Document:

Unassociated Document

Exhibit 10.1

 

 

 

SETTLEMENT AGREEMENT

This Settlement Agreement ("Agreement") is made this 29th day of April, 2004 by and between Larry G. Arnold, 719 Lost Trail Road, Castle Rock, CO 80108, ("Arnold") and Inform Worldwide Holdings, Inc., P. O. Box 1302, Lyons, CO 80540, ("IWWH").

WHEREAS, the parties acknowledge they are entering into this Settlement Agreement voluntarily and, in part, to further a proposed merger between IWWH and another company; and

WHEREAS, the parties believe it to be in their best interests to clarify and resolve any issues remaining between them;

THEREFORE, in consideration of the mutual promises and covenants herein, and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows;

      1) IWWH and Arnold agree that the May 4, 2000 Employment Agreement between Arnold and IWWH is hereby cancelled, and Arnold agrees that he is waiving all claims to past and future compensation under that Employment Agreement in amounts which he alleges approximate $300,000 in unpaid wages and $750,000 in retirement income,

2) Arnold agrees to indemnify and hold IWWH harmless from all consequences, including liability for damages, costs, and attorney fees, arising from that lawsuit pending in Douglas County District Court: Parrish, et al v. Arnold and Inform Worldwide Holdings, Inc., Case No. 03CV165.

3) Arnold agrees to convert into 700,000 shares of IWWH Class A, Series 1 Cumulative Convertible Preferred Stock all claims, demands, or principal debt owed to him or his affiliates by IWWH, an amount claimed to be $695,000. Arnold further agrees to waive all interest on such principal debt. In further consideration of the issuance of the said 700,000 shares of Class A, Series 1 Cumulative Convertible Preferred Stock, Arnold agrees to release and hold IWWH harmless from all claims which he, or his affiliates, may have to any future payments or compensation whatsoever from IWWH.

4) Arnold's acquisition of the 700,000 shares of IWWH's Class A, Series 1 Cumulative Convertible Preferred Stock is for his own account, for investment purposes only, and not with a view to the distribution (as such term is used under the Securities Act of 1933 Act, as amended) thereof. Arnold understands that the Stock has not been registered under the Securities Act of 1933 Act, as amended, and cannot be sold unless subsequently registered or an exemption from such registration is available. Arnold's rights to transfer any stock issued in conjunction with this Agreement shall be the same as the rights of all other holders of this stock.

 

5) This Agreement constitutes a merger and superseding all other agreements and understandings between the parties., whether written or oral, and includes, but is not limited to, any issues relating to compensation and services of Arnold by IWWH for the period through the date of this Agreement, for and in consideration of the rights and benefits provided him under this Agreement, Arnold, on behalf of himself and his heirs and dependents, executors, administrators and assign as well as his affiliated companies and such companies' respective shareholders, officers, directors, partners, employees, agents, attorneys, successors and assigns, hereby releases and discharges IWWH, its respective shareholders, officers, directors, partners, employees, agents, attorneys, successors and assigns and IWWH’s affiliated companies and such companies' respective shareholders, officers, directors, partners, employees, agents, attorneys, successors and assigns from any and all rights, claims, causes of action, liability, damages, attorney's fees and costs of any kind or nature, whether known or unknown, which Arnold ever had or now has against IWWH, its respective shareholders, officers, directors, partners, employees, agents, attorneys, successors and assigns and IWWHs’ affiliated companies and such companies' respective shareholders, officers, directors, partners, employees, agents, attorneys, successors and assigns by reason of any actual or alleged act, omission, transaction, practice, conduct, occurrence or other matter occurring up to and including the date of this Settlement Agreement

6) Notwithstanding the preceding paragraph, the parties have the right to bring an action to enforce this Agreement in a court of law. In such an event, the prevailing party will be entitled to recover reasonable costs and attorney fees incurred in the bringing of such an action. Arnold specifically agrees that if he breaches any provision of this Agreement, the damages arising from said breach shall be a set off against any amounts owed to him under this Agreement.

7) Arnold acknowledges and agrees that he has read carefully this entire Agreement and understands the details of the consideration to which it entitles him. Arnold further acknowledges and agrees that he fully understands his rights to discuss all aspects of this Agreement with counsel of his choice and that he has availed himself of this opportunity to his complete satisfaction. Arnold represents and agrees that he fully understands this Agreement, has been offered a reasonable period of time to consider this Agreement, is satisfied with it, and has signed his name of his own free will

8) This Agreement and any documents referenced heroin constitute the entire and only agreement regarding the subject matter covered herein and supersedes any prior negotiations, promises, representations, or agreements between the parties, whether written or oral. This Agreement may not be altered or amended except by a written document executed by all parties to this Agreement,

9) The various provisions of this Agreement, including this Section, are intended to represent a single, integrated bargain. Accordingly, the provisions of this Agreement are not severable unless the beneficiary of a term or provision that is determined to be unlawful or unenforceable agrees that such term or provision may be severed.

    10) IWWH and Arnold agree that upon the execution of this Agreement neither will disparage the other.

	 
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    11) This Agreement is personal to Arnold and shall not be assigned by him. The rights and obligations of IWWH under this Agreement shall inure to the benefit of and shall binding upon the successors of IWWH,

    12) Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and if sent by registered or certified mail, return-receipt requested, postage prepaid, to the addresses indicated above.

    13) This Agreement shall be governed by, and interpreted in accordance with, the laws of the State of Colorado. The execution of this Agreement shall not be construed as an admission of a violation of any statute or law or a breach of and duty or obligation by either party to this Agreement.

 

 

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed this Settlement Agreement on the day and date first above given.

ACCEPTED AND AGREED:

	 	 	 
	 	
	 
 	 
 	 
 
	Date: April 29, 2004	By:  	/s/ Larry G. Arnold
	 	

Larry G. Arnold
	 	 

 

 

	 	 	 
	 

	INFORM WORLDWIDE HOLDINGS, INC.
	 
 	 
 	 
 
	Date: April 29, 2004	By:  	/s/ Anthony Clanton
	 	

Anthony Clanton
	 	Title: President

	 
	 	2EX-10.1

Employment Agreement

This document is an Employment Agreement (“Agreement”), is dated as of October
18, 2004, and is by and between Ferro Corporation (the “Company”), an Ohio corporation,
and Mr. James F. Kirsch (“Mr. Kirsch”).

Recitals

	 	A.	 	The Company desires to employ Mr. Kirsch as its President and Chief Operating Officer and Mr.
Kirsch desires to accept employment as the Company’s President and Chief Operating Officer;
and

	 	B.	 	The Company and Mr. Kirsch both desire that the terms and conditions of Mr. Kirsch’s
employment with the Company be as set forth in this Agreement.

Agreement

For good and valuable consideration, and intending to be legally bound, the Company and Mr.
Kirsch hereby agree as follows

	 	1.	 	Employment. The Company hereby employs Mr. Kirsch as its President and Chief
Operating Officer. Mr. Kirsch hereby accepts such employment. The term of Mr. Kirsch’s
employment (the “Term”) will be as provided in paragraph 5 below. Mr. Kirsch will report to
the Company’s Chief Executive Officer.

	 	2.	 	Duties. During the Term, Mr. Kirsch will have the duties, responsibilities, and
authorities of an executive serving the position of President and Chief Operating Officer,
subject in all cases to the power of the Company’s Board of Directors or Chief Executive
Officer to expand or limit such duties, responsibilities, and authorities, either generally or
in specific instances.

	 	3.	 	Mr. Kirsch’s Efforts. During the Term, Mr. Kirsch will devote his best efforts and
his full business time and attention to the business and affairs of the Company, its
subsidiaries and affiliates. Mr. Kirsch will perform his duties and responsibilities to the
best of his ability in a diligent, trustworthy, businesslike and efficient manner. And, Mr.
Kirsch will at all times abide by and observe faithfully Ferro’s Legal and Ethical Policies.

4. Compensation and Benefits.

	 	A.	 	Salary. Mr. Kirsch’s initial salary will be at the rate of $500,000
per year (“Base Salary”). The Company will pay Mr. Kirsch’s Base Salary in
installments based on the Company’s practices as may be in effect from time to time.
The Governance, Nomination & Compensation Committee of the Board will review Mr.
Kirsch’s Base Salary annually and may, in its sole discretion, increase it. If so
increased, such increased salary shall thereafter be the Base Salary for purposes of
this Agreement.

