Document:

exv10w28

Exhibit 10.28

Credit Facility Agreement

Regarding an Umbrella Facility in the amount of

EUR 15.000.000,—

dated 23.06.2010

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

	Borrower:	 	IPG Laser GmbH
	 
	Bank:	 	 Deutsche Bank AG, Filiale Deutschlandgeschäft, Siegen

§ 2 — Credit Facility:

	(1)	 	Aggregate Facility Amount
	 
	 	 	The Bank makes available to the Borrower the Credit Facility in the amount of EUR
15.000.000,— (in words: Euro fifteenmillion) (“Aggregate Facility Amount”).
	 
	 	 	The Credit Facility may be utilized through the following partial credit facilities:
	 
	 	 	1) Cash Credit Facility € 12.000.000,— (in words: Euro twelvemillion) (“Cash Credit
Facility”)
	 
	 	 	2) Guarantee Facility € 3.000.000,— (in words: Euro threemillion) (“Guarantee Facility”)
	 
	(2)	 	Term of the Credit Facility
	 
	 	 	The Credit Facility is available until June 30, 2012.
	 
	(3)	 	Purpose
	 
	 	 	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 Com-

 

 

	 	 	panies”). The use of this Credit Facility for acquisitions irrespective of
form, duration and amount will require the prior consent of the Bank.
	 
	(4)	 	Remaining obligation
	 
	 	 	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.
	 
	(5)	 	Definitions
	 
	 	 	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.

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	 	 	“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

	 	 	 

	Availability Cash Credit Facility:

	 	The Credit Facility may be utilized up to a maximum aggregate amount
of the Cash Credit Facility through:
	 
	 	 
	Cash Credit

	 	   –    Current account cash advances in Euro (“Cash Credit”).

	 
	 	 
	Fixed-Interest Loan

	 	   –    Short-term loans with fixed interest rates in Euro with
credit periods of 1, 2, 3 or 6 months (“Fixed-Interest Loans”) as
agreed upon on a case by case basis. The minimum amount for a
utilization by way of Fixed-Interest Loan is Euro 250.000,—.

	 
	 	 
	EURIBOR-Credit

	 	   –    Loans with fixed interest-rates in Euro on the basis of
EURIBOR with interest periods of 1, 2, 3 or 6 months (“Interest
Periods”), however not exceeding the Maturity Date (“EURIBOR-Credit”),
after a drawdown notice by the Borrower no later than 10:00 a.m.
Frankfurt time on the second Business Day prior to the day, on which
payment shall be made or a new Interest Period would commence. The
minimum amount for a utilization by way of EURIBOR-Credit is Euro
250.000,—.

	 
	 	 
	 

	 	Each drawdown notice must specify the designated amount of the
utilization and the duration of the Interest Period chosen and shall
be irrevocable. Business Day is any day (except Saturdays and Sundays)
on which banks are open for general business in Cologne, Germany.
	 
	 	 
	 

	 	If the Interest Period does not end on a Business Day, the Interest
Period is extended to the following Business Day, unless this day
falls within the next calendar month. In this case the Interest Period
ends on the immediate previous Business Day.

§ 4 — Utilization of the Guarantee Facility

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	Guarantee Facility

	 	The Guarantee Facility may be
utilized through indemnities and
bank guarantees issued upon
instructions of the Borrower, which
can also be issued denominated in
foreign currency on a case by case
basis. The Borrower shall give the
instruction to issue a bank
guarantee using the wording in each
case prepared by the Bank.
	 
	 	 
	Conditions for Guarantees:

	 	Each utilization of the Credit
Facility by way of bank guarantee is
subject to the Conditions for
Guarantees of the Bank, which take
priority over the General Business
Conditions of the Bank.
	 
	 	 
	Duration of Bank Guarantees:

	 	Each bank guarantee issued shall
have a limited contractual term not
exceeding 3 years. If a limited
contractual term can not be agreed
upon, the economical lifetime (until
the expected expiration of the bank
guarantee issued) shall not exceed 3
years.
	 
	 	 
	Conditional Acceptance:

	 	Before accepting an instruction to
issue a bank guarantee the Bank is
entitled to consider such
instruction with respect to its
feasability under legal, economical
and policy aspects.
	 
