Document:

EX-10.5

 Exhibit 10.5 
  

 
  

ASSET REPRESENTATIONS REVIEW AGREEMENT 

VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2018-2 

as Issuer 
 and 

VW CREDIT, INC., 
 as
Servicer 
 and 
 CLAYTON
FIXED INCOME SERVICES LLC, 
 as Asset Representations Reviewer 

 
  

Dated as of November 21, 2018 
  

 
  

 TABLE OF CONTENTS 
  

							
	 ARTICLE I. USAGE AND DEFINITIONS
	  	 	1	 
			
	 Section 1.01
	 	 Usage and Definitions
	  	 	1	 
			
	 Section 1.02
	 	 Definitions
	  	 	1	 
		
	 ARTICLE II. ENGAGEMENT; ACCEPTANCE
	  	 	2	 
			
	 Section 2.01
	 	 Engagement; Acceptance
	  	 	2	 
			
	 Section 2.02
	 	 Confirmation of Status
	  	 	3	 
		
	 ARTICLE III. ASSET REPRESENTATIONS REVIEW PROCESS
	  	 	3	 
			
	 Section 3.01
	 	 Review Notices and Identification of Subject Receivables
	  	 	3	 
			
	 Section 3.02
	 	 Review Materials
	  	 	3	 
			
	 Section 3.03
	 	 Performance of Reviews
	  	 	4	 
			
	 Section 3.04
	 	 Review Report
	  	 	5	 
			
	 Section 3.05
	 	 Review Representatives
	  	 	5	 
			
	 Section 3.06
	 	 Dispute Resolution
	  	 	6	 
			
	 Section 3.07
	 	 Limitations on Review Obligations
	  	 	6	 
		
	 ARTICLE IV. ASSET REPRESENTATIONS REVIEWER
	  	 	7	 
			
	 Section 4.01
	 	 Representations, Warranties and Covenants of the Asset Representations Reviewer
	  	 	7	 
			
	 Section 4.02
	 	 Fees and Expenses
	  	 	8	 
		
	 ARTICLE V. OTHER MATTERS PERTAINING TO THE ASSET REPRESENTATIONS REVIEWER
	  	 	9	 
			
	 Section 5.01
	 	 Limitation on Liability
	  	 	9	 
			
	 Section 5.02
	 	 Indemnification by Servicer
	  	 	9	 
			
	 Section 5.03
	 	 Indemnification by Asset Representations Reviewer
	  	 	9	 
			
	 Section 5.04
	 	 Inspections of Asset Representations Reviewer
	  	 	10	 
			
	 Section 5.05
	 	 Delegation of Obligations
	  	 	10	 
		
	 ARTICLE VI. TREATMENT OF CONFIDENTIAL INFORMATION
	  	 	10	 
			
	 Section 6.01
	 	 Confidential Information
	  	 	10	 
			
	 Section 6.02
	 	 Personally Identifiable Information
	  	 	12	 
		
	 ARTICLE VII. REMOVAL, RESIGNATION
	  	 	14	 
			
	 Section 7.01
	 	 Eligibility of the Asset Representations Reviewer
	  	 	14	 
			
	 Section 7.02
	 	 Resignation and Removal of Asset Representations Reviewer
	  	 	14	 
			
	 Section 7.03
	 	 Successor Asset Representations Reviewer
	  	 	15	 
			
	 Section 7.04
	 	 Merger, Consolidation or Succession
	  	 	15	 

  
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	 ARTICLE VIII. OTHER AGREEMENTS
	  	 	16	 
			
	 Section 8.01
	 	 Independence of the Asset Representations Reviewer
	  	 	16	 
			
	 Section 8.02
	 	 No Petition
	  	 	16	 
			
	 Section 8.03
	 	 Limitation of Liability of Owner Trustee
	  	 	16	 
			
	 Section 8.04
	 	 Termination of Agreement
	  	 	17	 
		
	 ARTICLE IX. MISCELLANEOUS PROVISIONS
	  	 	17	 
			
	 Section 9.01
	 	 Amendments
	  	 	17	 
			
	 Section 9.02
	 	 Assignment; Benefit of Agreement; Third Party Beneficiaries
	  	 	18	 
			
	 Section 9.03
	 	 Notices
	  	 	18	 
			
	 Section 9.04
	 	 Governing Law
	  	 	18	 
			
	 Section 9.05
	 	 Submission to Jurisdiction; Waiver of Jury Trial
	  	 	19	 
			
	 Section 9.06
	 	 No Waiver; Remedies
	  	 	19	 
			
	 Section 9.07
	 	 Severability
	  	 	19	 
			
	 Section 9.08
	 	 Headings
	  	 	19	 
			
	 Section 9.09
	 	 Counterparts
	  	 	20	 

 Schedule A – Representations and Warranties, Review Materials and Tests 

 

  
 ii 

 This ASSET REPRESENTATIONS REVIEW AGREEMENT (this “Agreement”), entered
into as of November 21, 2018, by and among VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2018-2, a Delaware statutory trust, as issuer (the “Issuer”), VW CREDIT, INC., a Delaware corporation
(“VCI”), as servicer (in such capacity, the “Servicer”) and Clayton Fixed Income Services LLC, a Delaware limited liability company, as asset representations reviewer (the “Asset Representations
Reviewer”). 
 WHEREAS, in connection with a securitization transaction sponsored by VCI, VCI sold a pool of Receivables consisting
of retail installment sale contracts to Volkswagen Auto Lease/Loan Underwritten Funding, LLC (the “Depositor”), who sold them to the Issuer; 

WHEREAS, the Issuer will engage the Asset Representations Reviewer to perform reviews of certain Receivables for compliance with certain
representations and warranties made with respect thereto; and 
 WHEREAS, the Asset Representations Reviewer desires to perform such reviews
of Receivables in accordance with the terms of this Agreement. 
 NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows: 

ARTICLE I. 
 USAGE AND
DEFINITIONS 
 Section 1.01 Usage and Definitions. 

Except as otherwise defined herein or as the context may otherwise require, capitalized terms used but not otherwise defined herein are defined
in Appendix A to the Sale and Servicing Agreement, dated as of the date hereof (as from time to time amended, supplemented or otherwise modified and in effect, the “Sale and Servicing Agreement”) among the Issuer, the Servicer, the
Depositor, as seller, and the Indenture Trustee, which also contains rules as to usage that are applicable herein. 
 Section 1.02
Definitions. 
 Whenever used in this Agreement, the following words and phrases shall have the following meanings: 

“Annual Fee” has the meaning stated in Section 4.02(a). 

“Asset Review” means the completion by the Asset Representations Reviewer of the testing procedures for each Test and for
each Subject Receivable as further described in Section 3.03. 

 “Confidential Information” has the meaning stated in Section 6.01(b).

 “Eligible Representations” shall mean those representations identified on Schedule A attached hereto. 

“Information Recipients” has the meaning stated in Section 6.01(a). 

“Indenture” means the Indenture, dated as of November 21, 2018, between the Issuer and the Indenture Trustee, as the
same may be amended, supplemented or modified from time to time. 
 “Indenture Trustee” means Deutsche Bank Trust Company
Americas, as indenture trustee under the Indenture, and any successor thereto. 
 “Issuer PII” has the meaning stated in
Section 6.02(a). 
 “PII” has the meaning stated in Section 6.02(a). 

“Review Fee” has the meaning stated in Section 4.02(b). 

“Review Materials” means the documents, data, and other information required for each Test listed under “Documents”
in Schedule A. 
 “Review Notice” means a notice delivered to the Asset Representations Reviewer by the Indenture Trustee
pursuant to Section 7.5(b) of the Indenture. 
 “Review Report” means, for an Asset Review, the report of the Asset
Representations Reviewer prepared according to Section 3.04. 
 “Test” has the meaning stated in Section 3.03(a).

 “Test Complete” has the meaning stated in Section 3.03(c). 

“Test Fail” has the meaning stated in Section 3.03(a). 

“Test Incomplete” has the meaning stated in Section 3.03(a). 

“Test Pass” has the meaning stated in Section 3.03(a). 

ARTICLE II. 

ENGAGEMENT; ACCEPTANCE 

Section 2.01 Engagement; Acceptance. 

The Issuer hereby engages Clayton Fixed Income Services LLC to act as the Asset Representations Reviewer for the Issuer. Clayton Fixed Income
Services LLC accepts the engagement and agrees to perform the obligations of the Asset Representations Reviewer on the terms stated in this Agreement. 

  
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 Section 2.02 Confirmation of Status.  

The parties confirm that the Asset Representations Reviewer is not responsible for (a) reviewing the Receivables for compliance with the
representations and warranties under the Transaction Documents, except as described in this Agreement, or (b) determining whether noncompliance with the representations or warranties constitutes a breach of the Transaction Documents. 

ARTICLE III. 
 ASSET
REPRESENTATIONS REVIEW PROCESS 
 Section 3.01 Review Notices and Identification of Subject Receivables. 

(a) On receipt of a Review Notice from the Indenture Trustee according to Section 7.5(b) of the Indenture, the Asset Representations
Reviewer will start an Asset Review. The Asset Representations Reviewer will not be obligated to start an Asset Review until a Review Notice is received. 

(b) Within 10 Business Days after receipt of a Review Notice, the Servicer will deliver to the Asset Representations Reviewer, with a copy to
the Indenture Trustee, a list of the Subject Receivables. The Asset Representations Reviewer will not be obligated to start an Asset Review until a Review Notice and the related list of Subject Receivables is received. The Asset Representations
Reviewer is not obligated to verify (i) whether the Indenture Trustee properly determined that a Review Notice was required or (ii) the accuracy or completeness of the list of Subject Receivables provided by the Servicer. 

Section 3.02 Review Materials. 

(a) Access to Review Materials. The Servicer will render reasonable assistance to the Asset Representations Reviewer to facilitate the
Asset Review. The Servicer will give the Asset Representations Reviewer access to the Review Materials for all of the Subject Receivables within sixty (60) calendar days after receipt of the Review Notice in one or more of the following ways in
the Servicer’s reasonable discretion: (i) by electronic posting to a password-protected website to which the Asset Representations Reviewer has access, (ii) by providing originals or photocopies at an office of the Servicer during
normal business hours upon reasonable prior written notice in connection with the Asset Review or (iii) in another manner agreed by the Servicer and the Asset Representations Reviewer. The Servicer may redact or remove Personally Identifiable
Information from the Review Materials so long as all information in the Review Materials necessary for the Asset Representations Reviewer to complete the Asset Review remains intact and unchanged. The Asset Representations Reviewer shall be entitled
to rely in good faith, without independent investigation or verification, that the Review Materials are accurate and complete in all material respects, and not misleading in any material respect. 

  
 3 

 (b) Missing or Insufficient Review Materials. The Asset Representations Reviewer will
review the Review Materials to determine if any Review Materials are missing or insufficient for the Asset Representations Reviewer to perform any Test. If the Asset Representations Reviewer reasonably determines any missing or insufficient Review
Materials, the Asset Representations Reviewer will notify the Servicer promptly, and in any event no less than twenty (20) calendar days before completing the Asset Review. The Servicer will use reasonable efforts to provide the Asset
Representations Reviewer access to the missing Review Materials or other documents or information to correct the insufficiency within fifteen (15) calendar days. If the missing Review Materials or other documents have not been provided by the
Servicer within sixty (60) calendar days, the related Review Report will report a Test Incomplete for each Test that requires use of the missing or insufficient Review Materials. 

Section 3.03 Performance of Reviews. 

