Document:

Exhibit 10.26 SPLIQ 2014 10-K

Exhibit 10.26

*** indicates material has been omitted pursuant to a Confidential Treatment Request filed with the Securities and Exchange Commission.  A complete copy of this agreement has been filed separately with the Securities and Exchange Commission.
CHANGE ORDER FORM
Performance and Attendance Bonus (PAB) Incentive Program Provisional Sum

	
		
	PROJECT NAME:  Sabine Pass LNG Liquefaction Facility

OWNER:  Sabine Pass Liquefaction, LLC

CONTRACTOR:  Bechtel Oil, Gas and Chemicals, Inc.

DATE OF AGREEMENT: November 11, 2011
	CHANGE ORDER NUMBER: CO-00037

DATE OF CHANGE ORDER: October 31, 2014 

The Agreement between the Parties listed above is changed as follows:  (attach additional documentation if necessary) 

		
	1.
	Parties agree Bechtel will implement a Performance and Attendance Bonus (PAB) Incentive Program to attract and retain qualified craft beginning the first regular pay period of 2015 through Substantial Completion of Subproject 2.  The overall PAB Incentive Program will be comprised of two separate programs.  Program 1 will apply to all SPL 1 direct-hire craft workers.  Program 2 will apply to all SPL 1 core direct-hire crafts in the following classifications: electrician, instrument technician, millwright, friction operator, pipefitter, rigger, and welder.  The Provisional Sum amount for Program 1PAB and Program 2 PAB is $***. Further details regarding the PAB Incentive Programs 1 and 2 are detailed in Exhibit A of this Change Order. 

		
	2.
	Bechtel will invoice SPL at the beginning of each quarter, the maximum achievable incentive amount for that quarter.  Semi-annually the Parties will reconcile the previous two quarter’s invoiced amount against the total cost of the PAB Incentive Program in the same two quarters.  Any variance will be included with the next applicable invoice.

		
	3.
	PAB quarterly goals will be set with the intention to achieve target schedule progress and attendance goals. PAB amounts will be paid to qualified craft members on a quarterly basis. Bechtel will pay the craft 50% of the earned PAB and retain the remaining 50% of the PAB in escrow through the duration of the employee’s work on SPL 1. Payment parameters and milestone examples are summarized in Exhibit A.

		
	4.
	Attachment EE of the Agreement is hereby amended by adding Section 2.6 Craft Incentive & Retention Program Provisional Sum.

2.6    Craft Incentive & Retention Program Provisional Sum

The Aggregate Provisional Sum contains a Provisional Sum of *** U.S. Dollars (U.S. $***) for craft compensation in order to attract and retain qualified craft.  If the actual Performance and Attendance Bonus (PAB) Incentive Program Cost under this Agreement is less than the Performance and Attendance Bonus (PAB) Incentive Program Provisional Sum, Owner shall be entitled to a Change Order reducing the Contract Price by such difference.  If the actual Performance and Attendance Bonus (PAB) Incentive Program Cost under this Agreement is greater than the Performance and Attendance Bonus (PAB) Incentive Program Provisional Sum, Contractor shall be entitled to a Change Order increasing the Contract Price by such difference. 

		
	5.
	The Aggregate Provisional Sum specified in Article 7.1A of the Agreement prior to this Change Order was $305,923,466.  This Change Order will increase the Aggregate Provisional Sum amount by $*** and the new value shall be $***.    

Adjustment to Contract Price
	
				
	The original Contract Price was
	$
	3,900,000,000
	

	Net change by previously authorized Change Orders (#0001-00036)
	$
	175,437,494
	

	The Contract Price prior to this Change Order was
	$
	4,075,437,494
	

	The Contract Price will be (increased) by this Change Order in the amount of
	$
	***

	The new Contract Price including this Change Order will be
	$
	***
	

Adjustment to dates in Project Schedule
The following dates are modified (list all dates modified; insert N/A if no dates modified): No impact to Project Schedule.

Adjustment to other Changed Criteria (insert N/A if no changes or impact; attach additional documentation if necessary) 

Adjustment to Payment Schedule: Yes.

