Document:

EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (“Agreement”) between American Electric Technologies, Inc., a Florida corporation (the
“Company”), and Charles M. Dauber (“Executive”), is entered into with effect as of January 1, 2018 (the “Effective Date”). 

WHEREAS, the Company and Executive were previously parties to an Employment Agreement dated November 6, 2013 and an Amended Employment
Agreement effective January 1, 2014 (“Prior Employment Agreements”); 
 WHEREAS, the Company elected not to renew the Prior
Employment Agreements, which would have resulted in the termination of Executive’s employment and triggered certain of Executive’s rights thereunder if the parties had not elected to continue their relationship pursuant to this Agreement;

 WHEREAS, the Company desires to continue to employ Executive in an executive capacity, and Executive likewise desires to be employed by
the Company, subject to the terms hereof; 
 NOW, THEREFORE, in consideration the mutual promises, covenants, representations, obligations
and agreements contained herein, and for other valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: 
  

	1.	Term of Employment. The Company agrees to continue to employ Executive, and Executive agrees to continue to be employed by the Company, pursuant to this Agreement beginning on the Effective Date, and ending on
June 30, 2018, unless extended as provided in the next sentence or terminated sooner by the Company or Executive pursuant to Section 4. The Employment Period will automatically extend on a month to month basis if the Company’s Board
makes a good faith determination, and provides Executive written notice, that the Company is actively pursuing a Change of Control transaction which could be reasonably expected to result in a closing, as evidenced for example by: a letter
of intent, board approval to proceed with negotiations with a specific buyer (or buyers), negotiations on definitive agreements, formal due diligence subject to a process letter, or other such evidence.    Such extensions may not
exceed a total of six months and shall not extend more than thirty (30) days beyond the closing of a Change of Control event. The period from the Effective Date until the termination of Executive’s employment under this Agreement is
referred to as the “Employment Period.” 

  

	2.	Executive’s Duties; Board Membership; Other Interests; Duty of Loyalty. 

(a)    Positions. During the Employment Period, Executive shall continue to serve as President and Chief Executive
Officer (and/or in such other positions as the parties mutually may agree), with such customary duties and responsibilities as may from time to time be assigned to him by the Company’s Board of Directors (the “Board”), provided
that such duties are at all times consistent with the duties of such positions. Executive’s primary work location will be at the Company’s headquarters office in Houston, Texas. Executive agrees to serve without additional compensation, if
elected or appointed thereto, in one or more offices of the Company 

 
or any of the Company’s Affiliates. For purposes of this Agreement, the term “Affiliate” shall mean any entity that owns or controls, is owned or controlled by, or is under
common ownership or control with, the Company. Executive agrees to serve in the positions referred to herein and to perform all duties relating thereto diligently and to the best of his ability. 

(b)    Board Membership. During the Employment Period, and subject to election and/or reelection by the
Company’s shareholders, Executive will continue to serve as a member of the Company’s Board of Directors, without any additional compensation due him in connection with same. 

(c)    Other Interests. Executive agrees, during the period of his employment by the Company, to devote his full
business time and effort to the performance of duties for the Company and to the best of his abilities. Notwithstanding the foregoing or any other provisions of this Agreement, it will not be a breach or violation of this Agreement for Executive to
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 with the prior written approval of the Company’s Board of Directors, or (iv) manage personal investments, so long as such activities do not significantly interfere or significantly
detract from the performance of my responsibilities to the Company in accordance with this agreement. 
 (d)    Duty
of Loyalty. Executive acknowledges and agrees that Executive owes a fiduciary duty of loyalty, fidelity, and allegiance to use his reasonable best efforts to act at all times in the best interests of the Company. In keeping with these duties,
Executive shall make full disclosure to the Company of all business opportunities pertaining to the Company’s business and shall not appropriate for Executive’s own benefit business opportunities concerning the subject matter of the
fiduciary relationship. 
  

	3.	Compensation and Benefits. 

 (a)    Base Salary. As
compensation for Executive’s performance of Executive’s duties hereunder, the Company shall continue to pay to Executive a base salary of $350,000 per year (“Base Salary”), payable in accordance with the normal payroll
practices of the Company, less required deductions for state and federal withholding tax, social security and all other employment taxes and payroll deductions. 

(b)    Annual Cash Bonus. In addition to his Base Salary, Executive shall be eligible to receive for each full year
of employment during the Employment Period, a cash incentive payment (“Cash Bonus”) based on the achievement of performance goals set in advance by the Company’s Compensation Committee (“Company Performance
Objectives”) for the fiscal year. Executive’s Target Cash Bonus shall be $175,000 (“Target Cash Bonus”), but shall range from 0% to 100% of that amount based upon the satisfaction of the Company Performance Objectives and
subject to terms and conditions of the Company’s annual incentive program as in effect from time to time. In order for Executive to receive a Cash Bonus, the Company must meet 70% achievement of the Company Performance Objectives. The Cash
Bonus shall be paid to Executive no later than March 15th of the calendar year following the calendar year for which the Cash Bonus is earned. Executive must be employed through the end of the fiscal year for which the Cash Bonus is earned to be
eligible for the Cash Bonus. 