(a) Test Procedures. For an Asset Review, the Asset Representations Reviewer will perform, for each Subject Receivable, the procedures
listed under “Procedures to be Performed” in Schedule A for each representation and warranty being tested (each, a “Test”) using the Review Materials listed in Schedule A for each such Test. For each Test and Subject
Receivable, the Asset Representations Reviewer will determine in its reasonable judgment if the Test has been satisfied (a “Test Pass”), if the Test has not been satisfied (a “Test Fail”) or if the Test could not be
conducted as a result of missing or incomplete Review Materials (a “Test Incomplete”). The Asset Representations Reviewer will use such determination for all Subject Receivables that are subject to the same Test. 

(b) Review Period. The Asset Representations Reviewer will complete the Asset Review within sixty (60) calendar days of receiving
access to the Review Materials. However, if additional Review Materials are provided to the Asset Representations Reviewer as described in Section 3.02(b), the Asset Review period will be extended for an additional thirty (30) calendar
days. 
 (c) Completion of Review for Certain Subject Receivables. Following the delivery of the list of the Subject Receivables and
before the delivery of the Review Report by the Asset Representations Reviewer, the Servicer may notify the Asset Representations Reviewer if a Subject Receivable is paid in full by the Obligor or purchased from the Issuer in accordance with the
terms of the Transaction Documents. On receipt of such notice, the Asset Representations Reviewer will immediately terminate all Tests of the related Subject Receivable, and the Asset Review of such Subject Receivables will be considered complete (a
“Test Complete”). In this case, the related Review Report will indicate a Test Complete for such Subject Receivable and the related reason. 

  
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 (d) Previously Reviewed Receivables; Duplicative Tests. If any Subject Receivable was
included in a prior Asset Review, the Asset Representations Reviewer will not conduct additional Tests on such Subject Receivable, but will include the previously reported Test results in the Review Report for the current Asset Review. If the same
Test is required for more than one representation and warranty, the Asset Representations Reviewer will only perform the Test once for each Subject Receivable, but will report the results of the Test for each applicable representation and warranty
on the Review Report. 
 (e) Termination of Review. If an Asset Review is in process and the Notes will be paid in full on the next
Payment Date, the Servicer will notify the Asset Representations Reviewer and the Indenture Trustee no less than ten (10) calendar days before that Payment Date. On receipt of such notice, the Asset Representations Reviewer will terminate the
Asset Review immediately and will not be obligated to deliver a Review Report. 
 (f) Review Systems; Personnel. The Asset
Representations Reviewer will maintain business process management and/or other systems necessary to ensure that it can perform each Test and, on execution of this Agreement, will load each Test into these systems. The Asset Representations Reviewer
will ensure that these systems allow for each Subject Receivable and the related Review Materials to be individually tracked and stored as contemplated by this Agreement. The Asset Representations Reviewer will maintain adequate staff that is
properly trained to conduct Asset Reviews as required by this Agreement. 
 Section 3.04 Review Report. 

Within 10 calendar days after the end of the applicable Asset Review period under Section 3.03(b), the Asset Representations Reviewer will
deliver to the Issuer, the Servicer, and the Indenture Trustee a Review Report indicating for each Subject Receivable whether there was a Test Pass, Test Incomplete, Test Fail or Test Complete for each related Test. For each Test Fail or Test
Complete, the Review Report will indicate the related reason. The Review Report will contain the findings and conclusions of the Asset Representations Reviewer with respect to the Asset Review, and will be included in the Issuer’s Form 10-D report for the Collection Period in which the Review Report is received. The Asset Representations Reviewer will ensure that the Review Report does not contain any PII. On reasonable request of the Servicer,
the Asset Representations Reviewer will provide additional details on the Test results. 
 Section 3.05 Review Representatives.

 (a) Servicer Representative. The Servicer will designate one or more representatives who will be available to assist the Asset
Representations Reviewer in performing the Asset Review, including responding to requests and answering questions from the Asset Representations Reviewer about access to Review Materials on the Servicer’s originations, receivables or other
systems, obtaining missing or insufficient Review Materials and/or providing clarification of any Review Materials or Tests. 
 (b) Asset
Representations Review Representative. The Asset Representations Reviewer will designate one or more representatives who will be available to the Issuer and the Servicer during the performance of an Asset Review. 

  
 5 

 (c) Questions About Review. The Asset Representations Reviewer will make appropriate
personnel available to respond in writing to written questions or requests for clarification of any Review Report from the Servicer until the earlier of (i) one (1) year after the delivery of the subject Review Report or (ii) the payment
in full of the Notes. The Asset Representations Reviewer will not be obligated to respond to questions or requests for clarification from Noteholders or any other Person and will direct such Persons to submit written questions or requests to the
Servicer. 
 Section 3.06 Dispute Resolution. 

If a Subject Receivable that was the subject of an Asset Review becomes the subject of a dispute resolution proceeding under Section 9.24
of the Sale and Servicing Agreement, the Asset Representations Reviewer will participate in the dispute resolution proceeding on request of a party to the proceeding. The reasonable
out-of-pocket expenses of the Asset Representations Reviewer for its participation in any dispute resolution proceeding will be considered expenses of the Requesting
Party for the dispute resolution and will be paid by a party to the dispute resolution as determined by the mediator or arbitrator for the dispute resolution according to Section 9.24 of the Sale and Servicing Agreement. If not paid by a party
to the dispute resolution, the expenses will be reimbursed according to Section 4.02(c) of this Agreement. 
 Section 3.07
Limitations on Review Obligations. 
 (a) Review Process Limitations. The Asset Representations Reviewer will have no
obligation (i) to determine whether a Delinquency Trigger has occurred or whether the required percentage of Noteholders has voted to direct an Asset Review under the Indenture, (ii) to determine which Receivables are subject to an Asset
Review, (iii) to obtain or confirm the validity of the Review Materials, (iv) to obtain missing or insufficient Review Materials except as specifically described herein, (v) to take any action or cause any other party to take any
action under any of the Transaction Documents to enforce any remedies for breaches of representations or warranties about the Subject Receivables, (vi) to determine the reason for the delinquency of any Subject Receivable, the creditworthiness
of any Obligor, the overall quality of any Subject Receivable, or the compliance by the Servicer with its covenants with respect to the servicing of any Subject Receivable, or (vii) to establish cause, materiality, or recourse for any failed
Test. 
 (b) Maintenance of Review Materials. The Asset Representations Reviewer will maintain copies of any Review Materials, Review
Reports and other documents relating to an Asset Review, including internal correspondence and work papers, until the earlier of (i) two (2) years after the delivery of any Review Report or (ii) the repayment of the Notes in full. 

  
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 ARTICLE IV. 

ASSET REPRESENTATIONS REVIEWER 

Section 4.01 Representations, Warranties and Covenants of the Asset Representations Reviewer. 

The Asset Representations Reviewer hereby makes the following representations, warranties and covenants as of the Closing Date: 

(a) Organization and Qualification. The Asset Representations Reviewer is duly organized and validly existing as a limited liability
company in good standing under the laws of State of Delaware. The Asset Representations Reviewer is qualified as a foreign limited liability company in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which
the ownership or lease of its properties or the conduct of its activities requires the qualification, license or approval, unless the failure to obtain the qualifications, licenses or approvals would not reasonably be expected to have a material
adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under this Agreement. 
 (b) Power,
Authority and Enforceability. The Asset Representations Reviewer has the power and authority to execute, deliver and perform its obligations under this Agreement. The Asset Representations Reviewer has authorized the execution, delivery and
performance of this Agreement. This Agreement is the legal, valid and binding obligation of the Asset Representations Reviewer enforceable against the Asset Representations Reviewer, except as may be limited by insolvency, bankruptcy, reorganization
or other laws relating to the enforcement of creditors’ rights or by general equitable principles. 
 (c) No Conflicts and No
Violation. The completion of the transactions contemplated by this Agreement and the performance of the Asset Representations Reviewer’s obligations under this Agreement will not (i) conflict with, or be a breach or default under, any
indenture, loan agreement, guarantee or similar document under which the Asset Representations Reviewer is a debtor or guarantor, (ii) result in the creation or imposition of a Lien on the properties or assets of the Asset Representations
Reviewer under the terms of any indenture, loan agreement, guarantee or similar document, (iii) violate the organizational documents of the Asset Representations Reviewer or (iv) violate a law or, to the Asset Representations
Reviewer’s knowledge, an order, rule or regulation of a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Asset Representations Reviewer or its property that
applies to the Asset Representations Reviewer, which, in each case, would reasonably be expected to have a material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under this Agreement. 

(d) No Proceedings. To the Asset Representations Reviewer’s knowledge, there are no proceedings or investigations pending or
threatened in writing before a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Asset Representations Reviewer or its properties (i) asserting the invalidity of
this Agreement, (ii) seeking to prevent the completion of the transactions contemplated by this Agreement or (iii) seeking any determination or ruling that would reasonably be expected to have a material adverse effect on the Asset
Representations Reviewer’s ability to perform its obligations under, or the validity or enforceability of, this Agreement. 

  
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 (e) Eligibility. The Asset Representations Reviewer meets the eligibility
requirements in Section 7.01, and will notify the Issuer and the Servicer promptly if it no longer meets, or reasonably expects that it will no longer meet, the eligibility requirements in Section 5.01. 

Section 4.02 Fees and Expenses. 

(a) Annual Fee. The Servicer will pay the Asset Representations Reviewer, as compensation for its activities under this Agreement, an
annual fee of $5,000.00 (the “Annual Fee”). The Annual Fee will be payable by the Servicer on the Closing Date and on each anniversary thereof until this Agreement is terminated; provided, that in the year in which all Notes are paid in
full, the Annual Fee shall be reduced pro rata by an amount equal to the days of the year in which the Notes are no longer outstanding. 

(b) Review Fee. Following the completion of an Asset Review and the delivery of the related Review Report pursuant to Section 3.04,
or the termination of an Asset Review according to Section 3.03(e), and the delivery to the Indenture Trustee and the Servicer of a detailed invoice, the Asset Representations Reviewer will be entitled to a fee of $200.00 for each Subject
Receivable for which the Asset Review was started (the “Review Fee”). However, no Review Fee will be charged for any Subject Receivable which was included in a prior Asset Review or for which no Tests were completed prior to the
Asset Representations Reviewer being notified of a termination of the Asset Review according to Section 3.03(e) or due to missing or insufficient Review Materials under Section 3.02(b). 

(c) Dispute Resolution Expenses. If the Asset Representations Reviewer participates in a dispute resolution proceeding under
Section 3.06 of this Agreement and its reasonable out-of-pocket expenses for participating in the proceeding are not paid by a party to the dispute resolution
within ninety (90) days after the end of the proceeding, the Servicer will reimburse the Asset Representations Reviewer for such expenses upon receipt of a detailed invoice. 

(d) Reimbursement of Expenses. The Servicer shall reimburse the Asset Representations Reviewer for all reasonable out-of-pocket expenses incurred or made by it, in addition to the compensation for its services. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Asset Representations Reviewer’s agents, counsel, accountants and experts. 
 (e) Payment of
Invoices. The Asset Representations Reviewer will issue invoices to the Servicer at the notices address set forth in Schedule II to the Sale and Servicing Agreement and Servicer shall pay all invoices submitted by the Asset Representations
Reviewer within thirty (30) days following the receipt by the Servicer. Any amounts payable by the Servicer to the Asset Representations Reviewer pursuant to this Agreement that have been outstanding for at least thirty (30) days shall be
paid on the Payment Date related to the Collection Period in which such 30th day occurs, in accordance with Section 4.4 of the Sale and Servicing Agreement or Section 5.4(b) of the
Indenture, as applicable. 

  
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 ARTICLE V. 

OTHER MATTERS PERTAINING TO THE ASSET REPRESENTATIONS REVIEWER 

Section 5.01 Limitation on Liability. 

