Document:

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                                                                  EXHIBIT 10.66

                                   May 1, 2003

Mr. Scott M. Sellick
6810 Wynnbrook Court
Holland, OH 43528

Dear Scott,

Libbey Inc. (the "Corporation") considers it essential to the best interests of
its shareholders to foster the continuous employment of key management
personnel. In connection with this, the Corporation's Board of Directors (the
"Board") recognizes that, as is the case with many publicly held corporations,
the possibility of a change in control of the Corporation may exist and that the
uncertainty and questions that it may raise among management could result in the
departure or distraction of management personnel to the detriment of the
Corporation and its shareholders.

The Board has decided to reinforce and encourage the continued attention and
dedication of members of the Corporation's management, including yourself, to
their assigned duties without the distraction arising from the possibility of a
change in control of the Corporation.

In order to induce you to remain in its employ, the Corporation hereby agrees
that after this letter agreement (this "Agreement") has been fully executed, you
shall receive the severance benefits set forth in this Agreement in the event
your employment with the Corporation is terminated under the circumstances
described below subsequent to a Change in Control (as defined in Section 2).

1. Term of Agreement. This Agreement shall commence on the date hereof and shall
continue in effect through December 31, 2003; provided, however, that commencing
on January 1, 2004 and on each January 1 thereafter, the term of this Agreement
shall automatically be extended for one additional year unless, not later than
September 30 of the preceding year, the Corporation shall have given notice that
it does not wish to extend this Agreement; provided, further, that if a Change
in Control (as defined in Section 2), occurs during the original or any extended
term of this Agreement, the term of this Agreement shall continue in effect for
a period of not less than thirty-six (36) months beyond the month in which such
Change in Control occurred.

2. Change in Control. No benefits shall be payable hereunder unless there has
been a Change in Control. For purposes of this Agreement, a Change in Control
shall be deemed to occur if:

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                  (a) any Person (as defined below) is or becomes the Beneficial
Owner (as defined below), directly or indirectly, of securities of the
Corporation representing twenty percent (20%) or more of the combined voting
power of the Corporation's then outstanding securities. For purposes of this
Agreement, the term "Person" is used as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act");
provided, however, that the term shall not include the Corporation, any trustee
or other fiduciary holding securities under an employee benefit plan of the
Corporation, and any corporation owned, directly or indirectly, by the
shareholders of the Corporation, in substantially the same proportions as their
ownership of stock of the Corporation, and provided further that for purposes of
this subsection (a) the term person shall not apply to Baron Capital Group,
Inc., BAMCO, Inc., Baron Capital Management, Inc., Baron Asset Fund or Ronald
Baron (collectively the "Baron Group"), by virtue of their individual or
collective beneficial ownership of securities of the Corporation's outstanding
securities as of the date of this letter so long as the Baron Group does not
individually or collectively, beneficially own, or increase such beneficial
ownership to, twenty-five percent (25%) or more of the combined voting power of
the corporation's then outstanding securities. For purposes of this Agreement,
the term "Beneficial Owner" shall have the meaning given to such term in Rule
13d-3 under the Exchange Act;

                  (b) during any period of two (2) consecutive years (not
including any period prior to the execution of this Agreement), individuals who
at the beginning of such period constitute the Board, and any new director
(other than a director designated by a person who has entered into an agreement
with the Corporation to effect a transaction described in Sections 2(a), (c) or
(d)) whose election by the Board or nomination for election by the Corporation's
shareholders was approved by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors at the beginning of the
period or whose election or nomination for election was previously so approved
(hereinafter referred to as "Continuing Directors"), cease for any reason to
constitute at least a majority thereof;

                  (c) the shareholders of the Corporation approve a merger or
consolidation of the Corporation with any other corporation (or other entity),
other than a merger or consolidation which would result in the voting securities
of the Corporation outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of
the surviving entity) more than 662/3% of the combined voting power of the
voting securities of the Corporation or such surviving entity outstanding
immediately after such merger or consolidation;

                  (d) the shareholders of the Corporation approve a plan of
complete liquidation of the Corporation or an agreement for the sale or
disposition by the Corporation of all or substantially all of the Corporation's
assets; or

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                  (e) any Person is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Corporation representing ten percent (10%) or
more of the combined voting power of the Corporation's then outstanding
securities (a "10% Owner") and (A) the identity of the Chief Executive Officer
of the Corporation is changed during the period beginning sixty (60) days before
the attainment of the ten percent (10%) beneficial ownership and ending two (2)
years thereafter, or (B) individuals constituting at least one-third (1/3) of
the members of the Board at the beginning of such period shall cease for any
reason to serve on the Board during the period beginning sixty (60) days before
the attainment of the ten percent (10%) beneficial ownership and ending two (2)
years thereafter; provided, however, (i) that this subsection (e) shall not
apply to (i) any Person who is a 10% Owner as of the date hereof so long as such
Person does not increase such beneficial ownership by five percent (5%) or more
over the percentage so owned by such Person as of the date hereof; (ii) that
this subsection (e) shall not apply to the Baron Group by virtue of their
individual or collective beneficial ownership of securities of the Corporation's
outstanding securities as of the date of this letter so long as the Baron Group
does not individually or collectively, beneficially own, or increase such
beneficial ownership to, twenty-five percent (25%) or more of the combined
voting power of the corporation's then outstanding securities, and (iii) that
this subsection (e) shall not apply to Ariel Capital Management ("Ariel") by
virtue of its beneficial ownership of the Corporation's outstanding securities
as of the date of this Agreement so long as Ariel does not beneficially own, or
increase such beneficial ownership to, twenty percent (20%) or more of the
combined voting power of the Corporation's then outstanding securities.

3. Termination Following Change in Control.

         (i) General. During the term of this Agreement, if any of the events
described in Section 2 constituting a Change in Control shall have occurred, you
shall be entitled to the benefits provided in Section 4(ii) upon the subsequent
termination of your employment, provided that such termination occurs during the
term of this Agreement and within the two (2) year period immediately following
the date of such Change in Control, unless such termination is (a) because of
your death or Disability (as defined in Section 3(ii)), (b) by the Corporation
for Cause (as defined in Section 3(iii)), or (c) by you other than (1) for Good
Reason (as defined in Section 3(iv)), or (2) in a Covered Resignation (as
defined in Section 3(v)). In the event that you are entitled to such benefits,
such benefits shall be paid notwithstanding the subsequent expiration of the
term of this Agreement. In the event your employment with the Corporation is
terminated for any reason and subsequently a Change in Control occurs, you shall
not be entitled to any benefits hereunder.

         (ii) Disability. If, as a result of your incapacity due to physical or
mental illness, you shall have been absent from the full-time performance of
your duties with the Corporation for six (6) consecutive months, and within
thirty (30) days after written notice of termination is given you shall not have
returned to the full-time performance of your duties, your employment may be
terminated for "Disability."

