Document:

<PAGE>
                                                                   Exhibit 10.72

[EXECUTION COPY]

================================================================================

                                   LIBBEY INC.

             WAIVER AND THIRD AMENDMENT TO PARENT GUARANTY AGREEMENT

                                       and

                      AMENDMENT TO NOTE PURCHASE AGREEMENT

                          DATED AS OF DECEMBER 29, 2005

Re:           Parent Guaranty Agreement dated as of March 31, 2003,
               Note Purchase Agreement dated as of March 31, 2003
                                       and
       $25,000,000 3.69% Senior Notes, Series 2003A-1, due March 31, 2008
       $55,000,000 5.08% Senior Notes, Series 2003A-2, due March 31, 2013
    $20,000,000 Floating Rate Senior Notes, Series 2003B, due March 31, 2010

================================================================================

<PAGE>

                                   LIBBEY INC.

             WAIVER AND THIRD AMENDMENT TO PARENT GUARANTY AGREEMENT

                                      and

                      AMENDMENT TO NOTE PURCHASE AGREEMENT

                          DATED AS OF DECEMBER 29, 2005

Re:           Parent Guaranty Agreement dated as of March 31, 2003,
                Note Purchase Agreement dated as of March 31, 2003
                                       and
       $25,000,000 3.69% Senior Notes, Series 2003A-1, due March 31, 2008
       $55,000,000 5.08% Senior Notes, Series 2003A-2, due March 31, 2013
    $20,000,000 Floating Rate Senior Notes, Series 2003B, due March 31, 2010

To the institutional investors (the "Noteholders")
Named in Schedule I attached hereto

Ladies and Gentlemen:

     Reference is made to the Parent Guaranty Agreement dated as of March 31,
2003, as amended to date (the "Guaranty Agreement") between Libbey Inc., a
Delaware corporation (the "Guarantor"), and each of the institutional investors
party thereto, pursuant to which the Guarantor has guaranteed the obligations of
Libbey Glass Inc., a Delaware corporation (the "Company"), under the Note
Purchase Agreement dated as of March 31, 2003 (the "Note Purchase Agreement")
between the Company and the institutional investors party thereto, under and
pursuant to which the Company originally issued and sold its 3.69% Senior Notes,
Series 2003A-1, due March 31, 2008 in an aggregate principal amount of
$25,000,000 (the "Series A-1 Notes"), 5.08% Senior Notes, Series 2003A-2, due
March 31, 2013 in an aggregate principal amount of $55,000,000 (the "Series A-2
Notes"), and Floating Rate Senior Notes, Series 2003B, due March 31, 2010 in an
aggregate principal amount of $20,000,000 (the "Series 2003B Notes," and
together with the Series A-1 Notes and the Series A-2 Notes, the "Notes"). Terms
used but not otherwise defined herein shall have the same meaning as ascribed to
such terms in the Guaranty Agreement.

     The Company and the Guarantor hereby agree with you in this Waiver and
Third Amendment to Parent Guaranty Agreement and Amendment to Note Purchase
Agreement (this or the "Agreement") as follows:

<PAGE>

                                    ARTICLE 1

                                     WAIVER

     Section 1.1. Waiver of Section 5.1(a) (Limitation on Debt). Compliance by
the Guarantor with Section 5.1(a) of the Guaranty Agreement is hereby waived
for the period beginning September 30, 2005 and ending December 31, 2005,
provided that the Consolidated Leverage Ratio for the period ending December
31, 2005 shall not exceed 4.5 to 1.00.

     Section 1.2. Limited Waiver; Reservation of Rights. The Guarantor
acknowledges and agrees that the waiver granted in Section 1.1 is valid only for
the specific purpose for which it is being given and shall not in any way
obligate any Noteholder to agree to any additional waivers of the provisions of
the Guaranty Agreement or the Note Purchase Agreement, and, except as so waived,
shall not constitute or operate as a waiver of any Noteholder's rights under the
Note Purchase Agreement to exercise remedies resulting from any Default or Event
of Default which may now exist or which may occur in the future.

                                    ARTICLE 2

                      AMENDMENT OF NOTE PURCHASE AGREEMENT

     Section 2.1. Amendment of Notes (Form of Notes). From and after the date of
this Agreement, automatically, and without further action on the part of either
the Noteholders or the Company, the Notes shall be amended and restated in their
entirety to read as set forth in Exhibits 1(a), 1(b) and 1(c) hereto. Accrued
and unpaid interest outstanding in respect of any of the Notes as of the
effective date shall be due and payable on the next succeeding interest payment
date applicable to such amended and restated Notes. The term "Notes" as used
herein and in the Note Purchase Agreement shall include each such amended and
restated Note and any such notes issued in substitution therefore pursuant to
Section 13 of the Note Purchase Agreement.

     Section 2.2. Amendment of Section 8 (Prepayment of Notes). Section 8 of the
Note Purchase Agreement shall be and is hereby amended by the addition thereto
of a new Section 8.5 which shall read as follows:

               "Section 8.5. Additional Fee; Pro Rata Prepayments. (a) In the
          event the Notes shall not have been prepaid in full on or prior to May
          31, 2006, on June 1, 2006, the Company shall pay to each Noteholder an
          amount equal to 25 basis points on the unpaid principal amount of each
          Note held by such Noteholder which shall remain outstanding on such
          date.

               (b) Notwithstanding anything to the contrary set forth in this
          Section 8, neither the Company nor any Note Party shall prepay any
          Note (other than at the stated maturity of such Note)

                                       -2-

<PAGE>

          unless such prepayment is made pro rata among all Notes then
          outstanding."

     Section 2.3. Amendment of Section 11(c) (Events of Default). Section 11(c)
of the Note Purchase Agreement shall be and is hereby amended in its entirety to
read as follows:

               "(c) the Company defaults in the performance of or compliance
          with any term contained in Sections 8.5 or 10.1 or the Parent
          Guarantor defaults in the performance of or compliance with any term
          contained in Sections 4.9, 4.10, 5.1, 5.2, 5.3, 5.4, 5.5 or 5.10 of
          the Parent Guaranty Agreement; or"

     Section 2.4. Amendment of Section 11(d) (Events of Default). Section 11(d)
of the Note Purchase Agreement shall be and is hereby amended in its entirety to
read as follows:

               "(d) the Company defaults in the performance of or compliance
          with any term contained herein or any other Note Party defaults in the
          performance of or compliance with any term contained in any Note
          Document executed by such Note Party (other than those referred to in
          paragraphs (a), (b) and (c) of this Section 11) and such default is
          not remedied within thirty (30) days after the earlier of (i) a Senior
          Financial Officer obtaining actual knowledge of such default and (ii)
          the Company or the Parent Guarantor receiving written notice of such
          default from any holder of a Note (any such written notice to be
          identified as a "notice of default" and to refer specifically to this
          paragraph (d) of Section 11); or"

     Section 2.5. Amendment of Section 11(g) (Events of Default). Section 11(g)
of the Note Purchase Agreement shall be and is hereby amended by the addition
thereto of a new clause (iv) immediately following clause (iii) which shall read
as follows:

     ", (iv) any Event of Default shall exist under the Bank Credit Agreement;
or (v) any "Guarantor Event of Default" shall exist under the Guaranty executed
by the Guarantor and the Company in connection with the Vitrocrisa Credit
Agreement; or"

     Section 2.6. Amendment of Section 15.1 (Expenses). Section 15.1 of the Note
Purchase Agreement shall be and is hereby amended by the addition of new
paragraph which shall read as follows:

               "Without limiting the foregoing, the Company agrees to pay all
          reasonable fees of the Collateral Agent in connection with the
          preparation, execution and delivery of the Intercreditor Agreement and
          the Security Documents and the transactions contemplated thereby,
          including but not limited to reasonable attorneys fees and to pay to
          the Collateral Agent from time to time

                                       -3-

<PAGE>

          all reasonable fees, and expenses and such indemnities and other
          amounts as shall be required to be paid by the Company to the
          Collateral Agent in accordance with the terms of the Intercreditor
          Agreement and the Security Documents. The Company shall also pay the
          reasonable fees and expenses of Chapman and Cutler LLP in connection
          with the negotiation and review of the Security Documents and
          Intercreditor Agreement on behalf of the holders of the Notes and (ii)
          the reasonable out of pocket expenses of the Noteholders incurred in
          the course of negotiating the Intercreditor Agreement and the Security
          Documents."

     Section 2.7. Amendment of Schedule B (Definitions). Schedule B of the Note
Purchase Agreement shall be and is hereby amended by amending the definitions
hereinafter set forth in their entirety to read as follows:

               "Adjusted LIBOR Rate" for each Interest Period shall be a rate
          per annum equal to LIBOR for such Interest Period plus (i) 1.05%
          during the portion of any Interest Period ending on or prior to
          December 29, 2005, and (ii) 1.55% during all or any portion of any
          Interest Period after December 29, 2005; provided that such addition
          to LIBOR shall be 2.05% if the Consolidated Leverage Ratio was greater
          than 4.25 to 1 as of the last day of the most recently ended fiscal
          quarter (beginning with the fiscal quarter ending December 31, 2005)
          provided further that such addition to LIBOR shall be decreased to
          1.55% if the Leverage Ratio is equal to or less than 4.25 to 1 as of
          the last day of any subsequent fiscal quarter. Any increase or
          decrease in the addition to LIBOR shall be in effect from and
          including the fifth Business Day following the date on which the
          Compliance Certificate is delivered to the Noteholders for the
          immediately preceding fiscal quarter of the Guarantor and based upon
          the Leverage Ratio as set forth in such Compliance Certificate. In the
          event no Compliance Certificate shall be delivered on or prior to the
          date such Compliance Certificate is required to be delivered to the
          Noteholders in accordance with Section 3.2(a) of the Guaranty
          Agreement then until such time as the applicable Compliance
          Certificate is delivered, the addition to LIBOR shall be 2.05% from
          the fifth Business Day after any holder gives notice to the Guarantor
          that it has not received such Compliance Certificate by the due date.
          Except for adjustments in the addition to LIBOR in respect of any
          fiscal quarter as provided in the preceding sentence, after December
          29, 2005, the addition to LIBOR shall be 1.55%.

               "Default Rate" means with respect to the Notes of any Series,
          that rate of interest that is the greater of (i) 2% per annum above
          the applicable rate of interest required to be paid in

                                       -4-

<PAGE>

          accordance with clause (a) of the first paragraph of the Notes of such
          Series or (ii) 2% over the rate of interest publicly announced by Bank
          of America, N.A. in New York, New York as its "base" or "prime" rate."

     Section 2.8. Amendment of Schedule B (Definitions). Schedule B of the Note
Purchase Agreement shall be and is hereby amended by the addition thereto of the
following definitions which shall read as follows:

               "Compliance Certificate" means the certificate required to be
          delivered to the holders of the Notes by a Senior Financial Officer
          pursuant to Section 3.2(a) of the Parent Guaranty Agreement.

