Company: IPGP
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0001111928-25-000054
Chunk: 102

Company: IPG PHOTONICS CORP
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 102
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 or with respect to a Stock Unit or a Performance Unit, and which shall be payable in cash, in Common Stock, in the form of Stock Units or Performance Units, or a combination of any or all of the foregoing. Dividend Equivalent Rights on any portion of an Award shall be payable only if, and only to the extent that, the conditions and restrictions relating to such Award have been satisfied or lapse and shall be forfeited if, and to the extent that, such conditions or restrictions are never satisfied or lapse. Notwithstanding anything herein to the contrary, no Dividend Equivalent Rights may be granted with respect to any Stock Options or SARs.

78 NOTICE OF 2025 ANNUAL MEETING AND PROXY STATEMENT

Appendix A: IPG PHOTONICS CORPORATION 2025 Incentive Compensation Plan

1.14. “Effective Date” means May 20, 2025, provided that the Company’s stockholders approve the Plan on such date.

1.15. “Employee” means an employee of the Company or any Affiliate, as described in Treasury Regulation Section 1.421-1(h).

1.16. “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, including applicable regulations thereunder.

1.17. “Exercise Price” means the price at which each share of Common Stock covered by a Stock Option may be purchased.

1.18. “ Fair Market Value” means:

(a) if the Common Stock is readily tradable on a national securities exchange or other market system, the closing price of the Common Stock on the date of calculation (or on the last preceding trading date if Common Stock was not traded on such date), or

(b) if the Common Stock is not readily tradable on a national securities exchange or other market system, the value as determined by the reasonable and consistent application of a reasonable valuation method, in good faith by the Board or the Committee, in accordance with Section 409A of the Code and Treasury Regulation Section 1.409A-1(b)(5)(iv) (or any similar or successor provision) thereunder, as the Board or the Committee in its discretion selects and applies on the Award Date, at the time of exercise, or on another date of calculation.

1.19. “ Good Reason ” shall have the meaning set forth in Section 12.1.

1.20. “Group Company” means any business entity deemed by the Board to be a Group Company, including, but not