Document:

exv10w9

Exhibit 10.9

OPTION AGREEMENT

     THIS OPTION AGREEMENT (the “Agreement”), dated as of February 25, 2009, is made by
AEI, a Cayman Islands exempted company (the “Company”), for the benefit of the holders from
time to time (the “Noteholders”) of its outstanding 10% Subordinated PIK Notes due May 25,
2018 (the “Notes”).

WITNESSETH

     WHEREAS, the Company has agreed to offer the Noteholders an option to exchange their Notes for
ordinary shares, par value $0.002, of the Company (the “Shares”) upon the terms and subject
to the conditions set forth in this Agreement.

     NOW THEREFORE, in consideration of the mutual terms, conditions, representations, warranties
and agreements herein set forth, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

Section 1. Definitions.

A. Capitalized terms used but not defined herein, shall have the meanings provided in the Note
Purchase Agreement (defined below).

B. Unless the context otherwise requires, the terms defined in this Section 1, whenever used in
this Agreement shall have the respective meanings hereinafter specified and words in the singular
or in the plural shall each include the singular and the plural and the use of any gender shall
include all genders.

“Amendment to Note Purchase Agreement” means the Amendment to the Note Purchase Agreement
to be entered into between the Company and Noteholders holding at least 80% of the then outstanding
principal amount of all Notes (other than Notes owned by the Company or any other obligor of the
Notes) consenting to (i) an amendment to (a) allow the Company to issue Options entitling
Noteholders to exchange their Notes for Shares and acquire Notes in exchange for Shares upon the
exercise of such Options, in each case, on the terms and conditions set forth in this Agreement and
(b) eliminate the prohibition on Note repurchases by the Company subject to certain conditions;
(ii) a clarifying amendment to make clear that repurchases of Subordinated Debt permitted under the
Senior Credit Agreement are not prohibited under the terms of the Notes; and (iii) amendments to
the notice provision to (y) update AEI Services LLC’s mailing address and (z) provide for the
delivery of notices via e-mail.

“Consents” means (i) the Amendment to Note Purchase Agreement and (ii) the
Shareholders Consent.

“Note Purchase Agreement” means the Note Purchase Agreement, dated as of May 24, 2007,
among the Company and the purchasers identified therein, as amended by the Amendment to Note
Purchase Agreement and as may be hereafter further amended, supplemented or modified from time to
time.

“Option Commencement Date” shall mean the date on which the Company delivers notice to the
Noteholders that all requisite Consents have been obtained.

 

 

“Option Expiration Date” shall mean the date that is 12 months after the Option
Commencement Date.

“Shareholders Agreement” means the Second Amended and Restated Shareholders Agreement,
dated as of May 9, 2008, among the Company and the shareholders identified therein (as the same may
be amended, modified or supplemented from time to time).

“Shareholders Consent” means the consent of the Company’s shareholders party to the
Shareholders Agreement waiving the preemptive rights, related party and certain other provisions of
the Shareholders Agreement necessary to permit the exchange of Notes for Shares contemplated by
this Agreement.

Section 2. Issuance of Options; Transfers.

          A. On the terms and subject to the conditions hereof, effective upon receipt of the requisite
Consents, the Company hereby issues and grants to each Noteholder an irrevocable right and option
(the “Option”) to exchange any or all of the Notes held by such Noteholder for Shares of
the Company. The Options granted hereby will be evidenced by the Note Certificates representing
the Notes and no separate certificates in respect of the Options will be issued.

          B. The Options will be transferable only in connection with the transfer of the underlying
Notes and will be subject to same transfer restrictions as the Notes. The surrender for transfer
of any Note Certificate will also constitute the transfer of the Options associated with the Notes
evidenced by such certificates.

          C. No separate listing for the Options will be obtained.

Section 3. Exercise Date; Exercise of Options.

          A. Option Period; Exchange Ratio. The Options will be exercisable on and after the
Option Commencement Date and prior to 5:00 p.m., New York City time, on the Option Expiration Date
(the “Option Period”). A Noteholder that exercises its Option, in whole or in part, on the
Option Commencement Date will receive sixty-three (63) Shares (the Shares issuable upon exercise of
the Options being collectively referred to herein as the “Option Shares”) for each $1,000
principal amount of Notes exchanged. Thereafter, the exchange ratio shall be reduced in accordance
with the schedule attached hereto as Schedule A (which may be modified to reflect a
different Option Commencement Date in the event that the deadline for the Consent solicitation by
AEI is extended or shortened by AEI at its option). Any accrued but unpaid interest on Notes
surrendered for exchange shall likewise be exchanged for Shares at the same exchange rate as that
applicable with respect to the principal amount of such Notes. No Option shall be exercisable prior
to the Option Commencement Date or after 5:00 p.m., New York City time, on the Option Expiration
Date and Options shall only be exercisable to the extent and in the manner herein provided.

          B. Exercise. Subject to the terms and conditions set forth in this Section 3, Options
may be exercised at any time or from time to time on and after the Option Commencement Date until
5:00 p.m., New York City time, on the Option Expiration Date.

A Noteholder may exercise the Option granted hereby with respect to any or all of the Notes
registered in the name of such Noteholder on the books and records of the Company (or its transfer
agent) by

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delivering to the Company at its office referred to in Section 10 the following: (i) a written
notice of exercise, completed and submitted in accordance with the terms of such notice, in the
form attached hereto as Exhibit A (the “Notice of Exercise”), (ii) the Note
Certificate representing the Notes with respect to which the Option is being exercised, accompanied
by a duly executed transfer certificate, (iii) an executed copy of the Shareholder Joinder
Agreement (as defined in Section 8), if applicable and (iv) an executed Internal Revenue Service
Form W-8 or W-9, as applicable. In addition, as provided in Section 8, any Noteholder not party to
the Registration Rights Agreement that desires to become a party to such agreement, will also need
to deliver an executed copy of the Registration Rights Joinder Agreement. If a Noteholder chooses
to exercise the Option with respect to less than all of the Notes registered in the name of such
Noteholder (a “partial exercise”), such partial exercise must be in a minimum principal
amount $1,000 or an integral multiple thereof. A partial exercise does not preclude a subsequent
exercise provided all the terms and conditions to such exercise are met.

All rights of a Noteholder with respect to any Option that has not been exercised, prior to 5:00
p.m., New York City time, on the Option Expiration Date shall immediately cease and all such
unexercised Options shall be automatically cancelled and void.

          C. Payment of Taxes. The Company shall pay any and all Cayman Islands issue,
documentary or stamp taxes that may be payable in respect of any issuance or delivery of Option
Shares in exchange for the Notes. All other taxes that may be payable in respect of any issuance
of Option Shares shall be the responsibility of the applicable Noteholder.

          D. Delivery of Option Shares. Upon receipt of the items referred to in Section 3B,
the Company shall, as promptly as practicable, and in any event within three (3) Business Days
thereafter, issue to Noteholder or Noteholder’s designee the number of Option Shares to be issued
on exercise of the Option(s) and enter the name of Noteholder or Noteholder’s designee in the
register of members of the Company as the registered holder of such Option Shares. An Option shall
be deemed to have been exercised and such Option Shares shall be deemed to have been issued, and
such holder or any other Person so designated to be named therein shall be deemed to have become a
holder of record of such shares for all purposes, as of the date that such Notice of Exercise,
together with the other items required to be delivered pursuant to Section 3B, are received by the
Company. Any Notes surrendered upon exercise of Options shall be immediately retired and cancelled
by the Company and may not be re-issued.

