Document:

Employment Agreement

 Exhibit 10.23 
 EMPLOYMENT AGREEMENT 
 I, Charles M. Dauber, agree to the terms and conditions of employment
with American Electric Technologies, Inc., a Florida corporation (the “Company”), set forth in this Employment Agreement (“Agreement”). 
 1. Term of Employment. My employment under this Agreement shall commence on March 1, 2009 (“Effective Date”) and end on December 31, 2009 (“Expiration Date”), or such
earlier date on which my employment is terminated under Section 5 of this Agreement. If the Company continues to employ me beyond the Expiration Date without entering into a written agreement extending the term of this Agreement, all
obligations and rights under this Agreement shall prospectively lapse as of the Expiration Date, except the Company’s obligation to pay me two years salary and expected bonus under 5.a. Change of Control, the Company’s ongoing
indemnification obligation under Section 4(g), my confidentiality and other obligations under Section 6, and our mutual waiver under Section 8, and I thereafter shall be an at-will employee of the Company. 
 2. Nature of Duties. Company’s Board of Directors will elect me Senior Vice-President of Company and President of M&I Electric. As such,
I shall work exclusively for the Company and shall have all of the customary powers and duties associated with those positions. I will serve as chief executive officer of M&I Electric and I will be responsible for all of M&I Electric’s
operations and assets except those specifically assigned to others by the CEO of AETI. I recognize and agree that the Company may alter my duties from time to time. I shall devote my full business time and effort to the performance of my duties for
the Company, which I shall perform faithfully and to the best 

  

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of my ability. I shall be subject to the Company’s policies, procedures and approval practices, as generally in effect from time to time.
Notwithstanding the foregoing or any other provision of this Agreement, it shall not be a breach or violation of this Agreement for me to (i) serve on non-profit, civic or charitable boards or committees, (ii) deliver lectures, fulfill
speaking engagements or teach at educational institutions, (iii) serve on the board of directors of a non-competing company, or (iv) manage personal investments, so long as such activities do not significantly interfere with or
significantly detract from the performance of my responsibilities to the Company in accordance with this agreement. 
 3. Place of
Performance. I shall be based at the Company’s headquarters in Houston, Texas, except for required travel on the Company’s business. 
 4. Compensation and Related Matters. 
  

				
	 a. Base Salary.
	  	$	187,500.00
		
	 b. Expected Bonus.
	  	$	75,000.00
		
	 Total Expected Compensation.
	  	$	262,500.00

 c. The Expected Bonus will be paid to me if Company meets its annual budget and
operating plan objectives. A greater bonus may be paid if performance is above target based on the operating plan objectives at the discretion of the Board of Directors of Company. 
 d. If I am still employed by the Company on December 31, 2009, I will receive a Retention Bonus of $35,000 which will be paid to me
on or before March 15, 2010. 
 e. I will be eligible to participate in the Company’s Employee Stock Incentive Plan.
If Company meets its annual budget and operating plan objectives I will be eligible 

  

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to receive a grant of 15,000 shares of stock that will vest over a four year period in accordance with the Company’s equity bonus plan. 
 f. Automobile Allowance. The Company shall provide an automobile, or shall provide to me an automobile allowance equal to $800.00
per month. 
 g. Standard Benefits. During my employment, I shall be entitled to continue to participate in all
executive benefit plans and programs, including paid vacations, and other benefits generally available to other similarly situated Company executives in accordance with the terms of those plans and programs and applicable law. The Company shall have
the right to terminate or change any such plan or program at any time. 
 h. Indemnification. The Company shall extend
to me the same indemnification arrangements as are generally provided to other similarly situated Company executives, including after termination of my employment. 
 i. Expenses. I shall be entitled to receive prompt reimbursement for all reasonable and customary travel and business expenses I
incur in connection with my employment, but I must incur and account for those expenses in accordance with the policies and procedures established by the Company. 
 j. Sarbanes-Oxley Act Loan Prohibition. To the extent that any Company benefit, program, practice, arrangement, or this Agreement
would or might otherwise result in my receipt of an illegal loan (“Loan”), the Company shall use reasonable efforts to provide me with a substitute for the Loan that is lawful and of at least equal value to me. If this cannot be
done, or if doing so would be significantly 

  

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more expensive to the Company than making the Loan, the Company need not make the Loan to me or provide me substitute for it. 
 5. Termination. 
 a. Rights and
Duties. If my employment is terminated, I shall be entitled to the amounts or benefits shown on the applicable row of the following table, subject to the balance of this Section 5. The Company and I shall have no further obligations to each
other, except the Company’s Change of Control obligation, the Company’s ongoing indemnification obligation under Section 4(g), my confidentiality and other obligations under Section 6, and our mutual waiver under Section 8,
or as set forth in any written agreement I subsequently enter into with the Company. 
  

			
	DISCHARGE FOR CAUSE	 	Payment or provision when due of (1) any earned but unpaid base salary, expense reimbursements, and vacation days accrued prior to termination of employment, and (2) other unpaid vested amounts
or benefits under Company compensation, incentive, and benefit plans.
		
	DISABILITY	 	Same as for “Discharge for Cause” EXCEPT that I also shall be potentially eligible for disability benefits under any Company-provided disability plan in which I then
participate.
		
	DISCHARGE OTHER THAN FOR CAUSE OR DISABILITY	 	Same as for “Discharge for Cause” EXCEPT that, in exchange for my execution of a release in accordance with this section, my base salary, but not my employment, shall continue for up
to twelve months and Company will pay COBRA health

  

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		 	insurance premiums for me and my family for a like period while I seek other employment. This salary and insurance will be paid  1/12th monthly and will cease upon my commencement of other employment.

		
	RESIGNATION	 	Same as for “Discharge for cause “
		
	DEATH	 	Same as for “Discharge for Cause” EXCEPT that payments shall be made to the person or entity prescribed by Company policies.
		
	EXPIRATION OF AGREEMENT	 	Same as for “Discharge other than for cause or disability.”
		
	CHANGE OF CONTROL	 	Payment of two year’s salary and expected bonus as specified in 4.a. and b. in the event of a change of control after which my employment was ended by either party, plus forward vesting of
any equity option held by me and Company will pay COBRA health insurance premiums for me and my family for eighteen (18) months after my employment ends.

 b. Discharge for Cause. The Company may terminate my employment at any time if it believes
in good faith that it has Cause to terminate me. “Cause” shall include, but not be limited to: 
 i. my
refusal to follow the Company’s lawful directions or my material failure to perform my 

  

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agreed upon duties (other than by reason of physical or mental illness, injury, or condition), in either case, after I have been given notice of my default
and a reasonable opportunity to cure my default; 
 ii. my material failure to comply with Company policies; 
 iii. my engaging in conduct that is or may be unlawful or disreputable, to the possible detriment of the Company and its subsidiaries and
affiliates, and their predecessors and successors (“Group”), or my own reputation; 
 iv. my seeking,
exploring, or accepting a full time position with another business enterprise or venture without the Company’s written consent at any time more than 90 days before the Expiration Date; or 
 v. my engaging in activities on behalf of an enterprise which competes or plans to compete with the Company or any of its subsidiaries or
affiliates. 
 c. Termination for Disability. Except as prohibited by applicable law, the Company may terminate my employment on
account of Disability, or may transfer me to inactive employment status, which shall have the same effect under this Agreement as a termination for Disability. “Disability” means a physical or mental illness, injury, or condition
that prevents me from performing my duties, as determined under Company policies relating to disability applicable to me and other similarly situated employees. 
 d. Discharge Other Than for Cause or Disability. The Company may terminate my employment at any time for any reason, and without advance notice. If I 

