Document:

Exhibit
4.01

 

CUSIP NO. 52517PZU8

 

	
  REGISTERED

  	
   

  	
  PRINCIPAL AMOUNT:
  $7,680,000

  
	
  No. R-1

  	
   

  	
   

  

 

 

LEHMAN BROTHERS HOLDINGS
INC.

 

MEDIUM-TERM NOTE, SERIES
H

 

PRINCIPAL
PROTECTED USD-ASIAN BASKET FX-LINKED NOTE
DUE MARCH 27, 2007

 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY OR A
NOMINEE OF THE DEPOSITORY.  UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE COMPANY (AS DEFINED
BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER
NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
CERTIFICATED FORM (A “CERTIFICATED NOTE”), THIS GLOBAL SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY
OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.

 

 

 

LEHMAN BROTHERS HOLDINGS
INC., a corporation duly organized and existing under the laws of the State of
Delaware (herein called the “Company,” which term includes any successor
corporation under the Indenture referred to on the reverse hereof), for value
received, hereby promises to pay to CEDE & Co., or registered assigns, on
the Stated Maturity Date, an amount equal to the Repayment Amount.  The Notes do not bear interest. No payments
on the Notes will be made until the Stated Maturity Date.

 

The “Stated Maturity Date”
is March 27, 2007, or if such day is not a Business Day, on the next following
Business Day, provided that if the Valuation Date for any Basket Currency is
postponed as described below, then the Maturity Date will be two Business Days
following the latest postponed Valuation Date.

 

The Repayment Amount, for
each $1 principal amount of the Notes represented hereby, is the amount equal
to the sum of (a) $1 plus (b) the
Additional Amount.

 

The “Additional Amount”,
for each $1 principal amount of the Notes represented hereby, equals the
greater of (i) zero and (ii) the difference between the Final Basket Value
minus the Initial Basket Value.

 

The “Initial Basket Value”
equals $1.

 

The “Basket Currencies”
are the Japanese Yen (“JPY”), Chinese
Yuan (“CNY”), Singaporean Dollar (“SGD”), Taiwanese Dollar (“TWD”), Korean Won
(“KRW”), Thai Baht (“THB”), Australian Dollar (“AUD”), and Indonesian Rupiah (“IDR”).

 

The “Final Basket
Value” equals the sum of:

 

(i) a quotient, the numerator of which is 13.4450000 and the
denominator of which is the Final Currency Value for JPY plus

 

(ii) a quotient, the numerator of which is 1.034562500 and the
denominator of which is the Final Currency Value for CNY plus

 

(iii) a quotient, the numerator of which is 0.20797500 and the
denominator of which is the Final Currency Value for SGD plus

 

(iv) a quotient, the numerator of which is 3.91125000 and the
denominator of which is the Final Currency Value for TWD plus

 

(v) a quotient, the numerator of which is 125.37500
and
the denominator of which is the Final Currency Value for KRW plus

 

(vi) a quotient, the numerator of which is 5.0837500 and the
denominator of which is the Final Currency Value for THB plus

 

(vii) a quotient, the numerator of which is 0.16297500 and the
denominator of which is the Final Currency Value for AUD plus

 

2

 

(viii) a quotient, the numerator of which is 1202.250
and
the denominator of which is the Final Currency Value for IDR.

 

The “Final
Currency Value” of each Basket Currency equals the spot exchange rate between
the applicable Basket Currency and the U.S. Dollar expressed as the amount of
Basket Currency per U.S. Dollar for customary settlement in the interbank
market for each Basket Currency on the Valuation Date, as reported by Reuters
on the applicable page, or any substitute page, and at the approximate time set
forth in the following table:

 

	
  Basket

  Currency

  	
   

  	
  Reuters Page

  	
   

  	
  Rate

  	
   

  	
  Applicable

  Currency

  Business Day

  
	
  JPY

  	
   

  	
  JPNU

  	
   

  	
  Average of the bid and ask spot rates reported under
  the heading “DLR” at 3:00 p.m., Tokyo time

  	
   

  	
  Tokyo

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CNY

  	
   

  	
  SAEC

  	
   