	 	B.	 	Annual Bonus. During the Term, Mr. Kirsch will be eligible for an
annual bonus as provided in the Company’s annual incentive compensation plan, based on
the achievement of specified performance goals, as determined by the Governance,
Nomination & Compensation Committee of the Board. For fiscal year 2005, Mr. Kirsch
will be eligible for an annual bonus of up to 60% of his Base Salary. Payment of the
annual bonus pursuant to this paragraph 4.B for fiscal year 2004 will be prorated based
on the amount of time Mr. Kirsch actually worked during the year. Notwithstanding
anything to the contrary contained in this paragraph 4.B, Mr. Kirsch will be entitled
to a minimum bonus of 50% of his prorated Base Salary for fiscal year 2004 and 50% of
his full-year Base Salary for fiscal year 2005.

	 	C.	 	Other Incentive Plans. During the Term, Mr. Kirsch will be eligible
for awards under the Company’s 2003 Long-Term Incentive Compensation Plan, including
awards of stock options and performance shares, as and to the extent determined by the
Governance, Nomination & Compensation Committee of the Board.

	 	D.	 	Benefits. During the Term, Mr. Kirsch will be entitled to participate
in those benefit plans for which substantially all members of the senior management of
the Company are from time to time generally eligible, as determined from time to time
by the Governance, Nomination & Compensation Committee of the Board. Such package will
include -

	 	(1)	 	the Company’s dental plan, life insurance plan, health plan,
and disability plan in which senior management of the Company are currently
eligible to participate, and

(2) the Company’s supplemental defined contribution plan.

The Company reserves the right to make modifications in any of the plans described
in 4.D(1) above so long as such modifications are generally applicable to all
salaried employees of the Company and do not discriminate against highly-paid
employees of the Company.

Notwithstanding the foregoing, however, Mr. Kirsch’s rights to payments on
termination of his employment will be governed exclusively by paragraph 6 below and
the Change in Control Agreement (the “Change in Control Agreement”) dated as of the
date of this Agreement between Mr. Kirsch and the Company.

5. Term.

	 	A.	 	Initial Term. The Term will begin on October 18, 2004, and, unless
earlier terminated as provided below, will end on December 31, 2007.

	 	B.	 	Renewal Terms. On December 31, 2007, and on each anniversary of
December 31 thereafter, the Term will be extended for an additional period of one year,
unless the Term has ended pursuant to paragraph 5.C below or the Company has given Mr.
Kirsch written notice on or before September 30 of a given year that it elects to
terminate this Agreement as of the following December 31.

	 	C.	 	Earlier Termination. Notwithstanding the provisions of 5.A and 5.B
above, the Term will end early upon the first to occur of any of the following events:

(1) Mr. Kirsch’s death,

	 	(2)	 	the Company’s termination of Mr. Kirsch’s employment on account
of Disability (as defined in paragraph 7.B below),

(3) a Termination for Cause (as defined in paragraph 7.C below),

	 	(4)	 	a Termination Without Cause (as defined in paragraph 7.D
below), or

(5) a Voluntary Termination (as defined in paragraph 7.E below).

6. Post-Term Payments.

	 	A.	 	Severance Payments and Benefits. If the Term ends early pursuant to
paragraph 5.C on account of a Termination Without Cause, Mr. Kirsch will be entitled to
the following:

(1) A lump sum payment equal to two times –

(A) Mr. Kirsch’s then-current Base Salary, and

	 	(B)	 	Mr. Kirsch’s targeted annual bonus for the year
in which termination occurs.

	 	(2)	 	Continued participation in the Company’s group health plans (on
the same basis as active employees) until the earlier of –

	 	(A)	 	the date Mr. Kirsch becomes eligible to receive
comparable coverage under another employer’s or any other health plans,
or

	 	(B)	 	twenty-four (24) months after Mr. Kirsch’s
employment terminated.

	 	(3)	 	Outplacement services by a firm mutually agreed upon by the
Company and Mr. Kirsch, at the expense of the Company as determined by the
Company.

	 	(4)	 	All legal fees incurred as a result of Mr. Kirsch’s termination
of employment (including any fees incurred in seeking to enforce any right or
benefit provided by this Agreement, or in interpreting this Agreement).

Notwithstanding the provisions of this paragraph 6.A, the Company’s payment and
benefit continuation obligations under paragraph 6.A will cease –

	 	(1)	 	If Mr. Kirsch breaches any of his agreements contained in the
Company’s standard employee Confidentiality Agreement that Mr. Kirsch and the
Company will execute on Mr. Kirsch’s first day of employment; or

	 	(2)	 	If Mr. Kirsch declines to sign and return, or revokes, a
Release Agreement containing the Company’s standard noncompetition,
nonsolicitation, nondisparagement and confidentiality provisions the Company
ordinarily requires of executives who receive additional benefits or payments
on termination of employment.

Mr. Kirsch’s rights under any other employee benefit plans on Termination Without
Cause will be determined by the terms of such plans.

	 	B.	 	Other Terminations. If the Term ends for any reason other than
Termination Without Cause, then Mr. Kirsch will cease to have any rights to further
salary, bonus, or other benefits but will be entitled to –

	 	(1)	 	any Base Salary which has then accrued but remains unpaid and
any unexpired vacation days which have accrued under the Company’s vacation
policy but remain unused, as of the end of the Term,

	 	(2)	 	any plan benefits which by their terms extend beyond
termination of Mr. Kirsch’s employment (but only to the extent provided in any
such benefit plan in which Mr. Kirsch has participated as an employee of the
Company, and

	 	(3)	 	any benefits to which Mr. Kirsch is entitled under Part 6 of
Subtitle B of Title I of the Employee Retirement Income Security Act of 1974,
as amended (“COBRA”).

	 	C.	 	Change of Control Agreement. Notwithstanding the provisions of
paragraphs 6.A. and 6.B above, if Mr. Kirsch’s employment is terminated under the
Change of Control Agreement, then the terms of the Change of Control Agreement, and not
this Agreement, will govern.

	 	7.	 	Definitions. For purposes of this Agreement, the following terms have the meanings
set forth below where such terms are used in this Agreement and identified with initial
capital letters:

	 	A.	 	Cause. The term “Cause” means that, in the reasonable judgment of the
Board, prior to the termination of the Term, any of the following events have occurred:

	 	(1)	 	the willful and continued failure by Mr. Kirsch to
substantially perform his duties with the Company after written notification by
the Company,

	 	(2)	 	the willful engagement by Mr. Kirsch in conduct which is
demonstrably injurious to the Company, financially or otherwise,

	 	(3)	 	action or inaction by Mr. Kirsch that is a breach of fiduciary
duty, gross negligence or willful misconduct with respect to the Company or any
of its subsidiaries or the engagement by Mr. Kirsch in egregious misconduct
involving moral turpitude, or

	 	(4)	 	Mr. Kirsch’s material breach of any provision of this Agreement
or his Confidentiality Agreement.

For purposes of this Agreement, no act, or failure to act, on Mr. Kirsch’s part
shall be deemed “willful” unless done, or omitted to be done, by Mr. Kirsch not in
good faith and without reasonable belief that such action was in the best interest
of the Company.

	 	B.	 	Disability. The term “Disability” means Mr. Kirsch’s having become
unable (as determined by the Board in good faith) to perform regularly Mr. Kirsch’s
duties under this Agreement by reason of illness or incapacity.

	 	C.	 	Termination for Cause. The term “Termination for Cause” means the
Company’s termination of Mr. Kirsch’s employment for Cause.

	 	D.	 	Termination Without Cause. The term “Termination Without Cause” means
the Company’s termination of Mr. Kirsch’s employment other than a Termination for
Cause.

	 	E.	 	Voluntary Termination. The term “Voluntary Termination” means Mr.
Kirsch’s termination of Mr. Kirsch’s employment for any reason.

	 	8.	 	Withholding of Taxes. All payments under this Agreement will be subject to
withholding, deductions and contributions as required by law.

	 	9.	 	Successors and Assigns. This Agreement shall bind and inure to the benefit of and be
enforceable by Mr. Kirsch, the Company, and their respective heirs, executors, personal
representatives, successors and assigns, but neither party may assign any rights or delegate
any obligations under this Agreement without the prior written consent of the other party. Mr.
Kirsch hereby consents to the assignment by the Company of all of its rights and obligations
under this Agreement to any successor to the Company by merger or consolidation or purchase of
all or substantially all of the Company’s assets, provided such transferee or successor
assumes the liabilities of the Company under this Agreement.

