Document:

Consent and Waiver No. 4 to Credit Agreement

 EXHIBIT 10.3 
  
 EXECUTION COPY 
  
 CONSENT AND WAIVER NO. 4 
 TO CREDIT
AGREEMENT 
  
 This CONSENT AND WAIVER NO. 4 TO CREDIT
AGREEMENT (this “Consent and Waiver”), dated as of May 31, 2005, is made among Sabine Pass LNG, L.P., a Delaware limited partnership (the “Borrower”), Société Générale, in its
capacity as administrative agent for the Lenders (the “Agent”) and HSBC Bank USA, National Association, in its capacity as collateral agent for the Lenders (the “Collateral Agent”). 
  
 W I T N E S S E T H 
  
 WHEREAS, the Borrower, the Agent and the Collateral Agent are party to a
Credit Agreement dated as of February 25, 2005 (as amended, modified and supplemented and in effect from time to time, the “Credit Agreement”), pursuant to which the lenders from time to time party thereto (the
“Lenders”) have agreed to make loans to the Borrower in an aggregate principal amount of $822,000,000; 
  
 WHEREAS, the Borrower has been unable to procure the levels of insurance required pursuant to the EPC Contract and Credit Agreement on commercially
reasonable terms; 
  
 WHEREAS, pursuant to, and as more fully
described in, the waiver request letter dated as of May 18, 2005 (the “Waiver Request Letter”) attached hereto as Exhibit A, the Borrower has requested that the Lenders (a) consent to a modification to the EPC
Contract and a waiver of certain provisions of the Credit Agreement to modify the required insurance coverages, and (b) consent to a Change Order to increase the contract price of the EPC contract by an amount not to exceed $6,900,000 to
cover the increased costs of the contemplated insurance; 
  
 NOW
THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as
follows: 
  
 Section 1. Definitions. Capitalized terms
(including those used in the preamble and the recitals above) not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement and the principles of interpretation set forth therein shall apply herein. 

 
 Section 2. Consent. The Agent, acting with the consent of the
Majority Lenders, hereby consents to the Borrower (a) entering into a modification of Attachment O to the EPC Contract solely to the extent necessary to effect the changes to Attachment O requested in the Waiver Request Letter, and
(b) entering into a Change Order to increase the contract price of the EPC Contract by an amount not to exceed $6,900,000 to cover the increased costs of the contemplated insurance coverages above the current insurance allowance.

 Section 3. Waiver. The Agent, acting with the consent of the Majority Lenders, hereby waives
compliance with (a) Schedule 8.05(C)(6) of the Credit Agreement solely to the extent necessary to permit the Borrower to obtain pollution liability insurance with a term of no less than 41 months and (b) Schedule 8.05(F)(4)(a) of
the Credit Agreement solely to the extent necessary to permit the Borrower to obtain delayed startup and strikes, riots and civil commotion coverages with term aggregate limits, in each case as set forth in the Waiver Request Letter. 
  
 Section 4. Effectiveness. This Consent and Waiver shall become
effective upon receipt by the Agent of the counterparts of this Consent and Waiver duly executed and delivered by the Borrower and receipt of approval of the Majority Lenders. 
  
 Section 5. Miscellaneous. 
  
 (a) Limited Waiver. 
  
 (i) Except as expressly consented to or waived hereby, all of the representations, warranties, terms, covenants, conditions and other
provisions of the Credit Agreement and the other Financing Documents shall remain unchanged and unwaived and shall continue to be and shall remain in full force and effect in accordance with their respective terms. 
  
 (ii) The consents and waivers set forth herein shall be
limited precisely as provided for herein to the provisions expressly consented to or waived herein and shall not be deemed to be a waiver of any right, power or remedy of any Lender, the Agent or the Collateral Agent under, or a waiver of,
consent to, or modification of, any other term or provision of the Credit Agreement, any other Financing Document referred to therein or herein or of any transaction or further or future action on the part of the Borrower which would
require the consent of the Lenders under the Credit Agreement or any of the other Financing Documents. 
  
 (iii) Except as provided in Sections 2 and 3 hereof, nothing contained in this Consent and Waiver shall abrogate, prejudice, diminish or
otherwise affect any powers, rights, remedies or obligations of any Person arising before the date of this Consent and Waiver. 
  