               "Series 2003 A-1 Applicable Rate" means the rate per annum equal
          to (i) 3.69% on or prior to December 29, 2005, and (ii) 4.19% after
          December 29, 2005; provided that the Series 2003 A-1 Applicable Rate
          shall be 4.69% if the Consolidated Leverage Ratio was greater than
          4.25 to 1 as of the last day of the most recently ended fiscal quarter
          (beginning with the fiscal quarter ending December 31, 2005) provided
          further that such Series 2003 A-1 Applicable Rate shall be decreased
          to 4.19% if the Leverage Ratio is equal to or less than 4.25 to 1 as
          of the last day of any subsequent fiscal quarter. Any increase or
          decrease in the Series 2003 A-1 Applicable Rate shall be in effect
          from and including the fifth Business Day following the date on which
          the Compliance Certificate is delivered to the Noteholders for the
          immediately preceding fiscal quarter of the Guarantor and based upon
          the Leverage Ratio as set forth in such Compliance Certificate. In the
          event no Compliance Certificate shall be delivered on or prior to the
          date such Compliance Certificate is required to be delivered to the
          Noteholders in accordance with Section 3.2(a) of the Guaranty
          Agreement then until such time as the applicable Compliance
          Certificate is delivered the Series 2003 A-1 Notes shall bear interest
          at the rate of 4.69% from the fifth Business Day after any holder
          gives notice to the Guarantor that it has not received such Compliance
          Certificate by the due date. Except for adjustments in the interest
          rate for the Series 2003 A-1 Notes in respect of any fiscal quarter as
          provided in the preceding sentence, after December 29, 2005, the
          interest rate borne by the Series 2003 A-1 Notes shall be 4.19% per
          annum.

               "Series 2003 A-2 Applicable Rate" means the rate per annum equal
          to (i) 5.08% on or prior to December 29, 2005, and (ii) 5.58% after
          December 29, 2005; provided that the Series 2003 A-2 Applicable Rate
          shall be 6.08% if the Consolidated

                                       -5-

<PAGE>

          Leverage Ratio was greater than 4.25 to 1 as of the last day of any
          fiscal quarter (beginning with the fiscal quarter ending December 31,
          2005) provided further that such Series 2003A-2 Applicable Rate shall
          be 5.58% if the Leverage Ratio is less than or equal to 4.25 to 1 as
          of the last day of any subsequent fiscal quarter. Any increase or
          decrease in the Series 2003A-2 Applicable Rate shall be in effect from
          and including the fifth Business Day following the date on which the
          Compliance Certificate is delivered to the Noteholders for the
          immediately preceding fiscal quarter of the Guarantor and based upon
          the Leverage Ratio as set forth in such Compliance Certificate. In the
          event no Compliance Certificate shall be delivered on or prior to the
          date such Compliance Certificate is required to be delivered to the
          Noteholders in accordance with Section 3.2(a) of the Guaranty
          Agreement then until such time as the applicable Compliance
          Certificate is delivered the Series 2003A-2 Notes shall bear interest
          at the rate of 6.08% from the fifth Business Day after any holder
          gives notice to the Guarantor that it has not received such Compliance
          Certificate by the due date. Except for adjustments in the interest
          rate for the Series 2003 A-2 Notes in respect of any fiscal quarter as
          provided in the preceding sentence, after December 29, 2005, the
          interest rate borne by the Series 2003 A-2 Notes shall be 5.58% per
          annum.

               "Third Amendment Agreement" means that certain Waiver and Third
          Amendment to Guaranty Agreement and Amendment to Note Purchase
          Agreement dated as of December 29, 2005 between the Guarantor, the
          Company and the Purchasers, in respect of this Agreement."

                                    ARTICLE 3

                         AMENDMENT OF GUARANTY AGREEMENT

     Section 3.1. Amendment of Section 3 (Information as to Guarantor). Section
3 of the Guaranty Agreement shall be and is hereby amended by the addition of
new Sections 3.4, 3.5, 3.6, 3.7, and 3.8 which shall read as follows:

               "Section 3.4. Cash Flow Forecasts. After May 31, 2006, the
          Guarantor shall deliver to each Institutional Investor on the second
          Business Day of each week a 13-week rolling cash flow forecast in form
          reasonably acceptable to the Required Holders; and

               Section 3.5. Intercreditor Agreement. (i) Concurrently with the
          delivery to the Collateral Agent, the Guarantor shall deliver to each
          Institutional Investor copies of all notices,

                                       -6-

<PAGE>

          schedules, certificates and reports delivered to the Collateral Agent
          pursuant to or in connection with any Security Document or with
          respect to the Collateral, (ii) not less than 5 Business Days prior to
          execution thereof, a copy of (x) each proposed amendment to the
          Security Documents, (y) each document or agreement which, if executed
          and delivered would become an additional Security Document, (iii)
          promptly following execution thereof, one copy of each of the
          documents referred to in the preceding clause (ii), and (iv) such
          other items pertaining to the Collateral as may be required in
          accordance with the terms of the Security Documents.

               Section 3.6. Bank Credit Agreement. Concurrently with the
          delivery to the Administrative Agent, the Guarantor shall deliver to
          each Institutional Investor (i) copies of all financial and other
          information and certificates (including Compliance Certificates (as
          defined in the Bank Credit Agreement)) and reports delivered to the
          Administrative Agent pursuant to the Bank Credit Agreement or with
          respect to the Collateral, (ii) a summary of the material terms of any
          proposed amendment to the Bank Credit Agreement not later than the
          date a copy of such proposed amendment is delivered to the Lenders
          under the Bank Credit Agreement, and (iii) promptly following
          execution thereof, one copy of each of the documents referred to in
          the preceding clause (ii).

               Section 3.7. Status of Refinancing. During the last week of each
          month (beginning January, 2006) the Guarantor will hold a conference
          call during normal business hours with Noteholders which are
          Institutional Investors to discuss the status of the Guarantor's
          efforts to refinance the Notes.

               Section 3.8. Financial Advisor. In the event that the Notes have
          not been prepaid in full on or prior to May 31, 2006, the Noteholders
          shall engage Conway, Del Genio, Gries & Co. LLC, or another financial
          advisor selected by the Required Holders, to perform, inter alia, a
          detailed review of the Guarantor's business plan, financial
          statements, projections and strategies, such review to commence no
          later than June 9, 2006. No later than August 9, 2006 such financial
          advisor shall provide to the Noteholders a written report satisfactory
          in scope and detail to the Noteholders setting forth the results of
          such review. Such financial advisor shall also provide such other
          financial advisory services relating to the business and financial
          condition of the Note Parties and their Subsidiaries as shall be
          requested by the Noteholders and agreed between the Noteholders and
          such financial advisor. During the engagement of such financial
          advisor the Guarantor

                                       -7-

<PAGE>

          shall provide the financial advisor with such financial and other
          information (to the extent that such information is reasonably
          available or can be reasonably obtained by the Guarantor) regarding
          the Guarantor, its Subsidiaries, affiliates and investments as shall
          be reasonably requested by the financial advisor, including reasonable
          access to the books and records of the Guarantor, its Subsidiaries,
          affiliates and investments during normal business hours; provided that
          (i) in the case of commercially sensitive information (e.g. customer
          lists and channel of distribution information), no such information
          shall be furnished to the financial advisor unless the financial
          advisor shall have first agreed in writing with the Guarantor that
          only summaries created in consultation with the Company of such
          information shall be distributed to the Noteholders, (ii) no such
          financial and other information or access to books and records shall
          be furnished for stockholders of the Guarantor, and (iii) such
          financial information and access to the books and records of other
          affiliates and investments shall be furnished only to the extent
          permitted by any such affiliate or the terms of any instrument
          pursuant to which any such investment has been made; provided,
          further, that in the case of this clause (iii) the Company shall use
          commercially reasonable efforts to ensure that such information can be
          furnished to the financial advisor. During the engagement of such
          financial advisor, which shall continue for so long as the Required
          Holders shall deem appropriate, the Noteholders shall request the
          financial advisor to use its best efforts to coordinate its work with
          the work of any financial advisor retained by the Banks under the Bank
          Credit Agreement to avoid redundant work product. All fees (in an
          amount not to exceed $150,000 per month) and reasonable out of pocket
          expenses of the financial advisor retained pursuant to this Section
          3.8 shall be paid by the Guarantor or the Company."

     Section 3.2. Amendment of Section 4.6 (Designation of Subsidiaries).
Section 4.6 of the Guaranty Agreement shall be and is hereby amended by the
addition of a new paragraph which shall read as follows:

               "Notwithstanding the foregoing, no direct or indirect Subsidiary
          of the Guarantor shall be designated or considered an Unrestricted
          Subsidiary without the consent of the Required Holders other than
          Unrestricted Subsidiaries as of December 29, 2005 (which Unrestricted
          Subsidiaries are Libbey Asia Limited and Libbey Glassware (China) Co.,
          Ltd.)."

     Section 3.3. Amendment of Section 4 (Additional Covenants). Section 4 of
the Guaranty Agreement shall be and is hereby amended by the addition of new
Sections 4.9 and 4.10 to read as follows:

                                       -8-

<PAGE>

               "Section 4.9. Collateral. To secure full and complete payment and
          performance of the Notes, the Guarantor shall execute and deliver or
          cause to be executed and delivered the documents described below
          covering the property and collateral described in this Section 4.9
          (which, together with any other property and collateral which may now
          or hereafter secure the Notes or any part thereof, is sometimes herein
          called the "Collateral") as follows:

               (a) On or before January 31, 2006, the Guarantor will, and will
          cause each of the Company and the Subsidiary Guarantors to, grant to
          Collateral Agent, for the benefit of the Secured Parties, a first
          priority security interest in substantially all of its personal
          property, including but not limited to, accounts, chattel paper,
          instruments, documents, books, records, inventory, machinery,
          equipment, trademarks, patents, copyrights, other intellectual
          property, payment intangibles, other general intangibles, commercial
          tort claims, Equity Interests in its Subsidiaries (provided that not
          more than 65% of the Equity Interests of any Pledged Foreign
          Subsidiary shall be required to be subject to such security interest
          except as otherwise provided in the Security Agreement), other
          investment property and other personal property described in the
          Security Agreement, whether now owned or hereafter acquired, and all
          products and cash and noncash proceeds thereof, pursuant to the
          Security Agreement and the Security Documents, which shall be in form
          and substance reasonably satisfactory to the Required Holders.

               (b) On or before January 31, 2006, the Guarantor will, and will
          cause the Company and each Subsidiary Guarantor to deliver to the
          Administrative Agent certificates of insurance and endorsements to
          insurance policies naming the Collateral Agent as loss payee/mortgagee
          and/or additional insured, as applicable, with respect to all
          Collateral and as may be required by Section 4.2 of this Agreement (to
          the extent available) and the Security Documents.

               (c) On or before January 31, 2006, the Guarantor will, and will
          cause the Company and each Subsidiary Guarantor, to deliver to the
          Administrative Agent counterparts of the Intercreditor Agreement
          executed by the Note Parties, each of the Secured Parties and the
          Collateral Agent.

