1 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION 2 3 TRANSCRIPT OF RECORDED TELEPHONE CONVERSATIONS 4 FILE NAME: OSNATO Decl Ex 27 Ledford9-15-08933am-1 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2 1 MR. MONTGORIS: -- is that we value the position 2 from a fair value basis at 80. At this early stage, to me 3 that seems like we've got, you know, a fairly substantial 4 rationale for picking that value. I don't know if anybody 5 else -- 6 MR. ARTINIAN: I agree -- I agree, Bill. 7 MS. ALBICOCCO: I have a question. Do we have 8 to do it at this moment, or is there any benefit in coming 9 back in an hour, or a half-hour, or -- 10 BRUCE II: We're going to go -- we're going to 11 -- we're supposed to be looking at this on a daily basis, 12 anyway. So, I mean, I don't see any difference in -- 13 MS. ALBICOCCO: Okay. 14 [Speaking simultaneously.] 15 STEWART: You know, this is [inaudible] -- 16 MR. ARTINIAN: The next time we can look at it, 17 Santa, would be tomorrow, right? I mean, we're going to 18 look at it tomorrow. 19 STEWART: The only thing I would say is that if 20 -- if there are any -- if there are any material events 21 during the day that management thinks impact on the -- the 22 values that you've arrived at this morning, I think we 23 probably should re-convene. 24 BRUCE II: Good point. 25 MS. ALBICOCCO: Okay. 3 1 ROSE: I mean, Bruce, are you guys still doing 2 intra-day pricings and redemptions? So, are you -- are you 3 honoring redemptions today at, let's say, 11:00 o'clock? 4 Because, that's the [break in recording] and this 5 needs [break in recording] needs to be done today, this 6 morning, rather. 7 BRUCE II: Well, we're taking -- we're taking 8 redemptions, and we're striking N.A.V.s at those times. 9 ROSE: Okay. 10 BRUCE II: However, the -- all of the bankers 11 aren't necessarily sending out wires right away. So, our 12 custody bank is not necessarily sending out wires as soon 13 as they get instructions from us. 14 ROSE: So, all I'm saying is, but, in order to 15 strike the N.A.V., we need to come to a fair value 16 determination. So, in response to Santa's question, we do 17 need to -- 18 BRUCE II: The earlier, the better, in other 19 words. 20 MR. VIKLUND: I mean, I understood the record 21 needs to reflect that we struck an N.A.V. based on the 22 information we've got this morning, -- 23 MS. ALBICOCCO: Okay. 24 MR. VIKLUND: -- but I think if -- if there are 25 some major, you know, developments later today that would 4 1 suggest that the N.A.V. needs to be revised, I think we 2 need to re-convene. If nothing -- if management doesn't 3 believe there's anything that would call into question the 4 80, then I think we can wait until tomorrow. 5 MR. MONTGORIS: Yeah, Santa, it doesn't seem to 6 me like -- I mean, this filing just took place. This is -- 7 I mean, this is -- this is unprecedented, but at the same 8 time, the markets are the markets, and they behave the way 9 they behave. And other than, like, some -- some other kind 10 of catastrophic thing happening today, nothing is going to 11 get any better or any worse between now and the end of the 12 day. I mean, -- 13 MS. ALBICOCCO: Okay. 14 MR. MONTGORIS: -- whatever it is now, it's 15 going to be two hours from now, unless there's, you know, 16 some other, you know, cataclysmic event that takes place. 17 I mean, this thing is going to go through a 18 process, which is, you know, going to take time. And, 19 they'll appoint a judge to be the trustee, and [inaudible] 20 you know, figuring out how everything is going to happen 21 and, you know, my guess is that it's going to take a week 22 before you really know what's going to happen with this 23 stuff. 24 MS. ALBICOCCO: Okay. 25 MR. VIKLUND: But -- but, I do think it's 5 1 important that we -- that we do this every day. 2 STEWART: So, should we set a -- should we set, 3 at least for the next couple of days, so that everybody is 4 available, should we set a -- a time to all call in to, I 5 assume, the same number, and, you know, and just -- even -- 6 even if it's just a two-minute conversation, it's a two- 7 minute conversation? 8 MR. ARTINIAN: That's [inaudible] what -- 9 BRUCE II: Stewart -- 10 UNIDENTIFIED: -- time of the day we -- 11 BRUCE II: -- Stewart -- just hold on a second. 12 Stewart, are you saying we should actually meet 13 -- have a meeting with the trustees every day? 14 Or are you saying we should do the valuation 15 every day, and if there -- and if we think it's going to 16 deviate from 80 and we need, then we have a meeting with 17 the trustees? 