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                                                                    Exhibit 10.5
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                                THE GEON COMPANY
                            1999 INCENTIVE STOCK PLAN
                    (APPROVED BY STOCKHOLDERS APRIL 19, 1999)
                  (AMENDED AND RESTATED AS OF AUGUST 31, 2000)

         1. PURPOSE. The Geon Company 1999 Incentive Stock Plan (the "Plan") is
designed to foster and promote the long-term growth and performance of the
Company by enhancing the Company's ability to attract and retain qualified
Directors and key employees and motivating Directors and key employees through
stock ownership and performance-based incentives. To achieve this purpose, this
Plan provides authority for the grant of Stock Options, Restricted Stock, Stock
Equivalent Units, Stock Appreciation Rights, Performance-Based Stock Awards, and
other stock and performance-based incentives.

         2. DEFINITIONS.

                  (a) "Affiliate"-- This term has the meaning given to it in
Rule 12b-2 under the Exchange Act.

                  (b) "Award" -- The grant of Stock Options, Restricted Stock,
Stock Equivalent Units, Stock Appreciation Rights, Performance-Based Stock
Awards, and other stock and performance-based incentives under this Plan.

                  (c) "Award Agreement" -- Any agreement between the Company and
a Participant that sets forth terms, conditions, and restrictions applicable to
an Award.

                  (d) "Board of Directors "-- The Board of Directors of the
Company.

                  (e) "Change of Control"--A "Change of Control" means:

                           (i) the acquisition by any individual, entity or
                  group (within the meaning of Section 13(d)(3) or 14(d)(2) of
                  the Securities Exchange Act of 1934, as amended (the "Exchange
                  Act")) (a "Person") of beneficial ownership (within the
                  meaning of Rule 13d-3 promulgated under the Exchange Act) of
                  voting securities of the Company where such acquisition causes
                  such Person to own 20% or more of the combined voting power of
                  the then outstanding voting securities of the Company entitled
                  to vote generally in the election of directors (the
                  "Outstanding Company Voting Securities"); provided, however,
                  that for purposes of this subsection (i), the following
                  acquisitions shall not be deemed to result in a Change of
                  Control: (i) any acquisition directly from the Company, (ii)
                  any acquisition by the Company, (iii) any acquisition by any
                  employee benefit plan (or related trust) sponsored or
                  maintained by the Company or any corporation controlled by the
                  Company or (iv) any acquisition by any corporation pursuant to
                  a transaction that complies with clauses (i), (ii) and (iii)
                  of subsection (c) below; provided, further, that if any
                  Person's beneficial ownership of the Outstanding Company
                  Voting Securities reaches or exceeds 20% as a result of a
                  transaction described in clause (i) or (ii) above, and such
                  Person subsequently acquires

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                  beneficial ownership of additional voting securities of the
                  Company, such subsequent acquisition shall be treated as an
                  acquisition that causes such Person to own 20% or more of the
                  Outstanding Company Voting Securities; and provided, further,
                  that if at least a majority of the members of the Incumbent
                  Board determines in good faith that a Person has acquired
                  beneficial ownership (within the meaning of Rule 13d-3
                  promulgated under the Exchange Act) of 20% or more of the
                  Outstanding Company Voting Securities inadvertently, and such
                  Person divests as promptly as practicable a sufficient number
                  of shares so that such Person beneficially owns (within the
                  meaning of Rule 13d-3 promulgated under the Exchange Act) less
                  than 20% of the Outstanding Company Voting Securities, then no
                  Change of Control shall have occurred as a result of such
                  Person's acquisition; or

                           (ii) individuals who, as of November 6, 1996,
                  constitute the Board (the "Incumbent Board") cease for any
                  reason to constitute at least a majority of the Board;
                  provided, however, that any individual becoming a director
                  subsequent to November 6, 1996 whose election, or nomination
                  for election by the Company's shareholders, was approved by a
                  vote of at least a majority of the directors then comprising
                  the Incumbent Board shall be considered as though such
                  individual were a member of the Incumbent Board, but
                  excluding, for this purpose, any such individual whose initial
                  assumption of office occurs as a result of an actual or
                  threatened election contest with respect to the election or
                  removal of directors or other actual or threatened
                  solicitation of proxies or consents by or on behalf of a
                  Person other than the Board; or

                           (iii) the approval by the shareholders of the Company
                  of a reorganization, merger or consolidation or sale or other
                  disposition of all or substantially all of the assets of the
                  Company or the acquisition of assets of another corporation
                  ("Business Combination") or, if consummation of such Business
                  Combination is subject, at the time of such approval by
                  shareholders, to the consent of any government or governmental
                  agency, the obtaining of such consent (either explicitly or
                  implicitly by consummation); excluding, however, such a
                  Business Combination pursuant to which (i) all or
                  substantially all of the individuals and entities who were the
                  beneficial owners of the Outstanding Company Voting Securities
                  immediately prior to such Business Combination beneficially
                  own, directly or indirectly, more than 60% of, respectively,
                  the then outstanding shares of common stock and the combined
                  voting power of the then outstanding voting securities
                  entitled to vote generally in the election of directors, as
                  the case may be, of the corporation resulting from such
                  Business Combination (including, without limitation, a
                  corporation that as a result of such transaction owns the
                  Company or all or substantially all of the Company's assets
                  either directly or through one or more subsidiaries) in
                  substantially the same proportions as their ownership,
                  immediately prior to such Business Combination of the
                  Outstanding Company Voting Securities, (ii) no Person
                  (excluding any employee benefit plan (or related trust) of the
                  Company or such corporation resulting from such Business
                  Combination) beneficially owns, directly or indirectly, 20% or
                  more of, respectively, the then outstanding shares of common
                  stock of the

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                  corporation resulting from such Business Combination or the
                  combined voting power of the then outstanding voting
                  securities of such corporation except to the extent that such
                  ownership existed prior to the Business Combination and (iii)
                  at least a majority of the members of the board of directors
                  of the corporation resulting from such Business Combination
                  were members of the Incumbent Board at the time of the
                  execution of the initial agreement, or of the action of the
                  Board, providing for such Business Combination; or

                           (iv) approval by the shareholders of the Company of a
                  complete liquidation or dissolution of the Company.