               (d) On or before March 31, 2006, the Guarantor will, and will
          cause the Company and each Subsidiary Guarantor to, grant to
          Collateral Agent, for the benefit of the Secured Parties, a

                                       -9-

<PAGE>

          first priority security interest in all of its Real Property pursuant
          to the Mortgages and other Security Documents related to the Mortgages
          and the Real Property, to include, without limitation, loan or
          mortgagee title commitments, flood certificates, and tax affidavits,
          together with payment of all related taxes and fees, all of which
          shall be in form and substance reasonably satisfactory to the Required
          Holders.

               (e) To the extent that the real property located at Dane,
          Wisconsin, owned in connection with Traex Company has not been sold on
          or before June 30, 2006, the Guarantor will, and will cause the
          Company and any applicable Subsidiary Guarantor, to grant a lien in
          such real property in the manner contemplated by Section 4.9(d) on or
          prior to July 15, 2006.

               (f) On or before January 31, 2006, certificates of resolutions or
          other action, incumbency certificates and/or other certificates of
          Responsible Officers of each Note Party, all in form and substance
          reasonably satisfactory to the Required Holders, which establish the
          identity and verify the authority and capacity of each Responsible
          Officer thereof authorized to act as a Responsible Officer in
          connection with the Note Documents to which such Note Party is a
          party.

               (g) On January 31, 2006, the Guarantor shall cause special
          counsel to the Guarantor to deliver to the Noteholders an opinion of
          counsel (which shall be in customary form) with respect to the
          Security Documents executed and delivered on or prior to January 31,
          2005 together with such board resolutions, officer's certificates,
          corporate and other documents and opinions of counsel relative to such
          Security Documents as the Required Holders shall reasonably request.
          Upon the earlier of (x) May 31, 2006 or (y) as soon as practicable
          (but in no event more than thirty days) after the occurrence of an
          Event of Default the Guarantor shall deliver to the Noteholders an
          opinion of counsel in the applicable foreign jurisdiction (which shall
          be in customary form) with respect to Security Documents executed and
          delivered on or prior to such date which pertain to the Pledged
          Foreign Subsidiaries.

               (h) The Guarantor will, and will cause each of the Company and
          the Subsidiary Guarantors to execute and deliver and cause to be
          executed and delivered such further documents and instruments as the
          Required Holders reasonably deem necessary or desirable to evidence
          and perfect their Liens in the Collateral as set forth in the Security
          Documents.

                                      -10-

<PAGE>

               Section 4.10. Additional Subsidiaries. (a) At any time following
          January 31, 2006, within ten days after the time that any Person
          becomes a Domestic Subsidiary as a result of the creation of such
          Subsidiary, an Acquisition permitted by Section 5.9 of this Agreement
          or otherwise, (i) if such Domestic Subsidiary is a Restricted Material
          Subsidiary, it shall become a party to the Security Agreement to
          secure obligations held by the Secured Parties, pursuant to joinder
          agreements in form and substance satisfactory to the Required Holders,
          (ii) 100% of such Subsidiary's Equity Interests shall be pledged to
          secure the obligations held by the Secured Parties under the Security
          Documents, and (iii) the Noteholders shall receive such board
          resolutions, officer's certificates, corporate and other documents and
          opinions of counsel as the Required Holders shall reasonably request
          in connection with the actions described in clauses (i) and (ii)
          above.

               (b) Within thirty days after the time that any Person becomes a
          Pledged Foreign Subsidiary as a result of the creation of such
          Subsidiary, an Acquisition permitted by Section 5.9 of this Agreement
          or otherwise, 65% of such Subsidiary's Equity Interests shall be
          pledged to secure the obligations held by the Secured Parties under
          the Security Documents. Subject to the limitations set forth in
          Section 4.9(g), the opinions and certificates required by Section
          4.9(g) shall also be furnished to the Noteholders concurrently with
          such pledge."

     Section 3.4. Amendment of Section 5.1 (Limitation on Debt). Section 5.1 of
the Guaranty Agreement shall be and is hereby amended in its entirety to read as
follows:

               "Section 5.1. Limitation on Debt. (a) The Company will not at
          anytime permit the Leverage Ratio, to exceed the ratio set forth below
          opposite the applicable period:

<TABLE>
<CAPTION>
      FISCAL QUARTER ENDING            RATIO
      ---------------------            -----
<S>                                <C>
December 31, 2005                  4.50 to 1.00
January 1, 2006 to and including   4.85 to 1.00
September 30, 2006
October 1, 2006 to and including   4.00 to 1.00
December 31, 2006
January 1, 2007 and at all times   3.25 to 1.00
thereafter
</TABLE>

                                      -11-

<PAGE>

               (b) From and after the date of the Third Amendment Agreement, the
          Guarantor and its Restricted Subsidiaries shall not incur any Debt
          (including Debt incurred or assumed in connection with any
          Acquisition) other than (i) Debt incurred under the Bank Credit
          Agreement not to exceed at any time $195,000,000 in an aggregate
          principal amount outstanding; provided that no more than $105,000,000
          in aggregate principal amount shall be borrowed under the Bank Credit
          Agreement by Libbey Europe B.V., (ii) Debt of Libbey Europe B.V. and
          Royal Leerdam B.V. incurred pursuant to a Euro working capital
          facility not to exceed at any time 10,000,000 Euros in an aggregate
          principal amount outstanding, (iii) Debt of the Company incurred
          pursuant to a working capital facility not to exceed at any time
          $10,000,000 in an aggregate principal amount outstanding, (iv) a
          Guaranty of Debt of Libbey Glassware (China) Co., Ltd. relating to a
          construction facility not to exceed at any time $35,000,000 (or the
          equivalent amount in foreign currency) in an aggregate principal
          amount outstanding, (v) Intercompany Indebtedness; provided, that in
          the case of Intercompany Indebtedness consisting of a loan or advance
          to a Note Party, each such loan or advance shall be unsecured and
          shall be subordinated to the indefeasible payment in full of all of
          such Note Party's obligations pursuant to this Agreement and the other
          Note Documents, (vi) other Debt not to exceed at any time $1,000,000
          in an aggregate amount outstanding and (vii) debt in respect of
          capital leases, Synthetic Lease Obligations and purchase money
          obligations for fixed or capital assets in an aggregate principal
          amount at any one time outstanding not to exceed $10,000,000."

     Section 3.5. Amendment of Section 5.2 (Consolidated Interest Coverage
Ratio). Section 5.2 of the Guaranty Agreement shall be and is hereby amended in
its entirety to read as follows:

               "Section 5.2. Consolidated Interest Coverage Ratio. The Guarantor
          will not permit the Consolidated Interest Coverage Ratio to be less
          than 3.00 to 1.00 as of the end of the most recently ended fiscal
          quarter."

     Section 3.6. Amendment to Section 5.3 of Guaranty Agreement. Section 5.3 of
the Guaranty Agreement shall be amended by (i) amending subparagraph (h) to add
the parenthetical "(including the Liens of Capitalized Leases and Synthetic
Lease Obligations)" immediately following the word "Lien" in the first line of
such subparagraph (h), and (ii) adding the following proviso at the end of
subparagraph (m) thereof and a new subparagraph (n) immediately following
subparagraph (m):

                                      -12-

<PAGE>

          "provided, further, that (i) no Liens shall be created, incurred or
          assumed under this Section 5.3(m) if, at such time or after giving
          effect thereto, any Default or Event of Default shall have occurred
          and be continuing, and (ii) from the date of the Third Amendment, the
          Guarantor will not and will not permit any of its Restricted
          Subsidiaries to create, incur or assume any Liens under this
          subsection (m) securing Debt in excess of $1,000,000; and

               (n) the Liens of the Security Documents so long as the Notes
          shall be equally and ratably secured thereby and the Intercreditor
          Agreement shall be in full force and effect."

     Section 3.7. Amendment of Section 5.4 (Sale of Assets). Section 5.4 of the
Guaranty Agreement shall be and is hereby amended in its entirety to read as
follows:

               "Section 5.4. Sales of Assets. The Guarantor will not, and will
          not permit any Restricted Subsidiary to, make any Disposition or enter
          into any agreement to make any Disposition (other than agreements
          making the applicable Disposition subject to the prior payment in full
          of the Notes, together with the Make-Whole Amount, if any, or to being
          consented to by the Required Holders), except:

               (a) Dispositions of obsolete or worn out property, whether now
          owned or hereafter acquired, in the ordinary course of business;

               (b) Dispositions of inventory in the ordinary course of business;

               (c) Dispositions of equipment or real property to the extent that
          such property is exchanged for credit against the purchase price of
          similar replacement property owned by the Guarantor or a Restricted
          Subsidiary;

               (d) Dispositions by the Guarantor and its Restricted Subsidiaries
          of property pursuant to sale-leaseback transactions; provided that (i)
          the aggregate Net Proceeds from all such sale and leaseback
          transactions shall not exceed $10,000,000 in any fiscal year, and (ii)
          to the extent that any such Net Proceeds shall be applied to reduce
          amounts outstanding under the Bank Credit Agreement, such amounts
          shall be shared with the Noteholders in the manner provided in the
          Intercreditor Agreement;

               (e) Dispositions permitted by Section 5.5 of this Agreement;

                                      -13-

<PAGE>

               (f) Dispositions by any Note Party to the Company or any
          Guarantor;

               (g) Dispositions of property from Restricted Subsidiaries that
          are not Note Parties to Restricted Subsidiaries which are not
          Guarantors and Dispositions of property by Restricted Subsidiaries
          which are not Guarantors to any Note Party;

               (h) Dispositions that are Investments or dividends or
          distributions which in each case are (i) in the ordinary course of
          business, (ii) consistent with past practice, and (iii) not prohibited
          by this Agreement;

               (i) Dispositions of the business presently conducted by the Traex
          Company; provided that to the extent that any such Net Proceeds shall
          be applied to reduce amounts outstanding under the Bank Credit
          Agreement, such amounts shall be shared with the Noteholders in the
          manner provided in the Intercreditor Agreement;

               (j) Dispositions of equipment by the Guarantor and its Restricted
          Subsidiaries to Libbey Glassware (China) Co., Ltd. in which no Net
          Proceeds are received by the Company or any Restricted Subsidiary; and

               (k) other Dispositions of property not otherwise permitted
          hereunder; provided that (i) the consideration received for such
          assets shall have a value at least equal to the fair market value of
          such assets, in each case as determined in good faith by the Guarantor
          or the applicable Restricted Subsidiary; and (ii) if either (x) the
          amounts of the Net Proceeds of such Dispositions in any fiscal year of
          the Guarantor exceeds $5,000,000 or (y) the sum of (A) Net Proceeds
          received pursuant to Dispositions permitted by clause (i) of this
          Section 5.4, (B) the fair market value of equipment transferred
          pursuant to clause (j) of this Section 504 and (C) the Net Proceeds
          received in any fiscal year pursuant to this clause (k) exceeds
          $40,000,000, then in the case of either (x) or (y), the Aggregate
          Commitments under the Bank Credit Agreement and the aggregate
          principal amount of the Notes shall be reduced as provided in the
          Intercreditor Agreement.

