Document:

<PAGE>   1
                                                                    Exhibit 10.5

                       TECHNICAL CENTER SERVICES AGREEMENT

                SERVICES AGREEMENT made as of the 1st day of January 2000
between UCAR CARBON COMPANY INC., a Delaware corporation ("UCAR"), and UCAR
GRAPH-TECH INC., a Delaware corporation ("GRAPH-TECH").

                              W I T N E S S E T H :

                WHEREAS, UCAR has been engaged in the business of producing
natural, acid-treated and flexible graphite products (the "Business");

                WHEREAS, as of the date hereof (the "Closing Date"), UCAR has
transferred to GRAPH-TECH all assets related to the Business pursuant to the
Transfer Agreement effective January 1, 2000 between UCAR and GRAPH-TECH (the
"Transfer Agreement"); and

                WHEREAS, GRAPH-TECH desires to have UCAR provide certain
services to GRAPH-TECH to facilitate the transfer of the operations of the
Business to GRAPH-TECH's control and certain site services to GRAPH-TECH to
enable GRAPH-TECH to operate the Business immediately following transfer of
ownership in the same manner in which the Business was operated prior to the
transfer of ownership and UCAR is willing to provide the services on the terms
and conditions set forth herein;

                NOW, THEREFORE, in consideration of the premises,
representations and warranties and the mutual covenants and agreements contained
herein and other good, valuable and sufficient consideration, the receipt of
which is hereby acknowledged, UCAR and GRAPH-TECH (collectively, the "Parties"
and, sometimes individually, a "Party"), intending to be legally bound, hereby
agree as follows:

SECTION 1 - SERVICES TO BE PROVIDED

                1.1 As used herein, the term "Services" shall mean the services
described in Schedule 1.1 attached hereto. The parties may, at any time during
the term of this Agreement, mutually agree to amend Schedule 1.1 so as to
delete, add or modify services. Any such amendment must be in a writing signed
by both parties, except for such changes as provided for in Schedule 1.1.

                1.2 Except as otherwise provided in Schedule 1.1 attached hereto
or otherwise mutually agreed by the parties, the Services shall be provided in
the same manner, to the same extent and with the same care with which they were
provided to the Business by the other business units of UCAR prior to the date
hereof and shall be provided subject to and in accordance with the policies,
practices, procedures, standards, methods and rules of UCAR from time to time in
effect, including, without limitation, those related to occupational health and
safety, security and environmental protection. After the date hereof, except as
required by law, UCAR shall not adopt policies, practices, procedures,
standards, methods or rules which unreasonably discriminate against the Business
or modify existing policies, practices, procedures, standards, methods or rules
so as to unreasonably discriminate against the Business.
<PAGE>   2
SECTION 2 - PERIOD OF SERVICES; TERM

                2.1 Except as provided for in Schedule 1.1, GRAPH-TECH may
terminate any service and obligation to pay for any or all Services or any
category of Services upon thirty (30) days written notice to UCAR.

                2.2 The term of this Agreement shall commence on the date hereof
and shall continue for the periods specified in Schedule 1.1 or unless sooner
terminated in accordance herewith.

                2.3 Upon the termination of this Agreement, the parties shall be
released from any and all obligations hereunder; provided, however, that the
parties' respective rights and obligations under Sections 3, 4, 6, 7, 8 and 10
shall survive such termination.

SECTION 3 - COMPENSATION; PAYMENT

                3.1 GRAPH-TECH shall pay to UCAR rent and fees for the Services
(a "Fee"). The Fee shall be as specified in Schedule 1.1 and shall determined in
accordance with this Section 3.

                3.2 The Fee shall not include, and UCAR shall be separately
reimbursed by GRAPH-TECH for its payment of, (i) the cost of purchasing any
extraordinary supplies required in connection with providing the Services, (ii)
the fees, costs and charges payable to third parties in connection with the
Services (including, without limitation, postage, express delivery and messenger
charges, common carrier charges and fees and expenses payable to engineering,
accounting, law and other professional firms) and (iii) all liabilities and
obligations in respect of which the Services constitute only an administrative,
clerical or ministerial service.

                3.3 UCAR shall invoice, or cause to be invoiced, GRAPH-TECH on a
quarterly basis for the Fees and reimbursements due hereunder. Payment of each
invoice shall be due net 30 days from the date of such invoice.

SECTION 4 - LIMITATION ON REPRESENTATIONS

                THERE HAVE BEEN, ARE AND WILL BE NO REPRESENTATIONS, WARRANTIES
OR GUARANTEES BY UCAR WITH RESPECT TO THE SERVICES EXCEPT AS EXPRESSLY SET FORTH
IN THIS AGREEMENT. NO REPRESENTATION, WARRANTY OR GUARANTEE SHALL BE IMPLIED
UNDER THIS AGREEMENT OR AT LAW, INCLUDING, WITHOUT LIMITATION, WARRANTY OF
MERCHANTABILITY OR WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE AS TO THE
SERVICES.

SECTION 5 - INDEPENDENT CONTRACTOR

                UCAR shall be deemed to be an independent contractor, and not an
agent, partner or joint venturer, in connection with the provision of the
Services.

                                       2
<PAGE>   3
SECTION 6 - TAXES

                In addition to any other amounts payable hereunder, UCAR shall
promptly be reimbursed by GRAPH-TECH for any taxes, excises, imposts, duties,
levies, withholdings or other similar charges (except for taxes, excises,
imposts, duties, levies, withholdings or charges based on net income) that may
be required to be paid on account of the Services; provided, however, that no
such reimbursement shall be made to the extent any of them have been included in
the calculation of the Fees.