                  (f) "Change of Control Price" -- The higher of (i) the highest
reported sales price, regular way, of a share of Common Stock in any transaction
reported on the New York Stock Exchange Composite Tape or other national
exchange on which such shares are listed or on NASDAQ during the 60-day period
prior to and including the date of a Change of Control or (ii) if the Change of
Control is the result of a tender or exchange offer or a Business Combination,
the highest price per share of Common Stock paid in such tender or exchange
offer or Business Combination; provided, however, that, in the case of Incentive
Stock Options and Stock Appreciation Rights relating to Incentive Stock Options,
the Change of Control Price shall be in all cases the Fair Market Value of the
Common Stock on the date such Incentive Stock Option or Stock Appreciation Right
is exercised. To the extent that the consideration paid in any such transaction
described above consists all or in part of securities or other noncash
consideration, the value of such securities or other noncash consideration shall
be determined in the sole discretion of the Board.

                  (g) "Code" -- The Internal Revenue Code of 1986, or any law
that supersedes or replaces it, as amended from time to time.

                  (h) "Committee" -- The Compensation Committee of the Board of
Directors, or any other committee of the Board of Directors that the Board of
Directors authorizes to administer this Plan. The Committee will be constituted
in a manner that satisfies all applicable legal requirements, including the
"Non-Employee Director" standard set forth in Rule 16b-3 and the outside
director requirement under Section 162(m).

                  (i) "Common Stock" or "stock" -- (i) for periods prior to the
Effective Time, Common Stock, $.10 par value, of the Company, and (ii) for
periods from and after the Effective Time, common shares, $.01 par value, of the
Company, including in both cases authorized and unissued shares, treasury
shares, and shares transferred from The Geon Share Ownership Trust or the M.A.
Hanna Company Associates Ownership Trust.

                  (j) "Company" -- (i) for periods prior to the Effective Time,
The Geon Company, a Delaware corporation, and (ii) for periods from and after
the Effective Time, PolyOne Corporation, an Ohio corporation.

                  (k) "Continuing Director" -- A Director following a Change of
Control who was a Director prior to such Change of Control or who was
recommended or elected to succeed a Continuing Director by a majority of the
Continuing Directors then in office.

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                  (l) "Director"-- A director of the Company.

                  (m) "Effective Time"-- The Effective Time as defined in the
Agreement and Plan of Consolidation, dated as of May 7, 2000, as amended, by
and among M.A. Hanna Company, The Geon Company and Consolidation Corp.

                  (n) "Exchange Act" -- The Securities Exchange Act of 1934, as
amended, or any law that supersedes or replaces it, as the same may be amended
from time to time.

                  (o) "Fair Market Value" of Common Stock -- The Fair Market
Value of a share of Common Stock on any particular date means the mean of the
high and low prices of the Common Stock on the relevant date or, if no sale was
made on such date, then on the next preceding day on which such a sale was made
(a) if the Common Stock is listed on the New York Stock Exchange, as reported on
the New York Stock Exchange Composite Transactions listing (or similar report),
or (b) if the Common Stock is listed on the NASDAQ National Market System, then
as reported on such system, or (c) if not listed on either the New York Stock
Exchange or the NASDAQ National Market System, as determined by the Board or
Committee.

                  (p) "Incentive Stock Option"-- A Stock Option that meets the
requirements of Section 422 of the Code.

                  (q) "Non-Employee Director"-- A Director who is not an
employee of the Company.

                  (r) "Notice of Award" -- Any notice by the Committee to a
Participant that advises the Participant of the grant of an Award or sets forth
terms, conditions, and restrictions applicable to an Award.

                  (s) "Participant"-- Any person to whom an Award has been
granted under this Plan.

                  (t) "Performance-Based Stock Award"-- A Stock Award granted to
a Participant pursuant to Section 7.

                  (u) "Restricted Stock"-- An Award of Common Stock subject to
restrictions or risk of forfeiture.

                  (v) "Rule 16b-3" -- Rule 16b-3 under the Exchange Act as the
same may be amended, modified, superseded or replaced from time to time.

                  (w) "Section 162(m) " -- Section 162(m) of the Code, together
with the regulations promulgated by the Internal Revenue Service thereunder, as
the same may be amended, modified, superseded or replaced from time to time.

                  (x) "Stock Appreciation Right"-- This term has the meaning
given to it in Section 6(b)(ii).

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                  (y) "Stock Award"-- This term has the meaning given to it in
Section 6(b)(iii).

                  (z) "Stock Equivalent Unit"-- An Award that is valued by
reference to the value of Common Stock.

                  (aa) "Stock Option"-- This term has the meaning given to it in
Section 6(b)(iv).