  
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 (c)    Annual Equity Bonus. Immediately following the Parties’
execution of this Agreement, the Company will award Executive 80,000 restricted stock units (“RSUs”) pursuant to the Company’s 2007 Employee Stock Incentive Plan (“Annual Equity Bonus”). The date of the grant of the award of
additional RSUs under the Annual Equity Bonus shall be deemed to be the first day of each fiscal year Executive remains employed by Company under this Agreement. Except as provided in Section 4 of this Agreement, RSU vesting shall be subject to
the Company’s standard vesting restrictions applicable to such equity grants, and the Company must meet 70% achievement of the Company Performance Objectives as a condition of vesting. To the extent Company Performance Objectives are not met
for the fiscal year in which the Annual Equity Bonus is awarded, the RSUs awarded for such fiscal year that do not otherwise vest pursuant to this Agreement shall be deemed to have been forfeited as of December 31st of the fiscal year for which the RSUs were awarded. 

(d)    Special Equity Grants. The Company will make the following “Special Equity Grants” of shares of
Company common stock or RSUs as indicated to Executive: 
 (i)    Immediately following the Parties’
execution of this Agreement, the Company will award Executive 41,667 RSUs pursuant to the Company’s 2007 Employee Stock Incentive Plan which will be subject to ratable monthly vesting (1/4 each month) commencing on March 31 and on the last
business day of each of the next three months of the Employment Period during which Executive remains employed by the Company; 

(ii)    In the event the Employment Period is extended beyond June 30, 2018, an additional 6,944
shares of Company stock will be issued to Executive on the last day of each full calendar month during which Executive remains employed by the Company beyond June 30, 2018. 

 

	 	(e)	Additional Change of Control Vesting 

 (i)    Upon
the occurrence of a Change of Control event during Executive’s employment hereunder, the Company will, contemporaneous with or immediately after the closing of the Change of Control event, at Executive’s option and dependent on the Company
having sufficient available cash to do so, either (i) pay Executive a lump-sum amount equal to the value of the Special Equity Grants at the time of the Change of Control event or (ii) grant
Executive all 41,667 vested shares of the Company’s stock, or (iii) give Executive a proportional combination of the above consistent with the Company’s available cash. 

(ii)    In the event a Change of Control event closes by June 30, 2018, and Executive’s
employment is terminated by the Company without cause prior to or contemporaneous with the closing of the Change of Control event, Executive will receive the shares (or payment) that would have been due pursuant to Section 3(e)(i) above as if
he had remained employed through June 30, 2018. 
 (iii)    Upon the occurrence of a Change of
Control event, any unvested portion of the Annual Equity Bonus will immediately vest, and the Company will, at Executive’s option and dependent on the Company having sufficient available cash to do so, either (i) pay Executive a lump-sum amount equal to the value of the full 80,000 shares of the 

  
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Company’s stock at the time of the Change of Control event or (ii) grant Executive the full 80,000 vested shares of the Company’s stock, or (iii) give Executive a proportional
combination of the above consistent with the Company’s available cash. 
  

	 	(f)	Other Benefits. 

 (i)    General. During the
Employment Period, Executive shall be eligible to participate in benefit and additional incentive compensation plans generally offered by the Company to similarly situated executives, as in effect from time to time, including, without limitation,
participation in the various health, retirement, life insurance, short-term and long-term disability insurance, parking and other executive benefit plans or programs provided to the executives of the Company in general, subject to the regular
eligibility requirements with respect to each of such benefit plans or programs, and such other benefits or perquisites as may be approved by the Committee during the Employment Period. Executive shall be entitled to vacation in accordance with the
Company’s plans, policies, programs and practices as in effect from time to time. 

(ii)    Automobile Allowance. The Company will provide Executive with an automobile allowance in the
amount of $1,000 per month. 
 (iii)    Business Expenses. The Company shall reimburse Executive
for all reasonable business expenses incurred by Executive in the performance of his duties, which expenses will be subject to the oversight of the Audit Committee of the Board in the normal course of business and will be compliant with the
applicable Reimbursement Plan (as defined below) of the Company. It is understood that Executive is authorized to incur reasonable business expenses for promoting the business of the Company, including, without limitation, reasonable expenditures
for travel, lodging, meals and client or business associate entertainment. Request for reimbursement for such expenses must be accompanied by appropriate documentation. 
  

	4.	Termination of Employment. 

 (a)    General. Executive’s
employment under this Agreement shall terminate upon the earliest to occur of: (i) the expiration of the term of this Agreement pursuant to Section 1 hereof; (ii) Termination due to Disability (as defined below);
(iii) termination of Executive’s employment by the Company for any reason other than Termination due to Disability; (iv) Executive’s death; and (v) termination of Executive’s employment by Executive for any reason. If
Executive’s employment ends for any reason, except as otherwise contemplated in this Section 4, Executive shall cease to have any rights to salary, bonus (if any) or other benefits, other than (A) the earned but
unpaid portion of Executive’s Base Salary through the date of termination or resignation, (B) any annual, long-term, or other incentive award (including, without limitation, Executive’s Annual Bonus) that relates to a completed fiscal
year or performance period, as applicable, and is payable in accordance with the terms of the applicable award (but not yet paid) on or before the date of termination or resignation, which shall be paid in accordance with the terms of such award,
(C) any unpaid expense or other reimbursements due to Executive, and (D) any other amounts or benefits required to be paid or provided by law or under any plan, program, policy or practice of the Company. Notwithstanding any provision in
this Agreement to the contrary, if not terminated sooner pursuant to this Section 4, Executive’s employment will terminate at the end of the Employment Period, which shall be treated as the termination of Executive’s employment by the
Company without Cause. 