	 	10.	 	Choice of Law. This Agreement shall be governed by the internal substantive laws, of
the State of Ohio.

	 	11.	 	Complete Agreement. This Agreement (together with the Change in Control Agreement
and the Confidentiality Agreement mentioned above) embodies the complete agreement and
understanding between the parties with respect to the subject matter of this Agreement and
supersedes any and all prior understandings, agreements or representations by or between the
parties, whether written or oral, that may be related to the subject matter of this Agreement
in any way.

To evidence their agreement and intention to be bound legally by this document, Ferro
Corporation and Mr. James F. Kirsch have signed and dated this Employment
Agreement as of the 18th day of October, 2004.

	 	 	 
	Mr. James F. Kirsch	 	Ferro Corporation
	/s/ James F. Kirsch

	 	By:   /s/ Hector R. Ortino   
	 

	 	 
	
 
	 	Hector R. Ortino

Chairman and

Chief Executive Officer
	 
	 	 

1

CHANGE IN CONTROL AGREEMENT

THIS AGREEMENT, dated as of October 18, 2004 (the “Effective Date”), is made by and between
Ferro Corporation, an Ohio corporation (the “Company”), and Mr. James F. Kirsch (the “Executive”).

WHEREAS, the Company considers it essential to the best interests of its shareholders to
foster the continued employment of key management personnel; and

WHEREAS, the Board recognizes that, as is the case with many publicly held corporations, the
possibility of a Change in Control exists and that such possibility, and the uncertainty and
questions which it may raise among management, may result in the departure or distraction of
management personnel to the detriment of the Company and its shareholders; and

WHEREAS, the Board has determined that appropriate steps should be taken to reinforce and
encourage the continued attention and dedication of members of the Company’s management, including
the Executive, to their assigned duties without distraction in the face of potentially disturbing
circumstances arising from the possibility of a Change in Control;

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
the Company and the Executive hereby agree as follows.

1. Defined Terms. The definitions of certain capitalized terms used in this Agreement
are provided in the last Section hereof.

2. Term of Agreement. The Term of this Agreement shall commence on the Effective Date
and shall continue in effect through December 31, 2004; provided, however, that
commencing on January 1, 2005, and each January 1 thereafter, the Term shall automatically be
extended for one additional year unless, not later than September 30 of the preceding year, the
Company or the Executive shall have given notice not to extend the Term; and further
provided, however, that if a Change in Control shall have occurred during the Term,
the Term shall expire no earlier than the last day of the twenty-fourth (24th) month following the
month in which such Change in Control occurred. Notwithstanding any other provision hereof, (a)
except as provided in Section 6.1 hereof, the Term shall expire upon any termination of the
Executive’s employment prior to a Change in Control and (b) the Term shall expire (and for purposes
of the application of the provisions of the Agreement, shall be deemed to have expired) on the date
of the Executive’s Retirement. Except as provided in Section 7A.1, the expiration of the Term
shall have no effect on the terms of the restrictive covenants set forth in Section 7A.

3. Company’s Covenants Summarized. In order to induce the Executive to remain in the
employ of the Company and in consideration of the Executive’s covenants set forth in Section 4
hereof, the Company agrees, under the conditions described herein, to pay the Executive the
Severance Payments and the other payments and benefits described herein. No Severance Payments
shall be payable under this Agreement unless there shall have been (or, under the terms of the
second sentence of Section 6.1 hereof, there shall be deemed to have been) a termination of the
Executive’s employment with the Company following a Change in Control and during the Term. This
Agreement shall not be construed as creating an express or implied contract of employment and
nothing contained in this Agreement shall prevent the Company at any time from terminating the
Executive’s right and obligation to perform service for the Company or prevent the Company from
removing the Executive from any position which the Executive holds in the Company, subject to the
obligation of the Company to make payments and provide benefits if and to the extent required under
this Agreement, which payments and benefits shall be full and complete liquidated damages for any
such action taken by the Company. The Executive specifically acknowledges that his employment by
the Company is employment-at-will, subject to termination by the Executive, or by the Company, at
any time with or without Cause. The Executive acknowledges that such employment-at-will status
cannot be modified except in a specific writing that has been authorized or ratified by the Board.

4. Certain Executive Covenants. The Executive agrees that, subject to the terms and
conditions of this Agreement, in the event of a Potential Change in Control during the Term, the
Executive intends to remain in the employ of the Company until there occurs a Change in Control.

5. Compensation Other Than Severance Payments.

5.1 Following a Change in Control and during the Term, during any period that the Executive
fails to perform the Executive’s full-time duties with the Company as a result of incapacity due to
physical or mental illness, the Company shall pay the Executive’s full salary to the Executive at
the rate in effect at the commencement of any such period, together with all compensation and
benefits payable to the Executive under the terms of any compensation or benefit plan, program or
arrangement maintained by the Company during such period, until the Executive’s employment is
terminated by the Company for Disability.

5.2 If the Executive’s employment shall be terminated for any reason following a Change in
Control and during the Term, the Company shall pay the Executive’s full salary to the Executive
through the Date of Termination at the rate in effect immediately prior to the Date of Termination
(without giving effect to any reduction in base salary, which reduction constitutes an event of
Good Reason) or, if higher, the highest base salary rate in effect with respect to the Executive at
any time during the calendar year immediately preceding the Change in Control, together with all
compensation and benefits payable to the Executive through the Date of Termination under the terms
of the applicable compensation and benefit plans, programs or arrangements of the Company or any
Affiliate thereof as in effect immediately prior to the Date of Termination (without giving effect
to any reduction in compensation or benefits, which reduction constitutes an event of Good Reason)
or, if more favorable to the Executive, as in effect immediately prior to the Change in Control.

5.3 If the Executive’s employment shall be terminated for any reason following a Change in
Control and during the Term, the Company shall pay to the Executive the Executive’s normal
post-termination compensation and benefits as such payments become due. Such post-termination
compensation and benefits shall be determined under, and paid in accordance with, the applicable
retirement, insurance and other compensation or benefit plans, programs and arrangements of the
Company or any Affiliate thereof as in effect immediately prior to the Date of Termination (without
giving effect to any adverse change in such plans, programs and arrangements, which adverse change
constitutes an event of Good Reason) or, if more favorable to the Executive, as in effect
immediately prior to the Change in Control.

5.4 In the event a Change in Control of the Company occurs during the Term, whether or not the
Executive’s employment thereafter terminates, the Company shall pay to the Executive, within five
days thereafter, an amount in cash, with respect to each grant of Performance Shares (as defined in
the Company’s Amended and Restated 1997 Performance Share Plan, as amended (the “Performance Share
Plan”) previously awarded to the Executive under the Performance Share Plan (or any predecessor
thereto) in respect of a Performance Period (as defined in the Performance Share Plan) which had
not expired immediately prior to such Change in Control (Performance Shares awarded in respect of
any such Performance Period being referred to as “Outstanding Performance Shares”), which amount
shall be equal to the excess (but not less than zero) of (a) over (b), where (a) equals the product
of (1) the number of Outstanding Performance Shares awarded to the Executive in respect of the
applicable Performance Period, (2) the “fair market value of the Common Stock” (as defined in the
Performance Share Plan) and (3) a fraction (not to exceed one) the numerator of which is the sum of
(x) the number of days which had elapsed in the applicable Performance Period as of the date of
such Change in Control plus (y) 730, and the denominator of which is the number of days in such
applicable Performance Period, and where (b) equals the value payable to the Executive under the
Performance Share Plan (or any predecessor thereto) in respect of such Outstanding Performance
Shares in connection with such Change in Control. Notwithstanding the preceding sentence, to the
extent that implementation of such sentence would preclude a Change in Control transaction intended
to qualify for “pooling of interests” accounting treatment from so qualifying, the cash value
otherwise payable to the Executive under this Section 5.4 shall be payable in shares of stock of
the Company or the corporation resulting from such transaction so as not to preclude such
transaction from so qualifying. Such shares shall have an initial value equal to the cash amount
otherwise payable to the Executive hereunder. For purposes of this Section 5.4, in the event
Executive’s employment terminate under circumstances described in the second sentence of Section
6.1, the determination of the number of Outstanding Performance Shares which had not expired
immediately prior to the Change in Control shall, instead, be determined as of the date which is
immediately prior to the date of occurrence of the Potential Change in Control. The provisions of
this Section 5.4 shall not affect in any manner the determination of amounts payable to the
Executive under the Performance Share Plan (or any predecessor thereto).

