Requirement for Authority Consent

1  Sub-hubco shall obtain the Authority's prior written consent to any Qualifying Refinancing and both the Authority and Sub-hubco shall at all times act in good faith with respect to (a) any Refinancing or (b) any potential or proposed Refinancing under paragraph 9 below.

2  The Authority shall be entitled to receive:

2.1  a 90% share of the Margin Gain arising from any Qualifying Refinancing which gives rise to a reduction in the Margin from the Margin as shown in the Senior Funding Agreements as at Financial Close (or, in the case of a second or subsequent Qualifying Refinancing, from the Margin as shown in the Senior Funding Agreements as updated at the immediately preceding Qualifying Refinancing); and;

2.2  a share of any Refinancing Gain (arising otherwise than from a reduction in Margin) from a Qualifying Refinancing in respect of any Refinancing Gain (when considered in aggregate with all previous Qualifying Refinancings) as follows:

2.2.1  for a Refinancing Gain from £1 up to £1 million, a 50% share;

2.2.2  for a Refinancing Gain from £1 million up to £3 million, a 60% share; and

2.2.3  for a Refinancing Gain in excess of £3 million, a 70% share.

3  The Authority shall not withhold or delay its consent to a Qualifying Refinancing to obtain a greater share of the Refinancing Gain than that specified in paragraph 2 above.