Libbey Inc. Supplemental Retirement Benefit Plan

1.01

The purpose of this Libbey Inc. Supplemental Retirement Benefit Plan (the “Plan”) is to provide certain retirement and related benefits to certain Eligible Employees of Libbey Inc. (the “Company”) whose benefits under the Libbey Inc. Salary Retirement Plan through December 31, 1997 (“1997 Prior Pension Plan”), and under the Libbey Inc. Cash Balance Plan on or after January 1, 1998 (the “Pension Plan”), are or may be subject to certain limitations, as hereinafter described.

1.02.

The plan provides “Excess Benefits” described in Section 3.01 hereof, and “Supplemental Benefits” described in Section 3.02 hereof.

2.01

Unless otherwise expressly defined in this Plan, each word or term that is defined in the Pension Plan shall have the same meaning when used in this Plan.

2.02

As used in this Plan, the term “Board” means the Board of Directors of Libbey Inc. or any committee of said Board to which all or any of its powers or duties under the Plan may be delegated.

2.03

As used in this Plan, the term “Eligible Employee” means an Employee or former Employee of the Company with respect to whom one or more benefits are or will become payable under this Plan. No employee hired by the Company on or after January 1, 2006 shall become an Eligible Employee hereunder.

2.04

As used in this Plan, the term “Date of Termination” means the date on which the Eligible Employee incurs a “separation from service” within the meaning of Section 409A of the Code.

2.05

As used in this Plan, the term “Initial Election Date” means January 30 of the year next following the year in which an employee first becomes an Eligible Employee under this Plan in a year beginning on or after January 1, 2008.

3.01

Excess Benefits under the Plan are benefits unavailable under the Pension Plan by reason of the application of Section 415 of the Code, which imposes limitations on the amount of contributions or benefits that may be provided with respect to a participant under a qualified retirement plan.

(a)

Supplemental Benefits under the Plan are benefits unavailable under the Pension Plan by reason of the application of Section 401(a)(17) of the Code, which imposes limitations on the amounts of annual compensation that may be taken into account under a qualified retirement plan.

(b)

Supplemental Benefits shall include amounts attributable to changes made to the retirement benefit formula of the Owens-Illinois Salary Retirement Plan (the predecessor plan to the 1997 Prior Pension Plan), effective January 1, 1989, and conformed to in such Plan, whereby such Plan’s retirement benefit formulas were modified and the accrued benefit and/or rate of future benefit accruals of certain Eligible Employees were thereby curtailed. Such amounts shall be frozen as of June 30, 1998.

This Section 3.02 shall apply only to Employees or former Employees of the Company who are within the select group of employees described in Section 201(2) of the Employee Retirement Income Security Act, as amended (“ERISA”).

4.01

Each Eligible Employee shall be entitled to a normal, postponed, early, or vested deferred retirement benefit under this Plan in an amount equal to the excess of (i) the amount of the comparable benefit to which he or she would be entitled under the Pension Plan at the time of his or her commencement of benefits under the Plan, if the limitations and curtailments referred to in Sections 3.01 and 3.02 hereof were not applicable to the Pension Plan, over (ii) the amount of any such comparable benefit payable under the Pension Plan at the time of his or her commencement of benefits under the Plan, taking into account the limitations and curtailments referred to in Sections 3.01 and 3.02 hereof.

4.02

Upon the death of an Eligible Employee prior to commencement of benefits under Section 4.01, a survivor or death benefit shall be payable to the spouse or other beneficiary of such Eligible Employee in an amount equal to the excess of (i) the amount of the comparable benefit that would have been payable under the Pension Plan as a result of his