Exhibit 10.2

 

RESTRICTED STOCK AWARD AGREEMENT

 

PECO II, Inc.

1376 State Route 598

Galion, Ohio 44833

(419) 468-7600

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Employee Name and Address:

 

 

 

Number of Restricted Shares Subject to Award:

 

Date of Award Grant:

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PECO II, Inc., an Ohio corporation (the “Company”), hereby grants to the
individual whose name appears above (the “Employee”) a Restricted Stock Award
(the “Award”) of that number of shares of its Common Stock, without par value
(the “Restricted Shares”), set forth above, subject to all of the terms and
conditions set forth in this Restricted Stock Award Agreement (this “Agreement”)
and the Company’s 2000 Performance Plan, as amended (the “Plan”). All terms and
conditions set forth in Annex I hereto and the Plan are deemed to be
incorporated herein in their entirety. Undefined capitalized terms used in this
Agreement shall have the meanings set forth in the Plan.

 

1. Vesting Provisions.

 

(a) Provided that the Employee is employed by the Company on such date, the
Employee’s Restricted Shares will be issued (subject to tax withholding) and
become vested                                         
                                                         .

 

(b) In the event of the Employee’s termination of employment with the Company
for any reason before all of the Employee’s Restricted Shares have become vested
under this Award, the Employee’s Restricted Shares that have not been issued and
have not vested shall be forfeited on the effective date of the termination of
employment; provided, however, in the event of the
Employee’s                                     
                                                        , all of the Restricted
Shares subject to this Agreement shall vest in full.

 

(c) The Compensation Committee will have the right to determine, in its sole
discretion, how an Employee’s leave of absence will affect the terms of this
Award, including the vesting and issuance of Restricted Shares hereunder.

 

(d) In the event of a Change in Control, all of the Restricted Shares subject to
this Agreement shall vest in full.

 

(e) The Company will not have any further obligations to the Employee under this
Award if the Employee’s Restricted Shares are forfeited as provided herein.

 

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2. General

 

By signing below, you agree that this award is governed by this Agreement and by
the terms and conditions contained in the Plan, as amended from time to time and
incorporated into this Agreement by reference. A copy of the Plan is available
upon request by contacting the Human Resources Department at the Company’s
executive offices.

 

PECO II, Inc.

 

By:

 

 

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Name:

 

 

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   Date                                         

Its:

 

 

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Employee

    

 

 

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            Employee Signature

   Date                                         

 

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ANNEX I TO RESTRICTED STOCK AWARD AGREEMENT

 

TERMS AND CONDITIONS OF RESTRICTED STOCK AWARD

 

1. Issuance of Restricted Stock. The Company, or its transfer agent, will issue
and deliver the vested portion of the Restricted Shares to the Employee as soon
as practicable after the Restricted Shares become vested, subject to payment of
the applicable withholding tax liability as set forth below. If the Employee
dies before the Company has distributed any portion of the vested Restricted
Shares, the Company will transfer any vested Restricted Shares in accordance
with the Employee’s will or, if the Employee did not have a will, the vested
Restricted Shares will be distributed in accordance with the laws of descent and
distribution.

 

2. Withholding Taxes. Notwithstanding anything in this Agreement to the
contrary, no certificate representing Restricted Stock shall be delivered unless
and until Employee shall have delivered to the Company or its designated
Affiliate, the full amount of any federal, state or local income and other
withholding taxes. The Company is permitted to withhold a number of shares of
Restricted Stock equal in value to Employee’s withholding obligations and to pay
this amount to the Internal Revenue Service on Employee’s behalf.

 

3. Non-transferability of Award. Until the Restricted Shares have vested as set
forth on page 1 of this Agreement, the Restricted Shares granted herein and the
rights and privileges conferred hereby may not be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated (by operation of law or
otherwise). Upon any attempt to transfer, assign, pledge, hypothecate or
otherwise dispose of such award, or of any right or privilege conferred hereby,
contrary to the provisions of the Plan or of this Agreement, or upon any
attempted sale under any execution, attachment or similar process upon the
rights and privileges conferred hereby, such award and the rights and privileges
conferred hereby shall immediately become null and void.

 

4. Conditions to Issuance of Shares. The shares of stock deliverable to the
Employee may be either previously authorized but unissued shares or issued
shares, which have been reacquired by the Company. The Company shall not be
required to issue any certificate or certificates for shares of stock hereunder
prior to fulfillment of all of the following conditions: (a) the admission of
such shares to listing on all stock exchanges on which such class of stock is
then listed; (b) the completion of any registration or other qualification of
such shares under any State or Federal law or under the rulings or regulations
of the Securities and Exchange Commission or any other governmental regulatory
body, which the Compensation Committee of the Company’s Board of Directors (the
“Compensation Committee”) shall, in its absolute discretion, deem necessary or
advisable; (c) the obtaining of any approval or other clearance from any State
or Federal governmental agency, which the Compensation Committee shall, in its
absolute discretion, determine to be necessary or advisable; and (d) the lapse
of such reasonable period of time following the date of grant of the Restricted
Shares as the Compensation Committee may establish from time to time for reasons
of administrative convenience.

 

5. No Rights as Stockholder. Until the Restricted Shares have vested and have
been issued, Employee shall not have any rights of a stockholder of the Company
with respect to the Restricted Shares, including any right to vote such
Restricted Shares or to receive dividends and distributions on such Restricted
Shares.

 

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6. Plan Governs. This Agreement and the rights of Employee hereunder are subject
to all the terms and provisions of the Plan. In the event of a conflict between
one or more provisions of this Agreement and one or more provisions of the Plan,
the provisions of the Plan shall govern.

 

7. No Right to Continued Employment. The Employee understands and agrees that
this Agreement does not impact in any way the right of the Company, or any
Affiliate of the Company employing the Executive, to terminate the employment of
Employee at any time for any reason whatsoever, with or without cause.

 

8. Addresses for Notices. Any notice to be given to the Company under the terms
of this Agreement shall be addressed to the Company, in care of the Nominating
and Compensation Committee, at PECO II, Inc., 1376 State Route 598, Galion, Ohio
44833, or at such other address as the Company may hereafter designate in
writing. Any notice to be given to the Employee shall be addressed to the
Employee at the address set forth on page 1 of this Agreement, or at such other
address for the Employee maintained on the books and records of the Company.

 

9. Captions. Captions provided herein are for convenience only and are not to
serve as a basis for interpretation or construction of this Agreement.

 

10. Agreement Severable. In the event that any provision in this Agreement shall
be held invalid or unenforceable, such provision shall be severable from, and
such invalidity or unenforceability shall not be construed to have any effect
on, the remaining provisions of this Notice and Agreement.

 

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