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         (iii) Cause. Termination by the Corporation of your employment for
"Cause" shall mean termination (a) upon your willful and continued failure to
substantially perform your duties with the Corporation (other than any such
failure resulting from your incapacity due to physical or mental illness or any
such actual or anticipated failure after your issuance of a Notice of
Termination (as defined in Section 3(vi)) either (x) for Good Reason, or (y) in
connection with a Covered Resignation, after a written demand for substantial
performance is delivered to you by the Board, which demand specifically
identifies the manner in which the Board believes that you have not
substantially performed your duties, (b) upon your willful and continued failure
to substantially follow and comply with the specific and lawful directives of
the Board, as reasonably determined by the Board (other than any such failure
resulting from your incapacity due to physical or mental illness or any such
actual or anticipated failure after your issuance of a Notice of Termination for
Good Reason or in connection with a Covered Resignation), after a written demand
for substantial performance is delivered to you by the Board, which demand
specifically identifies the manner in which the Board believes that you have not
substantially performed your duties, (c) upon your willful commission of an act
of fraud or dishonesty resulting in material economic or financial injury to the
Corporation, or (d) upon your willful engagement in illegal conduct or gross
misconduct, in each case which is materially and demonstrably injurious to the
Corporation. For purposes of this Section 3(iii), no act, or failure to act, on
your part shall be deemed "willful" unless done, or omitted to be done, by you
not in good faith. Notwithstanding the foregoing, you shall not be deemed
terminated for Cause pursuant to Sections 3(iii)(a), (b) or (d) hereof unless
and until there shall have been delivered to you a copy of a resolution duly
adopted by the affirmative vote of not less than three-quarters (3/4) of the
entire membership of the Board at a meeting of the Board (after reasonable
notice to you, an opportunity for you, together with your counsel, to be heard
before the Board and a reasonable opportunity to cure), finding that in the
Board's good faith opinion you were guilty of conduct set forth above in this
Section 3(iii) and specifying the particulars thereof in reasonable detail.

         (iv) Good Reason. You shall be entitled to terminate your employment
for Good Reason. For purposes of this Agreement, "Good Reason" shall mean,
without your express written consent, the occurrence after a Change in Control
of any of the following circumstances unless, in the case of Sections 3(iv)(a),
(e), (f), (g), (h) or (i), such circumstances

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are fully corrected (provided such circumstances are capable of correction)
prior to the Date of Termination (as defined in Section 3(vii)) specified in the
Notice of Termination given in respect thereof:

                  (a) the assignment to you of any duties inconsistent with the
position in the Corporation that you held immediately prior to the Change in
Control, a significant adverse alteration in the nature or status of your
responsibilities or the conditions of your employment from those in effect
immediately prior to such Change in Control, including by virtue of the
Corporation ceasing to be a publicly-held corporation, or any other action by
the Corporation that results in a material diminution in your position,
authority, duties or responsibilities;

                  (b) the Corporation's reduction of your annual base salary as
in effect on the date hereof or as the same may be increased from time to time;

                  (c) the relocation of the Corporation's offices at which you
are principally employed immediately prior to the date of the Change in Control
(your "Principal Location") to a location more than thirty (30) miles from such
location, or the Corporation's requiring you, without your written consent, to
be based anywhere other than your Principal Location, except for required travel
on the Corporation's business to an extent substantially consistent with your
present business travel obligations;

                  (d) the Corporation's failure to pay to you any portion of
your current compensation or to pay to you any portion of an installment of
deferred compensation under any deferred compensation program of the Corporation
within seven (7) days of the date such compensation is due;

                  (e) the Corporation's failure to continue in effect any
material compensation or benefit plan or practice in which you participate
immediately prior to the Change in Control, unless an equitable arrangement
(embodied in an ongoing substitute or alternative plan) has been made with
respect to such plan, or the Corporation's failure to continue your
participation therein (or in such substitute or alternative plan) on a basis not
materially less favorable, both in terms of the amount of benefits provided and
the level of your participation relative to other participants, as existed at
the time of the Change in Control;

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                  (f) the Corporation's failure to continue to provide you with
benefits substantially similar in the aggregate to those enjoyed by you under
any of the Corporation's life insurance, medical, health and accident,
disability, pension, retirement, or other benefit plans or practices in which
you and your eligible family members were participating at the time of the
Change in Control, the taking of any action by the Corporation which would
directly or indirectly materially reduce any of such benefits, or the failure by
the Corporation to provide you with the number of paid vacation days to which
you are entitled on the basis of years of service with the Corporation in
accordance with the Corporation's normal vacation policy in effect at the time
of the Change in Control;

                  (g) the Corporation's failure to obtain a satisfactory
agreement from any successor to assume and agree to perform this Agreement, as
contemplated in Section 6 hereof;

                  (h) any purported termination of your employment that is not
effected pursuant to a Notice of Termination satisfying the requirements of
Section 3(vi) hereof (and, if applicable, the requirements of Section 3(iii)
hereof), which purported termination shall not be effective for purposes of this
Agreement; or

                  (i) the continuation or repetition, after written notice of
objection from you, of harassing or denigrating treatment of you inconsistent
with your position with the Corporation.

Your right to terminate your employment pursuant to this Section 3(iv) shall not
be affected by your incapacity due to physical or mental illness. Your continued
employment shall not constitute consent to, or a waiver of rights with respect
to, any circumstance constituting Good Reason hereunder.

         (v) Voluntary Termination and Covered Resignation. You shall be
entitled to voluntarily terminate your employment for any reason or no reason at
any time after a Change in Control. Any such termination which occurs within the
thirty (30) day period following the first anniversary of the occurrence of a
Change in Control shall constitute a resignation which entitles you to receive
benefits under this Agreement (a "Covered Resignation").

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         (vi) Notice of Termination. Any purported termination of your
employment by the Corporation or by you (other than termination due to death
which shall terminate your employment automatically) shall be communicated by
written Notice of Termination to the other party hereto in accordance with
Section 7. "Notice of Termination" shall mean a notice that shall indicate the
specific termination provision in this Agreement relied upon and shall set forth
in reasonable detail the facts and circumstances claimed to provide a basis for
termination of your employment under the provision so indicated.

         (vii) Date of Termination, Etc. "Date of Termination" shall mean (a) if
your employment is terminated due to your death, the date of your death; (b) if
your employment is terminated for Disability, thirty (30) days after Notice of
Termination is given (provided that you shall not have returned to the full-time
performance of your duties during such thirty (30) day period), and (c) if your
employment is terminated pursuant to Section 3(iii), Section 3(iv) or Section
3(v) or for any other reason (other than death or Disability), the date
specified in the Notice of Termination (which, in the case of a termination for
Cause shall not be less than thirty (30) days from the date such Notice of
Termination is given, and in the case of a termination for Good Reason or in
connection with a Covered Resignation shall not be less than fifteen (15) nor
more than sixty (60) days from the date such Notice of Termination is given).
Notwithstanding anything to the contrary contained in this Section 3(vii), if
within fifteen (15) days after any Notice of Termination is given, the party
receiving such Notice of Termination notifies the other party that a dispute
exists concerning the termination, then the Date of Termination shall be the
date on which the dispute is finally determined, either by mutual written
agreement of the parties, or otherwise; provided, however, that the Date of
Termination shall be extended by a notice of dispute only if such notice is
given in good faith and the party giving such notice pursues the resolution of
such dispute with reasonable diligence.

4. Compensation Upon Termination.

         Following a Change in Control during the term of this Agreement, you
shall be entitled to the benefits described below upon termination of your
employment, provided that such termination occurs during the term of this
Agreement and within the two (2) year period immediately following the date of
such Change in Control. The benefits to which you are entitled, subject to the
terms and conditions of this Agreement, are:

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         (i) If your employment shall be terminated by the Corporation for Cause
or by you other than (x) for Good Reason or (y) pursuant to a Covered
Resignation, the Corporation shall pay you your full base salary, when due,
through the Date of Termination at the rate in effect at the time Notice of
Termination is given, plus all other amounts to which you are entitled under any
compensation plan or practice of the Corporation at the time such payments are
due, and the Corporation shall have no further obligations to you under this
Agreement.

