Document:

Exhibit 4.14

 

Execution
Version

 

PRIMARY SERVICING AGREEMENT

 

UBS Commercial Mortgage Trust 2018-C8,

 

Commercial Mortgage Pass-Through Certificates

 

Series 2018-C8

 

Dated as of February 1, 2018

 

By and Between

 

MIDLAND LOAN SERVICES, A DIVISION OF PNC
BANK, NATIONAL ASSOCIATION,

 

Master Servicer

 

and

 

BERKELEY POINT CAPITAL LLC

 

Primary Servicer

 

     

     

    

 

 

	 	TABLE
    OF CONTENTS	 
	 	 	 
	 	ARTICLE
    I.	 
	 	 	 
	DEFINITIONS	 	1
	 	 	 
	Section 1.01.	Defined Terms	1
	 	ARTICLE
    II.	 
	 	 	 
	RETENTION
    AND AUTHORITY OF PRIMARY SERVICER	3
	 	 
	Section 2.01.	Servicing Standard;
    Commencement of Servicing Responsibilities	3
	 	 	 
	Section 2.02.	Sub-Subservicing	3
	 	 	 
	Section 2.03.	Authority of Primary
    Servicer	4
	 	 	 
	 	ARTICLE
    III.	 
	 	 	 
	SERVICES
    TO BE PERFORMED	5
	 	 
	Section 3.01.	Services as Primary
    Servicer	5
	 	 	 
	Section 3.02.	Portfolio Manager	9
	 	 	 
	Section 3.03.	Maintenance of Errors
    and Omissions and Fidelity Coverage	9
	 	 	 
	Section 3.04.	Delivery and Possession
    of Servicing Files	10
	 	 	 
	Section 3.05.	Annual Compliance
    Statements	10
	 	 	 
	Section 3.06.	Annual Reports on
    Assessment of Compliance with the Servicing Criteria	11
	 	 	 
	Section 3.07.	Annual Independent
    Public Accountants’ Attestation Report	11
	 	 	 
	Section 3.08.	Sarbanes-Oxley Certification	12
	 	 	 
	Section 3.09.	Delivery of Mortgage
    Loan Purchase Agreement	13
	 	 	 
	 	ARTICLE
    IV.	 
	 	 	 
	PRESERVATION
    OF THE REMICS	13
	 	 	 
	 	ARTICLE
    V.	 
	 	 	 
	PRIMARY
    SERVICER’S COMPENSATION AND EXPENSES	13
	 	 	 
	Section 5.01.	Primary Servicing
    Compensation	13
	 	 	 
	 	ARTICLE VI.	 
	 	 	 
	THE
    MASTER SERVICER AND THE PRIMARY SERVICER	14
	 	 	 
	Section 6.01.	Primary Servicer
    Not to Assign; Merger or Consolidation of the Primary Servicer	14
	 	 	 

 

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	Section 6.02.	Liability and Indemnification
    of the Primary Servicer and the Master Servicer	15
	 	 	 
	Section 6.03.	Representations
    and Warranties	18
	 	 	 
	 	ARTICLE
    VII.	 
	 	 	 
	PRIMARY
    SERVICER TERMINATION EVENTS; TERMINATION	19
	 	 	 
	Section 7.01.	Primary Servicer
    Termination Events; Primary Servicer Third Party Purchaser Non-Affiliate Covenant	19
	 	 	 
	Section 7.02.	Termination of Agreement	22
	 	 	 
	 	ARTICLE
    VIII.	 
	 	 	 
	MISCELLANEOUS
    PROVISIONS	24
	 	 
	Section 8.01.	Rating Agency Communications	24
	 	 	 
	Section 8.02.	Amendment	25
	 	 	 
	Section 8.03.	Governing Law; Submission
    to Jurisdiction; Waiver of Jury Trial	25
	 	 	 
	Section 8.04.	Notices	26
	 	 	 
	Section 8.05.	Consistency with
    PSA; Severability of Provisions	27
	 	 	 
	Section 8.06.	Inspection and Audit
    Rights	27
	 	 	 
	Section 8.07.	Protection of Confidential
    Information	27
	 	 	 
	Section 8.08.	Binding Effect;
    No Partnership; Counterparts	27
	 	 	 
	Section 8.09.	Third Party Beneficiaries	28
	 	 	 
	Section 8.10.	Article and Section
    Headings	28

 

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LIST OF EXHIBITS

 

Schedule I      Mortgage Loan Schedule

 

Exhibit “A”      Day One
Report

 

Exhibit “B”      Inspection
Reports

 

Exhibit “C”      Quarterly
Reports

 

Exhibit “D”      Remittance
Reports

 

Exhibit “E”      Form of Mortgagee
Clause for Insurance Policies

 

    iii 

     

    

 

THIS PRIMARY SERVICING
AGREEMENT dated as of February 1, 2018 is between Midland Loan Services, a Division of PNC Bank, National Association (together
with its successors and assigns permitted under the PSA, the “Master Servicer” or “Midland”), and Berkeley
Point Capital LLC (together with its successors and permitted assigns hereunder, the “Primary Servicer”).

 

PRELIMINARY STATEMENT

 

Pursuant to the
Pooling and Servicing Agreement (the “PSA”) dated as of February 1, 2018, among UBS Commercial Mortgage Securitization
Corp., as Depositor, Midland, as Master Servicer and as Special Servicer, Wells Fargo Bank, National Association, as Certificate
Administrator and as Trustee, and Park Bridge Lender Services LLC, as Operating Advisor and as Asset Representations Reviewer,
with respect to the UBS Commercial Mortgage Trust 2018-C8, Commercial Mortgage Pass-Through Certificates, Series 2018-C8 (a copy
of which has been delivered to the Primary Servicer), the Master Servicer shall be servicing the Mortgage Loans on behalf of the
Trust.

 

The Master Servicer
and the Primary Servicer desire to enter into an agreement whereby the Primary Servicer assumes and agrees to perform certain of
the Master Servicer’s servicing responsibilities with respect to the Mortgage Loans as more specifically set forth herein.

 

AGREEMENTS

 

NOW, THEREFORE,
in consideration of the recitals in the above Preliminary Statement which are made a contractual part hereof, and of the mutual
promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

ARTICLE I.

 

DEFINITIONS

 

Section 1.01.      Defined
Terms.

 

For purposes of
this Agreement, all capitalized terms not otherwise defined herein shall have the meanings set forth in the PSA, and the following
capitalized terms shall have the respective meanings set forth below.

 

“Accepted
Primary Servicing Practices”: As defined in Section 2.01 hereof.

 

“Additional
Primary Servicing Compensation”: As defined in Section 5.01 hereof.

 

“Agreement”:
This Primary Servicing Agreement, as the same may be amended or modified by the parties from time to time.

 

“CREFC®
Reporting Format”: The CREFC® Investor Reporting Package reporting and data format; provided, however, that if such
format is no longer applicable or in existence,

 

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then such other commercial mortgage servicing industry standard reporting and data
format reasonably approved by the Master Servicer.

 

“Day One
Report”: With respect to each of the Mortgage Loans, the report setting forth the Periodic Payment for the current month
and the amount of any unscheduled payments, Balloon Payments, Principal Prepayments, and Prepayment Premiums for which the Primary
Servicer has received notice, substantially in the form attached hereto as Exhibit “A”.

 

“Inspection
Reports”: The inspection reports substantially in the form attached hereto as Exhibit “B”.

 

“Losses”:
As defined in Section 6.02(b) hereof.

 

“Master
Servicer”: As defined in the first paragraph of this Agreement.

 

“Mortgage
Loan”: Each of the mortgage loans identified on the Mortgage Loan Schedule.

 

“Mortgage
Loan Schedule”:      The schedule of certain mortgage loans that is annexed to the Primary Servicer’s signature page
included herewith, which schedule sets forth certain information with respect to such mortgage loans, including, without limitation,
the related Primary Servicing Fee Rate.

 

“Primary
Servicer”: As defined in the first paragraph of this Agreement.

 

“Primary
Servicer Accounts”: The segregated Collection Accounts and the segregated Servicing Accounts maintained by the Primary
Servicer hereunder in the name of the Primary Servicer in trust for the Master Servicer on behalf of the Trustee in trust for the
benefit of the Holders.

 

“Primary
Servicer Parties”: As defined in Section 6.02(a) hereof.

 

“Primary
Servicer Remittance Date”: With respect to any Determination Date, the Business Day immediately following such Determination
Date.

 

“Primary
Servicer Termination Event”: Any primary servicer termination event as set forth in Section 7.01 hereof.

 

“Primary
Servicing Fee”: With respect to each Mortgage Loan and for any Distribution Date, that portion of the Servicing Fee payable
by the Master Servicer to the Primary Servicer, which shall be an amount per calendar month equal to the product of the Primary
Servicing Fee Rate and the Stated Principal Balance of such Mortgage Loan, as determined on the same basis as for the calculation
of the Servicing Fee under the PSA.

 

“Primary
Servicing Fee Rate”: The per annum rate for each Mortgage Loan as set forth in the related Mortgage Loan Schedule.

 

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“Primary
Servicing File”: With respect to each Mortgage Loan, all documents, information and records relating to such Mortgage
Loan that are necessary or appropriate to enable the Primary Servicer to perform its obligations hereunder and any additional documents
or information related thereto maintained or created in any form by the Primary Servicer, including, without limitation, all analysis,
working papers, inspections reports, written communications with any Mortgagor, and all other information collected from or concerning
any Mortgagor or the related Mortgaged Property in the Primary Servicer’s possession.

 

“PSA”:
As defined in the above Preliminary Statement to this Agreement.

 

“Quarterly
Reports”: The quarterly reports and certifications substantially in the form attached hereto as Exhibit “C”.

 

“Remittance
Reports”: The remittance reports substantially in the form attached hereto as Exhibit “D”.

 

“Responsible
Officer”: Any officer or employee of the Primary Servicer or the Master Servicer, as the case may be, involved in or
responsible for the administration, supervision or management of this Agreement and whose name and specimen signature appear on
a list prepared by each party and delivered to the other party, as such list may be amended from time to time by either party.

 

“Special
Servicer Non-Major Decision”: As defined in the PSA.

 

ARTICLE II.

 

RETENTION AND AUTHORITY OF PRIMARY SERVICER

 

Section 2.01.      Servicing
Standard; Commencement of Servicing Responsibilities.

 

The Master Servicer
hereby engages the Primary Servicer to perform, and the Primary Servicer hereby agrees to perform, servicing with respect to all
of the Mortgage Loans throughout the term of this Agreement, upon and subject to the terms, covenants and provisions hereof. The
Primary Servicer shall perform its services hereunder in accordance with (a) applicable laws, (b) the terms and provisions of the
Mortgage Loans, (c) the express terms hereof and the PSA, (d) subject to Section 2.03(b) hereof, the reasonable directions and
instructions of the Master Servicer (including, without limitation, the forms and report formats reasonably requested by the Master
Servicer) and (e) all requirements pertaining to the performance of such services under the PSA, including, without limitation,
the Servicing Standard. The above-described servicing standards are herein referred to as “Accepted Primary Servicing Practices.”

 

Section 2.02.      Sub-Subservicing.

 

To the extent necessary
for the Primary Servicer to comply with applicable laws, or if otherwise consented to by the Master Servicer, the Primary Servicer
may enter into any sub-subservicing agreement with a sub-subservicer that would permit such sub-subservicer to perform any or all
of the Primary Servicer’s servicing responsibilities under this Agreement;

 

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provided,
however, if such sub-subservicer would be a servicer as contemplated by Item 1108(a)(2) of Regulation AB, no such sub-subservicer
may be Risk Retention Affiliated with or a Risk Retention Affiliate of any Third Party Purchaser. Notwithstanding any sub-subservicing
agreement, the Primary Servicer shall remain obligated and primarily liable to the Master Servicer for the servicing and administering
of the Mortgage Loans in accordance with the provisions of this Agreement without diminution of such obligation or liability by
virtue of such sub-subservicing agreement to the same extent and under the same terms and conditions as if the Primary Servicer
were servicing the Mortgage Loans alone. Any such sub-subservicing agreement must be consistent with the provisions of Section
3.20 of the PSA.

 

Section 2.03.    Authority
of Primary Servicer.

 

(a)     Except
as otherwise provided herein and subject to the terms of this Agreement and the Master Servicer’s limitations of authority
as Master Servicer under the PSA, in performing its obligations hereunder, the Primary Servicer shall have full power and authority
to take any and all actions in connection with such obligations that it deems necessary or appropriate; provided, however, that
the Primary Servicer shall not take any of the following actions with respect to any Mortgage Loan without obtaining the prior
written consent of the Master Servicer (which consent may be in the form of an asset business plan approved in writing by the Master
Servicer and shall be subject to the prior approval of the Special Servicer, any mezzanine loan lender, AB Whole Loan Controlling
Holder or the Directing Certificateholder, if so required under the PSA, which approvals shall be requested by the Master Servicer
and upon receipt of all approvals by Master Servicer, Primary Servicer shall proceed to close such transactions):

 

(i)       the
modification, waiver or amendment, whether or not material, of or with respect to any Mortgage Loan, including, without limitation,
any forgiveness of principal, any change in the amount or timing of any payment of principal or interest, maturity, extension rights
or prepayment provisions or the substitution, release or addition of any collateral for any Mortgage Loan or relate to any waiver
of or granting of consent under a “due-on-sale” or “due-on-encumbrance” clause;

 

(ii)      the
granting or withholding of consent to any transfer of ownership of a Mortgaged Property or any transfer of any interest of an owner
of a Mortgaged Property and entering into any assumption agreement in connection therewith;

 

(iii)     the
granting or withholding of consent to any request for approval to place subordinate financing on a Mortgaged Property;

 

(iv)     the
determination of whether or not to release proceeds of condemnation or casualty insurance to the Mortgagor under any Mortgage Loan;

 

(v)      the
waiver of any Penalty Charge or Prepayment Premium under any Mortgage Loan;

 

(vi)     the
waiver of any late Penalty Charges in connection with any delinquent scheduled payment or Balloon Payment with respect to any Mortgage
Loan;

 

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(vii)     any
action to initiate, prosecute and manage foreclosure proceedings and other legal proceedings related thereto in connection with
any Mortgage Loan;

 

(viii)    the
permitting of or modification of a Mortgage Loan to permit a Principal Prepayment of a Mortgage Loan on a date other than its Due
Date;

 

(ix)       any
action requiring the consent of, or consultation with, the Master Servicer, the Directing Certificateholder, a AB Whole Loan Controlling
Holder, the Trustee, the Certificate Administrator, the Asset Representations Reviewer, the Operating Advisor, any party under
an Other Pooling and Servicing Agreement or the Special Servicer under the PSA;

 

(x)        the
granting or withholding consent to any request for defeasance of any Mortgage Loan;

 

(xi)       the
granting of any consent, approval or direction regarding the termination of (a) the related property manager or the designation
of any replacement property manager or (b) with respect to a hospitality property, the franchise or the designation of a new franchise;
or

 

(xii)      the
authorizing of any Servicing Transfer Event under PSA Section 3.19 and as defined in the definition of Servicing Transfer Event;
provided, however, that if the Primary Servicer determines that a Servicing Transfer Event should occur, the Primary Servicer shall
immediately provide to the Master Servicer notice of such event along with the Primary Servicer’s recommendation and supporting
documentation and further provide to the Master Servicer additional information as the Master Servicer reasonably requests; or

 

(xiii)     any
Major Decision or Special Servicer Non-Major Decision.

 

(b)     Regardless
of whether the consent or approval of the Master Servicer is required pursuant to this Agreement, the Primary Servicer shall take
any action that is directed by the Master Servicer which relates to the Primary Servicer’s obligations under this Agreement;
provided, however, that the Primary Servicer shall not be obligated to take any such action to the extent that the Primary Servicer
determines in its reasonable discretion that such action may cause (i) a violation of applicable laws, court orders or restrictive
covenants with respect to any Mortgage Loan or Mortgaged Property or (ii) a violation of any term or provision of a Mortgage Loan.

 

ARTICLE III.

 

SERVICES TO BE PERFORMED

 

Section 3.01.    Services
as Primary Servicer.

 

With respect to
each Mortgage Loan subject to this Agreement, the Primary Servicer shall, in accordance with Accepted Primary Servicing Practices
and subject to the supervision

 

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of the Primary Servicer by the Master Servicer, perform the following servicing activities on behalf
of the Master Servicer:

 

(a)     the
Primary Servicer shall perform the duties and obligations of the Master Servicer as the Master Servicer under PSA Sections 2.01(d),
(g) and (i) (conveyance of mortgage loans); 2.02(d), (g) and (h) (15Ga-1 notices); 2.03(b), (d), (f), (g), and (j)–(o) (repurchase
and substitution of loans); 3.01 (general servicing), 3.02 (collections); 3.03 (taxes and insurance; escrows; servicing accounts);
3.04 (collection account); 3.06 (investment of funds); 3.07 (insurance); 3.08 (due-on sale/encumbrance enforcement; assumptions);
3.10 (release of files); 3.12 (inspections and reports); 3.13 (access); 3.17 (additional obligations); 3.18 (defeasances and modifications);
3.19 (servicing transfers); 3.22 (Directing Certificateholder contact); 3.24 (intercreditor agreements); 3.29 (non-serviced loans
and serviced companion loans); 10.01 (REMIC administration); 10.03(b) (REMIC cooperation); Article XI (Exchange Act reporting and
Regulation AB compliance) and Article XII (asset representations reviewer file review compliance); provided, however, that:

 

(i)       no
Primary Servicer shall have any obligation to make Advances, provided that the Primary Servicer shall promptly notify the Master
Servicer in the event any Advance is required to be made or an expense of the Trust Fund is required to be incurred;

 

(ii)      Section
5.01 hereof shall control with respect to which fees or charges the Primary Servicer may retain under PSA Sections 3.05 and 3.11;

 

(iii)     PSA
Section 3.06 shall only be applicable with respect to the Primary Servicer Accounts;

 

(iv)     any
reports, certifications and other documentation which are required to be provided by the Master Servicer to the Trustee, the Certificate
Administrator, the Depositor, the Directing Certificateholder, a AB Whole Loan Controlling Holder, any Mortgage Loan Seller, the
Operating Advisor, the Asset Representations Reviewer, the Special Servicer or any party to an Other Pooling and Servicing Agreement
shall be provided by the Primary Servicer to the Master Servicer or as otherwise directed by the Master Servicer;

 

(v)      the
Primary Servicer shall not be responsible for any mortgage loan pool-wide reporting, including, without limitation, preparing,
signing and filing with the appropriate Person any reports, statements and information under PSA Section 4.02;

 

(vi)     except
as otherwise provided for in this Agreement and for so long as the Primary Servicer is an affiliate of the applicable Mortgage
Loan Seller, the Primary Servicer shall not be responsible for enforcing the obligations of such Mortgage Loan Seller under Section
5 of the applicable Mortgage Loan Purchase Agreement as provided for in the first paragraph of Section 2.03(f) of the PSA, but
if Primary Servicer is not an affiliate of the applicable Mortgage Loan Seller, 

 

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then the Primary Servicer shall perform all duties
and obligations required under Section 2.03(f) of the PSA; and

 

(vii)     subject
to Section 2.03(a)(xiii), the Primary Servicer shall not take any actions under and shall immediately forward to the Master Servicer
any request which would qualify as a Major Decision or Special Servicer Non-Major Decision and provide written notice to the Master
Servicer of issues arising with respect to Major Decisions and Special Servicer Non-Major Decisions;

 

(b)     the
Primary Servicer shall promptly notify the Master Servicer in writing upon discovery or receipt of notice by the Primary Servicer
of the occurrence of any event that causes, or with notice or the passage of time or both, would cause any Mortgage Loan to become
a Specially Serviced Loan in accordance with the definition of “Specially Serviced Loan” set forth in the PSA;

 

(c)     the
Primary Servicer shall promptly advise the Master Servicer of all material collection and customer service issues and furnish the
Master Servicer with copies of all written communications regarding such issues between the Primary Servicer and any Mortgagor
or any third party in connection with the Primary Servicer’s obligations hereunder;

 

(d)     on
or before 12:00 noon Central Time on each Primary Servicer Remittance Date, the Primary Servicer shall deliver to the Master Servicer
the Remittance Reports which reflect activity with respect to the Mortgage Loans through and including the close of business on
the date which is the Determination Date; and the Primary Servicer shall, to the extent necessary, deliver to the Master Servicer
a follow-up report in similar format which reflects additional activity with respect to the Mortgage Loans through and including
the date of any follow-up remittance;

 

(e)     on
or before 12:00 noon Central Time on each Primary Servicer Remittance Date, the Primary Servicer shall remit to the Master Servicer,
pursuant to wiring instructions from the Master Servicer, all amounts on deposit in the Collection Account maintained by the Primary
Servicer as of the close of business on the date which is one (1) Business Day prior to such Primary Servicer Remittance Date;
and the Primary Servicer shall remit to the Master Servicer within one (1) Business Day after receipt, any payments received by
the Primary Servicer after such initial remittance; and each of the foregoing remittances of funds may be net of any Primary Servicing
Fees due and payable to the Primary Servicer as payments in the nature of Additional Primary Servicing Compensation;

 

(f)      the
Primary Servicer shall remit to the Master Servicer, pursuant to wiring instructions from the Master Servicer, any whole or partial
Balloon Payments, unscheduled payments, Principal Prepayments or any Prepayment Premium and any interest thereon within one (1)
Business Day after receipt; and on the date of such remittance, the Primary Servicer shall deliver to the Master Servicer the Remittance
Reports relating to such remittance;

 

(g)     on
a quarterly and annual basis each year, the Primary Servicer shall prepare and deliver to the Master Servicer on or before the
date that is fifteen (15) days after the end of the respective quarter, the Quarterly Reports;

 

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(h)       on
a quarterly and annual basis each year, the Primary Servicer shall determine and analyze financial ratios and perform other financial
analysis required under the CREFC® Reporting Format and on or before the date that is thirty (30) days after receipt of the
related financial statements, prepare and deliver to the Master Servicer a report summarizing such analysis based upon the property
operating statements with respect to the related Mortgaged Property and the financial statements of the related Mortgagor and each
related guarantor collected by the Primary Servicer pursuant to PSA Section 3.12, which report shall be provided in electronic
format and shall be substantially in the form of the CREFC® Financial File included in the CREFC® Reporting Format (or
in such other reporting format as reasonably requested by the Master Servicer);

 

(i)       the
Primary Servicer shall prepare and deliver to the Master Servicer within thirty (30) days of any property inspection, the Inspection
Reports summarizing the results of any property inspections performed by the Primary Servicer pursuant to PSA Section 3.12;

 

(j)       the
Primary Servicer shall prepare and deliver to the Master Servicer the Day One Report on the first Business Day of each calendar
month;

 

(k)       the
Primary Servicer shall provide the Master Servicer with such reports and other information (in the Primary Servicer’s possession
or to the extent readily obtainable and as reasonably requested by the Master Servicer) with respect to the servicing of the Mortgage
Loans by the Primary Servicer hereunder in order for the Master Servicer to perform its duties under the PSA;

 

(l)       the
Primary Servicer shall (i) 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 a 15Ga-1 Repurchase Request, a withdrawal of a 15Ga-1 Repurchase Request
or a rejection of a 15Ga-1 Repurchase Request, (ii) promptly provide to the Master Servicer a copy of any 15Ga-1 Repurchase Request,
a withdrawal of a 15Ga-1 Repurchase Request or a rejection of a 15Ga-1 Repurchase Request received by the Primary Servicer;

 

(m)       the
Primary Servicer shall not prepare and/or provide any CREFC® Schedule AL File or any Schedule AL Additional File; provided,
however, the Primary Servicer shall (i) promptly provide to the Master Servicer any documentation in the Primary Servicer’s
possession reasonably requested by the Master Servicer in connection with the Master Servicer’s preparation and compilation of
any CREFC® Schedule AL File or any Schedule AL Additional File and (ii) cooperate with the Master Servicer in connection with
the Master Servicer’s preparation and compilation of any CREFC® Schedule AL File or any Schedule AL Additional File;

 

(n)       with
respect to letters of credit, if any, as the Master Servicer is required to hold original letters of credit under the PSA, the
Primary Servicer shall hold such original letters of credit if the Primary Servicer has (i) a vault or other adequate safety procedures
in place satisfactory to the Master Servicer, in its sole discretion, or (ii) outsourced such responsibility to a third party vendor,
which vendor shall be satisfactory to the Master Servicer, who has a vault or other adequate safety procedures in place satisfactory
to the Master Servicer, in its sole discretion;

 

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(o)       if
the Master Servicer notifies the Primary Servicer or the Primary Servicer otherwise obtains knowledge that a Mortgage Loan has
become an Excluded Controlling Class Loan under the PSA, then the Primary Servicer (prior to delivering any Excluded Information
to the Master Servicer) shall mark or label such information as “Excluded Information” and comply with all the requirements
set forth in the PSA with respect to such Excluded Controlling Class Loan;

 

(p)       with
respect to any request for materials by the Asset Representations Reviewer or a related Other Asset Representations Reviewer pursuant
to PSA Article XII regarding the Mortgage Loans, the Primary Servicer shall (i) promptly provide to the Master Servicer any documentation
in the Primary Servicer’s possession reasonably requested by the Master Servicer and (ii) cooperate with the Master Servicer
in order for the Master Servicer to comply with its related obligations under the PSA; and

 

(q)       with
respect to all servicing responsibilities of the Master Servicer under the PSA which are not being performed by the Primary Servicer
hereunder, the Primary Servicer shall (i) reasonably cooperate with the Master Servicer to facilitate the timely performance of
such servicing responsibilities, (ii) promptly provide to the Master Servicer any documentation in the Primary Servicer’s possession
reasonably requested by the Master Servicer and (iii) cooperate with the Master Servicer in order for the Master Servicer to comply
with its related obligations under the PSA.