 (b) Financing Document. This Consent and Waiver shall be deemed to be a Financing Document referred to in the Credit Agreement and shall be
construed, administered and applied in accordance with the terms and provisions thereof. 
  
 (c) Counterparts; Integration; Effectiveness. This Consent and Waiver may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any
parties hereto may execute this Consent and Waiver by signing any such counterpart. 
  
 (d) Costs and Expenses. The Borrower agrees to pay and reimburse the Agent for all its reasonable costs and out-of-pocket expenses (including, without limitation, the reasonable fees and expenses of counsel to
the Agent and the Lenders) incurred in connection with the preparation and delivery of this Consent and Waiver and such other related documents. 

 (e) Governing Law. THIS CONSENT AND WAIVER AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 [Signature Pages Follow] 

 IN WITNESS WHEREOF, the parties hereto have caused this Consent and Waiver to be duly executed and
delivered as of the day and year first above written. 
  

			
	 SABINE PASS LNG, L.P.,
 as Borrower

		
	By:	 	 Sabine Pass LNG—GP, Inc.,
 its General Partner

	 	 	 

  

			
	 
		
	By:	 	 /s/ Graham McArthur

	 	 	 Name: Graham McArthur
 Title: Treasurer

  

	
	 Address for Notices:

	
	 717 Texas Avenue, Suite 3100
 Houston, TX 77002
 Attn: Treasurer

  
  

			
	 SOCIÉTÉ GÉNÉRALE,
 as Agent

		
	By:	 	 /s/ Deepa Dadiani

	 	 	 Name: Deepa Dadiani
 Title: Vice President

  

	
	 Address for Notices:

	
	 1221 Avenue of the Americas
 New York, NY 10020
 Attn: Robert Preminger

	 

  
  
 Appendix A 
  
  

			
	 HSBC BANK USA, NATIONAL ASSOCIATION, as Collateral Agent

		
	By:	 	 /s/ Deirdra N. Ross

	 	 	 Name: Deirdra N. Ross
 Title: Assistant Vice President

  
  

	
	 Address for Notices:

	
	 HSBC Bank USA, National Association
 452 Fifth Avenue
 New York, NY 10018
 Attn: Corporate Trust

	 

  
  

	
	 With a copy to:

	
	 DLA Piper Rudnick Gray Cary US LLP
 One Liberty Place
 1650 Market Street, Suite 4900
 Philadelphia, PA 19103
 Attn: Peter Tucci, Esq.

	 

  
  

 Exhibit A 
 to Consent and Waiver 
  
 Waiver
Request Letter 
  
 (see attached) 

 

 
  
 May 18,
2005 
  
 Societe Generale 
 1221 Avenue of the Americas 
 New York, NY 10020 
 Attn: Robert Preminger 
  

	Re:	Sabine Pass LNG, L.P. (“Sabine”) 

 Credit Agreement Dated February 25, 2005 
  
 Gentlemen: 
  
 Sabine and Bechtel Corporation
have been negotiating with various insurance markets to place the insurance coverages required by both the Credit Agreement and the EPC Contract. The EPC Contract includes an insurance allowance of $5,600,000 to cover the cost of the insurance. We
have not been able to place all of the required coverages due to the commercial unfeasibility of some of the insurance. 
  
 Consequently, both Attachment O to the EPC Contract and Schedule 8.05 of the Credit Agreement require modifications to reflect the insurance coverages that we are seeking
Lender approval to put in place. 
  
 Therefore, pursuant to
Section 8.20(a)(i) of the above referenced Agreement, Sabine is hereby requesting the consent of the Majority Lenders to make the following modifications: 
  

	(1)	Attachment O to the EPC Contract 

  
 Section 1A, 9(b) – Contractor’s Insurance – Builder’s Risk Insurance – Additional Coverages

  
 Attachment O requires that the builder’s risk policy shall insure
the cost of preventative measures to reduce or prevent a loss (sue & labor) in an amount not less than $10 million. 
  
 Sabine requests this limit be reduced to $5 million. Sabine is of the opinion that a $5 million limit is reasonable for a project of this nature. It should be noted that
the lenders have already consented to a $5 million sublimit in Schedule 8.05 to the Credit Agreement. 
  