         (ii) If your employment by the Corporation shall be terminated by you
(x) for Good Reason or (y) pursuant to a Covered Resignation, or by the
Corporation other than for Cause or Disability, then you shall be entitled to
the benefits provided below:

                  (a) the Corporation shall pay to you your full base salary,
when due, through the Date of Termination at the rate in effect at the time
Notice of Termination is given, at the time specified in Section 4(iii), plus
all other amounts to which you are entitled under any compensation plan or
practice of the Corporation at the time such payments are due;

                  (b) in lieu of any further salary payments to you for periods
subsequent to the Date of Termination, the Corporation shall pay as severance
pay to you, at the time specified in Section 4(iii), a lump-sum severance
payment (together with the payments provided in Section 4(ii)(c) below, the
"Severance Payments") equal to the sum of the following:

                           (A)      three (3) times your annual base salary as
                                    in effect as of the Date of Termination or
                                    immediately prior to the Change in Control,
                                    whichever is greater; and

                           (B)      three (3) times the greater of (x) your
                                    targeted annual bonus as in effect as of the
                                    Date of Termination or immediately prior to
                                    the Change in Control, whichever is greater,
                                    or (y) your annual bonus for the year
                                    immediately preceding the Date of
                                    Termination;
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                  (c) notwithstanding any provisions of the Corporation's stock
option plans, incentive plans, or other similar plans, the restricted period
with respect to any restricted stock granted to you thereunder shall lapse and
such shares shall be distributed to you at the time specified in Section 4(iii);

                  (d) for a period of one (1) year following the Date of
Termination, the Corporation shall, at its sole expense as incurred, provide you
with financial planning services of substantially the same type and scope as
those which the Corporation was providing to you immediately prior to the Date
of Termination, or, if more favorable to you, the date of the Change in Control;

                  (e) for a period of two (2) years following the Date of
Termination, the Corporation shall, at its sole expense as incurred, provide you
with outplacement services, the scope and provider of which shall be selected by
you in your sole discretion;

                  (f) for a thirty-six (36) month period after such termination,
the Corporation shall continue to provide you and your eligible family members,
based on the cost sharing arrangement between you and the Corporation on the
date of the Change in Control, with medical and dental health benefits at least
equal to those which would have been provided to you and them if your employment
had not been terminated or, if more favorable to you, as in effect generally at
any time thereafter; provided, however, that if you become re-employed with
another employer and are eligible to receive medical and dental health benefits
under another employer's plans, the Corporation's obligations under this Section
4(ii)(f) shall be reduced to the extent comparable benefits are actually
received by you during the thirty-six (36) month period following your
termination, and any such benefits actually received by you shall be reported to
the Corporation. In the event you are ineligible under the terms of such benefit
plans or programs to continue to be so covered, the Corporation shall provide
you with substantially equivalent coverage through other sources or will provide
you with a lump-sum payment in such amount that, after all taxes on that amount,
shall be equal to the cost to you of providing yourself such benefit coverage.
At the termination of the benefits coverage under the second preceding sentence,
you, your spouse and your dependents shall be entitled to continuation coverage
pursuant to section 4980B of the Internal Revenue Code of 1986, as amended (the
"Code"), sections 601-608 of the Employee Retirement Income Security Act of
1974, as

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amended, and under any other applicable law, to the extent required by such
laws, as if you had terminated employment with the Corporation on the date such
benefits coverage terminates. The lump-sum shall be determined on a present
value basis using the interest rate provided in section 1274(b)(2)(B) of the
Code on the Date of Termination.

                  (g) (1) anything in this Agreement to the contrary
notwithstanding, if it shall be determined that any payment or distribution to
you or for your benefit (whether paid or payable or distributed or
distributable) pursuant to the terms of this Agreement or otherwise (the
"Payment") would be subject to the excise tax imposed by section 4999 of the
Code (the "Excise Tax"), then you shall be entitled to receive from the
Corporation an additional payment (the "Gross-Up Payment") in an amount such
that the net amount of the Payment and the Gross-Up Payment retained by you
after the calculation and deduction of all Excise Taxes (including any interest
or penalties imposed with respect to such taxes) on the payment and all federal,
state and local income tax, employment tax and Excise Tax (including any
interest or penalties imposed with respect to such taxes) on the Gross-Up
Payment provided for in this Section 4(ii)(g), and taking into account any lost
or reduced tax deductions on account of the Gross-Up Payment, shall be equal to
the Payment;

                  (2) all determinations required to be made under this Section
4(ii)(g), including whether and when the Gross-Up Payment is required and the
amount of such Gross-Up Payment, and the assumptions to be utilized in arriving
at such determinations shall be made by the Accountants (as defined below) which
shall provide you and the Corporation with detailed supporting calculations with
respect to such Gross-Up Payment within fifteen (15) business days of the
receipt of notice from you or the Corporation that you have received or will
receive a Payment. For the purposes of this Section 4(ii)(g), the "Accountants"
shall mean the Corporation's independent certified public accountants serving
immediately prior to the Change in Control. In the event that the Accountants
are also serving as accountant or auditor for the individual, entity or group
effecting the Change in Control, you shall appoint another nationally recognized
public accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accountants hereunder). All
fees and expenses of the Accountants shall be borne solely by the Corporation.
For the purposes of determining whether any of the Payments will be subject to
the Excise Tax and the amount of such Excise Tax, such Payments will be treated
as "parachute payments" within the meaning of section 280G of

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the Code, and all "parachute payments" in excess of the "base amount" (as
defined under section 280G(b)(3) of the Code) shall be treated as subject to the
Excise Tax, unless and except to the extent that in the opinion of the
Accountants such Payments (in whole or in part) either do not constitute
"parachute payments" or represent reasonable compensation for services actually
rendered (within the meaning of section 280G(b)(4) of the Code) in excess of the
"base amount," or such "parachute payments" are otherwise not subject to such
Excise Tax. For purposes of determining the amount of the Gross-Up Payment, you
shall be deemed to pay Federal income taxes at the highest applicable marginal
rate of Federal income taxation for the calendar year in which the Gross-Up
Payment is to be made and to pay any applicable state and local income taxes at
the highest applicable marginal rate of taxation for the calendar year in which
the Gross-Up Payment is to be made, net of the maximum reduction in Federal
income taxes which could be obtained from the deduction of such state or local
taxes if paid in such year (determined without regard to limitations on
deductions based upon the amount of your adjusted gross income), and to have
otherwise allowable deductions for Federal, state and local income tax purposes
at least equal to those disallowed because of the inclusion of the Gross-Up
Payment in your adjusted gross income. To the extent practicable, any Gross-Up
Payment with respect to any Payment shall be paid by the Corporation at the time
you are entitled to receive the Payment and in no event will any Gross-Up
Payment be paid later than five days after the receipt by you of the
Accountant's determination. Any determination by the Accountants shall be
binding upon the Corporation and you. As a result of uncertainty in the
application of section 4999 of the Code at the time of the initial determination
by the Accountants hereunder, it is possible that the Gross-Up Payment made will
have been an amount less than the Corporation should have paid pursuant to this
Section 4(ii)(g) (the "Underpayment"). In the event that the Corporation
exhausts its remedies pursuant to Section 4(ii)(g)(3) and you are required to
make a payment of any Excise Tax, the Underpayment shall be promptly paid by the
Corporation to or for your benefit; and

