Separation And Release Agreement

EXHIBIT 10.1 SEPARATION AND RELEASE AGREEMENT THIS AGREEMENT is made and entered into as of the 4th day of August, 2005 by and between ADVANCED ENERGY INDUSTRIES, INC. (" the Company" ) and Linda Capuano (" Employee" ). (1) Employee was laid off from active employment with the Company effective August 22, 2005 (" Separation Date" ). (2) Within thirty (30) days following the expiration of the revocation period set forth in paragraph eight (8) below, the Company will pay Employee a lump sum in an amount totaling one hundred thirty five thousand dollars and zero cents ($135,000.00), subject to and less applicable withholdings. Employee' s group health insurance benefits will terminate effective August 31, 2005. Following the Separation Date, Employee may continue Company group insurance benefits to the extent allowed under applicable law (i.e., COBRA). (3) On the Separation Date, the Company paid to Employee all paid time off earned and unused as of the Separation Date. However, Employee will not be entitled to or accrue any additional vacation or fringe benefit eligibility or participation following the Separation Date, except as expressly set forth in this Agreement. (4) Employee agrees that, except as Employee' s responsibilities with the Company may require, Employee will not at any time disclose or use any confidential information or data acquired or developed during Employee' s employment. Further, Employee agrees that Employee will not at any time engage in any conduct contrary to the interests of the Company or enable others to make use of sensitive or confidential information of or relating to the Company obtained during Employee' s employment. If an Employee Agreement was executed, Employee understands and agrees that Employee remains bound by the provisions of said Employee Agreement which remains in full force and effect. (5) For a period of one year after Employee' s Separation Date, Employee agrees that Employee will not, directly or indirectly, solicit any current employee of the Company, on Employee' s behalf or on behalf of any other person, company, corporation, or other entity. (6) WAIVER AND RELEASE BY EMPLOYEE. In consideration of the payments and other consideration as set out in this Agreement, the Employee, Employee' s marital community, Employee' s heirs, executors, administrators, successors, and assigns, hereby knowingly and voluntarily waives, releases, acquits and forever discharges the Company, and all of its affiliates, partners, subsidiaries and their respective agents, officers, directors, shareholders and employees from any liability, action, suit, claim, damages, judgment, known or unknown, liquidated or unliquidated, fixed or contingent which Employee has ever had or ever may have, arising out of or in conjunction with Employee' s employment with the Company or any of its predecessors or af ...