          E. Legend on Option Shares. If certificates representing Option Shares are issued,
each certificate representing shares of Option Shares shall bear a legend substantially to the
following effect:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES HAVE BEEN
ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR
RESALE, AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY
APPLICABLE STATE SECURITIES LAWS, OR AVAILABILITY OF AN EXEMPTION
FROM THE REGISTRATION PROVISIONS OF

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THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE
SECURITIES LAWS.

IN ADDITION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH IN THE SECOND
AMENDED AND RESTATED SHAREHOLDERS AGREEMENT, DATED AS OF MAY 9,
2008, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, BY AND AMONG AEI
AND THE PARTIES THERETO, A COPY OF WHICH IS ON FILE IN THE OFFICE OF
THE COMPANY.”

The requirement that the above legend regarding the Securities Act be placed upon certificates
evidencing any Option Shares shall cease and terminate upon the occurrence of certain events set
forth in the Shareholders Agreement. Upon the occurrence of any such event requiring the removal of
a legend hereunder, the Company, upon the surrender of certificates containing such legend, shall,
at its own expense, deliver to the holder of any such Option Shares as to which the requirement for
such legend shall have terminated, one or more new certificates evidencing such Option Shares not
bearing such legend.

Section 4. Adjustment of Number of Option Shares Issuable Upon Exercise of an Option.

          A. Adjustment for Stock Splits, Stock Dividends, Recapitalizations. The number of
Option Shares issuable upon exercise of each Option shall be proportionately adjusted to reflect
any stock dividend, stock split, reverse stock split, recapitalization or the like affecting the
number of outstanding Shares that occurs after the date hereof.

          B. Adjustments for Reorganization, Consolidation, Merger. If after the date hereof,
the Company (or any other entity, the stock or other securities of which are at the time receivable
on the exercise of the Options), consolidates with or merges into another entity or conveys all or
substantially all of its assets to another entity, then, in each such case, the Noteholder, upon
any permitted exercise of an Option, at any time after the consummation of such reorganization,
consolidation, merger or conveyance, shall be entitled to receive, in lieu of the stock or other
securities and property receivable upon the exercise of the Option prior to such consummation, the
stock or other securities or property to which such Noteholder would have been entitled upon the
consummation of such reorganization, consolidation, merger or conveyance if such Noteholder had
exercised the Option immediately prior thereto, all subject to further adjustment as provided in
this Section 4. Prior to giving effect to any reorganization, consolidation, merger or conveyance,
the successor or purchasing entity in any such reorganization, consolidation, merger or conveyance
(if other than the Company) shall duly execute and deliver to the Noteholder a written
acknowledgment of such entity’s obligations under the Options and this Agreement.

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          C. Notice of Certain Events. Upon the occurrence of any event resulting in an
adjustment in the number of Option Shares (or other stock or securities or property) receivable
upon the exercise of the Options, the Company shall promptly thereafter (i) compute such
adjustment, (ii) prepare a certificate setting forth such adjustment and showing in detail the
facts upon which such adjustment is based, and (iii) mail copies of such certificate to each
Noteholder.

Section 5. Reservation of Option Shares.

The Company shall at all times reserve and keep available, free from preemptive rights, out of the
aggregate of its authorized but unissued Shares, the aggregate number of the Option Shares
deliverable upon the exercise of all outstanding Options, for the purpose of enabling it to satisfy
any obligation to issue the Option Shares upon the exercise of the Options as provided herein.

Section 6. No Impairment.

The Company shall not, by amendment of its memorandum and articles of association, or through
reorganization, consolidation, merger, dissolution, issuance or sale of securities, sale of assets
or any other voluntary action, willfully avoid or seek to avoid, directly or indirectly, the
observance or performance of any of the terms of the Options or this Agreement, and shall at all
times in good faith assist in the carrying out of all such terms and in the taking of all such
actions as may be necessary or appropriate in order to protect the rights of the Noteholders under
the Options and this Agreement against wrongful impairment. Without limiting the generality of the
foregoing, the Company: (i) shall not set or increase the par value of any Option Shares above the
amount payable therefor upon exercise, and (ii) shall take all actions that are necessary or
appropriate in order that the Company may validly and legally issue fully paid and nonassessable
Option Shares upon the exercise of the Options.

Section 7. Representations and Warranties by the Company.

The Company represents and warrants to the each Noteholder as follows:

          (i) The Company has the corporate power and authority to execute, deliver and perform this
Agreement, issue the Options and issue the Option Shares upon exercise of the Options. The
execution, delivery and performance of this Agreement by the Company and the issuance by the
Company of the Options and the Option Shares upon exercise of the Options have been duly and
validly authorized by all necessary corporate action on the part of the Company. This Agreement
has been duly executed and delivered by the Company and upon obtaining the Consents will constitute
a legally valid and binding obligation of the Company enforceable against the Company in accordance
with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium and
other similar Laws relating to creditors’ rights generally and by general equitable principles.

          (ii) Subject to obtaining the Consents, the execution, delivery and performance by the Company
of this Agreement and the issuance of the Options and the Option Shares upon exercise of the
Options do not and will not (i) conflict with, or constitute a breach or default under, its
Organizational Documents, (ii) violate, or constitute a breach or default under, or result in the
termination, acceleration or cancellation of, or the loss of benefit under, any Contract to which
the Company is a party or by which its assets may be bound or affected (whether upon lapse of time
and/or the occurrence of any act or event or otherwise) or (iii) assuming the representations and
warranties of each of the Noteholder set forth in their

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respective Notice of Exercise are accurate, violate any Law or Order applicable to the Company
or by which its assets may be bound, other than, in the case of clauses (ii) and (iii) above as
would not reasonably be expected to have, individually or in the aggregate, a material adverse
effect on the ability of the Company to perform its obligations under this Agreement or any Options
issued pursuant hereto.

          (iii) Assuming the representations and warranties of each of the Noteholders set forth in
their respective Notice of Exercise are accurate, no Approval is necessary to be obtained or made
by the Company in connection with the execution, delivery and performance of this Agreement or the
issuance of the Options or the Option Shares upon exercise of the Option.

          (iv) The Option Shares have been duly authorized and upon issuance will be validly issued,
fully paid and nonassessable and free of preemptive or other similar rights, other than the rights
set forth in the Shareholders Agreement.

          B. Survival. The representations and warranties of the Company shall survive the date
hereof.

Section 8. Registration Rights Agreement; Shareholder Agreement.

          A. As provided in Section 3B, upon the exercise of any Option, Noteholders that are not
already existing shareholders of the Company are required to execute and deliver to the Company a
joinder agreement evidencing such Noteholder’s accession to the Shareholders Agreement (the
“Shareholder Joinder Agreement”). Upon becoming a party to the Shareholders Agreement, a
Noteholder shall be entitled to all of the rights and benefits thereof and shall be subject to all
of the obligations of a shareholder thereunder.

          B. Upon the exercise of any Option, Noteholders will be entitled (but shall not be obligated)
to become a party to the Amended and Restated Registration Rights Agreement, dated as of December
29, 2006, among the Company and the shareholders identified therein (as the same may be amended,
modified or supplemented from time to time) (the “Registration Rights Agreement”). If a
Noteholder is not already, but wishes to become, a party to the Registration Rights Agreement, such
Noteholder will be required to execute and deliver to the Company a joinder agreement evidencing
such Noteholder’s accession to the Registration Rights Agreement (the “Registration Rights
Joinder Agreement”, and together with the Shareholder Joinder Agreement, the “Joinder
Agreements”).

