Document:

EX-10.2

	 
	Ferro Corporation

Deferred Compensation Plan

for Non-Employee Directors

1

Amended and Restated Effective

January 1, 2005

Ferro Corporation

Deferred Compensation Plan 

for Non-Employee Directors

Introduction 

This document (this “Plan”) is the Ferro Corporation Deferred Compensation Plan for
Non-Employee Directors. This Plan was originally adopted and effective as of January 1, 1995,
and was most recently amended effective July 1, 2001.

This Plan is now amended and restated effective January 1, 2005, for the purpose of complying
with new Code Section 409A. Code Section 409A permits deferred compensation which is earned and
vested in taxable years beginning before January 1, 2005 to be exempt from Code Section 409A if the
plan under which the deferral is made is not materially modified after October 3, 2004.

The Corporation elects and intends to exempt from Code Section 409A the deferred compensation
which was earned and vested under the Plan as of December 31, 2004. Consistent with this election,
the Plan, as amended and restated effective January 1, 2005, is comprised of two parts:

	 	•	 	Part A, which contains the terms of the Plan as in effect on October 4, 2004
which govern deferred compensation which was earned and vested under the Plan as of
December 31, 2004 (the “Pre-2005 Plan”), and

	 	•	 	Part B, which contains the terms of the Plan which govern deferred compensation
which was earned and vested after December 31, 2004 (the “2005 Plan”).

2

Table of Contents 

Page

	 	 	 
	Part A:Pre-2005 Plan

	 	A-1
	Part B:2005 Plan

	 	B-1
	Execution Page

	 	C-1

3

Ferro Corporation 

Deferred Compensation Plan 

for Non-Employee Directors 

Part A: Pre-2005 Plan

Overview

Establishment of Component Plan 

The terms of the Plan as it existed on October 4, 2004, and which have not been materially
modified thereafter, constitute the pre-2005 component plan (the “Pre-2005 Plan”).

The Pre-2005 Plan is reproduced, as of December 31, 2004, in this Part A. It consists of the
Plan as it was amended and restated effective January 1, 1995, and as it was further amended by the
adoption of Amendment No. 1. Amendment No. 1, which was adopted effective July 1, 2001, modified
Section 2.3(a) to allow distribution in the form of installments. Prior to July 1, 2001,
distribution was provided only in a single sum.

Exempt from Code Section 409A 

Deferred compensation which is earned and vested in taxable years beginning before January 1,
2005 is permitted to be exempt from Code Section 409A if the plan under which the deferral is made
is not materially modified after October 3, 2004.

The Corporation elects and intends to exempt from Code Section 409A the deferred compensation
which was earned and vested under the Plan as of December 31, 2004, pursuant to the terms of the
Pre-2005 Plan.

Governs Only Pre-2005 Amounts 

The Pre-2005 Plan governs only those amounts that were earned and vested under the Plan as of
December 31, 2004 (the “Pre-2005 Amounts”).

Amounts under the Plan are fully vested at all times, and deemed to be invested in Stock under
the Ferro Corporation Dividend Reinvestment and Stock Purchase Plan. A Participant’s Pre-2005
Amounts equal the Participant’s account balance as of December 31, 2004 (i.e., the amount of the
payment available if the Participant exercised a right to distribution from the Plan on December
31, 2004, excluding any exercise price or other amount that must be paid by the Participant), plus
any income attributable to that amount. Income includes increases due to the appreciation, and the
accrual of other earnings such as dividends, on the underlying Stock after December 31, 2004.

Terminology 

As used in the Pre-2005 Plan, the term “Plan” refers to the Pre-2005 Plan or to the Plan, as
appropriate.

4

	 
	Ferro Corporation

Deferred Compensation Plan

for Non-Employee Directors 

Part A: Pre-2005 Plan

5

As Amended and Restated

July 1, 2001

Ferro Corporation

Deferred Compensation Plan

for Non-Employee Directors

WHEREAS, Ferro Corporation desires to establish a deferred compensation plan for
non-employee members of its Board of Directors who wish to defer all, or a part of, the fees
payable for services as members of such Board of Directors; and

WHEREAS, such deferred compensation plan was approved by Ferro Corporation on December 9,
1994;

NOW, THEREFORE, effective as of January 1, 1995, Ferro Corporation establishes the Ferro
Corporation Deferred Compensation Plan for Non-Employee Directors as hereinafter set forth.

ARTICLE I

DEFINITIONS

For the purposes hereof, the following words and phrases shall have the meanings indicated.

	1.1	 	“Account” shall mean the account established in accordance with Article II hereof to
which a Participant’s deferred Fees are credited.

	1.2	 	“Beneficiary” shall mean any person designated by a Participant in accordance with
the Plan to receive distribution of all or a portion of the remaining balance of the
Participant’s Account in the event of the death of the Participant prior to receipt by the
Participant of the Stock credited to the Participant’s Account.

	1.3	 	“Corporation” shall mean Ferro Corporation, an Ohio corporation, and its corporate
successors, including the surviving corporation resulting from any merger of Ferro Corporation
with any other corporation or corporations.

	1.4	 	“Deferral Election Agreement” shall mean (subject to the provisions of Article II
hereof) an irrevocable written election to defer Fees signed by the Director in the form
provided by the Corporation.

	1.5	 	“Director” shall mean any non-employee member of the Board of Directors of the
Corporation.

	1.6	 	“Fees” shall mean the total fees payable by the Corporation to a Director during a
Year for services rendered during such Year as a Director.

	1.7	 	“Participant” shall mean any Director who has at any time elected to defer the
receipt of Fees in accordance with Article II hereof.

	1.8	 	“Plan” shall mean this Ferro Corporation Deferred Compensation Plan for Non-Employee
Directors effective January 1, 1995 as set forth herein, together with all amendments hereto.

	1.9	 	“Stock” shall mean common stock, par value $1.00 per share, of the Corporation.

	1.10	 	“Trust” shall mean the trust maintained pursuant to the terms of the Ferro
Corporation Deferred Compensation Plan for Non-Employee Directors Trust Agreement effective as
of January 1, 1995, entered into between the Corporation and the Trustee.

	1.11	 	“Trustee” shall mean the trustee of the Trust, initially D. Thomas George, or any
successor.

	1.12	 	“Year” shall mean the calendar year.

ARTICLE II

DEFERRAL AND PAYMENT OF FEES

	2.1	 	Eligibility; Election to Defer. Any Director may elect to defer receipt of all or a
specified portion of his or her Fees for any Year in accordance with the provisions of this
Article II and become a Participant.

A Director who desires to defer receipt of all or a specified portion of his or her Fees for
any Year must complete and deliver to the Corporation a Deferral Election Agreement, no
later than the last day of the Year prior to the Year for which the Fees would otherwise be
earned and paid; provided, however, that any Director hereafter elected to the Board of
Directors of the Corporation who was not a Director on the preceding December 31 may make an
election to defer payment of Fees for the Year in which he or she is elected to the Board of
Directors by delivering such Deferral Election Agreement to the Corporation within thirty
(30) days after becoming a Director. A Director who timely delivers the Deferral Election
Agreement to the Corporation shall thereupon become a Participant. A Participant’s Deferral
Election Agreement shall continue to be effective from Year to Year until terminated or
modified by written notice of the Participant to the Corporation. A termination or
modification of an existing Deferral Election Agreement must be delivered prior to the
beginning of the Year for which such termination or modification is to be effective; and
amounts credited to the Account of a Participant prior to the effective date of such
modification or termination shall not be affected thereby.

	2.2	 	Accounts. The Corporation shall maintain an Account for each Participant to which the
Fees deferred by each Participant shall be credited. The Corporation shall thereafter, at the
time when such Fees would have been payable if such Director were not a Participant,
contribute an amount of cash equal to such deferred Fees to the Trust to enable the Trustee to
invest such cash in Stock under the Ferro Corporation Dividend Reinvestment and Stock Purchase
Plan. As provided in the Trust, the Trustee shall maintain separate accounts under the Trust
attributable to each Participant’s Account and the Trust assets (including earnings thereon)
allocated to such separate accounts shall, as provided in the Trust, be separately invested by
the Trustee in the Ferro Corporation Dividend Reinvestment and Stock Purchase Plan.

	2.3	 	Amount Deferred; Duration of Deferral. A Participant shall designate on the Deferral
Election Agreement filed pursuant to Section 2.1 the amount of his or her Fees that are to be
deferred for a Year. Such deferred Fees shall be held in the general funds of the Corporation
and shall be credited to a separate Account established in the name of such Participant in
accordance with the provisions of Section 2.2 hereof. Such deferral of Fees shall continue
until payment of the amounts credited to the Participant’s Account shall he made in accordance
with the following provisions:

	 	(a)	 	The Stock then credited to a Participant’s Account and allocated to the Trust’s
separate account thereto shall, as determined by the Compensation and Organization
Committee in its sole discretion after consultation with the Participant (or, if
applicable, with the Participant’s Beneficiary), be distributed in kind (i.e., in
            shares of Stock) to the Participant (or, if applicable, to the Participant’s
Beneficiary) either (1) in a single distribution as soon as administratively feasible
after (i) the nine (9) month anniversary of the date on which the Participant ceases to
be a Director, or (ii) the date of the Participant’s death, or (2) in substantially
equal monthly, or semiannual, or annual installments over a period not in excess of ten
(10) years commencing as soon as administratively feasible.

	 	(b)	 	In the event of the death of a Participant, the Stock then credited to his or
her Account, and allocated to the Trust’s separate account attributable thereto, shall
be distributed to the Beneficiary or Beneficiaries designated in writing signed by the
Participant in the form provided by the Corporation; in the event there is more than
one Beneficiary, such form shall include the proportion to be paid to each Beneficiary
and indicate the disposition of such share if a Beneficiary does not survive the
Participant; in the absence of any such designation, such distribution shall be divided
equally among all other Beneficiaries. A Beneficiary designation may be changed at any
time prior to the Participant’s death by the Participant’s execution and delivery of a
new Beneficiary designation form. The form on file with the Corporation at the time of
the Participant’s death which bears the latest date shall govern. In the absence of a
Beneficiary designation or the failure of any Beneficiary to survive the Participant,
the Stock credited to the Participant’s Account shall be distributed to the
Participant’s estate after the appointment of an executor or administrator. In the
event of the death of any Beneficiary after the death of a Participant, any remaining
amount of the distribution shall be distributed to the estate of such Beneficiary after
the appointment of an executor or administrator for such estate.

	2.4	 	Statement. Each Participant shall receive a statement of the Stock credited to his or
her Account not less often than annually.

	2.5	 	Taxes. In the event any taxes are required by law to be withheld or paid from any
payments made pursuant to this Plan, the Corporation or the Trustee shall deduct such amounts
from such payments and transmit such withheld amounts to the appropriate taxing authorities.

6

ARTICLE III

ADMINISTRATION

The Plan shall be administered by the Corporation as an unfunded plan that is not intended to meet
the qualification requirements of Section 401 of the Internal Revenue Code of 1986, as amended; and
all assets of the Trust shall be held by the Trustee in the name of the Trust.

The Corporation shall cause the administration of the Plan to be carried out through the person
serving as Treasurer of the Corporation from time to time who may also be the person serving as
Trustee. The Corporation shall have all such powers as may be necessary to carry out its duties
under the Plan, including the power to determine all questions relating to eligibility for and the
Stock credited to an Account, all questions pertaining to claims for benefits and procedures for
claims review, and the power to resolve all other questions arising under the Plan, including any
questions of construction. The Corporation may take such further action as the Corporation shall
deem advisable in the administration of the Plan. The actions taken and the decisions made by the
Corporation hereunder shall be final and binding upon all Participants and Beneficiaries.

The number of shares of Stock credited to a Participant’s Account (and the separate accounts
maintained by the Trustee under the Trust attributable to each Participant’s Account) and the
number of shares of Stock to be distributed to a Participant pursuant to the terms of this Plan
shall be appropriately adjusted by the Corporation (i) to reflect changes in the separate accounts
maintained by the Trustee under the Trust as a result of the Trustee’s investment in Stock pursuant
to the Ferro Corporation Dividend Reinvestment and Stock Purchase Plan, and (ii) in the event of
changes in the outstanding stock of the Corporation by reason of stock dividends, stock splits,
recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges or other
relevant changes in capitalization, and any such adjustments and determinations made by the
Corporation shall be conclusive and binding on all Participants and Beneficiaries.

ARTICLE IV

AMENDMENT AND TERMINATION

The Corporation reserves the right to amend or terminate the Plan at any time by action of its
Board of Directors or a duly authorized committee thereof; provided, however, that no such action
shall adversely affect the rights of any Participant to amounts previously credited to the
Participant’s Account.

ARTICLE V

MISCELLANEOUS

	5.1	 	Nonalienation of Account. No right or interest of any Participant in the Plan shall,
prior to actual distribution to such Participant, be assignable or transferable in whole or in
part, either voluntarily or by operation of law or otherwise, or be subject to payment of
debts of any Participant or Beneficiary by execution, levy, garnishment, attachment, pledge,
bankruptcy or in any other manner. No Participant or Beneficiary shall encumber or dispose of
the right to receive any distribution of the shares of Stock credited to his or her Account.
If a Participant or Beneficiary attempts to assign, transfer, alienate, or encumber the right
to receive the shares of Stock credited to an Account hereunder or permits the same to be
subject to alienation, garnishment, attachment, execution, or levy of any kind, then the
Corporation, in its discretion, may hold or distribute such shares or any part thereof to or
for the benefit of such Participant or Beneficiary, the Participant’s spouse, children, or
other dependents or any of them, in such manner and in such proportions as the Corporation may
select in its sole discretion. Any such application of the shares in an Account may be made
without the intervention of a guardian. The receipt by the distributee of such distributions
shall constitute a complete acquittance to the Corporation with respect thereto, and neither
the Corporation, nor any officer, member, employee, or agent thereof, shall have
responsibility for the proper application thereof.

	5.2	 	Plan Noncontractual. Nothing herein contained shall be construed as a commitment to
or agreement with any Director to continue such person’s directorship with the Corporation,
and nothing herein contained shall be construed as a commitment or agreement on the part of
the Corporation to continue the directorship or the rate or amount of Fees of any such person
for any period. All Directors shall remain subject to removal to the same extent as if this
Plan had never been put in effect.

	5.3	 	Interest of Director. The obligation of the Corporation under the Plan to make
distribution of shares of Stock credited to an Account merely constitutes the unsecured
promise of the Corporation herein, and no Participant or Beneficiary shall have any interest
in, or a lien or prior claim upon, any Stock, property or assets of the Corporation or of the
Trust. Nothing contained in this Plan shall confer upon any Director or other person any claim
or right to any distribution under the Plan except in accordance with the terms of the Plan.

	5.4	 	Claims of Other Persons. The provisions of the Plan shall in no event be construed as
giving any person, firm, or corporation any legal or equitable rights against the Corporation,
or the officers, employees, or directors of the Corporation, except any such rights as are
specifically provided for in the Plan or are hereafter created in accordance with the terms
and provisions of the Plan.

	5.5	 	Delegation of Authority. Any action to be taken by the Corporation under this Plan
may be taken by the Treasurer of the Corporation.

	5.6	 	Severability. The invalidity and unenforceability of any particular provision of the
Plan shall not affect any other provision hereof, and the Plan shall be construed in all
respects as if such invalid or unenforceable provisions were omitted hereunder.

	5.7	 	Governing Law. The provisions of the Plan shall be governed and construed in
accordance with the laws of the State of Ohio.

7

Ferro Corporation 

Deferred Compensation Plan 

for Non-Employee Directors 

Part B: 2005 Plan

Overview

Establishment of Component Plan 

 The provisions of the 2005 Plan are set forth in this Part B (the “2005 Plan”),
which is adopted and made a part of the Plan effective January 1, 2005.

Governs Accruals Subject to Code Section 409A 

The 2005 Plan governs all amounts under the Plan which are not Pre-2005 Amounts (the “409A
Accruals”). Generally, this means that the 2005 Plan governs accruals in excess of the amounts
which were earned and vested as of December 31, 2004, as those amounts are increased to include
attributable income.

The 409A Accruals are subject to the requirements of Code Section 409A, and the Corporation
intends for the 2005 Plan to comply with Code Section 409A. The 2005 Plan shall be interpreted and
administered so as to comply with Code Section 409A.

Terminology 

As used in the 2005 Plan, the term “Plan” refers to the 2005 Plan or to the Plan, as
appropriate.

8

S.CONT

	 
	Ferro Corporation

Deferred Compensation Plan

for Non-Employee Directors

Part B: 2005 Plan

9

Effective January 1, 2005

Ferro Corporation

Deferred Compensation Plan 

for Non-Employee Directors 

2005 Plan 

Introduction

This 2005 Plan is the portion of the Ferro Deferred Compensation Plan for
Non-Employee Directors which governs 409A Accruals. The purpose for the adoption of this 2005
Plan is to comply with the requirements of Code Section 409A.

The 2005 Plan is hereby added to the Plan effective January 1, 2005, as follows.

ARTICLE I

DEFINITIONS

	 	 	 
	1.1

	 	For the purposes hereof, the following words and phrases shall have the meanings indicated.

“409A Accruals” shall mean all amounts under the Plan which are not Pre-2005 Amounts.
	
 
	 	 
	1.2

	 	“2005 Plan” shall mean the provisions of the Plan set forth in Part B, which govern 409A Accruals.
	
 
	 	 

	1.3	 	“Account” shall mean the account established in accordance with Article II hereof to
which a Participant’s deferred Fees which constitute 409 Accruals are credited.

	1.4	 	“Administrator” shall mean the Corporation.

	1.5	 	“Beneficiary” shall mean any person designated by a Participant in accordance with
the Plan to receive distribution of all or a portion of the remaining balance of the
Participant’s Account in the event of the death of the Participant prior to receipt by the
Participant of the Stock credited to the Participant’s Account.

	1.6	 	“Controlled Group” shall mean the Corporation and all persons with whom the
Corporation would be considered a single employer under Code Section 414(b) or (c).

	1.7	 	“Corporation” shall mean Ferro Corporation, an Ohio corporation, and its corporate
successors, including the surviving corporation resulting from any merger of Ferro Corporation
with any other corporation or corporations.

	1.8	 	“Deferral Election Agreement” shall mean (subject to the provisions of Article II
hereof) an irrevocable written election to defer Fees signed by the Director in the form
provided by the Corporation.

	1.9	 	“Director” shall mean any non-employee member of the Board of Directors of the
Corporation.

	1.10	 	“Expiration of the Participant’s Service Contracts” shall mean the expiration of all
contracts under which a Participant performs services as a Director or independent contractor
of the Corporation.

	1.11	 	“Fees” shall mean the total fees payable, including the award of deferred stock
units, by the Corporation to a Director during a Year. Effective January 1, 2007, Fees shall
include any deferred stock units awarded to a Director during a Year.

	1.12	 	“Pre-2005 Amounts” shall mean amounts that were earned and vested under the Plan as
of December 31, 2004, as defined in the Overview to the Pre-2005 Plan.

	1.13	 	“Participant” shall mean any Director who has at any time elected to defer the
receipt of Fees in accordance with Article II hereof.

	1.14	 	“Plan” shall mean this Ferro Corporation Deferred Compensation Plan for Non-Employee
Directors, or a component plan, as appropriate.

	1.15	 	“Separation from Service” shall mean the Expiration of the Participant’s Service
Contracts where the expiration constitutes a good faith and complete termination of the
contractual relationship(s). An expiration shall not constitute a good faith and complete
termination if the Corporation anticipates a renewal of any such contractual relationship or
of the individual becoming an employee of the Corporation. For this purpose, the Corporation
shall be considered to anticipate the renewal of a contractual relationship if it intends to
contract again for the services provided under the expired contract and neither the
Corporation nor the individual has eliminated the individual as a possible provider of
services under any such new contract. Further, the Corporation is considered to intend to
contract again for the services provided under an expired contract if the Corporation’s doing
so is conditioned only upon incurring a need for the services or the availability of funds, or
both.

	1.16	 	“Stock” shall mean common stock, par value $1.00 per share, of the Corporation.

	1.17	 	“Time Required by Law” shall mean the date designated for payment under the terms of
the Plan or a later date in the same calendar year or, if later, the fifteenth (15th) day of
the third calendar month following the date designated for payment. (However, if the
Participant’s taxable year is not the calendar year, the date designated for payment under the
terms of the Plan or a later date in the Participant’s taxable year or, if later, the
fifteenth (15th) day of the third calendar month following the date designated for payment.)
Notwithstanding the foregoing, the deadline for payment shall be extended as provided in the
following paragraphs of this Section.

