Document:

EX-10.4

	 
	Ferro Corporation

Supplemental Defined Contribution Plan

for Executive Employees

1

Amended and Restated

As of January 1, 2005

Ferro Corporation

Supplemental Defined Contribution Plan

for Executive Employees

Introduction

This document (this “Plan”) is the Ferro Corporation Supplemental Defined
Contribution Plan for Executive Employees. This Plan was originally adopted and effective as
of January 1, 1996, and was most recently amended and restated effective June 30, 2004.

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

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

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

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

2

Table of Contents

Page

	 	 	 
	Part A:Pre-2005 Plan

	 	A-1
	Part B:2005 Plan

	 	B-1
	Execution Page

	 	C-1

3

Ferro Corporation

Supplemental Defined Contribution Plan

for Executive Employees

Part A: Pre-2005 Plan

Overview

Establishment of Component Plan

The terms of the Plan as it existed on October 4, 2004, and as modified in this amendment and
restatement by the addition of Appendices C and D constitute the Pre-2005 component plan (the
“Pre-2005 Plan”).

The Pre-2005 Plan is reproduced in this Part A. It consists of the Plan as it was amended and
restated effective June 30, 2004, and as it has been further amended by the addition of Appendices
C and D. Appendix C changed the investment measure for crediting deemed interest under the Plan.
This change is consistent with Treasury Regulations under Code Section 409A, which provide that it
is not a material modification to change an investment measure to one which qualifies as
predetermined actual investment or a reasonable rate of interest. Appendix D modified the
definition of compensation for calculating non-elective Supplemental Matching Contributions under
the Plan (i.e., clarified that contributions are based on compensation which includes only the cash
portion of awards under the Performance Share Plan and not the entire award). This change is
consistent with Treasury Regulations, which provide that it is not a material modification to
reduce an existing benefit or right. Further, the change was a clarification for purposes of
bringing the terms of the Plan consistent with past administration, and no other rights or benefits
were provided to the Participants in exchange.

As described above, the Pre-2005 Plan has not been materially modified after October 4, 2004.

Exempt from Code Section 409A

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

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

Governs Only Pre-2005 Benefits

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

A Participant’s Pre-2005 Benefit equals the portion of his account balance which was earned
and vested as of December 31, 2004 (including any future contributions to the account, the right to
which was earned and vested as of December 31, 2004), plus any income attributable to such amounts
or to such income.

 Terminology

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

4

	 
	Ferro Corporation

Supplemental Defined Contribution Plan

for Executive Employees

Part A: Pre-2005 Plan

As Amended and Restated

June 30, 2004

(and as further modified)

5

Ferro Corporation

Supplemental Defined Contribution Plan

for Executive Employees

Introduction

This document (this “Plan”) is the Ferro Corporation Supplemental Defined
Contribution Plan for Executive Employees. This Plan was originally adopted and effective as
of January 1, 1996.

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

ARTICLE I

NAME AND PURPOSE

	1.1	 	Name. The name of this Plan is the “Ferro Corporation Supplemental Defined
Contribution Plan for Executives.”

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

	1.3	 	Purpose. The purpose of this Plan is to replace, under the conditions set forth in
this Plan, certain benefits that select management and highly compensated employees of the
Ferro Group Companies cannot receive under Ferro Corporation Savings and Stock Ownership Plan
due to limitations imposed by the Internal Revenue Code or by plan design.

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

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

ARTICLE II

DEFINITIONS AND INTERPRETATION

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

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

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

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

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

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

ARTICLE III

PARTICIPATION

	3.1	 	Eligibility. In order to be eligible to participate in this Plan, an individual must
be a Highly Compensated Employee.

	3.2	 	Participation. A Highly Compensated Employee will become a Participant in this Plan
on the January 1 immediately following the date he or she becomes a Highly Compensated
Employee.

ARTICLE IV

SUPPLEMENTAL MATCHING CONTRIBUTIONS,

SUPPLEMENTAL BASIC PENSION CONTRIBUTIONS,

AND ACCOUNTS

	4.1	 	Eligibility for Supplemental Matching Contributions. Each Plan Year a Supplemental
Matching Contribution will be credited to the Account of each Participant who is eligible. A
Participant will be eligible if the Participant:

	 	(A)	 	made the maximum 401(k) Contributions permitted under the Ferro SSOP during the
Plan Year, and

	 	(B)	 	either:

	 	(1)	 	was employed by a Ferro Group Company on the last day of the Plan
Year,

	 	(2)	 	died during the Plan Year,

	 	(3)	 	retired and began receiving pension benefits under the Ferro
Corporation Retirement Plan during the Plan Year (or, if not a participant in
the Ferro Corporation Retirement Plan, terminated employment after attaining age
55 and 5 Years of Vesting Service during the Plan Year), or

	 	(4)	 	incurred a Disability during the Plan Year.

	4.2	 	Amount of Supplemental Matching Contributions. An eligible Participant will receive
a Supplemental Matching Contribution on the last day of the Plan Year equal to A minus B,
where:

	 	(A)	 	“A” equals the amount of matching contribution that would have been contributed
to the Participant’s account under the Ferro SSOP for the Plan Year if the Participant
elected to make 401(k) Contributions equal to eight percent (8%) of Compensation and
the Code provisions allowed and did not impose a limit on such 401(k) Contributions or
matching contributions; and

	 	(B)	 	“B” equals the amount of matching contributions actually contributed to the
Participant’s account under the Ferro SSOP for the Plan Year.

	4.3	 	Eligibility for Supplemental Basic Pension Contributions. Each Plan Year a
Supplemental Basic Pension Contribution will be credited to the Account of each Participant
who is eligible. A Participant will be eligible if the Participant received a Basic Pension
Contribution under the Ferro SSOP during the Plan Year.

	4.4	 	Amount of Supplemental Basic Pension Contributions. An eligible Participant will
receive a Supplemental Basic Pension Contribution on the last day of the Plan Year equal to A
minus B, where:

	 	(A)	 	“A” equals the amount of Basic Pension Contribution that would have been
contributed to the Participant’s account under the Ferro SSOP for the Plan Year on the
basis of the Participant’s Compensation not limited by Code provisions; and

	 	(B)	 	“B” equals the amount of Basic Pension Contributions actually contributed to
the Participant’s account under the Ferro SSOP for the Plan Year.

	4.5	 	Establishment of Account. Each Ferro Group Company will establish an Account in the
name of each Participant who is employed by it on the books and records of the Ferro Group
Company. All amounts credited to the Account of any Participant or former Participant will
constitute a general, unsecured liability of such Ferro Group Company to the Participant. The
Ferro Group Company will maintain a separate Account for contributions credited to the
Participant prior to 2001 as may be necessary for the deemed investment of the Participant’s
Account as provided under Section 6.4 below.

	4.6	 	Crediting of Earnings. The Ferro Group Company will credit the Account of each
Participant who is or was its employee with earnings, gains and losses in accordance with the
deemed investment of the Supplemental Matching Contributions and Supplemental Basic Pension
Contributions as provided under Section 6.4 below.

	4.7	 	Vesting of Account. A Participant will become vested in his or her Account in
accordance with the following schedule:

6

	 	 	 	 	 
	Years of Vesting Service	 	Percentage Vested
	 
	 	 	 	 
	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	%
	 
	 	 	 	 

The prior provisions notwithstanding, a Participant who has not incurred a Termination
of Employment will be 100% vested in the Account upon the first to occur of: (a) the
Participant’s attainment of age 65, (b) the Participant’s incurring a Disability, (c) the
Participant’s death, or (d) a Change in Control.

ARTICLE V

BENEFITS; PAYMENT OF BENEFITS

	5.1	 	Date of Distribution. Distribution of the vested portion of the Participant’s
Account will be made as soon as practicable after the earlier of the Participant’s Termination
of Employment, Disability or death.

	5.2	 	Form of Distribution. Distribution will be in the form of a single lump sum payment.
The portion of the Participant’s Account deemed to be invested in the Ferro Common Stock
Account under Section 6.4 will be distributed in the form of Ferro Common Stock unless the
Participant elects to receive payment of that portion in cash. The portion of the
Participant’s Account deemed to be invested in the cash account under Section 6.4 will be
distributed in the form of cash.

	5.3	 	Valuation of Distributions. All distributions under this Plan will be based upon the
amount credited to the Participant’s Account as of the last day of the month in which occurs
the Participant’s Termination of Employment, death, or commencement of long-term disability
benefits on account of a determination of Disability under a Ferro Group Company long-term
disability plan. Such date shall be the Valuation Date for this purpose.

	5.4	 	Death. In the event of death, the Participant’s remaining vested interest in the
Account will be distributed to the Participant’s Beneficiary.

	5.5	 	Administration of Distributions. Distributions under this Plan will be made as soon
as administratively possible following receipt of notice by the Administrator of an event that
entitles a Participant or a Beneficiary to payments under this Plan and completion by the
Participant or Beneficiary of any forms required by the Administrator.

	5.6	 	Designation of Beneficiary. Subject to the rules and procedures promulgated by the
Administrator, a Participant may sign a document designating a Beneficiary or Beneficiaries.
If a Participant fails to designate any Beneficiary in accordance with the provisions of this
Section, then the Beneficiary will be deemed to be the Participant’s beneficiary under the
Ferro SSOP.

	5.7	 	Protective Distributions. If the Administrator determines, in its sole discretion,
that a Participant is not, or may not be, a member of a “select group of management or highly
compensated employees” within the meaning of Section 201(2), 301(a)(3), 401(a)(1) or
4021(b)(6) of ERISA, then the Administrator may, in its sole discretion, terminate the
Participant’s participation in this Plan, and distribute all amounts credited to the
Participant’s Account in a single lump sum payment. Any distribution under this Section will
be made at the time the Administrator determines in its sole discretion.

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

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

ARTICLE VI

RIGHTS OF PARTICIPANTS

	6.1	 	Creditor Status of Participants. The Supplemental Matching Contributions and
Supplemental Basic Pension Contributions credited to a Participant shall be merely an
unfunded, unsecured promise of the Ferro Group Company (by which the Participant is employed)
to make benefit payments in the future and shall be liabilities solely against the general
assets of such Ferro Group Company. Except as provided in Section 6.6, Ferro and the other
Ferro Group Companies shall not be required to segregate, set aside or escrow the Supplemental
Matching Contributions, Supplemental Basic Pension Contributions nor any earnings, gains and
losses credited thereon. With respect to amounts credited to any Account hereunder and any
benefits payable hereunder, a Participant and Beneficiary will have the status of general
unsecured creditors of the Ferro Group Company (by which the Participant is employed), and may
look only to that Ferro Group Company and its general assets for payment of the Account

	6.2	 	Rights with Respect to the Trust. Any trust, and any assets held thereby to assist
Ferro or any other Ferro Group Company in meeting its obligations under this Plan, will in no
way be deemed to controvert the provisions of Section 6.1 above.

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

	6.4	 	Method for Crediting Investment Return. The Ferro Group Company by which the
Participant is employed will maintain a separate Account for the Participant. A Participant’s
Account is deemed to be invested as follows.

	 	(A)	 	Post-2000 Contributions. The Supplemental Matching and Supplemental
Basic Pension Contributions credited to a Participant’s Account after December 31, 2000
will be deemed to be invested in Ferro Common Stock as of the date the contributions
are credited under the Plan. The Account will be deemed to receive all dividends
(whether in stock or cash) and stock splits which would be received if the Account was
actually invested in shares of Ferro Common Stock, and such dividends and stock splits
will be deemed to be reinvested in shares of Ferro Common Stock as of the date of their
receipt. Each investment in Ferro Common Stock will be deemed to be made at the
closing sale price of Ferro Common Stock on the New York Stock Exchange Composite Tape
(as reported in The Wall Street Journal) on the trading day of the deemed investment.

	 	(B)	 	Pre-2001 Contributions. Only Supplemental Matching Contributions were
credited under the Plan prior to 2001. The Supplemental Matching Contributions
credited to a Participant’s Account prior to 2001 will be deemed to be invested as of
the date the contributions are credited under the Plan in a cash account with a rate of
return determined by Ferro. Prior to the beginning of each Plan Year, Ferro will
determine the rate of investment credit for the following Plan Year. The prior
provisions notwithstanding, the Participant was entitled to elect in writing, during
the special election period provided in 2001, for all or a portion of such pre-2001
Supplemental Matching Contributions to be deemed to instead be invested in Ferro Common
Stock. Under any such election, the Supplemental Matching Contributions designated by
the Participant to be deemed invested in shares of Ferro Common Stock will be deemed
invested as of the date the contributions were credited under the Plan, and otherwise
will be valued and credited with dividends and stock splits, in the same manner as
described in Section 6.4(A) above.

