Credit Facility Agreement Regarding an Umbrella Facility in the amountof EUR 20.000.000, dated 18.06.2012

Exhibit 10.2

Credit Facility Agreement

Regarding an Umbrella Facility in the amount of

EUR 20.000.000,—

dated 18.06.2012

Deutsche Bank AG

Filiale Deutschlandgeschäft

Koblenzer Straße 7, 57072 Siegen

(the “Bank”)        

and

IPG Laser GmbH

Siemensstraße 7, 57299 Burbach

(the “Borrower”)

enter into the following agreement (the “Credit Facility Agreement”), pursuant to which the Bank makes available a revolving credit facility to the Borrower (the “Credit Facility”) on the basis of the General Business Conditions of the Bank (Allgemeine Geschäftsbedingungen):

§ 1 - PARTIES

§ 2 - Credit Facility:

The Bank makes available to the Borrower the Credit Facility in the amount of EUR 20.000.000,— (in words: Euro twenty million) (“Aggregate Facility Amount”).

The Credit Facility may be utilized through the following partial credit facilities:

1) Cash Credit Facility € 15.000.000,— (in words: Euro fifteen million) (“Cash Credit Facility”)

2) Guarantee Facility € 5.000.000,— (in words: Euro five million) (“Guarantee Facility”)

The Credit Facility is available until June 30, 2014.

The proceeds of the Credit Facility will only be used for general working capital financing purposes / short-term general corporate purposes / regular business activities especially the financing of the outstanding debts and inventories of the Borrower as well as – pursuant to Clause 5 – of companies of which the Borrower directly or indirectly owns a majority interest according to section 16 of the German Stock Corporation Act (Aktiengesetz) (“Affiliated Companies”). The use of this Credit Facility for acquisitions irrespective of form, duration and amount will require the prior consent of the Bank.

The obligations of the Borrower under this Agreement will not end upon expiration or termination of this Credit Facility Agreement but shall remain in full force and effect until all amounts payable to the Bank under this Credit Facility Agreement, including, without limitation, interest and all fees, have been conclusively repaid.

In this Credit Facility Agreement the following words and terms are defined as specified below:

“Banking Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in Siegen.

“EONIA” means the Euro OverNight Index Average as determined by the European Central Bank for each TARGET-day. On days which are not a TARGET-day the EONIA as determined on the immediately preceeding TARGET-day shall apply. If no EONIA is available on a TARGET-day the Bank will determine the applicable reference interest rate in accordance with section 315 German Civil Code (BGB) on the basis of the quotations for overnight funds in the European interbank market.

“EURIBOR” means the interest rate per annum for deposits in Euro for the relevant interest period displayed on the Reuters page EURIBOR01 or a respective succeeding page EURIBOR01 for 11.00 a.m. Brussels time two TARGET-days prior to the disbursement/the commencement of the respective interest period. If the EURIBOR cannot be determined two TARGET-days prior to the first interest period, the Bank and the Borrower will negotiate the interest rate for the relevant interest period. The Bank is not obligated to disburse the loan unless an agreement about the applicable interest rate has been reached. The Bank is released from its obligation to disburse the loan if an agreement about the applicable interest rate is not reached within 15 days. If the EURIBOR for an interest period following the first interest period cannot be determined the Bank will determine the applicable interest rate for the relevant interest period based on interest rates customary in the interbank market for the particular interest period plus agreed margin.

- 2 -

“Financial Indebtedness” means any indebtedness for or in respect of (i) moneys borrowed, (ii) any amount raised by acceptance under any acceptance credit facility or dematerialised equivalent, (iii) any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument, (iv) the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with GAAP, be treated as a finance or capital lease, (v) receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis), (vi) any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing, (vii) any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value shall be taken into account), (viii) any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution; and (ix) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (i) to (viii) above, (x) a guarantee, surety or other obligation for any of the obligations listed in paragraphs (i) to (ix), and (xi) provisions for pension obligations.

“TARGET-day” is any day on which the Trans-European Automated Real Time Gross Settlement Express Transfer System is open for the settlement of payments in Euro.