6. Severance Payments

6.1 If (i) the Executive’s employment is terminated following a Change in Control and during
the Term, other than (A) by the Company for Cause, (B) by reason of death, Disability or
Retirement, or (C) by the Executive without Good Reason, then the Company shall pay the Executive
the amounts, and provide the Executive the benefits, described in this Section 6.1 (“Severance
Payments”) and Section 6.4, in addition to any payments and benefits to which the Executive is
entitled under Section 5 hereof. For purposes of this Agreement, the Executive’s employment shall
be deemed to have been terminated following a Change in Control by the Company without Cause or by
the Executive with Good Reason, if, during the Term, (i) the Executive’s employment is terminated
by the Company without Cause after the occurrence of a Potential Change in Control and prior to a
Change in Control (whether or not a Change in Control ever occurs) and such termination was at the
request or direction of a Person who has entered into an agreement with the Company the
consummation of which would constitute a Change in Control or (ii) the Executive terminates his
employment for Good Reason after the occurrence of a Potential Change in Control and prior to a
Change in Control (whether or not a Change in Control ever occurs) and the circumstance or event
which constitutes Good Reason occurs at the request or direction of such Person.

(1) In lieu of any further salary payments to the Executive for periods subsequent to the Date
of Termination and in lieu of any severance benefit otherwise payable to the Executive, the Company
shall pay to the Executive a lump sum severance payment, in cash, equal to two (or, if less, the
number of full and partial years between the Date of Termination and the Executive’s scheduled date
of Retirement) times the sum of (i) the Executive’s base salary as in effect immediately prior to
the Date of Termination (without giving effect to any reduction in base salary, which reduction
constitutes an event of Good Reason) or, if higher, the highest base salary rate in effect with
respect to the Executive at any time during the calendar year immediately preceding the Change in
Control (the applicable amount being referred to herein as the “Base Salary”), and (ii) the
Executive’s target annual incentive compensation amount under the Company’s Annual Incentive
Compensation Plan or any successor thereto (the “Incentive Compensation Plan”) for the fiscal year
in which occurs the Date of Termination (without giving effect to any reduction in targeted annual
incentive compensation caused by an adverse change in the Executive’s Incentive Compensation Plan
participation, which adverse change constitutes an event of Good Reason) or, if higher, for the
fiscal year in which occurs the Change in Control. For this purpose, the targeted annual incentive
compensation amount shall be deemed to be sixty percent (60%) of Base Salary, or such greater
percentage thereof as may be applicable to the Executive at targeted levels, under the Incentive
Compensation Plan.

(2) For the twenty-four (24) month period immediately following the Date of Termination (or,
if less, the number of months between the Date of Termination and the Executive’s scheduled date of
Retirement) (the “Continuation Period”), the Company shall arrange to provide the Executive (and,
if applicable, his dependents) with benefits substantially similar to those provided to the
Executive (and, if applicable, his dependents) under the Benefit Plans immediately prior to the
Date of Termination (without giving effect to any reduction in benefits, which reduction
constitutes an event of Good Reason) or, if more favorable to the Executive, those provided to the
Executive (and, if applicable, his dependents) under the Benefit Plans immediately prior to the
Change in Control, at no greater cost to the Executive than the cost to the Executive immediately
prior to such date. For purposes of determining Executive’s rights under any such Benefit Plans
applicable to retired employees, the Executive shall be treated as having remained in employment
through the Continuation Period.

(3) The Company shall pay to the Executive a lump sum amount, in cash, equal to the pro rata
portion of the Executive’s annual incentive compensation for the calendar year in which the Date of
Termination occurs, such amount to be determined by multiplying the Executive’s annual incentive
compensation amount (determined pursuant to Section 6.1(1)(ii) above) by a fraction, the numerator
of which is the number of days in such calendar year which had elapsed as of the Date of
Termination and the denominator of which is 365; provided, however, that this
Section 6.1(3) shall have effect only if the Date of Termination occurs in a calendar year
following the calendar year in which occurs a Change in Control.

(4) In addition to the retirement benefits to which the Executive is entitled under the
Pension Plans or any successor plans thereto, the Company shall pay the Executive a lump sum
amount, in cash, equal to the present value as of the Date of Termination (calculated at a discount
rate equal to the discount rate used at the Date of Termination (or, if more favorable to the
Executive, immediately prior to the Change in Control) for computing the present value of commuted
payments under the Qualified Plan) of (a) the lump sum value (determined as of the Executive’s
Normal Retirement Age, using the same methods and assumptions used at the Date of Termination (or,
if more favorable to the Executive, immediately prior to the Change in Control) for purposes of the
Qualified Plan) of the retirement pension to which the Executive would have been entitled under the
terms of the Pension Plans (as in effect on the Date of Termination) as if the Executive’s
employment had continued through the Continuation Period at Base Salary and incentive compensation
levels equal to those set forth in Section 6.1(1) above (and including any other compensation, if
any, which is to be considered under the formulas applicable to such plans), assuming commencement
of payment of the Executive’s pension at Normal Retirement Age, reduced by (b) the lump sum value
(determined as of the Executive’s Normal Retirement Age using the methods and assumptions
hereinabove specified) of the retirement pension, if any, to which the Executive will be entitled
under the terms of the Pension Plans (as in effect on the Date of Termination), based upon
termination of the Executive’s employment as of the Date of Termination and assuming commencement
of payment of the Executive’s pension benefits at Executive’s Normal Retirement Age. The lump sum
value to be calculated under clause (a) of the immediately preceding sentence shall be determined
(y) under the assumption that the Executive is fully vested in his retirement pension under each
Pension Plan and (z) without regard to any termination of or amendments to any of such plans, which
termination or amendments are adopted on or after the date of a Change in Control, to the extent
any such termination or amendments adversely affect in any manner the computation of benefits
thereunder or are otherwise adverse to the Executive.

(5) The Company shall provide the Executive, at the Company’s sole cost and expense, with the
services of an outplacement firm mutually agreed upon between the Company and the Executive and
suitable to the Executive’s position until the first acceptance by the Executive of an offer of
employment.

(6) The Company shall continue to maintain officers’ indemnification insurance for the
Executive for a period of not less than four (4) years following the Date of Termination, the terms
and conditions of which shall be no less favorable than the terms and conditions of the officers’
indemnification insurance maintained by the Company for the Executive immediately prior to the date
on which the Change in Control occurs.

6.2 If the Executive’s employment is terminated following a Change in Control and during the
Term by reason of Disability, the Company shall pay to the Executive, in addition to any payments
and benefits to which the Executive is entitled under Section 5 hereof, (A) a cash lump sum, the
amount of which shall be determined under Section 6.1(3) hereof, (B) for the twenty-four month
period immediately following the Date of Termination, on a monthly basis, an aggregate amount in
cash equal to the excess (but not less than zero) of (i) one twenty-fourth (1/24) of the aggregate
amount determined under Section 6.1(1) hereof over (ii) the aggregate amount received by the
Executive during such month under the Company’s long-term disability plans and (C) the continuation
of benefits under the Benefit Plans for the Executive (and, if applicable, his dependents), as
determined under Section 6.1(2) hereof.

6.3 If the Executive’s employment is terminated following a Change in Control and during the
Term by reason of his death, the Company shall pay to the Executive’s legal representatives or
estate, or as may be directed by the legal representatives of his estate, as the case may be, in
addition to any payments and benefits to which the Executive is entitled under Section 5 hereof, a
cash lump sum equal to the amounts determined under Sections 6.1(1) and (3) above.

6.4 Whether or not the Executive becomes entitled to the Severance Payments, if any payment or
benefit received or to be received by the Executive in connection with a Change in Control or the
termination of the Executive’s employment (whether pursuant to the terms of this Agreement or any
other plan, arrangement or agreement with the Company, any Person whose actions result in a Change
in Control or any Person affiliated with the Company or such Person) (all such payments and
benefits, including the Severance Payments, being hereinafter called “Total Payments”) will be
subject (in whole or part) to the Excise Tax, then the Company shall pay to the Executive an
additional amount (the “Gross-Up Payment”) such that the net amount retained by the Executive,
after deduction of any Excise Tax on the Total Payments and any federal, state and local income and
employment taxes and Excise Tax upon the Gross-Up Payment, shall be equal to the Total Payments.
For purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to
pay federal income taxes at the highest marginal rate of federal income taxation in the calendar
year in which the Gross-Up Payment is to be made and state and local income taxes at the highest
marginal rate of taxation in the state and locality of the Executive’s residence on the Date of
Termination (or if there is no Date of Termination, then the date on which the Gross-up Payment is
calculated for purposes of this Section 6.4), net of the maximum reduction in federal income tax
which could be obtained from deduction of such state and local taxes.

