Document:

Exhibit 4.1

 

Execution
Copy

 

WELLS
FARGO BANK,

NATIONAL ASSOCIATION,

Master Servicer

 

and

 

KEYBANK
NATIONAL ASSOCIATION,

Primary Servicer

 

PRIMARY
SERVICING AGREEMENT

Dated as of July 1, 2018

 

Morgan
Stanley Capital I Trust 2018-H3,

Commercial Mortgage Pass-Through Certificates

Series 2018-H3

 

     

    

    

 

TABLE
OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	 	Page
	ARTICLE I 	 	DEFINITIONS	 	1	 
	 	Section
    1.01	Defined Terms	 	1	 
	ARTICLE II	 	MASTER SERVICER’S
    ENGAGEMENT OF PRIMARY SERVICER TO PERFORM SERVICING RESPONSIBILITIES	 	2	 
	 	Section
    2.01	Contract for Servicing;
    Possession of Mortgage Loan Documents	 	2	 
	 	Section
    2.02	Notice of Breach of Representations and Warranties	 	3	 
	ARTICLE III	SERVICING OF THE
    MORTGAGE LOANS AND THE SERVICED COMPANION LOANS	 	3	 
	 	Section
    3.01	Primary Servicer
    to Service	 	3	 
	 	Section
    3.02	Merger or Consolidation
    of the Primary Servicer	 	16	 
	 	Section
    3.03	Limitation on Liability
    of the Primary Servicer and Others	 	16	 
	 	Section
    3.04	Primary Servicer
    Not to Resign	 	17	 
	 	Section
    3.05	No Transfer or Assignment
    of Servicing	 	17	 
	 	Section
    3.06	Indemnification	 	18	 
	ARTICLE IV 	 	DEFAULT	 	18	 
	 	Section
    4.01	Events of Default	 	18	 
	 	Section
    4.02	Waiver of Defaults	 	21	 
	 	Section
    4.03	Other Remedies of
    Master Servicer	 	21	 
	ARTICLE V	 	TERMINATION	 	21	 
	 	Section
    5.01	Termination	 	22	 
	 	Section
    5.02	Termination With
    Cause	 	22	 
	 	Section
    5.03	Termination of Duties
    with Respect to Specially Serviced Loans	 	22	 
	ARTICLE VI	 	MISCELLANEOUS	 	22	 
	 	Section
    6.01	Successor to the
    Primary Servicer	 	22	 
	 	Section
    6.02	Financial Statements	 	23	 
	 	Section
    6.03	Closing	 	23	 
	 	Section
    6.04	Closing Documents	 	23	 
	 	Section
    6.05	Notices	 	24	 

 

    ii 

    

    

 

TABLE
OF CONTENTS

(continued)

 

	 	 	 	 	 	Page
	 	Section 6.06	 	Severability Clause	 	25	 
	 	Section 6.07	 	Counterparts	 	25	 
	 	Section 6.08	 	Governing Law	 	25	 
	 	Section 6.09	 	Protection of Privileged Information	 	25	 
	 	Section 6.10	 	Intention of the Parties	 	25	 
	 	Section 6.11	 	Third Party Beneficiary	 	26	 
	 	Section 6.12	 	Successors and Assigns; Assignment of Agreement	 	26	 
	 	Section 6.13	 	Waivers	 	26	 
	 	Section 6.14	 	Exhibits	 	26	 
	 	Section 6.15	 	General Interpretive Principles	 	26	 
	 	Section 6.16	 	Complete Agreement	 	26	 
	 	Section 6.17	 	Further Agreement	 	27	 
	 	Section 6.18	 	Amendments	 	27	 

 

    iii 

    

    

 

	EXHIBIT
    A	MORTGAGE
    LOAN SCHEDULE	 	A-1
	EXHIBIT B	PRIMARY SERVICER’S
    OFFICER’S CERTIFICATE	 	B-1
	EXHIBIT C	POOLING AND SERVICING
    AGREEMENT	 	C-1
	EXHIBIT D	RESERVED	 	 
	EXHIBIT E	QUARTERLY SERVICING
    CERTIFICATION	 	E-1
	EXHIBIT F	FORM OF ACCOUNT
    CERTIFICATION	 	F-1
	EXHIBIT G	FORM OF COLLECTION
    REPORT	 	G-1
	EXHIBIT H	FORM OF CERTIFICATE
    OF INSURANCE	 	H-1
	EXHIBIT I	NEW LEASE INFORMATION	 	I-1
	EXHIBIT J	MONTHLY SERVICING
    ACCOUNTS CERTIFICATION	 	J-1

 

    iv 

    

    

 

This
is a Primary Servicing Agreement (the “Agreement”), dated as of July 1, 2018, by and between KEYBANK NATIONAL
ASSOCIATION, having an office at 11501 Outlook Street, Suite 300, Overland Park, Kansas 66211, and its successors and assigns
(the “Primary Servicer”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, having an office at c/o Commercial Mortgage
Servicing, MAC D1050-084, Three Wells Fargo, 401 South Tryon Street, 8th Floor, Charlotte, North Carolina 28202, and
its successors and assigns (the “Master Servicer”).

 

WITNESSETH:

 

WHEREAS,
Morgan Stanley Capital I Inc., as depositor (the “Depositor”), LNR Partners, LLC, as special servicer (the
“Special Servicer”), Wilmington Trust, National Association, as trustee (the “Trustee”),
Wells Fargo Bank, National Association, as certificate administrator (the “Certificate Administrator”), Park
Bridge Lender Services LLC, as operating advisor (in such capacity, the “Operating Advisor”) and as asset representations
reviewer (in such capacity, the “Asset Representations Reviewer”), and the Master Servicer have entered into
that certain Pooling and Servicing Agreement dated as of July 1, 2018, as amended, modified and restated from time to time (the
“Pooling and Servicing Agreement”), whereby the Master Servicer shall service certain mortgage loans and related
companion loans on behalf of the Trustee;

 

WHEREAS,
Section 3.20 of the Pooling and Servicing Agreement authorizes the Master Servicer to enter into this agreement with the
Primary Servicer whereby the Primary Servicer shall service the mortgage loan or mortgage loans, as applicable, listed on Exhibit
A (the “Mortgage Loan Schedule”) attached hereto (herein referred to as the “Mortgage Loans”)
and the HTI Medical Office Portfolio Serviced Pari Passu Companion Loans (the “Serviced Companion Loans”) on
behalf of the Master Servicer.

 

NOW,
THEREFORE, in consideration of the mutual agreements hereinafter set forth, and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the Master Servicer and the Primary Servicer hereby agree as follows:

 

ARTICLE
I

 

DEFINITIONS

 

Section
1.01     Defined Terms.

 

Unless
otherwise specified in this Agreement, all capitalized terms not otherwise defined herein shall have the meanings set forth in
the Pooling and Servicing Agreement. As used herein, the following terms have the meanings assigned to them in this Section
1.01:

 

“Collection
Report” shall mean the monthly report prepared by the Primary Servicer setting forth, with respect to each Mortgage
Loan and Serviced Companion Loan and the most recently ended Collection Period prior to the due date of such report, the information
described on Exhibit G attached hereto.

 

     1

    

    

 

“Mortgage
Loans” shall have the meaning specified in the recitals hereto.

 

“Mortgage
Loan Schedule” shall have the meaning specified in the recitals hereto.

 

“Primary
Servicer Collection Account” shall have the meaning set forth in Section 3.01(c)(7) of this Agreement.

 

“Primary
Servicer Companion Distribution Account” shall have the meaning set forth in Section 3.01(c)(8) of this Agreement.

 

“Primary
Servicer Remittance Amount” shall mean, with respect to any date and with respect to the Mortgage Loans, an amount equal
to, without duplication, (a) the sum of (i) the aggregate of the amounts on deposit attributable to the Mortgage Loans in the
Primary Servicer Collection Account as of such date, (ii) if and to the extent not included in the amount referred to in subclause
(a)(i), the aggregate amount transferred from the REO Account (if established) to the Primary Servicer as of such date, to the
extent not previously remitted to the Master Servicer, (iii) the aggregate of all other amounts received with respect to the Mortgage
Loans as of such date to the extent not previously remitted to the Master Servicer, and (iv) if and to the extent not previously
remitted to the Master Servicer, any amounts deposited by the Primary Servicer pursuant to Section 3.01(c)(23) of this
Agreement; net of (b) the portion of the amount described in subclause (a) of this definition that represents one or more of the
following: (i) Escrow Payments or (ii) any amounts that the Primary Servicer is entitled to retain as compensation pursuant to
Section 3.11 of the Pooling and Servicing Agreement as incorporated herein pursuant to Section 3.01(c)(18) of this
Agreement.

 

“Primary
Servicer Remittance Date” shall mean the first Business Day after each Determination Date.

 

“Primary
Servicer Reporting Date” shall mean the first Business Day after each Determination Date.

 

“Primary
Servicing Fee” shall mean, with respect to each Mortgage Loan and Serviced Companion Loan and related REO Loan, the
fee payable to the Primary Servicer pursuant to Section 3.01(c)(18) of this Agreement.

 

“Primary
Servicing Fee Rate” shall mean, with respect to each Mortgage Loan and Serviced Companion Loan, the rate that corresponds
to such Mortgage Loan and Serviced Companion Loan set forth on Exhibit A hereto under the heading “Primary
Servicing Fee.”

 

“Serviced
Companion Loans” shall have the meaning specified in the recitals hereto.

 

“Serviced
Whole Loan” shall mean the Serviced Companion Loans and the related Mortgage Loan.

 

ARTICLE
II

 

     2

    

    

 

MASTER
SERVICER’S ENGAGEMENT OF PRIMARY SERVICER

TO PERFORM SERVICING RESPONSIBILITIES

 

Section
2.01     Contract for Servicing; Possession of Mortgage Loan Documents.

 

The
Master Servicer, by execution and delivery of this Agreement, does hereby contract with the Primary Servicer, subject to the terms
of this Agreement, for the servicing of the Mortgage Loans and the Serviced Companion Loans. On and after the Closing Date, the
Primary Servicer shall hold any portion of the Servicing File or the Mortgage File (including without limitation, any original
letter of credit) in the possession of the Primary Servicer in trust by the Primary Servicer, on behalf of the Master Servicer
for the benefit of the Certificateholders. The Primary Servicer’s possession of any portion of the Servicing File or the
Mortgage File shall be at the will of the Master Servicer and the Trustee for the sole purpose of facilitating the servicing or
the supervision of servicing of the related Mortgage Loan and Serviced Companion Loans pursuant to this Agreement, and such retention
and possession by the Primary Servicer shall be in a custodial capacity only. Any portion of the Servicing File or the Mortgage
File retained by the Primary Servicer shall be identified to reflect clearly the ownership of the related Mortgage Loan by the
Trustee. The Primary Servicer shall release from its custody any Servicing File or any Mortgage File retained by it only in accordance
with this Agreement and the Pooling and Servicing Agreement. The Primary Servicer shall hold the original of each letter of credit
relating to a Mortgage Loan in trust on behalf of the Trust in order to draw on such letter of credit on behalf of the Trust.
The Primary Servicer shall forward a copy of each letter of credit to the Master Servicer. During the term of this Agreement,
the Primary Servicer will also provide to the Master Servicer a copy of any lease, amendments to Mortgage Loan documents and other
documents related to the Mortgaged Property securing the related Mortgage Loan (and the related Serviced Companion Loans) or related
to the Mortgage Loan (and the related Serviced Companion Loans) as soon as possible after receipt or execution thereof, as applicable.

 

Section
2.02     Notice of Breach of Representations and Warranties.

 

Following
its receipt from the Depositor, the Master Servicer shall provide a copy of the applicable Mortgage Loan Purchase Agreement to
the Primary Servicer. The Primary Servicer shall promptly notify in writing the Master Servicer upon becoming aware of any breach
of any representations and warranties contained in such Mortgage Loan Purchase Agreement or a document defect that could give
rise to a cure or repurchase obligation. The Primary Servicer shall reasonably cooperate with the Master Servicer in pursuing
its obligations to make a repurchase claim against the related Mortgage Loan Seller. The Primary Servicer shall notify the Master
Servicer in writing within five (5) Business Days after the Primary Servicer discovers or receives notice alleging a Defect or
a Breach or receives notice of a 15Ga-1 Repurchase Request. The Primary Servicer shall promptly, but in no event later than five
(5) Business Days after receipt, provide to the Master Servicer a copy of any written 15Ga-1 Repurchase Request, withdrawal of
a 15Ga-1 Repurchase Request, or rejection of a 15Ga-1 Repurchase Request received by the Primary Servicer and such other information
in the possession of the Primary Servicer reasonably requested by the Master Servicer to fulfill its obligations under Section

 

     3

    

    

 

2.02(g)
and Section 2.03 of the Pooling and Servicing Agreement.

 

ARTICLE
III

 

SERVICING
OF THE MORTGAGE LOANS AND THE SERVICED COMPANION LOANS

 

Section
3.01     Primary Servicer to Service.

 

(a)          The
Primary Servicer, as an independent contractor, shall service and administer the Mortgage Loans and the Serviced Companion Loans
in a manner consistent with the Servicing Standard under the Pooling and Servicing Agreement and, in the case of the Serviced
Companion Loans, as a collective whole with the related Mortgage Loan, taking into account the pari passu nature of such Serviced
Companion Loans.

 

(b)          The
Primary Servicer shall perform, on behalf of the Master Servicer, all of the obligations of the Master Servicer (with respect
to the Mortgage Loans and the Serviced Companion Loans subject to this Agreement) as set forth in those sections of the Pooling
and Servicing Agreement specifically incorporated herein pursuant to Section 3.01(c) of this Agreement (the “Incorporated
Sections”), as modified by Section 3.01(c) of this Agreement, and the Master Servicer shall have the same rights
with respect to the Primary Servicer that the Trustee, the Certificate Administrator, the Custodian, the Depositor, the Initial
Purchasers, the Directing Certificateholder, the Controlling Class Certificateholder, the Operating Advisor, the Asset Representations
Reviewer, the Rating Agencies, the Underwriters, the 17g-5 Information Provider, the Certificateholders and the Special Servicer
(including, without limitation, the right of the Special Servicer to direct the Master Servicer during certain periods) have with
respect to the Master Servicer under the Pooling and Servicing Agreement to the extent that the Primary Servicer is acting on
behalf of the Master Servicer hereunder and except as otherwise set forth herein. Without limiting the foregoing, and subject
to Section 3.19 of the Pooling and Servicing Agreement as modified herein, the Primary Servicer shall service and administer
all of the Mortgage Loans and Serviced Companion Loans that are not Specially Serviced Loans; provided, however, that the Primary
Servicer shall continue to receive payments (and provide notice to the Master Servicer of such payments), collect information
and prepare and deliver reports to the Master Servicer required hereunder with respect to any Specially Serviced Loans and REO
Properties (and the related REO Loans), and render such incidental services with respect to any Specially Serviced Loans and REO
Properties as and to the extent as may be specifically provided for herein. All references herein to the respective duties of
the Primary Servicer and the Special Servicer, and to the areas in which they may exercise discretion, shall be subject to Section
3.19 of the Pooling and Servicing Agreement, as modified herein, and to the Special Servicer’s rights to service Specially
Serviced Loans. Except as otherwise set forth below, for purposes of this Agreement, (i) references to the Trustee, the Certificate
Administrator, the Custodian, the Depositor, the Special Servicer, the Initial Purchasers, the Directing Certificateholder, the
Underwriters, the Operating Advisor, the Asset Representations Reviewer, the Rating Agencies, the Controlling Class Certificateholder,
the 17g-5 Information Provider and the Certificateholders in the Incorporated Sections (and in the defined terms used therein)
shall be deemed to be references to the Master Servicer hereunder, (ii) references to the

 

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Master
Servicer in the Incorporated Sections (and in the defined terms used therein) shall be deemed to be references to the Primary
Servicer hereunder, (iii) references to the Mortgage Loans, as defined in the Pooling and Servicing Agreement, in the Incorporated
Sections (and in the defined terms used therein) shall be deemed to be references to the Mortgage Loans in this Agreement and
(iv) references to the Serviced Companion Loans and Serviced Pari Passu Companion Loans, each as defined in the Pooling and Servicing
Agreement, in the Incorporated Sections (and in the defined terms used therein) shall be deemed to be references to the Serviced
Companion Loans in this Agreement (such modification of the Incorporated Sections (and in the defined terms used therein) pursuant
to clauses (i), (ii), (iii) and (iv) of this sentence shall be referred to herein as the “References Modification”).
In each case where the Master Servicer is given any power to act under the provisions of the Incorporated Sections, such power
is hereby delegated to the Primary Servicer to the extent necessary to perform its obligations under this Agreement and subject
to the restrictions contained in this Agreement. With respect to all servicing responsibilities of the Master Servicer under the
Pooling and Servicing Agreement which are not being performed by the Primary Servicer under this Agreement, the Primary Servicer
shall reasonably cooperate with the Master Servicer to facilitate the timely performance of such servicing responsibilities.

 

(c)          The
following Sections of the Pooling and Servicing Agreement, unless otherwise provided in this Section 3.01(c) of this
Agreement, are hereby incorporated herein by reference as if fully set forth herein, and, for purposes of this Agreement, in
addition to the References Modification, are hereby further modified as set forth below:

 

(1)          Section
1.02. The determination as to the application of amounts collected in respect of any Mortgage Loan or the Serviced Companion
Loans, in the absence of express provisions in the related Mortgage Loan documents or to the extent that such terms authorize
the lender to use its discretion, shall be made by the Master Servicer.

 

(2)          Sections
3.01(a) - (f), (h), (j), (m) and (n). Without limiting the generality of the obligations of the Primary Servicer hereunder,
the Primary Servicer shall monitor and certify on a quarterly basis, starting with the quarter ending September of 2018, within
thirty (30) days of the end of such quarter the information on each Mortgage Loan as required by, and in the form of, Exhibit
E attached hereto, pursuant to Section 3.01(c)(21) of this Agreement. In addition, without limiting the generality
of the foregoing, the Primary Servicer shall take all necessary action to continue all UCC Financing Statements in favor of the
originator of each Mortgage Loan (and related Serviced Companion Loans) or in favor of any assignee prior to the expiration of
such UCC Financing Statements. Notwithstanding the foregoing, the Primary Servicer’s authority is restricted as provided
in Section 3.01(c)(14) and (24) of this Agreement.

