Document:

CQP 2012 3rd Qtr Ex 10.7

EXHIBIT 10.7

AMENDMENT
TO
PHANTOM UNITS AGREEMENT

This Amendment (the “Amendment”) to the Phantom Units Agreement dated as of _____________, 20__ (the “Agreement”) by and between Cheniere Energy Partners GP, LLC (“Company”) and ______________ (“Participant”) is adopted by Company, effective as of _____________, 2012.  Any capitalized term used herein and not otherwise defined herein shall have the meaning ascribed to it in the Agreement or if not defined herein or in the Agreement, as defined in the Cheniere Energy Partners, L.P. Long-Term Incentive Plan (the “Plan”) pursuant to which the Agreement was established.

RECITALS

WHEREAS, Company and Participant are parties to the Agreement, which was entered into pursuant to the terms of the Plan; and
WHEREAS, Company desires to amend certain provisions of the Agreement as set forth herein pursuant to Section V of Notice 2010-6 issued by the Internal Revenue Service; and
WHEREAS, Company desires to amend the Agreement further in connection with the execution of the Unit Purchase Agreement among Cheniere Energy Partners, L.P., Cheniere Energy, Inc., and Blackstone CQP Holdco LP (the definitive agreement related to the initial equity financing of the Sabine Pass Liquefaction project); and 
WHEREAS, Participant desires to acknowledge and accept the Amendment as set forth herein; and
WHEREAS, the purpose of the Amendment is to (i) amend the definition of “Disability” as used in the Agreement, (ii) clarify the definition of “Change in Control” as used in the Agreement and (iii) to establish an additional vesting event under the Agreement with respect to the Phantom Units without changing the time or form of payment of the compensation payable to Participant resulting from the accelerated vesting of the Phantom Units;
NOW, THEREFORE, Company hereby amends the Agreement as follows: 
1.    Paragraph 3 of the Agreement hereby is amended by adding the following language to the end of the first paragraph thereof:
(each such date, a “Time-Based Vesting Date”).
2.    Paragraph 3 of the Agreement hereby is amended by restating the first and second sentences of the last paragraph thereof in its entirety to read as follows:
To the extent a Phantom Unit shall become fully vested and the restrictions imposed thereon shall have lapsed pursuant to this Paragraph 3 or earlier pursuant to Paragraph 6 of this Phantom Units Agreement, Participant shall be entitled to receive an amount of 

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cash equal to the Fair Market Value of a Unit on the applicable vesting date, or with respect to a Phantom Unit that becomes vested as a result of Participant's termination of service following the “Definitive Agreement Execution Date” as defined in Paragraph 6,  the Fair Market Value of a Unit on the applicable payment date described in Paragraph 6.  Except as provided otherwise in Paragraph 6 of this Phantom Units Agreement, such payment shall be made as soon as practicable, but in no event later than the fifteenth (15th) day of the third (3rd) month following the date on which vesting occurs as provided for in this Phantom Units Agreement and the restrictions lapse.  
3.    Paragraph 6 of the Agreement hereby is amended by restatement in its entirety to read as follows: 
Except as provided otherwise in this Paragraph 6, if Participant's service with Company and its Affiliates shall be terminated for any reason, any unvested Phantom Units outstanding at the time of such termination and all rights thereunder shall be forfeited without payment under Paragraph 3 or 5 and no further vesting shall occur; provided however, that any Phantom Units not then vested shall vest upon the death or Disability of Participant.  For purposes of this Phantom Units Agreement, the term “Disability” as it relates to Participant shall mean that Participant is “disabled” as described in accordance with Treasury Regulation Section 1.409A-3(i)(4) and Section 409A(a)(2)(C) of the Code.
In the event of a Change in Control, any Phantom Units not then vested shall vest upon the resignation or removal of Participant from service with Company and its Affiliates for any reason within one (1) year from the effective date of such Change in Control and be paid pursuant to Paragraph 3 of this Phantom Units Agreement as a result of such vesting event.  As provided for in the Plan, with respect to any amounts payable to Participant under this Phantom Units Agreement that would be considered “non-qualified deferred compensation” under Section 409A of the Code, the term “Change in Control” shall mean a change in the ownership or effective control of the Partnership or the Company, or in the ownership of a substantial portion of the assets of the Partnership or the Company, determined in each case under Section 409A of the Code and applicable Treasury Regulations.  
In the event the Partnership enters into a definitive agreement related to the initial equity financing of the Sabine Pass Liquefaction project during the term of this Phantom Units Agreement, any Phantom Units not then vested shall vest upon the resignation or removal of Participant from service with Company and its Affiliates following the execution date of such definitive agreement (the “Definitive Agreement Execution Date”) and Participant shall receive a payment or payments with respect to the Phantom Units that become vested as a result of such termination of service as provided below.  Notwithstanding the general payment timing provisions described in Paragraph 3 of this Phantom Units Agreement, if Participant's Phantom Units become vested pursuant to this paragraph as a result of Participant's termination of service following the Definitive Agreement Execution Date, Participant shall be paid an amount determined pursuant to Paragraph 3 of this Phantom Units Agreement at the same time and in the same percentages described in Paragraph 3 of this Phantom Units Agreement as Participant would have been paid on each of the remaining Time-Based Vesting Dates had

