Company: IPGP
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0001111928-25-000054
Chunk: 67

Company: IPG PHOTONICS CORP
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 67
---
5 ANNUAL MEETING AND PROXY STATEMENT

Proposal 3: Approval of the 2025 Incentive Compensation Plan

#### Awards
Award Agreements. Each award granted under the 2025 Plan will be represented by an award agreement in a form approved by the Committee. The award agreement, which may be comprised of more than one physical or electronic document, is subject to the terms of the 2025 Plan and will incorporate such terms and conditions required under the 2025 Plan and any terms specified by the Committee.

Minimum Vesting Period. Stock options, stock appreciation rights, restricted stock, stock units, performance shares, performance units, and other equity-based awards under the 2025 Plan are subject to a minimum required vesting period of one year, except that up to 5% of the shares reserved for issuance under the 2025 Plan may be granted to participants without regard to any minimum vesting period. Additionally, notwithstanding the foregoing, annual awards to non-employee directors that occur in connection with the Company’s annual meeting of stockholders may vest on the date of the Company’s next annual meeting of stockholders that occurs at least 50 weeks following the prior year's annual meeting of stockholders.

Performance Goals. The Committee may establish performance goals in connection with the grant of an award as the Committee determines appropriate.

Stock Options. Stock options awarded under the 2025 Plan may be in the form of “incentive stock options” that are intended to comply with the requirements of Section 422 of the Code, or “non-qualified stock options.” Special rules apply with respect to the terms of incentive stock options in order to meet the requirements of Section 422 of the Code. The Company may also grant a stock option to any grantee that allows the participant to purchase shares of stock of any corporation that the Company, affiliate or group company acquires or merges with. Such “conversion stock options” must have the same economic value as the original stock option. Conversion stock options granted to a holder of incentive stock options will retain the same restrictions as the incentive stock options, unless the Committee determines otherwise.

The exercise price of stock options granted under the 2025 Plan must be equal to or greater than the fair market value per share of the common stock determined on the award date. So long as the Company is publicly traded, the fair market value of its stock is deemed to be the closing price of the stock on the national securities exchange or other market system on the date of calculation (or on the last