2015 LONG-TERM INCENTIVE (LTI) PLAN

The purpose of the 2015 Long-Term Incentive Plan (the “Plan”) is to drive shareholder value by providing incentives for Selected Participants (defined below) to deliver increasing return on net assets for Advanced Energy Industries, Inc. and its consolidated subsidiaries.

The Plan covers a one-year performance period from January 1, 2015 to December 31, 2015 (the “Plan Term”) and supersedes the Company’s 2012-2014 Long-Term Incentive Plan. During the Plan Term, Selected Participants will not be entitled to stock options, restricted stock units, performance stock units or other equity awards under the 2008 Plan (defined below), except for awards granted pursuant to this Plan or otherwise determined by the Compensation Committee of the Board of Directors.

For the purposes of this document only, the following definitions will apply:

“Award” or “award” shall mean an award consisting of Performance Stock Units (PSUs) or Restricted Stock Units (RSUs) pursuant to the Plan.

“Board of Directors” shall mean the Board of Directors of the Company.

“Committee” shall mean the Compensation Committee of the Board of Directors. Grants and Awards are approved by the Committee.

“Company” shall mean Advanced Energy Industries, Inc., a Delaware Corporation, and its consolidated subsidiaries.

“Fiscal Year” shall mean the 12-month period ending on December 31, 2015.

“Grant” or “grant” shall mean a grant of Stock Options (SOs) pursuant to the Plan.

“Performance Stock Unit (PSU) Award” or “PSU” shall mean a performance based restricted stock unit award under the 2008 Plan as evidenced by an award agreement that represents a commitment to provide the Selected Participant a specific number of shares of Company common stock on a future date contingent upon meeting or exceeding the performance metrics defined herein as certified by the Committee. As set forth below, the delivery of Company shares may be satisfied in whole or in part with cash as determined by the Committee.

Restricted Stock Unit (RSU) Award or “RSU” shall mean a restricted stock unit award subject to vesting based on the lapse of one or more defined periods of time and awarded under the 2008 Plan as evidenced by an award agreement that represents a commitment to provide the Selected Participant a specific number of shares of Company common stock on one or more future dates on the defined vesting date(s).

“RONA” shall mean the Company’s net income from continuing operations, excluding restructuring charges, divided by net assets (calculated, for the purposes of this Plan, as current assets less cash, less current liabilities plus net book value of property plant and equipment). The final calculation of RONA is subject to one-time adjustments/exclusions

as agreed upon by management and the Committee.

“Selected Participant” shall mean regular, full-time employees of the Company who are selected by the Committee to participate in the Plan.

“Stock Option (SO) Grant” or “SO” shall mean a grant of a non-qualified stock option under the 2008 Plan that allows the Selected Participant to purchase a specific number of shares at a pre-determined price upon the lapse of one or more defined periods of time.

“2008 Plan” shall mean the 2008 Omnibus Incentive Plan, as amended.

Participation is limited to Selected Participants who are not covered by any other long-term incentive plan and are therefore eligible to participate in the Plan.

Notwithstanding anything in the Plan to the contrary, and unless otherwise determined by the Committee, an individual shall not be eligible to participate in the Plan if such individual (a) performs services for the Company and is classified or paid as an independent contractor by the Company or (b) performs services for the Company pursuant to an agreement between the Company and any other person or entity including an employee leasing organization.

To be eligible for the Plan, a Selected Participant must be actively employed by the Company in the eligible role as of January 1, 2015, and must continue to be employed and provide the services required of their position through the applicable grant/award and associated vesting dates for SOs, RSUs and PSUs. Participants who become eligible to participate in the Plan after the beginning of the Plan Term (promoted, hired, rehired or converted from a non-employee status) may be eligible for a Grants/Awards on a prorated basis. See the “New Hires / Late Entrants” section below for additional details. Participants whose tier level changes during the Plan Term (due to promotion or demotion) may be eligible, on a prorated basis, for additional Grants and Awards (in the case of promotion) or modified vesting (in case of demotions). See the “Promotions / Demotions” section below for additional details.

A Selected Participant whose employment is terminated, either voluntarily or involuntarily (regardless of cause) prior to an applicable Grant/Award or vesting date will not earn or be eligible to receive a Grant/Award or the associated vesting thereof.

Failure to comply with the Company’s policies and internal controls, including but not limited to audit and control issues, and delegation of authority, may result in a loss of eligibility and potentially termination of employment.