The Asset Representations Reviewer will not be liable to any Person for any action taken, or not taken, in good faith under this Agreement or
for errors in judgment. However, the Asset Representations Reviewer will be liable for its willful misconduct, bad faith, breach of this Agreement or negligence in performing its obligations under this Agreement. In no event will the Asset
Representations Reviewer be liable for special, indirect or consequential losses or damages (including lost profit), even if the Asset Representations Reviewer has been advised of the likelihood of the loss or damage and regardless of the form of
action. 
 Section 5.02 Indemnification by Servicer. 

The Servicer shall indemnify the Asset Representations Reviewer against any and all loss, liability or expense (including reasonable
attorneys’ fees) incurred by it in connection with the administration of this Agreement and the performance of its duties hereunder. The Asset Representations Reviewer shall notify the Servicer promptly of any claim for which it may seek
indemnity. Failure by the Asset Representations Reviewer to so notify the Servicer shall not relieve the Servicer of its obligations hereunder. The Servicer shall defend any such claim, and the Asset Representations Reviewer may have separate
counsel and the Servicer shall pay the fees and expenses of such counsel. The Servicer shall not reimburse any expense or indemnify against any loss, liability or expense incurred by the Asset Representations Reviewer arising out of or resulting
from the Asset Representations Reviewer’s own bad faith, negligence, willful misfeasance or breach of this Agreement. The Servicer’s obligations under this Section 5.02 will survive the termination of this Agreement, the termination
of the Issuer and the resignation or removal of the Asset Representations Reviewer. 
 Section 5.03 Indemnification by Asset
Representations Reviewer. 
 The Asset Representations Reviewer will indemnify each of the Issuer, the Seller, the Servicer, the
Administrator, the Owner Trustee, the Issuer Delaware Trustee and the Indenture Trustee and their respective directors, officers, employees and agents for all fees, expenses, losses, damages and liabilities resulting from (a) the willful
misconduct, bad faith or negligence of the Asset Representations Reviewer in performing its obligations under this Agreement and (b) the Asset Representations Reviewer’s breach of any of its representations or warranties in this Agreement.
The Asset Representations Reviewer’s obligations under this Section 5.03 will survive the termination of this Agreement, the termination of the Issuer and the resignation or removal of the Asset Representations Reviewer. 

  
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 Section 5.04 Inspections of Asset Representations Reviewer. 

The Asset Representations Reviewer agrees that, with reasonable advance notice not more than once during any year, it will permit authorized
representatives of the Issuer or the Servicer, during the Asset Representations Reviewer’s normal business hours, to examine and review the books of account, records, reports and other documents and materials of the Asset Representations
Reviewer relating to (a) the performance of the Asset Representations Reviewer’s obligations under this Agreement, (b) payments of fees and expenses of the Asset Representations Reviewer for its performance and (c) a claim made
by the Asset Representations Reviewer under this Agreement. In addition, the Asset Representations Reviewer will permit the Issuer’s or the Servicer’s representatives to make copies and extracts of any of those documents and to discuss
them with the Asset Representations Reviewer’s officers and employees. Each of the Issuer and the Servicer will, and will cause its authorized representatives to, hold in confidence the information except if disclosure may be required by law or
if the Issuer or the Servicer reasonably determines that it is required to make the disclosure under this Agreement or the other Transaction Documents. The Asset Representations Reviewer will maintain all relevant books, records, reports and other
documents and materials for a period of at least two years after the termination of its obligations under this Agreement. 

Section 5.05 Delegation of Obligations. 

The Asset Representations Reviewer may not delegate or subcontract its obligations under this Agreement to any Person without the consent of
the Issuer and the Servicer. 
 ARTICLE VI. 

TREATMENT OF CONFIDENTIAL INFORMATION 

Section 6.01 Confidential Information. 

(a) Treatment. The Asset Representations Reviewer agrees to hold and treat Confidential Information given to it under this Agreement in
confidence and under the terms and conditions of this Article VI, and will implement and maintain safeguards to further assure the confidentiality of the Confidential Information. The Confidential Information will not, without the prior consent of
the Issuer and the Servicer, be disclosed or used by the Asset Representations Reviewer, or its officers, directors, employees, agents, representatives or affiliates, including legal counsel (collectively, the “Information
Recipients”) other than for the purposes of performing Reviews of Subject Receivables or performing its obligations under this Agreement. The Asset Representations Reviewer agrees that it will not, and will cause its Affiliates to not
(i) purchase or sell securities issued by VCI or its Affiliates or special purpose entities on the basis of Confidential Information or (ii) use the Confidential Information for the preparation of research reports, newsletters or other
publications or similar communications. 

  
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 (b) Definition. “Confidential Information” means oral, written and
electronic materials (irrespective of its source or form of communication) furnished before, on or after the date of this Agreement to the Asset Representations Reviewer for the purposes contemplated by this Agreement, including: 

(i) lists of Subject Receivables and any related Review Materials; 

(ii) origination and servicing guidelines, policies and procedures, and form contracts; and 

(iii) notes, analyses, compilations, studies or other documents or records prepared by the Servicer, which contain information
supplied by or on behalf of the Servicer or its representatives. 
 However, Confidential Information will not include information that
(A) is or becomes generally available to the public other than as a result of disclosure by the Information Recipients, (B) was available to, or becomes available to, the Information Recipients on a
non-confidential basis from a Person or entity other than the Issuer or the Servicer before its disclosure to the Information Recipients who, to the knowledge of the Information Recipient is not bound by a
confidentiality agreement with the Issuer or the Servicer and is not prohibited from transmitting the information to the Information Recipients, (C) is independently developed by the Information Recipients without the use of the Confidential
Information, as shown by the Information Recipients’ files and records or other evidence in the Information Recipients’ possession or (D) the Issuer or the Servicer provides permission to the applicable Information Recipients to
release. 
 (c) Protection. The Asset Representations Reviewer will use best efforts to protect the secrecy of and avoid disclosure
and unauthorized use of Confidential Information, including those measures that it takes to protect its own confidential information and not less than a reasonable standard of care. The Asset Representations Reviewer acknowledges that Personally
Identifiable Information is also subject to the additional requirements in Section 6.02. 
 (d) Disclosure. If the Asset
Representations Reviewer is required by applicable law, regulation, rule or order issued by an administrative, governmental, regulatory or judicial authority to disclose part of the Confidential Information, it may disclose the Confidential
Information. However, before a required disclosure, the Asset Representations Reviewer, if permitted by law, regulation, rule or order, will use its reasonable efforts to provide the Issuer and the Servicer with notice of the requirement and will
cooperate, at the Servicer’s expense, in the Issuer’s and the Servicer’s pursuit of a proper protective order or other relief for the disclosure of the Confidential Information. If the Issuer or the Servicer is unable to obtain a
protective order or other proper remedy by the date that the information is required to be disclosed, the Asset Representations Reviewer will disclose only that part of the Confidential Information that it is advised by its legal counsel it is
legally required to disclose. 
 (e) Responsibility for Information Recipients. The Asset Representations Reviewer will be responsible
for a breach of this Section 6.01 by its Information Recipients. 

  
 11 

 (f) Violation. The Asset Representations Reviewer agrees that a violation of this
Agreement may cause irreparable injury to the Issuer and the Servicer and the Issuer and the Servicer may seek injunctive relief in addition to legal remedies. If an action is initiated by the Issuer or the Servicer to enforce this
Section 6.01, the prevailing party will be reimbursed for its fees and expenses, including reasonable attorney’s fees, incurred for the enforcement. 

Section 6.02 Personally Identifiable Information. 

(a) Definitions. “Personally Identifiable Information” or “PII” means information in any format about
an identifiable individual, including, name, address, phone number, e-mail address, account number(s), identification number(s), vehicle identification number or “VIN,” any other actual or assigned
attribute associated with or identifiable to an individual and any information that when used separately or in combination with other information could identify an individual. “Issuer PII” means PII furnished by the Issuer, the
Servicer or their Affiliates to the Asset Representations Reviewer and PII developed or otherwise collected or acquired by the Asset Representations Reviewer in performing its obligations under this Agreement. 

(b) Use of Issuer PII. The Issuer does not grant the Asset Representations Reviewer any rights to Issuer PII except as provided in this
Agreement. The Asset Representations Reviewer will use Issuer PII only to perform its obligations under this Agreement or as specifically directed in writing by the Issuer and will only reproduce Issuer PII to the extent necessary for these
purposes. The Asset Representations Reviewer must comply with all laws applicable to PII, Issuer PII and the Asset Representations Reviewer’s business, including any legally required codes of conduct, including those relating to privacy,
security and data protection. The Asset Representations Reviewer will protect and secure Issuer PII. The Asset Representations Reviewer will implement privacy or data protection policies and procedures that comply with applicable law and this
Agreement. The Asset Representations Reviewer will implement and maintain reasonable and appropriate practices, procedures and systems, including administrative, technical and physical safeguards to (i) protect the security, confidentiality and
integrity of Issuer PII, (ii) ensure against anticipated threats or hazards to the security or integrity of Issuer PII, (iii) protect against unauthorized access to or use of Issuer PII and (iv) otherwise comply with its obligations
under this Agreement. These safeguards include a written data security plan, employee training, information access controls, restricted disclosures, systems protections (e.g., intrusion protection, data storage protection and data transmission
protection) and physical security measures. 
 (c) Additional Limitations. In addition to the use and protection requirements
described in Section 6.02(b), the Asset Representations Reviewer’s disclosure of Issuer PII is also subject to the following requirements: 

(i) The Asset Representations Reviewer will not disclose Issuer PII to its personnel or allow its personnel access to Issuer
PII except (A) for the Asset Representations Reviewer personnel who require Issuer PII to perform an Asset Review, (B) with the prior consent of the Issuer or (C) as required by applicable law. When

  
 12 

 
permitted, the disclosure of or access to Issuer PII will be limited to the specific information necessary for the individual to complete the assigned task. The Asset Representations Reviewer
will inform personnel with access to Issuer PII of the confidentiality requirements in this Agreement and train its personnel with access to Issuer PII on the proper use and protection of Issuer PII. 

(ii) The Asset Representations Reviewer will not sell, disclose, provide or exchange Issuer PII with or to any third party
without the prior consent of the Issuer. 
 (d) Notice of Breach. The Asset Representations Reviewer will notify the Issuer promptly
in the event of an actual or reasonably suspected security breach, unauthorized access, misappropriation or other compromise of the security, confidentiality or integrity of Issuer PII and, where applicable, immediately take action to prevent any
further breach. 
 (e) Return or Disposal of Issuer PII. Except where return or disposal is prohibited by applicable law, promptly on
the earlier of the completion of the Asset Review or the request of the Issuer, all Issuer PII in any medium in the Asset Representations Reviewer’s possession or under its control will be (i) destroyed in a manner that prevents its
recovery or restoration or (ii) if so directed by the Issuer, returned to the Issuer without the Asset Representations Reviewer retaining any actual or recoverable copies, in both cases, without charge to the Issuer. Where the Asset
Representations Reviewer retains Issuer PII, the Asset Representations Reviewer will limit the Asset Representations Reviewer’s further use or disclosure of Issuer PII to that required by applicable law. 

(f) Compliance; Modification. The Asset Representations Reviewer will cooperate with and provide information to the Issuer regarding the
Asset Representations Reviewer’s compliance with this Section 6.02. The Asset Representations Reviewer and the Issuer agree to modify this Section 6.02 as necessary for either party to comply with applicable law. 

