Document:

Exhibit 10-1

    Exhibit
      10.1

     

     

    

      

      Salary
        Increases, Bonus Payments, and Stock Option Grants

      Approved
        by the Compensation Committee on November 16, 2005

      for
        Executive Officers

      

      Salary
        Adjustments

       

      
        	 Name	   Title	 Proposed Salary	 Amount of Raise 
	 Donald (Eric) Parsons 	 President-IPNA	 $180,000*	 $30,000
                (20%)*
	 Jon C. Biro	 CFO & Treasurer	 $235,000	 $5,000
                (2.2%)  

      

                  

      *
        The
        above salary adjustments are to be effective retroactively. Mr. Parsons’ raise
        from $150,000 to $168,000 is to be effective October 1, 2005, with an additional
        raise to $180,000 to be effective November 20, 2005. All other raises are
        to be
        effective November 1, 2005.

      

      FY
        2005 Bonus Payments

      

      All
        of
        the bonuses referenced below are to be paid on or before December 15,
        2005.

      

      
        	 Name	 Title	 Bonus Amount
	 Steve Barkmann	 President-Bayshore Industrial	 $80,000 (1)
                (2) (5)
	 Dario Masutti	 President-ICO Courtenay
                Australasia	  
                --
                (1)
                (5)
	 Derek Bristow	 President-ICO Europe	 $44,927
                (1)
                (3) (5)
	 Donald (Eric) Parsons	 President-IPNA	 $27,000
                
	 Jon C. Biro	 CFO & Treasurer	 $18,845
                (4)
                (5)

      

       

      (1)
        The
        bonuses of Messrs. Barkmann, Masutti, and Bristow were calculated applying
        the
        formulas set forth in the Fiscal Year 2005 Executive Leadership Team Incentive
        Compensation Plan (“FY 2005 ELT ICP”). Messrs. Barkmann and Bristow will not be
        entitled to a bonus if, upon audit by PricewaterhouseCoopers (“PwC”), their
        business units are found to have a material weakness or significant deficiency
        that leads to PwC to provide a qualified opinion in connection with the
        Company’s Fiscal Year (“FY”) 2005 audit.

      

      (2)
        Applying
        the formula set forth in the FY 2005 ELT ICP, Mr. Barkmann is entitled to
        receive a bonus of $135,360. Mr. Barkmann is receiving stock options in place
        of
        $55,360 of the cash bonus amount - see below.

      

      (3)
        Mr.
        Bristow’s bonus amount shall be paid in New Zealand Dollars at the rate of
        exchange on the date of payment.

      

      (4)
        Mr.
        Biro’s bonus is calculated pursuant to the formula for calculating the Year Two
        Annual Incentive Bonus set forth in his employment agreement. Mr. Biro will
        not
        be entitled to this bonus if, upon audit by PwC, the Company is found to
        have a
        material weakness or significant deficiency that leads to PwC to provide
        a
        qualified opinion in connection with the Company’s FY 2005 audit.

      

      (5)
        Management
        is in the process of auditing and finalizing the financial results used to
        calculate the bonuses, and that bonuses calculated pursuant to the FY 2005
        ELT
        ICP are subject to minor revision (+/- up to 10%) in the event that management
        determines that that bonus calculations should be adjusted based on the final
        FY
        2005 financial results.

      
 

      
        
          
          

        

        
          
             

          

          
            

          

        

        
          
          

        

      

       

       

      
        11/22/05

        Page
          2

         

      

      Stock
        Option Grants

      

      All
        grants are Non-Qualified Stock Options, granted from the Company’s 1998 employee
        stock option plan. Date of grant shall be November 18, 2005. All options
        have a
        term of ten years from the date of grant, and shall expire, if not exercised,
        on
        the earlier of ten years from the date of grant or three months after the
        employee’s employment with the Company terminates.

       

      
        	 Name	  Title 	 Option Grant 	 Vesting Schedule
	 Steve Barkmann	 President-Bayshore
                Industrial 	 42,260	 December 15, 2005 (1)
	 Jon C. Biro	 CFO & Treasurer	 42,000	 40/30/30 (2)

      

              

       (1)
        Mr.
        Barkmann’s award of 42,260 options (using a Black-Sholes valuation of
        $1.31/option) is in place of $55,360 cash bonus to which he would otherwise
        be
        entitled per the FY 2005 ELT ICP. The option grant will vest on December
        15,
        2005, provided that Bayshore Industrial, L.P. is not found to have a material
        weakness or significant deficiency that leads to PwC to provide a qualified
        opinion in connection with the Company’s FY 2005 audit, in which case the option
        grant will terminate and will not be exercisable. 

      

      (2)
        40%
        of
        the options granted vest immediately; 30% vest on first anniversary of date
        of
        grant; 30% vest on second anniversary of date of grant.Exhibit 10-2

    Exhibit
      10.2

    
 

    FIRST
      AMENDMENT TO THE THIRD AMENDED AND RESTATED

    1993
      STOCK OPTION PLAN FOR 

    NON-EMPLOYEE
      DIRECTORS OF ICO, INC.

    

     

    WHEREAS,
      ICO,
      Inc.
      (“ICO”) has heretofore adopted and maintains the Third Amended and Restated 1993
      Stock Option Plan for Non-Employee Directors of ICO, Inc. (the “Plan”) for the
      benefit of the non-employee directors of ICO.

     

    WHEREAS,
      ICO
      desires to amend the Plan;

     

    NOW,
      THEREFORE,
      ICO does
      hereby amend the Plan as follows, effective as of November 18, 2005, provided
      that within 12 months thereafter, this Amendment to the Plan is approved by
      the
      holders of a majority of the shares of ICO’s stock represented at a meeting of
      the shareholders at which a quorum is present:

     

    1. Section
      2(c) of the Plan shall be deleted and the following shall be substituted
      therefor:

     

    “(c) “Date
      of
      Grant” shall mean the date on which an Option is granted to an Eligible Person
      pursuant to Section 4(a) or 4(b) hereof.”