 

Section 3.02.      Portfolio
Manager.

 

(a)       The
Primary Servicer shall designate a portfolio manager and other appropriate personnel to receive documents and communications from
the Master Servicer and to provide assistance to the Master Servicer consistent with the Master Servicer’s supervisory authority
over the Primary Servicer hereunder.

 

(b)       The
Master Servicer shall designate a portfolio manager and other appropriate personnel to receive documents and communications from
the Primary Servicer and to provide to the Primary Servicer information, materials and correspondence relating to the Mortgage
Loans and the related Mortgagors which may be necessary or appropriate to enable the Primary Servicer to perform its obligations
hereunder.

 

Section 3.03.      Maintenance
of Errors and Omissions and Fidelity Coverage.

 

(a)       The
mortgagee clause to be used in maintaining any property-level insurance required under Section 3.07 of the PSA shall be as set
forth in Exhibit E hereto, which may be amended from time-to-time by the Master Servicer.

 

(b)       The
Primary Servicer shall obtain and maintain at its own expense, and keep in full force and effect throughout the term of this Agreement,
a fidelity bond and an errors and omissions insurance policy covering the Primary Servicer’s officers and employees acting
on behalf of the Primary Servicer in connection with its activities under this Agreement in form and amount which satisfies the
fidelity bond and errors and omissions insurance policy requirements under PSA 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 request a certificate of insurance or
other

 

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evidence of such bond and 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.

 

Section 3.04.     Delivery
and Possession of Servicing Files.

 

The Primary Servicer
hereby acknowledges receipt of the Primary Servicing Files. The contents of each Primary Servicing File delivered to the Primary
Servicer are and shall be held in trust by the Primary Servicer for the benefit of the Trust Fund as the owner thereof; the Primary
Servicer’s possession of the contents of the Primary Servicing File so delivered is for the sole purpose of servicing the
related Mortgage Loan; and such possession by the Primary Servicer shall be in a custodial capacity only. The Primary Servicer
shall release its custody of the contents of the Primary Servicing File only in accordance with written instructions from the Master
Servicer, and upon request of the Master Servicer, the Primary Servicer shall deliver to the Master Servicer the Primary Servicing
File or a copy of any document contained therein.

 

Section 3.05.     Annual
Compliance Statements.

 

(a)       The
Primary Servicer shall, on or before the fifth (5th) Business Day preceding March 1st of each year, commencing
February 22, 2019, deliver to the Master Servicer an Officer’s Certificate in a form that satisfies the requirements of Section
11.09 of the PSA (or such other form, similar in substance, as may be acceptable to the Depositor and the Master Servicer) stating,
as to the signer thereof, that (i) a review of such Primary Servicer’s activities during the preceding calendar year
or portion thereof and of such Primary Servicer’s performance under this Agreement has been made under such officer’s
supervision and (ii) to the best of such officer’s knowledge, based on such review, such Primary Servicer has fulfilled
all its obligations under this Agreement in all material respects throughout such year or portion thereof, or, if there has been
a failure to fulfill any such obligation in any material respect, specifying each such failure known to such officer and the nature
and status thereof. Such Officer’s Certificate shall be provided in EDGAR-Compatible Format, or in such other format agreed
upon by the Master Servicer and Primary Servicer. Primary Servicer shall cooperate with the Master Servicer and/or the Depositor
if either party consults with the Primary Servicer as to the nature of any failures by the Primary Servicer with respect to the
Mortgage Loans in the fulfillment of any of the Primary Servicer’s obligations hereunder. In any year that the Primary Servicer
has received written confirmation from the Depositor or the Master Servicer that a report on Form 10-K is not required to be filed
in respect of the Trust for the preceding calendar year, the Primary Servicer shall not be required to deliver such statement until
April 1 of such year.

 

(b)       In
the event the Primary Servicer is terminated or resigns pursuant to the terms of this Agreement, Primary Servicer shall provide
an annual statement of compliance pursuant to this Section 3.05 with respect to the period of time that Primary Servicer
was subject to this Agreement.

 

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Section 3.06.     Annual
Reports on Assessment of Compliance with the Servicing Criteria.

 

(a)       On
or before the fifth (5th) Business Day preceding March 1st of each year, commencing February 22, 2019, the
Primary Servicer, at its own expense, shall furnish to the Master Servicer a report substantially in a form that satisfies the
requirements of Section 11.10 of the PSA on an assessment of compliance with the Servicing Criteria applicable to it that complies
in all material respects with the requirements of Item 1122 of Regulation AB and contains (i) a statement by Primary Servicer
of its responsibility for assessing compliance with the Relevant Servicing Criteria, (ii) a statement that Primary Servicer
used the Relevant Servicing Criteria to assess compliance with the Relevant Servicing Criteria, (iii) such Primary Servicer’s
assessment of compliance with the Relevant Servicing Criteria as of and for the period ending the end of the fiscal year covered
by Form 10-K, including, if there has been any material instance of noncompliance with the Relevant Servicing Criteria, a discussion
of each such failure and the nature and status thereof, and (iv) a statement that a registered public accounting firm has
issued an attestation report on Primary Servicer’s assessment of compliance with the Relevant Servicing Criteria as of and
for such period. Such report shall be provided in EDGAR-Compatible Format, or in such other format agreed upon by the Master Servicer
and Primary Servicer.

 

(b)       Each
such report shall be addressed to the Master Servicer and signed by an authorized officer of Primary Servicer, and shall address
the Relevant Servicing Criteria set forth in Section 11.10 of and Exhibit Z to the PSA. Primary Servicer shall cooperate with the
Master Servicer and/or the Depositor if either party consults with the Primary Servicer as to the nature of any material instance
of noncompliance with the Relevant Servicing Criteria.

 

(c)       In
any year that the Primary Servicer has received written confirmation from the Depositor or the Master Servicer that a report on
Form 10-K is not required to be filed in respect of the Trust for the preceding calendar year, the Primary Servicer shall not be
required to deliver such assessments until April 1 of such year.

 

(d)       Primary
Servicer hereby acknowledges and agrees that the Relevant Servicing Criteria set forth in Section 11.10 of and Exhibit Z to the
PSA is appropriately set forth with respect to Primary Servicer.

 

(e)       In
the event the Primary Servicer is terminated or resigns pursuant to the terms of this Agreement, Primary Servicer shall provide
an annual assessment of compliance pursuant to this Section 3.06, coupled with an attestation as required in Section
3.07 with respect to the period of time that Primary Servicer was subject to this Agreement.

 

Section 3.07.     Annual
Independent Public Accountants’ Attestation Report.

 

(a)       On
or before the fifth (5th) Business Day preceding March 1st of each year, commencing February 22, 2019, the
Primary Servicer shall, at its own expense, cause a registered public accounting firm and that is a member of the American Institute
of Certified Public Accountants to furnish a report to the Master Servicer to the effect that (i) it has obtained a representation
regarding certain matters from the management of Primary Servicer, which includes an assertion that Primary Servicer has complied
with the Relevant Servicing Criteria

 

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applicable to it and (ii) on the basis of an examination conducted by such firm in accordance
with standards for attestation engagements issued or adopted by the PCAOB, it is issuing an opinion as to whether Primary Servicer’s
assessment of compliance with the Relevant Servicing Criteria applicable to it was fairly stated in all material respects. In the
event that an overall opinion cannot be expressed, such registered public accounting firm shall state in such report why it was
unable to express such an opinion. Each such related accountant’s attestation report shall be made in accordance with Rules
1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the Exchange Act. Such report must be available for general
use and not contain restricted use language. Such report shall be provided in EDGAR-Compatible Format, or in such other format
agreed upon by the Master Servicer and Primary Servicer.

 

(b)       Primary
Servicer shall cooperate with the Master Servicer and/or the Depositor if either party consults with the Primary Servicer as to
the nature of any defaults by Primary Servicer in the fulfillment of Primary Servicer’s obligations hereunder.

 

(c)       In
any year that the Primary Servicer has received written confirmation from the Depositor or the Master Servicer that a report on
Form 10-K is not required to be filed in respect of the Trust for the preceding calendar year, the Primary Servicer shall not be
required to deliver such report until April 1 of such year.

 

Section 3.08.      Sarbanes-Oxley
Certification.

 

(a)       On
or before the fifth (5th) Business Day preceding March 1st of each year commencing February 22, 2019, the
Primary Servicer shall provide to the Master Servicer (for delivery to the Certifying Person), a Performance Certification in the
form attached as Exhibit Y-2 to the PSA, on which the Master Servicer, the Certifying Person, the entity for which the Certifying
Person acts as an officer (if the Certifying Person is an individual), and each entity’s officers, directors and Affiliates
(collectively the Certification Parties) can reasonably rely. In addition, Primary Servicer shall execute a reasonable reliance
certificate to enable the Certification Parties to rely upon each (i) annual compliance statement provided pursuant to Section
3.05 hereof, (ii) annual report on assessment of compliance with servicing criteria provided pursuant to Section 3.06 hereof and
(iii) accountant’s report provided pursuant to Section 3.07 hereof, and shall include a certification in the Performance
Certification that each such annual compliance statement or report discloses any deficiencies or defaults described to the registered
public accountants of the Primary Servicer to enable such accountants to render the certificates provided for in Section 3.07 hereof.
In the event the Primary Servicer is terminated or resigns pursuant to the terms of this Agreement, the Primary Servicer shall
provide a certification to the Master Servicer for delivery to the Certifying Person pursuant to this Section 3.08 with respect
to the period of time it was subject to this Agreement. Each such Performance Certification shall be provided in EDGAR-Compatible
Format, or in such other format agreed upon by the Master Servicer and the Primary Servicer.

 

(b)       Notwithstanding
anything to the contrary contained in this Section 3.08, with respect to each year in which the Trust is not subject to the reporting
requirements of the Exchange Act, Primary Servicer shall not be required to deliver any certification under this Section 3.08.

 

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Section 3.09.      Delivery
of Mortgage Loan Purchase Agreement.

 

Following the Master
Servicer’s receipt of the Mortgage Loan Purchase Agreement from the Depositor, the Master Servicer shall provide a copy of such
Mortgage Loan Purchase Agreement to the Primary Servicer.

 

ARTICLE IV.

 

PRESERVATION OF THE REMICS.

 

The Primary Servicer
shall not take any action (whether or not authorized hereunder) that would result in an Adverse REMIC Event. Primary Servicer shall
fully cooperate with the Master Servicer in connection with avoiding (i) the imposition of a tax on any portion of the Trust Fund,
(ii) the failure of any Trust REMIC to qualify as a REMIC, or (iii) the failure of the Grantor
Trust to qualify as a grantor trust.

 

ARTICLE V.

 

PRIMARY SERVICER’S COMPENSATION AND EXPENSES

 

Section 5.01.      Primary
Servicing Compensation.

 

(a)       As
compensation for its activities hereunder, the Primary Servicer shall be entitled to receive the Primary Servicing Fee. Anything
herein to the contrary notwithstanding, the Primary Servicer shall be paid such Primary Servicing Fee at such times as, and only
to the extent that, the Master Servicer receives its Servicing Fee with respect to each Mortgage Loan under the PSA. Except as
provided below, any reductions in the Servicing Fee that may be required under the PSA with respect to Prepayment Interest Shortfalls
shall not affect the amount of the Primary Servicing Fee payable to the Primary Servicer and, consequently, the Primary Servicer
shall not be entitled to any Prepayment Interest Excess; provided, however, that in the event of a breach of Section 2.03(a)(viii)
of this Agreement by the Primary Servicer, on or before 1:00 p.m. New York City time on the Primary Servicer Remittance Date following
such breach, the Primary Servicer shall remit to the Master Servicer, pursuant to wiring instructions from the Master Servicer,
the amount as of any Distribution Date equal to the aggregate amount of any Prepayment Interest Shortfall incurred in connection
with Principal Prepayments received in respect of the Mortgage Loans. If such Prepayment Interest Shortfall is not remitted to
the Master Servicer by 1:00 p.m. New York City time on the Primary Servicer Remittance Date, then the Primary Servicer shall also
remit to the Master Servicer the Prepayment Interest Shortfall and full interest on such Prepayment Interest Shortfall at the Reimbursement
Rate from and including such Primary Servicer Remittance Date but excluding the date that such Prepayment Interest Shortfall is
received by the Master Servicer.

 

(b)       The
Primary Servicer shall also be entitled to retain, with respect to each related Mortgage Loan, as additional Primary Servicing
compensation (the “Additional Primary Servicing Compensation”), the following: (i) to the extent the Master
Servicer is entitled to retain such amounts under the PSA and actually received such amounts, all Penalty Charges (to the extent
the Primary Servicer is performing the related collection work and to the extent not

 

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required to be offset against with respect
to the related Mortgage Loan under PSA Section 3.11(d) (1) interest on Advances or (2) certain additional Trust expenses), all
amounts collected for checks returned for insufficient funds relating to the Primary Servicer Accounts, all charges for beneficiary
statements to the extent such beneficiary statements were prepared by the Primary Servicer, 50% of the Master Servicer’s
share of any assumption fees and assumption application fees and 50% of the Master Servicer’s share of any and all Excess
Modification Fees, waiver, consent and earnout fees, review fees and similar fees; and (ii) subject to PSA Section 3.06, any interest
or other income earned on deposits in the related Primary Servicer Accounts; provided, however, that the Primary Servicer shall
be required to promptly remit to the Master Servicer any amounts received from or on behalf of any Mortgagor which the Primary
Servicer is not entitled to retain under this paragraph.

 

Notwithstanding the
foregoing, the Primary Servicer shall not be entitled to any Additional Primary Servicing Compensation in the form of fees earned
with respect to the processing of any Special Servicer Non-Major Decision or Major Decision performed by the Special Servicer;
provided, however, if the Master Servicer and the Primary Servicer mutually agree that the Primary Servicer shall process any Special
Servicer Non-Major Decision or Major Decision following approval of such decision by the Special Servicer and the Primary Servicer
processes such Special Servicer Non-Major Decision or Major Decision, the Primary Servicer shall be entitled to the applicable
fee as described above.

 

(c)       Except
as otherwise provided herein or in the PSA, the Primary Servicer shall pay all its overhead and similar expenses incurred by it
in connection with its servicing activities hereunder.

 

ARTICLE VI.

 

THE MASTER SERVICER AND THE PRIMARY SERVICER

 

Section 6.01.      Primary
Servicer Not to Assign; Merger or Consolidation of the Primary Servicer.

 

(a)       Except
as otherwise provided in Section 6.01(b) hereof, or in Sections 2.02 or 3.02 hereof, the Primary Servicer shall not assign this
Agreement for any reason or the servicing hereunder or delegate its rights or duties hereunder or any portion thereof without the
prior written consent of the Master Servicer.

 

(b)       The
Primary Servicer shall not resign from its obligations and duties hereunder without giving the Master Servicer sixty (60) days
prior written notice thereof or such lesser notice as may be acceptable to the Master Servicer to enable the Master Servicer to
assume all of the Primary Servicer’s rights, powers, duties and obligations under this Agreement; provided, however, that
only fifteen (15) days prior written notice shall be required in connection with a resignation of the Primary Servicer as a result
of the Master Servicer’s failure to consent to any matters set forth in this Section 6.01.

 

(c)       The
Primary Servicer may be merged or consolidated with or into any Person, or transfer all or substantially all of its assets to any
Person, in which case any Person resulting from any merger or consolidation to which the Primary Servicer shall be a party, or
any Person

 

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succeeding to the business of the Primary Servicer, shall be the successor of the Primary Servicer hereunder and shall
be deemed to have assumed all of the liabilities of the Primary Servicer hereunder, provided that, in any such case, the Primary
Servicer meets the requirements of the PSA and has obtained the prior written consent of the Master Servicer. 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 (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 (ii) the Master
Servicer consents to such merger, consolidation or transfer. Upon written demand by the Master Servicer, such successor shall be
required to promptly execute and deliver to the Master Servicer an agreement which contains an assumption by such Person of the
due and punctual performance and observance of each covenant and condition to be performed and observed by the Primary Servicer
under this Agreement from and after the date of such agreement. Notwithstanding anything to the contrary, the Primary Servicer
shall promptly notify the Master Servicer, the Certificate Administrator and the Trustee in the event the Primary Servicer becomes
an Affiliate of the Trustee.

 

Section 6.02.    Liability
and Indemnification of the Primary Servicer and the Master Servicer.

 

(a)       Neither
the Primary Servicer nor any of the partners, directors, officers, shareholders, members, managers, employees or agents of the
Primary Servicer (the “Primary Servicer Parties”) shall be under any liability to the Master Servicer for 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 Parties against any liability which would be imposed
by reason of any breach of its warranties or representations made herein, or against any liability that would otherwise be imposed
on the Primary Servicer by reason of the Primary Servicer’s willful misconduct, bad faith or negligence (or by reason of any specific
liability imposed on the Primary Servicer pursuant to Section 2.01 hereof, for a breach of the Accepted Primary Servicing Practices)
in the performance of its obligations and duties hereunder or by reason of its negligent disregard of its obligations and duties
hereunder. 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. The Primary Servicer Parties may rely in good faith on any document of
any kind which, prima facie, is properly executed and submitted by any appropriate Person respecting any matters arising hereunder.

 

(b)       The
Primary Servicer Parties shall be indemnified and held harmless by the Master Servicer against any and all claims, losses, penalties,
fines, forfeitures, reasonable legal fees and related costs, judgments, and any other costs, liabilities, fees and expenses incurred
in connection with any actual or threatened legal or administrative action (whether in equity or at law) or claim relating to this
Agreement (collectively, the “Losses”) incurred by the Primary Servicer (i) by reason of the Master Servicer’s
willful misconduct, bad faith, negligence in the performance of its obligations and duties hereunder or negligent disregard of
its obligations and duties hereunder or (ii) in connection with, or relating to, this Agreement, the Mortgage Loans or the Certificates,
other than any Losses (x) that are specifically required to be borne by Primary

 

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Servicer without right of reimbursement pursuant
to the terms hereof or (y) incurred by reason of (1) a breach of any representation or warranty by Primary Servicer, or (2) willful
misconduct, bad faith or negligence of Primary Servicer in the performance of its respective obligations and duties hereunder or
negligent disregard of its respective obligations and duties under this Agreement; provided, however, that the indemnification
under clause (ii) above shall be strictly limited to any actual amount of indemnification received by the Master Servicer under
the PSA as a result of pursuing the Trust Fund on behalf of the Primary Servicer for such indemnification.

 

(c)       The
Master Servicer and any partners, directors, officers, shareholders, members, managers, employees or agents of the Master Servicer
shall be indemnified and held harmless by the Primary Servicer against any Losses incurred by the Master Servicer by reason of
(i) any breach by the Primary Servicer of a representation or warranty made by it herein or in the PSA or (ii) any willful misconduct,
bad faith or negligence by the Primary Servicer in the performance of its obligations and duties hereunder or under the PSA or
by reason of negligent disregard of such obligations and duties. The Master Servicer and any partner, director, officer, shareholder,
member, manager, employee or agent of the Master Servicer may rely in good faith on any document of any kind which, prima facie,
is properly executed and submitted by any appropriate Person respecting any matters arising hereunder.

 

(d)       The
Primary Servicer shall indemnify and hold harmless the Master Servicer, each Certification Party, the Depositor, each Other Depositor
and any employee, director, officer and Affiliate of the Master Servicer, each Certification Party, the Depositor and any Other
Depositor from and against any and all claims, losses, damages, penalties, fines, forfeitures, legal fees and expenses and related
costs, judgments and any other costs, fees and expenses incurred by such indemnified party arising out of (i) a breach of the Primary
Servicer’s obligation to provide any of the annual compliance statements or annual servicing criteria compliance reports or attestation
reports pursuant to this Agreement and the PSA, (ii) the negligence, bad faith or willful misconduct on the Primary Servicer’s
part in the performance of such obligations, (iii) any failure by Primary Servicer to identify itself (or any sub-subservicer the
Primary Servicer enters into a sub-subservicing agreement with pursuant to Section 2.02 hereof) as a Servicing Function Participant
pursuant to the PSA, (iv) any failure by Primary Servicer to comply with the obligations of a Servicing Function Participant under
the PSA or (v) any Deficient Exchange Act Deliverable.

 

In addition, the
Primary Servicer shall cooperate (and require each Servicing Function Participant and Additional Servicer retained by it to cooperate
under any applicable sub-subservicing agreement) with the Depositor or Other Depositor, as applicable, and the Master Servicer
as necessary for the Depositor or Other Depositor, as applicable, and the Master Servicer to conduct any reasonable due diligence
necessary to evaluate and assess any material instances of non-compliance disclosed in any of the deliverables required by the
applicable Reporting Requirements.

 

In connection with
comments provided to the Depositor or any Other Depositor from the Commission or its staff regarding information (x) delivered
by the Primary Servicer, (y) regarding the Primary Servicer, and (z) prepared by the Primary Servicer or any registered public
accounting firm, attorney or other agent retained by the Primary Servicer to prepare such information, which information is contained
in a report filed by the Depositor or Other Depositor 

 

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under the Reporting
Requirements and which comments are received subsequent to the Depositor’s or Other Depositor’s filing of such report, upon
receipt of such comments from the Depositor or Other Depositor, the Master Servicer shall promptly provide to the Primary
Servicer any such comments which relate to the Primary Servicer. Primary Servicer shall be responsible for timely preparing a
written response to the Commission or its staff for inclusion in the Depositor’s, Other Depositor’s or the Master
Servicer’s, as applicable, response to the Commission or its staff, unless Primary Servicer elects, with the consent of the
Master Servicer (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; provided that if the
Primary Servicer (or a sub-servicer retained by the Primary Servicer) is a Servicing Function Participant or an Additional
Servicer, the Primary Servicer shall provide copies to the Master Servicer of all material communications pursuant to this
paragraph. If such election is made, the Primary Servicer shall be responsible for directly negotiating such response and/or
resolution with the Commission or its staff in a timely manner; provided, that (i) Primary Servicer shall use reasonable
efforts to keep the Depositor or Other Depositor, as applicable, and the Master Servicer informed of its progress with the
Commission or its staff and copy the Depositor or Other Depositor, as applicable, and the Master Servicer on all
correspondence with the Commission or its staff and provide the Depositor or Other Depositor, as applicable, and the
Master Servicer with the opportunity to participate (at the Depositor’s, Other Depositor’s or Master Servicer’s, as
applicable, expense) in any telephone conferences and meetings with the Commission or its staff and (ii) the Master Servicer
shall cooperate with the Primary Servicer in order to authorize the Primary Servicer and its representatives to respond to
and negotiate directly with the Commission or its staff with respect to any comments received from the Commission or its
staff relating to Primary Servicer and to notify the Commission or its staff of such authorization. The Master Servicer and
the Primary Servicer shall cooperate and coordinate with each other with respect to any requests made to the Commission or
its staff for any extension of time for submitting a response or compliance. All reasonable out-of-pocket costs and expenses
incurred by the Depositor or Other Depositor, as applicable, and the Master Servicer (including reasonable legal fees and
expenses of outside counsel to the Depositor or Other Depositor, as applicable, and the Master Servicer) in connection with
the foregoing (other than those costs and expenses required to be at the Depositor’s or Other Depositor’s, as applicable,
expense as set forth above) 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 or Other Depositor, as
applicable, and/or the Master Servicer, as applicable. The Primary Servicer shall use commercially reasonable efforts to
cause any Servicing Function Participant or Additional Servicer retained by it to comply with the foregoing by inclusion of
similar provisions in the related sub-subservicing or similar agreement.

 

If the indemnification
provided for in, or contemplated by, this Section 6.02(d) is unavailable or insufficient to hold harmless the Master Servicer,
any Certification Party, the Depositor, any Other Depositor or any employee, director, officer or Affiliate of the Master Servicer,
the Depositor or any Other 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 Article XI of the PSA, this

 

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Agreement or the Primary Servicer’s
negligence, bad faith or willful misconduct in connection therewith. The Primary Servicer shall cause any sub-subservicer with
which it enters into a servicing relationship with respect to the Mortgage Loans to agree to the foregoing indemnification and
contribution obligations.