(g) Audit of Asset Representations Reviewer. The Asset Representations Reviewer will permit the Issuer and its authorized
representatives to audit the Asset Representations Reviewer’s compliance with this Section 6.02 during the Asset Representations Reviewer’s normal business hours on reasonable advance notice to the Asset Representations Reviewer, and
not more than once during any year unless circumstances necessitate additional audits. The Issuer agrees to make reasonable efforts to schedule any audit described in this Section 6.02 with the inspections described in Section 5.04. The
Asset Representations Reviewer will also permit the Issuer and its authorized representatives during normal business hours on reasonable advance notice to audit any service providers used by the Asset Representations Reviewer to fulfill the Asset
Representations Reviewer’s obligations under this Agreement. 
 (h) Affiliates and Third Parties. If the Asset Representations
Reviewer processes the PII of the Issuer’s Affiliates or a third party when performing an Asset Review, and if such Affiliate or third party is identified to the Asset Representations Reviewer, such Affiliate or third party is an intended
third-party beneficiary of this Section 6.02, and this Agreement is intended to benefit the Affiliate or third party. The Affiliate or third party may enforce the PII related terms of this Section 6.02 against the Asset Representations
Reviewer as if each were a signatory to this Agreement. 

  
 13 

 ARTICLE VII. 

REMOVAL, RESIGNATION 

Section 7.01 Eligibility of the Asset Representations Reviewer. 

The Asset Representations Reviewer must be a Person who (a) is not Affiliated with VCI, the Depositor, the Servicer, the Indenture
Trustee, the Owner Trustee, the Issuer Delaware Trustee or any of their Affiliates and (b) was not, and is not Affiliated with a Person that was, engaged by the Sponsor or any underwriter to perform any due diligence on the Receivables prior to
the Closing Date. 
 Section 7.02 Resignation and Removal of Asset Representations Reviewer. 

(a) No Resignation. The Asset Representations Reviewer will not resign as Asset Representations Reviewer except if (i) the Asset
Representations Reviewer no longer meets the eligibility requirements in Section 7.01 or (ii) the Asset Representations Reviewer has determined that the performance of its duties under this Agreement is no longer permissible under
applicable law and there is no reasonable action that it could take to make the performance of its obligations under this Agreement permitted under applicable law. Upon the occurrence of one of the foregoing events, the Asset Representations
Reviewer shall promptly resign and the Servicer shall appoint a successor Asset Representations Reviewer. The Asset Representations Reviewer will deliver a notice of its resignation to the Issuer and the Servicer, and an Opinion of Counsel
supporting its determination. 
 (b) Removal. If any of the following events occur, the Servicer, by notice to the Asset
Representations Reviewer and the Issuer, may remove the Asset Representations Reviewer and terminate its rights and obligations under this Agreement: 

(i) the Asset Representations Reviewer no longer meets the eligibility requirements in Section 7.01; 

(ii) the Asset Representations Reviewer breaches of any of its representations, warranties, covenants or obligations in this
Agreement; or 
 (iii) a Bankruptcy Event of the Asset Representations Reviewer occurs. 

(c) Notice of Resignation or Removal. The Issuer will notify the Servicer, the Owner Trustee and the Indenture Trustee of any
resignation or removal of the Asset Representations Reviewer. 

  
 14 

 (d) Continue to Perform After Resignation or Removal. No resignation or removal of
the Asset Representations Reviewer will be effective, and the Asset Representations Reviewer will continue to perform its obligations under this Agreement, until a successor Asset Representations Reviewer has accepted its engagement according to
Section 7.03(b). 
 Section 7.03 Successor Asset Representations Reviewer. 

(a) Engagement of Successor Asset Representations Reviewer. Following the resignation or removal of the Asset Representations Reviewer,
the Servicer will engage a successor Asset Representations Reviewer who meets the eligibility requirements of Section 7.01. 
 (b)
Effectiveness of Resignation or Removal. No resignation or removal of the Asset Representations Reviewer will be effective until the successor Asset Representations Reviewer has executed and delivered to the Issuer and the Servicer an
agreement accepting its engagement and agreeing to perform the obligations of the Asset Representations Reviewer under this Agreement or entering into a new agreement with the Issuer and the Servicer on substantially the same terms as this
Agreement. 
 (c) Transition and Expenses. If the Asset Representations Reviewer resigns or is removed, the Asset Representations
Reviewer will cooperate with the Issuer and the Servicer and take all actions reasonably requested to assist the Issuer in making an orderly transition of the Asset Representations Reviewer’s rights and obligations under this Agreement to the
successor Asset Representations Reviewer. The Asset Representations Reviewer will pay the reasonable expenses of transitioning the Asset Representations Reviewer’s obligations under this Agreement and preparing the successor Asset
Representations Reviewer to take on the obligations on receipt of an invoice with reasonable detail of the expenses from the Issuer and the Servicer or the successor Asset Representations Reviewer. 

Section 7.04 Merger, Consolidation or Succession. 

Any Person (a) into which the Asset Representations Reviewer is merged or consolidated, (b) resulting from any merger or
consolidation to which the Asset Representations Reviewer is a party or (c) succeeding to the business of the Asset Representations Reviewer, if that Person meets the eligibility requirements in Section 7.01, will be the successor to the
Asset Representations Reviewer under this Agreement. Such Person will execute and deliver to the Issuer and the Servicer an agreement to assume the Asset Representations Reviewer’s obligations under this Agreement (unless the assumption happens
by operation of law). 

  
 15 

 ARTICLE VIII. 

OTHER AGREEMENTS 

Section 8.01 Independence of the Asset Representations Reviewer.  

The Asset Representations Reviewer will be an independent contractor and will not be subject to the supervision of, or deemed to be the agent
of, the Issuer, the Indenture Trustee or the Owner Trustee for the manner in which it accomplishes the performance of its obligations under this Agreement. None of the Issuer, the Indenture Trustee or the Owner Trustee shall be responsible for
monitoring the performance of the Asset Representations Reviewer or liable to any Person for the failure of the Asset Representations Reviewer to perform its obligations hereunder. Unless authorized by the Issuer, the Indenture Trustee or the Owner
Trustee, respectively, the Asset Representations Reviewer will have no authority to act for or represent the Issuer, the Indenture Trustee or the Owner Trustee and will not be considered an agent of the Issuer, the Indenture Trustee or the Owner
Trustee. Nothing in this Agreement will make the Asset Representations Reviewer and either of the Issuer, the Indenture Trustee or the Owner Trustee members of any partnership, joint venture or other separate entity or impose any liability as such
on any of them. 
 Section 8.02 No Petition. 

Each party hereto agrees that, prior to the date which is one year and one day after payment in full of all obligations of each Bankruptcy
Remote Party in respect of all securities issued by any Bankruptcy Remote Party (a) such party hereto shall not authorize any Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary
case or other proceeding seeking liquidation, reorganization or other relief with respect to such Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect in any jurisdiction or seeking
the appointment of an administrator, a trustee, receiver, liquidator, custodian or other similar official with respect to such Bankruptcy Remote Party or any substantial part of its property or to consent to any such relief or to the appointment of
or taking possession by any such official in an involuntary case or other proceeding commenced against such Bankruptcy Remote Party, or to make a general assignment for the benefit of its creditors generally, any party hereto or any other creditor
of such Bankruptcy Remote Party, and (b) such party shall not commence or join with any other Person in commencing any proceeding against such Bankruptcy Remote Party under any bankruptcy, reorganization, liquidation or insolvency law or
statute now or hereafter in effect in any jurisdiction. This Section 8.02 shall survive the termination of this Agreement. 

Section 8.03 Limitation of Liability of Owner Trustee . 

Notwithstanding anything contained herein to the contrary, (a) this Agreement has been executed and delivered by Citibank, N.A., not in
its individual capacity but solely as Owner Trustee (b) each of the representations, undertakings and agreements herein made on the part of the Owner Trustee and the Issuer is made and intended not as personal representations, undertakings and
agreements by Citibank, N.A. but is made and intended for the purpose of 

  
 16 

 
binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on Citibank, N.A., individually or personally, to perform any covenant either expressed or
implied contained herein of the Owner Trustee or the Issuer, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto, (d) Citibank, N.A. has made no
investigation as to the accuracy or completeness of any representations and warranties made by the Owner Trustee or the Issuer in this Agreement and (e) under no circumstances shall Citibank, N.A. be personally liable for the payment of any
indebtedness or expenses of the Owner Trustee or the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Owner Trustee or the Issuer under Agreement or any other related
documents. For the purposes of this Agreement, in the performance of its duties or obligations hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust
Agreement. 
 Section 8.04 Termination of Agreement. 

This Agreement will terminate, except for the obligations under Article VI and Sections 5.02 and 5.03, on the earlier of (a) the payment
in full of all outstanding Notes and the satisfaction and discharge of the Indenture and (b) the date the Issuer is terminated under the Trust Agreement. 

ARTICLE IX. 

MISCELLANEOUS PROVISIONS 

Section 9.01 Amendments. 

(a) Any term or provision of this Agreement may be amended by the Servicer and the Asset Representations Reviewer without the consent of the
Indenture Trustee, any Noteholder, the Issuer, the Owner Trustee or any other Person subject to the satisfaction of one of the following conditions: 
  

	 	(i)	 the Servicer delivers an Opinion of Counsel to the Indenture Trustee to the effect that such amendment will not
materially and adversely affect the interests of the Noteholders; 

  

	 	(ii)	 the Servicer delivers an Officer’s Certificate to the Indenture Trustee to the effect that such amendment
will not materially and adversely affect the interests of the Noteholders; or 

  

	 	(iii)	 the Rating Agency Condition is satisfied with respect to such amendment and the Servicer notifies the Indenture
Trustee in writing that the Rating Agency Condition is satisfied with respect to such amendment; 

  
 17 

 provided, that no amendment pursuant to this Section 9.01 shall be effective
which affects the rights, protections or duties of the Indenture Trustee or the Owner Trustee without the prior written consent of such Person. 

(b) This Agreement may also be amended from time to time by the Servicer and the Asset Representations Reviewer with the consent of the Holders
of Notes evidencing not less than a majority of the aggregate principal balance of the Outstanding Notes for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Noteholders. It will not be necessary for the consent of Noteholders to approve the particular form of any proposed amendment or consent, but it will be sufficient if such consent approves the substance thereof. The
manner of obtaining such consents (and any other consents of Noteholders provided for in this Agreement) and of evidencing the authorization of the execution thereof by Noteholders will be subject to such reasonable requirements as the Indenture
Trustee may prescribe, including the establishment of record dates pursuant to the Note Depository Agreement. 
 Section 9.02
Assignment; Benefit of Agreement; Third Party Beneficiaries. 
 (a) Assignment. Except as stated in Section 7.04, this
Agreement may not be assigned by the Asset Representations Reviewer without the consent of the Issuer and the Servicer. 
 (b) Benefit of
Agreement; Third-Party Beneficiaries. This Agreement is for the benefit of and will be binding on the parties and their permitted successors and assigns. The Owner Trustee, the Issuer Delaware Trustee and the Indenture Trustee, for the benefit
of the Noteholders, will be third-party beneficiaries of this Agreement and may enforce this Agreement against the Asset Representations Reviewer and the Servicer. No other Person will have any right or obligation under this Agreement. 

Section 9.03 Notices. 

All demands, notices and communications hereunder shall be in writing and shall be delivered or mailed by registered or certified first-class United States mail, postage prepaid, hand delivery, prepaid courier service, via electronic mail, or by facsimile and addressed in each case as specified on Schedule II to the Sale and Servicing
Agreement, or at such other address as shall be designated by any of the specified addressees in a written notice to the other parties hereto. 

Section 9.04 Governing Law. 

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL, SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO THE RULES THEREOF RELATING TO CONFLICTS OF LAW, OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

  
 18 

 Section 9.05 Submission to Jurisdiction; Waiver of Jury Trial. 