  	
  Daily spot rate reported under the heading “USDCNY”

  	
   

  	
  Beijing

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SGD

  	
   

  	
  ABSIRFIX01

  	
   

  	
  Daily spot rate reported under the heading “SGD”

  	
   

  	
  Singapore

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TWD

  	
   

  	
  TAIFX1

  	
   

  	
  Reported under the heading “Spot” as of 11:00 a.m.,
  Taipei time

  	
   

  	
  Taipei

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KRW

  	
   

  	
  KFTC01

  	
   

  	
  Daily spot rate reported under the heading “MAR”

  	
   

  	
  Seoul

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THB

  	
   

  	
  ABSIRFIX01

  	
   

  	
  Daily spot rate reported under the heading “THB”

  	
   

  	
  Singapore

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AUD

  	
   

  	
  JPNU

  	
   

  	
  Quotient, the numerator of which is the average of
  the bid and ask spot rates reported under the heading “DLR” at 3:00 p.m.,
  Tokyo time and the denominator of which is the average of the bid and ask
  spot rates reported under the heading “AUD” at 3:00 p.m., Tokyo time

  	
   

  	
  Tokyo

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IDR

  	
   

  	
  ABSIRFIX01

  	
   

  	
  Daily spot rate reported under the heading “IDR”

  	
   

  	
  Singapore

  

 

The “Valuation Date” is, with respect to any Basket
Currency, the latest Currency Business Day for that Basket Currency that is at
least two Business Days prior to March 27, 2007, subject to postponement in the
event of a Market Disruption Event.

 

A “Currency
Business Day” is, with respect to any Basket
Currency, any day, other than a Saturday or Sunday, that is neither a
legal holiday nor a day on which commercial banks are authorized or required by
law, regulation or executive order to close (including for dealings in foreign
exchange in accordance with the practice of the foreign exchange market) in the
city listed above under “Applicable Currency Business Day” for that Basket
Currency.

 

A “Business Day”,
notwithstanding any provision in the Indenture, is any day that is not is not a
Saturday or Sunday and that is not a day on which banking institutions in New
York City generally are authorized or obligated by law or executive order to be
closed.

 

If no spot
quotation is available for a Basket Currency from the applicable Reuters page
described under “Final Currency Value” above or there occurs an event that
generally makes it impossible to convert any of the Basket Currencies into U.S.
dollars through customary legal channels, or to obtain a firm quote of any of
the exchange rates between the Basket Currencies and the U.S. dollar on the
Valuation Date, that, in the good faith determination of the

 

3

 

Calculation Agent, affects the valuation of the Final Basket Value or
the Company’s ability or any similarly situated party to hedge its exposure or
to unwind all or a material portion of a hedge with respect to this Note (“Market
Disruption Event”), then the Valuation Date for that Basket Currency will be
postponed to the next succeeding Currency Business Day for that Basket
Currency; provided, that if the Final Currency Value for any Basket Currency is
not capable of calculation as of the next succeeding Currency Business Day
because of an occurring or continuing Market Disruption Event, the Calculation
Agent will determine the Final Currency Value for that Basket Currency taking
into consideration all available information that in good faith it deems
relevant.

 

Except as provided below, the Repayment Amount may, at
the option of the Company, be made by check mailed to the person entitled
thereto at such person’s address as it appears on the registry books of the
Company.

 

Payment of the Repayment Amount will be made in
immediately available funds upon surrender of this Note at the corporate trust
office or agency of the Trustee (or any duly appointed Paying Agent) maintained
for that purpose in the Borough of Manhattan, New York City (the “Corporate
Trust Office”), provided that this Note is presented to the Trustee (or any
such Paying Agent) in time for the Trustee (or any such Paying Agent) to make
such payments in such funds in accordance with its normal procedures.

 

The Company will pay any administrative costs imposed
by banks in making payments in immediately available funds, but any tax,
assessment or governmental charge imposed upon payments hereunder, including,
without limitation, any withholding tax, will be borne by the Holder hereof.

 

References herein to “U.S. dollars” or “U.S.$” or “$”
are to the coin or currency of the United States as at the time of payment is
legal tender for the payment of public and private debts.

