FORM OF ADMINISTRATION AGREEMENT between VERIZON MASTER TRUST, as Trust, and CELLCO PARTNERSHIP d/b/a VERIZON WIRELESS, as Administrator Dated as of [___], 20[_]
Exhibit 10.5
FORM OF ADMINISTRATION AGREEMENT
between
VERIZON MASTER TRUST,
as Trust,
and
CELLCO PARTNERSHIP d/b/a VERIZON WIRELESS,
as Administrator
Dated as of [___], 20[_]
TABLE OF CONTENTS
Page
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ARTICLE I USAGE AND DEFINITIONS
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1
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Section 1.1.
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Usage and Definitions
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1
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ARTICLE II ADMINISTRATION OF TRUST
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1
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Section 2.1.
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Engagement of Administrator
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1
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Section 2.2.
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Administrator’s Rights and Obligations.
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1
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Section 2.3.
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Limits on Administrator’s Rights and Obligations.
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3
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Section 2.4.
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Power of Attorney
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3
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Section 2.5.
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Access to Trust Records
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4
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Section 2.6.
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Review of Administrator’s Records
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4
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Section 2.7.
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Updating List of Responsible Persons
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4
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Section 2.8.
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Administrator’s Fees and Expenses
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4
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Section 2.9.
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Form 10-Ds; Investor Communications.
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4
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Section 2.10.
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Benchmark Replacement Conforming Changes
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7
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Section 2.11.
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Additional Requirements of the Administrator
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7
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ARTICLE III ADMINISTRATOR
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8
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Section 3.1.
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Administrator’s Representations and Warranties
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8
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Section 3.2.
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Liability of Administrator.
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10
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Section 3.3.
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Resignation and Removal of Administrator.
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11
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Section 3.4.
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Successor Administrator.
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12
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Section 3.5.
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Merger, Consolidation, Succession or Assignment
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12
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Section 3.6.
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Delegation and Contracting
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12
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ARTICLE IV OTHER AGREEMENTS
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13
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Section 4.1.
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Independence of Administrator; No Joint Venture
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13
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Section 4.2.
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Transactions with Affiliates; Other Transactions
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13
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Section 4.3.
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No Effect on Cellco in Other Capacities
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13
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Section 4.4.
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No Petition
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13
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Section 4.5.
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Limitation of Liability of Owner Trustee and Master Collateral Agent.
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13
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Section 4.6.
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Termination
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14
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ARTICLE V MISCELLANEOUS
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14
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TABLE OF CONTENTS
(continued)
Page
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Section 5.1.
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Amendments.
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14
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Section 5.2.
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Assignment; Benefit of Agreement; Third-Party Beneficiary.
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15
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Section 5.3.
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Notices.
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16
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Section 5.4.
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GOVERNING LAW
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16
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Section 5.5.
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Submission to Jurisdiction
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16
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Section 5.6.
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WAIVER OF JURY TRIAL
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16
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Section 5.7.
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No Waiver; Remedies
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17
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Section 5.8.
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Severability
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17
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Section 5.9.
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Headings
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17
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Section 5.10.
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Counterparts
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17
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Section 5.11.
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Electronic Signatures
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17
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ADMINISTRATION AGREEMENT, dated as of [___], 20[_] (this “Agreement”), between VERIZON MASTER TRUST, a Delaware statutory
trust (the “Trust”), and CELLCO PARTNERSHIP d/b/a VERIZON WIRELESS, a Delaware general partnership (“Cellco” or, in its capacity as administrator, the “Administrator”).
BACKGROUND
Cellco is the sponsor of certain financing transactions for which the Trust was formed under the Trust Agreement and will make
borrowings under Loans or issue Notes, in each case, under the Transaction Documents and certain other Series Related Documents.
The Trust and the Owner Trustee have obligations under the Transaction Documents and other Series Related Documents and intend that
Cellco administer the activities of the Trust and perform certain obligations of the Trust and the Owner Trustee under the Transaction Documents and other Series Related Documents.
The parties agree as follows:
ARTICLE I
USAGE AND DEFINITIONS
USAGE AND DEFINITIONS
Section 1.1. Usage and Definitions.
Capitalized terms used in this Agreement and not otherwise defined herein are defined in Appendix A to the Master Collateral Agency and Intercreditor Agreement, dated as of [___], 20[_], among the Trust, Cellco, as servicer (in such capacity, the “Servicer”),
[__________], as master collateral agent (the “Master Collateral Agent”) and the Creditor Representatives from time to time party thereto (the “Creditor Representatives”) (the “Master Collateral Agreement”). Appendix A also
contains usage rules that apply to this Agreement. Appendix A is incorporated by reference into this Agreement.
ARTICLE II
ADMINISTRATION OF TRUST
ADMINISTRATION OF TRUST
Section 2.1. Engagement of Administrator. The Trust and the
Owner Trustee engage the Administrator to perform the obligations of the Trust and the Owner Trustee under the Transaction Documents and the other Series Related Documents as described in this Agreement, and the Administrator accepts the
engagement.
Section 2.2. Administrator’s Rights and Obligations.
