Exhibit 10.12

 

CHENIERE ENERGY, INC. 2003 STOCK INCENTIVE PLAN

 

RESTRICTED STOCK GRANT

 

1. Grant of Restricted Shares. Cheniere Energy, Inc., a Delaware corporation
(the “Company”), hereby grants to                                 
(“Participant”) all rights, title and interest in the record and beneficial
ownership of                                  (            ) shares (the
“Restricted Shares”) of common stock, $0.03 par value per share, of the Company
(“Common Stock”), subject to the conditions described in this grant of
Restricted Stock (the ”Grant”) and in the Cheniere Energy, Inc. 2003 Stock
Incentive Plan (the “Plan”). The Restricted Shares are granted, effective as of
the      day of                     , 20     (the “Grant Date”).

 

2. Issuance and Transferability. Certificates representing the shares granted
hereunder shall be issued to Participant of even date herewith and shall be
marked with the following legend:

 

“The shares represented by this certificate have been issued pursuant to the
terms of the Cheniere Energy, Inc. 2003 Stock Incentive Plan (as amended and
restated) and may not be sold, pledged, transferred, assigned or otherwise
encumbered in any manner except as is set forth in the terms of such award dated
                         , 20    .”

 

Such shares are not transferable except by will or the laws of descent and
distribution or pursuant to a domestic relations order of the court in a divorce
proceeding. No right or benefit hereunder shall in any manner be liable for or
subject to any debts, contracts, liabilities, or torts of Participant.

 

3. Risk of Forfeiture. Participant shall immediately forfeit all rights to any
non-vested portion of the Restricted Shares in the event of termination,
resignation or removal from employment with the Company of Participant under
circumstances that do not cause Participant to become fully vested under the
terms of the Plan.

 

4. Vesting. Subject to Paragraph 3 hereof, Participant shall vest in his rights
under the Restricted Shares and the Company’s right to repurchase such shares
shall lapse with respect to 33% of the Restricted Shares on the first
anniversary of the date hereof, and shall vest at 33% on the second anniversary
of the date here of with the remainder of the Restricted Shares vesting on the
third anniversary of the date hereof. Upon termination, resignation or removal
of Participant from service or employment with the Company under any
circumstances, any Restricted Shares not then vested shall not vest, shall be
forfeited back to the Company and shall be available for re-issuance under the
Plan.

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5. Ownership Rights. Subject to the restrictions set forth in this Grant, the
Plan and Paragraph 8, Participant is entitled to all voting and ownership rights
applicable to the Restricted Shares, including the right to receive any cash
dividends that may be paid on the Restricted Shares. The Restricted Shares shall
be registered in the name of the Participant and at the address set forth below
the Participant’s signature attached hereto.

 

6. Reorganization of the Company. The existence of this Grant shall not affect
in any way the right or power of the Company or its stockholders to make or
authorize any or all adjustments, recapitalizations, reorganizations or other
changes in the Company’s capital structure or its business; any merger or
consolidation of the Company; any issue of bonds, debentures, preferred or prior
preference stock ahead of or affecting the Restricted Shares or the rights
thereof; the dissolution or liquidation of the Company, or any sale or transfer
of all or any part of its assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.

 

7. Recapitalization Events. In the event of stock dividends, spin-offs of assets
or other extraordinary dividends, stock splits, combinations of shares,
recapitalizations, mergers, consolidations, reorganizations, liquidations,
issuances of rights or warrants and similar transactions or events involving the
Company (“Recapitalization Events”), then for all purposes references herein to
Common Stock or to Restricted Shares shall mean and include all securities or
other property (other than cash) that holders of Common Stock of the Company are
entitled to receive in respect of Common Stock by reason of each successive
Recapitalization Event, which securities or other property (other than cash)
shall be treated in the same manner and shall be subject to the same
restrictions as the underlying Restricted Shares.

 

8. Certain Restrictions. By executing this Grant, Participant acknowledges that
he has received a copy of the Plan and agrees that he will enter into such
written representations, warranties and agreements and execute such documents as
the Company may reasonably request in order to comply with the securities law or
any other applicable laws, rules or regulations, or with this document or the
terms of the Plan.

 

9. Amendment and Termination. No amendment or termination of this Grant shall be
made by the Company at any time without the written consent of Participant.

 

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10. Withholding of Taxes. Participant agrees that, if he makes an election under
Section 83(b) of the Internal Revenue Code of 1986, as amended, with regard to
the Restricted Shares, he will so notify the Company in writing within two (2)
days after making such election, so as to enable the Company to timely comply
with any applicable governmental reporting requirements. The Company shall have
the right to take any action as may be necessary or appropriate to satisfy any
federal, state or local tax withholding obligations.

 

11. No Guarantee of Tax Consequences. The Company makes no commitment or
guarantee to Participant that any federal or state tax treatment will apply or
be available to any person eligible for benefits under this Grant.

 

12. Severability. In the event that any provision of this Grant shall be held
illegal, invalid, or unenforceable for any reason, such provision shall be fully
severable and shall not affect the remaining provisions of this Grant, and the
Grant shall be construed and enforced as if the illegal, invalid, or
unenforceable provision had never been included herein.

 

13. Governing Law. The Grant shall be construed in accordance with the laws of
the State of Delaware to the extent that federal law does not supersede and
preempt Delaware law.

 

Executed the      day of                     , 20    .

 

COMPANY: By:  

 

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Accepted the      day of                     , 20    

 

PARTICIPANT:

 

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Address:

 

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Social Security Number:  

 

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