Document:

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                                                                   EXHIBIT 10(c)

                                FERRO CORPORATION
                        SAVINGS AND STOCK OWNERSHIP PLAN
                           (JULY 1, 1999 RESTATEMENT)
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                                FERRO CORPORATION
                        SAVINGS AND STOCK OWNERSHIP PLAN
                           (JULY 1, 1999 RESTATEMENT)

                                TABLE OF CONTENTS

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                                                     ARTICLE I
                                                    DEFINITIONS

Section No.                                                                                                    Page No.
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   1.1        Definitions.................................................................................          2
   1.2        Construction................................................................................         10

                                                       ARTICLE II
                                            PARTICIPATION AND VESTING SERVICE

   2.1        Participation...............................................................................         11
   2.2        Notice of Eligibility to Covered Employees..................................................         11
   2.3        Election to Participate.....................................................................         11
   2.4        Service for Eligibility Purposes............................................................         11
   2.5        Changes in Employment Status................................................................         12
   2.6        Credit Upon Acquisition.....................................................................         12
   2.7        Reemployment................................................................................         12

                                                       ARTICLE III
                                                      CONTRIBUTIONS

   3.1        Pre-Tax Contributions.......................................................................         13
   3.2        Catch-up Pre-Tax Contributions..............................................................         13
   3.3        After-Tax Contributions.....................................................................         13
   3.4        Matching Contributions......................................................................         14
   3.5        Rollover Contributions......................................................................         15

                                                       ARTICLE IV
                                               INVESTMENT OF CONTRIBUTIONS

   4.1        Establishment and Maintenance of Funds......................................................         16
   4.2        Investment of Pre-Tax Contributions, Catch-up Pre-Tax Contributions
                After-Tax Contributions and Rollover Contributions........................................         16
   4.3        Investment of Matching Contributions........................................................         16
   4.4        Investment Elections for Previously Allocated Amounts.......................................         16
   4.5        Voting of Company Stock.....................................................................         16
   4.6        Investment Responsibility...................................................................         18

                                                        ARTICLE V
                                           ALLOCATIONS TO INDIVIDUAL ACCOUNTS

   5.1        Individual Accounts.........................................................................         19
   5.2        Allocation of Matching Contributions........................................................         19
   5.3        Valuation and Adjustments...................................................................         19
   5.4        Trustee and Committee Judgment Controls.....................................................         19
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                                                     ARTICLE VI
                                              VESTING AND DISTRIBUTIONS

   6.1        Vesting Upon Retirement or Disability.......................................................         20
   6.2        Vesting Upon Death..........................................................................         20
   6.3        Vesting Upon Termination of Employment......................................................         20
   6.4        Forfeitures.................................................................................         20
   6.5        Methods of Payment of Distributable Benefits................................................         21
   6.6        Timing of Payments of Distributable Benefits................................................         21
   6.7        Management and Investment of Individual Accounts
                After Termination of Employment...........................................................         22
   6.8        Benefits to Minors and Incompetents.........................................................         22
   6.9        Eligible Rollover Distributions.............................................................         23
  6.10        Election of Former Schedule.................................................................         23

                                                       ARTICLE VII
                                                      BENEFICIARIES

   7.1        Designation of Beneficiary..................................................................         24
   7.2        Beneficiary in the Absence of Designated Beneficiary........................................         24
   7.3        Spousal Consent to Beneficiary Designation..................................................         24

                                                      ARTICLE VIII
                                                  WITHDRAWALS AND LOANS

   8.1        Withdrawals Generally.......................................................................         25
   8.2        Withdrawal of After-Tax Contributions, Rollover Contributions,
                Pre-Tax Contributions Catch-Up Pre-Tax Contributions and
                Matching Contributions....................................................................         25
   8.3        Special Hardship Withdrawals................................................................         25
   8.4        Participant Loans...........................................................................         26

                                                       ARTICLE IX
                                                         FUNDING

   9.1        Contributions...............................................................................         28
   9.2        Trustee.....................................................................................         28

                                                        ARTICLE X
                                                       FIDUCIARIES

  10.1        Company.....................................................................................         29
  10.2        Trustee.....................................................................................         29
  10.3        Savings and Stock Ownership Plan Committee..................................................         29
  10.4        Claims Procedures...........................................................................         29

                                                       ARTICLE XI
                                                          ESOP

  11.1        Purpose.....................................................................................         31
  11.2        Suspense Fund...............................................................................         31
  11.3        Exempt Loans................................................................................         31
  11.4        Limitation on Allocations of Matching Employer Contributions................................         31
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Section No.                                                                                                    Page No.
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  11.5        Allocations of Company Stock................................................................         32
  11.6        ESOP Diversification Rights.................................................................         33
  11.7        Reinvestment of Dividends on Company Stock..................................................         33
  11.8        Restrictions on Company Stock...............................................................         33

                                                       ARTICLE XII
                                          AMENDMENT AND TERMINATION OF THE PLAN

  12.1        Amendment of the Plan.......................................................................         34
  12.2        Termination of the Plan.....................................................................         34
  12.3        Return of Contributions.....................................................................         34

                                                      ARTICLE XIII
                                    PROVISIONS RELATIVE TO EMPLOYERS INCLUDED IN PLAN

  13.1        Method of Participation.....................................................................         35
  13.2        Withdrawal..................................................................................         35

                                                       ARTICLE XIV
                                                      MISCELLANEOUS

  14.1        Governing Law...............................................................................         36
  14.2        Administration Expenses.....................................................................         36
  14.3        Participant's Rights........................................................................         36
  14.4        Spendthrift Clause..........................................................................         36
  14.5        Merger, Consolidation or Transfer...........................................................         37
  14.6        Qualified Domestic Relations Order..........................................................         37
  14.7        Addenda.....................................................................................         38
  14.8        Provisions with Respect to Uniformed Services Employment and
                Reemployment Rights Act of 1994...........................................................         38
  14.9        Return of Contributions to Employer.........................................................         38
  14.10       Counterparts................................................................................         38

APPENDIX A    ............................................................................................        A-1
APPENDIX B    ............................................................................................        B-1
APPENDIX C    ............................................................................................        C-1
APPENDIX D    ............................................................................................        D-1

ADDENDUM I    Former Advanced Polymer Employees...........................................................      ADI-1
ADDENDUM II   TAM Ceramics, Inc. Employees Formerly Covered Under the
                Cookson America, Inc. Salaried Employees' Savings Plan....................................     ADII-1
ADDENDUM III  Ferro Glass & Color Employees Formerly Covered Under the
                DMC2 Degussa Catalysts Cerdec Corporation Savings
                & Investment Plan.........................................................................    ADIII-1
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                                    - (iii) -
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                                FERRO CORPORATION
                        SAVINGS AND STOCK OWNERSHIP PLAN
                           (JULY 1, 1999 RESTATEMENT)

                                    PREAMBLE

            WHEREAS, Ferro Corporation (hereinafter referred to as the
"Company") established the Ferro Corporation Investment Savings Plan
(hereinafter referred to as the "ISP"), effective January 1, 1984, to assist
certain of its employees in saving for their retirement; and

            WHEREAS, the ISP was amended and restated subsequently from time to
time; and

            WHEREAS, the Company amended and restated the ISP as of January 1,
1989, to comply with the provisions of the Tax Reform Act of 1986 as well as
other tax legislation and incorporated the ISP as of April 24, 1989, in a single
plan document with the Ferro Employee Stock Ownership Plan (hereinafter referred
to as the "Ferro ESOP"), a separate employee stock ownership plan, together to
be known as the Ferro Corporation Savings and Stock Ownership Plan; and

            WHEREAS, the Ferro ESOP was merged into the ISP as of the close of
business on December 31, 1993, and thereafter such plans became a single plan
known as the Ferro Corporation Savings and Stock Ownership Plan (hereinafter
referred to as the "SSOP" or the "Plan"); and

            WHEREAS, the Company now desires to amend the SSOP to reflect
various operational and administrative changes as well as certain legislated tax
changes;

            NOW, THEREFORE, effective as of July 1, 1999, except as specifically
provided otherwise, the SSOP is hereby amended and restated as hereinafter set
forth with respect to employees employed by the Company and its affiliates on
and after said date.
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                                    ARTICLE I

                                   DEFINITIONS

      1.1   DEFINITIONS.

            The following words and phrases as used herein shall have the
meanings hereinafter set forth, unless a different meaning is plainly required
by the context.

            (1) The term "ADJUSTMENT" shall mean the net increases and decreases
      in the market value of the Fund during a Plan Year or other period
      exclusive of any contribution during such year or other period. Such
      increases and decreases shall include such items as realized or unrealized
      investment gains and losses and investment income and may include expenses
      of administering the Fund and the Plan.

            (2) The term "AFFILIATE" shall mean any corporation which is a
      Participant of a controlled group of corporations of which the Company is
      a member as determined under Section 414(b) of the Code, each trade or
      business (whether or not incorporated) with which the Company is under
      common control (as determined under Section 414(c) of the Code, each
      organization that is a member of an affiliated service group (within the
      meaning of Section 414(m) of the Code) of which the Company is a member,
      and any other entity which is required to be aggregated with the Company
      pursuant to the provisions of Section 414(o) of the Code.

            (3) The term "AFFILIATED GROUP" shall mean the group of entities
      which are Affiliates.

            (4) The term "AFTER-TAX CONTRIBUTION ACCOUNT" shall mean the portion
      of the Individual Account of a Participant that reflects his interest in
      the Investment Funds attributable to After-Tax Contributions and that is
      established pursuant to the provisions of Sections 3.3 and 5.1.

            (5) The term "AFTER-TAX CONTRIBUTIONS" shall mean contributions made
      under the Plan by a Participant pursuant to the provisions of Section 3.3.

            (6) The term "BENEFICIARY" shall mean any person designated by a
      Participant to receive such benefits as may become payable pursuant to the
      provisions of Article VII after the death of such Participant.

            (7) The term "BENEFIT COMMENCEMENT DATE" shall mean the day on which
      benefits are distributed, or commence to be distributed, to any
      Participant or Beneficiary under the terms of the Plan.

            (8) The term "BOARD" shall mean the Board of Directors of the
      Company.

            (9) The term "CATCH-UP PRE-TAX CONTRIBUTION ACCOUNT" shall mean the
      portion of the Individual Account of a Participant that reflects his
      interest in the Investment Funds attributable to Catch-up Pre-

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      Tax Contributions and that is established pursuant to the provisions of
      Sections 3.2 and 5.1.

            (10) The term "CATCH-UP CONTRIBUTIONS" shall mean the Pre-Tax
      Contributions permitted to be made under the Plan after December 31, 2001
      in accordance with the provisions of Sections 3.2 and 5.1.

            (11) The term "CODE" shall mean the Internal Revenue Code of 1986,
      as amended from time to time. Reference to a section of the Code shall
      include such section and any comparable section or sections of any future
      legislation that amends, supplements, or supersedes such section.

            (12) The term "COMMITTEE" shall mean the Savings and Stock Ownership
      Plan Committee as described in Section 10.3.

            (13) The term "COMPANY" shall mean Ferro Corporation, an Ohio
      corporation, or any successor thereto.

            (14) The term "COMPANY STOCK" shall mean shares of common stock
      and/or preferred stock convertible into common stock of the Company.

            (15) The term "COMPANY STOCK FUND" shall mean the Investment Fund
      that is primarily invested in Company Stock and that forms the Ferro ESOP.

            (16) The term "COMPENSATION" shall mean, effective as of January 1,
      1997, the compensation within the meaning of Section 415(c)(3) of the
      Code, subject to the provisions of Section 414(q)(6) of the Code, paid
      during a Plan Year by the Employer to a Participant while a Participant,
      including all wages and salary, commissions and bonuses, overtime pay,
      used or accrued vacation pay, and any Pre-Tax Contributions contributed
      under the Plan with respect to such Participant during such Plan Year, and
      any elective employer contributions made on behalf of a Participant that
      are not includible in gross income under Section 125, Section 132(f)(4)
      (for Plan Years beginning on and after January 1, 1997), Section
      402(e)(3), Section 402(h)(1)(B), and Section 403(b) of the Code, but
      excluding relocation expense reimbursements (including mortgage interest
      differentials) or other expense allowances or fringe benefits which are
      paid with respect to a period following termination of employment,
      automobile allowance income, foreign service premiums, deferred
      compensation (other than Pre-Tax Contributions), and allowances or any
      other extraordinary income and welfare benefits. Notwithstanding the
      foregoing, in no event shall Compensation exceed the amount permitted
      under Section 401(a)(17)(A) of the Code as adjusted for increases in the
      cost of living in accordance with the provisions of Section 401(a)(17)(B)
      of the Code. The cost of living in effect for a calendar year applies to
      any period, not exceeding 12 months, over which Compensation is determined
      (a "determination period") beginning in such calendar year. If a
      determination period consists of fewer than 12 months, the annual
      compensation limit will be multiplied by a fraction, the numerator of
      which is the number of months in the determination period and the
      denominator of which is 12.

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            (17) The term "CONTRIBUTION DATE" shall mean prior to January 1,
      2001, the last full day of each calendar year quarter on which the Trustee
      and the Company are open for business and on and after January 1, 2001,
      each payroll date.

            (18) The term "CURRENT BALANCE" as used with respect to a
      Participant's or former Participant's Individual Account or stipulated
      portion thereof, shall mean the account balance as of a Valuation Date.

            (19) The term "DISABILITY" shall mean any medically demonstrable
      physical or mental condition incurred through unavoidable cause which has
      incapacitated a Participant to the extent that he is eligible to receive
      disability benefits either under a long term disability plan maintained by
      the Company or under the Social Security Act or to the extent a physician
      satisfactory to the Company finds that he is unable to continue to perform
      his occupation.

            (20) The term "ELIGIBLE RETIREMENT PLAN" shall mean:

                  (a)   any individual retirement account described in Section
                        408(a) of the Code;

                  (b)   any individual retirement annuity described in Section
                        408(b) of the Code;

                  (c)   any trust maintained pursuant to a plan described in
                        Section 414(i) of the Code that meets the requirements
                        of Section 401(a) of the Code;

                  (d)   any annuity plan described in Section 403(a) of the
                        Code;

                  (e)   effective for distributions after December 31, 2001, an
                        eligible deferred compensation plan described in Section
                        457(b) of the Code that separately accounts for amounts
                        rolled into such plan from eligible retirement plans not
                        described in such Section 457(b); and

                  (f)   effective for distributions after December 31, 2001, an
                        annuity contract described in Section 403(b) of the
                        Code.

      In the case of an Eligible Rollover Distribution prior to January 1, 2002,
      to a beneficiary who is the surviving spouse of a Participant, an Eligible
      Retirement Plan shall mean only an individual retirement account or
      individual retirement annuity described in (a) or (b) above.

            (21) The term "ELIGIBLE ROLLOVER DISTRIBUTION" shall mean all or any
      portion of a Plan distribution to a Participant, a beneficiary who is a
      deceased Participant's surviving spouse, or an alternate payee under a
      qualified domestic relations order who is a Participant's spouse or former
      spouse; provided, however, that such distribution is not (i) one of a
      series of substantially equal periodic payments made at least annually for
      over a

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      specified period of ten or more years or the life of the Participant or
      beneficiary or the joint lives of the Participant and the beneficiary;
      (ii) a distribution to the extent such distribution is required under
      Section 401(a)(9) of the Code; (iii) the portion of any distribution which
      is not includable in gross income (determined without regard to any
      exclusion of net unrealized appreciation with respect to employer
      securities); (iv) a distribution from the Pre-Tax Contribution Account of
      a Participant that made on or after January 1, 1999, on account of
      hardship or (v) any distribution that is made on or after January 1, 2002
      on account of hardship. A portion of a distribution that is received on or
      after January 1, 2002, shall not fail to be an Eligible Rollover
      Distribution merely because such portion consists of After-Tax
      Contributions that are not includible in gross income; provided, however,
      that such portion may be transferred only to an individual retirement
      account or annuity described in Section 408(a) or (b) of the Code or to a
      qualified defined contribution plan described in Section 401(a) or 403(a)
      of the Code that agrees to account separately for amounts so transferred,
      including separately accounting for the portion of such distribution that
      is includible in gross income and the portion of such distribution that is
      not so includible.

            (22) The term "EMPLOYEE" shall mean any person who is employed by an
      Employer at a plant, division or operation and in a classification listed
      on Appendix D; provided, however, that such term shall not include (i) any
      person covered by a collective bargaining agreement unless such agreement
      specifically provided for coverage under the Plan; (ii) any person who is
      receiving disability benefits under a long-term disability plan maintained
      by the Company; or (iii) any person who is a nonresident alien and who
      receives no earned income (within the meaning of Section 911(b) of the
      Code) from the Affiliated Group which constitutes income from sources
      within the United States pursuant to Section 861(a)(3) of the Code.

            (23) The term "EMPLOYER" shall mean collectively or individually as
      the context may indicate, the Company and any Affiliate that is a
      participating employer under the Plan, including each foreign corporation
      with respect to which the Company or an Affiliate has entered into an
      agreement under Section 3121(l) of the Code; provided, however, that this
      definition shall apply only with respect to remuneration paid to United
      States citizens who are employed by such foreign corporation and for whom
      contributions under a funded plan of deferred compensation are not
      provided by any other person.

            (24) The term "ENTRY DATE" shall mean each January 1, April 1, July
      1, and October 1 and any other date so designated by the Committee.

            (25) The term "ERISA" shall mean the Employee Retirement Income
      Security Act of 1974, as amended from time to time. Reference to a section
      of ERISA shall include such section and any comparable section or sections
      of any future legislation that amends, supplements, or supersedes such
      section.

            (26) The term "EXEMPT LOAN" shall mean a loan which is entered into
      by the Trustee with the approval and direction of the Company

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      to finance the acquisition of Company Stock and which meets the following
      requirements:

                  (a)   It must be primarily for the benefit of Participants and
                        their beneficiaries;

                  (b)   It must be used to acquire Company Stock, repay the
                        Exempt Loan, or repay a prior Exempt Loan;

                  (c)   It must bear a reasonable rate of interest;

                  (d)   It must be for a specific term and not payable at the
                        demand of any person, except in the event of default;

                  (e)   It must provide for the release of Company Stock from
                        encumbrance either under the principal and interest
                        method of Treas. Reg. Section 54.4975-7(b)(8)(i) or the
                        principal only method under Treas. Reg. Section
                        54.4975-7(b)(8)(ii).

                  (f)   It may be secured by a pledge of Company Stock acquired
                        with its proceeds or the proceeds of a prior Exempt Loan
                        which is being refinanced and repaid with proceeds of
                        the such Exempt Loan. No other assets of the Plan may be
                        pledged as collateral for an Exempt Loan and no lender
                        shall have recourse against any other assets of the
                        Plan. No person entitled to payment under the Exempt
                        Loan shall have any right to assets of the SSOP other
                        than:

                        (1)   the collateral;

                        (2)   the contributions made under the SSOP to meet its
                              obligations under the Exempt Loan; and

                        (3)   earnings on such collateral and the investment of
                              such contributions.

      In the event of default, the value of SSOP assets transferred from the
      Ferro ESOP in satisfaction of the loan must not exceed the amount of
      default. Moreover, in the event the lender is a party in interest under
      ERISA, the Exempt Loan must provide for the transfer of SSOP assets from
      the Ferro ESOP upon default only and only to the extent of the failure of
      the Ferro ESOP to meet the Exempt Loan payment schedule.

            (27) The term "FERRO ESOP" shall mean the portion of the Plan which
      consists of the Company Stock Fund and which is intended to be an employee
      stock ownership plan under Section 4975(e)(7) of the Code and Section
      407(a)(6) of ERISA as well as a stock bonus plan qualified under Section
      401(a) of the Code.

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            (28) The term "FUND" or "TRUST FUND" shall mean the trust fund
      created and maintained in accordance with the provisions of Article IX.

            (29) The term "HIGHLY COMPENSATED EMPLOYEE" shall mean, effective as
      of January 1, 1997, any Employee of the Company or an Affiliate for a Plan
      Year who:

            (a)   during the immediately preceding Plan Year, received
                  compensation (as defined in Appendix A of the Plan without
                  regard to Sections 125, 402(e)(3) and 402(h)(1)(B) of the
                  Code), in excess of $80,000 (such dollar limitation shall be
                  adjusted automatically in accordance with the maximum amount
                  permitted under Section 414(q) of the Code); or

            (b)   during such Plan Year or during the immediately preceding Plan
                  Year owned directly or indirectly 5% or more of the Company or
                  an Affiliate (so that he is a "5% owner" as defined in Section
                  416(I)(1)of the Code);

      A former Employee shall be treated as a Highly Compensated Employee, if
      such Employee was a Highly Compensated Employee when such Employee
      separated from service or such Employee was a Highly Compensated Employee
      at any time after attaining age 55. Notwithstanding the foregoing
      provisions of this paragraph, the sole purpose of this paragraph (29) is
      to define and apply the term Highly Compensated Employee strictly (and
      only) to the extent necessary to satisfy the minimum requirements of
      Section 414(q) of the Code relating to "highly compensated employees."
      This paragraph (29) shall be interpreted, applied and, if and to the
      extent necessary, deemed modified without formal amendments of language,
      so as to satisfy solely the minimum requirements of Section 414(q) of the
      Code.