         3. ELIGIBILITY. All key employees of the Company and its Affiliates,
including officers whether or not Directors, and all Non-Employee Directors are
eligible for the grant of Awards, except that Non-Employee Directors shall not
be eligible for the grant of Performance-Based Stock Awards under Section 7. The
selection of Participants to receive Awards will be within the discretion of the
Committee. More than one Award may be granted to the same Participant.

         4. COMMON STOCK AVAILABLE FOR AWARDS; ADJUSTMENT.

                  (a) NUMBER OF SHARES OF COMMON STOCK. Subject to adjustment as
provided for in Section 4(d) and subject to this Section 4(a), the aggregate
number of shares of Common Stock that may be subject to Awards granted under
this Plan shall be 1,705,090 shares of Common Stock. The assumption of awards
granted by an organization acquired by the Company, or the grant of Awards under
this Plan in substitution for any such awards, will not reduce the number of
shares of Common Stock available for the grant of Awards under this Plan.

                  Common Stock subject to an Award that expires or is forfeited,
terminated, or canceled will again be available for grant under this Plan,
without reducing the number of shares of Common Stock available for grant of
Awards under this Plan, except to the extent that the availability of those
shares of Common Stock would cause this Plan or any Awards granted under this
Plan to fail to qualify for the exemption provided by Rule 16b-3. If a
Participant pays all or part of the exercise price of an Award by the transfer
of shares of Common Stock or the surrender (including by attestation) of all or
part of an Award (including the Award being exercised), such number of shares of
Common Stock so transferred, or the number of shares of Common Stock
attributable to the portion of the Award so surrendered, shall also be available
for grant under this Plan. The number of shares of Common Stock attributable to
any Award that is settled in cash without the actual issuance of any shares of
Common Stock shall, upon such settlement, also be available for grant under this
Plan.

                  (b) LIMITATIONS ON CERTAIN AWARDS. (i) The aggregate number of
shares of Common Stock that may be issued upon exercise of Incentive Stock
Options is 1,705,090.

                  (ii) The maximum number of shares with respect to which
Options (including Incentive Stock Options) and Stock Appreciation Rights may be
granted under this Plan in any period of three fiscal years to any individual
Participant is 500,000.

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                  (iii) The aggregate number of shares of Restricted Stock
(other than Restricted Stock which is a Performance-Based Stock Award) that may
be awarded under this Plan is 400,000.

                  (iv) The maximum number of shares with respect to which
Options, Stock Appreciation Rights and Restricted Stock may be granted under
this Plan in any one fiscal year to a Non-Employee Director is 20,000.

                  (v) No Participant who is an employee may be awarded
Performance-Based Stock Awards in any one fiscal year in excess of an aggregate
of 100,000 shares of Common Stock.

                  (c) NO FRACTIONAL SHARES. No fractional shares will be issued,
and the Committee will determine the manner in which the value of fractional
shares will be treated.

                  (d) ADJUSTMENT. In the event of any change in the number of
shares of Common Stock by reason of a merger, consolidation, reorganization,
recapitalization, or similar transaction, or in the event of a stock dividend,
stock split, or distribution to stockholders (other than normal cash dividends),
the Committee will adjust the number and class of shares that may be issued
under this Plan, the number and class of shares subject to outstanding Awards,
the exercise price applicable to outstanding Awards, and the Fair Market Value
of the shares of Common Stock and other value determinations applicable to
outstanding Awards.

         5. ADMINISTRATION.

                  (a) COMMITTEE. This Plan will be administered by the
Committee. The Committee will, subject to the terms of this Plan, have the
authority to: (i) select the eligible employees and Non-Employee Directors who
will receive Awards, (ii) grant Awards, (iii) determine the number and types of
Awards to be granted to employees and Non-Employee Directors, (iv) determine the
terms, conditions, vesting periods, and restrictions applicable to Awards, (v)
adopt, alter, and repeal administrative rules and practices governing this Plan,
(vi) interpret the terms and provisions of this Plan and any Awards granted
under this Plan, (vii) prescribe the forms of any Notices of Award, Award
Agreements, or other instruments relating to Awards, and (viii) otherwise
supervise the administration of this Plan. All decisions by the Committee will
be made with the approval of not less than a majority of its members. Except as
provided in the immediately following sentence, all decisions by the Committee
will be made with the approval of not less than a majority of its members. In
furtherance and not in limitation of the authority granted in clause (vi) of
this paragraph, any interpretation by a majority of the Incumbent Directors then
serving on the Committee as to whether a sale or other disposition of assets by
the Company or an acquisition of assets of another corporation constitutes a
"sale or other disposition of all or substantially all of the assets of the
Company or the acquisition of assets of another corporation" for purposes of
clause (iii) of the definition of "Change of Control" in Section 2(e) hereof
shall be final and binding for all purposes of this Plan and any Awards
hereunder, notwithstanding that the transaction in question was, or is
contemplated to be, submitted to stockholders of the Company for their approval
and notwithstanding such approval.

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                  (b) DELEGATION. The Committee may delegate any of its
authority to any other person or persons that it deems appropriate, provided the
delegation does not cause this Plan or any Awards granted under this Plan to
fail to qualify for the exemption provided by Rule 16b-3 under the Exchange Act.

                  (c) DECISIONS FINAL. All decisions by the Committee, and by
any other person or persons to whom the Committee has delegated authority, will
be final and binding on all persons.