 Section 1A, 9(e) – Contractor’s Insurance – Builder’s Risk Insurance – Sum Insured 
  
 Attachment O requires full limits for (i) flood and windstorm, and (ii) strikes
riots and civil commotion. The current builder’s risk program negotiated by Bechtel has $100 million sub- 
  

													
	CHENIERE ENERGY, INC.
	 717 Texas Avenue, Suite 3100
	  	Ÿ	  	Houston, Texas 77002	  	Ÿ	  	(713) 659-1361	  	Ÿ	  	Fax (713) 659-5459

 
limits for both coverages under Section 1 (property damage) but no sub-limits of the Delayed Start-up Insurance (DSU). 
  
 Sabine requests that the following changes be made:

  

	 	1.	Wind and flood coverage be modified to $400 million. It is our intent to purchase an excess wind and flood policy which would provide an additional $300 million of aggregate limits
in excess of the current $100 million limits provided for in the builder’s risk program. It also should be noted the base builder’s risk policy allows for one reinstatement of the $100 million limit at a fixed price.

  
 Sabine is comfortable with this reduction in
limit given that the Komposit Risk Engineering Review derived a total probable maximum loss, including both physical and consequential losses, of $173 million. It should be noted that Bechtel still retains the risk of loss for this exposure.

  

	 	2.	Strikes, riots and civil commotion coverage be modified to $100 million. Bechtel met with a lot of resistance from the insurance markets when they attempted to get full limits for
this exposure. Sabine is comfortable with this reduction in limit given the actual exposures that the facility is exposed to. The facility has received very positive local support from all levels of Louisiana government from the Cameron parish
police jury up to the governor of the state. Komposit evaluated this risk as moderate. They point out that there is a high concentration of oil refineries and petrochemical plants in the area, and therefore do not anticipate significant local
opposition to the project. Neither Sabine nor Bechtel anticipates any significant labor issues arising during the construction of the facility. It should be noted that Sabine retains the risk of loss for this exposure. 

  
 Section 1A, 9(f) – Contractor’s Insurance
– Builder’s Risk Insurance – Deductible 
  
 Wind and Flood 
  
 Pursuant to Attachment
O, flood and windstorm is subject to a deductible of 2% of values at risk, subject to a minimum deductible of $1 million and a maximum deductible of $2 million. The current builder’s risk policy has a deductible of 2% of values at risk, subject
to a minimum deductible of $1 million but subject to a maximum deductible of $5 million. Given the current deductible is 2% of the values at risk, to a maximum of $5 million, there is no exposure this year given the values at the site will not
exceed $100 million until next year. 
  
 Sabine requests that the maximum
deductible permitted be changed to $5 million. It should be noted that the lenders have already consented to a $10 million maximum deductible in Schedule 8.05 to the Credit Agreement. It should further be noted that Sabine bears the risk of loss
between $2 million and $5 million. 

 Wet works 
  
 Attachment O requires a wet works deductible of no more than $500,000. The current form of the builder’s risk policy has a $1 million
deductible for wet works. Sabine requests that this deductible be increased to $1 million. It should be noted that the lenders have consented to a $1,000,000 deductible in Schedule 8.05 of the Credit Agreement. The only wet work that is going to be
performed is the construction of the jetties. The subcontractor who is going to be working on the jetties is assuming some of the risk of loss. Sabine is of the opinion that a deductible of $1 million is reasonable for a project of this magnitude.

  
 Section 1A, 10 –
Contractor’s Insurance – Builder’s Risk Delayed Startup Insurance 
  
 Attachment O requires a deductible of not greater than 60 days. The current form of the builder’s risk policy contains a 60 day deductible for most losses, but a 90 day deductible for wind and flood. The insurance carriers will
not agree to lower this deductible to 60 days. However, for an additional premium of approximately $250,000 they are willing to lower the wind and flood DSU deductible to 75 days. Sabine requests that the required DSU deductible for wind and flood
be increased to 75 days as a 60 day deductible is not currently reasonably and commercially feasible in the marketplace. 
  
 Additionally, Attachment O stipulates that the DSU insurance cover losses sustained when access to the site is prevented due to an insured peril at premises in the
vicinity of the site or losses sustained due to the accidental interruption or failure, caused by an insured peril, of supplies of electricity, gas, sewers, water or telecommunication up to the terminal point of the utility supplier with the site,
in both cases for a period of not less than 60 days. The current form of the builder’s risk insurance contains 30 days coverage. 
  