	 	(a)	 	If calculation of the amount of the benefit is not administratively practicable
due to events beyond the control of the Participant (or the Participant’s Beneficiary),
any date within the first taxable year of the Participant in which calculation of the
payment is administratively practicable.

	 	(b)	 	If making the payment on the date designated under the terms of the Plan would
jeopardize the ability of Ferro or any member of its Controlled Group to continue as a
going concern, the first taxable year of the Participant in which making the payment
would not have such effect.

	 	(c)	 	If there is a delay in payment by the Administrator other than with the express
or implied consent of the Participant, the first taxable year of the Participant in
which the dispute is resolved. The dispute shall be deemed resolved on the earliest
date upon which: (i) the Participant and the Administrator or Ferro enter into a
legally binding settlement, (ii) the Administrator or Ferro concedes that an amount is
payable, or (iii) the Administrator or Ferro is required to make payment pursuant to a
final non-appealable judgment or other binding decision. The foregoing provisions shall
apply only if, during the period of the dispute, the Participant accepts any portion of
the payment the Administrator or Ferro willing to make (unless acceptance will result
in relinquishment of the claim to any remaining portion), and makes prompt and
reasonable good faith efforts to collect the remaining portion of the payment which
meet the requirements of Code Section 409A (including the timely notice requirements).

	 	(d)	 	In the event the payment fails to comply with Federal securities laws or other
laws, the earliest date at which Ferro reasonably anticipates that the making of the
payment will not cause such violation.

	 	(e)	 	In the event the payment fails to be deductible under Code Section 162(m), or
meets other conditions specified by the Commissioner of the Internal Revenue Service,
such later date as may be provided under Code Section 409A.

	1.18	 	“Trust” shall mean the trust maintained pursuant to the terms of the Ferro
Corporation Deferred Compensation Plan for Non-Employee Directors Trust Agreement effective as
of January 1, 1995, entered into between the Corporation and the Trustee.

	1.19	 	“Trustee” shall mean the trustee of the Trust, initially Thomas D. George, or any
successor.

	1.20	 	“Year” shall mean the calendar year.

ARTICLE II

DEFERRAL AND PAYMENT OF FEES

	2.1	 	Eligibility; Election to Defer. Any Director may elect to defer receipt of all or a
specified portion of his or her Fees for any Year in accordance with the provisions of this
Article II and become a Participant.

A Director who desires to defer receipt of all or a specified portion of his or her Fees for
any Year must complete and deliver to the Corporation a Deferral Election Agreement, no
later than the last day of the Year prior to the Year for which the Fees would otherwise be
earned and paid or awarded; provided, however, that any Director hereafter elected to the
Board of Directors of the Corporation who was not a Director on the preceding December 31
(and who after such December 31 was not eligible as a Director or independent contractor to
participate in any other arrangement required to be aggregated with the Plan under Code
Section 409A) may make an election to defer payment of Fees for the Year in which he or she
is elected to the Board of Directors by delivering such Deferral Election Agreement to the
Corporation within thirty (30) days after becoming a Director. Any such mid-year election
by a Director shall be effective only with respect to Fees earned and paid or awarded after
the date of such election. A Director who timely delivers the Deferral Election Agreement
to the Corporation shall thereupon become a Participant. A Participant’s Deferral Election
Agreement shall continue to be effective from Year to Year until terminated or modified by
written notice of the Participant to the Corporation. A termination or modification of an
existing Deferral Election Agreement must be delivered prior to the beginning of the Year
for which such termination or modification is to be effective; and amounts credited to the
Account of a Participant prior to the effective date of such modification or termination
shall not be affected thereby (i.e., such amounts shall not be retroactively increased or
decreased by such modification or termination).

	2.2	 	Accounts. The Corporation shall maintain an Account for each Participant to which
the Fees deferred by each Participant shall be credited. The Corporation shall thereafter, at
the time when such Fees would have been payable if such Director were not a Participant,
contribute an amount of cash equal to such deferred Fees to the Trust to enable the Trustee to
invest such cash in Stock under the Ferro Corporation Dividend Reinvestment and Stock Purchase
Plan. As provided in the Trust, the Trustee shall maintain separate accounts under the Trust
attributable to each Participant’s Account and the Trust assets (including earnings thereon)
allocated to such separate accounts shall, as provided in the Trust, be separately invested by
the Trustee in the Ferro Corporation Dividend Reinvestment and Stock Purchase Plan.

	2.3	 	Amount Deferred; Duration of Deferral. A Participant shall designate on the Deferral
Election Agreement filed pursuant to Section 2.1 the amount of his or her Fees that are to be
deferred for a Year. Such deferred Fees shall be held in the general funds of the Corporation
and shall be credited to a separate Account established in the name of such Participant in
accordance with the provisions of Section 2.2 hereof. Such deferral of Fees shall continue
until payment of the amounts credited to the Participant’s Accounts shall be made in
accordance with the following provisions.

	 	(a)	 	Distribution in Kind; Commencement Date. The Stock then credited to a
Participant’s Account and allocated to the Trust’s separate account thereto shall be
distributed in kind (i.e., in shares of Stock) to the Participant (or, if applicable,
to the Participant’s Beneficiary) on the Participant’s death or, if earlier, on the
nine (9) month anniversary of the date on which the Participant incurs a Separation
from Service. Distribution shall be made on the date indicated, and in any event no
later than the Time Required by Law.

	 	(b)	 	Form of Distribution; Single Distribution unless Election for Installments
Made with Initial Deferral Agreement. A Participant’s Account shall be paid in a
single distribution on the date indicated in Section 2.3(a) above. However, at the
time a Participant’s initial Deferral Agreement is filed pursuant to Section 2.1, the
Participant shall be permitted to alternatively elect distribution in the form of
installment payments providing for payment in substantially equal monthly, quarterly,
semi-annual or annual installments over a period not in excess of ten (10) years. Such
an election shall be made in a writing filed with the Corporation at the time of the
initial Deferral Agreement, and shall specify the frequency of the installment payments
and the period over which such payments shall be made. In the event no election is
made at the time the Participant’s initial Deferral Agreement is filed, a Participant
shall be deemed to have elected at that time a single distribution form of payment. A
Participant shall, at any time, have in effect only one election regarding the form of
payment of the Participant’s Account, and such election shall govern the payment of the
whole of the Participant’s Account.

	 	(c)	 	Special Transition Election in 2006. Pursuant to the relief granted
in IRS Notice 2005-1, Q&A-19(c) and as described in the Proposed Treasury Regulations
under Code Section 409A, a Participant shall be permitted to make a new election in
2006 regarding the form of distribution of the Participant’s Account, provided that
such election is made in writing and filed with the Corporation no later than December
31, 2006. Such election shall be immediately effective; provided, however, that such
election shall not operate to change the form of distribution of amounts that otherwise
would be payable in the election year, nor will it operate to make payable in the
election year amounts that would not otherwise be payable in that year.

	 	(d)	 	Election to Change Form of Distribution. Except as provided in
Section 2.3(c), a Participant may change a previously elected form of distribution only
by filing with the Corporation a new written election. Such an election to change the
form of distribution:

	 	(i)	 	shall not become effective until the date which is the twelve
(12) months after the date on which it is filed with the Corporation;

	 	(ii)	 	shall require that the first payment made under the newly
elected form of distribution be deferred for a period of five (5) years from
the date the payment otherwise would have been made under the prior election;
and

	 	(iii)	 	shall, if related to a payment at a specified time or pursuant
to a fixed schedule, be made at least twelve (12) months prior to the date the
payment is scheduled to be paid (or, in the case of installment payments
treated as a single payment, at least twelve (12) months prior to the date the
first amount is scheduled to be paid).

For purposes of applying these provisions, the entitlement to installment payments
shall be treated as the entitlement to a single payment. By means of illustration,
an election by a Participant to change from a single distribution to installment
payments would provide that the installment payments will begin on the fifth (5th)
anniversary of the date the Participant’s Account otherwise would have been paid in
the single distribution (e.g., the installment payments would begin on the fifth
(5th) anniversary of the date which is nine (9) months after the Participant’s
Separation from Service). Similarly, an election by a Participant to change from
installment payments to a single distribution would provide that the single
distribution will be paid on the fifth (5th) anniversary of the date the first
installment payment of the Participant’s Account otherwise would have been paid
(e.g., the single distribution would be made on the fifth (5th) anniversary of the
date which is nine (9) months after the Participant’s Separation from Service). In
any case, the election to change the form of distribution will not be effective
until twelve (12) months after the new election is filed with the Corporation, and
this delayed effective date will operate to apply the Participant’s previously
elected form of distribution (and not the newly elected form of distribution) in the
event of the Participant’s Separation from Service which causes a payment under the
Plan before the expiration of the twelve (12) month period.

	 	(e)	 	Payment on Death; Designation of Death Beneficiary. In the event of
the death of a Participant, the Stock then remaining credited to his or her Account,
and allocated to the Trust’s separate account attributable thereto, shall be
distributed to the designated Beneficiary or Beneficiaries in the form of a single
distribution on the date of death or as soon as administratively feasible thereafter,
and in any event no later than the Time Required by Law. Distribution shall be made in
such single distribution regardless of the form of distribution elected by the
Participant pursuant to Section 2.3(b) or (c) above. A Participant shall designate a
Beneficiary or Beneficiaries in a writing signed by the Participant in the form
provided by the Corporation. In the event there is more than one Beneficiary, such
form shall include the proportion to be paid to each Beneficiary and indicate the
disposition of such share if a Beneficiary does not survive the Participant. In the
absence of any such designation, such distribution shall be divided equally among all
other Beneficiaries. A Beneficiary designation may be changed at any time prior to the
Participant’s death by the Participant’s execution and delivery of a new Beneficiary
designation form. The form on file with the Corporation at the time of the
Participant’s death which bears the latest date shall govern. In the absence of a
Beneficiary designation or the failure of any Beneficiary to survive the Participant,
the Stock credited to the Participant’s Account shall be distributed to the
Participant’s estate after the appointment of an executor or administrator. In the
event of the death of any Beneficiary after the death of a Participant, any remaining
amount of the distribution shall be distributed to the estate of such Beneficiary after
the appointment of an executor or administrator for such estate.

	2.4	 	Statement. Each Participant shall receive a statement of the Stock credited to his
or her Account not less often than annually.

	2.5	 	Taxes. In the event any taxes are required by law to be withheld or paid from any
payments made pursuant to this Plan, the Corporation or the Trustee shall deduct such amounts
from such payments and transmit such withheld amounts to the appropriate taxing authorities.
Further, distribution shall be made from the Plan at such time or times as the Corporation, in
its sole discretion pursuant to uniform and nondiscriminatory procedures, shall determine that
amounts are due for the payment of Federal Insurance Contributions Act taxes imposed under
Code Sections 3101, 3121(a), or 3121(v)(2) on the 409A Accruals. Such distribution, if any,
shall be made for the exclusive purpose of paying such Federal Insurance Contributions Act
taxes. In addition, distribution shall be made from the Plan at such time or times as the
Corporation, in its sole discretion pursuant to uniform and nondiscriminatory procedures,
shall determine that amounts are due for the payment of income tax at source on wages imposed
under Code Section 3401 (or the corresponding withholding provisions of applicable state,
local or foreign tax laws) as a result of the payment of the Federal Insurance Contributions
Act taxes, or are due for the payment of additional income tax at source on wages attributable
to the pyramiding Code Section 3401 wages and taxes. Such distribution, if any, shall be made
for the exclusive purpose of paying such taxes. In no event shall the amounts distributed
pursuant to this Section exceed the amounts owed for the payment of Federal Insurance
Contribution Act and the income tax withholding related to such amounts.

	2.6	 	Inability to Locate Participant or Beneficiary. If the Corporation notifies a
Participant or a Beneficiary of an entitlement to an amount under this Plan and such person or
persons fail to claim the amount or to disclose their location so that payment can be made by
the Time Required by Law, the Corporation shall direct distribution to be made on an
involuntary basis to such person or persons by the Time Required by Law. If the location of a
Participant or Beneficiary cannot be determined after a prompt, reasonable good faith effort
by the Administrator, the Administrator will direct that the amount payable to the Participant
or Beneficiary be forfeited by the Time Required by Law, and no further benefit will be
payable with respect to such Participant or Beneficiary.

	2.7	 	Distribution upon Income Inclusion under Code Section 409A and Other Acceleration
Events. The prior provisions of this Article notwithstanding, in the event the Plan
fails to meet the requirements of Code Section 409A, a Participant’s 409A Accruals shall be
distributed in an amount equal to the amount which is included in income on account of the
failure to comply with Code Section 409A.

	2.8	 	General Restriction on Distribution and Acceleration of Payment. Notwithstanding any
provision of the Plan to the contrary, a Participant’s Account shall not be distributed
earlier than the time permitted under Code Section 409A except as provided under Treasury
Regulations. Code Section 409A(a)(2) prohibits distribution earlier than a separation from
service, the date the Participant becomes disabled, death, a change in the ownership or
effective control of the corporation (or in the ownership of a substantial portion of the
assets of the corporation), or the occurrence of an unforeseeable emergency.

	2.9	 	Overpayments and Repayments. Benefits are provided only as set forth under the terms
of this Plan. Payments in excess of the amounts owed, or in advance of the time specified for
payment, are not authorized under this Plan, and the Corporation will take all reasonable
steps to ensure that the amount and timing of benefit payments are in accordance with the
Plan’s terms. In the event the Corporation determines that the benefits actually paid under
this Plan to a Participant, Beneficiary or other person exceed the benefits that were properly
payable, or were paid prior to the proper time for payment, the Corporation shall immediately
demand repayment of such excess amounts. The Participant, Beneficiary or other person is
obligated to return such excess amounts upon demand from the Corporation. In the event the
Participant, beneficiary or other person fails to return the excess amounts, the Corporation
shall exercise any available legal remedies which are consistent with the terms and purpose of
the Plan. In the event excess amounts have been paid as installment payments, to the extent
permitted under Code Section 409A, Ferro shall reduce the amount of the remaining scheduled
payments to offset the excess amounts paid.

	2.10	 	Offset. If at the time payment is to be made under this Plan the Participant or the
Beneficiary or both are indebted or obligated to the Corporation, then the payment of the
Participant’s 409A Accruals to be made to the Participant or the Beneficiary or both may, at
the discretion of the Corporation, be reduced by the amount of the indebtedness or obligation,
but only if:

	 	(a)	 	such debt is incurred in the ordinary course of the service relationship
between the Participant and the Corporation,

	 	(b)	 	in any taxable year of the Corporation the entire amount of reduction does not
exceed $5,000, and

	 	(c)	 	the reduction is made at the same time and in the same amount as the debt
otherwise would have been due and collected from the Participant.

	 	 	 	An election by the Corporation not to reduce the payment of the Participant’s 409A
Accruals will not constitute a waiver of the Corporation’s claim for such indebtedness
or obligation.

ARTICLE III

ADMINISTRATION

	3.1	 	Administration; Unfunded Plan. The Plan shall be administered by the Corporation as
an unfunded plan that is not intended to meet the qualification requirements of Section 401 of
the Internal Revenue Code of 1986, as amended; and all assets of the Trust shall be held by
the Trustee in the name of the Trust.

The Corporation shall cause the administration of the Plan to be carried out through the
person serving as Treasurer of the Corporation from time to time who may also be the person
serving as Trustee. The Corporation shall have all such powers as may be necessary to carry
out its duties under the Plan, including the power to determine all questions relating to
eligibility for and the Stock credited to an Account, all questions pertaining to claims for
benefits and procedures for claims review, and the power to resolve all other questions
arising under the Plan, including any questions of construction. The Corporation may take
such further action as the Corporation shall deem advisable in the administration of the
Plan. The actions taken and the decisions made by the Corporation hereunder shall be final
and binding upon all Participants and Beneficiaries.

	3.2	 	409A Compliance. It is the intention and purpose of the Corporation and the
Participants that this Plan shall be deemed to be at all relevant times in compliance with
Section 409A of the Code and all other applicable laws in order to have the Federal income tax
effect sought for such plans, and this Plan shall be so interpreted and is intended to be so
administered.

	3.3	 	Record Keeping. The number of shares of Stock credited to a Participant’s Account
(and the separate accounts maintained by the Trustee under the Trust attributable to each
Participant’s Account) and the number of shares of Stock to be distributed to a Participant
pursuant to the terms of this Plan shall be appropriately adjusted by the Corporation (a) to
reflect changes in the separate accounts maintained by the Trustee under the Trust as a result
of the Trustee’s investment in Stock pursuant to the Ferro Corporation Dividend Reinvestment
and Stock Purchase Plan, and (b) in the event of changes in the outstanding stock of the
Corporation by reason of stock dividends, stock splits, recapitalizations, reorganizations,
mergers, consolidations, combinations, exchanges or other relevant changes in capitalization,
and any such adjustments and determinations made by the Corporation shall be conclusive and
binding on all Participants and Beneficiaries.

	3.4	 	Trust Terms. The agreement establishing the Trust may contain any terms as the
Corporation may determine to be necessary or desirable; provided, however, that, no terms
shall provide for or permit funding that would result in income inclusion under Code Section
409A(b) including, but not limited to, terms that allow for the transfer or set aside of
assets offshore in a Trust, or which provide for assets to become restricted to the provision
of benefits in connection with a change in the financial health of the Corporation, and any
terms which so provide shall be deemed null and void. Consistent with the foregoing, the
Corporation may terminate or amend the Trust at any time, and in any manner it deems
necessary or desirable, subject to the terms of any agreement under which the Trust is
established or maintained.

ARTICLE IV

AMENDMENT AND TERMINATION

	4.1	 	Amendment and Termination. The Corporation reserves the right to amend or terminate
the Plan at any time by action of its Board of Directors or a duly authorized committee
thereof; provided, however, that no such action shall adversely affect the rights of any
Participant to amounts previously credited to the Participant’s Account.

	4.2	 	Distribution of Benefits on Plan Termination. In the event the Corporation elects to
amend, modify or terminate the Plan as provided under Section 4.1, no right to the payment of
benefits shall arise as a result. The prior provisions notwithstanding, the Corporation may,
in its discretion, provide by amendment to the Plan a right to the payment of all
Participants’ 409A Accruals as a result of the liquidation and termination of the Plan where:

	 	(a)	 	the termination and liquidation does not occur proximate to a downturn in the
financial health of the Corporation and the Controlled Group;

	 	(b)	 	the Plan and all arrangements required to be aggregated with the Plan under
Code Section 409A are terminated and liquidated;

	 	(c)	 	no payments, other than those that would be payable under the terms of the Plan
and the aggregated arrangements if the termination and liquidation had not occurred,
are made within twelve (12) months of the date the Corporation takes all necessary
action to irrevocably terminate and liquidate the Plan;

all payments are made within twenty-four (24) months of the date the Corporation
takes all necessary action to irrevocably terminate and liquidate the Plan; and

	 	(d)	 	the Corporation and the members of the Controlled Group do not adopt a new
arrangement that would be aggregated with any terminated arrangement under Code Section
409A, at any time within three (3) years following the date the Corporation takes all
necessary action to irrevocably terminate and liquidate the Plan.

Similarly, the Corporation may, in its discretion, provide by amendment to liquidate and
terminate the Plan where the termination and liquidation occurs within twelve (12) months of
a corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy
court pursuant to 11 United States Code § 503(b)(1)(A), provided that all amounts deferred
under the Plan are included in the Participants’ gross incomes in the latest of the
following years (or, if earlier, the taxable year in which the amount is actually or
constructively received):

	 	(i)	 	the calendar year in which the termination occurs;

	 	(ii)	 	the calendar year in which the amount is no longer subject to a substantial
risk of forfeiture; or

	 	(iii)	 	the first calendar year in which the payment is administratively practicable.

ARTICLE V

MISCELLANEOUS

	5.1	 	Nonalienation of Account. No right or interest of any Participant in the Plan shall,
prior to actual distribution to such Participant, be assignable or transferable in whole or in
part, either voluntarily or by operation of law or otherwise, or be subject to payment of
debts of any Participant or Beneficiary by execution, levy, garnishment, attachment, pledge,
bankruptcy or in any other manner. No Participant or Beneficiary shall encumber or dispose of
the right to receive any distribution of the shares of Stock credited to his or her Account.
If a Participant or Beneficiary attempts to assign, transfer, alienate, or encumber the right
to receive the shares of Stock credited to an Account hereunder or permits the same to be
subject to alienation, garnishment, attachment, execution, or levy of any kind, then the
Corporation, in its discretion, may hold or distribute such shares or any part thereof to or
for the benefit of such Participant or Beneficiary, the Participant’s spouse, children, or
other dependents or any of them, in such manner and in such proportions as the Corporation may
select in its sole discretion. Any such application of the shares in an Account may be made
without the intervention of a guardian. The receipt by the distributee of such distributions
shall constitute a complete acquittance to the Corporation with respect thereto, and neither
the Corporation, nor any officer, member, employee, or agent thereof, shall have
responsibility for the proper application thereof.

