Document:

Exhibit
4.03

CUSIP
NO. 52517PP47

ISIN NO. US52517PP477

 

	
  REGISTERED

  	
  PRINCIPAL AMOUNT: $1,370,000

  
	
  No. R-1

  	
   

  

 

LEHMAN BROTHERS HOLDINGS INC.

MEDIUM-TERM NOTE, SERIES I

CRUDE OIL-LINKED SINGLE BARRIER SYNTHETIC
REVERSE CONVERTIBLE NOTE

DUE NOVEMBER 23, 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 Maturity Date, an amount
equal to the Redemption Amount.  

The
“Maturity Date” is November 23, 2007, or if such day is not a Business Day, on
the next following Business Day.

The “Redemption Amount”
is the amount equal to the sum of (a) the principal amount of the Notes plus
(b) the Fixed Return plus (c) if Crude OilREF is equal to or less than the Lower Barrier on
any Exchange Business Day during the Observation Period, the Principal
Adjustment Amount.

The “Fixed Return” is a
single U.S. Dollar payment equal to the principal amount of the Notes
multiplied by 9.05%.

The “Principal Adjustment
Amount” is an amount equal to the principal amount of the Notes multiplied by
the lesser of (a) the Crude Oil Return, and (b) 0%.

The “Observation Period”
is the period from and including the Trade Date to and including the Valuation
Date.

The “Trade Date” is
November 14, 2006.

The “Valuation Date” is 5
Exchange Business Days prior to the Maturity Date; provided that, if a
Disruption Event is in effect on the scheduled Valuation Date, the Valuation
Date may be postponed (as described below).

“Crude OilREF” is, for any Exchange
Business Day within the Observation Period, the Crude Oil Price on such
Exchange Business Day.  Crude OilREF on the Valuation Date shall equal the Final
Crude Oil Price.

“Crude Oil” is light
sweet crude oil.

The “Crude Oil Contract”
is the December 2007 futures contract for Crude Oil, which is the Crude Oil
futures contract scheduled for settlement in December 2007, traded on the
Relevant Exchange.

The “Lower Barrier” is
$49.8525, equal to the Crude Oil Strike multiplied by 75%.

The “Crude Oil Strike” is
$66.47, equal to the Crude Oil Price on the Trade Date.

The “Final Crude Oil
Price” is the Crude Oil Price on the Valuation Date.

 2
 

 

 

The “Crude Oil Return” is
a quotient, (x) the numerator of which is the Final Crude Oil Price minus the
Crude Oil Strike and (y) the denominator of which is the Crude Oil Strike.

The “Relevant Exchange”
is the NYMEX Division, or its successor, of the New York Mercantile Exchange,
Inc., or its successor; or, if NYMEX is no longer the principal exchange or
trading market for Crude Oil options or futures contracts, such other exchange
or principal trading market for Crude Oil as determined in good faith by the
Calculation Agent which serves as the source of prices for Crude Oil, and any
principal exchanges where options or futures contracts on Crude Oil are traded.

An “Exchange Business
Day” is a day, as determined by the Calculation Agent, on which the Relevant
Exchange is scheduled to be (or, but for the occurrence of a Disruption Event,
would have been) open for trading during its regular trading session
(notwithstanding the Relevant Exchange closing prior to its scheduled closing
time).

If a Disruption Event
identified in clauses (A), (B) or (C) below is in effect on any Exchange
Business Day during the Observation Period to but excluding the earlier of (i)
the Valuation Date and (ii) the Exchange Business Day on which Crude OilREF was first equal to or less than the Lower
Barrier, the Calculation Agent will determine Crude OilREF applicable to such Exchange Business Day in
accordance with the Fallback Price Determination below.  If a Disruption Event identified in clauses
(D) or (E) below is in effect on any such Exchange Business Day, the
Calculation Agent will determine Crude OilREF applicable to
such Exchange Business Day in its sole and absolute discretion taking into
account the latest available quotation for the Crude Oil Price and any other
information that in good faith it deems relevant.

If Crude OilREF was equal to or less than the Lower Barrier on
any Exchange Business Day during the Observation Period and, on the Valuation
Date, a Disruption Event identified in clauses (A), (B) or (C) below is in
effect, the Valuation Date will be postponed to, and the Calculation Agent will
determine the Final Crude Oil Price on, the first Exchange Business Day
succeeding the Valuation Date on which no Disruption Event is occurring;
provided that if a Disruption Event is occurring on each of the three scheduled
Exchange Business Days succeeding the Valuation Date, such third scheduled
Exchange Business Day shall be deemed the Valuation Date and the Calculation
Agent will determine the Final Crude Oil Price on such third scheduled Exchange
Business Day succeeding the Valuation Date in accordance with the Fallback
Price Determination below.  If Crude OilREF was less than or equal to the Lower Barrier on
any Exchange Business Day during the Observation Period and, on the Valuation
Date, a Disruption Event identified in clauses (D) or (E) below is in effect,
the Calculation Agent will determine the Final Crude Oil Price on the Valuation
Date in its sole and absolute discretion, taking into account the latest
available quotation for the settlement price of the Crude Oil Contract and any
other information that in good faith it deems relevant.

