Document:

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                                                          Exhibit No. 10(iii)(a)

                           2002 NON-EMPLOYEE DIRECTOR
                              STOCK OPTION PLAN OF
                             FANZ ENTERPRISES, INC.

         1. PURPOSE OF THE PLAN. This 2002 Non-Employee Director Stock Option
Plan of FanZ Enterprises, Inc. adopted on this 20th day of May, 2002, is
intended to encourage directors of the Company who are not officers or key
employees of the Company or any of its Subsidiaries to acquire or increase their
ownership of common stock of the Company. The opportunity so provided is
intended to foster in participants an incentive to put forth maximum effort for
the continued success and growth of the Company and its Subsidiaries, to aid in
retaining individuals who put forth such efforts, and to assist in attracting
the best available individuals to the Company in the future.

         2. DEFINITIONS. When used herein, the following terms shall have the
meaning set forth below:

            2.1 "BOARD" means the Board of Directors of FanZ Enterprises, Inc.

            2.2 "CHANGE IN CONTROL" means a change in control of the Company as
         a result of the occurrence of any of the following events:

            (a) any person (as such term is used in Sections 13(d) and 14(d) of
         the Exchange Act) other than an Exempt Person (an "Acquiring Person")
         is or becomes the beneficial owner, directly or indirectly, of Shares
         of the Company representing more than fifty percent (50%) of the
         combined voting power of the Company's then outstanding voting
         securities, other than either in connection with an issuance of Shares
         or series of related issuances of Shares approved by the Board (which
         Board must include at least a majority who were Continuing Directors
         and which transaction or series of related transactions must have been
         approved by a majority of the Continuing Directors) or as the result of
         the reduction in the number of issued and outstanding Shares pursuant
         to a transaction or series of related transactions approved by the
         Board;

            (b) there shall cease to be a majority of the Board comprised of
         Continuing Directors; or

            (c) (i) the Members of the Company approve a merger or consolidation
         of the Company with any other entity, other than a merger or
         consolidation which would result in the voting securities of the
         Company outstanding immediately prior thereto continuing to represent
         more than fifty percent (50%) of the combined voting power of the
         voting securities of the Company or such surviving entity outstanding
         immediately after such merger or consolidation, or (ii) the
         stockholders of the Company approve a plan of complete liquidation of
         the Company or an agreement for the sale or disposition by the Company
         of all or substantially all the Company's assets (other than to a more
         than fifty percent (50%) subsidiary or other controlled person of the
         Company).
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            2.3 "CODE" means the Internal Revenue Code of 1986, as in effect at
         the time of reference, or any successor revenue code which may
         hereafter be adopted in lieu thereof, and any reference to any specific
         provisions of the Code shall refer to the corresponding provisions of
         the Code as it may hereafter be amended or replaced.

            2.4 "COMMITTEE" means the Compensation Committee of the Board or any
         other committee appointed by the Board which is invested by the Board
         with responsibility for the administration of the Plan.

            2.5 "COMPANY" means FanZ Enterprises, Inc.

            2.6 "CONTINUING DIRECTOR" means a director of the Company who is not
         an Acquiring Person or an affiliate or associate thereof or any of
         their representatives and who was either a director of the Company
         before any Person became an Acquiring Person or whose nomination or
         election to the Board was recommended or approved by a majority of the
         then Continuing Directors or by an Exempt Person.

            2.7 "DIRECTORS" means directors who serve on the Board and who are
         not officers or key employees of the Company or any of its
         Subsidiaries.

            2.8 "EFFECTIVE DATE" means the date of the closing of the Company's
         initial public offering of Shares pursuant to a registration statement
         under the Securities Act of 1933, as amended, which has been filed
         with, and declared effective by, the Securities and Exchange Committee.

            2.9 "ERISA" means the Employee Retirement Income Security Act of
         1974, as in effect at the time of reference, or any successor law which
         may hereafter be adopted in lieu thereof, and any reference to any
         specific provisions of ERISA shall refer to the corresponding
         provisions of ERISA as it may hereafter be amended or replaced.

            2.10 "EXCHANGE ACT" means the Securities Exchange Act of 1934, as in
         effect at the time of reference, or any successor law which may
         hereafter be adopted in lieu thereof, and any reference to any specific
         provisions of the Exchange Act shall refer to the corresponding
         provisions of the Exchange Act as it may be amended or replaced.

            2.11 "EXEMPT PERSON" means the Company, any Subsidiary thereof, any
         employee benefit plan of the Company or any Subsidiary thereof, any
         entity holding Shares for or pursuant to the terms of any such plan,
         and any stockholder as of the close of business on the date the Plan is
         adopted by the Board or any affiliate of any such stockholder.