 

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS NOTE SET FORTH ON THE REVERSE HEREOF. 
SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS
IF SET FORTH AT THIS PLACE.

 

This Note shall not be valid or become obligatory for
any purpose until the certificate of authentication hereon shall have been
signed by the Trustee under the Indenture.

 

4

 

IN WITNESS WHEREOF, Lehman Brothers Holdings Inc. has
caused this instrument to be signed by its Chairman of the Board, its
President, its Vice Chairman, its Chief Financial Officer, one of its Vice
Presidents or its Treasurer, by manual or facsimile signature under its
corporate seal, attested by its Secretary or one of its Assistant Secretaries
by manual or facsimile signature.

 

	
  Dated: June 27,
  2005

  	
   

  
	
   

  	
   

  
	
  [SEAL]

  	
  LEHMAN BROTHERS
  HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

This is one of the Securities of the series designated herein referred
to in the within-mentioned Indenture.

 

 

	
  CITIBANK, N.A.

  	
   

  
	
    as
  Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Officer

  	
   

  
				

 

5

 

[REVERSE OF NOTE]

 

LEHMAN BROTHERS HOLDINGS
INC.

MEDIUM-TERM NOTES, SERIES H
PRINCIPAL PROTECTED USD-ASIAN BASKET
FX-LINKED NOTE
DUE MARCH 27, 2007

 

Section 1.  General.  This Note is one of a duly authorized series
of Notes of the Company designated as the Medium-Term Notes, Series H,
Principal Protected USD-Asian Basket FX-Linked Note (herein called the “Notes”).  The
Notes are one of an indefinite number of series of debt securities of the
Company (collectively, the “Securities”) issued or issuable under and pursuant
to an indenture dated as of September 1, 1987, as amended and supplemented (the
“Indenture”), duly executed and delivered by the Company and Citibank, N.A., as
Trustee (herein called the “Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the
Trustee, the Company and the holders of the Securities.  The separate series of Securities may be
issued in various aggregate principal amounts, may mature at different times,
may bear interest (if any) at different rates, may be subject to different
redemption provisions or repurchase rights (if any), may be subject to
different sinking, purchase or analogous funds (if any), may be subject to
different covenants and Events of Default and may otherwise vary as in the
Indenture provided.

 

Section 2.  Principal
Amount for Indenture Purposes.  For
the purpose of determining whether Holders of the requisite amount of Notes of
this series outstanding under the Indenture have made a demand, given a notice
or waiver or taken any other action, the principal amount of this Note will be
deemed to be the principal amount of this Note then outstanding.

 

Section 3.  Modification
and Waivers.  The Indenture contains
provisions permitting the Company and the Trustee, with the consent of the
Holders of not less than 66-2/3% in aggregate principal amount of each series
of the Securities at the time Outstanding to be affected, evidenced as in the
Indenture provided, to execute supplemental indentures adding any provisions to
or changing in any manner or eliminating any of the provisions of the Indenture
or of any supplemental indenture or modifying in any manner the rights of the
holders of the Securities of all such series; provided, however, that no such
supplemental indenture shall, among other things, (i) change the fixed maturity
of any Security, or reduce the Repayment Amount or the principal amount
thereof, or reduce the rate or extend the time of payment of interest thereon
or reduce any premium or other amount payable on redemption, or make the
Repayment Amount or the principal amount thereof, premium or other amount payable,
if any, or interest thereon payable in any coin or currency other than that
hereinabove provided, without the consent of the Holder of each Security so
affected, or (ii) change the place of payment on any Security, or impair the
right to institute suit for payment on any Security, or reduce the aforesaid
percentage of Securities, the holders of which are required to consent to any
such supplemental indenture, without the consent of the holders of each
Security so affected.  It is also
provided in the Indenture that, prior to any declaration accelerating the
maturity of any series of Securities, the holders of a majority in aggregate
principal amount of the Securities of such series

 

 

Outstanding may on behalf of the holders of all the Securities of such
series waive any past default or Event of Default under the Indenture with
respect to such series and its consequences, except a default in the payment of
interest, if any, on the Repayment Amount or the principal amount, or premium,
if any, on any of the Securities of such series, or in the payment of any
sinking fund installment or analogous obligation with respect to Securities of
such series.  Any such consent or waiver
by the Holder of this Note shall be conclusive and binding upon such Holder and
upon all future holders and owners of this Note and any Notes of this series
which may be issued in exchange or substitution herefor, irrespective of
whether or not any notation thereof is made upon this Note or such other Notes
of this series.