 

(3)          Section
3.02. The Primary Servicer may not waive any Penalty Charges that the Master Servicer is permitted to waive under Section
3.02 of the Pooling and Servicing Agreement without the consent of the Master Servicer. The Primary Servicer shall promptly
notify the Master Servicer of any defaults under the Mortgage Loans or Serviced Companion Loans, collection issues or customer
issues and shall take no actions with respect to enforcing such Mortgage Loans or Serviced Companion Loans without the prior written
consent of the Master Servicer.

 

     5

    

    

 

(4)          Section
3.03(a). The creation of any Servicing Account shall be evidenced by a certification in the form of Exhibit F
attached hereto and a copy of such certification shall be furnished to the Master Servicer on or prior to the Closing Date and
thereafter to the Master Servicer upon any transfer of any Servicing Account.

 

(5)          Sections
3.03(b) and (e). Without limiting the generality of the obligations of the Primary Servicer hereunder, the Primary Servicer
shall monitor and certify to the information on each Mortgage Loan and Serviced Companion Loan with respect to taxes, insurance
premiums, assessments, ground rents and other similar items on a quarterly basis starting for the quarter ending in September
of 2018, within thirty (30) days of the end of such quarter as required by, and in the form of, Exhibit E attached
hereto, pursuant to Section 3.01(c)(21) of this Agreement.

 

(6)          Section
3.03(c) is not incorporated herein. The Primary Servicer shall not be permitted to make any Servicing Advances. The Primary
Servicer shall give the Master Servicer not less than five (5) Business Days’ notice before the date on which the Master
Servicer is required to make any Servicing Advance with respect to any Mortgage Loan or Serviced Companion Loan. In addition,
the Primary Servicer shall provide the Master Servicer with such information in its possession as the Master Servicer may reasonably
request to enable the Master Servicer to determine whether a requested Servicing Advance would constitute a Nonrecoverable Servicing
Advance.

 

(7)          Section
3.04(a). The Primary Servicer shall establish a custodial account (hereinafter the “Primary Servicer Collection Account”),
meeting all of the requirements of the Collection Account, and references to the Collection Account shall be references to such
Primary Servicer Collection Account. The creation of any Primary Servicer Collection Account shall be evidenced by a certification
in the form of Exhibit F attached hereto and a copy of such certification shall be furnished to the Master Servicer
on or prior to the Closing Date and thereafter to the Master Servicer upon any transfer of the Primary Servicer Collection Account.
Notwithstanding the third paragraph of Section 3.04(a) of the Pooling and Servicing Agreement, the Primary Servicer shall
deposit into the Primary Servicer Collection Account and include in its Primary Servicer Remittance Amount all Escrow Payments,
Penalty Charges, Modification Fees, defeasance fees, assumption fees, loan service transaction fees, extension fees, assumption
application fees, consent fees, Prepayment Interest Excess, charges for beneficiary statements or demands, amounts collected for
checks returned for insufficient funds and other fees and amounts collected from Mortgagors that constitute additional servicing
compensation and/or additional special servicing compensation (in each case, other than those to which the Primary Servicer is
entitled pursuant to Section 3.01(c)(18) of this Agreement). Any amounts of additional special servicing compensation payable
to the Special Servicer shall be remitted to the Special Servicer by the Master Servicer. For purposes of the last paragraph of
Section 3.04(a) of the Pooling and Servicing Agreement, the Master Servicer shall direct the Special Servicer to make payment
of amounts referenced therein directly to the Primary Servicer for deposit in the Primary Servicer Collection Account.

 

(8)          Section
3.04(b) is not incorporated herein. Only the second paragraph of

 

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Section
3.04(b) of the Pooling and Servicing Agreement is incorporated herein. References to the Collection Account shall be references
to the Primary Servicer Collection Account for purposes of the second paragraph of Section 3.04(b). The Primary Servicer
shall establish a custodial account (hereinafter the “Primary Servicer Companion Distribution Account”), meeting
all of the requirements of the Companion Distribution Account, and references to the Companion Distribution Account in the second
paragraph of Section 3.04(b) of the Pooling and Servicing Agreement shall be references to such Primary Servicer Companion
Distribution Account. The creation of any Primary Servicer Companion Distribution Account shall be evidenced by a certification
in the form of Exhibit F attached hereto (to the extent the Primary Servicer Companion Distribution Account is a
separate account) and a copy of such certification shall be furnished to the Master Servicer on or prior to the Closing Date and
thereafter to the Master Servicer upon any transfer of the Primary Servicer Companion Distribution Account. References to the
Companion Paying Agent shall be deemed to be references to the Primary Servicer and references to the Companion Holder shall be
deemed to be references to the Companion Holder for purposes of the last two sentences of the second paragraph of Section 3.04(b)
of the Pooling and Servicing Agreement.

 

With
respect to each Distribution Date, the Primary Servicer shall deliver to the Master Servicer on or before the Primary Servicer
Remittance Date the Primary Servicer Remittance Amount for such date. Each remittance required to be made to the Master Servicer
on the Primary Servicer Remittance Date shall be made by wire transfer and shall be made by 2:00 p.m. Charlotte, North Carolina
time on such date. Each month, on each Business Day between the Primary Servicer Remittance Date and the Distribution Date, the
Primary Servicer shall forward to the Master Servicer by wire transfer the Primary Servicer Remittance Amount for such date. Each
month, on each Business Day that the Primary Servicer is not required to remit to the Master Servicer pursuant to the previous
sentence, the Primary Servicer shall forward to the Master Servicer by wire transfer all amounts collected by the Primary Servicer
and not previously remitted to the Master Servicer which constitute delinquent payments on the Mortgage Loans and any related
Penalty Charges. Section 3.01(c)(21) of this Agreement sets forth certain reporting requirements with respect to such remittances.

 

(9)          Section
3.05(a) is not incorporated herein. The Primary Servicer may, from time to time, make withdrawals from the Primary Servicer
Collection Account for any of the following purposes (the order set forth below not constituting an order of priority for such
withdrawals):

 

(i)          (A)
to remit to the Master Servicer for deposit in the Collection Account the amounts required to be so deposited pursuant to the
second sentence of Section 3.04(b) of the Pooling and Servicing Agreement and Section 3.01(c)(8) of this Agreement
and (B) to remit to the Companion Paying Agent for deposit in the Primary Servicer Companion Distribution Account the amounts
required to be so deposited pursuant to the second paragraph of Section 3.04(b) of the Pooling and Servicing Agreement
as incorporated by Section 3.01(c)(8) of this Agreement;

 

(ii)         to
the extent not otherwise required to be applied against

 

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Prepayment
Interest Shortfalls on the related Mortgage Loans and Serviced Companion Loans, to pay itself earned and unpaid Primary Servicing
Fees, with respect to the Mortgage Loans, the Serviced Companion Loans and/or any successor REO Loans in respect thereof, the
Primary Servicer’s right to payment pursuant to this clause (ii) with respect to any such Mortgage Loan, Serviced
Companion Loan or REO Loans being limited to amounts on deposit in the Primary Servicer Collection Account that are received on
or in respect of on such Mortgage Loan, Serviced Companion Loan or REO Loan, as applicable (whether in the form of payments, Liquidation
Proceeds or Insurance and Condemnation Proceeds), that are allocable as recovery of interest thereon;

 

(iii)        to
pay itself out of general collections on the Mortgage Loans, the Serviced Companion Loans and REO Properties, with respect to
any Mortgage Loan, Serviced Companion Loan or REO Property any related earned Primary Servicing Fee that remained unpaid in accordance
with clause (ii) above following a Final Recovery Determination made with respect to such Mortgage Loan or REO Property and the
deposit into the Collection Account of all amounts received in connection therewith;

 

(iv)        to
pay itself, as additional servicing compensation in accordance with Section 3.11(a) of the Pooling and Servicing
Agreement, interest and investment income earned in respect of amounts held in the Primary Servicer Collection Account as
provided in Section 3.01(c)(10) of this Agreement, but only to the extent of the Net Investment Earnings, if any, with
respect to the Primary Servicer Collection Account for the period from and including the prior Primary Servicer Remittance
Date to and including such Primary Servicer Remittance Date;

 

(v)         to
remit to the Companion Paying Agent for deposit into the Primary Servicer Companion Distribution Account the amounts required
to be deposited pursuant to Section 3.04(b) of the Pooling and Servicing Agreement as incorporated by Section 3.01(c)(8)
of this Agreement without duplication of amounts deposited pursuant to clause (i) above;

 

(vi)        to
clear and terminate the Primary Servicer Collection Account at the termination of this Agreement pursuant to Section
9.01 of the Pooling and Servicing Agreement, as modified herein; and

 

(vii)       to
remove any amounts deposited in the Primary Servicer Collection Account in error.

 

The
Primary Servicer shall keep and maintain separate accounting records, on a loan-by-loan basis, reflecting amounts allocable to
each Mortgage Loan and Serviced Companion Loan, and on a property-by-property basis when appropriate, for the purpose of justifying
any withdrawal, debit or credit from the Primary Servicer Collection Account. Upon written request, the Primary Servicer shall
provide to the Master Servicer such records.

 

     8

    

    

 

(10)        Section
3.06 is not incorporated herein. The Primary Servicer may invest funds in the Primary Servicer Collection Account, the Primary
Servicer Companion Distribution Account and/or any Servicing Account maintained by it on the same terms as the Master Servicer
may invest funds in the Collection Account, the Companion Distribution Account and/or a Servicing Account, and subject to the
same rights, restrictions and obligations regarding maturity dates, gains, losses, withdrawals, possession and control of Permitted
Investments and Permitted Investments payable on demand. Without limiting the generality of the foregoing, any investment of funds
in the Primary Servicer Collection Account, the Primary Servicer Companion Distribution Account and/or Servicing Account shall
be made in the name of the Primary Servicer on behalf of the Trustee (in its capacity as such) for the benefit of the Certificateholders.

 

(11)        Sections
3.07(a) and (d). References to the Collection Account shall be references to the Primary Servicer Collection Account. All
insurance policies caused to be maintained by the Primary Servicer hereunder shall also name the Master Servicer as loss payee.
Within fifteen (15) days after the execution date of this agreement, the Primary Servicer shall forward to the Master Servicer
a fully completed certificate of insurance in the form of Exhibit H attached hereto. Without limiting the generality
of the obligations of the Primary Servicer hereunder, the Primary Servicer shall monitor and certify as to the status of insurance
policies relating to the Mortgage Loans and the Serviced Companion Loans on a quarterly basis starting for the quarter ending
in September of 2018, within 30 days of the end of such quarter as required by, and in the form of, Exhibit E attached
hereto, pursuant to Section 3.01(c)(21) of this Agreement. The Primary Servicer shall promptly notify the Master Servicer
of any Mortgaged Property that is not insured against terrorist or other similar acts. The Master Servicer or the Special Servicer,
as applicable, shall make all determinations with respect to terrorism insurance matters required to be made under Section
3.07 of the Pooling and Servicing Agreement, and the Primary Servicer shall reasonably cooperate with the Master Servicer
in connection therewith.

 

(12)        Section
3.07(b). References to the Collection Account shall be references to the Primary Servicer Collection Account.

 

(13)        Section
3.07(c). The Primary Servicer shall cause to be delivered to the Master Servicer from time to time upon the Master Servicer’s
reasonable request a certificate of insurance or other evidence of such fidelity bond and errors and omissions insurance. The
Primary Servicer shall promptly notify or cause its insurer to notify the Master Servicer of any material change to such fidelity
bond or errors and omissions insurance.

 

(14)        Section
3.08. Notwithstanding anything herein to the contrary, the Primary Servicer will not permit or consent to any assumption,
transfer or other action contemplated by Section 3.08 of the Pooling and Servicing Agreement unless the Primary Servicer
has confirmed with the Master Servicer that the Master Servicer is either obligated to process or that the Master Servicer and
the Special Servicer have mutually agreed that the Master Servicer shall process such request pursuant to Section 3.08
and Section 3.33 of the Pooling and Servicing Agreement. Following such confirmation, the Primary Servicer will not permit
or consent to any assumption, transfer or other action contemplated by Section 3.08 of the Pooling and Servicing Agreement

 

     9

    

    

 

without
the prior written consent of the Master Servicer. With respect to any such proposed action, the Primary Servicer shall perform
and forward to the Master Servicer any analysis, recommendation or other information required to be prepared and/or delivered
by the Master Servicer under Section 3.08 and Section 3.33 of the Pooling and Servicing Agreement. The Master Servicer,
not the Primary Servicer, will deal directly with the Special Servicer in connection with obtaining any necessary approval or
consent from the Special Servicer. If the Primary Servicer shall process any such assumption, transfer or other action, and the
Master Servicer consents to such transaction, the Primary Servicer shall process, document and close such transaction. The Primary
Servicer shall promptly provide copies of any waivers it effects pursuant to this Section to the Master Servicer and the Master
Servicer will provide notice or copies to the 17g-5 Information Provider and Rating Agencies to the extent required by the Pooling
and Servicing Agreement.

 

(15)        [Reserved].

 

(16)        Section
3.09. References to the Master Servicer shall not be deemed to be references to the Primary Servicer for purposes of Section
3.09 (other than Section 3.09(f)) of the Pooling and Servicing Agreement.

 

(17)        Section
3.10. The references to the Collection Account in Section 3.10 of the Pooling and Servicing Agreement shall be references
to the Primary Servicer Collection Account. No expense incurred in connection with any instrument of satisfaction or deed of reconveyance
shall be chargeable to the Primary Servicer Collection Account.

 

(18)        Section
3.11(a). References to the Servicing Fee shall be references to the Primary Servicing Fee and references to the Servicing
Fee Rate shall be references to the Primary Servicing Fee Rate. The third and fourth paragraphs of Section 3.11(a) of the
Pooling and Servicing Agreement are not incorporated herein. In addition, the Primary Servicer shall be entitled to receive, as
additional servicing compensation, to the extent the Master Servicer is entitled to such amounts under the Pooling and Servicing
Agreement, (i) all investment income earned on amounts on deposit in the Primary Servicer Collection Account and certain Servicing
Accounts (to the extent consistent with the related Mortgage Loan documents), (ii) 100% of any amounts collected by the Primary
Servicer for checks returned for insufficient funds, demand fees or similar items with respect to the Mortgage Loans and Serviced
Companion Loans to the extent the Master Servicer is entitled to such items under Section 3.11(a) of the Pooling and Servicing
Agreement, (iii) 50% of that portion of any Excess Modification Fees, consent fees and similar fees to which the Master Servicer
is entitled under Section 3.11(a) of the Pooling and Servicing Agreement with respect to the Mortgage Loans and Serviced
Companion Loans in connection with matters performed by the Primary Servicer pursuant to Section 3.01(c)(24) of this Agreement,
(iv) 50% of that portion of any assumption fees and assumption application fees (or similar fees) to which the Master Servicer
is entitled under Section 3.11(a) of the Pooling and Servicing Agreement with respect to the Mortgage Loans and Serviced
Companion Loans, (v) 50% of that portion of any defeasance fees to which the Master Servicer is entitled under Section 3.11(a)
of the Pooling and Servicing Agreement in connection with matters performed by the Primary Servicer pursuant to Section
3.01(c)(24) of this Agreement with respect to the Mortgage Loans and Serviced Companion Loans, and (vi) 100% of that portion
of any beneficiary

 

     10

    

    

 

statement
charges to which the Master Servicer is entitled under Section 3.11(a) of the Pooling and Servicing Agreement with respect
to the Mortgage Loans and Serviced Companion Loans. The Primary Servicer shall not be entitled to any Prepayment Interest Excesses,
Compensating Interest Payments, Default Interest, Penalty Charges, or other amounts not specifically addressed above in this Section
3.01(c)(18).

 

(19)        Section
3.12(a). The Primary Servicer shall promptly (but in no event later than three (3) Business Days after the completion of related
inspection report) forward to the Master Servicer a copy of all inspection reports prepared by or on behalf of the Primary Servicer.
The Primary Servicer may engage a third party at its cost to perform property inspections and prepare property inspection reports
without first obtaining the consent of the Master Servicer; provided, however, that the Primary Servicer shall remain
obligated and primarily liable to the Master Servicer for satisfactory completion of the inspections and reports as required by
this Agreement. If any inspection report identifies a “life safety” or other material deferred maintenance item existing
with respect to the related Mortgaged Property, the Primary Servicer (x) shall promptly send to the related Mortgagor a letter
identifying such deferred maintenance item and instructing such Mortgagor to correct such deferred maintenance item and (y) shall
follow up with such Mortgagor in writing and at such frequency as is in accordance with the Servicing Standard to confirm that
such deferred maintenance item is being corrected. The Primary Servicer shall promptly notify the Master Servicer of any event
or circumstance that gives rise to enforcement rights with respect to the manager under the related Mortgage Loan documents and
management agreement.

 

(20)        [Reserved].

 

(21)        Sections
3.12(b), (d) and (f). The Primary Servicer shall electronically deliver to the Master Servicer in Microsoft Excel format promptly
upon completion, and in any event, at least five (5) Business Days before the Master Servicer must deliver or make available such
reports, statements and files under the Pooling and Servicing Agreement, a copy of all operating statements, rent rolls, income
statements, budgets and financial statements collected by the Primary Servicer and the CREFC® Operating Statement
Analysis Report and CREFC® NOI Adjustment Worksheet with respect to the Mortgage Loans and Serviced Companion Loans
as required by Section 3.12(b) of the Pooling and Servicing Agreement. The Primary Servicer shall deliver to the Master
Servicer, no later than 5:00 p.m., New York City time on the Primary Servicer Reporting Date, by electronic transmission in the
format mutually agreed upon by the Master Servicer and the Primary Servicer, the reports, statements and files required by the
first paragraph of Section 3.12(d) of the Pooling and Servicing Agreement. The Primary Servicer, in connection with the
reports that it prepares in connection with Sections 3.13(b) and (d) of the Pooling and Servicing Agreement, will
afford the Master Servicer reasonable cooperation by providing such information as the Master Servicer may reasonably request
in connection with the Master Servicer’s responsibilities in Sections 3.13(b) and (d) of the Pooling and Servicing
Agreement. The Primary Servicer shall also deliver the reports in this paragraph to the related Companion Holder no later than
the Serviced Whole Loan Remittance Date.