  
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 (b)    Termination by Company without Cause or by Executive for Good
Reason. If Executive’s employment hereunder is terminated by the Company without Cause, or by Executive for Good Reason, then in addition to the payments and benefits described in Section 4(a) and subject to
Section 14 and Executive’s continuing compliance with Section 5 of this Agreement: 

(i)    the Company will pay Executive, no later than on the sixtieth (60th) day following the effective date of such termination of employment, a lump sum cash payment in an amount equal to (A) Executive’s annual Base Salary plus (B) an amount equal
to Executive’s Target Cash Bonus; 
 (ii)    the Company will reimburse Executive for the monthly
cost of maintaining health benefits for Executive (and Executive’s spouse and eligible dependents) as of the date of termination of employment under a group health plan of the Company for purposes of the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended (“COBRA”), excluding any short-term or long-term disability insurance benefits, for a period of 18 months following the date of the termination of employment, to the extent Executive
properly elects COBRA; provided, however, that if Executive obtains alternative health benefits from a subsequent employer, the benefits provided in this Section 4(b)(ii) will cease upon the commencement of
such health coverage; 
 (iii)    if not already fully vested, any unvested portion(s) of
Executive’s Annual Equity Bonus, and any unvested portion(s) of equity grants made to Executive in prior years pursuant to the 2007 Employee Stock Incentive Plan, will become fully vested immediately upon such termination of employment; and

 (iv)    in the event a Change of Control event closes by June 30, 2018 and Executive’s
employment is terminated by the Company without Cause prior to or contemporaneous with the closing of the Change of Control event, Executive shall also be eligible to receive the Special Equity Grant as set forth in Section 3(d)(v), subject to
the limitations and terms provided therein. 
 (c)    Termination of Employment by Executive for Any Reason Following
a Change of Control. In the event of a Change of Control event, Executive may terminate his employment hereunder for any reason after the closing of the Change of Control event by providing the Company written notice of termination, in
connection with which Executive will receive the payments, benefits and vesting set forth in Section 4(b) above and in the event the Change of Control event closed by June 30, 2018 and Executive terminated employment thereafter, Executive
shall also be eligible to receive the Special Equity Grant as set forth in Section 3(d)(v), subject to the limitations and terms provided therein. 

(d)    Notice of Termination. Any purported termination of Executive’s employment or this Agreement by the
Company or by Executive must be communicated by written notice of termination (“Notice of Termination”) to the other party hereto in accordance with Section 7 hereof. Any purported notice of non-extension pursuant to Section 1 will be deemed a Notice of 

  
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Termination for purposes of Section 4. Notice of Termination must include the effective date of termination of employment. Any Notice of Termination will be deemed to
also be Executive’s resignation as director and/or officer of the Company and each Affiliate of the Company, as well as from all other positions Executive holds with the Company or any of its Affiliates. Executive agrees to execute any and all
documentation of such resignations upon request by the Company, but he shall be treated for all purposes as having so resigned upon the effective date of termination (as set forth in the Notice of Termination), regardless of when or whether he
executes any such documentation. 
 (e)    No Duty to Mitigate. Executive will not be required to mitigate the
amount of any payment or benefit provided for in this Agreement by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Agreement be reduced by any compensation or benefit earned by Executive as
a result of employment by another employer, self-employment earnings, or by retirement benefits. 
  

	 	(f)	Section 280G. 

(i)    Notwithstanding any other provisions in this Agreement, in the event that any payment or benefit
received or to be received by Executive (including, without limitation, any payment or benefit received in connection with a change of control of the Company or the termination of Executive’s employment, whether pursuant to the terms of this
Agreement or any other plan, program, arrangement or agreement) (all such payments and benefits, together, the “Total Payments”) would be subject (in whole or part), to any excise tax imposed under Section 4999 of the Code, or
any successor provision thereto (the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, program, arrangement or agreement, the
Company will reduce the Total Payments to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax (but in no event to less than zero); provided, however, that the Total Payments will be reduced only
if (A) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state, municipal and local income and employment taxes on such reduced Total Payments and after taking into account the phase out of
itemized deductions and personal exemptions attributable to such reduced Total Payments), is greater than or equal to (B) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state,
municipal and local income and employment taxes on such Total Payments and the amount of Excise Tax to which Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions
and personal exemptions attributable to such unreduced Total Payments). 
 (ii)    In the case of a
reduction in the Total Payments, the Total Payments will be reduced in the following order: (1) payments that are payable in cash that are valued at full value under Treasury Regulation
Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (2) payments and benefits due in respect of any equity valued at full value
under Treasury Regulation Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury Regulation
Section 1.280G-1, Q&A 24), will next be reduced; (3) payments that are payable in cash that are valued at less than full value under 

  
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Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (4) payments and
benefits due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as such values are determined under
Treasury Regulation Section 1.280G-1, Q&A 24), will next be reduced; and (5) all other non-cash benefits not otherwise described in
clause (2) or (4) will be next reduced pro-rata. Any reductions made pursuant to each of clauses (1) through (4) above will be made
in the following manner: first, a pro-rata reduction of cash payment and payments and benefits due in respect of any equity not subject to Section 409A of the Code, and second, a pro-rata reduction of cash payments and payments and benefits due in respect of any equity subject to Section 409A of the Code as deferred compensation. 

(iii)    For purposes of determining whether and the extent to which the Total Payments will be subject to
the Excise Tax: (A) no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code
will be taken into account; (B) no portion of the Total Payments will be taken into account that, in the opinion of the Company, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code
(including, without limitation, by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments will be taken into account that, in the opinion of the Company, constitutes reasonable
compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as set forth in Section 280G(b)(3) of the Code) that is allocable to such reasonable
compensation; and (C) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will be determined by the Company in accordance with the principles of
Sections 280G(d)(3) and (4) of the Code. 
 (g)    Post-Termination Release. Notwithstanding any other
provisions of this Agreement, it will be a condition to Executive’s right to receive the amounts provided for in Section 4(b) and (c) of this Agreement that Executive (or Executive’s estate, as applicable)
will execute and deliver to the Company, and not revoke, an effective release of claims in favor of the Group in connection with same. 
  

