
or terminate any such Plan in accordance with its terms; and

                  WHEREAS,  the Company has previously  established the Benefits
Protection  Trust  (hereinafter  referred to as the  "Trust") in order to ensure
that its employees and their  beneficiaries  will receive the benefits which the
Company is  obligated  to provide for them or which they  reasonably  anticipate
receiving pursuant to the Plans; and

                  WHEREAS,  the Trust is intended  to be a "grantor  trust" with
the corpus and income of the Trust  treated as assets and income of the  Company
for federal  income tax  purposes  pursuant  to Sections  671 through 678 of the
Internal Revenue Code of 1986 (the "Code"), as amended; and

                  WHEREAS, the Company intends that the assets of the Trust will
be subject to the claims of  creditors  of the  Company as  provided  in Article
EIGHTEENTH; and

                  WHEREAS,  the Company  intends that the existence of the Trust
will not alter the  characterization  of the Plans as "unfunded" and will not be
construed to provide taxable income to any participation  under the Plans or the
Agreements prior to actual payment of benefits thereunder; and

                  WHEREAS, the Company wishes the amend  and restate  the Trust;
and
                  WHEREAS, the Company wishes to  name  Mellon  Bank,  N. A.; as
successor Trustee; and
                  WHEREAS, the Trustee is not a party to the Plans and  makes no
representations with respect thereto, and all representations and recitals  with
respect to the Plans shall be deemed to be those of the Company;

                  NOW, THEREFORE, the Company and the Trustee agree as follows:

         FIRST:  Definitions

                   (a) Any term that is  referenced  in the Plans  shall have in
this Agreement the same meaning ascribed to it in the Plans,  unless the context
clearly indicates a different meaning.

                   (b) "Accounts" shall mean,  collectively,  the  Non-Qualified
Plans Account,  the Severance Account, the Employment Agreement Account, the TCN
Account,  the  Benefits  Protection  Account  and such other  Account(s)  as may
subsequently be established under Article SECOND.
<PAGE>

                   (c) "Administrative  Committee" shall mean the Administrative
Committee of the Benefits  Protection  Trust  empowered to administer  the Trust
after a Change in Control, as described in Article TENTH.

                   (d)     "Agreements" shall mean the Employment  Agreement and
                            ----------
the Severance Compensation Agreements, collectively.
                   (e)     "Authorized Person"  shall  mean  an  employee of the
                            -----------------
Company or member of the Non-Qualified Plans Committee or

the  Administrative  Committee who is authorized to execute and deliver,  in the
and  on  behalf  of  the  Company,  the  Non-Qualified  Plans  Committee  or the
Administrative  Committee,  documents  or  instructions  relating  to the Trust.
Coincident  with the  execution  of the Trust,  the  Company  shall  provide the
Trustee with a list of the members of the Non-Qualified Plans Committee, and all
other  Authorized  Persons,   and  concurrently  with  the  appointment  of  the
Administrative  Committee,  the Company shall provide the Trustee with a list of
the members thereof. The Trustee shall be entitled to rely on such list.

                   (f)     "Beneficiary" shall mean  the  beneficiary designated
                            -----------
by a Participant under one or more of the Plans or Agreements.
                   (g)     A "Change in Control" shall be deemed to occur if any
                              -----------------
of the following circumstances shall occur:

                           (A)(1)   any "person" or "group" within  the  meaning
of Section 13(d) or 4(d)(2) of the Securities Exchange Act of 1934  (the  "Act")
becomes  the beneficial  owner of  15% or more of  the then  outstanding  Common
Stock   or  15%  or  more  of the  then  outstanding  voting  securities of  the
Corporation;

                           (2)      any "person" or "group" within  the  meaning
of Section 13(d) or 14(d)(2) of the Act acquires by proxy or otherwise the right
to  vote  on  any  matter  or  question  with respect to 15% or more of the then
outstanding Common Stock or 15% or more of the combined voting power of the then
outstanding voting securities of the Corporation;

                           (3)      Present Directors  and New  Directors  cease
for any reason to constitute a majority of the Board (and, for purposes of  this
clause  (3),  "Present   Directors" shall mean individuals  who at the beginning
of any   consecutive  twenty-four   month period were  members  of the Board and
"New  Directors"  shall mean  individuals  whose election  by the Board or whose
nomination  for  election as  directors  by the Corporation's  stockholders  was
approved by a vote of at least two-thirds of  the  directors then in office  who
were Present Directors or New Directors);

                           (4)      the stockholders of the  Corporation approve
a plan of complete liquidation or dissolution of the Corporation; or

                           (5)      consummation of:
                                    (i)     a reorganization, restructuring,
         recapitalization,  reincorporation,  merger  or  consolidation  of  the
         Corporation (a "Business  Combination") unless, following such Business
         Combination,  (X)  all or  substantially  all of  the  individuals  and
         entities  who were  the  beneficial  owners of the Common Stock and the
         voting securities of the Corporation outstanding immediately  prior  to
         such   Business  Combination  beneficially own, directly or indirectly,
         more than 50 % of the common equity securities and  the combined voting
         power  of  the  voting  securities  of  the corporation or other entity
         resulting  from  such  Business  Combination  outstanding  after   such
         Business  Combination  (including, without  limitation,  a  corporation
         or other  entity which as a result of  such Business  Combination  owns
         the   Corporation  or all  or   substantially  all of the assets of the
         Corporation  or  the   Company  either  directly or through one or more
         subsidiaries) in substantially the same proportions  as their ownership
         immediately prior to such Business  Combination, of  outstanding Common
         Stock  and  the  combined  voting  power  of    the  outstanding voting

                                      -2-
<PAGE>

         securities of the Corporation, respectively, (Y) no "person" or "group"
         within the meaning of Section 13(d) or 14(d)(2) of  the Act  (excluding
         (a)  any  corporation  or other entity  resulting from    such Business
         Combination and (b) any employee benefit plan (or related trust) of the
         Company or any corporation or other entity resulting from such Business
         Combination)  beneficially  owns  15% or  more  of  the common   equity
         securities  or 15% or more of the combined  voting power of the  voting
         securities  of   the    corporation  or  other  entity  resulting  from
         such Business Combination  outstanding after such Business Combination,
         except to the extent that such  beneficial  ownership  existed prior to
         such  Business  Combination  with  respect to the Common  Stock and the
         voting  securities of the  Corporation,  and (Z) at least a majority of
         the members of the board of directors  (or similar  governing  body) of
         the   corporation   or  other  entity   resulting  from  such  Business
         Combination  were members of the Board at the time of the  execution of
         the initial agreement providing for such Business Combination or at the
         time of the action of the Board  approving  such Business  Combination,
         whichever is earlier; or

                                    (ii)    any sale, lease, exchange  or  other
         transfer (in  one  transaction or  a  series  of  related transactions)
         of  all  or  substantially  all  of  the   assets  of  the  Corporation
         or the Company, whether held directly or indirectly through one or more
         subsidiaries  (excluding   any pledge,  mortgage,  grant of    security
         interest,  sale-leaseback  or  similar transaction, but including   any
         foreclosure sale),  provided,  that, for purposes of clauses (5)(i) and
         (5)(ii),  the  divestiture  of  less  than  substantially  all  of  the
         assets of the Corporation or the Company in one transaction or a series
         of related  transactions,  whether effected by sale,  lease,  exchange,
         spin-off,  sale of stock of or merger or consolidation of a subsidiary,
         transfer or otherwise,  shall not constitute a Change in Control of the
         Corporation.

                  Notwithstanding  the  foregoing,  a Change in  Control  of the
Corporation  shall not be  deemed  to  occur:

                 (B)(1)  pursuant  to  clause  (A)(5)(i)  or  (A)(S)(ii)  above,
solely  because  15% or more of the then outstanding  Common  Stock  or the then
outstanding  voting  securities  of the Corporation is or  becomes  beneficially
owned  or  is  directly  or indirectly  held or acquired by one or more employee
benefit plans (or related trusts) maintained by the Company; or

                           (2)      pursuant to clause (A)(5)(ii) above, (i) if
the Board determines that any sale, lease, exchange or other  transfer  does not
involve all or substantially all of the assets of the Corporation or the Company
or  (ii)  unless  the  Board  determines  otherwise,   solely  because  of   the
consummation  of a  transaction or a  series of transactions pursuant  to  which
the   Company  sells,   distributes  to   the   Corporation's  stockholders,  or
otherwise transfers or disposes of any or all of its ownership  of  its natural,
acid-treated  and  flexible   graphite   business,   however   owned  (including
ownership  through one or  more  dedicated  subsidiaries  and holding  companies
therefor and successors thereto); and

                           (C)      to the extent  that a  "person"  or  "group"
within  the  meaning  of Section 13(d) or 14(d)(2) of the Act is the  beneficial
owner of  15%  or more of the  Common  Stock or the  voting  securities  of  the
Corporation on May 9, 2000, then the references  therein to 15% shall be  deemed
to  be  references  to  22.5%  as (but only as) to such "person" or "group." For
purposes of this  Agreement,  references to "beneficial  owner" and  correlative
phrases  shall have the same definition of as set forth in Rule 13d-3 under  the
Act  (except  that  ownership  by  underwriters for  purposes  of a distribution
or  offering  shall not be deemed to be  "beneficial  ownership"), references to
the Act of rules and  regulations  thereunder  shall mean those in effect on May
9, 2000 and  references  to "Common  Stock"  shall mean the common stock of  the
Corporation.

                                      -3-
<PAGE>

                           The Company shall notify the Administrative Committee
and  the  Trustee  in  writing  of  the  occurrence  of any event  described  in
subparagraphs  (A)(1)  through  (A)(5)  above,  as soon as practicable  after
the Company  first learns of such event.  The  Administrative Committee  and the
Trustee  may rely  upon  such  notice  from the  Company  in performing  any  of
their  obligations or taking  any  discretionary  action  under this   Agreement
which  is dependent  upon  a  Change  in   Control  having  occurred;  provided,
however,  that in the  absence  of such  notice,  the  Administrative  Committee
and the Trustee may  rely  on  their  own  determination,  including opinion of
counsel (who may be counsel to the Company, the Administrative Committee or the
Trustee), that a Change in Control has occurred, unless such a determination
arises out of the  Administrative  Committee's or the Trustee's gross negligence
or willful  misconduct.  The Trustee shall have no independent duty to determine
whether a Change in Control has occurred,  and may rely on the notification,  or
absence of notification by the Company or Administrative  Committee. The Trustee
and the  Administrative  Committee  may also  request  that the Company  furnish
evidence to determine or to enable the Trustee and the Administrative  Committee
to  determine,  whether a Change in Control has  occurred.  The Trustee's or the
Administrative  Committee's  determination  whether  a  Change  in  Control  has
occurred shall be binding and conclusive on all Participants.

                           (h)      "Contract"  shall  mean a  participating  or
                                     --------
nonparticipating  insurance  and/or  annuity  contract  as  described in Article
SEVENTH.
                           (i)      "EBP"   shall   mean   the    UCAR    Carbon
                                     ---
Equalization Benefit Plan, as it may be amended From time to time.
                           (j)      "Employment Agreement"   shall   mean   that
                                     --------------------
certain Employment Agreement between G. E. Playford and the Company as it may be
amended from time to time.
                           (k)      "ERIP" shall  mean  the UCAR Carbon Enhanced
                                     ----
Retirement Income Plan, as it may be amended from time to time.
                           (l)      "Investment Director" shall  mean the person
                                     -------------------
or entity chosen by the Company or the Chief Financial Officer  of  the  Company
prior  to a  Change  in  Control,  or  chosen  by the  Administrative  Committee
after  a  Change  in  Control, to direct the investment of certain assets in the
Trust.
                           (m)      "Investment Manager"    shall    mean     an
                                     ------------------
institution chosen by the Company or the Chief Financial Officer of the  Company
prior  to a  Change  in  Control,  or  chosen  by the  Administrative  Committee
after a Change  in  Control,  to serve as  Investment Director.
                           (n)      "Non-Qualified Plans"     shall        mean,
                                     -------------------
collectively, the EBP, ERIP and SRIP.
                           (o)      "Non-Qualified Plans Committee"  shall  mean
                                     -----------------------------
the  Non-Qualified Plans  Administrative Committee previously established by the
Company  which  is empowered to administer certain provisions of the Trust prior
to a Change in Control.
                           (p)      "Participant" shall  mean  a  participant in
                                     -----------
one or more of the Plans.
                           (q)      "Plans"   shall   mean   those   plans   and
                                     -----
agreements  listed  on  Schedule  1  attached  hereto  or  as hereafter added to
Schedule 1.
                           (r)      "Severance Agreements"   shall   mean    the
                                     --------------------
Severance  Compensation  Agreements between certain individuals and the Company,
as in effect from time to time.
                           (s)      "SRIP"   shall   mean    the    UCAR  Carbon
                                     ----
Supplemental Retirement Income Plan, as it may be amended from time to time.
                           (t)      "TCN Plan" shall mean the UCAR TCN Pension
                                     --------
Plan, as it may be amended from time to time.