SECTION 7 - CLAIMS

                Receipt of any of the Services hereunder shall constitute an
unqualified acceptance of such Services and a waiver of any and all claims with
respect to such Services unless UCAR receives written notice of such claims from
GRAPH-TECH within 30 days after such receipt. In the case of delayed provision
or non-provision of any Services, any and all claims with respect to such
delayed provision or non-provision shall be waived unless written notice of such
claims is received by UCAR within 30 days after the date on which such Services
were first required to be provided. No claim resulting from the breach of this
Agreement, as to any Services provided hereunder or for delayed provision or
non-provision of any Service hereunder, whether based on negligence, strict
liability in tort or breach of warranty or on any other basis, shall be greater
in amount than the Fees for that portion of the Services in respect of which
such claim is made, and in no event will UCAR be liable to GRAPH-TECH for any
special, indirect, incidental or consequential damages or any lost profits,
whether based on negligence, strict liability in tort or breach of warranty or
on any other basis, even if informed of the possibility of such damages in
advance.

SECTION 8 - INDEMNITY

                Except as otherwise provided in the Transfer Agreement,
GRAPH-TECH shall, without any responsibility or liability of or recourse to UCAR
or its affiliates, directors, shareholders, officers, employees, agents,
consultants, representatives, successors, transferees or assignees, be solely
liable and responsible for any and all claims, liabilities, obligations, losses,
deficiencies, damages (except for civil or criminal penalties or punitive
damages) and judgments of any kind arising out of the actions or inactions of
GRAPH-TECH regardless of whom they are asserted by or against, and regardless of
whether they are known or unknown or fixed or contingent (the "Liabilities").
GRAPH-TECH shall indemnify UCAR and its affiliates, directors, shareholders,
officers, employees, agents, consultants, representatives, successors,
transferees and assignees for, and shall hold them harmless from and against,
any and all Liabilities (including, without limitation, reasonable fees and
expenses of counsel) of any kind or nature whatsoever. Notwithstanding the
obligations setout above, Graph-Tech shall not be obligated to defend or
indemnify UCAR for UCAR or UCAR's employees negligence or willful conduct.

                                       3
<PAGE>   4
SECTION 9 - FORCE MAJEURE

                UCAR shall not be liable for its failure to perform hereunder to
the extent that its performance is made impracticable, delayed or prevented, in
whole or in part, due to any occurrence beyond its reasonable control,
including, without limitation: acts of God; inclement weather; floods;
accidents; strikes; lockouts; fires; wars; equipment failures; labor disputes;
labor shortages; riots; demonstrations; sabotage; laws, ordinances, rules,
regulations, standards or decrees of governmental or other authorities, whether
valid or invalid (including, without limitation, import or export prohibitions
or priorities, requisitions, allocations and price adjustment restrictions);
inability to obtain or unavoidable delay in obtaining necessary power,
materials, facilities, services or equipment; interruption or unavoidable delay
in communication or transportation; or any other similar or dissimilar
occurrence which could have a material adverse impact on the ability of UCAR to
perform hereunder. If UCAR fails to perform hereunder as a result of any
occurrence contemplated by the preceding sentence, UCAR shall (i) give written
notice to that effect to GRAPH-TECH within 10 days after such occurrence
together with a statement setting forth reasonably full particulars concerning
such occurrence and (ii) use reasonable efforts to remedy such occurrence as
quickly as possible. The requirement that such occurrence be so remedied shall
not require the settlement of strikes, lockouts or other labor difficulties. To
the extent required by any such occurrence, the performance by both parties
hereunder shall be suspended during the continuance of any such occurrence (but
for no longer period) and this Agreement shall otherwise remain unaffected. If
at any time during the term of this Agreement such occurrence is remedied, UCAR
shall promptly notify GRAPH-TECH and any such suspension shall end.

SECTION 10 - CONFIDENTIALITY

                10.1 All confidential or proprietary data, reports, records and
other information of any kind received by GRAPH-TECH or the affiliates,
shareholders, directors, officers, employees, partners, agents, attorneys,
accountants, representatives or consultants of GRAPH-TECH from UCAR or the
shareholders, directors, officers, employees, partners, agents, attorneys,
accountants, representatives or consultants of UCAR under this Agreement or in
connection with the transactions contemplated hereby shall be treated as
confidential (collectively, "Confidential Information"). Except as otherwise
provided herein, GRAPH-TECH shall not use (and shall not permit its affiliates,
shareholders, directors, officers, partners, employees, agents, attorneys,
accountants, representatives or consultants to use) Confidential Information for
its own (or their own) benefit and shall use all reasonable efforts (and shall
cause its affiliates, shareholders, partners, directors, officers, employees,
agents, attorneys, accountants, representatives and consultants to use all
reasonable efforts) to maintain the confidentiality of Confidential Information.
If GRAPH-TECH or any of its affiliates, shareholders, directors, officers,
partners, employees, agents, attorneys, accountants, representatives or
consultants is required to disclose Confidential Information by or to any court,
any government or any governmental agency, authority or instrumentality,
GRAPH-TECH shall, prior to such

                                       4
<PAGE>   5
disclosure, immediately notify UCAR of such requirement and all particulars
related to such requirement. UCAR shall have the right, at its expense, to
object to such disclosure and to seek confidential treatment of any Confidential
Information to be so disclosed on such terms as it shall determine.