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                  (3) you shall notify the Corporation in writing of any claim
by the Internal Revenue Service that, if successful, would require the payment
by the Corporation of the Gross-Up Payment. Such notification shall be given as
soon as practicable after you are informed in writing of such claim and shall
apprise the Corporation of the nature of such claim and the date on which such
claim is requested to be paid. You shall not pay such claim prior to the
expiration of the 30-day period following the date on which you give such notice
to the Corporation (or such shorter period ending on the date that any payment
of taxes, interest and/or penalties with respect to such claim is due). If the
Corporation notifies you in writing prior to the expiration of such period that
it desires to contest such claim, you shall:

                        (A) give the Corporation any information reasonably
requested by the Corporation relating to such claim;

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

                        (C) cooperate with the Corporation in good faith in
order to effectively contest such claim; and

                        (D) permit the Corporation to participate in any
proceedings relating to such claims;

provided, however, that the Corporation shall bear and pay directly all costs
and expenses (including additional interest and penalties) incurred in
connection with such contest and shall indemnify you for and hold you harmless
from, on an after-tax basis, any Excise Tax or income tax (including interest
and penalties with respect thereto) imposed as a result of such representation
and payment of all related costs and expenses. Without limiting the foregoing
provisions of this Section 4(ii)(g), the Corporation shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct you to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner,

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and you agree to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more
appellate courts, as the Corporation shall determine; provided, however, that if
the Corporation directs you to pay such claim and sue for a refund, the
Corporation shall advance the amount of such payment to you, on an interest-free
basis, and shall indemnify you for and hold you harmless from, on an after-tax
basis, any Excise Tax or income tax (including interest or penalties with
respect thereto) imposed with respect to such advance or with respect to any
imputed income with respect to such advance (including as a result of any
forgiveness by the Corporation of such advance); provided, further, that any
extension of the statute of limitations relating to the payment of taxes for the
taxable year of you with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. Furthermore, the Corporation's
control of the contest shall be limited to issues with respect to which a
Gross-Up Payment would be payable hereunder and you shall be entitled to settle
or contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority;

                  (h) in any situation where under applicable law the
Corporation has the power to indemnify (or advance expenses to) you in respect
of any judgments, fines, settlements, loss, cost or expense (including
attorneys' fees) of any nature related to or arising out of your activities as
an agent, employee, officer or director of the Corporation or in any other
capacity on behalf of or at the request of the Corporation, the Corporation
shall promptly on written request, indemnify (and advance expenses to) you to
the fullest extent permitted by applicable law, including but not limited to
making such findings and determinations and taking any and all such actions as
the Corporation may, under applicable law, be permitted to have the discretion
to take so as to effectuate such indemnification or advancement. Such agreement
by the Corporation shall not be deemed to impair any other obligation of the
Corporation respecting your indemnification otherwise arising out of this or any
other agreement or promise of the Corporation or under any statute;

                  (i) the Corporation shall furnish you for six (6) years
following the Date of Termination (without reference to whether the term of this
Agreement continues in effect) with directors' and officers' liability insurance
insuring you against insurable events which occur or have occurred while you
were a director or officer of the

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Corporation, such insurance to have policy limits aggregating not less than the
amount in effect immediately prior to the Change in Control, and otherwise to be
in substantially the same form and to contain substantially the same terms,
conditions and exceptions as the liability issuance policies provided for
officers and directors of the Corporation in force from time to time, provided,
however, that such terms, conditions and exceptions shall not be, in the
aggregate, materially less favorable to you than those in effect on the date
hereof; provided, further, that if the aggregate annual premiums for such
insurance at any time during such period exceed one hundred and fifty percent
(150%) of the per annum rate of premium currently paid by the Corporation for
such insurance, then the Corporation shall provide the maximum coverage that
will then be available at an annual premium equal to one hundred and fifty
percent (150%) of such rate; and

                  (j) you shall be fully vested in your accrued benefits under
any qualified or nonqualified pension, profit sharing, deferred compensation or
supplemental plans maintained by the Corporation for your benefit, and the
Corporation shall provide you with additional fully vested benefits under such
plans in an amount equal to the benefits which you would have accrued had you
continued your employment with the Corporation for three (3) additional years
following your Date of Termination; provided, however, that to the extent that
the acceleration of vesting or enhanced accrual of such benefits would violate
any applicable law or require the Corporation to accelerate the vesting of the
accrued benefits of all participants in such plan or plans or to provide
additional benefit accruals to such participants, the Corporation shall pay you
a lump-sum payment at the time specified in Section 4(iii) in an amount equal to
the value of such benefits; provided, further, that to the extent that the
present value of all benefits payable to you under this Section 4(ii)(j) is less
than $250,000, the Corporation shall pay you a lump-sum payment at the time
specified in Section 4(iii) in an amount equal to the difference between
$250,000 and the amount of such benefits which are otherwise payable to you
under this Section 4(ii)(j); provided, further, that if you are eligible to
receive grandfathered benefits under the Corporation's pension plan, the
provisions of this Section 4(ii)(j) shall apply to such grandfathered benefits,
without reduction for age, in addition to any other benefits to which you are
entitled under this Section 4(ii)(j).

<PAGE>

Page Fifteen

         (iii) The payments provided for in Sections 4(ii)(a), (b), (c), (d) and
(j) shall be made not later than the fifth day following the Date of
Termination; provided, however, that if the amounts of such payments cannot be
finally determined on or before such day, the Corporation shall pay to you on
such day an estimate, as determined in good faith by the Corporation, of the
minimum amount of such payments and shall pay the remainder of such payments
(together with interest at the rate provided in section 1274(b)(2)(B) of the
Code) as soon as the amount thereof can be determined but in no event later than
the thirtieth day after the Date of Termination. In the event that the amount of
the estimated payments exceeds the amount subsequently determined to have been
due, such excess shall constitute a loan by the Corporation to you, payable on
the fifth day after demand by the Corporation (together with interest at the
rate provided in section 1274(b)(2)(B) of the Code).

         (iv) You shall not be required to mitigate the amount of any payment
provided for in this Section 4 by seeking other employment or otherwise nor,
except as provided in Section 4(ii)(f), shall the amount of any payment or
benefit provided for in this Section 4 be reduced by any compensation earned by
you as the result of employment by another employer or self-employment, by
retirement benefits, by offset against any amount claimed to be owed by you to
the Corporation, or otherwise.

5. Acceleration of Vesting of Options. Notwithstanding anything contained
herein, in the event of a Change in Control during the term of this Agreement,
all outstanding options ("Options"), if any, granted to you under any of the
Corporation's stock option plans, incentive plans or other similar plans (or
options substituted therefor covering the stock of a successor corporation)
shall, effective immediately prior to such Change in Control, become fully
vested and exercisable as to all shares of stock covered thereby.

