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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No.          )

Filed by the Registrantý


Filed by a Party other than the Registranto


Check the appropriate box:


o

 

Preliminary Proxy Statement


o

 

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))


ý

 

Definitive Proxy Statement


o

 

Definitive Additional Materials


o

 

Soliciting Material Pursuant tounder §240.14a-12



Allied Motion Technologies Inc.

(Name of Registrant as Specified In Its Charter)

 

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

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No fee required.

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Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
  (1) Title of each class of securities to which transaction applies:
         
  (2) Aggregate number of securities to which transaction applies:
         
  (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
         
  (4) Proposed maximum aggregate value of transaction:
         
  (5) Total fee paid:
         

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Fee paid previously with preliminary materials.

o

 

Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

 

 

(1)

 

Amount Previously Paid:
        
 
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Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

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GRAPHIC

ALLIED MOTION TECHNOLOGIES INC.
23 Inverness Way East, Suite 150
Englewood, Colorado 80112

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON MAY 12, 20092011

To the Shareholders of
Allied Motion Technologies Inc.:

        You are hereby notified that the 20092011 Annual Meeting of Shareholders of Allied Motion Technologies Inc. (the "Company") will be held on Tuesday,Thursday, May 12, 20092011 at 2:00 p.m. (Mountain Time) at the Inverness Hotel and Conference Center, 200 Inverness Drive West, Englewood, CO 80112. At this meeting, the shareholders will be asked to act on the following matters:

        Only shareholders of record at the close of business on March 17, 200916, 2011 are entitled to notice of and to vote at the 20092011 Annual Meeting and any adjournment thereof.

        The Board of Directors of the Company extends a cordial invitation to all shareholders to attend the 20092011 Annual Meeting, as it is important that your shares be represented at the meeting. Even if you plan to attend the Annual Meeting, you are strongly encouraged to mark, date, sign and mail the enclosed proxy in the return envelope provided as promptly as possible.

        You may revoke        If your proxy by following the procedures set forthshares are held in the accompanying proxy statement. Ifstreet name and YOU do not vote your shares on Proposal One (Election of Directors), your broker or other nominee can no longer vote them for you are unable to attend,and your written proxyshares will assure that your vote is counted.remain unvoted.THEREFORE, IT IS VERY IMPORTANT THAT YOU VOTE YOUR SHARES FOR ALL PROPOSALS.

  By Order of the Board of Directors

 

 

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Susan M. Chiarmonte
Secretary

DATED: March 20, 200922, 2011

Important Notice Regarding the Internet Availability of Proxy Materials for the Annual Meeting of Shareholders to be Held on May 12, 2009:Materials: This Proxy Statement and the Company's Annual Report are available on the Internet at https://materials.proxyvote.com/019330.

THIS IS AN IMPORTANT MEETING. ALL SHAREHOLDERS ARE URGED TO VOTE BY SIGNING, DATING AND RETURNING THE ENCLOSED PROXY IN THE ENCLOSED ENVELOPE TO WHICH NO POSTAGE NEED BE AFFIXED IF MAILED IN THE UNITED STATES.VOTE.


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 Page

QUESTIONS AND ANSWERS ABOUT THE 20092011 ANNUAL MEETING

 1
 

Why did I receive this proxy?

 1
 

Who is entitled to vote?

 1
 

What is the quorum for the Annual Meeting?

 1
 

How many votes do I have?

 1
 

HowWhat is the difference between a shareholder of record and a beneficial owner of shares held in street name?

1

If I am a shareholder of record of Common Stock, how do I vote?

 1
 

HowIf I am a beneficial owner of shares held in street name, how do I vote my shares that are held by my broker?vote?

 12
 

What am I voting on?

 12
 

Will there be any other items of business on the agenda?

 2
 

How many votes are required to act on the proposals?

 2
 

How are votes counted?

 2
 

What happens if I return my proxy card without voting on all proposals?

 23
 

Can I change my vote after I return my proxy card?

 23
 

Will anyone contact me regarding this vote?

 23
 

Who has paid for this proxy solicitation?

 3
 

May shareholders ask questions at the Annual Meeting?

 3
 

How can I obtain a copy of this year's Annual Report on Form 10-K?

 3
 

What does it mean if I receive more than one proxy card?

 34
 

When was this proxy statement mailed?

 34
 

Can I find additional information on the Company's website?

 34

PROPOSAL ONE: ELECTION OF DIRECTORS

 4
 

Nominees for Election as Directors

 4

Nominating Procedures

6

Board Leadership Structure

6
 

Independent Directors

 57

Risk Oversight

7

Director Stock Ownership Policy

7

BOARD COMMITTEES AND MEETINGS

 57
 

Audit Committee

 68
 

Compensation Committee

 68
 

Governance and Nominating Committee

 68
 

Board Attendance at Meetings

 78
 

Shareholder Communication With the Board

 78
 

Audit Committee Report

 79

EXECUTIVE COMPENSATION

 810
 

Executive Officers

 810
 

Compensation of Executive Officers

 910
 

Employment Agreements With Certain Named Executive Officers

 1011

Consulting Agreement

13
 

Change in Control Agreements

 1113
 

Outstanding Equity Awards at 20082010 Fiscal Year End

 1214
 

Option Exercises and Stock Vested in 20082010

 1214
 

Director Compensation for 20082010

 1315

OWNERSHIP OF COMPANY STOCK

 1416
 

Security Ownership of Certain Beneficial Owners

 1416
 

Security Ownership of Management and Directors

 1517

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Section 16(a) Beneficial Ownership Reporting Compliance

 1618

PROPOSAL TWO: RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 1618

OTHER MATTERS

 1719

SHAREHOLDER PROPOSALS FOR THE 20092012 ANNUAL MEETING

 1720
 

Proposals for the Company's Proxy Material

 1720
 

Proposals to be Introduced at the Annual Meeting but not Intended to be Included in the Company's Proxy Material

 1720

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GRAPHIC

PROXY STATEMENT


QUESTIONS AND ANSWERS
ABOUT THE 20092011 ANNUAL MEETING

Why did I receive this proxy?

        The Board of Directors of Allied Motion Technologies Inc. (the "Company") is soliciting proxies to be voted at the Annual Meeting of Shareholders. The Annual Meeting will be held Tuesday,Thursday, May 12, 2009,2011, at 2:00 p.m. (Mountain Time) at the Inverness Hotel and Conference Center, 200 Inverness Drive West, Englewood, CO 80112. This proxy statement summarizes the information you need to know to vote by proxy or in person at the Annual Meeting. You do not need to attend the Annual Meeting in person in order to vote.


Who is entitled to vote?

        All shareholders of record as of the close of business on Tuesday,Wednesday, March 17, 200916, 2011 (the "Record Date") are entitled to vote at the Annual Meeting.


What is the quorum for the Annual Meeting?

        A quorum at the Annual Meeting will consist of a majority of the votes entitled to be cast by the holders of all shares of Common Stock outstanding.outstanding on the Record Date. No business may be conducted at the Annual Meeting if a quorum is not present. Broker non-votes (shares held in street name for which the broker indicates that instructions have not been received from the beneficial owners or other persons entitled to vote, and the broker does not have discretionary voting authority)vote) and abstentions will be counted as shares present in determining whether a quorum is present. As of the Record Date, 7,578,6948,417,636 shares of Common Stock were issued and outstanding.


How many votes do I have?

        Each share of Common Stock outstanding on the Record Date is entitled to one vote on each item submitted to you for consideration.


HowWhat is the difference between a shareholder of record and a beneficial owner of shares held in street name?

        Shareholder of Record.    If your shares are registered directly in your name with the Company's transfer agent, American Stock Transfer & Trust Company, you are considered the shareholder of record with respect to those shares.

        Beneficial Owner of Shares Held in Street Name.    If your shares are held in an account at a brokerage firm, bank, broker-dealer or other similar organization, then you are the beneficial owner of shares held in "street name." The organization holding your account is considered the shareholder of record for purposes of voting at the Annual Meeting. As a beneficial owner, you have the right to direct that organization on how to vote the shares held in your account.


If I am a shareholder of record of Common Stock, how do I vote?

in the manner you


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directed. You may also vote your shares in person at the Annual Meeting. If you are a shareholder of record, you may request a ballot at the Annual Meeting.


HowIf I am a beneficial owner of shares held in street name, how do I vote my shares that are held by my broker?vote?

        If you haveare the beneficial owner of shares held by a broker,in street name, you may instruct your brokerwill receive instructions from the brokerage firm, bank, broker-dealer or other similar organization (the "record holder") that must be followed for the record holder to vote your shares per your instructions. You may complete and return the voting instruction form in the self-addressed postage paid envelope provided, or you may vote 24 hours a day via the internet or telephone by following the instructions on the enclosed vote instruction form.

        If you hold your shares in street name and do not instruct your bank or broker how to vote in the election of directors, no votes will be cast on your behalf. Your bank or broker will, however, continue to have discretion to vote any uninstructed shares on the appointment of EKS&H (Proposal Two). Please ensure that you complete the broker providesvoting instruction card sent by your bank or broker.