 

The
penultimate sentence in the first paragraph of Section 3.12(d) of the Pooling and Servicing Agreement is not incorporated
herein. The Primary Servicer shall deliver to the

 

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Master
Servicer, no later than 5:00 p.m. New York City time on the Primary Servicer Reporting Date, by electronic transmission in the
format reasonably acceptable to the Master Servicer and the Primary Servicer, the CREFC® Loan Periodic Update File,
providing the required information as of such Determination Date. The Primary Servicer shall deliver to the Master Servicer by
electronic transmission (in a format reasonably acceptable to the Master Servicer and the Primary Servicer) (a) not later than
5:00 p.m. New York City time on the first Business Day following each Determination Date and on each Serviced Whole Loan Remittance
Date, the Collection Report (the information therein to be stated as of the Determination Date) in the form of Exhibit G
and (b) within thirty (30) days after the end of each calendar quarter, beginning with the quarter ending on September
30, 2018, the certification on the Mortgage Loans and Serviced Companion Loans, including without limitation information regarding
UCC Financing Statements, taxes, insurance premiums and ground rents, required by and in the form of Exhibit E attached
hereto. The Primary Servicer shall deliver to the Master Servicer no later than 5:00 p.m. New York City time on the second Business
Day of each month by electronic transmission in a format reasonably acceptable to the Master Servicer and the Primary Servicer,
a remittance report containing scheduled balance information for each Mortgage Loan and Serviced Companion Loan reflecting the
scheduled Periodic Payment for such month in the form of Exhibit G attached hereto. In addition, on each day that
the Primary Servicer forwards to the Master Servicer any funds pursuant to Section 3.01(c)(8) of this Agreement, the Primary
Servicer shall deliver to the Master Servicer by electronic transmission in a format reasonably acceptable to the Master Servicer
and the Primary Servicer, a report of the nature of such remittance in the form of Exhibit G attached hereto. The
Primary Servicer shall also prepare and deliver to the Master Servicer not later than 5:00 p.m. New York City time on the first
Business Day following each Determination Date, a certification in the form of Exhibit J attached hereto.

 

Not
later than 5:00 p.m. New York City time on the Primary Servicer Reporting Date, the Primary Servicer shall deliver to the Master
Servicer the CREFC® Schedule AL File in EDGAR-Compatible Format with respect to the Mortgage Loans; provided, however,
that the Primary Servicer shall have no obligation to prepare or deliver the CREFC® Schedule AL File or Schedule
AL Additional File unless the Primary Servicer receives the Initial Schedule AL File, the Initial Schedule AL Additional File
and the Annex A-1 to the Prospectus from the Master Servicer. In preparing the CREFC® Schedule AL File and any
Schedule AL Additional File for any given Distribution Date, and without any due diligence, investigation or verification, the
Primary Servicer shall be entitled to conclusively rely, absent manifest error, on the content, completeness, accuracy and compliance
with any applicable requirements of Items 1111(h) and 1125 of Regulation AB and Item 601(b) of Regulation S-K under the Securities
Act as in effect on the Closing Date of the Initial Schedule AL File, the Initial Schedule AL Additional File and the Annex A-1
to the Prospectus. The Primary Servicer may concurrently with the delivery of the related CREFC® Schedule AL File,
deliver any related Schedule AL Additional File in EDGAR-Compatible Format to the Master Servicer. The CREFC® Schedule
AL Files and Schedule AL Additional File shall each be a single file. With respect to all reports delivered to the Master Servicer
under this Section 3.01(c)(21), such reports shall be sent to ssreports@wellsfargo.com or such other electronic
delivery reasonably agreed to by the Master Servicer and Primary Servicer.

 

(22)        Section
3.13. The Primary Servicer shall also be subject to Section 3.01(c)(29) of this Agreement. None of the restrictions
in Section 3.13 of the Pooling and Servicing

 

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Agreement
or Section 3.01(c)(29) of this Agreement shall prohibit or restrict oral or written communications, or providing information,
between the Primary Servicer, on the one hand, and a Rating Agency or NRSRO, on the other hand, with regard to (i) such Rating
Agency’s or NRSRO’s review of the ratings it assigns to the Primary Servicer, (ii) such Rating Agency’s or NRSRO’s
approval of the Primary Servicer as a commercial mortgage master, special or primary servicer or (iii) such Rating Agency’s
or NRSRO’s evaluation of the Primary Servicer’s servicing operations in general; provided, however,
that the Primary Servicer shall not provide any information relating to the Certificates or the Mortgage Loans to a Rating Agency
or NRSRO in connection with such review and evaluation by such Rating Agency or NRSRO unless (x) Mortgagor, property or deal specific
identifiers are redacted; (y) such information has already been provided to the 17g-5 Information Provider and has been uploaded
on to the 17g-5 Information Provider’s Website; or (z) the Rating Agency confirms that it does not intend to use such information
in undertaking credit rating surveillance with respect to the Certificates (and the Primary Servicer shall, upon request, certify
to the Depositor and the Master Servicer that it received the confirmation described in this clause (z) or provide the Depositor
and the Master Servicer with a copy of such confirmation from the applicable Rating Agency.

 

(23)        Section
3.17(a). On each Primary Servicer Remittance Date, the Primary Servicer shall deposit into the Primary Servicer Collection
Account as part of the Primary Servicer Remittance Amount, the amount set forth in Section 3.17(a) of the Pooling and Servicing
Agreement to the extent resulting from Principal Prepayments on the Mortgage Loans and to the extent that the Master Servicer
is required to remit such amounts under Section 3.17(a) of the Pooling and Servicing Agreement, and except that references
to Servicing Fees in the definition of “Compensating Interest Payments” in the Pooling and Servicing Agreement shall
be references to Primary Servicing Fees. On each Serviced Whole Loan Remittance Date, the Primary Servicer shall deliver the portion
of any Compensating Interest Payment allocated to the Serviced Companion Loan to the Companion Paying Agent for deposit in the
Primary Servicer Companion Distribution Account without right of reimbursement therefor.

 

(24)        Section
3.18. Notwithstanding anything herein to the contrary, the Primary Servicer will not take any action with respect to any modification,
extension, waiver, consent, defeasance, Major Decision, Special Servicer Decision or other action contemplated by Section 3.18
of the Pooling and Servicing Agreement unless the Primary Servicer has confirmed with the Master Servicer that the Master
Servicer is either obligated to process or has mutually agreed with the Special Servicer to process such transaction pursuant
to Section 3.18 and Section 3.33 of the Pooling and Servicing Agreement. Following such confirmation, the Primary
Servicer will not permit or consent to any modification, extension, waiver, consent, defeasance, Major Decision, Special Servicer
Decision or other action contemplated by Section 3.18 of the Pooling and Servicing Agreement without the prior written
consent of the Master Servicer. With respect to any such proposed action, the Primary Servicer shall perform and forward to the
Master Servicer any analysis, recommendation or other information required to be prepared and/or delivered by the Master Servicer
under Section 3.18 and Section 3.33 of the Pooling and Servicing Agreement. The Master Servicer, not the Primary
Servicer, will deal directly with the Special Servicer in connection with obtaining any necessary approval or consent from the
Special Servicer; however, when processing loan-related events delegated to it through this Agreement, the Primary Servicer may
consult with the Special Servicer as needed, provided that

 

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it
copies the Master Servicer on all related correspondence to the Special Servicer and includes a representative of the Master Servicer
on all related calls with the Special Servicer and otherwise keeps the Master Servicer fully informed as to the results of such
consultations. When forwarding a request for the approval of any retail lease or renewal or extension thereof, the Primary Servicer
shall forward to the Master Servicer the information concerning such lease required by, and in the form of, Exhibit I
attached hereto. The Primary Servicer will not permit any Principal Prepayment or defeasance with respect to any Mortgage Loan
or Serviced Companion Loan without the written consent of the Master Servicer. The Primary Servicer shall promptly forward all
requests for Principal Prepayments or defeasance to the Master Servicer, along with a payoff statement (with respect to each Principal
Prepayment request) setting forth the amount of the necessary Principal Prepayment calculated by the Primary Servicer.

 

(25)        Section
3.19(a). The Primary Servicer shall promptly notify the Master Servicer of any event or circumstance that the Primary Servicer
deems to cause any Mortgage Loan or Serviced Companion Loan to become a Specially Serviced Loan. The determination as to whether
a Mortgage Loan or Serviced Companion Loan has become a Specially Serviced Loan shall be made by the Master Servicer and the Master
Servicer shall promptly notify the Primary Servicer of any such determination. Upon receipt by the Master Servicer of notice from
the Special Servicer that a Specially Serviced Loan has become a Corrected Loan, the Master Servicer shall promptly give the Primary
Servicer notice thereof and the obligation of the Primary Servicer to service and administer such Mortgage Loan and, if applicable,
Serviced Companion Loan shall resume.

 

(26)        Section
3.19(c) is not incorporated herein. The Primary Servicer shall continue to process payments and maintain ongoing payment records
with respect to each Mortgage Loan and Serviced Companion Loan that becomes a Specially Serviced Loan or an REO Property and shall
timely provide the Master Servicer and the Special Servicer with any information required by either to perform their respective
duties under the Pooling and Servicing Agreement. Pursuant to Section 3.01(c)(18) of this Agreement, the Primary Servicer
shall be entitled to receive the Primary Servicing Fee for so long as the Master Servicer receives its fee, with respect to each
Specially Serviced Loan.

 

(27)        Section
3.20. References to the Master Servicer shall not be deemed to be references to the Primary Servicer for purposes of Section
3.20 of the Pooling and Servicing Agreement. Each provision of Section 3.20 of the Pooling and Servicing Agreement
shall be enforceable against the Primary Servicer in accordance with the terms thereof. The Primary Servicer may not enter into
Sub-Servicing Agreements in connection with the Mortgage Loans or the Serviced Companion Loans, but the Primary Servicer may delegate
its duties to agents or Subcontractors so long as the related agreements or arrangements with such agents or Subcontractors are
consistent with the provisions of Section 3.20 of the Pooling and Servicing Agreement. The Primary Servicer shall not take
any action that the Master Servicer would be prohibited from taking under the Pooling and Servicing Agreement. The Primary Servicer
may not foreclose any Mortgage or, except as permitted by Section 3.01(c)(14) or (24) of this Agreement, grant any
modification, extension, waiver or amendment to any Mortgage Loan or Serviced Companion Loan.

 

     14

    

    

 

This
Agreement will be assumed by the Trustee if the Trustee has assumed the duties of the Master Servicer or by a successor Master
Servicer without cost or obligation to the assuming party or the Trust Fund, upon the assumption by such party of the obligations
of the Master Servicer pursuant to Section 7.02 of the Pooling and Servicing Agreement. In the event the Trustee or any
other Person becomes successor master servicer, the Trustee or such successor master servicer shall have the right to terminate
this Agreement with or without cause and without a fee. Notwithstanding the foregoing or any other contrary provision in the Pooling
and Servicing Agreement, the Trustee and any successor master servicer shall assume this Agreement and (i) the Primary Servicer’s
rights and obligations under this Agreement shall expressly survive a termination of the Master Servicer’s servicing rights
under the Pooling and Servicing Agreement; provided that this Agreement has not been terminated in accordance with its
provisions; (ii) any successor master servicer, including, without limitation, the Trustee (if it assumes the servicing obligations
of the Master Servicer) shall be deemed to automatically assume and agree to the this Agreement without further action upon becoming
the successor master servicer and (iii) the Pooling and Servicing Agreement may not be modified in any manner which would increase
the obligations or limit the rights of the Primary Servicer hereunder and/or under this Agreement, without the prior written consent
of the Primary Servicer (which consent shall not be unreasonably withheld).

 

(28)        Sections
3.24(a) and (d). The Primary Servicer shall take no action with respect to any mezzanine loan and shall forward any notice
or request received promptly to the Master Servicer. The Primary Servicer shall provide any reports and notices required under
Section 3.24(a) and (d) of the Pooling and Servicing Agreement to the Serviced Companion Noteholders and shall copy the
Master Servicer at ssreports@wellsfargo.com or such other electronic delivery reasonably agreed to by the Master Servicer
and Primary Servicer on any such reports or notices delivered to the Serviced Companion Noteholders. The Master Servicer, not
the Primary Servicer, will deal directly with the Serviced Companion Noteholders in connection with consulting with or obtaining
any necessary approval or consent from the Serviced Companion Noteholders; provided, however, that the Primary Servicer will reasonably
cooperate with the Master Servicer in such consultation or obtaining such consent and shall provide to the Master Servicer information
in the possession of the Primary Servicer reasonably requested by the Master Servicer to fulfill its obligations under Sections
3.24(a) and (d) of the Pooling and Servicing Agreement.

 

(29)        Section
3.25 is not incorporated herein. Notwithstanding any provision herein to the contrary, the Primary Servicer shall not make
any request to a Rating Agency for a Rating Agency Confirmation; all such requests shall be made by, and as determined necessary
by, the Master Servicer. The Primary Servicer shall not communicate (orally or in writing) with any Rating Agency regarding any
of the Mortgage Loan documents or any matter related to the Mortgage Loans, the Serviced Companion Loans, the related Mortgaged
Properties, the related Mortgagors or any other matters in connection with the Certificates or pursuant to this Agreement or the
Pooling and Servicing Agreement. The Primary Servicer agrees to comply (and to cause each and every subcontractor, vendor or agent
for the Primary Servicer and each of its officers, directors and employees to comply) with the provisions relating to communications
with the Rating Agencies set forth in this Section 3.01(c)(29) and the Pooling and Servicing Agreement and shall not deliver
to any Rating Agency any report, notice, statement, request for

 

     15

    

    

 

Rating
Agency Confirmation or other information the communication of which to the Rating Agencies is restricted by the Pooling and Servicing
Agreement.

 

All
information described in the immediately preceding paragraph will be provided by, and all such communications, responses and requests
described in the immediately preceding paragraph will be made by, the Master Servicer in accordance with the procedures required
by the Pooling and Servicing Agreement. To the extent that the Master Servicer is required to provide any information to, or communicate
with, any Rating Agency in accordance with its obligations under the Pooling and Servicing Agreement and such information or communication
is regarding the Mortgage Loans or the Serviced Companion Loans or the primary servicing by the Primary Servicer under this Agreement,
the Primary Servicer shall provide the information to the Master Servicer necessary for the Master Servicer to fulfill such obligations.

 

(31)        Sections
3.27 and 3.28. The Primary Servicer shall perform, on behalf of the Master Servicer, all of the obligations, as incorporated
in this Agreement, of the Companion Paying Agent with respect to the Serviced Companion Loans. The Primary Servicer shall promptly
notify the Master Servicer of any information that would impact the Companion Register.

 

(32)        Sections
3.29(c), (h) and (i). The Primary Servicer shall reasonably cooperate with the Master Servicer to provide all information
regarding the Serviced Whole Loan in the Primary Servicer’s possession to enable the Master Servicer to provide such information
as required pursuant to Section 3.29(c), (h) and (i) of the Pooling and Servicing Agreement.

 

(33)        Section
3.31 is not incorporated herein. The Primary Servicer shall not initiate or become involved in any claim or litigation that
falls within the scope of Trust-Related Litigation. The Primary Servicer shall promptly, but in any event no later than five (5)
Business Days of the Primary Servicer receiving service of such Trust-Related Litigation, provide written notice thereof to the
Master Servicer. Notwithstanding the foregoing, the Primary Servicer shall retain the right to make determinations relating to
claims or counter-claims against or on behalf of the Primary Servicer subject to Section 3.31(g) of the Pooling and Servicing
Agreement and the rights of the Special Servicer set forth therein, which shall apply to the Primary Servicer to the extent such
provisions apply to the Master Servicer.

 

(34)        Section
3.32.

 

(35)        Section
3.34. If at any time the Primary Servicer is a servicer as contemplated by Item 1108(a)(2) of Regulation AB, the Primary Servicer
shall notify the Master Servicer upon the occurrence of (i) a Servicing Officer of the Primary Servicer obtaining actual knowledge
that the Primary Servicer is or has become an Impermissible TPP Affiliate or (ii) the Primary Servicer receiving notice by any
party to the Pooling and Servicing Agreement, such Successor Third Party Purchaser, any Sponsor or any Underwriter or Initial
Purchaser that the Primary Servicer is or has become an Impermissible TPP Affiliate.

 

(36)        Section
4.01(k) is not incorporated herein. The Primary Servicer shall make withdrawals and payments from the Primary Servicer Companion
Distribution Account in the

 

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following
order of priority:

 

(i)          to
pay to the Primary Servicer, any amounts deposited by the Primary Servicer in the Primary Servicer Companion Distribution Account
not required to be deposited therein;

 

(ii)         to
pay to the Master Servicer, two (2) Business Days before the related Serviced Whole Loan Remittance Date, to the extent permitted
under the related Intercreditor Agreement and not otherwise previously reimbursed, any amounts payable or reimbursable to the
Trustee or the Certificate Administrator or any of their directors, officers, employees and agents, as the case may be, pursuant
to Section 8.05 of the Pooling and Servicing Agreement based on information provided by the Master Servicer to the Primary
Servicer no later than the Determination Date, to the extent any such amounts relate solely to the Serviced Whole Loan related
to the Serviced Companion Loans, and such amounts are to be paid by the related Serviced Companion Noteholder pursuant to the
related Intercreditor Agreement;

 

(iii)        to
pay, on the related Serviced Whole Loan Remittance Date, all amounts remaining in the Primary Servicer Companion Distribution
Account related to the Serviced Companion Loans to the related Serviced Companion Noteholder, in accordance with the related Intercreditor
Agreement; and

 

(iv)        to
clear and terminate the Primary Servicer Companion Distribution Account at the termination of this Agreement pursuant to Section
9.01 of the Pooling and Servicing Agreement.