(1) For purposes of determining whether any of the Total Payments will be subject to the
Excise Tax and the amount of such Excise Tax, (i) all of the Total Payments shall be treated as
“parachute payments” within the meaning of section 280G(b)(2) of the Code, unless in the opinion of
a nationally recognized legal or accounting firm selected by the Executive (“Tax Counsel”), such
other payments or benefits (in whole or in part) do not constitute parachute payments, including by
reason of section 280G(b)(4)(A) of the Code, (ii) all “excess parachute payments” within the
meaning of section 280G(b)(l) of the Code shall be treated as subject to the Excise Tax unless, in
the opinion of Tax Counsel, such excess parachute payments (in whole or in part) represent
reasonable compensation for services actually rendered, within the meaning of section 280G(b)(4)(B)
of the Code, in excess of the Base Amount allocable to such reasonable compensation, or are
otherwise not subject to the Excise Tax, and (iii) the value of any noncash benefits or any
deferred payment or benefit shall be determined by the accounting firm which was, immediately prior
to the Change in Control, the Company’s independent auditor (the “Auditor”) in accordance with the
principles of sections 280G(d)(3) and (4) of the Code. The Executive agrees to direct Tax Counsel
to submit its determination and detailed supporting calculations to both the Executive and the
Company as promptly as practicable. If Tax Counsel determines that any Excise Tax is payable by
the Executive and that a Gross-Up Payment is required, the Company shall pay the Executive the
required Gross-Up Payment within five (5) business days after receipt of such determination and
calculations. If Tax Counsel determines that no Excise Tax is payable by the Executive, it shall,
at the same time as it makes such determination, furnish the Executive with an opinion that the
Executive has substantial authority not to report any Excise Tax on the Executive’s federal income
tax return. Any determination by Tax Counsel as to the amount of the Gross-Up Payment shall be
binding upon the Executive and the Company.

(2) As a result of the uncertainty in the application of Section 4999 of the Code (or any
successor provision thereto) at the time of the initial determination by Tax Counsel hereunder, it
is possible that Gross-Up Payments which will not have been made by the Company should have been
made (an “Underpayment”). In the event that the Company exhausts its remedies pursuant to
paragraph (5) below and the Executive thereafter is required to make a payment of any Excise Tax,
the Executive may direct Tax Counsel to determine the amount of the Underpayment (if any) that has
occurred and to submit its determination and detailed supporting calculations to both the Executive
and the Company as promptly as possible. Any such Underpayment (plus any interest and penalties
attributable thereto) shall be paid by the Company to the Executive, or for the Executive’s
benefit, within five (5) business days after receipt of such determination and calculations. In
the event that (i) amounts are paid to the Executive pursuant to subsection (A) of this Section 6.4
and (ii) the Excise Tax is finally determined to be less than the amount taken into account
hereunder in calculating the Gross-Up Payment, the Executive shall repay to the Company, within
five (5) business days following the time that the amount of such reduction in Excise Tax is
finally determined, the portion of the Gross-Up Payment attributable to such reduction (plus that
portion of the Gross-Up Payment attributable to the Excise Tax and federal, state and local income
and employment taxes imposed on the Gross-Up Payment being repaid by the Executive), to the extent
that such repayment results in a dollar-for-dollar reduction in the Executive’s taxable income and
wages for purposes of federal, state and local income and employment taxes, plus interest on the
amount of such repayment at the rate provided in section 1274(b)(2)(B) of the Code.

(3) The Executive and the Company shall each provide Tax Counsel access to and copies of any
books, records and documents in the possession of the Company or the Executive, as the case may be,
reasonably requested by Tax Counsel, and otherwise cooperate with Tax Counsel in connection with
the preparation and issuance of the determination contemplated by paragraphs (1) and (2) above.

(4) The fees and expense of Tax Counsel for its services in connection with the determinations
and calculations contemplated by this Section 6.4 shall be borne by the Company. If such fees and
expenses are initially paid by the Executive, the Company shall reimburse the Executive the full
amount of such fees and expenses within ten business days after receipt from the Executive of a
statement therefor and reasonable evidence of the Executive’s payment thereof.

(5) The Executive agrees to notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of a Gross-Up Payment. Such
notification shall be given as promptly as practicable but no later than ten (10) business days
after the Executive actually receives notice of such claim. The Executive agrees to further
apprise the Company of the nature of such claim and the date on which such claim is requested to be
paid (in each case, to the extent known by the Executive). The Executive agrees not to pay such
claim prior to the earlier of (a) the expiration of the 30-calendar-day period following the date
on which the Executive gives such notice to the Company and (b) the date that any payment with
respect to such claim is due. If the Company notifies the Executive in writing at least five
business days prior to the expiration of such period that it desires to contest such claim, the
Executive agrees to:

(a) provide the Company with any written records or documents in the Executive’s
possession relating to such claim reasonably requested by the Company;

(b) take such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including without limitation accepting
legal representation with respect to such claim by an attorney competent in respect of the
subject matter and reasonably selected by the Company;

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

(d) permit the Company to participate in any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including interest and penalties) incurred in connection with such contest and shall
indemnify and hold the Executive harmless, on an after-tax basis, from and against any Excise Tax
or income tax, including interest and penalties with respect thereto, imposed as a result of such
representation and payment of costs and expenses. Without limiting the foregoing provisions of
this paragraph (5), the Company shall control all proceedings taken in connection with the contest
of any claim contemplated by this paragraph (5) and, at its sole option, may pursue or forego any
and all administrative appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim (provided, however, that the Executive may participate
therein at the Executive’s own cost and expense) and may, at its option, either direct the
Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible
manner, and the Executive agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as
the Company shall determine; provided, however, that if the Company directs the
Executive to pay the tax claimed and sue for a refund, the Company shall advance the amount of such
payment to the Executive on an interest-free basis and shall indemnify and hold the Executive
harmless, on an after-tax basis, from any Excise Tax or income tax, including interest or penalties
with respect thereto, imposed with respect to such advance; and provided further,
however, that any extension of the statute of limitations relating to payment of taxes for
the Executive’s taxable year with respect to which the contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company’s control of any such contested
claim shall be limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the Internal Revenue Service or any other taxing authority.

(6) If, after the receipt by the Executive of an amount advanced by the Company pursuant to
paragraph (5) above, the Executive receives any refund with respect to such claim, the Executive
agrees (subject to the Company’s complying with the requirements of paragraph (5) above) to
promptly pay to the Company the amount of such refund (together with any interest paid or credited
thereon after any taxes applicable thereto). If, after the Executive’s receipt of an amount
advanced by the Company pursuant to paragraph (5) above, a determination is made that the Executive
is not entitled to any refund with respect to such claim and the Company does not notify the
Executive in writing of its intent to contest such denial of refund prior to the expiration of
thirty (30) calendar days after such determination, then such advance shall be forgiven and shall
not be required to be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid pursuant to this Section 6.4.

6.5 The payments provided in subsections (1), (3) and (4) of Section 6.1 hereof shall be made
not later than the fifth day following the Date of Termination.

6.6 The Company also shall pay to the Executive all legal fees and expenses incurred by the
Executive in disputing in good faith any issue hereunder relating to the termination of the
Executive’s employment, in seeking in good faith to obtain or enforce any benefit or right provided
by this Agreement or, except as otherwise provided in Section 6.4 hereof, in connection with any
tax audit or proceeding to the extent attributable to the application of section 4999 of the Code
to any payment or benefit provided hereunder. Such payments shall be made within five (5) business
days after delivery of the Executive’s written requests for payment accompanied with such evidence
of fees and expenses incurred as the Company reasonably may require.

7. Security. To secure payment of the benefits provided for in this Agreement, within
five days following the occurrence of a Potential Change in Control, the Company agrees to
establish an irrevocable escrow account (the “Escrow Account”) at National City Bank (the “Escrow
Agent”), Cleveland, Ohio, or, in the event that National City Bank shall resign, any other
financial institution satisfactory to the Company and the Executive (or the Executive’s executor or
other personal representative) or appointed by a court of competent jurisdiction and to keep on
deposit in the Escrow Account such amount, if any, as shall at all times be at least equal to the
required security hereinafter provided for. The maximum amount of required security to be kept on
deposit at any time shall be (A) an amount equal to twelve (12) times the Executive’s base salary
in effect from time to time (the “Maximum Amount”) or (B) if there has been determination with the
Executive’s written consent or by a final arbitral award rendered in accordance with this Agreement
that a specific lesser amount fully secures the Company’s obligations under this Agreement, then
such specific lesser amount or, in the case that the Company has fully performed its obligations
under this Agreement, nothing. Subject to the provisions hereof, the Maximum Amount of required
security shall be kept on deposit at all times after (i) the expiration of five days following the
occurrence of a Potential Change in Control or (ii) a Change in Control, whichever occurs earlier.