Each of the parties hereto hereby irrevocably and unconditionally: 

(a) submits for itself and its property in any legal action or proceeding relating to this Agreement or any documents executed and delivered in
connection herewith, or for recognition and enforcement of any judgment in respect thereof, to the nonexclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New
York and appellate courts from any thereof; 
 (b) consents that any such action or proceeding may be brought and maintained in such courts
and waives any objection that it may now or hereafter have to the venue of such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

(c) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail
(or any substantially similar form of mail), postage prepaid, to such Person at its address determined in accordance with Section 9.03; 

(d) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the
right to sue in any other jurisdiction; and to the extent permitted by applicable law, each party hereto irrevocably waives all right of trial by jury in any action, proceeding or counterclaim based on, or arising out of, under or in connection with
this Agreement, any other Transaction Document, or any matter arising hereunder or thereunder. 
 Section 9.06 No Waiver;
Remedies. 
 No party’s failure or delay in exercising a power, right or remedy under this Agreement will operate as a waiver. No
single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power, right or remedy or the exercise of any other power, right or remedy. The powers, rights and remedies under this Agreement are in
addition to any powers, rights and remedies under law. 
 Section 9.07 Severability. 

If a part of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining Agreement and will
not affect the validity, legality or enforceability of the remaining Agreement. 
 Section 9.08 Headings. 

The headings in this Agreement are included for convenience and will not affect the meaning or interpretation of this Agreement. 

  
 19 

 Section 9.09 Counterparts. 

This Agreement may be executed in multiple counterparts. Each counterpart will be an original and all counterparts will together be one
document. 
 [Remainder of Page Left Blank] 

  
 20 

 IN WITNESS WHEREOF, the Issuer, the Servicer, and the Asset Representations Reviewer have
caused their names to be signed hereto by their respective officers thereunto duly authorized as of the date first above written. 
  

			
	 VOLKSWAGEN AUTO LOAN ENHANCED

    TRUST 2018-2, as Issuer

		
	By:	 	Citibank, N.A., not in its individual capacity, but solely as Owner Trustee
		
	By:	 	 /s/ Louis Piscitelli

		 	Name: Louis Piscitelli
		 	Title: Senior Trust Officer
	
	VW CREDIT, INC.,
	    as Servicer
		
	By:	 	 /s/ David Rands

		 	Name: David Rands
		 	Title:   Executive Vice President and
		 	            Chief Financial Officer
		
	By:	 	 /s/ Jens Schreiber

		 	Name: Jens Schreiber
		 	Title: Treasurer
	
	CLAYTON FIXED INCOME SERVICES LLC,
	as Asset Representations Reviewer
		
	By:	 	 /s/ Robert Harris

		 	Name: Robert Harris
		 	Title: Secretary

 2018-2 Asset Representations Review Agreement 

 Schedule A 

Representations and Warranties, Review Materials and Tests 

 Schedule A 

REPRESENTATIONS AND WARRANTIES, REVIEW MATERIALS AND TESTS 

Characteristics of Receivables (a): Each Receivable:  
  

	 	(i)	 has been fully executed by the Obligor thereto; 

 

	 	(ii)	 has either (A) been originated by a Dealer located in the United States to finance the sale by a Dealer of
the related Financed Vehicle and has been purchased by the Originator or (B) has been originated or acquired by the Originator; 

  

	 	(iii)	 as of the Closing Date is secured by a first priority perfected security interest in the Financed Vehicle in
favor of the Originator, as secured party, or all necessary actions have been commenced that would result in a first priority validly perfected security interest in the Financed Vehicle in favor of the Originator, as secured party;

  

	 	(iv)	 contains provisions that permit the repossession and sale of the Financed Vehicle upon a default under the
Receivable by the Obligor; 

  

	 	(v)	 provided, at origination, for level monthly payments which fully amortize the initial Outstanding Principal
Balance over the original term; provided, that the amount of the first and last payments may be different but in no event more than three times the level monthly payment; 

 

	 	(vi)	 provides for interest at the Contract Rate specified in the Schedule of Receivables; and 

 

	 	(vii)	 was denominated in Dollars. 

Documents 
  

	 	(i)	 Retail contract 

  

	 	(ii)	 Title documents 

  

	 	(iii)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Fully Executed 

  

	 	(A)	 Confirm there is a signature of the appropriate Obligor on the contract. 

 

	 	(ii)	 Origination of Receivable 

 

	 	(A)	 Confirm the Receivable was either originated by a Dealer or Originator or acquired by the Originator.

  

	 	(B)	 If originated by a Dealer, confirm the Dealer’s address is in the United States. 

 

	 	(C)	 If originated by a Dealer, confirm the Receivable was assigned by the Dealer to the Originator.

  

	 	(iii)	 First Priority Interest 

	 	(A)	 Confirm the contract contains language regarding the creation of an enforceable security interest.

  

	 	(B)	 Confirm that a Certificate of Title lists the Depositor as primary lienholder or that an application for a
Certificate of Title has been filed in the applicable state listing the Depositor as primary lienholder. 

  

	 	(C)	 Confirm that the Obligor’s name, or an acceptable variation thereof, on the contract matches the name on
the title documents. 

  

	 	(D)	 Confirm that the Vehicle Identification Number (VIN) on the contract matches the VIN on the title documents.

  

	 	(E)	 Confirm the Receivable is listed on the Schedule of Receivables. 

 

	 	(iv)	 Repossession 

  

	 	(A)	 Observe the contract and confirm it contains provisions that permit the repossession and sale of the Financed
Vehicle upon a default under the Receivable by the Obligor. 

  

	 	(v)	 Payment Schedule Structure 

 

	 	(A)	 Confirm all payments are equivalent with the possible exception of the first and last month’s payments
which may differ by no more than three times the amount of the level monthly payment. 

  

	 	(B)	 Confirm that the number of payments and the amount of payments, together with any first and last month’s
payment (if applicable), equals the Total of the Payments as stated within the Truth and Lending section of the contract. 

  

	 	(vi)	 Contract Rate 

  

	 	(A)	 Review the system screenprint and confirm the Contract Rate matches the Contract Rate in the Schedule of
Receivables. 

  

	 	(vii)	 Dollar Denomination 

  

	 	(A)	 Review the retail contract and confirm the amount is denominated in Dollars. 

 

	 	(viii)	 If steps (i) through (vii) are confirmed, then Test Pass. 

Representation 
 Individual Characteristics
(b): Each Receivable has the following individual characteristics as of the Cut-Off Date: 
  

	 	(i)	 each Receivable is secured by a new or used automobile, minivan or sport utility vehicle;

  

	 	(ii)	 each Receivable has a Contract Rate of no less than 0.00%; 

 

	 	(iii)	 each Receivable had an original term to maturity of not more than 72 months and not less than 12 months and
each Receivable has a remaining term to maturity, as of the Cut-Off Date, of 3 months or more; 

  
 2 

	 	(iv)	 each Receivable has an Outstanding Principal Balance as of the Cut-Off
Date of greater than or equal to $1,000.70; 

  

	 	(v)	 no Receivable has a scheduled maturity date later than July 28, 2024; 

 

	 	(vi)	 no Receivable was more than 30 days past due as of the Cut-Off Date;

  

	 	(vii)	 as of the Cut-Off Date, no Receivable was noted in the records of VCI
or the Servicer as being the subject of any pending bankruptcy or insolvency proceeding; 

  

	 	(viii)	 no Receivable is subject to a force-placed Insurance Policy on the related Financed Vehicle; and

  

	 	(ix)	 each Receivable is a Simple Interest Receivable. 

Documents 
  

	 	(i)	 Retail contract 

  

	 	(ii)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Financed Vehicle 

  

	 	(A)	 Review the contract and confirm that the Financed Vehicle is new or used automobile, minivan or sport utility
vehicle. 

  

	 	(ii)	 Contract Rate 

  

	 	(A)	 Review the system screenprint and confirm the Contract Rate is not less than the minimum allowable Contract
Rate. 

  

	 	(iii)	 Original Term 

  

	 	(A)	 Review the contract and confirm the number of payments (including first and last payments) does not exceed the
maximum allowable contract term of no more than 72 months. 

  

	 	(B)	 Review the system screenprint and confirm that the remaining term of the contract is within the allowable
limits of no less than 12 months. 

  

	 	(C)	 Review the system screenprint and confirm that, as of the Cut-Off Date,
the remaining term to maturity of the contract is no less than 3 months. 

  

	 	(iv)	 Remaining Balance 

  

	 	(A)	 Review the system screenprint and confirm that the unpaid balance as of the
Cut-Off Date is not less than the minimum allowable Outstanding Principal Balance. 

  

	 	(v)	 maturity date 

  

	 	(A)	 Review the system screenprint and confirm that the Receivable has a maturity date on or before July 28,
2024. 

  

	 	(vi)	 Delinquency Status 

  
 3 

	 	(A)	 Review the system screenprint and confirm that the Receivable is not more than 30 days past due as of the Cut-Off Date. 

  

	 	(vii)	 Bankruptcy and Insolvency 

 

	 	(A)	 Verify through the system screenprint that there is no evidence the Receivable is the subject of a bankruptcy
or insolvency proceeding. 

  

	 	(viii)	 Force Place Insurance 

 

	 	(A)	 Verify through the system screenprint that the Receivable did not have a force-placed Insurance Policy.

  

	 	(ix)	 Interest Method 

  

	 	(A)	 Review the contract and confirm that the Receivable is amortized using the Simple Interest Method.

  

	 	(x)	 If steps (i) through (ix) are confirmed, then Test Pass. 

Representation 
 Compliance with Law
(c): The Receivable complied, at the time it was originated or made, in all material respects with all requirements of law in effect at that time and applicable to such Receivable. 

Documents 
  

	 	(i)	 Retail contract 

  

	 	(ii)	 List of approved contract forms 

 

	 	(iii)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Observe the contract and confirm the form number and revision date are on the list of approved contract Forms.

  

	 	(ii)	 Confirm the following disclosures are included in the contract: 

 

	 	(A)	 Prepayment disclosure 

 

	 	(B)	 Late payment policy including the late charge amount (or calculation) 

 

	 	(C)	 Security interest disclosure 

 

	 	(D)	 Contract reference 

  

	 	(E)	 Insurance requirements 

 

	 	(iii)	 Review the system screenprint and confirm that there is no evidence of any judgment against VCI indicating that
the contract was originated in violation of applicable law. 

  

	 	(iv)	 Review the system screenprint and confirm that there is no evidence of any Obligor(s) alleging non-compliance. 

  
 4 

	 	(v)	 If steps (i) through (iv) are confirmed, then Test Pass. 

Representation 
 Binding Obligation (d): The
Receivable constitutes the legal and binding payment obligation in writing of the Obligor, enforceable by the holder thereof in all material respects, subject as to enforcement, to applicable bankruptcy, insolvency, reorganization, liquidation or
other laws and equitable principles, consumer protection laws and the Servicemembers Civil Relief Act. 
 Documents 

 

	 	(i)	 Retail contract 

  

	 	(ii)	 List of approved forms 

Procedures to be Performed 
  

	 	(i)	 Confirm that the contract form number and revision date are on the list of approved contract forms.

  

	 	(ii)	 Confirm that the Obligor(s) signed the contract. 

 

	 	(iii)	 If steps (i) and (ii) are confirmed, then Test Pass. 

Representation 
 Receivable in Force
(e): As of the Cut-Off Date, neither VCI’s nor the Servicer’s records related to the Receivable indicate that the Receivable has been satisfied, subordinated or rescinded or that the related
Financed Vehicle been released from the lien granted by the Receivable in whole or in part. 
 Documents 

 

	 	(i)	 Title documents 

  

	 	(ii)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Confirm there is no indication within the title documents or the system screenprint that the Receivable was
satisfied. 

  

	 	(ii)	 Confirm there is no indication within the title documents or the system screenprint that the Receivable was
subordinated or rescinded. 