          C. Upon the request of a Noteholder, the Company will provide to the Noteholder copies of the
most recently executed versions of the Registration Rights Agreement and Shareholders Agreement,
together with all amendments or other modifications thereto. Prior to becoming a party to the
Registration Rights Agreement and the Shareholder Agreement, a Noteholder shall have no rights
thereunder, including no rights to consent to any amendments that may be made after the date hereof
but prior to the date of such Noteholder becoming a party thereto.

          D. The Option Shares to be issued to an exercising Noteholder are being issued pursuant to an
exemption from registration under the Securities Act and applicable state securities laws and may
only be transferred, sold or otherwise disposed of if registered, or an exemption from registration
is available under the Securities Act and applicable state securities laws. Pursuant to the Notice
of Exercise, an exercising Noteholder will be required to make certain representations in relation
to the exemption from registration being relied on by the Company in connection with the issuance
of the

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Option Shares. In addition, the Option Shares are subject to the restrictions on transfer
set forth in the Shareholders Agreement.

Section 9. No Rights or Liabilities as Shareholder.

No holder, as such, of any Option shall be entitled to vote, receive dividends or be deemed the
holder of any Option Shares which may at any time be issuable on the exercise of an Option for any
purpose whatever, nor shall anything contained herein be construed to confer upon the holder of any
Option, as such, any of the rights of a shareholder of the Company or any right to vote for the
election of directors or upon any matter submitted to shareholders at any meeting thereof, or to
give or withhold consent to any corporate action (whether upon any recapitalization, issuance of
stock, reclassification of stock, change of par value or change of stock to no par value,
consolidation, merger, conveyance or otherwise), or to receive notice of meetings or other actions
affecting shareholders or to receive dividend or subscription rights, or otherwise, until such
Option shall have been exercised in accordance with the provisions hereof. Without limiting or
otherwise modifying Section 6 hereof, no provision hereof, in the absence of affirmative action by
a Noteholder to exchange its Notes for Option Shares shall give rise to any liability of such
holder as a shareholder of the Company, whether such liability is asserted by the Company or by
creditors of the Company.

Section 10. Notices.

All notices, requests, consents and other communications required or authorized hereunder to any
Party (each a “Notice”) shall be in writing and sent by hand, courier or overnight delivery
services, certified or registered mail, return receipt requested, with appropriate postage prepaid,
or facsimile or e-mail to the mailing address, e-mail address or facsimile number, as applicable,
set forth below or such other mailing address, e-mail address or facsimile number as may hereafter
be designated in writing by such Party to the other Parties; provided, however,
that a Notice of Exercise shall only be effective upon receipt by the Company of the Notice of
Exercise, along with all of the other required documents set forth in Section 3(C):

if to the Company:

AEI

Clifton House

75 Fort Street

P.O. Box 190GT

George Town, Grand Cayman

Cayman Islands

Facsimile No.: 345-949-4901

Attention: Director

Email: aei.investor.relations@aeienergy.com

with a copy (which shall not constitute notice) to:

AEI Services LLC

700 Milam, Suite 700

Houston, TX 77002

Facsimile No.: 713-345-5352

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Attention: General Counsel

Email: aei.investor.relations@aeienergy.com

with a copy (which shall not constitute notice) to:

Clifford Chance US LLP

31 W. 52nd Street

New York, NY 10019

Facsimile: 212-878-8375

Attention: G. David Brinton

Email: david.brinton@cliffordchance.com

if to a Noteholder:

at the registered mailing address, e-mail address or facsimile number of
such Noteholder set forth on the books and records of the Company (or its
transfer agent).

Any notices, requests, consents and other communications given hereunder as provided above shall be
deemed delivered (i) if sent by hand, courier or overnight delivery services, when delivered, (ii)
if sent by certified or registered mail, return receipt requested, with appropriate postage
prepaid, three (3) days after being deposited in the U.S. mail or (iii) if sent by facsimile or
e-mail, when sent; provided, however, that a Notice of Exercise shall only be
effective upon receipt by the Company of the Notice of Exercise, along with all of the other
required documents set forth in Section 3(C).

Section 11. Supplements, Amendments and Waivers.

This provisions of the Note Purchase Agreement governing amendments, supplements or waivers of the
provisions thereof shall apply mutatis mutandis to amendments supplements or waivers of any of the
terms and provisions of this Agreement; provided, that no supplement or amendment may be
made to Section 3, Section 4, Section 6, Section 14, or this Section 11 without a written
instrument signed by the Company and each Noteholder.

Section 12. Successors and Assigns.

Except as otherwise provided herein, the provisions of this Agreement shall be binding upon and
inure to the benefit of and be enforceable by the successors and permitted assigns of the Company
and Noteholders. Options issued under this Agreement may only be transferred together with the
underlying Notes as provided in Section 2 of this Agreement.

Section 13. Confidentiality.

          A. Each Noteholder (the “Recipient”), shall, and shall direct any Affiliate (which is
provided Confidential Information as permitted by Section 13(C)) and the directors, officers,
employees, agents, representatives, attorneys, accountants and advisors (collectively
“Agents”) of the Recipient or any such Affiliate to, treat confidentially all information
disclosed (whether on or after the date of this Agreement and whether in writing, verbally or by
any other means and whether directly or indirectly) by the Company or on the Company’s behalf to
Recipient or its Agents in connection with the current and

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future business and operations of the Company and its direct and indirect subsidiaries,
including, without limitation, any information relating to the Company’s and its subsidiaries’
operations, plans or intentions, know how, market opportunities and business affairs, as well as
any written memoranda, notes, analyses, reports, compilations, or studies prepared by or on behalf
of Recipient that contain or are derived from, such information or the recipient’s review thereof
(collectively “Confidential Information”).

          B. As used in this Agreement, the term “Confidential Information” excludes any information
that (i) is or becomes generally available to the public on a non-confidential basis other than as
a result of actions by the Recipient or its Agents in violation of this Section 13, (ii) is or
becomes available to the Recipient or its Agents on a non-confidential basis from a source other
than the Company or its Agents that is not prohibited from disclosing such information to the
Recipient or its Agents by a legal, contractual, fiduciary or other obligation to the Company or
another party or (iii) was independently developed by the Recipient without reference to the
Confidential Information.

          C. The Recipient shall not use the Confidential Information for any purpose other than to
decide whether to exercise the Option granted hereby. The Confidential Information shall be kept
confidential and shall not be disclosed by the Recipient and its Agents; provided, however, that
the Recipient may disclose any Confidential Information (i) to its Agents who need to know such
Confidential Information, provided that each Agent shall be informed of, and instructed to abide by
the confidentiality provisions of this Section 13, (ii) to the extent such information is already
in possession of the public or becomes available to the public, other than through any fault, act
or omission in breach of this confidentiality obligation of the Recipient, (iii) to the extent such
information is required to be disclosed by law or order of a court or governmental agencies with
proper jurisdiction, (iv) to the extent such information is required to be disclosed by applicable
laws, statutes, judicial processes, rules or regulations, including without limitation, the rules,
regulations or guidelines of securities exchanges or similar self-regulatory organizations to which
a disclosing party is or may become subject or (v) to any transferee or potential transferee of the
Option, provided that such transferee or potential transferee shall be informed of, and agrees to
abide by the confidentiality provisions of this Section 13.

