Answer to this is you cant bond a bond. The linux kernel will not support.
Having 2 LACP bonds with 2 IPs didnt work with our netbackup server version either.....couldnt handle multiple IPs.....i believe this may be addressed in newer version (7>)
So for now stuck to normal mode 1 bond.
But have seen article that in RHEL 6 and bonding 3.5.0 or later can have bond with multiple nics accross multiple switches with different aggregate IDs. RHEL 6 not in roadmap for a while so cant play as dont have a system that could test the trunking.