	5.2	 	Plan Noncontractual. Nothing herein contained shall be construed as a commitment to
or agreement with any Director to continue such person’s directorship with the Corporation,
and nothing herein contained shall be construed as a commitment or agreement on the part of
the Corporation to continue the directorship or the rate or amount of Fees of any such person
for any period. All Directors shall remain subject to removal to the same extent as if this
Plan had never been put in effect.

	5.3	 	Interest of Director. The obligation of the Corporation under the Plan to make
distribution of shares of Stock credited to an Account merely constitutes the unsecured
promise of the Corporation herein, and no Participant or Beneficiary shall have any interest
in, or a lien or prior claim upon, any Stock, property or assets of the Corporation or of the
Trust. Nothing contained in this Plan shall confer upon any Director or other person any claim
or right to any distribution under the Plan except in accordance with the terms of the Plan.

	5.4	 	Claims of Other Persons. The provisions of the Plan shall in no event be construed
as giving any person, firm, or corporation any legal or equitable rights against the
Corporation, or the officers, employees, or directors of the Corporation, except any such
rights as are specifically provided for in the Plan or are hereafter created in accordance
with the terms and provisions of the Plan.

	5.5	 	Delegation of Authority. Any action to be taken by the Corporation under this Plan
may be taken by the Treasurer of the Corporation.

	5.6	 	Severability. The invalidity and unenforceability of any particular provision of the
Plan shall not affect any other provision hereof, and the Plan shall be construed in all
respects as if such invalid or unenforceable provisions were omitted hereunder.

	5.7	 	Governing Law. The provisions of the Plan shall be governed and construed in
accordance with the laws of the State of Ohio.

10

Execution Page

To evidence this amended and restated Ferro Corporation Deferred Compensation Plan
for Non-Employee Directors, Ferro Corporation, as Plan sponsor, has caused this document to be
executed by its duly authorized officer as of this 20th day of September, 2007.

	 	 	 
	
 
	 	Ferro Corporation
	By:

	 	

	
 
	 	James C. Bays

Vice President, General Counsel

& Secretary

11EX-10.3

	 
	Ferro Corporation

Supplemental Defined Benefit Plan

for Executive Employees

1

Amended and Restated

As of January 1, 2005

Ferro Corporation

Supplemental Defined Benefit Plan 

for Executive Employees

Introduction 

This document (this “Plan”) is the Ferro Corporation Supplemental Defined Benefit
Plan for Executive Employees. This Plan was originally adopted and effective as of January 1,
1983, and was most recently amended and restated effective June 30, 2004. The Plan was frozen
effective March 31, 2006.

This Plan is now amended and restated effective January 1, 2005, for the purpose of complying
with new Code Section 409A. Code Section 409A permits deferred compensation which is earned and
vested in taxable years beginning before January 1, 2005 to be exempt from Code Section 409A if the
plan under which the deferral is made is not materially modified after October 3, 2004.

Ferro elects and intends to exempt from Code Section 409A the deferred compensation which was
earned and vested under the Plan as of December 31, 2004. Consistent with this election, the Plan,
as amended and restated effective January 1, 2005, is comprised of two parts:

	 	•	 	Part A, which contains the terms of the Plan as in effect on October 4, 2004
(and as subsequently amended) which govern deferred compensation which was earned
and vested under the Plan as of December 31, 2004 (the “Pre-2005 Plan”), and

	 	•	 	Part B, which contains the terms of the Plan which govern deferred compensation
which was earned and vested after December 31, 2004 (the “2005 Plan”).

As indicated above, the Plan was frozen effective March 31, 2006.

2

Table of Contents 

Page

	 	 	 
	Part A:Pre-2005 Plan

	 	A-1
	Part B:2005 Plan

	 	B-1
	Execution Page

	 	C-1

3

Ferro Corporation

Supplemental Defined Benefit Plan 

for Executive Employees

Part A: Pre-2005 Plan

Overview

Establishment of Component Plan 

The terms of the Plan as it existed on October 4, 2004, and which have not been materially
modified thereafter, constitute the Pre-2005 component plan (the “Pre-2005 Plan”).

The Pre-2005 Plan is reproduced, as of December 31, 2004, in this Part A. It consists of the
Plan as it was amended and restated effective June 30, 2004, and as it was further amended by the
adoption of Amendment No. 1 to freeze accruals effective March 31, 2006. Treasury Regulations
under Code Section 409A provide that an amendment to freeze accruals is not a material
modification.

Exempt from Code Section 409A 

Deferred compensation which is earned and vested in taxable years beginning before January 1,
2005 is permitted to be exempt from Code Section 409A if the plan under which the deferral is made
is not materially modified after October 3, 2004.

Ferro elects and intends to exempt from Code Section 409A the deferred compensation which was
earned and vested under the Plan as of December 31, 2004, pursuant to the terms of the Pre-2005
Plan.

Governs Only Pre-2005 Accruals 

The Pre-2005 Plan governs only those accruals that were earned and vested under the Plan as of
December 31, 2004 (the “Pre-2005 Accruals”).

A Participant’s Pre-2005 Accrual equals the present value, as of December 31, 2004, of the
amount to which the Participant would have been entitled under the Plan if the Participant
voluntarily terminated services without cause on December  31, 2004, and had received a payment of
the benefits in the form with the maximum value available from the Plan on the earliest possible
date allowed under the Plan to receive payment following the termination of services. For any
subsequent calendar year, the Pre-2005 Accrual shall increase to equal the present value of the
benefit the Participant actually becomes entitled to, determined under the terms of the Pre-2005
Plan (including applicable limits under the Code), as in effect on October 3, 2004 and not
materially modified thereafter, without regard to any further services rendered by the Participant
after December 31, 2004, or any other events affecting the amount of or the entitlement to benefits
(other than a Participant election under the terms of the Plan with respect to the time or form of
an available benefit).

Terminology 

As used in the Pre-2005 Plan, the term “Plan” refers to the Pre-2005 Plan or to the Plan, as
appropriate.

4

	 
	Ferro Corporation

Supplemental Defined Benefit Plan

for Executive Employees

Part A: Pre-2005 Plan

As Amended and Restated

June 30, 2004

5

Ferro Corporation

Supplemental Defined Benefit Plan

for Executive Employees

Introduction 

This document (this “Plan”) is the Ferro Corporation Supplemental Defined Benefit
Plan for Executive Employees. This Plan was originally adopted and effective as of January 1,
1983.

This Plan is now amended and restated effective June 30, 2004, as follows:

ARTICLE I

NAME AND PURPOSE

	1.1	 	Name. The name of this Plan is the “Ferro Corporation Supplemental Defined Benefit
Plan for Executive Employees.” (This Plan was previously known as the “Ferro Corporation
Nonqualified Retirement Plan.”)

	1.2	 	Plan Sponsor. The sponsor of this Plan is Ferro Corporation (“Ferro”), an Ohio
corporation.

	1.3	 	Purpose. This purpose of this Plan is to provide supplemental retirement benefits
for certain management and highly compensated employees of the Ferro Group Companies whose
benefits under the Qualified Plan are limited by Sections 401(a)(17) and 415 of the Code, so
that the aggregate benefits provided for each such employee by the Qualified Plan and by this
Plan will not be less than benefits that would be provided to each such employee by the
Qualified Plan but for the limitations contained in the Qualified Plan to effect compliance
with Sections 401(a)(17) and 415 of the Code.

	1.4	 	Plan for a Select Group. This Plan covers only employees of a Ferro Group Company
who are members of a “select group of management or highly compensated Participants” as
provided in Sections 201(2), 301(a)(3), 401(a)(1) and 4021(b)(6) of ERISA. Notwithstanding
any provision of this Plan to the contrary, this Plan will be administered and its benefits
limited in a manner to comply with the above cited sections of ERISA.

	1.5	 	Not a Funded Plan. Ferro intends that this Plan be deemed to be “unfunded” for tax
purposes as well as for purposes of Title I of ERISA. Notwithstanding any provision of this
Plan to the contrary, this Plan will be administered in a manner so that it is deemed
“unfunded.”

ARTICLE II

DEFINITIONS AND INTERPRETATION

	2.1	 	Definitions. Appendix A sets forth the definitions of certain terms used in this
Plan. Those terms shall have the meanings set forth on Appendix A where used in this Plan and
identified with initial capital letters.

	2.2	 	General Rules of Construction. For purposes of interpreting this Plan,

	 	(A)	 	the masculine gender will include the feminine and neuter, and vice versa, as
the context requires;

	 	(B)	 	the singular number will include the plural, and vice versa, as the context
requires;

	 	(C)	 	the present tense of a verb will include the past and future tenses, and vice
versa, as the context requires; and

	 	(D)	 	as provided under Article VIII, the Administrator retains the power and duty to
interpret this Plan and resolve ambiguities.

ARTICLE III

PARTICIPATION

	3.1	 	Eligibility. In order to be eligible to participate in this Plan, Ferro must
determine that an individual is:

	 	(A)	 	in a select group of management or highly compensated employees as set forth in
Section 1.4;

	 	(B)	 	a participant in the Qualified Plan; and

	 	(C)	 	a participant in the Qualified Plan whose benefit payable under the Qualified
Plan is limited by the provisions in the Qualified Plan to effect compliance with
Sections 401(a)(17) or 415 of the Code or the elimination of the Regular Compensation
Formula under the Qualified Plan.

	3.2	 	Participation. An individual who is eligible to participate in this Plan will become
a Participant in this Plan immediately on the date that he satisfies the eligibility
requirements in Section 3.1.

ARTICLE IV

PLAN BENEFITS

	4.1	 	Plan Benefits Conditioned on Noncompetition Agreement. The Plan benefits set forth
in this Article IV payable to Participants whose employment with all Ferro Group Companies
terminates on or after January 1, 2001, shall be conditioned upon (i) Ferro’s receipt of a
Noncompetition Agreement signed by the Participant, and (ii) the Participant’s continual
compliance with the terms and conditions of such Noncompetition Agreement; provided, however,
the requirement that a Participant sign and continually comply with the terms and conditions
of such Noncompetition Agreement shall not apply to any Participant whose employment
terminates either (i) as a result of the Participant’s death prior to the commencement of Plan
benefits, or (ii) following a Change in Control. If the Participant fails to so continually
comply, then all of the Participant’s benefits (including, without limitation, benefits to
such employee’s Participant’s Qualified Spouse or designated beneficiary or beneficiaries)
under this Plan shall be automatically forfeited and repaid to Ferro as provided in Section
10.19 hereof.

	4.2	 	Normal and Early Retirement. A Participant will receive a normal or early retirement
benefit in the amount set forth in Section 4.2(A) and in the manner and form of payment set
forth in Section 4.2(B).

	 	(A)	 	Amount. Subject to the provisions of Section 4.4, the Plan benefit
payable to a Participant upon termination of employment after eligibility for an early
or normal retirement benefit under the Qualified Plan is the excess of (a) the amount
of the benefit that would have been payable to the Participant under the Qualified Plan
upon normal or early retirement but for the Qualified Plan limitations pertaining to
Code Sections 401(a)(17) and 415 and the elimination of the Regular Compensation
Formula under the Qualified Plan over (b) the amount of the benefit that is actually
paid, or would be payable, to the Participant upon normal or early retirement under the
provisions of the Qualified Plan. Notwithstanding the foregoing, the calculation of an
early retirement benefit for a Participant who is a Ferro officer elected by Ferro’s
Board of Directors shall be determined in accordance with the early retirement factors
in the following column labeled “Special Factors” with the result that there shall be
no benefit reduction due to age for retirement on or after age 60:

	 	 	 	 	 
	Early Retirement Factors
	Age	 	Special Factors
	 

	 	 	 	 
	65

	 	 	1.00	 
	 

	 	 	 	 
	64

	 	 	1.00	 
	 

	 	 	 	 
	63

	 	 	1.00	 
	 

	 	 	 	 
	62

	 	 	1.00	 
	 

	 	 	 	 
	61

	 	 	1.00	 
	 

	 	 	 	 
	60

	 	 	1.00	 
	 

	 	 	 	 
	59

	 	 	0.94	 
	 

	 	 	 	 
	58

	 	 	0.88	 
	 

	 	 	 	 
	57

	 	 	0.82	 
	 

	 	 	 	 
	56

	 	 	0.76	 
	 

	 	 	 	 
	55

	 	 	0.70	 
	 

	 	 	 	 

	 	(B)	 	Manner and Form of Payment. The benefit provided under Section 4.2(A)
for each Participant who terminates employment with a Ferro Group Company after
eligibility for an early or normal retirement benefit under the Qualified Plan, shall
be paid in the form of a lump sum cash payment that is 50% or 100% of the commuted
present value as determined by the Qualified Plan’s actuary using the Present Value
Factors of the benefit determined under Section 4.2(A) of this Plan; provided such
Participant’s Qualified Spouse consents in writing to such lump sum cash payment. If
such Participant’s Qualified Spouse does not consent to the 100% or 50% commuted
present value payment or consents to the 50% commuted present value payment, then such
Participant’s remaining benefit under this Plan shall be in the form of monthly
payments paid under the Qualified Plan commencing with the month in which benefit
payments from the Qualified Plan commence and continuing to and including the month in
which such employee’s death occurs, with a minimum guarantee of 120 monthly payments
with such deceased Participant’s Qualified Spouse (or properly designated beneficiary
or beneficiaries) receiving for the number of months left in such 120-month period a
monthly benefit under this Plan equal to the benefit the deceased Participant was
receiving prior to death under this Plan. If a deceased Participant’s surviving
Qualified Spouse under the Qualified Plan is the beneficiary of the 120 monthly
payments, a supplemental monthly benefit under this Plan equal to one-half of the
monthly benefit under this Plan paid for the 120-month period, shall be payable to the
surviving Qualified Spouse commencing with the month following the later of the date of
such employee’s death or the end of the 120-month period, and continuing to and
including the month in which the surviving Qualified Spouse’s death occurs.

	4.3	 	Disability. A Participant will receive a disability benefit in the amount set forth
in Section 4.3(A) and in the manner and form of payment set forth in Section 4.3(B).

	 	(A)	 	Amount. If a Participant becomes totally and permanently disabled and
receives a disability retirement benefit from the Qualified Plan, the benefit payable
to the Participant under this Plan is a monthly amount equal to the excess of (a) the
amount of the monthly disability retirement benefit under the Qualified Plan that would
have been payable to the Participant but for the limitations pertaining to Code
Sections 401(a)(17) and 415 and the elimination of the Regular Compensation Formula
under the Qualified Plan, over (b) the amount of the monthly disability retirement
benefit that is actually paid to the Participant under the provisions of the Qualified
Plan. The monthly benefit payable under this Plan terminates upon the earlier of the
Participant’s recovery from the disability, death, or attainment of age 65; and,
thereafter, the applicable provisions of this Article IV shall apply.

	 	(B)	 	Manner and Form of Payment. The benefit provided under this Plan for
each Participant who becomes totally and permanently disabled and receives a disability
retirement benefit from the Qualified Plan, shall be paid in the form of monthly
payments payable under the Qualified Plan commencing with the month in which benefit
payments from the Qualified Plan commence and continuing to and including the month in
which the earlier of the Participant’s recovery from the disability, his death or
attainment of age 65 occurs.

	4.4	 	Death. A Qualified Spouse (or properly designated beneficiary or beneficiaries) or
Beneficiary will receive a death benefit in the amount set forth in Section 4.4(A) and in the
manner and form of payment set forth in 4.4(B).

	 	(A)	 	Amount. If a Participant dies before the commencement of Plan benefits
under this Plan (other than monthly disability benefits under this Plan) and a Primary
Death Benefit is payable from the Qualified Plan as a result of such employee’s death,
the benefit payable under this Plan to the Participant’s Qualified Spouse (or properly
designated beneficiary or beneficiaries) is the commuted present value of the excess of
(a) the amount of the Primary Death Benefit, and supplemental spouse’s benefit if such
employee’s Qualified Spouse is the beneficiary, that would have been payable under the
Qualified Plan but for the limitations pertaining to Code Sections 401(a)(17) and 415
and the elimination of the Regular Compensation Formula under the Qualified Plan, over
(b) the amount of the Primary Death Benefit, and supplemental spouse’s benefit if such
employee’s Qualified Spouse is the beneficiary, that is actually payable under the
provisions of the Qualified Plan.

	 	(B)	 	Manner and Form of Payment. The benefit provided under this Plan for
the deceased Participant’s Qualified Spouse or properly designated beneficiary or
beneficiaries shall be paid in the form of a single lump sum cash payment that is the
commuted present value as determined by the Qualified Plan’s actuary using the Present
Value Factors of the benefit determined under Section 4.4(A) of this Plan if the
Participant’s Qualified Spouse (or properly designated beneficiary or beneficiaries)
consents in writing to such lump sum cash payment. If the Participant’s Qualified
Spouse or properly designated beneficiary or beneficiaries does not or do not so
consent, then the deceased Participant’s benefits under this Plan shall be in the form
of monthly payments commencing with the month in which benefit payments from the
Qualified Plan commence and continuing for 120 monthly payments with the deceased
Participant’s Qualified Spouse (or properly designated beneficiary or beneficiaries)
receiving such 120 monthly payments. If the deceased Participant’s surviving Qualified
Spouse is the beneficiary of the 120 monthly payments, a supplemental monthly benefit
under this Plan equal to one-half of the monthly benefit paid for the 120-month period
shall be payable to the surviving Qualified Spouse (if the Qualified Spouse is living
at the end of the 120-month period) commencing with the month following the end of the
120-month period, and continuing to and including the month in which the surviving
Qualified Spouse’s death occurs.

	4.5	 	Other Termination of Employment. A participant will receive a deferred vested
benefit in the amount set forth in Section 4.5(A) and in the manner and form of payment set
forth in 4.5(B).

	 	(A)	 	Amount. If a Participant terminates employment with all Ferro Group
Companies other than as provided in Sections 4.2, 4.3, or 4.4 of this Plan, the benefit
payable to the Participant under this Plan is the commuted present value (provided the
Participant’s Qualified Spouse consents as described in Section 4.5(B)) of the excess
of (a) the amount of the Qualified Plan’s deferred vested benefit that the Participant
would have accrued but for the limitations pertaining to Code Sections 401(a)(17) and
415 and the elimination of the Regular Compensation Formula under the Qualified Plan
over (b) the deferred vested benefit that the Participant actually accrued under the
provisions of the Qualified Plan.

	 	(B)	 	Manner and Form of Payment. The benefit provided under this Plan for
each Participant shall be paid in the form of a single lump sum cash payment that is
the commuted present value as determined by the Qualified Plan’s actuary using the
Present Value Factors of the benefit determined under Section 4.5(A) if the
Participant’s Qualified Spouse consents in writing to such lump sum cash payment. If
the Participant’s Qualified Spouse does not consent, the Participant’s benefits under
this Plan shall be in the form of monthly payments commencing with the month in which
benefit payments from the Qualified Plan commence and continuing to and including the
month in which the Participant’s death occurs, with a minimum guarantee of 120 monthly
payments with the deceased Participant’s Qualified Spouse (or properly designated
beneficiaries or beneficiary) receiving for the number of months left in such 120-month
period a monthly benefit under this Plan equal to the benefit the deceased Participant
was receiving prior to death. If the deceased Participant’s surviving Qualified Spouse
under the Qualified Plan is the beneficiary of the 120 monthly payments, a supplemental
monthly benefit under this Plan equal to one-half of the monthly benefit under this
Plan paid for the 120-month period shall be payable to the surviving Qualified Spouse
commencing with the month following the later of the date of the Participant’s death or
the end of the 120-month period, and continuing to and including the month in which the
surviving Qualified Spouse’s death occurs.

	4.6	 	Discretionary Benefit Increases. Ferro reserves the right, in its sole discretion
and determination, to increase the amount of benefits payable to any person under this Plan to
offset United States federal estate taxes withheld or paid from benefit payments under this
Plan to Qualified Spouses who are not citizens of the United States.

	4.7	 	Discretionary Commutation of Benefits. Notwithstanding anything contained in this
Plan to the contrary, Ferro reserves the right, in its sole discretion, to commute any
benefits that are being paid in the form of monthly payments, and to pay, in lieu of the
monthly payments, a single, lump sum cash payment equal to the present value of a person’s
monthly benefit payments, as determined by the Qualified Plan’s actuary, using the Present
Value Factors.