     

    2. Section
      4
      of the Plan shall be deleted and the following shall be substituted
      therefor:

     

    4. Grant
      of Options.

     

    
      	 	
              (a)

            	
              Automatic
                Grants.

            

    

     

    
      	 	
              (i)

            	
              Unless
                otherwise provided by the Committee, Options shall automatically
                be
                granted to Eligible Persons as provided in this
                Section 4(a).

            

    

     

    
      	 	
              (ii)

            	
              The
                Options automatically granted to Directors under this Section 4(a)
                shall
                be in addition to regular Director’s fees or other benefits with respect
                to the Director’s position with the Company or its subsidiaries.
                

            

    

     

    
      	 	
              (iii)

            	
              Options
                granted under this Section 4(a) shall be automatically granted as
                follows:
                

            

    

     

    
      	 	
              (A)

            	
              each
                Director who is an Eligible Person on the first business day after
                the
                date of the 1999 Annual Meeting of Shareholders of the Company, on
                that
                date shall automatically receive an Option for FIVE THOUSAND (5,000)
                Shares, such date being the Date of Grant of such Option;
                

            

    

     

    
      	 	
              (B)

            	
              each
                Director who is an Eligible Person on the first business day after
                the
                date of each subsequent Annual Meeting of Shareholders of the Company,
                commencing with the Annual Meeting of Shareholders held in 2000,
                on that
                date shall automatically receive an Option for FIVE THOUSAND (5,000)
                Shares, such date being the Date of Grant of such Option; and
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (C)

            	
              each
                Eligible Person who is elected a Director by the Company’s Shareholders or
                the Board of Directors (not previously being a Director) on a date
                other
                than the date of the Annual Meeting of Shareholders of the Company
                shall
                be granted an Option for FIVE THOUSAND (5,000) Shares on the date
                of such
                Eligible Person’s election as a Director, such date being the Date of
                Grant for such Option. 

            

    

     

    
      	 	
              (iv)

            	
              Any
                Option that may be granted pursuant to this Section 4(a) shall vest
                and
                may be exercised six months and one day after the Date of
                Grant.”

            

    

     

    
      	 	
              (b)

            	
              Discretionary
                Grants. The Committee, in its discretion, may from time to time grant
                Options to one or more Eligible Persons on such terms and conditions
                as
                determined by the Committee on or after the Date of Grant, including
                but
                not limited to provisions regarding vesting and exercise. Options
                may be
                granted to the same Eligible Person on more than one occasion. Options
                granted under this Section 4(b) may be granted to an Eligible Person
                even
                if the Eligible Person receives an automatic grant of Options under
                Section 4(a). 

            

    

     

    
      	 	
              (c)

            	
              Option
                Agreement. Each Option shall be evidenced by an option agreement
                (an
                “Option Agreement”) and shall contain such terms that are not inconsistent
                with the Plan or any applicable law. Any person who files with the
                Board,
                in a form satisfactory to the Board, a written waiver of eligibility
                to
                receive any Option under this Plan shall not be eligible to receive
                any
                Option under the Plan for the duration of such waiver.
                

            

    

     

    
      	 	
              (d)

            	
              Director
                Rights. Neither the Plan nor any Option granted under the Plan shall
                confer upon any person any right to continue to serve as a Director.”
                

            

    

     

    3. Section
      5
      of the Plan shall be deleted and the following shall be substituted
      therefor:

     

    5.  Option
      Price.

     

    The
      option price per Share of any automatic grant of Options under Section 4(a)
      shall be one hundred percent (100%) of the Fair Market Value per Share on the
      Date of Grant. The option price per Share of any discretionary grant of Options
      under Section 4(b) shall be not less than one hundred percent (100%) of the
      Fair
      Market Value per Share on the Date of Grant.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

     

    4. Section
      7
      of the Plan shall be deleted and the following shall be substituted
      therefore:

     

    7.  Termination
      of Option Period.

     

    (a) Termination
      of Options granted under Section 4(a).
      The
      unexercised portion of any automatic grant of Options under Section 4(a) shall
      automatically and without notice terminate and become null and void at the
      time
      of the earliest to occur of the following: 

     

    (i) thirty
      (30) days after the date that an Optionee ceases to be a Director regardless
      of
      the reason therefor other than as a result of such termination by death of
      the
      Optionee; 

     

    (ii)
       one
      year
      after the date that an Optionee ceases to be a Director by reason of death
      of
      the Optionee, or six months after the Optionee shall die if that shall occur
      during the thirty-day period described in Subsection 7(i); or 

     

    (iii) the
      tenth
      (10th) anniversary of the Date of Grant of the Option.

     

    (b) Termination
      of Options granted under Section 4(b).
      The
      unexercised portion of any discretionary grant of Options under Section 4(b)
      shall automatically and without notice terminate and become null and void at
      the
      time of the earliest to occur of the following: 

     

    (i) the
      termination date specified in the Option Agreement; however, if no termination
      date is specified in the Option Agreement, the earlier of (A) thirty (30) days
      after the date that an Optionee ceases to be a Director regardless of the reason
      therefor other than as a result of such termination by death of the Optionee,
      or
      (B) one year after the date that an Optionee ceases to be a Director by reason
      of death of the Optionee; or 

     

    (ii)
      the
      tenth
      (10th) anniversary of the Date of Grant of the Option.

     

    5. As
      amended hereby, the Plan is specifically ratified and reaffirmed.

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