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Exhibit 10.2

ICO, Inc. Fiscal Year 2007 Incentive Plan Matrix- Chief Financial Officer
 
 
 
Pay-out as a percentage of Base Salary *
Measurement
Weighting
0%
32%
64%
Corporate Expenses
       
[redacted/specific operation performance]
       
ICO, Inc. Consolidated ROE
       
Subjective/Qualitative Factors
       

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ICO, Inc.
FY 2007 Incentive Plan Matrix - CFO
Explanation of Measurement Definitions and additional Explanatory Notes

Measurement definitions

*    “Corporate Expenses”: Defined as Corporate general and administrative
expenses, excluding stock option expenses and excluding business unit expenses
paid for by Corporate and included in Corporate expenses. These expenses include
but are not limited to: banking fees formerly paid by ICO Polymers North America
and Bayshore, fees related to global tax planning, expenses for two employees
transferred from Europe, Executive Leadership Team conference fees, and
consulting and legal fees to establish restricted stock/deferred compensation
plans.

*    “ROE”: Net income from continuing operations, excluding effect of preferred
stock buy back, minus preferred dividends (whether paid or accrued towards
preferred stock liquidation preference), divided by Stockholders' equity, less
the liquidation preference of the preferred stock. For purposes of this
calculation, Stockholders' equity and liquidation preference balances shall be
averaged using the previous four (4) quarter-end balances, plus the year-end
balance (i.e. the previous year end balance plus the four quarter-end balances
of fiscal year 2007).

Computational Note

*    For each measurement the bonus amount payable is calculated as the result
achieved for each measurement (i.e. the 0%, 32% or 64% pay-out) times the
weighting and multiplied by the CFO’s base salary. Results for each measurement
falling between the targeted amounts adjust the pay-out targets by interpolating
the percentage of: (i) the result achieved minus the lower threshold divided by,
(ii) the difference between the higher and lower target, multiplied by (iii) the
higher pay-out target percentage.

Additional Explanatory Notes

*    At the option of the CFO, subject to the approval of the Compensation
Committee, and subject to shareholder approval of amendments to the 1998
employee stock option plan to permit restricted stock grants, the CFO may be
awarded up to 25% of the incentive compensation award in the form of restricted
stock with a vesting schedule approved by the Compensation Committee.

*    Mr. Biro agrees that this Plan constitutes his “Annual Incentive Bonus”
calculation (as defined in and in accordance with his employment agreement with
the Company) for the Company’s fiscal year 2007, and that his employment
agreement is effectively amended to reflect this.