          Notwithstanding the foregoing, neither the Guarantor nor any
          Subsidiary will sell any Accounts Receivable, except for any such
          Accounts Receivable in respect of which the debtor is involved in
          insolvency proceedings, (or transfer or otherwise dispose of

                                      -14-

<PAGE>

          Accounts Receivable except in the ordinary course of business) or
          create any Receivables Subsidiary."

     Section 3.8. Amendment of Section 5 (Additional Covenants). Section 5 of
the Guaranty Agreement shall be and is hereby amended by the addition of a new
Sections 5.9 and 5.10 to read as follows:

               "Section 5.9. Acquisitions. The Company will not, nor will it
          suffer or permit any of its Subsidiaries to, make any Acquisition
          unless, after giving effect to such Acquisition (the "subject
          Acquisition"), all of the following requirements are satisfied: (i)
          such Acquisitions are undertaken in accordance with all applicable
          laws, (ii) the prior, effective written consent or approval to such
          Acquisition of the board of directors or equivalent governing body of
          the acquiree is obtained, (iii) the Guarantor provides the Noteholders
          with a certificate at least five days prior to the consummation of
          such Acquisition evidencing that, after giving effect to such
          Acquisition, the Guarantor is in compliance with Section 5.1 and 5.2
          (as determined on a Pro Forma Basis as of the last day of the
          preceding fiscal quarter), (iv) after giving effect to such
          Acquisition, the Guarantor and its Restricted Subsidiaries remain in
          compliance with Section 5.7, and (v) such Investments (not including
          the Acquisition of Crisal-Cristalaria Automatica, S.A. and Vitrocrisa
          Holding S. de R.L. de C.V.) shall not exceed $5,000,000 in the
          aggregate over the term of this Agreement.

               Section 5.1O. Bank Credit Agreement. The Guarantor will cause the
          Company to at all times keep in full force and effect the Bank Credit
          Agreement and cause the outstanding Commitments thereunder to
          aggregate $195,000,000 less any reductions in such Commitments
          resulting from the application of proceeds of Collateral in accordance
          with the Intercreditor Agreement."

     Section 3.9. Amendment of Exhibit A (Definitions). Exhibit A of the
Guaranty Agreement shall be and is hereby amended by the addition thereto of the
following definitions which shall read as follows:

               "Accounts Receivable" means presently existing and hereafter
          arising or acquired accounts receivable, general intangibles, choses
          in action and other forms of obligations and receivables relating in
          any way to Inventory or arising from the sale of Inventory or the
          rendering of services or howsoever otherwise arising, and, with
          respect to any of the foregoing receivables or obligations, (a) all of
          the interest of the Guarantor or any of its Subsidiaries in the goods
          (including returned goods) the sale of which gave rise to such
          receivable or obligation after the

                                      -15-

<PAGE>

          passage of title thereto to any obligor, (b) all other Liens and
          property subject thereto from time to time purporting to secure
          payment of such receivables or obligations, (c) all guarantees,
          insurance, letters of credit and other agreements or arrangements of
          whatever character from time to time supporting or securing payment of
          any such receivables or obligations, and (d) all records relating to
          any of the foregoing and all proceeds and products of any of the
          foregoing.

               "Acquisition" means any transaction or series of related
          transactions for the purpose of or resulting, directly or indirectly,
          in (a) the acquisition by the Guarantor or a Subsidiary of all or
          substantially all of the assets of a Person, or of any business or
          division of a Person, (b) the acquisition by the Guarantor or a
          Subsidiary of in excess of 50% of the capital stock, partnership
          interests, membership interests or equity of any Person (other than a
          Person already a Subsidiary), or otherwise causing any Person to
          become a Subsidiary, or (c) a merger or consolidation or any other
          combination by the Company or a Subsidiary with another Person (other
          than a Person that is the Guarantor or a Subsidiary), provided that
          the Company or such Subsidiary is the surviving entity.

               "Administrative Agent" means Bank of America; N.A. in its
          capacity as administrative agent under any of the Loan Documents, (as
          defined in the Bank Credit Agreement) or any permitted successor
          administrative agent.

               "Attributable Indebtedness" means, on any date, (a) in respect of
          any capital lease of any Person, the capitalized amount thereof that
          would appear on a balance sheet of such Person prepared as of such
          date in accordance with GAAP, and (b) in respect of any Synthetic
          Lease Obligation, the capitalized amount of the remaining lease
          payments under the relevant lease that would appear on a balance sheet
          of such Person prepared as of such date in accordance with GAAP if
          such lease were accounted for as a capital lease.

               "Cash Management Obligations" means, with respect to any Lender,
          any obligations owed to such Lender by the Company or any of its
          Subsidiaries which arise as a direct result of the deposit, collection
          and other cash management, treasury or deposit services provided by
          such Lender to the Company or any such Subsidiary, including without
          limitation all of the obligations of the Company or any of its
          Subsidiaries to such Lender for overdrafts, for returned checks and
          other returned items and for

                                      -16-

<PAGE>

          credit extended under, or as a result of, cash management, treasury
          and deposit agreements.

               "Collateral" has the meaning specified in Section 4.9 of this
          Agreement.

               "Collateral Agent" means Bank of America, N.A. in its capacity as
          collateral agent for the Secured Parties, or any permitted successor
          collateral agent.

               "Commitment" or "Aggregate Commitments" shall have the meaning
          set forth in the Bank Credit Agreement as in effect on the date
          hereof.

               "Disposition" or "Dispose" means the sale, assignment, exclusive
          (in all jurisdictions) licensing or other transfer (including any sale
          and leaseback transaction but excluding any ordinary course licensing
          arrangement and excluding the sale of environmental credits to the
          extent the amount of proceeds therefrom does not exceed $3,000,000 in
          the aggregate in any fiscal year of the Guarantor) of any property by
          any Person, including any sale, assignment or other transfer, with or
          without recourse, of any notes or accounts receivable or any rights
          and claims associated therewith.

               "Domestic Subsidiary" means a Subsidiary of the Guarantor which
          is organized under the laws of the United States or any political
          subdivision thereof.

               "Equity Interests" means, with respect to any Person, all of the
          shares of capital stock of (or other ownership or profit interests in)
          such Person, all of the warrants, options or other rights for the
          purchase or acquisition from such Person of shares of capital stock of
          (or other ownership or profit interests in) such Person, all of the
          securities convertible into or exchangeable for shares of capital
          stock of (or other ownership or profit interests in) such Person or
          warrants, rights or options for the purchase or acquisition from such
          Person of such shares (or such other interests), and all of the other
          ownership or profit interests in such Person (including partnership,
          member or trust interests therein), whether voting or nonvoting, and
          whether or not such shares, warrants, options, rights or other
          interests are outstanding on any date of determination.

               "Foreign Subsidiary" means a Restricted Subsidiary of the
          Guarantor which is not a Domestic Subsidiary.

                                      -17-

<PAGE>

               "Indebtedness" means, as to any Person at a particular time, all
          of the following, whether or not included as indebtedness or
          liabilities in accordance with GAAP:

                    (a) all obligations of such Person for borrowed money and
               all obligations of such Person evidenced by bonds, debentures,
               notes, loan agreements or other similar instruments;

                    (b) all direct or contingent obligations of such Person
               arising under letters of credit (including standby and
               commercial), bankers' acceptances, bank guaranties, surety bonds
               and similar instruments;

                    (c) all obligations of such Person to pay the deferred
               purchase price of property or services payable more than six
               months after incurrence of the obligation (other than trade
               accounts payable in the ordinary course of business and
               contingent earn-outs payable with respect to Acquisitions
               otherwise permitted hereunder);

                    (d) indebtedness (excluding prepaid interest thereon)
               secured by a Lien on property owned or being purchased by such
               Person (including indebtedness arising under conditional sales or
               other title retention agreements), whether or not such
               indebtedness shall have been assumed by such Person or is limited
               in recourse;

                    (e) capital leases to the extent classified as a liability
               on the balance sheet in accordance with GAAP and Synthetic Lease
               Obligations; and

                    (f) all Guaranties of such Person in respect of any of the
               foregoing.

               For all purposes hereof, the Indebtedness of any Person shall
               include the Indebtedness of any partnership or Joint Venture
               (other than a Joint Venture that is itself a corporation or
               limited liability company) in which such Person is a general
               partner or a joint venturer, unless such Indebtedness is
               expressly made non-recourse to such Person (subject only to
               customary exceptions) but only to the extent such Person is
               liable therefor. The amount of any capital lease or Synthetic
               Lease Obligation as of any date shall be deemed to be the amount
               of Attributable Indebtedness in respect thereof as of such date.

                                      -18-

<PAGE>

               "Intercompany Indebtedness" means Indebtedness of (i) any Note
          Party to any other Note Party, (ii) any Note Party to a Foreign
          Subsidiary (other than Libbey Canada); and (iii) any Foreign
          Restricted Subsidiary to another Foreign Restricted Subsidiary (other
          than Libbey Canada).

               "Intercreditor Agreement" means that certain Intercreditor and
          Collateral Agency Agreement to be executed among the Administrative
          Agent, the Lenders, the Collateral Agent, the Noteholders, and the
          Victrocrisa Lenders and consented and agreed by the Guarantor and the
          other Note Parties, as the same may be amended, modified, restated,
          supplemented or replaced from time to time which agreement shall among
          other things provide limitations on the obligations secured by the
          Collateral and for the sharing of proceeds from the sale or
          disposition of the assets of the Guarantor and its Restricted
          Subsidiaries (whether or not at the time subject to the Lien of the
          Security Documents) in a manner reasonably acceptable to the
          Noteholders.

               "Investment" means, as to any Person, any acquisition or
          investment by such Person, whether by means of (a) the purchase or
          other acquisition of capital stock or other securities of another
          Person, (b) a loan, advance or capital contribution to, guaranty of
          debt of, or purchase or other acquisition of any other debt or equity
          participation or interest in, another Person, including any
          partnership or Joint Venture interest in such other Person, or (c) the
          purchase or other acquisition (in one transaction or a series of
          related transactions) of assets of another Person that constitute a
          business unit. For purposes of covenant compliance, the amount of any
          Investment shall be the amount actually invested by a Person minus
          cash dividends, other cash returns and the fair market value of other
          distributions received by such Person on or with respect to such
          Investment net of taxes associated with such dividends and returns
          without adjustment for subsequent increases or decreases in the value
          of such Investment.

               "Joint Venture" means a corporation, partnership, limited
          liability company, joint venture or other similar legal arrangement
          (whether created by contract or conducted through a separate legal
          entity) which is not a Subsidiary and which is now existing or
          hereafter formed by the Guarantor or any of its Subsidiaries with
          another Person in order to conduct a common venture or enterprise with
          such Person.

               "Mortgage" means any mortgage, deed of trust, deed to secure, or
          similar instrument under which a Lien may be granted

                                      -19-

<PAGE>

          against real property, duly executed by the Guarantor, the Company or
          one of the Subsidiary Guarantors covering the Real Property,
          appropriately conformed to the particular requirements of each
          applicable jurisdiction where such Real Property is located and in
          form and substance reasonably satisfactory to the Required Holders.