 These coverages do not begin until after the deductible period of 60 days. Sabine is of the opinion that 90 days (60 day deductible plus 30 days of insurance coverage) is
an adequate period to restore access to the site, or utility supplies. Sabine requests that the required coverage periods be lowered to 30 days. 
  
 Section 1B – Time for Procuring and Maintaining Insurance 
  
 The builder’s risk insurance is currently required to be in place no later than June 3, 2005. Sabine requests that the placement
of the contemplated $300 million aggregate limit for wind and flood in excess of the $100 million coverage provided for in the main builders risk policy be extended to no later than May 15, 2006. 
  
 Sabine feels that this request is reasonable given the fact that during the 2005 hurricane
season, only soil preparation work is being performed. Therefore, the $100 million limit already in place is adequate. 
  
 Section 6 – Miscellaneous Policy Provisions 
  
 Attachment O prohibits any annual or term aggregate limits of liability except for the perils of flood, earth movement and windstorm. Sabine
requests that the delayed startup and the Strikes, 

 
riots and civil commotion coverages be permitted to have a term aggregate limit to enable them to be procured in a commercially feasible manner. 

 
 Additional Coverages Required by the Lenders

  
 Schedule 8.05 of the Credit Agreement, requires Marine General Liability
Insurance and Pollution Liability Insurance. Bechtel Corporation is placing this insurance on behalf of Sabine. Consequently, these coverages need to be added to Attachment O. 
  

	(2)	Increase the contract price of the EPC Contract 

  
 Sabine is hereby requesting the consent of the Majority Lenders to enter into a change order to increase the contract price of the EPC Contract by an amount not to exceed
$6,900,000 to cover the increased costs of the contemplated insurance coverages above the current insurance allowance of $5,600,000. This increase in cost will be covered by unallocated contingencies already included in the approved Construction
Budget and Schedule. 
  
 In addition to the above requested modifications to
Attachment O, Sabine also requests the following modifications to Schedule 8.05 of the Credit Agreement: 
  
 Section C(6) – Pollution Liability Insurance 
  
 Schedule 8.05 requires a 5 year policy. Sabine requests that this requirement be changed to a 48 month term, to be more in line with the
other insurance coverages being put into place pursuant to Attachment O. 
  
 Section F(4)(a) – Miscellaneous Policy Provisions 
  
 Schedule 8.05 does not permit any annual or term limits of liability except for the perils of flood, windstorm, earth movement and terrorism. Sabine requests that the delayed startup and strikes, riots and civil
commotion coverages be permitted to have term aggregate limits to enable the coverages to be procured in a commercially feasible manner. This request is also necessary due to the contemplated change in Attachment O requesting the same modification.

  

			
	 Sincerely,
  
 SABINE PASS LNG, L.P.

		
	By:	 	 
	 	 	 Graham A. McArthur
 Its: TreasurerDeferred Compensation Plan of Kenneth P. Cherven dated January 1, 2005

 Exhibit 10.6 
  
 FIRST COMMUNITY BANK 
 DEFERRED COMPENSATION PLAN 
  
 PURPOSE 
  
 First Community Bank of America
(the “Company”), hereby establishes, effective as of January 1, 2005, the First Community Bank Deferred Compensation Plan (the “Plan”) to retain and reward a select management or highly compensated employee of the Company. The
Plan is an unfunded plan established and maintained for the primary purpose of providing certain key employees who substantially contribute to the success of the Company with deferred compensation benefits. 
  
 ARTICLE I 
  
 Definitions 
  
 Whenever used hereinafter, the following terms shall have the meaning set
forth below. 
  
 (a) “Accrued Benefit”
shall mean the retirement benefit, which the Participant has earned, based on his Final Compensation as of the date of determination and calculated in accordance with paragraph (a) of Article III if the Participant has attained age 65 at the time of
determination, or paragraph (b) of Article III if the Participant has not attained age 65 at the time of determination. 
  
 (b) “Actuarial Present Value” shall mean, with respect to determining the amount of a lump sum payment, an amount determined by
using a six and one half percent (6.5%) discount rate and the Age 85 Mortality Table. 
  
