LEHMAN BROTHERS INCOME FUNDS
                               INSTITUTIONAL CLASS
                            ADMINISTRATION AGREEMENT

                                   SCHEDULE A



     The  Institutional  Class of the  Series of Lehman  Brothers  Income  Funds
currently subject to this Agreement are as follows:



Lehman Brothers Strategic Income Fund



Date: June 1, 2007






                          LEHMAN BROTHERS INCOME FUNDS
                               INSTITUTIONAL CLASS
                            ADMINISTRATION AGREEMENT

                                   SCHEDULE B


     Compensation  pursuant to Paragraph 3 of the Lehman  Brothers  Income Funds
Institutional Class Administration Agreement shall be:

     (1)  For the  services  provided  to the  Trust or to each  Series  without
          regard to class,  0.06% per annum of the  average  daily net assets of
          the Institutional Class of each Series;

     (2)  For the services provided to the  Institutional  Class of a Series and
          its  shareholders,  0.09% per annum of the average daily net assets of
          the Institutional Class of said Series; plus in each case

     (3)  certain  out-of-pocket  expenses for technology  used for  shareholder
          servicing and shareholder communication, subject to the prior approval
          of an annual  budget by the  Trust's  Board of  Trustees,  including a
          majority of those Trustees who are not interested persons of the Trust
          or of Neuberger  Berman  Management  Inc., and periodic reports to the
          Board of Trustees on actual expenses.



Date: June 1, 2007