        If your shares are held in street name and you wish to you.vote in person at the Annual Meeting, you must obtain a proxy issued in your name from the record holder and bring it with you to the meeting. We recommend that you vote your shares in advance as described above so that your vote will be counted if you later decide not to attend the Annual Meeting.


What am I voting on?

        You will be voting on the following proposals:


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Will there be any other items of business on the agenda?

        We do not expect any other items of business because the deadline for shareholder proposals and nominations has passed. Nonetheless, in case there is an unforeseen need, your proxy gives discretionary authority to Delwin D. Hock and Richard D. Smith with respect to any other matters that might be brought before the Annual Meeting. Those persons intend to vote that proxy in accordance with their best judgment.


How many votes are required to act on the proposals?

        The holder of each outstanding share of Common Stock is entitled to one vote for each share of Common Stock on each matter submitted to a vote at a meeting of shareholders.

        Pursuant to our Amended and Restated Articles of Incorporation and Bylaws, directors will be elected by the affirmative vote of the holders of two-thirdsmajority of the shares of Common Stock entitledvotes cast with respect to vote at the Annual Meeting with each share being voted for as many individuals as there are directors to be elected and for whose election the share is entitled to vote.such director's election.

        Ratification of the appointment of EKS&H as the Company's independent registered public accounting firm for the 20092011 fiscal year requires the affirmative vote of a majority of the votes cast on the proposal.


How are votes counted?

        Since the election of directors requires the approving vote to be measured against all shares of Common Stock entitled to vote, an abstention and withholding authority from that vote is the equivalent of a vote against the election of the nominated director.

For purposes of Proposal Two,each proposal, abstentions and broker non-votes, if any, will not be counted as affirmative or negative invotes cast and will have no effect on the result of the vote, although they will be considered present for the purpose of determining the numberpresence of shares voted.a quorum.


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What happens if I return my proxy card without voting on all proposals?

        When the proxy is properly executed and returned, the shares it represents will be voted at the Annual Meeting in accordance with your directions. If the signed card is returned with no direction on a proposal, the proxy will be voted in favor of (FOR) Proposals One and Two.with the Board's recommendations.


Can I change my vote after I return my proxy card?

        You can revoke your proxy and change your vote at any time prior to the voting thereof at the Annual Meeting. You can do this by:

        If your shares are held by a nominee and you seek to vote shares in person at the Annual Meeting, you must bring to the Annual Meeting a written statement from the nominee confirming the shareholder's beneficial ownership of a stated number of shares and that such shares have not been voted by the nominee. Your attendance at the Annual Meeting will not in itself revoke your proxy.


Will anyone contact me regarding this vote?

        Solicitation of proxies for use at the Annual Meeting may be made in person or by mail, telephone or telegram, by directors, officers and regular employees of the Company. Such persons will receive no special compensation for any solicitation activities. In addition, we have retained the services of D.F.


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King & Co., Inc. to aid in the solicitation of proxies in person, by mail or telephone. The costs are not expected to exceed $6,500 plus expenses. We will request banking institutions, brokerage firms, custodians, trustees, nominees and fiduciaries to forward solicitation materials to the beneficial owners of Common Stock held of record by such entities, and we will, upon the request of such record holders, reimburse reasonable forwarding expenses.


Who has paid for this proxy solicitation?

        We have paid the entire expense of this proxy statement and any additional materials furnished to shareholders.


May shareholders ask questions at the Annual Meeting?

        Yes. There will be time allotted at the end of the meeting when Company representatives will answer questions from the floor.


How can I obtain a copy of this year's Annual Report on Form 10-K?

        A copy of the Company's 20082010 Annual Report to Shareholders, including financial statements for the fiscal year ended December 31, 2008,2010, accompanies this Proxy Statement. The Annual Report, however, is not part of the proxy solicitation material. A copy of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") may be obtained free of charge by writing to Allied Motion Technologies Inc., 23 Inverness Way East, Suite 150, Englewood, Colorado 80112, Attention: Secretary or by accessing the "SEC Filings" section of the Company's website atwww.alliedmotion.com. www.alliedmotion.com. In addition, the Proxy Statement and Annual Report are available on the internet athttps://materials.proxyvote.com/019330019330.


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What does it mean if I receive more than one proxy card?

        It means that you have multiple accounts at the transfer agent or with stockbrokers. Please complete and return allALL proxy cards to ensure that all your shares are voted.


When was this proxy statement mailed?

        This proxy statement, the enclosed proxy card and the Annual Report were mailed to shareholders beginning on or about March 24, 2009.25, 2011.


Can I find additional information on the Company's website?

        Yes. Our website is located atwww.alliedmotion.com. www.alliedmotion.com. Although the information contained on our website is not part of this proxy statement, you can view additional information on the website, such as our code of ethics, corporate governance principles, charters of board committees and reports that we file with the SEC. A copy of our code of ethics, corporate governance principles and each of the charters of our board committees may be obtained free of charge by writing to Allied Motion Technologies Inc., 23 Inverness Way East, Suite 150, Englewood, Colorado 80112, Attention: Secretary.


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PROPOSAL ONE: ELECTION OF DIRECTORS

        Our Articles of Incorporation and Bylaws provide for a Board consisting of not less than three and not more than nine persons, as such number is determined by the Board of Directors, all of whom will be elected annually to serve until the next annual meeting of shareholders and until their successors are elected and qualified, or until the Director resigns or is otherwise removed.

        Our Board of Directors currently consists of Delwin D. Hock, Graydon D. Hubbard,Gerald J. (Bud) Laber, George J. Pilmanis, Michel M. Robert, S.R. (Rollie) Heath, Jr., Richard D. Smith and Richard S. Warzala. Based on the recommendation of our Governance and Nominating Committee, all incumbent directors have been nominated to succeed themselves as directors. Graydon D. Hubbard, who has served as a director since 1991, retired from the Company's Board of Directors effective January 1, 2011. Mr. Hubbard has not expressed any disagreement with the Company on any matter relating to the Company's operations, policies or practices. The affirmative vote of the holders of two-thirdsa majority of the shares of Common Stock entitled to vote at the Annual Meetingvotes cast is required for the election of directors. If the number of votes required for the election of directors is not received, directors will continue in office until the next annual meeting or until resignation or removal. Unless authority is withheld,instructed otherwise, it is intended that the shares represented by proxy at the Annual Meeting will be voted in favor of the seven nominees named below. All nominees have agreed to serve if elected.

        If, at the time of the Annual Meeting, any nominee is unable or declines to serve, the discretionary authority provided in the proxy may be exercised to vote for a substitute or substitutes. The Board of Directors has no reason to believe that any substitute nominee or nominees will be required.

        THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" THE ELECTION OF EACH OF THE NOMINEES.


Nominees for Election as Directors

        The following provides certainbiography of each director nominee below contains information regarding that person's principal occupation, positions held with the nominees for electionCompany, service as a director, business experience, other director positions currently held or held at any time during the past five years, involvement in certain legal or administrative proceeding, if applicable, and the experiences, qualifications, attributes or skills that caused our Governance and Nominating Committee to conclude that the person should serve as a member of our Board of Directors. Each individual's name, position


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S.R. (Rollie) Heath, Jr., age 73—Mr. Heath has served as a director of the Company since August 2007. He is a recognized civic and business leader in Colorado, currently serving as State Senator from District 18. He is also founding partner of NorthStone Group, a company that advises and educates boards of directors and executive teams on leadership development and decision making. Mr. Heath has extensive knowledge of, and experience with, the Companymanufacturing industry. Mr. Heath spent 17 years in senior management with Johns Manville Corporation and principal occupationlater became the chairman, CEO and business experience for the past five years is provided and, unless otherwise stated, each nominee has held the position indicated for at least the past five years.a co-founder of Ponderosa Industries, a precision metal parts manufacturing company.

        Delwin D. Hock, age 74—76—Mr. Hock has served as a director of the Company since February 1997 and aswas Chairman of the Board of Directors sincefrom May 2005.2005 to May 2009. In May 2009, Mr. Hock was appointed Lead Director of the Independent Directors. Mr. Hock has many years of executive management experience. He retired from his position as Chief Executive Officer of Public Service Company of Colorado, a gas and electric utility, in January 1996 and as Chairman of the Board of Directors of that company in July 1997. From September 1962 to January 1996, Mr. Hock held various management positions at Public Service Company.

        Graydon D. HubbardGerald J. (Bud) Laber, age 75—67—Mr. Hubbard has servedLaber was appointed as a director of the Company on November 3, 2010. He has been a private investor since 1991. He is a2000, when he retired certified public accountant and was a partnerafter 33 years of service with Arthur Andersen LLP,LLP. He holds a degree from the Company's former independent public accountants, in its Denver office for more than five years prior to his retirement in November 1989. Since September 2003, he has served as a directorUniversity of Whiting Petroleum Corporation, chairman of its audit committeeSouth Dakota and is a membercertified public accountant. Mr. Laber is currently on the board of its compensation committee. Whitingdirectors and chair of the audit committees of Smart Balance Inc., Scott's Liquid Gold and Qualmark Corporation and is an independent oil and gas company engaged in acquisition, exploitation, exploration and development.the president of the Catholic Foundation of Northern Colorado.