 (c) “Affiliate” shall mean, with respect to the Company, any corporation other than such Company that is a member of a controlled group of corporations, within the meaning of Section 414(b) of
the Code, of which such Company is a member; all other trades or businesses (whether or not incorporated) under common control, within the meaning of Section 414(c) of the Code, with such Company; any service organization other than such Company
that is a member of an Affiliated service group, within the meaning of Section 414(m) of the Code, of which such Company is a member; and any other organization that is required to be aggregated with such Company under Section 414(o) of the Code.

  
 (d) “Beneficiary” shall mean the
person or persons designated by a Participant in writing who are to receive any benefits under the Plan after the Participant’s death. If the Participant does not select a Beneficiary under this Plan on forms provided for that purpose, the
Participant’s Beneficiary shall be the Participant’s estate. 
  
 (a) “Change in Control” shall mean a transaction in which the Employer enters into a merger, consolidation, lease, joint venture or similar transaction which results in the Employer no longer being the controlling
entity, or such other definition specified in Treasury regulations or other guidance issued under Section 409A of the Code. 

 (e) “Claimant” shall mean a Participant or Beneficiary. 
  
 (f) “Code” shall mean the Internal Revenue Code of
1986, as it may be amended from time to time, or any successor statute. Reference to a specific section of the Code shall include a reference to any successor provision. 
  
 (g) “Company” shall mean First Community Bank of America and its successors. 
  
 (h) “Compensation” shall mean base salary, bonus and
incentive compensation amounts received by a Participant from the Company. Compensation shall not include any salary reductions made pursuant to a plan described in Section 125 or Section 401(k) of the Code. Compensation shall not include any
amounts realized from the exercise of a non-qualified stock option or amounts realized from restricted stock or qualified stock options. 
  
 (i) “Early Retirement Age” shall mean the Participant’s attainment of age 60. 
  
 (j) “Effective Date” shall mean January 1, 2005.

  
 (k) “Final Compensation” shall mean
the Compensation received by the Participant over the twelve months immediately preceding the Participant’s last day of full-time employment. 
  
 (l) “Normal Retirement Age” shall mean the Participant’s attainment of age 65, or if later, the Participant’s age as of
the date employment with the Company is terminated. 
  
 (m)
“Participant” shall mean Kenneth Cherven. 
  
 (n) “Plan” shall mean the First Community Bank Deferred Compensation Plan hereby created and as it may be amended from time to time. 
  
 (o) “Plan Administrator” shall mean a committee appointed by the Company, or if no committee is
appointed, the Company. 
  
 (p) “Plan
Year” shall mean the 12-month period ending each December 31. 

 ARTICLE II 
  
 Administration 
  
 (a) Plan Administrator. 
  
 (1) The Plan Administrator shall have complete control and discretion to manage the operation and administration of the Plan, with all
powers necessary to enable it to carry out its duties in that respect. Not in limitation, but in amplification of the foregoing, the Plan Administrator shall have the following powers: 
  
 (A) To determine all questions relating to the eligibility of Kenneth Cherven to participate or continue to
participate in the Plan; 
  
 (B) To maintain all
records and books of account necessary for the administration of the Plan and establish such accounting procedures as are necessary to administer the Plan; 
  
 (C) To interpret the provisions of the Plan and to make and to publish such interpretive or procedural rules as are not inconsistent with
the Plan and applicable law; 
  
 (D) To compute,
certify and arrange for the payment of benefits to which the Participant or any Beneficiary is entitled; 
  
 (E) To process claims for benefits under the Plan by the Participant or any Beneficiary; 
  
 (F) To engage consultants and professionals to assist the
Plan Administrator in carrying out its duties under this Plan; and 
  
 (G) To develop and maintain such instruments as may be deemed necessary from time to time by the Plan Administrator to facilitate payment of benefits under the Plan. 
  
 (2) The Plan Administrator may designate employees of the
Company to assist the Plan Administrator in the administration of the Plan and perform ministerial duties required of the Plan Administrator hereunder. 
  
 (b) Plan Administrator’s Authority. The Plan Administrator may consult with Company’s officers, legal and financial
advisers and others, but nevertheless the Plan Administrator shall have the full authority and discretion to act, and the Plan Administrator’s actions shall be final and conclusive on all parties. 
  