            2.12 "FAIR MARKET VALUE" means with respect to the Shares, the fair
         market value determined in good faith by the Committee, in its
         discretion, which determination may, but need not, be based on (i) the
         advice of an independent financial advisor (which may be the Company's
         regular outside auditors) or (ii) the last known price per Share

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         paid by a purchaser in an arm's length transaction; provided, however,
         that if there shall be a public market for the Shares, Fair Market
         Value shall mean (i) the closing price of the Shares on the principal
         stock exchange on which Shares are then traded or admitted to trading,
         on the last business day prior to the date on which the value is to be
         determined, (ii) if no sale takes place on such day on any such
         exchange, the average of the last reported closing bid and asked prices
         on such day as officially quoted on any such exchange, or (iii) if the
         Shares are not then listed or admitted to trading on any such exchange,
         the average of the last reported closing bid and asked prices on such
         day on the over-the-counter market. For purposes of (i) above, the
         National Association of Securities Dealers National Market System shall
         be deemed a principal stock exchange. If there shall be a public market
         for the Shares, and the foregoing references are unavailable or
         inapplicable, then the Fair Market Value shall be determined on the
         basis of the appropriate public market price indicator as determined by
         the Committee, in its sole discretion. Notwithstanding the foregoing,
         with respect to Options granted on, or as of, the date of the closing
         of the Company's initial public offering of Shares pursuant to a
         registration statement under the Securities Act of 1933, as amended,
         which has been filed with, and declared effective by, the Securities
         and Exchange Committee, Fair Market Value means the initial price at
         which Shares are sold in such offering.

            2.13 "OPTION" means the right to purchase the number of Shares
         specified by the Plan at a price and for a term fixed by the Plan, and
         subject to such other limitations and restrictions as the Plan and the
         Committee imposes.

            2.14 "OPTION AGREEMENT" means a written agreement in such form as
         may be, from time to time, hereafter approved by the Committee, which
         shall be duly executed by the Company and the Director and which shall
         set forth the terms and conditions of an Option under the Plan.

            2.15 "PLAN" means the 2002 Non-Employee Director Stock Option Plan
         of FanZ Enterprises, Inc.

            2.16 "QUALIFIED PUBLIC OFFERING" means the sale in an initial public
         offering registered under the Securities Act of 1933, as amended (the
         "Securities Act"), of the Common Stock of the Company consummated
         pursuant to a registration statement declared effective under the
         Securities Act, the gross proceeds of which to the Company are at least
         Ten Million Dollars ($10,000,000).

            2.17 "REGULATION T" means Part 220, chapter II, title 12 of the Code
         of Federal Regulations, issued by the Board of Governors of the Federal
         Reserve System pursuant to the Exchange Act, as amended from time to
         time.

            2.18 "RULE 16b-3" means Rule 16b-3 of the General Rules and
         Regulations of the Securities and Exchange Commission as in effect at
         the time of reference, or any successor rules or regulations which may
         hereafter be adopted in lieu thereof, and any reference to any specific
         provisions of Rule 16b-3 shall refer to the corresponding provisions of
         Rule 16b-3 as it may hereafter be amended or replaced.

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            2.19 "SHARES" means shares of the common stock $.01 par value, of
         the Company or, if by reason of the adjustment provisions contained
         herein, any rights under an Option under the Plan pertain to any other
         security, such other security.

            2.20 "SUBSIDIARY" or "SUBSIDIARIES" means any corporation or
         corporations other than the Company in an unbroken chain of
         corporations beginning with the Company if each of the corporations
         other than the last corporation in the unbroken chain owns stock
         possessing fifty percent (50%) or more of the total combined voting
         power of all classes of stock in one of the other corporations in such
         chain.

            2.21 "SUCCESSOR" means (i) the legal representative of the estate of
         a deceased Director, (ii) the person or persons who shall acquire the
         right to exercise or receive an Option by bequest or inheritance or by
         reason of the death of the Director or (iii) the beneficiary or
         beneficiaries designated by the Director for any Option granted to the
         Director which is outstanding at the time of his death.

            2.22 "TERM" means the period during which a particular Option may be
         exercised.

         3. STOCK SUBJECT TO THE PLAN. There will be reserved for use, upon the
exercise of Options to be granted from time to time under the Plan, an aggregate
number of shares equal to 1% of the issued and outstanding Shares upon
completion of a Qualified Public Offering, which Shares may be, in whole or in
part, as the Board shall from time to time determine, authorized but unissued
Shares, or issued Shares which shall have been reacquired by the Company. Any
Shares subject to issuance upon exercise of Options but which are not issued
because of a surrender, lapse, expiration or termination of any such Option
prior to issuance of the Shares shall once again be available for issuance in
satisfaction of Options.

         4. ADMINISTRATION OF THE PLAN. The Board shall be invested with the
responsibility for the administration of the Plan; provided, however, that the
Board may appoint a Committee provided, further, however, that at such time, if
ever, that the Company becomes subject to the Exchange Act, the Board shall
appoint a Committee, which shall consist of not less than two (2) outside
directors as defined in Treasury Regulation Section 1.162-27 who shall also
qualify as disinterested directors within the meaning of Rule 16b-3, which shall
be invested with the responsibility for the administration of the Plan; provided
further, however, that the failure to appoint a Committee satisfying the
foregoing requirement shall not affect the validity of any Options granted under
the Plan. Subject to the provisions of the Plan, the Committee shall have full
authority, in its discretion, to interpret the Plan, to prescribe, amend and
rescind rules and regulations relating to the Plan, and generally to interpret
and determine any and all matters whatsoever relating to the administration of
the Plan and the granting of Options hereunder. The Board may, from time to
time, appoint members to the Committee in substitution for or in addition to
members previously appointed and may fill vacancies, however caused, in the
Committee. The Committee shall select one of its members as its chairman and
shall hold its meetings at such times and places as it shall deem advisable. A
majority of its members shall constitute a quorum. Any action of the Committee
may be taken by a written instrument signed