            (30) The term "HOUR OF SERVICE" shall mean an hour for which an
      Employee is paid, or entitled to be paid, with respect to the performance
      of duties for an Employer or an Affiliate or pursuant to an award or
      agreement requiring an Employer or an Affiliate to pay back wages. Hours
      of Service shall be calculated and credited pursuant to Section
      2530.200-2(b) and (c) of the Department of Labor Regulations which are
      incorporated herein by reference.

            (31) The term "INDIVIDUAL ACCOUNT" shall mean the account maintained
      for each Participant, inactive Participant, and Beneficiary under the Plan
      which reflects the amounts credited or charged to each such Participant,
      inactive Participant, and Beneficiary in accordance with the terms of the
      Plan. Such Individual Account is comprised of a Pre-Tax Contribution
      Account, Catch-up Pre-Tax Contribution Account, a Matching Contribution
      Account, an After-Tax Contribution Account, and a Rollover Account with
      such subaccounts as may be deemed necessary by the Committee.

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            (32) The term "INVESTMENT FUND" shall mean any of the investment
      funds established pursuant to the provisions of Section 4.1.

            (33) The term "LEASED WORKER" shall mean, effective as of January 1,
      1997, a person (other than a person who would be an Employee of an
      Employer without regard to this paragraph (33)) engaged in performing
      services for an Employer (the "Recipient") pursuant to an agreement
      between the Recipient and any other person (the "Leasing Organization")
      who meets the following requirements:

                  (a)   he has performed services for an Employer (or for any
                        other "related persons" determined in accordance with
                        Section 414(n)(6) of the Code) on a substantially
                        full-time basis for a period of at least one year;

                  (b)   such services are under the primary direction or control
                        of the Recipient; and

                  (c)   he is not participating in a "safe harbor plan" of the
                        Leasing Organization. (For this purpose, "safe harbor
                        plan" is a plan which satisfies the requirements of
                        Section 414(n)(5) of the Code, which will be a money
                        purchase pension plan with a nonintegrated employer
                        contribution rate of at least ten percent of
                        Compensation and which provides for immediate
                        participation and full and immediate vesting if Leased
                        Workers do not constitute more than 20 percent of the
                        Recipient's nonhighly compensated work force.)

      A person who is a Leased Worker shall be considered an employee of the
      Employer during any period in which he is a Leased Worker (solely for the
      purpose of determining length of service for participation and vesting
      purposes) but shall not be a Participant and shall not otherwise be
      eligible to become covered by the Plan during any period in which he is a
      Leased Worker. Notwithstanding the foregoing, the sole purpose of this
      paragraph (33) is to define and apply the term "Leased Worker" strictly
      (and only) to the extent necessary to satisfy the minimum requirements of
      Section 414(n) of the Code relating to "leased employees" and this
      paragraph (33) shall be interpreted, applied and, if and to the extent
      necessary, deemed modified without formal amendment of language, so as to
      satisfy solely the minimum requirements of Section 414(n) of the Code and
      no more.

            (34) The term "MATCHING CONTRIBUTION ACCOUNT" shall mean the portion
      of the Individual Account of a Participant that reflects is interest in
      the Investment Funds attributable to the Matching Contributions and
      allocated to such Participant pursuant to the provisions of Sections 3.4
      and 5.1.

            (35) The term "MATCHING CONTRIBUTIONS" shall mean contributions made
      under the Plan by an Employer pursuant to the provisions of Section 3.4,
      excluding, however, any additional Employer contributions under said
      Section.

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            (36) The term "PARTICIPANT" shall mean any Employee who becomes a
      Participant as provided in Article II.

            (37) The term "PLAN" or "SSOP" shall mean the Ferro Corporation
      Savings and Stock Ownership Plan as set forth herein with all amendments,
      modifications and supplements hereafter made.

            (38) The term "PLAN ADMINISTRATOR" shall mean the Company, which is
      the administrator for purposes of the Code.

            (39) The term "PLAN YEAR" shall mean the twelve-month period
      beginning on each January 1 and ending on the subsequent December 31.

            (40) The term "PRE-TAX CONTRIBUTION ACCOUNT" shall mean the portion
      of the Individual Account of a Participant that reflects his interest in
      the investment Funds attributable to Pre-Tax Contributions and that is
      established pursuant to the provisions of Sections 3.1 and 5.1.

            (41) The term "PRE-TAX CONTRIBUTIONS" shall mean contributions made
      under the Plan on behalf of an Employee pursuant to the provisions of
      Section 3.1.

            (42) The term "REEMPLOYMENT DATE" shall mean the first date on which
      an Employee completes an Hour of Service after a Severance Date.

            (43) The term "ROLLOVER ACCOUNT" shall mean the portion of the
      Individual Account of a Participant that reflects his interest in the
      Investment Funds attributable to Rollover Contributions and that is
      established pursuant to the provisions of Sections 3.5 and 5.1.

            (44) The term "ROLLOVER CONTRIBUTION" shall mean the amount
      contributed by an Employee to the Plan pursuant to the provisions of
      Section 3.5.

            (45) The term "SERVICE" shall mean the service credited to an
      Employee for eligibility purposes in accordance with the provisions of
      Section 2.4.

            (46) The term "SEVERANCE DATE" shall mean the earliest of (i) the
      date on which an Employee retires, dies, or otherwise terminates
      employment, (ii) the last day of employment for which an Employee receives
      compensation, or (iii) the first anniversary of the first date of a period
      in which an Employee remains absent from employment with an Employer for
      any reason; provided, however, that if an Employee is absent from
      employment on an approved leave of absence due to illness or injury, he
      shall not incur a Severance Date by reason of such absence if he returns
      to employment at the conclusion of such approved leave of absence; and
      provided further, that if an Employee is absent from employment while in
      active service in the Armed Forces of the United States, his Severance
      Date shall be the date on which he terminated his employment, unless he
      returns to employment with an Employer or an affiliate during the time
      period prescribed by federal law; and provided further, that no Employee
      shall

                                     - 9 -
<PAGE>
      incur a Severance Date until the second anniversary of the first date on
      which such Employee is absent from employment with the Employer or an
      Affiliate for maternity or paternity reasons. For purposes of this
      paragraph (44), an absence for maternity or paternity reasons means an
      absence due to (i) the pregnancy of the Employee, (ii) the birth of a
      child of the Employee, (iii) the placement of a child with the Employee in
      connection with the adoption of such child by the Employee, or (iv) the
      caring of such child for a period beginning immediately following such
      birth or placement. Notwithstanding the foregoing, if an Employee retires
      or dies, or his employment otherwise is terminated during a period of
      absence from employment for any reason other than retirement or
      termination, his Severance Date shall be the date of such retirement,
      death, or other termination of employment.

            (47) The term "SUSPENSE FUND" shall mean the subfund under the Ferro
      ESOP which contains Company Stock acquired by the Trustee with the
      proceeds of an Exempt Loan under the provisions of Section 11.3 and which
      has not been released and allocated to the Individual Accounts of
      Participants.

            (48) The term "TRUST AGREEMENT" shall mean the agreement entered
      into between the Company and the Trustee pursuant to Article IX.

            (49) The term "TRUSTEE" shall mean any financial institution
      designated in the Trust Agreement to hold in trust any assets of the Plan
      for the purposes of providing benefits under the Plan and shall include
      any successor to the Trustee initially designated thereunder.

            (50) The term "VALUATION DATE" shall mean each business day that the
      Trustee and the New York Stock Exchange are open.

            (51) The term "VESTING SERVICE" shall mean the service credited to a
      Participant and utilized to determine such Participant's vested interest
      in his Matching Contribution Account pursuant to the provisions of Section
      6.3. For purposes of Article VI, the years of Vesting Service credited to
      a Participant shall be equal to his years of Service determined under
      Section 2.4.

      1.2   CONSTRUCTION

            The headings and subheadings in the Plan have been inserted for
convenience of reference only and shall not affect the construction of the
provisions hereof. In any necessary construction the masculine shall include the
feminine and the singular the plural, and vice versa.

                                     - 10 -
<PAGE>
                                   ARTICLE II

                        PARTICIPATION AND VESTING SERVICE

            2.1   PARTICIPATION

                  Each Employee shall be eligible to become a Participant on the
Entry Date immediately following the date on which he first meets all of the
following conditions:

                  (a)   he has completed at least six months (three months on
                        and after January 1, 2001) of Service;

                  (b)   he is receiving Compensation from an Employer; and

                  (c)   he has elected to participate in the Plan as specified
                        in Section 2.3.

            2.2   NOTICE OF ELIGIBILITY TO COVERED EMPLOYEES

                  Prior to each Entry Date, each Employee who is first eligible
to become a Participant on such Entry Date shall be notified of his eligibility
and the requirements for participation in the Plan.

            2.3   ELECTION TO PARTICIPATE

                  Each Employee who becomes eligible to participate in the Plan
shall make an election in the form, manner, and time prescribed by the Committee
with respect to:

                  (a)   his authorization for his Employer to reduce his
                        Compensation in order to make Pre-Tax Contributions on
                        his behalf pursuant to the provisions of Section 3.1.

                  (b)   his authorization for his Employer to make payroll
                        deductions with respect to his After-Tax Contributions
                        pursuant to the provisions of Section 3.3; and

                  (c)   his investment election with respect to his Pre-Tax
                        Contributions and After-Tax Contributions pursuant to
                        the provisions of Article IV.

            2.4   SERVICE FOR ELIGIBILITY PURPOSES

                  An Employee shall be credited with years of Service beginning
on his Employment Commencement Date, or his Reemployment Date, if applicable,
and ending on his next following Severance Date. If an Employee's Reemployment
Date occurs within 12 months after the earlier of (i) his immediately preceding
Severance Date, or (ii) the first day of a period in which he remains absent
from employment with an Employer or an Affiliate for any reason, he shall be
credited with Service for the period of absence preceding such Reemployment Date
if he otherwise is not credited with Service for such absence under the
foregoing provisions of this Section 2.4. In the event that a Severance Date
occurs with respect to an Employee and the provisions of the foregoing sentence
of this Section 2.4 do not apply, such Employee shall forfeit his years of
Service credited with respect to the period ending on such Severance Date, and
the Employee's years of Service shall be reinstated upon his completion of an
Hour of Service as an Employee, if his period of absence is less than five years
or in the event it is greater than five years:

                                     - 11 -
<PAGE>
                  (i)   if he had any nonforfeitable interest to any portion of
                        his Individual Account attributable to Matching
                        Contributions at the time of his Severance Date; or

                  (ii)  if upon returning to service his period of absence was
                        less than his years of Service prior to his Severance
                        Date.

An Employee's years of Service as determined under this Section 2.4 shall be
computed to the nearest month and aggregated.

            2.5   CHANGES IN EMPLOYMENT STATUS

                  If an Eligible Employee who is a Participant ceases to be an
Employee but continues in the employment of (i) the Employer in some other
capacity, or (ii) an Affiliate, he nevertheless shall continue as an inactive
Participant until his participation is otherwise terminated in accordance with
the provisions of the Plan; provided, however, that such Participant shall share
in Matching Contributions in accordance with the provisions of Section 3.4 for
any Plan Year quarter of such participation only to the extent and on the basis
of his Pre-Tax Contributions made during such quarter; and provided further,
that such Participant shall not be permitted to make, or have made on his
behalf, Pre-Tax Contributions or After-Tax Contributions at any time during
which he is employed in any capacity other than as an Employee. If a person is
transferred directly from employment (i) with the Employer in a capacity other
than as an Employee or (ii) with an Affiliate, to employment with the Employer
as an Employee, his service with the Employer or such Affiliate shall be
included in determining his eligibility under Section 2.1 and shall be included
in his years of Vesting Service.

            2.6   CREDIT UPON ACQUISITION

                  If the Employer acquires an entity under an arrangement
whereby the acquired entity is not or ceases to be a separate entity, the
employees of the acquired entity shall be considered as new Employees of the
Employer on the date of the acquisition and shall become Participants hereunder
in accordance with Section 2.1. Notwithstanding the preceding sentence, the
Committee may provide for recognition of employment (including, if desired,
Compensation) by the acquired entity prior to the acquisition date for any
purpose or purposes of the Plan.

            2.7   REEMPLOYMENT

                  In the event a Participant incurs a Severance Date and is
reemployed as an Employee, he shall be eligible to become a Participant again on
his Reemployment Date.

                                     - 12 -
<PAGE>
                                   ARTICLE III

                                  CONTRIBUTIONS

            3.1   PRE-TAX CONTRIBUTIONS

                  Pre-Tax Contributions shall be made to the Plan on behalf of
Participants in the manner hereinafter set forth.

                  (a) ELECTION AND AMOUNT OF PRE-TAX CONTRIBUTIONS. Except as
            otherwise provided in this Section 3.1 and subject to the provisions
            of Appendix A, each Participant may elect to have Pre-Tax
            Contributions made to the Plan by his Employer which shall be an
            integral percentage of his Compensation of not less than one percent
            nor more than fifteen percent, or such other percentage as may be
            designated by the Company; provided, however, that in no event shall
            such Pre-Tax Contributions of a Participant under the Plan and all
            other qualified plans maintained by the Affiliated Group during a
            calendar year exceed the dollar limit set forth in Section 402(g)(1)
            of the Code in effect for the calendar year as adjusted in
            accordance with the provisions of Sections 402(g)(5) and 415(d) of
            the Code.

                  (b) CHANGE OF ELECTION. Each Participant may elect
            prospectively to increase or reduce his designated percentage
            (within the appropriate minimum and maximum percentages set forth in
            paragraph (a) above) in the manner, time, and form specified by the
            Committee.

                  (c) SUSPENSION OF PRE-TAX CONTRIBUTIONS. Each Participant may
            elect to revoke prospectively such salary reduction agreement in the
            manner, time, and form specified by the Committee. A Participant may
            again enter into a salary reduction agreement for recommencement of
            Pre-Tax Contributions in the manner, time, and form specified by the
            Committee.

                  (d) CREDITING OF PRE-TAX CONTRIBUTIONS. Pre-Tax Contributions
            shall be credited to the Participant's Pre-Tax Contribution Account
            and, effective February 3, 1997, shall be remitted to the Trustee as
            soon as possible but in no event later than the 15th business day of
            the month following the month in which such amounts would otherwise
            have been payable to the Participant in cash.

            3.2 CATCH-UP PRE-TAX CONTRIBUTIONS. Effective for each Plan Year
beginning on or after January 1, 2002, all Participants who have attained at
least age 50 prior to the close of such Plan Year shall be eligible to make
Catch-up Pre-Tax Contributions in accordance with, and subject to, the
limitation of Section 414(v) of the Code. Such Catch-up Pre-Tax Contributions
shall not be taken into account for purposes of the Plan provisions implementing
the requirements of Sections 401(k)(3), 401(k)(11), 401(k)(12), 410(b), 415 or
416 of the Code, as applicable, by reason of the making of such Catch-up 401(k)
Contributions and shall not be taken into account for the limitations of Section
3.1 or Matching Contributions under Section 3.4.

            3.3   AFTER-TAX CONTRIBUTIONS

                  After-Tax Contributions shall be made to the Plan by
Participants in the manner hereinafter set forth.

                  (a) ELECTION AND AMOUNT OF AFTER-TAX CONTRIBUTIONS. Each
            Participant may elect to make After-Tax Contributions by payroll
            deduction in an integral

                                     - 13 -
<PAGE>
            percentage of his Compensation of not less than one percent nor more
            than ten percent of his Compensation during a pay period. Any
            After-Tax Contribution election shall be made in the form, time, and
            manner specified by the Committee and shall be effective as soon as
            practicable after the date the election is made; provided, however,
            that the After-Tax Contributions made by Highly Compensated
            Employees with respect to a Plan Year shall not exceed the
            limitations set forth in Appendix A.

                  (b) CHANGE OF ELECTION. A Participant electing to contribute
            After-Tax Contributions to the Plan pursuant to this Section 3.3,
            may increase or reduce his After-Tax Contribution percentage within
            permissible limits in the manner, time, and form specified by the
            Committee.

                  (c) SUSPENSION OF AFTER-TAX CONTRIBUTIONS. Any Participant may
            prospectively elect to cease future After-Tax Contributions to the
            Plan in the manner, time, and form specified by the Committee. In
            the event such Participant desires to thereafter recommence making
            After-Tax Contributions, he shall be allowed to do so in the manner,
            time, and form specified by the Committee.

                  (d) CREDITING OF AFTER-TAX CONTRIBUTIONS. Amounts contributed
            as After-Tax Contributions shall be credited to the Participant's
            After-Tax Contribution Account and shall be remitted to the Trustee
            as soon as possible but in no event later than the 15th business day
            of the month following the month in which such amounts would
            otherwise have been payable to the Participant in cash.

            3.4   MATCHING CONTRIBUTIONS

                  On and after July 1, 1999, but prior to January 1, 2001, as of
each Contribution Date, the Employer shall cause to be paid to the Trustee, in
cash or in-kind in its sole discretion, a quarter-annual Matching Contribution
determined in the following manner:

                  (1) If such Matching Contribution is made in cash, such
            contribution shall be an amount equal to the average of the high and
            low prices of the Company Stock on the New York Sock Exchange on
            such Contribution Date multiplied by the quotient of the aggregate
            Pre-Tax Contributions of Participants who are Employees during the
            last pay period of the calendar quarter ending on such Contribution
            Date for the calendar quarter ending on such Contribution Date that
            are attributable to the first two percent of the Compensation of
            such Participants for such calendar quarter plus one-half of the
            aggregate Pre-Tax Contributions of such Participants for such
            calendar quarter that are attributable to amounts in excess of two
            percent, but not in excess of eight percent, of the Compensation of
            such Participants for such calendar quarter divided by the average
            of the high and low prices of Company Stock on the New York Stock
            Exchange on such Contribution Date.

                  (2) If such Matching Contribution is made in kind, such
            contribution shall be the number of shares of Company Stock equal to
            the quotient of the aggregate Pre-Tax Contributions of Participants
            who are Employees during the last pay period of the calendar quarter
            ending on the Contribution Date for the calendar quarter ending on
            such Contribution Date that are attributable to the first two
            percent of the Compensation of such Participants for such calendar
            quarter plus one-half of the aggregate Pre-Tax Contribution of such
            Participants for such calendar quarter that are attributable to
            amounts in excess of two percent, but not in excess of eight
            percent, of the Compensation of such Participants for such calendar
            quarter divided by the average of the high and low prices of Company
            Stock on the New York Stock

                                     - 14 -
<PAGE>
            Exchange on such Contribution Date. On and after January 1, 2001, as
            of each Contribution Date, the Employer shall contribute to the Plan
            with respect to each Participant who is an Employee during the pay
            period ending with such Contribution Date, a Matching Contribution
            in an amount equal to 100% of the first two and 50% of the next six
            percent of Compensation elected by each such Participant as Pre-Tax
            Contributions during the pay period ending on such Contribution
            Date.

            3.5   ROLLOVER CONTRIBUTIONS

                  An Employee who is eligible to receive an Eligible Rollover
Distribution or who has had a qualified total distribution (within the meaning
of Section 402(a)(5)(E) of the Code) distributed to him from a plan which meets
the requirements of Section 401(a) of the Code may cause such a distribution to
be transferred to the Plan, provided the following conditions are met:

                  (a)   In case of a transfer directly from such a plan, the
                        transfer occurs on or before the 60th day following his
                        receipt of the distribution from the other plan and the
                        amount transferred equals the amount of the total
                        distribution he received from the other plan less the
                        amount, if any, considered contributed by him in
                        accordance with Section 402(e)(4)(D)(i) of the Code;

                  (b)   In the case of a rollover (or transfer) from such an
                        individual retirement account, such rollover (or
                        transfer) meets the requirements of Section
                        408(d)(3)(A)(ii) of the Code;

                  (c)   The transfer consists only of cash; and

                  (d)   The amount transferred is no less than $2,000.00;
                        provided, however, that such minimum may be waived by
                        the Committee in the case of a transfer due to an
                        acquisition by the Employer.

The Committee shall develop such procedures, and may require such information
from the Employee desiring to make such transfer, as it deems necessary or
desirable to determine that the proposed transfer will meet the requirements of
this Section 3.5 and the Code. Upon approval by the Committee, the amount
transferred shall be deposited in the Fund under the Plan and shall be credited
to the Employee's Rollover Account in accordance with procedures established by
the Committee.