For the Plan Term, with respect to the PSUs, the annual performance metrics for threshold, target and stretch RONA for the Fiscal Year has been set by the Committee and the Board of Directors.

Once established, performance metrics normally shall not be changed during the Plan Term. However, if the Committee determines that external changes, unanticipated business conditions, or significant acquisitions or dispositions have materially affected the fairness of the performance metrics, then one or more of the performance metrics may be modified during the Fiscal Year at the sole discretion of the Committee. The Committee should include a review of the corporate tax requirements should such change in performance metrics be considered.

The number of SOs, RSUs, and PSUs awarded to each Selected Participant will be based on a target annual value to be delivered to such Selected Participant based on the Selected Participant’s employment tier/title, as determined by the Committee. The target annual value for each level is as follows:

The aggregate SOs granted and RSUs and PSUs awarded would be based on the target annual value for each tier level as defined by the Committee, which would then be applied to the closing or opening stock price (or a portion thereof for SOs based on an estimated Black-Scholes value) on the grant/award date or such other date/time as determined by the Committee (with a default of the closing price on the date of grant). The Plan shall utilize SOs, RSUs, and PSUs in a targeted ratio of 50% SOs, 25% RSUs and 25% PSUs. The Committee shall establish the value of a SOs utilizing an estimated Black Scholes valuation methodology that is based the volatility, risk free rate and expected term analysis. Likewise, the Committee shall establish a value of a RSU and PSU using a valuation methodology as determined by the Committee.

The Committee shall award PSUs under the Plan at the full stretch amount (200% of target) given the performance nature of the award. While the Award of each PSU is issued on the award date as determined by the Committee, only after the Committee has confirmed that the applicable performance metric has been met for the Fiscal Year, will the Plan grant and vest shares underlying the PSU awards or settle by the delivery of cash (or a combination thereof as determined by the Committee). If settled in whole or part in cash, the amount of cash would be equal to the closing or opening market value of shares on such settlement date or such other date/time as determined by the Committee. See “Vesting Schedule” section below for additional details.

Unless a separate vesting schedule is established by the Committee for a Selected Participant, all SOs granted and RSUs Awarded under the Plan will vest ratably over a three (3) year period, with one-third vesting on each anniversary date of the date of the Grant/Award.

As soon as practicable following the end of the Fiscal Year, the Company and the Committee will evaluate actual business results against the established performance metric for the Fiscal Year in order to determine the percentage of the PSU Grant that is eligible to vest and the percentage of the underlying shares related to such PSU to be granted and vested; provided, however, that with respect to the CEO, the Board shall be consulted prior to any final determination.

The percentage of shares underlying a PSU that are vested under the Plan may vary above or below the target level based on achievement of RONA returns ranging from 50% up to 200% of the annual target value.

Vesting percentages between the threshold and target and between target and stretch levels will be interpolated based on actual RONA results to calculate the final vesting percentage.

Participants who become eligible to participate in the Plan after the beginning of the Plan Term (promoted, hired, rehired or converted from a non-employee status) will be eligible for a Grant/Award on a prorated basis. Late entrants into the Plan are subject to approval by the Committee. The actual number of SOs to be granted and RSUs or PSUs to be awarded will be prorated based on the calendar date the Selected Participant became eligible to participate during the Plan Term (“Eligibility Date”). The date the Committee approves a Selected Participant’s eligibility is considered their “Eligibility Date” for purposes of determining the timing and number of SOs, RSUs, or PSUs.

Final eligibility percentages will be interpolated based on actual “Eligibility Date” to calculate the final number of SOs to be granted and PSUs and RSUs to be awarded. A Selected Participant who becomes eligible after October 1 of the Fiscal Year will not be eligible for a Grant/Award.

The promotion of a Selected Participant shall be indicated by an approved change in tier/title level from one eligible level to another (for example, a promotion from Tier 3 to Tier 2). See “New Hires/Late Entrants” section for the treatment of individuals whose promotion results in new eligibility in the Plan (for example, a promotion from an ineligible level (tier 4 and below) to an eligible one). The Committee may in its sole and absolute discretion determine that a promotion is not entitled to an increase in Grants or Awards.