 

(e)       The
indemnification, exculpation, and other protections and provisions in this Section 6.02 shall survive the termination of this Agreement
or the resignation of the Master Servicer or the Primary Servicer.

 

Section 6.03.     Representations
and Warranties.

 

The Primary Servicer
hereby represents, warrants and covenants to the Master Servicer that as of the date hereof:

 

(a)       The
Primary Servicer is duly organized, validly existing and in good standing under the laws of the state of its organization and is
in compliance with the laws of each jurisdiction in which any Mortgaged Property is located to the extent necessary to perform
its obligations under this Agreement;

 

(b)       The
execution and delivery of this Agreement by the Primary Servicer and its performance and compliance with the terms of this Agreement
do not (i) violate the Primary Servicer’s organizational documents, (ii) constitute a default (or an event that, with notice or
lapse of time, or both, would constitute a default) under, or result in the breach of, any material contract, or other material
instrument to which the Primary Servicer is a party or which is applicable to it or any of the assets or (iii) violate any law,
rule, regulation, order, judgment or decree to which the Primary Servicer or its property is subject, which, in the case of either
of clause (ii) or (iii), does or is likely to materially and adversely affect the Primary Servicer’s ability to perform hereunder
or its financial condition;

 

(c)       The
Primary Servicer has the full corporate power and authority to enter into and consummate all transactions to be performed by it
as contemplated by this Agreement, has duly authorized the execution, delivery and performance of this Agreement, and has duly
executed and delivered this Agreement;

 

(d)       This
Agreement, assuming due authorization, execution and delivery by the Master Servicer, constitutes a valid, legal and binding obligation
of the Primary Servicer, enforceable against it in accordance with the terms of this Agreement, subject to (i) applicable bankruptcy,
insolvency, reorganization, receivership, moratorium and other laws affecting the enforcement of creditors’ rights generally,
and, to the extent applicable, the rights of creditors of national banks or of “financial companies” (as defined in
Section 201 of the Dodd-Frank Act) or their Affiliates, and (ii) general principles of equity, regardless of whether such enforcement
is considered in a proceeding in equity or at law;

 

(e)       The
Primary Servicer is not in violation of, and the execution and delivery of this Agreement by the Primary Servicer and its performance
and compliance with the terms of this Agreement will not constitute a violation of, any law, any order or decree of any court or
arbiter, or any order, regulation or demand of any federal, state or local governmental or regulatory authority, which violation,
in the Primary Servicer’s good faith and reasonable judgment, is

 

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likely to affect materially and adversely the ability of the Primary
Servicer to perform its obligations hereunder or the financial condition of the Primary Servicer;

 

(f)       No
litigation is pending or, to the best of the Primary Servicer’s knowledge, threatened against the Primary Servicer that would prohibit
the Primary Servicer from entering into this Agreement, or, in the Primary Servicer’s good faith and reasonable judgment, is likely
to materially and adversely affect the ability of the Primary Servicer to perform its obligations under the Agreement or the financial
condition of the Primary Servicer;

 

(g)      Each
officer and employee of the Primary Servicer that has responsibilities concerning the servicing and administration of Mortgage
Loans is covered by errors and omissions insurance and the fidelity bond maintained by the Primary Servicer in the amounts and
with the coverage required by PSA Section 3.07;

 

(h)      No
consent, approval, authorization or order of, registration or filing with, or notice to, any governmental authority or court is
required under federal or state law for the execution, delivery and performance by the Primary Servicer of, or compliance by the
Primary Servicer with, this Agreement or the Primary Servicer’s consummation of any transactions contemplated hereby, other
than (i) such consents, approvals, authorizations, orders, qualifications, registrations, filings or notices as have been obtained,
made or given prior to the actual performance by the Primary Servicer of its obligations under this Agreement or (ii) where the
lack of such consent, approval, authorization, order, qualification, registration, filing or notice would not have a material adverse
effect on the performance by the Primary Servicer under this Agreement;

 

(i)       The
Primary Servicer is not an Affiliate of the Trustee and is not a Prohibited Party; and

 

(j)       The
Primary Servicer is not Risk Retention Affiliated with any Third Party Purchaser.

 

The foregoing representations
and warranties shall survive the execution and delivery of this Agreement. Upon discovery by either the Master Servicer or the
Primary Servicer of a breach of any of the foregoing representations and warranties, the party discovering such breach shall give
prompt written notice thereof to the other party.

 

ARTICLE VII.

 

PRIMARY SERVICER TERMINATION EVENTS; TERMINATION

 

Section 7.01.    Primary
Servicer Termination Events; Primary Servicer Third Party Purchaser Non-Affiliate Covenant.

 

(a)     “Primary
Servicer Termination Event”, wherever used herein with respect to any Primary Servicer, means any one of the following events:

 

(i)       any
failure by the Primary Servicer to remit to the Primary Servicer Accounts, or to remit to the Master Servicer, any amount required
to be so

 

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remitted by the Primary Servicer pursuant to and in accordance with this Agreement; or

 

(ii)       any
failure on the part of the Primary Servicer duly to observe or perform in any material respect any of the other covenants or obligations
which continues unremedied for a period of twenty (20) days (or (A) 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 under this Agreement in respect of Exchange
Act reporting items (after any applicable grace periods) or (B) ten (10) days in the case of a failure to pay the premium for any
insurance policy required to be maintained hereunder or such shorter period (not less than one (1) Business Day) as may be required
to avoid the lapse of insurance) after the date on which written notice of such failure, requiring the same to be remedied, shall
have been given to the Primary Servicer by the Master Servicer, provided, however, if such failure with a twenty (20) day cure
period is capable of being cured and the Primary Servicer is diligently pursuing such cure, such twenty (20) day period shall be
extended for an additional twenty (20) days; provided that the Primary Servicer has commenced to cure such failure within the initial
twenty (20) day period and has certified that it has diligently pursued, and is continuing to pursue, a full cure; provided, further,
however, that such extended period shall not apply to the obligations regarding Exchange Act reporting; or

 

(iii)      any
breach on the part of the Primary Servicer of any representation or warranty contained in Section 6.03 hereof, which materially
and adversely affects the interests of any Class of Certificateholders or Companion Holders and which continues unremedied for
a period of twenty (20) 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 such breach is capable of being cured and the Primary
Servicer is diligently pursuing such cure, such twenty (20) day period shall be extended for an additional twenty (20) days; provided
that the Primary Servicer has commenced to cure such failure within the initial twenty (20) day period and has certified that it
has diligently pursued, and is continuing to pursue, a full cure; or

 

(iv)      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 or receiver,
liquidator, trustee or similar official in any bankruptcy, insolvency, readjustment of debt, marshalling 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 forty-five (45) days;
or

 

(v)       the
Primary Servicer shall consent to the appointment of a conservator, receiver, liquidator, trustee or similar official in any bankruptcy,
insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings

 

     20

     

    

 

of or relating to the Primary Servicer,
or of or relating to all or substantially all of its property; or

 

(vi)       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

 

(vii)      any
Rating Agency (or, in the case of Serviced Pari Passu Companion Loan Securities, any Companion Loan Rating Agency) has (A) qualified,
downgraded or withdrawn its rating or ratings of one or more Classes of Certificates or one or more classes of Serviced Pari Passu
Companion Loan Securities or (B) placed one or more Classes of Certificates or one or more classes of Serviced Pari Passu
Companion Loan Securities on “watch status” in contemplation of rating downgrade or withdrawal (and in the case of
clause (A) or (B), such action has not been withdrawn by such Rating Agency within 60 days of such rating action) and, in the case
of either of clauses (A) or (B), such Rating Agency publicly cited servicing concerns with the Master Servicer (because of actions
of the Primary Servicer) or the Primary Servicer as the sole or a material factor in such rating action; or

 

(viii)     a
Servicer Termination Event (as defined in the PSA) by the Master Servicer under PSA Section 7.01 which Servicer Termination Event
occurred as a result of the failure of the Primary Servicer to perform any obligation required hereunder; or

 

(ix)        the
failure of the Primary Servicer to comply with any of the requirements under Sections 3.05, 3.06, 3.07 and 3.08 of this Agreement
applicable to such Primary Servicer, including the failure to deliver any reports or certificates at the time such report or certification
is required under Sections 3.05, 3.06, 3.07 and 3.08 of this Agreement which continues unremedied for five (5) days after
the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Primary Servicer
by the Master Servicer; or

 

(x)        the
Primary Servicer or any primary servicer or sub-subservicer appointed by the Primary Servicer after the Closing Date, 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 Article XI of the PSA or under this Agreement or to the applicable master servicer under any other pooling
and servicing agreement that the Depositor is a party to; or

 

(xi)       the
Primary Servicer or any primary servicer or sub-subservicer appointed by the Primary Servicer after the Closing Date, 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 for any party to the PSA to perform its obligations under Article XI of the
PSA or

 

     21

     

    

 

under the Exchange Act reporting items required under any other pooling and servicing agreement that the Depositor is a
party to;

 

then, and in each and every case, so
long as an Primary Servicer Termination Event shall not have been remedied, the Master Servicer may, by notice in writing to the
Primary Servicer, in addition to whatever rights the Master Servicer may have at law or in equity, including injunctive relief
and specific performance, immediately terminate all of the rights and obligations of the Primary Servicer under this Agreement
and in and to the Mortgage Loans and the proceeds thereof, subject to Section 7.02 hereof, without the Master Servicer incurring
any penalty or fee of any kind whatsoever 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 Primary Servicer Termination Event. On or after the receipt by the Primary Servicer of
such written notice of termination from the Master Servicer, all authority and power of the Primary Servicer in this Agreement,
whether with respect to the Mortgage Loans or otherwise, shall pass to and be vested in the Master Servicer, and the Primary Servicer
agrees to cooperate with the Master Servicer in effecting the termination of the Primary Servicer’s responsibilities and
rights hereunder, including, without limitation, the remittance of funds and the transfers of the Primary Servicing Files as set
forth in Section 7.02. Notwithstanding the foregoing, upon any termination of the Primary Servicer, the Primary Servicer will be
entitled to receive all accrued and unpaid Primary Servicing Fees and Additional Primary Servicing Compensation through the date
of termination.

 

(b)       Upon
discovery by the Primary Servicer of any Primary Servicer Termination Event (but regardless of whether any notice has been given
as provided in this Agreement or any cure period provided herein has expired), the Primary Servicer shall give prompt written notice
thereof to the Master Servicer.

 

(c)       The
Master Servicer may waive in writing 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 Primary Servicer Termination Event
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.

 

(d)       The
Primary Servicer shall not be or become Risk Retention Affiliated with or a Risk Retention Affiliate of any Third Party
Purchaser. If the Primary Servicer is or becomes Risk Retention Affiliated with or
a Risk Retention Affiliate of any Third Party Purchaser, the Primary Servicer shall promptly
notify the Master Servicer and the Primary Servicer shall be terminated as Primary Servicer under this Agreement pursuant to Section
7.02(a)(ii) below.

 

Section 7.02.      Termination
of Agreement.

 

(a)       This
Agreement shall be terminated with respect to any Primary Servicer:

 

     22

     

    

 

(i)       pursuant
to Section 3.20 of the PSA and Section 7.01 hereof, if the Master Servicer elects to terminate the Primary Servicer following a
Primary Servicer Termination Event;

 

(ii)      promptly
following the Primary Servicer being or becoming Risk Retention Affiliated with or a Risk Retention Affiliate of any Third
Party Purchaser;

 

(iii)     at
the Depositor’s request (to the extent the Depositor has a right to request termination under the PSA) pursuant to Section 7.01(a)(x)
or (xi) hereof or PSA Section 3.20(a)(ix);

 

(iv)     upon
resignation by the Primary Servicer as provided in Section 6.01 hereof;

 

(v)      with
respect to any Mortgage Loan, in the event such Mortgage Loan (A) becomes a Specially Serviced Loan or (B) is substituted, defeased,
purchased or repurchased pursuant to PSA Sections 2.03, 3.16, 3.18 or 9.01; or

 

(vi)     solely
with respect to the CrossPoint Whole Loan, on and after the related Servicing Shift Securitization Date.

 

(b)      If
the Master Servicer’s responsibilities and duties as Master Servicer under the PSA have been assumed by the Trustee, the
Trustee shall, without act or deed on the part of the Trustee, succeed to all of the rights and obligations of the Master Servicer
under this Agreement as provided in PSA Section 3.20, and the Primary Servicer shall be bound to the Trustee under all of the terms,
covenants and conditions of this Agreement with the same force and effect as if the Trustee was originally the Master Servicer
under this Agreement; and the Primary Servicer does hereby attorn to the Trustee, as the Master Servicer hereunder, said attornment
to be effective and self-operative without the execution of any further instruments on the part of any of the parties hereto immediately
upon the Trustee succeeding to the interest of the Master Servicer hereunder. The Primary Servicer agrees, however, upon written
demand by the Trustee to promptly execute and deliver to the Trustee an instrument in confirmation of the foregoing provisions,
satisfactory to the Trustee, in which the Primary Servicer shall acknowledge such attornment and shall confirm to the Trustee its
agreement to the terms and conditions of this Agreement. References to the Trustee under this Section 7.02, shall include any successor
Master Servicer under the PSA.

 

(c)      Termination
pursuant to this Section or as otherwise provided herein shall be without prejudice to any rights of the Master Servicer or the
Primary Servicer which may have accrued through the date of termination hereunder. In connection with any such termination, the
terminated Primary Servicer shall (i) remit all funds in the related Primary Servicer Accounts to the Master Servicer or such other
Person designated by the Master Servicer, net of accrued Primary Servicing Fees and Additional Primary Servicing Compensation through
the termination date which are due and payable to the Primary Servicer, (ii) deliver all related Primary Servicing Files to the
Master Servicer or to Persons designated by the Master Servicer, and (iii) fully cooperate with the Master Servicer to effectuate
an orderly transition of the servicing of the

 

     23

     

    

 

related Mortgage Loans. All rights of the terminated Primary Servicer relating to
the following after such termination shall continue in full force and effect until payment or other satisfaction in accordance
with this Agreement or termination of the Trust: (y) indemnification pursuant to Section 6.02; and (z) the payment of its Primary
Servicing Fees and Additional Primary Servicing Compensation which in any such case accrued under the terms of this Agreement on
or before the date of such termination shall continue in full force and effect until payment or other satisfaction in accordance
with this Agreement.

 

ARTICLE VIII.

 

MISCELLANEOUS PROVISIONS

 

Section 8.01.    Rating
Agency Communications.

 

(a)       Except
as required by the PSA or by law, the Primary Servicer shall not provide any information directly to, or communicate with, either
orally or in writing, any Rating Agency or any NRSRO regarding the Certificates or the Mortgage Loans relevant to such Rating Agency’s
or NRSRO’s surveillance of the Certificates or Mortgage Loans, including, but not limited to, providing responses to inquiries
from a Rating Agency or NRSRO regarding the Certificates or the Mortgage Loans relevant to such Rating Agency’s or NRSRO’s
surveillance of the Certificates and requests for Rating Agency Confirmation. All such information will be provided by, and all
such communications, responses and requests will be made by, the Master Servicer in accordance with the procedures required by
the PSA. To the extent that the Master Servicer is required to provide any information to, or communicate with, any Rating Agency
or NRSRO in accordance with its obligations under the PSA and such information or communication is regarding the Mortgage 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. None of the foregoing restrictions in this Agreement
shall prohibit or restrict oral or written communications, or providing information, between the Primary Servicer, on the one hand,
and any 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, that the Primary Servicer shall not provide any
information relating to the Certificates or the Mortgage Loans to any Rating Agency or NRSRO in connection with such review and
evaluation by such Rating Agency or NRSRO unless (x) Mortgagor, property and other deal specific identifiers are redacted; or (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.

 

(b)       The
Primary Servicer hereby expressly agrees to indemnify and hold harmless the Master Servicer and its respective officers, directors,
shareholders, members, managers, employees, agents, Affiliates and controlling persons, and the Trust Fund (each, an “Indemnified
Party”), from and against any and all losses, liabilities, damages, claims, judgments, costs, fees, penalties, fines, forfeitures
or other expenses (including reasonable legal fees and expenses), joint or several, to which any such Indemnified Party may become
subject, under the Securities

 

     24

     

    

 

Act, the Exchange Act or otherwise, pursuant to a third-party claim, insofar as such losses, liabilities,
damages, claims, judgments, costs, fees, penalties, fines, forfeitures or other expenses (including reasonable legal fees and expenses)
arise out of or are based upon the Primary Servicer’s breach of this Section 8.01 (including, without limitation, a determination
by a Rating Agency that it cannot reasonably rely on representations made by the Depositor or any Affiliate thereof pursuant to
Exchange Act Rule 17g-5(a)(3), but solely to the extent such determination is caused by a breach of this Section 8.01 by the Primary
Servicer), and will reimburse such Indemnified Party for any legal or other expenses reasonably incurred by such Indemnified Party
in connection with investigating or defending any such action or claim, as such expenses are incurred.

 

Section 8.02.      Amendment.

 

This Agreement
contains the entire agreement between the parties relating to the subject matter hereof, and may be amended from time to time by
the Master Servicer and the Primary Servicer only by written agreement executed by the party or parties against whom the enforcement
of such amendment is sought. Master Servicer shall not consent to any modification to the PSA in any manner which would increase
the obligations or limit the rights of the Primary Servicer under the PSA or under this Agreement without the prior consent of
the Primary Servicer (which consent shall not be unreasonably withheld).

 

Section 8.03.      Governing
Law; Submission to Jurisdiction; Waiver of Jury Trial

 

(a)       THIS
AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT, THE RELATIONSHIP OF THE PARTIES TO
THIS AGREEMENT, AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES TO THIS AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS AND DECISIONS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CHOICE OF LAW
RULES THEREOF. THE PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW SHALL APPLY
TO THIS AGREEMENT.

 

(b)       EACH
OF THE PARTIES HERETO IRREVOCABLY (I) SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE FEDERAL
COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT; (II) WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM IN ANY ACTION OR PROCEEDING
IN ANY SUCH COURT; (III) AGREES THAT A FINAL JUDGMENT IN ANY ACTION OR PROCEEDING IN ANY SUCH COURT SHALL BE CONCLUSIVE AND MAY
BE ENFORCED IN ANY OTHER JURISDICTION BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW; AND (IV) CONSENTS TO SERVICE
OF PROCESS UPON IT BY MAILING A COPY THEREOF BY CERTIFIED MAIL ADDRESSED TO IT AS PROVIDED FOR NOTICES HEREUNDER.

 

     25

     

    

 

(c)     THE
PARTIES HERETO HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM,
WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 8.04.   Notices.

 

All demands, notices
and communications hereunder shall be in writing and addressed in each case as follows:

 

(a)      if
to the Primary Servicer, as set forth on each signature page included herewith; and

 

(b)      if
to the Master Servicer:

 

by U.S. Mail at:

 

Midland Loan Services, a Division
of PNC Bank, National Association 

P.O. Box 25965

Shawnee Mission, KS 66225-5965 

Attention: Executive Vice
President - Division Head

Facsimile No.: (888) 706-3565 

Email: NoticeAdmin@midlandls.com and

MLSSubservicergroup@midlandls.com

 

or
by delivery to:

 

Midland Loan Services, a
Division of PNC Bank, National Association

10851 Mastin, Suite 300 

Overland Park, KS 66210

Attention: Executive Vice
President - Division Head

 

Any of the above-referenced Persons
may change its address for notices hereunder by giving notice of such change to the other Persons. All notices and demands shall
be deemed to have been given at the time of the delivery at the address of such Person for notices hereunder if personally delivered,
mailed by certified or registered U.S. mail, postage prepaid, return receipt requested, or sent by overnight courier or telecopy.
Notwithstanding the foregoing, Primary Servicer may deliver any of the items required to be delivered to the Master Servicer under
Sections 3.05-3.08 of this Agreement through electronic mail at NoticeAdmin@midlandls.com or such other email address provided
to Primary Servicer from the Master Servicer from time to time.

 

(c)     To
the extent that any demand, notice or communication hereunder is given to any Primary Servicer by a Responsible Officer of the
Master Servicer, such Responsible Officer shall be deemed to have the requisite power and authority to bind the Master Servicer
with respect to such communication, and any Primary Servicer may conclusively rely upon and shall be protected in acting or refraining
from acting upon any such communication. To the extent that

 

     26

     

    

 

any demand, notice or communication hereunder is given to the Master
Servicer by a Responsible Officer of any Primary Servicer, such Responsible Officer shall be deemed to have the requisite power
and authority to bind the Primary Servicer with respect to such communication, and the Master Servicer may conclusively rely upon
and shall be protected in acting or refraining from acting upon any such communication. Any notice required to be delivered under
this Agreement may be provided electronically (including by electronic mail).

 

Section 8.05.      Consistency
with PSA; Severability of Provisions.

 

This Agreement
shall be subject to the provisions of the PSA, which provisions shall be paramount and controlling and shall supersede the provisions
of this Agreement to the extent of any conflicts or inconsistencies. If one or more of the provisions of this Agreement shall be
for any reason whatever held invalid or unenforceable or shall be determined to be inconsistent with the PSA, such provisions shall
be deemed severable from the remaining covenants, agreements and provisions of this Agreement and such invalidity or unenforceability
shall in no way affect the validity or enforceability of such remaining provisions or the rights of any parties hereto. To the
extent permitted by law, the parties hereto hereby waive any provision of law that renders any provision of this Agreement invalid
or unenforceable in any respect.

 

Section 8.06.      Inspection
and Audit Rights.

 

The Primary Servicer
agrees that, on reasonable prior notice, it will permit any representative of the Master Servicer, during the Primary Servicer’s
normal business hours, reasonable access at its principal servicing offices to examine all books of account, records, reports and
other documents of the Primary Servicer relating to the Mortgage Loans, to make copies and extracts therefrom, to cause such books
to be audited by accountants selected by the Master Servicer, and to discuss matters relating to the Mortgage Loans with the Primary
Servicer’s officers and employees.

 

Section 8.07.      Protection
of Confidential Information.

 

The Primary Servicer
shall keep confidential and shall not divulge to any party, without the Master Servicer’s prior written consent, any information
pertaining to the Mortgage Loans, the Mortgaged Properties or the Mortgagors except to the extent that the Primary Servicer provides
prior written notice to the Master Servicer and (a) it is appropriate for the Primary Servicer to do so (i) in working with legal
counsel, auditors, other advisors, taxing authorities or other governmental agencies, (ii) in accordance with Accepted Primary
Servicing Practices or (iii) when required by any law, regulation, ordinance, court order or subpoena or (b) the Primary Servicer
is disseminating general statistical information relating to the mortgage loans being serviced by the Primary Servicer (including
the Mortgage Loans) so long as the Primary Servicer does not identify the owner of the Mortgage Loans or the Mortgagors.

 

Section 8.08.      Binding
Effect; No Partnership; Counterparts.

 

Subject to Section
6.01 hereof, with respect to the Primary Servicer, the provisions of this Agreement shall be binding upon and inure to the benefit
of the respective successors and assigns of the parties hereto. Nothing herein contained shall be deemed or construed to create
a partnership or joint venture between the parties hereto, and the services of the Primary Servicer

 

     27

     

    

 

shall be rendered as an independent
contractor for the Master Servicer. For the purpose of facilitating the execution of this Agreement as herein provided and for
other purposes, this Agreement may be executed simultaneously in any number of counterparts, each of which counterparts shall be
deemed to be an original, and such counterparts shall constitute but one and the same instrument.

 

Section 8.09.      Third
Party Beneficiaries.

 

The Trustee (for
the benefit of the Certificateholders and the related Companion Holder (if applicable)) and the Trustee (as holder of the Lower-Tier
Regular Interests) shall be a third party beneficiary under this Agreement. Except to the extent the Trustee or its designee assumes
the obligations of the Master Servicer contemplated in this Agreement and the PSA, none of the Trust, the Trustee, the Operating
Advisor, the Asset Representations Reviewer, the Certificate Administrator, Special Servicer, any successor special servicer or
any Certificateholder (or the related Companion Holder, if applicable) shall have any duties under this Agreement or any liabilities
arising from this Agreement.

 

Section 8.10.      Article
and Section Headings.