         6. AWARDS.

                  (a) GRANT OF AWARDS. The Committee will determine the type or
types of Awards to be granted to each Participant and will set forth in the
related Notice of Award or Award Agreement the terms, conditions, vesting
periods, and restrictions applicable to each Award. Awards may be granted singly
or in combination or tandem with other Awards, except to the extent that any
grants in combination or tandem would impair the exemption for performance based
compensation provided for under Section 162(m). Awards may also be granted in
replacement of, or in substitution for, other awards granted by the Company,
whether or not granted under this Plan, except that, with respect to
Performance-Based Stock Awards, the new Award must also be wholly contingent on
the attainment of performance goals established by the Committee; without
limiting the foregoing, if a Participant pays all or part of the exercise price
or taxes associated with an Award by the transfer of Common Stock or the
surrender of all or part of an Award (including the Award being exercised), the
Committee may, in its discretion, grant a new Award (which, in the case of
Awards intended to replace Performance-Based Stock Awards, must also be wholly
contingent on the attainment of performance goals established by the Committee)
to replace the shares of Common Stock that were transferred or the Award that
was surrendered. The Company may assume awards granted by an organization
acquired by the Company or may grant Awards in replacement of, or in
substitution for, any such awards. Except as provided in Section 4(d), and
notwithstanding any other provision of this Plan to the contrary, any reduction
in the exercise price of a Stock Option or Stock Appreciation Right previously
granted under this Plan, whether through amendment, cancellation or replacement
Awards or any other means, shall be subject to, and shall become effective only
upon, approval of the reduction in exercise price by the stockholders of the
Company.

                  (b) TYPES OF AWARDS. Awards may include, but are not limited
to, the following:

                           (i) STOCK APPRECIATION RIGHT -- A right to receive a
                  payment, in cash or Common Shares, equal to the excess of (A)
                  the Fair Market Value of a specified number of shares of
                  Common Stock on the date the right is exercised over (B) the
                  Fair Market Value on the date the right is granted. The right
                  may be conditioned upon the occurrence of certain events, such
                  as a Change of Control of the Company, or may be
                  unconditional, as determined by the Committee.

                           (ii) STOCK AWARD -- An Award that is made in Common
                  Stock, Restricted Stock, or Stock Equivalent Units or that is
                  otherwise based on, or valued in whole or in part by reference
                  to, the Common Shares, including

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                  Performance-Based Stock Awards. All or any part of any Stock
                  Award may be subject to such conditions, restrictions, and
                  risks of forfeiture, as and to the extent established by the
                  Committee and, with respect to Performance-Based Stock Awards,
                  such conditions and restrictions as may be required under
                  Section 162(m), so that the Performance-Based Stock Awards
                  constitute performance-based compensation thereunder. Subject
                  to Section 11 and Section 12 below, all Stock Awards made in
                  Restricted Stock shall be subject to risk of forfeiture upon
                  termination of employment for any reason for a period of not
                  less than three years from the date of grant. Stock Awards may
                  be based on the Fair Market Value of the Common Stock, or on
                  other specified values or methods of valuation, as determined
                  by the Committee.

                           (iii) STOCK OPTION -- A right to purchase a specified
                  number of shares of Common Stock, during a specified period,
                  and at a specified exercise price, all as determined by the
                  Committee. A Stock Option may be an Incentive Stock Option or
                  a Stock Option that does not qualify as an Incentive Stock
                  Option (a "non-qualified Stock Option"). In addition to the
                  terms, conditions, vesting periods, and restrictions
                  established by the Committee, Incentive Stock Options must
                  comply with the requirements of Section 422 of the Code. The
                  exercise price of a Stock Option, including a non-qualified
                  Stock Option, may be no less than the Fair Market Value of the
                  Common Shares on the date the Stock Option is granted.

                           (v) PERFORMANCE-BASED STOCK AWARDS-- A Stock Award
                  granted to a Participant pursuant to Section 7.

         7. PERFORMANCE-BASED STOCK AWARDS. The Committee may, in its
discretion, grant Stock Awards valued by reference to shares of Common Stock
that are wholly contingent on the attainment of performance goals established by
the Committee from time to time. The performance goals will relate to one or
more of the following performance measures, as determined by the Committee for
each applicable performance period: (i) return to stockholders, (ii) cash flow,
(iii) return on equity, (iv) Company created income (for example, income due to
Company initiated cost reductions or productivity improvements), (v) sales
growth, (vi) earnings and earnings growth, (vii) return on assets, (viii) stock
price, (ix) earnings per share, (x) market share, (xi) customer satisfaction,
and (xii) safety and/or environmental performance. Any such performance goals
and the applicable performance measures will be determined by the Committee at
the time of grant and reflected in a written award agreement. The foregoing
performance goals and performance criteria shall have any reasonable definitions
that the Committee may specify, which may include or exclude any or all of the
following items, as the Committee may specify: extraordinary, unusual or
non-recurring items; effects of accounting changes; effects of currency
fluctuations; effects of financing activities (e.g., effect on earnings per
share of issuing convertible debt securities); expenses for restructuring or
productivity initiatives; non-operating items; acquisition expenses (e.g.,
pooling of interests); and effects of divestitures. Any such performance goals
or combination of such goals may apply to the Participant's Performance-Based
Stock Award in its entirety or to any designated portion or portions of the
Performance-Based Stock Award, as the Committee may specify. The number or value
of Performance-Based Stock Awards that will be paid out to any Participant at
the end of

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the applicable performance period will depend on the extent to which the Company
attains the established performance goals. No performance period shall be less
than one year long, but the performance period may, in the discretion of the
Committee, be longer than one year.