§ 3 – Utilization of the Cash Credit Facility

- 3 -

§ 4 – Utilization of the Guarantee Facility

§ 5 – Utilisation of the Credit Facility by Affiliated Companies

Affiliated Companies may in deduction of the respective Cash Credit Facility and based on the corporate guarantee in the amount of EUR 9,000,000.00 by the Borrower as set out in the Annex 1 to this Credit Facility Agreement (hereinafter the “Corporate Guarantee”) – only by written request of the Borrower delivered to the Bank - utilise the Cash Credit and Guarantee Facility by drawing separate cash credit and guarantee facilities up to an aggregated amount of EUR 9.000.000,00 in total, within the banking business relationship at domestic or foreign branches and / or subsidiaries of the Bank (hereinafter “Lending Office”) in compliance with the following conditions (hereinafter: “Affiliated Facilities”). No Lending Office shall hereby be obliged to make available Affiliated Facilities.

The utilization of Affiliated Facilities by the respective Subsidiary shall be effected on the basis of separate facility agreements concluded between the respective Subsidiary and the Lending Office.

The current allocation of the Affiliated Facilities to the respective Affiliated Companies as well as to the respective Lending Offices shall be reflected in Enclosure 1 as attached to the Corporate Guarantee at any point of time. In case of a change of the current allocation of the Affiliated Facilities, Enclosure 1 of the Corporate Guarantee shall be amended accordingly; in case of such amendment, the arrangements entered into in this Credit Facility Agreement shall remain unaffected.

- 4 -

The Borrower liberates the Bank towards the other Lending Offices from the obligations of Banking Secrecy with respect to all matters concerning this Credit Facility as well as the Affiliated Facilities.

§ 6 – Repayment

- 5 -

§ 7 – Rates of Interest / Fees

The Bank is entitled to debit due interest, commission, remuneration and fees to the account No 460 0280255 of the Borrower unless otherwise agreed.

For the efforts of the Bank in connection with the arrangement of this Credit Facility the Bank charges a flat fee in the amount of Euro 20.000,—. The arrangement fee will become due upon effectiveness of the Credit Facility Agreement.

For holding available the Credit Facility the Bank charges a commitment fee in the amount of 0,75% p.a. of the unutilized Aggregate Cash Credit Facility Amount of IPG Laser GmbH.

The rate of interest for current account cash advances in Euro is the percentage rate per annum which is the sum of the monthly EONIA-average rate and the margin.

The margin is 1.5 % p.a..

Interest will be calculated on the basis actual/360. Amounts will be debited monthly in arrears and upon termination of the Credit Facility Agreement.

The monthly EONIA-average rate is the interest rate as determined by the Bank at the end of each month for that respective month as the monthly average of the European Over-Night Indexed Average.

The Interest rate for Fixed-Interest Loans and the settlement of the interest will be determined in each individual case beforehand and by mutual consent.

For EURIBOR-Credit in Euro the Bank charges interest to the Borrower within the agreed upon Interest Period in the amount of the relevant EURIBOR plus margin of 1.25 % p.a. of the respective utilization. Interest are due at the end of the respective Interest Period and will be calculated by calendar days on the basis of actual / 360 days.

The Interest rate for utilization in foreign currencies and the settlement of the interest will be determined in each individual case beforehand and by mutual consent.

- 6 -

Unless otherwise determined beforehand for a certain bank guarantee the commission on bank guarantees is 1,0 % p.a., minimum Euro 250,— p.a. (respectively Euro 75,— every quarter) until further notice.

The commission on bank guarantees shall be calculated for each year or part thereof commenced and become due and payable in advance.

The Borrower shall pay a fee for each issuance of a bank guarantee (as well as for any amendment thereafter). The fee is Euro 100,— for each bank guarantee drafted by the Bank and Euro 150,— for each bank guarantee drafted by third parties / agreed upon separately. The fee is due and payable upon the issuance of the respective bank guarantee.

The Bank is entitled to further remuneration for services rendered which exceed the standard handling (starting with the instruction of the Borrower until the discharge of the bank guarantee issued) of a bank guarantee issued (e.g. wordings of bank guarantees which require a particular perusal or litigious demands under a bank guarantee issued).The remuneration is calculated by the Bank on the basis of the actual expenditure of time and manpower.

§ 8 – Collateral

The following collateral, in addition to existing collateral if applicable, shall be provided by the Borrower:

An individual Corporate guarantee by IPG Photonics Corporation, Oxford, MA 01540, USA, in form and content satisfactory to the Bank attached as Annex 2 hereto.

Details, especially regarding the purpose of the collateral, are subject to separate agreements, which respectively will be entered into.