 

The
Primary Servicer shall keep and maintain separate accounting records, on a loan-by-loan basis, reflecting amounts allocable to
the Serviced Companion Loans, and on a property-by-property basis when appropriate, for the purpose of justifying any withdrawal,
debit or credit from the Primary Servicer Companion Distribution Account. Upon reasonable written request, the Primary Servicer
shall provide to the Master Servicer a copy of such records.

 

Any
Late Collections received by the Primary Servicer from the related Mortgagor that are allocable to a Serviced Companion Loan (or,
if such Serviced Companion Loan has been securitized, reimbursable to the Other Master Servicer or Other Trustee under the related
Other PSA) shall be remitted by the Primary Servicer to the holder thereof (or such Other Master Servicer or Other Trustee) within
one (1) Business Day of receipt of properly identified and available funds; provided, that to the extent any such amounts are
received after 3:00 p.m. Eastern time on any given Business Day, the Primary Servicer shall use commercially reasonable efforts
to remit such Late Collections to such party within one (1) Business Day of receipt of properly identified and available funds
but, in any event, the Primary Servicer shall remit such amounts within two (2) Business Days of receipt of properly identified
and available funds.

 

(37)        Section
4.03 is not incorporated herein. The Primary Servicer shall not be permitted to make P&I Advances.

 

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(38)        Section
6.01(a). Section 6.01(a)(i) of the Pooling and Servicing Agreement shall be deemed modified to read “The Primary
Servicer is a national banking association, duly organized, validly existing and in good standing under the laws of the United
States of America, and the Primary Servicer is in compliance with the laws of each State in which any Mortgaged Property is located
to the extent necessary to perform its obligations under this Agreement.” The Primary Servicer hereby represents and warrants,
as of the date hereof, that (i) each insurance policy and fidelity bond referenced in Section 3.07(c) of the Pooling and
Servicing Agreement names the Master Servicer as a loss payee; (ii) the Primary Servicer is authorized to transact business in
the state or states in which the Mortgaged Properties for the Mortgage Loans are situated, if and to the extent required by applicable
law to the extent necessary to ensure the enforceability of the Mortgage Loans or compliance with its obligations under this Agreement
and the Master Servicer’s obligations under the Pooling and Servicing Agreement; and (iii) the Primary Servicer is not,
to its actual knowledge, a Risk Retention Affiliate of the Successor Third Party Purchaser.

 

(39)        Sections
11.01, 11.02, 11.03, 11.04, 11.05, 11.06, 11.07, 11.09, 11.10, 11.11, 11.12 and 11.15. The Primary Servicer shall cooperate
fully with the Master Servicer and deliver to the Master Servicer any and all statements, reports, certifications, records and
any other information in its possession and necessary in the good faith determination of the Master Servicer, the Certificate
Administrator, the Trustee or the Depositor to permit the Depositor or Other Depositor, as applicable, to comply with the provisions
of Regulation AB and the Master Servicer to comply with its obligations under Article XI of the Pooling and Servicing Agreement,
together with such disclosures relating to the Primary Servicer, or the servicing of the Mortgage Loans and/or Serviced Companion
Loans, reasonably believed by the Depositor, the related Other Depositor, the Certificate Administrator or the Master Servicer
to be necessary in order to effect such compliance. For purposes of this Section 3.01(c)(39) of this Agreement, references
to the Trustee, the Certificate Administrator, the Depositor, the Other Depositor, the Other Trustee or the Other Certificate
Administrator in Article XI of the Pooling and Servicing Agreement shall not be deemed to be references to the Master Servicer
but shall remain references to the Trustee, the Certificate Administrator, the Depositor, the Other Depositor, the Other Trustee
or the Other Certificate Administrator, as applicable; provided that the Primary Servicer shall copy the Master Servicer on any
notice, certificate or information provided to the Trustee, the Certificate Administrator, the Depositor, the Other Depositor,
the Other Trustee or the Other Certificate Administrator pursuant to this Section 3.01(c)(39) of this Agreement.

 

With
respect to any period that the Primary Servicer is a Servicing Function Participant or a servicer as contemplated by Item 1108(a)(2)
of Regulation AB, the Primary Servicer shall perform all obligations under Section 11.02 applicable to a servicer as contemplated
by Item 1108(a)(2) of Regulation AB (including, without limitation, any obligation or duty the Master Servicer is required under
Section 11.02 to cause (or use commercially reasonable efforts to cause) a Servicing Function Participant or such a servicer
as contemplated by Item 1108(a)(2) of Regulation AB to perform).

 

Any
Additional Form 10-D Disclosure and related Additional Disclosure Notification required to be delivered by the Primary Servicer
shall be delivered to the Master Servicer (and, if

 

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the
Primary Servicer is an Additional Servicer or a Servicing Function Participant, also to the Depositor, the Certificate Administrator,
each Other Depositor and each Other Certificate Administrator (to the extent the notice and/or information relates to a Serviced
Companion Loan or a party that services, specially services or is trustee or custodian for a Serviced Companion Loan)) within
the time provided in Section 11.04 of the Pooling and Servicing Agreement. The Primary Servicer shall reasonably cooperate
with the Master Servicer and the Depositor pursuant to Section 11.04(d) of the Pooling and Servicing Agreement with respect
to any CREFC® Schedule AL File provided by the Primary Servicer.

 

Any
Additional Form 10-K Disclosure and related Additional Disclosure Notification required to be delivered by the Primary Servicer
shall be delivered to the Master Servicer (and, if the Primary Servicer is an Additional Servicer or a Servicing Function Participant,
also to the Depositor, the Certificate Administrator, each Other Depositor and each Other Certificate Administrator (to the extent
the notice and/or information relates to a Serviced Companion Loan or a party that services, specially services or is trustee
or custodian for a Serviced Companion Loan)) on or before the fifth (5th) Business Day preceding March 1st
of each year, commencing February 22, 2019.

 

The
Primary Servicer (without regard to whether the Primary Servicer is a Servicing Function Participant, a Reporting Servicer or
Additional Servicer) shall provide a Performance Certification described in Section 11.06 of the Pooling and Servicing
Agreement (on which the Master Servicer and its officers, directors and Affiliates, in addition to the Certification Parties,
can reasonably rely) to the Master Servicer on or before the fifth (5th) Business Day preceding March 1st
of each year, commencing February 22, 2019. If the Primary Servicer is a Servicing Function Participant, such Performance Certification
shall also be provided to each affected Certifying Person by the time required by the Pooling and Servicing Agreement, and if
the Primary Servicer is not a Servicing Function Participant, such Performance Certification shall be delivered only to the Master
Servicer. In addition, the Primary Servicer (a) shall provide such information and assistance as may be reasonably required to
cooperate with the Master Servicer in complying with Section 11.06 of the Pooling and Servicing Agreement and (b) shall
cooperate with the Master Servicer’s reasonable requests in performing its due diligence for its certification under Section
11.06 of the Pooling and Servicing Agreement.

 

Any
Form 8-K Disclosure Information and related Additional Disclosure Notification required to be delivered by the Primary Servicer
shall be delivered to the Master Servicer, the Depositor, the Certificate Administrator, each Other Depositor and each Other Certificate
Administrator (to the extent the notice and/or information relates to a Serviced Companion Loan or a party that services, specially
services or is trustee or custodian for a Serviced Companion Loan) within the time provided in Section 11.07 of the Pooling
and Servicing Agreement.

 

The
Primary Servicer (without regard to whether the Primary Servicer is an Additional Servicer or Servicing Function Participant)
shall deliver its Officer’s Certificate required by Section 11.09 of the Pooling and Servicing Agreement to the Master
Servicer on or before the fifth (5th) Business Day preceding March 1st of each year, commencing February
22, 2019. If the Primary Servicer is an Additional Servicer or Servicing Function Participant, the Primary Servicer shall also
deliver such Officer’s Certificate to the Certificate Administrator, the Trustee,

 

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Depositor,
the 17g-5 Information Provider, each Other Depositor and each Other Certificate Administrator (to the extent such item and/or
information relates to a party that services, specially services or is trustee or custodian for a Serviced Companion Loan) within
the time provided in Section 11.09, and if the Primary Servicer is not an Additional Servicer or Servicing Function Participant,
such Officer’s Certificate shall be delivered only to the Master Servicer.

 

The
Primary Servicer (without regard to whether the Primary Servicer is a Servicing Function Participant, a Reporting Servicer or
Additional Servicer) shall deliver the items required under Sections 11.10 and 11.11 of the Pooling and Servicing
Agreement regarding itself (the “report on an assessment of compliance with Relevant Servicing Criteria” and “accountants’
report”) to the Master Servicer on or before the fifth (5th) Business Day preceding March 1st of each
year, commencing February 22, 2019. If the Primary Servicer is a Servicing Function Participant, a Reporting Servicer or Additional
Servicer, the report on an assessment of compliance with Relevant Servicing Criteria and accountants’ report shall also
be delivered to the Certificate Administrator, the Trustee, Depositor, the 17g-5 Information Provider, each Other Depositor and
each Other Certificate Administrator (to the extent such item and/or information relates to a party that services, specially services
or is trustee or custodian for a Serviced Companion Loan) within the time provided in Sections 11.10 and 11.11 of
the Pooling and Servicing Agreement, and if the Primary Servicer is not an Servicing Function Participant, a Reporting Servicer
or Additional Servicer, the report on an assessment of compliance with Relevant Servicing Criteria and accountants’ report
shall be delivered only to the Master Servicer. For the avoidance of doubt, if the Primary Servicer’s report on assessment
of compliance with Relevant Servicing Criteria or the related accountants’ report identifies any material instance of noncompliance
with the Relevant Servicing Criteria, such reports shall include a discussion of whether the identified instance was determined
to have involved the servicing of the Mortgage Loans and any steps taken to remedy such identified instance of noncompliance to
the extent related to its activities with respect to asset-backed securities transactions taken as a whole involving the Primary
Servicer and that are backed by the same asset-type backing the Certificates.

 

Section
11.12 of the Pooling and Servicing Agreement shall be incorporated herein and apply to the Primary Servicer for so long as
the Primary Servicer is a Servicing Function Participant or an Additional Servicer to the same extent such section applies to
the Master Servicer. The Primary Servicer shall indemnify and hold harmless the Master Servicer, each Certification Party and
any director, officer, representative, agent, member, manager, employee or Affiliate of the Master Servicer or any Certification
Party, from and against any expenses, losses, claims, damages and other liabilities, including without limitation the costs of
investigation, legal defense and any amounts paid in settlement of any claim or litigation arising out of subsections (i)-(iii)
in the first paragraph of Section 11.12 of the Pooling and Servicing Agreement. To the extent the Primary Servicer is an
Affected Reporting Party, the Primary Servicer shall comply with the requirements set forth in Section 11.12 and incorporated
herein by reference, including, but not limited to, obtaining the consent of the Depositor and the Master Servicer (in each case,
which consent shall not be unreasonably denied, withheld or delayed), to directly communicate with the Commission or its staff
and negotiate a response and/or resolution with the Commission or its staff and copying the Master Servicer on all material communications
with the Commission or its staff. All reasonable out-of-pocket costs and expenses incurred by

 

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the
Depositor or any Other Depositor and the Master Servicer (including reasonable legal fees and expenses of outside counsel to the
Depositor or any Other Depositor and the Master Servicer) in connection with the foregoing and any amendments to any reports filed
with the Commission or its staff therewith shall be promptly paid by the Primary Servicer upon receipt of an itemized invoice
from the Depositor, any Other Depositor and/or the Master Servicer, as applicable. Upon resolution with the Commission, the Primary
Servicer shall promptly provide, to each Other Depositor the appropriate revised reports, updated or revised information contained
in any report filed by the Other Depositor under the Reporting Requirements, or any updated or revised material communications
in connection with the response and/or resolution with the Commission or its staff, if and to the extent such reports, information
and/or communications relate to information that was previously provided to the Other Depositor and would reasonably be expected
to be contained in a report filed by the Other Depositor under the Reporting Requirements of an Other Pooling and Servicing Agreement.

 

The
Primary Servicer shall reasonably cooperate with the Master Servicer and each other party listed in Section 11.15 of the
Pooling and Servicing Agreement in accordance with Section 11.15 of the Pooling and Servicing Agreement. If any Serviced
Companion Loan constitutes a Serviced Securitized Companion Loan, the Primary Servicer shall provide to the Master Servicer all
information, reports, statements and certificates with respect to the Primary Servicer and such Serviced Companion Loan comparable
to any information, reports, statements or certificates required to be provided by the Master Servicer pursuant to Section
11.15 of the Pooling and Servicing Agreement, even if the Primary Servicer is not otherwise required to provide such information,
reports or certificates to any Person in order to comply with Regulation AB. Such information, reports or certificates shall be
provided to the Master Servicer no later than five (5) Business Days prior to the date on which the Master Servicer is required
to deliver its comparable information, reports, statements or certificates pursuant to Section 11.15 of the Pooling and
Servicing Agreement.

 

Subject
to other provisions of this Agreement restricting the right of the Primary Servicer to retain subservicers or subcontractors,
the provisions of Article XI regarding retaining a “Sub--Servicer,” “Subcontractor,” “Additional
Servicer” or “Servicing Function Participant” shall be applicable to any sub-servicer, subcontractor or agent
hired by the Primary Servicer to perform any of its obligations hereunder and the Primary Servicer shall comply with such provisions.

 

The
Primary Servicer shall indemnify and hold harmless each Certification Party from and against any losses, damages, penalties, fines,
forfeitures, reasonable legal fees, claims, fees and expenses and related costs, judgments and other costs and expenses incurred
by such Certification Party arising out of (a) a breach of its obligations to provide any of the annual compliance statements
or annual assessment of compliance with the servicing criteria or attestation reports pursuant to this Agreement, (b) negligence,
bad faith or willful misconduct on its part in the performance of its obligations, (c) any failure by it, as a Servicer (as defined
in Section 11.02(b) of the Pooling and Servicing Agreement) to identify a Servicing Function Participant pursuant to Section
11.02(c) of the Pooling and Servicing Agreement, or (d) delivery of any Deficient Exchange Act Deliverable.

 

If
the indemnification provided for in this Section 3.01(c)(39) is unavailable or

 

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insufficient
to hold harmless any Certification Party, the Master Servicer, the Depositor or any employee, director or officer of the Depositor,
then the Primary Servicer shall contribute to the amount paid or payable to the indemnified party as a result of the losses, claims,
damages or liabilities of the indemnified party in such proportion as is appropriate to reflect the relative fault of the indemnified
party on the one hand and the Primary Servicer on the other in connection with a breach of the Primary Servicer’s obligations
pursuant to this Section 3.01(c)(39).

 

(40)        Sections
12.01(b)(i)-(ii). The Primary Servicer shall provide all reasonable cooperation (with respect to information regarding the
Mortgage Loans in the Primary Servicer’s possession) to enable the Master Servicer to provide the information required pursuant
to Sections 12.01(b)(i)-(ii) of the Pooling and Servicing Agreement.

 

Section
3.02     Merger or Consolidation of the Primary Servicer.

 

The
Primary Servicer shall keep in full effect its existence, rights and franchises as a national banking association under the laws
of the United States of America. The Primary Servicer shall continue to be authorized to transact business in the state or states
in which the Mortgaged Properties for the Mortgage Loans and the Serviced Companion Loans are situated, if and to the extent required
by applicable law, except where the failure to so comply would not adversely affect the Primary Servicer’s ability to perform
its obligations in accordance with the terms of this Agreement.

 

Any
Person into which the Primary Servicer may be merged or consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Primary Servicer shall be a party, or any Person succeeding to all or substantially all of the business
of the Primary Servicer, shall be the successor of the Primary Servicer hereunder, without the execution or filing of any paper
or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding; provided, however,
that the successor or surviving Person (i) must be a business entity whose business includes the servicing of mortgage loans and
shall be authorized to transact business in the state or states in which the related Mortgaged Properties it is to service are
situated to the extent required by applicable law, (ii) must be an approved servicer of multifamily mortgage loans for FHLMC or
FNMA or a HUD-approved servicer, (iii) must be acceptable to the Master Servicer, which consent may not be unreasonably withheld,
and (iv) shall have assumed in writing the obligations of the Primary Servicer under this Agreement. Notwithstanding the foregoing,
the Primary Servicer may not remain the Primary Servicer under this Agreement after (x) being merged or consolidated with or into
any Person that is a Prohibited Party, or (y) transferring all or substantially all of its assets to any Person if such Person
is a Prohibited Party, except to the extent that (i) the Primary Servicer is the surviving entity of such merger, consolidation
or transfer and has been and continues to be in compliance with its Regulation AB reporting obligations hereunder or under the
Pooling and Servicing Agreement or (ii) the Depositor consents to such merger, consolidation or transfer, which consent shall
not be unreasonably withheld.

 

Section
3.03     Limitation on Liability of the Primary Servicer and Others.

 

Neither
the Primary Servicer nor any of the officers, employees or affiliates, agents of the

 

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Primary
Servicer shall be under any liability to the Master Servicer any action taken, or for refraining from the taking of any action,
in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that this provision shall not protect
the Primary Servicer or any such person against any breach of representations or warranties made herein, or against any liability
which would otherwise be imposed by reason of willful misconduct, bad faith, fraud or negligence (or by reason of any specific
liability imposed hereunder for a breach of the Servicing Standard) in the performance of its obligations or duties hereunder,
or by reason of negligent disregard of such obligations and duties. The Primary Servicer and any officer, employee or agent of
the Primary Servicer may rely in good faith on any document of any kind which, prima facie, is properly executed and submitted
by any Person respecting any matters arising hereunder. The Primary Servicer shall not be under any obligation to appear in, prosecute
or defend any legal action unless such action relates to its respective duties under this Agreement and which in its opinion does
not expose it to any expense or liability not recoverable from the Trust Fund; provided, however, the Primary Servicer
may, with the consent of the Master Servicer, undertake any such action, proceeding, hearing or examination that it may deem necessary
or desirable in respect to this Agreement and the rights and duties of the parties hereto. In such event, to the extent that the
legal expenses and costs of such action, proceeding, hearing or examination and any liability resulting therefrom are reimbursable,
and are reimbursed to the Master Servicer, by the Trust Fund pursuant to the Pooling and Servicing Agreement, the Primary Servicer
shall be entitled to be reimbursed therefor from the Master Servicer upon written demand. To the extent provided in Section
6.04 of the Pooling and Servicing Agreement, the Primary Servicer shall be indemnified and held harmless by the Trust Fund
against any loss, liability or expense, incurred in connection with any claim, loss, penalty, fine, foreclosure, judgment, liability
or legal action relating to this Agreement or the Certificates, other than any loss, liability or expense (including legal fees
and expenses) incurred by the Primary Servicer by reason of willful misconduct, bad faith, fraud or negligence in the performance
of duties hereunder or by reason of negligent disregard of obligations and duties hereunder. The Primary Servicer shall not have
any rights of indemnification out of the Trust Fund except through the Master Servicer as described above and, in each case, to
the full extent that the Master Servicer is permitted to indemnification from the Trust Fund under the Pooling and Servicing Agreement.