          D. If the Recipient is requested or required by any governmental or regulatory authority to
disclose any Confidential Information (except in the course of routine examinations of the
Recipient or its Affiliates), it will provide the Company with prompt written notice of any such
request or requirement, unless notice is prohibited by law or by the rules governing the process
requiring such disclosure, in order to afford the Company time to seek an appropriate protective
order or other reliable remedy. Such Recipient will, and will advise its Representatives to,
reasonably cooperate with the Company in obtaining such protective order or other remedy but shall
not be required to take at its own expense any legal action or initiate any legal proceeding in
connection therewith. If no such protective order or other remedy is obtained, such Recipient will
disclose only that portion of the Confidential Information that in the reasonable opinion of its
counsel is legally required to be disclosed and will exercise all reasonable efforts to obtain
reliable assurance that confidential treatment will be accorded the Confidential Information.

Section 14. Termination.

This Agreement (other than Sections 3C and Sections 10 through 18, inclusive, and all related
definitions, all of which shall survive such termination) shall terminate at 5:00 p.m., New York
City time, on the Option Expiration Date; provided that if the requisite Consents are not obtained
this Agreement shall automatically terminate and be void ab initio.

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Section 15. Governing Law; Jurisdiction.

          A. THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH OF THE PARTIES
HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF ANY COURT OF THE STATE OF NEW
YORK LOCATED IN NEW YORK COUNTY, NEW YORK AND ANY FEDERAL COURT LOCATED IN NEW YORK COUNTY, NEW
YORK WITH RESPECT TO ANY PROCEEDING RELATING TO THIS AGREEMENT. FURTHER, EACH OF THE PARTIES
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION OR DEFENSE THAT IT MAY HAVE BASED ON
IMPROPER VENUE OR FORUM NON CONVENIENS TO THE CONDUCT OF ANY SUCH PROCEEDING IN ANY SUCH COURTS.
THE PARTIES AGREE THAT ANY OR ALL OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS
WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED AGREEMENT AMONG THE PARTIES IRREVOCABLY TO
WAIVE ANY OBJECTIONS TO VENUE OR TO CONVENIENCE OF FORUM. EACH OF THE PARTIES (ON BEHALF OF ITSELF
AND ITS AFFILIATES) AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING WILL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER
MANNER PROVIDED BY APPLICABLE LAW.

          B. To the extent that any Party has or hereafter may acquire any immunity from jurisdiction of
any court or from any legal process (whether through service or notice, attachment prior to
judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its
property, each Party hereby irrevocably waives such immunity in respect of its obligations with
respect to this Agreement.

          C. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT. EACH PARTY CERTIFIES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH ABOVE IN THIS PARAGRAPH 15.

Section 16. Third Party Beneficiaries.

This Agreement shall not benefit or create any right or cause of action in or on behalf of any
Person other than the Company, the Noteholders and their respective successors and permitted
assigns.

Section 17. Headings.

The headings in this Agreement are for convenience only and shall not affect the construction or
interpretation of this Agreement.

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Section 18. Entire Agreement.

This Agreement, together with the Exhibits, constitutes the entire agreement and understanding
between the Company and the Noteholders with respect to the subject matter hereof and shall
supersede any prior agreements and understandings between the Company and Noteholder with respect
to such subject matter.

[SIGNATURE ON THE FOLLOWING PAGE]

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IN WITNESS WHEREOF, the undersigned has caused this Agreement to be duly executed as of the day and
year first above written.

	 	 	 	 	 
	 	AEI

 	 
	 	By:  	_____________________________
 	 
	 	 	Name:  	
John G. Fulton
 	 
	 	 	Title:  	Chief Financial Officer 	 

 

 

	 	 	 	 	 

SCHEDULE A

TABLE OF EXCHANGE RATIOS

 

 

EXHIBIT A

NOTICE OF EXERCISE

                    , 20     

AEI

c/o AEI Services LLC

AEI Services LLC

700 Milam, Suite 700

Houston, TX 77002

Attention: Investor Relations

This notice of exercise (the “Notice of Exercise”) is provided pursuant to the Option
Agreement, dated as of February 25, 2009 (the “Agreement”), by AEI, a Cayman Islands
exempted company (the “Company”), for the benefit of the holders from time to time of the
options issued pursuant thereto. Certain capitalized terms used herein shall have the meanings
ascribed to them in the Agreement.

The undersigned hereby irrevocably elects to exercise the Option to exchange
$                                         principal amount of the Notes for Option Shares as provided in the
Agreement. In connection therewith, enclosed with this Notice of Exercise is the following:

	 	1.	 	Note Certificate No.                     representing Notes in the aggregate principal amount of
$                                        ;
	 
	 	2.	 	a duly executed transfer certificate with respect to the Notes being exchanged;
	 
	 	3.	 	either (check one):
	 
	 	 	 	                     a duly executed Joinder Agreement to the Shareholders Agreement
	 
	 	 	 	                     no Joinder Agreement is required because the undersigned is already a party to the
Shareholders Agreement;
	 
	 	4.	 	either (check one):
	 
	 	 	 	                     a duly executed Joinder Agreement to the Registration Rights Agreement
	 
	 	 	 	                     no Joinder Agreement is enclosed because the undersigned is already, or does
not wish to become, a party to the Registration Rights Agreement; and
	 
	 	5.	 	an Internal Revenue Service Form W-8 or W-9 (as applicable), properly completed and
executed in order to show the beneficial owner of the enclosed Note is not subject to U.S.
backup withholding tax.

 

 

The undersigned hereby requests that the Option Shares to be issued in exchange for the Notes be
registered as set forth below in the Company’s register of members:

	 	 	 
	Name:
	 	 
	 	 	 
	 
	 	 
	Address:
	 	 
	 	 	 
	 
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 
	 	 
	 	 	 

If the undersigned has chosen to exercise the Option with respect to less than all of the Notes
represented by the Notes Certificate(s) being delivered herewith, a new Note Certificate for the
balance of the unexchanged Notes should be issued and registered in the name of the undersigned and
delivered in accordance with the following instructions:

	 	 	 
	Address:
	 	 
	 	 	 
	 
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 
	 	 
	 	 	 

The undersigned hereby represents and warrants that the undersigned has full power and authority to
tender, exchange, assign and transfer the Notes tendered for exchange hereby and that when such
Notes are accepted for exchange by the Company, the Company will acquire good, marketable and
unencumbered title to the Notes, free and clear of all security interests, liens, restrictions,
claims, charges, encumbrances, conditional sales agreements or other obligations relating to the
sale, exchange or transfer thereof, and not subject to any adverse claim or right. In addition,
the undersigned hereby waives any and all rights with respect to the Notes (including, without
limitation, any existing or past defaults and their consequence in respect of the Notes and the
Note Purchase Agreement other than the right to receive the Option Shares issuable in exchange
therefor as provided in the Agreement) and releases and discharges the Company from any and all
claims the undersigned may have now, or may have in the future, arising out of, or related to, the
Notes or the Note Purchase Agreement, including without limitation any claims that the undersigned
is entitled to receive additional principal or interest payments with respect to the Notes or to
participate in any redemption or defeasance of the Notes. The undersigned hereby further represents
and warrants that (i) the Option Shares to be received by the undersigned will be acquired for
investment for the undersigned’s own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof in violation of applicable securities laws, and that the
undersigned has no present intention of selling, granting any participation in, or otherwise
distributing the same, (ii) the Option Shares have not been registered under the Securities Act and
acknowledges that the Option Shares must be held indefinitely unless they are subsequently
registered under the Securities Act or an exemption from such registration becomes available, (iii)
it will transfer its Option Shares only in compliance with state and federal securities laws and
the other restrictions set forth in the Agreement, (iv) it has carefully reviewed the Company’s
most recent disclosure materials and any amendments, supplements or additional disclosure materials
provided by the Company and has had the opportunity to make detailed inquiry concerning the
Company, its business and its personnel and the officers of the Company have made available to such
Noteholder any and all written information that it has requested and