                                       -4-
<PAGE>

                           (u)      "Vanguard Trust"  shall   mean   the   trust
                                     --------------
established by the Company with the Vanguard  Fiduciary  Trust  Company  to hold
assets relating  to the  Compensation  Deferral  Account.  The Vanguard Trust is
not a part of this Trust,  but may receive payments under the Benefit Protection
Account as provided in Article THIRD.

         SECOND:  Creation of Trust.
         ------   -----------------
                           (a)      The    Company   hereby establishes with the
Trustee  and  the  Trustee  hereby  accepts  a trust consisting of the following
property  (subject  to  the   rights  of  the  Company to withdraw such property
pursuant to Paragraph (f) of this Article SECOND):

                                    (1)     such   cash   or   other    property
acceptable to the Trustee as shall be paid or delivered to the Trustee from time
to time as  contributions  with  respect to the  Company's obligations under the
Non-Qualified Plans,  together   with   the   earnings,  income,  additions  and
appreciation  thereon and thereto (all of which is  hereinafter called the "Non-
Qualified Plan Account");

                                    (2)     such   cash   or   other    property
acceptable to the Trustee as shall be paid or delivered to the Trustee from time
to time to be used to satisfy  future  liabilities  of the Company  with  regard
to  Severance  Compensation  Agreements  between  certain individuals  and  the
Company,  together with the earnings, income, additions and appreciation thereon
and   thereto  (all of which  is  hereinafter  called  the "Severance Account");
and

                                    (3)     such   cash    or   other   property
acceptable to the Trustee as shall be paid or delivered to the Trustee from time
to time to be used to satisfy  future  liabilities of the Company with regard to
the  Employment  Agreement,  together  with the earnings, income,  additions and
appreciation  thereon   and  thereto  (all of  which  is hereinafter called  the
"Employment Agreement Account"); and

                                    (4)     such   cash   or   other    property
acceptable to the Trustee as shall be paid or delivered to the Trustee from time
to time to be used to satisfy  future  liabilities  of the Company  with  regard
to the TCN  Plan,  together    with   the    earnings,   income,  additions  and
appreciation  thereon and thereto  (all of which is  hereinafter called the "TCN
Plan Account"); and

                                    (5)     such  cash  or an irrevocable letter
of  credit that meets the requirements of Paragraph (b) of this  Article  SECOND
in the amount of two  hundred  fifty thousand dollars ($250,000), together  with
the earnings  thereon,  and realized  and  unrealized gains (net of any  losses)
attributable   thereto   (all  of  which  is  hereinafter called  the  "Benefits
Protection  Account").  Neither   the  cash  nor any  other property held in the
Benefits  Protection Account  shall be  available for  payment  of   benefits to
Participants and Beneficiaries under the Plans.

                           (b)      The  Company may  contribute to the Trust on
behalf of any Account an  irrevocable letter  of credit (hereinafter referred to
as a "L/C").  The following provisions shall be applicable to any such L/C:
                                    (1)     the L/C shall expire no sooner  than
one (1) year from the date of issuance;
                                    (2)     the    Company   shall  continue  to
maintain  such  L/C  in   effect   until   it is replaced by of cash or  another
irrevocable  L/C or the  Company  withdraws  such L/C  pursuant to Paragraph (f)
of this Article  SECOND or this  Agreement  terminates,  whichever occurs first;

                                    (3)     the Company shall  renew or  replace
such L/C  at   least   thirty  (30) days before its expiration for an additional
period of one (1) year;
                                    (4)     if, prior to a  Change  in  Control,
such L/C, or any renewal thereof, is not renewed or replaced by a L/C  delivered
                                       -5-
<PAGE>

to the Trustee at least thirty (30)days before the expiration of the predecessor
L/C, the Trustee may draw down the full amount of such L/C and hold the proceeds
pursuant  to  the  terms  of  this  Agreement  as  directed  by the  Company  or
Non-Qualified   Plans   Committee,   (unless  such L/C is renewed  prior to such
draw down or the  Company  arranges to have an amount of cash contributed to the
Trust in lieu of such L/C);

                                    (5)     prior to a Change  in  Control,  the
Trustee   may   also  draw  down  on such L/C as  directed  by  the  Company  or
Non-Qualified Plans Committee ;
                                    (6)     if, after a Change in Control,  such
L/C, or any renewal thereof, is not renewed or replaced by  a  L/C  delivered to
the Trustee at least thirty (30) days before the expiration  of the  predecessor
L/C, the Trustee  may, at the  direction of the Administrative  Committee,  draw
down the full  amount of such L/C and hold the proceeds pursuant to the terms of
this   Agreement  (unless   such L/C is renewed prior to such  draw  down or the
Company  arranges  to  have an  amount  of cash contributed to the Trust in lieu
of such L/C);

                                    (7)     after   a   Change  in  Control, the
Administrative Committee may also direct the Trustee to draw down on such L/C at
any time the  Administrative  Committee  determines the proceeds of such L/C are
necessary  to  allow  the  Administrative  Committee  to fulfill its obligations
under this Agreement;

                                    (7)     the proceeds of  such  L/C  shall be
available  to  the  Trustee or the Administrative Committee, if applicable, upon
the Trustee's presentation of its sight draft;
                                    (8)     the Company  may,   at   any   time,
replace  such  L/C  with  another  irrevocable  L/C having substantially similar
terms, or with an equal amount of cash, or any combination thereof;
                                    (9)     any L/C shall  be  issued  by a bank
(including the Trustee)  with  assets  in excess of $20 billion and net worth in
excess of $1 billion, shall be reasonably acceptable to the Non-Qualified  Plans
Committee before a Change  in  Control,   or  Administrative Committee   after a
Change  in  Control, and  shall  be in a form as shall  be reasonably acceptable
to the respective Committee.

                           (c)      The Trustee for  investment  purposes  only,
may commingle all Trust assets and treat them as a single fund,  but the records
of  the Trustee at all times shall show the amounts of the  Trust  allocable  to
the   Non-Qualified  Plans  Account,  the   Severance  Account,  the  Employment
Agreement  Account,   the TCN Plan Account, the Benefits Protection  Account and
such other account(s) as may subsequently be established under this Trust.

                           (d)      The assets of the Accounts shall be used  to
discharge the obligations of the Company as follows:
                                    (1)     the assets   of  the   Non-Qualified
Plans Account shall be used to discharge the obligations of the Non-Qualified
Plans;
                                    (2)     the assets of the Severance  Account
shall be used to discharge the severance obligations
of the Company under the Severance Agreements;
                                    (3)     the assets of  Employment  Agreement
Account  shall  be  used  to  discharge the obligations of the Company under the
Employment Agreement;
                                    (4)     the assets of the TCN  Plan  Account
shall be used to discharge the obligations of the Company under the TCN Plan;
                                    (5)     the   assets   of   the     Benefits
Protection  Account may be used as set forth in Paragraph (c) of Article EIGHTH,
and Article NINTH;
                                    (6)     after  a  Change of  Control occurs,
the  assets  of  each Account, upon the termination or expiration of the Plan or
Agreements for which such Account was established, and the  satisfaction of  all
liabilities   with  regard  to  such  terminated  or  expired Plan or Agreements

                                       -6-
<PAGE>

pursuant to Paragraph (d) of Article  SEVENTEENTH,  shall  be  distributed among
such remaining  Account(s) that the  Administrative  Committee determines in its
sole discretion.

                           (e)      The   Trust  created  herein  shall  not  be
revocable  by  the Company, or by any successor thereto prior to the  expiration
of the term of the Trust: (1) prior to a Change in Control, without the approval
of a majority of the Board of Directors of the Company; or (2) after a Change in
Control  until  the   satisfaction  of all  liabilities  under the Plans and the
Agreements.

                           (f)      The  Company may, from time to time, add  to
or  withdraw  from  the  assets  of  the  Trust,  but subject to the termination
provisions  of  Article  SEVENTEENTH  hereof, such withdrawal may not reduce the
property  in  the  Benefits  Protection   Account,  including any L/C, below two
hundred fifty thousand dollars  ($250,000).  The Company may  add funds to   the
Trust at any time and shall  designate  the  Account  to which such funds  shall
be credited.  Any  such  additional  funds  shall   also be available to pay the
fees and expenses of the Trustee and/or the Non-Qualified Plans Committee or the
Administrative  Committee  if the amounts  transferred  pursuant to the Benefits
Protection  Account are exhausted.  Notwithstanding  the foregoing,  the Company
shall not make any withdrawal  from the Trust:  (1) prior to a Change in Control
without the approval of the Non-Qualified Plans Committee; or (2) after a Change
in Control,  until all  liabilities of the Company under the Plans are satisfied
and all of the purposes of this Agreement are fulfilled.

         THIRD:   Vanguard Trust.
         -----    --------------

                           Participants in the Vanguard Trust shall be  afforded
the same rights with respect to payments under the Benefits  Protection  Account
as are provided under this Agreement.   In  all  other  respects,   the Vanguard
Trust   shall   be    separate  from  this Trust and  the Trustee shall have  no
responsibilities or duties with respect to the Vanguard Trust.

         FOURTH:  Payments from the Trust.
         ------   -----------------------
                  (a)  Subject  to  Paragraph  (f)  of  Article  SECOND  hereof,
Paragraph (b) of this Article  FOURTH and  Paragraph (b) of Article  SEVENTEENTH
hereof,  the  Trustee,  from time to time upon  receipt  of  direction  from the
Non-Qualified  Plans  Committee  prior  to a  Change  in  Control,  and from the
Administrative Committee after a Change in Control, shall make payments from the
Trust,  as specified in such  direction to such  persons,  in such manner and in
such  amounts  as  the  Non-Qualified  Plans  Committee  or  the  Administrative
Committee,  as the case may be, shall direct,  and amounts paid pursuant to such
direction (or in accordance with Article  SEVENTH  hereof)  thereafter no longer
shall constitute a part of the Trust.

                  (b) The  Company  may,  from time to time prior to a Change in
Control, furnish the Trustee with certain information regarding the Participants
and  Beneficiaries  under the Plans and the  determination of the benefits under
the Plans (hereinafter referred to as "Participants Data"). The Trustee shall be
entitled to rely on the accuracy of the Participant Data provided by the Company
prior to a Change in  Control,  and shall  have no duty to verify  the  accuracy
thereof.   The  Company   shall,   after  a  Change  in  Control,   furnish  the
Administrative  Committee  and the Trustee with  Participant  Data at least once
each Plan Year. Such Participant Data shall include (1) names, addresses,  dates
of birth, and social security numbers of each Participant and Beneficiary in the
Plans;  (2) the  amount  and form of  benefits  under  each of the Plans of each
Participant and Beneficiary if such Participant would retire or die as of either
the last day of such Plan  Year or the last day of the Plan  Year in which  such

                                       -7-
<PAGE>

Participant  attained  age 62;  (3)  earnings  history,  compensation  (cash and
deferred) and bonus history of each  Participant;  (4) amounts  payable from the
UCAR Carbon Retirement Plan on behalf of each Participant; (5) a schedule of the
estimated  yearly cash payments under the Plans;  and (6) any other  information
regarding the Plan which the Administrative  Committee may reasonably request or
which the Administrative Committee may deem necessary to administer this Trust.