        George J. Pilmanis, age 71—72—Mr. Pilmanis has served as a director of the Company since 1993. Mr. Pilmanis has an extensive background in international matters and business development. For more than five years prior to his retirement in April 2003 he was chairman and president of Balriga International Corp., a privately held company concerned with business development in the Far East and Eastern Europe. In 2001 and 2002 he also served as Executive Director of the Foreign Investors Council in Latvia.

        Michel M. Robert, age 67—69—Mr. Robert has served as a director of the Company since July 2004. Mr. Robert has many years of experience in guiding various manufacturing and public companies in developing their corporate strategy, which includes identifying their driving force and critical issues, as well as deploying strategies to address the issues. He founded Decision Processes International, Inc. (DPI) in 1980 to provide consulting services in the field of strategy development and deployment. He is currently Chief Executive Officer and President of DPI.


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Mr. Robert has been published in a wide array of business magazines and journals and has authored several books.

S.R. (Rollie) Heath, Jr., age 71—Mr. Heath has served as a director of the Company since August 2007. He is a recognized civic and business leader in Colorado, currently serving as State Senator from District 18. He is also founding partner of NorthStone Group, a company that advises and educates boards of directors and executive teams on leadership development and decision making. Mr. Heath spent 17 years in senior management with Johns Manville Corporation and later became the chairman, CEO and a co-founder of Ponderosa Industries, a precision metal parts manufacturing company.

        Richard D. Smith, age 61—63—Mr. Smith has served as a director of the Company since August 1996.1996 and as Executive Chairman of the Board of Directors since May 2009. Mr. Smith has broad executive management experience with the Company and extensive knowledge and experience in accounting and financial matters. He has served as Chief Executive Officer sincefrom August 13, 1998.1998 until May 2009. He served as President from August 13, 1998 until May 1, 2002. He was Executive Vice President from August 1993 until August 1998. Mr. Smith served as Vice-President of Finance from June 1983 to August 1993. He has served as Chief Financial Officer since June 1983. Pursuant to Mr. Smith's employment agreement, as long as he is the Chief ExecutiveFinancial Officer of the Company and is willing to serve, the Board of Directors will nominate him for election to the Board.

        Richard S. Warzala, age 55—57—Mr. Warzala has served as director of the Company since August 2006. Mr. Warzala has strong management and technical backgrounds in the motion control industry. In May 2009, He was appointed President and Chief Executive Officer. Prior to May 2009 Mr. Warzala was President and Chief Operating Officer of the Company insince May 2002 and has been employed by the Company since October 2001. In 1993, he was named President of API Motion, a subsidiary of American Precision Industries Inc., and continued as President until 1999, when it was acquired by


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Danaher Corporation where he served as President of the Motion Components Group until 2001. From 1976 to 1993, he held various management positions at American Precision Industries, Inc.

        Upon re-election Pursuant to Mr. Warzala's employment agreement, as long as he is the President and Chief Executive Officer of Messrs. Hock, Smiththe Company and Warzala,is willing to serve, the Board of Directors and Executive leadership ofwill nominate him for election to the Company will change. Mr. Smith will transition to Executive Chairman of the Board and relinquish his position of Chief Executive Officer. Mr. Warzala will assume the role of Chief Executive Officer and Mr. Hock will become the Lead Director of the Independent Directors of the Company.


Independent Directors

        Under the corporate governance standards of the Nasdaq Global Market, at least a majority of our Directors, and, except in limited circumstances, all of the members of our Audit Committee, Compensation Committee and Governance and Nominating Committee, must meet the test of "independence" as defined by Nasdaq. The Nasdaq standards provide that to qualify as an "independent" director, in addition to satisfying certain bright-line criteria, the Board of Directors must affirmatively determine that a director has no material relationship with the Company. The Board of Directors has determined that each current director, other than Mr. Smith, the Company's Chief Executive Officer and Chief Financial Officer and Mr. Warzala, the Company's President and Chief Operating Officer, satisfies the bright-line criteria and that none has a relationship with the Company that would interfere with such person's ability to exercise independent judgment as a member of our Board.


BOARD COMMITTEES AND MEETINGSNominating Procedures

        The Board of Directors has a standing Audit Committee, Compensation Committee and Governance and Nominating Committees. Each member of each of these committees is "independent" as that term is defined in the Nasdaq listing standards. The Board has adopted a written charter for each of these committees, which is available on our web site atwww.alliedmotion.com.


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Audit Committee

        The Audit Committee of our Board of Directors consists of Messrs. Hubbard (Chairman), Hock and Pilmanis. The Audit Committee oversees the Company's financial reporting on behalf of the Board and is responsible for the appointment, replacement, compensation and oversight of the work of the Company's independent auditors. The Audit Committee also reviews the Company's annual and quarterly reports filed with the SEC. The Audit Committee held four meetings during 2008. Each member of the Audit Committee meets the current independence and experience requirements of Nasdaq and the SEC. Mr. Hubbard has been designated as the Company's "Audit Committee financial expert" in accordance with the SEC rules and regulations and qualifies as a financially sophisticated audit committee member under the Nasdaq listing standards. See "Report of the Audit Committee" below.


Compensation Committee

        The Compensation Committee of our Board of Directors currently consists of Messrs. Pilmanis (Chairman), Hock and Hubbard. The Compensation Committee has the principal responsibility to make recommendations to the Board of Directors concerning the compensation of the Company's management employees including its executive officers. The Compensation Committee also reviews, approves and recommends to the Board for their approval all awards granted under the Company's stock incentive plan and performs other functions regarding compensation as the Board may delegate. The Compensation Committee met three times during 2008.


Governance and Nominating Committee

        The Governance and Nominating Committee of our Board of Directors currently consists of Messrs. Hock (Chairman), Heath and Hubbard. The Governance and Nominating Committee met four times during 2008. The Governance and Nominating Committee (i) monitors and oversees matters of corporate governance, including the evaluation of Board performance and processes and the "independence" of directors, and (ii) selects, evaluates and recommends to the Board qualified candidates for election or appointment to the Board and each Committee of the Board.

        The Board of Directors will consider nominees recommended by shareholders. Any such person will be evaluated in the same manner as any other potential nominee for director. Any suggestion for a nominee for director by a shareholder should be sent to the Company's Secretary at 23 Inverness Way East, Suite 150, Englewood, Colorado 80112, within the time periods set forth under "Shareholder Proposals for the 2010 Annual Meeting."

        The Governance and Nominating Committee identifies nominees by first evaluating the current members of the Board of Directors willing to continue in service. Current members of the Board with skills and experience that are relevant to the Company's business and who are willing to continue in service are considered for re-nomination. If any member of the Board does not wish to continue in service, or if the Governance and Nominating Committee decides not to nominate a member for re-election, the Governance and Nominating Committee first considers the appropriateness of the size of the board. If the Governance and Nominating Committee determines the board seat should be retained and a vacancy exists, the Governance and Nominating Committee considers factors that it deems are in the best interests of the Company and its shareholders in identifying and evaluating a new nominee. Skills and characteristics that are considered include judgment, accountability, integrity, experience, technical skills, diversity, financial literacy, mature confidence, high performance standards, time, other board appointments, industry knowledge, and degree of independence from management.

        In identifying suitable candidates for nomination as a director, the Governance and Nominating Committee will consider the needs of the Board and the range of skills and characteristics required for effective functioning of the Board. In evaluating such skills and characteristics, the Governance and


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Nominating Committee takes into consideration such factors as it deems appropriate, including those included in the Corporate Governance Principles, which are available at www.alliedmotion.com.

        While we do not have a formal policy or guidelines regarding diversity of membership of our Board of Directors, our Corporate Governance Principles recognize the value of having a Board that encompasses a broad range of skills, expertise, contacts, industry knowledge and diversity of opinion, our Board has not attempted to define "diversity," or otherwise require that the composition of our Board include individuals from any particular background or who possess specific attributes. The Governance and Nominating Committee will continue to consider whether it would be appropriate to adopt a policy or guidelines regarding board diversity or define diversity as it relates to the composition of our Board of Directors.

        The Board of Directors will consider nominees recommended by shareholders. Any such person will be evaluated in the same manner as any other potential nominee for director. Any suggestion for a nominee for director by a shareholder should be sent to the Company's Secretary at 23 Inverness Way East, Suite 150, Englewood, Colorado 80112, within the time periods set forth under "Shareholder Proposals for the 2012 Annual Meeting."


www.alliedmotion.comBoard Leadership Structure

        The Board has established the position of Lead Director to assist in overseeing the affairs of the Board. The Lead Director is an independent director, currently Mr. Hock, appointed by the Board. The Lead Director's primary responsibilities include providing input to the Executive Chairman regarding agendas for Board and Committee meetings and presiding at all executive sessions of the independent directors. The Board will periodically review its leadership structure and determine if other structures might be appropriate.

        The Board has appointed Mr. Smith as Executive Chairman of the Board. Mr. Smith is also Chief Financial Officer of the Company and thus is not an independent director. The Board believes that having an officer as executive chairman allows him to leverage the substantial amount of information gained from both these roles to lead the Company most effectively. The Board believes that the


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appointment of an independent Lead Director provides the independent oversight with significant input into corporate governance while maintaining the Company's historical practice of having an Executive Officer also serve as Chairman.