	 	(C)	 	Periodic Adjustment of Accounts. As of each Valuation Date, the
Participant’s Account will be adjusted to reflect earnings and losses on the deemed
investments. To the extent the Account is deemed to be invested in Ferro Common Stock,
it will be credited as of each Valuation Date with hypothetical appreciation and
depreciation and earnings, as computed and determined by the Administrator based on the
value of Ferro Common Stock and its dividends, etc., as provided in Section 6.4(A)
above. To the extent the Participant’s Account is deemed to be invested in the cash
account, it will be credited as of each Valuation Date with hypothetical earnings, as
computed and determined by the Administrator using a rate of interest equal to that
determined by Ferro prior to the beginning of the Plan Year as provided in Section
6.4(B) above. The Administrator will provide each Participant with a statement showing
the balance credited to the Participant’s Account as of the last day of the preceding
Plan Year, and at such other times as the Administrator may elect.

	 	(D)	 	Investment Election Changes. Effective July 1, 2004, a Participant may
elect to change the deemed investment of all or a portion of the Participant’s Account
from a deemed investment in Ferro Common Stock to a deemed investment in the cash
account (as described in Section 6.4(A) and (B) above), and vice versa. As of the
effective date of a Participant’s investment election change, the Participant’s Account
will be valued and adjusted in accordance with the procedures set forth in the
preceding paragraph (C) to reflect the new deemed investment(s). Further, the
Participant may elect to change the initial investment of all or a portion of the
Participant’s future Supplemental Matching Contributions or future Supplemental Basic
Pension Contributions, or both. Any investment election change by a Participant must
be made in accordance with, and will be effective as provided in, procedures
established by the Plan Administrator. Notwithstanding any provision of this Section
to the contrary,

	 	(1)	 	any Participant who is subject to Ferro Common Stock ownership
requirements must satisfy those requirements both before and after any change
in the deemed investment of the Participant’s Account or of future Supplemental
Matching or Basic Pension Contributions, and

	 	(2)	 	no Participant may elect to change the deemed investment of any
portion of the Participant’s Account or of future Supplemental Matching or
Basic Pension Contributions if the change is prohibited by law or if any
liability would result to the Participant or any Ferro Group Company.

Unless and until the Participant elects to change or to direct the investment of the
Participant’s Account or future Supplemental Matching or Basic Pension Contributions
pursuant to this Section 6.4(D), those amounts will be deemed to be invested as
provided in Section 6.4(A) and (B) above.

	6.5	 	Bookkeeping Account Only. A Participant’s Account is solely for the purpose of
measuring the amounts to be paid under this Plan. The Ferro Group Companies will not fund or
secure, and will not be permitted to fund or secure, the Account in any way, and the Ferro
Group Companies’ obligation to the Participants under this Plan is solely contractual.

ARTICLE VII

TRUST

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

	7.2	 	Obligation of the Ferro Group Companies. Notwithstanding the fact that a Trust may
be established under Section 7.1, the Ferro Group Companies will remain liable for paying the
benefits under this Plan. However, any payment of benefits to a Participant or Beneficiary
made by a Trust will satisfy the appropriate Ferro Group Company’s obligation to make payment
to such person under this Plan.

	7.3	 	Trust Terms. A Trust established under Section 7.1 may contain any terms as Ferro
may determine to be necessary or desirable. Ferro may terminate or amend a Trust established
under Section 7.1 at any time, and in any manner it deems necessary or desirable, subject to
the terms of any agreement under which any Trust is established or maintained.

ARTICLE VIII

ADMINISTRATION AND CLAIMS PROCEDURE

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

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

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

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

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

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

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

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

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

	8.3	 	Information to Be Furnished to the Administrator. A Ferro Group Company will furnish
the Administrator with such data and information as it may reasonably require. The records of
a Ferro Group Company will be determinative of each Participant’s period of employment,
termination of employment, personal data, Compensation, and data regarding the contributions
made for or on behalf of the Participant under the Ferro SSOP. Participants and their
Beneficiaries will furnish to the Administrator such evidence, data or information and execute
such documents as the Administrator requests.

	8.4	 	Claim for Benefits. A Participant or Beneficiary will make all claims for payment
under this Plan in writing to the Administrator in the manner prescribed by the Administrator.
The Administrator will process each claim and determine entitlement to benefits within 90
days after the Administrator receives a completed application for benefits. If the
Administrator needs an extension of time for processing, then the Administrator will notify
the claimant before the end of the initial 90-day period. The extension notice will indicate
the special circumstances requiring an extension of time and the date as of which the
Administrator expects to render the final decision. In no event will such an extension exceed
90 days from the end of the initial period.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE IX

AMENDMENT AND TERMINATION

	9.1	 	Amendment, Modification and Termination. Subject to Section 9.4 below, this Plan may
be amended, modified or terminated by Ferro at any time, or from time to time, by action of an
appropriate Ferro officer authorized or ratified by the Board of Directors. No amendment,
modification or termination will be effective if it reduces the amounts credited to any
Participant’s Account or adversely affects the right of any Participant or Beneficiary to
receive payment of the Account as provided under this Plan, determined as of the date of the
amendment, unless an equivalent benefit is provided under another plan or program sponsored by
the Company or an Affiliate.

The prior provisions notwithstanding, this Plan may be amended to:

	 	(1)	 	reduce or eliminate the ability for contributions to be
credited to Participants under this Plan;

	 	(2)	 	reduce or eliminate the future deemed interest or earnings
credited to the amounts held in a Participant’s Account;

	 	(3)	 	comply with any law; or

	 	(4)	 	preserve the intended deferral of taxation for the benefit of
all Participants Accounts.

	9.2	 	Effect of Amendment on Distributions. If this Plan is amended to terminate the Plan
or to prohibit future contributions under the Plan, the Accounts of Participants who have not
incurred a Termination of Employment will become will be 100% vested as of the date of the
termination of the Plan or prohibition of future contributions under the Plan.

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

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

ARTICLE X

FERRO GROUP COMPANIES

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

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

ARTICLE XI

MISCELLANEOUS

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

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

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

	11.4	 	Offset. If at the time payment is to be made under this Plan the Participant or the
Beneficiary or both are indebted or obligated to a Ferro Group Company, then the payment to be
made to the Participant or the Beneficiary or both may, at the discretion of the Administrator
at the request of the Ferro Group Company, be reduced by the amount of the indebtedness or
obligation, provided, however, that an election by the Ferro Group Company not to request any
reduction will not constitute a waiver of the Ferro Group Company’s claim for such
indebtedness or obligation.

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

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

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

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

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

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

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

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

	11.10	 	Administrative Forms. All applications, elections and designations in connection
with this Plan made by a Participant or Beneficiary will become effective only when duly
executed on forms provided by the Administrator and filed with the Administrator.

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

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

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

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

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

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

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

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

	11.19	 	Overpayments and Repayments. In the event that Ferro determines that the benefits
actually paid under this Plan exceed the benefits that were properly payable to a Participant
or Beneficiary pursuant to this Plan, Ferro may exercise any legal remedies available.

	11.20	 	References to Sections of Law. References herein to the Code are to the Internal
Revenue Code of 1986, as heretofore and hereafter amended, and to similar provision of
subsequent federal law. References herein to ERISA are to the Employee Retirement Income
Security Act of 1974, as heretofore and hereafter amended, and to similar provisions of
subsequent law.

7

Definitions

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

	 	 	 
	Term	 	Meaning
	Account

	 	For each Participant the bookkeeping account maintained by Ferro to

reflect the Participant’s Supplemental Matching Contributions,

Supplemental Basic Pension Contributions, and the deemed investment

return on those amounts. A Participant’s Account will not

constitute nor be treated as a trust fund of any kind.
	Administrator

	 	As defined in Section 8.1 of this Plan.
	Affiliate

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

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

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

of an affiliated service group with the Company under Section

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

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

Restatement Date

	 	

June 30, 2004.
	Beneficial Owner

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

Exchange Act.
	Beneficiary

	 	As defined in Section 5.6 of this Plan.
	Board of Directors

	 	Ferro’s Board of Directors.
	Change in Control

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

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

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

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

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

directly or indirectly, of securities of Ferro representing

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

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

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

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

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

who has entered into an agreement or arrangement with Ferro to

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

definition) whose appointment, election, or nomination for election

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

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

directors at the beginning of the period or whose appointment,

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

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

merger or consolidation which would result in the holders of the

voting securities of Ferro outstanding immediately prior thereto

holding securities which represent immediately after such merger or

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

voting securities of either Ferro or the other entity which

survives such merger or consolidation or the parent of the entity

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

Ferro’s assets is consummated.
	Code

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

regulations or other pronouncements promulgated under that Code.
	Compensation

	 	“Compensation” as defined under the Ferro SSOP, but increased to

include amounts deferred under the Ferro Corporation Executive

Employee Deferred Compensation Plan [now known as the Ferro

Corporation Deferred Compensation Plan for Executive Employees] and

decreased to exclude awards paid under Ferro’s Performance Share

Plan (except that awards paid prior to January 1, 2007 are included

for purposes of determining Supplemental Matching Contributions),

and without regard to any provisions of the Code which limit the

amount of such compensation that can be taken into account for

purposes of determining contributions or benefits.
	
 
	 	Specifically, as of the Amendment and Restatement Date,

Compensation under this Plan means compensation (as defined in

Section 415(c)(3) of the Code) paid by a Ferro Group Company to or

on behalf of a Participant while a Participant in the Ferro SSOP

during a Plan Year, including all wages and salary, commissions,

bonuses, accrued vacation pay, 401(k) Contributions contributed

under the Ferro SSOP, elective employer contributions made on

behalf of the Participant that are not includible in gross income

under Section 125, 129, 132(f), 402(e)(3), 402(h)(1)(B), 403 and

457 of the Code, and deferred amounts under the Ferro Corporation

Executive Employee Deferred Compensation Plan [now known as the

Ferro Corporation Deferred Compensation Plan for Executive

Employees], 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, awards paid under Ferro’s

Performance Share Plan, and any other extraordinary income,

allowance, and welfare benefits. The prior sentence

notwithstanding, awards paid prior to January 1, 2007 under Ferro’s

Performance Share Plan will be included in Compensation for

purposes of determining a Participant’s Supplemental Matching

Contribution.
	Disability

	 	Any disability that qualifies a Participant for payment of benefits

under a Ferro Group Company long-term disability plan. The

determination of whether a Participant suffers a Disability will be

made by the Ferro Group Company long-term disability plan.
	ERISA

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

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

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

regulations or pronouncements issued under that Act.
	Ferro

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

any successor corporation or business organization that

subsequently assumes Ferro’s duties and obligations under this

Plan.
	Ferro Common Stock

	 	The Common Stock of Ferro, par value $1.00 per share.
	Ferro Group Companies

	 	As defined in Section 10.1 of this Plan.
	Ferro SSOP

	 	Ferro’s Savings and Stock Ownership Plan, as the same may be

amended from time to time.
	401(k) Contributions

	 	Pre-tax contributions made to the Ferro SSOP pursuant to Code

Section 401(k).
	Highly Compensated Employee

	 	An employee of a Ferro Group Company who is in Salary Grade 22 or

higher and for whom contributions under the Ferro SSOP are limited

due to the provisions of Section 401(a)(17), 401(k), 401(m), 402(g)

or 415 of the Code.
	Participant

	 	A Highly Compensated Employee of a Ferro Group Company who becomes

a Participant pursuant to Section 3.2 of this Plan. A Participant

will cease to be a Participant, and shall become a former

Participant, upon the earliest of the following:
	
 
	 	(a) Termination of Employment,
	
 
	 	(b) the date the employee ceases to be a Highly Compensated

Employee, or
	
 
	 	(c) the date the employee’s participation in this Plan is

terminated by the Administrator pursuant to Section 5.7 of this

Plan or otherwise.
	Person

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

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

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

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

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

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

(c) an underwriter temporarily holding securities pursuant to an

offering of such securities; or

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

shareholders of Ferro in substantially the same proportion as their

ownership of the stock of Ferro.
	this Plan

	 	As defined in the Introduction to this Plan.
	Plan Year

	 	The calendar year.
	Termination of Employment

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

Group Companies, including Affiliates of the foregoing, for any

reason whatsoever, whether voluntarily or involuntarily, including

by reason of retirement, death, or Disability.
	Trust

	 	The trust, if any, established pursuant to Section 7.1 of this Plan.
	Valuation Date

	 	The last day of each quarter in the Plan Year and any other date or

dates Ferro, in its sole discretion, designates from time to time.