Until the Maximum Amount of required security is required to be kept on deposit, the Company
shall not be obliged to maintain any amount on deposit in the Escrow Account; provided,
however, that if a Potential Change in Control shall occur prior to a Change in Control and
if a Change in Control does not occur within twelve months after the most recent occurrence of a
Potential Change in Control, the Escrow Agent shall be entitled, upon receipt of a written request
by the Company, to return to the Company any amounts delivered to the Escrow Agent pursuant to this
Section 7 (or reduce the amount of any letter of credit). Except as provided in the immediately
preceding sentence and in the penultimate paragraph of this Section 7, amounts deposited in the
Escrow Account shall be paid out by the Escrow Agent only to the Executive, in such amounts as the
Executive shall certify to the Escrow Agent as amounts that the Company is in default in paying the
Executive under this Agreement, or to the Company, to the extent that the amount on deposit exceeds
the Maximum Amount of required security as specified in joint written instructions from the
Executive and the Company to the Escrow Agent or in a final arbitral award rendered in accordance
with this Agreement. Prior to the occurrence of a Change in Control, unless the Executive becomes
entitled to receive severance payments and benefits in accordance with the terms of the second
sentence of Section 6.1 hereof, the Executive shall have no right to receive, and shall have no
right to have any access to, any portion of the assets held in the Escrow Account.

The Company shall have the right, at any time and from time to time, to instruct the Escrow
Agent to invest all or any part of the funds in the Escrow Account in time deposits or certificates
of deposit with, or repurchase or other obligations of, National City Bank, in its individual
corporate capacity, or any of its domestic or foreign branches, or any other “bank” (as determined
by the Company), or obligations issued or guaranteed by the United States or any of its agencies or
instrumentalities, provided that no such investment shall be for a period in excess of ninety (90)
days. The Escrow Agent shall have no liability whatsoever for following the instructions of the
Company regarding any such investment, or for any loss in value of the Escrow Account as a
consequence of any such investment or the liquidation thereof.

The Company may meet its obligation to keep amounts on deposit in the Escrow Account through
(a) deposits of assets; (b) one or more letters of credit deposited in escrow; or (c) any
combination of the foregoing. The Company shall have the right, at any time and from time to time,
to substitute one form of permitted deposit in the Escrow Account for another form of permitted
deposit in the Escrow Account.

Intending that the Escrow Agent and its successors and assigns shall have the right to rely
hereon, the Executive consents to the agreement pertaining to the Escrow Account to be maintained
pursuant to this Section 7 (the “Escrow Agreement”) substantially in the form attached hereto as
Exhibit A, and consents to the amendment and restatement, pursuant to the Escrow Agreement, of all
prior escrow agreements which have been made between the Company and National City Bank (in any
capacity) and of which the Executive is a beneficiary. The Executive further consents to
amendments, modifications, restatements and clarifications of the Escrow Agreement from time to
time, so long as, after giving effect to each such amendment, modification, restatement or
clarification, the then aggregate amount (whether in the form of cash, investments which the
Company has instructed the Escrow Agent to make as hereinbefore provided (the amount of which shall
be determined, in each case, at the time of the investment), amounts available to be drawn by the
Escrow Agent under one or more letters of credit, or any combination of the foregoing) credited to
the Escrow Account by the Escrow Agent would not be less than the required security provided for in
this Section 7. The Escrow Agent and its successors and assigns shall have the right to rely upon
such consent of the Executive.

7A. Restrictive Covenants of Executive.

7A.1 Restrictions on Competition. Whether or not a Change in Control shall have
occurred, the Executive shall be subject to the restrictive covenants set forth in this Section
7A.1; provided, however, that such restrictions shall cease to apply and shall be
of no further force and effect from and after any termination of Executive’s employment for which
he is entitled to receive Severance Payments under Section 6.1 hereof.

(a) The Executive shall not, at any time during the Restricted Period (as defined below),
accept employment with, own an interest in, form a partnership or joint venture with, consult with
or otherwise assist any person or enterprise that manufactures or sells products (“Competitive
Products”) similar to, or competitive with, the products manufactured or sold by the Company on the
Date of Termination.

(b) The “Restricted Period” means:

(i) Twenty-four (24) months after the Date of Termination; and

(ii) An additional twelve (12) months thereafter (the “Additional Period”) if:

(1) the Company has not terminated the Executive’s employment
because of Disability;

(2) the Company elects to impose the Additional Period by
providing to the Executive written notice of such election not later
than two (2) months after the termination of the Executive’s
employment; and

(3) the Company pays the Executive, in twelve (12) monthly
installments during the Additional Period, an aggregate amount equal
to the Executive’s Base Salary for the calendar year in which the
Executive’s employment terminated; and

(4) in addition to the time period(s) set forth in (i) and, if
applicable, (ii) above, the remaining period of time, if any, until
the Executive is 60 years old if:

(A) this Agreement has terminated by reason of the
Executive’s retirement before the Normal Retirement Age;

(B) the Executive is an officer of the Company; and

(C) the Executive has elected to receive his or her
early retirement benefit on the basis of the increased
“Post-1995 Factors” set forth in Section 4 of the Company’s
Excess Benefits Plan, as such provision may be amended from
time to time.

(c) Section 7A.1(a) above will not apply if the relevant person or enterprise acquires a
business or product line that manufactures or sells Competitive Products after the commencement of
the Executive’s employment or other relationship with such person or enterprise and the Executive
does not participate in any way in the business of the Competitive Products for twenty-four months
after the termination of the Executive’s employment and, at the request of the Company, the
Executive and the relevant person or enterprise certify to the Company in writing that the
Executive has and will comply with the restrictions of this Section 7A.1.

7A.2 Non-Disparagement. The Executive agrees that during his employment and at all
times thereafter, he will not, unless compelled by a court or governmental agency, make, or cause
to be made, any statement, observation or opinion, or communicate any information (whether oral or
written) regarding the Company, or its Affiliates, together with their respective directors,
partners, officers or employees (such entities, collectively, the “Ferro Related Persons”), which
disparages the reputation or business of the Company or the Ferro Related Persons;
provided, however, that such restriction shall not apply to statements,
observations, opinions or communications made in good faith in the fulfillment of the Executive’s
duties with the Company and provided further that such restriction shall cease to
apply and shall be of no further force and effect from and after the occurrence of a Change in
Control.

7A.3 Nothing in this Section 7A eliminates or affects any right to payments or benefits that
the Executive otherwise has under other provisions of this Agreement and nothing in this Section 7A
gives the Executive the right to any payment or benefit under other provisions of this Agreement
that he does not otherwise have.

8. Termination Procedures and Compensation During Dispute.

8.1 Notice of Termination. After a Change in Control and during the Term, any
purported termination of the Executive’s employment (other than by reason of death) shall be
communicated by written Notice of Termination from one party hereto to the other party hereto in
accordance with Section 11 hereof. For purposes of this Agreement, a “Notice of Termination” shall
mean a notice which shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision so indicated. Further, a Notice of
Termination for Cause is required to include a copy of a resolution duly adopted by the affirmative
vote of not less than three-quarters (3/4) of the entire membership of the Board at a meeting of
the Board which was called and held for the purpose of considering such termination (after
reasonable notice to the Executive and an opportunity for the Executive, together with the
Executive’s counsel, to be heard before the Board) finding that, in the good faith opinion of the
Board, the Executive was guilty of conduct set forth in clause (i) or (ii) of the definition of
Cause herein, and specifying the particulars thereof in detail.

8.2 Date of Termination. “Date of Termination,” with respect to any purported
termination of the Executive’s employment after a Change in Control and during the Term, shall mean
(i) if the Executive’s employment is terminated for Disability, thirty (30) days after Notice of
Termination is given (provided that the Executive shall not have returned to the full-time
performance of the Executive’s duties during such thirty (30) day period), and (ii) if the
Executive’s employment is terminated for any other reason, the date specified in the Notice of
Termination (which, in the case of a termination by the Company, shall not be less than thirty (30)
days (except in the case of a termination for Cause) and, in the case of a termination by the
Executive, shall not be less than fifteen (15) days nor more than sixty (60) days, respectively,
from the date such Notice of Termination is given).