                                     - 15 -
<PAGE>
                                   ARTICLE IV

                           INVESTMENT OF CONTRIBUTIONS

            4.1   ESTABLISHMENT AND MAINTENANCE OF FUNDS

                  The Company shall cause at least three Investment Funds to be
established and maintained at all times. Each such Investment Fund shall be
diversified and have different risk and return characteristics from the other
Investment Funds. Any Investment Fund which invests in investments with
restrictions regarding Investment Funds to which investment transfers may be
made or to which a minimum investment period is applicable shall not be
considered as one of such requisite three Investment Funds.

            4.2   INVESTMENT OF PRE-TAX CONTRIBUTIONS, CATCH-UP PRE-TAX
                  CONTRIBUTIONS, AFTER-TAX CONTRIBUTIONS AND ROLLOVER
                  CONTRIBUTIONS

                  Any Pre-Tax Contributions, After-Tax Contributions, and any
Rollover Contributions made to the Plan on behalf of a Participant shall be
invested in the Investment Fund or Funds elected by such Participant in the
form, manner and time prescribed by the Committee.

            4.3   INVESTMENT OF MATCHING CONTRIBUTIONS

                  Matching Contributions made to the Plan shall be invested in
the Ferro ESOP through the Company Stock Fund and shall be applied first to the
extent that such an investment would result in an allocation of Company Stock
from the Suspense Fund and then to Company Stock in general. All such
investments and resulting allocations shall be made on a pro rata basis. The
Trustee shall purchase Company Stock in the market or from the Company;
provided, however, that any such purchase shall be made only in exchange for not
more than fair market value; and provided further, that no commission shall be
charged or paid with respect to any purchase or sale of Company Stock by the
Trustee, except in the case of Company Stock purchased or sold in the
over-the-counter market through a broker-dealer which is a member of the
National Association of Securities Dealers or on a national securities exchange.

            4.4   INVESTMENT ELECTIONS FOR PREVIOUSLY ALLOCATED AMOUNTS

                  Each Participant may elect to change the investment of any
percentage of the Current Balance of his Individual Account (other than his
Matching Contribution Account and his Pre-Tax Contribution Account invested in
convertible preferred stock of the Company in the Company Stock Fund which may
be transferred in accordance with the provisions of Section 11.6) from the
Investment Fund in which it is invested to another Investment Fund or Funds.
Such election shall be made in the manner, time, and form specified by the
Committee.

            4.5   VOTING OF COMPANY STOCK

                  Each Participant or Beneficiary who has shares of Company
Stock allocated to his Individual Account under the Plan shall be a named
fiduciary with respect to the voting of Company Stock held in the Plan and shall
have the following powers and responsibilities:

                  (a)   Prior to each annual or special meeting of the
                        shareholders of the Company, the Company shall cause to
                        be sent to each Participant who has Company Stock
                        allocated to his Individual Account a copy of the proxy
                        solicitation material therefor, together with a form
                        requesting confidential voting instructions with respect
                        to the voting of such shares.

                                     - 16 -
<PAGE>
                        Upon receipt of a Participant's instructions, the
                        Trustee shall then vote in person, or by proxy, such
                        shares of Company Stock as so instructed.

                  (b)   Prior to each annual or special meeting of shareholders
                        of the Company, the Company shall cause to be sent to
                        each Participant who has Company Stock allocated to his
                        Individual Account a copy of proxy solicitation
                        material, together with a form requesting confidential
                        voting instructions, with respect to the voting of
                        Company Stock for which the Trustee does not receive
                        instructions as provided in paragraph (a) as well as
                        Company Stock which is unallocated and held in the
                        Suspense Fund. Each such Participant shall instruct the
                        Trustee to vote the number of such unallocated and
                        uninstructed shares of Company Stock equal to the
                        proportion that the number of the shares of Company
                        Stock allocated to his Individual Account bears to the
                        total number of shares of Company Stock in the Plan for
                        which instructions have been received as provided for in
                        subparagraph (a). The Trustee shall then vote, in
                        person, or by proxy, such shares of Company stock as so
                        instructed.

                  (c)   Instructions received from Participants and
                        Beneficiaries by the Trustee regarding the voting, the
                        tendering, or the exchanging of Company Stock shall be
                        held in strictest confidence and shall not be divulged
                        to any other person, including officers or employees of
                        the Company, except as otherwise required by law,
                        regulation or lawful process.

                  (d)   The Company shall cause the Trustee to furnish to each
                        Participant who has Company Stock credited to his
                        Individual Account under the Plan notice of any tender
                        or exchange offer for, or a request or invitation for
                        tenders or exchanges of, Company Stock made to the
                        Trustee. The Trustee shall request from each such
                        Participant instructions as to the tendering or
                        exchanging of Company Stock credited to his Individual
                        Account and for this purpose the Trustee shall provide
                        Participants with a reasonable period of time in which
                        they may consider any such tender or exchange offer for,
                        or request or invitation for tenders or exchanges of,
                        Company Stock made to the Trustee. Within the time
                        specified by the Trustee, the Trustee shall tender or
                        exchange such Company Stock as to which the Trustee has
                        received instructions to tender or exchange from
                        Participants.

                  (e)   The Company shall cause the Trustee to furnish to each
                        Participant who has Company Stock allocated to his
                        Individual Account notice of any tender or exchange
                        offer for, or a request or invitation for tenders or
                        exchanges of, Company Stock made to the Trustee. The
                        Trustee shall request from each such Participant
                        instructions as to the tendering or exchanging of
                        Company Stock for which the Trustee does not receive
                        instructions as provided in subparagraph (d) as well as
                        Company Stock which is unallocated and held in the
                        Suspense Fund. Each such Participant shall instruct the
                        Trustee with respect to the tendering or exchanging of
                        the number of such unallocated and unvoted shares of
                        Company Stock equal to the proportion that the number of
                        the shares of Company Stock allocated to his Individual
                        Account bears to the total number of shares of Company
                        Stock in the Plan for which instructions are received.
                        Within the time specified by the Trustee, the Trustee
                        shall then tender or exchange such shares of Company
                        Stock as to which the Trustee has so received
                        instructions to tender or exchange.

                                     - 17 -
<PAGE>
            4.6   INVESTMENT RESPONSIBILITY

                  The Plan is intended to constitute a plan described in Section
404(c) of ERISA and DOL Regs. Section 2550.404c-1 and insofar as the Plan
complies with said Section 404(c), Plan fiduciaries shall be relieved of
liability for any losses which are the direct result of investment instructions
given by Participants and Beneficiaries.

                                     - 18 -
<PAGE>
                                    ARTICLE V

                       ALLOCATIONS TO INDIVIDUAL ACCOUNTS

            5.1   INDIVIDUAL ACCOUNTS

                  An Individual Account shall be established and maintained in
the name of each Participant to which all amounts allocated to each such
Participant pursuant to Article III, this Article V, and Article XI shall be
credited. Each Individual Account shall be comprised of whichever of the
following accounts with appropriate subaccounts are applicable to a particular
Participant: a Pre-Tax Contribution Account, a Catch-up Pre-Tax Contribution
Account (on and after January 1, 2002), a Matching Contribution Account, an
After-Tax Contribution Account and a Rollover Account. The Committee also shall
maintain, or cause to be maintained, records to indicate the amount of each
Participant's various accounts and subaccounts, if applicable, comprising his
Individual Account invested in each Investment Fund and comprising his interest
under the Plan.

            5.2   ALLOCATION OF MATCHING CONTRIBUTIONS

                  Subject to the provisions of Article XI, as of each
Contribution Date, the Matching Contribution Account of each Participant shall
have allocated to it the share of Matching Contributions contributed on behalf
of such Participant in accordance with Section 3.3. Subject to the provisions of
Section 3.3, prior to January 1, 2001, Matching Contributions for a calendar
quarter shall be allocated only to the Matching Contribution Accounts of
Participants for whom Pre-Tax Contributions were made to the Plan during such
quarter and who were actively employed by an Employer on the first day of the
last pay period of such quarter. On and after January 1, 2001, Matching
Contributions for each pay period shall be allocated to the Matching
Contribution Accounts of Participants for whom Pre-Tax Contributions were made
to the Plan during such pay period.

            5.3   VALUATIONS AND ADJUSTMENTS

                  As of each Valuation Date, the Trustee shall determine the
fair market value of the assets of the Trust Fund. Each Individual Account shall
be adjusted to reflect the effect of income, profits and losses, expenses, and
all other transactions with respect to such Individual Account after such
adjustments have been made, including any contributions allocated to such
Individual Account.

            5.4   TRUSTEE AND COMMITTEE JUDGMENT CONTROLS

                  In determining the fair market value of the Fund and of
Individual Accounts, the Trustee, the Company, and the Committee shall exercise
their best judgment, and all such allocations shall be deemed to have been made
as of the Valuation Date, regardless of when actual allocations were undertaken.

                                     - 19 -
<PAGE>
                                   ARTICLE VI

                            VESTING AND DISTRIBUTIONS

            6.1   VESTING UPON RETIREMENT OR DISABILITY

                  Upon attaining age 65 (the Plan's normal retirement age) a
Participant shall be fully vested in the Current Balance of his Individual
Account. Upon retirement after attaining age 65 or due to Disability, a
Participant shall be eligible to receive the Current Balance of his Individual
Account in accordance with the provisions of Sections 6.5 and 6.6, regardless of
the number of his years of Vesting Service.

            6.2   VESTING UPON DEATH

                  Upon the death of a Participant before retirement or other
termination of employment, the Current Balance of such Participant's Individual
Account shall become fully vested and payable to such Participant's Beneficiary
in accordance with Sections 6.5 and 6.6.

            6.3   VESTING UPON TERMINATION OF EMPLOYMENT

                  Upon termination of employment for any reason other than
retirement at or after age 65, Disability or death, a Participant shall be
eligible to receive the vested portion of the Current Balance of his Matching
Contribution Account plus 100% of all other accounts comprising his Individual
Account. The vested portion of the Participant's Matching Contribution Account
shall be determined in accordance with the following schedule:

<TABLE>
<CAPTION>
                       Years of Vesting Service                      Percentage
                       ------------------------                      ----------
<S>                    <C>                                           <C>
                       Less than 1 year                                  0%
                       1 year, but less than 2                          20%
                       2 years, but less than 3                         40%
                       3 years, but less than 4                         60%
                       4 years, but less than 5                         80%
                       5 years or more                                 100%
</TABLE>

            6.4   FORFEITURES

                  In the event a Participant terminates employment for reasons
other than retirement after attainment of age 65, Disability, or death and
receives a distribution of the vested portion of his Matching Contribution
Account prior to incurring a five-year period of severance after his Severance
Date, any portion of his Matching Contribution Account in which he does not have
a vested interest shall be forfeited. If a Participant has a zero vested
interest in his Matching Contribution Account, such Matching Contribution
Account shall be treated as though it was distributed immediately upon the
termination of the employment of such Participant. If a Participant receives, or
is deemed to have received, a distribution of his Matching Contribution Account
that is less than the total value of such Matching Contribution Account and such
Participant subsequently resumes employment with the Affiliated Group prior to
the date he incurs a five-year period of severance, his Matching Contribution
Account shall be restored to the amount it was on the date of distribution,
unadjusted for any gains or losses occurring subsequent to such date of
distribution. Restoration of a Matching Contribution Account shall include
restoration of all protected benefits under Section 411(d)(6) of the Code with
respect to such restored benefit in accordance with regulations issued by the
Secretary of Treasury. Such restoration shall be made

                                     - 20 -
<PAGE>
from amounts forfeited and not yet applied to reducing Matching Contributions
and then from special Company Contributions. Such restorations shall not
constitute an annual addition for purposes of Section 415 of the Code. In the
event that a Participant terminates employment for reasons other than retirement
after attainment of age 65, Disability, or death with less than a 100% vested
interest in his Matching Contribution Account and does not subsequently resume
employment with the Affiliated Group prior to incurring a five-year period of
severance after his Severance Date, the portion of his Matching Contribution
Account in excess of his vested interest shall be forfeited and the vested
interest in his Matching Contribution Account shall not increase as a result of
any subsequent employment with the Affiliated Group. Forfeitures under this
Section 6.4 shall be applied to restore Matching Contribution Accounts and then
to reduce future Matching Contributions made to the Plan.

            6.5   METHODS OF PAYMENT OF DISTRIBUTABLE BENEFITS

                  Except as specifically provided otherwise, upon retirement,
death, Disability, or termination of employment of a Participant, the portion of
a Participant's Individual Account invested in the Company Stock Fund shall be
distributed at the election of the Participant or Beneficiary to him either in
whole shares of common stock of the Company with any fractional shares
distributed in cash, or in cash. The balance of such Participant's Individual
Account shall be distributed in cash. A Participant or Beneficiary shall request
the form of distribution of his benefits under the Plan in the manner and time
prescribed by the Committee. Notwithstanding the foregoing, if for Plan Years
beginning after August 5, 1997, the value of a Participant's or a Beneficiary's
vested Individual Account does not exceed $5,000 (or such higher amount
permitted under Section 417(e) of the Code) distribution thereof shall be made
to such Participant or Beneficiary as soon as practicable in a single lump sum
payment. For Plan Years beginning after August 5, 1997, no distribution of a
vested Individual Account which is in excess of $5,000 (or such higher amount
permitted under Section 417(e) of the Code), may be made to a Participant prior
to normal retirement age unless such Participant consents in writing to such
distribution, not more than 90 days prior to commencement of distribution. For
purposes of the foregoing sentence, the involuntary distribution of the value of
the Individual Account of a Participant of $5,000 or less shall be determined on
and after January 1, 2002, without regard to that portion of such an Individual
Account that is attributable to Rollover Contributions (and earnings allocable
thereto).

            6.6   TIMING OF PAYMENTS OF DISTRIBUTABLE BENEFITS

                  Notwithstanding any provision in the Plan to the contrary,
effective as of January 1, 1997, all distributions required under this Article
VI shall be determined and made in accordance with the proposed regulations
under Section 401(a)(9) of the Code, including the minimum distribution
incidental benefit requirements of Section 1.401(a)(9)-2 of the proposed Treas.
Regs. Accordingly, the entire interest of a Participant in his Individual
Account must be distributed or must begin to be distributed no later than the
Participant's Mandatory Distribution Date. A Participant's Mandatory
Distribution Date shall be the date determined under paragraph (a) or the date
determined under paragraph (b), whichever is earlier:

                  (a)   unless the Participant elects otherwise, the 60th day
                        after the end of the Plan Year in which the latest of
                        the following dates occurs: (i) the Participant's normal
                        retirement date, (ii) the tenth anniversary of the date
                        on which the Participant first became a Participant and
                        (iii) the date of the Participant's retirement or other
                        termination of employment; or

                  (b)   the April 1 following the calendar year in which the
                        later of the following applicable dates occurs: (i) the
                        date on which the

                                     - 21 -
<PAGE>
                        Participant attains age 70-1/2, or (ii) the date on
                        which the Participant retires (except for a Participant
                        who is a 5% owner, as defined in Section 416(i)(1)(B)(i)
                        of the Code, the date determined under this paragraph
                        (b) shall be April 1 of the calendar year following the
                        calendar year in which the Participant attains age
                        70-1/2, without regard to the date of the Participant's
                        retirement).

In the event that a 5% owner has not terminated employment as of his Mandatory
Distribution Date, he shall receive distribution of his Individual Account
pursuant to the provisions of this Section 6.6 in effect prior to January 1,
1997. In the event that any Participant (other than a 5% owner) who is employed
by the Affiliated Group on January 1, 1997, has begun to receive distribution of
his Individual Account pursuant to the provisions of the Plan in effect prior to
January 1, 1997, such Participant may elect in writing in the manner and form
required by the Committee to have such distributions that become payable after
January 1, 1997 terminate until his Individual Account become payable after his
retirement in accordance with the terms of the Plan in effect at such time. Any
Participant (other than a 5% owner) who attains age 70-1/2 in 1996, 1997, or
1998 may elect in writing in the manner, time, and form required by the
Committee to defer payments from his Individual Account until after his
retirement pursuant to the terms of the Plan in effect at such time. In the
event that such a Participant does not make such an election, distribution of
his Individual Account shall continue to be made to him pursuant to the
provisions of this Section 6.6 in effect prior to January 1, 1997. In the event
that a Participant dies before the Participant's Mandatory Distribution Date,
distribution of his Individual Account is to be made in a single sum, such
distribution must be completed by December 31 of the calendar year containing
the fifth anniversary of the Participant's death. Notwithstanding any other
provision of the Plan to the contrary with respect to distributions under the
Plan made on or after January 1, 2002, the Plan will apply the minimum
distribution requirements of Section 401(a)(9) of the Code in accordance with
the regulations under Section 401(a)(9) of the Code that were proposed on
January 17, 2001 (the "2001 Proposed Regulations"). This provision relating to
distributions under the 2001 Proposed Regulations shall continue in effect until
the last calendar year beginning before the effective date of the final
regulations under Section 401(a)(9) of the Code or such other date as may be
published by the Internal Revenue Service.

            6.7   MANAGEMENT AND INVESTMENT OF INDIVIDUAL ACCOUNTS AFTER
                  TERMINATION OF EMPLOYMENT

                  An Individual Account of a Participant who is eligible for a
distribution of all or a portion of his Individual Account may, until complete
distribution of such Individual Account, change the investment of any percentage
of the Current Balance of his Individual Account in accordance with the
provisions of Section 4.4. If the Participant dies before his Individual Account
has been paid in full to such Participant, the remaining portion of his
Individual Account shall be paid in cash or in shares of Common Stock of the
Company as soon as practicable to the Beneficiary, but not later than the
applicable date under Section 6.6. In the event of the death of a Beneficiary
under such circumstances, his Individual Account shall be paid in accordance
with the provisions of Section 6.6.

            6.8   BENEFITS TO MINORS AND INCOMPETENTS

                  In case any person entitled to receive payment under the Plan
shall be a minor, the Committee, in its discretion, may dispose of such amount
in any one or more of the following ways:

                  (1)   By payment thereof directly to such minor;

                                     - 22 -
<PAGE>
                  (2)   By application thereof for the benefit of such minor;

                  (3)   By payment thereof to either parent of such minor or to
                        any adult person with whom such minor may at the time be
                        living or to any person who shall be legally qualified
                        and shall be acting as guardian of the person or the
                        property of such minor or to a custodian for such minor
                        under the Uniform Gifts to Minors Act of any state;
                        provided only that the parent or adult person to whom
                        any amount shall be paid shall have advised the
                        Committee in writing that he will hold or use such
                        amount for the benefit of such minor.

In the event that it shall be found that a person entitled to receive payment
under the Plan is physically or mentally incapable of personally receiving and
giving a valid receipt for any payment due (unless prior claim therefor shall
have been made by a duly qualified committee or other legal representative),
such payment may be made to the legal guardian of such person, or to a custodian
for such minor under the Uniform Gifts to Minors Act of any state.

            6.9   ELIGIBLE ROLLOVER DISTRIBUTIONS

                  An Employee and Beneficiary who receives an Eligible Rollover
Distribution may elect in the time and in a manner prescribed by the Committee
to receive all or any portion of such Eligible Rollover Distribution for
transfer to an Eligible Retirement Plan; provided, however, that only one such
transfer may be made with respect to an Eligible Rollover Distribution to an
Eligible Retirement Plan. Notwithstanding the foregoing, the Participant may
elect, after receiving the notice required under Section 402(f) of the Code, to
receive such Eligible Rollover Distribution prior to the expiration of the
30-day period beginning on the date such Participant is issued such notice;
provided that the Participant or beneficiary is permitted to consider his
decision for at least 30 days and is advised of such right in writing.

            6.10  ELECTION OF FORMER SCHEDULE.

                  In the event the Company adopts an amendment to the Plan that
directly or indirectly affects the computation of a Participant's vested
interest in his Individual Account, any Participant with three or more Years of
Vesting Service shall have a right to have his nonforfeitable interest in his
Individual Account continue to be determined under the vesting schedule in
effect prior to such amendment rather than under the new vesting schedule,
unless the vested interest of such Participant in his Individual Account under
the Plan, as amended, at any time is not less than such interest determined
without regard to such amendment. Such Participant shall exercise such right by
giving written notice of his exercise thereof to the Company within 60 days
after the latest of (i) the date he receives notice of such amendment from the
Company, (ii) the effective date of the amendment, or (iii) the date the
amendment is adopted. Notwithstanding the foregoing provisions of this Section
6.10, the vested interest of each Participant on the effective date of such
amendment shall not be less than his vested interest under the Plan as in effect
immediately prior to the effective date thereof.