 

 

have answered to such Noteholder’s satisfaction any inquiries made by it and such Noteholder and
its advisers, if any, have been given the opportunity to ask questions of, and receive answers
from, the Company concerning the terms and conditions of the Agreement and the transactions
contemplated hereby, and have been given the opportunity to obtain any additional information that
the Company possesses, or can acquire without unreasonable effort or expense, necessary to verify
the accuracy of the information supplied to it and (v) it is an “accredited investor” within the
meaning of Regulation D, Rule 501(a), promulgated by the Securities and Exchange Commission under
the Securities Act. The undersigned will, upon request, execute and deliver any additional
documents deemed by the Company to be necessary or desirable to complete the exchange, assignment
and transfer of the Notes tendered for exchange hereby.

 

 

This Notice of Exercise must be signed by the Noteholder exactly as its name appears on the Note
Certificate representing Notes. If the signature is by trustees, executors, administrators,
guardians, attorneys-in-fact, officers of corporations or others acting in a fiduciary or
representative capacity, please set forth full title.

SIGNATURE OF REGISTERED NOTEHOLDER OR AUTHORIZED SIGNATORY

      

Name of Noteholder:

 

 

(Please Print)

			
	Address:	 	  
 
 

			
	Federal Tax ID No.:	 	  

			
	Signature:	 	  

      

SIGNATURE
PAGE TO NOTICE OF EXERCISEexv10w10

Exhibit 10.10

INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT (this “Agreement”), dated as of [•], 2009, is by and
between AEI, a Cayman Islands company (the “Company”), and the director or officer of the Company
whose name appears on the signature page of this Agreement (“Indemnitee”).

RECITALS

          WHEREAS, the Company’s Amended & Restated Memorandum & Articles of Association (the “Charter”)
provides for the indemnification of officers and directors of the Company to the fullest extent
permitted by applicable law; and

          WHEREAS, the Board of Directors of the Company (the “Board” or the “Board of Directors”) has
determined that the Company should act to assure its directors and officers that there will be
increased certainty of such protection in the future; and

          WHEREAS, in recognition of Indemnitee’s need for substantial protection against personal
liability and in order to enhance Indemnitee’s continued service to the Company in an effective
manner, the Company wishes to provide in this Agreement for the indemnification of Indemnitee to
the fullest extent permitted by law and as set forth in this Agreement, and, to the extent
insurance is maintained, for the continued coverage of Indemnitee under the Company’s directors’
and officers’ liability insurance policies;

          WHEREAS, Indemnitee is willing to serve, to continue to serve and to take on additional
service for or on behalf of the Company on the condition that Indemnitee be so indemnified;

          NOW, THEREFORE, in consideration of the premises, the mutual covenants and agreements
contained herein and Indemnitee’s continuing to serve as a director of the Company, the parties
hereto agree as follows:

AGREEMENT

          In consideration of the premises and the covenants contained herein, the Company and
Indemnitee do hereby covenant and agree as follows:

          Section 1. Definitions. For purposes of this Agreement:

          (a) “Affiliate” shall mean any corporation, limited partnership, partnership, limited
liability company or any other legal entity in which the Company has an ownership interest, whether
directly or through its ownership of an interest in another Affiliate.

          (b) “Disinterested Director” shall mean a director of the Company who is not or was not a
party to the Proceeding in respect of which indemnification is being sought by Indemnitee.

          (c) “Expenses” shall include all attorneys’ fees and costs, retainers, court costs, transcript
costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding
costs, telephone and facsimile charges, postage, delivery service fees and all other disbursements
or expenses incurred in connection with prosecuting, defending, preparing to prosecute or defend,
investigating, participating, or being or preparing to be a witness in a Proceeding or asserting
claims in a Proceeding. Expenses also shall include Expenses incurred in connection with any
appeal resulting from any

 

 

Proceeding, including, without limitation, the premium, security for, and other costs relating
to any cost bond, supersede as bond, or other appeal bond or its equivalent.

          (d) “Indemnified Claim” shall have the meaning given to it in Section 3.

          (e) “Indemnification Period” shall have the meaning given to it in Section 15.

          (f) “Independent Legal Counsel” shall mean a law firm or a member of a firm selected by the
Board and approved by Indemnitee (which approval shall not be unreasonably withheld) that neither
is presently nor in the past five (5) years has been retained to represent: (i) the Company, any
Affiliate of the Company, Indemnitee or any corporation of which Indemnitee was or is a director,
officer, employee or agent, or any Affiliate of such a corporation, in any material matter, or (ii)
any other party to the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “Independent Legal Counsel” shall not include any person
who, under the applicable standards of professional conduct then prevailing, would have a conflict
of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s
right to indemnification under this Agreement. All Expenses of the Independent Legal Counsel
incurred in connection with acting pursuant to this Agreement shall be borne by the Company.

          (g) “Joint Venture Companies” shall mean any corporation, limited partnership, partnership,
limited liability company or any other legal entity of which the Company or an Affiliate is a
shareholder or holds an ownership interest in any amount.

          (h) “Losses” shall mean all losses, costs, claims, damages, liabilities, judgments, fines,
penalties and amounts paid in settlement in connection with any Proceeding.

          (i) “Officer or Director of the Company” shall mean a person who is or was a director,
officer, employee, agent or fiduciary of the Company, any Affiliate, any Joint Venture Company or
any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise
that such person is or was serving at the request of the Company.

          (j) “Person” shall mean any natural person, corporation, limited partnership, limited
liability company, general partnership, joint stock company, joint venture, association, company,
trust, bank, trust company, land trust, business trust or other organization, whether or not a
legal entity.

          (k) “Proceeding” includes any threatened, pending or completed action, claim, suit,
arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any
other proceeding, wherever brought, whether civil, criminal, administrative or investigative, that
is associated with Indemnitee’s being an agent of the Company.

          Section 2. Service by Indemnitee. Indemnitee agrees to begin or continue to serve
the Company, an Affiliate and/or a Joint Venture Company as an officer or director and agrees to
the indemnification provisions provided for herein. Notwithstanding anything contained herein,
this Agreement shall not create a contract of employment between the Company, its Affiliates or
Joint Venture Companies, as applicable, and Indemnitee, and the termination of Indemnitee’s
relationship with the Company, an Affiliate or a Joint Venture Company, as applicable, by either
party hereto shall not be restricted by this Agreement. This Agreement shall continue in full
force and effect notwithstanding Indemnitee ceasing to be an Officer or Director of the Company.
The Company hereby acknowledges that Indemnitee is relying upon this Agreement in serving as an
Officer or Director of the Company.