  

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am terminated by the Company other than for Cause under Section 5(b) or for Disability under Section 5(c), I will only receive the special benefits
provided for a Discharge other than for Cause under Section 5(a) if I sign a general release form furnished to me by the Company (which may include any provision customary in formal settlement agreements and general releases, including such
things as my release of the Company and all conceivably related persons or entities (“affiliates”) from all known and unknown claims, my covenant never in the future to pursue any released claim, my promise never to seek employment with
the Company or any affiliate in the future, my promise not to solicit current or former customers, employees, suppliers or, to the fullest extent lawful, engage in business activities that compete with the Company or any affiliate, or disclose or
use any of their proprietary or trade secret information) within 60 days after my employment ends and I do not thereafter properly revoke the release. 
 e. Resignation. I promise not to resign my employment before the Expiration Date without giving the Company at least 30 days advance written notice. If I resign, the Company may accept my resignation effective
on the date set forth in my notice or any earlier date. 
 f. Death. If I die while employed under this Agreement, the payments
required by Section 5(a) in the event of my death shall be made. 
 g. Change of Control. “Change of Control” as used
herein occurs (i) if one or more persons or entities acting in concert acquire stock in the Company that constitutes, in the aggregate, more than 50 percent of 

  

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the total fair market value or voting power of the stock of the Company, and such persons or entities did not own more than 50 percent before such
acquisition, (ii) if there is a reorganization, merger or consolidation of the Company with one or more entities and thereafter, shares of the surviving entity are less than fifty percent (50%) owned by the Company or Company’s
shareholders as of the date of the execution of this Agreement, or (iii) if there is a transfer of substantially all of the property of the Company to another entity neither directly nor indirectly controlled by the Company’s present
shareholders. (For purposes of this provision, “controlled” means ownership of more than fifty percent (50%) of the voting stock.) 
 h. Amounts Owed to the Company. Any amounts payable to me under this section shall first be applied to repay any amounts I owe the Company. 
 6. Confidentiality. I acknowledge that as an integral part of the Company’s business, the Company has developed, and will develop, at a considerable investment of time and expense, marketing and business
plans and strategies, procedures, methods of operation and marketing, financial data, lists of actual and potential customers and suppliers, and independent sales representatives and related data, technical procedures, engineering and product
specifications, plans for development and expansion, and other confidential and sensitive information, and I acknowledge that the Company has a legitimate business interest in protecting the confidentiality of such information. I acknowledge that I
will be entrusted with such information as well as confidential information belonging to customers, suppliers, and other third parties. 
 a.
“Trade Secrets” are defined as information, regardless of form, belonging to the Company, licensed 

  

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by it, or disclosed to it on a confidential basis by its customers, suppliers, or other third parties, including, but not limited to, technical or
nontechnical data, formulae, patterns, compilations, programs, devices, methods, techniques, drawings, processes, financial data, product plans, or lists of actual or potential customers or suppliers which are not commonly known by or available to
the public and which information: (i) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or
use; and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. 
 b. “Confidential
Information” is defined as information, regardless of form, belonging to the Company, licensed by it, or disclosed to it on a confidential basis by its customers, suppliers, or other third parties, other than Trade Secrets, which is
material and valuable to the Company and not generally known by the public. 
 c. Promise Not to Disclose. I promise never to use or
disclose any Trade Secret before it has become generally known within the relevant industry through no fault of my own. I agree that this promise shall never expire. I further promise that, while this Agreement is in effect and for 2 years after its
termination, I will not, without the prior written approval of the Company, disclose any Confidential Information before it has become generally known within the relevant industry through no fault of my own. 
  

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 d. Promise Not to Solicit. To prevent me from inevitably breaking this promise, I further agree
that, while this Agreement is in effect and for 24 months after its termination: (1) as to any customer or supplier of the Group with whom I had dealings or about whom I acquired proprietary information during my employment, I will not solicit
or attempt to solicit (or assist others to solicit) the customer or supplier to do business with any person or entity other than the Group; and (2) I will not solicit or attempt to solicit (or assist others to solicit) for employment any person
who is, or within the preceding 12 months was, an officer, manager, employee, or consultant of the Group. 
 e. Promise Not to Engage in
Certain Employment. I agree that, while this Agreement is in effect and for 24 months after its termination, I will not accept any employment or engage in any activity, without the written consent of the Board if the loyal and complete
fulfillment of my duties would inevitably require me to reveal or utilize Trade Secrets or Confidential Information, as reasonably determined by the Board. 
 f. Return of Information. When my employment with the Company ends, I will promptly deliver to the Company, or, at its written instruction, destroy, all documents, data, drawings, manuals, letters, notes,
reports, electronic mail, recordings, and copies thereof, of or pertaining to it or any other Group member in my possession or control. In addition, during my employment with the Company or the Group and thereafter, I agree to meet with Company
personnel and, based on knowledge or insights I gained during my employment with the Company and the Group, answer any question they may have related to the Company or the Group. 
  

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 g. Promise to Discuss Proposed Actions in Advance. To prevent the inevitable use or disclosure of
Trade Secrets or Confidential Information, I promise that, before I disclose or use Trade Secrets or Confidential Information and before I commence employment, solicitations, or any other activity that could possibly violate the promises I have just
made, I will discuss my proposed actions with an attorney for the Company, who will advise me in writing whether my proposed actions would violate these promises. 
 h. Intellectual Property. Intellectual property (including such things as all ideas, concepts, inventions, plans, developments, software, data, configurations, materials (whether written or machine-readable),
designs, drawings, illustrations, and photographs, that may be protectable, in whole or in part, under any patent, copyright, trademark, trade secret, or other intellectual property law), developed, created, conceived, made, or reduced to practice
during my Company employment (except intellectual property that has no relation to the Group or any Group customer that I developed, purely on my own time and at my own expense), shall be the sole and exclusive property of the Company, and I hereby
assign all my rights, title, and interest in any such intellectual property to the Company. 
 i. Execution of Innovation Agreement. I
agree to the terms of the Company’s Assignment of Inventions agreement, which is attached to this Agreement as Schedule 1, and I promise to execute it contemporaneously with this Agreement. 
  

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 j. Enforcement of This Section. This section shall survive the termination of this Agreement for
any reason. I acknowledge that (a) my services are of a special, unique, and extraordinary character and it would be very difficult or impossible to replace them, (b) this section’s terms are reasonable and necessary to protect the
Company’s legitimate interests, (c) this section’s restrictions will not prevent me from earning or seeking a livelihood, (d) this section’s restrictions shall apply wherever permitted by law, and (e) my violation of
any of this section’s terms would irreparably harm the Company. Accordingly, I agree that, if I violate any of the provisions of this section, the Company shall be entitled to, in addition to other remedies available to it, an injunction to be
issued by any court of competent jurisdiction restraining me from committing or continuing any such violation, without the need to prove the inadequacy of money damages or post any bond or for any other undertaking. 
 7. Notice. 
 a. To the
Company. I will send all communications to the Company in writing, addressed as follows (or in any other manner the Company notifies me to use): 
 If Mailed: American Electric Technologies, Inc. 
 6410 Long 
 Houston, TX 77087 
 Attention: Arthur G.
Dauber 
 With a copy to: 
 J.
Hoke Peacock II 
 470 Orleans 
 Beaumont, TX 77701 
  

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 b. To Me. All communications from the Company to me relating to this Agreement must be sent to me
in writing as follows (or in any other manner that I notify the Company) at my Company office or in any other manner I notify the Company to use. 
  