	4.8	 	Change in Control. If a Change in Control occurs, then all of the obligations of
Ferro under this Plan shall continue to be enforceable against Ferro and any successor.
Notwithstanding any provision of Article IV to the contrary, if any person entitled to
benefits under this Plan is not actively employed by a Ferro Group Company at the time a
Change in Control occurs, that person shall immediately receive a single, lump sum cash
payment equal to the commuted present value of that person’s monthly benefit payments under
this Plan (whether or not such are then in pay status), as determined by the Qualified Plan’s
actuary, using the Present Value Factors.

	4.9	 	Protective Distributions. If the Administrator determines, in its sole discretion,
that a Participant is not, or may not be, a member of a “select group of management or highly
compensated employees” within the meaning of Section 201(2), 301(a)(3), 401(a)(1) or
4021(b)(6) of ERISA, then the Administrator may, in its sole discretion, terminate the
Participant’s participation in this Plan, and distribute all benefit amounts under this Plan
in a single lump sum payment equal to the commuted present value of that person’s monthly
benefit payments under this Plan (whether or not they are then in pay status), as determined
by the Qualified Plan’s actuary, using the Present Value Factors. Any distribution under this
Section will be made at the time the Administrator determines in its sole discretion.

	4.10	 	Tax Withholding. A Ferro Group Company may withhold, from any payment made by it
under this Plan, the amount or amounts as may be required for purposes of complying with the
tax withholding or other provisions of the Code or the Social Security Act or any state or
local income or employment tax act or for purposes of paying any estate, inheritance or other
tax attributable to any amounts payable hereunder.

	4.11	 	Inability to Locate Participant. If a Ferro Group Company or the Administrator
notifies a Participant or a Qualified Spouse (or properly designated beneficiary or
beneficiaries) of an entitlement to an amount under this Plan and the Participant or the
Qualified Spouse (or properly designated beneficiary or beneficiaries) fails to claim the
amount or to disclose the location of the Participant or the Qualified Spouse (or properly
designated beneficiary or beneficiaries) within three years thereafter, then, except as
otherwise required by law, if the location of one or more of the next of kin of the
Participant or the Qualified Spouse (or properly designated beneficiary or beneficiaries) is
known to the Ferro Group Company or the Administrator, the Administrator may direct
distribution of the amount to any one or more or all of the next of kin, and in such
proportions as the Administrator, in its sole discretion, determines. If the location of none
of the foregoing persons can be determined, the Administrator will direct that the amount
payable to the Participant or the Qualified Spouse (or properly designated beneficiary or
beneficiaries) be forfeited. If, after the forfeiture, the Participant or the Qualified
Spouse (or properly designated beneficiary or beneficiaries) later claims the benefit under
this Plan, then the benefit will be reinstated without interest or earnings from the date of
forfeiture. If a benefit payable to a Participant or a Qualified Spouse (or properly
designated beneficiary or beneficiaries) that cannot be located is subject to escheat under
state law, then no further benefit will be payable with respect to any Participant for whom
payment was made by the Administrator according to the escheat provisions of state law.

ARTICLE V

RIGHTS OF PARTICIPANTS

	5.1	 	Creditor Status of Participants. The benefits payable under this Plan shall be
merely an unfunded, unsecured promise of the Ferro Group Company (by which the Participant is
employed) to make benefit payments in the future and shall be liabilities solely against the
general assets of such Ferro Group Company. Except as may be provided under the terms of a
Trust which may be established pursuant to Article VI, neither Ferro nor any other Ferro Group
Company shall be required to segregate, set aside or escrow any corporate assets to meet its
obligations under this Plan. With respect to any benefits payable under this Plan, a
Participant or a Qualified Spouse (or properly designated beneficiary or beneficiaries) will
have the status of general unsecured creditors of the Ferro Group Company by which the
Participant is employed, and may look only to that Ferro Group Company and its general assets
for payment of the benefits.

	5.2	 	Rights with Respect to the Trust. Any trust, and any assets held thereby to assist
Ferro or other Ferro Group Company in meeting its obligations under this Plan, will in no way
be deemed to controvert the provisions of Section 5.1 above.

	5.3	 	Investments. In Ferro’s sole discretion, the Ferro Group Companies may acquire
insurance policies, annuities or other financial vehicles for the purpose of providing future
assets of the Ferro Group Companies to meet their anticipated liabilities under this Plan.
Such policies, annuities or other investments, shall at all times be and remain unrestricted
general property and assets of the Ferro Group Companies or property of a trust established
pursuant to Article VI of this Plan. Participants and Qualified Spouses (or properly
designated beneficiaries) will have no rights, other than as general creditors, with respect
to any such policies, annuities or other acquired assets.

ARTICLE VI

TRUST

	6.1	 	Establishment of Trust. Notwithstanding any other provision or interpretation of
this Plan, Ferro may establish a Trust in which to hold cash, insurance policies or other
assets that may be used to make, or reimburse Ferro or any other Ferro Group Company for,
payments to the Participants or Qualified Spouses (or properly designated beneficiary or
beneficiaries) of all or part of the benefits under this Plan. Any Trust assets shall at all
times remain subject to the claims of general creditors of Ferro or the Ferro Group Company in
the event of the insolvency of Ferro or the Ferro Group Company as more fully described in the
Trust.

	6.2	 	Obligation of Ferro. Notwithstanding the fact that a Trust may be established under
Section 6.1, the Ferro Group Companies shall remain liable for paying the benefits under this
Plan. However, any payment of benefits to a Participant or a Qualified Spouse (or a properly
designated beneficiary or beneficiaries) made by a Trust will satisfy the appropriate Ferro
Group Company’s obligation to make payment to such person under this Plan.

	6.3	 	Trust Terms. A Trust established under Section 6.1 may contain any terms as Ferro
may determine to be necessary or desirable. Ferro may terminate or amend a Trust established
under Section 6.1 at any time, and in any manner it deems necessary or desirable, subject to
the terms of any agreement under which any Trust is established or maintained.

ARTICLE VII

ADMINISTRATION AND CLAIMS PROCEDURE

	7.1	 	Administrator. The Administrator will be Ferro, acting by and through Ferro’s
Corporate Human Resources Department, unless the Board of Directors, acting itself or through
an appropriate committee designates otherwise.

	7.2	 	General Rights, Powers, and Duties of Administrator. The Administrator will be the
Plan Administrator under ERISA. The Administrator will be responsible for the general
administration of this Plan and will have all powers as may be necessary to carry out the
provisions of this Plan and may, from time to time, establish rules for the administration of
this Plan and the transaction of this Plan’s business. In addition to any powers, rights and
duties set forth elsewhere in this Plan, it will have the following powers and duties:

	 	(A)	 	To enact rules, regulations, and procedures and to prescribe the use of such
forms as it deems advisable;

	 	(B)	 	To appoint or employ agents, attorneys, actuaries, accountants, assistants or
other persons (who may also be Participants in this Plan or be employed by or represent
a Ferro Group Company) at the expense of the Ferro Group Companies, as it deems
necessary to keep its records or to assist it in taking any other action authorized or
required under this Plan;

	 	(C)	 	To interpret this Plan, and to resolve ambiguities, inconsistencies and
omissions, to determine any question of fact, to determine the right to benefits of,
and the amount of benefits, if any, payable to, any person in accordance with the
provisions of this Plan and resolve all questions arising under this Plan;

	 	(D)	 	To administer this Plan in accordance with its terms and any rules and
regulations it establishes; and

	 	(E)	 	To maintain records concerning this Plan as it deems sufficient to prepare
reports, returns and other information required by this Plan or by law; and

	 	(F)	 	To direct a Ferro Group Company to pay benefits under this Plan, and to give
other directions and instructions as may be necessary for the proper administration of
this Plan.

Any decision, interpretation or other action made or taken by the Administrator arising out
of or in connection with this Plan, will be within the absolute discretion of the
Administrator, and will be final, binding and conclusive on Ferro, all other Ferro Group
Companies, and all Participants, Qualified Spouses and Beneficiaries and their respective
heirs, executors, administrators, successors and assigns. The Administrator’s
determinations under this Plan need not be uniform, and may be made selectively among
Participants, whether or not they are similarly situated.

	7.3	 	Information to Be Furnished to the Administrator. A Ferro Group Company will furnish
the Administrator with such data and information as it may reasonably require. The records of
a Ferro Group Company will be determinative of each Participant’s period of employment,
termination of employment, personal data, and data regarding the Participant’s benefit under
the Qualified Plan. Participants, Qualified Spouses (and properly designated beneficiaries)
will furnish to the Administrator such evidence, data or information and execute such
documents as the Administrator requests.

	7.4	 	Claims for Benefits. A Participant or Qualified Spouse (or properly designated
beneficiary or beneficiaries) will make all claims for payment under his Plan in writing to
the Administrator in the manner prescribed by the Administrator. The Administrator will
process each claim and determine entitlement to benefits within 90 days after the
Administrator receives a completed application for benefits (or within 45 days if the
application for benefits is based on Disability). If the Administrator needs an extension of
time for processing, then the Administrator will notify the claimant before the end of the
initial 90-day or 45-day period (as the case may be). The extension notice will indicate the
special circumstances requiring an extension of time and the date as of which the
Administrator expects to render the final decision. In no event will such an extension exceed
90 days from the end of the initial period (or exceed 30 days from the end of the initial
period if the claim is based on Disability unless notice is again given within the 30-day
extended period and the second extended period may not exceed an additional 30 days).

	7.5	 	Denial of Benefit. If a claim is wholly or partially denied by the Administrator,
then the Administrator will notify the claimant of the denial of the claim in a writing
delivered in person or mailed by first class mail to the claimant’s last known address. The
notice of denial will contain:

	 	(A)	 	the specific reason or reasons for denial of the claim;

	 	(B)	 	a reference to the relevant Plan provisions upon which the denial is based;

	 	(C)	 	a description of any additional material or information necessary for the
claimant to perfect the claim, together with an explanation of why the material or
information is necessary; and

	 	(D)	 	an explanation of this Plan’s claim review procedure.

If no notice is provided, the claim will be deemed denied. The interpretations,
determinations and decisions of the Administrator will be final and binding upon all persons
with respect to any right, benefit and privilege hereunder, subject to the review procedures
set forth in this Article.

	7.6	 	Request for Review of a Denial of a Claim for Benefits. Any claimant or any
authorized representative of the claimant whose claim for benefits under this Plan has been
denied or deemed denied, in whole or in part, may upon written notice to the Appeals Committee
request a review by the Appeals Committee of the denial of the claim. The claimant will have
60 days from the date the claim is deemed denied or 60 days from receipt of the notice denying
the claim, as the case may be (or, in the case of a claim for benefits based upon Disability,
180 days from the date the claim is deemed denied or 180 days from receipt of the notice
denying the claim, as the case may be), in which to request a review by written application
delivered to the Appeals Committee, which must specify the relief requested and the reason
such claimant believes the denial should be reversed.

	7.7	 	Appeals Procedure. The Appeals Committee will review the facts and relevant documents
including this Plan, and interpret the facts and relevant documents including this Plan to
render a decision on the claim. The review may be of written briefs submitted by the
claimant, or at a hearing, or by both, as deemed necessary or appropriate by the Appeals
Committee. Any hearing will be held in the main office of Ferro, or such other location as
the Appeals Committee may select, on the date and at the time as the Appeals Committee
designates by giving at least 15-days’ notice to the claimant, unless the claimant accepts
shorter notice. The notice will specify that the claimant must indicate in writing, at least
five days in advance of the hearing, the claimant’s intention to appear at the appointed time
and place, or the hearing will be automatically cancelled. The reply will specify any other
persons who will accompany the claimant to the hearing, or such other persons will not be
admitted to the hearing. The Appeals Committee will make every effort to schedule the hearing
on a day and at a time that is convenient to both the claimant and the Appeals Committee. The
claimant, or his duly authorized representative, may review all pertinent documents relating
to the claim in preparation for the hearing and may submit issues and comments in writing
before or during the hearing.

	7.8	 	Decision Upon Review of Denial of Claim for Benefits. In making its decision, the
Appeals Committee will have full power and discretion to interpret this Plan, to resolve
ambiguities, inconsistencies and omissions, to determine any question of fact, and to
determine the right to benefits of, and the amount of benefits, if any, payable to, any person
in accordance with the provisions of this Plan. The Appeals Committee will render a decision
on the claim reviewed no more than 60 days after the receipt of the claimant’s request for
review (or no more than 45 days where the claim is based on Disability), unless special
circumstances (such as the need to hold a hearing) require an extension of time, in which case
the 60-day period may be extended up to 120 days (or the 45-day period may be extended up to
90 days in the case of a claim based on Disability). The Appeals Committee will provide
written notice of its decision to the claimant within the time frame specified. The notice
will include the specific reasons for the decision and contain specific references to the
relevant Plan provisions upon which the decision is based. If notice of the decision is not
provided within the time frame specified, the claim will be deemed denied on review. The
decision of the Appeals Committee will be final and binding in all respects on the
Administrator, the Ferro Group Company and claimant involved.

	7.9	 	Establishment of Appeals Committee. The Chief Executive Officer of Ferro will
appoint three or more persons to serve as members of the Appeals Committee. The Chief
Executive Officer may appoint one Appeals Committee to hear all appeals of denied benefits
that arise under this Plan, or may appoint a new Appeals Committee each time an Appeals
Committee is needed to hear an appeal of denied benefits that arises under this Plan. The
members of the Appeals Committee will remain in office at the will of the Chief Executive
Officer, and the Chief Executive Officer may remove any of the members with or without cause.
A member of the Appeals Committee may resign upon written notice to the remaining member or
members of the Appeals Committee and to the Chief Executive Officer, respectively. The fact
that a person is a Participant or a former Participant or a prospective Participant will not
disqualify that person from acting as a member of the Appeals Committee. No member of the
Appeals Committee will be disqualified from acting on any question because of the member’s
interest in the question, except that no member of the Appeals Committee may act on any claim
which the member has brought as a Participant, former Participant, Qualified Spouse or
beneficiary under this Plan. In case of the death, resignation or removal of any member of
the Appeals Committee, the remaining members will act until a successor-member is appointed by
the Chief Executive Officer. At the Administrator’s request, the Chief Executive Officer will
notify the Administrator in writing of the names of the members of the Appeals Committee, of
any and all changes in the membership of the Appeals Committee, of the member designated as
Chairman, and the member designated as Secretary, and of any changes in either office. Until
notified of a change, the Administrator will be protected in assuming that there has been no
change in the membership of the Appeals Committee or the designation of Chairman or of
Secretary since the last notification was filed with it. The Administrator will be under no
obligation at any time to inquire into the membership of the Appeals Committee or its
officers. All communications to the Appeals Committee will be addressed to its Secretary at
the address of the Company.

	7.10	 	Operation of the Appeals Committee. On all matters and questions, the decision of a
majority of the members of the Appeals Committee will govern and control. A meeting need not
be called or held to make any decision. The Appeals Committee will appoint one of its members
to act as its Chairman and another member to act as Secretary. The terms of office of these
members will be determined by the Appeals Committee, and the Secretary and/or Chairman may be
removed by the other members of the Appeals Committee for any reason which such other members
may deem just and proper. The Secretary will do all things directed by the Appeals Committee.
Although the Appeals Committee will act by decision of a majority of its members as provided
above, in the absence of written notice to the contrary, every person may deal with the
Secretary and consider the Secretary’s acts as having been authorized by the Appeals
Committee. Any notice served or demand made on the Secretary will be deemed to have been
served or made upon the Appeals Com-mittee.

	7.11	 	Limitation of Duties. Ferro, the other Ferro Group Companies, the Administrator, the
Appeals Committee and their respective officers, members, employees, and agents will have no
duty or responsibility under this Plan other than the duties and responsibilities expressly
assigned or delegated to them pursuant to this Plan. None of them will have any duty or
responsibility with respect to those duties or responsibilities assigned or delegated to
another.

	7.12	 	Agents. The Administrator and the Appeals Committee may hire any attorneys,
accountants, actuaries, agents, clerks, and secretaries as it may deem desirable in the
performance of its duties, any of whom may also be advisors to any Ferro Group Company or any
subsidiary or affiliated company.

	7.13	 	Expenses of Administration. No fee or compensation will be paid to the Administrator
or any member of the Appeals Committee for their performance of services as such. Ferro will
bear all other expenses incurred in the administration of this Plan except to the extent Ferro
determines that the expenses are allocable to, and should be paid by, one or more of the Ferro
Group Companies.

	7.14	 	Indemnification. In addition to whatever rights of indemnification any member or
employee of the Administrator, the Appeals Committee, Ferro or other Ferro Group Company under
this Plan may be entitled to under the articles of incorporation, regulations or bylaws of the
Ferro Group Companies, under any provision of law or under any other agreement, the Ferro
Group Companies will satisfy any liability actually incurred by any member or employee
including reasonable expenses and attorneys’ fees, and any judgments, fines, and amounts paid
in settlement, in connection with any threatened, pending or completed action, suit or
proceeding which is related to the exercise or failure to exercise by any member or employee
any powers, authority, responsibilities or discretion provided under this Plan or reasonably
believed by a member or employee to be provided under this Plan, and any action taken by a
member or employee in connection with such exercise or failure to exercise. This
indemnification for all such acts taken or omitted is intentionally broad, but will not
provide indemnification for embezzlement or diversion of Plan funds for the benefit of any
member or employee. This indemnification will not be provided for any claim by a Ferro Group
Company or a subsidiary or affiliated company thereof against any member or employee. No
indemnification will be provided to any person who is not an individual.

	7.15	 	Limitation of Administrative Liability. Neither Ferro, any other Ferro Group
Company, the Administrator, the Appeals Committee nor any of their members or employees, will
be liable for any act taken by such person or entity pursuant to any provision of this Plan
except for gross abuse of the discretion given them under this Plan. No member of the
Administrator or Appeals Committee will be liable for the act of any other member. No member
of the Board of Directors will be liable to any person for any action taken or omitted in
connection with the administration of this Plan.

	7.16	 	Limitation of Sponsor Liability. Any right or authority exercisable by Ferro or
Board of Directors pursuant to any provision of this Plan will be exercised in Ferro’s
capacity as sponsor of this Plan, or on behalf of Ferro in such capacity, and not in a
fiduciary capacity, and may be exercised without the approval or consent of any person in a
fiduciary capacity. Neither Ferro, nor the Board of Directors, nor any of their respective
officers, members, employees, agents, and delegates, will have any liability to any party for
its exercise of any such right or authority.

ARTICLE VIII

AMENDMENT AND TERMINATION

	8.1	 	Amendment, Modification and Termination. Subject to Section 8.3 below, this Plan may
be amended, modified or terminated by Ferro at any time, or from time to time, by action of an
appropriate Ferro officer authorized or ratified by the Board of Directors, except that no
benefit accrued under this Plan as of any date shall be reduced by any change made on or after
such date in either the Qualified Plan or this Plan except to the extent such reduction
results from (a) an equivalent increase in the benefits payable from the Qualified Plan as a
result of an increase in the limits contained therein to effect compliance with Sections
401(a)(17) or 415 of the Code, (b) an equivalent increase in the benefits payable from the
Qualified Plan as a result of the application of a change in the nondiscrimination and
permitted disparity regulations under sections 401(a)(4) or 401(1) of the Code or an amendment
of the Qualified Plan after December 9, 1994 pertaining thereto, or (c) a decrease in the
benefits payable from the Qualified Plan as a result of the termination of the Qualified Plan
under Title IV of ERISA, to the extent such decrease is required to comply with the terms of
Title IV of ERISA or other applicable law or results from a reallocation of assets provided
for in Section 4044(b)(4) of ERISA to prevent the disqualification of the Qualified Plan.
Subject to the foregoing limitations, both this Plan and the Qualified Plan may be amended,
restated, terminated or replaced by action of the Board of Directors of the Company. It is
further understood that any benefits payable hereunder are in addition to and not in
diminution of any amounts payable by the Company under any other plan or contract applicable
to a Participant.

	8.2	 	Actions Binding on Ferro Group Companies. Any amendments made to this Plan will be
binding on all the Ferro Group Companies without the approval or consent of the Ferro Group
Companies other than Ferro. Ferro may, by amendment, also terminate this Plan on behalf of
all or any one of the other Ferro Group Companies in its sole discretion.

	8.3	 	Termination or Amendment After Change in Control. If a Change of Control occurs,
then, for a period of two (2) calendar years following such Change in Control, Ferro may not
amend or terminate this Plan without the prior written consent of all Participants.

ARTICLE IX

FERRO GROUP COMPANIES

	9.1	 	List of Ferro Group Companies. The Ferro Group Companies as of the Amendment and
Restatement Date are Ferro and the Affiliates of Ferro listed on Appendix B to this Plan.
Ferro may from time to time add or remove Ferro Affiliates from the list of Ferro Group
Companies by written action of its Chief Executive Officer. The addition or deletion will not
require a formal amendment to this Plan.