	 	(h)	Certain Definitions. 

(i)    “Cause” shall mean the occurrence of any one of the following during
Executive’s employment hereunder, as determined in good faith by an express resolution of the independent members of the Board: 
  

	 	(1)	gross negligence or willful misconduct in the performance of, or Executive’s abuse of alcohol or drugs rendering Executive unable to perform, the material duties and services required for Executive’s position
with the Company, which neglect or misconduct, if remediable, remains unremedied for twenty (20) days following written notice of such by the Company to Executive; 

  
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	 	(2)	Executive’s conviction or plea of nolo contendere for any crime involving moral turpitude or a felony; 

  

	 	(3)	Executive’s commission of an act of embezzlement, deceit or fraud intended to result in personal and unauthorized enrichment of Executive at the expense of the Company or any of its Affiliates; 

 

	 	(4)	Executive’s (A) intentional material violation of the written policies of the Company or any of its Affiliates, (B) material breach of a material obligation of Executive to the Company pursuant to
Executive’s duties and obligations under the Company’s Bylaws, or (C) material breach of a material obligation of Executive to the Company or any of its Affiliates pursuant to this Agreement or any award or other agreement between
Executive and the Company or any of its Affiliates; 

  

	 	(5)	Executive’s failure to follow any lawful directive of the Board or other refusal to perform his duties hereunder; or 

  

	 	(6)	Executive engaging in activities on behalf of an enterprise which competes or plans to compete with the Company or any of its subsidiaries or affiliates. 

(ii)    “Good Reason” shall mean the existence of any of the following: 

 

	 	(1)	a material diminution in Executive’s authority, duties, or responsibilities from those applicable to him as of the Effective Date; 

 

	 	(2)	a material diminution in Executive’s Base Salary or Target Cash Bonus, except to the extent contemplated by Section 3(b) of this Agreement; 

 

	 	(3)	the Company’s requiring Executive to permanently relocate anywhere outside the greater Houston, Texas metropolitan area, except for required travel on the Company’s business to an extent substantially
consistent with Executive’s obligations under this Agreement; 

  

	 	(4)	the Company’s material breach of this Agreement; or 

  

	 	(5)	the failure by the Company to nominate Executive for election as a director of the Company during the Employment Period or to use all reasonable efforts to Cause Executive to be elected or
re-elected as a director of the Company during the Employment Period. 

  
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 Notwithstanding the foregoing or any other provision in this Agreement to the contrary, any
assertion by Executive of a Good Reason termination shall not be effective unless all of the following conditions are satisfied: (w) the conditions described in the preceding sentence giving rise to Executive’s termination of employment
must have arisen without Executive’s written consent; (x) Executive must provide written notice to the Company of such condition and Executive’s intent to terminate employment within 90 days after the initial existence of the
condition; (y) the condition specified in such notice must remain uncorrected for 15 days after receipt of such notice by the Company; and (z) the date of Executive’s termination of employment must occur within 120 days after the
initial existence of the condition. 
 (iii)    “Termination due to Disability” shall
mean Executive’s termination of employment as a result of Executive’s becoming incapacitated for a period of at least 180 days by accident, sickness or other circumstance that renders Executive mentally or physically incapable of
performing the material duties as Chief Executive Officer. 
  

	5.	(iv)    “Change of Control” shall have the meaning applicable to equity grants under the Company’s 2007 Employee Stock Incentive Plan and shall be deemed to occur if
(i) one or more persons or entities acting in concert acquire stock in the Company that constitutes, in the aggregate, more than 50 percent of 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) 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) there is a transfer of all or substantially all of
the assets associated with the Company’s U.S. operations or the Company’s global operations 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.) For a Change of Control to be deemed to have occurred, the transaction(s) creating the Change of Control must have closed.Confidentiality. The parties
acknowledge that during the Employment Period, the Company will disclose to Executive or provide Executive with access to trade secrets or confidential information, including 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 (“Confidential Information”) of the Company or its Affiliates, which the Company has a legitimate interest in protecting. As part of the consideration for the compensation and
benefits to be paid to Executive hereunder, and to protect the trade secrets and Confidential Information of the Company and its Affiliates that have been and will in the future be disclosed or entrusted to Executive, and as an additional incentive
for the Company to enter into this Agreement, the Company and Executive agree to the following obligations relating to Confidential Information. 

  

	 	(a)	 “Trade Secrets” are 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, including, but not limited to, technical or nontechnical data, formulae, patterns, compilations, programs,

  
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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. Executive will not use or disclose any Trade Secret before it has become generally known within the relevant industry through no fault of Executive. Executive agrees
that this promise shall never expire. Executive further promises that, while this Agreement is in effect and for 2 years after its termination, he 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 his own. 

  

	 	(d)	Promise Not to Solicit. To prevent Executive from inevitably breaking this promise, Executive further agrees that, while this Agreement is in effect and for twenty-four (24) months after its
termination: (1) as to any customer or supplier of the Company , its subsidiaries and affiliates, and their successors (“Group”) with whom Executive had dealings or about whom Executive acquired proprietary information during his
employment, he will not solicit or attempt to solicit (or assist others to solicit) the customer or supplier to do the same or similar business with any person or entity other than the Group; and (2) Executive will not solicit or attempt to
solicit (or assist others to solicit) for employment any person who is, or within the preceding twelve (12) months was, an officer, manager, employee, or consultant of the Group. 