For purposes of determining the value of a Participant’s Account

for distribution, the Valuation Date is the last day of the month

in which occurs the Participant’s Termination of Employment, death,

or commencement of long-term disability benefits on account of a

determination of Disability under a Ferro Group Company long-term

disability plan.
	Years of Vesting Service

	 	The years of vesting service with which a Participant is credited

under the Ferro SSOP.

8

Ferro Group Companies

The following are the Ferro Group Companies:

Ferro Corporation

FEM Inc.

Ferro Glass & Color Corporation

Ferro International Services, Inc.

9

Ferro Pfanstiehl Laboratories, Inc.

Amendment to Change

Definition of Compensation*

Effective June 30, 2004, the definition of “Compensation” is hereby deleted and a new
definition of “Compensation” is substituted in lieu thereof, to read as follows:

	 	 	 
	Compensation

	 	“Compensation” as defined under the Ferro SSOP, but increased to

include amounts deferred under the Ferro Corporation Executive

Employee Deferred Compensation Plan [now known as the Ferro

Corporation Deferred Compensation Plan for Executive Employees]

and decreased to exclude the awards paid under Ferro’s

Performance Share Plan (except that the cash portion of awards

paid prior to January 1, 2007 are included for purposes of

determining Supplemental Matching Contributions), and without

regard to any provisions of the Code which limit the amount of

such compensation that can be taken into account for purposes of

determining contributions or benefits.
	
 
	 	Specifically, as of the Amendment and Restatement Date,

Compensation under this Plan means compensation (as defined in

Section 415(c)(3) of the Code) paid by a Ferro Group Company to

or on behalf of a Participant while a Participant in the Ferro

SSOP during a Plan Year, including all wages and salary,

commissions, bonuses, accrued vacation pay, 401(k) Contributions

contributed under the Ferro SSOP, elective employer

contributions made on behalf of the Participant that are not

includible in gross income under Section 125, 129, 132(f),

402(e)(3), 402(h)(1)(B), 403 and 457 of the Code, and deferred

amounts under the Ferro Corporation Executive Employee Deferred

Compensation Plan [now known as the Ferro Corporation Deferred

Compensation Plan for Executive Employees], 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, awards paid under Ferro’s Performance Share Plan, and

any other extraordinary income, allowance, and welfare benefits.

The prior sentence notwithstanding, the cash portion of awards

paid prior to January 1, 2007 under Ferro’s Performance Share

Plan will be included in Compensation for purposes of

determining a Participant’s Supplemental Matching Contribution.

10

S.CONTAmendment to Change

Notional Investment Measure*

ARTICLE VI:

Effective January 1, 2006, a new Paragraph (E) is added to the end of Section 6.4 to read as
follows:

	 	(E)	 	Rate of Return of Cash Account. Effective January 1,
2006, notwithstanding any provision of Section 6.4 to the contrary, amounts
credited to a cash account under the Plan will be deemed to earn interest at a
fixed quarterly percentage, which interest rate shall equal three percent (3%)
above the 10-Year Constant Maturity Rate issued by the Board of Governors of
the Federal Reserve System for the last month of the preceding calendar
quarter, provided that Ferro determines that such rate is reasonable at the
time it is established. In the event Ferro determines that such rate is not
reasonable at the time it is established, Ferro shall instead establish a
lesser fixed quarterly percentage.

11

Ferro Corporation

Supplemental Defined Contribution Plan

for Executive Employees

Part B: 2005 Plan

Overview

Establishment of Component Plan

The provisions of the Code Section 409A component plan are set forth in this Part B (the “2005
Plan”), which is adopted and made a part of the Plan effective January 1, 2005.

Governs Benefits Subject to Code Section 409A

The 2005 Plan governs all benefits under the Plan which are not Pre-2005 Benefits (the “409A
Benefits”). This means that the 2005 Plan governs amounts which are earned or vested under the
Plan after December 31, 2004, plus any income attributable to such amounts or to such income.

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

Terminology

The terms of the 2005 Plan are identical to those of the Pre-2005 Plan except to the extent
indicated. Where provisions of the 2005 Plan have been left blank, they are identical to those of
the Pre-2005 Plan as so modified. Where provisions are not blank, the provided terms substitute in
full for the original provisions of the Pre-2005 Plan.

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

* Amendment effective June 30, 2004.

* Amendment effective January 1, 2006.

12

	 
	Ferro Corporation

Supplemental Defined Contribution Plan

for Executive Employees

Part B: 2005 Plan

13

Effective January 1, 2005Ferro Corporation

Supplemental Defined Contribution Plan

for Executive Employees

2005 Plan 

Introduction

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

Except as indicated below, the terms of the 2005 Plan are identical to those of the Pre-2005
Plan as set forth in Part A of this Plan.

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

ARTICLE I

NAME AND PURPOSE

	1.1	 	Name. The name of this Plan is the “Ferro Corporation Supplemental Defined
Contribution Plan for Executives.”

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

	1.3	 	Purpose. The purpose of this Plan is to replace, under the conditions set forth in
this Plan, certain benefits that select management and highly compensated employees of the
Ferro Group Companies cannot receive under Ferro Corporation Savings and Stock Ownership Plan
due to limitations imposed by the Internal Revenue Code or by plan design.

	1.4	 	Plan for a Select Group. This Plan is intended to cover only employees of a Ferro
Group Company who are members of a “select group of management or highly compensated
employees” as provided in Sections 201(2), 301(a)(3), 401(a)(1) and 4021(b)(6) of ERISA.

	1.5	 	Not a Funded Plan. Ferro intends that this Plan be deemed to be “unfunded” for tax
purposes as well as for purposes of Title I of ERISA.

	1.6	 	409A Compliance. This Plan is intended to comply with Section 409A of the Code and
all other applicable laws in order to have the Federal income tax effect sought for such
plans.

ARTICLE II

DEFINITIONS AND INTERPRETATION

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

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

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

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

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

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

ARTICLE III

PARTICIPATION

	3.1	 	Eligibility. In order to be eligible to participate in this Plan, an individual must
be a Highly Compensated Employee.

	3.2	 	Participation. A Highly Compensated Employee will become a Participant in this Plan
on the earlier of the January 1 or January 2 coincident with or next following the date he or
she becomes a Highly Compensated Employee.

ARTICLE IV

SUPPLEMENTAL MATCHING CONTRIBUTIONS,

SUPPLEMENTAL BASIC PENSION CONTRIBUTIONS,

AND ACCOUNTS

	4.1	 	Eligibility for Supplemental Matching Contributions.

	 	(A)	 	Pre-2006 Eligibility. Each Plan Year a Supplemental Matching
Contribution will be credited to the Account of each Participant who is eligible. A
Participant will be eligible if the Participant:

	 	(1)	 	made the maximum 401(k) Contributions permitted under the Ferro
SSOP during the Plan Year, and

	 	(2)	 	either:

	 	(a)	 	was employed by a Ferro Group Company on the last
day of the Plan Year,

	 	(b)	 	died during the Plan Year,

	 	(c)	 	retired and began receiving pension benefits under
the Ferro Corporation Retirement Plan during the Plan Year (or, if not a
participant in the Ferro Corporation Retirement Plan, terminated
employment after attaining age 55 and 5 Years of Vesting Service during
the Plan Year), or

	 	(d)	 	incurred a Disability during the Plan Year.

	 	(B)	 	Post-2005 Eligibility. Each Plan Year a Supplemental Matching
Contribution will be credited to the Account of each Participant who is eligible. A
Participant will be eligible if the Participant either:

	 	(1)	 	was employed by a Ferro Group Company on the last day of the Plan
Year,

	 	(2)	 	died during the Plan Year,

	 	(3)	 	retired and began receiving pension benefits under the Ferro
Corporation Retirement Plan during the Plan Year or terminated employment after
attaining age 55 and 5 Years of Vesting Service during the Plan Year, or

	 	(4)	 	incurred Disability during the Plan Year.

	4.2	 	Amount of Supplemental Matching Contributions.

	 	(A)	 	Pre-2006 Supplemental Matching Contributions. An eligible Participant
will receive a Supplemental Matching Contribution on the last day of the Plan Year
equal to 1 minus 2, where:

	 	(1)	 	“1” equals the amount of matching contribution that would have
been contributed to the Participant’s account under the Ferro SSOP for the Plan
Year if the Participant elected to make 401(k) Contributions equal to eight
percent (8%) of Compensation and the Code provisions allowed and did not impose
a limit on such 401(k) Contributions or matching contributions; and

	 	(2)	 	“2” equals the amount of matching contributions actually
contributed to the Participant’s account under the Ferro SSOP for the Plan
Year.

	 	(B)	 	Post-2005 Supplemental Matching Contributions. An eligible Participant
will receive a Supplemental Matching Contribution on the last day of the Plan Year
equal to 1 minus 2, where:

	 	(1)	 	“1” equals the amount of matching contribution that would have
been contributed to the Participant’s account under the Ferro SSOP for the Plan
Year if the Participant elected to make 401(k) Contributions equal to eight
percent (8%) of Compensation, and the Code provisions allowed and did not impose
a limit on such 401(k) Contributions or matching contributions; and

	 	(2)	 	“2” equals the amount of matching contribution that would have
been contributed to the Participant’s account under the Ferro SSOP for the Plan
Year if the Participant elected to make 401(k) Contributions equal to eight
percent (8%) of compensation (as defined under the Ferro SSOP), and subject to
the Code provisions that impose a limit on such 401(k) Contributions or
matching contributions.

	4.3	 	Eligibility for Supplemental Basic Pension Contributions. Each Plan Year a
Supplemental Basic Pension Contribution will be credited to the Account of each Participant
who is eligible. A Participant will be eligible if the Participant received a Basic Pension
Contribution under the Ferro SSOP during the Plan Year. The prior provisions of this Section
notwithstanding, effective January 1, 2006, a Participant will be eligible for a Supplemental
Basic Pension Contribution only if the Participant received a Basic Pension Contribution under
the Ferro SSOP during the Plan Year and either:

(A) is in Salary Grade 25 or higher on the last day of the Plan Year, or

	 	(B)	 	is a Pre-2005 Participant in Salary Grade 22 or higher on the
last day of the Plan Year.

For purposes of this Section, the term “Pre-2005 Participant” means a Participant who
became an employee of a Ferro Group Company on or after July 1, 2003 and before January 1,
2006 at a Salary Grade of 22 or higher.

	4.4	 	Amount of Supplemental Basic Pension Contributions.

	 	(A)	 	Pre-2008 Supplemental Basic Pension Contributions. An eligible
Participant will receive a Supplemental Basic Pension Contribution on the last day of
the Plan Year equal to 1 minus 2, where:

	 	(1)	 	“1” equals the amount of Basic Pension Contribution that would
have been contributed to the Participant’s account under the Ferro SSOP for the
Plan Year on the basis of the Participant’s Compensation not limited by Code
provisions; and

	 	(2)	 	“2” equals the amount of Basic Pension Contributions actually
contributed to the Participant’s account under the Ferro SSOP for the Plan Year.

	 	(B)	 	Post-2007 Supplemental Basic Pension Contributions. An eligible
Participant will receive a Supplemental Basic Pension Contribution on the last day of
the Plan Year equal to 1 minus 2, where:

	 	(1)	 	“1” equals the amount of Basic Pension Contribution that would
have been contributed to the Participant’s account under the Ferro SSOP for the
Plan Year on the basis of the Participant’s Compensation not limited by Code
provisions; and

	 	(2)	 	“2” equals the amount of Basic Pension Contributions that would
have been contributed to the Participant’s account under the Ferro SSOP for the
Plan Year on the basis of the Participant’s compensation (defined as base salary
or wages and including vacation, and holiday pay, but excluding all forms of
extra compensation such as overtime premiums, bonuses, commissions, and
incentive compensation, and including elective contributions made by the
Participant that are not includible in gross income under Sections 125, 129,
132(f), 402(e)(3), 402(h)(1)(B), 403(b) and 457 of the Code) and subject to the
Code provisions which impose limits on such compensation, for the Plan Year.

