Under the Executive Severance Policy, if Libbey were to
terminate Mr. Burmeisters employment without cause before he
attains at least 20 years of service, Mr. Burmeister would be
entitled to cash severance equal to the sum of (a) 52 weeks
salary continuation and (b) a target payout under Libbeys SMIP
for the year in which the date of termination occurs.

Additionally, Mr. Burmeister would be entitled to annual and
long-term incentive compensation, to the extent actually
earned, for any performance period that ended prior to the
termination date. Payment of any incentive compensation would
be made between January 1 and March 15 of the year following
the end of the relevant performance period. Mr. Burmeister also
would be entitled to continued medical, prescription drug and
dental benefits during that 52-week period, provided that he
pays the active-employee contributions for those benefits.
Under the Executive Severance Policy, Libbey would be entitled
to terminate Mr. Burmeister for cause if: (i) he willfully and
continuously fails (other than as a result of his incapacity
due to physical or mental illness) to substantially perform his
duties with Libbey after the Board has delivered to him a
written demand for substantial performance that specifically
identifies the manner in which the Board believes that he has
not substantially performed his duties; (ii) he willfully and
continuously fails (other than as a result of his incapacity
due to physical or mental illness) to substantially follow and
comply with the specific and lawful directives of the Board,
after the Board has delivered to him a written demand for
substantial performance that specifically identifies the manner
in which the Board believes that he has not substantially
followed or complied with the directives of the Board; (iii) he
commits an act of fraud or dishonesty that causes harm to
Libbey; (iv) he fails to comply with a material policy or code
of conduct of Libbey; (v) he materially breaches any material
obligation under any written agreement with Libbey; (vi) he
engages in illegal conduct or gross misconduct that causes harm
to Libbey; or (vii) he has been convicted of a misdemeanor or
felony that (A) is directly related to the position that he
occupies with Libbey or (B) indicates that he is unsuitable for
the position that he occupies with Libbey.

Mr. Burmeister will be entitled to receive the benefits
provided under Libbeys Executive Severance Policy only if he
executes a release from liability that also includes covenants
not to disparage Libbey or solicit its employees and covenants
not to compete with Libbey for a period of 12 months after
termination of employment.

Until Mr. Burmeister has been employed by Libbey for at least
18 months, he will be eligible to receive the following
modified severance benefits:

	Accrued base salary, vacation pay and expense reimbursement;

	Any amount or benefits to which Mr. Burmeister is entitled under any pension plan, retirement savings plan, equity participation plan, stock purchase plan, medical benefit plan or other benefit plan or employment policy maintained by Libbey in accordance with the terms of the plan, policy or arrangement;

	Any incentive compensation earned but not yet paid for a performance period ended prior to the date of termination at the time it would otherwise have been paid but for the termination;

	A lump sum payment equal to two times annual base salary plus target annual incentive;

	Continuation of medical and life insurance benefits for 18 months after termination or until he receives medical and/or life insurance coverage through a future employer, if earlier than 18 months;

	Executive level outplacement services paid by Libbey in an amount not to exceed 15% of Mr. Burmeisters annual base salary; and

	Financial planning services paid by Libbey in an amount not to exceed $10,000.

A person (other than Libbey, any trustee or other fiduciary holding securities under one of our employee benefit plans, or any corporation owned, directly or indirectly, by our shareholders in substantially the same proportions as their ownership of our common stock) becomes the “beneficial owner,” directly or indirectly, of securities representing 30% or more of the combined voting power of our then-outstanding securities;

The consummation of a merger or consolidation to which we are merged or consolidated with any other corporation (or other entity), unless our voting securities outstanding immediately prior to the merger or consolidation continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 66 2/3% of the combined voting power of securities of the surviving entity outstanding immediately after the merger or consolidation;

	A plan of complete liquidation or an agreement for the sale or disposition of all or substantially all of our assets is consummated; or