	9.2	 	Delegation of Authority. Ferro is fully empowered to act on behalf of itself and the
other Ferro Group Companies as it may deem appropriate in maintaining this Plan and any Trust.
The adoption by Ferro of any amendment to this Plan or any Trust, or the termination of this
Plan or any Trust, will constitute and represent, without any further action on the part of
any Ferro Group Company, the approval, adoption, ratification or confirmation by each Ferro
Group Company of any amendment or termination. In addition, the appointment of or removal by
Ferro of any Administrator, any trustee or other person under this Plan or any Trust will
constitute and represent, without any further action on the part of any Ferro Group Company,
the appointment or removal by each Ferro Group Company of such person.

ARTICLE X

MISCELLANEOUS

	10.1	 	No Implied Rights. Neither the establishment of this Plan nor any amendment of this
Plan will be construed as giving any Participant, Beneficiary or any other person any legal or
equitable right unless the right is specifically provided for in this Plan or conferred by
specific action of Ferro in accordance with the terms and provisions of this Plan. Except as
expressly provided in this Plan, neither Ferro nor any other Ferro Group Company will be
required or be liable to make any payment under this Plan.

	10.2	 	No Right to Ferro Group Company Assets. Neither the Participant nor any other person
will acquire by reason of this Plan any right in or title to any assets, funds or property of
Ferro or any other Ferro Group Company whatsoever including, without limitation, any specific
funds, assets or other property which Ferro or any other Ferro Group Company, in its sole
discretion, may set aside in anticipation of a liability hereunder. Any benefits which become
payable under this Plan will be paid from the general assets of the appropriate Ferro Group
Company. No assets of Ferro or any other Ferro Group Company will be held in any way as
collateral security for the fulfilling of the obligations of Ferro or the Ferro Group
Companies under this Plan. No assets of Ferro or any other Ferro Group Company will be
pledged or otherwise restricted in order to meet the obligations of this Plan. The
Participant will have only a contractual right to the amounts, if any, payable hereunder
unsecured by any asset of Ferro or any other Ferro Group Company. Nothing contained in this
Plan constitutes a guarantee by Ferro or any other Ferro Group Company that the assets of
Ferro or any other Ferro Group Company will be sufficient to pay any benefit to any person.

	10.3	 	No Employment Rights Created. This Plan will not be deemed to constitute a contract
of employment between Ferro or any of the other Ferro Group Companies and any Participant, or
to confer upon any Participant or employee the right to be retained in the service of Ferro or
any other Ferro Group Company for any period of time, nor shall any provision of this Plan
restrict the right of Ferro or any other Ferro Group Company to discharge or otherwise deal
with any Participant or other employees, with or without cause. Nothing in this Plan will be
construed as fixing or regulating the compensation or other benefits payable to any
Participant or other employee of Ferro or any other Ferro Group Company.

	10.4	 	Offset. If at the time payment is to be made under this Plan the Participant or
Qualified Spouse (or properly designated beneficiary or beneficiaries) or all such individuals
are indebted or obligated to a Ferro Group Company, then the payment to be made to the
Participant or Qualified Spouse (or properly designated beneficiary or beneficiaries) or all
such individuals may, in the discretion of the Administrator at the request of the Ferro Group
Company, be reduced by the amount of the indebtedness or obligation, provided, however, that
an election by the Ferro Group Company not to request any reduction will not constitute a
waiver of the Ferro Group Company’s claim for such indebtedness or obligation.

	10.5	 	No Assignment. Neither the Participant nor any other person will have any voluntary
or involuntary right to commute, sell, assign, pledge, anticipate, mortgage or otherwise
encumber, transfer, hypothecate or convey, in advance of actual receipt of the amount, if any,
payable under this Plan, or any part of the amount payable from this Plan, and any attempt to
do so will be void. All benefits under this Plan are expressly declared to be unassignable
and non-transferable. No part of the benefits under this Plan will be, before actual payment,
subject to seizure or sequestration for the payment of any debts, judgments, alimony or
separate maintenance owed by the Participant or any other person, or be transferable by
operation of law in the event of the Participant’s or any other person’s bankruptcy or
insolvency.

	10.6	 	Notice. Any notice required or permitted to be given under this Plan will be
sufficient if in writing and hand delivered, or sent by registered or certified mail or by
overnight delivery service, and:

	 	(A)	 	if given to a Ferro Group Company, delivered to the principal office of Ferro,
directed to the attention of the General Counsel; or

	 	(B)	 	if given to a Participant or Beneficiary, delivered to the last post office
address as shown on the Ferro Group Company’s or the Administrator’s records.

Notice will be deemed given as of the date of delivery or, if delivery is made by mail, as
of the date shown on the postmark or the receipt for registration or certification.

	10.7	 	Governing Laws. This Plan will be construed and administered according to the
internal substantive laws of the State of Ohio to the extent not preempted by the laws of the
United States of America.

	10.8	 	Incapacity. If the Administrator determines that any Participant or Qualified Spouse
(or properly designated beneficiary or beneficiaries) entitled to payment under this Plan is a
minor, a person declared incompetent or a person incapable of handling his or her property,
the Administrator may direct any payment to the guardian, legal representative or person
having the care and custody of the minor, incompetent or incapable person. The Administrator
may require proof of minority, incompetence, incapacity or guardianship, as it may deem
appropriate before making any payment. The Administrator will have no obligation thereafter
to monitor or follow the application of amounts so paid. Payments made pursuant to this
Section will completely discharge this Plan, any Trust, the Administrator, Ferro and all other
Ferro Group Companies with respect to the payments.

	10.9	 	Court Ordered Distributions. The Administrator is authorized to make any payments
directed by court order in any action in which this Plan or the Administrator is named as a
party. In addition, if a court determines that a spouse or former spouse or dependent or
former dependent of a Participant has an interest in the Participant’s benefits under this
Plan in connection with a property settlement or otherwise, the Administrator, in its sole
discretion, will have the right, notwithstanding any election made by a Participant, to
immediately distribute the spouse’s or former spouse’s or dependent’s or former dependent’s
interest in the Participant’s benefit under this Plan to that spouse or former spouse or
dependent or former dependent.

	10.10	 	Administrative Forms. All applications, elections and designations in connection
with this Plan made by a Participant or Qualified Spouse (or properly designated beneficiary
or beneficiaries) will become effective only when duly executed on forms provided by the
Administrator and filed with the Administrator.

	10.11	 	Independence of Plan. Except as otherwise expressly provided, this Plan will be
independent of, and in addition to, any other employee benefit agreement or plan or any rights
that may exist from time to time under any other agreement or plan.

	10.12	 	Responsibility for Legal Effect. Neither Ferro, any other Ferro Group Company, the
Administrator, nor any officer, member, delegate or agent of any of them, makes any
representations or warranties, express or implied, or assumes any responsibility concerning
the legal, tax, or other implications or effects of this Plan.

	10.13	 	Successors. The terms and conditions of this Plan will inure to the benefit of and
bind Ferro, the Ferro Group Companies, the Administrator and its members, the Participants,
their beneficiaries, and the successors, assigns, and personal representatives of any of them.

	10.14	 	Headings and Titles. The Section headings and titles of Articles used in this Plan
are for convenience of reference only and are not to be considered in construing this Plan.

	10.15	 	Appendices. The Appendices to this Plan constitute an integral part of this Plan
and are hereby incorporated into this Plan by this reference.

	10.16	 	Severability. If any provision or term of this Plan, or any agreement or instrument
required by the Administrator, is determined by a judicial, quasi-judicial or administrative
body to be void or not enforceable for any reason, all other provisions or terms of this Plan
or the agreement or instrument will remain in full force and effect and will be enforceable as
if the void or nonenforceable provision or term had never been a part of this Plan, or the
agreement or instrument.

	10.17	 	Actions by Ferro. Except as otherwise provided in this Plan, all actions of Ferro
under this Plan will be taken by the Board of Directors, and be evidenced in a writing
executed by an appropriate officer duly authorized.

	10.18	 	Spousal Consent and Release. If, in the opinion of Ferro, any present, former or
future spouse of an employee, entitled to benefits from this Plan shall by reason of law
appear to have any interest in the Plan benefits that may be or become payable hereunder to
such employee, Ferro may as a condition precedent to the making of a benefit payment
hereunder, require such written consent or release as in its discretion it shall determine to
be necessary, desirable or appropriate either to prevent or avoid any conflict or multiplicity
of claims, or to protect the rights of any such present, former or future spouse with respect
to the payment of any benefits under this Plan.

	10.19	 	Overpayments and Repayments. If Ferro determines that the benefits actually paid
under this Plan exceed the benefits that were properly payable to an employee or beneficiary
pursuant to this Plan, Ferro may, in addition to exercising any other legal remedies
available, reduce or suspend future benefit payments in any manner that Ferro in its sole
discretion deems equitable. If a Participant fails to continually comply with the terms and
conditions of the Noncompetition Agreement, then such Participant (or, if applicable, such
Participant’s Qualified Spouse or properly designated beneficiary or beneficiaries) shall,
upon written demand by Ferro, immediately repay to Ferro all payments theretofore received by
the Participant (or, if applicable, such Participant’s Qualified Spouse or properly designated
beneficiary or beneficiaries) under this Plan.

	10.20	 	References to Sections of Law and Certain Defined Terms. For purposes of this Plan:

	 	(A)	 	References in this Plan to the Code are to the Internal Revenue Code of 1986,
as heretofore and hereafter amended, and to similar provision of subsequent federal
law.

	 	(B)	 	References in this Plan to ERISA are to the Employee Retirement Income Security
Act of 1974, as heretofore and hereafter amended, and to similar provisions of
subsequent law.

	 	(C)	 	References in this Plan to Qualified Spouse refer to the Qualified Plan’s
defined term of “Qualified Spouse.”

	 	(D)	 	References in this Plan to Regular Compensation Formula refer to the normal
retirement benefit formula set forth in Section 5.5(a) of the Qualified Plan prior to
its elimination by amendment to the Qualified Plan executed December 19, 1990 and
effective December 31, 1989; however, for purposes of this Plan

	 	(1)	 	the term “regular compensation” under the Regular Compensation
Formula shall include

	 	(a)	 	Performance Share Plan awards which are awarded
before January 1, 2004,

	 	(b)	 	amounts payable under other agreements or
arrangements by reason of the proration or forfeiture of pre-January 1,
2004 Performance Share Plan awards, and

	 	(c)	 	awards or compensation under any other Company
incentive, reward or performance program or plan (which incentive,
reward or performance program or plan was in existence prior to
January 1, 2001) that was includable in “regular compensation” under
the terms of the Plan document in effect prior to January 1, 2001;

	 	(2)	 	amounts of deferred compensation and Performance Share Plan
awards shall be included in the year in which such amounts are earned and not
in the year to which such Performance Share Plan awards are deferred or in
which such Performance Share Plan awards are paid;

	 	(3)	 	amounts payable under clause (b) of item (1) above shall be
included in the year paid, and

	 	(4)	 	except as otherwise provided above, unless the Governance,
Nomination & Compensation Committee of the Board of Directors of the Company
determines otherwise, the term “regular compensation” under the Regular
Compensation Formula shall not include awards or compensation under any Company
incentive, reward or performance program or plan.

	 	(E)	 	References in this Plan to “properly designated beneficiary or beneficiaries”
means the beneficiary or beneficiaries named in a written beneficiary designation by an
employee participant (delivered to the Company prior to such employee’s death in a form
acceptable to the Company) with the written consent of the Qualified Spouse thereto;
provided, however, that if a deceased employee is not survived by a Qualified Spouse
and has not delivered such a written beneficiary designation to the Company prior to
death, then the phrase “properly designated beneficiary or beneficiaries” means the
beneficiary or beneficiaries of such deceased employee’s Qualified Plan benefit or, if
none, such deceased employee’s estate.

6

Definitions

For purposes of this Plan, the following terms have the meanings set forth below where
used in this Plan and identified with initial capital letters:

	 	 	 
	Term	 	Meaning
	Administrator

	 	As defined in Section 7.1 of this Plan.
	Affiliate

	 	Any entity which is a member of a controlled group of corporations

with the Company under Section 414(b) of the Code, under common

control with the Company under Section 414(c) of the Code, a member

of an affiliated service group with the Company under Section

414(m) of the Code, or otherwise required to be aggregated with the

Company under Section 414(o) of the Code.
	Amendment and Restatement Date

	 	June 30, 2004.
	Beneficial Owner

	 	“Beneficial owner” within the meaning of Rule 13d-3 under the

Exchange Act.
	Board of Directors

	 	Ferro’s Board of Directors.
	Change in Control

	 	A change in the control of Ferro that is required to be reported in

response to Item 6(e) of Schedule 14A of Regulation 14A promulgated

under the Exchange Act. For purposes of this definition, a Change

in Control will be deemed to have occurred if and when:
	
 
	 	(a) any “person” (as such term is used in Sections 13(d)(3) and

14(d)(2) of the Exchange Act) is or becomes the beneficial owner,

directly or indirectly, of securities of Ferro representing

twenty-five percent (25%) or more of the combined voting power of

Ferro’s outstanding voting securities; or
	
 
	 	(b) during any period of two consecutive years, the individuals set

forth below in sub-paragraph (1) and (2) cease for any reason to

constitute at least a majority of the Board of Directors:
	
 
	 	(1) the individuals who at the beginning of such period constituted

the Board of Directors, and
	
 
	 	(2) any new director (other than a director designated by a person

who has entered into an agreement or arrangement with Ferro to

effect a transaction described in clause (a) or (c) of this

definition) whose appointment, election, or nomination for election

by Ferro’s shareholders, was approved by a vote of at least

two-thirds of the directors then still in office who either were

directors at the beginning of the period or whose appointment,

election or nomination for election was previously so approved; or
	
 
	 	(c) a merger or consolidation of Ferro or one of its subsidiaries

is consummated with or into any other corporation, other than a

merger or consolidation which would result in the holders of the

voting securities of Ferro outstanding immediately prior thereto

holding securities which represent immediately after such merger or

consolidation more than 50% of the combined voting power of the

voting securities of either Ferro or the other entity which

survives such merger or consolidation or the parent of the entity

which survives such merger or consolidation; or
	
 
	 	(d) a sale or disposition by Ferro of all or substantially all

Ferro’s assets is consummated.
	Code

	 	The Internal Revenue Code of 1986, as amended, and any lawful

regulations or other pronouncements promulgated under that Code.
	Disability

	 	Any disability that qualifies a Participant for payment of benefits

under the Qualified Plan.
	ERISA

	 	The Employee Retirement Income Security Act of 1974, as amended,

and any lawful regulations or pronouncements issued under that Act.
	Exchange Act

	 	The Securities Exchange Act of 1934, as amended, and any lawful

regulations or pronouncements issued under that Act.
	Ferro

	 	As defined in Section 1.2 of this Plan. Such term also includes

any successor corporation or business organization that

subsequently assumes Ferro’s duties and obligations under this

Plan.
	Ferro Group Companies

	 	As defined in Section 9.1 of this Plan.
	Noncompetition Agreement

	 	A noncompetition, nonsolicitation, nondisparagement and

confidentiality agreement in a form specified by Ferro.
	Participant

	 	As defined in Section 3.2 of this Plan.
	Person

	 	A “person” as defined under Section 3(a)(9) of the Exchange Act as

modified and used in Sections 13(d) and 14(d) of the Exchange Act,

excluding:
	
 
	 	(a) Ferro or any of its subsidiaries;

(b) a trustee or other fiduciary holding securities under an

employee benefit plan of the Company (or of any of its affiliates

as defined under Rule 12b-2 under Section 12 of the Exchange Act);

(c) an underwriter temporarily holding securities pursuant to an

offering of such securities; or

(d) a corporation owned, directly or indirectly, by the

shareholders of Ferro in substantially the same proportion as their

ownership of the stock of Ferro.
	this Plan

	 	As defined in the Introduction to this Plan.
	Plan Year

	 	The calendar year.
	Present Value Factors

	 	As used in this Plan, the term Present Value Factors means the

following:
	
 
	 	(a) For so long as the Pension Benefit Guaranty Corporation

(“PBGC”) publishes interest rates, present value shall be

calculated using the interest rate, in effect on the last day of

the calendar quarter preceding the date of the Participant’s

termination of employment date with all Ferro Group Companies, that

would be used by the PBGC in determining the present value of a

lump sum distribution in a termination of a tax-qualified defined

benefit pension plan and the UP 1984 Mortality Table; and
	
 
	 	(b) When the PBGC ceases to publish interest rates, present value

shall be calculated using an interest rate that is one percent (1%)

less than the interest rate on 10-year Treasury securities (rounded

to the nearest quarter percent) published by the Board of Governors

of the Federal Reserve System and in effect on the last day of the

calendar quarter preceding the date of the Participant’s

termination of employment date with all Ferro Group Companies and

the applicable mortality table under Code Section 417(e)(3)

prescribed by the Secretary of the Treasury based on the prevailing

insurance commissioners’ standard table used to determine reserves

for group annuity contracts issued on the date as of which present

value is being determined. Currently, the prevailing insurance

commissioners’ standard table is the 1983 Group Annuity Mortality

Table.
	Primary Death Benefit

	 	The “primary death benefit” provided under the Qualified Plan.
	Qualified Plan

	 	The Ferro Corporation Retirement Plan, Plan Number 001, as

heretofore amended and as hereafter may be amended or amended and

restated, together with any successor plan to which the liabilities

thereunder may be transferred
	Qualified Spouse

	 	As defined in the Qualified Plan.
	Termination of Employment

	 	A Participant’s cessation of service with Ferro and the other Ferro

Group Companies, including subsidiaries and affiliates of the

foregoing, for any reason whatsoever, whether voluntarily or

involuntarily, including by reason of retirement, death, or

Disability.
	Trust

	 	The trust, if any, established pursuant to Section 6.1 of this Plan.

7

Ferro Group Companies

The following are the Ferro Group Companies:

Ferro Corporation

FEM Inc.

Ferro Glass & Color Corporation

Ferro International Services, Inc.

8

Ferro Pfanstiehl Laboratories, Inc.Ferro Corporation

Supplemental Defined Benefit Plan

for Executive Employees

Part B: 2005 Plan 

Overview

Establishment of Component Plan 

The provisions of the Code Section 2005 Plan are set forth in this Part B (the “2005 Plan”),
which is adopted and made a part of the Plan effective, except as otherwise specified, January 1,
2005.

Governs Accruals Subject to Code Section 409A

The 2005 Plan governs all accruals under the Plan which are not Pre-2005 Accruals (the “409A
Accruals”). Generally, this means that the 2005 Plan governs accruals in excess of those which
were earned and vested as of December 31, 2004. As described in the Introduction, all accruals
under the Plan were frozen effective March 31, 2006.

The 409A Accruals are subject to the requirements of Code Section 409A, and Ferro intends for
the 2005 Plan to comply with Code Section 409A. The 2005 Plan shall be interpreted and
administered so as to comply with Code Section 409A.

Terminology 

As used in the 2005 Plan, the term “Plan” refers to the 2005 Plan or to the Plan, as
appropriate.

9

	 
	Ferro Corporation

Supplemental Defined Benefit Plan

for Executive Employees

Part B: 2005 Plan

Effective January 1, 2005

10

Ferro Corporation

Supplemental Defined Benefit Plan

for Executive Employees

2005 Plan 

Introduction 

This 2005 Plan is the portion of the Ferro Corporation Supplemental Defined Benefit
Plan for Executive Employees which governs 409A Accruals. The purpose for the adoption of
this 2005 Plan is to comply with the requirements of Code Section 409A.

The 2005 Plan is hereby added to the Plan as follows, effective January 1, 2005, except as
otherwise specified.

ARTICLE I

NAME AND PURPOSE

	1.1	 	Name. The name of this Plan is the “Ferro Corporation Supplemental Defined Benefit
Plan for Executive Employees.” (This Plan was previously known as the “Ferro Corporation
Nonqualified Retirement Plan.”)

	1.2	 	Plan Sponsor. The sponsor of this Plan is Ferro Corporation (“Ferro”), an Ohio
corporation.

	1.3	 	Purpose. This purpose of this Plan is to provide supplemental retirement benefits
for certain management and highly compensated employees of the Ferro Group Companies whose
benefits under the Qualified Plan are limited by Sections 401(a)(17) and 415 of the Code, so
that the aggregate benefits provided for each such employee by the Qualified Plan and by this
Plan will not be less than benefits that would be provided to each such employee by the
Qualified Plan but for the limitations contained in the Qualified Plan to effect compliance
with Sections 401(a)(17) and 415 of the Code.