                10.2 The restrictions set forth in Section 10.1 hereof shall not
apply to the use or disclosure of Confidential Information to the extent, but
only to the extent, (i) permitted or required pursuant to any other agreement
between the Parties, (ii) necessary by GRAPH-TECH in connection with exercising
its rights or performing its duties or obligations under this Agreement or the
other agreements described in clause (i) of this sentence, (iii) contemplated by
the last 2 sentences of Section 10.1 hereof or (iv) that GRAPH-TECH can
demonstrate such Confidential Information (A) is or becomes generally available
to the public through no fault or neglect of GRAPH-TECH, (B) is received in good
faith on a non-confidential basis from a third party who discloses such
Confidential Information without violating any obligations of secrecy or
confidentiality, (C) is independently developed after the time of receipt as
shown by dated written records or (D) was already possessed at the time of
receipt as shown by prior dated written records. The restrictions set forth in
Section 10.1 hereof shall not apply to the use or disclosure by GRAPH-TECH of
Confidential Information which relates to the Business or the Assets (as such
terms are defined in the Transfer Agreement between GRAPH-TECH and UCAR
effective January 1, 2000.

SECTION 11 - NOTICES

                All notices required or permitted to be given pursuant to this
Agreement shall be given in writing, shall be transmitted by personal delivery,
by registered or certified mail, postage prepaid, or by telecopier and shall be
addressed as follows:

                When GRAPH-TECH is the intended recipient:

                  UCAR Graph-Tech
                  11709 Lakewood Avenue
                  Lakewood, Ohio, 44107
                  Attention:  President
                  Telecopy No.:  (216) 529-3888

                When UCAR is the intended recipient:

                  UCAR Carbon Company  Inc.
                  3102 West End Avenue, Suite 1100
                  Nashville, Tennessee  37203
                  Attention: General Counsel
                  Telecopy No.:  (615) 760-7785

A Party may designate a new address to which notices required or permitted to be
given pursuant to this Agreement shall thereafter be transmitted by giving
written notice to that effect to the other Party. Each notice transmitted in the
manner described in this Section 12 shall be deemed

                                       5
<PAGE>   6
to have been given, received and become effective for all purposes at the time
it shall have been (i) delivered to the addressee as indicated by the return
receipt (if transmitted by mail), the affidavit of the messenger (if transmitted
by personal delivery) or the telecopier generated confirmation (if transmitted
by telecopier) or (ii) presented for delivery to the addressee as so indicated
during normal business hours, if such delivery shall have been refused for any
reason.

SECTION 12 - GOVERNING LAW; FORUM

                The validity, interpretation, performance and enforcement of
this Agreement shall be governed by the laws of the State of Ohio (without
giving effect to the laws, rules or principles of the State of Ohio regarding
conflicts of laws). Each Party agrees that any proceeding arising out of or
relating to this Agreement or the breach or threatened breach of this Agreement
shall be commenced and prosecuted in a state court in the State of Ohio. Each
Party consents and submits to the non-exclusive personal jurisdiction of any
such court in respect of such proceeding. Each Party consents to service of
process upon it with respect to any such proceeding by registered mail, return
receipt requested, and by any other means permitted by applicable laws and
rules. Each Party waives any objection that it may now or hereafter have to the
laying of venue of any such proceeding in any such court and any claim that it
may now or hereafter have that any such proceeding in any such court has been
brought in an inconvenient forum. Each Party waives any right to trial by jury
in any such proceeding.

SECTION 13 - BINDING EFFECT; ASSIGNMENT; THIRD PARTY BENEFICIARIES

                This Agreement shall be binding upon the Parties and their
respective successors and assigns and shall inure to the benefit of the Parties
and their respective successors and permitted assigns. Neither Party shall
assign any of its rights or delegate any of its duties under this Agreement (by
operation of law or otherwise) without the prior written consent of the other
Party. Any assignment of rights or delegation of duties under this Agreement by
a Party without the prior written consent of the other Party (if required) shall
be void. No person (including, without limitation, any employee of a Party)
shall be, or be deemed to be, a third party beneficiary of this Agreement.

SECTION 14 - ENTIRE AGREEMENT

                This Agreement together with the Schedule attached hereto
constitutes the entire contract among the Parties with respect to the subject
matter hereof and cancels and supersedes all of the previous or contemporaneous
contracts, representations, warranties and understandings (whether oral or
written) by, between or among the Parties with respect to the subject matter
hereof.

SECTION 15 - AMENDMENTS

                No addition to, and no cancellation, renewal, extension,
modification or amendment of, this Agreement shall be binding upon a Party
unless such addition, cancellation, renewal, extension, modification or
amendment is set forth in a written instrument which states that it adds to,
amends, cancels, renews, extends or modifies this Agreement and which is

                                       6
<PAGE>   7
executed and delivered on behalf of each Party by an officer of such Party.

SECTION 16 - WAIVERS

                No waiver of any provision of this Agreement shall be binding
upon a Party unless such waiver is expressly set forth in a written instrument
which is executed and delivered on behalf of such Party by an officer of such
Party. Such waiver shall be effective only to the extent specifically set forth
in such written instrument. Neither the exercise (from time to time and at any
time) by a Party of, nor the delay or failure (at any time or for any period of
time) to exercise, any right, power or remedy shall constitute a waiver of the
right to exercise, or impair, limit or restrict the exercise of, such right,
power or remedy or any other right, power or remedy at any time and from time to
time thereafter. No waiver of any right, power or remedy of a Party shall be
deemed to be a waiver of any other right, power or remedy of such Party or
shall, except to the extent so waived, impair, limit or restrict the exercise of
such right, power or remedy.