 

Section
3.04     Primary Servicer Not to Resign.

 

The
Primary Servicer shall not resign from the obligations and duties hereby imposed on it except by sixty (60) days prior written
notice to the Master Servicer, or upon the determination that its duties hereunder are no longer permissible under applicable
law and such incapacity cannot be cured by the Primary Servicer. Any such determination permitting the resignation of the Primary
Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to the Master Servicer, which Opinion of Counsel
shall be in form and substance acceptable to the Master Servicer.

 

Section
3.05     No Transfer or Assignment of Servicing.

 

With
respect to the responsibility of the Primary Servicer to service the Mortgage Loans and the Serviced Companion Loans hereunder,
the Primary Servicer acknowledges that the Master Servicer has acted in reliance upon the Primary Servicer’s independent
status, the

 

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adequacy
of its servicing facilities, plant, personnel, records and procedures, its integrity, reputation and financial standing and the
continuance thereof. Without in any way limiting the generality of this Section 3.05, the Primary Servicer shall not either
assign or transfer this Agreement or the servicing hereunder nor delegate its rights or duties hereunder or any portion thereof
(except as allowed by Section 3.01(c)(27) of this Agreement), or sell or otherwise dispose of all or substantially all
of its property or assets, without the prior written approval of the Master Servicer, which consent will not be unreasonably withheld
or delayed. Notwithstanding the foregoing, prior to any assignment or transfer by the Primary Servicer of this Agreement or the
servicing hereunder (the “Primary Servicing Rights”), the Primary Servicer shall allow the Master Servicer
an opportunity to bid on the purchase of such Primary Servicing Rights. The Primary Servicer may also solicit bids from any other
parties independent of the Primary Servicer. If the Master Servicer offers the highest purchase price for such Primary Servicing
Rights, then the Master Servicer shall be provided the opportunity to purchase such Primary Servicing Rights for such purchase
price.

 

Section
3.06     Indemnification.

 

The
Master Servicer and the Primary Servicer each agrees to and hereby does indemnify and hold harmless the Master Servicer, in the
case of the Primary Servicer, and the Primary Servicer, in the case of the Master Servicer (including any of their partners, directors,
officers, employees or agents) from and against any and all claims, losses, damages, penalties, fines, forfeitures, reasonable
legal fees and related costs, judgments, and any other costs, liabilities, fees and expenses that the Master Servicer, in the
case of the Primary Servicer, and the Primary Servicer, in the case of the Master Servicer, may sustain arising from or as a result
of any willful misconduct, bad faith, fraud or negligence of the Master Servicer or Primary Servicer, as applicable, in the performance
of its obligations and duties under this Agreement or by reason of negligent disregard by the Master Servicer or Primary Servicer,
as applicable, of its duties and obligations hereunder or by reason of breach of any representations or warranties made herein;
provided, that such indemnity shall not cover indirect or consequential damages. Each indemnified party hereunder shall give prompt
written notice to the indemnitor of matters which may give rise to liability of such indemnitor hereunder; provided, however,
that failure to give such notice shall not relieve the indemnitor of any liability except to the extent of actual prejudice. Section
3.06 of this Agreement shall survive the termination of this Agreement and the termination or resignation of the Master Servicer
or the Primary Servicer.

 

ARTICLE
IV

 

DEFAULT

 

Section
4.01     Events of Default.

 

In
case one or more of the following events (each, an “Event of Default”) by the Primary Servicer shall occur
and be continuing, that is to say:

 

(a)          any
failure by the Primary Servicer to deposit into the Primary Servicer Collection Account, the Primary Servicer Companion Distribution
Account or any Servicing

 

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Account,
or to deposit into, or to remit to the Master Servicer for deposit into, the Collection Account or remit to the Serviced Companion
Noteholders on the dates and at the times required by this Agreement, any amount required to be so deposited or remitted under
this Agreement; provided, however, that the Primary Servicer will have one (1) Business Day to remedy a failure to make such a
deposit or remittance on the date and at the time required by this Agreement; or

 

(b)          any
failure on the part of the Primary Servicer to (i) timely provide to the Servicer the certification called for on Exhibit
E attached hereto as required by this Agreement, or (ii) timely provide to the Master Servicer the Collection Report which
failure continues unremedied for one (1) Business Day; or

 

(c)          the
Primary Servicer shall fail three (3) times within any one (1) year period to timely provide to the Master Servicer any Collection
Report, CREFC® Loan Periodic Update File, CREFC® Schedule AL File, CREFC® Property
File, CREFC® Financial File, CREFC® Comparative Financial Status Report, CREFC® Loan
Level Reserve/LOC Report, CREFC® Delinquent Loan Status Report, CREFC® Servicer Watch List, CREFC®
NOI Adjustment Worksheet, the CREFC® Total Loan Report or CREFC® Operating Statement Analysis
Report within one (1) Business Day following the date on which it is due; or

 

(d)          any
failure by the Primary Servicer duly to observe or perform in any material respect any of its other covenants or obligations under
this Agreement (other than those addressed in another clause of this Section 4.01), which failure continues unremedied
for a period of twenty-five (25) days (or (i) with respect to any year that a report on Form 10-K is required to be filed, three
(3) Business Days in the case of the Primary Servicer’s obligations or (ii) 10 days in the case of failure to pay the premium
for any insurance policy required to be force placed by the Primary Servicer pursuant to this Agreement or in any event such reasonable
shorter period of time as is necessary to avoid the commencement of foreclosure proceedings for any lien relating to unpaid real
estate taxes or assessments or a lapse in any required insurance coverage) after written notice of such failure, requiring the
same to be remedied, has been given to the Primary Servicer by the Master Servicer; provided, however, if that failure (other
than a failure that results in the commencement of foreclosure proceedings for any lien relating to unpaid real estate taxes or
assessments or a lapse in any required insurance coverage) is capable of being cured and the Primary Servicer has provided the
Master Servicer with an Officer’s Certificate certifying that it has diligently pursued, and is continuing to diligently
pursue, a full cure, such twenty-five (25) day period shall be extended for an additional thirty (30) days; or

 

(e)          any
breach on the part of the Primary Servicer of any representation or warranty contained in Section 6.01(a) of the Pooling
and Servicing Agreement as incorporated herein, which materially and adversely affects the interests of the Master Servicer or
any Class of Certificateholders or any Companion Noteholder and which continues unremedied for a period of thirty (30) days after
the date on which notice of such breach, requiring the same to be remedied, shall have been given to the Primary Servicer by the
Master Servicer; provided, however, if that breach is capable of being cured and the Primary Servicer has provided the Master
Servicer with an Officer’s Certificate certifying that it has diligently pursued, and is continuing to diligently pursue,
a full cure, such thirty (30) day period shall be extended for an

 

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additional
thirty (30) days; or

 

(f)          a
decree or order of a court or agency or supervisory authority having jurisdiction in the premises in an involuntary case under
any present or future federal or state bankruptcy, insolvency or similar law for the appointment of a conservator, receiver, liquidator,
trustee or similar official in any bankruptcy, insolvency, readjustment of debt, marshaling of assets and liabilities or similar
proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against the Primary Servicer and such
decree or order shall have remained in force undischarged, undismissed or unstayed for a period of 60 days; or

 

(g)          the
Primary Servicer shall consent to the appointment of a conservator, receiver, liquidator, trustee or similar official in any bankruptcy,
insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings of or relating to the Primary Servicer
or of or relating to all or substantially all of its property; or

 

(h)          the
Primary Servicer shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage
of any applicable bankruptcy, insolvency or reorganization statute, make an assignment for the benefit of its creditors, voluntarily
suspend payment of its obligations or take any corporate action in furtherance of the foregoing; or

 

(i)           the
Primary Servicer shall assign or transfer or attempt to assign or transfer all or part of its rights and obligations hereunder
except as permitted by this Agreement; or

 

(j)           the
Primary Servicer is removed from S&P’s Select Servicer List as a U.S. Commercial Mortgage Primary Servicer and is not
restored to such status on such list within 60 days; or

 

(k)          DBRS
has (i) qualified, downgraded or withdrawn its rating or ratings of one or more Classes of Certificates, or (ii) placed one or
more Classes of Certificates on “watch status” in contemplation of possible rating downgrade or withdrawal (and such
action shall not have been withdrawn within 60 days of such event) and, in the case of either of clause (i) or (ii), publicly
citing servicing concerns with the Primary Servicer as the sole or a material factor in such rating action; or

 

(l)           the
Primary Servicer is no longer rated at least “CPS3” by Fitch and the Primary Servicer is not reinstated to at least
that rating within sixty (60) days of the delisting; or

 

(m)         (1) the
Primary Servicer fails to deliver by the due date any Exchange Act reporting items required to be delivered to the Master Servicer,
the Certificate Administrator or the Depositor under the Pooling and Servicing Agreement or under this Agreement or to the master
servicer under any other pooling and servicing agreement that the Depositor is a party to, or (2) the Primary Servicer fails to
perform in any material respect any of its covenants or obligations contained in this Agreement regarding creating, obtaining
or delivering any Exchange Act reporting items required under this Agreement or for any party to the Pooling and Servicing Agreement
to perform its obligations under Article XI or under the Exchange Act reporting items required under any other pooling
and servicing agreement that the Depositor is a

 

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party
to.

 

If
any Event of Default shall occur and be continuing, then, and in each and every such case, so long as such Event of Default shall
not have been remedied, the Master Servicer may terminate, by notice in writing to the Primary Servicer, all of the rights and
obligations of the Primary Servicer as Primary Servicer under this Agreement and in and to the Mortgage Loans and the Serviced
Companion Loans and the proceeds thereof. From and after the receipt by the Primary Servicer of such written notice, all authority
and power of the Primary Servicer under this Agreement, whether with respect to the Mortgage Loans, the Serviced Companion Loans
or otherwise, shall pass to and be vested in the Master Servicer pursuant to and under Section 4.01 of this Agreement,
and, without limitation, the Master Servicer is hereby authorized and empowered to execute and deliver, on behalf of and at the
expense of the Primary Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such notice of termination, whether to complete the
transfer and endorsement or assignment of the Mortgage Loans, the Serviced Companion Loans and related documents, or otherwise.
The Primary Servicer hereby acknowledges that the Companion Noteholders shall be entitled to direct the Master Servicer to replace
the Primary Servicer with a successor sub-servicer for the Serviced Whole Loan pursuant to Section 7.01(f) of the Pooling
and Servicing Agreement (the “Successor Sub-Servicer”) following an Event of Default with respect to such Serviced
Whole Loan. The Primary Servicer agrees that if it is terminated pursuant to Section 4.01 of this Agreement, it shall promptly
(and in any event no later than five (5) Business Days subsequent to its receipt of the notice of termination) provide the Master
Servicer or the Successor Sub-Servicer, if applicable, with all documents and records (including, without limitation, those in
electronic form) requested by it to enable it to assume the Primary Servicer’s functions hereunder, and shall cooperate
with the Master Servicer or the Successor Sub-Servicer, if applicable, in effecting the termination of the Primary Servicer’s
responsibilities and rights hereunder and the assumption by a successor of the Primary Servicer’s obligations hereunder,
including, without limitation, the transfer within one (1) Business Day to the Master Servicer or the Successor Sub-Servicer,
if applicable, for administration by it of all cash amounts which shall at the time be or should have been credited by the Primary
Servicer to the Primary Servicer Collection Account, the Collection Account, any Servicing Account, or any REO Account, or thereafter
be received with respect to the Mortgage Loans, the Serviced Companion Loans or any REO Property (provided, however, that the
Primary Servicer shall continue to be entitled to receive all amounts accrued or owing to it under this Agreement on or prior
to the date of such termination, and it and its directors, officers, employees and agents shall continue to be entitled to the
benefits of Section 3.03 of this Agreement notwithstanding any such termination).

 

In
addition to any other rights the Master Servicer may have hereunder, if the Primary Servicer fails to remit to the Master Servicer
any amounts when required to be remitted hereunder, the Primary Servicer shall pay to the Master Servicer interest on the amount
of such late remittance at the Prime Rate, applied on a per diem basis for each day such remittance is late (i.e., said per annum
rate divided by 365 multiplied by the number of days late); but in no event shall such interest be greater than the maximum amount
permitted by law.

 

Section
4.02     Waiver of Defaults.

 

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The
Master Servicer may waive any default by the Primary Servicer in the performance of its obligations hereunder and its consequences.
Upon any such waiver of a past default, such default shall cease to exist, and any Event of Default arising therefrom shall be
deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to any subsequent or other default
or impair any right consequent thereon except to the extent expressly so waived.

 

Section
4.03     Other Remedies of Master Servicer.

 

During
the continuance of any Event of Default, so long as such Event of Default shall not have been remedied, the Master Servicer, in
addition to the rights specified in Section 4.01 of this Agreement, shall have the right, in its own name, to take all
actions now or hereafter existing at law, in equity or by statute to enforce its rights and remedies (including the institution
and prosecution of all judicial, administrative and other proceedings and the filing of proofs of claim and debt in connection
therewith). Except as otherwise expressly provided in this Agreement, no remedy provided for by this Agreement shall be exclusive
of any other remedy, and each and every remedy shall be cumulative and in addition to any other remedy and no delay or omission
to exercise any right or remedy shall impair any such right or remedy or shall be deemed to be a waiver of any Event of Default.

 

ARTICLE
V

 

TERMINATION

 

Section
5.01     Termination.

 

Except
as otherwise specifically set forth herein, the rights, obligations and responsibilities of the Primary Servicer shall terminate
(without payment of any penalty or termination fee): (i) upon the later of the final payment or other liquidation (or any advance
with respect thereto) of the last Mortgage Loan and the disposition of all REO Property and the remittance of all funds due hereunder;
(ii) by mutual consent of the Primary Servicer and the Master Servicer in writing; (iii) pursuant to Section 5.02 of this
Agreement; (iv) at the option of any purchaser of one or more Mortgage Loans pursuant to the Pooling and Servicing Agreement,
upon such purchase and only with respect to such purchased Mortgage Loan or Mortgage Loans, subject to the Primary Servicer’s
rights to retain any accrued and unpaid fees and expenses; or (v) upon termination of the Pooling and Servicing Agreement.

 

Section
5.02     Termination With Cause.

 

The
Master Servicer may, at its sole option, terminate any rights the Primary Servicer may have hereunder with respect to any or all
of the Mortgage Loans or the Serviced Companion Loans, as provided in Section 4.01 of this Agreement upon the occurrence
of an Event of Default. For the avoidance of doubt, the Primary Servicer will no longer perform the obligations of the Master
Servicer as Companion Paying Agent if terminted as the Primary Servicer with respect to the Serviced Whole Loan.

 

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In
addition, the Master Servicer shall terminate any rights the Primary Servicer may have hereunder with respect to the Mortgage
Loans and the Serviced Companion Loans if at any time the Primary Servicer is a Risk Retention Affiliate of the Successor Third
Party Purchaser and the Primary Servicer is a servicer as contemplated by Item 1108(a)(2) of Regulation AB pursuant to Section
3.20 of the Pooling and Servicing Agreement.

 

Any
notice of termination shall be in writing and delivered to the Primary Servicer as provided in Section 6.05 of this Agreement.

 

Section
5.03     Termination of Duties with Respect to Specially Serviced Loans.

 

At
such time as any Mortgage Loan or Serviced Companion Loan becomes a Specially Serviced Loan, the obligations and duties of the
Primary Servicer set forth herein with respect to such Specially Serviced Loan that are required to be performed by the Special
Servicer under the Pooling and Servicing Agreement shall cease in accordance with Section 3.01(c) of this Agreement. The
Primary Servicer shall continue to perform all of its duties hereunder with respect to the Specially Serviced Loans to the extent
set forth in Section 3.01 of this Agreement. If a Specially Serviced Loan becomes a Corrected Loan, the Primary Servicer
shall commence servicing such Corrected Loan pursuant to the terms of this Agreement.

 

ARTICLE
VI

 

MISCELLANEOUS

 

Section
6.01     Successor to the Primary Servicer.

 

Contemporaneously
with the termination of the Primary Servicer’s responsibilities and duties under this Agreement pursuant to Section 3.04,
4.01, 5.01 or 5.02 of this Agreement, the Master Servicer shall (i) succeed to and assume all of the Primary
Servicer’s responsibilities, rights, duties and obligations under this Agreement, or (ii) appoint a successor which satisfies
the criteria for a successor Primary Servicer in Section 3.02 of this Agreement and which shall succeed to all rights and
assume all of the responsibilities, duties and liabilities of the Primary Servicer under this Agreement accruing following the
termination of the Primary Servicer’s responsibilities, duties and liabilities under this Agreement.

 

Section
6.02     Financial Statements.

 

The
Primary Servicer shall, upon the request of the Master Servicer, make available its publicly available financial statements and
other records relevant to the performance of the Primary Servicer’s obligations hereunder.

 

Section
6.03     Closing.

 

The
closing for the commencement of the Primary Servicer to perform the servicing responsibilities under this Agreement with respect
to the Mortgage Loans and the Serviced Companion Loans shall take place on the Closing Date. At the Master Servicer’s option,
the

 

     29

    

    

 

closing
shall be either by telephone, confirmed by letter or wire as the parties shall agree, or conducted in person, at such place as
the parties shall agree.

 

The
closing shall be subject to the execution and delivery of the Pooling and Servicing Agreement by the parties thereto.

