Document:

exhibit10-2.htm

 

    
      

    

    

    
      	
              ICO,
      Inc.

               FY
      2010 Annual Incentive Bonus Plan Matrix- CFO

            
	
               

              This
      page constitutes the FY 2010 Annual Incentive Bonus Plan for Bradley T.
      Leuschner, Chief Financial Officer.

            
	 
      	 
      	 
      
	 
      	 
      	
              Pay-out
      as a percentage of base salary

            
	
              Measurement

            	
              Weighting

            	
              0%

            	
              30%

            	
              60%

            
	
              Corporate
      Expenses (1)

            	
              25%

            	
              *

            	
              *

            	
              *

            
	
              ICO,
      Inc. consolidated ROE

            	
              25%

            	
              *

            	
              *

            	
              *

            
	
              ICO,
      Inc. consolidated

              Cash
      Flow from operations

            	
              25%

            	
              *

            	
              *

            	
              *

            
	
              Subjective/Qualitative
      Factors

            	
              25%

            	
              As
      recommended by CEO, and determined and approved by the Compensation
      Committee

            	
              As
      recommended by CEO, and determined and approved by the Compensation
      Committee

            	
              As
      recommended by CEO, and determined and approved by the Compensation
      Committee

            

    

     

    Measurement
definitions

     

    (1)
Corporate Expenses- Defined as Corporate general and administrative
expenses. [*]

     

    ROE-
Net income from continuing operations, excluding merger related costs,
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 of fiscal year 2010).  If ICO, Inc. ceases
to be an independent Company during the year, the computation of ROE will
include only the period of time that ICO, Inc. was
independent.

     

    Cash
Flow from Operations – Cash flow from operating activities (on a
consolidated basis) 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 (on a consolidated basis)
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 times three, the third quarter cash
flow times two and the fourth quarter cash flow times one.  That sum
will then be divided by 2.5.

     

    Computational
Note

     

    For each
measurement the bonus amount payable is calculated as the result achieved for
each measurement (i.e. the 0%, 30% or 60% 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
Provisions

     

    For the
purpose of this paragraph termination for “Cause” and “Good Reason” have the
meanings ascribed to those terms in the ICO, Inc. Change in Control Severance
Plan and the CFO’s Participation Agreement in relation thereto.  The
CFO will not be entitled to a bonus under this Plan, or otherwise with respect
to FY 2010, if, prior to October 1, 2010, (a) he resigns from employment with
the Company (except in the case of resignation or termination for Good Reason),
or (b) he is terminated from employment for “Cause.” If the CFO is terminated
without cause, a pro rata bonus will be paid to him following the conclusion of
fiscal year 2010, in no event later than December 15, 2010.

     

    

    *Indicates
redacted.exhibit10-3.htm

 

    
      

    

    ICO,
Inc.

    FY
2010 Annual Incentive Bonus Plan - CEO

    

    
      	
               

                  
      The following is the formula for calculating the FY 2010 Annual Incentive
      Bonus for the Chief Executive Officer, A. John Knapp, Jr.:

               

              The
      sum of the Annual Incentive Bonuses paid to the Company’s other five
      ELT members based on FY 2010 performance, in accordance with their
      respective FY 2010 Annual Incentive Bonus Plans

               

              divided
      by:

               

              The
      sum of the FY 2010 Base Salaries of the Company’s other five ELT
      members

               

               

              multiplied
      by:

               

               

              Mr.
      Knapp’s FY 2010 Annual Base Salary

               

              For
      the purpose of the above formula, “the other five ELT members” are (1)
      Donald Eric Parsons, President – ICO Polymers North America; (2) Stephen
      E. Barkmann, President – Bayshore Industrial; (3) Derek R. Bristow –
      President, ICO Europe and Asia Pacific; (4) Bradley T. Leuschner – Chief
      Financial Officer; and (5) Charlotte Fischer Ewart, General
      Counsel.

               

              Additional Provisions

              For
      the purpose of this paragraph, termination for “Cause” and “Good Reason”
      have the meanings ascribed to those terms in the ICO, Inc. Change in
      Control Severance Plan and the Business Unit President’s Participation
      Agreement in relation thereto.  The CEO will not be entitled to
      a bonus under this Plan, or otherwise with respect to FY 2010, if, prior
      to October 1, 2010 (a) he resigns from employment with the Company (except
      in the case of resignation or termination for Good Reason), or (b) he is
      terminated from employment for “Cause.” If the CEO is terminated without
      cause, a pro rata bonus will be paid to him following the conclusion of
      fiscal year 2010, in no event later than December 15, 2010.exhibit10-4.htm

 

    
      

    

    Retention
Agreement

    

    This Retention Agreement (this
“Retention Agreement”) is made and effective on the 8th day
of December, 2009 (the “Effective Date”), by and among ICO Technology, Inc. a
Delaware corporation (“the Company”), ICO, Inc. (“ICO”) and Bradley T.
Leuschner, a resident of the State of Texas (the “Employee”).

