Support Agreement with AffiliateSupport Agreement • March 2nd, 2009 • Mount Vernon Securities Lending Trust
On September 25, 2008, an affiliate of the portfolio’s investment advisor (the “support provider”) entered into a support agreement (the “agreement”) with the portfolio that would prevent any losses realized on $40,000 principal amount of notes issued by Lehman Brothers Holdings, Inc. (“Lehman notes”) and held in the portfolio, or any losses realized on the portfolio's receivable for its Primary Fund redemption proceeds (up to a maximum loss on the receivable of $27,850), from causing the price at which the portfolio purchases and redeems its shares to drop below $1.00 per share. Generally, upon a sale or other ultimate disposition of Lehman notes or the receivable, or receipt of payment on the receivable that is less than the face amount of the receivable, the agreement obligates the support provider to make a cash contribution to the portfolio, up to the loss incurred upon the disposition, and subject to the maximum loss noted above with respect to the receivable, sufficient to resto