 

Section
6.04     Closing Documents.

 

The
Closing Documents shall consist of all of the following documents:

 

(a)           to
be provided by the Primary Servicer:

 

(1)           this
Agreement executed by the Primary Servicer;

 

(2)           an
Officer’s Certificate of the Primary Servicer, dated the Closing Date and in the form of Exhibit B hereto,
including all attachments thereto;

 

(3)           Reserved;
and

 

(4)           the
account certifications in the form of Exhibit F hereto required by Section 3.01(c)(4) and (7) of this
Agreement, fully completed; and

 

(b)          to
be provided by the Master Servicer:

 

(1)           this
Agreement executed by the Master Servicer; and

 

(2)           the
Mortgage Loan Schedule, with one copy to be attached to each counterpart of this Agreement as Exhibit A hereto;
and

 

(3)           the
Pooling and Servicing Agreement substantially in the form of Exhibit C hereto.

 

Section
6.05     Notices.

 

Except
as provided herein, all demands, notices, consents and communications hereunder shall be in writing and shall be deemed to have
been duly given when delivered to the following addresses:

 

		(i)	if
                                         to the Master Servicer:

 

Wells
Fargo Bank, National Association Commercial Mortgage Servicing

Three
Wells Fargo

401
S. Tryon Street, 8th Floor

MAC
D1050-084

 

     30

    

    

 

Charlotte,
North Carolina 28202

Reference:
MSC 2018-H3 Asset Manager

 

with
a copy to:

 

Wells
Fargo Bank, National Association

Legal
Department

301
South College St.

D1053-300

Charlotte,
North Carolina 28202

Reference:
Commercial Mortgage Servicing Legal Support

 

With
a copy to:

 

K&L
Gates LLP

Hearst
Tower, 47th Floor

214 North Tryon Street

Charlotte, North Carolina 28202

Attention: Stacy G. Ackermann

 

		(ii)	if
                                         to the Primary Servicer:

 

KeyBank
National Association

11501
Outlook Street, Suite 300

Overland
Park, Kansas 66211

Attention:
Michael A. Tilden

Fax
No. 877-379-1625

 

with
a copy to:

 

Polsinelli
PC

900
West 48th Place, Suite 900

Kansas
City, Missouri 64112

Attention: Kraig Kohring

Fax
No. 816-753-1536

 

or
such other address as may hereafter be furnished to the other party by like notice.

 

Section
6.06     Severability Clause.

 

Any
part, provision, representation or warranty of this Agreement which is prohibited or which is held to be void or unenforceable
shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof,
and any such prohibition or unenforceability in any jurisdiction as to any Mortgage Loan or Serviced Companion Loan shall not
invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by applicable law, the parties
hereto waive any provision of law which prohibits

 

     31

    

    

 

or
renders void or unenforceable any provision hereof. If the invalidity of any part, provision, representation or warranty of this
Agreement shall deprive any party of the economic benefit intended to be conferred by this Agreement, the parties shall negotiate,
in good faith, to develop a structure the economic effect of which is nearly as possible the same as the economic effect of this
Agreement without regard to such invalidity.

 

Section
6.07     Counterparts.

 

This
Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and
all such counterparts shall constitute one and the same instrument.

 

Section
6.08     Governing Law.

 

This
Agreement and any claim, controversy or dispute arising under or related to or in connection with this Agreement, the relationship
of the parties, and/or the interpretation and enforcement of the rights and duties of the parties shall be governed by the laws
of the State of New York without regard to any conflicts of law principles other than Section 5-1401 of the New York General Obligations
Law.

 

Section
6.09     Protection of Privileged Information.

 

If
the Primary Servicer receives Privileged Information from the Master Servicer with a notice stating that such information is Privileged
Information, the Primary Servicer shall not disclose such Privileged Information to any Person without the prior written consent
of the Master Servicer.

 

Section
6.10    Intention of the Parties.

 

It
is the intention of the parties that the Master Servicer is conveying, and the Primary Servicer is receiving, only a contract
for servicing the Mortgage Loans and the Serviced Companion Loans. Accordingly, the parties hereby acknowledge that the Trustee
remains the sole and absolute beneficial owner of the Mortgage Loans and all rights related thereto and that the Companion Noteholders
remain the sole and beneficial owners of the Serviced Companion Loans and all rights related thereto.

 

Section
6.11    Third Party Beneficiary.

 

The
Trustee, for the benefit of the Certificateholders, and the Trustee, as holder of the Lower-Tier Regular Interests, shall be a
third party beneficiary under this Agreement, provided that, except to the extent the Trustee or its designee assumes the obligations
of the Master Servicer hereunder as contemplated by Section 6.12 of this Agreement, none of the Depositor, the Certificate
Administrator, the Trustee, the Operating Advisor, the Asset Representations Reviewer, the Trust, the Special Servicer, or any
Certificateholder shall have any duties, liabilities or obligations under this Agreement.

 

     32

    

    

 

Section
6.12    Successors and Assigns; Assignment of Agreement.

 

This
Agreement shall bind and inure to the benefit of and be enforceable by the Primary Servicer and the Master Servicer and the respective
successors and assigns of the Primary Servicer and the Master Servicer. This Agreement shall not be assigned, pledged or hypothecated
by the Primary Servicer to a third party except as otherwise specifically provided for herein. This Agreement may be assumed by
the Trustee if the Trustee has assumed the duties of the Master Servicer or any successor Master Servicer, without cost or obligation
to the assuming party or the Trust Fund, upon the assumption by such party of the obligations, except to the extent they arose
prior to the date of assumption, of the Master Servicer pursuant to Section 7.02 of the Pooling and Servicing Agreement
(it being understood that any such obligations shall be the obligations of the terminated Master Servicer only).

 

Section
6.13    Waivers.

 

No
term or provision of this Agreement may be waived or modified unless such waiver or modification is in writing and signed by the
party against whom such waiver or modification is sought to be enforced.

 

Section
6.14    Exhibits.

 

The
exhibits to this Agreement are hereby incorporated and made a part hereof and are an integral part of this Agreement.

 

Section
6.15    General Interpretive Principles.

 

The
article and section headings are for convenience of a reference only, and shall not limit or otherwise affect the meaning hereof.

 

Section
6.16    Complete Agreement.

 

This
Agreement embodies the complete agreement between the parties regarding the subject matter hereof and may not be varied or terminated
except by a written agreement conforming to the provisions of Section 6.18 of this Agreement. All prior negotiations or
representations of the parties are merged into this Agreement and shall have no force or effect unless expressly stated herein.

 

Section
6.17    Further Agreement.

 

The
Primary Servicer and the Master Servicer each agree to execute and deliver to the other such reasonable and appropriate additional
documents, instruments or agreements as may be necessary or appropriate to effectuate the purposes of this Agreement.

 

Section
6.18    Amendments.

 

This
Agreement may only be amended with the consent of the Primary Servicer and the

 

     33

    

    

 

Master
Servicer. No amendment to the Pooling and Servicing Agreement that purports to change the rights or obligations of the Primary
Servicer hereunder or under the Pooling and Servicing Agreement shall be effective against the Primary Servicer without the express
written consent of the Primary Servicer.

 

[Remainder
of Page Intentionally Left Blank]

 

     34

    

    

 

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

	 	 	 
	 	WELLS
    FARGO BANK, NATIONAL ASSOCIATION
	 	 	 
	 	By:	/s/
    MaryKate Walker
	 	 	Name:  MaryKate
    Walker
	 	 	Title:    Vice
    President

 

MSC
2018-H3

KeyBank Primary Servicing Agreement 

 

     

    

    

 

	 	KEYBANK
    NATIONAL ASSOCIATION
	 	 	 
	 	By:	/s/
    Michael A. Tilden
	 	 	Name:  Michael
    A. Tilden
	 	 	Title:    Vice
    President

 

MSC
                                         2018-H3

KeyBank Primary Servicing Agreement

 

     

    

    

 

EXHIBIT
A

 

MORTGAGE
LOAN SCHEDULE

 

	Loan
    No. / 

    Property No.	 	Property
    Name	 	Cut-off
    Date Balance		Primary
    Servicing Fee
	2	 	6330
    West Loop South	 	$51,280,000	 	0.01000%
	4	 	HTI
    Medical Office Portfolio	 	$45,000,000	 	0.01000%1
	13	 	Enos
    Ranch Retail Center	 	$26,806,462	 	0.01000%
	17	 	Barrington
    & Copperstone	 	$18,430,257	 	0.01000%
	27	 	Fresenius
    Portfolio	 	$12,450,000	 	0.01000%
	44	 	Monaco
    Self Storage	 	$7,450,000	 	0.01000%

 

 

1
The Sub-Servicing Fee Rate for the Serviced Companion Loans is also 0.0100%

 

    A-1

    

    

 

EXHIBIT
B

 

PRIMARY
SERVICER’S OFFICER’S CERTIFICATE

 

I,
___________________ , hereby certify that I am the duly elected of [Primary Servicer], a corporation organized under the
laws of the State of (the “Primary Servicer”) and further as follows:

 

(i)          Attached
hereto as Exhibit 1 is a true, correct and complete copy of the articles of incorporation of the Primary
Servicer which are in full force and effect on the date hereof and which have been in effect without amendment, waiver,
rescission or modification since

 

(ii)         Attached
hereto as Exhibit 2 is a true, correct and complete copy of the by-laws of the Primary Servicer which are in
effect on the date hereof and which have been in effect without amendment, waiver, rescission or modification
since

 

(iii)        Attached
hereto as Exhibit 3 is an original certificate of good standing of the Primary Servicer, issued within ten days
of the date hereof, and no event has occurred since the date thereof which would impair such standing.

 

(iv)        Either
(i) no consent, approval, authorization or order of any court or governmental agency or body is required for the execution,
delivery and performance by the Primary Servicer of or compliance by the Primary Servicer with the Primary Servicing
Agreement or the consummation of the transactions contemplated by the Primary Servicing Agreement; or (ii) any required
consent, approval, authorization or order has been obtained by the Primary Servicer.

 

(v)         Neither
the consummation of the transactions contemplated by, nor the fulfillment of the terms of the Primary Servicing Agreement, conflicts
or will conflict with or results or will result in a breach of or constitutes or will constitute a default under the charter or
by-laws of the Primary Servicer, the terms of any indenture or other agreement or instrument to which the Primary Servicer is
a party or by which it is bound or to which it is subject, or any statute or order, rule, regulation, writ, injunction or decree
of any court, governmental authority or regulatory body to which the Primary Servicer is subject or by which it is bound.

 

(vi)        There
is no action, suit, proceeding or investigation pending or to the best of my knowledge threatened against the Primary Servicer
which, in our judgment, either in any one instance or in the aggregate, may result in any material adverse change in the business,
operations, financial conditions, properties or assets of the Primary Servicer or in any material impairment of the right or ability
of the Primary Servicer to carry on its business substantially as now conducted or in any material liability on the part of the
Primary Servicer or which would draw into question the validity of the Primary Servicing Agreement or of any action taken or to
be taken in connection with the transactions contemplated hereby, or which would be likely to impair materially the ability of
the Primary Servicer to perform under the terms of the Primary Servicing Agreement.

 

    B-1

    

    

 

(viii)      Each
person listed on Exhibit 5 attached hereto who, as an officer or representative of the Primary Servicer, signed
the Primary Servicing Agreement and any other document delivered prior hereto or on the date hereof in connection with the Primary
Servicing Agreement, was, at the respective times of such signing and delivery, and is now, a duly elected or appointed, qualified
and acting officer or representative of the Primary Servicer, who holds the office set forth opposite his or her name on Exhibit
5, and the signatures of such persons appearing on such documents are their genuine signatures.

 

(ix)        The
Primary Servicer is duly authorized to engage in the transactions described and contemplated in the Primary Servicing Agreement.

 

    B-2

    

    

 

IN
WITNESS WHEREOF, I have hereunto signed my name and affixed the seal of the Primary Servicer. 

	 	 	 	 	 	 	 
	Dated:	 	 	By	 	 
	 	 	 	Name:	 	 
	 	[Seal]	 	Title: [Vice] President

  

I,
____________________ , an [Assistant] Secretary of [Primary Servicer], hereby certify that ___________________________ is
the duly elected, qualified and acting [Vice] President of the Primary Servicer and that the signature appearing above is [her]
[his] genuine signature.

 

IN
WITNESS WHEREOF, I have hereunto signed my name.

	 	 	 	 	 	 	 
	Dated:	 	 	By	 	 
	 	 	 	Name:	 	 
	 	[Seal]	 	Title: [Vice] President

 

    B-3

    

    

 

EXHIBIT
5

 

To

 

Primary
Servicer’s Officer’s Certificate

 

	Name	Title	Signature
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    B-4

    

    

 

EXHIBIT
C

 

POOLING
AND SERVICING AGREEMENT

 

Previously
delivered.

 

    C-1

    

    

 

EXHIBIT
D

 

RESERVED

 

    D-1

    

    

 

EXHIBIT
E

 

QUARTERLY
SERVICING CERTIFICATION

 

Primary
Servicer:

 

RE:
MSC 2018-H3

 

Pursuant
to the Servicing Agreement(s) between Wells Fargo Bank, National Association and [Primary Servicer], we certify with respect to
each mortgage loan and companion loan serviced by us for Wells Fargo Bank, National Association that, as of the quarter ending,
except as otherwise noted below:

 

All
taxes, assessments and other governmental charges levied against the mortgaged premises, ground rents payable with respect to
the mortgaged premises, if any, which would be delinquent if not paid, have been paid.

 

Based
on [Primary Servicer’s] monitoring of the insurance in accordance with the Servicing Standard, all required insurance policies
are in full force and effect on the mortgaged premises in the form and amount and with the coverage required by the Servicing
Agreement(s).

 

All
necessary action has been taken to continue all UCC Financing Statements in favor of the originator of each mortgage loan and
companion loan or in favor of any assignee prior to the expiration of such UCC Financing Statements.

 

All
reserves are maintained and disbursed in accordance with the loan documents and no obligation for which a reserve is held has
not been completed within the time required by the applicable document.

 

	EXCEPTIONS: 	 

	 	 	 
	Servicing Officer	 	Date

 

    E-1

    

    

 

EXHIBIT
F

 

FORM
OF ACCOUNT CERTIFICATION

Securitization:
___________________________________________________________________________________________________________________

 

Primary Servicer:
___________________________________________________________________________________________________________________

 

	 	________	New Account	________	Change of Account
    Information
	 	 	 
	Indicate purpose of account
    (check all that apply):	 	 
	 	 	 
	 	________	Principal & Interest	________	Deposit Clearing
	 	________	Taxes & Insurance	________	Disbursement Clearing
	 	________	Reserves (non-interest bearing)	________	Suspense
	 	________	Reserves (interest bearing)		 

 

Account
Number: _______________________________________________________________________________________________________________

 

Account
Name: _________________________________________________________________________________________________________________

 

Depository
Institution (and Branch):

	 	 	 
	   	Name:	___________________________________________________________________________________________________________________
	 	 	 
	 	Street:	___________________________________________________________________________________________________________________

 

	 	 City, State, Zip:____________________________________________________________________________________________________________

 

	   	Rating Agency: _____________________________________________	Rating:	_______________________________________________________

 

Please
note that the name of the account must follow the guideline specifications detailed in the applicable agreement.

 

Prepared
by: ____________________________________________________________________________________________________________________

 

Signature:
______________________________________________________________________________________________________________________

 

Title:
__________________________________________________________________________________________________________________________

 

Date:
__________________________________________________________________________________________________________________________

	 	 	 
	Telephone: _________________________________________________________	Fax: ______________________________________________________________

 

    F-1

    

    

 

EXHIBIT
G

 

FORM
OF

COLLECTION REPORT

 

Series
_____

 

Month
of __________________

 

	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25	26	27	28	29	30	31	32	33	34	35	36	37	38	39
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Sched

    Addl

    Sub-Sub

    Fee	 

    Neg Am/

    Deferred Int

    Amount	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sub

    Serv

    ID	Master

    Servicer

    Loan#	Sub-

    Servicer

    Loan#	 

    Prosp

    ID	Sched

    Due

    Date	Begin

    Balance

    Prior to Pmt	Ending

    Balance

    After Pmt	Paid

    Thru

    Date	Current

    Note

    Rate	Sub-

    Servicer

    Fee Rate	Sched

    Prin

    Pmt	Sched

    Int

    Pmt	Sched

    P&I

    Amount	Sched

    Sub-Serv

    Fee	Unsched

    Principal

    Rec’d	Other

    Principal

    Adjust	Other

    Interest

    Adjust	Liq/

    Prepmt

    Date	Prepmt

    Penalty / YM

    Rec’d	Prepmt

    Int

    Exc/Short	Liq/

    Prepmt

    Code	T&I

    Advances

    O/S	Pmt

    Eff Date

    Recd	Actual

    Principal

    Rec’d	Actual
    (Gross)

    Interest

    Rec’d	Actual

    Sub-Servicer

    Fee Paid	Addl

    Sub-Sub

    Fee Paid	Actual
    (Net)

    Interest

    Rec’d	Late

    Charges

    Rec’d	Default

    Interest

    Rec’d	Assum

    Fees

    Rec’d	Addl

    Fees

    Rec’d	 

    Remittance

    Amount	Actual

    Loan

    Balance	Total

    Reserve

    Balance	Pmt

    Loan

    Status	 

     

    Comments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	0.00
    	0.00
    	0.00
    	0.00
    	0.00
    	0.00
    	0.00
    	0.00
    	0.00
    	 	0.00
    	0.00
    	 	0.00
    	 	0.00
    	0.00
    	0.00
    	 	 	0.00
    	0.00
    	0.00
    	0.00
    	0.00
    	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	NET
    REMIT TO MS	-     	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Loan
    Status	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	          A
    - payment not received but still in grace period

 

	 	B - late payment but less
    than 1 month delinquent	 	 
	 	O - Current	 	 
	 	1 - One month delinquent	 	 
	 	2 - Two months
    delinquent	 	 
	 	3 - Three months
    delinquent	 	 
	 	4 - Assumed Schedule
    Payment	 	 
	 	5 - Prepaid in
    Full	 	 
	 	6 - Specially Serviced	 	 
	 	Prepared By	7 - in foreclosure
	 	Approved By	9 - REO	 
	 	10 - DPO	 	 
	 	11 - Modification	 	 

 

    G-1

    

    

 

EXHIBIT
H

 

FORM
OF CERTIFICATE OF INSURANCE

 

	Primary
    Servicer:	 	 

 

Re:     MSC
2018-H3

 

Pursuant
to the Primary Servicing Agreement(s) between Wells Fargo Bank, National Association and [Primary Servicer], based on [Primary
Servicer’s] monitoring of the insurance in accordance with the Servicing Standard, we certify with respect to each Mortgage
Loan and Serviced Companion Loan serviced by us for Wells Fargo Bank, National Association that all required insurance policies
are in full force and effect on the mortgaged premises in the form and amount and with the coverage required by the Servicing
Agreement(s).