	4.5	 	Establishment of Account. Each Ferro Group Company will establish an Account in the
name of each Participant who is employed by it on the books and records of the Ferro Group
Company. All amounts credited to the Account of any Participant or former Participant will
constitute a general, unsecured liability of such Ferro Group Company to the Participant. The
Ferro Group Company will maintain a separate Account for contributions credited to the
Participant prior to 2001 as may be necessary for the deemed investment of the Participant’s
Account as provided under Section 6.4 below.

	4.6	 	Crediting of Earnings. The Ferro Group Company will credit the Account of each
Participant who is or was its employee with earnings, gains and losses in accordance with the
deemed investment of the Supplemental Matching Contributions and Supplemental Basic Pension
Contributions as provided under Section 6.4 below.

	4.7	 	Vesting of Account. A Participant will become vested in his or her Account in
accordance with the following schedule:

	 	 	 	 	 
	Years of Vesting Service	 	Percentage Vested
	 
	 	 	 	 
	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	%
	 
	 	 	 	 

The prior provisions notwithstanding, a Participant who has not incurred a Termination
of Employment will be 100% vested in the Account upon the first to occur of: (a) the
Participant’s attainment of age 65, (b) the Participant’s incurring a Disability, (c) the
Participant’s death, or (d) a Change in Control.

ARTICLE V

BENEFITS; PAYMENT OF BENEFITS

	5.1	 	Date of Distribution. Distribution of the vested portion of the Participant’s
Account will be made as soon as administratively practicable on or after the earliest of the
Participant’s Termination of Employment, Disability or death. The prior provisions
notwithstanding, distribution on account a Participant’s Termination of Employment shall not
be made until the date which is six (6) months following the Participant’s Termination of
Employment (provided, however, that in the event of the Participant’s death after Termination
of Employment, distribution shall be made on the date of death). Distribution shall, in any
event, be made by the Time Required by Law.

	5.2	 	Form of Distribution. Distribution will be in the form of a single lump sum payment.
The portion of the Participant’s Account deemed to be invested in the Ferro Common Stock
Account under Section 6.4 will be distributed in the form of Ferro Common Stock unless the
Participant elects to receive payment of that portion in cash. The portion of the
Participant’s Account deemed to be invested in the cash account under Section 6.4 will be
distributed in the form of cash.

	5.3	 	Valuation of Distributions. All distributions under this Plan will be based upon the
amount credited to the Participant’s Account as of the last day of the month in which occurs
the Participant’s Termination of Employment, death, or commencement of long-term disability
benefits on account of a determination of Disability under a Ferro Group Company long-term
disability plan. Such date shall be the Valuation Date for this purpose. No adjustment shall
be made for any delay in payment, including the six (6) month delay set forth in Section 5.1.

	5.4	 	Death. In the event of death, the Participant’s remaining vested interest in the
Account will be distributed to the Participant’s Beneficiary.

	5.5	 	Administration of Distributions. Distributions under this Plan will be made as soon
as administratively possible following receipt of notice by the Administrator of an event that
entitles a Participant or a Beneficiary to payments under this Plan and completion by the
Participant or Beneficiary of any forms required by the Administrator.

	5.6	 	Designation of Beneficiary. Subject to the rules and procedures promulgated by the
Administrator, a Participant may sign a document designating a Beneficiary or Beneficiaries.
If a Participant fails to designate any Beneficiary in accordance with the provisions of this
Section, then the Beneficiary will be deemed to be the Participant’s beneficiary under the
Ferro SSOP.

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

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

	5.9	 	Lost or Uncooperative Participant. If a Ferro Group Company or the Administrator
notifies a Participant or Beneficiary of an entitlement to an amount under this Plan and the
Participant or Beneficiary fails to request payment, to provide information or to take any
other action to receive payment of such amount, the Administrator shall, to the extent
administratively possible, direct distribution to be made on an involuntary basis to such
person or persons by the Time Required by Law. If the location of a Participant or
Beneficiary can not be determined after a prompt, reasonable good faith effort by the
Administrator, the Administrator will direct that the amount payable to the Participant or
Beneficiary be forfeited by the Time Required by Law, and no further benefit will be payable
with respect to such Participant or Beneficiary.

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

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

ARTICLE VI

RIGHTS OF PARTICIPANTS

	6.1	 	Creditor Status of Participants. The Supplemental Matching Contributions and
Supplemental Basic Pension Contributions credited to a Participant shall be merely an
unfunded, unsecured promise of the Ferro Group Company (by which the Participant is employed)
to make benefit payments in the future and shall be liabilities solely against the general
assets of such Ferro Group Company. Except as provided in Section 6.6, Ferro and the other
Ferro Group Companies shall not be required to segregate, set aside or escrow the Supplemental
Matching Contributions, Supplemental Basic Pension Contributions nor any earnings, gains and
losses credited thereon. With respect to amounts credited to any Account hereunder and any
benefits payable hereunder, a Participant and Beneficiary will have the status of general
unsecured creditors of the Ferro Group Company (by which the Participant is employed), and may
look only to that Ferro Group Company and its general assets for payment of the Account.

	6.2	 	Rights with Respect to the Trust. Any trust, and any assets held thereby to assist
Ferro or any other Ferro Group Company in meeting its obligations under this Plan, will in no
way be deemed to controvert the provisions of Section 6.1 above.

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

	6.4	 	Method for Crediting Investment Return. The Ferro Group Company by which the
Participant is employed will maintain a separate Account for the Participant. A Participant’s
Account is deemed to be invested as follows.

	 	(A)	 	Post-2000 Contributions. The Supplemental Matching and Supplemental
Basic Pension Contributions credited to a Participant’s Account after December 31, 2000
will be deemed to be invested in Ferro Common Stock as of the date the contributions
are credited under the Plan. The Account will be deemed to receive all dividends
(whether in stock or cash) and stock splits which would be received if the Account was
actually invested in shares of Ferro Common Stock, and such dividends and stock splits
will be deemed to be reinvested in shares of Ferro Common Stock as of the date of their
receipt. Each investment in Ferro Common Stock will be deemed to be made at the
closing sale price of Ferro Common Stock on the New York Stock Exchange Composite Tape
(as reported in The Wall Street Journal) on the trading day of the deemed investment.

	 	(B)	 	Pre-2001 Contributions. Only Supplemental Matching Contributions were
credited under the Plan prior to 2001. The Supplemental Matching Contributions
credited to a Participant’s Account prior to 2001 will be deemed to be invested as of
the date the contributions are credited under the Plan in a cash account with a rate of
return determined by Ferro. Prior to the beginning of each Plan Year, Ferro will
determine the rate of investment credit for the following Plan Year. The prior
provisions notwithstanding, the Participant was entitled to elect in writing, during
the special election period provided in 2001, for all or a portion of such pre-2001
Supplemental Matching Contributions to be deemed to instead be invested in Ferro Common
Stock. Under any such election, the Supplemental Matching Contributions designated by
the Participant to be deemed invested in shares of Ferro Common Stock will be deemed
invested as of the date the contributions were credited under the Plan, and otherwise
will be valued and credited with dividends and stock splits, in the same manner as
described in Section 6.4(A) above.

	 	(C)	 	Periodic Adjustment of Accounts. As of each Valuation Date, the
Participant’s Account will be adjusted to reflect earnings and losses on the deemed
investments. To the extent the Account is deemed to be invested in Ferro Common Stock,
it will be credited as of each Valuation Date with hypothetical appreciation and
depreciation and earnings, as computed and determined by the Administrator based on the
value of Ferro Common Stock and its dividends, etc., as provided in Section 6.4(A)
above. To the extent the Participant’s Account is deemed to be invested in the cash
account, it will be credited as of each Valuation Date with hypothetical earnings, as
computed and determined by the Administrator using a rate of interest equal to that
determined by Ferro prior to the beginning of the Plan Year as provided in Section
6.4(B) above. The Administrator will provide each Participant with a statement showing
the balance credited to the Participant’s Account as of the last day of the preceding
Plan Year, and at such other times as the Administrator may elect.

	 	(D)	 	Investment Election Changes. Effective July 1, 2004, a Participant may
elect to change the deemed investment of all or a portion of the Participant’s Account
from a deemed investment in Ferro Common Stock to a deemed investment in the cash
account (as described in Section 6.4(A) and (B) above), and vice versa. As of the
effective date of a Participant’s investment election change, the Participant’s Account
will be valued and adjusted in accordance with the procedures set forth in the
preceding paragraph (C) to reflect the new deemed investment(s). Further, the
Participant may elect to change the initial investment of all or a portion of the
Participant’s future Supplemental Matching Contributions or future Supplemental Basic
Pension Contributions, or both. Any investment election change by a Participant must
be made in accordance with, and will be effective as provided in, procedures
established by the Plan Administrator. Notwithstanding any provision of this Section
to the contrary,

	 	(1)	 	any Participant who is subject to Ferro Common Stock ownership
requirements must satisfy those requirements both before and after any change
in the deemed investment of the Participant’s Account or of future Supplemental
Matching or Basic Pension Contributions, and

	 	(2)	 	no Participant may elect to change the deemed investment of any
portion of the Participant’s Account or of future Supplemental Matching or
Basic Pension Contributions if the change is prohibited by law or if any
liability would result to the Participant or any Ferro Group Company.

Unless and until the Participant elects to change or to direct the investment of the
Participant’s Account or future Supplemental Matching or Basic Pension Contributions
pursuant to this Section 6.4(D), those amounts will be deemed to be invested as
provided in Section 6.4(A) and (B) above.

	 	(E)	 	Rate of Return of Cash Account. Effective January 1, 2006,
notwithstanding any provision of Section 6.4 to the contrary, amounts credited to a
cash account under the Plan will be deemed to earn interest at a fixed quarterly
percentage, which interest rate shall equal three percent (3%) above the 10-Year
Constant Maturity Rate issued by the Board of Governors of the Federal Reserve System
for the last month of the preceding calendar quarter, provided that Ferro determines
that such rate is reasonable at the time it is established. In the event Ferro
determines that such rate is not reasonable at the time it is established, Ferro shall
instead establish a lesser fixed quarterly percentage.

	6.5	 	Bookkeeping Account Only. A Participant’s Account is solely for the purpose of
measuring the amounts to be paid under this Plan. The Ferro Group Companies will not fund or
secure, and will not be permitted to fund or secure, the Account in any way, and the Ferro
Group Companies’ obligation to the Participants under this Plan is solely contractual.

ARTICLE VII

TRUST

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

	7.2	 	Obligation of the Ferro Group Companies. Notwithstanding the fact that a Trust may
be established under Section 7.1, the Ferro Group Companies will remain liable for paying the
benefits under this Plan. However, any payment of benefits to a Participant or Beneficiary
made by a Trust will satisfy the appropriate Ferro Group Company’s obligation to make payment
to such person under this Plan.

	7.3	 	Trust Terms. A Trust established under Section 7.1 may contain any terms as Ferro
may determine to be necessary or desirable; provided, however, that, no terms shall provide
for or permit funding that would result in income inclusion under Code Section 409A(b)
including, but not limited to, terms that allow for the transfer or set aside of assets
offshore in a Trust, or which provide for assets to become restricted to the provision of
benefits in connection with a change in the financial health of Ferro and Affiliates, and any
terms which so provide shall be deemed null and void. Consistent with the foregoing, Ferro
may terminate or amend a Trust established under Section 7.1 at any time, and in any manner it
deems necessary or desirable, subject to the terms of any agreement under which any Trust is
established or maintained.

ARTICLE VIII

ADMINISTRATION AND CLAIMS PROCEDURE

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

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

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

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

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

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

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

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

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

	8.3	 	Information to Be Furnished to the Administrator. A Ferro Group Company will furnish
the Administrator with such data and information as it may reasonably require. The records of
a Ferro Group Company will be determinative of each Participant’s period of employment,
termination of employment, personal data, Compensation, and data regarding the contributions
made for or on behalf of the Participant under the Ferro SSOP. Participants and their
Beneficiaries will furnish to the Administrator such evidence, data or information and execute
such documents as the Administrator requests.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE IX

AMENDMENT AND TERMINATION

	9.1	 	Amendment, Modification and Termination. Subject to Sections 9.4 and 9.5 below, this
Plan may be amended, modified or terminated by Ferro at any time, or from time to time, by
action of an appropriate Ferro officer authorized or ratified by the Board of Directors. No
amendment, modification or termination will be effective if it reduces the amounts credited to
any Participant’s Account or adversely affects the right of any Participant or Beneficiary to
receive payment of the Account as provided under this Plan, determined as of the date of the
amendment, unless an equivalent benefit is provided under another plan or program sponsored by
the Company or an Affiliate. Furthermore, no amendment, modification or termination will be
effective prior to the date permitted under Code Section 409A, which, in certain circumstances
is 12 months following the adoption of such amendment, modification or termination.