	 	 
	Utilization in foreign currency

	 	All afore mentioned utilizations may
be made in foreign currency, namely
in US Dollar, japanese Yen,
“Schweizer Franken”, Pound Sterling
or with prior consent of the Bank in
every other currency which is freely
available, convertible and
transferable in the European
interbank market.

§ 5 — Utilisation of the Credit Facility by Affiliated Companies

	(1)	 	Utilization 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.

	 
	(2)	 	Allocation of Subsidiary Facilities
	 
	 	 	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.

	 
	(3)	 	Exemption from Banking Secrecy
	 
	 	 	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.

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§ 6 — Repayment

	(1)	 	The Borrower shall repay all amounts outstanding under the Facility in full at latest upon
termination of the Credit Facility Agreement unless otherwise agreed.
	 
	(2)	 	If after the termination of the Guarantee Facility bank guarantees issued are outstanding and
the collateral provided to the Bank does not cover the full amount of any risk resulting from
such guarantees, the Borrower shall procure that the Bank be released within a reasonable
period of time of its obligations under such bank guarantees. The Borrower is entitled to
provide the Bank instead with security by pledge of an amount in cash and in the corresponding
currency of the bank guarantees issued. Section 10 of the Conditions for Guarantees remains
unaffected.

§ 7 — Rates of Interest / Fees

	(1)	 	General

	 	(a)	 	Authorization for debiting
	 
	 	 	 	The Bank is entitled to debit due interest, commission, remuneration and fees to the
account No 460 0280255 of the Borrower unless otherwise agreed.
	 
	 	(b)	 	Arrangement Fee
	 
	 	 	 	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 10.000,—. The
arrangement fee will become due upon
effectiveness of the Credit Facility Agreement.
	 
	 	(c)	 	Commitment Fee
	 
	 	 	 	For holding available the Credit Facility the Bank charges a commitment fee in the
amount of 0,50% p.a. of the unutilized Aggregate Cash Credit Facility Amount of IPG
Laser GmbH.

	(2)	 	Cash Credit Facility

	 	(a)	 	Interest rate for current account cash advances
	 
	 	 	 	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 1,20% 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.
	 
	 	(b)	 	Interest for Fixed Interest Loans
	 
	 	 	 	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.
	 
	 	(c)	 	Interest for EURIBOR-Credit

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	 	 	 	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
0,85% 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.
	 
	 	(d)	 	Utilization in foreign currency
	 
	 	 	 	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.

	(3)	 	Guarantee Facility

	 	(a)	 	Commission on Bank Guarantees:
	 
	 	 	 	Unless otherwise determined beforehand for a certain bank guarantee the commission
on bank guarantees is 1,0% p.a., minimum Euro 300,— 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.

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	 	(b)	 	Fee for the Issuance of Bank Guarantees:
	 
	 	 	 	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.
	 
	 	(c)	 	Remuneration for Special Services on Bank Guarantees:
	 
	 	 	 	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 only utilize this Credit Facility once and so long as the following Conditions
Precedent are fulfilled:

	(1)	 	The Bank has received the following documents from the Borrower:

	 	-	 	Actual extract from the Commercial Register;
	 
	 	-	 	Articles of association incorporating all amendments if any;
	 
	 	-	 	Board resolution authorizing the directors of the Borrower to sign the Credit
Facility Agreement on behalf of the Borrower according to the company documents if
required;
	 
	 	-	 	3 year forecast for the group and the borrower (each in content and credit
assessment satisfactory to the bank);
	 
	 	-	 	actual table of remaining line-of-credit facilities of the group (amount,
maturity, purpose, collateralization).

	(2)	 	The agreed collateral is in full force and effect;
	 
	(3)	 	No event of default has occurred on the date of the utilization which gives the Bank the
right to terminate this Credit Facility at any time without notice or which gives the Bank the
right to terminate this Credit Facility after setting of a deadline and/or warning;

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	(4)	 	The Borrower is not in default with any obligation vis-à-vis the Bank,
	 
	(5)	 	The Bank has received a written confirmation of the Borrower stating that the Credit Facility
to be drawn by it under this Credit Facility Agreement is being solely drawn for its own
account and that it is not acting for another person as beneficial owner within the meaning of
Section 1 para 6 of the German Anti-Money-Laundering Act (Geldwäschegesetz).