 

	 	(e)	Promise Not to Engage in Certain Employment. Executive agrees that, while this Agreement is in effect and for twelve (12) months after its termination, he will not accept any competitive
employment or engage in any competitive activity, without the written consent of the Board, if the loyal and complete fulfillment of my duties would inevitably require Executive to reveal or utilize Trade Secrets or Confidential Information, as
reasonably determined by the Board. 

  

	 	(f)	 Return of Information. When Executive’s employment with the Company ends, he will promptly
deliver to the Company, or, at its written instruction, destroy, all documents, data, drawings, manuals, letters, notes, reports, 

  
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electronic mail, recordings, and copies thereof, of or pertaining to it or any other Group member in my possession or control. In addition, during his employment with the Company or the Group and
thereafter, Executive will meet with Company personnel and, based on knowledge or insights he gained during his employment with the Company and the Group, reasonably answer any questions they may have related to the Company or the Group.

  

	 	(g)	Promise to Discuss Proposed Actions in Advance. To prevent the inevitable use or disclosure of Trade Secrets or Confidential Information, Executive will, before he discloses or uses Trade Secrets or
Confidential Information and before he commences employment, solicitations, or any other activity that could possibly violate the promises herein, discuss his proposed actions with an attorney for the Company, who will advise Executive in writing
whether Executive’s proposed actions would be deemed by the Company to 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 Executive’s Company employment (except intellectual property that has no relation to the Group or any Group customer that he developed, purely on his own time and at his own expense), shall be the sole and exclusive property of the
Company, and Executive hereby assigns all of his rights, title, and interest in any such intellectual property to the Company. 

  

	 	(i)	Execution of Inventions Agreement. Executive will continue to be bound by and subject to the terms of the Company’s Assignment of Inventions agreement, which was executed in
connection with the Prior Employment Agreements. 

  

	 	(j)	Enforcement of This Section. The terms of this Section 5 shall survive the termination of this Agreement for any reason. Executive acknowledges that (a) his 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) Executive’s violation of any of this Section’s terms would irreparably harm the Company.
Accordingly, Executive agrees that, if he violates 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
him 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. 

  
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	6.	Survival. Sections 5, 6, 8, 9, 14, 15, 16, 17, 18 and 19, and such other provisions hereof as may so indicate shall survive and continue in
full force and effect in accordance with their respective terms, notwithstanding any termination of the Employment Period. 

  

	7.	Notices. Any notice provided for in this Agreement shall be in writing and shall be delivered (i) personally, (ii) by certified mail, postage prepaid, (iii) by Federal Express or other reputable courier
service regularly providing evidence of delivery (with charges paid by the party sending the notice), or (iv) by facsimile or a PDF or similar attachment to an email, provided that such facsimile or email attachment shall be followed within one
(1) business day by delivery of such notice pursuant to clause (i), (ii) or (iii) above. Any such notice to a party shall be addressed at the address set forth below (subject to the right of a party
to designate a different address for itself by notice similarly given): 

 If to the Company: 

American Electric Technologies, Inc. 

1250 Wood Branch Park Drive, Suite 600 

Houston, TX 77079 

Attention: Chairman of the Board 

With a copy to: 
 J. Hoke Peacock

 470 Orleans 

Beaumont, TX 77701 

If to Executive: 

Charles M. Dauber 

5102 Valerie St. 

Bellaire, TX 77401 

or a more recent address provided by Executive which is on file with the Company. 

 

	8.	Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements
or representations by or between the parties, written or oral, that may have related in any manner to the subject matter hereof. 

  

	9.	No Conflict. Executive represents and warrants that Executive is not bound by any employment contract, restrictive covenant, or other restriction preventing Executive from carrying out Executive’s
responsibilities for the Company, or that is in any way inconsistent with the terms of this Agreement. Executive further represents and warrants that Executive shall not disclose to the Company or induce the Company to use any confidential or
proprietary information or material belonging to any previous employer or others. 

  
 12 

	10.	Successors and Assigns. This Agreement shall inure to the benefit of, be enforceable by, and be binding on (x) Executive and his heirs, executors and personal representatives, and (y) the Company and
its successors and assigns. The obligations of Executive hereunder are personal and may not be assigned or delegated by him or transferred in any manner whatsoever, nor are such obligations subject to involuntary alienation, assignment or transfer,
except by will or the laws of descent and distribution. For the avoidance of doubt, and without limiting the generality of the foregoing, a termination of Executive’s employment by a successor or assign of the Company shall have the same legal
effect under this Agreement as if the Company itself had terminated such employment. 

  

	11.	Governing Law. This Agreement will be governed by the substantive laws of the State of Texas, without regard to conflicts of law, and by federal law where applicable. If any part of this Agreement is held to be
invalid or unenforceable, the remaining provisions of this Agreement will not be affected in any way. 

  

	12.	Amendment and Waiver. The provisions of this Agreement may be amended or waived only with the prior written consent of the Company and Executive, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or enforceability of this Agreement. 

