Replies to post #108424 on Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

Extra Item on ECAPS' and CTs' Guarantee 'Parity' Clause:

The CTs' important covenant below have the ability to stop the ECAPS' distributions, since they are both in parity:

liabilities of Lehman Brothers Holdings,

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on a parity with the most senior preferred or preference stock now or hereafter issued by Lehman Brothers Holdings and with any guarantee now or hereafter entered into by Lehman Brothers Holdings in respect of any preferred securities of any affiliate of Lehman Brothers Holdings, and

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Any affiliate = controlled or non-controlled by prospectuses. The Framework Agreement says, for the avoidance of doubt, LBHI's affiliates equal controlled affiliates.

Then Lehman Brothers Holdings will not, and will not permit any subsidiary to:

make any payment of principal, interest or premium, if any, on or repay, repurchase or redeem any debt securities of Lehman Brothers Holdings that rank on a parity with or junior in interest to the junior subordinated debt securities or make any guarantee payments with respect to any guarantee by Lehman Brothers Holdings of the debt securities of any subsidiary of Lehman Brothers Holdings if such guarantee ranks on a parity with or junior in interest to such junior subordinated debt securities, other than

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dividends or distributions in common stock of Lehman Brothers Holdings,

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payments under the guarantee made by Lehman Brothers Holdings in respect of the trust securities of the trust,