                                     - 23 -
<PAGE>
                                   ARTICLE VII

                                  BENEFICIARIES

            7.1   DESIGNATION OF BENEFICIARY

                  In the event of the death of a Participant or former
Participant prior to distribution in full of his Individual Account, the spouse,
if any, of such Participant or former Participant shall be his Beneficiary and
receive distribution of his remaining interest in accordance with the provisions
of Sections 6.5 and 6.6; provided, however, that a Participant may designate a
person or persons other than his spouse as his Beneficiary, if the requirements
of Section 7.3 are met; and provided further that for Plan Years beginning after
August 5, 1997, if such interest exceeds $5,000 (or such higher amount permitted
under Section 417(e) of the Code), no distribution shall occur without the
consent and at the election of such Beneficiary prior to the date that the
deceased Participant would have attained normal retirement age.

            7.2   BENEFICIARY IN THE ABSENCE OF DESIGNATED BENEFICIARY

                  If a Participant or former Participant who dies does not have
a surviving spouse and if no Beneficiary has been designated pursuant to the
provisions of Section 7.1 or if no Beneficiary survives such Participant or
former Participant, then the Beneficiary shall be the estate of such Participant
or former Participant. If any Beneficiary designated pursuant to Section 7.1
dies after becoming entitled to receive distributions hereunder and before such
distributions are made in full, and if no other person or persons have been
designated to receive the balance of such distributions upon the happening of
such contingency, the estate of such deceased Beneficiary shall become the
Beneficiary as to such balance.

            7.3   SPOUSAL CONSENT TO BENEFICIARY DESIGNATION

                  In the event a Participant or former Participant is married,
any Beneficiary designation, other than a designation of his spouse as
Beneficiary, shall be effective only if his spouse consents in writing thereto
and such consent acknowledges the effect of such action and is witnessed by a
Plan representative or a notary public, unless a Plan representative finds that
such consent cannot be obtained because the spouse cannot be located or because
of other circumstances set forth in Section 401(a)(11) of the Code and
regulations issued thereunder.

                                     - 24 -
<PAGE>
                                  ARTICLE VIII

                              WITHDRAWALS AND LOANS

            8.1   WITHDRAWALS GENERALLY

                  A Participant may request a withdrawal of all or a portion of
his Individual Account without a termination of employment with his Employer,
but only in such amounts and under such conditions as specified in this Article
VIII. Withdrawals under Sections 8.2 and 8.3 shall be made from the Investment
Fund or Funds in which the subaccount or subaccounts of the Participant's
Individual Account are invested.

            8.2   WITHDRAWAL OF AFTER-TAX CONTRIBUTIONS, ROLLOVER CONTRIBUTIONS,
                  PRE-TAX CONTRIBUTIONS, CATCH-UP PRE-TAX CONTRIBUTIONS AND
                  MATCHING CONTRIBUTIONS

                  Upon proper application of a Participant in the form and
manner as the Committee may specify, the Participant shall be permitted to make
the following withdrawal from his Individual Account. He may withdraw, not more
than once in a six-month period, a portion or all of the Current Balance of his
After-Tax Contribution Account and his Rollover Account. A withdrawal shall be
made first from a Participant's After-Tax Contribution Account. If such
Participant's Current Balance in his After-Tax Contribution Account is fully
withdrawn, the withdrawal shall then be made from his Rollover Account. After
attainment of age 59-1/2, a Participant shall be permitted, not more often than
once in a six-month period and provided he has already withdrawn the entire
Current Balance of his After-Tax Contribution Account and his Rollover Account,
to withdraw a portion or all of the Current Balance of his Pre-Tax Contribution
Account and his Catch-up Pre-Tax Contribution Account. If such a Participant
withdraws all of his Pre-Tax Contribution and Catch-up Pre-Tax Contribution
Accounts, he shall then be permitted, not more than once in a six-month period,
to withdraw a portion or all of the vested Current Balance of his Matching
Contribution Account. A withdrawal under this Section 8.2 shall not be less than
the lesser of $500.00 or the balance in the applicable account.

            8.3   SPECIAL HARDSHIP WITHDRAWALS

                  Upon proper application of a Participant in such form and
manner as the Committee may specify, and to the extent consistent with
applicable law, the Committee, in its sole discretion may permit the Participant
to withdraw a portion or all of the balance of his Pre-Tax Contribution and
Catch-up Pre-Tax Contribution Accounts, if the Participant has already withdrawn
the entire balances of his After-Tax Contribution Account and Rollover Account
in accordance with Section 8.2 and if the reason for such withdrawal is to
enable the Participant to meet unusual or special situations in his financial
affairs resulting in immediate and heavy financial needs which meet the
requirements of Section 401(k) of the Code and regulations thereunder. Any
withdrawal hereunder may not exceed the amount required to meet the immediate
financial need and may only be made if such amount is not available from other
resources of the Participant. In no event shall such withdrawals exceed, in the
aggregate, the Participant's cumulative Pre-Tax Contributions and Catch-up
Pre-Tax Contributions to the Plan; the earnings on such Pre-Tax Contributions
and Catch-up Pre-Tax Contributions as well as Matching Contributions made with
respect to such Pre-Tax Contributions shall not be withdrawable prior to the
Participant's death, disability or Termination of Employment. The unusual or
special situations for which such a withdrawal may be made shall be limited to:

                                     - 25 -
<PAGE>
                  (a)   the payment of uninsured expenses incurred or necessary
                        for medical care, described in Section 213(d) of the
                        Code, of the Participant, or the Participant's spouse or
                        dependents;

                  (b)   the purchase (excluding mortgage expenses) of a
                        principal residence for the Participant;

                  (c)   the payment of tuition and related educational fees for
                        the next 12 months of post-secondary education for the
                        Participant, or the Participant's spouse, children or
                        dependents;

                  (d)   the prevention of the eviction of the Participant from,
                        or a foreclosure on the mortgage of, the Participant's
                        principal residence; or

                  (e)   the payment of an expense which the Committee considers
                        to constitute an immediate and heavy financial need that
                        cannot be met from other sources.

In granting or refusing any request for withdrawal, the Committee shall apply
uniform standards consistently and such discretionary power shall not be applied
so as to discriminate in favor of officers, stockholders, or highly compensated
Participants. In the event that a Participant withdraws any portion of his
Pre-Tax Contribution Account or Catch--up Pre-Tax Contribution Account under
circumstances which satisfy the hardship withdrawal requirements of Section
401(k) of the Code, he shall not be able to make Pre-Tax Contributions or
Catch-up Pre-Tax Contributions for 12 months (six months on and after January 1,
2002, regardless of the date of such hardship withdrawal) from the date of such
withdrawal and he may not make Pre-Tax Contributions or Catch-up Pre-Tax
Contributions to the Plan or make tax deferred contributions to any other
qualified plan maintained by the Company or an Affiliate for his next taxable
year immediately following the taxable year of the hardship distribution in
excess of the applicable limit under Section 402(g) of the Code for such taxable
year less the amount of such Participant's Pre-Tax Contributions and Catch-up
Pre-Tax Contributions for the taxable year of the hardship distribution.
Withdrawals made pursuant to this Section 8.3 shall be made so that any
distribution will first reduce a Participant's Pre-Tax Contribution Account and
then his Catch-up Pre-Tax Contribution Account.

            8.4   PARTICIPANT LOANS

                  Upon proper application of a Participant in such form and
manner as the Committee may specify, the Committee, in its sole discretion, may
direct the Trustee to make a loan to the Participant. The application, and the
resulting loan, must meet the terms and conditions specified in the following
provisions of this Section 8.4 as well as procedures established by the Company
or the Committee.

                  (a)   A loan shall not be made that exceeds the lesser of
                        $50,000 (reduced by the amount, if any, of his highest
                        outstanding loan balance in the immediately preceding 12
                        months) or 50 percent of the vested balance of the
                        Participant's Individual Account. Notwithstanding the
                        foregoing, in no event shall a loan exceed the aggregate
                        Current Balance of a Participant's Pre-Tax Contribution
                        Account, After-Tax Contribution Account, and Rollover
                        Account.

                  (b)   Notwithstanding the foregoing paragraph (b), any loan
                        must be for an amount of at least $500.00.

                                     - 26 -
<PAGE>
                  (c)   The rate of interest applicable to a loan shall be
                        reasonable and determined in accordance with procedures
                        established by the Committee in compliance with 29
                        C.F.R. 2550.408b-1.

                  (d)   Principal and interest shall be payable in equal
                        periodic installments (as prescribed by the Committee)
                        over such term as the Committee may prescribe; provided,
                        however, that, except in the case of a loan used to
                        acquire the principal residence of the Participant, the
                        term of the loan may not exceed five years.

                  (e)   The entire unpaid principal and interest may be declared
                        due and payable in full, at the option of the Committee,
                        if the borrower shall be in default for more than 30
                        days under any of the terms of the loan.

                  (f)   A Participant may only have two outstanding loans at any
                        time.

                  (g)   Such other terms and conditions, including assessment of
                        costs, as the Committee may prescribe and that are not
                        inconsistent with the terms of the Plan shall be
                        applicable.

                                     - 27 -
<PAGE>
                                   ARTICLE IX

                                     FUNDING

            9.1   CONTRIBUTIONS

                  Contributions by the Employer and by the Participants as
provided for in Article III shall be paid over to the Trustee. All contributions
made by the Employer shall be irrevocable, except as herein provided, and may be
used only for the exclusive benefit of the Participants, former Participants and
their Beneficiaries.

            9.2   TRUSTEE

                  The Company has entered into an agreement with the Trustee
whereunder the Trustee will receive, invest and administer contributions made
under the Plan in accordance with the Trust Agreement. Such Trust Agreement is
incorporated by reference as a part of the Plan, and the rights of all persons
hereunder are subject to the terms of the Trust Agreement. The Trust Agreement
specifically provides, among other things, for the investment and reinvestment
of the Trust Fund and the income thereof, the management of the Trust Fund, the
responsibilities and immunities of the Trustee, removal of the Trustee and
appointment of a successor, accounting by the Trustee, and the disbursement of
the Trust Fund.

                                     - 28 -
<PAGE>
                                    ARTICLE X

                                   FIDUCIARIES

            10.1  COMPANY

                  The Company established and maintains the Plan for the benefit
of its Employees and of necessity retains control of the operation and
administration of the Plan. The Employer, in accordance with specific provisions
of the Plan, has as herein indicated, delegated certain of these rights and
obligations to the Company, the Trustee and the Committee and these parties
shall be solely responsible for these, and only these, delegated rights and
obligations. The Employer shall supply such full and timely information for all
matters relating to the Plan as the Committee and the Trustee may require for
the effective discharge of their respective duties.

            10.2  TRUSTEE

                  The Trustee shall be the custodian of the assets of the Trust
and shall have such other duties and responsibilities as are specifically
provided in the Trust Agreement.

            10.3  SAVINGS AND STOCK OWNERSHIP PLAN COMMITTEE

                  The Company shall appoint a committee of not less than three
persons to be known as the Savings and Stock Ownership Plan Committee for the
purpose of administering the Plan. No compensation shall be paid to the members
of the Committee from the Fund for service on the Committee. Any action of the
Committee shall be determined by the vote of a majority of its members. The
Committee shall hold meetings upon such notice, at such place or places and at
such time or times as the Committee may from time to time determine. A majority
of the members of the Committee at the time in office shall constitute a quorum
for the transaction of business.

                  The Committee shall have all powers necessary to enable it to
properly carry out its duties to administer the Plan. However, the Committee
shall have no power in any way to modify, alter, add to or subtract from, any
provisions of the Plan. The Committee shall have power to construe the Plan and
to determine all questions that may arise hereunder relating to (a) the
eligibility of individuals to participate in the Plan, and (b) the amount of
benefits to which any Participant, former Participant, or Beneficiary may become
entitled hereunder. All determinations and actions of the Committee shall be
made on a uniform, equitable, and nondiscriminatory basis and shall be binding
upon the Company, Participants, and the Trustee.

                  The Committee may employ such counsel, accountants, and other
agents as it shall deem advisable. The Company shall cause to be paid from the
Fund (unless the Company in its discretion, elects to so pay) the compensation
of such counsel, accountants, and other agents and any other expenses incurred
in the administration of the Plan and Trust.

            10.4  CLAIMS PROCEDURES

                  Upon receipt of an application for benefits which is denied,
the Committee, shall determine all facts which are necessary to establish the
right of an applicant to benefits under the provisions of the Plan and the
amount thereof as herein provided. Upon request, the Committee will afford the
applicant the right of a hearing with respect to any finding of fact or
determination. The applicant shall be notified in writing of any adverse
decision with respect to his claim within 90 days after its submission. The
notice shall be written in a manner calculated to be understood by the applicant
and shall include:

                                     - 29 -
<PAGE>
                  (a)   The specific reason or reasons for the denial;

                  (b)   Specific references to the pertinent Plan provisions on
                        which the denial is based;

                  (c)   A description of any additional material or information
                        necessary for the applicant to perfect the claim and an
                        explanation why such materials or information is
                        necessary; and

                  (d)   An explanation of the Plan's claim review procedures.

                  If special circumstances require an extension of time for
processing the initial claim, a written notice of the extension and the reason
therefor shall be furnished to the claimant before the end of the initial 90 day
period. In no event shall such extension exceed 90 days.

                  In the event a claim for benefits is denied or if the
applicant has had no response to such claim within 90 days of its submission (in
which case the claim for benefits shall be deemed to have been denied), the
applicant or his duly authorized representative, at the applicant's sole
expense, may appeal the denial to the Committee within the earlier of 60 days of
the receipt of written notice of denial or 60 days from the date such claim is
deemed to be denied. In pursuing such appeal the applicant or his duly
authorized representative:

                  (a)   may request in writing that the Committee review the
                        denial;

                  (b)   may review pertinent documents; and

                  (c)   may submit issues and comments in writing.

                  The decision on review shall be made within 60 days of receipt
of the request for review, unless special circumstances require an extension of
time for processing, in which case a decision shall be rendered as soon as
possible, but not later than 120 days after receipt of a request for review. If
such an extension of time is required, written notice of the extension shall be
furnished to the claimant before the end of the original 60 day period. The
decision on review shall be made in writing, shall be written in a manner
calculated to be understood by the claimant, and shall include specific
references to the provisions of the Plan on which such denial is based. If the
decision on review is not furnished within the time specified above, the claim
shall be deemed denied on review.

                                     - 30 -
<PAGE>
                                   ARTICLE XI

                                      ESOP

            11.1  PURPOSE

                  The Company Stock Fund is the portion of the Plan which
constitutes the Ferro ESOP and which is an employee stock ownership plan under
Section 4975(e)(7) of the Code and Section 407(a)(6) of ERISA that invests
primarily in Company Stock. The Ferro ESOP is maintained to enable Participants
to share in the growth and prosperity of the Company and to provide such
Participants with an additional opportunity to accumulate capital for their
future economic security.

            11.2  SUSPENSE FUND

                  The Trustee shall establish a subfund, herein referred to as
the Suspense Fund, to hold and administer any Company Stock which is pledged as
collateral for any Exempt Loan made to the Trustee for purposes of the Ferro
ESOP. In the event more than one class of Company Stock is held in the Suspense
Fund, any release thereof shall be made on a pro rata basis as shall allocations
thereof to the Individual Accounts of Participants.

            11.3  EXEMPT LOANS

                  The Trustee may finance or refinance the acquisition of
Company Stock for purposes of the Ferro ESOP through an Exempt Loan or Loans. An
installment obligation incurred in connection with the purchase of Company Stock
shall constitute an Exempt Loan and shall be for a specific term, bear a
reasonable rate of interest, and shall not be payable on demand except in the
event of default. An Exempt Loan may be secured by a collateral pledge of the
shares of Company Stock so acquired. Any such pledged Company Stock shall be
placed in the Suspense Fund. No other Plan assets may be pledged as collateral
for a Loan, and no lender shall have recourse against the Plan other than the
Company Stock subject to pledge. All Exempt Loans which are made or guaranteed
by a disqualified person must satisfy all requirements applicable to exempt
loans set forth in Treas. Reg. Section 54.4975-7(b)(8) and Department of Labor
Reg. Section 2550.408b-3. Any pledge of Company Stock must provide for the
release of shares so pledged on a pro rata basis as the Exempt Loan is repaid by
the Trustee and such shares of Company Stock are allocated to Participant's
Individual Accounts as provided in the Plan. Repayments of principal and
interest on any Exempt Loan shall be made by the Trustee only from Matching
Contributions to enable the Trustee to repay such Exempt Loan, from earnings
attributable to such Matching Contributions, from any cash dividends received by
the Trustee on Company Stock held in the Suspense Fund, and from Pre-Tax
Contributions applied to an Exempt Loan pursuant to Section 4.2.

            11.4  LIMITATION ON ALLOCATIONS OF MATCHING EMPLOYER CONTRIBUTIONS

                  Notwithstanding any other provision of the Plan to the
contrary, Company Stock released from the Suspense Fund as the result of
payments with respect to an Exempt Loan shall be allocated to the accounts of
Participants pursuant to Section 11.5 within the Plan Year for which such
payments are made by the Trustee. As of each Contribution Date, Company Stock
which is released from the Suspense Fund shall be allocated to the accounts of
each eligible Participant only as needed to provide Matching Contributions
pursuant to Sections 3.3 and 5.2 as well as Pre-Tax Contributions applied to an
Exempt Loan pursuant to Sections 3.1 and 4.2. The number of shares of Company
Stock to be released from the Suspense Fund for allocation to accounts shall be
calculated either under the principal and interest method or the principal only
method in accordance with Treas. Reg. 54.4975-7(b)(8). Under the principal and
interest method,

                                     - 31 -
<PAGE>
for each Plan Year during the duration of the loan, the number of securities
released must equal the number of encumbered securities held immediately before
release for the current Plan Year multiplied by a fraction, numerator of which
is the amount of principal and interest paid for the year and denominator of
which is the sum of the numerator plus the principal and interest to be paid for
all future years. In the event if the interest rate under the Exempt Loan is
variable, the interest to be paid in future years must be computed by using the
interest rate applicable as of the end of the Plan Year and if the Company Stock
in the Suspense Fund includes more than one class of securities, the number of
securities of each class to be released for a Plan Year must be determined by
applying the same fraction to each class. Under the principal only method, the
release is determined with reference to principal payments only and (i) the loan
must provide for annual payments of principal and interest at a cumulative rate
that is not less rapid at any time than level annual payments of such amounts
for ten years; (ii) the interest included in any payment is disregarded only to
the extent that it would be determined to be interest under standard loan
amortization tables; and (iii) such method is not applicable from the time that,
by reason of a renewal, extension, or refinancing, the sum of the expired
duration of an Exempt Loan, the renewal period, the extension period, and the
duration of a new Exempt Loan exceeds ten years. Principal and interest payable
under an Exempt Loan shall be satisfied out of (i) earnings attributable to
Company Stock purchased with the proceeds of the Exempt Loan whether or not held
in a Suspense Fund (unless otherwise directed by the Company); (ii) earnings
attributable to the investment of Matching Contributions and Pre-Tax
Contributions in convertible preferred shares of Company Stock (unless otherwise
directed by the Company); (iii) Matching Contributions (other than contributions
of Company Stock) that are made to the Ferro ESOP for purposes of being applied
by the Trustee to satisfy its obligations under an Exempt Loan; (iv) Pre-Tax
Contributions made to the Ferro ESOP; and (v) proceeds of another Exempt Loan;
provided, however, that the payments made under an Exempt Loan by the Trustee
during any Plan Year shall not exceed an amount equal to the sum of such
contributions and earnings received during the Plan Year and prior Plan Years
minus payments made under the Exempt Loan in such Plan Years. Matching
Contributions as well as earnings that may be used by the Trustee to make
payments under an Exempt Loan shall be accounted for separately in the books and
records until the Exempt Loan is repaid in full and such information as is
necessary to maintain such records shall be provided to the Trustee by the
Company. Notwithstanding any provision contained herein to the contrary, all
Matching Contributions (except contributions of Company Stock) and Pre-Tax
Contributions made hereunder during the term of an Exempt Loan shall be deemed
to be made for purposes of being used (after earnings described above in clauses
(i) and (ii) are first used) by the Trustee to satisfy its obligations under the
Exempt Loan, unless the Company directs otherwise. Furthermore, all payments
made by the Trustee under the Exempt Loan shall be first charged against
Matching Contributions available for making such payments and then from Pre-Tax
Contributions.