    

    RECITALS

    

    WHEREAS,
Employee is presently employed by the Company, and works at the Company’s
corporate offices in Houston Texas.

    

    WHEREAS, ICO entered into an Agreement
and Plan of Merger with A. Schulman, Inc. (“ASI”) and Wildcat Spider, LLC, a
wholly-owned subsidiary of ASI, dated as of December 2, 2009 (the “Merger
Agreement”), pursuant to which ICO will be merged with and into Merger Sub, with
Merger Sub surviving as a wholly-owned subsidiary of ASI (the
“Transaction”).

    

    WHEREAS, the Company would like to
provide Employee with a retention bonus upon the occurrence of the Closing (as
defined in the Merger Agreement) provided that such a Closing occurs and that
Employee remains employed by the Company (or is terminated without cause, as
defined below) and faithfully performs all duties and responsibilities related
to such employment from the Effective Date until and including the Closing Date
(as in the Merger Agreement), and subject to the terms and conditions set forth
in this Retention Agreement.

    

    NOW, THEREFORE, the Company and
Employee agree as follows:

    

    1.           Definitions

    In addition to the definitions set
forth above in the Recitals, as used herein, the following terms shall have the
meanings set forth below:

    

    a)           “Retention
Bonus” means the sum of Fifty-five Thousand Dollars ($55,000.00), payable
pursuant to the terms and conditions set forth in Section 2
below.  The Retention Bonus shall be subject to reduction for any and
all applicable federal, state, and/or local withholding obligations or any other
withholdings required to be made by law.

    

    b)           “Cause”
has the meaning ascribed to such term in the CIC Plan.

    

    
      	
               
      

            	
              c)

            	
              “CIC
      Plan” means the ICO, Inc. Change in Control Severance Plan (“CIC
      Plan”).

            

    

    

    d)           “Participation
Agreement” means Employee’s executed Participation Agreement pursuant to which
Employee is entitled to receive benefits under the CIC Plan.

    

    e)           “Pre-Closing
Period” means the time period from and after the Effective Date, until and
including the Closing Date, provided that the Closing occurs.

    

    2.           Payment of Retention
Bonus

    

    a)           Employee
shall be paid the Retention Bonus within ten (10) business days after the
Closing occurs, provided that:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              1)

            	
              during
      the Pre-Closing Period Employee (i) faithfully performs all duties and
      responsibilities related to Employee’s employment with the Company, (ii)
      does not resign from employment with the Company, and (iii) is not
      terminated by the Company for Cause;
and

            

    

    

    
      	
               
      

            	
              2)

            	
              Employee
      complies with all the Company policies and any agreements Employee may
      have with the Company, including all duties regarding conflict of
      interest, fiduciary duties, and all non-disclosure, non-solicitation and
      non-competition obligations for the benefit of the
  Company.

            

    

    

    b)           In
the event that Employee’s employment is terminated by the Company without Cause
during the Pre-Closing Period, the Company shall pay Employee the Retention
Bonus within ten (10) business days after the Closing (provided that the Closing
actually occurs).

    

    c)           Notwithstanding any other provision
of this Agreement, or any provision to the contrary in ICO’s Severance Policy,
the CIC Plan, the Participation Agreement or any other agreement, plan or
arrangement, the Retention Bonus shall be in addition to, and not in lieu of,
any other bonus, incentive or severance payments, and shall not reduce the
amount payable by ICO, the Company or any affiliate pursuant to any other plan
or arrangement of any kind.  ICO and the Company agree that in the
event of any conflict between this provision and any other plan or arrangement
of the Company or any affiliate, the terms of this provision shall
control.

    

    3.           Failure of Closing to
Occur

    

    In the event that (a) the Merger
Agreement is terminated by the parties thereto, and/or (b) the Closing does not
occur for any reason: (i) Employee shall not be entitled to payment of the
Retention Bonus, and (ii) this Retention Agreement shall
terminate.  ICO’s issuance of a press release announcing that the
Merger Agreement has been terminated shall be conclusive evidence that the
Closing and Closing Date have not occurred and shall not occur, and that no
Retention Bonus shall be due and payable to Employee under any
circumstances.

    

    AGREED
AND ACCEPTED:

    

    
      	
              ICO
      Technology, Inc.

            	 
      	
              Bradley
      T. Leuschner

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/
      A. John Knapp, Jr.

            	 
      	
              /s/
      Bradley T. Leuschner

            
	 
      	
              A.
      John Knapp, Jr.

            	 
      	 
      
	 
      	
              President

            	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              ICO,
      Inc.

            	 
      	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/
      A. John Knapp, Jr.

            	 
      	 
      
	 
      	
              A.
      John Knapp, Jr.

            	 
      	 
      
	 
      	
              President
      & CEO

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