(a) Rights and Obligations under
Transaction Documents and Other Series Related Documents. The Administrator will perform the obligations of the Trust and the Owner Trustee (in its capacity as Owner Trustee under the Trust Agreement) and take all action that the Trust and
the Owner Trustee are required to take under the Transaction Documents and the other Series Related Documents, except for the Trust’s obligations to make payments on the Credit Extensions. In addition, the Administrator will perform the
obligations of, and may exercise any rights given to, the Administrator in the Transaction Documents and the other Series Related Documents as if it were a party to the Transaction Documents or other Series Related Documents, as applicable, in its
capacity as Administrator, including, but not limited to, selecting
the Receivables to be acquired by the Depositor and the Trust and the Receivables to be designated to a Group, in each case, under the Transaction
Documents.
(b) Consulting and Monitoring. The
Administrator will consult with the Owner Trustee about performing the Trust’s obligations under the Transaction Documents and other Series Related Documents. The Administrator will monitor the Trust’s performance and will advise the Owner Trustee
when action is necessary to perform the Trust’s obligations under the Transaction Documents and the other Series Related Documents to comply with the Transaction Documents and the other Series Related Documents.
(c) Preparing and Executing Documents.
The Administrator will prepare, or cause to be prepared, all documents that the Trust is required to prepare, file or deliver under the Transaction Documents and the other Series Related Documents, including all financing and continuation
statements, and amendments to such statements, required to be filed pursuant to Section 5.1(b) of the Master Collateral Agreement. The Administrator will cause the documents to be executed by the Trust or may execute the documents as Administrator
on behalf of the Trust. Upon preparation or execution of the documents by the Trust or by the Administrator on behalf of the Trust, the Administrator will file or deliver the documents as required by the Transaction Documents and the other Series
Related Documents. The Administrator will prepare, or cause to be prepared and, after execution by the Trust, file with the Commission any documents required to be prepared and filed on a periodic basis with the Commission pursuant to the Master
Collateral Agreement or any Trust Financing Agreement.
(d) Notices to Rating Agencies and Other
Parties. If Cellco is the Administrator, the Administrator will prepare and give all notices to the Rating Agencies (if any Credit Extensions are then rated) and other Parties required to be given by the Trust or the Administrator under the
Transaction Documents, including all notices required to be delivered under Section 5.7 and Section 5.9 of the Master Collateral Agreement. If Cellco is no longer the Administrator, the Administrator will prepare any Rating Agency notices, if any,
provide them to the Sponsor and direct the Sponsor to give them to the Rating Agencies, if any.
(e) Payment of Fees and Expenses. The
Administrator shall, on behalf of the Trust, pay fees, expenses and indemnities of the Master Collateral Agent, the Owner Trustee, the Asset Representations Reviewer, each Creditor Representative of an Indenture Series and any Letter of Credit
Provider, in each case, to the extent applicable, due and payable under the Transaction Documents and the other Series Related Documents if such amounts are not otherwise paid by the Trust after all amounts distributable pursuant to the Trust
Financing Agreements on each Payment Date have been so distributed; provided that the Master Collateral Agent, the Owner Trustee, the Asset Representations Reviewer, each Creditor Representative of an
Indenture Series and/or any Letter of Credit Provider, as applicable, shall promptly reimburse the Administrator for any such amounts to the extent the Master Collateral Agent, the Owner Trustee, the Asset Representations Reviewer, each Creditor
Representative of an Indenture Series and/or any Letter of Credit Provider, as applicable, subsequently receives payment or reimbursement in respect thereof from the Trust. To the extent that the Administrator, on behalf
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of the Trust, pays any fees of the Master Collateral Agent, the Owner Trustee, the Asset Representations Reviewer, each Creditor Representative of an
Indenture Series and/or any Letter of Credit Provider on a Closing Date, the Administrator will be reimbursed for such amounts in accordance with the relevant Trust Financing Agreement.
Section 2.3. Limits on Administrator’s Rights and Obligations.
(a) Non-Ministerial Matters. The
Administrator will not take any action relating to a matter that, in its reasonable judgment, is a non-ministerial matter unless, at least thirty (30) days before taking the action, the Administrator has notified the Trust of the proposed action
and the Trust has not directed the Administrator not to take the action and/or provided an alternative direction before the thirtieth (30th) day after receipt of the notice. For purposes of this Agreement, “non-ministerial matters” includes:
(i) starting or pursuing
any Proceeding by the Trust and the settlement of any Proceeding brought by or against the Trust;
(ii) appointing or engaging
a successor Master Collateral Agent under the Master Collateral Agreement or consenting to the assignment by the Master Collateral Agent of its obligations under the Master Collateral Agreement;
(iii) appointing or
engaging a successor Owner Trustee under the Trust Agreement or consenting to the assignment by the Owner Trustee of its obligations under the Trust Agreement; and
(iv) appointing or engaging
a successor Indenture Trustee under an Indenture for an Indenture Series or consenting to the assignment by any Indenture Trustee of its obligations under the applicable Indenture.
(b) Prohibited Actions. The
Administrator will not be obligated to, and will not (i) make any payments to the Creditors under the Transaction Documents or any other Series Related Document, (ii) sell the Collateral under Section 6.1 of the Master Collateral Agreement or (iii)
take any other action that the Owner Trustee or the Master Collateral Agent directs the Administrator not to take on its behalf or that would result in a breach by the Trust under a Transaction Document or any other Series Related Document.
(c) Obligations to be Performed by Owner
Trustee. The Administrator will have no responsibility or obligation to perform the obligations of the Owner Trustee relating to reacquisition or acquisition demands under Section 5.12 of the Trust Agreement or relating to Regulation AB
disclosure under Section 6.7 of the Trust Agreement.
