Common use of Expansion Contracts Clause in Contracts

Expansion Contracts. (a) The Obligors shall not enter into a construction contract or contracts with respect to the development of any mixed refrigerant liquefaction blocks, modules and supporting facilities in addition to the LNG Facilities, and related loading, transportation and storage facilities, in addition to the Development then in operation or under construction that contain obligations and liabilities which, in the aggregate, are in excess of $50 million (an “Expansion”) without the prior consent of the Intercreditor Agent acting at the instruction of the Requisite Intercreditor Parties; provided that without such consent the Obligors may: (i) conduct front-end engineering, development and design work using Equity Funding not otherwise committed to other expenditures for the Development; (ii) prepare and submit applications for Permits related to any such Expansion; and (iii) undertake pre-construction activities and early works activities associated with an Expansion; provided that such activities shall be funded from (A) Equity Funding not otherwise committed to other expenditures for the Development, or (B) Retained Excess Cash Flow, in the case of each of the foregoing sub-clauses (A) and (B), in each case as expressly permitted under the Finance Documents and which use for the contemplated development could not reasonably be expected to have a Material Adverse Effect.