            11.5  ALLOCATIONS OF COMPANY STOCK

                  Matching Contributions allocated and credited to each
Participant's Individual Account in the form of Company Stock released from the
Suspense Fund shall be allocated to such account on the basis of the fair market
value as adjusted of such Company Stock at the time it was acquired by the
Trustee. In the event that dividends on Company Stock held in such Participants'
Individual Accounts shall be used to make payments of principal and/or interest
on an Exempt Loan pursuant to the provisions of Sections 11.3 and 11.6, Company
Stock released from the Suspense Fund as a result thereof shall be allocated to
such Participants' Individual Account in such a manner that the aggregate fair
market value of the Company Stock so allocated is not less than the amount of
the dividends that would have otherwise been allocated to such account. In the
event the amount of Matching Contributions for any quarter or pay period, as the
case may be, is greater than the amount required to satisfy payments under all
outstanding Exempt Loans for such quarter, subject to the terms of Sections 4.2
and 4.3, the amount of remaining Matching Contributions shall be used to
purchase Company Stock (which shall have a fair market value as of the
applicable Contribution Date equal to the total of such remaining Matching
Contributions) in the market or used to prepay

                                     - 32 -
<PAGE>
part or all of the Exempt Loan, as directed by the Company. Such Company Stock
shall then be allocated for purposes of Sections 3.4, 5.1 and 5.2 to
Participants' Individual Accounts by multiplying the fair market value of shares
of Company Stock purchased for any quarter by a fraction the numerator of which
is the Participant's allocated portion of Matching Contributions for such
quarter or pay period, as the case maybe, or which is invested in Company Stock
and denominator of which is the aggregate of all Participants' allocated
portions of Matching Contributions for such quarter or pay period, as the case
maybe.

            11.6  ESOP DIVERSIFICATION RIGHTS

                  The Committee shall establish a procedure pursuant to which
during the initial Election Period (as defined below) each Participant who has
attained age 55 and who has at least completed ten years of participation in the
Ferro ESOP may direct the investment of up to 25 percent of the Company Stock
credited to his Individual Account and acquired with the proceeds of an Exempt
Loan or with Matching Contributions into other Investment Funds in accordance
with the provisions of Section 4.4. The amount of Company Stock with respect to
which such a Participant may redirect the investment thereof during any Election
Period subsequent to the initial Election Period shall be determined as of the
date of such election and shall equal the value of the Company Stock credited to
his Individual Account and acquired with the proceeds of an Exempt Loan as well
as Matching Contributions plus the value of the Company Stock previously
transferred to other Investment Funds pursuant to this Section 11.6 multiplied
by 25 percent, or 50 percent with respect to the Participant's final Election
Period. For purposes hereof, the Election Period shall be the 90-day period
immediately following the end of (i) the Plan Year in which a Participant
attains age 55 and completes at least ten years of participation in the Ferro
ESOP, and (ii) each of the five succeeding Plan Years.

            11.7  REINVESTMENT OF DIVIDENDS ON COMPANY STOCK

                  Except as specified herein, all cash dividends received by the
Trustee with respect to common shares of Company Stock shall be reinvested in
common shares of Company Stock in accordance with the directions of the
Committee and allocated in accordance with the provisions of Section 5.3 and all
cash dividends received by the Trustee with respect to convertible preferred
shares of Company Stock shall be reinvested in Company Stock to the extent such
investment would result in the allocation of Company Stock from the Suspense
Fund as set forth in Section 11.5; thereafter, such dividends shall be
reinvested in common shares of Company Stock pursuant to the provisions of
Section 5.3. Notwithstanding any other provision of the Plan to the contrary,
any cash dividends paid with respect to Company Stock held in the Ferro ESOP
allocated to a Participant's Individual Account may be, as determined in
accordance with procedures adopted by the Company, (i) paid to such Participant
in a manner determined by the Company, (ii) paid to the Trustee for reinvestment
in Company Stock, at the election of each such Participant (which shall become
irrevocable pursuant to such Company procedures for the fiscal years of the
Company beginning after December 31, 2001) Plan Years beginning on or after
January 1, 2001, or (iii) retained by the Trustee, in accordance with the
provisions of Section 404(k)(2) of the Code.

            11.8  RESTRICTIONS ON COMPANY STOCK

                  No Company Stock shall be subject to a put, call, or other
option, or any buy-sell arrangement while held by and when distributed from the
Plan, whether or not such plan is an employee stock ownership plan at such time.

                                     - 33 -
<PAGE>
                                   ARTICLE XII

                      AMENDMENT AND TERMINATION OF THE PLAN

            12.1  AMENDMENT OF THE PLAN

                  The Company shall have the right at any time to modify, alter
or amend the Plan in whole or in part; provided, however, that the duties,
powers and liabilities of the Trustee hereunder shall not be increased without
its written consent; and provided, further, that the amount of benefits which,
at the time of any such modification, alteration or amendment, shall appear as a
credit in the Individual Account of any Participant, former Participant or
Beneficiary hereunder shall not be adversely affected thereby; and provided,
further, that no such amendment shall have the effect of revesting in the
Employer any part of the principal or income of the Fund.

            12.2  TERMINATION OF THE PLAN

                  The Company expects to continue the Plan indefinitely, but
continuance is not assumed as a contractual obligation and each Employer
reserves the right at any time by action of its board of directors to terminate
the Plan as applicable to itself. In the event of full or partial termination of
the Plan or complete discontinuance of contributions to the Plan, all accounts
comprising the Individual Accounts of affected Participants shall be deemed to
be fully vested, and the Committee shall value the Fund as of the date of
termination. That portion of the Fund applicable to any Employer for which the
Plan has not been terminated shall be unaffected. The Individual Accounts of the
Participants, former Participants and Beneficiaries affected by the termination,
as determined by the Committee, shall be distributed in a lump sum to such
Participants, former Participants or Beneficiaries.

            12.3  RETURN OF CONTRIBUTIONS

                  It is intended that the Plan shall be approved and qualified
by the Internal Revenue Service as meeting the requirements of the Code and
regulations thereunder with respect to tax-qualified and exempt plans and trusts
(1) so as to permit each Employer to deduct for federal income tax purposes the
amounts of its contributions to the Trust; (2) so that contributions so made and
the income of the Fund will not be taxable to Participants as income until
received; and (3) so that the income of the Trust Fund shall be exempt from
federal income tax. In the event the Commissioner of Internal Revenue or his
delegate rules that the deduction for all or a part of any Employer Contribution
is not allowed, each Employer reserves the right to recover that portion or all
of its contribution for which no deduction is allowed, provided such recovery is
made within one year of the disallowance.

                                     - 34 -
<PAGE>
                                  ARTICLE XIII

                PROVISIONS RELATIVE TO EMPLOYERS INCLUDED IN PLAN

            13.1  METHOD OF PARTICIPATION

                  Any Affiliate or foreign corporation with respect to which the
Company or an Affiliate has entered into an agreement under Section 3121(l) of
the Code with the approval of the Board, may become a party to the Plan, by
adopting the Plan as a savings and thrift plan for its Employees. Any
corporation which becomes a party to the Plan shall thereafter promptly deliver
to the Trustee a certified copy of the resolutions or other documents evidencing
its adoption of the plan and also a written instrument showing the Board's
approval of such corporation's becoming a party to the Plan, with any variations
agreed to by the Board.

            13.2  WITHDRAWAL

                  Any one or more of the Employers included in the Plan may
withdraw from the Plan at any time by giving 30 days advance notice in writing
of its or their intention to withdraw to the Board and the Committee (unless a
shorter notice shall be agreed to by the Board).

                  Upon receipt of notice of any such withdrawal, the Committee
shall certify to the Trustee the equitable share of such withdrawing Employer in
the Fund, as applicable, to be determined by the Committee. The Trustee shall
thereupon set aside from the fund then held by it such securities and other
property as it shall, in its sole discretion, deem to be equal in value to such
equitable share. If the Plan is to be terminated with respect to such Employer,
the amount set aside shall be dealt with in accordance with the provisions of
Section 12.2. If the Plan is not to be terminated with respect to such Employer
the Committee shall have the option to direct the Trustee to effect distribution
in accordance with the provisions of Section 12.2 or to direct the Trustee to
turn over such amount to such trustee as may be designated by such withdrawing
Employer, and such securities and other property shall thereafter be held and
invested as a separate trust, and shall be used and applied according to the
terms of the new agreement and declaration of trust between the Employer so
withdrawing and the trustee so designated.

                  Neither the segregation of the Fund assets upon the withdrawal
of an Employer, nor the execution of a new agreement and declaration of trust
pursuant to any of the provisions of this Section 13.2, shall operate to permit
any part of the corpus or income of the Fund to be used for or diverted to
purposes other than for the exclusive benefit of Participants, former
Participants and Beneficiaries.

                                     - 35 -
<PAGE>
                                   ARTICLE XIV

                                  MISCELLANEOUS

            14.1  GOVERNING LAW

                  The Plan shall be construed, regulated and administered
according to the laws of the State of Ohio, except in those areas preempted by
the laws of the United States of America.

            14.2  ADMINISTRATION EXPENSES

                  Each Investment Fund shall be charged with the administrative
expenses, investment transfer fees, brokerage fees, transfer taxes and other
expenses incurred in connection with the sale, purchase and management of the
assets held in such Investment Fund. The fees of the Trustee and all other
administrative expenses of the Plan and Trust shall be paid by the Trustee from
the assets of the Fund unless the Company, in its discretion, elects to pay any
such fees and/or expenses.

            14.3  PARTICIPANT'S RIGHTS

                  No Participant in the Plan shall acquire any right to be
retained in the Employer's employ by virtue of the Plan, nor, upon his
dismissal, or upon his voluntary termination of employment, shall he have any
right to interest in and to the Fund other than as specifically provided herein.
The Employer shall not be liable for the payment of any benefit provided for
herein; all benefits hereunder shall be payable only from the Fund.

            14.4  SPENDTHRIFT CLAUSE

                  No right or interest of any kind under the Plan shall be
subject in any manner to alienation, sale, transfer, assignment, pledge or
encumbrance of any kind, nor shall any such right or interest be subject in any
manner to the debts or liabilities of such Participant or Beneficiary. If by
reason of any attempt by a Participant or Beneficiary to alienate, sell,
transfer, assign, pledge, encumber or otherwise dispose of any right or interest
under the Plan, or if by reason of bankruptcy or insolvency or because of any
attachment, garnishment or other proceedings, or any order, finding or judgment
of any court, either in law or in equity, prior to the actual transfer and
delivery of such right or interest to such Participant or Beneficiary, such
right or interest except for this provision would be payable to, or enjoyed by
some person, firm or corporation other than such Participant or Beneficiary,
then any such right or interest shall cease and thereafter the Trustee, upon the
direction of the Committee, shall from time to time as and when payments would
otherwise (except for this provision) become due and payable to such Participant
or Beneficiary, pay or deliver to or expend for the use and benefit of such
Participant or Beneficiary or to or for the use of any person dependent upon
such Participant for support from any amount which would have been payable or
distributable to such Participant or Beneficiary, except for this provision,
such sums as the Committee in its discretion may deem necessary or advisable for
his support or for the support of anyone dependent upon him. At the time when,
except for this provision, final payment would be required to be made to such
Participant or Beneficiary, there shall be paid to such Participant or
Beneficiary only so much of the balance remaining to his credit under the Plan
as the Committee, in the exercise of its sole discretion, may direct, and the
remainder thereof, if any, shall be paid over and delivered to his spouse, if
any, or if none, to his children, if any, in equal shares; and if there be no
spouse or children of such Participant or Beneficiary in existence at such time,
the Trustee shall pay and deliver any portion of such remaining balance which is
not paid to such Participant or Beneficiary to the person or persons who would
be entitled under the statutes of descent and

                                     - 36 -
<PAGE>
distribution of the jurisdiction in which such Participant or Beneficiary is
then domiciled, to inherit any property with respect to which such Participant
or Beneficiary should die intestate at such time.

            14.5  MERGER, CONSOLIDATION OR TRANSFER

                  In the event of the merger or consolidation of the Plan with
another plan or transfer of assets or liabilities from the Plan to another plan,
no Participant, former Participant or Beneficiary shall, as a result of such
event, be entitled on the day following such merger, consolidation or transfer
under the termination of the Plan provisions to a lesser benefit than the
benefit to which he was entitled on the date prior to the merger, consolidation
or transfer if the Plan had then terminated.

            14.6  QUALIFIED DOMESTIC RELATIONS ORDER

                  The Committee shall establish reasonable procedures to
determine the status of domestic relations orders and to administer
distributions under domestic relations orders which are deemed to be qualified
under Section 414(p) of the Code.

                  (a)   To the extent that benefits would otherwise be payable
                        under the Plan, the Plan shall pay to any spouse, child,
                        former spouse, or other dependent of the Participant
                        ("Alternate Payee") such benefits as are set forth in
                        court orders which are issued pursuant to state domestic
                        relations laws or community property laws and which
                        orders make provision for child support, alimony
                        payments, or marital property rights of such Alternate
                        Payee and which also contain the necessary factual and
                        other recitations to constitute a "qualified domestic
                        relations order," within the meaning of the Code. Any
                        such order is referred to herein as a "Qualified
                        Domestic Relations Order."

                  (b)   No such Qualified Domestic Relations Order may require
                        the Plan to pay to any such Alternate Payee a different
                        type or form of benefit or any option not expressly
                        provided for herein, to pay increased benefits (whether
                        or not they are determined actuarially), to provide
                        benefits under the Top-Heavy Provisions hereof with
                        respect to all or any portion of the Participant's
                        beneficial interest hereunder to any Alternate Payees
                        under any such Qualified Domestic Relations Order and
                        the same benefits with respect to the same portion of
                        the Participant's beneficial interest to that
                        Participant's subsequent spouses, or to distribute any
                        portion of a Participant's beneficial interest to any
                        Alternate Payee under any such award which was
                        previously awarded to another Alternate Payee. No such
                        order will require the Plan to pay a portion of the
                        Participant's beneficial interest to an Alternate Payee
                        which a preexisting Qualified Domestic Relations Order
                        requires be paid to another Alternate Payee. The
                        Committee may but need not ignore any Qualified Domestic
                        Relations Order containing any of the provisions
                        described in this Section.

                  (c)   Payments to an Alternate Payee pursuant to a Qualified
                        Domestic Relations Order may commence on any date
                        specified in such Qualified Domestic Relations order,
                        irrespective of the retirement of the Participant or the
                        occurrence of the earliest retirement date. For purposes
                        of this Section, "earliest retirement date" means a date
                        which is ten years prior to the Participant's normal
                        retirement age.

                                     - 37 -
<PAGE>
            14.7  ADDENDA

                  In the event that it is deemed necessary to accommodate any
transition of coverage under other benefit plans to coverage under the Plan with
respect to certain groups of Employees, an Addendum setting forth special
overriding provisions applicable to such Employees may be added to the Plan. Any
such Addendum shall for all purposes constitute part of the Plan and, in the
event of conflict with any other provision of the Plan, shall control.

            14.8  PROVISIONS WITH RESPECT TO UNIFORMED SERVICES EMPLOYMENT AND
                  REEMPLOYMENT RIGHTS ACT OF 1994

                  Notwithstanding any provision of the Plan to the contrary,
effective as of December 12, 1994, contributions, benefits and service credit
with respect to qualified military service shall be provided in accordance with
Section 414(u) of the Code and loan repayments will be suspended under the Plan
as permitted by Section 414(u) of the Code.

            14.9  RETURN OF CONTRIBUTIONS TO EMPLOYER

                  Notwithstanding any other provision of the Plan to the
contrary, Pre-Tax and Matching Contributions are contingent upon the
deductibility of such contributions under Section 404 of the Code. In the event
a Pre-Tax, After-Tax or Matching Contribution (or any portion thereof) is made
under a mistake of fact, such a contribution shall be returned to the Employer
within one year after the payment of the contribution. Since Pre-Tax and
Matching Contributions (or any portion thereof) are conditioned upon the
deductibility of the contribution under Section 404 of the Code as set forth
above, in the event that such deduction is disallowed, any such contribution
shall be returned to the Employer within one year after the disallowance of the
deduction.

            14.10 COUNTERPARTS

                  The Plan and the Trust Agreement may be executed in any number
of counterparts, each of which shall constitute but one and the same instrument
and may be sufficiently evidenced by any one counterpart.

            Executed at Cleveland, Ohio, this _____ day of ______________, 2002.

                                FERRO CORPORATION

                                By
                                   ---------------------------------------
                                   Title:

                                     - 38 -
<PAGE>
                                   APPENDIX A

                             NONDISCRIMINATION RULES

      1.01 COMPLIANCE WITH SECTIONS 401(k) AND 401(m) OF THE CODE.
Notwithstanding any other provision of the Plan to the contrary, the Committee
shall take such action as it deems appropriate to limit the amount of Elective
Contributions and After-Tax Contributions made on behalf of Highly Compensated
Employees for a Plan Year to the extent necessary to ensure that the actual
deferral percentage requirement under Section 401(k) of the Code and the actual
compensation percentage under Section 401(m) of the Code, respectively, are not
exceeded. The provisions of this Appendix A shall be interpreted, applied, and
to the extent necessary, deemed modified without formal amendment thereto so as
to satisfy solely the minimum requirements of Sections 401(k) and 401(m) of the
Code.

      1.02 401(k) AND 401(m) DEFINITIONS. In addition to the definitions set
forth in Section 1.1, the following definitions shall be applicable to this
Appendix A.

            (1) The term "ACP TEST" shall mean the special nondiscrimination
      test applicable to the Matching Contributions and any After-Tax
      Contributions of Highly Compensated Employees under Section 401(m) of the
      Code. The ACP Test for a Plan Year commencing on and after January 1,
      1997, shall be satisfied if:

                  (a) the ACP of Highly Compensated Employees does not exceed
            the ACP of the non-Highly Compensated Employees for the prior Plan
            Year multiplied by 1.25,

                                       or

                  (b) the ACP of Highly Compensated Employees does not exceed
            the ACP of the non-Highly Compensated Employees for the prior Plan
            Year multiplied by 2.0, provided that the ACP of Highly Compensated
            Employees cannot exceed the ACP of the non-Highly Compensated
            Employees for the prior Plan year by more than 2%.

            (2) The term "ACTUAL CONTRIBUTION PERCENTAGE" or "ACP" shall mean
      the average Actual Contribution Ratio (calculated to the nearest 1/100th
      of one percent) with respect to a Plan Year for a specific group of
      Participants.

            (3) The term "ACTUAL CONTRIBUTION RATIO" or "ACR" shall mean the
      percentage calculated by dividing (i) the sum of the Matching
      Contributions and any After-Tax Contributions for a Plan Year of a
      Participant who is an Employee by (ii) the Compensation of such
      Participant for such Plan Year. For purposes of determining the ACR of a
      Participant, the following rules shall be applicable:

                  (a) A Matching Contribution shall be taken into account for
            the Plan Year in which it is allocated to a Participant's Matching
            Contribution Account provided that it is actually paid to the Plan
            no later than the end of the 12-month period beginning after the
            close of such Plan Year and it is made on account of the
            Participant's Pre-Tax Contributions for such Plan Year.

                                      A-1
<PAGE>
                  (b) A qualified nonelective contribution (as defined in
            Section 401(m)(4)(C) of the Code) that is treated as an elective
            contribution shall not be used for purposes of calculating the ACR
            of a Participant.

                  (c) All Matching Contributions and any After-Tax Contributions
            of a Participant that are made under two or more plans that are
            aggregated for purposes of Section 401(a)(4) or 410(b) of the Code
            (other than Section 410(b)(12)(A)(ii)) shall be treated as made
            under a single plan. Notwithstanding the foregoing, a plan that
            benefits a unit of employment covered by a collective bargaining
            agreement shall be treated as comprising a separate plan.

            (4) The term "ACTUAL DEFERRAL PERCENTAGE" or "ADP" shall mean the
      average Actual Deferral Ratio (calculated to the nearest 1/100th of one
      percent) with respect to a Plan Year for a specific group of Participants.

            (5) The term "ACTUAL DEFERRAL RATIO" or "ADR" shall mean the
      percentage calculated by dividing (i) the Elective Contributions for a
      Plan Year of each Participant who is an Employee, by (ii) the Compensation
      of such Participant for such Plan Year. For purposes of determining ADR,
      the following rules shall be applicable:

                        (i) An Elective Contribution shall be taken into account
                  for a Plan Year only if it relates to Compensation that either
                  would have been received by the Participant in the Plan Year
                  (but for a deferral election) or is attributable to services
                  performed by the Participant in the Plan Year and would have
                  been received by the Participant within 2-1/2 months after the
                  close of the Plan Year (but for a deferral election).

                        (ii) An Elective Contribution shall be taken into
                  account for a Plan Year only if it is allocated to the
                  Participant as of a date within the Plan Year. An Elective
                  Contribution is considered allocated as of a date within a
                  Plan Year, if the allocation is not contingent on
                  participation or performance of services after such date and
                  the Elective Contribution is actually paid to the Trust no
                  later than 12 months after the Plan Year to which such
                  contribution relates.

