diff --git a/check.t b/check.t
index b2cc7ff..2202e39 100644
--- a/check.t
+++ b/check.t
@@ -1,4 +1,4 @@
-# $MirOS: src/bin/mksh/check.t,v 1.129 2007/07/23 14:28:51 tg Exp $
+# $MirOS: src/bin/mksh/check.t,v 1.130 2007/07/24 11:22:03 tg Exp $
 # $OpenBSD: bksl-nl.t,v 1.2 2001/01/28 23:04:56 niklas Exp $
 # $OpenBSD: history.t,v 1.5 2001/01/28 23:04:56 niklas Exp $
 # $OpenBSD: read.t,v 1.3 2003/03/10 03:48:16 david Exp $
@@ -7,7 +7,7 @@
 # http://www.research.att.com/~gsf/public/ifs.sh
 
 expected-stdout:
-	@(#)MIRBSD KSH R30 2007/07/23
+	@(#)MIRBSD KSH R30 2007/07/24
 description:
 	Check version of shell.
 category: pdksh
@@ -3736,6 +3736,23 @@ expected-stderr:
 	+ /usr/bin/env false
 expected-exit: e != 0
 ---
+name: errexit-3
+description:
+	pdksh regression which AT&T ksh does right
+	TFM says: [set] -e | errexit
+		Exit (after executing the ERR trap) ...
+stdin:
+	trap 'echo EXIT' EXIT
+	trap 'echo ERR' ERR
+	set -e
+	cd /XXXXX 2>/dev/null
+	echo DONE
+	exit 0
+expected-stdout:
+	ERR
+	EXIT
+expected-exit: e != 0
+---
 name: test-stlt-1
 description:
 	Check that test also can handle string1 < string2 etc.
diff --git a/exec.c b/exec.c
index 75dceb7..14a2d0a 100644
--- a/exec.c
+++ b/exec.c
@@ -2,7 +2,7 @@
 
 #include "sh.h"
 
-__RCSID("$MirOS: src/bin/mksh/exec.c,v 1.36 2007/07/22 14:01:48 tg Exp $");
+__RCSID("$MirOS: src/bin/mksh/exec.c,v 1.37 2007/07/24 11:22:04 tg Exp $");
 
 static int comexec(struct op *, struct tbl *volatile, const char **,
     int volatile);
@@ -362,9 +362,9 @@ execute(struct op *volatile t,
 	if ((flags&XEXEC))
 		unwind(LEXIT);	/* exit child */
 	if (rv != 0 && !(flags & XERROK)) {
+		trapsig(SIGERR_);
 		if (Flag(FERREXIT))
 			unwind(LERROR);
-		trapsig(SIGERR_);
 	}
 	return rv;
 }
diff --git a/sh.h b/sh.h
index 0362b84..53d1797 100644
--- a/sh.h
+++ b/sh.h
@@ -8,8 +8,8 @@
 /*	$OpenBSD: c_test.h,v 1.4 2004/12/20 11:34:26 otto Exp $	*/
 /*	$OpenBSD: tty.h,v 1.5 2004/12/20 11:34:26 otto Exp $	*/
 
-#define MKSH_SH_H_ID "$MirOS: src/bin/mksh/sh.h,v 1.162 2007/07/23 14:28:52 tg Exp $"
-#define MKSH_VERSION "R30 2007/07/23"
+#define MKSH_SH_H_ID "$MirOS: src/bin/mksh/sh.h,v 1.163 2007/07/24 11:22:04 tg Exp $"
+#define MKSH_VERSION "R30 2007/07/24"
 
 #if HAVE_SYS_PARAM_H
 #include <sys/param.h>