Section 2.4. Power of Attorney. The
Trust appoints the Administrator as the Trust’s attorney-in-fact, with full power of substitution to exercise all rights of the Trust under the Transaction Documents and the other Series Related Documents. This power of attorney, and all
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authority given, under this Section 2.4 is revocable and is given solely to facilitate the performance of the Administrator’s obligations under this
Agreement and may only be used by the Administrator consistent with this Agreement. On request of the Administrator, the Trust will furnish the Administrator with written powers of attorney and other documents to enable the Administrator to perform
its obligations under this Agreement.
Section 2.5. Access to Trust Records.
The Trust will maintain records and documents relating to its performance under this Agreement according to its customary business practices. Upon reasonable request not more than once during any calendar year, and with reasonable notice, the
Trust will give the Administrator (or its representatives) access to the records and documents to conduct a review of the Trust. Any access or review will be conducted at the Trust’s offices during its normal business hours at a time reasonably
convenient to the Trust and in a manner that will minimize disruption to its business operations. Any access or review will be subject to the Trust’s security, confidentiality and privacy policies and any legal, regulatory and data protection
policies.
Section 2.6. Review of Administrator’s
Records. The Administrator will maintain records and documents relating to its performance under this Agreement according to its customary business practices. Upon reasonable request not more than once during any calendar year, and with
reasonable notice, the Administrator will give the Trust, the Depositor, the Parent Support Provider, the Owner Trustee and the Creditor Representatives (or their respective representatives) access to the records and documents to conduct a review
of the Administrator’s performance under this Agreement. Any access or review will be conducted by all parties at the same time at the Administrator’s offices during its normal business hours at a time reasonably convenient to the Administrator
and in a manner that will minimize disruption to its business operations. Any access or review will be subject to the Administrator’s security, confidentiality and privacy policies and any regulatory, legal and data protection policies.
Notwithstanding the foregoing, the permissive right of a Creditor Representative to access or review any records of the Administrator shall not be deemed to be an obligation of such Creditor Representative to do so.
Section 2.7. Updating List of Responsible
Persons. On or before a Closing Date, the Administrator will notify the Owner Trustee, the Master Collateral Agent, each Indenture Trustee, the Servicer and the Depositor of each Person who is a Responsible Person for the Administrator. The
Administrator may change such Persons at any time by notifying the Owner Trustee, the Master Collateral Agent, each Indenture Trustee, the Servicer and the Depositor.
Section 2.8. Administrator’s Fees and
Expenses. The Servicer will pay the Administrator as compensation for performing its obligations under this Agreement a fee separately agreed to by the Servicer and the Administrator. The Administrator will be responsible for its costs and
expenses in performing its obligations under this Agreement.
Section 2.9. Form 10-Ds; Investor
Communications.
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(a) Form 10-Ds.
(i) If the Administrator
receives a notice from the Servicer pursuant to Section 11.1(a) of the Transfer and Servicing Agreement regarding the occurrence of a Group Delinquency Trigger with respect to a Collection Period, and describing the related rights of Public
Noteholders of that Group, the Administrator shall include the contents of such notice in the Form 10-D for such Collection Period filed by the Administrator pursuant to Section 2.2(c) hereof and shall notify the Master Collateral Agent of the date
of the filing of such Form 10-D. If the Administrator receives a notice from the Master Collateral Agent pursuant to Section 12.1 of the Master Collateral Agreement regarding the method by which Public Noteholders of that Group and Note Owners of
that Group may contact the Master Collateral Agent in order to request a vote on whether to cause the related Group 60-Day Delinquent Receivables to be reviewed by the Asset Representations Reviewer pursuant to the terms of the Asset
Representations Review Agreement, the Administrator shall include the contents of such notice in the Form 10-D for such Collection Period filed by the Administrator pursuant to Section 2.2(c) hereof.
(ii) If the Administrator
receives a notice from the Master Collateral Agent pursuant to Section 12.1 of the Master Collateral Agreement indicating that sufficient Requesting Noteholders of a Group have properly and timely requested a vote to cause the related Group 60-Day
Delinquent Receivables to be reviewed by the Asset Representations Reviewer pursuant to the terms of the Asset Representations Review Agreement, the Administrator shall: (1) promptly set a deadline for the receipt of votes of Public Noteholders of
that Group on that matter, which shall be a date not earlier than one-hundred fifty (150) days after the date on which the Form 10-D describing the occurrence of the related Group Delinquency Trigger shall have been filed by the Administrator
pursuant to the terms of Section 2.2(c) hereof; (2) promptly prepare and send to the Master Collateral Agent, each Creditor Representative for any Series of Publicly Registered Notes of the related Group and each Public Noteholder of the related
Group (and to each applicable Clearing Agency for distribution to Note Owners of each Series of the related Group in accordance with the rules of such Clearing Agency) a notice (A) stating that there will be a vote of Public Noteholders of that
Group pursuant to Section 12.2 of the Master Collateral Agreement on whether to initiate an Asset Representations Review of the related Group 60-Day Delinquent Receivables by the Asset Representations Reviewer pursuant to the Asset Representations
Review Agreement, and (B) describing those procedures, including the means by which the Public Noteholders of such Group may make their votes known to the Master Collateral Agent and the related voting deadline that will be used to calculate
whether the requisite amount of Public Noteholders of that Group have cast affirmative votes to direct the Master Collateral Agent to notify the Asset Representations Reviewer to commence an Asset Representations Review; and (3) include the
contents of such notice in the next Form 10-D to be filed by the Administrator pursuant to Section 2.2(c) hereof; provided,
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that if the notice is received by the Administrator later than two (2) Business Days before the filing deadline for that Form 10-D,
the contents of such notice will be included in the next succeeding Form 10-D to be filed by the Administrator pursuant to Section 2.2(c) hereof.