SECTION 17 - REMEDIES LIMITED

                The sole and exclusive rights, powers and remedies of
GRAPH-TECH, other than such injunctive or other equitable remedies as may be
available to GRAPH-TECH, for a breach of or default under this Agreement by UCAR
shall be termination under Section 2 hereof or refund of Fees paid, as limited
in Section 7 hereof.

SECTION 18 - HEADINGS; COUNTERPARTS

                The headings set forth in this Agreement have been inserted for
convenience of reference only, shall not be considered a part of this Agreement
and shall not limit, modify or affect in any way the meaning or interpretation
of this Agreement. This Agreement may be signed in any number of counterparts,
each of which (when executed and delivered) shall constitute an original
instrument, but all of which together shall constitute one and the same
instrument. This Agreement shall become effective and be deemed to have been
executed and delivered by both of the Parties at such time as counterparts shall
have been executed and delivered by each of the Parties, regardless of whether
each of the Parties has executed the same counterpart. It shall not be necessary
when making proof of this Agreement to account for any counterparts other than a
sufficient number of counterparts which, when taken together, contain signatures
of all of the Parties.

SECTION 19 -  SEVERABILITY

                If any provision of this Agreement shall be held to be invalid,
unenforceable or illegal, in whole or in part, in any jurisdiction under any
circumstances for any reason, (i) such provision shall be reformed to the
minimum extent necessary to cause such provision to be valid, enforceable and
legal while preserving the intent of the Parties as expressed in, and the
benefits to the Parties provided by, this Agreement or (ii) if such provision
cannot be so reformed, such provision shall be severed from this Agreement and
an equitable adjustment shall be made to this Agreement (including, without
limitation, addition of necessary further provisions to this Agreement) so as to
give effect to the intent as so expressed and the benefits so provided. Such

                                       7
<PAGE>   8
holding shall not affect or impair the validity, enforceability or legality of
such provision in any other jurisdiction or under any other circumstances.
Neither such holding nor such reformation or severance shall affect or impair
the legality, validity or enforceability of any other provision of this
Agreement.

                                       8
<PAGE>   9
                IN WITNESS WHEREOF, the Parties have duly executed and delivered
this Agreement as of the date first above written.

                                          UCAR CARBON COMPANY INC.

                                          By:      /s/ Karen G. Narwold
                                             -----------------------------------
                                          Name:    Karen G. Narwold
                                          Title:   Vice President

                                          UCAR GRAPH-TECH INC.

                                          By:        /s/ John J. Wetula
                                             -----------------------------------
                                          Name:      John J. Wetula
                                          Title:     President

                                       9
<PAGE>   10
                                  SCHEDULE 1.1

                           Services to be Provided by

                            UCAR Carbon Company Inc.

                             to UCAR GRAPH-TECH Inc.

SERVICES: For a term of five (5) years beginning on the date of this Agreement
UCAR shall provide the following Services:

         1.       Site Services

         UCAR shall make the facilities in UCAR's Parma, Ohio facility
         previously utilized by UCAR to conduct the Business available to
         GRAPH-TECH for use by GRAPH-TECH in its conduct of all manner of
         research and product development as well as the production of natural,
         acid-treated and flexible graphite products (the "Business").
         GRAPH-TECH shall have full use of the space identified on the attached
         Exhibit "A". GRAPH-TECH shall not be moved from the space identified
         without its prior written consent. The Site Services shall include:

         -        the use of approximately 1,872 sq. ft. of office space, as
                  designated on the attached Exhibit "A"

         -        the use of approximately 5,160 sq. ft. of laboratory space, as
                  designated on the attached Exhibit "A"

         -        the use of approximately 864 sq. ft. of storage space, as
                  designated on the attached Exhibit "A"

         -        the use of all common areas, restrooms, cafeteria,
                  non-exclusive parking spaces, specialized laboratory
                  facilities and conference rooms (specialized laboratory
                  facilities and conference rooms as available or scheduled in
                  advance)(4,000 sq. ft. allocated for purposes of rent
                  calculation)

         -        all utilities including electricity, sewer, natural gas, HVAC,
                  potable and distilled water, compressed air, nitrogen, argon,
                  oxygen, steam and local telephone

         -        shipping and receiving

         -        plant emergency response

         -        mail distribution

         -        custodial and janitorial services

         -        duplicating, fax machines and related office services

         -        use of the cafeteria (subsidy included in rent)

                                       10
<PAGE>   11
         -        guard and security services

         -        waste hauling services

         -        computer services including local area network (LAN) and
                  support

         -        new or used office furniture in good condition and existing
                  lab equipment

                  The Rent for the Site Services shall billed at the following
                  rates:

<TABLE>
<S>                                                           <C>
                  Office and Lab Space                        $ 18.25 per square foot of occupied space

                  Storage Space                               $  5.00 per square foot of occupied space
</TABLE>

                  The Quarterly Rent for year 2000 based on the area assigned
                  above shall be:

<TABLE>
<S>                                                           <C>               <C>
                  January 1, 2000 - December 31, 2000:        $ 51,413.50       per quarter
</TABLE>

                  Because of future expansions of GRAPH-TECH's Business,
         GRAPH-TECH, from time to time, may request the use of additional space
         within the facility. Upon receipt of a request, UCAR shall use its best
         efforts to satisfy GRAPH-TECH's space requirements within UCAR's
         existing vacant space. Any additional space will be billed at the rates
         set out above.