  

	 	(iii)	 Confirm there is no indication within the title documents or the system screenprint that the Financed Vehicle
has been released from the Lien in whole or in part. 

  

	 	(iv)	 Confirm that the Receivable is noted as “active” within the system screenprint.

  

	 	(v)	 If steps (i) through (iv) are confirmed, then Test Pass. 

  
 5 

 Representation 

No Default (f): Except for payment delinquencies continuing for a period of not more than 30 days as of the
Cut-Off Date, the records of the Servicer did not disclose that any default, breach, violation or event permitting acceleration under the terms of the Receivable existed as of the Cut-Off Date or that any continuing condition that with notice or lapse of time, or both, would constitute a default, breach, violation or event permitting acceleration under the terms of the Receivable had arisen
as of the Cut-Off Date. 
 Documents 

 

	 	(i)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Observe the system screenprint and confirm there is no indication of a default, breach, violation or event that
would permit acceleration under the terms of the Receivable except for payment default within 30 days of the Cut-Off Date. 

 

	 	(ii)	 Confirm that no continuing condition would constitute a default, breach, violation or event permitting
acceleration under the terms of the Receivable. 

  

	 	(iii)	 If steps (i) and (ii) are confirmed, then Test Pass. 

Representation 
 Insurance (g): The
Receivable requires the Obligor thereunder to insure the Financed Vehicle under a physical damage insurance policy. 
 Documents 

 

	 	(i)	 Retail contract 

Procedures to be Performed 
  

	 	(i)	 Confirm the contract contains language that requires the Obligor(s) to obtain and maintain physical damage
insurance covering the Financed Vehicle. 

  

	 	(ii)	 If step (i) is confirmed, then Test Pass. 

Representation 
 No Government Obligor
(h): The Obligor on the Receivable is not listed on VCI’s records as the United States of America or any state thereof or any local government, or any agency, department, political subdivision or instrumentality of the United States of
America or any state thereof or any local government. 
 Documents 
  

	 	(iii)	 Retail contract 

Procedures to be Performed 
  

	 	(i)	 Confirm the Buyer section of the contract includes the name of a natural person. 

 

	 	(ii)	 If the Buyer section of the contract does not report a natural person’s name, confirm internet search
results show no indication the Buyer is the United States of America or any State, or any agency, department or instrumentality of the United States of America or any State. 

 

	 	(iii)	 If step (i) or (ii) is confirmed, then Test Pass. 

  
 6 

 Representation 

Assignment (i): The terms of the Receivable do not prohibit the sale, transfer or assignment of such Receivable or the grant of a security
interest in such Receivable under the Indenture. 
 Documents 
  

	 	(i)	 Retail contract 

  

	 	(ii)	 List of approved forms 

Procedures to be Performed 
  

	 	(i)	 Confirm that the contract form number and revision date are included on the list of approved forms.

  

	 	(ii)	 Confirm that the contract does not contain language that limits the sale or transfer of the Receivable.

  

	 	(iii)	 If (i) and (ii) are confirmed, then Test Pass. 

Representation 
 Good Title (j):
Immediately prior to the transfers and assignments herein contemplated, VCI had good and marketable title to each Receivable free and clear of all Liens (except Permitted Liens and any Lien that will be released prior to the assignment of such
Receivable hereunder), and, immediately upon the transfer thereof to the Purchaser, the Purchaser will have good and marketable title to each Receivable, free and clear of all Liens except Permitted Liens. 

Documents 
  

	 	(i)	 Retail contract 

  

	 	(ii)	 Title documents 

Procedures to be Performed 
  

	 	(i)	 Review the contract and confirm that the Receivable has not been assigned to any party other than VCI (or an
acceptable variation of the name). 

  

	 	(ii)	 Observe the title documents and confirm they report VCI, or an acceptable variation of its name, as the first
lien holder. 

  

	 	(iii)	 If steps (i) and (ii) are confirmed, then Test Pass. 

Representation 
 Receivable Files
(k): There is only one original executed copy of each “tangible record” constituting or forming a part of such Receivable that is tangible chattel paper and a single “authoritative copy” (as such term is used in Section 9-105 of the UCC) of each electronic record constituting or forming a part of such Receivable that is electronic chattel paper. The Receivable Files that constitute or evidence such
Receivable do not have any marks or notations indicating that the Receivable has been pledged, assigned or otherwise conveyed by VCI to any Person other than to a party to the Transaction Documents. 

  
 7 

 Documents 
  

	 	(i)	 Retail contract 

Procedures to be Performed 
  

	 	(i)	 Confirm there is a signature of the appropriate Obligor(s) on the contract. 

 

	 	(ii)	 Confirm that the contract either constitutes an electronically authenticated original, or is marked
“Authoritative Copy.” 

  

	 	(iii)	 Confirm no marks or notations on contract indicating that it has been pledged, assigned or otherwise conveyed
to any Person other than a party to the Transaction Documents. 

  

	 	(iv)	 If steps (i) through (iii) are confirmed, then Test Pass. 

Representation 
 No Defenses (l):
VCI’s and the Servicer’s FiServ electronic data warehouse containing records related to the Receivables do not reflect any right of rescission, set-off, counterclaim or defense, or of the same being
asserted or threatened, in writing by any Obligor with respect to any Receivable. 
 Documents 

 

	 	(i)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Review the system screenprint and confirm there is no evidence of litigation or other attorney involvement.

  

	 	(ii)	 Review the system screenprint and confirm that there is no evidence that the Receivable is subject to
recission, set-off, counterclaim or defense that would cause the Receivable to become invalid. 

If steps (i) and (ii) are confirmed, then Test Pass. 

Representation 
 No Repossession (m):
As of the Cut-Off Date, no Financed Vehicle shall have been repossessed. 
 Documents 

 

	 	(i)	 System screenprint 

Procedures to be Performed 
  

	 	(i)	 Review the system screenprint and confirm the Receivable was not held in repossession as of the Cut-Off Date. 

 If step (i) is confirmed, then Test Pass. 

  
 8Exhibit

Exhibit 10.1

FIRSTENERGY SOLUTIONS CORP. VOLUNTARY 
ENHANCED RETIREMENT OPTION
Non-bargaining
INTRODUCTION...............................................................................................................2
ELIGIBILITY......................................................................................................................2
ANY OTHER TERMINATION OF EMPLOYMENT.......................................................3
RIGHTS TO EMPLOYMENT............................................................................................3
RELEASE OF CLAIMS.....................................................................................................3
PENSION PLAN................................................................................................................4
VERO BENEFITS..............................................................................................................4
NO DUPLICATION; SET-OFF..........................................................................................6
PLAN ADMINISTRATION...............................................................................................6
CLAIMS PROCEDURES..................................................................................................7
OTHER VERO INFORMATION.......................................................................................9

1

INTRODUCTION
This document sets forth the benefits, rights and obligations under the FirstEnergy Solutions Corp. Voluntary Enhanced Retirement Option (the “VERO”) maintained by FirstEnergy Solutions Corp. (the “Company”). The VERO is an “employee welfare benefit plan” within the meaning of Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder (collectively, “ERISA”). The VERO shall be effective as of January 2, 2019 (the “Effective Date”). 
Effective as of the Effective Date, if you are eligible to participate in the VERO, and:
		
	•
	you are notified by the Company that you are eligible to participate in the VERO;

		
	•
	you inform the Company of your election of VERO Benefits (as defined below) within the designated time period; and

		
	•
	you retire from the Company; then

you are eligible to receive certain employee benefits as described in this document, provided you fulfill the conditions precedent set forth herein.
It is the intent that this document serves as both the summary plan description and the written plan document of the VERO. The VERO describes further herein the ERISA rights of plan participants. You should keep this document for future reference and refer to your Employee Compensation & Benefits Handbook or contact your local Human Resources representative for specific details regarding other benefit availability upon retirement.  
1.    ELIGIBILITY
Generally, if you are an active employee of the Company, and you will be at least fifty-eight (58) years old by the Retirement Date (as defined below), with a minimum of ten (10) years of credited service under the FirstEnergy Corp. Master Pension Plan (the “Pension Plan”), you may be offered VERO Benefits if you volunteer to retire during the “specified period.” The “specified period” shall generally begin on January 2, 2019 and end on June 30, 2019.  The VERO shall terminate on the earlier of the Plan of Reorganization Effective Date1 or December 31, 2019 (the “Termination Date”); provided, however, such termination will not adversely affect the rights of any person who has elected to receive VERO Benefits and terminated his or her employment due to retirement in accordance with the VERO on or prior to the Termination Date, and who timely meets all other requirements for VERO Benefits in accordance with the VERO. In some cases, based on business
1  “Plan of Reorganization Effective Date” means the date upon which all of the conditions to the effective date contained in a plan of reorganization for the Company that has been confirmed by an order of the United States Bankruptcy Court for the Northern District of Ohio, Eastern Division (the “Bankruptcy Court”) have each been satisfied or waived.

2

need and on a limited basis, the “specified period” and any individual retirement date may be extended one or more times, but in no event beyond the earlier of the Plan of Reorganization Effective Date or December 31, 2019. In all cases, designation of your retirement date (such date, the “Retirement Date”) during the “specified period” shall be at the sole discretion of the Company.
If you meet eligibility requirements, you will be notified of your eligibility and will be given until December 28, 2018 to decide whether to elect VERO Benefits unless you are a person identified as a potential “insider” by the Company in footnote 17 in the Wages Motion (an “Insider”).2 By 5 p.m. EST on December 28, 2018, an eligible employee (other than an Insider) must elect in writing, on a designated form, to participate in the VERO. Unless you are an Insider, you will have until the Effective Date to revoke that election. Thereafter, the election shall be irrevocable. (Please Note: Once the revocation period lapses your election will be considered an irrevocable notice of retirement.) If you are an Insider, you will have until January 16, 2019 to elect in writing, on a designated form, to participate in the VERO, and you will have until January 21, 2019 to revoke that election. Thereafter, the election shall be an irrevocable notice of retirement for any electing Insider. Your Retirement Date will be determined by the Company, and it will endeavor to provide you as much notice as possible. All statements of expected benefits provided in connection with the election of VERO Benefits are estimates.  
Employees still on the Company’s payroll after the date the VERO is announced, who had previously provided written notice of their intent to retire in the future, may request revocation of that notice and participate in the VERO if they are otherwise eligible and make a timely election to participate in the VERO as described above.
Temporary employees are not eligible for VERO Benefits.
2.    ANY OTHER TERMINATION OF EMPLOYMENT 
No VERO Benefits will be offered to you if you separate from employment with the Company for any reason other than retirement pursuant to the procedures set forth in the VERO. You will also be ineligible for benefits under the VERO if you are involuntarily terminated, either under circumstances that qualify you for severance benefits under the Severance Plan (as defined below) or otherwise. The Company expressly reserves the right to limit the circumstances under which VERO Benefits will be offered. If you have been previously notified of your eligibility for benefits under the Severance Plan, but remain employed on the Company’s payroll after December 28, 2018, then you may elect either to receive benefits under the VERO (subject to the eligibility and election timing requirements in Section 1) or the Severance Plan, but not both.
2 “Wages Motion” means Debtors’ Motion for Entry of Interim and Final Orders Authorizing the Debtors to (A) Pay Certain Prepetition Compensation and Reimbursable Employee Expenses, (B) Pay and Honor Employee and Retiree Medical and Other Benefits, (C) Continue to Participate in FE Corp.’s Employee Compensation, Welfare, Retiree Benefit and Pension Plans and Programs, and (D) Continue to Participate in FE Corp.’s Workers Compensation Program and Modify the Automatic Stay With Respect Thereto[Docket No. 53] filed in the Bankruptcy Court.