Independent Directors

        Under the corporate governance standards of the Nasdaq Global Market, at least a majority of our Directors, and, except in limited circumstances, all of the members of our Audit Committee, Compensation Committee and Governance and Nominating Committee, must meet the test of "independence" as defined by Nasdaq. The Nasdaq standards provide that to qualify as an "independent" director, in addition to satisfying certain bright-line criteria, the Board of Directors must affirmatively determine that a director has no material relationship with the Company. The Board of Directors has determined that each current director, other than Mr. Warzala, the Company's President and Chief Executive Officer and Mr. Smith, the Company's Chief Financial Officer, satisfies the bright-line criteria and that none has a relationship with the Company that would interfere with such person's ability to exercise independent judgment as a member of our Board.


Risk Oversight

        The Board of Directors oversees our risk management process. This oversight is primarily accomplished through the Board's committees and management's reporting processes. We do not have a formal risk committee; however, our Audit Committee focuses on risk related to accounting, internal controls, financial and tax reporting, and also assesses economic and business risks. Our Compensation Committee identifies and oversees risks associated with our executive compensation policies and practices, and our Governance and Nominating Committee identifies and oversees risks associated with director independence, related party transactions, the implementation of corporate governance policies and also monitors compliance with ethical standards.


Director Stock Ownership Policy

        The Board of Directors believes it is generally desirable for directors to own shares of the Company's stock. By becoming equity owners, the outside directors assume a personal stake in the success or failure of the Company and it aligns their financial interests with the long-term shareholders of the Company. Pursuant to the Director Stock Ownership Policy, which was adopted in 2010, new non-employee directors are to invest the greater of $50,000 or two and one-half times the cash portion of the Board's then annual retainer in the purchase of common stock of the Company (the "Guideline Investment"). For current directors at the time the policy was adopted, the Guideline Investment was set at $50,000. A new non-employee director is allowed a grace period to meet the Guideline Investment in full, from the date of initial election or appointment to the Board through the fifth anniversary of such election or appointment (the "Grace Period"). For current non-employee directors, the five-year Grace Period began as of the original effected date of the Policy. During 2010, a Non-Employee Director Stock in Lieu of Cash Retainer Plan was also adopted. Pursuant to the Plan, each non-employee director may elect to forego receipt of all or a portion of the annual cash retainer in exchange for newly issued common stock.


BOARD COMMITTEES AND MEETINGS

        The Board of Directors has a standing Audit Committee, Compensation Committee and Governance and Nominating Committee. Each member of each of these committees is "independent" as that term is defined in the Nasdaq listing standards. The Board has adopted a written charter for each of these committees, which is available on our web site at www.alliedmotion.com.


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Audit Committee

        The Audit Committee of our Board of Directors oversees the Company's financial reporting on behalf of the Board and is responsible for the appointment, replacement, compensation and oversight of the work of the Company's independent auditors. The Audit Committee also reviews the Company's annual and quarterly reports filed with the SEC. The Audit Committee held four meetings during 2010 and consisted of Messrs. Hubbard (Chairman), Hock and Pilmanis. Following Mr. Hubbard's retirement effective January 1, 2011, the Audit Committee was restructured and currently consists of Messrs. Laber (Chairman), Hock and Heath. Each member of the Audit Committee meets the current independence and experience requirements of Nasdaq and the SEC. Mr. Laber has been designated as the Company's "Audit Committee financial expert" in accordance with the SEC rules and regulations and qualifies as a financially sophisticated audit committee member under the Nasdaq listing standards. See "Report of the Audit Committee" below.


Compensation Committee

        The Compensation Committee of our Board of Directors currently consists of Messrs. Pilmanis (Chairman), Hock and Laber. The Compensation Committee was restructured following Mr. Hubbard's retirement with Mr. Laber filling the position vacated by Mr. Hubbard. The Compensation Committee has the principal responsibility to make recommendations to the Board of Directors concerning the compensation of the Company's management employees including its executive officers. The Compensation Committee also reviews, approves and recommends to the Board for their approval all awards granted under the Company's stock incentive plan and performs other functions regarding compensation as the Board may delegate. The Compensation Committee met three times during 2010.


Governance and Nominating Committee

        The Governance and Nominating Committee (i) monitors and oversees matters of corporate governance, including the evaluation of Board performance and processes and the "independence" of directors, and (ii) selects, evaluates and recommends to the Board qualified candidates for election or appointment to the Board and each Committee of the Board. The Governance and Nominating Committee of our Board of Directors met four times during 2010 and consisted of Messrs. Hock (Chairman), Heath and Hubbard. Effective January 1, 2011, Mr. Pilmanis has replaced Mr. Hubbard on the Governance and Nominating Committee.


Board Attendance at Meetings

        The Board of Directors held six meetings in 2010. Our Independent Directors meet in executive session without management directors or management present. These sessions generally take place prior to or following regularly scheduled board meetings. The directors met in such sessions four meetingstimes during 2008.2010. Each director attended 100%at least 75% of the total number of meetings of the Board of Directors and meetings held by all committees of the Board of Directors on which he served. Our Corporate Governance Principles provide that all directors are expected to regularly attend all meetings of the Board and the Board committees on which he serves. In addition, each director is expected to attend the Annual Meeting of Shareholders. In 2008,2010, the Annual Meeting of Shareholders was attended by all of the directors.


Shareholder Communication With the Board

        We provide an informal process for shareholders to send communications to the Board of Directors. Shareholders who wish to contact the Board of Directors or any of its members may do so in writing to Allied Motion Technologies Inc., 23 Inverness Way East, Suite 150, Englewood, Colorado 80112. Correspondence directed to an individual board member will be referred to that member.


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Correspondence not directed to a particular board member will be referred to the Executive Chairman of the Board.


Audit Committee Report

        The following Report of the Audit Committee does not constitute soliciting material and should not be deemed filed or incorporated by reference into any other filing by the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934 except to the extent the Company specifically incorporates this Report by reference therein.

        Management is responsible for the Company's financial statements and reporting process. The Company's independent registered public accounting firm, Ehrhardt Keefe Steiner & Hottman PC (EKS&H) is responsible for performing an independent audit of the Company's annual financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States)("PCAOB") and for issuing a report on those statements.

        As members of the Audit Committee, our work is guided by our Audit Committee Charter which is reviewed annually by the Board of Directors. We have completed all Charter tasks scheduled to be performed in 20082010 prior to year-end and all Charter tasks scheduled to be performed in 20092011 prior to the filing of this proxy statement. Our work included, among other procedures:

        (1)   We pre-approved audit and permitted non-audit services of the Company's independent auditors.

        (2)   We met with management and the independent auditors on a quarterly basis to discuss financial statements and related reports and to review significant accounting and reporting matters.

        (3)   We discussed with the independent auditors their independence and the matters required to be discussed by Statement on Auditing Standards 61, "Communications with Audit Committees," as amended. We received the written disclosures from the independent auditors required by PCAOB Rule 3526, "Communication with Audit Committees Concerning Independence."

        (4)   Prior to their publication, we reviewed and discussed with management and the independent auditors the Company's December 31, 2008,2010, audited financial statements, the related audit report, and the applicable management's discussion and analysis.


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        Based on the work referred to above, we recommended to the Board of Directors that the Board approve the inclusion of the Company's audited financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008,2010, for filing with the SEC.

  Submitted by:

 

 

THE AUDIT COMMITTEE

 

 

Graydon D. Hubbard,Gerald J. (Bud) Laber, Chairman
Delwin D. Hock
George J. PilmanisS.R. (Rollie) Heath

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EXECUTIVE COMPENSATION

Executive Officers

        The following provides certain information regarding our executive officers. Each individual's name and position with the Company is indicated. In addition, the principal occupation and business experience for the past five years is provided for each officer. There are no family relationships between any of our directors or executive officers.

        Richard D. Smith, age 61—Mr. Smith has served as a director of the Company since August 1996. He has served as Chief Executive Officer since August 13, 1998. He served as President from August 13, 1998 until May 1, 2002. He was Executive Vice President from August 1993 until August 1998. Mr. Smith served as Vice-President of Finance from June 1983 to August 1993. He has served as Chief Financial Officer since June 1983.

Richard S. Warzala, age 55—57—Mr. Warzala has served as director of the Company since August 2006. HeIn May 2009, he was appointed President and Chief Executive Officer. Prior to May 2009, Mr. Warzala was President and Chief Operating Officer of the Company insince May 2002 and has been employed by the Company since October 2001. In 1993, he was named President of API Motion, a subsidiary of American Precision Industries Inc., and continued as President until 1999, when it was acquired by Danaher Corporation where he served as President of the Motion Components Group until 2001. From 1976 to 1993, he held various management positions at American Precision Industries, Inc.

        Richard D. Smith, age 63—Mr. Smith has served as a director of the Company since August 1996 and as Executive Chairman of the Board of Directors since May 2009. He served as Chief Executive Officer from August 13, 1998 until May 12, 2009. He served as President from August 13, 1998 until May 1, 2002. He was Executive Vice President from August 1993 until August 1998. Mr. Smith served as Vice-President of Finance from June 1983 to August 1993. He has served as Chief Financial Officer since June 1983.

