<PAGE>   1
                                                                  EXHIBIT 10.7.2

                               REXENE CORPORATION

                         EXECUTIVE MANAGEMENT COMMITTEE
                             ANNUAL INCENTIVE PLAN


I.       Purpose.

         The Rexene Executive Management Committee Annual Incentive Plan
         ("EAIP") is designed to reward Executive Management Committee ("EMC")
         members for their achievement of specific individual performance
         objectives that are established annually.

II.      Award Structure.

         The maximum award opportunity under the EAIP for any calendar year
         expressed as a percent of year-end base salary is as follows:

                                  POSITION

<TABLE>

         ----------------------------------------------------------
         <S>                                                    <C>
         Chief Executive Officer                                60%
         ----------------------------------------------------------
         Other Executive Management Committee Members
         ----------------------------------------------------------
            a)    Line                                          50%
         ----------------------------------------------------------
            b)    Staff                                         35%
         ----------------------------------------------------------

</TABLE>

III.     Administration.

         o       The Management Development and Compensation Committee
                 ("Committee") of the Board of Directors ("Board") will be
                 responsible for administering the EAIP.  The Board shall have
                 the final authority to determine the level of performance and
                 the amount of all awards made to members of the EMC.

         o       The Chief Executive Officer shall provide to the Board his
                 evaluation of the performance of the other members of the EMC,
                 as well as his recommendation as the size of the award to be
                 made to each of them.

         o       The Board shall have the discretion not to make any awards in
                 years in which the Corporation is not profitable.





<PAGE>   2
         o       The Board may amend or terminate the EAIP at any time on a
                 prospective basis.  If the EAIP is terminated or substantially
                 amended during any year, awards for such year shall be made on
                 a pro rata basis to the date of termination or amendment.

IV.      General Provisions.

         o       EMC members whose employment with the Corporation is
                 terminated prior to the end of a calendar year for any reason,
                 except for Cause, or who are Constructively Terminated, shall
                 be eligible to receive a pro rata award based on his/her
                 performance to date of termination.

         o       Except for Constructive Termination, Executive Officers who
                 voluntarily resign their employment prior to the end of the
                 fiscal year shall not be entitled to any bonus payment.

         o       Payment of awards will be made in cash before the end of
                 February of each year.

V.       Definitions.

         o       "Constructive Termination" of employment occurs if a member of
                 the EMC voluntarily resigns his/her employment within three
                 (3) years after a Change of Control because, as a condition to
                 continued employment with the Corporation or any successor to
                 either the Corporation or any or part of its business or
                 assets (a "Successor"), he/she is required to (i) relocate
                 outside the greater Dallas area, (ii) accept a reduction in
                 base salary, or (iii) accept a position of lesser
                 responsibility or authority than he/she had prior to the
                 change in control.

         o       "Cause" shall mean any of the following:

                 (a)      conduct involving moral turpitude or fraud,
                          regardless of the context, which conduct shall be
                          conclusively presumed if a member of the EMC is
                          convicted of or enters a plea of nolo contendere or
                          similar plea as to a crime involving moral turpitude
                          or fraud,

                 (b)      repeated intoxication by alcohol or drugs during the
                          performance of his/her duties,





                                     - 2 -

<PAGE>   3
                 (c)      malfeasance in the conduct of his/her duties,
                          including misuse or diversion of the Corporation's
                          funds, embezzlement or willful and material
                          misrepresentations or concealments on any reports
                          submitted to the Corporation.

                 (d)      repeated material failure by him/her to perform
                          his/her duties as an executive officer, or

                 (e)      material failure to follow or comply with the
                          reasonable and lawful directives of Continuing
                          Directors (as defined below) or the written policies
                          of the Corporation.

         o       "Change of Control" of the Corporation shall mean any one of
                 the following:

                 (a)      Continuing Directors no longer constitute at least
                          two-thirds of the Directors constituting the Board;

                 (b)      any person or group of persons (as defined in Rule
                          13d-5 under the Securities Exchange Act of 1934),
                          together with its affiliates, becomes the beneficial
                          owner, directly or indirectly, of 20% or more of the
                          Corporation's then outstanding common stock or 20% or
                          more of the voting power of the Corporation's then
                          outstanding securities entitled generally to vote for
                          the election of Directors and thereafter, directly or
                          indirectly, takes steps to influence the management
                          of the Corporation;