(iii) If the Administrator
receives a notice from the Master Collateral Agent pursuant to Section 12.2 of the Master Collateral Agreement indicating that sufficient Public Noteholders of that Group have voted to cause the related Group 60-Day Delinquent Receivables to be
reviewed by the Asset Representations Reviewer pursuant to the terms of the Asset Representations Review Agreement, the Administrator shall include the contents of such notice in the next Form 10-D to be filed by the Administrator pursuant to
Section 2.2(c) hereof; provided, that if the notice is received by the Administrator later than two (2) Business Days before the filing deadline for that Form 10-D, the contents of such notice will be included in the next succeeding Form 10-D to be
filed by the Administrator pursuant to Section 2.2(c) hereof.
(iv) After receipt by the
Administrator of a Review Report, the Administrator will include a summary of such report in the next Form 10-D to be filed by the Administrator pursuant to Section 2.2(c) hereof; provided, that if the report is received by the Administrator later
than two (2) Business Days before the filing deadline for that Form 10-D, the summary will be included in the next succeeding Form 10-D to be filed by the Administrator pursuant to Section 2.2(c) hereof. The Form 10-D filed pursuant to this clause
(iv) will also specify the means by which Public Noteholders of that Group and Verified Note Owners may notify their Creditor Representative, the Master Collateral Agent, the related Originator and the Servicer in writing that it considers any
non-compliance of the Eligibility Representation made with respect to Receivables designated to the related Group to be a breach of the applicable Receivables Transfer Agreement, or request in writing that a Group 60-Day Delinquent Receivable be
reacquired or acquired, as applicable.
(v) In the event of any
resignation, removal, replacement or substitution of the Asset Representations Reviewer, or the appointment of a new Asset Representations Reviewer, pursuant to the terms of the Asset Representations Review Agreement, the Administrator will report
the occurrence of such event, together with a description of the circumstances surrounding the change and, if applicable, information regarding the new Asset Representations Reviewer, in the Form 10-D filed by the Administrator pursuant to Section
2.2(c) hereof for the Collection Period in which such change occurs.
(vi) If the Administrator
receives notice and information from the Master Collateral Agent pursuant to Section 7.11(b) of the Master Collateral Agreement, from any Indenture Trustee pursuant to Section [6.6(e)] of the Indenture related to an Indenture Series or from the
Owner Trustee pursuant to Section 6.7 of the Trust Agreement, the Administrator will include such information in the next Form 10-D to be filed by the Administrator pursuant to Section 2.2(c) hereof; provided, that if the report is received by
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the Administrator later than two (2) Business Days before the filing deadline for that Form 10-D, the summary will be included in the
next succeeding Form 10-D to be filed by the Administrator pursuant to Section 2.2(c) hereof.
(b) Investor Communications. If the
Administrator receives, during any Collection Period, a request from a Noteholder or Verified Note Owner of any Publicly Registered Credit Extensions to communicate with other Noteholders or Note Owners of any Publicly Registered Credit Extensions
regarding the exercise of rights under the terms of the Transaction Documents and any Series Related Documents, the Administrator will include in the Form 10-D for such Collection Period the following information, to the extent provided by such
Noteholder or Verified Note Owner in its request: (i) the name of the Noteholder or Verified Note Owner making the request, (ii) the date the request was received; (iii) a statement that the Administrator has received the request from that
Noteholder or Verified Note Owner that it is interested in communicating with other Noteholders or Note Owners of any Publicly Registered Credit Extensions with regard to the possible exercise of rights under the Transaction Documents and the
applicable Series Related Documents; and (iv) a description of the method other Noteholders or Note Owners of any Publicly Registered Credit Extensions may use to contact the requesting Noteholder or Verified Note Owner. The Administrator is not
required to include any additional information regarding the Noteholder or Verified Note Owner and its request in the Form 10-D, and is required to disclose a Noteholder’s or Verified Note Owner’s request only where the communication relates to the
exercise by a Noteholder or Verified Note Owner of its rights under the Transaction Documents and applicable Series Related Documents. The Administrator will be responsible for the expenses of administering the investor communications provisions
set forth in this Section 2.9, which will be compensated by means of the fee payable to it by the Servicer, as described in Section 2.8.
Section 2.10. Benchmark Replacement
Conforming Changes. To the extent set forth in and required by the terms of any Trust Financing Agreement, the Administrator shall use its commercially reasonable efforts to determine if and when a “Benchmark Transition Event” (as defined in
the applicable Trust Financing Agreement) has occurred, and if it makes such a determination, shall have the right to make “Benchmark Replacement Conforming Changes” (as defined in the applicable Trust Financing Agreement).
Section 2.11. Additional Requirements of
the Administrator.
(a) Reporting Requirements.