			
	If mailed:	  	 Charles M. Dauber
 5102 Valerie St.
 Bellaire, TX 77401

 c. Time Notice Deemed Given. Notice shall be deemed to have been given when delivered or,
if earlier (1) when mailed by United States certified or registered mail, return receipt requested, postage prepaid, or (2) faxed with confirmation of delivery, in either case, addressed as required in this section. 
 8. Waiver of Jury Trial. The Company and I both hereby irrevocably waive any and all right to trial by jury in any litigation directly or
indirectly arising out of or relating to this Agreement and agree that any such action or proceeding shall be tried before a court and not before a jury. 
 9. Golden Parachute Limitation. I agree that my payments and benefits under this Agreement and all other contracts, arrangements, or programs shall not, in the aggregate, exceed the maximum amount that may be
paid to me without triggering golden parachute penalties under Section 280G and related provisions of the Internal Revenue Code, as determined in good faith by the Company’s independent auditors. If any benefits must be cut back to avoid
triggering such penalties, my benefits shall be cut back in the priority order designated by the Company. If an amount in excess of the limit set forth in this section is paid to me, I will repay the excess amount to the Company upon demand, with
interest at the rate provided for in Internal Revenue 

  

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Code Section 1274(b)(2)(B). The Company and I agree to cooperate with each other in connection with any administrative or judicial proceedings
concerning the existence or amount of golden parachute penalties with respect to payments or benefits I receive. 
 10. Amendment. No
provisions of this Agreement may be modified, waived, or discharged except by a written document signed by a duly authorized Company officer and me. Thus, for example, promotions, commendations, and/or bonuses shall not, by themselves, modify,
amend, or extend this Agreement. A waiver of any conditions or provisions of this Agreement in a given instance shall not be deemed a waiver of such conditions or provisions at any other time. 
 11. Interpretation; Exclusive Forum. The validity, interpretation, construction, and performance of this Agreement shall be governed by the laws
of the State of Texas (excluding any that mandate the use of another jurisdiction’s laws). Any litigation, with respect to such matters may only be brought in the courts of Harris County, Texas. 
 12. Successors. This Agreement shall be binding upon, and shall inure to the benefit of, me and my estate, but I may not assign or pledge this
Agreement or any rights arising under it, except to the extent permitted under the terms of the benefit plans in which I participate. Without my consent, the Company may assign this Agreement to any affiliate or successor that agrees in writing to
be bound by this Agreement, after which any reference to the “Company” in this Agreement shall be deemed to be a reference to the affiliate or successor, and the Company thereafter shall have no further primary, secondary or other
responsibilities or liabilities under this Agreement of any kind. 
 13. Taxes. The Company shall withhold taxes from payments it
makes pursuant to this Agreement as it determines to be required by applicable law. 
  

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 14. Validity. The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. In the event that a court of competent jurisdiction determines that any provision of this Agreement is invalid or more
restrictive than permitted under the governing law of such jurisdiction, then only as to enforcement of this Agreement within the jurisdiction of such court, such provision shall be interpreted and enforced as if it provided for the maximum
restriction permitted under such governing law. 
 15. Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall for all purposes be deemed to be an original and all of which, when taken together, shall constitute one and the same instrument. 
 16. Entire Agreement. All oral or written agreements or representations, express or implied, with respect to the subject matter of this Agreement are set forth in this Agreement, and this Agreement supersedes the terms of any
previous employment agreement between the Company and myself. However, this Agreement does not override other written agreements I have executed simultaneously with this Agreement relating to specific aspects of my employment, such as conflicts of
interest. 
 17. Former Employers. I am not subject to any employment, confidentiality, or other agreement or restriction that would
prevent me from fully satisfying my duties under this Agreement or that would be violated if I did so. Without the Company’s prior written approval, I promise I will not: 
 a. disclose proprietary information belonging to a former employer or other entity without its written permission; 
  

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 b. contact any former employer’s customers or employees to solicit their business or employment on
behalf of the Group; or 
 c. distribute announcements about or otherwise publicize my employment with the Group. 
 I will indemnify and hold the Company harmless from any liabilities, including defense costs, it may incur because I am alleged to have broken any of these promises or
improperly revealed or used such proprietary information or to have threatened to do so, or if a former employer challenges my entering into this Agreement or rendering services pursuant to it. 
 18. Department of Homeland Security Verification Requirement. If I have not already done so, I agree to timely file all documents required by the
Department of Homeland Security to verify my identity and my lawful employment in the United States. Notwithstanding any other provision of this Agreement, if I fail to meet any such requirements promptly after receiving a written request from the
Company to do so, I agree that my employment shall terminate immediately and that I shall not be entitled to any compensation from the Company of any type. 
 Remainder of page intentionally left blank 
  

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 I ACKNOWLEDGE THAT ALL UNDERSTANDINGS AND AGREEMENTS BETWEEN THE COMPANY AND ME RELATING TO THE SUBJECTS COVERED IN THIS
AGREEMENT ARE CONTAINED IN IT AND THAT I HAVE ENTERED INTO THIS AGREEMENT VOLUNTARILY AND NOT IN RELIANCE ON ANY PROMISES OR REPRESENTATIONS BY THE COMPANY OTHER THAN THOSE CONTAINED IN THIS AGREEMENT ITSELF. 
 I UNDERSTAND THAT ORGAIN, BELL & TUCKER, L.L.P. (OB&T) REPRESENTED THE COMPANY, NOT ME, IN NEGOTIATING THIS CONTRACT. TO THE EXTENT OB&T HAS REPRESENTED
ME, IS REPRESENTING ME, OR REPRESENTS ME IN THE FUTURE, I IRREVOCABLY WAIVE ANY CONFLICT OF INTEREST OBJECTIONS I MAY HAVE TO ITS REPRESENTATION OF THE COMPANY AS TO ANY MATTERS RELATING TO MY EMPLOYMENT BY THE COMPANY, INCLUDING THE NEGOTIATION OF
THIS CONTRACT. 
 I FURTHER ACKNOWLEDGE THAT I HAVE CAREFULLY READ THIS AGREEMENT, THAT I UNDERSTAND ALL OF IT, AND THAT I HAVE BEEN GIVEN THE OPPORTUNITY TO
DISCUSS THIS AGREEMENT, TOGETHER WITH ALL ATTACHED SCHEDULES AND EXHIBITS, WITH MY PRIVATE LEGAL COUNSEL AND HAVE AVAILED MYSELF OF THAT OPPORTUNITY TO THE EXTENT I WISHED TO DO SO. I UNDERSTAND THAT BY SIGNING THIS AGREEMENT I AM GIVING UP MY RIGHT
TO A JURY TRIAL. 
  

							
	Date: January 28, 2009	 		 	American Electric Technologies, Inc.
				