The Bank is entitled to allow utilization without the conditions precedent being fulfilled. The
obligation of the Borrower to comply with the conditions precedent remains unaffected hereby unless
the Bank has waived definitively and expressly the compliance with certain conditions precedent.

§ 10 — General Undertakings

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

	(1)	 	Information
	 
	 	 	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

	 	-	 	an original of its audited financial statement, at least with the content
required by law, including notes and management report;
	 
	 	-	 	the audited consolidated financial statement (consolidated balance sheet,
consolidated statement of operations and notes) together with the group management report
of the Borrower’s group of companies including the respective auditor’s reports.

	 	 	Furthermore, the Borrower will provide the Bank with quaterly 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 further documents which deliver insight into the economic
conditions on demand. The Borrower will inform the Bank immediately in case material
changes or divergences in regard to the information given or documents handed over
(including plannings and predictions) occur or in case there is evidence to indicate
that information given or documents handed over are incomplete or incorrect.
	 
	(2)	 	Purpose
	 
	 	 	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.
	 
	(3)	 	Pari Passu / Negative Pledge
	 
	 	 	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

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	 	 	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

	 	•	 	all existing collateralized credit facilities and loans of the Borrower
(collateralized by e.g. mortgages) as mentioned in Annex 2 which is an integral part of
the credit agreement, and renewals thereof,
	 
	 	•	 	not similar credit facilities as long-term-loans (with a term of 3 years or more)
for capital expenditures for example,
	 
	 	•	 	liens securing new indebtedness not in excess of Euro 1,5 million on a cumulated
basis and
	 
	 	•	 	supplier’s collateral as common in trade or industry (e.g. purchase money debt) and
banking collateral as required by banks’ General Business Conditions.

	(4)	 	Ownership / Change of control
	 
	 	 	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.).
	 
	(5)	 	Credit Facitilies with other financial institutions
	 
	 	 	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.
	 
	(6)	 	Information and Cooperation regarding Credit by way of Bank Guarantee
	 
	 	 	The Borrower undertakes,

	a)	 	to provide the Bank in individual cases with all information required by the
Bank regarding the claim collaterized by the bank guarantee issued,
	 
	b)	 	to inform the Bank without delay of any changes of single and specific risks
regarding a bank guarantee issued and arising from the claim collaterized by such bank
guarantee (e.g. threatening or pending dispute regarding the settlement of the claim
collaterized by the bank
guarantee as agreed upon), as soon as a demand under the bank guarantee issued is
threatened to provide the Bank upon demand and free of charge with all infor-

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	 	 	mation and documents deemed necessary by the Bank for the verification of such right, to give the
Bank all reasonable support and to specify qualified and responsible employees of the
Borrower and place them on demand of the Bank for this purpose and to the extent
necessary at the Bank’s disposal.

	(7)	 	Information with respect to Affiliated Companies
	 
	 	 	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:

	(1)	 	the Borrower does not comply with the General Undertakings or other material obligations
under this Credit Facility Agreement or under any collateral agreement entered into in
connection with this Credit Facility Agreement, or
	 
	(2)	 	a change of ownership / change of control occurs and the parties do not reach an agreement on
the continuation of the Credit Facility Agreement on changed terms and conditions, e.g. in
respect of interest rate, collateral, or other agreements, in due time, or
	 
	(3)	 	any other financial indebtedness of the Borrower, the guarantor IPG Photonics Corporation or
any of their affiliated Companies is not paid when due or is declared, or capable of being
declared, due and payable by any creditor(s) thereof prior to its specified maturity by
reasons of the occurrence of an event of default (howsoever described) and the aggregate of
all such other financial indebtedness as aforesaid exceeds an amount of Euro 1.000.000,— or
the equivalent thereof in any other currency or currencies (“Cross Default”), or
	 
	(4)	 	a reasonable cause within the meaning of no. 19. section 3 of the General Business Conditions
of the Bank is given with respect to any Affiliated Company and its utilisation regarding
Clause 5 of the Credit Facility Agreement.