(i) If so requested by the
Trust for the purpose of satisfying its reporting obligation under the Exchange Act with respect to the Publicly Registered Notes of any Indenture Series, the Administrator shall (x) notify the Trust in writing of any material litigation or
governmental proceedings pending against the Administrator and (y) provide to the Trust a description of such proceedings.
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(ii) As a condition to the
succession to the Administrator by any Person as permitted by Article III hereof, the Administrator shall provide to the Trust, at least ten (10) Business Days prior to the effective date of such succession or appointment, (x) written notice to the
Trust of such succession or appointment and (y) in writing all information in order to comply with its reporting obligation under Item 6.02 of Form 8-K with respect to the Publicly Registered Notes of any Indenture Series.
(iii) In addition to such
information as the Administrator is obligated to provide pursuant to other provisions of this Agreement, the Administrator shall provide to the Trust and the Servicer such information regarding the performance or servicing of the Receivables
designated to each Group as is reasonably required by the Servicer to facilitate preparation of distribution reports in accordance with Item 1121 of Regulation AB.
(b) Intent of the Parties; Reasonableness.
The Trust and the Administrator acknowledge and agree that the purpose of this Section 2.11 is to facilitate compliance by the Trust with the provisions of Regulation AB and related rules and regulations of the Commission. Neither the Trust nor
the Administrator shall exercise its right to request delivery of information or other performance under these provisions other than in good faith, or for purposes other than compliance with the Securities Act, the Exchange Act and the rules and
regulations of the Commission thereunder (or the provision in a private offering of disclosure comparable to that required under the Securities Act). The Administrator acknowledges that interpretations of the requirements of Regulation AB may
change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to comply with requests made by the
Master Collateral Agent, any Indenture Trustee, the Servicer or any other party to the Transaction Documents in good faith for delivery of information under these provisions on the basis of evolving interpretations of Regulation AB. In connection
therewith, the Administrator shall cooperate fully with the Trust to deliver to the Trust (including any of its assignees or designees), any and all statements, reports, certifications, records and any other information necessary in the good faith
determination of the Trust, to permit the Trust to comply with the provisions of Regulation AB. The Trust (including any of its assignees or designees) shall cooperate with the Administrator by providing timely notice of requests for information
under these provisions and by reasonably limiting such requests to information required, in the Trust’s reasonable judgment, to comply with Regulation AB.
ARTICLE III
ADMINISTRATOR
ADMINISTRATOR
Section 3.1. Administrator’s
Representations and Warranties. The Administrator represents and warrants to the Trust, the Owner Trustee and the Master Collateral Agent as of the date of this Agreement and represents and warrants to the Trust, the Owner Trustee, the
Master Collateral Agent and the Indenture Trustee for the related Indenture Series as of the Closing Date for each Series:
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(a) Organization and Good Standing.
The Administrator is a validly existing partnership in good standing under the laws of the State of Delaware and has full power and authority to own its properties and conduct its business as presently owned or conducted, and to execute, deliver
and perform its obligations under this Agreement and each other Transaction Document and other Series Related Document to which it is a party.
(b) Due Qualification. The
Administrator is duly qualified to do business, is in good standing as a foreign entity (or is exempt from such requirements) and has obtained all necessary licenses and approvals in each jurisdiction in which the conduct of its business requires
such qualification, licenses or approvals, except where the failure to so qualify or obtain licenses or approvals would not reasonably be expected to have a Material Adverse Effect.
(c) Due Authorization. The execution,
delivery, and performance of this Agreement and each other Transaction Document and other Series Related Document to which it is a party, have been duly authorized by the Administrator by all necessary partnership action on the part of the
Administrator.
(d) No Proceedings. There are no
actions, suits, investigations or other proceedings pending, or to its knowledge threatened, against the Administrator or any of its properties: (i) asserting the invalidity of this Agreement; (ii) seeking to prevent the consummation of any of the
transactions contemplated by this Agreement; or (iii) seeking any determination or ruling that might have a Material Adverse Effect on the performance by the Administrator of its obligations under, or the validity or enforceability of, this
Agreement.
(e) All Consents. All authorizations,
consents, orders or approvals of or registrations or declarations with any Governmental Authority, if any, required to be obtained, effected or given to it in connection with the execution and delivery of this Agreement and each other Transaction
Document and other Series Related Document to which it is a party and the performance of the transactions contemplated by this Agreement or any other Transaction Document or other Series Related Document by the Administrator, in each case, have
been duly obtained, effected or given and are in full force and effect, except for those which the failure to obtain would not reasonably be expected to have a Material Adverse Effect.
(f) Binding Obligation. This Agreement
and each other Transaction Document and other Series Related Document to which it is a party constitutes, when duly executed and delivered by each other party hereto and thereto, a legal, valid and binding obligation of the Administrator,
enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship or other similar Laws affecting creditors’ rights
generally or by general principles of equity.
(g) No Conflict. The execution and
delivery of this Agreement or any other Transaction Document or other Series Related Document to which it is a party by the Administrator, and the performance by it of the transactions contemplated by the Transaction
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Documents and the other Series Related Documents, and the fulfillment of the terms hereof and thereof applicable to the Administrator, (i) do not
contravene (A) the organizational documents of the Administrator, (B) any contractual restriction binding on or affecting it or its property, or (C) any order, writ, judgment, award, injunction or decree binding on or affecting it or its property,
except, in each case, where such contravention would not reasonably be expected to have a Material Adverse Effect and (ii) do not result in or require the creation of any Adverse Claim upon or with respect to any of its properties.