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 Participant remained in the service of Company and its Affiliates, or on the earlier death or Disability of Participant.  
5.    The Agreement hereby is amended to add a new Paragraph 14 to the Agreement to read as follows:
14.    Section 409A of the Code.  This Phantom Units Agreement is intended to be written, administered, interpreted and construed in a manner such that no payment or benefits provided under the Phantom Units Agreement become subject to (a) the gross income inclusion set forth within Section 409A(a)(1)(A) of the Code or (b) the interest and additional tax set forth within Section 409A(a)(1)(B) of the Code (collectively, “Section 409A Penalties”), including, where appropriate, the construction of defined terms to have meanings that would not cause the imposition of Section 409A Penalties.  Notwithstanding anything to the contrary in this Phantom Units Agreement, with respect to any amounts payable to Participant under this Phantom Units Agreement in connection with a termination of Participant's service with Company that would be considered “non-qualified deferred compensation” under Section 409A of the Code, in no event shall a termination of service be considered to have occurred under this Phantom Units Agreement unless such termination constitutes the Participant's “separation from service” with Company as such term is defined in Treasury Regulation Section 1.409A-1(h), and any successor provision thereto.  Notwithstanding anything to the contrary contained in this Phantom Units Agreement, with respect to any amounts payable to Participant under this Phantom Units Agreement during a specified period of time following the occurrence of a payment event, the actual date of payment during such specified period will be determined by Company, in its sole and absolute discretion.  
IN WITNESS WHEREOF, Company has caused the Amendment to be executed by its duly authorized officers as of the day and year first written above.

CHENIERE ENERGY PARTNERS GP, LLC

	
				
	 
	By:                                                                                                                

	 
	Printed Name:                                                                                               

	 
	Title:                                                                                                              

                        
ACKNOWLEDGED AND ACCEPTED

	
		
	 
	By:                                                                                                                 

	 
	          Participant

3CQP 2012 3rd Qtr Ex 10.8

EXHIBIT 10.8

PHANTOM UNITS AGREEMENT

Pursuant to the terms of the
Cheniere Energy Partners, L.P. Long-Term Incentive Plan

1.    Grant of Phantom Units.  Subject to and in accordance with the terms and conditions of this document, Cheniere Energy Partners GP, LLC, a Delaware limited liability company (“Company”), hereby awards to ______________________ (“Participant”) [_______] phantom units, which are notional units of common units (“Units”) of Cheniere Energy Partners, L.P. (the “Partnership”) (the “Phantom Units”).  This Phantom Units Agreement (“Phantom Units Agreement”) is dated as of [________].  The Phantom Units are awarded pursuant to and to implement in part the Cheniere Energy Partners, L.P. Long-Term Incentive Plan (as amended and in effect from time to time, the “Plan”) and are subject to the terms and conditions of the Plan, which are hereby incorporated herein and is made a part hereof, and this Phantom Units Agreement.  By execution of this Phantom Units Agreement, Participant agrees to be bound by all of the terms, provisions, conditions and limitations of the Plan as implemented by the Phantom Units Agreement, together with all rules and determinations from time to time issued by the Committee pursuant to the Plan.  All capitalized terms have the meanings set forth in the Plan unless otherwise specifically provided.  All references to specified paragraphs pertain to paragraphs of this Phantom Units Agreement unless otherwise provided. 

2.    Timing of Payment of Phantom Units.  Participant shall be entitled to receive the following installment payments in the amount described in Paragraph 3 with respect to the Phantom Units: (i) 25% of the Phantom Units shall become payable on the first anniversary of the date hereof, an additional 25% of the Phantom Units shall become payable on the second anniversary of the date hereof, an additional 25% of the Phantom Units shall become payable on the third anniversary of the date hereof and the remainder of the Phantom Units shall become payable on the fourth anniversary of the date hereof.  Notwithstanding the preceding provisions of this Paragraph 2, in the event of Participant's Disability, death or separation from service with Company and its Affiliates for any reason prior to the completion of all of specified payment dates described above, Participant (or Participant's estate or guardian, as applicable) shall receive a lump sum payment pursuant to Paragraph 3 with respect to the then unpaid portion of the Phantom Units.  For purposes of this Phantom Units Agreement, the term “Disability” as it relates to Participant shall mean that Participant is “disabled” as described in accordance with Treasury Regulation Section 1.409A-3(i)(4) and Section 409A(a)(2)(C) of the Code.
    
3.    Determination of Payment Amounts.  Participant shall be entitled to receive an amount of cash equal to the Fair Market Value of a Unit determined as of the date a Phantom Unit becomes payable.  Such payment shall occur as soon as practicable, but in no event later than the fifteenth (15th) day of the third (3rd) month following the scheduled payment date (or the Disability, death or separation from service payment event, if applicable), with the actual date of payment determined by the Company in its sole and absolute discretion.  Participant's right to any amounts described in Paragraphs 2 and 3 shall not rise above those of a general creditor of Company.