 (c) Claims and Appeal Procedure for Denial of Benefits.
A Claimant may file with the Plan Administrator a written claim for benefits if the Participant or Beneficiary determines the distribution procedures of the Plan have not provided him his proper interest in the Plan. The Plan Administrator must
render a decision on the claim within a reasonable period of time of the Claimant’s written claim for benefits. The Plan Administrator must provide adequate notice in writing to the Claimant whose claim for benefits under the Plan the Plan
Administrator has denied. The Plan Administrator’s notice to the Claimant must set forth: 
  
 (1) The specific reason for the denial; 

 (2) Specific references to pertinent Plan provisions on which the Plan Administrator
based its denial; 
  
 (3) A description of any
additional material and information needed for the Claimant to perfect his claim and an explanation of why the material or information is needed; and 
  
 (4) That any appeal the Claimant wishes to make of the adverse determination must be made in writing to the Plan Administrator within
sixty (60) days after receipt of the Plan Administrator’s notice of denial of benefits. The Plan Administrator’s notice must further advise the Claimant that his failure to appeal the action to the Plan Administrator in writing will render
the Plan Administrator’s determination final, binding and conclusive. The Plan Administrator’s notice of denial of benefits must identify the contact name and address of the Plan Administrator to whom the Claimant may forward his appeal.

  
 If the Claimant should appeal to the Plan Administrator, the
Claimant, or his duly authorized representative, must submit, in writing, whatever issues and comments the Claimant, or his duly authorized representative, believes are pertinent. The Claimant, or his duly authorized representative, may review
pertinent Plan documents. The Plan Administrator will re-examine all facts related to the appeal and make a final determination as to whether the denial of benefits is justified under the circumstances. The Plan Administrator must advise the
Claimant of its decision within a reasonable period of time of the Claimant’s written request for review. 

 ARTICLE III 
  
 Benefits 
  
 (a) Normal Retirement Benefit. If the Participant retires on or after attaining his Normal Retirement Age, he will be entitled to an
annual income equal to 75% of the Participant’s Final Compensation for the life of the Participant. 
  
 (b) Early Retirement Benefit. If the Participant retires on or after attaining his Early Retirement Age, but prior to reaching his
Normal Retirement Age, he will be entitled to an annual income equal to 60% of the Participant’s Final Compensation for the life of the Participant. 
  
 (c) Death Benefit. In the event of the death of a Participant prior to actual retirement, the Participant’s spouse shall be
entitled to an annual income equal to 60% of the Participant’s vested Accrued Benefit for life. 
  
 (d) Disability Benefit.  
  
 (1) In the event a Participant’s employment with the Company or an Affiliate is terminated by reason of his Total and Permanent
Disability, such Participant shall be entitled to a benefit equal to his Accrued Benefit determined as of the date of his termination of employment. 
  
 (2) A participant will only be considered to have a Total and Permanent Disability if he is: 
  
 (A) unable to engage in a substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or 
  
 (B) by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan
covering employees of the Participant’s Company. 
  
 (e)
Termination of Employment Benefit.  
  
 (1) In the event that a Participant’s employment with the Company or an Affiliate is terminated for any reason, other than death, the Participant shall be entitled to a benefit equal to his vested Accrued Benefit
determined as of the date of his termination of employment. 
  
 (2) In the event a Participant terminates his employment with the Company or an Affiliate for any reason other than death prior to becoming fully vested, the Participant shall forfeit all nonvested benefits under this
Plan. 
  
 (f) Change in Control Benefit. In the
event the Participant is terminated from employment following a Change in Control, the Participant will be entitled to a benefit equal to his vested Accrued Benefit determined as of the date of the Change in Control. 
  
  

 (g) Vesting. 
  
 (1) The Participant shall vest in accordance with the following vesting schedule: 
  

				
	 Date

	  	Vested Percent

	 
	 Prior to July 1, 2010
	  	0	%
	 July 1, 2010
	  	50	%
	 July 1, 2011
	  	55	%
	 July 1, 2012
	  	60	%
	 July 1, 2013
	  	65	%
	 July 1, 2014
	  	70	%
	 July 1, 2015
	  	75	%
	 July 1, 2016
	  	80	%
	 July 1, 2017
	  	85	%
	 July 1, 2018
	  	90	%
	 July 1, 2019
	  	95	%
	 On or after July 1, 2020
	  	100	%

  
 (2)
Notwithstanding the foregoing, the Participant shall be fully vested upon attainment of Early Retirement Age or Normal Retirement Age or upon termination of employment resulting from a Total and Permanent Disability. 
  