                  Following  a Change in Control and  notwithstanding  any other
provisions of this  Agreement,  the Trustee  shall,  without  direction from the
Company,  to the extent funds are available in the Trust for such purpose,  make
payments to Participants and Beneficiaries in such manner and in such amounts as
the Administrative  Committee shall determine they are entitled to be paid under
the  Plans  based  on  the  most  recent   Participant  Data  furnished  to  the
Administrative  Committee  by  the  Company  and  any  supplemental  information
furnished to the  Administrative  Committee by a Participant or Beneficiary upon
which  the   Administrative   Committee  may  reasonably  rely  in  making  such
determination.  The Administrative Committee may make such reasonable inquiry of
the  Company  as is  necessary  to  determine  whether  any  amounts  that would
otherwise  be payable  under this  Agreement  have  previously  been paid by the
Company, and may reasonably rely on any information provided by the Company with
regard to such payment.  A determination  by the  Administrative  Committee with
regard  to a  Participant's  entitlement  to  payments  under  the terms of this
Agreement shall be binding as to all Participants and the Company.

                  (c) In the event it shall be  determined  prior to a Change in
Control that the Participants  and/or  Beneficiaries of the Plans are subject to
any tax under the terms of the Trust created hereunder,  then the Trustee,  upon
receipt of direction  from the Company,  shall make  payments  from the Trust to
such  persons,  in such manner and in such amounts as the Company  shall direct,
for  purposes  of (1)  paying  the  amount of  Federal,  State and Local tax and
interest and any penalties thereon which such Participants and/or  Beneficiaries
may incur arising out of such determination or (2) distributing the interests of
Participants  and  Beneficiaries in the Trust. In the event such a determination
is made after a Change in Control occurs,  then each  Participant or Beneficiary
who is subject to such tax, may notify the Administrative Committee, in writing,
to direct the Trustee to make payments from the Trust for either of the purposes
set forth in section (1) or (2) of the preceding sentence. The Trustee shall not
make the  payments  for the  purposes  set forth in the first  sentence  of this
Paragraph  (c) without such written  direction  and the Trustee may request such
documentation  as it reasonably  deems  necessary to evidence the amount of such
payments.

                  (d) Payments to  Participants  and  Beneficiaries  pursuant to
Paragraphs  (b) and (c) of this  Article  FOURTH shall be made by the Trustee to
the extent  that Trust  funds for such  purposes  are  sufficient  to allow such
payments.  Subject to Paragraph (d) of Article SECOND, in any month in which the
Administrative Committee directs the Trustee to make payments from the Trust and
the Administrative  Committee  determines that a particular Account in the Trust
does not have  sufficient  funds  to  provide  for the  payment  of all  amounts
otherwise  payable to  Participants  and  Beneficiaries  in such  month  under a
particular  Plan,  the  Administrative   Committee  shall  multiply  the  amount
otherwise payable to each such Participant or Beneficiary under such Plan during
such month by a  fraction,  the  numerator  of which is the amount of funds then
available  for the payment of benefits  under such Plan and the  denominator  of
which is the total of the benefits  payable prior to such reduction  during such
month to all  Participants  and  Beneficiaries  under such Plan,  and direct the
Trustee to make payment of the amounts so calculated.

                                       -8-
<PAGE>

                  (e) After a Change in Control  occurs,  the Company shall make
such  contributions  to the Trust  created  hereunder  as shall be  necessary to
ensure the assets of the Trust shall at all times be sufficient to discharge the
Company's obligations under the Plans.

                  FIFTH:  Investment and Management of Trust Assets. (a) Subject
to Paragraphs  (b) and (c) of this Article  FIFTH,  the Trustee shall invest and
reinvest the assets of the Trust,  without  distinction  between  principal  and
income,  in shares of stock (whether  common or preferred) or other evidences of
ownership, bonds, debentures, notes or other evidences of indebtedness,  secured
or  unsecured,  and other  property,  or part  interest in property,  foreign or
domestic,  whether or not productive of income or consisting of wasting  assets,
and in order to reduce the rate of interest  rate  fluctuations,  contracts,  as
either  buyer or  seller,  for the future  delivery  of United  States  Treasury
securities and comparable Federal-Government-backed  securities. The Trustee may
invest  and  reinvest  any  property  in the Trust in any other  form or type of
investment not  specifically  permitted,  or excluded,  in this Paragraph (a) of
Article  FIFTH,  so long as such form or type of investment is a form or type of
investment approved in writing by the Chief Financial Officer of the Company, or
such other person designated by the Company, for the investment of assets of the
Trust,  and is  approved  by the Trustee in its  capacity  as  custodian,  which
approval shall not be unreasonably withheld.  Notwithstanding the foregoing,  in
no event shall the Trust be invested in real estate  including,  but not limited
to, real property, leaseholds, mineral interests, and any form of asset which is
secured by any of the foregoing,  and provided  further,  that the Trustee shall
not invest or reinvest any of the assets of the Trust in  qualifying  securities
issued by the Company or by an affiliate of the  Company,  except upon  specific
written direction from the Company. In the event that the Trustee is directed to
invest in qualifying  securities  issued by the Company,  the Trustee may retain
any such securities acquired for the Trust at the direction of the Company until
the  Company  directs the Trustee to dispose of them;  but no  direction  of the
Company to sell any  securities  issued by the Company or by an affiliate of the
Company  shall be binding if it would  require  the  Trustee to violate  any law
respecting the public distribution of securities.  The Trustee shall, subject to
the  direction  of the Company or  Administrative  Committee  as set provided in
Paragraphs (b) and (c) of this Article FIFTH, have the following powers:
                                    (1)     To sell, convey,  redeem,  exchange,
grant options for the purchase or  exchange  of, or  otherwise  dispose of,  any
property,  at public or private sale, for cash or upon credit,  with or  without
security,  without obligation on the part of any person dealing with the Trustee
to see to the  application  of the  proceeds of or to inquire into the validity,
expediency or propriety of any such disposition;
                                    (2)     To    exercise,  personally  or   by
general or limited proxy, the right to vote any shares of stock,  bonds or other
securities held in the Trust; to delegate discretionary voting power to trustees
of a voting  trust for any  period  of time;  and to exercise, personally  or by
power  of  attorney,  any  other  right appurtenant to any securities  or  other
property of the Trust;
                                    (3)     To    join   in    or  oppose    any
reorganization,  recapitalitation,  consolidation,  of merger or liquidation, or
any  plan  therefor,  or any  lease,  mortgage  or  sale of   the  property  any
organization the securities of which are held in the   Trust; to  pay  from  the
Trust  any  assessments,  charges  or  compensation   specified  in any plan  of
reorganization,  recapitalization,  consolidation,  merger  or  liquidation;  to
deposit  any  property  with any  committee  or  depositary;  and to retain  any
property  allotted  to  the  Trust  in  any  reorganization,   recapitalization,
consolidation, merger or liquidation;

                                       -9-
<PAGE>

                                    (4)     To exercise or sell  any  conversion
or subscription or other rights appurtenant to any stock, security or other
property held in the Trust;
                                    (5)     To borrow from any lender (including
the Trustee in its individual capacity)   money, in  any  amount  and  upon  any
reasonable  terms and  conditions, for purposes of this Agreement, and to pledge
or mortgage any  property  held in the Trust to secure the repayment of any such
loan;
                                    (6)     To compromise, settle or   arbitrate
any claim, debt, or obligation of or against the Trust;  to  enforce or  abstain
from   enforcing  any  right,  claim,  debt  or obligation; and to  abandon  any
property determined by it to be worthless;
                                    (7)     To collect and  receive  any and all
money and other property due the Trust and give full discharge therefor;
                                    (8)     To   deposit  cash  into    interest
bearing   accounts  in  the  banking department  of the Trustee or an affiliated
banking organization;
                                    (9)     To  purchase,  enter, sell hold, and
generally deal in any manner in and with contracts for the immediate  or  future
delivery of financial  instruments  of any issuer or of any other property;  the
Trustee may also grant, purchase, sell, exercise, permit to expire, permit to be
held in escrow, or otherwise acquire,  dispose of, hold and  generally  deal  in
any  manner  with  and in all  forms of  options  or any combination thereof;
                                    (10)    To commence or defend suits or legal
proceedings to protect any interest of the Trust, and may  represent  the  Trust
in all  suits or  legal  proceedings in any court or before any  other  body  or
tribunal;
                                    (11) To take  all action   necessary  to pay
for  authorized  transactions,  including  borrowing  or raising monies from any
lender, including the Trustee, in its corporate capacity in conjunction with its
duties  under this  Agreement  and upon such terms and conditions as the Trustee
may  deem  advisable  to  settle  security  purchases and/or foreign exchange or
contracts for foreign exchange,  and securing the repayments thereof by pledging
all or any part of the Account;
                                    (12)    To appoint custodians, subcustodians
or subtrustees, domestic or foreign (including affiliates of the Trustee), as to
part or all of the Trust. The Trustee shall not be responsible or liable for any
losses  or damages  suffered  by  the  Company  arising   as  a   result  of the
insolvency  of  any  custodian, subcustodian or subtrustee, except to the extent
to  the  Trustee  was  negligent in its selection or continued retention of such
agent;
                                    (13)    To hold property in nominee name, in
bearer form,  or  in  book  entry form, in a clearinghouse  corporation  or in a
depository  (including  an affiliate of the Trustee), so long as  the  Trustee's
records clearly indicate that the assets  held are  a  part  of  the  Trust. The
Trustee shall not be  responsible  for any losses resulting  from the deposit or
maintenance of securities or other property (in accordance with market practice,
custom,  or  regulation)  with  any  recognized  foreign  or  domestic  clearing
facility,  book-entry  system,  centralized  custodial  depository,  or  similar
organization;
                                    (14)    To credit the Trust with income and
maturity  proceeds on securities on contractual payment  date net of  any  taxes
or upon  actual  receipt n  accordance  with  the Trustee's  standard  operating
procedure,  and to the extent the Trustee credits income on  contractual payment
date,  the  Trustee  may reverse such  accounting  entries  to  the  contractual
payment  date  if  the  Trustee reasonably believes that such amount will not be
received.
                                    (15)    To  attend  to   the  settlement  of
securities  transactions  on  the  basis  of either contractual settlement  date