 

Section 4.  Obligations
Unconditional.  No reference herein
to the Indenture and no provisions of this Note or of the Indenture shall alter
or impair the obligation of the Company, which is absolute and unconditional,
to pay the Repayment Amount or the principal amount on this Note at the place,
at the respective times, at the rate, and in the coin or currency herein
prescribed.

 

Section 5.  Defeasance.  The Indenture contains provisions for the
discharge of the Indenture and defeasance at any time of the indebtedness on
this Note upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Note.

 

Section 6.  Authorized
Form and Denominations.  The Notes of
this series are issuable in registered form, without coupons.  Each Note will be issued initially as either
a Global Security or a Certificated Note, at the option of the Company, in
denominations of $10,000 or whole multiples of $10,000, either at the office or
agency to be designated and maintained by the Company for such purpose in the
Borough of Manhattan, New York City, pursuant to the provisions of the
Indenture or at any of such other offices or agencies as may be designated and
maintained by the Company for such purpose pursuant to the provisions of the
Indenture, and in the manner and subject to the limitations provided in the
Indenture, but without the payment of any service charge, except for any tax or
other governmental charges imposed in connection therewith.  Notes of this series are exchangeable for a
like aggregate principal amount of Notes of this series of a different
authorized denomination, except that Global Securities will not be exchangeable
for Certificated Notes of this series.

 

Section 7.  Registration
of Transfer.  As provided in the
Indenture and subject to certain limitations as therein set forth, the transfer
of this Note is registrable in the Security Register, upon surrender of this
Note for registration of transfer, at the Corporate Trust Office or agency in a
Place of Payment for this Note, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar requiring such written instrument of transfer duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Notes of this series, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

 

If at any time the Depository notifies the Company
that it is unwilling or unable to continue as Depository or if at any time the
Depository shall no longer be eligible under the Indenture, the Company shall
appoint a successor Depository.  If a
successor Depository for the Notes of this series is not appointed by the Company
within 90 days after the Company receives such notice or becomes aware of such
ineligibility, the Company will issue, and the Trustee will

 

 

authenticate and deliver, Notes of this series in definitive form in an
aggregate principal amount equal to the principal amount of this Note.

 

No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection therewith.

 

Prior to due presentment of this Note for registration
of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the person in whose name this Note is registered as the owner
hereof for all purposes, and neither the Company nor the Trustee nor any agent
of the Company or of the Trustee shall be affected by any notice to the
contrary.

 

Section 8.  Events
of Default.  If an Event of Default
with respect to Notes of this series shall occur and be continuing, the amount
declared due and payable upon any acceleration of the Notes will be determined
by the Calculation Agent and will equal the Repayment Amount calculated as
though the maturity of the Notes were the date of early repayment in the manner
and with the effect provided in the Indenture. 
The amount payable to the Holder hereof upon any acceleration permitted
under the Indenture will be equal to the Repayment Amount calculated as though
the date to which the maturity has been accelerated were the Stated Maturity
Date as determined by the Calculation Agent.

 

Section 9.  No
Recourse Against Certain Persons.  No
recourse for the payment of the Repayment Amount or for any claim based hereon
or otherwise in respect hereof, and no recourse under or upon any obligation,
covenant or agreement of the Company in the Indenture or any Indenture
supplemental thereto or in any Note, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or of any successor corporation, either directly or through the Company
or any successor corporation, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty or otherwise,
all such liability being, by the acceptance hereof and as part of the
consideration for the issue hereof, expressly waived and released.