 

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

 

[SIGNATURE PAGES TO FOLLOW]

 

     28

     

    

 

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

 

	 	MIDLAND LOAN SERVICES, A DIVISION
OF PNC BANK, NATIONAL ASSOCIATION
	 	 
	 	By:	/s/ David A. Eckels	 
	 	 	 
	 	Name: David A. Eckels
	 	 	 
	 	Title: Senior Vice President
	 	 	 
	 	 	(“Master
Servicer”)

 

[SIGNATURE AND NOTICE ADDRESS PAGES
AND MORTGAGE LOAN 

SCHEDULES FOR THE PRIMARY SERVICER TO
FOLLOW]

 

Berkeley-Midland
Primary Servicing Agreement – UBS 2018-C8 – Midland Signature Page

 

     

     

    

 

	 	BERKELEY
POINT CAPITAL LLC
	 	 
	 	By:	/s/ Nancy Guanci
	 	 	 
	 	Name: Nancy Guanci
	 	 	 
	 	Title:   Vice President
	 	 	 
	 	By:	/s/ Leonarda Firmin
	 	 	 
	 	Name: Leonarda Firmin
	 	 	 
	 	Title:   Vice President
	 	 	 
	 	 	(“Primary
Servicer”)

 

	 	Notices:
	 	 
	 	Berkeley Point Capital LLC

One Beacon Street 14th
Floor

Boston, MA 02108

Attention: Director and
Head of Servicing

Fax Number: 617-722-5050

Email: Servicing.Requests@berkpoint.com 

	 	 
	 	With a copy to:
	 	 
	 	Berkeley Point Capital LLC 

7700 Wisconsin Avenue, Suite 1100

Bethesda, MD 20814      

Attention: Raqual Crea – Legal Department

Fax Number: 240-752-8121

 

Berkeley-Midland
Primary Servicing Agreement – UBS 2018-C8 – Berkeley Signature Page

 

     

     

    

 

SCHEDULE I

 

Mortgage Loan Schedule

 

	Property Name	Principal Balance	Primary Servicing Fee Rate

(basis points)
	4851 South Alameda Street	$ 17,750,000.00	5.00
	Shoppes Marketplace at Saxony	$ 7,500,000.00	7.00
	CrossPoint Mortgage Loan (Notes  A-2, A-3 and A-9)	$ 50,000,000.00	0.2500
	
        CrossPoint Pari

        

        Passu Companion Loan (Notes A-1, A-4, A-5, A-6,
A-7, A-8 and A-10) 
	$ 100,000,000.00	0.2500

 

Berkeley-Midland Primary Servicing
Agreement – UBS 2018-C8 – Schedule

 

 

     

     

    

 

EXHIBIT “A”

 

(Day One Report)

 

(see attached)

 

    A-1 

     

    

 

 

	Subservicer Name: _________________________________	 	 	 	 	 	 	 	 	 
	Deal Name: ______________________________________	 	 	 	 	 	 	 	 	 
	Reporting Period: _________________________________	 	DAY ONE REPORT	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Midland
    Loan #	Sub
    Loan #	Beg.
    Scheduled Prin Bal	Actual
    Paid To Date	Schdeuled
    Principal Balance	Prepayment
    Penalty	Prepayment
    Date	Scheduled
    Interest Payment	Scheduled
    Principal Payment	Scheduled
    P&I	Servicing
    Fee Rate	Servicing
    Fee	Net
    Remittance
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTALS:	 	 	 	 	 	 	 	 	 	 	 	 

 

    A-2

    	 

    

 

EXHIBIT “B”

 

(Inspection Reports)

 

(see attached)

 

    B-1

     

    

 

	 	 	 	 	 
	  	Mortgage
                                         Bankers Association
	Version:
        1.22
	  	Property
                                         Inspection Workbook Tools
	  	  
	  	  	  	  
	 
    	 General
    Purpose Tools 	 
    	 
    	 
    
	 
    	  	  	 
    
	 	 	 	 
	 
    	Select
                                         Check Spelling to run Excel’s spell checker 

                                         on all property inspection worksheets.
		 
    
	 
    	  	  	 
    
	 
    	  	  	 
    
	 	Select
                                         Print to display the MBA Property Inspection

                                         worksheet selection form where you can select the

        worksheet(s)
        to print.
		 
	 
    	 	 
    	 
    

  

	 
    	 Company
    Logo 	 
    	 
    	 
    
	 
    	  	  	 
    

	 
    	  	  	 
    
	  	  	  	  
	  	  	  	  
	  	  	  	  
	 See
                                         MBA Reference Guide for Property Inspection Report for instructions to insert logo

 

    B-2

     

    

 

MBA
INSPECTION FORM KEY 

	 	 
	Mortgage
    Bankers Association
	Standard
    Property Inspection Form Definitions
	For
    additional information, please refer to the MBA Inspections White Paper
	Ratings
    Definitions
	1	New
    or like new condition
All major building components are new or like new
All vacant units/space are rent ready &
    reflect the highest current market standards
No deferred maintenance items (only routine maintenance)
No life safety
    or code violations exist
Positive impact to marketability
Deferred Maintenance and Life Safety – No actions
    are required
	2	Above
    average condition for the property’s age and market, minimal wear and tear
All major building components in functional
    condition
All vacant units/space are rent ready or in the process of being made rent ready
No deferred maintenance items
    (only routine maintenance)
No life safety or code violations exist
No impact to marketability
Deferred Maintenance
    and Life Safety – No actions are required
	3	Normal
                                         condition for the property’s age and market, general wear and tear.

                                         All major building components in functional condition

                                         Most vacant units or space are rent ready or in the process of being made rent ready

                                         Minimal deferred maintenance and routine maintenance items with costs that can be funded
                                         by normal operations

                                         No/minor life safety or code violations exist

                                         No impact to marketability

                                         Deferred Maintenance and Life Safety - Appropriate actions are planned or in progress

	4	Deteriorating
                                         condition for the property’s age and market

                                         A building component is not in fully functional condition

                                         Few rent-ready units or space

                                         Limited major deferred maintenance &/or numerous minor deferred maintenance items

                                         Some life safety or code violations exist

                                         Negative impact to marketability

                                         Deferred Maintenance and Life Safety - Actions are not addressed as quickly
                                         as required and/or further action is necessary, additional monitoring may be appropriate
                                         

	5	Inferior
    conditions
Multiple building components non-functional
Vacant units or space are in poor to down condition
Severe
    deferred maintenance items
Multiple life safety or code violations exist
Negative impact to marketability
Deferred
    Maintenance and Life Safety – No Action taken and/or further action is necessary – additional monitoring is appropriate
	 Not
 Applicable	No
    components exist (therefore, no rating is possible)
	 Not
    
 Accessible	No
    component was visible due to inability to view the condition based on access, life safety, weather conditions or other blockages.
Deferred
    maintenance items can not be determined based on lack of access
Further action or review may be required

  

	Copyright
    2008 Mortgage Bankers Association, Washington, DC	

 

    B-3

     

    

 

General
Info     

	  	  	  	  	  	  	  	  	  
	Company
    Name/Logo	  	Standard
    Inspection Form
	  	  	  	  	  	  	  	  	  
	 Inspection Date	 
    	 
    	Time   	 
    	  	Property City	 
    	 
    
	 Loan Number	 
    	  	  	  	  	Property State/Country	 
    	/                    
	 Property Name	 
    	  	  	  	  	Overall Property Rating	 
    	 
    
	  	  	  	  	  	  	  	  	  
	 Servicer,
    Loan and Contact Information
	 Servicer Name	 
    	  	  	  	  	Contact Company	 
    	 
    
	 Owner of Loan	 
    	  	  	  	  	Contact Name	 
    	                /
	 Investor Number	 
    	     	  	  	  	Contact Phone	 
    	 
    
	 Investor Loan #	 
    	  	  	  	  	Contact
    Email	 
    	 
    
	 Property ID	 
    	  	  	  	  	Addt’l
    ID #1 (editable)	 
    	 
    
	 Original Loan Amount	  	 
    	  	  	  	Addt’l
    ID #2 (editable)	 
    	 
    
	 Loan Balance (UPB)	  	 
    	  	  	  	O&M Plan(1)	  	 
    
	 Loan Balance as
    of Date	  	 
    	  	  	  	Report Reviewed By	  	                    /
	 (1)
    Includes ALL Plans (such as, but not limited to, Operations &
    Maintenance, Moisture Management and Environmental Remediation)
	 Property
    and Inspector Information
	 Property Name	 
    	  	  	  	  	Primary Property Type	  	 
    
	 Property Address	 
    	  	  	  	  	Secondary Property Type	  	 
    
	 Property City	 
    	  	  	  	  	Inspection Company	  	 
    
	 Property State	 
    	  	  	  	  	Inspection Co. Phone	  	 
    
	 Property Zip	 
    	  	  	  	  	Inspector’s Name	  	                    /
	  	  	  	  	  	  	Inspector’s ID	  	 
    

 

	 Lender’s
    or Servicer’s General Comments or Instructions to Inspector for Subject Property:
	 
    
	 
    
	 
    
	 
    
	 
	 
    

 

	 Property
    Inspector’s General Comments or Suggestions to Lender or Servicer on the Subject Property:
	 
    
	 
    
	 
    
	 
	 
    
	 
    

	  	  	  	  	  	  	  
	 Overview
    of Property Information
	 Number of Buildings	 
    	  	Year Built	 
    
	 Number of Floors	 
    	  	  	  	Total Square Feet (Gross)	 
    
	 Number of Elevators	 
    	  	  	  	Total Sq. Feet (Net /
    Rentable)	 
    
	 Number of Parking
    Spaces	 
    	  	  	  	Occupied Space	 
    
	 Number of Units
    / Rooms / Beds	 
    	  	  	  	Vacant Space	 
    
	 Rent Roll obtained
    at Inspection	 
    	  	  	  	Total Percent Occupied	 
    
	 Total
    Number of Down Units / Rooms / Beds	  	 
    	  	Annual Occupancy	 
    
	 Unit of Measurement
    Used	  	  	 
    	  	Annual Turn Over	 
    
	  	  	  	  	  	  
	 Property
    Offers Rental Concessions	 
    	 
    	 
    	If
    yes, please describe concessions:
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	 
    	  	  	  	  	  	 
    
	

    Copywrite 2008 Mortgage Bankers Association, Washington, DC	  	  	    

 

 

    B-4

     

    

 

General
Info     

	  	  	  	  	  	  	  	  	  	  	  	  
	 Inspection Date	 
    	 
    	        Time   	 
    	  	Property City	 
    	  	 
    
	 Loan Number	 
    	  	  	  	  	  	  	Property State/Country	 
    	  	/
	 Property Name	 
    	  	  	  	  	  	  	Overall Property Rating	 
    	  	 
    
	  	  	  	  	  	  	  	  	  	  	  	  
	 Franchise Name	 
    	  	Franchise
    change since last inspection	 
    
	  	  	  	  	  	  	  	  	  
	 Number
    of Occupied Units Inspected	  	 
    	  	  	Number of
    Vacant Units Inspected	  	 
    
	  	  	  	  	  	  	  	  	  
	 Is there
    any dark space?	 
    	  	  Describe:	 	 
	 Is there
    any down space?	 
    	  	  Describe:	 	 

	  	  	  	  
	 Capital
    Expenditures	  	  	  
	 Describe
    in detail Repairs, Replacements or Capital Improvements	Identified
    Cost	Status
	 
    	 
    	 
    
	 
    	 
    	 
    
	 
    	 
    	 
    
	 
    	 
    	 
    
	 
    	 
    	 
    
	 
    	 
    	 
    
	 
    	 
    	 
    
	 
    	 
    	 
    

	  	  	  	  	  	  	  	  
	 Neighborhood
    and Site Comparison Data
	 Is the
    area declining or distressed	  	 
    	  	Percent
    Use - %
	 Is there
    any new construction in the area	  	  	Single Family	 
    
	 Top 2 Major	1. 	Name or Type	 
    	 
    	  	Multifamily	 
    
	 Competitors:	  	  Distance	 
    	  	  	Commercial	 
    
	  	2.  	Name or Type	 
    	  	  	Industrial	 
    
	  	  	  Distance	 
    	  	  	Undeveloped	100%

 

	 Describe
    area, surrounding land use & overall trends (include location in relation to subject property - N, S, E, W):
	 
    
	 
    
	 
    
	 
    
	 
    
	 
    
	 
    
	 
    
	 
    
	 
    

	  	  	  	  	  	  	  	  
	 Management
    Company Information	  	  	  
	 Management Company
    Name	 
    	  	Phone Number	 
    
	 On Site Contact	                              /	  	Mgmt Interview	 
    
	 Role or Title of
    Contact	 
    	  	Length of
    time at property	 
    
	 Management Affiliation	 
    	  	Change since
    last inspection	  	 
    
	  	  	  	  	  	  	  
	 Other
    Information
	 Additional
    Collateral Description Information	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	 
    	  	  	  	  	  	 
    
	
Copywrite
    2008 Mortgage Bankers Association, Washington, DC	  	  	    

 

    B-5

     

    

 

	  	 	 	  	  	  	  	  	  	  	  
	  	  	  	Physical
    Condition & DM     
	 	 	 	 
	Standard
                                         Inspection Form

         
	  	  
	Inspection Date	 
    	Time    	 
    	  	Property City	 
    
	Loan Number	 
    	  	Property State/Country	 
    	/	 
    
	Property Name	 
    	  	Overall Property
    Rating	 
    

 

	Physical
    Condition Assessment and Deferred Maintenance
	 

 

	Property
    Assessment

 

	Physical

        Condition
	Overall

        Rating
	Trend	Representative
                                         Components

        (Not all-inclusive)
	Inspector
    Comments
	 
    	 
    	  	  	  
	Curb
    Appeal	 
    	  	Comparison
    to Neighborhood; First Impression / Appearance	 
    
	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	  	  	  
	Site	 
    	  	Subject
    Property Appearance; Signage; Ingress/Egress; Landscaping; Site Lighting; Parking Lot; Striping; Garage/Carports; Irrigation
    System; Drainage; Retaining Walls; Walkways; Fencing; Refuse Containment & Cleanliness, Hazardous Material Storage	 
    
	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	  	  	  
	Building
                                         /

        Mechanical

        systems
	 
    	  	HVAC;
    Electrical; Boilers; Water Heaters; Fire Protection; Sprinklers; Plumbing; Sewer; Solar Systems; Elevators/ Escalators; Chiller
    Plant; Cooling Towers; Building Oxygen Systems; Intercom System; PA System; Security Systems	 
    
	 
    	 
    	 
    	 
    	 
    
	Building

        Exteriors
	 
    	 
    	Siding;
    Trim; Paint; Windows; Exterior Entry Ways; Stairs; Railings; Balconies; Patios; Gutters; Downspouts; Foundations; Doors; Façade;
    Structure (Beam/Joist)	 
    
	 
    	 
    	  	  	  
	Building

        Roofs
	 
    	  	Roof
    Condition; Roof Access; Top Floor Ceilings; Shingles/ Membrane; Skylights; Flashing; Parapet walls; Mansard roofs	 
    
	 
    	 
    	 
    	 
    	 
    
	Occupied

        Units
        / Space
	 
    	 
    	HVAC;
    Ceiling; Floors; Walls; Painting; Wall Cover; Floor Cover; Tiles; Windows; Countertop; Cabinets; Appliances; Lighting; Electrical;
    Bathroom Accessories; Plumbing Fixtures; Storage; Basements/Attics	 
    
	 

        Vacant
        Units /

        Space
        /

        Hotel
        Rooms

         
	 
    	 
    	HVAC;
    Ceiling; Floors; Walls; Painting; Wall Cover; Floor Cover; Tiles; Windows; Countertop; Cabinets; Appliances; Lighting; Electrical;
    Bathroom Accessories; Plumbing Fixtures; Storage; Basements/Attics	 
    
	 

        Down
        Units /

        Space
        /

        Hotel
        Rooms

         
	 
    	 
    	HVAC;
    Ceiling; Floors; Walls; Painting; Wall Cover; Floor Cover; Tiles; Windows; Countertop; Cabinets; Appliances; Lighting; Electrical;
    Bathroom Accessories; Plumbing Fixtures; Storage; Basements/Attics	 
    
	 
    	 
    	  	  	  
	Interior

        Common

        Areas
	 
    	  	Mailboxes;
    Reception Area; Lobby; Food Courts; Dining Areas; Kitchen; Halls; Stairways; Meeting Rooms; Public Restrooms; Storage; Basement;
    Healthcare Assistance Rooms; Pharmacy / Medication Storage; Nurses Station	 
    
	 
    	 
    	 
    	 
    	 
    

 

	Copyright
    2008 Mortgage Bankers Association, Washington, DC	     

 

    B-6

     

    

 

	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	  	  	 	 	 	Physical
    Condition & DM     
	 	 	 	 
	Inspection Date	 
    	Time    	 
    	  	Property City	 
    
	Loan Number	 
    	  	Property State/Country	 
    	/	 
    
	Property Name	 
    	  	Overall Property
    Rating	 
    

 

	Amenities
	 
    	 
    	Pool; Clubhouse;
        Gym; Laundry Area / Rooms; Playground; Wireless Access; Restaurant/Bar; Business Center; Sport Courts; Spa; Store; Media
        Center
	 
    
	Management

        Competence
	 
    	 
    	Professionalism;
    Ability to respond to questions; Knowledge of property; Knowledge of neighborhood/ market; Preparedness for inspection; Had
    all requested paperwork; Tenants notified	 
    

 

	Exterior
    - Additional description of the property conditions:
	 

         

         

	  
	Interior
    - Additional description of the property conditions:
	 

         

         

 

	Deferred
    Maintenance Items

 

	Identify
    Item and Describe Condition (including location)	Rating	Photo

        #
	Life

        Safety
	Est.
    Cost
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    
	 

         
	 
    	 
    	 
    	 
    

 

	Copyright
    2008 Mortgage Bankers Association, Washington, DC	     

 

    B-7

     

    

 

	  	  	  	  	  	  	  	  	 	 	  
	Standard Inspection Form	  	  
	  	  	  	  	  	  	  	  	  	  
	Inspection Date	 
    	Time   	 
    	  	Property City	 
    	 
    	 
    
	Loan Number	 
    	 
    	 
    	  	Property State/Country	 
    	 
    	  /	 
    
	Property Name	 
    	 
    	 
    	  	Overall Property
    Rating	  	 
    
	  	  	  	  	  	  	  	  	  
	Photos

  

	 	 

 

    B-8

     

    

  

Mgmt Interview      

	  	  	  	  	  	  	  	  	 	 	  
	Company
    Name/Logo	  	  	Standard
    Inspection Form
	  	  	  	  	  	  	  	  	  	  
	Inspection Date	 
    	Time   	 
    	  	Property City	 
    	 
    	 
    
	Loan Number	 
    	 
    	 
    	  	Property State/Country	 
    	 
    	  /	 
    
	Property Name	 
    	 
    	 
    	  	Overall Property
    Rating	  	 
    
	  	  	  	  	  	  	  	  	  
	Management
    Information & Interview

 

	  	 
    	  	  	 
    	 
    	 
    
	Management Company Name	 
    	  	Phone Number	 
    	 
    
	Name of Information Source	                       /	  	Email Address	 
    	 
    
	Role or Title of Information
    Source	 
    	  	Length of
    time at property	 
    
	Management Affiliation	 
    	  	Mgmt change
    from last inspection	 
    

	  	  	  
	In your opinion, how does
    the property perform compared to similar properties in the area?	 
    	 
    
	In your opinion, what
    is the average percentage of vacancy in similar properties in the area?	  	 
    
	Based on market survey,
    what is the current average rents paid in the area ($ per square foot/units/beds)?	  	 
    
	In
    your opinion, explain the reason for any variance on vacancy & rents between the market and the subject property:	  	  
	 
    	  	 
    
	  	  	  
	In the past 12 months,
    have there been any fires, significant water intrusion or other property damage?	  	 
    
	If
    yes, explain the location on the property, costs associated, any insurance claims submitted, resolution & leaseability:	  	  
	 
    	  	 
    
	  	  	  
	In the past 12 months,
    to the best of your knowledge, have any code violations been received?	  	 
    
	If
    yes, please describe the violation, the costs associated and any resolution or outstanding issues:	  	  
	 
    	  	 
    
	  	  	  
	Is the property undergoing
    any significant rehab/construction?	  	 
    
	If
    yes, explain the location, size and estimated costs:	  	  
	 
    	  	 
    
	  	  	  
	Is the property in compliance
    with ALL O&M Plan(s)?	 
    	 
    
	(Plans
    such as, but not limited to, Operations and Maintenance, Moisture Management and Environmental Remediation.)	  	  
	If
    no, please explain which plan(s), the requirements, noncompliance items and estimated costs:	  	  
	 
    	  	 
    
	  	  	  
	Any change or violations
    of a Franchise Agreement or License(s) at the property?	 
    	 
    
	If
    yes, please explain any change or violation, costs & any resolution or outstanding issues:	  	  
	 
    	  	 
    
	  	  	  
	To the best of your knowledge,
    are there any lawsuits pending that may negatively impact the property?	  	 
    
	If
    yes, please explain:	  	  
	 
    	  	 
    
	  	  	  
	Other
    Information or Comments:	  	  
	 
    	  	  
	 
    	  	 
    
	  	  	  
	Copyright
    2008 Mortgage Bankers Association, Washington, DC	  	   

 

    B-9

     

    

 

Multifamily 

 

Standard
Inspection Form 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Inspection
    Date	 
    	 
    	Time	 
    	 
    	 
    	Property
    City	 
    
	Loan
    Number	 
    	 
    	 
    	Property
    State/Country	 
    	 /	 
    
	Property
    Name	 
    	 
    	 
    	Overall
    Property Rating	 
    

 

	Multifamily,
    Mobile Homes, Cooperative Housing, Student Housing

	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	Property
    Information
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	Heat at the
    Property	 
    	  	  	Gas at the
    Property	 
    
	Water at the
    Property	 
    	  	  	Trash at the
    Property	 
    
	Electric at
    the Property	 
    	  	  	Cable at the
    Property	 
    
	Change to
    Major Employer	 
    	  	  	If yes, describe:	 
    
	Change to
    Commercial/Retail	 
    	  	  	If yes, describe:	 
    
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  Unit Breakdown	 	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	#
    of Bedrms	#
    of Bath	#
    of Units	Avg
    Ft2
    / Unit	Monthly
    Rent	#
    Occupied	#
    Vacant	#
    Down	#
    Inspected
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	Totals	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	Tenant Profile	 	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	 
    	 
    
	   Corporate	 
    	  	Military	 
    	  	Seasonal	 
    	  	Seniors	 
    	  	Students	 
    	Other	100%
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	Property
    Condition
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	Detailed
    Report of Units Inspected	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	Unit
    #	#
    of Bedrms	#
    of Bath	Square
    Feet	Asking
    Rent	Current
    Use	 Overall
    Condition	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    

 

	Copyright
    2008 Mortgage Bankers Association, Washington, DC	    

 

 

    B-10

     

    

 

Healthcare     

 

Standard
Inspection Form

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Inspection
    Date	 
    	 
    	Time	 
    	 
    	 
    	Property
    City	 
    
	Loan
    Number	 
    	 
    	 
    	Property State/Country
	 
    	   /	 
    
	Property
    Name	 
    	 
    	 
    	Overall Property
        Rating
	 
    

 

	Healthcare,
    Nursing Home, Hospitals

	 
	   Property Information
	 

	 	 	 	 	 	 	 	 	 	 
	 	General Information	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	Total Number of Beds	 	 	 	Number of Beds Occupied	 
	 	 	 	 	 	% Occupied	 
	 	 	 	 	 	 	 
	 	New Patients Currently being Accepted  	 	 	 	Admission Waiting Period	 
	 	 	 	 	 	Proximity to a Hospital	 

	 	 	 	 	 	 	 	 	 	 
	 	Level of Care Breakdown	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	Unit Type	Total #

Beds	Total # Beds Occupied	
        Total # 

        Units
	Total # Units

Occupied	Avg. S.F. / 

Unit	 Monthly 

Rent	# Beds

Vacant
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	  Totals	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Administrator’s Name	 	/	 	 	Length of Time at Property	 	 
	 	Director of Nursing’s Name	 	/	 	 	Length of Time at Property	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Direct Care Staff Numbers	 	Day	Evening	Night	Comments
	 	 	Nurses -	RNs	 	 	 	 	 
	 	 	Nurses -	LPNs	 	 	 	 	 
	 	 	Other Direct Care	 	 	 	 
	 	Non Direct Care Personnel	 	 	 	 
	 	Total Staff	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Regulatory / Licensing Agency Information	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Name of the Agency	 	 	 	Contact Person	                         /	 	 
	 	Expiration Date of Operating License	 	 	All Licenses Current	 	 	 
	 	Date of last Medicare inspection	 	 	Property Medicare Certified	 
	 	Date of last Medicaid inspection	 	 	Property Medicaid Certified	 
	 	Please describe any violations, costs associated, resolution or outstanding issues: 
	 	 

 

	      Copyright
    2008 Mortgage Bankers Association, Washington, DC	

 

    B-11

     

    

 

Healthcare     

 

Standard
Inspection Form

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Inspection
    Date	 
    	 
    	Time	 
    	 
    	 
    	Property
    City	 
    
	Loan
    Number	 
    	 
    	 
    	Property State/Country
	 
    	   /	 
    
	Property
    Name	 
    	 
    	 
    	Overall Property
        Rating
	 
    

	 	 	 	 	 	 	 	 	 
	Property Condition	 	 	 	 
	Handrails in the halls	 	 	Exits clearly marked	 
	Grab bars present in rest rooms	 	 	Intercom System	 
	Staff interacts well with residents	 	 	Generator Function	 
	Facility looks and smells clean	 	 	 	 
	Additional description of any safety or deficiency issues observed: 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Units or Beds Inspected	 	 	 	 	 
	 	 	 	 	 	 	 