                                       -10-
<PAGE>

accounting or actual settlement date accounting in accordance with the Trustee's
standard operating  procedure,  and  to  the  extent the Trustee settles certain
securities  transactions on the basis of contractual settlement date accounting,
the Trustee may reverse to the contractual settlement date any entry relating to
such contractual settlement if the Trustee reasonably believes that such  amount
will not be received.
                                    (16)    To effect settlement of transactions
in  trading  and  processing  practices  customary in the jurisdiction or market
where the transaction  occurs.  The  Company   acknowledges  that this  may,  in
certain  circumstances,  require  the  delivery  of cash or securities (or other
property) without the concurrent  receipt of securities (or other  property)  or
cash.  In such  circumstances,  the  Trustee  shall have no  responsibility  for
nonreceipt of payment (or late payment) or  nondelivery  of securities or  other
property (or late delivery) by the counterparty and
                                    (17)    To generally do all acts, whether or
not expressly authorized, which the Trustee may deem necessary or desirable  for
the protection of the Trust.
                           (b)      Prior to a Change  in  Control  the  Company
shall direct the Trustee in the exercise  of  its  investment  powers,  and  the
Trustee  shall have no  discretion  or duties with respect to investment of  any
portion of the Trust Fund. The Company shall retain all  investment   discretion
and may appoint  and remove one or  more  Investment Managers from time to  time
to manage  specified  portions of the Trust Fund, and the Company  shall  manage
any portion of the Trust Fund for which an Investment Manager is not designated.
                                    (1)     The Chief  Financial  Officer of the
Company  shall  designate  in  writing  an  Investment  Director  or  Investment
Directors  for  the   portion  managed  by the Company,  who  are  authorized to
represent the Company in dealing with the Trustee.  Any Investment Director  may
be an employee of the Company or a  subsidiary  or affiliate of the Company,  or
an  Investment  Manager  who  is  not an  employee,  subsidiary  or affiliate of
the  Company.  Any   Investment  Manager  must  be   either  (i)  an  investment
adviser registered as such under the Investment Advisers Act;  or (ii) a   bank,
as defined in that Act;  or (iii) an  insurance  company  qualified  to  perform
services in the management,  acquisition or  disposition  of the assets  of  the
Trust   under  the  laws of more than one State.  The Trustee until  notified in
writing to the  contrary  shall be fully  protected  in relying upon any written
notice of the  appointment  of an  Investment  Director  furnished  to it by the
Company.
                                    (2)     Any  Investment  Director  appointed
pursuant   to  Paragraph  (b)(1)  of  this  Article FIFTH  shall have  exclusive
authority and discretion to manage and control  the  assets of  that  Investment
Director's  Segregated  Investment Account.  Each Investment Director, from time
to time and at any time, may issue orders for the purchase or sale of securities
directly  to  a  broker or dealer,  and for such purpose the Trustee  will  upon
request  execute  and  deliver  to  that Investment Director one or more trading
authorizations.   Written  notification of the issuance of each such order shall
be given promptly to the Trustee by that Investment Director,  and the execution
of  each  such   order   shall  be   confirmed by the  broker to that Investment
Director and to the Trustee. Such notification shall be authority to the Trustee
to  receive   securities   purchased   against  payment  therefor and to deliver
securities sold against receipt of the proceeds  therefrom,  as the case may be.
In the event of any vacancy in the office of  Investment  Director,  the Company
shall  be  deemed  to be the  Investment Director of that  Investment Director's
Segregated Investment Account until an Investment Director shall have  been duly
appointed  to  direct the  Trustee  in the  management  of the   assets  of that
Investment  Director's  Segregated  Investment  Account; and in such event until
an   Investment   Director   shall   have   been   so appointed  and  qualified,
references  herein  to the  Company's  acting  in  respect  of  that  Investment
Director's   Segregated  Investment  Account  pursuant  to  direction  from  the
Investment  Director  shall be deemed to  authorize  the  Company  to direct the

                                      -11-
<PAGE>

Trustee on the investment of the assets of that Investment Director's Segregated
Investment  Account.  Each  Investment  Manager  shall  designate in writing the
persons who are authorized to represent such party in dealing with the Trustee.

                                    (3)     Except as   provided  by  law,   the
Trustee shall have no investment duties with respect to any portion of the Trust
Fund. The Trustee shall have no  duty to inquire  whether investment  directions
received from the Company, an Investment Director, or an Investment  Manager are
in  accordance  with the Plan,  or to review the assets purchased,  retained  or
sold.  The Trustee  shall have no liability by reason of the  Trustee's   taking
or refraining  from taking any action in accordance  with  instructions  from or
absence  of  instructions  from   the  Company,  an Investment  Director,  or an
Investment  Manager pursuant to this Paragraph (b),  including, without limiting
the  generality  of the  foregoing,  any claim or liability that may be asserted
against the Trustee on account of failure to receive  securities  purchased,  or
failure to deliver securities sold,  pursuant to orders issued by an  Investment
Director or Investment Manager directly to a broker or dealer. The Trustee shall
be fully  indemnified  by the Company for any  action taken in accordance  with,
or  any  failure  to  act  in  the  absence  of,  the  Company's, and Investment
Director's or an Investment Manager's directions.

                           (c)      After   a   Change  in  Control  occurs  the
Administrative  Committee  shall have the exclusive authority and  discretion to
manage  and  control  the Trust  assets,  and may appoint one or more Investment
Directors  or Investment Managers,  including an affiliate of the Company or the
Trustee,   to  manage  the  investment  of  the Trust assets.  Pursuant to  such
authority  and  discretion,  the  Administrative  Committee,  or  any Investment
Manager  or  Investment   Director appointed pursuant to this Paragraph (c), may
exercise,  from  time to time and at any time, the powers and discretion of  the
Company  pursuant to  Paragraph  (b) of this  Article  FIFTH,  and to the extent
that the Trustee is not designated as Investment  Manager,  the Trustee's duties
and  liability   with  respect to the Trust Fund after a Change in Control shall
be the same as set forth in Paragraph (b) (3) of this Article FIFTH,

         SIXTH:  Administrative Powers. The Trustee  shall  have and in its sole
         -----   ---------------------
and  absolute  discretion  may  exercise  from  time to time and at any time the
following administrative powers and authority with respect to the Trust:

                           (a)      To hold property of  the  Trust  in  its own
name  or  in the name of a nominee or nominees, without disclosure of the Trust,
or in bearer form so that it will pass by delivery,  or in book entry form, in a
clearinghouse  corporation  or  in  a  depository (including an affiliate of the
Trustee);  provided  that the  Trustee's  books and records  shall at  all times
show that such property is part of the Trust;

                           (b)      To continue to hold any property of the
Trust whether or not productive of income; to reserve from investment and keep
unproductive of income, without liability for interest, cash
temporarily  awaiting  investment and such cash as it deems  advisable or as the
Company  from time to time may specify  prior to a Change in Control in order to
meet the  administrative  expenses  of the  Trust or  anticipated  distributions
therefrom;

                           (c)      To organize and incorporate under the laws
of any state it may deem advisable one or more
corporations  (and to acquire an  interest in any such  corporation  that it may
have organized and  incorporated) for the purpose of acquiring and holding title
to any  property,  interests or rights that the Trustee is authorized to acquire
under Article FIFTH hereof;

                                      -12-
<PAGE>

                           (d)      To employ in the management of the Trust
suitable agents, without liability for any loss occasioned  by any  such  agents
selected by the  Trustee  with the care, skill, prudence and diligence under the
circumstances  then prevailing that a prudent man acting in a like  capacity and
familiar  with such matters  would use in the conduct of an enterprise of a like
character and with like aims;

                           (e)      To make, execute and deliver, as Trustee,
any  deeds,  conveyances,  leases,  mortgages,  contracts,  waivers  or    other
instruments  in writing that the Trustee may deem necessary or desirable in  the
exercise of its powers under this Agreement; and

                           (f)      To  do  all  other acts that the Trustee may
deem necessary or proper to carry out any of the  powers  set  forth in Articles
FIFTH,  SIXTH, and SEVENTH hereof or otherwise in the  best  interests  of   the
Trust.

SEVENTH:  Insurance and Annuity Contracts.
-------   -------------------------------
                           (a)      The Trustee, upon  written  direction of the
Company  prior  to  a  Change  in Control, or from the Administrative  Committee
after a Change in  Control, shall pay from the Trust such sums to such insurance
company  or   companies  for   the   purpose   of   procuring   participating or
nonparticipating  insurance  and/or annuity contracts for the Trust (hereinafter
in Article SEVENTH referred to as "Contracts").  The Company, both  prior to and
after a Change in  Control, shall  prepare, or cause to be prepared in such form
as  it shall prescribe, the application for any Contract to be applied for.  The
Trustee   shall    receive   and   hold in the Trust,  subject to the provisions
hereinafter  set forth in this  Article  SEVENTH,  all  Contracts so obtained.

                           (b)      The   Trustee   shall   be  the complete and
absolute owner of Contracts held in the Trust and, upon written direction of the
Company  prior to a Change in Control, shall have the power, without the consent
of   any   other   person,    to  exercise any and all of the rights, options or
privileges  that  belong to the absolute owner of any Contract held in the Trust
or that are  granted by the terms of any such  Contract  or by the terms of this
Agreement.  Prior to a Change in Control,  the Trustee  shall have no discretion
with respect to the exercise of any of the foregoing powers or to take any other
action  permitted by any  Contract  held in the Trust,  but shall  exercise such
powers or take such action only upon the written  direction of the  Company  and
the  Trustee  shall  have  no duty to exercise any of such powers or to take any
such  action  unless  and  until it  shall  have  received  such direction.  The
Trustee, upon the written direction of the Company prior to a Change in Control,
shall deliver any Contract held in the Trust to such person or persons as may be
specified  in the  direction.  After a Change  in  Control,  the  Trustee  shall
exercise such powers,  or take any other action  described  above, only upon the
written direction of the Administrative Committee.

                           (c)      The Trustee  shall  hold  in  the  Trust the
proceeds of any sale, assignment or surrender of any Contract held in the  Trust
and any and all  dividends and other payments of any kind received in respect of
any Contract held in the Trust.

                           (d)      Upon  the written direction of  the  Company
prior  to  a  Change  in Control, the Trustee shall pay from the Trust premiums,
assessments,  dues, charges and interest,  if any, upon any Contract held in the
Trust. The Trustee  shall have no duty to make any such payment unless and until
it shall have received such  direction.  After a Change in Control,  the Trustee
shall pay from the Trust premiums,  assessments,  dues,  charges  and  interest,
if  any,  upon  any  Contact  held  in the Trust,  only upon  direction from the
Administrative Committee.

                                       -13-
<PAGE>

                           (e)      No insurance  company  that  may  issue  any
Contact  or  Contracts  held  in the Trust shall be deemed to be a party to this
Agreement for any purpose,  or to be  responsible in any way for the validity of
this  Agreement  or  to  have  any  liability under this Agreement other than as
stated in each Contract that it may issue.  Any insurance  company may deal with
the  Trustee  as  sole owner of any Contract issued by it and held in the Trust,
without  inquiry as to the  authority of the Trustee to act, and may accept  and
rely  upon  any  written  notice,  instruction,  direction, certificate or other
communication  from the  Trustee  believed  by it to be genuine and to be signed
by   an   officer   of   the   Trustee   and   shall   incur   no  liability  or
responsibility  for so doing.  Any sums paid out by any insurance  company under
any of the terms of a Contract  issued by it and held in the Trust either to the
Trustee,  or, in accordance  with its direction,  to any other person or persons
designated as payees in such Contract shall be a full and complete  discharge of
the  liability  to pay  such  sums,  and the  insurance  company  shall  have no
obligation to look to the disposition of any sums so paid. No insurance  company
shall be required  to look into the terms of this  Agreement,  to  question  any
action of the Trustee or to see that any action of the Trustee is  authorized by
the terms of this Agreement.

                           (f)      Anything  contained  herein  to the contrary
notwithstanding,  neither  the  Company,  the  Administrative Committee  nor the
Trustee  shall be liable for the  refusal  of any  insurance company to issue or
change any Contract or Contracts or to take any other  action  requested by  the
Trustee; nor for the form, genuineness,  validity,  sufficiency or effect of any
Contract  or  Contracts  held  in  the  Trust;  nor for the act of any person or
persons that may render any such Contract or Contracts  null  and void; nor  for
the failure of any  insurance company to pay the proceeds and avails of any such
Contract  or  Contracts  as and when the  same  shall  become  due and  payable;
nor for any delay in payment resulting from any provision contained in any  such
Contract or Contracts;  nor for the  fact  that for any reason whatsoever (other
than  their own  negligence  or  willful  misconduct) any  Contract or Contracts
shall lapse or otherwise become uncollectable.

                           (g)      After   a     Change    in    Control,   the
Administrative  Committee  shall  exercise  any  of the powers set forth in this
Article  SEVENTH,  including  the power to  negotiate for and purchase Contracts
the rates of return and  maturity  dates of which may reasonably  be expected to
yield assets of the Trust  sufficient to discharge any or all of the obligations
of the Company under the Plans.