 

Section 10.  Tax
Treatment.  The Company agrees, and
by acceptance of beneficial ownership interest in the Notes of this series,
each Holder of such Notes will be deemed to have agreed, for United States
federal income tax purposes, (i) to treat the Notes of this series as
indebtedness that is subject to Treas. Reg. Sec. 1.1275-4 (the “Contingent
Payment Regulations”) and (ii) to be bound by the Company’s determination of
the “comparable yield” and “projected payment schedule,” within the meaning of
the Contingent Payment Regulations, with respect to the Notes of this series.

 

Section 11.  Defined Terms.  All terms used but not defined in this Note
are used herein as defined in the Indenture.

 

Section 12.  GOVERNING
LAW.  THIS NOTE SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

6Exhibit 4.02

 

CALCULATION AGENCY AGREEMENT

 

CALCULATION AGENCY AGREEMENT,
dated as of June 27, 2005 (this “Agreement”), between Lehman Brothers
Holdings Inc. (the “Company”) and Lehman Brothers International
(Europe), as Calculation Agent.

 

WHEREAS, the Company proposes to issue and sell its
Principal Protected USD-Asian Basket FX-Linked Notes (the “Notes”) from time to time;

 

WHEREAS, the terms of the Notes are described in a
pricing supplement (in connection with the performance by the Calculation Agent
of its services hereunder with respect to the Notes, the pricing supplement
relating to the Notes is referred to herein as the “relevant Pricing
Supplement”) to the prospectus supplement dated May 18, 2005 and the
prospectus dated May 18, 2005;

 

WHEREAS, the Notes will be issued under an Indenture,
dated as of September 1, 1987, between the Company and Citibank, N.A., as
Trustee (the “Trustee”), as supplemented and amended by supplemental
indentures dated as of November 25, 1987, November 27, 1990, September 13,
1991, October 4, 1993, October 1, 1995, and June 26, 1997, and incorporating
Standard Multiple Series Indenture Provisions dated July 30, 1987, as amended
November 16, 1987 (collectively, the “Indenture”); and

 

Whereas, the Company requests the Calculation Agent to
perform certain services described herein in connection with the Notes;

 

Now Therefore, the Company and the Calculation Agent
agree as follows:

 

1.             Appointment of Agent.  The Company hereby appoints Lehman Brothers
International (Europe) as Calculation Agent and Lehman Brothers International
(Europe) hereby accepts such appointment as the Company’s agent for the purpose
of performing the services hereinafter described upon the terms and subject to
the conditions hereinafter mentioned.

 

2.             Calculations and Information
Provided.  In response to a request
made by the Trustee for a determination of the Repayment Amount with respect to
any series of the Notes, the Calculation Agent shall determine the Repayment
Amount (as set forth below) on the Valuation Date (as defined below) in
accordance with the terms of the Notes and this Agreement and notify the
Trustee of its determination.  In
addition, the Calculation Agent shall also be responsible for determining each
of the following items for the Notes, to the extent applicable:

 

(a)           whether a Market
Disruption Event (as defined below) has occurred;

 

(b)           the applicable
Valuation Date for any Basket Currency; and

 

(c)           any other
calculation, determination or adjustment specified as being made by the Calculation
Agent in this Agreement, the relevant Pricing Supplement or the Notes.

 

 

3.             Calculations.  Any calculation or determination by the
Calculation Agent pursuant hereto shall be made at the sole discretion of the
Calculation Agent and shall (in the absence of manifest error) be final and
binding.  Any calculation made by the
Calculation Agent hereunder shall, at the Trustee’s request, be made available
at the Corporate Trust Office. The procedures the Calculation Agent will use to
determine the information described herein with respect to the Notes is set
forth as follows:

 

(a)   On the Valuation Date, the
Calculation Agent shall calculate the Repayment Amount for the Notes. The
Repayment Amount, for each $1 principal amount of the Notes, is the amount equal
to the sum of (a) $1 plus (b) the
Additional Amount.

 

(i)            The “Additional
Amount”, for each $1 principal amount of the Notes, equals the greater of
(i) zero and (ii) the difference between the Final Basket Value minus the
Initial Basket Value.

 

(ii)           The “Initial
Basket Value” equals $1.