The prior provisions notwithstanding, this Plan may be amended to:

	 	(A)	 	reduce or eliminate the ability for contributions to be credited to
Participants under this Plan;

	 	(B)	 	reduce or eliminate the future deemed interest or earnings credited to the
amounts held in a Participant’s Account;

	 	(C)	 	comply with any law; or

	 	(D)	 	preserve the intended deferral of taxation for the benefit of all Participants
Accounts.

	9.2	 	Effect of Amendment on Distributions. If this Plan is amended to terminate the Plan
or to prohibit future contributions under the Plan, the Accounts of Participants who have not
incurred a Termination of Employment will become will be 100% vested as of the date of the
termination of the Plan or prohibition of future contributions under the Plan.

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

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

	9.5	 	Distribution of Benefits on Plan Termination. In the event Ferro elects to amend,
modify or terminate the Plan as provided under Section 9.1, no liquidation and payment of
benefits shall occur as a result. The prior provisions notwithstanding, Ferro may, in its
discretion, provide by amendment to the Plan for the liquidation and termination of the Plan
where:

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

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

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

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

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

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

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

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

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

ARTICLE X

FERRO GROUP COMPANIES

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

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

ARTICLE XI

MISCELLANEOUS

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

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

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

	11.4	 	Offset. If at the time payment is to be made under this Plan the Participant or the
Beneficiary or both are indebted or obligated to a Ferro Group Company, then the payment to be
made to the Participant or the Beneficiary or both may, at the discretion of the Administrator
at the request of the Ferro Group Company, be reduced by the amount of the indebtedness or
obligation, but only if:

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

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

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

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

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

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

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

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

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

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

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

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

	11.10	 	Administrative Forms. All applications, elections and designations in connection
with this Plan made by a Participant or Beneficiary will become effective only when duly
executed on forms provided by the Administrator and filed with the Administrator.

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

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

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

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

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

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

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

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

	11.19	 	Overpayments and Repayments. Benefits are provided only as set forth under the
terms of this Plan. Payments at a time or in an amount other than as set forth under the
terms of the Plan are not authorized, and Ferro will take all reasonable steps to ensure that
the amount and timing of benefit payments are in accordance with the Plan’s terms. In the
event Ferro determines that the benefits actually paid under this Plan to a Participant,
beneficiary or other person exceed the benefits that were properly payable, or were paid prior
to the proper time for payment, Ferro shall immediately demand repayment of such excess
amounts. The Participant, Beneficiary or other person is obligated to return such excess
amounts upon demand from Ferro. In the event the Participant, beneficiary or other person
fails to return the excess amounts, Ferro shall exercise any available legal remedies which
are consistent with the terms and purpose of the Plan.

	11.20	 	References to Sections of Law. References herein to the Code are to the Internal
Revenue Code of 1986, as heretofore and hereafter amended, and to similar provision of
subsequent federal law. References herein to ERISA are to the Employee Retirement Income
Security Act of 1974, as heretofore and hereafter amended, and to similar provisions of
subsequent law.

14

Definitions

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

	 	 	 
	Term	 	Meaning
	Account

	 	For each Participant the bookkeeping account maintained by Ferro to

reflect the Participant’s Supplemental Matching Contributions,

Supplemental Basic Pension Contributions, and the deemed investment

return on those amounts. A Participant’s Account will not

constitute nor be treated as a trust fund of any kind.
	Administrator

	 	As defined in Section 8.1 of this Plan.
	Affiliate

	 	Any corporation or business entity during any period during which

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

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

Restatement Date

	 	

January 1, 2005.
	Beneficial Owner

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

Exchange Act.
	Beneficiary

	 	As defined in Section 5.6 of this Plan.
	Board of Directors

	 	Ferro’s Board of Directors.
	Change in Control

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

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

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

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

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

directly or indirectly, of securities of Ferro representing

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

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

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

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

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

who has entered into an agreement or arrangement with Ferro to

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

definition) whose appointment, election, or nomination for election

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

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

directors at the beginning of the period or whose appointment,

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

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

merger or consolidation which would result in the holders of the

voting securities of Ferro outstanding immediately prior thereto

holding securities which represent immediately after such merger or

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

voting securities of either Ferro or the other entity which

survives such merger or consolidation or the parent of the entity

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

Ferro’s assets is consummated.
	Code

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

regulations or other pronouncements promulgated under that Code.
	Compensation

	 	“Compensation” as defined under the Ferro SSOP, but increased to

include amounts deferred under the Ferro Corporation Deferred

Compensation Plan for Executive Employees and decreased to exclude

the awards paid under Ferro’s Performance Share Plan (except that

the cash portion of awards paid prior to January 1, 2007 are

included for purposes of determining Supplemental Matching

Contributions), and without regard to any provisions of the Code

which limit the amount of such compensation that can be taken into

account for purposes of determining contributions or benefits.
	
 
	 	Specifically, as of the Amendment and Restatement Date,

Compensation under this Plan means compensation (as defined in

Section 415(c)(3) of the Code) paid by a Ferro Group Company to or

on behalf of a Participant while a Participant in the Ferro SSOP

during a Plan Year, including all wages and salary, commissions,

bonuses, accrued vacation pay, 401(k) Contributions contributed

under the Ferro SSOP, elective employer contributions made on

behalf of the Participant that are not includible in gross income

under Section 125, 129, 132(f), 402(e)(3), 402(h)(1)(B), 403 and

457 of the Code, and deferred amounts under the Ferro Corporation

Deferred Compensation Plan for Executive Employees, 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,

awards paid under Ferro’s Performance Share Plan, and any other

extraordinary income, allowance, and welfare benefits. The prior

sentence notwithstanding, the cash portion of awards paid prior to

January 1, 2007 under Ferro’s Performance Share Plan will be

included in Compensation for purposes of determining a

Participant’s Supplemental Matching Contribution. The foregoing

definition was effective June 30, 2004.
	Disability

	 	Any disability that qualifies a Participant for payment of benefits

under a Ferro Group Company long-term disability program, provided

that the definition of disability provided under such long-term

disability program meets one of the following requirements:
	
 
	 	(a) The Participant is unable to engage in any substantial gainful

activity by reason of any medically determinable physical or mental

impairment that can be expected to result in death or can be

expected to last for a continuous period of not less than 12

months; or
	
 
	 	(b) The Participant is, by reason of any medically determinable

physical or mental impairment that can be expected to result in

death or can be expected to last for a continuous period of not

less than 12 months, receiving income replacement benefits for a

period of not less than three months under an accident and health

plan covering employees of a Ferro Company Group.

The determination of whether a Participant suffers a Total and

Permanent Disability will be made by the Administrator.
	ERISA

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

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

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

regulations or pronouncements issued under that Act.
	Ferro

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

any successor corporation or business organization that

subsequently assumes Ferro’s duties and obligations under this

Plan.
	Ferro Common Stock

	 	The Common Stock of Ferro, par value $1.00 per share.
	Ferro Group Companies

	 	As defined in Section 10.1 of this Plan.
	Ferro SSOP

	 	Ferro’s Savings and Stock Ownership Plan, as the same may be

amended from time to time.
	401(k) Contributions

	 	Pre-tax contributions made to the Ferro SSOP pursuant to Code

Section 401(k).
	409A Benefits

	 	All benefits under the Plan which are not Pre-2005 Benefits

(generally, amounts which are earned or vested under the Plan after

December 31, 2004, plus any earnings with respect to such amounts

or to such earnings).
	2005 Plan

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

409A Benefits.
	Pre-2005 Benefits

	 	All benefits under the Plan that were earned and vested under the

Plan as of December 31, 2004, plus any earnings with respect to

such amounts or to such earnings.
	Pre-2005 Plan

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

Pre-2005 Benefits.
	Highly Compensated Employee

	 	An employee of a Ferro Group Company who is in Salary Grade 22 or

higher and for whom contributions under the Ferro SSOP are limited

due to the provisions of Section 401(a)(17), 401(k), 401(m), 402(g)

or 415 of the Code.
	Participant

	 	A Highly Compensated Employee of a Ferro Group Company who becomes

a Participant pursuant to Section 3.2 of this Plan. A Participant

will cease to be a Participant, and shall become a former

Participant, upon the earliest of the following:
	
 
	 	(a) Termination of Employment,
	
 
	 	(b) the date the employee ceases to be a Highly Compensated

Employee, or
	
 
	 	(c) the date the employee’s participation in this Plan is

terminated by the Administrator pursuant to Section 5.7 of this

Plan or otherwise.
	Person

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

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

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

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

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

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

(c) an underwriter temporarily holding securities pursuant to an

offering of such securities; or

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

shareholders of Ferro in substantially the same proportion as their

ownership of the stock of Ferro.
	Plan

	 	The Ferro Corporation Supplemental Defined Contribution Plan for

Executives, or a component plan, as appropriate.
	Plan Year

	 	The calendar year.
	Termination of Employment

	 	Effective Prior to January 1, 2008: A Participant’s cessation of

service with Ferro and the other Ferro Group Companies, including

subsidiaries and affiliates of the foregoing, for any reason

whatsoever, whether voluntarily or involuntarily, including by

reason of retirement, death, or becoming Totally and Permanently

Disabled. Notwithstanding the foregoing, for purposes of

triggering payment under Section 5.1, only such cessation of

service which constitutes a “separation from service” under Code

Section 409A shall constitute a Termination of Employment.

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

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

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

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

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

temporary employment by the government if the period of such leave

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

Participant’s right to reemployment is provided either by statute

or by contract), or

(b) a permanent decrease in the level of the Participant‘s service

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

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

occurred is determined based on whether it is reasonably

anticipated that no further services will be performed by the

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

services the Participant will perform after such date (whether as

an employee or as an independent contractor) would permanently

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

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

independent contractor) over the immediately preceding 36-month

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

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

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

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

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

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

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

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

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

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

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

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

year of the Participant in which calculation of the payment is

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

Plan would jeopardize the ability of Ferro and Affiliates to

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

Participant in which making the payment would not have such effect.

If there is a delay in payment by the Administrator other than with

the express or implied consent of the Participant, the first

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

The dispute shall be deemed resolved on the earliest date upon

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

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

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

Ferro is required to make payment pursuant to a final

non-appealable judgment or other binding decision. The foregoing

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

the Participant accepts any portion of the payment the

Administrator or Ferro willing to make (unless acceptance will

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

and makes prompt and reasonable good faith efforts to collect the

remaining portion of the payment which meet the requirements of

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

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

reasonably anticipates that the making of the payment will not

cause such violation.

In the event the payment fails to be deductible under Code Section

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

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

under Code Section 409A.
	Trust

	 	The trust, if any, established pursuant to Section 7.1 of this Plan.
	Valuation Date

	 	The last day of each quarter in the Plan Year and any other date or

dates Ferro, in its sole discretion, designates from time to time.

For purposes of determining the value of a Participant’s Account

for distribution, the Valuation Date is the last day of the month

in which occurs the Participant’s Termination of Employment, death,

or commencement of long-term disability benefits on account of a

determination of Disability under a Ferro Group Company long-term

disability plan.
	Years of Vesting Service

	 	The years of vesting service with which a Participant is credited

under the Ferro SSOP.

15

Ferro Group Companies

The following are the Ferro Group Companies:

Ferro Corporation

FEM Inc.

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

Ferro International Services, Inc.

Ferro Pfanstiehl Laboratories, Inc.

16

Execution Page

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

	 	 	 
	
 
	 	Ferro Corporation
	By:

	 	

	
 
	 	James C. Bays
	
 
	 	Vice President, General Counsel

& Secretary

17EX-10.2.1

AMENDED AND RESTATED 2004 STOCK INCENTIVE PLAN

Section 1. Purpose of the Plan

The purpose of the Amended and Restated 2004 Stock Incentive Plan (the “Plan”) is to further
the interests of Inhibitex, Inc. (the “Company”) and its stockholders by providing long-term
performance incentives to those employees, Non-Employee Directors, contractors and consultants of
the Company and its Subsidiaries who are largely responsible for the management, growth and
protection of the business of the Company and its Subsidiaries.