	Down Units (List the unit #)	 	 	 	 
	 	 	 	 	 	 	 
	Detailed Report of Units Inspected	 	 	 	 

 

	Unit #	# of Bedrms	# of Bath	Square Feet	Asking Rent	Current Use	Overall Condition
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  

	      Copyright
    2008 Mortgage Bankers Association, Washington, DC	

 

    B-12

     

    

  

Standard
Inspection Form

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Inspection
    Date	 
    	 
    	Time	 
    	 
    	 
    	Property
    City	 
    
	Loan
    Number	 
    	 
    	 
    	Property State/Country
	 
    	   /	 
    
	Property
    Name	 
    	 
    	 
    	Overall Property
        Rating
	 
    

	  	 	 	 	 	 	 	 	 	  	 	 	  	 	  
	Rent
    Roll
	  	  	  	  	  	  	  	  	  	  	  
	 	 	 	 	 	 	 	 	 	 	 
	Rent Roll Attached	 
    	  	  	(Select
    One)	  	  
	Rent Roll Summary Attached	 
    	  	  	  	  	  	  
	Single Tenant Property	 
    	  	  	Lease expires:	  	  
	Hospitality Property	 
    	  	  	YTD ADR:	  	  	RevPAR: 	 	  	ADO: 	  
	  	  	  	  	  	  	  	  	  	  	  
	Insert
    Rent Rolls in the space below using Excel commands or via Copy and Paste

  

	Copyright
    2008 Mortgage Bankers Association, Washington, DC	     

 

    B-13

     

    

  

Standard
Inspection Form

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Inspection
    Date   	 
    	Time	 
    	 
    	 
Property
    City    		 
    
	Loan
    Number   	 
    	 
    	Property State/Country	  	 
	 
    	   	 
    
	Property
    Name   	 
    	 
    	Overall Property
        Rating	
	 
    

 

	Maps
	  

 

	  	Regional
    Map
	  	  
	  	 

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

	  	  
	  	Neighborhood
    Map
	  	  
	  	 

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

  

	Copyright
    2008 Mortgage Bankers Association, Washington, DC	    

 

    B-14

     

    
 

Comprehensive
Assessment Addendum     

	  	 	  
	Company
    Name/Logo	 	Standard
    Inspection Form

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Inspection
    Date	 
    	 
    	Time	 
    	 
    	 
    	Property
    City	 
    
	Loan
    Number	 
    	 
    	 
    	Property State/Country
	 
    	   /	 
    
	Property
    Name	 
    	 
    	 
    	Overall Property
        Rating
	 
    

 

	 
    	 
    	 
    	 
    	 
    
	Limitations
    of Field Assessment
	  
	Did
    you experience any of the following limitations to performing this field assessment:  (Choose Yes/No)	  
	  	Management
    unavailable for interview or management experience on the property is less than six months	 
    
	  	Occupied units
    were unavailable for assessment, or the total number of units available (occupied or unoccupied) was insufficient	 
    
	  	Significant
    portions of the common areas, amenities or basements, etc. were unavailable for assessment	 
    
	  	Snow was covering
    most exterior areas (parking lots, roofs, landscape areas)	 
    
	  	Other	  	  	  
	  	None	 
    	  	  
	  	Comment:	 
    	  	 
    

	  	  	  
	Comprehensive
    Property Assessment Ratings
	  	  	  
	1.  	Life
    Safety (Choose the one that applies from the drop down menu):
	  	 
    
	  	Comment:	 
    
	  	  	  
	2.	Deferred
    Maintenance (Choose the one that applies from the drop down menu):
	  	 
    
	  	Comment:	 
    
	  	  	  
	3.	Routine
    Maintenance (Choose the one that applies from the drop down menu):
	  	 
    
	  	Comment:	 
    
	  	  	  
	4.	Capital
    Needs (Choose the one that applies from the drop down menu):
	  	 
    
	  	Comment:	 
    
	  	  	  
	5.	Level/Volume
    of issues noted and appropriate follow-up recommendations (Choose the one that applies from the drop down menu):
	  	 
    
	  	Comment:	 
    

	  	  	  	  	  	  
	Overall
    Rating and Additional Comments
	  
	Overall
    Rating Scale:	 

         
	  
	  	  	1
    = No substantial concerns observed. No further action required.
	 	 	 
	  	  	2 = Some
    minor issues noted. Limited follow-up required.
	 	 	 
	  	  	3 = Substantial
    and/or critical issues noted. Documented follow-up required.
	 	 	 
	  	  	4 = Overall
    condition showing signs of deterioration. Documented follow-up with possible action plan required.
	 	 	 
	  	  	5 = Severe
    deferred maintenance observed. Follow-up and substantial action plan required.
	  	  	  	  	  
	  	Comment: 	 

         

	  	  	  	  	  
	Inspector
    Information
	  	  	  	  	  
	Seller/Servicer
    Certification	Date:	 
    	 
    
	  	  	  	  	  
	First
    Name:	 
    	 
    	 
    	 
    
	Last
    name:	 
    	 
    	 
    	 
    
	Title:	 
    	 
    	 
    	 
    
	Phone
    Number:	 
    	 
    	 
    	 

  

	Copywrite
    2008 Mortgage Bankers Association, Washington, DC	    

 

    B-15

     

    

 

Comprehensive
Assessment Addendum     

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Inspection
    Date	 
    	 
    	Time	 
    	 
    	 
    	Property
    City	 
    
	Loan
    Number	 
    	 
    	 
    	Property State/Country
	 
    	   /	 
    
	Property
    Name	 
    	 
    	 
    	Overall Property
        Rating
	 
    

 

	Email
    Address:	 
    	 
    	 
    	  

  

	Copywrite
    2008 Mortgage Bankers Association, Washington, DC	

 

    B-16

     

    

 

EXHIBIT
“C”

 

(Quarterly
Reports)

 

(see
attached)

 

    C-1

     

    

 

	 	 	 	 	 	 	 	 	 
	Transaction/Securitization
    Name  	 	 	 	 	 	 	 
	Subservicer:	  	 
    	 
    	 
    	  	  	  	  
	Quarter
    Ending:	  	 
    	 
    	 
    	  	INSURANCE
    MONITORING REPORT

  

	 Servicer 
Loan
    #	MLS
 Loan
    # 	 Borrower 
Name	 Property 
Name	 Property 
Address	 Effective 
Date	 Expiration 
Date	 Insurance 
Co.	Type
    of
 Coverage 	Policy
 Number 	 Coverage 
Amount	 Deductible 	 Escrowed 
(Y/N)	 Loss Payee Endorsement 

        Reflects Trust
        (Y/N)
	Meets
Qualified
    Ins
 Ratings (Y/N) 	Frequency
    of
 Disbursement 
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    

 

Note:  Please
include one line per Insurance coverage.

  

The
undersigned hereby certifies that it holds in its custody a certificate or other appropriate proof of valid insurance on the individual
properties which are securing mortgage loans held by the above referenced “transaction/securitization” which
are subserviced by the undersigned on behalf of Midland Loan Services, Inc. The hazard coverage provided by such policies
complies with the requirements of the individual loan documents. The properties are correctly identified in the policies,
and all improvements thereon to be insured are included and properly described; that the name or names of the insured exactly
conform to the names or names in which title is held; that a standard, non contributory clause in favor of _______________________ is
or endorsed on the policies. The amount of coverage is not less than the amount required under the individual loan documents.

 

	Certified
    By:	 	 
	Date
    Printed:	 	 
	Title:	 	 

 

    C-2

     

    

 

	 	 	 	 	 	 	 	 	 
	Transaction/Securitization
    Name  	 	 	 	 	 	 	 
	Subservicer:	  	 
    	 
    	 
    	  	  	  	  
	Quarter
    Ending:	  	 
    	 
    	 
    	  	TAX
    MONITORING REPORT

  

	
 Servicer Loan

 #	MLS
 Loan # 	 Borrower 
Name	 Property
    Name 	 Property 
Address	 Property
    City 	 Property 
State	 Property
    Zip 
Code	 Parcel
    No. 	 Tax Authority 
Name	 Tax
    Type 	Next
    Tax
 Due Date 	 Escrowed 
(Y/N)
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    

 

Note:  Please
include one line per tax parcel.

  

The
undersigned hereby certifies that it has inspected actual tax receipts or has otherwise verified full payment of all real estate
taxes for the year __________________________ and prior years on properties covered by all mortgage loans subserviced by
it on behalf of Midland Loan Services, Inc., and held by __________________________ excepting only the loans hereinafter
listed; the undersigned further certifies that no unredeemed sales certificates or other tax liens are outstanding against any
of the aforesaid properties other than as stated below.

  

	Loan
    Number	Mortgagor	Explanation

  

	Certified
    By:	 	 
	Date
    Printed:	 	 
	Title:	 	 

 

    C-3

     

    

 

	 	 	 	 	 	 	 	 	 
	Transaction/Securitization
    Name  	 	 	 	 	 	 	 
	Subservicer:	  	 
    	 
    	 
    	  	  	  	  
	Quarter
    Ending:	  	 
    	 
    	 
    	  	UCC
    MONITORING REPORT

 

	Servicer
    Loan 

#	MLS
Loan #	Borrower
Name	State
    of Incorporation 

or State of Residence	Property
Name	Filing
    Type	Filing
Location	Original Filing 
Number	Original
Filing
    Date	Expiration
Date	
Trust
    is Named
Beneficiary (Y/N)
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    
	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    

 

	Note:  Please
    include one line per UCC filing.

 

The
undersigned hereby certifies that it has inspected actual UCC-1 filings or has otherwise verified filing of all UCC-1 documents
and further certifies that there has been no lapse in lien position on the collateral secured by said UCC-1 filings for all loans
subserviced on behalf of Midland Loan Services, Inc., and held by     ______________________________ .

  

	Certified
    By:	 	 
	Date
    Printed:	 	 
	Title:	 	 

  

	Please
    forward to Midland Loan Services copies of all filings and attachments.	  

	If
    copies cannot be supplied, Midland will need the following information:

 

	  	  	Exact
    Name and Address of current beneficiary (if not assigned to the Trust)
	  	  	Complete
    Address of the Borrower
	  	  	Copies
    of collateral description and legal description

 

    C-4

     

    

 

EXHIBIT
“D”

 

(Remittance
Reports)

 

(see
attached)

 

    D-1

     

    

  

	TRANSACTION
    NAME:	 
    	 
    	  	  	  	  	  
	SUBSERVICER:	 
    	 
    	  	  	  	  	  
	FOR
    DISTRIBUTION DATE:	  	  	  	  	  	  	  

 

	MASTER

        SERVICER #
	 SUBSERVICER 

        LOAN #
	BORROWER
NAME	BEGINNING

        BALANCE
	PAYMENT
AMOUNT	PRINCIPAL
    AMOUNT	INTEREST
AMOUNT	SERVICE

        FEE
	NET
INTEREST	NET

        REMITTANCE
	ENDING

        BALANCE
	PAYMENT
DATE
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	 
    	 
    	  	 
    	  	 
    	  	 
    	  	 
    	  	 
    
	TOTALS	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    	 
    

 

    D-2

     

    

 

EXHIBIT “E”

 

(Form of Mortgagee Clause for Insurance
Policies)

 

The mortgagee clause for insurance policies
should be as follows:

 

Midland Loan Services, a Division of PNC
Bank, National Association, as Master Servicer, on behalf of Wells Fargo Bank, National Association, as Trustee, for the benefit
of the Holders of UBS Commercial Mortgage Trust 2018-C8, Commercial Mortgage Pass-Through Certificates, Series 2018-C8

 

     E-1Exhibit

Exhibit 10.25
THE SEMPRA ENERGY EMPLOYEE
AND DIRECTOR SAVINGS PLAN
(As Amended and Restated Effective as of November 9, 2017)

	
					
	TABLE OF CONTENTS

	 
	 
	 
	 
	Page

	 
	 
	 
	 
	 

	ARTICLE I. TITLE AND DEFINITIONS
	 
	1

	1.1
	Title
	 
	 
	1

	1.2
	Definitions
	 
	 
	1

	 
	 
	 
	 
	 

	ARTICLE II. PARTICIPATION
	 
	9

	2.1
	Commencement of Participation
	 
	 
	9

	2.2
	Newly Appointed or Elected Directors
	 
	 
	9

	 
	 
	 
	 
	 

	ARTICLE III. CONTRIBUTIONS
	 
	10

	3.1
	Elections to Defer Compensation
	 
	 
	10

	3.2
	Distributions Elections
	 
	 
	15

	3.3
	Employer Matching Contributions
	 
	 
	19

	3.4
	FICA and Other Taxes
	 
	 
	20

	 
	 
	 
	 
	 

	ARTICLE IV. INVESTMENTS
	 
	21

	4.1
	Measurement Funds
	 
	 
	21

	4.2
	Investment Elections
	 
	 
	21

	4.3
	Compliance with Section 16 of the Exchange Act
	 
	23

	 
	 
	 
	 
	 

	ARTICLE V. ACCOUNTS
	 
	23

	5.1
	Accounts
	 
	 
	23

	5.2
	Subaccounts
	 
	 
	24

	 
	 
	 
	 
	 

	ARTIVLE VI. VESTING
	 
	25

	 
	 
	 
	 
	 

	ARTICLE VII. DISTRIBUTIONS
	 
	25

	7.1
	Distribution of Accounts
	 
	 
	25

	7.2
	Hardship Distribution
	 
	 
	28

	7.3
	Effect of a Change in Control
	 
	 
	29

	7.4
	Inability to Locate Participant
	 
	 
	30

	7.5
	Prohibition on Acceleration of Distributions
	 
	30

	7.6
	Distributions Pursuant to QDROs
	 
	 
	30

	 
	 
	 
	 
	 

	ARTICLE VIII. ADMINISTRATION
	 
	31

	8.1
	Committee
	 
	 
	31

	8.2
	Administrator
	 
	 
	31

	
						
	8.3
	

	Committee Action
	 
	 
	31

	8.4
	

	Powers and Duties of the Committee
	 
	 
	32

	8.5
	

	Construction and Interpretation
	 
	 
	32

	8.6
	

	Information
	 
	 
	32

	8.7
	

	Compensation, Expenses and Indemnity
	 
	33

	8.8
	

	Quarterly Statements
	 
	 
	33

	8.9
	

	Disputes
	 
	 
	33

	 
	 
	 
	 
	 

	ARTICLE IX. MISCELLANEOUS
	 
	34

	9.1
	

	Unsecured General Creditor
	 
	 
	34

	9.2
	

	Restriction Against Assignment
	 
	 
	35

	9.3
	

	Amendment, Modification, Suspension or Termination
	 
	35

	9.4
	

	Designation of Beneficiary
	 
	 
	36

	9.5
	

	Insurance
	 
	 
	36

	9.6
	

	Governing Law
	 
	 
	36

	9.7
	

	Receipt of Release
	 
	 
	37

	9.8
	

	Payments Subject to Section 162(m) of the Code
	 
	37

	9.9
	

	Payments on Behalf of Persons Under Incapacity
	 
	37

	9.10
	

	Limitation of Rights
	 
	 
	37

	9.11
	

	Exempt ERISA Plan
	 
	 
	38

	9.12
	

	Notice
	 
	 
	38

	9.13
	

	Errors and Misstatements
	 
	 
	38

	9.14
	

	Pronouns and Plurality
	 
	 
	38

	9.15
	

	Severability
	 
	 
	38

	9.16
	

	Status
	 
	 
	38

	9.17
	

	Headings
	 
	 
	39

	 
	 
	 
	 
	 

	ARTICLE X. EMPLOYEES OF SEMPRA ENERGY TRADING CORPORATION AND
SEMPRA ENERGY SOLUTIONS LLC.
	39

	 
	 
	 
	 
	 

	ARTICLE XI. SECTION 409A OF THE CODE
	 
	40

	 
	 
	 
	 
	 

THE SEMPRA ENERGY EMPLOYEE AND DIRECTOR SAVINGS PLAN
(As Amended and Restated Effective as of November 9, 2017)
Effective as of January 1, 2005, Sempra Energy, a California corporation, established the Sempra Energy 2005 Deferred Compensation Plan (the “Plan”) which was designed to provide supplemental retirement income benefits for certain directors of Sempra Energy and for a select group of management and highly compensated employees of the Company (as defined herein) through deferrals of salary and incentive compensation and employer matching contributions.  The Plan has been amended from time to time and, effective as of January 1, 2011, the name of the Plan was changed to “The Sempra Energy Employee and Director Retirement Savings Plan”.  Effective as of June 29, 2012, the name of the Plan was changed to “The Sempra Energy Employee and Director Savings Plan”.  The Plan was amended and restated effective June 16, 2015 and was subsequently amended and restated effective as of November 10, 2016.  The following provisions constitute an amendment, restatement and continuation of the Plan as in effect immediately prior to November 9, 2017. 
ARTICLE I. 
TITLE AND DEFINITIONS
1.1    Title.
This Plan shall be known as the Sempra Energy Employee and Director Savings Plan.
1.2    Definitions.
Whenever the following words and phrases are used in this Plan, with the first letter capitalized, they shall have the meanings specified below.

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	(a)
	“Account” or “Accounts” shall mean a Participant’s Deferral Account and/or Employer Matching Account (including any Subaccounts thereunder).

		
	(b)
	“Administrator” shall mean the individual(s) designated by the Committee (who need not be a member of the Committee) to handle the day-to-day Plan administration.  If the Committee does not make such a designation, the Administrator shall be the most senior officer of Human Resources of Sempra Energy.  

		
	(c)
	“Affiliate” has the meaning ascribed to such term in Rule 12b-2 promulgated under the Exchange Act. 

		
	(d)
	“Base Salary” shall mean, with respect to any Participant, the Participant’s annual base salary, excluding bonus, incentive and all other remuneration for services rendered to the Company, prior to reduction for any salary contributions to a plan established pursuant to Section 125 of the Code or qualified pursuant to Section 401(k) of the Code and prior to reduction for deferrals under this Plan.

		
	(e)
	“Beneficial Owner” has the meaning set forth in Rule 13d-3 under the Exchange Act.

		
	(f)
	“Beneficiary” or “Beneficiaries” shall mean the person or persons, including a trustee, personal representative or other fiduciary, last designated in writing by a Participant to receive the benefits specified hereunder in the event of the Participant’s death in accordance with Section 9.4.  

		
	(g)
	“Board of Directors” or “Board” shall mean the Board of Directors of Sempra Energy. 

		
	(h)
	“Bonus” shall mean the annual cash incentive award earned by a Participant under the Company’s short-term incentive plans and other special cash payments or cash awards that may be granted by the Company from time to time to the extent that such other special cash payments or cash awards are permitted by the Committee to be deferred under the Plan.

		
	(i)
	“Change in Control” shall be deemed to have occurred when any event or transaction described in paragraph (1), (2), (3) or (4) occurs, subject to paragraph (5):

(1)    Any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of Sempra Energy representing twenty percent (20%) or more of the combined voting power of Sempra Energy’s then outstanding securities; or 
(2)    The following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the Effective Date, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or 

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threatened election contest, including, but not limited to, a consent solicitation, relating to the election of directors of Sempra Energy) whose appointment or election by the Board or nomination for election by Sempra Energy’s shareholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended; or   
(3)    There is consummated a merger or consolidation of Sempra Energy or any direct or indirect subsidiary of Sempra Energy with any other corporation, other than (A) a merger or consolidation which would result in the voting securities of Sempra Energy outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of Sempra Energy or any subsidiary of Sempra Energy, at least sixty percent (60%) of the combined voting power of the securities of Sempra Energy or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (B) a merger or consolidation effected to implement a recapitalization of Sempra Energy (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of Sempra Energy (not including in the securities beneficially owned by such Person any securities acquired directly from Sempra Energy or its affiliates other than in connection with the acquisition by Sempra Energy or its affiliates of a business) representing twenty percent (20%) or more of the combined voting power of Sempra Energy’s then outstanding securities; or
(4)    The shareholders of Sempra Energy approve a plan of complete liquidation or dissolution of Sempra Energy or there is consummated an agreement for the sale or disposition by Sempra Energy of all or substantially all of Sempra Energy’s assets, other than a sale or disposition by Sempra Energy of all or substantially all of Sempra Energy’s assets to an entity, at least sixty percent (60%) of the combined voting power of the voting securities of which are owned by shareholders of Sempra Energy in substantially the same proportions as their ownership of Sempra Energy immediately prior to such sale.
(5)    An event or transaction described in paragraph (1), (2), (3), or (4) shall be a “Change in Control” only if such event or transaction is also a “change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation,” within the meaning of Section 409A of the Code.

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	(j)
	“Code” shall mean the Internal Revenue Code of 1986, as amended, and all applicable rules and regulations thereunder 

		
	(k)
	“Committee” shall mean the compensation committee of the Board of Directors.

		
	(l)
	“Company” shall mean Sempra Energy and any successor corporations.  The term “Company” shall also include each corporation which is a member of a controlled group of corporations (within the meaning of Section 414(b) of the Code) of which Sempra Energy is a component member if the Committee provides that such corporation shall participate in the Plan and such corporation’s governing board of directors adopts the Plan.  Any corporation described in the preceding sentence that participates in the Plan immediately prior to the Effective Date shall be deemed to participate in the Plan and to have adopted the Plan without any further action of either such corporation or Sempra Energy, subject to the terms and conditions of the Plan.

		
	(m)
	“Compensation” shall mean, with respect to a Participant, the following:

(1)    with respect to any Participant who is an employee, Base Salary and Bonus that the Participant is entitled to receive for services rendered to the Company.  In addition, for any Participant who is an Executive Officer “Compensation” includes (i) SERP Lump Sum, and (ii) Restricted Stock Units.  The Committee may also permit Eligible Individuals who are not Executive Officers to defer Restricted Stock Units (or any other compensation specifically designated by the Committee) provided that such Eligible Individual shall not be an Executive Officer for purposes of the Plan solely as a result of such deferral unless such Eligible Individual is otherwise designated as such by the Committee; and  
(2)    with respect to any Director, retainer payments and/or meeting and other fees (including Elective Phantom Share Amounts and Nonelective Phantom Share Amounts), received from Sempra Energy for services performed by the Participant as a Director.  
		
	(n)
	“Deferral Account” shall mean the bookkeeping account maintained under the Plan for each Participant that is credited with amounts equal to the portion of the Participant’s Compensation that he elects to defer pursuant to Section 3.1, debited by amounts equal to all distributions to and withdrawals made by the Participant and/or his Beneficiary and adjusted for investment earnings and losses pursuant to Article V.  The Deferral Account may be further subdivided into Subaccounts as determined by the Committee or the Administrator.

		
	(o)
	“Deferral Election Form” shall mean the form designated by the Committee or the Administrator for purposes of making deferrals under Section 3.1.

		
	(p)
	“Director” shall mean an individual who is a non-employee member of the Board.

		
	(q)
	“Disability” or “Disabled” means, with respect to a Participant, that the Participant: 

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(1)    is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or 
(2)    is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident or health plan covering employees of such Participant’s employer,
in either case, as determined in accordance with Section 409A of the Code.
		
	(r)
	“Distributable Amount” of a Participant’s Subaccounts with respect to a Plan Year shall mean the sum of the vested balance of the Subaccount in a Participant’s Deferral Account and Employer Matching Account with respect to such Plan Year.

		
	(s)
	“Effective Date” shall mean November 9, 2017.

(t)    (1)    “Election Period” with respect to a Plan Year shall mean the period designated by the Committee or the Administrator; provided, however, that such period shall be no less than ten (10) business days.  The Election Period with respect to a Plan Year shall end not later than the last day of the prior Plan Year; provided, however, that, in the case of an Eligible Individual who first becomes eligible to participate in the Plan during a Plan Year, the Election Period, if any, shall be the thirty (30) calendar day period (or such shorter period specified by the Committee or the Administrator) commencing on the date such Eligible Individual first becomes eligible to participate in accordance with the provisions of Section 1(v) and Section 409A of the Code; and provided, further, in the case of an Eligible Individual’s election to defer a Bonus (or portion thereof) for a Plan Year that is performance-based compensation within the meaning of Section 409A of the Code, the Election Period, if any, shall be a period designated by the Committee or the Administrator during such Plan Year that satisfies the requirements of Section 409A of the Code.  

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(2)    Notwithstanding anything to the contrary in paragraph (1), in the case of a Director who becomes a Participant in accordance with Section 2.2, with respect to the Plan Year in which such Director first becomes eligible to participate in the Plan by reason of appointment or election as a Director, “Election Period,” for purposes of:  (A) such Director’s election under paragraph 3.1(b)(3) to defer any Elective Phantom Share Amount with respect to an initial equity award granted during the Plan Year shall be the thirty (30) calendar day period (or such shorter period designated by the Committee or the Administrator) after such appointment or election (which period shall end not later than the day next preceding the grant date of such initial equity award), and (B) such Director’s election under subsection 3.1(f) of the time and form of payment of any Nonelective Phantom Share Account (or any prorated Nonelective Phantom Share Amount) credited during such Plan Year shall be the thirty (30) calendar day period (or such shorter period designated by the Committee or the Administrator) after such appointment or election (which period shall end not later than the day next preceding the first day of the calendar quarter with respect to such Nonelective Phantom Share Amount (or such prorated Nonelective Phantom Share Amount) as determined under subsection 3.1(f)); provided that any such election under clause (A) or (B) satisfies the requirements of Section 409A of the Code.
		