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by all of the members, and any action so taken shall be fully as effective as if
it had been taken by a vote of a majority of the members at a meeting duly
called and held. The Committee shall make such rules and regulations for the
conduct of its business as it shall deem advisable and shall appoint a Secretary
who shall keep minutes of its meetings and records of all action taken in
writing without a meeting. No member of the Committee shall be liable, in the
absence of bad faith, for any act or omission with respect to his or her service
on the Committee.

         5. GRANT OF OPTIONS.

            5.1 EXISTING DIRECTORS. Each Director who is a Director on the
         Effective Date shall be granted an Option to purchase 100 Shares
         without further action by the Board or the Committee. On each two year
         anniversary of the Effective Date, each Director who (i) was a Director
         on the Effective Date and (ii) is still a Director on such anniversary
         date shall be granted an Option to purchase 100 Shares without further
         action by the Board or the Committee.

            5.2 FUTURE DIRECTORS. Each Director who joins the Board after the
         Effective Date shall be granted an Option on the first day (the
         "Initial Grant Date") of his initial term on the Board to purchase 100
         Shares without further action by the Board or the Committee. On each
         two year anniversary of the Initial Grant Date of a Director who was
         not a Director on the Effective Date, if such Director is still a
         Director on such anniversary date, then such Director shall be granted
         an Option to purchase 100 Shares without further action of the Board or
         the Committee.

            5.3 LIMITATIONS. If the number of Shares available to grant under
         the Plan on a scheduled date of grant is insufficient to make all
         automatic grants required to be made pursuant to the Plan on such date,
         then each eligible Director shall receive an Option to purchase a pro
         rata number of the remaining Shares available under the Plan; provided
         further, however, that if such proration results in fractional Shares,
         then such Option shall be rounded down to the nearest number of whole
         Shares.

         6. BASIC STOCK OPTION PROVISIONS.

            6.1 OPTION PRICE. The option price per share of any Option granted
         under the Plan shall be the Fair Market Value of the Shares covered by
         the Option on the date the Option is granted.

            6.2 TERMS OF OPTIONS.

                (a) Options granted hereunder shall be exercisable for a Term of
            five (5) years from the date of grant thereof, but shall be subject
            to earlier termination as hereinafter provided.

                (b) Except as otherwise provided in the Plan, prior to its
            expiration or termination, any Option granted hereunder may be
            exercised within the following time limitations:

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                           (i) After one (1) year from the date of grant, it may
                  be exercised as to not more than twenty-five percent (25%) of
                  the Shares originally subject to the Option.

                           (ii) After two (2) years from the date of grant, it
                  may be exercised as to not more than an aggregate of fifty
                  percent (50%) of the Shares originally subject to the Option.

                           (iii) After three (3) years from the date of grant,
                  it may be exercised as to not more than an aggregate of
                  seventy-five percent (75%) of the Shares originally subject to
                  the Option.

                           (iv) After four (4) years from the date of grant, it
                  may be exercised as to any part or all of the Shares
                  originally subject to the Option.

            6.3 TERMINATION OF DIRECTORSHIP. In the event a Director ceases to
         be a member of the Board (other than by reason of death or disability),
         then (a) an Option may be exercised by the Director (to the extent that
         the Director was entitled to do so at the termination of his or her
         directorship) at any time within three (3) months after he ceases to be
         a member of the Board, but not beyond the Term of the Option, (b) the
         portion of the Option that has not vested as of the date the Director
         ceases to be a member of the Board shall automatically terminate as of
         the date he ceases to be a member of the Board and (c) the vested
         portion of the Option shall automatically terminate upon the expiration
         of the three (3) month period described above.

            6.4 DEATH OR DISABILITY OF DIRECTOR. If a Director dies or becomes
         disabled while he is a member of the Board, or within three (3) months
         after the date he ceases to be a member of the Board, then (a) an
         Option may be exercised (to the extent the Director shall have been
         entitled to do so at the time of his death or disability) in full, by
         his Successor, in the event of death, or by him or his personal
         representative, as the case may be, in the event of disability, at any
         time within one (1) year after his or her death or termination of
         directorship by reason of disability, but not beyond the Term of the
         Option, (b) the portion of the Option that has not vested as of the
         date of the Director's death or the termination of his directorship by
         reason of disability shall automatically terminate as of such date and
         (c) the vested portion of the Option shall automatically terminate upon
         the expiration of the one (1) year period described above.

