On August 6, 2012, the Compensation Committee of the Board of Directors (the "Compensation Committee") of Cheniere Energy, Inc. (the "Company") approved mid-year 2012 base salary increases for each of the executive officers of the Company effective as of July 30, 2012. The Compensation Committee approved these increases to raise the base salary of certain executive officers who were below market compared to similar executive officer positions as reflected in the Company's executive compensation market data described in the Company's definitive proxy statement filed with the Securities and Exchange Commission ("SEC") on April 19, 2012 ("Proxy Statement").

On August 6, 2012, pursuant to the terms of the Company's 2011 - 2013 Bonus Plan (the "Plan") and in connection with Sabine Pass Liquefaction, LLC, an indirect majority owned subsidiary of the Company ("Sabine Pass Liquefaction"), securing financing commitments to fund the cost of constructing the first two liquefaction trains of the proposed liquefaction facilities adjacent to the Sabine Pass LNG terminal in Cameron Parish, Louisiana (the "Project"), the Compensation Committee approved a long-term commercial bonus award ("LTCBA") to be paid from the Long-Term Commercial Bonus Pool ("Bonus Pool") (as defined in the Plan) for each of the executive officers of the Company. The Compensation Committee approved a Bonus Pool consisting of approximately $60 million in cash and approximately 10 million restricted shares of Company common stock. Pursuant to the terms of the Plan, the Compensation Committee determined the amount of the Bonus Pool based on the entry by Sabine Pass Liquefaction into certain sale and purchase agreements relating to Sabine Pass Liquefaction's sale of liquefied natural gas from the first two liquefaction trains being constructed at the Project. The Plan provides that up to a maximum of 25% of the Bonus Pool ("Long-Term Commercial Cash Award") may be paid in cash and the remainder of the Bonus Pool will be paid in equity in the form of restricted stock ("Restricted Stock Award") of the Company, as determined by the Compensation Committee (the "Percentage Cash Limitation"). In addition, the Plan provides that the Company may not pay more than $20 million in cash in the aggregate to all participants in the Plan for any performance year (the "Annual Cash Limitation"). The Compensation Committee determined that it was appropriate to grant Long-Term Commercial Cash Awards in excess of the Annual Cash Limitation and Percentage Cash Limitation; however, the aggregate LTCBAs approved under the Plan did not exceed the approved Bonus Pool.

Each executive officer's LTCBA includes a Long-Term Commercial Cash Award and a Restricted Stock Award that were granted on August 9, 2012 and both awards will vest in five installments. Pursuant to the terms of the Plan, the first installment of both the Long-Term Commercial Cash Award and Restricted Stock Award vested upon the issuance by Sabine Pass Liquefaction on August 9, 2012 of a full notice to proceed (the "NTP") to Bechtel Oil, Gas and Chemicals, Inc. ("Bechtel") under the Engineering, Procurement and Construction Agreement dated November 11, 2011 by and between Sabine Pass Liquefaction and Bechtel. The Long-Term Commercial Cash Awards will vest and be paid in five equal annual installments of 20% with the final four 20% installments to vest and be paid on each annual anniversary of the issuance of the NTP. The Restricted Stock Awards will vest as follows: 35% vested upon the issuance of the NTP on August 9, 2012; 10% will vest on the first anniversary of the issuance of the NTP; 15% will vest on the second anniversary of the issuance of the NTP; 15% will vest on the third anniversary of the issuance of the NTP; and 25% will vest on the fourth anniversary of the issuance of the NTP. The executive officers must generally be employed by the Company at the time of vesting or they will forfeit their respective LTCBAs. The forms of grant agreements for the Long-Term Commercial Cash Award and Restricted Stock Award that were approved by the Compensation Committee are attached hereto as Exhibits 10.1 - 10.10 and are incorporated herein by reference. The Compensation Committee also

approved revised forms of grant agreements that may be used periodically by the Company for equity awards to new hires under the Company's 2003 Stock Incentive Plan and 2011 Incentive Plan. These forms of grant agreements are attached hereto as Exhibits 10.11 - 10.14 and are incorporated herein by reference.

The following table sets forth the mid-year 2012 annual base salary and LTCBA for the Company's principal executive officer, principal financial officer and other executive officers who are named in the Summary Compensation Table in the Proxy Statement.

Mid-Year Base Salary Increase and Long-Term Commercial Bonus Award

                                        2012 Mid-Year Long-Term Commercial Bonus
           Executive Officer             Base Salary             Award
                                                       Restricted    Cash Bonus
                                                       Stock Award      Award
Charif Souki
Chairman, Chief Executive Officer and
President                                 $800,000      3,500,000    $21,000,000
Meg A. Gentle
Senior Vice President and Chief
Financial Officer                         $420,000       500,000     $3,000,000
H. Davis Thames
Senior Vice President - Marketing         $420,000       500,000     $3,000,000
Jean Abiteboul 1
Senior Vice President - International     $375,000       400,000     $2,400,000
Greg W. Rayford
Senior Vice President and General
Counsel                                   $375,000       400,000     $2,400,000

1 Mr. Abiteboul's base salary is 306,998 EUR. The amount reported in the table represents the U.S. dollar equivalent based on the July 30, 2012 exchange rate of 1 USD to 0.81155 EUR.

d) Exhibits

Exhibit
Number  Description
10.1*        Form of 2011 - 2013 Bonus Plan Long-Term Commercial Cash Award (US

10.3*        Form of 2011 - 2013 Bonus Plan Long-Term Commercial Cash Award (US
Form)

10.4*        Form of 2011 - 2013 Bonus Plan Restricted Stock Grant under the
2011
             Incentive Plan (US Form)

10.5*        Form of 2011 - 2013 Bonus Plan Long-Term Commercial Cash Award
             (UK - Executive Form)

10.6*        Form of 2011 - 2013 Bonus Plan Restricted Stock Grant under the
2011
             Incentive Plan (UK - Executive)

10.7*        Form of 2011 - 2013 Bonus Plan Long-Term Commercial Cash Award (UK
Form)

10.8*        Form of 2011 - 2013 Bonus Plan Restricted Stock Grant under the

2011 Incentive Plan
(UK Form)

10.9*        Form of 2011 - 2013 Bonus Plan Long-Term Commercial Cash Award
             (US - Consultant/Independent Contractor)

10.10*       Form of 2011 - 2013 Bonus Plan Restricted Stock Grant under the
2011
             Incentive Plan (US -  Consultant/Independent Contractor)

10.11*       Form of Restricted Stock Grant under the Cheniere Energy, Inc.
Amended
             and Restated 2003 Stock Incentive Plan (US - New Hire)

10.12*       Form of Restricted Stock Grant under the Cheniere Energy, Inc.
Amended
             and Restated 2003 Stock Incentive Plan (UK - New Hire)

10.13*       Form of Restricted Stock Grant under the Cheniere Energy, Inc. 2011
             Incentive Plan (US - New Hire)

10.14*       Form of Restricted Stock Grant under the Cheniere Energy, Inc. 2011
             Incentive Plan (UK - New Hire)

* Filed herewith.