               "Net Proceeds" means, as to any Disposition by a Person, proceeds
          in cash, checks or other cash equivalent financial instruments as and
          when received by such Person, net of: (a) the direct costs relating to
          such Disposition excluding amounts payable to such Person or any
          Affiliate of such Person, (b) sale, use or other transaction taxes
          paid or payable by such Person as a direct result thereof, and (c)
          amounts required to be applied to repay principal, interest and
          prepayment premiums and penalties on Indebtedness secured by a Lien on
          the asset which is the subject of such Disposition.

               "Note Documents" means this Agreement, the Note Purchase
          Agreement, the Security Documents (once entered into), each Note, each
          Compliance Certificate and the Subsidiary Guaranties, including all
          amendments, restatements, replacements, modifications, increases,
          extensions, ratifications, joinders, and supplements to the foregoing.

               "Noteholders" means, collectively, each of the purchasers party
          to the Note Purchase Agreement, including their permitted successors
          and assigns.

               "Note Parties" means, collectively, the Company and each
          Guarantor.

               "Permitted Cost Savings" means, with respect to the determination
          of Consolidated Net Income on a Pro Forma Basis, such cost savings as
          would be permitted pursuant to Rule 11.02 of Regulation S-X, based on
          the Guarantor's management's good faith estimate and as reviewed by
          certified public accountants.

               "Pledged Foreign Subsidiary" means each, and "Pledged Foreign
          Subsidiaries" means all, Subsidiaries of the Company that are owned
          directly by the Company or the Guarantor or a Subsidiary Guarantor
          which are organized under the laws of a jurisdiction other than the
          United States of America or any state or commonwealth thereof.

                                      -20-

<PAGE>

               "Pro Forma Basis" means, (a) with respect to the preparation of
          pro forma financial statements for the purpose of the adjustment to
          Consolidated EBITDA relating to any Acquisition and for any other
          purpose related to any Acquisition, a pro forma on the basis that (i)
          any Indebtedness incurred or assumed in connection with such
          Acquisition was incurred or assumed on the first day of the applicable
          period, (ii) if such Indebtedness bears a floating interest rate, such
          interest shall be paid over the pro forma period either at the rate in
          effect on the date of such Acquisition or the applicable rate
          experienced over the period, and (iii) all income and expense
          associated with the assets or entity acquired in connection with such
          Acquisition for the most recently ended four fiscal quarter period for
          which such income and expense amounts are available shall be treated
          as being earned or incurred by Guarantor and its Restricted
          Subsidiaries on a pro forma basis for the portion of the applicable
          period occurring prior to the date such Acquisition has occurred
          without giving effect to any cost savings other than Permitted Cost
          Savings; provided, however, that with respect to the amount of any
          Permitted Cost Savings, 100% of such amount may be used in the first
          fiscal quarter ending after the date the applicable Acquisition was
          consummated, 75% of such amount may be used in the second fiscal
          quarter ending after the date the applicable Acquisition was
          consummated, 50% of such amount may be used in the third fiscal
          quarter ending after the date the applicable Acquisition was
          consummated, and 25% of such amount may be used in the fourth fiscal
          quarter ending after the date the applicable Acquisition was
          consummated; and (b) with respect to the preparation of pro forma
          financial statements for purpose of the permitted adjustment to
          Consolidated EBITDA relating to any Disposition and for any other
          purpose related to any Disposition, a pro forma on the basis that (i)
          any Indebtedness prepaid out of the proceeds of such Disposition shall
          be deemed to have been prepaid as of the first day of the applicable
          period, and (ii) all income and expense (other than such expenses as
          the Guarantor, in good faith, estimates will not be reduced or
          eliminated as a consequence of such Disposition) associated with the
          assets or entity disposed of in connection with such Disposition shall
          be deemed to have been eliminated as of the first day of the
          applicable period.

               "Real Property" means the real property located in the United
          States and owned by the Guarantor, the Company or the Subsidiary
          Guarantors as described in Schedule 1 to the Third Amendment
          Agreement.

                                      -21-

<PAGE>

               "Restricted Material Subsidiary" means (a) any Domestic
          Subsidiary and (b) any Foreign Subsidiary, in each case, whose (i)
          assets have a book value of at least $2,000,000 or (ii) annual
          revenues exceed $10,000,000 for the most recently completed four
          fiscal quarters of the Guarantor and which are not Unrestricted
          Subsidiaries as of December 29, 2005.

               "Secured Party" means each of, and "Secured Parties" means all
          of, (a) the Collateral Agent, (b) the Administrative Agent, (c) the
          Lenders, (d) any Affiliate of a Lender that has Cash Management
          Obligations or that is a party to a Swap Contract with the Company or
          any Subsidiary, provided such Lender was a party to the Bank Credit
          Agreement at the time such Cash Management Obligations were incurred
          or such Swap Contract was entered into, (e) the Swing Line Lender (as
          defined in the Bank Credit Agreement), (f) the Noteholders, (g) the
          Vitrocrisa Lenders, and (h) each financial institution or other entity
          that hereafter becomes a "Secured Party" for purposes of the
          Intercreditor Agreement; ; provided that each party shall be a Secured
          Party only to the extent set forth in and subject to the limitations
          set forth in the Intercreditor Agreement.

               "Security Agreement" means the Security Agreement to be executed
          by the Guarantor, the Company and the Subsidiary Guarantors in favor
          of Collateral Agent for the benefit of the Secured Parties, and in
          form and substance reasonably acceptable to the Required Holders, as
          the same may be amended, supplemented, restated, replaced, or modified
          from time to time.

               "Security Documents" means, collectively, any security agreement,
          including without limitation the Security Agreement, any pledge
          agreement, any mortgage or deed of trust including without limitation
          the Mortgages, any assignment and endorsement of insurance, or any
          other agreement, joinder, ratification, or document, together with all
          related financing statements and stock powers, executed and delivered
          in connection with this Agreement to create a Lien on any real or
          personal property in favor of Collateral Agent for the benefit of the
          Secured Parties, as the same may be amended, supplemented, replaced,
          modified and restated from time to time.

               "Swap Contract" means (a) any and all rate swap transactions,
          basis swaps, credit derivative transactions, forward rate
          transactions, commodity swaps, commodity options, forward commodity
          contracts, equity or equity index swaps or options, bond or bond price
          or bond index swaps or options or forward

                                      -22-

<PAGE>

          bond or forward bond price or forward bond index transactions,
          interest rate options, forward foreign exchange transactions, cap
          transactions, floor transactions, collar transactions, currency swap
          transactions, cross-currency rate swap transactions, currency options,
          spot contracts, or any other similar transactions or any combination
          of any of the foregoing (including any options to enter into any of
          the foregoing), whether or not any such transaction is governed by or
          subject to any master agreement, and (b) any and all transactions of
          any kind, and the related confirmations, which are subject to the
          terms and conditions of, or governed by, any form of master agreement
          published by the International Swaps and Derivatives Association,
          Inc., any International Foreign Exchange Master Agreement, or any
          other master agreement (any such master agreement, together with any
          related schedules, a "Master Agreement"), including any such
          obligations or liabilities under any Master Agreement.

               "Synthetic Lease Obligation" means the monetary obligation of a
          Person under (a) a so-called synthetic, off-balance sheet or tax
          retention lease, or (b) an agreement for the use or possession of
          property creating obligations that do not appear on the balance sheet
          of such Person but which, upon the insolvency or bankruptcy of such
          Person, would be characterized as the indebtedness of such Person
          (without regard to accounting treatment).

               "Third Amendment Agreement" means that certain Waiver and Third
          Amendment to Parent Guaranty Agreement and Amendment to Note Purchase
          Agreement dated as of December 29, 2005 between the Company and the
          Purchasers, in respect of this Agreement.

               "Vitrocrisa Credit Agreement" means that certain Credit Agreement
          dated as of April 2, 2004, by and among Vitrocrisa Comercial, S. de
          R.L. de C.V., a corporation organized and existing under the laws of
          Mexico, Vitrocrisa, S. de R.L. de C.V., a corporation organized and
          existing under the laws of Mexico, the lenders and agents party
          thereto, as may be amended, restated, supplemented, modified or
          replaced from time to time.

               "Vitrocrisa Lenders" means, collectively, each of the Tranche B
          Lenders (as defined on the Vitrocrisa Credit Agreement) party to the
          Vitrocrisa Credit Agreement, including their permitted successors and
          assigns."

                                      -23-

<PAGE>

                                    ARTICLE 4

                         REPRESENTATIONS AND WARRANTIES

     The Guarantor and the Company severally and jointly represent and warrant
that as of the date hereof and after giving effect hereto:

          (a) The execution and delivery of this Agreement by the Guarantor and
     the Company and compliance by the Guarantor and the Company with all of the
     provisions of the Guaranty Agreement, the Note Purchase Agreement and the
     Notes as amended by this Agreement --

               (i) are within the corporate power and authority of the Guarantor
          and the Company; and

               (ii) will not violate any provisions of any law or any order of
          any court or governmental authority or agency and will not conflict
          with or result in any breach of any of the terms, conditions or
          provisions of, or constitute a default under the certificate of
          incorporation or by-laws of the Guarantor or the Company, or any
          indenture or other material agreement or instrument to which the
          Guarantor or the Company is party or by which the Guarantor or the
          Company may be bound or (other than Liens created by the Security
          Documents) result in the imposition of any Liens or encumbrances on
          any property of the Guarantor or the Company.

          (b) The execution and delivery of this Agreement has been duly
     authorized by all necessary corporate action on the part of the Guarantor
     and the Company; and this Agreement has been duly executed and delivered by
     the Guarantor and the Company, and the Guaranty Agreement, the Note
     Purchase Agreement and the Notes, in each case as amended by this
     Agreement, constitute the legal, valid and binding obligations, contracts
     and agreements of the Guarantor and the Company, as the case may be,
     enforceable in accordance with their respective terms, subject to
     bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
     and similar laws affecting creditors' rights generally, and general
     principles of equity (regardless of whether the application of such
     principles is considered in a proceeding in equity or at law).

          (c) Upon the effectiveness of this Agreement and that certain
     Amendment No. 3 and Waiver to Credit Agreement, dated as of December 29,
     2005 (the "Credit Agreement Waiver"), in respect of the Credit Agreement
     dated as of June 24, 2004 (as amended, modified or waived as of the date
     hereof, the "Bank Credit Agreement") by and among the Company, Libbey
     Europe B.V. and the banks and financial institutions named therein, no
     Default or Event of Default exists or shall be continuing under the
     Guaranty Agreement or the Note Purchase Agreement.

          (d) Neither the Guarantor nor any Subsidiary has paid any fee or other
     consideration or remuneration to any Lender (as defined in the Bank Credit
     Agreement),

                                      -24-

<PAGE>

     in its capacity as such, or to any Noteholder, in its capacity as such, in
     connection with the execution and delivery of the Credit Agreement Waiver
     or this Agreement except (i) a fee equal to .25% of the commitment amount
     of each Lender party to the Credit Agreement Waiver, and (ii) the fee
     referenced in Section 5.4 of this Agreement.