Section 2. Definitions

For purposes of the Plan, the following terms shall be defined as set forth below:

	 	 	 
	 

	 	 
	 

	 	      (a) “Award” means any Option, SAR, Restricted Stock, Dividend Right, Deferred Stock Unit and other

Stock-Based Awards, or other cash payments granted to a Participant under the Plan.
	 

	 	 
	 

	 	      (b) “Award Agreement” shall mean the written agreement, instrument or document evidencing an Award.
	 

	 	 
	 

	 	      (c) “Cause” shall have the meaning given such term in the Award Agreement, or if not defined in the

Participant’s Award Agreement, as defined in the employment agreement between the Participant and the Company

or any Subsidiary, but if there is no employment agreement, “Cause” shall mean: (i) an act of dishonesty

causing harm to the Company or any Subsidiary; (ii) the knowing disclosure of confidential information

relating to the Company’s or any Subsidiary’s business; (iii) impairment in the Participant’s ability to

perform the duties assigned to the Participant due to habitual drunkenness or narcotic drug addiction;

(iv) conviction of, or a plea of nolo contendere with respect to, a felony; (v) the willful refusal to

perform, or the gross neglect of, the duties assigned to the Participant; (vi) the Participant’s willful

breach of any law that, directly or indirectly, affects the Company or any Subsidiary; (vii) the

Participant’s material breach of his or her duties following a Change of Control that do not differ in any

material respect from the Participant’s duties and responsibilities during the 90-day period immediately

prior to such Change of Control (other than as a result of incapacity due to physical or mental illness),

which is demonstrably willful and deliberate on the Participant’s part, which is committed in bad faith or

without reasonable belief that such breach is in the best interests of the Company and which is not remedied

in a reasonable period after receipt of written notice from the Company or any Subsidiary specifying such

breach. If “Cause” is defined in both an employment agreement and an Award Agreement, the meaning thereof in

the Award Agreement shall control, unless the Committee otherwise determines at the time the Award is

granted.
	
 
	 	 
	 

	 	 
	 

	 	      (d) “Change of Control” means and includes each of the following: (i) the acquisition, in one or more

transactions, of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) by any person

or entity or any group of persons or entities who constitute a group (within the meaning of Section 13(d)(3)

of the Exchange Act), other than (x) a trustee or other fiduciary holding securities under an employee

benefit plan of the Company or a Subsidiary, or (y) a person who acquires such securities directly from the

Company in a privately-negotiated transaction, of any securities of the Company such that, as a result of

such acquisition, such person, entity or group either (A) beneficially owns (within the meaning of Rule l3d-3

under the Exchange Act), directly or indirectly, more than 35% of the Company’s outstanding voting securities

entitled to vote on a regular basis for a majority of the members of the Board of Directors of the Company or

(B) otherwise has the ability to elect, directly or indirectly, a majority of the members of the Board;

(ii) a change in the composition of the Board of Directors of the Company such that a majority of the members

of the Board of Directors of the Company are not Continuing Directors; (iii) the stockholders of the Company

approve a merger or consolidation of the Company with any other corporation, other than a merger or

consolidation which would result in the voting securities of the Company outstanding immediately prior

thereto continuing to represent (either by remaining outstanding or by being converted into voting securities

of the surviving entity) more than 50% of the total voting power represented by the voting securities of the

Company or such surviving entity outstanding immediately after such merger or consolidation; or (iv) the

stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the

sale or disposition by the Company of (in one or more transactions) all or substantially all of the Company’s

assets.

	 	 	 
	 

	 	      Notwithstanding the foregoing, the preceding events shall not be deemed to be a Change of Control if, prior to any

transaction or transactions causing such change, a majority of the Continuing Directors shall have voted not to treat such

transaction or transactions as resulting in a Change of Control.
	 

	 	 
	 

	 	      (e) “Code” means the Internal Revenue Code of 1986, as amended from time to time.
	 

	 	 
	 

	 	      (f) “Continuing Director” means, as of any date of determination, any member of the Board of Directors of the Company

who (i) was a member of such Board on the date which is twenty-four months prior to the date of determination or (ii) was

nominated for election or elected to such Board with the affirmative vote of a majority of the Continuing Directors who were

members of such Board at the time of such nomination or election.
	 

	 	 
	 

	 	      (g) “Deferred Stock Unit” means an Award that shall be valued in reference to the market value of a share of Stock (plus

any distributions on such Stock that shall be deemed to be re-invested when made) and may be payable in cash or Stock at a

specified date as elected by a Participant.
	 

	 	 
	 

	 	      (h) “Director Cause” shall mean (i) a final conviction of a felony involving moral turpitude or (ii) willful misconduct

that is materially and demonstrably injurious economically to the Company.
	 

	 	 
	 

	 	      (i) “Dividend Rights” means the right to receive in cash or shares of Stock, or have credited to an account maintained

under the Plan for later payment in cash or shares of Stock, an amount equal to the dividends paid with respect to a specified

number of shares of Stock (other than a Stock dividend that results in adjustments pursuant to Section 8(a)).
	 

	 	 
	 

	 	      (j) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.
	 

	 	 
	 

	 	      (k) “Fair Market Value” means, with respect to Stock, Awards, or other property, the fair market value of such Stock,

Awards, or other property determined by such methods or procedures as shall be established from time to time by the Committee

in good faith and in accordance with applicable law. Unless otherwise determined by the Committee, the Fair Market Value of

Stock shall mean the mean of the high and low sales prices of Stock on the relevant date as reported on the stock exchange or

market on which the Stock is primarily traded, or if no sale is made on such date, then the Fair Market Value is the average,

weighted inversely by the number of days from the relevant date, of the mean of the high and low sales prices of the Stock on

the next preceding day and the next succeeding day on which such sales were made, as reported on the stock exchange or market

on which the Stock is primarily traded.
	 

	 	 
	 

	 	      (l) “ISO” means any Option designated as an incentive stock option within the meaning of Section 422 of the Code.
	 

	 	 
	 

	 	      (m) “Non-Employee Director” means a member of the Board of Directors of the Company who is not an employee of the

Company.
	 

	 	 
	 

	 	      (n) “Option” means a right granted to a Participant pursuant to Sections 6(b) or 6(c) to purchase Stock at a specified

price during specified time periods. An Option granted to a Participant pursuant to Section 6(b) may be either an ISO or a

nonstatutory Option (an Option not designated as an ISO), but an Option granted pursuant to Section 6(c) may not be an ISO.
	 

	 	 
	 

	 	      (o) “Participant” shall have the meaning specified in Section 4 hereof.
	 

	 	 
	 

	 	      (p) “Performance Goal” means a goal, expressed in terms such as profits or revenue targets on an absolute or per share

basis (including, but not limited to, EBIT, EBITDA, operating income, EPS), market share targets, profitability targets as

measured through return ratios, stockholder returns, qualitative milestones, or any other financial or other measurement

deemed appropriate by the Committee, as it relates to the results of operations or other measurable progress of either the

Company as a whole or the Participant’s Subsidiary, division, or department.
	 

	 	 
	 

	 	      (q) “Performance Cycle” means the period selected by the Committee during which the performance of the Company or any

Subsidiary, or any department thereof, or any individual is measured for the purpose of determining the extent to which a

Performance Goal has been achieved.
	 

	 	 
	 

	 	      (r) “Prior Plans” means the Inhibitex, Inc. Amended and Restated 1998 Equity Ownership Plan and the Inhibitex, Inc. 2002

Non-Employee Directors Stock Option Plan.
	 

	 	 
	 

	 	      (s) “Restricted Stock” means Stock awarded to a Participant pursuant to Section 6(e) that may be subject to certain

restrictions and to a risk of forfeiture.
	 

	 	 
	 

	 	      (t) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3 as in effect from time to time.
	 

	 	 
	 

	 	      (u) “SAR” or “Stock Appreciation Right” means the right granted to a Participant pursuant to Section 6(f) to be paid an

amount measured by the appreciation in the Fair Market Value of Stock from the date of grant to the date of exercise of the

right, with payment to be made in cash, Stock or as specified in the Award, as determined by the Committee.
	 

	 	 
	 

	 	      (v) “Stock” means the common stock, $0.001 par value, of the Company.
	 

	 	 
	 

	 	      (w) “Stock-Based Award” means a right that may be denominated or payable in, or valued in whole or in part by reference

to, the market value of Stock, including but not limited to any Option, SAR, Restricted Stock or Stock granted as a bonus or

Awards in lieu of cash obligations.
	 

	 	 
	 

	 	      (x) “Subsidiary” shall mean any corporation, partnership, joint venture or other business entity of which 50% or more of

the outstanding voting power is beneficially owned, directly or indirectly, by the Company.

Section 3. Administration of the Plan

The Plan shall be administered by the Compensation Committee of the Board of Directors of the
Company (the “Committee”). Any action of the Committee in administering the Plan shall be final,
conclusive and binding on all persons, including the Company, its Subsidiaries, their employees,
Participants, consultants, contractors, persons claiming rights from or through Participants and
stockholders of the Company.

Subject to the provisions of the Plan, the Committee shall have full and final authority in
its discretion (a) to select the employees, Non-Employee Directors, contractors and consultants who
will receive Awards pursuant to the Plan (“Participants”), (b) to determine the type or types of
Awards to be granted to each Participant, (c) to determine the number of shares of Stock to which
an Award will relate, the terms and conditions of any Award granted under the Plan (including, but
not limited to, restrictions as to transferability or forfeiture, exercisability or settlement of
an Award and waivers or accelerations thereof, and waivers of or modifications to performance
conditions relating to an Award, based in each case on such considerations as the Committee shall
determine) and all other matters to be determined in connection with an Award; (d) to determine
whether, to what extent, and under what circumstances an Award may be settled, or the exercise
price of an Award may be paid, in cash, Stock, other Awards or other property, or an Award may be
canceled, forfeited, or surrendered; (e) to determine whether, and to certify that, Performance
Goals to which the settlement of an Award is subject are satisfied; (f) to correct any defect or
supply any omission or reconcile any inconsistency in the Plan, and to adopt, amend and rescind
such rules and regulations as, in its opinion, may be advisable in the administration of the Plan;
and (g) to make all other determinations as it may deem necessary or advisable for the
administration of the Plan. The Committee may delegate to executive officers of the Company the
authority, subject to such terms as the Committee shall determine, to exercise such authority and
perform such functions, including, without limitation, the selection of Participants and the grant
of Awards, as the Committee may determine, to the extent permitted under Rule 16b-3, Section 162(m)
of the Code and applicable law; provided, however, that the Committee may not delegate the
authority to grant Awards, perform such functions or make any determination affecting or relating
to the executive officers of the Company.

Section 4. Participation in the Plan

Participants in the Plan shall be employees, Non-Employee Directors, contractors and
consultants of the Company and its Subsidiaries; provided, however, that only persons who are key
employees of the Company or any subsidiary corporation (within the meaning of Section 424(f) of the
Code) may be granted Options which are intended to qualify as ISOs. In addition, Participants in
the Plan shall include all grantees of equity awards that are assumed by the Company or any
Subsidiary in connection with the acquisition of another entity.

Section 5. Plan Limitations; Shares Subject to the Plan

(a) Subject to the provisions of Section 8 hereof, the aggregate number of shares of Stock
available for issuance as Awards under the Plan shall not exceed 6,860,089 shares, increased for
shares of Stock that are represented by awards outstanding under the Prior Plans that are
subsequently forfeited, canceled or expire unexercised under the Prior Plans and any shares issued
under the Plan through the settlement, assumption or substitution of outstanding awards as a
commitment of the Company or any Subsidiary in connection with the acquisition of another entity.

(b) No Award may be granted if the number of shares to which such Award relates, when added to
the number of shares previously issued under the Plan and the number of shares which may then be
acquired pursuant to other outstanding, unexercised Awards, exceeds the number of shares available
for issuance pursuant to the Plan. If any shares subject to an Award are forfeited or such Award is
settled in cash or otherwise terminates or is settled for any reason whatsoever without an actual
distribution of shares to the Participant, any shares counted against the number of shares
available for issuance pursuant to the Plan with respect to such Award shall, to the extent of any
such forfeiture, settlement, or termination, again be available for Awards under the Plan;
provided, however, that the Committee may adopt procedures for the counting of shares relating to
any Award to ensure appropriate counting, avoid double counting, and provide for adjustments in any
case in which the number of shares actually distributed differs from the number of shares
previously counted in connection with such Award. If a Participant tenders shares (either actually,
by attestation or otherwise) to pay all or any part of the exercise price on any Option or if any
shares payable with respect to any Award are retained by the Company in satisfaction of the
Participant’s obligation for taxes, the number of shares tendered or retained shall again be
available for Awards under the Plan. Shares issued under the Plan through the settlement,
assumption or substitution of outstanding awards to grant future awards as a commitment of the
Company or any Subsidiary in connection with the acquisition of another entity shall not reduce the
maximum number of shares available for delivery under the Plan.