§ 9 – Conditions Precedent

The Borrower may utilize this Credit Facility once the following Conditions Precedent are fulfilled and as long as no event of default is outstanding which constitutes or, with the expiry of a grace period and/or the giving of a notice may constitute – e.g. as the case may be with the expiry of a grace period and/ or the giving of a notice - the right to terminate the Credit Facility Agreement for reasonable cause.:

The Conditions Precedent are fulfilled, as soon as the Bank has received all documents and evidence of the Conditions Precedent listed below in form and content satisfactory to the Bank and as long as none of the Conditions Precedent has been revoked or cancelled or any evidence of the Conditions Precedent turned out to be wrong:

- 7 -

The Bank may allow utilization without the above conditions being satisfied. The obligation of the Borrower to comply with the conditions of utilization remains unaffected hereby unless the Bank has definitely and expressly waived compliance with certain conditions [in writing].

§ 10 – General Undertakings

Until all liabilities under this Credit Facility Agreement have been fully and finally discharged the Borrower undertakes the following obligations:

The Borrower undertakes to keep the Bank always informed of the current economic conditions of the Borrower and, as the case may be, the current economic conditions of the Borrower’s group of companies.

For this purpose the Borrower will, in particular, without prior request immediately upon completion and in any event within 6 months after the end of each of its financial years provide the Bank with

- 8 -

Furthermore, the Borrower will provide the Bank with quarterly reports including lists of the places of businesses, undertakings, product areas, trade receivables from third parties, inventory, report on the development of the financial condition, status report, variance analysis of IPG Photonics Corp. and IPG Laser GmbH.

The Borrower will provide upon the Bank’s demand further information and documents which give insight into its economic condition.

The Borrower will inform the Bank immediately in case material adverse changes or divergences in regard to the information given or documents handed over (including plan figures and projections) occur or in case it becomes apparent or there is evidence indicating that information given or documents handed over are incomplete or incorrect.

The Borrower undertakes to verify to the Bank on demand, also repeatedly, by appropriate documents that the Facility has been used for the agreed purpose. The Bank is not obligated to the Borrower to verify that the Facility has been used for the agreed purpose.

Until all liabilities under this Credit Facility Agreement have been discharged the Borrower undertakes the following obligations:

The Borrower undertakes not to provide or permit Affiliated Companies, its shareholders or any other person to provide any collateral to third parties for similar credit facilities (regarding terms of, e.g. the amount, period, tenor and purpose) of the Borrower, his direct and indirect partners or affiliated Companies and not to incur or let incur any liabilities which require the provision of any collateral of any kind for such credit facility to third parties without allowing the Bank to participate before or at the same time and in the same rank in this collateral or providing the Bank with equal collateral (Pari Passu).

Exception is made for

The Borrower undertakes to procure that the current ownership in the Borrower, on which the willingness of the Bank to grant the Credit Facility and to permit all utilization hereunder is based, will remain unchanged. If a change in the current ownership / change of control occurs, the parties will reach an agreement satisfactory to both sides on the continuation of the Credit Facility Agreement on changed terms and conditions, e.g., in respect of interest rates, collateral, or other agreements, prior to the occurrence of such a change.

Control is the holding of at least 30 % percent of voting rights of the Borrower. Voting rights shall be assigned according to section 30 of the German Law for Regulation of Public Offerings for the Purchase of Securities and Buy-outs (Gesetz zur Regelung von öffentlichen Angeboten zum Erwerb von Wertpapieren und von Unternehmensübernahmen.).

- 9 -

The Borrower will inform the Bank about new credit agreements or about material changes in existing credit agreements with other financial institutions (e.g. increases, terminations or demands for additional collateral) in advance if they are under negotiation and otherwise immediately upon their effectiveness.

If credit by issuance of bank guarantees is being granted to the Borrower by several lenders, the Borrower shall utilize the Credit Facility in a way that such utilization does not result in a concentration of risk (e.g. through certain types of bank guarantee) with the Bank in comparison to the other lenders.

The Borrower undertakes,

The Borrower undertakes to inform the Bank in advance if an Affiliated Company ceases to be an Affiliated Company.

§ 11 – Termination for reasonable cause without notice:

A reasonable cause which entitles the bank to terminate this Credit Facility Agreement according to no. 19 section 3 of the General Business Conditions without notice is also and especially given if:

- 10 -

§ 12 – MISCELLANEOUS

If the Bank and the Borrower have executed or will execute – whereto the Bank is not obligated – hedging transactions for the coverage of interest risk or currency risk also arising from this Credit Facility Agreement, these transactions are independent of the Credit Facility Agreement. A termination of the Credit Facility Agreement will have no effect on the validity of the hedging transactions.

