X0303 4 2009-05-20 0 0000927003 ADVANCED ENERGY INDUSTRIES INC AEIS 0001228910 SCHATZ DOUGLAS S & SCHATZ JILL E FAMILY TRUST PO BOX 481 FORT COLLINS CO 80522 0 0 1 0 Put Option (right to sell) under Prepaid Forward Contract 2009-05-20 4 J 0 150000 A Common Stock 150000 150000 D On May 8, 2009, the Douglas S. Schatz and Jill E. Schatz Family Trust entered into a series of variable prepaid forward contracts with a securities broker. The Family Trust's order in respect of one of such contracts, relating to 150,000 shares of AEIS common stock, became binding on the Family Trust as of May 20, 2009. When such order has been fulfilled, the broker will deliver to the Family Trust a cash payment equal to approximately 84% of the market value of the shares. Upon settlement of the contract, the date of which will be 18 months plus one week following the date the order has been fulfilled, the Family Trust may deliver to the broker between 120,000 and 150,000 shares of AEIS common stock, depending on the market price of the AEIS common stock on the two trading days prior to the settlement date. In the alternative, at the Family Trust's option, the Family Trust may deliver cash in an amount equal to the fair market value of the shares that the Family Trust would otherwise deliver upon settlement. Accordingly, the Family Trust may retain some or all of the shares subject to the contract. The Family Trust has pledged to the securities broker 150,000 shares of the common stock held directly by the Family Trust, to secure the Family Trust's performance of the contract upon settlement; however, unless and until common stock is delivered to the securities broker upon settlement of the contract, the Family Trust will retain all voting and dividend rights in respect of such shares. In connection with the Family Trust's pledge of 150,000 shares to the securities broker, Silicon Valley Bank released such shares from the pledge agreement under which the Family Trust previously had pledged such shares to Silicon Valley Bank as collateral for a line of credit entered into by the Family Trust, Douglas Schatz and Jill Schatz. All other shares of AEI common stock held directly by the Family Trust and pledged to Silicon Valley Bank as of May 20, 2009 remain pledged as collateral for the Silicon Valley Bank line of credit. The remaining variable prepaid forward contract entered into by the Family Trust on May 8, 2009 relates to an additional 150,000 shares. The Family Trust has paid an affiliate of the securities broker a fee in connection with the variable prepaid forward contract. The shares subject to the variable prepaid forward contract are owned directly by the Douglas S. Schatz & Jill E. Schatz Family Trust, a ten percent owner of the issuer, and indirectly by Douglas S. Schatz and Jill E. Schatz, co-trustees of the trust. Douglas S. Schatz is Chairman of the Board of the issuer. /S/ Thomas O. McGimpsey (Power of Attorney) 2009-05-22