Master Agreement Termination

This section provides an update for counterparties and stakeholders of Lehman Brothers International (Europe) (in administration) ("LBIE") on the termination of Master Agreements.

The termination of Master agreements entered into between LBIE and its associated counterparties is one of the most significant areas of work for the LBIE Administrators.

Lehman Brothers was involved in a high volume of trading activity; there are over 10,000 Master Agreements requiring review and over 3,000 active trading counterparties.

In the period since 15th September 2008 a large volume of master agreement termination related correspondence has been received by LBIE. This correspondence relates to both Termination Notices, informing the Administrators of a counterparty's intention to terminate trades under the master agreement, and subsequently, Close-Out Valuations Statements ("Close-Outs") which include the value of the trades under the master agreement pending agreement by the LBIE Administrators. In addition to the above correspondence a large number of master agreement and derivative related queries have been received which we are currently working to address.

Please note that the email account for queries related to this topic is as follows.

unsecuredcreditors@lbia-eu.com.

If correspondence is sent to this address it will enter our query management system where it will be logged, tracked and addressed.

Please note that no admission is made as to the validity of any notices received by LBIE or as to the completeness, accuracy or valuation of any items alleged by counterparties in any amount specified in any Valuation Notice.