Document:

exv10w1

Exhibit 10.1

AGREEMENT AND PLAN OF REORGANIZATION

     THIS AGREEMENT AND PLAN OF REORGANIZATION (the “Agreement”), dated as of August 5,
2008, among IPG Photonics Corporation, a Delaware corporation (the “Company”), IPG Laser
GmbH, a German company (“IPGL”), and Dr. Valentin Gapontsev (“Gapontsev”) and Igor
Samartsev (“Samartsev” together with Gapontsev, “Sellers” and each a
“Seller”).

	 	I.	 	The Company owns 100% of IPGL, and IPGL owns a 66.0% participation interest in
“Scientific and Technical Association” “IRE-Polus”, a Russian limited
liability company (“IRE”).
	 
	 	II.	 	Gapontsev and Samartsev own respectively 26.7% and 4.9% participation interests
(“Interests”) in IRE.
	 
	 	III.	 	IPGL wants to acquire all of Sellers’ Interests in IRE, and Sellers desire to
exchange all of their respective Interests in IRE in exchange solely for voting shares
(“Photonics Common Stock”) of the Company in a transaction
(‘Transaction”) that the parties intend qualifies as a reorganization within
the meaning Section 368(a)(1)(B) of the U.S. Internal Code of 1986, as amended
(“Code”).
	 
	 	 	 	Accordingly, each of the parties agrees as follows:

	1.	 	TRANSFER OF INTERESTS AND ISSUANCE OF PHOTONICS COMMON STOCK

     1.1 Closing. Subject to the satisfaction or waiver of the conditions in Section 4
below, the exchange of Interests in IRE and the Photonics Common Stock shall take place in Moscow,
Russia, at a place to be determined, at 4:00 p.m., on September 25, 2008 or at such other time and
place as the Company and the Sellers mutually agree upon (which time and place are designated as
the “Closing”). The purchase price for the Interests to be sold by Gapontsev and Samartsev
are $5,169,300 and $948,673 respectively (“Purchase Price”), which shall be paid in the form of
validly issued, non-assessable unregistered shares of Photonics Common Stock, valued at the closing
price of the Photonics Common Stock on the third trading day after the date of this Agreement. At
the Closing, each Seller shall sell and sign over to IPGL all Interests in IRE then held by him and
IPGL shall cause to be delivered to each Seller a certificate representing the Photonics Common
Stock being issued to each Seller in consideration for their respective Interests (collectively,
the “Exchange”). The date of the Exchange is referred to herein as the “Closing
Date.”

     1.2 U.S. Tax. The parties intend that (i) the Transaction qualifies as a Section
368(a)(1)(B) reorganization, and (ii) the exchange of each of the Seller’s respective Interests for
Photonics Common Stock of equivalent fair market value qualifies for tax-free treatment to each
Seller under Section 354 of the Code. The parties agree that they will take no U.S. tax position
inconsistent with such intended treatment. The parties agree to prepare, execute and file all

 

 

required notices and forms with the U.S. Internal Revenue Service (“IRS”) as may be
necessary or advisable to order to effectuate the intent of this Section 1.2, including but not
limited to forms, agreements and notices under Sections 368 and 367 of the Code and IRS regulations
thereunder.

	2.	 	REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND IPGL
	 
	 	 	Each of the Company and IPGL hereby represents and warrants to each Seller as follows:

     2.1 Organization, Good Standing And Qualification. Each of the Company and IPGL is a
company duly organized, validly existing and in good standing under the laws of its jurisdiction
of organization and has all requisite corporate power and authority to carry on its business as
now conducted and as proposed to be conducted. Each of the Company and IPGL is duly qualified to
transact business and is in good standing in each jurisdiction in which the failure so to qualify
would have a material adverse effect on its business or properties.

     2.2 Authorization and Enforceability. All corporate action on the part of the
Company and IPGL, its officers, directors and stockholders necessary for the authorization,
execution and delivery of this Agreement, the performance of all obligations of the Company and
IPGL hereunder and the authorization, issuance and delivery of the Photonics Common Stock has been
taken or will be taken prior to the Closing, and this Agreement constitutes a valid and legally
binding obligation of the Company and IPGL, enforceable against each in accordance with its
respective terms except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, and other laws of general application affecting enforcement of
creditor’s rights generally, and except as limited by laws relating to the availability of
specific performance, injunctive relief, or other equitable remedies.

     2.3 Validity of Shares. The Photonics Common Stock, when issued in compliance with
the provisions of this Agreement, will be validly issued and will be fully paid and non-assessable
and will be free of any liens or encumbrances other than those created by or imposed upon the
holders thereof through no action of the Company, and the Photonics Common Sock will be free of
restrictions on transfer, other than the restrictions on transfer under this Agreement and under
applicable state and federal securities laws.