§ 12 — MISCELLANEOUS

	(1)	 	Hedges
	 
	 	 	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.
	 
	(2)	 	Foreign exchange risk
	 
	 	 	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

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	 	 	amounts outstanding exceed the
Credit Facility Amount / the respective partial credit facility amount.
	 
	(3)	 	Withholding Tax
	 
	 	 	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.
	 
	(4)	 	Transfer of the Credit Risk to third parties with disclosure of information
	 
	 	 	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.
	 
	 	 	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.
	 
	(5)	 	Expenses and Indemnity
	 
	 	 	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.
	 
	(6)	 	Judgement Currency
	 
	 	 	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.
	 
	(7)	 	Choice of Law and Juridiction
	 
	 	 	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

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	 	 	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.
	 
	(8)	 	Waiver of Jury Trial
	 
	 	 	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
	 
	(9)	 	Amendments
	 
	 	 	Any amendment to this credit agreement is required to be made in writing.
	 
	(10)	 	Effectiveness
	 
	 	 	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. 10.10.2007 between the Bank and the Borrower. Utilization under such credit
agreement will be accounted as utilization of the Credit Facility respectively.
	 
	(11)	 	Severability Clause
	 
	 	 	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

	 	 	 	 	 

	Burbach, 30 June 2010

(Place, Date)

	 	/s/ Eugene Shcherbakov
 

(Signature of the Borrower)
	 	 

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

Deutsche Bank AG

Filiale Deutschlandgeschäft

	 	 	 	 	 

	Siegen, 23 June 2010

Place, Date

	 	/s/ Hans-Werner Bieler
 

	 	 
	 
	 	 	 	 
	IPG Laser GmbH

Burbach, 30 June 2010

Place, Date

	 	/s/ Eugene Shcherbakov
 

	 	 

- 12 -

 

	 	 	 	 	 

	As guarantor only:
	 	 	 	 
	 
	IPG Photonics Corporation
	 	 	 	 
	 
	Oxford, MA 28 June 2010

	 	/s/ Timothy P.V. Mammen
 

	 	 
	Place, Date
	 	 	 	 

- 13 -Exhibit 10.51

Exhibit 10.51

Director* Compensation Summary

2011 Annual Retainer

$12,000 annual retainer paid quarterly in cash.

Meeting Fees

For each meeting of the board of directors of Green Bankshares, Inc. (the “Company”) a director
receives $540, including payment for up to two missed meetings. Directors must be present at
special meetings to be paid.

For each meeting of the board of directors of GreenBank (the “Bank”) a director receives $540,
including payment for up to two missed meetings.

Committee Meeting Fees

Members of the Executive Committee of the Bank’s board of directors receive $400 for each
twice-monthly meeting of the Executive Committee that they attend. There are four independent
director member of the Executive Committee, two permanent members and two rotating members. Each
of the two permanent members of the Executive Committee also receives an annual retainer of $1,350,
payable in equal quarterly installments.

Members of the joint Audit Committee of the Bank’s and the Company’s boards of directors receive
$400 per meeting as well as an annual retainer fee of $1,350 paid in equal quarterly installments.
The chairman of the Audit Committee also receives an annual retainer of $5,400.

Members of the joint Compensation Committee of the Bank’s and the Company’s boards of directors
receive $270 per meeting as well as an annual retainer fee of $1,350 paid in equal quarterly
installments. The chairman of the Compensation Committee also receives an annual retainer of
$2,250.

Directors receive $270 per meeting for all other committee meetings attended.

The first $3,000 of committee meeting fees will be paid to the Directors in cash. All other fees
will be paid in restricted stock awards granted quarterly based upon meeting fees accrued over the
$3,000 cash floor.

Deferred Compensation

Directors are permitted to defer their director fees pursuant to deferred compensation plans
adopted by the Bank and the Company. The Company paid interest on balances in the Plan from a
formula which provides an annual crediting rate will be 100% of the annual return on stockholders’
equity with a 4% floor and a 12% ceiling, for the year then ended, on balances in the Plan until
the director experiences a separation from services, and, thereafter, at a earnings crediting rate
based on 75% of the Company’s return on average stockholders’ equity for the year then ending with
a 3% floor and a 9% ceiling. Under the second plan, which was adopted in September 2004 and then
amended in December 2005 to comply Section 409A of the Internal Revenue Code of 1986, as amended,
directors are permitted to defer additional board and committee meeting fees, beyond those being
deferred under the original plan, into certain investment vehicles, including a “deemed” investment
in the Company’s common stock.