4.    Transferability.  Phantom Units shall not be transferable (by operation of law or otherwise) by Participant or any other person claiming through or under Participant, other than

by Participant's will or the laws of descent or distribution.  Any attempt to sell, assign, transfer, pledge, exchange, hypothecate, or otherwise dispose of any Phantom Units shall be void and unenforceable.

5.    Ownership Rights and Distribution Equivalent Rights.  A Phantom Unit is a notional Unit of Company and, as a result, does not provide or give rise to any right to a Unit or to receive the Fair Market Value of a Unit except as specifically provided in the Plan and this Phantom Units Agreement.  During the term of this Phantom Units Agreement, any distribution in the form of cash paid or delivered by the Partnership on a Unit shall not entitle Participant to an equal amount of cash with respect to each Phantom Unit.

6.    Adjustment of Units.  In the event of any distribution (whether in the form of cash, Common Units, other securities, or other property), recapitalization, split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Units or other securities of Partnership, issuance of warrants or other rights to purchase Units or other securities of Partnership, or other similar transaction or event affects the Units, then the Committee shall, in such manner as it may deem equitable, make adjustments to the terms and provisions of this Phantom Units Agreement pursuant to Section 4(c) of the Plan in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.

7.    Certain Restrictions.  By executing this Phantom Units Agreement, Participant agrees that Participant will enter into such written representations, warranties and agreements as Company may reasonably request in order to comply with the Securities Act of 1933 or any other securities law or with this Phantom Units Agreement.  Participant agrees that Company shall not be obligated to take any affirmative action in order to cause the Phantom Units subject to this Phantom Units Agreement to comply with any law, rule or regulation.

8.    Amendment and Termination.  This Phantom Units Agreement may not be terminated by the Committee at any time without the written consent of Participant.  This Phantom Units Agreement may be amended in writing by Company and Participant, provided Company may amend this Phantom Units Agreement unilaterally (i) if the amendment does not adversely affect Participant's rights hereunder in any material respect, (ii) if Company determines that an amendment is necessary to comply with Rule 16b-3 under the Exchange Act or other applicable law, or (iii) if Company determines that an amendment is necessary to meet the requirements of the Code or to prevent adverse tax consequences to Participant.  No amendment or termination of the Plan will adversely affect the rights and privileges of Participant under this Phantom Units Agreement or to the Phantom Units granted hereunder without the written consent of Participant.

9.    No Guarantee of Service.  Neither this Phantom Units Agreement nor the award of Phantom Units hereunder shall confer upon Participant any right with respect to continuance of employment or other service with Company or any Affiliate, nor shall it interfere in any way with any right Company or any Affiliate would otherwise have to terminate such Participant's employment or other service at any time.

10.    Community Interest of Spouse.  The community interest, if any, of any spouse of Participant in any Phantom Units shall be subject to all of the terms, conditions and restrictions of this Phantom Units Agreement and the Plan.

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

12.    Governing Law.  This Phantom Units Agreement shall be construed in accordance with the laws of the State of Delaware to the extent federal law does not supersede and preempt Delaware law.

13.    Section 409A of the Code.  This Phantom Units Agreement is intended to be written, administered, interpreted and construed in a manner such that no payment or benefits provided under the Phantom Units Agreement become subject to (a) the gross income inclusion set forth within Section 409A(a)(1)(A) of the Code or (b) the interest and additional tax set forth within Section 409A(a)(1)(B) of the Code (collectively, “Section 409A Penalties”), including, where appropriate, the construction of defined terms to have meanings that would not cause the imposition of Section 409A Penalties.  Notwithstanding anything to the contrary in this Phantom Units Agreement, with respect to any amounts payable to Participant under this Phantom Units Agreement in connection with a termination of Participant's service with Company that would be considered “non-qualified deferred compensation” under Section 409A of the Code, in no event shall a termination of service be considered to have occurred under this Phantom Units Agreement unless such termination constitutes the Participant's “separation from service” with Company as such term is defined in Treasury Regulation Section 1.409A-1(h), and any successor provision thereto.  The payments to Participant shall be made within the period described in Paragraph 3 following the specified payment dates, or if applicable, the earlier payment event.  For purposes of Section 409A of the Code, each payment that Participant may be eligible to receive under this Phantom Units Agreement shall be treated as a separate and distinct payment and shall not collectively be treated as a single payment.  Notwithstanding anything to the contrary contained in this Phantom Units Agreement, with respect to any amounts payable to Participant under this Phantom Units Agreement during a specified period of time following the occurrence of a scheduled payment date or event, the actual date of payment during such specified period will be determined by Company, in its sole and absolute discretion.  

[Remainder of page intentionally left blank]

COMPANY:

CHENIERE ENERGY PARTNERS GP, LLC

	
				
	 
	By:_____________________________________________

	 
	Printed Name:  ___________________________________

	 
	Title: Sr. Vice President & Chief Financial Officer               

PARTICIPANT:

	
		
	 
	By:_______________________________________________

	 
	          (Signature)

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