Kenneth R. Wyman, age 66—68—Mr. Wyman was named Vice President of Marketing of the Company in February 2003. He was designated as an executive officer in February 2005. From 2000 to 2002, he was Vice President of Marketing for the Motion Components Group of Danaher Corporation. In 1995, Mr. Wyman joined API Motion as Director of Marketing, and later was named Vice President of Marketing.


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Compensation of Executive Officers

        The following table presents information relating to total compensation of the Executive Officers of the Company (the "Named Officers") for the fiscal years ended December 31, 20082010 and 2007.2009.

Name and Principal Position
 Year Salary Stock
Awards(1)
 Non-Equity
Incentive Plan
Compensation
 All Other
Compensation
 Total 

Richard D. Smith

  2008 $282,500 $74,040 $251,862(2)$44,344(3)$652,746 

Chief Executive Officer

  2007 $266,666 $58,730 $201,565 $42,501 $569,462 

and Chief Financial Officer

                   

Richard S. Warzala

  
2008
 
$

272,500
 
$

74,040
 
$

243,747

(4)

$

41,487

(5)

$

631,774
 

President and Chief Operating

  2007 $256,666 $58,730 $194,007 $43,505 $552,908 

Officer

                   

Kenneth R. Wyman

  
2008
 
$

139,583
 
$

4,720
 
$

56,635

(6)

$

13,018

(7)

$

213,956
 

Vice President of Marketing

  2007 $137,083 $2,865 $51,809 $11,883 $203,640 

Name and Principal Position
 Year Salary Stock
Awards(1)
 Non-Equity
Incentive Plan
Compensation
 All Other
Compensation
 Total 

Richard S. Warzala

  2010 $319,996 $506,687 $556,948(2)$48,557(3)$1,432,188 

President and Chief

  2009 $282,962 $24,200 $ $38,301 $345,463 

Executive Officer

                   

Richard D. Smith

  
2010
 
$

285,000
 
$

259,849
 
$

521,823

(4)

$

48,539

(5)

$

1,115,211
 

Chief Financial Officer

  2009 $276,231 $24,200 $ $39,500 $339,931 

Kenneth R. Wyman

  
2010
 
$

134,619
 
$

6,740
 
$

67,115

(6)

$

15,560

(7)

$

224,034
 

Vice President of Marketing

  2009 $127,404 $ $ $12,355 $139,759 

(1)
Represents the proportionate amount of the total grant date fair value of stock awards recognized byon the Company as an expense in 2008 for financial accounting purposes, disregarding for this purposedate of the estimate of forfeitures related to service-based vesting conditions.award. The fair values of these awards and the amounts expensed in 2008 were based on the average closing bid and ask price of the Company's common stock as reported on the Nasdaq Global Market on the date of grant amortized over the vesting period. The awards for which expense is shown in this table include grants made in 2008, as well as awards granted in prior years for which the Company continued to recognize expense in 2008.grant.

(2)
Non-Equity Incentive Plan Compensation for Mr. Warzala for 2010 includes (a) $321,138 pursuant to the Annual Incentive Bonus Plan, which is generally available to all employees of the Company and is payable based upon the achievement of Company performance goals established by the

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(3)
All Other Compensation for Mr. Warzala for 2010 includes (a) fair value of personal use of Company provided automobile of $7,294, as determined with reference to IRS regulations, (b) the Company's contribution of $13,463 to tax-qualified defined contribution plans, (c) the Company paid life insurance premiums of $24,500, and (d) financial planning services of $3,300.

(4)
Non-Equity Incentive Plan Compensation for Mr. Smith for 20082010 includes (a) $229,245$286,013 pursuant to the Annual Incentive Bonus Plan, which is generally available to all employees of the Company and is payable based upon the achievement of Company performance goals established by the Board of Directors and (b) contribution under the Deferred Compensation Plan of $22,617 upon achievement of Company performance goals established by the Board of Directors.

(3)
All Other Compensation for Mr. Smith for 2008 includes (a) fair value of personal use of Company provided automobile of $13,127, as determined with reference to IRS regulations, (b) the Company's contribution of $10,372 to tax-qualified defined contribution plans, and (c) the Company paid life insurance premiums of $20,845.

(4)
Non-Equity Incentive Plan Compensation for Mr. Warzala for 2008 includes (a) $221,130 pursuant to the Annual Incentive Bonus Plan, which is generally available to all employees of the Company and is payable based upon the achievement of Company performance goals established by the Board of Directors and (b) contribution under the Deferred Compensation Plan of $22,617$235,810 upon achievement of Company performance goals established by the Board of Directors.

(5)
All Other Compensation for Mr. WarzalaSmith for 20082010 includes (a) fair value of personal use of Company provided automobile of $4,783,$14,231, as determined with reference to IRS regulations, (b) the Company's contribution of $10,229$13,463 to tax-qualified defined contribution plans and (c) the Company paid life insurance premiums of $22,075, and (d) financial planning services of $4,400.$20,845.

(6)
Non-Equity Incentive Plan Compensation for Mr. Wyman for 20082010 represents amount paid pursuant to the Annual Incentive Bonus Plan, which is generally available to all employees of the Company and is payable based upon the achievement of Company performance goals established by the Board of Directors.


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(7)
All Other Compensation for Mr. Wyman for 20082010 includes (a) auto allowance paid of $6,000, (b) fair value of personal use portion of reimbursed automobile operating expenses of $665,$1,409, as determined with reference to IRS regulations, and (c) the Company's contribution of $6,353$8,151 to tax-qualified defined contribution plans.


Employment Agreements With Certain Named Executive Officers

        The Company has employment agreements with Richard D. Smith, Chief Executive Officer and Chief Financial Officer, and Richard S. Warzala, President and Chief OperatingExecutive Officer, and Richard D. Smith, Chief Financial Officer. The Agreements have an initial term of five years, through 2008,2014, and continue subsequently on a year-to-year basis unless the Company or the officer gives termination notice at least 60 days prior to expiration of the initial or subsequent terms. The Agreements contain the provisions outlined below.

        Base Salary.    The Agreements provide an annual base salary of not less than $235,000$275,000 for Mr. SmithWarzala and $225,000$285,000 for Mr. Warzala,Smith, and may be reviewed annually for increase on a merit basis. Mr. Warzala's salary was increased to $350,000 effective March 1, 2011. Mr. Smith's salary was increased to $285,000 and Mr. Warzala's salary was increased to $275,000$300,000 effective March 1, 2008.2011.

        Annual Incentive Bonus.    Annual incentive bonuses are paid based on achieving performance criteria recommended annually by the Compensation Committee and approved by the Board of Directors. The performance criteria will recognize the overall financial performance of the Company and the improvements made in financial results. The amount of incentive that an executive officer may receive is based upon the following two components: an individual target bonus (which is a percentage of the individual's salary), and the Company's performance based on Economic Value Added (EVA). EVA is defined as net operating profit after taxes less a cost of capital charge. For 2008,2010, the individual target bonus was set at 60% for both Messrs. SmithWarzala and Warzala.Smith. The Company's EVA performance goals are set annually. If the target EVA is achieved, then the target bonus is paid. If the actual EVA achieved falls between the threshold and the target EVA, the bonus awarded is equal to the target bonus multiplied times the prorata percent of the EVA target achieved (0% to 100% of the target bonus amount). If the actual EVA achieved is greater than the target EVA, then the bonus awarded


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will be greater than 100% of the target bonus amount with the bonus being a certain prorata percent of the incremental EVA achieved above the target EVA. There is no cap on the amount of EVA that can be earned.

        For 2008,2010, the Company exceeded performance targets specified at the beginning of 20082010 for EVA. Applying the pre-established bonus formula to the financial performance resulted in bonuses for executive officers of 135%167% of target bonus levels, as includedset forth in the Summary Compensation Table under the heading "Non-EquityNon-Equity Incentive Plan Compensation."Compensation and corresponding notes (2), (4) and (6).

        Long-Term Incentive Compensation.    The Company utilizes stock based awards for long-term incentives. In making its determination regarding the grant of stock based awards, the Board considers, among other things, the Employee's responsibilities and efforts and performance in relation to the business plan and forecast, the relationship between the benefits of Restricted Stock or Stock Options and improving shareholder value, the development and performance of the Company's products in the marketplace and an increase in the trading price per share of the Company's Common Stock. The Board also considers customary business practices and Long-Term Incentive Plan benefits granted in comparison to such benefits provided to other executives in similar positions.

The Board approved grantsa grant of 20,00030,000 shares for botheach of Messrs. Warzala and Smith and Warzala effective March 9, 2009, with 6,667February 23, 2011. Of these shares, vesting10,000 will vest1/3 on each of March 31, 2012, 2013, and 2014, 10,000 will vest if the established performance goal based on 2011 operating profit is achieved and 10,000 will vest if the established performance goal based on operating profit is achieved in any of the four years ending December 31, 2014. If the performance goal for either 2011 or the four year period ending December 31, 2014 is not met, none of the performance based shares will vest.