         8. DEFERRAL OF PAYMENT. With the approval of the Committee, the
delivery of the Common Stock, cash, or any combination thereof subject to an
Award may be deferred, either in the form of installments or a single future
delivery. The Committee may also permit selected Participants to defer the
payment of some or all of their Awards, as well as other compensation, in
accordance with procedures established by the Committee to assure that the
recognition of taxable income is deferred under the Code. Deferred amounts may,
to the extent permitted by the Committee, be credited as cash or Stock
Equivalent Units. The Committee may also establish rules and procedures for the
crediting of interest on deferred cash payments and dividend equivalents on
Stock Equivalent Units.

         9. PAYMENT OF EXERCISE PRICE. The exercise price of a Stock Option and
any Stock Award for which the Committee has established an exercise price may be
paid in cash, by the transfer of Common Stock, by the surrender of all or part
of an Award (including the Award being exercised), or by a combination of these
methods, as and to the extent permitted by the Committee. The Committee may
prescribe any other method of paying the exercise price that it determines to be
consistent with applicable law and the purpose of this Plan.

                  In the event shares of Restricted Stock are used to pay the
exercise price of a Stock Award, a number of the shares of Common Stock issued
upon the exercise of the Award equal to the number of shares of Restricted Stock
used to pay the exercise price will be subject to the same restrictions as the
Restricted Stock.

         10. TAXES ASSOCIATED WITH AWARD. Prior to the payment of an Award, the
Company may withhold, or require a Participant to remit to the Company, an
amount sufficient to pay any Federal, state, and local taxes associated with the
Award. The Committee may, in its discretion and subject to such rules as the
Committee may adopt, permit a Participant to pay any or all taxes associated
with the Award in cash, by the transfer of Common Stock, by the surrender of all
or part of an Award (including the Award being exercised), including
Performance-Based Stock Awards, or by a combination of these methods. The
Committee may permit a Participant to pay any or all taxes associated with an
Incentive Stock Option in cash, by the transfer of Common Stock, or by a
combination of these methods.

         11. TERMINATION OF EMPLOYMENT. Subject to Section 12, if the employment
of a Participant terminates for any reason, all unexercised, deferred, and
unpaid Awards may be exercisable or paid only in accordance with rules
established by the Committee. Subject to the foregoing exception, these rules
may provide, as the Committee deems appropriate, for the expiration,
continuation, or acceleration of the vesting of all or part of the Awards.

         12. CHANGE OF CONTROL. In the event of a Change of Control of the
Company, unless and to the extent otherwise determined by the Board of
Directors, (i) all Stock Appreciation Rights and Stock Options then outstanding
will become fully exercisable as of the date of the Change of Control and (ii)
all restrictions and conditions applicable to Restricted Stock and other Stock
Awards, including Performance-Based Stock Awards, will be deemed to have been

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satisfied as of the date of the Change of Control. Any such determination by the
Board of Directors that is made after the occurrence of a Change of Control will
not be effective unless a majority of the Directors then in office are
Continuing Directors and the determination is approved by a majority of the
Continuing Directors.

                  Notwithstanding any other provision of this Plan, during the
60-day period from and after a Change of Control (the "Exercise Period"), unless
the Committee shall determine otherwise at the time of grant, an optionee shall
have the right, whether or not the Stock Option is fully exercisable and in lieu
of the payment of the exercise price for the shares of Common Stock being
purchased under the Stock Option and by giving notice to the Company, to elect
(within the Exercise Period) to surrender all or part of the Stock Option to the
Company and to receive cash, within 30 days of such notice, in an amount equal
to the amount by which the Change of Control Price per share of Common Stock on
the date of such election shall exceed the exercise price per share of Common
Stock under the Stock Option (the "Spread") multiplied by the number of shares
of Common Stock granted under the Stock Option as to which the right granted
under this Section shall have been exercised.

         13.      AMENDMENT, SUSPENSION, OR TERMINATION OF THIS PLAN; AMENDMENT
                  OF OUTSTANDING AWARDS.

                  (a) AMENDMENT, SUSPENSION, OR TERMINATION OF THIS PLAN. The
Board of Directors may amend, suspend, or terminate this Plan at any time.
Stockholder approval for any such amendment will be required only (i) to the
extent necessary to preserve the exemption provided by Rule 16b-3 for this Plan
and Awards granted under this Plan or (ii) if the proposed amendment would
materially increase the benefits accruing to Participants under this Plan.

                  (b) AMENDMENT OF OUTSTANDING AWARDS. The Committee may, in its
discretion, amend the terms of any Award, including, waiving, in whole or in
part, any restrictions or conditions applicable to, or accelerating the vesting
of, any Award, prospectively or retroactively, but no such amendment may impair
the rights of any Participant without his or her consent or cause Awards
intended to qualify as performance based compensation under Section 162(m) to
fail to so qualify.

         14. AWARDS TO FOREIGN NATIONALS AND EMPLOYEES OUTSIDE THE UNITED
STATES. To the extent that the Committee deems appropriate to comply with
foreign law or practice and to further the purpose of this Plan, the Committee
may, without amending this Plan, (i) establish special rules applicable to
Awards granted to Participants who are foreign nationals, are employed outside
the United States, or both, including rules that differ from those set forth in
this Plan, and (ii) grant Awards to such Participants in accordance with those
rules.