6. Successors; Binding Agreement.

         (i) The Corporation shall require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Corporation to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Corporation would be required to perform it if no such
succession had taken place. Failure of the Corporation to obtain such assumption
and agreement prior to the effectiveness of any such succession shall be a
breach of this Agreement and shall entitle you to terminate your employment and
receive compensation from the Corporation in the same amount and on the same
terms to which you would be entitled hereunder if you terminate your employment
for Good Reason following a Change in Control, except that for purposes of
implementing the foregoing, the date on which any such succession becomes
effective shall be

<PAGE>

Page Sixteen

deemed the Date of Termination. Unless expressly provided otherwise,
"Corporation" as used herein shall mean the Corporation as defined in this
Agreement and any successor to its business and/or assets as aforesaid.

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

7. Notice. For the purpose of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth on the first page of this
Agreement, provided that all notices to the Corporation shall be directed to the
attention of the Board with a copy to the Secretary of the Corporation, or to
such other address as either party may have furnished to the other in writing in
accordance herewith, except that notice of change of address shall be effective
only upon receipt.

8. Non- Compete, Confidentiality and Non-Solicitation Covenants.

         (i) Non-Compete. In consideration of and in connection with the
benefits provided to you under this Agreement, and in order to protect the
goodwill of the Corporation, you hereby agree that, if your employment is
terminated pursuant to a Covered Resignation, then, for a period of twelve (12)
months commencing on the Date of Termination, you shall not, directly or
indirectly, own, manage, operate, join, control or participate in the ownership,
management, operation or control of, or be connected as a director, officer,
employee, partner, consultant or otherwise with any of the following entities
(or any subsidiary of any such entity) other than as a shareholder or beneficial
owner owning 5% or less of the outstanding securities of a public company:
Durand International, the Anchor Hocking unit of Newell Co., Cardinal
International, Inc., the Indiana Glass unit of Lancaster Colony Corporation,
Oneida LTD or any glass tableware manufacturer, seller or importer for Bormioli
Rocco Casa SpA, for the Kedaung group of companies of Indonesia or for the
Sisecam group of companies of Turkey including Pasabahce.

<PAGE>

Page Seventeen

         (ii) Confidentiality. You hereby agree that, for the period commencing
on the Date of Termination and terminating on the third anniversary thereof, you
shall not, directly or indirectly, disclose or make available to any person,
firm, corporation, association or other entity for any reason or purpose
whatsoever, any Confidential Information (as defined below). You agree that,
upon termination of your employment with the Corporation, all Confidential
Information in your possession that is in written or other tangible form
(together with all copies or duplicates thereof, including computer files) shall
be returned to the Corporation and shall not be retained by you or furnished to
any third party, in any form except as provided herein; provided, however, that
you shall not be obligated to treat as confidential, or return to the

         (iii) Corporation copies of any Confidential Information that (i) was
publicly known at the time of disclosure to you, (ii) becomes publicly known or
available thereafter other than by any means in violation of this Agreement or
any other duty owed to the Corporation by any person or entity, or (iii) is
lawfully disclosed to you by a third party. As used in this Agreement, the term
"Confidential Information" means: information disclosed to you or known by you
as a consequence of or through your relationship with the Corporation, about the
customers, employees, business methods, public relations methods, organization,
procedures or finances, including, without limitation, information of or
relating to customer lists, of the Corporation and its affiliates.

         (iv) Non-Solicitation. You hereby agree that, for the period commencing
on the Date of Termination and terminating on the third anniversary thereof, you
shall not, either on your own account or jointly with or as a manager, agent,
officer, employee, consultant, partner, joint venturer, owner or shareholder or
otherwise on behalf of any other person, firm or corporation, directly or
indirectly solicit or attempt to solicit away from the Corporation any of its
officers or employees or offer employment to any person who, on or during the
six (6) months immediately preceding the date of such solicitation or offer, is
or was an officer or employee of the Corporation; provided, however, that a
general advertisement to which an employee of the Corporation responds shall in
no event be deemed to result in a breach of this Section 8(iii).

9. Funding of Obligations. Within a reasonable time following the execution and
delivery of this Agreement by you and the Corporation, the Corporation shall
partially fund its obligations to provide benefits hereunder (including, without
limitation, its obligations under Section 4(ii)(g)) by establishing and
irrevocably partially funding a trust for your benefit and the benefit of other
executives of the Corporation with whom

<PAGE>
Page Eighteen

the Corporation has entered into agreements similar to this Agreement. The
Corporation shall initially contribute $1000 to such trust. Such trust shall be
a grantor trust described in section 671 of the Code. Upon the occurrence of a
Potential Change in Control (as defined below), the Corporation shall fully fund
its obligations to provide benefits hereunder (including, without limitation,
its obligations under Section 4(ii)(g)) by irrevocably contributing funds to
such trust on your behalf. The amount of such contribution shall equal the then
present value of the Corporation's obligations under Section 4 hereof as
determined by the firms serving as the Corporation's actuaries and accountants
immediately prior to the Change in Control. Such actuaries and accountants shall
be paid by the Corporation. The establishment and funding of such trust shall
not affect the obligation of the Corporation to provide benefits under the terms
of this Agreement. For purposes of this Agreement a "Potential Change in
Control" shall be deemed to occur if:

                  (a) the Corporation enters into an agreement, the consummation
of which would result in the occurrence of a Change in Control;

                  (b) any Person (including the Corporation) publicly announces
an intention to take or to consider taking actions which, if consummated, would
constitute a Change in Control;

                  (c) any Person who is or becomes the Beneficial Owner,
directly or indirectly, of securities of the Corporation representing ten
percent (10%) or more of the combined voting power of the Corporation's then
outstanding securities, increases such Person's beneficial ownership of such
securities by five percent (5%) or more of the Corporation's then outstanding
securities over the percentage so owned by such Person on the date hereof
provided however, (i) that this subsection (c) shall not apply to the Baron
Group by virtue of their individual or collective beneficial ownership of
securities of the Corporation's outstanding securities as of the date of this
letter so long as the Baron Group does not individually or collectively,
beneficially own, or increase such beneficial ownership to, twenty-five percent
(25%) or more of the combined voting power of the corporation's then outstanding
securities, and (ii) that this subsection (c) shall not apply to Ariel by virtue
of its beneficial ownership of the Corporation's outstanding securities as of
the date of this Agreement so long as Ariel does not beneficially own, or
increase such beneficial ownership to, twenty percent (20%) or more of the
combined voting power of the Corporation's then outstanding securities; or

                  (d) the Board adopts a resolution to the effect that, for
purposes of this Agreement, a Potential Change in Control has occurred.

10. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing
and signed by you and such officer as may be specifically designated by the
Board. No waiver by either party hereto at any time of any breach by the other
party hereto of or

<PAGE>

Page Nineteen

compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly set
forth in this Agreement. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of Ohio
without regard to its conflicts of law principles. All references to sections of
the Exchange Act or the Code shall be deemed also to refer to any successor
provisions to such sections. Except as provided in Section 4(ii)(g) hereunder,
any payments provided for hereunder shall be paid net of any applicable
withholding required under federal, state or local law. The obligations of the
Corporation under Section 4 shall survive the expiration of the term of this
Agreement. The section headings contained in this Agreement are for convenience
only, and shall not affect the interpretation of this Agreement.