(h) No Violation. The execution and
delivery of this Agreement by the Administrator, the performance by the Administrator of the transactions contemplated by this Agreement or any other Transaction Document or other Series Related Document to which it is a party and the fulfillment
of the terms hereof and thereof applicable to the Administrator will not violate any Law applicable to the Administrator, except where such violation would not reasonably be expected to have a Material Adverse Effect.
Section 3.2. Liability of Administrator.
(a) Liability for Specific Obligations.
The Administrator will be liable only for its specific obligations under this Agreement. All other liability is expressly waived and released as a condition of, and consideration for, the execution of this Agreement by the Administrator. The
Administrator will be liable only for its own willful misconduct, bad faith or gross negligence in performing its obligations under this Agreement.
(b) No Liability of Others. The
Administrator’s obligations under this Agreement are corporate obligations. No Person will have recourse, directly or indirectly, against any member, manager, officer, director, employee or agent of the Administrator for the Administrator’s
obligations under this Agreement.
(c) Legal Proceedings. The
Administrator is not required to start, pursue or participate in any legal proceeding that is not incidental or related to its obligations under this Agreement and that in its opinion may result in liability or cause it to pay or risk funds or
incur financial liability. The Administrator may in its sole discretion start or pursue any legal proceeding to protect the interests of the Creditors or the Depositor under the Transaction Documents and the Series Related Documents. The
Administrator will be responsible for the fees and expenses of legal counsel and any liability resulting from the legal proceeding.
(d) Force Majeure. The Administrator
will not be responsible or liable for any failure or delay in performing its obligations under this Agreement caused by, directly or indirectly, forces beyond its control, including strikes, work stoppages, acts of war, terrorism, civil or military
disturbances, fire, flood, earthquakes, storms, hurricanes or other natural disasters or failures of mechanical, electronic or communication systems; provided, however that this provision shall not limit the Owner Trustee’s right to remove the
Administrator for its failure to perform under this Agreement, as provided in Section 3.3(c). The Administrator will use
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commercially reasonable efforts to resume performance as soon as practicable in the circumstances.
(e) Reliance by Administrator. The
Administrator may rely in good faith on the advice of counsel or on any document believed to be genuine and to have been executed by the proper party for any matters under this Agreement.
Section 3.3. Resignation and Removal of
Administrator.
(a) No Resignation. Except as stated
in Section 3.3(b), the Administrator will not resign as Administrator unless it determines it is legally unable to perform its obligations under this Agreement. The Administrator will notify the Trust and the Owner Trustee of its resignation,
which notification shall include an Opinion of Counsel supporting its determination.
(b) Mandatory Resignation. On the
appointment or engagement of a Successor Servicer under the Transfer and Servicing Agreement (other than the Master Collateral Agent), the Administrator will immediately resign and the Successor Servicer will automatically become the successor
Administrator.
(c) Removal. If any of the following
events occurs and is continuing, the Owner Trustee, with the consent of Creditor Representatives representing Creditors holding at least sixty-six and two thirds percent (66 2/3%) of the Credit Exposure of each Trust Financing, may remove the
Administrator and terminate its rights and obligations under this Agreement by notifying the Administrator:
(i) the Administrator fails
to perform in any material respect its obligations under this Agreement, which failure has a material adverse effect on the Creditors and continues for ninety (90) days after the Administrator receives written notice of the failure from the Owner
Trustee, the Master Collateral Agent or the Majority Creditor Representatives; provided, however, that such period shall be extended for an additional period of ninety (90) days if such delay or failure of performance was caused by force majeure or
other similar occurrence, as further described in Section 3.2(d); or
(ii) an Insolvency Event of
the Administrator occurs.
(d) Notice of Resignation or Removal.
The Trust will notify the Depositor, the Owner Trustee, the Creditor Representatives and the Master Collateral Agent of any resignation or removal of the Administrator.
(e) Continue to Perform. No
resignation or removal of the Administrator will be effective, and the Administrator will continue to perform its obligations under this Agreement, until a successor Administrator has accepted its engagement according to Section 3.4(b).
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Section 3.4. Successor Administrator.
(a) Engagement of Successor Administrator.
Following the resignation or removal of the Administrator, the Trust, at the direction of the Majority Creditor Representatives, will engage a successor Administrator. No such direction from the Majority Creditor Representatives is required if the
successor Administrator is the Successor Servicer. If the Trust does not receive direction from the Majority Creditor Representatives within a reasonable period of time, the Trust may engage a successor Administrator.
(b) Effectiveness of Resignation or Removal.
No resignation or removal of the Administrator will be effective until (i) the successor Administrator has executed and delivered to the Trust an agreement accepting its engagement and agreeing to perform the obligations of the Administrator under
this Agreement or a new administration agreement on substantially the same terms as this Agreement, in a form acceptable to the Trust and (ii) the Rating Agency Condition is satisfied (if any Credit Extensions are then rated).
(c) Notice of Successor Administrator.
The Trust will notify the Depositor, the Owner Trustee, the Master Collateral Agent and the Creditor Representatives of the engagement of a successor Administrator.
(d) Transition to Successor Administrator.
If the Administrator resigns or is removed, the Administrator will cooperate with the Trust and take all actions reasonably requested to assist the Trust in making an orderly transition of the Administrator’s obligations to the successor
Administrator.