            7. EXERCISE OF RIGHTS UNDER AWARDS.

               7.1 NOTICE OF EXERCISE. A Director entitled to exercise an Option
            may do so by delivery of a written notice to that effect specifying
            the number of Shares with respect to which the Option is being
            exercised and any other information the Committee may require. The
            notice shall be accompanied by payment in full of the purchase price
            of any Shares to be purchased, which payment shall be made in cash
            or by certificates of Shares held for more than six (6) months, duly
            endorsed in blank, equal in value to the purchase price of the
            Shares to be purchased based on their Fair Market Value at the time
            of

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         exercise or a combination thereof. No Shares shall be issued upon
         exercise of an Option until full payment has been made therefor. All
         notices or requests provided for herein shall be delivered to the
         Company's President, or such other person as the Committee may
         designate. No fractional Shares shall be issued.

            7.2 CASHLESS EXERCISE PROCEDURES. The Company, in its sole
         discretion, may establish procedures whereby a Director, subject to the
         requirements of Rule 16b-3, Regulation T, federal income tax laws, and
         other federal, state and local tax and securities laws, can exercise an
         Option or a portion thereof without making a direct payment of the
         option price to the Company. If the Company so elects to establish a
         cashless exercise program, the Company shall determine, in its sole
         discretion, and from time to time, such administrative procedures and
         policies as it deems appropriate and such procedures and policies shall
         be binding on any Director wishing to utilize the cashless exercise
         program.

         8. OTHER OPTION TERMS AND CONDITIONS. Each Option or each Option
Agreement evidencing the grant of an Option shall contain such other terms and
conditions not inconsistent herewith as shall be approved by the Committee.

         9. RIGHTS OF OPTION HOLDER. Subject to the provisions in Sections 14
and 17 of this Plan, the holder of an Option shall not have any of the rights of
a stockholder with respect to the Shares subject to purchase or receipt under
his Option, except to the extent that the holder has exercised the Option for
those Shares in accordance with the terms of the Option Agreement applicable to
such Option and paid the full exercise price for the purchased Shares to the
Company.

         10. NONTRANSFERABILITY OF OPTIONS. Unless otherwise determined by the
Committee and set forth in an Option Agreement, an Option shall not be
transferable, other than: (a) by will or the laws of descent and distribution or
pursuant to any beneficiary designation in effect for said Option at the time of
the holder's death, and an Option may be exercised, during the lifetime of the
holder of the Option, only by the holder, or in the event of death, the holder's
Successor, or in the event of disability, the holder's personal representative,
or (b) pursuant to a qualified domestic relation order, as defined in the Code
or ERISA or the rules thereunder.

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         11. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION. In the event of changes
in all of the outstanding Shares by reason of stock dividends, stock splits,
reclassifications, recapitalizations, mergers, consolidations, combinations,
exchanges of shares, separations, reorganizations or liquidations, or similar
events, or in the event of extraordinary cash or non-cash dividends being
declared with respect to the Shares, or similar transactions or events, the
number and class of Shares available under the Plan in the aggregate, the number
and class of Shares subject to Options theretofore granted, applicable purchase
prices and all other applicable provisions, shall, subject to the provisions of
the Plan, be equitably adjusted by the Committee (which adjustment may, but need
not, include payment to the holder of an Option, in cash or in shares, in an
amount equal to the difference between the price at which such Option may be
exercised and the then current fair market value of the Shares subject to such
Option) as equitably determined by the Committee in order to prevent the
diminution or enlargement of benefits thereunder. The foregoing adjustment and
the manner of application of the foregoing provisions shall be determined by the
Committee, in its sole discretion. Any such adjustment may provide for the
elimination of any fractional share which might otherwise become subject to an
Option.

         12. CHANGE IN CONTROL. Notwithstanding anything to the contrary herein
or in any Option Agreement, in the case of a Change in Control of the Company,
each Option granted under the Plan shall terminate upon the later of (i) the
thirtieth (30th) day after the date the Option holder receives written notice
from the Company of such Change in Control or (ii) the consummation of such
Change in Control, and an Option holder shall have the right, conditioned upon
the consummation of such Change in Control and subject to any other limitation
on exercise of an Option in effect on the date of exercise, to exercise any
Option in full, without regard to any vesting limitations, to the extent it
shall not have been previously exercised.

         13. FORMS OF OPTIONS. An Option shall be granted hereunder on the date
or dates specified in the Plan. Whenever the Plan provides for the receipt of an
Option by a Director, the Company's President or such other person as the
Committee shall appoint, shall forthwith send notice thereof to the Director, in
such form as the Committee shall approve, stating the number of Shares subject
to the Option, its Term, and the other terms and conditions thereof. The notice
shall be accompanied by a written Option Agreement, in such form as may from
time to time hereafter be approved by the Committee, which shall have been duly
executed by or on behalf of the Company. Execution by the Director to whom such
Option is granted of said Option Agreement in accordance with the provisions set
forth in this Plan shall be a condition precedent to the exercise of any Option.

         14. TAXES.

             14.1 RIGHT TO WITHHOLD REQUIRED TAXES. The Company shall have the
         right to require a person entitled to receive Shares pursuant to the
         exercise of an Option under the Plan to pay the Company the amount of
         any taxes which the Company is or will be required to withhold, if any,
         with respect to such Shares before the certificate for such Shares is
         delivered pursuant to the Option. Furthermore, the Company may elect to
         deduct such taxes from any other amounts then payable in cash or in
         shares or from any other amounts payable any time thereafter to the
         Director.