                        (iii) The ADR of a Highly Compensated Employee shall be
                  determined by treating all cash or deferred arrangements under
                  which the Highly Compensated Employee is eligible (other than
                  those that may not be permissively aggregated as a single
                  arrangement) as made under a single arrangement. If the Highly
                  Compensated Employee participates in two or more cash or
                  deferred arrangements that have different Plan Years, all cash
                  or deferred arrangements ending with or within the same
                  calendar year shall be treated as a single arrangement.
                  However, allocations made to a collectively bargained plan and
                  made to a plan not collectively bargained shall be treated as
                  two separate arrangements and allocations made to an

                                      A-2
<PAGE>
                  ESOP and non-ESOP plan shall be treated as two separate
                  arrangements.

                        (iv) An Employee who would be a Participant but for the
                  failure to make required contributions for a Plan year, an
                  Employee who cannot make Pre-Tax Contributions because of a
                  distribution, and an Employee who cannot defer Pre-Tax
                  Contributions in a Plan Year because of the limitations on
                  annual additions under Section 415 of the Code shall have an
                  ADR of zero.

                        (v) All Elective Contributions that are made under two
                  or more plans which are aggregated for purposes of Section
                  401(a)(4) or 410(b) of the Code (other than Section
                  410(b)(12)(A)(ii)) shall be treated as made under a single
                  plan. If two or more plans are permissively aggregated for
                  purposes of Section 401(k) of the Code, the aggregated plans
                  must also satisfy Sections 401(a)(4) and 410(b) of the Code as
                  though they were a single plan. Notwithstanding the foregoing,
                  a plan that benefits a unit of employment covered by a
                  collective bargaining agreement shall be treated as comprising
                  a separate plan.

                        (vi) Any excess Pre-Tax Contributions distributed to any
                  Participant shall be included in the ADP Test.

            (6) The term "ADP TEST" shall mean the special nondiscrimination
      test applicable to the Pre-Tax Contributions of Highly Compensated
      Employees under Section 401(k) of the Code. The ADP Test for a Plan Year
      commencing on and after January 1, 1997, shall be satisfied if:

                        (i) the ADP of Highly Compensated Employees does not
                  exceed the ADP of the non-Highly Compensated Employees for the
                  prior Plan Year multiplied by 1.25,

                                       or

                        (ii) the ADP of Highly Compensated Employees does not
                  exceed the ADP of the non-Highly Compensated Employees for the
                  prior Plan Year multiplied by 2.0; provided, however, that the
                  ADP of Highly Compensated Employees does not exceed the ADP of
                  the non-Highly Compensated Employees for the prior Plan Year
                  by more than 2%.

            (7) The term "COMPENSATION" shall have the meaning set forth in
      Paragraph (14) of Section 1.2 of the Plan.

            (8) The term "ELECTIVE CONTRIBUTIONS" shall mean Pre-Tax
      Contributions and, at the election of the Company and subject to such
      conditions as may be prescribed by Treasury regulations, Matching
      Contributions that meet the requirements of Section 401(m)(4)(A) of the
      Code and any qualified nonelective contributions within the meaning of
      Section 401(m)(4)(C) of the Code.

                                      A-3
<PAGE>
            (9) The term "HIGHLY COMPENSATED EMPLOYEE" shall mean an Employee of
      an Affiliate for a Plan Year who is a "highly compensated employee" within
      the meaning of Section 414(q) of the Code and who:

                  (a) during the immediately preceding Plan Year, received
            compensation (as defined in Appendix A of the Plan without regard to
            Code Sections 125, 402(e)(3), and 402(h)(l)(B) in excess of $80,000
            (such dollar limitation shall be adjusted automatically in
            accordance with the maximum amount permitted under Section 414(q))
            of the Code; or

                  (b) during each Plan Year or during the immediately preceding
            Plan Year owned directly or indirectly 5% or more of an Affiliate
            (so that he is a "5% owner" as defined in Section 416(i)(l) of the
            Code; and

                  (c) was a Participant of the Top-Paid Group.

      A former Employee shall be treated as a Highly Compensated Employee if
      such Employee was a Highly Compensated Employee when such Employee
      separated from service or such Employee was a Highly Compensated Employee
      at any time after attaining age 55.

      Notwithstanding the foregoing, the sole purpose of this paragraph (9) is
      to define and apply the term Highly Compensated Employee strictly (and
      only) to the extent necessary to satisfy the minimum requirements of
      Section 414(q) of the Code relating to "highly compensated employees."
      This paragraph (9) shall be interpreted, applied and, if and to the extent
      necessary, deemed modified without formal amendments of language, so as to
      satisfy solely the minimum requirements of Section 414(q) of the Code.

            (10) The term "TOP-PAID GROUP" shall mean the group of Employees
      consisting of the top 20 percent of all Employees when ranked by
      Compensation paid during a Plan Year.

      1.03 LIMITATION ON ELECTIVE CONTRIBUTIONS. In the event that the ADP of
Highly Compensated Employees does not meet the ADP Test, the following steps
shall be taken by the Company.

            (a) The Company shall reduce or suspend all Pre-Tax Contributions of
      each Highly Compensated Employee for the remainder of the Plan Year in
      such amount as is required to meet the ADP Test. Any such reduction shall
      be made on and after January 1, 1997, by reducing uniformly the dollar
      amount of the Pre-Tax Contributions for those Highly Compensated Employees
      who elected the highest dollar amount of Pre-Tax Contributions until the
      ADP Test is met.

            (b) To the extent that the ADP Test is not met after the application
      of paragraph (a) above, the Company shall distribute from the Pre-Tax
      Contribution Account of each Participant who is a Highly Compensated
      Employee and who made Pre-Tax Contributions during the Plan Year to such
      Participant such amount (plus income allocable thereto) as is required for
      the ADP Test to be met; provided, however, that any previous distribution
      of Pre-Tax Contributions with respect to a Highly Compensated Employee for
      his taxable year ending with or within the Plan Year shall be deemed to
      have been a distribution of excess Pre-Tax Contributions for the purpose
      of this Section 1.03 (and will therefore reduce the amount distributable
      under this Section 1.03). Any such distribution on and after January 1,
      1997, shall

                                      A-4
<PAGE>
      be made first with the Pre-Tax Contributions of Highly Compensated
      Employees with the highest dollar amount so that no reduction is made to
      Pre-Tax Contributions of any Highly Compensated Employee as long as any
      other Highly Compensated Employee has a higher dollar amount of Pre-Tax
      Contributions. Any decrease in the Pre-Tax Contributions of a Highly
      Compensated Employee shall also be effective for purposes of determining
      Matching Contributions to be made under Section 3.3. Such amounts shall be
      distributed to all affected Highly Compensated Employees by no later than
      the March 15th following the Plan Year in which such contributions were
      made. If such Pre-Tax Contributions are distributed more than 2-1/2 months
      after the end of such Plan Year, an excise tax equal to ten percent of
      such excess Pre-Tax Contributions shall be imposed on the Company.
      Notwithstanding the foregoing, Pre-Tax Contributions shall be treated as
      Annual Additions for purposes of Appendix B to the Plan.

            (c) The amount of excess contributions to be distributed shall be
      reduced by excess deferrals previously distributed for the taxable year
      ending in the same Plan Year and excess deferrals to be distributed for a
      taxable year will be reduced by excess contributions previously
      distributed for the Plan Year beginning in such taxable year.

      1.04 LIMITATION ON SUPPLEMENTAL AND MATCHING CONTRIBUTIONS. In the event
that the ACP of Highly Compensated Employees does not meet the ACP Test, the
following steps shall be taken by the Company.

            (a) The Company shall reduce or suspend all After-Tax Contributions
      of each Highly Compensated Employee for the remainder of the Plan Year in
      such amount as is required to meet the ACP Test. Any such reduction shall
      be made on and after January 1, 1997, by reducing the dollar amount of the
      After-Tax Contributions for those Highly Compensated Employees who elected
      the highest dollar amount of After-Tax Contributions until the ACP Test is
      met.

            (b) To the extent that the ACP Test is not met after the application
      of paragraph (a) above, the Company shall distribute from the After-Tax
      Contribution Account of each Participant who is a Highly Compensated
      Employee and who made After-Tax Contributions during the Plan Year to such
      Participant such amount (plus income allocable thereto) as is required for
      the ACP Test to be met; provided, however, that any previous distribution
      of After-Tax Contributions with respect to a Highly Compensated Employee
      for his taxable year ending with or within the Plan Year shall be deemed
      to have been a distribution of excess After-Tax Contributions for the
      purpose of this Section 1.04 (and will therefore reduce the amount
      distributable under this Section 1.04). Any such distribution shall be
      made on and after January 1, 1997, first in the After-Tax Contributions of
      Highly Compensated Employees with the highest dollar amount, so that no
      reduction is made to After-Tax Contributions of any Highly Compensated
      Employee as long as any other Highly Compensated Employee has a higher
      dollar amount of After-Tax Contributions. Any decrease in the After-Tax
      Contributions of a Highly Compensated Employee shall also be effective for
      purposes of determining Matching Contributions to be made under Section
      3.3. Such amounts shall be distributed to all affected Highly Compensated
      Employees by no later than the March 15th following the Plan Year in which
      such contributions were made. If such After-Tax Contributions are
      distributed more than 2-1/2 months after the end of such Plan Year, an
      excise tax equal to ten percent of such excess After-Tax Contributions
      shall be imposed on the Employer. Notwithstanding the foregoing, After-Tax
      Contributions shall be treated as Annual Additions for purposes of
      Appendix B to the Plan.

                                      A-5
<PAGE>
      1.05 MULTIPLE USE TEST. Prior to Plan Years beginning before January 1,
2002, if the sum of the ADP and ACP for the Highly Compensated Employees exceeds
the aggregate limit under Treas. Reg. Section 1.401(m)-2(b)(3) and the ADP for
the Highly Compensated Employees is more than 125 percent of the ADP for the
non-Highly Compensated Employees and the ACP for the Highly Compensated
Employees is more than 125 percent of the ACP of the non-Highly Compensated
Employees, the ADP and ACP for the Highly Compensated Employees must also comply
with the requirements of Section 401(m)(9) of the Code regarding the Multiple
Use Limit, which require that the sum of these two percentages (as determined
after any corrections needed to meet the ADP Test or ACP Test have been made)
must not exceed the greater of:

                  (a)   the sum of

                        (1)   the larger of the ADP or ACP for the non-Highly
                              Compensated Employees multiplied by 1.25; and

                        (2)   the smaller of the ADP or ACP for the non-Highly
                              Compensated Employees multiplied by 2.0 if such
                              percentage of the non-Highly Compensated Employees
                              is less than 2%, or plus 2% if it is 2% or more;
                              or

                  (b)   the sum of

                        (1)   the lesser of the ADP or ACP for the non-Highly
                              Compensated Employees multiplied by 1.25; and

                        (2)   the greater of the ADP or ACP for the non-Highly
                              Compensated Employees multiplied by 2 if such
                              percentage of the non-Highly Compensated Employees
                              is less than 2%, or plus 2% if it is 2% or more.

If the Multiple Use Limit is exceeded, the Committee shall determine a maximum
percentage to be used in place of the calculated percentage for each Highly
Compensated Employees that would reduce uniformly the amount of contributions
(beginning with the highest dollar amount) in such a manner so that either or
both the ADP or ACP for the Highly Compensated Employees to meet the Multiple
Use Limit. Any excess shall be treated in the same manner that excess aggregate
contributions are treated. On and after January 1, 2002, the Multiple Use Test
described above and set forth in Treas. Reg. Section .1.401(m)-2 shall not be
applicable or effective with respect to the Plan.

      1.06 ADJUSTMENT FOR INVESTMENT GAIN OR LOSS. The net investment gain or
loss associated with any excess deferral or contribution amount under Section
1.03, 1.04, or 1.05 shall be distributed in the same manner as the excess
amount. Such gain or loss is calculated as follows:

                  E x    G     x (1 + (10% x M))
                      --------
                         (AB-G)

          where:

                  E  = the total excess Pre-Tax Contributions or Matching
                       Contributions and After-Tax Contributions

                  G  = the net gain or loss for the Plan Year from a Highly
                       Compensated Employee's affected Individual Account

                                      A-6
<PAGE>
                  AB = the total value of a Highly Compensated Employee's
                       affected Individual Account determined as of the end
                       of the Plan Year being corrected

                  M  = the number of full months from the Plan Year end to
                       the date excess amounts are paid, plus one for the
                       month during which payment is to be made if payment
                       will occur after the 15th day of the month.

      1.07 EXCESS ELECTIVE DEFERRALS. If a Participant who had Pre-Tax
Contributions made on his behalf for a Plan Year files with the Committee,
within the time limit prescribed by the Committee after the end of such Plan
Year, a written statement, on a form acceptable to the Committee, that he has
elective deferrals within the meaning of Section 402(g) of the Code for the
taxable year in excess of the dollar limitation on elective deferrals in effect
for such taxable year, and specifying the amount of such excess the Participant
claims as allocable to the Plan, the amount of such excess, adjusted for income
or loss attributable to such excess elective deferral, shall be distributed to
the Participant by April 15 of the year following the year of the excess
elective deferral and Matching Contributions thereon shall be forfeited.
Distributions pursuant to this Section 1.06 shall be made proportionately from
the subaccounts to which Pre-Tax Contributions were made for such Plan Year.

                                      A-7
<PAGE>
                                   APPENDIX B

                             SECTION 415 LIMITATIONS

      1.01 COMPLIANCE WITH SECTION 415. The provisions set forth in this
Appendix B are intended solely to comply with the requirements of Section 415 of
the Code, and shall be interpreted, applied, and if and to the extent necessary,
deemed modified without further formal language so as to satisfy solely the
minimum requirements of said Section. For such purpose, the limitations of
Section 415 of the Code are hereby incorporated by reference and made part
hereof as though fully set forth herein, but shall be applied only to particular
Plan benefits in accordance with the provisions of this Appendix B to the extent
such provisions are not consistent with said Section.

      1.02 SECTION 415 DEFINITIONS. The following definitions shall be
applicable to this Appendix B:

            (a)   The term "ANNUAL ADDITIONS" shall mean the amount defined in
                  Section 415(c)(2) of the Code.

            (b)   The term "ANNUAL BENEFIT" shall mean the benefit amount
                  defined in Section 415(b)(2)(A) of the Code as adjusted
                  pursuant to the provisions of Section 415(b)(2)(B), (C), (D),
                  and (E) of the Code.

            (c)   The term "COMPENSATION" shall mean compensation as defined in
                  Section 415(c)(3) of the Code. Notwithstanding the preceding
                  sentence, Compensation for a Participant in a profit-sharing
                  plan who is permanently and totally disabled (as defined in
                  Section 37(e)(3) of the Code) is the compensation such
                  Participant would have received for the Limitation Year if the
                  Participant had been paid at the rate of compensation paid
                  immediately before becoming permanently and totally disabled;
                  such imputed compensation for the disabled Participant may be
                  taken into account only if the Participant is not an officer,
                  an owner, or highly compensated, and contributions made on
                  behalf of such Participant are nonforfeitable when made.

            (d)   The term "DEFINED BENEFIT FRACTION" for any Limitation Year
                  beginning prior to January 1, 2000, shall mean the fraction
                  defined in Section 415(e)(2) of the Code.

            (e)   The term "DEFINED CONTRIBUTION FRACTION" for any Limitation
                  Year beginning prior to January 1, 2000, shall mean the
                  fraction defined in Section 415(e)(3) of the Code.

            (f)   The term "EMPLOYER" shall mean the Company and all Affiliates;
                  provided, however, that for purposes of applying the
                  limitations of Sections 1.03 and 1.04 with respect to
                  Limitation Years beginning after December 31, 1999, "50
                  percent" rather "80 percent" shall be

                                      B-1
<PAGE>
                  used in determining an Affiliated Corporation for purposes of
                  Section 414(b) and Section 414(c) of the Code.

            (g)   The term "EXCESS AMOUNT" shall mean the excess of the
                  Participant's Annual Additions for the Limitation Year over
                  the Defined Contribution Maximum Permissible Amount.

            (h)   The term "HIGHEST AVERAGE COMPENSATION" shall mean the average
                  Compensation for the three consecutive years of service with
                  the Employer that produces the highest average. A year of
                  service with the Employer shall be any 12-consecutive month
                  period of service.

            (i)   The term "LIMITATION YEAR" shall mean the 12-consecutive month
                  period corresponding with the calendar year. If the Limitation
                  Year is amended to a different 12-consecutive month period,
                  the new Limitation Year must begin on a date within the
                  Limitation Year in which the amendment is made.

            (j)   The term "DEFINED CONTRIBUTION MAXIMUM PERMISSIBLE AMOUNT"
                  shall mean annual Additions of a Participant which do not
                  exceed the lesser of (i) $30,000 ($40,000 on and after January
                  1, 2002, adjusted in accordance with regulations prescribed by
                  the Secretary of the Treasury for increases in the cost of
                  living, or (ii) 25 (100 percent on and after January 1, 2002)
                  percent of such Participant's Compensation paid for such
                  Limitation Year as set forth in Section 415(e)(l) of the Code.
                  If a short Limitation Year is created because of an amendment
                  changing the Limitation Year to a different 12-month
                  consecutive period, such Annual Additions shall not exceed
                  $30,000 multiplied by a fraction, the numerator of which is
                  the number of months in the short Limitation Year and the
                  denominator of which is 12.

            (k)   The term "DEFINED BENEFIT MAXIMUM PERMISSIBLE AMOUNT" shall
                  mean the Annual Benefit of a Participant which does not exceed
                  the lesser of $90,000 or 100 percent of the Participant's
                  Highest Average Compensation as set forth in Section 415(b)(1)
                  of the Code.

            (l)   The term "SOCIAL SECURITY RETIREMENT AGE" shall mean the age
                  used as the retirement age under Section 216(l) of the Social
                  Security Act, without regard to any age increase factor and as
                  if the early retirement age under said Section 216(l)(2) were
                  62.

      1.03. LIMITATIONS ON ALLOCATIONS UNDER THE PLAN. Notwithstanding any other
provision of the Plan to the contrary, the amount of Annual Additions which may
be credited to the Participant's Individual Account for any Limitation Year
shall not exceed the lesser of the Defined Contribution Maximum Permissible
Amount or any other limitation contained in the

                                      B-2
<PAGE>
Plan. If the Annual Additions to the Separate Accounts of a Participant in any
Limitation Year would otherwise exceed such amount, the Excess Amount shall be
disposed of in the order set forth as follows:

            (1)   Any after-tax contributions made by a Participant for the
                  Limitation Year shall be reduced.

            (2)   Any tax deferred contributions made on the Participant's
                  behalf for the Limitation Year that have not been matched by
                  Employer matching contributions shall be reduced.

            (3)   Any tax deferred contributions made on the Participant's
                  behalf for the Limitation Year that have been matched by
                  Employer matching contributions and the Employer matching
                  contributions attributable thereto shall be reduced pro rata.

            (4)   Employer contributions (other than Employer matching
                  contributions) and forfeitures otherwise allocable to the
                  Participant's Individual Account for the Limitation Year shall
                  be reduced.

The amount of any reduction of tax deferred contributions and employee
contributions (plus income attributable thereto) shall be returned to the
Participant. The amount of any reduction of Employer matching contributions or
any other Employer contribution shall be deemed to be a forfeiture for the
Limitation Year. Amounts deemed to be forfeitures under this Section 1.03 shall
be held unallocated in a suspense account established for the Limitation Year
and shall be applied against the Employer's contribution obligation for the next
following Limitation Year (and succeeding Limitation Years, as necessary). If a
suspense account is in existence at any time during a Limitation Year, all
amounts in the suspense account must be allocated to Participants' Individual
Accounts (subject to the limitations set forth in this Appendix B) before any
further Employer contributions may be made to the Plan on behalf of
Participants. If a suspense account is in existence at any time during a
Limitation Year pursuant to this Section 1.03, it shall not participate in the
allocation of the investment gains and losses on the Plan's assets.

      1.04 LIMITATIONS FOR MULTIPLE DEFINED CONTRIBUTION PLAN PARTICIPATION. If
a Participant is covered by any other qualified defined contribution plan
(whether or not terminated) maintained by the Employer concurrently with the
Plan, and if the Annual Addition for the Limitation Year would otherwise exceed
the amount that may be applied for the Participant's benefit under the
limitation contained in Section 1.03, such excess shall be reduced first by
applying the procedures set forth in Section 1.03. If the limitation contained
in Section 1.03 is still not satisfied, such excess shall be reduced by
returning the employee contributions made by the Participant for the Limitation
Year under all such other plans and the income attributable thereto. If the
limitation contained in Section 1.03 is still not satisfied after returning all
of such employee contributions, the excess shall be reduced by returning
elective contributions made on the Participant's behalf under all such other
plans and the income

                                      B-3
<PAGE>
attributable thereto. If the limitation contained in Section 1.03 is still not
satisfied after returning all of such elective contributions, then the Employer
contributions and forfeitures for the Limitation Year under all such other plans
that have been allocated to the Participant shall be reduced and disposed of as
provided in such other plan.