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         15. NONASSIGNABILITY. Unless otherwise determined by the Committee, (i)
no Award granted under this Plan may be transferred or assigned by the
Participant to whom it is granted other than by will, pursuant to the laws of
descent and distribution, or pursuant to a qualified domestic relations order
and (ii) an Award granted under this Plan may be exercised, during the
Participant's lifetime, only by the Participant or by the Participant's guardian
or legal representative; except that, no Incentive Stock Option may be
transferred or assigned pursuant to a qualified domestic relations order or
exercised, during the Participant's lifetime, by the Participant's guardian or
legal representative.

         16. GOVERNING LAW. The interpretation, validity, and enforcement of
this Plan will, to the extent not governed by the Code or the securities laws of
the United States, be governed by the laws of the State of Ohio.

         17. RIGHTS OF EMPLOYEES. Nothing in this Plan will confer upon any
Participant the right to continued employment by the Company or limit in any way
the Company's right to terminate any Participant's employment at will.

         18. EFFECTIVE AND TERMINATION DATES.

                  (a) EFFECTIVE DATE. This Plan became effective on April 19,
1999, the date the stockholders approved the Plan.

                  (b) TERMINATION DATE. This Plan will continue in effect until
terminated by the Board of Directors.

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                                                                    Exhibit 10.9
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                 SENIOR EXECUTIVE POLYONE ANNUAL INCENTIVE PLAN

         1. PURPOSE. The Senior Executive PolyOne Annual Incentive Plan (the
"PolyOne AIP") has been established to provide opportunities to certain key
executive personnel to receive incentive compensation as a reward for high
levels of performance above the ordinary performance standards compensated by
base salary, and for their contributions to strong performance of the Company.
The PolyOne AIP is designed to provide a competitive level of performance-based
incentive compensation when all relevant performance objectives are achieved.

         2. ADMINISTRATION. The PolyOne AIP will be administered by the
Compensation Committee of the Board of Directors (the "Committee"). The
Committee is authorized to interpret the PolyOne AIP and to establish and
maintain guidelines necessary or desirable for the administration of the PolyOne
AIP. Decisions and determinations of the Committee shall be binding on all
persons claiming rights under the PolyOne AIP. The Committee may delegate to the
Chief Executive Officer or other officers, subject to such terms as the
Committee shall determine, authority to perform such functions, including
administrative functions, except that the Committee shall retain exclusive
authority to determine matters relating to awards to the Chief Executive Officer
and other key executive personnel that are intended to qualify as
performance-based compensation under Section 162(m) of the Internal Revenue Code
(the "Code").

         3. ELIGIBILITY.

         (a) Participation in the PolyOne AIP will be limited to those key
executive personnel selected by the Committee who have the potential to
influence significantly and positively the performance of the Company.

         (b) To be eligible for participation in any particular year during the
term of the PolyOne AIP (a "Plan Year"), a key executive must have assumed the
duties of an incentive-eligible position and have been selected for
participation in the PolyOne AIP within 90 days of the commencement of the
applicable Plan Year. The foregoing and other provisions of the PolyOne AIP
notwithstanding, the Committee may select any eligible employee who the
Committee determines is not a "covered employee" in a given Plan Year to receive
an award under the PolyOne AIP without complying with the timing and other
limitations set forth in Sections 3(b), 4(b), 5 and 8(a). The Committee may also
make awards to newly hired or newly promoted executives without compliance with
such timing and other limitations, which awards may be based on performance
during less than the full Plan Year. For purposes of the PolyOne AIP, a "covered
employee" means an officer who the Committee deems likely to have compensation
for the Plan Year which would be non-deductible by the Company under Code
Section 162(m) if the Company did not comply with the provisions of Code Section
162(m) and the regulations thereunder with respect to such compensation.

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         4. PARTICIPANT CATEGORIES; TARGET AWARD LEVELS.

         (a) For each Plan Year, each participant will be assigned to an
incentive category based on organizational level, business unit or function, and
potential impact on Company results. Each incentive category will be assigned a
corresponding target level of incentive opportunity ("Incentive Percentage")
stated as a percentage of base salary (up to a maximum of 200%) that will be
available to the participant upon achievement of the Performance Targets (as
hereinafter defined) for the respective Performance Measures (as hereinafter
defined) for the applicable Plan Year. In the case of a covered employee, unless
the Committee specifies a separate maximum award amount that may be earned, the
base salary upon which the Incentive Percentage is based will be that in effect
at the time the Committee establishes the Incentive Percentage.

         (b) Category assignments for each Plan Year will be approved by the
Compensation Committee within 90 days of the commencement of the applicable Plan
Year. In determining category assignments other than that of Chief Executive
Officer, the Committee will consider the recommendations of the Chief Executive
Officer of the Company.

         5. PERFORMANCE MEASURES AND TARGETS

         (a) Within 90 days of the commencement of each applicable Plan Year,
the Committee shall determine the performance goal targets ("Performance
Targets") applicable to the measures of Company and/or business unit performance
("Performance Measures") which must be achieved in order for awards to be paid
under the PolyOne AIP. If the Committee so determines, a Performance Target may
include a minimum threshold performance level, a maximum performance level, and
one or more intermediate performance levels or ranges, with target award levels
or ranges that will correspond to the respective performance levels or ranges
included in the Performance Target. The Performance Measures will include one or
more of the following, as determined by the Committee for each Plan Year: (i)
total return to shareholders, (ii) cash flow, (iii) return on equity, (iv)
Company created income (for example, income due to Company initiated cost
reductions or productivity improvements), (v) sales growth, (vi) earnings and
earnings growth, (vii) return on assets, (viii) share price, (ix) earnings per
share, (x) market share, (xi) customer satisfaction, (xii) safety and/or
environmental performance, (xiii) electronic commerce performance, and (xiv)
specific measures related to other forms of marketing or sales. The foregoing
terms shall have any reasonable definitions that the Committee may specify.