8.3 Dispute Concerning Termination. If within fifteen (15) days after any Notice of
Termination is given, or, if later, prior to the Date of Termination (as determined without regard
to this Section 8.3), the party receiving such Notice of Termination notifies the other party that
a dispute exists concerning the termination, the Date of Termination shall be extended until the
earlier of (i) the date on which the Term ends or (ii) the date on which the dispute is finally
resolved, either by mutual written agreement of the parties or by a final judgment, order or decree
of an arbitrator or a court of competent jurisdiction (which is not appealable or with respect to
which the time for appeal therefrom has expired and no appeal has been perfected);
provided, however, that the Date of Termination shall be extended by a notice of
dispute given by the Executive only if such notice is given in good faith and the Executive pursues
the resolution of such dispute with reasonable diligence.

8.4 Compensation During Dispute. If a purported termination occurs following a Change
in Control and during the Term and the Date of Termination is extended in accordance with Section
8.3 hereof, the Company shall continue to pay the Executive the full compensation in effect when
the notice giving rise to the dispute was given (including, but not limited to, salary) and
continue the Executive as a participant in all compensation, benefit and insurance plans in which
the Executive was participating when the notice giving rise to the dispute was given, until the
Date of Termination, as determined in accordance with Section 8.3 hereof. Amounts paid under this
Section 8.4 are in addition to all other amounts due under this Agreement (other than those due
under Section 5.2 hereof) and shall not be offset against or reduce any other amounts due under
this Agreement.

9. No Mitigation. The Company agrees that, if the Executive’s employment with the
Company terminates during the Term, the Executive is not required to seek other employment or to
attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to
Section 6 hereof or Section 8.4 hereof. Further, the amount of any payment or benefit provided for
in this Agreement shall not be reduced by any compensation earned by the Executive as the result of
employment by another employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company, or otherwise.

10. Successors; Binding Agreement.

10.1 In addition to any obligations imposed by law upon any successor to the Company, the
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation
or otherwise) to all or substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. Failure of the
Company to obtain such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle the Executive to compensation from the
Company in the same amount and on the same terms as the Executive would be entitled to hereunder if
the Executive were to terminate the Executive’s employment for Good Reason after a Change in
Control, except that, for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Date of Termination.

10.2 This Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If the Executive shall die while any amount would still be payable to the
Executive hereunder (other than amounts which, by their terms, terminate upon the death of the
Executive) if the Executive had continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to the executors, personal
representatives or administrators of the Executive’s estate.

11. Notices. For the purpose of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by United States registered mail, return receipt requested, postage prepaid,
addressed, if to the Executive, to the address inserted below the Executive’s signature on the
final page hereof and, if to the Company, to the address set forth below, or to such other address
as either party may have furnished to the other in writing in accordance herewith, except that
notice of change of address shall be effective only upon actual receipt:

To the Company:

Ferro Corporation

1000 Lakeside Avenue

Cleveland, Ohio 44114

Attention: Chief Executive Officer

12. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and signed by the
Executive and such officer as may be specifically designated by the Board. No waiver by either
party hereto at any time of any breach by the other party hereto of, or of any lack of compliance
with, any condition or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. This Agreement supersedes any other agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof which have been made by
either party. The validity, interpretation, construction and performance of this Agreement shall
be governed by the laws of the State of Ohio. All references to sections of the Exchange Act or
the Code shall be deemed also to refer to any successor provisions to such sections. Any payments
provided for hereunder shall be reduced to the extent necessary so that the Company may satisfy any
applicable withholding required under federal, state or local law and any additional withholding to
which the Executive has agreed. The obligations of the Company and the Executive under this
Agreement which by their nature may require either partial or total performance after the
expiration of the Term (including, without limitation, those under Section 6 hereof) shall survive
such expiration.

13. [Intentionally left blank.]

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

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

16. Settlement of Disputes; Arbitration.

16.1 Any further dispute or controversy arising under or in connection with this Agreement
shall be settled exclusively by arbitration in Cleveland, Ohio, in accordance with the rules of the
American Arbitration Association then in effect; provided, however, that all
arbitration expenses shall be borne by the Company and the evidentiary standards set forth in this
Agreement shall apply. Judgment may be entered on the arbitrator’s award in any court having
jurisdiction. Notwithstanding any provision of this Agreement to the contrary, the Executive shall
be entitled to seek specific performance of the Executive’s right to be paid until the Date of
Termination during the pendency of any dispute or controversy arising under or in connection with
this Agreement.

16.2 Notwithstanding the provisions of Section 16.1 above, the Company shall be entitled, in
addition to any other remedy or remedies available to the Company at law or in equity, to
injunctive relief, without the necessity of proving the inadequacy of monetary damages or the
posting of any bond or security, enjoining or restraining Executive from any violation of
threatened violation of the covenants contained in Section 7A hereof.

Moreover, in the event that the Executive breaches Section 7A.2 of this Agreement, the
Executive shall pay to the Company an amount in cash equal to fifty percent (50%) of the value of
(i) if the Executive is employed by the Company at the time of such violation, the aggregate
severance payments and benefits that would have been paid to the Executive had his employment been
terminated on the date on which the Executive violated such Section 7A.2 under circumstances
entitling the Executive to the severance payments and benefits provided under Section 6.1 hereof,
(ii) if, prior to the date on which the Executive violates such Section 7A.2, the Executive’s
employment with the Company shall have been terminated under circumstances that do not entitle the
Executive to the severance payments and benefits provided under Section 6.1 hereof, the aggregate
severance payments and benefits that would have been paid to the Executive had his employment been
terminated under circumstances entitling him to severance payments and benefits under Section 6.1
hereof, calculated as of the effective date of his actual termination of employment or (ii) if the
Executive’s employment with the Company shall have been terminated prior to the date on which he
violates such Section 7A.2 under circumstances entitling him to severance payments and benefits
under Section 6.1 hereto, the aggregate severance payments and benefits he is entitled to receive
thereunder.

The provisions of this Section 16.2 shall not constitute a waiver by the Company of any rights
to damages or other remedies which it may have pursuant to this Agreement or otherwise. Executive
further acknowledges and agrees that due to the uniqueness of Executive’s services and confidential
nature of the information Executive will possess the covenants set forth herein are reasonable and
necessary for the protection of the business and good will of the Companies.

17. Definitions. For purposes of this Agreement, the following terms shall have the
meanings indicated below:

(a) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under
Section 12 of the Exchange Act.

(b) “Auditor” shall have the meaning set forth in Section 6.4 hereof.

(c) “Base Amount” shall have the meaning set forth in section 280G(b)(3) of the Code.

(d) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the
Exchange Act.

(e) “Benefit Plan” shall mean each perquisite, benefit or compensation plan (in
addition to the Incentive Compensation Plan), including the Pension Plans, dental plan, life
insurance plan, health and accident plan or disability plan of the Company (but excluding
the Company’s stock option plan and Performance Share Plan, participation in which shall be
at the sole discretion of the Board or any applicable committee thereof).

(f) “Board” shall mean the Board of Directors of the Company.

(g) The Company shall have “Cause” for termination of the Executive’s employment only
(i) if such termination shall have been the result of an act or acts by the Executive which
have been found in an applicable court to constitute a felony; or (ii) if such termination
shall have been the result of an act or acts of dishonesty by the Executive resulting or
intended to result directly or indirectly in significant gain or personal enrichment to the
Executive at the expense of the Company; or (iii) upon the willful and continued failure by
the Executive substantially to perform his duties with the Company (other than any such
failure resulting from incapacity due to mental or physical illness) after a demand in
writing for substantial performance is delivered by the Board, which demand specifically
identifies the manner in which the Board believes that the Executive has not substantially
performed his duties, and such failure results in demonstrably material injury to the
Company. The Executive’s employment shall in no event be considered to have been terminated
by the Company for Cause if such termination took place as the result of (x) bad judgment or
negligence, or (b) any act or omission believed in good faith to have been in or not opposed
to the interest of the Company. The Executive shall not be deemed to have been terminated
for Cause unless and until there shall have been delivered to him a copy of a resolution
duly adopted by the affirmative vote of not less than three-quarters of the entire
membership of the Board at a meeting of the Board (after reasonable notice to the Executive
and an opportunity for him, together with his counsel, to be heard before the Board),
finding that in the good faith opinion of the Board the Executive was guilty of conduct set
forth above in clauses (i), (ii) or (iii) and specifying the particulars thereof in detail.
Further, in the event of a dispute concerning the application of this provision, no claim by
the Company that Cause exists shall be given effect unless the Company establishes to the
Board by clear and convincing evidence that Cause exists.