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             14.2 DIRECTOR ELECTION TO WITHHOLD SHARES. A Director may satisfy
         the withholding tax liability, if any, with respect to the exercise of
         an Option, by having the Company withhold Shares otherwise issuable
         upon exercise of the Option if such Director makes an election to do so
         which satisfies the requirements of Rule 16b-3.

         15. TERMINATION OF THE PLAN. The Plan shall terminate ten (10) years
from the date the Plan becomes effective, and an Option shall not be granted
under the Plan after that date although the terms of any Option may be amended
at any date prior to the end of its Term in accordance with the Plan. Any Option
outstanding at the time of termination of the Plan shall continue in full force
and effect according to the terms and conditions of the Option and this Plan.

         16. AMENDMENT OF THE PLAN. The Plan may be amended at any time and from
time to time by the Board, but no amendment without the approval of the
stockholders of the Company shall be made if stockholder approval under Rule
16b-3 would be required. Notwithstanding the discretionary authority granted to
the Committee in Section 4 of the Plan, no amendment of the Plan or any Option
granted under the Plan shall impair any of the rights of any holder, without the
holder's consent, under any Option theretofore granted under the Plan.

         17. DELIVERY OF SHARES ON EXERCISE. Delivery of certificates for Shares
pursuant to an Option exercise may be postponed by the Company for such period
as may be required for it with reasonable diligence to comply with any
applicable requirements of any federal, state or local law or regulation or any
administrative or quasi-administrative requirement applicable to the sale,
issuance, distribution or delivery of such Shares. The Committee may, in its
sole discretion, require a Director to furnish the Company with appropriate
representations and a written investment letter prior to the exercise of an
Option or the delivery of any Shares pursuant thereto.

         18. FEES AND COSTS. The Company shall pay all original issue taxes on
the exercise of any Option granted under the Plan and all other fees and
expenses necessarily incurred by the Company in connection therewith.

         19. EFFECTIVENESS OF THE PLAN. The Plan shall become effective on the
Effective Date.

         20. OTHER PROVISIONS. As used in the Plan, and in Option Agreements and
other documents prepared in implementation of the Plan, references to the
masculine pronoun shall be deemed to refer to the feminine or neuter, and
references in the singular or the plural shall refer to the plural or the
singular, as the identity of the person or persons or entity or entities being
referred to may require. The captions used in the Plan and in such Option
Agreements and other documents prepared in implementation of the Plan are for
convenience only and shall not affect the meaning of any provision hereof or
thereof.

         21. DELAWARE LAW TO GOVERN. This Plan shall be governed by and
construed in accordance with the laws of the State of Delaware.

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                                                                    Exhibit 4(c)
                                   LIBBEY INC.
                        2002 EMPLOYEE STOCK PURCHASE PLAN

                 (Conformed through the First Amendment Thereto)

                                   ARTICLE I.
                  PURPOSE, SCOPE AND ADMINISTRATION OF THE PLAN

1.1      PURPOSE AND SCOPE

         The purpose of the Libbey Inc. 2002 Employee Stock Purchase Plan is to
assist employees of Libbey Inc. and its Designated Subsidiaries in acquiring a
stock ownership interest in the Company pursuant to a plan which is intended to
qualify as an "employee stock purchase plan" under Section 423 of the Internal
Revenue Code of 1986, as amended.

1.2      ADMINISTRATION OF PLAN

         The Plan shall be administered by the Committee. The Committee shall
have the power to make, amend and repeal rules and regulations for the
interpretation and administration of the Plan consistent with the qualification
of the Plan under Section 423 of the Code, and the Committee also is authorized
to change the Option Periods, Offering Dates and Exercise Dates under the Plan
by providing written notice to all Employees prior to the date following which
such changes will take effect. The Committee may delegate administrative tasks
under the Plan to one or more Employees. The Committee's interpretation and
decisions in respect to the Plan shall be final and conclusive.

                                   ARTICLE II.
                                   DEFINITIONS

         Whenever the following terms are used in this Plan, they shall have the
meaning specified below unless the context clearly indicates to the contrary.
The singular pronoun shall include the plural where the context so indicates.

2.1      "BOARD" shall mean the Board of Directors of the Company.

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

2.3      "COMMITTEE" shall mean the Compensation Committee of the Board, which
         Committee shall administer the Plan as provided in Section 1.2 above.

2.4      "COMMON STOCK" shall mean shares of common stock of the Company.

2.5      "COMPANY" shall mean Libbey Inc.

2.6      "COMPENSATION" shall mean the base wages, overtime, shift
         differentials, vacation pay, salaried production schedule premiums,
         holiday pay, jury duty pay, funeral leave pay, military pay, prior week
         adjustments and weekly bonus pay paid to an Employee by the Company or
         a Designated Subsidiary in accordance with established payroll
         procedures.

2.7      "DESIGNATED SUBSIDIARY" means the Subsidiaries that have been
         designated by the Committee from time to time in its sole discretion as
         eligible to participate in the Plan.

2.8      "ELIGIBLE EMPLOYEE" shall mean an Employee who (a) is customarily
         scheduled to work at least 20 hours per week, (b) whose customary
         employment is more than five (5) months in a calendar year, (c) who has
         been employed since December 31 of the year

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         preceding the Offering Date, and (d) with respect to any Option Period,
         who is not a member of a collective bargaining unit that has refused to
         participate in the Plan with respect to such Option Period.

