Lehman Brothers Financial SA (LEHNQ)

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WITHOUT PREJUDICE
SUBJECT TO CONTRACT
4
appealable order or decision of the
court/appellate court having the effect that
statutory interest payable on the claim in respect
of the PLC Sub-Notes (“Claim D”) falls to be paid
in priority to the principal amount of the PLC
Sub-Debt (“Claim C”) (an “ECAPS Outcome”)), to
be applied:
👉️i. 94% to GP1; and
👉️ii. 6% to LBHI.
b. If LBHI prevails in relation to Priority Legal Issue 1
(in the form of a final and non-appealable order
or decision of the court/appellate court having
the effect that the principal amount of Claim C
falls to be paid in priority to statutory interest
payable on Claim D) (an “LBHI Outcome”), 100%
to LBHI.
Once Tier Y Distributions in respect of (a) or (b) above
have been made which👉️ total £225m (the “Maximum
Tier Y Distributions”), any further distributions shall
be Tier Z Distributions (defined below).
iii. Tier Z: (subject to the Tier Z Distribution Condition) any
and all further Available Funds after payment of the Tier
X Distributions and the Maximum Tier Y Distributions in
full will be distributed by the PLC Administrators as
follows:
a. If there is an ECAPS Outcome in relation to
Priority Legal Issue 1, to be split 42% (GP1) and
58% (LBHI);
b. If there is an LBHI Outcome in relation to Priority
Legal Issue 1, to be split 12% (GP1) and 88%
(LBHI);
(the “Tier Z Distributions”).
The Parties will use reasonable endeavours to agree and
incorporate into the Framework Agreement provision as to the
economic split of Tier Y and Tier Z in the event that, at the
conclusion of the current court directions application process
(including any appeals) there is neither an ECAPS Outcome nor an
LBHI Outcome to Priority Legal Issue 1. If the Parties are unable to
agree such split by the time of signing the Framework Agreement,
the Framework Agreement shall include a provision requiring the
Parties in such a scenario to consult and negotiate in good faith to
reach agreement as to the distribution of Tier Y and Tier Z
consistent with the Framework Agreement and any judgment or
order which the court/appellate court may have made on Priority
Legal Issue 1.