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Exhibit 10.2
ICO, Inc.
 FY 2009 Annual Incentive Bonus Plan Matrix- Business Unit Presidents
These four pages constitute the FY 2009 Annual Incentive Bonus Plans for the
following four individuals: (1) Donald Eric Parsons, President – ICO Polymers
North America (“IPNA”); (2) Stephen E. Barkmann, President – Bayshore Industrial
(“Bayshore”); (3) Derek R. Bristow – President, ICO Europe (“Europe”); and (4)
____________, President – ICO Asia Pacific (“Asia Pacific”).
     
Pay-out as a percentage of base salary
Measurement
Weighting
0%
50%
100%
Operating Income
15%
See Operating Income Targets attached
See Operating Income Targets attached
See Operating Income Targets attached
Business Unit ROIC
15%
See ROIC Targets attached
See ROIC Targets attached
See ROIC Targets attached
Business Unit Investment turnover
10%
*
*
*
Cash Flow from Operations
20%
See Cash Flow Targets attached
See Cash Flow Targets attached
See Cash Flow Targets attached
ICO, Inc. Consolidated ROE
20%
*
*
*
Subjective/Qualitative Factors
20%
As recommended by CEO, and determined & approved by the Compensation Committee
As recommended by CEO, and determined & approved by the Compensation Committee
As recommended by CEO, and determined & approved by the Compensation Committee

Measurement definitions
 
Operating Income - Earnings before interest and taxes.  [*]
 
ROIC - Annual Operating Income dividend by Invested Capital Base.  Invested
Capital Base defined as average total assets minus all intercompany loans
(including intercompany accounts receivables and payables) investment in
affiliates, and goodwill, minus  current liabilities, excluding funded debt
(i.e. interest bearing debt).  The average Invested Capital base shall be
calculated using the previous thirteen points of month-end data.
 
Investment turnover – Trailing twelve months revenue dividend by the average
Invested Capital Base for the previous thirteen month-end periods.  Note that
Investment turnover calculation will include intercompany revenues, receivables
and payables.
 
Cash Flow from Operations – Cash flow from operating activities less capital
expenditures excluding: intercompany interest income/expense tax effected and
changes in intercompany payables/receivables.  Cash Flow From Operations will be
computed by taking a weighted average of each quarter’s cash flow and then
calculating the annual cash flow amount as follows:  Cash flow from operations
will be equal to the sum of the first quarter cash flow times four, the second
quarter cash flow by three, the third quarter cash flow by two and the fourth
quarter cash flow by one.  That sum will then be divided by 2.5.
 
ROE – Net income from continuing operations divided by Stockholders’
equity.  For purposes of this calculation, Stockholders’ equity 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,
plus the year-end balance (i.e. the previous year end balance plus the four
quarter-end balances of fiscal year 2009).
 
 
Computational Note
 
For each measurement the bonus amount payable is calculated as the result
achieved for each measurement (i.e. the 0%, 50% or 100% pay-out) times the
weighting and multiplied by the relevant Business Unit President’s base salary.
Results for each measurement falling between the targeted amounts adjust the
pay-out targets by interpolating the percentage of: (i) the resulted 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 Provisions
 
A Business Unit President will not be entitled to a bonus under this Plan, or
otherwise with respect to FY 2009, if, prior October 1, 2009, (a) he resigns
from employment with the Company, or (b) he is terminated from employment for
“Cause.” Termination for “Cause” shall mean termination for “Cause” as defined
in the employment agreement (if any) between the Company or its subsidiary and
the Business Unit President, and also shall mean termination of the Business
Unit President as a result of the Business Unit President’s violation of any
provision of the Company’s Code of Business Ethics.
 
 
Indicates redacted
 

 
 

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ICO, Inc.
FY 2009 Annual Incentive Bonus Plan Matrix- Business Unit Presidents
FY 2009 Operating Income Targets
 

 
Pay-out as a percentage of base salary
 
Business Unit
0%
50%
100%
 
 
  IPNA
*
*
*
 
 
  Bayshore
*
*
*
 
 
  Europe
*
*
*
 
 
  Asia Pacific
*
*
*

* Indicates redacted text

 
 

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ICO, Inc.
FY 2009 Annual Incentive Bonus Plan Matrix- Business Unit Presidents
FY 2009 Cash Flow From Operations
 
 

 
Pay-out as a percentage of base salary
 
Business Unit
0%
50%
100%
 
 
  IPNA
*
*
*
 
 
  Bayshore
*
*
*
 
 
  Europe
*
*
*
 
 
  Asia Pacific
*
*
*
 
 
  Total of above
*
*
*

* Indicates redacted text
 

 
 
 

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ICO, Inc.
FY 2009 Annual Incentive Bonus Plan Matrix- Business Unit Presidents
FY 2009 ROIC Targets
 

 
Pay-out as a percentage of base salary
 
Business Unit
0%
50%
100%
 
 
  IPNA
*
*
*
 
 
  Bayshore
*
*
*
 
 
  Europe
*
*
*
 
 
  Asia Pacific
*
*
*

*Indicates redacted text