2.9      "EMPLOYEE" shall mean any employee of the Company or a Designated
         Subsidiary.

2.10     "EXERCISE DATE" shall mean each May 31.

2.11     "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
         amended.

2.12     "FAIR MARKET VALUE" of a share of Common Stock as of a given date shall
         mean (i) the closing price of the sale of Common Stock on the New York
         Stock Exchange (NYSE) as of 4:00 P.M., New York time on such date or,
         if not traded on such date, on the immediately preceding trading date,
         or (ii) if Common Stock is not quoted on NYSE, the fair market value of
         a share of Common Stock as established by the Committee acting in good
         faith.

2.13     "OFFERING DATE" shall mean each June 1, with the first Offering Date
         under the Plan being June 1, 2002.

2.14     "OPTION PERIOD" shall mean the period beginning on an Offering Date and
         ending on the next succeeding Exercise Date.

2.15     "OPTION PRICE" shall mean the purchase price of a share of Common Stock
         hereunder as provided in Section 4.1 below.

2.16     "PARTICIPANT" shall mean any Eligible Employee who elects to
         participate.

2.17     "PLAN" shall mean this Libbey Inc. 2002 Employee Stock Purchase Plan,
         as it may be amended from time to time.

2.18     "PLAN ACCOUNT" shall mean a bookkeeping account established in the name
         of each Participant.

2.19     "SUBSIDIARY" shall mean any corporation of which the Company directly
         or indirectly owns stock possessing 50% or more of the total combined
         voting power of all classes of stock in the corporation.

                                  ARTICLE III.
                                  PARTICIPATION

3.1      ELIGIBILITY

          An Eligible Employee may participate in the Plan if immediately after
the applicable Offering Date, that Employee would not be deemed for purposes of
Section 423(b)(3) of the Code to possess 5% or more of the total combined voting
power or value of all classes of stock of the Company or any Subsidiary.

3.2      ELECTION TO PARTICIPATE; PAYROLL DEDUCTIONS

(a) An Eligible Employee may participate in the Plan only by means of payroll
deduction. An Eligible Employee may elect to participate in the Plan during an
Option Period by delivering to the Company by such time designated by the
Committee preceding the Offering Date on which such Option Period commences a
payroll deduction authorization in such manner as prescribed by the Committee.

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         (b) Payroll deductions (i) shall be equal to at least 2%, but not more
than 20%, of the Participant's Compensation subject to the provisions of
Sections 4.2 and 4.3 below. Amounts deducted from a Participant's Compensation
pursuant to this Section 3.2 shall be credited to the Participant's Plan
Account. A Participant may elect to reduce his or her payroll deduction
percentage once during an Option Period by delivering a written payroll
deduction authorization at a time and on a form prescribed by the Committee,
subject to the minimum levels above.

         (c) A Participant's election to participate in the Plan with respect to
an Option Period shall enroll such Participant in the Plan for each successive
Option Period at the same payroll deduction percentage as in effect at the
termination of the prior Option Period unless such Participant delivers to the
Company a different election with respect to the successive Option Period by
such time and in such manner as is designated by the Committee for enrollment in
the Plan for such successive Option Period or unless such Participant becomes
ineligible for participation in the Plan.

3.3      LEAVE OF ABSENCE

         During approved leaves of absence meeting the requirements of
Regulation Section 1.421-7(h)(2) under the Code, a Participant may continue
participation in the Plan subject to Section 3.2 (a).

                                   ARTICLE IV.
                               PURCHASE OF SHARES

4.1      OPTION PRICE

         The Option Price per share of the Common Stock sold to Participants
hereunder shall be 85% of the Fair Market Value of such share on either the
Offering Date or the Exercise Date of the Option Period, whichever is lower, but
in no event shall the Option Price per share be less than the par value per
share ($0.01) of the Common Stock.

4.2      PURCHASE OF SHARES

         (a) On each Exercise Date on which he or she is employed, each
Participant will automatically and without any action on his or her part be
deemed to have exercised his or her option to purchase at the Option Price the
largest number of shares of Common Stock (including fractional shares) which can
be purchased with the amount in the Participant's Plan Account and pursuant to
the terms of the Plan. The balance, if any, remaining in the Participant's Plan
Account (after exercise of his or her option) as of an Exercise Date shall be
carried forward to the next Option Period if the Participant has elected to
participate in the next Option Period, otherwise the balance will be paid to the
Participant in cash as soon as practicable after the Exercise Date.

         (b) As soon as practicable following each Exercise Date, the number of
shares purchased by such Participant pursuant to subsection (a) above will be
delivered to the Plan to be held in its account at a stock brokerage or other
financial services firm designated by the Company to be held on behalf of the
Participant. In the event the Company is required to obtain from any commission
or agency authority to issue any such shares of Common Stock, the Company will
seek to obtain such authority. Inability of the Company to obtain from any such
commission or agency authority which counsel for the Company deems necessary for
the lawful issuance of any such shares shall relieve the Company from liability
to any Participant except to refund to him or her the amount withheld.