2

 

           Section 3. Indemnification. The Company shall (in the absence of (a) an intentional
act or omission, committed without a legal and legitimate business purpose, (b) the intentional
violation of statute, rules or law, or (c) obtaining personal gain, personal profit or advantage to
which Indemnitee is not entitled under applicable law regulating the purchase and sale of
securities) and to the fullest extent permitted by the laws of the Cayman Islands in effect on the
date hereof or as such laws may from time to time hereafter be amended whether by statute or
judicial decision to increase the scope of such permitted indemnification, indemnify and hold
Indemnitee harmless out of the assets of the Company against all liabilities, loss, damage, cost or
reasonable expense, Employee Retirement Income Security Act of 1974 excise taxes or penalties
(including but not limited to liabilities under contract, tort and statute, including statutes
regulating employee benefit plans and including any applicable law or regulation of any relevant
jurisdiction in which the Company is not incorporated and all reasonable legal and other costs and
expenses on a full indemnity basis properly payable) incurred or suffered by Indemnitee by or by
reason of any act done, conceived in or omitted in the conduct of the business of the Company,
Affiliates or Joint Venture Companies as applicable (the “Indemnified Claim”). To the extent that
Indemnitee is entitled to claim an indemnity pursuant to this Agreement in respect of amounts paid,
or to be paid, or discharged by him, the relative indemnity shall take effect as an obligation of
the Company to pay or discharge such amount as and when it becomes due as an obligation of
Indemnitee, or to reimburse Indemnitee making such payment or effecting such discharge. The
Company’s obligation to indemnify Indemnitee under this Section shall not be affected by any defect
in the election or appointment of Indemnitee to the office he or she occupies or has previously
occupied. Without diminishing the scope of the indemnification provided by this Section 3, the
rights of indemnification of Indemnitee provided hereunder shall include but shall not be limited
to those rights set forth hereinafter. In the event of any change in any applicable law, statute
or rule which limits the right of a Cayman Islands company to indemnify its directors or officers,
such change, to the extent not otherwise required by such law, statute or rule, shall have no
effect on this Agreement or the parties’ rights and obligations hereunder.

          Section 4. Action or Proceeding Other Than an Action by or in the Right of the
Company. Indemnitee shall be entitled to the indemnification rights provided herein if Indemnitee
was or is made a party or is threatened to be made a party to any pending, completed or threatened
Proceeding, other than an action by or in the right of the Company, by reason of (a) the fact that
Indemnitee is or was acting in such person’s official capacity as an Officer or Director of the
Company or (b) anything done or not done by Indemnitee in such capacity.

          Section 5. Mandatory Waiver of Claims Against Indemnitee. The Company shall not have
any claim or right of action against Indemnitee on account of any action taken by Indemnitee or the
failure of Indemnitee to take any action in the performance of his duties with or for the Company,
Affiliates or Joint Venture Companies, as applicable; provided, however, that this provision shall
not apply to:

	 	(a)	 	any intentional acts or omission, committed without a legal and legitimate
business purpose;
	 
	 	(b)	 	the intentional violation of statute, rules or law; or
	 
	 	(c)	 	claims based upon Indemnitee’s obtaining or retaining any personal gain,
personal profit or advantage to which Indemnitee is not legally entitled in violation
of any applicable law regulating the purchase and sale of securities.

          Section 6. Indemnification for Losses and Expenses of Party Who is Successful.
Notwithstanding any provision of this Agreement, to the extent that Indemnitee has been successful
on the merits or otherwise absolved in any Proceeding on any claim, issue or matter, Indemnitee
shall be

3

 

indemnified against all Losses or Expenses actually and reasonably incurred by Indemnitee or
on Indemnitee’s behalf in connection therewith. For purposes of this Section and without
limitation, the termination of any such claim, issue or matter by dismissal with or without
prejudice shall be deemed to be a successful resolution as to such claim, issue or matter.

          Section 7. Contribution in the Event of Joint Liability.

          (a) Whether or not the indemnification rights provided herein are available, in respect of any
threatened, pending or completed Proceeding in which the Company is jointly liable with Indemnitee
(or would be jointly liable if joined in such action, suit or proceeding), the Company shall pay,
in the first instance, the entire amount of any judgment or settlement of such Proceeding without
requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes
any right of contribution it may have against Indemnitee. The Company shall not enter into any
settlement of any action, suit or proceeding in which the Company is jointly liable with Indemnitee
(or would be jointly liable if joined in such action, suit or proceeding) unless such settlement
provides for a full and final release of all claims asserted against Indemnitee.

          (b) Without diminishing or impairing the obligations of the Company set forth in Section 7(a),
if, for any reason, Indemnitee shall elect or be required to pay all or any portion of any judgment
or settlement in any threatened, pending or completed Proceeding in which the Company is jointly
liable with Indemnitee (or would be jointly liable if joined in such action, suit or proceeding),
the Company shall contribute to the amount of Losses or Expenses actually and reasonably incurred
and paid or payable by Indemnitee in proportion to the relative benefits received by the Company
and all officers, directors or employees of the Company, other than Indemnitee, who are jointly
liable with him (or would be jointly liable if joined in such action, suit or proceeding), on the
one hand, and Indemnitee, on the other hand, from the transaction from which such Proceeding arose;
provided, however, that the proportion determined on the basis of relative benefit may, to the
extent necessary to conform to law, be further adjusted by reference to the relative fault of the
Company and all officers, directors or employees of the Company, other than Indemnitee, who are
jointly liable with Indemnitee (or would be jointly liable if joined in such action, suit or
proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the events that
resulted in such Losses or Expenses, as well as any other equitable considerations which the law
may require to be considered. The relative fault of the Company and all officers, directors or
employees of the Company other than Indemnitee who are jointly liable with him (or would be jointly
liable if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other
hand, shall be determined by reference to, among other things, the degree to which their actions
were motivated by intent to gain personal profit or advantage, the degree to which their liability
is primary or secondary, and the degree to which their conduct is active or passive.

          (c) The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims
of contribution which may be brought by officers, directors or employees of the Company who may be
jointly liable with Indemnitee.

          Section 8. Payment for Expenses of a Witness. Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee is, by reason of the fact that Indemnitee is or was
an Officer or Director of the Company, a witness in any Proceeding, the Company agrees to pay to
Indemnitee all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in
connection therewith.

          Section 9. Advancement and Reimbursement of Expenses and Costs.

4

 

          (a) Expenses actually and reasonably incurred in defending any civil, administrative or
criminal action or Proceeding for which indemnification is required pursuant to this Agreement
shall be advanced by the Company as they fall due or are incurred in advance of the final
disposition of such action or proceeding upon receipt of a written undertaking by or on behalf of
Indemnitee to repay such amount if it shall ultimately be determined that Indemnitee is not
entitled to be indemnified pursuant to this Agreement.

          (b) Except as otherwise provided herein, there shall be no right to advancement and
reimbursement with respect to claims, suits or other proceedings brought by Indemnitee against the
Company unless that claim, suit or proceeding was authorized in writing by the Board of Directors.