	1.4	 	Plan for a Select Group. This Plan covers only employees of a Ferro Group Company
who are members of a “select group of management or highly compensated Participants” as
provided in Sections 201(2), 301(a)(3), 401(a)(1) and 4021(b)(6) of ERISA. Notwithstanding
any provision of this Plan to the contrary, this Plan will be administered and its benefits
limited in a manner to comply with the above cited sections of ERISA.

	1.5	 	Not a Funded Plan. Ferro intends that this Plan be deemed to be “unfunded” for tax
purposes as well as for purposes of Title I of ERISA. Notwithstanding any provision of this
Plan to the contrary, this Plan will be administered in a manner so that it is deemed
“unfunded.”

	1.6	 	409A Compliance. It is the intention and purpose of Ferro and the Participants that
this Plan shall be deemed to be at all relevant times in compliance with Section 409A of the
Code and all other applicable laws in order to have the Federal income tax effect sought for
such plans, and this Plan shall be so interpreted and is intended to be so administered.

ARTICLE II

DEFINITIONS AND INTERPRETATION

	2.1	 	Definitions. Appendix A sets forth the definitions of certain terms used in this
Plan. Those terms shall have the meanings set forth on Appendix A where used in this Plan and
identified with initial capital letters.

	2.2	 	General Rules of Construction. For purposes of interpreting this Plan,

	 	(A)	 	the masculine gender will include the feminine and neuter, and vice versa, as
the context requires;

	 	(B)	 	the singular number will include the plural, and vice versa, as the context
requires;

	 	(C)	 	the present tense of a verb will include the past and future tenses, and vice
versa, as the context requires; and

	 	(D)	 	as provided under Article VII, the Administrator retains the power and duty to
interpret this Plan and resolve ambiguities.

ARTICLE III

PARTICIPATION

	3.1	 	Eligibility. In order to be eligible to participate in this Plan, Ferro must
determine that an individual is:

	 	(A)	 	in a select group of management or highly compensated employees as set forth in
Section 1.4;

	 	(B)	 	a participant in the Qualified Plan; and

	 	(C)	 	a participant in the Qualified Plan whose benefit payable under the Qualified
Plan is limited by the provisions in the Qualified Plan to effect compliance with
Sections 401(a)(17) or 415 of the Code or the elimination of the Regular Compensation
Formula under the Qualified Plan.

	3.2	 	Participation. An individual who is eligible to participate in this Plan will become
a Participant in this Plan immediately on the date that he satisfies the eligibility
requirements in Section 3.1.

11

ARTICLE IV

PLAN BENEFITS

	4.1	 	Plan Benefits Conditioned on Noncompetition Agreement. The Plan benefits set forth
in this Article IV payable to Participants whose employment with all Ferro Group Companies
terminates on or after January 1, 2001, shall be conditioned upon (i) Ferro’s receipt of a
Noncompetition Agreement signed by the Participant within sixty (60) days after the
Participant’s Termination of Employment (or such shorter period as may be required to ensure
that distribution is made by the Time Required by Law), and (ii) the Participant’s continual
compliance with the terms and conditions of such Noncompetition Agreement; provided, however,
the requirement that a Participant sign and continually comply with the terms and conditions
of such Noncompetition Agreement shall not apply to any Participant whose employment
terminates either (i) as a result of the Participant’s death prior to the commencement of Plan
benefits, or (ii) following a Change in Control. If the Participant fails to so continually
comply, then all of the Participant’s benefits (including, without limitation, benefits to
such employee’s Participant’s Qualified Spouse or designated beneficiary or beneficiaries)
under this Plan shall be automatically forfeited and repaid to Ferro as provided in Section
10.19 hereof.

	 	 	4.1A Freeze of Accrued Benefits. Notwithstanding any provision of the Plan to the
contrary, effective March 31, 2006, the “benefit payable” under Sections 4.2, 4.3, 4.4 and 4.5
shall be calculated with reference to the terms of the Qualified Plan as it was amended
effective on and after March 31, 2006 to cease benefit accruals (the “Frozen Qualified Plan”).
Pursuant to the foregoing, the amount determined under Paragraph (A)(a) of each such Section
shall be calculated based upon the terms of the Frozen Qualified Plan but without regard to
the limitations pertaining to Code Sections 401(a)(17) and 415 and the elimination of the
Regular Compensation Formula, and the amount determined under Paragraph (A)(b) of each such
Section shall be calculated based upon the amount actually paid or payable under terms of the
Frozen Qualified Plan.

	4.2	 	Normal and Early Retirement. A Participant will receive a normal or early retirement
benefit in the amount set forth in Section 4.2(A) and in the manner and form of payment set
forth in Section 4.2(B).

	 	(A)	 	Amount. Subject to the provisions of Section 4.4, the Plan benefit
payable to a Participant under this Part B upon termination of employment after
eligibility for an early or normal retirement benefit under the Qualified Plan is the
excess of (a) over (b), further reduced by (c), where: (a) is the amount of the
benefit that would have been payable to the Participant under the Qualified Plan upon
normal or early retirement but for the Qualified Plan limitations pertaining to Code
Sections 401(a)(17) and 415 and the elimination of the Regular Compensation Formula
under the Qualified Plan; (b) is the amount of the benefit that is actually paid, or
would be payable, to the Participant upon normal or early retirement under the
provisions of the Qualified Plan; and (c) is the monthly normal or early retirement
benefit that has been paid or is payable under Part A of this Plan. Notwithstanding the
foregoing, the calculation of an early retirement benefit under this Part B for a
Participant who is a Ferro officer elected by Ferro’s Board of Directors shall be
determined in accordance with the early retirement factors in the following column
labeled “Special Factors” with the result that there shall be no benefit reduction due
to age for retirement on or after age 60:

	 	 	 	 	 
	Early Retirement Factors

	 

	Age

	 	Special Factors

	 

	 	 	 	 
	65

	 	 	1.00	 
	 

	 	 	 	 
	64

	 	 	1.00	 
	 

	 	 	 	 
	63

	 	 	1.00	 
	 

	 	 	 	 
	62

	 	 	1.00	 
	 

	 	 	 	 
	61

	 	 	1.00	 
	 

	 	 	 	 
	60

	 	 	1.00	 
	 

	 	 	 	 
	59

	 	 	0.94	 
	 

	 	 	 	 
	58

	 	 	0.88	 
	 

	 	 	 	 
	57

	 	 	0.82	 
	 

	 	 	 	 
	56

	 	 	0.76	 
	 

	 	 	 	 
	55

	 	 	0.70	 
	 

	 	 	 	 

	 	(B)	 	Manner and Form of Payment. The benefit provided under Section 4.2(A)
of this Part B for each Participant who terminates employment with a Ferro Group
Company after eligibility for an early or normal retirement benefit under the Qualified
Plan, shall be paid in the form of a lump sum cash payment that is 100% of the commuted
present value as determined by the Qualified Plan’s actuary using the Present Value
Factors of the benefit determined under Section 4.2(A) of this Part B, such commuted
present value to be determined as of the date the Participant’s benefits under Part A
of this Plan are determined for payment of an immediate lump sum distribution following
Termination of Employment (or, in the event an immediate lump sum distribution is not
made of the Participant’s benefits under Part A, a date selected by the Administrator
within ninety (90) days after the Termination of Employment). The lump sum cash
payment shall be made on the date which is six (6) months following the Participant’s
Termination of Employment (provided, however, that in the event of the Participant’s
death after Termination of Employment, the lump sum cash payment shall be made on the
date of death) and in any event by the Time Required By Law.

	4.3	 	Disability. A Participant will receive a disability benefit in the amount set forth
in Section 4.3(A) and in the manner and form of payment set forth in Section 4.3(B).

	 	(A)	 	Amount. If a Participant becomes Totally and Permanently Disabled and
receives a disability retirement benefit from the Qualified Plan, the benefit payable
to the Participant under this Part B is a monthly amount equal to the excess of (a)
over (b), further reduced by (c), where: (a) is the amount of the monthly disability
retirement benefit under the Qualified Plan that would have been payable to the
Participant but for the limitations pertaining to Code Sections 401(a)(17) and 415 and
the elimination of the Regular Compensation Formula under the Qualified Plan; (b) is
the amount of the monthly disability retirement benefit that is actually paid to the
Participant under the provisions of the Qualified Plan; and (c) is the monthly benefit
that is payable under Part A of this Plan. The monthly benefit payable under this
Part B terminates upon the earliest of the Participant’s ceasing to be Totally and
Permanently Disabled, death, or attainment of age 65; and, thereafter, the applicable
provisions of this Article IV shall apply.

	 	(B)	 	Manner and Form of Payment. The benefit provided under Section 4.3(A)
of this Part B for each Participant who becomes Totally and Permanently Disabled and
receives a disability retirement benefit from the Qualified Plan, shall be paid in the
form of monthly payments payable under the Qualified Plan commencing with the month in
which benefit payments from the Qualified Plan commence and continuing to and including
the month in which the earlier of the Participant’s ceasing to be Totally and
Permanently Disabled, death or attainment of age 65.

A Participant’s right to payments under this Section 4.3 of Part B shall, to the
extent such payments are considered installment payments under Code Section 409A,
constitute a right to a series of separate payments.

	4.4	 	Death. A Qualified Spouse (or properly designated beneficiary or beneficiaries) or
Beneficiary will receive a death benefit in the amount set forth in Section 4.4(A) and in the
manner and form of payment set forth in 4.4(B).

	 	(A)	 	Amount. If a Participant dies before the commencement of Plan
benefits under this Part B (other than monthly disability benefits under this Plan) and
a Primary Death Benefit is payable from the Qualified Plan as a result of such
employee’s death, the benefit payable under this Part B to the Participant’s Qualified
Spouse (or properly designated beneficiary or beneficiaries) is the commuted present
value of the excess of (a) over (b), further reduced by (c), where: (a) is the amount
of the Primary Death Benefit, plus supplemental spouse’s benefit if such employee’s
Qualified Spouse is the beneficiary, that would have been payable under the Qualified
Plan but for the limitations pertaining to Code Sections 401(a)(17) and 415 and the
elimination of the Regular Compensation Formula under the Qualified Plan; (b) is the
amount of the Primary Death Benefit, plus supplemental spouse’s benefit if such
employee’s Qualified Spouse is the beneficiary, that is actually payable under the
provisions of the Qualified Plan; and (c) is the amount of death benefit that is paid
or payable under Part A of this Plan.

	 	(B)	 	Manner and Form of Payment. The benefit provided under Section 4.4(A)
of this Part B for the deceased Participant’s Qualified Spouse or properly designated
beneficiary or beneficiaries shall be paid in the form of a single lump sum cash
payment that is 100% of the commuted present value as determined by the Qualified
Plan’s actuary using the Present Value Factors of the benefit determined under Section
4.4(A) of this Plan. The lump sum cash payment shall be made on the date of death and
in any event by the Time Required By Law.

	4.5	 	Other Termination of Employment. A Participant will receive a deferred vested
benefit in the amount set forth in Section 4.5(A) and in the manner and form of payment set
forth in 4.5(B).

	 	(A)	 	Amount. If a Participant terminates employment with all Ferro Group
Companies other than as provided in Sections 4.2, 4.3, or 4.4 of this Plan, the benefit
payable to the Participant under this Part B is the commuted present value of the
excess of (a) over (b), further reduced by (c), where: (a) is the amount of the
Qualified Plan’s deferred vested benefit that the Participant would have accrued but
for the limitations pertaining to Code Sections 401(a)(17) and 415 and the elimination
of the Regular Compensation Formula under the Qualified Plan; (b) is the deferred
vested benefit that the Participant actually accrued under the provisions of the
Qualified Plan; and (c) is the deferred vested benefit that has been paid or is payable
under Part A of this Plan.

	 	(B)	 	Manner and Form of Payment. The benefit provided under Section 4.5(A)
of this Part B for each Participant shall be paid in the form of a single lump sum cash
payment that is 100% of the commuted present value as determined by the Qualified
Plan’s actuary using the Present Value Factors of the benefit determined under Section
4.5(A) of this Part B, such commuted present value to be determined as of the date the
Participant’s benefits under Part A of this Plan are determined for payment of an
immediate lump sum distribution following Termination of Employment (or, in the event
an immediate lump sum distribution is not made of the Participant’s benefits under Part
A, a date selected by the Administrator within ninety (90) days after the Termination
of Employment). The lump sum cash payment shall be made on the date which is six (6)
months following the Participants’ Termination of Employment (provided, however, that
in the event of the Participant’s death after Termination of Employment, the lump sum
cash payment shall be made on the date of death) and in any event by the Time Required
By Law.

	4.6	 	Discretionary Benefit Increases. [Intentionally blank.]

	4.7	 	Discretionary Commutation of Benefits. [Intentionally blank.]

	4.8	 	Change in Control. If a Change in Control occurs, then all of the obligations of
Ferro under this Plan shall continue to be enforceable against Ferro and any successor.
Notwithstanding any provision of Article IV to the contrary, if any person entitled to
benefits under this Plan is not actively employed by a Ferro Group Company at the time a
Change in Control occurs, that person shall immediately receive a single, lump sum cash
payment equal to the commuted present value of that person’s monthly benefit payments under
this Plan (whether or not such person is then in pay status), as determined by the Qualified
Plan’s actuary, using the Present Value Factors.

	4.9	 	Protective Distributions. If the Administrator determines that a Participant is not a
member of a “select group of management or highly compensated employees” within the meaning of
Section 201(2), 301(a)(3), 401(a)(1) or 4021(b)(6) of ERISA, then the Administrator may, as it
determines necessary to satisfy the exclusions from ERISA coverage contemplated by Section
1.4, terminate the Participant’s participation in this Plan and forfeit any amounts
erroneously credited under this Plan with respect to such Participant.

	4.10	 	Tax Withholding and Acceleration of Payment for Payment of Taxes. A Ferro Group
Company may withhold, from any payment made by it under this Plan, the amount or amounts as
may be required for purposes of complying with the tax withholding or other provisions of the
Code or the Social Security Act or any state or local income or employment tax act or for
purposes of paying any estate, inheritance or other tax attributable to any amounts payable
hereunder. Further, distribution shall be made from the Plan at such time or times as the
Administrator, in its sole discretion pursuant to uniform and nondiscriminatory procedures,
shall determine that amounts are due for the payment of Federal Insurance Contributions Act
taxes imposed under Code Sections 3101, 3121(a) or 3121(v)(2) on the 409A Accruals. Such
distribution, if any, shall be made for the exclusive purpose of paying such Federal Insurance
Contributions Act taxes. In addition, distribution shall be made from the Plan at such time
or times as the Administrator, in its sole discretion pursuant to uniform and
nondiscriminatory procedures, shall determine that amounts are due for the payment of income
tax at source on wages imposed under Code Section 3401 (or the corresponding withholding
provisions of applicable state, local or foreign tax laws) as a result of the payment of the
Federal Insurance Contributions Act taxes, or are due for the payment of additional income tax
at source on wages attributable to the pyramiding Code Section 3401 wages and taxes. Such
distribution, if any, shall be made for the exclusive purpose of paying such taxes. In no
event shall the amounts distributed pursuant to this Section exceed the amounts owed for the
payment of Federal Insurance Contribution Act taxes and the income tax withholding related to
such amounts.

	4.11	 	Inability to Locate Participant. If a Ferro Group Company or the Administrator
notifies a Participant or a Qualified Spouse (or properly designated beneficiary or
beneficiaries) of an entitlement to an amount under this Plan and such person or persons fail
to request payment, to provide information or to take any other action to receive payment of
such amount, the Administrator shall to the extent administratively possible, direct
distribution to be made on an involuntary basis to such person or persons by the Time Required
by Law. If the location of a Participant, Qualified Spouse or other beneficiary cannot be
determined after a prompt, reasonable good faith effort by the Administrator, the
Administrator will direct that the amount payable to the Participant or the Qualified Spouse
(or properly designated beneficiary or beneficiaries) be forfeited by the Time Required by
Law, and no further benefit will be payable with respect to any Participant, Qualified Spouse
or other beneficiary.

	4.12	 	Distribution upon Income Inclusion under Code Section 409A and Other Acceleration
Events. The prior provisions of this Article IV notwithstanding, in the event the Plan
fails to meet the requirements of Code Section 409A, a Participant’s 409A Accruals shall be
distributed in an amount equal to the amount which is included in income on account of the
failure to comply with Code Section 409A.

	4.13	 	General Restriction on Distribution and Acceleration of Payment. Notwithstanding any
provision of the Plan to the contrary, a Participant’s 409A Accruals shall not be distributed
earlier than the time permitted under Code Section 409A. Consistent with Code Section 409A,
this Part B provides that distribution shall not be made before the earlier of Termination of
Employment, death or disability and imposes a restriction on distribution on account of
Termination of Employment by which no distribution is made until the six (6) month anniversary
of the Termination of Employment.

ARTICLE V

RIGHTS OF PARTICIPANTS

	5.1	 	Creditor Status of Participants. The benefits payable under this Plan shall be
merely an unfunded, unsecured promise of the Ferro Group Company (by which the Participant is
employed) to make benefit payments in the future and shall be liabilities solely against the
general assets of such Ferro Group Company. Except as may be provided under the terms of a
Trust which may be established pursuant to Article VI, neither Ferro nor any other Ferro Group
Company shall be required to segregate, set aside or escrow any corporate assets to meet its
obligations under this Plan. With respect to any benefits payable under this Plan, a
Participant or a Qualified Spouse (or properly designated beneficiary or beneficiaries) will
have the status of general unsecured creditors of the Ferro Group Company by which the
Participant is employed, and may look only to that Ferro Group Company and its general assets
for payment of the benefits.

	5.2	 	Rights with Respect to the Trust. Any trust, and any assets held thereby to assist
Ferro or other Ferro Group Company in meeting its obligations under this Plan, will in no way
be deemed to controvert the provisions of Section 5.1 above.

	5.3	 	Investments. In Ferro’s sole discretion, the Ferro Group Companies may acquire
insurance policies, annuities or other financial vehicles for the purpose of providing future
assets of the Ferro Group Companies to meet their anticipated liabilities under this Plan.
Such policies, annuities or other investments, shall at all times be and remain unrestricted
general property and assets of the Ferro Group Companies or property of a trust established
pursuant to Article VI of this Plan. Participants and Qualified Spouses (or properly
designated beneficiaries) will have no rights, other than as general creditors, with respect
to any such policies, annuities or other acquired assets.

ARTICLE VI

TRUST

	6.1	 	Establishment of Trust. Notwithstanding any other provision or interpretation of
this Plan, Ferro may establish a Trust in which to hold cash, insurance policies or other
assets that may be used to make, or reimburse Ferro or any other Ferro Group Company for,
payments to the Participants or Qualified Spouses (or properly designated beneficiary or
beneficiaries) of all or part of the benefits under this Plan. Any Trust assets shall at all
times remain subject to the claims of general creditors of Ferro or the Ferro Group Company in
the event of the insolvency of Ferro or the Ferro Group Company as more fully described in the
Trust.

	6.2	 	Obligation of Ferro. Notwithstanding the fact that a Trust may be established under
Section 6.1, the Ferro Group Companies shall remain liable for paying the benefits under this
Plan. However, any payment of benefits to a Participant or a Qualified Spouse (or a properly
designated beneficiary or beneficiaries) made by a Trust will satisfy the appropriate Ferro
Group Company’s obligation to make payment to such person under this Plan.

	6.3	 	Trust Terms. A Trust established under Section 6.1 may contain any terms as Ferro
may determine to be necessary or desirable; provided, however, that, no terms shall provide
for or permit funding that would result in income inclusion under Code Section 409A(b)
including, but not limited to, terms that allow for the transfer or set aside of assets
offshore in a Trust, or which provide for assets to become restricted to the provision of
benefits in connection with a change in the financial health of Ferro and Affiliates, and any
terms which so provide shall be deemed null and void. Consistent with the foregoing, Ferro
may terminate or amend a Trust established under Section 6.1 at any time, and in any manner it
deems necessary or desirable, subject to the terms of any agreement under which any Trust is
established or maintained.

ARTICLE VII

ADMINISTRATION AND CLAIMS PROCEDURE

	7.1	 	Administrator. The Administrator will be Ferro, acting by and through Ferro’s
Corporate Human Resources Department, unless the Board of Directors, acting itself or through
an appropriate committee designates otherwise.