 

	Servicing
    Officer	 	Date

 

    H-1

    

    

 

EXHIBIT I

 

NEW
LEASE INFORMATION

	 	 	 	 	 	 
	Loan #	 	Property Type:	 	Tenant:	 

	 	 
	Property Name/Address:	 

	 	 	 	 	 	 
	Term (Years, Months):	 	Sq Ft Gross Rentable:	 	Net Rentable	 

	 	 	 	 
	Begin Lease Date:	 	 	Retail

	 	 	 	 
	End Lease Date:	 	 	Office

	 	 	 	 
	Occupancy Date (if diff):	 	 	Other

	 	 	 	 
	Minimum Rent 	 	 	(S/SF/YR)

	 	 	 	 	 	 
	 	 	(Mo/Yr)	Escalation:	CPI	Other
	Change to	on	 	 	 	 
	Change to	on	 	 	 	 
	Change to	on	 	 	 	 
	Change to	on	 	 	 	 

 

Percentage
Rent 

	 	 	 	 
	% Amount	For 	% Rent Due:	 
	 	For	 	Monthly
	 	Up to	 	Quarterly
	 	Up to	 	Annually

	 	 	 	 
	Breakpoint	            (S/Yr)  	Sales Report Due:	 
	 	 	 	 	 	 

	 	 	(Mo/Yr)	 
	Change to	  on	 	Monthly
	Change to	  on	 	Quarterly
	Change to	  on	 	Annually

 

Recoveries 

	 	 	 	 	 	 
	 	Taxes	 	Per	 

	 	 	 	 	 	 
	 	Insurance	 	Per	 

	 	 	 	 	 	 
	 	Cam	 	Per	 

	 	 	 	 	 	 
	 	HVAC	 	Per	 

	 	 	 	 	 	 
	 	Adver/Promo	 	 	Per	 

	 	 	 	 	 	 
	 		 	Per	 

	 	 	 	 	 	 
	 		 	Per	 

	 	 	 	 	 	 
	 	Management	 	Per	 

 

    I-1

    

    

 

 

Renewal
Options 

	 	 	 	 	 
	Term	 	 	SF	 

	 	 	 	 	 
	Minimum rent	 	 	Gross Rentable	 

	 	 	 	 	 
	% Rent	 	 	Net Rentable	 

 

Landlord
Costs

	 	 	 
	 	Alterations:	 

	 	 	 
	 	   Commissions: 	 

	 	 	 
	 	   Moving
    Allowances:	 

	 	 	 
	 	 Buyout Clauses:	 

	 	 	 
	 	Other:	 

	 	 
	Building Insurance Requirements
	 	Tenant
        maintains fire & ED on building(s); will need coverage to renew Does not furnish building coverage

General liability naming landlord mortgagee as additional insured; will need coverage for review

General liability without mentioning landlord’s mortgagee; do not need coverage

	 	 
	Waiver of Subrogation
	 	

N/A

Mutual;
will need endorsement

Landlord
only; will need endorsement

Tenant only; do not need endorsement

	 	 
	Comments:
	 	 
	Attachments:	 
	 	Original
        Lease

Original
Subordination Agreement

 

    I-2

    

    

 

EXHIBIT
J

 

MONTHLY
SERVICING ACCOUNTS CERTIFICATION

 

	Primary
    Servicer:	 	 

 

Re:     MSC
2018-H3

 

Pursuant
to the Servicing Agreement(s) between Wells Fargo Bank, National Association and the above named Servicer, I certify with respect
to each transaction serviced by us, as noted above, for Wells Fargo Bank, National Association that as of (Determination Date)
all collection accounts and servicing accounts have been properly reconciled and the reconciliations have been reviewed and approved
by Servicer’s management, except as otherwise noted below:

 

	EXCEPTIONS: 	 
	

                                                  
	 
	

                                                  
	 

 

 

	Servicing
    Officer	 	Date

 

    J-1Exhibit

Exhibit 10.24
ION GEOPHYSICAL CORPORATION 2018 STOCK APPRECIATION RIGHTS PLAN
SECTION 1

GENERAL PROVISIONS RELATING TO PLAN GOVERNANCE, COVERAGE AND BENEFITS

1.1.    Purpose. The purpose of the Plan is to foster and promote the long-term financial success of ION Geophysical Corporation (the “Company”) and its Subsidiaries and to increase stockholder value by: (i) encouraging the commitment of Directors and selected key Employees and Consultants, (ii) motivating superior performance of Directors and key Employees and Consultants by means of long-term performance related incentives, (iii) encouraging and providing Directors and selected key Employees and Consultants with a program that aligns their personal interests to those of the Company’s stockholders, (iv) attracting and retaining Directors and selected key Employees and Consultants by providing competitive incentive compensation opportunities, and (v) enabling Directors and selected key Employees and Consultants to share in the long-term growth and success of the Company.

The Plan provides for payment of incentive compensation in the form of stock appreciation rights. The Plan is not intended to be a plan that is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and, as such, the Plan will be interpreted, construed and administered consistent with its status as a plan that is not subject to ERISA.

The Plan is effective as of October 29, 2018 (the “Effective Date”). The Plan will commence on the Effective Date, and will remain in effect, subject to the right of the Board to amend or terminate the Plan at any time pursuant to Section 5.6. However, in no event may any Stock Appreciation Rights be granted under the Plan after ten (10) years from the Effective Date.

		
	1.2.
	Definitions.  The following terms shall have the meanings set forth below:

(a)    Authorized Officer. The Chairman of the Board, the CEO, the President, or any Executive Vice President or Senior Vice President or any other senior officer of the Company to whom any of them delegate the authority to execute any SAR Agreement for and on behalf of the Company. No officer or director shall be an Authorized Officer with respect to any SAR Agreement for himself.

		
	(b)
	Board.  The Board of Directors of the Company.

(c)    Cause. Except as otherwise provided by the Committee or as otherwise provided in a Grantee’s employment agreement, when used in connection with the termination of a Grantee’s Employment or service, shall mean the termination of the Grantee’s Employment or Grantee’s services as a Director or Consultant by the Company or any Subsidiary by reason of (i) the conviction of the Grantee by a court of competent jurisdiction of a crime involving moral turpitude or a felony; (ii) the proven commission by the Grantee of a material act of fraud upon the 

Company or any Subsidiary, or any customer or supplier thereof; (iii) the willful and proven misappropriation of any funds or property of the Company or any Subsidiary, or any customer or

supplier thereof; (iv) the willful, continued and unreasonable failure by the Grantee to perform the material duties assigned to him which is not cured to the reasonable satisfaction of the Company within thirty (30) days after written notice of such failure is provided to Grantee by the Board or by a designated officer of the Company or a Subsidiary; (v) the knowing engagement by the Grantee in any direct and material conflict of interest with the Company or any Subsidiary without compliance with the Company’s or Subsidiary’s conflict of interest policy, if any, then in effect; or (vi) the knowing engagement by the Grantee, without the written approval of the Board, in any material activity which competes with the business of the Company or any Subsidiary or which would result in a material injury to the business, reputation or goodwill of the Company or any Subsidiary; or (vii) the material breach by a Consultant of such Grantee’s contract with the Company.

		
	(d)
	CEO.  The Chief Executive Officer of the Company.

4.5.
		
	(e)
	 
Change in Control.  Any of the events described in and subject to Section

(f)    Code. The Internal Revenue Code of 1986, as amended, and the regulations and other authority promulgated thereunder by the appropriate governmental authority. References herein to any provision of the Code shall refer to any successor provision thereto.

(g)    Committee. A committee appointed by the Board to administer the Plan. The Committee may be the Compensation Committee of the Board, or any subcommittee of the Compensation Committee. The Board shall have the power to fill vacancies on the Committee arising by resignation, death, removal or otherwise. The Board, in its sole discretion, may bifurcate the powers and duties of the Committee among one or more separate committees, or retain all powers and duties of the Committee in a single Committee. The members of the Committee shall serve at the discretion of the Board.

(h)    Common Stock. The common stock of the Company, $.01 per value per share, and any class of common stock into which such common shares may hereafter be converted, reclassified, re-capitalized, or exchanged.

(i)    Company. ION Geophysical Corporation, a corporation organized under the laws of the State of Delaware, and any successor-in-interest thereto.

(j)    Consultant. An independent agent, consultant, attorney, an individual who has agreed to become an Employee within the next six months, or any other individual who is not a Director or employee of the Company (or any Parent or Subsidiary) and who, in the opinion of the Committee, is in a position to contribute to the growth or financial success of the Company (or any Parent or Subsidiary), (ii), is a natural person and (iii) provides bona fide services to the Company (or any Parent or Subsidiary), which services are not in connection with the offer or sale of securities in a capital raising transaction, and do not directly or indirectly promote or maintain a market for the Company’s securities.

		
	(k)
	Director.  Any individual who is a member of the Board.

(l)    Disability. As determined by the Committee in its discretion exercised in good faith, a physical or mental condition of the Employee that would entitle him to disability income payments under the Company’s long term disability insurance policy or plan for employees, as then effective, if any; or in the event that the Grantee is not covered, for whatever reason, under the Company’s long-term disability insurance policy or plan, “Disability” means a permanent and total disability as defined in Section 22(e)(3) of the Code. A determination of Disability may be made by a physician selected or approved by the Committee and, in this respect, the Grantee shall submit to any reasonable examination by such physician upon request.

(m)    Employee. Any employee of the Company (or any Parent or Subsidiary) within the meaning of Section 3401(c) of the Code who, in the opinion of the Committee, is in a position to contribute to the growth, development or financial success of the Company (or any Parent or Subsidiary), including, without limitation, officers who are members of the Board.

(n)    Employment. Employment by the Company (or any Parent or Subsidiary), or by any corporation issuing or assuming a Stock Appreciation Right in any transaction described in Section 424(a) of the Code, or by a parent corporation or a subsidiary corporation of such corporation issuing or assuming such SAR, as the parent-subsidiary relationship shall be determined at the time of the corporate action described in Section 424(a) of the Code. In this regard, neither the transfer of a Grantee from Employment by the Company to Employment by any Parent or Subsidiary, nor the transfer of a Grantee from Employment by any Parent or Subsidiary to Employment by the Company, shall be deemed to be a termination of Employment of the Grantee. Moreover, the Employment of a Grantee shall not be deemed to have been terminated because of an approved leave of absence from active Employment on account of temporary illness, authorized vacation or granted for reasons of professional advancement, education, health, government service or military leave, or during any period required to be treated as a leave of absence by virtue of any applicable statute, Company personnel policy or agreement. Whether an authorized leave of absence shall constitute termination of Employment hereunder shall be determined by the Committee in its discretion. Unless otherwise provided in the SAR Agreement, the term “Employment” for purposes of the Plan is also defined to include compensatory or advisory services performed by a Consultant for the Company (or any Parent or Subsidiary).

		
	(o)
	Exchange Act.  The Securities Exchange Act of 1934, as amended.

(p)    Fair Market Value. While the Company is a Publicly Held Corporation, the Fair Market Value of one share of Common Stock on the date in question is deemed to be the closing sales price on the immediately preceding business day of a share of Common Stock as reported on the New York Stock Exchange or other principal securities exchange on which Shares are then listed or admitted to trading, or as quoted on any national interdealer quotation system, if such shares are not so listed.

(q)    Grantee. Any Employee, Director or Consultant who is granted an SAR under the Plan.

(r)    Immediate Family. With respect to a Grantee, the Grantee’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, mother-in-law, father-

in-law,   son-in-law,   daughter-in-law,   brother-in-law,   or   sister-in-law,   including   adoptive relationships.

		
	(s)
	Non-Employee Director.  A Director who is not an Employee.

(t)    Non-Employee Director Award. A SAR granted to a Grantee who is a Non- Employee Director pursuant to such applicable terms, conditions, and limitations as the Board or Committee may establish in accordance with this Plan.

(u)    Parent. Any corporation (whether now or hereafter existing) that constitutes a “Parent” of the Company, as defined in Section 424(e) of the Code.

Plan.
 
(v)    Plan.  The ION Geophysical Corporation 2018 Stock Appreciation Rights

(w)Publicly Held Corporation. A corporation issuing any class of common equity securities required to be registered under Section 12 of the Exchange Act.

(x)Retirement. The voluntary termination of Employment from the Company or any Parent or Subsidiary constituting retirement for age on any date after the Employee attains the normal retirement age of 65 years, or such other age as may be designated by the Committee in the Employee’s SAR Agreement.

(y)SAR Agreement. The written agreement entered into between the Company and the Grantee setting forth the terms and conditions pursuant to which an SAR is granted under the Plan, as such agreement is further defined in Section 4.1(a).

		
	(z)
	Share. A share of Common Stock of the Company.

(aa)    Spread.  The difference between the exercise price per Share specified in any SAR grant and the Fair Market Value of a Share on the date of exercise of the SAR.

(bb)    Stock Appreciation Right or SAR.  An SAR described in Section 2.

(cc)    Subsidiary.   Any corporation (whether now or hereafter existing) which constitutes a “subsidiary” of the Company, as defined in Section 424(f) of the Code.

		
	1.3.
	Plan Administration

(a)    Authority of the Committee. Except as may be limited by law and subject to the provisions herein, the Committee shall have full power to (i) select Grantees who shall participate in the Plan; (ii) determine the sizes, duration and any other applicable terms and conditions of SAR awards and SAR Agreements; (iii) construe and interpret the Plan and any SAR Agreement or other agreement entered into under the Plan; and (iv) establish, amend, or waive rules for the Plan’s administration. Further, the Committee shall make all other determinations which may be necessary or advisable for the administration of the Plan.

(b)    Meetings. The Committee shall designate a chairman from among its members who shall preside at all of its meetings, and shall designate a secretary, without regard to whether that person is a member of the Committee, who shall keep the minutes of the proceedings and all records, documents, and data pertaining to its administration of the Plan. Meetings shall be held at such times and places as shall be determined by the Committee and the Committee may hold telephonic meetings.

(c)    Decisions Binding. All determinations and decisions made by the Committee shall be made in its discretion pursuant to the provisions of the Plan, and shall be final, conclusive and binding on all persons including the Company, Employees, Directors, Grantees, and their estates and beneficiaries. The Committee’s decisions and determinations with respect to any SARs need not be uniform and may be made selectively among SARs and Grantees, whether or not such SARs are similar or such Grantees are similarly situated.

(d)    Modification of Outstanding SARs. The Committee may, in its discretion, provide for the extension of the exercisability of an SAR, accelerate the vesting or exercisability of an SAR, eliminate or make less restrictive any restrictions contained in an SAR Agreement, waive any restriction or other provisions of an SAR, or otherwise amend or modify an SAR Agreement in any manner that is either (i) not adverse to the Grantee to whom such SAR was granted, or (ii) consented to by such Grantee; provided, however, that (x) no SAR issued under the Plan will be repriced, replaced or regranted through cancellation, or by lowering the exercise price of a previously granted SAR, (y) the period during which an SAR may be exercised shall not be extended later than the expiration of the term of such SAR as specified in the SAR Agreement, and (z) no such amendment or modification shall cause an SAR that is not subject to Section 409A of the Code to become subject to Section 409A of the Code.

(e)    Delegation of Authority. The Committee may delegate to designated officers or other employees of the Company any of its duties and authority under the Plan pursuant to such conditions or limitations as the Committee may establish from time to time.

(f)    Expenses of Committee. The Committee may employ legal counsel, including, without limitation, independent legal counsel and counsel regularly employed by the Company, and other agents, as the Committee may deem appropriate for the administration of the Plan. The Committee may rely upon any opinion or computation received from any such counsel or agent. All expenses incurred by the Committee in interpreting and administering the Plan, including, without limitation, meeting expenses and professional fees, shall be paid by the Company.

(g)    Indemnification. Each person who is or was a member of the Committee, or of the Board, shall be indemnified by the Company against and from any damage, loss, liability, cost and expense that may be imposed upon or reasonably incurred by him in connection with or resulting from any claim, action, suit, or proceeding to which he may be a party or in which he may be involved by reason of any action taken or failure to act under the Plan, except for any such act or omission constituting willful misconduct or gross negligence. Such person shall be indemnified by the Company for all amounts paid by him in settlement thereof, with the Company’s approval, or paid by him in satisfaction of any judgment in any such action, suit, or proceeding against him, provided he shall give the Company an opportunity, at its own expense,

to handle and defend the same before he undertakes to handle and defend it on his own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Articles or Certificate of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

(h)    Awards in Foreign Countries. The Board shall have the authority to adopt modifications, procedures, sub-plans, and other similar plan documents as may be necessary or desirable to comply with provisions of the laws of foreign countries in which the Company or its subsidiaries may operate to assure the viability of the benefits of SARs made to individuals employed or providing services in such countries and to meet the objectives of the Plan.

1.4.    Shares of Common Stock. The references to Shares of Common Stock in the Plan are intended to provide the basis for determining the size of an SAR award, and for measuring the spread upon an exercise of an SAR. However, in no event will any Shares of Common Stock be issued, transferred or otherwise distributed under the Plan.

1.5.    Eligibility. The Committee shall from time to time designate those key Employees, Directors or Consultants, if any, to be granted SARs under the Plan, the number of SARs granted, and any other terms or conditions relating to the SARs as it may deem appropriate to the extent consistent with the provisions of the Plan. A Grantee who has been granted SARs may, if otherwise eligible, be granted additional SARs at any time.