Section 3.5. Merger, Consolidation, Succession or Assignment.
Any Person (a) into which the Administrator is merged or consolidated, (b) resulting from a merger or consolidation to which the Administrator is a party, (c) succeeding to the Administrator’s business or (d) that is an Affiliate of the
Administrator to whom the Administrator has assigned this Agreement, will be the successor to the Administrator under this Agreement. Within fifteen (15) Business Days after the merger, consolidation, succession or assignment, such Person will (i)
execute an agreement to assume the Administrator’s obligations under this Agreement and each Transaction Document and other Series Related Document to which the Administrator is a party (unless the assumption happens by operation of Law), (ii)
deliver to the Trust, the Owner Trustee and the Master Collateral Agent an Officer’s Certificate and an Opinion of Counsel each stating that the merger, consolidation, succession or assignment and the assumption agreement comply with this Section
3.5 and (iii) notify the Rating Agencies (if any) of the merger, consolidation, succession or assignment.
Section 3.6. Delegation and Contracting. For as long as
Cellco is the Administrator, the Administrator may delegate to or contract with any Person to perform its obligations under this Agreement without the consent of the Trust. No delegation or contracting will relieve the Administrator of its
responsibilities, and the Administrator will remain responsible for those obligations. The Administrator will be responsible for the fees of its delegates and contractors.
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ARTICLE IV
OTHER AGREEMENTS
OTHER AGREEMENTS
Section 4.1. Independence of Administrator;
No Joint Venture. The Administrator will be an independent contractor and will not be subject to the supervision of the Trust or the Owner Trustee for the manner in which it performs its obligations under this Agreement. Except as expressly
authorized by the Transaction Documents and the other Series Related Documents, the Administrator will have no authority to act for or represent the Trust or the Owner Trustee and will not be considered an agent of the Trust or the Owner Trustee.
This Agreement will not make the Administrator and the Trust or the Owner Trustee members of a partnership, joint venture or other entity or impose any liability as such on any of them.
Section 4.2. Transactions with Affiliates;
Other Transactions. In performing its obligations under this Agreement, the Administrator may enter into transactions or deal with any of its Affiliates. This Agreement will not prevent the Administrator or its Affiliates from engaging in
other businesses or from acting in a similar capacity as an administrator for any other Person even though that Person may engage in activities similar to those of the Trust.
Section 4.3. No Effect on Cellco in Other
Capacities. This Agreement will not affect or limit any right or obligation Cellco may have in any other capacity.
Section 4.4. No Petition. Each party
agrees that, before the date that is one (1) year and one (1) day (or, if longer, any applicable preference period) after the payment in full of (a) all securities issued by the Depositor or by a trust for which the Depositor was depositor or (b)
the Credit Extensions, it will not start or pursue against, or join any other Person in starting or pursuing against, (i) the Depositor or (ii) the Trust, respectively, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other proceedings under any bankruptcy or similar Law. This Section 4.4 will survive termination of this Agreement.
Section 4.5. Limitation of Liability of
Owner Trustee and Master Collateral Agent.
(a) Owner Trustee. This Agreement has
been executed on behalf of the Trust by [____], not in its individual capacity but solely in its capacity as Owner Trustee of the Trust. In no event will [____] in its individual capacity or a holder of a beneficial interest in the Trust be liable
for the Trust’s obligations under this Agreement. For all purposes under this Agreement, the Owner Trustee will be subject to, and entitled to the benefits of, the Trust Agreement. Neither the Trust nor the Owner Trustee will have any liability
for any act or failure to act of the Administrator, including any action taken under a power of attorney given under this Agreement.
(b) Master Collateral Agent. This
Agreement has been signed by [____] not in its individual capacity but solely in its capacity as Master Collateral Agent. In performing its obligations under this Agreement, the Master Collateral Agent is subject to, and entitled to the benefits
of, the Master Collateral Agreement. Notwithstanding any provisions in this Agreement
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or any Transaction Document to the contrary, the Master Collateral Agent shall not be required to take any action which exposes the Master Collateral
Agent to personal liability or which is contrary to applicable Law. The Master Collateral Agent will not have any liability for any act or failure to act of the Servicer, the Custodian, the Marketing Agent, any Creditor or Creditor Representative,
the Administrator, the Trust or any other person or entity hereunder or under any Transaction Document.
Section 4.6. Termination. This
Agreement will terminate when the Trust is terminated under the Trust Agreement.
ARTICLE V
MISCELLANEOUS
MISCELLANEOUS
Section 5.1. Amendments.
(a) Amendments to Clarify and Correct
Errors and Defects. The Trust and the Administrator, without the consent of the Creditors, the Creditor Representatives, the Master Collateral Agent or any other Person, may amend this Agreement to cure any ambiguity, to correct an error or
to correct or supplement any provision of this Agreement that may be defective or inconsistent with the other terms of this Agreement.
(b) Other Amendments. Other than as
set forth in Section 5.1(c), the Trust and the Administrator, without the consent of the Creditors, the Creditor Representatives, the Master Collateral Agent (other than as set forth in Section 5.1(d)) or any other Person, may also amend this
Agreement for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Agreement or modifying in any manner the rights of the Creditors under this Agreement if either (x) the Trust or the
Administrator delivers an Officer’s Certificate to the Master Collateral Agent and the Owner Trustee stating that the Trust or the Administrator, as applicable, reasonably believes that the amendment will not have a material adverse effect on the
interest of any Creditor or (y) the Rating Agency Condition is satisfied with respect to such amendment (if any Credit Extensions are then rated).