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<PAGE>

4.3      LIMITATIONS ON PURCHASE

         No Employee shall be granted an option under the Plan which permits his
or her rights to purchase Common Stock under the Plan or any other employee
stock purchase plan of the Company or any of its Subsidiaries to accrue at a
rate which exceeds $25,000 (as measured by the Fair Market Value of such Common
Stock at the time the option is granted) for each calendar year such option is
outstanding. For purposes of this Section 4.3, the right to purchase Common
Stock under an option accrues when the option (or any portion thereof) becomes
exercisable, and the right to purchase Common Stock which has accrued under one
option under the Plan may not be carried over to any other option.

4.4      TRANSFERABILITY OF RIGHTS

         An option granted under the Plan shall not be transferable and is
exercisable only by the Participant. No option or interest or right to the
option shall be available to pay off any debts, contracts or engagements of the
Participant or his or her successors in interest or shall be subject to
disposition by pledge, encumbrance, assignment or any other means whether such
disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings
(including bankruptcy), and any attempt at disposition of the option shall have
no effect.

                                   ARTICLE V.
                       PROVISIONS RELATING TO COMMON STOCK

5.1      COMMON STOCK RESERVED

         Subject to adjustment as provided in Section 5.2, the maximum number of
shares of Common Stock that shall be made available for sale under this Plan
shall be 350,000, plus an annual increase on the first day of each of the
Company's fiscal years beginning in 2003 and ending in 2012, equal to the lesser
of (a) 100,000 shares, (b) 1.0% of the shares outstanding on the last day of the
immediately preceding fiscal year, or (c) such lesser number of shares as is
determined by the Board. Shares of Common Stock made available for sale under
this Plan may be authorized but unissued or reacquired shares reserved for
issuance under this Plan.

5.2      ADJUSTMENT FOR CHANGES IN COMMON STOCK

         In the event that adjustments are made in the number of outstanding
shares of Common Stock or the shares are exchanged for a different class of
stock of the Company by reason of stock dividend, stock split or other
subdivision, the Committee shall make appropriate adjustments in (a) the number
and class of shares or other securities that may be reserved for purchase
hereunder and (b) the Option Price of outstanding options.

5.3      MERGER, ACQUISITION OR LIQUIDATION

         In the event of the merger or consolidation of the Company into another
corporation, the acquisition by another corporation of all or substantially all
of the Company's assets or 80% or more of the Company's then outstanding voting
stock or the liquidation or dissolution of the Company, the date of exercise
with respect to outstanding options shall be the business day immediately
preceding the effective date of such merger, consolidation, acquisition,
liquidation or dissolution unless the Committee shall, in its sole discretion,
provide for the assumption or substitution of such options in a manner complying
with Section 424(a) of the Code. In the event any Designated Subsidiary ceases
to be a Subsidiary of the Company by reason of sale, liquidation, merger or
consolidation into another corporation, other than sale or merger with or into
the Company or another Subsidiary, then the participation of each Eligible
Employee of the Designated Subsidiary in the Plan shall terminate on the date
immediately preceding the effective

                                       4
<PAGE>

date of such merger or consolidation, sale or liquidation and the amount in such
Participant's Plan Account will be refunded to the Participant or his or her
designated beneficiary or estate as soon as practicable.

5.4      INSUFFICIENT SHARES

         If the aggregate funds available for the purchase of Common Stock on
any Exercise Date would cause an issuance of shares in excess of the number
provided for in Section 5.1 above, (a) the Committee shall proportionately
reduce the number of shares that would otherwise be purchased by each
Participant in order to eliminate such excess, and (b) the Plan shall
automatically terminate immediately after such Exercise Date.

5.5      RIGHTS AS STOCKHOLDERS

         With respect to shares of Common Stock subject to an option, a
Participant shall not be deemed to be a stockholder and shall not have any of
the rights or privileges of a stockholder. Participant shall have the rights and
privileges of a stockholder when, but not until, the option is deemed exercised
and the shares of Common Stock have been issued to the Plan on behalf of the
Participant.

5.6      TRANSFERS OF STOCK

         All shares of Common Stock acquired upon exercise of an option under
this Plan shall be held by the Plan in an account established by the Company at
a stock brokerage or other financial institution on behalf of each Participant
in the Plan. Subject to providing any notice required by Section 7.7, a
Participant may at anytime sell shares held under the Plan on his or her behalf.
Except as provided in Section 6.2, no shares of Common Stock may be transferred
from the Plan to another stock brokerage or other financial institution by a
Participant for a period of twelve (12) months following the purchase of such
shares.

                                   ARTICLE VI.
                          TERMINATION OF PARTICIPATION

6.1      CESSATION OF CONTRIBUTIONS; VOLUNTARY WITHDRAWAL

(a) A Participant may cease payroll deductions during an Option Period by
delivering written notice of such cessation to the Company. Upon any such
cessation and subject to any minimums established by the Committee, the
Participant may elect either to withdraw from the Plan pursuant to subsection
(b) below or to have amounts credited to his or her Plan Account held in the
Plan for the purchase of Common Stock pursuant to Section 4.2. A Participant who
ceases contributions to the Plan during any Option Period shall not be permitted
to resume contributions to the Plan during that Option Period.