  

	13.	Withholding. All payments and benefits under this Agreement are subject to withholding of all applicable taxes. 

  

	14.	 Code Section 409A. This Agreement is intended to comply with the requirements of
Section 409A of the Code, and shall be interpreted and construed consistently with such intent. The payments to Executive pursuant to this Agreement are also intended to be exempt from Section 409A of the Code to the maximum extent
possible, under either the separation pay exemption pursuant to Treasury regulation §1.409A-1(b)(9)(iii) or as short-term deferrals pursuant to Treasury regulation
§1.409A-1(b)(4), and for such purposes, each payment to Executive under this Agreement shall be considered a separate payment. In the event the terms of this Agreement would subject Executive to taxes or
penalties under Section 409A of the Code (“409A Penalties”), the Company and Executive shall cooperate diligently to amend the terms of the Agreement to avoid such 409A Penalties, to the extent possible. To the extent any
amounts under this Agreement are payable by reference to Executive’s “termination of employment” such term and similar terms shall be deemed to refer to Executive’s “separation from service,” within the meaning of
Section 409A of the Code. Executive hereby agrees to be bound by the Company’s determination of its “specified employees” (as such term is defined in Section 409A of the Code) provided such determination is in accordance
with any of the methods permitted under the regulations issued under Section 409A of the Code. Notwithstanding any other provision in this Agreement, to the extent any payments made or contemplated hereunder constitute nonqualified deferred
compensation, within the meaning of Section 409A, then (i) each such payment that is conditioned upon Executive’s execution of a release and that is to be paid or provided during a designated

  
 13 

	 	
period that begins in one taxable year and ends in a second taxable year, shall be paid or provided in the later of the two taxable years and (ii) if Executive is a specified employee
(within the meaning of Section 409A of the Code) as of the date of Executive’s separation from service, each such payment that is payable upon Executive’s separation from service and would have been paid prior to the six-month anniversary of Executive’s separation from service, shall be delayed until the earlier to occur of (A) the first day of the seventh month following Executive’s separation from service and
(B) the date of Executive’s death, if such delay is legally required to comply with Section 409A. Any reimbursement payable to Executive pursuant to this Agreement shall be conditioned on the submission by Executive of all expense
reports reasonably required by Employer under any applicable expense reimbursement policy, and shall be paid to Executive within 30 days following receipt of such expense reports, but in no event later than the last day of the calendar year
following the calendar year in which Executive incurred the reimbursable expense. Any amount of expenses eligible for reimbursement, or in-kind benefit provided, during a calendar year shall not affect the
amount of expenses eligible for reimbursement, or in-kind benefit to be provided, during any other calendar year. The right to any reimbursement or in-kind benefit
pursuant to this Agreement shall not be subject to liquidation or exchange for any other benefit. 

  

	15.	Clawbacks. The payments to Executive pursuant to this Agreement are subject to forfeiture or recovery by the Company or other action pursuant to any clawback or recoupment policy that the Company may adopt from
time to time, including, without limitation, any such policy or provision that the Company has included in any of its existing compensation programs or plans or that it may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer
Protection Act and implementing rules and regulations thereunder, or as otherwise required by law. 

  

	16.	Cooperation. Executive agrees, during and after the Employment Period, without limitation as to time, to provide information, assistance and cooperation to the Company and its Affiliates, including but not
limited to the transition of his most recent role and his attendance and truthful testimony with respect to the Company’s or its Affiliates’ investigation, analysis, resolution, defense and/or prosecution of any existing and/or future
claims, disputes or disagreements with respect to any and all matters about which Executive has knowledge, or should have knowledge, by virtue of his employment with the Company or otherwise. Such assistance and cooperation shall be provided by
Executive without fee or charge. The Company will take reasonable steps to ensure that such assistance (including any assistance contemplated pursuant to Section 5) shall be given during regular business hours at locations and times mutually
agreed upon by Executive and the Company, except with respect to mandated court appearances for which Executive will make himself available upon reasonable notice. Executive shall be entitled to receive prompt reimbursement for all reasonable travel
expenses incurred by him in accordance with such cooperation, provided that Executive properly accounts for such expenses in accordance with the Company’s policies and procedures. 

 

	17.	Company Policies. Executive shall be subject to additional policies of the Company and its Affiliates as they may exist from
time-to-time, including, without limitation, policies with regard to stock ownership by senior executives and policies regarding trading of securities.

  
 14 

	18.	Legal Fees. The Company shall reimburse Executive for all reasonable legal fees and expenses incurred by Executive in connection with the negotiation, drafting and review of this Agreement and any ancillary
documents entered into contemporaneously with the execution of this Agreement. 

  

	19.	Indemnification. Executive will be indemnified by the Company as provided in the Company’s Bylaws and Certificate of Incorporation, and pursuant to applicable law. The obligations under this section shall
survive termination of the Employment Period. During the Employment Period and thereafter (with respect to events occurring during the Employment Period), the Company also shall provide Executive with coverage under its current directors’ and
officers’ liability policy to the same extent that it provides such coverage to its other executive officers. 

20.    Counterparts. This Agreement may be executed in two or more counterparts, each of which will be an original
and all of which together will constitute one and the same instrument. A duplicate of a signed original shall have the same legal effect as an original. 

[Remainder of Page Left Blank; Signature Page Follows] 

  
 15 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on May 7th, 2018 with
effect as of the date first written above. 
  

			
	Executive
	
	 /s/ Charles M. Dauber

	Charles M. Dauber
	
	American Electric Technologies, Inc.
		
	By:	 	 /s/ Neal Dikeman

		 	Neal Dikeman
		 	Chairman of the Compensation CommitteeEX-10.1

 Exhibit 10.1 

DORMAN PRODUCTS, INC. 
 NON-QUALIFIED STOCK OPTION AWARD 
 This is a Non-Qualified
Stock Option Award (this “Award”) dated [                        ] (the “Grant Date”) from Dorman Products,
Inc. (the “Company”) to [                        ] (the “Optionee”). 