(c) Amendments Requiring Consent of
Creditors. The Trust and the Administrator, with the consent of the Majority Creditor Representatives of each Group affected thereby, may, with prior written notice to the Rating Agencies (if any Credit Extensions of an affected Group are
then rated by such Rating Agencies), and the Master Collateral Agent, amend this Agreement 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 Creditors under this Agreement.
It shall not be necessary for the consent of the Creditors, any Creditor Representatives or the Master Collateral Agent pursuant to
this Section 5.1 to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. For the avoidance of doubt, any Creditor (acting through its Creditor
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Representative) consenting to any amendment shall be deemed to agree that such amendment does not have a material adverse effect on such Creditor and any
Creditor Representative consenting to any amendment shall be deemed to agree that such amendment does not have a material adverse effect on such Creditor Representative or its Creditors.
(d) Master Collateral Agent Consent.
The consent of the Master Collateral Agent will be required for any amendment under Section 5.1(b) or (c) that has a material adverse effect on the rights, duties, obligations, immunities or indemnities of the Master Collateral Agent.
(e) Notice of Amendments. Promptly
after the execution of any amendment to this Agreement, the Administrator will deliver a copy of the amendment to the Rating Agencies, if any.
(f) Opinions. Prior to the execution
of any amendment to this Agreement, the Owner Trustee and the Master Collateral Agent shall be entitled to receive and rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and the
Transaction Documents.
(g) Deemed Consent for All Creditors.
In the event that the Trust Financing Agreement for a Series enables a portion of the Creditors of that Series, or any Class of that Series, to exercise consent rights for such Series, the consent (or lack thereof) of such portion of the Creditors
shall be deemed to be the consent (or lack thereof) of all Creditors of such Series.
(h) Trust Financing Agreements. The
Trust Financing Agreement for any Series may have additional requirements or criteria to amend, modify or waive any provision of this Agreement and no amendment, modification or waiver of any provision of this Agreement shall occur unless each of
the additional criteria, if any, has been satisfied.
Section 5.2. Assignment; Benefit of
Agreement; Third-Party Beneficiary.
(a) Assignment. Except as stated in
Section 3.5, this Agreement may not be assigned by the Administrator without the consent of the Trust, the Master Collateral Agent and the Owner Trustee and satisfaction of the Rating Agency Condition (if any Credit Extensions are then rated).
(b) Benefit of Agreement; Third-Party
Beneficiary. This Agreement is for the benefit of and will be binding on the parties to this Agreement and their permitted successors and assigns. The Owner Trustee and the Master Collateral Agent will each be third-party beneficiaries of
this Agreement and may enforce this Agreement against the Administrator. No other Person will have any right or obligation under this Agreement.
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Section 5.3. Notices.
(a) Notices to Parties. All notices,
requests, directions, consents, waivers or other communications to or from the parties must be in writing and will be considered received by the recipient:
(i) for personally
delivered, express or certified mail or courier, when received;
(ii) for a fax, when
receipt is confirmed by telephone, reply email or reply fax from the recipient;
(iii) for an email, when
receipt is confirmed by telephone or reply email from the recipient; and
(iv) for an electronic
posting to a password-protected website to which the recipient has access, on delivery of an email (without the requirement of confirmation of receipt) stating that the electronic posting has been made.
(b) Notice Addresses. A notice,
request, direction, consent, waiver or other communication must be addressed to the recipient at its address stated in Schedule A to the Transfer and Servicing Agreement, which address the party may change by notifying the other party.
Section 5.4. GOVERNING
LAW. THIS AGREEMENT, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF LAW PROVISIONS THEREOF).
Section 5.5. Submission to Jurisdiction.
Each party submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for legal proceedings relating to this Agreement. Each
party irrevocably waives, to the fullest extent permitted by Law, any objection that it may now or in the future have to the venue of a proceeding brought in such a court and any claim that the proceeding was brought in an inconvenient forum.
Section 5.6. WAIVER
OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY MATTER
ARISING THEREUNDER WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.
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Section 5.7. 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 5.8. 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 5.9. Headings. The headings in
this Agreement are included for convenience and will not affect the meaning or interpretation of this Agreement.
Section 5.10. Counterparts. This
Agreement may be executed in multiple counterparts. Each counterpart will be an original and all counterparts will together be one document
Section 5.11. Electronic Signatures.
Each party agrees that this Agreement and any other documents to be delivered in connection herewith may be electronically signed, and that any electronic signatures appearing on this Agreement or such other documents are the same as handwritten
signatures for the purposes of validity, enforceability, and admissibility.
[Remainder of Page Left Blank]
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IN WITNESS WHEREOF, the undersigned has caused this Agreement to be executed by its duly authorized officer as of the date and year
first above written.
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as Trust
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By:
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[____________],
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not in its individual capacity but solely as Owner Trustee
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By:
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Name:
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Title:
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CELLCO PARTNERSHIP d/b/a VERIZON WIRELESS,
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as Administrator
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By:
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Name:
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Title:
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AGREED AND ACCEPTED BY:
VERIZON ABS II LLC,
as Depositor
By:
Name:
Title:
[___________],
not in its individual capacity but
solely as Master Collateral Agent
By:
Name:
Title:
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