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

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

13. Suits, Actions, Proceedings, Etc..

         (i) Jurisdiction and Venue. No suit, action or proceeding with respect
to this Agreement, nor any judgment entered by any court in respect thereof, may
be brought in any court, domestic or foreign, or before any similar domestic or
foreign authority, other than in a court of competent jurisdiction in the State
of Ohio, and you and the Corporation hereby irrevocably waive any right which
you or the Corporation, as applicable, may otherwise have had to bring such a
suit, action, proceeding or judgment in any other court, domestic or foreign, or
before any similar domestic or foreign authority. You and the Corporation hereby
submit to the exclusive jurisdictions of such courts for the purpose of any such
suit, action, proceeding or judgment. By your execution and delivery of this
Agreement, you appoint the Secretary of the Corporation, at the Corporation's
office in Toledo, Ohio, as your agent upon which process may be served in any
such suit, action or proceeding; and by its execution and delivery of this
Agreement, the Corporation appoints the Secretary of the Corporation, at its
office in Toledo, Ohio, as its agent upon which process may be served in any
such suit, action or proceeding. Service of process upon such applicable agent,
together

<PAGE>

Page Twenty

with actual notice of such service given to you or the Corporation, as
applicable, in the manner provided in Section 7 hereof, shall be deemed in every
respect effective service of process upon the applicable party in any suit,
action, proceeding or judgment. Nothing herein shall be deemed to limit the
ability of you or the Corporation to serve any such writs, process or summonses
in any other manner permitted by applicable law. You and the Corporation hereby
irrevocably waive any objections which you or the Corporation, as applicable,
may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement brought in any court of
competent jurisdiction in the State of Ohio, and hereby further irrevocably
waive any claim that any such suit, action or proceeding brought in any such
court has been brought in an inconvenient forum. Notwithstanding the foregoing,
in the event that no court of competent jurisdiction in the State of Ohio will
accept such jurisdiction and venue, then any suit, action or proceeding with
respect to this Agreement, or any judgment entered by any court in respect
thereof, may be brought in any court of competent jurisdiction in the
continental United States which has jurisdiction over such suit, proceeding or
action and the parties thereto.

         (ii) Compensation During Dispute, Etc.. Your compensation during any
disagreement, dispute, controversy, claim, suit, action or proceeding
(collectively, a "Dispute") arising out of or relating to this Agreement or the
interpretation of this Agreement shall be as follows:

         If there is a termination by you or the Corporation followed by a
Dispute as to whether you are entitled to the payments and other benefits
provided under this Agreement, then, during the period of that Dispute the
Corporation shall pay you fifty percent (50%) of the amount specified in
Sections 4(ii)(a) and 4(ii)(b) hereof, and the Corporation shall provide you
with the other benefits provided in Section 4(ii) of this Agreement, if, but
only if, you agree in writing that if the Dispute is resolved against you, you
shall promptly refund to the Corporation all payments you receive under Sections
4(ii)(a) and 4(ii)(b) of this Agreement plus interest at the rate provided in
Section 1274(d) of the Code, compounded quarterly. If the Dispute is resolved in
your favor, promptly after resolution of the dispute the Corporation shall pay
you the sum that was withheld during the period of the Dispute plus interest at
the rate provided in Section 1274(d) of the Code, compounded quarterly.

         (iii) Legal Fees. The Corporation shall pay to you all legal fees and
expenses incurred by you in connection with any Dispute arising out of or
relating to this Agreement or the interpretation thereof (including, without
limitation, all such fees

<PAGE>

Page Twenty-One

and expenses, if any, incurred in contesting or disputing any termination of
your employment or in seeking to obtain or enforce any right or benefit provided
by this Agreement, or in connection with any tax audit or proceeding to the
extent attributable to the application of section 4999 of the Code to any
payment or benefit provided hereunder).

14. Entire Agreement. This Agreement restates and supersedes the prior agreement
between you and the corporation dated May 27, 1998 as amended May 21, 1999. This
Agreement sets forth the entire agreement of the parties hereto in respect of
the subject matter contained herein and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or
warranties, whether oral or written, by any officer, employee or representative
of any party hereto; and any prior agreement of the parties hereto in respect of
the subject matter contained herein, including, without limitation, any prior
severance agreements, is hereby terminated and cancelled; provided, however,
that the Employment Agreement, dated as of May1, 2003 by and between you and the
Corporation, as amended, shall remain in full force and effect and shall,
pursuant to the terms and conditions thereof, provide certain severance benefits
to you upon certain terminations of employment. Any of your rights hereunder
shall be in addition to any rights you may otherwise have under benefit plans or
agreements of the Corporation to which you are a party or in which you are a
participant, including, but not limited to, any Corporation sponsored employee
benefit plans and stock options plans. Provisions of this Agreement shall not in
any way abrogate your rights under such other plans and agreements.

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

                                             Sincerely,

                                             LIBBEY INC.

                                             By:    /s/ Arthur H. Smith
                                                ------------------------------
                                             Its: Vice President and Secretary

Agreed and Accepted as of the,
1st  day of May, 2003

/s/ Scott M. Sellick
----------------------------
Scott M. Sellick<PAGE>

                                                   EXHIBIT 10.1

                             R. G. BARRY CORPORATION
                          EMPLOYEE STOCK PURCHASE PLAN
               (REFLECTS AMENDMENTS AND REVISIONS FOR SHARE SPLITS
                    AND SHARE DIVIDENDS THROUGH MAY 8, 2003)

1.   PURPOSE
     -------

         The purpose of the R. G. Barry Corporation Employee Stock Purchase Plan
(the "Plan") is to provide Associates of R. G. Barry Corporation (the "Company")
an opportunity to acquire an equity interest in the Company through the purchase
of Common Shares ("Shares") of the Company and thus develop a stronger incentive
to work for the continued success of the Company's operations. It is the
intention of the Company to have the Plan qualify as an "employee stock purchase
plan" under Section 423 of the Internal Revenue Code of 1986, as amended (the
"Internal Revenue Code"), and therefore, the provisions of the Plan shall be
construed so as to extend and limit participation in a manner consistent with
the requirements of Section 423(b) of such Code.

2.   ELIGIBILITY
     -----------

         A. Any Associate (as defined in Paragraph 19B) who shall have completed
at least twelve (12) consecutive months as such an Associate prior to the date
his participation in the Plan is to become effective shall be eligible to
participate in the Plan, subject to the limitations imposed by Section 423(b) of
the Internal Revenue Code.

         B. Any provision of the Plan to the contrary notwithstanding, no
Associate shall be granted an option:

                  (i) If, immediately after the grant, such Associate would own
         Shares and/or hold outstanding options to purchase Shares, possessing
         5% or more of the total voting power of the Company; or

                  (ii) which permits his rights to purchase Shares under all
         employee stock purchase plans of the Company and its parent and
         subsidiary corporations, if any, to accrue at a rate which exceeds
         $25,000 of fair market value of such Shares (determined at the time
         such option is granted) for each calendar year in which such stock
         option is outstanding at any time.

3.   TERMS OF THE PLAN
     -----------------

         A. The Plan will be conducted in separate terms of not more than 27
months each. Each Term will commence on such date as shall be determined from
time to time by the Board of Directors of the Company. Participation in any part
of any Term of the Plan shall neither limit, nor be a prerequisite to,
participation in any other Term or part thereof except that no Associate may
have more than one Payroll Deduction Authorization in effect under the Plan
simultaneously. Subject to Paragraph 11A, the number of Shares available during
each Term shall be determined by the Stock Purchase Plan Committee.