         2.       Research and Development Services

         UCAR shall provide the same level of research and development support
         as existed prior to transfer of the business. Research shall include
         the equivalent of one full time researcher and administrative support
         for both the UCAR and GRAPH-TECH research personnel. Development shall
         include consultation by the Director of the Technical Center and such
         personnel necessary for the continued protection, maintenance and
         prosecution of patents, patent applications and other intellectual
         property/ideas generated at the site. For these services GRAPH-TECH
         shall pay a flat fee of $60,500.00 per quarter.

         3.       Site Health, Safety and Environmental Services ("HS&EP
                  Services")

         UCAR shall provide the same level of Health Safety and Environmental
         support services as were previously provided to the Business. The HS&EP
         Services shall include, among other services, full time support of site
         HS&EP personnel, the chemical inventory system and hazardous waste
         disposal. The facility shall provide at the site the services of a
         nurse and doctor, which shall be made available for all GRAPH-TECH
         personnel. GRAPH-TECH shall pay a fee in the amount of $10,000.00 per
         quarter for these services.

                                       11
<PAGE>   12
         4.       Stores Services

         UCAR shall provide a company store fully stocked with products and
         materials necessary for the operation of the Business at least to the
         same level as existed prior to the transfer of the Business. GRAPH-TECH
         shall pay a fee in the amount of $1,400.00 per quarter for these
         services.

         5.       Human Resource Services ("HR Services")

         UCAR shall provide the same level of HR Services as were previously
         provided to the Business and the GRAPH-TECH personnel located at the
         facility. HR Services shall include, among other services, all
         necessary site and corporate training, site payroll and benefit
         support, full-time support of facility HR staff and employee
         activities. GRAPH-TECH shall pay a fee in the amount of $5,250.00 per
         quarter for these services.

         6.       T.I.S. Services

         UCAR shall provide the same level of HR Services as were previously
         provided to the Business and the GRAPH-TECH personnel located at the
         facility. TIS Services shall include, among other services, fully
         updated technical library and related services, subscriptions and
         online services. GRAPH-TECH shall pay a fee in the amount of $7,500.00
         per quarter for these services.

         7.      Per Use Services

         UCAR shall provide the same level of Per Use Services as were
         previously provided to the Business and the GRAPH-TECH personnel
         located at the facility. Those Per Use Services shall include and be
         billed to GRAPH-TECH as follows:

             Analytical and Microscopy                   $   87.64 per hour

             Physical Testing                            $   76.72 per hour

             Pilot Plant with UCAR Technician            $   90.60 per hour

             Pilot Plant with GRAPH-TECH Technician      $   60.24 per hour

             High Temperature Cure Furnace               $1,560.00 per full load

         The Per Use Services shall be provided on a first-come/first serviced
         basis. Requests for Services by GRAPH-TECH shall be given equal
         priority among all such requests.

REIMBURSEMENT OF ACTUAL COSTS GRAPH-TECH shall reimburse UCAR for all actual
costs incurred related to the Services. UCAR shall provide with each quarterly
invoice an itemization of reimbursable expenses along with supporting
documentation. Reimbursable expenses shall include those expenses that would not
normally be covered with the service and

                                       12
<PAGE>   13
which are solely related to the services to the provision of services to
GRAPH-TECH including toll telephone charges, travel and other related expenses.

INCREASE IN RENT/FEES UCAR may increase the Rent and or Fees each year to
reflect actual increases in UCAR's operating costs for the facilities used by
GRAPH-TECH. UCAR may increase the rent by a percentage not to exceed the lesser
of the maximum increase charged to other tenants in the Site or five percent
(5%).

RIGHT TO AUDIT During UCAR's normal business hours for the duration of this
Agreement, and for a period of one (1) year thereafter, GRAPH-TECH shall have
access to such books and to all other records of UCAR as required to verify any
and all increases in UCAR operating costs for the facility and/or actual costs
reimbursed by GRAPH-TECH.

DISCONTINUANCE/EXTENSION OF SERVICES GRAPH-TECH, in its sole discretion, may
discontinue any of the Services in whole or in part and may relocate and move
the GRAPH-TECH Business and all of GRAPH-TECH's assets from the UCAR facilities.
GRAPH-TECH shall have the right to extend this Agreement and its use of the
facilities in one-year increments for the period through December 31, 2009;
provided, however, that UCAR may refuse to grant an extension in the event that
UCAR sells or otherwise transfers the Parma, Ohio facility. GRAPH-TECH's right
to extension may be exercised by providing written notice to UCAR at least 10
days prior to the expiration of the term.

                                       13<PAGE>   1
                                                                    Exhibit 10.6

              EMPLOYEE BENEFITS SERVICES AND LIABILITIES AGREEMENT

         Following the transfer of the Natural and Flexible Graphite Products
business of UCAR Carbon Company Inc. and its subsidiaries, ("UCAR") to UCAR
Graph-Tech Inc. ("Graph-Tech") pursuant to a Transfer Agreement between UCAR and
Graph-Tech (the "Transfer Agreement"), which transfer was effective as of
January 1, 2000, (the "Closing Date"), UCAR will maintain certain employee
benefits functions on behalf of Graph-Tech and Graph Tech's subsidiaries. This
Agreement sets forth the parties' understanding of that arrangement.

         1.       As used herein, the term "Services shall mean the services
                  described in Annex A attached hereto, which services will be
                  provided by UCAR to Graph-Tech and Graph-Tech's subsidiaries
                  hereunder with respect to the employee benefit plans listed in
                  Annex B attached hereto (collectively, the "Plans"). The
                  Services and the Plans may be added to, terminated or modified
                  from time to time by UCAR in its discretion.