 

(iii)          The “Final
Basket Value” equals the sum of:

 

a.               a quotient, the
numerator of which is 13.4450000 and the denominator of which is the Final
Currency Value for Japanese Yen (“JPY”) plus

 

b.              a
quotient, the numerator of which is 1.034562500 and the denominator of which is
the Final Currency Value for Chinese Yuan (“CNY”) plus

 

c.               a quotient, the
numerator of which is 0.20797500 and the denominator of which is the Final
Currency Value for Singaporean Dollar (“SGD”) plus

 

d.              a quotient, the
numerator of which is 3.91125000 and the denominator of which is the Final
Currency Value for Taiwanese Dollar (“TWD”) plus

 

e.               a
quotient, the numerator of which is 125.37500 and the denominator of which is
the Final Currency Value for Korean Won (“KRW”) plus

 

f.                  a quotient,
the numerator of which is 5.0837500 and the denominator of which is the Final
Currency Value for Thai Baht (“THB”) plus

 

g.              a quotient, the
numerator of which is 0.16297500 and the denominator of which is the Final
Currency Value for Australian Dollar (“AUD”) plus

 

h.              a quotient, the numerator of which is 1202.250
and the denominator of which is the
Final Currency Value for Indonesian Rupiah (“IDR”).

 

2

 

(iv)          The “Final
Currency Value” equals the value of each Basket Currency represented
by the spot exchange rate between the applicable Basket Currency and the U.S.
Dollar expressed as the amount of Basket Currency per U.S. Dollar for customary
settlement in the interbank market for each Basket Currency on the Valuation
Date, as reported by Reuters on the applicable page, or any substitute page,
and at the approximate time set forth in the following table:

 

	
  Basket

  Currency

  	
   

  	
  Reuters
  Page

  	
   

  	
  Rate

  	
   

  	
  Applicable

  Currency

  Business Day

  
	
  JPY

  	
   

  	
  JPNU

  	
   

  	
  Average of
  the bid and ask spot rates reported under the heading “DLR” at 3:00 p.m.,
  Tokyo time

  	
   

  	
  Tokyo

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CNY

  	
   

  	
  SAEC

  	
   

  	
  Daily spot
  rate reported under the heading “USDCNY”

  	
   

  	
  Beijing

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SGD

  	
   

  	
  ABSIRFIX01

  	
   

  	
  Daily spot
  rate reported under the heading “SGD”

  	
   

  	
  Singapore

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TWD

  	
   

  	
  TAIFX1

  	
   

  	
  Reported
  under the heading “Spot” as of 11:00 a.m., Taipei time

  	
   

  	
  Taipei

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KRW

  	
   

  	
  KFTC01

  	
   

  	
  Daily spot
  rate reported under the heading “MAR”

  	
   

  	
  Seoul

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THB

  	
   

  	
  ABSIRFIX01

  	
   

  	
  Daily spot
  rate reported under the heading “THB”

  	
   

  	
  Singapore

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AUD

  	
   

  	
  JPNU

  	
   

  	
  Quotient,
  the numerator of which is the average of the bid and ask spot rates reported
  under the heading “DLR” at 3:00 p.m., Tokyo time and the denominator of which
  is the average of the bid and ask spot rates reported under the heading “AUD”
  at 3:00 p.m., Tokyo time

  	
   

  	
  Tokyo

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IDR

  	
   

  	
  ABSIRFIX01

  	
   

  	
  Daily spot
  rate reported under the heading “IDR”

  	
   

  	
  Singapore

  

 

The “Valuation
Date” is, with respect to any Basket Currency, the latest Currency Business
Day for that Basket Currency that is at least two Business Days prior to March
27, 2007, subject to postponement in the event of a Market Disruption Event.

 

A “Currency Business Day” is, with respect to any Basket Currency, any day, other than a Saturday
or Sunday, that is neither a legal holiday nor a day on which commercial banks
are authorized or required by law, regulation or executive order to close
(including for dealings in foreign exchange in accordance with the practice of
the foreign exchange market) in the city listed above under “Applicable
Currency Business Day” for that Basket Currency.

 

A “Business Day”, notwithstanding any provision in the
Indenture, is any day that is not is not a Saturday or Sunday and that is not a
day on which banking institutions in New York City generally are authorized or
obligated by law or executive order to be closed.