4.   PARTICIPATION IN THE PLAN
     -------------------------

         A. Eligible Associates will be notified of their eligibility by the
Company on or before the commencement of each Offering Period. An Offering
Period shall consist of the 30-day period immediately preceding the commencement
date of a Term.

         B. An Eligible Associate may become a participant ("Participant") by
completing the form provided by the Company and filing it with his supervisor
prior to the applicable date provided below.

<PAGE>

         C. An Eligible Associate who wishes to become a Participant for any
full Term of the Plan must file his Election to Purchase Form applicable to such
Term prior to the conclusion of the Offering Period immediately preceding the
date when such Term commences, and such Election to Purchase Form shall become
effective on such commencement date.

         D. An Associate who becomes an Eligible Associate after the
commencement of a Term may become a Participant for the last half of any Term of
the Plan. To do so, he must file his Election to Purchase Form applicable to
such period during the calendar month preceding the first anniversary of the
commencement date of such Term (the "mid-point"), and such Election to Purchase
Form shall become effective on that date.

         E. If a Participant in any Term of the Plan files another Election to
Purchase Form applicable to such Term, after he becomes a Participant in such
Term, such filing shall constitute an election under Paragraph 9 to withdraw all
funds then credited to the account of such Participant.

         F.   Participation in the Plan shall be voluntary.

5.   PAYROLL DEDUCTIONS
     ------------------

         A. At the time he enrolls in any Term of the Plan, a Participant shall
elect to have payroll deductions made from his pay on each pay day during the
time he is a Participant in that Term of the Plan in multiples of $1.00. The
minimum deduction for any Participant shall be $2.00. The maximum deduction for
each Participant shall be an amount equal to 10% of his annual Base Pay as of
the time of such enrollment.

         B. All payroll deductions made for a Participant shall be credited to
his account under the Plan. A Participant may not make any separate cash payment
into such account except in the event of a lay--off or leave of absence as
provided for in Paragraph 9D.

         C. During any Term of the Plan, a Participant may not elect to change
the rate of payroll deductions to be made from his pay for the remainder of that
Term of the Plan.

         D. Payroll deductions for a Participant shall commence on the date when
his Election to Purchase Form becomes effective and shall end on the termination
date of the Term of the Plan to which such Election to Purchase Form is
applicable, unless sooner terminated by the Participant as provided in Paragraph
9.

6.   GRANTING OF OPTION
     ------------------

         A. On the date when a Participant's Election to Purchase Form becomes
effective under Term II of the Plan, the Participant will be granted an option
for as many full Shares as he will be able to purchase with the payroll
deductions credited to his account during his participation in Term II of the
Plan pursuant to his Election to Purchase Form at a price equal to 85% of the
closing price of the Shares on the Exchange on such date.

         B. A Participant who files an Election to Purchase Form which becomes
effective on the date when any subsequent Term of the Plan commences shall be
granted an option, on such date, for as many full Shares as could be purchased,
using his payroll deductions, at a price equal to 85% of the Closing Price of
the Shares on the Exchange on such date.

         C. A Participant who files an Election to Purchase Form which becomes
effective at the mid-point of any Term of the Plan shall be granted an option,
on such date, for as many full Shares as could be purchased, using his payroll
deductions, at a price equal to 85% of the higher of (a) the closing price of
the Shares on the Exchange on such mid-point or (b) the closing price of the
Shares on the Exchange on the date when that Term commenced.

<PAGE>

         D. The option price of Shares purchased with payroll deductions made
during each Term of the Plan for an Associate who becomes a Participant in that
Term of the Plan on the date when such Term commences shall be the lower of:

                  (i) 85% of the closing price of the Shares on the Exchange on
         that date; or

                  (ii) 85% of the closing price of the Shares on the Exchange on
         the date when such Term ends.

         E. The option price of Shares purchased with payroll deductions made
during the last half of each Term of the Plan for an Associate who becomes a
Participant in that Term of the Plan on the mid-point thereof, shall be the
lower of:

                  (i) 85% of the higher of (a) the closing price of the Shares
         on the Exchange on such mid-point, or (b) the closing price of the
         Shares on the Exchange on the date when that Term commenced; or

                  (ii) 85% of the closing price of the Shares on the Exchange on
         the date when such Term ends.

         F. Notwithstanding subparagraphs D and E of this Paragraph 6, no option
price applicable to an option granted under the Plan shall be less than the
lesser of:

                  (i) an amount equal to 85% of the fair market value of the
         Shares at the time such option is granted; or

                  (ii) an amount equal to 85% of the fair market value of the
         Shares at the time such option is exercised.

7.   EXERCISE OF OPTION
     ------------------

         A. (i) Unless a Participant elects otherwise, as provided hereinbelow,
his option for the purchase of Shares with payroll deductions made during any
Term of the Plan will be exercised automatically for him on the date when that
Term ends for the purchase of not more than the number of full Shares which the
accumulated payroll deductions in his account at that time will purchase at the
applicable option price, subject to Paragraph 7B; provided, that in no event may
a Participant purchase more Shares under any Term of the Plan than the number of
Shares for which he was granted an option when he became a Participant in that
Term as provided by Paragraph 6 of the Plan.

                  (ii) By completing an Account Settlement Form provided by the
Company and filing it with his supervisor on or before the date when any Term of
the Plan ends, a Participant may elect, effective at the termination of that
Term, to:

                  (a) withdraw all the accumulated payroll deductions in his
         account at that time, with interest computed as provided in Paragraph
         10; or

                  (b) exercise his option for a specified number of full Shares
         less than the number of full Shares for which his option would
         otherwise be automatically exercised, and receive the balance in cash
         with interest computed as provided in Paragraph 10.

         B. No option granted to a Participant under any Term of the Plan
pursuant to Paragraph 6 may be exercised at the date when such Term ends to
purchase more Shares than can be purchased in accordance with any applicable law
or regulation then in effect, at the applicable option price, with the sum then
accumulated in his payroll deduction account.

<PAGE>

         C. Any option granted to a Participant under any Term of the Plan and
not exercised on the date when that Term ends shall lapse as of such date.

8.   DELIVERY
     --------

         As promptly as practicable after the termination of each Term of the
Plan, the Company will deliver to each Participant as appropriate either (A)
certificates for Shares purchased upon the exercise of his option, together with
a cash payment equal to the balance (with interest computed as provided in
Paragraph 10) of any payroll deductions credited to his account during such Term
and not used for the purchase of Shares, or (B) a cash payment equal to the
total of the payroll deductions credited to his account during such Term and
interest on such payroll deductions computed as provided in Paragraph 10.

9.   WITHDRAWAL OR TERMINATION
     -------------------------

         A. A Participant may withdraw payroll deductions credited to his
account under the Plan at any time by completing a Form provided by the Company
and filing it with his supervisor. All of the Participant's payroll deductions
credited to his account will be paid to him promptly after such filing, and no
further payroll deductions will be made from his pay except in accordance with a
new Election to Purchase Form filed in accordance with Paragraph 4 with respect
to a subsequent Term.

         B. A Participant's withdrawal will not have any effect upon his
eligibility to participate in any succeeding Term (or part thereof) of the Plan
nor in any similar plan which may be adopted by the Company in the future.