1. Grant of Option. Subject to the terms and conditions set forth herein and in the Dorman Products, Inc. 2018 Stock Option and Stock
Incentive Plan (the “Plan”), the Company hereby grants to the Optionee a non-qualified stock option to purchase [            ] shares of
Common Stock (the “Option”) at a price of $[        ] per Share (the “Exercise Price”) effective as of the Grant Date. 

2.Vesting Dates. 
 (a) The
Option shall vest and become exercisable as follows: 
  

			
	 Vesting Date:
	  	Percent of Award Vested & Exercisable:
		  	
		  	
		  	

 (b) In addition, upon a Change in Control, 100% of the unvested portion of the Option shall vest and become
exercisable. 
 (c) In addition, upon the Optionee’s termination of employment for any of the following reasons, the unvested portion
of the Option shall vest and become exercisable as indicated: 
 (i) 100% as of the date of Optionee’s death; or 

(ii) 100% as of the date of Optionee’s termination of employment due to Disability. 

Except as provided above, upon the termination of employment of the Optionee, any unvested portion of the Option will immediately and
automatically, without any action on the part of the Company, be forfeited and cancelled. 

  
 1 

 3. Termination of the Option. 

(a) The Option shall remain exercisable until the [    ] anniversary of the Date of Grant (the “Expiration
Date”), unless it is terminated at an earlier date pursuant to the provisions of this Award or the Plan. 
 (b) In the event of
termination of the Optionee’s employment, the Option, to the extent vested as of the date thereof (including pursuant to Paragraphs 2(b) or 2(c) above) shall terminate immediately after the first to occur of: (i) the Expiration Date;
(ii) one year after termination of the Optionee’s employment on account of death or Disability; (iii) 30 days after termination of the Optionee’s employment for any reason other than on account of death, Disability or for Cause; and
(iv) immediately upon termination of the Optionee’s employment for Cause. 
 4. Automatic Exercise. If the Option remains
unexercised, in whole or in part, immediately before the time at which the Option is scheduled to expire in accordance with the terms and conditions of this Award and the Plan, the Option shall be deemed automatically exercised in accordance with
Paragraph 7(i)(ii) of the Plan immediately before the time at which the Option is scheduled to expire, if the Option satisfies the following conditions: 

(a) The Option is covered by a then current registration statement under the 1933 Act. 

(b) The last reported sale price of a Share on the principal exchange on which Shares are listed on the date of determination, or if such date
is not a trading day, the last preceding trading day, exceeds the Exercise Price by such amount as may be determined by the Committee or its delegate from time to time. Absent a contrary determination, such excess per Share shall be $0.01. 

(c) The Optionee’s employment has not been terminated by the Company for Cause, and, immediately before the time at which such Option is
scheduled to expire, there is no basis for a termination of employment by the Company for Cause. 
 An Option subject to this Section 4 shall be
exercised via cashless exercise, such that subject to the other terms and conditions of the Plan, following the date of exercise, the Company shall deliver to the Optionee Shares having a Fair Market Value, on the exercise date, equal to the excess,
if any, of (A) the Fair Market Value of the Shares issued pursuant to the exercise of the Option, over (B) the sum of (1) the aggregate Exercise Price for the Shares issued pursuant to the exercise of the Option, plus (2) the
applicable tax withholding amounts (as determined pursuant to Paragraph 15 of the Plan) for such exercise; provided that in connection with such cashless exercise that would not result in the issuance of a whole number of Shares, the Company shall
pay cash in lieu of any fractional Share. 
 5. Method of Exercise. The Optionee may exercise the Option by providing written
notice to the Company stating the election to exercise the Option. Such written notice shall be signed by the Optionee and shall be hand delivered, e-mailed, tele-copied or mailed first class postage prepaid
to the attention of the Secretary or Assistant Secretary of the Company or such other person as may be designated by the Company. Each such exercise shall be irrevocable when given. Each notice of exercise must (i) specify the Option being
exercised; and (ii) if applicable, include a statement of preference (which shall be binding on and irrevocable by the Optionee but shall not be binding on the Committee) as to the manner in which payment of the Exercise Price to the Company
shall be made. 

  
 -2- 

 6. Payment for Shares. Full payment for Shares purchased upon the exercise of an Option
may be made in any combination of: (i) cash, (ii) by check payable to the order of the Company; (iii) by the delivery of shares of Common Stock then owned by the Optionee (or by attestation of such ownership) in accordance with Paragraph
7(g)(iii) of the Plan; or (iii) via cashless exercise in accordance with Paragraph 7(g)(iv) of the Plan. 
 7. Change in Control.
In the event of a Change in Control, the Committee may take such actions with respect to the Option as it deems appropriate pursuant to the Plan. 