         EIGHTH:  Taxes, Expenses and Compensation of Trustee, the Non-Qualified
         ------   --------------------------------------------------------------
 Plans Committee and the Administrative Committee.
 -------------------------------------------------
                           (a)      It is the intent of the Company and the
Trustee that the Company shall be responsible for determining and  effecting all
federal,   state  and  local  tax aspects of the Plans and the Trust,  including
without  limitation the payment of income taxes on the Trust's  income,  if any,
any required  withholding  of income or other  payroll taxes in connection  with
the payment of benefits from the Trust pursuant to the Plan,  and all  reporting
required in  connection  with any such taxes.  To the extent that the Company is
required  by   applicable   law to pay or withhold  such taxes  or to file  such
reports,   such   obligation   shall   be  a   responsibility  allocated  to the
Company,  as the case may be,  hereunder.  To the extent the Trustee is required
by  applicable  law to pay or withhold such taxes or to file such  reports,  the
Company shall inform the Trustee of such  obligation,  shall direct the  Trustee
with  respect  to  the  performance  of  such  obligations and shall provide the
Trustee  with all  information required by the Trustee to meet such obligations.

                                       -14-
<PAGE>

                           The Company  shall pay any Federal,  State,  Local or
other taxes imposed or levied with respect to the corpus and/or  income  of  the
Trust or any part thereof  under  existing or future laws, and the  Company,  or
the  Administrative  Committee,  if  applicable,  in their discretion,   or  the
Trustee,  in its  discretion,  may contest the  validity or  amount of any  tax,
assessment,   claim  or  demand  respecting the Trust or any part thereof.  Upon
direction  from  the  Administrative  Committee,   the  Trustee shall deduct any
payroll   taxes   required  to  be  withheld   with respect to any payments made
pursuant to the Trust.

                           (b)      The  Trustee,  without  direction  from  the
Company,  or  the  Administrative   Committee, if applicable, shall pay from the
Trust the reasonable and necessary  expenses and compensation of counsel and all
other  reasonable  and  necessary  expenses  of managing  and administering  the
Trust  and  the   Administrative   Committee  that   are not paid by the Company
including,   but not limited to, Participant record keeping expenses, investment
management  fees,  computer  time  charges,  data  retrieval  and  input  costs,
charges   for  time  expended  by  personnel  of  the Trustee in fulfilling  the
Trustee's duties,  expenses  incurred by the members of the Non-Qualified  Plans
Committee or the  Administrative  Committee in performance of their duties,  and
the compensation of the Administrative Committee.

                           (c)      The Company shall pay all administrative and
Trustee's fees and expenses. If not so paid, the fees and expenses shall be paid
from the Trust. The Trustee shall be entitled to fees for services, as  mutually
agreed,  between  the  Company  and the Trustee prior to a Change in Control and
between  the  Administrative   Committee  and  the Trustee following a Change in
Control. The Company  acknowledges  that as part of the Trustee's  compensation,
the  Trustee may earn  interest on balances including disbursement  balances and
balances arising from purchase and sale transactions.  If the  Trustee  advances
cash or  securities  to the  Trust  for any  purpose, including  the purchase or
sale of foreign  exchange or of contracts for foreign exchange,  or in the event
that the Trustee shall incur or be assessed  taxes, interest, charges, expenses,
assessments,  or other liabilities in connection with the  performance  of  this
Agreement,  except such as may arise from its own negligent  action,   negligent
failure to act or willful misconduct, any property at any time held in the Trust
Fund shall be  security  therefor  and the Trustee shall be entitled to  collect
from  the  Trust   sufficient  cash  for  reimbursement, and  if  such  cash  is
insufficient, dispose of the assets of the Trust Fund to the extent necessary to
obtain  reimbursement. To the extent the Trustee advances funds to the Trust for
disbursements  or to effect the settlement of purchase transactions, the Trustee
shall  be entitled to collect from the Trust either (i) with respect to domestic
assets,  an amount equal to what would have been earned on the sums advanced (an
amount approximating the "federal funds" interest rate) or (ii)  with respect to
non-domestic  assets,  the  rate  applicable  to the appropriate foreign market.

                           (d)      After a Change in Control, the Trustee shall
bill the Company directly, on a monthly basis, for all  expenses   described  in
Paragraph  (b) of  this  Article  EIGHTH and all fees described in Paragraph (c)
thereof which  amounts shall be  immediately due and payable except as otherwise
provided in Paragraph (c). If such amounts are not paid by the  Company   within
thirty (30) days of the billing date, the Trustee may pay such amounts from  the
Benefits  Protection  Account. The Trustee  may  take  such action  as it  deems
necessary to recover such amounts from the Company;  provided that  the  Trustee
shall be obligated to take action,  on a best efforts  basis, if  the  Company's
failure  to  pay  causes  a  reduction below $250,000 in the assets of the Trust
attributable to the Benefits Protection Account.

                                      -15-
<PAGE>

         NINTH:  General Duties of Trustee and Investment Director.
         -----   -------------------------------------------------
                    (a) Subject to Article SEVENTEENTH hereof, the Trustee,  any
Investment  Director  appointed  pursuant to Paragraph (b) of Article FIFTH, and
any  Investment  Manager  appointed  pursuant to Paragraph (c) of Article FIFTH,
shall discharge their duties under this Agreement  solely in the interest of the
Participants in the Plans and their  Beneficiaries and (1) for exclusive purpose
the of providing  benefits to such Participants and their  Beneficiaries and (1)
for defraying  reasonable  expenses of administering the Plans; and (2) with the
care, skill, prudence and diligence under the circumstances then prevailing that
a prudent man acting in a like capacity and familiar with such matters would use
in the conduct of an enterprise of a like character and with like aims; and (3),
where applicable, by diversifying the investments of the Trust so as to minimize
the risk of large losses,  unless under the  circumstances it is clearly prudent
not to do so; but the duties and  obligations  of the Trustee and any Investment
Director shall be limited to those expressly imposed upon them by this Agreement
notwithstanding any reference herein to the Plans.

                    (b)(1) The Trustee shall act with the care, skill,  prudence
and diligence  under the  circumstances  then  prevailing  that a prudent person
acting in like  capacity and familiar with such matters would use in the conduct
of an enterprise of a like character and with like aims, provided, however, that
the Trustee shall incur no liability to any person for any action taken pursuant
to a direction,  request or approval given by the Company which is  contemplated
by, and in conformity  with,  the terms of the Plan (as certified to the Trustee
by the  Company)  or this Trust and is given in writing by the  Company.  In the
event of a dispute between the Company and a third party,  the Trustee may apply
to a court of competent jurisdiction to resolve the dispute.

                    (2) The  Trustee  is not a party  to,  and has no  duties or
responsibilities  under,  the  Plans  other  than  those  that may be  expressly
contained in this Agreement.  In any case in which a provision of this Agreement
conflicts with any provision in the Plans, this Agreement shall control.

                    (3) The  Trustee  shall not be  responsible  for the  title,
validity or genuineness of any property or evidence of title thereto received by
it or delivered by it pursuant to this  Agreement  and shall be held harmless in
acting upon any notice, request, direction,  instruction, consent, certification
or other  instrument  believed by it to be genuine and  delivered  by the proper
party or parties.

                    (4) The Company  agrees to indemnify  and hold  harmless the
Trustee, its parent,  subsidiaries and affiliates,  and each of their respective
officers,  directors,  employees and agents from and against all liability, loss
and expense,  including reasonable  attorneys' fees and expenses incurred by the
Trustee or any of the foregoing indemnitees arising out of or in connection with
this  Agreement,  except  as  a  result  of  the  Trustee's  own  negligence  or
misconduct.   This  indemnification   shall  survive  the  termination  of  this
Agreement.

                    (5) If the  Trustee  undertakes  or defends  any  litigation
arising in  connection  with this Trust,  the Company  agrees to  indemnify  the
Trustee  against the  Trustee's  costs,  expenses  and  liabilities  (including,
without  limitation,  attorneys' fees and expenses)  relating  thereto and to be
liable for such payments,  except as a result of any litigation which arises out
of the Trustee's own negligence or misconduct.  If the Company does not pay such
costs,  expenses and liabilities in a reasonably timely manner,  the Trustee may
obtain payment from the Trust.

                    (6) The Trustee may consult with legal counsel (who may also
be  counsel  for the  Company  generally)  with  respect to any of its duties or
obligations hereunder.

                                      -16-
<PAGE>

                    (7) The Trustee  may hire  agents,  accountants,  actuaries,
investment advisors,  financial  consultants or other professionals to assist it
in performing any of its duties or obligations hereunder.

                    (8) The Trustee  shall have  without  exclusion,  all powers
conferred on Trustees by applicable law,  unless  expressly  provided  otherwise
herein,  provided,  however,  that if an insurance policy is held as an asset of
the Trust,  the Trustee shall have no power to name a beneficiary  of the policy
other than the Trust,  to assign the policy (as distinct from  conversion of the
policy to a different form) other than to a successor Trustee, or to loan to any
person the proceeds of any borrowing against such policy.

                    (9)  Notwithstanding  any  powers  granted  to  the  Trustee
pursuant to this Trust  Agreement or to  applicable  law, the Trustee  shall not
have any power  that  could  give this  Trust the  objective  of  carrying  on a
business  and  dividing  the gains  therefrom,  within  the  meaning  of Section
301.770l-2 of the Procedure and Administrative  Regulations promulgated pursuant
to the Internal Revenue Code.

                    (10)  Notwithstanding  anything  in  this  Agreement  to the
contrary  contained  herein,  the Trustee shall not be responsible or liable for
its  failure to  perform  under  this  Agreement  or for any losses to the Trust
resulting  from any event  beyond the  reasonable  control of the  Trustee,  its
agents or  custodians,  including but not limited to  nationalization,  strikes,
expropriation,  devaluation,  seizure,  or  similar  action by any  governmental
authority,  de facto or de  jure;  or  enactment,  promulgation,  imposition  or
enforcement  by  any  such  governmental  authority  of  currency  restrictions,
exchange  controls,  levies or other charges affecting the Trust's property;  or
the breakdown,  failure or  malfunction  of any utilities or  telecommunications
systems;  or any order or  regulation  of any  banking  or  securities  industry
including changes in market rules and market conditions  affecting the execution
or  settlement  of  transactions;  or acts of war,  terrorism,  insurrection  or
revolution;  or acts of God; or any other  similar  event.  This  Section  shall
survive the termination of this Agreement.

                    (11) The Trustee shall not be liable for any act or omission
of any other person in carrying out any responsibility  imposed upon such person
and  under no  circumstances  shall the  Trustee  be  liable  for any  indirect,
consequential, or special damages with respect to its role as Trustee.

                    (12) If the Company or the Administrative  Committee directs
the Trustee to invest the Trust Fund in securities or other  obligations  of the
Company, or the Company contributes to the Trust Fund such securities,  then the
Trustee shall have no fiduciary or other  liability for decisions to purchase or
hold such investments. Also, the Non-Qualified Plans Committee prior to a Change
in Control  and the  Administrative  Committee  after a Change in Control  shall
direct the Trustee as to the voting of any Company stock held in the Trust.  The
Company shall indemnify the Trustee for any liabilities that arise on account of
such contributions or investments. This Section shall survive the termination of
this Agreement.

                    (c)(1)  Within  thirty  (30) days after a Change in Control,
the Company  shall notify  Participants  and  Beneficiaries  of the Plans,  in a
manner   approved   by  the   Administrative   Committee,   in  writing  of  the
Administrative  Committee's availability to aid them in pursuing any claims they
may have  against the Company  under the terms of those of the Plans under which
they are covered.  If the Company fails to do so, the  Administrative  Committee
shall  notify  Participants  and  Beneficiaries  of the Plans in  writing of the
Administrative  Committee's availability to aid them in pursuing any claims they
may have  against the Company  under the terms of those of the Plans under which
they are covered.