(c) Subject to the provisions of Section 8(a) hereof, the following additional maximums are
imposed under the Plan with respect to each fiscal year of the Company. Following the date that the
exemption from the application of Section 162(m) of the Code as described in Treas. Reg.
Section 162-27(f) (or any other Regulation having similar effect) ceases to apply to Awards,
(i) the maximum number of shares of Stock that may be granted as Awards to any Participant shall
not exceed, in the case of Awards of Options or SARs, 1,000,000 shares of Stock and in the case of
any other Stock-Based Awards, 1,000,000 shares of Stock, (ii) the maximum amount of cash or cash
payments that may be granted as Awards to any Participant, shall not exceed $2,000,000, and
(iii) the maximum number of Dividend Rights that may be granted as Awards to any Participant, shall
not exceed Dividend Rights with respect to more than 1,000,000 shares of Stock.

Section 6. Awards

(a) General. Awards may be granted on the terms and conditions set forth in this
Section 6. In addition, the Committee may impose on any Award or the exercise thereof, at the date
of grant or thereafter (subject to Section 9(a)), such additional terms and conditions, not
inconsistent with the provisions of the Plan, as the Committee shall determine, including terms
requiring forfeiture of Awards in the event of the termination of employment or other relationship
with the Company or any Subsidiary by the Participant; provided, however, that the Committee shall
retain full power to accelerate or waive any such additional term or condition as it may have
previously imposed. All Awards shall be evidenced by an Award Agreement.

(b) Options. The Committee may grant Options to Participants on the following terms
and conditions:

	 	 	 
	 

	 	 
	 

	 	      (i) The exercise price of each Option shall be determined by the

Committee at the time the Option is granted, but in the case of ISOs

the exercise price of any Option shall not be less than the Fair

Market Value of the shares covered thereby at the time the Option is

granted.
	 

	 	 
	 

	 	      (ii) The Committee shall determine the time or times at which an

Option may be exercised in whole or in part, whether the exercise

price for an Option shall be paid in cash, by the surrender at Fair

Market Value of Stock, by any combination of cash and shares of Stock,

including, without limitation, cash, Stock, other Awards, or other

property (including notes or other contractual obligations of

Participants to make payment on a deferred basis), the means or

methods of payment, including by “attestation” and through “cashless

exercise” arrangements, to the extent permitted by applicable law, and

the methods by which, or the time or times at which, Stock will be

delivered or deemed to be delivered to Participants upon the exercise

of such Option.
	 

	 	 
	 

	 	      (iii) The terms of any Option granted under the Plan as an ISO

shall comply in all respects with the provisions of Section 422 of the

Code, including, but not limited to, the requirement that no ISO shall

be granted more than ten years after the effective date of the Plan.

(c) Director Options.

	 	 	 
	 

	 	 
	 

	 	      (i) Each person who is elected for the first time to be a

Non-Employee Director by the Board of Directors of the Company or by

the stockholders of the Company shall receive, on the day after the

date of his or her initial election, an automatic grant of an Option

to purchase 20,000 shares of Stock. The date on which an Option is

granted under this Section and Section 6(c)(ii) to a specified

Non-Employee Director shall constitute the date of grant of such

Option (the “Date of Grant”).
	 

	 	 
	 

	 	      (ii) Each Non-Employee Director shall also receive an automatic

annual grant of an Option to purchase 7,500 (18,000 in the case of the

Chairman of the Board of the Company) shares of Stock on February 1 of

each year. The first annual Option grant shall be pro-rated from the

date of commencement of such service for any director who commences

serving as such on a day other than February 1st of the prior year.

The Options granted pursuant to Section 6(c)(i) and this

Section 6(c)(ii) shall be referred to herein as “Director Options.”
	 

	 	 
	 

	 	      (iii) The exercise price per share of all Director Options shall

be the Fair Market Value per share of Stock on the Date of Grant. Each

Director Option, to the extent vested, may be exercised in whole or in

part, the exercise price may be paid in cash or by the surrender at

Fair Market Value of Stock (either actually, by attestation or

otherwise), or by any combination of cash and shares of Stock, and

shall be subject to such other terms and provisions as the Committee

shall determine.
	 

	 	 
	 

	 	      (iv) Director Options shall vest as provided in an Award

Agreement, provided that (a) Options granted pursuant to

Section 6(c)(ii) shall vest in full on the first anniversary of the

Date of Grant and (b) in no event shall Options granted pursuant to

Section 6(c)(i) vest over a period of more than three (3) years after

the Date of Grant or at a rate slower than 33% for each completed year

after the Date of Grant.
	 

	 	 
	 

	 	      (v) Except as otherwise expressly set forth in an Award

Agreement and except as set forth below and as provided in

Section 7(h), if a Non-Employee Director shall voluntarily or

involuntarily cease to serve as a director of the Company or if a

Non-Employee Director’s service shall terminate on account of death or

disability, the unvested Director Options of such Non-Employee

Director shall terminate immediately and the vested Director Options

of such Non-Employee Director shall terminate one year following the

first day that the Non-Employee Director is no longer such a director;

provided that if such Non-Employee Director is removed for Director

Cause, the Director Options shall terminate immediately. In no event

may the Non-Employee Director, or his or her guardian, conservator,

executor or administrator, as the case may be, exercise a Director

Option of such Non-Employee Director after the end of the original

term of such option.

(d) Deferred Stock Units. The Committee is authorized to award Deferred Stock Units to
Participants in lieu of payment of a bonus or a Stock-Based Award or cash payment granted under the
Plan if so elected by a Participant under such terms and conditions as the Committee shall
determine. Settlement of any Deferred Stock Units shall be made in cash or shares of Stock.

(e) Restricted Stock. The Committee is authorized to grant Restricted Stock to
Participants on the following terms and conditions:

	 	 	 
	 

	 	 
	 

	 	      (i) Restricted Stock awarded to a Participant shall be subject

to a “substantial risk of forfeiture” within the meaning of Section 83

of the Code, and such restrictions on transferability and other

restrictions and Performance Goals for such periods as the Committee

may establish. Additionally, the Committee shall establish at the time

of such Award, which restrictions may lapse separately or in

combination at such times, under such circumstances, or otherwise, as

the Committee may determine.
	 

	 	 
	 

	 	      (ii) Restricted Stock shall be forfeitable to the Company by the

Participant upon termination of employment during the applicable

restricted periods. The Committee, in its discretion, whether in an

Award Agreement or anytime after an Award is made, may accelerate the

time at which restrictions or forfeiture conditions will lapse, or may

remove any Performance Goal requirement upon the death, disability,

retirement or otherwise of a Participant, whenever the Committee

determines that such action is in the best interests of the Company.
	 

	 	 
	 

	 	      (iii) Restricted Stock granted under the Plan may be evidenced

in such manner as the Committee shall determine. If certificates

representing Restricted Stock are registered in the name of the

Participant, such certificates may bear an appropriate legend

referring to the terms, conditions and restrictions applicable to such

Restricted Stock.
	 

	 	 
	 

	 	      (iv) Subject to the terms and conditions of the Award Agreement,

the Participant shall have all the rights of a stockholder with

respect to shares of Restricted Stock awarded to him or her,

including, without limitation, the right to vote such shares and the

right to receive all dividends or other distributions made with

respect to such shares. If any such dividends or distributions are

paid in Stock, the Stock shall be subject to restrictions and a risk

of forfeiture to the same extent as the Restricted Stock with respect

to which the Stock has been distributed.

(f) Stock Appreciation Rights. The Committee is authorized to grant SARs to
Participants on the following terms and conditions:

	 	 	 
	 

	 	 
	 

	 	      (i) A SAR shall confer on the Participant to whom it is granted

a right to receive, upon exercise thereof, the excess of (A) the Fair

Market Value of one share of Stock on the date of exercise over

(B) the grant price of the SAR as determined by the Committee as of

the date of grant of the SAR.
	 

	 	 
	 

	 	      (ii) The Committee shall determine the time or times at which a

SAR may be exercised in whole or in part, the method of exercise,

method of settlement, form of consideration payable in settlement,

method by which Stock will be delivered or deemed to be delivered to

Participants, whether or not a SAR shall be in tandem with any other

Award, and any other terms and conditions of any SAR.

(g) Cash Payments. The Committee is authorized, subject to limitations under
applicable law, to grant to Participants cash payments, whether awarded separately or as a
supplement to any Stock-Based Award. The Committee shall determine the terms and conditions of such
Awards.

(h) Dividend Rights. The Committee is authorized to grant Dividend Rights to Participants
on the following terms and conditions:

	 	 	 
	 

	 	 
	 

	 	      (i) Dividend Rights may be granted either separately or in

tandem with any other Award. If any Dividend Rights are granted in

tandem with any other Award, such Dividend Rights shall lapse, expire

or be forfeited simultaneously with the lapse, expiration, forfeiture,

payment or exercise of the Award to which the Dividend Rights are

tandemed. If Dividend Rights are granted separately, such Dividend

Rights shall lapse, expire or be terminated at such times or under

such conditions as the Committee shall establish.
	 

	 	 
	 

	 	      (ii) The Committee may provide that the dividends attributable

to Dividend Rights may be paid currently or the amount thereof may be

credited to a Participant’s Plan account. The dividends credited to a

Participant’s account may be credited with interest, or treated as

used to purchase at Fair Market Value Stock or other property in

accordance with such methods or procedures as the Committee shall

determine and shall be set forth in the Award Agreement evidencing

such Dividend Rights. Any crediting of Dividends Rights may be subject

to restrictions and conditions as the Committee may establish,

including reinvestment in additional shares of Stock or Stock

equivalents. The Committee may provide that the payment of any

Dividend Rights shall be made, or once made, may be forfeited under

such conditions as the Committee, in its sole discretion, may

determine.

(i) Other Stock-Based Awards. The Committee is authorized, subject to limitations
under applicable law, to grant to Participants such other Stock-Based Awards, in addition to those
provided in Sections 6(b), (c), (d), (e) and (f) hereof, as deemed by the Committee to be
consistent with the purposes of the Plan. The Committee shall determine the terms and conditions of
such Awards. Stock delivered pursuant to an Award in the nature of a purchase right granted under
this Section 6(i) shall be purchased for such consideration and paid for at such times, by such
methods, and in such forms, including, without limitation, cash, Stock, other Awards, or other
property, as the Committee shall determine.

Section 7. Additional Provisions Applicable to Awards

(a) Stand-Alone, Additional, Tandem, and Substitute Awards. Awards granted under the
Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem
with, or in substitution for, any other Award granted under the Plan or any award granted under any
other plan of the Company or any Subsidiary, or any business entity acquired by the Company or any
Subsidiary, or any other right of a Participant to receive payment from the Company or any
Subsidiary. If an Award is granted in substitution for another Award or award, the Committee shall
require the surrender of such other Award or award in consideration for the grant of the new Award.
Awards granted in addition to, or in tandem with other Awards or awards may be granted either as of
the same time as, or a different time from, the grant of such other Awards or awards. The per share
exercise price of any Option, grant price of any SAR or the purchase price of any Award conferring
a right to purchase Stock:

	 	 	 
	 

	 	 
	 

	 	      (i) granted in substitution for an outstanding Award or award,

shall be not less than the lesser of (A) the Fair Market Value of a

share of Stock at the date such substitute Award is granted or

(B) such Fair Market Value at that date, reduced to reflect the Fair

Market Value at that date of the Award or award required to be

surrendered by the Participant as a condition to receipt of the

substitute Award; or
	 

	 	 
	 

	 	      (ii) retroactively granted in tandem with an outstanding Award

or award, shall not be less than the lesser of the Fair Market Value

of a share of Stock at the date of grant of the later Award or at the

date of grant of the earlier Award or award.

(b) Exchange and Buy Out Provisions. Subject to stockholder approval, the Committee
may at any time offer to exchange or buy out any previously granted Award for a payment in cash,
Stock, other Awards (subject to Section 7(a)), or other property based on such terms and conditions
as the Committee shall determine and communicate to a Participant at the time that such offer is
made.