     2.4 Governmental Consents. No consent, approval, order or authorization of, or
registration, qualification, designation, declaration or filing with, any federal, state or local
governmental authority on the part of the Company or IPGL is required in connection with the
consummation of the transactions contemplated by this Agreement, except such filings as may be
required under applicable Russian anti-trust laws and applicable U.S. state and federal securities
laws, which filings will be timely filed within the applicable periods therefor.

	3.	 	REPRESENTATIONS AND WARRANTIES OF EACH SELLER

     Each Seller hereby severally, but not jointly, represents and warrants to the Company and IPGL
that:

     3.1 Authorization And Enforceability. This Agreement, when executed and delivered by
such Seller, will constitute a valid and legally binding obligation of such Seller,

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enforceable against each in accordance with its terms, except as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and other laws of
general application affecting enforcement of creditor’s rights generally, and except as limited by
laws relating to the availability of specific performance, injunctive relief, or other equitable
remedies.

     3.2 Validity Of Interests. The IRE participation interests owned by such Seller are
validly issued and fully paid and non-assessable and are free of any liens or encumbrances other
than those created by or imposed upon the holders thereof through no action of such Seller.

     3.3 Securities Laws.

          (a) Such Seller understands that the Photonics Common Stock is not registered under the
Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws.
Such Seller understands that the offering and sale of the Photonics Common Stock is intended to be
exempt from registration under the Securities Act by virtue of Section 4(2) thereof and the
provisions of Regulation D promulgated thereunder, based, in part, upon the representations,
warranties and agreements of the Seller contained in this Agreement. Each Seller acknowledges that
the Company has no obligation to register the Photonics Common Stock under the Securities Act or
any state securities laws.

          (b) Such Seller understands that neither the Securities and Exchange Commission, any state
securities commission nor any other regulatory authority has approved the Photonics Common Stock or
reviewed or passed upon or endorsed the merits of an offering of the Photonics Common Stock or
confirmed the accuracy or determined the adequacy of any materials of the Company submitted to him.

          (c) Each Seller is aware that an investment in the Photonics Common Stock involves a number of
significant risks, including industry, economic, operating, financial, liquidity, supply,
intellectual property and other risks. Each Seller has reviewed the Form 10-K for the year ended
December 31, 2007 (the “Form 10-K”) filed by the Company with the Securities and Exchange
Commission, including the risk factors set forth therein.

          (d) Each Seller has received the audited financial statements of the Company as of and for the
period ended December 31, 2007 contained in the Form 10-K and the unaudited interim financial
statements as of and for the period ended March 31, 2008, and all other documents requested by such
Seller, has carefully reviewed them and understands the information contained therein. Each Seller
has had a reasonable opportunity to ask questions of, receive answers and obtain any additional
information from a person or persons acting on behalf of the Company concerning the offering of the
Photonics Common Stock and the business, financial condition, results of operations, litigation,
and prospects of the Company, and all such questions have been answered to the full satisfaction of
such Seller. Each Seller has had the opportunity to obtain any additional information to the
extent the Company had such information in its possession or could acquire it without unreasonable
effort or expense and has had the opportunity to have representatives of the Company provide him
with such additional information regarding the terms and conditions of this investment and the
financial condition,

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results of operations, business and prospects of the Company deemed relevant by such Seller.
Each Seller has had access to the same kinds of information about the Company that would be
contained in a registration statement filed by the Company under the Securities Act. All
documents, records, and books pertaining to the investment in the Photonics Common Stock have been
made available for inspection by each Seller.

          (e) The Sellers are unaware of, are in no way relying on, and did not become aware of the
offering of the Photonics Common Stock through or as a result of any form of general solicitation
or general advertising.

          (f) Each Seller has such knowledge and experience in financial, tax, and business matters,
and, in particular, investments in securities, so as to enable such Seller to utilize the
information made available to such Seller in connection with the offering of the Photonics Common
Stock to evaluate the merits and risks of an investment in the Photonics Common Stock and the
Company and to make an informed investment decision with respect thereto.

          (g) Each Seller is acquiring the Photonics Common Stock solely for such Seller’s own account
for investment and not with a view to resale or distribution thereof, in whole or in part. Neither
Seller has any agreement or arrangement, formal or informal, with any person to sell or transfer
all or any part of the Photonics Common Stock and neither Seller has any plans to enter into any
such agreement or arrangement.

          (h) Each Seller is willing and able to bear the substantial economic risks of the investment
in the Photonics Common Stock, including the risk of loss of such Seller’s entire investment,
indefinitely because none of the Photonics Common Stock may be sold, hypothecated or otherwise
disposed of unless subsequently registered under the Securities Act and applicable state securities
laws or an exemption from such registration is available. Each Seller understands that legends
will be placed on the Photonics Common Stock to the effect that it has not been registered under
the Securities Act or applicable state securities laws and appropriate notations thereof will be
made in the Company’s stock books. Stop transfer instructions will be placed with the transfer
agent of the securities constituting the Photonics Common Stock.