          (c) With respect to any such civil, administrative or criminal action or Proceeding as to
which Indemnitee reasonably promptly notifies the Company of the commencement thereof: (i) The
Company will be entitled to participate therein at its own expense; (ii) except as otherwise
provided below, to the extent that it may wish, the Company (jointly with any other indemnifying
party similarly notified) will be entitled to assume the defence thereof, with counsel selected by
the Company. After receipt of notice from the Company to Indemnitee of the Company’s election so
to assume the defence thereof, the Company will not be liable to Indemnitee under this Section 9
for any Expenses subsequently incurred by Indemnitee in connection with the defence thereof other
than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the
right to employ his or her own counsel in such civil, administrative or criminal action or
Proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its
assumption of the defence thereof shall be at the expense of Indemnitee unless (x) the employment
of counsel by Indemnitee has been authorized by the Company, (y) Indemnitee shall have reasonably
concluded that there is a conflict of interest between the Company and Indemnitee in the conduct of
the defence of such action, or (z) the Company shall not in fact have employed counsel to assume
the defence of such action, in each of which cases the fees and expenses of counsel employed by
Indemnitee shall be subject to indemnification pursuant to the terms of this Section 9. The
Company shall not be entitled to assume the defence of any civil, administrative or criminal action
or Proceeding brought in the name of or on behalf of the Company or as to which Indemnitee shall
have made the conclusion provided for in clause (y) above. The Company shall not be liable to
indemnify Indemnitee for any amounts paid in the settlement of any civil, administrative or
criminal action, claim or Proceeding effected without the Company’s written consent, nor shall the
Company be liable to indemnify Indemnitee for any amounts paid by such person without the notice to
the Company being given as set forth above in this subsection (c). The Company shall not settle
any civil, administrative or criminal action, claim or Proceeding in any manner that would impose
any limitation or non-Indemnified penalty on Indemnitee without Indemnitee’s written consent, which
consent shall not be unreasonably withheld.

          Section 10. Procedure for Determination of Entitlement to Indemnification.

          (a) When seeking indemnification under this Agreement (including, but not limited to, the
advancement of expenses pursuant to Section 9 hereof and contribution by the Company), Indemnitee
shall submit a written request for indemnification to the Company. Such request shall include
documentation or information which is reasonably necessary for the Company to make a determination
of Indemnitee’s entitlement to indemnification hereunder and which is reasonably available to
Indemnitee. The Secretary of the Company shall, promptly upon receipt of Indemnitee’s request for
indemnification, advise the Board that Indemnitee has made such request for indemnification.

          (b) The entitlement of Indemnitee to indemnification under this Agreement in respect of any
pending, contemplated or threatened Proceeding shall be determined in the specific case by one of
the following three methods, which shall be at the election of the Board of Directors (i) the Board
of Directors by a majority vote of the Disinterested Directors, whether or not they constitute a
quorum of

5

 

the Board of Directors, or (ii) by a committee of Disinterested Directors designated by a
majority vote of such directors, even though less than a quorum, or (iii) if there are no such
Disinterested Directors or if a quorum of Disinterested Directors so directs, by Independent Legal
Counsel in a written opinion delivered to the Board of Directors and the Indemnitee, subject to
review by the full Board in the event Indemnitee is dissatisfied with such opinion, the said review
and decision to be completed within sixty (60) days after Independent Legal Counsel furnishes his
or her opinion.

          (c) In the event the determination of entitlement is to be made by Independent Legal Counsel,
such Independent Legal Counsel shall be retained by the Board within thirty (30) days after notice
of any civil, administrative or criminal action, claim or Proceeding for which indemnification
pursuant to this Agreement is requested is submitted for consideration by Indemnitee.

          (d) If the determination made pursuant to Section 10(b) is that Indemnitee is not entitled to
indemnification to the full extent of Indemnitee’s request, Indemnitee shall have the right to seek
entitlement to indemnification in accordance with the procedures set forth in Section 11 hereof.

          (e) If the person or persons empowered pursuant to Section 10(b) hereof to make a
determination with respect to entitlement to indemnification shall have failed to make the
requested determination within sixty (60) days after receipt by the Company of such request, the
requisite determination of entitlement to indemnification shall, to the extent not in violation of
applicable law, be deemed to have been made and Indemnitee shall be absolutely entitled to such
indemnification, absent (i) fraud or misrepresentation by Indemnitee of a material fact in the
request for indemnification or (ii) a final judicial determination that all or any part of such
indemnification is expressly prohibited by law.

          (f) The termination of any Proceeding by judgment, order, settlement or conviction, or upon a
plea of nolo contendere or its equivalent, shall not, of itself, adversely affect
the rights of Indemnitee to indemnification hereunder except as may be specifically provided herein
or by applicable law.

          (g) For purposes of any determination of good faith hereunder, Indemnitee shall be deemed to
have acted in good faith if in taking such action Indemnitee relied on the records or books of
account of the Company, an Affiliate or a Joint Venture Company, including financial statements, or
on information supplied to Indemnitee by the officers of the Company, an Affiliate or a Joint
Venture Company in the course of their duties, or on the advice of legal counsel for the Company,
an Affiliate or a Joint Venture Company, or on information or records given or reports made to the
Company, an Affiliate or a Joint Venture Company by an independent certified public accountant or
by an appraiser or other expert selected with reasonable care by the Company, an Affiliate or a
Joint Venture Company. The Company shall have the burden of establishing the absence of good faith
by clear and convincing evidence. The provisions of this Section 10(g) shall not be deemed to be
exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to
have met the applicable standard of conduct set forth in this Agreement.

          (h) The knowledge and/or actions, or failure to act, of any director, officer, agent or
employee of the Company, an Affiliate or a Joint Venture Company shall not, to the extent not in
violation of applicable law, be imputed to Indemnitee for purposes of determining the right to
indemnification under this Agreement.

          Section 11. Dispute Resolution.

     (a) Any controversy or claim arising out of or relating to this Agreement, including any
disputes in respect of Indemnitee’s entitlement to indemnification hereunder, shall be settled by

6

 

arbitration administered by the American Arbitration Association under its Commercial
Arbitration Rules, to be convened in Houston, Texas, and judgment on the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof. Any arbitration pursuant to
this subsection (a), upon the request of any party, and if otherwise permitted, may be joined with
any arbitration proceeding pending in Houston, Texas arising out of or relating to any insurance
policy, or the breach thereof, which policy may provide coverage for the claims asserted under this
Agreement.

     (b) In any legal proceeding brought by Indemnitee to vindicate his or her rights hereunder:

	 	(i)	 	the burden shall be upon the Company to establish that
Indemnitee is not entitled to indemnification and the advancement and payment
of defence costs and expenses; and
	 
	 	(ii)	 	in the event that the Company is found to have breached its
obligations to Indemnitee, as provided in this Agreement, Indemnitee will be
entitled to recover all reasonable attorneys’ fees, costs and expenses incurred
in vindicating those rights.
	 
	 	(iii)	 	The Company and Indemnitee agree that they shall be precluded
from asserting that the procedures and presumptions of this Agreement are not
valid, binding and enforceable. The Company and Indemnitee further agree to
stipulate in any such court that the Company and Indemnitee are bound by all of
the provisions of this Agreement and are precluded from making any assertion to
the contrary.

          Section 12. Allocation Where Claims Include Identifiable and Non-Identifiable
Elements.

          In the event that a claim is asserted against Indemnitee, which includes both an Indemnified
Claim and a claim for which Indemnitee is not entitled to indemnification hereunder, the Company
shall provide a defence to both the Indemnified Claim and non-indemnified portions of the claim,
and shall indemnify fully for the covered portion of the claim. At the conclusion of any
Proceeding that adjudicates the matter, an allocation shall be made as between the Indemnified
Claim and the non-indemnified portion of the claim. Allocation to Indemnitee for the non-covered
portion of the loss is permitted only when and to the extent that Indemnitee’s non-covered acts and
omissions increased the defence costs and the amount paid to resolve the claim, whether in
settlement or after trial. Indemnitee shall not be liable to the Company for acts, defaults or
omissions of any other Person.

          Section 13. Defense of Claim by Company. Notwithstanding any provisions to the
contrary set forth herein, promptly after receipt by Indemnitee of notice of any claim or the
commencement of any Proceeding, Indemnitee will, if a claim for indemnity in respect thereof is to
be made against the Company under this Agreement, notify the Company of the commencement thereof;
but the omission to so notify the Company will not relieve it from any liability which it may have
to Indemnitee under this Agreement or otherwise unless and only to the extent that such omission
materially prejudices the Company.