Adjustment to Minimum Acceptance Criteria: N/A

Adjustment to Performance Guarantees: N/A

Adjustment to Design Basis: N/A

Other adjustments to liability or obligation of Contractor or Owner under the Agreement: N/A

Select either A or B:
[A] This Change Order shall constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall be deemed to compensate Contractor fully for such change.  Initials:  /s/ SB Contractor  /s/ EL Owner

[B] This Change Order shall not constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall not be deemed to compensate Contractor fully for such change.  Initials:  ____ Contractor  ____ Owner

Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid and binding part of the original Agreement without exception or qualification, unless noted in this Change Order.  Except as modified by this and any previously issued Change Orders, all other terms and conditions of the Agreement shall remain in full force and effect.  This Change Order is executed by each of the Parties’ duly authorized representatives. 

	
			
	/s/ Ed Lehotsky
	 
	/s/ Sergio Buoncristiano

	Owner
	 
	Contractor

	Ed Lehotsky
	 
	Sergio Buoncristiano

	Name
	 
	Name

	VP LNG Project Management
	 
	Principal Vice President

	Title
	 
	Title

	December 10, 2014
	 
	October 31, 2014

	Date of Signing
	 
	Date of Signing

CHANGE ORDER FORM
Control Room Modifications and Misc. Items

	
		
	PROJECT NAME:  Sabine Pass LNG Liquefaction Facility

OWNER:  Sabine Pass Liquefaction, LLC

CONTRACTOR:  Bechtel Oil, Gas and Chemicals, Inc.

DATE OF AGREEMENT: November 11, 2011
	CHANGE ORDER NUMBER: CO-00038

DATE OF CHANGE ORDER: January 6, 2015 

The Agreement between the Parties listed above is changed as follows:  (attach additional documentation if necessary) 

		
	1.
	Parties agree Bechtel will engineer, and have its subcontractor install, the Tate access flooring in room 208 and the dissipative vinyl tiling in rooms 208 and 208A of the Control Building as well as control room modifications associated with future expansion.  The  modifications include:

		
	a.
	An updated HVAC system to accommodate extra heat load;

		
	b.
	A provision in the control, I/O, and telecom room for future expansion;

		
	c.
	Future expansion will include transformer, feeder, breaker, and UPS instrument power distribution for panel for Stage 3;

		
	d.
	Raceway/cable conduit/penetration and run power circuits from the I/O room to the consoles in the Control Room for future expansion;

		
	e.
	Additional fiber optic cards to accommodate Stage 3 speakers.

		
	2.
	Exhibit A of this Change Order depicts the new flooring and modifications.

		
	3.
	Parties agree SPL will transfer the scope of work associated with the tie-in between Port Arthur water line and contractual tie-in location to Bechtel.  As part of this work scope transfer, Bechtel:

		
	a.
	Will extend the 16” city water utility line from the block valve to the sleeper rack adjacent from the water storage tank tags 10S-3603 to reach the contractual interface point.

		
	b.
	Removed SPL’s thrust block and inserted an additional temporary block valve with branch connections upstream of the new block valve that will be removed during the final tie-in design configuration.

		
	c.
	Identified the water utility line mechanical joint connections are not designed for soil subsidence  based on the three foot soil improvement in the area.  Bechtel and SPL agreed to relocate the block valve to the first welding fitting, replace the mechanical pipe joints with HDPE pipe, and include (EBAA) ball joint type flex connection when transitioning from underground to above ground piping near the sleeper rack.

		
	4.
	Exhibit B of this Change Order depicts the work scope associated with this transfer of work scope.

		
	5.
	Parties agree that Bechtel will make the following modifications to the failure positions of the actuators for HV-54069 and HV-54070:

		
	a.
	HV-54069 (tie-in T-5409): Change from the current failure position of “FO” (fail open) to “FL” (fail last).

		
	b.
	HV-54070 (tie-in T-5415): Change from the current failure position of “FL” (fail last) to “FO” (fail open).

		
	6.
	Parties agree Bechtel will modify the existing LNG send out line to include a thermal relief valve between ESD valves XV55029 and HV 25061.  The thermal relief valve exhaust will be routed to a safe location, agreed to by Bechtel and SPL, in lieu of routing to the BOG header or V-104.  