		 		 	By:	 	  

		 		 	Name:	 	Arthur G. Dauber
		 		 	Title:	 	President

  

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	Date: January 28, 2009	 		  	  

		 		  	Charles M. Dauber

 Signature Page to Employment Agreement 
  

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 Schedule 1 
 ASSIGNMENT OF INVENTIONS 
 1. I will promptly disclose in writing to the Company all Inventions. For purposes
of this Agreement, “Invention” shall mean any discovery, whether or not patentable, as well as improvements thereto, which is conceived or first practiced by me, alone or in a joint effort with others, whether prior to or following
execution of this Agreement, which: (i) may be reasonably expected to be used in a product of the Company; (ii) results from work that I have been assigned as part of my duties as an employee of the Company; (iii) is in an area of
technology which is the same as or substantially related to the areas of technology with which I am involved; (iv) is useful, or which the Company reasonably expects may be useful, in any manufacturing or product design process of the Company;
or (v) utilizes any Confidential Information. 
 2. All Inventions developed while employed by the Company in the scope of such my employment and duties
belong to and are the sole property of the Company and will be subject to this Agreement. I assign to the Company all right, title, and interest I may have or may acquire in and to all Inventions. I shall sign and deliver to the Company (during and
after employment) any other documents that the Company considers reasonably necessary to provide evidence of (i) the assignment of all of my rights, if any, in any Inventions and (ii) the Company’s ownership of such Inventions.

 3. I will assist the Company in applying for, prosecuting, obtaining, or enforcing any patent, copyright, or other right or protection relating to any
Invention, all at the Company’s expense but without consideration to me in excess of my salary or wages. 

 
If the Company requires any assistance after termination of my employment, I will be compensated for time actually spent in providing that assistance at an
hourly rate equivalent to my salary or wages during the last period of employment with the Company. 
 4. If the Company is unable to secure my signature on
any document necessary to apply for, prosecute, obtain, or enforce any patent, copyright, or other right or protection relating to any Invention, whether due to my mental or physical incapacity or any other cause, I hereby irrevocably designate and
appoint the Company and each of its duly authorized officers and agents as my agent and attorney-in-fact, to act for and in my behalf to execute and file any such document and to do all other lawfully permitted acts to further the prosecution,
issuance, and enforcement of patents, copyrights, or other rights or protections, with the same force and effect as if executed and delivered by me. 
 [signature page follows] 

					
	Employee:	 		 	American Electric Technologies, Inc.
			
	Signature of Employee	 		 	Signature of Authorized Company Representative
			
	 Charles M. Dauber
	 		 	 Arthur G. Dauber, President

	Print Name of Employee	 		 	Name and Title of Representative
			
	 February 9, 2009.
	 		 	 February 9, 2009.

	Date, but effective March 1, 2009	 		 	Date, but effective March 1, 2009

 Signature Page to Assignment of Inventions Agreement2009 Executive Deferred Compensation Plan

 Exhibit 10.25 
 AMERICAN ELECTRIC TECHNOLOGIES, INC. 
 2009 EXECUTIVE DEFERRED COMPENSATION PLAN 
 PREAMBLE 
 The purpose of this Plan is to provide
Eligible Employees of American Electric Technologies, Inc. (“AETI”) and its participating Affiliates with the opportunity to defer payment and taxation of some elements of their compensation. 
 This Plan is designed to comply with Section 409A of the Internal Revenue Code and the regulations issued thereunder. 
 ARTICLE 1 
 DEFINITIONS

 Capitalized terms in the text of the Plan are defined as follows: 
 Administrator means the Compensation Committee of the Board of Directors of AETI. 
 AETI means American Electric Technologies, Inc.,
a Florida corporation. 
 Affiliate means AETI or any corporation or entity which (i) along with AETII, is a component member of a
“controlled group of corporations” within the meaning of Section 414(b) of the Code, and (ii) has approved the participation of its Executives in the Plan. 
 Beneficiary means the person or persons or entity designated as such in accordance with Article 7 of the Plan. 
 Board means the Board of Directors of AETII. 
 Bonus means the dollar amount of cash bonus awarded by the Employer to the Participant
pursuant to the terms of the Executive Compensation Program, or a successor program or plan governing annual executive bonuses, before reductions for deferrals under the Plan, provided such award constitutes “performance-based
compensation” within the meaning of Treasury Regulation Section 1.409A-1(e). 
 Change in Control means the occurrence of a “change in
the ownership,” a “change in the effective control” or a “change in the ownership of a substantial portion of the assets” of AETI within the meaning of Section 409A of the Code.
 Code means the Internal Revenue Code of 1986, as amended. 
 Contingent Event means the Participant’s death while employed by an Affiliate or Separation from Service for other reasons if such event occurs prior to the Participant’s Retirement. 
 Contingent Payment Election means an election regarding the time and form of payment made or deemed made in accordance with Section 5.2. 
 Crediting Rate means the rate at which interest will be credited to Deferral Accounts. The rate will be determined by the Administrator annually in advance of the
calendar year and will generally be equal to the publicly announced prime rate as published by the Wall Street Journal plus two (2%) percent. Once established, the Crediting Rate shall remain the same for the entire Plan Year. AETI reserves the
right to prospectively change the definition of Crediting Rate. 
 Deferral Account means the notional account established for record keeping purposes
for a Participant pursuant to Article 4 of the Plan. 
 Deferral Election means the Participant’s written election to defer amounts under the
Plan, submitted to the Administrator. 
 Deferral Period means the Plan Year covered by a valid Deferral Election previously submitted by a
Participant, or in the case of a newly eligible Participant, the balance of the Plan Year following the date of the Deferral Election. 
 Disability
means the Participant (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous
period of not less than twelve months or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve months,
receiving income replacement benefits for a period of not less than three months under a plan covering employees of the Employer. 
 Eligible Employee
means an Executive of an Affiliate, who (i) is a U.S. employee or an expatriate who is based and paid in the U.S., (ii) is designated by the Administrator as eligible to participate in the Plan (subject to the restriction in
Section 8.2 of the Plan), and (iii) qualifies as a member of a “select group of management or highly compensated employees” under ERISA. 
 Employee Stock Purchase Plan means the AETI 2007 Employee Stock Purchase Plan or successor stock purchase plan. 

 Employer means the Affiliate employing the Participant. 
 ERISA means the Employee Retirement Income Security Act of 1974, as amended. 
 Executive means an employee of an Affiliate who is designated an Executive by the CEO of that Affiliate or who is elected as a Vice President or officer of higher rank by the board of that Affiliate or by the Board of AETI.