      1.05 LIMITATIONS FOR DEFINED BENEFIT PLAN PARTICIPATION. For Limitation
Years beginning prior to January 1, 2000, if a Participant in the Plan is also
covered by a qualified defined benefit plan (whether or not terminated)
maintained by the Employer, in no event shall the sum of the Defined Benefit
Fraction and the Defined Contribution Fraction exceed 1.0 in any Limitation
Year.

      1.06 SCOPE OF LIMITATIONS. The limitations contained in Sections 1.03,
1.04, and 1.05 shall be applicable only with respect to benefits provided
pursuant to defined contribution plans and defined benefit plans described in
Section 415(k) of the Code and all such defined contribution plans (whether or
not terminated) of the Employer shall be treated as one defined contribution
plan and all such defined benefit plans (whether or not terminated) of the
Employer shall be treated as one defined benefit plan.

                                      B-4
<PAGE>
                                   APPENDIX C

                              TOP HEAVY PROVISIONS

      1.01 APPLICABILITY. Notwithstanding any other provision to the contrary,
in the event the Plan is deemed to be a top-heavy plan for any Plan Year, the
provisions contained in this Appendix C with respect to vesting and
contributions made by the Employer shall be applicable with respect to such Plan
Year. In the event that the Plan is determined to be a Top-Heavy Plan and upon a
subsequent determination date is determined to no longer be a Top-Heavy Plan,
the vesting and the contribution provisions in effect immediately preceding the
Plan Year in which the Plan was determined to be a Top-Heavy Plan shall again
become applicable as of such subsequent determination date.

      1.02 TOP-HEAVY DEFINITIONS. The following definitions shall be applicable
to this Appendix C:

            (a)   The term "COMPENSATION" shall have the meaning set forth in
                  Treas. Reg. Section 414(q)(4) of the Code.

            (b)   The term "DETERMINATION DATE" shall mean for any Plan Year
                  subsequent to the first Plan Year, the last day of the
                  preceding Plan Year and for the first Plan Year of the Plan,
                  the last day of that Year.

            (c)   The term "EMPLOYER" shall mean the Company and each Affiliate.

            (d)   The term "KEY EMPLOYEE" shall mean any Employee or former
                  Employee (and the beneficiaries of such Employer) who at any
                  time during the determination period was an officer of the
                  Employer if such individual's annual Compensation exceeds 50
                  percent of the dollar limitation under Section 415(b)(1)(A) of
                  the Code, an owner (or considered an owner) under Section 318
                  of the Code) of one of the ten largest interests in the
                  Employer if such individual's Compensation exceeds 100 percent
                  of the dollar limitation under Section 415(c)(1)(A) of the
                  Code, a 5% owner of the Employer (as defined in Section
                  416(i)(1)(b)(i) of the Code), or a 1 percent owner of the
                  Employer who has an annual Compensation of more than $150,000.
                  The determination period is the Plan Year containing the
                  Determination Date and the four preceding Plan Years.

            (e)   The term "PERMISSIVE AGGREGATION GROUP" shall mean the
                  Required Aggregation Group of plans plus any other plan or
                  plans of the Employer which, when considered as a group with
                  the Required Aggregation Group, would continue to satisfy the
                  requirements of Section 401(a)(4) and 410 of the Code.

                                      C-1
<PAGE>
            (f)   The term "PRESENT VALUE" shall mean for purposes of computing
                  present value calculations in determining the Top-Heavy Ratio,
                  present value calculations based on the actuarial assumptions
                  as stated in the applicable plan.

            (g)   The term "REQUIRED AGGREGATION GROUP" shall mean (a) each tax
                  qualified plan of the Employer in which at least one Key
                  Employee participates or participated at any time during the
                  determination period (regardless of whether the plan
                  terminated), and (b) any other tax qualified plan of the
                  Employer which enables a plan described in clause (a) to meet
                  the requirements of Section 401(a)(4) or 410 of the Code.

            (h)   The term "SUPER TOP-HEAVY GROUP" with respect to a particular
                  Plan Year shall mean a Required or Permissive Aggregation
                  Group that, as of the Determination Date, would qualify as a
                  Top-Heavy Group under the definition in Paragraph (j) of this
                  Section 1.02 with "90 percent" substituted for "60 percent"
                  each place where "60 percent" appears in such definition.

            (i)   The term "SUPER TOP-HEAVY PLAN" with respect to a particular
                  Plan Year shall mean a plan that, as of the Determination
                  Date, would qualify as a Top-Heavy Plan under the definition
                  in Paragraph (k) of this Section 1.02 with "90 percent"
                  substituted for "60 percent" each place where "60 percent"
                  appears in such definition. A plan is also a "Super Top-Heavy
                  Plan" if it is part of a Super Top-Heavy Group.

            (j)   The term "TOP-HEAVY GROUP" with respect to a particular Plan
                  Year shall mean a Required or Permissive Aggregation Group if
                  the sum, as of the Determination Date, of the present value of
                  the cumulative accrued benefits for Key Employees under all
                  defined benefit plans included in such group and the aggregate
                  of the account balances of Key Employees under all defined
                  contribution plans included in such group exceeds 60 percent
                  of a similar sum determined for all employees covered by the
                  plans included in such group.

            (k)   The term "TOP-HEAVY PLAN" with respect to a particular Plan
                  Year shall mean the Plan if any of the following conditions
                  exist:

                  (i)   If the Top-Heavy Ratio for the Plan exceeds 60 percent
                        and the Plan is not part of any Required Aggregation
                        Group or Permissive Aggregation Group of plans.

                                      C-2
<PAGE>
                  (ii)  If the Plan is a part of a Required Aggregation Group of
                        plans but not part of a Permissive Aggregation Group and
                        the Top-Heavy Ratio for the group of plans exceeds 60
                        percent.

                  (iii) If the Plan is a part of a Required Aggregation Group
                        and part of a Permissive Aggregation Group of plans and
                        the Top-Heavy Ratio for the Permissive Aggregation Group
                        exceeds 60 percent.

            (l)   The term "TOP-HEAVY RATIO" shall mean:

                  (i)   While the Employer maintains one or more defined
                        contribution plans (including any simplified employee
                        pension plan) and the Employer has not maintained any
                        defined benefit plan which during the 5-year period
                        ending on the Determination Date(s) has or has had
                        accrued benefits, the Top-Heavy Ratio for the Plan alone
                        or for the Required or Permissive Aggregation Group, as
                        appropriate, is a fraction, the numerator of which is
                        the sum of the account balances of all Key Employees as
                        of the Determination Date(s) (including any part of any
                        account balance distributed in the five-year period
                        ending on the Determination Date(s)), and the
                        denominator of which is the sum of all account balances
                        (including any part of any account balance distributed
                        in the five-year period ending on the Determination
                        Date(s)), both computed in accordance with Section 416
                        of the Code. Both the numerator and denominator of the
                        Top-Heavy Ratio are adjusted to reflect any contribution
                        not actually made as of the Determination Date, but
                        which is required to be taken into account on that date
                        under Section 416 of the Code.

                  (ii)  While the Employer maintains one or more defined
                        contribution plans (including any simplified employee
                        pension plans) and the Employer maintains or has
                        maintained one or more defined benefit plans which
                        during the five-year period ending on the Determination
                        Date(s) has or has had any accrued benefits, the
                        Top-Heavy Ratio for any Required or Permissive
                        Aggregation Group as appropriate is a fraction, the
                        numerator of which is the sum of account balances under
                        the aggregated defined contribution plan or plans for
                        all Key Employees, determined in accordance with
                        Subparagraph (i) above, and the present value of accrued
                        benefits under the aggregated defined benefit plan or
                        plans for

                                      C-3
<PAGE>
                        all Key Employees as of the Determination Date(s), and
                        the denominator of which is the sum of the account
                        balances under the aggregated defined contribution plan
                        or plans for all participants, determined in accordance
                        with Subparagraph (i) above, and the present value of
                        accrued benefits under the defined benefit plan or plans
                        for all participants as of the Determination Date(s),
                        all determined in accordance with Section 416 of the
                        Code. The accrued benefits under a defined benefit plan
                        in both the numerator and denominator of the Top-Heavy
                        Ratio are adjusted for any distribution of an accrued
                        benefit made in the five-year period ending on the
                        Determination Date.

                  (iii) For purposes of Subparagraphs (i) and (ii) above, the
                        value of account balances and the present value of
                        accrued benefits will be determined as of the most
                        recent valuation date that falls within or ends with the
                        12-month period ending on the Determination Date, except
                        as provided in Section 416 of the Code for the first and
                        second plan years of a defined benefit plan. The account
                        balances and accrued benefits of a participant (1) who
                        is not a Key Employee but who was a Key Employee in a
                        prior year, or (2) who has not performed services for
                        the Employer maintaining the Plan at any time during the
                        5-year period ending on the Determination Date will be
                        disregarded. The calculation of the Top-Heavy Ratio, and
                        the extent to which distributions, rollovers and
                        transfers are taken into account will be made in
                        accordance with Section 416 of the Code. Deductible
                        employee contributions shall not be taken into account
                        for purposes of computing the Top-Heavy Ratio. When
                        aggregating plans the value of account balances and
                        accrued benefits will be calculated with reference to
                        the Determination Date that falls within the same
                        calendar year.

            (m)   The term "VALUATION DATE" shall mean for purposes of computing
                  the Top-Heavy Ratio, the Determination Date.

      1.03 TOP-HEAVY MINIMUM ALLOCATION RULES. The following Top-Heavy Plan
minimum allocation rules shall apply:

            (a)   Except as otherwise provided in Paragraph (b) and (c) below,
                  the Employer Contributions and forfeitures allocated on behalf
                  of any Participant who is not a Key Employee shall be the
                  lesser of 3 percent of such Participant's Compensation or in
                  the case where the Employer has no defined benefit plan which
                  designates the Plan to satisfy Section 401 of the Code, the
                  largest percentage of compensation allocated with respect to a
                  Key Employee for the Plan Year. Pre-Tax Matched Contributions
                  and Pre-Tax Unmatched Contributions cannot be used to satisfy
                  the minimum Section 416

                                      C-4
<PAGE>
                  contributions for non-Key Employees. Further, in making the
                  determination of the percentage at which contributions are
                  made for the Key Employee with the highest percentage, Pre-Tax
                  Matched Contributions on behalf of Key Employees are taken
                  into account.

            (b)   The provisions in Paragraph (a) above shall not apply to any
                  Participant who is not actively employed as an Eligible
                  Employee by the Employer on the last day of the Plan Year for
                  which the minimum allocation is to be made.

            (c)   The provisions in Paragraph (a) above shall not apply to any
                  Participant to the extent the Participant is covered under any
                  other plan or plans of the Employer, and by the terms of such
                  plan or plans it is provided that the minimum allocation or
                  benefit requirements applicable to Top-Heavy Plans shall be
                  met in such other plan or plans. If such other plan is, or if
                  one of such other plans is, a defined benefit plan maintained
                  by the Employer, and such plan is a Top-Heavy Plan, the
                  minimum benefit requirements applicable to Top-Heavy Plans
                  shall be met under such defined benefit plan as provided
                  therein, to the extent such benefit can be provided under such
                  plan or plans. If such other plan is, or if one of such other
                  plans is, a defined contribution plan maintained by the
                  Employer, and such plan is a Top-Heavy Plan, the minimum
                  allocation requirements shall be met under such plan, except
                  as may be otherwise provided in such other plan. The
                  application and administration of the minimum allocation or
                  benefit requirements for Top-Heavy Plans shall be satisfied in
                  a manner so as to only satisfy the minimum allocation/benefit
                  requirements as permissible and so as to avoid any duplication
                  of minimum allocation/benefits for non-Key Employees, as
                  provided under Section 416 of the Code.

      1.04 TOP-HEAVY COMPENSATION LIMITATION. The annual compensation of any
Participant to be taken into account under the Plan during any Plan Year in
which the Plan is determined to be a Top-Heavy Plan shall not exceed the
limitation on Compensation set forth in paragraph (15) of Section 1.1 of the
Plan.

      1.05 TOP-HEAVY VESTING PROVISIONS. In the event that the Plan is
determined to be a Top-Heavy Plan with respect to any Plan Year, a Participant
shall be vested in a portion of his Individual Account which shall be no less
than it would be under following vesting schedule:

                                      C-5
<PAGE>
<TABLE>
<CAPTION>
         Years of Vesting Service             Vested Percentage
         ------------------------             -----------------
<S>                                           <C>
         Less than two years                            0%
         Two but less than three years                 20%
         Three but less than four years                40%
         Four but less than five years                 60%
         Five but less than six years                  80%
         Six or more years                            100%
</TABLE>

      1.06 TOP-HEAVY PLAN/BENEFIT LIMITATIONS. In any Limitation Year beginning
after December 31, 1999, in which the Plan is a Top-Heavy Plan, the denominators
of the defined benefit fraction and the defined contribution fraction (as such
terms are used in applying the benefit limitation provisions of Section 415 of
the Code) shall be computed using 100 percent of the dollar limitation instead
of 125 percent

                                      C-6
<PAGE>
                                   APPENDIX D

               COVERED UNITS OF FERRO CORPORATION AND SUBSIDIARIES

<TABLE>
<CAPTION>
-------------------------    ----------------------    -----------------------    ----------------------    ----------------------
                               COVERED DIVISION
        EMPLOYER                   OR GROUP                   LOCATION               CLASSIFICATION            EFFECTIVE DATES
-------------------------    ----------------------    -----------------------    ----------------------    ----------------------
<S>                          <C>                       <C>                        <C>                      <C>
Ferro Corporation            Ceramics & Colorants      Cleveland, OH              Salaried                  01/01/84
                             Group
                             ----------------------    -----------------------    ----------------------    ----------------------
                                                       Los Angeles, CA            Salaried                  01/01/84
                                                       -----------------------    ----------------------    ----------------------
                                                       E. Liverpool, OH           Salaried                  01/01/84
                                                       -----------------------    ----------------------    ----------------------
                                                       Crooksville, OH            Salaried                  01/01/84
                                                       -----------------------    ----------------------    ----------------------
                                                       Orrville, OH               Salaried                  01/01/84
                                                       -----------------------    ----------------------    ----------------------
                                                       Pittsburgh, PA             Salaried                  01/01/84
                                                       -----------------------    ----------------------    ----------------------
                                                       Shreve, OH                 Salaried                  01/01/95
                                                                                  Hourly                    01/01/97
                                                       -----------------------    ----------------------    ----------------------
                                                       Toccoa, Georgia            Salaried                  01/01/84
                                                                                  Hourly  (except  Kiln     01/01/95
                                                                                  Support Department)
                             ----------------------    -----------------------    ----------------------    ----------------------
                             Corporate                 All                        Salaried                  01/01/84
                             ----------------------    -----------------------    ----------------------    ----------------------
                             Electronic Materials      Niagara Falls, NY          Salaried                  10/01/99
                             Division                  -----------------------    ----------------------    ----------------------
                                                       Penn Yan, NY               Salaried                  01/01/84
                                                                                  Hourly                    01/01/94
                                                       -----------------------    ----------------------    ----------------------
                                                       San Marcos, CA             Salaried                  01/01/94
                                                       -----------------------    ----------------------    ----------------------
                                                       Santa Barbara, CA          Salaried                  01/01/84 - 12/31/99
                                                       -----------------------    ----------------------    ----------------------
                                                       Vista, CA                  Salaried                  01/01/00
                             ----------------------    -----------------------    ----------------------    ----------------------
                             Filled & Reinforced       Evansville, IN             Salaried                  01/01/84
                             Plastics Division                                    Hourly                    01/01/98
                                                       -----------------------    ----------------------    ----------------------
                                                       Carpentersville, IL        Salaried                  07/01/99
                                                                                  Hourly                    07/01/99
                                                       -----------------------    ----------------------    ----------------------
                                                       Wilmington, DE             Salaried                  07/01/99
                             ----------------------    -----------------------    ----------------------    ----------------------
                             Grant Chemical            Baton Rouge, LA            Salaried                  01/01/84
                             Division                                             Hourly                    07/01/92
                             ----------------------    -----------------------    ----------------------    ----------------------
                             Industrial Coatings       Brecksville, OH            Salaried                  01/01/95
                             Group                     -----------------------    ----------------------    ----------------------
                                                       Cleveland, OH              Salaried                  01/01/84
                                                       -----------------------    ----------------------    ----------------------
                                                       Los Angeles, CA            Salaried                  01/01/84
                                                       -----------------------    ----------------------    ----------------------
                                                       Nashville, TN              Salaried                  01/01/84
                             ----------------------    -----------------------    ----------------------    ----------------------
                             Keil Chemical             Hammond, IN                Salaried                  01/01/84
                             Division
                             ----------------------    -----------------------    ----------------------    ----------------------
                             Liquid Coating &          Edison, NJ                 Salaried                  07/01/92
                             Dispersions Division                                 Hourly                    07/01/92
                                                       -----------------------    ----------------------    ----------------------
                                                       Plymouth, IN               Salaried                  01/01/84
                             ----------------------    -----------------------    ----------------------    ----------------------
                             Plastic Colorants         South Plainfield, NJ       Salaried                  01/01/84
                             Division                                             Hourly                    01/01/95
                                                       -----------------------    ----------------------    ----------------------
                                                       Stryker, OH                Salaried                  01/01/84
                             ----------------------    -----------------------    ----------------------    ----------------------
                             Polymer Additives         Cleveland, OH              Salaried                  01/01/96
                             Division
                             ----------------------    -----------------------    ----------------------    ----------------------
                                                       Ft. Worth, TX              Salaried                  01/01/96
                                                                                  Hourly                    01/01/96
                                                       -----------------------    ----------------------    ----------------------
                                                       Walton Hills, OH           Salaried                  01/01/84
                                                       -----------------------    ----------------------    ----------------------
</TABLE>

                                      D-1
<PAGE>
                                   ADDENDUM I

RE:   FORMER ADVANCED POLYMER EMPLOYEES

      A.    PARTICIPATION

            Any person who is employed on a salaried basis at a former Advanced
Polymer Compounding Limited Partnership or Advanced Polymer Alloys, LLC facility
on March 10, 1999, shall become a Participant as of July 1, 1999. Each other
person who becomes employed on a salaried basis at such a facility after March
10, 1999, shall become a Participant in accordance with the provisions of
Article II.

      B.    SERVICE CREDIT

            Any person who becomes a Participant as of July 1, 1999, pursuant to
the provisions of Paragraph A above, shall be credited with Service and Vesting
Service under the Plan with respect to periods of employment with Advanced
Polymer Compounding Limited Partnership and Advanced Polymer Alloys LLC prior to
March 10, 1999, as though such employment was employment with the Company and
covered under the Plan and shall be credited with Service and Vesting Service
under the Plan with respect to periods of employment on and after March 10,
1999, in accordance with the provisions of Sections 2.4 and 6.3. Each other
person who becomes a Participant pursuant to the provisions of Paragraph A above
shall be credited with Service and Vesting Service with respect to periods of
employment after he becomes a Participant in accordance with the provisions of
Sections 2.4 and 6.3.

                                      ADI-1
<PAGE>
                                   ADDENDUM II

RE:   TAM CERAMICS, INC. EMPLOYEES FORMERLY COVERED UNDER THE COOKSON AMERICA,
      INC. SALARIED EMPLOYEES' SAVINGS PLAN

      A.    PARTICIPATION

            Any person who is employed on a salaried basis at a TAM Ceramics,
Inc. ("TAM") facility on July 30, 1999, shall become an Employee and Participant
as of October 1, 1999. Each other person who becomes employed on a salaried
basis at such a former TAM facility after July 30, 1999, shall become an
Employee as of the later of his Employment Commencement Date or October 1, 1999
and shall become a Participant in accordance with the provisions of Article II.

      B.    SERVICE CREDIT

            Any person who becomes a Participant as of October 1, 1999, pursuant
to the provisions of Paragraph A above, shall be credited with Service and
Vesting Service under the Plan with respect to periods of employment prior to
July 30, 1999, equal to the service for vesting purposes with which he was
credited under the Cookson America, Inc. Salaried Employees' Savings Plan (the
"Cookson Plan") as of July 30, 1999, if any, and shall be credited with Service
and Vesting Service with respect to periods of employment after July 30, 1999,
in accordance with the provisions of Sections 2.4 and 6.3. Each other person who
becomes a Participant pursuant to the provisions of Paragraph A above shall be
credited with Service and Vesting Service with respect to periods of employment
after he becomes a Participant in accordance with the provisions of Sections 2.4
and 6.3.