                                    ARTICLE 5

                                 MISCELLANEOUS

     Section 5.1. References to Agreements. References in the Guaranty Agreement
or the Note Purchase Agreement or in any Note, certificate, instrument or other
document delivered in connection with or in respect of the Guaranty Agreement or
the Note Purchase Agreement shall be deemed to be references to the Guaranty
Agreement and Note Purchase Agreement as heretofore and hereby amended without
making specific reference to this Agreement.

     Section 5.2. Effect of Waiver; Reaffirmation of Agreements. (a) Except as
expressly set forth herein, the Guarantor agrees that the Guaranty Agreement and
all other documents and agreements executed by the Guarantor in connection with
the Guaranty Agreement in favor of the Noteholders are ratified and confirmed in
all respects and continue unimpaired and shall remain in full force and effect.

     (b) Except as expressly set forth herein, the Company agrees that the Note
Purchase Agreement and all other documents and agreements executed by the
Company in connection with the Note Purchase Agreement in favor of the
Noteholders are ratified and confirmed in all respects and continue unimpaired
and shall remain in full force and effect.

     Section 5.3. Successors and Assigns. This Agreement shall be binding upon
the Guarantor and the Company and their respective successors and assigns and
shall inure to the benefit of the Noteholders and to the benefit of the
Noteholders' successors and assigns, including each successive holder or holders
of any Notes.

     Section 5.4. Requisite Approval; Expenses. This Amendment shall be
effective as of the date first written above upon the satisfaction of the
following conditions precedent:

          (a) the Guarantor, the Company and the Required Holders shall have
     executed this Agreement;

          (b) the Subsidiary Guarantors shall have executed and delivered an
     Acknowledgment and Consent in respect of this Agreement, in the form
     attached hereto as Exhibit A;

          (c) the Company shall have executed and delivered the Credit Agreement
     Amendment and such Credit Agreement Amendment shall be in all respects in
     form and substance satisfactory to the Noteholders;

                                      -25-

<PAGE>

          (d) the Guarantor, Company and the Subsidiary Guarantors shall have
     executed and delivered to the Noteholders a release of the Noteholders
     substantially in the form attached hereto as Exhibit B;

          (e) the Company shall have paid a fee to each Noteholder in an amount
     equal to 25 basis points on the principal amount of the Notes held by such
     Noteholder;

          (f) the Company shall have paid the reasonable fees, expenses and
     disbursements of Chapman and Cutler LLP which are reflected in statements
     of such counsel rendered on or prior to the date of this Agreement; and

          (g) the Company shall have paid all reasonable out-of-pocket expenses
     incurred by each Conway, Del Genio, Gries & Co., LLC in connection with the
     consummation of the transactions contemplated by this Amendment which are
     reflected in statements of the financial advisor rendered on or prior to
     the date of this Amendment and the Company shall have executed and
     delivered the Financial Advisor Fee, Indemnification and Confidentiality
     Letter.

     Section 5.5. Counterparts. This Agreement may be executed in any number of
counterparts, each executed counterpart constituting an original but all
together only one agreement.

     Section 5.6. Governing Law. This Agreement shall be construed and enforced
in accordance with, and the rights of the parties shall be governed by, the law
of the State of New York excluding choice-of-law principles of the law of such
State that would require the application of the laws of a jurisdiction other
than such State.

                   Remainder of Page Intentionally Left Blank

                                      -26-

<PAGE>

     IN WITNESS WHEREOF, the Company and the Guarantor have executed the
foregoing Agreement as of the day and year first above written.

                                        LIBBEY GLASS INC.

                                        By /s/ Kenneth A. Boerger
                                           -------------------------------------
                                        Its VP and Treasurer

                                        LIBBEY INC.

                                        By /s/ Kenneth A. Boerger
                                           -------------------------------------
                                        Its VP and Treasurer

                                                                     Libbey Inc.
                         Waiver and Third Amendment to Parent Guaranty Agreement

<PAGE>

     The foregoing Agreement is accepted and agreed to as of the day and year
first above written.

                                        METROPOLITAN LIFE INSURANCE COMPANY

                                        By /s/ Michael J. Kroeger
                                           -------------------------------------
                                        Name: Michael J. Kroeger
                                        Title: Managing Director

                                        GENERAL AMERICAN LIFE INSURANCE COMPANY

                                        By: Metropolitan Life Insurance Company,
                                            as Investment Manager

                                        By /s/ Michael J. Kroeger
                                           -------------------------------------
                                        Name: Michael J. Kroeger
                                        Title: Managing Director

                                                                     Libbey Inc.
                         Waiver and Third Amendment to Parent Guaranty Agreement

<PAGE>

     This Waiver and Third Amendment to Parent Guaranty Agreement is accepted
and agreed to as of the day and year first above written.

                                        THE VARIABLE ANNUITY LIFE INSURANCE
                                        COMPANY
                                        AIG LIFE INSURANCE COMPANY
                                        SUNAMERICA LIFE INSURANCE COMPANY

                                        By: AIG Global Investment Corp.,
                                            investment adviser

                                        By /s/ Gerald F. Herman
                                           -------------------------------------
                                        Name: Gerald F. Herman
                                        Title: Vice President

                                                                     Libbey Inc.
                         Waiver and Third Amendment to Parent Guaranty Agreement

<PAGE>

     The foregoing Agreement is accepted and agreed to as of the day and year
first above written.

                                        BANC OF AMERICA SECURITIES LLC

                                        By /s/ John J. DeCoursey
                                           -------------------------------------
                                        Name: John J. DeCoursey
                                        Title: Principal

                                                                     Libbey Inc.
                         Waiver and Third Amendment to Parent Guaranty Agreement

<PAGE>

     The foregoing Agreement is accepted and agreed to as of the day and year
first above written.

                                        MASSACHUSETTS MUTUAL LIFE INSURANCE
                                        COMPANY

                                        By: Babson Capital Management LLC, as
                                            Investment Adviser

                                        By /s/ Elisabeth A. Perenick
                                           -------------------------------------
                                        Name: Elisabeth A. Perenick
                                        Title: Managing Director

                                        C.M. LIFE INSURANCE COMPANY

                                        By: Babson Capital Management LLC, as
                                            Investment Sub-Adviser

                                        By /s/ Elisabeth A. Perenick
                                           -------------------------------------
                                        Name: Elisabeth A. Perenick
                                        Title: Managing Director

                                        MASSMUTUAL ASIA LIMITED

                                        By: Babson Capital Management LLC, as
                                            Investment Adviser

                                        BY /s/ Elisabeth A. Perenick
                                           -------------------------------------
                                        Name: Elisabeth A. Perenick
                                        Title: Managing Director

                                                                     Libbey Inc.
                         Waiver and Third Amendment to Parent Guaranty Agreement

<PAGE>

     The foregoing Agreement is accepted and agreed to as of the day and year
first above written.

                                        NATIONWIDE LIFE INSURANCE COMPANY
                                        NATIONWIDE LIFE AND ANNUITY INSURANCE
                                           COMPANY
                                        NATIONWIDE MUTUAL FIRE INSURANCE
                                           COMPANY

                                        By /s/ Tom Leggett
                                           -------------------------------------
                                        Name: Tom Leggett
                                        Title: AVP

                                                                     Libbey Inc.
                         Waiver and Third Amendment to Parent Guaranty Agreement

<PAGE>

     The foregoing Agreement is accepted and agreed to as of the day and year
first above written.

                                        GREAT-WEST LIFE & ANNUITY INSURANCE
                                        COMPANY

                                        By: /s/ Eve Hampton
                                            ------------------------------------
                                        Name: Eve Hampton
                                        Title: Vice President, Investments

                                        By: /s/ J. G. Lowery
                                            ------------------------------------
                                        Name: J. G. Lowery
                                        Title: Assistant Vice President,
                                               Investments

                                                                     Libbey Inc.
                         Waiver and Third Amendment to Parent Guaranty Agreement

<PAGE>

     The foregoing Agreement is accepted and agreed to as of the day and year
first above written.

                                        MONUMENTAL LIFE INSURANCE COMPANY

                                        By /s/ Bill Henricksen
                                           -------------------------------------
                                        Name: Bill Henricksen
                                        Title: Vice President

                                                                     Libbey Inc.
                         Waiver and Third Amendment to Parent Guaranty Agreement

<PAGE>

                                   NOTEHOLDERS

<TABLE>
<CAPTION>
                                                SERIES OF      OUTSTANDING
             NAMES OF NOTEHOLDERS                 NOTES     PRINCIPAL AMOUNT
             --------------------               ---------   ----------------
<S>                                             <C>         <C>
METROPOLITAN LIFE INSURANCE COMPANY                A-1        $ 25,000,000
GENERAL AMERICAN LIFE INSURANCE COMPANY            A-2        $  4,000,000
THE VARIABLE ANNUITY LIFE INSURANCE COMPANY        A-2        $  7,000,000
AIG LIFE INSURANCE COMPANY                         A-2        $  6,000,000
HARE & CO. (as Nominee for Banc of America         A-2        $  5,000,000
Securities LLC)
                                                              $  5,000,000
                                                              $  5,000,000
MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY        A-2        $  3,550,000
                                                              $  2,200,000
                                                              $  1,250,000
                                                              $    750,000
                                                              $    350,000
C.M. LIFE INSURANCE COMPANY                        A-2        $  1,450,000
MASSMUTUAL ASIA LIMITED                            A-2        $    450,000
NATIONWIDE LIFE INSURANCE COMPANY                  A-2        $  4,000,000
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY      A-2        $  3,000,000
NATIONWIDE MUTUAL FIRE INSURANCE COMPANY           A-2        $  2,000,000
GREAT WEST LIFE & ANNUITY INSURANCE COMPANY        A-2        $  4,000,000
SUNAMERICA LIFE INSURANCE COMPANY                   B         $  7,000,000
MONUMENTAL LIFE INSURANCE COMPANY                   B         $ 13,000,000
                                                  TOTAL       $100,000,000
</TABLE>

                                   SCHEDULE I
               (to Third Amendment to Parent Guaranty Agreement)

<PAGE>

                           FORM OF SERIES 2003A-1 NOTE

                                LIBBEY GLASS INC.

                 Senior Notes, Series 2003A-1, due March 31, 2008

No. [________]                                                    March 31, 2003
$[___________]                                                   PPN 52989# AB 8

     FOR VALUE RECEIVED, the undersigned, LIBBEY GLASS INC. (herein called the
"Company"), a Delaware corporation, hereby promises to pay to [______________],
or registered assigns, the principal sum of [______________] DOLLARS on March
31, 2008, with interest (computed on the basis of a 360-day year of twelve
30-day months) (a) on the unpaid balance thereof at the Series 2003A-1
Applicable Rate from the date hereof, payable semiannually, on the last day of
each March and September in each year, commencing September 30, 2003, until the
principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount (as defined in the Note Purchase Agreement referred to below),
payable semiannually as aforesaid (or, at the option of the registered holder
hereof, on demand), at a rate per annum from time to time equal to the greater
of (i) 2% over the Series 2003A-1 Applicable Rate or (ii) 2% over the rate of
interest publicly announced by Bank of America, N.A. from time to time in New
York, New York as its "base" or "prime" rate.

     Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the principal office of Bank of America, N.A. in New York, New York
or at such other place as the Company shall have designated by written notice to
the holder of this Note as provided in the Note Purchase Agreement referred to
below.

     This Note is one of a series of Senior Notes (herein called the "Notes")
issued pursuant to the Note Purchase Agreement, dated as of March 31, 2003 (as
from time to time amended, the "Note Purchase Agreement"), between the Company
and the respective Purchasers named therein and is entitled to the benefits
thereof. Each holder of this Note will be deemed, by its acceptance hereof, (i)
to have agreed to the confidentiality provisions set forth in Section 20 of the
Note Purchase Agreement and (ii) to have made the representations set forth in
Section 6 of the Note Purchase Agreement, provided that such holder may (in
reliance upon information provided by the Company, which shall not be
unreasonably withheld) make a representation to the effect that the purchase by
such holder of any Note will not constitute a non-exempt prohibited transaction
under section 406(a) of ERISA.

     This Note is a registered Note and, as provided in the Note Purchase
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and

                                  EXHIBIT 1(a)
                          (to Note Purchase Agreement)

<PAGE>

registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

     Pursuant to Guaranty Agreements dated as of March 31, 2003, Libbey Inc., a
Delaware corporation, and certain of its subsidiaries have absolutely and
unconditionally guaranteed payment in full of the principal of, Make-Whole
Amount if any, and interest on this Note and the performance by the Company of
all its obligations contained in the Note Purchase Agreement all as more fully
set forth in said Guaranty Agreements.

     This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase Agreement,
but not otherwise.

     If an Event of Default, as defined in the Note Purchase Agreement, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.

     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of the law of such state that would require
the application of the laws of a jurisdiction other than such State.

                                        LIBBEY GLASS INC.

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

                                    E-1(a)-2

<PAGE>

                           FORM OF SERIES 2003A-2 NOTE

                               LIBBEY GLASS INC.

                Senior Notes, Series 2003A-2, due March 31, 2013

No. [___________________]                                         March 31, 2003
$[______________________]                                        PPN 52989# AC 6

     FOR VALUE RECEIVED, the undersigned, LIBBEY GLASS INC. (herein called the
"Company"), a Delaware corporation, hereby promises to pay to [_______________],
or registered assigns, the principal sum of [_______________] DOLLARS on March
31, 2013, with interest (computed on the basis of a 360-day year of twelve
30-day months) (a) on the unpaid balance thereof at the Series 2003-A-2
Applicable Rate from the date hereof, payable semiannually, on the last day of
each March and September in each year, commencing September 30, 2003, until the
principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount (as defined in the Note Purchase Agreement referred to below),
payable semiannually as aforesaid (or, at the option of the registered holder
hereof, on demand), at a rate per annum from time to time equal to the greater
of (i) Series 2003A-2 Applicable Rate plus 2% or (ii) 2% over the rate of
interest publicly announced by Bank of America, N.A. from time to time in New
York, New York as its "base" or "prime" rate.

     Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the principal office of Bank of America, N.A. in New York, New York
or at such other place as the Company shall have designated by written notice to
the holder of this Note as provided in the Note Purchase Agreement referred to
below.

     This Note is one of a series of Senior Notes (herein called the "Notes")
issued pursuant to the Note Purchase Agreement, dated as of March 31, 2003 (as
from time to time amended, the "Note Purchase Agreement"), between the Company
and the respective Purchasers named therein and is entitled to the benefits
thereof. Each holder of this Note will be deemed, by its acceptance hereof, (i)
to have agreed to the confidentiality provisions set forth in Section 20 of the
Note Purchase Agreement and (ii) to have made the representations set forth in
Section 6 of the Note Purchase Agreement, provided that such holder may (in
reliance upon information provided by the Company, which shall not be
unreasonably withheld) make a representation to the effect that the purchase by
such holder of any Note will not constitute a non-exempt prohibited transaction
under section 406(a) of ERISA.

     This Note is a registered Note and, as provided in the Note Purchase
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and

                                  EXHIBIT 1(b)
                          (to Note Purchase Agreement)

<PAGE>

LIBBEY GLASS INC.                                        Note Purchase Agreement

registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

     Pursuant to Guaranty Agreements dated as of March 31, 2003, Libbey Inc., a
Delaware corporation, and certain of its subsidiaries have absolutely and
unconditionally guaranteed payment in full of the principal of, Make-Whole
Amount if any, and interest on this Note and the performance by the Company of
all its obligations contained in the Note Purchase Agreement all as more fully
set forth in said Guaranty Agreements.

     This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase Agreement,
but not otherwise.

     If an Event of Default, as defined in the Note Purchase Agreement, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.

     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of the law of such state that would require
the application of the laws of a jurisdiction other than such State.

                                        LIBBEY GLASS INC.

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

                                    E-1(b)-2

<PAGE>

                            FORM OF SERIES 2003B NOTE

                                LIBBEY GLASS INC.

           Floating Rate Senior Notes, Series 2003B, due March 31, 2010

No. [___________]                                                 March 31, 2003
U.S. $[_______________]                                          PPN 52989# AD 4

     FOR VALUE RECEIVED, the undersigned, LIBBEY GLASS INC. (herein called the
"Company"), a Delaware corporation, hereby promises to pay to [____________],
or registered assigns, the principal sum of [__________] DOLLARS on March 31,
2010, with interest (computed on the basis of a 360 day year and actual days
elapsed) (a) on the principal amount from time to time remaining unpaid hereon
at a floating rate equal to the Adjusted LIBOR Rate (as defined in the Note
Purchase Agreement referred to below) from the date thereof until maturity,
payable quarterly on the last day of each March, June, September and December in
each year commencing on June 30, 2003, until the principal hereof shall have
become due and payable, and (b) to the extent permitted by law on any overdue
payment (including any overdue prepayment) of principal, any overdue payment of
interest and any overdue payment of any Series B Premium Amount and LIBOR
Breakage Amount (as defined in the Note Purchase Agreement referred to below),
payable quarterly as aforesaid (or, at the option of the registered holder
hereof, on demand), at a rate per annum from time to time equal to the Series B
Default Rate (as defined in the Note Purchase Agreement).

     Payments of principal of, interest on and any Series B Premium Amount and
any LIBOR Breakage Amount with respect to this Note are to be made in lawful
money of the United States of America at the principal office of Bank of
America, N.A. in New York, New York or at such other place as the Company shall
have designated by written notice to the holder of this Note as provided in the
Note Purchase Agreement referred to below.

     This Note is one of a series of Senior Notes (herein called the "Notes")
issued pursuant to the Note Purchase Agreement, dated as of March 31, 2003 (as
from time to time amended, the "Note Purchase Agreement"), between the Company
and the respective Purchasers named therein and is entitled to the benefits
thereof. Each holder of this Note will be deemed, by its acceptance hereof, (i)
to have agreed to the confidentiality provisions set forth in Section 20 of the
Note Purchase Agreement and (ii) to have made the representations set forth in
Section 6 of the Note Purchase Agreement, provided that such holder may (in
reliance upon information provided by the Company, which shall not be
unreasonably withheld) make a representation to the effect that the purchase by
such holder of any Note will not constitute a non-exempt prohibited transaction
under section 406(a) of ERISA.

     This Note is a registered Note and, as provided in the Note Purchase
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and

                                  EXHIBIT 1(c)
                          (to Note Purchase Agreement)

<PAGE>

LIBBEY GLASS INC.                                        Note Purchase Agreement

registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

     Pursuant to Guaranty Agreements dated as of March 31, 2003, Libbey Inc., a
Delaware corporation, and certain of its subsidiaries have absolutely and
unconditionally guaranteed payment in full of the principal of, Series B Premium
Amount and LIBOR Breakage Amount, if any, and interest on this Note and the
performance by the Company of all its obligations contained in the Note Purchase
Agreement all as more fully set forth in said Guaranty Agreements.

     This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase Agreement,
but not otherwise.

     If an Event of Default, as defined in the Note Purchase Agreement, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Series B Premium Amount and LIBOR Breakage Amount) and with the effect provided
in the Note Purchase Agreement.

     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of the law of such state that would require
the application of the laws of a jurisdiction other than such State.

                                        LIBBEY GLASS INC.

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

                                    E-l(c)-2

<PAGE>

                           ACKNOWLEDGMENT AND CONSENT

To the institutional investors named in
Schedule I to the Amendments (as hereinafter described)

     This Acknowledgment and Consent (this "Acknowledgment and Consent"), dated
as of December 29, 2005, is being delivered by each of the undersigned (each, a
"Subsidiary Guarantor"), in respect of that certain Subsidiary Guaranty dated as
of March 31, 2003 (the "Subsidiary Guaranty"), given in favor of the
institutional investors referred to therein, and in connection with the
transactions contemplated by this Waiver and Third Amendment to Parent Guaranty
Agreement and Amendment to Note Purchase Agreement, effective as of even date
herewith (the "Guaranty Amendment"), between Libbey Inc., a Delaware corporation
(the "Guarantor"), the Company and the institutional investors party thereto, in
respect of the original Parent Guaranty Agreement dated as of March 31, 2003 (as
amended, modified or waived prior to the date hereof, the "Guaranty Agreement")
between the Guarantor and the institutional investors party thereto relating to
the original Note Purchase Agreement, dated as of March 31, 2003 between Libbey
Glass Inc. and the institutional investors party thereto. Capitalized terms used
but not otherwise defined herein shall have the meanings ascribed to such terms
in this Agreement.

     By executing this Acknowledgment and Consent as of the date hereof, each
Subsidiary Guarantor:

          (i) acknowledges receipt of a copy of, and hereby consents to the
     terms of, the Guaranty Amendment and the Note Agreement Amended;

          (ii) ratifies and confirms the Subsidiary Guaranty; and

          (iii) confirms that the Subsidiary Guaranty continues unimpaired and
     in full force effect.

             [Signature Pages for Acknowledgment and Consent Follow]

                                    EXHIBIT A
               (to Third Amendment to Parent Guaranty Agreement)

<PAGE>

LIBBEY GLASS INC.                                        Note Purchase Agreement

     This Acknowledgment and Consent may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Signatures to this
Acknowledgment and Consent may be given by facsimile or other electronic
transmission, and such signatures shall be fully binding on the party sending
the same.

     IN WITNESS WHEREOF, each Subsidiary Guarantor has caused this
Acknowledgment and Consent to be executed as of the day and year first above
written.