	(u)
	“Elective Phantom Share Amount” ” shall mean, with respect to an initial or annual equity award by Sempra Energy to a Participant who is a Director, which the Director may elect to receive in the form of (1) an award of Restricted Stock Units, or (2) an amount credited to such Participant’s Deferral Account in the Sempra Energy Stock Fund, the dollar value designated by the Board for such equity award that is used for purposes of determining the number of Restricted Stock Units subject to such award, or the amount to be credited to such Participant’s Deferral Account.  In the case of a Director who first becomes a Director by reason of appointment or election as a Director, any such initial equity award shall be granted on the tenth New York Stock Exchange trading day after such appointment or election.

		
	(v)
	“Eligible Individual” shall mean those individuals selected by the Committee from (1) those employees of the Company who either (A) are Executive Officers or (B) have Base Salary for a calendar year that is at least $170,000, as adjusted by the Committee from time to time and (2) those Directors who are not employees of the Company.  The Committee may, in its sole discretion, select such other individuals to participate in the Plan who do not otherwise meet the foregoing criteria.  Except as otherwise provided by the Committee or the Administrator, an Eligible Individual who is not a Director shall first become eligible to participate in the Plan on first day of the first calendar quarter that occurs at least thirty (30) days after the Eligible Individual commences employment in a covered category as set forth in clause (A) or (B) of this Section 1.2(v) (and, to the extent applicable, is selected as an Eligible Individual under the Plan). A Director shall become a Participant in the Plan in accordance with Section 2.2 on the date of such Director’s appointment or election as a Director.

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	(w)
	“Employer Matching Account” shall mean the bookkeeping account maintained under the Plan for each Participant that is credited with an amount equal to the Employer Matching Contribution, if any, debited by amounts equal to all distributions to and withdrawals made by the Participant and/or his Beneficiary and adjusted for investment earnings and losses pursuant to Article V.

		
	(x)
	“Employer Matching Contributions” shall mean the employer matching contribution made to the Plan pursuant to Section 3.3.

		
	(y)
	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, and all applicable rules and regulations thereunder.

		
	(z)
	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the applicable rules and regulations thereunder.

		
	(aa)
	“Executive Officer” shall mean an employee of the Company who (i) is designated by the Board as an executive officer of Sempra Energy pursuant to Rule 3b-7 of the Exchange Act, (ii) participates in the Sempra Energy Supplemental Executive Retirement Plan, or (iii) who is otherwise designated as an Executive Officer by the Committee.  

		
	(bb)
	“401(k) Plan” shall mean the Sempra Energy Savings Plan, as in effect from time to time,  maintained by Sempra Energy under Section 401(k) of the Code. 

		
	(cc)
	“Manager” shall mean an employee of the Company who is an Eligible Individual, other than an Executive Officer or a Director.

		
	(dd)
	“Measurement Fund” shall mean one or more of the investment funds selected by the Committee pursuant to Section 4.1.

		
	(ee)
	“Moody’s Plus Rate” shall mean the Moody’s Rate (as defined below) plus the greater of  (1) 10% of the Moody’s Corporate Bond Yield Average – Monthly Average Corporates as published by Moody’s Investors Service, Inc. (or any successor) or (2) one percentage point per annum. The Moody’s Rate for a month means the average of the daily Moody’s Corporate Bond Yield Average – Monthly Average Corporates for the applicable month.  Unless otherwise designated by the Committee, the “applicable month” shall be the month of June in the prior year.

		
	(ff)
	“Nonelective Phantom Share Amount” shall mean the dollar amount designated by the Board for purposes of subsection 3.1(f) to be invested in the Sempra Energy Stock Fund.

		
	(gg)
	“Participant” shall mean any Eligible Individual who becomes a Participant in accordance with Article II and who has not received a complete distribution of the amounts credited to his Accounts.

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	(hh)
	“Payroll Date” shall mean, with respect to any Participant, the date on which he would otherwise be paid Compensation.

		
	(ii)
	“Payment Date” shall mean the business day determined by the Committee or the Administrator that is on or within thirty (30) calendar days after one of the following dates as designated by the Participant in his distribution form election with respect to a Plan Year:

(1)    the first business day of the first calendar month on or next following thirty (30) calendar days after the date of the Participant's Separation from Service or Disability, 
(2)    the first business day of the first, second, third, fourth or fifth calendar year next following the date of the Participant’s Separation from Service or Disability; or
(3)    such other date provided by the Committee or the Administrator (or elected by the Participant in accordance with rules established by the Committee or the Administrator), in any case which does not violate the requirements of Section 409A of the Code.
“Payment Date” shall also mean the Scheduled Withdrawal Date elected in accordance with the provisions of subsection 7.1(b).  
		
	(jj)
	“Person” means any person, entity or “group” within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, except that such term shall not include (1) Sempra Energy or any of its Affiliates, (2) a trustee or other fiduciary holding securities under an employee benefit plan of Sempra Energy or any of its Affiliates, (3) an underwriter temporarily holding securities pursuant to an offering of such securities, (4) a corporation owned, directly or indirectly, by the shareholders of Sempra Energy in substantially the same proportions as their ownership of stock of Sempra Energy, or (5) a person or group as used in Rule 13d-1(b) under the Exchange Act.

		
	(kk)
	“Plan” shall mean the Sempra Energy Employee and Director Savings Plan set forth herein, as amended from time to time.

		
	(ll)
	“Plan Year” shall mean the twelve (12) consecutive month period beginning on each January 1 and ending on each December 31.

		
	(mm)
	“QDRO” shall mean a domestic relations order that constitutes a “qualified domestic relations order” within the meaning of the Code or ERISA.

		
	(nn)
	“Restricted Stock Units” shall mean restricted stock units granted to a Participant under the Sempra Energy 2008 Long Term Incentive Plan, Sempra Energy 2013 Long-Term Incentive Plan,  and any successor plan(s) thereto.

		
	(oo)
	“Rule 16b-3” shall mean that certain Rule 16b-3 under the Exchange Act, as such Rule may be amended from time to time.

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	(pp)
	“Scheduled Withdrawal Date” shall be in January in the year elected by the Participant for an in-service withdrawal elected in accordance with subsection 3.2(c), as set forth on the election forms for such Plan Year.  If the day elected by the Participant is not a business day, the Scheduled Withdrawal Date shall be deemed to be the next following business day.

		
	(qq)
	“Sempra Energy Stock Fund” shall mean the Measurement Fund in which investment earnings and losses parallel the investment return on the common stock of Sempra Energy.

		
	(rr)
	“Separation from Service” shall mean, with respect to a Participant, the Participant’s “separation from service,” as defined in Treasury Regulation Section 1.409A-1(h).   

		
	(ss)
	“SERP Lump Sum” shall mean the lump sum retirement benefit that would be payable to an Executive Officer who is a Plan Participant under either the Sempra Energy Supplemental Executive Retirement Plan or the Sempra Energy Excess Cash Balance Plan.

		
	(tt)
	“Specified Employee” shall mean a specified employee determined in accordance with the requirements of Section 409A of the Code.

		
	(uu)
	“Subaccount” or “Subaccounts” shall mean the subaccount or subaccounts maintained with respect to a Participant’s Deferral Account or Employer Matching Account.

		
	(vv)
	“Valuation Date”, with respect to the Measurement Funds that are available under the 401(k) Plan, shall have the same meaning as under the 401(k) Plan.  For purposes of the Measurement Fund based on Moody’s Plus Rate, “Valuation Date” shall mean the last day of the calendar month.  

ARTICLE II.     
PARTICIPATION
2.1    Commencement of Participation
Subject to Section 2.2, an Eligible Individual shall become a Participant in the Plan by (1) electing to make deferrals in accordance with Section 3.1 and (2) filing such other forms as the Committee or the Administrator may reasonably require for participation hereunder.  
2.2    Newly Appointed or Elected Directors
A Director who first becomes an Eligible Individual during a Plan Year by reason of appointment or election as a Director shall become a Participant on the date of such appointment or election.  Such Eligible Individual may elect to make deferrals in accordance with Section 3.1 and shall file such forms as the Committee or the Administrator reasonably requires.

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ARTICLE III.     
CONTRIBUTIONS
3.1    Elections to Defer Compensation
		
	(a)
	General Rule.  Each Eligible Individual may defer Compensation for a Plan Year by filing with the Committee or the Administrator a Deferral Election Form for such Plan Year that conforms to the requirements of this Section 3.1, no later than the last day of the applicable Election Period for such Plan Year, and such deferral election shall become irrevocable on the last day of the applicable Election Period for such Plan Year (or such later date permitted by the Committee or the Administrator consistent with the requirements of Section 409A of the Code).  Unless otherwise provided by the Committee, an Eligible Individual who first becomes eligible to participate in the Plan during a Plan Year may elect to defer Compensation for such Plan Year; provided, however, that any such election to defer Compensation for such Plan Year must be filed during the Election Period prior to the effective date of such election, shall be irrevocable when made, and shall be effective only for Compensation that constitutes compensation for services performed during periods during the Plan Year beginning after the effective date of such election.  Notwithstanding the previous sentence, if an Eligible Individual’s Bonus (or portion thereof) is a performance-based compensation within the meaning of Section 409A of the Code, the Committee or the Administrator may permit such Eligible Individual to file an election to defer such Bonus (or such portion thereof), or change such Eligible Individual’s prior election to defer such Bonus (or such portion thereof), no later than the date that is six (6) months before the end of the performance period over which such services are to be performed, under the terms and conditions that may be specified by the Committee or the Administrator, in accordance with Section 409A of the Code, and such deferral election shall become irrevocable on the date that is six (6) months before the end of the performance period.  

		
	(b)
	Special Rules.  Notwithstanding the above, the following restrictions apply to deferrals of certain elements of Compensation:

(1)    Restricted Stock Units.  Each Eligible Individual designated by the Committee as eligible to defer Restricted Stock Units, may elect to defer Restricted Stock Units (or a portion thereof), in accordance with such rules as the Committee may establish, which such rules shall not be inconsistent with the deferral election rules set forth in Sections 3.1 and 3.2 or the distribution provisions of Section 7.1.  In order to defer Restricted Stock Units (or a portion thereof), an eligible Participant must file the appropriate Deferral Election Form no later than the election date required under Section 409A of the Code.  The Participant’s election to defer Restricted Stock Units (or a portion thereof) shall apply only if the Restricted Stock Units (or portion thereof) constitute a legally binding right to a payment of compensation in a subsequent taxable year and, absent a deferral election, would be treated as a short-term deferral, within the meaning of Section 409A of the Code.  Any deferral election that does not satisfy the requirements for an initial deferral election under Section 409A of the Code shall be irrevocable when made and shall be 

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made in accordance with Section 409A of the Code, applied as if the amount were a deferral of compensation and the scheduled payment date for the amount were the date the substantial risk of forfeiture lapses. Such subsequent deferral election shall be irrevocable when made, shall be made at least twelve (12) months prior to the first date on which Restricted Stock Units are scheduled to be paid (or, in the case of installment payments, twelve (12) months prior to the date on which the first amount is to be paid), and shall not take effect until at least twelve (12) months after the date on which the election is made.  Such deferral election shall provide that the amount deferred shall be deferred for a period of not less than five (5) years from the date the payment of the amount deferred would otherwise have been made (or, in the case of installment payments treated as a single payment as determined under Section 409A of the Code, five (5) years from the date the first amount was scheduled to be paid); provided, however, that such deferral election may provide that the deferred amounts will be payable upon a change in control event (within the meaning of Section 409A of the Code) without regard to the five (5) year additional deferral requirement.  Deferrals of Restricted Stock Units shall be invested in the Sempra Energy Stock Fund and may not be moved to any other Measurement Fund.  Notwithstanding anything contained in the Plan to the contrary, a Participant may not elect a Scheduled Withdrawal Date with respect to the deferral of any Restricted Stock Units.
(2)    SERP Lump Sum.  A Participant may elect to defer a SERP Lump Sum (or a portion thereof), to the extent permitted by the Committee.  In order to defer a SERP Lump Sum (or a portion thereof), an eligible Participant must file the appropriate Deferral Election Form no later than the election date required under Section 409A of the Code.  The Participant’s election to defer a SERP Lump Sum (or a portion thereof) that does not satisfy the requirements for an initial deferral election under Section 409A of the Code shall satisfy the requirements of Section 409A of the Code as a subsequent deferral.  Such deferral election shall be irrevocable when made, and shall not take effect until at least twelve (12) months after the date on which the election is made.  Such deferral election shall provide that the amount deferred shall be deferred for a period of not less than five (5) years from the date the payment of the amount deferred would otherwise have been made (or, in the case of installment payments treated as a single payment, five (5) years from the date the first amount was scheduled to be paid) in accordance with Section 409A of the Code. 
(3)    Elective Phantom Share Amounts.  A Participant who is a Director and is entitled to receive an initial or annual equity award from Sempra Energy, in the form of an award of Restricted Stock Units or an amount credited to his Deferral Account, may elect to have the Elective Phantom Share Amount with respect to such award credited to his Deferral Account (in lieu of such award of Restricted Stock Units) and defer such Elective Phantom Share Amount.  In order to elect such credit and deferral of the Elective Phantom Share Amount with respect to such an equity award, an eligible Participant must file the appropriate Deferral Election Form no later than the last day of the applicable Election Period for the Plan Year during which such equity award is granted, and such deferral election shall become irrevocable on the last day of the applicable Election Period for such Plan Year.  A Director who first becomes a Participant during a Plan Year may make a deferral election during such Plan Year in accordance with subparagraph 1.2(t)(2)(A).  Such an election to defer an Elective Phantom Share Amount with respect to an equity award granted during a Plan Year must be filed during the Election Period prior to the effective date of such election and shall be irrevocable when made and shall be effective only for an Elective Phantom Share Amount that constitutes compensation for services performed after the effective date of such election.  If a Participant fails to elect such credit and deferral of the Elective Phantom Share Amount with respect to 

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such an equity award, the Participant’s equity award shall not be deferred and shall be made in the form of an award of Restricted Stock Units.  A Participant shall make a separate election to defer Elective Phantom Share Amounts for each Plan Year.
		
	(c)
	Deferral Amounts.  The amount of Base Salary or Bonus that a Participant may elect to defer for a Plan Year is such Base Salary or Bonus earned on or after the time at which the Participant elects to defer for such Plan Year in accordance with subsection 3.1(a), and that is earned during the Plan Year to which the deferral election relates (other than with respect to subsequent deferrals of previously deferred amounts or other amounts that are treated as subsequent deferrals for purposes of Section 409A of the Code).  In no event shall a Participant be permitted to defer any amount of Compensation earned prior to the date of the deferral election or attributable to services performed prior to the date of the deferral election (other than with respect to subsequent deferrals of previously deferred amounts or other amounts that are treated as subsequent deferrals for purposes of Section 409A of the Code or as permitted under the Plan relating to performance-based compensation).  

(1)    Each Participant who is a Manager shall be permitted to defer, in any whole percentage:  (A) from 6% to 85% of Base Salary, (B) from 6% to 85% of his Bonus, and (C) if permitted by the Committee, between 10% and 100% of such Participant’s Restricted Stock Units, subject to subsection 3.1(b).
(2)    Each Participant who is an Executive Officer shall be permitted to defer, in any whole percentage:  (A) from 6% to 85% of Base Salary, (B) from 6% to 85% of his Bonus and (c) from 10% to 100% of such Participant’s Restricted Stock Units and SERP Lump Sum, subject to subsection 3.1(b). 
(3)    Each Participant who is a Director: (A) shall be permitted to defer, in any whole percentage, from 10% to 100% of his Compensation (other than Elective Phantom Share Amounts and Nonelective Phantom Share Amounts), and (B) shall be permitted to defer 100% of his Elective Phantom Share Amounts.  In the case of a Participant who is a Director, 100% of such Participant’s Nonelective Phantom Share Amounts shall be deferred under subsection 3.1(f).
Notwithstanding the limitations established above, the total amount deferred by a Participant shall be limited in any calendar year, if necessary, to satisfy the Participant’s income and employment tax withholding obligations (including Social Security, unemployment and Medicare), and the Participant’s employee benefit plan contribution requirements, determined on the first day of the Election Period for such Plan Year, in any case as determined by the Committee or the Administrator, as applicable.  
		
	(d)
	Duration of Deferral Election. 

(1)    A Participant shall not modify or suspend his election to defer Compensation during a Plan Year.

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(2)    A Participant must file a new deferral election for each subsequent Plan Year.  In the event a Participant fails to file a timely deferral election for the next Plan Year, he shall be deemed to have elected not to defer any Compensation for such Plan Year.
(3)    A Participant’s election to defer all or any portion of his SERP Lump Sum shall automatically become void in the event the Participant dies or becomes disabled while employed by the Company.
(4)    A Participant who is a Director must file a new deferral election for the Elective Phantom Share Amounts for the equity awards granted during each Plan Year.  In the event a Participant fails to file a timely deferral election for the next Plan Year, he shall be deemed to have elected not to defer the Elective Phantom Share Amounts for the equity awards granted during such Plan Year.

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	(e)
	Elections.  Any Eligible Individual who does not elect to defer Compensation during his Election Period for a Plan Year may subsequently participate in the Plan in accordance with the terms and conditions of the Plan.  

		
	(f)
	Nonelective Compensation Deferrals for Directors.  The Board may determine from time to time whether deferrals of Nonelective Phantom Share Amounts shall be credited to the Deferral Accounts of one or more Participants who are Directors.  The Board shall designate the Nonelective Phantom Share Amounts and any conditions under which a Director shall be entitled to have Nonelective Phantom Share Amounts credited to his Deferral Account.  A Nonelective Phantom Share Amount credited to a Director’s Deferral Account shall constitute compensation for services to be performed by the Director during a calendar quarter, and the Nonelective Phantom Share Amount for such calendar quarter shall be credited to the Director’s Deferral Account on the first New York Stock Exchange trading day of such calendar quarter; provided, however, that, in the case of a Director who first becomes a Director by reason of appointment or election as a Director, for purposes of the calendar quarter during which such appointment or election occurs, such Director’s Deferral Account shall be credited with a prorated portion of the Nonelective Phantom Share Amount for the portion of such calendar quarter (if any), commencing on the tenth New York Stock Exchange trading day after such Director’s appointment or election and ending on the last day of the calendar quarter, and any such prorated portion of the Nonelective Phantom Share Amount shall constitute compensation for services to be performed by the Director during the period commencing on such tenth New York Stock Exchange trading day and ending on the last day of such calendar quarter and shall be determined based on the portion of such calendar quarter that comprises such period and such prorated portion of the Nonelective Phantom Share Amount shall be credited to the Director’s Deferral Account on the New York Stock Exchange trading day next following the last day of such calendar quarter.  The service period for a Nonelective Phantom Share Amount (or a prorated Nonelective Phantom Share Amount) shall be the calendar quarter, or portion thereof, during which the Director performs services for which such Nonelective Phantom Share Amount (or prorated Phantom Share Amount) constitutes compensation.  Such Nonelective Phantom Share Amounts shall be deferred on a nonelective basis.  An eligible Participant must file the appropriate Deferral Election Form with respect to the Nonelective Phantom Share Amounts that constitute compensation for services performed during periods during the Plan Year beginning after the effective date of such election, for purposes of electing the Payment Date and the form of distribution of such Nonelective Phantom Share Amounts, no later than the last day of the applicable Election Period for the Plan Year during which such Nonelective Phantom Share Amounts are credited, and such deferral election shall become irrevocable on the last day of the applicable Election Period for such Plan Year.  The Committee or the Administrator shall permit such a Participant who first becomes a Participant during a Plan Year to have his first Election Period with 

14

respect to such election of the Payment Date and the form of distribution during such Plan Year determined in accordance with subparagraph 1.2(t)(2)(B).  Such an election as to the Payment Date and the form of distribution must be filed during the Election Period prior to the effective date of such election and shall be irrevocable when made and shall be effective only for a Nonelective Phantom Share Amount that constitutes compensation for services performed after the date of such election.   
		
	(g)
	Termination of Participation and/or Deferrals.  If the Committee or the Administrator determines in good faith that a Participant no longer qualifies as a Director or a member of a select group of management or highly compensated employees, as membership in such group is determined in accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, the Committee or the Administrator shall have the right, in its sole discretion and only for purposes of preserving the Plan’s exemption from Title I of ERISA, to prevent the Participant from making deferral elections for future Plan Years.  

3.2    Distribution Elections.

15

		
	(a)
	General Rule.  Each Participant shall make a separate distribution election with respect to each Plan Year for which such Participant elects to defer Compensation in accordance with Section 3.1.  In the case of each Participant who is a Director, such Participant shall make a separate distribution election with respect to each Plan Year without regard to whether such Participant elects to defer Compensation in accordance with Section 3.1.  A Participant’s distribution election with respect to a Plan Year shall apply to:  (1) the Subaccount in his Deferral Account to which shall be credited the amount equal to the portion of his Compensation earned during such Plan Year that he elects to defer pursuant to Section 3.1, (2) in the case of a Participant who is a Director, the Subaccount in his Deferred Account to which shall be credited any Elective Phantom Share Amounts for equity awards granted during such Plan Year that he elects to defer pursuant to Section 3.1, and the Subaccount in his Deferral Account to which shall be credited any Nonelective Phantom Share Amounts during such Plan Year pursuant to subsection 3.1(f), and (3) the Subaccount in his Employer Matching Account to which shall be credited the amount equal to the Employer Matching Contribution for such Plan Year.  A Participant may elect any Payment Date described in subsection 1.2(ii), and may elect distribution in the normal form, as described in paragraph 7.1(a)(1), or an optional form described in paragraph 7.1(a)(2).  Such Payment Date and distribution form elections shall be made on such Participant’s Deferral Election Form during the Election Period for which such Participant elects to defer Compensation under Section 3.1 for such Plan Year, and such Payment Date and distribution form elections with respect to such Plan Year shall be irrevocable, except as provided in subsection 3.2(b).  In the event a Participant fails to elect a Payment Date for his Distributable Amount with respect to a Plan Year, his Payment Date for his Distributable Amount with respect to such Plan Year shall be the date described in paragraph 1.2(ii)(1).  In the event a Participant fails to make a distribution form election for his Distributable Amount with respect to a Plan Year, his Distributable Amount with respect to such Plan Year shall be distributed in the normal form, as described in paragraph 7.1(a)(1) in the event of his Separation from Service or Disability, except as provided in subsection 3.2(b).  Except as provided in subsection 3.2(b), a Participant’s distribution for his Distributable Amount with respect to a Plan Year shall be made or commence on such Participant’s Payment Date.

		
	(b)
	Changes to Distribution Form Election.   Subject to subsection 3.2(e), a Participant may change his distribution form election for his Distributable Amount with respect to a Plan Year in accordance with this subsection 3.2(b) as follows:

(1)    Change from Lump Sum.  If such Participant elected to receive the distribution of his Distributable Amount with respect to a Plan Year in the event of his Separation from Service or Disability in a lump sum, such Participant may change such distribution form election by making a new distribution form election for his Distributable Amount with respect to such Plan Year providing for distribution in one of the following forms, with such distribution made or commencing on the fifth anniversary of his Payment Date:

16

(A)    a lump sum,

(B)    annual installments (calculated as set forth at paragraph 7.1(a)(6)) over five (5) years,
 
(C)    annual installments (calculated as set forth at paragraph 7.1(a)(6) over ten (10) years, or

(D)    annual installments (calculated as set forth at paragraph 7.1(a)(6)) over fifteen (15) years.

(2)    Change from Installments.  If such Participant elected to receive the distribution of his Distributable Amount with respect to a Plan Year in the event of his Separation from Service or Disability in annual installments over five (5), ten (10) or fifteen (15) years, such Participant may change such distribution form election by making a new distribution form election for his Distributable Amount with respect to such Plan Year providing for distribution in one of the following forms, with such distribution commencing on the fifth anniversary of his Payment Date:

(i)    annual installments (calculated as set forth at paragraph 7.1(a)(6)) over the period of years specified in such Participant’s initial distribution form election, or

(ii)    annual installments (calculated as set forth at paragraph 7.1(a)(6)) over a period of either ten (10) years or fifteen (15) years, provided that such period exceeds the period of years specified in such Participant’s initial distribution form election.

(3)    A Participant may make only one change to his distribution form election with respect to a Plan Year under this subsection 3.2(b).