 Executive Salary Deferral means the percentage deferred from Salary under this Plan. 
 Participant means an Eligible Employee who has completed a Deferral Election with respect to future payments pursuant to Article 2 of the Plan, or an employee or former employee who has a Deferral Account
balance. 
 Payment Election means a Primary Payment Election or a Contingent Payment Election. 
 Plan means the AETI 2009 Executive Deferred Compensation Plan. 
 Plan Year means the calendar year. 
 Primary Payment Election means an election regarding the time and form of payments made or
deemed made in accordance with Section 5.1. 
 Retirement means a Separation from Service after attainment of age 62. 
 Salary means the Participant’s basic pay from the Employer (excluding Bonuses, commissions, severance pay, and other non-regular forms of compensation)
before reductions for deferrals under the Plan or the Employee Stock Purchase Plan. 
 Separation from Service occurs when a Participant dies,
retires, or otherwise has a termination of employment from the Employer that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1), without regard to the optional alternative
definitions available thereunder. 
 Similar Plan means a plan required to be aggregated with this Plan under Treasury Regulation
Section 1.409A-1(c)(2)(i)(A). 
 Specified Employee means a Participant who is designated as an elected Vice President or above by the
Administrator, using the identification date and methods determined by the Administrator. 
 Termination of Employment means the voluntary or
involuntary Separation from Service for any reason other than Retirement, Disability or death. 
 Unforeseeable Emergency means a severe financial
hardship to the Participant or the Participant’s Beneficiary after the Participant’s death resulting from an illness or accident of the Participant, the Participant’s Beneficiary, or the Participant’s or Beneficiary’s (after
the death of the Participant) spouse or dependent (as defined in Code Section 152, without regard to Sections 152(b)(1), (b)(2) and (d)(1)(B)); loss of the Participant’s property or the Beneficiary’s property (after the
Participant’s death) due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example, not as a result of a natural disaster); or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the Participant’s or Beneficiary’s (after the Participant’s death) control. 
 Valuation
Date means the last day of the month in which the final day of employment falls prior to Separation from Service, or the day before a scheduled distribution occurs. 
 ARTICLE 2 
 DEFERRAL ELECTIONS 
 2.1 Elections 
 (a) Salary. An Eligible Employee may elect to defer Salary under the Plan by filing with the
Administrator a completed and fully executed Salary Deferral Election specifying the whole percentage of Salary to be deferred prior to the beginning of the Plan Year during which the Eligible Employee performs the services for which such Salary is
to be earned. The maximum Salary Deferral is 75% of Salary. Once made, a Salary Deferral Election (including any election regarding time and form of payment) will continue to apply for subsequent Deferral Periods unless the Participant submits a new
Salary Deferral Election form during a subsequent enrollment period changing the deferral amount or revoking the existing election. 
 (b) Bonus. An Eligible
Employee may elect to defer some or all of his or her Bonus by submitting a Bonus Deferral Election to the Administrator prior to the date that is six months before the end of the performance period and in no event later than the date the Bonus has
become readily ascertainable. Once made, this Bonus Deferral Election (including any election regarding time and form of payment) will continue to apply for subsequent Deferral Periods unless the Participant submits a new Bonus Deferral Election
form during a subsequent enrollment period changing the deferral amount or revoking the existing election. 
  

 2 

 (c) Initial Eligibility. Notwithstanding the foregoing, an employee who first becomes an Eligible Employee during a Plan
Year may make an initial Deferral Election for the deferral of Salary or Bonus, provided that such Eligible Employee has not previously become eligible to participate in this or any Similar Plan. Any Salary Deferral Election must be made within
thirty days after the date the employee becomes an Eligible Employee and shall apply to Salary earned for services performed after the election is filed with the Administrator. If the employee first becomes an Eligible Employee prior to
establishment of the performance criteria for a Bonus, the eligible Employee may make the Bonus Deferral Election prior to the date that is six months before the end of the performance period but not later than the date the Bonus has become readily
ascertainable. If the employee first becomes an Eligible Employee after establishment of the performance criteria or less than six months before the end of the Deferral Period, such Bonus Deferral Election must be made within thirty days after the
date the employee becomes an Eligible Employee and shall apply to that portion of the Bonus earned during the Plan Year multiplied by the ratio of the number of days remaining in the calendar year after the election is filed with the Administrator
to the total number of days during the Plan Year that such Employee is employed by an Affiliate. 
 ARTICLE 3 
 VESTING 
 3.1 Vesting 
 Amounts deferred under this Plan and any earnings thereon will be 100% vested at all times. 
 ARTICLE 4 
 DEFERRAL ACCOUNTS 
 4.1 Deferral Accounts 
 Solely for record keeping purposes, the Administrator will maintain a Deferral Account for
each Participant with such subaccounts as the Administrator [The Administrator is the comp committee. Who will be responsible to the comp committee for the record keeping?] or its record keeper finds necessary or convenient in the administration of
the Plan. 
 4.2 Timing of Credits 
 (a) Salary and Bonus
Deferrals. The Administrator will credit to the Participant’s Deferral Account the Salary and Bonus Deferrals under Article 2 at the time such amounts would otherwise have been paid to the Participant but for the Deferral Election. [Are we
going to set up a real or notional account? If real can I assume that the interest rate will be that earned on the account. If notional what will be the interest rate?] 
 (b) Interest Crediting Dates. At the end of each calendar month, the balance in the Participant’ s Deferral Account as of the end of the immediately preceding month will be multiplied by the Crediting Rate
divided by 12. The resulting interest amount shall then be credited to the Participant’s Deferral Account. 
 4.3 Statement of Accounts

 The Administrator will periodically provide to each Participant a statement setting forth the balance of the Deferral Account maintained for the
Participant. 
 ARTICLE 5 
 PAYMENT ELECTIONS 
 5.1 Primary Payment Election 
 As part of a Deferral Election, a Participant may make a Primary Payment Election specifying the payment schedule for each subaccount that will be created as a result of the Deferral Election. The choices available for a Primary Payment
Election are as follows: 
 (a) Monthly installments following Retirement for 60 to 180 months commencing upon (i) the first day of a specified month and
year that may be no later than the month and year in which the Participant attains age 75 (if the Participant has not had a Separation from Service by such specified date, payments will commence upon the Participant’s Retirement); (ii) the
Participant’s Retirement; or (iii) the first day of the month that is a specified number of months following the Participant’s Retirement; or 
 (b) A single lump sum payable upon (i) the first day of a specified month and year that may be no later than the month and year in which the Participant attains age 75 (if the Participant has not had a Separation from Service by such
specified date, payment will be made upon the Participant’s Retirement); (ii) the Participant’s Retirement; or (iii) the first day of the month that is a specified number of months following the Participant’s Retirement; or

 (c) Two to ten annual or semi-annual (twice yearly) installments commencing upon (i) the first day of a specified month and year that may be no later
than the month and year in which the Participant attains age 75 (if the Participant has not had a Separation from Service by such specified date, payments will commence upon the Participant’s Retirement); (ii) the Participant’s
Retirement; or (iii) the first day of the month that is a specified number of months following the Participant’s Retirement; or (d) Any combination of the preceding three choices. 
  