         (b) The Performance Measures selected by the Committee for each Plan
Year will be weighted by the Committee to reflect their relative importance to
the Company in the applicable Plan Year. The weightings of the Performance
Measures shall also be determined by the Committee within 90 days of the
commencement of each applicable Plan Year.

         6. CERTIFICATION OF ACHIEVEMENT. Promptly following the end of each
Plan Year the Committee will meet to certify achievement by the Company of the
Performance Targets for the applicable Plan Year and, if such goals have been
achieved, to review management recommendations and approve actual awards under
the PolyOne AIP. The Committee shall certify in writing, in a manner conforming
to applicable regulations under Section 162(m), prior to payout of each award
granted to a covered employee, that the Performance Targets relating to the
award and other material terms of the award upon which payout was conditioned
have been satisfied.

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         7. DETERMINATION OF AWARDS. The amount of incentive awards available
for payment to a participant under the PolyOne AIP will be the product of the
participant's salary and the Incentive Percentage, adjusted to reflect the
weightings assigned to the Performance Measures with respect to which the
Performance Targets were met and further adjusted, in the case of any
Performance Target for which the Committee determined more than one level or
range of performance, to reflect the level or range of performance achieved;
provided that the maximum annual dollar award (after giving effect to the 25%
premium for restricted share deferrals provided for in Section 8) paid to any
participant for any one Plan Year will be $2,000,000. No awards will be paid
under the PolyOne AIP if none of the Performance Targets is achieved.
Notwithstanding the amount of any available incentive award under PolyOne AIP,
the Committee may, in its discretion, reduce or eliminate the amount of any
incentive award actually paid to a participant based on individual performance
or otherwise. In no event may the Committee increase the amount of any available
incentive award to a covered employee provided for under the PolyOne AIP.

         8. PAYMENT OF AWARDS.

         (a) Awards will be paid as soon as practicable after approval by the
Committee. The Committee may determine, within 90 days of the commencement of
the applicable Plan Year, that a portion of the participant's award will be paid
in the form of restricted shares or share equivalent units (the "Basic
Deferral"). Participants will also have the opportunity to elect, within 120
days of the commencement of the applicable Plan Year, additional optional
deferrals so that they may receive up to 100% of their award, if any, as
restricted shares or share equivalent units.

         (b) Any award paid as restricted shares or share equivalent units will
be enhanced with a 25% "premium", i.e. for every $100 deferred, the participant
will receive $125 in restricted shares or share equivalent units. Restrictions
on the restricted shares or share equivalent units will be determined by the
Committee at the time awards are approved in accordance with the provisions of
the stock option plan of the Company under which the shares are awarded. The
number of restricted shares to be delivered or share equivalent units to be
credited to a participant in respect of his or her incentive award under the
PolyOne AIP shall be determined by dividing the dollar amount of the incentive
award (after giving effect to the 25% premium for restricted share deferrals)
under the PolyOne AIP by the fair market value of one common share of the
Company on the first business day of the year immediately succeeding the Plan
Year in respect of which the incentive award is made.

         (c) For purposes of the PolyOne AIP, fair market value of one share
shall be the mean of the high and low prices of the Company's common shares on
the relevant date (or, if no sale was made on such date, then on the next
preceding date on which such a sale was made) on the composite tape reporting
transactions in securities listed on The New York Stock Exchange. If the
Company's common shares are not listed on The New York Stock Exchange, the fair
market value of one share of stock shall be as determined by the Committee.

         (d) Any portion of a participant's award not paid as restricted shares
or share equivalent units will be paid in cash. Other provisions of this Section
8 notwithstanding, the Committee may determine to pay out portions of the award
that otherwise would be payable as restricted shares or share equivalent units
in cash (without payment of any "premium") in any circumstance deemed
appropriate by the Committee.

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         9. OTHER PROVISIONS.

         (a) No awards under the PolyOne AIP are to be considered earned until
received.

         (b) Awards to participants who serve in incentive-eligible positions
for less than a full year, or who within a year serve in two or more positions
that are of significantly different size, may be adjusted on a pro rata basis.

         (c) Neither the adoption of the PolyOne AIP nor its submission to the
shareholders for approval shall be construed as creating any limitations on the
power of the Board of Directors or Committee to adopt such other incentive
arrangements, apart from the PolyOne AIP, including incentive arrangements and
awards which do not qualify under Code Section 162(m), and such other
arrangements may be either applicable generally or only in specific cases.

         10. PAYMENT UPON CHANGE IN CONTROL.

         (a) Anything to the contrary notwithstanding, within five days
following the occurrence of a "Change in Control" (as defined in Attachment A
hereto), the Company shall pay to each participant an interim lump-sum cash
payment (the "Interim Payment") with respect to his or her participation in the
PolyOne AIP. The amount of the Interim Payment shall equal the product of the
number of months, including fractional months, that have elapsed until the
occurrence of the Change in Control in the calendar year in which the Change in
Control occurs and one-twelfth of the greater of (i) the amount most recently
paid to each participant for a full calendar year, or (ii) the level of
incentive opportunity for each participant in effect prior to the Change in
Control for the calendar year in which the Change in Control occurs assuming
that all Performance Targets were achieved at the maximum performance level, in
each case under the terms of the PolyOne AIP.