          Section 14. Non-Exclusivity. The rights of indemnification and to receive advances
as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee
may at any time be entitled under or by reason of applicable law, any provision of the Company’s
Charter, any agreement, any vote of shareholders or any resolution of the Board of Directors or
otherwise.

7

 

          Section 15. Duration of Agreement. All agreements and obligations of the Company
contained herein shall continue during the period Indemnitee is an Officer or Director of the
Company and shall continue thereafter so long as Indemnitee may be or become subject to any
Proceeding (or any Proceeding commenced under Section 11 hereof) by reason of his status as an
Officer or Director of the Company, whether or not he is acting or serving in such capacity at the
time any liability or expense is incurred for which indemnification can be provided under this
Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by
the parties hereto and their respective successors (including any direct or indirect successor by
purchase, merger, consolidation or otherwise to all or substantially all of the business or assets
of the Company), assigns, spouses, heirs, devisee, executors, administrators or other personal and
legal representatives.

          Section 16. Insurance.

          (a) Subject to this Section 16, for so long as Indemnitee shall have consented to serve or
shall continue to serve as an Officer or Director of the Company and thereafter so long as
Indemnitee shall be subject to any possible Proceeding (such period being hereinafter referred to
as the “Indemnification Period”), the Company will use its best reasonable efforts to maintain in
full force and effect for the benefit of Indemnitee one or more valid, binding and enforceable
policies of directors’ and officers’ liability insurance from established and reputable insurers
providing, in all respects, coverage both in scope and amount which is no less favorable than that
presently provided. It is the intent of the Company that its indemnification obligations hereunder
be satisfied first out of the proceeds of such directors’ and officers’ liability insurance
purchased by the Company but should such insurance not cover the obligation, or should Indemnitee’s
obligations triggering such indemnification fall due prior to the time that an insurer is prepared
to make payment, then the Company shall satisfy such indemnification obligations from its assets to
the extent that the Company is obligated to do so hereunder, subject to the Indemnified Person’s
obligation of repayment set out in Article 9.

          (b) Notwithstanding subsection (a), the Company shall not be required to maintain said
policies if such insurance is not reasonably available or if it is in good faith determined by the
Board either that:

	 	(i)	 	the premium cost of maintaining such insurance is substantially
disproportionate to the amount of coverage provided thereunder and the premiums
paid by other corporations similarly situated; or
	 
	 	(ii)	 	the protection provided by such insurance is so limited by
exclusions that there is insufficient benefit to warrant the cost of
maintaining such insurance.

          To the extent that, and for so long as, the Company shall choose to continue to maintain any
policies of directors’ and officers’ liability insurance providing coverage for then serving
Officers or Directors of the Company during the Indemnification Period, the Company shall maintain
similar and equivalent insurance coverage, under the Company’s directors and officers insurance
coverage, for the benefit of all Indemnified Persons (as such term is defined in the Charter)
during the Indemnification Period. The Board of Directors of the Company will, from time to time,
in good faith review any decision not to maintain directors’ and officers’ liability insurance and
will purchase such insurance at any time that the conditions set forth in paragraphs (a) or (b),
above, cease to apply. Indemnitee, at his or her request, shall promptly be provided with a copy
of any insurance policy providing them with the coverage referred to in this Article.

          Section 17. Security. To the extent requested by Indemnitee and approved by a
majority of the Disinterested Directors, the Company may at any time and from time to time provide
security

8

 

to Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of
credit, funded trust or other collateral.

          Section 18. Exceptions. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement:

          (a) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee with
respect to proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of
defense, except with respect to proceedings brought to establish or enforce a right to
indemnification under this Agreement or any applicable statute or law, but such indemnification or
advancement of expenses may be provided by the Company in specific cases if the Board of Directors
has approved the initiation or bringing of such suit; or

          (b) Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by the Indemnitee
with respect to any proceeding instituted by Indemnitee to enforce or interpret this Agreement, if
a court of competent jurisdiction determines that the material assertions made by the Indemnitee in
such proceeding were not made in good faith or were frivolous; or

          (c) Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type
whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and
amounts paid in settlement) which have been paid directly to Indemnitee by an insurance carrier
under a policy of officers’ and directors’ liability insurance maintained by the Company, except
with respect to any excess beyond the amount paid under any insurance policy.

          (d) Claims Under Section 16(b). To indemnify Indemnitee for expenses and the payment of
profits arising from the purchase and sale by Indemnitee of securities in violation of Section
16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

          Section 19. Severability. In the event that this Agreement, or any portion of it, is
declared to be void or otherwise unenforceable, the validity of the remaining portions or
provisions of this Agreement shall not be affected thereby, and the void or otherwise unenforceable
portions of the Agreement shall be redrafted to conform with applicable law, while leaving the
remaining portions of this Agreement intact.

          Section 20. Counterparts. This Agreement may be executed in several counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same document.

          Section 21. Headings. Section headings are for convenience only and do not control
or affect meaning or interpretation of any terms or provisions of this Agreement.

          Section 22. Modification and Waiver. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by each of the parties hereto. No
waiver of any one or more of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provision hereof.

          Section 23. No Duplicative Payment. The Company shall not be liable under this
Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent
that Indemnitee has otherwise actually received such payment (net of Expenses incurred in
collecting such payment) under this Agreement, any insurance policy, contract, agreement or
otherwise.

9

 

          Section 24. Effective Date. This Agreement shall become effective upon consummation
of an offering, involving not less than $400 million of gross proceeds (to the Company and/or its
shareholders), upon the completion of which ordinary shares of the Company will be listed on the
New York Stock Exchange, the American Stock Exchange, Nasdaq, London Stock Exchange, Sao Paulo
Stock Exchange or any other stock exchange agreed by the shareholders of the Company.

          Section 25. Notices. All notices, requests, demands and other communications
provided for by this Agreement shall be in writing and shall be deemed to have been given (i) three
days from the post date when mailed in a registered or certified postpaid envelope in any general
or branch office of the United States Postal Service; (ii) one day from the date sent if sent by
Federal Express or other similar overnight courier service, addressed to the address of the parties
stated below or to such changed address as such party may have fixed by notice or (iii) immediately
if given by hand delivery.

          (a) If to Indemnitee, to the address appearing on the signature page hereof.

          (b) If to the Company, to:

AEI

Clifton House

75 Fort Street

P.O. Box 190GT

George Town, Grand Cayman

Cayman Islands

With a copy to :

AEI Services LLC

700 Milam, Suite 700

Houston, TX 77002

Attn: General Counsel

          Section 26. GOVERNING LAW. THE PARTIES AGREE THAT THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE CAYMAN ISLANDS WITHOUT
GIVING EFFECT TO THE CONFLICTS OF LAW PRINCIPLES THEREOF.

          Section 27. Entire Agreement. Subject to the provisions of Section 14
hereof, this Agreement constitutes the entire understanding between the parties and supersedes all
proposals, commitments, writings, negotiations and understandings, oral and written, and all other
communications between the parties relating to the subject matter of this Agreement.

[Signature Page Follows]

10

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and
year first above written.

	 	 	 	 	 
	 

	 	AEI	 	 
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	INDEMNITEE:
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 	 	Address:

[SIGNATURE PAGE TO AEI INDEMNIFICATION AGREEMENT]

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