 3 

 Lump sum payments or initial installment payments will be made within 30 days of the scheduled dates (or within 30 days
following the date that is six months after the Participant’s Separation from Service (or, if earlier, 30 days after the Participant’s death) if such delay is required pursuant to Section 5.5), and interest will be added to the
payment amount for the days elapsed between the scheduled payment date and the actual date of payment. 
 If paid in installments, the installments will be
paid in amounts that will amortize the Deferral Account or subaccount balance with interest credited at the Crediting Rate over the period of time benefits are to be paid. For purposes of calculating installments, the Deferral Account or subaccount
will be valued as of the Valuation Date and subsequently as of December 31 each year with subsequent installments adjusted for the next calendar year according to procedures established by the Administrator. Notwithstanding anything herein to
the contrary, distribution in installments shall be treated as a single payment as of the date of the initial installment for purposes of Section 409A of the Code. 
 If no Primary Payment Election has been made, the Primary Payment Election shall be deemed to be a single lump sum upon the Participant’s Retirement. 
 5.2 Contingent Payment Election 
 As part of a Deferral Election, a Participant may make a Contingent Payment Election
for each of the Contingent Events of (1) the Participant’s death while employed by an Affiliate, (2) Separation from Service because of Disability and (3) Termination of Employment, for each subaccount that will be created as a
result of the Deferral Election, which Contingent Payment Election will take effect upon the first Contingent Event, if any, that occurs before the Participant’s Retirement. The choices available for the Contingent Payment Election are those
specified in Section 5.1 except that the references to Retirement shall instead refer to the applicable Contingent Event. 
 If the Participant has made no Contingent Payment Election and a Contingent Event occurs prior to Retirement, the Administrator will pay the benefit as specified in the Participant’s Primary Payment Election,
except that payments scheduled for payment or commencement of payment “upon Retirement” will be paid or commence on the later of (1) the first day of the month in which the Participant’s 55th birthday occurs or would have occurred or (2) the first day of the month following the month in which the Contingent Event occurs. If the Participant has made neither a
Contingent Payment Election nor a Primary Payment Election and a Contingent Event occurs prior to Retirement, the Payment Election shall be deemed to be a single lump sum upon the Participant’s Contingent Event. 
 5.3 Changes to Payment Elections 
 Participants may change a Primary
Payment Election or Contingent Payment Election, including a deemed Payment Election, after the period allowed for the initial Deferral Election by submitting a new written Payment Election to the Administrator, subject to the following conditions:
(1) the new Payment Election shall not be effective unless made at least twelve months before the payment or commencement date scheduled under the prior Payment Election; (2) the new Payment Election must defer a lump sum payment or
commencement of installment payments for a period of at least five years from the date that the lump sum would have been paid or installment payments would have commenced under the prior Payment Election and (3) the election shall not be
effective until twelve months after it is filed with the Administrator. If at the time a new Payment Election is filed, the Administrator determines that imposition of the five-year delay would require that a Participant’s payments begin after
he or she has attained age 75, then the Participant will not be permitted to make a new Payment Election. The payment schedules available under a new Payment Election are those specified in Section 5.1 and 5.2 (as applicable), subject to the
conditions specified in this paragraph. 
 5.4 Small Benefit Exception 
 Notwithstanding the foregoing, the Administrator may, in its sole discretion, pay the benefits in a single lump sum if the sum of all benefits payable to the Participant under this Plan and all Similar Plans is less
than or equal to the applicable dollar amount under Section 402(g)(1)(B) of the Code. 
 5.5 Six-Month Delay in Payment for Specified Employees 

 Notwithstanding anything herein to the contrary, in the event that a Participant who is a Specified Employee is entitled to a distribution from the Plan
due to the Participant’s Separation from Service, the lump sum payment or the commencement of installment payments, as the case may be, shall not occur before the date that is the earlier of (1) six months following the Participant’s
Separation from Service for reasons other than death or (2) the Participant’s death. 
 ARTICLE 6 
 SURVIVOR BENEFITS 
 6.1 Payment 
 Following the Participant’s death, payment of the Participant’s Deferral Account will be made to the Participant’s Beneficiary or Beneficiaries according
to the payment schedule elected or deemed elected according to Article 5. 
  

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 ARTICLE 7 
 BENEFICIARY DESIGNATION 
 7.1 Beneficiary Designation. 
 The Participant will have the right, at any time, to designate any person or persons as Beneficiary (both primary and contingent) to whom payment under the Plan will be
made in the event of the Participant’s death. The Beneficiary designation will be effective when it is submitted in writing to the Administrator during the Participant’s lifetime on a form prescribed by the Administrator. 
 The submission of a new Beneficiary designation will cancel all prior Beneficiary designations. Any finalized divorce or marriage of a Participant subsequent to the date
of a Beneficiary designation will revoke such designation, unless in the case of divorce the previous spouse was not designated as a Beneficiary, and unless in the case of marriage the Participant’s new spouse has previously been designated as
Beneficiary. 
 If a Participant fails to designate a Beneficiary as provided above, or if the Beneficiary designation is revoked by marriage, divorce, or
otherwise without execution of a new designation, or if every person designated as Beneficiary predeceases the Participant, then the Administrator will direct the distribution of the benefits to the Participant’s estate. If a primary
Beneficiary dies after commencement the Participant’s death but prior to completion of benefits under this Plan, and no contingent Beneficiary has been designated by the Participant, any remaining payments will be paid to the primary
Beneficiary’s Beneficiary, if one has been designated, or to the Beneficiary’s estate. 
 ARTICLE 8 
 CONDITIONS RELATED TO BENEFITS 
 8.1
Nonassignability 
 The benefits provided under the Plan may not be alienated, assigned, transferred, pledged or hypothecated by or to any person or
entity, at any time or any manner whatsoever. These benefits will be exempt from the claims of creditors of any Participant or other claimants and from all orders, decrees, levies, garnishment or executions against any Participant to the fullest
extent allowed by law. Notwithstanding the foregoing, the benefit payable to a Participant may be assigned in full or in part, pursuant to a domestic relations order of a court of competent jurisdiction. 
 8.2 Unforeseeable Emergency Distribution 
 A Participant, or a
Participant’s Beneficiary following the Participant’s death, may submit a hardship distribution request to the Administrator in writing setting forth the reasons for the request. The Administrator will have the sole authority to approve or
deny such requests. Upon a finding that the Participant or the Beneficiary has suffered an Unforeseeable Emergency, the Administrator may in its discretion, permit the Participant to cease any on-going deferrals and accelerate distributions of
benefits under the Plan in the amount reasonably necessary to alleviate the Unforeseeable Emergency. If a distribution is to be made to a Participant on account of an Unforeseeable Emergency, the Participant may not make deferrals under the Plan
until one entire Plan Year following the Plan Year in which a distribution based on an Unforeseeable Emergency was made has elapsed. 
 8.3 No Right to
Assets 
 The benefits paid under the Plan will be paid from the general funds of the Employer, and the Participant and any Beneficiary will be no more
than unsecured general creditors of the Employer with no special or prior right to any assets of the Employer for payment of any obligations hereunder. Neither the Participant nor the Beneficiary will have a claim to benefits from any other
Affiliate. Plan benefits are available to Eligible Employees of AETI and its participating Affiliates. Amounts of compensation deferred by Participants pursuant to this Plan accrue as liabilities of the participating Affiliate at the time of the
deferral under the terms and conditions set forth herein. By electing to defer compensation under the Plan, Participants consent to AETI sponsorship of the Plan, but acknowledge that AETI is not a guarantor of the benefit obligations of other
participating Affiliates. Each participating Affiliate is responsible for payment of the accrued benefits under the Plan with respect to its own Eligible Employees subject to the terms and conditions set forth herein. 
 8.4 Protective Provisions 
 The Participant will cooperate with the
Administrator by furnishing any and all information requested by the Administrator, in order to facilitate the payment of benefits hereunder, taking such physical examinations as the Administrator may deem necessary and signing such consents to
insure or taking such other actions as may be requested by the Administrator. If the Participant refuses to cooperate, the Administrator and the Employer will have no further obligation to the Participant under the Plan. 
 
 8.5 Constructive Receipt 
 Notwithstanding anything to the contrary in this Plan, in the event the Administrator determines that amounts deferred under the Plan have been constructively received by a Participant and must be recognized as income
for federal income tax purposes, distribution of the amounts included in a Participant’s income will be made to such Participant. The determination of the Administrator under this Section 8.5 will be binding and conclusive. 
  