3

		
	3.
	RIGHTS TO EMPLOYMENT

It is not the intent of the Company to confer through the VERO, either expressly or by implication, any rights to employment, any recall rights, any right of rehire or preference in rehire upon any employee. It is further not the intent of the Company to suggest that it may terminate the employment of any employee only upon a showing of misconduct, poor job performance, or absenteeism. The Company specifically reserves the right to terminate the employment of any employee at any time in accordance with applicable law and/or Company policy.
		
	4.
	RELEASE OF CLAIMS

Notwithstanding any provision herein to the contrary, the payment of any VERO Benefits to you shall be conditioned on your execution, delivery to the Company, non-revocation of a release of claims in a form approved by the Company (the “Release”) within the Release Execution Period (as defined below) and the expiration of the Release Revocation Period (as defined below) (such date, the “Release Effective Date”). You shall have forty-five (45) days following the Retirement Date to execute the Release (the “Release Execution Period”). Following your execution of the Release, you shall have seven (7) days to revoke such Release (the “Release Revocation Period”). If you fail to execute the Release during the Release Execution Period, or if you timely revoke your acceptance of such Release following its execution, then you shall not be entitled to receive any VERO Benefits.
Accepting a position with an Affiliate of the Company, either before the date you sign the Release, or up until the receipt of a VERO Benefit, will result in ineligibility for VERO Benefits. For purposes of the VERO, “Affiliate” shall have the same meaning as such term is defined in Section 101(2) of Title 11 of the United States Code and shall not include any entity that acquires all or substantially all of the assets of the Company on or before the Plan of Reorganization Effective Date provided that such entity is not owned by FirstEnergy Corp. 
5.PENSION PLAN 
You may already be eligible to begin receiving early or normal retirement benefits under the Pension Plan as of your Retirement Date. In such case, you may immediately commence your early or normal pension benefit in accordance with the terms and conditions of the Pension Plan.  Your eligibility for an early or normal retirement benefit under the Pension Plan is not in any manner diminished or enhanced by your receipt of VERO Benefits.
6.VERO BENEFITS 
Subject to your eligibility for and timely election to participate in the VERO, your continued employment with the Company through, and voluntary termination of your employment with the Company as of, the Retirement Date (and assuming you do not accept a position with an Affiliate as provided in Section 4), and subject to your timely execution (and non-revocation) of a Release 

4

pursuant to Section 4 of the VERO, you will be entitled to receive the following payments and benefits (together, the “VERO Benefits”):
		
	(a)
	Lump Sum Payment. You will be paid a lump sum cash payment (the “Cash Severance Payment”) in an amount equivalent to your cash severance payment benefit under the FirstEnergy Severance Benefits Plan or the FirstEnergy Executive Severance Benefits Plan, as applicable (collectively, the “Severance Plan”), except that if you are an Insider your Cash Severance Payment will be capped in accordance with section 503(c)(2) of Title 11 of the United States Code and the Final Order Approving Wages Motion3. The Cash Severance Payment will be paid to you in a lump sum as soon as administratively practicable after the Release Effective Date, but in no event later than the second regularly scheduled payroll date following the Release Effective Date; provided, that, in the event your Retirement Date is later than November 1, 2019, the payment will be made no later than the second regularly scheduled payroll date of 2020. The Cash Severance Payment is subject to income tax withholding at a supplemental federal rate in addition to any applicable state or local withholding.  Applicable FICA and Medicare withholding also will apply.  The Cash Severance Payment is not considered compensation for the Pension Plan or any other retirement plan or for any other benefits determination, except as set forth above.

		
	(b)
	Continuation of Medical Coverages.  You may elect for you and your eligible dependents to continue Health Care, Prescription, Dental and Vision Coverage through the Company’s Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) administrator at retirement at active employee rates. For the period following your termination of employment equal to the number of weeks used to calculate your severance payment under the Severance Plan (the “Benefits Continuation Period”), you will continue to pay the portion of the premium for the COBRA coverage you elect, at the same rates set from time to time for active employees and for the same plan options; provided, that, no such period shall exceed eighteen (18) months following your termination. Any amendment to any Health Care, Prescription, Dental and Vision Coverage plan that applies to active employees of the Company, shall also be applicable to any coverage you elect.  The Claims Administrator (as defined below) may amend, modify or terminate any such plan. If you are a “highly compensated employee” as defined under Section 105(h) of the Internal Revenue Code of 1986 and the rules and regulations promulgated thereunder (collectively, the “Code”), the value of the active employee Health Care, Prescription, Dental and Vision Coverage may be taxable to you if the VERO is discriminatory under Section 105(h).

3 “Final Order Approving Wages Motion” means Final Order Authorizing the Debtors to (A) Pay Certain Prepetition Compensation and Reimbursable Employee Expenses, (B) Pay and Honor Employee and Retiree Medical and Other Benefits, (C) Continue to Participate in FE Corp.’s Employee Compensation, Welfare, Retiree Benefit and Pension Plans and Programs, and (D) Continue to Participate in FE Corp.’s Workers Compensation Program and Modify the Automatic Stay With Respect Thereto[Docket  No. 491] issued by the Bankruptcy Court on May 8, 2018. 

5

After the Benefits Continuation Period expires, you and your eligible dependents may continue your coverage by paying the full COBRA premium for the remainder of the period you are eligible for COBRA benefits. COBRA coverage may be continued for a period of eighteen (18) months (or longer, if required by applicable law) (the “COBRA Period”) less the months of coverage subsidized by the Company during the Benefits Continuation Period.
Following the expiration of the COBRA Period and in the event you have not yet attained the age of sixty-five (65), you will have access to the government planned health care exchanges (as a result of the federal health care legislation) or a Private Exchange through Via Benefits (formerly OneExchange), or you may choose to maintain coverage under the FirstEnergy Access Plan, which includes Rx Base prescription drug coverage as part of the Base PPO medical coverage, by paying the full premium.  Retirees who are age sixty-five (65) or older will have access to purchase an individual Medicare plan through Via Benefits.
		
	(c)
	Temporary Pension Enhancement. You will be paid a monthly temporary pension enhancement payment in the amount of $1,500 until such time as you reach the age of sixty-five (65); provided, that, you will be entitled to at least twenty-four (24) monthly payments and, if applicable, will continue to receive such payments following your sixty-fifth (65th) birthday until you have received twenty-four (24) monthly payments in total (the “Temporary Pension Enhancement Payments”). The first Temporary Pension Enhancement Payment will be paid to you, less all applicable federal, state or local tax withholdings, as soon as administratively practicable after the Release Effective Date, but in no event later than the second regularly scheduled payroll date following the Release Effective Date; provided, that, in the event your Retirement Date is later than November 1, 2019, the payment will be made on the second regularly scheduled payroll date of 2020 (with the first such payment inclusive of any payments which would otherwise have been made during such initial period), after which the remaining Temporary Pension Enhancement Payments shall thereafter be paid to you on a monthly basis. You will begin to receive your Temporary Pension Enhancement Payments in accordance with the payment schedule provided herein irrespective of whether you have commenced receiving payments under the Pension Plan. 

		
	(d)
	Paid Time Off Payment. You will receive in your final regularly scheduled paycheck from the Company prior to or on your Retirement Date: (i) payment for any unused paid time off (“PTO”) and deferred PTO and (ii) payment for any purchased PTO that is unused but for which employee contributions have been made and any unused banked/frozen vacation (collectively, the “PTO Payment”). 

		
	(e)
	Termination Date. At least one business day before the Termination Date, the Company will pay to the Claims Administrator all unpaid amounts due and owing by the Company under clauses (a) and (d) (excluding unused banked and frozen vacation) for those employees 

6

whose Retirement Date is on or before the Termination Date.  In the event that you do not sign a Release in accordance with Section 4 herein or you revoke the Release prior to the expiration of the Release Revocation Period, then the Claims Administrator shall return to the Company all such funds which would have been paid to you under clauses (a) and (d) (excluding banked and frozen vacation). The Claims Administrator is FirstEnergy Service Company or its designee. 

7.    NO DUPLICATION; SET-OFF
VERO Benefits are not intended to duplicate or replace benefits such as severance pay or similar benefits under other benefit plans or employment contracts of the Company or applicable laws, including the Worker Adjustment Retraining Notification Act of 1988, as amended. To the extent permitted by law and should such other benefits be payable, your VERO Benefits will be reduced by the amount of any other such payments that have already been made. As an alternative, VERO Benefits previously paid under the VERO will be treated as having been paid to satisfy such other benefit obligations. In either case, the Plan Administrator (as defined below) will determine how to apply this provision and may override other provisions in the VERO by doing so. The Company further reserves the right to reduce the amount of VERO Benefits to recover any amounts that you may otherwise owe to the Company.
8.    PLAN ADMINISTRATION 
(a)    Authority of the Plan Administrator. Every ERISA plan has a “Plan Administrator.” The “Plan Administrator” for the VERO is FirstEnergy Solutions Corp. or its designee.  The Plan Administrator may delegate any of its duties or authorities to any person or entity.  Except as provided herein, the Plan Administrator has the authority to make all decisions under the VERO, including making determinations about eligibility pursuant to the terms of the VERO, and the amounts of VERO Benefits payable under the VERO, and construing and interpreting all VERO provisions. The Plan Administrator may use its discretion to resolve conflicts between the provisions of this document and any other documents related to the VERO. The determinations of the Plan Administrator are final and binding on the plan participants and all other parties, except as otherwise provided by law or under the VERO. Because the Plan Administrator has discretion to construe and interpret the VERO, decisions made by the Plan Administrator will be given deference if reviewed by a court.
(b)    Named Fiduciary. Every ERISA plan has a “Named Fiduciary” who controls and manages the VERO’s operation and administration. The VERO’s “Named Fiduciary” is the Plan Administrator. The Plan Administrator may delegate responsibilities for the VERO’s operation and 

7

administration, may employ persons to assist in fulfilling its responsibilities under the VERO, and may allocate or reallocate fiduciary responsibilities under the VERO. 
(c)    Fiduciary Duties and Responsibilities. The Plan Administrator is a plan fiduciary under ERISA. The VERO may have other fiduciaries as well. Each plan fiduciary must discharge his or her duties with respect to the VERO solely in the interest of plan participants and their beneficiaries, for the exclusive purpose of providing benefits to those individuals and defraying reasonable expenses of the VERO’s administration, and in accordance with the terms of the VERO. Each fiduciary must act with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in exercising that authority.
A fiduciary may serve in more than one fiduciary capacity. A named fiduciary may allocate any of the named fiduciary’s responsibilities for the VERO’s operation and administration to other fiduciaries. Either the named fiduciary or another fiduciary appointed by the named fiduciary may employ one or more persons to render advice regarding any responsibilities the fiduciary has under the VERO.  
(d)    Plan Construction. The VERO will be governed and construed in accordance with the laws of the state of Ohio, without giving effect to any choice of law or conflicting provision or rule that would cause the laws of any jurisdiction other than the state of Ohio to be applied, except to the extent such laws are preempted by federal law. If any VERO provision is held invalid or unenforceable, the VERO will be construed and enforced as if the invalid or unenforceable provision had not been included in the VERO.
9.    CLAIMS PROCEDURES
(a)    Applying for Benefits
VERO Benefits will be offered automatically to those who qualify under the provisions of the VERO.  It is not necessary for you to submit a claim for VERO Benefits (a “Claim”) unless you believe you qualify and you have not been notified that you will be offered VERO Benefits.  A Claim related to VERO eligibility must be filed with the Claims Administrator within sixty (60) days of the Effective Date. 
(b)    Claims and Appeals Procedures 
The following is an outline of the procedures for the processing of a Claim and summarizes the duties and responsibilities of the Plan Administrator and the Appeals Committee.  The “Appeals Committee” means the committee designated by the Plan Sponsor, which shall consist of at least three (3) employees of the Plan Administrator. The Appeals Committee handles the appeal of any 