 

(b)   If no spot quotation is available for a Basket Currency from the
applicable Reuters page described under “Final Currency Value” above or there
occurs an event that generally makes it impossible to convert any of the Basket
Currencies into U.S. dollars through customary legal channels, or to obtain a
firm quote of any of the exchange rates between the Basket Currencies and the
U.S. dollar on the Valuation Date, that, in the good faith determination of the
Calculation Agent, affects the valuation of the Final Basket Value or the

 

3

 

Company’s ability or any
similarly situated party to hedge its exposure or to unwind all or a material
portion of a hedge with respect to this Note (“Market Disruption Event”),
then the Valuation Date for that Basket Currency will be postponed to the next
succeeding Currency Business Day for that Basket Currency; provided,
that if the Final Currency Value for any Basket Currency is not capable of
calculation as of the next succeeding Currency Business Day because of an
occurring or continuing Market Disruption Event, the Calculation Agent will
determine the Final Currency Value for that Basket Currency taking into
consideration all available information that in good faith it deems relevant.

 

(c)   The Calculation Agent shall
notify the Trustee of all such calculations, determinations and adjustment or
if a Market Disruption Event with respect to a series of Notes has occurred.

 

4.             Fees and Expenses.  The Calculation Agent shall be entitled to
reasonable compensation for all services rendered by it as agreed to between
the Calculation Agent and the Company.

 

5.             Terms and Conditions.  The Calculation Agent accepts its obligations
herein set out upon the terms and conditions hereof, including the following,
to all of which the Company agrees:

 

(a)           in acting under this
Agreement, the Calculation Agent is acting solely as an independent expert and
not as an agent of the Company and does not assume any obligation toward, or
any relationship of agency or trust for or with, any of the holders of the
Notes;

 

(b)           unless otherwise
specifically provided herein, any order, certificate, notice, request,
direction or other communication from the Company or the Trustee made or given
under any provision of this Agreement shall be sufficient if signed by any
person who the Calculation Agent reasonably believes to be a duly authorized
officer or attorney-in-fact of the Company or the Trustee, as the case may be;

 

(c)           the Calculation
Agent shall be obliged to perform only such duties as are set out specifically
herein and any duties necessarily incidental thereto;

 

(d)           the Calculation
Agent, whether acting for itself or in any other capacity, may become the owner
or pledgee of Notes with the same rights as it would have had if it were not
acting hereunder as Calculation Agent; and

 

(e)           the Calculation
Agent shall incur no liability hereunder except for loss sustained by reason of
its gross negligence or wilful misconduct.

 

6.             Resignation; Removal; Successor.  (a) 
The Calculation Agent may at any time resign by giving written notice to
the Company of such intention on its part, specifying the date on which its
desired resignation shall become effective, subject to the appointment of a
successor Calculation Agent and acceptance of such appointment by such
successor Calculation Agent, as hereinafter provided.  The Calculation Agent hereunder may be
removed at any time by the filing with it of an instrument in writing signed by
or on behalf of the Company and specifying such removal and the date when it
shall become effective.  Such resignation
or

 

4

 

removal shall take effect upon
the appointment by the Company, as hereinafter provided, of a successor
Calculation Agent and the acceptance of such appointment by such successor
Calculation Agent.  In the event a
successor Calculation Agent has not been appointed and has not accepted its
duties within 90 days of the Calculation Agent’s notice of resignation, the
Calculation Agent may apply to any court of competent jurisdiction for the
designation of a successor Calculation Agent.

 

(b)           In case at any time the Calculation Agent
shall resign, or shall be removed, or shall become incapable of acting, or
shall be adjudged bankrupt or insolvent, or make an assignment for the benefit
of its creditors or consent to the appointment of a receiver or custodian of
all or any substantial part of its property, or shall admit in writing its
inability to pay or meet its debts as they mature, or if a receiver or
custodian of it or all or any substantial part of its property shall be
appointed, or if any public officer shall have taken charge or control of the
Calculation Agent or of its property or affairs, for the purpose of
rehabilitation, conservation or liquidation, a successor Calculation Agent
shall be appointed by the Company by an instrument in writing, filed with the
successor Calculation Agent.  Upon the
appointment as aforesaid of a successor Calculation Agent and acceptance by the
latter of such appointment, the Calculation Agent so superseded shall cease to
be Calculation Agent hereunder.

