exv10w4






Exhibit 10.4









August 14, 2010




VIA EMAIL




Mr. Danny C. Herron

7211 Stadler Court

Fort Collins, CO 80528




Dear Mr. Herron:



We are pleased to offer you the position of Executive Vice President and Chief Financial Officer
with Advanced Energy Industries, Inc. in our Fort Collins location, reporting to Dr. Hans Betz,
Chief Executive Officer. This offer is subject to satisfactory completion of Advanced Energy’s
pre-employment screening process.



Assuming a satisfactory background check and drug screen, your employment will commence on a date
to be agreed which will be as soon as possible subject to your commitments to your current
employer. Your starting salary will be $305,000 on an annualized basis and will be paid
semi-monthly.



At the first regular Board of Directors meeting following your start date, we will request approval
to grant you 7,500 Restricted Stock Units (RSUs) and the option to purchase 52,500 shares of common
AE stock. The grants will be made in four quarterly installments (1,875 RSU’s and 13,125 options
each) over your first year of employment. The option price will be the fair market value of the
stock, which would be the closing price on the dates of each grant. You must be an employee of the
company for the grants to be made. Other terms will be defined in the document that provides the
grants.



All employees are eligible to participate in the Corporate Incentive Plan. The 2010 target cash
incentive percentage for this position is 60% of the annual base salary, and in accordance with the
plan document, will be dependent on both company financial performance and your individual
performance. Incentive plans are re-evaluated and are subject to change at any time, at the
discretion of the company. These plans typically reward performance related to corporate and
individual objectives. The incentive compensation is described in a separate document and will be
provided to you upon acceptance.



Benefits become effective the first day of the month following your hire date. Benefit programs
are re-evaluated and are subject to change at any time, at the discretion of the company. This may
include coverage offered and the cost of coverage. You will be provided with additional
information and will have an opportunity to enroll in benefits when your employment commences.



As an executive of Advanced Energy you are expected to manage your personal time off in an
efficient manner. You will not accrue PTO but will be able to take time off at your own
discretion. Advanced Energy also recognizes seven (7) company-sponsored holidays during each
calendar year.








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Please bring the following documents with you on your first day of employment:





	 	•	 	Code of Ethical Conduct
	 
	 	•	 	New Employee Confidential Information Form
	 
	 	•	 	Designated Medical Provider
	 
	 	•	 	Key Employee Confidentiality Agreement
	 
	 	•	 	Employment Eligibility Verification form — In order to comply with the Immigration
Reform and Control Act of 1986, you will be required to present documentation authorizing
your right to work in the United States. A list of acceptable documents is enclosed for
your review. Please bring original documents with you on your first day of employment
	 
	 	•	 	W-4 form — Employee’s Withholding Allowance Certificate.
	 
	 	•	 	Invitation to Self-Identify — Submission of this form is voluntary and refusal to
provide it will not subject you to any adverse treatment
	 
	 	•	 	Automated Deposits Authorization




The information in this letter is not intended to constitute a contract of employment, either
express or implied. Your employment with Advanced Energy Industries, Inc. is at will.



Danny, we believe we can offer you a challenging and rewarding experience at Advanced Energy and we
look forward to a positive response from you no later than August 16, 2010, at which time this
offer expires. In the interim, please do not hesitate to contact me directly with any questions
you may have.




Kind regards,









Randall S. Hester

Vice President, Human Resources

Advanced Energy Industries, Inc.




(970) 407-6357 office

(970) 214-2810 mobile





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