        Nonqulaified Deferred Compensation.    The Company maintains a Deferred Compensation Plan which provides eligible key employees with the opportunity to defer the receipt of base compensation, bonuses, or a combination thereof, receive an allocation of any discretionary amount contributed to the Plan by the Company and receive an allocation of any performance based contributions by the Company. During 2010, 2011, respectivelyno participants elected to defer any compensation and 6,666 shares vesting March 31, 2012.no discretionary amounts were contributed to the Plan. Performance based contributions are set annually based on performance goals. For 2010, annual performance based contributions for Messrs. Warzala and Smith were based on the Company achieving an 8% return on beginning shareholders' equity. If an 8% return was not achieved, no performance contribution would be awarded. If a return in excess of 8% was achieved, an amount equal to 25% of such excess is contributed equally to Messrs. Warzala and Smith. For 2010, a performance contribution of $235,810 for each of Messrs. Warzala and Smith was earned and contributed to the Plan.

        Other Provisions.    Messrs. SmithWarzala and WarzalaSmith participate in other benefits and perquisites as are generally provided by the Company to its employees. In addition, the Company provides each executive officer with an automobile, personal financial planning, an annual physical examination and with life insurance for which the executive may designate the beneficiaries.

        In the event of termination prior to a change in control, the Agreements provide for continuation of salary, insurance benefits and other bonus prorations or settlements as outlined below.


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        Retirement.    Payments upon retirement would be made pursuant to a retirement arrangement established with the Named Officer's consent, which may provide for the settlement of the Annual Incentive Bonus for the current year.

        Termination for Cause.    Termination for cause payments include salary continuation through the date of termination and benefit continuation until the end of the termination month.


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        Death.    Upon death, salary continues to the end of the month containing the date of death and for three months following. Any proration of the Annual Incentive Bonus is at the Board of Directors' discretion.

        Disability.    In the case of disability, salary is continued until the end of the term of the employment agreement, as adjusted for any compensation payable under any Company paid disability plan, or until long term disability insurance becomes effective. Benefits are continued as generally provided by the Company to its employees in accordance with the Company's disability plan. Any proration of the Annual Incentive Bonus is at the Board of Directors' discretion.

        Involuntary Termination for other than Cause, Retirement, Death or Disability.    Involuntary termination payments include salary continuation through the end of the termination month and for twelve months following termination. For one year following the termination, medical, dental, long-term disability and life insurance benefits equal to the coverage provided to the employee at the time of termination are provided. An amount equal to 90% of the base salary at time of termination is to be paid in lieu of the annual bonus.bonus and an equity award is granted at the discretion of the Board for the fiscal year in which employment is terminated.


Consulting Agreement

        Effective January 4, 2011, the Company entered into a five-year consulting agreement with Mr. Smith that will become effective upon his anticipated retirement as a full time employee of the Company on March 31, 2013. Upon his retirement, Mr. Smith will receive an annual consulting fee and will be available to work part time as an independent contractor on assignments as requested by the Chief Executive Officer. After his retirement, Mr. Smith will continue to serve as a Board Member of the Company as recommended by the Board of Directors and approved by the Company's shareholders.


Change in Control Agreements

        The Company has entered into separate agreements with Messrs. Warzala, Smith Warzala and Wyman, for termination resulting within 90 days prior to or 24 months following a change in control of the Company. The agreements are extended automatically on January 1 of each year to a total term of two years, unless notice of non-renewal is given by the Company not later than the September 30 immediately preceding such January (meaning that notice must be given at least 15 months prior to termination). Under the terms of the agreements, upon termination by the Company (other than for cause as defined in the agreement) or by the executive for good reason (as defined in the agreement), they are entitled to receive a severance payment equal to 2.5 times (one times for Mr. Wyman) the sum of current annual base salary plus the highest amount paid or payable under the Annual Incentive Bonus Plan for any of the three preceding fiscal years, an allocation for incentive compensation for the current year up to the date of termination and a monthly payment for a two year period equal to 25% of the base salary for the individual to acquire insurance benefits. Any payments due under the Long-Term Incentive Payment Plan shall be paid in accordance with the plan provisions. The Company has a similar agreementsagreement (providing one times severance payments) with certainone other key executives.officer. The change in control agreements are applicable to a change in control of the Company or of the subsidiary or division for which the executive is employed and require the key executives to remain in the employ of the Company for a specified period in the event of a potential change in control of the Company and provide employment security to them in the face of pressures to sell the Company or in the event of take-over threats, so that they can devote full time and attention to the Company's efforts free of concern about discharge in the event of a change in control of the Company. The Board of Directors has considered termination of these agreements and determined that the reasons for executing the agreements are valid and concluded that notices of non-renewal would not be in the best interests of the shareholders.


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Outstanding Equity Awards at 20082010 Fiscal Year End

        The following table shows all outstanding equity awards held by the Named Executive Officers as of December 31, 2008.2010.

 
 Option Awards Stock Awards 
Name
 Number of
Securities
Underlying
Unexercised
Options
(#)(1)
 Option
Exercise
Price
($)
 Option
Expiration
Date
 Number of Shares
or Units of Stock
That Have Not
Vested
(#)
 Market Value of
Shares or Units of
Stock That Have
Not Vested
($)(2)
 

Richard D. Smith

  69,300 $4.8300  10/26/2010  29,000(3)$58,000 

  58,750 $3.2000  8/16/2011       

  60,000 $4.2700  4/21/2011       

Richard S. Warzala

  
40,000
 
$

1.7700
  
2/13/2010
  
29,000

(3)

$

58,000
 

  60,000 $4.2700  4/21/2011       

Kenneth R. Wyman

  
30,000
 
$

1.7700
  
2/13/2010
  
1,999

(4)

$

3,998
 

  10,000 $4.7500  2/19/2011       

  10,000 $5.4600  10/28/2011       

 
 Option Awards Stock Awards 
Name
 Number of
Securities
Underlying
Unexercised
Options
(#)(1)
 Option
Exercise
Price
($)
 Option
Expiration
Date
 Number of Shares
or Units of Stock
That Have Not
Vested
(#)
 Market Value of
Shares or Units of
Stock That Have
Not Vested
($)(2)
 

Richard S. Warzala

  60,000 $4.2700  4/21/2011  183,433(3)$1,262,019 

Richard D. Smith

  
60,000
 
$

4.2700
  
4/21/2011
  
83,433

(4)

$

574,019
 

Kenneth R. Wyman

  
10,000
 
$

4.7500
  
2/19/2011
  
2,333

(5)

$

16,051
 

  10,000 $5.4600  10/28/2011       

(1)
As of December 31, 2008,2010, all options are exercisable.

(2)
Value is based on the closing price of the Company's common stock of $2.00$6.88 on December 31, 2008,2010, as reported on the Nasdaq Global Market.

(3)
Performance targets established in 2010 were met as of December 31, 2010 and therefore, 51,060 shares vested February 23, 2011. Assuming continued employment with the Company, 14,00049,681 shares vest on March 31, of 2009, 10,0002011, 44,679 shares vest on March 31, 2010,2012, and 5,00038,013 shares vest on March 31, 2011.2013.

(4)
Performance targets established in 2010 were met as of December 31, 2010 and therefore, 51,060 shares vested February 23, 2011. Assuming continued employment with the Company, 16,347 shares vest on March 31, 2011, 11,346 shares vest on March 31, 2012, and 4,680 shares vest on March 31, 2013.

(5)
Assuming continued employment with the Company, 1,000 shares vest on March 31, 2009;2011, 667 shares vest on March 31, 2012 and 666 shares vest on March 31, 2010, and 333 shares vest on March 31, 2011.2013.


Option Exercises and Stock Vested in 20082010

        The following table shows all stock options exercised and value realized upon exercise, and all stock awards vested and value realized upon vesting by the Named Executive Officers during 2008.2010.

 
 Option Awards Stock Awards 
Name
 Number of Shares
Acquired on
Exercise
(#)
 Value Realized
on Exercise
($)(1)
 Number of Shares
Acquired on
Vesting
(#)
 Value Realized
on Vesting
($)(2)
 

Richard D. Smith

  31,250 $52,813  14,000 $71,870 

Richard S. Warzala

  200,000 $430,000  14,000 $71,870 

Kenneth R. Wyman

      667 $3,288 

 
 Option Awards Stock Awards 
Name
 Number of Shares
Acquired on
Exercise
(#)
 Value Realized
on Exercise
($)(1)
 Number of Shares
Acquired on
Vesting
(#)
 Value Realized
on Vesting
($)(2)
 

Richard S. Warzala

  40,000 $33,200  16,667 $59,100 

Richard D. Smith

  58,750 $60,513  16,667 $59,100 

Kenneth R. Wyman

      666 $2,358 

(1)
Value realized equals the difference between the option exercise price and the fair market value of the Company's common stock on the date of exercise, multiplied by the number of shares for which the option was exercised.

(2)
Value realized equals the market value of the Company's common stock on the vesting date, multiplied by the number of shares that vested.