(b) A Participant may withdraw from the Plan at any time by written notice to
the Secretary of the Company prior to the close of business on an Exercise Date
or such earlier date as may be established by the Committee in its sole
discretion. As soon as practicable after the notice of withdrawal is delivered,
the Company shall refund the entire amount, if any, in a Participant's Plan
Account to him or her, at which time the Participant's payroll deduction
authorization, his or her interest in the Plan, and his or her option under the
Plan shall terminate. Any Eligible Employee who withdraws from the Plan may
again become a Participant in accordance with Section 3.2 above as of the next
Offering Date.

                                       5
<PAGE>

6.2      TERMINATION OF ELIGIBILITY

         If a Participant ceases to be eligible under Section 3.1 above for any
reason, including death, retirement or other terminations, the amount in such
Participant's Plan Account will be refunded to the Participant or his or her
designated beneficiary or estate as soon as practicable after his or her
termination of employment or other cessation of eligibility. Upon payment by the
Company to the Participant or his or her beneficiary or estate of the remaining
balance, if any, in Participant's Plan Account, the Participant's interest in
the Plan and the Participant's option under the Plan shall terminate. Within 90
days after a Participant ceases to be eligible under Section 3.1, then any
shares of Common Stock held by the Plan on behalf of the Participant will either
be distributed to the Participant or transferred to another brokerage account
established by the Participant for the receipt of such shares; provided that the
Participant must provide the Company with such information as it deems necessary
in order to make such transfer.

                                  ARTICLE VII.
                               GENERAL PROVISIONS

7.1      CONDITION OF EMPLOYMENT

        Neither the creation of the Plan nor an Employee's participation therein
shall be deemed to create a contract of employment, any right of continued
employment or in any way affect the right of the Company or a Subsidiary to
terminate an Employee at any time with or without cause.

7.2      AMENDMENT OF THE PLAN

         The Board may amend, suspend or terminate the Plan at any time and from
time to time; provided, however, that without approval of the Company's
stockholders given within 12 months before or after action by the Board, the
Plan may not be amended to increase the maximum number of shares subject to the
Plan or change the designation or class of Eligible Employees. Upon termination
of the Plan, the balance in each Participant's Plan Account shall be refunded as
soon as practicable after such termination.

7.3      USE OF FUNDS; NO INTEREST PAID

         All funds received by the Company by reason of purchase of Common Stock
under this Plan will be included in the general funds of the Company free of any
trust or other restriction and may be used for any corporate purpose. No
interest will be paid to any Participant or credited under the Plan.

7.4      TERM; APPROVAL BY STOCKHOLDERS

         The Plan shall terminate on May 31, 2012, unless earlier terminated by
action of the Board. No option may be granted during any period of suspension of
the Plan nor after termination of the Plan. The Plan will be submitted for the
approval of the Company's stockholders within 12 months after the date of the
Board's initial adoption of the Plan. Options may be granted prior to such
stockholder approval; provided, however, that such options shall not be
exercisable prior to the time when the Plan is approved by the stockholders;
provided further that if such approval has not been obtained by the end of said
12-month period, all options previously granted under the Plan shall thereupon
be canceled and become null and void.

7.5      EFFECT UPON OTHER PLANS

         The adoption of the Plan shall not affect any other compensation or
incentive plans in effect for the Company or any Subsidiary. Nothing in this
Plan shall be construed to limit the right of the Company or any Subsidiary (a)
to establish any other forms of incentives or compensation

                                       6
<PAGE>

for employees of the Company or any Subsidiary or (b) to grant or assume options
otherwise than under this Plan in connection with any proper corporate purpose,
including, but not by way of limitation, the grant or assumption of options in
connection with the acquisition, by purchase, lease, merger, consolidation or
otherwise, of the business, stock or assets of any corporation, firm or
association.

7.6      CONFORMITY TO SECURITIES LAWS

         Notwithstanding any other provision of this Plan, this Plan and the
participation in this Plan by any individual who is then subject to Section 16
of the Exchange Act shall be subject to any additional limitations set forth in
any applicable exemptive rule under Section 16 of the Exchange Act (including
any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the
application of such exemptive rule. To the extent permitted by applicable law,
the Plan shall be deemed amended to the extent necessary to conform to such
applicable exemptive rule.

7.7      NOTICE OF DISPOSITION OF SHARES

         The Company may require any Participant to give the Company prompt
notice of any disposition of shares of Common Stock, acquired pursuant to the
Plan, within two years after the applicable Offering Date or within one year
after the applicable Exercise Date with respect to such shares. The Company may
direct that the certificates evidencing shares acquired pursuant to the Plan
refer to such requirement.

7.8      TAX WITHHOLDING

         The Company shall be entitled to require payment in cash or deduction
from any compensation payable to each Participant of any sums required by
federal, state or local tax law to be withheld with respect to any purchase of
shares of Common Stock under the Plan or any sale of such shares.

7.9      GOVERNING LAW

         The Plan and all rights and obligations thereunder shall be construed
and enforced in accordance with the laws of the State of Delaware.

                                       7

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