 (3) (A) Notwithstanding the foregoing, if a Participant’s employment is
involuntarily terminated for reasons other than for cause or the Participant is terminated as a result of a Change in Control prior to July 1, 2015, he will be deemed to be 70% vested. 
  
 (B) For purposes of this paragraph, if the Participant is terminated as a result of his criminal conduct or
misconduct involving moral turpitude, gross negligence in carrying out the directions of the Board of Directors of the Company, continued insubordination or intentional refusal to follow reasonable and legal directions of the Board, substance abuse
or intentional violation of conflicts of interest policies established by the Board, he shall be considered as being terminated “for cause.” 
  
 (h) Forfeitures. Forfeited amounts under this Plan shall remain the property of the Company or, if applicable, the trust established
pursuant to Article V. 

 ARTICLE IV 
  
 Distribution of Benefits 
  
 (a) Time and Form of the Distribution of Benefits. The benefit payable to the Participant pursuant to Article
III shall be paid in the form of a single lump sum payment to the Participant (or, in the case of death, the Participant’s spouse) in an amount equal to the Actuarial Present Value of the benefits described in Article V as soon as
administratively possible following the Participant’s termination from employment with the Company or an Affiliate for any reason, including death. 
  
 (b) Tax Withholding. The Company may withhold, or require the withholding from any benefit payment which it is required to make, any
federal, state or local taxes required by law to be withheld with respect to a benefit payment and such sum as the Company may reasonably estimate as necessary to cover any taxes for which the Company may be liable and which may be assessed with
regard to such payment. Upon discharge or settlement of such tax liability, the Company shall distribute the balance of such sum, if any, to a Participant, or if a Participant is then deceased, to the Beneficiary of the Participant. Prior to making
any payment hereunder, the Company may require such documents from any taxing authority, or may require such indemnities or surety bond, as the Company shall reasonably deem necessary for its protection. 

 ARTICLE V 
  

Financing 
  
 (a) Financing. The benefits under this Plan, and the expenses of administering the Plan and maintaining any trust created pursuant to
paragraph (d) of this Article V, may be paid out of the general assets of the Company or any trust. 
  
 (b) No Trust Created. Nothing contained in this Plan, and no action taken pursuant to the provisions of this Plan, shall create or be
construed to create a funded plan, a trust of any kind or a fiduciary relationship between the Company and a Participant, a Participant’s Beneficiary or any other person. 
  
 (c) Unsecured Interest. A Participant shall not have any interest whatsoever in any specific asset of the
Company. To the extent that any person acquires a right to receive payments under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Company. 
  
 (d) Establishment of Trust.  
  
 (1) The Company may establish one or more trusts
substantially in conformance with the terms of the model trust described in Revenue Procedure 92-64 to assist in meeting its obligations to Participants under this Plan. Except as provided in paragraph (b) above and the terms of the trust agreement,
any such trust or trusts shall be established in such manner as to permit the use of assets transferred to the trust and the earnings thereon to be used by the trustee solely to satisfy the liability of the Company in accordance with the Plan.

  
 (2) The Company, in its sole discretion, and
from time to time, may make contributions to the trust. Unless otherwise paid by the Company, all benefits under the Plan and expenses chargeable to the Plan shall be paid from the trust. 
  
 (3) The powers, duties and responsibilities of the trustee
shall be as set forth in the trust agreement and nothing contained in the Plan, either expressly or by implication, shall impose any additional powers, duties or responsibilities upon the trustee. 
  
 (e) Alternative Funding Vehicles. In addition to, or in place
of, creating and maintaining a rabbi trust, the Company may implement other financing arrangements for the purpose of paying some or all of the benefits provided under this Plan. 
  
 (f) Subject to Claims. The Plan constitutes an unsecured promise by the Company to pay benefits in the future.
Participants employed by the Company shall have the status of general unsecured creditors of the Company. The Plan is unfunded for Federal tax purposes and for purposes of Title I of the Employee Retirement Income Security Act of 1974. All amounts
credited to the Participants’ Accounts will remain the general assets of the Company and shall remain subject to the claims of the Company’s creditors until such amounts are distributed to the Participants. 

 ARTICLE VI 
  
 Amendment and Termination 
  
 (a) Amendments and Termination. The Plan may be amended at any time, or from time to time, by the Company, and
the Plan may be terminated at any time by the Company. Any such amendment or termination shall be ratified and approved by the Company’s Board of Directors. 
  