 5 

 8.6 Withholding 
 The
Participant or the Beneficiary will make appropriate arrangements with the Administrator for satisfaction of any federal, state or local income tax withholding requirements and Social Security or other employee tax requirements applicable to the
accrual or payment of benefits under the Plan. If no other arrangements are made, the Administrator may provide, at its discretion, for such withholding and tax payments as may be required. 
 8.7 Incapacity 
 If any person entitled to payments under this Plan
is, in the opinion of the Administrator or its designee, incapacitated and unable to use such payments in his or her own best interest, the Administrator or its designee may direct that payments (or any portion) be made to that person’s legal
guardian or conservator, or that person’s spouse, as an alternative to payment to the person unable to use the payments. The Administrator or its designee will have no obligation to supervise the use of such payments, and court-appointed
guardianship or conservatorship may be required. 
 ARTICLE 9 
 PLAN ADMINISTRATION 
 9.1 Plan Interpretation 
 The Administrator will administer the Plan and interpret, construe and apply its provisions in accordance with its terms and will provide direction and oversight as
necessary to management, staff, or contractors to whom day-to-day Plan operations may be delegated. The Administrator will establish, adopt or revise such rules and regulations as it may deem necessary or advisable for the administration of the
Plan. All decisions of the Administrator will be final and binding. 
 9.2 Limited Liability 
 Neither the Administrator, nor any of its members or designees, will be liable to any person for any action taken or omitted in connection with the interpretation and
administration of this Plan. 
 ARTICLE 10 
 AMENDMENT OR TERMINATION OF PLAN 
 10.1 Amendment of Plan 
 Subject to the terms of Section 10.3, AETI may at any time amend the Plan in whole or in part, provided, however, that the amendment (i) will not decrease the
balance of the Participant’s Deferral Account at the time of the amendment and (ii) will not retroactively decrease the applicable Crediting Rates of the Plan prior to the time of the amendment. AETI may amend the Crediting Rates of the
Plan prospectively, in which case the Administrator will notify the Participant of the amendment in writing within 30 days after the amendment. 
 10.2
Termination of Plan 
 Subject to the terms of Section 10.3, AETI may at any time terminate the Plan. If AETI terminates the Plan, distributions to
the Participants or their Beneficiaries shall be made on the dates on which the Participants or Beneficiaries would receive benefits hereunder without regard to the termination of the Plan except that payments may be made upon termination of the
Plan if the requirements for accelerated payment under Treasury Regulation Section 1.409A-3(j)(4)(ix)(C) are satisfied. 
 10.3 Amendment or
Termination after Change in Control 
 Notwithstanding the foregoing, AETI will not amend or terminate the Plan without the prior written consent of
affected Participants for a period of two calendar years following a Change in Control of AETI and will not thereafter amend or terminate the Plan in any manner which affects any Participant (or Beneficiary of a deceased Participant) who commences
receiving payment of benefits under the Plan prior to the end of the two year period following a Change in Control. 
 10.4 Exercise of Power to Amend or
Terminate 
 AETI’s power to amend or terminate the Plan will be exercisable by the Compensation Committee of the AETI Board of Directors.

 
 ARTICLE 11 
 CLAIMS AND REVIEW PROCEDURES 
 11.1 Claims Procedure
for Claims Other Than for Vesting due to Disability 
 (a) Except for claims due to Disability, the Administrator will notify a Participant or his or her
Beneficiary (or person submitting a claim on behalf of the Participant or Beneficiary) (a “claimant”) in writing, within 90 days after his or her written application for benefits, of his or her eligibility or noneligibility for benefits
under the Plan. If the Administrator determines that a claimant is not eligible for benefits or full benefits, the notice will set forth (1) the specific reasons for the denial, (2) a specific reference to the provisions of the Plan on
which the denial is based, (3) a description of any additional information or material necessary for the 

  

 6 

 
claimant to perfect his or her claim, and a description of why it is needed, and (4) an explanation of the Plan’s claims review procedure and other
appropriate information as to the steps to be taken if the claimant wishes to have the claim reviewed. If the Administrator determines that there are special circumstances requiring additional time to make a decision, the Administrator will notify
the claimant of the special circumstances and the date by which a decision is expected to be made, and may extend the time for up to an additional 90-day period. 
 (b) If a claimant is determined by the Administrator not to be eligible for benefits, or if the claimant believes that he or she is entitled to greater or different benefits, the claimant will have the opportunity to have the claim reviewed
by the Administrator by filing a petition for review with the Administrator within 60 days after receipt of the notice issued by the Administrator. Said petition will state the specific reasons which the claimant believes entitle him or her to
benefits or to greater or different benefits. Within 60 days after receipt by the Administrator of the petition, the Administrator will afford the claimant (and counsel, if any) an opportunity to present his or her position to the Administrator in
writing, and the claimant (or counsel) will have the right to review the pertinent documents. The Administrator will notify the claimant of its decision in writing within the 60-day period, stating specifically the basis of its decision, written in
a manner calculated to be understood by the claimant and the specific provisions of the Plan on which the decision is based. If, because of the need for a hearing, the 60-day period is not sufficient, the decision may be deferred for up to another
60-day period at the election of the Administrator, but notice of this deferral will be given to the claimant. In the event of the death of the Participant, the same procedures will apply to the Participant’s Beneficiaries. 
 11.2 Claims Procedure for Claims due to Disability 
 (a) Within a
reasonable period of time, but not later than 45 days after receipt of a claim due to Disability, the Administrator or its delegate shall notify the claimant of any adverse benefit determination on the claim, unless circumstances beyond the
Plan’s control require an extension of time for processing the claim. In no event may the extension period exceed 30 days from the end of the initial 45-day period. If an extension is necessary, the Administrator or its delegate shall provide
the claimant with a written notice to this effect prior to the expiration of the initial 45-day period. The notice shall describe the circumstances requiring the extension and the date by which the Administrator or its delegate expects to render a
determination on the claim. If, prior to the end of the first 30-day extension period, the Administrator or its delegate determines that, due to circumstances beyond the control of the Plan, a decision cannot be rendered within that extension
period, the period for making the determination may be extended for an additional 30 days, so long as the Administrator or its delegate notifies the claimant, prior to the expiration of the first 30-day extension period, of the circumstances
requiring the extension and the date as of which the Administrator or its delegate expects to render a decision. This notice of extension shall specifically describe the standards on which entitlement to a benefit is based, the unresolved issues
that prevent a decision on the claim, and the additional information needed to resolve those issues, and that the claimant has at least 45 days within which to provide the specified information. 
 (b) In the case of an adverse benefit determination, the Administrator or its delegate shall provide to the claimant written or electronic notification setting forth in
a manner calculated to be understood by the claimant (i) the specific reason or reasons for the adverse benefit determination; (ii) reference to the specific Plan provisions on which the adverse benefit determination is based; (iii) a
description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why the material or information is necessary; (iv) a description of the Plan’s claim review procedures and the time
limits applicable to such procedures, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse final benefit determination on review and in accordance with this
Section 11.2 (v) if an internal rule, guideline, protocol or similar criterion (“internal standard”) was relied upon in making the determination, a copy of the internal standard shall be provided to the claimant free of charge
upon request; and (vi) if the determination is based on a medical necessity or experimental treatment or similar exclusion or limit, an explanation of the scientific or clinical judgment for the determination or a statement that such
explanation shall be provided free of charge upon request. 
 (c) If a claimant is determined by the Administrator not to be eligible for benefits, or if the
claimant believes that he or she is entitled to greater or different benefits, the claimant will have the opportunity to have the claim reviewed by the Administrator by filing a petition for review with the Administrator within 180 days after
receipt of the notice issued by the Administrator. Said petition will state the specific reasons which the claimant believes entitle him or her to benefits or to greater or different benefits. Within 45 days after receipt by the Administrator of the
petition, the Administrator will afford the claimant (and counsel, if any) an opportunity to present his or her position to the Administrator in writing, and the claimant (or counsel) will have the right to review the pertinent documents. The
Administrator will notify the claimant of its decision in writing within the 45-day period, stating specifically the basis of its decision, written in a manner calculated to be understood by the claimant and including the information described in
Section 10.2(b) above. If, because of the need for a hearing, the 45-day period is not sufficient, the decision may be deferred for up to another 45-day period at the election of the Administrator, but notice of this deferral will be given to
the claimant. In the event of the death of the Participant, the same procedures will apply to the Participant’s Beneficiaries. 
 11.3 Dispute
Arbitration 
 Notwithstanding the foregoing, and because it is agreed that time will be of the essence in determining whether any payments are due to a
claimant under the Plan, a claimant may, if he or she desires, submit any claim for payment under the Plan to arbitration. This right to select arbitration will be solely that of the claimant and the claimant may decide whether or not to arbitrate
in his or her 