                 (c)      the occurrence of or the approval by the
                          Corporation's stockholders of the merger or
                          consolidation of the Corporation with any other
                          corporation, the sale of any substantial portion of
                          the assets of the Corporation or the liquidation or
                          dissolution of the Corporation unless, in the case of
                          a merger or consolidation, the Continuing Directors
                          in office immediately prior to such merger or
                          consolidation will constitute at least two-thirds of
                          the directors constituting the board of directors of
                          the surviving corporation of such merger or
                          consolidation and any parent (as such term is defined
                          in Rule 12b-2 under the Securities Exchange Act of
                          1934) of such corporation; or

                 (d)      at least a majority of the Continuing Directors in
                          office immediately prior to any other action taken or
                          proposed to be taken by the Corporation's
                          stockholders or by the Board determines that such
                          action constitutes, or that such proposed action, if
                          taken, would constitute, a Change of Control of the
                          Corporation and such action is taken.





                                     - 3 -

<PAGE>   4
         o       "Board" means the board of directors of Rexene; "Director"
                 means a member of the Board; and "Continuing Director" means
                 any person who is either (i) a Director on the date hereof, or
                 (ii) was designated as Continuing Director by a majority of
                 the Continuing Directors.

         o       "Termination without Cause" means any involuntary separation
                 for any reason, except for a "Cause" as defined above.

         o       "Executive Management Committee" or "EMC" shall mean the CEO
                 and such other executive officers of the Company as may be
                 designated by the Committee.  The Committee shall further
                 designate those EMC members who are "Line" and those who are
                 "Staff."

         IN WITNESS WHEREOF, the Corporation has caused this Executive
Management Committee Annual Incentive Plan to be executed effective as of
January 1, 1996.

                                         REXENE CORPORATION



                                         By: /s/ JAMES M. RUBERTO
                                            -----------------------------
                                               Title:





                                     - 4 -

<PAGE>   5
                      NON-FINANCIAL PERFORMANCE OBJECTIVES

                               INSTRUCTION SHEET

INTRODUCTION:    Non-financial objectives (NFO) should encompass those
individual performance expectancies that are not considered "routine" to the
normal functions of a position.  These objectives should be challenging,
attainable, objectively measurable and, above all, impact the overall success
of the company.  It is suggested that five (5) NFO's be established for a year.

1.       Description of Objectives:    Describe the objective to be
         accomplished within the following conceptual framework:

         o       to achieve what result (definition)
         o       by when (timetable)
         o       as evidenced by (measurement)

2.       Priority Weight: Assign a priority weight (%) to the objective, based
         on its importance relative to the other objectives (minimum 10%;
         maximum 30%).  If all objectives are of equal importance, weight them
         equally.  In all cases, the sum of weights must equal 100%.

3.       Completion Percent: Evaluate progress toward attainment of a listed
         performance objective by assigning a percentage of completion at the
         end of each fiscal quarter (interim 1, 2, 3) and total at year end
         (final).  During interim progress, special notation should be made of
         unexpected impediments to satisfying any objectives.  The final
         evaluation percent assigned should be in line with the following
         definitions of performance:

            SUPERIOR effort with goal surpassed;
            extraordinary performance.                                  100%

            SATISFACTORY performance; goal attained.                     80%

            ACCEPTABLE effort with goal not met;
            noticeable progress made toward completion.                  50%

            NO SATISFACTORY PROGRESS made toward
            completion of goal.                                           0%

4.       Weighted Completion: At year end, assign a total weighted completion
percent for each objective by multiplying the priority weight (A) by the final
completion percent (B).  Add the weighted completion percents for each
objective to arrive at a total non-financial performance objective score.





            
<PAGE>   6


                    NON-FINANCIAL PERFORMANCE OBJECTIVES

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
                                                          COMPLETION PERCENT                      
                                                          ------------------                       
NAME:                              PRIORITY                 INTERIM        FINAL          WEIGHTED 
                                  WEIGHT (%)           -------------------------        COMPLETION%
DESCRIPTION OF OBJECTIVE             (A)                  1    2    3       (B)           (A X B)
===================================================================================================
<S>                               <C>                  <C>    <C>  <C>       <C>        <C>
---------------------------------------------------------------------------------------------------
                                                                
---------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------
                                    100%                                               -----------
                                                                                          TOTAL


</TABLE>