          (i) Each Seller has adequate means of providing for such Seller’s current financial needs and
foreseeable contingencies and has no need for liquidity of such Seller’s investment in the
Photonics Common Stock for an indefinite period of time.

          (j) Each Seller is a member of the Board of Directors of the Company, has had access to books
and records of the Company and has had the opportunity to ask and receive answers to questions
regarding an investment in the Photonics Common Stock. Each Seller meets the requirements of at
least one of the suitability standards for an “accredited investor” as set forth on the Accredited
Investor Certification attached hereto.

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	4.	 	CLOSING

     4.1 Company’s AND IPGL’s Conditions. The Company’s and IPGL’s obligations to
consummate the Exchange shall be subject to the fulfillment or waiver at the Closing of the
following conditions:

          (a) All required notices to and permits and approvals from the Russian government to
effectuate the Exchange shall have been made or obtained.

          (b) The Company’s Board of Directors shall have approved the Exchange and all related
transactions and agreements.

     4.2 Sellers’ Conditions. Each Seller’s obligation to consummate the Exchange shall
be subject to the fulfillment or waiver at the Closing of the following conditions:

          (a) The Company shall have delivered to each of Gapontsev and Samartsev certificates
representing shares of Photonics Common Stock to be issued to such Seller in payment of the
Purchase Price.

          (b) All required notices to and permits and approvals from the Russian government to
effectuate the Exchange shall have been made or obtained.

          (c) The Company’s Board of Directors shall have approved the Exchange and all related
transactions and agreements.

5. MISCELLANEOUS

     5.1 Transfer; Successors And Assigns. The terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective successors and assigns of the
parties. Nothing in this Agreement, express or implied, is intended to confer upon any party
other than the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in
this Agreement.

     5.2 Governing Law. This Agreement shall be governed by and construed under the laws
of the State of Delaware.

     5.3 Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     5.4 Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.

     5.5 Amendments and Waivers. Any term of this Agreement may be amended with the
written consent of the Company and each of the Sellers.

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     5.6 Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, portions of such provisions, or such provisions in their
entirety, to the extent necessary, shall be severed from this Agreement and the balance of the
Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms.

     5.7 Waivers. Any waiver, permit, consent or approval of any kind or character on the
part of any holder of any breach or default under this Agreement, or any waiver on the part of any
holder of any provisions or conditions of this Agreement, must be in writing and shall be
effective only to the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any holder, shall be cumulative and not
alternative.

     5.8 Further Cooperation. The parties hereto agree to execute and deliver any and all
additional papers, documents and other assurances, and shall do any and all other acts or things
reasonably necessary to implement the purpose and provisions of this Agreement, provided that
nothing requested shall modify the fundamental economic rights and obligations provided for in
this Agreement.

     IN WITNESS WHEREOF, the parties hereto have executed this Exchange Agreement as of the date
first above written.

	 	 	 	 	 
	 	IPG PHOTONICS CORPORATION

 	 
	 	By:  	/s/ Timothy P.V. Mammen
 	 
	 	 	Name:  	Timothy P.V. Mammen 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	IPG Laser GmbH

 	 
	 	By:  	/s/ Evgeny Shcherbakov
 	 
	 	 	Name:  	Evgeny Shcherbakov 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	SELLERS:

 	 
	 	/s/ Valentin P. Gapontsev
 	 
	 	Valentin P. Gapontsev 	 

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Igor Samartsev
 	 
	 	Igor Samartsev 	 
	 	 	 
	 

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ACCREDITED INVESTOR CERTIFICATION

YOU MUST BE ABLE TO CHECK OFF AT LEAST ONE OF THE BOXES BELOW IN ORDER TO PURCHASE SHARES

	o	 	The Seller is a natural person who had individual income of more
than $200,000 in each of the two most recent years or joint income
with his spouse in excess of $300,000 in each of the most recent
two years and reasonably expects to reach that same income level
for the current year (“income,” for purposes hereof, should be
computed as follows: individual adjusted gross income, as
reported (or to be reported) on a federal income tax return,
increased by (a) any deduction of long-term capital gains under
Section 1202 of the Internal Revenue Code of 1986 (the
“Code”),
(b) any deduction for depletion under Section 611 et seq. of the
Code, (c) any exclusion for interest under Section 103 of the Code
and (d) any losses of a partnership as reported on Schedule E of
Form 1040);
	 
	o	 	The Seller is a natural person whose individual net worth (i.e.,
total assets in excess of total liabilities), or joint net worth
with his/her spouse, will at the time of purchase of the Photonics
Common Stock be in excess of $1,000,000;
	 
