ALD: Agent Lenders Problem Escalation Process Flows

1. ALD: Agent Lenders Problem Escalation Process Flows A guideline to agent lenders for resolving problems occurring during the daily ALD process flow October 2006

2. Content • Files and notifications flow • Guidelines and legend • File sent decision making process • Problem research flows: • Agent lender connecting direct to DTCC • Agent lender and broker-dealer both direct to DTCC • A/L using DTCC, B/D using EquiLend • A/L using DTCC, B/D using SunGard • Agent lender connecting through EquiLend • Agent lender and broker-dealer both using EquiLend • A/L using EquiLend, B/D using DTCC • A/L using EquiLend, B/D using SunGard • Agent lender connecting through SunGard • Agent lender and broker-dealer both using SunGard • A/L using SunGard, B/D using DTCC • A/L using SunGard, B/D using EquiLend • Version 5 changes

3. Agent LenderDaily file transmission process files and notifications flow Problem Notification & Update Expected File Receipt/ Delivery DTCC systemic failure notification SunGard Broker-Dealer (SunGard client) Broker-Dealer A Problem Notification Agent Lender DTCC Broker-Dealer B Problem Notification Broker-Dealer (DTCC direct connect) Broker-Dealer C Problem Notification EquiLend Broker-Dealer (EquiLend client)

4. Agent LenderDaily file transmission process Guidelines and Legend Prior to beginning the daily process in the live production environment, the agent lender should communicate with all its broker dealers any conditions that are specific to its business, e.g. ALD group email and other contact information, vendor used, daily time for generating the loan and collateral files, etc. Agent lenders must notify broker-dealers of problems or delays in delivering loan and/or collateral file(s) Agent lenders must notify both the broker-dealer and SunGard of problems or delays if the broker-dealer is using the SSF ALDOP Management Application Guidelines for agent lender problem notification: • Send e-mail to the group address specified for each applicable firm • Identify your firm and contact information • Specify general nature and severity of the problem • Specify any estimate for correcting the problem • Specify if this is the initial notification of the problem or an update related to a prior notification Note about DTCC: DTCC will send automatic notifications in the case of systemic failures only. These notifications will be sent to anyone who wishes to receive them and who provides a contact email to DTCC. Any agent lender who wishes to be part of this notification process should send a contact email to Margaret Koontz, mkoontz@dtcc.com Legend: Notify File creation Problem Agent lenders must produce notification of problems with creating the loan and/or collateral file(s) Notify Late Files Creation Agent lenders must produce notification of delays of the creating the loan and/or collateral file(s) Notify File Transmission Problem Agent lenders must produce notification of a problem transmitting the loan and/or collateral file(s) Notify Late File Transmission Agent lenders must produce notification of a delayed but successful transmission of the loan and/or collateral file(s)

5. File sent decision making process *Determine internal deadline to successfully create and transmit files to ensure broker-dealer receipt by 3:00 AM Start Fix Problem Create ALD Loan & Collateral Files Notify File creation Problem Yes Before *Deadline? Create Successful? No No Yes Before *Deadline? No Notify Late Files Creation Yes Send Files to DTCC / Vendor Fix Problem Notify File Transmission Problem Yes Before *Deadline? Transmit Successful? No No Yes Before *Deadline? Notify Late File Transmission No Yes End

6. Problem research flows • Agent lender connecting direct to DTCC • Agent lender and broker-dealer both direct to DTCC • A/L using DTCC, B/D using EquiLend • A/L using DTCC, B/D using SunGard

7. Problem research flows Broker-dealer (Direct to DTCC) Agent Lender (Direct to DTCC) A/L Files created? No Start Check DTCC website for agent lender files Yes Update B/D with status No Correct related Problems Contact Agent Lender by phone & e-mail File Available? Create A/L Files Yes Files Accepted by DTCC? No Yes A/L Files created? Yes No Check DTCC website for A/L Files Update B/D with status Notify DTCC & B/D of conflicting info Resolve retrieval problem with DTCC hotline Resolve issue with DTCC Correct related Problems Update B/D with status Send Files to DTCC Update B/D with status Files Accepted by DTCC? No Yes Update B/D with status Retrieve files from DTCC End