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Director Compensation for 20082010

        The Board of Directors holds four regular full day meetings each year. Through February 2008,March 2011, non-employee directors received an annual retainer of $17,000,$19,000, paid quarterly, plus $800$900 per full day meeting of the board attended and $600 per telephone meeting attended. The Audit Committee chairman receives an annual retainer of $5,000,$6,800, the Compensation Committee and Governance and Nominating Committee chairmen each receive an annual retainer of $3,000$4,000 and each committee member receives a $1,500$1,700 annual retainer, each of which are paid quarterly.

        After February 2008,Beginning April 2011, non-employee directors receivedwill receive an annual retainer of $18,000,$20,000, paid quarterly, plus $800$1,000 per full day meeting of the board attended and $600 per telephone meeting attended. The Audit Committee chairman receiveswill receive an annual retainer of $6,000,$7,000, the Compensation Committee and Governance and Nominating Committee chairmen will each receive an annual retainer of $3,500$4,500 and each committee member receiveswill receive a $1,600$1,800 annual retainer, each of which are paid quarterly.

        The following table shows the compensation paid by the Company to non-employee Directors for 2008.2010.

Name
 Fees Earned
or Paid
in Cash
($)
 Stock
Awards
($)(1)
 Total
($)
 

Delwin D. Hock

 $29,450 $6,395 $35,845 

Graydon D. Hubbard

 $31,425 $8,041 $39,466 

George J. Pilmanis

 $27,875 $6,395 $34,270 

Michel M. Robert

 $21,350 $6,395 $27,745 

S. R. (Rollie) Heath, Jr. 

 $22,925 $5,300 $28,225 

Name
 Fees Earned
or Paid
in Cash
($)
 Stock
Awards
($)(1)
 Total
($)
 

Delwin D. Hock

 $31,150 $10,885 $42,035 

Graydon D. Hubbard(2)

 $34,475 $11,070 $45,545 

George J. Pilmanis

 $30,075 $10,885 $40,960 

Michel M. Robert

 $21,950 $7,515 $29,465 

S. R. (Rollie) Heath, Jr. 

 $24,525 $7,515 $32,040 

Gerald J. (Bud) Laber(3)

 $5,650 $25,650 $31,300 

        The aggregate number of stock options, all of which are exercisable, and unvested stock awards outstanding for each non-employee director as of December 31, 20082010 are shown below:

 
 Number of Shares 
Name
 Unvested
Stock Awards
 Stock
Options
 

Delwin D. Hock

  2,833  35,000 

Graydon D. Hubbard

  4,166  25,000 

George J. Pilmanis

  2,833  35,000 

Michel M. Robert

  2,833  40,000 

S. R. (Rollie) Heath, Jr. 

  3,500  0 

 
 Number of Shares 
Name
 Unvested
Stock Awards
 Stock
Options
 

Delwin D. Hock

  5,730  15,000 

Graydon D. Hubbard

  6,118  4,000 

George J. Pilmanis

  5,063  15,000 

Michel M. Robert

  4,063  40,000 

S. R. (Rollie) Heath, Jr. 

  4,063   

Gerald J. (Bud) Laber

  5,000   

        The Board approved grants of restricted shares to each of the non-employee directors effective February 23, 2011, with one-third vesting each year on March 31, 2012, 2013 and 2014 as follows: Mr. Hock, 4,000 shares; Mr. Pilmanis 3,500 shares; Messrs. Robert and Heath, 3,000 shares each; Mr. Laber 1,500 shares.


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OWNERSHIP OF COMPANY STOCK

Security Ownership of Certain Beneficial Owners

        To the best of our knowledge, no person or group (as those terms are used in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) beneficially owned, as of the Record Date, more than five percent of the shares of Common Stock outstanding, except as set forth in the following table.

Name and Address of Beneficial Owner
 Amount of
Common Stock
Beneficially Owned
 Percent of
Common Stock(1)
 

Richard D. Smith

  1,019,054(2) 12.7%
 

23 Inverness Way East, Suite 150

       
 

Englewood, Colorado 80112

       

Eugene E. Prince

  
749,366

(3)
 
9.9

%
 

7560 Panorama Drive

       
 

Boulder, Colorado 80303

       

Richard S. Warzala

  
649,551

(4)
 
8.1

%
 

23 Inverness Way East, Suite 150

       
 

Englewood, Colorado 80112

       

Peter H. Kamin

  
567,700

(5)
 
7.5

%
 

c/o The Nelson Law Firm, LLC

       
 

75 South Broadway, 4th Floor

       
 

White Plains, New York 10601

       

Name and Address of Beneficial Owner
 Amount of
Common Stock
Beneficially Owned
 Percent of
Common Stock(1)
 

Richard S. Warzala

  795,269(2) 9.5%
 

23 Inverness Way East, Suite 150

       
 

Englewood, Colorado 80112

       

Eugene E. Prince. 

  
695,399

(3)
 
8.3

%
 

7560 Panorama Drive

       
 

Boulder, Colorado 80303

       

Richard D. Smith

  
636,237

(4)
 
7.5

%
 

23 Inverness Way East, Suite 150

       
 

Englewood, Colorado 80112

       

J. Landis Martin

  
480,457

(5)
 
5.7

%
 

200 Fillmore Street, Suite 200

       
 

Denver, Colorado 80206

       

Peter H. Kamin

  
443,932

(6)
 
5.3

%
 

c/o The Nelson Law Firm, LLC

       
 

75 South Broadway, 4th Floor

       
 

White Plains, New York 10601

       


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(5)
Based on Schedule 13G filed by Mr. Martin with the Securities and Exchange Commission on or about February 7, 2011. Includes 94,792 shares of Common Stock held by The Martin GRAT Trust 2010-1, of which Mr. Martin is trustee.

(5)(6)
Based on Schedule 13G filed by Mr. Kamin with the Securities and Exchange Commission on or about February 2, 2005.10, 2011. Includes 131,40098,063 shares of Common Stock held by Peter H. Kamin Childrens Trust, 157,732121,330 shares held by Peter H. Kamin Profit

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Security Ownership of Management and Directors

        The following table sets forth certain information available to the Company with respect to shares of Common Stock owned by each director, each nominee for director, each executive officer and all directors, nominees and executive officers as a group, as of the Record Date:

Directors, Nominees and Executive Officers
 Amount of
Common Stock
Beneficially Owned
 Percentage of
Common Stock(1)

Delwin D. Hock

  66,263(2)*

Graydon D. Hubbard

  70,750(3)*

George J. Pilmanis

  49,250(4)*

Michel M. Robert

  257,250(5)3.2%

S. R. (Rollie) Heath, Jr. 

  8,500(6)*

Richard D. Smith

  1,019,054(7)12.7%

Richard S. Warzala

  649,551(8)8.1%

Kenneth R. Wyman

  58,155(9)*

All directors, nominees and executive officers as a group

  2,178,773(10)27.1%

Directors, Nominees and Executive Officers
 Amount of
Common Stock
Beneficially Owned
 Percentage of
Common Stock(1)
 

Delwin D. Hock

  58,493(2) * 

George J. Pilmanis

  47,509(3) * 

Michel M. Robert

  262,480(4) 3.1%

S. R. (Rollie) Heath, Jr. 

  19,068(5) * 

Gerald J. (Bud) Laber. 

  10,500(6) * 

Richard D. Smith

  636,237(7) 7.5%

Richard S. Warzala

  795,269(8) 9.5%

Kenneth R. Wyman

  39,530(9) * 

Employee Stock Ownership Plan

  324,384(10) 3.9%

All directors, nominees and executive officers as a group

  2,165,184(11) 25.4%


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(6)(5)
Includes 5,5007,063 shares of Common Stock granted as incentive restricted shares under the Company's stock incentive plans that have not yet vested.


Table

(6)
Includes 6,500 shares of Contents

(7)
See note (4) under "Security Ownership of Certain Beneficial Owners."

(8)
See note (2) under "Security Ownership of Certain Beneficial Owners."

(8)
See note (4) under "Security Ownership of Certain Beneficial Owners."

(9)
Includes 50,00010,000 shares of Common Stock which Mr. Wyman has the right to acquire upon the exercise of outstanding options and 1,9996,333 shares of Common Stock granted as incentive restricted shares under the Company's stock incentive plans that have not yet vested. Includes 3,6306,759 shares of Common Stock credited to the ESOP account of Mr. Wyman.

(10)
Includes all shares of the Company's ESOP plan of which Mr. Smith could be deemed to have shared investment power as a trustee of the ESOP.

(11)
Includes (i) 473,050103,419 shares of Common Stock which directors and executive officers have the right to acquire upon the exercise of outstanding options; (ii) 128,164269,998 shares of Common Stock granted to directors and executive officers as incentive restricted shares under the Company's stock incentive plans that have not yet vested; and (iii) 377,719324,384 shares of Common Stock held by the ESOP as to which Mr. Smith has shared investment power as trustee of the ESOP, which includes 9,58612,791 shares of Common Stock held by the ESOP for the account of Mr. Smith, 5,2478,736 shares of Common Stock held by the ESOP for the account of Mr. Warzala and 3,6306,759 shares of Common Stock held by the ESOP for the account of Mr. Wyman.