18 MR. VIKLUND: Well, I think there should be a 19 call with the trustees every day, even if it's for two 20 minutes, to say no changes. 21 MR. ARTINIAN: That's fine with me. 22 MS. ALBICOCCO: Okay. 23 MR. ARTINIAN: I think it's prudent. I think 24 it's look good, you know, -- 25 MS. ALBICOCCO: Yes. 6 1 MR. ARTINIAN: -- I think it -- it sets up the 2 fact that we're -- we're staying on top of the situation, 3 which we are. But, I mean, I think it emphasizes it. 4 UNIDENTIFIED: And I think it even, from my 5 perspective, could be a continuation of -- of the -- of the 6 meeting we're having today. 7 MR. MONTGORIS: Yeah, and -- and Bruce, I -- I 8 don't know if this is where you're heading, but just 9 speaking for myself, I would -- I would just -- my point of 10 view would be that this is just one meeting. So, if -- 11 MR. VIKLUND: Right. 12 UNIDENTIFIED: Yes. 13 MR. MONTGORIS: -- you're talking about trustee 14 compensation, -- 15 MR. VIKLUND: Oh, yeah. 16 MR. MONTGORIS: -- it would just -- 17 MS. ALBICOCCO: Absolutely. 18 MR. MONTGORIS: -- just be one -- 19 MS. ALBICOCCO: Absolutely. 20 UNIDENTIFIED: Yeah, that's [inaudible] 21 MR. VIKLUND: Absolutely. 22 MR. MONTGORIS: I mean, if we're going to be on 23 the phone every day for the next two weeks, I don't think 24 anybody expects to get compensated for ten meetings. 25 MS. ALBICOCCO: Absolutely. 7 1 BRUCE II: Okay. 2 BRUCE SENIOR: Does that go for the attorneys on 3 the call, too? 4 [Laughter] 5 BRUCE SENIOR: Maybe they'll do some work pro 6 bono. 7 [Laughter] 8 MR. MONTGORIS: It sounds like you guys will be 9 raking in the fees for a while. 10 UNIDENTIFIED: You can just give me a call, and 11 I won't bill you. 12 BRUCE II: Yeah, okay. 13 STEWART: So, should we set a time? Should we 14 -- how about -- I mean, I'm -- is 10:00 o'clock okay? 15 BRUCE SENIOR: Ten o'clock, for Patrick? Would 16 you say 10:00? Do you say 9:00? What do you think is a 17 good time? 18 MR. LEDFORD: No, I think 9:00 would be too 19 early. I think 10:00 o'clock, so I can get a chance to -- 20 BRUCE SENIOR: Okay, fine. So, 10:00 o'clock. 21 UNIDENTIFIED: Okay. 22 MR. VIKLUND: So, we call in this number? Same 23 password, at 10:00 o'clock tomorrow morning, your time. 24 BRUCE II: Correct. 25 MR. MONTGORIS: Right. Okay. 8 1 ROSE: [inaudible] as a final thing, I mean, the 2 board has to decide that it's in the best interests of the 3 fund not to sell the security in this market, and I think 4 you've heard a lot of reasons why -- why that would be the 5 case. But, it's a conclusion that the board has to reach. 6 MR. MONTGORIS: Okay. So, do we need any 7 motions on -- on this stuff? Or is this -- or is 8 [inaudible] just taking the minutes just sufficient? 9 ROSE: Well, the motion to get any -- there 10 needs to be a motion -- 11 MR. VIKLUND: The motion is so moved. 12 MR. MONTGORIS: All right. Well then, I'll make 13 a motion that we accept management's valuation of the 14 Lehman paper at 80, and we additionally accept management's 15 recommendation that we not liquidate the position. 16 MR. ARTINIAN: Second. 17 BRUCE SENIOR: Aye. 18 MS. ALBICOCCO: Aye. 19 MR. STALZER: Aye. 20 BRUCE II: Okay. 21 MR. MONTGORIS: Aye. 22 BRUCE II: Okay. All right. 23 MR. MONTGORIS: Bruce? 24 BRUCE SENIOR: Yeah? 25 MR. MONTGORIS: Don't eat too much pasta. 9 1 BRUCE SENIOR: Yeah, right. 2 MR. MONTGORIS: Okay. 3 BRUCE SENIOR: I'm not holding onto too much of 4 anything at the moment. 5 [Laughter] 6 BRUCE II: Dad, Kate, and Sean, can you guys 7 stay on the phone when we're done? 8 MR. McKEE: Sure. 9 KATE: Okay. 10 BRUCE SENIOR: Okay. 11 MR. MONTGORIS: All right. See you guys. 12 BRUCE II: Thanks. 13 BRUCE SENIOR: [inaudible] you people -- 14 MS. ALBICOCCO: All right. 15 [Speaking simultaneously.] 16 BRUCE II: Thanks, very much. 17 MR. MONTGORIS: Okay, Bye. 18 [END OF RECORDING] 19 20 21 22 23 24 25 10 1 2 C E R T I F I C A T E 3 4 I, June Accornero, hereby certify that the 5 foregoing transcript consisting of 10 pages is a complete, 6 true and accurate transcript of the recorded conversations 7 contained in the recording labeled "OSNATO Decl Ex 27 8 Ledford9-15-08933am-1." 9 The foregoing transcript has been typed and 10 proofread by me. 11 12 ______________________________ ___________________ 13 Typist/Proofreader Date 14 15 16 17 18 19 20 21 22 23 24 25