8

Claim determination made by the Plan Administrator with respect to the eligibility and entitlement of a participant, beneficiary or other claimant to VERO Benefits.  The procedures defined in this document are intended to comply with ERISA.
(i)    Plan Administrator Determination. A Claim must be in writing, signed by the participant, beneficiary or other claimant, and submitted in a manner acceptable to the Plan Administrator. A Claim is initially reviewed by the Plan Administrator who has the sole discretion and authority to interpret the VERO and determine whether an employee qualifies for VERO Benefits.  The Plan Administrator shall process the Claim and notify you of the initial determination with respect to the Claim within ninety (90) days of the date of receipt of the Claim (the “Initial Claims Determination Period”).  The Plan Administrator may take up to an additional ninety (90) days following the expiration of the Initial Claims Determination Period (the “Extended Claims Determination Period” and together with the Initial Claims Determination Period, the “Claims Determination Period”) to make a determination with respect to a Claim if extenuating circumstances require such an extension.  If an additional extension of up to ninety (90) days is required, you will be notified in writing of the extension, the extenuating circumstances requiring the extension and the date by which the Plan Administrator expects to make a determination. Except as provided below, all decisions of the Plan Administrator with respect to such Claims are final and binding.
If the Plan Administrator is unable to reach a decision with respect to a Claim because of unresolved issues or missing information, the Plan Administrator will notify you that it is unable to reach a decision, provide you with the reason it is unable to reach a decision, identify the additional information it needs (if any) for it to make a decision, and generally explain the standards on which it makes Claim determinations. You will be given forty-five (45) days following your receipt of such notice to resolve such issues or to provide any such additional information to the Plan Administrator. The Claims Determination Period will be tolled during the period of time from the date the Plan Administrator mails you such notice to the date the Plan Administrator receives your response.  If you fail to respond to the request within the forty-five (45)-day period, the Plan Administrator will make a determination with respect to such Claim based on the circumstances surrounding unresolved issues and information available to the Plan Administrator at that time.
If the Plan Administrator denies any part, or all, of your Claim, you will be notified in writing of such determination and the notification will state the reason for the denial and the VERO provisions on which the denial is based.  You shall be entitled to receive, upon written request, reasonable access to and copies of all documents, records and other information relevant to such Claim. The notice of denial will also provide a description of any additional information or material necessary for you to perfect the Claim, an explanation as to why the additional information or material is required and an explanation of the Claim appeal procedure and the time limits for filing an appeal.  Such notice of denial or any other notice as referred to in this procedure shall be deemed duly given 

9

when addressed to you and mailed by first class mail to the address last appearing in the records of the Appeals Committee.
You shall have sixty (60) days from the date of the Plan Administrator’s determination to file an appeal.  You will have the opportunity to submit written comments, documents or other information in support of the Claim as part of the appeal.  The appeal must be mailed to the FirstEnergy Employee Benefits Claims and Appeals Committee, 76 South Main Street, Akron, Ohio 44308.
(ii)    Appeals Committee.  The Appeals Committee shall consist of at least three (3) employees of the Company who shall be appointed by the Company. The Appeals Committee will meet monthly to review and render a decision on any appeal of the Plan Administrator’s determination on a Claim.  In making its decision, the Appeals Committee will have full power and authority to interpret the VERO, to resolve ambiguities, inconsistencies and omissions, to determine any question of fact, to determine the right to VERO Benefits, and the amount of VERO Benefits, if any, payable to the claimant in accordance with the provisions of the VERO.  The Appeals Committee will not defer to the Plan Administrator’s determination but will independently review the Claim and consider all comments, documents and other information submitted as part of the appeal in making its decision.  In addition, the Plan Administrator shall not participate in the decision on the appeal.
The Appeals Committee will review and make its decision on the appeal of a Claim denial at its next regularly scheduled meeting following the date the appeal is received.  However, if the appeal is received less than thirty (30) days before its next regularly scheduled meeting, the Appeals Committee may defer its review and decision to the second regularly scheduled meeting following the date the appeal of the Claim denial is received.  Extenuating circumstances may permit an extension to the third regularly scheduled meeting from the date the appeal is received.  If such an extension is required, the claimant will be notified in writing of the extension, the extenuating circumstances requiring the extension and the date by which the Appeals Committee expects to make its decision.
You will be notified in writing of the Appeals Committee’s decision within five (5) workdays of the decision being made.  If the Appeals Committee’s decision is to uphold the denial of the Claim, the notification will include the reason for the denial and the VERO provisions on which the denial is based.  You shall be entitled to receive, upon written request, reasonable access to and copies of all documents, records and other information on which the decision was based.  The decision will further provide a notice of your right to appeal the decision of the Appeals Committee in accordance with ERISA and the time limits for filing an appeal.
You must exhaust the VERO’s appeals process prior to taking any action at law, in equity, pursuant to arbitration or otherwise with respect to your Claim.  You shall have one hundred and eighty (180) 

10

days from the date of the decision of the Appeals Committee to file an appeal action under ERISA.  No legal action may be commenced against the VERO, the Plan Administrator or the Appeals Committee more than one hundred and eighty (180) days after the Appeals Committee’s decision has been made with respect to all or any portion of the Claim.
10.    OTHER VERO INFORMATION
(a)    Benefits Rights 
The VERO may be amended or terminated by the Company, at any time and for any reason; provided, that, no such amendment or termination will adversely affect the rights of any person who is eligible for, and has elected to receive, VERO Benefits, and had agreed to voluntarily terminate his or her employment due to retirement.  The Company is voluntarily offering and providing VERO Benefits; it is under no legal obligations to provide or offer VERO Benefits other than as set forth in the VERO. 
This summary describes the VERO Benefits available to eligible employees.  When it deems it is in the Company’s best interest to do so, the Company may authorize the Plan Administrator to offer additional voluntary enhanced retirement benefits not contained in the VERO to an eligible employee on a case-by-case basis.
(b)    Source of Benefits 
The VERO is unfunded.  The Cash Severance Payment, the portion of the continuation of health benefits for the Benefits Continuation Period paid by the Company and the PTO Payment (excluding frozen and banked vacation which shall be paid by FirstEnergy Corp.) shall be paid directly by the Company from its general assets. Temporary Pension Enhancement Payments shall be paid from the FirstEnergy System Master Retirement Trust.
(c)    Participant’s Rights 
As a participant in the VERO, you are entitled to certain rights and protections under ERISA.  ERISA provides that all plan participants shall be entitled to:
Receive Information about the VERO and VERO Benefits
		
	•
	Examine, without charge, at the Plan Administrator’s office or local Human Resources office, all documents governing the plan, a copy of the latest annual report filed with the Department of Labor (if it is required that such a report be filed) and the plan description.

		
	•
	Obtain copies of documents governing the operation of the VERO, the latest annual report (if it is required that such a report be filed) and an updated summary plan description or other 

11

VERO information upon written request to the Plan Administrator.  The Plan Administrator may make a reasonable charge for the copies.
Prudent Actions by Plan Fiduciaries
		
	•
	In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan.  The people who operate the VERO, called “fiduciaries” of the VERO, have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries.  No one - the Company or any other person - may discriminate against you in any way to prevent you from obtaining benefits or exercising your rights under ERISA.

Enforce Your Rights
		
	•
	If your Claim is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

		
	•
	Under ERISA, there are steps you can take to enforce your rights.  For instance, if you request a copy of plan documents or the latest annual report from the VERO and do not receive them within thirty (30) days, you may file suit in federal court.  In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator.  If you have a Claim which is denied or ignored, in whole or in part, you may file suit in a state or federal court.  If it should happen that plan fiduciaries misuse the VERO’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in federal court.  The court will decide who should pay court costs and legal fees.  If you are successful, the court may order the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds your Claim is frivolous.

Assistance with Your Questions
		
	•
	If you have any questions about the VERO, you should contact the Plan Administrator at the address or phone number listed below.  If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210.  You may also 

12

obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.
(d)    Section 409A Compliance 
It is the intention and purpose of the Company that the VERO shall be, at all relevant times, in compliance with (or exempt from) Section 409A of the Code (“Section 409A”) and all other applicable laws, and the VERO shall be so interpreted and administered.  In addition to the general amendment rights of the Company with respect to the VERO, the Company specifically retains the unilateral right (but not the obligation) to make, prospectively or retroactively, any amendment to the VERO or any related document, as it deems necessary or desirable, to more fully address issues in connection with compliance with (or exemption from) Section 409A and such other laws.  In no event, however, shall this section or any other provisions of the VERO be construed to require the Company to provide any gross-up for the tax consequences of any provisions of, or payments under, the VERO and the Company shall have no responsibility for tax or legal consequences to you (or your beneficiaries) resulting from the terms or operation of the VERO.  All references to “termination of employment,” “termination” or a “separation” in the VERO shall refer to events which constitute a “separation from service” as defined under Section 409A.
If any VERO Benefits are subject to, and not exempt from, Section 409A, then the following rules apply:
		
	•
	If you are a “specified employee” as determined under the Company’s policy for determining specified employees on the date of your separation from service, VERO Benefits that are subject to, and not exempt from, Section 409A that would otherwise be paid or provided during the first six (6) months following such separation from service, shall be accumulated during that six (6)-month period and paid or provided (together with interest at the applicable federal rate under Section 7872(f)(2)(A) of the Code) on the first business day following the six (6) month anniversary of such separation from service.  Notwithstanding the foregoing, VERO Benefits delayed pursuant to this paragraph shall commence as soon as practicable following the date of your death prior to the end of the six (6) month period, but in no event later than ninety (90) days following the date of death.

		
	•
	Any reimbursement of expenses or in-kind VERO Benefits subject to, and not exempt from, Section 409A, shall be subject to the following additional rules: (i) any reimbursement of eligible expenses shall be paid as they are incurred (but not prior to the end of the six (6)-month delay period applicable to “specified employees” as set forth above) and shall always be paid on or before the last day of your tax year following the tax year in which the expenses were incurred; provided, that, you first provide documentation of such expenses in reasonable detail not later than sixty (60) days following the end of the calendar year in which the eligible expenses were incurred; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, 

13

during any calendar year shall not affect the amount of expenses eligible for reimbursement, or in-kind benefits to be provided, during any other calendar year; and (iii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.
		
	•
	Notwithstanding any other provision of the VERO, you must execute (and not revoke) a Release as provided in Section 4 herein for payment of the VERO Benefits.  Any VERO Benefit subject to Section 409A will be forfeited if the Release is not executed (or is revoked after execution) as provided in Section 4 herein.

		
	•
	No payments made by the Company through any other plan, program, policy or arrangement shall be a substitute for the payment of any VERO Benefits that is subject to Section 409A.

		
	•
	Each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A.

		
	(e)
	Summary of Plan Information 

	
		
	Plan Sponsor:
	FirstEnergy Solutions Corp. 
341 White Pond Drive
Building B3
Akron, OH 44320
1-888-254-4769
EIN: 31-1560186

	Name of Plan:
	FirstEnergy Solutions Corp. Voluntary Enhanced 
Retirement Option 

	Plan Number:
	 

	Plan Effective Date:
	Plan is effective as of January 2, 2019

	Plan Year:
	January 2 to December 31

	Plan Administrator:
	FirstEnergy Solutions Corp., as Plan Administrator
Voluntary Enhanced Retirement Option
c/o Michelle Imobersteg
341 White Pond Dr., Bldg A3
Akron, OH 44320
330-436-1488

	Agent for Service of Legal Process:
	FirstEnergy Solutions Corp. 
c/o CT Corporation System
400 Easton Commons Way
Suite 125 
Columbus, Ohio 43219

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