Equity Incentives

Each director is eligible to participate in the Company’s 2004 Amended and Restated Long-Term
Incentive Plan.

	 	 	 
	*	 	Includes directors that are also employees of the Company or the Bank.

 

 

 

Named Executive Officer Compensation Summary

The following 2011 base salaries have been approved for payment to those persons who are expected
to be the Company’s named executive officers for the year ended December 31, 2011. No cash bonuses
were paid for 2010 performance:

	 	 	 	 	 	 	 
	Name	 	Title	 	Salary
	 
	 	 	 	 	 	 
	Stephen M. Rownd

	 	Chairman of the Board and Chief Executive Officer of the
Company and the Bank
	 	$	400,000	 
	 
	 	 	 	 	 	 
	Kenneth R. Vaught

	 	President and Chief Banking Officer of the Company and the
Bank
	 	$	267,000	 
	 
	 	 	 	 	 	 
	James E. Adams

	 	Executive Vice President, Chief Financial Officer and
Secretary of the Company and the Bank
	 	$	228,000	 
	 
	 	 	 	 	 	 
	Steve L. Droke

	 	Senior Vice President and Chief Credit Officer of the Bank
	 	$	188,043	 
	 
	 	 	 	 	 	 
	William C. Adams

	 	Senior Vice President and Chief Information Officer of the
Bank
	 	$	172,682	 

Bonus

For as long as the preferred stock issued to the U.S. Department of the Treasury remains
outstanding, the Company is prohibited from paying a cash bonus to the Company’s five most highly
compensated employees.

Equity Based Incentives

The named executive officers are also eligible to participate in the Company’s 2004 Amended and
Restated Long-Term Incentive Plan, subject to the limitations on executive compensation applicable
to the Company as a result of its participation in the U.S. Treasury Capital Purchase Program (the
“CPP”) under the Troubled Assets Relief Program (“TARP”).

Benefits

The named executive officers are also eligible to participate in the Company’s and the Bank’s
broad-based benefit programs generally available to the Company’s and the Bank’s employees,
including the health, disability and life insurance programs and may defer a portion of their base
salary and bonus under the terms of a deferred compensation plan available to the Company’s
executive officers and members of senior management.

 

2

 

Capital Purchase Program Limitations

For as long as the U.S. Treasury owns any debt or equity securities of the Company issued in
connection with the CPP (other than the warrants), the Company is required to take all necessary
action to ensure that its benefit plans with respect to its senior executive officers comply in all
respects with Section 111(b) of the Emergency Economic Stabilization Act of 2008 (“EESA”), and the
regulations issued and in effect thereunder as of the closing date of the sale of the preferred
shares to the U.S. Treasury, as modified by the U.S. Treasury’s interim final rule related to
compensation and corporate governance issued on June 15, 2009 (the “IFR”). This means that, among
other things, while the U.S. Treasury owns debt or equity securities issued by the Company in
connection with the CPP (other than the warrants), the Company must:

• Ensure that the incentive compensation programs for its senior executive officers do not
encourage unnecessary and excessive risks that threaten the value of the Company;

• Implement a required clawback of any bonus or incentive compensation paid to the Company’s
senior executive officers and next twenty most highly compensated employees based on materially
inaccurate financial statements or any other materially inaccurate performance metric;

• Not make any bonus, incentive or retention payment to any of the Company’s five most highly
compensated employees, except as permitted under the IFR;

• Not make any “golden parachute payment” (as defined in the IFR) to any of the Company’s
senior executive officers or five next most highly compensated employees; and

• Agree not to deduct for tax purposes executive compensation in excess of $500,000 in any one
fiscal year for each of the Company’s senior executive officers.

Additional Information

The foregoing information is summary in nature. Additional information regarding director and named
executive officer compensation will be included in the Company’s proxy statement for the Company’s
2011 annual meeting.

 

3

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