(h) A “Change in Control” shall be deemed to have occurred if the event set forth in
any one of the following paragraphs shall have occurred:

(i) any Person is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Company representing 25% or more of the
combined voting power of the Company’s then outstanding securities; or

(ii) during any period of two consecutive years, the following
individuals cease for any reason to constitute a majority of the number of
directors then serving: individuals who, on the Effective Date, constitute
the Board and any new director (other than a director designated by a person
who has entered into an agreement or arrangement with the Company to effect
a transaction described in clause (i) or (iii) of this sentence) whose
appointment or election by the Board or nomination for election by the
Company’s shareholders was approved or recommended by a vote of at least
two-thirds (2/3) of the directors then still in office who either were
directors on the date hereof or whose appointment, election or nomination
for election was previously so approved or recommended; or

(iii) there is consummated a merger or consolidation of the Company or
any direct or indirect subsidiary of the Company with any other corporation,
other than a merger or consolidation which would result in the holders of
the voting securities of the Company outstanding immediately prior thereto
holding securities which represent immediately after such merger or
consolidation more than fifty percent (50%) of the combined voting power of
the voting securities of either the Company or the other entity which
survives such merger or consolidation or the parent of the entity which
survives such merger or consolidation; or

(iv) there is consummated an agreement for the sale or disposition by
the Company of all or substantially all of the Company’s assets.

(i) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

(j) “Company” shall mean Ferro Corporation and, except in determining under Section
16(g) hereof whether or not any Change in Control of the Company has occurred, shall include
any successor to its business and/or assets which assumes and agrees to perform this
Agreement by operation of law, or otherwise.

(k) “Date of Termination” shall have the meaning set forth in Section 8.2 hereof.

(l) “Disability” shall be deemed the reason for the termination by the Company of the
Executive’s employment, if, as a result of the Executive’s incapacity due to physical or
mental illness, the Executive shall have been absent from the full-time performance of the
Executive’s duties with the Company for a period of six (6) consecutive months, the Company
shall have given the Executive a Notice of Termination for Disability, and, within thirty
(30) days after such Notice of Termination is given, the Executive shall not have returned
to the full-time performance of the Executive’s duties.

(m) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time
to time.

(n) “Excise Tax” shall mean any excise tax imposed under Section 4999 of the Code.

(o) “Executive” shall mean the individual named in the first paragraph of this
Agreement.

(p) “Good Reason” for termination by the Executive of the Executive’s employment shall
mean the occurrence (without the Executive’s express written consent) after any Change in
Control, or prior to a Change in Control under the circumstances described in the second
sentence of Section 6.1 hereof (treating all references in paragraphs (i) through (vii)
below to a “Change in Control” as references to a “Potential Change in Control”), of any one
of the following acts by the Company, or failures by the Company to act, unless, in the case
of any act or failure to act described in paragraph (i), (v), (vi) or (vii) below, such act
or failure to act is corrected prior to the Date of Termination specified in the Notice of
Termination given in respect thereof:

(i) the assignment to the Executive of any duties inconsistent with the
Executive’s status as a senior executive officer of the Company, a change in
Executive’s title or a substantial adverse alteration in the nature or
status of the Executive’s responsibilities or reporting relationship, in
each case from those in effect immediately prior to the Change in Control,
or the removal of Executive from or failure to re-elect Executive to
positions held by Executive immediately prior to the Change in Control
(except in connection with termination of Executive’s employment for Cause,
Disability or Retirement or as a result of Executive’s death or voluntary
termination without Good Reason);

(ii) a reduction by the Company in the Executive’s annual base salary
as in effect immediately prior to the Change in Control or as the same may
be increased from time to time;

(iii) the relocation of the Executive’s principal place of employment
to a location which increases the Executive’s one-way commuting distance by
more than twenty-five (25) miles over his one-way commuting distance
immediately prior to the Change in Control, except for required travel on
the Company’s business to an extent substantially consistent with the
Executive’s business travel obligations immediately prior to the Change in
Control;

(iv) the failure by the Company to pay to the Executive any portion of
the Executive’s current compensation, or to pay to the Executive any portion
of an installment of deferred compensation under any deferred compensation
program of the Company, within seven (7) days of the date such compensation
is due;

(v) the failure by the Company to continue in effect any Benefit Plan
in which the Executive participates immediately prior to the Change in
Control unless an equitable arrangement (embodied in an ongoing substitute
or alternative plan) has been made with respect to such Benefit Plan, or the
failure by the Company to continue the Executive’s participation therein (or
in such substitute or alternative plan) on a basis not materially less
favorable, both in terms of the amount or timing of payment of benefits
provided and the level of the Executive’s participation relative to other
participants, as existed immediately prior to the Change in Control;
provided, however, that the Company may make modifications
in such Benefit Plans so long as such modifications (a) are generally
applicable to all salaried employees of the Company and any Person in
control of the Company and (b) do not discriminate against highly-paid
employees of the Company.

(vi) the failure by the Company to provide the Executive with the
number of paid vacation days to which the Executive is entitled in
accordance with the Company’s normal vacation policy in effect immediately
prior to the Change in Control (or pursuant to a special vacation agreement
or arrangement then in effect with respect to the Executive);

(vii) any purported termination of the Executive’s employment which is
not effected pursuant to a Notice of Termination satisfying the requirements
of Section 8.1 hereof; for purposes of this Agreement, no such purported
termination shall be effective; or

(viii) any failure of the Company to obtain assumption of this
Agreements, as set forth in Section 9.1 hereof;

provided, however, that a voluntary resignation by the Executive at
any time during the ninety-day period commencing on the first anniversary of the
Change in Control shall conclusively constitute Good Reason. For purposes of any
determination regarding the existence of Good Reason, any claim by the Executive
that Good Reason exists shall be presumed to be correct unless the Company
establishes to the Board by clear and convincing evidence that Good Reason does not
exist. The Executive’s right to terminate the Executive’s employment for Good
Reason shall not be affected by the Executive’s incapacity due to physical or mental
illness. The Executive’s continued employment shall not constitute consent to, or a
waiver of rights with respect to, any act or failure to act constituting Good Reason
hereunder.

(q) “Gross-Up Payment” shall have the meaning set forth in Section 6.4 hereof.

(r) “Normal Retirement Age” shall have the meaning provided for in the Qualified Plan.

(s) “Notice of Termination” shall have the meaning set forth in Section 8.1 hereof.

(t) “Pension Plans” shall mean, collectively, the tax-qualified, supplemental and
excess benefit pension plan maintained by the Company and any other plan or agreement
entered into between the Executive and the Company which is designed to provide the
Executive with supplemental retirement benefits.

(u) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not
include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary
holding securities under an employee benefit plan of the Company or any of its Affiliates,
(iii) an underwriter temporarily holding securities pursuant to an offering of such
securities, or (iv) a corporation owned, directly or indirectly, by the shareholders of the
Company in substantially the same proportions as their ownership of stock of the Company.

(v) “Potential Change in Control” shall be deemed to have occurred if the event set
forth in any one of the following paragraphs shall have occurred:

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

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

(iii) any Person becomes the Beneficial Owner, directly or indirectly, of
securities of the Company representing 20% or more of either the then outstanding
 shares of common stock of the Company or the combined voting power of the Company’s
then outstanding securities;

(iv) any Person commences a solicitation (as defined in Rule 14a-1 of the
General Rules and Regulations under the Exchange Act) of proxies or consents which
has the purpose of effecting or would (if successful) result in a Change in Control;

(v) a tender or exchange offer for voting securities of the Company, made by a
Person, is first published or sent or given (within the meaning of Rule 14d-2(a) of
the General Rules and Regulations under the Exchange Act); or

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

(w) “Qualified Plan” shall mean the Ferro Corporation Retirement Plan (001).

(x) “Retirement” shall mean the termination of the Executive’s employment in accordance
with the Company’s mandatory retirement policy as in effect immediately prior to the Change
in Control.

(y) “Severance Payments” shall have the meaning set forth in Section 6.1 hereof.

(z) “Tax Counsel” shall have the meaning set forth in Section 6.4 hereof.

(aa) “Term” shall mean the period of time described in Section 2 hereof (including any
extension, continuation or termination described therein).

(bb) “Total Payments” shall mean those payments so described in Section 6.4 hereof.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

FERRO CORPORATION

	 	 	 
	By:	 	/s/ Hector R. Ortino
	Name:

	 	Hector R. Ortino

	 	 	 	Title: Chairman and Chief Executive Officer

	 	 	 
	 	 	/s/ James F. Kirsch
	Executive:

Title:

	 	Mr. James F. Kirsch

President and Chief Operating Officer
	 
	 	 

2

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