	7.2	 	General Rights, Powers, and Duties of Administrator. The Administrator will be the
Plan administrator under ERISA. The Administrator will be responsible for the general
administration of this Plan and will have all powers as may be necessary to carry out the
provisions of this Plan and may, from time to time, establish rules for the administration of
this Plan and the transaction of this Plan’s business. In addition to any powers, rights and
duties set forth elsewhere in this Plan, it will have the following powers and duties:

	 	(A)	 	To enact rules, regulations, and procedures and to prescribe the use of such
forms as it deems advisable;

	 	(B)	 	To appoint or employ agents, attorneys, actuaries, accountants, assistants or
other persons (who may also be Participants in this Plan or be employed by or represent
a Ferro Group Company) at the expense of the Ferro Group Companies, as it deems
necessary to keep its records or to assist it in taking any other action authorized or
required under this Plan;

	 	(C)	 	To interpret this Plan, and to resolve ambiguities, inconsistencies and
omissions, to determine any question of fact, to determine the right to benefits of,
and the amount of benefits, if any, payable to, any person in accordance with the
provisions of this Plan and resolve all questions arising under this Plan;

	 	(D)	 	To administer this Plan in accordance with its terms and any rules and
regulations it establishes;

	 	(E)	 	To maintain records concerning this Plan as it deems sufficient to prepare
reports, returns and other information required by this Plan or by law; and

	 	(F)	 	To direct a Ferro Group Company to pay benefits under this Plan and to give
other directions and instructions as may be necessary for the proper administration of
this Plan.

Any decision, interpretation or other action made or taken by the Administrator arising out
of or in connection with this Plan, will be within the absolute discretion of the
Administrator, and will be final, binding and conclusive on Ferro, all other Ferro Group
Companies, and all Participants and Beneficiaries and their respective heirs, executors,
administrators, successors and assigns. Except as may be required for compliance with Code
Section 409A, the Administrator’s determinations under this Plan need not be uniform, and
may be made selectively among Participants, whether or not they are similarly situated.

	7.3	 	Information to Be Furnished to the Administrator. A Ferro Group Company will furnish
the Administrator with such data and information as it may reasonably require. The records of
a Ferro Group Company will be determinative of each Participant’s period of employment,
termination of employment, personal data, and data regarding the Participant’s benefit under
the Qualified Plan. Participants, Qualified Spouses (and properly designated beneficiaries)
will furnish to the Administrator such evidence, data or information and execute such
documents as the Administrator requests.

	7.4	 	Claims for Benefits. A Participant or Beneficiary must make a claim for payment
under this Plan in writing to the Administrator in the manner prescribed by the Administrator
as soon as administratively practicable following the distribution event. The Administrator
will process each claim and determine entitlement to benefits within 90 days after the
Administrator receives a completed application for benefits (or within such shorter period as
may be required to ensure that payment is made by the Time Required by Law). If the
Administrator needs an extension of time for processing because calculation of the benefit
amount is not administratively practicable, then the Administrator will notify the claimant
before the end of the initial period. The extension notice will indicate the special
circumstances requiring an extension of time and the date as of which the Administrator
expects to render the final decision. In no event will such an extension exceed 90 days from
the end of the initial period.

	7.5	 	Denial of Benefit. If a claim is wholly or partially denied by the Administrator,
then the Administrator will notify the claimant of the denial of the claim in a writing
delivered in person or mailed by first class mail to the claimant’s last known address. The
notice of denial will contain:

	 	(A)	 	the specific reason or reasons for denial of the claim;

	 	(B)	 	a reference to the relevant Plan provisions upon which the denial is based;

	 	(C)	 	a description of any additional material or information necessary for the
claimant to perfect the claim, together with an explanation of why the material or
information is necessary; and

	 	(D)	 	an explanation of this Plan’s claim review procedure.

If no notice is provided, the claim will be deemed denied. The interpretations,
determinations and decisions of the Administrator will be final and binding upon all persons
with respect to any right, benefit and privilege hereunder, subject to the review procedures
set forth in this Article.

	7.6	 	Request for Review of a Denial of a Claim for Benefits. Any claimant or any
authorized representative of the claimant whose claim for benefits under this Plan has been
denied or deemed denied, in whole or in part, may upon written notice to the Appeals Committee
request a review by the Appeals Committee of the denial of the claim. The claimant will have
60 days from the date the claim is deemed denied or 60 days from receipt of the notice denying
the claim, as the case may be (or, in the case of a claim for benefits based upon Disability,
180 days from the date the claim is deemed denied or 180 days from receipt of the notice
denying the claim, as the case may be), in which to request a review by written application
delivered to the Appeals Committee, which must specify the relief requested and the reason
such claimant believes the denial should be reversed.

	7.7	 	Appeals Procedure. The Appeals Committee will review the facts and relevant
documents including this Plan, and interpret the facts and relevant documents including this
Plan to render a decision on the claim. The review may be of written briefs submitted by the
claimant, or at a hearing, or by both, as deemed necessary or appropriate by the Appeals
Committee. Any hearing will be held in the main office of Ferro, or such other location as
the Appeals Committee may select, on the date and at the time as the Appeals Committee
designates by giving at least 15-days’ notice to the claimant, unless the claimant accepts
shorter notice. The notice will specify that the claimant must indicate in writing, at least
five days in advance of the hearing, the claimant’s intention to appear at the appointed time
and place, or the hearing will be automatically cancelled. The reply will specify any other
persons who will accompany the claimant to the hearing, or such other persons will not be
admitted to the hearing. The Appeals Committee will make every effort to schedule the hearing
on a day and at a time that is convenient to both the claimant and the Appeals Committee. The
claimant, or his duly authorized representative, may review all pertinent documents relating
to the claim in preparation for the hearing and may submit issues and comments in writing
before or during the hearing.

	7.8	 	Decision Upon Review of Denial of Claim for Benefits. In making its decision, the
Appeals Committee will have full power and discretion to interpret this Plan, to resolve
ambiguities, inconsistencies and omissions, to determine any question of fact, and to
determine the right to benefits of, and the amount of benefits, if any, payable to, any person
in accordance with the provisions of this Plan. The Appeals Committee will render a decision
on the claim reviewed no more than 60 days after the receipt of the claimant’s request for
review (or no more than 45 days where the claim is based on Disability), unless special
circumstances (such as the need to hold a hearing) require an extension of time, in which case
the 60-day period may be extended up to 120 days (or the 45-day period may be extended up to
90 days in the case of a claim based on Disability). The Appeals Committee will provide
written notice of its decision to the claimant within the time frame specified. The notice
will include the specific reasons for the decision and contain specific references to the
relevant Plan provisions upon which the decision is based. If notice of the decision is not
provided within the time frame specified, the claim will be deemed denied on review. The
decision of the Appeals Committee will be final and binding in all respects on the
Administrator, the Ferro Group Company and claimant involved.

	7.9	 	Establishment of Appeals Committee. The Chief Executive Officer of Ferro will
appoint three or more persons to serve as members of the Appeals Committee. The Chief
Executive Officer may appoint one Appeals Committee to hear all appeals of denied benefits
that arise under this Plan, or may appoint a new Appeals Committee each time an Appeals
Committee is needed to hear an appeal of denied benefits that arises under this Plan. The
members of the Appeals Committee will remain in office at the will of the Chief Executive
Officer, and the Chief Executive Officer may remove any of the members with or without cause.
A member of the Appeals Committee may resign upon written notice to the remaining member or
members of the Appeals Committee and to the Chief Executive Officer, respectively. The fact
that a person is a Participant or a former Participant or a prospective Participant will not
disqualify that person from acting as a member of the Appeals Committee. No member of the
Appeals Committee will be disqualified from acting on any question because of the member’s
interest in the question, except that no member of the Appeals Committee may act on any claim
which the member has brought as a Participant, former Participant, Qualified Spouse or
beneficiary under this Plan. In case of the death, resignation or removal of any member of
the Appeals Committee, the remaining members will act until a successor-member is appointed by
the Chief Executive Officer. At the Administrator’s request, the Chief Executive Officer will
notify the Administrator in writing of the names of the members of the Appeals Committee, of
any and all changes in the membership of the Appeals Committee, of the member designated as
Chairman, and the member designated as Secretary, and of any changes in either office. Until
notified of a change, the Administrator will be protected in assuming that there has been no
change in the membership of the Appeals Committee or the designation of Chairman or of
Secretary since the last notification was filed with it. The Administrator will be under no
obligation at any time to inquire into the membership of the Appeals Committee or its
officers. All communications to the Appeals Committee will be addressed to its Secretary at
the address of the Company.

	7.10	 	Operation of the Appeals Committee. On all matters and questions, the decision of a
majority of the members of the Appeals Committee will govern and control. A meeting need not
be called or held to make any decision. The Appeals Committee will appoint one of its members
to act as its Chairman and another member to act as Secretary. The terms of office of these
members will be determined by the Appeals Committee, and the Secretary and/or Chairman may be
removed by the other members of the Appeals Committee for any reason which such other members
may deem just and proper. The Secretary will do all things directed by the Appeals Committee.
Although the Appeals Committee will act by decision of a majority of its members as provided
above, in the absence of written notice to the contrary, every person may deal with the
Secretary and consider the Secretary’s acts as having been authorized by the Appeals
Committee. Any notice served or demand made on the Secretary will be deemed to have been
served or made upon the Appeals Com-mittee.

	7.11	 	Limitation of Duties. Ferro, the other Ferro Group Companies, the Administrator, the
Appeals Committee and their respective officers, members, employees, and agents will have no
duty or responsibility under this Plan other than the duties and responsibilities expressly
assigned or delegated to them pursuant to this Plan. None of them will have any duty or
responsibility with respect to those duties or responsibilities assigned or delegated to
another.

	7.12	 	Agents. The Administrator and the Appeals Committee may hire any attorneys,
accountants, actuaries, agents, clerks, and secretaries as it may deem desirable in the
performance of its duties, any of whom may also be advisors to any Ferro Group Company or any
subsidiary or affiliated company.

	7.13	 	Expenses of Administration. No fee or compensation will be paid to the Administrator
or any member of the Appeals Committee for their performance of services as such. Ferro will
bear all other expenses incurred in the administration of this Plan except to the extent Ferro
determines that the expenses are allocable to, and should be paid by, one or more of the Ferro
Group Companies.

	7.14	 	Indemnification. In addition to whatever rights of indemnification any member or
employee of the Administrator, the Appeals Committee, Ferro or other Ferro Group Company under
this Plan may be entitled to under the articles of incorporation, regulations or bylaws of the
Ferro Group Companies, under any provision of law or under any other agreement, the Ferro
Group Companies will satisfy any liability actually incurred by any member or employee
including reasonable expenses and attorneys’ fees, and any judgments, fines, and amounts paid
in settlement, in connection with any threatened, pending or completed action, suit or
proceeding which is related to the exercise or failure to exercise by any member or employee
any powers, authority, responsibilities or discretion provided under this Plan or reasonably
believed by a member or employee to be provided under this Plan, and any action taken by a
member or employee in connection with such exercise or failure to exercise. This
indemnification for all such acts taken or omitted is intentionally broad, but will not
provide indemnification for embezzlement or diversion of Plan funds for the benefit of any
member or employee. This indemnification will not be provided for any claim by a Ferro Group
Company or a subsidiary or affiliated company thereof against any member or employee. No
indemnification will be provided to any person who is not an individual.

	7.15	 	Limitation of Administrative Liability. Neither Ferro, any other Ferro Group
Company, the Administrator, the Appeals Committee nor any of their members or employees, will
be liable for any act taken by such person or entity pursuant to any provision of this Plan
except for gross abuse of the discretion given them under this Plan. No member of the
Administrator or Appeals Committee will be liable for the act of any other member. No member
of the Board of Directors will be liable to any person for any action taken or omitted in
connection with the administration of this Plan.

	7.16	 	Limitation of Sponsor Liability. Any right or authority exercisable by Ferro or
Board of Directors pursuant to any provision of this Plan will be exercised in Ferro’s
capacity as sponsor of this Plan, or on behalf of Ferro in such capacity, and not in a
fiduciary capacity, and may be exercised without the approval or consent of any person in a
fiduciary capacity. Neither Ferro, nor the Board of Directors, nor any of their respective
officers, members, employees, agents, and delegates, will have any liability to any party for
its exercise of any such right or authority.

ARTICLE VIII

AMENDMENT AND TERMINATION

	8.1	 	Amendment, Modification and Termination. Subject to Section 8.3 below, this Plan
may be amended, modified or terminated by Ferro at any time, or from time to time, by action
of an appropriate Ferro officer authorized or ratified by the Board of Directors, except that
no benefit accrued under this Plan as of any date shall be reduced by any change made on or
after such date in either the Qualified Plan or this Plan except to the extent such reduction
results from (a) an equivalent increase in the benefits payable from the Qualified Plan as a
result of an increase in the limits contained therein to effect compliance with Sections
401(a)(17) or 415 of the Code, (b) an equivalent increase in the benefits payable from the
Qualified Plan as a result of the application of a change in the nondiscrimination and
permitted disparity regulations under sections 401(a)(4) or 401(1) of the Code or an amendment
of the Qualified Plan after December 9, 1994 pertaining thereto, or (c) a decrease in the
benefits payable from the Qualified Plan as a result of the termination of the Qualified Plan
under Title IV of ERISA, to the extent such decrease is required to comply with the terms of
Title IV of ERISA or other applicable law or results from a reallocation of assets provided
for in Section 4044(b)(4) of ERISA to prevent the disqualification of the Qualified Plan.
Subject to the foregoing limitations, both this Plan and the Qualified Plan may be amended,
restated, terminated or replaced by action of the Board of Directors of the Company; provided
that no amendment, modification or termination of this Plan will be effective prior to the
date permitted under Code Section 409A, which, in certain circumstances, is 12 months
following the adoption of such amendment, modification or termination. It is further
understood that any benefits payable hereunder are in addition to and not in diminution of any
amounts payable by the Company under any other plan or contract applicable to a Participant.

	8.2	 	Actions Binding on Ferro Group Companies. Any amendments made to this Plan will be
binding on all the Ferro Group Companies without the approval or consent of the Ferro Group
Companies other than Ferro. Ferro may, by amendment, also terminate this Plan on behalf of
all or any one of the other Ferro Group Companies in its sole discretion.

	8.3	 	Termination or Amendment After Change in Control. If a Change of Control occurs,
then, for a period of two (2) calendar years following such Change in Control, Ferro may not
amend or terminate this Plan without the prior written consent of all Participants.

	8.4	 	Distribution of Benefits on Plan Termination. In the event Ferro elects to amend,
modify or terminate the Plan as provided under Section 8.1, no right to the payment of
benefits shall arise as a result. The prior provisions notwithstanding, Ferro may, in its
discretion, provide by amendment to the Plan a right to the payment of all Participants’ 409A
Accruals as a result of the liquidation and termination of the Plan where:

	 	(A)	 	the termination and liquidation does not occur proximate to a downturn in the
financial health of Ferro and Affiliates;

	 	(B)	 	the Plan and all arrangements required to be aggregated with the Plan under
Code Section 409A are terminated and liquidated;

	 	(C)	 	no payments, other than those that would be payable under the terms of the Plan
and the aggregated arrangements if the termination and liquidation had not occurred,
are made within twelve (12) months of the date Ferro takes all necessary action to
irrevocably terminate and liquidate the Plan;

	 	(D)	 	all payments are made within twenty-four (24) months of the date Ferro takes
all necessary action to irrevocably terminate and liquidate the Plan; and

	 	(E)	 	Ferro and Affiliates do not adopt a new arrangement that would be aggregated
with any terminated arrangement under Code Section 409A, at any time within three (3)
years following the date Ferro takes all necessary action to irrevocably terminate and
liquidate the Plan.

Similarly, Ferro may, in its discretion, provide by amendment to liquidate and terminate the Plan
where the termination and liquidation occurs within twelve (12) months of a corporate dissolution
taxed under Code Section 331, or with the approval of a bankruptcy court pursuant to 11 United
States Code § 503(b)(1)(A), provided that all amounts deferred under the Plan are included in the
Participants’ gross incomes in the latest of the following years (or, if earlier, the taxable year
in which the amount is actually or constructively received):

	 	(A)	 	the calendar year in which the termination occurs;

	 	(B)	 	the calendar year in which the amount is no longer subject to a substantial
risk of forfeiture; or

	 	(C)	 	the first calendar year in which the payment is administratively practicable.

ARTICLE IX

FERRO GROUP COMPANIES

	9.1	 	List of Ferro Group Companies. The Ferro Group Companies as of the Amendment and
Restatement Date are Ferro and the Affiliates of Ferro listed on Appendix B to this Plan.
Ferro may from time to time add or remove Ferro Affiliates from the list of Ferro Group
Companies by written action of its Chief Executive Officer. The addition or deletion will not
require a formal amendment to this Plan.

	9.2	 	Delegation of Authority. Ferro is fully empowered to act on behalf of itself
and the other Ferro Group Companies as it may deem appropriate in maintaining this Plan and
any Trust. The adoption by Ferro of any amendment to this Plan or any Trust, or the
termination of this Plan or any Trust, will constitute and represent, without any further
action on the part of any Ferro Group Company, the approval, adoption, ratification or
confirmation by each Ferro Group Company of any amendment or termination. In addition, the
appointment of or removal by Ferro of any Administrator, any trustee or other person under
this Plan or any Trust will constitute and represent, without any further action on the part
of any Ferro Group Company, the appointment or removal by each Ferro Group Company of such
person.

ARTICLE X

MISCELLANEOUS

	10.1	 	No Implied Rights. Neither the establishment of this Plan nor any amendment of this
Plan will be construed as giving any Participant, Beneficiary or any other person any legal or
equitable right unless the right is specifically provided for in this Plan or conferred by
specific action of Ferro in accordance with the terms and provisions of this Plan. Except as
expressly provided in this Plan, neither Ferro nor any other Ferro Group Company will be
required or be liable to make any payment under this Plan.

	10.2	 	No Right to Ferro Group Company Assets. Neither the Participant nor any other person
will acquire by reason of this Plan any right in or title to any assets, funds or property of
Ferro or any other Ferro Group Company whatsoever including, without limitation, any specific
funds, assets or other property which Ferro or any other Ferro Group Company, in its sole
discretion, may set aside in anticipation of a liability hereunder. Any benefits which become
payable under this Plan will be paid from the general assets of the appropriate Ferro Group
Company. No assets of Ferro or any other Ferro Group Company will be held in any way as
collateral security for the fulfilling of the obligations of Ferro or the Ferro Group
Companies under this Plan. No assets of Ferro or any other Ferro Group Company will be
pledged or otherwise restricted in order to meet the obligations of this Plan. The
Participant will have only a contractual right to the amounts, if any, payable hereunder
unsecured by any asset of Ferro or any other Ferro Group Company. Nothing contained in this
Plan constitutes a guarantee by Ferro or any other Ferro Group Company that the assets of
Ferro or any other Ferro Group Company will be sufficient to pay any benefit to any person.

	10.3	 	No Employment Rights Created. This Plan will not be deemed to constitute a contract
of employment between Ferro or any of the other Ferro Group Companies and any Participant, or
to confer upon any Participant or employee the right to be retained in the service of Ferro or
any other Ferro Group Company for any period of time, nor shall any provision of this Plan
restrict the right of Ferro or any other Ferro Group Company to discharge or otherwise deal
with any Participant or other employees, with or without cause. Nothing in this Plan will be
construed as fixing or regulating the compensation or other benefits payable to any
Participant or other employee of Ferro or any other Ferro Group Company.

	10.4	 	Offset. If at the time payment is to be made under this Plan the Participant or
Qualified Spouse (or properly designated beneficiary or beneficiaries) or all such individuals
are indebted or obligated to a Ferro Group Company, then the payment of any 409A Accruals to
be made to the Participant or Qualified Spouse (or properly designated beneficiary or
beneficiaries) or all individuals may, at the discretion of the Administrator at the request
of the Ferro Group Company, be reduced by the amount of the indebtedness or obligation, but
only if:

	 	(A)	 	such debt is incurred in the ordinary course of the service relationship
between the Participant and the Ferro Group Company,

	 	(B)	 	in any taxable year of Ferro and Affiliates the entire amount of reduction does
not exceed $5,000, and

	 	(C)	 	the reduction is made at the same time and in the same amount as the debt
otherwise would have been due and collected from the Participant.

	 	 	 	An election by the Ferro Group Company not to request any reduction will not
constitute a waiver of the Ferro Group Company’s claim for such indebtedness or
obligation.

	10.5	 	No Assignment. Neither the Participant nor any other person will have any voluntary
or involuntary right to commute, sell, assign, pledge, anticipate, mortgage or otherwise
encumber, transfer, hypothecate or convey, in advance of actual receipt of the amount, if any,
payable under this Plan, or any part of the amount payable from this Plan, and any attempt to
do so will be void. All benefits under this Plan are expressly declared to be unassignable
and non-transferable. No part of the benefits under this Plan will be, before actual payment,
subject to seizure or sequestration for the payment of any debts, judgments, alimony or
separate maintenance owed by the Participant or any other person, or be transferable by
operation of law in the event of the Participant’s or any other person’s bankruptcy or
insolvency.