Any utilization in foreign currencies must be repaid in the same currency, irrespective of changes in the exchange rate in the meantime. Amounts outstanding in foreign currencies will be accounted as utilization of the Credit Facility Amount / respective partial credit facility amount at any time on the basis of the respective current exchange rate to the Euro, as determined and published by the Bank on the Internet around 13:00 Frankfurt time of every trading day. If fluctuations in the exchange rate result in the total of amounts outstanding exceeding the Credit Facility Amount / respective partial credit facility amount, the Bank shall be entitled to demand security by pledge of an Euro-amount in cash to the extent to which the amounts outstanding exceed the Credit Facility Amount / the respective partial credit facility amount.

Any amount payable by the Borrower hereunder will be paid free and clear of and without deduction of any withholding taxes. Withholding taxes are taxes, duties or governmental charges of any kind whatsoever which are imposed or levied in, by or on behalf of the country in which the Borrower is situated, and which are deducted from any payment hereunder. If the deduction of withholding taxes is required by law, then the Borrower shall pay such additional amounts as may be necessary in order that the net amounts received by the Bank after such deduction shall equal the amount that would have been receivable had no such deduction been required.

The Bank is entitled to transfer the economic risk of this credit facility, in whole or in part, to third parties or to use its claims resulting from this credit facility for refinancing purposes (inter alia by sub-participation, transfer or pledge of the claims including the respective collateral) and to provide the relevant information to the respective third parties. Albeit, the Bank will remain the Borrower’s contractual counterparty in accordance with the terms and provisions of this Credit Facility Agreement.

The Bank is also entitled to provide the relevant information to persons who have to be involved in the execution of the transfer due to technical or legal reasons and who are obligated, contractually or by law or by professional obligation to confidentiality, to keep all information received confidential, e.g. auditors, and to credit rating agencies.

- 11 -

Third party within the above meaning can be any member of the European system of central banks, any financial institution, any finance company, any insurance company, any pension fund, any investment company or any special purpose vehicle for securitization purposes.

The Borrower shall reimburse the Bank for all reasonable and necessary costs and expenses in connection with the enforcement and/or preservation of its rights (in court or extrajudicial) against the Borrower including the enforcement and realization of collateral.

Payments made by the Borrower to the Bank pursuant to a judgement or order of a court or tribunal in a currency other than that of the Facility (the “Facility Currency”) shall constitute a discharge of the Borrower’s obligation hereunder only to the extent of the amount of the Facility Currency that the Bank, immediately after receipt of such payment in such other currency, would be able to purchase with the amount so received on a recognized foreign exchange market. If the amount so received should be less than the amount due in the Facility Currency under this agreement, then as a separate and independent obligation which gives rise to a separate cause of action the Borrower is obliged to pay the difference.

THIS AGREEMENT AND ALL RIGHTS OR OBLIGATIONS ARISING HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE FEDERAL REPUBLIC OF GERMANY.

THE BORROWER HEREBY SUBMITS TO THE JURISDICTION OF THE COMPETENT COURTS OF SIEGEN, GERMANY, AND, AT THE OPTION OF THE BANK, OF THE COMPETENT COURTS OF ITS DOMICILE. BORROWER A HEREBY IRREVOCABLY APPOINTS IPG LASER GMBH, BURBACH, GERMANY AS ITS AGENT FOR SERVICE OF PROCESS OR OTHER LEGAL SUMMONS IN CONNECTION WITH ANY ACTION OR PROCEEDINGS IN GERMANY ARISING UNDER THIS AGREEMENT. THE BORROWER IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE THAT SUCH PROCEEDINGS HAVE BEEN BROUGHT IN AN INCONVENIENT FORUM.

EACH OF THE BORROWER HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS CREDIT FACILITY AGREEMENT

Any amendment to this credit agreement is required to be made in writing.

This credit agreement becomes effective upon receipt by the Bank of the credit agreement duly signed by all parties.

With effectiveness – and only after all Conditions Precedent are fulfilled satisfactorily to the Bank - this credit agreement amends the credit facility agreement dd. 23.06.2010 between the Bank and the Borrower. Utilization under such credit agreement will be accounted as utilization of the Credit Facility respectively.

- 12 -

Should any provision of this Agreement be unenforceable or invalid, the other provisions hereof shall remain in full force and effect.

Declaration according to the Anti-Money Laundering Act

The Borrower hereby confirms to the Bank that the Credit Facility under this Credit Facility Agreement is being solely drawn for its own account

This credit agreement will be specified by citing the date in the headline on the first page.

- 13 -