		
	7.
	Exhibit C of this Change Order depicts the modifications to the send out line.

		
	8.
	This Change Order also includes a credit for 1 invoice paid by SPL to Jeff Davis Electrical Corp, as shown in Exhibit D.

		
	9.
	The overall cost breakdown for this Change Order is detailed in Exhibit E and described as follows:

		
	a.
	The Previous Existing Facility Labor Provisional Sum in Article 2.2 of Attachment EE of the Agreement was *** U.S. Dollars ($***) and *** hours. This Change Order will amend the previous values respectively to *** U.S. Dollars ($***) and *** hours.

		
	b.
	The Aggregate Provisional Sum specified in Article 7.1A of the Agreement prior to this Change Order was $332,423,466.  This Change Order will increase the Aggregate Provisional Sum amount by $*** and the new value shall be $***.    

		
	10.
	Schedule C-1 (Milestone Payment Schedule) of Attachment C of the Agreement will be amended by including the milestone(s) listed in Exhibit F of this Change Order.

Adjustment to Contract Price
	
				
	The original Contract Price was
	$
	3,900,000,000
	

	Net change by previously authorized Change Orders (#00001-00037)
	$
	***
	

	The Contract Price prior to this Change Order was
	$
	***
	

	The Contract Price will be (increased) by this Change Order in the amount of
	$
	$1,249,463

	The new Contract Price including this Change Order will be
	$
	***
	

Adjustment to dates in Project Schedule
The following dates are modified (list all dates modified; insert N/A if no dates modified): No impact to Project Schedule.

Adjustment to other Changed Criteria (insert N/A if no changes or impact; attach additional documentation if necessary) 

Adjustment to Payment Schedule: Yes.  See Exhibit E and F of this Change Order.

Adjustment to Minimum Acceptance Criteria: N/A

Adjustment to Performance Guarantees: N/A

Adjustment to Design Basis: N/A

Other adjustments to liability or obligation of Contractor or Owner under the Agreement: N/A

 
[A] This Change Order shall constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall be deemed to compensate Contractor fully for such change.  Initials:  /s/ JJ Contractor  /s/ EL Owner

[B] This Change Order shall not constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall not be deemed to compensate Contractor fully for such change.  Initials:  ____ Contractor  ____ Owner

Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid and binding part of the original Agreement without exception or qualification, unless noted in this Change Order.  Except as modified by this 

and any previously issued Change Orders, all other terms and conditions of the Agreement shall remain in full force and effect.  This Change Order is executed by each of the Parties’ duly authorized representatives. 

	
			
	/s/ Ed Lehotsky
	 
	/s/ JT Jackson

	Owner
	 
	Contractor

	Ed Lehotsky
	 
	JT Jackson

	Name
	 
	Name

	VP LNG Project Management
	 
	Sr. Vice President

	Title
	 
	Title

	January 20, 2015
	 
	January 7, 2015

	Date of Signing
	 
	Date of SigningExhibit 10.32 SPLIQ 2014 10-K

Exhibit 10.32

*** indicates material has been omitted pursuant to a Confidential Treatment Request filed with the Securities and Exchange Commission.  A complete copy of this agreement has been filed separately with the Securities and Exchange Commission.
CHANGE ORDER FORM
Performance and Attendance Bonus (PAB) Incentive Program Provisional Sum

	
		
	PROJECT NAME:  Sabine Pass LNG Stage 2 Liquefaction Facility

OWNER:  Sabine Pass Liquefaction, LLC

CONTRACTOR:  Bechtel Oil, Gas and Chemicals, Inc.

DATE OF AGREEMENT: December 20, 2012
	CHANGE ORDER NUMBER: CO-00015

DATE OF CHANGE ORDER: October 31, 2014 

The Agreement between the Parties listed above is changed as follows: 

		
	1.
	Parties agree Bechtel will implement a Performance and Attendance Bonus (PAB) Incentive Program to attract and retain qualified craft beginning the first regular pay period of 2015 through Substantial Completion of Subproject 4.  The overall PAB Incentive Program will be comprised of two separate programs.  Program 1 will apply to all SPL 2 direct-hire craft workers.  Program 2 will apply to all SPL 2 core direct-hire crafts in the following classifications: electrician, instrument technician, millwright, friction operator, pipefitter, rigger, and welder.  The Provisional Sum amount for Program 1PAB and Program 2 PAB is $***. Further details regarding the PAB Incentive Programs 1 and 2 are detailed in Exhibit A of this Change Order. 