8. Nontransferability of Option. The Option may not be transferred or assigned by the Optionee otherwise than by will or the laws of
descent and distribution or be exercised during the Optionee’s lifetime other than by the Optionee or for the Optionee’s benefit by the Optionee’s
attorney-in-fact or guardian; provided, however, that the Committee may, in its discretion, permit the Option to be transferred, in whole or in part, to one or more
transferees and exercised by any such transferee if such transferee is a Family Member with respect to the Optionee. Any attempt at assignment, transfer, pledge or disposition of the Option contrary to the provisions hereof or the levy of any
execution, attachment or similar process upon the Option shall be null and void and without effect. Any exercise of the Option by a person other than the Optionee shall be accompanied by appropriate proofs of the right of such person to exercise the
Option. 
 9. Securities Laws. The Committee may from time to time impose any conditions on the exercise of the Option as it deems
necessary or appropriate to comply with the then-existing requirements of the 1933 Act or the 1934 Act, including Rule 16b-3 (or any similar rule) of the Securities and Exchange Commission. If the listing,
registration or qualification of Shares issuable on the exercise of the Option upon any securities exchange or under any federal or state law, or the consent or approval of any governmental regulatory body is necessary as a condition of or in
connection with the purchase of such Shares, the Company shall not be obligated to issue or deliver the certificates representing the Shares otherwise issuable on the exercise of the Option unless and until such listing, registration, qualification,
consent or approval shall have been effected or obtained. If registration is considered unnecessary by the Company or its counsel, the Company may cause a legend to be placed on such Shares calling attention to the fact that they have been acquired
for investment and have not been registered. 
 10. Issuance of Shares. Subject to the provisions of Section 9 and 11 hereof, a
certificate for the Shares issuable on the exercise of the Option shall be delivered to the Optionee or to the Optionee’s personal representative, heir or legatee as soon as administratively practicable following exercise and payment for the
Shares. The Company may satisfy its obligation to deliver Shares following the exercise of the Option by arranging for the recording of Optionee’s ownership of Shares issuable on the exercise of the Option on a book entry recordkeeping system
maintained on behalf of the Company. Only whole Shares shall be issuable upon exercise of the Option. 

  
 -3- 

 11. Rights Prior to Exercise. The Optionee shall not have any right as a shareholder with
respect to any Shares subject to this Option until the Option shall have been exercised in accordance with the terms of the Plan and the Award and the Company shall have delivered the Shares. In the event that the Optionee’s termination of
employment by the Company is for Cause, upon a determination by the Committee, the Optionee shall automatically forfeit all Shares otherwise subject to delivery upon exercise of an Option but for which the Company has not yet delivered the Shares,
upon refund by the Company of the Exercise Price (to the extent paid). 
 12. Status of Option; Interpretation. The Option is intended
to be a non-qualified stock option. Accordingly, it is intended that the transfer of property pursuant to the exercise of the Option be subject to federal income tax in accordance with section 83 of the
Code. The Option is not intended to qualify as an incentive stock option within the meaning of section 422 of the Code. The interpretation and construction of any provision of this Option or the Plan made by the Committee shall be final and
conclusive and, insofar as possible, shall be consistent with the intention expressed in this Section 12. 
 13. Option Not to Affect
Employment. The Option granted hereunder shall not confer upon the Optionee any right to continue in service as an employee, officer or director of the Company or any subsidiary of the Company. 

14. Miscellaneous. 
 (a)
The address for the Optionee to which notice, demands and other communications to be given or delivered under or by reason of the provisions hereof shall be the address contained in the Company’s personnel records, or such other address as the
Optionee may provide to the Company by written notice. 
 (b) This Award may be executed in one or more counterparts all of which taken
together will constitute one and the same instrument. 
 (c) The validity, performance, construction and effect of this Award shall be
governed by the laws of the Commonwealth of Pennsylvania, without giving effect to principles of conflicts of law. 
 (d) The Optionee
hereby irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the courts of the Commonwealth of Pennsylvania and of the United States of America, in each case located in Philadelphia, Pennsylvania, for any actions, suits
or proceedings arising out of or relating to this Award and the transactions contemplated hereby (“Litigation”) and agrees not to commence any Litigation except in any such court, and further agrees that service of process, summons, notice
or document by U.S. registered mail to his respective address shall be effective service of process for any Litigation brought against him in any such court. Each party hereby irrevocably and unconditionally waives any objection to the laying of
venue of any Litigation in the courts of the Commonwealth of Pennsylvania or of the United States of America, in each case located in Philadelphia, Pennsylvania, and hereby further irrevocably and unconditionally waives and agrees not to plead or
claim in any such court that any Litigation brought in any such court has been brought in an inconvenient forum. 

  
 -4- 

 15. Withholding of Taxes. Whenever the Company proposes or is required to deliver or
transfer Shares in connection with the exercise of the Option, the Company shall have the right to (a) withhold Shares subject to the Optionee’s exercise of the Option as provided in Paragraphs 7(g)(iv) and 15 of the Plan, (b) require
the Optionee to remit to the Company an amount sufficient to satisfy any federal, state and/or local withholding tax requirements prior to the delivery or transfer of any certificate or certificates for such Shares or (c) take whatever action
it deems necessary to protect its interests with respect to tax liabilities. 
 16. Repayment. This Option shall be subject to any
repayment or clawback policy of the Company that is currently in effect or that is hereinafter adopted. 
 17. Incorporation of Plan
Terms. This Award is subject to the terms and conditions of the Plan. Such terms and conditions of the Plan are incorporated into and made a part of this Award by reference. In the event of any conflicts between the provisions of this Award and
the terms of the Plan, the terms of the Plan will control. In the event, however, of any conflict between the provisions of this Award or the Plan and the provisions of an employment or
change-in-control agreement between the Company and the Optionee, the provisions of the latter shall prevail, to the extent consistent with the Plan. Capitalized terms
used but not defined in this Award shall have the meanings set forth in the Plan unless the context clearly requires an alternative meaning. 

IN WITNESS WHEREOF, the Company has granted this Award on the day and year first above written. 

 

			
	DORMAN PRODUCTS, INC.

  

			
	BY:	 	  

		 	

 I hereby acknowledge receipt of a copy of the forgoing Award and the Plan and, having read them hereby, signify my
understanding of, and my agreement with, their terms and conditions. I accept this Option in full satisfaction of any previously written or verbal promises made to me by the Company with respect to option grants. 

 

					
	  
	 		  	  

	(Name)	 		  	(Date)

  
 -5-

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