                                      -17-
<PAGE>

                    (2)  If,  after  a  Change  of  Control,  a  Participant  or
Beneficiary of a Plan notifies the Administrative Committee that the Company (or
insurance company, contract administrator or any other party, if applicable) has
refused to pay a claim asserted by the  Participant or Beneficiary  under any of
the Plans, and the Administrative  Committee  determines that the assets held in
the  Accounts  are  not   available  to  pay  such  claim,   then,   unless  the
Administrative  Committee shall determine that the claim has no basis in law and
fact (in which case the Administrative Committee shall notify the Participant or
Beneficiary of such  determination and shall take no further action with respect
to the claim), the Administrative Committee:

                           (A)  will  promptly  attempt  to  negotiate  with the
         Company (or insurance company,  contract  administrator or other party,
         if applicable)to  obtain payment,  settlement,  or other disposition of
         the claim, subject to the consent of the Participant or Beneficiary;

                           (B) will if (i)  negotiations  fail after  sixty (60)
         days of their commencement to result in a payment,  settlement or other
         disposition  agreeable to the  Participant  or  Beneficiary  (hereafter
         referred to in this Paragraph (c) of Article NINTH as the "Plaintiff"),
         (ii)  the  Administrative  Committee  at any time  reasonably  believes
         further  negotiations  not to be in the Plaintiffs  best  interest,  or
         (iii) any applicable  statute of  limitations  would  otherwise  expire
         within sixty (60) days, upon the receipt of written  authorization from
         the Plaintiff in  substantially  the form attached as Exhibit A hereto,
         institute and maintain legal proceedings (the "Litigation") against the
         Company or other  appropriate  person or entity to recover on the claim
         on behalf of the Plaintiff; and

                           (C)  may,  subject  to  the  written  consent  of the
         Plaintiff,  settle or discontinue  the Litigation.  The  Administrative
         Committee  shall direct the course of the Litigation and shall keep the
         Plaintiff   informed  of  the  progress  of  the   Litigation   as  the
         Administrative Committee deems appropriate, but no less frequently than
         quarterly.  If,  during the  Litigation,  i) the  Plaintiff  directs in
         writing that the  Litigation  on behalf of the  Plaintiff be settled or
         discontinued,  the Administrative  Committee shall take all appropriate
         action to follow such  direction,  provided that the written  direction
         specifies the terms and conditions of the settlement or discontinuance,
         and  further   provided  that  the  Plaintiff,   if  requested  by  the
         Administrative   Committee,   shall   execute   and   deliver   to  the
         Administrative  Committee  a  document  in a  form  acceptable  to  the
         Administrative   Committee   releasing   and   holding   harmless   the
         Administrative   Committee  from  any  liability   resulting  from  the
         Administrative   Committee  following  such  direction;  or  (iii)  the
         Plaintiff  refuses to consent to the settlement or other disposition of
         the Litigation on terms  recommended  in writing by the  Administrative
         Committee,  the Administrative  Committee may proceed,  in its sole and
         absolute discretion, to take such action as it deems appropriate in the
         Litigation,  including  settlement or discontinuance of the Litigation,
         provided that the  Administrative  Committee shall afford the Plaintiff
         at least  fourteen (14) days' advance  notice of any decision to settle
         or otherwise  discontinue the Litigation,  subject to the provisions of
         the following sentence.

                  If, at any time,  the  Plaintiff  (x)  revokes in writing  (in
substantially  the form attached as Exhibit B hereto) the  authorization  of the
Administrative  Committee to proceed on his behalf and delivers  such writing to
the  Administrative  Committee  and (y) appoints his own counsel and so notifies
the Administrative  Committee in writing,  whose fees and expenses are not to be
paid by the  Trust  and who  shall  appear  in the  Litigation  on behalf of the
Plaintiff in lieu of counsel retained by the Administrative  Committee, then the
Administrative Committee shall not be authorized to proceed in the Litigation on
behalf of the Plaintiff.  Thereafter, the Administrative Committee shall have no

                                      -18-
<PAGE>

obligation to proceed further on behalf of such Plaintiff or to pay any costs or
expenses  incurred  in the  Litigation  after the date of the  delivery  of such
writing.

                  The  Administrative  Committee is empowered to retain,  at the
expense of the Trust, counsel and other appropriate experts, including actuaries
and accountants,  to aid it in making any determination under this Paragraph (c)
of Article NINTH and in determining  whether to pursue or settle any Litigation.
The Administrative Committee shall have the discretion to determine the form and
nature that any Litigation  against the Company or other  appropriate  person or
entity  shall  take,  and the  procedural  rules  and  laws  applicable  to such
Litigation shall supersede any inconsistent provision of this Agreement.

                  (d)  Subparagraph  (ii)(2) shall be inapplicable in respect of
any  Litigation  involving  the payment of benefits  under any Plan in which the
Administrative  Committee  is named a defendant.  Any  Plaintiff in an action in
which the  Administrative  Committee  or the Trustee is named a defendant  shall
engage his own counsel,  whose fees and expenses shall be paid by the Plaintiff,
provided, however, that the Administrative Committee shall pay out of the assets
of the Benefits Protection Account of the Trust any legal fees and costs awarded
to the Plaintiff by a court in such Litigation.

                  (e) In the event the Administrative  Committee determines that
the claim of a Participant or  Beneficiary  has no basis in law or fact and such
Participant  or  Beneficiary  pursues such claim  against the Company,  then the
Administrative  Committee  shall reimburse the Participant or Beneficiary out of
the assets of the Benefits  Protection Account for any reasonable legal fees and
other  reasonable  costs incurred in pursuing such claim if such  Participant or
Beneficiary  obtains a  settlement  or final  judgment  of a court of  competent
jurisdiction  under which the  Participant or Beneficiary is to receive not less
than 50% of the amount originally claimed to the Administrative Committee as the
amount owed by the Company.

                  (f)  With   respect  to  claims  by   holders   of   Severance
Compensation Agreements,  such holders may elect to pursue their own claim (with
counsel of their  choice) or to have the  Administrative  Committee  pursue such
claim.  In the  event  such  holders  elect to  pursue  their  own  claims,  the
Administrative Committee shall promptly reimburse such holders for all attorneys
fees and other  expenses  incurred to the extent the  Company  does not pay such
amounts as provided in the Severance Compensation Agreements.

                  (g) The Company will, prior to a Change in Control,  designate
legal counsel to the Administrative  Committee at the expense of the Trust after
a Change in Control,  to enforce the rights of Participants and Beneficiaries to
benefits under the Plans, as described above. If the designated counsel declines
to provide  representation  because of an ethical or legal conflict of interest,
or  the   Administrative   Committee  is  not  satisfied  with  the  quality  of
representation provided, the Administrative  Committee,  may, from time to time,
dismiss the designated  firm or any successor and engage  another  qualified law
firm  for  this  purpose  including  the same  law  firm  which  represents  the
Administrative  Committee with respect to its responsibilities as Administrative
Committee  under this  Agreement.  The  Company  may not  dismiss or engage such
counsel or cause the Administrative  Committee to engage or dismiss such counsel
after a Change in Control.

         TENTH:  General Duties of the Administrative Committee

                  (a) Subject to Article SEVENTEENTH  hereof,  after a Change in
Control,  the  Administrative  Committee shall discharge their duties under this

                                      -19-
<PAGE>

Agreement  solely in the  interest  of the  Participants  in the Plans and their
beneficiaries  and (1) for the exclusive  purpose of providing  benefits to such
Participants  and their  beneficiaries  and  defraying  reasonable  expenses  of
administering  the Plans; and (2) with the care,  skill,  prudence and diligence
under the  circumstances  then  prevailing  that a prudent  man acting in a like
capacity  and  familiar  with  such  matters  would  use  in the  conduct  of an
enterprise of a like character and with like aims; and (3), by diversifying  the
investments  of the Trust so as to  minimize  the risk of large  losses,  unless
under the  circumstances  it is clearly prudent not to do so; but the duties and
obligations of the Administrative  Committee shall be limited to those expressly
imposed upon them by this Agreement  notwithstanding any reference herein to the
Plans.

                  (b) The Administrative Committee shall consist of either three
(3) or five (5) members  who,  prior to a Change in Control,  shall be appointed
by, and serve at the pleasure  of, the Board of  Directors  of the Company.  The
Board may,  at any time prior to a Change in Control,  designate  the members of
the Administrative  Committee,  fill vacancies or require the resignation of one
or more of the members of the Administrative Committee with or without cause. In
the  event  that a  vacancy  or  vacancies  shall  occur  on the  Administrative
Committee  prior to a Change in Control,  the remaining  member or members shall
act as the  Administrative  Committee  until the Board  fills  such  vacancy  or
vacancies.  However, upon a Change in Control, no member may be removed, for any
reason,  by the  Board.  In the event  that a vacancy  occurs  after a Change in
Control,  the  Board  shall  have no  authority  to fill  such  vacancy  and the
remaining members of the Administrative  Committee shall select a replacement to
serve on the  Administrative  Committee.  No person shall be  ineligible to be a
member of a Administrative  Committee  because he is, was or may become entitled
to benefits under any of the Plans;  or because he is a director and/or employee
of the Company,  Affiliate or a Trustee;  provided, that no Participant who is a
member of the Administrative Committee shall participate in any determination by
the  Administrative  Committee  specifically  relating  to  the  calculation  or
disposition  of his  benefits  under  any of the  Plans.  Prior to a  Change  in
Control,  the Board may appoint a member of the  Administrative  Committee to be
the  Chairman of the  Administrative  Committee.  Upon a Change in Control,  the
Administrative  Committee  shall be  responsible  for appointing a member of the
Administrative Committee as the Chairman of the Administrative Committee.

                  (c)      Except as otherwise expressly provided in this
Agreement or by the Board of Directors prior to a Change in
Control:
                           (1)      After a Change in Control, the
Administrative Committee shall have the authority to invest and
manage the  assets of the Trust,  including  the assets of the  Vanguard  Trust,
pursuant to Article FIFTH.

                           (2)      The Administrative Committee shall have  all
powers necessary or helpful for the carrying out of its  responsibilities,   and
the  decisions  or  actions  of the  Administrative  Committee  in good faith in
respect  of  any  matter   hereunder  shall  be  conclusive and binding upon all
parties concerned.

                           (3)      The Administrative Committee may delegate to
one or more of its members or any other person the right to act on its behalf
with respect to the implementation of a decision of the Administrative
Committee.
                           (4)      After a Change in Control, subject to
Paragraph (b)  of  Article SEVENTEENTH, the Administrative Committee,  by action
of a majority of its members,  shall have the authority to amend this Agreement.
No amendment shall be made without the Trustee's  consent thereto in writing if,
and  to  the  extent  that,   the  effect  of such  amendment is to increase the
Trustee's  responsibilities  hereunder.   Such  proposed  amendment   shall   be

                                      -20-
<PAGE>

delivered  to the Trustee as a written  instrument  of  amendment, duly executed
and  acknowledged  by  the Administrative Committee. The Trustee's consent shall
not be required  for the  termination  of the  Trust or its removal  as Trustee.

                           (5)      Without  limiting   the generality  of   the
foregoing,  the Administrative Committee shall have full discretionary authority
to:
                                    (i)     Determine all questions arising  out
                   of  or   in connection  with the terms and provisions of this
                  Agreement except as otherwise expressly provided herein;

                                    (ii)  Make  rules  and  regulations  for the
                  administration  of the Trust which are not  inconsistent  with
                  the terms and provisions of this Agreement, and fix the annual
                  accounting  period of the Trust,  which shall initially be the
                  calendar year;

                                    (iii)   Construe   all  terms,   provisions,
                  conditions  and  limitations  to the  Trust;

                                    (iv) Determine all questions relating to the
                  administration  the Trust (i) when  disputes arise between the
                  Company and a Participant or his/her  Beneficiary,  spouse  or
                  legal   representatives  and (ii)  whenever the Administrative
                  Committee deems it advisable to determine such   questions  in
                  order to promote the uniform  administration of the Trust; and

                                    (v) Monitor the  performance  of the Trustee
                  or  any  Investment  Director  for  the  Trust.  In  order  to
                  accomplish this, the Administrative  Committee shall meet with
                  the Trustee or any  Investment  Director,  at such time as the
                  Administrative    Committee   shall    determine,    and   the
                  Administrative  Committee  shall  request  the  Trustee or any
                  Investment  Director to present a full report on the financial
                  position  of the Trust  under the  control  of any  Investment
                  Director; and

                                    (vi)  Make  rules  and  regulations  for the
                  administration of the  Administrative  Committee which are not
                  inconsistent with the terms and provisions of this Agreement.
                           The foregoing list of powers is not  intended  to  be
either  complete  or  exclusive,  and  the  Administrative  Committee shall,  in
addition,  have  such  powers   as  may be  necessary for the performance of its
duties under the  Trust.
                           (d) The Administrative Committee  shall  advise   the
Trustee in writing with respect to all benefits which become  payable  under the
terms  of  the Trust  and shall direct the Trustee to pay such benefits to or on
order of the Administrative Committee.