8. Problem Research Flows Broker-dealer (EquiLend) Agent Lender (DTCC) EquiLend A/L Files created? Start No No Files Available at DTCC? Yes Contact Agent Lender by phone & e-mail Yes Update B/D & EquiLend with status Check EquiLend browser for agent lender files Check DTCC website for A/L Files Correct related Problems Create A/L Files No Files Accepted by DTCC? Files Received from DTCC? No Yes Contact EquiLend by phone & e-mail Files Available? A/L Files created? No Yes Yes Check DTCC website for A/L Files No Yes Resolve retrieval problem with EquiLend Resolve B/D retrieval Issue Update B/D & EquiLend with status Notify DTCC, B/D & EquiLend of conflicting info Update B/D with status Correct related Problems Resolve issue with DTCC Resolve retrieval problem with DTCC Send Files to DTCC Update B/D & EquiLend with status Update B/D & EquiLend with status Files Accepted by DTCC? Update B/D with status No Yes Retrieve files from EquiLend Update B/D & EquiLend with status End

9. Problem Research Flows Broker-dealer (SunGard) Agent Lender (DTCC) SunGard A/L Files created? Start Contact Agent Lender by phone & e-mail No No Yes Files Available at DTCC? Update B/D & SunGard with status Check SunGard website for agent lender files Yes Correct related Problems Check DTCC website for A/L Files Create A/L Files Files Accepted by DTCC? Yes No Files Received from DTCC? A/L Files created? File Available? No Contact SunGard by phone & e-mail No Check DTCC website for A/L Files No Yes Yes Yes Update B/D & SunGard with status Resolve B/D retrieval Issue Resolve retrieval problem with SunGard Notify DTCC, B/D & SunGard of conflicting info Update B/D with status Correct related Problems Resolve issue with DTCC Resolve retrieval problem with DTCC Send Files to DTCC Update B/D & SunGard with status Update B/D & SunGard with status Files Accepted by DTCC? Update B/D with status No Yes Retrieve files from SunGard Update B/D & SunGard with status End

10. Problem research flows • Agent lender connecting through EquiLend • Agent lender and broker-dealer both using EquiLend • A/L using EquiLend, B/D using DTCC • A/L using EquiLend, B/D using SunGard

11. Problem Research Flows Broker-dealer (EquiLend) Agent Lender (EquiLend) EquiLend A/L Files created? No Start Yes Check EquiLend browser for agent lender files Update B/D & EquiLend with status Contact EquiLend by phone & e-mail Contact Agent Lender by e-mail Correct related Problems Notify EquiLend & B/D of conflicting vendor info File Available? No Create A/L Files A/L Files created? No Yes EquiLend & A/L resolve conflicting info Files Accepted by EquiLend? Yes Yes Update B/D & EquiLend with status No Update B/D & A/L with status Correct related Problems Resolve retrieval problem with EquiLend Send Files to EquiLend Update B/D & EquiLend with status Files Accepted by EquiLend? No Yes Update B/D & EquiLend with status Retrieve files from EquiLend End

12. Problem Research Flows Broker-dealer (DTCC) Agent Lender (EquiLend) EquiLend A/L Files created? No Start Contact Agent Lender by e-mail Check DTCC website for agent lender files Yes Update B/D & EquiLend with status Correct related Problems No Files Received from A/L? No File Available? Contact EquiLend by phone & e-mail Create A/L Files Yes Yes A/L Files created? Yes No Files Accepted by DTCC? Files Accepted by EquiLend? Resolve retrieval problem with DTCC hotline Yes No No Update B/D & EquiLend with status Yes EquiLend & B/D Resolve retrieval problem with DTCC EquiLend & A/L resolve conflicting info Notify EquiLend & B/D of conflicting info Correct related Problems Update B/D & A/L with status Update B/D & EquiLend with status Send Files to EquiLend Resolve issue with DTCC Update B/D & EquiLend with status Files Accepted by EquiLend? Update B/D & A/L with status No Update B/D & EquiLend with status Yes Retrieve files from DTCC End