  

 7 

 
discretion. The “right to select arbitration” is not mandatory on the claimant, and the claimant may choose in lieu thereof to bring an action in
an appropriate civil court. Once an arbitration is commenced, however, it may not be discontinued without the mutual consent of both parties to the arbitration. During the lifetime of the Participant only he or she can use the arbitration procedure
set forth in this section. 
 Any claim for arbitration may be submitted as follows: if a claimant has submitted a request to be paid under the Plan and the
claim is finally denied by the Administrator in whole or in part, the claim may be filed in writing with an arbitrator of the claimant’s choice who is selected by the method described in the next four sentences. The first step of the selection
will consist of the claimant submitting a list of five potential arbitrators to the Administrator. Each of the five arbitrators must be either (1) a member of the National Academy of Arbitrators located in the State of Texas or (2) a
retired Texas District Court or Court of Appeals judge. Within one week after receipt of the list, the Administrator will select one of the five arbitrators as the arbitrator for the dispute in question. If the Administrator fails to select an
arbitrator within one week after receipt of the list, the claimant will then designate one of the five arbitrators for the dispute in question. 
 The
arbitration hearing will be held within seven days (or as soon thereafter as possible) after the picking of the arbitrator. No continuance of said hearing will be allowed without the mutual consent of the claimant and the Administrator. Absence from
or nonparticipation at the hearing by either party will not prevent the issuance of an award. Hearing procedures which will expedite the hearing may be ordered at the arbitrator’s discretion, and the arbitrator may close the hearing in his or
her sole discretion when he or she decides he or she has heard sufficient evidence to satisfy issuance of an award. 
 The arbitrator’s award will be
rendered as expeditiously as possible and in no event later than one week after the close of the hearing. 
 In the event the arbitrator finds that the
Administrator or the Employer has breached the terms of the Plan, he or she will order the Employer to pay to the claimant within two business days after the decision is rendered the amount then due the claimant, plus, notwithstanding anything to
the contrary in the Plan, an additional amount equal to 20% of the amount actually in dispute. This additional amount will constitute an additional benefit under the Plan. The award of the arbitrator will be final and binding upon the Parties.

 The award may be enforced in any appropriate court as soon as possible after its rendition. The Administrator will be considered the prevailing party in a
dispute if the arbitrator determines (1) that neither the Administrator nor the Employer has breached the terms of the Plan and (2) the claim by the claimant was not made in good faith. Otherwise, the claimant will be considered the
prevailing party. In the event that the Administrator is the prevailing party, the fee of the arbitrator and all necessary expenses of the hearing (excluding any attorneys’ fees incurred by the Administrator) including the fees of a
stenographic reporter, if employed, will be paid by the losing party. In the event that the claimant is the prevailing party, the fee of the arbitrator and all necessary expenses of the hearing (including all attorneys’ fees incurred by the
claimant in pursuing his or her claim and the fees of a stenographic reporter, if employed) will be paid by the Employer. 
 Notwithstanding the foregoing,
if the claim is for Disability benefits, the following rules apply: (1) the Administrator will not assert that a claimant has failed to exhaust administrative remedies if the claimant does not submit to arbitration, (2) any applicable
statute of limitations or other similar defense is tolled during the time the arbitration is pending, (3) the claimant may only submit to arbitration after exhausting the claims procedures described above, and (4) no fees or costs will be
imposed on the claimant as part of the arbitration (other than the claimant’s attorneys’ fees). 
 ARTICLE 12 
 MISCELLANEOUS 
 12.1 Successors 
 The rights and obligations of each Employer under the Plan will inure to the benefit of, and will be binding upon, the successors and assigns of the Employer. 

12.2 Trust 
 The Employers will be responsible for the payment of
all benefits under the Plan. At their discretion, the Employers may establish one or more grantor trusts for the purpose of providing for payment of benefits under the Plan. The trust or trusts may be irrevocable, but an Employer’s share of the
assets [Will there be any under this plan?] thereof will be subject to the claims of the Employer’s creditors. Benefits paid to the Participant from any such trust will be considered paid by the Employer for purposes of meeting the obligations
of the Employer under the Plan. 
 12.3 Employment Not Guaranteed 
 Nothing contained in the Plan nor any action taken hereunder will be construed as a contract of employment or as giving any Participant any right to continue in employment with the Employer or any other Affiliate. 
  

 8 

 12.4 Gender, Singular and Plural 
 All pronouns and variations thereof will be deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may require. As the context may require, the singular may be read as the
plural and the plural as the singular. 
 12.5 Captions 
 The captions of the articles and sections of the Plan are for convenience only and will not control or affect the meaning or construction of any of its provisions. 
 12.6 Validity 
 If any provision of the Plan is held invalid, void or unenforceable, the same will not affect, in any
respect whatsoever, the validity of any other provisions of the Plan. 
 12.7 Waiver of Breach 
 The waiver by AETI or the Administrator of any breach of any provision of the Plan by the Participant will not operate or be construed as a waiver of any subsequent
breach by the Participant. 
 12.8 Applicable Law 
 The
Plan will be governed and construed in accordance with the laws of Texas except where the laws of Texas are preempted by ERISA. 
 12.9 Notice

 Any notice or filing required or permitted to be given to the Administrator under the Plan will be sufficient if in writing and hand-delivered, or sent
by first class mail to the principal office of AETI, directed to the attention of the Administrator. The notice will be deemed given as of the date of delivery, or, if delivery is made by mail, as of the date shown on the postmark. 
 12.10 ERISA Plan 
 The Plan is intended to be an unfunded plan
maintained primarily to provide deferred compensation benefits for “a select group of management or highly compensated employees” within the meaning of Sections 201, 301 and 401 of ERISA and therefore to be exempt from Parts 2, 3 and 4 of
Title I of ERISA. AETI is the named fiduciary. 
 12.11 Statutes and Regulations 
 Any reference to a statute or regulation herein shall include any successor to such statute or regulation. 
 IN WITNESS
WHEREOF, AETI has duly adopted this Plan effective the 1st day of January, 2009. 
  

			
	AMERICAN ELECTRIC TECHNOLOGIES, INC.
		
	By:	 	  

		 	Secretary
		
	Dated:	 	  

  

 9

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