Common use of Variation of Contracts Clause in Contracts

Variation of Contracts. agree to any variation of the Building Contract or any substantial variation of the specification of the Vessel (and for the purpose of this paragraph any extras, additions or alterations which the Borrower may desire to effect in the building of the Vessel shall be deemed to constitute a substantial variation of the specification of the Vessel if the cost thereof (which shall in every case be agreed in writing between the Borrower and the Builder before the work in respect of such variation is put in hand irrespective of whether the prior consent thereto of the Agent be required hereunder) or if the cost of the modification causes or will cause the Total Project Cost (estimated by the Borrower as of such date and notified to the Agent) to exceed one hundred and ten per cent. (110%) of the Scheduled Vessel Project Cost, Provided always that the Agent shall not unreasonably withhold or delay its consent if the Borrower shall evidence to the Agent that the Borrower is in a position to fund any sums from shareholders funds without prejudicing the Borrower’s ability to complete the construction and delivery of the Vessel in accordance with the Building Contract Provided further that, nothing in this clause 9.4.3 shall prohibit the Borrower from varying the specification of the Vessel to the extent the Borrower has an obligation to make such variation of the Vessel pursuant to clause 5.1 of the Time Charter or if such variation is required by applicable Law or the Classification Society. If the Borrower has an obligation to make such variation to the Vessel pursuant to clause 5.1 of the Time Charter, the Borrower shall notify the Agent in writing of such variation and shall provide the Agent, from time to time at the Agent’s reasonable request, information regarding the variation;