(c) Performance Goals. The right of a Participant to exercise or receive a grant or
settlement of any Award, and the timing thereof, may be subject to such Performance Goals as may be
specified by the Committee.

(d) Term of Awards. The term of each Award shall, except as provided herein, be for
such period as may be determined by the Committee; provided, however, that in no event shall the
term of any Option (other than a Director Option), SAR or Dividend Right exceed a period of ten
years from the date of its grant; provided that in the case of any ISO, the term of the Option
shall be such shorter period as may be applicable under Section 422 of the Code and in the case of
any Director Option, the term of the Option shall not exceed six years from the Date of Grant.

(e) Form of Payment. Subject to the terms of the Plan and any applicable Award
Agreement, payments or transfers to be made by the Company or a Subsidiary upon the grant or
exercise of an Award may be made in such forms as the Committee shall determine, including, without
limitation, cash, Stock, other Awards, or other property, and may be made in a single payment or
transfer, or on a deferred basis. The Committee may, whether at the time of grant or at any time
thereafter prior to payment or settlement, permit (subject to any conditions as the Committee may
from time to time establish) a Participant to elect to defer receipt of all or any portion of any
payment of cash or Stock that would otherwise be due to such Participant in payment or settlement
of an Award under the Plan. (Such payments may include, without limitation, provisions for the
payment or crediting of reasonable interest in respect of deferred payments credited in cash, and
the payment or crediting of Dividend Rights in respect of deferred amounts credited in Stock
equivalents.) The Committee, in its discretion, may accelerate any payment or transfer upon a
change of control as defined by the Committee. The Committee may also authorize payment upon the
exercise of an Option by net issuance or other cashless exercise methods.

(f) Loan Provisions. With the consent of the Committee, and subject at all times to
laws and regulations and other binding obligations or provisions applicable to the Company,
including but not limited to the Sarbanes-Oxley Act of 2002, the Company may make, guarantee, or
arrange for a loan or loans to a Participant with respect to the exercise of any Option or other
payment in connection with any Award, including the payment by a Participant of any or all federal,
state, or local income or other taxes due in connection with any Award. Subject to such
limitations, the Committee shall have full authority to decide whether to make a loan or loans
hereunder and to determine the amount, terms, and provisions of any such loan or loans, including
the interest rate to be charged in respect of any such loan or loans, whether the loan or loans are
to be with or without recourse against the borrower, the terms on which the loan is to be repaid
and the conditions, if any, under which the loan or loans may be forgiven.

(g) Awards to Comply with Section 162(m). The Committee may (but is not required to)
grant an Award pursuant to the Plan to a Participant that is intended to qualify as
“performance-based compensation” under Section 162(m) of the Code (a “Performance-Based Award”).
The right to receive a Performance-Based Award, other than Options and SARs granted at not less
than Fair Market Value, may vary from Participant to Participant and Performance-Based Award to
Performance-Based Award, and shall be conditional upon the achievement of Performance Goals that
have been established by the Committee in writing not later than the earlier of (i) 90 days after
the beginning of the Performance Cycle and (ii) the date by which no more than 25% of a Performance
Cycle has elapsed. Before any compensation pursuant to a Performance-Based Award (other than
Options and SARs granted at not less than Fair Market Value) is paid, the Committee shall certify
in writing that the Performance Goals applicable to the Performance-Based Award were in fact
satisfied.

(h) Change of Control. In the event of a Change of Control of the Company, all Awards
granted under the Plan (including Performance-Based Awards) that are still outstanding and not yet
vested or exercisable or which are subject to restrictions shall vest as provided in the Award
Agreement. If an Award to any employee is assumed or replaced by an acquiring company and the
employment of the Participant with the acquiring company is terminated or terminates for any reason
other than Cause within 18 months of the date of the Change of Control, then the assumed or
replaced Awards that are outstanding on the day prior to the day the Participant’s employment
terminates or is terminated shall become vested in the Participant or free of any restrictions as
provided in the Award Agreement.

Section 8. Adjustments upon Changes in Capitalization

(a) In the event that the Committee shall determine that any stock dividend, recapitalization,
forward split or reverse split, reorganization, merger, consolidation, spin-off, combination,
repurchase or share exchange, or other similar corporate transaction or event, affects the Stock or
the book value of the Company such that an adjustment is appropriate in order to prevent dilution
or enlargement of the rights of Participants under the Plan, then the Committee shall, in such
manner as it may deem equitable, adjust any or all of (i) the number and kind of shares of Stock
which may thereafter be issued in connection with Awards, (ii) the number and kind of shares of
Stock issuable in respect of outstanding Awards, (iii) the aggregate number and kind of shares of
Stock available under the Plan, and (iv) the exercise price, grant price, or purchase price
relating to any Award or, if deemed appropriate, make provision for a cash payment with respect to
any outstanding Award; provided, however, in each case, that no adjustment shall be made that would
cause the Plan to violate Section 422(b)(1) of the Code with respect to ISOs or that would
adversely affect the status of a Performance-Based Award as “performance-based compensation” under
Section 162(m) of the Code.

(b) In addition, the Committee is authorized to make adjustments in the terms and conditions
of, and the criteria included in, Awards, including any Performance Goals, in recognition of
unusual or nonrecurring events (including, without limitation, events described in the preceding
paragraph) affecting the Company or any Subsidiary, or in response to changes in applicable laws,
regulations, or accounting principles. Notwithstanding the foregoing, no adjustment shall be made
in any outstanding Performance-Based Awards to the extent that such adjustment would adversely
affect the status of the Performance-Based Award as “performance-based compensation” under
Section 162(m) of the Code.

Section 9. General Provisions

(a) Changes to the Plan and Awards. The Board of Directors of the Company may amend,
alter, suspend, discontinue, or terminate the Plan or the Committee’s authority to grant Awards
under the Plan without the consent of the Company’s stockholders or Participants, except that any
such amendment, alteration, suspension, discontinuation, or termination shall be subject to the
approval of the Company’s stockholders within one year after such Board action if such stockholder
approval is required by any federal or state law or regulation or the rules of any stock exchange
or automated quotation system on which the Stock may then be listed or quoted, and the Board may
otherwise, in its discretion, determine to submit other such changes to the Plan to the
stockholders for approval; provided, however, that without the consent of an affected Participant,
no amendment, alteration, suspension, discontinuation, or termination of the Plan may materially
and adversely affect the rights of such Participant under any Award theretofore granted and any
Award Agreement relating thereto. The Committee may waive any conditions or rights under, or amend,
alter, suspend, discontinue, or terminate, any Award theretofore granted and any Award Agreement
relating thereto; provided, however, that without the consent of an affected Participant, no such
amendment, alteration, suspension, discontinuation, or termination of any Award may materially and
adversely affect the rights of such Participant under such Award.

The foregoing notwithstanding, any Performance Goal or other performance condition specified
in connection with an Award shall not be deemed a fixed contractual term, but shall remain subject
to adjustment by the Committee, in its discretion at any time in view of the Committee’s assessment
of the Company’s strategy, performance of comparable companies, and other circumstances, except to
the extent that any such adjustment to a performance condition would adversely affect the status of
a Performance-Based Award as “performance-based compensation” under Section 162(m) of the Code.

(b) No Right to Award or Employment. Except as provided in Section 6(c), no employee,
Non-Employee Director, contractor or consultant or other person shall have any claim or right to
receive an Award under the Plan. Neither the Plan nor any action taken hereunder shall be construed
as giving any employee any right to be retained in the employ of the Company or any Subsidiary or
be viewed as requiring the Company or Subsidiary to continue the services of any contractor or
consultant for any period.

(c) Taxes. The Company or any Subsidiary is authorized to withhold from any Award
granted, any payment relating to an Award under the Plan, including from a distribution of Stock or
any payroll or other payment to a Participant amounts of withholding and other taxes due in
connection with any transaction involving an Award, and to take such other action as the Committee
may deem advisable to enable the Company and Participants to satisfy obligations for the payment of
withholding taxes and other tax obligations relating to any Award. This authority shall include
authority to withhold or receive Stock or other property and to make cash payments in respect
thereof in satisfaction of a Participant’s tax obligations. Withholding of taxes in the form of
shares of Stock from the profit attributable to the exercise of any Option shall not occur at a
rate that exceeds the minimum required statutory federal and state withholding rates.

(d) Limits on Transferability; Beneficiaries. No Award or other right or interest of a
Participant under the Plan shall be pledged, encumbered, or hypothecated to, or in favor of, or
subject to any lien, obligation, or liability of such Participants to, any party, other than the
Company or any Subsidiary, or assigned or transferred by such Participant otherwise than by will or
the laws of descent and distribution, and such Awards and rights shall be exercisable during the
lifetime of the Participant only by the Participant or his or her guardian or legal representative.
Notwithstanding the foregoing, the Committee may, in its discretion, provide that Awards or other
rights or interests of a Participant granted pursuant to the Plan (other than an ISO) be
transferable, without consideration, to immediate family members (i.e., children, grandchildren or
spouse), to trusts for the benefit of such immediate family members and to partnerships in which
such family members are the only partners. The Committee may attach to such transferability feature
such terms and conditions as it deems advisable. In addition, a Participant may, in the manner
established by the Committee, designate a beneficiary (which may be a person or a trust) to
exercise the rights of the Participant, and to receive any distribution, with respect to any Award
upon the death of the Participant. A beneficiary, guardian, legal representative or other person
claiming any rights under the Plan from or through any Participant shall be subject to all terms
and conditions of the Plan and any Award Agreement applicable to such Participant, except as
otherwise determined by the Committee, and to any additional restrictions deemed necessary or
appropriate by the Committee.

(e) No Rights to Awards; No Stockholder Rights. No Participant shall have any claim to
be granted any Award under the Plan, and there is no obligation for uniformity of treatment of
Participants. No Award shall confer on any Participant any of the rights of a stockholder of the
Company unless and until Stock is duly issued or transferred to the Participant in accordance with
the terms of the Award.

(f) Securities Law Requirements.

	 	 	 
	 

	 	 
	 

	 	      (i) No Award granted hereunder shall be exercisable if the

Company shall at any time determine that (a) the listing upon any

securities exchange, registration or qualification under any state or

federal law of any Stock otherwise deliverable upon such exercise, or

(b) the consent or approval of any regulatory body or the satisfaction

of withholding tax or other withholding liabilities, is necessary or

appropriate in connection with such exercise. In any of the events

referred to in clause (a) or clause (b) above, the exercisability of

such Awards shall be suspended and shall not be effective unless and

until such withholding, listing, registration, qualifications or

approval shall have been effected or obtained free of any conditions

not acceptable to the Company in its sole discretion, notwithstanding

any termination of any Award or any portion of any Award during the

period when exercisability has been suspended.
	 

	 	 
	 

	 	      (ii) The Committee may require, as a condition to the right to

exercise any Award that the Company receive from the Participant, at

the time any such Award is exercised, vests or any applicable

restrictions lapse, representations, warranties and agreements to the

effect that the shares are being purchased or acquired by the

Participant for investment only and without any present intention to

sell or otherwise distribute such shares and that the Participant will

not dispose of such shares in transactions which, in the opinion of

counsel to the Company, would violate the registration provisions of

the Securities Act of 1933, as then amended, and the rules and

regulations thereunder. The certificates issued to evidence such

shares shall bear appropriate legends summarizing such restrictions on

the disposition thereof.

(g) Termination. Unless the Plan shall theretofore have been terminated, the Plan
shall terminate on December 31, 2013, and no Options under the Plan shall thereafter be granted.

(h) Prior Plan Names. This Plan was previously referred to as the 2002 Inhibitex, Inc.
Stock Incentive Plan and then the 2004 Stock Incentive Plan before its amendment and restatement.

(i) Fractional Shares. The Company will not be required to issue any fractional common
shares pursuant to the Plan. The Committee may provide for the elimination of fractions and for the
settlement of fractions in cash.

(j) Discretion. In exercising, or declining to exercise, any grant of authority or
discretion hereunder, the Committee may consider or ignore such factors or circumstances and may
accord such weight to such factors and circumstances as the Committee alone and in its sole
judgment deems appropriate and without regard to the effect such exercise, or declining to exercise
such grant of authority or discretion, would have upon the affected Participant, any other
Participant, any employee, the Company, any Subsidiary, any stockholder or any other person.

(k) Adoption of the Plan and Effective Date. The Plan shall be adopted by the Board of
Directors of the Company and shall be effective as of such date.

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