         2.       The type, quality and manner of performance of the Services
                  will be the same as the type, quality and manner of
                  performance of services provided to Graph-Tech's businesses
                  prior to the Transfer; provided, however, that the parties
                  recognize that in some cases the practices, procedures and
                  methods followed in connection with providing comparable
                  services prior to the Transfer will have to be modified in
                  order to provide the Services.

         3.       Graph-Tech will pay UCAR monthly for the Services in
                  accordance with Annex C attached hereto.

         4.       In addition to the monthly payments, Graph-Tech will pay to
                  UCAR an amount equal to Graph-Tech's share of monthly costs
                  with respect to the Plans. Such costs shall be determined in
                  accordance with the current standard practices, policies and
                  procedures of UCAR. Graph-Tech's share of such costs shall be
                  determined on the same basis on which the share of such costs
                  is determined for all other business units of UCAR. The
                  present policies, practices and procedures for determining
                  such costs

1
<PAGE>   2
                  and the present basis for allocating such costs among business
                  units of UCAR are set forth in Annex D attached hereto. In the
                  event that, by mutual agreement of the parties, Graph-Tech's
                  obligation to make payments under this paragraph is
                  terminated, Graph-Tech shall nonetheless continue to be
                  obligated to pay UCAR in accordance with paragraph 3.

         5.       UCAR will compute the payments due in accordance with
                  paragraph 3 and the payments due in accordance with paragraph
                  4 and will invoice Graph-Tech monthly. Payment will be due
                  within thirty (30) days of receipt of the invoices.

         6.       This agreement shall be deemed to commence as of January 1,
                  2000 and will continue in force on the terms and conditions
                  described herein until terminated by mutual agreement of the
                  parties.

         7.       Notwithstanding anything to the contrary contained in the
                  Corporate Services Agreement dated as of January 1, 2000 by
                  and between the parties hereto (the "Service Agreement"), UCAR
                  shall continue to provide and Graph-Tech shall continue to
                  accept and pay for Payroll and Related Services under the
                  Service Agreement while Services are being provided hereunder.

         8.       THERE ARE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE
                  SERVICES TO BE PROVIDED HEREUNDER AND NO REPRESENTATION OR
                  WARRANTY SHALL BE IMPLIED UNDER THIS AGREEMENT OR AT LAW,
                  INCLUDING, WITHOUT LIMITATION, WARRANTY OF MERCHANTABILITY OR
                  WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE AS TO THE
                  SERVICES.

         9.       UCAR shall act, and shall be deemed to act, as an independent
                  contractor, and not as an agent, partner or joint venturer, in
                  connection with the Services.

         10.      In addition to any other amounts payable hereunder, Graph-Tech
                  shall promptly reimburse UCAR for any taxes, excises, imposts,
                  duties, levies, withholdings or other similar charges
                  (excepting any taxes, excise, imposts, duties, levies,
                  withholdings or charges based on net income) that may be
                  required to be paid on account of the Services; provided,
                  however, that no such reimbursement shall be made to the
                  extent any of the foregoing have been included in the
                  calculation of the compensation due

         11.      Receipt of any Service hereunder shall constitute an
                  unqualified acceptance of the Service and a waiver of any and
                  all claims with respect to such Service unless UCAR receives
                  written notice of such claims within sixty (60) days after
                  receipt of Service. In the case of failure to provide

2
<PAGE>   3
                  any Service, any and all claims with respect to such Service
                  shall be waived unless written notice of such claims is
                  received by UCAR within sixty (60) days after the date on
                  which such Service was first required to be provided. No claim
                  resulting from the breach hereunder as to any Service provided
                  or for failure to provide or delay any Service shall be
                  greater in amount than the charge for that portion of the
                  Service in respect of which such claim is made, and in no
                  event will UCAR or its subsidiaries or affiliates (other than
                  Graph-Tech and Graph-Tech's subsidiaries) be liable to
                  Graph-Tech or Graph-Tech's subsidiaries or affiliates for any
                  special, indirect, incidental or consequential damages or any
                  lost profits, whether based on negligence, strict liability in
                  tort or breach of warranty or on any other basis.

         12.      UCAR shall not be liable for its failure to perform hereunder
                  to the extent that its performance is made impracticable,
                  delayed or prevented, in whole or in part, due to any
                  occurrence beyond its reasonable control, including without
                  limitation: acts of God; inclement weather; floods; accidents;
                  strikes; lockouts; fires; wars; equipment failures; labor
                  disputes; labor shortages; riots; demonstrations; sabotage;
                  laws, ordinances, rules, regulations, standards or decrees of
                  governmental or other authorities, whether valid or invalid
                  (including, without limitation, import or export prohibitions
                  or priorities, requisitions, allocations and price adjustments
                  restrictions); inability to obtain or unavoidable delay in
                  obtaining necessary power, materials, facilities, services or
                  equipment; interruption or unavoidable delay in communication
                  or transportation; or any other occurrence which could have a
                  material adverse impact on the ability of UCAR to perform
                  hereunder. If UCAR fails to perform hereunder as a result of
                  any occurrence described in the preceding sentence, UCAR shall
                  (i) give written notice to that effect to Graph-Tech promptly
                  after an occurrence together with a statement setting forth
                  reasonably full particulars concerning such occurrence and
                  (ii) use reasonable efforts to remedy the occurrence as
                  quickly as possible. The requirement that such occurrence be
                  so remedied shall not require the settlement of strikes,
                  lockouts or other labor difficulties. To the extent required
                  by any such

3
<PAGE>   4
                  occurrence, the performance by UCAR hereunder shall be
                  suspended during the continuance of any such occurrence (but
                  for no longer period) and this agreement shall otherwise
                  remain unaffected. If at any time during the term of this
                  agreement such occurrence is remedied, UCAR shall promptly
                  notify Graph-Tech and any such suspension shall end.