         C. Upon termination of a Participant's employment prior to the last day
of a Term of the Plan for any reason, his participation in that Term will end
and the payroll deductions then credited to his account will be returned to him
or, in the case of his death, to the person or persons entitled thereto under
Paragraph 14.

         D. If an Associate retires or dies during a Term, he or his legal
representative, respectively, may elect to continue participation for the
remainder of the Term by making cash contributions in lieu of payroll deductions
or to terminate participation pursuant to Paragraph 9C. If an Associate is laid
off or takes a leave of absence, he may elect to suspend payroll deductions, to
continue his participation by making cash contributions in lieu of payroll
deductions or to terminate such deductions pursuant to Paragraph 9A.

         E. Any payroll deductions returned to a Participant or paid to any
person or persons in accordance with Paragraph 14, in either case as a result of
such Participant's withdrawal from, or termination of participation in, the
Plan, will be credited with interest computed as provided in Paragraph 10.

10.  INTEREST
     --------

         In any situation where the Plan provides for the payment of interest on
a Participant's payroll deductions, such interest shall be computed at the rate
of 7% per annum applied to the average amount in the Participant's account at
the end of each calendar month during the twelve--month period from the
commencement date of the Term or the anniversary date thereof and shall be
compounded each such interest year. The Stock Purchase Plan Committee shall
review such interest rate annually and may recommend to the Board of Directors
of the Company that such rate be adjusted.

11.  SHARES AND SHARE CERTIFICATES
     -----------------------------

         A. The Shares to be sold to Participants under the Plan may, at the
election of the Company, be either Treasury Shares or Shares originally issued
for such purpose. The maximum number of Shares of Stock which shall be made
available for sale under the Plan shall be 1,279,900 Shares, plus such number of
additional Shares as may from time to time be authorized by the shareholders for
that purpose, subject to adjustment upon changes in capitalization of the
Company as provided in Paragraph 16. If the total number of Shares for which
options would otherwise be granted at any time pursuant to Paragraph 6 shall

<PAGE>

exceed the number of Shares then available under the Plan (after deduction of
all Shares for which options have been exercised or are then outstanding), the
Company shall make a pro rata reduction of the number of Shares under each
option to be granted at that time in as nearly uniform a manner as shall be
practicable and as it shall determine to be equitable.

         B. The Participant will have no interest in the Shares covered by his
option and will not be deemed a shareholder with respect thereto until such
option has been exercised.

         C. Shares to be delivered to a Participant under the Plan will be
registered in the name of the Participant, or if the Participant so directs by
completing a Form provided by the Company and filing it with his supervisor
prior to the termination date of the applicable Term of the Plan, in the names
of the Participant and one such other person as may be designated by the
Participant as joint tenants with rights of survivorship, to the extent
permitted by the applicable law.

12.  USE OF FUNDS
     ------------

         All payroll deductions held by the Company under this Plan may be used
for any corporate purpose and the holder thereof shall not be obligated to
segregate such payroll deductions.

13.  ADMINISTRATION
     --------------

         The Plan shall be administered by an Employee Stock Purchase Plan
Committee consisting of three Associates of the Company who shall be appointed
by the Board of Directors. Such Committee shall be vested with full authority to
make, administer and interpret such rules and regulations as it deems necessary
to administer the Plan, and any determination, decision or action of such
Committee in connection with the construction, interpretation, administration or
application of the Plan shall be final, conclusive and binding upon all
Participants and any and all persons claiming under or through any Participant.

14.  DESIGNATION OF BENEFICIARY
     --------------------------

         A Participant may designate a beneficiary or beneficiaries to receive
any Shares and cash to the Participant's credit under the Plan in the event of
such Participant's death prior to delivery to him of such Shares and cash by
completing a Form provided by the Company and filing it with his supervisor.
Such designation may be changed by the Participant at any time by completing and
filing another such Form. Upon the death of a Participant and upon receipt by
the Company of proof deemed adequate by it of the identity and existence at the
Participant's death of a beneficiary validly designated by him under the Plan,
the Company shall deliver such Shares and cash to such beneficiary. In the event
of the death of a Participant and in the absence of a beneficiary validly
designated under the Plan who is living at the time of such Participant's death,
the Company shall deliver such Shares and cash to the executor or administrator
of the estate of the Participant, or if no such executor or administrator has
been appointed (to the knowledge of the Company), the Company in its discretion
may deliver such Shares and cash to the spouse or to any one or more dependents
or relatives of the Participant, or if no spouse, dependent or relative is known
to the Company then to such other person as the Company may designate. The
Company shall not be responsible for or be required to give effect to the
disposition of such Shares and cash in accordance with any will or other
testamentary disposition made by such Participant, or because of the provisions
of law concerning intestacy, or otherwise. No designated beneficiary shall,
prior to the death of the Participant by whom he has been designated, acquire
any interest in the Shares or cash credited to the Participant under the Plan.

15.  TRANSFERABILITY
     ---------------

         Neither payroll deductions credited to a Participant's account nor any
rights with regard to the exercise of an option or to receive Shares under the
Plan may be assigned, transferred, pledged or otherwise disposed of in any way
by the Participant (except by will or pursuant to the laws of

<PAGE>

inheritance), and any such attempted assignment, transfer, pledge (except by
will or pursuant to the laws of inheritance), or other disposition shall be null
and void and without effect, but the Company may treat such acts as an election
to withdraw from the Plan.

16.  ADJUSTMENTS UPON CHANGES IN CAPITALIZATION
     ------------------------------------------

         In the event of any stock dividend, split-up, recapitalization, merger,
consolidation, combination or exchange of shares, or the like, occurring during
any Term of the Plan, as a result of which shares of any class shall be issued
in respect of the outstanding Shares or common shares shall be changed into the
same or a different number of the same or another class or classes, the number
of Shares subject to each option granted during such Term and the option price
applicable to each such option shall be appropriately adjusted.

17.  AMENDMENT OR TERMINATION OF THE PLAN
     ------------------------------------

         The Board of Directors of the Company may at any time amend, suspend,
modify or terminate the Plan, except that no such termination can affect options
previously granted, and except that no amendment may make any change in any
option theretofore granted which would adversely affect the rights of any
Participant and no amendment may be made without prior approval of the
shareholders of the Company if such amendment would:

         A. require sale of more than 1,279,900 Shares under the Plan; or

         B. permit payroll deductions at a rate in excess of 10% of a
Participant's Base Pay.

18.  NOTICES
     -------

         All notices or other communications by a Participant to the Company
under or in connection with the Plan shall be deemed to have been duly given
when received by the Employee Stock Purchase Plan Committee, c/o R. G. Barry
Corporation, 13405 Yarmouth Road, N.W., Pickerington, Ohio 43147, or when
received in the form specified by the Company or at the location, or by the
person, designated by the Company for the receipt of such notice or other
communications.

19.  DEFINITIONS
     -----------

         A. "Base Pay" is the hourly rate, or the rate per pay period for
salaried Associates, which the Associate regularly receives on each pay day
without taking into account bonuses, overtime pay and all other forms of
additional compensation, except to the extent that the inclusion of any such
item is specifically approved by the Plan Committee.

         B. "Associate" means any person, including an officer, who is a full
time employee of the Company, and shall not include any person who is
customarily employed by the Company for twenty hours a week or less, or for less
than five months during a calendar year.

         C. "Exchange" means the principal stock exchange on which Shares of the
Company are traded.

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