      C.    TRANSFER OF ASSETS

            As of January 18, 2000, assets and liabilities attributable to
salaried employees of TAM who were employed by TAM on July 30, 1999, and who
were covered under the Cookson Plan shall be transferred to the Plan and held
thereunder pursuant to the provisions of the Plan.

      D.    GRANDFATHERED DISTRIBUTION PROVISIONS

            Notwithstanding the provisions of Section 6.5, (a) the balance of
the Individual Account of a Participant who was actively participating in the
Cookson Plan prior to July 1, 1995, and whose account under the Cookson Plan was
transferred to the Plan pursuant to Paragraph C, may, at the election of such
Participant, be distributed in installment payments which do not extend beyond
the earlier of 15 years or the life expectancy of the Participant (or the life
expectancy of the Participant and his Beneficiary) determined under Table V or
VI of Treas. Reg. Section 1.72-9; and (b) in the case of a Participant who was
formerly covered by the Cookson Plan and whose Individual Account contains funds
transferred from the Cookson Plan that had been previously transferred to the
Cookson Plan from a pension plan that provided for distributions in the form of
a qualified joint and survivor annuity, such Participant, solely to the extent
required by the Code with respect to his account under the Cookson Plan at the
time of

                                     ADIII-1
<PAGE>
transfer to the Plan pursuant to Paragraph C, shall be paid the benefit
attributable to such funds only in a qualified joint and survivor annuity form,
unless the consent of such Participant's spouse is obtained in a written
instrument explaining the affect of the consent and witnessed by a Plan
representative or a notary public. A qualified joint and survivor annuity shall
provide payments to the Participant during his lifetime which continue at 50% of
the monthly amount for the life of his spouse in the event said spouse survives
the Participant. Solely for purposes of this Paragraph D, a Participant's spouse
shall mean a spouse to whom the Participant was married during the one-year
period ending on the day his benefit commences.

      E.    GRANDFATHERED WITHDRAWAL PROVISIONS

            Notwithstanding any other provision of the Plan to the contrary,
upon proper application therefor in the form and manner as the Committee may
specify, a Participant who formerly participated in the Cookson Plan and whose
Individual Account contains funds transferred directly from the Cookson Plan,
may elect to receive a portion or all of the portion of his Matching
Contribution Account under the Plan attributable to his Matching Account under
the Cookson Plan, provided such Participant had participated in the Cookson Plan
for at least five years and provided further that such a withdrawal may be made
only once in a five year period, beginning with the date of his first such
withdrawal.

      F.    GRANDFATHERED INVESTMENT ELECTION PROVISIONS

            Notwithstanding the provisions of Article IV, a Participant who
formerly participated in the Cookson Plan and whose Individual Account contains
funds transferred directly from the Cookson Plan may elect to have Matching
Contributions allocated to his Individual Account invested in the Investment
Fund or Funds of his choice in the form, manner and time prescribed by the
Committee.

                                     ADII-2
<PAGE>
                                  ADDENDUM III

RE:   FERRO GLASS & COLOR EMPLOYEES FORMERLY COVERED UNDER THE DMC2 DEGUSSA
      CATALYSTS CERDEC CORPORATION SAVINGS & INVESTMENT PLAN

      A.    PARTICIPATION

            Any person who is employed on a salaried basis at a Ferro Glass &
Color Corporation ("DMC2") facility on December 31, 2001, shall become an
Employee and Participant as of January 1, 2002. Each other person who becomes
employed on a salaried basis at such a former DMC2 facility after December 31,
2001, shall become an Employee as of the later of his Employment Commencement
Date or January 1, 2002 and shall become a Participant in accordance with the
provisions of Article II.

      B.    SERVICE CREDIT

            Any person who becomes a Participant as of January 1, 2002, pursuant
to the provisions of Paragraph A above, shall be credited with Service and
Vesting Service under the Plan with respect to periods of employment prior to
December 31, 2001, equal to the service for vesting purposes with which he was
credited under the DMC2 Degussa Catalysts Cerdec Corporation Savings &
Investment Plan (the "DMC2 Plan") as of December 31, 2001, if any, and shall be
credited with Service and Vesting Service with respect to periods of employment
after December 31, 2001, in accordance with the provisions of Sections 2.4 and
6.3. Each other person who becomes a Participant pursuant to the provisions of
Paragraph A above shall be credited with Service and Vesting Service with
respect to periods of employment after he becomes a Participant in accordance
with the provisions of Sections 2.4 and 6.3.

      C.    TRANSFER OF ASSETS

            As of December 31, 2001, assets and liabilities attributable to
employees of DMC2 who were employed by DMC2 on December 31, 2001, and who were
covered under the DMC2 Plan shall be transferred to the Plan and held thereunder
pursuant to the provisions of the Plan.

                                    ADIII-1<PAGE>
                                                                  EXHIBIT 10(d)

                                FERRO CORPORATION

                           EMPLOYEE STOCK OPTION PLAN

            1. Purpose of Plan. The purpose of this Plan is to advance the
interests of Ferro Corporation (hereinafter called the "Corporation") and its
shareholders by providing a means whereby officers, non-employee directors and
key employees of the Corporation and its subsidiaries may be given an
opportunity to purchase Common Stock, $1.00 par value (hereinafter called
"shares") of the Corporation under options and stock appreciation rights granted
under the Plan, to the end that the Corporation may retain present personnel
upon whose judgment, initiative and efforts the successful conduct of the
business of the Corporation largely depends, and may attract new personnel. Some
of the options granted under this Plan may be options which are intended to
qualify as "incentive stock options" under Section 422 of the Internal Revenue
Code of 1986, as amended (the "Code"), or any successor provision and are
hereinafter sometimes called "incentive stock options."

            2. Shares Subject to the Plan. The aggregate number of shares of the
Corporation for which options may be granted under this Plan shall be that
number of shares remaining available for grant under the Plan on the close of
business on the date immediately prior to the 2000 Annual Meeting of
Shareholders plus 1,500,000; provided, however, that whatever number of said
shares shall remain reserved for issuance pursuant to this Plan at the time of
any stock split, stock dividend or other change in the Corporation's
capitalization shall be appropriately adjusted to reflect such stock dividend,
stock split or other change in capitalization. Shares issued pursuant to the
exercise of options granted hereunder shall be made available from authorized
but unissued shares of the Corporation or shares held by the Corporation as
treasury shares. Any shares for which an option is granted hereunder that are
released from such option for any reason other than the exercise of stock
appreciation rights granted hereunder shall become available for other options
to be granted under this Plan.

            3. Administration of the Plan. Except to the extent the Board of
Directors reserves to itself the authority with respect thereto, this Plan shall
be administered under the supervision of a committee (hereinafter called the
"Committee") composed of not less than three directors of the Corporation
appointed by the Board of Directors. The members of the Committee shall not,
pursuant to the exercise of discretion, be eligible, and shall not have been so
eligible for a period of at least one year prior to their appointment, to
participate in this Plan or to have been selected to participate in any other
plan of the Corporation or any affiliate (as defined under the Securities
Exchange Act of 1934) of the Corporation entitling the participants herein to
acquire stock, stock options or stock appreciation rights of the Corporation or
any affiliate of the Corporation. Members of the Committee shall serve at the
pleasure of the Board of Directors, and may resign by written notice filed with
the Chairman of the Board or the Secretary of the Corporation. A vacancy in the
membership of the Committee shall be filled by the appointment of a successor
member by the Board of Directors. Until such vacancy is filled, the remaining
members shall constitute a quorum and the action at any meeting of a majority of
the entire Committee, or an action unanimously approved in writing, shall
constitute action of the Committee. Subject to the express provisions of this
Plan, the Committee shall have conclusive authority to construe and interpret
the Plan, any stock option agreement entered into hereunder, and any stock
appreciation right granted hereunder, to adopt and amend forms of Option
Agreements and Grants of Stock Appreciation Rights and to establish, amend, and
rescind rules and regulations for the administration of this Plan and shall have
such additional authority as the Board of Directors may from time to time
determine to be necessary or desirable.

                                     - 1 -
<PAGE>
            In addition, with respect to Key Employees who are foreign nationals
or employed outside the United States, or both, there may be adopted in the
manner provided herein such rules and regulations, policies, subplans or the
like as are necessary or advisable in order to effectuate the purposes of the
Plan.

            4. Granting of Options. The Committee from time to time shall
designate from among the full-time employees of the Corporation and its
subsidiaries and any corporation at least 20% of the voting securities of which
is owned by the Corporation or a subsidiary of the Corporation to whom options
to purchase shares shall be granted under this Plan, the type of option to be
granted and the number of shares which shall be subject to each option so
granted; provided however, that incentive stock options may only be granted to
full-time employees of the Corporation and its subsidiaries, as such term is
defined in this Plan. Except to the extent the Board of Directors reserves to
itself the authority with respect thereto, all actions of the Committee under
this Paragraph shall be conclusive; provided, however, that the aggregate fair
market value (determined as of the date the option is granted) of shares for
which incentive stock options are exercisable for the first time by any
individual during any calendar year (under this Plan or any other plan of the
Corporation which provides for the granting of incentive stock options) may not
exceed $100,000. Any incentive stock option that is granted to any employee who
is, at the time the option is granted, deemed for purposes of Section 422 of the
Code, or any successor provision, to own shares of the Corporation possessing
more than ten percent (10%) of the total combined voting power of all classes of
shares of the Corporation or of a parent or subsidiary of the Corporation, shall
have an option price that is at least 110 percent (110%) of the fair market
value of the shares and shall not be exercisable after the expiration of 5 years
from the date it is granted. The maximum number of options granted to any single
executive during any period of eleven consecutive months shall not exceed
options for 100,000 shares, subject to adjustment in accordance with Section 2
of the Plan.

            5. Granting of Stock Appreciation Rights. Except to the extent the
Board of Directors reserves to itself the authority with respect thereto, the
Committee shall have the discretion to grant to optionees stock appreciation
rights in connection with options to purchase shares on such terms and
conditions as it deems appropriate. A stock appreciation right will allow an
optionee to surrender an option or portion thereof and to receive payment from
the Corporation in an amount equal to the excess of the aggregate fair market
value of the shares with respect to which options are surrendered over the
aggregate option price of such shares. A stock appreciation right shall be
exercisable no sooner than six months after it is granted and thereafter at any
time prior to its stated expiration date, but only to the extent the related
stock option right may be exercised. Payment shall be made in shares, cash or a
combination of shares and cash, as provided in the Grant of Stock Appreciation
Rights. Shares as to which any option is so surrendered shall not be available
for future option grants hereunder. The Committee may grant stock appreciation
rights concurrently with the grant of an option or, in the case of an option
which is not an incentive stock option, with respect to an outstanding option.

            6. Option Period. No option granted under this Plan may be exercised
later than ten years from the date of grant.

            7. Option Price. The option price shall be set forth in the Option
Agreement, which price in no case shall be less than the per share fair market
value of the outstanding shares of the Corporation on the date that the option
is granted. The option price may be fixed in terms of a formula and one or more
officers of the Corporation may be authorized to compute the price in accordance
with that formula. Payment of the option price may be made in cash, shares, or a
combination of cash and shares, as provided in the Option Agreement in effect
from time to time. The date on which the granting of an option is approved shall
be deemed the date on which the option is granted.

                                     - 2 -
<PAGE>
            8. Option Agreement. The Option Agreement pursuant to which option
rights are granted to an employee shall be in the applicable form (consistent
with this Plan) from time to tzime approved in the manner provided herein and
shall be signed on behalf of the Corporation by the Chief Executive Officer or
any Vice President of the Corporation, other than the employee who is a party
thereto. The Option Agreement shall set forth the number of shares which are
subject to the option to purchase, the type of option granted, the option price
to be paid upon exercise, the manner in which the option is to be exercised and
the option price is to be paid, and the option period, and may include such
other terms not inconsistent with this Plan as are from time to time approved in
the manner provided herein.

            9. Grant of Stock Appreciation Rights. The Grant of Stock
Appreciation Rights pursuant to which stock appreciation rights are granted
shall be in the applicable form (consistent with this Plan) from time to time
approved in the manner provided herein and shall be signed on behalf of the
Corporation by the Chief Executive Officer or any Vice President of the
Corporation, other than the employee to whom the grant is made. The Grant of
Stock Appreciation Rights shall set forth the option or options to which the
grant relates, the manner in which the stock appreciation rights are
exercisable, and may include such other terms not inconsistent with this Plan as
are from time to time approved in the manner provided herein.

            10. Transferability. No option or stock appreciation right shall be
transferable by the optionee except by will or the laws of descent and
distribution, and options and stock appreciation rights may be exercised during
the employee's lifetime only by him or his guardian or legal representative.
Notwithstanding the foregoing, the Committee may, in its discretion, authorize
the transfer of all or a portion of options granted to an optionee (a) to the
optionee's spouse, children, grandchildren, parents, siblings and to other
family members approved by the Committee ("Family Members"); (b) to trust(s) for
the exclusive benefit of such Family Members; or (c) to partnerships in which
such Family Members are at all times the only partners. Any transfer to or for
the benefit of Family Members permitted hereunder may be made subject to such
conditions or limitations as the Committee may establish to ensure compliance
under the federal securities laws, or for other purposes. Options transferred to
or for the benefit of Family Members may be exercised by the transferee during
or after the employee's lifetime.

            11. Extraordinary Distributions and Pro-Rata Repurchases. In the
event the Corporation shall at any time when a stock option is outstanding make
an Extraordinary Distribution (as hereinafter defined) in respect of Common
Stock or effect a Pro-Rata Repurchase of Common Stock (as hereinafter defined),
the Committee shall consider the economic impact of the Extraordinary
Distribution or Pro-Rata Repurchase on Participants and make such adjustments as
it deems equitable under the circumstances. The determination of the Committee
shall, subject to revision by the Board of Directors, be final and binding upon
all Participants.

            As used herein, the term "Extraordinary Distribution" means any
dividend or other distribution of:

                  (a) cash, where the aggregate amount of such cash dividend or
            distribution together with the amount of all cash dividends and
            distributions made during the preceding twelve months, when combined
            with the aggregate amount of all Pro-Rata Repurchases (for this
            purpose, including only that portion of the aggregate purchase price
            of such Pro Rata Repurchases which is in excess of the Fair Market
            Value of the Common Stock repurchased during such twelve month
            period), exceeds ten percent (10%) of the aggregate Fair Market
            Value of all

                                     - 3 -
<PAGE>
            shares of Common Stock outstanding on the record date for
            determining the shareholders entitled to receive such Extraordinary
            Distribution, or

                  (b) any shares of capital stock of the Corporation (other than
            shares of Common Stock), other securities of the Corporation,
            evidences of indebtedness of the Corporation or any other person or
            any other property (including shares of any subsidiary of the
            Corporation), or any combination thereof.

            As used herein "Pro Rata Repurchase" means any purchase of shares of
Common Stock by the Corporation or any subsidiary thereof, pursuant to any
tender offer or exchange offer subject to Section 13(e) of the Exchange Act or
any successor provision of law, or pursuant to any other offer available to
substantially all holders of Common Stock; provided, however, that no purchase
of shares of the Corporation or a subsidiary thereof made in open market
transactions shall be deemed a Pro Rata Repurchase.

            12. Amendment and Termination of the Plan. The Corporation, by
action of its Board of Directors, reserves the right to amend, modify or
terminate at any time this Plan, or, by action of the Committee with the consent
of the optionee, to amend, modify or terminate any outstanding Option Agreement
or Grant of Stock Appreciation Rights, except that the Corporation may not,
without further shareholder approval, increase the total number of shares as to
which options may be granted under this Plan (except increases attributable to
the adjustments authorized in Paragraph 2 hereof), change the employees or class
of employees eligible to receive options, adjust or amend the exercise price of
options or stock appreciation rights previously granted to any optionee, whether
through amendment, cancellation, replacement grants or any other means, or
materially increase the benefits accruing to participants under this Plan.
Notwithstanding the foregoing, the provisions of Section 17 shall not be amended
more than once every six months other than to comport with changes in the Code
or the Employee Retirement Income Security Act or the rules and regulations
thereunder. Moreover, no action shall be taken by the Corporation which will
impair the validity of any option or stock appreciation right then outstanding,
or which will prevent the options issued and stock appreciation rights granted
pursuant to this Plan from meeting the requirements for exemption from Section
16(b) of the Securities Exchange Act of 1934, or subsequent comparable statute,
as set forth in Rule 16b-3 under said Act or subsequent comparable rule, or
which will prevent any incentive stock option issued or to be issued under this
Plan from being an "incentive stock option" under Section 422 of the Code, or
any successor provision.

            13. Subsidiary. The term "subsidiary" as used herein shall mean any
corporation in an unbroken chain of corporations beginning with the Corporation
and ending with the employer corporation if, at the time of the granting of the
option, each of the corporations other than the employer corporation owns stock
possessing 50 percent or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.

            Settlement of stock options or stock appreciation rights exercised
by employees of subsidiaries shall be made by and at the expense of such
subsidiary. Except as prohibited by law, the Corporation shall sell and transfer
to the subsidiary, and the subsidiary shall purchase, the number of shares
necessary to settle any stock option that is exercised.

            14. Noncompetition Provision. Unless the Option Agreement specifies
otherwise, an optionee shall forfeit all unexercised stock options and stock
appreciation rights if, (i) in the opinion of the Committee, such optionee,
without the written consent of the Corporation, engages directly or indirectly
in any manner or capacity as principal, agent, partner, officer, director,
employee, or otherwise, in any business or activity competitive with the

                                     - 4 -
<PAGE>
business conducted by the Corporation or any subsidiary; or (ii) the optionee
performs any act or engages in any activity which in the opinion of the
Committee is inimical to the best interests of the Corporation.

            15. Effective Date of Plan. The Amended and Restated Plan shall be
effective upon approval by the shareholders at the 1991 annual meeting.

            16. Expiration of Plan. Options may be granted under this Plan at
any time prior to April 26, 2010, on which date the Plan shall expire but
without affecting any options then outstanding.

            17. Directors' Stock Options.

            (a) Grants. Stock options may be granted to non-employee Directors
only in accordance with the requirements of this Section 17. During each year of
service on the Board of Directors, there shall automatically be granted to each
non-employee Director an option to purchase 2,500 shares of Common Stock on such
date as the Committee or the Board shall determine; provided, however that in
the case of a newly appointed or elected director such director shall be granted
his or her initial option on the date of appointment or election if such date is
at least six months prior to the annual grant date determined by the Committee
or the Board. Notwithstanding the foregoing, no stock options shall be granted
to a director whose normal retirement under a plan or policy of the Corporation
would occur prior to six months from the date of granting such option.

            (b) Option Price. The option exercise price shall be the per share
fair market value of the outstanding shares of the Common Stock on the date such
options are granted. The Committee shall be authorized to determine such price
per share. Payment of the option price may be made in cash or in shares of
Common Stock or any combination of cash and Common Stock.

            (c) Administration. Subject to the express provisions of this
Section 17, the Committee shall have conclusive authority to construe and
interpret any stock option granted under this Section 17 and to adopt
administrative policies with respect thereto; provided, however, that no action
shall be taken which would prevent the options granted under this Section 17
from meeting the requirements for exemption from Section 16(b) of the Exchange
Act, or subsequent comparable statute, as set forth in Rule 16(b)-3 of the
Exchange Act or any subsequent comparable rule.

            (d) Option Agreement. The options granted hereunder shall be
evidenced by an option agreement, dated as of the date of the grant, which
agreement shall be in such form, consistent with the terms and requirements of
this Section 17, as shall be approved by the Committee from time to time and
executed on behalf of the Corporation by the Chief Executive Officer.

            (e) Option Period. Options granted under this Section 17 shall not
be exercisable later than 10 years from the date of grant.

            (f) Transferability. No option shall be transferable by the
non-employee Director except by will or the laws of descent and distribution
and, during the Director's lifetime, options may be exercised only by such
director or his or her guardian or legal representative.

            (g) Limitations on Exercise. Directors' stock options shall become
exercisable to the extent of 25% of the optioned shares after the first
anniversary of the date of grant, 50%

                                     - 5 -
<PAGE>
after the second anniversary, 75% after the third anniversary and 100% after the
fourth anniversary of the date of grant. To the extent an option is not
otherwise exercisable at the date of the Director's retirement under a
retirement plan or policy of the Corporation, it shall become fully exercisable
upon such retirement; provided, however, that Director stock options shall not
become exercisable under this sentence prior to the expiration of six months
from the date of grant. Options not otherwise exercisable at the time of the
death of a Director during continued service with the Corporation shall become
fully exercisable upon his death. Upon the death of a Director, such options
shall remain exercisable for a period of one year after the date of death. To
the extent an option is exercisable on the date a Director ceases to be a
Director (other than by reason of death or retirement as described above), the
option shall continue to be exercisable (subject to the original term of the
option) for a period of ninety (90) days thereafter.

                                      - 6 -

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