The Loan Syndications and Trading Association (LSTA) has responded to the International Organization of Securities Commission (IOSCO)'s Final Report on 'Leveraged Loans and CLOs Good Practices for Consideration'. The Final Report’s good practices remain largely in their original form, but several important changes requested in the LSTA’s feedback have been made.

This Practice Note explains all aspects of the procedure in applications to court for renewal or termination of a business lease, interim rent applications, and Professional Arbitration on Court Terms (PACT). For guidance regarding termination of business leases including: • the criteria in section 23 of the Landlord and Tenant Act 1954 (LTA 1954) for whether or not a tenancy falls within the statutory security of tenure for business tenancies, including the meaning of occupied for the purposes of business • the exclusions from security of tenure including under LTA 1954, s 43 • methods for ending a business lease during the term or after the expiration of the fixed term including by common law methods of surrender and forfeiture, and under LTA 1954 by way of a landlord’s section 25 notice (served on an opposed (section 30 grounds) or unopposed basis), tenant’s section 26 request or tenant’s section 27 notice to terminate • the competent landlord • the identity of the tenant including issues such as where the tenant is a trust (LTA 1954,

This Practice Note deals with the continuation and termination of business tenancies. See Practice Note: LTA 1954 business lease renewal—proceedings for guidance regarding timing and time limits for applications to court, where proceedings should be issued, who the landlord is for the purposes of proceedings, what happens where there are conflicting applications to court, the position regarding withdrawal of applications, the unopposed and opposed procedures including in respect of claim forms, particulars of claim, acknowledgments of service, defence (where appropriate), directions and hearings, revocation of court orders for a new tenancy, near miss orders, summary judgment, Part 36 and Calderbank offers, discontinuing or dismissing lease renewal proceedings, interim rent, and costs. Does LTA 1954 apply? Provided a tenancy satisfies the requirements of section 23 of the Landlord and Tenant Act 1954 (LTA 1954), a tenant will have a statutory right to seek a new lease or tenancy at the expiry of its current tenancy, pursuant to LTA 1954, s 24, and the tenancy will continue in the meantime until terminated in accordance with LTA 1954. LTA

This Flowchart sets out the procedure for an opposed business lease renewal under the Landlord and Tenant Act 1954 (LTA 1954), including in respect of timing for service of an opposed section 25 notice or section 26 request counter-notice specifying ground(s) of opposition under LTA 1954, s 30(1) issuing opposed proceedings, filing statements of case, through to the court making an order for termination or for a new lease, or discontinuance or dismissal of proceedings. A business lease automatically continues after the expiry of the contractual term if the tenant remains in occupation for business purposes, satisfying the requirements of LTA 1954, s 23. The statutory rights under the existing lease may be terminated by either party serving one of the statutory notices of termination (ie a landlord’s section 25 notice, a tenant’s section 26 request or a section 27 notice). This flowchart sets out the procedure for an opposed lease renewal. For the unopposed lease renewal procedure, see: Unopposed lease renewal procedure—flowchart. Note 1 Diarise a date at least 12–18 months in advance

A business lease automatically continues after the expiry of the contractual term if the tenant remains in occupation for business purposes under the Landlord and Tenant Act 1954 (LTA 1954). The statutory rights under the existing lease may be terminated by either party serving one of the statutory notices of termination. This flowchart sets out the procedure for an LTA 1954 unopposed business lease renewal. For the LTA 1954 opposed business lease renewal procedure, see: LTA 1954 opposed lease renewal procedure—flowchart. For more information regarding LTA 1954 security of tenure and the court procedure, see Practice Notes: LTA 1954 business lease renewal—proceedings and LTA 1954 business lease renewal—termination. Note 1 Diarise a date at least 12–18 months in advance of the contractual expiry date of the current lease. See Practice Note: LTA 1954 business lease renewal—termination. Note 2 Information must be provided within one month of service of notice. A party has a duty to correct any information supplied for six months after receiving the notice. See Practice Note: Section 40 information

This Practice Note deals with the determination of the terms of a renewal lease by the court under the sections 32–34 of the Landlord and Tenant Act 1954 (LTA 1954), in the event that the parties cannot reach agreement, in respect of the premises, length of term, the rent payable, and other terms including improvements, rent review break options, guarantors, repairs, reinstatement and alterations, service charges and rent deposits. Court determination Where a landlord and tenant cannot reach agreement as to the terms of a renewal lease, either party can apply to the court for a determination of the terms under LTA 1954, s 24(1). LTA 1954, ss 32–35 set out the basis on which the court will determine the terms of the new lease as follows: • LTA 1954, s 32 deals with the premises comprised in the new tenancy • LTA 1954, s 33 deals with the duration of the new tenancy • LTA 1954, s 34 deals with rent under the new tenancy • LTA 1954, s 35 deals with

The Landlord and Tenant Act 1987 (LTA 1987), Part I gives qualifying tenants of flats a right of pre-emption (also known as a right of first refusal) enabling them to purchase the interest of their landlord if and when the

Employment analysis: In the context of an indirect age discrimination claim relating to changes made by a parent company to the rules of a long term incentive plan (LTIP), the Employment Appeal Tribunal (EAT) has held that there is no scope for a ‘purposive’ construction of section 109 of the Equality Act 2010 (EqA 2010), under which a principal becomes liable for the discriminatory acts of their agent. It is only if there are two genuinely competing interpretations of the relevant statutory provision that regard can be had to the general purpose of the statute to ‘deter and combat discrimination’ in construing it and deciding which interpretation to adopt; section 109 is not such a statutory provision, according to the EAT.

The Company Secretary [insert date] [insert name of company that granted the option] (Company) [[insert address of company that granted the option]] Form of notice of exercise From: [insert name of option holder] 1 Exercise of the Option I refer to the option granted to me on [insert date on which the share option was originally granted] over [insert class and nominal value of shares under option] shares in the Company (Shares) under the terms of the [insert name of LTIP under which option was granted] (Plan) (Option), and hereby give notice that I am exercising the Option in respect of [insert number of shares being exercised] Shares at the exercise price of £[insert exercise price per share as in the original grant documentation] per Share (Option Price) and request the allotment or transfer to me of those Shares in accordance with the Plan and the Memorandum and Articles of Association of the Company. I request that you place my name on the register of members in respect of those Shares and I hereby confirm that the above

[insert name of company who granted the award pursuant to the long term incentive plan (LTIP)] (Company) [insert name of LTIP] (Plan) Name Number of Shares by reference to which the Cash Award has been granted Date of Grant Normal Vesting Date[, subject to satisfaction of Performance Targets] This is to certify that you are the holder of a Cash Award in the form stated in the table above. The Cash Award was granted on the

[insert name of company who granted the award pursuant to the long term incentive plan (LTIP)] (Company) [insert name of LTIP] (Plan) Name Number of Shares under Award Date of Grant Normal Vesting date[, subject to satisfaction of Performance Targets] End of Holding Period This is to certify that you are the holder of a Contingent Award to acquire up to the maximum number of Shares in [insert name of Company whose shares are being granted under award] as stated

This Deed is entered into on [insert date on which the deed is executed] by [insert name of the company granting the Awards] whose registered office is at [insert address of registered office] (Company). By this Deed, the Company hereby grants Awards pursuant to [insert the name of the plan pursuant to which the Awards are granted] (LTIP) to the Eligible Employees, of the type, at the Option Price (where applicable), and in respect of the number of [insert class of shares and nominal value of shares which are being granted under Award] (Shares) as set out in