         13.      Each party agrees to refrain and to cause its subsidiaries and
                  affiliates to refrain from use in any manner, and to use
                  reasonable efforts to keep confidential and to cause its
                  subsidiaries and affiliates to use reasonable efforts to keep
                  confidential, any and all information and data concerning the
                  business and affairs of the other party or its subsidiaries or
                  affiliates received as a result of this agreement, except to
                  the extent that such party can demonstrate that the
                  information or data (i) is generally available to the public
                  as evidenced by prior written publication through no act or
                  failure to act by it or its subsidiaries or affiliates, (ii)
                  was already known to its or its subsidiaries or affiliates on
                  a non-confidential basis on the date of receipt as evidence by
                  written and dated records made by it or its subsidiaries or
                  affiliates prior to the date hereof, (iii) is independently
                  developed by Graph-Tech without reference to any information
                  provided by UCAR, or (iv) is subsequently disclosed to it or
                  its subsidiaries of affiliates on a non-confidential basis by
                  a third party not having a confidential relationship with such
                  other party or its subsidiaries or affiliates with respect to
                  such information. Notwithstanding the foregoing, each of the
                  parties and their subsidiaries and affiliates shall be free to
                  disclose any such information or data to the extent, buy only
                  to the extent, (i) required by applicable law or by a
                  government in a duly authorized investigation or (ii)
                  necessary to establish a position in any litigation or any
                  arbitration or other proceeding based upon on in connection
                  with the subject matter of this agreement. Prior to any
                  disclosure pursuant to the preceding sentence, the disclosing
                  party shall give reasonable prior notice to the other party of
                  such intended disclosure and, if requested by such other
                  party, shall use all reasonable efforts to obtain a protective
                  order or similar protection for such other party. Neither
                  Graph-Tech nor any of Graph-Tech's subsidiaries shall be
                  deemed to be subsidiaries of UCAR for the purposes of this
                  paragraph.

         14.      This agreement shall be binding upon, and inure to the benefit
                  of, the parties and their respective successors and permitted
                  assigns. Except as otherwise expressly provided herein,
                  nothing contained herein shall be deemed to create any
                  third-party beneficiary rights in any individual who or entity
                  which is not a party to this agreement. Any assignment or

4
<PAGE>   5
                  delegation of this agreement by either party without the prior
                  written consent of the other party shall be void, except that
                  no such consent shall be required with respect to an
                  assignment or delegation made in connection with the sale,
                  transfer or other disposition of all or substantially all of
                  the businesses of either party or to an affiliate of the
                  party. This agreement shall survive the transfer by UCAR or
                  any or all of its direct or indirect interests in Graph-Tech.

         15.      The validity, interpretation and performance of this agreement
                  shall be governed by and construed in all respects in
                  accordance with the law of the State of Delaware, without
                  reference to its conflicts of laws rules or principles.

         16.      This agreement and the Annexes attached hereto constitute the
                  entire understanding of the parties concerning the Services to
                  be provided hereunder and cancels and supercedes all previous
                  agreements and understandings, oral or written, between the
                  parties with respect to the subject matter hereof. This
                  agreement constitutes one of the "Service Agreements" referred
                  to in Article 1.3 of Transfer Agreement. No modification of
                  this agreement or waiver of any provision hereof or right
                  hereunder will be binding upon either party unless signed in
                  writing by an authorized representative of such party.

5
<PAGE>   6
                  If the above correctly reflects your understanding respecting
         this matter, please so signify by having your authorized representative
         sign below.

                                     UCAR Carbon Company Inc.

                                     By:      /s/ Karen G. Narwold
                                        ----------------------------------------

                                     Name:             Karen G. Narwold

                                     Title:            Vice President

Agreed and Accepted:

UCAR Graph-Tech Inc.

By:      /s/ John J. Wetula
   -----------------------------
Name:             John J. Wetula

Title:            President

6
<PAGE>   7
                                Annex A: Services

A.       Benefit Plans Administration

         Design and recommend plans for management and Board approval as
         appropriate, and administer/monitor all Corporate Benefit plans. This
         includes the Health Care Plans, Pension Plan, Savings Plan, Life
         Insurance and numerous other formal benefit plans. Corporate Benefit
         Plans will also provide Retiree Services to all Graph-Tech retirees.

B.       Corporate Relocation

         Provide services to employees being transferred, new hires and
         temporary assignees by providing relocation counseling, transfer policy
         information, relocation management contacts (appraisals, realtors,
         mortgage lenders, etc.) through Prudential Relocation Management.
         Performs invoice audits. Processes reimbursements for relocation
         expenses.

C.       Benefit Plans Operations

         Processes, maintains and forwards to carriers, monthly, all
         enrollments, changes and terminations for the following plans: Basic
         Group Life, Medical, Dental, Major Medical, Retiree Medical, Medicare
         Supplement Plan (MMMSP - age 65 and over) and Long Term Disability.

7
<PAGE>   8
         Performs Savings Program processing functions, which include:
         before-tax and after-tax enrollments.

         Performs Pension Operations services, including calculating pension
         benefits, and data maintenance.

         Performs Accounting and Control functions, including recordkeeping,
         billing and financial analysis of benefit plans.