                           (e)      The Administrative Committee may employ such
counsel,  including  legal counsel, actuaries, accountants, investment advisors,
physicians,  agents  and  such  clerical and other services as it may require in
carrying  out  the  provisions  of the Trust.  Unless  paid  by the Company, the
Administrative Committee shall charge the fees, charges and costs resulting from
such employment as an expense of the Trust. Unless otherwise  provided  by  law,
any  person  so  employed  by the Administrative Committee may be legal or other
counsel to the Company,  an affiliate, a member of the  Administrative Committee
or an  officer  or  member  of the  Board  of Directors or an affiliate.

                           (f)      Each member of the Administrative Committee
shall receive compensation, as mutually agreed between
the Company and the Administrative Committee prior to a Change in Control, or as
determined by the Administrative  Committee after a Change in Control, for their
services in connection with the Trust.

                           (g)      The Administrative Committee may purchase
such fiduciary liability insurance or such other insurance as it deems necessary

                                      -21-
<PAGE>

relating to the performance of its obligations  hereunder. Unless  paid  by  the
Company,  the  Administrative  Committee shall charge the  premiums  and charges
resulting  from such  insurance as an expense of the Trust.

         ELEVENTH: General Duties of the Non-Qualified Plans Committee.  Subject
to Article SEVENTEENTH hereof, the Non-Qualified Plans Committee shall discharge
their duties under this Agreement  solely in the interest of the Participants in
the Plans and their beneficiaries and (1) for the exclusive purpose of providing
benefits to such Participants and their  beneficiaries and defraying  reasonable
expenses of administering the Plans; and (2) with the care, skill,  prudence and
diligence under the circumstances then prevailing that a prudent man acting in a
like  capacity  and familiar  with such  matters  would use in the conduct of an
enterprise of a like character and with like aims.

         TWELFTH:  Indemnification.  The Company agrees, to the extent permitted
by law, to indemnify and hold the Trustee, the Non-Qualified Plans Committee and
the  Administrative  Committee harmless from and against any liability that they
may incur in the administration of the Trust, unless arising from the Trustee's,
the Non-Qualified Plans Committee's or the Administrative  Committee's own gross
negligence or willful  breach of the  provisions of its  obligations  under this
Agreement.  If the  Company  fails  to  indemnify  and  hold  the  Trustee,  the
Non-Qualified Plans Committee or the Administrative  Committee harmless from and
against any liability  that they may incur in the  administration  of this Trust
pursuant to this Article  TWELFTH,  the Test shall  indemnify  the Trustee,  the
Non-Qualified  Plans  Committee  or the  Administrative  Committee to the extent
permitted  by  law.  The  Trustee,  the  Non-Qualified  Plans  Committee  or the
Administrative  Committee  shall not be  required  to give any bond or any other
security for the faithful  performance of its duties under this Agreement except
as required by law.

         THIRTEENTH:  No Duty To Advance Funds.  The   Trustee  shall   have  no
         ----------   ------------------------
obligation to  advance  its  own  funds  for  the  purposes  of  fulfilling  its
responsibilities under this Agreement.

         FOURTEENTH:  Accounts.
         ----------   --------
         (a)(1) The Trustee shall keep accurate and detailed accounts of all its
receipts,  investment and disbursements  under this Agreement on a calendar year
basis,  accounting  for each Account on a separate  basis.  Prior to a Change in
Control,  the Non-Qualified Plans Committee and, after a Change in Control,  the
Administrative  Committee,  shall be  allowed  to  inspect  the books of account
relating  to the Trust upon  request at any  reasonable  time during the regular
business hours of the Trustee.

                  (2) Within 60 days after the close of each calendar  year, the
Trustee shall transmit to the Company, and to the Administrative Committee after
a Change in Control,  and certify the  accuracy  of, a written  statement of the
assets and liabilities of the Trust,  showing the current value of each asset at
that date, and a written account of all the Trustee's  transactions  relating to
the Trust during the period from the last  previous  accounting  to the close of
that  year.   The  report  of  any  such   valuation   shall  not  constitute  a
representation  by the Trustee that the amounts  reported as fair market  values
would actually be realized upon the  liquidation of the Trust.  For the purposes

                                      -22-

<PAGE>

of this  Subparagraph,  the date of the  Trustee's  resignation  or  removal  as
provided in Article  SIXTEENTH hereof or the date of termination of the Trust as
provided  in  Article  SEVENTEENTH  hereof  shall be deemed to be the close of a
year.

                  (3) Unless the Company (or the Administrative Committee, after
a Change in Control)  shall have filed with the Trustee  written  exceptions  or
objections  to any such  statement  and  account  within 120 days after  receipt
thereof,  the  Company  (or the  Administrative  Committee,  after a  Change  in
Control)  shall be deemed to have  approved such  statement and account;  and in
such case or upon the written  approval  by the  Company (or the  Administrative
Committee,  after a Change in Control) of any such  statement  and account,  the
Trustee shall be forever released and discharged with respect to all matters and
things  contained in such statement and account as though it had been settled by
decree of a court of competent  jurisdiction in an action or proceeding to which
the Company (or the Administrative Committee, after a Change in Control) and all
persons having any beneficial interest in the Trust were parties.

         (b) Nothing  contained in this  Agreement or in the Plans shall deprive
the Trustee of the right to have a judicial  settlement of its accounts.  In any
proceeding  for  a  judicial   settlement  of  the  Trustee's  accounts  or  for
instructions  in  connection  with the  Trust,  the only other  necessary  party
thereto in  addition  to the  Trustee  shall be the  Company.  If the Trustee so
elects,  it may bring in as a party or  parties  defendant  any other  person or
persons. No person interested in the Trust, other than the Company, shall have a
right to compel an accounting,  judicial or otherwise,  by the Trustee, and each
such person shall be bound by all accountings by the Trustee to the Company,  as
herein  provided,  as if the  account  had been  settled by decree of a court of
competent  jurisdiction  in an action or  proceeding  to which such person was a
party.

         FIFTEENTH:  Administration of the Plans: Communications.
         ---------   -------------------------------------------
                  (a) The Company and/or the  Non-Qualified  Plans  Committee or
the Administrative  Committee shall administer the Plans as provided therein and
subject to Paragraph  (b) of Article  FOURTH and  Paragraph (c) of Article NINTH
hereof,   or  subject  to  any  other  delegation  by  the  Company  and/or  the
Non-Qualified Plans Committee or the Administrative  Committee and assumption by
the Trustee of the duties of  administering  the Plans, the Trustee shall not be
responsible in any respect for  administering the Plans nor shall the Trustee be
responsible for the adequacy of the Trust to meet and discharge all payments and
liabilities  under the Plans.  The Trustee  shall be fully  protected in relying
upon any written notice, instruction, direction or other communication signed by
an employee of the Company or a member of the  Non-Qualified  Plans Committee or
the  Administrative  Committee who is authorized to execute and deliver,  in the
name and on behalf of the Company or the  Non-Qualified  Plans  Committee or the
Administrative  Committee,  documents or instruments  relating to the Trust. The
Company  and/or  the  Non-Qualified   Plans  Committee  or  the   Administrative
Committee,  from time to time,  shall  furnish  the  Trustee  with the names and
specimen  signatures of the  Authorized  Persons and shall  promptly  notify the
Trustee  of  the  termination  of  office  of  any  Authorized  Person  and  the
appointment of a successor thereto.  Until notified to the contrary, the Trustee
shall be fully  protected  in relying  upon the most recent  list of  Authorized
Persons furnished to it by the Company and/or the Non-Qualified  Plans Committee
or the Administrative Committee.

                  (b) Any action  required by any provision of this Agreement to
be taken by the  Board of  Directors  of the  Company  shall be  evidenced  by a
resolution of such Board of Directors  certified to the Trustee by the Secretary
or an  Assistant  Secretary of the Company  under its  corporate  seal,  and the

                                      -23-
<PAGE>

Trustee shall be fully  protected in relying upon any resolution so certified to
it. Unless other evidence with respect thereto has been specifically  prescribed
in this  Agreement,  any other  action of the Company  and/or the  Non-Qualified
Plans  Committee or the  Administrative  Committee  under any  provision of this
Agreement,  including any approval of or  exceptions to the Trustee's  accounts,
shall be evidenced by a  certificate  signed by an  Authorized  Person,  and the
Trustee shall be fully protected in relying upon such  certificate.  The Trustee
may accept a certificate  signed by an Authorized Person as proof of any fact or
matter  that  it  deems  necessary  or  desirable  to  have  established  in the
administration  of the Trust  (unless  other  evidence of such fact or matter is
expressly  prescribed  herein),  and the  Trustee  shall be fully  protected  in
relying upon the statements in the certificate.

                  (c) The Trustee  shall be entitled  conclusively  to rely upon
any written notice, instruction,  direction,  certificate or other communication
believed by it to be genuine and to be signed by an Authorized  Person,  and the
Trustee shall be under no duty to make  investigation or inquiry as to the truth
or accuracy of any statement contained therein.

                  (d)  Until   written   notice   is  given  to  the   contrary,
communications  to the  Trustee  shall be sent to it at its office at One Mellon
Bank  Center,   Pittsburgh,   Pennsylvania  15258,  Attention:  Ralph  Phelleps;
communications to the Company shall be sent to it at its office at 3102 West End
Avenue, Nashville,  Tennessee 37203, Attention:  General Counsel and Director of
Human Resources,  communications to the  Non-Qualified  Plans Committee shall be
sent  to  it  at  3102  West  End  Avenue,   Nashville,   Tennessee  37203,  and
communications  to the  Administrative  Committee  of the UCAR  Carbon  Benefits
Protection  Trust  shall  be sent  to it at 3102  West  End  Avenue,  Nashville,
Tennessee 37203.

         SIXTEENTH:  Resignation or Removal of Trustee.
         ---------   ---------------------------------
                  (a) The Trustee may resign at any time upon 120 days'  written
notice to the Company,  and to the  Administrative  Committee  after a Change in
Control,  or  such  shorter  period  as is  acceptable  to the  Company  and the
Administrative  Committee.  However, such resignation shall not become effective
unless and until a successor  trustee is appointed.  If such resignation  occurs
before a Change in Control,  the Company shall appoint a successor  trustee.  If
such resignation occurs after a Change in Control, the Administrative  Committee
shall have the right to appoint a successor trustee. In either case, the Company
or the  Administrative  Committee,  as the case may be, shall diligently seek to
obtain a successor trustee.  Until the appointment of a successor  trustee,  the
Trustee  shall  continue to perform  its duties  hereunder  until the  successor
trustee is in place,  and the Trustee  shall be  entitled  to expenses  and fees
through the effective date of its resignation as Trustee.

                  (b) The Company,  by action of its Board of Directors before a
Change in Control,  and the Administrative  Committee after a Change in Control,
may remove the  Trustee  upon 30 days  written  notice to the  Trustee,  or upon
shorter  notice if  acceptable  to the  Trustee.  The Company may not remove the
Trustee  after a Change in Control.  In the event it resigns or is removed,  the
Trustee  shall have a right to have its accounts  settled as provided in Article
FOURTEENTH hereof.