A “Disruption Event”
means any of the following events as determined in good faith by the
Calculation Agent:

(A)   the suspension
of or material limitation on trading in the Crude Oil Contract or Crude Oil, or
futures contracts or options related to the Crude Oil Contract or Crude Oil, on
the Relevant Exchange;

 3
 

 

 

(B)   either (i) the
failure of trading to commence, or permanent discontinuance of trading, in the
Crude Oil Contract or Crude Oil, or futures contracts or options related to the
Crude Oil Contract or Crude Oil, on the Relevant Exchange, or (ii) the
disappearance of, or of trading in, Crude Oil;

(C)   the failure of
the Relevant Exchange to publish the official daily settlement price for that
day for the Crude Oil Contract (or the information necessary for determining
the settlement price);

(D)   the occurrence
since the Trade Date of a material change in the content, composition, or
constitution of Crude Oil or the Crude Oil Contract; or

(E)   the occurrence
since the Trade Date of a material change in the formula for or the method of
calculating the settlement price of the Crude Oil Contract.

For the purpose of
determining whether a Disruption Event has occurred:

(1)   a limitation on
the hours in a trading day and/or number of days of trading will not constitute
a Disruption Event if it results from an announced change in the regular
business hours of the Relevant Exchange;

(2)   a suspension in
trading on the Relevant Exchange (without taking into account any extended or
after-hours trading session), in the Crude Oil Contract, by reason of a price
change reflecting the maximum permitted price change from the previous trading
day's settlement price will constitute a Disruption Event; and

(3)   a suspension of
or material limitation on trading on the Relevant Exchange will not include any
time when the Relevant Exchange is closed for trading under ordinary
circumstances.

In the event that the
“Fallback Price Determination” is invoked, the Calculation Agent will determine
Crude OilREF applicable to the relevant Exchange Business
Day, or the Final Crude Oil Price on the Valuation Date, as the case may be, by
requesting four leading dealers in Crude Oil (selected in the sole discretion
of the Calculation Agent) (the “Reference Dealers”) to provide price quotations
for the relevant Crude OilREF or the Final Crude Oil Price.  If at least two quotations are provided, the
relevant Crude OilREF or the Final Crude Oil Price, as the case may
be, will be the arithmetic mean of such quotations.  If only one Reference Dealer provides a price
quotation, then the Calculation Agent, in its sole discretion, will determine
whether that quotation is reasonable to be used.  If the Calculation Agent determines that such
single price quotation is not reasonable to be used, or if no price quotation
is provided, the Calculation Agent will determine the relevant Crude OilREF or the Final Crude Oil Price, as the case may
be, in its sole and absolute discretion taking into account the latest
available quotation for the settlement price of the Crude Oil Contract and any
other information that in good faith it deems relevant.

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.

 4
 

 

 

The “Calculation Agent” means Lehman Brothers Commodity Services Inc.

Except
as provided below, the Redemption Amount, if any, 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 any Redemption Amount will be made in immediately available funds in
accordance with the normal procedures of the Trustee (or any duly appointed
Paying Agent).

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.$” or “$” or “USD” 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.

 5
 

 

 

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:  November 21, 2006

 

	
  [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

  	
   

  

 

 6

 

[REVERSE
OF NOTE]

LEHMAN BROTHERS
HOLDINGS INC.

MEDIUM-TERM NOTES, SERIES I
PRINCIPAL PROTECTED GLOBAL CASH BASKET
FX-LINKED NOTE
DUE MAY 19, 2008

Section 1.  General.  This Note is one of a duly authorized series
of Notes of the Company designated as the Medium-Term Notes, Series I, Principal Protected Global Cash 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 662¤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
Additional 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 Additional 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 herein above 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 Additional 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 Additional 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 $1,000 or whole multiples of $1,000, 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 Redemption 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 Redemption Amount calculated as though
the date to which the maturity has been accelerated were the Maturity Date as
determined by the Calculation Agent.

Section 9.  No
Recourse Against Certain Persons.  No
recourse for the payment of the Additional 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.  Defined
Terms.  All terms used but not
defined in this Note are used herein as defined in the Indenture.

Section 11.  GOVERNING LAW.  THIS NOTE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.Exhibit
10.1

SUMMARY
OF TERMS OF RECIPROCAL USE AGREEMENT

·                  Advance
America, Cash Advance Centers, Inc. (the “Company”) and Arizona, LLC (“Arizona”)
each own a [Redacted] (the “Aircraft”), both of which are based at the same
airport.

·                  For
each flight hour and each pilot hour used by the Company or Arizona,
respectively, on the other entity’s Aircraft, the other entity is entitled to
one flight hour and one pilot hour on the first entity’s Aircraft, and
vice-versa.

·                  Any
use of the Company’s Aircraft by George D. Johnson, Jr. or other sublessees of
Arizona, including William M. Webster, IV, the Company’s Vice Chairman, and
entities that Mr. Johnson controls or in which he has an ownership interest, is
deemed to be use by Arizona.

·                  The
Company and Arizona may owe the other party no more than 50 flight hours and
100 pilot hours of reciprocal use at any point in time, and accrued flight
hours or pilot hours in excess of those limits will be paid at a rate per
flight hour or pilot hour, as applicable, to be agreed upon by the Company and
Arizona and approved by the Company’s Board of Directors prior to either party
exceeding an accumulated right to 50 flight hours or 100 pilot hours.

·                  Arizona
and the Company are each responsible for all other charges attributable to its
respective operation of either Aircraft.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]