	10.6	 	Notice. Any notice required or permitted to be given under this Plan will be
sufficient if in writing and hand delivered, or sent by registered or certified mail or by
overnight delivery service, and:

	 	(A)	 	if given to a Ferro Group Company, delivered to the principal office of Ferro,
directed to the attention of the General Counsel; or

	 	(B)	 	if given to a Participant or Beneficiary, delivered to the last post office
address as shown on the Ferro Group Company’s or the Administrator’s records.

Notice will be deemed given as of the date of delivery or, if delivery is made by mail, as
of the date shown on the postmark or the receipt for registration or certification.

	10.7	 	Governing Laws. This Plan will be construed and administered according to the
internal substantive laws of the State of Ohio to the extent not preempted by the laws of the
United States of America.

	10.8	 	Incapacity. If the Administrator determines that any Participant or Qualified Spouse
(or properly designated beneficiary or beneficiaries) entitled to payment under this Plan is a
minor, a person declared incompetent or a person incapable of handling his or her property,
the Administrator may direct any payment to the guardian, legal representative or person
having the care and custody of the minor, incompetent or incapable person. The Administrator
may require proof of minority, incompetence, incapacity or guardianship, as it may deem
appropriate before making any payment. The Administrator will have no obligation thereafter
to monitor or follow the application of amounts so paid. Payments made pursuant to this
Section will completely discharge this Plan, any Trust, the Administrator, Ferro and all other
Ferro Group Companies with respect to the payments.

	10.9	 	Court Ordered Distributions. If a court issues a domestic relations order as defined
in Code Section 414(p)(1)(B) by which a spouse or former spouse or dependent or former
dependent of a Participant is provided an interest in the Participant’s benefits under this
Plan in connection with a property settlement or otherwise, the Administrator shall,
notwithstanding any election made by the Participant or the Participant’s eligibility for
distribution, distribute the spouse’s or former spouse’s or dependent’s or former dependent’s
interest in the Participant’s benefit under this Plan to that spouse or former spouse or
dependent or former dependent, as provided under such domestic relations order.

	10.10	 	Administrative Forms. All applications, elections and designations in connection
with this Plan made by a Participant or Qualified Spouse (or properly designated beneficiary
or beneficiaries) will become effective only when duly executed on forms provided by the
Administrator and filed with the Administrator.

	10.11	 	Independence of Plan. Except as otherwise expressly provided, this Plan will be
independent of, and in addition to, any other employee benefit agreement or plan or any rights
that may exist from time to time under any other agreement or plan.

	10.12	 	Responsibility for Legal Effect. Neither Ferro, any other Ferro Group Company, the
Administrator, nor any officer, member, delegate or agent of any of them, makes any
representations or warranties, express or implied, or assumes any responsibility concerning
the legal, tax, or other implications or effects of this Plan.

	10.13	 	Successors. The terms and conditions of this Plan will inure to the benefit of and
bind Ferro, the Ferro Group Companies, the Administrator and its members, the Participants,
their beneficiaries, and the successors, assigns, and personal representatives of any of them.

	10.14	 	Headings and Titles. The Section headings and titles of Articles used in this Plan
are for convenience of reference only and are not to be considered in construing this Plan.

	10.15	 	Appendices. The Appendices to this Plan constitute an integral part of this Plan
and are hereby incorporated into this Plan by this reference.

	10.16	 	Severability. If any provision or term of this Plan, or any agreement or instrument
required by the Administrator, is determined by a judicial, quasi-judicial or administrative
body to be void or not enforceable for any reason, all other provisions or terms of this Plan
or the agreement or instrument will remain in full force and effect and will be enforceable as
if the void or nonenforceable provision or term had never been a part of this Plan, or the
agreement or instrument.

	10.17	 	Actions by Ferro. Except as otherwise provided in this Plan, all actions of Ferro
under this Plan will be taken by the Board of Directors, and be evidenced in a writing
executed by an appropriate officer duly authorized.

	10.18	 	Spousal Consent and Release. If, in the opinion of Ferro, any present, former or
future spouse of an employee, entitled to benefits from this Plan shall by reason of law
appear to have any interest in the Plan benefits that may be or become payable hereunder to
such employee, Ferro may as a condition precedent to the making of a benefit payment
hereunder, require such written consent or release as in its discretion it shall determine to
be necessary, desirable or appropriate either to prevent or avoid any conflict or multiplicity
of claims, or to protect the rights of any such present, former or future spouse with respect
to the payment of any benefits under this Plan.

	10.19	 	Overpayments and Repayments. Benefits are provided only as set forth under the
terms of this Plan. Payments at a time or in an amount other than as set forth under the
terms of the Plan are not authorized, and Ferro will take all reasonable steps to ensure that
the amount and timing of benefit payments are in accordance with the Plan’s terms. In the
event Ferro determines that the benefits actually paid under this Plan to a Participant,
beneficiary or other person exceed the benefits that were properly payable, or were paid prior
to the proper time for payment, Ferro shall immediately demand repayment of such excess
amounts. The Participant, Beneficiary or other person is obligated to return such excess
amounts upon demand from Ferro. In the event the Participant, beneficiary or other person
fails to return the excess amounts, Ferro shall exercise any available legal remedies which
are consistent with the terms and purpose of the Plan. In the event excess amounts have been
paid as monthly disability payments, to the extent permitted under Code Section 409A, Ferro
shall reduce the amount of some or all of the remaining scheduled payments to offset the
excess amounts paid. If a Participant fails to continually comply with the terms and
conditions of the Noncompetition Agreement, then such Participant (or, if applicable, such
Participant’s Qualified Spouse or properly designated beneficiary or beneficiaries) shall,
upon written demand by Ferro, immediately repay to Ferro all payments theretofore received by
the Participant (or, if applicable, such Participant’s Qualified Spouse or properly designated
beneficiary or beneficiaries) under this Plan.

	10.20	 	References to Sections of Law and Certain Defined Terms.

	 	(A)	 	References in this Plan to the Code are to the Internal Revenue Code of 1986,
as heretofore and hereafter amended, and to similar provision of subsequent federal
law.

	 	(B)	 	References in this Plan to ERISA are to the Employee Retirement Income Security
Act of 1974, as heretofore and hereafter amended, and to similar provisions of
subsequent law.

	 	(C)	 	References in this Plan to Qualified Spouse refer to the Qualified Plan’s
defined term of “Qualified Spouse.”

	 	(D)	 	References in this Plan to Regular Compensation Formula refer to the normal
retirement benefit formula set forth in Section 5.5(a) of the Qualified Plan prior to
its elimination by amendment to the Qualified Plan executed December 19, 1990 and
effective December 31, 1989; however, for purposes of this Plan

	 	(1)	 	the term “regular compensation” under the Regular Compensation
Formula shall include

	 	(a)	 	Performance Share Plan awards which are awarded
before January 1, 2004,

	 	(b)	 	amounts payable under other agreements or
arrangements by reason of the proration or forfeiture of pre-January 1,
2004 Performance Share Plan awards, and

	 	(c)	 	awards or compensation under any other Company
incentive, reward or performance program or plan (which incentive,
reward or performance program or plan was in existence prior to
January 1, 2001) that was includable in “regular compensation” under
the terms of the Plan document in effect prior to January 1, 2001;

	 	(2)	 	amounts of deferred compensation and Performance Share Plan
awards shall be included in the year in which such amounts are earned and not
in the year to which such Performance Share Plan awards are deferred or in
which such Performance Share Plan awards are paid;

	 	(3)	 	amounts payable under clause (b) of item (1) above shall be
included in the year paid;

	 	(4)	 	except as otherwise provided above, unless the Compensation
Committee of the Board of Directors of the Company (or its predecessor or
successor, as applicable) determines otherwise, the term “regular compensation”
under the Regular Compensation Formula shall not include awards or compensation
under any Company incentive, reward or performance program or plan; and

	 	(5)	 	consistent with the foregoing provisions of this Section
10.20(D) and the terms of the Frozen Qualified Plan, no Participant shall be
credited with regular compensation under the Regular Compensation Formula on or
after April 1, 2006. In determining a Participant’s regular compensation for
the Plan Year ending December 31, 2006, a Participant shall be credited with
regular compensation equal to the amount of regular compensation that would
have been credited to the Participant pursuant to the foregoing provisions of
this Section 10.20(D) for such Plan Year if the Participant had continued to be
credited with regular compensation for the remainder of such Plan Year at the
rate of regular compensation in effect for such Participant for the period
beginning January 1, 2006 and ending on the earlier of March 31, 2006 or the
date of the Participant’s termination of employment (the “2006 Compensation
Determination Period”). Without limiting the foregoing, in determining the
rate of regular compensation in effect for a Participant for the 2006
Compensation Determination Period, regular compensation shall include awards or
compensation under any Company incentive, reward, or performance program or
plan that was in existence prior to January 1, 2001 and was includable in
“regular compensation” under the terms of the Plan document in effect prior to
January 1, 2001 (but excluding Performance Share Plan awards which were awarded
on or after January 1, 2004) that was earned during the 2006 Compensation
Determination Period.

	 	(E)	 	References in this Plan to “properly designated beneficiary or beneficiaries”
means the beneficiary or beneficiaries named in a written beneficiary designation by an
employee participant (delivered to the Company prior to such employee’s death in a form
acceptable to the Company) with the written consent of the Qualified Spouse thereto;
provided, however, that if a deceased employee is not survived by a Qualified Spouse
and has not delivered such a written beneficiary designation to the Company prior to
death, then the phrase “properly designated beneficiary or beneficiaries” means the
beneficiary or beneficiaries of such deceased employee’s Qualified Plan benefit or, if
none, such deceased employee’s estate.

12

Definitions

For purposes of this Plan, the following terms have the meanings set forth below where
used in this Plan and identified with initial capital letters:

	 	 	 
	Term	 	Meaning
	2005 Plan

	 	The provisions of the Plan set forth in Part B, which govern 409A

Accruals.
	409A Accruals

	 	All accruals under the Plan which are not Pre-2005 Accruals

(generally, amounts which are earned and vested under the Plan

after December 31, 2004).
	Administrator

	 	As defined in Section 7.1 of this Plan.
	Affiliate

	 	Any corporation or business entity during any period during which

it would be treated, together with the Company, as a single

employer for purposes of Code Section 414(b) or (c).
	Amendment and Restatement Date

	 	January 1, 2005
	Beneficial Owner

	 	“Beneficial owner” within the meaning of Rule 13d-3 under the

Exchange Act.
	Board of Directors

	 	Ferro’s Board of Directors.
	Change in Control

	 	A change in the control of Ferro that is required to be reported in

response to Item 6(e) of Schedule 14A of Regulation 14A promulgated

under the Exchange Act. For purposes of this definition, to the

extent consistent with the foregoing, a Change in Control will be

deemed to have occurred if and when:
	
 
	 	(a) any “person” (as such term is used in Sections 13(d)(3) and

14(d)(2) of the Exchange Act) is or becomes the beneficial owner,

directly or indirectly, of securities of Ferro representing

twenty-five percent (25%) or more of the combined voting power of

Ferro’s outstanding voting securities; or
	
 
	 	(b) during any period of two consecutive years, the individuals set

forth below in sub-paragraph (1) and (2) cease for any reason to

constitute at least a majority of the Board of Directors:
	
 
	 	(1) the individuals who at the beginning of such period constituted

the Board of Directors, and
	
 
	 	(2) any new director (other than a director designated by a person

who has entered into an agreement or arrangement with Ferro to

effect a transaction described in clause (a) or (c) of this

definition) whose appointment, election, or nomination for election

by Ferro’s shareholders, was approved by a vote of at least

two-thirds of the directors then still in office who either were

directors at the beginning of the period or whose appointment,

election or nomination for election was previously so approved; or
	
 
	 	(c) a merger or consolidation of Ferro or one of its subsidiaries

is consummated with or into any other corporation, other than a

merger or consolidation which would result in the holders of the

voting securities of Ferro outstanding immediately prior thereto

holding securities which represent immediately after such merger or

consolidation more than 50% of the combined voting power of the

voting securities of either Ferro or the other entity which

survives such merger or consolidation or the parent of the entity

which survives such merger or consolidation; or
	
 
	 	(d) a sale or disposition by Ferro of all or substantially all

Ferro’s assets is consummated.

Notwithstanding the foregoing, for purposes of triggering the

lump-sum cash payment under Section 4.8, only the occurrence of an

above-listed event which also constitutes a “change in the

ownership or effective control of the corporation, or in the

ownership of a substantial portion of the assets of the

corporation” under Code Section 409A shall constitute a Change in

Control.
	Code

	 	The Internal Revenue Code of 1986, as amended, and any lawful

regulations or other pronouncements promulgated under that Code.
	ERISA

	 	The Employee Retirement Income Security Act of 1974, as amended,

and any lawful regulations or pronouncements issued under that Act.
	Exchange Act

	 	The Securities Exchange Act of 1934, as amended, and any lawful

regulations or pronouncements issued under that Act.
	Ferro

	 	As defined in Section 1.2 of this Plan. Such term also includes

any successor corporation or business organization that

subsequently assumes Ferro’s duties and obligations under this

Plan.
	Ferro Group Companies

	 	As defined in Section 9.1 of this Plan.
	Noncompetition Agreement

	 	A noncompetition, nonsolicitation, nondisparagement and

confidentiality agreement in a form specified by Ferro.
	Person

	 	A “person” as defined under Section 3(a)(9) of the Exchange Act as

modified and used in Sections 13(d) and 14(d) of the Exchange Act,

excluding:
	
 
	 	(a) Ferro or any of its subsidiaries;

(b) a trustee or other fiduciary holding securities under an

employee benefit plan of the Company (or of any of its affiliates

as defined under Rule 12b-2 under Section 12 of the Exchange Act);

(c) an underwriter temporarily holding securities pursuant to an

offering of such securities; or

(d) a corporation owned, directly or indirectly, by the

shareholders of Ferro in substantially the same proportion as their

ownership of the stock of Ferro.
	this Plan

	 	The Ferro Corporation Supplemental Defined Benefit Plan for

Executive Employees, or a component plan, as appropriate
	Plan Year

	 	The calendar year.
	Pre-2005 Accruals

	 	Accruals that were earned and vested under the Plan as of December

31, 2004, as defined in the Overview to the Pre-2005 Plan.
	Pre-2005 Plan

	 	The provisions of the Plan set forth in Part A, which govern

Pre-2005 Accruals.
	Present Value Factors

	 	As used in this Plan, the term Present Value Factors means the

following:
	
 
	 	(a) For so long as the Pension Benefit Guaranty Corporation

(“PBGC”) publishes interest rates, present value shall be

calculated using the interest rate, in effect on the last day of

the calendar quarter preceding the date of the Participant’s

termination of employment date with all Ferro Group Companies, that

would be used by the PBGC in determining the present value of a

lump sum distribution in a termination of a tax-qualified defined

benefit pension plan and the UP 1984 Mortality Table; and
	
 
	 	(b) When the PBGC ceases to publish interest rates, present value

shall be calculated using an interest rate that is one percent (1%)

less than the interest rate on 10-year Treasury securities (rounded

to the nearest quarter percent) published by the Board of Governors

of the Federal Reserve System and in effect on the last day of the

calendar quarter preceding the date of the Participant’s

termination of employment date with all Ferro Group Companies and

the applicable mortality table under Code Section 417(e)(3)

prescribed by the Secretary of the Treasury based on the prevailing

insurance commissioners’ standard table used to determine reserves

for group annuity contracts issued on the date as of which present

value is being determined. Currently, the prevailing insurance

commissioners’ standard table is the 1983 Group Annuity Mortality

Table.
	Primary Death Benefit

	 	The “primary death benefit” provided under the Qualified Plan.
	Qualified Plan

	 	The Ferro Corporation Retirement Plan, Plan Number 001, as

heretofore amended and as hereafter may be amended or amended and

restated, together with any successor plan to which the liabilities

thereunder may be transferred.
	Qualified Spouse

	 	As defined in the Qualified Plan.
	Termination of Employment

	 	Effective prior to January 1, 2008:
	
 
	 	A Participant’s cessation of service with Ferro and the other Ferro

Group Companies, including subsidiaries and affiliates of the

foregoing, for any reason whatsoever, whether voluntarily or

involuntarily, including by reason of retirement, death, or

becoming Totally and Permanently Disabled.
	
 
	 	Notwithstanding the foregoing, for purposes of triggering payment

under Section 4.2, or 4.5, only such cessation of service which

constitutes a “separation from service” under Code Section 409A

shall constitute a Termination of Employment.
	
 
	 	Effective January 1, 2008: With respect to any Participant:
	
 
	 	(a) the separation from service within the meaning of Section 409A

of the Code, of such Participant with the Company and all of its

Affiliates, for any reason, including without limitation, quit,

discharge, or retirement, or a leave of absence (including military

leave, sick leave, or other bona fide leave of absence such as

temporary employment by the government if the period of such leave

exceeds the greater of six months, or the period for which the

Participant’s right to reemployment is provided either by statute

or by contract), or
	
 
	 	(b) a permanent decrease in the level of the Participant‘s service

to a level that is no more than twenty percent (20%) of its prior

level. For this purpose, whether a Termination of Employment has

occurred is determined based on whether it is reasonably

anticipated that no further services will be performed by the

Participant after a certain date or that the level of bona fide

services the Participant will perform after such date (whether as

an employee or as an independent contractor) would permanently

decrease to no more than twenty percent (20%) of the average level

of bona fide services performed (whether as an employee or an

independent contractor) over the immediately preceding 36-month

period (or the full period of services if the Participant has been

providing services less than 36 months).
	Time Required by Law

	 	The date designated for payment under the terms of the Plan or a

later date in the same calendar year or, if later, the fifteenth

(15th) day of the third calendar month following the date

designated for payment. (However, if the Participant’s taxable

year is not the calendar year, the date designated for payment

under the terms of the Plan or a later date in the Participant’s

taxable year or, if later, the fifteenth (15th) day of the third

calendar month following the date designated for payment.)
	
 
	 	If calculation of the amount of the benefit is not administratively

practicable due to events beyond the control of the Participant (or

the Participant’s Beneficiary), any date within the first taxable

year of the Participant in which calculation of the payment is

administratively practicable.
	
 
	 	If making the payment on the date designated under the terms of the

Plan would jeopardize the ability of Ferro and Affiliates to

continue as a going concern, the first taxable year of the

Participant in which making the payment would not have such effect.
	
 
	 	If there is a delay in payment by the Administrator other than with

the express or implied consent of the Participant, the first

taxable year of the Participant in which the dispute is resolved.

The dispute shall be deemed resolved on the earliest date upon

which: (a) the Participant and the Administrator or Ferro enter

into a legally binding settlement, (b) the Administrator or Ferro

concedes that an amount is payable, or (c) the Administrator or

Ferro is required to make payment pursuant to a final

non-appealable judgment or other binding decision. The foregoing

provisions shall apply only if, during the period of the dispute,

the Participant accepts any portion of the payment the

Administrator or Ferro willing to make (unless acceptance will

result in relinquishment of the claim to any remaining portion),

and makes prompt and reasonable good faith efforts to collect the

remaining portion of the payment which meet the requirements of

Code Section 409A (including the timely notice requirements).
	
 
	 	In the event the payment fails to fails to comply with Federal

securities laws or other laws, the earliest date at which Ferro

reasonably anticipates that the making of the payment will not

cause such violation.
	
 
	 	In the event the payment fails to be deductible under Code Section

162(m), or meets other conditions specified by the Commissioner of

the Internal Revenue Service, such later date as may be provided

under Code Section 409A.
	Totally and Permanently Disabled

	 	Any disability for which the Participant is determined to be

totally disabled by the Social Security Administration and that

qualifies a Participant for payment of benefits under the Qualified

Plan.

13

	 	 	 
	Trust

	 	The trust, if any, established pursuant to Section 6.1 of this Plan.

14

Ferro Group Companies

The following are the Ferro Group Companies:

Ferro Corporation

FEM Inc.

Ferro Color & Glass Corp. (formerly, Ferro Glass & Color Corporation)

Ferro International Services, Inc.

15

Ferro Pfanstiehl Laboratories, Inc.

Execution Page

To evidence this amended and restated Ferro Corporation Supplemental Defined Benefit
Plan for Executive Employees, Ferro Corporation, as Plan sponsor, has caused this document to
be executed by its duly authorized officer as of this 20th day of September, 2007.

	 	 	 
	
 
	 	Ferro Corporation
	By:

	 	

	
 
	 	James C. Bays

Vice President, General Counsel

& Secretary

16

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