                  (c) Each  successor  trustee  shall have the powers and duties
conferred upon the Trustee in this Agreement,  and the term "Trustee" as used in
this  Agreement  shall  be  deemed  to  include  any  successor  trustee.   Upon
designation or appointment  of a successor  trustee,  the Trustee shall transfer
and  deliver  the Trust to the  successor  trustee,  reserving  such sums as the
Trustee shall deem necessary to defray its expenses in settling its accounts, to
pay any of its  compensation  due and unpaid and to discharge any  obligation of

                                      -24-
<PAGE>

the Trust for which the Trustee may be liable.  If the sums so reserved  are not
sufficient  for these  purposes,  the  Trustee  shall be entitled to recover the
amount of any deficiency  from either the Company or the successor  trustee,  or
both. When the Trust shall have been  transferred and delivered to the successor
trustee and the accounts of the Trustee have been settled as provided in Article
FOURTEENTH hereof, the Trustee shall be released and discharged from all further
accountability  or liability for the Trust and shall not be  responsible  in any
way for the further disposition of the Trust or any part thereof.

         SEVENTEENTH:  Amendment of Agreement: Termination of Trust.
         -----------   --------------------------------------------
                  (a) Subject to Paragraph (b) of this Article  SEVENTEENTH  and
Article TENTH, the Company  expressly  reserves the right at any time prior to a
Change in Control to amend or terminate  this  Agreement  and the Trust  created
thereby to any extent that it may deem  advisable.  No  amendment  shall be made
without the Trustee's consent thereto in writing if, and to the extent that, the
effect of such  amendment is to increase,  or otherwise  change,  the  Trustee's
responsibilities  hereunder.  Such proposed  amendment shall be delivered to the
Trustee as a written instrument of amendment,  duly executed and acknowledged by
the Company and  accompanied by a certified copy of a resolution of the Board of
Directors  of  the  Company  authorizing  such  amendment.  Notwithstanding  the
foregoing,  the Non-Qualified Plans Committee shall also have the right to amend
this  Agreement  in such  manner  as is set forth in this  Article  SEVENTEENTH,
without any authorization  from the Board of Directors of the Company,  provided
that the annual  cost to the  Company  of such  amendments,  determined  without
regard to the effective  date of such  amendments,  does not exceed five hundred
thousand  dollars  ($500,000).  The Company also shall  deliver to the Trustee a
copy of any  modifications  or  amendments to the Plans.  The Trustee's  consent
shall  not be  required  for the  termination  of the  Trust or its  removal  as
Trustee.

                  (b)  Notwithstanding  any other  provisions of this Agreement,
the  provisions of this Agreement and the Trust created hereby may be amended or
terminated after the date a Change in Control occurs with the written consent of
a majority of the members of the Administrative Committee. No amendment shall be
made  without  the  Trustee's  consent  thereto in writing if, and to the extent
that,  the effect of such  amendment is to increase,  or otherwise  change,  the
Trustee's  responsibilities  hereunder.  The Trustee, after a Change in Control,
upon written advice of counsel and the approval of the Administrative Committee,
may amend the provisions of this Agreement to the extent  required by applicable
law. The Company  reserves the right to amend or eliminate this Paragraph (b) of
Article SEVENTEENTH prior to the date of a Change in Control.

                  (c) In the event the Company terminates the Trust prior to the
occurrence  of a Change in Control,  the Trustee  (subject to the  provisions of
Paragraph (d) of Article FOURTH and Article EIGHTEENTH hereof and reserving such
sums as the  Trustee  shall deem  necessary  in  settling  its  accounts  and to
discharge any obligation of the Trust for which the Trustee may be liable) shall
distribute  all  remaining  assets of the Trust in  accordance  with the written
directions of the Company.

                  (d) In case  any one or all of the  Plans  are  terminated  in
whole  or in part,  or  expires,  after a Change  in  Control  occurs,  then the
Trustee,  subject to the  provisions  of Paragraph  (d) of Article  FOURTH,  and
Article  EIGHTEENTH  hereof,  and reserving  such sums as the Trustee shall deem
necessary in settling its accounts and to discharge any  obligation of the Trust
for which the  Trustee  may be liable,  shall  apply or  distribute  the Account

                                      -25-
<PAGE>

established  with  regard to such Plan  pursuant  to  Paragraph  (a) of  Article
SECOND, in such manner and in such amounts as the Administrative Committee shall
determine based upon the most recent  Participant  Data (as defined in Paragraph
(b) of Article  FOURTH  hereof)  forwarded by the Company to the Trustee and any
supplemental   information  furnished  to  the  Trustee  or  the  Administrative
Committee  after a Change in Control by a Participant or Beneficiary  upon which
the Administrative Committee may reasonably rely in making such a determination.
After  satisfying all liabilities  with regard to such terminated Plan, from the
Account established with regard to such Plan, the Administrative Committee shall
direct  the  Trustee  to  distribute  the  remaining  assets in such  Account in
accordance with Paragraph (d)(6) of Article SECOND.  Subject to Paragraph (b) of
Article  EIGHTEENTH,  in the  event of a Change  in  Control,  the  Trust  shall
continue in effect until the later of the tenth one year anniversary of the date
on  which  a  Change  in  Control  occurs  or the  date  upon  which  all of the
Participants' and Beneficiaries'  benefits under all of the Plans have been paid
or otherwise provided for. Upon termination of the Trust, the Trustee shall have
a right to have its account  settled as provided in Article  FOURTEENTH  hereof.
Any assets  remaining in the Trust after  payment or provision  for all benefits
payable  under the Plans,  and after the  Trustee has  reserved  such sums as it
deems necessary for the payment of its expenses and fees hereunder shall be paid
in accordance with the written directions of the Administrative  Committee. When
the Trust assets shall have been so applied or  distributed  and the accounts of
the Trustee  shall have been so  settled,  the  Trustee  shall be  released  and
discharged from all further accountability or liability respecting the Trust.

         EIGHTEENTH:  Prohibition of Diversion.
         ----------   ------------------------
                  (a) Except as  provided  in  Paragraph  (h) below,  at no time
prior to the satisfaction of all liabilities  with respect to the  beneficiaries
under this Trust shall any part of the corpus and/or income of the Trust be used
for, or  diverted  to,  purposes  other than for the  exclusive  benefit of such
beneficiaries  and the assets of the Trust  shall  never inure to the benefit of
the Company and shall be held for the exclusive  purposes of providing  benefits
to Participants in the Plans and their  Beneficiaries  and defraying  reasonable
expenses of  administering  the Plans or performing any of the Trustee's  duties
under this Agreement.

                  (b)  Notwithstanding  any  provision of this  Agreement to the
contrary, the assets of the Trust shall at all times be subject to claims of the
creditors of the Company.  In the event that (1) a final judicial  determination
is entered  that the Company is unable to pay its debts as such debts  mature or
(2) there  shall have been filed by or against the Company in any court or other
tribunal  either of the United States or of any State or of any other  authority
now or hereafter exercising jurisdiction, a petition in bankruptcy or insolvency
proceedings  or for  reorganization  or for the  appointment  of a  receiver  or
trustee of all or substantially all of the Company's  property under the present
or any future Federal  bankruptcy code or any other present or future applicable
Federal,  State or other  bankruptcy  or  insolvency  statute  or law,  then the
Trustee  shall  not  make  payments  from  the  Trust  to  any   Participant  or
Beneficiary,  but under either of such circumstances,  the Trustee shall deliver
any  property  held in the Trust only as a court or other  tribunal of competent
jurisdiction  may direct to satisfy the claims of the Company's  creditors.  The
Trustee  shall  resume  payments  under  the  terms  of  the  Trust  only  after
determining  that the  Company is not  insolvent  or after  receiving a judicial
decision to that  effect.  The Chief  Financial  Officer of the  Company,  or an
employee  of the  Company  with  duties  similar  to those of a Chief  Financial
Officer, and the Board of Directors of the Company shall have the duty to inform
the  Trustee of the  insolvency  of the  Company.  The Trustee is  empowered  to

                                      -26-
<PAGE>

retain,  at the  expense of the Trust,  counsel and other  appropriate  experts,
including accountants,  to aid it in making any determination with regard to the
Company's insolvency under this Paragraph (b)of Article EIGHTEENTH.

        NINETEENTH: Prohibition of Assignment of Interest. No interest, right or
claim  in or to any  part  of  the  Trust  or any  payment  therefrom  shall  be
assignable,  transferable or subject to sale, mortgage,  pledge,  hypothecation,
commutation,  anticipation,  garnishment,  attachment,  execution or levy of any
kind, and the Trustee and/or the  Administrative  Committee  shall not recognize
any attempt to assign, transfer, sell, mortgage, pledge, hypothecate, commute or
anticipate the same, except to the extent required by law.

        TWENTIETH:  Affiliates. Any corporation that, directly or through one or
more intermediaries,  controls, is controlled by or is under common control with
the Company may adopt and become a parry to this  Agreement by delivering to the
Trustee an instrument in writing,  duly executed and acknowledged,  adopting and
assuming  jointly  and  severally  the  obligations  of the  Company  under this
Agreement  and  constituting  and  appointing  the  Company  to be the agent and
attorney in fact of such  corporation  for the  purposes of giving or  receiving
notices,  instructions,  directions  and  other  communications  to or from  the
Trustee and approving the accounts of the Trustee, accompanied by duly certified
copies of resolutions of the Board of Directors of such corporation adopting the
Plans and approving and authorizing  execution,  acknowledgment  and delivery of
such  instrument  and a duly  certified  copy of a  resolution  of the  Board of
Directors of the Company  approving and consenting to the same.  Notwithstanding
the foregoing,  no Affiliate may become a party to this Agreement after a Change
in Control.

        TWENTY-FIRST:  Representations.
        ------------   ---------------
                  (a) The  Company  and the Trustee  each  acknowledge  that the
other will be relying,  and shall be entitled to rely,  on the  representations,
undertakings  and  acknowledgments  of the other as set forth in this Agreement.
The Company and the  Trustee  each agree to notify the other  promptly if any of
its  representations,   undertakings,  or  acknowledgments  set  forth  in  this
Agreement ceases to be true.

                  (b) The  Company and the Trustee  hereby  each  represent  and
warrant to the other  that it has full  authority  to enter into this  Agreement
upon the terms and  conditions  hereof and that the  individual  executing  this
Agreement  on their behalf has the  requisite  authority to bind the Company and
the Trustee to this Agreement.

        TWENTY-SECOND:  Miscellaneous.
        -------------   -------------
                  (a)  This  Agreement  shall  be  interpreted,   construed  and
enforced, and the trust hereby created shall be administered, in accordance with
the laws of the  United  States  and of the State of  Delaware.  Nothing in this
Agreement  shall be construed to subject  either the Trust created  hereunder or
the Plans to the Employee Retirement Income Security Act of 1974, as amended.

                  (b) The titles to Articles of this Agreement are placed herein
for  convenience of reference  only, and the Agreement is not to be construed by
reference thereto.

                                      -27-
<PAGE>

                  (c)      This Agreement shall bind and inure to the benefit of
the successors and assigns  of the Company and the Trustee, respectively and the
Plans.
                  (d)  This   Agreement   may  be  executed  in  any  number  of
counterparts,  each of which shall be deemed to be an original  but all of which
together  shall  constitute  but  one  instrument,  which  may  be  sufficiently
evidenced by any counterpart.

                  (e) If any  provision of this  Agreement is  determined  to be
invalid or  unenforceable  the  remaining  provisions  shall not for that reason
alone also be determined to be invalid or unenforceable.

                  IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this
Agreement  to be executed  in their  respective  names by their duly  authorized
officers as of the day and year first above written.

                                                      UCAR CARBON COMPANY INC.

                                                      By /s/ C. S. Shular
                                                        --------------------
                                                      MELLON BANK, N.A.

                                                      By /s/ Christine A. Bloom
                                                         ----------------------
                                                         Christine A. Bloom
                                                         Vice President

                                      -28-
<PAGE>

                                   SCHEDULE 1

                  1.        the UCAR Carbon Equalization Benefit Plan.

                  2.        the UCAR Carbon Supplemental Retirement Income Plan.

                  3.        the UCAR Carbon Compensation Deferral Program.

                  4.        the UCAR Carbon Enhanced Retirement Income Plan.

                  5.        Severance  Agreements  between  the   Company   and
various individuals, respectively.

                  6.        Employment  Agreement  between  the  Company and Gil
Playford.

                  7.        UCAR TCN Pension Plan.

                                      -29-

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