 

(c)           Any successor Calculation Agent appointed
hereunder shall execute, acknowledge and deliver to its predecessor, to the
Company and to the Trustee an instrument accepting such appointment hereunder
and agreeing to be bound by the terms hereof, and thereupon such successor
Calculation Agent, without any further act, deed or conveyance, shall become
vested with all the authority, rights, powers, trusts, immunities, duties and
obligations of such predecessor with like effect as if originally named as
Calculation Agent hereunder, and such predecessor, upon payment of its charges
and disbursements then unpaid, shall thereupon become obligated to transfer,
deliver and pay over, and such successor Calculation Agent shall be entitled to
receive, all moneys, securities and other property on deposit with or held by
such predecessor, as Calculation Agent hereunder.

 

(d)           Any corporation into which the
Calculation Agent hereunder may be merged or converted or any corporation with
which the Calculation Agent may be consolidated, or any corporation resulting from
any merger, conversion or consolidation to which the Calculation Agent shall be
a party, or any corporation to which the Calculation Agent shall sell or
otherwise transfer all or substantially all of the assets and business of the
Calculation Agent shall be the successor Calculation Agent under this Agreement
without the execution or filing of any paper or any further act on the part of
any of the parties hereto.

 

7.             Certain Definitions.  Capitalized terms not otherwise defined
herein are used herein as defined in the Notes or, if not defined in the Notes,
as defined in the Indenture.

 

8.             Indemnification.  The Company will indemnify the Calculation
Agent against any losses or liability which it may incur or sustain in
connection with its appointment or the exercise of its powers and duties
hereunder except such as may result from the gross negligence or wilful
misconduct of the Calculation Agent or any of its agents or employees.  The Calculation Agent shall incur no
liability and shall be indemnified and held harmless by the Company for or in
respect of any action taken or suffered to be taken in good faith by the
Calculation Agent in reliance upon written instructions from the Company.

 

5

 

9.             Notices.  Any notice required to be given hereunder
shall be delivered in person, sent (unless otherwise specified in this
Agreement) by letter, telex or facsimile transmission or communicated by
telephone (confirmed in a writing dispatched within two Business Days), (a) in
the case of the Company, to it at 745 Seventh Avenue, New York, New York 10019
(facsimile: (646) 758-3204) (telephone: (212) 526-7000), Attention: Treasurer,
with a copy to 399 Park Avenue, New York, New York 10022 (facsimile: (212)
526-0357) (telephone: (212) 526-7000), Attention: Corporate Secretary, (b) in
the case of the Calculation Agent, to it at Lehman Brothers International
(Europe), 25 Bank Street, London E14 5LE, England (facsimile: (44 20 7102 2049)
(telephone: 44 20 7102 2443), Attention: Calculation Agent and (c) in the case
of the Trustee, to it at 111 Wall Street, 5th Floor, New York, New York 10043
(facsimile: (212) 657-3836) (telephone: 
(212) 657-7805), Attention: Corporate Trust Department or, in any case,
to any other address or number of which the party receiving notice shall have
notified the party giving such notice in writing.  Any notice hereunder given by telex,
facsimile or letter shall be deemed to be served when in the ordinary course of
transmission or post, as the case may be, it would be received.

 

10.           Governing
Law.  This Agreement shall be governed by and
continued in accordance with the laws of the State of New York.

 

11.           Counterparts.  This Agreement may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.

 

12.           Benefit of Agreement.  This Agreement is solely for the benefit of
the parties hereto and their successors and assigns, and no other person shall
acquire or have any rights under or by virtue hereof.

 

6

 

In Witness Whereof,
this Agreement has been entered into as of the day and year first above
written.

 

 

	
   

  	
  Lehman Brothers Holdings Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lehman Brothers International (europe),

  
	
   

  	
  as Calculation Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

7

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