Section 16(a) Beneficial Ownership Reporting Compliance

        Section 16(a) of the Securities Exchange Act of 1934 requires directors and executive officers and persons who own more than ten percent of the Company's Common Stock to report their ownership and any changes in that ownership to the Securities and Exchange Commission. The Company believes that all Section 16(a) filing requirements applicable to its directors, executive officers and greater than ten percent beneficial owners were met for 2008,2010, except that one individual filed one Form 4 to report the exercise of options one day late and one individual filed a Form 4 to report the purchase of Common Stock one daytransactions late.


PROPOSAL TWO: RATIFICATION OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

        The Audit Committee of the Board of Directors has appointed Ehrhardt Keefe Steiner & Hottman PC (EKS&H) to act as auditors for the fiscal year ending December 31, 2009.2011. EKS&H has served as the independent registered public accounting firm for the Company since 2006. A representative of EKS&H is expected to be present at the Annual Meeting and will have an opportunity to make a statement, if he or she so desires, and will be available to respond to appropriate questions.

        At the Annual Meeting, the shareholders will be asked to ratify the selection of EKS&H as the Company's independent registered public accounting firm. Pursuant to the Rules and Regulations of the Securities and Exchange Commission, the Audit Committee has the direct responsibility to appoint, retain, fix the compensation and oversee the work of the Company's independent registered public


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accounting firm. Consequently, the Audit Committee will consider the results of the shareholder vote on ratification, but will exercise its judgment, consistent with its primary responsibility, on the appointment and retention of the Company's independent auditors.

        The affirmative vote of a majority of the votes cast on the proposal, assuming a quorum is present at the Meeting, is required to ratify the appointment of EKS&H. The directors of the Company unanimously recommend a vote "FOR" the ratification of EKS&H as the Company's independent registered public accounting firm for 2009.2011. Unless otherwise instructed, proxies will be voted "FOR" ratification of the appointment of EKS&H.


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        The following table shows the fees paid by the Company for the audit and other services provided by EKS&H for 20082010 and 2007.2009.

 
 2008 2007 

Audit Fees(1)

 $210,335 $230,500 

Audit-Related Fees(2)

  46,896  40,000 

Tax Fees(3)

  88,503  35,650 
      
 

Total

 $345,734 $306,150 
      

 
 2010 2009 

Audit Fees(1)

 $189,297 $207,970 

Audit-Related Fees(2)

  31,000  31,533 

Tax Fees(3)

  58,250  61,420 
      

Total

 $278,547 $300,923 
      

        The Audit Committee of the Board has adopted policies and procedures providing for the pre-approval of audit and non-audit services performed by the Company's independent registered public accounting firm. Pre-approval may be given as part of the Audit Committee's approval on the engagement of the independent auditor or on an individual case-by-case basis before the independent auditor is engaged to provide each service. The pre-approval of services may be delegated to the Audit Committee chairman, but the decision is subsequently reported to the full Audit Committee.

        The Audit Committee has considered whether provision of the non-audit related services described above is compatible with maintaining the independent accountants' independence and has determined that those services have not adversely affected EKS&H's independence.

        The affirmative vote of a majority of the votes cast on the proposal, assuming a quorum is present at the Meeting, is required to ratify the appointment of Ehrhardt Keefe Steiner & Hottman PC as the Company's independent public accounting firm for 2011.

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE "FOR" THE RATIFICATION. UNLESS OTHERWISE INSTRUCTED, PROXIES WILL BE VOTED "FOR" THE RATIFICATION.


OTHER MATTERS

        Our management does not know of any other matters to come before the 20092011 Annual Meeting. However, if any other matters come before the Annual Meeting, it is the intention of the persons designated as proxies to vote in accordance with their judgment on such matters.


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SHAREHOLDER PROPOSALS
FOR THE 20102012 ANNUAL MEETING

Proposals for the Company's Proxy Material

        Any Company shareholder who wishes to submit a proposal to be included in the Proxy Material for the Company's 20102012 Annual Meeting of Shareholders must submit such proposal to the Company at its office at 23 Inverness Way East, Suite 150, Englewood, Colorado 80112, Attention: Secretary, no later than November 24, 2009,23, 2011, in order to be considered for inclusion, if appropriate, in the Company's proxy statement and form of proxy relating to its 20102012 Annual Meeting of Shareholders.


Proposals to be Introduced at the Annual Meeting but not Intended to be Included in the Company's Proxy Material

        For any shareholder proposal to be presented in connection with the 20102012 Annual Meeting of Shareholders, including any proposal relating to the nomination of a director to be elected to the Board of Directors of the Company, a shareholder must give timely written notice thereof in writing to the Secretary of the Company in compliance with the advance notice and eligibility requirements contained in the Company's Bylaws. To be timely, a shareholder's notice must be delivered to the


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Secretary at the principal executive offices of the Company not less than 60 days and not more than 90 days prior to the first anniversary of the preceding year's annual meeting; provided, however, that in the event the date of the annual meeting has been changed by more than 30 days from the date contemplated at the time of the previous year's proxy statement, notice by the shareholder to be timely must be so received at a reasonable time before the solicitation is made. The notice must contain specified information about each nominee or the proposed business and the shareholder making the nomination or proposal.

        Based upon a meeting date of May 12, 200910, 2012 for the 20092012 Annual Meeting of Shareholders, a qualified shareholder intending to introduce a proposal or nominate a director at the 20102012 Annual Meeting of Shareholders should give written notice to the Company's Secretary not later than March 13, 201011, 2012 and not earlier than February 11, 2010.10, 2012.

        The specific requirements of these advance notice and eligibility provisions are set forth in Article II of the Company's Bylaws, a copy of which is available upon request.

        Such requests and any shareholder proposals should be sent to the Secretary of the Company at 23 Inverness Way East, Suite 150, Englewood, Colorado 80112.

  BY ORDER OF THE BOARD OF DIRECTORS

 

 

GRAPHIC

 

 

SUSAN M. CHIARMONTE
Secretary

March 24, 200922, 2011


ALLIED MOTION TECHNOLOGIES INC.
23 Inverness Way East, Ste. 150
Englewood, CO 80112

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

         The undersigned hereby appoints Delwin D. Hock and Richard D. Smith, or either of them, proxies of the undersigned, each with the power of substitution, and hereby authorizes them to vote, as designated below, all the shares of common stock, no par value, of the undersigned at the annual meeting of shareholders of Allied Motion Technologies Inc. (the "Company") to be held on May 12, 2009,2011, and at all adjournments thereof, with respect to the following:

(Continued and to be signed on the reverse side.)


ANNUAL MEETING OF SHAREHOLDERS OF
ALLIED MOTION TECHNOLOGIES INC.
MAY 12, 20092011

NOTICE OF INTERNET AVAILABILITY OF PROXY MATERIAL:
The Notice of Meeting, proxy statement and proxy card are available at
https://materials.proxyvote.com/019330

THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" EACH NOMINEE NAMED AND
"
FOR" RATIFICATION OF THE APPOINTMENT OF THE COMPANY'S
INDEPENDENT REGISTRED ACCOUNTING FIRM FOR 2009
ALL OTHER PROPOSALS

PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEAEPLEASE MARK YOUR
VOTE IN BLUE OR BLACK INK AS SHOWN HEREý

Item 1.    To elect seven directors to hold office until the next Annual Meeting of shareholders.

Item 2.    RATIFICATION OF THE APPOINTMENT OF THE COMPANY'S INDEPENDENT PUBLIC ACCOUNTING FIRM FOR 2009

Item 1.To elect seven directors to hold office until the next Annual Meeting of shareholders.



NOMINEES:
D. D. Hock, G.J. Laber, G. J. Pilmanis, M.M. Robert,
S.R. Heath, Jr. R.D. Smith, R.S. Warzala



o


FOR ALL NOMINEES



o


WITHHOLD AUTHORITY
for all nominees



o


FOR ALL EXCEPT
(See instructions below)



INSTRUCTIONS: To withhold authority to vote for any individual nominee(s), mark"FOR ALL EXCEPT" and print that nominee's name in the space provided below.IF AUTHORITY TO VOTE FOR NOMINEES IS NOT EXPRESSLY WITHHELD, IT SHALL BE DEEMED GRANTED.






Item 2.


RATIFICATION OF THE APPOINTMENT OF THE COMPANY'S INDEPENDENT PUBLIC ACCOUNTING FIRM FOR 2011
oFORoAGAINSToABSTAIN

         This proxy is being solicited on behalf of the Board of Directors of the Company, and may be revoked prior to its exercise. This proxy, when properly executed, will be voted as directed above by the undersigned shareholder. If no direction is made, it will be voted FOR the nominees named in Item 1 and FOR the approval of the ratification of the appointment of the Company's independent public accounting firm for 2009 in Item 2. In their discretion, the proxies are authorized to vote upon such other business as may properly come before the Annual Meeting.

PLEASE SIGN AND RETURN THIS PROXY IN THE ENCLOSED POSTAGE PAID ENVELOPE
AS PROMPTLY AS POSSIBLE.

Signature of Shareholder:Date:Signature of Shareholder:Date:




Signature of Shareholder:Date:Signature of Shareholder:Date:

Note:Please sign exactly as your name appears on this Proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person.