         (b) The Interim Payment shall not reduce the obligation of the Company
to make a final payment under the terms of the PolyOne AIP, but any Interim
Payment made shall be offset against any later payment required to be made under
the terms of the PolyOne AIP for the Plan Year in which a Change in Control
occurs. In no event shall any participant be required to refund to the Company,
or have offset against any other payment due any participant from or on behalf
of the Company, all or any portion of the Interim Payment.

         11.  AMENDMENT; TERM OF THE POLYONE AIP.

         (a) The PolyOne AIP may be amended by the Committee to the extent
required in order to comply with the provisions of Section 162(m) of the
Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder regarding "performance-based" compensation.

         (b) The PolyOne AIP will be effective on August 31, 2001, and will
remain in effect thereafter until terminated by the Committee.

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                                  ATTACHMENT A

                 SENIOR EXECUTIVE POLYONE ANNUAL INCENTIVE PLAN

DEFINITION OF "CHANGE IN CONTROL"

For purposes of the Senior Executive PolyOne Annual Incentive Plan, "Change in
Control" shall mean:

-        The acquisition by any individual, entity or group (within the meaning
         of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
         as amended (the "Exchange Act")) (a "Person") of beneficial ownership
         (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
         of voting securities of the Company where such acquisition causes such
         Person to own 20% or more of the combined voting power of the then
         outstanding voting securities of the Company entitled to vote generally
         in the election of directors (the "Outstanding Company Voting
         Securities"); provided, however, that for purposes of paragraph the
         following acquisitions shall not be deemed to result in a Change of
         Control: (A) any acquisition directly from the Company, (B) any
         acquisition by the Company, (C) any acquisition by any employee benefit
         plan (or related trust) sponsored or maintained by the Company or any
         corporation controlled by the Company or (D) any acquisition by any
         corporation pursuant to a transaction that complies with clauses (A),
         (B) and (C) of the third paragraph below; provided, further, that if
         any Person's beneficial ownership of the Outstanding Company Voting
         Securities reaches or exceeds 20% as a result of a transaction
         described in clause (A) or (B) above, and such Person subsequently
         acquires beneficial ownership of additional voting securities of the
         Company, such subsequent acquisition shall be treated as an acquisition
         that causes such Person to own 20% or more of the Outstanding Company
         Voting Securities; and provided, further, that if at least a majority
         of the members of the Incumbent Board determines in good faith that a
         Person has acquired beneficial ownership (within the meaning of Rule
         13d-3 promulgated under the Exchange Act) of 20% or more of the
         Outstanding Voting Securities inadvertently, and such Person divests as
         promptly as practicable a sufficient number of shares so that such
         Person beneficially owns (within the meaning of Rule 13d-3 promulgated
         under the Exchange Act) less than 20% of the Outstanding Company Voting
         Securities, then no Change of Control shall have occurred as a result
         of such Person's acquisition; or

-        individuals who, as of the date hereof, constitute the Board (the
         "Incumbent Board") cease for any reason to constitute at least a
         majority of the Board; provided, however, that any individual becoming
         a director subsequent to the date hereof whose election, or nomination
         for election by the Company's shareholders, was approved by a vote of
         at least a majority of the directors then comprising the Incumbent
         Board shall be considered as though such individual of the directors
         then comprising the Incumbent Board shall be considered as though such
         individual were a member of the Incumbent Board, but excluding, for
         this purpose, any such individual whose initial assumption of office
         occurs as a result of an actual or threatened election contest with
         respect to the election or removal of directors or other actual or
         threatened solicitation of proxies or consents by or on behalf of a
         Person other than the Board; or

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-        The consummation of a reorganization, merger or consolidation or sale
         or other disposition of all or substantially all of the assets of the
         Company or the acquisition of assets of another corporation ("Business
         Combination") excluding, however, such a Business Combination pursuant
         to which (A) all or substantially all of the individuals and entities
         who were the beneficial owners of the Outstanding Company Voting
         Securities immediately prior to such Business Combination beneficially
         own, directly or indirectly, more than 60% of, respectively, the then
         outstanding common shares and the combined voting power of the then
         outstanding voting securities entitled to vote generally in the
         election of directors, as the case may be, of the corporation resulting
         from such Business Combination (including, without limitation, a
         corporation that as a result of such transaction owns the Company or
         all or substantially all of the Company's assets either directly or
         through one or more subsidiaries, in substantially the same proportions
         as their ownership , immediately prior to such Business Combination of
         the Outstanding Company Voting Securities, (B) no Person (excluding any
         employee benefit plan (or related trust) of the Company or such
         corporation resulting from such Business Combination) beneficially
         owns, directly or indirectly, 20% or more of, respectively, the then
         outstanding common shares of the corporation resulting from such
         Business Combination or the combined voting power of the then
         outstanding voting securities of such corporation except to the extent
         that such ownership existed prior to the Business Combination and (C)
         at least a majority of the members of the board of directors of the
         corporation resulting from such Business Combination were members of
         the Incumbent Board at the time of the execution of the initial
         agreement, or of the action of the Board, providing for such Business
         Combination; or

-        approval by the shareholders of the Company of a complete liquidation
         or dissolution of the Company.

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