	o	 	The Seller is a corporation, Massachusetts or similar business
trust, partnership, or limited liability company, or any
organization described in Section 501(c)(3) of the Internal
Revenue Code, not formed for the specific purpose of acquiring the
Photonics Common Stock, with total assets in excess of $5,000,000;
	 
	o	 	The Seller is a trust (other than a revocable grantor trust),
which trust has total assets in excess of $5,000,000, which is not
formed for the specific purpose of acquiring the Photonics Common
Stock and whose purchase is directed by a sophisticated person as
described in Rule 506(b)(2)(ii) of Regulation D and who has such
knowledge and experience in financial and business matters that he
is capable of evaluating the risks and merits of an investment in
the Photonics Common Stock;
	 
	o	 	The Seller is (i) any bank as defined in Section 3(a)(2) of the
Securities Act, or any savings and loan association or other
institution as defined in Section 3(a)(5)(A) of the Act whether
acting in its individual or fiduciary capacity; (ii) any broker or
dealer registered pursuant to Section 15 of the Securities
Exchange Act of 1934; (iii) any insurance company as defined in
Section 2(a)(13) of the Securities Act; (iv) any investment
company registered under the Investment Company Act of 1940 or a
business development company as defined in Section 2(a)(48) of the
Securities Act; (v) any Small Business Investment Company licensed
by the U.S. Small Business Administration under Section 301(c) or
(d) of the Small Business Investment Act of 1958; (vi) any plan
established and maintained by a state, its political subdivisions,
or any agency or instrumentality of a state or its political
subdivisions, for the benefit of its employees, if such plan has
total assets in excess of $5,000,000; or (vii) an employee benefit
plan within the meaning of Title I of the Employee Retirement
Income Security Act of 1974, and either (a) the investment
decision will be made by a plan fiduciary, as defined in Section
3(21) of such Act, which is either a bank, savings and loan
association, insurance company, or a registered investment
adviser; or (b) the employee benefit plan has total assets in
excess of $5,000,000; or (c) the employee benefit plan is a
self-directed plan,

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including
an Individual Retirement Account, with the meaning of Title I of such act, and the person directing the purchase is an Accredited Investor**;

	**NOTE. 	 	If the Seller is relying solely on this item (c) for its Accredited
Investor status, please print the name of the person directing the purchase in the
following space and furnish a completed and signed Accredited Investor Certification
for such person.

	o	 	The Seller is a private business development company as defined in
Section 202 (a)(22) of the Investment Advisors Act of 1940;
	 
	o	 	The Seller is a member of the Board of Directors or an executive
officer of the Company; or
	 
	o	 	The Seller is an entity (including an IRA or revocable grantor
trust but other than a conventional trust) in which all of the
equity owners meet the requirements of at least one of the above
subparagraphs.

      

Initial

8exv10w2

Exhibit 10.2

DEUTSCHE BANK TRUST COMPANY AMERICAS

60 WALL STREET

NEW YORK, NEW YORK 10005

May 8, 2008

Wellman, Inc.

1041 521 Corporate Center Drive

Fort Mill, South Carolina 29715

Attention: Chief Financial Officer

and Treasurer and Chief Accounting Officer

Re: Wellman, Inc. Credit Agreement dated as of February 27, 2008

     Reference is hereby made to that certain Credit Agreement, dated as of February 27, 2008, by
and among Wellman, Inc. (the “Funds Administrator”) and the other Borrowers party thereto,
as debtors and debtors in possession, as Borrowers, the Lenders from time to time party thereto,
Deutsche Bank Trust Company Americas, as Administrative Agent (in such capacity, the
“Administrative Agent”) and Collateral Agent, and the other agents signatory thereto (as
amended, restated, supplemented, or otherwise modified from time to time, the “Credit
Agreement”). Capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Credit Agreement.

     The undersigned Administrative Agent, on behalf of the Majority Lenders, hereby consents to
the Funds Administrator’s request that Section 9.1(i)(xvi) of the Credit Agreement be modified by
replacing the text “within 90 days after the Petition Date” therein with the text “on or before
May 29, 2008”. Except as expressly amended hereby, the Credit Agreement continues in full force
and effect and the amendment set forth above shall be limited precisely as written.

[signature page follows]

 

 

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	DEUTSCHE BANK TRUST COMPANY	 	 
	 	 	AMERICAS, as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Marguerite Sutton
 

	 	  
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Enrique Landaeta
 

	 	 
	 

	 	Title:
	 	Vice President	 	 

	 	 	 	 	 
	Acknowledged and agreed as of	 	 
	This 8 day of May, 2008	 	 
	 
	 	 	 	 
	WELLMAN, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Keith R. Phillips
	 	 
	 

	 	 	 	 
	Title:

	 	Chief Financial Officer	 	 

Signature Page to Consent

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