                                        THE DRUMMOND GLASS COMPANY
                                        SYRACUSE CHINA COMPANY
                                        WORLD TABLEWARE INC.
                                        LGA3 CORP.
                                        LGA4 CORP.
                                        LGFS INC.
                                        LGAC LLC
                                        LGC CORP.
                                        TRAEX COMPANY

                                        By
                                           -------------------------------------
                                        Its:
                                             -----------------------------------

                                       A-2

<PAGE>

                                     RELEASE

     THIS RELEASE, dated as of December 29,2005 (the "Release"), is made and
delivered in favor of the Noteholders (as defined in the hereinafter described
Amendment) pursuant to Section 5.4 of that certain Waiver and Third Amendment to
Parent Guaranty Agreement and Amendment to Note Purchase Agreement, effective as
of even date herewith (the "Amendment"), in respect of the Note Purchase
Agreement dated as of March 31, 2003 (as amended, the "Note Purchase Agreement")
between Libbey Glass, Inc., a Delaware corporation (the "Company"), and Libbey
Inc., (the "Guarantor") and the institutional investors named therein and party
thereto. Capitalized terms defined in the Note Purchase Agreement, as amended by
the Amendment, and not otherwise defined herein are used herein with the
meanings so defined.

     In consideration of the agreements by the Noteholders, and for other
valuable consideration, the receipt and sufficiency of which are acknowledged,
each of the Company, the Guarantor and the Subsidiary Guarantors on behalf of
itself and its successors, assigns and other legal representatives, hereby
jointly and severally fully, unconditionally and irrevocably releases,
discharges and covenants not to sue any of the Noteholders, or any of their
respective past and present Affiliates, directors, officers, employees,
shareholders, agents, representatives, accountants, attorneys, consultants,
financial consultants, subsidiaries, their respective successors and assigns and
each Person, if any, that controls any of them, from and with respect to any
claims, counterclaims, damages, losses, liabilities, actions and suits of every
nature, whether in law, at equity or otherwise, whether known or unknown or with
respect to which the facts are known (or should have been known) or suspected
(individually a "Claim" and collectively, the "Claims"), arising from, based
upon or relating to the Amendment, the Note Purchase Agreement or the other Note
Documents or any event which happened or action taken or omitted to be taken
which arises from or relates to the Note Documents, but only to the extent such
Claim arises from or is based upon or relates to events or actions taken or
omitted to be taken on or prior to the date hereof.

     Each of the Company, the Guarantor and the Subsidiary Guarantor represents
and warrants to each Noteholder that it has not made and will not purport to
make, by operation of law or otherwise, any assignment or transfer of any Claim
or any portion thereof.

     Each of the Company, the Guarantor and the Subsidiary Guarantor
understands, acknowledges and agrees that the release set forth above may be
pleaded as a full and complete defense and may be used as a basis for an
injunction against any action, suit or other proceeding which may be instituted,
prosecuted or attempted in breach of the provisions of such release.

     EACH OF THE COMPANY, THE GUARANTOR AND THE SUBSIDIARY GUARANTOR EXPLICITLY
WAIVES ALL RIGHTS UNDER AND ANY BENEFITS OF ANY COMMON LAW OR STATUTORY RULE OR
PRINCIPLE WITH RESPECT TO THE RELEASE OF SUCH CLAIM.

     This instrument is a Note Document.

                                    EXHIBIT B
                (to Third Amendment to Parent Guaranty Agreement)

<PAGE>

LIBBEY GLASS INC.                                        Note Purchase Agreement

     Each of the undersigned has caused this Release to be executed and
delivered by its duly authorized officer as an agreement under seal as of the
date first above written.

                                        LIBBEY GLASS INC.

                                        By
                                           -------------------------------------
                                        Its:
                                             -----------------------------------

                                        LIBBEY INC.

                                        By
                                           -------------------------------------
                                        Its:
                                             -----------------------------------

                                        THE DRUMMOND GLASS COMPANY
                                        SYRACUSE CHINA COMPANY
                                        WORLD TABLEWARE INC.
                                        LGA3 CORP.
                                        LGA4 CORP.
                                        LGFS INC.
                                        LGAC LLC
                                        LGC CORP.
                                        TRAEX COMPANY

                                        By
                                           -------------------------------------
                                        Its:
                                             -----------------------------------

                                       B-2

<PAGE>

                            SCHEDULE OF REAL PROPERTY

<TABLE>
<CAPTION>
      LOCATION                              DESCRIPTION
      --------                              -----------
<S>                    <C>
940 Ash Street         Glass Manufacturing Facility, Warehouse and
Toledo, OH 43611       Distribution Center

4302 Jewella Road      Glass Manufacturing Facility, Warehouse and
Shreveport, LA 71109   Distribution Center

2801 Court Street      Ceramic Dinnerware Manufacturing Plant, Warehouse and
Syracuse, NY 13208     Distribution Center
</TABLE>

                                   SCHEDULE 1
                (to Third Amendment to Parent Guaranty Agreement)<PAGE>

                                                                   Exhibit 10.73

                                                             [EXECUTION VERSION]

                                WAIVER AGREEMENT

     THIS WAIVER AGREEMENT (this "Agreement"), dated as of December 22, 2005,
makes reference to (i) that certain Credit Agreement dated as of April 2, 2004,
among VITROCRISA COMERCIAL, S. de R.L. de C.V., a corporation (sociedad de
responsabilidad limitada de capital variable) organized and existing under the
laws of the United Mexican States ("Comercial"), VITROCRISA, S. de R.L. de C.V.,
a corporation (sociedad de responsabilidad limitada de capital variable)
organized and existing under the laws of the United Mexican States
("Vitrocrisa"), various financial institutions and BANK OF MONTREAL, as
administrative agent ("Administrative Agent"), as amended by that certain First
Amendment to Credit Agreement dated as of June 30, 2005 (as amended, restated,
supplemented or otherwise modified from time to time, the "Credit Agreement");
and (ii) that certain Libbey and Libbey Glass Guaranty dated as of April 2, 2004
(the "Libbey Guaranty") executed by each of LIBBEY INC., a Delaware corporation
("Libbey"), and LIBBEY GLASS INC., a Delaware corporation ("Libbey Glass")
(each, a "Guarantor" and together, the "Guarantors"). Unless otherwise defined
herein, terms used in this Agreement that are defined in the Credit Agreement or
the Libbey Guaranty shall have the same meanings herein as in the Credit
Agreement or the Libbey Guaranty, as applicable.

     WHEREAS, pursuant to the Libbey Guaranty, the Guarantors have guaranteed
certain of the Obligations of Vitrocrisa and/or Comercial to each of the Tranche
B Lenders and the Administrative Agent; and

     WHEREAS, the Guarantors have requested a waiver by the Tranche B Lenders
and the Administrative Agent of the requirements of Section 4.4(b) of the Libbey
Guaranty; and

     WHEREAS, the parties hereto are willing to provide such a waiver as
specifically set forth herein.

     NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

     1. Waiver. Upon satisfaction of the conditions precedent set forth in
Section 3 below, each of the parties hereto waives any Event of Default and any
rights to take action, in each case, arising from the failure of the Guarantors
to maintain a Consolidated Leverage Ratio (as defined in the Note Purchase
Guaranty Agreement) of less than or equal to 3.75 to 1.0 or 3.5 to 1.0, as
applicable, at any time from September 30, 2005 through (but not including)
January 2, 2007, provided that the Consolidated Leverage Ratio (as defined in
the Note Purchase Guaranty Agreement) of the Guarantors shall not exceed (a) 4.5
to 1.0 for the fiscal quarter of the Guarantors ending December 31, 2005, as
determined as of such date, (b) 4.85 to 1.0 for each of the fiscal quarters of
the Guarantors ending March 31, 2006, June 30, 2006 and September 30, 2006, as
determined as of such dates, respectively, and (c) 4.0 to 1.0 for the fiscal
quarter of the Guarantors ending December 31, 2006, as determined as of such
date.

     2. Limited Waiver. Except as set forth in Section 1 above, the execution of
this Agreement and acceptance of any other documents related hereto shall not be
deemed to be a

<PAGE>

waiver of any Event of Default under the Credit Agreement, any Guarantor Event
of Default under the Libbey Guaranty or any breach, default or event of default
under any other Transaction Document, whether or not known to the Administrative
Agent, any Collateral Agent or any Lender and whether or not existing on the
date of this Agreement.

     3. Conditions Precedent. This Agreement shall be effective upon
satisfaction of the following conditions precedent:

          (a) the Administrative Agent shall have received this Agreement, duly
     executed by the Administrative Agent and the Lenders holding at least 66
     2/3% of the sum of the then aggregate unpaid principal amount of the
     Tranche B Loans and the unused Tranche B Total Commitment;

          (b) the Guarantors shall have paid to the Administrative Agent for the
     account of each Tranche B Lender that has delivered (by facsimile or
     otherwise) an executed counterpart of this Agreement to the Administrative
     Agent on or prior to noon (Eastern time) on December 22, 2005, a
     non-refundable fee in an amount equal to 25 basis points (0.25%) of the
     Tranche B Loans of such Tranche B Lender as of the date hereof; and

          (c) the Guarantors shall have paid to the Administrative Agent all
     amounts due and payable pursuant to that certain fee letter dated as of the
     date hereof by and among Bank of Montreal and the Guarantors.

     4. Governing Law. This Agreement shall be construed in accordance with and
be governed by the law of the State of New York without giving effect to the
principles thereof relating to conflicts of law (except Section 5-1401 of the
New York General Obligations Law).

     5. Severability. Whenever possible, each provision of this Agreement shall
be interpreted in a manner as to be effective and valid under applicable law,
but if any provision of this Agreement shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity without invalidating the remainder of such provision
or the remaining provisions of this Agreement.

     6. Captions and Headings. The captions or section headings at various
places in this Agreement are intended for convenience only and do not constitute
and shall not be interpreted as part of this Agreement.

     7. Counterparts; Telecopied Signatures. This Agreement may be executed in
any number of separate counterparts, each of which shall collectively and
separately constitute one and the same agreement. This Agreement may be
authenticated by manual signature, facsimile or, if approved in writing by the
Administrative Agent, electronic means, all of which shall be equally valid. A
facsimile copy of any such executed counterpart shall be deemed valid as an
original.

     8. No Other Changes. Except as explicitly set forth herein, all of the
terms and conditions of the Credit Agreement, the Libbey Guaranty and each other
Transaction Document shall remain in full force and effect.

                                        2

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their officers thereunto duly authorized as of
the date first above written.

                                        BANK OF MONTREAL,
                                        as Administrative Agent

                                        By: /s/ Aaron Lanski
                                            ------------------------------------
                                        Name: Aaron Lanski
                                        Title: Vice President

                                        THE BANK OF NOVA SCOTIA,
                                        as a Tranche B Lender

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

                                        LASALLE BANK MIDWEST NATIONAL
                                        ASSOCIATION (formerly known as Standard
                                        Federal Bank, N.A.), as a Tranche B
                                        Lender

                                        By: /s/ Annette Gordon
                                            ------------------------------------
                                        Name: Annette Gordon
                                        Title: First Vice President

                                                                Waiver Agreement

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