 (b) Effect of Amendment or Termination. No amendment or termination of the Plan shall affect the rights of any
Participant’s Accrued Benefit as of the date of such amendment or termination. 

 ARTICLE VII 
  
 Miscellaneous 
  
 (a) Payments to Minors and Incompetents. If the Plan Administrator receives satisfactory evidence that a person who is entitled to receive
any benefit under the Plan, at the time such benefit becomes available, is a minor or is physically unable or mentally incompetent to receive such benefit and to give a valid release therefore, and that another person or an institution is then
maintaining or has custody of such person, and that no guardian, or other representative of the estate of such person shall have been duly appointed, the Plan Administrator may authorize payment of such benefit otherwise payable to such person to
such other person or institution; and the release of such other person or institution shall be a valid and complete discharge for the payment of such benefit. 
  

(b) Plan Not a Contract of Employment. The Plan shall not be deemed to constitute a contract between the Company and the Participant, nor
to be consideration for the employment of a Participant. Nothing in the Plan shall give a Participant the right to be retained in the employ of the Company; the Participant shall remain subject to discharge or discipline as an employee to the same
extent as if the Plan had not been adopted. 
  
 (c)
Non-Alienation of Benefits. No benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to do so shall be void. No benefit under the
Plan shall in any manner be liable for or subject to the debts, contracts, liabilities, engagements or torts of any person. If any person entitled to benefits under the Plan shall become bankrupt or shall attempt to anticipate, alienate, sell,
transfer, assign, pledge, encumber or charge any benefit under the Plan, or if any attempt shall be made to subject any such benefit to the debts, contracts, liabilities, engagements or torts of the person entitled to any such benefit, except as
specifically provided in the Plan, then such benefits shall cease and terminate at the discretion of the Plan Administrator. The Plan Administrator may then hold or apply the same or any part thereof to or for the benefit of such person or any
dependent or Beneficiary of such person in such manner and proportions as it shall deem proper. 
  
 (d) State Law. This instrument shall be construed in accordance with and governed by the laws of the State of Florida, to the extent not
superseded by the laws of the United States. 
  
 (e) No
Interest in Assets. Nothing contained in the Plan shall be deemed to give any Participant any equity or other interest in the assets, business or affairs of the Company. No Participant in the Plan shall have a security interest in assets of
the Company used to make contributions or pay benefits. 
  
 (f)
Recordkeeping. Appropriate records shall be maintained for the purpose of the Plan, subject to the supervision and control of the Plan Administrator. 
  
 (g) Gender. Throughout this Plan, and whenever appropriate, the masculine gender shall be deemed to include
the feminine and neuter; the singular, the plural; and vice versa. 
  
 (h) Liability Limited. In administering the Plan neither the Plan Administrator nor any officer, director or employee thereof, shall be liable for any act or omission performed or omitted, as the case may be, by such person
with respect to the Plan; provided, that the foregoing shall not relieve any person of liability for gross negligence, fraud or bad faith. The Plan Administrator, its officers, directors and employees shall be entitled to rely conclusively on all
tables, valuations, certificates, opinions and reports that shall be furnished by any actuary, accountant, trustee, insurance company, consultant, counsel or other expert who shall be employed or engaged by the Plan Administrator in good faith.

 (i) Protective Provisions. Each Participant shall cooperate with the Plan Administrator by
furnishing any and all information requested by the Plan Administrator in order to facilitate the payment of benefits hereunder, taking such physical examinations as the Plan Administrator may deem necessary and taking such other relevant action as
may be requested by the Plan Administrator. If a Participant refuses to cooperate or makes any material misstatement of information or nondisclosure of medical history, then no benefits will be payable hereunder to such Participant or his
Beneficiary, provided that, in the Plan Administrator’s sole discretion, benefits may be payable in an amount reduced to compensate the Company for any loss, cost, damage or expense suffered or incurred by the Company as a result in any way of
such action, misstatement or nondisclosure. 
  
 IN WITNESS
WHEREOF, this Plan is effective as of the date first written above and has been executed on the date written below. 
  

					
	 	 	FIRST COMMUNITY BANK OF AMERICA
			
	  

	 	By:	 	  

	Date

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