17

		
	(c)
	Election of Scheduled Withdrawal Date.  A Participant may elect a Scheduled Withdrawal Date with respect to his deferrals of Compensation (the “Withdrawal Amount”) with respect to a Plan Year.  Such election of a Scheduled Withdrawal Date for such Participant’s Withdrawal Amount with respect to a Plan Year shall be made by such Participant during the Election Period for which such Participant elects to defer Compensation under Section 3.1 for such Plan Year, and such election of a Scheduled Withdrawal Date shall be irrevocable, except as provided in subsection 3.2(d).  A Participant may make separate Scheduled Withdrawal Date elections for his deferrals of Compensation with respect to different Plan Years.  A Participant’s Withdrawal Amount with respect to a Plan Year shall be credited to Subaccounts under such Participant’s Accounts for such Plan Year.  A Participant shall not be required to elect a Scheduled Withdrawal Date with respect to his deferrals of Compensation for a Plan Year and, if a Participant fails to make an election of a Scheduled Withdrawal Date for a Plan Year, no Scheduled Withdrawal Date shall apply with respect to his deferrals of Compensation for such Plan Year.  For purposes of the Plan, the deferrals of Compensation included as part of the Withdrawal Amount (i) shall be adjusted for investment earnings and losses in the case of elections made on or after November 10, 2016 and (ii) shall be adjusted for investment losses (but not investment earnings) in the case of elections made prior to November 10, 2016.

		
	(d)
	Change of Scheduled Withdrawal Date.  Subject to subsection 3.2(e), if a Participant elected a Scheduled Withdrawal Date with respect to his deferrals of Compensation with respect to a Plan Year in accordance with subsection 3.2(c), such Participant may change such Scheduled Withdrawal Date for the Withdrawal Amount with respect to such Plan Year by electing a new Scheduled Withdrawal Date for the Withdrawal Amount with respect to such Plan Year that is not less than five (5) years later than the Scheduled Withdrawal Date previously elected by such Participant for such Plan Year.  A Participant who has not elected a Scheduled Withdrawal Date for his deferrals of Compensation in accordance with subsection 3.2(c) for a Plan Year may not subsequently elect a Scheduled Withdrawal Date for his deferrals of Compensation for such Plan Year.  A Participant may make only one change to the Scheduled Withdrawal Date with respect to each Plan Year under this subsection 3.2(d).  

		
	(e)
	Limitation on Distribution Changes.  A Participant’s election to change his distribution form election with respect to a Plan Year under subsection 3.2(b), or change of a Scheduled Withdrawal Date with respect to a Plan Year under subsection 3.2(d), shall be subject to the following limitations:

(1)    The Participant’s election to change his distribution election form with respect to a Plan Year, or change his Scheduled Withdrawal Date with respect to a Plan Year, shall not take effect until at least twelve (12) months after his election to change the distribution form election, or Scheduled Withdrawal Date, is made.  If the distribution of such Participant’s Distributable Amount with respect to a Plan Year (in the case of a change in his distribution election form), or the distribution of the Withdrawal 

18

Amount with respect to such Plan Year (in the case of a change in his Scheduled Withdrawal Date), is made or commence before the election to change his distribution form election or Scheduled Withdrawal Date, as the case may be, becomes effective, the election to change his distribution form election or Scheduled Withdrawal Date shall not thereafter become effective, and distributions shall be made in accordance with the distribution form election, and Scheduled Withdrawal Date (if any), as applicable, in effect prior to the Participant’s election to change.

(2)    The Participant’s election to change his distribution election form with respect to a Plan Year, or change his Scheduled Withdrawal Date with respect to a Plan Year, shall provide that each payment with respect to such new distribution form election, or new Scheduled Withdrawal Date, shall be deferred for a period of not less than five (5) years from the date such payment would otherwise have been made.

(3)    The Participant’s election to change his Scheduled Withdrawal Date with respect to a Plan Year shall not be made less than twelve (12) months prior to the date of the first scheduled payment under the Participant’s initial election of the Scheduled Withdrawal Date with respect to such Plan Year.

The limitations under this subsection 3.2(e) shall be applied in accordance with Section 409A of the Code.

3.3    Employer Matching Contributions. 
		
	(a)
	The Company shall make an Employer Matching Contribution for each payroll date during a Plan Year, on behalf of each Participant who is employed by the Company on such payroll date, who has been employed by the Company for at least one (1) year as of such payroll date, and who makes deferrals of Base Salary and/or Bonus under Article III, in an amount equal to: 

(1)    the product of (A) 3% and (B) the sum of the deferrals of Base Salary and Bonus deferred under Article III for such payroll period; plus

(2)    the product of (A) 3% and (B) the difference between (I) the Participant’s Base Salary  and Bonus for such payroll period and (II) the sum of the deferrals of Base Salary and/or Bonus deferred under Article III for such payroll period, reduced by (C) the amount of the matching contribution made under the 401(k) Plan for such payroll period not in excess of 3% of the Participant’s eligible 401(k) Plan compensation. Notwithstanding any other provision of the Plan to the contrary, no Employer Matching Contributions shall be made under this paragraph (2) unless and until the Participant has made to the 401(k) Plan the maximum elective contributions permitted under Section 402(g) or the maximum pre-tax elective contributions permitted under the terms of the 401(k) Plan and in no event shall the Employer Matching Contributions made pursuant to this paragraph (2) exceed 100% of the matching contributions that would be provided under the 401(k) Plan absent any plan-based restrictions on contributions to qualified plans under the Code.
 
If a Participant is employed by more than one corporation that is included in the Company, the foregoing computation shall be applied to each such corporation based on the portion of the Plan Year during which 

19

the Participant was employed by such corporation.  Notwithstanding the above, the Committee reserves the right to change or eliminate the Employer Matching Contribution in its sole discretion for any subsequent Plan Year.
		
	(b)
	The Employer Matching Contribution for a Plan Year shall be credited to a Participant’s Employer Matching Account in the manner determined by the Committee or the Administrator.

3.4    FICA and Other Taxes.  
(a)    Withholding, Generally.  The Company shall have the right to withhold from any payments due under the Plan (or with respect to amounts credited to the Plan) any taxes required by law to be withheld in respect of such payment (or credit).
(b)    Annual Deferral Amounts.  For each Plan Year in which a Participant who is an employee makes a deferral under Section 3.1, the Participant’s employer shall withhold from that portion of the Participant’s Compensation that is not being deferred, in a manner determined by the employer, the Participant’s share of FICA and other employment taxes on such amount.  If necessary, the Committee or the Administrator may reduce the Participant's deferrals under Section 3.1 or make deductions from his Deferral Account in order to comply with this Section 3.4, to the extent permitted under Section 409A of the Code.
(c)    Employer Matching Amounts.  For each Plan Year in which a Participant is credited with a contribution to his Employer Matching Account under Section 3.3, the Participant’s employer shall withhold from the Participant’s Compensation that is not deferred, in a manner determined by the employer, the Participant’s share of FICA and other employment taxes.  If necessary, the Committee or the Administrator may reduce the Participant’s Employer Matching Account in order to comply with this Section 3.4, to the extent permitted under Section 409A of the Code. 
(d)    Sempra Energy Stock Fund.  With respect to distributions of all or a portion of balances invested in the Sempra Energy Stock Fund, withholding obligations shall be satisfied through the surrender of the applicable withholding percentage of such distributed balances (or portion thereof) in the Sempra Energy Stock Fund.  Unless otherwise approved by the Committee, withholding obligations for Restricted Stock Units deferred into the Plan shall be satisfied by payment by the applicable Participant, deducted from other Compensation payable to such Participant which has not been deferred under the Plan, or a combination of these methods.

20

ARTICLE IV.     
INVESTMENTS
4.1    Measurement Funds.
		
	(a)
	Election of Measurement Funds.  In the manner designated by the Committee or the Administrator, Participants may elect one or more Measurement Funds to be used to determine the additional amounts to be credited to their Accounts.  Although the Participant may designate the available Measurement Funds that will be used to determine additional amounts to be credited to their Accounts, neither the Committee nor the Administrator shall be bound to make actual investments in such Measurement Funds based on the Participant’s election.  If the Committee designates a substitute Measurement Fund for a Participant (without regard to the Participant’s election), the substitute Measurement Fund must provide the Participant with an investment opportunity reasonably comparable to the original Measurement Funds elected by the Participant, as determined by the Committee in its sole discretion.  The Committee shall select from time to time, in its sole discretion, the Measurement Funds to be available under the Plan. 

		
	(b)
	No Actual Investment.  Notwithstanding any other provision of this Plan that may be interpreted to the contrary, the Measurement Funds are to be used for measurement purposes only, and a Participant’s election of any such Measurement Fund, the allocation to his Accounts thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant’s Accounts shall not be considered or construed in any manner as an actual investment of his Accounts in any such Measurement Fund.  In the event that the Committee, the Administrator, or the trustee, as applicable, in its own discretion, decides to invest funds in any or all of the Measurement Funds, no Participant shall have any rights in or to such investments themselves.  Without limiting the foregoing, a Participant’s Accounts shall at all times be a bookkeeping entry only and shall not represent any investment made on his behalf by the Company.  The Participant shall at all times remain an unsecured creditor of the Company 

4.2    Investment Elections.  
		
	(a)
	Participants.  

(1)    Deferral Accounts.  Except as provided in paragraph 4.2(a)(2) and Section 4.3, Participants may designate how their Deferral Accounts shall be deemed to be invested under the Plan.
(A)    Such Participants may make separate investment elections for (I) their future deferrals of Compensation and (II) the existing balances of their Deferral Accounts.  
(B)    Such Participants may make and change their investment elections by choosing from the Measurement Funds designated by the Committee in accordance with the procedures established by the Committee or the Administrator.  

21

(C)    Except as otherwise designated by the Committee, the available Measurement Funds under this paragraph 4.2(a)(1) shall be the investment funds under the 401(k) Plan (excluding the Stable Value Fund and any brokerage account option), the Sempra Energy Stock Fund and the Measurement Fund based on the Moody’s Plus Rate.  
(D)    If a Participant fails to elect a Measurement Fund under this subsection 4.2(a), he shall be deemed to have elected the Measurement Fund based on the Moody’s Plus Rate (unless a different default fund is designated by the Committee) for all of his Accounts.
(2)Employer Matching Account and Certain Deferral Subaccounts.  
(A)    (2)    Employer Matching Account and Certain Deferral Subaccounts.  Unless otherwise provided by the Committee or the Administrator, Employer Matching Contributions credited to a Participant’s Employer Matching Account shall be invested in Measurement Funds in the same proportion as the corresponding deferrals of Compensation that are credited to his Deferral Account.  Unless otherwise provided by the Committee, a Participant may, however, transfer the investment of the Employer Matching Contributions credited to his Employer Matching Account into any Measurement Fund and may change their investment elections by choosing from the Measurement Funds designated by the Committee in accordance with the procedures established by the Committee or the Administrator. The deferrals of a Participant’s Restricted Stock Units credited to such Participant’s Deferral Account shall be deemed invested in the Sempra Energy Stock Fund and may not be moved into any other Measurement Fund. 
(B)    The deferrals of Elective Phantom Share Amounts and Nonelective Phantom Share Amounts credited to a Participant’s Deferral Account shall be initially deemed invested in the Sempra Energy Stock Fund and shall remain deemed invested in the Sempra Energy Stock Fund until the Participant’s Separation from Service.  After the Participant’s Separation from Service, a Participant may direct the investment of the Elective Phantom Share Amount Subaccounts or Nonelective Phantom Share Amount Subaccounts of the Participant’s Deferral Account into any other Measurement Fund, as permitted by the Committee.

22

		
	(b)
	Continuing Investment Elections.  Participants who have had a Separation From Service but not yet commenced distributions under Article VII or Participants or Beneficiaries who are receiving installment payments may continue to make investment elections as permitted under subsection 4.2(a) except as otherwise determined by the Committee.  

4.3    Compliance with Section 16 of the Exchange Act.  
		
	(a)
	Any Participant or Beneficiary who is subject to Section 16 of the Exchange Act shall have his Measurement Fund elections under the Plan subject to the requirements of the Exchange Act, as interpreted by the Committee.  Any such Participant or Beneficiary who either (i) transferred amounts from another available Measurement Fund under the Plan into the Sempra Energy Stock Fund or (ii) transferred any amounts from the Sempra Energy Stock Fund to another available Measurement Fund under the Plan may not make an election with the opposite effect under this Plan or any other Company-sponsored plan until six (6) months and one (1) day following the original election.

		
	(b)
	Notwithstanding any other provision of the Plan or any rule, instruction, election form or other form, the Plan and any such rule, instruction or form shall be subject to any additional conditions or limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b‐3) that are requirements for the application of such exemptive rule.  To the extent permitted by applicable law, such Plan provision, rule, instruction or form shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

ARTICLE V.     
ACCOUNTS
5.1    Accounts.

23

		
	(a)
	The Committee or the Administrator shall establish and maintain a Deferral Account, and an Employer Matching Account for each Participant under the Plan.   Each Participant’s Accounts shall be divided into separate Subaccounts in accordance with Section 5.2.  Each such Subaccount shall be further divided into separate investment fund Subaccounts, each of which corresponds to a Measurement Fund elected by the Participant pursuant to Section 4.2.  In addition, Participants’ Deferral Accounts shall be further divided into Subaccounts consisting of deferred Restricted Stock Units, Elective Phantom Share Amounts, and Nonelective Phantom Share Amounts.  A separate Subaccount shall be maintained for each deferral of Restricted Stock Units, Nonelective Phantom Share Amount and Elective Phantom Share Amount.

		
	(b)
	The performance of each elected Measurement Fund (either positive or negative) shall be determined by the Committee or the Administrator, in its reasonable discretion, based on the performance of the Measurement Funds themselves.  A Participant’s Accounts shall be credited or debited on each Valuation Date, as determined by the Committee or the Administrator in its reasonable discretion,  based on the performance of each Measurement Fund selected by the Participant as though (i) a Participant’s Accounts were invested in the Measurement Fund(s) selected by the Participant, in the percentages applicable to such period, as of the close of business on the first business day of such period, at the fair market value on such date; (ii) the portion of the Participant's Compensation that was actually deferred pursuant to Section 3.1 during any period were invested in the Measurement Fund(s) selected by the Participant, in the percentages applicable to such period, no later than the close of business on the first business day after the day on which such amounts are actually deferred from the Participant’s Compensation, at the fair market value on such date; and (iii) any withdrawal or distribution made to a Participant that decreases such Participant’s Accounts ceased being invested in the Measurement Fund(s), in the percentages applicable to such period, no earlier than one (1) business day prior to the distribution, at the fair market value on such date.  The Participant’s Employer Matching Contribution for a Plan Year shall be credited to his Employer Matching Account for purposes of this subsection 5.1(b), in the manner determined on the first day of the Election Period for such Plan Year, as determined by the Committee or the Administrator.

		
	5.2
	Subaccounts.

		
	(a)
	The Committee or the Administrator shall establish and maintain, with respect to a Participant’s Deferral Account, a Subaccount with respect to each Plan Year, to which shall be credited the amount equal to the portion of the Participant’s Compensation earned during such Plan Year that he elects to defer pursuant to Section 3.1, debited by amounts equal to distributions to and withdrawals made by the Participant and/or his Beneficiary and adjusted for investment earnings and losses pursuant to Article V.

24

		
	(b)
	The Committee or the Administrator shall establish and maintain, with respect to a Participant’s Employer Matching Account, a Subaccount with respect to each Plan Year, to which shall be credited the amount equal to the Employer Matching Contributions made pursuant to Section 3.3 on behalf of such Participant in respect of such Participant’s Compensation earned during such Plan Year that he elects to defer pursuant to Section 3.1, debited by amounts equal to distributions to and withdrawals made by the Participant and/or his Beneficiary and adjusted for investment earnings and losses pursuant to Article V.

ARTICLE VI.     
VESTING
		
	(a)
	Subject to subsections (b) and (c), each Participant shall be 100% vested in his Deferral Account and his Matching Account at all times.  

		
	(b)
	A Participant’s deferred Restricted Stock Units credited to a Subaccount of such Deferred Account shall be subject to the vesting conditions applicable to the Restricted Stock Unit award.  The Subaccount of such Participant’s Deferral Amount for a deferred Restricted Stock Unit award shall become vested in accordance with the vesting conditions applicable to such Restricted Stock Unit award.  To the extent such Restricted Stock Unit award is forfeited, the Subaccount of such Participant’s Deferral Account for such award shall be forfeited immediately following the event causing such forfeiture and the amount of such Subaccount shall be debited from such Deferral Account.

		
	(c)
	A Participant’s deferred Elective Phantom Share Amount credited to a Subaccount of such Participant’s Deferral Account shall be subject to the vesting conditions applicable to the initial or annual equity award for which such Elective Phantom Share Amount is credited.  The Subaccount of such Participant’s Deferral Account for a deferred Elective Phantom Share Amount shall become vested in accordance with the vesting conditions applicable to such equity award, except as provided in subsection 7.3(b).  To the extent such equity award is forfeited, the Subaccount of such Participant’s Deferral Account for such Elective Phantom Share Amount shall be forfeited immediately following the event causing such forfeiture and the amount of  such Subaccount shall be debited from such Deferral Account.

ARTICLE VII.     
DISTRIBUTIONS
7.1    Distribution of Accounts. 
		
	(a)
	Distribution at Separation from Service or Disability.

25

(1)    Normal Form.  
(A)    Except as provided in subparagraph (B), paragraph (2), paragraph (3) or Section 7.3, upon the Separation from Service or Disability of a Participant, a Participant’s Distributable Amount with respect to each Plan Year beginning on or after January 1, 2011 shall be paid to the Participant in a lump sum in cash (or shares of Sempra Energy common stock for Restricted Stock Unit Subaccounts) on the Participant’s Payment Date. Except as provided in subparagraph (B), paragraph (2), paragraph (3) or Section 7.3, upon the Separation from Service or Disability of a Participant, a Participant’s Distributable Amount with respect to each Plan Year beginning prior to January 1, 2011 shall be paid to the Participant in substantially equal annual installments in cash (calculated as set forth in paragraph 7.1(a)(6) over ten (10) years beginning on the Participant’s Payment Date.
(B)    Upon the Separation from Service of a Participant who is a Specified Employee (determined as of the date of Separation from Service), the distribution of the Participant’s Distributable Amount shall be delayed until the first business day which is six (6) months after the date of such Participant’s Separation from Service (or, if earlier, the date of such Participant’s death) in accordance with Section 409A of the Code and shall be paid on the business day determined by the Committee or the Administrator that is on or within thirty (30) business days thereafter; provided, however, that if the Payment Date applicable to the Distributable Amount is later than the delayed payment date determined pursuant to this subparagraph 7.1(a)(1)(B), payment of the Distributable Amount shall be made on the Payment Date. 
(2)    Optional Forms.  Instead of receiving his Distributable Amount with respect to each Plan Year as described at subparagraph 7.1(a)(1)(A), the Participant may elect in accordance with Section 3.2 one of the following optional forms of payment (on the form provided by Committee or the Administrator) (or shares of Sempra Energy common stock for Restricted Stock Unit Subaccounts) at the time of his deferral election for such Plan Year: 
(i)    equal annual installments in cash (or shares of Sempra Energy common stock for Restricted Stock Unit Subaccounts) (calculated as set forth in paragraph 7.1(a)(6)) over five (5) years beginning on the Participant’s Payment Date, 
(ii)    equal annual installments in cash (or shares of Sempra Energy common stock for Restricted Stock Unit Subaccounts) (calculated as set forth in paragraph 7.1a(a)(6)) over ten (10) years beginning on the Participant’s Payment Date, or
(iii)    equal annual installments in cash (or shares of Sempra Energy common stock for Restricted Stock Unit Subaccounts) (calculated as set forth in paragraph 7.1(a)(6)) over fifteen (15) years beginning on the Participant’s Payment Date, or
(iv)    a lump sum in cash (or shares of Sempra Energy common stock for Restricted Stock Unit Subaccounts) .

26

The payment of such Participant’s Distributable Amount with respect each Plan Year shall be made or commence on such Participant’s Payment Date (or, if applicable, the date determined under subparagraph (a)(1)(B)). 
(3)    Distribution Election Changes.  In the event that a Participant changes his distribution form election with respect to a Plan Year in accordance with subsection 3.2(b), and such new distribution form election becomes effective, upon the Separation from Service or Disability of such Participant, the Distributable Amount with respect to such Plan Year shall be paid to the Participant in accordance with such new distribution form election.
(4)    Small Accounts.  Notwithstanding provision to the contrary, in the event the total of a Participant’s Distributable Amounts with respect to all Plan Years is equal to or less than $25,000, such Distributable Amounts shall be distributed to the Participant (or his Beneficiary, as applicable) in a lump sum.
(5)    Investment Adjustments.  The Participant’s Accounts shall continue to be adjusted for investment earnings and losses pursuant to Section 4.2 and Section 4.3 of the Plan until all amounts credited to his Accounts under the Plan have been distributed.
(6)    Calculating Payments.  All payments made under the Plan shall be determined in accordance with the following:

(i)    All installment payments made under the Plan shall be determined in accordance with the annual fractional payment method, calculated as follows:  the balance of Subaccounts in the Participant’s Accounts with respect to a Plan Year shall be calculated as of the Payment Date.  The annual installment shall be calculated by multiplying this balance by a fraction, the numerator of which is one, and the denominator of which is the remaining number of annual payments due the Participant.  By way of example, if the Participant elects ten (10) year installments for the distribution of the Subaccounts in his Accounts with respect to a Plan Year, the first payment shall be 1/10 of the balance of such Subaccounts in his Accounts calculated as described in this definition.  The following year, the payment shall be 1/9 of such Subaccounts in the balance of the Participant’s Accounts, calculated as described in this definition.  Each annual installment for an applicable year shall be paid on or as soon as practicable after the Payment Date (but in any event no later than the last business day of such applicable year).
(ii)    All lump sum payments made under the Plan shall be calculated as of the close of business on the Payment Date.  The lump sum shall be paid in accordance with the provisions of the Plan applicable thereto.
		
	(b)
	Distribution on a Scheduled Withdrawal Date.  

(1)    In the case of a Participant who has elected a Scheduled Withdrawal Date for a distribution to be made prior to the Participant’s Separation from Service or while still a Director, in each case to the extent permitted by the Plan, such Participant shall receive his Withdrawal Amount as shall have been elected by the Participant to be subject to the Scheduled Withdrawal Date.  A Participant’s 

27

Scheduled Withdrawal Date with respect to amounts of Compensation deferred in a given Plan Year must be at least three (3) years from the last day of the Plan Year for which such deferrals are made. 

(2)    The Withdrawal Amount shall be paid in a lump sum in cash.

(3)    A Participant may elect to change the Scheduled Withdrawal Date for the Withdrawal Amount for any Plan Year in accordance with subsection 3.2(d). 

(4)    In the event of Participant’s Separation from Service or Disability prior to a Scheduled Withdrawal Date, the Participant’s entire Withdrawal Amount shall be paid in accordance with the Participant’s election with respect to such Plan Year under subsection 7.1(a).  In the event of a Participant’s death prior to a Scheduled Withdrawal Date, the Participant’s entire Withdrawal Amount shall be paid as soon as practicable after the Participant’s death in a lump sum in cash.  

		
	(c)
	Distribution upon Death.  In the event a Participant dies before he has begun receiving distributions under subsection 7.1(a), his Accounts shall be paid to his Beneficiary in the same manner elected by the Participant.  In the event a Participant dies after he has begun receiving distributions under subsection 7.1(a) with a remaining balance in his Accounts, the balance shall continue to be paid to his Beneficiary in the same manner. 

7.2    Hardship Distribution.
A Participant shall be permitted to elect a Hardship Distribution of all or a portion of his Accounts under the Plan prior to the Payment Date, subject to the following restrictions:

28

		
	(a)
	The election to take a Hardship Distribution shall be made by filing the form provided by the Committee or the Administrator before the date established by the Committee or the Administrator.

		
	(b)
	The Committee or the Administrator shall have made a determination that the requested distribution constitutes a Hardship Distribution in accordance with subsection 7.2(d).

		
	(c)
	The amount determined by the Committee or the Administrator as a Hardship Distribution shall be paid in a single lump sum in cash as soon as practicable after the end of the calendar month in which the Hardship Distribution election is made and approved by the Committee or the Administrator.  The Hardship Distribution shall be distributed proportionately from the Subaccounts in the Participant’s Accounts, excluding the Restricted Stock Unit, Elective Phantom Share Amount or Nonelective Phantom Shares Amount Subaccounts and any amounts invested in the Sempra Energy Stock Fund.

		
	(d)
	If a Participant receives a Hardship Distribution, the Participant shall be ineligible to contribute deferrals to the Plan for the remainder of the Plan Year in which the Hardship Distribution is received or the immediately following Plan Year.  “Hardship Distribution” shall mean a severe financial hardship to the Participant resulting from (i) an illness or accident of the Participant, the Participant’s spouse or of his dependent (as defined in Section 152(a) of the Code), (ii) loss of a Participant’s property due to casualty, or (iii) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, as determined by the Committee or the Administrator in accordance with Section 409A of the Code.  The amount of the Hardship Distribution with respect to a severe financial hardship shall not exceed the amounts necessary to satisfy such hardship, plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship), as determined by the Committee or the Administrator in accordance with Section 409A of the Code. 