Upon approval of the promotion by the Company and, for purposes of this Plan, confirmed by the Committee, the Selected Participant may be eligible for an additional Grant of SOs or Award of RSUs or PSUs by the Committee representing the difference in targeted value between the old and new tier levels for the remainder of the Plan Term. The number of additional SOs, RSUs PSUs to be Granted/Awarded will be prorated based on the actual promotion date for the calendar year in which the promotion occurs.

A demotion of a Selected Participant shall be determined by the Company, and such action would result in a change in tier level from one eligible level to the level below (e.g., a demotion from Tier 2 to Tier 3). Any vesting that occurs following the demotion will be based upon the new level for the remainder of the Plan Term. The number of SOs, RSUs or PSUs available for vesting or settlement will be prorated based on the actual demotion date. If the demotion occurs following the end of the Fiscal Year, but prior to the vesting or settlement of SOs, RSUs or PSUs for the Fiscal Year (e.g., a demotion effective in January or early February), the Selected Participant will be eligible for the vesting/settlement at the prior tier level for the prior Fiscal Year and prorated based on the new level for the remainder of the Plan Term.

If the demotion results in the loss of eligibility in the Plan (e.g., a demotion from Tier 2 or 3 to Tier 4 or below), the Selected Participant will not be eligible for further vesting/settlement under the Plan. All unvested SOs granted and PSUs or RSUs awarded under the Plan will be cancelled as of the demotion date in the above example.

A condition precedent to receiving a Grant of a SO or Award of a RSU or PSU and the associated vesting and settlement, or prorated portion thereof, is continuous active employment, which shall include qualifying leaves of absence through the applicable vesting of SOs and settlement of RSUs or PSUs. Participants must be actively

employed by the Company on the date of Grant of SOs, Award of RSUs or PSUs, vesting of SOs and settlement of RSUs or PSUs in order to receive any benefit therefrom. A Selected Participant whose employment is terminated, either voluntarily or involuntarily (regardless of cause) prior to an applicable Grant, Award, vesting or settlement date will not be eligible for any Grant, Award, vesting or settlement. All unvested SOs and unsettled RSUs or PSUs are cancelled as of the employment termination date, except as provided below. Please note that irrespective of the terms of this Plan, if the Selected Participant is subject to a Company-issued executive change of control agreement (“CIC Agreements”), those terms may take precedence in particular situations related to certain terminations and associated vesting of SOs and settlement of RSUs or PSUs.

In addition, all vested and unvested SOs, RSUs or PSUs of a Selected Participant whose employment is terminated with cause (e.g., a violation of Company policy) is subject to cancellation and forfeiture.

Grants and Awards made under this Plan must be in accordance with and are subject to the terms of the 2008 Plan. Each Selected Participant is also required to sign or electronically acknowledge the appropriate grant and award agreements agreeing to the detailed terms and conditions of the Grant and Award. These agreements will be made available to Selected Participants at the time of Grant or Award.

The Committee will be responsible for the administration of the Plan. The Committee is authorized to interpret the Plan, to prescribe, amend, and rescind rules and regulations deemed advisable, and to make all other administrative determinations necessary. Any decision of the Committee in the interpretation and administration of the Plan, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned.

The Committee reserves the right to define Company performance metrics and to review, revise, amend, or terminate the Plan at any time without notice at its sole discretion without any liability to the Selected Participant. Only the Committee has the ability to modify the Plan, and all modifications to the Plan must be in writing and approved by the Committee, and all modifications to the Plan related to the CEO must be reviewed by the Board of Directors. Except for certain limited exceptions with respect to CIC Agreements (as discussed above), this Plan document supersedes any previous document you may have received.

The Company shall not be required to fund or otherwise segregate any cash or any other assets which may at any time be paid to Selected Participants under the Plan. The Plan shall constitute an “unfunded” plan of the Company.

In the event of any conflict between a Selected Participant’s employment agreement with the Company and this Plan, the terms of the Selected Participant’s employment agreement will control for those provisions that do not relate to equity incentive compensation.

The provisions contained in this Plan set forth the entire understanding of the Company with respect to the Plan and supersedes any and all prior communications between the Company and any employee with respect to the Plan.

In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

Any questions regarding this Plan should be directed to the Human Resources department.

This Plan does not constitute a guarantee of work, job status or employment for any period of time. Your employment at Advanced Energy Industries, Inc. or its affiliate is at will and either you or the Company or affiliate may terminate

the relationship at any time. This document is not intended to create a contract of employment or commitment of ongoing payment, express or implied.