SECTION 2

STOCK APPRECIATION RIGHTS

		
	2.1.
	Stock Appreciation Rights.

(a)    General Provisions. The terms and conditions of each SAR shall be evidenced by an SAR Agreement. The SAR Agreement shall designate the vesting conditions applicable to the SARs subject to such agreement, which may include both time and performance measures as determined by the Committee in its sole discretion. The exercise price per SAR shall be not less than one hundred percent (100%) of the Fair Market Value of a Share of Common Stock on the date of grant of the SAR. The term of an SAR shall be determined by the Committee; provided, however that such term shall not exceed ten (10) years from the date of grant.

(b)    Exercise. SARs shall be exercisable at such time and subject to such terms and conditions as the Committee shall specify in the SAR Agreement for the SAR grant.

(c)    Settlement. Upon exercise of an SAR, the holder shall receive a cash payment in an amount equal to the Spread for each Share specified in the SAR Agreement for which the SAR is being exercised. The Spread shall be paid promptly after the exercise of the SAR.

SECTION 3

ADDITIONAL PROVISIONS RELATING TO NON-EMPLOYEE DIRECTOR AWARDS

3.1.    Generally. All SAR awards to Non-Employee Directors shall be determined by the Board or Committee.

3.2.    Vesting Period.  The Committee shall prescribe the vesting period for each SAR granted to a Non-Employee Director.

SECTION 4

PROVISIONS RELATING TO PLAN PARTICIPATION

4.1.    Plan Conditions.

(a)    SAR Agreement. Each Grantee to whom an SAR is granted shall be required to enter into an SAR Agreement with the Company, in such a form as is provided by the Committee. The SAR Agreement shall contain specific terms as determined by the Committee, in its discretion, with respect to the Grantee’s particular SARs. Such terms need not be uniform among all Grantees or any similarly-situated Grantees. The SAR Agreement may include, without limitation, vesting, forfeiture and other provisions particular to the particular Grantee’s SARs, as well as, for example, provisions to the effect that the Grantee (i) shall not disclose any confidential information acquired during Employment with the Company, (ii) shall abide by all the terms and conditions of the Plan and such other terms and conditions as may be imposed by the Committee,
(iii) shall not interfere with the employment or other service of any employee, (iv) shall not compete with the Company or become involved in a conflict of interest with the interests of the Company, and (v) shall forfeit the Grantee’s SARs as determined by the Committee (including if terminated for Cause). An SAR Agreement shall include such terms and conditions as are determined by the Committee, in its discretion, to be appropriate with respect to any individual Grantee. The SAR Agreement shall be signed by the Grantee to whom the SAR award is made and by an Authorized Officer.

(b)    No Right to Employment or Continued Service. Nothing in the Plan or any instrument executed pursuant to the Plan shall create any employment rights or right to serve on the Board (including without limitation, rights to continued Employment or to continue to provide services as a Director or Consultant) by any Grantee or affect the right of the Company to terminate the Employment or services of any Grantee at any time without regard to the existence of the Plan.

4.2.    Transferability. SARs granted under the Plan shall not be transferable or assignable, pledged, or otherwise encumbered other than by will or the laws of descent and distribution. However, the Committee may, in its discretion, authorize all or a portion of the SARs to be granted on terms which permit transfer by the Grantee to (i) the members of the Grantee’s Immediate Family, (ii) a trust or trusts for the exclusive benefit of Immediate Family members, (iii) a partnership in which Immediate Family members are the only partners, (iv) any other entity owned solely by Immediate Family members, or (v) pursuant to a domestic relations order that would qualify under Section 414(p) of the Code; provided that (A) the SAR Agreement pursuant to which

such SARs are granted must expressly provide for transferability in a manner consistent with this Section 4.2, (B) the actual transfer must be approved in advance by the Committee, and (C) subsequent transfers of transferred SARs shall be prohibited except in accordance with the first sentence of this section. Following any permitted transfer, the SAR shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, provided that the term “Grantee” (subject to the immediately succeeding paragraph) shall be deemed to refer to the transferee. The events of termination of employment, as set out in Section 4.4 and in the SAR Agreement, shall continue to be applied with respect to the original Grantee, and the SAR shall be exercisable by the transferee only to the extent, and for the periods, specified in the SAR Agreement.

In addition, the Company and the Committee shall have no obligation to provide any notices to any Grantee or transferee thereof, including, for example, notice of the expiration of an SAR following the original Grantee’s termination of employment.

The designation by a Grantee of a beneficiary of an SAR shall not constitute a transfer of the SAR. No transfer by will or by the laws of descent and distribution shall be effective to bind the Company unless the Committee has been furnished with a copy of the deceased Grantee’s enforceable will or such other evidence as the Committee deems necessary to establish the validity of the transfer. Any attempted transfer in violation of this Section 4.2 shall be void and ineffective. The Committee in its discretion shall make all determinations under this Section 4.2.

		
	4.3.
	Change in Stock and Adjustments.

(a)    Changes in Law. Subject to Section 4.5 (which only applies in the event of a Change of Control), in the event of any change in applicable law which warrants equitable adjustment because it interferes with the intended operation of the Plan, then, if the Committee should determine, in its absolute discretion, that such change equitably requires an adjustment in the number or kind of shares of stock or other securities or property to which the SARs relate or in the terms and conditions of outstanding SARs, such adjustment shall be made in accordance with such determination. Such adjustments may include changes with respect to (i) the exercise price per SAR for outstanding SARs, or (ii) the number of Shares to which a specific SAR award is deemed to relate. Any adjustment under this paragraph of an outstanding SAR shall be made only to the extent that such modification would not result in the assessment of taxation of such SARs under Section 409A of the Code unless otherwise agreed to by the Grantee in writing. The Committee shall give notice to each applicable Grantee of such adjustment, which shall be effective and binding.

(b)    Exercise of Corporate Powers. The existence of the Plan or outstanding SARs hereunder shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, re-capitalizations, reorganizations or other changes in the Company’s capital structure or its business or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or prior preference stocks ahead of or affecting the Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding whether of a similar character or otherwise.

(c)    Recapitalization of the Company. Subject to Section 4.5 (which only applies in the event of a Change in Control), in the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), re-capitalization, stock split, reverse stock split, rights offering, reorganization, merger, consolidation, split-up, spin-off, split-off, combination, subdivision, repurchase, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other similar corporate transaction or event affects the Common Stock such that an adjustment is determined by the Committee to be appropriate to prevent the dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it deems equitable, adjust any or all of (i) the exercise price per SAR for outstanding SARs, or
(ii) the number of Shares to which a specific SAR award is deemed to relate. Any adjustment under this paragraph of an outstanding SAR shall be made only to the extent that such modification would not result in the assessment of taxation of such SARs under Section 409A of the Code unless otherwise agreed to by the Grantee in writing. The Committee shall give notice to each applicable Grantee of such adjustment, which shall be effective and binding.

Upon the occurrence of any such adjustment, the Company shall provide notice to each affected Grantee of its computation of such adjustment, which shall be conclusive and shall be binding upon each such Grantee.

(d)    Assumption of SARs by a Successor. Subject to the accelerated vesting and other provisions of Section 4.5 that apply in the event of a Change in Control, in the event of a Corporate Event, the Committee in its discretion shall have the right and power to:

(i)    cancel, effective immediately prior to the occurrence of the Corporate Event, each outstanding SAR (whether or not then exercisable) and, in full consideration of such cancellation, pay to the Grantee an amount in cash equal to the excess of (A) the value, as determined by the Committee, of the property (including cash) received by the holders of Common Stock as a result of such Corporate Event, over (B) the exercise price of such SAR, if any; or

(ii)    make an equitable adjustment as determined by the Committee, in its discretion, in accordance with Section 4.3(i) above; or

(iii)    provide for the assumption of the Plan and such outstanding SARs or for substitute awards by the surviving entity or its parent.

The Committee, in its discretion, shall have the authority to take whatever action it deems to be necessary or appropriate to effectuate the provisions of this Subsection (d).

A “Corporate Event” means any of the following: (i) a dissolution or liquidation of the Company, (ii) a sale of all or substantially all of the Company’s assets, or (iii) a merger, consolidation or combination involving the Company (other than a merger, consolidation or combination (A) in which the Company is the continuing or surviving corporation, and (B) which does not result in the outstanding Shares being converted into or exchanged for different securities, cash or other property, or any combination thereof). The Committee shall take whatever other action it deems appropriate to preserve the rights of Grantees holding outstanding SARs.

		
	4.4.
	Termination of Employment, Death, Disability and Retirement.

(a)    Termination of Relationship. Unless otherwise expressly provided in the Grantee’s SAR Agreement, if the Grantee’s Employment or services as a Director or Consultant is terminated for any reason other than due to his death, Disability, Retirement, or for Cause, any non-vested portion of any SARs at the time of such termination shall automatically expire and terminate and no further vesting shall occur after the termination date. In such event, except as otherwise expressly provided in his SAR Agreement, the Grantee shall be entitled to exercise his rights only with respect to the portion of the SARs that were vested as of his termination of Employment or service date. In such event, except as otherwise expressly provided in his SAR Agreement, the Grantee shall be entitled to exercise his vested SARs for a period that shall end on the earlier of (i) the expiration date set forth in the SAR Agreement, or (ii) one hundred eighty
(180) days after the date of his termination.

(b)    Termination for Cause. Unless otherwise expressly provided in the Grantee’s SAR Agreement, in the event of the termination of a Grantee’s Employment, or service as a Consultant or Director, for Cause, all vested and non-vested SARs granted to such Grantee shall immediately expire, and shall not be exercisable to any extent, as of 12:01 a.m., Houston, Texas time, on the date of such termination of Employment or service for cause.

(c)    Retirement. Unless otherwise expressly provided in the Grantee’s SAR Agreement, upon the termination of Employment due to the Retirement of any Employee who is a Grantee, all of his SARs then outstanding shall become 100% vested and immediately and fully exercisable until the earlier of (i) the expiration date set forth in the SAR Agreement for such SARs; or (ii) the expiration of twelve months after the date of his termination of Employment due to his Retirement.

(d)    Disability or Death. Unless otherwise expressly provided in the Grantee’s SAR Agreement, upon the termination of Employment or service as a Director due to the Disability or death of any Employee or Non-Employee Director who is a Grantee, all of his SARs then outstanding shall become 100% vested and immediately and fully exercisable until the earlier of
(i) the expiration date set forth in the SAR Agreement for such SARs; or (ii) the expiration of twelve months after the date of his termination of Employment due to his Disability or death.

(e)    Continuation. Subject to the conditions and limitations of the Plan and applicable law and regulation in the event that a Grantee ceases to be an Employee or Consultant, as applicable, for whatever reason, the Committee and Grantee may mutually agree with respect to any outstanding SARs then held by the Grantee (i) for an acceleration of or other adjustment in any vesting schedule applicable to the SARs, (ii) for a continuation of the exercise period following termination for a longer period than is otherwise provided under such SARs, or (iii) to any other change in the terms and conditions of the SARs. In the event of any such change to an outstanding SARs, a written amendment to the Grantee’s SAR Agreement shall be required.

		
	4.5.
	Change in Control.

(a)    Vesting; Amendment.   In the event of a Change in Control (as defined below),  all  SARS  then  outstanding  shall  become  100%  vested  and  immediately  and  fully

exercisable as of the day immediately preceding the Change in Control date unless expressly provided otherwise in the Grantee’s SAR Agreement. Notwithstanding any other provision of this Plan, unless otherwise expressly provided in the Grantee’s SAR Agreement, the provisions of this Section 4.5 may not be terminated, amended, or modified to adversely affect any SAR theretofore granted under the Plan without the prior written consent of the Grantee with respect to his outstanding SARs.

(b)    Definition.   For all purposes of this Plan, a “Change in Control” of the Company means the occurrence of any one or more of the following events:

(i)    The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a “Person”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of forty percent (40%) or more of either (A) the then-outstanding Shares of Common Stock of the Company (the “Outstanding Company Stock”), or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that the following acquisitions shall not constitute a Change in Control: (x) any acquisition directly from the Company or any Subsidiary,
(y) any acquisition by the Company or any Subsidiary or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, or (z) any acquisition by any corporation pursuant to a reorganization, merger, consolidation or similar business combination involving the Company (a “Merger”), if, following such Merger, the conditions described in clauses (A) and (B) of Section 4.5(b)(iii) (below) are satisfied;

(ii)    Individuals who, as of the Effective Date, constitute the Board of Directors of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (i.e., a solicitation by any person or group of persons for the purpose of opposing a solicitation of proxies or consents by the Board with respect to the election or removal of Directors at any annual or special meeting of stockholders) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

(iii)    Approval by the stockholders of the Company of a Merger, unless immediately following such Merger, (A) substantially all of the holders of the Outstanding Company Voting Securities immediately prior to such Merger beneficially own, directly or indirectly, more than 50% of the common stock of the corporation resulting from such Merger (or its parent corporation) in substantially the same proportions as their ownership of Outstanding Company Voting Securities immediately prior to such Merger, and (B) at least a majority of the members of the board of directors of the corporation resulting from such Merger (or its parent corporation) were members of the Incumbent Board at the time of the execution of the initial agreement providing for such Merger; or

of the Company.
		
	(iv)
	 
The sale or other disposition of all or substantially all of the assets

SECTION 5

GENERAL

5.1.    Grant Period. No SAR shall be granted under the Plan after ten (10) years from the Effective Date. Unless sooner terminated by action of the Board, this Plan will terminate at 5:00
p.m. Houston, Texas time, on October 29, 2028. SARs under this Plan may not be granted after that date, but any SAR duly granted before that date will continue to be effective in accordance with its terms and conditions.

5.2.    Funding and Liability of Company. No provision of the Plan shall require the Company, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made, or otherwise to segregate any assets. In addition, the Company shall not be required to maintain separate bank accounts, books, records or other evidence of the existence of a segregated or separately maintained or administered fund for purposes of the Plan. Although bookkeeping accounts may be established with respect to Grantees who are entitled to cash, any such accounts shall be used merely as a bookkeeping convenience. The Company shall not be required to segregate any assets for any purposes of this Plan. The Plan shall not be construed as providing for such segregation, nor shall the Company, the Board or the Committee be deemed to be a trustee of any cash. Any liability or obligation of the Company to any Grantee with respect to an SAR shall be based solely upon any contractual obligations that may be created by this Plan and any SAR Agreement, and no such liability or obligation of the Company shall be deemed to be secured by any pledge or other encumbrance on any property of the Company. Neither the Company, the Board nor the Committee shall be required to give any security or bond for the performance of any obligation that may be created by the Plan.

5.3.    Withholding Taxes. The Company shall have the power and the right to deduct or withhold from any payment made pursuant to this Plan an amount sufficient to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of the Plan or SAR award hereunder.

5.4.    No Guarantee of Tax Consequences. Neither the Company nor the Committee makes any commitment or guarantee that any federal, state or local tax treatment will apply or be available to any person participating or eligible to participate hereunder.

5.5.    Designation of Beneficiary by Grantee. Each Grantee may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under the Plan is to be paid in case of his death before he receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Grantee, shall be in a form prescribed by the Committee, and will be effective only when filed by the Grantee in writing with the Committee during the Grantee’s lifetime. In the absence of any such designation, benefits remaining unpaid at the Grantee’s death shall be paid to the Grantee’s estate.

5.6.    Amendment and Termination. The Board shall have the power and authority to terminate or amend the Plan at any time. No termination, amendment, or modification of the Plan shall adversely affect in any material way any outstanding SAR previously granted to a Grantee under the Plan, without the written consent of such Grantee or other designated holder of such SAR.

5.7.    Successors to Company. All obligations of the Company under the Plan with respect to SARs granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

		
	5.8.
	Miscellaneous Provisions.

(a)    No Employee, Director or Consultant, or other person shall have any claim or right to be granted an SAR under the Plan. Neither the Plan, nor any action taken hereunder, shall be construed as giving any Employee, Director or Consultant, any right to be retained in the Employment or other service of the Company or any Parent or Subsidiary.

(b)    By accepting any SAR, each Grantee and each person claiming by or through him shall be deemed to have indicated his acceptance of the Plan.

5.9.    Severability. In the event that any provision of this Plan shall be held illegal, invalid or unenforceable for any reason, such provision shall be fully severable, but shall not affect the remaining provisions of the Plan, and the Plan shall be construed and enforced as if the illegal, invalid, or unenforceable provision was not included herein.

5.10.    Gender, Tense and Headings. Whenever the context so requires, words of the masculine gender used herein shall include the feminine and neuter, and words used in the singular shall include the plural. Section headings as used herein are inserted solely for convenience and reference and constitute no part of the interpretation or construction of the Plan.

5.11.    Governing Law. The Plan shall be interpreted, construed and constructed in accordance with the laws of the State of Texas without regard to its conflicts of law provisions, except as may be superseded by applicable laws of the United States or applicable provisions of the Delaware General Corporation Law.

5.12.    Deferred Compensation. This Plan and any SAR Agreement issued under the Plan are intended to be exempt from Section 409A of the Code and shall be administered in a manner that is intended to meet the requirements of such exemption and shall be construed and interpreted in accordance with such intent. To the extent that an SAR or payment, or the settlement thereof, is subject to Section 409A of the Code because such SAR is not exempt from Section 409A, except as the Board otherwise determines in writing, the SAR shall be granted, paid, settled or deferred in a manner that will meet the requirements of Section 409A of the Code, including regulations or other guidance issued with respect thereto, such that the grant, payment or settlement shall not be subject to the excise tax applicable under Section 409A of the Code. Any provision of this Plan or any SAR Agreement that would cause an SAR or the payment or settlement thereof to fail to satisfy Section 409A of the Code shall be amended (in a manner that as closely as practicable achieves the original intent of this Plan or the SAR Agreement, as applicable) to comply with Section 409A

of the Code on a timely basis, which may be made on a retroactive basis, in accordance with regulations and other guidance issued under Section 409A of the Code. In the event the Plan allows for a deferral of compensation, the Plan is intended to qualify for certain exemptions under Title I of ERISA provided for plans that are unfunded and maintained primarily for the purpose of providing deferred compensation for a select group of management or highly-compensated employees.

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