7.3    Effect of a Change in Control.
		
	(a)
	In the event there is a Change in Control, the person who is the chief executive officer (or, if not so identified, Sempra Energy’s highest ranking officer) shall name a third-party fiduciary as the sole member of the Committee immediately prior to such Change in Control and the appointed fiduciary, shall provide for the immediate distribution of the Accounts under the Plan in lump sum payments and cash to the extent permitted under Section 409A of the Code.  

29

		
	(b)
	Upon a Change in Control, all unvested Elective Phantom Share Amounts credited to a Director’s Account under the Plan shall vest.

		
	(c)
	Upon and after the occurrence of a Change in Control, the Company must (i) pay all reasonable administrative fees and expenses of the appointed fiduciary, (ii) indemnify the appointed fiduciary against any costs, expenses and liabilities including, without limitation, attorney’s fees and expenses arising in connection with the appointed fiduciary's duties hereunder, other than with respect to matters resulting from the gross negligence of the appointed fiduciary or its agents or employees and (iii) timely provide the appointed fiduciary with all necessary information related to the Plan, the Participants and Beneficiaries.  

		
	(d)
	Notwithstanding Section 9.3, in the event there is a Change in Control no amendment may be made to this Plan except as approved by the third-party fiduciary; provided, however, that in no event shall any amendment approved by the third-party fiduciary have any retroactive effect to reduce any vested amounts allocated to a Participant’s Accounts.  Upon a Change in Control, assets shall be placed in a rabbi trust in an amount which shall equal the full accrued liability under this Plan as determined by an actuarial firm appointed by the Board immediately prior to such Change in Control or, in the absence of such appointment, Willis Towers Watson or a successor actuarial firm.

7.4    Inability to Locate Participant.
In the event that the Committee or the Administrator is unable to locate a Participant or Beneficiary within two (2) years following the required Payment Date, the amount allocated to the Participant’s Accounts shall be forfeited.  If, after such forfeiture, the Participant or Beneficiary later claims such benefit, such benefit shall be reinstated without interest or earnings from the date of forfeiture, subject to applicable escheat laws.
7.5    Prohibition on Acceleration of Distributions. 
The time or schedule of payment of any withdrawal or distribution under the Plan shall not be subject to acceleration, except as provided or permitted under Section 409A of the Code (including, without limitation, acceleration on termination of the Plan or in connection with a change in control event within the meaning of Section 409A of the Code). 
7.6    Distributions Pursuant To QDROs.  
Except as otherwise provided by the Committee or the Administrator, distributions to alternate payees pursuant to a QDRO will be made or commence within ninety (90) days of the date on which the domestic relations order is determined to be a QDRO in one of the following forms elected by the alternate payee (including by the terms of the QDRO):

30

		
	(a)
	a lump sum,

		
	(b)
	annual installments (calculated as set forth at paragraph 7.1(a)(6)) over five (5) years,

		
	(c)
	annual installments (calculated as set forth at paragraph 7.1(a)(6) over ten (10) years, or

		
	(d)
	annual installments (calculated as set forth at paragraph 7.1(a)(6)) over fifteen (15) years.

If no election is made by the alternate payee within sixty (60) days following the date on which the domestic relations order is determined to be a QDRO, the alternate payee’s benefit will be paid in a lump sum in accordance with the provisions of this Section 7.6.
ARTICLE VIII.     
ADMINISTRATION
8.1    Committee.
The Committee shall administer the Plan in accordance with this Article.  
8.2    Administrator.  
The Administrator, unless restricted by the Committee, shall exercise the powers expressly granted hereunder and under Sections 8.4 and 8.5 except when the exercise of such authority would materially affect the cost of the Plan to the Company or materially increase benefits to Participants. 
8.3    Committee Action.
The Committee shall act at meetings by affirmative vote of a majority of the members of the Committee present at a meeting at which a quorum is present.  Any action permitted to be taken at a meeting may be taken without a meeting if, prior to such action, a written consent to the action is signed by all members of the Committee and such written consent is filed with the minutes of the proceedings of the Committee.  A member of the Committee shall not vote or act upon any matter which relates solely to himself or herself as a Participant.  The chairman or any other member or members of the Committee designated by the chairman may execute any certificate or other written direction on behalf of the Committee.

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8.4    Powers and Duties of the Committee.
The Committee, on behalf of the Participants and their Beneficiaries, shall enforce the Plan in accordance with its terms and shall have all powers necessary to accomplish its purposes as set forth herein, including, but not by way of limitation, the following:
		
	(a)
	To select the Measurement Funds in accordance with Section 4.1 hereof;

		
	(b)
	To conclusively construe and interpret the terms and provisions of the Plan and to remedy any inconsistencies or ambiguities hereunder;

		
	(c)
	To select employees eligible to participate in the Plan;

		
	(d)
	To compute and certify to the amount and kind of benefits payable to Participants and their Beneficiaries;

		
	(e)
	To maintain all records that may be necessary for the administration of the Plan;

		
	(f)
	To provide for the disclosure of all information and the filing or provision of all reports and statements to Participants, Beneficiaries or governmental agencies as shall be required by law;

		
	(g)
	To make and publish such rules for the regulation and operation of the Plan and procedures for the administration of the Plan as are not inconsistent with the terms hereof;

		
	(h)
	To appoint a plan administrator or any other agent, and to delegate to them such powers and duties in connection with the administration of the Plan as the Committee may from time to time prescribe; and

		
	(i)
	To take all actions necessary for the administration of the Plan.  

8.5    Construction and Interpretation.
The Committee shall have full discretion to conclusively construe and interpret the terms and provisions of this Plan, which interpretations or construction shall be final and binding on all parties, including but not limited to the Company and any Participant or Beneficiary.  The Committee shall administer such terms and provisions in accordance with any and all laws applicable to the Plan.  The Committee or the Administrator may provide for different rules, rights and procedures for different Participants or Eligible Individuals and there is no requirement under the Plan that all Participants or Eligible Individuals receive the same benefits, payment rights, election rights or any other benefits or rights, subject to the requirements of applicable law.
8.6    Information.
The Company shall furnish the Committee or the Administrator with such data and information as may be required for it to discharge its duties.  Participants and other persons entitled to benefits under the 

32

Plan must furnish the Committee or the Administrator such evidence, data or information as the Committee or the Administrator considers necessary or desirable to carry out the terms of the Plan.
8.7    Compensation, Expenses and Indemnity.
		
	(a)
	The members of the Committee shall serve without compensation for their services hereunder.

		
	(b)
	The Committee is authorized at the expense of the Company to employ such legal counsel and other advisors as it may deem advisable to assist in the performance of its duties hereunder.  Expenses and fees in connection with the administration of the Plan shall be paid by the Company.

		
	(c)
	To the extent permitted by applicable state law, the Company  shall indemnify and save harmless the Committee and each member thereof, the Board of Directors and any delegate of the Committee who is an employee of the Company or any Affiliate and the Administrator against any and all expenses, liabilities and claims, including legal fees to defend against such liabilities and claims arising out of their discharge in good faith of responsibilities under or incident to the Plan, other than expenses and liabilities arising out of willful misconduct.  This indemnity shall not preclude such further indemnities as may be available under insurance purchased by the Company or provided by the any bylaw, agreement or otherwise, of the Company as such indemnities are permitted under state law.

8.8    Quarterly Statements.
Under procedures established by the Committee or the Administrator, a Participant shall receive a statement with respect to such Participant’s Accounts on a quarterly basis as of each March 31, June 30, September 30 and December 31.
8.9    Disputes.
		
	(a)
	Claim.

A person who believes that he is being denied a benefit to which he is entitled under the Plan (hereinafter referred to as “Claimant”) may file a written request for such benefit with the Administrator, setting forth his claim.  The request must be addressed to the Administrator at Sempra Energy at its then principal place of business.
		
	(b)
	Claim Decision.

Upon receipt of a claim, the Administrator shall advise the Claimant that a reply shall be forthcoming within ninety (90) days and shall, in fact, deliver such reply within such period.  The Administrator may, however, extend the reply period for an additional ninety (90) days for special circumstances.

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If the claim is denied in whole or in part, the Administrator shall inform the Claimant in writing, using language calculated to be understood by the Claimant, setting forth: (i) the specified reason or reasons for such denial; (ii) the specific reference to pertinent provisions of this Plan on which such denial is based; (iii) a description of any additional material or information necessary for the Claimant to perfect his claim and an explanation of why such material or such information is necessary; (iv) appropriate information as to the steps to be taken if the Claimant wishes to submit the claim for review; and (v) the time limits for requesting a review under subsection 8.9(c).
		
	(c)
	Request For Review.

With sixty (60) days after the receipt by the Claimant of the written opinion described above, the Claimant may request in writing a review the determination of the Administrator.  Such review shall be completed by the most senior officer of Human Resources of Sempra Energy for Participants who are Managers and by the Committee for Participants who are Executive Officers or Directors.  Such request must be addressed to the Secretary of Sempra Energy, at its then principal place of business.  The Claimant or his duly authorized representative may, but need not, review the pertinent documents and submit issues and comments in writing for consideration by the most senior officer of Human Resources of Sempra Energy or the Committee, as applicable.  If the Claimant does not request a review within such sixty (60) day period, he shall be barred and estopped from challenging the Administrator’s determination.
		
	(d)
	Review of Decision.

Within sixty (60) days after the receipt of a request for review by the most senior officer of Human Resources of Sempra Energy or the Committee, as applicable, after considering all materials presented by the Claimant, the most senior officer of Human Resources of Sempra Energy or the Committee, as applicable, shall inform the Participant in writing, in a manner calculated to be understood by the Claimant, the decision setting forth the specific reasons for the decision contained specific references to the pertinent provisions of this Plan on which the decision is based.  If special circumstances require that the sixty (60) day period be extended, the most senior officer of Human Resources of Sempra Energy or the Committee, as applicable, shall so notify the Claimant and shall render the decision as soon as possible, but no later than one hundred and twenty (120) days after receipt of the request for review.
ARTICLE IX.     
MISCELLANEOUS
9.1    Unsecured General Creditor.
Participants and their Beneficiaries, heirs, successors, and assigns shall have no legal or equitable rights, claims, or interest in any specific property or assets of the Company.  No assets of the Company shall be held in any way as collateral security for the fulfilling of the obligations of the Company under this Plan.  Any and all of the Company’s assets shall be, and remain, the general unpledged, unrestricted assets of the Company.  The Company’s obligation under the Plan shall be merely that of an unfunded and unsecured promise of the Company to pay money in the future, and the rights of a Participant or Beneficiary shall be no greater than those of an unsecured general creditor of the Company.  It is the intention of the Company that this Plan be unfunded for purposes of the Code and Title I of ERISA.

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9.2    Restriction Against Assignment.
		
	(a)
	The Company shall pay all amounts payable hereunder only to the person or persons designated pursuant to the terms of the Plan and not to any other person or entity.  No right, title or interest in the Plan or in any Account may be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution.  No right, title or interest in the Plan or in any Account shall be liable for the debts, contracts or engagements of the Participant or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence.

		
	(b)
	Notwithstanding the provisions of subsection 9.2(a), a Participant’s interest in his Account may be transferred by the Participant pursuant to a QDRO. 

9.3    Amendment, Modification, Suspension or Termination.
(a)    Subject to Section 7.3, the Committee may amend, modify, suspend or terminate the Plan in whole or in part, except that no amendment, modification, suspension or termination shall have any retroactive effect to reduce any vested amounts allocated to a Participant’s Accounts. In the event of Plan termination, distributions shall continue to be made in accordance with the terms of the Plan, subject to the provisions of subsection 7.3(a). 
(b)    Notwithstanding anything to the contrary in the Plan, if and to the extent Sempra Energy shall determine that the terms of the Plan may result in the failure of the Plan, or amounts deferred by or for any Participant under the Plan, to comply with the requirements of Section 409A of the Code, Sempra Energy shall have authority to take such action to amend, modify, cancel or terminate the Plan or distribute any or all of the amounts deferred by or for a Participant, as it deems necessary or advisable, including without limitation:
(1)    Any amendment or modification of the Plan to conform the Plan to the requirements of Section 409A of the Code (including, without limitation, any amendment or modification of the terms of any applicable to any Participant’s Accounts regarding the timing or form of payment).
(2)    Any cancellation or termination of any unvested interest in a Participant’s Accounts without any payment to the Participant.
(3)    Any cancellation or termination of any vested interest in any Participant’s Accounts, with immediate payment to the Participant of the amount otherwise payable to such Participant.
Any such amendment, modification, cancellation, or termination of the Plan may adversely affect the rights of a Participant without the Participant’s consent.

35

9.4    Designation of Beneficiary.
		
	(a)
	Each Participant shall have the right to designate, revoke and redesignate Beneficiaries hereunder and to direct payment of his Distributable Amount to such Beneficiaries upon his death. 

		
	(b)
	Designation, revocation and redesignation of Beneficiaries must be made in writing in accordance with the procedures established by the Committee or the Administrator and shall be effective upon delivery to the Committee or the Administrator.

		
	(c)
	If there is no Beneficiary designation in effect, or if no designated beneficiary survives the Participant, then the Participant’s spouse shall be the Beneficiary; provided, however, that if there is no surviving spouse, the duly appointed and currently acting personal representative of the Participant’s estate shall be the Beneficiary.

		
	(d)
	After the Participant’s death, any Beneficiary (other than the Participant’s estate) who is to receive installment payments may designate a secondary beneficiary to receive amounts due under this Plan to the Beneficiary in the event of the Beneficiary’s death prior to receiving full payment from the Plan.  If no secondary beneficiary is designated, it shall be the Beneficiary’s estate.

9.5    Insurance.    
		
	(a)
	As a condition of participation in this Plan, each Participant shall, if requested by the Committee, the Administrator, or the Company, undergo such examination and provide such information as may be required by the Company with respect to any insurance contracts on the Participant’s life and shall authorize the Company to purchase life insurance on his life, payable to the Company 

		
	(b)
	If the Company maintains an insurance policy on a Participant’s life to fund benefits under the Plan and such insurance policy is invalidated because (i) the Participant commits suicide during the two (2) year period beginning on the first day of the first Plan Year of such Participant’s participation in the Plan or because (ii) the Participant makes any material misstatement of information or nondisclosure of medical history, then, to the extent determined by the Committee or the Administrator in its sole discretion, the only benefits that shall be payable hereunder to such Participant or his Beneficiary are the payment of the amount of deferrals of Compensation then credited to the Participant’s Accounts but without any interest including interest theretofore credited under this Plan.   

9.6    Governing Law.
Subject to ERISA, this Plan shall be construed, governed and administered in accordance with the laws of the State of California.

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9.7    Receipt of Release.
Any payment to a Participant or the Participant’s Beneficiary in accordance with the provisions of the Plan shall, to the extent thereof, be in full satisfaction of all claims against the Committee, the Administrator, and the Company with respect to this Plan.  The Committee or the Administrator may require such Participant or Beneficiary, as a condition precedent to such payment, to execute a receipt and release to such effect prior to the payment date specified under the Plan.
9.8    Payments Subject to Section 162(m) of the Code.
To the extent Sempra Energy reasonably anticipates that, if a distribution under the Plan were made as scheduled, Sempra Energy’s deduction with respect to such payment would not be permitted due to the application of Section 162(m) of the Code, Sempra Energy, in the discretion of the Committee, may delay the distribution; provided, however, that any such delayed distribution shall be made either (a) during the Participant’s first taxable year in which Sempra Energy reasonably anticipates, or should reasonably anticipate, that, if the payment is made during such year, the deduction of such payment will not be barred by application of Section 162(m) of the Code or (b) during the period beginning with the date of the Participant’s Separation from Service  and ending on the later of (i) the last day of the year in which the Participant’s Separation from Service occurs or (ii) within 2-1/2 months following the Participant’s Separation from Service; and provided further that, where any scheduled payment to a specific Participant is delayed in Sempra Energy’s taxable year accordance with this Section 9.9, the delay in payment will be treated as a subsequent deferral election under Section 409A of the Code unless all scheduled payments to that Participant that could be delayed in accordance with this Section 9.9 are also delayed.  Any amounts deferred pursuant to this limitation shall continue to be credited/debited with additional amounts in accordance with Article IV, even if such amount is being paid out in installments.  Notwithstanding anything to the contrary in this Plan, this Section 9.9 shall not apply to any distributions made after a Change in Control.
9.9    Payments on Behalf of Persons Under Incapacity.
In the event that any amount becomes payable under the Plan to a person who, in the sole judgment of the Committee or the Administrator, is considered by reason of physical or mental condition to be unable to give a valid receipt therefore, the Committee or the Administrator may direct that such payment be made to any person found by the Committee or the Administrator, in its sole judgment, to have assumed the care of such person.  Any payment made pursuant to such termination shall constitute a full release and discharge of the Committee, the Administrator, and the Company.
9.10    Limitation of Rights.
Neither the establishment of the Plan nor any modification thereof, nor the creating of any fund or account, nor the payment of any benefits shall be construed as giving to any Participant or other person any legal or equitable right against the Company except as provided in the Plan.  In no event shall the terms of employment of, or membership on the Board by, any Participant be modified or in any be effected by the provisions of the Plan.

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9.11    Exempt ERISA Plan.
The Plan is intended to be an unfunded plan maintained primarily to provide deferred compensation benefits for directors and a select group of management or highly compensated employees within the meaning of Sections 201, 301 and 401 of ERISA and therefore to be exempt from Parts 2, 3 and 4 of Title I of ERISA.
9.12    Notice.
Any notice or filing required or permitted to be given to the Committee or the Administrator under the Plan shall be sufficient if in writing and hand delivered, sent by overnight courier, or sent by registered or certified mail, to the principal office of Sempra Energy, directed, in the case of the Committee, to the attention of the General Counsel and Secretary of Sempra Energy and in the case of the Administrator, to the Administrator.  Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.
9.13    Errors and Misstatements.
In the event of any misstatement or omission of fact by a Participant to the Committee or the Administrator or any clerical error resulting in payment of benefits in an incorrect amount, the Committee or the Administrator, as applicable, shall promptly cause the amount of future payments to be corrected upon discovery of the facts and shall pay or, if applicable, cause the Plan to pay, the Participant or any other person entitled to payment under the Plan any underpayment in a lump sum or to recoup any overpayment from future payments to the Participant or any other person entitled to payment under the Plan in such amounts as the Committee or the Administrator shall direct or to proceed against the Participant or any other person entitled to payment under the Plan for recovery of any such overpayment.
9.14    Pronouns and Plurality.
The masculine pronoun shall include the feminine pronoun, and the singular the plural where the context so indicates.
9.15    Severability.
In the event that any provision of the Plan shall be declared unenforceable or invalid for any reason, such unenforceability or invalidity shall not affect the remaining provisions of the Plan but shall be fully severable, and the Plan shall be construed and enforced as if such unenforceable or invalid provision had never been included herein.
9.16    Status.
The establishment and maintenance of, or allocations and credits to, the Accounts of any Participant shall not vest in any Participant any right, title or interest in and to any Plan assets or benefits except at the time or times and upon the terms and conditions and to the extent expressly set forth in the Plan.

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9.17    Headings.
Headings and subheadings in this Plan are inserted for convenience of reference only and are not to be considered in the construction of the provisions hereof.
ARTICLE X.    
EMPLOYEES OF SEMPRA ENERGY TRADING CORPORATION  
AND SEMPRA ENERGY SOLUTIONS LLC
This Article X includes special provisions relating to the benefits of the Participants in the Plan who are employed by Sempra Energy Trading Corporation (“SET”) and Sempra Energy Solutions LLC (“SES”). 
		
	(a)
	Background.  Certain SET and SES employees are Participants in this Plan.  

On July 9, 2007, Sempra Energy, Sempra Global, Sempra Energy Trading International, B.V. (“SETI”) and The Royal Bank of Scotland plc (“RBS”) entered into the Master Formation and Equity Interest Purchase Agreement, dated as of July 9, 2007 (the “Master Formation Agreement”), which provides for the formation of a partnership, RBS Sempra Commodities LLP (“RBS Sempra Commodities”), to purchase and operate Sempra Energy’s commodity-marketing businesses.  Pursuant to a Master Formation Agreement, RBS Sempra Commodities will be formed as a United Kingdom limited liability partnership and RBS Sempra Commodities will purchase Sempra Energy’s commodity-marketing subsidiaries.  
Prior to the Closing, SET will be converted into a limited liability company (“SET LLC”).  Following such conversion, SET employees will be employed by SET LLC.  Prior to the Closing, SES will become a wholly-owned subsidiary of SET LLC.
Also, prior to the Closing, Sempra Energy will own, directly or indirectly through wholly-owned subsidiaries, 100% of the membership interests in SET LLC and SES.  Prior to the Closing, SET LLC and SES will be disregarded entities for federal income tax purposes.
Effective as of the Closing, RBS Sempra Commodities will purchase 100% of the membership interests in SET LLC.  
As provided in the Master Formation Agreement, an employee of SET LLC who is actively at work on the Closing Date will continue to be employed by SET LLC immediately after the Closing Date, and an employee of SES who is actively at work on the Closing Date will continue to be employed by SES (each such employee is referred to as a Transferred Employee).  
Also, as provided in the Master Formation Agreement, with respect to an employee of SET LLC or SES who is not actively at work on the Closing Date because such employee is on approved short-term disability or long-term disability leave in accordance with the Sempra Plans (such employee is referred to as an Inactive Employee), if such Inactive Employee returns to active work at the conclusion of such leave, and in any case within six (6) months following the Closing Date (or such longer period as is required 

39

by applicable law), such Inactive Employee shall become a Transferred Employee as of the date of such person’s return to active employment with the SET LLC or SES (such date is referred to as the Transfer Date).
Effective as of the Closing, SET LLC will be a wholly-owned subsidiary of RBS Sempra Commodities, SES will be an indirect, wholly-owned subsidiary of RBS Commodities, Sempra Global and SETI will be partners in RBS Sempra Commodities, and Sempra Energy will own, indirectly through wholly-owned subsidiaries, at least a 50% profits interest in RBS Sempra Commodities.
		
	(b)
	Separation from Service

(1)    Effective as of the Closing, RBS Sempra Commodities will be a member of a group of trades or businesses (whether or not incorporated) under common control for purposes of Section 414(c) of the Code and Treasury Regulation Section 1.414(c)-2, as determined under Section 409A of the Code,  that includes Sempra Energy and its wholly-owned subsidiaries.  Consequently, effective as of the Closing, RBS Sempra Commodities will be included in the “service recipient” that includes Sempra Energy and its wholly-owned subsidiaries, as defined under Section  409A of the Code.  
(2)    A Participant who is an employee of SET LLC or SES, and who is a Transferred Employee effective as of the Closing Date, will not have a Separation from Service solely as a result of the purchase of the membership interests of SET LLC by RBS Sempra Commodities effective as of the Closing.
(3)    A Participant who is an employee of SET LLC or SES, who is an Inactive Employee, and who becomes a Transferred Employee effective on a Transfer Date after the Closing Date, will not have a Separation from Service solely as a result of the purchase of the membership interests of SET LLC by RBS Sempra Commodities or becoming a Transferred Employee on a Transfer Date after the Closing Date.
(4)    For purposes of the Plan, a participant in the Plan who is an employee of SET LLC or SES, and who is or becomes a Transferred Employee, will have a Separation from Service on or after the Closing Date (or the Transfer Date, if applicable), as determined under subsection 1.2(rr) and Section 409A of the Code. 
		
	(c)
	Certain Defined Terms.

For purposes of this Article X, the terms “Closing,” “Closing Date,” “Inactive Employee,” “Sempra Plans,” “Transferred Employees” and “Transfer Date” shall have the meanings ascribed to such terms under the Master Formation Agreement.
ARTICLE XI.    
SECTION 409A OF THE CODE
Anything in this Plan to the contrary notwithstanding, it is intended that any amounts payable under this Plan shall either be exempt from or comply with Section 409A of the Code so as not to 

40

subject any Participant to payment of any additional tax, penalty or interest imposed under Section 409A of the Code. The provisions of this Plan shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Section 409A of the Code yet preserve (to the nearest extent reasonably possible) the intended benefit payable to Participant.  In no event shall the Company guarantee the tax treatment of participation in the Plan or any benefit provided hereunder.  Notwithstanding any other provision of the Plan, in the event any of the amounts deferred or payable under the Plan are grandfathered for purposes of Section 409A of the Code, such amounts shall be subject to the terms and conditions “that applied to such amounts prior to the effective date of Section 409A of the Code.
  

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Executed at San Diego, California this 9th day of November, 2017.
SEMPRA ENERGY

By:    ______________________________
		
	Title:
	Sr. Vice President and Chief Human Resources and Administrative Officer

Date:    November 9, 2017

42

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}]]