13. Problem Research Flows Agent Lender (EquiLend) Broker-dealer (SunGard) EquiLend SunGard A/L Files created? Contact Agent Lender by e-mail Start No No Yes Files Received from A/L? Check SunGard website for agent lender files Update B/D, SunGard & EquiLend with status Contact EquiLend by phone & e-mail No Yes Files Available at DTCC? Files Available? Correct related Problems Files Accepted by DTCC? No Yes Yes Create A/L Files Yes Contact SunGard by phone & e-mail Check DTCC website for A/L Files EquiLend & SunGard resolve retrieval problem with DTCC No A/L Files created? No No Files Received from DTCC? Yes Update SunGard & A/L with status Update B/D, SunGard & EquiLend with status Resolve retrieval problem with SunGard Yes Files Accepted by EquiLend? Resolve issue with DTCC Resolve B/D retrieval Issue No Yes Update B/D with status Update SunGard & A/L with status Notify EquiLend, SunGard & B/D of conflicting info Resolve retrieval problem with DTCC EquiLend & A/L resolve conflicting info Update B/D with status Correct related Problems Update SunGard & A/L with status Update EquiLend & B/D with status Send Files to EquiLend Update B/D, SunGard & EquiLend with status Update B/D with status Files Accepted by EquiLend? No Retrieve files from SunGard Update B/D, SunGard & EquiLend with status Yes End

14. Problem research flows • Agent lender connecting through SunGard • Agent lender and broker-dealer both using SunGard • A/L using SunGard, B/D using DTCC • A/L using SunGard, B/D using EquiLend

15. Problem Research Flows Broker-dealer (SunGard) Agent Lender (SunGard) SunGard A/L Files created? No Start Contact Agent Lender by phone & e-mail Check SunGard website for agent lender files Yes Update B/D & SunGard with status No File Available? Files Received from A/L? Contact SunGard by phone & e-mail No Correct related Problems Notify SunGard & B/D of conflicting vendor info Create A/L Files Yes Yes Resolve B/D retrieval Issue A/L Files created? No Update B/D with status Files Accepted by SunGard? Yes Yes No Update B/D & SunGard with status SunGard & A/L resolve conflicting info Resolve retrieval problem with SunGard Correct related Problems Update B/D & A/L with status Send Files to SunGard Update B/D & SunGard with status Files Accepted by SunGard? No Update B/D & SunGard with status Yes Retrieve files from SunGard End

16. Problem Research Flows Agent Lender (SunGard) Broker-dealer (DTCC) SunGard A/L Files created? No Start Check DTCC website for agent lender files Contact Agent Lender by phone & e-mail Yes Update B/D & SunGard with status Correct related Problems No Files Received from A/L? File Available? Contact SunGard by phone & e-mail No Create A/L Files Yes Yes A/L Files created? Yes No Files Accepted by DTCC? Files Accepted by SunGard? Resolve retrieval problem with DTCC hotline Yes No No Update B/D & SunGard with status Yes SunGard & B/D Resolve retrieval problem with DTCC Notify SunGard & B/D of conflicting info SunGard & A/L resolve conflicting info Update B/D & A/L with status Correct related Problems Update B/D & SunGard w/ status Send Files to SunGard Resolve issue with DTCC Update B/D & SunGard with status Files Accepted by SunGard? Update B/D & A/L with status No Update B/D & SunGard with status Yes Retrieve files from DTCC End

17. Problem Research Flows Broker-dealer (EquiLend) Agent Lender (SunGard) SunGard EquiLend A/L Files created? Start No Contact Agent Lender by phone & e-mail Yes No Update B/D, SunGard & EquiLend with status Files Received from A/L? Contact SunGard by e-mail Check EquiLend browser for agent lender files No Yes Files Available at DTCC? Correct related Problems Files Accepted by DTCC? Yes Yes Files Available? No Create A/L Files Check DTCC website for A/L Files EquiLend & SunGard resolve retrieval problem with DTCC A/L Files created? No Yes No Yes No Contact EquiLend by phone & e-mail Files Received from DTCC? Update B/D, SunGard & EquiLend with status Update B/D, EquiLend & A/L with status Files Accepted by SunGard? Yes Resolve issue with DTCC Resolve retrieval problem with EquiLend Resolve B/D retrieval Issue No Yes Update B/D with status Update B/D, EquiLend & A/L with status Notify EquiLend, SunGard & B/D of conflicting info Resolve retrieval problem with DTCC SunGard & A/L resolve conflicting info Correct related Problems Update B/D with status Update B/D, EquiLend & A/L with status Send Files to SunGard Update B/D, SunGard & EquiLend with status Update SunGard & B/D with status Files Accepted by SunGard? No Retrieve files from EquiLend Update B/D, SunGard & EquiLend with status Yes End

18. Problem Research Flows Version 5 changes • Changed method of EquiLend contacting agent lenders and SunGard from “phone & e-mail” to “e-mail” only on all flows as per comments from EquiLend.