8
<PAGE>   9
                                 Annex B: Plans

         A.       Pension Plans

         -        Qualified Plans:

                  -        UCAR Carbon Retirement Plan

                  -        UCAR Carbon Savings Plan

         -        Non-Qualified Plans:

                  -        UCAR Carbon Supplemental Retirement Income Plan

                  -        UCAR Carbon Enhanced Retirement Income Plan

                  -        UCAR Carbon Equalization Benefit Plan

         B.       Savings Plans

         -        UCAR Carbon Savings Plan

         C.       Medical Plans (including Retiree Medical Plans)

         -        UCAR Carbon Medical Plan

         -        UCAR Carbon Retiree Medical Plan

         -        UCAR Carbon Medicare Supplement Plan

         D.       Dental Plans

         -        UCAR Carbon Dental Assistance Plan

9
<PAGE>   10
         E.       Life Insurance/Disability Plans

         -        UCAR Carbon Basic Life Insurance Plan

         -        UCAR Carbon Long Term Disability Plan

         -        UCAR Carbon Business Travel Accident Plan

         F.       Other Plans

         -        UCAR Carbon Employee Assistance Program

         -        UCAR Educational Refund Program

         -        UCAR Carbon Cafeteria Plan

         -        UCAR Health and Dependent Care Reimbursement Account Plan

         -        UCAR Student Loan Program

         G.       Corporate Relocation Services

         -        Corporate Homesale Agreement (Prudential Relocation
                  Management, Inc.)

         -        Relocation Consulting Services Agreement

         -        Prudential Mortgage Services Agreement

         H.       Other Direct Billings

         -        UCAR Bonus Plan (businesses' portion as directly identified)

         -        Financial Counseling Program (businesses' portion as directly
                  identified)

10
<PAGE>   11
                     Annex C: Method of Payment for Services

A.       Benefit Plans Operations and Administration

         Collection of costs is performed through a series of budget centers. At
         the beginning of each year, an allocation schedule is prepared for each
         of the individual budget centers which identifies how the actual costs
         incurred for that year are to be distributed to each of the various
         elements of Employees Plans Expense ("EPE"). Such identification is
         done on the basis of estimated time and effort or other logical basis
         of estimated costs to be incurred.

         Each month, the actual costs incurred in each of the applicable budget
         centers are distributed as per the annual schedule and entitled
         Departmental Administration. This Departmental Administration is then
         incorporated as a part of each element of Employee Plans Expense by
         Benefit Plans Accounting, and a proportionate share is allocated to
         each of the business units which receive that applicable element of
         EPE. The method of charging each business unit for EPE is covered in
         Annex D.

B.       Corporate Relocation Services

         Annually, a series of fixed-rate fees are established which are
         estimated to cover the total cost of operating the Corporate Relocation
         Department based on the

11
<PAGE>   12
         number of transferees, new hires and temporary relocations estimated to
         be administered in that year. Each transfer authorization/temporary
         assignment authorization processed generates a charge to the
         business/location to which the employee is being transferred. These
         charges, together with any associated actual costs of the Transfer
         Assistance Program and its related agreements and income tax gross-up
         procedure, are billed monthly as incurred.

12
<PAGE>   13
   ANNEX D: METHOD OF DETERMINATION AND ALLOCATION OF EMPLOYEE PLANS EXPENSES

The costs of these services will be assigned, allocated and billed based upon
methods/procedures used to bill other businesses within UCAR. The objective is
to have each business pay for its fair share of the total Benefit Plans Costs.

Pension costs consist of expenses determined under FAS 87 (actuarial valuations)
plus administration cost associated with the pension plans (including qualified
and non-qualified plans). Pension costs will be allocated to Graph-Tech prorata
based upon total straight time earnings of its employees.

Savings plan costs (Company share) consist of expenses incurred based upon
UCAR's matching contribution to the Savings plan plus administration cost
associated with the savings plan. Savings plan costs will be allocated to
Graph-Tech prorata based on the same percentage as the actual basic savings
deductions of its employees.

Active Medical costs consist of claims, administration costs associated with the
medical plan, adjustments to reserves, and reductions due to employee
contributions. Active medical costs will be allocated to Graph-Tech prorata at
the same percentage of Graph-Tech participants over total active participants in
the medical plan.

13
<PAGE>   14
Retiree Medical costs consist of expenses determined under FAS 106 (actuarial
valuations) and administration costs associated with the retiree medical plan.
Retiree medical costs will be allocated to Graph-Tech prorata based on active
headcount.

Group Life insurance costs consist of premiums paid to insurance providers,
administration costs associated with the insurance plan, and reductions due to
employee contributions. Group life insurance costs will be allocated to
Graph-Tech, prorata based on straight time earnings of all basic group life
insurance participants.

Dental costs consist of claims and administration costs associated with the
dental plan. Dental costs will be allocated to Graph-Tech prorata based on total
active headcount.

Employee assistance plan consists of fees to administer the plan. Employee
assistance costs will be allocated to Graph-Tech prorata based on total active
headcount.

Long Term disability cost consist of premiums paid to insurance providers,
administration costs associated with the insurance plan, and reductions due to
employee contributions. Long Term disability costs will be allocated to
Graph-Tech prorata based on straight time earnings of all long term disability
participants.

Other Medical costs consist of HMO premiums for participants who are in the
various HMOs. HMO costs will be allocated to Graph-Tech prorata based on active
headcount

14
<PAGE>   15
within the HMO.

Educational refund costs consist of cost to send employees to further their
education (fees, books, etc.) Educational refund costs will not be allocated,
but rather collected at corporate and charged as a part of the General Services
provided to Graph-Tech.

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}]]