		
	2.
	Bechtel will invoice SPL at the beginning of each quarter, the maximum achievable incentive amount for that quarter.  Semi-annually the Parties will reconcile the previous two quarter’s invoiced amount against the total cost of the PAB Incentive Program in the same two quarters.  Any variance will be included with the next applicable invoice.

		
	3.
	PAB quarterly goals will be set with the intention to achieve target schedule progress and attendance goals. PAB amounts will be paid to qualified craft members on a quarterly basis. Bechtel will pay the craft 50% of the earned PAB and retain the remaining 50% of the PAB in escrow through the duration of the employee’s work on SPL 2. Payment parameters and milestone examples are summarized in Exhibit A.

		
	4.
	Attachment EE of the Agreement is hereby amended by adding Section 2.6 Craft Incentive & Retention Program Provisional Sum.

2.6    Craft Incentive & Retention Program Provisional Sum

The Aggregate Provisional Sum contains a Provisional Sum of *** U.S. Dollars (U.S. $***) for craft compensation in order to attract and retain qualified craft.  If the actual Performance and Attendance Bonus (PAB) Incentive Program Cost under this Agreement is less than the Performance and Attendance Bonus (PAB) Incentive Program Provisional Sum, Owner shall be entitled to a Change Order reducing the Contract Price by such difference.  If the actual Performance and Attendance Bonus (PAB) Incentive Program Cost under this Agreement is greater than the Performance and Attendance Bonus (PAB) Incentive Program Provisional Sum, Contractor shall be entitled to a Change Order increasing the Contract Price by such difference. 

		
	5.
	The Aggregate Provisional Sum specified in Article 7.1A of the Agreement prior to this Change Order was $236,182,965.  This Change Order will increase the Aggregate Provisional Sum amount by $*** and the new value shall be $***.   

 

Adjustment to Contract Price

	
				
	The original Contract Price was
	$
	3,769,000,000
	

	Net change by previously authorized Change Orders (#0001-00014)
	$
	(19,842,608
	)

	The Contract Price prior to this Change Order was
	$
	3,749,157,392
	

	The Contract Price will be (increased) by this Change Order in the amount of
	$
	***

	The new Contract Price including this Change Order will be
	$
	***
	

Adjustment to dates in Project Schedule
The following dates are modified (list all dates modified; insert N/A if no dates modified): No impact to Project Schedule.

Adjustment to other Changed Criteria (insert N/A if no changes or impact; attach additional documentation if necessary) 

Adjustment to Payment Schedule: Yes.

Adjustment to Minimum Acceptance Criteria: N/A

Adjustment to Performance Guarantees: N/A

Adjustment to Design Basis: N/A

Other adjustments to liability or obligation of Contractor or Owner under the Agreement: N/A

Select either A or B:
[A] This Change Order shall constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall be deemed to compensate Contractor fully for such change.  Initials:  /s/ SB Contractor  /s/ EL Owner

[B] This Change Order shall not constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall not be deemed to compensate Contractor fully for such change.  Initials:  ____ Contractor  ____ Owner

Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid and binding part of the original Agreement without exception or qualification, unless noted in this Change Order.  Except as modified by this and any previously issued Change Orders, all other terms and conditions of the Agreement shall remain in full force and effect.  This Change Order is executed by each of the Parties’ duly authorized representatives. 

	
			
	/s/ Ed Lehotsky
	 
	/s/ Sergio Buoncristiano

	Owner
	 
	Contractor

	Ed Lehotsky
	 
	Sergio Buoncristiano

	Name
	 
	Name

	VP LNG Project Management
	 
	Principal Vice President

	Title
	 
	Title

	December 10, 2014
	 
	October 31, 2014

	Date of Signing
	 
	Date of Signing

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